biotechnology and demand concerns: the case of genetically modified us sugar beets p. lynn kennedy louisiana state university andrew schmitz university of florida karen lewis delong university of tennessee while genetically modified (gm) crops have provided significant agricultural productivity gains in recent years, some consumers oppose gm products as being unsafe. we use the case of gm sugar beets and their recent adoption by us producers to examine the effect of gm technology using a partial equilibrium framework. this analysis provides insights on the demand for sugar from gm us sugar beets versus sugar from non-gmo us sugarcane. we show that the negative demand impacts for sugar from gmo sugar beets can outweigh the supplyinduced gains of gm sugar beet research and development. however, this is not likely to come about by mandatory labeling given the recent adoption of the national bioengineered food disclosure standard, which does not classify sugar as a bioengineered food. key words: biotechnology, genetically modified crops, sugar beets, sugarcane, sugar.   consumer acceptance of sugar derived from genetically modified sugarcane in south africa hester vermeulen, marnus gouse, marion delport, marlene louw, & taaibah miller bureau for food and agricultural policy (bfap), south africa the study investigated the perceptions of and acceptance by south african consumers regarding sugar derived from genetically modified sugarcane ('gm sugar'). the results are based on a demographically representative consumer survey in the gauteng province of south africa, conducted in 2017. logistic regression models indicated that socio-economic group and age were the most significant factors explaining consumers' willingness to purchase 'gm sugar.' product acceptance decreased with socio-economic status and age. additional information on the potential benefits of sugar derived from gm cane increased middle-income and more affluent consumers' willingness to purchase, with the opposite effect on low income consumers. pro-gm consumers were willing to pay an 8.7% premium for 'gm sugar,' motivated by the environmental benefits argument. positive marketing messages focusing on the potential role of 'gm sugar' in food security improvement, food affordability, and ensuring the future of the local sugar industry should be disseminated through appropriate marketing channels as presented in this paper. key words: gm sugarcane, gm sugar, willingness to accept, south africa, consumer, information, education, multinomial logistic regression, african cane borer (eldana saccharina), insect resistant, herbicide tolerant. suggested citation: vermeulen, h., gouse, m., delport, m., louw, m., & miller, t. (2020). consumer acceptance of sugar derived from genetically modified sugarcane in south africa. agbioforum, pre-production publication, 1-12. available on the world wide web: http://www.agbioforum.org.   an economic account of innovation policy in canada: a comparison of canola, wheat, and pulses stavroula malla university of lethbridge, canada derek g. brewin university of manitoba, canada there is significant evidence that investments in agricultural research generate gains to farmers and the economy as a whole. the objective of this paper is to provide an assessment of the biotech industry in canada including an update of producers’ benefits from herbicide tolerant canola, comparisons of gains with other crops, and the need for government involvement. the study also assesses the evolution of research policies in canada over time, exploring the role of government in today’s crop research. the study develops a framework to analyze options for agricultural research, including property rights, subsidies to private researchers, and public research in the context of three representative case studies: canola (a large crop with significant privatization in plant breeding), wheat (a large crop without significant privatization), and pulses (a small crop with adequate crop development funding through check-offs). current challenges and opportunities facing crop innovation are also discussed. key words: .   agbioforum, 24(1): 129-133. ©2022 agbioforum organic food brand trust and brand loyalty: evidence from thailand supawadee pattweekongka kmitl business school, king mongkut's institute of technology ladkrabang, bangkok, thailand email: supawadee.pa@kmitl.ac.th this study investigates the antecedents of trust in organic food brands and the effect of brand trust on brand loyalty. previous research has addressed brand trust, but none has examined brand trust concerning brand loyalty in organic goods, a developing trend in many nations. a survey was done with 386 thai consumers of organic foods. using path analysis, the magnitude and relationships between variables were estimated. the findings indicate that brand competency and generosity increase organic brand trust. moreover, brand trust was found to influence both attitudes and behaviors about brand loyalty. the study predicts that brand trust inspired 76% of the purchasing behavior loyalty. key words: brand trust, brand loyalty, organic food, brand competency, brand credibility, brand benevolence. 1. introduction as a result of consumers' preference for nutritious, safe, and high-quality foods during the past few decades, the production and consumption of organic foods have expanded considerably worldwide. thailand, like other nations, has seen an increase in organic food consumption in recent years (yanakittkul et al., 2020). organic farming is still in its infancy in thailand. hence only a small number of organic food products are produced (dhiravegin, 2017). providing farmers with information through the synergy of supply chain partnerships will increase the sustainability of organic vegetable production (tongkum, 2014). the administration identified organic agriculture as one of the country's top priorities (cavite et al., 2022). thailand's organic vegetable business is still in its infancy. one of the causes is that consumers lack confidence in organic foods and their certification's trustworthiness (pattweekongka et al., 2019). brand confidence is the customer's conviction that the brand will perform as expected. trust and organic knowledge are significant predictors of organic food selection (pattweekongka et al., 2019). their faith in organic companies should facilitate consumers' purchasing of organic food. brand confidence decreased risk consciousness and lowered skepticism (bae, 2018). previous research has demonstrated the correlation between brand trust and loyalty (akoglu et al., 2021). developing client trust in a brand is of utmost importance, but our current understanding of how this is accomplished is limited. therefore, this research sought to address two primary research questions: (1) what are the precursors of brand trust? (2) how does brand trust impact brand loyalty? in the present study, organic brands are identified by symbols, logos, trademarks, or brand personalities representing the community or cooperative in which the organic food products are produced. the overall purpose of this research was to inspect antecedents of trust in organic food brands in thailand and to explore how that trust impacts brand loyalty. 2. literature review and hypothesis development 2.1 brand loyalty and brand trust customers may migrate to a different brand if certain conditions, such as a price increase, occur. brand loyalty is demonstrated by a customer's continuous repurchase of a cherished brand (van der westhuizen, 2018). two aspects of brand loyalty can be measured: attitude loyalty and behavior loyalty (srivastava et al., 2016). behavioral loyalty, also known as behavior brand loyalty, refers to recurrent purchases of the same brand, whereas attitudinal loyalty, also known as attitude brand loyalty, refers to the intention to continue purchasing the same (samlejsin et al., 2022; srivastava et al., 2016). dimensions of brand trust include credibility, competency, and altruism (chanolmsted et al., 2022) previous research demonstrated that brand trust is a significant predictor of customer brand commitment and, consequently, brand loyalty (pattweekongka et al., 2019). customers frequently purchase reputable brands because of lower perceived risk (atulkar, 2020). the measure of a customer's commitment to a particular brand consists of brand trust and brand loyalty (atulkar, 2020). according to earlier research (akoglu et al., 2021; pattweekongka et al., 2019), brand trust significantly affects brand loyalty. although hiranrithikorn et al. (2019) discovered that trust has no statistical impact on brand loyalty, this does not mean that trust does not influence brand loyalty. therefore, it is hypothesized that: h1: brand trust will have a positive effect on attitudinal brand loyalty. h2: brand trust will have a positive impact on behavioral brand loyalty. 2.2 brand benevolence fundamentally, benevolence is connected with the firm that owns the brand, not the product itself(mal et al., 2018). customers' consistent favorable experiences with the mailto:supawadee.pa@kmitl.ac.th agbioforum, 24(1), 2022 | 130 pattweekongka. — organic food brand trust and brand loyalty: evidence from thailand company's products may increase their trust in the company over time. consequently, it is hypothesized that: h3: a boost in brand benevolence escalates brand trust. 2.3 brand credibility brand credibility is the capacity and propensity to consistently deliver what has been promised (del barriogarcía et al., 2019). the prior study demonstrates that credibility increases brand confidence (ngo et al., 2020). thus, it is hypothesized: h4: an increase in brand credibility increases brand trust. 2.4 brand competence brand competence refers to the capacity of a brand's owners to recognize consumer issues and satisfy their demands. chan-olmsted & kim (2022) have shown that competence is crucial to brand trust. the fifth hypothesis thus is: h 5: an increase in brand competence increases brand trust. accordingly, the conceptual foundation of this study (see figure 1) is that brand kindness, credibility, and competence all contribute to brand trust, which promotes attitude and behavior loyalty. figure 1. conceptual framework notes: trustinb = trust in brand, behbl = behavior brand loyalty, attbl = attitude brand loyalty 3. research methodology 3.1 population and sampling technique according to aonngernthayakorn and pongquan (2017), seven provinces make up central thailand's most influential organic agricultural zone. consequently, these provinces represent thai consumers of organic foods in this study. the sample size was calculated to be 386 respondents. they utilize a stratified sample technique by region and organic food distribution route. according to kateprasit (2018), these four channels include hypermarkets, supermarkets, community markets, and organic-only stores, and each channel has a different percentage of client quotas. 3.2 questionnaire and instrument development a structured questionnaire was devised to assess brand trust, brand loyalty attitudes, and brand loyalty behaviors. metrics for evaluating brand competence, brand trustworthiness, and brand goodwill. all responses were measured on a 7-point scale ranging from 1 (strongly disagree) to 7 (strongly agree) (strongly agree). checking the research instrument's content validity, item-objective congruence was determined to be 0.89 (ioc). cronbach's alpha was calculated for all measurements, and the resulting reliability scores ranged from 0.822% to 0.946%. the poll investigated customers' perceptions of a brand's competence, credibility, and altruism, as well as their attitudes and behaviors about brand loyalty. consequently, the structural model had five variables. the cronbach's alpha values for all five measurement models (see table 1) exceeded the 0.70 thresholds that hair et al. (2018) advised. table 1; reliability of the measurement models variable cronbach's alpha number of items behavioral brand loyalty 0.863 4 attitude brand loyalty 0.825 4 brand competency 0.806 2 brand credibility 0.802 2 brand benevolence 0.885 2 3.3 data collection and statistics analysis method from april to june 2018, surveys were collected utilizing random sampling for data collection. path analysis was performed on the data using ibm spss amos software for statistical model fit and hypothesis testing tests. hair et al. suggested using the goodness-of-fit statistical test (2018). here, the model-fitting statistical criterion approach was utilized. normalized chi-square (cmin/df), root mean square error of approximation (rmsea), normed fit index (nfi), tucker-lewis index (tli), and comparative fit index are five well-known goodness-of-fit metrics (cfi). all indicators utilized in the measurement model were evaluated using comparison criteria indicating the model's adequacy (see table 3). 4. results 4.1 path analysis technique as indicated in table 2, principal components factor analysis was utilized to uncover the questionnaire's underlying factors. five structures and fourteen items made up the measuring model. the factor loadings of the item's scales ranged from 0.752% to 0.927%. all of these exceeded the acceptable criterion of 0.7, as stated by hair et al. (2018). at < p 0.01, all item scales were significant. the variables' squared multiple correlation (smc) ranged from 0.566 to 0.800. the acceptable dependability requirement is a value greater than 0.5. according to hair et al. (2018), sufficient convergent validity criteria for the measurement model include composite reliability, cr > 0.70, and average variance extracted, ave > 0.50. all five measured constructs had cr values of 0.856 or above, suggesting they surpassed the allowed limit. the ave values varied from 0.655-0.793, indicating that the discriminant validity of all five measurement constructs was satisfactory. agbioforum, 24(1), 2022 | 131 pattweekongka. — organic food brand trust and brand loyalty: evidence from thailand table 2: factor loading, reliability and validity of all measures of constructs construct code questions standardized loading p-value smc convergent validity cr ave behavior brand loyalty bb1 i buy my regular organic brand more often than other brands. 0.825 <0.001 0.681 0.912 0.722 bb3 i buy more categories of products from my regular organic brand. 0.752 <0.001 0.566 bb4 the amount of money i spend on my regular organic brand is increasing. 0.884 <0.001 0.781 bb8 i am happy to spend time finding my regular organic brand. 0.927 <0.001 0.860 attitude brand loyalty bl4 i intend to repurchase my regular organic brand. 0.813 <0.001 0.660 0.883 0.655 bl1 i will probably repurchase my regular organic brand. 0.853 <0.001 0.728 bl11 i consider myself a loyal customer of my regular organic brand. 0.796 <0.001 0.634 bl2 i will keep buying the same organic brand as long as i am satisfied. 0.772 <0.001 0.595 brand competency b1 i believe that my regular organic brand is better than other brands. 0.873 <0.001 0.762 0.875 0.778 b2 i believe that the manufacturer of my regular organic brand is professional in organic food production. 0.891 <0.001 0.794 brand credibility b4 b3 i believe that the organic brand i buy has transparent quality information. i think that the label of the organic band i buy has precise information. 0.865 0.915 <0.001 <0.001 0.749 0.838 0.884 0.793 brand benevolence b8 i think buying my regular organic brand is a way to participate in helping farmers and society. 0.836 <0.001 0.731 0.856 0.749 b9 i think the organic brand i buy has ethical operation management. 0.894 <0.001 0.776 notes: smc = squared multiple correlation, cr = composite reliability, ave = average variance extracted table 3: goodness-of-fit metrics for the measurement model cmin/df rmsea nfi tli cfi measurement model (df=63) 2.850 0.069 0.957 0.959 0.972 criterion for indices (hair et al., 2014) < 3.00 (adjust for n > 250) < 0.07 >0.90 > 0.95 > 0.95 interpretation gf gf gf gf gf notes: gf = good fit, cmin/df = normalized chi-square, rmsea = root mean square error of approximation, nfi = normed fit index, tli = tucker-lewis index, cfi = comparative fit index, and n = 386 table 4: correlations among the constructs paths method standardized estimates hypotheses interpret βeta p-value trustinb behbl 0.756 <0.001 h1 accepted trustinb attbl 1.066 <0.001 h2 accepted benevolence trustinb 0.232 0.005 h3 accepted credibility trustinb -0.316 0.097 h4 rejected competence trustinb 0.900 < 0.001 h5 accepted notes: trustinb = trust in brand, behbl = behavior brand loyalty, attbl = attitude brand loyalty agbioforum, 24(1), 2022 | 132 pattweekongka. — organic food brand trust and brand loyalty: evidence from thailand all five indices suit the measurement model's good-of-fit metrics well (see table 3). these measures demonstrate how effectively the theoretical model captured the data. the standardized path estimates and hypothesis tests are summarized in table 4. all predictions came true. it was confirmed that h1, h2, and h3 were statistically significant. with estimate values of 0.756 and 1.066, respectively, brand trust strongly predicted both behavioral brand loyalty and attitudinal brand loyalty (p < 0.01). as a result, attitudinal brand loyalty had a higher estimate than behavioral brand loyalty. on average, 76% of consumers can predict brand loyalty based on behavior. brand benevolence and perceived brand competence, both of which had estimated values of 0.232 (p = 0.005) and 0.900 (p < 0.01), respectively, strongly predict brand trust. brand trust, however, is not considerably impacted by brand credibility. 5. conclusion and discussion we looked at the causes of brand loyalty and the impact of brand trust on organic food brands. according to the findings, perceived brand competency and kindness boost brand trust. our investigation, however, showed that brand trust is not significantly impacted by brand credibility. the results showed that behavioral and attitudinal loyalty were both influenced by the brand trust. organic buying habits are driven by attitude, brand loyalty, and reputation (intention to buy). in other words, consumers who trust an organic brand are likely to remember it and plan to purchase it. however, just 76% of consumers still make purchases based on a product's intended use throughout the decision-making stage (behavioral loyalty). thai consumers are more likely to repurchase an organic food brand because they firmly believe it. manufacturers should strengthen brand competency and brand benevolence to increase brand trust. customers should have the chance to try out marketers' organic brands. this can be accomplished by improving brand competency through consumer happiness with their brands, swift delivery, and accuracy of the food served. this brings to mind a prior study by yu et al. (2021) using an evolutionary game technique, which suggested a more effective state when the organic retailers shared knowledge more promptly. in addition to brand benevolence, organic brand producers should practice corporate social responsibility (csr), which includes taking the initiative to address issues affecting their employees and the environment. since people believe organic food is better for their health and the environment, organic food businesses can market their brand's altruism by protecting the environment and taking care of their employees. according to prior research, customer happiness will result from csr for the environment and employees (jermsittiparsert et al., 2019). as the significant success that makes an organic food firm more sustainable, brand competence, brand benevolence, and brand trust are elements discovered in the current research as the antecedents of brand loyalty in intention and buying behavior. organic food products must undergo frequent quality monitoring that the consumer directly notices. consumers' favorable opinions of organic food goods must build up over time until they feel a sense of loyalty toward the brand. another crucial element is that brand loyalty will give organic food firms fresh prospects. market competitiveness, global dynamics, and the covid-19 epidemic may make it possible for organic food businesses to profit from the global difficulties being experienced. due to consumers' confidence and loyalty towards the organic brands they frequently purchase, their decisions to buy these brands are not influenced by concerns about the prices of the items, as their buying behavior for organic food has become automatic. references akoglu, h. e., & özbek, o. 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(2020). a model of farmers intentions towards organic farming: a case study on rice farming in thailand. heliyon, 6(1), e03039. doi:https://doi.org/10.1016/j.heliyon.2019.e0303 9 declaration of ownership this research is my original work. conflict of interest none ethical clearance this study was approved by my institution. http://dx.doi.org/10.5267/j.uscm.2019.1.005 https://doi.org/10.1002/mar.21146 https://doi.org/10.1108/bfj-03-2020-0167 https://doi.org/10.1108/bfj-03-2020-0167 https://www.ijicc.net/images/vol8iss8/8803pattweekongka_2019_e_r.pdf https://www.ijicc.net/images/vol8iss8/8803pattweekongka_2019_e_r.pdf https://doi.org/10.14456/aamr.2022.2 https://doi.org/10.1016/j.jretconser.2016.04.009 https://doi.org/10.1016/j.jretconser.2016.04.009 https://so03.tci-thaijo.org/index.php/jirgs/article/view/227379 https://so03.tci-thaijo.org/index.php/jirgs/article/view/227379 https://doi.org/10.1108/jpbm-07-2016-1281 https://doi.org/10.1016/j.heliyon.2019.e03039 https://doi.org/10.1016/j.heliyon.2019.e03039 agbioforum, 24(1): 170-177. ©2022 agbioforum the economic of farmers, system, management, and technology renewable energy based nyoman sudapet department of management, narotama university, indonesia email: nyoman.sudapet@narotama.ac.id muhammad ikhsan setiawan department of civil engineering, narotama university, indonesia email: ikhsan.setiawan@narotama.ac.id achmad muchayan department of system information, narotama university, indonesia email: achmad.muchayan@narotama.ac.id agus sukoco department of management, narotama university, indonesia email: agus.sukoco@narotama.ac.id hendro sutowijoyo department of civil engineering, narotama university, indonesia email: hendro.sutowijoyo@narotama.ac.id che zalina zulkifli faculty of art, computing and creative industry , universiti pendidikan sultan idris, tanjung malim, perak, malaysia email: chezalina@fskik.upsi.edu.my the agriculture sector has important role in economic development of indonesia. the village economy in indonesia is dependent on agriculture sector. the challenges of energy crisis and not acceptable to the farmers for economic growth and contribution in national economy. therefore, the research objectives the economics of farmers, and the use of agricultural technology renewable energy-based research trends. this research was conducted descriptively based on scopus.com data. researchers obtained 249 rural digital documents over the last five years, where each indexed paper has an average of 1015% more citations than its closest competitor. more cited references have a broader analysis of bibliometric and historical trends, a complete author profile, and a better h-index measure for authors who started publishing before 1996. this study concludes that the united states has the most research articles on digital villages, followed by the united kingdom, australia, and india. the university of aberdeen (u.k.) has the most research articles on the digital villages, followed by the university of the west of england (u.k.) and shanghai university of finance and economics (china). therefore, villages development research growing fast nowadays. key words: menturus jombang indonesia, covid19, renewable energy, agricultural technology, village development 1. introduction menturus village is one of the villages in kudu subdistrict, jombang city, indonesia (surya et al., 2021). the village economy in menturus village is an agricultural economy (ghazouani et al., 2020). the village government's economy is supported by the village budget, with an income of idr 2,076 billion, a total expenditure of idr 2,109 billion, so the budget is minus idr 33,259 million (widiyanti et al., 2019). efficiency, loans, financing and additional income are solutions to cover the minus budget (nugraha et al., 2019; saudi et al., 2019). increase in income, not only from village funds, village fund allocations, taxes and levies, which totaled rp 1.23 billion. the economic potential of the village is sourced from a population of 2446 predominantly muslim, there are 2 kindergartens, 1 elementary school, 5 village health facilities, 7 mosques, 815 houses with pln facilities, 2 cooperatives, easy access to elementary, middle, and high school education facilities, universities, villages safe from tsunami (maulidia et al., 2019; tambunan et al., 2020; tuna et al., 2019; wang et al., 2022), but no early warning system for natural disasters, maintenance available for normalization of rivers, canals, embankments, ditches, drainages, reservoirs, with 62 ha of residential settlements, 147 ha of rice fields, 52 ha of dry fields, 97 ha of technical irrigation , 50 ha of non-technical irrigation, 100 ha of planting area, 94 ha of harvested area, 8 food and beverage industries, 30 grocery stores, 35 restaurants, 1 cell tower, strong signal condition, asphalt road surface. the research objective is to analyze the economics of farmers, and the use of agricultural technology renewable energy-based research trends no doubt, the formers in the modern agriculture sector demands renewable energy (rahman et al., 2020; sasana et al., 2018; zafar et al., 2019), because they believe that renewable energy is only source that could provide sustainability to the farmers related to their works (aydoğan et al., 2020; bashir et al., 2019; tong et al., 2020). indeed, the role of farmers is necessary in the agriculture sector because they are contributing a lot in the national food and foreign exports (armeanu et al., 2021; fathoni et al., 2021; salman et al., 2019; sharvini et al., 2018). the countries that are focusing on the development of farmers and facilitating them for sustainable growth, the farmers of these countries are producing and contributing in the economic growth on the sustainable level (akhmad et al., 2019; azhgaliyeva et al., 2020; carfora et al., 2019; halimanjaya, 2019; nathaniel et al., 2020). on the other hand, the farmers that are less reluctant and they have little facility by the government in the energy consumption, the agriculture growth of these farmers is declined (syahputra et al., 2021). many scholars have concluded that sustainable production of agriculture is possible with sustainabile development of farmers and their basic needs. a lot of research has been done on the agriculture growth in every country because agriculture sectorhas significant mailto:nyoman.sudapet@narotama.ac.id mailto:ikhsan.setiawan@narotama.ac.id mailto:achmad.muchayan@narotama.ac.id mailto:agus.sukoco@narotama.ac.id mailto:hendro.sutowijoyo@narotama.ac.id mailto:chezalina@fskik.upsi.edu.my agbioforum, 24(1), 2022 | 171 sudapet, setiawan, muchayan, sukoco, sutowijoyo and zulkifli. — the economic of farmers, system, management… contribution in the economic growth of different countries. however, these researchers have not discussed the important role of renewable energy and the use of modern technology for the farmers for agricultural growth. indeed, this study has identified this gap in literature. the study is based on the descriptive statics that are critically important for enhancement of understanding of further scholars to the literature that is already published for sustainable economic growth of the country. this research has widely discussed all aspect of renewable energy in the literature to contribute in the theory. in this regard, this study has important theoretical implications because the literature in this research is evaluated and explained in the descriptive way for proper understanding. moreover, based on this research the acdamics can develop better understanding about the further gaps in literature related to the technology and renreable energy for the farmers to contribute in the body of knowledge. 2. literature review based on years 2018-2020 research papers, include: 1) katircioglu et al. (2014). estimating tourism-induced energy consumption and co2 emissions: the case of cyprus. renewable and sustainable energy reviews, 29, 634-640. in this study, the authors have demonstrated the importance of sustianble tourism that is critical for the economic growth of any country (katircioglu et al., 2014). the emphasis on the pendamic is presented because it was a reason that restricted the tourists all around the world to visist east java. no doubt, tourism has importance but this study has highlighted that the traditionalways of tourism are failed during the covid-19 because it was a challenge for the survival of the humanity. furthermore, this study demonstrated the importance of sustainable tourism with sustainable development goals that are appropriate to promote tourism in any country. this study has concluded that there must be sustainability in the tourism and the walfare of public should be supported by the reliable tourist activites that are necessary to promote tourism sector in any country. the implicatons of this research has remarkable contribution in the body of knowledge and literature. 2) kelly et al. (2007). modelling tourism destination energy consumption and greenhouse gas emissions: whistler, british columbia, canada. journal of sustainable tourism, 15(1), 67-90. similarly, this research is also based on the concept of tourism that is widely discussed in the modern and contemperoty world due to globalization and logistic system. this study has focused on the role of digital tourism that is advanced form of traditional tourism (kelly et al., 2007). indeed, digital tourism has facilities for the public that had no access to different tourist’s destinations earlier to it. in this regard, the role of digital tourism must be considered in the effective way for appropriate development of tourism sector. the digital tourism is refined form of tradiational tourism that is facilitating the whole sector in the innovate way. the technology is key factor in digital tourism according to this research because it is facilitating the people to have connection with each other and develop better opportunities in the economic development. moreover, this research has elobrated that the digital tourism is advanced way of tourism promotion and sustainable economic development. 3) zaman et al. (2016). tourism development, energy consumption and environmental kuznets curve: trivariate analysis in the panel of developed and developing countries. tourism management, 54, 275-283. moreover, this research has emphasized the important role of supply chain for tourism promotion because supply chain is appropriate tool that is directly contributing in the economic growth (zaman et al., 2016). the toursim promotion in indonesia can be increased if the proper supply chain management system is applied to facilitate the people. in the light of this study, the easiness in the selection of supply chain depends on the disclosed cost and the confidence about the supply chain delivery. the modern tourists also focus on supply chian for selecting the destination to visit because they consider that supply chain is important factor for logistic management. moreover, it has strong influence on the economic grpwth of different countries as the farmers are beneficiary of the modern supply chains in these countries. indeed, the government should focus on the role of supply chain and work in the innovative way for improve the operations of supply chains for promotion of tourism in indonesia. furthermore, this study disclosed that the sustainability in the tourism sector is gurantee for appropriate development of public benefit that would contribute in the economic growth of the country. in this regard, this study has remarkbale discussion necessary for sustainability in the tourism sector. 4) pata et al. (2022). exploring the impact of tourism and energy consumption on the load capacity factor in turkey: a novel dynamic ardl approach. environmental science and pollution research, 29(9), 13491-13503. additionally, this study has revealed the crucial function that the supplier plays in promoting tourist industry as it is an effective strategy that directly contributes to economic expansion (pata et al., 2022). if the right logistic chain control system is used to help the populace, the development of toursim in indonesia can be increased. according to this research, the ease of choosing a supply chain varies depending on the price that is given and the assurance that the supply chain would deliver. sophisticated travelers evaluate the supply chain when deciding where to go since they believe it to be a crucial component of logistical management. furthermore, because agriculture in these nations benefit from sophisticated distribution network, it has a significant impact on the financial health of many nations. in fact, the administration needs to pay attention to the importance of distribution networks and work creatively to enhance their agbioforum, 24(1), 2022 | 172 sudapet, setiawan, muchayan, sukoco, sutowijoyo and zulkifli. — the economic of farmers, system, management… performance in order to promote travel in java. the research also found that the hospitality industry's permanence is a guarantee for the proper implementation of public benefits, which would aid in the economy of the nation. this report contains a noteworthy discussion that is essential for the tourism industry's future. 5) liu et al. (2019). the dynamic relationship between co2 emission, international tourism and energy consumption in pakistan: a cointegration approach. tourism review. this study has demonstratd the research on marine and tourism by determining its impact on indonesia. this study has concluded that the research on the maritime affairs and the role of marine economy is important in the promotion of tourism (liu et al., 2019). on the other hand, this study has demonstrated that the countries that have access to marine, these countries can grow the tourism sector in the appropriate way for sustainable development of tourism sector. in the earlier reseach, it is also concluded that the economy of indonesia is supported by the tourism sector related to marine tourism. 6) rauf et al. (2021). do tourism development, energy consumption and transportation demolish sustainable environments? evidence from chinese provinces. sustainability, 13(22), 12361. this research has significantly discussed the important role of food services in the tourism promotion because food service is considered as appropriate for development of effective supply chain (rauf et al., 2021). indeed, the earlier research has neglected the role of food in tourism according to this study, but the importance of food sector in tourism in necessary. the tourists have personal willingness to select the food chain for any purpose or their attraction to the culture. therefore, the much focus on the food chain can facilitate the tourism sector in indonesia. this study further demonstrated that the appropriate development of food chain is responsibilie for effective working that would be benefical for proper supply chain working. indeed, the role of food is important by this study in tourism as it motivate different tourist to visit the country and enjoy the food. the responsibility of the government is to work on the food sector development and ensure that the tourists are rightly facilitated with the food. this study has remarkable theoretical implications that are necessary to promote the importance of tourism and benefit the farmers with new reousrces to prodcuce the agriclutre land for the tourism and support the economy. 7) sghaier et al. (2019). tourism development, energy consumption and environmental quality in tunisia, egypt and morocco: a trivariate analysis. geojournal, 84(3), 593-609. in this research, the authors focus on the role of small and medium enterprises for the sustainable development of economy for the modern countries (sghaier et al., 2019). the responsibility of the business management is to ensure that the public is facilitad in the right way, and the purpose of business should be in the economic and regional development according to this study. furthermore, this research enhanced the importance of sustainable development of economy with the help of small businesses. no doubt, the farmers in any country are contributing into the economic growth with the help of agriclutre land that is necessary for the countries benefit. researchers get information that the economics of farmers, and the use of agricultural technology renewable energybased research is multiplying nowadays from the above reference. the economics of farmers, and the use of agricultural technology renewable energy-based research supports supply chain management, logistics, supplier selection, supply chain planning, sustainability, small and medium enterprises, and central business district (cbd). the economics of farmers, and the use of agricultural technology renewable energy-based research has shown significant improvement in the last five years. 3. methods and data collection villages development aims to encourage rural development through technology-based or digital platforms. this research was conducted descriptively based on scopus.com data, which includes more than 1.7 billion references. researchers obtained 249 rural digital documents over the last five years, where each indexed paper has an average of 10-15% more citations than its closest competitor. more cited references have a broader analysis of bibliometric and historical trends, a complete author profile, and a better h-index measure for authors who started publishing before 1996. scopus is an abstract and citation-neutral database, which curated by independent subject matter experts. it puts powerful discovery and analytical tools in the hands of researchers, librarians, institutional research managers, and funders. scopus generates precise citation search results and autoupdated researcher profiles, creating more prosperous relationships between people, published ideas, and institutions. in addition to protecting the integrity of the scientific record, scopus makes the performance, ranking, and reputation of institutional research better. the collection of literature that scopus draws on in its search for green, innovative or sustainable construction covers a wide range of topics. descriptions and testing of construction materials accounted for a quarter of publications in 2018. indexing terms related to energy efficiency and project planning are less frequent. it shows that the internet of things has shown significant improvement in the last four years. (sudapet et al., 2019). the analysis process uses (1) research country documents, (2) affiliation documents, (3) affiliation documents, and (4) funding sponsor documents. 4. results and discussion first, the researcher obtained the state documents of the research. most of the papers came from the united states with 48 articles, followed by britain 31, australia 27, india 27, china 25, spain 14, south africa 13, canada 10, and malaysia 10 documents. the united states has the most agbioforum, 24(1), 2022 | 173 sudapet, setiawan, muchayan, sukoco, sutowijoyo and zulkifli. — the economic of farmers, system, management… research articles on digital villages, followed by the united kingdom, australia, and india. figure 1. scopus.com the landscape figure 2. the documents of the research country figure 2 above shows the scopus.com the documents of the research country about villages development research. second, the researcher obtained affiliation documents. the university of aberdeen contributed 14 papers. it was followed by the university of the west of england 6 documents, shanghai university of finance and economics 5, harvard medical school 4, deakin university 4, the university of canberra 4, universidad de salamanca 4, and unsw sydney 4 documents. the university of aberdeen (u.k.) has the most research articles on the digital villages, followed by the university of the west of england (u.k.) and shanghai university of finance and economics (china). figure 3 above shows the scopus.com the documents of the affiliation about villages development research. third, the researcher obtained the document of the field of study. social sciences contributed 116 documents, computer science 81, engineering 41, medicine 37, business, management and accounting 21, environmental science 19, arts and humanities 18, economics, econometrics and finance 17, and earth and planetary sciences 16 documents. the field of social studies is the favorite research article on digital villages, followed by computer science and engineering. figure 4 above shows the scopus.com the documents of the subject area about villages development research. finally, researchers obtained funding sponsor documents—the u.k. research and innovation produced 11 documents, engineering and physical sciences research council (u.k.) 9, u.s. department of health and human services 9, european commission 7, national institutes of health 7, national natural science foundation of china 7, government of canada 5, economic and social research council (u.k.) 4, and the social sciences and humanities research council of canada 4 documents. the u.k. research and innovation have the most research funding sponsors in the digital village, followed by the engineering and physical sciences research council (u.k.) and the u.s. department of health and human services. figure 5 above shows the scopus.com the documents of the funding sponsor about villages development research. agbioforum, 24(1), 2022 | 174 sudapet, setiawan, muchayan, sukoco, sutowijoyo and zulkifli. — the economic of farmers, system, management… figure 3. the documents of the affiliation figure 4. the documents of the subject area figure 5. the documents of the funding sponsor agbioforum, 24(1), 2022 | 175 sudapet, setiawan, muchayan, sukoco, sutowijoyo and zulkifli. — the economic of farmers, system, management… figure 6. rice milling solar energy, agricultural technology renewable energy figure 6 above shows the rice milling solar energy, agricultural technology renewable energy, support economic of farmers 5. conclusion by and large, villages development aims to encourage rural development through technology-based or digital platforms. this research was conducted descriptively based on scopus.com data, which obtained 249 documents with the title villages for the last five years. the united states has the most research articles on digital villages, followed by the united kingdom, australia, and india. the university of aberdeen (u.k.) has the most research articles on the digital villages, followed by the university of the west of england (u.k.) and shanghai university of finance and economics (china). the field of social studies is the favorite research article on digital villages, followed by computer science and engineering. the u.k. research and innovation have the most research funding sponsors in the digital village, followed by the engineering and physical sciences research council (u.k.) and the u.s. department of health and human services. so, villages development research growing fast nowadays. 6. implications and future direction this research has significant theoretical implications as it is a descriptive study that collected and evaluated the earlier publications to consider for sustianbility in the economic development. indeed, this research has collected references from the earlier studies and discussed the importance of renewable energy for the farmers. the literature review of this study is also remarkable as it has enhanced and enlighten the literature in the productive way to emphasize on the sustainability of the community development in indonesia. in this regard, the research gaps are also highlighted by the evaluated literature of this study to provide more attention for the future research to work on the sustainable development. on the other hand, this study has some remarkable gaps in the literature that are necessary for the improvement in the sustainability of public and farmers for economic growth in indonesia. this research recommends that the future research may consider the role of agriculture tourism in the economic growth of indonesia because it is emerging in the modern world. secondly, this study recommends that the literature on village development is emerging in these days, but the future researchers need to emphasize the role of agriculture tourism and religious tourism in sustainable economic development in indonesia, 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(2016). tourism development, energy consumption and environmental kuznets curve: trivariate analysis in the panel of developed and developing countries. tourism management, 54, 275-283. doi: https://doi.org/10.1016/j.tourman.2015.12.001 acknowledgments the authors thank to direktorat jenderal pendidikan tinggi kementerian pendidikan dan kebudayaan republik indonesia, for their grants financial support, riset desa riset keilmuan scheme, 2022. https://doi.org/10.1007/s10708-018-9878-z https://doi.org/10.1016/j.serj.2018.08.006 https://ieomsociety.org/proceedings/2022istanbul/790.pdf https://ieomsociety.org/proceedings/2022istanbul/790.pdf https://doi.org/10.32479/ijeep.11676 https://doi.org/10.1016/j.egyr.2021.01.015 https://doi.org/10.3390/en13225903 https://doi.org/10.1186/s13705-020-00253-6 https://doi.org/10.1186/s13705-020-00253-6 https://doi.org/10.1016/j.resourpol.2019.03.010 https://doi.org/10.1016/j.esr.2022.100886 http://dx.doi.org/10.17512/pjms.2019.19.2.37 https://doi.org/10.1016/j.jclepro.2018.12.081 https://doi.org/10.1016/j.tourman.2015.12.001 agbioforum, 21(3): 15-22. ©2019 agbioforum livelihood assets and livestock income: a case of mixed farming punjab-pakistan tusawar iftikhar ahmad department of economics, the islamia university of bahawalpur, pakistan email: tusawar.iftikhar@iub.edu.pk muhammad atif nawaz department of economics, the islamia university of bahawalpur, pakistan email: atif.nawaz@iub.edu.pk muhammad azhar bhatti department of economics, the islamia university of bahawalpur, pakistan email: azhar.bhatti219@gmail.com altaf hussain department of economics, the islamia university of bahawalpur, pakistan email: altafhussain@iub.edu.pk the study investigates the response pattern of income earned from livestock farming to livelihood assets in punjab (pakistan). primary data was collected from three regions (northern, central, and southern) of punjab. a multi-stage sampling technique was adopted to gather the information. the information collected from 347 farm households were processed and analyzed (descriptively and inferentially) to generate and interpret the results. on average, a farm household was earning nearly 50% of its total annual income from crops, 23% from livestock and 27% from nonfarm sources. amongst the four livelihood assets, financial capital could be ranked first in terms of its significant contribution to the annual income earned by a livestock farmer. own farmland size, qualitative and quantitative attributes of human capital, and status of the physical and financial capital available to the farmer, all translate into the income generated through livestock enterprise. results of this study indicate that farmer's own land size (lsize), farmer level of education (fedu), and managerial constraints (mgtc) have negatively associated with the income earned from livestock. while farmer's level of participation in livestock rearing activities (fptpn), herd size (hsize), income from crops (icrop), and nonfarm sources (inonf) have a positive impact on income earned from livestock. a portfolio of the available financial capital may enable a predominantly illiterate and resource-deficient livestock farmer to bear the expenditures made for the overall livestock production activities, which eventually enable him to earn higher income from livestock in a mixed farming system punjab.. key words: livestock income, livelihood assets, mixed farming, rural punjab. 1. introduction in the developing world, livestock contributes about 30 percent to the agricultural gross domestic product (world bank, 2009), and globally, it provides animal traction to nearly a quarter of the total area under crop production (devendra, 2010). multiple functions are performed by livestock in developing communities (moyo & swanepoel, 2010). livestock plays an essential role in the provision of food and nutrition in people's diets (neumann et al., 2003; randolph et al., 2007), and about 30 percent of human protein consumption comes from livestock products (steinfeld et al., 2006). they raise the social status of owners and contribute to gender-balanced development by providing women and children the opportunity to own livestock (waters-bayer & letty, 2010); serve as a means of reducing the risks associated with crop failure and as an income diversification strategy for resource-poor small scale farmers (freeman, kaitibie, moyo, & perry, 2007; thornton et al., 2007). the contribution of livestock to crop production through the provision of draught power and animal manure cannot be overlooked (herrero et al., 2010). in many parts of the developing world, livestock function as insurance policies and bank accounts (pell, stroebel, & kristjanson, 2010). due to improved incomes and changing dietary patterns, there is more demand for high value food commodities. so, an increased economic activity in livestock contributes to economic growth by fostering forward and backward linkages (mcdermott, rich, gebremedhin, & burrow, 2010). livestock is the backbone of the agriculture sector because it provides approximately 56 percent and the agriculture sector, which is almost 11 percent in gross domestic product. milk is the most significant indicator of livestock, ranked fourth in worldwide milk production after china, india, and the usa. livestock share is significant because it plays a significant role in poverty reduction policies (mfac, 2015). being the most significant contributor to the agricultural income of pakistan, the livestock sector has a significant role in the socioeconomic uplift of rural masses. according to government statistics, there are 29.56 million cattle, 27.33 million buffaloes, 26.49 million sheep, and 53.79 million goats in pakistan (government of pakistan, 2006). nearly 8 million families are engaged in livestock farming and generating more than 35 percent income from livestock production activities. so, it is a vital source of cash income and often the only source of income for the rural and especially the marginal people. during the economic year 2015-16, livestock contributed approximately 58.6 percent to the agriculture value-added and 11.6 percent to pakistan's overall gross domestic mailto:tusawar.iftikhar@iub.edu.pk mailto:atif.nawaz@iub.edu.pk mailto:azhar.bhatti219@gmail.com mailto:altafhussain@iub.edu.pk agbioforum, 21(3), 2019 | 16 ahmad, nawaz and bhatti. — livelihood assets and livestock income product (gdp). while during the same period, gross value addition of livestock at the constant cost factor of 2005-06 remained rs. 1292 billion, showing an increase of 3.63 percent over the same period last year (government of pakistan, 2017). so, for sustainable agriculture development government of pakistan needs to improve and expand the livestock and dairy products industry. the livestock sector requires proper attention to achieve multiple objectives, including food security, rural workforce absorption, and poverty alleviation. for a sustained contribution of the livestock sector to reduce poverty and raise the income of the people who earn their livelihoods from livestock, it is necessary to develop a good understanding of how the multifunctionality of the livestock can be improved (moyo & swanepoel, 2010). the low productivity of livestock can be attributed to several factors (mafawi, 2010). many social patterns can have their roles in manipulating livestock production system, and household characteristics are supposed to be influencing livestock production and income (a. m. ibrahim, shiwei, & wen, 2013). a general socioeconomic profile of farming households depicts that a large majority of households in the farming communities consists of large compound houses of which a large number is headed by a male and only a tiny fraction by the female. the majority of household heads are illiterate or are less educated (ahmad, raza, & saif, 2015), and the average family size of livestock producers is very large (elzaki, alla ahmed, elbushra, & ahmed, 2010). mixed farming implies an agricultural system where crop production and livestock raising activities are simultaneously practiced to increase farm income. small farmers and landless rural households makeup 90% of livestock ownership and are dependent heavily on income from the sale of milk and animals to meet their routine household expenses and nutritional intake. even in the mixed farming systems, livestock is the primary source of income for rural households and a source of productive employment for the poor and women (rahman et al., 2008; reshma, natikar, biradar, mundinamani, & havaldar, 2014). the livestock plays a significant role in a consumptionsmoothening measure under income and price risk in mixed farming systems of punjab province of pakistan (kurosaki, 1995). moreover, livestock holding is known to reduce income variability and act as a buffer that saves from abject poverty and miseries of life. a number of studies akram, naz, and ali (2011); kassa (2014); urgessa (2015) are there on the determinants of rural household income, but only a few studies derib (2010); iiyama (2006) are relating specifically to the determinants of livestock income. in the rural scenario of punjab, a large number of farmers are illiterate, small landholders, and resource deficient. these farming communities can gain better income from livestock through proper employment and utilization of their natural, human, and financial resources. the present article is novel because it focuses on the characteristics of the livestock farming households (in mixed crop-livestock farming system) concerning their livelihood assets utilization status. the prime focus is on the investigation of the role of financial capital in impacting livestock income. hence, the current study intends to gauge the response of income earned from livestock to the utilization of livelihood assets. however, income earned from livestock could be an outcome of multiple factors like socioeconomic, climatic, physical, financial, and others. but four kinds of livelihood assets— natural assets, human assets, physical assets, and financial assets—are also associated with earned income. so, the present study explicitly undertakes these four livelihood assets as the explanatory factors to investigate the response pattern of income earned from livestock to these assets. 2. materials and methods 2.1. the study area, sampling, and data the present study is based on primary data collected from three regions (northern, central, and southern) of punjab as punjab is the most important province of pakistan in terms of mixed farming. out of 79.61 million hectares of the total land area of pakistan, 20.63 million hectares (about 26% of the total) area is of the punjab province. moreover, this province occupies 59.3% and 72.0% of the country's cultivated and cropped area. likewise, punjab has the colossal livestock holdings' share in the country's total livestock population, including cattle (49%), buffalo (65%), sheep (24%), and goats (37%) (government of the punjab, 2014). a multi-stage sampling technique was adopted to collect the data. in the first stage, one district from each of the three regions of punjab was selected. secondly, from each district headquarter, four villages were selected. thirdly, from each village, thirty livestockkeeping households were chosen. hence, in total, 360 farm households were consulted for the collection of data. a well-structured questionnaire was used as an instrument, whereas face-to-face interviewing was applied as a technique for information gathering. finally, the information from 347 households was processed and analyzed to generate results. figure 1: panel-a representing agro-climatic zones of punjab and panel-b presenting selected districts from three zones 2.2. income as an outcome of livelihood assets theoretical analysis of household income reveals that farm agbioforum, 21(3), 2019 | 17 ahmad, nawaz and bhatti. — livelihood assets and livestock income and nonfarm sources have a vital role in rural household economies (akram et al., 2011). income (generally expressed in monetary terms) is the consumption and saving opportunity gained by an entity within a specified timeframe (barr, 2012). for households and individuals, income is the sum of all forms of earnings (i.e., the rents, wages, salaries, interest payments, profits, and other) received in a given period of time (case & fair, 2007) and for a firm, gross income can be defined as the sum of all revenue (barr, 2012). although income and livelihood are not synonymous, they are however inseparably connected (schwarze, 2004b), because income "at a given point in time is the most direct and measurable outcome of the livelihood process" (ellis, 2000). a livelihood includes the capabilities, assets (both material and social resources given in figure 2), and activities required for a means of living (stewart carloni & crowley, 2005). figure 2: types of livelihood assets (adopted from carloni & crowley, 2005) the livelihood approach and the assets-activities-incomes approach are the two approaches that have linked income and activities (schwarze, 2004a). according to ellis (2000), the assets (natural, physical, human, financial, and social capital), the activities, and the access to these assets together determine the living gained by the individual or household. the livelihood approach emphasizes the role of the household's resources as determinants of activities and highlights the link between assets, activities, and incomes (schwarze, 2004b). another approach developed by barrett and reardon (2000) has linked assets, activities, and incomes. assets correspond to the factors of production, activities to the exante production flows of asset services, and incomes to production outputs. according to a report carloni and crowley (2005), livelihood strategies refer to "the range and combination of activities and choices people make to achieve their livelihood goals." based on their personal goals, their resource (human, natural, financial, physical, and social) base, and their understanding of the options available, households develop and pursue different livelihood strategies. most rural households adopt a combination of farm (crop and livestock), off-farm and non-farm activities in different seasons to earn a living. levels of food security, income security, health, well-being, asset accumulation, and high status in the community are examples of livelihood outcomes that households achieve through their livelihood strategies (carloni & crowley, 2005). livelihood assets are combined to pursue different livelihood strategies to achieve specific livelihood outcomes such as increased income (alinovi, d’errico, mane, & romano, 2010). due to biased expenditure information obtained from livestock keepers, to analyze the determining factors of livestock income, the present study also focused only on the gross annual income from buffalo, cattle, sheep, and goats. the livestock income in this study was confined to income from the sale of animals and animals' milk in monetary terms (derib, 2010). as depicted in the table, for the present study, annual gross income earned from livestock sources could be viewed as an outcome of using four kinds of assets: natural, human, physical, and financial capitals owned by the herders. 2.3. econometric estimation amongst the descriptive statistics, mean values and standard deviations were calculated. for inferential statistics, a multiple linear regression equation was estimated to determine the response pattern of livestock income against various factors of production. the following multiple linear regression equation was constructed to analyze the relationship empirically. 𝐼𝐿𝑆𝑇𝑂𝐶𝐾 = 𝑓(𝐿𝑆𝐼𝑍𝐸, 𝐹𝐸𝐷𝑈, 𝐹𝑃𝑇𝑃𝑁, 𝐻𝑆𝐼𝑍𝐸, 𝐼𝐶𝑅𝑂𝑃, 𝐼𝑁𝑂𝑁𝐹, 𝑀𝐺𝑇𝐶) 𝐼𝐿𝑆𝑇𝑂𝐶𝐾 = β0 + β1𝐿𝑆𝐼𝑍𝐸 + β2 𝐹𝐸𝐷𝑈 + β3𝐹𝑃𝑇𝑃𝑁 + β4𝐻𝑆𝐼𝑍𝐸 + β5 𝐼𝐶𝑅𝑂𝑃 +β6𝐼𝑁𝑂𝑁𝐹 + β7𝑀𝐺𝑇𝐶 + ε𝑖 where, β0 𝑖𝑠 intercept, β1 𝑡𝑜 7 𝑎𝑟𝑒 coefficients of explanatory variables and ε𝑖 𝑖𝑠 error term the detail of variables is given in table 1: 3. results and discussion 3.1. descriptive statistical analysis the results of the descriptive analysis are given in section (a) of table 2. in the typology of livelihood assets, farmland is classified as natural capital. the study endorsed the findings that the majority of the farmers in punjab were small farmers. a farmer is classified as a small farmer when the size of his or her own landholding is less than 5 acres. in the mixed farming punjab, the average size of agricultural land owned by a farmer was 5.34 acres. in the rural context of punjab, a landless farmer serves as a tenant or as a sharecropper while a small landholder works as a self-cultivator on his own farmland. and farm labor is mainly shared by family members. as agbioforum, 21(3), 2019 | 18 ahmad, nawaz and bhatti. — livelihood assets and livestock income for as a farmer's level of education is concerned, many farmers in punjab are illiterate or less educated. in the surveyed area of rural punjab, the average number of schooling years completed by a farmer was 5.59. for a list of seven activities relating to livestock management, a livestock keeper was performing 1.60 activities on average. table 1: categorization and a priori expectation of explanatory variables used livelihood assets explanatory variables type of variable evidences from literature expected sign natural capital lsize : own land size continuous hassan, ishaq, farooq, and sadozai (2007) for pakistan; de janvry, sadoulet, and zhu (2005) + human capital fedu : farmer's level of education discrete s. ibrahim (2013) for sudan; aikaeli (2010) for tanzania; mabe and oladele (2012) for south africa; iiyama (2006) for kenya fptpn : farmer's level of participation in livestock rearing activities discrete s. ibrahim (2013); iiyama (2006); schwarze (2004a) for indonesia + physical capital hsize : herd size discrete derib (2010) for ethiopia; ishaq, farooq, and farooq (2007); mabe and oladele (2012); schwarze (2004a) + financial capital icrop : the total (gross) annual income derived from crops continuous + inonf: the total (gross) annual income derived from nonfarm sources continuous s. ibrahim (2013) + management mgtc : no. of managerial constraints discrete shahid, abdelfattah, and taha (2013) for pakistan dependent variable ilstock: the total (gross) annual income derived from livestock continuous derib (2010) source: author's own compilation from previous literature the physical capital portfolio of a farm household was generally comprised of an inventory of livestock assets kept by that household. at the same time, the financial capital portfolio of a farm household comprised diverse sources of household income from farm and nonfarm sources. a livestock herder can be classified as a small herder when the herd size owned by the herder is less than 4 animal heads (moaeen-ud-din & babar, 2006). in the study area, the average number of animals kept by a herder was more than 5 heads. the average annual incomes earned by the household from crops, animals, and nonfarm sources were respectively 1.200, 0.535, and 0.640 hundred thousand in pakistani rupees. it means that, on an average basis, a farm household is earning the central part (nearly 50%) of its total annual income from crops and the remaining part from livestock (23%) and nonfarm (27%) sources. the majority of the farmers had more than one managerial constraint regarding livestock farming. 3.2. inferential statistical analysis for this study, land as a livelihood asset refers to the area or a piece of ground that a farmer owns as property and uses it, particularly for agricultural purposes, to earn income. in the analyses, the farmer's own land size (lsize) was significant at 10% level of significance and negatively associated with the income earned from livestock (see table 2). the value of the coefficient implies that keeping the effect of other variables constant, one unit increase in the acreage of farmland owned by a farmer may lead to the 0.007 units decrease in the income earned through livestock which contradicts with (de janvry et al., 2005; hassan et al., 2007). in rural punjab, the landless or the farmers with less acreage of land assets rely more heavily on livestock farming to earn the more significant share of their total annual farm income. in the current study, human capital as a livelihood asset comprises two categories. first is the educational level of the farmer (fedu), depicting the qualitative aspect of the human capital involved in livestock farming. for the inclusion of this variable in the model, it was hypothesized that as compared to a farmer with nil or less number schooling years, a farmer with relatively more number schooling years could perform livestock-related tasks more efficiently and so would be able to earn relatively more income from livestock sources as compared to the illiterate and less educated farmers. the variable was found significant (at p-value < 10 %), but the negative sign of the coefficient rejects our pre-analysis proposed hypothesis by stating that a unit increase in the farmer's number of schooling years would bring about 0.011 units to decrease in the income earned from livestock. such a research agbioforum, 21(3), 2019 | 19 ahmad, nawaz and bhatti. — livelihood assets and livestock income finding could be attributed to the more reliance (for income) of a relatively educated livestock farmer on the nonfarm sources of earning instead of livestock sources. it is evident that after having more schooling years, doing a job in the services or nonfarm sector would be preferred over livestock or crop farming (aikaeli, 2010; s. ibrahim, 2013; iiyama, 2006; mabe & oladele, 2012). so, for educated farmers, livelihood opportunities are more comprehensive, and for them farming would be a secondary source of income, while uneducated or less educated farmers, in general, would be primarily and solely depending upon on-farm sources for earning their livelihoods. table 2: descriptive and inferential statistics livelihood assets (a) descriptive statistics (b) multiple linear regression explanatory variables mean (sd) b (std. error) [t-value] collinearity statistics vif values constant 0.125 (0.080) [1.554] natural capital lsize : own land size 5.3495 (8.0036) -0.007* (0.004) [-1.697 1.330 human capital fedu : farmer’s level of education 5.59 (4.620) -0.011* (0.006) [-1.741] 1.137 fptpn : farmer’s level of participation in livestock rearing activities 1.60 (1.826) 0.043*** (0.015) [2.797] 1.061 physical capital hsize : herd size 5.61 (4.538) 0.019*** (0.006) [2.995] 1.109 financial capital icrop : the total (gross) annual income derived from crops 1.2003 (2.0342) 0.224*** (0.015) [15.334] 1.211 inonf : the total (gross) annual income derived from nonfarm sources 0.6407 (0.8075) 0.116*** (0.036) [3.242] 1.149 management mgtc : no. of managerial constraints 1.22 (0.761) -0.009ns (0.038) [-0.237] 1.138 dependent variable ilstock: the total (gross) annual income derived from livestock 0.5353 (0.6809) model diagnostics f-value 42.105*** r square 0.465 adjusted r square 0.454 std. error of the estimate 0.5031 durbin watson 1.594 note: standard error is written in ( ) parenthesis and t-stats value is written in [ ] brackets. *significance at 10% level, **significance at 5% level, and ***significance at 1% level the second sub-category in human capital is livestock farmer's level of participation (fptpn) in a list of seven livestock farming-related activities. this attribute of human capital was included to investigate to which extent and on which pattern the human labor contributed by a livestock farmer translates into livestock income as we can see from table 2, this aspect of human capital was also found highly significant (at p-value < 1 %). a positive sign of the coefficient states that a unit increase in the farmer's participation in livestock rearing activities would raise the income earned from livestock by 0.043 units. this finding could be associated with the fact that in the rural context of punjab, most farmers are illiterate, resource poor, have limited livelihood options, and have small landholdings. hence, by self-employing and using family labor in livestock or crop farming, they heavily rely on income earned from livestock or crop. in this way, maximum efforts are put by the small and resource deficient farmers to capitalize the limited available labor resources into farm income. our findings regarding qualitative and quantitative aspects of human capital are in line with findings of the study conducted in sudan by (s. ibrahim, 2013), which concluded that more educated farmers were earning less income from livestock farming as compared to the illiterate and less educated farmers. and in addition to this, the households with more available family laborers were earning more income from livestock and vice versa. physical capital, that is, herd size (hsize), was positively associated with the livestock income. the variable's coefficient was highly significant at a 1% level of agbioforum, 21(3), 2019 | 20 ahmad, nawaz and bhatti. — livelihood assets and livestock income significance, stating that a unit increase in the number of livestock animals would raise a farmer's income earned from livestock by 0.019 units. having a large herd size implies more income-generating livestock farming enterprises by generating more livestock products. more revenue earned through keeping large herd size may also be attributed to the economies of scale in livestock farming (derib, 2010; ishaq et al., 2007). also, in the livestock producing communities of north-west province of south africa, herd size (number of cattle) was found to be having a highly significant and positive impact on the livestock income (mabe, antwi, & oladele, 2010). for financial capital, the income earned from livestock responded positively to each of the income earned from crop farming (icrop) and the income earned from nonfarm sources (inonf). the coefficients of the variables were highly significant (p-value < 1%). positive signs of both of the coefficient’s state that a unit increase in the farmer's annual income earned from crops and a unit increase in the farmer's annual income earned from nonfarm sources would raise the income earned from livestock by 0.224 units and 0.116 units, respectively. these findings could be interpreted in how the revenuegenerating ability of livestock farming could be supplemented through crop farming and earnings from nonfarm sources. income earned from crops and nonfarm enterprises may broaden a farmer's financial base, hence enabling him to bear the expenditures regarding the proper nutrition, health, breeding, and overall management requirements of livestock. that ultimately turns into an increase in the annual income earned from livestock enterprise. in a study a. m. ibrahim et al. (2013) conducted in sudan, it was found that compared to those farmers who had no earnings from off-farm sources, the farmers also earned income from off-farm sources were getting more income from livestock farming. entrepreneurial abilities or management is the act or art of running and controlling a business or a similar type of organization. in our study, this factor entails the number of reported managerial constraints faced by a farmer while keeping livestock. this variable did not show significance with the dependent variable. this is cross sectional study, so there is important to check multicollinearity among the exogenous indicators. vif values have confirmed that there does not exits the problem of multicollinearity. at the end of table 2, the diagnostics, r-square value indicates proportion or percentage of the total variation in the dependent variable explained jointly by all the explanatory variables included in the regression model. its value is almost 46%, so the variation in the annual income earned through livestock farming is brought about by the variables (regressors) used in the regression model. the adjusted r-square value is quite good. f-value indicates the overall significance of the model. and lastly, the durbin-watson value is quite significant. hence, overall the model is a good fit. 4. conclusion in developing economies, the income-generating ability of livestock enterprise could be raised through optimal utilization of available resources and by enhancing livestock herders' skills in livestock production and management. the current study is just a farm or household level analysis regarding the response pattern of income earned from livestock to the livelihood assets available at the farm level to the herders. the livestock sector's profitability could be raised by identifying the contributing factors at micro and macro levels. the enhanced productivity of this sector would directly contribute to poverty alleviation, national food security, improved health and nutrition, risk minimization in agriculture, socioeconomic uplift of the farming communities, and overall economic growth. the study proposes that the illiterate and resourcedeficient livestock herders of mixed farming punjab can earn more income from livestock through proper employment and utilization of their natural, human, physical, and financial capitals. the study also suggests that through livelihood diversification, the income generating ability of a livestock farmer could be raised. income earned from crops and nonfarm sources may enable a livestock herder to increment the annual income earned from livestock enterprise. the study has exhibited the one-sided relationship among income earned through livestock-, through crop-, and nonfarming in the rural milieu of punjab. it further invites an investigation into the existence of complementarity, tradeoffs, and synergistic relationships among livestock-, crop, and non-farming in detail. further sustainable agriculture and livestock development government and regulatory authorities need to expand and improve the livestock production industry. conflict of interest: the authors declare that there is no conflict of interest regarding the publication of this article. references ahmad, t., raza, k., & saif, a. 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(2009). minding the stock: bringing public policy to bear on livestock sector development. report no 44010-glb. retrieved from agbioforum, 23(2): 135-142. ©2021 agbioforum the determinants of persistence poverty: case of agricultural households in thailand mattayaphutron s suchira mattayaphutron, lecturer, department of agricultural extension and communication, faculty of agriculture at kamphaeng saen, kasetsart university, kamphaeng saen campus, nakhon pathom, thailand email: suchira.m@ku.th mahamat n nayaeming mahamat, phd, lecturer, faculty of humanities and social sciences, prince of songkla university, thailand email: nayeming.m@psu.ac.th the poverty incidence of households in thailand is an enduring problem with efforts to resolve this issue culminating in the first edition of the national economic and social development plan. at present, the poverty rate at the household level in the country has decreased since 2000-2013, but the agricultural sector remains uniquely problematic. in 2011, the proportion of poor households in agriculture reached 21.56 percent, more than 281,000 households. therefore, this study aims to identify factors that determine the extent to which agricultural households are experiencing poverty by using logistic regression analysis while using data form household socioeconomic survey conducted by nso for the year 2013. the study found that agricultural households mostly have men as head of household. most of them are between 51-60 years of age and have only received formal education till the primary level. there are 3-4 members per household and there are 1-2 people that do not work in rice cultivation as their main job. the factors that affect the chances of poverty for agricultural households depend on the dependency ratio and they are many members are working in the agricultural sector that makes agricultural households are a chance of experiencing increasing poverty. the level of education of the household head can help to reduce the chances of poverty, that is, at least a diploma and/or bachelor degree. therefore, when establishing guidelines to tackle the poverty of agricultural households in thailand, the government should increase educational for to members in agricultural households and support agricultural training for technical knowledge to the head of household in order to enhance agricultural production. key words: poverty, agricultural households, logistic regression analysis 1. introduction the poverty incidence of households in thailand is an enduring problem with efforts to resolve this issue culminating in the first edition of the national economic and social development plan. at present, the poverty rate at the household level in the country has decreased since 2000-2013, but the agricultural sector remains uniquely problematic. in 2011, the proportion of poor households in agriculture reached 21.56 percent, more than 281,000 households. therefore, this study aims to identify factors that determine the extent to which agricultural households are experiencing poverty by using logistic regression analysis while using data form household socioeconomic survey conducted by nso for the year 2013. the study found that agricultural households mostly have men as head of household. most of them are between 5160 years of age and have only received formal education till the primary level. there are 3-4 members per household and there are 1-2 people that do not work in rice cultivation as their main job. the factors that affect the chances of poverty for agricultural households depend on the dependency ratio and they are many members are working in the agricultural sector that makes agricultural households are a chance of experiencing increasing poverty. the level of education of the household head can help to reduce the chances of poverty, that is, at least a diploma and/or bachelor degree. therefore, when establishing guidelines to tackle the poverty of agricultural households in thailand, the government should increase educational for to members in agricultural households and support agricultural training for technical knowledge to the head of household in order to enhance agricultural production. table 1 urban poverty rate (%) table 2 rural poverty rate (%) region 2012 2013 region 2012 2013 bangkok 1.91 1.06 bangkok central 4.74 3.95 central 8.92 6.72 north 15.71 15.21 north 18.43 17.77 northeast 19.13 16.39 northeast 20.10 17.88 south 9.02 7.98 south 15.70 12.67 total 8.80 7.70 total 15.96 13.89 source: socio-economic survey (ses) by national statistical office, compiled by (wuttisorn, 2014) according to (wuttisorn, 2014) it was found that in 2011, the poverty rate in the non-agricultural sector will increase mailto:suchira.m@ku.th mailto:nayeming.m@psu.ac.th agbioforum, 23(2), 2021 | 136 mattayaphutron and mahamat. — the determinants of persistence poverty: case of agricultural households in thailand twice. the poor population accounted for 21.56 per cent of in the entire agricultural sector while the proportion of non-agricultural poor is only 10.73 per cent of total nonagricultural population. this partly reflects how professional structures of the population are engaged in primary agriculture. however, the average of income from primary agricultural occupations is still lower than others. income from agriculture is often uneven, depending on the climate and in addition to this, some farmers also have no land of their own and therefore, must hire others to do to farming which amounted to more than 1.2 million households. in this amount is more than 281,000 poor households (representing a total of more than 1.1 million poor people) as the structural factors that cause poverty in the agricultural sector continue to endure. the government has undertaken several efforts to tackle the poverty problem. the current study determines and analyses the poverty incidence of people in thailand to serve as a guideline for policymakers to tackle poverty in a timely and effective manner. the review of research related to factors that determine poverty in the country that has been undertaken on the basis of information provided by the office of the national economic and social development board: (board, 2006), and the office of agricultural economics: (economics, 2000), (kaewmee, 2013) show how to calculate this using head-count index, foster-greer-thorbecke (fgt index) and poverty gap index, which is the study of the three research results in a similar manner, the poverty in the country has decreased. the northeast was the region with the highest poverty incidence. most people in thailand live in rural areas and are farmers. in addition, it is a study of poverty incidence in thailand using multiple regressions, with each case being different in terms of the data used and the time period analyzed. the study that makes a difference is (board, 2006) found that the proportion of dependency ratio, age of household’s head and land holdings, all these factors affect poverty incidence and it was found that the proportion of dependency ratio and age of household’s head is higher cause increasing poverty. the total area of holdings increased can help to reduce poverty. consistent with the research of (cherdchuchai et al., 2006) and m (1985), it was found that an increase in the size of the farm and landholding can reduce poverty also. the study of (kaewmee, 2013) found that the educational level of the head of household, debt, dependency ratio of the household and farm size are factors that affect poverty. the results show that the level of education of household head and an increase in farm size can help reduce poverty, while the debt and dependency ratio of the household with more dependents will increase poverty. there is, however, some work-study foreign contexts in terms of factors that affect poverty incidence, such as okurut (2002) the study determinants of poverty in each region of uganda found that size of households, years of education of household head and migration status are factors that cause poverty by found that the year of education of household head and migration status can reduce poverty while the size of higher household leads to a rise in poverty. the study of riyana miranti et al. (2005) analyzed poverty in indonesia and found that income inequality that accounts for each region's poverty in indonesia to increase. consistent with the study of r miranti (2007), it was found that inequality of income and higher labor migrations also make poverty in each region of indonesia increased. however, natural resources, open country, human capital, infrastructure and the increase of government subsidized aid can lead to poverty reduction. while, jan (2008) conducted a study of the determinants of poverty of the agricultural sector in pakistan, it was found that infrastructure, the education year of household head and more irrigated area lead to poverty reduction but the age of the household head will actually cause poverty to increase in the country. these results are similar to those reported by lerong (2014) in china. in addition, the cases are using logistic regression technique to analyze the factors that affect the chances of agricultural households experiencing poverty in the country.(cherdchuchai et al., 2006) found that increasing size of land holdings for farming will lead to a reduction in poverty for households but increasing size of the household will lead to more poverty for that household. shiferaw (2004), who studied poverty in rural households of thailand by using logit model analysis, the result shows that landlessness is a major poverty determinant among the rural poor followed by household size. therefore, from the above research, it is shown that poverty in thailand is a serious issue that must be explored and studied at length using multiple regression analysis and logistic regression techniques to identify the factors that affect poverty at the household level in thailand. for this article, we have chosen only households in the agricultural sector because they experience the most severe poverty. the objective of the study is to analyze the factors which affect the likelihood of agricultural households experiencing poverty. the results of this study will be useful for guiding policymakers as to how help reduce poverty in agricultural households. 2. research objectives the objective of the study is to analyze the factors which affect the likelihood of agricultural households experiencing poverty. 3. research methodology 3.1 data description data used for the analysis of the determinants of poverty in agricultural households of thailand is sourced from the household socio-economic survey conducted by the national statistical office for the year 2013. the survey covers all regions with a total sample size of 42,738 households, selecting only 15,305 agricultural households. data was also collected from research reports and articles from the office of agricultural economics, office of the agbioforum, 23(2), 2021 | 137 mattayaphutron and mahamat. — the determinants of persistence poverty: case of agricultural households in thailand national economic and social development board, national statistical office, and other relevant researches. 3.2 quantitative analysis in this study, we use logistic regression analysis to analyze the relationship between factors that cause agricultural households to experience poverty as summarized in the model below. logit regression, which is also called logistic regression, is one of the non-linear regression models specifically designed for a binary dependent variable whose outcome in a single trial can be one of the two possibilities only i.e., 0 or 1. let y = poor income, when we observe the income of the household, it is either poor income or non-poor income. therefore, the method implies assigning the value of 1 if the household income is below the poverty line and 0 otherwise. the model can be written as equation (1) 𝑌𝑖 = 𝛽0 + 𝛽𝑖𝑋𝑖 + 𝑢𝑖𝑡 (1) for a given value of xi, let the probability that yi equals 1 and the probability of yi = 0 be denoted by 𝑃𝑟(𝑌𝑖 = 1) = 𝑃𝑖 and 𝑃𝑟(𝑌𝑖 = 0) = 1 − 𝑃𝑖 according to gujarati (2003), pi is the probability of yi taking a value of 1 and (1pi) is the probability of taking a value of 0 then the odd of yi having a value equal to 1 is denoted by equation (2) ln ( 𝑃𝑖 1−𝑃𝑖 ) = 𝛽0 + 𝛽𝑖𝑋𝑖 + 𝑢𝑖𝑡 (2) the natural log of this odds ratio is called the logit, and therefore, the model of equation (2) is called the logit model. the model tells us that the log of the odds ratio is a linear function of explanatory variables where the 𝛽𝑖 gives the change in the log of the odds ratio per unit change in the explanatory variable. however, this logit does not give the probabilities directly. logit coefficients correspond to the 𝛽𝑖coefficients in ordinary least squares (ols) regression. they are used to estimate (predict) the log odds that the dependent equals 1 (binomial logistic regression). the interpretation of the logit regression is as follows. holding all other things constant, if xi (the explanatory variable) goes up by a unit, on the average, the logit, or log of the odds ratio in favor of yi taking a value of 1 goes up approximately by 𝛽𝑖 units. therefore, the higher the value of the logit, the higher the odds in favor of yi = 1 and the higher the probability would be. however, it bears to ntoe that 𝛽𝑖 is neither a change in probability nor the marginal effect of the explanatory variable. to compute the actual probabilities, according to (gujarati, 2003), we need to calculate the logit values by putting the values of explanatory variables (𝛽𝑖) for each observation. let, ln ( 𝑃𝑖 1−𝑃𝑖 ) = 𝑧𝑖 (3) then taking the antilog of equation (3) gives us equation (4) 𝑃𝑖 1−𝑃𝑖 = 𝑒𝑧𝑖 (4) then equation (5) would give 𝑃𝑖 = 𝑒𝑧𝑖 1+𝑒𝑧𝑖 (5) the next step is taking the partial derivative of the logit (equation 2) with respect to each explanatory variable, which is denoted by equation (6) 𝜕𝑃 𝜕𝑋𝑖 = 𝑃(𝑃 − 1)𝛽𝑖 (6) equation (6) gives us the marginal effect or the partial change of p from marginal change in explanatory variable. a logit model can be used to estimate the determinants of poverty. this logit model will be defined on the basis of income (pvl) where it is 1 if the household is poor and when household income is below the poverty line (8,933 baht per household (calculated by nesdb (2014)), and zero otherwise. the variables consist of 1) dependent variable is dummy variable (pvl = 1 for poor household, pvl = 0 for otherwise) 2) independent variables are obtained from literature reviews and research papers that mentioned above. in this study, we define 30 independent variables and assumptions on correlations of the factors that cause agricultural households are likely to suffer from poverty by considering the relationship in the same direction that show a positive sign and relationships in the opposite direction from negative sign from expected sign column. (see table 3). 4. results in this study, we use data from household socioeconomic survey by nso in 2013 to analyze the factors that affect the chances of agricultural household’s experiencing in thailand by using logistic regression analysis. it is found that from 15,305 agricultural households which are households with a monthly income less than poverty line; 3,613 households (24%) were identified as poor households while households with a monthly income of more than poverty line or non-poor household counted were calculated to be 11,692 households (76%). agbioforum, 23(2), 2021 | 138 mattayaphutron and mahamat. — the determinants of persistence poverty: case of agricultural households in thailand table 3: explanatory of variables variable name variable definition expected sign reg region + area administrative area + nwork works of members mhouse number of household members + debhm debt repay averagely per month (baht) hsex sex of household head ? hage age of household head ? education level of household head edupri primary education edulowsec lower secondary education eduupsec upper secondary education edupostsec post-secondary education edubc bachelor degree dependency ratio nmf15 number of member age < 15 years + nmf60 number of member age ≥ 60 years + nrecfgvt number of member receiving other government fund for farmer nvillfund number of member borrowing from village fund scheme + type of farm ? tcrop crop production tanimal animal production tmix mixed farming tsupport support activities to agriculture and post-harvest crop activities tforest forestry and logging tfish fishing and aquaculture nworkf number of household member worked in farm + farmcost farm operating cost (baht) othassis assistance from other persons outside household (baht) gvtassis social pensions for the elderly and disability (baht) assetv value of household assets (baht) debtbus loan for business (baht) debtf loan for farm business (baht) land area of land used in agriculture (rai) (owner + land rented from other persons + public land and others) the studies of agricultural households in thailand in 2013 found that the average monthly total income per household was 21,449 baht per household which has of 3-4 individual members per household and the number of laborers that do not make income is 1-2 people per household. almost all household heads are men, accounting for 55%, and their age lies between 51-60 years, accounted for 32%. household heads older than 60 years accounted for 30% and 38% belonged to the age group 15-50 years. the study level of agricultural household heads showed that 82.12% report to have received only primary education level. (see table 4-5) table 4: age of household head age (years) frequency percentage (%) 15 – 30 276 2 31 – 40 1,535 10 41 50 3,904 26 51 60 4,862 32 age ≥ 60 years 4,728 30 total 15,305 100 source: calculated by author in addition, in terms of agricultural household activities, it was found that crop production accounted for 88.83%, followed by the support activities to agriculture and postharvest crop activities which accounted for 4.45%, and the rest was reported other activity, respectively, as shown in table 6. in conclusion, the general characteristics agricultural households in thailand are; in most households, men assume the position or role of leader, are age between 5160 years), and their level of education is only primary level. the size for membership in their households is around 3-4 people but 1-2 people do not work for income or remuneration. an overview of agricultural activities showed that crop cultivation is the most activity for make income, especially rice cultivation. table 5: education level of household head agbioforum, 23(2), 2021 | 139 mattayaphutron and mahamat. — the determinants of persistence poverty: case of agricultural households in thailand education level frequency percentage (%) primary education 11,816 82.12 lower secondary education 1,052 7.31 upper secondary education 971 6.75 post-secondary education 177 1.23 bachelor degree 318 2.21 master degree 49 0.34 doctoral degree 1 0.01 other education 4 0.03 total 14,388 100 note: missing 917 observations source: calculated by author table 6: type of farm type of farm frequency percentage (%) crop production 13,596 88.83 growing of rice 8,299 61.04 growing of cereals (except rice), sugar cane, tobacco, vegetables and other non-perennial crops 2,113 15.54 growing of perennial crops 3,158 23.23 plant propagation 26 0.19 animal production 485 3.17 mixed farming 195 1.27 support activities to agriculture and post-harvest crop activities 681 4.45 forestry and logging 71 0.46 fishing and aquaculture 273 1.78 hunting and trapping 4 0.03 total 15,305 100 source: calculated by author the analysis of the factors that affect the chances that agricultural households are experiencing poverty found that the relation between independent variables and the dependent variable. both positive and negative factors with respect to poverty are studied with factors that cause the increasing poverty (positive sign of coefficients) as well as factors causing a reduction in poverty in agricultural households (negative sign of coefficients). in light of its aims, this study is divided into two topics as follows (see table 7). 1) main factors that reduce agricultural households experiencing poverty. the results present an analysis of the significant factors that make agricultural households more or less likely to experienced poverty reduction in three main parts and using 14 variables. factors on characteristics of households consist of works of members (nwork) and number of household members (mhouse). the results show that the number of workers earning in their households (nwork) is a factor that affects the likelihood of agricultural households experiencing poverty reduction. if a household member who can work for more earning does so, the household will have chance to experience poverty drop by 16.15 %. in terms of analysis of household size (mhouse), it is found that if family members increase, the household will have a chance to experience poverty drop by 10.45 %. due to working age of household members, it may be able to find additional income for the household, resulting in poverty reduction in agricultural households; this contradicts the study of okurut (2002) which found that a large household size leads households in uganda to suffer from poverty increase. factors on social that is education level of household head, consists of 5 levels of education: primary education (edupri), lower secondary education (edulowsec), upper secondary education (eduupsec), post-secondary education (edupostsec) and bachelor degree (edubc). the 5 levels of education for the household head are other factors that affect the likelihood of agricultural households experiencing poverty reduction (significant 0.000). when considering the details of each level of education, it was found that education in post-secondary education level has the highest of marginal effects to 44.63, which means that if the head of household holds a diploma degree, it will have a chance to see poverty drop by 44.63%. for undergraduate education, level of education has marginal effects equal to 44.03 which means that if the head of household has been studied up to undergraduate education level, it has a chance to experience poverty drop by 44.03%. a higher level of education will provide the head of the household more access to knowledge and technologies that will help make agricultural production processes more efficient. the study found that diploma level and undergraduate level are major factor in helping reduce poverty in agricultural households. considering their marginal effects are higher than the marginal effects for other independent variables in the logit model (see table 7). as such, the results here are similar to those reported by (kaewmee, 2013) who found that a higher level of education of household head can help reduce poverty in thailand, as pointed out by the study of okurut (2002) in uganda and jan (2008) in pakistan. agbioforum, 23(2), 2021 | 140 mattayaphutron and mahamat. — the determinants of persistence poverty: case of agricultural households in thailand table 7: logit analysis of determinants of poverty in agricultural households variable coefficients mean z-value sig marginal effects (%) intercept 1.747e+00 1.578 31.50 reg 8.789e-02 3.255 ** 1.58 area 2.480e-03 0.056 0.04 nwork -8.955e-01 2.25 -14.771 *** -16.15 mhouse -5.795e-01 3.47 -15.267 *** -10.45 debhm -3.842e-05 3,850 -5.459 *** 0.00 hsex 3.022e-03 0.062 0.05 hage -2.204e-03 54.97 -0.853 -0.04 edupri -7.026e-01 -8.558 *** -12.67 edulowsec -1.414e+00 -11.128 *** -25.51 eduupsec -1.622e+00 -11.770 *** -29.26 edupostsec -2.475e+00 -6.730 *** -44.63 edubc -2.441e+00 -7.948 *** -44.03 nmf15 3.469e-01 0.73 6.988 *** 6.26 nmf60 2.379e-01 0.58 4.729 *** 4.29 nrecfgvt 1.518e-01 0.09 1.824 . 2.74 nvillfund 7.003e-03 0.46 0.156 0.13 tcrop 6.059e-01 0.560 10.93 tanimal 5.328e-01 0.490 9.61 tmix 3.233e-01 0.293 5.83 tsupport 6.908e-01 0.637 12.46 tforest 9.127e-01 0.814 16.46 tfish -2.885e-01 -0.263 -5.20 nworkf 7.754e-01 1.96 15.431 *** 13.98 farmcost -3.478e-06 69,494 -6.079 *** 0.00 othassis -1.528e-05 17,431 -15.276 *** 0.00 gvtassis -1.236e-05 5,065 -2.779 ** 0.00 assetv -4.547e-07 1,000,622 -12.125 *** 0.00 debtbus -2.451e-06 10,319 -2.587 ** 0.00 debtf 1.216e-07 48,300 0.368 0.00 land -2.582e-02 16.76 -9.351 *** -0.47 total observation 15,305 signif. codes: 0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1 source: calculated by author economic factors consist of debt repay (debhm), value of household assets (assetv), farm operating cost (farmcost), assistance from other persons outside household (othassis), social pensions for the elderly and disability (gvtassis), loan for business (debtbus) and area of land used in agriculture (land). the study found that the repayment of debt (debhm) is a factor that can reduce the chances of experiencing poverty in agricultural households, if the household has to provide more debt opportunity the more debt is likely to make poverty reduction. as well as the study of assets of agricultural households (assetv) such as car engines, tractors, agricultural equipment, etc. it can be seen that if a household has its own agricultural property, there is an increased chance it can reduce poverty levels within the households. this is because agricultural assets are the capital factors affecting agricultural producers and potentially leading to an increase the performance of farmers. the results of farm costs is another factor that can reduce the chance of experiencing poverty in the agricultural households. due to the expansion of farm production, farm costs may be higher but they can lead to an increase in production efficiency, resulting in increased productivity, quality and sales revenue. therefore, agricultural households which report to have higher farm costs have a higher chance to reduce poverty. to get help from someone outside the household (othassis) is also a factor that determines to what extent agricultural households because most members working in thailand have an age around 15-40 years in agricultural household are the people who immigrant coming to work in the industry field and send money back to help support their families. therefore, the other members in agricultural household will be elderly (age ≥ 60 years) up to 30% (see table 4), who often will be the head of the household. as a result, agricultural household that have received allowance for the elderly and disabled (gvtassis), can contributes to poverty reduction within those agricultural household. in addition, the study also found that an agricultural household can borrow money from the bank to expand business investment (debtbus) which also reduce poverty levels withing agricultural households. in terms of the size of agricultural land (land), thestudy found that if agricultural household’s land farming has increased, the chances of poverty in agricultural household can be reduced. as such, the results here are similar to those reported by (board, 2006), (cherdchuchai et al., 2006), and (kaewmee, 2013) found that an increasing in farm size can help reduce poverty within agricultural households in thailand. 2) main factors that cause agricultural households are likely to experience increased poverty. agbioforum, 23(2), 2021 | 141 mattayaphutron and mahamat. — the determinants of persistence poverty: case of agricultural households in thailand the study explores the role and impact of key factors that increase chances of experiencing poverty in agricultural households, consisting of five variables: region (reg), number of members age <15 years (nmf15), number of members age ≥ 60 years (nmf60), number of household member worked in the farm (nworkf) and number of members receiving other government funding for farmers (nrecfgvt). regional characteristic (reg) is the factor that affects an increase in the chances of experiencing poverty in an agricultural household. this is attributable to the fact that agricultural cultivation in thailand depends on natural resources. each region of the area is suitable for different types of agricultural cultivation. therefore, if the located area is not suitable for cultivation, it is likely to cause households’ poverty to rise to 1.58%. the dependency ratio of agricultural households who are unable to make money for the household; considering the number of children younger than 15 years (nmf15) and the number of elderly people aged over 60 years (nmf60), if the household’s dependency ratio is high, it will increase the chances of experiencing poverty in the agricultural household. if a household has a higher number of children younger than 15 years, it is likely to experience poverty rising to 6.26%. moreover, if households have a higher number of elderly people aged over 60 years, then too, the household is likely to experience poverty rise to 4.29%. as such, the results here are similar to those reported by (board, 2006). the members of household working in agriculture (nworkf) is a factor that increased the chances of experiencing poverty within agricultural household. this is because the wage of employment in agriculture is usually lower when compared to outside agriculture and in most cases, labor is provided the members in their households which means it the labour does not earn any wage as compensation. therefore, when household members who are employed in agricultural activities are increased, the chances of experiencing poverty in agricultural households rise to 13.98%. moreover, the results are in line with the assumptions made by the ministry of agriculture, that government’s agriculture loan scheme will foster agriculture growth and will help in reducing poverty. the analysis in 2013 showed that if the number of households has members who have joined government projects to help farmers is higher, it will increase the chances of experiencing poverty in agricultural households to 2.74% (significant 0.05). this may be attributable to the fact policies formulated to help farmers are inefficient, focus on providing loans to the agricultural sector but do not focus on the development of the technological capacity to improve productivity in the long run and in a sustainable manner. therefore, agricultural production still largely depends on climaterelated factors as a result of which, productivity is difficult to predict. therefore, the increased loan for their households to invest in farm can be a factor that can increase the chances or likelihood of experiencing poverty in agricultural households. 5. conclusions and discussions the poverty rate of households in thailand declined steadily since 2000-2013 but when considering the situation of poor households, it was found that the majority of households experiencing poverty were associated with the agricultural sector 21.56%, that is, more than 281,000 households. in light of this, this study explored the causal factors affecting agricultural households’ chances of experiencing poverty. study results show that the general characteristics of the agricultural households are that the leader for their household is almost always a male member of their family and belongs to the age bracket of 51-60 years. most of them have only primary education levels. the size of the households is 3-4 people with 1-2 people who cannot work for make earning. many agricultural households report having rice cultivation as their main job. the main factor affecting the poverty rate in agricultural households found that the dependency ratio in the agricultural household who are unable to make money for the household is very high, making agricultural households more susceptible to increased poverty. as well as the household members are employed in agriculture are numerous. this causes an increase in households experiencing poverty because wages are lower than in other occupations. the level of education of the household head also affects poverty in the agricultural household by considering how marginal effects were higher than other factors especially education in diploma and bachelor’s degree. therefore, the educational background of the head of household with at least diploma level or higher proven to be helpful in overcoming the poverty situation currently experienced. finally, in establishing guidelines to tackle the poverty rate/level in agricultural households in thailand. the results of this study suggest that increased educational opportunities to the members in agricultural household can be particularly helpful in countering or mitigating the effects of poverty at the household level. the government should adopt a policy to support the education children and should ensure availability of agricultural trainings and technical knowledge to the head of household in order to enhance sector productivity. references cherdchuchai, s., & otsuka, k. (2006). rural income dynamics and poverty reduction in thai villages from 1987 to 2004. agricultural economics, 35, 409-423. board, n. e. a. s. d. (2006). poverty situation in thailand from 1988 to 2004. nesdb, bangko. cherdchuchai, s., & otsuka, k. (2006). rural income dynamics and poverty reduction in thai villages from 1987 to 2004. agricultural economics, 35(s3), 409-423. agbioforum, 23(2), 2021 | 142 mattayaphutron and mahamat. — the determinants of persistence poverty: case of agricultural households in thailand doi:https://doi.org/10.1111/j.15740862.2006.00187.x economics, o. o. a. (2000). statistics report of agricultural sector in thailand: year 2000. oae, bangkok. jan, d., a. chishti and p. eberle. (2008). annual conference, an analysis of major determinants of poverty in agricultural sector in pakistan, july 27-29. kaewmee, s., & sirisupluxana, p. (2013). factors affecting poverty incidence of thai agricultural households. 14(1), 17-29. retrieved from https://so01.tcithaijo.org/index.php/aej/article/view/10528 lerong, y. (2014). growth, inequality and poverty reduction in rural china. international journal of agricultural extension, 49-56. retrieved from https://journals.esciencepress.net/index.php/ ijae/article/view/649 m, k. (1985). agricultural development, rural, poverty, and income distribution in thailand. the developing economies, 23, 4. miranti, r. (2007). the determinants of regional poverty indonesia:1984-2002. ph.d. dissertation, the australian national university. miranti, r., & resosudarmo, b. p. (2005). understanding regional poverty in indonesia: is poverty worse in the east than in the west. australasian journal of regional studies, the, 11(2), 141-154. retrieved from https://search.informit.org/doi/abs/10.3316/i nformit.058253335957288# okurut, f., j. odwee and a. adebua. (2002). determinants of regional poverty in uganda. aerc research paper 122. office of agricultural economics. 2000. statistics report of agricultural sector in thailand: year 2000. shiferaw, t. r. (2004). impact of growth on income inequality and poverty in rural households of thailand. kasetsart university, wuttisorn, p. (2014). rural-urban poverty and inequality in thailand. the international policy workshop on rural-urban poverty linkages in zhejiang, people’s republic of china. 2-4. https://doi.org/10.1111/j.1574-0862.2006.00187.x https://doi.org/10.1111/j.1574-0862.2006.00187.x https://so01.tci-thaijo.org/index.php/aej/article/view/10528 https://so01.tci-thaijo.org/index.php/aej/article/view/10528 https://journals.esciencepress.net/index.php/ijae/article/view/649 https://journals.esciencepress.net/index.php/ijae/article/view/649 https://search.informit.org/doi/abs/10.3316/informit.058253335957288 https://search.informit.org/doi/abs/10.3316/informit.058253335957288 agbioforum, 24(1): 161-169. ©2022 agbioforum determinants for farmers' decisions to participate in developing agricultural tourism activities. an empirical study of iraq's economy amenah muayad abdullah college of education/ college of education/ al-farahidi university /baghdad/ iraq email: amena.m.abdullah@uoalfarahidi.edu.iq mustafa obay saeed department of law, alnoor university college, bartella, iraq email: mustafa.obay@alnoor.edu.iq zainab abed almoussawi college of islamic science /ahl al bayt university /kerbala / iraq email: zainabalmoussawiii@gmail.com hassan taher braiber accounting department, al-mustaqbal university college, babylon, iraq email: hassan.taher@mustaqbal-college.edu.iq ihsan ali mubarak the university of mashreq/ baghdad/ iraq email: ihsan.ali@uom.edu.iq jenan ali hammoode accounting and economics/ al-esraa university college, baghdad, iraq email: jenan@esraa.edu.iq as he cultivates agricultural land, the farmer plays a crucial role in agricultural tourism. farmers with less innovativeness do not contribute to the nation's economic prosperity. agriculture tourism in iraq is not as advanced as in affluent countries. this study investigates the factors influencing farmers' participation in developing agricultural tourism in iraq. this study is based on a previously unexplored gap in the literature because no previous research has investigated this gap. this study included secondary data and a likert scale questionnaire for empirical proof. participants in this study were iraqi farmers. in this regard, the findings of this study are an addition to the literature and the body of knowledge since they reveal that the factors of farmers' actions have a substantial impact on agriculture tourism in iraq. the study also has significant practical implications for enhancing iraq's tourism industry for economic growth. moreover, the theoretical ramifications of this study have contributed to the advancement of knowledge. the future directions of this research are essential for future agricultural tourism research. key words: educated farmers, public access to farms, agricultural tourism, tourism economy, tourism marketing. 1. introduction the emergence of agricultural tourism is attributable to industrialized nations working in farming to offer employees a unique tourism experience (pillay et al., 2013; wu, 2018). agricultural tourism is ideal in countries with agricultural fields that provide people with tourist attractions (adom et al., 2021). agriculture tourism plays a significant part in every nation's economic status as it helps improve and stimulate the economy (adom et al., 2021; tchouamou njoya et al., 2020; timms, 2006). due to their passion, agriculture tourism now attracts tourists. indonesia and malaysia are regarded as linchpins for agricultural tourism to enhance the agriculture industry (torres et al., 2004; uduji et al., 2021). the tourism sector is enhanced by greater government facilitation (diclemente et al., 2020). the governments attempting to strengthen the agriculture sector are implementing new policies for the growth of the agriculture sector using the latest and advanced technology (miller et al., 2012; testa et al., 2019). the equitable application of technology boosts agriculture sector productivity and contributes to agricultural tourism (fleischer et al., 2005). educator farmers are paradigm shifters in agricultural tourism (christian, 2012; usman et al., 2021). the focus of educated farmers is not only on profiting from the output but also on working more efficiently (zhao et al., 2020). the governments of the developed nations train their farmers to promote agricultural tourism (poulianiti et al., 2019). indeed, tourism marketing plays a significant part in the tourism industry (jana et al., 2022). tourism marketing is utilized to give the public more accurate information to entice them to agricultural sector tourism (anderson, 2018; torres, 2003). access to the internet by farmers is also acceptable for the promotion of agricultural products (ráthonyi, 2013; xu et al., 2021). to attract clients, rational farmers promote their agricultural products on the internet (fleischer et al., 2005). the emergence of agricultural tourism is because new agricultural products stimulate the economy of any nation (miller et al., 2012). the less emphasis placed on agricultural tourism, the lower the nation's economic growth productivity (testa et al., 2019). numerous works have examined agricultural tourism in modern nations and its economic benefits (christian, 2012; poulianiti et al., 2019; usman et al., 2021; zhao et al., 2020). similarly, there is research on the economic effects of the promotion of sustainable tourism (anderson, 2018; torres, 2003; xu et al., 2021). indeed, the existing literature on tourism in the agricultural sector also improves the performance of tourism for economic growth. wu (2018) examined agricultural tourism from a sustainable perspective. wut et al. (2022) noted that implementing good government policies can promote agricultural tourism. nugroho et al. (2022) analyzed the contribution of agricultural tourism to sustainable economic growth in indonesia and thailand. however, no mailto:amena.m.abdullah@uoalfarahidi.edu.iq mailto:mustafa.obay@alnoor.edu.iq mailto:zainabalmoussawiii@gmail.com mailto:hassan.taher@mustaqbal-college.edu.iq mailto:ihsan.ali@uom.edu.iq mailto:jenan@esraa.edu.iq agbioforum, 24(1), 2022 | 162 abdullah, saeed, almoussawi, braiber, mubarak, and hammoode — determinants for farmers' decisions to participate in developing …. study has examined the role of agricultural tourism from the farmers' perspective. in this regard, the theoretical framework of this study is intended to improve the tourism performance of the agricultural sector based on the decision-making processes of agricultural tourism. therefore, this study aims to determine the factors influencing farmers' participation in developing agricultural tourism in iraq. this study is based on a previously unexplored gap in the literature because no previous research has investigated this gap. in this regard, the findings of this investigation would contribute to both the literature and the body of knowledge about the relationship considered in the study's conceptual framework. this study has examined farmers' education, internet connection, and public access to farms as independent factors. similarly, the mediating variable of this study is tourism marketing, as tourism marketing is vital to the success of every nation. lastly, the dependent variable of this study is agriculture tourism, which would aid in interpreting the empirical findings of this study to enhance tourism in iraq. in addition, the study has practical and theoretical implications for boosting agricultural tourism in iraq's economic development. 2. literature review farmers play a crucial role in promoting tourism (savari et al., 2020). farmers are the actual promoters of agricultural tourism because they produce the items themselves (bhatta et al., 2019). government policies play a crucial role in the agricultural tourism sector because they aim to improve farmers' performance by promoting sustainability in the tourism industry (anang et al., 2019). sustainability in agricultural output is only achievable if the government provides farmers with facilities to enhance their performance (trede et al., 2000). less emphasis is placed on tourism in these industries in agriculturally underdeveloped countries (nurlaela et al., 2021). the economy can expand if educated farmers provide marketrequired goods (fahad et al., 2018). on the other hand, prominent farmers are self-marketers since they promote their products on social media platforms to inform consumers (pan et al., 2021). canada's agriculturists are technologically savvy and are employing new methods to expand their tourism operations (nurlaela et al., 2022). agricultural tourism is affected by the farmer's leadership role in the sector to promote agricultural products in other nations for the benefit of the economy (aubert et al., 2012). h1. educated farmers have an impact on agriculture tourism. modern production demand depends on technology (mwambi et al., 2020). technology is crucial since it is commonly used for information sharing (misaki et al., 2016). farmers that support one other by exchanging information on the internet and other social media platforms are visited by many international tourists interested in their products and services (zhou et al., 2022). tourism in the agriculture sector is rising due to government initiatives, but farmers' promotion of agricultural products is the primary focus of agricultural tourism (sapbamrer et al., 2022). farmers can engage with the farming community and share their experiences due to the information made available through various media platforms (trede et al., 2000). due to the asean agreement, indonesian agricultural goods are now being cultivated in thailand because farmers share information via the internet (trede et al., 2000). similarly, farmers who are conversant with the internet and share knowledge on digital platforms are more productive than their traditional counterparts. internet and other technologies have contributed to an increase in agricultural land output in several nations (pan et al., 2021). more emphasis on technology improvement would emphasize the farmer's ability to make decisions based on shared information (mwambi et al., 2020). h2. farmers' access to the internet has an impact on agriculture tourism. public access to agricultural areas is essential since it helps create cash (camilleri, 2018). small-scale farms in thailand are accessible to the general public at prices that benefit the tourism industry (kayumovich et al., 2019). similarly, in the scandinavian countries, agricultural production is open to the public, and anyone can visit these places to learn about sustainable agriculture (kayumovich et al., 2019). indeed, expanding the agricultural sector can boost economic growth; thus, several nations now welcome international tourists on their land (minazzi, 2015). modern public access to agricultural land is crucial since these activities provide farmers with substantial cash (hays et al., 2013). however, government policy should be integrated with the tourism sector's performance to improve the development of enhanced amenities (pholphirul et al., 2022). undoubtedly, american farms are accessible to the public with an authorized ticket for tourism promotion (hvass et al., 2012). the tourism sector's productivity would increase if the government emphasized the significance of tourism sector performance. public access to agricultural land is a source of word-of-mouth marketing in russia (leung et al., 2013). it is unreasonable for the tourism industry to pay less attention to the welfare of people and their access to farms, as this diminishes farm productivity and generates unfavorable publicity (pholphirul et al., 2022). h3. public access to farms has an impact on tourism marketing. tourism promotion is the best source for producing goods and services (gretzel et al., 2014). due to the expansion of tourist marketing in recent years, the tourism industry's marketing expertise has been increased by its growth (lakmali et al., 2021). people interested in tourism are constantly looking for new tourist opportunities to attain their goals in the tourism industry (pholphirul et al., 2021). indeed, marketing tourist locations is essential since it agbioforum, 24(1), 2022 | 163 abdullah, saeed, almoussawi, braiber, mubarak, and hammoode — determinants for farmers' decisions to participate in developing …. enables countries to expand economically (hays et al., 2013). in addition, the importance of farm tourism can be raised if word-of-mouth marketing is conducted effectively (leung et al., 2013). the indonesian government is innovatively marketing its tourist destination globally to attract tourists (minazzi, 2015). countries with more effective tourism marketing efforts see a more significant influx of foreign tourists seeking agricultural products (kayumovich et al., 2019). h4. tourism marketing has an impact on agriculture tourism. public access to tourist attractions enhances any nation's tourism performance (camilleri, 2018). appropriate development of the tourism industry is only achievable when the marketing of the tourism industry is inventive (kayumovich et al., 2019). creative marketing strategies offer a greater appeal to tourists, resulting in more tourists visiting the marketing destination (leung et al., 2013). on the other side, underdeveloped nations cannot market tourism effectively, which is a significant obstacle to the success of tourism in these nations (pholphirul et al., 2022). the american government promotes tourism by marketing its destinations, especially cultural heritage sites, through commercial partnerships (alghizzawi et al., 2018). similarly, the canadian government is engaged in tourism promotion for agricultural products (camilleri, 2018). tourists are always drawn to marketing initiatives since they were previously unaware of tourist spots (minazzi, 2015). tourism marketing should suitably promote tourism for the sector's optimal growth (hays et al., 2013). agriculture tourism marketing is also necessary because this industry has the potential to attract tourists and contribute to the economy (lakmali et al., 2021). figure 1 illustrates the conceptual framework for this investigation. h5. tourism marketing mediates the relationship between public access to farms and agriculture tourism. figure 1. conceptual framework 3. research methodology every study has a distinct technique. this study is based on quantitative data because its objective was to give empirical evidence regarding the tourism industry's impact on iraq's economy. this study collected a sample from the target population using a likert scale questionnaire. the scale items for this study have been adapted from previous research because a scale for measuring these characteristics has previously been constructed. in the source research, cronbach's alpha for these structures' items exceeded 0.70. this demonstrates the validity and dependability of the study's questionnaires. in addition, the factor loadings of each scale item were calculated, and only items with factor loadings exceeding 0.60 were included in this study. sin et al. (2005) is the source for the tourism marketing scale. this study offered valid scale items. second, the source for the farm tourism scale questionnaire is testa et al. (2019), as the validity of the scale items is supported by this study. in addition, the farmer's online access to measuring items is regarded as a reputable source. misaki et al. (2016), because this research also includes a questionnaire on validity. fourthly, the source of the public access to farms scale is testa et al. (2019), as this study includes valid and reliable scale items. lastly, the source of scale items for educated farmers is (trede et al., 2000), as this research also includes valid scale items for establishing the link between variables incorporated into the study's conceptual framework. the appropriate sample collection method is required for data gathering to validate the study's outcomes. indeed, the study is centered on the decision-making factors of farmers; consequently, the relevant demographic for this research is iraqi farmers. printed questionnaires were distributed to responders. 730 questionnaires were distributed to respondents, who returned 644 responses. respondents were given the study's introduction to collect the necessary data for this investigation. indeed, individuals were eager to contribute to our analysis. they were rewarded for their participation in the study. the pls measurement and structural model are considered for this investigation's conclusions. educated farmers public access to farms farmers access to internet agriculture tourism tourism marketing agbioforum, 24(1), 2022 | 164 abdullah, saeed, almoussawi, braiber, mubarak, and hammoode — determinants for farmers' decisions to participate in developing …. 4. findings 4.1 convergent validity the concurrent validity test is employed to determine the dependability and validity of this study (see figure 2). on the other hand, the research utilized the structural model to examine the influence of various factors on one another inside the conceptual framework. current research determines cronbach's alpha, factor loadings, composite reliability (cr), and average variance extracted (ave) to assess the findings' reliability and validity. the suggested cr criterion is 0.70 (henseler et al., 2010), while the ave requirement is 0.50. (wong, 2013). similarly, 0.60 is the suggested threshold for factor loadings (hair jr et al., 2020). however, the proposed reliability criterion for cronbach's alpha is 0.70. (ringle et al., 2015). the convergent validity results revealed the reliability and validity of the measurement scale used in the study. the specifics of convergent validity are provided in table 1. figure 2. measurement model table 1. convergent validity results constructs items factor loadings α rho_a cr ave agriculture tourism at1 0.921 0.947 0.947 0.959 0.825 at2 0.906 at3 0.896 at4 0.902 at5 0.916 educated farmers ef1 0.910 0.943 0.944 0.957 0.815 ef2 0.885 ef3 0.922 ef4 0.901 ef5 0.896 farmers' access to the internet fai1 0.920 0.932 0.933 0.952 0.831 fai2 0.919 fai3 0.905 fai4 0.903 public access to farms paf1 0.918 0.831 0.858 0.899 0.750 paf2 0.912 paf3 0.758 tourism marketing tm1 0.898 0.941 0.941 0.955 0.809 tm2 0.909 tm3 0.915 agbioforum, 24(1), 2022 | 165 abdullah, saeed, almoussawi, braiber, mubarak, and hammoode — determinants for farmers' decisions to participate in developing …. tm4 0.893 tm5 0.880 4.2 discriminant validity this study also examined the conclusions of discriminant validity using the pls algorithm (see table 2). this investigation evaluates the differentiation across measurement scales based on the discriminant validity of questionnaire questions used to collect primary data. gold et al. (2001) advocate the heteritrait-monotrait (htmt) technique for discriminant validity. the htmt approach of discriminant validity has a validity threshold of 0.90 (gold et al., 2001). there appears to be discriminant validity in the scale items of the study questionnaire. this indicates that the items measure distinct dimensions of each research construct despite reflecting the investigation variables. table 2. discriminant validity agriculture tourism educated farmers farmers' access to the internet public access to farms tourism marketing agriculture tourism educated farmers 0.788 farmers' access to the internet 0.708 0.680 public access to farms 0.669 0.656 0.882 tourism marketing 0.591 0.577 0.746 0.679 4.3 partial least square – structural model this study tested the structural model with pls bootstrapping calculations (see figure 3). in this regard, h1 results (t = 7.962) and (p = 0) discovered the impact of educated farmers is significant on agriculture tourism. furthermore, h2 results (t = 0.867) and (p = 0.387) found the effect of farmers' access to the internet is insignificant on agriculture tourism. thirdly, h3 results (t = 64.904) and (p = 0) discovered the impact of public access to farms is significant on agriculture tourism. in the same way, h4 results (t = 6.421) and (p = 0) discovered the impact of tourism marketing is significant on agriculture tourism. finally, h5 results (t = 6.397) and (p = 0) found the impact of tourism marketing as a mediator is significant between public access to farms and agriculture tourism. measurement model results are available in table 3. figure 3. measurement model table 3. measurement model results no hypotheses t p 1 educated farmers have an impact on agriculture tourism. 7.962 0 2 farmers' access to the internet has an impact on agriculture tourism. 0.867 0.387 3 public access to farms has an impact on tourism marketing. 64.904 0 4 tourism marketing has an impact on agriculture tourism. 6.421 0 agbioforum, 24(1), 2022 | 166 abdullah, saeed, almoussawi, braiber, mubarak, and hammoode — determinants for farmers' decisions to participate in developing …. 5 tourism marketing mediates the relationship between public access to farms and agriculture tourism. 6.397 0 5. discussion and conclusion this study's conclusions are based on a structural equation model. in this investigation, smart pls 3.0 was used. in this sense, the initial test of the hypothesis found a substantial correlation between educated farmers and agricultural tourism. farmers with education produce things in a manner that is conducive to sustainable development (trede et al., 2000). agriculture tourism is influenced by farmers' development, which motivates them to engage in tourism promotion (mwambi et al., 2020). educated farmers in canada and australia, on the other hand, are more motivated to innovate (zhou et al., 2022). the government must boost the performance of farmers by publishing information on the agriculture industry and conducting seminars to increase their comprehension (aubert et al., 2012). the best farmers recruit educated workers to implement new agricultural production technologies (sapbamrer et al., 2022). the findings of the second hypothesis lack statistical significance. regarding this, there is no correlation between farmer internet access and agriculture tourism. indeed, the internet plays a proper function in tourism (singh et al., 2013). however, iraqi farmers are less educated and interested in accessing the internet. they do not view farm tourism as a crucial factor for tourism performance in this manner. indeed, agriculture tourism is growing as farmers become more interested (jung et al., 2021), but in the case of iraq, farmers' internet access has no bearing on agriculture tourism. the lack of education among iraqi farmers is also a significant barrier to agriculture output, which is essential for agriculture tourism in any country. the results of the third hypothesis are noteworthy and consistent with previous studies. indeed, the study revealed that the relationship between public access to farms and agro-tourism has a considerable impact. without a doubt, the growth of the tourism industry can benefit from the development of public tourism facilities (usman et al., 2021). people are encouraged to visit the countries attempting to modernize their farms and farms themselves (christian, 2012). the upshot is an upsurge in agricultural tourism in these countries. the american agriculture sector's performance has improved due to the increased availability of agricultural products (poulianiti et al., 2019; zhao et al., 2020). in this approach, the emphasis on agriculture tourism might be heightened by trips to rural farms (torres, 2003). similarly, this study concludes that agriculture tourism is suited to any nation where people are more inclined to visit agricultural farms (anderson, 2018). the conclusion of the fourth hypothesis is crucial because it demonstrates that tourist marketing has a substantial effect on agro-tourism. marketing in the tourist industry is necessary to increase public knowledge of agricultural products vital to society (camilleri, 2018). farm tourism marketing in the united states is essential since it is crucial to attracting foreign tourists (kayumovich et al., 2019). indeed, tourism performance is enhanced by marketing that contributes to the sustainability of international visitor visits (lakmali et al., 2021). the findings of this study indicate that the mediation of tourist marketing between public access to tourism and farm tourism is substantial. appropriate development is required in tourism marketing to improve public comprehension of the tourism industry (hays et al., 2013; leung et al., 2013). the performance of thailand's agricultural sector contributes to the expansion of the country's agro-tourism industry (alghizzawi et al., 2018). in this way, agriculture tourism in canada is also influenced by tourism marketing, which has enabled individuals to visit farms (gretzel et al., 2014). 6. theoretical and tourism implications this study has significant practical and theoretical ramifications. previous research has examined agrotourism from various theoretical perspectives. in addition, the literature explored the connection between tourism marketing and tourism promotion. no specific study has, however, addressed the role of educated farmers in agriculture tourism. in this light, this study has identified farmer education as a critical aspect of agriculture tourism. similarly, our study has demonstrated the significance of the relationship between tourism marketing and agriculture tourism, while previous research ignored the impact of tourism marketing on farm tourism. similarly, the importance of the relationship between public access to farms and tourism marketing has been highlighted in this study. the previous study has overlooked the relationship between public access to farms and tourism marketing. in addition, this study reveals the mediating effect of tourism marketing on the relationship between public access to farms and agriculture tourism. the mediating relationship is novel in the body of knowledge because previous researchers disregarded this link. as it explains the relationship between several new variables and agriculture tourism, the theoretical framework of this study is a significant contribution to the existing body of knowledge. the study also has substantial practical implications for enhancing iraq's tourism industry for economic growth. the iraqi economists should evaluate the agriculture tourism sector's contribution to economic growth. the study has examined the significant influence of tourist marketing on the farm sector's tourism promotion. in this regard, the iraqi government could promote agro-tourism through worldwide marketing to lure foreigners to iraqi farms. on the other hand, the government must design an adequate strategy for educating farmers, as only educated farmers can produce reasonable agricultural goods. similarly, the government should control farms in iraq and agbioforum, 24(1), 2022 | 167 abdullah, saeed, almoussawi, braiber, mubarak, and hammoode — determinants for farmers' decisions to participate in developing …. focus more on the proper development of agricultural lands to encourage tourism in the agriculture sector. progress in the agricultural sector is crucial for developing and operating the tourism industry, and the iraqi government should follow the agricultural tourism models of thailand and indonesia. the reasonable development of farmers and improved resources can enable farmers to produce agricultural land more quickly, which could attract international tourists. these consequences can enhance agricultural tourism in iraq, bolstering the country's economy. 7. future research directions without a doubt, the current research is based on the novel gap in the literature, as no prior research has explored this gap in the literature for research purposes. notably, the findings of this study are an addition to the literature and the body of knowledge since they reveal that the factors of farmers' actions have a substantial impact on agricultural tourism in iraq. the study also has significant practical implications for enhancing iraq's tourism industry for economic growth. indeed, this study has some methodological and conceptual limitations. this study collected cross-sectional data, appropriate for this investigation, but cross-sectional data is inappropriate for generalizing the study's conclusions. regarding this, additional research should be undertaken on the data gathered over a lengthy period. similarly, this study utilized a likert scale questionnaire because it was simple for respondents to complete. however, the interview-based questionnaire would be suitable for future research aimed at comprehending the subjective perspective of farmers on agriculture tourism. furthermore, this study employs the significant mediating role of tourism marketing; 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forestry and agriculture, muhammadiyah university of palangkaraya, indonesia email: ekopramuditaisra@gmail.com https://orcid.org/0000-0002-1814-8383 large forest and land fires occurring each year have severely detrimental impacts. forest and land fires affect different types of land cover, the reason being that land cover indicates how fuel is available when a fire spreads. information on the distribution of points hotspot on various land covers is still difficult to find. therefore, this research is carried out to provide an overview to stakeholders who have an interest in forest and land issues as to where points of hotspot fire can be used as indicators of fire, and when integrated with land cover data, it is expected that information on the tendency of forest and land fire hazard in various land covers can guide policy in order for forest and land fire disaster to be anticipated as early as possible. the study was conducted in april until june 2019 with the context of the research set in the central kalimantan province. the stages of the current research on forest and land fire vulnerability class analysis based on the types of land cover starts with the identification and collection of data, followed by data analysis, to build a distribution map model hotspot on various covers. parameters observed were hotspots that were vulnerable during the last 10 years from 2009 to 2018. the results of calculations of the forest and land fire hazard class on forest land cover that are often included in the vulnerable category are secondary swamp forest (hrs). whereas the non-forest land cover which is often included at the dangerous level is the shrub shrubs (br). key words: forest fire, hotspot, land cover type. 1. introduction humans and the wider natural ecosystem have much to benefit from forests, which make them an important natural resource. wood and fuel, tourism, watershed protection and carbon storage are just a few of the multiple benefits it provides to mankind. increasing forest fire activity, on the other hand, is a major source of concern since it endangers the environment, the economy, and the lives of humans. we know that fire plays a significant role in the earth's natural ecosystems . because of this, fire is an important factor in forest disturbances (mulyanto et al., 2020). at the global scale, forest fires have a significant impact on vegetation dynamics, carbon stocks, land use change, and are a significant source of greenhouse gases and aerosols (aminudin et al., 2020; elliott et al., 2019). however, there is a great deal of uncertainty about the distribution, extent, and intensity of fire occurrence on a global scale, as well as the amount of biomass that is burned as a result (handoko et al., 2021; yin et al., 2019). as the only source of global information on fire incidence, satellite products are the only available source since they give a complete geographical and temporal coverage of fire-affected areas. fire hotspots and burned area patches are two types of satellite data products that have been used to map the occurrence of wildfires. warm spots are formed by temperature anomalies recorded by middle and thermal infrared sensors, whilst burned area patches are formed by the reflecting contrast between unburned and recently burned areas detected by the middle and thermal infrared sensors (mostly associated to the presence of char, ashes, and scorched leaves). in contrast, satellite overpasses only detect fires at the time of satellite overpass, implying that the detection of hotspots is merely a representative sample of the total fire occurrence (jiang et al., 2017; kadir et al., 2019), whereas reflectance alterations of burned patches persist for a longer period of time (from several weeks to years, depending on the ecosystem’s response to fire). furthermore, when fire incidents occur under dense cloud cover, it is possible that they will not be identified, resulting in additional fire omissions (kumari et al., 2020). central kalimantan province has experienced forest and land fires which were subsequently briefed on forest and land fires since decades ago (mulyanto et al., 2020; van der laan et al., 2018). first recorded in 1997, there have been large forest and land fires which have caused significant negative impacts in terms of ecological damage, decreased biodiversity, declining economic value of forests and soil productivity, micro and global climate change, as well as the smoke which affects the health of humans (magdalena et al., 2020). statistics pertaining to forest and land fires indicate the increasing level of forest degradation from year to year, with one of the causes being forest and land fire, both naturally and due to human intervention. therefore, human intevention can actually add fuel to problems resulting from forest and land fire during the dry season which is exacerbated by climate anomaly phenomena el nino which causes a worsening of the situation when the dry season arrives. as a resulr, forest and land fires are often difficult to deal with either through prevention or direct blackout (marlina et al., 2021). mailto:iseafitah@umpr.ac.id https://orcid.org/0000-0003-2451-4957 mailto:iyoetkapuas@gmail.com https://orcid.org/0000-0002-2041-1312 mailto:ekopramuditaisra@gmail.com https://orcid.org/0000-0002-1814-8383 agbioforum, 23(2), 2021 | 14 afitah, mariatyand isra. — analysis of forest and land fire with hotspot modis on various types of land cover in central kalimantan… different types of land cover will affect forest and land fires. this is because land cover indicates the availability of fuel where fire spreads. from observations, it is found that land cover in the form of shrubs tends to have a high number of hotspot findings. this condition shows that land cover consisting of shrubs has the highest forest and land fire risk (extremely high). this is because the type of fuel in shrubs is smoother and more flammable compared to forest vegetation (adrianto et al., 2020; khairani et al., 2020; venkatesh et al., 2020). within the experience of forest and land fires in central kalimantan in the last decade, there have been several times of forest and land fires that are large enough and have had a highly detrimental impact (minarni et al., 2020). this experience means that learning about effective prevention efforts needs to be carried out in an integrated manner in the future. one of these efforts must be towards utilizing information on the distribution of hotspots and other supporting data to be used as a basis for policies on how to deal with forest and land fires in central kalimantan. information about the level of fire vulnerability based on the distribution of points identified hotspots on various land cover is difficult to find. therefore not many people can understand how technology using remote sensing (sensing remote) and geographic information systems (gis) can support policy makers to deal with forest and land fires in central kalimantan (kumari et al., 2020; purnomo et al., 2018; purnomo et al., 2019). therefore, this research is carried out to provide an overview to stakeholders who have an interest in the issue of forest and land fires as to when and how points hotspot can be used as indicators of fire, and this information when integrated with land cover data it is expected to yield new and useful information on fire vulnerability in various types of land cover. therefore, this study aims to map the class of forest and land fire vulnerability in various types of land cover in central kalimantan province. the present research is expected to provide a new source of information for the community and local government or policy makers to help ensure that forest and land fire disasters can be anticipated as early as possible based on information regarding forest land and forest vulnerability . 2. methodology a. time and place the current research on the classes of forest and land fire vulnerability in types of land cover was carried out over a period of 3 months starting from data collection to data analysis, from april to june 2019. the scope of the research is specified to the central kalimantan province. b. tools and materials the tools needed in this research consist of hardware in the form of personal computers, printers and stationery as well as software in the form of software packages arcmap 10.5 and microsoft excel 2013 and mozzila firefox quantum version 66.0.5. the materials used in this study are: a. spatial data (shapefile) distribution of fashionable hotspots in central kalimantan province for the past 10 years from 2009 to 2018 on the basis of the results of nasa's terra and aqua satellite monitoring b. spatial data (shapefile) of central kalimantan province land cover types from the directorate of forest resources inventory and monitoring (ipsdh), directorate general of forestry planning and environmental management, ministry of environment and forestry c. spatial data (shapefile) administration area in central kalimantan province, spatial data ((shapefileadpum) sources from the central kalimantan public administration) bureau of spatial data (shapefile) 2016 indonesian earth map in the form of toponimi of village capital, district / city capital, road network, river sources from the geospatial information agency (big). c. parameters observed the parameters observed in this study are the hotspots that are indicated to cause forest and land fires. thee scope of the study covers types of land cover in central kalimantan province by observing the distribution of hotspots during the last 10 years from 2009 to 2018 . central kalimantan has 22 types of land cover types in which 7 species are the types of land cover in the form of forest and 15 species are the types of land cover in the form of non-forest, with details as follows: a. types of land cover in the form of forest: primary dry land forest, secondary dry land forest, primary mangrove forest, primary swamp forest, secondary mangrove forest, secondary swamp forest, plantation forest b. types of land cover in the form of non-forest: shrubs, plantations, settlements, open land, savanna / prairie, water bodies, swamp shrubs, dry land agriculture, mixed dry land agriculture, rice fields, ponds, airports / ports, transmigration, mining, wwamp. d. data analysis in this study, data analysis is used to determine the class of forest and land fires in the types of land cover. this analysis is divided into 2 parts, namely 1) analysis of forest and land forest vulnerability in the types of land cover in the form of forests and; 2) analysis forest and land fire vulnerability analysis on land cover types in the form of non-forest. this is done with a view to makea map of the forest and land fire vulnerability class and distribution of hotspot per year from 2009 to 2018. the following are the stages of the analysis of forest and land fire vulnerability classes: 1. determine the number of forest and land fire hazard classes. after collecting primary and secondary data, the number of karnutla vulnerability classes (kkn) is calculated using the formula according to purbowaseso (2004): agbioforum, 23(2), 2021 | 15 afitah, mariatyand isra. — analysis of forest and land fire with hotspot modis on various types of land cover in central kalimantan… kkn = 1 + 3,3 log n where n = number of types of land cover types, namely 7 types for land cover types in the form of forests and 15 types for land cover types in the form of non-forest 2. calculating score forest and land fire vulnerability interval classes. after obtaining the number of forest and land fire vulnerability classes, we calculate the intervals of each hazard class drawn in the form of scores on the basis of the number of distributions that occur. the following is used to calculate the class interval: 3. classifying hotspots into fire hazard classes. after the number of hazard class and interval scores of each class is known, it is then tabulated by classifying or grouping land cover types into classes the vulnerability in accordance with the total score of the hotspots that occur in each type of land cover. 4. mapping the fire hazard class. mapping the distribution of hotspots annually from 2009 to 2018 in various types of land cover is done using class data based on calculations and analysis with hazard gis software. 3. result & discussion a. hotspots on forest and non-forest land cover based on the accumulation of distribution of hotspot between 10 years from 2009 to 2018 on the development of land cover in central kalimantan which has 22 types of land cover where there are 7 types of land cover in the form of forest and 15 types of land cover types in the form of non-forest. a list of distribution of hotspots in various land covers is presented in table 1 below table 1: data recap of distribution hotspot in various land cover 2009-2018 no land cover type hostspot distribution (year) number 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 a. forest land cover 1. primary dry land forest 6 4 5 10 10 7 13 1 7 63 2. secondary dryland forest 2.121 191 1.050 1.076 1.036 1.395 1.895 209 95 337 9.405 3. primary mangrove forest 4. secondary mangrove forest 2 6 1 13 22 5. primary swamp forest 36 1 2 4 1 44 6. secondary swamp forest 4.464 34 724 535 527 1.879 8.413 50 13 157 16.796 7. plantations 71 5 53 80 31 57 240 13 19 29 598 number of forest land cover 6.700 234 1.839 1.701 1.604 3.341 10.578 273 128 530 26.928 b. non forest land cover 1. shrubs 2.081 194 1.053 1.194 934 2.106 2.288 119 66 221 10.256 2. swamp shrub 7.843 68 3.684 3.538 1.294 7.724 19.426 143 118 1.959 45.797 3. plantation 747 72 548 597 274 1.308 1.655 50 26 256 5.533 4. dry land agriculture 143 18 72 53 49 92 201 37 35 406 1.106 5. agricultural land mixed dry 900 126 510 546 398 805 1.429 212 119 432 5.477 6. settlement 124 7 69 38 30 82 181 12 8 12 563 7. open land 713 13 177 174 97 791 1.098 54 34 248 3.399 8. transmigration 70 5 16 13 16 25 20 1 166 9. mining 50 1 22 19 25 52 72 18 12 28 299 10. pond 1 2 2 1 6 11. rice fields 815 5 447 238 181 663 894 19 3 33 3.298 12. body of water 24 3 27 21 15 23 45 5 3 9 175 13. swamp 1.542 18 425 519 161 792 1.792 19 9 81 5.358 14. savanna 3 3 15. airport/harbor number of non forest land cover 15.053 530 7.052 6.950 3.474 14.465 29.102 689 433 3.685 81.433 total number 21.753 764 8.891 8.651 5.078 17.806 39.680 962 561 4.215 108.361 according to the recapitulation of distribution data of hotspots from 2009 to 2018, the total number of distribution hotspot at most on the cover. forest land is secondary swamp forest (hrs) and secondary dry land forest (hs) while in non-forest land cover the most concentrated distribution of hotspots is found in swamp shrubs (br) and shrubs (b). figure 1 shows the distribution of hotspots for 10 years from 2009 to 2018 on forest land cover in central kalimantan: agbioforum, 23(2), 2021 | 16 afitah, mariatyand isra. — analysis of forest and land fire with hotspot modis on various types of land cover in central kalimantan… fig 1. hotspot graph (2009-2018) on forest land cover table 2. recap class insecurity in forest land cover on 2009-2018 livelihood assets (a) descriptive statistics (b) multiple linear regression explanatory variables mean (sd) b (std. error) [t-value] collinearity statistics vif values constant 0.125 (0.080) [1.554] natural capital lsize : own land size 5.3495 (8.0036) -0.007* (0.004) [-1.697 1.330 human capital fedu : farmer’s level of education 5.59 (4.620) -0.011* (0.006) [-1.741] 1.137 fptpn : farmer’s level of participation in livestock rearing activities 1.60 (1.826) 0.043*** (0.015) [2.797] 1.061 physical capital hsize : herd size 5.61 (4.538) 0.019*** (0.006) [2.995] 1.109 financial capital icrop : the total (gross) annual income derived from crops 1.2003 (2.0342) 0.224*** (0.015) [15.334] 1.211 inonf : the total (gross) annual income derived from nonfarm sources 0.6407 (0.8075) 0.116*** (0.036) [3.242] 1.149 management mgtc : no. of managerial constraints 1.22 (0.761) -0.009ns (0.038) [-0.237] 1.138 dependent variable ilstock: the total (gross) annual income derived from livestock 0.5353 (0.6809) model diagnostics f-value 42.105*** r square 0.465 adjusted r square 0.454 std. error of the estimate 0.5031 durbin watson 1.594 note: standard error is written in ( ) parenthesis and t-stats value is written in [ ] brackets. *significance at 10% level, **significance at 5% level, and ***significance at 1% level the results from the graph above show that swamp shrubs (br), shrubs (b) in the last 10 years have seen distribution of hotspot much more than other non-forest land cover. this is due to the extent of the spread of land cover of swamps and shrubs in central kalimantan where each reaches 1,998,580 ha for swamp shrubs (13% of the area of central kalimantan) and 1,093,943 ha for shrubs (7% 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 h p h s h m p h m s h r p h r s h t n u m b er o f h o ts p o t hotspot graph ( 2009-2018) on forest land cover 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 agbioforum, 23(2), 2021 | 17 afitah, mariatyand isra. — analysis of forest and land fire with hotspot modis on various types of land cover in central kalimantan… of kalimantan area middle). large area of non-forest land cover is also proportional to the distribution of hotspots captured by satellite. this may be attriibutable to the many types of organic material that are small and smooth and derived from leaf litter and twigs which denote dry conditions and are therefore, more flammable; similar results are also reached by other researchers (ardila et al., 2017; rahman et al., 2019; sevinc et al., 2020). shrubs both on dry land and on wetlands (swamps) are degraded or critical areas that have land cover conditions that are always exposed to sunlight because the vegetation that grows is dominated by low vegetation (succession plants) that do not have canopy. the condition of the vegetation can also, among other reason, occur due to repeated fire incidents over a period of several years at the same location with the result that the growth of high-level plants (trees) is hampered. climatic conditions also affect the distribution of hotspots. as seen in the graph above, in 2009, 2014 and 2015 the highest number of hotspots occurred because in these year the climate event occurred, that is, el nino namely the phenomenon of sea level warming in the central to eastern pacific ocean, in general the impact of el nino is to cause dry conditions and reduced rainfall (aprilia et al., 2021; isna, 2018). low rainfall in september (2014 and 2015) correlated with the high number of hotspots during the month and the incidence of forest fires. the same observation has been reported by other researchers (budiningsih et al., 2020). the effect of this incident is a long drought making it easier the formation of fuel in various land in central kalimantan covers in 2015. in 2015, the largest land and forest fires were estimated to be ± 39,680 km2. the burned land was then continued in 2009 with an area of ± 21,753 km2 and in 2014 it was ± 17,806 km2.. .from the data above, it is clear that there has been a shift in the area of forest land cover to non-forest or an increase in the area of non-forest land cover; in this case it could have been triggered due to repeated forest fires over the past decade the distribution hotspot in the district / city administration area in central kalimantan is mmost concentrated in the pisau district, kapuas, kotawaringin east, and katingan. it ter call in harmony with districts that have the spread of fire-prone land cover as seen on the distribution map hotspot. b. forest fire vulnerability based on land cover type from the results of the calculation of the forest and land fire, we determine the hazard class using the formula sturges. the forest fire vulnerability class on forest land cover has 4 levels of categories, namely not prone, less prone, prone, and very vulnerable. meanwhile, the forest fire vulnerability class on forest land cover has 5 levels of categories, which are not vulnerable, less vulnerable, vulnerable, very vulnerable, and dangerous. based on the calculation of forest fire hazard class for 10 hazard years, a distribution map was obtained hotspot on various land cover and interval class calculation, with the following results: 1. hazard class on forest land cover data on hazard class on forest land cover is shown in table 2 below: table 3. recapitulation of vulnerability classes on non-forest land cover in 2009-2018 vulnerability category tahun 2009 2010 2011 2012 2013 not vulnerable hmp, ht, hp, hrp, hms hmp, hms, hrp, hp, ht, hrs hmp, hrp, hms, hp, ht hmp, hms, hrp, hp, ht hmp, hms, hrp, hp, ht less vulnerable hs hrs vulnerable hrs hrs very vulnerable hrs hs hs hs hs vulnerability category tahun 2014 2015 2016 2017 2018 not vulnerable hmp, hms, hrp, hp, ht hmp, hrp, hp, hms, ht, hs hmp, hrp, hp, hms, ht, hrs hmp, hms, hrp, hp, hrs, ht hmp, hms, hrp, hp, ht less vulnerable hrs vulnerable hs very vulnerable hrs hrs hs hs hs description : hp : primary dry land forest hrp : primary swamp forest hs : dry land secondary forest hrs : secondary swamp forest hmp : primary mangrove forest ht : plantation hms : secondary mangrove forest based on the calculation of the annual forest and land fire vulnerability class using distribution data from 2009 to 2018, it appears that forest land cover that often enters at very vulnerable level for 10 years is secondary dry land forest (hs), which is 7 times, and secondary swamp forest (hrs), which is 3 times. secondary dry land forest (hs) and secondary swamp forest (hrs) are types of forest cover that often enter at this agbioforum, 23(2), 2021 | 18 afitah, mariatyand isra. — analysis of forest and land fire with hotspot modis on various types of land cover in central kalimantan… very vulnerable level because it is likely that in the secondary forest land cover there are many community activities in managing land or opening new land by burning forests. besides that, in the secondary forest land cover there are many land accesses in the form of roads and water access in the form of rivers that can facilitate the community to carry out activities and interact directly with the forest. similar conclusions have also been reported in past research which state that the high fire density around the river is related to people's habits in catching fish around the lebak and dam by burning the vegetation (rasau and pandan) around the lebak and dam (budiningsih et al., 2020; harrison et al., 2020; tata et al., 2018). whereas the primary forest cover always falls into the category of not vulnerable; this is due to the lack of access, so that community interaction with the forest is lower than in the case of secondary forest. the category is very vulnerable for the worst fire years, such as in 2009 when the number of hotspots reached 3,551 points up to 4,467 points. in the year of the biggest fires, that is, in 2015, the number of hotspots ranged from 6,312 to 8,415 points. this means that seen from the magnitude of points, it can be illustrated that the area of land burned may affect forest land cover so that in the following year there will be a decrease in area, where in 2009 the total area of secondary dry land forest reached 4,767,836 ha and decreased the following year ie 4,626,826 ha. a similar decrease is notedin the case of secondary swamp forest cover in 2009 from 2,114,996 ha to 2,041,775 ha. however, for secondary dryland forests it increased in 2015 where 4,503,261 ha became 4,503,597 ha in the following year; this increaee could be attributed to the addition of changes in the condition of primary dryland forests that dwindled due to exploitation of secondary dryland forests. 2. hazard classes in nonforest land cover based on the calculation of annual forest and land use hazard data using distribution data of hotspots from 2009 to 2018, it appears that non-forest land cover that often enters dangerous levels for 10 years is shrub shrubs (br ), that is 8 times, and mixed dryland agriculture (pc), that is, 2 times. the data pertaining to vulnerability classes on non-forest land cover is depicted in table 3 below. table 3. recapitulation of vulnerability classes on non-forest land cover in 2009-2018 vulnerability category years 2009 2010 2011 2012 2013 not vulnerable tm, sv, bdr/plb, a, tb, tr, pm, pk, pt, t, sw, r, pc tm, sv, bdr/plb, tb, a, tr, sw, pm, t, pt, r sv, bdr/plb, tm, tr, a, tb, pm, pt, t, r, sw, pc, pk tm, sv, bdr/plb, tr, a, tb, pm, pt, t, sw, r, pc, pk tm, sv, bdr/plb, a, tr, tb, pm, pt, r, sw, t less vulnerable b br, pk b b pk, pc vulnerable very vulnerable pc b dangerous br b br br br vulnerability category years 2014 2015 2016 2017 2018 not vulnerable bdr/plb, tm, sv, tr, a, tb, pm, pt, sw, r, t, pc, pk sv, bdr/plb, tm, tr, a, tb, pm, pt, sw, t, pc, pk, r, b sv, bdr/plb, tm, tr, a, pm, tb, sw, r, pt sv, bdr/plb, tm, tr, sw, a, pm, r, tb sv, bdr/plb, tm, tr, a, pm, tb, sw, r, b, t, pk less vulnerable b pk, t pk, t, pt pt, pc vulnerable b b very vulnerable br dangerous br br pc br, pc br information: b : shrubs tb : mining br : swamp bush tm : pond pk : plantation sw : rice fields pt : dryland agriculture a : water body pc : dryland agriculture mixed r : swamp pm : settlement sv : savanna t : open land bdr/plb : airport/port tr : transmigration swamp shrublands (br) often fall into the category of hazardous hazard classes. this is because there are many swamps in central kalimantan found in peatlands where the management of the land has resulted in the construction of a lot of canals that make the condition of the swamp shrubs on the peatlands worse by reducing water absorption function as well as through long drought conditions so that the swamp shrubs that were originally wet, are nowdry and flammable. as explained earlier, the hazard class on forest land cover consists of 4 classes where the worst conditions make land cover vulnerable to fire. hazard class on non-forest land agbioforum, 23(2), 2021 | 19 afitah, mariatyand isra. — analysis of forest and land fire with hotspot modis on various types of land cover in central kalimantan… cover consists of 5 hazard classes, where the worst conditions are categorized as dangerous. to illustrate hazardous categories in the non-forest class, the most extreme numbers are shown in 2015 data where the number of hotspot readings reached 15,544 points up to 19,429 points, then in 2009, for the dangerous category the number of readings of hotspot reached 6,280 points up to 7,849 points and in 2014 the number of readings of hotspot was recorded at 6,184 points up to 7,729 points in the hazardous category and the number of hotspots illustrated, signify that the impact of the fire is quite extensive. starting from forest and land degradation due to burning land, environmental damage and pollution, damage to forest ecosystems and biodiversity, as well as on air quality pollution due to the heavy smoke causing health problems such as acute respiratory infections (ari), bronchial asthma, bronchitis, pneumonia, and eye and skin irritations (harrison et al., 2020; subekti et al., 2020; wasis et al., 2018). some central kalimantan traditional community activities such as shifting cultivation carried out in shrubs also affects forest and land fires, as reported by other researchers of the sonor rice cultivation system (where rice is planted on peatlands which are deliberately burned in the dry season) allegedly a trigger source of forest and land fires. likewise, land clearing by forest farmers aims to open new fields or expand their land whereby land preparation is carried out with a system of slash, cut and burn. shrubs is an area with possible shifting cultivation activities (ardila et al., 2017; hurteau et al., 2019; rahman et al., 2019). furthermore, in terms of the distribution and extent of land cover, swamps and shrubs each year show the largest area compared to other types of land cover with data showing the enriched distribution of hotspots in central kalimantan. other non-forest cover such as plantation (pk), mixed upland agriculture (pc), open land (t), paddy (sw) and swamp (r) also have distribution of hotspots although smaller compared to shrubs; this is due to community activities as land cover is controlled from negligence of burning activities in managing land. likewise, the nonforest land cover in the form of the most developed land, namely settlement (pm), trasmigation (tr), mining (tb), tambak (tm), airport / port (bdr / plb) is non-land cover forest with the distribution of this hotspot being lowest due to community-led efforts to maintain and prevent forest and land fires. 4. conclusions and suggestions 4.1 conclusions this study attempts to identify the different types of land cover in central kalimantan province that are most vulnerable to forest and land fires. based on land cover data, central kalimantan consists of 22 types of land cover further divided into 7 types of forest cover, resulting in 4 classes of forest and land fires while 15 non-forest cover types produce 5 classes of forest fire vulnerability. the distribution of hotspots during the decade of 2009-2018 which was was mostly on forest land cover was in secondary swamp forest (hrs) and secondary dry land forest (hs) while in non-forest land cover, it was mostly in swamp shrubs (br) and shrubs (b). forest fire hazard classes often occur on secondary land cover. 4.2 suggestions a primary goal of this study was to equip policymakers in the community and local government with fresh data on forest and land fire risk so that they can more effectively prepare for a forest and land fire disaster in the future. in the light of findings of the study, we out forth 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https://orcid.org/0000-0002-0307-6751 rabiul islam school of international studies, universiti utara malaysia email: rabiul@uum.edu.my https://orcid.org/0000-0002-9840-8754 lee wen chiat faculty of business and management, universiti teknologi mara (uitm) sarawak branch email: wenchiat@uitm.edu.my https://orcid.org/0000-0003-3049-5211 *corresponding author recently, rice production has gained significant attention due to increasing requirements and rural infrastructure, labour, and capital investment have been considered the significant factors for rice production that need researchers' attention. hence, the present article examines the impact of rural infrastructure, labour and capital investment on rice production in malaysia. the current study has extracted secondary data related to crop production from the department of agriculture, extension census of agriculture state series, yearly report ministry of malaysia and department of statistics at state levels. in addition, data for rural infrastructure, labour and capital investment has been collected from the department of statistics malaysia (dosm) and the world bank. the current study has applied the augmented dickey-fuller test (adf) to examine the unit root and autoregressive distributed lag model (ardl) to test the association among the variables. the findings indicated a positive correlation between rural infrastructure, labour, capital investment and rice output in malaysia. key words: rural infrastructure, labour and capital investment, rice production 1. introduction rice is an important staple food crop in malaysia and is consumed by all levels of malaysians. the crop is highly cherished and consumed daily. the average rice consumption per capita in 2016 was 80 kilograms per person per year. this equates to around 2.7 million metric tonnes of rice consumed by malaysians in 2016 at an average monthly cost of rm44 per family. as a large rice consumer, malaysia also has to increase rice production to meet the country's growing population's rice consumption. on the other hand, domestic output accounted for only 67% of total production, with the remainder of malaysia relying heavily on rice imports from thailand, vietnam, and pakistan (omar, shaharudin, & tumin, 2019). despite the substantial increase in rice production in malaysia, the rate of increase in rice production is less than the population growth rate. rice cultivation is an ancient, heavily protected, and subsidised industry in malaysia. in the new global economy, rice cultivation has become a central issue for food security in malaysia. nowadays, the competitiveness of the environment has made the malaysian government cautious and more aware of the rising population and the demand for rice production. malaysia has eight main granary paddy areas that can support the ' 'population's rice demand and are regarded as food security for the nation. this was established under national agricultural policy (nap) 1984 – 1991 for strategic intervention in the paddy and rice ' 'sector's development and to secure national food security (firdaus, leong tan, rahmat, & senevi gunaratne, 2020a). there are various policies, strategies, and programmes for rice production in this main granary area to support and strengthen paddy 'farmers' livelihoods because farmers remain in the b40 household category. besides, mafi's primary goal is to modernise and improve the agriculture sector, enhancing ssl levels and boosting industry revenue. furthermore, budget 2022 also focuses on the paddy and rice industry to ensure that food security achieves 75 per cent ssl in 2025. for 300,000 farmers, the director-general of mafi plans to boost input and output subsidies, such as subsidies for fertilisers and pesticides for hill paddy, as well as a pricing scheme of rm360 per metric tonne for rice mills, which will allow them to raise their production while also increasing their net incomes (salisu, gao, & quan, 2021). food security is also a significant issue in malaysia. according to the department of statistics malaysia (dosm), ' 'malaysia's rice sufficiency level is 69 per cent in 2019, while in 2020 drop to 63 per cent. on the other hand, the agriculture and food industries ministry (mafi) target a self-sufficient level (ssl) of 75 per cent for the local rice production by 2025 (harun, hanafiah, & aziz, 2021). this was stated in the 12th malaysian plan (12mp) that it comprises the transformation and modernisation of the local agri-food industry and boosts ssl levels for other food sources (12th malaysian plan). furthermore, table 1 below shows fiveyear malaysia plan from year 1966 until 2025, and the plan estimates different targets to achieve ssl because it will forecast according to the previous year ssl and include the economy growth. previous year malaysia not achieving 100 percent ssl because of the covid-19 pandemic. ssl in 2019 achieved 69% and had a decline in 2020 at 63 per cent. mafi plan for the next five-year, mailto:irwanshah@uum.edu.my https://orcid.org/0000-0002-9435-5800 mailto:scholar_economist@yahoo.co.uk https://orcid.org/0000-0002-0307-6751 mailto:rabiul@uum.edu.my https://orcid.org/0000-0002-9840-8754 mailto:wenchiat@uitm.edu.my https://orcid.org/0000-0003-3049-5211 agbioforum, 24(1), 2022 | 51 abidin, haseeb, islam, and chiat. — the role of rural infrastructure, labour and capital investment on the rice production in malaysia malaysia will achieve 75% ssl of rice with a new programme and initiative to help 'farmers' livelihood and improve rice production. figure 1: ' 'malaysia's rice self-sufficiency level (ssl) moreover, implementing the national fourth industrial revolution (4ir) will boost all sectors to enhance food security, especially agriculture. agriculture's development may be reinvigorated if new technology and innovative farming are used. a major focus here is accelerating the transformation of agriculture into a modern, dynamic, and competitive industry backed by increased research, development, commercial and innovation (r & d, c & i) be better (12th malaysia plan). the national food security framework and the national agro-food policy 2021-2030 (nap 2.0) will be implemented to achieve food selfsufficiency targets and international food safety standards. additionally, nap 2.0 explains that rice and paddy are a significant subsector of basic daily foods, with the record ssl increasing from 60.3% in 2010 to 60.3% in 2019. (69.0% ).it was not achieving our ssl target yet (hanafiah et al., 2019). due to that, this policy applies some strategies, which are using land and water irrigation efficiently, harnessing the potential of a variety of special local rice, restructuring subsidies towards empowering production in a business decision, involving more participation from private sectors along the value chain, and promote, encourage, and train youth to engage in paddy and rice sub-sectors. the paddy and rice sub-sector strategy aims to increase production volume, improve subsistence level, improve the efficiency of using natural resources, and improve paddy farmers' living standards and income levels for the next ten years (nodin, mustafa, & hussain, 2022). malaysia is suffering from a lack of food production, especially rice production. according to a study conducted on several factors, issues, challenges, and problems affecting malaysia's paddy cultivation. furthermore, the rice industry in malaysia faces several challenges, including land competition, because urbanisation and the expansion of other industrial projects caused a decline in soil fertility because of the use of numerous chemical fertilisers. besides, land for agricultural activities is limited, caused by the opening of unsustainable forest areas that will damage the environment, especially water pollution occurs. most agricultural activities globally use freshwater resources to get higher quality for their crops (firdaus, leong tan, rahmat, & senevi gunaratne, 2020b). rice farming is plagued by infrastructure challenges, contributing to the crop's poor performance. the poor rural infrastructure contributes to the weaker performance of rice farmers and increases their level of poverty. also, the low rice productivity has led to low selfsufficiency in the country (rusli, noor, taib, & han, 2018). generally, infrastructure facility in malaysia is poor, especially in the rural areas of the study area. there is a lack of good storage facilities for the paddy seeds to be distributed to the farmers and thus resulting in low productivity of rice. poor access to some rural infrastructure facilities hinders full utilisation of potentials in rice farming. furthermore, rice production's low and higher production cost efficiency also influences 'farmers' income. this is because technology usage in the rice industry remains low because small-scale producers tend towards traditional farming due to insufficient financial support and education. in addition, an investor lacks interest, an investor lacks interest in increasing financial support and developing the best product due to the low-profit perceptions and high risk for investors. in other words, rice production lacks infrastructure facilities because most farmers depend on the middleman's imported agricultural input (akhtar & masud, 2022). moreover, youth have a poor perception of the agro-food sector, which is labour intensive and has a low return compared to work at the organisation. young farmers also face many challenges, such as land availability and loan 0 20 40 60 80 100 1st plan (1966 – 1970) 2nd plan (1971 – 1975) 3rd plan (1976 – 1980) 4th plan (1981 – 1985) 5th plan (1986 – 1990) 6th plan (1991 – 1995) 7th plan (1996 – 2000) 8th plan (2001 – 2005) 9th plan (2006 – 2010) 10th plan (2011 – 2015) 11th plan (2016 – 2020) 12th plan (2021 – 2025) ssl (%) agbioforum, 24(1), 2022 | 52 abidin, haseeb, islam, and chiat. — the role of rural infrastructure, labour and capital investment on the rice production in malaysia application without collateral to start up. besides, there is competition for labour costs with foreign workers because that will reduce 'farmers' income. however, the 12th malaysia plan emphasises strengthening smart farming to recover agriculture sectors and economic growth. the adoption of smart farming through modern and new technology will transform the agriculture sector become a dynamic and competitive sector. however, implementing smart farming with youth participation because they are still fresh and can get proper education about agriculture sectors can also specialise in machinery and efficient management (rahim et al., 2021; tan, fam, firdaus, tan, & gunaratne, 2021). furthermore, there is a need for policy changes that allocate funds to support youth involvement in rural development, guidance and support for young farmers seeking to develop their diversification strategies, lifelong learning opportunities, and, finally, the use of creative methods to engage young people in rural development (akhtar, masud, & afroz, 2019). this research attempts to increase efficiency by identifying the critical factors affecting rice production efficiency in malaysia at the national and household levels. this research may contribute to a better understanding of the variables affecting rice output in malaysia. first and foremost, research into the factors that contribute to this issue will enable the development of more effective policies and strategies for increasing sustainable rice production and identifying technical advancement policies that should be implemented to improve malaysia's rice sector. it is more sustainable to identify these aspects that impact rice productivity. secondly, this research may suggest increasing ssl rates in malaysia for food security. as a result, there is potential to boost output from current farmlands if rice production efficiency is improved via modern farming and new infrastructure facilities. therefore, greater output and productivity are fundamentally contributed to increased production efficiency. besides, the research becomes significant since it will discover the elements affecting malaysia's riceproducing system. 2. literature review most literature examines rice production using labour and capital (conventional cobb-douglas production model), which is incomplete in examining rice productivity (bapari & joy, 2017). recent studies on crop productivity incorporate infrastructure in affecting crop productivity, such as wang, huang, wang, and findlay (2018), cook (2011) and manjunath and kannan (2017). these studies focused on the impact of infrastructures, such as roads, communication, irrigation, electricity, farm size, fertiliser, education, storage, credit, and extensions on agricultural production or productivity, using the cobb-douglas production function, translog cost function, and regression analysis and the results found that infrastructure and irrigation are crucial in increasing crop productivity. however, the level of technology adopted and the distribution model are not discussed in crop productivity. the level of technology and distribution of seed, fertiliser, technology, and goods that move from manufacturer to farmers is crucial to improve productivity and therefore needs to be discussed. in addition, osanyinlusi and adenegan (2016) viewed productivity as the level of an output concerning the level of resources used in viewed agricultural productivity as a measure of the ratio of agricultural outputs (market value of final output) to agricultural be measured by the total factor productivity (tfp) by comparing the index of inputs to outputs, the total inputs used in the production. efficiency measures the technical and allocation of inputs in production to pro efficiency in economics when dealing with product performance. the two concepts are used interchange involved in the production; thus, the two are related (dilipkumar, burgos, chuah, & ismail, 2018). tanko, kang, and islam (2019) viewed infrastructure as dynamic in economic development theory. it refers to the services of tertiary production activities depend. these infrastructures include social and capital/public services such as law and ord supply, transportation, electricity, irrigation, and drainage systems. infrastructure facilities are the backbone for development, allowing the collaboration of factors of production to facilitate one another in production. a study by de soyres, mulabdic, and ruta (2020) reports that supporting the development of a nation has a positive impact on productivity and welfare of people, though very expect were the major problem of development to the third world nations. thus, requires adequate planning especially in rural areas. rice is an essential component in the agriculture sector and plays a key role in malaysia's gross domestic product (gdp). in the new global economy, rice cultivation has become a central issue for food security in malaysia. unfortunately, malaysia's gross domestic product (gdp) in rice productivity has declined continuously since 1975. the last two decades have seen a declining trend toward paddy cultivation in malaysia. as the agriculture sector lost its importance in the national economy, insufficient rice productivity has received considerable critical attention from the government. over the past decade, most research in paddy productivity has emphasised the importance of domestic rice production. the existing literature on domestic rice cultivation is extensive and focuses particularly on the factor affecting rice production in malaysia. a large volume of published studies describes the importance of rice production and consumption. according to bashir and yuliana (2019), increasing rice food security is a critical development objective since rice food is the most fundamental human requirement. similarly, azwardi, bashir, adam, and marwa (2016), revealed that rice cultivation is critical since it may also help alleviate poverty. this is because there is a lack of good storage facilities for the paddy seeds to be distributed to the farmers, thus resulting in low rice productivity. moreover, a significant relationship exists between the agbioforum, 24(1), 2022 | 53 abidin, haseeb, islam, and chiat. — the role of rural infrastructure, labour and capital investment on the rice production in malaysia socio-economic factors of paddy farmers and their paddy production. hussin and mat (2013) found that several socio-economic and physical characteristics had significant effects on paddy productivity in malaysia. in addition, household size and level of education are very important and the main factor affecting paddy 'farmers' income. according to afroz, muhibbullah, and rahman (2021), poverty among farmers occurs because of the nofarm income and lower education in agriculture, which positively influenced farmers. besides that, adopting technology for a fertiliser that could boost rice production was significant and positively impacted. according to saiz-rubio and rovira-más (2020), greater adoption of digital farming will improve farmers' finances and ting the food need of an expanded population. in addition, young farmers with better education must use this technology to balance the ageing population in rural areas. some gaps are identified based on the previous literature concerning the impact of infrastructure on agricultural productivity study. many infrastructure studies by cook (2011), ojo, ogundeji, babu, and alimi (2020) and azwardi et al. (2016) focused on the effect or impact of irrigation, electricity, farm size, fertiliser education, storage, credit, and extensions on agricultural production or productivity translog cost function, and regression analysis. besides, tanaka et al. (2017) suggest further study on yield variations for further development in the yield. alam, humphreys, and sarkar (2017), requirement and crop performance. martins et al. (2017) recommend a study on changes in soil quality. furthermore, there are inconsistencies in the reports of studies on climate change in nigeria. besides, huong et al. (2017) and zhang et al. (2017) recommend further study on perceived risks of climate change practices and the barrier to adaptation practices. despite a substantial increase in world rice production, the growth rate is less than the population growth. thus, this study intends to fill the literature gap by adopting the neoclassical douglas stochastic frontier production function model to examine the impacts of technology, infrastructures, labour, and cap malaysia. technology improvement and infrastructures are essential to increase rice productivity besides labour and capital. m labour and capital (conventional cobbdouglas production model) is not complete in examining rice productivity (nazli, halim, abdullah, hussin, & samsudin, 2018). additionally, this study addresses a gap in previous research on the regression model by examining rice productivity using infrastructure (irrigation, extension), improved seeds (technological advancement), and capital and labour as inputs. the new model of rice productivity includes technological change, infrastructure, capital, and labour. using this improved model, policies are recommended to increase rice productivity and meet the self-sufficiency of 70 percent of malaysia. the framework indicates the determinants and flow of how rice production is produced until distributed to household levels. next, the ability of farmers to get higher paddy crops and diversify their income and capital as sources to get higher yields once adopting new machinery and technology (rahman et al., 2019). furthermore, these aspects are critical in determining food security outcomes and will significantly impact the selection of evaluation indicators. as a final point, the framework emphasises that food security is not an aim but rather an important component in the larger idea of human well-being for rice as a staple food and to make sure rice will be sufficient for all populations in malaysia. these aspects of food security and rice production are influenced by the framework's selection of indicators and infrastructure in rice production to analyse and examine rice productivity. according to the world food programme in the comprehensive food security & vulnerability analysis guidelines (cfsva), macroeconomy analysis in food availability, household accessibility, and utilisation plays a role in determining how well they can feed themselves. additionally, this is an introduction to the right to appropriate rice nutrition and the capacity of farmers to raise their income through the adoption of infrastructures in the production framework. the interplay generally influences the paddy production status among various infrastructures, technology, fertilisers, and seeds. furthermore, achieving food security requires addressing all three of these separate dimensions, ensuring that the aggregate availability of physical supplies of food from domestic production, commercial imports, food aid, and national stocks is sufficient. second, household livelihoods provide adequate access for all household members to those food supplies through home production, market purchases, or transfers from other sources. third, the utilisation of those food supplies is appropriate to meet all individuals' specific dietary and health needs within a household. lastly, stabilisation occurs when all pillars above are accomplished, although it will expose with risk exposure and need high resilience. having food security means that all people, at all times, have physical and economic access to a sufficient supply of safe, nutritious food that meets their dietary requirements and food choices to live an active and healthy lifestyle (saeed, harun, & nasef, 2019). moreover, this framework to understand this research how well the domestic production of rice can get a high yield also, the rural farmers will be farming easily with available infrastructure. from either a shortor long-term viewpoint, the food security analysis is a static assessment of food availability and household restrictions to that access, with little consideration of the changing environment. therefore, risk and vulnerability analysis for rural infrastructure in rice production was needed to take a more dynamic and forward-looking approach to rice availability. then, it considers the risk that farmers experience in paddy production in their day-to-day decision-making and their agbioforum, 24(1), 2022 | 54 abidin, haseeb, islam, and chiat. — the role of rural infrastructure, labour and capital investment on the rice production in malaysia ability to react effectively over time. the result of the selfsufficient level of rice will be known when this study examines all variables. 2.1 data collection and analysis techniques to collect the necessary and relevant data for statistical analysis, the number of accessible observations is defined by the central limit theorem, which asserts that as the number of discrete occurrences increases, the function resembles a normal distribution. over 29 years, researchers examined annual data from 1990 to 2019. furthermore, secondary data will be collected from the crop production state office, department of agricultural, extension census of agriculture state series, yearly report ministry of malaysia and department of statistics. in addition, data for food security will be collected from the department of statistics malaysia (dosm) and the world bank. to estimate the analysis, the factors expected to be evaluated rice output as a proxy for labour, paddy production, fertiliser, irrigation, machinery, and capital investment. the estimation data will be based on the annual data sector-wise. rice production, labour, capital investment, infrastructure adoption, and food security indicators are all proposed as variables in the empirical model. besides, the cobbdouglas production function will use for this study to measure the productivity of rice production. at the same time, the food security index is defined in its four pillars: food availability, accessibility, utilisation, and stabilisation. this research uses the cobb-douglas production function to view that rice production output results from the amount of labour and capital invested. furthermore, this function will measure the changes or improvements in efficiency, technology, and infrastructure. the model was following; 𝑄𝑡 = 𝛼0 + 𝛽1𝐼𝑛𝑓𝑡 + 𝛽2𝐿𝑎𝑏𝑡 + 𝛽3𝐶𝑎𝑝𝑡 + 𝑒𝑡 (1) where: q = rice productivity inf = infrastructure or technology adopted lab = amount of labour cap = capital investment the adoption of infrastructure was computed as an independent variable to identify the impact of rural infrastructure on rice productivity in the rice-producing centres and investigate the rural infrastructure causing the differences in rice yield among rice farmers in the northern region. the explanation of the model based on the cobb-douglas production function is as follows: 𝑅𝑝𝑡 = 𝛼0 + 𝛽1𝐹𝑚𝑠𝑡 + 𝛽2𝐼𝑟𝑔𝑡 + 𝛽3𝐸𝑙𝑠𝑡 + 𝛽4𝐿𝑎𝑏𝑡 + 𝛽5𝐶𝑎𝑝𝑡 + 𝑒𝑡 (2) where: rp = rice productivity fms = farm size irg = irrigation facility els = electricity supply lab = amount of paddy farmers cap = capital investment the current research has examined the correlation matrix that shows the association among the variables. in addition, the current research has also run the adf test that exposed the unit root among the variables. the equation of the adf test is given as under: 𝑑(𝑌𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑌𝑡−1 + 𝑑(𝑌𝑡(−1)) + ɛ𝑡 (3) the current article also runs the ardl model to assess the short and long-run association's association. the ardl model can suit the study when some variables are stationary at the level, and some are stationary at first difference. in addition, the ardl model provides both long and short-run associations. in equation (4), δ1, δ2, δ3, δ4, & δ5 shows ""short-run coefficients"""""". while φ1, 𝜑2, φ3, φ4, φ5, & ɛ1 show the "long-run coefficients" and the error term. the ardl model is shown below: ∆𝑅𝑝𝑡 = 𝛼0 + ∑𝛿1∆𝑅𝑝𝑡−1 + ∑𝛿2∆𝐹𝑚𝑠𝑡−1 + ∑𝛿3∆𝐼𝑟𝑔𝑡−1 + ∑𝛿4∆𝐸𝑙𝑠𝑡−1 + ∑𝛿5∆𝐿𝑎𝑏𝑡−1 + ∑𝛿6∆𝐶𝑎𝑝𝑡−1 + 𝜑1𝑅𝑝𝑡−1 + 𝜑2𝐹𝑚𝑠𝑡−1 + 𝜑3𝐼𝑟𝑔𝑡−1 + 𝜑4𝐸𝑙𝑠𝑡−1 + 𝜑5𝐿𝑎𝑏𝑡−1 + 𝜑6𝐶𝑎𝑝𝑡−1 + ɛ1 (4) 3. research findings the current research findings have shown the correlation matrix that shows the associations among the variables. the results exposed that fms, irg, els, lab and cap positively associated with rp of the study. table 1 shows the correlation matrix. table 1: matrix of correlations variables rp fms irg els lab cap rp 1.000 fms 0.382 1.000 irg 0.534 0.622 1.000 els 0.620 -0.091 0.982 1.000 lab 0.362 0.872 0.152 0.982 1.000 cap 0.525 0.288 0.542 0.272 -0.662 1.000 additionally, the current research utilised the adf test, which revealed the unit root relationship between the variables. the findings indicated that the rp, fms, irg, and lab were all stationary at the same level. moreover, the data demonstrated that els and cap were level stationary. the results of the adf test are shown in table 2. the study also runs the ardl bound test to explore the cointegration among the variables. the results indicated that calculated f-statistics (5.732) are larger than the critical values at a five and ten per cent level of significance. table agbioforum, 24(1), 2022 | 55 abidin, haseeb, islam, and chiat. — the role of rural infrastructure, labour and capital investment on the rice production in malaysia 3 shows the ardl bound test results. the current study used the ardl model to examine the short-run connection between variables. the results suggested that fms, irg, els, lab, and cap have a positive and statistically significant relationship with the study's rp. the relationship between the constructs in the short run is seen in table 4. table 2: unit root test table 3: ardl bound test model f-statistics lag level of significance bound test critical values i(0) i(1) rp/(fms,irg,els,lab,cap) 5.732 4 1% 6.251 6.743 5% 5.162 5.672 10% 4.123 4.629 table 4: short run coefficients variable coefficient std. error t-statistic prob. d(fms) 0.665 0.232 2.866 0.024 d(irg) 0.873 0.219 3.986 0.009 d(els) 4.987 1.672 2.983 0.025 d(lab) 1.342 0.452 2.969 0.026 d(cap) 2.192 0.512 4.281 0.000 cointeq(-1)* -1.392 0.281 -4.954 0.000 r-squared 0.542 mean dependent var -0.041 adjusted r-squared 0.539 s.d. dependent var 2.319 the current study has checked the long-run association among variables using the ardl model. the results indicated that fms, irg, els, lab and cap have a positive and significant association with the rp of the study. table 5 shows the long-run association among the constructs. table 5: long term coefficients variable coefficient std. error t-statistic prob. fms 1.342 0.341 3.935 0.002 irg 3.928 1.147 3.425 0.008 els 1.282 0.267 4.081 0.000 lab 3.429 0.681 5.035 0.000 cap 2.922 0.815 3.585 0.006 c 0.988 0.295 3.349 0.013 4. discussions the results indicated that rural infrastructure is positively associated with rice production in malaysia. the developed infrastructure always provides the best ways to enhance the production of a particular product. the developed rural infrastructure related to the rice field enhances rice production. this outcome matched with the daud, omotayo, aremu, and omotoso (2018) investigated that the developed infrastructure in the rural area can increase the production of a particular crop and enhance the country's economic growth. in addition, these results are also in line with mgale and yunxian (2020) also examined that a strong infrastructure always provides the best circumstances for the high level of rice production in the country. moreover, the findings also revealed that trained and large in number labour has a positive association with rice production in malaysia. the trained and large quantity of labour enhances the production of the particular product, and the high quantity of labour related to the rice field enhances rice production. this output is similar to what laing et al. (2018) investigated that the high quantity of labour in the rural area can increase the production of a particular crop and enhance the country's economic augmented dickey-fuller test (adf) level t-statistics p-values rp i(0) -2.652 0.034 fms i(0) -2.655 0.031 irg i(0) -2.821 0.021 els i(1) -6.872 0.000 lab i(0) -2.721 0.025 cap i(1) -5.282 0.000 agbioforum, 24(1), 2022 | 56 abidin, haseeb, islam, and chiat. — the role of rural infrastructure, labour and capital investment on the rice production in malaysia growth. in addition, these results are also in line with ojo et al. (2020) also examined that the high quantity of labour always provides the best circumstances for the high level of rice production in the country. in addition, the results also explore that the high capital investment in rice crop production has a positive linkage with rice production in malaysia. the high capital investment brings opportunities for the former to apply the best seeds, irrigation systems, medicines, and other necessary facilities for rice production. these facilities provide high chances of an increase in the production of rice products in the country. this finding is consistent with bashir and yuliana's (2019) investigation, showing that significant capital investment supplied farmers with all the necessary facilities to increase agricultural yield in the country. additionally, these findings are consistent with those of asadi, alavijeh, and zilouei (2018), who discovered that large capital investment in any field gives all of the facilities necessary to boost production in the country, namely rice production. 5. implications and limitations the study made some theoretical advances by adding to the existing body of knowledge about rural infrastructure and rice production. additionally, this article contributes to the current literature on labour and rice production in malaysia. additionally, the current research investigated the literature on capital investment and rice output by supplementing it with malaysian data. additionally, the current analysis is one of the first to attempt to predict rice output using rural infrastructure, labour availability, and capital expenditure. the current research serves as a guide for regulators as they draught laws connected to increasing rice production through rural infrastructure, labour, and capital investment. the current article is also beneficial for future studies that intend to investigate this subject. the current article has some limitations, like the current study has taken only rural infrastructure, amount of labour and capital investment as the predictors and ignored the other factors and suggested that future studies should add these factors in their analysis. in addition, the present research also ignored the mediating and moderating impact in the framework and suggested that future studies should incorporate these aspects in their studies. finally, the current study has taken only rice production in malaysia and ignored other crops and suggested that future studies should add other crops in their studies. 6. acknowledgement *this research was supported by the ministry of higher education (mohe) of malaysia through fundamental research grant scheme (frgs/1/2019/ss08/uum/02/15). references abdul rahman, m. h., chen, s. s., abdul razak, p. r., abu bakar, n. a., shahrun, m. s., zin zawawi, n., . . . abdul talib, s. a. 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wang, 2019). when there are discrepancies or inaccuracies in a firm's financial statements, auditing becomes even more apparent. an auditor can assist management in identifying issues with bookkeeping that is out of date or out of order. if details are discovered that, indicate the existence of fraud or misconduct, the services of a forensic auditor are recommended. even within the auditing area, a speciality deals with instances that are on the verge of being illegal (liu, lan, chien, sadiq, & nawaz, 2022; noshfar, mohseni, & ghasemi, 2022). the efficiency of the accounting and auditing efficiency depends on the ability of human resources, technology adoption, and application of international accounting standards. if the human resources are trained well for accountancy or handling financial matters, the accounting and auditing activities can be facilitated and improved (qader et al., 2021; sun et al., 2021). accounting and mailto:nvhoacva@gmail.com mailto:duyenktdh@gmail.com mailto:vnhuyen@vnua.edu.vn mailto:hoangvuquang@hotmail.com mailto:vanhuong75hy@gmail.com mailto:camtunguyen238@gmail.com mailto:minhnguyetfuv@gmail.com mailto:duyenktdh@gmail.com agbioforum, 24(1), 2022 | 60 hoa, duyen, huyen, quang, huong, tu and nguyet. — impact of trained human resources, adoption of technology… auditing functions can be carried out manually or through technological systems. numerous technologies are available on the market and are primarily utilised in accounting and auditing procedures to track, record, and analyse financial operations and other business-related activities. these technologies allow businesses to enhance their accounting and auditing functions. (magablih, 2018). international accounting standards have been presented as internationally defined and admissible principles and standards according to which accounting practices must be performed. the application of international accounting standards helps attain improvement in accounting and auditing activities. the present study examines the influences of trained human resources, technology adoption, international accounting standards, and agricultural institutional support on improving accounting and auditing activities in vietnam. vietnam is a developing lower-middle-income economy with a gdp growth rate estimated to be $404.105 billion in 2022. agriculture is the country's significant economic sector, which contributes to the country's gdp at 18% rate. agriculture employs 43 per cent of vietnam's 92 million people, making it the country's largest employer ahead of services and industry (velte, 2019). agricultural input providers, farmer-producers, processor-distributors, and retailers are the four primary market entities in the agribusiness sub-sector. each of these businesses makes a unique contribution to the overall success of the agricultural system. the firms dealing in agriculture with its sub-sectors record their financial transactions through a proper strategy, intending to maintain a summarized statement that can present its economic strength in short in a single. preparing these records gives an overall view of the firms' risks and opportunities. many agricultural firms are still involved in following manual ways of accountancy and auditing, and traditional manual ways include the use of paper & pen and man's intellect (le et al., 2022). accounting and auditing technologies are being used in a few agricultural enterprises, although they are being implemented in a limited number of firms. (ha, nguyen, nguyen, & do, 2020). agriculture is a significant economic sector in vietnam, although the country lacks an accounting standard that defines basic accounting concepts in specialized agriculture, such as cultivation, and agricultural accounting standards are sparse and general. vietnam is preparing to implement the international financial reporting standards (ifrs), which necessitates the establishment of a vietnam accounting standard for agriculture. to increase the transparency and comparability of accounting data, vas on agricultural should be based on the concepts and principles of international accounting standards (ias), hence boosting the economy's competitiveness. (doan et al., 2022). vietnams' agriculture sector is one of the progressive economic sectors, but its contribution to the country's growth is limited because of the limited investment in this sector. the accounting and auditing accuracy and transparency could enhance the investment in this sector (tran, ha, le, & nguyen, 2019). the study's objective is to explore the role of trained human resources, technology adoption, international accounting standards, and improvement of accounting and auditing activities. it also aimed to identify the moderating influences of agricultural institutional support on the nexus between trained human resources, technology adoption, international accounting standards, agricultural institutional support, and improvement of accounting and auditing activities. this study makes a great addition to the literature. 1) this study aims to address efficiency in accounting and auditing practices quite the opposite of previous studies that have addressed accounting or auditing practices. 2) the prior studies have analyzed the impacts of trained human resources, technology adoption, international accounting standards, and the improvement of accounting and auditing activities in separate times. the present article adds to the literature with the simultaneous study of trained human resources, technology adoption, and international accounting standards that impact the improvement of accounting and auditing activities. 3) this study first addresses the agricultural institutional support as a moderator between the factors mentioned above and improving accounting and auditing activities. the remaining portion of the study has the following parts. the next part highlights literary arguments about the relationship between trained human resources, technology adoption, international accounting standards, and agricultural institutional support to improve accounting and auditing activities. the third section describes the approach used to gather data and analyse the validity of the variables chosen and their relationship. the study's findings are then compared to those of previous research to determine their validity. 2. literature review business firms need to maintain their reputation in society and the market for several reasons encouraging investment by attracting investors, retaining the marketing of goods and services, winning the heat of the general public, and support from corporate regulators and government. the legitimacy of the accounts prepared and their reputation and goodwill determine the auditing effectiveness of the firms. however, advancements in accounting and auditing methods are contingent upon the performance of human resources and the implementation of modern technologies. (mccarthy, kusaila, & grasso, 2019). the adoption of international accounting standards and agriculture institution support also plays a significant role in determining the accuracy of account and auditing practices. the role of trained human resources, adoption of technology, and adoption of international accounting standards, in the improvement of accounting and auditing activities, has been addressed in many studies. some of these studies are cited below for establishing hypotheses. sumaryati, praptika, and machmuddah (2020) examine the influences of trained human resources on improving agbioforum, 24(1), 2022 | 61 hoa, duyen, huyen, quang, huong, tu and nguyet. — impact of trained human resources, adoption of technology… accounting and auditing practices. accountants and auditors must be skilled in their work, whether they use manual processes or electronic recording and processing accounting and auditing operations. proficient accountants and auditors can be developed when human resource management offers training sessions for their staff in their specialized field. according to the findings, technology adoption positively impacts accounting and auditing activities. through empirical research yen, thuy, tien, and anh (2019) identify the effects of trained human resources on accounting and auditing efficiency. in the modern era, accounting and auditing practices must be performed by applying technological processes or technologies. for running these technologies and technologies, special expertise is needed. the trained human resources have this special expertise and can manage the accounting and auditing departments. tien, thuong, and yen (2019), compare the human resources, which are given periodical training classes and the human resources without the training in accounting and auditing processes. the study concludes that human resources who are trained for their respective roles in accounting and auditing departments contribute significantly to the improvement of accounting and auditing operations. on the basis of the foregoing explanation, we can conclude: h1: trained human resources positively impact the improvement of accounting and auditing activities. bonsón and bednárová (2019) investigated the impacts of blockchain technology on improvement in accounting and auditing. the authors collected data by reviewing the literature on the blockchain revolution in accountancy. blockchain technology has the characteristics of decentralization and transparency. the use of blockchain technology to record and store data about the business transactions distributes the data from the central authority to the overall network. the management at the different chain nodes can look at the data, track the changes, and take action. this forces transparency in accounts preparation and contributes to the improvement in auditing of the accounts. hence, adopting innovative technology assures improvement in accounting and auditing activities. schmitz and leoni (2019) conduct empirical research to determine the impact of technology adoption on accounting and auditing tasks. adopting the innovative technology recording, processing, and communicating the data about the business financial transactions reduces accounting errors such as data entry errors, omission errors, commission, transposition errors, compensating errors, duplication errors, and errors of entry reversal. the reduction of accounting errors improves the credibility of accounts and facilitates the undertaking of auditing practices. so, h2: adoption of technology positively impacts the improvement of accounting and auditing activities. malo-alain, aldoseri, and melegy (2021) conducted a piece of literature to investigate international standards for accounting impacts on the efficiency of accounting and auditing activities. the authors took international financial reporting standards (ifrs) as the proxy of international accounting standards. they examined the impacts of ifrs on accounting and auditing practices for two periods: the time during the year 2016 and the period from 2017 to 2018. the study implies that universally defined and accepted principles make it easy for the accounts officers to correctly understand and record financial transactions. additionally, when ifrs, or international accounting standards, are followed within a country, even outsiders understand which principles were applied to each entry and how to verify the accounts' correctness. this increases auditing efficiency. el-helaly, ntim, and soliman (2020) investigate the international financial reporting standards, or ifrs, and their contribution to the advancement of accounting and auditing standards. the data regarding the ifrs's contribution to the improvement in accounting and auditing standards were collected from interviews and secondary sources, focusing on the activities of issuing financial statements. the finds that the implementation of ifrs meets the corporate governance principles of responsibility, accountability, and transparency. so, with adoption of ifrs accounting practices can be improved and it makes easy to conduct a successful audit for the firm. hence: h3: adoption of international accounting standards positively impacts improving accounting and auditing activities. in an academic article, agyemang, acheampong, and akenten (2018) present their views about the relationship between agricultural institution support, trained human resources, and improvement of accounting and auditing activities. the study implies that in the country where the government considers the significance of the agriculture sector for sustainable economic development and provides support in all possible ways, it takes care of the employees' proficiency in the agricultural firms. thus, the agricultural institution's support maintains the training of human resources. proper training prepares employees to perform business practises efficiently, and individuals responsible for accounting and auditing business deals can operate more effectively inside the organisations after being trained. aggarwal and verma (2020), wrote about the relation between agricultural institutional support, trained human resources and improvement of accounting and auditing activities. they believe that the agriculture institutions support through economic incentives to the agricultural firms, encouraging them to bring improvement in the human resources management. with sufficient financial resources, frequent training sessions on innovation adoption can be conducted. accountants and auditors who have received training are better equipped to follow business operations, properly record them, analyse financial statements, and detect risk or fraud. on the basis of the foregoing talks, the following can be hypothesised: h4: agricultural institutional support is a moderator between trained human resources and accounting and agbioforum, 24(1), 2022 | 62 hoa, duyen, huyen, quang, huong, tu and nguyet. — impact of trained human resources, adoption of technology… auditing activities improvement. a study was conducted by maffei, casciello, and meucci (2021) to investigate the agricultural institutional support, adoption of technology and improvement of accounting and auditing activities. the study implies that when the agricultural institutions are permitted by local government, they are facilitated in getting awareness of change in different technologies and acquiring innovative technologies from the national or international market. the widespread understanding and adoption of innovative technologies have revolutionised business procedures in the modern world, including accounting and auditing activities primarily dependent on digital technologies. as a result of agriculture institution support, the technology adoption improves the accounting and auditing practices within the firm. the study of desplebin, lux, and petit (2021) throw light on the interrelationship between agricultural institutional support, adoption of technology and improvement of accounting and auditing activities. agricultural firms' economic, social, and moral support motivates them to adopt innovative technology and technological processes. similarly, agricultural enterprises must maintain correct records to provide precise and reliable information about their business activities, resources, and dealings with others. thus, farm institution support facilitates the adoption of new technologies and the improvement of accounting and auditing standards. as a result, we may speculate: h5: agricultural, institutional support modifies the adoption of technology and the improvement of accounting and auditing activities. maradona and chand (2018) discuss the relationship between agricultural, institutional assistance, international accounting standards adoption, and accounting and auditing activity improvement. they proclaim that the when some other entities like the local or national government, corporate agencies, and significant economic authorities provide support to the agriculture sector to boost this sector, they are more likely to make the international accounting standards implemented in the agricultural firm for thus, they can easily understand the business practices, its dealings contracts, plans, risks, and opportunities. additionally, supportive authorities monitor the firms' financial management and internal auditing. if they discover any difficulties, they attempt to resolve them, thereby improving accounting and auditing performance. thus, agricultural institutional support enhances the contribution of the adoption of international accounting standards to the improvement of accounting and auditing activities. the literary article of kamla and haque (2019) explains that when agriculture sector institutions are assisted in incorporating innovation into their resources or processes, they can improve their accounting and auditing departments and practices. as a result, adopting international accounting standards is simple, and accounting and auditing methods improve. bananuka, kadaali, mukyala, muramuzi, and namusobya (2019), also proclaim that agricultural institution support assists the adoption of international accounting standards, and the improvement of accounting and auditing activities improves their relation. hence: h6: adoption of international accounting standards and improving accounting and auditing activities. 3. research methods the study examines the impact of trained human resources, technology adoption, and adoption of international standards on the development of accounting and auditing activities in the agricultural sector, as well as the moderating effect of agricultural institutional support on the relationship between trained human resources, technology adoption, and adoption of international standards. the current article used questionnaires to elicit primary data from a sample of respondents. the employees of the accounting and auditing department of the agricultural sector are the respondents of the study. these respondents have been selected using simple random sampling. the researchers have used personal visits and emails to distribute the questionnaires to the respondents. the researchers have distributed around 522 surveys and returned only 293 surveys representing approximately 56.13 per cent response rate. the current research has applied the smart-pls to test the study's hypotheses. the smart-pls is a suitable statistical tool for primary data analysis (hair et al., 2021). it also operates effectively even if researchers have used large data sets or complex models (hair, risher, sarstedt, & ringle, 2019). in addition, three predictors have been taken as trained human resource (thr) with five items adapted from alshammari (2020), adoption of technology (at) with six items and extracted from shukla and sharma (2018) and adoption of international standards (ais) with eight items taken from suryanto and komalasari (2019). moreover, agricultural institutional support (agis) has been the moderating construct with six items from falahat, lee, ramayah, and soto-acosta (2020). finally, improved accounting and auditing activities (iaaa) have been used as the predictive variable taken from maffei et al. (2021). these variables are presented in figure 1. 4. research findings the present research has examined the correlation of the items using average variance extracted (ave), and figures indicated that the values are higher than 0.50 and indicate valid convergent validity. in addition, factor loadings values are higher than 0.50, which exposed valid content validity. finally, alpha values are more significant than 0.70, and composite reliability (cr) values are also larger than 0.70, indicating significant reliability. table 1 shows these figures. agbioforum, 24(1), 2022 | 63 hoa, duyen, huyen, quang, huong, tu and nguyet. — impact of trained human resources, adoption of technology… figure 1: research model table 1: convergent validity constructs items loadings alpha cr ave agricultural institutional support agis1 0.937 0.944 0.958 0.820 agis2 0.857 agis4 0.935 agis5 0.938 agis6 0.856 adoption of international standards ais1 0.930 0.975 0.979 0.871 ais2 0.946 ais3 0.935 ais4 0.941 ais6 0.944 ais7 0.901 ais8 0.936 adoption of technology at1 0.836 0.893 0.919 0.655 at2 0.853 at3 0.705 at4 0.760 at5 0.837 at6 0.853 improvement of accounting and auditing activities iaaa1 0.822 0.827 0.879 0.594 iaaa2 0.818 iaaa3 0.842 iaaa4 0.651 iaaa5 0.701 trained human resource thr1 0.864 0.899 0.929 0.766 thr3 0.876 thr4 0.882 thr5 0.880 the present research has also examined the variables' correlation using fornell larcker, and figures indicated that the values that show the association with the variable itself are higher than the values that show the association with other variables. these outcomes exposed valid discriminant validity. table 2 shows these figures. the present research has also examined the variables' correlation using cross-loadings, and figures indicated that the values that show the association with the variable itself are higher than the values that show the association with other variables. these outcomes exposed valid discriminant validity. table 3 shows these figures. trained human resource adoption of technology adoption of international standards agricultural institution support improvement of accounting and auditing activities agbioforum, 24(1), 2022 | 64 hoa, duyen, huyen, quang, huong, tu and nguyet. — impact of trained human resources, adoption of technology… the present research has also examined the correlation of the variables using the fornell larcker heterotrait monotrait (htmt) ratio, and figures indicated that the values are lower than 0.90. these outcomes exposed valid discriminant validity. table 4 shows these figures. table 3: cross-loadings agis ais at iaaa thr agis1 0.937 0.457 0.765 0.456 0.322 agis2 0.857 0.442 0.719 0.451 0.373 agis4 0.935 0.460 0.758 0.456 0.324 agis5 0.938 0.461 0.773 0.444 0.324 agis6 0.856 0.444 0.717 0.447 0.374 ais1 0.467 0.930 0.455 0.446 0.380 ais2 0.461 0.946 0.471 0.467 0.400 ais3 0.454 0.935 0.475 0.448 0.407 ais4 0.475 0.941 0.462 0.459 0.376 ais6 0.466 0.944 0.468 0.468 0.396 ais7 0.473 0.901 0.446 0.495 0.354 ais8 0.471 0.936 0.455 0.458 0.376 at1 0.662 0.388 0.836 0.409 0.330 at2 0.732 0.450 0.853 0.449 0.351 at3 0.541 0.317 0.705 0.391 0.329 at4 0.670 0.398 0.760 0.380 0.348 at5 0.661 0.382 0.837 0.406 0.332 at6 0.726 0.455 0.853 0.450 0.360 iaaa1 0.491 0.397 0.455 0.822 0.327 iaaa2 0.450 0.426 0.460 0.818 0.359 iaaa3 0.389 0.398 0.447 0.842 0.319 iaaa4 0.285 0.354 0.305 0.651 0.185 iaaa5 0.248 0.330 0.261 0.701 0.242 thr1 0.299 0.354 0.309 0.323 0.864 thr3 0.347 0.357 0.389 0.328 0.876 thr4 0.312 0.351 0.373 0.309 0.882 thr5 0.365 0.375 0.403 0.368 0.880 table 4: heterotrait monotrait ratio agis ais at iaaa thr agis ais 0.521 at 0.697 0.528 iaaa 0.548 0.551 0.582 thr 0.410 0.439 0.471 0.430 agbioforum, 24(1), 2022 | 65 hoa, duyen, huyen, quang, huong, tu and nguyet. — impact of trained human resources, adoption of technology… figure 2: measurement model assessment the results revealed that trained human resources, adoption of technology and adoption, and international standards positively impact and international standards positively impact the improvement of accounting and auditing activities in the agricultural sector and accept h1, h2 and h3. the findings also indicated that the agricultural institutional support significantly moderates among the linkage of trained human resources, technology adoption, international standards, and improvement of accounting and auditing activities in the agricultural sector and accepts h4, h5 and h6. table 5 shows these figures. table 5: a path analysis relationships beta s.d. t statistics p values l.l. u.l. ais -> iaaa 0.151 0.070 2.175 0.016 0.007 0.248 ais*agis -> iaaa -0.321 0.060 5.348 0.000 -0.428 -0.240 at -> iaaa 0.306 0.105 2.908 0.002 0.130 0.454 at*agis -> iaaa 0.152 0.081 1.883 0.031 0.016 0.289 thr -> iaaa 0.199 0.065 3.038 0.002 0.100 0.304 thr*agis -> iaaa 0.128 0.065 1.983 0.025 0.039 0.239 agbioforum, 24(1), 2022 | 66 hoa, duyen, huyen, quang, huong, tu and nguyet. — impact of trained human resources, adoption of technology… figure 3: structural model assessment figure 4: ais*agis agbioforum, 24(1), 2022 | 67 hoa, duyen, huyen, quang, huong, tu and nguyet. — impact of trained human resources, adoption of technology… figure 5: at*agis figure 6: thr*agis 5. discussions the results showed that trained human resources positively impact the improvement of accounting and auditing activities. these results are supported by alawi and belfaqih (2019), which examines how professional human resources effectively improve accounting and auditing activities within a firm. the study reveals that accounting and auditing contain technical practices maintained to learn the true nature of business transactions and determine firms' financial position and credibility. human resources trained to perform these technical practices improve the accounting and auditing processes. these results are also supported by aryanti and adhariani (2020), which highlight that whether the business firms apply manual processes or technological ways of recording and processing the accounting and auditing practices, the accountants and auditors must be proficient in their work. when human resource management organises training sessions for their staff, proficient accountants and auditors can be generated. the findings suggested that technology adoption has a beneficial effect on the improvement of accounting and auditing activities. these findings corroborate pimentel and boulianne's (2020) assertion that embracing technologies such as big data, data science, robotic process automation, machine learning, artificial intelligence, and blockchain enables accounting and auditing tasks to be more efficient. the results showed that the adoption of international accounting standards positively impacts the improvement of accounting and auditing activities. these results align with phan, joshi, agbioforum, 24(1), 2022 | 68 hoa, duyen, huyen, quang, huong, tu and nguyet. — impact of trained human resources, adoption of technology… and mascitelli (2018), which show that the international accounting standards focus on performing accounting practices so that all the financial transactions are adequately covered without missing any risks or future developmental activities. so, the goals of accounting and auditing can better be achieved. the results indicated that agricultural, institutional support moderates trained human resources and accounting and auditing activities improvement. these results agree with muhammad and nugraheni (2022) that agricultural institutional support to human resource management assists them to implement employees' training practices for performing their duties in specialized departments. when the accountants and auditors are trained in a firm, they can adequately handle the accounting and auditing activities. the results indicated that agricultural institutional support moderates’ technology adoption and improves accounting and auditing activities. these results match qasim and kharbat (2020), when the agricultural institutions provide financial support to the management, they can afford the technologies in all business areas. when firms have adopted technologies in accounting and auditing, they become able to improve accounting and auditing practices. the results indicated that agricultural institutional support moderates the adoption of international accounting standards and improves accounting and auditing activities. these results agree with al-nasrawi and thabit (2020), which reveals that when agricultural sector institutions are provided with support in adopting creativity in their resources or process, they can also bring changes in their accounting and auditing departments and their practices. so, it becomes easy to adopt international accounting standards and improve accounting and auditing practices. 6. implications the current work is significant theoretically because of its substantial contribution to the economics literature. the study's primary focus is on the agricultural sector's development toward improved accounting and auditing practices. this study examines the impacts of trained human resources, technology adoption, and international accounting standards on improving accounting and auditing activities. contrary to the prior studies, which have addressed the impacts of trained human resources, technology adoption, international accounting standards, and improvement of accounting and auditing activities separately for different times, the present simultaneous analysis contributes to the literature. it is one of the significant contributions of the study that it tries to explain the moderating role of agriculture institution support between trained human resources, adoption of technology, adoption of international accounting standards and improvement of accounting and auditing activities. the current study also has great significance in the practical field. this study is significant to all financial firms because it addresses accounting and auditing activities common to all firms. this study suggests that accounting and auditing activities improvement is possible if the employed human resources are trained, up-to-date technology is adopted, and international accounting standards are applied to accounting and auditing activities. additionally, the study indicates that with adequate support for agricultural institutions, skilled human resources, technology adoption, international accounting standards, and accounting and auditing operations become simple. 7. conclusions the authors aimed to check the effectiveness of trained human resources, technology adoption, and international accounting standards to improve accounting and auditing activities. they were also to prevent the contribution of agricultural institution support to trained human resources, technology adoption, international accounting standards, and improvement in accounting and auditing activities. the information about the agricultural institution support, trained human resources, technology adoption, international accounting standards and improvement of accounting and auditing activities, and their relationship was acquired from the vietnamese agricultural sector. authors found a positive relation between trained human resources, technology adoption, and international accounting standards in improving accounting and auditing activities. the results showed that accountants and auditors could better perform their procedures if the human resources have specialization and are trained for their specific practices. the results also revealed that adopting up-to-date technology for accounting and auditing besides manual processes could improve the accounting and auditing practices. adopting international accounting standards helps achieve accounting and auditing principles like transparency, responsibility, and accuracy. the study also concluded that agriculture institution support improves trained human resources, technology adoption, international accounting standards, and improved accounting and auditing activities and their association. 8. limitations the current study has several limitations, and future authors are expected to overcome these limitations. first, the study focuses on trained human resources, technology adoption, international accounting standards, and improvement of accounting and auditing activities. financial development, corporate governance, and firm size have utterly been ignored, though these factors deeply influence improvement in accounting and auditing activities. future studies must also discuss the impacts of these factors on improvement in accounting and auditing activities. moreover, only the agricultural sector in vietnam focuses on analyzing the role of trained human resources, adoption of technology, adoption of international standards, and improvement of accounting and auditing activities. further literature must 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business and technology (hubt) vinh tuy, hai ba trung, ha noi, vietnam thai van ha ha noi university of business and technology (hubt) vinh tuy, hai ba trung, ha noi, vietnam nguyen thi minh phuong vinh universitty, vinh city, vietnam thai thi kim oanh vinh universitty, vinh city, vietnam vương thị khanh huyen vietnam national university of agriculture (vnua) trauquy, gialam, hanoi, vietnam nguyen thi thuy vietnam national university of agriculture (vnua) trauquy, gialam, hanoi, vietnam the results of this study provide data on the logistics, scope, routes, channels, seasons, and the economy of illegal wildlife trade in the country and across vietnam. it investigates the main reasons for the continued illegal wildlife trade and highlights the key failures in vietnam and other concerned countries undertaking efforts to prevent and control it. this study identifies the most important wildlife trade routes in, and through vietnam. the study points out eight (8) causes of illegal wildlife trade, suggesting some economic regulation measures as well asten (10) specific and actionable policy recommendations. the report recommends that the government strengthen the capacity of responsible institutions to combat illegal trade practices. it also emphasizes the need to use education to discourage the people of vietnam fromconsuming illegal wildlife products. the report concludes that given the unprecedented scale of the problem, there is a need for strong institutional commitment and political will at all levels of government within vietname as well as effective international cooperation among asian countries in order to have a significant impact on controlling illegal wildlife trade in and through vietnam. key words: illegal; routes; revenue; profit; wildlife trade 1. introduction the economies of vietnam, china, and asian countries have grown rapidly over the recent years, leading to an increased demand for consumption of wildlife products. wildlife products are often used in the production of traditional medicines, pets, foods, jewelry items, decorations, handicrafts, displays, and gifts or considered as luxury products (van song, 2008). vietnam has transformed from a country mostly illegally exporting and transhipping wildlife commodities into a final destination that satisfies the demands of the emerging rich. outdated cuisine culture, “special dish” enjoyment and blind faith in "esoteric" remedies without scientific evidence, have put many rare wildlife species in jeopardy (reconciliation, 2018). vietnam has become an important center of trading, captive breeding, and consuming wildlife in asia (government, 2004). wildlife trading is developing with 40 species of coleopteran and 90 species of butterfly. besides 3,500 species of fauna and flora and about 20,000 tons of other flora have been used as medicine (government, 2004; ha & truong, 2003). in summing up, vietnam is one of the 10 most biodiverse countries in the world, accounting for 10% of known species, while its territorial area is just less than 1% of the earth's (nguyen, 2008). vietnam has been a rich source of wildlife in past years, but as it is, it has become an effervescent wildlife market that unfortunately serves as an important cross-bridge for illegal wildlife trade from the world to neighboring countries. although the vietnamese government and international conservation organizations have made rigorous efforts to combat illegal wildlife trade in the past, the problem endures and continues to cause adverse and negative impacts on the wildlife and biodiversity of vietnam. in general, this study tracks the illegal wildlife trade supply chains in, and through vietnam; and proposes effective solutions to limit illegal wildlife trade in vietnam. to estimate illegal wildlife trade, and to track the illegal wildlife trade supply chains in, and through vietnam; to identify limitations for effective implementation and enforcement of wildlife protection policies; to provide recommendations for effective implementation, enforcement, and management of wildlife in vietnam. 2. literature reviews drury (2011) concludes that “wild meat is the product most commonly reported to be consumed, predominantly by successful, high-income, high-status males of all ages and educational levels and is used as a medium to communicate prestige and obtain social leverage”. the harvest of wildlife through hunting, trapping and snaring is illegal in vietnam but nevertheless, remains widespread and is understood to be a major threat to many species mailto:vungochuyen.vnua@gmail.com agbioforum, 21(3), 2019 | 36 song, huyen, tien, ha, phuong, oanh, huyen and thuy. — vietnam, the big market and cross bridges of illegal wildlife trade in asia (macmillan & nguyen, 2014). study results of sandalj, treydte, and ziegler (2016) conclude that increasing urban wild meat consumption in vietnam poses a major threat to faunal biodiversity, especially in light of the fact that southeast asia is a georgrapgical region that supports more threatened species than any other comparable continental area (gray et al., 2018). the several studies uses mixed social science approaches to understand the motivations driving consumers of bear products for medicine in vietnam, and of traditional medicine practitioners who may be influencing consumers. they provide current information about the ways bear products are used in the two largest cities of vietnam: hanoi and ho chi minh city. trade of turtles, for both food and pet, represents a substantial business in vietnam, especially because this country is a cross-bridge for wildlife trade from indochina to china (van et al., 2019). in hanoi, it is generally purchased by the individual for self-use, while in ho chi minh city it is generally purchased as a gift. they suggest that conservation organizations should focus on behavior change campaigns that are informed by the results”. it is clear that the demand for endangered wildlife species is increasing rapidly in east asia (hanley, sheremet, bozzola, kasterine, & macmillan, 2016). among the wildlife species illegally traded, more than half of them are mammals and reptiles. wildlife trade products can be leather, pharmaceuticals, and meat via air routes (petrossian, pires, & van uhm, 2016). according to (hanley et al., 2016), rhino horn consumption in vietnam showed that wild rhino horns are preferred and paid the highest price by the richest people. besides, tigers are also one of the most endangered wildlife species in the world (abbott & van kooten, 2011; begum & gill, 2014), with the number of wild tigers decreasingfrom 100,000 in the turn of 20th century to about 3,000-5,0000 tigers today (worden & rees, 2011). adb (2014) emphasized that wildlife trafficking is a transnational and organized crime. therefore, countries need to seek comprehensive measures including policy and market tools to protect their own wildlife resources as well as the biodiversity of local ecosystems (agarwal, 2015; azam, jayasuriya, musthafa, & marikar, 2016). the solution to reduce consumer demand in countries that are major importers of wildlife products is one such initiative (hanley et al., 2016; lyons & natusch, 2013; wyatt, 2017). besides, for tigers, the establishment of tiger farms in china to meet the needs of the market (abbott & van kooten, 2011) or the protection of wild tigers in india can be conducted by local communities (begum & gill, 2014). similarly, hunting tourism in namibia (schmitt & rempel, 2019) is also another solution proposed by researchers to limit hunting and illegal trading of wildlife products. 3. methodology 3.1 data collection collecting and surveying primary data for this study is a potentially danergous and controversial process. researchers and interviewers have to plays the role of consumers in the interview (real bargaining, buying, eating, and so on). hot spots on illegal wildlife trade in vietnam have been surveyed. the provinces with borders with cambodia, laos, and china such as can tho, ha tinh, nghe an, quang nam, lang son, lao cai, and quang ninh are also investigated and consumed channels. in addition, the customs of the two border gates of two large airports from abroad to vietnam and from vietnam to foreign countries are also explored and investigated, namely tan son nhat and noi bai airports. to investigate the channels, where living wildlife and wildlife products are traded through the sea, hai phong and vung tau harbors have been investigated. for the domestic markets and domestic wildlife trade channels, most of the main data are collected from wildlife wholesalers and retailers, hunters, consumers, forest protection department staff, police officers, customs officers, and market management, and in research areas through individual interviews using a structured interview schedule. data is also collected from vietnamese traditional medicine stores, tourist souvenir shops, traditional medicine manufacturers, hotels, restaurants serving wildlife dishes, and middlemen. the two major markets for wildlife consumption and wildlife products are hanoi and ho chi minh cities. in addition, scientists, drivers, biologists, heads of cites, world wildlife fund, traffic, international animals and plants, united nations development program staff, and authorities, etc. are also interviewed for necessary information. the volume of product “j” is obtained by multiplying the number of traders of live wildlife/number of restaurants in local areas/number of stuffed wildlife shop in the street with the average amount of product “j” sold per period of time (daily, monthly). the total amount of respondents is 171 interviewees of 20 wildlife hot-spot provinces or cities. 3.2 estimated approaches a) estimated total supply of illegal live and wildlife products tsj = ∑ tij 𝑛 𝑖=1 where: i = 1 . . . n (number of traders on the market) j = 1 . . . m (number of wildlife species on the market) tsj is the total existing supply of illegal live wildlife or dry products (j) in the markets (in unit, head, or kg) tij is a wildlife product or a live wildlife “j” sold by trader “i” (live wildlife trader, souvenir shops, and medicine agbioforum, 21(3), 2019 | 37 song, huyen, tien, ha, phuong, oanh, huyen and thuy. — vietnam, the big market and cross bridges of illegal wildlife trade in asia shops). note: total supply of illegal live and wildlife products are estimated daily, and then converted to yearly. b) estimated total supply of wildlife meat in the markets 𝑇𝑀𝑆 = ∑ (𝑁𝑅𝑖 ∗ 𝑆𝑀𝑖𝑛 𝑖=1 ) where: i = 3 (small, medium, and large restaurants); tms refers to the total wildlife meat supply per day of the market (kg); nri is number of restaurants with scale (i); ami is average amount of wildlife meat sold per day (kg). c) estimated total revenue from live wildlife, wildlife meat, dry, and stuffed products in the markets 𝑇𝑅 = ∑ tsj ∗ apjn j where: tr is the total revenue from live species or wildlife meat restaurant, dry product, or stuffed product(s) in the market in a period of time; tsj is the total existing supply of illegal live wildlife or meat wildlife or dry products (j) in the markets (in unit, head, or kg); apj is the average price of live species, wildlife meat, or dry product (j). note: total revenue from live wildlife, wildlife meat, dry, and stuffed products are estimated daily, and then converted to yearly. d) estimated total profit from live, wildlife meat, souvenir, and stuffed wildlife markets due to the nature of illegal wildlife trade and the limited data available, the method used to estimate the profit of live, wildlife meat restaurant, souvenir, and stuffed wildlife markets is as follows: pr = tr*arp where: pr is the profit of live wildlife/wildlife meat restaurant/ wildlife souvenir/and stuffed wildlife markets; tr is the total revenue of live species/wildlife meat restaurant/wildlife souvenir/and stuffed wildlife markets in a period of time (per day and per month for souvenir and stuffed markets); arp is the average rate of profit (in percent) of the product ar the market obtained from key informants. note: details on costs could not be obtained from the traders. note: total profit from live wildlife, wildlife meat, dry, and stuffed products is estimated daily, and then converted to yearly. 4. results and discussions 4.1 violation and confiscated cases, amount of illegal wildlife trade in vietnam from 2013 to 2017 according to the collected and synthesized results, for the years 2013 to 2017, competent authorities have detected and seized 1,504 offenses with 1,461 offenders to wildlife protection laws. many wildlife species have been illegally transported and traded during this period. total revenue of fine for wildlife violations is 16,000 million vnd (about 700,000 usd) (table 1). table 1. wildlife crime in vietnam in the period of 2013 2017 discription unit amount violation cases case 1,504 amount wildlife and products from wildlife were confiscated kg and head 41,328 offenders of wildlife regulations violated person 1,461 monetary fine for wildlife violations million vnd 16,000 source: wildlife conservation society vietnam (wcs) (2018) exchange rate: 23,200 vnd = 1usd a large proportion of endangered species has been identified, including pangolins, snakes, birds of all kinds, and turtles. offenses particularly related to exotic animal species brought to vietnam such as rhinos, elephants, pangolins account for 13.5% (203/1,504) of the total offenses; 7.43% (1,949/26,221) of the total number of wildlife individuals are seized and 44.64% (18,450/41,328 kg) of the total wildlife volume has been confiscated agbioforum, 21(3), 2019 | 38 song, huyen, tien, ha, phuong, oanh, huyen and thuy. — vietnam, the big market and cross bridges of illegal wildlife trade in asia (figure 1 and figure 2). data on the types of crimes related to illegal wildlife trading, illegal wildlife captivating, illegal wildlife poaching, and illegal wildlife transporting are shown in figure 3. this study finds that most of the violations are involved in transportation and illegal trade in wildlife species. illegal trading (25.6%) and transportation (59.27%) account for 85% of violations (figure 3). 5 5 % 1 2 .1 0 % 1 0 .3 1 % 8 .5 8 % 7 .9 8 % 7 .5 1 % 7 .3 8 % 7 .3 1 % 7 .0 5 % 3 .3 9 % 2 .7 3 % 1 .6 6 % 1 .5 3 % 0 50 100 150 200 250 300 350 s n a k e, p y th o n o th er s t u rt le s b ir d s p ri m at es v iv er ri d s, m u st el id ae p an g o li n s s m al l m am m al s l ar g e m am m al s e le p h a n ts r h in o s t ig er s w il d c at s 2 3 .5 5 % 2 0 .1 7 % 1 6 .6 9 % 1 0 .6 7 % 9 .4 2 % 5 .4 9 % 3 .3 2 % 2 .9 6 % 2 .2 8 % 1 .9 7 % 1 .1 1 % 0 .9 2 % 0 .5 8 % 2000 4000 6000 8000 10000 figure 2. total weight of seized species from 2013 to 2017 in vietnam source: wildlife conservation society vietnam (wcs) (2018) n u m b er o f ca se s figure 1. amount and percentage of violation case, in terms of wildlife species source: wildlife conservation society vietnam (wcs) (2018) a m o u n t o f w ei g h t (k g ) agbioforum, 21(3), 2019 | 39 song, huyen, tien, ha, phuong, oanh, huyen and thuy. — vietnam, the big market and cross bridges of illegal wildlife trade in asia the majority of the penalties are suspended sentences (57.41%) and imprisonment (37.50%), accounting for 95% of crimes. 12-36 months’ imprisonments made up 53.1% of all the imprisonments (figure 4). figure 4. penalties source: wildlife conservation society vietnam (wcs) (2018) the hot spots of wildlife crimes in vietnam are concentrated mainly in big cities like hanoi and ho chi minh city, or border areas such as mong cai city in quang ninh province (adjacent to china), que phong district in nghe an province and da krong district in quang tri province (adjacent to laos), an giang province and tay ninh province (adjacent to cambodia). analyses by species shows that pangolin-related crimes are common suspended sentences 57.41% non-custodial reform 3.47% monetary fine 1.62% 12-36 months 53.09% <12 months 41.36% >36 months 5.56% imprisonment 37.50% figure 3. wildlife crimes in first instance courts source: wildlife conservation society vietnam (wcs) (2018) agbioforum, 21(3), 2019 | 40 song, huyen, tien, ha, phuong, oanh, huyen and thuy. — vietnam, the big market and cross bridges of illegal wildlife trade in asia in northern coastal provinces. meanwhile, rhino horns and ivory are illegally traded in large cities via aircraft or along major border gates adjacent to china. in terms of origin, trafficked wildlife species originating from africa account for more than 50% (19/38) of the total offenses recorded, of which angola accounts for the largest 26.32% (5/19). 4.2 estimated total amount and revenue of wildlife trade in domestic markets 4.3 the illegal live wildlife trade there are about 90 live wildlife traders in the three subsites. the total estimated revenue and profit of live wildlife markets in the three subsites are vnd 200.1 billion (us$8.6 million) and vnd 30 billion (us$1.3 million) per year, respectively. of these, hanoi and ho chi minh cities have the biggest value of live wildlife trade (table 2). the best-selling species in hanoi markets are birds and snakes. an endangered and expensive species in vietnam is the golden turtle, which has a price per kg of vnd 140 million to vnd 150 million (us$6,000 us$7,000). however, since this species is also considered critically threatened, this is a higher risk of getting caught. table 2. the estimated results of illegal live wildlife trade in the three subsites and vietnam subsites & vietnam number of traders live wildlife trade total revenue total profit per day (vnd million) per year (vnd million) per day (vnd million) per year (vnd million) north 36 205.2 74,898.0 30.8 11,234.7 central 22 129.0 47,085.0 19.4 7,062.8 south 33 214.2 78,183.0 32.1 11,727.5 total in vietnam 91 548.4 200,166.0 82.3 30,024.9 4.4 meat wildlife trade vietnamese, chinese, japanese, and other people in asian countries are fond of eating. they believe that eating and drinking wildlife as well as taking medicines dervived from wildlife products helps portray them as aristocratic people. there are about 950 wildlife meat restaurants in vietnam, which consume 2,240 tons of wildlife meat per year. the total revenue and profit are vnd 1,142 billion (us$ 49.2 million) and vnd 314 billion (us$ 13.5 million), respectively. the north and the south consume higher amounts of wildlife meat than the central. wildlife meat is mostly brought in from plateau, laos, central, south, mekong river delta, quang nam province, cambodia, myanmar, malaysia, and indonesia. picture 1. giant bird market in hanoi city (source: tam an, 2019) picture 2. bird seller in mekong river delta (source: ngoc trinh, 2020) agbioforum, 21(3), 2019 | 41 song, huyen, tien, ha, phuong, oanh, huyen and thuy. — vietnam, the big market and cross bridges of illegal wildlife trade in asia table 3. the estimated results of illegal wildlife meat trade in the three subsites and vietnam subsites and vietnam nunber of restaurants average amount of wildlife meat comsumed per year (tons) total revenue per year (vnd billion) total profit per year (vnd billion) sources of wildlife north 306 803 530 136 plateau; laos; central; south; mekong river delta; quang nam province; protected areas, cambodia; myanmar; malaysia; and indonesia. central 297 647 291 85 south 345 785 321 93 total in vietnam 948 2,235 1,142 314 4.5 dried wildlife trade there are about 24 kinds of products made from wildlife parts on sale in hang gai and hang trong of ha noi. the popular “dry products” are tiger teeth, bear teeth, artistic goods, turtle shell artistic products, and sea turtle (table 4). the estimated revenue and profit from wildlife dry products and artistic shops are vnd 787.9 million (us$ 33,961) and vnd 94.6 million (us$ 4,078) per year, respectively. at dong khoi, which is located near cau mong wildlife market, there are about 12 shops that sell wildlife products. the estimated revenue and profit of wildlife products along dong khoi street are about vnd 4.457 million (us$ 192,130) and vnd 534.9 million (us$ 23,055) per year, respectively. table 4. the revenue and profit of wildlife dry products on sale in souvenir shops in hanoi and ho chi minh cities hanoi city ho chi minh city item price (vnd 1,000) tr per year (vnd 1,000) tpr per year (vnd 1,000) item price (vnd 1,000) tr per year (vnd 1,000) tpr per year (vnd 1,000) tiger small teeth 500 31,500 3,780 tiger teeth 2,000 57,600 6,900 tiger big teeth 1,000 36,000 4,320 tiger claws 625 36,000 4,320 tiger claws 425 31,860 3,825 tiger skin 18,750 bear claws 225 23,610 2,850 bear claws 300 15,120 1,800 bear teeth 500 48,000 5,760 sorrow horn 18,750 540,000 64,800 ivory small buddha statue 1,575 217,350 26,070 elephant ivory buddha statue 1,875 697,500 83,700 ivory medium buddha statue 1,800 81,000 9,720 elephant ivory cigarette holder 2,500 24,000 2,880 ivory small boat 893 13,380 1,620 elephant ivory bangle 12,500 150,000 18,000 ivory necklace 4,875 58,500 7,020 elephant ivory chopsticks (pairs) 3,000 72,000 8,640 ivory small chimney of lamp 16,875 lizard skin purse 3,750 81,000 9,720 ivory medium chimney of lamp 29,250 civet skin 8,750 84,000 10,080 ivory big chimney of lamp 51,750 rhino skin (per kg) 5,250 315,000 37,800 picture 3. wildlife meat restausant picture 4: wildlife meat restausant picture 5: wildlife meat restausant in ha noi city in da nang city in thanh hoa province (source: my hang, 2020) (source: chi nhan, 2020) (source:quach du, 2021) agbioforum, 21(3), 2019 | 42 song, huyen, tien, ha, phuong, oanh, huyen and thuy. — vietnam, the big market and cross bridges of illegal wildlife trade in asia turtle big bangle 225 27,000 3,240 leopard skin 21,250 102,000 12,240 turtle small bangle 175 18,390 2,220 suitcase, part in leopard skin 8,750 252,000 30,240 turtle women comb 300 22,500 2,700 turtle bangle 938 315,000 37,800 turle men comb 175 7,890 960 turtle spectacle frames 9,000 475,200 57,030 turtle knife 250 15,000 1,800 turtle cigarette hold box 1125 121,500 14,580 turtle earring 88 11,010 1,320 turtle comb 350 142,800 17,130 turtle mouse tail long necklace 500 22,500 2,700 turtle knife 375 27,000 3,240 turtle mouse tail short necklace 425 25,500 3,060 turtle fan with shell ribs 9,375 810,000 97,200 turtle big hair-pin 113 4,050 486 turtle cigarette lighter 825 23,760 2,850 turtle small hair-pin 63 2,820 330 turtle glasses frame 863 115,920 13,920 whole dry small sea turtle 2,500 15,000 1,800 0 whole dry medium sea turtle 5,000 75,000 9,000 0 total 787,860 94,581 4,457,400 534,870 the results in table 5 show that the estimated total revenue and profit of illegal dry wildlife products trade are about vnd 1,093 billion (us$ 47.1 million) and vnd 273 billion (us$ 11.8 million). most of these products are brought in from plateau, laos, mekong river delta, quang nam province, cambodia, myanmar, malaysia, indonesia, european countries, african countries, and russia. table 5. the estimated results of dry wildlife products trade market kind of product and place tr per year (vnd billion) tpr per year (vnd billion) source of products hanoi souvenir 24 7.88 1.97 plateau; laos; central; south; mekong river delta; quang nam; protected areas, cambodia; myanmar; malaysia; indonesia; european countries; african countries; russia. hcmct souvenir 21 44.57 11.14 hanoi 22.05 5.51 tiger bone balm vinh 10.25 2.56 hcmct 36.00 9.00 bear bile hanoi 468.75 117.19 vinh 400.00 100.00 hcmct 103.13 25.78 total 1,092.63 273.16 table 6 shows that the estimated total revenue and profit of illegal stuffed wildlife trade are about vnd 15.2 billion (us$655,170) and vnd 3.68 billion (us$158,620), respectively. the total profit from live, meat, dry, and stuffed markets in vietnam is estimated at vnd 621 billion (us $ 27 million) (table 7). of which, the meat wildlife market and dry wildlife market account for 95% (587/621). compared with the fine for five (5) years from 2013-2017, vnd16 billion (us$ 690,000) (table 1), the profit from the domestic wildlife trade is 188 times that of the fine. this is evidence of why the phenomenon of illiegal wildlife trade remaisn widespread and popular despite the efforts undertaken by the vietnamese government to prevent and control the practice. picture 6. tiger skill trade in nghe an province picture 7: dry and stuffed wildlife trade in dak nong province (source: duc ngoc, 2017) (source: thu hanh, 2013) agbioforum, 21(3), 2019 | 43 song, huyen, tien, ha, phuong, oanh, huyen and thuy. — vietnam, the big market and cross bridges of illegal wildlife trade in asia 4.6 stuffed wildlife trade table 6. the estimated results of stuffed wildlife in hanoi, hai phong, and hcmct market quantity (pecies) tr per year (vnd billion) tpr per year (vnd billion) source of products hanoi 420 5.77 1.44 plateau; laos; central; south; mekong river delta; quang nam; protected areas, cambodia; myanmar; malaysia; indonesia; european countries; african countries; russia. hai phong 396 4.28 1.07 ho chi minh city 516 5.17 1.29 total 1,332 15.22 3.68 table 7. summed up estimated profit of live, meat, dry, stuffed markets in vietnam market profit per year vnd million us$ live wildlife market 30,100 1,297,414 meat wildlife market 314,000 13,534,483 dry wildlife market 273,160 11,774,138 stuffed wildlife market 3,680 158,621 total 620,940 26,764,656 4.7 routes of illegal wildlife trade in, out vietnam by roads, the targets of the wildlifes transport directions are hanoi city and ho chi minh city. the transportation routes from laos and cambodia all cross the northwestern borders of vietnam, follow the trails highway 1 and then transport goods to major cities such as hanoi, ho chi minh city, hai phong, da nang for domestic consumption, or onward shipping to east asian countries such as korea, japan, taiwan and china. by air, wildlifes are transported mainly with processed products or dried products; these products are brought in from abroad through noi bai airports in hanoi, and tan son nhat airport in ho chi minh city, and then consumed domestically or shipped to china or east asian countries such as taiwan, japan, and korea. by the sea, wildlifes transported by the sea can be live wildlifes or their products. these wildlifes’ products are shipped to hai phong, da nang, cam ranh, and vung tau ports; and then, they are shipped to the north or to china or to east asian countries. (figure 5) 4.8 causes for the intensification of illegal wildlife trade first, high benefit from wildlife trade: consumption demand for wildlife and wildlife products has increased due to the economic development of asian countries, which leads to an increase in the prices and profits associated with wildlife trade. second, many issued policies but the enforcement process was ineffective: vietnam as well as international organizations have issued many policies to limit illegal wildlife trade; however, the enforcement process remains ineffective due to many reasons including overlapping policies. third, lack of resources for enforcement: although many policies have been enacted, only limited resources are available for implementation of these laws and policies. for example, lack of rangers oroutdated monitoring tools. fourth, inefficiency of cooperation between neighboring countries and international organizations it is important to ntoe that thereis not only ineffcienct cooperation among inspection forces and local government with fpd staff but also a lack of international cooperation on reducing illegal wildlife trade between vietnam, laos, cambodia, thailand, singapore, myanmar, malaysia, indonesia, philippines, and china. some national and international organizations in vietnam share an objective to combat trade in endangered wildlife; however, there is a glaring lack of integral and wellcoordinated efforts in this regard. in particular, there is no close connection between policymakers and policy performers regarding wildlife protection. fifth, government bureaucracy, and corruption: it is not clear who is responsible for managing a particular area. for example, the ministry of agriculture and rural develoment usually manages protected areas but local government units (commune, district, and provincial, military) also carry the mandate to manage the land falling under their jurisdiction. there are also a number of different government departments that can influence them (e.g., for tourism, road construction, army). agbioforum, 21(3), 2019 | 44 song, huyen, tien, ha, phuong, oanh, huyen and thuy. — vietnam, the big market and cross bridges of illegal wildlife trade in asia therefore, many different institutions and offices have different, someyimes overlapping, powers over a particular area (e.g., protected areas). thus, there are many government departments with vague responsibilities. this creates opportunities for corruption and may lead to a wastage natural resources such as common property rights or public goods. the large illegal wildlife trade networks are helped by influential people. these individuals areinvolved in the legal procedure for the confiscated goods and can acquit or interfere with the illegal cases. in early july 2014, the police department of kbang district – gia lai province caught the ranger illegal transporting timber for loggers (dac, 2014). sixth, habit and culture: the wildlife eating and drinking culture in vietnam or south east asian countries, in terms of the wildlife eating and drinking and customary use of wildlife in disease treatment characteristic of the of confucianistic culture of asian countries such as vietnam, china, korea, japan, taiwan, and singapore, are important factors that contribute to an increased demand for, and higher profitability from, wildlife trade in the region. seventh, poverty factors: the vice chief of ha tinh, nghe an fpd said that 30% of the local people depend on the forest for their livelihood. a local hunter in natureprotected areas in ha tinh, quang nam, nghe an said that if he did not hunt wildlife, he would not be able to earn a living. the manager of vu quang protected area in ha tinh province said that hunters and traders’ priority is to ensure that their children does not die of starvation as opposed to worrying about whether trees should be cut or wildlife should be killed. 4.9 economic regulatory measures and policy recommendations 4.9.1 economic regulatory measures economic regulations (e.g., penalty, taxation, and others) should be applied simultaneously. quota on illgal wildlife trade: quota regulations should be applied only if there is a proper legal regime and monitoring system to regulating wildlife trade in vietnam. in vietnam’s case, the quantity control regulations may not be efficient because of these reasons: sources of wildlife traded in vietnam are from various regions and countries (plateau; laos; central; south; mekong river delta; quang nam; nuture protected areas, cambodia; myanmar; malaysia; indonesia; european countries; african countries; and russia). the second reason is that china china china east sea east sea east sea hanoi hcm city figure 5. routes of illegal wildlife trade in, into, out vietnam by roads by airlines by sea agbioforum, 21(3), 2019 | 45 song, huyen, tien, ha, phuong, oanh, huyen and thuy. — vietnam, the big market and cross bridges of illegal wildlife trade in asia wildlife trade is not only focused on live wildlife but also on wildlife meat, dry wildlife products, and stuffed wildlife products. therefore, defining the efficiency of the wildlife population in the region is particularly challenging. taxations: the estimated profit from domestic illegal wildlife trade (table 7) is estimated at 188 times higher than the fine collection (table 1). this means that even if the fine is doubled from its current rate, the illegal traders may still find it profitable. therefore, high taxes will not discourage traders in the illegal wildlife trade. the penalty regulation: in recent years, the government has imposed a strict fine (figure 3 and figure 4 of section 4.1). however, even with these strict penalties (figure 4), there is little incentive to control illegal activities because only a small rate (3.1% of illegal trade can be captured nguyen, 2008). therefore, there is a need to increase efforts to capture more illegal operations and to increase fines in order to deter offenders. 4.9.2 policy recommendations first, completing and ensuring the consistency of the legal document systems, mechanisms, and policies in wildlife protection; and reviewing, amending and supplementing legal and policy frameworks to eliminate the inadequacies and inconsistencies between legal documents pertaining to wildlife protection. second, strengthening the implementation of penalties and enhanced monitoring and enforcement capacity can play a key role in the prevention and control of illegal wildlife trade. it has been shown in the current study that economic measures such as taxation, quota, legalization, and ownerships may not be appropriate to control illegal wildlife trading. the handling of material evidence of wildlife products remains inadequate. law enforcement agencies are not equipped with the right facilities and specialized preservation equipment such as freezers to preserve the exhibit of meat, bone and horn. this issue may be addressed by increasing the level of training, manpower, funding, and equipment for checkpoints and patrol forces. this study shows that mong cai quang ninh, lang son (exit points), ninh binh (bottleneck), hanoi, and ho chi minh city are critical nodes and markets for illegal wildlife trade in and out of vietnam. therefore, the patrol force should be given priority in terms of strengthening manpower, funding, and equipment. third, fpd, policemen should pay more attention to wildlife meat restaurants in domestic markets and the border between vietnam and china: there are more than 3,500 tonnes of live wildlife traded in and out of vietnam per year (nguyen, 2008), of which about half is consumed domestically. fourth, using education and awareness campaigns to influence the wildlife eating and drinking culture of the vietnamese people. in the long run, reducing the illegal wildlife trade depends on a combination of law enforcement to reduce supply and public education campaigns to decrease demand. information campaigns to discourage wildlife trade should be targeted at people who set bad examples by patronizing the trade. chiefs of communes and border policemen also participate in illegal wildlife hunting and trading. the media should be used to reach out to citizens and communities with a view to reduce the demand for wildlife products. sixth, law enforcement agencies should work closely to develop an interdisciplinary cooperation mechanism, enhance the exchange of information and participatory roles, and coordinate to implement conservation laws and policies through law enforcement activities working against wildlife trade. this should also involve efforts to strengthen cross-border cooperation between laos, cambodia, vietnam, and china on local, regional, and international levels to mitigate the problem. this study shows that most of the wildlife traded in or through vietnam to china has actually been taken from countries such as laos, cambodia, and myanmar. dialogs on cooperation to limit smuggling along borders should be held between neighboring countries and followed up by concrete actions. policies to support such actions should be formulated, duly signed, and approved by all countries concerned. this action can be done through cites. seventh, mobilizing domestic and international resources to enforce international treaties and conventions seeking to regulate wildlife conservation through regional and global cooperation. this entails strengthening manpower, generating funding, and providing equipment to monitor and control illegal trading during the peak season: the peak season for wildlife trading is from august to march, when the volume of illegal wildlife increases 2 to 3 times. eighth, using wildlife farming/culture as one way to reduce prices of wildlife products: to reduce the demand for wildlife products, the authorities could encourage farming of more common species of wildlife (such as crocodile, soft-shell turtle, and common snakes) that can can stay healthy and reproduce in man-made conditions. however, keeping and extracting wildlife that cannot reproduce in man-made conditions, including endangered turtle species, bears, and tigers, needs to be strictly prohibited. ninth, creating sustainable livelihood for local communities to reduce pressure from poaching, shooting, catching and trapping wildlife species, especially for those who live near forest areas, which is the initial step of illegal wildlife trade. simultaneously, guiding and encouraging local communities living in buffer zones of national parks, nature reserves and protection forests to engage in wildlife protection, contributing to in situ conservation of wildlife species. tenth, using incentives (both cash and non-cash) for regulators, patrol officers, and informants to intensify efforts against illegal wildlife trading: the average salary of fpd staff ranges from us$200 to us$450 per month. agbioforum, 21(3), 2019 | 46 song, huyen, tien, ha, phuong, oanh, huyen and thuy. — vietnam, the big market and cross bridges of illegal wildlife trade in asia on average, each fpd staff and direct fpd staff have to be responsible for 1,000 and 1,500 ha of forest, respectively. it is impossible to cover such a vast area effectively. this is an important factor that is encouraging not only illegal traders but also inspectors to violate wildlife protection policies and join hands with illegal traders. 5. summary and conclusion vietnam is not only a big market but also a corss-bridge of illegal trade. illegal wildlife trade is continuing unabated and affects neighboring countries. the total revenue generated from fines imposed against wildlife violations is 16,000 million vnd (about 700,000 usd). it merits to note that the largest volume of illegal wildlife trade is through the vietnam-china border. most of the wildlife live and wildlife products are passed though china via mong cai border, quang ninh province. the total profit from live, meat, dry, stuffed markets in vietnam is estimated at vnd 621 billion (us $ 27 million) per year. of which, meat wildlife market and dry wildlife market account for 95%. compared with the fine for five (5) years from 2013-2017, vnd 16 billion (us $ 690,000), the profit from the domestic wildlife trade is 188 times that of the fine. the routes of illegal wildlife trade in and out vietnam are by roads, by airlines and by sea. however, the most important route is by road, accounting for about 90% of illegal wildlife trade in, and out of vietnam. road 1a from ho chi minh city to hanoi and from hanoi to mong cai and lang song customs gates is the most important route of illegal wildlife trade in vietnam and to china. international routes of illegal wildlife trade from myanmar, malaysia, indonesia, european countries, african countries, russia into vietnam are through air and sea. most wildlife trade amounts by air or sea are dry wildlife products. the main factors that facilitate illegal wildlife trading in vietnam include high domestic and international demand for wildlife meat and products; illegal wildlife trade is highly profitable; the low priority placed on wildlife protection; lax implementation of wildlife protection laws and policies by authorities; and lack of fpd manpower, funding, and equipment. ten (10) actions and policies are recommended to obtain a significant reduction in illegal wildlife trade in vietnam and the region. acknowledgments our greatest appreciation goes to the collaboration of the experts, policemen, pdf staff, vietnamese cites, and wildlife conservation society office in ha noi. we sincerely thank them all very much. references abbott, b., & van kooten, g. c. 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(2017). how corruption enables wildlife trafficking. in corruption, natural resources and development (pp. 192): edward elgar publishing. http://www.nature.org.vn/ agbioforum, 24(2): 58-64. ©2022 agbioforum technical efficiency of smallholder banana production: a case study in viet nam hoang van hung hung yen university of technology and education (utehy), hung yen, vietnam email: davidhoang8585@gmail.com nguyen van huong * hung yen university of technology and education (utehy), hung yen, vietnam email: vanhuong75hy@gmail.com le thi thuong hung yen university of technology and education (utehy), hung yen, vietnam email: lethuongkt.utehy@gmail.com thai thi kim oanh vinh university (vu), vinh city, vietnam email: thaithikimoanhkt@gmail.com nguyen van chuong university of financial – business administration (ufba), hung yen, viet nam email: nguyenchuong.edu@gmail.com nguyen cong tiep viet nam national university of agriculture (vnua), ha noi, viet nam email: nctiep@vnua.edu.vn thai van ha ha noi university of business and technology (hubt), vinh tuy, hai ba trung, ha noi email: vanha280182@gmail.com nguyen thi luong can tho university (ctu), can tho city, viet nam email: ntluong@ctu.edu.vn * corresponding author: vanhuong75hy@gmail.com bananas are considered one of the leading trading crops due to their high demand all over the globe. since the increasing demand leads to the expansion of global import, the existing literature is in dire need of updating, especially from the producing economies that fall in the category of developing nations. the study, thus, intends to estimate the critical efficiency of said area. along with it, the study aims to determine the elements of banana production in the context of vietnam using a stochastic frontier approach and technical efficiency technique. the sample of the study is the province of vietnam named hung yen, and it made sure to collect the data from 160 farmers in 2022. results of the study reveal that the farmers' technical efficiency fluctuates between the range of 89.6897.81%. however, the average technical efficiency of banana farmers was reported to be 95.92%. from the result, it is gauged that factors such as potassium, manure, distance, capital, and training showed positive signs at a 0.01 significance level. also, the education and area coefficient show a positive sign at a 0.05 significance level. finally, distance and district variables, which were the dummy variable, show a negative sign at 0.01 and 0.05 significance levels, respectively. key words: technical efficiency, productivity, and stochastic frontier production function. 1. introduction bananas are ranked as one of the leading crops, not in agriculture production but also in trading. the reason is the fast population growth of producing economies and the expansion of global import demand. due to this overall demand, rapid production of banana crops has been observed in recent decades, enhancing the trade volumes. however, getting authentic and concrete on global banana production is difficult as the sector falls in the informal income category, which is also looked after by smallholder farmers. according to the calculated estimates, the world has witnessed a rise in average global banana production, which jumped from 69 million tons (2000-2002) to 115 million tons in 2017-2019. this upsurge endorses approximately 40 billion value in us dollars (fao, 2019; kamarudin et al., 2021). banana is viewed as an important crop in vietnam. it unleashes a greater significance for other emerging economies as it helps such nations combat poverty-related issues. the claims are proved by various pieces of evidence piled in literature; one such is kushtia district, considered one of bangladesh's leading producers. the evidence reveals that technical and sales efficiency in the kushtia district is 87% and 97%, respectively, covering both input and output vrs. moreover, the evidence of tobit regression reveals that technical efficiency varies due to certain attributes such as farmers' experience, age, education, and firm size. all these elements enhance the efficiency of the farmer in a significant manner. the study thus sheds light on the inefficiencies that could be diminished via training methods, policy interventions and the adaption of improvised agricultural processes. scholars argued that the sector could minimize underdevelopment (chien, 2022; hossain et al., 2018; lan et al., 2022). as already mentioned, bananas are essential for hung yen province and vietnam in general. however, according to the author's limited knowledge, the literature appears to mailto:davidhoang8585@gmail.com mailto:vanhuong75hy@gmail.com mailto:lethuongkt.utehy@gmail.com mailto:thaithikimoanhkt@gmail.com mailto:nguyenchuong.edu@gmail.com mailto:nctiep@vnua.edu.vn mailto:vanha280182@gmail.com mailto:ntluong@ctu.edu.vn mailto:vanhuong75hy@gmail.com agbioforum, 24(2), 2022 | 59 hung, huong, thuong, oanh, chuong, ha and luong. — technical efficiency of smallholder banana production: a case study in… have limited studies that have done an in-depth analysis regarding assessing the technical efficiency of banana production, particularly in vietnam. regardless of the sector's significance, the banana industry of vietnam is in trouble, affecting not only the industry's performance but also the livelihood of farmers and the environment. the reason is due to several issues such as low-quality products, the priority of small-scale producers, less productivity, fragmentation of cultivated area and finally, absurd exploitation of pesticides and fertilisers. however, with evidence, it is reported that the said region has the potential to improve its production efficiency. according to statistics, the planting area of vietnam in total was 133,000 hectares in 2015, which later increased to 154,200 hectares in 2021. also, the production of bananas increased from 1981000 tons to 2345900 tons from 2005 to 2021 (vgsf, 2021). however, even with the increase in production, the quality is not up to the mark to compete in the market. it is argued that resource-based efficiency in agricultural production holds a greater significance and has been one of debate, especially in the context of developing nations. the reason is that, in these regions, most farmers struggle due to the absence of relevant resources. it is argued that the brilliant use of resources provides a pleasant outcome, such as expanding production, which could be further sustainable with farmers' help. agricultural production is the series of activities that transforms the raw material and resources into goods/services called output in the economics dictionary. the inputs could be fertilisers, capital, labour, pesticides etc. the ultimate motive for using resources is to optimise output and profit with minimal cost. in such a production process, the farmer must use resources to achieve the goal efficiently. further, estimation of efficiency offers knowledgeable data that would be helpful for farmers to decide the utilisation of input to produce goods/services. amongst all, technical efficiency is one of the predominant types. technical efficiency is the ratio of observed output and maximum output under the conditional situation where fixed inputs are assumed means it is output based. alternatively, it is also the ratio of minimum input to observed out where it is assumed that the outputs are fixed. hence, they are input-oriented (chien et al., 2022; t. j. coelli et al., 2005; farrell, 1957). with this debatable statement, the current study has a specific objective: to estimate the role of resource-based efficiency and identify the critical determinants of banana production by utilising a stochastic frontier approach and technical efficiency technique in vietnam. based on technical details, the study thus offers insightful evidence on the methods which could be helpful for farmers to make effective use of resources to produce quality bananas with enhanced production. as the banana market is competitive all over the globe and there seems to be high production cost involvement, we can say that production efficiency is now viewed as a crucial factor which could shape the banana industry of vietnam in future, if not neglected and compromised. it is obvious from the earlier debate that either designing or adopting novel production technology is a great asset for the industry as it increases production efficiency. moreover, the industry with the said gains could have the leverage to maintain its economic viability. in other words, we can say that the total output of said industry may get the chance to be increased without increasing cost production, thus shifting focus towards effective utilisation of available resources and technology. the debate is enough to show the need for study; thereby, the study intends to investigate the efficiency level of banana production at individual and industry both levels. with the evidence, the study sheds light on the unveil determinants which could be of greater use to make the improvements. also, the association of efficiency level with critical factors provides a better insight that may help restructure the existing policies. 2. methodology 2.1 research area vietnam's hung yen province is located in the red river delta. the region consists of flat land. hence there are no mountains or hills. the proportion of agricultural land in this province is approximately 61,037 hectares, with annual crops accounting for 91% of the land. the remainder of the land is devoted to perennial crops, aquaculture water, and other uses. in addition, the province possesses around 7,471 hectares of vacant land, which may be utilised for agricultural purposes. the province is recognised as one of vietnam's greatest banana plantation regions. statistics reveal that this province's total banana area is approximately 2736 hectares and can produce 72798 tons of bananas annually. khoai chai, kim dong, and hung yen are among the cities in the provinces with the most banana acreage and, thus, the highest productivity. according to data from 2021, the area grew to 2736 hectares, of which 2603 hectares were used for banana harvesting (hyso, 2021). the three districts and cities of hung yen province were chosen for this study. in 2022, 160 farmers were to be selected as the study sample and interviewed. the selection of the sample was based on a stratified sampling methodology. it should be emphasised that the selected banana farms are indicative of the topography of hung yen province's banana production regions. 2.2 te theory technical efficiency, abbreviated as te, refers to a farmer's capacity to achieve the greatest possible output from a series of inputs and available technology. to conceptualise it, we can say that it measures the difference between farmers' average and best yields and provides the maximum output from the production system. te is the ratio between the actual output of an operation (y) and the maximum possible output (y*) given the available agbioforum, 24(2), 2022 | 60 hung, huong, thuong, oanh, chuong, ha and luong. — technical efficiency of smallholder banana production: a case study in… resources and technology. prior research employed tie as a substitute for te and measured it using the formula: te = 1 tie. estimating the te or tie of farmers in the study site provides numerous crucial data from which alternatives for enhancing farmers' productivity can be derived. there are distinct categories of farmers depending on their variable production operation efficiency. additionally, some farmers are inefficient at managing production activities. consequently, these two situations necessitate distinct strategies that enhance farmers' productivity. for example, if farmers have no efficiency to demonstrate in their production system, the tactics/strategy must be heavily focused on those factors that will aid in increasing efficiency. this demonstrates that the factors directly related to inefficient behaviour must be identified, as it would be difficult to address the issue without doing so. in a different scenario, where farmers are already efficient, a different strategy would be required to increase efficiency or maintain it to the extent that would increase productivity. these strategies focus on introducing novel methods or technologies to increase the input level. there are numerous techniques for measuring te. however, among numerous approaches, the stochastic frontier model has gained popularity and become one of the most effective models for determining the efficiency of farmers. the technical efficiency model of sin tan et al. (2009), which is based on the work of aigner et al. (1977) and meeusen et al. (1977), explains the production function as follows: yi = f (xi; β) exp (vi – ui) where: yi represents the output of the ith farm (i = 1, 2, 3,, n); xi is a l x k vector of input quantities applied by the ith farm; β is a k x l vector of model parameters to be estimated; ui represents a non-negative random error term associated with technical inefficiency in production; vi is a random error term assumed to be normally distributed with mean zero and variance σ2 v, i.e., vi ~n (0, σ2 v) and is independent of ui. it is to be noted that the model has two kinds of error terms. first is vi, associated with random effects in the proposed model, whereas, ui explains the tie in the production. authors sin tan et al. (2009), following battese et al. (1995), made this assumption that the second error term is to be distributed independently and contains half-normal distribution with truncation at zero, i.e., ui ~ |n(µi, σ2 u) |. along with it, the farm-specific frontier production function (y*) refers to the maximum possible outcome, which can be seen below: y* i = f (xi; ß) exp (ui) in the model, the te of an individual farmer could be predicted based on the conditional expectation of exp (-ui). also, the efficiency level depends on the error term. it can be explained in conditional ways, such as if ui is greater than 0, the production is below the frontier function, showing that the farmer is inefficient. however, in the second condition, if ui is equal to zero, the production is on frontier function, revealing the farmer's technical efficiency. figure 1 illustrates the graphical representation of tie, highlighting the yield difference between best and average farmers, represented by frontier and mean production functions. ith farm of te is constructed as follows: tei = yi / yi* = exp (-ui) also, the variance of the proposed model can be defined as the total sum of variance parameters : σ2 = σv 2 + σu 2γ = σu 2/ σ2 the range of γ is from 0 to 1, which depicts the variation of production level from the frontier production function. if γ=1, the deviations occur due to tie (t. coelli et al., 1998). moreover, to find out the possible source of tie. technical efficiency can be written as tei = σzi where zi is a l x m vector of farm-specific variables. this might offer help to elaborate on the observed tie among farms 3. theoretical framework the figure below explains the paradigm of proposed framework in which the series of ivs that affect banana production are listed. as stated previously, 16 farmers from three districts in the province of hung yen were interviewed. note that out of 160, 79 were from khoai chai district, 40 were from hung yen city, and the rest were from kim dong. the descriptives of variables that must be conducted to evaluate the properties of data are displayed in table 1. the data sample contains several input variables, social indices, etc. the table provides various estimates for the characteristics of banana production, household heads, and farms. the average yield per farmer is 35.27562 tons per hectare. additionally, the yield per hectare is above average. the entire province's banana yield is 27,97 tons per hectare. also, average. in terms of person-days, the amount of labour employed was 440.8. additionally, the table indicates that a farmer typically spends vnd 3,256,875 per hectare on pesticides alone. in addition, the table reveals that the average banana farm size in hung yen is approximately 7,562.75 square meters. table 1 also reveals that the average age of households in the sample ranged from 34 to 78 years, approximately 56 years. table 1 also shows that, on average, banana farmers spend nearly 7.887 years in school, which is a third of their secondary education. additionally, farmers have an average of 10.84375 years of experience with banana farming. the average distance is approximately 1.11 kilometres, as shown in table 1. in addition, the average. the average household size is 1-6 people, with a total of 2.9625 people per household. this indicates that the agbioforum, 24(2), 2022 | 61 hung, huong, thuong, oanh, chuong, ha and luong. — technical efficiency of smallholder banana production: a case study in… majority of farmers have small families. regarding seed usage, the average is 2304.672. from a training standpoint, the average number of trainings was 0.44375. this suggests that most banana farmers were unsuccessful in their training programs. 4. empirical findings 4.1 stochastic frontier production model as stated previously, the study utilised the stochastic frontier model to ensure the integrity and validity of the data. in addition, the study employed various tests to assess sampling errors and obtain estimates free of bias. to examine multicollinearity, the vif test was utilised. vif test is preferred over correlation because it yields conclusive results. the vif threshold is 10, so a value greater than 10 indicates the presence of problematic multicollinearity. it is evident from the obtained results that multicollinearity is not an issue here. in conclusion, values less than ten indicate that the selected variables are not colinear, establishing the statistical significance of independent variables. in addition, a heteroskedasticity test was conducted, and the results indicate that the proposed model is sound and that there are no outliers in the data. figure 1. conceptual framework 5. descriptive table 1: description of variables variables obs. mean max min st. dev. banana production characteristics yield (tons) 160 35.27562 48.6 25 5.109244 seed (number of seeds/ha) 160 2304.672 2777.8 1620.4 194.8955 nitrogen (kg/ha) 160 409.7569 880 133.33 175.7098 phosphate (kg/ha) 160 525.5399 888.89 139.68 185.0106 potassium (kg/ha) 160 182.7301 733.33 44.44 97.45834 manure (kg/ha) 160 7192.664 17857.14 0 4795.691 pesticide (million vnd/ha) 160 3.256875 8.33 0 2.202854 labor (man/day) 160 440.8658 694.44 187.5 100.8466 variety 160 0.76875 1 0 0.4229557 household head characteristics household age (years) 160 55.55625 78 34 8.760795 education (years) 160 7.887 12 2 2.500283 experience (years) 160 10.84375 24 3 4.585384 household size (persons) 160 2.9625 6 1 1.212552 banana farm characteristics distance (meters) 160 1.11 4 0.2 0.7971017 banana production technical efficiency land area (m2) seed (number of seeds/ha) nitrogen (kg/ha) phosphate (kg/ha) potassium (kg/ha) manure (kg/ha) pesticides (million vnd/ha) labor (men day/ha) variety household age (year) education level (year) farmer experience (year) household size (person) distance (km) capital training district agbioforum, 24(2), 2022 | 62 hung, huong, thuong, oanh, chuong, ha and luong. — technical efficiency of smallholder banana production: a case study in… land area (ha) 160 0.756275 7.2 0.036 5.109244 capital (loan/none) 160 0.36875 1 0 0.4839808 training (times) 160 0.44375 1 0 0.4983858 district (khoai chau/others) 160 0.49375 1 0 0.5015307 table 2: results of stochastic frontier production estimates variable coefficient std. err. z vif ln (area) 0.0262** 0.0129 2.03 1.62 ln (seed) -0.0267 0.1320 -0.20 1.21 ln (nitrogen) -0.0175 0.0244 -0.72 1.39 ln (phosphate) 0.0780*** 0.0299 2.60 1.51 ln (potassium) 0.0702*** 0.0258 2.72 1.69 ln (manure) 0.0066*** 0.0018 3.50 1.08 ln (pesticide) -0.0099 0.0078 -1.27 1.08 ln (labor) 0.0240 0.0437 0.55 1.27 variety -0.0632** 0.0260 -2.43 1.23 constant 2.951 1.122 2.63 wald chi2 69.57 log-likelihood 112.4777 note: significant at *** = 1%; ** = 5%, * = 10% source: author's estimation the study also used the cobb-douglas production frontier function, where the coefficient values of the variables might be interpreted as the direct elasticity of the function. independent constructs elasticity demonstrates the extent to which banana yield can be predicted to alter in response to a change in production inputs. the factors are, phosphate, potassium, and manure are positively correlated with banana yield, as shown in table 2. all the positive coefficient indications indicate that a 1% increase in each variable will improve banana yield by 2.6%, 7.8%, 7.1%, and 0.1%, respectively. this has a detrimental effect in the case of variety, as the "bisang awak" banana variety planted by farmers is not as productive as other varieties. the results indicate that the area variable favours banana production and is statistically significant at the 5% level. this indicates that the larger the household's land area, the higher the household's banana productivity, and because of the large scale, the farmers produce in a more specialised direction, the household will invest more in machinery and use better technical processes in production, resulting in more efficient production. in addition, households with big production areas will focus more on the care and administration of banana crops, making them more productive than those with smaller production areas. the favourable impact of phosphate fertiliser on banana yield is statistically significant at 1%. this indicates that households using more phosphate fertilisers will increase banana crops. according to dung (2021), phosphate fertiliser is crucial throughout the plant's early growth stage. during this stage, phosphorus deficiency significantly affects the output of banana plants. however, a real study indicates that the present average rate of phosphate fertiliser application by research households in the province of hung yen is 525.54 kg/hectare, which exceeds the required level for banana cultivation. in addition to phosphate fertilisers, potassium fertilisers had a 1 per cent significant positive effect on banana yield. thus, households utilising more potassium fertilisers will have increased yields. potassium is also vital for yield, according to nguyen van dung et al. the potassium requirements of banana plants are relatively low at the beginning of growth and peak during flowering. potassium deficiency has a significant impact on banana yield and quality, especially if it occurs during the flowering period. however, banana-growing households consume an average of 182,73 kg of potassium fertiliser per hectare. farmers fertilise based on their own and other people's experiences, not on a reasonable formula, because the fertiliser norm between different types of fertilisers has not followed a standard. this has a significant impact on the productivity of banana-growing households. most bananagrowing households in hung yen province have not received training on properly caring for and distributing fertilisers. manure is statistically significant at the 1% level and has a positive relationship with yield, which means that if households increase the amount of manure, productivity will increase. because manure provides valuable nutrients such as n (nitrogen), p (phosphorus), s (sulfur), and k (potassium), it provides a variety of significant benefits. these are essential nutrients for the growth of banana plants. the banana variety has an inverse relationship with banana yield. when households grow a "bisang awak" banana, the yield will be lower than when they grow a cavendish banana. the average yield of the "bisang awak" banana is 34.34 tons/ha, while that of the cavendish banana is 36.86 tons/ha, according to the survey results. 5.1 technical efficiency's frequency distribution based on production frontier function estimation, table 3 provides a frequency distribution of te. as the range of te for banana farmers is between 89.68% and 97.81%, with a mean of nearly 96%, this demonstrates a substantial variation. the results indicate that the maximum frequency range of te in the sample of 121 farms is greater than 96%, or 75.625% of the total. 39 farms, or 24.375 per cent, fall within a frequency range of less than 96 per cent. agbioforum, 24(2), 2022 | 63 hung, huong, thuong, oanh, chuong, ha and luong. — technical efficiency of smallholder banana production: a case study in… this demonstrates that the majority of farms meet the te during production. the findings also indicate that farmers' average te can potentially reduce costs by 1.96 % if they achieve maximum te levels. this indicates that the relationship between te and production cost is inverse. in addition, it is stated that farmers who are not technically efficient could save 8.31% on costs if they become more efficient. 6. efficiency effects model table 3 frequency distribution of te for banana farming te (%) freq cumulative % 89 91 3 1.875 92 93 3 1.875 94 95 33 20.625 96 97 114 71.250 > 97 7 4.3750 total 160 100 minimum te (%) 89.68 maximum te (%) 97.81 mean te (%) 95.92 table 4: multiple regression estimates of the sources of te variable coefficient std. err. t vif p age -0.00009 0.00011 -0.83 1.63 0.410 education 0.00105** 0.00045 2.32 1.66 0.022 experience 0.00013 0.00016 0.81 1.21 0.418 household size 0.00056 0.00068 0.82 1.20 0.414 distance -0.00355*** 0.00120 -2.95 1.18 0.004 capital 0.00450*** 0.00153 2.94 1.15 0.004 training 0.01393*** 0.00161 8.66 1.35 0.000 district 0.00173 0.00196 0.88 1.34 0.380 constant 0.94820 0.00838 113.11 0.000 adjusted r2 0.512 root mse 0.010 note: significant at *** = 1%; ** = 5%, * = 10% source: author's estimation examining the variables' signals in the regression model is essential, as it describes the farmers' te capacity. the beneficial sign of beta coefficients implies that the variables will undoubtedly have a positive effect on the te of the farms, whilst the negative sign indicates the opposite. the coefficient estimates derived from the te model indicate that capital training has a positive and statistically significant influence since the coefficient has a positive sign and a significance level of 1%. education appears to have positive and significant effects as it meets the criterion and demonstrates significance at 5%. in the case of distance, however, the relationship is inverted due to the negative sign. however, 1% is found to be the level of importance. since education has a positive and significant effect, this explains the conclusive evidence that farmers with a higher level of education behave more effectively. as predicted, the distance variable had a negative effect, which might be explained by the fact that farmers who reside far from banana fields do not exhibit efficient behaviour since the longer it takes to reach the field, the less time they will spend on the field. additionally, the travel would damage their energy. in contrast, farmers who live close to their fields have sufficient time and energy to care for them and efficiently use inputs. consequently, we may assert that distance is significant and could enhance farmers' technological efficiency. at 1%, the capital variable had a positive correlation with te. this indicates that farmers with easy access to financing and who can invest as much as possible in banana cultivation may experience larger te. the findings are rational and consistent with the stated explanation that the more capital farmers have, the more opportunities they have to acquire machinery. in addition, with such a large amount of wealth, they could employ creative approaches. this would allow them to demonstrate their efficiency more tangibly. in addition, borrowing money to produce bananas makes farmers more focused on making investments, resulting in greater productivity. as anticipated, training had a good effect, which can also be justified. farmers who have access to training courses will acquire the skills and information necessary to cultivate bananas of standard quality. this implies that their intelligence will be unleashed as a result of their participation in training, as they will gain more information and knowledge about factors such as the effective use of fertilisers, pest control, and planting density. in addition, with a precise education in preservation and harvesting, they will be more creative in applying theoretical knowledge, increasing their technical efficiency relative to others. 7. conclusion and recommendations the study made a modest effort to assess banana production's technical efficiency and identify its determining factors in the vietnamese context. the province of hung yen served as the study's sample, and agbioforum, 24(2), 2022 | 64 hung, huong, thuong, oanh, chuong, ha and luong. — technical efficiency of smallholder banana production: a case study in… stochastic frontier analysis was used. according to the evidence, the average level of technical efficiency in the chosen sample is 95.92%, indicating that farmers can achieve maximum output at minimal cost by utilising existing technology effectively. in addition, it is evident from the results that there is room for technological improvement in the given sample, which indicates that production can be increased further if inputs are utilised efficiently. the increase in banana yield also depends on the quantity of land, nitrogen, phosphate, potassium, manure fertilisers, labour, and cultivar. as farm inputs are essential for increasing banana yield, additional policies must be implemented to increase the proportion of land, labor, fertiliser, and new variety investments. in addition, the findings reveal that demographic and socioeconomic factors, such as experience, education, capital, and specific training, will be useful in maximising the technical efficiency of banana production in the selected sample. as a result, it is suggested that government institutions encourage farmers to educate themselves through workshops and short training courses, as this may increase their technical efficacy. in addition, it would be beneficial to educate farmers on the need for loans, which would improve the situation. 8. acknowledgment this research is funded by hung yen university of technology and education, vietnam, under grant number utehy.l.2022.05. references aigner, d., lovell, c. k., & schmidt, p. 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https://doi.org/10.1108/02635570910930118 agbioforum, 24(1): 106-114. ©2022 agbioforum the influence of oil and energy consumption factors on fuel imports in former soviet union fuel economies haidar ali al dulaimi university of babylon, college of administration and economics, iraq email: bus.hayder.ali@uobabylon.edu.iq asam mohamed aljebory university of babylon college of adminstration and econimics,iraq email: asamcultural@itnet.uobabylon.edu.iq mustafa jawad kadhim al-bakri al-mustaqbal university college ,iraq email: mustafa.jawad.kadim@mustaqbal-college.edu.iq mustafa kamil shakeer al-mustaqbal university college,iraq email: mustafa.kamail@mustaqbal-college.edu.iq due to the extensive energy usage derived from oil and fossil fuels, excessive fuel import levels have recently become an international concern. this issue deserves the attention of researchers and regulators. consequently, this study examines the influence of electricity production from oil sources (epor), fossil fuel energy consumption (ffec), energy use, industrialization, and population growth on oil and fuel imports in the former soviet union (fsu) fuel economies. from 2011 to 2020, the article uses data from a secondary source such as world development indicators (wdi). methods of momentsquantile-regression (mmqr) were used to evaluate the relationship between the constructs in this research. epor, ffec, energy consumption, industrialization, and population growth were found to have a positive relationship with oil and fuel imports in fsu fuel economies. the article guides designing laws to reduce oil and fuel imports by limiting oil and fuel-derived energy use. key words: electricity production from oil sources, energy use, industrialization, population growth, fuel imports, former soviet union (fsu). 1. introduction international trade has been facilitated by time and globalization, and the import of fuels has emerged. due to its impact on a nation's development, fuel import has garnered considerable inquiry and discussion among academics (adewuyi & awodumi, 2021). the import of fossil fuels boosts the country's overall use of fossil fuels. the abundant supply of fossil fuels enables the nation to enjoy affordable and dependable energy without major technological advancement. it facilitates executing several social and economic activities that require energy, contributing to social welfare and economic expansion. despite its disadvantages, importing petroleum allows for meeting current energy demands and conducting social and commercial activity. however, importing petroleum has numerous negative effects on social and economic development that outweigh its positive advantages (kilci, 2019). for example, fossil fuels contain both carbon and hydrogen. when imported fossil fuels are burned in greater quantities, they produce greenhouse gas emissions that degrade the environment. the imported fuel poses harm to human health and decreases human productivity. in addition, it harms the quality of natural resources, such as crops, plants, trees, food, air, water, and soil. it degrades the health of living creatures, such as birds, animals, and fish, which provide citizens with life and economic necessities. therefore, the importation of fuel makes it impossible for the country to be self-sufficient (dorotić et al., 2019). the import of fuel is primarily driven by electricity generation from oil and other fossil fuels, energy consumption, and energy use. when electricity generation from oil resources increases, the existing limited oil stocks may be insufficient to supply the energy demand. this necessitates the importation of energy. similarly, if the usage of fossil fuels or any other form of energy increases inside a country and local energy supplies are insufficient to meet energy needs, energy imports increase (gökgöz & güvercin, 2018). current research studies the effects of oil-based electricity production, fossil fuel energy consumption, energy use, population expansion, and industrialization on fuel import in fsu countries. russia, ukraine, belarus, kazakhstan, kyrgyzstan, uzbekistan, tajikistan, turkmenistan, moldova, estonia, lithuania, latvia, georgia, armenia, and azerbaijan. in 2020, russia will import 39 % of the eu's gas, 23 % of its oil, and 46 % of its coal. ukraine imports 83% of its oil, 33% of its natural gas, and 49% of its coal for use (bulut & muratoglu, 2018). belarus imported 17 mtoe of natural gas in 2018, making it the top importer of fuel among eu4energy countries. kazakhstan imports 292,236,000 barrels of oil per day. although kyrgyzstan extracts some oil, natural gas, and coal, most hydrocarbons are imported. more than fifty percent of its energy needs are satisfied by imported oil and gas. uzbekistan imports extra crude oil for its refineries, which amounts to 30 % of all inputs (zhu, mortazavi, maleki, aslani, & yousefi, 2020). during periods of scarcity, tajikistan imports oil, gas, and coal. turkmenistan has predominantly participated in fuel exports and imports energy infrequently. the imports of moldova cover 98 % of the country's total oil consumption, which is 1.0 mtoe and consists of 80% diesel and gasoline. all coal in consumption is also imported. estonia imports all of its oil resources, which total 1,3 mtoe and are consumed, primarily from russia. lithuania meets 70% of its energy requirements via exports by jiang, liu, and wang (2022). after purchasing 417 million kwh and mailto:bus.hayder.ali@uobabylon.edu.iq mailto:asamcultural@itnet.uobabylon.edu.iq mailto:mustafa.jawad.kadim@mustaqbal-college.edu.iq mailto:mustafa.kamail@mustaqbal-college.edu.iq agbioforum, 24(1), 2022 | 107 dulaimi, aljebory al-bakri and shakeer. — the influence of oil and energy consumption factors on fuel imports in former soviet… exporting 304 million kwh, latvia was left with 572 million kwh for domestic usage. in 2019, all of georgia's natural gas will be 2.69 cm, and most of its oil products will be imported, totalling 1.35 mt. the majority of imported oil is refined petroleum products (diesel, 40 %, and gasoline, 40 %). armenia imports all fossil fuels. moreover, eighty percent of armenia's energy imports consist of natural gas, while the remainder consists of oil goods. oil imports by azerbaijan total 163 506 000 barrels (neufeld et al., 2021). all of the fsu member states are rising economies. the ability to import petroleum helps these nations satisfy their energy needs, but excessive imports disrupt their balance of payments and threaten their sustainable growth by aggravating environmental challenges. however, many nations are still unsure how to reduce energy imports without impeding economic progress (bae & mah, 2019). the purpose of this study is to highlight the primary causes of fuel importation. this study aims to investigate the effects of oil-based electricity generation, fossil fuel energy consumption, energy use, population increase, and industrialization on fuel import. this work makes its unique contribution to the body of knowledge. the study's primary objective is not to enable fuel import but rather to prevent it by describing its causes. therefore, the study's focus is what places it at the top of the available literature. second, the impacts of power production from oil, fossil fuels energy consumption, energy use, population expansion, and industrialization on fuel import have been addressed in disparate ways in the prior research. the present study contributes to the existing body of knowledge by examining the effects of these factors on fuel import based on comparable research of equivalent importance. thirdly, this study investigates the impact of oil-based electricity production, fossil fuel energy consumption, energy use, population expansion, and industrialization on fsu countries' fuel imports. thus, the scope of this analysis is far greater than that of a previous study on fuel imports. the paper consists of various sections, which are listed below. the second section uses a literature review to address the relationship between power production from oil, fossil fuels energy consumption, energy use, population expansion, industrialization, and fuel import. following the results and conclusions, the third section details the research methodology. the following section supports the present study with additional research. the study's ramifications are then presented, followed by findings and limits. 2. literature review assume that the import of fuel enables the country to obtain energy resources from other nations in return for currency to address the energy deficit and meet its current energy needs. in addition to hurting the health of living beings and degrading the environment and its elements, pollution impedes the sustainable economic development of a nation. several variables, such as oil-based electricity production, fossil fuels energy consumption, energy use, population expansion, and industrialization, contribute to fuel import by raising the energy demand and increasing fuel import (alola, eluwole, alola, lasisi, & avci, 2020). several authors have offered their perspectives on the relationship between power production from oil, fossil fuel energy consumption, energy use, population expansion, and industrialization and fuel import in the available literature. these viewpoints of the authors will be examined in the following: any nation's primary source of electricity production is petroleum. the oil reserves are created by nature, and this process takes hundreds of years to complete (das et al., 2018). when oil is used continuously and in significant quantities for power production, there may soon be an oil scarcity. and in this circumstance, when oil consumption is rising, and supplies are restricted, nations choose to purchase oil reserves from foreign economies. consequently, the electricity production from oil reserves causes the nation to import gasoline (mengal et al., 2019). hamzah, tokimatsu, and yoshikawa (2019) explore the power production from oil reserves and its impact on fuel importation. this paper demonstrates that as the economy is expanding, operations need to be expanded and increase overall output. under these conditions, more energy is consumed to achieve various economic objectives. consequently, as the nation's demand for electricity derived from oil resources increases, its oil reserves cannot keep up, leaving it with little choice except to import oil. gaete-morales, gallego-schmid, stamford, and azapagic (2019) shed light on power derived from fossil fuels such as oil, fuel import, and environmental impacts. evidence to test the theory was collected in chile between 2004 and 2014, a period of ten years. the study suggests that there is a favorable relationship between the three factors. whenever there is an increase in electricity production from oil resources, governments attempt to import fuel to meet the need for oil reserves. thus, there is a positive relationship between oil-based electricity output and fuel imports. kamidelivand, cahill, llop, rogan, and o'gallachoir (2018) examine the relationship between electricity production from oil reserves and fuel import. the study suggests that as electricity demand increases and the economy relies heavily on oil use for this purpose, oil reserves are in greater demand. the rising oil demand will be satisfied with fuel imported from foreign nations. the primary source of energy in any economy is fossil fuels. fossil fuels such as natural oil, natural gas, coal, ore, and petroleum are recovered from the earth beneath the heaviest rocks and form over hundreds of years. baz et al. (2021). fossil fuels are either burned directly to provide energy or used to power turbines that generate electricity. when there is pressure on fossil fuel usage for energy reasons, the amount of fossil fuels continues to decline, putting the country under pressure to import fossil fuel resources from outside to meet the rising energy demand (wang et al., 2020). perry (2020) investigated the agbioforum, 24(1), 2022 | 108 dulaimi, aljebory al-bakri and shakeer. — the influence of oil and energy consumption factors on fuel imports in former soviet… relationship between fossil fuel energy usage and fuel imports in his study. all business processes require energy, including heating, lighting, cooling, or force, and technologies used in commercial operations, electricityproducing facilities, and transportation activities. fossil fuels are favoured for use because they supply highvoltage electricity and allow businesses to respond quickly to urgent needs. the increased need for fossil fuels necessitates the acquisition of foreign fuel reserves. in a scholarly work on substituting fossil fuels with renewables, marques, fuinhas, and pereira (2018) examine the effects of fossil fuel energy consumption on fuel imports. using ardl estimators, the relationship between the components was empirically examined in eleven european nations between 1990 and 2014. the findings revealed that increasing fossil fuel energy use increases fuel imports, indicating a positive link between the two variables. choi and song (2018) authored a study on fossil fuel consumption and energy importation. the study demonstrates that when commercial entities use fossil fuels for obtaining energy and conducting company operations, the demand for energy rises and fuel import increases. energy sources are used to power machinery, technology, processes needing heat, force, lightning, or cooling, and transportation operations. the nation's energy consumption rises with the expansion of household, social, and economic activities dependent on these processes, technologies, machinery, and vehicles (san-akca, sever, & yilmaz, 2020). when energy consumption inside a country increase, the demand for energy resources also rises; when local energy supplies are insufficient to fulfill the rising energy demand, economists go to other economies to acquire energy resources. consequently, rising energy consumption raises energy demand (kemfert, 2019). using empirical data, shao, guo, yu, yang, and guan (2019) explore the effects of energy use on fuel import. the information on energy use and fuel import was collected in shanghai, china, from 1991 to 2016. according to the report, countries with technical advancements use machines, plants, and other techniques that require high voltage power. this results in increased energy consumption. fuel imports are necessary to meet energy demands when energy is consumed at a higher pace than the country's energy production capacity. murshed, mahmood, alkhateeb, and bassim (2020) investigate the connection between energy consumption, energy costs, and energy import. the data for the selected factors were obtained from sri lanka. when robots and technologies replace manual work in a nation, more energy is consumed, according to the study. the nation's increasing energy use generates an energy shortage. the rising demand for energy boosts imports of fuel. rehman, ma, and ozturk (2021) analyze the connection between economic growth, industrialization, and energy imports in a literary analysis. pakistan's economic growth, industrialization, and energy importations, as well as their relationship, were analyzed using the quantile regression technique from 1971 to 2019. the study suggests that the industry dominates most of the country when a nation is experiencing significant economic growth. this encourages economists to rely on machinery, electrical appliances, and plants rather than human labor while conducting business procedures. consequently, if energy demand exceeds energy output, the extra demand is satisfied by fuel imports. akhmad and amir (2018) examine the effects of industrialization on the import of gasoline. as the economy grows, there is a rise in the industry within the country. as a result, on the one hand, the production of technological and mechanical components and the utilization of machines and technical instruments rise. on the other hand, the movement of cargo and human capital increases rapidly, resulting in a rise in the number of operating transport vehicles. extensive use of equipment, technical processes, and transportation operations leads to a rise in energy usage. the country is compelled to import fuel if the growing energy demands cannot be met with domestic resources. khan, hou, irfan, zakari, and le (2021) study examines the connection between financial development, population increase, energy use, and energy import. the top ten countries, as ranked by weti 2020, were chosen as samples for investigating the relevant parameters. to investigate the factors nexus, econometric and analytical methods such as gmm, gls, and fmols were utilized. the analysis indicates that international energy trade depends on domestic energy production and consumption. population growth in a country increases energy consumption beyond the country's energy-producing capabilities. as a result, the country must import energy sources. in their literary work, mohsin, abbas, zhang, ikram, and iqbal (2019) study the relationship between economic development, population expansion, energy use, and energy import. the econometric and analytical techniques, such as a hybrid error correction model, regression coefficients, the dickey-fuller test, and the cointegration test, were used to examine transport sector components in pakistan. the study suggests that a country's economic and household patterns expand with its population. due to the increased energy demand caused by these operations, the government is forced to import more gasoline. 3. research methods this study examines the influence of epor, ffec, energy consumption, industrialization, and population increase on oil and fuel imports in fsu fuel economies. from 2011 through 2020, the article pulls information from secondary sources such as wdi. data from 12 fsu nations, including russia, georgia, ukraine, uzbekistan, belorussia, azerbaijan, moldova, latvia, kazakhstan, kyrgyzstan, lithuania, and estonia, were compiled for the study. three nations, including armenia, turkmenistan, and tajikistan, were excluded from the study due to a lack of data. the agbioforum, 24(1), 2022 | 109 dulaimi, aljebory al-bakri and shakeer. — the influence of oil and energy consumption factors on fuel imports in former soviet… work has established the following equation with variables under investigation: 𝐹𝐼𝑀𝑖𝑡 = 𝛼0 + 𝛽1𝐸𝑃𝑂𝑅𝑖𝑡 + 𝛽2𝐹𝐹𝐸𝐶𝑖𝑡 + 𝛽3𝐸𝑈𝑖𝑡 + 𝛽4𝑃𝐺𝑖𝑡 + 𝛽5𝐼𝑁𝐷𝑖𝑡 + 𝑒𝑖𝑡 (1) where; fim = fuel imports t = time period i = countries epor = electricity production from oil resources ffec = fossil fuel energy consumption eu = energy use pg = population growth ind = industrialization the dependent variable in the study was fuel imports, which were measured using the fuel import (percentage of merchandise imports). in addition, the study utilized two independent variables, such as oil consumption in electricity measured as the electricity production from oil resources (percentage of total) and energy consumption measured with ffec (percentage of total) and energy use (kg of oil equivalent per capita). lastly, the article utilizes two control variables: industrialization as defined by industry value added (percent of gdp) and population increase as assessed by population growth (annual percent). these dimensions are listed in table 1. table 1: measurements of variables s# variables measurement sources 01 fuel imports fuel import (percentage of merchandise imports) wdi 02 oil consumption in electricity electricity production from oil resources (% of total) wdi 03 energy consumption ffec (% of total) energy use (kg of oil equivalent per capita) wdi wdi 04 population growth population growth (annual %) wdi 05 industrialization industry value added (% of gdp) wdi the study has examined the details of all understudy constructs with the help of descriptive statistics. moreover, the study also checks the association among the variables with the help of a correlation matrix. the article has also examined multicollinearity with the help of the variance inflation factor (vif). the equations for the test are given below r2 y 𝑌𝑖𝑡 = 𝛼0 + 𝛽2𝑋2𝑖𝑡 + 𝛽3𝑋3𝑖𝑡 + 𝛽4𝑋4𝑖𝑡 + 𝛽5𝑋5𝑖𝑡 + 𝑒𝑖𝑡 (2) 𝑗 = 𝑅𝑌 2, 𝑅𝑋1 2 , 𝑅𝑋2, 2 𝑅𝑋3, 2 𝑅𝑋4, 2 𝑅𝑋5 2 (3) 𝑇𝑜𝑙𝑟𝑎𝑛𝑐𝑒 = 1 − 𝑅𝑗 2 𝑉𝐼𝐹 = 1 𝑇𝑜𝑙𝑒𝑟𝑎𝑛𝑐𝑒 (4) in addition, the study examines the relationships between understudy variables with the help of mmqr. this approach is established by j. a. machado and silva (2019); (j. a. f. machado & santos silva, 2019) and has the ability to robust to outliers. moreover, this approach permits the “conditional heterogeneous covariance effects” of fim that influence the whole distribution in difference to panel quantile regression and allows shifting means (adebayo, akadiri, adedapo, & usman, 2022). the conditional quantile, for example, 𝑄𝜏(𝜏/𝑋) for the “locational-scale alternate model” is established as under: 𝑌𝑖𝑡 = 𝛼𝑖 + 𝑋𝑖𝑡𝛽 + (𝛿𝑖 + 𝑍𝑖𝑡𝜆)𝑈𝑖𝑡 (5) where, 𝑃{𝛿𝑖 + 𝑍𝑖𝑡𝜆 > 0} = 1. shows the probability, 𝛼, 𝛽, 𝜆 𝑎𝑛𝑑 𝛿 shows the parameters that need to be assessed, 𝛼𝑖 , 𝛿𝑖 i = 1, … . . , n shows a precise fixed effect, z shows the k-vector of component x. finally, the components are transformed with component l, which is mentioned below: 𝑍𝑙 = 𝑍𝑙 (𝑋), 𝑙 = 1, … … , 𝑘 (6) where, 𝑈𝑖𝑡 shows orthogonal to 𝑋𝑖𝑡 and consistent with achieving the moment situations that do not include stringent heterogeneity. hence, the conditional quantile of y is established as under: 𝑄𝜏(𝜏/𝑋𝑖𝑡) = (𝛼𝑖 + 𝛿𝑖𝑞(𝜏)) + 𝑋𝑖𝑡𝛽 + 𝑍𝑖𝑡 𝜆 𝑞(𝜏) (7) where, 𝑋𝑖𝑡 shows the independent variables such as epor, ffec, eu, pg, and ind and 𝑌𝑖𝑡 shows the predictive variable such as eim, which is conditional as 𝑋𝑖𝑡 . due to time invariants, the heterogeneous effects are permissible for modification across the quantiles of the predictive construct y. hence, 𝑄(𝜏) is established as under: 𝑀𝑖𝑛𝑞 = ∑ ∑ 𝑝𝜏𝑖𝑡 (𝑅𝑖𝑡 − (𝛿𝑖 + 𝑍𝑖𝑡 𝜆 )𝑞) (8) 4. research findings the study has examined the details of all understudy constructs with the help of descriptive statistics. the outcomes uncovered that the eim average value was 13.812 %, the epor mean value was 1.297 %, and ffec mean value was 74.300 %. in addition, the findings also indicated that the eu average value was 2446.464 (kg of oil equivalent per capita), pg mean value was 0.224 %, and ind mean value was 27.804 %. these figures are mentioned in table 2. moreover, the study also checks the association among the variables with the help of a correlation matrix. the findings indicated that the epor, ffec, energy use, industrialization, and population growth have a positive nexus with oil and fuel imports in fsu fuel economies. these figures are mentioned in table 3. the article has also examined multicollinearity with the help of vif. the results exposed that the reciprocal vif values are not less than 0.20, and vif values are not bigger than five. these figures indicated no multicollinearity. these figures are mentioned in table 4. agbioforum, 24(1), 2022 | 110 dulaimi, aljebory al-bakri and shakeer. — the influence of oil and energy consumption factors on fuel imports in former soviet… table 2: descriptive statistics variable obs mean std. dev. min max eim 120 13.812 9.312 0.723 40.917 epor 120 1.297 1.905 0.000 7.479 ffec 120 74.300 25.791 4.937 100.122 eu 120 2446.464 1497.134 45.386 5167.01 pg 120 0.224 1.077 -2.258 2.684 ind 120 27.804 8.873 17.955 61.733 table 3: matrix of correlations variables eim epor ffec eu pg ind eim 1.000 epor 0.006 1.000 ffec 0.171 0.077 1.000 eu 0.163 0.059 -0.177 1.000 pg 0.371 -0.070 0.305 -0.149 1.000 ind 0.258 0.394 0.456 0.088 0.371 1.000 table 4: variance inflation factor vif 1/vif ind 1.805 0.554 ffec 1.376 0.727 pg 1.300 0.769 epor 1.277 0.783 eu 1.103 0.906 mean vif 1.372 . mmqr is then used to evaluate the associations between the variables under investigation. epor, ffec, energy consumption, industrialization, and population growth were found to have a positive relationship with oil and fuel imports in fsu fuel economies. the results also revealed that the ind substantially influences fim in quantiles 1 through 7, whereas ffec greatly influences fim in quantiles 1 through 8. in addition, the results revealed that the pg has a considerable influence on fim in quantiles 1 through 8 and that epor has a large influence on fim in quantiles 1 through 5 and 7. the data also revealed that the eu considerably impacts fim quantiles 1 through 5, 7 and 9. these connections are shown in table 5. table 5: panel quartile estimation (mmqr) variables method of moments quantile regression (mmqr) location scale grid of quartiles 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 ind 0.212*** 0.544* 0.883** 0.944** 0.182* 0.272** 0.372* 0.667* 0.453* 0.102 0.065 ffec 0.876** 0.526* 0.201** 0.337* 0.300* 0.881*** 0.288** 0.928** 0.338** 0.100* 0.037 pg 0.883*** 0.091** 0.288** 0.883** 0.389* 0.793* 0.192* 0.663* 0.665* 0.392** 0.188 epor 0.902* 0.552** 0.472* 0.377* 0.188** 0.229* 0.388* 0.372 0.292* 0.100 0.028 eu 0.667* 0.871** 0.776* 0.365** 0.288*** 0.573* 0.282* 0.102 0.288* 0.162 0.377* ***, **, and * represent significant level at 1%, 5%, and 10%, respectively 5. discussions the results indicated that oil-generated electricity had a positive correlation with fuel imports. these findings are corroborated by aryanpur, atabaki, marzband, siano, and ghayoumi (2019), demonstrating that when the economy advances, it desires to extend its activities and boost its total economic output. under these conditions, the usage of energy for various economic purposes grows. as a result, as the electricity output from oil resources increases, the country's oil reserves are insufficient to fulfill demand, and it must import oil. these findings are also consistent with song, fisher, and kwoh (2019), who examine the role of oil-derived electricity production in fuel imports. the study hypothesizes that there is a deficiency of oil reserves in nations where the usage of power for household and business technology is expanding and where energy is mostly produced from oil resources. thus, the demand for fuel imports grows. the findings revealed a favorable relationship between fossil fuel energy use and fuel imports. these findings are backed by hank et al. (2020). they demonstrate that all business processes, including heating, lighting, cooling, or force, as well as technologies utilized for business operations, plants used for power production, and vehicles, require energy. due to their instantaneous responsiveness and high voltage, fossil fuels are the favored energy source. the increasing fossil fuel consumption necessitates acquiring fuel reserves from foreign nations. these findings are also consistent with ioannidis, chalvatzis, li, notton, and stephanides (2019). they note that the rising consumption of fossil fuels such as coal, oil, and petroleum increase the demand for fuel imports. the findings demonstrated a favorable relationship between energy consumption and fuel imports. these agbioforum, 24(1), 2022 | 111 dulaimi, aljebory al-bakri and shakeer. — the influence of oil and energy consumption factors on fuel imports in former soviet… findings are reinforced by yaqoob et al. (2021), who demonstrate that energy consumption rises as technologies and machines replace manual labor in a country. increasing domestic energy use causes an energy deficit and increases fuel imports. these findings are also consistent with weishaupt, ekardt, garske, stubenrauch, and wieding (2020) examination of the role of energy use in fuel imports. according to this study, communities with rapid growth in energy consumption play an active role in fuel imports. the results revealed a favorable relationship between population increase and fuel imports. these findings are reinforced by zeng, stringer, and lv (2021), who demonstrate that when the population growth rate rises, so do the number of people who consume energy. imports of petroleum are used to meet the rising energy demand. these findings are also consistent with o'sullivan (2020) assertion that as a country's population grows, so do its household and economic behaviors. as a result of these activities, the rising demand for energy pushes the citizens to increase fuel imports. the findings revealed a positive relationship between industrialization and fuel imports. these results concur with grinberg (2022) assertion that expanding industrialization over a larger land area increases equipment usage instead of human labor. in this circumstance, the demand for energy rises; if the country's natural energy supplies cannot meet it, fuels are imported. these results are also consistent with qiao et al. (2022) analysis of the effects of industrialization on fuel imports. when industrialization advances, the manufacturing of machinery parts and the use of machinery in the economy rise, according to this study. increasing energy demands are satisfied through the importation of fuel supplies. 6. implications this work contributes significantly to the body of knowledge and can provide the authors with theoretical instructions. the study investigates the effects of oil-based electricity generation, fossil fuel energy consumption, and energy consumption, together with population expansion and industrialization, on fuel import. in the past, the role of power production from oil, fossil fuels energy consumption, and energy use, coupled with population growth and modernization, in fuel import has been evaluated using data from one or two economies. this study contributes to the literature by evaluating the link between these characteristics in fsu nations. the current investigation also has some relevance in the real world. it is a report with advice on how economies such as those in the fsu might regulate energy imports. the article guides designing laws to reduce oil and fuel imports by limiting oil and fuel-derived energy use. to reduce energy imports, the government and economic actors are obligated to formulate policies to lessen the reliance on oil and fossil fuels for electricity production by introducing alternative energy sources. the present analysis is also guidance for policymakers on reducing total energy consumption or altering energy consumption patterns to control energy import and the resulting pollution. in addition, the report emphasizes that population expansion and industrialization must be properly managed to reduce fuel imports. 7. conclusion this study aims to examine the effects of oil-based electricity production, energy consumption from fossil fuels, and energy consumption with population increase and industrialization on fuel import. using a secondary technique, the authors obtained data for oil-based electricity production, fossil fuel energy consumption, energy use, population growth, industrialization, and fuel import. fuel import was positively related to oil-based electricity production, fossil fuel energy consumption, energy use, population increase, and industrialization. the analysis revealed that as the amount of electricity generated from oil resources increases, oil reserves deplete, leaving the nation with little choice except to import oil. based on the findings, fossil fuels are utilized due to their rapid response and high voltage power. the increased need for fossil fuels necessitates the acquisition of foreign fuel reserves. they discovered that the increased usage of technology and equipment increases the consumption of energy resources. increasing domestic energy use causes an energy deficit and increases fuel imports. when a country's pollution level rises, the number of human activities using energy resources also rises. imports of petroleum are used to meet the rising energy demand. industrialization expands the usage of machines throughout a broader land area. in this situation, energy demand increases, and fuel imports are required if natural energy supplies cannot supply them. 8. limitations there are also some limitations associated with the present investigation. the authors should utilize their writing skills to overcome these restrictions. to quantify fuel import, the current study investigates a restricted number of criteria, including oil-based electricity production, fossil fuel energy consumption, energy use, population growth, and industrialization. several other factors that have a significant impact on fuel import are absent from this study. to provide thorough guidance, future authors should examine gasoline imports based on all available criteria. in addition, the authors have gathered data on oilbased electricity production, fossil fuel energy consumption, energy use, population growth, and the effects of modernization on fuel imports from fsu nations during a restricted period. this is a brief analysis that cannot produce equally valid results for different countries and time periods. future authors are expected to examine the components and their relationships over an extended period. references adebayo, t. s., akadiri, s. s., adedapo, a. t., & usman, n. 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(2020). analysis of the robustness of energy supply in japan: role of renewable energy. energy reports, 6, 378-391. doi:https://doi.org/10.1016/j.egyr.2020.01.011 agbioforum, 24(2): 83-95. ©2022 agbioforum the moderating effect of social-media among managerial capabilities and strategic innovations on product life cycle management and distribution performance daman sudarman faculty of economics and business, padjadjaran university, indonesia email: daman.sudarman@umj.ac.id dwi kartini faculty of economics and business, padjadjaran university, indonesia email: d.kartini@unpad.ac.id r arief helmi faculty of economics and business, padjadjaran university, indonesia email: arief.helmi@unpad.ac.id rita komala dewi faculty of economics and business, padjadjaran university, indonesia email: rita.komaladewi@unpad.ac.id the covid-19 pandemic has created business difficulties for rtd tea, the second-most popular soft drink after bottled water. this study examines the impact of managerial capability and strategic innovation on product lifecycle management and distribution success at the rtd tea company, as mediated by social media. this research adopts a quantitative methodology. the research sample was gathered utilizing a methodical procedure. participants in the poll were 160 operational and marketing managers from ready-to-drink beverage firms in jakarta, bogor, depok, bekasi, and tangerang. this work uses structural equation modeling as its analytic approach. the findings revealed that managerial capabilities had no significant effect on distribution performance, that managerial capabilities had no significant impact on product lifecycle management, that product lifecycle management had a significant effect on distribution performance, and that social media mediates plm distribution performance. distribution performance is significantly affected by the strategic innovation variable, while product life cycle management is affected dramatically by the strategic innovation variable. the proposed model suggested rtd tea company as a solution to the problems caused by the covid-19 pandemic. the research findings aid rtd tea company management in determining managerial capability and strategic innovation in product lifecycle management and distribution performance via social media. key words: managerial capability, strategic innovation, product life cycle management, distribution performance, social media. 1. introduction the food industry increased by 13.01% in the first three months of 2018. (yoy). it was much bigger than the growth in the first quarter of 2017, which reached 8.25%. (yoy). in contrast, the beverage industry, which expanded by 5.06 percent year-over-year in the first quarter of 2018, is in far better form than in 2017, when it continued to experience a decline in production (pramono et al, 2003). indonesia's soft drink business has a promising future due to the country's abundant raw material resources. additionally, lifestyle changes have affected people's beverage choices. according to the indonesian standard business field classification (henceforth kbli), the business group for soft drinks consists of bottled drinking water (also known as amdk), carbonated drinks, fruit juice, and ready-to-drink (rtd) tea, coffee, or milk, and isotonic drinks. during the covid-19 epidemic, trade and supply chain challenges have developed for ready-to-drink (rtd) tea, the second most popular soft drink option after bottled water. the closure of food service outlets, including independent outlets such as meatball stalls (warung bakso) and padang rice stalls (warung padang), as a result of social distancing, has a significant negative impact on the sales volume of this category, as these are beverages commonly consumed in food and beverage service that had recorded growth during the review period before pandemics. this study is conducted to contribute to the literature. the theory also because the studies before it didn't discuss the moderating role of social media among managerial capabilities and product life cycle. in this regard, this study aims to enrich the body of knowledge with significant implications regarding the role of social media and firms' innovation in improving the product life cycle. indeed, earlier studies in this research area neglected the important role of social media. furthermore, this study is significant because it is designed to provide realistic implications regarding the position of managerial abilities for rtd tea. in this regard, the implications of this study would enhance the marketing purpose of rtd tea and furnish the managerial skills of different individuals to improve the productivity. this study is significant because it aims to deliver actual information to rtd tea's upper management to improve the employees' grasp of advanced work skills, enhancing the managerial capabilities from product creation and product life cycle. therefore, this study contributes substantially to the body of knowledge and is a wellmanaged manuscript for the sustainable development of rtd tea with effective management skills. mailto:daman.sudarman@umj.ac.id mailto:d.kartini@unpad.ac.id mailto:arief.helmi@unpad.ac.id mailto:rita.komaladewi@unpad.ac.id agbioforum, 24(2), 2022 | 84 sudarman, kartini, helmi and dewi. — the moderating effect of social-media among managerial capabilities … 2. literature review differentiated marketing employs distinct marketing strategies for various market segments. a market segment is a group of individuals with similar traits and interests. market segmentation categorizes clients based on shared features. initiated by smith in 1956, it is a significant and widespread marketing activity that many firms employ to understand their clients better (abbasimehr et al, 2019; peker et al, 2017). businesses with properly defined client segments can create long-term relationships with a specific group of customers. numerous fields have made extensive use of market segmentation research, including ecommerce (xu et al, 2020), retail (son et al, 2021), banking (abbasimehr et al, 2019; firdaus et al, 2021), telecommunication (babaiyan et al, 2019; hwang et al, 2021), and education (abbasimehr et al, 2019; davari et al, 2019; sulastri et al, 2021). in addition to evaluating the temporal characteristics of a changing environment, firms must assess how this may affect their resources. businesses must exert effort to maintain their competitive advantage. among these efforts are: (1) developing and increasing resources; (2) developing skills; (3) developing and periodically transforming resources into capabilities; and (4) taking into account the temporal nature of resources and their effects, either in the form of different life cycle effects or the heterogeneity of the company's resources over time. companies must manage the product life cycle based on the product life cycle and account for every element that affects them (murad et al, 2022; yaqub et al, 2022). if the company's products have reached the decline stage, it will harm sales revenue and sales performance. therefore, product lifecycle management is necessary so that the firm does not incur losses or suffer a deterioration in performance (imran et al, 2021; shankar et al, 2021). product lifecycle management is a business activity with an integrated approach to business processes and information that supports the effective management of a product throughout its full life cycle, from inception until consumers no longer remember it. corporate procedures and practices, people, and technology impact product cycle management implementation. in other words, the company's resources impact product cycle management. the material, intangible, and human resources a business possesses fall into three categories: tangible, intangible, and human. this study aims to investigate intangible assets, including capacities and innovation. this investigation uncovered dynamic capabilities in the form of managerial competencies. managerial capability can be defined as the ability of a corporation to manage its resources, including tangible and human resources, as well as other intangible resources possessed by the organization, for the company to meet rapid mental changes and become competitive. thus, the organization will be able to attain both financial and non-financial performance excellence. in terms of innovation, the type of innovation observed in this study was referred to as strategic innovation. strategic innovation refers to the invention that can support the efforts and strategies of a business in achieving its objectives. strategic innovations that change existing firms into new enterprises significantly affect distribution performance (moldabekova et al, 2021). the foundation for the strategic innovation model created by schlegelmilch et al, (2003) indicates that strategic innovation can boost customer value and position the organization in a competitive setting. innovative business processes and activities that support the company's aims affect the company's marketing performance (kalay et al, 2015; laban et al, 2019; lilly et al, 2014; schroeder, 1993). marketing operations are another important business activity for the distribution performance of the company (abdelaziz, 2021; sari et al, 2021; sharma et al, 2021). social media marketing communications are the practical marketing actions in this study (bashir et al, 2022; leitner et al, 2022; rachmawati et al, 2022). social media is a medium that provides its users with a social network identity by allowing them to create profiles for social activities, as well as the ability to develop and share thoughts with other content users without the constraints of geography and time (carr et al, 2015; erdil et al, 2016; kaplan et al, 2010). social media has become an essential external and internal communication channel for firms and can even help improve distribution performance. based on critical analyses of the studies mentioned above, the following assumptions were created for this study: h1. there is a relationship between managerial capability and distribution performance. h2. there is a relationship between managerial capability and product life cycle management. h3. there is moderation of social media in the relationship between product life cycle management and distribution performance. h4. there is a relationship between product life cycle management and distribution performance. h5. there is a relationship between strategic innovation and distribution performance. h6. there is a relationship between strategic innovation and product life cycle management. h7. product life cycle management is mediating in the relationship between managerial capability and distribution performance. h8. product life cycle management is mediation in the relationship between strategic innovation and distribution performance. 3. research methods this study employs a quantitative methodology, focusing on observable and quantifiable aspects of social behavior. agbioforum, 24(2), 2022 | 85 sudarman, kartini, helmi and dewi. — the moderating effect of social-media among managerial capabilities … it also recognizes and evaluates the meaning that individuals convey through their actions and the generalizable effect. this study adheres to the positivist paradigm, which relies on objectivity and science to obtain knowledge . this study focuses on brief research, logical deductive exposure models, testing causal links to demonstrate the theory, employing survey instruments to collect research data, and generalizing the draw conclusions. members of the soft drink industry association that produce and market ready-to-drink tea in greater jakarta (jakarta, bogor, depok, tangerang, and bekasi) constitute the population of this study. the research sample was collected using a systematic method. this type of sample fits the study's requirements. this study's respondents are personnel in the structural field, so they are familiar with the organization's plan and can respond to questions regarding research factors. based on the sample, 160 operational managers and marketing managers from readyto-drink beverage firms in jakarta, bogor, depok, bekasi, and tangerang participated in the survey. this work uses structural equation modeling as its analytic approach . 4. research findings 4.1 outer model or measurement model the evaluation of the measurement model conforms to hair, risher, sarstedt, and ringle (2019), which includes four steps, including indicator reliability and convergent validity. the analysis findings, as shown in table 1, indicate that all construct reliability and cronbach alpha satisfied the recommended internal consistency reliability, which was greater than 0.70. (hair et al., 2019). the cronbach's alpha and composite dependability values of each construct can be used to determine to construct reliability. although the recommended value for composite reliability and cronbach's alpha is more significant than 0.7, because the loading factor limit used in development research is low (0.5), composite reliability values and low alpha cronbach's are still acceptable as long as the requirements for convergent validity and descriptive validity are met. based on the analysis findings in table 2, the value of cronbach's alpha and composite reliability of all constructs is likewise above 0.7, indicating that all constructs have satisfied the required dependability; hence, all constructs can be considered reliable (hair et al, 2019). following the recommendations, the composite reliability values of all variables fell between 0.70 and 0.95, with 0.70 as the lower limit and 0.95 as the upper limit, and there was no evidence of redundancy (hair et al, 2019). according to the reliability test results, it is possible to conclude that all indicators have shown internal consistency, meaning that they can be regarded as reliable for measuring the construct. 4.2 inner model test a) the goodness of structural fit models in this test, the value of the r square model indicates the predictive ability of the model based on the exogenous variables' ability to predict the endogenous variable. there are three categories for the value of r square: good, average, and poor. an r square value of 0.67 suggests a robust pls model, whereas a value of 0.33 indicates a moderate pls model, and a value of 0.19 indicates a weak pls model. table 1. convergent validity test results dp: distribution performance, mc: managerial capability, plm: product life cycle management, si: strategic innovation, sm: social media, ave: average variance extracted source: processed data (2021) if an r-squared value is equal to or higher than 0.75, it can be considered significant or strong. the relationship is moderate to strong when the r-squared value is between 0.50 and 0.75. the r-squared value is weak when it is between 0.25 and 0.50. however, if the r-squared value is above 0.9, the model is considered to overfit (hair et al., agbioforum, 24(2), 2022 | 86 sudarman, kartini, helmi and dewi. — the moderating effect of social-media among managerial capabilities … 2019). table 2. composite reliability test results cronbach's alpha composite reliability dp 0.939 0.961 mc 0.981 0.983 moderation_ 1,000 1,000 plm 0.985 0.986 si 0.984 0.985 sm 0.920 0.945 dp: distribution performance, mc: managerial capability, plm: product life cycle management, si: strategic innovation, sm: social media source: processed data (2021) table 3. r square model r square r square adjusted dp 0.819 0.807 plm 0.586 0.573 dp: distribution performance, plm: product life cycle management source: processed data (2021) based on the analysis results in table 3, the r square value of the distribution performance variable (dp) is 0.807. because the r square value is > 0.67, the model is stated that the model is vital in predicting the high and low of the company's distribution performance. furthermore, in the product life cycle management variable, an r square value of 0.586 is obtained; because the r square value is in the interval 0.33 0.67, the model is stated that the model is quite strong (moderate) in predicting the highs and lows of product life cycle management. table 4. q square value sso sse q² (=1-sse/sso) dp 300,000 84,621 0,718 mc 1100,000 1100,000 moderation_ 100,000 100,000 plm 1200,000 611,769 0,490 sa 1000,000 1000,000 si 1100,000 1100,000 sm 400,000 400,000 dp: distribution performance, mc: managerial capability, plm: product life cycle management, si: strategic innovation, sm: social media, sse: sum square error, sso: sum square observation, q2: predictive relevance source: processed data (2021) testing predictive relevance (q2) serves to validate the model. this measurement can be used if the endogenous latent variable has a reflective measurement model. q2 predictive significance values of 0.002 (weak), 0.15 (moderate), and 0.35 (strong). the predictive relevance (q2) result is considered to be good if the value is greater than zero, implying that the exogenous latent variable is good (appropriate) as an explanatory variable capable of predicting its endogenous variable, and conversely, if the predictive relevance (q2) result is less than zero, means that the model lacks predictive relevancy (hair et al., 2019). the results of this study's predictive relevance (q2) assessment are presented in table 4. based on the results of the analysis in the table above, the q square value of the company's distribution performance variable is 0.718; because the value of q square is in the interval > 0.35, the model is declared to have significant predictive relevance in predicting the high and low of the company's distribution performance. furthermore, on the product life cycle management variable, the q square value is obtained by 0.490; because the value of q square is in the interval > 0.35, the model is declared to have significant predictive relevance in predicting the highs and lows of product life cycle management. figure 1: pls model result source: processed data (2021) as can be observed from the estimation outcomes of the pls model using the above bootstrapping technique, almost all paths are significant, with a p-value < 0.05. the complete findings of this direct effect significance test are presented in the table below. for the findings of the study model to apply to a larger population, the importance of the correlations between the variables must be determined. this experiment was conducted using the bootstrapping technique, which involves resampling, and it was analyzed using smartpls 3.3. (ringle et al, 2016). agbioforum, 24(2), 2022 | 87 sudarman, kartini, helmi and dewi. — the moderating effect of social-media among managerial capabilities … table 5. partial effect test results path original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/stdev|) p values mc -> dp 0.146 0.165 0.074 1.975 0.024 mc -> plm 0.268 0.276 0.089 3.029 0.001 moderation -> dp 0.302 0.265 0.104 2.918 0.002 plm -> dp 0.524 0.505 0.091 5.728 0.000 si -> dp 0.183 0.181 0.069 2.657 0.004 si -> plm 0.332 0.329 0.097 3.404 0.000 dp: distribution performance, mc: managerial capability, plm: product life cycle management, si: strategic innovation, sm: social media source: data processing results (2021) table 6. indirect effect test results original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/stdev|) p values mc -> plm -> dp 0.141 0.139 0.051 2.769 0.003 si -> plm -> dp 0.174 0.168 0.062 2.783 0.003 dp: distribution performance, mc: managerial capability, plm: product life cycle management, si: strategic innovation source: processed data (2021) agbioforum, 24(2), 2022 | 88 sudarman, kartini, helmi and dewi. — the moderating effect of social-media among managerial capabilities … the empirical tests use significance and coefficient values to assess if a hypothesis is supported. since the substance of this hypothesis is directional, the direction of the coefficient must correspond with the initial hypothesis's direction. since the direction of influence was specified in the hypothesis, a statistical test with a single tail was conducted. suppose the bootstrapping-derived t-statistic is greater than the t-table value of 1.645 (at a significance level or alpha of 0.05). the link between the variables can be considered significant (ringle et al, 2016). the analysis of this study model was conducted using a one-tailed bootstrapping test with a significance level of 0.05. after evaluating whether or not each path is important, the size of the coefficient (standardized coefficient) associated with each path or path is evaluated and compared. if the test results meet these two conditions, it can be said that the research hypothesis is supported. the six hypotheses provided in this study are all supported, as demonstrated in table 5. this is concluded by a significant correlation between the value of the coefficient and the proposed direction of the hypothesis. figure 2: social media moderation the t-value value >1.65 is stated to influence mediation and p-value (hair et al., 2019). table 6 shows that product lifecycle management can moderate marketing capability and innovation strategy toward distribution performance. the results of the analysis in figure 3 show that the role of social media in the influence of product life management on the company's distribution performance obtain the pvalue e < 0.05, the statistical t > 1.65 and the positive path coefficient, which means the work environment has a positive and significant effect on dp, this means that the more moderation, the higher the dp as well. furthermore, this relationship is explained in figure 2. figure 3: effect of product lifecycle management on distribution performance moderated by social media 5. discussions 5.1 the effect of managerial capability on distribution performance the results of the pls calculation show that managerial capability does have a positive and significant influence on the company's distribution performance. the t statistic of managerial capability is 1.975 > 1.96. as a result, it can be concluded that the first hypothesis is supported. this research supports previous research, which has proven that managerial capability supports companies in achieving superior performance, both financial and non-financial performance (helfat et al, 2015; ng, dayan et al, 2019; tseng et al, 2014). managerial capability is a company's capacity to manage its tangible and human resources and other intangible resources to adapt to environmental changes and maintain a competitive advantage. consequently, the company will be able to accomplish better financial (including customer satisfaction and client growth) and non-financial (which includes sales growth and profit from sales) distribution performance (napitupulu et al, 2020; pinna et al 2018). 5.2 the effect of strategic innovation on distribution performance the path coefficient value for strategic innovation's effect on distribution performance is 0.183 with a p-value of 0.004. because the p-value is less than 0.05, the impact of strategic innovation on distribution performance is statistically significant. this reinforces findings from prior research (fartash et al, 2012) that innovation is a means to achieve sustained performance and growth (fartash et al, 1 1.5 2 2.5 3 3.5 4 4.5 5 low plm high plm d p moderator low sm high sm agbioforum, 24(2), 2022 | 89 sudarman, kartini, helmi and dewi. — the moderating effect of social-media among managerial capabilities … 2012). in contrast, in spain, hervas-oliver et al (2014) conclude that r&d effort is not positively correlated with production performance. moreover, according to j. chen et al(2018), who employ a process model, namely that the innovation strategy affects consumer satisfaction and then affects financial performance (innovation strategy consumer satisfaction financial performance), then the likely influence of the innovation strategy on distribution performance is a process model. the foundation for the strategic innovation model proposed by schlegelmilch et al. (2003) demonstrates that strategic innovation will boost customer value and position the organization concerning the competition. innovative business procedures and activities that complement the company's strategic direction affect its distribution performance (kalay et al, 2015; laban et al, 2019; lilly e, 2014)t al. 5.3 the effect of product lifecycle management on distribution performance based on the above test results, the path coefficient of product lifecycle management on distribution performance is 0.524 with a significance level of 0.000. this indicates that product lifecycle management and distribution performance have a positive and statistically significant link. therefore, the product lifespan will determine the distribution performance. bakker supports this finding. wang et al (2014) and li et al (2015), demonstrate that product lifecycle management has a positive effect on new product development performance, process performance, and product performance due to the harmonization of failures caused by limited knowledge of the business model, products and services offered by the company, functionality, usability, and cost of the company. hofer creates descriptive propositions for each stage of the product life cycle and the environmental and organizational elements that exert the most significant strategic influence on the business at each level (b. chen et al 2017). thus, the product life cycle is crucial in determining a business's longevity. therefore, we require the appropriate product lifecycle management pattern to support the organization's business plan and fulfil its objectives. 5.4 the effect of managerial capability on product life cycle management the results showed that managerial capability positively and significantly affected product life cycle management. the coefficient value obtained in the study is 0.268 with a p-value of 0.001 (< 0.05). thus, hypothesis 4 states that managerial capability has a positive and significant impact on product lifecycle management is accepted. hence, it can be noted that the higher the managerial capability, the better the product life cycle. this finding is in line with ng et al. (2019). they say that managerial capability is a form of resource that represents the capacity of managers to run the organization and make and implement strategic and operational decisions by directly influencing and coordinating resources and inputs, consolidating skills and technology into business competencies, and enabling them to react quickly to opportunities environmental changes. managerial capabilities will also be able to reduce and respond promptly to the product life cycle. empirical studies have also revealed that the critical success factors for implementing product cycle management are business processes and practices, people, and technology (gurman et al, 2017). 5.5 the effect of strategic innovation on product life cycle management the study yields a positive coefficient value of 0.332 with a significance level of 0.000. based on these findings, it was determined that strategic innovation is a significant element in enhancing the product lifecycle. strategic innovation is a multi-functional approach that integrates creativity, competencies, and organizational disciplines to generate breakthrough new ideas that drive business expansion . this statement indicates that strategic innovation impacts the organization's long-term viability and capacity to remain competitive. this remark explains the relationship between strategic innovation, product life cycle, and product cycle management. prior empirical research has also demonstrated that company procedures and practices, people, and technology are essential success factors for implementing product cycle management (gurman et al, 2017). business processes and practices, people, and technology are resources that must be managed and turned into new goods, processes, or practices that can significantly alter the evolution of markets and industries . strategic innovation is the creation of value through the application of relevant knowledge and resources to the transformation of ideas into new products, processes, or practices with the potential to have a significant transformative effect on the evolution of markets and industries, resulting in ground-breaking innovative ideas that drive business growth and play a crucial role in the company's sustainable development. 5.6 the role of product lifecycle management in mediating the influence of managerial capability and strategic innovative on distribution performance based on the overall study findings in table 6, it is possible to conclude that managerial and strategic innovative capabilities affect product life cycle management. in contrast, product life cycle management has been shown to affect distribution performance. this means that product lifecycle management has the potential to mediate the effect of organizational and strategic innovativeness on the company's distribution performance. product lifecycle management that mediates the effect of managerial capability on the company's distribution performance has obtained a p-value of 0.003 < 0.05 with a agbioforum, 24(2), 2022 | 90 sudarman, kartini, helmi and dewi. — the moderating effect of social-media among managerial capabilities … t statistic of 2.769 > 1.96 and a positive path coefficient of 0.141, which means that product lifecycle management mediates the positive effect of managerial capability on distribution performance of the company, hence the better the company's managerial capability, the better the product lifecycle management which will further have an impact on the better the company's distribution performance. product lifecycle management mediates the effect of strategic innovation on the company's distribution performance has obtained a p-value of 0.003 < 0.05 with a t statistic of 2.783 > 1.96 and a positive path coefficient of 0.174, which means that product lifecycle management mediates the positive effect of strategic innovation on distribution performance of the company, hence the better the strategic, innovative company, the better the product lifecycle management which in turn will have an impact on the better the company's distribution performance. 5.7 the role of social media in moderating the influence of product lifecycle management on distribution performance this study's findings highlight the significance of social media in enhancing the impact of product lifecycle management on a company's distribution performance. the results of the analysis depicted in figure 2 reveal that the path tying the function of social media to the influence of product life management on the distribution performance of the company has a p-value of 0.002, a t statistic of 2.918, and a positive path coefficient of 0.302. since the work environment has a favorable and significant effect on the distribution performance of a firm, the more social media activity as moderation, the greater the distribution performance of the organization. according to the analysis's findings, social media is found to mediate the association between product lifecycle management and a company's distribution performance. this is backed by a prior study indicating that active consumer participation is crucial for the company's success. in addition, there is some interest among businesses in employing social media technologies, but many companies are unaware of how to use them effectively. however, the potential to engage with vast audiences, transforming one-to-one or one-to-many conversations into many-to-many communications, has piqued the interest of entrepreneurs, and the use of social media tools has expanded dramatically over the past decade (haefliger et al, 2011). social media has empowered customers to participate actively in the exchange process, as their ideas will be acknowledged and can eventually influence the evolution of products and services. the presence of social media has a significant impact on human activities, including marketing. social media marketing is highly effective and can reach a wide range of demographics, from adolescents to adults. as a result of the existence of social media, additional critical business operations for performance companies include marketing. in this study, the marketing activity examined is communication via social media. for information about teh pucuk harum's products, each tab provides the variants of teh pucuk harum, activities, and events that teh pucuk harum has conducted. in addition, the website features a tab labeled "contact" that contains complete information in the form of names and cellphone sales numbers from every city in indonesia. this is designed to make it easy for parties who wish to collaborate or become distributors and sellers to obtain information on how to acquire these products. this will facilitate and streamline the distribution of the pucuk harum items automatically. additionally, this website is immediately linked and integrated with facebook and twitter's social media platforms. social media is a medium that gives its users a social network identity through the creation of profiles for social activities, as well as allowing its users to develop and share opinions with content users regardless of space or time constraints (carr et al, 2015; erdil et al, 2016; kaplan et al, 2010). a company's external and internal communication media is social media, which is highly significant and can even help boost the company's distribution performance (ahmad et al, 2019; alarcon-del-amo et al, 2017). according to wang et al (2017), using social media moderates the impact of customer relationship management capabilities on the distribution performance of a company. this finding is similar to the results of other studies (nisar et al, 2016; pentina et al, 2013), indicating that businesses use social media to enhance their brand image and awareness. in addition, social media influences the company's branding strategy, which leads to ewom (electronic word of mouth) (barreda et al, 2015) because ewom draws consumers and boosts buy intent (xie et al, 2016). consequently, social media can enhance distribution performance (ahmad et al, 2019; alarcon-delamo et al, 2017; cetinkaya et al, 2018; kim et al, 2018; tp singh et al, 2017; tajvidi et al, 2021). similarly et al, (2017) demonstrate that the utilization of social media moderates the impact of customer relationship management capabilities on distribution performance. in contrast to research conducted by haavisto (2012), which indicates that the active participation of consumers is crucial for a company's success, this study argues that consumers' participation is unnecessary. according to haavisto (2012), corporations are enthusiastic about utilizing social media platforms, but many businesses are unsure how to incorporate them properly. however, the potential to engage with vast audiences, transforming oneto-one or one-person-to-many contact into many-personto-many communication, has piqued the interest of entrepreneurs, and the use of social media tools has expanded dramatically over the past decade (haefliger et al, 2011). agbioforum, 24(2), 2022 | 91 sudarman, kartini, helmi and dewi. — the moderating effect of social-media among managerial capabilities … the current investigation includes both contributions and new results (novelty). first, this is the first empirical study that directly and simultaneously researches managerial capability, strategic innovation, product life cycle management, social media, and distribution performance variables in a research model, which has not been done by previous researchers who served as the empirical reference for this study, so this study can be considered novel. this is the first empirical study to explore the influence of managerial capability and strategic innovation variables on distribution performance as mediated by product life cycle management variables. according to the findings, product lifecycle management fully mediates the effects of managerial capability and strategic innovation on distribution performance. this study demonstrated that strategic innovation is essential in enhancing distribution performance across the product life cycle. consequently, this conclusion modifies the model proposed by s. singh et al, (2020) by merging two primary components, namely people (culture) and technology, in the context of strategic innovation to provide a new perspective when evaluating the product life cycle. 6. conclusions this research aimed to explore the impact of managerial capability and strategic innovation on product lifecycle management and distribution performance at an rtd tea company, as moderated by social media. based on the data and discussion, the following conclusion may be drawn: 1) the managerial capability of rtd tea companies has a positive and significant effect on distribution performance. thus, the greater a company's managerial capability, its distribution performance is more important. 2) the company's strategic innovation has a favorable and significant impact on distribution performance. therefore, the higher the rtd tea company's distribution performance, the greater its capacity for product innovation. product lifecycle management has a significant and positive impact on distribution performance. therefore, the distribution performance of the rtd tea company is enhanced by product lifecycle management. 4) the managerial capability of the rtd tea company has a good and substantial influence on distribution performance. therefore, the more a company's managerial capability, the better its product life cycle management. 5) the company's strategic innovation has a favorable and significant impact on distribution performance. product life cycle management is more effective the more influential the rtd tea company's capacity for product innovation. 6) social media are capable of mitigating the impact of product life management on distribution performance. product lifecycle management increases a company's marketing success when correctly applied. rtd tea beverage firms can use social media to introduce their products to a large audience and combat negative preconceptions of rtd tea. 7) this study includes a variety of contributions and new findings (novelty). this is the first study to examine the relationship between a manager's capacity to handle various activities, strategic innovation, product lifecycle management, social media use, and distribution performance within a single model. 8) additionally, this study is the first empirical inquiry to examine the influence of managerial skill, strategic alliances, and strategic innovation variables on distribution performance via product lifecycle management variables. according to the findings, product lifecycle management mediates one-third of the links between distribution success and the variables of managerial skill, strategic alliances, and strategic innovation. 9) finally, this study proved that strategic innovation significantly enhances distribution performance throughout the product's life cycle. similarly, this model can investigate the relationship between strategic innovation and the product life cycle model proposed by misra, s. c., and chan. this model has not been explicitly studied previously. as a result of these findings, the model suggested by sight et al. (2019) has been amended to include two key components in the context of strategic innovation: people (culture) and technology. this has been done to present a variety of perspectives on the product life cycle research process. 7. implications 7.1 theoretical implications this study has significant theoretical ramifications that have not been addressed in previous research. this study contributes to the body of knowledge by demonstrating that social media information is crucial for the comprehension and education of managers since it influences their behavior. in addition, this study shows the relationship between social media as a moderator and managerial qualities for rtd tea, which has not been covered in any previous research. the association illuminated by this study would enrich the literature regarding managerial talents for performance enhancement. in addition, the ramifications of this study would enhance the relationship of different variables taken into account within the study's framework to provide more significant information regarding the influence of social media as a moderator on managerial skills for improving the performance of rtd management. in addition, this study would promote the state of knowledge by offering a comprehensive grasp of the knowledge by highlighting the moderating effect of social media as an influencer. this study's contribution to the literature will strengthen future research's understanding of the relationship between different variables and give correct information for future studies based on this study's contribution to the literature. agbioforum, 24(2), 2022 | 92 sudarman, kartini, helmi and dewi. — the moderating effect of social-media among managerial capabilities … 7.2 practical implications as this study shows the qualities of social media as a moderator to enhance managerial competencies, it is crucial to analyze the practical consequences of this research. indeed, to increase the performance of managers, the top management must deliver accurate and timely information through social media. it is true that social media is an advanced communication tool that facilitates communication between management and consumers. the feedback and suggestions of customers on social media are essential for introducing innovations into the working process and providing actual solutions to consumers' problems. in this regard, rtd tea managers can contact consumers on social media to obtain all relevant information about innovation and the product life cycle. in addition, social media helps provide accurate information regarding the role of management in various businesses; hence, the management of rtd tea should consider this vital role to improve performance and advance results in competitive marketplaces. in mature markets, managerial talents are crucial for enhancing product and service performance to please consumers. 8. future directions this study has, without a doubt, addressed the significance of many variables for product life cycle management and distribution performance. however, the role of information communication technology is not examined in this study; hence, future research must concentrate on the part of information communication technology in distribution performance. in addition, this study does not examine the function of low distribution charges; hence, future research must concentrate on the role of low distribution charges in distribution performance. references abbasimehr, h., & shabani, m. 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(2022). role of web design, epayment and e-traceability with mediating role of consumer behavior to develop customer satisfaction for emerging bricks and clicks business model trends in south punjab. review of education, administration &amp; law, 5(2), 123-135. doi:https://doi.org/10.47067/real.v5i2.224 https://doi.org/10.1108/jeim-05-2012-0025 https://doi.org/10.1016%2fj.intmar.2017.02.004 https://doi.org/10.1016%2fj.intmar.2017.02.004 https://doi.org/10.1108/ijchm-06-2015-0290 https://doi.org/10.1108/ijchm-06-2015-0290 http://ojs.jecr.org/jecr/sites/default/files/2020vol21no3_paper1.pdf http://ojs.jecr.org/jecr/sites/default/files/2020vol21no3_paper1.pdf https://doi.org/10.47067/real.v5i2.224 agbioforum, 24(1): 1-12. ©2022agbioforum economic impact of climate change on agriculture: a case of vietnam nguyen van huong faculty of economics, hung yen university of technology and education (utehy), hung yen, viet nam email: vanhuong75hy@gmail.com bui thi minh nguyet * vietnam national university of forestry, xuan mai, ha noi, vietnam email: minhnguyetfuv@gmail.com hoang van hung faculty of economics, hung yen university of technology and education (utehy), hung yen, viet nam email: davidhoang8585@gmail.com hoang minh duc faculty of economics, hung yen university of technology and education (utehy), hung yen, viet nam email: duchoasunghau@gmail.com nguyen van chuong university of financial – business administration (ufba), hung yen, viet nam email: nguyenchuong.edu@gmail.com do minh tri nguyen van linh political school, hung yen, viet nam email: minhtritct@gmail.com phung van hien national academy of public administration (napa), ha noi, viet nam email: phunghiennapa@gmail.com * correspondence: bui thi minh nguyet email: minhnguyetfuv@gmail.com food security, agricultural exports, and livelihoods have improved by rapid agricultural expansion in the previous 30 years. in the coming decades, warming trends and human pressures are expected to exacerbate the impact of climate change on agriculture. a time series of data from 1990 to 2020 examines the economic effects of climate change on vietnamese farm production. after using the augmented dickeyfuller and philips-perron unit root tests, the ardl bounds testing technique estimates short and long-run cointegration. they found long-run cointegration between the variables. a positive influence of co2 emissions is identified, although negative impacts of average temperature and rainfall are found. but only in the short term can energy consumption benefit agriculture. non-climatic factors like crop production and fertiliser consumption have beneficial shortand long-term impacts on agriculture production and yield. juselius jhansen as well as proving long-term cointegration between variables. the report advises the vietnamese government to create and implement many adaptation programmes to preserve the agriculture industry from climate change. key words: climate change; agriculture output; vietnam; ardl bound testing approach. 1. introduction climate change is one of the most pressing issues of the modern era, as it has significantly impacted or is in the process of affecting ecosystems. on the planet, climate change has always been a continuous process. however, over the last century or so, the rate of change has accelerated dramatically. since the nineteenth century, the mean temperature has increased by 0.9 degrees celcius, owing primarily to ghg emissions caused by human activity. this is projected to rise to 1.50c or possibly higher by 2050 due to the way deforestation is spreading, greenhouse gas emissions are increasing, and air, soil, and water resources are becoming contaminated. droughts, food shortages, heat waves, erratic precipitation patterns, and other extreme events have worsened due to the world's historic temperature rise (arora, 2019; baloch et al., 2022; nawaz et al., 2021). while the consequences of climate change are widespread, their profound impact on the agricultural sector, which is the bedrock of food production and the global economy, is now abundantly clear. agriculture is one of the sectors most vulnerable and sensitive to climate change. this sector creates jobs, supplies raw materials to manufacturing, ensures food security, and contributes foreign currency to an economy's foreign trade. according to surveys, the agriculture sector has grown slowly in recent years due to climate change. variations in climatic variables such as precipitation, temperature, the intensity and frequency of extreme weather events, co2 levels in the atmosphere, and sea-level rise all have a direct effect on agricultural products and livestock (chien, pantamee, et al., 2021; dumrul, 2017; nawaz et al., 2021). significant climatic changes occurring faster have posed a threat to global food security. crop yield per hectare is increasing at a much slower rate than population growth, according to the world food programme's (wfp) 2018 report. according to a recent study, if current greenhouse gas emissions and climate change trends continue, major cereal crop production will decline by 2100. (20 to 45 percent maize yields, 20 to 30 percent in rice, and 5 to 50 percent in wheat). as a result, if current trends continue, crop losses will accelerate shortly, resulting in decreased production, increased food costs, and difficulty meeting the needs of a growing population (arora, 2019; chien, sadiq, et al., 2021; shair et al., 2021). while climate change is a global phenomenon, its effects mailto:vanhuong75hy@gmail.com mailto:minhnguyetfuv@gmail.com mailto:davidhoang8585@gmail.com mailto:duchoasunghau@gmail.com mailto:nguyenchuong.edu@gmail.com mailto:minhtritct@gmail.com mailto:phunghiennapa@gmail.com mailto:minhnguyetfuv@gmail.com agbioforum, 24(1), 2022 | 2 huong, nguyet, hung, duc, chuong, tri and hien — economic impact of climate change on agriculture a case of vietnam vary according to location, country, sector, and community. the poor and rural communities in developing countries are disproportionately affected by climate change, as they lack adaptive capacity and access to alternative production resources (chien, pantamee, et al., 2021; huong, bo, & fahad, 2019; huong, yao, & fahad, 2019; sun et al., 2021). the same is true for vietnam. due to its high population density, long coastlines, and economic activities such as agriculture, natural resource extraction, and forestry, it is associated with the world's most vulnerable countries to climate change (huong, bo, et al., 2019; li et al., 2021; xiang et al., 2021). agriculture is a critical sector in vietnam because it accounts for approximately one-fifth of gdp, employs around half of the workforce, and provides income to about three-quarters of the population (chien, sadiq, et al., 2021; t. q. trinh, rañola, camacho, & simelton, 2018). agriculture provides the majority of households with their primary source of income, and production is highly dependent on natural resource exploitation (huong, bo, et al., 2019; zhuang et al., 2021). climate change's effects on agriculture in vietnam would result in a 0.7%–2.4% reduction in total gdp by 2050, as it affects crop production both directly and indirectly via variability in water availability, potential evapotranspiration, and irrigation (liu, lan, chien, sadiq, & nawaz, 2022; t.-a. trinh, feeny, & posso, 2021). additionally, low literacy, traditional farming methods, insufficient infrastructure development, and transportation problems contribute to the county's climatic sensitivity. as a result, a climate change impact assessment on agriculture will assist in clarifying perceptions of the issues, quantifying the impact, and helping in the development of plans for timely response (chien, sadiq, et al., 2021; huong, yao, et al., 2019). numerous studies have been conducted in the existing literature to examine the effects of climate change on developing and developed economies. on the one hand, considerable research has been conducted on the relationship between climatic change as measured by precipitation and temperature and agriculture in various economies using a variety of econometric methodologies (dumrul, 2017), (chandio, jiang, & rehman, 2020), and (huong, yao, et al., 2019). (bozzola, massetti, mendelsohn, & capitanio, 2017; nawaz et al., 2021). on the other hand, an increasing number of scholars have examined the relationship between natural disasters and agriculture. these studies acknowledged that the economic consequences of natural disasters might be greater than previously recognised due to their magnitude and intensity (coulibaly, islam, & managi, 2020). (klomp & hoogezand, 2018) and (blanc & strobl, 2016; keerthiratne & tol, 2018). this article contributes to the body of knowledge by demonstrating the effect of climate change on agriculture in vietnam, which has remained relatively understudied in terms of the climate changeagriculture relationship in the literature. this paper seeks to quantify the economic impacts of climate change on agriculture in vietnam from 1990 to 2020. vietnam is an important case study due to its heavy reliance on agriculture and vulnerability to climate change and natural disasters. agriculture has established itself as a significant sector, accounting for over 21% of gdp and employing more than 40% of the workforce. in 2020, agriculture, forestry, fishing, and agriculture contributed 14.85 percent to gdp. with approximately 17.72 million workers, agriculture accounted for 33.06 percent of total employment in vietnam (le toan et al., 2021; mohsin, kamran, atif nawaz, sajjad hussain, & dahri, 2021). it's worth noting that most agricultural activities take place in rural areas, making rural households particularly vulnerable to climate change and climate shocks. as a result, a study of the economic effects of climate change on agriculture in vietnam is unquestionably necessary (t.a. trinh et al., 2021). the remainder of the paper is arranged in the following manner. section 2 summarises the pertinent existing literature. section 3 contains the data and the empirical methodology used. the fourth section discusses the empirical findings. the concluding section 5 includes the paper's conclusion and some worthwhile recommendations. 2. review of existing literature as more agronomists and economists began rigorously examining the effect of various climate elements on agricultural production, research on the impact of climatic variations on agricultural output gained prominence. for example, (zhao et al., 2017) investigated the effect of water availability and temperature on crops using a variety of methodologies, including experiments. according to the findings, crop yields are being threatened by rising temperatures and water variability. even though their research took various approaches, their results demonstrated that increasing temperatures harmed sitescale, country-level, and global crop productivity. wielogorska et al. (2019) assessed 140 wheat, sorghum, and maize samples in somalia using the uplc-ms and ms multi-mycotoxin approaches. during the whole-crop research, they discovered mycotoxins, which were poisonous substances produced by certain types of fungus. these toxins were produced by fungi that grew on crops and were aided by severe environmental conditions such as high temperatures, which reduced crop yields before and after harvesting. furthermore, (karimi, karami, & keshavarz, 2018) examined the impact of climate change on iran's agriculture sector and the government's and farmers' existing adaptation efforts. the authors concluded that water endowments and changes in rainfall had a significant impact on crop yield and water requirements, and farm family welfare and income. in terms of adaptability, the government was found to have made significant progress in increasing agricultural production and irrigation expansion by using cutting-edge technology, developing agbioforum, 24(1), 2022 | 3 huong, nguyet, hung, duc, chuong, tri and hien — economic impact of climate change on agriculture a case of vietnam new technologies, and reforming policies. (chavas, di falco, adinolfi, & capitanio, 2018) examined the effect of weather on agricultural output distribution (corn and wheat yields) in seven italian provinces from 1900 to 2014. the quantile-autoregression model revealed that weather impacts were asymmetric, with a greater impact on the lower tail of the distribution than on the upper tail. it was discovered that adverse weather has a persistent and significant effect on agricultural productivity. (migliore, 2019) attempted to quantify the impact of climate variations on permanent crop cultivation in southern italy. the authors demonstrated a significant effect of climate change in the region by assembling climate projections from 2021 to 2050. numerous researchers have recently used various econometric techniques to estimate the impact of climate change on agriculture or crop yields. among these, the ardl bound testing technique has been extensively used in studies to evaluate the short and long run impacts of climate variability on agriculture. for example, (dumrul, 2017)) used the ardl bounds testing technique to examine the effects of climate variations on agricultural output in turkey from 1961 to 2013. precipitation was found to have a significant positive effect on agriculture in turkey, whereas temperature had a negative impact. (chandio, jiang, & rehman, 2020) used an ardl bound testing approach to examine how climate change affected agriculture output in china from 1982 to 2014. they discovered that rainfall and temperature had a negative long-run effect on agriculture production. in contrast, fertilizers, energy consumption, and land area under cereal crops had a significantly positive long-run effect on agriculture production in both the short and long run estimations. according to the study's findings, rainfall has been shown to improve crop production over time. however, it was discovered that it had a detrimental effect in the short run. the temperature harmed crop production in both the short and long term, but co2 emissions has a negligible impact on crop production. (attiaoui & boufateh, 2019) estimated the shortand long-term effects of climate change on tunisia's cereal cropping. the results of ardl bound testing indicated that climate issues harmed cereal output and that the negative impact of climate were felt most acutely during periods of low rainfall, while temperature levels were favourable for cereal crop production. (ahsan, chandio, & fang, 2020) examined the effect of climate variation on cereal crop production in pakistan using ardl and johansen cointegration tests. the researchers observed a positive long-run cointegration between cereal crop production and co2 emissions and bidirectional causality between the variables in their analysis. additionally, (asumadusarkodie & owusu, 2017; sarkodie, 2017) established a bidirectional causal relationship between co2 emissions and cereal crop production in ghana. additionally, the ricardian approach has been extensively used to estimate the agriculture-climate change nexus. (huong, yao, et al., 2019) estimated the impacts of climate change on agriculture in the northwestern region of vietnam using the ricardian equivalence approach. the authors examined the effects of rainfall and temperature change on northwest farming using primary data collected through vietnam household living standards surveys and discovered a significant nonlinear and inverted ushaped relationship between weather variables and household revenues. net revenue decreased during the dry season as rainfall and temperature increased. for pakistan, (sadiq, saboor, mohsin, khalid, & tanveer, 2019) determined the impact of climate change on agriculture production using a ricardian evaluation approach. they demonstrated that total precipitation and diurnal temperature decreased the farm's net revenue per hectare, particularly in rain-fed fields. the findings indicated that rain-fed farms appeared more susceptible to climate change than irrigated farms. in a similar vein, (bozzola et al., 2017) assessed the impact of temperature warming on agriculture in italy using the ricardian equivalence approach and discovered that a minor increase in temperature over a year had no significant effect on land values in italy. summer warming has a detrimental impact, whereas spring and autumn warming is having a beneficial impact. a normal marginal increase in precipitation over the year was not significant at the national level but was significant at the regional level. in the case of vietnam (t. q. trinh et al., 2018), different factors influencing farmers' adaptations to climate change in agricultural output were analysed using multivariate probit and binary logit models. the authors concluded that while farm size and climate change training significantly impacted farmers' climate change adaptation decisions, membership in local organisations and labour availability had no significant effect on these decisions. the impact of climate change on european agriculture was estimated using continental scale ricardian analysis (van passel, massetti, & mendelsohn, 2017). according to the findings, european farms were slightly more vulnerable to warming than those in the united states. (sultan, 2021) quantified the impact of climate change on mauritius' agriculture. based on cross-sectional farm data from 392 farmers and a ricardian approach, the findings indicated that agriculture was negatively affected by mean precipitation and summer temperature. (chandio, jiang, & rehman, 2020) examined the impact of climate change on rice production in pakistan. surprisingly, their study found that co2 emissions positively affected rice production in both the short and long run. another study (chandio, jiang, & rehman, 2020) found that co2 emissions and mean temperature had an inverse relationship with cereal production in turkey. in contrast, mean rainfall had a positive relationship with cereal production in the short and long run. 2.1 literature gap the literature contains a sufficient number of evidence for the impact of climate change on agriculture in various agbioforum, 24(1), 2022 | 4 huong, nguyet, hung, duc, chuong, tri and hien — economic impact of climate change on agriculture a case of vietnam economies and estimation methods. however, in terms of this investigation, the vietnamese economy remained under-researched in the literature (huong, yao, et al., 2019; t.-a. trinh et al., 2021). (t.-a. trinh et al., 2021). furthermore, to our knowledge, no empirical research has been conducted in vietnam to examine the effect of climate change on agricultural output using the ardl bound testing approach. as a result, this paper seeks to address this shortcoming by examining the short and longrun effects of climate change variables on agriculture in vietnam. 3. data and employed methodology this article discusses critical variables that significantly impact agricultural production in vietnam. previous research by (nasrullah et al., 2021), (chandio, jiang, & rehman, 2020), and (warsame, sheik-ali, ali, & sarkodie, 2021) indicated that various natural and technological factors have a significant impact on agricultural production. as a result, the study uses rainfall, average temperature, co2 emissions, and energy consumption (all of which are climate-changing variables), land area under cereal cropping, and fertiliser consumption (all of which are non-climatic variables) as explanatory variables, and agriculture production as the dependent variable. annual data for the variables mentioned above have been gathered from the world bank from 1990 to 2020. (2021). to conduct empirical analysis, all variables are transformed into logarithmic forms. table 1 contains the data description for the variable series, whereas figures 1–7 depict the time trends for the study variables. table 1: detailed description of the variables variables measurement data source agriculture production agriculture value added (% of gdp) world development indicators co2 emission co2 emissions per capita (metric tons) world development indicators rain fall mean rainfall annual (mm) world development indicators temperature average annual temperature (°c) world development indicators area under crop production land under cereal crops (hectares) world development indicators energy consumption energy consumption (kg of oil equivalent per capita) world development indicators fertilizer consumption fertilizer’s consumption (kilograms per hectare of arable land) world development indicators figure 1: time plot of agriculture production ( lnagri) over 1990-2020 figure 2: time plot of land area under cereal crop ( lncl) over 1990-2020 figure 3: time plot of fertilizer consumption (lnfc) over 1990-2020 2 .8 3 3 .2 3 .4 3 .6 3 .8 la g ri 1990 2000 2010 2020 time 0 1 2 3 4 llc 1990 2000 2010 2020 time 0 1 2 3 4 lfc 1990 2000 2010 2020 time agbioforum, 24(1), 2022 | 5 huong, nguyet, hung, duc, chuong, tri and hien — economic impact of climate change on agriculture a case of vietnam figure 4: time plot of energy consumption (lnec) over 1990-2020 figure 5: time plot of rainfall (lnrain) over 1990-2020 figure 6: time plot of average temperature (lntemp) over 1990-2020 figure 7: time plot of co2 emission (lnco2 ) over 19902020 4. methodology (charemza, 1992) pioneered the ardl technique, which was later improved by (m. h. pesaran, shin, & smith, 2001) and (m. h. pesaran, & shin, y, 1995).the ardl technique outperforms several conventional cointegration techniques, including the chandio, jiang, rehman, and rauf (2020) and engle-granger cointegration approaches. it presupposes a small sample size and simultaneity biases in the variable associations. traditional cointegration techniques have a significant drawback. they require that all variables in this study are non-stationary or unit root at the level, i.e., i(0), but stationary in any similar order. this problem is solved by utilising novel cointegration techniques such as the ardl, which is insensitive to the order in which variables are integrated, whether at the level, first difference, or mixed integration order. this current approach is advantageous because it enables the empirical model to select the optimal number of lags. these estimable properties support the ardl technique's use in achieving reliable estimations. the economic impact of climate change on agriculture in vietnam from 1990 to 2020 is studied using the following empirical model: agrit = f (raint, tempt, co2t, clt, ect, fct) (1) where agri= agriculture production, rain= rain fall, temp= average temperature, cl= cereal crops land area, ec= energy consumption, fc= fertilizer consumption and co2= carbon dioxide emission. the model, after transforming the variables into logarithmic form, is specified in the econometric form as: 𝑙𝑛𝐴𝐺𝑅𝐼𝑡 = 𝛼0 + 𝛼1𝐶𝑂2𝑡 + 𝛼2𝑙𝑛𝑅𝑎𝑖𝑛𝑡 + 𝛼3𝑙𝑛𝑇𝑒𝑚𝑝𝑡 + 𝛼4𝑙𝑛𝐸𝐶𝑡 + 𝛼5𝑙𝑛𝐹𝐶𝑡 + 𝛼6𝑙𝑛𝐶𝐿𝑡 + 𝜀𝑡 (2) the ardl model has two primary steps for evaluating the long-term relationship. the initial step is to analyze if the study variables have a long-term relationship. equation (3) specifies the ardl model as follows: .5 1 1 .5 2 2 .5 3 le c 1990 2000 2010 2020 time 7. 45 7. 5 7. 55 7. 6 lra in 1990 2000 2010 2020 time 3. 18 3. 19 3. 2 3. 21 3. 22 3. 23 lte m p 1990 2000 2010 2020 time 0 1 2 3 4 lc o 2 1990 2000 2010 2020 time agbioforum, 24(1), 2022 | 6 huong, nguyet, hung, duc, chuong, tri and hien — economic impact of climate change on agriculture a case of vietnam ∆𝑙𝑛𝐴𝐺𝑅𝐼𝑡 = 𝛼0 + ∑ 𝛼1𝑘∆𝑙𝑛𝐴𝐺𝑅𝐼𝑡−𝑗 + 𝑟 𝑖=1 ∑ 𝛼2𝑘∆𝑙𝑛𝐶𝑂2𝑡−𝑗 + 𝑟 𝑖=0 ∑ 𝛼3𝑘∆𝑙𝑛𝑅𝑎𝑖𝑛𝑡−𝑗 + 𝑟 𝑖=0 ∑ 𝛼4𝑘∆𝑙𝑛𝑇𝑒𝑚𝑝𝑡−𝑗 𝑟 𝑖=0 + ∑ 𝛼5𝑘∆𝑙𝑛𝐸𝐶𝑡−𝑗 + 𝑟 𝑖=0 ∑ 𝛼6𝑘∆𝑙𝑛𝐹𝐶𝑡−𝑗 + 𝑟 𝑖=0 ∑ 𝛼7𝑘∆𝑙𝑛𝐶𝐿𝑡−𝑗 𝑟 𝑖=0 +𝛽1𝑙𝑛𝐴𝐺𝑅𝐼𝑡−1 + 𝛽2𝑙𝑛𝑅𝑎𝑖𝑛𝑡−1 + 𝛽3𝑙𝑛𝑇𝑒𝑚𝑝𝑡−1 + 𝛽4𝑙𝑛𝐸𝐶𝑡−1 + 𝛽5𝑙𝑛𝐹𝐶𝑡−1 + 𝛽6𝑙𝑛𝐶𝐿𝑡−1 + 𝛽7𝐶𝑂2𝑡−1 + 𝜀𝑡 (3) where 𝛼0 stands for the intercept, r for the lag order, ∆ represents the first difference operator, 𝜀𝑡 for the error term. moreover, f-test has been applied in the study to the long-run equilibrium relation between lnagri, lnco2, lncl, lnfc, lnec, lntemp, lnrain. the null hypothesis (h0) is that the variables do not have any cointegration. h0: 𝜌1 = 𝜌2 = 𝜌3 = 𝜌4 = 𝜌5 = 𝜌6 = 𝜌7 and the alternative hypothesis (h1) states the reverse h1: 𝜌1 ≠ 𝜌2 ≠ 𝜌3 ≠ 𝜌4 ≠ 𝜌5 ≠ 𝜌6 ≠ 𝜌7 the estimated f test is compared with lower and upper bound values (m. h. pesaran et al., 2001). the h0 of the absence of cointegration among lnagri, lnco2, lnfc, lncl, lnec, lntemp, lnrain is rejected if the computed ftest exceeds the upper bound. the h0 of the absence of cointegration between lnagri, lnco2, lncl, lnfc, lnec, lntemp, lnrain cannot be rejected if the estimated f-test is lower than the upper bound. the h0 of the absence of cointegration becomes inconclusive if the estimated f-test lies between the lower and upper levels of the ranges, which can be verified using either the johansen cointegration technique or the cusum (cumulative sum recursive residuals) and cusumsq (cumulative of square recursive residuals) to confirm cointegration consistency. the second step of ardl estimation involves assessing the short-run relationship between agriculture production, temperature, co2 emissions, rainfall, fertilizers consumption, cereal cropland area, and energy consumption in vietnam. in the ardl formulation, the ecm can be stated as ∆𝑙𝑛𝐴𝐺𝑅𝐼𝑡 = 𝛼0 + ∑ 𝛼1𝑘∆𝑙𝑛𝐴𝐺𝑅𝐼𝑡−𝑗 + 𝑟 𝑖=1 ∑ 𝛼2𝑘∆𝑙𝑛𝐶𝑂2𝑡−𝑗 + 𝑟 𝑖=0 ∑ 𝛼3𝑘∆𝑙𝑛𝑅𝑎𝑖𝑛𝑡−𝑗 + 𝑟 𝑖=0 ∑ 𝛼4𝑘∆𝑙𝑛𝑇𝑒𝑚𝑝𝑡−𝑗 𝑟 𝑖=0 + ∑ 𝛼5𝑘∆𝑙𝑛𝐸𝐶𝑡−𝑗 + 𝑟 𝑖=0 ∑ 𝛼6𝑘∆𝑙𝑛𝐹𝐶𝑡−𝑗 + 𝑟 𝑖=0 ∑ 𝛼7𝑘∆𝑙𝑛𝐶𝐿𝑡−𝑗 𝑟 𝑖=0 + 𝛼𝐸𝐶𝑀𝑡−1 + 𝜀𝑡 (4) 5. empirical estimation and discussion time series data are used in this empirical analysis to quantify the impact of climate change on agriculture in vietnam. table 2 contains the descriptive statistics for the variables included in the analysis. according to jarquebera statistics, all variables have a normal distribution with zero covariance and a constant variance. table 2. descriptive statistics variables lnagri lnco2 lnec lnfc lncl lnrain lntemp mean 3.17281 -0.31140 6.01360 5.639958 15.89584 7.523563 3.201465 median 3.141347 -0.28724 5.977751 5.791568 15.93597 7.524909 3.202136 max 3.701034 0.529926 6.50683 6.181791 16.02093 7.610878 3.230409 min 2.888347 -1.33297 5.563719 4.653397 15.6834 7.436034 3.17847 standard deviation. 0.233103 0.63908 0.334679 0.400249 0.094652 0.061445 0.011266 skewness 0.74198 -0.17200 0.164992 -1.09593 -0.81123 -0.08497 0.077957 kurtosis 2.751208 1.714527 1.611901 3.243245 2.4943 1.572907 3.753149 jarque-bera 2.264034 1.770789 2.035708 4.86343 2.888159 2.065476 0.591543 probability 0.322382 0.412551 0.36137 0.087886 0.235963 0.356031 0.743957 sum 76.14743 -7.47374 144.3266 135.359 381.5002 180.5655 76.83517 sum sq. dev. 1.249752 9.393743 2.57623 3.684583 0.206057 0.086836 0.002919 observations 31 31 31 31 31 31 31 table 3 shows the correlation matrix in the same way. according to correlation analysis, fertilizer consumption, land under cereal production, energy consumption, co2 emission, rainfall, and temperatu are all negatively correlated with agriculture production. the correlation analysis also shows a negative correlation between average temperature and rainfall. agbioforum, 24(1), 2022 | 7 huong, nguyet, hung, duc, chuong, tri and hien — economic impact of climate change on agriculture a case of vietnam table 3: correlation matrix lnagri lnfc lncl lnec lnrain lntemp lnco2 lnagri 1.000 lnfc -0.892 1.00 lncl -0.934 0.929 1.00 lnec -0.967 0.887 0.955 1.00 lnrain -0.048 -0.033 0.054 0.050 1.00 lntemp -0.180 0.178 0.075 0.080 -0.220 1.00 lnco2 -0.982 0.902 0.959 0.991 0.062 0.141 1.00 after descriptive and correlation analysis, the adf test is used to evaluate the stationarity of the series. the pp unit root test has also been applied to verify the results of the adf test. table 4 below shows us the results of both unit root tests. agriculture production (lnagri), co2 emission (lnco2), fertilizer consumption (lnfc), and energy consumption (lnec) are found to contain unit root at level i (1), both with intercept and intercept and trend, but land area under cereal production (lncl), average temperature (lntemp) and rainfall (lnrain) are found to stationary i(0) at the level both with intercept and intercept and trend. as a result, the ardl technique of cointegration should be used to examine the effect of climate change on agriculture in vietnam from 1990 to 2020. table 4. unit root testing variables adf test (level) intercept intercept & trend pp test (level) intercept intercept & trend lnagri -1.8499 -2.470 -2.931 -2.367 lnco2 -0.6470 -1.905 -1.378 -1.831 lnfc -6.638 -3.112 -4.7409 3.1277 lnec -0.1076 -2.116 0.0709 -2.568 lncl -3.503*** -1.433*** -3.9014*** -1.295** lnrain -4.845*** -4.715*** -7.4001*** -7.151*** lntemp -4.384*** -5.030*** -4.316*** -5.020*** first difference intercept intercept & trend first difference intercept intercept & trend lnagri -4.769*** -5.237*** -4.769*** -5.207*** lnco2 -5.1223*** -5.233*** -5.354*** -6.6388*** lnfc -7.382*** -8.3139*** -7.916*** -10.255*** lnec -3.997*** -3.7214** -3.968*** -3.609*** lncl --------------------------------------- lnrain --------------------------------------- lntemp ---------------------------------------- where, **,*** shows 5 and 1 percent significance level. adf= augumented dickey fuller and pp=philips-perron the study examines the long-term association between climate change and other variables using the ardl technique. as a result, the initial step is to determine the appropriate lag length. the results of numerous selection criteria are summarised in table 5, and the optimal lag length is determined using the sic. table 6 summarises the results of the ardl bounds testing approach. the results indicate that when agriculture production, co2 emissions, fertiliser consumption, energy consumption, land area under cereal production, rainfall, and average temperature are used as dependent variables, the computed f-stat exceeds the upper critical bound. as a result, the ardl bounds test for cointegration reveals that all variables examined have a long-run relationship. table 5: results of optimal lag order selection lag logl lr fpe aic sc hq 0 60.67805 3.65e-08 − 3.392501 − 3.846271 − 1.156981 1 162.0746* 178.3118* 9.33e-11* − 5.243706 − 3.954683* − 5.720845* 2 178.4786 23.42559 1.35e-08 − 5.102569 − 5.697989 − 4.839718 3 218.4225 25.48107 2.21e-08 − 6.790689 − 1.074171 − 5.647345 4 225.3254 24.68841 2.66e-08 − 5.767629 − 1.324641 − 4.838596 *represents optimal lag order. lr, sequential modified lr test statistic, fpe= final prediction error, aic=akaike information criterion, sic schwarz information criterion, hq = hannan–quinan information criterion. table 6: findings of ardl-bound testing approach variables lnagri lnco2 lnfc lnec lncl lnrain lntemp f-stat 6.896*** 5.906*** 4.7699*** 3.986*** 4.361*** 5.091*** 4.591*** structure of optimal lag (1,1,1,0,0,1,1,) (1,1,0,0,0,1,1) (1,1,0,0,0,0,0) (1,0,0,0,1,1,1) (1,1,0,0,0,1,1) (1,1,0,0,0,1,1,1) (1,0,0,0,0,0,0,) agbioforum, 24(1), 2022 | 8 huong, nguyet, hung, duc, chuong, tri and hien — economic impact of climate change on agriculture a case of vietnam lower bounds i(0) 2.27 (5%) upper bounds i(i) 3.28 (5%) diagnostic test r2 0.578 0.734 0.999 0.481 0.98 0.557 0.635 adjusted.r2 0.841 0.749 0.998 0.487 0.97 0.559 0.671 f2-stat 6.592** 8.905** 17.07*** 8.264*** 9.29** 1.63*** 7.983 in ardl analysis, table 7 shows the long-run effects of climate and non-climate variables on agricultural output. among climatic variables, co2 emissions are associated with increased agricultural production in vietnam. agriculture output increases by 0.1 percent for every percent increase in co2 emissions in the long run. (chandio, jiang, & rehman, 2020), (xiang et al., 2021) found similar results for co2 emission on various crop productions and argued that increased co2 emission aids in crop photosynthesis enhancement. according to the long-run coefficients, rainfall and average temperature negatively affect agriculture. agriculture production is reduced by 0.5 and 1.2 percent due to a one percent increase in rainfall and moderate temperature. these findings corroborate (korres, norsworthy, burgos, & oosterhuis, 2017) and (chandio, jiang, & rehman, 2020) findings regarding the adverse effect of temperature on rice and agricultural production. according to ali et al. (2017), the highest temperature is having a detrimental impact on wheat productivity. (rotich & mulungu, 2017), (mosammam, mosammam, sarrafi, nia, & esmaeilzadeh, 2015), (chandio, jiang, & rehman, 2020), and (kakumanu, kotapati, nagothu, kuppanan, & kallam, 2018) all reported that excessive rainfall was detrimental to crop production and strongly support our findings. additionally, among non-climatic variables, there is a significant and positive relationship between cereal cropland area and agricultural productivity. thus, increasing the size planted to cereal crops will be critical for long-term agricultural production growth. the findings indicate that a 1% increase in cereal cropland area results in a 1.16 percent increase in agricultural production. this paper's conclusion is comparable to those of (chandio, jiang, & rehman, 2020), (warsame et al., 2021) and (nasrullah et al., 2021). similarly, it has been discovered that fertilisers are critical in mitigating any long-term negative impact on agricultural production. in the long run, each per cent increase in fertiliser consumption increases agriculture production by 0.3 percent. thus, proper fertiliser application can help improve the health and fertility of the soil. additionally, (rehman, chandio, hussain, & jingdong, 2019),chandio, magsi, and ozturk (2020)), and (nasrullah et al., 2021) discovered that fertiliser consumption benefits agricultural production. finally, energy consumption has a long-term beneficial effect on agricultural production, as demonstrated by (chandio, magsi, et al., 2020) and (chandio, jiang, & rehman, 2020).more precisely, agriculture production in vietnam increases by 0.2% for every unit increase in energy consumption. table 7. short run and long run ardl estimations dependent variable: lnagri, ardl model (1,1,1,0,0,1,1) explanatory variables long run short run lnco2 0.107*** (0.047) 0.799*** (0.045) lnec 0.292*** (0.010) 1.322 (0.139) lnrain -0.055*** (0.058) -0.034** (0.084) lntemp -1.298** (0.064) -0.812** (0.036) lnfc 0.398** (0.086) 0.023** (0.079) lncl 1.163** (0.063) 1.949*** (0.019) cons -6.84 (0.741) -0.369*** ecm (-1) diagnostic tests dw-stat = 2.55 f-stat = 5.326*** r2 = 0.874 𝜒2 serial 1.2579 (0.283) 𝜒2 𝑁𝑜𝑟𝑚𝑎𝑙 1.548 𝜒2𝐴𝑅𝐶𝐻 0.4169 𝜒2𝑊ℎ𝑖𝑡𝑒 1.0521 𝜒2𝑅𝐸𝑆𝐸𝑇 1.352 (0.055) cusum stable agbioforum, 24(1), 2022 | 9 huong, nguyet, hung, duc, chuong, tri and hien — economic impact of climate change on agriculture a case of vietnam cusum square stable where, *** and ** show 1 and 5 percent level of significance respectively and p-values are given in parantheses additionally, table 6 contains the short-run results of the ardl estimation. the findings indicate that climatic explanatory variables have the same effect on agricultural output in the short run as in the long run. similarly, to the long run, it is discovered that rainfall and average temperature have a detrimental effect on agricultural production. however, the magnitude of these factors' coefficients is smaller than in the long run. agriculture production is reduced by 0.034 and 0.8 percent in the short run when rainfall and temperature both increase by one percent. co2 emissions positively affect agricultural production, similar to what has been discovered in the long run. a 1% increase in co2 emissions results in a 0.79 % increase in agricultural output. similarly, among non-climatic factors, the short-run findings indicated that cereal crop area has a sizable impact and can boost agricultural production in vietnam. a 1% increase in land area under cereal crop production results in a 0.07 percent increase in agriculture production. similar to long-run estimates, fertiliser use has a significant positive effect on agricultural output, as it results in a 0.02 percent increase in agricultural production for every percent increase in fertiliser consumption in the short run. in contrast to the long run, energy consumption has no discernible (though beneficial) effect on agricultural production, similar to the finding of (chandio, jiang, & rehman, 2020). the ecm coefficient is significantly negative, indicating that the variables are cointegrated. ecm illustrates the rate at which long-run equilibrium adjusts following short-run shocks. the coefficient of ecm is 0.36, with a 1% level of significance, indicating that divergence from the short-run balance between agriculture production and variables is adjusted and can be regained in the long run at a rate of 0.36 per cent per year, as indicated in table 7. the ardl model passes several diagnostic tests. including 𝜒2 𝑁𝑜𝑟𝑚𝑎𝑙 , 𝜒2 serial, 𝜒2𝐴𝑅𝐶𝐻, 𝜒2𝑊ℎ𝑖𝑡𝑒 𝑎𝑛𝑑 𝜒2𝑅𝐸𝑆𝐸𝑇. furthermore, the study also uses johansen and juselius cointegration approach to check the robustness of the present long-run relationship between variables. table 8 below provides evidence for the robustness of the long-run cointegration among the variables in the johansen juselius test. table 8. johansen juselius cointegration results hypothesis test statistics c v 5% prob -value trace stat r≤0 305.721*** 125.615 0.000 r≤1 187.719*** 95.753 0.000 r≤2 105.740*** 69.8189 0.000 r≤3 66.464*** 47.856 0.004 r≤4 38.941*** 29.797 0.0034 r≤5 15.760*** 15.494 0.0456 r≤6 3.2113** 3.8414 0.0731 maximum eigenvalue r≤0 118.302*** 46.231 0.000 r≤1 81.678*** 40.077 0.000 r≤2 39.276*** 33.876 0.0103 r≤3 27.523** 27.584 0.0509 r≤4 23.180*** 21.131 0.0254 r≤5 12.549** 14.264 0.0917 r≤6 3.2113** 3.8414 0.0731 agbioforum, 24(1), 2022 | 10 huong, nguyet, hung, duc, chuong, tri and hien — economic impact of climate change on agriculture a case of vietnam -12 -8 -4 0 4 8 12 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 cusum 5% significance figure 2. cusum plot for the stability of coefficients of ardl model (1990–2020). last, the study used (cusum) and (cusumsq) tests developed by (brown, durbin, & evans, 1975) to check stability in the short-run and long-run coefficients as the structural changes in variables may exist due to multiple or single structure break. the cusum and cusumsq agricultural production lines shown in figure 2 and figure 3 fall under critical boundaries at 5 %, supporting the ardl model's stability and fitness. -0.4 0.0 0.4 0.8 1.2 1.6 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 cusum of squares 5% significance figure 3. cusumsq plot for stability of coefficients of ardl model (1990–2020). 6. conclusion and policy recommendations climate change is expected to have a detrimental effect on agricultural output and rural incomes in an economy. as a result, comprehensive empirical research on the impacts of climate change on agriculture is required to develop policies to prevent and mitigate harmful climatic shocks. thus, the current study examines the effect of climate change on agriculture productivity in vietnam using annual time series data from 1990 to 2020. to determine the presence of a long-term relationship between climate change components such as co2 emissions, average temperature, precipitation, energy consumption, and nonclimatic factors such as land area under cereal crop production and fertilizer consumption with agriculture production, the ardl bounds technique for cointegration was used. the findings indicate a long-term relationship between climate change and agriculture production in pakistan. co2 emissions and energy consumption positively affect agriculture production, whereas average temperature and precipitation harm agriculture production in the short and long run. similarly, in both runs, nonclimatic variables such as the area under crop production and fertilizer consumption positively affect agriculture production. additionally, the johansen and juselius cointegration method and the cusum and cusumsq tests were used to estimate the validity of the variables' long-run cointegration and coefficients' stability. based on empirical findings, the study recommends that the vietnamese government consider establishing and implementing adaptation programmes to mitigate the negative effects of climate change. the government should adopt a consistent agriculture policy that allows development partners, farmers, non-governmental organisations (ngos), experts, and the civil, private, and public sectors to participate fully in the planning and implementation of strategies to address agriculture's already-devastated state as a result of climate change. intervention and adaptation policies must be designed to increase water availability and management, as the most significant aspect of climate change affecting agriculture is erratic rain patterns. additionally, the government should invest in weather forecasting technologies and drought monitoring systems to enable policymakers to develop and implement mitigation strategies that will mitigate the severity of extreme weather events, particularly droughts and floods. additionally, to create sustainable and resilient agriculture in vietnam, new crop varieties withstanding extreme temperatures and shortage must be developed, new farming techniques introduced, and institutional research 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to product information before purchase. in indonesia, the chili market is becoming increasingly competitive since buyers are worried about the product's quality. this study aims to determine the factors that become customer preferences in chili purchase decisions and the attributes that consumers in bali province consider most while purchasing chili. the procedure for determining the sample consists of a convenience sample of 30 respondents. the data indicate that the cayenne pepper with the highest level of spiciness, bright red color, and smooth, shiny skin surface was the most popular. spiciness (15.34), color (13.32), and skin surface are the three characteristics that people value most when purchasing chili peppers (12.69). this research contributes substantially to the connection between customer preference and chili purchasing. key words: consumer preferences, purchasing decision, cayenne pepper. 1. introduction chili is a sort of spice that is commonly grown worldwide, especially in indonesia, for either domestic or commercial usage. growing chili peppers may be a lucrative business for both farmers and retailers, allowing the former to earn a living and the latter to increase their consumer base. in addition, chile is used as a main ingredient in the processed food and pharmaceutical industries, and its exportation generates substantial revenues. the extensive usage of cayenne pepper in cooking is due to the population's preference for spicy meals. in 2017, the food and agriculture organization (fao) issued information detailing the nations with the highest chili production. china's production of over 10 million tons is in the top place. indonesia ranks fourth with a total output of 1.8 million tons worth $812 thousand. production indonesia's cayenne pepper production will reach 1.39 million tons in 2021. compared to 2020, when 1.5 million tons were produced, the central statistics agency (referred to as bps) reported a drop of 8.89%. in 2021, the production of cayenne pepper will fall for the first time in the previous five years. this figure will continue to increase through 2020. in july 2021, 134,4 thousand tons of cayenne pepper will be produced. february was the lowest month, with a total of 94,54 thousand tons. as demonstrated in table 1, bali province is one of the indonesian provinces that is optimizing its cayenne pepper crop. the government, in this case, the food agriculture service, is boosting the addition of farmer groups to the province's cayenne pepper cultivation due to the province's strong expansion potential in cayenne pepper output (gosardi et al., 2022). based on table 1, buleleng regency produced the most chile in the province of bali in 2020, with 16,581 tons, while jembrana regency produced the least, with 124 tons. typically, when creating agricultural policy in indonesia, chile cultivation is favored. the fundamental purpose of domestic chili production is to develop market-appropriate products. however, the development of chili products in indonesia remains hindered, as do consumers' evolving preferences and willingness to spend more for high-quality items . product enhancement and development generate product value. this is the key to corporate sustainability. table 1: production of seasonal cayenne pepper in the province of bali 2021 county/city cayenne pepper production in bali province by regency/city (tons) 2018 2019 2020 jembrana regency 58 86 124 tabanan regency 2405 901 1175 badung regency 2089 1956 1504 gianyar regency 6169 1864 4919 klungkung regency 1161 2324 1725 bangli regency 16103 10545 8552 karangasem regency 12118 6074 8792 buleleng regency 5036 15088 16581 denpasar city 16 6 9 bali province 45155 38844 43380 source: bali central statistics agency (2021) nevertheless, the product development process demands data for determining client requirements. if the product does not satisfy the client's specifications, much money is lost during the product development. therefore, new product development is necessary to determine the product's most desirable characteristics. mailto:itamba17@unmas.ac.id mailto:wywid@unmas.ac.id agbioforum, 24(2), 2022 | 74 tamba and widnyana. — consumer preferences on the purchase of cayenne pepper… this study will evaluate the factors that influence purchasing decisions for chili products. commonly, a marketing technique is utilized to examine and answer questions (kessels et al., 2008); accordingly, conjoint analysis is presented since it is effective for everyday market surveys and product creation. alriksson and oberg (2008) report that the recent application of conjoint analysis to agricultural products has resulted in product adjustments that better match consumer needs. regarding the purchase of cayenne pepper, the results will provide important information regarding the significance of product qualities like flavor, price, size, packaging, herbal compounds, and organic chilies. customers' tastes for sambal, which are rarely studied, are better understood as a result of this study. in addition, this research aids chili companies know what cayenne pepper buyers seek. in addition to gaining a competitive advantage and reducing product development costs, the company can design goods that fulfill client requirements. 2. literature review there is evidence that conjoint analysis (hereafter ca) plays a crucial role in analyzing individuals' product preferences. this strategy has been utilized in marketing research for four decades (green & srinivasan, 1978). numerous uses of ca include creating new products, upgrading existing products, pricing, promotion, distribution routes, and market segmentation (alriksson & oberg, 2008). lancaster's notion of characteristic demand provides the foundation for ca's core premise. the ca approach refers to the utility or consumer satisfaction created by each distinct instead of the satisfaction derived from utilizing the product (submitter et al., 2020). alriksson & oberg (2008) and de pelsmaeker et al. (2013) say that consumer decisions depend on product qualities; consequently, examining physical product characteristics is the key to making decisions. the theory of attributes generates purchasing patterns. previously, (green & srinivasan, 1978, 1990) suggested that buyers prefer to buy products based on product features rather than product advantages. in addition, lancaster (1966) contends that product features can affect consumer preference. in his description of the attribute model, he demonstrates how product qualities influence purchasing decisions , including the physical aspects of the product. in addition, lancaster (1966) distinguishes between clients' relevant and irrelevant aspects of the product purchase process. relevant qualities are product attributes that can impact a customer's purchasing choice. similarly, if product characteristics change, so will decision-making. appropriate qualities suggest that product attributes do not affect customers' purchase decisions. changes to the product's features will not impact decision-making (deliza et al., 2010). the purpose of the ca study is to determine the relative significance of the product features described by the study. each attribute has at least two selection levels. the most significant characteristic of ca is that the product is competitively priced, and customers must be able to differentiate between items (alriksson & oberg, 2008). ca will consequently compile a list of consumer preferences at each attribute level based on the responses of each respondent (gustafsson et al., 1999). furthermore, most consumer preference research has been conducted in industrialized nations like the united states (schiessl et al., 2022; sun et al., 2022; yaqub et al., 2022). there aren't many studies with an asia pacific concentration. any attempt to generalize these findings would therefore be fruitless, as different environmental conditions may have varying effects on consumer desire, depending on the circumstances (khatri et al., 2022; kutaula et al., 2022). location and atmosphere were the least important factors in determining whether a customer would return to a catering restaurant, while service quality was the most important (han, 2021; lópez-sanz et al., 2021; taghikhah et al., 2021). in contrast, when choosing a food service establishment, the cost was one of the most relevant aspects. in addition, research revealed that customers were more price-conscious when dining with their families than during work lunches. to attract clients, restaurants must provide reasonably-priced foods in a welcoming atmosphere (di crosta et al., 2021; jang & hsieh, 2021; trimurti & utama, 2021; widayat et al., 2021). past research has shown that a restaurant's ambience and decor influence its customers' decisions. the concept and design of the place were of the utmost significance, with the food coming in last. according to a previous study, descriptive names improve sales and raise customer expectations for the dish and catering company (cohen, 2022; fathoni et al., 2022; khatri et al., 2022; mariani et al., 2022). a connection between product brand and service business brand. studies have inconsistently assessed the significance of restaurant attributes, which typically include price, tangible items, and marketing, as well as customer experience and quality (jeong & chung, 2022; kutaula et al., 2022). these facts demonstrate the need for the proposed study, which will assess the importance of the qualities. in the psychological literature, preferences are a person's attitude toward a collection of things, often represented through an intentional judging mechanism. in contrast, the most specific psychological meaning of "preference" could be evaluative judgment in the sense of liking or hating an object (di crosta et al., 2021; trimurti & utama, 2021; widayat et al., 2021). however, this does not imply that a flavor will never change. even subconsciously, decision-making mechanisms such as options can drastically modify desire (aw et al., 2021; jain et al., 2021; jang & hsieh, 2021; yalley, 2021). acceptability shows a willingness to accept the established order or these less popular alternatives, but ordinary consumers tend to choose between equally or more valued options. the name of a food can provide an indicator of its flavor (lópez-sánchez et al., 2021; mukherjee & chatterjee, 2021; eri & eri, 2021). similar to the studies agbioforum, 24(2), 2022 | 75 tamba and widnyana. — consumer preferences on the purchase of cayenne pepper… that demonstrate they affect food sales, customer satisfaction, and inclination to return, positively descriptive menu names can enhance sensory judgments of appearance and taste (han, 2021; peterson et al., 2021; sari et al., 2021; shankar & jain, 2021). according to a previous study, descriptive names improve sales and build client expectations for the restaurant's cuisine and atmosphere. in the case of hotels and foodservice companies, there is a strong association between brand success and corporate performance. various scholars have identified price as a customer expectation (hoe & mansori, 2018; imran et al., 2019; rita et al., 2019). the purpose of offering limitedtime promotions such as new product releases was to increase sales and repeat visitors. it is a known fact that claimed pricing fairness influences customer happiness and loyalty. however, customer loyalty and satisfaction are essential prerequisites for price acceptability. price has been found to correlate with consumer satisfaction. in reality, price harms consumer satisfaction. numerous studies have highlighted the importance of physical qualities for food companies (hao, 2011; hoe & mansori, 2018; islam et al., 2021; salamat et al., 2013; yaqub et al., 2022). the design of a catering establishment may attract greater attention because it contributes to its distinctive atmosphere. however, service quality may be affected by the location. richness is essential in the grocery sector since it influences the quality of the customer experience (hoe & mansori, 2018; imran et al., 2019; murad et al., 2022; rita et al., 2019). political and commercial interests are among restaurant and hotel patrons' top ten complaints lodged. according to various research, there is a positive correlation between client choice qualities and economic performance. there are financial and non-financial corporate strategy indices. revenue growth refers to the economic effects of a company's policies and actions, such as the rate of return, assets ratio, absolute value, competitiveness, sales, and income. regrettably, by the late 1970s, it had become increasingly apparent that conventional corporate finance approaches could not sustain enterprises in modern markets. many researchers concurred that while traditional methods reveal the performance that results from an organization's assets, they reveal little about how that performance is produced or how it may be improved. non-financial corporate governance begins to emerge due to the inability of profitability ratios to effectively manage enterprises operating in an expanding economy (herbas torrico & frank, 2019; lakmali & kajendra, 2021; menon, 2018). delighted customers will return to the business to acquire additional products and services, bolstering the company's bottom line. in addition, there is a strong correlation between total sales, the allowance for service levels, the perception of overall quality, and the happiness of customers' opinions. the apparent advantage of customer happiness is improved market domination, the ability to attract repeat business, and the ability to drive business expansion, all of which raise income. despite external pressure and marketing initiatives, loyalty is defined as the desire to acquire a preferred good or service in the future repeatedly (ahn & kwon, 2022; gulfraz et al., 2022; liu et al., 2022; shamim & islam, 2022). in addition, a loyalty concept considers purchase frequency and average order cost. 3. research methods the study investigates the factors that form consumer preferences in chili purchase decisions and the attributes consumers in bali province consider most when purchasing chili. consumers will prefer and buy things that meet their specifications. the concept of the product attribute approach is derived from the study of consumer behavior by articulating the preferred quality attributes of the product. in the concept of product attributes, buyers evaluate a product as a collection of distinct characteristics. understanding customer preferences is crucial for the decision-making process of key stakeholders, including producers/farmers and other parties involved in the vegetable subsector. this study applies quantitative descriptive analysis to summarize and clarify red chilli pepper purchasers' features and decision-making processes. red cayenne pepper customer preferences are rated as follows on a likert scale: extremely important = 5, important = 4, medium = 3, not important = 2, and very insignificant = 1. a) multi analysis attribute fishbein in principle, fishbein's attitude model will calculate ao (attitude toward the object), namely a person's attitude towards an object that is recognized through the attributes attached to the object. by identifying an object through seeing, feeling, trying and using the object for a long time, a consumer will have a certain attitude towards the object he uses or uses. usually, before consumers consume an object, they expect the object. so that after seeing, trying and using it, the consumer can judge whether the object in question is following his expectations. fishbein multiattribute analysis with the following formula: ao = ∑ (bi x ei) information: ao = attitude towards the chili product bi = consumer confidence in attribute i of the cayenne pepper product before he buys or uses it ei = consumer evaluation of attribute i of red chili products in general to determine the evaluation of attribute (ei) is done by multiplying the score of each attribute by the frequency of consumers' answers to the cayenne pepper attribute. b) chi square analysis (χ2) to determine whether there are differences in consumer preferences for red chili peppers, chi-square analysis is used with the following formula: agbioforum, 24(2), 2022 | 76 tamba and widnyana. — consumer preferences on the purchase of cayenne pepper… 𝑋2 =∑[ (𝑓𝑜 − 𝑓𝑒)2 𝑓𝑒 ] information: x2 = chi-square fo = the number of consumers who choose the category in the attribute of red cayenne pepper fe = the number of consumers expected in the red chili attribute category i... k = attribute category in the red chili attribute 4. research findings figure 1: consumer description it is evident from figure 1 that the majority of cayenne pepper purchasers are female, with 29 females compared to a single male. this suggests that women in the home are primarily responsible for meeting household demands in terms of household expenses. this is because women are generally accountable for household care, which includes limiting household consumption. men occasionally partake in shopping activities, but buying for consumption and domestic necessities is primarily the domain of women. there are ten consumers between the ages of 20 and 29. this age range (15-64) is a productive age; at this age, consumers still have the desire and ability to work, which affects the household income received and used to satisfy demands. in addition, this age group is considered mature. therefore, they tend to purchase cayenne pepper with a more sensible mindset. the bulk of cayenne pepper purchasers is twenty housewives. due to their daily usage of cayenne pepper in cooking and administration of home finances, housewives are the ones who make decisions regarding the purchase of the spice. 4.1 purchase frequency some users have a set plan (daily or monthly) for obtaining cayenne pepper, while others make purchases on an irregular basis. the frequency with which people purchase cayenne pepper is shown in table 2. table 2: frequency of purchase of cayenne pepper table 2 indicates that the frequency with which consumers purchase cayenne pepper varies, with the majority, 36.67 percent, purchasing once per week. this is influenced by consumers' propensity to buy on certain days and maintain a one-week supply of cayenne pepper. 5. attribute analysis attributes analyzed in this study include color, level of spiciness and skin surface. 1) consumer preferences towards the purchase of cayenne pepper consumer preferences for cayenne pepper are a person's choice of likes or dislikes of the cayenne pepper products that are consumed. these choices vary from one consumer to another. consumer preferences for cayenne pepper in bali province can be analyzed using chi-square analysis. the results of the chi-square analysis are presented in the following table 3. table 3: results of chi-square analysis of consumer preferences on cayenne pepper cayenne pepper attributes χ2 statistic asymp. si color 22.53a 0.000 spicy level 9.80b 0.007 skin surface 32,671 0.000 a. significant at the level of significance α = 1% b. significant at the level of significance α = 5% based on table 2, it can be shown that all of the attributes observed in this study were statistically different, with significance levels of = 1% for skin color and surface and = 5% for spice level. this indicates that consumer preferences for cayenne pepper vary in the bali province market. consumer preferences for cayenne pepper in the bali province market can be determined by examining the category or attribute criteria that consumers select the most, as shown in the table 4 below. table 4: consumer preferences for cayenne pepper in the bali province market cayenne pepper attributes consumer preference color bright red spicy level very spicy skin surface shiny table 4 indicates that consumers in bali prefer vivid red cayenne pepper. bright red cayenne pepper is desirable because it signifies the pepper is fresh and ripe. the favored level of cayenne pepper spiciness among consumers in the bali province market is very spicy. cayenne pepper from the province of kalimantan often 1 29 10 8 6 6 2 20 1 2 4 10 5 10 15 20 25 30 35 gender age profession frequency amount percentage daily 9 30.00 weekly 11 36.67 uncertain 10 33.33 total 30 100.00 agbioforum, 24(2), 2022 | 77 tamba and widnyana. — consumer preferences on the purchase of cayenne pepper… possesses a high spiciness. the rationale offered by the consumer is that less cayenne pepper is required to get the desired amount of spiciness. consumers prefer glossyappearing cayenne pepper skin in the province of bali. 2) confidence and evaluation of the attributes of cayenne pepper consumer attitudes define how customers feel about cayenne pepper regardless of whether or not they enjoy it. the consumer's belief in cayenne pepper's numerous properties and advantages is also reflected in their attitudes. knowledge of the benefits and attributes of cayenne pepper inspires consumer confidence. the level of spiciness is the attribute that customers believe in most firmly, or the level of spiciness of cayenne pepper purchased by consumers is regarded as the best level of cayenne pepper. consumers view the skin surface characteristic as the least desired characteristic. the confidence of consumers regarding the qualities of cayenne pepper is displayed in table 5. table 5: consumer confidence towards cayenne pepper attributes in the meantime, the attribute customers consider the most are the level of spiciness, or it can be argued that consumers regard the evaluation of the amount of spiciness to be the most significant factor in creating attitudes toward the purchase of cayenne pepper. the consumer evaluation (ei) of the characteristics of cayenne pepper is shown in table 6. table 6: consumer evaluation (ei) of cayenne pepper attributes the consumer attitude index (ao) reflects the consumer's evaluation of the cayenne pepper's qualities, including color, amount of spiciness, and skin surface. the greater the ao value, the greater the number of consumers who evaluate these features. spiciness (15.34), color (13.34), and skin surface are the most important characteristics when deciding whether to purchase cayenne pepper (12.69). table 7 displays the consumer attitude index (ao) analysis findings towards cayenne pepper. table 7: consumer attitudes towards cayenne pepper in the bali province market cayenne pepper is mainly used in cooking to impart a spicy flavor, so the level of spiciness is the most important characteristic that buyers evaluate when making purchasing decisions. additionally, customers take color into account while making purchasing selections. the cayenne pepper's vivid red hue shows that it is still fresh. the surface of the cayenne pepper's skin is the last factor people evaluate when making purchases. if the cayenne pepper has glossy skin, it is fresh. the purchase location of chili is related to the product's origin. both traditional markets and stalls sell chilies so that people can purchase them at either venue. there is now no modern market (minimarket) that sells these things. the following table lists sites where consumers can buy chili. table 8: where to purchase chili by consumers table 8 indicates that 93.33 % of respondents purchase chilies from traditional markets situated throughout the province of bali. at traditional markets, chilies are available in a wider variety of sorts and price points, providing consumers with more purchase alternatives. 6. discussions agricultural commodities production typically employs a monoculture cropping strategy. this farming strategy can boost crop yield while decreasing expenses and labor. on the other hand, the uniformity of cultivars facilitates the spread of plant-disrupting organisms. to counteract these shortcomings, polyculture cropping patterns can be implemented by growing multiple types in the same region. (tutupary et al., 2004 in (arianti et al., 2019)) numerous studies have demonstrated that cultivated varieties have varying pest resistance (tutupary et al., 2004 (arianti et al., 2019)). planting various plant species in the exact location might deter plant-damaging organisms. in this study, this planting concept will be used for chili growing. both monoculture and polyculture cropping systems (mix of types) yield products with distinct advantages and disadvantages, particularly in terms of shape, size, and regularity. the challenge at hand is deciding which variety of chili is preferred by clients. farmers can use this information to determine and select the type of chili cultivation. cayenne pepper is cultivated in numerous tropical, attribute value total value average 5 4 3 2 1 color 20 56 27 6 0 109 3.63 4 14 9 3 0 30 level of 35 60 18 4 0 117 3.90 spiciness 7 15 6 2 0 30 surface 10 60 24 6 2 102 3.40 skin 2 15 8 3 2 30 attribute value total value average 5 4 3 2 1 color 10 68 30 2 0 110 3.67 2 17 10 1 0 30 level of 25 72 21 0 0 118 3.93 spiciness 5 18 7 0 0 30 surface 10 84 12 6 0 112 3.73 skin 2 21 4 3 0 30 attribute confidence evaluation attitude rating (ei) (oo) color 3.63 3.67 13.32 ii spicy level 3.90 3.93 15.34 i skin surface 3.40 3.73 12.69 iii the place amount percentage traditional market 28 93.33 shop 1 3.33 traditional market and shop 1 3.33 total 30 100.00 agbioforum, 24(2), 2022 | 78 tamba and widnyana. — consumer preferences on the purchase of cayenne pepper… subtropical, and temperate locations worldwide, including indonesia (bosland et al., 2012; tong & bosland, 1999). the price of chili in indonesia changes significantly due to volatility in chili output and market availability. anthracnose disease, caused by colletotrichu sp., is one of the most severe and significant causes of 10 to 80% yield loss in chilies (asare-bediako et al., 2015; diao et al., 2017). the color attribute is one that buyers consider while making purchase decisions. this research is consistent with arianti et al. (2019) .'s findings that the attribute assessed is based on its ranking on the preference of red chili shape (which is straight), which ranks third after skin color (dark red), size (medium), skin surface (smooth), hardness (slightly complicated), and spiciness (spicy). according to adiyoga and nurmalinda (2012), the form characteristic ranks sixth after skin color, type, price, and surface. in addition to flavor and color, muzdalifah (2012) asserts that farmers should be encouraged to make the same product or a consistent shape to promote product competitiveness. price appears to have the most significant impact on the purchasing of a product, according to the study's findings. it is noteworthy to note that the price of a product is commonly seen as a sensitive aspect when purchasing items. according to the current findings, earlier research has demonstrated that a price that is too low can create issues about the product's quality (chouichom et al., 2013; khayru et al., 2021). as a result, customers choose moderate pricing when selecting to purchase products. this result supports the conclusion reached by kramchote et al. (2008), namely that enterprises should set reasonable prices. these findings bolster xian-hui et al. (2017) .'s conclusion that buyers are prepared to pay extra for a superior product. thus, it may be concluded that the price of a product does not appear to influence the purchase of goods by customers, so long as they receive a product of sufficient quality. regarding the product's flavor, most respondents prefer hot and sweet chilies. the explanation is that most participants preferred spicy flavors with a hint of sweetness. this finding is also consistent with the findings of burgess (2014) and jeasakul & suwonsichon (2013), who discovered that flavor influences purchasing decisions. nonetheless, the findings of the present study contradict prior research by burgess (2014), which reveals that those unfamiliar with spicy food tend to favor a mild chili sauce and a combination of garlic, sugar, and lime. this study supports jeasakul and suwonsichon's (2013) assertion that consumers favor medium-spicy, sweet, and sour flavors. this conclusion can be explained by the fact that customers may not enjoy the pure spiciness of chili, preferring chilies with a subtle blend of sweet and sour qualities. the chili used to make chili sauce falls within the range of these three characteristics. previous research has demonstrated consumers' willingness to pay for organic items (garcia-yi, 2015; harrison et al., 2002; toiba et al., 2012). it is possible to imply that customers are aware of the potentially hazardous chemicals that may be applied to plants. consequently, people are willing to pay a premium for organic goods. the data could help producers better comprehend consumer preferences. most consumer preferences are determined by the product qualities offered to them. most bali customers are price-conscious and frequently associate product price with product quality. because the price is tied to quality, things of high quality must be reasonably priced (kiran et al., 2012). therefore, if a product is inexpensive, people will doubt its quality. therefore, a fair pricing system is crucial for products supplied in the bali province. this demonstrates that people enjoy the sauce's qualities, such as cleanliness and flavor. flavor is of secondary importance, as consumers tend to prefer a hot degree. 7. implications 7.1 theoretical implications 8. the importance of this study's theoretical ramifications stems from its added current information and conclusions on consumer preference to the existing body of literature. earlier research on consumer behavior was not examined from the perspective of product characteristics. this study contributes to the literature by demonstrating that while purchasing chili, consumers in indonesia are more concerned with the product's color and characteristics. in addition, the findings of this study contribute to the literature by suggesting that marketers should focus on the product's features, while this notion was mainly ignored in past studies. in addition, the literature on consumer preference would not be complete without the contribution of this study, which emphasizes the crucial importance of product performance and aesthetics in attracting consumers. in this regard, this contribution to the corpus of knowledge would boost the comprehension of future studies about decision-making to advance consumer behavior in chili product purchases. this study's substantial literature deserves adequate understanding because it discusses in depth the nature and perception of chili product consumers. 8.1 practical implications the study examines the features that form consumer preferences in chili purchasing decisions and the attributes that consumers in bali province evaluate most when making chili purchasing decisions. before this, numerous research had solely examined consumer preferences regarding purchase decisions, but chili had received little attention. consequently, this research will provide additional insight into consumer preferences on purchasing decisions and the features that customers evaluate most when purchasing chili. in addition, marketers can enhance the product's qualities with efficient marketing campaigns and give consumers all relevant information for better comprehension. in this sense, the objective of this study would be met if various chili-selling businesses embraced the implications with a proper agbioforum, 24(2), 2022 | 79 tamba and widnyana. — consumer preferences on the purchase of cayenne pepper… understanding of their customers. similarly, the findings of this study can be expanded, and greater emphasis could be placed on enhancing the performance of products while highlighting their characteristics following consumer preferences. therefore, this study strengthens the role of marketers in enhancing corporate performance through effective product management, and the display of product attributes according to client preferences. 9. conclusions the study aimed to identify the characteristics that influence consumers' chili purchasing decisions. it was also designed to determine which characteristics people in bali province value most while purchasing chile. utilizing a quantitative research methodology, likert-scale questionnaires were used to collect data on the effects of understanding the characteristics and decision-making processes of consumers who purchase red chili peppers. the survey showed that consumers in bali prefer cayenne peppers with a high spicy flavor, a vivid red color, and a smooth, shiny skin surface. spiciness (15.34), color (13.32), and skin surface are the three characteristics that people value most when purchasing chili peppers (12.69). 10. limitations and future direction indeed, this study has covered the significant elements of indonesian consumers' product-purchasing preferences. this study investigates the aspects of consumer preferences in chili purchase decisions and the attributes that consumers in bali province consider most while purchasing chili. consumers in the province of bali want cayenne peppers with a strong spicy flavor, a bright red color, and smooth, glossy skin. consequently, future authors must emphasize additional factors that influence chili purchase preferences. similarly, this study's sample size is relatively small; 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http://www.gnosijournal.com/index.php/gnosi/article/view/143 http://www.gnosijournal.com/index.php/gnosi/article/view/143 agbioforum, 23(2): 61-71. ©2021 agbioforum a time series analysis of the effects of agriculture credit and extension services on crop productivity in malaysia rida shibli al-ahliyya amman university, hourani center for applied scientific research email: r.shibli@ammanu.edu.jo sobhia saifan al-ahliyya amman university, hourani center for applied scientific research email: s.saifan@ammanu.edu.jo junainah abd hamid management and science university email: junainah@msu.edu.my https://orcid.org/0000-0003-3078-6123 i.a ariffin management and science university email: indang@msu.edu.my https://orcid.org/0000-0002-1376-7126 jacquline tham management and science university email: jacquline@msu.edu.my https://orcid.org/0000-0003-0966-2425 the primary purpose of the present study is to evaluate the impact of agricultural credit, technical efficiency, and extension services on the crop productivity. the context of the study was based in malaysia and the paddy rice were used as the premier crop. the data was collected from the malaysian farmers. the method of the study was based on the two-stage estimation process. the technique was used to first evaluate the determinants of the credit access and extension services. the first stage of the study used the probit model and the second included the stochastic frontier approach. the findings of the study show that farmers are producing below the frontier with average technical effectiveness of 47 percent. the policy factors like credit access, education, extension, and farm size showed that the crop productivity is largely influenced by these factors. the access to agricultural credit and extension services was found to positively influence the crop productivity. technical efficiency was also found to predict the crop productivity of the region. the results of the study hold implications for the agricultural sector. these findings can be used for the development of policies and procedures for the increase in productivity of the malaysian agricultural sector. keywords: technical efficiency, agricultural credit, stochastic frontier, extension services, farm households, productivity. 1. introduction using new farming techniques in the modern world could be difficult for the farmers initially as these practices require a lot of investment and time to be added to a daily routine. however, the farmers in such circumstances can be provided with adult learning by providing them knowledge through different seminars, educational walks, and surveys so that such knowledge can support them to develop their farming strategies as per the demand of consumers and to enhance the economic stability in the country with increased efforts carried out in the promotion of green plants by boosting the productivity. the impact of agriculture credit had a great impression on the economic stability of country as the business practices were increased due to the sue of sustainable development in agriculture (fuzi, habidin, janudin, & ong, 2019). the agriculture education provided to the farmers has been provided to greatly impact their farming abilities as per the use of time series analysis in this practice. as a result, it can be seen that the farmers have boosted their abilities to attain a better quality of crops and to understand the demands of new world consumers. in addition, the farmers have enhanced their abilities to increase their financial resources so that the customers can attain better quality crops with increased efforts of farmers in the sustainable practices used in the improvement of agriculture (hassan, othman, & abd karim, 2011). in different researches, it has been revealed that the time series analysis has been helpful to analyze the impact of sustainable development in the agriculture practices of malaysia with the context of agriculture credit. the researchers have shown that the farmers provided with the agriculture extension services had attained great opportunity to increase the quality of their agriculture products to a level of 5%, as noted in malaysia. furthermore, the impact of such educational services conducted in malaysia was proved to have a positive impact on farmers as they utilized the new techniques in their daily tasks to satisfy consumers' demands. agriculture credit is seen to have a positive impact on productivity of crops in malaysia. the problem statement is based on the impact of agriculture extension services in malaysia and the role of agriculture credit on the efficient quality of crops that are grown in agriculture department. the researchers in current study are required to gather information through time series analysis in order to gather data through different intervals and find out the actual significant impacts. the agriculture credit has increased the economic development as well as the standard of living of various farmers at a global level. even in malaysia a lot of campaigns have been established to encourage crop productivity with extension services. the current study is based on solving the gaps that have been occurred to make the agriculture extension services better and the agriculture credit provided to farmers. this is the utmost need of modern era to provide considerable amount of credit to farmers for upgrading their business but a lot of studies are lacking in such aspects to mitigate the issues. it is required to highlight significant aspects that show the importance of agriculture credits and the literacy rate of farmers collectively working to promote crop productivity. the current study is based on illuminating essential roles of extension services and the agriculture credits in malaysia (shahbaz, loganathan, sbia, & afza, 2015). mailto:r.shibli@ammanu.edu.jo mailto:s.saifan@ammanu.edu.jo mailto:junainah@msu.edu.my https://orcid.org/0000-0003-3078-6123 mailto:indang@msu.edu.my https://orcid.org/0000-0002-1376-7126 mailto:jacquline@msu.edu.my https://orcid.org/0000-0003-0966-2425 agbioforum, 23(2), 2021 | 62 shibli, saifan, hamid, ariffin and tham. — a time series analysis of the effects of agriculture credit and extension services on crop … according to the reference of previous studies it was believed that the farmers did not utilize the actual amount of credits in the crop fields. the paid amount for the upgradation of agriculture resources was not fully equipped for the intended purpose. various studies also recommend that the extension services provided to farmers were not that capable pf providing tem enough information about the agriculture issues and the framers could not hold up to difficult situations as revealed through time series analyses utilized in the previous studies. the current research paper fills up all such gaps and illuminates the awareness for farmers as a main source to increase their income level by using the provided amount of agriculture credit in right way. the study states to elevate the level of knowledge provided to farmers in accordance to sustainable development so that they can utilize their skills credit amount to enhance crop productivity (utami, indrianto, & pratama, 2019). according to the information provided in the background and justification rationale the current study objectives can be proposed to have a significant impact on crop productivity. it is evident from past researches that farmers were not that appreciated for their concerns towards cultivation of crops and providing better quality of grains in market. in relevancy to these issues the current study highlights following objectives: • to track the fast development of crop productivity with reference to agriculture credit. • to identify the flaws with time series analysis in extension services and farming practices in malaysia. • to highlight the need of farmer literacy with elevated level to build new skills in farming practices. the probability of agriculture extension services was known to have a considerable positive impact on farming processes as the increase in rice yields and quality of other different crops was noted to be 61% compared to the previous estimates. the current study is based to fulfill the gaps highlighted in problem statement and to increase the crop productivity by having a strict evaluation system on farmers to utilize the agriculture credit amount for intended purposes. the main purpose of agriculture credit and extension services must be conveyed to farmers through different campaigns and programs for better performance in agriculture department (austin & baharuddin, 2012). the significance of agriculture extension services is based on various essential aspects including implementation of farm managerial skills, technical knowledge enhancement and providing enough knowledge to farmers to utilize financial as well as other required resources in a meaningful way. the agriculture credit has its own importance to help the farmers in financial sector to increase the development of their land and to cultivate better quality crops to satisfy needs of consumers. farmers must be aware of operating the finances and other raw materials in managed quantities. the structure of study is based on standard research structure as in the first part introduction is discussed and second chapter provides information about literature review. the third chapter discusses methodology, fourth is based on results and findings while the last chapters shows the discussion and conclusion. 2. literature review 2.1. agricultural credit and crop productivity the agricultural credit is considered to play an essential in the modern development of agriculture. it leads to different opportunities in the agricultural field especially for rural areas of a country. according to de janvry, sadoulet, and davis (1995), the models for agricultural household introduce the significance of self-financing along with the agricultural credit (agbodji & johnson, 2021). such agbioforum, 23(2), 2021 | 63 shibli, saifan, hamid, ariffin and tham. — a time series analysis of the effects of agriculture credit and extension services on crop … models also help in determining the intervals between the inputs and the outputs. however, malik, mushtaq, and gill (1991), discussed the “two-stage structure model”. according to this model, the first stage consists of understanding the probability of use of the credit while in the second stage the already obtained information is analysed (akhtar, li, nazir, razzaq et al., 2019). thus, it has been observed that the agricultural credit helps in maintaining the operations of the agriculture . iqbal, ahmad, abbas, and mustafa (2003), encouraged the capital investments for crop productivity especially for the small-scale agricultural sectors. this improved the agricultural operations for effective outcomes leading to the increased production of the crops (chandio, jiang, gessesse, & dunya, 2019). boucher, guirkinger, and trivelli (2006), states that the crop productivity in peru constitutes of almost 40% of the reserved agricultural credit. many past studies have been conducted that showed the significant impact of agricultural credit on crop productivity (gershon, matthew, osuagwu, osabohien et al., 2020). this also help in improving the socio-economic situations of the farmers especially in the case of developing countries around the globe (rahman, othman, yajid, rahman et al., 2018). the agricultural credits can be of short-term or the long-term. the short-term credit is used for purchasing the fertilizers as well as pesticides, hiring of the individuals and other mechanical services (khan, kamal, ramazan, khan et al., 2018). whereas, for long-term credit, the investments are made for improvement of the land, purchasing of the machinery that could be used for long-term such as tractors, trawlers, boats and many other such machineries. it has been observed that different issues are faced by the farmers for agricultural credit in malaysia. according to “farmers' organisation authority (foa)”, the middleman in this process, are found to be responsible for the exploitation of farmers. “bank bumiputera malaysia (bbm)” supports the agricultural development in malaysia especially by providing them with different funds (saqib, kuwornu, panezia, & ali, 2018). the “rural and industrial development authority (rida)” was developed in 1950. this authority helped in providing useful credits for the farmers to run their operations however, this organization didn’t find better ways to resolve issues related to agricultural credit and other problems related to marketing. however, in 1965, the “federal agricultural marketing authority (fama)” was introduced. it encouraged the malaysian government to put capital inputs for the agricultural development of the country (bello, baiyegunhi, & danso-abbeam, 2021). the “first malaya plan (1956-60)” as well as the “second malaya plan (1961-65)”, both showed the significance of the cooperate movements for the development of the agriculture in the rural areas of the country. such reforms in the agriculture leads to the formation of the “agricultural bank of malaysia (bpm)” in 1969 (mastoi, mastoi, khetran, alizai et al., 2021). this promoted the number of loans or credits provided to the rural farmers for effective production of crop. the agricultural development leads to better economic development. the increase in crop production helps in providing better economic growth. as per above discussion, the following hypothesis is developed for this research study: h1: the agricultural credit has significant impact on the crop productivity. 2.2. extension services and crop productivity different programs for agricultural extension have been introduced which help in spreading the insecurities of food as well as poverty. according to fao, an extension is considered to be a tool that is used for the development of agriculture and this improves the economic development as well (d. ahmad & afzal, 2020). this helps in improving the production as well as standards of living. the technology plays an important role in providing the extension services for better crop production. the extension services play an important role in the “agricultural development program (adp)”. such programs help in improving the crop productivity (berhane, ragasa, abate, & assefa, 2018). the main of the adp is to increase the crop production by improving the crop inputs as well as improving the infrastructure for this purpose. the agriculture extension services adopt the new technologies for improving the crop production (danso-abbeam, ehiakpor, & aidoo, 2018). according to “theory of planned behavior (tpb)” introduced by ajzen (1991), the behavior of the rural farmers play a significant role in the agricultural management. according to elahi, khalid, weijun, and zhang (2020), the education of the farmers has an impact on their attitude towards various operations. the farmers with low intellectual knowledge were less able to adopt the professional behavior as compared to other farmers with more knowledge. the environmental knowledge of the farmers is also considered in this context. as the extension services, the farmers should have a good knowledge for the technologies being used for improving the agriculture system of the country (khanal, wilson, lee, & hoang, 2018; maginga, nordey, & ally, 2018). according to samiee (2019), the agents of extension services, were considered to be positive. thus, the training sessions should also be held for improving the knowledge of the farmers in order to launch the new technologies for carrying out the agricultural development process easily. the practices related to agri-cultural environment are also introduced in such sessions. according to knowler and bradshaw (2007), the extension services have an important impact in presenting the required information to the farmers and they also help in providing better inputs for the technologies of the firm. in malaysia one of the serious challenges faced by the agricultural extension services is the climate change. this is found to have an impact on the sustainable development. the extension services are offered by different private as well as public sectors in malaysia. the main focus of these extension services is to promote the technological services in the field by focusing the traditional style. thus, these services also provided options to minimize risks related to the agricultural environment digitally (shah & wu, 2019). agbioforum, 23(2), 2021 | 64 shibli, saifan, hamid, ariffin and tham. — a time series analysis of the effects of agriculture credit and extension services on crop … it has been observed that the increasing adoption if such technologies help in improving the marketing as well as risks reduction for the agricultural environment in malaysia. even though malaysia is found to have a lot of natural resources, it still faces different disasters such as floods, land sliding and even draughts. about 9% of the land is prone to be effected by the floods in malaysia. however, the extension services play an integral role in this case. it helps in improving the agricultural sector in malaysia (shakoor, northrup, murray, & mockler, 2019). however, due to less knowledge and information, still a lot of work is needed to be done in the agricultural sectors by focusing on the advanced technologies being used in today’s world for improvement of the extension services in the agricultural sectors of malaysia. such discussion leads to the formulation of following hypothesis for this research study: h2: extension service has significant impact on the crop productivity 2.3. technical efficiency and crop productivity according to masuku, raufu, and malinga (2014), the agricultural credit was found to have a significant impact on the technical efficiency thus leading to better and effective crop production. abate, dessie, and mekie (2019), stated that the private as well as public sectors have been considered for the credit for the betterment of the agricultural sectors. such credits help in improving the technologies used for environmental development (corches, mcbride, robles, rehman et al., 2020). such technical efficiencies are also found to be effective for the crop productivity as observed in different countries around the globe. different scholars were interested in determining the impact of agricultural credit on the technical efficiency (abdulai, nkegbe, & donkoh, 2013). such conducted studies showed the positive impact of the credit on the technical efficiency. according to yu, ninpratt, funes, and gemessa (2011), even though ethiopia, plays an important role in improving the economic growth as well as sustainable development but still due to lower technical efficiencies as well as poor socioeconomic factors, the crop productivity is not found to be progressed there (chandio et al., 2019). the inefficiencies lead to inefficient resources that could be used for agricultural development. according to asfaw and shiferaw (2010), even if the new technologies are implemented for the agricultural development, without the technical efficiencies, proper and effective outcomes will not be observed. the inputs provided should applicable effectively for better results (dessale, 2019). however, different policies are being developed that focuses more on improving the efficiencies of the farmers rather than that of promoting more new and expensive technologies. the knowledge of the farmers is thus considered to be important for this purpose. the application of technical efficiency is to increase the output by comparative usage of the inputs. this helps the firms in utilizing the wastes from the inputs as well to have effective outcomes. this improves the overall performance of the firm (gong, battese, & villano, 2019). however, the agricultural credit has a direct impact on the technical efficiency. this shows the binary impact of technical efficiency on the crop productivity. the “probit model” is used for measuring the technical efficiency. this model determines the binary impact of technical efficiency for better and effective crop productivity (jara-rojas, bravo-ureta, solis, & arriagada, 2018). however, in malaysia, the technical efficiency is considered very important especially for the agricultural sectors. two methods are used in order to measure the level of technical efficiency which include: parametric as well as nonparametric. such methods are conducted in determining the impact of technical efficiency on crop productivity small agricultural sectors mostly located in the rural areas of malaysia (khanal et al., 2018). different factors are also considered to be effective for this purpose which include the investment of the capital, knowledge of the farmers, expenses, research and development and as well as the technologies being used in the agricultural sectors. the size of the firm is also considered to have an important impact on the technical efficiency observed (mwalupaso, wang, rahman, alavo et al., 2019). with the passing time, the use of technologies is being increased in the agricultural sectors of malaysia especially for improving the sustainable growth by preventing the wastage of natural resources without hindering the economic growth of the country (ngango & kim, 2019). the main focus of technical efficiency is to improve the crop productivity. this explanation leads to the formulation of following hypothesis: h3: technical efficiency has significant impact on the crop productivity model 3. method 3.1. econometric framework agriculture is an essential sector for malaysia, for many years, the sector has been providing support to the malaysian economy and drives exports as well. the national agro food policy of malaysia is targeted to improve the agricultural production by 4% each year to attain a level of self-sufficiency. the government has been developing credit policies for ensuring the wellbeing and extending support to the local farmers. the relationship between credit policies, extension services, technical agricultural credit extension services technical efficiency crop productivity agbioforum, 23(2), 2021 | 65 shibli, saifan, hamid, ariffin and tham. — a time series analysis of the effects of agriculture credit and extension services on crop … efficiency with crop productivity is relatively unclear. primarily the relationship between technical efficiency and agricultural credit is unclear. moreover, the presence of unobserved endogenous associations and the possibility of biased selection has been pointed out as an issue in previous studies of this nature (imbens & wooldridge, 2009). for neutralizing the effects of these hindrances, a two stage impact assessment method has been recommended by oduol, binam, olarinde, diagne et al. (2011) and abdallah (2016) and is being adopted in the present study. in the first stage of the analysis as recommended by asante, wiredu, martey, sarpong et al. (2014), the probability of accessing agricultural credit, access to extension services and technical efficiency is estimated and the scores for these factors are generated. in the next stage, the scores of credit access, extension services, technical efficiency along with other variables are regressed on the resultant scores of crop productivity to determine the direct effect of the explanatory variables on the explained variable. this approach adjusts for endogeneity in the explanatory factors before they are incorporated in the crop productivity estimation. due to the binary nature of the dependent variable, the probit model has been used for performing the econometric evaluation. to determine the factors influencing the crop productivity, it has been stated that the variable is dependent on a latent variable which is unobservable and is denoted as 𝐶𝑃𝑖 = 𝛽′𝑋𝑖 + 𝜀𝑖 β is an estimable parameter vector of xi and which is a vector of the independent factors that influence the crop productivity of the malaysian farmers. from the first equation xi is an index function that allows the estimation of the probability of the crop productivity through the following expression: 𝐶𝑃𝑖 = 𝑃(𝐶𝑃ⅈ̇ = 1𝗅𝑋𝑖) = 𝑃(𝐶𝑃 ∗ ⅈ̇ ≤ 𝐶𝑃𝑖) =p(𝑍1 ≤ 𝛽′𝑋𝑖)= f(𝛽′𝑋𝑖) in the above expression zi is representative of the standard normal variable assumed to be n(0, σ2 ); whereas f is representative of the cumulative normal distribution function. the second expression will be estimated through the mle. the primary assumptions for the interactions between the factors influencing the crop productivity, the second stage of the estimation process involves the estimation of the stochastic frontier model. the stf is based on the stochastic frontier production function which includes the probability of the crop productivity. therefore, the cobb-douglas production function will be used to estimate the association between the input and output factors ln yi= 𝑙𝑛 𝛽0 + ∑ 𝛽𝑗𝑙𝑛 𝑋𝑗𝑖 5 𝑗=1 + 𝑣𝑖 − 𝑢𝑖 in the above expression the subscript “i” refers to the farmer in the sample and “j” refers to the index of inputs. the term βj is a vector of technology, institutional and credit factors and vi is the random error term that is assumed to be independent. the term ui refers to the technical inefficiency that is independently distributed among the factors. and lastly, the term βi is representative of the elasticity of production with respect to the input used and is one of the most essential parts of the cobb-douglas production function. 3.2. data and variable description the cultivation of paddy in malaysia is one of the primary crops under the agricultural sector (firdaus, leong tan, rahmat, & senevi gunaratne, 2020). first, rice is a basic food product for the malaysian population and averagely malaysian adults consume 2.5 plates of rice per day. secondly, for the paddy farming community the crop is the primary income source and livelihood. therefore, the present study considers data from the perspective of malaysian farmers and concentrates primarily on the factors focusing on paddy rice production. the variable selection was based on the evidence generated through previous studies. the previous studies on agriculture have indicated that household output can be used to ascertain the value of the farmer (gonzález & lopez, 2007). thus, the output and productivity of the crop is represented by the crop value and the results indicates that on average the total average volume of the crop output is gh¢ 234.128. this is the output of crop that is produced utilizing averagely less than a hectare of land, gh¢ 12.223 of labor, gh¢ 21.566 of seeds, and gh¢57.819 of agricultural chemicals for production. thus, as specified the application of stochastic frontier method in the study makes it probable to identify the inefficient factors. several technical and socioeconomic variables have been incorporated in the model for observing the variable associations. the education and experience of the farmers was incorporated to capture the human capital in the rice production of the malaysian farmers. the results in table 1 show that mean age of the farmers was 59.2 and schooling was 6.7. indicating that the rice farming industry is dominated by middle aged farmers having minimal education. for accounting the characteristics of the farm household, the factors of gender and credit were also included. gender distribution indicates that 67% of the farmers were male. moreover, the factors for extension i.e., attendance in community meetings, received advice from da, visited by da, visited government office, and usage of radio for access to production information indicated that on average 23 percent of the farmers received advice from da, 45% attend community meeting, 78% visited the da, 21% visited the governmental office, and 58% had access to production information. on average the access to extension services was menial. additionally, the irrigation access was evaluated through a dummy variable having value 1 if the farmer had access to agricultural credit and technical efficiency and 0 for others. the farm size informs of the resource situation of the farmers and the revenue indicates of the effective resource utilization. the results show that the farmers were equipped to utilize their resources effectively. at last, the statistics indicate that less than 30% of the farmers had credit guarantors, thus, showing that the access to credit was limited. agbioforum, 23(2), 2021 | 66 shibli, saifan, hamid, ariffin and tham. — a time series analysis of the effects of agriculture credit and extension services on crop … table 1: descriptive statistics mean sd revenue (gh¢) 234.128 526.211 farm size (ha) 0.890 3.007 labor cost (gh¢) 12.223 75.133 fertilizer cost (gh¢) 21.566 57.818 seed cost (gh¢) 57.819 359.052 agro-chemicals cost (gh¢) 37.412 18.284 gender (dummy) 0.671 0.352 age of farm manager (in years) 59.269 12.944 education (in years) 6.757 6.375 irrigation (dummy) 0.286 0.558 attended community meetings 0.453 0.322 received advice on fertiliser or seed from da 0.231 0.415 visited by da in last 5 years 0.789 2.007 uses radio to get production information 0.581 2.17 visited government office 0.214 0.351 credit access (dummy) 0.247 0.431 yields (kg) 394.080 774.581 guarantor (dummy) 0.285 0.531 default (dummy) 0.506 0.500 4. results as discussed before, a probit model is being implemented for studying the factors for influencing crop productivity. the results of the probit estimation is depicted in table 2. for controlling the effects of heteroscedasticity, the model was estimated using robust standard errors. moreover, only the signs of the coefficients are used for interpreting their effects on the dependent factor and not their magnitude as the probit model is non-linear. the results show that gender has a positive association with crop productivity. this indicates that the probability of the crop being productive is higher among male farmers as compared to the female counterparts. the results are plausible in the asian context as most of the households are dominated by the male members and male farmers are more abundant. also, the productivity of the crop refers to the overall revenue and considers factors like overall production and labor as well. as these resources are within the control of the males and are managed more abundantly by them. thus, within the asian context farming is a career option functional by the male counterparts of the families. also, it implies that access to credit is also affected by the gender. as indicated by abdallah (2016) the male counterparts of the farming families have greater access to agricultural credit. in another study, weber and musshoff (2012) showed that the probability of credit accessibility is independent of gender and is modulated by the productivity of the crop. another study, armendáriz and morduch (2010) indicated that females have higher access to credit. the next factor that influences the credit access is age of farmers. the results of the present study are insignificant. while the age of the farmers shows an insignificant association with credit access, age square reflects of a negative association with credit access. this factor is a proxy for old age and indicates that farmers who are of old age have a declining probability to access agricultural credit. the knowledge variables like education and extension show a negative access to credit. the negative and significant relationship of education indicates the access to credit decreases as the number of years expended in formal education increases. these results are consistent with weber and musshoff (2012) and disputes the findings of akudugu, egyir, and mensah‐bonsu (2009) who found an inverse association between formal education and credit access. another study by khanal et al. (2018); khantachavana, verteramo chiu, turvey, and kong (2012) indicated that level of access to credit increases with the number of years spent in formal education in mexico. extension services indicate of a negative association as well. the access to credit is lower among the farmers that have access to extension. two variables were used for the evaluation of the collateral security of the farmers. the yield of crop from the preceding season and the access to guarantor were used to study the collateral security of the farmers. the access to guarantor is negative and indicates that the farmers that have some collateral security or validation from some guarantors have a higher chance of accessing agricultural credit. these results are contradictory to the findings of dzadze, aidoo, and nurah (2012). also, the yield of crop is positive and significant thus indicating that credit access increases as the yield from the crop increases. thus, the yield of crop plays an essential role in leveraging the credit access for farmers. table 2: factors affecting the access to credit variable coefficient robust se z gender 0.3284486 0.1487068 2.21** age of farm manager 0.006857 0.0096676 0.71 age square −0.0001847 0.0001047 −1.76* education −0.0323595 0.0093325 −3.47*** farm size −0.0042221 0.0186346 −0.23 extension −0.2239864 0.1238716 −1.81* group membership 0.2401831 0.1455278 1.65* default 0.6217361 0.1445002 4.30*** guarantor −0.0239167 0.1189668 −0.20 yield 0.0001441 0.0000836 1.72* constant −0.4753776 0.2687007 −1.77* goodness of fit measures wald χ2 94.28 probwχ2 0.0000 log likelihood −332.85085 pseudo r2 0.1511 the access to extension services was studied through 5 indicators. the probit model is used here as well, thus, only the sign will be used to study the association and not agbioforum, 23(2), 2021 | 67 shibli, saifan, hamid, ariffin and tham. — a time series analysis of the effects of agriculture credit and extension services on crop … the magnitude. the first factor is attending community meetings. the attendance of community meetings is significant and indicates that access to the extension services increases as the farmers move around in the community. the community meetings allow the farmers to socialize in their community and learn facets relating to farming activities (deressa, hassan, ringler, alemu et al., 2009). the access to extension services is affected by the fertilizer or seed advice. these results are significant as well and are positive. the next three factors are insignificant but depict of a positive association. table 3: access to extension services variable coefficient robust se z attended community meetings 0.009* 0.568 0.568 received advice on fertiliser or seed from da 0.225*** 46.260*** 0.556*** visited by da in last 5 years 0.301 1.000 0.063 uses radio to get production information 0.106 0.641 0.424 visited government office 0.003 1.122 0.258*** goodness of fit measures wald χ2 (10) 92.38 probwχ2 0.0000 log likelihood −432.84094 pseudo r2 0.1612 the results from the mle are depicted in table 4. the stochastic frontier function is used for the estimation of the production function. the coefficient of the function is representative of the proportional change in the output factors where all input factors in the model are changing by approximately 1.53%, which shows that the scale returns are increasing. from the depicted results in table 4, the parameters of farm size, seed cost, labor cost, extension services, fertilizer cost, and credit access are significant. also, all of the factors except farm size are significant at the 1% level of significance other than farm size which is significant at the 5%. these findings suggest that the crop productivity could increase through the increase in the amount of the seed, fertilizer, and land invested in the crop production. also, the increases access to credit and increasing access to extension and educational services can increase the productivity of the crop. in other words, if the land under the rice cultivation, with the required input of fertilizer, seeds and labor was increased by 1 percent than the mean productivity of the rice crop would increase by 0.2, 0.22, 0.7 and 0.39 percent. moreover, if the access to credit and extension increases by 1 percent than the crop productivity reduces by 0.3 and 0.13 percent respectively. the next series of findings relate to the association of technical efficiency and productivity of the crop. the results show that the parameter of 𝛾 is statistically significant at the 5 percent level of significance. these results show that the inefficiency of the model is significant among the studied households. these results are also indicative of the fact that the differences between the observed and actual output is modulated through the technical ineffectiveness i.e., the factors that the farmers have no control over. this suggests that the technical ineffectiveness is stochastic within the region. the human capital variables like education and age of the farmer show that education and age of the farmers influence the technical efficiency and therefore affects the productivity of the crop in a similar trend. these results are supportive of the findings of the previous studies (abdallah, 2016; m. ahmad, mustafa, & iqbal, 2016). also, the gender of the farmers is found to influence the productivity of the crop. the results indicate that the efficiency of the male headed households is superior and thus by trend the productivity of these farms or households is greater as well. the findings also indicate of the experience of positive influence of the experience of the farmers. the farming households with greater experience were aligned with technical efficiency. table 4: stochastic production function for malaysia variable coefficient robust se z lnfarmsize 0.20783 0.11859 1.75* lnseed 0.22367 0.04185 5.34*** lnlaborcost 0.70100 0.04629 15.34*** lnfertilizercost 0.39917 0.06788 5.88*** lnextension services −0.33881 0.15937 −2.13*** lncreditaccess −0.13957 0.15963 −0.87*** constant inefficiency model 2.74010 0.06030 4.05*** gender −0.72615 0.24663 −2.94*** age −0.01569 0.00504 −3.11*** education 0.01495 0.01462 1.02 farm size −0.290 0.033 −0.51*** irrigation −0.13957 0.15963 −0.87 score of credit access −1.58338 0.22559 −7.02*** constant variance parameters 1.62500 0.23610 3.03*** 𝜎2 = 𝜎𝑣 2 + 𝜎𝑢 2 0.659 0.086* 𝛾 = 𝜎𝑢 2 𝜎2 0.937 0.018** 𝜎𝑣 2 0.618 0.088* 𝜎𝑢 2 0.041 0.010** mean technical efficiency 0.476 mean credit access 0.456 mean access to extension services 0.47 function coefficient 1.532 log likelihood − 1099.7104 5. discussion a “probit model” is developed for this research study in order to determine the impact of different variables on crop productivity. the “robust standard errors” were used to estimate this model. due to the “non-linearity” of the model, only the interpretation of the coefficients was done and no magnitude was determined. the results obtained included: “significant levels” as well as “sign of the coefficients”. the results obtained from this research study showed that the gender plays a significant role in obtaining the agricultural credit. as it has been observed that the males in malaysia are the in-charge of the homes and they are the ones who control the usage of all the resources so, they are more likely to get agricultural credit contrary in the case of agbioforum, 23(2), 2021 | 68 shibli, saifan, hamid, ariffin and tham. — a time series analysis of the effects of agriculture credit and extension services on crop … females in malaysia. however, according to weber and musshoff (2012), the probability of obtaining an agricultural credit was not impacted by the gender. according to armendariz and morduch (2010), the females were more likely to get the credit as compared to the males. the impact of age on the agricultural credit was found to be mixed. however, it was observed that the age had an insignificant impact as well as a “positive relationship” with the access to the credit. the access to the credit is found to be increased as the age increases however, it gradually decreases at the old age. whereas, tadesse (2014), states that age has both significant as well as positive relation with the access to the credit. this contradicts the findings of the research. the findings also showed that the knowledge and educational factors have a negative impact on the agricultural credit. however, according to khanal et al. (2018), the number in the educational sector increases the access to the credit. the guarantors were also found to have least impact on the agricultural credit. the farmers with no guarantors were more likely to have an easy access to the credit. according to dzadze et al. (2012), a positive relationship was observed between the guarantors and an access to the credit. the extension services also found to have a negative impact on the access to the credit but tadesse (2014), shows contrary results to this. according to “cobbdouglas stochastic frontier model”, for technical efficiency, four determined variables were determined which included: “size”, “seed”, “labor cost” and “fertilizer cost” which showed that with the increasing input, the output also increases. jaforullah and premachandra (2003) and ogundari (2008) also supported these findings in their studies. however, the technical efficiency in the agricultural sector of malaysia was found to be much lower as compared to other western as well as eastern countries. therefore, the use of improving technologies in the agricultural field, have also found to be effective. such technologies reduce the labor as well as time and more work is done in the minimum time possible. thus, the technical efficiency is found to be significant in this case as it helps the farmers especially from the rural areas to work more effectively to improve their crop production. this also includes many other significant factors to have better output for sustainable development. however, the extension services were also found to have a significant impact on the agricultural credit which in return helps in improving the crop productivity. it has been observed that the farmers who have extension services are more likely to have technical efficiency which helps them in utilizing the resources to achieve the higher crop productivity in malaysia. 6. conclusion this study was conducted to determine the impact of agricultural credit, technical efficiency and extension services on crop productivity in malaysia. three important results obtained from this research study. first, the findings of the study concluded that different factors including: “gender”, “membership”, “social organization” and “default” have positive impact on the agricultural credit whereas, “old age”, “educational level”, “extension services” and “yields” show negative impact on access to the credit. second, the output of crop productivity increases with the increase in an input. different significant factors determined by this research study include: “farm size”, “seeds”, “labor” and “fertilizer”. these factors help in improving the output. different characteristics of households are effected by technical efficiency and significant factors play an important role in this case. third the extension services are also found to have significant impact on the agricultural credit which in return improve the crop productivity. in case of the policy, different variables such as “credit access”; “human capital” such as “extension access” and “farmer’s resource” such as “farm size” are considered to play important role in this case. however, for agricultural credit, different reforms should be made including different procedures of application as well as promoting education. different communication methods should also be used to promote farmers knowledge. however, the variables of the human capital, are used for methods for extension services in order to educate the farmers to improve technical efficiencies. 7. limitations and future research indications for this research study, a limited no. of past research studies were considered as no proper literature review was available. however, this research study will provide better data for the future studies in order to have proper understanding as well as analysis of the data. few variables are considered for this research study in order to determine their impact on the crop productivity. these variables include: technical efficiency, extension services and agricultural credit. however, there might be many other such variables that have an impact on the crop productivity. thus, for future studies many other important variables such as environment, technologies, politics etc. should also be taken into count. this will help in determining the impact of different input variables as well which will help in improving the required outputs. the current research study was conducted in the context of malaysia. this only depicts the situation of crop productivity in the developing countries. however, for future studies, cross-sectional studies should also be conducted including the developed as well as developing countries to have a better analysis of crop productivity. however, the “policy point of view” should also be elaborated in such cases in order to have quality regulations to have an effective crop productivity in a country. 8. implications this research study not only helps in determining the impact of different variables on crop productivity. it helped in determining the importance of education of the farmers especially in the rural. as this could help in improving the technical efficiency of the farmers for better crop productivity. different policies are developed by the agbioforum, 23(2), 2021 | 69 shibli, saifan, hamid, ariffin and tham. — a time series analysis of the effects of agriculture credit and extension services on crop … malaysian government to educate the farmers. the extension services are also found to be effective in this process. the extension services are offered by different private as well as public sectors in malaysia. the main focus of these extension services is to promote the technological services in the field by focusing the traditional style. thus, these services also provided options to minimize risks related to the agricultural environment digitally. different means of communication such as televisions, newspapers as well as radios are being used for educating the farmers. many banks in malaysia have also increased their no. of applications for agricultural credit. this helps in proper utilization of the human capital thus increasing the output in the form of better crop productivity. reference abate, t. m., dessie, a. b., & mekie, t. m. 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https://www.ifpri.org/publication/cereal-production-and-technology-adoption-ethiopia https://www.ifpri.org/publication/cereal-production-and-technology-adoption-ethiopia agbioforum, 23(2): 37-49. ©2021 agbioforum mediating role of entrepreneurial marketing between green marketing and green management in predicting sustainable performance in malaysia's organic agriculture sector rida shibli al-ahliyya amman university, hourani center for applied scientific research email: r.shibli@ammanu.edu.jo sobhia saifan al-ahliyya amman university, hourani center for applied scientific research email: s.saifan@ammanu.edu.jo mohd shukri ab yajid management and science university email: shukri@msu.edu.my https://orcid.org/0000-0001-5688-4392 ali khatibi management and science university email: alik@msu.edu.my https://orcid.org/0000-0002-2531-7720 sakinah mohd shukri management and science university email: sakinahshukri@msu.edu.my https://orcid.org/0000-0002-9100-014x the present study aimed to examine the role of entrepreneurial marketing as a mediating variable in the relationship between green marketing, green management, and dynamic capability with sustainable performance in the organic agriculture department of malaysia. the researcher used the sem-pls technique to develop a model showing how green marketing, green management, and dynamic capability influence on entrepreneurial marketing which consequently leads to improvement of factors of sustainable performance for the agricultural firms in the sector of organic agriculture. the research model was more validated by using the model fit indices and all the results were satisfactory. findings showed that there was a full mediation of entrepreneurial marketing in this model. the direct relationship between green management and sustainable performance in this sector, however, was found to be insignificant. the findings can be interpreted to comment that in the presence of effective marketing strategies and dynamic capability, firm performance in organic agriculture market of malaysia is highly sustainable and the mediation of entrepreneurial marketing can lead to better impact of these factors as well as of green management on overall sustainable performance. the researcher has used these findings to present specific as well as general implications of the study. furthermore, limitations of the study are also highlighted so that future researchers can eradicate them in their studies keywords: dynamic capability, entrepreneurial marketing, sustainable performance, green marketing, green management 1. introduction green agriculture in malaysia has played a major role in the sustainability of organic crops. it was reported in the study that various environmental concerns have been emerging in the country to investigate the innovations that need to be implemented in the managerial sector of agriculture and the environmental department. green agriculture is the best practice that could promote sustainability in the natural resources and make it more efficient and fertile to gain better quality crops. the green practices have also helped in various mechanisms to enhance the capacity of soil and increase the diversification of grains by utilizing different practices (saudi, obsatar sinaga, & zainudin, 2019). in the context of malaysia, green agriculture has played a significant role in the marketing sector for increasing the publicity of such crops in the market. the green practices used to produce organic crops and plants have made the agriculture department much more efficient. these crops have been traded to other countries as well so that the quality business of malaysia can also be enhanced. planting green crops with the new techniques to utilize the sustainable efforts of farmers has made it beneficial for the country to promote suitable agriculture practices. green marketing and green management have been encouraged in malaysia from past years in order to bring sustainability in agriculture department (asadi, nilashi, safaei, abdullah et al., 2019). various studies have suggested that green farming practices have been utilized in the country at a high rate. the farmers have been increasing their attention towards the sustainable programs and the methods of production of green plants due to their increased profit and the benefits in the future. the entrepreneurship of green fields and crops in other countries has been noticed to have a major impact on farmers' income, especially those who live in rural areas. this is because the economic viability has been increased with a wide variety of crops, plants, and grains cultivated. the significant phenomenon of utilizing green strategies in malaysian agriculture sector have been appreciated as green marketing provides economic growth and encourages other people to invest in providing the resources to save the crops from further disruption as sustainable practices are in demand to be utilized in agriculture department. at domestic level green practices used in malaysia for agriculture sector have been playing role in lowering deforestation activities and recycling organic waste in order to promote sustainability. the green marketing has been praised at global level as consumers are demanding for green technology to be used in agriculture. such practices were not that frequently used before as there was lack of awareness to framers as well (abdullah, sabar, & mustafar, 2018). green marketing can also be stated as the environmental marketing as it has a positive consequence on environment as well as in agriculture department. it must be ensured that the green marketing or management activities must mailto:r.shibli@ammanu.edu.jo mailto:s.saifan@ammanu.edu.jo mailto:shukri@msu.edu.my https://orcid.org/0000-0001-5688-4392 mailto:alik@msu.edu.my https://orcid.org/0000-0002-2531-7720 mailto:sakinahshukri@msu.edu.my https://orcid.org/0000-0002-9100-014x agbioforum, 23(2), 2021 | 38 shibli, saifan, yajid, khatibi and shukri. — mediating role of entrepreneurial marketing between green marketing and green management… not mislead as it may have adverse impacts of the practices are not followed according to the regulations. the purpose of this paper is to provide ample of knowledge which can be utilized to solve the issues that can be arise while utilizing the green marketing and management strategies in their daily activities. the study also discusses the role of business sector in promoting sustainable performance in agriculture sector of malaysia. in the context of previous studies, it can be said that there were considerable gaps in analyzing the aspects of green marketing. the extent of familiarity to green methods of agriculture and green management in the farming practices was not known before. mostly the traditional activities have been noticed in previous studies. in light of these gaps, it is the need of the hour to provide information which provides help in the field of green farming and to introduce new technology in agriculture to enhance the growth of entrepreneurship in the respective field. as the past papers have shown no concept for sustainable growth in agriculture, the respective study is based on finding new means to promote the green marketing and management strategies that could collaborate to enhance environmental sustainability as a whole. the gaps in traditional methodologies are examined and mitigated in the current study with the help of new techniques involved in agriculture department. in accordance to information provided in background, the objectives of current study includes providing facilities to farmers about green practices in agriculture field so that new technology equipment and techniques are utilized to upgrade the organic agriculture department and to enhance the entrepreneurship in green marketing for attaining economic stability in the country. green management is basically done to avoid waste and to promote recycling methods for encouraging sustainable activities. the objectives include: • to explore green management in reducing biodegradable waste • to study profitability that can be enhanced through sustainability • to analyze recycling methods that can be considered to promote green agriculture practices the current study is significant to consider the agriculture sector and to encourage the use of green marketing and sustaining practices in agriculture to promote the sustainability in malaysia. green marketing has significant importance in the respective field as consumers are highly demanding for better agriculture products according to modern era. according to a study the green marketing is all about promoting environmental sustainability which is considered to be increasing since last decade. farmers specifically from rural areas are shifting their traditional methods in green activities to fulfill the demands of consumers (supaat, ahamat, & nizam, 2020). sustainable procedures undertaken in agriculture department have a considerable role as it increasingly encourages the competitive environment. the agriculture department can produce the recyclable items in the market in order to improve the practices and to mitigate various gaps that were rising due to traditional methods being used in agriculture for decades in malaysia. the use of natural resources will be minimized and recycling methods would agbioforum, 23(2), 2021 | 39 shibli, saifan, yajid, khatibi and shukri. — mediating role of entrepreneurial marketing between green marketing and green management… be encouraged to gather more profitable outcomes in future. green marketing and management can also aggravate the long term growth of business in agriculture sector to increase economic stability as well (firdiansyah, mohamed, yusoff yusliza, saputra et al., 2021). in the current paper a standard structure would be followed as initially the research would be providing information about background of the selected topic. in the next part literature review would be discussed. then the methodology for research that is being used during the study. next would be the results chapter and in the end discussion and conclusion will be stated for further study. 2. literature review 2.1. green marketing and sustainable performance green marketing is defined by peattie (1995) , as the process of satisfying and managing the needs of the customers by considering the process for better profitability and sustainability. thus the green strategic marketing was designed by (banerjee, 2017). however, the impact of green marketing is long term on the sustainable performance of a corporate. according to papadas, avlonitis, and carrigan (2017), the importance of environmental management was taken seriously with the impression of “strategic green marketing orientation (sgmo)”. this leads to the importance of environmental factor to be added in the policies of different organizations while many any partnerships. this supports the organizations to partner with the organizations who are serious about their impact on the natural resources that could lead to sustainable development by improving the performance. the green marketing also supports the consumption of green products by the consumers . this helps in improving the sustainable development. for the progress of a country, the economic growth along with the retention of natural resources is especially important. this leads to sustainable development. thus, focusing on the significance of sustainability, the agriculture center in malaysia has initiated the project of consuming wastes to utilize through proper channels for different purposes. according to peattie and crane (2005), the green marketing goes through three distinct phases which include: phase i: “ecological green”, phase ii: “environmental green” and phase iii: “sustainable green”. pun (2006) also suggested an alternate name for green marketing which was “sustainable marketing”. this helps in innovating innovative ideas for protecting green products by the harsh and cruel environmental changes in today’s world. this leads to an increase in the interest of the consumers to buy more of the green products as they become aware of the advantages of the green environment for better sustainable performance. the green marketing thus plays an especially vital role in the sustainable performance of an organization. according to “acquisition-transaction utility theory (atut)” introduced by bei and simpson (1995), the psychological perception implemented by the strategic marketing encourages the organization to opt for more eco-friendly resources. this motivates them in buying the resources which are easily recyclable. the consumption of resources is a greater responsibility as it can make or destroy the future of different stakeholders of the company. this led to special objectives and strategies for protecting the resources. based on above discussion, the following hypothesis is formulated: h1: green marketing has significant impact on sustainable performance 2.2. green management and sustainable performance different studies in the past have been conducted to determine the impact of green management on sustainable performance due to the increasing no. of green issues observed in the world. however, the environmental awareness is improved by the approach of green management. whereas the sustainable development is to meet the needs of present without compromising the resources for the future consumption (buchert & stark, 2019). the significance of green management in sustainable performance has gained the interest of many scholars in the past. according to elkington (1994), the natural resources and the economic performance are all aligned. yong, yusliza, and fawehinmi (2019), also states that the “green uses” observed in the growing economy of malaysia, were also due to large consumption of green resources. the organizations are responsible for the sustainable performance. according to yusliza, norazmi, jabbour, fernando et al. (2019), the hr of the organization should be more focused on improving the sustainable performance. according to the “green intellectual capital”, defined by lópez‐gamero, zaragoza‐sáez, claver‐cortés, and molina‐azorín (2011), the organization should have a sum of good knowledge in order to manage the environmental resources for better sustainable performance (cain, zhang, & yuan, 2017). according to tonial, cassol, selig, and giugliani (2019), the activities of sustainability were supported by the “intellectual capital management”. similarly chang and chen (2012), determined the significant impact of green human capital on the sustainable performance. malaysia has used different resources for improving its sustainable performance. the palm trees are one of such resources. these help in management of pests as well as biomass (dal mas, 2019). this leads to the understanding of the importance of environmental management along with the economic growth. according to huang and kung (2011), the organizational structures are found to be effective in reducing the violation of the environmental resources. this leads to increase in number of new markets thus resulting in the increase of productivity and building the image of the corporate. similar is the case with the agriculture center in malaysia. however, a mediating impact of the trust and the relationship with the customer is observed between the environmental management and the economic growth of the organization (danese, lion, & vinelli, 2019). according to the “resources base view theory” i.e., introduced by barney (1991), the resources are agbioforum, 23(2), 2021 | 40 shibli, saifan, yajid, khatibi and shukri. — mediating role of entrepreneurial marketing between green marketing and green management… strategically exploited by the organizations to improve the sustainable competitive advantage. however, the “green intellectual capital” also plays a key role in improving the sustainable competitive advantage. this improvement in the sustainable competitive advantage leads to an improved sustainable performance of superior nature. based on above discussion, the following hypothesis is formulated: h2: green management has significant impact on sustainable performance 2.3. dynamic capabilities of firm and sustainable performance according to albort-morant, leal-millán, and cepedacarrión (2016), the dynamic capabilities of a firm have an impact on the sustainable performance by means of different techniques of “relationship-learning”. according to pace (2016), the adaptation of environment goes through various stages. this motivates the use of technology for this purpose (hashim, raza, & minai, 2018). according to “workable systems theory” introduced by teece (2007), the dynamic capabilities of a firm help in managing the information and spreading it to the managers for further transfer of information for the competitive purposes. this ultimately leads to competitive advantage which helps in improving the sustainable performance of the firm (hong, zhang, & ding, 2018). the two main parts of the dynamic capabilities include: strategies and resources. the resources help in improving the growth of the firm or the organization. this leads to the consideration of the sustainable development. as the natural resources used by the firm should be maintained to prevent their extension in the future (mousavi, bossink, & van vliet, 2018). the main and the final factor of dynamic capabilities is the strategy. the porter five forces model is also given consideration for this purpose. thus, the strategic measures help in improving the routine as well as strategic methods for the dynamic capabilities of the firm which helps in sustainable competitive advantage leading to the better sustainable performance (pervan, curak, & pavic kramaric, 2018). such kind of strategies help in determining effective methods in improving the competition in the market for green products leading to overall sustainable development. this helps not only in the economic growth but also in market development (pitelis & wagner, 2019). such discussion leads to the formulation of following hypothesis: h3: dynamic capabilities of firm has significant impact on sustainable performance 2.4. entrepreneurial marketing and sustainable performance according to “theory of r-a,” the organization is capable enough for developing new product or to improve the productivity of the already existing product. this could be done by using different approaches of leverages and by introducing innovations in new available resources (jaffar abbas, raza, nurunnabi, minai et al., 2019; granada & mejia, 2020). most of the organizations focus on their strategies to surpass their competitions in the market. according to bhuian, menguc, and bell (2005), the entrepreneurial marketing focuses more on finding ways to introduce more entrepreneurships in the market to break the competition with the existing markets by introducing an innovative idea in the market and this helps in attracting more audience. according to kocak and abimbola (2009), the emt has a positive impact on the sustainable performance of the firms, especially in the developing countries. malaysia also supports such type of marketing for positive and effective outcomes in the process of retaining natural resources (eikelenboom & de jong, 2019). however, the managing of the resources by the firm in a defined structure can also help it to have a healthy competition with the competitors in the market. but the innovative idea of emt helped may organizations including the agricultural center of malaysia in sustainable competitive advantage that helped in improving the sustainable performance of the organization (ge, yang, jiang, gao et al., 2018). this explanation leads to the formulation of following hypothesis for this research study: h4: entrepreneurial marketing has significant impact on sustainable performance 2.5. green marketing, green management, dynamic capabilities of a firm, entrepreneurial marketing, and sustainable performance many scholars have observed that for a better sustainable performance, varied factors must be kept in mind. these factors include: green management, green marketing, dynamic capabilities of a firm and entrepreneurial marketing (al-jubari, mosbah, talib, khalid et al., 2019; hong et al., 2018). according to “contingency theory of entrepreneurial marketing,” the leader or manager should be able to change the strategies for the best interest of the firm depending on the need of the hour. thus, in order to improve the sustainable performance of the firm, this theory motivates the leaders or the managers to change their strategies accordingly (khan, royhan, rahman, rahman et al., 2020). the agricultural center in malaysia is found to face different issues for sustainable performance. such issues could be resolved by keeping in mind the significance of entrepreneurship (wilden, gudergan, akaka, averdung et al., 2019). or the green management purpose, the emt marketing helps in introducing the innovative ideas for attracting the consumers of the green products by differentiating it from other competitors in the market. similarly, emt marketing helps in the green management of resources as well as the quality and prices are kept precise depending upon the demand of the product in the market. this improves the sustainable competitive advantage for a better sustainable performance (teece, 2018). however, the dynamic capabilities of the firm are also influenced by the emt marketing and new strategies are implemented for competitive advantage. this discussion leads to the formulation of following hypotheses: agbioforum, 23(2), 2021 | 41 shibli, saifan, yajid, khatibi and shukri. — mediating role of entrepreneurial marketing between green marketing and green management… h5a: entrepreneurial marketing mediates the impact of green marketing on sustainable performance h5b: entrepreneurial management mediates the impact of green management on sustainable performance h5c: entrepreneurial management mediates the impact of dynamic capabilities of firm on sustainable performance model 3. research methodology 3.1 research philosophy and design the current study is designed as a marketing and management survey on the organic agricultural sector of malaysia. some recent studies have shown that people in malaysia are becoming increasingly aware of the potential advantages to health provided by organic food sources and thus the demand for organic food is increasing, however, productivity and adoption at the farmers' end is low. therefore, in this study the researcher has selected malaysia study the impact of innovative marketing and management practices like entrepreneurial marketing, green marketing and green management can have on the sustainable performance and growth of the organic agricultural sector in malaysia. as for the philosophical paradigm that is driving the current study, the researcher has based the current study on the positivist philosophy which represents a traditional design of research which is generally for quantitative research and is termed as the scientific method for research (slife & williams, 1995). the underlying principle of positivism philosophy is objectivism for data collection and analysis i.e., researchers provide interpretations from the collected data in a way that no personal gains are achieved. thus, structured research techniques are used that facilitate the replication of the research process. in this study, the researcher has used deductive approach of research to design the methodology for collection and analysis of data as this study does not aim to explore any new theory. gliner, morgan, and leech (2016) stated that the deductive research approach can be linked to development of hypotheses based on theories and literature that has been justified in the past and designing a strategy to evaluate or analyze these hypotheses. it is usually termed as a reasoning mechanism in which the researcher moves the discussion and research direction from a specific reasoning to a broader application (jackson, 2015). furthermore, the aims and objectives of the current research support the use of quantitative analysis techniques and methodologies. as this study deals with the formation of hypotheses based on past data and theories and then collection of data that can validate these hypotheses quantitatively, therefore, the researcher has selected quantitative method. 3.2 data collection the sampling frame was the directory of craft msmes provided by department of cooperatives and sme and department of industry and trade. the directory gave names, address, and phone address of companies. the reasons for choosing craft sub-sector as the research object were: 1) it was one of the largest units in field of creative economy business; 2) it was one of the largest employment contributors in field of creative economy business; 3) it was one of the largest contributors to added value of creative economy; 4) it was one of the products of creative economy mostly consumed by the people; 5) the number of craft enterprises in malang city was 32.5%, malang city 60.4%, and batu city 29.4% of total enterprises in each region. as in the previous studies in developing countries (h. li & atuahene-gima, 2001), data were collected in site because mail and electronic mail system less developed. several 192 craft sme were identified and agreed to be interviewed. finally, the total responses that could be used were obtained reached to 130 enterprises representing the level of response of 49.4%. 3.3 data instrument and measures the questionnaire consists of two parts. the first part of the questionnaire includes a demographic section related to respondents of the company. the second part consists of thirteen indicators: environmental turbulence (2 dimensions), dynamic capability (3 dimensions), entrepreneurial marketing (7 dimensions), and competitive advantage (4 dimensions). the sevenpoint likert scale was used to measure the three categories of the construct, the scale from "1" strongly disagrees with "7" strongly agree. the seven-point likert scale is a valid and appropriate measurement because many previous studies have used seven scales. in this study, the dimensions of environmental turbulence are measured by adapting the indicators suggested by volberda and van bruggen (1997). the dynamic capability dimensions were adapted from d.y. li and liu (2014), the entrepreneurial marketing dimensions were adapted from becherer, helms, and mcdonald (2012) and sustainable competitive advantage dimensions were adapted from porter (1990), barney (1991) and chen, lai, and wen (2006). green management dynamic capabilities of a firm ent marketing sustainable performance green marketing agbioforum, 23(2), 2021 | 42 shibli, saifan, yajid, khatibi and shukri. — mediating role of entrepreneurial marketing between green marketing and green management… 3.4 description of respondents the demographic distribution of respondents is presented in table 1. the respondents have been categorized based on gender, age, and education. we find that most of the respondents have age > 40 years with undergraduate education level the type of business period, classification and number of workers activity being carried by the respondent units is shown in table 2. table 1: respondent profile sex age education distribution n % distribution n % distribution n % male 55 42.3 less than 25 years 21 16.2 up to junior high school 21 16.2 female 75 57.7 26 30 35 26.9 senior high school 34 26.2 31 – 35 27 20.7 diploma 10 7.7 36 – 40 31 23.9 undergraduate 58 44.6 41 – 45 11 8.5 postgraduate 7 5.3 over 45 5 3.8 table 2: business profile period of business business classification number of workers distribution n % distribution n % distribution n % ≤ 10 years 95 73.1 micro (up to 300 million rupiahs) 109 83.9 micro (1-3 persons) 13 10 10-19 years 23 17.7 small (300 million ≤ 2.5 billion rupiahs) 21 16.1 small (4-19 persons) 117 90 20-29 years 5 3.8 ≥ 30 years 7 5.4 4. results and analysis to evaluate the model that has been developed in this study, the researcher has used the partial least square (pls) approach. pls approach is beneficial for evaluation of model and to find relationship between the variables it aims to minimize the variance error in the model (j. hair, hollingsworth, randolph, & chong, 2017; sarstedt, hair, ringle, thiele et al., 2016). 4.1 description of respondents table 1 presented below shows the demographic distribution of the respondents in this study. the researcher has characterized the respondents based on their gender, age group and education level. gender disparity is not extremely high in the sample as out of 130 respondents fifty-five are male (42.3%) and seventy-five are female (57.7%). it is further found that most of the respondents have ages between 26 to 40 years (71.5%) and rest 16.2% are less than 25 years of age and 8.5% are above 40. as for education level, most of the respondents are in undergraduate programs (67.7%), 5.4% have degrees higher than undergraduate and 26.9% have lower ones. table 2: respondent profile gender age education distribution n % distribution n % distribution n % male 55 42.3 less than 25 years 21 16.2 up to junior high school 11 8.4 female 75 57.7 26 30 35 26.9 senior high school 14 10.8 31 – 35 27 20.7 diploma 10 7.7 36 – 40 31 23.9 undergraduate 88 67.7 41 – 45 11 8.5 postgraduate 7 5.4 over 45 5 3.8 table 2 presents the business profile of the respondents in terms of classification of business type, number of active workers and business period distribution. results show that 73.1% of the respondents have over one and less or equal to 3 years of experience in the field of organic agriculture, 17.7% have experience between 3 to 5 years, 3.8% have an experience of 6 to 10 years and rest 5.4% have over 10 years of experience. furthermore, it is found that 83.9% of the businesses are micro and 16.1% are classified as small businesses. as for the number of workers, 10% have 1 to 3 persons and rest 90% have around 4 to 19 employees actively working at any given time. table 2: business profile period of business business classification number of workers distribution n % distribution n % distribution n % 1 ≥ 3 years 95 73.1 micro (up to 300 million rupiahs) 109 83.9 micro (1-3 persons) 13 10 3-5 years 23 17.7 small (300 million ≤ 2.5 billion rupiahs) 21 16.1 small (4-19 persons) 117 90 6-10 years 5 3.8 ≥ 10 years 7 5.4 agbioforum, 23(2), 2021 | 43 shibli, saifan, yajid, khatibi and shukri. — mediating role of entrepreneurial marketing between green marketing and green management… 4.2 measurement model by use of outer model the outer model tests are used for describing the relationship that exists between the construct dimensions and their latent variables. the purpose or using outer model tests is to evaluate the construct reliability and validity. warp-pls 6.0 software how to use the pls method for analyzing the measurement model under three criteria which is discriminant validity, convergent validity, and overall construct validity. the presence of the convergent validity is a measure of the internal consistency in model i.e., the extent to which some items are suitable for measurement of the same concept and is measured by evaluation of the values of ave. discriminant validity is used for showing that the factors that were not related theoretically are not related as per quantitative findings as well and is evaluated by use of fornell-larcker criterion as suggested by j. f. hair, ringle, and sarstedt (2013). the loading factors are also presented in table 3 and they show that the loading factors are above 0.8, indicating that there are no overloading issues in the data. table 3: measurement model construct indicator loading factor cr ave entrepreneurial marketing (em) opportunity-driven 0.801 0.655 0.745 proactive 0.822 making capability 0.815 risk-taking orientation 0.877 innovation-focus 0.965 resources-leveraging 0.877 value creation 0.847 sustainable performance (sp) financial performance 0.832 0.745 0.891 non-financial performance 0.846 dynamic capabilities (dc) strategic-sense making capability 0.928 0.799 0.823 change implementation capability 0.921 timely decision-making capability 0.891 green management (gmg) product 0.872 0.821 0.964 production process 0.877 enterprise management 0.826 environmental management 0.874 green marketing (gmk) green product 0.872 0.627 0.762 green price 0.827 green place 0.836 green promotion 0.854 notes: ave = average variance extracted; cr = composite reliability the results of discriminant validity reflected in table 4 given below clearly show that the self-correlation values of the square root ave of each construct are higher than other correlations and no values, except for selfcorrelation are above 0.8, proving that discriminant validity is present in the data used in this study. table 4: correlations among l. vs. with sq. roots. of aves constructs em sp dc gmg gmk entrepreneurial marketing (em) 0.845 0.412 0.344 0.422 0.231 sustainable performance (sp) 0.412 0.869 0.321 0.423 0.475 dynamic capabilities (dc) 0.344 0.321 0.922 0.291 0.422 green management (gmg) 0.422 0.423 0.291 0.895 0.466 green marketing (gmk) 0.231 0.475 0.422 0.466 0.966 note: square roots of average variances extracted (aves) shown on diagonal. 4.3 structural model and overall model to evaluation of the overall strength of the model structure, the researcher used the r-square (r2) determination. r2 is used for indicating the variance that is explained by exogenous variables in a study (strub & cieszewski, 2012; vidyullatha & rao, 2016). the table 5 shows the results in terms of r2 value, the adjusted r2 and description of the result. if r2 and adjusted r2 are above 0.67 it is interpreted as high variance, a variance between 0.33 and 0.67 is moderate and below this is low variance (israeli, 2007). the results shows that environmental marketing variable had high variance explanation ability (82.1%) and dynamic capability had moderate ability (47.8%) in for explanation of variance in model. table 5: value of determination coefficient (r-square (r2) variable r-square (r2) adjusted r-square description entrepreneurial marketing (em) 0.821 0.752 high sustainable performance (sp) 0.478 0.446 moderate agbioforum, 23(2), 2021 | 44 shibli, saifan, yajid, khatibi and shukri. — mediating role of entrepreneurial marketing between green marketing and green management… 4.4 goodness of fit test using fit model and quality indices table 6 presented below represents the model fitness tests that have been conducted in this study for the purpose of evaluating the quality dimensions in the model. according to the results it is seen that all the model quality dimensions for the more research model work with insert described limitations and thresholds. therefore, it can be conducted that the model was a good fit, all the model provisions were satisfied, and the data supports the proposed model. table 6: goodness of fit test (fit model and quality indices) fit model and quality indices computation result probability average path coefficient (apc) 0.345 p < 0.001 average adjusted r-squared (aars) 0.599 p < 0.001 average r-squared (ars) 0.595 p < 0.001 average block vif (avif) 1.954 acceptable if less or equal to 5, ideally less than 3.3 average full collinearity vif (afvif) 2.523 acceptable if less or equal to 5, ideally less than 3.3 tenenhaus gof (gof) 0.644 small ≥ 0.1, medium ≥ 0.25, large≥ 0.36 sympson's paradox ratio (spr) 0.994 acceptable if ≥ 0.7, ideally 1 r-squared contribution ratio (rscr) 1.000 acceptable if ≥ 0.9, ideally 1 statistical suppression ratio (ssr) 0.924 acceptable if ≥ 0.7 nonlinear bivariate causality direction ratio (nlbcdr) 0.949 acceptable if ≥ 0.7 4.5 hypothesis testing hypothesis tests are presented in the form of path coefficients, effect sizes and p-values in the table 7 below. effect sizes of 0.02 and below are low, 0.15 is moderate, and 0.35 and above are high. the direct relationships between the pair’s green management and entrepreneurial marketing, green management and sustainability performance, and dynamic capabilities and entrepreneurial marketing are found to be insignificant with moderate effect sizes. the direct relationship between green marketing and entrepreneurial management is significant with an effect size of 0.547. similarly, the direct relationship between green between marketing and sustainability performance is also significant with an effect size of 0.456. furthermore, the relationship between dynamic capabilities and sustainability performance is also significant with a low effect size of 0.49. the impact of entrepreneurial management on sustainability performance has a moderate effect size of 0.244 and the relationship is significant. as for the moderation relationships all three hypotheses are found to be accepted indicating that a complete mediation intrapreneurial marketing exists between the dependent and independent variables in the model. the effect size is moderate for the mediation entrepeneurial marketing between green management and sustainability performance (0.324) whereas for the other two variables the mediation has shown high effect sizes i.e. 0.356 for the mediation of entrepeneurial marketing between green marketing and sustainability performance and 0.756 for the mediation of entrepeneurial marketing between dynamic capabilities and sustainability performance. table 7: result of hypothesis testing analysis path coefficients () p values effect sizes decision gmg -> em 0.045 0.245 0.145 not accepted gmg -> sp 0.124 0.105 0.213 not accepted gmk -> em 0.789 < 0.001 0.547 accepted gmk -> sp 0.456 < 0.001 0.456 accepted dc -> em 0.045 0.245 0.321 not accepted dc -> sp 0.124 < 0.001 0.049 accepted em -> sp 0.045 < 0.001 0.244 accepted gmg -> em -> sp 0.124 < 0.001 0.324 accepted gmk -> em -> sp 0.789 < 0.001 0.356 accepted dc -> em -> sp 0.456 < 0.001 0.756 accepted 5. discussion the better understanding of significance of sustainable development has encouraged the increased consumption of green products by the people. for this purpose, the sustainable performance of organic agricultural sectors, is effective. this research study was conducted for determining the impact of different variables including green management, green marketing, dynamic capabilities of a firm and em on the sustainable performance. for this study, a model was developed based on the abovementioned variables and was assessed by using the sem technique for the proposed hypotheses. for sample collection, different organic agricultural sectors in malaysia were selected in a time-series method. first, the results obtained from this research study showed that the green marketing has a significant impact on the sustainable performance. different scholars in the past studies have also supported this argument. according to agbioforum, 23(2), 2021 | 45 shibli, saifan, yajid, khatibi and shukri. — mediating role of entrepreneurial marketing between green marketing and green management… sahoo and bg (2020), the green marketing plays an important role in promoting the green products (verma, dixit, & singh, 2018). even many tourists are also found to be drawn towards such products. this helps in economic growth as well as sustainable development. a study was performed by bailey, mishra, and tiamiyu (2018) to understand the significance of “green scale”. this scale helped in determining the consumer behavior of for buying the green products that could be improved by the sustainable performance. second, the study showed that the relationship between green management and sustainable performance is not significant. however, many other studies have showed the opposite results. according to, jawad abbas (2020), the green management has a significant impact on the sustainable performance of a corporate. similarly according to pham, thanh, tučková, and thuy (2020), the environmental structure of a firm is highly influenced by its management which influences the sustainable performance of the firm. third, the findings of the study indicated that the dynamic capabilities of a firm have a significant impact on the sustainable performance. this is also supported by many other research studies conducted in the past. one of such study indicated that the capability of a firm in order to understand the market helps in supporting the supply chain of that firm which leads to a better sustainable performance (aslam, blome, roscoe, & azhar, 2018). according to queiroz, tallon, sharma, and coltman (2018), the dynamic capabilities of a firm should be developed with the changing environment for better sustainable performance. forth, the showed that the em has a significant relationship with the sustainable performance. such relationship is also encouraged by past studies. according to kocak and abimbola (2009), the emt has a positive impact on the sustainable performance of the firms, especially in the developing countries. according to baggio and valeri (2020), the em has a significant impact on the sustainable performance as it promotes the technical market as well in order to have a better marketing strategy to achieve the desired goals. fifth, the results obtained from the study showed that the green management, green marketing, and the dynamic capabilities, all have a significant impact on the sustainable performance when em is implemented. such findings have been promoted by different past studies as well. according to various academia, for a better sustainable performance, several factors must be kept in mind. these factors include green management, green marketing, dynamic capabilities of a firm and entrepreneurial marketing (hong et al., 2018). the “contingency theory of entrepreneurial marketing” plays a vital role in this regard. according to this theory, the leader or manager should be able to change the strategies for the best interest of the firm depending on the need of the hour. thus, to improve the sustainable performance of the firm, this theory motivates the leaders or the managers to change their strategies accordingly (khan et al., 2020). 6. conclusion this research study helped in developing as well as assessing a model that shows the impact of green marketing, green management, dynamic capabilities of a firm and entrepreneurial marketing on sustainable performance. this developed model was examined by considering the samples of organic agricultural sectors in malaysia. the results obtained from this research study showed that the green marketing support the sustainable performance whereas, the relationship between the green management and sustainable performance is not significant. however, the implementation of entrepreneurial marketing is also found to have a significant impact on the sustainable performance. the findings of this research study also showed that the dynamic capabilities of a firm have strong relationship with the sustainable performance, but such capabilities are found to have no significant relationship with the em. thus, from the obtained results of this research study it was concluded that the green management shows a significant impact on the sustainable performance of the sector when em is implemented. similarly, the green marketing also shows a significant impact on the sustainable performance of the sector when em is implemented and the strong relationship between dynamic capabilities of the firm and the sustainable performance is also observed due to the implementation of em. the findings of the research study have played a significant role in future research as well as implications for the development of organic agricultural sectors. 7. limitations and future research indications the results obtained from this research study showed that the green management has no significant impact on the sustainable performance directly. however, this study was only performed for certain number of agricultural sectors in malaysia. only some of the characteristics of these sectors are determined for this purpose. therefore, the future research study could be conducted by considering a waste area of agricultural field in malaysia. to improve the sustainable performance in the organic agricultural sectors of malaysia, only four different variables are considered for this research study. different dimensions as well as indicators for these variables are considered were considered by the researcher to determine their impact on the sustainable performance. however, many other variables could also be determined for improving the sustainable performance. different methods should be considered for improving the sustainable performance by taking into count many other central variables. this research study only provides the results for determining the impact of certain variables on the sustainable performance in organic agricultural sector in malaysia. however, the cross-sectional studies should also be conducted that would help in determining the impact of these variables as well as other variables on the sustainable performance of the agricultural sectors not only in developing countries but also in other developed countries around the world. agbioforum, 23(2), 2021 | 46 shibli, saifan, yajid, khatibi and shukri. — mediating role of entrepreneurial marketing between green marketing and green management… 8. implications the consumption of green products in increasing day by day in the modern world to maintain sustainable development in the world. this led to the introduction of many organic agricultural sectors around the globe. such sectors promote the use of such products. for this purpose, the managers working at 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agricultural economics, oklahoma state university, stillwater, oklahoma, usa email: aleks.schaefer@okstate.edu robert j. myers department of agricultural, food and resource economics, michigan state university, east lansing, michigan, usa. stanley r. johnson national center for food and agricultural policy, washington, d.c., usa. michael d. helmar national center for food and agricultural policy, washington, d.c., usa. tony radich usda office of the chief economist, office of energy and environmental policy, washington, d.c., usa. this paper uses econometric modeling to assess how relative price relationships in the international oilseed system, including those for soy, canola, palm, and sunflower oil, have changed over time. we find that structural change in the international oilseed price system aligns strongly with the timing of mandates on the labeling of trans fats and international policy efforts to promote biodiesel production. our results indicate that— following an initial adjustment period—price premiums for sunseed oil and canola oil increased by 28% and 4%, respectively, relative to soy oil. we also find that—prior to the boom in biodiesel production and trans-fat labeling requirements—no long-run co-integrating relationship existed between palm oil prices and those for other oilseeds. however, in the wake of these changes, palm oil prices are now strongly co-integrated with other oilseed prices. key words: oilseeds, relative prices, biodiesel policy, trans fat labeling jel codes : q42, q48, q11 1. introduction regulations targeting downstream food and transportation markets can have substantial implications for the economic returns to upstream oilseed producers. production subsidies and mandatory blending requirements for biodiesel and ethanol into transportation fuels have generated a substantial boost in the global demand for biofuel over the last twenty years. these programs originated under the 2001 eu biofuels directive and the 2005 u.s. energy policy act. oilseeds, including soy canola, palm, and sunflower oil, represent major feedstocks for biodiesel production. the u.s. biodiesel industry is dominated by soy, but sunflower oil and other feedstocks also play key roles. in the eu, canola oil is the major biodiesel feedstock but palm oil from malaysia, soy, and sunflower have also been used. in 2019, the eu determined that palm oil is not environmentally sustainable and banned biodiesel made from palm oil to be counted towards the required uses. going forward, this has effectively eliminated palm oilbased biodiesel from eu consumption, blending, and therefore, from production. alongside the expansion of biofuels, health concerns have led legislators across the world to regulate foods containing trans fats. this began in march 2003, when denmark became the first country to ban packaged foods containing trans fats. in the u.s., the food and drug administration (fda) began requiring food manufacturers to provide information about trans fats on nutrition fact panels in 2006. these regulations have substantial implications for oilseed relative prices—soy and canola oil have high trans-fat content, whereas sunflower seed oil and palm oil do not contain any trans fats. in this paper, we focus on an under-researched aspect of the potential effects of these regulatory changes—we seek to quantify their impact on relative price relationships among oilseed feedstocks. understanding policy-induced changes in relative prices is critical because it is relative prices that drive the incentive to shift production between different crops, which has implications for land use and greenhouse gas emissions, not to mention the welfare of farmers and other market participants. this is of consequence because the oilseeds we study are grown on more than 200 million hectares of land worldwide. certain conditions must be satisfied for regulatory changes to affect international price relatives. first, there is existing evidence of unit root processes in international oilseed prices. thus, analysis of policy effects on longrun relative prices requires co-integration among oilseed prices before and after global regulatory changes. second, the regulation must have induced a permanent change in this co-integrating relationship. here, we employ an empirical analysis to test for each of these conditions in turn. our analysis contributes to the economic research on the effects of biofuel growth on agricultural and food price relationships (ciaian, 2011; myers, johnson, helmar, & baumes, 2014; wetzstein & wetzstein, 2011; zhang, lohr, escalante, & wetzstein, 2010; zilberman, hochman, rajagopal, sexton, & timilsina, 2013). most of this research finds evidence that the growth in biofuels has enhanced linkages between energy and agricultural prices, and that increased demand for biofuels increased the price of biofuel feedstocks, at least in the short run. drabik, de gorter, and timilsina (2014) argue that the mailto:aleks.schaefer@okstate.edu agbioforum, 23(1), 2021 | 73 schaefer et al.—how have oilseed relative price relationships changed over time? jointness between oil and meal in oilseed crushing diminishes the impact of biodiesel growth on oilseed feedstock prices, but that the prices of higher oil content feedstocks, such as canola and sunflower, should increase relative to soy, which has a lower oil content. cui and martin (2017) argue that biodiesel expansion will lead to substitution of palm oil for soy oil, thus increasing the relative price of palm oil. however, both papers use a stylized computational model calibrated to a few data points. here we investigate whether an econometric approach supports or contradicts these conclusions. there is some existing econometric evidence on biodiesel feedstock price relationships (hassouneh, serra, goodwin, & gil, 2012; in & inder, 1997), but these studies focus on cointegration and longrun price relationships rather than structural changes in relative feedstock prices. our analysis also relates to research on the impacts of mandatory nutrition labeling policies. much of this research relates to the impacts of these labels on consumer behavior. for example, teisl, bockstael, and levy (2001) use experimental methods to analyze the impacts of nutrition labeling claims on supermarket shelves. kalaitzandonakes, marks, and vickner (2004) use scanner data to evaluate consumers' purchasing decisions in the context of mandatory labeling rules for genetically engineered (ge) foods. perhaps most relevant in this line of literature for our purposes, carter and schaefer (2019) study the impacts of mandatory ge labeling on the relative prices of ge and non-ge sugar feedstocks. they find that the labeling policies induced a 13% price discount for ge sugar and a premium of about 1% for non-ge sugar. in our context, the ge to non-ge feedstock distinction is comparable to oilseeds containing trans fats versus oilseeds that do not contain trans fats. we find that the timing of structural change in the international oilseeds system aligns strongly with the timing of mandates on the labeling of trans fats and international policy efforts to promote biodiesel production. our price impact results provide empirical support for the conclusions in drabik et al. (2014) and are consistent with the upstream impacts of mandatory labeling discussed in carter and schaefer (2019). we find that—following an initial adjustment period— international biodiesel expansion and regulatory changes has induced a 28% increase in the price premium for sunseed oil and a 4% increase in the premium for canola oil relative to soy oil. our findings also lend insights to the discussion in cui and martin (2017). we find that— prior to the boom in biodiesel production and trans-fat labeling requirements—no long-run co-integrating relationship existed between palm oil prices and those for other oilseeds. however, in the wake of these changes, palm oil prices are now strongly co-integrated with other oilseed prices. 2. background this section details major policy efforts affecting the international oilseed price system. in section 2.1, we provide a brief overview of the international biodiesel promotion. section 2.2 discusses legislation regarding the mandatory labeling of trans fats. figure 1 plots global production of oilseeds. across the world, there are approximately 124.9 million hectares planted in soybeans (35.7 million hectares in the u.s.), 37.6 million hectares planted in canola (0.8 million hectares in the u.s.), 26.7 million hectares planted in sunflower (0.5 million in the u.s.) and 18.9 million hectares planted in palm. figure 1: global oilseed production source: data obtained from faostat. 2.1. international biodiesel promotion world production and use of biodiesel have risen dramatically in the last twenty-five years. initial optimism about the environmental benefits of reducing fossil fuel use, reducing energy dependence on imports, and enhancing farmer incomes has given way to pessimism surrounding the diversion of valuable resources away from food production, increased food prices, and food price volatility, and a reassessment of whether biofuels can really provide environmental benefits and mitigate climate change (carter, rausser, & smith, 2017; cui, lapan, moschini, & cooper, 2011; de gorter & just, 2009a, 2009b; lade, lin lawell, & smith, 2018; runge & senauer, 2007). the two largest international producers are the united states and the european union. in the u.s., the growth in biodiesel production began with the energy policy act of 1992, which initiated biofuel subsidies and provided guidance for federal programs designed to encourage increased use. however, it was not until the energy agbioforum, 23(1), 2021 | 74 schaefer et al.—how have oilseed relative price relationships changed over time? policy act of 2005 that biofuels really took off. the 2005 act increased subsidy levels and implemented the renewable fuel standard, which required the blending of ethanol and biodiesel into transportation fuels, providing a huge boost to biofuel demand. subsequent legislation has continued to encourage biodiesel production and use in the u.s., which has grown steadily (figure 2). in 2019, the u.s. produced over 5.6 million metric tonnes of biodiesel (b100) from 91 biodiesel plants nationwide. production occurs in 38 u.s. states, and is heavily concentrated in iowa, missouri, and texas (eia, 2020). figure 2: u.s. and eu biodiesel production source: u.s. biodiesel production data obtained from the u.s. energy information administration “monthly biodiesel production report'', converted from barrels to metric tons using a conversion factor of 0.1364. eu biodiesel production data obtained from eu biofuels annals (various years) gain reports provided by the usda foreign agricultural service. in the eu, growth in biodiesel was initially incentivized through the biofuels directive of 2001, which required 5.75% of all transport fuels to be replaced by biofuels by the end of 2010. the 2009 renewable energy directive provided additional support by raising binding targets to 20% renewables for total energy use and 10% for transportation fuel by 2020. combined with subsidies and import protection, these policies have led to rapid increases in eu biodiesel production and use. in 2019, the eu produced approximately 11 million metric tons of biodiesel in 120 biodiesel production plants, concentrated primarily in germany, italy, austria, france, and sweden. crushing margins differ among oilseed feedstocks (table 1). soybean feedstock produces approximately 19% oil content (versus 79% meal content). crush margins for sunflower and canola are much higher. canola oil content is about 42% (with meal content 58%), and sunflower oil content is approximately 42% (with 45% meal). palm fruit oil content ranges as high as 56%. we note that biodiesel made from different vegetable oil feedstocks are not perfect substitutes because of different cold filter plugging points (cfpp). table 1: oilseed crush margins and trans fat content crush margin trans fat oil type oil meal content (g/tbsp) soy 0.19 0.79 0.1 canola 0.42 0.58 0.2 sunseed 0.42 0.45 0.0 palm 0.56 0.40 0.0 2.2. mandatory trans fat labeling in the late 1990s, academic research began into the adverse health effects of trans fatty acids (ascherio, katan, zock, stampfer, & willett, 1999; ascherio & willett, 1997). according to the american heart association, trans fats raise negative cholesterol levels and increase risks for heart disease, stroke, and type-2 diabetes (american heart association, 2017). as a result, legislators across the world instituted mandatory labeling procedures for foods containing trans fats. in march 2003, denmark became the first country to ban packaged foods containing trans fats (smith, 2018). similar legislation has since been adopted in many eu countries. later in 2003, the u.s. passed a regulation requiring food manufacturers to provide information about trans fats on nutrition fact panels (21 cfr part 101). this mandate took effect on january 1, 2006. the state of california later banned to use of trans fats in restaurants in july 2008. these regulations have substantial implications for oilseed relative prices because the content of trans fatty acids differs across oilseeds (table 1). soy and canola oil have high trans-fat content at 0.1 and 0.2 grams per tablespoon, respectively (usda, 2021). in contrast, sunflower seed oil and palm oil do not contain any trans fats. as a result of the regulatory shift away from trans fats, there was a significant reduction in demand for human consumption of soybean oil, as it became increasingly viewed as unhealthy and was avoided by food manufacturers. this has been estimated by the industry to be a 20% reduction in soybean oil market share by 2006 when the trans-fat labeling went into effect in the u.s. (market view insight, 2017). this directly shifted oil demand away for soybean oil and toward sunflower oils (and to a much lesser degree palm oil). 3. methodology we employ a three-step empirical analysis (outlined in figure 3) to assess how relative price relationships in the international oilseed system have changed over time. first, we apply bai-perron structural break tests to univariate models of price differentials between several pairs of oilseed prices (bai & perron, 2003). the baiperron approach allows simultaneous estimation of the number of endogenously determined structural breaks and identify the timing of breaks in a time series sample. the goal is to estimate empirically the number and agbioforum, 23(1), 2021 | 75 schaefer et al.—how have oilseed relative price relationships changed over time? location of structural breaks in relative oilseed prices. the structural breaks identified coincide well with the timing of major policy innovations, suggesting these policy changes have altered relative oilseed price relationships. second, we conduct a series of bivariate cointegration analyses to identify—for each regime—the nature, existence, and stability of the underlying long-run equilibrium relationships. finally, the structural break tests and cointegration results are combined to provide empirical estimates of the extent to which biofuel policy has shifted relative price differentials between key oilseed prices. figure 3: three-step empirical analysis our analysis uses international prices for four oilseeds: (1) sunflower oil, (2) canola oil, (3) palm oil, and (4) soy oil. panel (a) of figure 4 shows these prices in natural logarithmic form. the geographic locus of each price is shown in panel (c) of figure 4. sunflower oil prices are fob minneapolis, canola oil prices are fob ex-mill in rotterdam, palm oil prices are fob malaysia, and soy oil prices are from decatur and are an average wholesale tank price. all prices are in u.s. dollars per metric ton, converted at the appropriate exchange rate when necessary. prices are monthly from january 1990 through november 2019 (357 total observations), and the source for all the price data is the foreign agricultural service of the united states department of agriculture. figure 4: international oilseed prices, 1990–2019 source: price data are obtained from the usda foreign agricultural service. for our main analysis, we specify price relatives as: (𝑦𝑡 = ln (𝑃𝑖𝑡\𝑃𝑗𝑡)………………………………….(1) where 𝑃𝑖𝑡 is the price of oilseed i at time t. this relative price measure is the price premium (discount if less than one) that oilseed i has relative to oilseed j in each period. this measure of relative price was chosen because it is a natural and intuitive measure of the way in which policy treatments have altered price relatives among oilseed prices and is consistent with previous work on the impacts of policy changes on relative price relationships (carter & smith, 2007; mckendree, saitone, & schaefer, 2021). other measures of price relatives could also be used. for example, one could take the simple difference in prices (𝑃𝑖𝑡 − 𝑃𝑗𝑡) or the price ratio without natural logarithmic transformation. we explore alternative constructions of the price relative in appendix a, and results are consistent with those from the log price relatives. panel (b) of figure 4 depicts the price relatives computed using equation (1) using soy oil as the denominator. soy oil is chosen as the denominator because it is the most important biodiesel feedstock in the u.s. and is used extensively in the eu as well. sunflower-soy oil price relatives have the distinct appearance of two separate regimes, with a break somewhere around the beginning of 2005. in the earlier regime, the sunflower premium appears smaller while in the later regime it appears to undergo a substantial jump, with sunflower oil prices rising relative to soy oil. potential breaks in the canolasoy and palm-soy oil price relatives are less obvious from visual inspection of the figure. 4. structural break tests using the price relatives depicted in figure 4(b), we first ask whether policy-induced thresholds in the growth in biodiesel use and trans-fat labeling mandates coincide with the existence and timing of long-run changes in international oilseed relative price relationships. an inherent issue, of course, is that it is not clear when policy treatments occur. obvious candidates are the date of major policy changes, such as the u.s. energy policy act of 2005 and the imposition of trans fat labeling mandates on january 1, 2006. however, it is logical that some of the impacts of major legislative actions were anticipated prior to implementation and therefore may have at least some of their impact prior to enactment. it is also likely that some adjustment to legislative changes may be delayed due to adjustment costs and rigidities, so that there is a dynamic response to some of the policy changes that have occurred. particularly early on, implementation can lag because of the time required to build out processing and blending capacity. we account for these timing issues in two ways. first, we include lagged price differentials as explanatory variables in our structural break regressions to allow for a dynamic response (slow adjustment) to shifts in the policy treatment variables. second, we undertake tests agbioforum, 23(1), 2021 | 76 schaefer et al.—how have oilseed relative price relationships changed over time? for multiple structural breaks at unknown break points to allow the data to identify whether and when key shifts in the relative price relationships have occurred (bai & perron, 2003). we compare the identified break points with legislative evidence on biofuels policy to determine whether they can be interpreted as policy treatments. the structural break analyses are based on estimating econometric models that take the general form: 𝑦𝑡 = α + 𝐗t𝛽 + 𝜖𝑡 …………………………………(2) where 𝑦𝑡 is the relative price differential and 𝑿𝑡 is the vector of lagged price differentials? the optimal lag order is determined according to the hannan-quinn information criterion (hqic) (hannan & quinn, 1979). table 2 reports results of the structural break tests. the tests identify two structural breaks in the sunseed-soy price relative—the earlier occurring in august 1994 and the latter in may 2004. the timing of both breaks aligns well with events affecting international oilseed markets. the earlier break follows shortly after the signing of the uruguay round agreement in april 1994 in which some 120 countries agreed to significant changes in agricultural trade policies, including domestic support, tariffs and import quotas. while oilseeds had generally lower policy impacts from grains, commodities like sunflower seed and rapeseed are grown in areas that also are major grain (wheat and barley, primarily) producing areas in the eu and canada. cereal’s policies and agencies were affected to a significant extent by these gatt negotiations. the trade liberalization coming from this agreement was phased in over several years following signing. the wto came out of these agreements on january 1, 1995. the second break occurs a few months after the fda passed rules requiring food manufacturers to list trans-fat on the nutrition facts panels. this is also a few months before the promulgation of the 2005 energy policy act in the united states. the canola-soy price relative also identifies two structural breaks—in october 1990 and june 2000. as with the sunseed-soy price relative, the earlier break in the canola-soy relative price occurs prior to the establishment of the wto. the latter break aligns strongly with the inception of the 2001 biofuels directive in the eu. this is intuitive given that canola is the primary feedstock used for biodiesel production in the eu. the model does not identify a structural break in the palm-soy price relative. there are two potential explanations for this. the finding could indicate there has not been a permanent change in the relationship between palm and soy oil prices over the period of observation. alternatively, it could suggest that—even if the relationship has changed—the relationship was sufficiently noisy over one period that the model is not able to separate that regime for others. the co-integration analysis in the next section sheds light on this result. table 2: tests for structural break in relative prices (soy base) price series lag specification break number break date statistic pvalue sunseedsoy 2 (1) 2004m5*** 20.45 0.00 (2) 1994m8*** 13.72 0.01 (3) 2014m7 6.13 0.23 canolasoy 1 (1) 2000m6** 10.55 0.03 (2) 1990m10*** 16.24 0.00 (3) 2006m10 7.29 0.14 palm-soy 1 (1) 1994m4 5.846 0.25 ***p<0.01, **p<0.05, *p<0.1 focusing on the structural breaks for the sunseed-soy and canola-soy price relatives (and excluding periods prior to the establishment of the wto), our structural break analysis identifies three main regimes for oilseed price relatives. the first regime runs from january 1995 to june 2000. this regime runs prior to trans-fat labeling requirements and the large-scale expansion in global biodiesel production. the second regime runs from july 2000 to may 2004. in this period, trans fat labeling was being considered in many countries and biodiesel production was in its early stages. the third regime runs from june 2004 to the end of the sample period. we find it telling that no structural breaks occur in oilseed price relatives from 2005 onwards—the primary era of biofuels expansion, and after trans-fat labeling requirements had entered u.s. law. if the cointegration analysis in the next section suggests oilseed prices moved together in long-run equilibrium during this period, we believe it appropriate to coin this period the “modern regulatory era” for the purposes of the impact analysis. 5. cointegration analysis having identified three regimes in oilseed price relatives, which align with international regulatory changes affecting oilseeds, we now evaluate the stationarity and co-integration properties of feedstock prices in each of the three regimes. successful identification of the policy impacts requires the existence of a mean-stable relationship in oilseed price relationships prior to and after trans-fat labeling mandates and international biodiesel expansion (carter & smith, 2007). two log price series are co-integrated with a co-integrating vector (1,-1) if 𝑦𝑡 is stationary. we use the augmented dickeyfuller (adf) test (dickey & fuller, 1979) to determine if unit roots are present in our oilseed price relatives under the three regimes. as above, lag length for each unit root test is determined according to the hqic. results for each of these tests are reported in table 3. in regime 1, we reject a unit root in the relative price for sunseed-soy at the 5% level. we conclude log sunseed agbioforum, 23(1), 2021 | 77 schaefer et al.—how have oilseed relative price relationships changed over time? and soy oil prices experienced a mean-stable relationship—and are therefore co-integrated with cointegrating vector (1,-1)—between january 1995 and june 2000. similarly, the adf test also rejects nonstationarity in the canola-soy price relative at the 10% level. in contrast, the adf test suggests the palm-soy price relative was non-stationary (i.e., non-mean-stable) in this period. table 3: multi-regime price relative co-integration tests regime 1 regime 2 regime 3 price relative (jan-95– jun-00) (jul-00– may-04) (jun-04– end) sunseed-soy -2.88** -2.12 -4.27*** (-2.60) (-2.60) (-2.57) canola-soy -2.67* -1.80 -3.53*** (-2.60) (-2.60) (-2.57) palm-soy -2.07 -1.93 -3.61*** (-2.60) (2.02) (-2.57) ***p<0.01, **p<0.05, *p<0.1 10% critical value in parentheses. lag specification determined according to hqic. co-integration tests for regime 2 (july 2000–may 2004) in table 3 fail to reject unit root processes for all price relative relationships. in other words, we observe no mean-stable relationships in oilseed prices in this period. this is likely the result of a combination of two factors. first, in the early stages of trans fat labeling changes and biodiesel production, oilseed price relationships were likely undergoing a long-run adjustment process that would not occur instantly (illustrated in figure 5). additionally, the test is likely of low statistical power because regimes 2 includes less than four years of data. figure 5: illustration of cointegration regimes results for regime 3 in table 3 tell a very different story from that for regime 2. adf tests suggest at the 1% level that the sunseed-soy, canola-soy, and palm-soy price relatives are mean-stable from june 2004 to the end of the sample period (november 2019). these findings suggest that any short-term adjustments experienced during regime 2 were resolved by june 2004, and prices had reached a new long-run co-integrating relationship and therefore a shift in the mean price differentials. 1 this effect is short-run because it does not take account of the dynamic adjustment (lagged dependent variables). the co-integration results for regimes 1 through 3 are used to conduct the price impact analysis in section 6. we use the cointegration results to define the set of prices to include in the price impact analysis and the “benchmark'' and “impact'' periods with which to estimate the price impact. because our results indicate that palm oil was not integrated with other international oilseed prices until regime 3, we exclude it from the price impact analysis. for the purposes of the impact analysis, we define regime 1 as the “pre-policy'' period against which to measure the impacts of trans fat labeling mandates and biodiesel expansion. to be conservative, we interpret regime 2 in which we reject a mean-stable relationship for all price relatives as an “adjustment'' period as producers and industries adapted to trans-fat labeling and biofuel production. thus, we do not rely on price relationships in this period for the purposes of the impact analysis. because we believe price relationships in regime 3 likely represent an accurate and stable representation of the long-run co-integrating processes in the modern regulatory era, we measure the impacts of trans fat labeling and biodiesel expansion on relative oilseed prices by comparing actual prices in this period with those predicted by the historical relationship measured under regime 1. 6. price impact analysis in this section, we estimate the structural change in sunseed-soy and canola-soy price relatives associated with trans-fat labeling mandates and the expansion in biodiesel production. for each price relative, we estimate the following model: 𝑦𝑡 = α1 + α2r2t + α3r3t + 𝐗t𝛽 + 𝜖𝑡……………..(3) where 𝑦𝑡 is the price relative for either sunseed or canola oil, expressed as in equation 1, 𝑿𝒕𝛽 is a covariates model, and treatment variables 𝑅2𝑡 and 𝑅3𝑡 are indicators that take values one during regimes 2 and 3, respectively, and are otherwise equal to zero. as suggested by the hqic, we include in 𝑿𝑡 two lags of the dependent variable for the sunseed-soy model and one lag of the dependent variable in the canola-soy model. table 4 reports the results of estimating equation (3). referring first to column (1), we see that the regime 3 treatment effect is positive and statistically significant at 1%, indicating a short-run effect of trans fat labeling and biodiesel expansion was to increase the sunseed-soy price relative by 6.8% 1 similarly, referring to column (2), we see that the regime 3 treatment effect is also positive and statistically significant at 1%, indicating a 2.1% shortrun increase in the canola-soy price relative. we note that the treatment effects on 𝑅3 in table 4 are short-run estimates that under-estimate the long-run agbioforum, 23(1), 2021 | 78 schaefer et al.—how have oilseed relative price relationships changed over time? effect generated by the dynamic adjustment that occurs over time. to estimate these long-run effects, we compute the unconditional means of the relative price with and without the policy treatment effects. panel (a) of figure 6 shows the dynamic adjustment in relative prices to the 𝑅3 treatment. note that we derive confidence intervals for this dynamic adjustment using a bayesian bootstrapping procedure, where we make random draws from the posterior distribution of the 𝑅3 short-term treatment effect reported in table 4. panel (b) of figure 6 reports the unconditional means of relative prices with and without the policy treatment effects. these results suggest that the modern regulatory regime has generated a 27.86% long-term increase in the sunseed price premium over soy. similarly, the policy treatment has generated a 4.2% long-term increase in the canola price premium over soy. in appendices a and b, we assess the sensitivity of these results to alternative specifications of the relative price and to expansion of the price impact model to multi-variate analysis. these analyses generally support the main results; however, we note that the statistical significance of the canola-soy price impact is sensitive to specification.2 table 3: multi-regime price relative co-integration tests (1) (2) variables sunseed-soy canola-soy dep var (l1) 1.014*** 0.862*** (0.113) (0.064) dep var (l2) -0.149 (0.097) regime 2 0.027*** 0.014 (0.010) (0.009) regime 3 0.068*** 0.021*** (0.015) (0.007) constant 0.006 0.008 (0.004) (0.006) observations 294 295 r-squared 0.94 0.80 robust standard errors in parentheses ***p<0.01, **p<0.05, *p<0.1 figure 6: policy impact summary 7. conclusion 2 one potential explanation of this is the use of rotterdam canola prices, as opposed to, say, canadian canola prices. it is possible that transportation prices for overseas passage increases the noise in this relationship. this paper uses econometric modeling to assess how relative price relationships in the international oilseed system, including those for soy, canola, palm, and sunflower oil, have changed over time. we find that structural change in the international oilseed price system aligns strongly with the timing of mandates on the labeling of trans fats and international policy efforts to promote biodiesel production. our results indicate that—following an initial adjustment period—price premiums for sunseed oil increased by 28% relative to soy oil. this is consistent with the demand for sunflower oil shifting upwards more rapidly than the demand for soy oil, primarily due to the substitution away from soy oil for human consumption due to the presence of trans fats. this result was found to be quite robust to alternative model specifications. we also estimate a 4% increase in the premium for canola oil relative to soy oil. this suggests that the demand for canola oil increased relatively faster than the demand for soy, putting upward pressure on the price premium. however, the multi-variate analysis in appendix b suggests this result is sensitive to model specification and requires further analysis. finally, we find that—prior to the boom in biodiesel production and trans-fat labeling requirements—no long-run cointegrating relationship existed between palm oil prices and those for other oilseeds. however, in the wake of these changes, palm oil prices are now strongly cointegrated with other oilseed prices. this suggests that palm oil is now a more competitive product and viewed more directly as a substitute for sunflower, canola, and soy oil. a question for future research is whether this cointegrating relationship will persist going forward considering the 2019 prohibition of palm oil in eu blending requirements. acknowledgment: this work was supported by the united states department of agriculture under award 58-0111-19-006. the findings and conclusions in this publication are those of the author(s) and should not be construed to represent any official usda or u.s. 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(2018). trans fat regulation. retrieved from https://www.news-medical.net/health/transfat-regulation.aspx https://doi.org/10.1093/ajcn/66.4.1006s https://doi.org/10.1002/jae.659 https://doi.org/10.1093/ajae/aaw010 https://doi.org/10.1093/ajae/aay066 https://doi.org/10.1162/rest.89.3.522 https://doi.org/10.1016/j.reseneeco.2010.07.004 https://doi.org/10.1016/j.reseneeco.2010.07.004 https://doi.org/10.1093/ajae/aar053 https://doi.org/10.1016/j.eneco.2017.04.010 https://doi.org/10.1016/j.eneco.2017.04.010 https://doi.org/10.1111/j.1467-8276.2009.01275.x https://doi.org/10.1111/j.1467-8276.2009.01275.x https://doi.org/10.1111/j.1467-8276.2008.01190.x https://doi.org/10.1111/j.1467-8276.2008.01190.x https://doi.org/10.1080/01621459.1979.10482531 https://doi.org/10.1080/01621459.1979.10482531 https://doi.org/10.1016/j.eneco.2014.03.024 https://doi.org/10.1016/j.eneco.2014.03.024 https://www.eia.gov/biofuels/biodiesel/production/ https://www.eia.gov/biofuels/biodiesel/production/ https://doi.org/10.1111/j.2517-6161.1979.tb01072.x https://doi.org/10.1111/j.2517-6161.1979.tb01072.x https://doi.org/10.1016/j.eneco.2012.06.027 https://doi.org/10.1016/j.eneco.2012.06.027 https://doi.org/10.1111/1467-8489.00024 https://doi.org/10.1111/j.0002-9092.2004.00671.x https://doi.org/10.1111/j.0002-9092.2004.00671.x https://doi.org/10.1093/ajae/aax097 https://marketviewdb.centrec.com/uploads/briefs/sbo%20sib%20v7%200907.pdf https://marketviewdb.centrec.com/uploads/briefs/sbo%20sib%20v7%200907.pdf https://doi.org/10.1111/ajae.12159 https://doi.org/10.1093/ajae/aau003 https://www.jstor.org/stable/20032348 https://www.news-medical.net/health/trans-fat-regulation.aspx https://www.news-medical.net/health/trans-fat-regulation.aspx agbioforum, 23(1), 2021 | 80 schaefer et al.—how have oilseed relative price relationships changed over time? teisl, m. f., bockstael, n. e., & levy, a. 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(2013). the impact of biofuels on commodity food prices: assessment of findings. american journal of agricultural economics, 95(2), 275-281. doi:https://doi.org/10.1093/ajae/aas037 appendix a: alternative relative price specifications in this appendix, we explore whether the results presented in the main body of this manuscript are robust to alternative specifications of the price relatives. as specified in equation (1), the construction of relative prices used for the baseline analyses is the natural log of the price ratio, where the numerator price is alternatively specified as sunseed oil, canola oil, or palm oil, and the denominator price is soy oil. here, we consider two alternative constructions of relative prices: (1) we re-do the analysis using the difference in price levels: 𝑃𝑖,𝑡 − 𝑃𝑠𝑜𝑦,𝑡 , for 𝑖 ∈ {sunseed, canola, palm}, and (2) we consider simple price ratios (without natural logarithmic transformation). figure a1 reports the supremum wald statistics generated by re-running the structural break analysis in equation (2). note for simplicity, we re-run this analysis including a single lagged dependent variable for each price series and search for a single break in the period jan-1995–nov-2019. results of this analysis are qualitatively like the structural break results reported in table 2 in the main body of the manuscript. panel (a) of figure a1 reports supermum wald statistics for candidate breakpoints under the price difference specification. according to this analysis, the sunseed-soy price difference indicates a structural break at june20004 (statistically significant at the 5% level). this is identical to the first break identified in the sunseed-soy price relative in table 2. similarly, the canola-soy price difference indicates a structural break just one month earlier, in may-2004 (statistically significant at 1% level). as with the baseline analysis, we do not identify a statistically significant break in the palm-soy price difference over the sample period. structural break results under the price ratio specification in panel (b) of figure a1 are also generally consistent with the baseline model. the sunseed-soy analysis indicates a break at july-2004 (statistically significant at the 1% level), just one month after the first sunseed-soy break in the baseline analysis. the canola-soy analysis indicates a break at july-2000 (statistically significant at the 10% level), which is identical to the first break found in the canola-soy price relative in the baseline analysis. interestingly, this specification also yields a break for the palm-soy equation in april-1999 (statistically significant at the 5% level). however, as discussed below, because we fail to identify a co-integrating relationship between palm and soy oil, we exclude it from the price impact analysis. figure a1: structural break results—model robustness table a1 reports the p-value results for the multi-regime cointegration tests for the alternative relative price specifications. we evaluate cointegration over the three regimes identified in the main body of the manuscript (jan-95–jun-00; jul-00–may-04; and jun04–end), using a single-lag specification. findings are like those for our primary model in table 3. table a1: multi-regime co-integration tests—model robustness specification series regime 1 regime 2 regime 3 p values differences sunseed-soy 0.02 0.44 0.00 canola-soy 0.07 0.18 0.00 palm-soy 0.35 0.89 0.00 ratios sunseed-soy 0.05 0.36 0.00 canola-soy 0.17 0.13 0.01 palm-soy 0.44 0.28 0.01 https://doi.org/10.1111/0002-9092.00142 https://fdc.nal.usda.gov/ https://doi.org/10.1016/j.enpol.2011.04.048 https://doi.org/10.1016/j.enpol.2011.04.048 https://doi.org/10.1016/j.enpol.2009.09.034 https://doi.org/10.1016/j.enpol.2009.09.034 https://doi.org/10.1093/ajae/aas037 agbioforum, 23(1), 2021 | 81 schaefer et al.—how have oilseed relative price relationships changed over time? we turn first to the co-integration results in the price difference specification in table a1. results are effectively unchanged from the primary specification. in regime 1, we reject non-stationarity for the sunseed-soy price difference (at the 5% level) and the canola-soy price difference (at the 10% level); however, we fail to reject non-stationarity for the palm-soy price. in regime 2, we fail to reject unit root processes for all price differences, indicating a period of adjustment or a low power due to sample size limits. in regime 3, all prices are co-integrated at the 1% level. we repeat the price impact estimation analysis for the sunseed-soy and canola-soy price relatives under the price differences and price ratios constructions as in equation (3), using a single-lag structure for all models. table a2 reports price impact results. as shown in the table, the coefficient on 𝑅3 is positive and statistically significant in all specifications, indicating that biodiesel expansion increased sunseed-soy and canola-soy relative prices. table a2: relative price impact model—robustness (1) (2) (3) (4) variables sunseedsoy diff. canolasoy diff. sunseedsoy ratio canolasoy ratio dep var (l1) 0.916*** 0.854*** 0.864*** 0.831*** (0.026) (0.0529) (0.0518) (0.0935) regime 2 9.301* 4.921 0.0339** 00.018 (5.143) (3.916) (0.0169) (0.0117) regime 3 46.66*** 19.64*** 0.0959*** 0.0281** (13.16) (5.743) (0.0304) (0.0114) constant 1.666 4.826* 0.142*** 0.180* (2.049) (2.621) (0.0542) (0.101) observations 296 296 296 296 r-squared 0.956 0.858 0.905 0.757 robust standard errors in parentheses. ***p<0.01, **p<0.05, *p<0.1 using the coefficients in table a2, we generate long-run price impact estimates (and corresponding confidence intervals) as in our primary specification in section 6. the results—reported in figure a2—are consistent with those generated by our primary model. referring to the price difference results in panels (a) and (b) of figure a2, we see that the modern regulatory era has increased the difference in prices by approximately $430 per metric ton. the long-run impact for the canola-soy price difference is approximately $95 per metric ton. according to the price ratio specifications, shown in panels (c) and (d) of figure a2, each metric ton of sunseed oil trades for an additional 0.45 metric tons of soy oil. similarly, each metric ton of canola oil trades for an additional 0.06 metric tons of soy oil. appendix b: multivariate price impact analysis in this appendix, we construct a multivariate price impact model comprising the co-integrated oilseed figure a2: policy impact summary—model robustness system to assess the sensitivity of our univariate results. strictly interpreted, the cointegration results in table 3 imply two long-run co-integrating relationships among sunseed, canola, and soy oil prices of order ci(1,0,-1) and ci(0,1,-1), respectively. we construct a vector error correction (vec) model for the set of co-integrated oilseed prices to estimate the pre-policy system equilibrium relationship. we then compare actual prices in the wake of trans fat labeling and biofuels legislation with the counterfactual prices implied by projecting the pre-policy co-integrating relationship to assess the impact of regulatory reform on oilseed price relatives. lag length for the vec model is specified prescribed by the hannan-quinn information criterion. thus, we estimate the following vec model over the pre-policy period from january 1995 to june 2000 (engle and granger, 1987): (4) δ𝑃𝑡 𝑠𝑢𝑛 = 𝛼𝑠𝑢𝑛𝑣𝑡−1 + 𝑏𝑠𝑢𝑛𝑧𝑡−1 + 𝑒𝑡 𝑠𝑢𝑛 (5) δ𝑃𝑡 𝑐𝑎𝑛 = 𝛼𝑐𝑎𝑛𝑣𝑡−1 + 𝑏𝑐𝑎𝑛𝑧𝑡−1 + 𝑒𝑡 𝑐𝑎𝑛 (6) δ𝑃𝑡 𝑠𝑜𝑦 = 𝛼𝑠𝑜𝑦𝑣𝑡−1 + 𝑏𝑠𝑜𝑦𝑧𝑡−1 + 𝑒𝑡 𝑠𝑜𝑦 where δ 𝑃𝑡 𝑘 ; 𝑘 ∈ {𝑠𝑢𝑛, 𝑐𝑎𝑛, 𝑠𝑜𝑦} is the difference between the de-seasonalized price at time t and t-1 for sunseed, canola, and soy oil, respectively? function 𝑣𝑡−1 = 𝑃𝑡−1 𝑠𝑢𝑛 + 𝜆𝑣 𝑃𝑡−1 𝑐𝑎𝑛 − 𝑃𝑡−1 𝑠𝑜𝑦 and 𝑧𝑡−1 = 𝜆𝑧𝑃𝑡−1 𝑠𝑢𝑛 + 𝑃𝑡−1 𝑐𝑎𝑛 − 𝑃𝑡−1 𝑠𝑜𝑦 are the error correction terms. to match the co-integrating relationships implied by the cointegration tests, we constrain the coefficients on 𝑃𝑡−1 𝑠𝑢𝑛 and 𝑃𝑡−1 𝑠𝑜𝑦 to be 1 and -1 in term 𝑣𝑡−1 and the coefficients on 𝑃𝑡−1 𝑐𝑎𝑛 and 𝑃𝑡−1 𝑠𝑜𝑦 to be 1 and -1 in term 𝑧𝑡−1. we then conduct post-estimation tests to confirm that coefficients 𝜆𝑣 and 𝜆𝑧 are zero. interpreted in words, our vec specification allows oilseed prices to move together according to a long-run equilibrium. however, in each week, each price experiences an exogenous shock. after estimating the vec model, we fail to reject the constraints on error correction terms 𝑣𝑡−1 and 𝑧𝑡−1. we also fail to reject that coefficient 𝜆𝑣 and 𝜆𝑧 in the error correction equations are zero. coefficient estimates describing the historical long-run equilibrium agbioforum, 23(1), 2021 | 82 schaefer et al.—how have oilseed relative price relationships changed over time? relationships among international oilseed prices are reported in table b1. referring first to estimates for sunseed prices in column (1) of table b1, we see that the error correction term 𝛼 is negative and statistically significant at the 1% level. this suggests that monthly figure b1: actual and counterfactual oilseed prices sunseed oil prices adjust downward to correct short-run deviations from the long-run equilibrium. the estimated value of the error correction parameter 𝛼 = −0.468 indicates that (on average) the monthly sunseed oil price adjusted to correct 46.8% of any deviation from the longrun sunseed-soy price equilibrium. estimated error correction parameters for canola and soy (columns 2 and 3 of table b1) are smaller in magnitude: 0.197 for canola and 0.170 for soy and are statistically insignificant at conventional levels. taken together, these results indicate that it is primarily sunseed prices that adjust to correct deviations from long-run equilibrium. table b1: pre-break error-correction mechanism estimates (1) (2) (3) variables 𝚫𝑺𝒖𝒏𝒕 𝚫𝑺𝒐𝒚𝒕 𝚫𝐂𝐚𝒏𝒕 𝜇𝑡 0.042 0.070 (0.006) (0.019) 𝛼𝑡 0.468 0.197 0.170 (0.149) (0.136) (0.143) 𝑏𝑡 -0.129 -0.081 0.073 (0.114) (0.132) (0.138) constant 0.002 -0.005 -0.001 (0.009) (0.008) (0.009) rmse 0.049 0.046 0.048 log likelihood 379.52 0.905 autocorrelation 7.585 (p-value) (0.576) note: sample period is jan-1995 to june-2000. standard errors are in parentheses. autocorrelation test is lagrange-multiplier test for firstorder serial correlation. we use the predicted dynamic equilibrium relationships in table b1 to generate counterfactual price series for sunseed, canola, and soy oil from july 2000 through the end of the sample had regulatory reform not occurred. figure b1 plots actual versus counterfactual oilseed prices specified in natural logarithmic form. panel (a) of figure b1 shows results for sunseed oil prices. panels (b) and (c), respectively, show results for canola and soy oil prices. in each panel of figure b1, the shaded region represents the modern regulatory era by which time oilseed price relationships had achieved stability following a period of adjustment from july 2000 to may 2004. we estimate impacts by comparing actual versus counterfactual prices and corresponding price relatives during this period. comparing these price relationships in each panel of figure b1, trans-fat labeling and biodiesel expansion increased absolute prices for all oilseeds. the impact appears to be largest for sunseed oil, and the impacts for canola and soy appear to be like one another. figure b2 summarizes the price impact estimates, expressed as a percent increase relative to the counterfactual price. panel (a) of figure b2 reports absolute price impact results. panel (b) reports implicit results for price relatives. in each panel, the horizontal line within a given box represents the median estimated policy impact. the upper and lower limits of the box, respectively, represent the 75th and 25th percentile. the outer whiskers represent the 95th and 5th percentiles. as shown in panel (a) of figure b2, the multi-variate analysis suggests that trans-fat labeling and biodiesel expansion has increased absolute prices for sunseed oil by approximately 25%, relative to a world in which these policies did not exist. absolute prices for canola oil have increased by approximately 9\% and soy oil prices have increased by approximately 10% considering biofuels expansion. these absolute price impacts imply the relative price impacts shown in panel (b) of figure b2. the multivariate analysis suggests trans-fat labeling and agbioforum, 23(1), 2021 | 83 schaefer et al.—how have oilseed relative price relationships changed over time? biofuels promotion has increased the sunseed-soy and the sunseed-canola price relative by approximately 15%. on the other hand, the multivariate analysis yields no statistically significant impact of these policies on the canola-soy relative price. figure b2: price impact summary (multivariate model) note: in each panel, the horizontal line within the box represents the median estimated policy impact. the upper and lower limits of the box, respectively, represent the 75th and 25th percentile. the outer whiskers represent the 95th and 5th percentiles. agbioforum, 24(2): 31-38. ©2022 agbioforum evaluating the financial performance of commercial banks in iraq under the corona pandemic using the camels criterion ebtisama hassooni noor college of business and economics, university of babylon, iraq email: ebtsama.nour.hbus30@student.uobabylon.edu.iq hussein diekan darweesh al-dulaimi college of business and economics, university of babylon, iraq email: bus.hussein.diekan@uobabylon.edu.iq due to environmental factors such as the corona pandemic and capital adequacy and liquidity requirements, the financial performance of commercial banks has been poor. researchers and policymakers are required to focus on this phenomenon. consequently, this article examines the effect of camels criteria such as capital adequacy, asset quality, management, earnings, liquidity, and sensitivity on the return on equity in iraqi commercial banks. using twenty commercial bank databases, the study compiled secondary data from 2011 to 2020. the moments-quantile-regression (mmqr) methods were also used to investigate the relationship between variables. capital sufficiency, asset quality, management, earnings, liquidity, and sensitivity correlate positively with return on equity in iraqi commercial banks. using the camels criterion, the study guides regulators in developing bank profitability regulations during and after the corona pandemic. key words: financial performance, corona pandemic, capital adequacy, liquidity, camels criterion, assets quality, sensitivity, return on equity. 1. introduction the covid-19 pandemic has been one of the world's most pressing problems in the past decade. from the point at which it freezes every part of society in the shape of a lockdown, its terrible effects can be determined. it is a challenge affecting the entire planet's social and financial sectors. the covid-19 epidemic threatens the global economy, sends a significant financial shock wave across the economy, and significantly influences the financial market (demirgüç-kunt et al., 2021). financial institutions, notably the banking sector, experienced an immediate external shock. the economic slowdown caused by covid-19 jeopardizes bank profitability, reduces bank income, and results in debtor default losses. international institutions and banks were compelled to lower their growth forecasts (marcu, 2021). the assets of the islamic banking business in iraq will likely continue to rise over time. this will be supported by the government's aim of promoting islamic finance and financial inclusion in light of iraq's low banking penetration. overall, the iraqi financial industry is weak and underdeveloped. the iraqi banking system consists of 77 banks, of which 18 are private banks with external and internal backing and 7 are state-owned banks, 24 commercial banks, and 11 participation banks based on islamic banking operate in iraq (falih et al., 2020). recovery from the effects of the covid-19 outbreak is the greatest challenge (altameemi et al., 2021; ibrahim, 2022). various reasons include a lack of trust in the banking system and limited awareness of the islamic finance industry, which may hinder the sector's growth trajectory. as a result of covid-19, the iraqi banking system's overall share stands at 8.1%, with a market share of 3.7% of the whole banking system's deposits by the end of 2021. (eidan, 2022; hashem, 2019). in contrast, the total assets in 2020 amounted to usd 8.8 billion. despite some growth, the banking system's total assets will reach usd109.2 billion by the end of 2021. despite this, the iraqi banking system faces several significant obstacles, including recovery from the covid-19 pandemic phase, political instability, low profitability issues (roe), people's lack of confidence in the banking system, poor management, low return on investment (roi), and liquidity issues (alalie et al., 2018; hashem, 2019). to improve the overall operation of the financial system, the iraqi government should devote special attention to resolving the issue mentioned above. the present study will address the following gaps in the prior literature: 1) although firms' profitability has been studied extensively from a variety of perspectives and at various times, it has not yet reached its zenith, as a number of its aspects remain to be investigated from an iraq economy perspective; 2) al-homaidi et al. (2020) examined the relationship between the quality of the firm's assets and its profitability; however, the present study will also examine this relationship (in the presence of covid) along with the addition of capital adequacy, management, earnings, liquidity, and sensitivity in iraq using a new data set. 3) the profitability, capital sufficiency, assets quality, management, profits, liquidity, and sensitivity equation has not been tested in iraq in recent years. 4) mendoza et al. (2017) worked on the relationship between capital adequacy and the firm's profitability; however, the current investigation will also work on capital adequacy and the firm's profitability, in addition to the addition of assets quality, management, earnings, liquidity, and sensitivity by taking into account the covid pandemic effect with a new data set. 5) edem (2017) examined the relationship between liquidity and the firm's profitability; however, the current study will also examine the relationship between mailto:ebtsama.nour.hbus30@student.uobabylon.edu.iq mailto:bus.hussein.diekan@uobabylon.edu.iq agbioforum, 24(2), 2022 | 32 noor and al-dulaimi. — evaluating the financial performance of commercial banks in iraq under the corona pandemic… liquidity and the firm's profitability, with the addition of assets quality, capital adequacy management, earnings, liquidity, and sensitivity by taking into account the covid effect. 1) it will shed light on the importance of profitability even in the presence of the covid pandemic for any firm and all of its stakeholders, 2) it will be helpful for finance-related professionals to review and comprehend the factors that affect the firm's profitability in the presence of the covid pandemic, particularly in qatar, and 3) it will allow researchers to explore additional aspects of firm profitability. the investigation's format is broken into five chapters. the introduction is provided in the first chapter. the second chapter presents a survey of the literature on variables. the methodology is provided in the third chapter. the analysis is presented in the fourth chapter. the conclusion, implications, and recommendations are presented in the final chapter. 2. literature review improving a company's financial stability through boosting its capital sufficiency. when the capital adequacy is excessively high, however, enterprises are inefficient with the capital they currently have, which reduces profitability and may lead to financial instability. the covid epidemic is one of the financial system's most significant concerns regarding its effect on stability. in this connection, mendoza et al. (2017) evaluated if business capital adequacy affects its profitability. the inquiry was done on the philippine financial system. the research included a sample of 567 banks from 2009 to 2013. the collected sample was evaluated using an ab estimator. according to the study's findings, capital sufficiency did not significantly impact the profitability of rural banks in the philippines. therefore, it is vital for rural banks to carefully examine whether increased capital will lead to improved profitability or higher debt levels. the report further proposed that rural banks should implement credit risk management that specifies the method from loan request to approval, considering the trustworthy credit risk management recommendations issued by regulatory organizations. governance during the covid epidemic was one of these businesses' greatest obstacles. in this context, irawati et al. (2019) examined the impact of capital sufficiency and corporate governance on the firm's financial performance and profitability. the inquiry was undertaken on indonesian banks. from 2011 to 2015, the data from 30 banks served as a sample for the research. with the aid of eviews, the collected data was evaluated. the analysis indicated a significant correlation between adequate capitalization and firm profitability. in addition, t. h. nguyen (2020) examined the impact of capital adequacy (using ratios) on banks' profitability. the examination was done on vietnam's financial system. the study utilized a sample of 22 banks from 2010 to 2018. the collected sample was evaluated using panel data regression. according to the study's findings, bank profitability indicators are strongly and positively correlated with measures of capital adequacy, net interest margin, and non-interest revenue, but negatively correlated with measures of non-performing loans and state ownership. asset quality is essential for all businesses, but especially for the profitability of banks, which is the linchpin of any nation's financial markets. asset quality in banks is affected by the quality of loans made available by the bank. the quality of loans can be evaluated using nonperforming loans (npl), including delinquent and followup loans. the covid epidemic has significantly impacted the profitability of the enterprises' assets. due to low profitability caused by the covid epidemic, enterprises can no longer improve the quality of their assets. in this regard, kadioglu et al. (2017) examined whether the quality of a company's assets influences its profitability. the inquiry was done on the turkish banking system. the study utilized a sample of 55 financial institutions from 2005 to 2006. the collected sample was evaluated using panel data regression. according to the study's findings, the link between non-performing loans and bank profitability, as measured by return on equity and return on assets, is robust and inversely proportional. the covid pandemic has consequences all around the world, regardless of locale. it also harmed the banking system in asia. in this context, salike et al. (2018) studied whether the quality of an organization's assets significantly impacts its profitability. the research was conducted on the asian banking system. the research utilized a sample of twelve asian banks from 2001 to 2015. the collected sample was evaluated using fixed effect estimation. the study demonstrated a significant relationship between the asset quality of a company and its profitability. the quality of the firm's assets increases its profitability. in addition, alqahtani et al. (2022) investigated the relationship between business profitability and asset quality. regarding the banking system, an investigation was conducted. the collected sample was evaluated using the gmm method. according to the study's findings, the asset's quality has a beneficial effect on the banking system's profitability. return on investment is one of the most influential variables on a business's profitability (roi). as a result of the global lockdowns caused by the covid epidemic, business operations all over the world have ceased. this cessation of operations also discourages investors from investing because there is no return on investment. all of this is a result of the covid epidemic. in this regard, jahangirnia (2017) examined the relationship between return on equity (roe) and returned on investment (roi). in iran, the investigation was conducted. the investigation utilized a sample size of 77 businesses. the sample spans the years 2008 through 2012. the investigation's findings demonstrated that enhancing audit quality has prevented clients from mismanaging earnings in general and has been advantageous in preventing earnings management. in addition, the impact of earnings management is diminished agbioforum, 24(2), 2022 | 33 noor and al-dulaimi. — evaluating the financial performance of commercial banks in iraq under the corona pandemic… when the size and tenure of component auditors are considered. in addition, the research revealed that there is no relationship between earnings management and auditor specialization. likewise, shapiro et al. (2021) examined if the roi affected profitability. the study included a sample of 288 company brands. the analysis found that the roi has a substantial relationship with profitability. when evaluating a potential investment, these investors evaluate a variety of criteria. earnings per share are one of the most significant indicators of a company's profitability (eps). the firms' sales determine the earnings per share. since the covid epidemic has halted business operations because of the lockdown, there has been no revenue or profit. in this regard, alarussi et al. (2018) explored whether or not the eps is related to the firm's profitability. the investigation took place in malaysia. the analysis utilized a sample of 120 malaysian public firms. the selected sample spans the years 2012 through 2014. the analysis indicated a positive correlation between profitability, working capital, assets turnover ratio, and business size (total sales). in addition, the results suggest a negative association between profitability, leverage, and debt-equity ratios. there is no significant correlation between profitability and liquidity (current ratio). similarly, alarussi et al. (2021) investigated the variables that influence the profitability of a business. in china, the investigation was conducted. the investigation utilized a sample of one hundred chinese enterprises. the obtained sample spans the years 2017 through 2019. the analysis indicated that eps is one of the predictors of profitability in selected chinese enterprises. in addition, lim et al. (2021) examined if eps affects profitability. the investigation took place in malaysia. the analysis utilized a representative sample of malaysian pharmaceutical businesses from 2014 to 2018. the analysis indicated a positive correlation between earnings per share (eps) and profitability. the ability of a financial system to survive, expand, maintain itself, and function effectively is primarily based on liquidity and bank performance. correctly planning and implementing liquidity helps prevent errors from having long-term effects on banking operations and the economy. the cessation of activities due to the lockdown caused by the covid epidemic leads to increased expenses and a decline in profitability. this results in a rise in liquidity possibilities. in this context, wuave et al. (2020) studied whether a firm's profitability, as measured by its performance, is impacted by liquidity. the investigation took place in nigeria. the study utilized a sample of eight years spanning 2010 to 2018. the collected sample was evaluated using the hausman and other tests. the study's results demonstrated that liquidity positively affects profitability by enhancing its performance. in addition, the research suggested that nigerian banks tighten their governance system by implementing stringent policies. the companies exert their greatest efforts to increase their value. the increase in the firm's worth is directly proportional to its profitability. in this context, sukmawardini et al. (2018) examined whether liquidity, in addition to return on assets, return on equity, dividend payout ratio, and debt to equity ratio affects the firm's value in terms of profitability. the investigation was undertaken in indonesia's manufacturing sector. the study utilized a five-year sample spanning from 20102 to 2016. the collected sample was evaluated using multiple regression analysis. the study indicated that institutional ownership, roa, and dpr do not affect the value of a company. however, roe has a positive effect, and cr and der have a negative effect. while the covid pandemic posed the greatest difficulty, cash management posed the greatest obstacle. liquidity outcomes affect investors. similarly, edem (2017) investigated whether liquidity management has an impact on the performance of banks in terms of deposit money. the investigation took place in nigeria. the study utilized a sample of twenty-four banks from 1986 to 2011. the collected sample was evaluated using spss. the study indicated a significant association between the performance of deposit money banks in nigeria and their liquidity management. additionally, liquidity and cash reserve ratios positively impact return on equity, whereas the loan-to-deposit ratio has a negative impact. moreover, only banks with the highest liquidity could generate the greatest profits. numerous elements influence the profitability of any business or undertaking. the sensitivity is the change in the firm's input and output financial flows. the ratio of the proportional change in output to the proportional change in input. this disparity between input and output percentages impacts the firm's profitability. using sensitivity analysis, lee et al. (2017) explored the economic evaluation in this setting. in korea, the investigation was conducted. a sensitivity analysis can be used to analyze the economic state of any company or project according to the research findings. in addition, gräfe et al. (2020) researched the sensitivity of economic profitability. in indonesia, the investigation was carried out. according to the inquiry's findings, economic profitability can be determined using sensitivity analysis. similarly, fuess et al. (2018) evaluated if the sensitivity analysis increases the profitability of the process. the investigation took place in brazil. the examination indicated a significant relationship between the profitability of a process and sensitivity analysis. the sensitivity analysis increases the profitability of the process. similarly, yuan et al. (2017) investigated whether economic profitability can be evaluated using sensitivity analysis. in china, the investigation was conducted. the investigation revealed that the economic profitability of any given project could be affected by sensitivity analysis. 3. research methodology this article examines the influence of capital adequacy, asset quality, management, earnings, liquidity, and sensitivity on the return on equity in iraqi commercial banks. using twenty commercial bank databases, the study agbioforum, 24(2), 2022 | 34 noor and al-dulaimi. — evaluating the financial performance of commercial banks in iraq under the corona pandemic… compiled secondary data from 2011 to 2020. utilizing understudy constructs, this article developed the following equation: 𝑅𝑂𝐸𝑖𝑡 = 𝛼0 + 𝛽1𝐶𝐴𝑖𝑡 + 𝛽2𝐴𝑄𝑖𝑡 + 𝛽3𝑀𝑁𝐺𝑖𝑡 + 𝛽4𝐸𝑅𝑖𝑡 + 𝛽5𝐿𝑄𝑖𝑡 + 𝛽6𝑆𝑁𝑇𝑖𝑡 + 𝑒𝑖𝑡 (1) where; roe = return on equity t = period i = banks ca = capital adequacy aq = assets quality mng = management er = earnings lq = liquidity snt = sensitivity profitability served as the dependent variable in the study, which was quantified by return on equity. in addition, the study utilized six independent variables, including capital adequacy, measured by the ratio of a bank's capital to its risk-weighted assets, assets quality, measured by the probability of default against the assets, management, measured by return on investment, earnings, measured by earnings per share, liquidity, measured by the ratio of current assets to current liabilities, and sensitivity, measured by the ratio of percentage change in output by the percentage change in input. table 1 lists the variables and measures in question. table 1: variables with measurements s# variables measurement sources 01 profitability return on equity commercial banks 02 capital adequacy the ratio of a bank's capital to its risk-weighted assets. commercial banks 03 assets quality the probability of default against the assets. commercial banks 04 management return on investment commercial banks 05 earnings earnings per share (net income divided by the number of common shares) commercial banks 06 liquidity the ratio of current assets and current liabilities commercial banks 07 sensitivity the ratio of percentage change in output by the percentage change in input. commercial banks the researchers applied descriptive statistics that show the variables' details. moreover, the researchers also applied the correlation matrix that highlights the correlation among variables. in addition, the researchers applied the variance inflation factor (vif) that highlights the multicollinearity among predictors. the equations are given below: r2 y 𝑌𝑖𝑡 = 𝛼0 + 𝛽2𝑋2𝑖𝑡 + 𝛽3𝑋3𝑖𝑡 + 𝛽4𝑋4𝑖𝑡 + 𝛽5𝑋5𝑖𝑡 + 𝑒𝑖𝑡 (2) 𝑗 = 𝑅𝑌 2, 𝑅𝑋1 2 , 𝑅𝑋2, 2 𝑅𝑋3, 2 𝑅𝑋4, 2 𝑅𝑋5 2 (3) 𝑇𝑜𝑙𝑟𝑎𝑛𝑐𝑒 = 1 − 𝑅𝑗 2𝑉𝐼𝐹 = 1 𝑇𝑜𝑙𝑒𝑟𝑎𝑛𝑐𝑒 (4) the article also utilized the mmqr method to investigate the relationship between variables. machado and silva elucidate this strategy. it efficiently handles outliers. in addition, it provides dynamic assessments under various conditions; the model itself has nonlinear properties. in addition, it addresses heterogeneity and endogeneity. so, 𝑄𝜏(𝜏/𝑋) shows the conditional quantile, and the "locational-scale alternate model" is developed as below: 𝐴𝑖𝑡 = 𝛼𝑖 + 𝐵𝑖𝑡𝛽 + (𝛿𝑖 + 𝐶𝑖𝑡𝜆)𝑈𝑖𝑡 (5) in equation (5), the probability represents by 𝑃{𝛿𝑖 + 𝐶𝑖𝑡𝜆 > 0} = 1 , while the k-vector of component b is represented by c, and the components are transformed with component l, which is given below: 𝑍𝑙 = 𝑍𝑙 (𝑌), 𝑙 = 1, … … , 𝑘 (6) in equation (6), orthogonal to 𝐵𝑖𝑡 represents by 𝑈𝑖𝑡 that is consistent with attaining the moment conditions. so, in equation (5), the conditional quantile of a is developed as under: 𝑄𝜏(𝜏/𝐵𝑖𝑡) = (𝛼𝑖 + 𝛿𝑖𝑞(𝜏)) + 𝐵𝑖𝑡𝛽 + 𝐶𝑖𝑡 𝜆 𝑞(𝜏) (7) in equation (7), 𝐵𝑖𝑡 represents the predictors such as ca, aq, mng, er, lq, and snt and 𝐴𝑖𝑡 is the predictive variable, such as roe. so, 𝑄(𝜏) is developed as under: 𝑀𝑖𝑛𝑞 = ∑ ∑ 𝑝𝜏𝑖𝑡 (𝑅𝑖𝑡 − (𝛿𝑖 + 𝑍𝑖𝑡 𝜆 )𝑞) (8) 4. research findings the researchers employed descriptive statistics to illustrate the details of the variables. roe average value was 12,783, ca mean value was 9,081, aq average value was 0.392, and mng mean value was 8.019. in addition, the output revealed that the mean value of er was 12,379, while the mean value of lq was 2,833, and the mean value of snt was 5,893. table 2 displays these results. in addition, the researchers utilized the correlation matrix, which displays the relationship between variables. the findings revealed a favorable relationship between capital adequacy, management, earnings, liquidity, sensitivity, and return on equity in iraqi commercial banks. in contrast, asset default probability is negative, indicating that asset quality also positively correlates with return on equity. in addition, the researchers utilized vif, which emphasizes the multicollinearity of predictors. the output revealed that the vif values are less than five and that there are no predictor multicollinearity issues. table 4 displays these results. the article also utilized the mmqr method to analyze the relationship between variables. the findings revealed a favorable relationship between capital adequacy, management, earnings, liquidity, sensitivity, and return on equity in iraqi commercial banks. in contrast, asset default probability is negative, indicating that asset quality also positively correlates with return on equity. table 5 displays these results. agbioforum, 24(2), 2022 | 35 noor and al-dulaimi. — evaluating the financial performance of commercial banks in iraq under the corona pandemic… table 2: descriptive statistics variable obs mean std. dev. min max roe 200 12.783 1.291 8.093 18.292 ca 200 9.081 1.875 6.029 15.283 aq 200 0.392 0.281 0.291 0.522 mng 200 8.019 0.382 7.201 17.402 er 200 12.379 2.086 9.801 17.231 lq 200 2.833 0.330 1.460 3.729 snt 200 5.893 0.809 2.732 11.477 table 3: correlation matrix variables roe ca aq mng er lq snt roe 1.000 ca 0.548 1.000 aq -0.304 0.594 1.000 mng 0.730 0.463 0.739 1.000 er 0.392 0.903 -0.692 0.404 1.000 lq 0.107 -0.684 0.281 0.557 0.726 1.000 snt 0.329 -0.783 0.779 -0.903 0.543 0.365 1.000 table 4: variance inflation factor vif 1/vif ca 2.893 0.346 aq 2.721 0.368 mng 2.632 0.379 er 2.577 0.388 lq 2.102 0.476 snt 2.095 0.477 mean vif 2.503 . table 5: panel quartile estimation (mmqr) variables method of moments quantile regression (mmqr) location scale grid of quartiles 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 ca 0.784*** 0.756* 0.653** 0.827** 0.745* 0.675** 0.645* 0.553* 0.453* 0.153* 0.048 aq 0.689** 0.682* -0.789* -0.374* -0.654* -0.844** -0.894* -0.782* -0.643* -0.212 -0.038 mng 0.594*** 0.711** 0.902** 0.483** 0.839* 0.739* 0.872* 0.718* 0.735* 0.732* 0.087 er 0.886* 0.650** 0.209* 0.874* 0.394** 0.574* 0.594* 0.102 0.038 0.222 0.339* lq 0.744** 0.821** 0.674** 0.647** 0.483** 0.784* 0.093* 0.122 0.931* 0.011 0.983* snt 0.095* 0.093** 0.908* 0.528** 0.487** 0.773** 0.654* 0.143 0.192 0.732* 0.755* ***, **, and * represent significant level at 1%, 5%, and 10%, respectively 5. discussions the results indicated that adequate capital has a positive relationship with banks' return on equity. these findings are confirmed by ichsan et al. (2021), demonstrating that banks with appropriate capital and the capacity to manage the risks they fear can engage in profitable commercial transactions and increase their returns on equity. according to fakhri et al. (2021), the availability of capital sufficient to manage the business and limit the financial risks enables banks and other financial institutions to operate their businesses efficiently and earn more profits. the findings revealed a positive relationship between asset quality and banks' return on equity. these results concur with ledhem et al. (2020)'s conclusion that banks offer loans secured by certain securities, sometimes known as assets. if there are no hazards associated with the default behavior of clients, then the institutions have high-quality assets. with high-quality assets, institutions can make sound decisions and generate greater returns on equity. these findings are reinforced by zhou et al. (2021), who report that banks with high-quality assets have greater equity returns. the findings revealed a positive relationship between management and banks' return on equity. these outcomes are also consistent with sathyamoorthi et al. (2020)'s assertion that effective investment management delivers greater returns on the same amount of investment. in this case, bank returns on equity can be increased. al zaidanin (2020) confirms that investment is a significant source of income for banks and other financial organizations. banks with effective investment management can generate greater profits, resulting in greater returns on equity. the findings revealed a positive relationship between bank earnings and returned on equity. these findings are corroborated by chaturvedi et al. (2021). they argue that financial organizations with greater direct earnings from sales of products and services and indirect earnings can have greater profitability. consequently, they generate returns on equity. these results are also consistent with singh et al. (2020)'s assertion that banking firms with higher earnings can achieve greater returns on equity. the findings revealed a positive relationship between agbioforum, 24(2), 2022 | 36 noor and al-dulaimi. — evaluating the financial performance of commercial banks in iraq under the corona pandemic… liquidity and banks' return on equity. these findings are corroborated by rasli et al. (2020), who assert that liquidity enables banking institutions to make unbiased financial decisions. the increased liquidity enables them to create greater revenues by capitalizing on opportunities. these findings are consistent with (a. h. nguyen et al., 2020)'s assertion that the higher liquidity of assets enables financial institutions to buffer the negative effects of risk exposures and capitalize on present opportunities. these companies can provide significant returns on equity. the findings revealed a favorable relationship between sensitivity and banks' return on equity. these findings are reinforced by yadav et al. (2021), who demonstrate that banking firms may produce more with the same or fewer inputs if they have a higher sensitivity. this boosts equity returns. 6. implications this study serves as a guide for researchers and academics due to its contribution to the body of knowledge. it focuses mostly on the financial performance of commercial banks. it examines the role of camel, such as capital adequacy, asset quality, management, earnings, liquidity, and sensitivity in return on equity in iraq in the context of the coronavirus. this study is of great importance to emerging nations such as iraq, as it provides guidelines for improving the financial performance of commercial banks. according to the report, commercial bank management must boost capital adequacy to increase returns on equity. the study also indicates that bank management must prioritize preserving asset quality to obtain higher returns on equity. it is proposed that banks manage their investment portfolios effectively to earn higher returns on equity. similarly, it suggests that banking institutions must generate bigger earnings per share to achieve higher returns on equity. using the camels criterion, the study guides regulators in drafting policies regarding banks' profitability during and after the corona pandemic. the article recommends that bank management acquire highly liquid assets to maintain returns on equity. similarly, banking policies should be designed to increase sensitivity and, thus, must increase equity returns. 7. conclusion during the coronavirus pandemic, the authors intended to investigate the role of camel, including capital adequacy, assets quality, management, earnings, liquidity, and sensitivity in return on equity. the authors gathered empirical data from iraq during the coronavirus pandemic and discovered a positive correlation between capital adequacy, assets quality, management, earnings, liquidity, sensitivity, and return on equity. banks and other financial institutions can run their businesses efficiently and generate greater profits with adequate capital for risk management. the results also indicated that banks with high-quality assets have higher returns on equity, which promotes financial growth. when the same investment is made, the study revealed that competent investment management results in a higher return on equity. similarly, it demonstrated that larger profits enable banks to achieve higher returns on equity. in addition, the results indicated that greater asset liquidity enables banking institutions to reduce losses from risk exposures and capitalize on current opportunities. for these businesses, high returns on equity are feasible. the study also concluded that financial institutions could produce more with the same or fewer inputs if they were more sensitive. consequently, returns on equity are increased. 8. limitations there are still some limitations that make it difficult to apply the results. however, the limitations may be eliminated in the future relevant literature. first, the present study evaluates the financial performance of banks based on limiting factors such as capital adequacy, asset quality, management, earnings, liquidity, and sensitivity; thus, the study is limited. future authors are advised to add to these factors for a more accurate evaluation of the financial performance of banks. furthermore, the results are based solely on evidence from iraqi commercial banks, making them less general. future authors will evaluate the financial performance of banks using evidence from multiple economies. references al-homaidi, e. a., almaqtari, f. a., yahya, a. t., & khaled, a. s. 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(2021). corporate social responsibility and bank financial performance in china: the moderating role of green credit. energy economics, 97, 105190. doi: https://doi.org/10.1016/j.eneco.2021.105190 https://doi.org/10.21511/bbs.15%282%29.2020.16 https://doi.org/10.21511/bbs.15%282%29.2020.16 https://web.s.ebscohost.com/abstract?direct=true&profile=ehost&scope https://web.s.ebscohost.com/abstract?direct=true&profile=ehost&scope https://www.researchgate.net/profile/salina-rasli/publication/343826296 https://www.researchgate.net/profile/salina-rasli/publication/343826296 https://doi.org/10.1108/cfri-10-2016-0118 https://doi.org/10.1108/cfri-10-2016-0118 https://doi.org/10.11114/afa.v6i1.4 https://doi.org/10.3982/ecta17674 https://doi.org/10.1177/0976747920966866 https://doi.org/10.15294/maj.v7i2.24878 https://www.researchgate.net/profile/henry-yua/publication/342814487 https://www.researchgate.net/profile/henry-yua/publication/342814487 https://ssrn.com/abstract=3890122 https://doi.org/10.1007/s10499-017-0111-8 https://doi.org/10.1016/j.eneco.2021.105190 agbioforum, 23(1): 84-91. ©2021 agbioforum bactericidal activity of extracts and major fractions of endophyte metabolites of fungus cladosporium velox against pneumonia and diarrhea pathogens asri peni wulandari department of biology, padjajaran university, bandung, indonesia email: asri.peni@unpad.ac.id https://orcid.org/0000-0002-8505-9188 idzni harashta haifa department of biology, padjajaran university, bandung, indonesia email: idzniharashta@gmail.com https://orcid.org/0000-0002-9949-7672 dewi ratnaniati department of biology, padjajaran university, bandung, indonesia email: dewiratnaniati@gmail.com https://orcid.org/0000-0002-9407-8225 nia rossiana department of biology, padjajaran university, bandung, indonesia email: nia.rossiana@unpad.ac.id https://orcid.org/0000-0001-6587-0400 the resistance of bacteria to drugs is a problem in the treatment of diarrhea and pneumonia. a new source of antibiotic with high sensitivity and potential to develop as new drugs is required. this study was conducted to determine the fungus of cladosporium and test the crude extract and the major fraction on the bacteria that cause pneumoniae and the diarrhea. firstly, the fungus was determined its species with molecular identification. the method for bacterial sensitivity tests was carried out by disc diffusion; mic and mbc analysis using liquid dilution; and the data were statistically analyzed using one way anova. the species was identification as cladosporium velox shows the inhibition ranging from 29.9-38.84 mm; all mbc/mic values <2 indicate the extract can kill all the bacteria tested. these results indicate that the antibacterial metabolites of c. velox are bactericidal and have the potential to be developed as candidates for anti-pneumonia and anti-diarrheal drugs. key words: bactericidal, cladosporium velox, diarrhea, pneumonia. 1. introduction pneumonia is the main cause of death due to infection in children under five, which kills around 2,400 children every day (who, 2017). this data is supported by a report from unicef which states that of the 5.6 million deaths under five, nearly 16% are caused by infectious pneumonia. in tropical areas such as indonesia, these bacteria have an indication of an infection rate in humans of 15% -30%. the main cause of pneumonia is infection by the bacteria klebsiella pneumoniae and streptococcus pneumonia. in particular, s. pneumoniae causes 70-90% of pneumonia in children under five and more than 40% in adults (eucast, 2018; valencia et al., 2016). diarrheal disease is often shown with more stool consistency symptoms than usual, followed by a more frequent frequency of the day. bacteria that cause diarrhea include e. coli and salmonella, which are bacterial contaminants in food and beverages. approximately 1.7 billion cases of diarrhea each year occur in children with a mortality rate of around 525,000 in children under five (halim et al., 2017). pneumonia caused by bacteria, viruses, or fungi that would make inflammation in the lung parenchyma, starting from the alveoli to the bronchi or bronchioles which causes the exchange of oxygen and carbon dioxide disrupted (who, 2017). this disease could spread from individuals which would show symptoms in pathological stage marked by the alveoli containing a mixture of inflammatory exudate, bacteria, and white blood cells (walker and whittlesea, 2012). diarrhea and pneumonia are still a big challenge in health because several types of microorganisms that cause these diseases are starting resistant to antibiotics such as ciprofloxacin (puspitarini et al., 2019). the high mortality rate caused by diarrhea and pneumonia and the urge to find another antibiotics alternative to find the effective antidiarrheal and anti-pneumonic. several studies on antidiarrhea and anti-pneumonia obtained compounds from various sources, namely: medicinal plant combretum dolichopetalum (nwuke, 2020), lemon fruit extract, endophytic fungi fusarium and colletrichum (ekawati and darmanto, 2015). several studies have shown that looking for antibacterial extracts for diarrhea and pneumonia by utilizing microorganisms because it is more efficient and easier to propagate with an appropriate procedure. many studies that have reported the scope of interest in the study of new drugs of various antibiotic resistance by bacterial pneumonia and diarrhea require new drug alternatives sourced from metabolic extracts of endophyte microorganisms with high antibacterial activity. studies on the antibacterial activity of cladosporium spp. showed potential against the following bacteria: e. coli (hoepfner et al., 2012; hulikere m & joshi, 2017; khan et al., 2016; mahadevamurthy et al., 2016; singh et al., 1994; sugijanto & dorra, 2016), s. aureus (khiralla et al., 2016), s. epidermis, b. subtilis (hulikere m & joshi, 2017), b. megaterium, b. stearothermophilus (hoepfner et al., 2012). crude extract of c. oxysporum (hartanti et al., 2016) showed antibacterial sensitivity against e. coli atcc 8739 and s. aureus atcc 6538 (hartanti et al., 2016; valencia et al., 2016). studies on antibacterial pneumonia such as k. pneumoniae and s. pneumoniae mailto:asri.peni@unpad.ac.id https://orcid.org/0000-0002-8505-9188 mailto:idzniharashta@gmail.com https://orcid.org/0000-0002-9949-7672 mailto:dewiratnaniati@gmail.com https://orcid.org/0000-0002-9407-8225 mailto:nia.rossiana@unpad.ac.id https://orcid.org/0000-0001-6587-0400 agbioforum, 23(1), 2021 | 85 wulandari, haifa, ratnaniati and rossiana. — bactericidal activity of extracts and major fractions of endophyte metabolites of fungus… have been reported using metabolites produced by penicillium sp (rossiana et al., 2017); thymbra spicata (deshmukh et al., 2015; hartanti et al., 2016); alternaria sp (deshmukh et al., 2015). based on this information, although diarrhea-causing bacteria have been tested with metabolites from cladopsorium spp, this study is the first to test the sensitivity of pneumonia bacteria using extracts from cladosporium (talha, 2020). on previous research, shown the active compounds from the fermented extract of cladosporium sp (zhao & talha, 2021). which is an endophytic microfungi sargassum cineureum has been carried out by examinati, (2018). the crude extract has high cytotoxic properties with the ic50 value category being very active as an anticancer against breast cancer cell lines mcf-7, hela, and du-145 cell lines (wulandari et al., 2018). the purification results of the metabolite compounds from the genus cladosporium indicated the presence of major extracts which were thought to be cladosporin derivatives belonging to the polyketide group. the cladosporin have a broad spectrum of sensitivity as antibacterial (silber et al., 2014). to complete the classification of the genus cladosorium and evaluate its antimicrobial potential, the aim of this study was to determine the genus species and evaluate the sensitivity of the main extracts and fungal fractions to bacteria that cause diarrhea and pneumonia. 2. research methodology isolate cladosporium sp. en-s01, is a collection from the microbiology laboratory of the department of biology, padjadjaran university, indonesia. the standard bacteria tested in this study were: klebsiella pneumoniae atcc 700603, streptococcus pneumoniae atcc 49619, escherichia coli atcc 25922, and salmonella typhimurium atcc 49416 which is a collection of rumah sakit pendidikan (rsp), faculty of medicine, padjadjaran university, indonesia. growth media for bacteria and fungi used: müler hinton agar (mha) powder [oxoid], müler hinton broth (mhb), pda (potato dextrose agar), pdb (potato dextrose broth), and yeast extract [oxoid]. 2.1 molecular identification and phylogenetic analysis the fungus culture was grown on potato dextrose agar media (pda) for 1 week and then grown on potato dextrose broth media (pdb) for 3 days. fungal biomass was extracted by dna by using nucleon reagent phytopure (amersan life science). pcr amplification of its using primary its 4: 5'-tcc tcc gct tct tga tat gc-3' and primary its 5: 5'-gga aaa agt aac aag g-3' 5. pcr purification was carried out by the peg 6 precipitation method of continued sorting. the sequencing results were re-purified by the ethanol purification method. the nitrogen base sequence was recognized by an automated dna sequencer (abo prism 3130 genetic analyzer applied bio system). the trimming and assembling process was carried out using the chromas pro program then using blast with genomic data from the ddbj/dna bank of japan data (http://blast.ddbj.nig.ac.ip) or ncbi/national center for biotechnology information (http://ncbi.nlm.nih.gov/blast/) to determine the most molecularly homologous species. the evolution analysis was concluded by using the neighbord joining tree method. tree #1 of 6 parsimony trees (length = 231) is shown. a consistency index of 0.982684 (0.958333), a retention index of 0.956044 (0.956044), and a composite index of 0.939489 (0.916209) for all parsimony-informative sites and sites (in brackets). the mp tree was obtained using the subtree-pruningregrafting (spr) algorithm with level 0 searching where the initial tree was obtained by adding random sequences (10 replications) (yang & talha, 2021). this analysis involves 10 nucleotide sequences. the codon position entered is 1st + 2nd + 3rd + noncoding. all positions containing gaps and missing data are eliminated. there are a total of 305 positions in the final dataset. evolutionary analysis carried out in mega7 (singh et al., 1994). 3. fermentation, extraction and isolation of secondary metabolites fermentation to produce metabolites was carried out with reference to (wulandari et al., 2018). the suspension of fungal culture was added to the physiological solution as much as 90 ml. potato dextroxe yeast (pdy) liquid media was used as a fermentation medium which added a starter suspension and incubated in a shaker (150 rpm) for 4 x 24 hours. the crude extract and ethyl acetate fraction were prepared based on the method from examinati et al. (2018) by macerating the broth from the culture using ethyl acetate (1: 1) solvent. the filtrate was concentrated using a vacuum rotary evaporator at a temperature of 20-40ºc. the fractionation of the metabolites was carried out by open column chromatography of silica gel g60. the major fraction was then analyzed using thin layer chromatography of gf254 silica plates and compound detection using 10% sulfuric acid staining in ethanol which was then heated with a uv strain detector lamp at λ 254 nm and 365 nm. the simplest staining is used as the target fraction which is then purified again by column chromatography technique to obtain the purity of the fraction. all extracts were stored in glass flasks, stored in the refrigerator until used. 3.1 preparation of the inoculum and conditions for microbial growth the pathogen bacterial strains were maintained on agar slant at 4°c and subcultured on fresh agar plates and on growth medium 24 hours before the antibacterial test. activation of the pathogen bacteria was carried out on mueller hinton agar (mha), while for the determination of mic and mbc the inoculum was prepared on mueller hinton broth (mhb) medium and nutrient agar (himedia) respectively. agbioforum, 23(1), 2021 | 86 wulandari, haifa, ratnaniati and rossiana. — bactericidal activity of extracts and major fractions of endophyte metabolites of fungus… 3.2 antibacterial activity test the crude extract samples and column fractions were tested for their antibacterial activity by the disc diffusion method. 17,18 samples were assayed at 100 mg/ml, 80 mg/ml, 60 mg/ml, 40 mg/ml, and 10 mg/ml. zone of inhibition was compared with streptomycin (10 µg) and cefotaxime (30 µg) for antibiotic pneumoniae, whereas control antibiotics for diarrhea used cefotriaxone (30 µg). the effect of the solvent as a negative control using 2% dmso solvent. mic and mbc crude extracts and column fractions were assessed using the broth microdilution method. bacterial strains were inoculated into mueller hinton (mh) broth and allowed to grow overnight in an incubator for 24 hours with a stable temperature of 37°c, bacterial growth was compared to a standard of 0.5 mcfarland. the crude extract and column fraction were added by dilution into each eagle tube containing mhb media. the bacteriostatic effect was determined by the mic value observed when the turbidity in the liquid medium at each sample concentration could inhibit the growth of the standard test bacteria. mic value was determined as the lowest growth inhibiting extract concentration (clsi. 2012). the experiment was replicated three times. the bactericidal effect is determined by mbc which can kill 99.9% of standard test bacteria. all tubes at the mic stage were previously confirmed by sub-culture to the solid surface of the mha medium using the swab method. the test was carried out with duplicates. the lowest growthinducing concentration after subculture was taken as the minimum bactericidal concentration (mbc) value. all mic tests were repeated in triplicate. 3.3 statistical analysis data were analyzed using the statistical package (spss, version 12.0). experimental results are expressed as mean ± standard deviation (sd). group comparisons were carried out by one way anova followed by the post hoc waller-duncan test. 4. result and discussion 4.1 species determination in this study, isolates of cladosporium sp. which isolated as endophyte microfungi from macroalgae sargassum cineureum were determined its species based on the closest similarity by nucleotide analysis (figure 1). the results obtained indicate that the taxon fungus cladosporium sp. the closest to homology with the dna sequence obtained was cladosporium velox strain cbs 119417 from material type with 92% homology. c. velox has not been widely studied, but other isolates that have been found have been found in hypersaline areas and in plant material (zalar et al., 2007); in addition, the potential for insecticides against spodoptera litura by partially purified fractions obtained from c. velox as an endophyte was isolated from tinospora cordifolia (singh et al., 1994). the phylogenetic tree with the neighbor-joining tree method formed 3 in-group groups and 1 outgroup group. the in-group group is divided into one large clade, namely clade i and two smaller clades, namely clad ii and clad iii. class i consists of penicillium digitatum, p. vanluykii, cladosporium velox, c. tenuissimum, and c. cladosporioides. clad ii consists of cladosporium colocasiae and c. oxysporum, clad iii consists of cladosporium herbarum and c. bruhnei. the outgroup group in clade iv is cladosporium sphaerospermum which is needed in the construction of phylogenetic trees to provide character polarization or characteristics, namely apomorphic and plesiomorphic characters. c. velox is closely related to p. digitatum and p. vanluykii. figure 1. a neighbor-joining tree based on the nucleotide sequence of cladosporium and other similar species selected from genbank 4.2 antibacterial activity test the inhibition zone of the mean diameter of crude extract samples and the fraction of the antibacterial activity column of c. velox tested to detect good antibacterial activity against pneumoniae and diarrhea bacteria tested is tabulated in table 1. the zone of mean inhibition of crude extract antibacterial activity and its fraction against concentration. based on the mean value of the inhibition zone, all concentration variations ranged from 19.72 – 38.84 mm, so the crude extract and fraction column showed antimicrobial activity with indications of being very active. at a concentration of 100 mg/ml sample, the highest inhibition zone was determined with a range of 29.9 – 38.84 mm which was significantly different when compared to commercial antibiotics as a positive control for all tested bacteria. it can be seen from the zone diameter inhibition study that s. pneumonia as a gram-positive bacterium is more susceptible to crude extracts and fractions than other gram-positive test bacteria. the mean clear zone formed by s. pneumoniae was in the range 23.96 – 38.4 mm, while for gram-positive sensitivity of k. pneumoniae, e. coli, s. typhimurium each showed clear zones in the range of 19.72 – 31.64 mm, 20.10 – 32.8 mm and 21.40 – 30.35 mm. agbioforum, 23(1), 2021 | 87 wulandari, haifa, ratnaniati and rossiana. — bactericidal activity of extracts and major fractions of endophyte metabolites of fungus… table 1: inhibition zone mean (in mm) of crude extract and column fraction from c. velox for tested bacteria concentration (mg/ml) zone of inhibition (diameter) in mm k. pneumoniae atcc 700603 s. pneumoniae atcc 49616 e. coli atcc 25922 s. typhimurium atcc 49416 ce cf ce cf ce cf ce cf 10 19.72 + 0.22 20.13 + 0.82 23.96 + 0.67 25.31 + 0.53 20.15 + 0.07 20.10 + 0.00 21.40 + 0.00 21.40 + 0.00 40 25.57 + 0.28 25.58 + 0.20 29.26 + 0.22 29.51 + 1.16 23.45 + 0.07 21.70 + 0.00 25.15 + 0.21 24.40 + 0.00 60 26.89 + 0.11 26.93 + 0.59 31.22 + 0.95 32.74 + 0.34 23.45 + 0.21 25.45 + 0.21 26.6 + 0.28 27.5 + 0.14 80 28.98 + 0.56 29.21 + 0.85 34,51 + 0.50 35.31 + 0.19 25,45 + 0.21 27.6 + 0.42 29.15 + 0.21 27.8 + 0.00 100 31.33 + 1.44 31,64 + 0.12 37,1 + 0.50 38.84 + 0.60 29,9 + 0.28 32.8 + 0.28 30.2 + 0.00 30.35 + 0.35 streptomicine (10 g/ml) 14.33 + 0.00 14,33 + 0.00 11.15 + 0.00 11.15 + 0.00 cefataxime (30 g/ml) 18.35 + 0.06 18.35 + 0.06 26.48 + 0.00 26.48 + 0.04 cefotriaxone (30 g/ml) 25 + 0.00 25 + 0.00 29 + 0.00 29 + 0.00 dmso 2% 0 0 0 0 0 0 0 0 ce: crude extract and cf: column fraction dmso – negative control showed no antibacterial activity agbioforum, 23(1), 2021 | 88 wulandari, haifa, ratnaniati and rossiana. — bactericidal activity of extracts and major fractions of endophyte metabolites of fungus… .table 2: inhibition parameters (mic, mbc) of crude extract and column fraction (mg/ml) antibacterial activity (mic and mbc in mg/ml) compounds inhibition parameters k. pneumoniae atcc 700603 s. pneumoniae atcc 49619 e. coli atcc 25922 s. typhimurium atcc 49416 crude extract mic 2.5 1.25 2.5 2.5 mbc 5 2.5 5.0 5.0 mbc/mic 2 2 2 2 bakterisidal + + + + column fraction mic 2.5 0.08 0.625 1,25 mbc 5 0.126 1.25 2.5 mbc/mic 2 1.57 2 2 bakterisidal + + + + streptomicin 10 mig/ml) + + + + + cefotaxime (30 mig/ml) + + + + + cefotriaxone (30 mig/ml) + + + + + table 3. inhibition parameters (inhibition zone and mic) of compound and extract to pathogenic penunomiae, diarrhea and reference antibacterial drugs (mg/ml) genus/species/strain samples solvent test bacterial inhibition zone (mm) mic (mg/ml) reference cladosporium sp. cladopsorin etil asetat e. coli 0.1 (hoepfner et al., 2012) c. sphaerospermum ce etil asetat e. coli s. typhimurium 27.50 – 32.00 0.625 (mahadevamurthy et al., 2016) c. cladosporioides ce etil asetat s. aureus 2 (khiralla et al., 2016) cladosporium sp. ce metanol e. coli 0.025 (singh et al., 2016) cladosporium sp. ce metanol s. aureus 7 < 20 0.036 (singh et al., 2016) c. cladosporioides ce etil asetat s. aureus, e. coli, s. epidermis, and b. subtilis 3.5 – 6 (hulikere m and joshi, 2017) cladosporium sp. ce metanol e. coli, s. aureus, b. megaterium, and p. aeruginosa 14 – 18 (khan et al., 2016) cladosporium sp. methyl eter fusarubin metanol e. coli, s. aureus, b. megaterium, and p. aeruginosa 24 – 27 (khan et al., 2016) c. oxysporum ce etil asetat e. coli 8.45 – 18.41 (sugijanto and dorra, 2016) c. oxysporum ce etil asetat s. aureus 7.15 – 18.53 (sugijanto and dorra, 2016) c. velox ce etil asetat k. pneumoniae atcc 19.72 – 31.33 2.5 this study c. velox aromatic compound etil asetat k. pneumoniae atcc 20.13 – 31.64 2.5 this study c. velox ce etil asetat s. pneumoniae atcc 25.31 – 37.10 1.25 this study c. velox aromatic compound etil asetat s. pneumoniae atcc 23.96 – 38.84 0.08 this study c. velox ce etil asetat e.coli atcc 20.15 – 29.9 2.5 this study c. velox aromatic compound etil asetat e.coli atcc 21.4 – 30.2 0.625 this study c. velox ce etil asetat s.typhimurium atcc 20.1 – 32.8 2.5 this study c. velox aromatic compound etil asetat s.typhimurium atcc 21.4 – 30.35 1.25 this study penicillium sp. ce etil asetat k. pneumoniae 21 – 25 3.3 (rossiana, miranti and kosmita, 2017) mic: minimum inhibitory concentration; mbc: minimum bactericidal concentration; +: growth agbioforum, 23(1), 2021 | 89 wulandari, haifa, ratnaniati and rossiana. — bactericidal activity of extracts and major fractions of endophyte metabolites of fungus… the different sensitivity of the tested bacteria is due to the complex structure of the cell wall and outer membrane of gram-negative bacteria which are generally more resistant to administration of antibiotics which can inhibit the penetration of certain antibiotics into cells. ethyl acetate extract and column fraction were further targeted by mic and mbc because they offer significant bacteriostatic or bactericidal activity against the test pathogens and the results are depicted in table 2. in this study the crude extract and secondary metabolite fraction of c. velox showed antibacterial activity against pathogenic pneumonia and diarrhea. the mic value of crude ethyl acetate extract varied in the range 1.25 2.5 mg/ml, while the column fraction showed inhibitory activity in the range of 0.08 2.5 mg/ml. in this test, it is evident that the test bacteria are still growing using standard antibiotics such as streptomycin, cefotaxime, and cefotaxone with concentrations commonly used in medicine. these findings suggest that c. velox metabolites has antibacterial potential that is effective against bacteria resistant to streptomycin, cefotaxime, and cefotaxone the effect of crude extract and major fraction on s. pneumoniae atcc 49619 showed the most sensitive effect with mic = 0.08 1.25, while other pathogenic bacteria had higher values with mic = 2.5. this confirms the effectiveness of the clear zone test (table 1) which shows that the metabolites of c. velox are more sensitive to gram-positive bacteria. the mbc value of crude extract against the tested bacteria was achieved at a concentration of 2.5 – 5 mg/ml, while the value for the fraction that exposed the lethal effect was in the range 0.126 – 5 mg/ml. these results prove that purification of metabolic compounds can increase the effectiveness of antibiotics against pathogenic bacteria. the mbc/mic value shows the comparison that the more the number of samples used to control these pathogenic bacteria is comparative. the mbc/mic ratio is understood to define the category of antibacterial activity as bactericidal or bacteriostatic. if the mbc/mic ratio is ≤ 4, the effect is considered bactericidal but if the mbc/mic ratio is > 4, the effect is defined as bacteriostatic (hoepfner et al., 2012). in this study, all mbc/mic values <2 indicating the effect of the extract and the major fraction of the fungus metabolites exerted antibiotic activity that killed all the tested bacteria. these findings suggest that the antibacterial metabolites of c. velox for the treatment of infections caused by pneumonia and bacterial diarrhea have bactericidal activity. an interesting point can be seen if we can enumerate studies on the antimicrobial reports of various groups of cladosporium spp. and other fungi that have been tested for sensitivity to pneumonia and pathogenic diarrhea (table 3). several genera of cladoporium such as c. sphaerospermum, c. oxysporum, and c. cladosporiades, and several other species have been reported to have antibacterial activity against bacteria that cause diarrhea pathogens. other fungi such as penicillium (hartanti et al., 2016; rossiana et al., 2017) and alternaria (deshmukh et al., 2015) have been reported to have antibacterial activity against pneumonia bacteria. this study revealed that k. pneumoniae and s. pneumoniae were the first studies reported for c. velox showing a very high sensitivity to the bactericidal category. the use of ethyl acetate solvent was proven to be able to dissolve the antimicrobial active compounds effectively from cladosporium spp. although (singh et al., 1994) proved that methanol compounds extracted the antibacterial e. coli and s. aureus with lower mic. antimicrobial activity of cladosporium spp. most have been tested in crude extract form, but some researchers have reported pure fractions or compounds such as: cyclo (phe-pro, cladopsorin, methyl ether fusarubin). the polyketide derivative of cladosporium is known as cladosporin with mic = 0.1 against e. coli (hoepfner et al., 2012). in this study, it was known that the mic value was 0.08 using the main compound of the c. velox metabolite and was characterized by ir spectrum, including the aromatic compound (examinati et al., 2018). 5. conclusion this research has been able to determine molecularly the test bacteria as cladosporium velox. the results of sensitivity evaluation of the bacteria showed that the crude extract and column fraction of c. velox were bactericidal 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(2007). phylogeny and ecology of the ubiquitous saprobe cladosporium sphaerospermum, with descriptions of seven new species from hypersaline environments. studies in mycology, 58, 157-183. https://doi.org/https://doi.org/10.3114/sim.2007. 58.06 zhao, y., & talha, m. (2021). evaluation of food safety problems based on the fuzzy comprehensive analysis method. food science and technology. https://doi.org/https:/doi.org/10.3114/sim.2007.58.06 https://doi.org/https:/doi.org/10.3114/sim.2007.58.06 agbioforum, 24(1): 13-29. ©2022 agbioforum rice farmers’ perception and determinants of climate change adaptation measures: a case study in vietnam le phuong nam viet nam national university of agriculture (vnua), ha noi, viet nam email: lephuongnam87@gmail.com nguyen dang que * national academy of public administration (napa). ha noi, viet nam email: dangquenapa@gmail.com nguyen van song viet nam national university of agriculture (vnua), ha noi, viet nam email: nguyensonghua@gmail.com tran thi hoang mai vinh university (vu), vinh city, vietnam email: hoangmaikkt@gmail.com nguyen thi minh phuong vinh university (vu), vinh city, vietnam email: minhphuongn78@yahoo.com nguyen thi xuan huong viet nam national university of forestry (vnuf), ha noi, viet nam email: xuanhuongfuv@gmail.com nguyen cong tiep viet nam national university of agriculture (vnua), ha noi, viet nam email: nctiep@vnua.edu.vn tran ba uan dien bien technical economic college, dien bien, vietnam email: bauandb@gmail.com * correspondence: nguyen dang que email: dangquenapa@gmail.com the study used mann kendall's and sen's slope tests to elicit rice farmers' perceptions of climate change due to extreme weather occurrences and compared them to hydrometeorological data. according to the findings, temperatures increased by 0.4 degrees during the last 35 years. while rainfall has increased, the pattern has been difficult to discern. the test results corroborated farmers' perceptions of increased heat spells, but rainfall frequency and intensity vary and are difficult to anticipate. three adaptation strategies are frequently employed in the nong cong district: adjusting the seasonal calendar to alter transplanting and harvesting timing; increasing fertiliser and pesticide application; and changing variety to shorttime kinds. due to the interdependence of adaption techniques, the study used a multivariate probit model. the regression findings indicated that several relevant variables influence the decision to apply adaption methods. numerous policy ideas for enhancing adaptation to climate change can be derived from the results of this study. district governments must improve their capacity to forecast weekly weather and train how to adapt production to climate change. key words: adaptation climate change measures, multivariate probit model, farmers’ perception. 1. introduction the output of paddy of viet nam has been increased from 16.4 million tons in 1987 to 50.4 million tons in 2015, with average food per capita doubling from 275 kg/person (1985) to 550 kg/person (2015). exports of agricultural, forestry and fishery products in 2017 reached usd 36.7 billion, an increase of 14.05% over 2016 (nguyen van song et al., 2020). however, aagriculture is vulnerable to climate change due to its reliance on natural circumstances. warming has a detrimental effect on crops, particularly in low-latitude developing nations (mendelsohn, 2009), threatening food security and increasing agricultural production costs (wheeler & braun, 2013). (alboghdady & el-hendawy, 2016; joshia, 2013; kakumanu, kuppanan, ranganathan, shalander, & amare, 2016). this indicates that climate change and longterm economic objectives are inextricably linked (huq, reid, & murray, 2006; stern & stern, 2007). farmers had little access to detailed meteorological and hydrological data; they perceived only changes in temperature and precipitation. simultaneously, farmers have observed the effects of climate change solely through extreme weather occurrences and have concluded that these changes have influenced agricultural production (asare-nuamah & botchway, 2019; debela, mohammed, bridle, corkrey, & mcneil, 2015). according to the intergovernmental panel on climate change (ipcc, 2007), identifying adaptation measures and coping with climate change's adverse repercussions enables the pursuit of good possibilities without a climate window (e.g., land use replanning, infrastructure construction). additionally, adaptation mitigates the negative consequences of climate change and capitalises on opportunities created by changing weather and climate variables (maddison, 2007; ndamani & watanabe, 2016; uddin, bokelmann, & entsminger, 2014). adaptation also boosts agricultural output and contributes to the sustainability of agricultural development (roco, bravoureta, engler, & jara-rojas, 2017). mailto:lephuongnam87@gmail.com mailto:dangquenapa@gmail.com mailto:nguyensonghua@gmail.com mailto:hoangmaikkt@gmail.com mailto:minhphuongn78@yahoo.com mailto:xuanhuongfuv@gmail.com mailto:nctiep@vnua.edu.vn mailto:bauandb@gmail.com mailto:dangquenapa@gmail.com agbioforum, 24(1), 2022 | 14 nam, que, song, mai, phuong, huong, tiep and uan. — rice farmers’ perception and determinants of climate change adaptation measures according to the annual social-economic report (committee, 2020), the nong cong district in vietnam has a natural area of 28,700ha, of which over 14,000ha is agricultural land. agriculture accounts for 25% of the district's total income. with an average rice yield of 6 tons/ha, it is one of thanh hoa province's largest riceproducing districts. in recent years, agricultural output employed up to 80% of the worker force. however, meteorological problems grow problematic when unpredictable rainfall and temperature patterns are present. as a result, extreme weather occurrences (symptoms of climate change) harm agricultural production in nong cong province. due to insufficient awareness and other problems, a tiny number of farmers continue to adopt adaptation strategies. the purpose of this study was to elicit farmers' perceptions of the signs and consequences of climate change. farmers' views of the current situation were then compared to real meteorological data to determine the extent to which farmers observed and understood the current situation. additionally, adaptation strategies in response to a changing climate were discovered and the factors determining their implementation. 2. literature review climate change has had extensive ecological and systemic consequences, changing global average temperatures precipitation rates, and generating an alarming rise in sea levels, among other things (gamage, pearson, & hanna, 2017). these impacts are most noticeable in southeast asia's vulnerable countries, where climate change diminishes crop yields, farmer income, and food supplies (reidsma, ewert, oude lansink, & leemans, 2008). climate change endangers agriculture in developing countries and impairs farmers' lives (jellason, baines, conway, & ogbaga, 2019; paudel et al., 2020; rondhi, fatikhul khasan, mori, & kondo, 2019). climate change contributes to extreme weather events such as heat waves, droughts, and floods. due to inadequate infrastructure and rapid population increase (banerjee, 2015), these consequences can harm agricultural productivity, soil quality, crop diseases, farmers' economies, and food security (fahad & wang, 2018; iqbal et al., 2020; liverpool-tasie & parkhi, 2021). numerous adaptation techniques are applied, including crop diversification, pesticide and fertiliser adjustment, increased water conservation, diversification of farming activities, and smart farming at the family level (fahad & wang, 2018; mustafa et al., 2017). (abegunde, sibanda, & obi, 2020). however, adaption methods must be implemented following the magnitude of climate change consequences and farmers' opinions (mustafa et al., 2017; rondhi et al., 2019). while much research concentrates exclusively on analysing adaptation measures, the analysis of adaptive decision-making is also a critical topic to investigate (etana, snelder, van wesenbeeck, & de cock buning, 2020). perception, intention, and adaptation are all stages of this process (mustafa et al., 2017). climate and weather change perceptions, particularly perceptions of rising temperatures and precipitation, are irregular in frequency and severity, making them more difficult to predict (ayanlade, radeny, & morton, 2017; hundera, mpandeli, & bantider, 2019; rakgase & norris, 2015; sahu & mishra, 2013; tesfaye & seifu, 2016). according to the study, over 89% of farmers feel that the temperature is rising. more than 90% say that rainfall has changed significantly (saguye, 2017). this finding is consistent with the study (gbetibouo, 2009), which examined perceived changes in temperature and rainfall. however, only approximately 63% of families feel climate change and sustainable agricultural output are beneficial. weather information is critical for understanding climate change perceptions. the more information on weather and climate, the more likely people will agree on the effects of climate change (amadou, villamor, attua, & traoré, 2015; ochenje, ritho, guthiga, & mbatia, 2016). farmers' perceptions are critical for adaptation in smallscale agriculture (desquith & renault, 2021); farmers employ a variety of adaptation strategies to mitigate the risks associated with the effects of climate change on agricultural production (mustafa et al., 2017; vo, mizunoya, & nguyen, 2021). we employed econometric models to analyse the influencing elements. several studies have used the ordered probit model to assess farmers' awareness of the impact of climate change (rondhi et al., 2019), the generalised ordered logit model to consider farmers' adoption of sustainable agricultural practices (abegunde et al., 2020), and the binary logistic regression model to compare farmers' perceptions (paudel et al., 2020). additionally, studies (jellason et al., 2019) and factor analysis (iqbal et al., 2020) demonstrate the elements affecting perception transition from perception to adaptive intention. heckman's probit model was also used to investigate the relationship between the two stages of perception and adaption (aihounton, yegbemey, & yabi, 2013). adaptation solutions are critical for mitigating climate change's adverse consequences (hassan & nhemachena, 2008; kabubo-mariara & karanja, 2007). adaptation strategies are changes made to the production system to mitigate the losses caused by extreme weather events while pursuing other advantageous opportunities (moser & ekstrom, 2010). however, adaption techniques can be either shortor long-term and take on various shapes, either locally or globally. they may serve multiple purposes, including mitigating the detrimental consequences of climate change and advancing other socio-economic development objectives (smit & pilifosova, 2003). numerous research has been conducted on farmers' adaptability to climate change (alam, alam, & mushtaq, 2016; alauddin & sarker, 2014). farmers' adaptation techniques to climate change have been documented in previous research (amare & simane, 2017; dasmani, darfor, & karakara, 2020; gebru, ichoku, & phil-eze, agbioforum, 24(1), 2022 | 15 nam, que, song, mai, phuong, huong, tiep and uan. — rice farmers’ perception and determinants of climate change adaptation measures 2020). however, earlier research has documented the various adaption techniques but not their interaction (tessema, joerin, & patt, 2019). socio-economic characteristics and agricultural production factors such as education, irrigation, extension access, farmer association membership, land tenure, and credit influence how farmers perceive and respond to climate change (abegunde et al., 2020; aihounton et al., 2013; rondhi et al., 2019; van song, cuong, huyen, & rañola, 2020). additionally, risk aversion influences the choice of adaptation forms (iqbal et al., 2020; van song et al., 2020), or the previous year's adaptation strategy influences the current adaptation strategy. additionally, biophysical parameters influenced farmer perception (paudel et al., 2020). additional drivers include the number of farm labourers, income levels, community organising participation, and perceptions of the effectiveness of adaption techniques (abegunde et al., 2020; vo et al., 2021). young farmers are more conscious of the negative repercussions of climate change, whereas more educated farmers can comprehend and adjust more effectively. however, households with higher incomes frequently exhibit less awareness, as they retain the financial potential to expand output (chingala, mapiye, raffrenato, hoffman, & dzama, 2017). additionally, property rights and subsidies influence farmers' perceptions and adaptation. however, perception cannot predict actual adaptation (etana et al., 2020), as climate change adaptation measures depend on each farmer's ability and the real effects of climate change (mfere, 2021). adaptation barriers have also been identified, including insecure land ownership and a scarcity of labour, credit, and information (etana et al., 2020; mfere, 2021). perception and adaption occur over an extended period and are constantly altered (mustafa et al., 2017). as a result, methods were also presented to raise awareness, allowing for more adaptable decision-making (jellason et al., 2019). several solutions have been offered, including educating women on the effects of climate change and expanding routes for agricultural extension services (rondhi et al., 2019). adaptation methods such as the use of droughtand pest-tolerant cultivars, as well as improved water management, are also promoted (banerjee, 2015; paudel et al., 2020). while others advise enhancing farmer training and expanding the operations of community organisations (vo et al., 2021), providing farmers with access to agricultural inputs, information, and extension services, and implementing measures to stabilise output prices (fahad & wang, 2018; iqbal et al., 2020). climate change also affects the market supply of agricultural products. as a result, governments must also address other actors in the value chain to ensure price stability in the face of imminent climate change challenges (liverpool-tasie & parkhi, 2021). 3. research methods 3.1 study area figure 1 is a map showing the location of the study area, which is nong cong district in thanh hoa province, vietnam. specifically, in figure 1, quadrant (a) is the map of vietnam and the location of thanh hoa province. quadrant (b) is thanh hoa province and location of nong cong district which is shown as the red point. quadrant (c) is nong cong district, where this is the study area. quadrant (d) is 2 communes of nong cong district (thang long and thang binh), these are the two representative communes that the study selected, to collect data on farmers' perception of climate change and adaptation measures in nong cong district. nong cong is a delta district of thanh hoa province, and the district centre is 28km southwest of thanh hoa city. the area’s geographical coordinates are from 105068’ – 106063’ east longitude, from 21048’ – 21070’ north latitude. the district has 28 communes and one town. it has an area of 292.5 km², and the population in 2018 was 271,250. moreover, over 70% of the population are working in the agricultural sector. figure 1: map of the study (a) (b) (c) (d) agbioforum, 24(1), 2022 | 16 nam, que, song, mai, phuong, huong, tiep and uan. — rice farmers’ perception and determinants of climate change adaptation measures the nong cong district has been severely impacted by extreme weather occurrences, incurring losses of $0.304 million in 2017 and $1.6 million in 2018 due to 1,000 hectares planted to rice and vegetables (committee, 2020). however, the damage caused by climate change has a serious impact on the district, as over 80% of the district's population is reliant on agriculture. additionally, previous research has demonstrated that climate change negatively impacts agriculture. 3.2 data collection this study incorporated both primary and secondary sources of data. several secondary data sources were consulted, including information on the research area's socio-economic situation and agricultural production. additionally, information on the annual socio-economic status of the community and others pertinent to the research topic was acquired. at the moment, the nong cong district lacks a hydrometeorological station. as a result, hydro-meteorological data were gathered at the nhu xuan station (19038' north latitude 105034' east longitude). although the nhu xuan meteorological station is located outside the district of nong cong, it collects weather and meteorological data for nong cong. temperature data collection includes monthly average temperatures and rainfall for the 35 years from 1985 to 2019. pre-testing of the questionnaire was conducted to ascertain the data to be collected and to find common adaption measures in thang long and thang binh communes. enumerators were taught the study's aims and questionnaire before data collection. finally, in january 2021, the survey was conducted. the survey was undertaken to elicit information about extreme events that occurred at the research locations, rice production throughout the spring summer crop season (from january to may), and summer-autumn crop season (from june to august) (from may to september). primary data were collected by conducting in-depth interviews with farmer households using a pre-designed questionnaire. the study collected data from two communes in nong cong: thang long and thang binh. these are the two communes in the district with the most agricultural land, including rice production. rice is a component of the agricultural production of the selected farming households. the number of respondents was equivalent to the total number of farming households in the two communes. the sample size for respondents was determined using a basic proportions approach (yamane, 1967). the equation was used to calculate the representative sample size. sample size = n 1+n(e)2 . where n is the population size, and e is the level of precision (sampling error). thang long commune has approximately 2,100 farmer households (division, 2020), while thang binh commune has about 1,400 farmer households (division, 2020). as a result, the total sample size was 189 agricultural families using the sampling procedure described above and a 10% sampling error. however, the study examined an additional 71 farming homes to ensure the data was valid. additionally, farmers were picked under the direction of the village head and utilising the commune's registered farming households. following that, primary data were gathered by a thorough home survey of 260 randomly selected farming households in the two communes. data on farmer characteristics, farm characteristics, and rice output were collected to mitigate the adverse effects of weather. additionally, data on farmers' understanding of the effects of climate change on agricultural production and their adaption strategies were acquired. 3.3 data analysis 3.3.1 mann kendall test for consideration of trend the mann kendall (mk) is a nonparametric test that sorts (rank) data to test for the tendency (trend) (kendall, 1948; m.g., 2008; mann, 1945). this method tests the h0 hypothesis of the lack of trend versus the ha hypothesis that a trend is present, whether upward or downward; it depends on the sample size and time-series variation. when this period’s value is greater than the previous period, the mk test gets a value of +1. otherwise, it takes a value of -1. then, it takes the cumulative values for all of the periods. the formula for the mann kendall test is expressed as follow: t = ∑ ∑ .an j=i+1 n−1 i=1 ; with a = (xj − xi ) where: n is total of time point, i is the time point at ith, j is the time point at jth, and j > i xi is data value at time point ith x𝑗 is data value at time point jth if (xj − xi ) > 0 then a have value of +1 if (xj − xi ) < 0 then a have value of -1 if (xj − xi ) = 0 then a have value of 0 when the number of time points is greater than or equal to ten (n ≥ 10), the mk test is then characterized by a normal distribution having a mean e(t) equal to zero and variance equated (ma, he, xu, van noordwijk, & lu, 2014), as: variance(t) = δt 2 = n(n − 1)(2n + 5) 18 − ∑ tm(tm − 1)(2tm + 5) w m=1 18 where w is the number of the tied groups in the sample data (data point has same value will be bunched into one group), and tm is the number of ties in the mth tied group. agbioforum, 24(1), 2022 | 17 nam, que, song, mai, phuong, huong, tiep and uan. — rice farmers’ perception and determinants of climate change adaptation measures for example, set of value (8, 9, 0, 9, 0, 9), so that n = 6, w = 2, t1 = 2 for the value of 0, t1 = 3 for the value of 3. if t > 0, we have d = t−1 √variance(t) if t = 0, we have d = 0 if t < 0, we have d = t+1 √variance(t) when d > 0, it indicates the upward and downward trends of d > 0. next, d value is compared to the standard normal distribution table (z-table) to compare the statistical significance. if the absolute value of d value is greater than the tabular z, then reject h0, which means there is a trend in the data (ahmad, tang, wang, wang, & wagan, 2015). 3.3.2 sen’s slope estimator for consideration of trend magnitude sen’s slope is then calculated further to examine the magnitude of the trend (sen, 1968). if sen’s slope value is positive and statistically significant, there is an increasing trend. the model f(x) can be described as (drápela & drápelová, 2011): f(x) = ax+b the slope, a, of between two data points can be expressed as: ai = xg −xh g−h for g= 2, 3, ..., m and h = 1, 2, …., m-1. we have (a1 , a2 , . . . , am). xg is data year g, xh is data year h (g>h) if there is only one data point for a specific year, then m slope estimates (m = m(m−1) 2 ). where m is the number of time points. the m values of the slope are sorted from lowest to highest value (alowest value, . . . , ahighest value). then, sen’s slope is the median slope inside m values. sen’s slope value, amed, is computed as: amed = { am+1 2 if m is odd 1 2 (am 2 + am 2 +1 )if m is even if sen’s slope value is positive, it shows an increasing trend and a decreasing trend if it is negative. the amed value of 0 implies no trend, which means that the data have a constant trend over time. sen’s slope value, amedis tested by a normal distribution with a two-sided test (partal & kahya, 2006). 3.3.3 multivariate probit model for factors influence to use adaptation measures a random utility model describes a choice decision in which individual 𝑖 has a set of m choices from which to choose (mcfadden, 1978). when applied to adaptation decision, farmer i will choose an adaptation strategy if its expected benefits are positive. these benefits include increased farm performance and well-being of farmers, which are demonstrated by latent variables. when considering an adaptation strategy (mth) to cope with climate change, farmers’ utility when adaptation strategy m is not implemented is u0 and um when implemented. in agricultural production, farmer i will choose an adaptation strategy m, when uim − ui0 > 0, set zim = uim − ui0, so zim = uim − ui0 > 0 or zim > 0. this means farmers that implement adaptation strategy m when the net benefit, zimis positive. the net benefit (zim) from strategy m, a latent variable, is determined by observable and unobservable factors. latent variables are not directly observed but are derived from visible variables. observed variables, including variable yim and independent variables, determine the relationship between latent variables zim and variable yim. latent variables are the expected benefits (increase productivity, increase profit) from adaptation strategies. the general model for net benefit is: zim = xim ′ βm + εim (*) where m is adaptation measures, m=1, 2, ..., m i = 1, … , n are the farmers considered in the study βm = (β1 , … , βm) ′ is a matrix of coefficients, to be estimated; 𝑥𝑖𝑚 ′ is a vector of explanatory variables. ε m x 1 = ( εi1 εi2 εim) ~mvn (0, σ) im ~ mvn(0,) as a multivariate normal distribution with a mean of zero and variance, σ, is mxm correlation matrix. correlation matrix σ m x m = ( 1 ρ12 … ρ1m ρ21 1 … ρ2m . . . . ρm1 1 ) e(εm|x1 , … , xm) = 0 var(εm|x1 , … , xm) = 1 cov(εk εm|x1 , … , xm) = ρkm the coefficient in the correlation matrix is denoted by 𝜌 the response variables in the multivariate probit model are usually binary. let yim = (yi1 , yi2 , . . . . , yim)′ (1 ≤ i ≤ n) denotes the collection of observed binary 0/1 responses on the ith farmer. yim has a value of 0 or 1, depending on the value of zim yim = { 1 if zim = xim ′ βm + εim > 0 0 otherwise (**) agbioforum, 24(1), 2022 | 18 nam, que, song, mai, phuong, huong, tiep and uan. — rice farmers’ perception and determinants of climate change adaptation measures this means that a farmer will use an adaptation strategy m, yim = 1, if the expected net benefits from adaptation strategy m is positive (zim greater than 0). farmers will not choose an adaptation strategy when the expected benefits of the adaptation strategy are zero or negative. m = 1 and 2 are probit and biprobit, respectively (or univariate and bivariate probit models). the advantage of using multivariable probit regression is that yim will indicate the outcome selected from the m choices simultaneously. the diagonal values of the correlation matrix are normalized to 1. in the correlation matrix, the off-diagonal values show the unobserved relation between the observations in adaptation strategies mth and jth (guan, ye, shi, & zou, 2019). the most popular simulation method for simulated maximum likelihood is the geweke– hajivassiliou–keane (ghk), which estimates parameters under the assumption of multivariate normal distribution (nhemachena, hassan, & chakwizira, 2014). all estimations were calculated by stata software, version 14.0 (statacorp, 2015). multivariate probit model in this study: yadaptation = β0 + β1 edu + β2 age + β3 gender + β4 farmexp + β5 farmsize + β6 farminc + β7 farmlabor + β8 training + β9 membership + β10awinfo + β11credit+ ε the variables for the multivariate probit are defined in error! reference source not found. below: table 1: description of the variables variable label description measure dependent variables yadaptation adjustment for seasonal calendar 0 = if famer did not use this adaption measure 1 = if famer use this adaption measure application of more fertilizers and pesticides 0 = if a farmer did not use this adaption measure 1 = if farmer use this adaption measure change of variety 0 = if famer did not use this adaption measure 1 = if famer use this adaption measure independent variables farmer’s characteristics edu farmer’s education years in school age farmer’s age year gender farmer’s gender 0=female 1= male farmexp farming experience years of farming experience farm’s characteristics farm size cultivated area sao (one “sao” is equal 500m2) farming agricultural income/year vnd million/year farm labor number of agricultural labour in farmer household number of agricultural labour other factors training participation in an agricultural training class agricultural training attendance membership membership in farmer’s association (social factor) 0 = if farmer is not a member of any farmer’s association 1= if farmer is a member of any farmer’s association. awinfo access the weather forecast information of 7 – 10 days. 0 = if farmer has not accessed 7-10 days weather forecast. 1 = if farmer has accessed weather forecast of 7-10days. credit access to credit 0 = if farmer did not borrow money from any source 1 = if farmer borrowed money from any source. 4. results and discussion 4.1 general characteristics of respondents 4.1.1 descriptive statistics of variables table 1 is the general information on the surveyed farmers. this study was conducted in two agricultural communes: thang long and thang binh in nong cong district. in these communes, there are two rice seasonal crops in these agricultural areas. according to the results of data analysis, farmers have an average of 10 schoolingyears, average age of 48, production experience at 22 years, average rice area per household of 7.74sao (equivalent to 0.38 ha/household). the average income from agricultural production of the household is 93 vnd million/year (about 4025 usd/year), the average number of agricultural labor/households of 2.88 labors. every year, each household attends an average of 2.23 training classes related to agriculture. the results also show that 82% of households in farmers' associations, 68% of farmers watch weather forecast information for 7-10 days, 75% of farmers have loans. according to the t-test results, characteristics of farmers are not different between the two communes, therefore the characteristics of farmer households are similar in these two communes. thus, surveyed farmers from two communes are used as whole sample for study the perceptions and adaptation measures in nong cong district. agbioforum, 24(1), 2022 | 19 nam, que, song, mai, phuong, huong, tiep and uan. — rice farmers’ perception and determinants of climate change adaptation measures 4.2 sources of weather information figure 2 shows the source of weather information that farmers use to get information about weather forecasts. the results show that there is a difference between farmers using climate change adaptation measures (adapters) in rice production and farmers not using adaptation measures (non-adapters). adapters gained access to weather information at a higher rate than non-adapters. regarding weather-related information sources, 66% of adapters accessed weather information via loudspeakers, compared to 46% of non-adapters. for 40% of adapters, information was obtained through loudspeakers and talks with other farms. additionally, the results indicated that daily weather information on television, loudspeakers, and conversations with other farmers were the most important sources of short-term weather information, as these are the most immediate and accessible. on the other hand, the training programmes provide long-term weather patterns. conversations with their fellow farmers (52%) and their views and experiences with the weather were also used to determine their agricultural production activities. this shows that the farmers who monitor a lot of weather information, they take adaptive measures, to reduce losses in rice production. because weather forecast information has helped them to adjust from the time of rice planting, to adjust the time of fertilizer application and the time of harvest. 4.3 sources of information about climate change figure 3 shows the results of farmers' access to information on climate change. farmers obtained knowledge on climate change from various sources. according to 48% of respondents, they became aware of climate change through their personal experiences and observations throughout time. additionally, 62% of respondents obtained information on climate change from television shows. agriculture education (35%) was also a critical source of information on climate change. using data from these training sessions, farmers identified and evaluated the unfavourable effects of frequent extreme weather occurrences on their agricultural productivity. finally, discussions with their fellow farmers (50%) allowed them to learn about and exchange thoughts about climate change. table 1: general farm household characteristics in nong cong district variables whole sample (n=260) thang long commune (n=154) thang binh commune (n=106) compariosn mean sd mean sd mean sd diff. t-test edu (years) 10.07 1.64 10.10 1.68 10.02 1.58 0.09 0.6821 age (years old) 48.10 6.06 48.11 5.72 48.09 6.56 0.02 0.9833 gender (rate of male) 0.54 0.50 0.58 0.50 0.49 0.50 0.09 0.1660 farmexp (year) 22.35 6.06 22.21 5.74 22.55 6.51 -0.33 0.6641 farmsize (sao/household) 7.74 2.05 7.81 2.16 7.64 1.88 0.16 0.5464 farminc (vnd million/year) 93.35 1.60 95.22 2.23 90.62 2.19 4.60 0.1572 farmlabor (labor) 2.88 0.78 2.88 0.78 2.88 0.78 0.00 0.9940 training (class) 2.23 1.51 2.19 1.49 2.28 1.54 -0.09 0.6199 membership (% respt) 0.82 0.39 0.82 0.39 0.81 0.39 0.01 0.8891 awinfo (% respt) 0.68 0.47 0.71 0.45 0.62 0.49 0.09 0.1214 credit (% respt) 0.75 0.43 0.73 0.44 0.77 0.42 -0.04 0.4681 source: field survey, 2021 note: diff. is the mean difference value between two communes. and ns is non-statiscal significant. sd is the standard deviation figure 1: sources of weather information 100 66.06 42.42 61.21 100 46.32 37.89 36.84 0 20 40 60 80 100 120 daily weather news on tv loudspeaker training class conversation with other famers (%) adapters nonadapters agbioforum, 24(1), 2022 | 20 nam, que, song, mai, phuong, huong, tiep and uan. — rice farmers’ perception and determinants of climate change adaptation measures additionally, it can be assumed that adapters obtain knowledge about climate change through television, observation, and interactions with other farmers. adapters made adjustments to their agricultural production based on this information. training classes (41%) were also a significant source of climate change-related information for adapters. figure 2: sources of information about climate change even the adapter households themselves have accumulated more experience on climate change and have access to many sources of information to monitor climate changes, thereby adjusting in rice production. because better understanding of climate change has led to the decision to use adaptation measures such as changing short-term rice varieties to limit weather risks, adjust quantity of fertilizers, pesticides or adjust the time of sowing and harvesting. the findings indicate that farmers have a variety of sources of information about climate change, although the majority of these sources are informal. as a result, developing and strengthening official climate change information channels is necessary, such as agricultural training via extension and village loudspeakers. 4.4 farmers’ perceptions of extreme weather events 4.4.1 farmer’s perception on temperature and precipitation change figure 4 shows the extreme weather phenomena related to temperature and farmers' awareness of these phenomena. the manifestations of climate change through temperature such as the temperature rises, the number of days/heat wave increased, number of cold days/waves increased. as results of comparison, adapters have a faster rate of temperature perception. specifically, 84% of adapters stated that the temperature increases, compared to 44% of non-adapters. the percentage of adapters that perceive temperature change is much greater than that of nonadapters, the main reason indicated is that adapters access multiple sources of climate change information as discussed above, and direct influence of temperature on rice production output has helped farmers to recognize the manifestations of climate change through temperature changes. similarly, in figure 4 shows that 84% of adapters perceived a rise in extreme weather events, compared to 46% of non-adapters. it is 84% of adapters stated that extreme weather events are even more difficult to predict, a larger percentage than non-adapters (45%). thus, being aware of weather variations enables adaptations to adjust agricultural output actions. farmers are aware of fluctuations in temperature and the occurrence of extreme events such as many days with heat waves leading to drought, lack of irrigation water for rice, or prolonged cold spells, the rice may die and have to be replanted. with extreme weather events and difficult prediction, farmers respond by adjusting the amount of water in the field or adjusting the amount of fertilizer. figure 4: farmers’ perceptions of the changes in temperature in nong cong district, thanh hoa province, vietnam, 2020 57.58 71.52 40.61 55.15 30.53 46.32 27.37 42.11 0 20 40 60 80 own observations tv/media agricultural training conversation with other famers (%) adapters nonadapters 84.85 87.88 89.09 84.85 84.85 44.21 42.11 43.16 46.32 45.26 0 10 20 30 40 50 60 70 80 90 100 the temperature rises the number of days/heat wave increased number of cold days/wave increased extreme weather events increased it is increasingly difficult to predict for extreme weather events (%) adapters nonadapters agbioforum, 24(1), 2022 | 21 nam, que, song, mai, phuong, huong, tiep and uan. — rice farmers’ perception and determinants of climate change adaptation measures figure 5 compares adapter and non-adapter perceptions of climate change through rainfall change and storm changes. the results show that 95% of farmers stated that storms in recent years ended late. when asked about their perspective of rainfall, 91% said that the frequency of rain varies from year to year, while 59% stated that rainfall has increased in recent years. similarly, 91% stated that the intensity of the rain had risen, resulting in floods and inundation. this has resulted in agricultural productivity losses or damage. additionally, most (90%) of adapters claimed the rainy and stormy seasons arrived sooner than in the past. over 90% reported that the severity and frequency of rain have also altered. farmers were obliged to adapt their agricultural produce due to these developments. reasons for the higher rates of adapter awareness of changes in rainfall and storms, on the grounds that adapters have more information about climate change and in adapter households that contain households have also experienced losses due to rain and storm events causing rice production. figure 5: perception about rainfall and storm changes between adapters and non-adapters,in nong cong, thanh hoa, vietnam, 2020 4.5 farmer’s perception on effect of extreme weather events on crop production according to figure 6, 70% of adapters recognised climate change as the source of yield loss, while 69% claimed that production costs increased due to extreme weather occurrences. adapters implemented adaption techniques before the crop season to reduce damage and maximise profit. figure 6: perception on impacts of climate change to crop production between adapters and non-adapters in nong cong district, thanh hoa province, vietnam, 2020 according to farmers, rising temperatures increased the prevalence of pests and diseases, consequently increasing the cost of production. farmers must change their agricultural production in response to these perceptions. to begin implementing adaptation strategies, farmers must first understand the implications of climate change, which they can combine with their years of practical experience. farmers who recognise that climate change may 95.15 90.91 86.67 89.7 59.39 12.73 27.88 90.3 91.52 46.32 46.32 41.05 48.42 29.47 5.26 16.84 49.47 45.26 0 10 20 30 40 50 60 70 80 90 100 the storm season started earlier the storm season ends later the rainy season is earlier the rainy season ends late rainfall increases rainfall decreases rainfall remain rain intensity increased rainfall frequency changes % adapters nonadapters 16.36 70.91 79.39 66.06 84.24 7.37 34.74 34.74 29.47 43.16 0 10 20 30 40 50 60 70 80 90 plants died reduced yield increased pests and diseases reduce of water for irrigation increase the cost of using inputs (%) adapters nonadapters agbioforum, 24(1), 2022 | 22 nam, que, song, mai, phuong, huong, tiep and uan. — rice farmers’ perception and determinants of climate change adaptation measures negatively influence output and profit are more likely to adjust to mitigate the damage caused by climate change consequences. 4.6 farmer’s perception compared to meteorological data a mann kendall test was used to determine the presence of a trend in various meteorological data sets. the mk test yielded a positive and substantial result, implying an increasing trend in nong cong's annual average temperature (table 3). the mann kendal trend test result indicates that the yearly maximum average temperature tends to increase, confirming that the temperature is rising. however, the annual lowest temperature was not statistically significant, suggesting that it lacks a discernible pattern. the average precipitation result was positive and statistically significant, showing that the yearly rainfall average increased with time. table 3: mann kendall trend test of annual temperature and precipitation indicators number of years kendall’s tau p-value average annual temperature 35 0.3227*** 0.0067 average annual temperature maximum/year 35 0.2840** 0.0169 average annual temperature minimum/year 35 0.0017ns 1.000 average precipitation /year 35 0.2000* 0.0938 note: ns means non-significant when p-value > 0.1, ***, ** and * means significant at the 1%, 5% and 10% probability levels, respectively. table 4 show result of using sen’s slope test to examine the change in temperature and rainfall over the past 35 years in nong cong district. for this reason, the mann kendall test only shows the trend in change, while the sen slope's test will confirm whether this trend is really changing or not. thus, the study examined the magnitude of changes in the temperature trend in nong cong using sen's slope analysis. the findings indicated that both the yearly average and maximum temperatures are increasing. however, there is no discernible trend in the average annual lowest temperature. these findings corroborate farmers' observations and opinions that temperature has increased over time, hurting agricultural production and livelihood. as a result, farmer awareness is consistent with observed facts. on the other hand, sen's slope value for the average annual rainfall was positive but not significant, indicating that rainfall fluctuations are unpredictable. thus, in nong cong district, the average rainfall does not change over the years, however, rain intensity is unlike the years and difficult to predict, easily causing floods, inundation, and damage to production. rice production. table 2: sen’s slop test for temperature and precipitation indicators number of years sen’s slope p-value average annual temperature 35 0.3227** 0.0120 average annual temperature maximum/year 35 0.2840*** 0.0050 average annual temperature minimum/year 35 0.0017ns 0.9900 average annual precipitation 35 0.2ns 0.126 note: ns means non-significant when p-value > 0.1, ***, ** and * means significant at the 1%, 5% and 10% probability levels, respectively. 4.7 determinants of climate change adaptation measures 4.7.1 adaptation measures adjustment of the seasonal calendar: the district administration provides a calendar for farmers to sow seeds and transplant rice at the start of each crop. when seeding and transplanting rice under extreme weather conditions, there may be cold spells (spring-summer season) or heat waves (summer-autumn season). farmers responded by delaying transplanting during the springsummer rice-producing season to february to prevent cold periods. additionally, they harvest early to avoid rain and flooding in late may. at the same time, farmers would transplant earlier in the summer-autumn season, typically in early june, to prevent the rain. additionally, farmers harvest early, typically midto late september, to escape significant rain and storms. application of more fertilizers and pesticides after extreme weather events: additionally, the study examined whether farmers would increase their usage of fertilisers and pesticides in response to harsh weather occurrences. for instance, during the rice harvest's cold season, producers employed plastic for seedlings or increased manure, phosphate fertiliser, and pesticide application. at the same time, farmers tend to add green waste and spray insecticides during hot waves to prevent disease. change of variety. another method considered in this study is variety substitution, most notably for short-term and resistant types. during the spring-summer season, the cropping time for short-term rice cultivars is 120-125 days. as a result, farmers can avoid the cold at the start of the season and the late rain. on the other side, during the summer-autumn season, short-term rice types are harvested between 95 and 102 days before the rainy or stormy season. table 5 shows the number of farmers using each adaptation measure, among those who have adapted, 146 adapter (88% of the farmers) changed the seasonal agbioforum, 24(1), 2022 | 23 nam, que, song, mai, phuong, huong, tiep and uan. — rice farmers’ perception and determinants of climate change adaptation measures calendar as an adaptation strategy. it was found that the adjustment of seasonal calendar ranked as the most important strategy. meanwhile, 143 of the farmers (86% of the farmers) employed additional inputs such as fertilizer, pesticides, the use of anti-cold nylon for seedlings as an adaptation response. this was followed by the increased application of fertilizers and pesticides after extreme weather events ranked. finally, the change of varieties was the third important strategy employed by farmers. moreover, 140 adatpers (around 85% of the farmers) shifted to short-term, high tolerant varieties as these were more resilient to bad weather condition. table 3: adaptation measures or farmers in crop production in nong cong district, thanh hoa province, vietnam, 2020 adaptation measures whole sample adapters nonadapters adjustment for seasonal calendar 146 114 application of more fertilizers and pesticides 143 117 change of variety 140 120 farmers were questioned about reasons other than climate change for implementing a certain adaptation approach. additional causes are expansion, pest or disease control, and market shifts. table 6 is the result of the wilcoxon signed-rank test, used to confirm the adaptation measures farmers use are driven by climate change. the wilcoxon signed-rank test was used to assess the scores for each adaptation measure for each driver. apart from climate change, farmers adjust for various reasons, including extension, disease and pest, and market considerations such as demand and pricing. farmers assigned a value to each cause in determining whether to employ an adaptation strategy. scores are given on a three-point scale, with three equaling high, two equaling medium, and one equaling low. following that, the rationale for employing each adaptation measure was compared. the wilcoxon signed-rank test's null hypothesis is that there is no difference between climate change driver and other driver on farmers' decision to employ a given adaptation measure. table 4: results of the wilcoxon signed-rank test farm adaptive strategies z value (h0: each adaptive strategy, the influence by climate change is not different the influence by other driver) information from extension disease and pest change of input cost adjustment for seasonal calendar 7.026*** 5.912*** 6.270*** applying more fertilizers and pesticides because of extreme weather events 6.433*** 0.177ns -5.214*** change of variety -0.442ns 6.395*** 5.458*** *** and ns: level of statistical significance 1% and not significance values in bold are where climate change is rated to have a higher influence than the other driver the results indicated that climate change was the key driver for implementing this method for the seasonal calendar adjustment. as a result, farmers' seasonal calendars were altered primarily due to variations in weather and climatic circumstances. additionally, a significant and positive coefficient is obtained when the impact of climate change versus information of extension is compared to influence farmers' decision to use additional fertilisers and pesticides. this indicates that climatic change was a more significant reason in farmers increasing their fertiliser application than extension knowledge. the coefficient was not important for diseases and pests versus climate change. the coefficient was negative and significant in change of input costs and climate change. this entails farmers applying additional fertilisers and insecticides to mitigate the adverse effects of climate change and manage pests and illnesses and adjust to increasing input costs. the choice of farmers to switch to short-term rice varieties was primarily motivated by the need to mitigate the risks associated with extreme weather events. as such, the change in rice variety resulted from climate change's effects. similarly, variation in rice varieties may be influenced by extension knowledge, as local officials may encourage planting a new type of rice. while climate change has a greater influence on farmers changing rice varieties than the other two driver. diseases and pests, change of input cost, climate change has a greater influence on farmers changing rice varieties because the coefficients are statistically significant. 4.8 factors influencing farmers’ decision to use of specific adaptation measure this study was conducted in two agricultural communities: thang long and thang binh. there are two seasonal crops and one seasonal winter for growing vegetables in these agricultural areas. about 80% of the workforce are involved in agricultural production in these two communes. based on the results (error! reference s ource not found.), farmers who adapted had more years of schooling, training courses, access to 7-10 days of weather forecast information, and a higher participation rate in farmers’ associations than non-adapters. these imply that adapters are more knowledgeable and informed about climate change and the benefits of using adaptation measures. agbioforum, 24(1), 2022 | 24 nam, que, song, mai, phuong, huong, tiep and uan. — rice farmers’ perception and determinants of climate change adaptation measures table 7: socio-economic characteristics of the study participants by adapters and non-adapters in nong cong district, thanh hoa province, vietnam, 2020 variable average (n=260) whole sample (n=260) thang long (n=154) thang binh (n=106) adapters (n=165) non adapters (n=95) adapters (n=97) non adapters (n=57) adapters (n=68) non adapters (n=38) edu (years) 10.07 10.45 9.41 10.56 9.33 10.31 9.53 age (years old) 48.10 47.76 48.69 48.07 48.18 47.32 49.47 gender (rate of male) 0.54 0.53 0.57 0.58 0.58 0.46 0.55 farmexp (year) 22.35 23.89 19.67 23.75 19.60 24.09 19.79 farmsize (sao/household) 7.74 7.87 7.51 8.01 7.46 7.67 7.59 farminc (vnd million/year) 93.35 95.85 89.00 96.92 92.33 94.31 84.01 farmlabor (labor) 2.88 2.88 2.86 2.90 2.84 2.87 2.89 training (class) 2.23 2.69 1.42 2.70 1.32 2.68 1.58 membership (% respt) 81.54 90.91 65.26 91.75 64.91 89.71 65.79 awinfo (% respt) 67.69 78.79 48.42 84.54 49.12 70.59 47.37 credit (% respt) 75.00 80.61 65.26 80.41 61.40 80.88 71.05 source: field survey, 2021 before assessing each variable, the study used the variance inflating factors to check for potential multicollinearity (vif). the mean vif value was 2.3, ranging from 5.03 to 1.07. because the vif values were less than 10, this implies that the model's independent variables are not multicollinear. table 8 is the result of running the multivariable probit model, the model results are tested for each factor affecting the decision for each specific measure. numerous elements have a substantial impact on farmers' adaption techniques selection. to begin, the educational attainment of farmers is strongly associated with their likelihood of increasing fertiliser and pesticide use and altering types. farmers that are more educated have a better understanding of which fertiliser to use and when to improve the plant's health and ability to withstand adverse weather. additionally, farmers with a better level of education have a greater understanding of variety. as a result, they are more knowledgeable about which cultivars provide the highest yields, generate the most profit, and resist adverse weather. additionally, farming expertise has a crucial role in farmers' seasonal calendar adjustment decisions. the positive coefficient indicates that the probability of farmers altering their planting schedule increases with each additional year of agricultural experience. farmers with more expertise understand how to utilise their findings to mitigate the effects of extreme weather events. this is a low-cost method based solely on historical data and present weather conditions. however, because the weather has become more unpredictable, farmers' prior experiences may be difficult to use. as a result, the human experience must be merged with current meteorological data and agricultural production techniques to improve farmers' ability to cope with bad weather situations. combining farmer experience and current information can mitigate the unfavourable effects of harsh weather and potentially boost agricultural productivity. farm wealth has a major impact on the likelihood that farmers will increase their use of fertilisers and pesticides in the aftermath of catastrophic weather events. more precisely, increased farm revenue increases the likelihood that farmers will use more fertilisers and pesticides. this makes sense, as farmers with a larger income have the financial means to invest more in inputs. by doing so, farmers reduce their exposure to possible losses caused by extreme weather occurrences and boost agricultural yields. this outcome corroborated prior research (abid, schilling, scheffran, & zulfiqar, 2016; ahmed et al., 2015). participating in agricultural training programmes such as extension classes on production practices and crop varieties enhances farmers' likelihood of altering their seasonal calendars. additionally, it has a positive and significant effect on the possibility of increasing fertiliser use and variety switching. typically, training is supplied by extension workers or through workshops sponsored by fertiliser and seed firms. these classes provide technical information on agricultural production pertinent to farmers in the nong cong district. farmers now have a solid foundation for selecting whether to apply adaption tactics due to the knowledge gained throughout this training programme. this finding is consistent with earlier research (abid et al., 2016; deressa, hassan, ringler, alemu, & yesuf, 2009; hassan & nhemachena, 2008). access to seven-day weather forecasts has a considerable effect on agbioforum, 24(1), 2022 | 25 nam, que, song, mai, phuong, huong, tiep and uan. — rice farmers’ perception and determinants of climate change adaptation measures adapting tactics such as seasonal calendar adjustment and variety modification. when farmers have forecasted weather, they can be proactive in sowing and harvesting to prevent severe cold, heat waves, and other extreme weather events. the more precise the forecast data, the more advantageous it is for farmers. while the information is free and provides major benefits to farmers, it does not include detailed weather forecasts for the nong cong district. another study confirmed this finding (trinh, rañola, camacho, & simelton, 2018). finally, farmer association participation raises the likelihood that farmers will increase their usage of fertilisers and other inputs following catastrophic weather occurrences. farmers who are members of an organisation pool their resources to purchase additional pumps in a drought. additionally, they clear the canals before the rainy season or a storm. additionally, farmer associations served as an excellent information channel via which members could exchange farming-related information, such as using organic fertilisers, insecticides, or chemical fertilisers following harsh weather occurrences. this finding is consistent with earlier research (adger, 2003; ngaruiya & scheffran, 2016). table 5: results of multivariable probit model for adaptation strategies in crop production in nong cong district, thanh hoa, vietnam, 2020 variables adjustment for seasonal calendar application of more fertilizers and pesticides change of variety coef. se coef. se coef. se edu 0.0272ns 0.075 0.1570** 0.073 0.1910** 0.074 age -0.0119ns 0.017 -0.0126ns 0.018 -0.0133ns 0.018 gender -0.0531ns 0.176 0.0805ns 0.177 0.1171ns 0.178 farmexp 0.0375* 0.021 -0.0016ns 0.02 0.0097ns 0.021 farmsize -0.0947ns 0.091 -0.0719ns 0.092 -0.0077ns 0.093 farminc 0.0131* 0.007 0.0150** 0.007 0.0043ns 0.007 farmlabor -0.0179ns 0.147 -0.1763ns 0.148 -0.0685ns 0.147 training 0.1717** 0.087 0.2404*** 0.087 0.2148** 0.087 membership 0.3764ns 0.29 0.5242* 0.291 0.1439ns 0.301 awinfo 0.3392* 0.206 0.0356ns 0.216 0.3484* 0.212 credit -0.1554ns 0.236 0.0434ns 0.233 0.1112ns 0.238 const -1.6469ns 1.057 -2.1817** 1.091 -2.5507** 1.111 rho21 0.9071*** rho31 0.8598*** rho32 0.9549*** log-likelihood -295.74255 number of obs 260 wald chi2(33) 96.39 prob > chi2 0.0000 likelihood ratio test of rho21 = rho31 = rho32 = 0: chi2(3) = 272.196 prob > chi2 = 0.0000 the marginal success probability for each equation 0.5455 0.5626 0.5371 joint probability(success): 0.4477 coef. is coeficient; se is standard error; non significant ns when p-value > 0.1, ***, ** and * means significant at the 1%, 5% and 10% probability levels, respectively. also in table 8, the results showed the probability that farmers use the adaptation strategies – adjustment of the seasonal calendar, application of more fertilizers and pesticides, change of variety are 55%, 56%, and 54%, respectively. the joint probability of using all adaptation strategies is 45%, while not applying all adaptation strategies is 35%. 5. conclusions and recommendations the purpose of this study was to determine how farmers view the effects of climate change. the findings indicate that farmers' perceptions of the extent and trend of temperature change are congruent with weather data. additionally, farmers have varying strategies for adapting to climate change. however, the survey found that farmers employing adaption methods remains low. farmers' adaptation is constrained by a lack of complete and reliable meteorological data, the difficulty of forecasting extreme weather occurrences, which has resulted in farmers' refusal to use adaptation measures, and the extra cost of utilising adaptation methods. this study has several policy implications. first, the district government should expand its layers of awareness about climate change. similarly, another viable programme is to develop agricultural production practices and 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(1967). statistics, an introductory analysis (2nd ed.). new york:: harper and row. https://doi.org/10.3390/cli2040223 https://doi.org/10.1016/j.sftr.2020.100015 https://doi.org/10.1007/s41685-020-00181-5 https://doi.org/10.1126/science.1239402 agbioforum, 24(1): 134-143. ©2022 agbioforum the role of entrepreneurship and green innovation intention on sustainable development: moderating impact of inclusive leadership wilson cruz mamani universidad peruana unión juliaca. email: wilson.cruz@upeu.edu.pe germain marcos lagos manrique universidad nacional federico villarreal email: glagos@unfv.edu.pe soraya del pilar carranco madrid universidad central del ecuador email: spilarcm@hotmail.com edward espinoza herrera universidad nacional federico villarreal email: eespinozah@unfv.edu.pe david barrial acosta universidad nacional micaela bastidas de apurímac email: dbarrial@unamba.edu.pe rolando remy rivas-diaz universidad nacional de san agustín email: rrivas@unsa.edu.pe josé luis arias-gonzáles university of british columbia email: joseariasgon6@gmail.com yuselino maquera maquera universidad nacional del altiplano puno email: ymmaquera@unap.edu.pe francisco samael saravia ramos universidad nacional de san agustín email: fscsaravia@gmail.com today, sustainable development (sd) is a worldwide requirement due to the numerous environmental challenges that require the attention of academics. consequently, the current study explores the effect of entrepreneurial and green innovation aims on sd in peru. in addition, the study examines the moderating effect of inclusive leadership on entrepreneurship, green innovation intention, and sustainable development in peru. the study utilized primary data collection instruments such as questionnaires to collect information from the selected respondents. the paper also used smart-pls to examine the data's dependability and the correlation between factors. in peru, entrepreneurship and green innovation intentions were found to have a good relationship with sustainable development. in addition, the data demonstrated that inclusive leadership moderates the relationship between entrepreneurship, green innovation intention, and sd in peru. the essay supports policymaking authorities in formulating sd-related policies by refocusing entrepreneurs' attention on green innovation. key words: entrepreneurship, green innovation intention, sustainable development, inclusive leadership. 1. introduction sustainable development is essential for a nation's existence and advancement in the global market. it is the achievement of human development goals alongside preserving nature's production and maintaining the quality of the ecosystem upon which the economy and society depend. its result must be a society and economy in which living and nonliving natural resources are exploited to meet current human needs without compromising the stability and integrity of nature. therefore, according to silvestre and ţîrcă (2019), sustainable development (sd) can be understood as the development that satisfies present requirements without endangering the demands of future generations. sustainability goals, such as those presented by the un assembly for sd, address various global challenges, such as environmental degradation, climate change, poverty, inequality, peace, and justice (dantas et al., 2021). the present sd concept is derived from the 1987 brundtland report. it also affects twentieth-century ideas regarding environmental concerns, sustainable forest management, etc. due to the evolution of sd objectives, the focus switched to the economic development, social progress, and environmental protection of future generations (kaul et al., 2022). environment, economy, and society are the three pillars of sd, as outlined in the un 2030 sustainability agenda. therefore, sd's success is influenced by several economic elements, such as entrepreneurialism and green innovation, which can contribute to environmental protection, economic growth, and social prosperity (sharpley, 2020). entrepreneurship entails the establishment of a new business, the management of its operations, and the assumption of the majority of the associated risks and benefits. as entrepreneurs are viewed as responsible for most threats and those who benefit most from any gains, they attempt to minimize risks and increase profitability. to improve the total business performance, including environmental, social, and financial performance, which determine sustainable development (sd), they maintain innovation, produce and execute new ideas, increase the mailto:wilson.cruz@upeu.edu.pe mailto:glagos@unfv.edu.pe mailto:spilarcm@hotmail.com mailto:eespinozah@unfv.edu.pe mailto:dbarrial@unamba.edu.pe mailto:rrivas@unsa.edu.pe mailto:joseariasgon6@gmail.com mailto:ymmaquera@unap.edu.pe mailto:fscsaravia@gmail.com agbioforum, 24(1), 2022 | 135 mamani, manrique, madrid, herrera, acosta, diaz, gonzáles, maquera and ramos. — the role of entrepreneurship and green innovation intention on sustainable development quality of goods and services, and work on business procedures (fatimah et al., 2020). environmental sustainability is one of the pillars of sustainability that support others, such as social well-being and economic growth. green innovation intention refers to an organization's aim or objective to bring innovation to all business processes, the innovation that eliminates the negative environmental repercussions of business. it is possible to accomplish sustainable corporate development with good ecological performance (leal filho et al., 2020). 1.1 sustainable development in peru the 2030 agenda and the sdgs have been integrated into the overall government policy of the peruvian government. in the 2019 sd statistics, peru ranks 51 out of 161 countries, demonstrating a mediocre performance. if peru's sd is compared to the global average, the country receives a score of 6.1% and is still on track to achieve development. it has been claimed that the government is making significant strides in achieving the sdgs (alvarezrisco et al., 2021). virtually no government-driven businesses have participated in the 2030 agenda. as an initial step towards greater openness and transparency from businesses, essential sustainable practices are being implemented, such as the superintendencia de mercado de valores' demand that all companies trading on the peruvian stock exchange submit sustainability reports. according to (salmoral et al., 2020), among the most prioritized goals are sdg 4 'quality education' with 64% progress, sdg 8 'good jobs and economic growth with 60% progress, sdg 17 'partnerships for the goals' with 52% progress, and sdg 5 'gender equality' with 50% progress. following these were sdgs such as zero hunger, good health, and innovation. 1.2 problem statement and study objectives peru's economy is emerging rapidly. environmental pollution is caused by economic activities such as fuel consumption, electricity production, transportation, chemical manufacture and use, construction, mining, and manufacturing. moreover, the majority of firms prioritize profits over social responsibility. it is a warning sign for the county's sd (gustafsson & scurrah, 2019). there is a need to eliminate this risk, and the current study is a step in that direction. this study aims to explore the effects of entrepreneurial and green innovation intentions on sustainable development. it also investigates the moderating impact of inclusive leadership on entrepreneurship, green innovation intention, and sustainable development. 2. research contribution the significance of this work to literature is significant. first, in prior research, entrepreneurship and green innovation intention impacts sd have been investigated. still, the simultaneous analysis of entrepreneurship and green innovation intention effects on sd has received little attention. this study contributes to the existing body of knowledge by examining the influence of entrepreneurship and green innovation ambition on sd achievement. second, previous research has examined the relationship between inclusive leadership and sustainable development without addressing inclusive leadership as a moderator between entrepreneurship, green innovation intention, and sustainable development. this study attempts to use inclusive leadership as a moderator between entrepreneurship, the intention to engage in green innovation, and sd (talha et al., 2022). thirdly, the rate of sd advancement in peru is slow. very little research in peru has addressed this subject. in peru, the role of inclusive leadership, entrepreneurship, and green innovation intention in sd has been evaluated for the first time. 2.1 study structure after explaining the subject of the study, the second section examines the relationship between entrepreneurship, green innovation intention, inclusive leadership, and sustainable development (sd). the third section consists of a description of the methods used to collect data on variables and an analysis of their relationship. after finding the study results, these are compared with the previous studies. the ramifications, findings, and limitations of the study are then presented. 3. literature review sd is the state of a nation in which living and nonliving resources are utilized to meet current demands. the three pillars of sd are environmental sustainability, social welfare, and economic development. these three pillars are interdependent and can act as one another's drivers. entrepreneurship results in the administration of an organization to enhance and sustain its performance, which adds to sd. green innovation fosters eco-friendly methods, and environmental sustainability contributes to sd (duff & downs, 2019). this study explores the role of entrepreneurship and green innovation intention, with inclusive leadership as a mediator, in achieving sustainable development (sd). the study examines the importance of entrepreneurship, green innovation intention, and inclusive leadership in attaining sustainable development and occupies a prominent place in previous research. the next section analyzes the hypothesis on the relationship between entrepreneurship, green innovation intention, inclusive leadership, and achieving sd based on previous research findings (arce et al., 2021). 3.1 entrepreneurship and sustainable development johnson and schaltegger (2020) study the importance of entrepreneurship in achieving sustainable development. a systematic review method was utilized to develop the relationship between the relevant variables, and a multilevel causal mechanism framework was developed. the study hypothesizes that the firm's internal operations, such as inventory management, production, labor productivity, and the quality of technology resources, influence the firm's contribution to economic growth, the social welfare of stakeholders, and environmental quality. a good entrepreneur controls the firm such that all agbioforum, 24(1), 2022 | 136 mamani, manrique, madrid, herrera, acosta, diaz, gonzáles, maquera and ramos. — the role of entrepreneurship and green innovation intention on sustainable development business activities are properly regulated, generate greater revenues, and have no negative effect on the environment or social welfare. thus, entrepreneurship paves the road for a nation to attain sd. vázquez maguirre et al. (2018), states that business operations are governed by entrepreneurs. if a business owner is efficient and socially responsible, they will not just seek to increase profits but also protect the interests of all stakeholders. this improves the quality of products and services, contributing to economic growth, environmental quality, and social welfare, all of which contribute to sustainable development. galindo-martín et al. (2021) investigate the effects of general and social entrepreneurship and economic and socio-cultural aspects on accomplishing sustainable development (sd). the empirical investigation utilized structural equation modeling. a research survey was done in 15 oecd countries, and information on understudy factors for 20152016 was obtained from these nations. the research suggests that general entrepreneurship conducts its activities effectively to earn earnings greater than those of company units by reaching a high market ranking. it adds to sd's economic objectives (al dallal & pitts, 2021). in the case of social entrepreneurship, when the major objective of organizational endeavors is to increase social welfare, environmental and socially sustainable development goals, which also function as economic goals, are attained. given the above explanation, we may state the following: h1: entrepreneurship has a positive influence on sd achievement. 3.2 green innovation intention and sustainable development zhang and zhu (2019) discussed the role of green innovation intent, stakeholder pressure, and organizational learning in sd. we collected empirical data regarding green innovation, stakeholder pressures, and organizational learning in sd based on a sample of 259 chinese manufacturing enterprises. the survey reveals that businesses with a green innovation strategy utilize green technologies for business processes such as lighting or heating the organization's facility, manufacturing products and services, and transportation. this eliminates environmental degradation and makes sd possible for the economy. according to abbas and sağsan (2019), green innovation activities such as using green raw materials, green technologies, green production, and green marketing are implemented in organizations whose management has a green innovation goal. the implementation of these ecofriendly strategies improves the environmental performance of the companies. environmental protection ensures the availability of natural resources and quality human resources for the economy, thereby contributing to the nation's sustainable development. asadi et al. (2020) explore the relationship between green innovation intention and sustainable performance. collect data was used to inspect 184 malaysian hotels and gather information regarding their green innovation intentions and sustainable performance. pls was utilized for the study of the variables and their relationships. according to the survey, green innovation techniques such as energyefficient appliances, chemical-free food preparation, clean serving equipment, and adequate waste disposal are implemented in hotels where management has a green orientation. this enhances the quality of hotel products and services and, consequently, people's health, which is essential to achieving sd. based on the literature mentioned above, it is possible to establish the following hypothesis: h2: green innovation intention has a positive influence on sd achievement. 3.3 inclusive leadership role between entrepreneurship and sustainable development galindo-martín et al. (2021), explores inclusive leadership, entrepreneurship, and sd. during covid-19 predominance, data on inclusive leadership, entrepreneurship, and sd were collected from oecd countries. partial least square modeling was utilized for the empirical investigation of components nexus. the study hypothesizes that, under inclusive leadership, the leaders, on the one hand, encourage the entrepreneurs to care for the employees' needs and, on the other hand, convey the organizations' concern for the employees. therefore, it enables entrepreneurs to be socially responsible and compels employees to work efficiently on socially responsible projects, propelling the nation towards sd. sun et al. (2020) study the relationship between inclusive leadership, entrepreneurship, and sustainable development. information on inclusive leadership, entrepreneurship, and sd was obtained using a panel dataset of 35 sub-saharan african nations, including middle-income and low-income. the connection between components was analyzed using the pmg estimator with the ardl model. according to the study, inclusive leadership increases the efficacy of entrepreneurship and accelerates the country's progress toward sustainable development. thus, inclusive leadership enhances entrepreneurship's contribution to sd. this study by iqbal and ahmad illustrates that entrepreneurship aims to improve corporate performance. when a team leader employs inclusive leadership, subordinates are committed to the organization and driven to carry out their responsibilities effectively. consequently, entrepreneurial aims can be attained. moreover, via inclusive leadership, the organization supports and improves the performance of its employees, which contributes to sd. therefore, including leadership strengthens the relationship between entrepreneurship and sd. based on the studies discussed, it can be stated: h3: inclusive leadership is a significant moderator between entrepreneurship and sd achievement agbioforum, 24(1), 2022 | 137 mamani, manrique, madrid, herrera, acosta, diaz, gonzáles, maquera and ramos. — the role of entrepreneurship and green innovation intention on sustainable development 3.4 inclusive leadership role between green innovation intention and sustainable development shahzad et al. (2022) investigate the impact of inclusive leadership, green innovation intent, and green technology on sd acceleration. a survey of 516 pakistani manufacturing companies gathered information about green innovation technology and sd. the artificial neural network (ann) method and structural equation modeling (sem) was utilized. the report asserts that companies with a policy of adopting inclusive leadership, incorporating green innovation into business operations, and focusing on the green improvement of the technology required to perform a business function are the most environmentally conscious. the resultant environmental performance facilitates sustainable economic development. consequently, inclusive leadership establishes a connection between green innovation intent and sd. zhou et al. (2020) investigate the effects of green innovation on sd objectives. the adoption of inclusive leadership generates an environment of cooperation and support. in this situation, the aim of the green invention can be realized, and the enhanced environmental sustainability adds to sd. as a result, the connection between green innovation and sd becomes stronger. melander and pazirandeh (2019) examine the effects of green innovation intention assimilation on sd. the green innovation intention and sd analysis are based on 11 case studies with 30 top management interviews conducted at high-tech enterprises. the study hypothesizes that company management that focuses on adopting green innovation in many business domains accomplishes marketing potential and safeguards social welfare, natural resources, and the living environment. this contributes to the sd of the country. to explain why: h4: inclusive leadership is a significant moderator between green innovation intention and sd achievement. research methods this study examines the effects of entrepreneurship and green innovation intention on sd and the moderating impact of inclusive leadership on the relationship between entrepreneurship, green innovation intention, and sd in peru. the study utilized primary data collection instruments such as questionnaires to collect information from the selected respondents. the survey respondents are students enrolled in entrepreneurial and environmental studies at government universities. the students were randomly selected, and the questionnaires were distributed via personal visits. 536 questionnaires were sent out. however, only 290 legitimate responses were obtained, representing a response rate of around 54.10 percent. in addition, the smart-pls was used to examine the data's reliability and the correlation between factors. an appropriate data analysis instrument yields the best results when evaluating primary data. in addition, it handles tiny and large data sets adequately. in addition, the study includes two independent variables: entrepreneurialism and intention to pursue green innovation. in addition, the study uses inclusive leadership as a moderating variable and sd as a predicting predictor. entrepreneurship (enp) has twelve items adopted from staniewski and awruk (2019), and green innovation intention (gii) has eight items extracted from singh et al. (2020). inclusive leadership has ten items extracted from qi et al. (2019), and social desirability has eight items adopted from gericke et al. (2019). figure 1 presents these variables within the theoretical framework. figure 1: theoretical model 4. research findings the correlation between the constructs was examined in this study, and the results revealed that the alpha values are greater than 0.70, the average variance extracted (ave) values are greater than 0.50, the composite reliability (cr) values are greater than 0.70, and the factor loading values are greater than 0.50. these values suggested a strong relationship between elements. table 1 contains these values. additionally, the correlation between the variables has been examined. fornell larcker and cross-loadings revealed that the values indicating the association between variables are greater than those revealing the association between variables and other constructs. these results showed a weak relationship between factors. these values are presented in tables 2 and 3. entrepreneurship green innovation intention inclusive leadership sustainable development agbioforum, 24(1), 2022 | 138 mamani, manrique, madrid, herrera, acosta, diaz, gonzáles, maquera and ramos. — the role of entrepreneurship and green innovation intention on sustainable development table 1: convergent validity constructs items loadings alpha cr ave entrepreneurship enp1 0.850 0.950 0.957 0.668 enp11 0.845 enp12 0.804 enp2 0.822 enp3 0.827 enp4 0.828 enp5 0.841 enp6 0.802 enp7 0.830 enp8 0.785 enp9 0.749 green innovation intention gii1 0.920 0.978 0.981 0.865 gii2 0.931 gii3 0.930 gii4 0.940 gii5 0.926 gii6 0.926 gii7 0.943 gii8 0.925 inclusive leadership il1 0.831 0.935 0.946 0.663 il10 0.578 il2 0.858 il3 0.849 il4 0.812 il5 0.865 il6 0.862 il8 0.855 il9 0.777 sustainable development sd1 0.760 0.915 0.931 0.630 sd2 0.837 sd3 0.655 sd4 0.808 sd5 0.814 sd6 0.812 sd7 0.829 sd8 0.821 table 2: fornell larker enp gii il sd enp 0.817 gii 0.488 0.930 il 0.452 0.428 0.814 sd 0.500 0.442 0.424 0.794 the connection between factors was also examined using the heterotrait monotrait (htmt) ratio. the results revealed that the values were less than 0.85 and that the correlation between variables was weak. table 4 contains these values. entrepreneurship and green innovation intentions have a favorable relationship with sustainable development in peru, confirming hypotheses h1 and h2. the data also demonstrated that inclusive leadership moderates the relationship between entrepreneurship, green innovation intention, and sustainable development in peru and supports hypotheses h3 and h4. these associations are shown in table 5. 5. discussion according to the study's findings, entrepreneurship positively affects sd achievement. these findings are consistent with prior research on al-qudah et al. (2022) . this study demonstrates that entrepreneurs are responsible for the firm's survival, liable for losses, and entitled to greater earnings. the business owners manage the business procedures. if they identify a weak point in the organization's operations that threatens to disrupt business operations, or if business performance declines, they attempt to implement adjustments. the country's capability to attain sd is enhanced by value-creating and environmentally-friendly developments in business. these findings are also consistent with lotfi et al. (2018) examination of the effect of entrepreneurship on sd attainment. according to the study, effective entrepreneurs monitor not only the fluctuation of current profits but also the constancy of corporate performance. therefore, they attempt to implement environmentally friendly and socially desirable methods contributing to the country's sd. the study's findings indicate that green innovation intentions positively affect sd performance. these results are consistent with awan et al. (2019). this study demonstrates that when business owners and administrators are committed to green innovation, they are willing to invest in environmentally friendly activities. therefore, environmental conservation ensures the availability of natural resources and effective human resources for economic and social growth. this contributes to the nation's sd. these findings are also consistent with lisi et al. (2020) findings, which shed light on the impact of green innovation intention on sd achievement. incorporating green innovation intention sustains economic activity and the attainment of financial goals without harming the environment when resources are created, and live organisms thrive. this ensures the sustainable development of a nation. agbioforum, 24(1), 2022 | 139 mamani, manrique, madrid, herrera, acosta, diaz, gonzáles, maquera and ramos. — the role of entrepreneurship and green innovation intention on sustainable development table 3: cross-loadings enp gii il sd enp1 0.850 0.405 0.375 0.464 enp11 0.845 0.353 0.396 0.388 enp12 0.804 0.324 0.352 0.304 enp2 0.822 0.452 0.351 0.459 enp3 0.827 0.435 0.379 0.459 enp4 0.828 0.451 0.369 0.438 enp5 0.841 0.351 0.398 0.386 enp6 0.802 0.326 0.358 0.300 enp7 0.830 0.456 0.376 0.434 enp8 0.785 0.393 0.358 0.382 enp9 0.749 0.385 0.351 0.399 gii1 0.453 0.920 0.402 0.389 gii2 0.458 0.931 0.428 0.394 gii3 0.463 0.930 0.396 0.395 gii4 0.454 0.940 0.413 0.420 gii5 0.447 0.926 0.371 0.437 gii6 0.459 0.926 0.394 0.394 gii7 0.457 0.943 0.416 0.416 gii8 0.445 0.925 0.370 0.435 il1 0.333 0.350 0.831 0.342 il10 0.261 0.184 0.578 0.261 il2 0.390 0.354 0.858 0.349 il3 0.361 0.345 0.849 0.333 il4 0.393 0.379 0.812 0.304 il5 0.389 0.368 0.865 0.320 il6 0.411 0.376 0.862 0.381 il8 0.408 0.392 0.855 0.423 il9 0.343 0.351 0.777 0.354 sd1 0.460 0.430 0.368 0.760 sd2 0.429 0.345 0.364 0.837 sd3 0.253 0.338 0.237 0.655 sd4 0.430 0.404 0.342 0.808 sd5 0.382 0.306 0.316 0.814 sd6 0.384 0.322 0.355 0.812 sd7 0.413 0.332 0.358 0.829 sd8 0.375 0.307 0.324 0.821 table 4: heterotrait monotrait ratio enp gii il sd enp gii 0.500 il 0.478 0.445 sd 0.519 0.463 0.451 table 2: measurement model assessment agbioforum, 24(1), 2022 | 140 mamani, manrique, madrid, herrera, acosta, diaz, gonzáles, maquera and ramos. — the role of entrepreneurship and green innovation intention on sustainable development table 5: path analysis relationships beta s.d. t statistics p values enp -> sd 0.346 0.067 5.165 0.000 enp*il -> sd 0.109 0.058 1.867 0.032 gii -> sd 0.207 0.071 2.905 0.002 gii*il -> sd 0.100 0.058 1.717 0.045 il -> sd 0.236 0.065 3.654 0.000 figure 3: structural model assessment figure 4: moderation analysis according to the study's findings, inclusive leadership is an important moderator between entrepreneurship and sd accomplishment. these findings are consistent with the prior research of bhutto et al. (2021). this study demonstrates that the objective of entrepreneurship is to enhance the performance of organizations. when a team leader in a business adopts inclusive leadership, subordinate employees are intrinsically committed to the organization and motivated to provide greater service. thus, the objectives of entrepreneurship are realizable. as a result of inclusive leadership, the organization supports and improves the work of its people, thereby contributing to sd. including leadership increases the connection between entrepreneurship and sd achievement in this manner. óskarsdóttir et al. (2020), who address the impact of entrepreneurship on sd performance, concur with these findings. inclusive leadership enhances entrepreneurship by facilitating the accomplishment of its objectives and facilitating the implementation of sd practices. it agbioforum, 24(1), 2022 | 141 mamani, manrique, madrid, herrera, acosta, diaz, gonzáles, maquera and ramos. — the role of entrepreneurship and green innovation intention on sustainable development increases the contribution of effective entrepreneurship to sd attainment. according to the study, inclusive leadership is an important modulator between green innovation intention and sd achievement. these results are consistent with the past research of hope sr (2020). this study demonstrates that the adoption of inclusive leadership produces a supportive and cooperative atmosphere in which the green innovation intention can be carried out, and the improved environmental performance of the enterprises contributes to the country's sustainable development. thus, the association between green innovation intent and sd strengthens. these findings are also consistent with zhao et al. (2020)’s examination of the relationship between green innovation intention and sd achievement. the study demonstrates that when an organization's management has a strong commitment to green innovation, it integrates environmentally friendly methods into its daily business operations to reduce its environmental impact. if inclusive leadership is implemented, the aim for green innovation may be developed, and sd objectives can be attained. 6. theoretical implications scholars and researchers can learn more and better about their literary works due to the current investigation. this study investigates the effects of entrepreneurial intent and green innovation on sd achievement. the combined investigation of the function of entrepreneurship and green innovation intention in sd achievement occupies a unique place in the literature. in addition, the study contributes to the existing literature by evaluating inclusive leadership as the moderator between entrepreneurship, green innovation intention, and sustainable development. in addition, this paper investigates the importance of inclusive leadership, entrepreneurship, and the goal of green innovation in sd accomplishment in peru. 7. empirical implications the present study is of great importance to all nations because it focuses primarily on sustainable development, a global topic. the study instructs state and organizational policymakers on how to attain sustainable development. the analysis assists them in formulating legislation and implementing strategies that promote socially responsible, innovation-focused, and economically effective entrepreneurship so that sd can be realized more rapidly. the research also instructs the government and environmental regulators to devise fiscal policies, sanctions, subsidies, and developmental programs to support green innovation to protect the environment so that the country's sustainable development goals may be met. the essay helps policy-making authorities formulate sdrelated policies by refocusing entrepreneurs' attention on green innovation. similarly, this piece of writing encourages company management to encourage leaders to adopt inclusive leadership to enhance the effectiveness of entrepreneurship and so hasten sd's success. the study reveals that inclusive leadership must be established to promote green innovation intent, and sd may be realized. 8. conclusion the study aimed to assess the impact of entrepreneurship and green innovation on sd attainment. in addition, the purpose was to examine the function of inclusive leadership in entrepreneurialism, green innovation goal, and sd success. through the distribution of questionnaires to students in peru, actual data on inclusive leadership, entrepreneurship, green innovation intent, and sd achievement were gathered. the results reveal a correlation between entrepreneurship, the ambition to engage in green innovation, and sd achievement. the authors discovered that social and environmentally responsible practices are implemented when the objective of entrepreneurship is not just to increase profits but also to consider the interests of stakeholders (locals, employees, consumers, etc.). the social and environmental performance of the organization contributes to the country's attainment of sd. incorporating the concept of green innovation preserves economic processes without negatively impacting the environment. this is useful for attaining sd. the study demonstrates that inclusive leadership boosts entrepreneurship and accelerates the realization of sustainable development. additionally, the study suggests that inclusive leadership promotes the propensity to pursue green innovation, hence increasing sd. 9. limitations there are several limitations involved with this study. while producing comparable studies, scholars must evaluate and eliminate these constraints in the future. the influence of only two elements in sd performance is examined in this study: entrepreneurialism and green innovation intention. sd is a wide economic notion that is influenced by a variety of other variables. future authors must include additional variables in their research on the impact of entrepreneurship and green innovation intention on sustainable development (sd) achievement. this study examined inclusive leadership as a moderator between entrepreneurship, green innovation intention, and sd. future researchers must expand the breadth of the literature by incorporating at least one mediator between entrepreneurship, green innovation intention, and sd achievement. references abbas, j., & sağsan, m. 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https://doi.org/https:/doi.org/10.1016/j.jclepro.2020.120950 https://doi.org/https:/doi.org/10.1016/j.jclepro.2020.120950 1. introduction 1.1 sustainable development in peru 1.2 problem statement and study objectives 2. research contribution 2.1 study structure 3. literature review 3.1 entrepreneurship and sustainable development 3.2 green innovation intention and sustainable development 3.3 inclusive leadership role between entrepreneurship and sustainable development 3.4 inclusive leadership role between green innovation intention and sustainable development 4. research findings 5. discussion 6. theoretical implications 7. empirical implications 8. conclusion 9. limitations agbioforum, 24(1): 178-192. ©2022 agbioforum halal food and beverage trade: do restriction on religion, halal certification, and oic membership have any impact? baharom abdul hamid centre of excellence in islamic social finance inceif university kuala lumpur, malaysia email: baharom@inceif.org chariyawat charoenchang the state enterprise policy office, ministry of finance, 10400 bangkok, thailand email: chariyawat_c@sepo.go.th ginanjar dewandaru indonesia national committee of islamic finance (knks) kota jakarta selatan, daerah khusus ibukota jakarta, 12980, indonesia email: ginanjar.d@knks.go.id this study determined the worth of the halal food and beverage trade. we imposed the poisson pseudo-maximum likelihood after applying the gravity model (ppml). the economic size of trading partners, regional trade agreements, a shared border, and a shared language are determinants with a strong beneficial effect on commerce. on the other hand, the negative trade factors are the distance between trading parties, the exporting country's income, the exchange rate comparison, and landlocked trade. in the meantime, the income level of the importing nation and the colonial relationship appeared to have little impact on trade, as does oic trade cooperation. halal certification has a considerable beneficial influence. however, limitations on religious considerations (grr and shr) have a significant negative impact on trade. key words: religious restriction, halal trade, gravity model, organization of islamic countries (oic). 1. introduction despite the fast growth of the halal sector over the past few decades, few empirical studies have been conducted on the factors that influence international halal trade. this study is a preliminary investigation into the elements that affect the value of halal commerce flow. it focuses on the halal food & beverage industry, the largest section of the halal economy. to overcome the limitations of the halal trade database, the study utilized the wto assumption when assigning hs codes to the specific trade concerns database (in the case of halal food and beverage) and the shariah principle of "presumption of permissibility" to estimate the value of halal f&b trade between nations. the examined samples include bilateral trade data from 59 countries (20 oic members) chosen based on their economic size and the value of their f&b exports. the estimation period spans the years 2007 through 2016. the examination period is constrained due to the availability of restricted religious data, one of the variables of interest. in addition, the period of the global financial crisis (20072008) was not excluded from the analysis due to the necessity of f&b products, which are less elastic to the effects of the financial crisis. in terms of methodology, we used the gravity model, which is the dominant empirically tested model of international trade, as the base model of the analysis and the poisson pseudo-maximum likelihood (ppml), which is highly recommended and widely accepted as a workhorse estimator for the gravity model, as the primary method of the regression test. the method is advantageous for dealing with heteroscedasticity, heterogeneity, autocorrelation, and zero-valued trade observation in bilateral commerce. because the oic contains more than 80 percent of the world's muslim population, which is the primary consumer of halal products, the focus of the study was on the halal food and beverage trade to the oic market. it did not investigate the trade flow from oic to non-oic markets since the oic has such a large deficit in f&b commerce that it must import food from non-oic nations. rather of focusing on exports, the organization should prioritize increasing domestic food production to reduce the imbalance. in addition, the study did not examine the trade flow between non-oic nations to determine the accuracy of the halal f&b assumption. 1.1 stylized facts on halal trade (food and beverage) according to the gathered halal trade data, we discovered several intriguing facts, which will be detailed below. first, the trade data confirms the rise in halal f&b trade value (figure 1). the value of commerce between the sample nations was less than $600 billion in 2007 and rose steadily to around $900 billion in 2016. f&b companies and policymakers must focus on this market sector because of the increasing demand for halal food and beverages, which demonstrates the market's potential. however, when we examine the expansion of trade in greater detail, we find that non-oic nations mostly drive it. in contrast, the export value of oic nations is significantly smaller than that of non-oic countries and has remained nearly constant over the years. this suggests that one of the major concerns for the oic is the group's inability to grow food production or add value to its food and beverage goods. the top five countries exporting the most halal food and beverages are the united states, netherlands, germany, brazil, and china, as determined by a detailed examination of the top exporters. none of the top ten exporting nations are members of the organization of islamic cooperation, while indonesia, the leader among oic members, ranked just eleventh throughout the observation period. figure 2 depicts the top halal food and beverage exports over the analyzed period. this also suggests a problem with the oic's food efficiency and value-added output. mailto:baharom@inceif.org mailto:chariyawat_c@sepo.go.th mailto:ginanjar.d@knks.go.id agbioforum, 24(1), 2022 | 179 hamid, charoenchang and dewandaru. — halal food and beverage trade: do restriction on religion, halal certification, and oic… figure 1: the value of halal food trade between sample countries figure 2: top world halal f&b export countries in addition, we observe rising export and import trends when explicitly focusing on the oic trade. however, the distance between the two is widening (as shown in figure 3). this widening disparity indicates an expanding food trade imbalance among oic members, which signifies that during the past decade, oic countries have been unable to produce enough food and beverages to meet the needs of their populations and have relied heavily on food imports. the expanding deficit gap resolves the group's food security concern. in the event of global food scarcity or a sudden increase in the price of oil and petroleum, the group's primary source of money, the oic countries are likely to face significant difficulties if they do not enhance their food production. figure 3: the total halal food exports and imports of the observed oic countries indonesia, malaysia, turkey, morocco, and egypt are the top five exporters of halal food to the rest of the world in terms of oic f&b exports (figure 4). according to the report, only indonesia and turkey have high export growth patterns. from 2007 to 2011, malaysia performed well, but its exports have declined since 2011. this necessitates more inquiry by the nation into the source of the fall in export value. moreover, the data indicate that morocco and egypt have maintained an almost consistent export value. this indicates either an inability to boost output, an absence in establishing new markets or an inability to add additional value to their food and beverage items. nonetheless, it acknowledges the countries need to address the competitive challenge in f&b commerce. figure 4: top oic halal f&b exporting countries . 20. 40. 60. 80. 100. 120. u s d b il li o n united states netherlands germany brazil china france canada spain belgium italy indonesia . 20. 40. 60. 80. 100. 120. 140. u s d b il li o n oic exports oic imports . 5. 10. 15. 20. 25. 30. u s d b il li o n indonesia malaysia turkey morocco egypt, arab rep. . 100. 200. 300. 400. 500. 600. 700. 800. 900. 1000. u s d b il li o n halal food trade oic exports non-oic exports agbioforum, 24(1), 2022 | 180 hamid, charoenchang and dewandaru. — halal food and beverage trade: do restriction on religion, halal certification, and oic… furthermore, a detailed examination of oic imports revealed that most food imports come from non-oic nations (as shown in figure 5). this also indicates that most halal food and beverage supplies to oic nations come from non-oic countries. this level is also rising, although the value of imports from intra-oic has remained nearly steady throughout the observation. figure 5: sources of halal food imported to the oic countries according to halal trade data, the value of international halal food and beverage commerce is increasing. even though the sector is tied to islamic principles, non-oic exports dominate the market. the value of oic countries' food and beverage exports lags significantly behind, and the members must rely heavily on food imports from outside the organization. the group should prioritize increasing the efficiency of food and beverage production, and food security is a concern for policymakers. 1.2 stylized facts on restrictions on religion although journalists and human rights organizations have reported for many years on the persecution of minority faiths, outbreaks of sectarian violence and other pressures on religious groups in many countries, no quantitative study that could provide measurements or indicators of the level of restrictions on religion had been conducted until the work of the pew research center's forum on religion and public life. the survey, undertaken for the first time in 2007, examined various sources to determine how governments and private entities violate religious beliefs and practices worldwide. as a result of the study, a list of two indicators, namely the government restrictions index (gri) and the social hostilities index (shi) for 198 countries and self-governing territories, is provided (grim, 2012). following is a description of the indexes: "the government restrictions index measures government laws, policies, and actions that restrict religious beliefs and practices. it comprises 20 measures of restrictions, including efforts by the government to ban 1 the percentage from 198 countries. data from pew research center (2017) particular faiths, prohibit the conversion, limit preaching or give preferential treatment to one or more religious groups. the social hostilities index measures acts of religious hostility by private individuals, organizations, or groups in society. this includes religion-related armed conflict or terrorism, mob or sectarian violence, harassment over attire for religious reasons, or other religion-related intimidation or abuse." (center, 2017) the gri and shi have limitations. grim (2012) has explained that "the indexes are designed to measure obstacles to religious expression and practice. it does not look at the amount of religious diversity nor determine whether the restrictions are justified or unjustified. it also does not analyze historical, demographic, cultural, religious, economic, and political factors that might explain why restrictions have arisen". however, they do have benefits in providing a quantitative measurement of the issue. the indexes have been recognized and used for several empirical types of research related to religious freedom (peace, 2014). the gri and shi statistics indicated that religious limitation is one of the most difficult problems in the world today. according to the data, government restrictions on religion (grr) and social hostility towards religion (shr) are on the rise. 53% of the 198 nations surveyed in 2015 reported evidence of official harassment against religious groups, and 40% of those countries had high or very high levels of restrictions. figures 6 and 7 illustrate the proportion of the 198 countries observed with high grr and shr, respectively. figure 6: percentage of countries with high level of grr (198 observation countries)1 figure 7: percentage of countries with high level of shr from 198 observation countries2 2 the percentage from 198 countries. data from pew research center (2017) . 50. 100. 150. u s d b il li o n oic halal food import from intra-oic and non-oic intra-oic imports import from non-oic agbioforum, 24(1), 2022 | 181 hamid, charoenchang and dewandaru. — halal food and beverage trade: do restriction on religion, halal certification, and oic… according to the survey, muslim-majority nations such as pakistan, indonesia, egypt, iraq, and saudi arabia are among the highest in terms of limitations. however, the greatest increase occurred in non-muslim majority countries, particularly in europe, and muslims appear to be the most targeted group by both grr and shr. islamophobia is a term coined by academics to describe the global wave of fear, bigotry, and prejudice towards islam and muslims, which is growing rapidly. there is a possibility that the extent of religious restrictions can have a major effect on trade performance, particularly for halal products. the supporting intuition for the hypothesis is that religious limitations have been empirically investigated and found to have a strong negative association with institutional quality (grim et al., 2014), which substantially impacts commerce (karam et al., 2019). in addition, consumers who share the same religious beliefs as the persecuted minority may form a bad opinion of a country's goods if a high level of religious restrictions exists. in addition, halal is a religious value for which the consumer's confidence in the halal certification is crucial. to produce a legitimate halal certification, the country needs islamic organizations with sufficient strength to support its procedure. this appears to be challenging for countries with strong limitations. nonetheless, no study has confirmed the connection between islamophobia or the amount of religious restrictions and the halal trade. grim et al. (2014) explained that religious freedom is significantly associated with a more robust institutional framework. previous research has also established a correlation between institutional environment and trade performance for certain product categories (bournakis et al., 2016; krammer et al., 2018; mehrara et al., 2017). but halal and other religious products have never been evaluated. anderson et al. (2003) was one of the few academics to examine the correlation between religion and commercial flow. between 1996 and 1999, he utilized the gravity model to investigate the effect of religion on the bilateral trade flows of 33 selected nations. after controlling for other variables, such as oil-exporting countries and regional trade agreements, his empirical research revealed that, on average, muslim-majority countries trade less than countries with a majority of christians, buddhists, or other religions. guo (2004) examined the impact of religion and other cultural factors on u.s.-chinese trade. overall, he discovered that the impact of religious similarities on u.s.china commerce is minimal. however, there is evidence that religious differences harm the trade between the united states and china with low-income partners. helble (2007) examined the global impact of religion on the trade of 151 nations. his premise was that having the same religion as trading partners would boost mutual trust and promote commerce. however, based on the empirical findings, he could not establish that a shared faith has a major favorable effect on trade. however, he discovered that countries that host a range of religions or have a greater degree of religious tolerance perform substantially better in international trade. regarding the problem of religious restriction, empirical research on its relationship with commerce is rarely witnessed. however, some study links the restriction to the nation's economic progress. they suggested that restrictions on religious liberty are intimately linked to persecution, bloodshed, and war. it harms the general business climate, political stability, and consumer sentiment, and it restricts the chances for firms doing business in those nations (finke, 2013; grim et al., 2010). conflict heightens business perceptions of country risk and discourages foreign investment (alon et al., 2005). it also decreases nations' competitiveness and economic progress (grim et al., 2014; uddin et al., 2017). anderson et al. (2003) was one of the few academics to examine the correlation between religion and commercial flow. between 1996 and 1999, he utilized the gravity model to investigate the effect of religion on the bilateral trade flows of 33 selected nations. after controlling for other variables, such as oil-exporting countries and regional trade agreements, his empirical research revealed that, on average, muslim-majority countries trade less than countries with a majority of christians, buddhists, or other religions. guo (2004) examined the impact of religion and other cultural factors on u.s.-chinese trade. overall, he discovered that the effects of religious similarities on u.s.china commerce are minimal. however, there is evidence that religious differences harm the trade between the united states and china with low-income partners. helble (2007) examined the global impact of religion on the trade of 151 nations. his premise was that having the same religion as trading partners would boost mutual trust and promote commerce. however, based on the empirical findings, he could not establish that a shared faith has a major favorable effect on trade. however, he discovered that countries that host a range of religions or have a greater degree of religious tolerance perform substantially better in international trade. figure 8: the average level of gri and shi of the sample countries 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 avg. gri avg. shi agbioforum, 24(1), 2022 | 182 hamid, charoenchang and dewandaru. — halal food and beverage trade: do restriction on religion, halal certification, and oic… through preliminary descriptive analysis, we determined that both the government restriction index (gri) and the societal hostility index (shi) indicate an increase in the level of religious restriction (as shown in figure 8). the average level of indices was approximately 3.0 in 2007 and has continued to rise to around 4.0 in 2016. this reinforces the claim by grim et al. (2014) that the issue is one of the most pressing challenges facing the world today and that policymakers must address it. according to them, the indicators are substantially inversely related to the institutional environment and the country's stability, which are crucial for economic growth. comparing oic and non-oic countries, the restriction levels in oic countries are higher than in non-oic countries, and the rate is increasing in both groups (as in figure 9). however, we discovered that the level is increasing rapidly in non-oic countries, particularly the shi, which reflects religiously-related societal conflicts. in 2007, the difference between oic and non-oic nations in shi was approximately two points; by 2016, this disparity had shrunk to about one point (as in figure 10). this suggests that social disputes between religious groups are becoming more severe in non-oic nations compared to the previous decade. this is feasible due to the cause of muslim migration into non-muslim majority nations and the effect of media-created islamophobia (reuters, 2017). figure 9: the average level of gri and shi between oic and non-oic countries 1.3 halal certification and trade halal certification began in the 1970s and has become an influential commercial designation for muslim consumers' shopping decisions (samori et al., 2014). halal logos have a crucial part in consumer choice-making, according to several studies (abdul et al., 2009; awan et al., 2015; krishnan et al., 2017; sherwani et al., 2018). however, empirical research into its effect on the value of halal commerce flow remains limited. numerous halal certification organizations (hco) have been established to provide certification services in response to the increasing demand from halal producers. for instance, france alone has 50 hcos, whereas the united kingdom has 20 hcos that compete to issue certifications (adidaya, 2016). the most recent concern with halal certification is acknowledging halal standards among commercial partners. some nations, including malaysia and indonesia, have established the halal certification system for food and beverage imports. in their countries, only products with a list of certified halal trademarks are permitted to be imported. figure 10: the shi scores between oic and non-oic countries a well-recognized halal certification should give the country a competitive edge in halal exports. according to blind et al. (2018), the standard certificate has a substantial positive impact on commerce. the certification minimizes information asymmetries and transaction costs between commercial partners. however, little limited empirical evidence exists to support this claim. figure 11: the conceptual framework of the research because there is no international record of certified halal trade, the lack of accessible data is the greatest obstacle to halal trade determinant research. however, we believe that awareness of the halal trade characteristic is necessary for industry participants and governments that view the halal market as a possible source of revenue. therefore, it 1.00 2.00 3.00 4.00 5.00 6.00 7.00 oic gri oic shi non-oic gri non-oic shi 1.00 2.00 3.00 4.00 5.00 6.00 oic shi non-oic shi agbioforum, 24(1), 2022 | 183 hamid, charoenchang and dewandaru. — halal food and beverage trade: do restriction on religion, halal certification, and oic… is preferable to discover an acceptable measure of the halal trade dataset and then perform the study, as waiting for a complete dataset to become accessible could take considerable time. this research offers an alternate method to circumvent the lack of data for the empirical halal trade analysis. it used the wto assumption for assigning hs codes to the specific trade concerns database (in the instance of halal food) and the shariah principle of "presumption of permissibility" to estimate the estimated value of halal f&b trade between nations. doing so can pioneer the empirical work of halal trade determinant study using the standard model and approved estimation method. on the other hand, it broadens the scope of international trade literature to include the halal f&b industry, which, to our knowledge, has not been studied previously. model specification the theoretical gravity model and earlier studies on trade determinants provide a collection of variables that regularly influence the value of bilateral trade flows between trading partners. since as far as we are aware, halal food is the only sector that has not been analyzed expressly for the elements influencing its trade value. before digging into the specifics of other factors of interest, it is crucial first to examine the impact of this group of common determinants. to answer this question, the following empirical study model is proposed: 𝐻𝐹𝐸𝑖𝑗𝑡 = 𝑘 + 𝛽1𝑙𝑛 𝐺𝐷𝑃𝑖𝑡 + 𝛽2𝑙𝑛 𝐺𝐷𝑃𝑗𝑡 + 𝛽3𝑙𝑛 𝐷𝐼𝑆𝑇𝑖𝑗 + ѳ𝐶𝑜𝑛𝑡𝑟𝑜𝑙𝑖𝑗𝑡+ 𝜀𝑡 ……………………... (1) where 𝐶𝑜𝑛𝑡𝑟𝑜𝑙𝑖𝑗𝑡 = 𝜃1𝑅𝑇𝐴𝑖𝑗 + 𝜃2𝐿𝐴𝑁𝑖𝑗 + 𝜃3𝐹𝑋𝑖𝑗𝑡 + 𝜃4𝐺𝐷𝑃𝐶𝑖𝑡 + 𝜃5𝐺𝐷𝑃𝐶𝑗𝑡 + 𝜃6𝐵𝑜𝑟𝑑𝑒𝑟𝑖𝑗 + 𝜃7𝐶𝑜𝑙𝑖𝑗 + 𝜃8𝐿𝑎𝑛𝑑𝑙𝑜𝑐𝑘𝑖𝑗 …………………………………………(2) the hfeijt is the dependent variable representing the value of the halal food trade from the country i to country j at time t. the variables in eq.1 are taken from the theoretical gravity model where gdpit and gdpjt represent the size of the economy of the trade partners at the time t, and disij is the distance between the two countries. the list of control variables tested in eq.2 is collected from the common variables found in the gravity kinds of literature, which are already discussed in the previous chapter, including the relative exchange rate of trade partners (fxijt), income level of their population, which is proxied by the gdp per capita (gdpcit and gdpcjt). in addition, some dummy variables, including regional trade agreement (rtaij), common official language (lanij), common border (borderij), colonial relationship (colij), and trade involvement with the landlocked country (landlockij), are added for the examination. according to the gravity theory and the literature, the value of trade flow is positively related to the economic size of trade partners and inversely influenced by the distance between them. thus, we expect that impact of gdpit, gdpjt, and distij according to the literature explored, the trade will align with halal food. for the list of control variables in eq.8, we expect that the variables that should benefit the halal food trade are: regional trade agreement (rtaij), income level of the importer (gdpcjt), common language (lanij), common border (borderij), and colonial relationship (colij). regional trade agreement (rtaij) can benefit the trade flow since it reduces the trade barriers, such as customs and tariffs between its members (shepherd et al., 2019). the income level of the importer (gdpcjt) increases the consumption capability of people within the country and creates demand for more imported products (ramezzana, 2000). in terms of countries that share a common border (borderij), it should comparatively be more convenient for goods transportation between them, resulting in a higher value of trade (cheong et al., 2018; didier, 2018; m. u. fratianni, 2007; gani, 2017; gundogdu, 2009; hatab et al., 2010; liu et al., 2020; miran et al., 2013; rautala, 2015). lastly, the countries which have a common official language (lanij) and colonial relationship (colij) should trade more, according to the kinds of literature (cheong et al., 2018; elliott et al., 2019; m. fratianni et al., 2006; gani, 2017; hatab et al., 2010). the factors that are expected to have negative impacts on trade include the relative exchange rate of the exporter over the importer (fxijt), the income of the exporter (gdpcit), and dealing with landlocked countries (landlockij). the exchange rate (fxijt) is the portion of one unit of the exporter's currency to the importers. it determines the price of the exporter's product in the eye of the importer. thus, a higher level of this relative exchange rate means more expensiveness of the product from the importer's perspective (bhattacharyya et al., 2018; masron et al., 2014). therefore, the exchange rate variable (fxijt) is expected to impact the halal food trade's total value negatively. the higher income of exporting countries (gdpcit) can reduce the number of exports due to higher demands of local consumption (abidin et al., 2013; hatab et al., 2010; masron et al., 2014). the landlocked country (landlockij) has a natural barrier to trade due to its limitation in transportation (kharel et al., 2010). we added four additional variables to the previous model, including the oic trade dummy (oict), the recognized halal certificate organization (hco), and the level of restriction on religion in the exporting country. the limitation on religion variable is divided into the government restriction (gri) and the social restriction (shi). the following model is proposed for the empirical investigation: 𝐻𝐹𝐸𝑖𝑗𝑡 = 𝑘 + 𝛽1𝑙𝑛 𝐺𝐷𝑃𝑖𝑡 + 𝛽2𝑙𝑛 𝐺𝐷𝑃𝑗𝑡 + 𝛽3𝑙𝑛 𝐷𝐼𝑆𝑖𝑗 + 𝛽4𝑂𝐼𝐶𝑇𝑖𝑗 + 𝛽5𝐻𝐶𝑂𝑖 + 𝛽6𝐺𝑅𝐼𝑖𝑡 + 𝛽7𝑆𝐻𝐼𝑖𝑡 + ѳ𝐶𝑜𝑛𝑡𝑟𝑜𝑙𝑖𝑗𝑡 + 𝜀𝑡 …………………………………….. (3) the oictij represents the trade between oic countries. this is expected to examine the effectiveness of the oic policy in encouraging its intra-member trade in the sector agbioforum, 24(1), 2022 | 184 hamid, charoenchang and dewandaru. — halal food and beverage trade: do restriction on religion, halal certification, and oic… of halal f&b. the effectiveness of the cooperation policy should result in the same direction as the regional trade agreement factor (rta) that provides a significant positive impact on the value of trade flow (cheong et al., 2018; doan et al., 2018; m. u. fratianni, 2007; masron et al., 2014; saucier et al., 2017; urata et al., 2010). the hcoit represents the trade from the exporting country where it has a well-accepted halal certification. according to the literature, the halal certificate is one of the most important concerns for muslim consumers (shafie et al., 2006). it also plays the role of certification that helps reduce information asymmetries and transaction costs between trading partners (blind et al., 2018). the country with well-recognized halal certification should have more advantage in the halal food trade. griit and shiit represent the level of government and social restrictions on religion, respectively. the higher the value, the higher the restrictions. the negative significance of the variable will confirm the statement of grim (2012) and mehrara et al. (2017) that an increase in restriction distorts economic growth and obstruct trade, especially in the related sector to religious beliefs like halal food. 1.4 estimation model using our study objectives as a guide, we propose using poisson pseudo-maximum likelihood (ppml) as the primary method for our panel data analysis. due to its capacity to resolve econometric challenges of gravity trade estimation, the approach is one of the most often used estimators in recent scholarship (kuik et al., 2019; shepherd et al., 2019). silva et al. (2006) identified several crucial aspects that must be considered while evaluating gravity models. due to heteroscedasticity, heterogeneity, and autocorrelation, the employment of a log-linearized model can result in very misleading and skewed estimates. they underlined that several econometric applications ignore the fundamental fact that the expected value of the logarithm of a random variable is distinct from its expected value (e(ln y) ≠ ln e(y)). in heteroskedasticity, such as huge volumes of cross-sectional data, interpreting parameters using log-linearized model estimation generates skewed estimations of the genuine elasticities. the gravity model is one of the instances in which heteroscedasticity, heterogeneity, and autocorrelation are found due to the composition of cross-sectional data distributed through time, the variance in country characteristics, and the volume of trade flow between small and major nations. the second economic concern is the regular occurrence of zero trade values in the bilateral trade observation. the presence of a dependent variable with a zero value complicates the usage of the log-linear form of the gravity equation. the logarithm of 0 is undefined in mathematics. two typical approaches have been used to address the zero-trade flow issue: i removing the zero-trade pairs from the data set and (ii) altering the data by adding minor values, such as one to the value of the dependent variable, and then estimating the model in log-linear form. however, both methods present estimating difficulties. the zero-trade value has statistical significance; omitting or altering it might result in sample selection bias and inconsistent estimators of the parameters of interest (kabir et al., 2017). to address these econometric concerns, silva et al. (2006) proposed estimating the gravity equation using the ppml. the method is consistent in the presence of heteroscedasticity and gives a simple solution to deal with dependent variable values of zero. since the ppml estimator is not required to linearize the model through logarithms, the issue of zero-trade value is eliminated (shepherd et al., 2019). it retains total trade flows between the actual and estimated bilateral trade matrices, resolving the "adding up" problem posed by other gravity model estimators (in which total forecast trade surpasses total actual trade). the poisson regression model is defined by silva et al. (2010) as follows: pr(𝑦𝑖 = 𝑗|𝑥𝑖) = exp(−𝜆)𝜆𝑗 𝑗! , 𝑗 = 0,1,2, … (4) where λ is generally specified as λ = exp(𝑥𝑖 ′𝛽) = exp(𝛽0 + 𝛽1𝑥1𝑖 + ⋯ ). the 𝛽 is the vector of parameters of interest which can be estimated by maximizing the loglikelihood function given by ln l(β) = ∑ [− exp(𝑥𝑖 ′𝛽) + (𝑥𝑖 ′𝛽)𝑦𝑖 − ln (𝑦𝑖!) ]𝑛 𝑖=1 (5) the ppml is widely accepted and has been used as the primary estimation method in numerous recent gravity publications, including head et al. (2010), dai et al. (2014), dutt et al. (2020), bojnec et al. (2015), cestepe et al. (2015), saucier et al. (2017), larch et al. (2018). the robustness of the ppml estimation result will be evaluated by comparing it to the heckman sample selection (hss) estimation result. shepherd et al. (2019) also advocated hss as an alternative gravity model estimator with ppml. hss is innately able to incorporate zero trade observations into the dataset. it permits independent data-generation procedures for zero and nonzero values. compared to ppml, the hss is less advantageous when dealing with heteroskedasticity. as a result, it is less frequently utilized as a gravity model workhorse estimator. nonetheless, newer works such as natale et al. (2015) and ehrich et al. (2018) used the hss as their primary estimation technique. to determine the consistency of estimated coefficients, we also decided to compare the estimation result with the classic log-linearized model, including ordinary least squares (ols), two-stage least squares (2sls), and random effects model (re). the dependent variable was modified to incorporate zero observations in the dataset. even though silva et al. (2006) do not suggest this method, it is still one of the most common methods used in the literature for comparison and robustness testing (natale et al., 2015). notably, we decided to compare the estimated agbioforum, 24(1), 2022 | 185 hamid, charoenchang and dewandaru. — halal food and beverage trade: do restriction on religion, halal certification, and oic… findings of the random effect model over the fixed effect model since certain of our dependent variables, including oict and hco, are time-invariant. the fixed effect model cannot quantify the effects of various halal trade drivers. 2. data and sources the study utilized data collected between 2007 and 2016. this examination period is constrained by the availability of restricted religious data, one of the variables of interest. in addition, the study did not omit the period of the global financial crisis (2007-2008) due to the necessity of f&b products to be less elastic to the effects of the financial crisis. there are 58 countries and 1 self-governing territory in the sample data (hong kong). these can be classified into 20 oic nations chosen based on their economic size (among the top 100 countries in the world) in 2017. other 39 non-oic members were chosen based on the value of their food and beverage exports to the global market, as reported by the un comtrade database. the sample nations are listed in appendix a. the limited halal commerce database is one of this study's greatest obstacles. as far as we know, no specific trade statistic captures the value of certified halal items, except malaysia's self-reporting (international trade centre, 2015 pp x). to determine the value of the halal trade, we apply the wto assumption on the trade concerns database (stc) when allocating hs codes, which states: "to assign an hs code to this product, some assumptions had to be made. in particular, when an stc refers to 1. food-related products. a broad definition is, in general, used. this includes all hs codes at the 4-digit level from 01 to 04, 07 to 12, 15 to 22, and 33. note that for: c. halal products: a broad definition of food excluding swine meat, live animals, and alcoholic beverages d. halal food: defined as halal products excluded cosmetics." (technical barriers to trade: specific trade concerns database, 2018)3 the value of exports (in us dollars) was employed as a proxy for bilateral trade flows. according to shepherd et al. (2019), the factors used in the gravity model should be included in bilateral trade. he also stated that the worth must be expressed in nominal rather than actual terms. multilateral resistance terms, which consist of price indices, significantly decrease the export value. consequently, deflating exports using various price indices, such as the cpi or the gdp deflator, would not sufficiently represent the unobserved multilateral resistance terms and could give misleading results. similarly, nominal gdp (usd) was utilized as a proxy for the economic size of trade partners. according to the gravity model, the gdp is a suitable proxy. however, 3https://www.wto.org/english/res_e/publications_e/readm e_tbt_stc_e.doc nominal aggregate gdp numbers, not real terms or gdp per capita, are misleading (shepherd et al., 2019). in gravity literature, the gdp per capita has occasionally been employed as a separate independent variable to represent the income level but not the economic scale specified in the theoretical gravity model. in this analysis, the distance (in kilometers) between the capital cities of the partners was utilized. the greater distance results in increased transport costs and delivery times, which inhibits trade flows. since economic distance data is unavailable for all sample countries, the use of geographic distance is acceptable. it has been utilized in the majority of published works, such as antonucci et al. (2006), francois et al. (2013), natale et al. (2015), wong et al. (2016), and others. the variables of interest include the effect of oic membership (oict), well-recognized halal certification (hco), and the degree of religious restriction in the exporting nation (gri and shi). we imposed dummy variables for trade between oic members (oict) and exporters having a recognized halal certification organization (hco) in their respective countries. the benchmark for the recognition certifications is a list of halal certifying bodies accredited by malaysia's jakim and indonesia's mui, the two most widely recognized halal standards and accreditation systems. in addition, we include countries that are members of the standards and metrology institute for the islamic countries (smiic), which serves as the oic's agency for harmonized standards. appendix d contains an illustration of the approved halal certification dummy's specifics. since 2007, the pew research center's government restrictions index (gri) and social hostility index (shi) have served as proxies for the degree of religious freedom limitations. the pew study uses the methodology of grim et al. (2010) to quantify and measure the degree to which governments and social groupings interfere with the practice of religion in 198 countries and self-governing territories. according to the pew research, the indices are analyzed using documentary sources and survey questionnaires with a double-blind coding procedure. the gri is based on indications of national and local government restrictions on religion, including coercion and violence. the shi is based on indicators of ways private individuals and social groupings infringe on religious beliefs and practices, including religiously biased crimes, mob violence, and measures to halt the growth or operation of particular religious groups. the values of both indexes were calculated and adjusted according to the value range of zero to ten, with a larger index value indicating a higher level of religious restriction. in addition to the exchange rate, level of income, regional trade agreement, shared language, common border, colonial https://www.wto.org/english/res_e/publications_e/readme_tbt_stc_e.doc https://www.wto.org/english/res_e/publications_e/readme_tbt_stc_e.doc agbioforum, 24(1), 2022 | 186 hamid, charoenchang and dewandaru. — halal food and beverage trade: do restriction on religion, halal certification, and oic… relationship, and landlocked commerce, other control factors were drawn from the common significant variables discovered in research on gravity trade. the statistics for these variables were acquired from reputable sources such as the world bank's world development indices (wdi), the cia's world factbook, and others. table 4 offers a summary of the factors utilized in the investigation. 3. results and discussion the estimation follows the same process as the earlier question. the ppml result is displayed in table 1 below. the table above displays six different regression results. the first result is for the base model, followed by adding specific individual focus variables to regressions 2 to 5. the result displays both the focus and control variables. most base model variables are statistically significant, and the coefficient signal follows most kinds of literature table 1 (1) (2) (3) (4) (5) (6) hfeij hfeij hfeij hfeij hfeij hfeij lgdpi 0.643*** 0.584*** 0.645*** 0.668*** 0.672*** 0.635*** (18.73) (15.19) (18.19) (18.38) (21.57) (16.00) lgdpj 0.681*** 0.675*** 0.683*** 0.679*** 0.679*** 0.678*** (16.57) (15.92) (16.28) (16.15) (16.59) (15.25) ldist -0.432*** -0.403*** -0.429*** -0.478*** -0.467*** -0.458*** (-6.85) (-5.84) (-6.66) (-7.79) (-7.53) (-6.96) lfxij -0.0453*** -0.0372** -0.0452*** -0.0490*** -0.0416** -0.0395** (-2.60) (-2.09) (-2.60) (-2.69) (-2.45) (-2.20) lgdpci -0.155*** -0.126*** -0.154*** -0.243*** -0.241*** -0.262*** (-3.80) (-2.87) (-3.73) (-5.24) (-6.27) (-5.58) lgdpcj 0.00377 0.00606 0.00491 0.00799 -0.00213 0.00952 (0.06) (0.10) (0.08) (0.13) (-0.04) (0.16) rta 0.848*** 0.861*** 0.856*** 0.730*** 0.826*** 0.788*** (7.29) (6.39) (7.17) (6.19) (7.15) (5.99) lan 0.312** 0.218 0.299** 0.345** 0.300** 0.216 (2.32) (1.61) (2.16) (2.53) (2.28) (1.55) border 0.765*** 0.815*** 0.764*** 0.776*** 0.732*** 0.788*** (4.97) (4.97) (4.97) (5.05) (4.84) (4.98) col -0.0826 -0.0502 -0.0737 -0.161 -0.0737 -0.0828 (-0.55) (-0.35) (-0.49) (-1.01) (-0.49) (-0.53) landlock -0.751*** -0.831*** -0.744*** -0.755*** -0.738*** -0.792*** (-4.85) (-5.26) (-4.76) (-4.57) (-4.73) (-4.79) hco 0.694*** 0.628*** (4.78) (4.35) oict 0.105 0.241 (0.62) (1.31) grii -0.0770*** -0.0517** (-3.27) (-2.21) shii -0.0842*** -0.0667*** (-6.49) (-4.93) _cons -12.22*** -11.56*** -12.39*** -11.33*** -11.44*** -10.79*** (-6.84) (-6.18) (-6.46) (-6.19) (-6.54) (-5.42) n 34220 34220 34220 34220 34220 34220 r-sq 0.617 0.606 0.617 0.611 0.612 0.600 note: t statistics are in parentheses (). statistical significance at the 10%, 5% and 1% levels are indicated by *, ** and *** respectively. agbioforum, 24(1), 2022 | 187 hamid, charoenchang and dewandaru. — halal food and beverage trade: do restriction on religion, halal certification, and oic… except that which is common (lan). for the four additional factors, we discovered that halal certification (hco) had a considerable beneficial effect on the value of halal food and beverage commerce (estimations 2 and 6). with all other conditions held constant, nations with recognized halal certification have a 0.6% greater ability to export halal food and drink than those without such accreditation. numerous studies have emphasized the importance of halal certification on consumer decision-making, particularly among muslim consumers, and this result is consistent with the literature and theoretical predictions (blind et al., 2018; shafie et al., 2006). the oic membership (oict) appears to have a negligible impact on the value of halal f&b commerce (estimates 3 and 6), indicating that there is no substantial difference in the value of trade between oic members compared to trade with non-oic nations. the outcome is contrary to our expectation that this component would have a major beneficial influence due to the oic's overarching purpose and 10-year action plan. comparing this conclusion to the trade agreement factor (rta), which has a strong positive impact on trade, suggests that oic membership does not produce considerable trade benefits between its members, at least in the case of halal food and beverages. it could be due to a lack of food production or the distance between members. nonetheless, this raises questions for oic officials on the need for more improvements if they wish to maximize the value of intra-member commerce. this conclusion confirms the findings of gundogdu (2009), who suggested that the increase in intra-oic trade was related to oil price spikes and currency fluctuations rather than the cooperation's effectiveness. the government restriction on religion (grii) and social hostility concerning religion problem (shii) have a substantial detrimental influence on the halal food and beverage industry (estimations 4, 5, and 6). the result demonstrates that religious restrictions have a distorting effect on the halal trade. generally, nations with higher grii and shii will have less success exporting halal food and beverages than countries with lower restrictions. the result verifies the assertions of grim (2012) and krammer et al. (2018) that an increase in the amount of a restriction distorts economic growth and can be a significant trade disincentive, particularly in a religiously-motivated sector like halal. 3.1 robustness test we explore the robustness of our regression finding by retesting the determinants using multiple estimating techniques, including hss, pols, 2sls, and re. the outcome of the robustness test is displayed in the table below. focusing primarily on the four focus variables of this topic (hco, oict, grii, and shii), we discovered the consistency and robustness of the four variables' estimation results across most estimation methods. only an estimation using re demonstrates negative significance for oict and insignificance for shii, whereas all other approaches demonstrate insignificance for oict and negative significance for shii. consequently, based on ppml and the robustness test, we can conclude that the nations that have recognized halal certification (hco) considerably benefit the export value of halal food and beverages. there is no substantial variation in the value of halal f&b commerce between intra-member trade and trade between oic and non-oic countries due to oic membership (oict). the level of religious restriction in a country (both grii and shii) has a detrimental impact on the value of its halal food and beverage exports. 4. conclusion the 59 sample countries were picked jointly from oic and non-oic nations. the oics were chosen based on their economical size, while the non-oics were nominated based on the value of their exports of food and beverages. the estimation period is between 2007 and 2016 because of data availability for one variable of interest, religious restriction. the study adhered to the standard and most widely known technique for international trade research. it used the gravity model of international trade as the foundational model. it estimated the result using the ppml method, which is the workhorse and most recommended estimator for the gravity model (shepherd et al., 2019). the tested variables included the size of the economy (lgdpi and lgdpj), the distance (ldist), the level of income (lgdpci and lgdppcj), the exchange rate (lfxij), the regional trade agreement (rta), the common border (border), the common language (lan), the colonial relationship (col), and landlocked trade (landlock). additionally, we added a few more variables that we deemed important for examining their influence on the halal f&b trade. these additional variables include halal certification (hco), oic membership (oict), and religious restriction (grii and shii). according to the gravity model, the impact of economic size (lgdpi and lgdpj) and distance (ldist) on trade flows between two countries are proportionate to their economic size and inversely proportional to the distance between them (bialynicka-birula, 2015). in the case of halal f&b commerce, this proposition holds across all levels of tested estimations. for additional components, which are regarded to be a component of "the total of all trade resistance terms except distance" or the r ijt term in the gravity with gravitas model of anderson et al. (2003), we discovered: the income level of trading partners has varying effects on the value of halal food and beverage trade between them. while the exporting country's income level (lgdpci) harms the value of its halal f&b exports, the importing country's income level (lgdpcj) does not affect the trade. the increased income level implies a higher production level and a rise in consumer demand. agbioforum, 24(1), 2022 | 188 hamid, charoenchang and dewandaru. — halal food and beverage trade: do restriction on religion, halal certification, and oic… the conclusion may indicate that, in general, individuals prefer home food and beverages that are tailored to their tastes over international items. thus, when individuals have more disposable income, their increased demand for domestic f&b diminishes the value of exportable goods (in the case of lgdpci). alternatively, when food production is higher, it reduces the demand for imported foodstuffs (in the case of lgdpcj). in a global context, the exchange rate (lfxij) that determines the pricing element of the items continues to play a significant role in the trade flow. from the perspective of importers, the exporter's products become more expensive due to the appreciation of their currency. thus, the country's ability to import is diminished, and it may seek alternative trading partners that can provide identical products at a lower price. in terms of geographical determinants, the outcome of table 2 (1) (2) (3) (4) (5) ppml hss pols 2sls re lgdpi 0.635*** 0.941*** 1.966*** 1.966*** 1.476*** (16.00) (23.78) (30.88) (30.90) (23.25) lgdpj 0.678*** 0.585*** 0.952*** 0.952*** 0.952*** (15.25) (19.73) (18.12) (18.13) (16.99) ldist -0.458*** -0.805*** -1.280*** -1.280*** -0.923*** (-6.96) (-15.58) (-10.79) (-10.80) (-7.17) rta 0.788*** 1.115*** 1.287*** 1.287*** 2.210*** (5.99) (9.39) (5.43) (5.44) (8.82) lan 0.216 0.454*** 1.492*** 1.492*** 1.715*** (1.55) (3.44) (4.68) (4.68) (5.12) lfxij -0.0395** -0.00641 -0.0754*** -0.0754*** -0.0845*** (-2.20) (-0.53) (-3.65) (-3.65) (-3.72) lgdpci -0.262*** -0.312*** -0.946*** -0.946*** -0.597*** (-5.58) (-7.04) (-11.92) (-11.93) (-8.42) lgdpcj 0.00952 0.0722** 0.220*** 0.220*** 0.154** (0.16) (2.07) (3.58) (3.58) (2.43) border 0.788*** 0.835*** 0.0517 0.0517 0.340 (4.98) (4.64) (0.12) (0.12) (0.76) col -0.0828 0.244* -0.331 -0.331 -0.671** (-0.53) (1.88) (-1.03) (-1.03) (-1.97) landlock -0.792*** -0.864*** -1.752*** -1.752*** -1.675*** (-4.79) (-7.26) (-5.66) (-5.66) (-5.40) hco 0.628*** 0.999*** 1.075*** 1.075*** 1.407*** (4.35) (10.91) (6.37) (6.37) (7.95) oict 0.241 0.206 0.467 0.467 -0.687* (1.31) (1.40) (1.19) (1.19) (-1.79) grii -0.0517** -0.113*** -0.430*** -0.430*** -0.165*** (-2.21) (-5.49) (-12.14) (-12.15) (-7.28) shii -0.0667*** -0.0395** -0.328*** -0.328*** 0.0177 (-4.93) (-2.38) (-8.64) (-8.65) (1.30) _cons -10.79*** -15.30*** -42.40*** -42.40*** -37.49*** (-5.42) (-11.60) (-16.58) (-16.59) (-14.83) n 34220 34220 34220 34220 34220 r-sq 0.600 0.351 0.351 note: t statistics are in parentheses (). statistical significance at the 10%, 5% and 1% levels are indicated by *, ** and *** respectively. agbioforum, 24(1), 2022 | 189 hamid, charoenchang and dewandaru. — halal food and beverage trade: do restriction on religion, halal certification, and oic… landlocked trade (landlock) conforms to the theoretical prediction. trade with landlocked nations is more difficult and demands higher transportation costs. according to a world bank policy research working paper, the cost of transportation in landlocked nations is, on average, 30% higher than in coastal nations, making landlocked nations the source of the majority of lowincome economies (20 out of 54) arvis et al. (2007). the negative significance of the variable landlock at all analysis levels confirms this trade barrier's impact. theoretically, having a shared border is advantageous for trade between the two countries due to the ease of transporting commodities. in general, the lan continues to serve an important role in facilitating bilateral trade. on a global scale, it appears that the impact of col on the halal food and beverage economy is diminishing. the insignificant outcome validates head et al. (2010).'s hypothesis that the superior influence of colonial relationships on international trade has diminished after decades of colonial rule. regarding trade cooperation determinants, we utilize the rta variable to stand in for major trade agreements such as eu, afta, laia, asean, nafta, and saarc. then we separate the oict variable to assess the influence of oic trade cooperation. overall, the data demonstrate that rta remains a potent tool for boosting member trade. in addition, the subject of religious freedom restrictions is one of our variables of interest. we believe this is one of the most significant issues distorting the halal food and beverage industry, as the industry is tied to religious principles and a high restriction is likely to harm the nation's competitiveness. in addition, the significant restrictions in non-oic countries indicate a lack of flexibility for muslim minorities to practice their halal organization. the regression result verifies our hypothesis that the limitation on religion (grii and shii) has a detrimental effect on the total value of halal f&b commerce. this gives empirical evidence for the theory and reuters (2017) bejarano's assertion that religious bias is a significant obstacle to halal trade. although we cannot infer whether the restriction is justified, current research indicates that high levels of gri and shi are closely associated with institutional environment and national competitiveness-distorting conflict (grim et al., 2014). for the entire country's population's benefit, preserving the harmony between the many religious groups in society is necessary. references abdul, m., ismail, h., hashim, h., & johari, j. 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(2016). does monetary policy matter for trade? international economics, 147, 107-125. doi: https://doi.org/10.1016/j.inteco.2016.04.001 https://books.google.co.in/books?hl=en&lr=&id=4bsq9d9biaac&oi=fnd&pg=pa195&dq=urata https://books.google.co.in/books?hl=en&lr=&id=4bsq9d9biaac&oi=fnd&pg=pa195&dq=urata https://doi.org/10.1016/j.inteco.2016.04.001 agbioforum, 24(1): 153-160. ©2022 agbioforum the effect of oil prices, oil demand, oil licensing round, oil product capacity, oil sector development, and inflation on the economic development of iraq's economy mohammad drai ahmed the university of mashreq/ baghdad/ iraq email: mohammad.d.ahmed@uom.edu.iq maki mahdi abdulhasan al-nisour university college/baghdad/iraq email: dr.makimahdi@yahoo.com hassan taher braiber accounting department, al-mustaqbal university college, babylon, iraq email: hassan.taher@mustaqbal-college.edu.iq zainab abed almoussawi college of islamic science /ahl al bayt university /kerbala / iraq email: zainabalmoussawiii@gmail.com nidhal raheem mardood accounting and economics/ al-esraa university college, baghdad, iraq email: nidhal@esraa.edu.iq hareth shallan moshref alaamery al-amarah university college/ al-amarah, iraq email: harith.shealan@alamarahuc.edu.iq the oil-producing nations contribute significantly to the economic expansion of the oil exporting business. political instability and infrastructure degradation have negatively impacted iraq's economic growth. less economic stability is a significant factor in iraq's inflation rate. this study aims to determine the impact of oil prices, oil demand, licensing rounds, oil product capacity, oil sector development, and inflation on iraq's economic development. this research uses secondary data from papers and surveys to determine its findings. the study indicated that oil prices, oil demand, the oil licensing round, oil product capacity, oil sector development, and inflation have an essential impact on iraq's economic growth. this work is novel from a theoretical standpoint because previous research has ignored this gap in the literature. this study has produced empirical proof of economic growth in iraq due to the oil industry and the issuance of oil licenses to various enterprises, which has significant consequences for practice. key words: oil demand, oil prices, oil sector development, oil licensing, economic development 1. introduction in modern times, oil sector production and export are regarded as the most significant economic revolution and contributors to the growth of any nation that exports oil (al-jafar et al., 2019; axelgard, 2019). middle eastern countries are well-known for their oil production since they export substantial quantities of oil to meet the demands of the rest of the world's non-oil exporting nations (kraidi et al., 2020; salim et al., 2021). iraq is also one of the world's largest oil suppliers, enabling the rest of the world to meet its energy needs (abdullah et al., 2021; qais et al., 2019). iraq's economy primarily depends on the oil and gas industry, which helps the stability of the economic crises to the benefit of the people (h. s. m. alobaidi, 2022; alshami et al., 2022). similarly to other gulf countries, iraq's oil and gas output climbed in 2012 as the global demand for iraqi oil increased (abbas et al., 2020; al-khazraji et al., 2020). oil output is directly proportional to demand since huge firms refine oil according to the demand of importing countries' populations (handhal et al., 2020; wu et al., 2018). the oil industry in iraq is not always booming, and the economic problem is also growing (m. a. abbas et al., 2019; ahmad, 2018). the crisis in any economy is a significant impediment to advancement. consequently, the iraqi government must emphasize oil production and its equitable distribution to consumer nations to improve their learning (abdul-majeed et al., 2020). the foreign ties of many countries with iraq depend on iraq's oil exports to the rest of the world (al-khafaji et al., 2020; el diasty et al., 2018). the conflict between iraq and other oil-exporting nations is crucial to the nation's economic development (qader et al., 2021; saymour, 2022). the nation has viewed oil production and export as key factors in international relations and economic development (albidhani et al., 2019; fadhel et al., 2019). due to iraq's status as a war zone, less attention is paid to the oil sector and the maintenance of its logistical infrastructure. as a result, the country's oil exports have been constrained (albidhani et al., 2019; shlimon et al., 2020). united nations limits on oil exports pose a significant obstacle to the iraqi government's efforts to strengthen the oil sector (ali et al., 2019; chen et al., 2022). particular countries have different economic growth drivers; iraq's oil-producing industry, which is developing and contributing to the country's development, is the most important economic growth engine (al-hawash et al., 2018; jirjees et al., 2019). the economic war between iraq and other oilproducing nations is in constant conflict with iraq's economic status, which is not conducive to economic growth (s. a. m. al-obaidi, 2021; li et al., 2018). since 2012, iraq's oil production has increased despite the inefficiency of its logistic system to support the economy in a manner conducive to attaining sustainable development and meeting the oil demand of consuming mailto:mohammad.d.ahmed@uom.edu.iq mailto:dr.makimahdi@yahoo.com mailto:hassan.taher@mustaqbal-college.edu.iq mailto:zainabalmoussawiii@gmail.com mailto:nidhal@esraa.edu.iq mailto:harith.shealan@alamarahuc.edu.iq agbioforum, 24(1), 2022 | 154 ahmed, abdulhasan, braiber, almoussawi, mardood and alaamery. — the effect of oil prices, oil demand, oil licensing round, oil …. nations (al-obaidy et al., 2019; mahibes et al., 2020). different refineries in iraq are working to build the oil industry profitably, but the country's economic progress is intimately tied to its political development (ahamad et al., 2019; buraq a al-baldawi et al., 2019; almalikee et al., 2019). therefore, the government in every nation must improve economic growth with the political stability required for foreign direct investment in the country's economic stability (ahamad et al., 2019). there have been times of increased and decreasing export of iraqi oil (aljaberi et al., 2020). figure 1 depicts the oil exports of iraq. figure 1. iraqi oil exports source: iraq energy institute numerous studies from the past that are well-known for their theoretical and practical contributions analyze the iraqi economy (limin et al., 2019). undoubtedly, the economy's stability depends on the country's exports and imports (m. a. abbas et al., 2019; zhong et al., 2018). in iraq, the government is upgrading its facilities to an advanced level to expand them to an appropriate level (moosajee, 2018). the fundamental level of economic growth is achievable through oil exports (al-fehdly et al., 2019; saleh et al., 2021). since iraq is one of the world's major exporters of oil and gas, it is one of the largest oil and gas producers (kraidi et al., 2019). many of europe rely on iraq for their oil and gas needs (al-jafar et al., 2019). according to the study of qais et al. (2019), economic growth in iraq is attainable given political stability. wu et al. (2018) concluded that the poor economic position in iraq is a result of the warzone area since it has harmed iraq's infrastructure and logistics. axelgard (2019) showed that iraq's infrastructure had been degraded since 2004 when the war in iraq was at its height. in nations that have failed to sustain political stability, there are fewer opportunities for economic achievement. the iraqi populace should prioritize economic growth, while the government must promote its oil industry (m. a. abbas et al., 2019). different perspectives on iraq's robust economic growth have been expressed in the available literature. however, there is a lack of research on both the theoretical and practical implications of the role of oil production and the oil demand sector in the country's economic growth. indeed, iraq's economy had several ups and downs due to political instability (kraidi et al., 2020; qais et al., 2019). however, in addition to political factors, other variables contributed to iraq's economic success (kraidi et al., 2020). from 2012 to 2022, iraq's economy saw a variety of fluctuations, as depicted in figure 2. agbioforum, 24(1), 2022 | 155 ahmed, abdulhasan, braiber, almoussawi, mardood and alaamery. — the effect of oil prices, oil demand, oil licensing round, oil …. figure 2. economic situation of iraq from 2012 to 2022 source: trading economics this study aims to determine the impact of oil prices, oil demand, licensing rounds, oil product capacity, oil sector development, and inflation on iraq's economic development. this study adapted this research from the literature to present empirical proof for iraq's economic growth advancement. undoubtedly, the current corpus of literature has previously explored several facets of economic growth in iraq associated with the oil industry (al-fehdly et al., 2019; kraidi et al., 2019; saleh et al., 2021). however, no specific study has addressed the uniqueness of research concerning sustainable economic growth and the impact of oil prices, oil demand, the oil licensing round, oil product capacity, oil sector development, and inflation on the growth of the iraqi economy. this study is theoretically unique because no other research has addressed this topic in such depth. on the other hand, the practical consequences of this research are noteworthy since this study has produced evidence of economic growth in iraq's oil sector and oil licensing to various firms. this research is based on secondary data from multiple sources to contribute to iraq's economic growth. on the other hand, the future directions of this research are noteworthy for future studies that will address the additional vacuum in the literature concerning the modern economic expansion of iraq. 2. literature review the fluctuation of oil prices is a significant problem for nations that export oil to others (kraidi et al., 2019). indeed, oil prices are determined by worldwide markets, but the government also plays a significant role in managing oil prices (saleh et al., 2021). the oil prices of countries experiencing economic crises are significantly lower than those of developed nations (al-fehdly et al., 2019). undoubtedly, oil prices play a significant role in international wars, but the oil prices in iraq fluctuate due to political instability and worldwide market trends (alfehdly et al., 2019). the iraqi government must decrease oil prices below market levels and enhance its oil transportation infrastructure (moosajee, 2018). iraq's economic growth is achievable if the country's economic development is based on oil prices (zhong et al., 2018). due to a decrease in oil output and availability, global oil prices rise over time (m. a. abbas et al., 2019). in their quest to export oil, oil-producing nations such as qatar, saudi arabia, and iran are targeting diverse markets, which significantly impacts oil prices (limin et al., 2019). similarly, this oil crisis has posed a challenge to the nation's economic development that is not optimal for the people (buraq adnan al-baldawi, 2020). the iraqi government must sustain oil pricing with foreign players to stimulate the economy. population and oil usage in various industries contribute to a rise in oil demand in many nations (al-jafar et al., 2019). working in different nations, the refineries refine crude oil for the population and its consumption (axelgard, 2019). the oil demand is directly related to production (salim et al., 2021). the oil-producing nations are focusing on the export demand for oil production (kraidi et al., 2020). since 2009, iraq has boosted oil production, since oil demand has surged by 123%. (qais et al., 2019). similarly, economic sustainability supports the expansion of the economic sector in iraq (abdullah et al., 2021). iran and qatar are also increasing their oil output because the market is growing (alshami et al., 2022). however, the total oil export by iraq is essential to the economic stability that requires it (h. s. m. al-obaidi, 2022). increasing oil demand from china, europe, and asian nations is causing the iraqi economy to adapt by exporting oil to these regions (abbas et al., 2020). in addition, oil prices have a crucial role in the export of crude oil when there are numerous rivals on the market (al-khazraji et al., 2020). iran's oil prices have decreased due to market competition (handhal et al., 2020). because iraqi refineries export high-quality oil, the iranian oil demand does not exceed iraq's crude oil production (a. k. abbas et al., 2019). the oil markets are expanding, contributing to the nation's economic expansion (al-jafar et al., 2019). the oil-producing well in iraq satisfies the need for oil exports in the vast global agbioforum, 24(1), 2022 | 156 ahmed, abdulhasan, braiber, almoussawi, mardood and alaamery. — the effect of oil prices, oil demand, oil licensing round, oil …. market (axelgard, 2019). the development of the oil industry is essential to the country's economic viability (kraidi et al., 2019). various variables contribute to the economic expansion of various nations. similarly, in iraq, the role of oil sector development is essential because the oil sector contributes significantly to iraq's exports of commodities (al-fehdly et al., 2019). the political instability in iraq is a significant obstacle for the iraqi government as it attempts to grow the oil industry (moosajee, 2018). the proper development of iraq's economy is contingent on improving the oil industry (zhong et al., 2018). as a result of the decreased cost of oil exports, the logistics for exporting oil in iraq have been improved, contributing to the growth of the oil sector (limin et al., 2019). in oil-producing countries, economic progress is intimately tied to oil output (buraq adnan albaldawi, 2020). stability in economic growth is required for political sustainability (ahamad et al., 2019). the united nations' prohibition of iraq's oil exports posed a significant obstacle to iraq's economic development (almalikee et al., 2019). the terms and conditions of iraq's oil supply pose a barrier to the government's ability to sustain economic growth (al-obaidy et al., 2019). the american war in iraq decreased oil output because of a significant infrastructure difficulty (jirjees et al., 2019). similarly, the restriction on iran's oil exports harmed iran's economy, much as the american war in iraq harmed iraq's economic progress (s. a. m. al-obaidi, 2021). oil licenses are essential to expand oil production and export from its refinery (al-jafar et al., 2019). the oil-producing nations are granting oil sector licenses to various global corporations (axelgard, 2019). multiple multinational corporations labor in qatar to export oil and support the government's economic expansion (salim et al., 2021). financial sustainability is attainable when the most productive firms in the oil industry are granted licenses (kraidi et al., 2020). the importance of the oil sector's supporting sectors stems from the contribution these businesses make to economic growth (qais et al., 2019). oilproducing enterprises are responsible for producing and refining crude oil for the market (abdullah et al., 2021). the multinational corporations operating in iraq should improve their level of knowledge by enhancing their working capacity (abbas et al., 2020). the licenses should be provided to enterprises functioning in the oil sector through foreign direct investment (wu et al., 2018). in russia, the number of oilproducing enterprises has expanded due to issuing several licenses to international firms that can work for it (ahmad, 2018). foreign direct investment has enhanced russia's oil exports, which contributes to the country's economic viability (fadhel et al., 2019; saymour, 2022). figure 3 depicts the conceptual framework describing the effects of the variables in this investigation. figure 3. study conceptual framework for economic development 3. research methodology this study utilizes secondary data to give empirical evidence regarding the impact of oil industry performance on economic growth in iraq. earlier research on the importance of the oil industry in various nations is also based on secondary data extracted from different papers and documents (ahamad et al., 2019; buraq adnan albaldawi, 2020; al-jaberi et al., 2020). similarly, secondary data are included in this analysis because reports and other papers about iraq's oil sector's performance are readily accessible. on the other hand, this study uses data from previously published research papers on oil sector demand (al-jafar et al., 2019; axelgard, 2019), oil licensing (abdullah et al., 2021; alshami et al., 2022; qais et al., 2019), and the oil sector's contribution to economic growth (a. k. abbas et al., 2019; abdullah et al., 2021; ahmad, 2018; alshami et al., 2022; handhal et al., 2020). the data from past research were thoroughly analyzed to oil prices oil demand oil licensing oil sector development economic development agbioforum, 24(1), 2022 | 157 ahmed, abdulhasan, braiber, almoussawi, mardood and alaamery. — the effect of oil prices, oil demand, oil licensing round, oil …. give empirical evidence on the effect of oil prices, oil demand, oil licensing rounds, oil product capacity, oil sector development, and inflation on iraq's economic development. similarly, our study has utilized these statistics to comprehend the impact of the oil business on iraq's economic growth. in addition, this study has used this fact to draw relevant conclusions that would boost the economic growth of iraq through oil sector development. 4. findings this research has uncovered a rise in various oil industry industries in iraq. the findings of this study indicate that iraq's oil demand climbed by 200 percent between 2003 and 2021. (al-fehdly et al., 2019; moosajee, 2018; saleh et al., 2021). in addition, this analysis determined that iraq's oil prices climbed by 79% between 2003 and 2021. similarly, this analysis revealed that iraq's number of oil licenses increased by 13% between 2003 and 2021. from 2003 to 2021, iraq's oil industry development expanded by 44%, according to the findings of this study. from 2003 to 2021, these factors indicate that oil demand, oil prices, and licensing to the oil supporting industry and oil sector are increasing in iraq. indeed, this increase strongly impacts iraq's economy (see table 1). table 1. increase from 2003 to 2021 no variables increase from 2003 to 2021 1 oil demand 200% 2 oil prices 79% 3 oil licensing 13% 4 oil sector development 44% in addition, this study determined that the performance of iraq's oil industry increased alongside the country's economic growth (albidhani et al., 2019; ali et al., 2019; fadhel et al., 2019; shlimon et al., 2020). in this regard, statistics indicate that iraq's oil sector logistics and infrastructure rose by 17% in 2003, while oil sector economic development increased by 5%. moreover, according to the statistics, iraq's oil sector logistics and infrastructure rose by 19% in 2004, while oil sector economic development increased by 7%. in addition, statistics indicate that iraq's oil industry logistics and infrastructure rose by 16% in 2005, while economic growth in the oil sector increased by 4%. similarly, statistics indicate that iraq's oil sector logistics and infrastructure rose by 23% in 2006, while oil sector economic development increased by 5%. moreover, according to the statistics, iraq's oil sector logistics and infrastructure rose by 34% in 2007, and oil sector economic development increased by 2%. moreover, statistics indicate that iraq's oil industry logistics and infrastructure expanded by 16% in 2008, while economic growth in the oil sector increased by 9%. iraq's oil sector logistics and infrastructure grew by 178% in 2020, while oil sector economic development increased by 114%, according to statistics. according to statistics, iraq's logistics and infrastructure expanded by 198% in 2021, while oil sector economic development increased by 127% (see table 2). table 2. oil industry performance and economic development in iraq years increase in oil sector logistic and infrastructure economic development in iraq with oil sector 2003 17% 5% 2004 19% 7% 2005 16% 4% 2006 23% 5% 2007 34% 2% 2008 16% 9% 2009 21% 14% 2010 54% 33% 2011 76% 49% 2012 60% 20% 2013 43% 15% 2014 78% 47% 2015 83% 52% 2016 121% 77% 2017 125% 80% 2018 117% 50% 2019 149% 120% 2020 178% 114% 2021 198% 127% 1. conclusion this study concludes that the iraqi government plays a significant role in the oil sector's performance in boosting the country's economic growth. iraq has become one of the world's leading oil producers, helping to meet the demands of other countries. the petroleum and gas business is a significant contributor to iraq's gdp, stabilizing the market and meeting the population's needs. in the meantime, as in other gulf states, iraq's oil output increased by 2013 as demand for iraqi oil increased globally. since enormous firms refine oil in response to consumer requests in nations that purchase it, the amount of oil produced is proportional to this demand. although the oil business in iraq is not consistently booming, the country's economic status is deteriorating. although the oil business in iraq is not consistently booming, the country's economic situation is worsening. any economy's problems are obstacles to progress. the responsibility of the iraqi government to emphasize oil production and its equal distribution to buyer nations is essential for enhancing their educational grasp. the oil exports from iraq to the rest of the globe affect international relations. the research indicates that economic progress in iraq is possible if the state's administration is keen to strengthen its ties with other nations to expand the oil business. because the price of crude is one of the most influential variables in the growth of iraq's oil income, the administration must enhance the procedures for stabilizing oil and gas prices on the market. according to this report, agbioforum, 24(1), 2022 | 158 ahmed, abdulhasan, braiber, almoussawi, mardood and alaamery. — the effect of oil prices, oil demand, oil licensing round, oil …. iraq's oil production cannot keep up with the market's expanding demand for oil, despite increasing the market's need for oil. to increase the efficiency of the petroleum industry, the iraqi government must attract foreign investment. if petroleum exporting enterprises operate more efficiently and move more heavy crude, iraq's infrastructure and logistical network must be enhanced. the worldwide agreement has a significant impact on economic development. there should be good relations between the iraqi government and its neighbors, and efforts must be taken to increase oil exports. 2. implementations this research has significant practical and theoretical consequences for the growth and development of the iraqi economy. the study introduced the literature relationship that oil demand substantially affects economic growth. in the case of iraq, no prior research has explored this role in the economy's sustainability. in addition, this study has demonstrated the critical influence of oil prices on iraq's economic growth for sustainable development. similarly, the older research did not examine this relationship between oil price swings and iraq's economic growth. thirdly, this study contributed to the literature by demonstrating that the licensing of different enterprises functioning in the oil support industry substantially impacts the economy's development when the government operates effectively. moreover, previous research only addressed the role of foreign direct investment in boosting the iraqi economy. consequently, this contribution to the corpus of knowledge is essential, as it has influenced the economic development of iraq. in addition, this study contributed to the literature by highlighting the importance of oil sector development in iraq for the country's financial sustainability. indeed, this research has developed a conceptual framework for the literature. second, this study has substantial practical consequences that are essential for the iraqi government to improve the oil sector's performance for the country's economic development. the study indicates that economic growth in iraq is achievable if the country's administration is interested in extending the oil market through international relations. the price of oil is one of the primary factors in the development of the oil sector in iraq; consequently, it is the government's job to increase policies for stabilizing oil prices on the market. similarly, the study revealed that the market's oil consumption is rising, but iraq's oil production is insufficient to supply this demand. therefore, the iraqi government should promote foreign direct investment to improve the oil sector's performance. the upgrading of iraq's infrastructure and the logistic system is also crucial for enhancing the ability of oil exporting corporations to refine and sell crude oil. indeed, the international accord has a significant impact on economic growth. the iraqi government should cultivate cordial relations with its neighboring nations and increase oil exports. 3. future directions intriguingly, the purpose of this study is to determine and assess the impact of oil prices, oil demand, oil licensing rounds, oil product capacity, oil sector development, and inflation on iraq's economic development. this study concludes that these characteristics are crucial to the economic prosperity of every nation. however, this study has several drawbacks. undoubtedly, oil prices are essential for the growth of the oil industry and its interactions with other nations. still, this study does not address the significance of international relations in the oil industry context. in this sense, scholars must consider iraq's foreign relations concerning the oil industry's performance. this study examines the idea of oil demand but does not address the function of oil production and refining. therefore, future studies should not be confined to the demand for oil but should instead stress iraq's capacity to satisfy market demand. thirdly, this study's approach is limited because it depends on secondary data. to establish this link's influence on the iraqi economy's growth, it will be necessary to perform more research based on the questionnaire's primary data. references abbas, a. k., hamed, h. m., al-bazzaz, w., & abbas, h. 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hence, all industries will cease to function, posing a severe problem for our nation. the agriculture sector in indonesia contributes to gdp, national revenue, and employment possibilities. despite this, indonesia's agriculture business is underdeveloped and confronts many impediments (david, 2017; von rintelen et al., 2017). if a nation wants agriculture to increase public welfare and spur national progress, resolving these issues becomes challenging. an agricultural revolution is required to make indonesia a great nation (nikolić et al., 2016; pranowo et al., 2022; tumiwa et al., 2022). indonesia is the largest agricultural nation in the world, and its biodiversity-rich land area is second only to brazil's. this is evidenced by the vast array of food crops, horticulture, plantations, and farms that have been farmed for centuries and serve as a source of food and societal prosperity. farmers are the agricultural industry's backbone. farmers are directly responsible for the sector's prosperity (cavicchioli et al., 2018; klerkx et al., 2019). farmers' interests are tightly tied to their income, but social stability and national economic progress are also directly linked to farmers' income. increasing farmers' incomes is their best hope from the perspective of their interests; from the perspective of rural development, poor rural public utilities are closely related to lower levels of farmers' income; and from the perspective of the national economy, if farmers' incomes do not increase, rural purchasing power will not be enhanced, domestic demand will not be able to grow, and the economy will not be able to develop (arif et al., 2019; balkrishna et al., 2022). farmers cannot become wealthy, and it is impossible to construct a thriving community on all fronts. increasing farmer income solves the problems impacting peasants, the countryside, and agriculture (birthal et al., 2017). consequently, it remains essential to comprehend the current situation of farmers' income and seek measures to increase it. literature suggests that farmers' income growth in indonesia is lower than gdp growth (hanggana, 2017; hutapea, 2018). farmers in indonesia face several significant problems, including 1) low returns due to low sale prices, 2) lack of funding and investment opportunities, 3) lack of adoption of new technology due to resource shortages, and 4) climate change (merten et al., 2021; sembiring et al., 2021). there is an immediate need to solve these concerns to support farmers and the agriculture industry. figure 1 illustrates the agricultural gdp of indonesia. the present study will address the following gaps in the prior literature: 1) every country in the world has some economic sectors regarded to be its lifeblood. farmers are the backbone of every nation's economy, especially in agriculturally dependent nations. particularly in developing countries, farmers are members of a substandard community. to boost their economies, the governments of these nations have made particular efforts to help their farmers through agriculture. although farmers' income has been studied extensively from many viewpoints and at various times, it has not yet achieved its zenith because many of its features remain to be investigated. 2) lativa et al. (2022) examined the effect of mailto:mhd.buhari@umsu.ac.id mailto:ikbar.p@gmail.com agbioforum, 24(2), 2022 | 48 sibuea, sibuea, pratama, siregar and putra. — analysis of the contribution of agribusiness microfinance institutions and government… crude oil exports on the income and employment of indonesian farmers; however, the current study will also examine farmers' income from microfinance institutions' profitability, agriculture credits, and government subsidies in indonesia using a new data set. 3) the equation consisting of farmers' income, agriculture credits, the profitability of agribusiness microfinance institutions, government subsidies, government agriculture loans, and economic growth has not been tested in recent years, notably in indonesia. 4) w. chen et al. (2022) researched farmers' income growth and rural digital constructs; however, the current study will focus on farmers' income from the perspective of government and agri-institutions using a new data set. 5) yang et al. (2022) also examined the farmer's income from the perspective of non-food cultivation; however, the current study will examine it from the perspectives of agriculture credits, agribusiness microfinance institutions' profitability, government subsidies, government agriculture loan, and economic growth with a new data set, focusing on indonesia. the significance of the present study is that it will 1) shed light on the importance of farmers in the country as well as their income for the betterment of their future, particularly in indonesia; 2) assist agriculture-related professionals in reviewing their policies with the intention of uplifting agriculture-related professionals, particularly farmers; and 3) enable researchers to investigate more aspects relating to the increase in farmers' income, particularly in indonesia. the opening includes a discussion of research gaps and significance. the second chapter discusses the literature regarding farmers' income, agriculture credits, the profitability of agribusiness microfinance institutions, government subsidies, government agriculture loans, and economic growth. the third chapter discusses techniques, including collecting data regarding farmers' income, agriculture credits, the profitability of agribusiness microfinance institutions, government subsidies, government agriculture loans, and economic growth. the fourth chapter presents the outcomes of the data analysis. the final chapter presents the study's conclusion, ramifications, and recommendations. figure 1: gdp from agriculture in indonesia source: global economy 2. literature review the article examines the effect of agricultural credits given by microfinance organizations, the profitability of agribusiness microfinance institutions, government subsidies, government agricultural loans, and economic growth on the income of indonesian farmers. agriculture is regarded as one of the most important contributors to the nation's economy, particularly in countries that have relied on agricultural products. farmers' prosperity is intimately linked to the performance of the agriculture industry. the improvement of the agriculture industry improves the financial situation of farmers. since farmers belong to a middle-class social class, they require government and private sector investment support. agriculture credits are, therefore, one of the aspects that play a crucial role in supporting farmers in terms of investment. the agriculture credits aid farmers in terms of increased output. better manufacturing results in increased sales revenue. in this context, chandio et al. (2018) investigated whether government or private-sector agriculture credits affect small-scale farmers' productivity. the investigation was conducted in 18 villages across three districts in the pakistani province of sindh. in 2016, a sample of 180 wheat producers was collected. with the assistance of the cd manufacturing function, the acquired data was evaluated. according to the investigation's findings, agricultural credit considerably affects wheat yield, with short-term loans having a greater impact than long-term loans. this may be partially attributable to the increased use of agbioforum, 24(2), 2022 | 49 sibuea, sibuea, pratama, siregar and putra. — analysis of the contribution of agribusiness microfinance institutions and government… agricultural inputs such as enhanced variety seeds and fertilizers, which can boost wheat yield in the same year. in contrast, ltl users have made far bigger investments in plant protection, irrigation, and land preparation, which may increase wheat output in the following years. similarly, koç et al. (2019) examined the agriculture credit market in the broader agriculture industry. in turkey, the investigation was conducted. a sample of data from 2004 to 2014 was collected. the collected data was analyzed using a spatial panel model. the analysis indicated that a one percent increase in agricultural credits in a particular province result in an average gain of 0.17 percent in agricultural value added per hectare, composed of 0.05 percent from the direct influence and 0.12 percent from the spillover effect. in contrast to agricultural credits, a 1% increase in a province's government support results in a mixed bag of direct and indirect effects, resulting in a 0.13% decrease in agricultural value-added per hectare in turkey. in addition, bahşi et al. (2020) examined if farm credit affects the agricultural output. the research was conducted in turkey. from 1198 through 2016, a sample of 18 years was obtained. the collected sample was evaluated using the ols method. according to the analysis findings, the effects of term and agricultural credits are significant. this disparity may be due to the reliance on credit on macroeconomic data and the country's political system. in addition, the analysis revealed that a national agricultural credit structure is required to provide farmers with more financial alternatives for technology and modernization expenditures. achieving financial stability is the ultimate objective of every government on the planet. it is ultimately the responsibility of the government to oversee and manage the country's affairs in a manner that promotes financial stability. agriculture-dependent nations must give particular attention to the agriculture industry. one of the most effective methods to facilitate a sector is to create policies that directly and indirectly support that sector. government policies are regarded as crucial to the success or failure of any industry in the nation (djatmika, 2021; qiao et al., 2019). in this context, hemming et al. (2018) conducted a literature study to determine whether government policies on subsidies affect the income and productivity of farmers. the inquiry summarized the 16 studies as a whole. the main finding of the research was that government support in the form of subsidies had a major positive effect on farmers' income. in addition, the subsidies assist farmers in lowering their production costs. consequently, their income will increase. subsidizing a country's sector is the most prevalent method of aiding that country's economy. in this context, alizamir et al. (2019) analyzed the role of government subsidies in farm sector assistance. the analysis was conducted in the united states. the investigation revealed that: 1) the usa agriculture subsidy program always encourages farmers to plant more acres compared to the no-subsidy case; however, farmers may plant fewer acres under arc, resulting in a lower crop supply; 2) contrary to popular belief; which holds that arc generally outperforms the usa agriculture subsidy program for a wide range of parameter values, we demonstrate that farmers and consumers may be better off under the usa agriculture subsidy program; and 3) contrary to popular belief, which holds the outcomes of the inquiry provide recommendations to farmers for adding crops in subsidy programs and illustrate that enrollment statistics for farmers supports these recommendations. in addition, latruffe et al. (2017) examined whether subsidies and technical efficiency have a role in bolstering the agriculture sector. the probe took place in the european union. the study used a sample spanning seventeen years, from 1990 to 2007. the collected material was analyzed using a variety of analysis techniques. the analysis indicated that their government subsidies significantly impacted the agricultural sector's output. similarly, latruffe et al. (2016) analyzed the effect of government policies on agriculture productivity as a secondary effect. the research was conducted in france. the investigation included a sample of sixteen years, from 1990 to 2006. the analysis indicated that government subsidies had a major impact on agricultural output in france. each nation's economy is comprised of a variety of components. every aspect of the economy has its special significance. agriculture is one of the highest-rated industries on a global scale. on the one hand, this sector supports the economy through exports, while on the other, it provides the country's essential needs, such as food. consequently, governments pay special attention to the development of this industry. the improvement of this industry has a good effect on the farmers' financial support. thus, the progress of the agriculture sector is a strong indication of the economic improvement of farmers (balkrishna et al., 2022; sen et al., 2017). the government supports the agriculture sector in various ways, including through loans and subsidies. vogel (2021) explored if the agriculture loan had a major impact on the income distribution of farmers. in costa rica, the investigation was carried out. the results demonstrated a substantial correlation between the agriculture loan and the income distribution of costa rican farmers. providing farmers with an agriculture loan assists them financially and encourages them to enhance their output capacity. in this context, chandio et al. (2019) studied if an association exists between agricultural loans and the size of farmers' farms. the investigation took place in pakistan. a sample of 180 farmers was collected and used. mle was utilized to examine the obtained material. according to the investigation's findings, considerable correlations exist between loans, farm size, fertilizer, labor, and rice yield. smallholder farmers in sindh, pakistan, are increasing their technical efficiency and rice production due to agricultural credit and farm size. in addition, sekyi et al. agbioforum, 24(2), 2022 | 50 sibuea, sibuea, pratama, siregar and putra. — analysis of the contribution of agribusiness microfinance institutions and government… (2017) investigated whether farmers' access to agriculture loans and restraints influences their production. the investigation took place in ghana. the study utilized a sample of 2,968 farmers. the collected material was tested with the cmp. according to the calculations, age, nonmechanized agricultural equipment, and group membership were the factors affecting farmers' access to financing. conditions of credit constraint were influenced by household size, geography, group participation, and durable household assets. the primary objective of any nation is to improve its citizens' standard of living. the standard of living includes increased employment opportunities, business opportunities, and company efficiency. all of these elements depend on the economic stability of the nation. if the country's economy is rising, this will result in the country's prosperity. a nation's economic growth directly impacts all elements that are directly or indirectly related to the economy (khan et al., 2020). the agriculture industry is directly related to the economy, and farmers constitute the agriculture sector's backbone (humphries et al., 2019; kan et al., 2019). increasing their income solves the problems plaguing farmers, rural areas, and peasants. it is inextricably linked to the general state of social stability and national economic growth, as well as the interests of farmers and rural development. due to this, it is still essential to concentrate on and research how to address the issue of farmers' income development fundamentally. in this context, q. chen (2019) explored the relationship between the income of farmers and the country's economic growth. in fuji, the investigation was conducted. the study employed a sample spanning 31 years, from 1978 to 2009. the analysis indicated that economic expansion positively affected farmers' income, notably in fuji. similarly, sertoglu et al. (2017) studied whether agricultural farmers contribute to economic growth. the investigation took place in nigeria. a sample spanning 35 years was collected. the sample spans the years 1981 through 2013. the collected material was examined with the assistance of vecm. according to the findings of the investigation, there is a correlation between economic growth and agriculture. the improvement in the agriculture sector has a good effect on the economy, supporting farmers through subsidies and loans. the institutions play a crucial role in improving the performance of the associated sector. the government devotes considerable attention to the growth of institutions. institutional development contributes to the financial and employment well-being of those associated with a given industry (duramany-lakkoh, 2021). additionally, the institution contributes to the economy through taxation on profitability. typically, microfinance organizations have a direct impact on the middle class. thus, microfinance institutions play a crucial role in sustaining the income of farmers in developing countries, where they belong to a middle-class society (alemayehu, 2020; murad et al., 2017). in this context, marina et al. (2020) examined whether microfinance agriculture-related organizations impacted farmers' farming practices. the research was conducted in chilli. the experiment utilized 71 response data samples. the analysis found that microfinance agriculture institutions considerably affected farmers' agricultural improvement. savings are the ultimate goal of every person on the globe to ensure future generations' prosperity. saving is only possible with a sufficient income. in this regard, mulatu (2020) also examined the role of microfinance institutions as a factor in farmers' savings. the investigation took place in ethiopia. 200 houses served as the data sample for the inquiry. the study's results demonstrated that education level and perception of interest rates have a substantial impact on household savings. the district's microfinance service delivery was hindered by various hurdles, such as poor loan recovery performance, low savings mobilization, a lack of office space, service knowledge, and engagement with other government sectors. 3. research methods this article examines the effect of agricultural credits, the profitability of agribusiness microfinance companies, government subsidies, government agricultural loans, and economic growth on the income of indonesian farmers. from 1991 to 2020, secondary sources such as central bank databases and wdi were employed to collect secondary data for the study. this article has produced the following equation with understudy constructs: 𝐹𝐼𝑡 = 𝛼0 + 𝛽1𝐴𝐶𝑡 + 𝛽2𝐴𝑀𝐹𝐼𝑃𝑡 + 𝛽3𝐺𝑆𝑡 + 𝛽4𝐺𝐴𝐿𝑡 + 𝛽5𝐸𝐺𝑡 + 𝑒𝑡 (1) where; fi = farmers' income t = period ac = agricultural credits amfip = agribusiness microfinance institutions profitability gs = government subsidies gal = governmental agricultural loans eg = economic growth the article utilized framers' income to measure agriculture, forestry, and fishing's value added (% of gdp). in addition, the study employed four independent variables, including agricultural credits measured with credit to the agricultural sector to total credit, agribusiness microfinance institutions' profitability measured with return on equity, government subsidies estimated with subsidies to the agriculture sector (percent of expenses), and government agricultural loans calculated with the loan to the agricultural industry to total loan. lastly, the article used economic growth, defined by annual gdp growth percentage, as the control variable. the sources and measurements for these variables are listed in table 1. agbioforum, 24(2), 2022 | 51 sibuea, sibuea, pratama, siregar and putra. — analysis of the contribution of agribusiness microfinance institutions and government… table 1: variables with measurements s# variables measurement sources 01 farmers' income agriculture, forestry, and fishing, value added (% of gdp) wdi 02 agricultural credits credit to the agricultural sector to total credit central bank 03 agribusiness microfinance institutions profitability return on equity central bank 04 government subsidies subsidies to the agriculture sector (% of expenses) wdi 05 governmental agricultural loans loan to the agricultural sector to total loan wdi 06 economic growth gdp growth annual percentage wdi using descriptive statistics, the study describes the factors in depth. using a correlation matrix, the study also illustrates the correlation between the variables. in addition, the unit root is examined using the augmented dickey-fuller (adf) test. below is the equation for the unit root test: 𝑑(𝑌𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑌𝑡−1 + 𝑑(𝑌𝑡(−1)) + ɛ𝑡 (2) the adf test for unit root can examine the unit root separately for each variable. hence, the separate equation is given below: farmers' income 𝑑(𝐹𝐼𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐹𝐼𝑡−1 + 𝑑(𝐹𝐼𝑡(−1)) + ɛ𝑡 (3) agricultural credits 𝑑(𝐴𝐶𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐴𝐶𝑡−1 + 𝑑(𝐴𝐶𝑡(−1)) + ɛ𝑡 (4) agribusiness microfinance institutions profitability 𝑑(𝐴𝑀𝐹𝐼𝑃𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐴𝑀𝐹𝐼𝑃𝑡−1 + 𝑑(𝐴𝑀𝐹𝐼𝑃𝑡(−1)) + ɛ𝑡 (5) government subsidies 𝑑(𝐺𝑆𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐺𝑆𝑡−1 + 𝑑(𝐺𝑆𝑡(−1)) + ɛ𝑡 (6) governmental agricultural loans 𝑑𝐺𝐴𝐿𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐺𝐴𝐿𝑡−1 + 𝑑(𝐺𝐴𝐿(−1)) + ɛ𝑡 (7) economic growth 𝑑(𝐸𝐺𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐸𝐺𝑡−1 + 𝑑(𝐸𝐺𝑡(−1)) + ɛ𝑡 (8) the co-integration of the model has also been examined using the co-integration examination test. the study also utilized the ardl model to investigate the relationship between the variables. the ardl model is useful for time series data and variables with no unit root at i(0) and i(1) (mensah et al., 2019). additionally, the ardl model controls the influence of autocorrelation and heteroscedasticity. the ardl equation is as follows: ∆𝐹𝐼𝑡 = 𝛼0 + ∑𝛿1∆𝐹𝐼𝑡−1 + ∑𝛿2∆𝐴𝐶𝑡−1 + ∑𝛿3∆𝐴𝑀𝐹𝐼𝑃𝑡−1 + ∑𝛿4∆𝐺𝑆𝑡−1 + ∑𝛿5∆𝐺𝐴𝐿𝑡−1 + ∑𝛿6∆𝐸𝐺𝑡−1 + 𝜑1𝐹𝐼𝑡−1 + 𝜑2𝐴𝐶𝑡−1 + 𝜑3𝐴𝑀𝐹𝐼𝑃𝑡−1 + 𝜑4𝐺𝑆𝑡−1 + 𝜑5𝐺𝐴𝐿𝑡−1 + 𝜑6𝐸𝐺𝑡−1 + ɛ1 (9) 4. research findings using descriptive statistics, the study describes the factors in depth. the findings revealed that the average value for fi was 22.092 percent, the average value for ac was 0.342 percent, and the average value for amfip was 48.008 percent. the research also revealed that the average value for gs was 44.982 percent, while the average value for gal was 0.543 percent and the average value for eg was 4.567 percent. table 2 emphasizes these numbers. table 2: descriptive statistics variable obs mean std. dev. min max fi 30 22.092 1.908 14.098 27.227 ac 30 0.342 0.987 0.319 0.402 amfip 30 48.008 2.976 41.092 55.999 gs 30 44.982 2.027 32.075 52.955 gal 30 0.543 0.272 0.429 0.612 eg 30 4.567 0.762 3.892 7.927 using a correlation matrix, the study also illustrates the correlation between the variables. in indonesia, agricultural credits, the profitability of agribusiness microfinance institutions, government subsidies, government agricultural loans, and economic growth were found to have a strong and positive relationship with farmers' income. this is highlighted in table 3. table 3: matrix of correlations variables fi ac amfip gs gal eg fi 1.000 ac 0.774 1.000 amfip 0.620 0.664 1.000 gs 0.521 0.629 0.529 1.000 gal 0.487 0.661 0.538 0.777 1.000 eg 0.488 0.721 0.377 0.511 0.653 1.000 in addition, the unit root is examined using the adf test. the tests revealed that the ac and gal are level and steady. in contrast, fi, amfip, gs, and eg are stationary at first difference. this is highlighted in table 4. the co-integration of the model has also been examined using the co-integration examination test. the results demonstrated that the computed f-statistics (5,553) exceed the critical values. the results suggested that co-integration exists. this is highlighted in table 5. agbioforum, 24(2), 2022 | 52 sibuea, sibuea, pratama, siregar and putra. — analysis of the contribution of agribusiness microfinance institutions and government… table 4: unit root test table 5: ardl bound test model f-statistics lag level of significance bound test critical values i (0) i (1) fi/ (ac, amfip, gs, gal, eg) 5.553 4 1% 6.672 6.920 5% 5.091 5.534 10% 4.729 4.928 the article examines the effect of agricultural credits given by microfinance organizations, the profitability of agribusiness microfinance institutions, government subsidies, government agricultural loans, and economic growth on the income of indonesian farmers. the study also utilized the ardl model to examine the short-run relationship between the variables. in the short term, agricultural credits, the profitability of agribusiness microfinance institutions, government subsidies, government agricultural loans, and economic growth were found to have a strong and positive relationship with farmers' income in indonesia. this is highlighted in table 6. table 6: short-run coefficients variable coefficient std. error t-statistic prob. d(ac) 2.733 0.673 4.061 0.002 d(amfip) 1.027 0.290 3.541 0.011 d(gs) 3.905 1.291 3.025 0.024 d(gal) 2.892 0.673 4.297 0.001 d(eg) 1.827 0.533 3.428 0.009 cointeq(-1)* -1.892 0.374 -5.059 0.000 r-squared 0.673 mean dependent var -0.034 adjusted r-squared 0.612 sd dependent var 2.252 the study also utilized the ardl model to examine the long-term relationship between the variables. the results suggested that agricultural credits, the profitability of agribusiness microfinance institutions, government subsidies, government agricultural loans, and economic growth have a significant and favorable long-term relationship with farmers' income in indonesia. this is highlighted in table 7. table 7: long-term coefficients variable coefficient std. error t-statistic prob. ac 2.938 0.539 5.451 0.000 amfip 1.784 0.463 3.853 0.011 gs 4.671 1.823 2.562 0.043 gal 2.883 0.476 6.057 0.000 eg 2.763 1.033 2.674 0.039 c 1.892 0.432 4.379 0.002 5. discussions the article examines the effect of agricultural credits given by microfinance organizations, the profitability of agribusiness microfinance institutions, government subsidies, government agricultural loans, and economic growth on the income of indonesian farmers. agriculture credit was found to have a favorable correlation with farmer income. these results are consistent with a previous study conducted by abdallah (2018), which demonstrates that a number of financial institutions provide credit specifically to individuals or companies engaged in agricultural industries. these loans allow them to make additional agricultural investments to increase their efficiency and yield. consequently, total revenues rise, ensuring an increase in farmers' income. these findings are also corroborated by the research of akhtar et al. (2019), which indicates that the growth in the issuance of credit by financial institutions to enterprises engaged in the agriculture business enhances their financial capacity and enables them to broaden their agricultural scope. this thus increases the company's ability to pay farmers more. these outcomes are consistent with ullah et al. (2020)'s research. according to this previous study, boosting agricultural credits can increase farmers' revenue by raising the quality of their output. the results indicated that the profitability of agribusiness augmented dickey-fuller test (adf) level t-statistics p-values fi i(1) -5.720 0.000 ac i(0) -2.712 0.031 amfip i(1) -4.984 0.001 gs i(1) -6.772 0.000 gal i(0) -2.029 0.039 eg i(1) -5.188 0.000 agbioforum, 24(2), 2022 | 53 sibuea, sibuea, pratama, siregar and putra. — analysis of the contribution of agribusiness microfinance institutions and government… microfinancing institutions (ami) is positively correlated with farmers' income. these findings are consistent with hossain et al. (2019). the study asserts that certain amis provide short-term loans to various individuals and enterprises, particularly agricultural businesses. if ami profitability improves, enterprises will have more resources to give microfinance to agribusiness, and the resulting agricultural expansion will allow farmers to earn more money. these outcomes are also corroborated by oluwamayokun et al. (2021)'s study. this study hypothesizes that the profitability of amis dictates their ability to provide loans or credits. agribusinesses with access to loans and credit can expand their operations and pay their employees more. following the findings of ogundeji et al. (2018), if the profitability of amis increases the funding allocated to agriculture and encourages agriculture enterprises to pay farmers a higher wage, the results presented here are consistent. the results revealed a correlation between government subsidies and the income of farmers. these findings concur with a previous study by amfo et al. (2020) that provides light on government subsidies to the agriculture business. when the government offers various monetary incentives to agribusinesses and agricultural organizations to maintain their supply, farms can earn more from the sale of agricultural commodities, according to a prior study. these findings are further corroborated by the research of yanuarti et al. (2019), which demonstrates that when the government agrees to provide agricultural enterprises with subsidies, the firms maintain their productivity and marketing efforts and can generate larger revenues. thus, the enterprises can enhance the revenue levels of farmers. these results are also consistent with hemming et al. (2018)'s research. farmers' incomes improve due to the expansion of agricultural firms that can receive greater government subsidies. the findings revealed a correlation between government agricultural loans and farmer income. these findings are reinforced by the research of kuye et al. (2019), which asserts that the likelihood of a rise in farmers' incomes increases if the government formulates its policies to provide loans to small agricultural enterprises. these findings are consistent with a previous study by soullier et al. (2018), which found that in countries where the government provides agricultural loans to businesses on lenient terms regarding interest, collateral, and loan repayment, agricultural businesses can benefit from government loans and earn more. therefore, agricultural corporations can generate greater profits for farmers. these findings are consistent with onyiriuba et al. (2020), who found that an increase in government agricultural loans ultimately leads to a rise in farmer earnings. the results demonstrated a positive relationship between economic growth and farmers' income. these findings are consistent with a previous study by maja et al. (2021), which indicates that when a country's economic growth rate increases, there is an increase in the usage of information and communication technologies. this improves the knowledge and abilities of farmers, allowing them to execute agricultural operations more effectively and make more money. consequently, farm revenues are more likely to rise. these conclusions are corroborated by rahman et al. (2020)'s study, which indicates that a country with a greater economic growth rate has an effective agricultural system. within this agricultural system, farmers can earn more revenue. these outcomes concur with the findings of akbari et al. (2020). this previous study demonstrates that economic growth contributes significantly to agricultural growth and, thus, enhances farmer earnings. 6. theoretical implications due to its contributions to the body of knowledge, the current study may provide researchers with guidelines. the emphasis of the study is the effects of agricultural credits, ami profitability, government subsidies, government agricultural loans, and economic growth on farmers' income. previous studies have analyzed the role of agricultural credits, ami profitability, government subsidies, governmental agricultural loans, and economic development in determining farmers' income. still, there is no comprehensive simultaneous study on the relationship between these factors and farmers' income. the current research distinguishes itself in the literature by concurrently evaluating the correlations between these parameters. similarly, most available research focuses solely on the effect of government policy on farmers' income levels. in contrast, the current study, which examines government agricultural loans and economic growth as two government policies affecting farmers' income, contributes to the body of knowledge. in addition, this is the first study to analyze agricultural credits, ami profitability, government subsidies, government agricultural loans, and economic growth to evaluate farmers' income within the indonesian economy. 7. empirical implications this literary work is incredibly important for emerging economies like indonesia. this document guides economists and the government on how to grow the agricultural sector and improve the welfare of farmers. the report recommends that a policy be enacted to encourage financial institutions to give special agriculture credits by implementing simple procedures and favorable interest rates to increase farmers' income levels. it is recommended that authorities attempt to increase the profitability of ami to expand agriculture and increase farmers' income. the study presents a guideline that the government must assess the need for agriculture in the country and devise a strategy to provide various subsidies to agribusinesses to flourish and increase farmers' income levels. similarly, the government must use various financial instruments to expand agricultural loans directly or via financial institutions to increase farmers' income. using agbioforum, 24(2), 2022 | 54 sibuea, sibuea, pratama, siregar and putra. — analysis of the contribution of agribusiness microfinance institutions and government… government and micro-financial institutions to enhance farmers' incomes, the study aids policymakers in formulating relevant policies. the study also indicates that politicians must work to boost the rate of economic growth to increase farmers' income. 8. conclusion the study aims to determine the effectiveness of agricultural credits, ami profitability, government subsidies, and government loans in boosting farmers' income. it also investigates the impact of economic growth on the income of farmers. according to empirical evidence from the indonesian economy, farmers' income is positively correlated with agricultural credits, ami profitability, government subsidies, government agricultural loans, and economic growth. the results suggested that the expansion in agribusiness and the acceleration of profitability boost farmers' income in countries where financial institutions grant special credits for encouraging agriculture. when institutions have the policy to give financing to agribusiness, the results also reveal that farmers could utilize new sources and technologies for various agricultural operations. consequently, the expansion of agriculture increases farmers' incomes. in addition, the results suggested that government subsidies make it easier for farmers to use innovative agricultural technologies and practices. therefore, increased production increases the income share of farmers. in addition, when the government recognizes the importance of agriculture and establishes special rules for arranging agricultural loans, the number of people working on farms to cultivate food and noncrops, plants, and greenery increases, and yields are of higher quality. therefore, the growth in agricultural revenues increases the income of farmers. the study also revealed that as a nation's economic growth increases, the agricultural sector expands and generates greater money for farmers. 9. limitations there are certain limits to the study's implications. with some revisions, the authors can provide a superior research paper. in this study, only a few variables, including agricultural credits, ami profitability, government subsidies, government loans, and economic growth, were considered to determine farmers' income levels. farmers' revenues can also be changed by technical innovation, business size, and the farmers' job productivity. fewer explanatory elements of farmers' income limit the research's comprehensiveness and may doubt the conclusions' dependability. the authors evaluated the role of agricultural credits, ami profitability, government subsidies, government agricultural loans, and economic growth on farmers' income levels in indonesia. they gathered data from a restricted period. the conclusions of a study undertaken in a single country may not apply to all countries, and if they are based on data from a specified period, they may lack validity. for broader and more conclusive results, authors must analyze the relationship between agricultural credits, ami profitability, government subsidies, government agricultural loans, economic growth, and farmers' income in many nations over a longer period. references abdallah, a.-h. 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in malaysia rida shibli al-ahliyya amman university, hourani center for applied scientific research email: r.shibli@ammanu.edu.jo sobhia saifan al-ahliyya amman university, hourani center for applied scientific research email: s.saifan@ammanu.edu.jo mohd shukri ab yajid management and science university email: shukri@msu.edu.my https://orcid.org/0000-0001-5688-4392 ali khatibi management and science university email: alik@msu.edu.my https://orcid.org/0000-0002-2531-7720 s.m. ferdous azam management and science university email: drferdous@msu.edu.my https://orcid.org/0000-0002-0001-3595 commercialization has played a significant role in the agriculture industry of malaysia as increased literacy of the farmers and the access to developmental services in their fields aid in the production of the crops that are rich in nutrients and provide better standards of living. moreover, the increasing demand and incorporation of technology in the farming practices has necessitated that farmer gain access to technical and educational services to improve their propensity. literacy and commercialization play a vital role in the dissemination of information and lead to adoption of extension services. extension services assist the farmers through educational processes and work through the improvement in the farming procedures and practices. adoption of extension services lead to improved farm outputs like increased efficiency and income and thus the factors influencing the adoption of extension services needs to be addressed. thus, the main objective of the study was to evaluate the role played by commercialization and farm literacy in the adoption of extension services. the study was based on a quantitative methodology and survey technique was used. a convenient sample of 316 farmers was collected from malaysia. the method of structural equation modelling was used for estimation of variable estimation. the technique of confirmatory factor analysis was used for estimation of model validity. the results indicate that the commercialization and farm literacy significantly influence the adoption of extension services. also, social influence and information quality were found to mediate the associations positively as well. keywords: social influence, commercialization, educational services, technical services, extension services. 1. introduction commercialization is a practice that brings novel items into the market as per the innovative technology and advanced techniques used in producing goods. in various situations, it has been reported that commercialization has played a significant role in the agriculture industry of malaysia because of the increased educational services provided to the farmers about enhancing the quality of crops in their fields and producing the crops that are rich in nutrients and provide better standards of living to them as well as the demand of consumers is also fulfilled. in addition, the farmers can also increase their income with such practices. a higher level of literacy in farmers can have countless benefits in the context of malaysia. the country has increased weather impacts, and due to change in climate and the soil fertility is affected in such a way so the farmers can be advised through various programs to utilize some new techniques and to maintain their income level. the knowledge provided to framers can also help increase the commercialization in the agriculture department of malaysia as the new products would be introduced in the market, and farmers can play a major role in getting rewards by bringing some innovations (chetthamrongchaia, foosirib, & jermsittiparsertc, 2019). the traditional methods of farming have been considered low standards. customers are also not satisfied with the products of agriculture that are grown through the traditional methods as such grains and crops are considered lacking in natural nutrients. the land is also not efficient enough for the next time to produce similar crops and taste as before. in such circumstances, farmers are advised to utilize new standards and increase the production of agricultural products. they are provided with agriculture extension services and guided with the help of different seminars to attain help for the future (rosmiza, cr, mazdi, & jabil, 2014). the farmer literacy is considered a major concern in agriculture department as the knowledge of commercialization can play a significant role in crop productivity and the business of agriculture sector can be enhanced with effective knowledge and interest of farmers in crop yield. the problem statement for this respective study is to establish the relationship between farmer extension services and the use of innovative procedures in agriculture department of malaysia. the delivery of efficient crops to the consumers with professional extension services provided to farmers has a considerable positive impact at global level as the commercialization is being adopted by a lot of farmers in various other countries (sheng tey, brindal, li, gill et al., 2018). the need of this study is to improve the farmer’s literacy rate in agriculture department and to encourage them for utilization of commercialization in their farming practices to attain better income with financial stability in their lifestyle. the study fills up the gaps in educative parameters and campaigns organized in malaysia to enhance agriculture extension services. farmers can get enough knowledge to introduce new products in market with efficient productivity for grabbing the attraction of mailto:r.shibli@ammanu.edu.jo mailto:s.saifan@ammanu.edu.jo mailto:shukri@msu.edu.my https://orcid.org/0000-0001-5688-4392 mailto:alik@msu.edu.my https://orcid.org/0000-0002-2531-7720 mailto:drferdous@msu.edu.my https://orcid.org/0000-0002-0001-3595 agbioforum, 23(2), 2021 | 83 shibli, saifan, yajid, khatibi and azam. — commercialization and farmer literacy's role on agriculture extension services in malaysia consumers to provide economic stability to agriculture as well as economic stability to government of malaysia. assorted studies have revealed that farming information as per knowledge to provide effective education to farmers was not considered at a high note in past. the consequences and the need of agriculture extension services were not known in the past as the literacy rate of farmers was quite low in ancient times. the estimates have shown that due to such low-level literacy rate of farmers about 45% of cultivated areas in the country were not fertilized and various crop fields were wasted due to lack of knowledge in farmers to increase the productivity. in accordance with all these aspects, the current study is initiated to fulfill the gaps of previous study and to establish the significance of agriculture extension services with reference to commercialization of crops. the current research also provides awareness to farmers to enlighten the new techniques that could be utilized for introducing high quality crops in market. as per the information provided in justification rationale of the current study, the objectives can be proposed as well. the farmer input information must be increased in malaysia to support farmers in large scale farming practices and to develop the agriculture sector with the help of commercialization (utami, indrianto, & pratama, 2019). specific objectives for the current study are: • to explore the perception of farmers towards agriculture extension services • to enhance the commercialization at a global level to gather consumer attention • to propose different educative programs in malaysia for providing enough information to farmers regarding commercialization according to recent studies, it has been reported that about 77% of farmers of malaysia have been literate with better quality knowledge and education. in different agriculture departments of malaysia, farmers need to provide guidance to tackle the different agriculture perspectives. the scope of current study is to highlight the need of farming techniques to encourage commercialization and increase the farmer literacy rate in the country for better outcomes. the study fills up gaps in lack of information and awareness in farmers to promote their small scale business to a large scale (adnan, nordin, & bin abu bakar, 2017). main significance of current study is based on increased agriculture productivity if the commercialization would be promoted in the respective department of malaysia. some factors of influence in agriculture with respect to farmer literacy rate can be boosted with effective reasoning. the trade practices will be increased and the economic as well as financial stability would be encouraged in malaysia. farmers would be able to earn better farm level income and improve their lifestyle with progressive business in agriculture. cultivation mechanisms will be developed, and crops would be enriched with a considerable impact on economic growth. the current study is organized in a sequence of providing information in the form of literature review followed by methodology utilized by researchers to conduct study under the selected topic. the next part is based on results and findings that researchers have gathered during the study. in the end discussion and conclusion are stated to further explain the topic in detail. 2. literature review 2.1. theory of social influence the theory is proposed by social scientist kelman, who states that the individual’s attitudes, beliefs, and actions are influenced referred to the internalization, identification, and compliance. kelman adds that social influence shape the behavior of the people. compliance occurs when people accept the influence that comes socially and adopt according to that influence which is induced with the intentions of gain and rewards, and to avoid the disapproval or punishment. satisfaction is usually achieved because of the social influence in compliance. identification happens when social influence molds the behavior to maintain relation with some specific social group or another person. internalization occurs when the social influence effects the actions and attitude once people have perceived the influencing behavior is rewarding (friedkin, 1998). the social influence is said to be unintentional and even intentional at times that affects the attitude and actions of the people. social influence occurs via peripheral processing, therefore the person or the group under the social influence is usually unaware of the fact that their actions and behavior is being socially influenced (friedkin, 1998; rashotte, 2007). the idea of social influence is pivotal while studying and understanding social psychology and inter-group processing and intergroup relations. it is a widespread practice among the human beings in the daily life, and a fundamental pert of relations within a group and across social groups. while practically observing social influence has different forms obedience, socialization, peer pressure, leadership, persuasion, minority influence and many other aspects fall in the category of social influence (fulk, 1990). social roles that are played by all members of the society come in the category of implicit expectations which also come under the social influence. however, the action of obedience falls in the category of explicit expectations. 2.2. farmer’s literacy and agriculture extension service farmer’s literacy is one of the prime factors considered towards the crop productivity. a well informed and educated farmer has a professional attitude towards the crop efficiency and believe is using the new scientific agbioforum, 23(2), 2021 | 84 shibli, saifan, yajid, khatibi and azam. — commercialization and farmer literacy's role on agriculture extension services in malaysia techniques to enhance the crop yield. however, the farmers with little or no education regarding their profession believe in the old conventional methods of farming. studies have shown the regions of world with high rate of farmer literacy are accelerating in the crop production and crop affectivity. farmers with enough information regarding the use of chemicals and ratio of use of chemicals including pesticides, insecticides, fungicides, and fertilizers can also prevent the crop from any hazard more effectively. farmer’s literacy is also important in considering the agriculture extension service that also aims to guide farmers regarding the effective farming techniques (aggarwal, gupta, & singh, 2014). farmers who already have a good command on the knowledge tend to accept the guidance and suggestions more readily by the agents of the extension service. the aim of agriculture extension service is to introduce new scientific farming techniques and findings of farming research to the farmers. therefore agriculture extension service also plays a significant role in enhancing the farmer’s literacy as it aims to educate farmers in all aspects to deal with the environmental shock, increase productivity and use new efficient technological methods to enhance the practice of farming (mashroofa & senevirathne, 2014). 2.3. mediating effect of social influence in relation between farmer’s literacy and extension service social influence is an important aspect of the daily life of all human beings. either knowing or being unaware all human beings are under social influence. farmer’s behavior is also greatly shaped by different social groups that influence them. one of the most crucial factors is the inter group influence. farmer’s behavior is significantly affected by other farmers, as studies have shown that the farmers of one region follow the same farming techniques. therefore, the role of agriculture extension is also mediated by the social influence. it is considered as a task of considerable magnitude for the agents of agriculture extension to convince the farmers with little or no education regarding farming towards the new scientific findings and technological farming techniques (david & samuel, 2014). as the entire group of the farmers is under the social influence of each other. however it has also been studied that a few members of group if have knowledge and believe in the guidance of the agriculture extension service the other farmers under the social influence to also achieve the reward of greater productivity are easily convinced towards the new farming practices (alam, hoque, khalifa, siraj et al., 2009; duinen, filatova, geurts, & veen, 2015). therefore, social influence plays a mediating role in relation between farmer’s literacy and agriculture extension service. 2.4. mediating role of information quality in relation between farmer’s literacy and agriculture extension service the aim of agriculture extension service is to guide the farmers regarding new farming methodology, new machines, and other scientific methods to improve the farming. information quality in this regard plays a mediating role (gudalov & treshchenkov, 2020). as the perception of the information and knowledge received by the farmers also effects the behavior of the farmers towards extension services. the quality of information conveyed to the farmers by the agents of the agriculture extension service is especially important. information and communication technology has also eased this task for the agents of the agriculture extension to provide enough guidance and help to the farmers at any time they need (gelb & bonati, 1998). moreover, the quality of information provided to the farmers is also a crucial factor in shaping the literacy of the farmers that in turn shapes the perception of the farmers towards the information provided. it is mandatory to provide the quality information to the farmers to enhance the farmer’s literacy which has a positive influence and perception of the farmers towards agriculture extension service that affect the crop productivity and crop efficiency. 2.5. commercialization and agriculture extension service many farmers who have small areas for farming, grow plants and herbs but do not sell them to markets or consider them for commercialization. they grow them to meet the needs of their families and do not even have the idea regarding the worth of plants they are growing (ab yajid, 2020). however, the effort of agents of agriculture extension service can help them assist regarding the worth of their crops and plants which can be beneficial for the farmers as well as the state as it will contribute to give the economic boost. commercialization of crops will enhance the positive behavior of the farmers towards agriculture extension services (mahaliyanaarachchi & bandara, 2006). they will be motivated to consider the suggestions of the agents and also introduce the use of new techniques in the farming practices (gebremedhin, hoekstra, & tegegne, 2006). by bringing the farming products in the market and applying the new farming techniques along with suggestion of the agents will result in the prosperity of the farming efficiency leading to enhanced productivity. 2.6. mediating role of social influence in relation between commercialization and agriculture extension service it is the very part of human nature that humans are under profound influence of other humans that can be from the same social group or from other groups. however, they undergo the social influence looking for some reward or bonus. so is the case of farmers, they are under profound influence of each other and follow what they see other doing. commercialization of the crops or plants grown by the farmers is influenced by the behavior in their social group. however observing another group of farmers participating in the commercialization of their crops and gaining some reward can greatly influence the farmers towards the idea of commercialization (binswanger & braun, 1991). therefore, in relation where the agents of agriculture service extension work enough to educate the farmers regarding the benefits of commercialization social influence is of immense importance. social influence can lead to both positive and negative outcomes (petrzelka, agbioforum, 23(2), 2021 | 85 shibli, saifan, yajid, khatibi and azam. — commercialization and farmer literacy's role on agriculture extension services in malaysia korsching, & malia, 1996). however, in relation between commercialization and agriculture extension service social influence plays a mediating role in shaping the behavior and attitude of the farmers towards new farming practices. 2.7. mediating role of information quality in relation between commercialization and agriculture extension service in the 21st century where information and communication have overpowered all walks of human life and have made it far easier. communicating information across the globe has become a matter second. application of information and communication technology in the field of agriculture can help achieve farmer’s goals of productivity. educating farmers regarding the benefits of commercializing their crops and conveying quality information towards farmers can help gain their trust towards the agriculture service extension. guiding farmers regarding the ongoing tends in the market regarding prices can help them take a better and bold decision regarding commercialization. this can be achieved by communicating the right information with farmers and also the benefits of commercialization (kennedy & cogill, 1988). because communicating the right information with farmers can accelerate the approximation of their perception regarding commercialization and can also boost their trust in the agents of agriculture extension (alemu & negash, 2015). therefore, communication of right information can enhance the productive farming as it enhances the trend the agriculture service extension in the farmers. the following hypothesis can be generated for this study: h1: farmer’s literacy effects the agriculture extension service. h2: social influence plays a mediating role in relation between farmer’s literacy and agriculture extension service. h3: information quality plays a mediating role in relation between farmer’s literacy and agriculture extension service. h4: commercialization effects the agriculture extension service. h5: social influence plays a mediating role in relation between commercialization and agriculture extension service. h6: information quality plays a mediating role in relation between commercialization and agriculture extension service. 3. method this research paper used the questionnaire based survey methodology that is most commonly followed in primary data research (dubey, gunasekaran, childe, papadopoulos et al., 2019). the researcher has used confirmatory factor analysis (cfa) to evaluate the convergent and discriminant validity of the instrument in the first stage of analysis and structural equation modelling (sem) has been adopted in the second stage for analyzing the validity of the hypotheses of this research. 3.1 research design the research design in the present study is guided by the research onion presented by saunders, lewis, thornhill, and bristow (2015). the process of research in a study is based on several philosophies and underlying paradigms that can lead to a path of appropriate decision-making in accordance with the area and scope of research. the research philosophy defines the values, assumptions, and beliefs of a researcher (antwi & hamza, 2015). traditionally, four main research paradigms or philosophies exist i.e., interpretivism, positivism, pragmatism, and realism. in the present study, positivism is used to form the basis of the philosophical paradigm as it allows a researcher to objectively collect and analyze data. research approach can be found to be broadly classified as either deductive or inductive (grinchenko & shchapova, 2020). in the present study, a deductive approach will be aimed as the researcher needs to use empirical techniques of elicitation of patterns from the theories and opinions collected from the respondents (rahi, 2017). furthermore, in the current study, a crosssectional time horizon strategy is used. in a cross-sectional study, the data from the participants is collected in a single time. the longitudinal studies need more time to be conducted as they are required to be repeated across time whereas the cross-sectional research studies are based on a single time data collection and are most suitable in cases where the researcher has a limited time for data collection and analysis and does not involve time series data analysis. 3.2 population and sampling the population can be defined as the overall group of subjects from which the sample for a study is to be drawn (sekaran & bougie, 2016). the sample can be extracted efficiently only if the population is well defined. a sample is the smaller subset of the overall population from which the data is collected, and it can represent the characteristics and point of view of the overall population. the population of the current study is the farmers in malaysia. there are two types of sampling techniques: probability and nonprobability. in the present study, the researcher used nonprobability sampling method. more precisely, the purposive sampling technique is utilized in the current study. the researcher selected such farmers that are experienced in use of agricultural extension services. 3.3 pilot test and data collection with the aim of evaluating the conceptual model developed in this research and to evaluate the hypotheses, the researcher has designed a survey instrument to measure the constructs of this study. first, a pilot study was conducted based on a draft of the survey questionnaire. pilot test was conducted to ensure validity of the content of the questionnaire. in this stage, six professionals were requested to check and provide inputs regarding the validity of the questionnaire. three of these professionals belonged to academia, one was an it specialist and the rest two were agricultural industry specialists. the feedbacks from this panel helped the rephrasing of the questions, rearranging the item sequences and improvements in agbioforum, 23(2), 2021 | 86 shibli, saifan, yajid, khatibi and azam. — commercialization and farmer literacy's role on agriculture extension services in malaysia clarity and readability. the questionnaires were sent out to five hundred respondents purposively selected by the researcher. the emails were followed by reminders to make sure that the maximum response rate is achieved (singh & el-kassar, 2019). a total of 327 questionnaires were received back after the waiting period. after removing redundant, incomplete, and irrelevant responses, 314 responses were finalized to be included in the research. 3.4 measures the constructs that comprised the research model have been measured using items that have been identified through literature. the data has been calculated using a five-point likert scale that ranges from strong at 5 to weak at 1. a total of sixteen items is included in this study. • commercialization is the first independent variable in this study. it is measured using 3 items adopted by the study of abdoellah, schneider, nugraha, suparman et al. (2020). • farm literacy is the second independent variable in this study. it is measured using 3 items adopted from a number of past studies (nyasimi, kimeli, sayula, radeny et al., 2017; sanga, kalungwizi, & msuya, 2013) • information quality and social influence are used as a mediation variable and are measured using three items each. the items are extracted from several recent studies (kante, 2021; kante, chepken, & oboko, 2018; kante, oboko, & chepken, 2019). • agricultural extension services are the dependent variable in this study. items for this variable are adopted and reworded from a previous research work by muh. hatta, amri, muhammad, ma’mun et al. (2017). 3.5 non-response bias 10 non-respondents were contacted to check for the nonresponse bias issues (sheikh & mattingly, 1981) and they were inquired about the reason for opting to not participate. lack of information about the various constructs came forward as the most highlighted reason. the non-response bias was, however, considered irrelevant due to the fact that chi-square testing (mchugh, 2013) on demographics of early and late respondents showed that there was no significant difference among the two groups. 3.6 data analysis the stage of data analysis can be defined as the process of conversion of raw data into meaningful and useful information. demographic, descriptive, and other preliminary tests like fit statistics were used to ensure model fitness. furthermore, cfa and sem are used for analysis in this study. 4. results 4.1. descriptive statistics the values in table 1 are depicting the descriptive summary of the study variables. the table indicates that the final sample included 316 respondents. the descriptive summary informs of the mean response orientation, normality, and outliers present in the sample. the number of respondents against each construct is similar i.e., 316. thus, showing that there are no missing values present in the data. the average value for all constructs is between 3.4-3.9, showing that the respondents at large agreed with the statements of the questionnaire. the next facet to evaluate is the presence of outliers, which can be studied based on the minimum and maximum values against each of the variables in the table 1. the minimum and maximum values for all constructs are similar i.e., 1 and 5 and match with the endpoints of the likert scale used for response evaluation. thus, this indicates that the data is free from outliers. the last facet evaluated through the descriptive analysis is the normality of the constructs. normality is an essential characteristic and is a prerequisite of sem and therefore needs to be ensured. the normality of the data is evaluated based on the results of the skewness test. the acceptable range for the skewness test is 1to+1 and the values of all five variables remain in this threshold. thus, indicating that the given data is normally distributed and valid. the results in table 1 prove that the data is valid i.e., it is normal and free from outliers and missing values therefore eligible to go for further testing. table 1: descriptive summary n minimum maximum mean std. deviation skewness com 316 1.00 5.00 3.4905 .36696 -.741 .137 fl 316 1.00 5.00 3.8386 .44700 -.826 .137 si 316 1.00 5.00 3.5791 .47098 -.697 .137 iq 316 1.00 5.00 3.5158 .21056 -.758 .137 es 316 1.00 5.00 3.9873 .80390 -.505 .137 valid n (listwise) 316 4.2. sample adequacy the adequacy or the suitability of the data is measured through the application of the kmo and bartlett test. kmo is a statistical test that is applied to evaluate the suitability of the sample prior to subjecting to factor analysis. kmo evaluates the proportion of variance among the factors. the lower the proportion of variance in the model, the more the model will be suitable for analysis. the range of the kmo statistic falls between 01, where higher values are indicative that the factor analysis will entail suitable results. however, if the results are on the lower end of the spectrum i.e., less than or near to 0.5 it indicates that the factor analysis won’t provide with favorable results (vogt & johnson, 2011). the bartlett’s test of sphericity is applied for the comparison of the correlation matrix with the factor matrix to evaluate if an identity matrix is formulated. the results in the table 2 are depicting that kmo has a higher agbioforum, 23(2), 2021 | 87 shibli, saifan, yajid, khatibi and azam. — commercialization and farmer literacy's role on agriculture extension services in malaysia value and is close to one i.e., 0.742 and indicates that the dataset is suitable for further analysis. moreover, the bartlett test is significant as well and therefore highlights that there is no redundancy present in the dataset. thus, the factor analysis will be suitable for the present data and other statistical tests can be proceeded with. table 2: sample adequacy kmo and bartlett's test kaiser-meyer-olkin measure of sampling adequacy. .742 bartlett's test of sphericity approx. chi-square 1113.898 df 10 sig. .000 4.3. reliability analysis the reliability of the scales was evaluated through the cronbach alpha. the reliability informs of the internal consistency of the construct scales. the acceptable value for the measure is 0.7 (christmann & van aelst, 2006; connelly, 2011). the table 3 indicates of the number of items and cronbach alpha values against each construct. commercialization, farm literacy, social influence, and information quality are all evaluated based on three item scales and have cronbach alpha values if 0.891, 0.781, 0.902, 0.812 and extension services is measured through four items and has α value of 0.859. as all the values are greater than 0.7, the scales are deemed dependable. table 3: reliability analysis variable cronbach's alpha n of items com .891 3 fl .781 3 si .902 3 iq .812 3 es .859 4 4.4. component matrix the next test applied on the data is the component matrix. the table values indicate that the loadings of all items are greater than 0.5. thus, indicating that all items contributed to the overall variance of the construct. moreover, none of the items have loaded against one another i.e., cross loading, therefore all items are significant. table 4: factor loadings rotated component matrix component 1 2 3 4 5 com1 .596 com2 .740 com3 .830 fl1 .859 fl2 .842 fl3 .849 si1 .820 si2 .860 si3 .862 iq1 .837 iq2 .840 iq3 .863 es1 .895 es2 .824 es3 .853 es4 .864 4.5. convergent and discriminant validity the next step in the analysis is to study the validity of the constructs. the validity of the scales is measured through the construct validity. the construct validity is based on the convergent and discriminant validity. the convergent validity evaluates the internal consistency of the scales and is based on the values of cr and ave. the values of composite reliability for each of the variables are greater than 0.7 which is in accordance with defined measures and ave is greater than 0.5. these values are in accordance with the defined thresholds by fornell and larcker (1981). also, the discriminant validity is theoretically based on the evidence that measures of two constructs should not be highly related to one another. the table 5 indicates that the correlations of constructs with one another are low and that with one another are significantly high. thus, the discriminant validity is established as well. thus, the construct validity is established for the model. table 5: construct validity cr ave msv com fl si iq es com 0.910 0.717 0.327 0.847 fl 0.915 0.730 0.327 0.501 0.855 si 0.886 0.663 0.348 0.572 0.572 0.814 iq 0.926 0.760 0.376 0.366 0.378 0.372 0.872 es 0.920 0.794 0.376 0.531 0.472 0.590 0.613 0.891 4.6. model fit indices the fitness of the model was evaluated through the confirmatory factor analysis. once the model fitness and validity has been confirmed only then the next phase of the analysis can be performed. one of the primary rationales behind the assessment of the constructs through the cfa is to evaluate the validity of the model, of individual factors and the nested model, and the loadings of the items involved in the construct. the table 6 shows that the values were within the threshold ranges. thus, the model is deemed fit. table 6: cfa indicators threshold range current values cmin/df less or equal 3 1.009 gfi equal or greater .80 .765 cfi equal or greater .90 .866 ifi equal or greater .90 .666 rmsea less or equal .08 .082 agbioforum, 23(2), 2021 | 88 shibli, saifan, yajid, khatibi and azam. — commercialization and farmer literacy's role on agriculture extension services in malaysia 4.7. structural equation modelling for evaluation of the hypothesized relationships presented in the theoretical framework in figure 4, the method of structural equation modelling has been used. the conceptual model and fitness of the model were verified in the previous section and in this section the structural model and relationships have been evaluated through the application of sem. the direct and indirect variables and their associations are studied. the table 7 demonstrates the results of the variable relationships proposed in the second section of the paper. the direct impact of commercialization on agricultural extension services is significant and positive. the estimate of the association is 0.6, thus showing that a unit increase in commercialization will result in 0.6 units in the extension services. thus, the hypothesis is accepted. the second hypothesized direct association is between farm literacy and extension services. the results show that a unit increase in farm literacy will increase extension services by 0.34 units. the association is positive and significant, and the hypothesis is accepted. the table indicates that information quality and social influence have a direct and positive association with extension services as well. social influence and information quality were introduced as mediators between commercialization, farm literacy and extension services. the table values show that the social influence was a significant mediator for farmers. the table indicates that the presence of social influence mediated the association between commercialization and extension services positively. similarly, social influence acts as a significant and positive mediator between farm literacy and extension services. thus, showing that the transmission of social influence is influential on the commercialization of the farm and leads to the farmers seeking extension services. comparable results are generated for the mediation of information quality. the presence of information quality improves the commercialization and farm literacy, which leads to the increased adoption of the extension services by the farmers. thus, all six of the hypotheses are accepted. table 7: sem estimates estimate s.e. p status com → es .608 .061 *** significant fl→es .347 .103 *** significant iq → es .677 .109 *** significant si → es .360 .052 *** significant indirect effect com→si→es .108 .051 *** significant fl→si→es .047 .003 *** significant com→iq→es .127 .029 *** significant fl→iq→es .120 .043 *** significant 5. discussion the agricultural extension services are one of the particularly key factors for improving the agricultural sectors in various parts of the world. the core function of the agricultural extension services is to promote the adoption of agricultural technology by the rural farmers. such services improve the knowledge as well as education of the farmers thus encouraging them to implement new techniques for improving the efficacy of the farmers as well as crop productivity. many research studies have been conducted in the past to determine the impact of different variables on the extension services. for this research study, the impact of commercialization on the agricultural extension services is determined taking social influence as the mediating variable. the impact of farmer’s literacy on the agricultural extension services is also determined in this study by taking informative quality as the mediating variable. the results obtained from this research study showed that commercialization has significant impact on the agricultural extension services. however, the impact of social influence is also found to be positive on the agricultural extension services. according to achamyelh, shumeta, tesfaye, and hailemariam (2020), many rural farmers, are not well-aware of their capabilities and they grow different herbs as well as different plants but do not consider to earn profits from them. the implementation of agricultural extension services helps in providing awareness as well as knowledge for adopting different techniques to gain profits. the social influence however, play a significant role in this case (bandyopadhyay, atehnkeng, ortega-beltran, akande et al., 2019). the increased communication between the farmers and organizations helps in making our separate ways to promote a better and effective method to gain more profits. commercialization of extension services helps in improving the overall production as well as profitability of the agricultural sectors in different parts of the world especially in the rural areas of different developing countries (buehren, goldstein, molina, & vaillant, 2019). in such case, the farmer’s literacy also plays a significant role on the agricultural extension services. according to fox (2019), it has been observed that the educated farmers were more likely to adopt to the continuous changings in techniques and they implement such techniques for obtaining better and effective results whereas, the noneducated farmers still follow the old methods of crop production and do not implement the new techniques in order to increase their productivity. however, the quality of information provided in this case is found to play a significant role in this regard. it helps in improving the knowledge of the farmers and improving their methods for producing crops. according to hamamouche, kuper, amichi, lejars et al. (2018), the rural farmers are more likely to go for the new technologies when they are provided with proper information. as education is the key to success, in this case it is also proved to be right. different public as well as private organizations support different agricultural extension services to spread awareness about the significance of implementing new technologies for improving the productivity of the crops in order to gain more profit (leahy, 2018). thus, this research study supports the significant relationship between commercialization and agricultural extension services considering the significant mediating role of social influence. it also supports the significant relationship between farmer’s literacy and agricultural extension agbioforum, 23(2), 2021 | 89 shibli, saifan, yajid, khatibi and azam. — commercialization and farmer literacy's role on agriculture extension services in malaysia services considering the significant mediating role of informative quality. 6. conclusion the agricultural extension services are one of the most essential factors for improving the overall agricultural profit. the aim of agriculture extension service is to introduce new scientific farming techniques and findings of farming research to the farmers. the awareness of the farmers as well as better education, are found to have a particularly important influence in this case. the main aim of this research study was to determine the impact of commercialization as well as farmer’s literacy rate on the agricultural extension services. for this study, the mediating roles of social influence as well as informative quality were also observed. the results obtained from this research study showed that the social influence play a significant role on the extension services and the commercialization is improved by spreading the word of mouth through personal or by digital means. this increases the awareness among the rural farmers as well and encourages them to take essential steps to improve the productivity rate to gain more profit. similarly the impact of farmer’s literacy is highly impacted by the informative quality i.e. if a better information is provided to the farmers, it helps in improving the overall productivity of the farmers leading to positive outcomes (okediran, ganiyu, & badmus, 2018). however, the agricultural extension services help in improving the literacy rate for a more effective working environment for the farmers. this results in the overall profit for the farmers thus improving their incomes as well as economic growth of the country. such services are mostly encouraged in the developing countries as well. 7. limitations and future research indications almost no such study was conducted in the past that covered the impact of literacy of farmers as well as the commercialization on the extension services under one profile. this research study will help in promoting the connection between these variables as well as their impact on the agricultural extension services so that it could be elaborated very well in the future studies to be conducted. this will not only improve the literature review, but it will also help in providing different practical applications as well. even though the data for this research study was only collected from malaysia, it still showed the required results very effectively. this influences many scholars to conduct cross-sectional studies in the future leading to more positive outcomes as well. such studies should be conducted more often so that better literature review can be obtained. many various variables are found to have a substantial impact on the agricultural extension services. however, for this research study only few such variables are considered. thus, for future studies, many other variables should also be considered to determine the impact of different variables on it. this leads to positive impact on the promotion of the agricultural extension services especially in different developing as well as developed countries around the world leading to a better and effective agricultural environment. 8. implications the current study helped in determining the impact of farmers’ literacy as well as commercialization on the agricultural extension services. this encouraged different private as well as public sectors and ngos to introduce different educational systems for the farmers in the rural areas of malaysia. new regulations were formed which encouraged the farmers to gain more education and to promote the digital word of mouth for this purpose. innovative technologies have been introduced by the government in the rural areas. this helped the farmers to have a better understanding of their capability and they started to see the change in them thus working harder to gain more profits. even different policies are also developed by the government of malaysia to promote the implementation of agricultural extension services as they help in providing better system as well as service for promoting the use of new agricultural technologies. this leads to the promotion of different techniques to be used by the farmers of the rural areas to gain more profits thus having a better and healthy environment. references ab yajid, m. s. 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(2011). dictionary of statistics & methodology: a nontechnical guide for the social sciences: sage publications. retrieved from https://books.google.com/books?id=blsmlbsbjqsc https://doi.org/10.34624/jdmi.v1i1.931 https://doi.org/10.1016/j.inpa.2018.09.002 https://doi.org/10.1016/0305-750x(88)90110-6 https://doi.org/10.1016/0305-750x(88)90110-6 http://suslrepo.nsf.ac.lk/bitstream/handle/1/692/suj-6(1)-13.pdf?sequence=2 http://suslrepo.nsf.ac.lk/bitstream/handle/1/692/suj-6(1)-13.pdf?sequence=2 http://ifla-test.eprints-hosting.org/id/eprint/1003 http://ifla-test.eprints-hosting.org/id/eprint/1003 https://doi.org/10.11613/bm.2013.018 https://doi.org/10.3844/ajabssp.2017.33.38 https://doi.org/10.3390/cli5030063 http://laujet.com/index.php/laujet/article/view/295 https://doi.org/10.1080/00958964.1996.9942814 https://pdfs.semanticscholar.org/d957/e1a07a961a572ce70f7d5845cb423ac8f0be.pdf https://pdfs.semanticscholar.org/d957/e1a07a961a572ce70f7d5845cb423ac8f0be.pdf https://doi.org/10.1002/9781405165518.wbeoss154 https://www.researchgate.net/publication/305470005 https://www.researchgate.net/publication/305470005 https://www.learntechlib.org/p/111899/ http://oro.open.ac.uk/53393/ https://books.google.com.pk/books?id=ko6bcgaaqbaj https://books.google.com.pk/books?id=ko6bcgaaqbaj http://dx.doi.org/10.1136/jech.35.4.293 https://doi.org/10.1080/10496505.2017.1328310 https://doi.org/10.1016/j.jclepro.2018.12.199 http://dspace.uc.ac.id/handle/123456789/2111 https://books.google.com/books?id=blsmlbsbjqsc agbioforum, 23(2): 50-60. ©2021 agbioforum the interaction between agricultural extension services and environmental management accounting: the role of farmer value orientations rida shibli al-ahliyya amman university, hourani center for applied scientific research email:r.shibli@ammanu.edu.jo sobhia saifan al-ahliyya amman university, hourani center for applied scientific research email:s.saifan@ammanu.edu.jo mohd shukri ab yajid management and science university email:shukri@msu.edu.my https://orcid.org/0000-0001-5688-4392 shakeerah mohd shukri management and science university email:shakeerah@msu.edu.my https://orcid.org/0000-0002-1075-635x jacquline tham management and science university email: jacquline@msu.edu.my https://orcid.org/0000-0003-0966-2425 the present study aimed to examine the value orientations of farmers in malaysia and the role that these orientations play in facilitating increased environmental management accounting under the presence of efficient and effective agricultural extension services. the researcher used sem-pls technique to develop a model showing how value orientations of farmers in malaysia mediates between agricultural extension services and environmental management accounting. the research model was more validated by use of several tests like kmo, bartletts sphericity test and the cronbach alpha tests. furthermore, model fitness was also tested by use of confirmatory factor analysis and all the results were satisfactory. findings showed that there was a full mediation of various constructs of farmers value orientations in this model. the direct relationship between agricultural extension services and environmental management accounting was significant and positive and the mediation was also found to be positive. these findings imply that the farmers values in malaysia are supportive for the use of modern technologies and services that can allow them to improve the output of the agricultural sector. the understanding of the importance of studying the relationship between agricultural extension services and outcomes like increased accounting systems has been emphasized in the present study. the findings of this study along with its limitations have paved the way for future research the field of environmental management accounting in agricultural sector. the researcher has highlighted the limitations of the study so that future researchers can eradicate them in their studies. keywords: agricultural extension services, environmental management accounting, farmers value orientations, malaysia 1. introduction improving farmers' behaviors and diverting their practices from the traditional techniques to the new and advanced technology efforts with unique equipment would have a major impact on agriculture. the production of crops with the help of green practices would be praised worldwide as well. the adaption of management and cultivation procedures would have a major effect on the competencies of farmers, and their participation in such programs will indicate their focus on learning the new techniques for implementing the change according to the modern era in agriculture as well as management of sustainability of environment (nettle, morton, mcdonald, suryana et al., 2021). the farmers in the agriculture sector of malaysia have been participating in different learning programs such as the orientations and seminars in which the farmers are provided with the techniques and tools that are effective in agriculture practices. the goals to enhance the new skills in farmers' behaviors have been produced to increase their livelihoods and the progress of agriculture departments. the farmers must be provided with useful techniques about sustainable practices that have a major impact on the future generation and the restoration of natural resources. the orientation of farmers can be done with the help of different options such as they can be rewarded to participate in the educational seminars, meetings, and awareness through digital media for the agriculture extension services (frost, 2000). the agriculture extension services in malaysia have been utilized at a higher standard to increase the knowledge of farmers to promote sustainable practices in the country so that the economic and the financial sector of the country can be stabilized in such a way as the trading of green crops will increase the productivity as well as the quality of products. therefore, the educational enhancement of farers would help them learn the new farming skills that have been introduced in the world according to the modern era, and the government of malaysia will also attain the agriculture extension services. the significant regulation for promoting farmer’s orientation has a considerable influence on the agriculture department and the phenomenon of encouraging agriculture extension services in malaysia is seen to gain much importance since past recent years. at domestic level the farmer orientation is being encouraged by various industries and organizations to provide more information about environmental management accounting. in such a way the farmers can gain more knowledge to make fruitful decisions for the agriculture practices. in various circumstances, the agriculture extension services are promoted at a global level as an aspect to spread awareness to framers (rust, stankovics, jarvis, morris-trainor et al., 2021). the environmental management accounting is considered favorable in mitigating various issues in the agriculture mailto:r.shibli@ammanu.edu.jo mailto:s.saifan@ammanu.edu.jo mailto:shukri@msu.edu.my https://orcid.org/0000-0001-5688-4392 mailto:shakeerah@msu.edu.my https://orcid.org/0000-0002-1075-635x mailto:jacquline@msu.edu.my https://orcid.org/0000-0003-0966-2425 agbioforum, 23(2), 2021 | 51 shibli, saifan, yajid, shukri and tham. — the interaction between agricultural extension services and environmental management … department or eradicating the issues in making considerable decisions. the agriculture extensive services are quite helpful for framers to gain support in learning programs and to groom their practices in agriculture by following technical and managerial skills to develop themselves in farming. current study is based on encouraging rural adult learning programs and to provide basic information to farmers to overcome the use of traditional practices and increasing the significance of agriculture department in malaysia. the study also discusses the significance of educating farmers for utilizing new aspects in agriculture. in previous studies the use of agriculture extension services was not adequately discussed to provide education and knowledge to farmers as per their orientation. the farmers were much fond of practicing traditional methods as utilized by their ancestors and various evidence also confirm that still a lot of farmers use similar traditional methods to keep their customs alive. now as the world is progressing towards sustainability and environmental management accounting is being promoted in agricultural practices, it is the utmost need to educate farmers to bring some innovative measures in their daily practices. the current study is filling up gaps of previous studies by encouraging different campaigns that demand for promoting education of framers specifically in rural areas. the purpose of study is to highlight the significances of agriculture extension services for farmers to enhance productivity in crop fields and to encourage sustainability. according to the information described in justification rationale and the background of study it is obvious to highlight orientation of farmers as efficient products introduced in market are to satisfy consumers with nutritional crops and grain. the agriculture extension services have a significant role in upgrading the knowledge of farmers so that they can increase their productivity and earn better livelihood through framing and promoting sustainability. the main objectives of current study are: • to utilize farm mechanization with additional knowledge provided to farmers • to explore new ways of profitability with the use of advanced techniques in agriculture • to study the different aspects of environmental management accounting in agriculture the study discusses essential consideration of agriculture extensive services as orientation provided to farmers has a great impact on the productivity of agriculture department of malaysia. the usage of natural resources could be minimized in such circumstances if the sustainable activities are utilized by farmers in their daily practices. it is noted from past evidence that agriculture awareness provided to farmers is growing at a rate of 4% every year. multifunctionality in various subsectors of agriculture are encouraged by consumers at a global level to promote the basic education of farmers with extensive knowledge (gibassier & alcouffe, 2018). environmental management accounting has a significant aspect in identifying considerable issues and consequences of any negative impacts of agriculture practices on human health. in such situations agriculture extensive services are needed to promote the education of farmers and to highlight the significance of utilizing new ideas in farming to increase the profitability. farmers can develop their practical knowledge and make use of new techniques in their crop fields to enhance sustainability and to improve some managerial skills in their personality. farmers can improve the livestock controls and increase the crop varieties in agriculture and boosting food security at a global level (hayat, mamun, nasir, & nawi, 2019). in the respective study the structure of research would be followed by providing information about introduction of the selected topic. in the next part literature review would be explained. next chapter would be based on methodology and further information would be based on results enhanced from research. lastly, information will be further explained in discussion and conclusion category. 2. literature review 2.1. theory of value orientation the theory is based on the perceptions of the social groups on the general principles right and wrong. the idea of theory is further extended to the distribution or allocation of outcomes among self and others. cultural values strongly shape the ideas and beliefs in the social groups and has an influence on individual beliefs. institutional norms and everyday practice which reflect the underlying cultural values that are part of societies. the preference element in the value orientation is most prominently the values and ideals of each cultural group that has a significant impact on the cultural coherence. however, discrimination is also part of human nature, and this can take place in the value of orientation based on aggression, competition, equality, cooperation, and other factors. florence kluckhohn and fred strodtbeck developed a theory that based on principle that shape the actions (watkins & gnoth, 2011). the theory proposes that all the human societies must answer some universal problems. according to the scientist universal solutions are limited and people belonging to different cultures have different preferences. the cross cultural psyche is main basis of the theory that broadly aims to study and understand differences among human beings from different cultural backgrounds and to understand the similarities among all human beings (bogaert, boone, & declerck, 2008). the theory is important to understand and ensure successful communication in social groups by understanding cultural mores of the majority. social scientists and psychologist suggested measures for the orientation however with the time developments in the theory take place with increasing practical implications of the theory. values are considered central to human thoughts and emotions (van lange, agnew, harinck, & steemers, 1997). because the present prevailing situation in the cultural value orientations highlights the incompatible cultural aspects that can create criticism and pressure towards change. thus, the theory agbioforum, 23(2), 2021 | 52 shibli, saifan, yajid, shukri and tham. — the interaction between agricultural extension services and environmental management … has been widely used to study different cultures and has its wide practical applications in promoting understanding and enhancing negotiating skills in different ethnic groups. 2.2. agricultural extension services and environmental accounting over the period of last century, technology has tremendously developed the world and use of technology has become a norm in all walks of life. however, it is equally important that right use of technology to the concerned class of people must be taught to obtain the fruitful results. therefore the advent of technology and use of technology has no exception to this rule (birkhaeuser, evenson, & feder, 1991). agriculture extension is the critical force towards the development in the agricultural sector. agricultural extension is the application of the scientific research and scientific knowledge towards of agricultural aspect (aker, 2011). the service and system that assists the people related to agriculture and farms by providing them adequate knowledge and education to apply improved farming techniques to elevate the production and efficacy of farming procedures. agricultural extension services in related the environmental accounting that emphasizes on incorporating the environmental as well as economic information in the accounting. to educate the farm related people regarding the use of renewable energy resources in a way that is more economical and can help produce better results. this helps the farmers gain knowledge regarding physical gains and monetary profits by applying the new improved agricultural techniques (ahnad & lutz, 1989). thus, there exists a significant relation between agricultural extension services and environmental accounting. 2.3. development of agricultural extension service, management of agricultural extension service and environmental accounting a procedure that is well developed and well managed to convey the agricultural research findings to the farmers that can help them achieve agricultural goals more productively and more effectively is of great importance. in the 21st century where technology has developed has the aspects of human life making it easier and more productive. it is of great importance to educate the farm related people regarding the scientific and technological developments for agriculture. building and adopting the factors that contribute towards the farmer’s resilience from the environmental shocks and educating them to use the technology to lessen the effect of any shock towards farm is considered as an important step towards the development of the agricultural extension service (glendenning, babu, & asenso-okyere, 2010). agents who educate and teach the farmers regarding the methods to improve the farming practices and guiding them regarding the new techniques and efficient technology that can bring more fruitful outcomes must be supported (larrinaga-gonzalez & bebbington, 2001). in addition to this it is also important to manage the initiatives well taken towards the agricultural service to improve and enhance the productivity and yield generated. development in agricultural extension service and management of the agriculture extension can motivate the farmers towards the environmental accounting. 2.4. human resources for the agricultural extension service, resources adoption and environmental accounting agricultural extension services are considered as a multidisciplinary based human interaction, that aims to elevate and boost the livelihood of the farm relayed people by introducing new effective technological advances of agriculture. it mainly focuses on introducing the techniques and educating the farmers regarding their use and benefit. the staff that belongs to agricultural extension service and is on the field needs to be effective and vigilant enough while teaching and educating the farmers regarding new and improved technologies (leeuwis & van den ban, 2013). therefore, the human resource of the agriculture extension must work enough to meet the criteria to screening the individuals who can educate the farmers regarding techniques that are applied to different branches of agriculture including crop management, crop yield, agricultural economic and many more. furthermore it is of great importance to shed light on the human resource of the agricultural extension service as it also depends on credibility of the people on field that if the farmers reject their proposed new technology or adopt it (jones, 2010). thus, it can be concluded that human resources for the agricultural extension service that shape resources adoption also influence the environmental accounting in the farm associated people (malla & brewin, 2020). 2.5. agricultural extension services: it dimensions and environmental accounting; environmental costs and regulations, customer focus, environmental safety and managerial commitment the aim of agricultural extension services is to promote the use new technologies in the agriculture to enhance the production in ways that poses less threat to the environment and the environmental assets. moreover, to convince the farmers and farm related people towards the use of new technologies also enhance them towards the environmental accounting. this alarms people and especially farmers to use the renewable resources the planet is gifted with. using new techniques and technologies can help to lower the environmental cost that man has been paying for years because of his negligence (anderson & feder, 2007). man has been using the natural resources without any check and balance that has led to the deterioration of the resources. moreover, teaching the farmers towards the environmental regulation and counseling them towards their contribution to lessen the harm that man has been putting towards the planet. ensuring the customer focus and the managerial commitment attitude of the farmers towards achieving the goals of better environment by environmental accounting is possible through effective agricultural extension services (aldousari, agbioforum, 23(2), 2021 | 53 shibli, saifan, yajid, shukri and tham. — the interaction between agricultural extension services and environmental management … robertson, yajid, & ahmed, 2017; brown & fraser, 2006). therefore, agricultural extension services and its dimensions play a significant role in enhancing the farmers and farm related people towards the environmental accounting and towards the positive benefits and outcomes for the farmers as well as environment. 2.6. mediating role of farmer’s value orientation in social, intrinsic, experiential, and instrumental aspects in relation between agricultural extension services; its dimensions and environmental accounting and its dimensions agricultural service extension is educating farmers and farm related people regarding the new scientific researches that have led to more useful techniques in agriculture that elevate the livelihood of the farmers (gasson, 1973). these techniques also positively influence the attitude of the farmers towards the environmental accounting, which boosts the human efforts towards the sustainable development reducing the threats to the environment. however, the perception of the farmers towards these new scientific techniques plays a mediating role in struggle towards the more sustainable environment. while considering the attitude and perception of farmers towards the environmental accounting farmers value orientation plays a mediating role (van de kaa, 2001). the theory of value perception also highlights that human nature needs to some rules to control their behavior for the appropriate outcomes for the society. therefore, agricultural extension service is an effort to educate the farmers regarding new agricultural techniques that influence the practice of environmental accounting leading to environmental accounting and environmental safety. the following hypothesis can be generated for this study: h1: agricultural extension services have a significant impact on environmental accounting. h2: development of agricultural extension services influences environmental accounting. h3: management of agricultural extension services influences environmental accounting. h4: human resources for agricultural extension services influences environmental accounting. h5: resources adoption influence environmental accounting. h5: agricultural extension services, it dimensions influence the environmental costs. h6: agricultural extension services, it dimensions influence the environmental regulation. h7: agricultural extension services, it dimensions influence the customer’s focus. h8: agricultural extension services, it dimensions influence the environmental safety. h9: agricultural extension services, it dimensions influence the managerial commitment. h10: farmer’s value orientation plays a mediating role in relation between agricultural extension services, it dimensions and environmental accounting and its dimensions. h11: farmer’s social value orientation plays a mediating role in relation between agricultural extension services, it dimensions and environmental accounting and its dimensions. h12: farmer’s experiential value orientation plays a mediating role in relation between agricultural extension services, it dimensions and environmental accounting and its dimensions. h13: farmer’s intrinsic value orientation plays a mediating role in relation between agricultural extension services, it dimensions and environmental accounting and its dimensions. h14: farmer’s instrumental value orientation plays a mediating role in relation between agricultural extension services, it dimensions and environmental accounting and its dimensions. 3. method 3.1 population and sampling the data that has been used in this study has been collected from farmers in malaysia that are working in the organic agriculture sector. sampling techniques are used to extract a sample of appropriate size from a larger population so that the data can be collected from that sample to represent the entire population. main types of sampling include probability and nonprobability sampling. in the current study, non-probability sampling is used to select the most suitable sample set. the researcher had used the chain referral sampling technique in which the selected sample units are asked to provide the further respondents i.e., several farmers were contacted in the first stage of sampling (100 farmers) and later they were requested to further provide contact for more potential respondents. this technique has been opted by the researcher to reach the diverse farmer population of malaysia and save time and cost (penrod, preston, cain, & starks, 2003). the respondents are invited to fill the questionnaire and are requested to forward the link in their circle until a required sample size is achieved. 3.2 data collection 3.2.1. time horizon the current study follows a cross-sectional time horizon as it does not require to evaluate the before and after analysis of any phenomenon. meaning of cross-sectional or one-shot data collection is that the researcher collects the data from the participants within the same time zone. single stage data collection was enough to represent the data requirements in this study, therefore, the crosssectional approach was suitable for the current study. 3.2.2. data collection the researcher developed an online questionnaire for the purpose of data collection in this study. this technique is preferred as it is not possible to physically visit all the sites of data collection. a total of 100 farmers were initially sort listed and questionnaire links were emailed to them, out of which 81 were received at the end of first week and many new leads were also created so that more data could be collected by the chain referral technique. more responses were collected over the next two weeks. overall, 439 responses were collected. out of these 439 questionnaires, agbioforum, 23(2), 2021 | 54 shibli, saifan, yajid, shukri and tham. — the interaction between agricultural extension services and environmental management … 425 were included in the final analysis after filtering out the incomplete or incorrectly filled questionnaires. 3.2.3. questionnaire design in this study, the questionnaire was divided into two main parts, the first part included demographics questions and the second contained the main items that were used to collect the data for the research constructs which have been measured by using five-point likert type scale. all these scales were written in english. the items in this study have been taken from previous studies and were adjusted and reworded according to the needs of the current study. following the method recommended by campbell, brislin, stewart, and werner (1970) the questionnaire was first developed in english and then translated into malay using the forward and back translation method. two academicians who are fluent in both malay and english were consulted for the translation purpose. the translated questionnaire was pretested and reviewed. 3.2.4. measures the scales for the current study were adapted and developed according to the requirements of the present study. preexisting scales were used because their reliability and validity has already been established by several studies. however, to check the relevance and appropriateness of the scale in accordance with the context and requirements of the present study academicians were consulted to ensure the content validity of the scale. the response options for all the scales were based on a fivepoint likert scale ranging from “strongly disagree” to “strongly agree”. the measures used in this study are explained as below: • agricultural extension services (aes) is the first independent variable of this study. items for this variable are adopted and reworded from a previous research work by muh. hatta, amri, muhammad, ma’mun et al. (2017). aes is measured in terms of development, management, human resources, other resources etc. • farmers value orientations is the second independent variable of this study. items for this variable are adopted and reworded from a previous research work by frost (2000). instrumental, expressive, intrinsic, and social values were measured in this study. • environmental managerial accounting was the dependent variable in this study which was measured in terms of environmental cost, environmental regulation, environmental safety, management commitment and customer focus based on the study by fuzi, habidin, janudin, and ong (2019) and gunarathne and lee (2015). 3.3 ethical considerations the ethical values help to ensure the credibility of the research (cortina, 2020). therefore, several steps were taken by the researcher to keep the confidentiality of the data that the researchers collected from respondents (creswell & creswell, 2017). the respondents were informed, through a cover letter that was attached to the questionnaire, that the participation in this research is voluntary and were ensured that their data would be kept authentic and anonymous. 3.4 statistical techniques the collected data has been analyzed by using spss and amos for the purpose of conducing several tests and techniques that are applied on the collected data. sem has been used in this research for the purpose of testing the validity of the proposed hypotheses (bollen, 1989) . for analyzing the influence exerted by various latent variables, sem has been fitted. this model has been selected because it allows for the inclusion of predictors and can handle complex research models that includes more than one dependent variable. the researcher used spss for demographic analysis, descriptive analysis, and factor analysis whereas the confirmatory factor analysis and structure equation modeling was conducted using amos. 4. results 4.1. demographic profile demographic information is usually background characteristics of respondents like age, income, education, work situation, marital status, etc. in this study, the demographic profiling is built using three factors including gender, age, and work experience. in this study, the researcher has selected farmers from the organic agricultural sector in malaysia to collect the accurate research data. according to the demographic profile, a total of 425 respondents were included in the final data set. analysis of the demographic details of the dataset in the current study, it was found that 75.7 percent were males (322), and 24.3 percent were females (103). 11.05 percent of the respondents were aged below 25, 52.2 percent were between the ages of 25 to 35 years, 33.5 percent were aged between 35 and 45 while 3.4 percent were over 45. the farming experience data was also collected, and the results showed that 11.5 percent of the respondents had experience of less than 1 year, 52.9 percent had an experience between 1 and 3 years, 23.2 percent had 3 to 5 years of experience and the rest 12.4 percent had over 5 years of experience in the field of organic agriculture. table 1: demographic profile frequency percent gender male 322 75.7 female 103 24.3 total 425 100.0 age less than 25 year 47 11.05 25 to 35 years 222 52.2 35 to 45 years 143 33.6 more than 45 years 13 3.15 total 425 100.0 experience less than 1 year 49 11.5 1 to 3 year 225 52.9 3 to 5 year 98 23.2 more than 5 year 53 12.4 total 425 100.0 agbioforum, 23(2), 2021 | 55 shibli, saifan, yajid, shukri and tham. — the interaction between agricultural extension services and environmental management … 4.2. descriptive statistics descriptive statistics allow a researcher to manage large datasets and helps in presenting the results in summary tables. several descriptive tests are performed in a study to evaluate the accuracy and normality of the dataset. normality evaluation is carried out in order to ensure that the data set is well-modelled and collected data follows a normal distribution (park, 2015). the minimum and maximum values are used to evaluate the range of the measurement scale, i.e., between 1 and 5 for the 5-type likert scale that has been used in this survey. the mean values are the average of response for each item. the skewness is a measure of distortion or asymmetry in in the normal distribution of a data set (ho & yu, 2015). table 2 given below shows the results for the descriptive statistics for the data of this research. the n statistics is the number of respondents, and it is 425 for all the constructs showing no value is missing or inaccurate. the mean statistics shows the responses are averaging between 3.3 and 4.9. the table also shows values for standard deviation and skewness. the skewness values are supposed to lie between the range of +1 and -1 for the validity to hold and as per the results, the data is normally distributed as skewness and the range of data (minimum and maximum) are within the prescribed thresholds. table 2: descriptive statistics n minimum maximum mean std. deviation variance skewness daes 425 1 5 4.56 1.657 2.746 .150 .241 maes 425 1 5 4.89 1.933 3.735 -.234 .241 hraes 425 1 5 3.39 .994 .988 -.171 .241 ra 425 1 5 3.31 1.126 1.268 -.177 .241 soc 425 1 5 3.36 1.087 1.181 -.223 .241 int 425 1 5 3.34 .930 .865 -.138 .241 exp 425 1 5 3.16 .786 .618 -.161 .241 ins 425 1 5 3.15 .964 .930 -.120 .241 envc 425 1 5 3.23 .990 .979 -.114 .241 envr 425 1 5 3.1920 .79235 .628 -.179 .241 cfo 425 1 5 3.7840 1.00611 1.012 .168 .241 mco 425 1 5 3.8863 .99778 .996 -.009 .240 es 425 1 5 3.6059 .95727 .916 .073 .240 valid n (listwise) 425 4.3. sample reliability and adequacy sample reliability is tested based on cronbach’s alpha. cronbach’s alpha is used to measure the internal consistency in the items of the research model as it can indicate how closely a set of items is related as a group (heo, kim, & faith, 2015). according to table 3 below, the cronbach’s alpha for the current model is 0.65. this can be interpreted as 65% internal consistency in the model i.e., the items are moderately able to explain the same outcomes. table 3: reliability statistics cronbach's alpha cronbach's alpha based on standardized items n of items .650 .649 13 kaiser meyer olkin (kmo) test is used for the evaluation and measurement of the adequacy and suitability of the data set. table 4 enlist the results of the kmo analysis and shows that the kmo value for the sample is 0.814 which is significantly high and means that the sample is 81.4% capable of explaining the factors accurately. bartlett's test of sphericity tests whether the correlation matrix is an identity matrix (peri, 2012) and is carried out to evaluate whether there is presence of redundancy among the variables. bartlett’s sphericity values less than 0.05 level of significance are acceptable. tables 4 displays that the dataset has bartlett’s significance of 0.000 showing that there is no redundancy in the dataset. table 4: sample adequacy kmo and bartlett's test kaiser-meyer-olkin measure of sampling adequacy. .814 bartlett's test of sphericity approx. chi-square 805.978 df 78 sig. .000 4.4. convergent and discriminant validity convergent and discriminant validity are the subtypes of the construct validity; the presence of both kinds of validity is necessary for establishing construct validity. convergent validity, relevance of related factors, is evaluated based on the ave, cr and msv values. the discriminant validity, non-relevance of non-related factors, is evaluated by loading factors (holton iii, bates, bookter, & yamkovenko, 2007). the threshold values for composite reliability are 0.7, average variance extracted is 0.5 and msv values are supposed to be less than ave. whereas the decision rule for discriminant validity is that for it to be established the self-correlation value is supposed to be higher than the variable correlations. table 5: convergent and discriminant validity cr ave msv aes fvo env aes 0.724 0.726 0.578 0.862 fvo 0.838 0.716 0.494 0.573 0.746 env 0.994 0.679 0.578 0.760 0.669 0.854 agbioforum, 23(2), 2021 | 56 shibli, saifan, yajid, shukri and tham. — the interaction between agricultural extension services and environmental management … table 5 displays the results for convergent and discriminant validity. cr and ave are as per the recommended threshold values i.e., they are greater than 0.7 and 0.5, respectively. the msv values are also less than ave thus convergent validity is present. the selfcorrelation values for the constructs are greater than their inter-variable correlations, thus discriminant validity is also present. 4.5. confirmatory factor analysis confirmatory factor analysis has been used to test the viability of the research model as a whole (thompson, 2004). table 6 presents the results of the cfa for the purpose of confirming the model fitness before sem is performed on it based on several indicators. cmin/df value is reported to be 1.009, which is under the limit value of 3, gfi value is 0.765 which is greater than the limit value of 0.8, cfi and ifi are reported to be 0.966 which are greater than the recommended lower value of 0.9 and the rmsea values are also less than the recommended 0.08 i.e., 0.082. the results show that the theoretical model is fit and can be further processed for sem. table 6: confirmatory factors analysis indicators threshold range current values cmin/df less or equal 3 1.009 gfi equal or greater .80 .765 cfi equal or greater .90 .966 ifi equal or greater .90 .966 rmsea less or equal .08 .082 figure 1: cfa 4.6. hypothesis testing the table 7 summarizes the hypothesis testing which has been done through structural equation modeling (sem in this study. sem simply stated is an advanced technique of statistics that is used to measure the structural relationships existing between the latent constructs and the measured variables. there are many benefits of applying sem such as its ability to explicitly assess measurement error in the research data and model and showcase the standard error in the findings. the results in table 7 show that the direct effect of agricultural extension services on environmental managerial accounting is found to be significant at 0.05 significance level. the results indicate that the increase of one unit of agricultural extension services will lead to an increase of 25.5% of environmental managerial accounting. similarly, the direct effect of farmers value orientation on environmental managerial accounting is also found to be significant at 0.05 significance level. the results indicate that the increase of one unit of farmers value orientation will lead to an increase of 18.6% of environmental managerial accounting. as for the circular impact of environmental managerial accounting on agricultural extension services, it is also found to be significant at 0.05 significance level. the results indicate that the increase of one unit of environmental managerial accounting will lead to an increase of 20.5% of agricultural extension services. agbioforum, 23(2), 2021 | 57 shibli, saifan, yajid, shukri and tham. — the interaction between agricultural extension services and environmental management … table 7: hypothesis testing path estimate s.e. c.r. p env <--aes 0.255 0.096 -4.115 *** env <--fvo 0.186 0.118 -2.409 .016 aes <--env 0.205 0.095 -2.716 .007 5. discussion the environmental accounting, also known as “green accounting,” is very important in today’s world of sustainable development. many economists as well as scholars have worked to determine the significance of environmental accounting in the agricultural sectors as well as many other manufacturing sectors around the globe. the present study is also conducted to determine the impact of agricultural extension services on the environmental accounting when the farmer value orientation is considered in context of malaysia. for this purpose, a model was developed, and different hypotheses were formulated. the results obtained from this research study showed that the agricultural extensions services has a significant impact on the environmental accounting. different studies conducted in the past also supported this argument. according to fabregas, kremer, and schilbach (2019), the development of the agricultural extension services help in promoting the knowledge as well as awareness of the farmers related to different technologies. the main aim of the extension services, is to promote the acceptance and implementation of the agricultural technologies by the farmers (ma, renwick, yuan, & ratna, 2018). the adaptation of resources by the farmers is thus done very professionally with such services. both private as well as public organizations play an essential role in promoting these services. the hr of the agricultural extension services is also maintained and the communication between the individuals is improved by promoting the values as well as better attitude (mcdougall, kristiansen, & rader, 2019). this has an important impact on the behaviors of the farmers. such reformations promoted by the agricultural extension services, leads to promotion of environmental accounting thus promoting sustainable development in the country (pannell & claassen, 2020). this study also showed that the beliefs leading to the values of the farmers, also play an important role in the environmental accounting. however, the obtained results showed that “farmer value orientation” has a significant impact on environmental accounting. the beliefs of the farmers results in their self-efficacy which has an impact on their performances as well and the decision-making processes. according to pretty (2018), the value orientation of the farmers help in guiding them through proper channels and providing the natural resources for developing a better environment. steinke, van etten, müller, ortiz-crespo et al. (2021), also stated that the social behavior of the farmers has an important impact on their decisions taken for the environmental accounting. however, it has been observed that the agricultural extensions services has a significant impact on the environmental accounting when the farmer value orientation is also considered. this is because the proper regulatory measures are taken, and the belief system helps in promoting the safety of the customers. the values help in the managerial commitment as well as in the accounting matters (tschofen, azevedo, & muller, 2019). the extension services also support this as proper guidance and awareness is provided to the farmers which leads to better and effective environmental accounting leading to an increase in sustainable development. this helps in maintaining the costs as well as developing policies for forming new quality regulations. according to many economists, the economic growth is considered to be important along with the sustainable development (valizadeh, bijani, & abbasi, 2018). the “theory of value perception” also highlights that human nature needs to some rules to control their behavior for the appropriate outcomes for the society. this study helped in determining the role of values on the environmental accounting. 6. conclusion the sustainable development is being progressed in today’s era. different manufacturing companies as well as agricultural sectors are taking important measures to promote sustainable development by retaining the natural resources. this help in improving the overall environmental accounting as well thus promoting the “green environment” for a better future. this helps in preventing the natural resources from being extinct so that the future generations can also enjoy the available natural resources. the focus of this research study was to determine the impact of agricultural extension services on the environmental accounting when the farmer value orientation is considered in context of malaysia. the results obtained from this research study showed that the agricultural extension services help in providing better knowledge as well as information about the new technologies to the farmers which help them in environmental accounting. the beliefs as well as values of the farmers, also play an important role in this regard. it has been observed that the farmers with high level of selfefficacy were more likely to achieve higher and effective outcomes as compared to the farmers with low level of self-efficacy. thus, the study helped in concluding the significant impact of agricultural extension services as well as the value orientation of the farmers, on the environmental accounting. 7. limitations and future research indications the past studies conducted in the past on environmental accounting did not provide sufficient information in context of agricultural sectors. this research study helps in elaborating the impact of agricultural extension services on the environmental accounting as the agricultural sectors are considered to play a primary role in improving the environmental accounting to obtain sustainable development. such studies should also be conducted that would have an impact on the policy development of the governments as well as their regulations. this would be very beneficial for the agricultural sectors around the globe. agbioforum, 23(2), 2021 | 58 shibli, saifan, yajid, shukri and tham. — the interaction between agricultural extension services and environmental management … for this research study, only malaysia was considered. however, the cross-sectional studies should be promoted to obtain more vast approach to the topic by considering different point of views to fill the gap and promoting new measures and techniques for the rural farmers to improve their farming techniques to promote sustainable development. this is very effective for the future generations to come. many variables are considered to have an impact on the environmental accounting. however, for this research study, only agricultural extension services and the value orientation of farmers, were considered. for future studies, other variables including the political views, environmental instability etc. should also be considered to have a better understanding of the methods required to maintain the environmental accounting. 8. implications this research study not only helped in improving the literature review of the selected topic. but it also helped in many practical implications as well as regardless of the standards it has maintained for the theoretical implications for the future studies. this research helped the malaysian government to develop different policies regarding the promotion of extension services as well as for the promotion of environmental accounting. different educational programs are introduced. the recruitment system is improved as well as developed with the passage of time to have a better value system. the work-life balance is promoted by different private as well as public sectors to improve the productivity by the farmers. the knowledge of the farmers is also kept updated by means of different digital devices. this helped not only in promoting the crop productivity but also helped in improving the social behaviors of the farmers towards each other as well as others and the education played an important role in this regard. thus, different reforms were also made by the government to promote agricultural education and make it common in all rural areas of malaysia to have better future farmers that could lead the world towards sustainable development. this helped in promoting economic growth of the country as well in retaining the natural resources for the future generations. references ahnad, y. j., & lutz, e. 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sciences/ college of administration and economics/ university of babylon, iraq email: asamcultural@itnet.uobabylon.edu.iq kareem obayes hassan al-azzawi department of financial and banking sciences/ college of administration and economics/ university of babylon, iraq email: bus.kareem.obayes@uobabylon.edu.iq recent stock market volatility is a result of economic problems that require the attention of policymakers and current scholars. consequently, this article examines the effect of macroeconomic variables such as inflation, national income, employment rate, interest rate, and gross domestic product (gdp) growth on the iraqi stock market. from 1988 through 2020, this study uses secondary data from the world bank database. in addition, the dynamic auto-regressive distributed lags (dardl) method was used to examine the association between constructs. inflation, national income, employment rate, interest rate, and gdp growth were found to have strong and positive correlations with the iraqi stock market. this article assists regulators in creating policies regarding the sustainability of the stock market utilizing macroeconomic factors. key words: macroeconomic variables, inflation, national income, employment rate, interest rate, the stock market in iraq. 1. introduction unlike other markets, a country's stock market deals with selling and acquiring securities such as shares. the stock market is critical for a nation's economy to be formed on solid ground. its economic relevance results from two factors (anh et al., 2021). first, it gives the means to increase economic investment. second, it fosters healthy rivalry among businesses and stimulates business effectiveness on the part of individual businesses, hence promoting economic growth. thirdly, it provides a platform for individuals and organizations to use their funds to profit and sustain their living standards. as potential customers, these individuals contribute to their respective nations' economic progress (insaidoo et al., 2021). if the stock market's success, as represented by stock returns, is substantially higher, investors have greater wealth and confidence in the future. purchasing securities raises total spending as an investment in companies. the tendency to improve and maintain stock market performance increases the business effectiveness of organizations. moreover, stronger stock market performance raises people's living standards and stimulates economic trade (lin et al., 2022). numerous macroeconomic factors such as inflation, gdp growth, national income, employment rate, and lending interest rate impact the stock return. there is inflation when there is an increase in the prices of services and goods in the economy. typically, economic activity is brisk in these circumstances, and there is a struggle to improve production to increase sales. consequently, the improved financial condition enables the corporations to provide bigger stock returns (john, 2019). the rise in gdp growth indicates economic advancement and improved economic and technological resources. therefore, increased business efficiency and profitability incentivize corporations to boost stock returns (faris et al., 2021). the national income of a country represents the total value of the goods and services produced by its residents and businesses over its fiscal year. when product and service production increases and revenue increases, the stock's return also rises (hassan et al., 2019). the employment rate determines the amount of labor in various economic sectors. the rise in the employment rate results in increased output and greater stock market gains. similarly, the lending interest rate is beneficial and stable; corporations have the power to expand their businesses and pay more for their stocks on the market (ali, 2022). in its early years, the iraqi stock market was limited to penand-paper trading, and a whiteboard was used to clear each company's purchase and sell prices. in 2006, the iraqi stock exchange was closed for many months due to unrest. in the same year, however, there were 92 trading sessions (an average of two per week), 57 billion shares (worth 146 billion dinars) were traded, and 38,000 trades were executed (aljawaheri et al., 2021). the trading floor is open three days a week from 10:00 a.m. to 12:00 p.m. the iraqi stock market was opened to foreign investors in august 2007. the financial crisis of 2008 had little effect on it. it commenced electronic trading in april 2009. only five companies were available for electronic trading, but more were expected to be added in the following months. the stock market experienced one of the world's finest first quarters of 2018 due to an influx of investors encouraged by the demise of the islamic state. as a result of recent developments, the number of publicly traded enterprises is gradually increasing. still, the iraqi market faces numerous obstacles, and its performance is inconsistent (al-wattar et al., 2019). consequently, a study on the performance of the iraqi stock exchange is necessary. the present study satisfies this condition because its purpose is to examine the effects of macroeconomic parameters such as inflation, gdp growth, national income, unemployment rate, and lending interest rate on stock return. mailto:amaniamer903@gmail.com mailto:asamcultural@itnet.uobabylon.edu.iq mailto:bus.kareem.obayes@uobabylon.edu.iq agbioforum, 24(2), 2022 | 24 najiand, aljebory and al-azzawi. — the impact of macroeconomic variables on the performance of the iraqi stock market this study provides a substantial contribution to the body of knowledge. several authors in the past have investigated the role of macroeconomic factors such as inflation, gdp growth, national income, employment rate, and lending interest rate in stock return. however, these scholars have focused on only one or two elements for elaborating stock returns. the current study's analysis of all these parameters used to evaluate stock returns is significantly more detailed. therefore, it contributes to the literature. 2) most studies have evaluated the correlation between inflation, gdp growth, national income, employment rate, and lending interest rate with the stock return at a certain time. however, the present study, which evaluates the abovementioned macroeconomic determinants' impact on stocks over a lengthy period, contributes to the existing knowledge. 3) for the iraq stock market, there is minimal research and discussion on the variation in stock returns due to changes in macroeconomic parameters such as inflation, gdp growth, national income, employment rate, and lending interest rate. this gap is filled by the current article, which focuses on the performance of the iraqi stock exchange. in addition to the introduction, the second section of the study provides a pertinent literature review. thirdly, there is information regarding collecting data and its analysis to extract outcomes. in the debate, the results are confirmed. later, study implications, limits, and a conclusion are provided briefly. 2. literature review the success of the stock market determines the strength of an economy. it increases the trading of goods and services within the economy and the overall investment in the country's businesses (asaad et al., 2020). stock returns reflect the real performance of a country's stock market. several macroeconomic factors influence stock returns, such as inflation, gdp growth, national income, employment rate, and lending interest rate. the relationship between inflation, gdp growth, national income, employment rate, and lending interest rate with stock return has been examined in various ways in the extant literature. in the next paragraphs, the relationship between macroeconomic factors such as inflation, gdp growth, national income, employment rate, lending interest rate, and stock return is demonstrated by analyzing prior research. inflation is the steady increase in the prices of goods and services over a particular period. during an inflationary time, the demand for various goods and services is high, and the higher prices may result in increased profits for manufacturers. when firms acquire greater profits, they are also prepared to pay higher stock dividends (innocent et al., 2018). alqaralleh (2020) examines the correlation between inflation and stock returns. from january 2000 through january 2019, g7 countries provided monthly time-series data regarding inflation and stock returns. nonlinear autoregressive distributed lag (nardl) was utilized for analysis. the findings revealed an inverse link between inflation and stock gains. the increase in stock returns raises the demand for goods and services, resulting in inflation as the price level rises. similarly, the rising inflation rate increases the companies' sales earnings and stock returns. raghutla et al. (2020) investigate the connection between inflation, output, and stock returns. the imf and bloomberg's online international financial statistics were utilized to obtain statistics on industrial production, the price index for inflation, and stock prices on the bombay stock exchange. january 1990 to june 2016 was the selected analysis period. the results reveal a favorable relationship between inflation, production, and stock returns. if the inflation rate increases, there will be an increase in the overall output of the firms, which will lead to a rise in stock returns. while the gdp growth rate is increasing, economic activity within the country is thriving. when certain companies actively function and accomplish larger production and marketing for their products and services, their actual earnings also improve. in this circumstance, corporations increase the projected dividend on their shares (kalam, 2020). huy et al. (2020) investigate the effects of gdp growth rate on stock prices. data for the relevant parameters and stock prices were acquired from vietcombank (vcb), a vietnamese commercial bank with a share capital structure, between 2014 and 2019. the analysis suggests a correlation between the gdp growth rate and stock prices. companies in a nation with a continually higher rate of gdp growth are utilizing modern production methods to meet their clients' needs. therefore, businesses may produce more revenue from product sales, and their improved financial standing enables them to pay bigger dividends on stock. thus, economic growth and stock prices are positively correlated. gunarto et al. (2019) study the effects of macroeconomic indices such as gdp growth, inflation, and interest rate on stock returns. time-series, crosssectional, and event studies were used as a research design. for 2008-201, information on macroeconomic conditions and stock returns was collected from large-scale indonesian corporations. the descriptive statistics, correlation, normality, multicollinearity, regression, f, and t-test, were performed to obtain reliable results. these results demonstrated a positive association between gdp growth, other macroeconomic indicators, and stock returns. the rise in national income represents the rise in the value of goods and services produced by the economy over a certain period. the output of products and services increases as the national income rises, and the production level is anticipated to increase and yield more profits. with increased production and marketing of goods and services, businesses may be able to create greater money. these corporations offer greater stock returns (cavalli et al., 2022). swaroop et al. (2020) investigate the relationship between gdp growth, national income, and stock returns. india provided the data for the national income-nexusagbioforum, 24(2), 2022 | 25 najiand, aljebory and al-azzawi. — the impact of macroeconomic variables on the performance of the iraqi stock market stock return and the gdp-nexus-stock return for the years 1998-2019 and 2019-2020, respectively. unit root tests, johansen co-integration test, granger causality test, and vec model with wald test were conducted to extract results from the data analysis. according to the findings, there was a substantial positive correlation between national income, gdp growth, and stock returns. business firms can conduct their operations sustainably in nations focusing on increasing and sustaining the national income. consequently, the efficiency and effectiveness of business operations result in increased earnings and a rise in stock market value. ranjbar et al. (2018) explore the influences of national income stock returns using 1995-2015 data from d8 nations. to propose a model, the gmm method was utilized. the value of a company's shares and other securities on the stock market depends on the company's operational performance. when the national income rises, the corporation may enhance its business performance and raise the prices of its shares and other securities on the stock market. all economic actions, whether or not they include the use of technology, are performed by human resources. the employment of laborers is crucial for the firm's survival and for enhancing its stock market value due to increased company profitability (he et al., 2020). (goel et al., 2021) analyze the relationship between the employment rate and stock returns in a study piece. the united states serves as the focal point for investigating the desired relationship between 1985 and 2018, using data obtained from official websites governed by scott baker, nick bloom, and steven davis. when the employment rate increases and enterprises hire more productive capital, departments, facilities, and manufacturing units may be expanded, and items can be advertised more effectively, according to the study. the increased sales increase the period's overall profitability. after subtracting profits as reserves, corporations now have more money to give to shareholders. therefore, with the growth in the employment rate, stock returns increase. masood et al. (2019) did quantitative research to examine the relationship between employment rate, oil prices, and stock return. through the oecd website and oil intelligence report, g7 nations, including germany, italy, japan, the united kingdom, france, canada, and the united states, provided data for the factors. the study hypothesizes that an increase in the employment rate increases the level of production in all business organizations and the need for oil reserves. the rising prices of oil commodities cause the stock prices of oil businesses to increase. therefore, employment rate and stock returns are positively correlated. the lending interest rate is the rate of fees imposed by lenders on borrowed money. if the interest rate is reasonable and advantageous, corporations can afford to finance a substantial amount of their operations. the increased capital provided by loans helps companies to implement innovative approaches and resources. organizations can gain business effectiveness and competitive advantages through innovation adoption. successful businesses can provide greater stock returns (iqmal et al., 2020). dwi (2019) examines the significance of interest rate, investment, inflation, return on assets, and stock returns. the relevant data was compiled from soe banks listed on the indonesian stock exchange from 2012 to 2016, including pt bank negara indonesia tbk, pt bank mandiri tbk, pt bank rakyat indonesia tbk, and pt bank tabungan negara tbk. multiple linear regression analysis, t-test, and f-test were performed using spss 19. the findings revealed a substantial relationship between lending interest rates and stock returns. rafiq et al. (2019)'s literary workout centered on the relationship between interest rate, exchange rate, market risk, and bank stock returns. pakistan provided the panel data for the years 2007 to 2018. the authors utilized ols to examine the relationship between these variables. the findings revealed a correlation between lending interest rates and stock return. a competitive lending interest rate offered by commercial banks encourages economic investment. to the extent that they can arrange for greater returns on their shares and other securities, the companies that benefit from loans with reasonable interest rates can increase their capacity. 3. research methods this article examines the influence of macroeconomic variables such as inflation, national income, employment rate, interest rate, and gdp growth on the iraqi stock market. from 1988 through 2020, this study uses secondary data from the world bank database. the study's equation is given below: 𝑆𝑅𝑡 = 𝛼0 + 𝛽1𝐼𝑁𝐹𝑡 + 𝛽2𝐺𝐷𝑃𝐺𝑡 + 𝛽3𝑁𝐼𝑡 + 𝛽4𝐸𝑀𝑅𝑡 + 𝛽5𝐿𝐼𝑅𝑡 + 𝑒𝑡 (1) where; sr = stock return t = period inf = inflation gdpg = gross domestic product growth ni = national income emr = employment rate lir = lending interest rate the primary variable of the study was the stock market return, which was measured with stocks traded, and total value (% of gdp). in addition, the study employed five macroeconomic variables as predictors, including inflation as measured by consumer prices (annual%), gdp growth as measured by gdp growth (annual%), national income as measured by adjusted net national income (annual% growth), employment rate as measured by employment to population ratio, 15+, total (%), and lending interest rate as measured by lending interest rate (%). table 1 contains the variables that can be measured. agbioforum, 24(2), 2022 | 26 najiand, aljebory and al-azzawi. — the impact of macroeconomic variables on the performance of the iraqi stock market table 1: variables with measurements s# variables measurement sources 01 stock market return stocks traded, total value (% of gdp) wdi 02 inflation inflation, consumer prices (annual %) wdi 03 gross domestic product growth gdp growth (annual %) wdi 04 national income adjusted net national income (annual % growth) wdi 05 employment rate employment to population ratio, 15+, total (%) wdi 06 lending interest rate lending interest rate (%) wdi the research employs descriptive statistics to illustrate the specifics of the variables. in addition, the article employs the correlation matrix, which illustrates the direction of the relationship between variables. in addition, the study utilized the phillips-perron (pp) and augmented dickeyfuller (adf) tests to determine the existence of the unit root. the following equations are given: 𝑑(𝑌𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑌𝑡−1 + 𝑑(𝑌𝑡(−1)) + ɛ𝑡 (2) additionally, the article also applies the (westerlund et al., 2008) approach that shows the co-integration exists or not. the equations are given below: lmφ(i) = tφ̂i (r̂i/σ̂i (3) lmτ(i) = φ̂i/se(φ̂i) (4) in given equations, besides standard error exposed by �̂�𝒊, while long-run measured variance is exposed by �̂�2 𝑖, scalar polynomial with l lag length exposed by 𝜑𝑖 (𝐿) = 1 − ∑ 𝜑𝑖𝑗𝐿𝑗, and factor loading parameters vector i exposed by ρi. in addition, the dardl method was used to examine the association between constructs. it is a novel strategy created by jordan and philips. it eliminates every shortcoming of the ardl method. it applies when some variables lack unit roots at i(0) while others lack unit roots at i. it also applies when there is co-integration. in addition, 5000 simulations are performed for the vector of parameters using multivariate normal distributions for the dardl simulations model. the equation is given as follows: ∆𝑆𝑅𝑡 = 𝛼0 + ∑𝛿1∆𝑆𝑅𝑡−1 + ∑𝛿2∆𝐺𝐷𝑃𝐺𝑡 + ∑𝛿3∆𝐺𝐷𝑃𝐺𝑡−1 + ∑𝛿4∆𝐼𝑁𝐹𝑡 + ∑𝛿5∆𝐼𝑁𝐹𝑡−1 + ∑𝛿6∆𝑁𝐼𝑡 + ∑𝛿7∆𝑁𝐼𝑡−1 + ∑𝛿8∆𝐸𝑀𝑅𝑡 + ∑𝛿9∆𝐸𝑀𝑅𝑡−1 + ∑𝛿10∆𝐿𝐼𝑅𝑡 + ∑𝛿11∆𝐿𝐼𝑅𝑡−1 + ɛ𝑡 (5) 4. findings results the research employs descriptive statistics to illustrate the specifics of the variables. the study's findings revealed that the average sr value was 33.073 percent, the average inf value was 51.270 percent, and the average gdpg value was 7.316 percent. in addition, the study results revealed that the average ni value was 5.776%, the average emr value was 38.1136%, and the average lir value was 15.507%. table 2 displays these results. in addition, the article employs the correlation matrix, which illustrates the direction of the relationship between variables. inflation, national income, employment rate, interest rate, and gdp growth were found to have significant and positive relationships with the iraqi stock market. table 3 displays these results. in addition, the pp and adf tests are utilized to determine whether or not the unit root exists. according to the results, the sr, inf, gdpg, and lir have no unit root at the level, whereas the ni and emr have no unit root at the first difference. table 4 displays these results. in addition, the article applies the (westerlund & edgerton, 2008) methodology that demonstrates whether or not cointegration exists. the results revealed that the p-values are less than 0.05 and the t-values are greater than 1.96, indicating the existence of exposed co-integration. table 5 displays these results. the article also utilized the dardl methodology to examine the relationship between constructs. inflation, national income, employment rate, interest rate, and gdp growth were found to have strong and positive correlations with the iraqi stock market. table 6 displays these results. table 2: descriptive statistics variable obs mean std. dev. min max sr 33 33.073 0.756 31.893 34.323 inf 33 51.270 104.067 -16.117 448.500 gdpg 33 7.316 21.782 -64.047 57.818 ni 33 5.776 9.283 -30.149 16.672 emr 33 38.113 0.753 35.556 38.825 lir 33 15.507 2.225 12.293 19.215 table 3: matrix of correlations variables sr inf gdpg ni emr lir sr 1.000 inf 0.482 1.000 gdpg 0.115 0.002 1.000 ni 0.091 -0.055 0.111 1.000 emr 0.760 0.322 0.176 0.201 1.000 lir 0.823 0.375 0.054 0.203 0.585 1.000 agbioforum, 24(2), 2022 | 27 najiand, aljebory and al-azzawi. — the impact of macroeconomic variables on the performance of the iraqi stock market table 4: unit root test adf pp series level first difference level first difference sr -3.844*** ------2.553*** ----- inf -4.965*** ------2.895*** ----- gdpg -2.084*** -----3.722*** ----- ni ------5.738*** ------5.674*** emr ------5.893*** ------6.896*** lir -3.673*** ------4.383*** ----- table 5: co-integration test model no shift mean shift regime shift test stat p-value test stat p-value test stat p-value lmτ -4.783 0.000 -4.855 0.000 -5.449 0.000 lmφ -4.378 0.000 -4.733 0.000 -5.786 0.000 table 6: dynamic ardl model variable coefficient t-statistic prob. ect -3.985*** 2.837 0.031 𝐼𝑁𝐹𝑡−1 1.289*** 4.883 0.000 inf 2.895** 2.893 0.029 𝐺𝐷𝑃𝐺𝑡−1 3.739* 4.873 0.000 gdpg 1.749*** 6.734 0.000 𝑁𝐼𝑡−1 2.894*** 5.747 0.000 ni 1.893*** 2.322 0.041 𝐸𝑀𝑅𝑡−1 0.675** 3.367 0.020 emr 0.830** 4.673 0.000 𝐿𝐼𝑅𝑡−1 2.843*** 5.776 0.000 lir 3.267** 4.332 0.000 cons 3.998** 2.219 0.047 r square = 62.377 stimulation = 5000 5. discussions the results indicated that inflation is positively related to stock return. these results are consistent with john (2019)'s research, which demonstrates that output and other economic activity are at their height during an inflationary time. in this scenario, corporations gain greater profits on individual products and total sales. the return on shares increases as a result of excessive earnings. previous research by omodero et al. (2019) on the effects of inflation on stock return supports these findings. according to the authors, stock returns are now greater than they were when the country was experiencing widespread inflation. the results demonstrated a positive correlation between gdp growth and stock return. these findings are consistent with the findings of li et al. (2022), which demonstrate that when a nation's gdp growth increases, there is a tendency for all economic sectors to become more productive. this increases the demand for additional products utilized as raw materials or other production resources. consequently, rising prices increase the stock's return. these findings are corroborated by a recent study by chue et al. (2019), which demonstrates that when the gdp growth rate increases, so do the demand; thus, the prices of products and services increase. increasing the return on the stock is ultimately made possible by a rise in sales revenue. the results indicated a correlation between national income and stock return. these results are consistent with palma (2019)'s research, which indicates that growth in the national income indicates favorable economic conditions in which businesses can raise their efficiency and earn greater profits. thus, their financial position is improving, and the company's stock performance must also rise. these findings are corroborated by a prior study by priyambudi et al. (2021), which demonstrates that if a country has a larger national income, the companies will generate bigger profits through the sale of their products and services, as well as indirect revenues so that they can pay more for stock shares. the results indicated a positive relationship between the employment rate and stock return. these findings are consistent with the conclusion of mazur et al. (2021)'s study, which asserts that when the employment rate is high, a greater number of workers engage in economic activities. greater productivity can result in increased stock returns for corporations. these findings are consistent with a prior study by dakhoul (2018), which claims that employing additional people might provide firms with competitive advantages and higher stock returns. the findings revealed a correlation between loan interest rates and stock performance. these findings are consistent with gao et al. (2022)'s research, which indicates that if the lending interest rate is greater than the previous rate, the amount of money lent will also be greater. individual firms will be more able to generate profits and distribute them to their shareholders. these findings are also consistent with rehan et al. (2019)'s research, which asserts a positive relationship between loan interest and stock return. agbioforum, 24(2), 2022 | 28 najiand, aljebory and al-azzawi. — the impact of macroeconomic variables on the performance of the iraqi stock market 6. theoretical implications this study's theoretical contributions to academic decision-making during research make it significant. the study investigates the effects on stock return of macroeconomic factors such as inflation, gdp growth, national income, employment rate, and lending interest rate. for analyzing the stock market's performance, previous authors have examined only one or two of inflation, gdp growth, national income, employment rate, and lending interest rate. the present article contributes to the body of knowledge by analyzing the stock market's performance using all of these factors. in addition, this is one of the first attempts to examine the role of the aforementioned macroeconomic factors in the performance of the iraqi stock market. 7. empirical implications this article is vital to emerge economies because it focuses primarily on the stock market's performance. the study provides significant recommendations on how economic policies should be designed to improve the stock market's performance. the study demonstrates that inflationary periods should be favored to increase stock returns and improve stock market performance. this article assists regulators in creating policies regarding the sustainability of the stock market utilizing macroeconomic factors. the study also suggests that the gdp growth rate should be accelerated and maintained to increase the return on the stock. moreover, with effective economic policies, the national income should rise to increase stock returns. it is suggested to economists working on behalf of the nation's welfare that they should work to create employment opportunities for the populace and increase the national employment rate. it will increase the rate of return on stocks and the stock market's performance. it reveals to an economy's policymakers that the lending interest rate must be set appropriately to increase the return on the stock. 8. conclusion this study examined macroeconomic factors' effects on the stock market's performance. iraq's economy was examined to collect empirical data on inflation, gdp growth, national income, employment rate, lending interest rate, and stock returns. inflation, gdp growth, national income, employment rate, and lending interest rate were found to have a positive relationship with stock return. results indicated that during inflationary periods, a company's ability to pay dividends on its stock increases, and a rise in dividend yield improves the stock market's performance. in addition, the results revealed that during periods of accelerating gdp growth, businesses could enhance their operational efficiency and increase their share prices. similarly, when the national income is high, individual businesses can improve their overall performance and increase their stock returns. in addition, the results indicated that an increase in the employment rate increases the production of goods and services and the efficiency of other business operations, thereby boosting stock returns. moreover, according to research findings, an appropriate lending interest rate provided capital for business expansion and increased stock returns. 9. limitations future researchers will need to address the limitations of the present study in their research. this study examines the impact of a limited number of macroeconomic factors, such as inflation, gdp growth, national income, employment rate, and lending interest rate, on stock returns. several additional influencing factors beyond these macroeconomic factors are missing, and the study's scope is narrower. for a more accurate evaluation of stock returns, interested researchers must consider these limitations and add microeconomic variables. this research examines the relationship between inflation, gdp growth, national income, employment rate, lending interest rate, and stock returns concerning the iraqi economy. this limits the validity of the study to a single nation. for more reliable results, researchers must also visit other economies. references al-wattar, y. m. a., almagtome, a. h., & al-shafeay, k. m. 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https://doi.org/10.1111/j.1468-0084.2008.00513.x https://doi.org/10.1111/j.1468-0084.2008.00513.x agbioforum, 23(1): 32-41 ©2021 agbioforum factors affecting the profitability of listed commercial banks in vietnam: does agriculture finance matter? thanh cuong dang vinh university email: dangthanhcuongktdhv@gmail.com https://orcid.org/0000-0001-6749-8729 thi bat nguyen hung vuong university email: batnt@neu.edu.vn https://orcid.org/0000-0001-8048-3230 thi yen nguyen vinh university email: yennguyen1507@gmail.com https://orcid.org/0000-0003-4767-3643 thi hang trinh vinh university email: trinhhang.kt86@gmail.com https://orcid.org/0000-0002-9137-3480 thi thao banh vinh university email: banhthao107@gmail.com https://orcid.org/0000-0002-3896-3318 the aim of this study is to examine the factors affecting the profitability of listed commercial banks in vietnam. the data is collected from balance sheets and income statements (audited financial statements) over the period of five years, spans from 2015 to 2019. the sample consists of 12 commercial banks listed on ho chi minh stock exchange. the findings from the analysis are as follows. first, equity is positively related with bank profitability indicating that higher equity leads to better performance. second, operating cost is inversely related with bank profitability suggesting higher operating can be detrimental to bank performance. finally, agriculture financing is positively and significantly related with bank performance. this indicates that a high share of agricultural finance in the total financing can positively impact the banks’ profitability. the findings have several policy implications which are provided in the last section. the directions for future research are also clearly identified towards the end of the paper. key words: commercial banks, equity, operating expenses, agriculture finance, profitability, vietnam 1. introduction financial institutions, especially in the emerging economies have undergone significant transformation in the last decade or so. the transformation is so apparent that it has become difficult to exaggerate the size and the extent of encouraging changes that had been effective in the price discovery of the financial products. this strong growth, in a sense, is led by easy access to finance conditions in the global financial markets. more importantly, bank lending to the private sector has rose multiple times and this can be attributed to low interest rates and high liquidity. the easy liquidity and access to funds fueled the banking-led growth in many economies, especially emerging economies. in fact, emerging economies benefitted a lot from liquidity as the firms in these countries rely heavily on bank funds due to limited alternative sources of funding. however, the rapid growth led by excessive credit also created the issue of extreme leverage and corporate debt in the economy. the factors mentioned above coupled with frequent business cycles and the fluctuations in the interest rates across the globe have made it mandatory to deeply examine bank profitability especially in the context of emerging markets. the mentioned phenomenon has directly increased the risk level of disbursed loan by the banks. increased level of risk in the bank lending influences the profitability. broadly speaking, this has also led to the probability of an increase in the overall bank instabilities in the economy. these factors have prompted many to assess the factors affecting the level of bank profitability in emerging economies. moreover, given the fact that governments in emerging economies devise policies whereby they require banks to allocate a share of total lending to a preferred sector, it is imperative to investigate how the forced or preferred sector lending contributes to the bank profitability. the study deliberately uses agricultural financing as one of the determinants as vietnam is primarily an agriculture-based economy. though the share of agriculture sector as a contribution to gross domestic contribution (gdp) is decreasing in vietnam, the agriculture sector remains strategically important for the vietnamese economy. it not only contributes significantly to the gdp but also employs a substantial share of the workforce. the interesting fact is that almost 40% of the land in the vietnam is dedicated to agriculture and given the climatic conditions, rice production forms the largest proportion of total agriculture produce. third, as extensively used in the paper, it is also important to test certain key variables as potential determinants of bank profitability of listed commercial banks in vietnam. these potential determinants or factors are agricultural finance, total assets, equity, lending liability, deposit liability, operating cost, and the income diversification. as is the case with previous literature on similar topics, certain macro-economic variables such as economic growth and inflation are also tested and assessed as potential factors in deterring bank profitability in emerging economies. to provide a summary of the arguments presented above, it can be stated that the profitability is one of the most important measures to evaluate not only the financial mailto:dangthanhcuongktdhv@gmail.com https://orcid.org/0000-0001-6749-8729 mailto:batnt@neu.edu.vn https://orcid.org/0000-0001-8048-3230 mailto:yennguyen1507@gmail.com https://orcid.org/0000-0003-4767-3643 mailto:trinhhang.kt86@gmail.com https://orcid.org/0000-0002-9137-3480 mailto:banhthao107@gmail.com https://orcid.org/0000-0002-3896-3318 agbioforum, 23(1), 2021 | 33 dang, nguyen, nguyen, trinh and banh. — factors affecting the profitability of listed commercial banks in vietnam results of commercial banks but to provide an indication of overall banking stability in any economy, especially emerging ones. profitability is an important foundation for banks to innovate in terms of their banking practices, diversify their financial products and services, and conduct business efficiently and effectively. therefore, assessing banks’ profitability as well as influencing factors are not something new in the literature, but the significance of this topic is well-established among researchers, banking managers, industry players and policymakers. in this study, we assess the bank profitability of listed commercial banks in vietnam, an emerging economy in the asean region. the data is collected from the balance sheets and the statement of business results (audited financial statements) of 12 commercial banks listed on ho chi minh stock exchange (hose) for over a period of 5 years which spans from 2015 to 2019. hose is established in july 2000 as a unit of the state securities commission and manages the listed securities trading system of vietnam. hose is the highest standard stock market in vietnam. commercial banks listing on hose are eligible for margin trading, thereby improving their stock liquidity. the transparency and reliability of corporate information disclosed at hose will bring higher credibility to banks. there have been some domestic studies on the profitability of commercial banks in the past but no studies on factors affecting the profitability of listed commercial banks on hose in vietnam. therefore, the study on factors affecting the profitability of listed commercial banks in vietnam is necessary to propose policy implications to improve the profitability of listed commercial banks in the future. findings based on the results from the analysis reveal that the bank profitability in vietnam is affected by various bank level as well as the macro-economic factors. in other words, bank level and macro variables can be used as predictive variables to project profitability of listed commercial banks in vietnam. the key findings of the analysis are as follows: first, the coefficient of equity is positive and significant. the positive relation bank profitability and the equity indicates that higher equity leads to better performance. second, the coefficient of operating cost is negative and highly significant. the results imply that bank profitability and the operating cost is inversely related and hence, suggesting higher operating can be detrimental to bank performance. finally, agriculture financing is positive and significantly related with bank performance. this indicates that high share of agricultural finance in the total financing can positively impact the banks’ profitability. these findings have several policy implications. this research adds to the extant literature in several ways. first, although the existing research focuses on identifying the factors affecting bank profitability, unfortunately most of these empirical academic papers relied on data from the developed markets and there is not enough literature on the ban profitability in emerging markets. by focusing on an emerging market or economy, this paper makes a significant and novel contribution to the literature on the subject. second, this research adds an important variable of agricultural financing as one of the determinants of bank profitability and hence, adds an important dimension of study to the literature. given the fact that vietnam is predominantly an agricultural economy, the inclusion of agricultural financing as one of the determinants in the regression analysis is a key addition to existing literature on bank profitability determinants. third, this research also adds to the literature on the listed banks, especially banks in emerging markets and economies. the current trend in the bank profitability literature fails to differentiate between listed and the unlisted banks. by focusing only on the listed banks, this paper presents findings and develops clear policy implications that can be used by regulators as a basis to devise policies that can not only be more relevant but also prove to be very effective. finally, this research also adds broadly to the literature on bank stability as healthy profits are one of the key predictors of financial stability. in other words, lower profitability can make commercial banks more prone to financial distress and in worst the case, can also lead to bankruptcy. moreover, most of the financial crises have occurred due to lower profit margin and profitability. the findings presented have several implications, especially for emerging markets. for instance, the results indicate that better capitalized banks can be more profitable. this is not surprising as well-capitalized banks are in a better position to select multiple profitable projects. more importantly, better capitalized banks can diversify their portfolios not only in different sectors but can also avail and benefit from other investment opportunities in the market. in other words, banks with healthy equity can diversify into buying securities and by venturing into investment opportunities that is not with interest rates. in this way, they can also generate noninterest income which can be complimentary to their interest income generated through disbursement of loans. second and equally important, the banks in emerging markets with a focus on agriculture sector can take cue from this paper. by showing that the agricultural finance could make banks more profitable, the paper demonstrates that banks can also look to focus on this sector which contributes significantly to gdp. for instance, in countries like india, banks can gain a head start by allocating a certain percentage of their total credit to the agriculture sector. this paper comprises 5 sections including this one. the following section presents the overview of the extant literature on the determinants or the factors that affect bank profitability. in section 3, an overview of the research approach is provided. this is followed by the results and the discussions in section 4. finally, section 5 concludes agbioforum, 23(1), 2021 | 34 dang, nguyen, nguyen, trinh and banh. — factors affecting the profitability of listed commercial banks in vietnam the paper with the implications of the current study. more importantly, this section also provides a clear direction for future research. 2. literature review athanasoglou et al. (2008) have examined the profitability of greek banks from 1985 to 2001. they explored several factors such as banking characteristics, industry characteristics, and macro-economic characteristics on bank profits. the results show that all internal factors, except the bank’s scale, had a statistically significant impact as expected (equity, labor productivity had a positive impact while credit risk and operating costs had a negative impact). the business cycle has a statistically significant impact on bank profits. in other words, bank profits are shown to be procyclical in nature. dietrich et al. (2009) examine how bank-specific characteristics, macroeconomic variables, and industryspecific factors affect the profitability of 453 commercial banks in switzerland over the period from 1999 to 2008. to consider the impacts of the recent financial crisis, the authors separately consider the years before and during the crisis, namely the period up to 2006, and the crisis years 2007 and 2008. the finding based on the return on average assets, indicates that better-capitalized banks seem to be more profitable. while the cost-income ratio is relevant for the return on assets before the crisis only, the negative impact of the loan loss provisions relative to total loans is much stronger during the crisis. in addition, if a bank’s loan volume is growing faster than the market, the impact on bank profitability is positive, at least before the crisis. looking at the effect of the interest income share (the interest income over total income), a variable not considered in previous studies, the authors find that banks with a higher interest income share are less profitable, which holds again for the pre-crisis period only. furthermore, the negative effect of state ownership on bank profitability does not hold any more during the crisis, and the same holds for foreign bank ownership. anbar et al. (2011) explore the influence of internal factors and macro factors that affect the business performance of 10 commercial banks listed on the istanbul stock exchange in turkey in the period from 2002 to 2010. research results show that roa has a positive correlation with the size of total assets and non-interest income index and a negative correlation with bank loans. roe has a positive correlation with bank size and a negative correlation with real interest rates. petria et al. (2015) study the effects of 3 groups of factors: banking intrinsic, industry factors, and macro factors on bank profits for 1098 banks from 27 eu countries from 2004 to 2011. research results indicate that liquidity risk, credit risk, governance efficiency, income diversification, industry concentration/competition, and gdp have an impact on bank profits showing in both variables roaa and roae. there was an interesting finding of the positive effect of competition in the banking industry on profitability. bank size has no effect on roae and a weak effect on roaa. in the context of vietnam, there have been several studies with a variety of research methods when considering the factors affecting profitability. nguyen, v.h. (2008) study 32 vietnamese commercial banks in three groups: state-owned commercial banks, joint-stock commercial banks, and joint-venture banks from 2001 to 2005. by using the marginal efficiency analysis method, the results show that banks which continue to increase their size will experience a decrease in operational efficiency, especially for state-owned commercial banks. however, when using the tobit econometric model, the results indicate that the operational efficiency of commercial banks from 2001 to 2005 increased as total assets increased, whereas the deposit to loan ratio was negative correlated with technical efficiency which means if the bank used well-mobilized capital, it could increase its operational efficiency. the results are similar for the loan to total assets ratio, and the interest income to total income ratio. the equity to total assets ratio has a positive impact on technical efficiency. finally, changing the macro environment as well as changing technology over time have been positively correlated with business performance. trinh, q.t. and nguyen, v.s. (2013) stud factors affecting the performance of commercial banks (through roa, roe ratio) in vietnam by using the tobit regression model based on data of 39 vietnamese commercial banks from 2005 to 2012. the study shows that the total operation cost over revenue was negatively correlated with both roa and roe. the higher the ratio of equity on total assets, the higher the return on total assets, but it reduces the return on equity; the higher the ratio of loan on total assets was, the higher the profit was, the higher the non – performing loan was, and the lower the performance of commercial banks. according to nguyen, t.t.h. (2017), profitability is an important indicator of the bank's existence and sustainable development. this study uses regression analysis to identify the internal factors that affect the roa and roe of commercial banks in vietnam in the period 2006 2015. the results show that loan on total assets ratio, allowance for credit losses to loan, interest expenses to liabilities, and non-interest income to assets have a positive impact on the bank's profitability. meanwhile, npls, operating costs to income ratio, and board size have a negative impact on profitability. the study found that there is no statistically significant evidence about the effects of the variables representing liquidity risk management, capital structure, cost control, and size on the bank's profitability. to exist and develop, commercial banks must operate effectively, therefore, profitability is the top concern. through literature review, measuring to improve profitability is a particularly important and necessary issue for commercial banks. although there have been some studies on the profitability agbioforum, 23(1), 2021 | 35 dang, nguyen, nguyen, trinh and banh. — factors affecting the profitability of listed commercial banks in vietnam of commercial banks, there are currently no studies assessing the impact of factors on the profitability of commercial banks listed on the vietnamese stock market. based on this research gap, the author finds that this topic is practical and of theoretical significance, and the research results are expected to have more bright spots compared to previous studies. 3. research methodology 3.1 research hypothesis zeitun et al. (2014), (pouraghajan et al., 2012) both show their results that enterprise size has a positive and significant impact on business performance. mitchell et al. (1996) reach the same finding with the data from 1986 to 1990 of commercial banks with total assets of $100 million in the us. the results show that large-scale commercial banks are often cost-effective. other researchers like stever (2007) suggest that large commercial banks often have the advantage in diversifying their asset portfolio as well as their operations, while small commercial banks often do not have that advantage, which makes they must try to reach borrowers who have low credit risk or require more collateral. the proposed hypothesis h1 is: h1: the size of total assets (ta) has a positive impact on the profitability of commercial banks. berger (1995) show that raising the equity ratio increases risk tolerance, especially credit risks, thereby, can promote credit growth to earn revenue on higher returns berger (1995). in addition, molyneux, p. (1993) based on the cost perspective demonstrate that raising the equity ratio increases credit ratings, thereby helping commercial banks reduce capital costs. the proposed hypothesis h2 is: h2: equity(e) has a positive impact on the profitability of commercial banks. non-interest income includes revenue from services (money transfer payments, cards, treasury services, custodial banking services, etc.), income from foreign exchange business, trading and investing in securities, venture capital, payment for import and export. the positive results on non-interest income show that promoting non-interest activities leads to higher profitability (chiorazzo et al., 2008), higher operating efficiency (landskroner et al., 2005), or reduction in the overall risk for commercial banks (allen et al., 2000). hughes et al. (2013) argue that large commercial banks have high efficiency of scale because they increasingly know how to optimize costs based on technology and take advantage of costs that do not increase proportionally with scale. this implies the application of information technology to enhance non-traditional activities, and high non-interest income to help large commercial banks become more and more efficient. the increase in total noninterest income represents a higher degree of income diversification, the bank's income does not depend much on the traditional activity of lending. the correlation is expected to be positively related to profitability. the proposed h3 hypothesis is: h3: income diversification (noii) has a positive impact on the profitability of commercial banks. (income diversification is measured by non-interest income nii) operating expenses (operation expenses) is a factor that is deducted from total operating income to form net profit from commercial banks’ activities. a negative relationship between operating costs and profitability of commercial banks is often expected. the proposed h4 hypothesis is: h4: operating cost has a negative impact on the profitability of commercial banks. (operating cost is measured by operating cost on income ratio: oci) vietnam is primarily an agriculture-based economy. though the share of agriculture sector as a contribution to gross domestic contribution (gdp) is decreasing in vietnam, the agriculture remains a strategically important sector for a vietnamese economy. it not only contributes significantly to the gdp but also provides employment opportunities for vietnamese people. the interesting fact is that almost 40% of the land in the vietnam is dedicated to agriculture and given the climatic conditions, rice production forms the largest proportion of total agriculture produce. the proposed h5 hypothesis is: h5: agricultural financing (af) has a positive impact on the profitability of commercial banks. lending ability refers to the ability to use mobilized capital for lending. if banks effectively use their capital, it will increase interest income and increase the banks’ profit. the proposed h6 hypothesis is: h6: lending ability (la) has a positive impact on the profitability of commercial banks. if banks can mobilize capital well, they can limit their ability to borrow from interbank or central banks. as the cost of mobilizing is more active than the cost of borrowing, the banks conduct business more efficiently. the proposed h7 hypothesis is: h7: deposits ability (da) has a positive impact on the profitability of commercial banks business results of commercial banks are often affected by macroeconomic factors. some macroeconomic factors, such as gdp growth rate or inflation rate…, are often considered when assessing their impact on the profitability of commercial banks, (athanasoglou et al., 2008). gdp growth rate is included in the research model as an external factor representing the impact of the socioeconomic environment on bank profitability. high economic growth reflects good business prospects for businesses, including banks. when economic growth is high, the demand for credit and banking services increases, increasing bank profits. the relationship is expected to be positive. the proposed h8 hypothesis is: h8: economic growth (gdp) has a positive impact on the profitability of commercial banks. the inflation rate is measured by the increase in the consumer price index (cpi). the inflation rate is included agbioforum, 23(1), 2021 | 36 dang, nguyen, nguyen, trinh and banh. — factors affecting the profitability of listed commercial banks in vietnam in the model to examine the impact of the socioeconomic environment on profitability. the rate of inflation affects a bank's income and expenses. when inflation is high, banks tend to raise credit lending rates to be higher than deposit rates, increasing profits for banks. therefore, the correlation here is expected to be positive. the proposed h9 hypothesis is: h9: inflation (inf) has a positive impact on the profitability of commercial banks. the profitability measures in previous studies are mainly used as roa (return on asset) and roe (return on equity). kosmidou (2008), abbasoglu et.al (2007) used roa as the dependent variable for profitability. roa shows how banks generate their profit by using management’s ability to utilize banks, real and financial investment (hassan et al., 2003). furthermore, roa is a good measure of profitability which is not much affected by high equity multipliers and banks can earn the maximum return on their asset portfolio (rivard et al., 1997). on the other hand, roe represents bank efficient management in utilizing its shareholder’s investment. hassan et al. (2003) suggest that most banks increase their roe by getting more financially leverage to competitive levels. within the context of the above arguments, this study uses both roa and roe for profitability measures of vietnamese commercial banks listed on hose. 3.2 research models the proposed research models are as follows: model 1: roa and factors roat = α0 + α1tat + α2et + α3noiit + α4ocit + α5aft + α6lat + α7dat + α8gdpt + α9inft + u (1) model 2: roe and factors roet = β0 + β1tat + β2et + β3noiit + β4ocit + β5aft + β6lat + β7dat + β8gdpt + β9inft + u (2) 3.3 research data the data in this study is collected from secondary sources for 12 commercial banks listed on hose. the data covers a period of 5 years which spans from 2015 to 2019. specifically, data used in this study is sourced from the balance sheet and the statement of business results (audited financial statements) the authors have collected a time series of 60 observations of 12 commercial banks to ensure the requirements in time series analysis (minimum 30 observations). the data collected will be encoded, examined, and processed by eviews 10. a description of how to collect the variables is shown in table 1 of the appendix. 4. research results 4.1 descriptive statistics table 1 shows the descriptive statistics. descriptive statistics of our measures of bank profitability and determinants of the bank’s profitability show that the average roa of the vietnamese commercial bank is 0.009670. the roa values range from 0.000234 to 0.025222, with a low standard deviation of 0.006144, which implies a weak variability in bank profitability. the roe value ranges from 0.003404 to 0.243609, with the higher standard deviation of 0.061546. the values of two independent variables, namely ta and gdp have a high deviation of 3.88e+08 and 6.43e+14, respectively while the remaining variables’ standard deviation is lower, fluctuating from 0.010718 to 0.124217. table 1: descriptive statistics variable mean median maximum minimum variance return on asset (roa) 0.009670 0.007648 0.025222 0.000234 0.006144 return on equity (roe) 0.126819 0.127383 0.243609 0.003404 0.061546 total asset (ta) 4.23e+08 2.35e+08 1.45e+08 76220834 3.88e+08 agriculture financing (af) 0.1974333 0.192769 0.239876 0.1286363 0.139474 equity on total asset (e) 0.075999 0.071974 0.152673 0.037844 0.022731 lending ability (la) 0.602614 0.591410 0.742721 0.367061 0.079731 deposits ability (da) 0.921242 0.928026 0.962156 0.705754 0.035632 operating cost on income (oci) 0.477193 0.442155 0.876323 0.253774 0.124217 income diversification (non–interest income noii) 0.220897 0.222566 0.457295 -0.163389 0.116172 economic growth (gdp) 5.03e+15 5.01e+15 5.92e+15 4.19e+15 6.43e+14 inflation (inf) 0.026180 0.027300 0.035400 0.006300 0.010718 correlation coefficients between variables represent linear dependence between variables. the coefficients are presented in table 2. the correlation coefficient is 1 in the case of the covariance linear correlation and -1 in the case of the inverse linear correlation. the closer the correlation coefficient is to -1 and 1, the greater the correlation between the variables are. the correlation matrix is shown in table 2. it shows that most of the variables do not have a strong correlation with other variables. however, the pair of variables r (gdp, inf) = 0.645560 has a quite strong correlation. therefore, multicollinearity may be a problem with the regression model. we run the regression model and test its diagnostics in the next tables. agbioforum, 23(1), 2021 | 37 dang, nguyen, nguyen, trinh and banh. — factors affecting the profitability of listed commercial banks in vietnam table 2: matrix of correlation coefficients between variables ta e af la da oci noii gdp inf ta 1.000000 e -0.490062 1.000000 af 0.337320 -0.068176 1.000000 la 0.491029 -0.230129 0.082289 1.000000 da 0.320978 -0.822373 0.210933 0.336112 1.000000 oci -0.355188 -0.123970 -0.632726 0.031480 0.175786 1.000000 noii 0.074530 0.240077 0.475221 -0.044145 -0.249635 -0.216974 1.000000 gdp 0.206505 0.104079 0.073797 0.324151 -0.128135 -0.239620 0.291965 1.000000 inf 0.147464 -0.060057 -0.235561 0.197448 -0.029317 -0.142876 0.313698 0.645560 1.000000 4.2 regression results to examine the impact of the independent variables on the overall bank profitability, the study runs the regression model with nine independent variables and two dependent variables (roa and roe), which correspond to two models. the results are shown below in table 3. table 3 : results of the regression models independent variables model 1 (roa) model 2 (roe) constant (c) -0.006365 0.034744 total asset (ta) -2.59e-12 -3.47e-11* equity on total asset (e) 0.102916*** -0.375824 agricultural finance (af) 0.353882*** 0.5294649*** lending ability (la) -0.011334* -0.102658 deposits ability (da) 0.014952 0.215921 operating cost on income (oci) -0.030023*** -0.386976*** income diversification (noii) -0.001251 -0.001983 economic growth (gdp) 2.59e-18*** 3.35e-17*** inflation (inf) 0.053522 0.554001 r-squared 0.800468 0.757811 adjust r-squared 0.769169 0.719821 prob (f-statistic) 0.000000 0.000000 note: statistically significant at * 10%, ** 5%, *** 1% model 1 with the dependent variable is roa. three variables e (equity), af (agricultural finance), oci (operating costs), gdp (economic growth) are strongly correlated with the roa at a significance level of 1%; la (lending ability) has a strong correlation with roa at a significance level of 10%. in specific, variable e has a positive relationship with roa. if e increases (decreases) by 1%, roa will increase (decrease) 0.102916% at a significant level of 1%. variable af has a positive relationship with roa. if af increases (decreases) by 1%, roa will increase (decrease) 0.353882% at a significant level of 1%. variable la has a negative relationship with roa. if la increases (decreases) by 1%, roa will decrease (increase) by 0.011334% at a significant level of 10%. variable oci has a negative relationship with roa. if oci increases (decreases) by 1%, roa will decrease (increase) by 0.030023% at a significant level of 1%. variable gdp has a positive relationship with roa. if gdp increases (decreases) by 1%, roa will increase (decrease) 2.59e-18% at a significant level of 1%. the other independent variables namely c, ta, da, noii having p-value is higher than 0.05, therefore, these variables are not statistically significant. r-squared is 0.800468 so the regression model can explain 80.05% of the change of the dependent variable. for the explanatory model, the fit of this model is very high. pro (f-statistic) is 0.00000, less than 0.05, so the regression model is statistically significant. model 2 with the dependent variable is roe. three variables ta (total asset), af (agricultural finance), oci (operating costs), gdp (economic growth) are strongly correlated with the roe at a significance level of 10%, 1%, 1%, and 1% respectively. variable ta has a negative relationship with roe. if ta increases (decreases) by 1%, roe will decrease (increase) 3.47e-11 % at a significant level of 10%. variable af has a positive relationship with roe. if af increases (decreases) by 1%, roe will increase (decrease) 0.5294649% at a significant level of 1%. variable oci has a negative relationship with roe. if oci increases (decreases) by 1%, roe will decrease (increase) 0.386976% at a significant level of 1%. variable gdp has a positive relationship with roe. if gdp increases (decreases) by 1%, roe will increase (decrease) 3.35e-17% at a significant level of 1%. the other independent variables namely c, e, la, da, noii and inf having p-value is higher than 0.05, therefore these variables are not statistically significant. r-squared is 0.757811 so the regression model can explain 75.78 % of the change of the dependent variable, which is lower than r-squared of model i. agbioforum, 23(1), 2021 | 38 dang, nguyen, nguyen, trinh and banh. — factors affecting the profitability of listed commercial banks in vietnam pro (f-statistic) is 0.00000, less than 0.05, so the regression model is statistically significant. use akaike (aic) and schwartz (sc) information criteria: table 4: aic and sc values of two models model 1 model 2 akaike (aic) -8.675318 -3.872923 schwarz (sc) -8.361167 -3.558772 aic and sc in model 1 are lower than them in model 2 we can see that models 1 and 2 are statistically significant and explain 80.05% and 75.78% of the changes of the dependent variable, respectively. r-squared and adjust rsquared show the strength of model 1 compared to model 2. besides, aic and sc in model 1 are lower than them in model 2 as reported in table 4. so, we choose model 1 as the model explaining the factors affecting the profitability of vietnamese commercial banks listed on hose. 4.3 model test table 5: the result of regression model roa coefficient constant (c) -0.006365 total asset (ta) -2.59e-12 equity on total asset (e) 0.102916*** lending ability (la) -0.011334* agricultural financing (af) 0.353882*** deposits ability (da) 0.014952 operating cost on income (oci) -0.030023*** income diversification (noii) -0.001251 economic growth (gdp) 2.59e-18*** inflation (inf) 0.053522 r-squared 0.800468 adjust r-squared 0.769169 prob (f-statistic) 0.000000 note: statistically significant at * 10%, ** 5%, *** 1% 4.4 test the appropriateness of the regression model table 5 shows the results of regression. the model has 3 independent variables with statistical significance, namely e, af, oci, and gdp at the 1% significance level: la at the 10% significance level. p-values of the other variables such as variables c, ta, da, noii, inf are higher than 0.05, so these independent variables are not statistically significant, so we doubt the model is redundant. we used the wald test to check the appropriateness of the model: variables c, ta, da, noii, inf have prob greater than 0.05. the coefficients are so large that the corresponding coefficients c(1), c(2), c(5), c(7), c(9) may be zero. therefore, the hypothesis is as follows: h0: c(1) = c(2) = c(6) = c(8) = c(10) = 0 h1: there is any of c(1), c(2), c(6), c(8), c(10) # 0 table 6: wald test result equation: untitled test statistic value df probability f-statistic 1.510975 (5, 51) 0.2029 chi-square 7.554875 5 0.1825 in table 6, wald test results show that p-value = 0.2029> 0.05, therefore, we reject the hypothesis h1, and accept hypothesis h0. we remove the variables ta, da, noii, inf from the model table 7: regression result after removing the variable ta, da, noii, inf dependent variable: roa coefficient equity (e) 0.112093*** agricultural finance (af) 0.715383*** lending ability (la) -0.012058*** operating cost on income (oci) -0.024473*** economic growth (gdp) 3.98e-18*** r-squared 0.770911 adjust r-squared 0.758638 prob (f-statistic) 0.00000 note: statistically significant at * 10%, ** 5%, *** 1% conclusion: based on the results presented in table 7, the probability coefficients of e, af, la, oci, and gdp are all <0.01. so the above coefficients are 99% significant. lending capacity (la), operating cost (oci) are negatively correlated with roa; equity (e), agricultural finance (af), economic growth (gdp) have positively correlated with roa of vietnamese commercial banks. p-value (f-statistic) is 0.000000 <0.05 so regression model is statistically significant. and this regression model explains 77.09% of the change of the dependent variable. 4.5 model’s defect test • multi-collinearity table 8: correlation coefficient matrix correlation roa e la oci gdp af roa 1.000000 e 0.531469 1.000000 la -0.186560 -0.230129 1.000000 oci -0.678654 -0.123970 0.031480 1.000000 gdp 0.471895 0.104079 0.324151 -0.239620 1.000000 af 0.499912 -0.068176 0.082289 -0.632726 0.073797 1.000000 based on the correlation coefficient matrix shown in table 8, we realize that the pairs of variables understudy have relatively low correlation coefficients, so it is unlikely that the model does not have multi-collinearity. we used the rule of thumb principle to test multi-collinearity problem. the result is showed in table 9. agbioforum, 23(1), 2021 | 39 dang, nguyen, nguyen, trinh and banh. — factors affecting the profitability of listed commercial banks in vietnam table 9: r-squared of sub-models model original model r-squared ls roa e af la oci gdp r2= 0.7709 submodels r-squared 1 ls e af roa la oci gdp r2 = 0.4071 2 ls af e roa la oci gdp r2 = 0.4399 3 ls la af roa e oci gdp r2 = 0.0422 4 ls oci af roa e la gdp r2 = 0.4753 5 ls gdp af roa e la oci r2 = 0.4037 we found that the r-squared of the sub-regression models is less than that of the original regression, so the model does not have multi-collinearity defects. • heteroskedasticity test using white test to check with the hypothesis: h0: model has heteroskedasticity h1: model doesn’t have heteroskedasticity the result of table 10 shows that prob (f-statistic) = 0.9982 > 0.05. therefore, the hypothesis h0 is rejected, and the hypothesis h1 is accepted. in other words, the model does not have heteroskedasticity problem. table 10: white test result panel period heteroskedasticity lr test null hypothesis: residuals are homoscedastic equation: untitled specification: roa e la oci gdp value df probability likelihood ratio 2.494264 12 0.9982 lr test summary: value df restricted logl 265.1154 56 unrestricted logl 266.3625 56 • autocorrelation test using serial correlation lm test with the hypothesis: h0: model has autocorrelation h1: model doesn’t have autocorrelation table 11: serial correlation lm test result breusch-godfrey serial correlation lm test: f-statistic 10.66958 prob. f (2,143) 0.0000 obs*r-squared 19.32673 prob. chi-square (2) 0.0001 the result of table 11 shows that prob (f-statistic) = 0.0000 < 0.05 reject h1, accept h0. model has autocorrelation problem. we use the ar (p) to overcome the autocorrelation defect by adding the variable ar (1) directly into the command prompt. we have result as follows: table 12: regression model after fixing defects dependent variable: roa coefficient equity (e) 0.122809*** agricultural finance (af) 0.692817*** lending ability (la) 0.007199 operating cost on income (oci) -0.013553*** economic growth (gdp) 1.31e-18 ar(1) 0.812398*** r-squared 0.878936 adjust r-squared 0.867674 durbin-watson statistic 1.527018 prob (f-statistic) 0.00000 note: statistically significant at * 10%, ** 5%, *** 1% after re-testing the model, the study has found two independent variables which affect the profitability of vietnamese listed commercial banks on hose. only four variables e, af and oci have an impact on roa as the original authors’ expectation, the other variables have no impact. this impact is shown as follows: e increases by 1%, profitability of commercial banks increases by 0.1228% while increase in 1% of af leads to 0.6928% increase in roa. finally, if oci increases by 1%, profitability of commercial banks decreases by 0.0135%. the impact of e is greater than oci on profitability. adjust r-squared of the model is 0.867674, so the regression model can explain 86.76 % of the change of the dependent variable. this result is consistent with the result of athanasoglou et al. (2008), nguyen, v.h. (2008), trinh, q.t and nguyen, v.s (2013), nguyen, t.t.h (2017). however, this result is inconsistent with dietrich et al. (2009) when studying determinants of the profitability of the commercial banks in switzerland over the period from 1999 to 2008. dietrich et al. (2009) conclude that the cost-income ratio is relevant for the return on assets before the crisis only. the difference in the research result may be due to differences in the rate of development of the banking system across countries. 5. conclusion and policy implications the main aim of this research is to predict bank profitability of listed banks in vietnam for 12 commercial banks from 2015 to 2019. the research conducted in this paper shows that there are three main determinants of bank profitability of commercial banks in vietnam, namely equity, agriculture financing, and the operating cost. the results suggest that the equity and the agriculture financing positively impacts roa. the operating costs variable has a negative impact on the bank profitability measure of roa. based on the study results, we highlight certain policy implications with a view to improve the profitability of commercial banks listed on hose in vietnam. in the next 5 years, commercial banks in vietnam are required to increase equity in compliance with the current regulations of the state bank of vietnam in circular 22/2019 / ttnhnn to meet the minimum car requirement according to basel ii. therefore, increasing equity and equity agbioforum, 23(1), 2021 | 40 dang, nguyen, nguyen, trinh and banh. — factors affecting the profitability of listed commercial banks in vietnam management are the goals which each bank has placed as a top priority for stable and sustainable development. to increase equity, commercial banks listed on hose must weigh both, the advantages and disadvantages when raising equity through retained earnings or issuing new stocks or issuing debt through either bonds or debentures based on their financial status. the operating cost of commercial banks is highly varied. most of the operating cost is the deposit interest, which is hard to cut down, so it is necessary to determine the expenses accurately and manage them effectively. to manage operating costs effectively, the banks can: (1) implement the assignment of revenue and expenditure targets to each department; (2) taking form of the awareness of saving costs from employees; (3) build relationships between employees and managers; (4) encourage employees to be involved in operating cost management, motivating them to make suggestions to reduce costs and respect employees' proposals, and provide an appropriate reward for effective proposals and feedbacks for ineffective proposals. finally, the results indicate that agricultural financing can be a stable source of income for banks and, hence improving the overall facility. as only a limited number of banks are willing to provide agricultural financing facilities to the farmers, it is a good opportunity for banks to employ experts in the sector so that the good financial due diligence can be done to approve or disapprove the financing request of agricultural projects. by stashing a department with agriculture experts, banks can gain the advantage and benefit from this hugely profitable sector. it bears to note that the agricultural sector is probably the only sector which is relatively immune to crises. in other words, people would not stop eating irrespective of how severe the crisis is and hence gaining expertise can help banks to unlock huge profits. in addition to the implications highlighted above, several proposed support solutions are as follows: modernizing banking technology, building sales strategy, diversifying products, and services towards improving communication service quality and developing modern services, establishing a capital department, standardizing credit processes, and adopting a flexible credit policy, improving management capacity, and improving staff quality. in this paper, we made use of aggregate agricultural financing of total financing as one of the explanatory variables, but it is unclear as to which crops are more profitable as compared to others. in future research, scholars can delve deeper by looking at the disaggregate of the agricultural finance. for instance, disaggregating data into specific financing crop type can reveal the profitable ones and highlight the ones not profitable as well as those which are under losses. moreover, this research has utilized roa and roe as performance measures. as an extension of this research, future research can use market-based measure of tobin’s q as a measure of performance as accounting measures of roa and roe are more prone to manipulation compared to market-based measure of tobin’s q. references allen, l., & jagtiani, j. 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(2014). capital structure and corporate performance: evidence from jordan. australasian accounting business & finance journal, forthcoming, 1(4), 40-61. https://doi.org/10.1007/s10693-005-6411-6 https://doi.org/10.1016/0167-2681(88)90071-6 https://doi.org/10.1016/0167-2681(88)90071-6 https://doi.org/10.2307/2078022 https://doi.org/10.1016/s2212-5671(15)00104-5 https://doi.org/10.1016/s2212-5671(15)00104-5 https://www.ijbcnet.com/1-9/ijbc-12-1915.pdf https://www.ijbcnet.com/1-9/ijbc-12-1915.pdf https://doi.org/10.1016/s0148-6195(96)00041-0 https://doi.org/10.1016/s0148-6195(96)00041-0 https://doi.org/10.1016/j.intfin.2015.09.003 agbioforum, 24 (1): 83-94. ©2022 agbioforum the government policy on the organic rice farming groups embracing sustainable agricultural production: evidence in thailand agbioforum, 24(1), 2022 | 2 panyasing, yongvanit, purnomo and tham. — the government policy on the organic rice farming groups embracing sustainable…. somnuek panyasing department of public administration, faculty of humanities and social sciences, khon kaen university, thailand sekson yongvanit department of public administration, faculty of humanities and social sciences, khon kaen university, thailand email: sekyon@kku.ac.th (corresponding author) eko priyo purnomo department of government affairs and administration, jusuf kalla school of government, universitas muhammadiyah yogyakarta, indonesia sukanya aim im tham department of public administration, faculty of humanities and social sciences, khon kaen university, thailand implementing an organic farming policy at the national level significantly drives and fosters sustainable agricultural production. however, it also creates crucial problems in promoting and sustaining organic rice farming groups at the provincial level. the mentioned case studies of certified organic rice groups indicate great potential, which can be enriched from organic rice farming by embracing environmentally friendly production. they produce high-quality organic rice, which can be certified to international standards. this article aims to illustrate the government policy and how it can be compatible with provincial policy and strategies relating to organic rice farming groups. the government policies related to a large-scale farming model are one million rai (160,000 hectares) of organic rice production. however, there is a discontinuity in the policy, which affects the strengthening and potential of the rice groups as the organic rice farming model of the country. key words: government policy, organic rice farming groups, sustainable agricultural production introduction many countries in the asia region continue to rely on agricultural products as a primary source of income for the farmers who comprise the majority of the population in their countries (kerdsriseam & suwanmaneepong, 2015; saengchaia, mitprasartb, & jermsittiparsertc, 2019; somjai, chankoson, & jermsittiparsert, 2020). regarding rice production, india, vietnam, and thailand are the top three exporting nations in the world (worldwide; us department of agriculture; 2021/2022). in addition, the authorities and civil society organizations in asean nations have enacted more concrete policies, over the last decade, toward promoting sustainable agricultural production to encourage and support sustainable agricultural practices. these countries include indonesia, the philippines, vietnam, and thailand. these policies are advantageous to the health of farmers, consumers, and the environment and promote an understanding of climate change and sustainable development goals. for a comparison of the agricultural practices of thailand and vietnam, thailand has a total agricultural area of 160,802 hectares. the organic farming area, as a percentage of the total agricultural area, is 0.7 percent, while the number of organic producers is 96,673, and they export to the eu and usa a total of 39,673 metric tons [mt]. vietnam has a total agricultural area of 63,536 hectares. the organic farming area, as a percentage of the total agricultural area, is 0.5 percent. the number of organic producers is 17,174, who export to the eu and usa a total of 14,109 metric tons [mt]. (research institute of organic agriculture fibl and ifoam, 2022). in addition, the statistics on organic agriculture and world food for the year 2021 indicate that thailand's share of land under organic agriculture, as a percentage of total agricultural land, increased during the period 2005 to 2019, as follows: 0.1 (2005), 0.2 (2010), 0.2 (2014), 0.2 (2015), 0.3 (2016), 0.4 (2017), 0.4 (2018), and 0.9 (2019) hérique and faysse (2021) in thailand, rice is an agricultural product which government organizations, ngos and organic farming groups cooperate in the development of the production process to achieve good agriculture practices (gap). the high quality of organic rice production is certified by foreign certification bodies or the organic agriculture certification thailand (act), a non-profit foundation. the rice department and department of agricultural extension under the ministry of agriculture and cooperatives are also developing and promoting new varieties of healthy rice incorporating certified organic rice for international export. consumer groups are increasingly becoming health aware (kerdsriseam & suwanmaneepong, 2015; raynolds, 2004; scialabba, 2000). from 2004 to 2016, thailand observed a change in the amount of land used for certified organic rice growing compared to the total area used to cultivate all other certified organic crops. the data is displayed in the graph below (hérique & faysse, 2021). the overview of thai government policies related to sustainable agriculture is as follows: before 2006, the thai government did not have any specific policies and programs regarding organic agriculture. there were several 'piece-'meal' projects and programs that would typically last just that would last for a year or two. the first large-scale project was the pilot project on sustainable agriculture for small-scale producers. the government approved a budget of us$ 15.8 million (633 million baht) to support the sustainable agriculture ' 'foundation's 3-year program to strengthen and improve the sustainable agriculture development of 3,500 families. another notable project was the national ' 'agenda's organic agriculture scheme, which was approved in october 2005. this 5-year program aimed to support 4.25 million farmers using organic inputs to replace agro-chemicals. it covered an area of 13.6 million ha, reduced total agro-chemical imports by 50%, and boosted organic exports by 100% annually(raynolds, 2004; shiferaw, okello, & reddy, 2009; yanakittkul & aungvaravong, 2020). figure 1: changes in the amount of land used to grow certified organic rice (blue curve) compared with land used to grow all certified organic crops (orange curve) in (kerdsriseam & suwanmaneepong, 2015) a more comprehensive program to promote organic agriculture and businesses began in 2007 with the appointment of the national organic development strategic committee. this comprised representatives from relevant government agencies, some from the private sector, and farmers. the committee, with support from the national economic and social development board, was tasked to draft the national organic development strategic plan. approved by the cabinet in early 2008, the first strategic plan (2008 – 2011) consisted of 4 main development strategies, i.e., strengthening knowledge and innovation, traditional organic farming, developing commercial organic agriculture, and management and coordination in moving forward with organic agriculture development. once the first strategic plan was approved, a corresponding national organic development action plan was developed by several agencies within the ministry of agriculture and cooperatives, ministry of industry, ministry of commerce, and the nesdb. the plan was to spend 4,826.80 million baht (usd 145.56 million) on 104 projects during the next four years. this action plan was also quickly approved by the cabinet (kerdnoi, prabudhanitisarn, sangawongse, prapamontol, & santasup, 2014; little, skladany, & rode, 1987; meenan, coronado, petrik, & green, 2019). before the closing of the first strategic and the action plan in 2011, the cabinet decided to change the secretary of the national organic development strategic committee to the office of agricultural economics, ministry of agriculture and cooperatives. since then, they have been responsible for drafting the second strategic plan. there were also concerns about the effectiveness of the projects implemented by the government agencies under the first national organic development action plan. for instance, the study by green net (panyakul, 2013) reviewing a total of 1.75 million farmers trained by government agencies under the plan (or approximate 34% of farming families in thailand) and the report by the land development department shows that 2.55 million farmers had been trained in the use of organic fertilizers to replace chemical fertilizers. however, the statics show that the import of chemical fertilizers continued to increase from 5.172 million tons in 2010 to 5.579 and 5.583 million tons in 2011 and 2012. (meenan et al., 2019) further to the government policy on organic rice production, there was a continuation of the 2008-2011 national organic agriculture development strategic plan no.1. this plan aimed to enhance both the farmers' and consumers' quality of life through food security, revenue generation, and farmer poverty reduction (board & d, 2008; suwanmaneepong, kerdsriserm, lepcha, cavite, & llones, 2020). consequently, agricultural production practices have shifted toward more environmentally friendly, resulting in sustainable development and increasing the competitiveness of organic agricultural products. furthermore, strengthening the network and connecting the entire system assists in developing thailand into a regional production center for organic agricultural products (jones & pimdee, 2017). in 2017, the cabinet approved the national organic agriculture development strategy no.2 for 2017-2021. the goal was to expand the area and production of organic products to increase the level of organic trade and consumption within the country (raynolds, 2004). it aims to provide certified organic products that adhere to domestic and international consumer standards. moreover, it was hoped to establish thailand as a global center for organic agricultural products and services and foster knowledge and innovation relating to organic agriculture, which would achieve global acceptance. in 2019, a workshop was held to discuss a review of the national organic agriculture strategy no.2 and the requirements for planning an organic agriculture action plan consistent with the 20-year national strategy (2017-2036) (laohaudomchok et al., 2020) . top of form bottom of form previous government policies were aimed at moving towards safe agriculture (good agriculture practice: gap) and organic farming zf, yunsheng, and shedeed (2018), which included a policy for large-scale farming promotion in 2016 (chen, jaenicke, yan, tian, & nayga, 2021). later, during 2017-2021, the government implemented a policy promoting organic agriculture sudrajat, rahayu, and supriyadi (2018) to achieve a total area of one million rai of organic rice production. the ministry of agriculture and cooperatives implemented numerous measures and projects, in collaboration with the ministry of commerce, to promote products and improve the quality of organic rice and its marketing to meet the standard of 'organic 'thailand.' this required quality promotion, preparation, and production by the thai farmers that would adhere to international organic standards (kaeomuangmoon et al., 2019). literature review this scoping review synthesizes the literature on government policy in sustainable agriculture and production, organic rice farming production, and the promotion of organic rice farming as follows: kerdnoi et al. (2014) found that the agrochemical-based commercial rice regime had become a dominant socio-technical regime comprising; interwoven power of commercialized agro-businesses, markets, industry, technology, and thai cultural dimensions. furthermore, as government policy responded to the increasing landscape changes, it simultaneously created barriers to organic rice production. the development of organic rice as a niche experiment was partly due to landscape changes and ngos, farmers, and academic leaders often reacting to the negative impacts of agrochemical-based commercial rice. this in-depth study has found that if intensive promotion is applied, organic rice could become quite successful in production and marketing. its expansion has been minimal due to government regulations and policies and low business support. therefore, there have been limitations in the up-scaling of such experiments. thus more serious attempts are needed to overcome resistance from the dominant regimes rather than focusing on the farm level. additionally shiferaw et al. (2009) stated government assistance in support and enabling policies is required to encourage smallholder producers to adopt organic agriculture. allowing smallholder farmers to practice organic agriculture alone may jeopardize their livelihoods, reducing their motivation to pursue this path. as a result, the local government's role is to mitigate the risks faced by smallholder producers. local governments are interested in promoting organic agriculture to meet the required development goals of health, nutrition, poverty alleviation, and sustainability (dhiman, 2020; phoochinda, 2018). furthermore, the local governments may exercise their authority to ensure that incentives for organic agriculture adoption exist. elmore (1979) described how numerous governments had implemented development and problem-solving policies over time but were frequently inconsistent. specific government actions have created more problems than they solve, as they are unsustainable and politically motivated. this has harmed the country's economy, lowered the price of rice, and eventually escalated into political conflict. administrations attempted to increase organic rice production but encountered difficulties with investment capital and the market. consequently, consumers assumed organic rice was more expensive than rice grown with chemicals. additionally, organic rice production requires commitment, vigilance, and knowledge of homemade or purchased bio-fertilizers. most rice farmers used chemicals, indicating they were quick, easy, and convenient. this increased their work efficiency and enabled them to compete with their peers in the same market. there were greater returns, but there were also higher costs. according to sudrajat et al. (2018), institutional influence is critical for developing organic rice farming, particularly for developing science by researchers. research on the efficiency of organic rice farming, in conjunction with agribusiness and rural economic development, is of particular interest (adenle, manning, & azadi, 2017). the government must provide facilities and infrastructure to support the growth of organic agriculture, particularly in terms of the costs incurred by farmers. the government may assist smallholders or peasants in achieving economic independence while improving their welfare and living standards through policies that benefit them. (yanakittkul & aungvaravong, 2020) also argued that government policy support is adequate when it addresses small-scale farmers lacking farming knowledge, equipment, technology, and financial resources. organic farming is critical for smallholder farmers. therefore, the farmers need awareness of the issues as follows: government policy should support 1) irrigation efforts for organic rice farming, e.g., digging ponds, wells, and pumping stations, 2) certification of prices for organic rice, 3) organic rice exports, 4) production equipment acquisition, e.g., seed, organic fertilizer, and organic rice mills, 5) low-interest loans for organic rice farmers; 6) assistance for farmers to certify organic rice standards, and 7) cultivation knowledge and techniques to increase the productivity of organic rice farming. finally, if farmers evaluate government policy's support as favorable toward organic rice, they will endeavor to pursue it. akram‐lodhi (2005) found that at present, vietnam's agriculture has great potential, and the country can be enriched by it. however, wastage and losses in agriculture are still too high in processing, harvesting, and preserving. mechanization levels are still not high, lower than in thailand, so agricultural labor productivity is depressed. over the past years, ' 'vietnam's agriculture has significantly contributed to the development of the ' 'nation’s economy (purnomo, ramdani, agustiyara, tomaro, & samidjo, 2019; purnomo, ramdani, salsabila, & choi, 2020). however, to achieve higher goals over the next decade, vietnam's agriculture must leverage its strengths, including fully implementing land policies in agriculture; developing high-quality human resources; developing credible agriculture that is clean, safe, high-quality, and organic; and protecting the natural environment, including land, climate, weather, and hydrology. while studying organic rice farming promotion in thailand, hérique and faysse (2021) analyzed a 4-year program promoting organic farming in thailand in 2017. the program was aimed at converting 160,000 ha to the production of certified organic rice, representing a five-fold increase. the training was provided, along with subsidies to farmers and applications for certification that was free of charge. the process through which farmers collectively shifted to organic farming involved requirements that were generally accessible to them. in terms of the land area registered in the program, the objective was rapidly reached. however, the program used a national standard that is not widely accepted abroad. there were weaknesses in the inspections made as part of the certification process, and the price premium received by farmers was lower than initially expected. farmers who considered profitability important received no support in obtaining certificates from other organic standards agencies, which could help them obtain higher premium prices. whether these farmers will continue to practice organic farming once the program ends are thus questionable. research methodology this study used qualitative research methods to understand better thai government policies in driving and fostering sustainable agricultural production. the four case studies were selected as study areas of certified organic rice farming groups in yasothon province, thailand. in-depth interviews were used with the head of government officers of the provincial agriculture and cooperatives administration, provincial commercial administration, and other resource persons, including the rice mill business sector and non-government organizations. the primary data were collected from four organic rice farming group members using semi-structured interviews and participant observation. a focus group was used to explore the opinions and concerns of certified organic rice farming group committee members regarding the government policies on organic rice farming. in addition, it was necessary to conduct a secondary data review and other online data to bolster the research findings. therefore, this study examined the government policies related to a large-scale farming model and one million rai (160,000 hectares) of organic rice production. the four certified organic rice farming groups consisted of na so, kut chum district, the farmers group of bak ruea, maha chana chai district, nam om community enterprise network, kho wang district, and ban non-sai ngam community enterprise group, mueang district. figure 2: the study areas of four certified organic rice farming groups, yasothon, thailand research results implementation of critical government policies affecting organic rice farming large-scale farming promotion policy since 2015, the rice department, under the ministry of agriculture and cooperatives, has been the primary agency responsible for promoting large-scale farming. the primary objective of this policy is to encourage farmers to collaborate in agriculture and manage themselves cooperatively by combining their production and distribution. this strategy enables member farmers to lower production costs and increase their per-rai productivity. included in this is the incorporation of agricultural technology into the farming process. consequently, agricultural machinery has been critical in assisting farmers in resolving the issue of the sector's shortage of labor. due to the majority of the agriculture sector labor force being elderly, production management costs are high. however, another significant issue is that agricultural machines are frequently costly, so the farmers merged to manage their large-scale agricultural production. this was regularly and continuously encouraged by the government, for example, through the assistance of the rice research center, the provincial agriculture and cooperatives administration, provincial commercial administration, and other agencies. there is also support from the government's large-scale farming promotion policy for providing technically advanced agricultural machinery and equipment. this research discovered that one of the organic farming groups targeted was encouraged to acquire agricultural machinery in the form of combine harvesters. this was possible as the group has a large membership, having previously been merged with another group, so they can manage by collecting service fees from members. consequently, they can handle the expenses associated with consumables, such as fuel, machine maintenance, and wages for harvesting truck drivers. however, a small group of members still have production equipment. they do not wish to bear the burden of managing large machines, both now and in the future, due to fears concerning hidden costs associated with maintaining those machines. the farmers in this group continue to harvest their crops with the assistance of their family members or by employing contract harvesters. only manual labor is required for the farmers wishing to use a field as a seed collection plot. in summary, the government policy on large-scale farming promotion benefits those farmers wishing to collaborate in large-scale organic farming groups. group members would agree to accept assistance for agricultural machinery to resolve production management issues, most notably labor shortages, in exchange for bearing a portion of the combined harvester's operating costs. the government made no financial contribution to the policy regarding large plots. additionally, on-farm data gathering by the responsible governmental units is used solely to determine academic support for farm management and to procure agricultural machinery. the farm management advice aims to improve farming 'groups' production efficiency and competitiveness by reducing production costs, increasing yields, and aligning environmentally friendly production with market demand. the government policy to achieve one million rai (160,000 hectares) of organic rice production additionally, known as the "policy to promote organic rice production of 1 million rai within three years (2017-2021)," the policy's objective was to encourage farmer groups to produce organic rice following the ministry of agriculture and cooperatives' standards. by 2021, the goal is to promote organic rice production by farmers on a 1 million rai scale. the following schedule was established by dividing the target area for promoting new organic rice production into annual segments. in the first year, 2017, 300,000 rai were allocated, followed by 300,000 rai in the second year, 2018, and 400,000 rai in the third year, 2019. compensation for participating farmers' income was used to implement the policy. there was a subsidy to compensate farmers for lower yields during the initial stages of their organic rice production, which would run continuously for three years, with compensation capped at 15 rai per person. farmers who passed the preparation assessment (t1) received 2,000 baht per rai, farmers who passed the adjustment period assessment (t2) received 3,000 baht per rai, and farmers who met the organic rice production standard (t3) received 4,000 baht per rai (little et al., 1987). the government above policy affected the study of four certified organic farmer groups. each organic farmer group's membership decreased as members resigned to join the government's organic rice production policy. the primary motivating factor was the annual subsidies paid to farmers who participated in state-sponsored projects. initially, this group of farmers farmed organically and several divided their land to participate in the policy. however, farmers perceived that the policy may still be lacking regarding organic farming expansion. as a result of government policy, certain former organic farmer group members divided their organic farming areas into smaller plots and registered for the government project using their spouses' names. although the government hoped to attract new farmers to the project to increase organic jasmine rice yields through an increase in the planted area, some farmers joined 'en masse.' however, because their land had previously been used for organic farming, the total area of organically farmed land increased only slightly due to the addition of the 'genuine new farmers.' farmers who had previously resigned from organic farming groups would be ineligible to participate in government-funded projects. the study discovered that most organic farmers remained in their group for many years because they were members of the organic farming program. organic jasmine rice was always priced competitively. each organic farming group's practices concerning this government policy are unique, so organic farmer groups' members are not required to resign their membership. they can, however, choose between two approaches: organic farming that adheres to group standards or organic farming that adheres to government policy. in this case, the organic farmers group must continue accepting such members. this may conflict with the government's policy of expanding organic rice cultivation, as it includes land that was previously organically farmed before joining the government's policy, resulting in a conflation of old and new organic rice cultivation areas. a focus group discussion with research target groups comprised of the organic farmers group chairperson and group members. additionally, it was determined that the policy to promote organic rice fields covering one million rai is a good policy that can contribute to the reduction of chemical use in the fields as it leaves no harmful residues for consumers and is beneficial to rice farmers' health and is suitable for the environment. however, the government policy of encouraging farmer groups to grow organic rice under the organic rice standard established by the ministry of agriculture and cooperatives may fall short of its objectives due to insufficiently thorough and effective inspection by government officials. as a result, it does not affect the price of organic or conventional rice production because general rice mills purchase rice products and may mix the organic and conventional rice produced by farmers, thereby lowering the price of domestic rice. this is because total rice production exceeds consumer demand in the domestic market. this hurts the quality of organic rice mixed with conventional rice, as it will be unable to be exported to foreign countries due to its lack of international certification. in the case of organic rice farming groups cooperating for more than a decade, it was discovered that members who maintain ties to the organic farmer group maintain a level of stability and determination in organic rice farming without being directly affected by the organic rice price problem. this is because organic farmers can export their organic products to international markets. they sell their certified organic rice through green net (a social enterprise that promotes organic living and fair trade) and some export rice trading companies, relying on their international standard certificates. however, additional issues exist today, such as the issue that organic farmer groups face due to the coronavirus-2019 epidemic, which has resulted in widespread problems with the logistics management system used to transport goods. public health measures have reduced transport services, which have social and economic consequences. numerous international purchasers of organic jasmine rice have postponed their purchases. however, due to their superior product quality, these organic rice farming groups are still certified by international standards. as a result, foreign buyers and niche markets continue to prefer it. consequently, these organic farming groups are self-sufficient. additionally, the four distinct groups of organic farmers face similar challenges in developing and maintaining organic jasmine rice production under international standards. the government policy of expanding rice fields by one million rai impacts group members, particularly those who joined more recently, such as second or younger generation members who inherited organic rice cultivation from their parents. those unable to meet the group's standards resigned to comply with government policy and were expected to receive compensation for income earned from organic production by state standards for members of organic farming organizations. to rejoin the group, they must monitor and evaluate certification standards as new organic farming members do. this process could take up to two years before the group can certify organic rice production to international standards. this has a natural effect on the price of domestic organic rice. the government policy of expanding organic rice fields to one million rai may result in an oversupply of organic rice on the domestic market, lowering the price of all rice. the organic rice farming groups maintain high confidence in the foreign and niche markets. if the situation surrounding the coronavirus disease 2019 epidemic improves, the market will recover as orders resume. the government policy of increasing organic rice cultivation to one million rai has had no direct effect on the market or rice prices. organic farmer groups hold certificates certifying that their rice is produced organically and to international standards. however, some may have reservations about government-mandated manufacturing standards. there may also be an indirect effect on organic jasmine rice production by organic farming groups, but the export standards for organic rice will remain unchanged. without a doubt, there will be intense scrutiny. the group upholds certification and consumer confidence in authentic organic jasmine rice by believing in the production process and the integrity of the group. this will include assistance, promotion, and encouragement from local government agencies, individuals, and organizations dedicated to nature and environmental conservation. organic rice farming gr0ups in yasothon province, thailand: lessons learned the history of four groups of certified organic rice farmers: the farmers group of na so, kut chum district was formed in 1976 in response to the community's agricultural needs. there was a need to enhance and alter agricultural production patterns to foster the development of more sustainable agriculture that is both environmentally friendly and beneficial to farmers, producers, and consumers. this can be accomplished using various crop production techniques and avoiding chemicals. farmers in the area can achieve self-sufficiency and mutual assistance through a group process of education and problem solving within the community while adhering to basic working principles based on local customs and traditions. another critical component of the farmer group process is member dialogue and discussion to mobilize opinions and foster collaboration on activities to resolve environmental health concerns associated with agricultural crop production. the bak ruea farmers group was founded in 1976 in maha chana chai district for agricultural promotion and the sale of chemical fertilizers to member farmers. however, the business ceased operations shortly after that due to its inability to collect money due to destructive debt issues. later that year, in 1981, funds raised by members for fertilizer were used to rehabilitate the business and continue to sell chemical fertilizers to its members as before. in 1987, a farmer cooperative began purchasing paddy from its members to sell to general rice mills. in 1998, the village's farmers established a small rice mill. later that year, the group members received funding for the construction of the rice mill from government agencies. non-governmental organizations began encouraging farmers to use fewer agro-chemicals in rice cultivation in 2006 and partnered with green net to produce organic rice. green net is a social enterprise dedicated to organic agriculture and fair trade. it is divided into two divisions: green net cooperative and earth net foundation (scialabba, 2000; sudrajat et al., 2018). nam om community enterprise network, kho wang district, was established officially in 1999 and joined fair trade in 2004. in 2009, the group was registered as a community enterprise and renamed nam om community enterprise network from sustainable agriculture group at nam om sub-district. the early stages of organic farming were defined by farmer membership. they share a common objective of reducing production costs and improving the soil quality in rice fields while preserving the area's natural resources. these actions have resulted in a slight increase in productivity. however, early on, the community enterprise groups placed little emphasis on productivity or diversification of operations. nonetheless, it benefited the market by enabling an increase in both the quality and price of produce. this project strengthened the farmers' groups' capacity to develop sustainable agriculture through collaboration with three partners: the department of agricultural extension, the ministry of agriculture and village foundation, and the united nations development program (undp), all of whom work with the organic farmer groups to produce and sell jasmine rice that meets eu export standards. in 2012, the group received a loan of 4 million baht from the bank for agriculture and agricultural cooperatives, kho wang branch, to expand the standard of production of organic jasmine rice for export and lead to the group having working capital of at least 50 million baht in the same year. nam om community enterprise network is a thriving organic jasmine rice production operation. they have a factory to package organic rice and have registered the trademark "kwannam-om" with the department of intellectual property. they have expanded their standard production source into organic rice production for the overseas market. in 2015 the group collaborated with the organic rice farming groups in surin, buriram, sisaket, yasothon, and amnat charoen to form a cooperative partnership among the five provinces. they now work together and are registered as organic rice exporting farmer's cooperative under the name "isan thai organic company limited." the ban non-sai ngam community enterprise group, mueang district, is now aware of the value of rice and the virtue of undertaking organic rice farming. this group was initially affiliated with the organic rice farming group at pa tiu district, but due to their proximity and the fact that many members were of advanced years, traveling to meet and participate in group activities became troublesome. as a result, they parted and formed a new group. however, they remain allies and share their experiences. by 2013, it had become clear that this group was dedicated to producing organic, safe, and non-toxic jasmine rice. the group has achieved certification to national and international standards, specifically organic agriculture certification in thailand, as well as the eu program and the cor program internationally. the group's work is guided by moral principles and finds strength through the coexistence of its brothers and sisters within a pleasant working environment. they maintain unity and cooperation among themselves while being truthful with their consumers. to cultivate high-quality organic fragrant rice, they work following natural principles and within the community environment. this includes developing and exchanging organic farming knowledge and experience between members and network partners. the group also operates as a location for those interested in studying and visiting their organic farming practices. the provincial policies and strategies for organic farming development related to certified organic rice farming groups in yasothon province. yasothon province has a policy and objectives for continuously developing the province into an organic agricultural area. former and current governors and local government agencies have supported and promoted organic rice farming. yasothon's development goals were established in the yasothon provincial development plan 2018-2022 as an "organic agriculture province and a province of northeastern ways of life"" "" "" "" ""." " the aim is to promote and develop the potential for agricultural resource management to become organic and safe agriculture with a higher added value and minimal impact on the environment. the provincial agriculture and cooperatives office and the office of provincial commercial affairs play a critical role in driving policy and achieving development goals with the groups of farmers engaged in organic rice farming. in yasothon province, there is a working group for the development of organic agriculture. it incorporates work on guidelines for promoting organic agriculture development in the province to ensure its sustainability. it collaborates with organic rice farming groups in connection with the organic rice market and certificates of yasothon province's international organic farming standards to export organic rice to other countries. table 1: demonstrating production potential of certified organic rice farming groups farmer groups cultivated area (rai) group members certified organic standards marketing information sales (1,000 thb/year) 2018 2019 2020 farmers group of na so, kut chum district 7,252 585 organic  agriculture certificationthailand  (act), eu, cor domestic market 20%, international market 80 % by exporting to eu: germany, sweden, italy online market 1 ton per year modern trade market local shop 6,838 13,000 3,434 bak ruea farmers group, maha chana chai district 3,235 211 ifoam, eu, canada domestic market 30%, international market 70% online market 1 ton per year 10,000 4,000 400 nam om community enterprise network, kho wang district 18,351 863 ceres, usda, nop, g1 organic fairtrade, gl, eu domestic market 20%, international market 80% online market 3 tons per year modern trade market local shop 54,510 5 4,000 400 ban non-sai ngam community enterprise group, mueang district 1,568 61 organic  agriculture certificationthailand  (act), eu, cor domestic market 80%, international market 20% by exporting to africa online market 1 ton per year modern trade market local shop 1,000 1,100 1,120 source: marketing information of organic rice farming groups (yasothon provincial commercial office) it also promotes the processing of and value addition to organic raw materials while enhancing and producing research work that contributes to and validates the improvement and achievement of organic rice farming. it promotes and assists farmers or groups of farmers in producing organic fertilizers for household use and provides guidelines for promoting and assisting farmers or groups of farmers participating in the 1 million rai organic rice policy and project. it assists in maintaining agricultural product standards of production in the organic farming system after projects conclude, including offering guidelines for determining the average price for organic paddy at a minimum based on the type of rice (kerdnoi et al., 2014). it aims to entice farmers to sell their goods at a premium. this is because consumers believe that high-quality produce is also more beneficial to health. long-term implementation of organic agriculture policy is under yasothon province's vision of "yasothon organic agriculture city and isan (northeastern region) ways of life," which led to an agriculture development project memorandum of cooperation between yasothon province and the ministry of agriculture and cooperatives on january 29, 2016 (broad & cavanagh, 2012). yasothon province was designated as the country's model for organic agriculture. the province's organic agriculture policies and strategies are being implemented proactively by allowing groups of organic farmers to participate in meetings and decision-making. if a new governor is transferred, farmers' groups and farmer networks will organize themselves and travel to greet the new governor, using the occasion to discuss policies, issues, and guidelines for sustainable development of organic jasmine rice and crop cultivation after the rice harvesting season. additionally, the yasothon way of organic agriculture day is held annually at the provincial level. the day is aimed at public relations, recruitment of new organic farmers, and activities organized at the yasothon organic market for invited private sector partners who purchase and export organic jasmine rice, among other things. policy implementation at the provincial level is undertaken by the relevant agencies, for which the provincial agriculture and cooperatives office is the primary agency working with organic farming groups. the provincial commercial affairs office, provincial industrial office, and the provincial office of community development organize and implement projects to assist and develop the 'farmers' potential in organic agriculture and the academic field of group management (pattanapant & shivakoti, 2009). they assist in coordinating with the central and provincial governments to support the agricultural equipment budget, for example, in purchasing a rice milling machine, rice drying fields, paddy storage sheds, rice color sorter, and rice packaging design for organic jasmine rice. they also participate in developing a strategy for organic agriculture in the yasothon tradition to expand the market and distribution channels, both within the country and abroad. the ministry of agriculture and cooperatives covers the conversion cost to international standards and has established a negotiating team to conduct business with international consumers and exporters. regarding the distribution of organic jasmine rice products by the four groups studied, it was discovered that each group of farmers already had domestic and international trading partners. specifically, the na so organic rice farmer groups already export to foreign markets, with 80 percent of the produce going through the green net cooperative and 20% to the domestic market. the bak ruea farmer group exports 70% through the green net cooperative, with 30% for the domestic market. nam om community enterprise network exports 80% to international markets through the isan thai organic company limited, with 20% to the domestic market. ban non-sai community enterprise group exports 20% through the raithong organic farm company limited with 80% for the domestic market. figure 3: certified organic rice farmer groups, yasothon, thailand source: the sales of the certified organic rice farmer groups between 2018 -2020 (unit: 1,000 thb) the yasothon provincial commercial office conducted a training program to increase farmer knowledge and skills related to online selling to offer organic jasmine rice online and through the online market. the participants included representatives from four farmer groups that grow organic jasmine rice and other farmer organizations. additionally, exporting organic rice to foreign countries has become more difficult for farmers in the yasothon province area due to the coronavirus disease 2019 epidemic (sereenonchai & arunrat, 2021). numerous foreign purchasers, food processing plants throughout the country, bangkok restaurants, and tourist-oriented provinces have temporarily suspended their purchases of organic jasmine rice because many employees in factories and other establishments have become infected and are subject to disease control measures or are on lockdown. as a result, exports to foreign countries and deliveries to the domestic market were suspended. by allowing groups of farmers to produce organic jasmine rice following organic agricultural production standards, yasothon province's organic agriculture development strategy has emphasized policy impacts and the impact of the 1 million rai organic rice project. throughout and following the project's conclusion, it was discovered that the four groups of organic farmers studied possessed both potential and strength. they were ecstatic about the prospect of producing organic jasmine rice that meets international standards and could be exported indefinitely to foreign markets. the naso farmers group has been certified organic under the act, eu, and cor organic standards. the bak ruea farmer group was certified organic by the international federation of organic agriculture movements (ifoam) adenle et al. (2017), the european union, and canada. nam om community enterprise network is certified organic by ceres, usda, nop, gi, fairtrade, gl, and the european union. at the same time, the farmer group at ban non-sai ngam follows act, eu, and cor organic standards (dhiman, 2020). the four organic rice farmer groups have comparable policies and practices in that they all strive to produce certified organic jasmine rice under international organic agriculture standards (willer, lernoud, & kemper, 2018). simultaneously, the group's commitment to environmental protection is reinforced and reaffirmed for group management, as each group is self-contained and self-managed. by becoming provincial partners, they can collectively share and discuss their experiences and concerns at yasothon city hall's organic jasmine rice conference room. group members communicate informally via online platforms such as group line and facebook. moreover, the provincial industrial council, the local chamber of commerce, and civil society in yasothon province have all lent their support. for instance, implementing the project "join together for rice harvesting and an invitation to farm investment volunteers for a sharing economy" and encouraging a new generation of youth to be interested in and participate in organic farming, culture, and yasothon province's way of life. teenagers collaborated to create a website that promotes various activities and narratives related to organic agriculture in the province, such as telling the story of organic jasmine rice cultivation using online communication via their youtube channel. this is consistent with yasothon's strategy for the development of organic agriculture. discussion and conclusion the government policy on organic rice production has affected the original farmer groups that have grown certified organic rice for many years in yasothon province. a study of the large-scale farming promotion policy and the government policy to achieve one million rai (160,000 hectares) of organic rice production demonstrates that both policies have led to a decrease in the original certified rice group membership due to their resignation from participating in the government mentioned above policies. the implementation of the national and provincial level organic farming policies has generally advanced the organic agricultural products in the yasothon province. there is not only organic rice but also organic crops produced after rice harvesting. additionally, the provincial policies and strategies for certified organic rice farming groups in yasothon province are still assisting and promoting organic rice farmers and the members of organic rice growing groups. farmers who participate in the policy and project for large-scale rice cultivation and the 1 million rai of rice must continue to adhere to organic rice production and quality standards after the project concludes. due to the resignation of several group members, the group's production of high-quality organic rice was immediately weakened. as a result of the indirect effect, several farmers became perplexed and concerned about the policy to promote organic rice on one million rai, which resulted in an oversupply of organic rice in the domestic market, according to the standards of the ministry of agriculture and cooperatives. as a result, this would affect the price of rice. government policies should prioritize assisting farming groups producing organic rice that meets international standards in identifying new international markets and resolving transportation issues created by the covid-19 crisis. additionally, the organic rice policy should encourage the development of rice varieties that increase yield per rai while lowering production costs. moreover, soil and water management, as well as flood and drought issues, must be addressed. thus, this research suggests that government policies should be targeted at specific areas and groups to promote organic rice cultivation of 1 million rai without adversely affecting farmers who have been successful in managing certified organic rice production, for an extended period, over the last decade. the state should develop clear policies and strategies for organic agriculture at the area level, distinguishing between farmers growing organic rice under the 1 million rai promotion policy and established farmer groups displaying significant potential and who have already achieved export-quality production certification standards. yasothon province has been recognized as a national model for organic agriculture development due to the consistency of its organic agriculture development policies and strategies. it is a province known for its high-quality organic jasmine rice and has seen sustained and vigorous development. thus, the government should prioritize a trading strategy that focuses on market expansion and establishing additional distribution channels within the international market. 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(2018). organic farming and good agriculture practices (global gap) to achieve food safety for crops: as a review. research & reviews: journal of agriculture and allied sciences. 7(1), 27-34. 2018 foreign markets domestic market foreign markets domestic market foreign markets domestic market foreign markets domestic market na so organic rice farmer groups (exporter: green net cooperative) bak ruea farmer group (exporter: green net cooperative) nam om community enterprise network (exporter: isan thai organic co.,ltd.) ban non sai community enterprise group (exporter: raithong organic farm co.,ltd.) 5470.4000000000005 1367.6000000000001 7000 3000 43608 10902 200 800 2019 foreign markets domestic market foreign markets domestic market foreign markets domestic market foreign markets domestic market na so organic rice farmer groups (exporter: green net cooperative) bak ruea farmer group (exporter: green net cooperative) nam om community enterprise network (exporter: isan thai organic co.,ltd.) ban non sai community enterprise group (exporter: raithong organic farm co.,ltd.) 10400 2600 2800 1200 32000 8000 220 880 2020 foreign markets domestic market foreign markets domestic market foreign markets domestic market foreign markets domestic market na so organic rice farmer groups (exporter: green net cooperative) bak ruea farmer group (exporter: green net cooperative) nam om community enterprise network (exporter: isan thai organic co.,ltd.) ban non sai community enterprise group (exporter: raithong organic farm co.,ltd.) 2747.2000000000003 686.80000000000007 280 120 32000 8000 224 896 image1.png image2.png image3.jpeg agbioforum, 24(2): 12-22. ©2022 agbioforum halal food certification, financial performance, and sustainability reporting: comparative study of food and beverage firms in malaysia and indonesia dianwicaksih arieftiara faculty of economics and business, universitas pembangunan nasional veteran jakarta email: dianwicaksih@upnvj.ac.id jubaedah nawir faculty of economics and business, universitas pembangunan nasional veteran jakarta email: jubaedah@upnvj.ac.id *indri arrafi julianisa faculty of economics and business, universitas pembangunan nasional veteran jakarta email: indri.arrafi@upnvj.ac.id *corresponding author the demand for goods and services that adhere to halal standards rises along with the number of muslim societies. the process of certifying goods or services under sharia, or islamic law. the current study examines a corporation's performance in relation to halal food certification. it also intended to examine the effects of halal food certification on publicly traded malaysian and indonesian food and beverage companies' sustainability reporting. the current study, which uses multivariate linear panel data regression to examine 245 firm years in malaysia and indonesia from 2016 to 2020, demonstrates that halal certification positively impacts the business's performance in malaysia and indonesia. second, the study shows that reporting on sustainability is negatively impacted by halal certification. third, compared to indonesian firms, malaysian firms are less concerned with sustainability reporting. consequently, this study offers two contributions. first, this is the first study to examine how halal certification affects the caliber of sustainability reporting. second, the outcome offers concrete evidence of how the halal certification affects sustainability reporting from the perspectives of malaysia and indonesia. the conclusion is that halal certification as a commitment by food and beverage businesses to offer goods and services in line with sharia principles has a beneficial effect on corporate performance. this suggests that switching to halal goods and services can improve a company's success. however, the anxiety with halal certification causes businesses to pay less attention to sustainability reporting. companies put more emphasis on obtaining halal certification than fulfilling the sustainability reporting requirements for food and beverage businesses in malaysia and indonesia. key words: food and beverage; food certification; halal; sustainability reporting; indonesia; malaysia. 1. introduction one of the expanding market sectors is the worldwide halal market (wiersma et al., 2014). according to predictions, the global halal market had a net worth of about us$ 3.1 trillion in 2018 and us$ 5.0 trillion in 2030 (ahmad et al., 2018). the muslim population's high demand and nonmuslim consumers' acceptance of halal products are factors contributing to the growth of the halal market (kassim et al., 2014). according to the state of the global economy report 2019/2020, 2019, there were 1.7 billion muslims in the globe as of 2014. of this population, 62 percent reside in the asia pacific area (wiersma et al., 2014). as a result, the asia pacific region has a sizable potential market for halal cuisine. nowadays, there has been an awareness of halal among muslim and non-muslim countries, which need to meet their internal muslim market to expand into the worldwide markets (ab latiff, 2020). there has been research in the past that has uncovered the sources of muslim customers' knowledge about halal goods or meals. sadly, the majority of earlier studies solely looked at halal certification marks. implementing a company's sustainability is now the focus of this research. consumers today only pay attention to halal items or the halal label on the product packaging; as a result, sustainability reporting is more difficult because businesses frequently ignore it. despite the expanding market for halal food and the rising government measures to seize the halal market, at the moment, the "mature and advanced halal industry" and the widespread availability of restaurants that have been formally certified as serving halal food are currently highlighted, along with prayer facilities, despite the growing market for halal food and the increasing initiatives from various governments to capture the market. (henderson, 2016). therefore, it is still up for empirical debate whether halal food certification is linked to numerous organizational elements. the current study focuses on sustainable business practices and how halal certification affects how businesses consider the welfare of future generations, in particular. these areas of concentration are considered sustainability strategies in modern academic literature. the current study tries to fill this gap by examining sustainability reporting and halal food certification. the study is carried out by conducting a comparative examination of the effects of halal food mailto:dianwicaksih@upnvj.ac.id mailto:jubaedah@upnvj.ac.id mailto:indri.arrafi@upnvj.ac.id agbioforum, 24(2), 2022 | 13 arieftiara, nawir and julianisa. — halal food certification, financial performance, and sustainability reporting certification on the sustainability reporting of listed enterprises in the food and beverage sector in malaysia and indonesia. for two key reasons, malaysia and indonesia are institutional settings. first, both nations have a significant impact on the halal food sector. malaysia is a muslim-run frontier in the world's halal trade centre. indonesia also has the largest muslim population in the world (arsil et al., 2018). these factors turn the nation into a target market for halal goods. second, while indonesia has not yet made halal food certification necessary, it is voluntary there, unlike in malaysia, where it is voluntary (hamid et al., 2016). the empirical results of this study should shed light on the possible impact of halal food certification on organizational performance in southeast asia, given the worldwide relevance of the halal markets in the two nations. the association of southeast asian nations (asean) has proposed the asean economic community for southeast asia (aec). one goal of the aec is to protect consumers by establishing the asean committee on consumer protection to get consumers ready for the free market community (accp) development. halal certification is also seen as a consumer protection measure. according to the terms halal and tayyib, halal foods and beverages are those that have strictly been produced under the holistic halal assurance management system. for a muslim consumer, this means that the products have complied with shariah requirements. however, for a non-muslim consumer, it signifies hygiene, quality, and safety. therefore, we can conclude that halal goods and services' virtues and security/safety cannot be detrimental to the environment. then, environmental safety refers to the development of halal products and services that won't harm the environment and are concerned with the sustainability of the next generation's future lives(ambali et al., 2014; sulaiman et al., 2014). halal certification and sustainability reporting research still receives little attention nowadays. in recent years, most businesses around the world have focused less on the financial performance of their organizations and more on how their operational practices affect social issues and the environment. therefore, this study will look into how halal certification may impact how a company reports on its sustainability efforts (secinaro et al., 2021). the corporation is eager to keep the halal label recognizing nutritious and halal products because the consumer is solely interested in the halal label. however, when reporting, it is essential to consider a company's sustainability. although the report also includes elements that can help halal products, such as the funding and production components, it is crucial to focus on the sustainability reporting. therefore, the innovative aspect of this research is to examine the impact of halal certificates on financial reporting and the variations in sustainability reporting practices between malaysia and indonesia. 2. literature review 2.1 the halal-tayyib relationship the core definition of halal is based on the islamic principle that everything is halal by nature "he has also made subservient to you all that is in the heavens and the earth". non-halal has been specified as an exception, and the main ex-exceptions of halal are ethanol, blood, pork carnivores and omnivore animals, food contaminated with non-halal ingredients and food with potentially toxic ingredients that may expose human health to danger. indeed, islam emphasizes strongly on the issue of food safety, thus frequently associating the halal concept with tayyib when halal is related to food "o ye who believe! eat of the clean and pure that we have provided for you, and be grateful to allah if it is him ye worship". tayyib in arabic means clean and pure. therefore, the concept of tayyib, concerning food, represents a process through which the food passes to achieve both objectives: maximum hygiene (clean) and minimum contamination (pure) without any potential toxicity, najis (ritually unclean) and khabith (impure) ingredients. therefore, how halal, which is a subject, is being processed will determine if halal is tayyib or not. therefore, the tayyib processing of halal will have a positive impact on mood, health and faith, practising "verily allah the exalted is pure (tayyib). he does not accept but that which is pure (tayyib)" (sahih muslim). 2.2 the value of halal and tayyib food even though many non-muslims (especially in modern nations) eat non-halal food and are healthier and live longer than many muslims, many muslim scholars have rationalized the health benefits of halal cuisine. furthermore, islam permits muslims to consume nonhalal food in dire situations where there is no access to halal food and human life is at risk. what is the benefit of consuming halal food, though? since halal food is based on islamic principles, spirituality is its primary virtue. it is understood to be a culmination of joyful feelings, a significant realization of one's relationship with the creator, and a feeling of fulfillment and success. as a result, when muslims consume non-halal food, their hearts are not at peace. contrarily, what will happen next is stomach ache. importantly, adverse effects on immune system function, oxidative stress, metabolism, and food digestion will occur, eventually leading to the onset of diseases. 2.3 advantages of tayyib concerning food safety food is the primary source of energy in our daily lives. it contains vital nutrients like proteins, carbs, fats, minerals, and vitamins that provide the energy needed to live and thrive. the food industry provides us with a variety of options with varying food quality. food quality is crucial since it might potentially be a means of disease transmission, which impacts people's health. maintaining public health and sustaining life depends on food safety. agbioforum, 24(2), 2022 | 14 arieftiara, nawir and julianisa. — halal food certification, financial performance, and sustainability reporting the safe handling, preparation, and storage of food primarily reduce illness and injury. any point in the food system, including production, storage, and packaging, is vulnerable to contamination. every stage of the food cycle can impact human health and cause various diseases. 2.4 halal concept halal is a term from arabic that means permissible, legal, and in line with islamic law or sharia. halal is everything that is allowed by sharia to be consumed, especially in terms of food and drink. in the qur'an in surah al-baqarah verse 168 as allah swt has mentioned: o people, eat what is lawful and good from the best of the earth, and do not follow the footsteps of the devil; because indeed the devil is a real enemy for you (sayekti, 2014). (qs. al-baraqarah: 168) in the above verse, it has been explained that muslims are required to eat halal and good food. halal and good food here is the food permitted by good conditions in substance and process. as for good food, it means good for the health and does not harm the body. 2.5 current retail practices in malaysia islamic perspective on halal food halal is something that can be done and does not result in punishment (sin). in contrast, haram is something that allah swt prohibits. it is forbidden because the person who violates sharia is liable for punishment by allah in the hereafter. halal food is the type of food that muslims are allowed to consume and does not result in punishment (sin). haram food is the food that muslims are prohibited from consuming, resulting in sin and punishment from allah swt. in addition, according to the prophet muhammad saw. those who have consumed haram foods are said to have sinned. furthermore, all acts of worship they performed will not be accepted by allah. thus, for muslims, conformity to the islamic teaching requires that the products consumed are guaranteed halal and pure. according to islam, consuming what is halal, pure and good (tayyib) is a religious command and is obligatory. there are several verses and hadiths that state this matter, including al-baqarah [2]: 29, 195, al-jâtsiyah [45]: 13, al-a'râf [7]: 157, al-mâ-idah [5] : 3, al-an'âm [6]: 145, al-nahl [16]: 115. according to islamic law, some materials are halal with the evidence of the clear rules called qath'î tsubût (qur'an or hadith mutawatir). this includes the types of food permissible to be consumed by the general rule as long as no rule forbids it. there are also types of food or food that are prohibited by the rule called qath'î al-dilâlah. among the halal and haram issues, a few types of foods are still vague (syubhat) and the status that does not include in the first and second categories (mukhtalaf) (hidayat et al., 2015). 2.6 halal food certification consumers are thought to be protected by halal certification from eating food that is against islamic law. indonesia can benefit from the opportunities in the halal business as a nation with a majority muslim population. now, halal certification is one of the cornerstones to being competitive in global trade. additionally, the presence of halal labeling serves to safeguard domestically produced items against the influx of imports brought about by free commerce. as previously mentioned, the government has adopted various regulations that reflect its positive response to the significance of halal certification and the inclusion of halal labels/marks on goods (halal labeling). this regulation, however, remains fragmented and sectoral. law no. 19 of 2012 on food, the government regulation no. 69 of 1999 on food labels and advertising, the presidential instruction no. 2 of 1991 on improving the development and supervision of production and circulation of processed food, and the cooperation charter of the ministries of health, ministry of religion, and mui on the implementation of "halal" labeling on foods all give this impression (lim et al., 2017). 2.7 financial performance the financial performance serves as a gauge of how effectively a corporate manager manages the operation of the company. the topic of financial performance measures as viewed through a company's financial statements has been provided in various sources. different metrics of financial performance exist. net income, profitability, growth, economic value-added, and even today's triple bottom line, or people, planet, and profit, can be used to gauge financial performance. companies might use a variety of formulas to gauge this financial performance. they can be chosen and used accordingly. according to nida t (2022), businesses that use the information to evaluate the past and make goals for the future must use it while examining, evaluating, and establishing plans for financial success. 3. previous research the earlier investigation by talib et al. is cited in this study (2017). this study tries to connect the use of halal food certificates with financial success. this project intends to gather the information that will help close the knowledge gap in halal food certification. this study discovered that halal certification could enhance operational, business, and firm financial performance. another study on halal products by warhantini et al (2018) concluded that the inclusion of the islamic finance and banking industry sector would make the development of the halal industry more competitive. this study intends to investigate how islamic finance has influenced indonesia's halal food business. based on the analysis's findings, it can be said that islamic banking plays a role at every level of the production process in addition to sharia-based finance that is free of usury (interest), may (uncertainty), and gharar (gambling) (halal value chain management). agbioforum, 24(2), 2022 | 15 arieftiara, nawir and julianisa. — halal food certification, financial performance, and sustainability reporting pujayanti's research (2020) shows that the halal paradigm can contribute to the global economy. the industrial revolution's impact on the sustainable development goals to succeed in the 4.0 era, the halal industry must be able to work together, become more tech-savvy, and strengthen linkages at all levels. as a result, the halal industry has evolved into a new paradigm for the industrial world, enabling people to engage in economic activity, interact with others and make money without regard for morality while also producing sustainable economic growth that upholds islamic religious law in the marketplace. hossein g.t et al., (2020), share research on halal product usage in malaysia. a necessary condition analysis was carried out to determine the risk conditions necessary to produce the desired results. data gathered on customers' opinions at international halal restaurants in malaysia was used to test the models. the findings show that the varied interactions of risk conditions support complexity theory. the paper's conclusion discusses the policy ramifications for the state of the tourism sector and the muslim world and additional study on circular economy and sustainability goals for the business. according to the research done by r. arbolino, r. boffardia, g. ioppolo, tl lantz, and p. rosa in 2021, successful implementation of these strategies must be built on reliable measurement methods that assess both the processes and results of policy implementation. considering sustainability and the circular economy, this study proposes a fresh perspective on industrial sector performance. utilizing a method developed by the oecd, we created an industrial sustainability index and four subindices to evaluate several aspects of circular economy and industrial sustainability interventions, including inputs, company activities, outputs, and resource efficiency outcomes. the suggested method lets decision-makers quickly discover the system's strengths and best practices, balancing policy interventions under the urgent requirements of various sectors, components, or players. there is no connection between the sustainability reporting and halal products in any of the five references used. this research is unusual because no prior studies examine each country's perspective on sustainability reporting. 3.1 halal certificate and firm's financial performance according to several academic studies, managers' actions and choices on operational decisions and other strategic choices greatly impact financial performance. one is the manager's choice to implement the halal aspect of islamic law in its operational activities (funding, production, and marketing). the company's dedication to implementing halal systems is demonstrated by the achievement of obtaining halal certificates by the assessment agency, which is carried out under the third-party assessments (both government and organizations such as the indonesian ulema council) on the company's operational processes. halal is one of the factors that people consider when deciding whether to consume or purchase a good or service when compared to another good or service that does not bear the halal label because of the community's growing interest in and need for halal products, which were thought to have a positive impact on human life and are safe in their lives in the future (hereafter). the consumption patterns that have changed and become more prevalently halal have a good effect on the company's financial performance. according to talib et al. (2017), halal certification can enhance a company's operational, commercial, and financial performance. numerous empirical studies demonstrate that halal certification improves corporate performance in malaysia (khalek, 2014). given the tendency toward halal goods and services and the country's similarities to malaysia, indonesians are likely to take halal certification into account when making purchasing and consumption decisions. h1: halal certification positively affects firms' performance. 3.2 halal certification and sustainability reporting halal certification, based on sharia, is an assurance from the islamic authority or entity that the business has complied with the sharia criteria for manufacturing goods or services. islam has specifically established a foundation and a set of guidelines through the halal concept derived from islamic law (sharia), which controls every aspect of a muslim's life. in this sense, the concept of sustainability meets the islamic approach in the words of god in the holy quran (i.e., holy book of muslims). allah has stated: "o mankind, indeed we have created you from male and female and made you peoples and tribes so that you may know one another “ (secinaro et al., 2021). your upright is, in fact, the most honorable in allah's eyes. indeed, allah is aware and knowledgeable (quran 49:13). the passage suggests that control piety is a crucial component in establishing communities in the laws governing human interaction. without any distinction aside from piety and ethics, each individual is accountable for the creation of society, not the human race, gender, or male or female (wajdi dusuki, 2008). this connection is made in light of islam's fundamental principle of adhering to the global compact's csr principles (williams et al., 2010). regarding accountability, some rules govern transaction contracts that call for parties to bear responsibility for carrying out their responsibilities and sentence those who break the conditions to severe penalties. the muslim is subject to god's wrath, particularly when a man can evade human control and judicial penalties. this is not just limited to administrative or judicial sanctions. muslims who practice islam are subject to legal and moral restrictions on how they are treated in the marketplace. the company's efforts to prevent corruption are most notable for its transparency, honesty, and accuracy in its information to other parties (graafland et al., 2006). consequently, the islamic economy, which relies on justice through acceptable disclosure norms and agbioforum, 24(2), 2022 | 16 arieftiara, nawir and julianisa. — halal food certification, financial performance, and sustainability reporting transparency, places a premium on accountability (biancone et al., 2016; murphy & smolarski, 2018). this way, the connection between sr and islam may be seen in halal certification (secinaro et al., 2021).according to (shariff et al., 2014) the government has successfully fostered healthy competition among producers and manufacturers to ensure the supply of high-quality, sanitary, safe products and to fulfill its social commitments to consumers, mostly muslims. the halal certification is a strong instrument that primarily targets a consumer target identified based on religious affiliation and ensures that products and processes comply with islamic law (shariah) (secinaro et al., 2021). it enables the business owner to invite investors into their organization (secinaro et al., 2021). ownership of halal certificates has a favorable impact on the amount of disclosure of corporate social responsibility, according to secinaro et al. (csr). according to a study by secinaro et al. (2021) that focuses on food and beverage businesses in italy, knowing that a company owns halal credentials adds value to its environmental, economic, and social aspects. this demonstrates how the halal principle—which means good for all of nature—affects how businesses report their social obligations as part of their efforts to ensure the sustainability of the environment and the communities they serve. in light of the description above, the research's hypotheses are: h2a: halal certification affects sustainability reporting. h2b: there is a different sustainability reporting between malaysian and indonesian food and beverage companies. 3.3 institutional background the department of islamic development malaysia (jakim) is in charge of halal certification in malaysia (badruldin et al., 2012). the government has introduced ms 1500: 2004 halal standard to ensure that the halal certification, as granted by jakim, is acknowledged globally (ab latiff, 2020). while it is not yet required, halal certification in indonesia is completely voluntary, unlike malaysia, where it is necessary (hamid et al., 2016). even though they have received halal certification from their home country, foreign-produced halal goods that enter the indonesian market must pass a halal audit by the lppom mui and indonesian halal authorities (sa'adan et al., 2017). all products that enter, circulate, and transact in indonesia must be halal certified, according to indonesian law no. 33/2014 about halal products act (jaminan produk halal) (hpa) (abnr, 25 february 2019). 4. methods because indonesia and malaysia have the highest populations of muslims, these two nations were chosen for comparison in this research model. the study covered the years 2016 to 2020 because there has been an interest in halal products during the past five years and a rise in public knowledge of halal products during that time. because the research model includes two countries simultaneously, the multiple linear regression approach using panel data was employed as the analytical tool in this study. the tests make use of modeling, assumptions, and normalcy. 73 food and beverage enterprises from indonesia and malaysia make up the entire sample. in indonesia's food and beverage sector, there are 6 businesses out of 23 that lack halal certification. additionally, 17 out of 50 businesses in malaysia lack a halal certification. according to the figures for the two nations, there are 26% of non-halal-certified businesses in indonesia, while there are 34% in malaysia. because the study was carried out in two research capitals, it is obvious that the issues with sustainability reporting and the financial reports that belong to each organization are there. this study is better at regressing panel data because it combines cross-sectional data (data involving many objects) and time series data (data with many years). in addition to panel data relating to individuals, companies, districts/cities, provinces, countries, and other units from time to time, there is bound to be heterogeneity within these units. by allowing subject-specific variables, panel data estimation techniques can explicitly account for this heterogeneity. panel data is also a combination of time series and cross-section data. it offers more useful information, variation, less collinearity between variables, more degrees of freedom, and greater efficiency. to examine hypothesis 1, the empirical model used in this research is as follows: 𝐹𝑃𝑖𝑡 = 𝛼0 + 𝛼1𝐻𝑆𝑖𝑡 + 𝛼2𝑆𝐼𝑍𝐸𝑖𝑡 + 𝛼3𝐿𝑛𝑆𝐺𝑅𝑊𝑖𝑡 + 𝛼4𝐴𝐺𝐸𝑖𝑡 + 𝑒𝑖𝑡 (1) where: fpit = financial performance (return on assets) i pada tahun t sizeit = company size lnsgrwit = log natural growth of company sales ageit = company age hs = 1 halal and 0 non halal eit = error term for hypothesis 2, the following empirical model is used in the investigation: srit = β0 + β1fpit + β2 hsit + β3 prit + β4ageit+ β5countryit 𝑒𝑖𝑡 …………………………………………………….(2) where: sr = sustainable report fp = financial performance hs = 1 if halal certificate and 0 non halal certificate pr = profitability ratio (return on sales) age = age of company country = 1 if malaysia; 0= indonesia 5. results multivariate linear regression with panel data is used in this work. all variables have met the traditional assumptions of normality, multicollinearity, heteroscedasticity, and autocorrelation. before models 1 agbioforum, 24(2), 2022 | 17 arieftiara, nawir and julianisa. — halal food certification, financial performance, and sustainability reporting and 2 are empirically tested, the chow test and hausman test are conducted to evaluate whether the best-fit estimator model has a common effect, fixed effect, or random effect. the outcome demonstrated that the random effect model is the best estimator. the empirical test results for models 1 and 2 are summarized in tables 1 and 2. table 1. summary of empirical test on model 1 variable coefficient std. error t-statistic prob. decision c 6.723222 2.249955 2.988158 0.0030 hs 4.134439 1.727299 2.393586 0.0173** h1: supported size -0.054283 0.101162 -0.536595 0.5920 lnsgrw -0.319742 0.127612 -2.505574 0.0128 age 0.041383 0.029513 1.402167 0.1619 r-squared 0.076682 mean dependent var 0.970560 adjusted r-squared 0.063813 sd dependent var 3.433120 se of regression 3.322584 sum squared resid 3168.355 f-statistic 5.958834 durbin-watson stat 1.665444 prob(f-statistic) 0.000128 source: calculated by the authors *, **, *** significant on level 10%, 5%, and 1%. fpit = 6.722 + 4.134*hs 0.054*size 0.320*lnsgrw + 0.041*age +eit it is clear from table 1's multiple linear regression results that a product's halal status impacts its financial performance. halal, in this context, is a dummy variable with the values 1 and 0, where 1 is used in malaysia and 0 in indonesia. it is possible to conclude that my consumption of halal items in indonesia and malaysia is regarded favorably. with a probability value of 0.0173, hs has been demonstrated to have a significant impact; hence, it is already below the study's alpha level of 5%. (0.05). this can mean that halal certification plays a significant role in the food service industry as a guarantee of safety and quality for foods and beverages authorized by the government or affiliated islamic religious entities. as a result, muslim food consumption habits are strongly influenced by islamic principles. since most of the population in indonesia and malaysia are muslims, these nations prefer products with the halal logo and have complete faith in their providers. since muslim consumers do not need to worry about food safety or religion as long as the business is lawful to operate and the product has been declared halal by the authorities, this phenomenon has prompted many enterprises to place halal trademarks on their products. fawzi et al., (2021) assert that the company's involvement in every sector is primarily motivated by the desire to make money. as a result, a firm's financial performance is valuable to the general public (investors) since it allows them to gauge and evaluate the success of the linked company using the financial information offered. comparing other industries in the nation, the f&b industry is growing at the highest percentage rate in malaysia and indonesia. while indonesia's principal manufacturing sector is the f&b business, which has so far been evaluated favorably, malaysia, which has the characteristics of a significant export market, includes the f&b industry in an industry with a fast-growing performance. this is demonstrated by the business's sales growth statistics, which show continued growth and are indicated by the achievement of an export value of usd29.91 billion in 2018. an efficient company with a high asset turnover in the food industry can then raise its lucrative sales volume and, thus, its revenue. increasing the ability of businesses in malaysia and indonesia to make money off of their sales will impact how effectively they use their assets to do so. this suggests that listed f&b businesses in malaysia and indonesia might prioritize cost control over sales performance to increase their operational profitability in market sales. it is more likely that a rise in the company's operating profit will also increase its profitability by assuming that the value of the company's assets remains constant (roa). according to this research, firm age and size have little bearing on financial success because big businesses have more freedom to access the capital, they need to pursue lucrative investment possibilities. large companies have many competitive advantages that can affect the growth of the company's profitability, including the ability to set high prices for their products due to their market dominance and the ability to save money, so they frequently pay little attention to their financial performance. related to any enlargement. because of the high maintenance expenses for massive assets and the extensive range of operations the company has, its financial performance will suffer. it's because the company's profit does not expand at a rate that keeps up with its increase in assets. furthermore, a company's age has little bearing on its financial success because it serves solely to inform it of its length of existence. since a company can adapt to changing economic conditions and dangers, the length of its existence does not ensure that it will produce better profits than a newer one. therefore, it is demonstrated by research findings that the halal certificate has a favorable effect on financial performance. halal certification can assist grow a company's customer base and boost customer loyalty. in addition, highlighting the halal certification on the product would enhance sales and consumer confidence in the brand. not to mention that h1 is supported in this case study if the corporation runs a campaign to improve its financial performance. agbioforum, 24(2), 2022 | 18 arieftiara, nawir and julianisa. — halal food certification, financial performance, and sustainability reporting table 2. summary of empirical test on model 2 variable coefficient std. error t-statistic prob. decision c 4.768610 0.177201 26.91080 0.0000 fp -0.150143 0.155430 -0.965984 0.3350 hs -0.469229 0.180695 -2.596805 0.0100** h2a: supported pr 0.080323 0.081969 0.979924 0.3281 age 0.003428 0.003774 0.908373 0.3646 country -5.891948 0.159102 -37.03263 0.0000*** h2b: supported r-squared 0.868099 mean dependent var 1.131232 adjusted r-squared 0.865340 sd dependent var 1.749595 se of regression 0.642032 sum squared resid 98.51707 f-statistic 314.5942 durbin-watson stat 1.999119 prob(f-statistic) 0.000000 source: calculated by the authors, 2021 *, **, *** significant on level 10%, 5%, and 1%. srit = 4.768 0.15014 fpit 0.4692 hsit + 0.080 prit + 0.003 ageit 5.891countryit 𝑒𝑖𝑡 because consumers only look at the halal label and the sustainability report is not disclosed on the store, product, or other labels, customer loyalty will be maintained even if the company does not implement the sustainability report. in this study, a forum group discussion (fgd) was held to discuss how halal certifications are adversely related to sustainability reporting, particularly in malaysia and indonesia, where the same phenomenon occurs. the fgd focused on why consumers don't pay attention to sustainability reporting in detail and what their motivations are for buying products. every industry must report on sustainability to preserve sustainable manufacturing. however, it is clear from the study's findings that growth in the number of muslims in a nation does not have a good impact on sustainability reporting, and businesses appear to be more concerned with giving halal certificates priority. it has been observed that consumers are solely interested in the halal label on products' packaging, stores, and elsewhere instead of reporting the report. managers will take some strategic action based on the environmental circumstances of their companies, claims arieftiara et al. (2020). in this situation, managers must make critical and uncertain decisions while considering the company's situation. managers considered indonesia and malaysia, which are both similar, while weighing whether to publish sustainability reporting or comply with halal regulations, giving more weight to halal requirements than sustainability reporting/disclosure. in fact, according to ojk regulation 51/2017, which governs reporting requirements, the requirement for sustainable reporting for stock issuers started in january 2019. by examining the actual scenario, mandatory reporting laws have been in place in malaysia since 200. since so many businesses haven't disclosed it, the authorities must be concerned about this and want to enforce the laws more strictly. 6. discussion two things are included in the halal industry integration strategy. first, consider variables influencing a company's or producer's decision to pursue halal certification. analyzing each participant's role in the halal sector is the second step to boosting motivation (widiastuti, 2020). henderson (2016) asserts that the halal food sector is still in its infancy and has enormous potential for domestically and internationally growth. muslims are picky about the halal certification of the products they purchase because the halal certification logo on food products verifies that they were produced with the highest quality, and it also encourages many food manufacturers to participate in displaying the halal logo on the food product label (arif et al., 2021; henderson, 2016). the majority of corporations' use of halal-compliant components has recently come under scrutiny. food ingredients must be certified carefully because certain firms may not follow halal practices even after certification. to ensure that the supply chain complies with shariah and consumer expectations, farmers, processors, food premises owners, food handlers, food servers, and government authorities must work together (kassim et al., 2014)). the existing halal framework includes inspection for monitoring and other enforcement operations as postmarket control. these actions are constrained by relevant laws upheld in the nation (asa, 2018). the trade description act of 2011; the food act of 1983 (act 281); the food regulations of 1985; the food hygiene regulations of 2009; the animal act of 1953 (revision 2006); the animal ordinance of 1953; the animal rules 1962; the animals (importation) order 1962; the abattoir act (corporatization) 1993; the custom act of 1967; the custom order (prohibition of import 1998); the local government bylaws of 1976 (act 171) (zakaria et al., 2019). malaysia has created its halal standards in addition to laws and rules. the standards are decided upon by committees made up of manufacturers, decision-makers, consumers, and other interested parties. there are now 14 halal standards in place. the industry must adhere to the practical requirements outlined in ms1500: 2009 when preparing and processing halal food. in malaysia, the state religious authorities and jakim oversee issuing halal certificates to the industry, with the ms1500 standard serving as the foundation (department of standard malaysia, 2017). as of now, jakim (jabatan kemajuan islam malaysia) and the state islamic religious council use ms1500 as their sole basic reference when issuing certificates for halal food in malaysia. launched in 2000, the ms had three revisions in 2004, 2009, and 2019. the agbioforum, 24(2), 2022 | 19 arieftiara, nawir and julianisa. — halal food certification, financial performance, and sustainability reporting most extensively used halal ms, ms 1500, has been around for ten years. as a result, the un has acknowledged it as a reference point for global halal norms (sari et al., 2021). according to van der spiegel et al (2012), distinctness in certificates is achieved by universally recognized standards and halal assurance systems, which is necessary for consumers to have confidence in halal products. worldwide, several halal certifying bodies (hcb) have been created. malaysia currently recognizes 67 islamic organizations throughout 41 nations. government organizations are specifically responsible for issuing and overseeing halal certificates. to receive a halal certificate, all applicants must, in brief, go through a series of rigorous and time-consuming steps, including application, audit process (including, if necessary, corrective measures), and panel review. after the approval of the certificate, certified businesses will also be watched. businesses seeking halal certification do not consider halal awareness, knowledge, or barriers to halal practices. business people who are informed, knowledgeable, and aware of the process do not necessarily intend to conduct halal certification. acceptance of halal certification, willingness to standardize production, external support from mui, and customer expectations are the primary forces behind halal certification (sudarmiatin et al., 2020). the effectiveness of halal certification needs to be emphasized if we want to stay competitive. businesses who export their products can use the halal certificate to assist them in meeting the halal standards from the importing countries, which can help the firm expand its market to boost sales and revenue, as halal product certification is a requirement for entry into the global halal market (noordin et al., 2014). businesses seeking halal certification do not consider halal awareness, knowledge, or barriers to halal practices. business people who are informed, knowledgeable, and aware of the process do not necessarily intend to conduct halal certification. acceptance of halal certification, willingness to standardize production, external support from mui, and customer expectations are the key forces behind the halal certification. dealing with national and international halal food scandals or occurrences frequently puts the efficacy of the entire halal food control management to the test. halal food scandals and incidents happen frequently. analytical quality assurance programs are required to ensure that laboratories can provide reliable results for the food control system. the analysis must be done at specific government laboratories for halal food control (khalek, 2014). the official laboratory for halal certification at the moment is the one run by the department of chemistry (doc). doc is an established research organization with 11 labs across the country outfitted with cutting-edge technology and strong human capital experience and abilities. 350 science officers with an average of 10 years’ experience and 530 technical support personnel support doc. in addition to halal analysis, doc is in charge of activities involving analysis for homicide investigations, food safety, and product specification evaluation. part of the responsibility for guaranteeing that imported meat and meat-based products into malaysia are halal certified falls to the veterinary department. the department of standards malaysia is in charge of creating the halal food standard and accrediting conformity assessment bodies, which include testing facilities, inspection agencies, and certification organizations (borhan, 2016). the royal malaysian customs inspects imported food products at the numerous ports of entry. 7. additional analysis using micmac software, which may identify any critical variables that have the potential to have a significant impact, a sustainable engineering analysis is conducted to define the major variables that affect halal factors and sustainability reporting on a halal food product. as a result, the following findings were made using software analysis: the straight graph's findings show that costs, processes, governmental regulations, and brand reputation are the variables that ultimately determine success. thus, it is clear from the findings of this analysis that a product that possessed a halal certificate had to be able to pay. it must maintain the production process, starting with the acquisition of materials, materials processing, cutting, up to the packing, and reporting sustainability reporting and the procedure for acquiring a halal certificate. the government is also involved in adopting sustainability reporting and halal certificates. companies that refuse to manage halal certificates and sustainability reporting appear to be getting off scot-free. the government appears to have remained unchanged thus far. customers are also concerned with a company's reputation because branding is a crucial aspect of corporate sustainability. in contrast to a company that just displays a halal emblem, a company with a good reputation will continue to operate. the halal certification is simply one aspect of the company's reputation, though, if it is still relatively new. the collection of factors that have a high level of influence and dependency includes materials, human resources, services, location, awareness, and infrastructure. like the material variable, many business actors who use halal components but lack funding cannot administer halal certificates and handle sustainability reporting. consumer awareness of halal food and their view of whether a company reports on its sustainability efforts is still quite low; as a result, reputation plays a significant role in influencing consumer awareness. because a good site has backing from the government, high expenses, and is strategically advantageous, the location in the study's conclusions appears to still be highly dependent. location is still crucial in a nation with a majority of muslims. the government must have a plan in place to control halal travel. otherwise, nations where muslims make up a minority population, must take special care to prepare for halal tourism in addition to other factors that are still greatly influenced by other factors. agbioforum, 24(2), 2022 | 20 arieftiara, nawir and julianisa. — halal food certification, financial performance, and sustainability reporting because the assets are not considered by the company holding a halal certificate, symbols, storage locations, and penalties are the variables with the lowest independence and effect. because the company's reputation is more important to customers and the government does not strictly enforce the penalty for violations, they frequently disregard these emblems. despite the government mandating it, halal certification is frequently absent from sustainability reporting regulations. picture 1. direct influence/dependence map picture 2. direct influence graph as a result, if we want to identify who is influencing what variables, we can see from figure 2 that awareness, services, and symbols greatly impact the materials. the materials are also heavily reliant on geography and human resources simultaneously. reputation, expenses, awareness, and human resources all significantly impact the asset variable. infrastructure, materials, and location all have a significant impact on variable symbols. variables affecting government policy are significantly influenced by knowledge and resources. the following factors greatly impact hr variables: awareness, materials, location, reputation, and assets. agbioforum, 24(2), 2022 | 21 arieftiara, nawir and julianisa. — halal food certification, financial performance, and sustainability reporting 8. conclusion the outcome demonstrates that halal certification affects sustainability reporting. the study contributes in two ways. first, it looks into how the halal certification affects the caliber of sustainability reporting. second, the outcome offers concrete evidence of how the halal certification affects sustainability reporting from the perspectives of malaysia and indonesia. the implication is that the halal certificate ensures that the f&b enterprises' operational procedures and ingredient lists comply with sharia norms and give full consideration to the future well-being of the next generation from malaysian and indonesian viewpoints. according to micmac's analysis, the company does not strictly provide sustainability reporting because it has a reputation and a halal certificate. reporting financial success is deemed acceptable in this case. consumers place much greater emphasis on a company's halal certification than on its sustainability reports. the government is still seen as less severe in implementing this policy. the fact that many businesses continue to lack both the halal certificate and sustainability reporting demonstrates this. references ab latiff, j. 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teknologi malaysia. & faculty of public administration, hengshui college, china email: 15830166900@163.com https://orcid.org/0000-0003-2187-886x siti hasliah salleh razak faculty of technology and informatics, universiti teknologi malaysia, malaysia email: sitihasliah@utm.my https://orcid.org/0000-0003-2686-1936 urbanization is still widely perceived as a social and economic issue that needs to be tackled immediately yet the fact of the matter is that no country has made to the list of developed nation without experiencing rapid urbanization. the basic purpose of this research study is to measure the impact of urbanization on food production and the residential land disputes from a global perspective. this research study is based on primary research and for this purpose, the study uses a set of pertinent questions related to food production and residential land disputes. these specific questions are answered by 100 plus respondents through an online surveying method. this research study uses smart pls software for data analysis. the study employs various methods for data analysis purposes; these include the one-way anova test analysis, the t-statistical analysis and the regression test analysis. urbanization is identified as the main independent variable whereas food production and the residential land disputes are both used as dependent variables. the results from the above-mentioned analysis reveal that urbanization is negatively and significantly related to residential land disputes globally. however, the urbanization is found to be positively related with food production at the global level. key words: urbanization (u), food production (f.p.), residential land disputes (rld), global perspectives (g.p.). 1. introduction in the vast majority of countries, people migrate from rural to urban areas to avail various opportunities such as employment, education, healthcare etc. the migration of individuals and families helps them build their careers and improve their lifestyle (kuddus et al., 2020). however, migration of rural populations from villages to cities also has some negative impacts, especially in the asian region as the countries in the region have suffered considerably due to the movement of people in urban areas. many skilled and low-skilled individuals move to cities because they want to earn more in order to effectively meet their individual and family needs. on the other hand, many people in the cities shift with their families because they want to provide them with quality educational, medical and recreational facilities. similarly, many people move to urban areas to establish their businesses and build successful careers. in short, we can say that the unequal distribution of health, employment, education, infrastructure, and recreational facilities is a major driver of urbanization (jabeen et al., 2017). however, many scholars believe that the administration creates challenges for farmers by minimizing the cropland. the land in cities is widely used for residential and industrial purposes. to fulfill the needs of thousands of people in cities, governments in different countries has been extending the area of cities so that a maximum number of people can avail these opportunities. however, it is quite difficult to satisfy the basic needs of thousands of people residing in a city due to the limited availability of resources. for example, the soil is a critical element for the production of food. the land in cities is widely used for residential and property purposes. therefore, in essence, there is inadequate land available for the production of food. for this reason, the occupation of land around the cities has become a common practice these days. this explains why the global share of farmers has been decreasing very rapidly. several contenders are competing for land use. at the same time, climate change and other environmental problems have also contributed to decreased land production capacity. this represents an alarming situation because the world population is predicted to rise in the coming years, which means that it will become increasingly difficult to manage the demands for food for millions of people around the world. extreme and unforeseeable events such as flooding, droughts, and breakouts are other factors influencing the production capacity of the land (hussain et al., 2018). apart from that, the movement of people from one area to another has helped them fulfill their needs. nevertheless, substantial portion of the population in urban areas continues to experience poverty and the enduring lack of access to basic facilities. at the same time, it is particularly challenging for the government to create adequate opportunities for every individual living in urban areas (jarah et al., 2019). the number of crop producers have been decreasing very rapidly. the global land production has also been decreasing because people are investing in the housing and industrial sectors. it is each country's government’s responsibility to provide maximum opportunities to farmers and make effective policies with a view to increase mailto:15830166900@163.com https://orcid.org/0000-0003-2187-886x mailto:sitihasliah@utm.my https://orcid.org/0000-0003-2686-1936 agbioforum, 23(1), 2021 | 43 zhuo and salleh. — the impact of urbanization on food production and residential land disputes (a global perspective) the cropland as food is the main requirement for the physical survival of human beings. the world's population has been increasing at an unprecedented rate, and the state needs to effectively fulfill the need or demand for food. the residential and industrial sector contribute to the development of economy, but the development of crop sector is essential for the survival of human beings on this planet. the occupation of surrounding city areas is not a good trend because, in this way, crop producers suffer a lot. nevertheless, many countries around the world are involved in this practice. this practice is also not beneficial for food producers and local food share. furthermore, urbanization is expected to make use of agricultural lands to fulfill the market demand for housing. however, in third world countries, the urban areas tend to develop without any strategic planning due to the absence of policies designed to provide the framework for an organized and purpose-built blueprint for urbanization. this unplanned expansion or urban sprawling of cities due to urbanization have several costs attached with it including an increase in street crime, illegal occupation of land etc. furthermore, the migration of people to cities has become a widespread problem worldwide, which needs to be addressed as soon as possible to avoid future challenges (garcia-ayllon, 2018; li, 2017). the current research has been mainly conducted to determine the impact of urbanization on crop production and residential land disputes and practices. the study is beneficial because it highlights the impact of urbanization on the production capacity of cropland. there are also some other related studies conducted on this topic. most of these researchers emphasize on the negative aspects of urbanization. moreover, this research is practically useful because they provide several suggestions and recommendations to remove the problems due to urbanization. the paper utilizes several analytical tools to test the relationship between urbanization, food production and land disputes by making use of primary data. the data is collected from online survey tools and the findings are made from a global perspective. the analysis is based on several methods from 100 global respondents and reveals the following two insights. first, urbanization is negatively and significantly related to the land disputes globally. in other words, increase in urbanization leads to more land disputes. these results are not surprising and are in line with the extant literature on urbanization and land disputes. second, and more importantly, urbanization is positively and significantly related to food production. more precisely, increase in the urbanization is positively associated with the food production such that the food production increases with the increase in the level of urbanization in countries. these results are not surprising and are in line with the existing literature on the topic. in the next section, a literature review is provided followed by an overview of the data collection process and methodology in section 3. the section 4 presents the results of the analysis followed by an in-depth discussion of results in section 5. finally, the authors provide the conclusion of the paper in section 6. 2. literature review there are two key aspects of today’s rapid expansion in the urbanization. first, there is a manyfold increase in the number of large cities globally. second and more noteworthy is the increase in the size of these urbanized cities. back in 1800, only london and beijing were the two cities in the world with more than a million or more residents. as of 2018, there are now a whopping 467 cities in the world with more than a million people. in india alone, as per the last census that happened in 2011, there are 46 cities with more than a million residents. in this section, we go through the literature on urbanization and identify the existing gaps to formulate the current research hypothesis. m. amin (2018) states that the population in urban areas has been gradually increasing. most people are shifting to urban areas to improve their living style. therefore, the population in urban areas will increase by 1.1 billion in the coming years. urbanization has become a common issue in western countries, asia, and africa since the 1950s. a research conducted by yale university in 2016 also shows how cities are developed very rapidly during the period 37002000 b.c. the main reason behind the development of urban areas is the availability of a range of facilities. these structured facilities characteristics of urban areas include residential, commercial, infrastructural, administrative, recreational, and industrial services. gong et al. (2018) identifies three main perspectives to understand the causes or drivers of urbanization: western liberal, marxist capitalist, and ecological. the western liberal believes that migration in urban areas is the significant cause of urbanization. people who belong to rural areas shift to urban areas because they find better jobs opportunities there. this so-called push and pull factors contribute to an increase in the population in urban areas. however, the modernization theory believes that industrial employment attracts people in urban areas. in asian and african countries, employment is the main cause of rapid migration towards urban areas. on the other hand, marxist capitalists believe that capitalism is the main driver of urbanization. the capitalist always desires to increase their income, and for this purpose, they equipped multinational corporations. furthermore, ernest burgess proposed the ecological theory in 1920. the theory communicated that a city is comprised of several sections. however, the space in cities is limited, and competition between different sectors becomes increasingly challenging with the passage of time. cui et al. (2019) argues that urbanization has several economic, health, and environmental effects. the agbioforum, 23(1), 2021 | 44 zhuo and salleh. — the impact of urbanization on food production and residential land disputes (a global perspective) migration of people from one place to another also has number of social effects. most skilled and low-skilled workers migrated to urban areas for economic opportunities. an increase in the number of individuals has raised a new set of urban problems. besides, the temperature in urban areas is rising due to domestic and industrial heat. a report presented by the united nations predicts that the population in cities will rise to 2.4 billion by 2050. an increasing number of individuals will directly contribute to changing environmental conditions across the globe. moreover, inequality in society and increased contagious diseases are other issues arising because of urbanization. furthermore, the expansion of land and residential areas has reduced the cropland, which is alarming to satisfy the need for food. therefore, the stakeholders in the government and private organizations should carefully notice the situation and provide great opportunities for farmers to produce more foods and satisfy the population's needs appropriately. in addition, better policies can help manage land disputes effectively and appropriately (zulu et al., 2017). lin et al. (2018) demonstrates that urbanization has directly influenced the source of crop production. healthy soil is the main source of the food production system. at the same time, healthy soil is also important for maintaining environmental quality and health of living creatures. however, an increase in population has reduced the number of global producers. scholars believe that the urban population will rise two-third by 2050. this means an increase in the contenders that are competing for crop production. these include cattle feed, biofuels, and human beings. apart from that, the clothing industry also requires fiber for its products. moreover, the change in climate and loss of biodiversity has also contributed to increased crop production, which is an additional challenge for the next generation's continued survival (gao et al., 2020). ha et al. (2021) highlights how food security has become a significant issue globally. the global cropland has reduced by 1.8 to 2.4 %. the asian and african countries are the ones to predominantly suffer from this problem because people in these countries are migrating to rural areas in order to fulfill their social and financial needs. for this reason, policymakers and scholars are observing the situation very carefully because they understand the globewide problems resulting from a decrease in cropland. it is believed that governments of different countries should expand cities. recent studies have discussed that by 2030, crop production in china will decrease by 8.7 % (abdul et al., 2020; peerzado et al., 2019). the main reason is that more land in cities is used for residential purposes. many countries are also expanding their cities by occupying surrounding lands to allow several people to migrate to cities. this practice has been negatively influencing crop production and creating challenges for the population in the long run. barthel et al. (2019) shows that the overpopulation has become a significant issue in urban regions worldwide. the way that population has been rising in urban areas means that additional land is required for each sector. the effective use of land is essential because land is the primary source of food, shelter, and fiber. therefore, the role of land is indispensable in satisfying the basic needs of the population. for instance, pakistan is recognized as an agricultural country. however, the country has also been facing the problem of urbanization. the cities are continuously spreading and sprawling, and agricultural land on the other hand, is decreasing very rapidly. this practice is potentially dangerous because reducing cropland can lead to food security globally (kuddus et al., 2020). (peerzado et al., 2019) highlight how urbanization is closely linked with the food system. the migration of many people in cities has influenced the supply and demand for food. several studies have been conducted to determine the role of urbanization in enhancing economic growth and the per capita income of people. while migrants are able to earn good money, they are forced to consume processed and preserve food. an increase in rural to urban migration reduces the amount of agricultural land and water availability and increases transportation costs. some scholars believe that urbanization supports the accessibility and utility of food by raising the per capita income. on the other hand, some scholars believe that urbanization and other factors significantly contribute to food insecurity. in this way, urbanization has been directly influencing the agricultural landscape. therefore, it is suggested that governments in different countries should focus on enhancing framers' performance and improving food security policies to manage the supply and demand for food effectively. at the same time, the urban society must also link food issues with residential issues so that people can get a variety of food. moreover, the government should facilitate farmers in developing food diversification and generating good benefits from the food business (wang et al., 2021). putra et al. (2020) state that urbanization has negatively influenced developing countries. these countries are suffering from a widespread problem of the degradation of natural habitats. at the same time, urbanization has disrupted the hydrological system in several developing countries. to fulfill the need of several people in urban areas, the government and private organizations have been investing in residential properties instead of increasing the amount of cropland. apart from that, additional factors, such as climate catastrophes, also influence the production capacity of the land. this is why city areas are suffering from natural disasters which cause serious physical and economic losses (barthel et al., 2019). colozza et al. (2019) believe that land shortage or scarcity is common in city areas. the growing population in city areas is the major cause of urban land conflicts. due to the industrial sector revolution, many people are migrating to agbioforum, 23(1), 2021 | 45 zhuo and salleh. — the impact of urbanization on food production and residential land disputes (a global perspective) cities because they must manage their household expenses. urban centers provide better and more job opportunities to the population and facilitates in improving their lifestyle. individual and/or families are attracted to city areas because of several basic facilities and life amenities they cannot get in rural areas. pribadi et al. (2017) state that many people migrate to urban areas for appropriate housing. it's particularly difficult for launch administration to manage the need for an increased number of people effectively and efficiently. informal and unplanned settlements in several asian countries have intensified the challenges for the government. it has become challenging for the state to ensure provision of water, electricity, and sanitation facilities to all citizens. individuals in urban areas are also suffering from a critical shortage in housing. abu hatab et al. (2019) discuss how to provide maximum housing facilities to people, many countries have expanded cities so that more people can get adequate residence. moreover, farmers suffer immensely in city areas because they have limited skills, and urban areas are mostly dedicated to residential and industrial activities. on the other hand, city areas also provide higher income job opportunities so that farmers cannot survive in this setting. more interestingly, the rural areas are mainly allocated for farmers, and farmers can use different techniques to increase agricultural production. figure 1: overview of the literature on the related topic the figure 1 describe that overview of literature related to research the total number of papers used related to the energy population, population urbanization, and energy urbanization. according to the figure 28 total paper and 7 is causal relationship related to the energy population. the 21 is total papers and 3 is causal relationship the 34 papers is energy urbanization and 6 is causal relationship. the figure 1 describes that relationship between the variables. given the gaps identified in the existing literature, this paper seeks to investigate the link between urbanization and the land disputes. moreover, this paper also investigates the link between urbanization and food production. both investigations are carried out at the global level with 100 respondents from several countries. 3. data and methodology the research study studies the impact of urbanization on food production and residential land disputes from a global perspective. the study based on primary data analysis aimed at measuring the effect of urbanization on food production related to land disputes. for this purpose, the study used different question related to the research topic and these questions are administered among 100 plus respondent participants. these questions were divided into five scales: strongly agree, agree, neutral, disagree, and strongly disagree 1,2,3,4,5. for measuring the data, smart pls software generates one-way anova test analysis, regression analysis, correlation coefficient analysis, the t-statistical analysis, chi-square analysis, and descriptive statistical analysis. table 1 presents list of variables. table 2 presents a one-way anova test analysis between the dependent and independent variables with a view to measure the impact of urbanization on food production and residential land disputes (a global perspective). the results represent the between the group values, within the group values and the total values. the agbioforum, 23(1), 2021 | 46 zhuo and salleh. — the impact of urbanization on food production and residential land disputes (a global perspective) results describe the sum of square values, the df values, the mean square values, the f-statistic, and the significant level of each variable. for example, the residential land disputes are dependent variables, its sum of square values is 3.169, 70.221, and 73.390, respectively. the mean square value is 1.056, its f statistical value is 1.444, and its significant level is 0.23, which means a 23% significance level. the growth rate of food production is another dependent variable according to the results. its sum of square values is 3.404, 86.596 and that 90.00 the mean square values is 1.135, its fstatistical value is 1.25, and its significant level is 0.293 which shows a 29% significance level. food production is another dependent variable. its sum of squared values is 2.74, 70.24, and 72.99, respectively. the results indicate that mean square values are 0.916, 0.732 shows 91% and 73% average values the f-statistical value is 1.251, and its significant level is 0.296, respectively shows a 29% significance level. table 1: independent and dependent variables sr. no descriptions notations 1 independent variables iv 2 urbanization u dependent variable dv 3 food production ufp 5 poultry meat pm 6 growth rate of food production grfp 8 residential land disputes rld 3.1 theoretical model table 2: one-way anova anova sum of squares df mean square f sig. food production between groups 2.747 3 .916 1.251 .296 within groups 70.243 96 .732 total 72.990 99 poultry meat between groups 1.217 3 .406 .650 .585 within groups 59.943 96 .624 total 61.160 99 growth rate of food production between groups 3.404 3 1.135 1.258 .293 within groups 86.596 96 .902 total 90.000 99 residential land disputes between groups 3.169 3 1.056 1.444 .235 within groups 70.221 96 .731 total 73.390 99 3.2 ratio analysis urbanization residential land disputes growth rate of food production poultry meat food production agbioforum, 23(1), 2021 | 47 zhuo and salleh. — the impact of urbanization on food production and residential land disputes (a global perspective) table 3: ratio statistics for urbanization / food production ratio statistics for urbanization / food production group price related differential coefficient of dispersion coefficient of variation median centered strongly agree 1.133 .367 78.5% agree 1.288 .693 98.1% neutral 1.153 .598 100.2% disagree 1.231 .564 65.1% overall 1.216 .586 92.7% 4. results and discussions table 3 presents the ratio analysis between urbanization and food production with the help of price-related differences, the coefficient of dispersion, and the coefficient of variation. the results are divided into five groups. the price-related differential values are 1.133, 1.288, 1.153, 1.231, and 1.216, respectively. according to the results, the coefficient of dispersion values is 0.367, 0.693, 0.598, 0.564, and 0.586 shows that dispersion values. the coefficient of variation presents that 78.5%, 98.1%, 100.2%, 65.1%, and 92.7%, respectively, which shows median centered effect in between urbanization and food productions. figure-2 residential land disputes the figure 2 describes that residential land disputes related to the frequency, the food production and urbanization. the figure defined that strongly agree, agree, neutral, and disagree regarding urbanization performance of food production. the vertical side presents that frequency 0 to 10 in the horizontal side present the rates of urbanization 0.00 to 5.00 respectively. table 4 model summary model r r square adjusted r square std. error of the estimate 1 .196a .038 .029 .84857 a. predictors: (constant), urbanization agbioforum, 23(1), 2021 | 48 zhuo and salleh. — the impact of urbanization on food production and residential land disputes (a global perspective) table 4 presents the model summary related to the regression model with the help of r values, the r square values, adjusted r square, and the standard error of the estimated values. the constant predictor is urbanization. its value of r is 0.196, and the r-square is 0.038, the adjusted r square value is 0.029, and the standard error of the estimated value is 0.8485, respectively, showing an 84% error of the estimated rate. table 5 anova model sum of squares df mean square f sig. 1 regression 2.823 1 2.823 3.921 .050b residual 70.567 98 .720 total 73.390 99 a. dependent variable: residential land disputes b. predictors: (constant), urbanization table 5 presents the anova test analysis regarding the regression analysis. in this research study, the residential land disputes are considered a dependent variable, and urbanization is a predictor variable. its sum of square values is 2.823, 70.567, and 73.390, respectively. its mean square values are 2.823, and that 0.720 shows 72% average mean values. the f-statistic value is 3.921, which means there is a positive relationship between residential land disputes and urbanization. its significant level is 0.050, which means there is a 5% significant level between them. table 6: coefficients of regression analysis model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) 2.698 .213 12.638 .000 urbanization -.180 .091 -.196 -1.980 .050 a. dependent variable: residential land disputes 5. regression analysis table 6 presents a regression analysis between residential land disputes and urbanization. the results show unstandardized coefficient values, the standardized coefficient with the beta, and standard error values. furthermore, the results indicate the t statistical values and point to a significant level of urbanization and residential land disputes. the value of beta is 2.698 and 0.180. the standard error values are 0.213 and 0.091, respectively; the t statistic value is -1.980 and its significant level is 0.050, which means an inverse relationship between urbanization and residential land disputes. however, there is still a significant relationship between them at a 5% significant level. figure-3 histogram analysis of residential disputed and urbanization the above figure 3 present that bar graphs related to the residential land disputes and urbanization with the values agbioforum, 23(1), 2021 | 49 zhuo and salleh. — the impact of urbanization on food production and residential land disputes (a global perspective) the strongly agree, neutral, and disagree related to the food production. table 7 presents the correlation coefficient analysis amongst all the variables understudies including independent and the dependent variables. the results indicate the pearson correlation value, the significant level, and the number of observations. the residential land disputes is a dependent variable and there is a negative relation with the urbanization, food production, poultry meat, and the growth rate of food production. 5.1 correlation coefficient table 7: correlations urbanization food production poultry meat the growth rate of food production residential land disputes urbanization pearson correlation 1 .027 .051 .102 -.196 sig. (2-tailed) .790 .616 .313 .050 n 100 100 100 100 100 food production pearson correlation .027 1 .078 -.091 -.283** sig. (2-tailed) .790 .440 .366 .004 n 100 100 100 100 100 poultry meat pearson correlation .051 .078 1 .065 -.087 sig. (2-tailed) .616 .440 .522 .390 n 100 100 100 100 100 growth rate of food production pearson correlation .102 -.091 .065 1 -.057 sig. (2-tailed) .313 .366 .522 .576 n 100 100 100 100 100 residential land disputes pearson correlation -.196 -.283** -.087 -.057 1 sig. (2-tailed) .050 .004 .390 .576 n 100 100 100 100 100 **. correlation is significant at the 0.01 level (2-tailed). its values are -0.196, -0.283, -0.087, and -0.057, respectively. the growth rate of food production is another dependent variable and there is a positive relationship with urbanization at the rate of 0.102. its significance level is 0.313. finally, poultry meat is considered a sub-variable of food production; it also shows a positive relationship with urbanization at a rate of 0.051. table 8: descriptive statistics analysis n minimum maximum mean std. deviation urbanization 100 1.00 4.00 2.1500 .93609 food production 100 1.00 4.00 1.9900 .85865 poultry meat 100 1.00 5.00 2.2200 .78599 growth rate of food production 100 1.00 5.00 2.6000 .95346 residential land disputes 100 1.00 4.00 2.3100 .86100 valid n (list-wise) 100 table 8 presents the descriptive statistics analysis of all variables including urbanization, food production, residential land disputes, etc., for measuring the impact of urbanization on food production and residential land disputes (from a global perspective). the number of observations is 100, its overall minimum value is 1, and the maximum value is five. the mean value of urbanization is 2.1500. its standard deviation value is 0.936 which means that 93% of the values deviate from the mean. the average value of food production is 1.9900 and its standard deviation value is 0.8586, respectively. the growth rate of food production shows 2.600 average values, and the standard deviation value is 0.9534, respectively. residential land disputes show 2.31 values of mean, and their standard deviation is 0.86100 respectively, shows that 86% deviate from the mean. the figure 4 represents the residential land disputes the dot point present that observed linear values. the horizontal side shows the urbanization level in the global perspectives. agbioforum, 23(1), 2021 | 50 zhuo and salleh. — the impact of urbanization on food production and residential land disputes (a global perspective) figure-4 residential land disputes at dot point: figure-5 tree analysis the figure 5 present that urbanization node 0 the category regarding strongly agree, agree, neutral, disagree its percentage are 32%, 26%, 37%, 5% respectively. table 9 risk estimate std. error .630 .048 growing method: chaid dependent variable: urbanization table 9 describes the risk factor in the research study with the help of estimated values and standard error. the estimated value is 0.630, and its standard error value is 0.048 5.2 chi-square test table 10 test statistics urbanization food production poultry meat the growth rate of food production residential land disputes chi-square 23.760a 28.720a 81.100b 47.200b 27.280a df 3 3 4 4 3 asymp. sig. .000 .000 .000 .000 .000 a. 0 cells (0.0%) have expected frequencies less than 5. therefore, the minimum expected cell frequency is 25.0. b. 0 cells (0.0%) have expected frequencies less than 5. therefore, the minimum expected cell frequency is 20.0. agbioforum, 23(1), 2021 | 51 zhuo and salleh. — the impact of urbanization on food production and residential land disputes (a global perspective) table 10 presents the chi-square test analysis of all variables included urbanization, food production, poultry meat, the growth rate of food production, and residential land disputes. the chi-square values are 23.760, 28.720, 81.100, 47.200, and 27.280, shows positive rates, the asymp significant level is 0.000, which shows a 100% significant level. table 11 one-sample test test value = 0 t df sig. (2-tailed) mean difference 95% confidence interval of the difference lower upper urbanization 22.968 99 .000 2.15000 1.9643 2.3357 food production 23.176 99 .000 1.99000 1.8196 2.1604 poultry meat 28.245 99 .000 2.22000 2.0640 2.3760 growth rate of food production 27.269 99 .000 2.60000 2.4108 2.7892 residential land disputes 26.829 99 .000 2.31000 2.1392 2.4808 table 11 describes the one-sample test analysis of all variables. the results indicate the value of t statistics, the significant level, the mean difference values and results presented at the 95% confidence interval of the difference at lower and upper level. the values of urbanization are its t-statistical value is 22.968, its significant level is 0.000, its mean difference value is 2.15 its lower interval is 1.96 and its upper interval is 2.33 respectively. figure-6 growth rate of food production similarly, the food production is the other indicator, its t statistic value is 2.176, the mean difference value is 1.99 its lower interval is 1.8196 and its upper interval is 2.16. the residential land disputes consider as dependent variable its t-statistical value is 26.82 its mean difference value is 2.31 its lower interval is 2.13 and upper interval values is 2.48 shows positive 95% confidence interval of the difference level. the above figure presents that growth rate of food production and urbanization in the form of bar lines. the bar lines present that strongly agree, agree, neutral, disagree, and strongly disagree. according to the figure the highest bar lines of strongly agree. agbioforum, 23(1), 2021 | 52 zhuo and salleh. — the impact of urbanization on food production and residential land disputes (a global perspective) table 12 model summary and parameter estimates dependent variable: residential land disputes equation model summary parameter estimates r square f df1 df2 sig. constant b1 linear .038 3.921 1 98 .050 2.698 -.180 the independent variable is urbanization. the above table describes the model summary related to the parameter estimates and its r-square value is 0.038. its f-statistic value is 3.921, its significant level is 0.050 which indicates a 5% significance level. the parameter estimates values shows 2.698 and -0.180 respectively present that constant value and b1. figure-7 growth rate of food production related to residential disputes the above figure represents the growth rate of food production in the form of graphs wherein the residential land disputes are shown on the vertical side and the growth rate of the food productions is shown on the horizontal axis. 6. discussions a number of economists and policymakers are of the view that rapid urbanization is a key issue that needs to be tackled immediately before it starts negatively affecting the sustainable economic growth of a country. this is despite the fact that no single nation has progressed without undergoing urbanization. in fact, there is no single developed country in the globe today that would have made to the current list of developed nations without experiencing urbanization. over the course of more than past 50 years, there seems to be strong link between urbanization and the level of economic development. not being able to incentivize urbanization, the current list of poor nations remains stuck in the lower and the middle income for ages. in other words, many policies and academic articles have highlighted urbanization as the key differentiator between rich and the poor countries. urban regions are equipped with several advantages that can improve the living conditions of a society, be it employment opportunities, access to education, access to healthcare etc. at a global level, more than 55% of the world population lives in urban areas and the numbers are going at a rapid pace. there are distinct changes in several urbanization aspects today as compared to last decade or so. for instance, now there is a rapid increase in the urbanization rate and many cities are even double in size now of what they used to be a decade ago. however, these urbanization figures do not reflect much on the large disparities when it agbioforum, 23(1), 2021 | 53 zhuo and salleh. — the impact of urbanization on food production and residential land disputes (a global perspective) comes to social, economic and the political changes that are responsible for it. the term urbanization is also utilized for the expansion of metropolitan land uses. in this paper, the definition of urbanization implies a change in settlement designs from scattered to thick settlements. in contrast, a significant part of the expansion of metropolitan land use is the consequence of a shift from thick to more scattered settlements. in actuality, the term urbanization is being utilized to allude to two restricting spatial changes in settlement patterns. these settlement patterns will most likely have conflicting effects, for instance, on the availability of land for agricultural purposes. in 1900, there were 6.7 country occupants for every metropolitan inhabitant; today, the ratio is less than one, and projections suggest that by 2025, the ratio will be close to three metropolitan tenants to two provincial occupants. in a global setting, the agricultural sector has contributed to meeting the wants of a rapidly expanding labor force which is not in the food sector. rapid changes in food demands more energy and leads to greenhouse gas emission-intensive food. this research indicates the significant effect of urbanization on food production and residential land disputes from a global perspective. the results show a significant and inverse impact of urbanization on residential land disputes. moreover, the findings also indicate a positive and significant impact of urbanization on food production in the global setting. in this research, various data analysis methods are used including descriptive statistics, correlation coefficient analysis, the one-way anova test analysis, and the tstatistical analysis. 7. conclusion less than ten decades ago, most of the slums in north american and the european regions reported a mortality rate amongst the infants and the children as poor as the some of the poor countries in the world today. the problems were notably like what is experienced by poor nations today such as malnutrition, lack of medical facilities, and the education infrastructure. there was widespread discrimination and the continuous exploitation of the blacks, labor class, women, and marginalized sections of the society. however, these scenarios have changed with the focus on improving the key institutions with special focus on social, economic, and political institutions. the rural to urban migration flows that cause urbanization are generally a reaction to the limited source or options of generating incomes. however, some relocation streams may be viewed as special cases—for example, development in places where retirees decide to live or in vacationer resorts. more precisely, the migration from rural to city areas reflects the willingness to grab employment opportunities created because of potential tourist influx and the retirees leaving the cities. a close relationship exists between urbanization, political strength, and financial well-being. monetary accomplishment for most urban areas might rely more upon achievement in worldwide business sectors than 50 years prior to today. although it bears to note that city rivalry for business sectors past public limits has impacted most urban communities for a long time. this explains why responsible metropolitan governments have impressive significance for monetary achievement. research concludes that there are inverse relations in between urbanization and residential land disputes but there is a significant relationship between them. the results show that there are positive impacts in between urbanization and food production from the global perspectives. how urbanization is viewed has a big impact on how it is likely impact on food and agriculture in the future. as a driver of progress, it is generally acknowledged that extrapolating historical patterns provides us with a plausible depiction of the world's future metropolitan populace. this is supported by forecasts for all countries' metropolitan populations and degrees of urbanization up to 2025. apart from the countries that have been designated as 100 per cent metropolitan, these suggest that almost all countries continue to urbanize. within this suspicion of nearly all-inclusive urbanization expansions, there are usually comments to urbanization being counter-intuitive since it appears to pay little attention to monetary conditions. there is also uncertainty about how to incorporate models of de-urbanization into this broad picture of a world in which nearly all countries are becoming increasingly urban. at the global level, the urbanization level is expected to keep on increasing at a rapid pace. most of the urbanization is expected to happen in low and the middleincome countries and this migration can be attributed to the relatively low level of income generation opportunities available in rural areas. urbanization is frequently considered to adversely affect horticulture, such as the deficiency of rural land to metropolitan extension and a metropolitan inclination in broad daylight subsidizing for framework, administrations, and endowments. lowand middle-income countries that do not achieve financial prosperity will experience little urbanization. in an emergency, however, they may deurbanize by increasing the amount of people working in gardening, ranger service, and fishing. this is only fair in countries where elements of the urban population retain linkages to rural areas, allowing people to reintegrate into rural jobs. urbanization is expected to make use of agricultural lands to fulfill the market demand for housing. however, in third world countries, urban areas have developed without any strategic planning due to the absence of policies designed to provide a proper framework for an organized way of urbanization. this unplanned expansion of cities due to the urbanization has several costs attached agbioforum, 23(1), 2021 | 54 zhuo and salleh. — the impact of urbanization on food production and residential land disputes (a global perspective) with it as it can potentially lead to a rise in street crimes and illegal settling, among other negative impacts. as for environmental change, it is hard to anticipate likely effects because these largely rely upon whether worldwide arrangements can decrease the drivers of ozone harming substance outflows in a timely and efficient manner. environmental change relief presents many difficulties to horticulture to decrease ozone harming substance emanations and lucky to be metropolitan inhabitants to move to less carbon-concentrated eating regimens and ways of life. on the other hand, an inability to diminish ozone-depleting substance 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(2017). urbanization, housing problems and land conflicts in zambia. human geography, 69(1), 73-86. doi:https://doi.org/10.4200/jjhg.69.01_073 http://dx.doi.org/10.1016/j.jrurstud.2017.08.001 http://dx.doi.org/10.1016/j.jrurstud.2017.08.001 https://doi.org/10.3390/su12229550 https://doi.org/10.1038/s43016-021-00228-6 https://doi.org/10.4200/jjhg.69.01_073 agbioforum, 23(2): 143-152. ©2021 agbioforum land use conversion pattern and food security for sustainable food land direction in karanganyar regency, indonesia rochmat martanto sekolah tinggi pertanahan nasional, yogyakarta, indonesia email: rochmatmartanto@stpn.ac.id karanganyar regency is a food granary (rice surplus area), however at the moment, a large portion of agricultural land is undergoing land-use conversion, which may result in a drop in rice output and, if not regulated, a negative impact on food security. the research purpose is to analyze the distribution pattern of land use conversion and the level of food security in karanganyar regency, central java province, to determine a sustainable food land direction. the distribution pattern of agricultural land conversion to non-agriculture was examined using the average closest neighbor (ann=z-score), while data on agricultural land conversion to non-agriculture were gathered using landsat satellite imagery. due to the fact that the population is distributed over all sub-districts, all sub-districts are observed as study units (survey method). the study's findings are based on the fact that the z-score value (nearest neighbor spread index) from the ann analysis is -2.553, indicating that the pattern of land-use conversion at the regency level is clustered, whereas at the sub-district level, there are three clustered sub-districts (clustered), three random sub-districts (random), and eleven dispersed sub-districts. at the regency level, karanganyar regency was a rice surplus area till 2019, with a population of 886519 people and a capacity to eat food (padi = rice) of up to 939795 people, leaving 53276 persons (939795-886519). (surplus area). six sub-districts have a large surplus, eight have a modest surplus, and three at the sub-district level. the research results indicate that three sub-districts are appropriate for conversion to regional development areas, while rice barns are located in eight sub-districts and the remainder as buffer areas in as many as six sub-districts. a buffer zone is an area (district) that can be transformed under highly rigorous conditions to achieve long-term food security. keywords: land-use conversion, rice surplus, food consumption i. introduction the land is the primary driver of regional development. as an agricultural country with a more significant proportion of agricultural land and workforce than other sectors, indonesia is a cornerstone of national agriculture growth, particularly food supply. to achieve national food security, the availability of locally grown food (regional food security) is critical. the route to national food security is becoming increasingly challenging due to population expansion, increased economic activity, and rising food consumption in numerous regions. additionally, it can be noted that there are still many locations that are unable to offer or meet their local food needs. this is due to various variables, including land conversion, population density, and agricultural production. 2020 (karjoko, winarno, rosidah, & handayani, 2020). land-use conversion is a frequent occurrence in contemporary human life; it occurs because humans, in addition to requiring food, require land to sustain habitation (satria, falatehan, & beik, 2018). the requirement for land as part of the available space for human habitation on earth enables humans to carry out their activities. the land is a fundamental requirement for human survival on biological (biotic) and physical (abiotic) levels, as well as for sustainable development (soemarwoto, 1995). human beings require land to produce plants to meet their food requirements, but the land is also needed for the board (housing). food and board are two conflicting variables in demand for land, as food sustainability is always degraded by the need for shelter (housing). the most important difficulty confronting agriculture is the loss of agricultural land owing to human activities, particularly settlement and infrastructure expansion in houses, roads, dams, and industrial regions, to name a few (sudarwanto & handayani, 2019). continuous development results in agricultural land being converted to non-agricultural use. conversion of land use is occurring at an alarming rate throughout indonesia, including bali (akhmaddhian, hartiwiningsih, & handayani, 2017). such land conversion will result in a loss of agricultural land, as the conversion process is more concerned with sustaining indonesia's infrastructure than maintaining agricultural land (soediro, handayani, & karjoko, 2020). the conversion of agricultural land in indonesia is quite concerning, as it tends to increase year after year, resulting in a decrease in agricultural land. for example, in 2012, indonesia had 40,157,738 hectares of agricultural land, which was reduced to 39,475,694 hectares, or a 1.69 percent decrease, in 2013 (leonard, pakpahan, heriyati, & handayani, 2020). agbioforum, 23(2), 2021 | 144 rochmat martanto — land use conversion pattern and food security for sustainable food land direction in karanganyar regency … existing agricultural land for food crops, particularly rice fields, is critical to meeting the food needs of indonesia's 258.7 million people in 2017, despite the country's population growing at a rate of about 3.4 million people per year and rice fields being converted to non-agricultural land at a rate of about 96500 ha per year (mulyani, nursyamsi, & syakir, 2017). with the growth of indonesia's population, the demand for land has increased for various purposes, including food production and shelter. increased population pressure and economic and industrial growth have resulted in unregulated land-use competition in various sectors, including agriculture. this underlines the importance of planning and managing land resources rationally and sustainably following their carrying capacity. agricultural land resources are incredibly beneficial on a socio-economic and environmental level. as a result, the conversion of agricultural land to non-agricultural uses will affect numerous facets of development. the benefits of agricultural land can be broadly classified into two categories: there are two types of benefits: indirect and direct. indirect benefits refer to various activities that occur as a result of landowners' exploitation activities. one example is the preservation of biodiversity or the existence of particular types of plants whose benefits are unknown but will be critical in meeting human needs in the future (natural and environmental conservation). direct benefits are also known as usage values. these advantages are generated from exploitation or farming activities on agricultural land resources and so reflect the area's socioeconomic existence. however, the desire of humans to increase their economic well-being does not imply that they should forgo natural conservation (juhadi, 2007; munasinghe, 1992). agricultural cultivation (land productivity) is the safest land use because it maintains the environmental ecosystem; nonetheless, several environmental constraints must be considered for regional development to be sustainable. avoiding environmental change through landuse conversion is likely to slow urbanization. in rural areas, farmers' lack of work opportunities might stimulate urbanization, which frequently results in various socioeconomic problems and ultimately encourages land-use conversion (soerjani, ahmad, & munir, 2001). land as a physical entity is separated into two (two) components, those about the (legal) rights to land and those about its usage (its breadth). if a transaction is conducted on the property in terms of location, numerous other characteristics (in addition to the area) are required to represent the land as a requirement for housing. rapid development and population increase are driving forces behind the increasing demand for land in both urban and rural areas, which would result in a reduction in food security in the area. numerous studies have demonstrated that the conversion of agricultural land influences the deterioration in food security to non-agricultural land and that the more area converted, the lower the food security (astuti, 2011; irawan, 2005; sihaloho, dharmawan, & rusli, 2007). the majority of land required for development is gained through the conversion of agricultural land. land that has been converted to non-agricultural uses tends to lose productivity, which negatively influences food security. numerous factors, including population density, land area, and accessibility, all contribute to reducing food security. food security is ultimately determined by the pattern of land conversion from agriculture to non-agricultural. land conversion from agriculture to non-agriculture is typically grouped in indonesia, as most land conversions from agriculture to non-agricultural are infectious or follow-up in nature. food security has a significant impact on the conversion of agricultural land to non-agricultural land, as illustrated by the following trend (irawan, 2005). land conversion from agriculture to non-agricultural on a random and regular basis tends to have a lower level of food security than those in groups. generally, as a result of development, available land in urban and rural areas is becoming increasingly scarce. this exacerbates urban and rural land problems, including an uncontrollable decline in food security and the emergence of conflicts of interest. the requirement for land for industry and numerous economic activities clashes with the increasing demand for dwellings, which results in a decline in food security (sari, nugroho, hendriawaty, & ginting, 2010). the rate of environmental development in karanganyar regency affects land use conversion, particularly agricultural land conversion to non-agricultural land. ritohardoyo (2009) asserts that the environment is identical to land. human activities are inextricably linked to land, both for agricultural agriculture and settlement and industrial. human actions to meet food demands are the primary factor, but land-use conversion constantly occurs on agrarian production land. the government's development plan is fundamentally an endeavor to manage natural resources and the environment thoughtfully and prudently, with the intention that no human action causes environmental damage. however, the conversion of agricultural land to other uses harms the environment, resulting in a decline in food security. natural resources, such as land and available water, can be leveraged to increase agricultural production, particularly rice, through expansion or intensification. karanganyar regency does not allow for agricultural growth by extensification, as the population is concentrated in a fairly small region (national land agency of the republic of indonesia, 2009). the most likely strategy for increasing agricultural production in karanganyar regency is intensification, which may be accomplished in several ways through careful land-use planning to maximize land productivity. because agricultural land ownership does not guarantee farmers can maintain their families, many farmers sell the property due to its high value. many farmers change careers due to the high value of their land; buyers frequently convert agricultural land to non-agricultural land. according to some perspectives, land-use conversion from agriculture to non-agriculture is a follow-up process, agbioforum, 23(2), 2021 | 145 rochmat martanto — land use conversion pattern and food security for sustainable food land direction in karanganyar regency … which means that if a location's land use is converted, it will be followed by several subsequent conversions. there is a positive relationship between land conversion from agricultural to non-agricultural land and land converted to agriculture. food security will deteriorate if agriculture is replaced by non-agriculture (astuti, 2011; irawan, 2005). one of indonesia's development challenges is the annual population increase, notably in karanganyar regency. these issues indirectly contribute to land conversion due to inhabitants' land needs. the population growth has led to a surge in housing and industrial development. simultaneous increase of housing and industry would erode food security when agricultural land is converted to non-agricultural land. the research area is the administrative area of karanganyar regency; geographically, karanganyar regency is located between 07000'28" to 07000'46" south latitude and 110000'40 to 110000'70" east longitude with the following limits. 1. sragen regency borders north. 2. it is bordered by boyolali regency, surakarta city, and sukoharjo regency in the east. 3. to the south, wonogiri regency borders it. 4. in the west it is bordered by east java province. the research area is the administrative work area of karanganyar regency, for more detail, the research area can be seen in figure 1. figure 1. karanganyar regency administration map according to the description above, the research objectives are as follows: (1) to analyze the pattern of agricultural land conversion to non-agriculture in karanganyar regency; and (2) to analyze the level of food security in karanganyar regency using the criteria of surplus food security, low food security, and minus food security, which is all taken into account in this study when determining land use direction in karanganyar regency. ii. research method karanganyar regency is the subject of the research. to identify the population and research sample, support from landsat satellite imagery is required, with a spatial resolution of 15 to 30 meters and accurate enough to map the earth's surface at a scale of 1: 25000 or less (jalzarika, 2008). between 2009 and 2019, all sub-districts in karanganyar regency witnessed the land-use conversion to non-agriculture. as a consideration of the research region, karanganyar regency has a relatively high rate of agricultural land conversion due to its proximity to metropolitan areas ( surakarta city). census sampling is used in this study, meaning the entire research population is taken/observed as the research sample. karanganyar regency's agricultural lands play a critical role in sustaining food productivity. additionally, agricultural land in karanganyar regency is complex regarding land physical qualities, socio-economic conditions, and society. this is assumed to be influenced by the shift of agricultural land to non-agricultural uses. the data analysis performed in this study is divided into two (two) categories based on the research objectives. 1. pattern of land conversion the pattern of agricultural land conversion in karanganyar regency is determined by calculating the distance between each location of land conversion using a land-use conversion map derived from landsat satellite imagery interpretation. then, using average nearest neighbor (ann) analysis, the data was evaluated. the term "land conversion" refers only to converting agricultural land to non-agricultural land. in this study, we employ closest neighbor analysis to assess whether the distribution pattern of land use conversion in karanganyar regency is clustered, random, agbioforum, 23(2), 2021 | 146 rochmat martanto — land use conversion pattern and food security for sustainable food land direction in karanganyar regency … or uniform, as indicated by the value of the average nearest neighbor (novio, mariya, & wijayanto, 2020). the outcome of this analysis provides an overview of the relationship between a land-use conversion pattern and the value of ann, which is calculated using the following formula: the average nearest neighbor (ann=z-score) ratio is given as : …………………………..………… (1) where do is the observed mean distance between each feature and nearest neighbor and de is the expected mean distance for the feature given a random pattern : in the previous equations, di equals the distance between feature i and its nearest feature, n corresponds to the total number of features and a the total study area. in conducting the nearest neighbor analysis, it is necessary to pay attention to the following essential steps: a. determine the boundaries of the area to be researched; b. changing the distribution pattern of the observed unit in the topographic map to a point distribution pattern; c. assign a serial number to each point to facilitate analysis; d. measure the shortest distance for the distance on a straight line between one point and another point which is its closest neighbor; e. according to novio et al. (2020), with arcgis software, the ann (z-score) is interpreted as in table 1 below. table 1. conversion distribution grouping no pattern z-score 1 clustered <-1.65 2 random -1.65≥ <1.65 3 uniform (dispersed) ≥165 f the distribution pattern of land use conversion is carried out using ann analysis with the working principle of grouping one cell with neighboring cell based on their similarity . 2. food security food security is calculated using data from karanganyar regency in figures for 2020, specifically the population of each subdistrict and the average paddy (rice) productivity per hectare per year, while agricultural land (paddy field) is obtained with the assistance of landsat satellite imagery to determine the use of agricultural land in 2019. the primary element affecting food security as a result of population consumption is the availability of land, population, and land productivity for lowland rice, as defined by martanto and handayani (2020): 𝑃 = land production in one year (kg/person/year) average consumption of rice per resident in one year (kg/person/year) or p= (l x pr x pl x r) 𝐾 …………………………………………(2) p = total population (people); l = land area (ha); pr = land productivity (kg/ha); pl = number of rice planting in a year; r = rice yield (in 1/100); k = average consumption of rice per person in a year (kg/person/year) the level of food security for each sub-district, namely surplus areas and minus areas, is calculated using formula (2), where minus areas are sub-districts that are not directed toward sustainable agricultural land but must also consider population density, and surplus areas are divided into two (two), namely high and low surplus, using the formula: i= tmax️-tmin k.………………………………..…….…………(3) i = class interval; tmax =maximum food security; tmin =minimum food security; k = number of classes = 2 (high and low) at the sub-district level in karanganyar regency, the pattern of land-use conversion and food security will subsequently be classified into three (three) areas (land), namely: 1) sustainable food agricultural land; 2) buffer land; and 3). convertible land. to obtain three (3) areas through the overlapping (overlay) of two (2) maps, namely the land use conversion pattern map and the food security level map with scoring technique (weighting), table 2 illustrates the overlap in scoring and data source in further detail. table 2. scoring and data sources no. variable calculation assumption grouping of research result (attribute) score data source 1 land use conversion pattern from the result of calculation with the help of landsat satellite imagery and arcgis software group 1 lansat satellite image overlay 2009 and 2019 random 5 uniform 9 2 food security level from the calculation according to formula (2) and the level of food security in formula (3) minus 1 landsat satellite image in 2019 and karanganyar regency in figure for 2020 low surplus 5 high surplus 9 note: scoring with ahp from saaty (1994) agbioforum, 23(2), 2021 | 147 rochmat martanto — land use conversion pattern and food security for sustainable food land direction in karanganyar regency … map of each variable can be made, namely 1) land use conversion pattern map and 2) food security level map and each sub-district will get a total score, then the total score is the basis for determining the direction of sustainable agricultural land use. direction for sustainable food land is determined based on the result of class interval calculation according to formula (3), in order to obtain a grouping of sustainable land use direction in karanganyar regency as shown in table 3. table 3. grouping of sustainable land use direction in karanganyar regency no. sustainable food land direction total score grouping 1 land for sustainable food security (must not be converted) ≥ (𝑡𝑚𝑖𝑛+2i) 2 buffer land (conditionally converted) ≥ (𝑡𝑚𝑖𝑛+ i)< (𝑡𝑚𝑖𝑛+2i) 3 land may be converted (land for regional development) < (𝑡𝑚𝑖𝑛+ i) the assumption built is that agricultural land that has a uniform conversion pattern and high surplus food security is an area or sub-district that is directed to sustainable food land so that agricultural land cannot be converted, while on the contrary on agricultural land that has a clustered conversion pattern and minus food security is an area or subdistrict whose agricultural land can be converted. meanwhile, some of them are buffer zones or areas/districts that may or may not be converted depending on regional need, so that policy maker play a very important role in determining whether or not the area is converted from agricultural land use to non-agricultural use. iii. research results and discussion the results and discussion of research in the administrative area of each sub-district in karanganyar regency are as follows. a. distribution pattern of land use conversion to obtain land use conversion data for each research unit, an overlay between the 2009 and 2019 land use maps was performed, and the overlapping difference between the 2009 and 2019 land use maps (from landsat satellite imagery) was visualized in the form of a map land use conversion 2010-2019 (for ten years) for each sub-district in karanganyar regency from agriculture to nonagriculture, as shown in figure 2. figure 2. map of land use conversion for 2009-2019 in karanganyar regency the pattern of land-use conversion can be determined using figure 2, namely by ann analysis. the outcome of the ann and the trend of land-use transformation from agricultural to non-agriculture in karanganyar regency using arcgis software are depicted in figure 3. agbioforum, 23(2), 2021 | 148 rochmat martanto — land use conversion pattern and food security for sustainable food land direction in karanganyar regency … figure 3. conversion pattern and ann for regency level in karanganyar regency from figure 3 it is known that the ann (z-score) of karanganyar regency = -2.553 and in table 1 it is located in line no. 1 which is <-165 and figure 3 is clustered so it can be said that the pattern of land use conversion in karanganyar regency is clustered pattern. a sub-district study is required to ascertain the direction of food security in karanganyar regency. karanganyar regency is divided into 17 sub-districts (figure 1); to ascertain the pattern of agricultural land use conversion and the z-score of agricultural land use conversion to nonagriculture at the sub-district level (figure 3), and as a result, the pattern of agricultural land use conversion and the z-score of agricultural land use conversion to nonagriculture from 2009 to 2019 at the sub-district level, as well as the weighting (score) as in formula table 4. conversion area and ann of land use at sub-district level 2009 and 2019 in karanganyar regency no. sub-district conversion area ann (z-score) ha/10 th % z-score pattern score (table 3) 1 gondangrejo 67.84 13.34 2,731 dispersed 9 2 kebakkramat 33.31 6.55 -1.093 random 5 3 kerjo 8.13 1.6 3.044 dispersed 9 4 jenawi 8.63 1.7 1,643 dispersed 9 5 jumantono 62.22 12.24 1,505 dispersed 9 6 mojogedang 20.23 3.98 -1,892 clustered 1 7 jaten 25.87 5.09 -2.507 clustered 1 8 colomadu 29.93 5.88 2,191 dispersed 9 9 jatiyoso 48.52 9.54 -1.156 random 5 10 jatipuro 42.14 8.29 2,197 dispersed 9 11 tasikmadu 22.17 4.36 4,231 dispersed 9 12 karanganyar 28.19 5.54 3,258 dispersed 9 13 ngargoyoso 14.27 2.81 1.116 dispersed 9 14 karangpandan 45.18 8.88 3,197 dispersed 9 15 matesih 19.29 3.79 2,930 dispersed 9 16 tawangmangu 1.01 0.2 -1,252 random 5 17 jumapolo 31.62 6.22 -1,710 clustered 1 amount 508.53 100 in table 4, it can be seen that land-use conversion at the karanganar regency level for 10 years, from 2010 to 2019 was 508.53 ha per year or 50.83 ha/year. in table 4 above, it can also be seen that there are land-use conversion patterns clustered in 3 sub-districts, random in 3 subdistricts and 11 dispersed, while the map of land use conversion pattern per sub-district in karanganyar regency can be seen in appendix 1. according to irawan (2005) the wariest of are the clustered patterns because land-use conversion tends to get bigger, while the safe for agbioforum, 23(2), 2021 | 149 rochmat martanto — land use conversion pattern and food security for sustainable food land direction in karanganyar regency … land use conversion is dispersed. to make a direction map for sustainable food land use in karanganyar regency in addition to the land use conversion pattern map, it is also necessary to calculate the "level of food security" for each sub-district to make a food security level map. b. food security level in determining food security per sub-district in the research area, data on the population in 2019 and the average productivity in 2010 (start of conversion) to 2019 are needed and this data is obtained from the bps for karang anyar regency, while the calculation uses formula (2) with the following condition: 1. population of karanganyar regency in 2019 (bps of karanganyar regency 2020)……………………... (p). 2. the average consumption of rice is 97.6 kg/capita/year (arifin, achsani, martianto, sari et al., 2018)..........(k). 3. yield of dry milled grain in indonesia: 64.02 % (bps indonesia, 2018)………………………………….. (r). 4. average productivity of paddy field in 2019 in karanganyar regency is 6000 kg/ha (bps karanganyar regency, 2020) …. (pr). 5. rice cropping pattern in karanganyar regency 2 x a year ……………………………………………… (pl). and after using formula (3) and table 3 the results are as in table 5. table 5. food security at the sub-district level in karanganyar regency no. sub-districts population year 2019 (soul) agriculture year 2019 consumption ability (soul) food security conversion pattern scores (table 4) total score land use direction remainder (soul) level score 1 2 3 4 5 6 7 8 9 10 11 1 jatipuro 29004 1424.42 112121 83117 sr 5 9 14 lb 2 jatiyoso 37089 1096.28 86292 49203 sr 5 5 10 bv 3 jumapolo 36351 2086.78 164257 127906 st 9 9 18 lb 4 jumantono 42939 2423.03 190724 147785 st 9 9 18 lb 5 matesih 40994 2576.88 202835 161841 st 9 9 18 lb 6 tawangmangu 45598 314.6 24763 -20835 minus 1 1 2 bk 7 ngargoyoso 33213 765.78 60277 27064 sr 5 1 6 bk 8 karangpandan 40409 278.49 21921 -18488 minus 1 9 10 bv 9 karanganyar 81629 1898.87 149466 67837 sr 5 5 10 bv 10 tasikmadu 61461 1764.93 138923 77462 sr 5 9 14 lb 11 jaten 85583 1189 93590 8007 sr 5 9 14 lb 12 colomadu 82199 626.94 49348 -32851 minus 1 9 10 bv 13 gondangrejo 81112 3569.12 280937 199825 st 9 9 18 lb 14 kebakkramat 64075 2265.32 178310 114235 st 9 9 18 lb 15 mojogedang 63217 2542.27 200110 136893 st 9 9 18 lb 16 kerjo 34963 1317.92 103737 68774 sr 5 5 10 bv 17 jenawi 26683 1397.27 109984 83301 sr 5 1 6 bk amount 886519 939795 sources: 1.bps, bantul district, 2019 2. satellite imagery landsat 2019 information: st : high surplus lv : buffer land sr : low surplus bk : land can be converted lb : land for sustainable food security c. land use direction a map of the pattern of food security levels can be created from table 5 (column 7) (appendix 2), showing that areas with minus food security levels are located in three subdistricts, areas with a low surplus (sr) are located in six sub-districts, and areas with high surplus (st) are located in eleven districts. it is projected that sub-districts with a big surplus will become a food barn (rice) for karanganyar regency. according to table 5, the population's ability to consume rice in all sub-districts was 939795 people in 2019, while the total population was 886519 people (table 5), implying that food security can be met in karanganyar regency by areas (sub-districts) with food surplus (rice) of (939795 people 886519 people) = 53276 people. subdistricts with clustered conversion patterns will become places prone to decreased food security; therefore, by overlaying the land use conversion pattern map and the food security level map, a land use direction map will be generated to support sustainable food security in karanganyar regency. after overlaying two (two) maps, namely 1) land use conversion pattern map (appendix 1) and 2) food security level map from table 5 (appendix 2), the land use direction map as illustrated in figure 4 will be created. agbioforum, 23(2), 2021 | 150 rochmat martanto — land use conversion pattern and food security for sustainable food land direction in karanganyar regency … figure 4. map of land use direction in karanganyar regency the land use direction map for each sub-district in karanganyar regency is depicted in figure 4 as follows: eight sub-districts of land dedicated to sustainable food security, three sub-districts of convertible land, and up to six sub-districts of buffer lands; these buffer regions are critical to the viability of sustainable food security programs. buffer land is a local government policy that provides a permit (policy) for the occurrence of land-use conversion, so the approach should be highly selective; for example, a conversion permit may be granted if the project is a national strategic project; however, a permit for the conversion of land use from agricultural to non-agricultural land is not granted. v. conclusion and suggestion a. conclusion 1. the land use conversion pattern in karanganyar regency is clustered at the sub-district level, with three clustered sub-districts, three random sub-districts, and eleven dispersed sub-districts, but the land-use conversion pattern at the regency level is distributed. 2. food security in karanganya regency is controlled by 11 sub-districts with a surplus of food, six sub-districts with a food deficit, and three sub-districts with a food shortage. the regency as a whole is a food barn region. 3. conversion of land use the pattern and level of food security at the sub-district level in karanganyar regency is one way to determine the direction of sustainable food land in the regency, with the following results: eight sub-districts of land for sustainable food security, three sub-districts of convertible land, and six sub-districts of buffer land. b. suggestions 1. because land-use conversion creates a conflict of interest between social interests and food needs, the direction of sustainable food land is expected to be applied in the karanganyar regency to preserve the region's status as a food barn. 2. strict regulations in the buffer zone (which may be converted conditionally) are required to ensure longterm food security in karanganyar regency. bibliography akhmaddhian, s., hartiwiningsih, & handayani, i. g. a. k. 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therefore, researchers must focus on this issue. consequently, the current study explores the effect of the mineral content of bamboo shell meat flour and bamboo shell calm flour on the health of living organisms in indonesia. the article also examines the moderating effect of the formation process on the relationship between the mineral content of bamboo shell meat flour, bamboo shell calm flour, and the health of living organisms in indonesia. using questionnaires, the researchers have collected primary data from selected respondents. the researchers have also utilized smart-pls to examine the relationship and test the study's hypotheses. the results revealed a beneficial relationship between the mineral content of bamboo shell meat flour and bamboo shell calm flour and the health of living organisms in indonesia. the results also suggested that the creation process moderates the relationship between the mineral content of bamboo shell meat flour, the mineral content of bamboo shell calm flour, and the health of living organisms in indonesia. this article aids policymakers in developing legislation concerning the proper use of the mineral in daily life and which wheat is healthier for living organisms. key words: mineral content in bamboo shell, meat flour, calm flour, the health of living being. 1. introduction bamboo shell (solen sp.) is one type of shellfish that has commercial value and is cultivated as a source of protein and minerals to suit the indonesian population's dietary requirements. bamboo shells inhabit intertidal zones on sandy and clay substrates impacted by tides and have tunnels in the substrate (trisyani, 2018; trisyani & yusan, 2020). in indonesia, bamboo shell are found in pamekasan, bangkalan, surabaya, cirebon and jambi under numerous regional names, namely knife shell, "lorjuk" and "sumbun" (liang et al., 2018; trisyani, 2018). a bamboo shell has a two-piece, fragile, elongated shell with an upright posterior side and a slightly downward-tilted anterior side. the shell's length ranges from 2.5 to 6.4 centimeters. solen sp. comprises 76.09 percent protein, 0.49 percent fat, 4.81 percent carbs, 9.49 percent water, and 3.99 percent ash. shell flour from solen sp. includes 2.92 percent protein, 0.31 percent fat, 1.17 percent carbohydrates, 0.57 percent water, and 95.04 percent ash (trisyani & anggorowati, 2020). a marine bivalve's composition offers a nutritional guarantee for millions of starving individuals (zhou et al., 2020). in addition to carbs, lipids, proteins, and vitamins, the body also needs minerals as a sort of nutrition (lee et al., 2019). minerals are essential in maintaining biological functioning at the cellular, tissue, organ, and overall body levels. minerals also function in several stages of metabolism, particularly as enzyme cofactors. mineral deficiency can lead to anemia, goiter, osteoporosis, and osteomalacia, among other health issues. additionally, mineral insufficiency impacts metabolism and tissue structure (ratna & trijoko, 2019). mineral requirements can be met by ingesting food from plants (vegetable minerals) and animals (animal minerals). macro minerals such as calcium and phosphorus act in the creation of bones and teeth, sodium functions in helping to maintain osmotic pressure and acid-base balance, and the existence of other macro minerals are essential to the body. microminerals like zinc play a crucial role in oxygen transfer to hemoglobin tissue and cellular oxidation pathways (xia et al., 2018). widespread usage of shell waste as a mineral source has occurred. the high calcium carbonate content of shellfish can be utilized in pharmaceutical formulations and construction; crassostrea madrasensis shell flour can be utilized efficiently in the pharmaceutical, fertilizer, lime, cement, and animal feed sectors. jia et al. (2019) use blood clam meal as a calcium source in catfish feed. moreover, premawansha, de souza et al. (2021) reported that chemical analysis of oyster shells revealed that the bioavailability of calcium from oyster shells is greater than calcium salts used in allopathic medicine and that the essential elements for health are calcium, magnesium, and sodium. calcium carbonate makes up the mollusk skeleton. a tiny fraction of the bivalve shell structure consists of phosphate. calcium carbonate makes up the majority of the bivalve shell. thirty-seven percent of the bivalve shell was composed of calcium. the shells of agbioforum, 24(1), 2022 | 96 trisyani. — the role of mineral content in bamboo shell meat (shell meal) and calm flour (meat meal) and formation process… bivalves have a higher calcium concentration than fish bone meal. numerous minerals are present in bamboo shell flour, including macro minerals such as calcium (ca), phosphorus (p), magnesium (mg), sodium (na), and potassium (k), and micro minerals such as zinc (zn), selenium (se), iron (fe), etc. as the mineral content has numerous benefits, such as food consumption and health protection, its primary application is in medicinal formulations and the pharmaceutical business. in the indonesian pharmaceutical industry, numerous experiments have been conducted to generate mineral contents from various types of shellfish, such as bamboo shells, which already possess the capacity for general minerals; this capacity of shellfish depends on the water, sandy, dusty, and clay substrates (karaulova, yakush, slutskaya, & shulgina, 2021). the pharmaceutical or medicinal sector uses bamboo shells typically harvested in pamekasan, bangkalan, surabaya, cirebon, jambi, etc., to create food items (trisyani & anggorowati, 2020) or mineral-containing medicines. first, the bamboo shell meat or bamboo shell clam is subjected to a specific mechanical or chemical process in which they are boiled, cooked, and treated with various chemicals or minerals, transforming into flour. second, this flour is modified and used to create a variety of food and pharmaceutical goods (duan et al., 2017). though the experiment of turning bamboo shell meat or bamboo shell clams into flour containing various minerals vital to life has already been conducted, it is currently being used to create mineral-based foods and medicines. still, many pharmaceutical companies are either unaware of the significance of bamboo shell meat flour or bamboo shell clam flour, their mineral-providing ability, and their effects on human health, or they are unable to benefit from it (lin, shi, mu, chen, & luo, 2018). and in indonesia, many individuals of all ages and different forms of life are afflicted with health conditions due to the minerals in their bodies. therefore, pharmaceutical industry experts must be adequately informed about the health benefits of bamboo shell meat and bamboo shell clam flour. in light of this necessity, the current study aims to achieve the following: • to investigate the impacts of the mineral content in bamboo clam meat flour on the health of living beings. • to investigate the impacts of the mineral content in bamboo shell clam flour on the health of living beings. • to investigate the moderating role of the formation process between mineral content in bamboo clam meat flour and the health of living beings. • to investigate the moderating role of the formation process between mineral content in bamboo shell clam flour and the health of living beings. although numerous research on the ash content analysis of food products and seafood have been undertaken, this work is an outlier and a significant contribution to the field. in the past, only the formation of bamboo shell flour and the mineral content analyses have typically been addressed. this study examines the relationship between bamboo shell flour and its mineral content and the health of living organisms. second, many prior studies focused primarily on bamboo shells' mineral makeup and health benefits. this study examines the impact of mineral content in bamboo shell meat flour and mineral content in bamboo shell clam flour on the health of different organisms, thus filling a gap in the existing literature. thirdly, the formation process as a moderator between the mineral content of bamboo shell meat flour and bamboo shell clam flour and the health of living organisms is also an essential contribution to the literature. the analysis of ash content is not novel in indonesia, but this is the first time that the effects of mineral content in bamboo shell meat flour and mineral content in bamboo shell clam flour on the health of living organisms have been studied in indonesia. the remainder of the paper consists of the following sections: the second section is a literature review about the effects of mineral content in bamboo shell meat flour and mineral content in bamboo shell clam flour on the health of living organisms. the third section outlines the data collecting and analysis methods used to determine the link between the components. the outcomes of the investigation are then supported by prior research. it concludes with study implications, limits, and study conclusions 2. literature review humans and other living beings, such as animals and birds, must be healthy because only healthy individuals can produce healthy human resources. only healthy animals and birds can give an economy raw materials, food, and services. therefore, the health of living things is essential to a nation's economic development and social welfare. in addition to nutrients such as carbohydrates, lipids, proteins, vitamins, etc., minerals such as calcium, magnesium, phosphorus, sodium, potassium, iron, zinc, selenium, etc., play an essential role in supporting human health. the minerals required by living organisms include macro minerals such as calcium, phosphorus, magnesium, sodium, and potassium, and micro minerals such as zinc, selenium, iron, etc. the raw bamboo shell contains nutrients and minerals, although in modest quantities (jingyuan et al., 2020). in contrast, the mineral content of bamboo shell meat flour and bamboo shell clam flour is significantly higher. whether consumed as food or administered as medicine, they preserve the health and function of living organisms. the amount of minerals in bamboo shell meat flour and bamboo shell clam flour is dependent on the method used to produce the flour from bamboo shell meat and bamboo clam. the number of minerals determines the health of users of these two varieties of flour made from any sort of bamboo shell. minerals in more significant quantities may benefit healthy organisms (fujita et al., 2019). this study agbioforum, 24(1), 2022 | 97 trisyani. — the role of mineral content in bamboo shell meat (shell meal) and calm flour (meat meal) and formation process… investigates the effects of mineral content in bamboo shell meat flour and mineral content in bamboo shell clam flour on the health of living organisms and the function of formation processes between these mineral contents and the health of living organisms. existing literature addresses the connection between the creation process, the mineral content of bamboo shell meat flour and bamboo shell clam flour, and the health of living organisms. various authors have offered divergent perspectives on the link between these perspectives. this article examines the relationship between the creation process, the mineral content of bamboo shell meat flour, bamboo shell clam flour, and the health of living organisms in light of previous writers' perspectives. in a scholarly article, de souza et al. (2021) discussed the features of the bamboo shell and the examination of ash content in bamboo shell meat and bamboo shell flour. in addition to other nutrients, bamboo shell meat contains trace amounts of minerals, according to the report. but the mineral content of bamboo shell meat flour is more significant. both the minerals required in large quantities by living organisms and the minerals required in lower amounts can be extracted in the desired quantities from bamboo shell meat flour. using products containing bamboo shell meat flour makes it possible to preserve the health of living organisms, and the mineral content of bamboo shell meat flour has a positive correlation with the health of living organisms. calcium, phosphorus, magnesium, sodium, and other minerals can be found in bamboo shell meat flour, according to db, hart, and nyeche (2017). these minerals sustain the body's health and function, including cell, tissue, and organ function, as well as the body's overall health. therefore, bamboo shell meat flour in the form of food or medicine contributes to maintaining a healthy body and mind. ilyas, zia, rehman, ilyas, and sultana (2021) investigate the mineral content of bamboo shell meat flour and its effect on the health of living organisms. this study demonstrates that bamboo shell meat flour is rich in calcium and phosphorus. calcium aids in the formation and repair of tissues, muscles, and other organs such as bones and teeth. however, calcium without phosphorus can damage the body and impair cognitive function. therefore, bamboo shell meat flour, rich in calcium and phosphorus, is healthier for living organisms. therefore, the following can be hypothesized: h1: mineral content in bamboo shell meat flour positively impacts the health of living beings. the research conducted by pleadin et al. (2019) explores the characteristics and mineral content of bamboo shell meat flour. the bamboo shell meat contains elements such as carbs, lipids, proteins, and vitamins that are also found in other foods, as well as trace amounts of minerals. however, bamboo shell clam flour includes considerable amounts of minerals such as calcium, potassium, phosphorus, salt, magnesium, iron, zinc, chromium, copper, fluoride, and selenium. these minerals from products containing bamboo shell clam flour assist consumers in overcoming health issues such as anemia, goiter, osteomalacia, and osteoporosis and preserve the health of living things. therefore, the mineral content of bamboo shell clam flour benefits the health of living organisms. kiin-kabari and obasi (2020) investigate the connection between the mineral content of bamboo shell meat flour and the health of living organisms. when bamboo shell clam flour undergoes a scientific process, it produces a significant amount of macro minerals such as calcium, magnesium, phosphorus, and sodium. these minerals are essential for maintaining body structures such as bone, cartilage, and exoskeleton and regulating blood circulation, cholesterol, and acid-base balance. therefore, the mineral content of bamboo shell clam flour contributes to maintaining bodily health. the essay by lawal-are, moruf, ojeah, taiwo, and aligbe (2021) discusses the ability of bamboo shell clam flour to generate nutrients and safeguard human health. according to this study, bamboo shell clams flour contains an acceptable salt level. proper sodium levels in the body maintain acid-base equilibrium, neuronal transmission, glucose absorption, muscular contraction, and membrane transfer of numerous nutrients. therefore, the mineral content of bamboo shell meat flour enhances and sustains the health of living organisms. similarly, araújo, lima, cardoso, and pasa (2020) work sheds light on the role of mineral content in bamboo shell clam flour in enhancing and preserving the health of living organisms. anemia, goiter, osteoporosis, and osteomalacia, as well as difficulties with metabolism and tissue structure, can develop from the mineral shortage in human and animal bodies. applying bamboo shell clam flour eliminates these issues and consequently preserves the health of living things. this indicates that the mineral content of bamboo shell clam flour contributes positively to the health of living organisms. based on the above discourse, we can formulate the following hypothesis: h2: mineral content in bamboo shell clam flour positively impacts the health of living beings. in an essay based on empirical research, azwar, chan, et al. (2022) investigate the mineral content of bamboo shell meat flour and their significance in supporting the health of living organisms and the formation process. the study suggests multiple formation techniques for obtaining bamboo shell meat flour to analyze mineral content and create powder containing these elements from shell meat. when an appropriate technique is done, the mineral content of bamboo shell meat flour increases because it prevents the loss of volatile minerals. minerals present in bamboo shell meat flour benefit living organisms' health. when an effective forming technique is applied, this procedure is hastened. therefore, the creation process establishes a connection between the mineral content of bamboo shell meat flour and the health of living organisms. the study by azwar, mahari, et al. (2022) hypothesizes that the ash content production process utilized to create flour from bamboo shell meat affects the agbioforum, 24(1), 2022 | 98 trisyani. — the role of mineral content in bamboo shell meat (shell meal) and calm flour (meat meal) and formation process… body's creation of essential minerals. the bamboo shell meat flour is better for living things if the right degree of temperature and drying time are applied to the meat after boiling. therefore, the creation process is essential for enhancing the contribution of bamboo shell meat flour to the health of living things. hence. h3: the formation process is an appropriate moderator between mineral content in bamboo shell meat flour and the health of living beings. abd-el-aziz (2021) explore the relationship between the production process, the mineral content of bamboo shell clam flour, and the health of living organisms through an experiment. scientists can produce nutrient flour without losing volatile minerals if they use bamboo shell clam to supply minerals for humans and an effective formation procedure for bamboo shell clam flour. as a result, bamboo shell clam flour is rich in nutrients and can assist users in reaching better health. therefore, selecting an efficient production method for bamboo shell clam flour boosts the flour's mineral content, enhancing its contribution to the health of living organisms. abd-elaziz (2021) focused on the relationship between the creation process, the mineral content of bamboo shell clam flour, and the health of living organisms. the study demonstrates that ash content analysis techniques, such as dry ashing, wet ashing, and low-temperature plasma dry ashing influence mineral content in bamboo shell clam flour based on the selection of an appropriate procedure for the production of flour from bamboo shell clams. implementing an appropriate and proven formation procedure produces both macro and micro minerals in bamboo shell clam flour, allowing those who consume foods containing this flour to maintain their health more effectively. based on previous literary arguments, it can be stated: h4: the formation process is an appropriate moderator between mineral content in bamboo shell clam flour and the health of living beings. 3. research methods the study examines the influence of mineral content in bamboo shell meat flour and mineral content in bamboo shell calm flour on the health of living organisms, as well as the moderating effect of the formation process on the relationship between mineral content in bamboo shell meat flour, mineral content in bamboo shell calm flour, and health of living organisms in indonesia. using questionnaires, the researchers have collected primary data from selected respondents. the questionnaires for the survey were derived from previously available materials. mustafa, naeem, masood, and farooq (2016) retrieved six items from the mineral content scale of bamboo shell meat flour. in addition, bamboo shells calm flour's mineral content on a six-item scale derived by (kadirvel et al., 2018). in addition, the formation procedure includes a fiveitem scale derived from the work of monnet, laleg, michon, and micard (2019). the health of living things is measured by a four-item scale derived from (lee et al., 2019) research. in addition, the researchers have chosen pharmaceutical company analysts whose task is to assess the mineral composition of the product and employ these minerals to improve the health of living organisms. the pharmaceutical businesses have informed the researchers that approximately 1520 analysts work for the selected companies. according to morgan's sample size calculation criterion, the study's sample size is 307. thus, the researchers sent out approximately 530 surveys, but only 295 were returned a few days later. the response rate for these surveys is roughly 55.66 percent. in addition, the researchers employed smart-pls to verify the link and validate the study's assumptions. it is an efficient statistical technique that works well with large and small data sets and yields the best results when used in complex frameworks (ringle, da silva, & bido, 2015). in addition, the study incorporated two predictors: mineral content in bamboo shell meat flour (mcbsmf) and mineral content in bamboo shell calm flour (mcbscf). in addition, the research employed one moderator variable, such as the formation process (fp), and one dependent variable, such as the health of living organisms (hlb). these factors are presented in figure 1 as the study's framework. figure 1: theoretical framework mineral content in bamboo shell meat flour health of living being mineral content in bamboo shell clam flour formation process agbioforum, 24(1), 2022 | 99 trisyani. — the role of mineral content in bamboo shell meat (shell meal) and calm flour (meat meal) and formation process… 4. research findings this study's mineral composition included both macro and micro minerals. this study identified calcium (ca), phosphorus (p), sodium (na), potassium (k), and magnesium (mg) as the macro mineral groupings (mg). microminerals include zinc (zn), selenium (se), and iron (fe). table 1 displays the average mineral content of meat meal and bamboo mussel shells from kwanyar bangkalan's coastal waters. table 1: mineral content of meat flour and bamboo shell flour (solen sp.) description: the average value of 3 repetitions the study results demonstrate the content validity of utilizing factor loadings, and the value threshold for factor loadings is more significant than 0.50. results revealed that values are more than 0.50, indicating content validity. in addition, the study results demonstrate convergent validity using average variance extracted (ave), whose values must exceed 0.50 to meet the criteria. the results demonstrated that the values are more significant than 0.50 and supported the validity of convergent validity. in addition, the study results demonstrate the examination of reliability using alpha and composite reliability (cr), with the threshold for both criteria being more significant than 0.70. the findings revealed that the values are more significant than 0.70, indicating reliability. table 2 displays the results mentioned above. table 2: convergent validity constructs items loadings alpha cr ave formation process fp1 0.863 0.916 0.937 0.749 fp2 0.852 fp3 0.841 fp4 0.890 fp5 0.879 health of living being hlb1 0.636 0.843 0.897 0.689 hlb2 0.884 hlb3 0.896 hlb4 0.876 mineral content in bamboo shell clam flour mcbscf1 0.952 0.959 0.968 0.834 mcbscf2 0.831 mcbscf3 0.950 mcbscf4 0.953 mcbscf5 0.830 mcbscf6 0.953 mcbsmf1 0.944 0.971 0.977 0.875 mineral content in bamboo shell meat flour mcbsmf2 0.951 mcbsmf3 0.933 mcbsmf4 0.900 mcbsmf5 0.952 mcbsmf6 0.932 in addition, the study results include an analysis of discriminant validity using the fornell larcker criterion, which requires the first value in the column to be greater than the other values in the column. the results demonstrated that the first number in the column is more significant than the other values, indicating discriminant validity. table 3 displays the results mentioned above. table 3: fornell larcker fp hlb mcbscf mcbsmf fp 0.865 hlb 0.367 0.830 mcbscf 0.402 0.435 0.913 mcbsmf 0.414 0.385 0.500 0.936 in addition, the study results demonstrate the investigation of discriminant validity using cross-loadings, with the crossno mineral meat flour bamboo shells shell flour bamboo shells macro mineral 1 calcium (ca) mg /100 g 521.41 ± 26.23 52035.16 ± 989.87 2 magnesium (mg) mg /100 g 90.55 ± 2.68 20.29 ± 0.90 3 phosphor (p) mg / kg 5074.30 ± 191.97 251.32 ± 8.15 4 natrium (na) mg / 100 g 157.25 ± 191.97 351.28 ± 14.35 5 kalium (k) mg / 100 g 125.66 ± 3.26 21.37 ± 1.07 micro mineral 1 iron mg / 100 g 48.11 ± 1.95 4.44 ± 0.09 2 zinc mg / 100 g 7.20 ± 0.27 0.19 ± 0.03 3 selenium mcg / 100 g 27.45 ± 3.49 42.42 ± 8.209 agbioforum, 24(1), 2022 | 100 trisyani. — the role of mineral content in bamboo shell meat (shell meal) and calm flour (meat meal) and formation process… loadings criteria requiring that the values that exposed the nexus with the variable itself be more significant than those that disclosed the nexus with other variables. the results demonstrated that the usual requirements are met and demonstrated discriminant validity. table 4 displays the results mentioned above. table 4: cross-loadings fp hlb mcbscf mcbsmf fp1 0.863 0.298 0.343 0.338 fp2 0.852 0.312 0.306 0.333 fp3 0.841 0.276 0.355 0.370 fp4 0.890 0.325 0.361 0.368 fp5 0.879 0.365 0.373 0.382 hlb1 0.243 0.636 0.245 0.336 hlb2 0.305 0.884 0.398 0.310 hlb3 0.346 0.896 0.404 0.332 hlb4 0.316 0.876 0.378 0.308 mcbscf1 0.347 0.390 0.952 0.461 mcbscf2 0.398 0.414 0.831 0.440 mcbscf3 0.347 0.399 0.950 0.466 mcbscf4 0.353 0.382 0.953 0.464 mcbscf5 0.400 0.406 0.830 0.441 mcbscf6 0.349 0.383 0.953 0.460 mcbsmf1 0.392 0.344 0.465 0.944 mcbsmf2 0.385 0.349 0.474 0.951 mcbsmf3 0.373 0.378 0.471 0.933 mcbsmf4 0.421 0.358 0.458 0.900 mcbsmf5 0.382 0.348 0.469 0.952 mcbsmf6 0.373 0.377 0.468 0.932 moreover, the study results also examine discriminant validity using the heterotrait monotrait (htmt) ratio. the threshold for the htmt ratio criteria is that the values should be lower than 0.90. the results exposed that the values are lower than 0.90 and indicated valid discriminant validity. table 5 shows all the outcomes mentioned above table 5: heterotrait monotrait ratio fp hlb mcbscf mcbsmf fp hlb 0.414 mcbscf 0.427 0.479 mcbsmf 0.439 0.431 0.517 figure 2: measurement model assessment the results revealed that the mineral content of bamboo shell meat flour and bamboo shell calm flour had a good agbioforum, 24(1), 2022 | 101 trisyani. — the role of mineral content in bamboo shell meat (shell meal) and calm flour (meat meal) and formation process… correlation with the health of living organisms in indonesia and support hypotheses h1 and h2. the results also demonstrated that a one percent difference in the mineral content of bamboo shell meat flour results in a 0.182% reduction in the health of living organisms. in addition, the results demonstrated that a one percent increase in the mineral content of bamboo shell flour increases the health of living organisms by 0.290 percent, and vice versa. in addition, the results indicated that the creation process significantly moderates the relationship between the mineral content of bamboo shell meat flour, the mineral content of bamboo shell calm flour, and the health of living organisms in indonesia, as well as accept h3 and h4. table 6 displays the relationships mentioned above. table 6: a path analysis relationships beta sd. t statistics p values ll. ul. fp -> hlb 0.237 0.062 3.801 0.000 0.124 0.334 mcbscf -> hlb 0.290 0.066 4.415 0.000 0.175 0.375 mcbscf*fp -> hlb 0.098 0.059 1.662 0.049 0.019 0.196 mcbsmf -> hlb 0.182 0.074 2.454 0.008 0.057 0.324 mcbsmf*fp -> hlb 0.138 0.056 2.452 0.008 0.027 0.215 figure 3: structural model assessment figure 4: moderation analysis agbioforum, 24(1), 2022 | 102 trisyani. — the role of mineral content in bamboo shell meat (shell meal) and calm flour (meat meal) and formation process… 5. discussions the results demonstrated that the mineral content of bamboo shell meat flour benefits the health of living organisms. these findings are also corroborated by (lawal-are, moruf, ogunbambo, & abimbola, 2022). they investigate the mineral content of bamboo shell meat flour and its effect on consumers' health of any food or medicine containing it. minerals such as calcium, magnesium, phosphorus, sodium, potassium, iron, zinc, selenium, etc., which are helpful to live organisms in varying quantities, are required by the bodies of all living organisms. the bamboo shell meat flour contains all of these minerals and promotes life's health. living organisms can function more effectively by consuming these minerals in proper amounts. according to jami, kenari, paknejad, and mohseni (2019), bamboo shell meat flour contain various minerals, including calcium, phosphorus, magnesium, sodium, etc. these minerals sustain the health of the body and its functions, including the functions of cells, tissues, organs, and the body as a whole. therefore, using bamboo shell meat flour in the form of food or medication assists living creatures in maintaining a healthy body and mind. these findings are also consistent with berik, çankırılıgil, and gül (2017). they note that bamboo shell meat flour enables living organisms to contain minerals in adequate quantities and nutrients from essential general foods. this preserves the internal and external health of the body. the results demonstrated that the mineral content of bamboo shell clam flour is beneficial to the health of living organisms. these results are also supported by yek et al. (2022). they demonstrate that although bamboo shell clam is typically discarded as waste from bamboo shellfish, after being processed into flour, it is exceptionally beneficial to the health of living organisms due to its high mineral content, which includes calcium, magnesium, phosphorus, sodium, potassium, iron, zinc, and selenium, among others. these results are consistent with woods, goosen, hoffman, and pieterse (2020) findings, which shed light on the significance of bamboo shell clam flour's mineral content in promoting and preserving living organism health. according to this study, bamboo shell clam flour contains large calcium. calcium is essential for the development of teeth and bones, as well as the maintenance of various tissues, mussels, and other organs. therefore, the mineral content of bamboo shells promotes the health of living organisms, particularly during growth and pregnancy. under the findings of islam, mondal, bhowmik, islam, and begum (2017), bamboo shell clam flour, after undergoing a specific scientific process, develops a significant amount of macro minerals, such as calcium, magnesium, phosphorus, and sodium, which play a vital role in the maintenance of body structures such as bone, cartilage, and exoskeleton, as well as the control of blood circulation, cholesterol, and acid-base balance. therefore, the mineral content of bamboo shell clam flour promotes and preserves health. the results indicated that the production process moderates the relationship between the mineral content of bamboo shell meat flour and the health of living organisms. woods et al. (2020) studied the development of bamboo shell meat flour for ash content generation, the mineral content created in bamboo shell meat flour, and its impact on the health of living organisms. this study suggests that adopting one of the three most prevalent ash content techniques, either dry ashing, wet ashing, or lowtemperature plasma dry ashing, influences the mineral content of bamboo shell meat flour. if an appropriate formation method is done, bamboo shell meat flour will include a greater quantity of macro and micro minerals. the users of edible products using this flour will experience more health benefits and preserve their health. these results are also consistent with chen et al. (2019). they note that the procedure used to create flour from bamboo shell meat for ash content influences the flour's ability to deliver essential minerals for a healthy body. suppose those producing bamboo shell meat flour select the optimal temperature and dry the meat after boiling. in that case, the mineral content loss is minimized, and the resulting product is healthier for living things. therefore, the formation process plays an appropriate role in boosting the health benefits of bamboo shell meat flour. the results suggested that the production process moderates the relationship between the mineral content of bamboo shell clam flour and the health of living organisms. these findings are supported by lilly, immaculate, and jamila (2017), which indicates that the study implies that when biologists use bamboo shell clam as a source of minerals for humans and adopt an effective formation process for bamboo shell clam flour, they can successfully produce nutrient flour without the loss of volatile minerals. in this way, bamboo shell clam flour is rich in minerals and can better assist consumers in achieving good health. therefore, the selection of an efficient forming technique for bamboo shell clam flour increases its mineral content, thereby enhancing its contribution to the health of living organisms. these findings are also consistent with abd-el-aziz, elsesy, and hashem (2022) analysis of how bamboo shell clam flour's creation process influences its consumers' health. the study demonstrates that in the presence of an efficient creation process, the role of bamboo shell clam flour's mineral content in boosting the health of living organisms improves. 6. implications the consequences of this work are both theoretical and empirical. this study has significant theoretical value since it provides numerous advances to the body of knowledge. the study focuses on the role of bamboo shell flour in maintaining the health of living organisms. the study investigates the role of mineral content in bamboo shell meat flour and bamboo shell clam flour in promoting and maintaining health in living organisms. before this, numerous studies merely examined the mineral content of agbioforum, 24(1), 2022 | 103 trisyani. — the role of mineral content in bamboo shell meat (shell meal) and calm flour (meat meal) and formation process… bamboo shells and their effects on the health of living organisms. individual analyses of the effects of mineral content in bamboo shell meat flour and mineral content in bamboo shell clam flour on the health of living organisms are performed in this study. the utilization of the formation process as a moderator between the mineral content of bamboo shell meat flour and bamboo shell clam flour and the health of living organisms is also a significant contribution to the body of knowledge. this study illustrates how bamboo shells can improve the health of living creatures, making it of considerable importance in countries such as indonesia, which have abundant sources of bamboo shells or other types of shellfish. this article aids policymakers in developing legislation concerning the proper use of the mineral in daily life and which wheat is healthier for living organisms. the study serves as a guide for professional medical analysts, government officials, and private citizens. it instructs experienced analysts in the medical sector on how to formulate bamboo shell meat flour and bamboo shell clam flour such that the flour contains both macro and micro minerals, enhancing the health benefits of bamboo shell meat flour and bamboo shell clam flour. it is suggested that the government should pay attention to the growth of bamboo shells and the production of bamboo shell meat flour and bamboo shell clam flour to boost the economy and the health of the country's inhabitants. it further clarifies that people should seek out appetizing products made with bamboo shell flour for improved health. 7. conclusions the study aimed to investigate the effects of the mineral content of bamboo shell meat flour and bamboo shell clam flour on the health of living organisms. it was also intended to investigate the relationship between the mineral content of bamboo shell meat flour and the mineral content of bamboo shell clam flour, as well as their roles in enhancing the health of living organisms. the quantitative research approach was utilized, and data on the effects of mineral content in bamboo shell meat flour and mineral content in bamboo shell clam flour on the health of living organisms was gathered using questionnaires disseminated to the medical sector of indonesia. the results indicated that the mineral content of bamboo shell meat flour and bamboo shell clam flour had sound effects on the health of living organisms. the results suggested that if bamboo shell meat flour includes a high concentration of various minerals, it can be used to alleviate a variety of health problems and improve health. the results indicated that if bamboo shell clam flour has significant amounts of minerals such as calcium, magnesium, phosphorus, sodium, etc., the users of products containing this flour can maintain their health. the study reveals that when an effective forming technique is used to turn bamboo shell meat and bamboo shell clam into flour, the resulting bamboo shell meat flour and bamboo shell clam flour are rich in minerals and can therefore contribute more to the health of living organisms. 8. limitations despite its numerous limitations, the current work has theoretical and empirical implications. this study explores the effect of the mineral content of bamboo shell beef flour and bamboo shell clam flour on the health of living organisms. the mineral content of bamboo shell flour is not the only factor that might affect the health of living things. therefore, future authors must concentrate on additional aspects that affect the health of living things. only a moderator of the formation 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(2020). effects of dietary leucine levels on intestinal antioxidant status and immune response for juvenile golden pompano (trachinotus ovatus) involved in nrf2 and nf-κb signaling pathway. fish & shellfish immunology, 107, 336345. doi:https://doi.org/10.1016/j.fsi.2020.10.012 consumer demand and prospects for commercialization of nutritionally enhanced gm bananas in uganda enoch kikulwe bioversity international marsy asindu makerere university biofortified banana (musa spp.) is being promoted by the biotechnology industry to reduce vitamin a deficiency and enhance the nutrition status of vulnerable populations in banana growing regions of the world. pending its commercialization in some developing countries, there is a need to quantify demand and gauge the existing market demand for biofortified banana. applying a contingent valuation method (cvm), we surveyed 233 ugandan bananaconsuming households, of which 32%, 45%, and 17.5% in the three regions surveyed (central, western, and eastern regions, respectively) were willing to pay ugx 6,000 ($1.70 us) more per 22-kilogram bunch of biofortified bananas than for the equivalent weight in non-biofortified green cooking bananas. our study calculates an annual potential demand for biofortified bananas of 2.6 million metric tons, with an estimated market value of ugx 2,542 billion ($673.5 million us), suggesting that, pending commercialization, there is already a huge market for biofortified bananas in uganda. key words: biofortified banana, vad, willingness to pay, contingent valuation, uganda. suggested citation: kikulwe, e., & asindu, m. (2020). consumer demand and prospects for commercialization of nutritionally enhanced gm bananas in uganda. agbioforum, pre-production publication, 1-12. available on the world wide web: http://www.agbioforum.org.   agbioforum, 23(2): 92-101. ©2021 agbioforum agriculture technology adoption in malaysia: the extension service's role, rural financing, and the lender's institutional context sobhia saifan al-ahliyya amman university, hourani center for applied scientific research email: s.saifan@ammanu.edu.jo rida shibli al-ahliyya amman university, hourani center for applied scientific research email: r.shibli@ammanu.edu.jo junainah abd hamid management and science university email: junainah@msu.edu.my https://orcid.org/0000-0003-3078-6123 i.a ariffin management and science university email: indang@msu.edu.my https://orcid.org/0000-0002-1376-7126 jacquline tham management and science university email: jacquline@msu.edu.my https://orcid.org/0000-0003-0966-2425 there has been an increase on the incorporation of technology in the agricultural industry. the present research addresses the effect of the extension services, institutional lender context and rural financing in malaysia and the degree to which these practices influence the agricultural technological adoption within the country. the country has been promoting microfinance institutions and education in agriculture to support the agricultural development as major revenue is driven from the industry. thus, the present study was developed to study the relationship between the extension services, institutional lender context and rural financing and agricultural technological adoption in malaysia. the present study used the novel approach of the ardl to study the long run and short run relationships between the extension services, institutional lender context and rural financing and agricultural technological adoption of malaysia. the data for the last 3 decades was used to study the variation and association between the research variables. the ardl bounds test informed of significant cointegration among the research variables. the estimation indicated that there are direct associations between the extension services, institutional lender context and rural financing and ata both in the long and short run. the extension services, institutional lender context and rural financing in malaysia represent significant affluence over the dependency for the adoption for technological advancements in the agricultural industry. this study presents a new vision for malaysia to develop its agricultural and economic policies. keywords: extension services, institutional lender context and rural financing, agricultural technology adoption, farming households. 1. introduction to help the farmers in agriculture, they must be provided with some incentives and funds to enhance productivity with effective processes. increased rural credits provided to farmers would have a productive impact on their agriculture practices. various competitive industries have also been working in providing incentives to farmers so that they can work for such organizations and supply them with efficient crops that are rich in nutrients and grown with new techniques to grab the attention of consumers as well as increase the business profitability by signing contracts with professional farmers. agricultural technology adoption has increased in the recent decade in malaysia as crop quality is the main product of agriculture to increase the business processes and the economic stability of farmers (verma & sinha, 2018). in the context of malaysia, it has been reported that various institutions have been lending loans to the farmers to enhance the production of crops with effective practices that have been guided to the farmers through agriculture extension services. in addition, many insurance organizations have been helping the poor farmers that need to acquire some financial resources to increase their income by enhancing new techniques in agriculture. in such a way, the farmers can be helped to increase the productivity of crops as new technology equipment are quite expensive to afford for poor farmers (utami, indrianto, & pratama, 2019). the financial support provided to farmers as per agriculture credit, or rural financing can be done through various means. in some ways, the farmers can get loans from banks and insurance organizations to increase the quality of fields and crop yields. in other ways, the farmers can contact the government agencies to lend them some amount for upgrading their agriculture business and enhance the living standards. the farmers can also attain the funds in the form of a mortgage. this method has also been proved effective in malaysia's rural regions that farmers have the assistance by keeping something worthy under mortgage regulations. the study is based on utilization of new techniques in agriculture department of malaysia and increasing the need of agriculture extension services as well as providing rural financing to farmers for better crop productivity. the problem statement in the current study is to enlighten the aspects and influence of rural financing on the agriculture department and providing incentives to farmers so that they can earn better and improve their farm level income. in various developed and developing countries the need of rural financing is increasing and farmers are now aware of new policies that have been added in the agriculture sector to enhance the farming career with extensive services. the current research fulfils the concerns of adopting agriculture practices with advanced technology tools and equipment that would be beneficent for development of crops yields. rural financing as a supportive initiative of agricultural needs is required to be promoted in malaysia for providing farmers with financial support to increase their mailto:s.saifan@ammanu.edu.jo mailto:r.shibli@ammanu.edu.jo mailto:junainah@msu.edu.my https://orcid.org/0000-0003-3078-6123 mailto:indang@msu.edu.my https://orcid.org/0000-0002-1376-7126 mailto:jacquline@msu.edu.my https://orcid.org/0000-0003-0966-2425 agbioforum, 23(2), 2021 | 93 saifan, shibli, hamid, ariffin and tham. — agriculture technology adoption in malaysia: the extension service's role, rural financing… lifestyle standards. the different aspects of extension services are illuminated in the following research to solve the issues of institutional context and providing financial aid to farmers with extension services to adapt new techniques introduced in agriculture for increasing profitability. in previous studies the significant need for rural financing was not known and the farmers were not provided with adequate incentives specifically in rural areas to enhance their crop productivity and to promote the institutional context of lenders. such financing policies were considered useless for upgradation of farming practices as farmers at rural areas were not aware of financial support from government to enhance the agriculture productivity. the current study fulfils such gaps and highlights various rural credit institutions in malaysia that have been working to support the farmers in their agriculture progress. such institutions and organizations have provided millions of financial support to farmers and increased their market share to 16.1% to 18%. the current study promotes the need to provide the farmers with loans and rural financing to upgrade their career opportunities in the agriculture sector of malaysia (ujang & noor, 2020). in accordance to above information provided in background of study the specific objectives can be formulated. it is obvious that new technology utilized in farming practices will increase the soil fertility and make a rapid evolution in the agriculture perspectives with efficient rewards to farmers. specific objectives for the study are initiated below: • to explore new techniques in order to generate agricultural productivity. • to study different aspects of rural financing and to promote legal perspectives of lending financial support to farmers. • to study the new skills and farming behaviors in rural areas and establish awareness for new technology adoption in farmers. in the agriculture extension services provided to farmers in malaysia, a lot of awareness is required to be provided for enhancing innovative measures. the scope of study is vast as it is based on using different equipment to enrich the crops with more fertile soil and usage of compost in a considerable quantity so that the crops are produced rich in nutrients. the farmers can also be provided with harvesting equipment to learn new techniques for using such favourable tools in agriculture. in addition, various irrigation techniques are also guided to farmers to minimize water wastage and use required quantity of fertilizers to cultivate the land (jin, seong, & khin, 2019). the current study has immense significance because it is going to provide ample data regarding financing resources for rural farers specifically and providing incentives in order to help them in adopting new techniques according to the needs of modern era. it is seen in various studies that a lot of insurance companies have been emerging to provide incentives to framers to make their crop productivity better. the current study has the importance to illuminate the need of agriculture extension services for farmers so that they can work for upgrading their agriculture practices with innovative measures. the use of new technology tools will support farmers to enhance farming techniques (lakhan, channa, magsi, koondher et al., 2020). the current study structure is ordered as initial introduction then literature review is discussed in accordance with past studies for the selected topic. the third chapter defines methodology for the research being conducted followed by results and findings gathered from methodology. the last part is based on discussion and conclusion that explain the topic further. 2. literature review 2.1. agricultural technology adoption” and the “theory of planned behavior” the studies conducted in the field of agriculture especially related to the adoption of technology as well as its diffusion showed that the farmers are in control of making agbioforum, 23(2), 2021 | 94 saifan, shibli, hamid, ariffin and tham. — agriculture technology adoption in malaysia: the extension service's role, rural financing… decisions regarding the implementation or use of such technology. many agricultural sectors of different countries around the globe practice this theory. however, it was initially practiced in the us and less involvement of the government was observed in the decision-making processes of the farmers. later on as the increased use of pesticides and fertilizers caused an alarming condition, the us government took control of the agricultural field (adnan, nordin, bahruddin, & tareq, 2019). thus, different standards of technology were maintained for better outcomes. for this purpose, the behavior of both adopters as well non-adopters is observed by different scholars. even the “theory of reasoned action” is also controlled by the “theory of planned behavior”. however, along with the behavior of the individuals, the financial resources are also considered to have an important impact on the action of the individuals (beaman, benyishay, magruder, & mobarak, 2021). however, different external as well as internal factors are found to have an impact on the action of the individuals. the impact of “financial variables” is considered to be very essential for this purpose. thus, the “theory of planned behavior” is found to have a substantial impact on the decision making processes of the farmers thus encouraging them or demotivating them to adopt the newly available technologies for improving their incomes (jayashankar, nilakanta, johnston, gill et al., 2018). different extension services also play an important role in molding the behavioral attitude of the farmers (especially from the rural areas of the developing countries) towards the technology adoption. whereas, the lender is also found to play an important role as the financial variables are directly linked to it. this helps in encouraging the farmers to opt for more technologies in order to earn more profit (ugochukwu & phillips, 2018). this is an essential practice especially in the agricultural sectors of the developing countries leading to more positive outcomes in the form of great profit as well as credibility. many different new technologies are being introduced in the agricultural sectors these days. this has encouraged the farmers to adopt them more efficiently and the extension services play a huge part in this context which encourages the farmers to go for better net profit revenue (zhang, sun, ma, & valentinov, 2020). 2.2. agricultural extension service and agricultural technology adoption many research studies have played an important role in determining the impact of agricultural extension services on adoption of technology by the farmers. according to danso-abbeam, ehiakpor, and aidoo (2018), the programs are introduced by the public sectors for different extension services. this helped in promoting the use of technologies by the farmers. it has been observed that the farmers who have extension services, are more likely to adopt the technology (he, kim, & zhang, 2020). different others studies have also shown that the farmers who adopt more of the technologies, gain more profitability in terms of crop productivity and utilization of natural resources (pan, smith, & sulaiman, 2018). many policies as well as educational programs are also introduced by the governments to promote the agricultural extension services which ultimately leads to better agricultural technology adoption by the farmers. it has been observed by different projects, that the well-educated farmers were more likely to adopt the technologies which lead to better production of the crops whereas, the non-educated farmers followed the old school methods and were not able to obtain the required outcomes as required (takahashi, muraoka, & otsuka, 2020). this showed the significance of the agricultural extension services for the adoption of agricultural technology by the farmers especially of the rural areas in the developing countries. with the passing time, many new technologies have emerged also in the field of agriculture. these technologies have helped in providing a helping hand for the farmers to obtain their desired goals in a time limited frame. many governments of different countries have also introduced different extension services for increasing the adoption of the farmers towards the agricultural technology (verma & sinha, 2018). this is the most effective method used by the farmers in order to obtain better crop production. new technologies acceptance has become more common with the implementation of extension services. according to norton and alwang (2020), the use of chemical fertilizers was not common in ghana. however, the implementation of extension services in the agricultural sectors of ghana promoted their interests towards new innovations for improving the crop productivity and the use of fertilizers gradually increased for effective outcomes. this helped the agriculture sectors to boom thus promoting the sustainable development. however, the sustainable performance in such areas in also considered to be effective for this purpose. thus, such explanation leads to the formulation of following hypothesis: h1: agricultural extension services has a significant impact on the agricultural technology adoption. 2.3. rural financing and agricultural technology adoption different countries around the globe are more concerned about their agricultural sectors due to the increased awareness of the sustainable development. this has also encouraged the baking systems of such countries especially the developing countries to promote agricultural credit for the agricultural sectors in order to increase the crop productivity ultimately leading towards the security of the food. this also helps the rural farmers to maintain a better household by financing it properly after the gain through the agricultural production (yajid m.s.a., 2020). according to albar and hoque (2019), the credit given to the agricultural sectors in africa, helped in improving their production by adopting new technologies. the female workers in the field were more likely to adopt these technologies. this not only proved to be effective for increasing the crop production but it also helped in improving the household of such farmers. this is considered to be very useful by many other scholars such as (gebregziabher, 2019) and (mariyono, 2019). agbioforum, 23(2), 2021 | 95 saifan, shibli, hamid, ariffin and tham. — agriculture technology adoption in malaysia: the extension service's role, rural financing… however, the education was also found to play an important role in this regard. even though the credit has been given to the agricultural sectors especially in the rural areas. but if the farmers are not capable enough to utilize this credit properly, they might not be able to earn the desired incomes (zheng, wang, & wachenheim, 2019). education along with different training programs also help in improving the technical efficiency of the farmers that help them to adopt the new technologies more efficiently. this not only increases the total output of the put efforts but it also help in providing awareness to the farmers for better acceptability (mutyasira, hoag, & pendell, 2018). according to ejemeyovwi and osabuohien (2020), the acceptability of the new technologies is very important for the farmers and the rural financing by the governments also support the adoption of agricultural technology by these farmers. this encourages them to take risk as they are provided with the needed support and this could help in increasing the economic growth above an expected range that could be beneficial for both the rural farmers as well as the country itself. this explanation leads to the formulation of following hypothesis for this research study: h2: rural financing has a significant impact on the agricultural technology adoption 2.4. institutional context of lender and agricultural technology adoption the use of agricultural technologies is being promoted by different policies of the developing world. such policies help in promoting their use for an effective outcome. according to (bridle, magruder, mcintosh, & suri, 2020), both macro as well as micro institutions, are considered to have an important impact on the performance of the agricultural sectors especially in the developing countries. for this purpose, the “institutional theory” was also taken into account to understand the impact of institutional behavior on the action of the individuals. however, according to (kebebe, 2019), the lender plays an important role in providing the desired capital to the farmers especially for the promotion of adoption of agricultural technology. many developing countries such as ghana, malaysia and many others, contain many “farmer-based organizations (fbos)” which help the farmers to become a member of such organizations in order to have an easy access to the agricultural credit. according to kumar, engle, and tucker (2018), the credit helps in promoting the behaviors of the farmers to adopt to the agricultural technology. such groups help in saving the farms as they help in providing investments to the farmers. this in return helps in improving the welfare of the farmers. the capital investments made by such groups as well as farmers help in getting new technologies for improving the work. many such technologies include: water irrigation technology, different fertilizers as well as pesticides and uav technology and many others. with the continuously progressing world, the developing countries are also needed to work harder to obtain the desired results (magruder, 2018). the provided loans, credit, investments boost the farmers in putting their full effort to increase the rate of production. the technical efficiency of farmers is considered to be beneficial for them in this process. when the new technologies are entered in the field, different training sessions are held for the rural farmers especially for the developing countries in order to understand the proper working of the technologies in order to obtain better results. according to vinholis, saes, carrer, and de souza filho (2021), different instruments related to policies as well as other extension services also promote the adoption of the agricultural technology by the farmers. this not promotes the economic growth of the country but it also helps in improving the households of the rural farmers. this explanation leads to the formulation of following hypothesis for this research study: h3: institutional context of lender has a significant impact on the agricultural technology adoption 3. method 3.1. data the framework of the present paper is based on the framework of theory of planned behavior and correlates with technological adoption. the present study is focused on evaluating the relationship between the agricultural extension services, institutional context of lender, and rural financing in the context of technological adoption within the context of malaysia. the population of the current study is the malaysian agricultural industry. the study is being developed based on the time series methodology. the study required the collection of secondary data for the factors. the data was collected from malaysian agricultural agencies, world bank group and bank negara malaysia. the table indicates of the primary variables and their descriptions table 1: variable description description dependent ta technological adoption technological adoption refers to the integration, application, and usage of new technology in the society or some industry. in the present study it refers to the application of technology within the agricultural sector. independent rf rural financing refers to the line of credit distinguished by the government and other private vendors for completion of requirements of the agricultural sector. icl institutional context of lender institutional lenders refer to the savings or commercial banks, loan agencies, trusts or any other financial institution that extends credit. aes agricultural extension services refers to the access to technical systems that assist the farmer or agricultural households through educational processes aimed at improving the farming methods and mechanisms. control af access to financial education measures the degree to which the population of malaysia has access to financial education or literacy. agbioforum, 23(2), 2021 | 96 saifan, shibli, hamid, ariffin and tham. — agriculture technology adoption in malaysia: the extension service's role, rural financing… the study is based in malaysia and thus all data was collected from secondary sources within the context of malaysia. the data was collected for the period between 1980-2020, because the economy and agricultural industry of malaysia has grown significantly during this period. 3.2. model specification to evaluate the impact of the associations present between the agricultural extension services, institutional context of lender, and rural financing and technological adoption, the present study is employing the usage of the autoregressive distributed lag. through the application of this technique the short run and long run associations between the factors of interest will be presented. the main objective of the present study was to evaluate the degree to which factors like rural financing, extension services and institutional context of lender predict the technological adoption in the agricultural industry of malaysia. for this purpose, the determinants under consideration for the evaluation have been specified and the economic model is specified as follows: ata = f (aes, rf, icl, afe,) (1) where ata represents the agricultural technological adoption, aes refers to the agricultural extension services, rf refers to rural financing, icl refers to the institutional context of lender and afe refers to the access to financial education. the equation one is transformed into econometric models as follows: 𝐴𝑇𝐴𝑡 = 𝜃0 + 𝜃1 𝐴𝐸𝑆 + 𝜃2 𝑅𝐹 + 𝜃3𝐼𝐶𝐿 + 𝜃4𝐴𝐹𝐸+𝑒𝑡 (2) in the above expression the term 𝜃0 represents the intercept term and the 𝜃1-4 are indicative of the associated parameters of the dependent and control variables. the estimation process of the ardl technique will be used to predict the association in the short and long run for computing the variable dependencies. 3.3. unit root tests it has been discussed in the previous studies that unit root tests provide information about whether the collected data is affected by its own previous values or not. apart from that, the stochastic properties of data and variables can also be found out by using these tests. these tests are based on the null hypothesis and its alternate hypothesis. the null hypothesis shows that unit root is present in the data and it is non stationary in nature. on the contrary, the alternate hypothesis shows that there is no unit root and the data is completely stationary. on the basis of these two types of hypotheses, the results are derived from unit root tests. as author has applied adf unit root test in this particular study, the equation for this test can be written as follows: 𝛥𝑦𝑖,𝑡 = 𝑎𝑖 + 𝜌𝑦𝑖,𝑡 − 1 + ∑ 𝑎𝐽𝛥𝑦𝑖,𝑡−𝐽 𝑝𝑖 𝐽=1 + 𝜀𝑖,𝑡 here 𝛥𝑦𝑖,𝑡 is the difference that 𝛥𝑦𝑖,𝑡shows for ith country for the specific time period of t 3.4. ardl bounds test the study has used the ardl bounds test developed by pesaran, shin, and smith (1996) for detention of long run properties through the evaluation of cointegration among the variables. the bounds test has precedence over other cointegration techniques; it can be used even when the variables are integrated at mixed orders, provides robust results for smaller samples, and it can be used for impartial evaluation of the long-term framework. also, if the value of the f-statistic is greater than the upper and lower bounds, it confirms the presence the long-term association among the variables. the ardl bounds test is depicted through the following equations: 𝛥𝐴𝑇𝐴𝑡 = 𝜃0 + ∑ 𝜃1 𝛥𝐴𝑇𝐴𝑡−𝑖 + 𝑡 𝑖=1 ∑ 𝜃2 𝛥𝑅𝐹𝑡−𝑖 𝑡 𝑖=1 + ∑ 𝜃3 𝛥𝐴𝐸𝑆𝑡−𝑖 + 𝑡 𝑖=1 ∑ 𝜃4 𝛥𝐼𝐶𝐿𝑡−𝑖 𝑡 𝑖=1 + ∑ 𝜃5 𝛥𝐴𝐹𝐸𝑡−𝑖 + 𝛽1𝐴𝑇𝐴𝑡−1 𝑡 𝑖=1 + 𝛽2𝑅𝐹𝑡−1 + 𝛽3 𝐴𝐸𝑆𝑡−1 + 𝛽4𝐼𝐶𝐿𝑡−1 + 𝛽5𝐴𝐹𝐸𝑡−1+𝑒𝑡 in the above equations 𝜽i is the coefficient of the long run multiplier and the βi is the coefficient of the short run multiplier, where i=1,2,3,4, and 5. 3.5. long-run elasticities in the present study first the cointegration of the factors was evaluated to evaluate the long-term association. once the cointegration is confirmed, multiple econometric models are applied for exploring the long-run association among the variables. the following equation was used for the estimation of the long run elasticity of the variables: 𝐴𝑇𝐴𝑡 = 𝛽0 + 𝛽1𝐴𝑇𝐴𝑡−1 + 𝛽2𝑅𝐹𝑡−1 + 𝛽3 𝐴𝐸𝑆𝑡−1 + 𝛽4𝐼𝐶𝐿𝑡−1 + 𝛽5𝐴𝐹𝐸𝑡−1+𝑒𝑡 short-run elasticities whereas the short run equation includes the error correction term which evaluates the propensity of attaining equilibrium in the model: 𝐴𝑇𝐴𝑡 = 𝜃0 + 𝐸𝐶𝑇 + ∑ 𝜃1 𝛥𝐴𝑇𝐴𝑡−𝑖 + 𝑡 𝑖=1 ∑ 𝜃2 𝛥𝑅𝐹𝑡−𝑖 𝑡 𝑖=1 + ∑ 𝜃3 𝛥𝐴𝐸𝑆𝑡−𝑖 + 𝑡 𝑖=1 ∑ 𝜃4 𝛥𝐼𝐶𝐿𝑡−𝑖 𝑡 𝑖=1 + ∑ 𝜃5 𝛥𝐴𝐹𝐸𝑡−𝑖 + 𝑡 𝑖=1 𝑒𝑡 4. results 4.1. descriptive statistics the table 2 represents the descriptive summary of the variables that have been targeted in the study. the table values show that the mean value for access to extension services is 1.4, mean value for agricultural technological adoption is 3.5, rural financing is 4, institutional context of lender’s average value is 3.4, and access t0o financial education is 2.38. the values for standard deviation are small and indicate that the measure of dispersion was low in the data. the table values also indicate of the normality of the variables. from table 2, it can be confirmed that all agbioforum, 23(2), 2021 | 97 saifan, shibli, hamid, ariffin and tham. — agriculture technology adoption in malaysia: the extension service's role, rural financing… the variables are distributed normally. to evaluation of the normality, skewness, kurtosis and the results indicate that all five variables, agricultural technological adoption, agricultural extension services, rural financing, institutional context of lender, and access to financial education are distributed normally. table 2: descriptive summary. ata aes rf icl afe mean 3.58000 1.400000 4.000000 3.400000 2.380394 median 3.50000 1.000000 4.000000 3.500000 2.408482 maximum 4.50000 2.000000 5.000000 4.500000 2.698389 minimum 2.500000 1.000000 3.000000 2.500000 1.998242 std. dev. 0.606905 0.500000 0.577350 0.577350 0.209201 skewness -0.31921 0.408248 0.331456 0.232019 -0.22444 kurtosis 2.217824 1.166667 1.953125 2.246094 2.04754 4.2. unit root test to avoid the issue of spurious regressions, the stationary properties of the variables are evaluated through the application of the unit root test. in time series data, the occurrence of the spurious regressions is a commonality and thus the data needs to be studied. the adf test is applied to study the stationary properties of the data i.e., whether the variance and mean are constant over time and if any trending behavior is present. the results are indicated in the table 3. from the table 3 it can be seen that the five variables i.e., ata aes, rf, icl and afe are non-stationary, but their first order differences are all stationary. this shows that agricultural technological adoption, agricultural extension services, rural financing, and access to education are all integrated at the order one. the stationary properties and process of the first-order differences in the variables indicate that there has been no major shift in the basic characteristics of malaysia’s agricultural processes, change in the technological practices and adoption of education and technology in the industry within the previous 3 decades. table 2: unit root test variables adf kpss at level first diff at level first diff ata -0.16** -6.17 *** 8.1129** -1.7009** aes 0.52 ** -7.78 *** 33.1385** 0.1343 rf 1.18 * -6.12 ** 30.4290** 0.2878 icl 1.19 * -6.12 ** 23.1788** 0.3404 afe 1.08 * -5.09 ** 13.5863** -0.2152 4.3. lag order after the preliminary testing, the researcher proceeded with the lag order selection of the model. the log l, bic, hq and aic lag tests are used for the selection of the appropriate lag order for the model. the study is based on annual data and thus the process was initiated with three lags and then it was reduced to one and zero (altintas & taban, 2011). the aic, hq and sc are very important for lag selection and are renowned for choosing the best lag for all types of variables in the times series data. the table 3 is presenting the values for the lag order tests. one of the characteristics of the ardl model is that it allows the usage of different lags for the independent variables and the dependent variable. according to the results displayed in the model the value of aic, sq and hq for lag 6 is the lowest. as indicated by the table, the lag 6 will be selected for application in the model. table 3: lag order selection lag aic sic fpe hq log l lr 1 -2.110 -1.492 3.43 -2.101 -1.467 3.16 2 -2.131 -1.310 3.59 -2.110 -1.287 3.33 3 -2.110 -1.362 2.90 -1.993 -1.299 2.54 4 -2.172 -1.289 3.87 -2.167 -1.210 3.61 5 -2.103 -1.391 3.98 -2.100 -1.387 3.77 6 -3.143 -1.689 5.91* -3.130 -1.691 5.88** 7 -2.732 -1.391 0.78 -2.693 -1.386 0.84 4.4. f-bounds test once the optimal lag for the model is selected. the researcher used the f-bounds test for evaluating the cointegration of the variables. the variables can only be specified as cointegrating if they show evidence of having similar stochastic trends that lead them to cancel the effects of each other (hendry & juselius, 2000). the literature theoretically and empirically proves the importance of testing the cointegration of data in time series models studies (granger, 2004; hatemi-j, 2020; hendry & clements, 2003; hendry & juselius, 2000, 2001) and, hence, cointegration analysis is important as it allows avoidance of spurious results in the regression model steps (hendry & clements, 2003; hendry & juselius, 2001). the main assumption of the model is that the rural financing, institutional context of lender and the agricultural extension services influence the adoption of agricultural technology in the farm households of malaysia. thus, the measures of the rural financing, institutional context of lender and the agricultural extension services will be able to predict the dependence on the adoption of technological resources. thus, it is probable that these variables may be cointegrated which can lead to the estimation of a stationary variable. the unit root test revealed that the variables are stationary at the first difference. the table below presents the results for the ardl bounds test. the null hypothesis for the test is of no cointegration and it can be rejected as indicated by the table values. the results in the table below clearly indicate that the calculated fstatistic is greater than the critical higher and lower bound values. this shows that there is a stable long-term association between the n the rural financing, institutional context of lender and the agricultural extension services and the agricultural technological adoption. table 4: cointegration f-bounds test null hypothesis: no levels relationship test statistic value signif. i(0) i(1) f-statistic 4.807447 10% 3.2 3.08 k 4 5% 1.56 3.48 2.5% 2.78 4.86 1% 2.29 4.36 4.5. ardl model the results of the initial estimation are presented in the table 5. the values for the table and the parameter coefficients inform of the significance and insignificance among the variables. the results are indicating that the influence of the agricultural extension services is insignificant on the agricultural technological adoption. agbioforum, 23(2), 2021 | 98 saifan, shibli, hamid, ariffin and tham. — agriculture technology adoption in malaysia: the extension service's role, rural financing… however, the impact of the lagged version of aes shows a positive and significant impact on the adoption of agricultural technology in malaysian farmers. thus, a percentage increase in the aes will result in the 0.38 percent increase in the agricultural technological adoption among the malaysian farmers. the impact and effect of rural financing is found to be significant as well. a percentage increase in the rural financing indicates an increase of 16 percent in the agricultural technological adoption. rural financing is an essential facet for the development of the agricultural industry (lakhan et al., 2020; utami et al., 2019). the agricultural countries are promoting the usage of microfinance institutions for facilitating the smallholder farmers and farmers in general so that constraints to credit access can be minimized. the findings of the present study are comparable to abate, rashid, borzaga, and getnet (2016) who found a positive association between the access to institutional and rural finance and agricultural technology adoption. the association between the institutional context of lender and ata is negative and significant. thus, a percentage increase in the icl will result in 44% decrease in the agricultural technology adoption. the r-squared value for the model is 0.87, indicating that overall, the selected variables are responsible for 87% of the variation in the model. table 5: ardl model variable coefficient std. error t-statistic prob.* aes 0.201153 0.163632 1.229301 0.2425 aes(-1) 0.381867 0.143437 2.662270 0.0207 rf 0.167933 0.199871 2.840207 0.0172 icl -0.445211 0.193054 -2.306151 0.0398 afe 1.534732 1.599899 0.959268 0.3564 afe(-1) 2.990921 1.463072 2.044274 0.0435 c 7.886581 99.16247 -2.499818 0.0279 r-squared 0.874578 mean dependent var 3.625000 adjusted r-squared 0.759609 s.d. dependent var 0.575779 s.e. of regression 0.282303 akaike info criterion 0.615180 sum squared reside 0.956339 schwarz criterion 1.204207 log likelihood 4.617836 hannan-quinn criterion 0.771449 f-statistic 7.607034 durbin-watson stat 2.360805 prob(f-statistic) 0.000738 4.6. long run and short run the table 6 is presenting the long run and short run associations for the regressed model. the results from table 6 indicate that aes has a direct and significant impact on agricultural technological adoption. similarly, rural financing and institutional context of the lender have a significant and positive impact on the agricultural technological adoption in the long and short run. table 6: long run and short run estimates variable coefficient std. error t-statistic prob.* long-term equation aes 0.095432 1.965434 1.785443 0.0543 rf 0.231356 1.032145 2.053533 0.0031 icl 0.132134 0.997642 3.635322 0.0000 afe 3.153222 1.094322 3.642111 0.0000 short term equation cointeq01 2.216123 1.645522 2.064662 0.0421 d(aes) 0.317243 0.946611 2.563661 0.0000 d(rf) 0.241115 2.643243 3.842321 0.0000 d(icl) 2.074552 3.163551 0.734422 0.3846 d(afe) 0.533663 1.936553 1.999362 0.0283 c 1.2413 1.366361 2.144742 0.0103 4.7. heteroscedasticity the results from the table indicate that the heteroscedasticity is absent from the model as indicated by the results below. table 7: heteroscedasticity f-statistic 0.627143 prob. f(6,18) 0.7067 obs*r-squared 4.322567 prob. chisquare(6) 0.6331 scaled explained ss 0.912357 prob. chisquare(6) 0.9887 5. discussion the adoption of agricultural technology is becoming very important in today’s era due to high competition as well as different risk factors. such technology helps in improving the production of the crops as well as to reduce the workload of the farmers. different internal as well as external factors are found to have an impact on the “agricultural technology adoption”. this research study was conducted to determine the impact of different variables including: agricultural extension services, rural financing and institutional context of lender on the agricultural technology adoption. for this purpose, a model was developed to determine the significance of the hypotheses. this study showed three important results. firstly, the agricultural extension services were found to have a significant impact on the adoption of agricultural technology by the farmers. such services has a good impact on the overall attitude as well as behavior of the farmers and they become more prone towards adopting new technologies for effective outcomes. according to emerick and dar (2021), the “information and communication technology” mechanisms should be promoted to spread awareness about the significance of technology to the farmers so that they could be encouraged enough to make their decisions for implementing such technologies. according to kassem, alotaibi, muddassir, and herab (2021), as the male farmers are considered to be the feeding tubes for the households in the rural areas of developing countries, their adoption to the agricultural technology in considered to be essential than the adoption of the female farmers. this shows the significance impact agbioforum, 23(2), 2021 | 99 saifan, shibli, hamid, ariffin and tham. — agriculture technology adoption in malaysia: the extension service's role, rural financing… of the agricultural extension services on adopting new technologies (nyarko & kozári, 2021). the technical efficiencies of the farmers are also improved by holding different training sessions as well as educational programs. secondly, the relationship between rural financing and agricultural technology adoption, was found to be significant. according to nakano, tsusaka, aida, and pede (2018), the investments play an important role on encouraging the farmers to go for the agricultural technology. many scholars have observed that the promoted wealth in the rural areas of the developing countries, encourage farmers to opt the new technologies. even though they are provided with the necessary capital to go for this option. according to ugochukwu and phillips (2018), the increase in “rural incomes” provide the opportunity for the rural farmers to increase the production. globally the rural areas are found to be in crisis due to the shortage of the investments so, different countries have taken initiatives to provide the necessary capitals to the rural farmers to improve this situation. thirdly, the institutional context of lender was also found have a positive impact on the agricultural technology adoption by the farmers. different strategies are being used around the globe to improve the households of rural farmers in developing countries. according to chavali, kishore, and narayana (2020), different organizations are formed in different developing countries for this purpose. such organizations help in reforming the policies as well as regulations and also provide needed investments or credits to the rural farmers for their effective growth. according to kumar, engle, and tucker (2018), the credit helps in promoting the behaviors of the farmers to adopt to the agricultural technology. this improves the overall production activity of the farmers thus leading them to a better household and increased incomes. 6. conclusion as the development in technology is being progressed day by day. it is being used in different fields of the work around the globe. even in the agricultural field, the new technologies are being introduced for improving the production as well as reducing the prices. this also helps in improving the income of the farmers especially in the rural areas of the developing countries. different factors are found to have an impact on the attitude as well behavior of the rural farmers towards adopting the agricultural technologies. many studies have been conducted in the past to determine the impact of internal as well as external variables on the adoption of agricultural technology by the farmers. the current study is also conducted for this purpose. however, the main focus of this research study to determine the impact of different variables such as agricultural extension services, rural financing and institutional context of lender on the agricultural technology adoption. for this purpose, the time-series method was used to collect the data. a model was developed by considering the impact of all these variables on the adoption of the agricultural technology by the farmers. the findings from this research study showed that all of the above mentioned variables have significant impact on the agricultural technology adoption by the farmers. such mobility not only helps in improving the crop production but it ultimately leads to better households of the rural farmers (ouattara, xiong, traoré, turvey et al., 2020). thus, it was concluded that with proper provided investments and trainings as well as awareness, the agricultural system of the developing countries could be improved. 7. limitations and future research indications for this research study, limited literature review was available as almost no such study was conducted in the past. however, the current study will help the future researchers in order to have a better understanding of the needs for the adopting of agricultural technology. the impact of only few variables (including: agricultural extension services, rural financing and institutional context of lender) on the adoption of agricultural technology, was considered for this research study. however, many other variables are also found to have a substantial impact on the agricultural technology adoption such as education, bank finance and many others. so, such variables should be considered by other scholars while conducting a research. the secondary data is used for this study. however, other such studies should also be conducted using the primary data in order to have a better analysis as well as comparison with other such conducted studies to improve the information needed to opt for the agriculture technologies by the farmers. however, as the current study was conducted in the context of malaysia using the time-series data. the cross-sectional studies should be promoted to have a detailed and better knowledge about the topic. even though the rural areas of the developing countries are considered to be the hot spots for such studies, the agricultural sectors of the developed countries should also be studied in order to fill the gap. 8. implications this research study helped in providing the literature review for future studies. it helped in determining the significance of adoption of agricultural technology by the rural farmers. different extension services are promoted for improving the behavior as well as attitude of the rural farmers towards the adoption of agricultural technology. different organizations are formed to support the rural farmers by providing them with the required capitals and supporting them to make initial investments for effective outcomes. this not only helped in improving the productivity of the crops but it also helped in the betterment of the households of the rural farmers by increasing their incomes. different educational programs as well as training sessions are held to promote the technical efficiencies of such farmers encouraging them to adopt the agricultural technologies. most importantly different policies were developed which helped in promoting the use of agricultural technology especially in the rural areas of the country by introducing their benefits and productivity. such policies were not only significant for the farmers of malaysia. but they were also 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"oil and gas developments are marked by large expenditures," the literature also suggested (hashim, sultan, al maliki, & al-ansari, 2020; huntington, 2018). the dynamics and infrastructure of the oil sector have also made the application of project management processes compelling. "they also have huge interfaces and sophisticated technical endeavors." in the iraqi oil and gas sector, the key causes for project difficulties are bad management and expenditure. in 2009, the ioc has awarded a service contract for 25 years of investment to bp, rds, eni, statoil and exxon, the international oil company (ioc); in reality, the form of contract is the technical service contract (tsc) which means a profitsharing contract with iraqi moo (ministry of oil). an oil production contract is a financial and legal mechanism used by certain oil-producing countries to work with foreign petroleum companies (iocs) to produce oil. the multinational petroleum corporation incorporates technology and early financial spending into an oil production deal. the iocs awarded the filedwise contracts (with its original partners) to rumaili, zubair, west qurna-i, west qurna-ii, majnoon, halfaya, and gharraf oil field (al-fehdly, elmaraghy, & wilkinson, 2019; jaccob, 2020). the iraqi crisis of the economy is not the outcome of today's shocks of oil prices. but it is also a result of the financial sector's underlying imbalances that do not move at a rate to counter oil price shocks. the iraqi economy needs to reduce petroleum prices because of the stoppage of oil exports imposed by the un security council economic sanctions following a war between iraq and kuwait that has caused gdp and unemployment rates to decline and the government to invest more. in the current monetary edition the monetary strategy, with inflation rates approaching the hyper-inflation levels, facing the state budget's deficit due to higher government spending, including the cost of restoring the war-torn state (saleh, hamad, & hama, https://orcid.org/0000-0002-4928-3430 agbioforum, 23(1), 2021 | 2 thawrah latif jassim — the influence of oil prices, licensing and production on the economic development 2021). the impact of the iraqi economy was on oil shocks (2010-2011-2012-2013) that led to high petroleum prices, rising gdp, and public spending, thereby increasing inflation. iraq has also been subjected to the negative oil shock following the second half of 2014, owing to low oil prices, low gdp payments and marginally increasing inflation and unemployment (ji & fan, 2016; joumayle, 2017). because of the conditions that the state went through and the economic embargo put on it after the invasion of kuwait, gdp has fluctuated greatly. it should have been priced (10682.0) million dinars in 1991 at the cost of (29711.1) million dinars in 1990, representing low government budgets of (236316.6) million dinars for 1990 and (97205.5) million dinars in (24.52 to 21.54) us dollars per barrel for 1990 and 1991 respectively. gdp increased to 40344.9 million dinars in 2002 in the following years. the consequence of the memorandum of understanding (oil for food and medicine), which enabled iraq to export part of its crude oil production, was this rise in the volume of its production and also due to the increase of oil prices to $26.18 a barrel. this led to the government's expenditure increasing to (66362.8) million dinars, especially as it grew to (33905.3) million dinars, while investment expenditure is (23561.1) million for 2002. the price soared in 2004 to $41.51 a barrel and the amount of gdp (41608) million dollars increased in 2004 because of the direct relationships between the oil price and production. the price of the oil went up in 2003, creating a petroleum shock. in both of 2014-2015, the price of oil rose by 93.17 percent (48.66 percent) us dollars a barrel in the years 2014-2015, both of which started to increase in the second half of the year 2014. due to the decline in gdp (75581.3) of the total budget of the state (3931309.7) million dinars in 2014, while total government expenditure rose in 2015 to 1330935.1 million dinars due to increased military spending in battling the militant groups dominating nearly twothirds of the country. the gdp decrease is 42835 million (hussein, 2019; smyth & narayan, 2018). figure 1 shows iraq’s oil production capacity in 20202021. figure 1: oil production in iraq in 2020-2021 this is the reason the iraqi government worries about oil fields in southern iraq, the us energy information administration notes that the 85 percent oil reverse is in southern iraq. the principle of analysis stems from the major issue of oil in iraq. a difference in previous studies has been noted. the concern is that hadi (2017) reported that since 2009, ioc has spent in iraq the largest oil fields. they expect to increase the production, selling, and exploration of oil, to be resolved and carried out in 2017, but iraq's petroleum infrastructure has limited the schedule of operations. as oil exports rise, global oil demand is projected to rise by up to 50 percent, based on demand since 2005, by 2030. 2. literature review many countries have an enormous wealth of natural gases and crude oil which is a high level of luxury for the economic conditions (nawaz et al., 2020). although, wealth is sometimes exploited by the countries themselves due to high loans from international economies strong policies and effective controls could bump their economies. this states the positive contribution of oil production toward the economic conditions of developing countries. the different mechanism has been discussed while emphasizing the international oil prices which poses a significant impact on the currency of relevant countries (zhou, yu, & li, 2017). it is the intentions of purchasing which are related to the extensions of chains in industries. considerably, the fluctuation in oil prices is wider scope for the 0 1000 2000 3000 4000 5000 mar-20 apr-20 may-20 jun-20 jul-20 aug-20 sep-20 oct-20 nov-20 dec-20 jan-21 feb-21 oil production bbl/d/1k bbl/d/1k agbioforum, 23(1), 2021 | 3 thawrah latif jassim — the influence of oil prices, licensing and production on the economic development developing countries to earn more than their neighbors. in this context, the oil prices are referred to as international economies which insert slight changes toward the oil prices. many countries are dependent on international oil prices due to their level of purchases and imports. petrol is the necessity of every country because most of their machinery is dependent on oil. during the regime of inflation, the change in oil prices has passed through different countries while impacting the exogenous factors of economies (waleed, akhtar, & pasha, 2018). this impact is contributed by the core elements of macroeconomic which widely states the failure and success of economic development (nawaz et al., 2021). among the countries having natural resources of oil, the trade of oil is processed in the universal currency which poses an impact on the currency of developing countries. most of the developing countries also produce oil internally but being treated in an international currency is again a barrier to their selfsustainability. different countries like iraq and iran are huge producers of oil but due to the immense policies of great countries they are unable to sale it in their own currency. the speculative volatility in resources and oil prices shapes the influences termed in many oil-producing countries (tamba, 2017). this shaping defined the significant rounds of international oil prices important in economic development. economic development is directly linked with the fluctuation of oil prices because of earning relevancy. this linkage significantly defines the ultimate relation between economic development and international oil prices. change in the international price of oil directly states the impact toward developing countries that are indulged in importing oil from other countries. international oil prices positively instigate its influence on economic development with many other factors. a significant relationship exists among the economic growth, financial development, production of oil, and international oil prices (sen & uzunoz, 2017). this linkage defined the consistency of pricing elements which are important toward economic development (sun et al., 2020). while observing the defined change in international oil prices, the effects on households are also certain. although, the household is a major contributor toward economic development the change in international prices is more relevant to the economic conditions. this uplifts the larger contribution of developing countries that are dependent on oil resources. it illustrates an ultimate effect on the services and goods though because of its involvement in economic development. the relationship between economic development, economic growth, and oil consumption with a change in prices is evident in most asian countries (rustamov & adaoglu, 2018). it states the clear indication of increasing oil consumption with fluctuating oil prices on the economic conditions. during the bad economic conditions of oil-producing countries, many countries have attained licenses of oil selling to support their economies. this is a positive contribution widely seen in most of the arab countries which have higher resources of oils. these higher resources are considered as a larger supporter of the economic conditions which have been disrupted due to some adverse conditions. with the indicators of environment, the licensing is based on the sectors of gas and oil which are emphasized in many developed countries with supportive requirements of oil trade (lyall & valdivia, 2019). this trends in the challenging conditions of economies that plan the economic development structures. the rounds of licenses are started in the countries which have been indulged in the internal exploration of oil and seek deposits for the extraction of petroleum. it states the feasibility toward the economic development which varies with resources and minerals. the licenses are issued around to the developing countries for selling as well as the exploration of oil from their countries to selfsustainability in economic conditions. economic growth and crude oil are significantly related to each other with the efficiency of energy policies (de oliveira bredariol, 2020). this promotes the transparency of oil management for better economic development circumstances. licenses are issued on the basis of bid programs which could be supportive to the hosting countries though. therefore, countries facing bad economic conditions have an alternative to recover the economic discrepancies through the licensing rounds. these rounds perform differently in the terms of demands and innovation. usually, the license is granted to the companies for joining in ventures by fulfilling the obligations defined in licenses. the development of new service contracts to the oil selling companies and countries has been posed as eminent in economic development (de cárdenas garcía, 2017). most governments recognize the outsource elements in oil licensing rounds that could help in the sustainability of economic conditions. within the trade of oil, many countries are dependent on lease agreements with oil-producing countries. ultimately, the oil-producing countries issue licenses to the countries which fulfill the conditions stated by hosting countries. this explains the dominant impact on economic development. strong policies toward the oilselling countries also dominate the rounds of licenses that are mandatory for being indulged in international trade. in turkey, the shocks of oil consumption are agbioforum, 23(1), 2021 | 4 thawrah latif jassim — the influence of oil prices, licensing and production on the economic development directly linked to economic growth and are also considered as sensitive in some economic conditions (benramdane, 2017). it uncovers the elements which are hidden under the oil licenses as well as economic development. oil contributes a major portion toward economic development whether pertinent to production or consumption. it clearly states a significant impact on the economic conditions. is increasing in licensing authorities could also pose a negative impact on economic development. therefore, for high economic conditions, the oil license rounds could be primarily important in uplifting the developing economies. some uncertain conditions of the international conditions are also important for issuing licenses to raise prominent era in the economic development. among the oil-rich countries, the volatility of economic growth and volatility of oil prices are linked with each other (albulescu, oros, & tiwari, 2017). usually, this volatility is affected by the natural curse of resources that are disrupted due to the cost elements. during the indecent conditions of international economies, many countries have been founded in hiking demand for oil. among many exporters of oil, the prices have been depicted as decreasing which is taken by most of the developing countries. for the evident economic conditions, the international oil demand plays a vital role. this role also states the prevalence of international oil which is dominant among the oil-consuming countries. the demand for oil has depicted the nonlinear impact due to the involvement of international agencies operating individually (yu & zhang, 2019). this demand for oil has also observed the trade internationally which impacts the economic development. the high use of machinery and vehicles internationally also contributed to the increasing demand for oil. instead of developed countries, many developing countries have also been countered in importing oil due to the rise in vehicle usage. therefore, the increasing international demand for oil sometimes poses a significant as well as insignificant impact on economic development. this is due to seek of power globally which could also be damaging to the human. china has played a vital role in the hike of international demand for oil by placing demand and maintaining high storage (wu, liang, yang, & chou, 2020). this changed the dynamics of global oil prices where the single country dominated among many other countries supplying and demanding oil. some patterns of oil have been seen influencing economic development. this change is the clear adjustment of consumption and production events which are probable in the rising demands of oil internationally. the consistent rise in demand for oil also helps in rising the economic development which also elaborates the frequency of benefits to the developing countries. this frequency provides many corresponding elements which are influential toward economic development. stock markets are also importantly described in the developing countries facing the influence of oil demands and frequent change in oil prices (shlimon et al., 2020). this is pertinent with the consistency in supply effects which are distinguished with the variability of stock returns for economic development. the demands and supplies of oil are important elements that contribute a significant portion to economic development. internationally, the oil demands have instigated a prominent influence on the economies of some countries which have a lack of oil resources. due to consistent usage of machinery, the oil demand is increased internationally among many companies. a hike in oil prices has stated the downturn conditions for the economies which have faced immense recession. in some countries, the abundance of economic growth and oil are defined with the prevalence of curse in natural resources (d. o. olayungbo & adediran, 2017). this is a clear indication of a long-run association between economic growth and oil revenue. frequent oil shocks have been highlighted in the international trends which not only enhanced the demands of international oil but also directly impacted the economies. these large shocks of oil also increased the production as well as the demand internally. the wonders of change in oil prices have depicted a positive contribution to economic development. mostly, the oil-producing countries have more benefited themselves due to the international hike in demand and supplies. the effects of quality of institutions and oil revenue are dominated over the economic growth with the relevance of oil demands (koh, 2017). it confirms the policies and procedures which are attractive toward economic development. during the indefinite conditions of international economies, the capacity of oil production has been restrained which states a negative indication to the economic development. usually, the capacity is linked with the consumption of oil in other countries which are usually prevalent in oil production. various measurements of oil production in the oil-producing countries have posed plenty of elements for the development of effective policies for oil capacities. various communities have inserted a vital role in the oil production capacity with the composition of consumption and supply (joumayle, 2017). the pertinence of oil capacity in some countries has a dominant impact on economic development is emphasized internationally. this induced positive policy development which is beneficial for the oilagbioforum, 23(1), 2021 | 5 thawrah latif jassim — the influence of oil prices, licensing and production on the economic development producing countries to uplift capacity measures of oil production. during the critical conditions of international economies, the extra capacity elements are beneficial for the developing countries which could help themselves through storage. the iraqi oil described the prominent institutional change that irrupted the production of oil and its capacity (hülse & camponogara, 2017). this stated the change of performance in the trade of oil which lasted an impact on economic development. the hiking demands of oil by oil-importing countries have forced the oil-producing countries to develop effective policies in oil production. this led the oil-producing countries in developing alternative capacities beyond the actual demands which have uplifted the economic development. different countries have different storage measures for oil production which vary upon the demand as well as consumption. some robust formulations are required in the economic development by setting the wells of oil (das, bhatia, pillai, & tiwari, 2018). this optimization of oil production capacity is a positive measure toward economic sustainability. some countries have huge production but the level of capacity for storage is not steady due to lack of resources and economic conditions. therefore, the oil production capacity is the mandatory element for oil-producing countries. this mandatory requirement could also benefit the countries in uplifting the economic conditions. most of the consumption of oil and production of oil are interrelated with each other due to the confronting situations of competitors internationally. while elaborating on the elements of oil, the certainty of other macroeconomic elements asserts impact on the economic development (chekouri, chibi, & benbouziane, 2017). the demands for oil have been enhanced due to the outpacing gains in excess capacity and oil production. this states the increasing urbanization and industrialization posing significant economic development. trends of oil production capacity sometimes also result in losses due to lack of demand in the international markets which also influences economic development. the benefit of capacity also beneficial in the high demands when the consumption of oil increases. the relationship between the prices of oil and the economy of many countries has been revisited due to consideration of other proxies (aloui, hkiri, hammoudeh, & shahbaz, 2018). the driven supply of oil is positively related to the capacity of oil production which dominates in economic conditions. with the involvement of development in the capacity of oil production, the cycles of growth could be prominent in economic development. 3. research methods the present research investigates the influence of oil prices, oil licensing round, oil demand, oil production, and oil sector development on the economic development in iraq. this study has followed the quantitative methods and extracted secondary data from wdi and trading economies from 1981 to 2019. this study has developed the equation based on past literature given below: 𝐸𝐷𝑡 = 𝛼0 + 𝛽1𝑂𝑃𝑡 + 𝛽2𝑂𝐿𝑅𝑡 + 𝛽3𝑂𝐷𝑡 + 𝛽4𝑂𝑃𝐶𝑡 + 𝛽5𝑂𝑆𝐷𝑡 + 𝑒𝑡 (1) where; ed = economic development t = time period op = oil prices olr = oil licensing round od = oil demand opc = oil production capacity osd = oil sector development this study has taken the economic development (ed) as a dependent variable and measured as gdp growth (annual percentage). in addition, five predictors have been used by the study such as oil prices (op) measured as the changes in oil prices (the base year 1980), oil licensing round olr) is measured as the time required to obtained the license (days), oil demand (od) is measured as the oil consumption (% of gdp), oil production capacity (opc) is measured as the oil production (% of gdp) and oil sector development (osd) is measured as the oil sector development expenditures (% of gdp). these constructs with measurements are shown in table 1. table 1: variables with measurements s# variables measurement sources 01 economic development gdp growth (annual percentage) world development indicators 02 oil prices changes in oil prices (the base year 1980) trading economics 03 oil licensing round the time required to obtain the license (days) world development indicators 04 oil demand oil consumption (% of gdp) trading economics 05 oil production capacity oil production (% of gdp) trading economics 06 oil sector development oil sector development expenditures (% of gdp) trading economics this research has shown the descriptive statistics showing the means, minimum and maximum values, and standard deviation. this study has also shown the correlation matrix to check the multicollinearity and agbioforum, 23(1), 2021 | 6 thawrah latif jassim — the influence of oil prices, licensing and production on the economic development nexus among the variables. this study has executed the adf unit root test to check the stationarity of the variables, and if the probability values are less than 0.05 at level, then variables are stationary at the level and vice versa. the estimation equation for adf is as follow: 𝑑(𝑌𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑌𝑡−1 + 𝑑(𝑌𝑡(−1)) + ɛ𝑡 (2) the individual equation for each variable related to the adf is given as follow: 𝑑(𝐸𝐷𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐸𝐷𝑡−1 + 𝑑(𝐸𝐷𝑡(−1)) + ɛ𝑡 (3) 𝑑(𝑂𝑃𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑂𝑃𝑡−1 + 𝑑(𝑂𝑃𝑡(−1)) + ɛ𝑡 (4) 𝑑(𝑂𝐿𝑅𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑂𝐿𝑅𝑡−1 + 𝑑(𝑂𝐿𝑅𝑡(−1)) + ɛ𝑡 (5) 𝑑(𝑂𝐷𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑂𝐷𝑡−1 + 𝑑(𝑂𝐷𝑡(−1)) + ɛ𝑡 (6) 𝑑(𝑂𝑃𝐶𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑂𝑃𝐶𝑡−1 + 𝑑(𝑂𝑃𝐶𝑡 (−1)) + ɛ𝑡 (7) 𝑑(𝑂𝑆𝐷𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑂𝑆𝐷𝑡−1 + 𝑑(𝑂𝑆𝐷𝑡(−1)) + ɛ𝑡 (8) this study has also executed the ardl to examine the relationships among the variables, and the estimation equation for ardl is as under: ∆𝐸𝐷2𝑡 = 𝛼0 + ∑𝛿1∆𝐸𝐷𝑡−1 + ∑𝛿2∆𝑂𝑃𝑡−1 + ∑𝛿3∆𝑂𝐿𝑅𝑡−1 + ∑𝛿4∆𝑂𝐷𝑡−1 + ∑𝛿5∆𝑂𝑃𝐶𝑡−1 + ∑𝛿6∆𝑂𝑆𝐷𝑡−1 + 𝜑1𝐸𝐷𝑡−1 + 𝜑2𝑂𝑃𝑡−1 + 𝜑3𝑂𝐿𝑅𝑡−1 + 𝜑4𝑂𝐷𝑡−1 + 𝜑5𝑂𝑃𝐶𝑡−1 + 𝜑6𝑂𝑆𝐷𝑡−1 + ɛ1 (9) finally, the present research has estimated the error correction model (ecm) by using the following equation: ∆𝐸𝐷𝑡 = 𝛼0 + ∑𝛿1∆𝐸𝐷𝑡−1 + ∑𝜑2∆𝑂𝑃𝑡−1 + ∑⍵3∆𝑂𝐿𝑅𝑡−1 + ∑𝜃4∆𝑂𝐷𝑡−1 + ∑𝛶5∆𝑂𝑃𝐶𝑡−1 + ∑¥6∆𝑂𝑆𝐷𝑡−1 + 𝛿𝐸𝐶𝑀𝑡 + 𝜐𝑡 (10) 4. results this research has shown the descriptive statistics showing the means, minimum and maximum values, and standard deviation. the on average ed is 4.098, while op means the value is 0.394. in addition, on average, olr is 201.4, while on average, od is 0.325. finally, the mean value of opc is 0.365 and osd is 0.351. these values are highlighted in table 2. table 2: descriptive statistics variable mean std. dev. min max ed 4.098 2.554 1.055 11.763 op 0.394 0.225 0.202 0.463 olr 201.4 0.541 115.0 247.0 od 0.325 0.852 0.289 0.604 opc 0.365 0.414 0.245 0.410 osd 0.351 0.421 0.242 0.664 this study has also shown the correlation matrix to check the multicollinearity and nexus among the variables. the values highlighted that the no multicollinearity issue in the data because the values are lower than 0.85. in addition, the nexus among the op, olr, od, opc, osd, and ed is positive because the values have shown positive signs. these values are shown in table 3. table 3: correlation matrix variables ed op olr od opc osd ed 1.000 op 0.481 1.000 olr 0.435 0.435 1.000 od 0.639 0.570 0.575 1.000 opc 0.593 0.414 0.443 0.319 1.000 osd 0.451 0.387 0.524 0.321 0.695 1.000 this study has executed the adf unit root test to check the stationarity of the variables, and if the probability values are less than 0.05 at level, then variables are stationary at the level and vice versa. the values highlighted that op, olr, opc, and osd are stationary at a level while ed and od are stationary at first difference. these values are highlighted in table 4. table 4: unit root test augmented dickey-fuller test (adf) level t-statistics p-values ed i(1) -7.739 0.000 op i(0) -4.013 0.013 olr i(0) -6.245 0.020 od i(1) -7.699 0.000 opc i(0) -5.285 0.000 osd i(0) -2.325 0.000 agbioforum, 23(1), 2021 | 7 thawrah latif jassim — the influence of oil prices, licensing and production on the economic development the ardl bound test is executed to examine the correlation, and the results indicated that the calculated f-statistics 5.68 is higher than the critical values that show the correlation exists in the model. these values are shown in table 5. table 5: ardl bound test model f-statistics lag level of significance bound test critical values i(0) i(1) ed/(op,olr,od,opc,osd) 5.68 4 1% 4.41 4.77 5% 3.27 3.69 10% 2.23 2.49 this short-run analysis of the ardl approach has revealed that oil prices, licensing round, oil demand, oil production, and oil sector development have a positive and significant association with economic development in iraq because the positive signs are associated with beta values, and t-statistics are larger than 1.64 and pvalues are lower than 0.05. the r square value 0.5466 has shown that 54.66 percent variations in ed are due to the understudy variables. these links are mentioned in table 6. table 6: short run coefficients variable coefficient std. error t-statistic prob. d(op) 0.420860 0.160242 2.626403 0.0310 d(olr) 0.476452 0.241029 1.977115 0.0413 d(od) 8.601202 1.991072 4.319885 0.0048 d(opc) 0.190552 0.108634 1.754138 0.0491 d(osd) 0.421462 0.142542 2.956757 0.0062 cointeq(-1)* -1.284823 0.283171 -4.537269 0.0000 r-squared 0.546651 mean dependent var -0.050852 adjusted r-squared 0.535255 s.d. dependent var 2.225322 the long-run analysis has revealed that licensing round, oil demand, oil production, and oil sector development have a positive and significant association with economic development in iraq. these values are shown in table 7. table 7: long term coefficients variable coefficient std. error t-statistic prob. op 0.288623 0.319853 0.902361 0.2622 olr 2.892114 1.244177 2.324519 0.0332 od 0.285651 0.161687 1.766691 0.0421 opc 2.562038 0.643211 3.983199 0.0025 osd 1.662782 0.323915 5.133389 0.0000 c 0.855174 0.278095 3.075115 0.0055 5. discussions and implications the study results have indicated that the international oil prices are positively linked with the economic development of a country. the study indicates that when the oil prices in the international market are high, a particular country that is engaged in the exports of oil has more foreign exchange, and there are more exploration and refining of oil within the country. thus, there is high economic growth. these results are in line with the past study of wen, min, zhang, and yang (2019). this study examines the change in international prices of oil and their influences on the economy of a particular country. it shows that when the oil prices are high at the international market, the inland oil exploration and refining activities are stimulated, and the economic growth increases. these results are also in line with the past study of troster, shahbaz, and uddin (2018), which shows that the companies which deal in the exploration and refining of oil, and which contributes to the exports of oil products, enjoy more profits and have more productivity in case the international prices are high. in this way, the economy has a high rate of growth. the study results have also indicated that the oil licensing round has a positive relationship with the economic growth of the country. the high frequency to allow the lease of an exploration acreage to oil exploration companies triggers their commercial activities. thus, their financial performance is high, and the economic growth increases. these results are in line with the past study of awodumi and agbioforum, 23(1), 2021 | 8 thawrah latif jassim — the influence of oil prices, licensing and production on the economic development adewuyi (2020), which reveals that when an oil exploration company performs under regulations with a great sense of responsibility and enhances the economic growth of the country, the concerned government authority reissues the oil exploration license. thus, the high share of oil exploration into the local supply and exports leads to high economic growth. these results are also supported by the past study of d. olayungbo and olayemi (2018), which shows that oil is used as an energy source and making many food items; thus, the high license round leads to the stimulation in economic activities and rise to economic growth. the study results have revealed that the international oil demand has a positive association with the economic growth rate of the country. these results are supported by the past study of brini, amara, and jemmali (2017), when there is a high demand for the oil products in the international market, there are high oil prices, a large amount of foreign exchange, and high oil exploration and production within the country. this all indicates the high economic growth of the country. these results are also supported by the past study of aloui et al. (2018), which shows that the countries which have high international demand for the local oil products have high economic growth as there is a high oil exploration, refining, and production of oil products, and thus, the high employment rate in the country. the study results have also indicated that the oil production capacity of the country has a positive association with its economic growth. the more the oil production capacity of the country, the more is the fulfillment of local and international market demands of oil. these results are in line with the past study of dash, sethi, and bal (2018), which indicates that in the countries which have more capacity for exploration and production of crude and refined oil, there is more employment and more productivity in other economic sectors. it also enables the country to export its oil products to several foreign countries, which increases the foreign exchange earnings. this all determines a high economic growth rate. these results are in accordance with the study of tamba (2017), which indicates that as the oil products are used as an energy source or as a raw material in many economic organizations, the production of crude and refined oil has great economic significance. the capacity of the country to explore and produce oil products determines the productivity and employment within the country, and thus, it drives the economic growth rate of the country. the study results have also indicated that the oil sector development has positive impacts on the economic growth of the country. the high development in the oil sector provides a large amount of oil supply to meet local oil needs and to export the oil products to earn foreign exchange. thus, oil development leads to high economic growth. these results are in line with the past study pramudya, hospes, and termeer (2017), which indicates that the high rate of development in the overall oil sector stimulates activities in all the other economic sectors because it meets the energy needs in that sector. in this way, the development in the oil sector gives a chance to the economy to grow at a high rate. these results are also supported by the literary work out of ogbonna, mobosi, and ugwuoke (2020), which the importance of oil sector development in a developing economy like nigeria. this literary workout suggests that the country where there is high development in the oil sector has a high economic growth rate. first, this creates stimulation in the economic activities by providing them energy source and raw-material, and the surplus oil quantity can be exported to earn foreign exchange. theoretical, as well as an empirical implication, has been carried on by this study. it has great theoretical significance because of its contribution to the literature on the economy. our study expands the scope of literature as it deals with the influences of five oil factors like international oil prices, oil licensing round, international oil demand, oil production capacity, and oil sector development on the economic growth rate of the country. many studies have dealt with the aforementioned factors and checked their influences on economic growth, but they have done so separately. so, our study is a distinction as it addresses the influences of all these factors simultaneously. the study suggests that the international oil prices, oil licensing round, international oil demand, oil production capacity, and oil sector development contribute a lot to the economic growth of the country. this study also has a great empirical significance in an emerging economy like iraq. this study is suitable for the upcoming researchers while examining this area in the future and also guided the regulators while developing the regulations related to the oil sector development and economic development. this study gives a guideline to the economists on how to increase the economic growth rate of the country with high international prices, highly frequent oil licensing round, increasing international oil demand, high oil production capacity, and high rate of oil sector development. 6. conclusion our study aims at examining the change in the economic growth rate in iraq due to change in economic factors like international oil prices, oil licensing round, international oil demand, oil production capacity, and oil sector development. our study examines that the change agbioforum, 23(1), 2021 | 9 thawrah latif jassim — the influence of oil prices, licensing and production on the economic development in international oil prices influences a great the economic growth of the country. when the oil prices in the international market increase, the countries which deal in the export oil products have more economic growth as the high prices, the international market gives more foreign exchange, and there are more exploration and more production of oil production in the country. the oil licensing round leads to the high economic growth rate of the country. when the government frequently reissues the license for oil exploration and production, there is a large amount of oil exploration and high productivity in oil and other sectors in the country. thus, there is high economic growth. the study suggests that the international oil demand influences the economic growth rate of the country. when there is a high demand for the local oil products in the international market, the productivity in the sector increases within the country and gives high economic growth. similarly, the study suggests that in the countries which have more oil exploration and production capacity, there is more productivity in all the economic sectors, including the oil sector and high employment rate. this leads to high economic growth. the study highlights that when the country has high development in the oil sector, there is fluency in the economic activities as the oil sector meets the energy needs of many economic enterprises, thus, determines the high economic growth. the present study has certain limitations that require the attention of future authors. first of all, the study has addressed only oil-related factors like international oil prices, oil licensing round, international oil demand, oil production capacity, and oil sector development as the drivers of economic growth. while there are many other economic factors that have a deep impact on the economic growth of the country, but these factors have not been explored by this study. for the broader scope of the study, future authors are recommended to address more factors. moreover, the author has extracted the quantitative data regarding the contribution of the aforementioned factors in achieving high economic growth from a limited time of 1981 to 2019. the data extracted from a limited time is limited both in quantity and validity. therefore, the author who will intend to replicate this study in the future must extract data from a larger period. references al-fehdly, h., 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(2017). effects of fluctuations in international oil prices on china’s price level based on var model. journal of discrete mathematical sciences and cryptography, 20(1), 125-135. doi: 10.1080/09720529.2016.1178909 agbioforum, 23(2): 113-122. ©2021 agbioforum a time series analysis to enhancing net revenue of farming in malaysia through agriculture extension and risk aversion sobhia saifan al-ahliyya amman university, hourani center for applied scientific research email: s.saifan@ammanu.edu.jo rida shibli al-ahliyya amman university, hourani center for applied scientific research email: r.shibli@ammanu.edu.jo mohd shukri ab yajid management and science university email: shukri@msu.edu.my https://orcid.org/0000-0001-5688-4392 junainah abd hamid management and science university email: junainah@msu.edu.my https://orcid.org/0000-0003-3078-6123 s.m. ferdous azam management and science university email: drferdous@msu.edu.my https://orcid.org/0000-0002-0001-3595 farming and agricultural industry is prone to risk due to factors that are beyond the control of farmers like weather, and this can lead to adversely affecting the farm income. because the farmers are found to be risk-averse, it is essential to focus on the impact that it can create on the net income of the farm. another, facet of the agricultural industry and revenue is the exposure and access to extension services. extension services assist the farmers through educational processes and work through the improvement in the farming procedures and practices. these services and practices can lead to substantiating the net revenue of the farms through adoption of profitable practices. thus, the focus of the present study is on evaluating the impact of risk aversion and agricultural extension on the net revenue of farms in malaysia. the study adopts a time series approach and adapts the dynamic time series model for studying the associations among the variables in the long and short run. the study found evidence of cointegration and lack of stochastic issues in the data. the results from the estimation indicated that agricultural extension leads to improved net revenue for the farms. however, risk aversion pertains detrimental effects to the profitability and revenue of the farming households. the study has important implications and policy recommendations. keywords: agricultural extension, risk, risk aversion, credit access, educational services, technical services, agricultural and farming industry. 1. introduction rural household farms when do business, industry is formed, known as farming (ali, 2019). many types of research, in the present time, highlight the numerous problems that malaysian farmers are facing. farming community in malaysia, specifically the rice farmer, is confronting serious issues due to the increase in the outmigration of youth of the country. the crisis is making the farming sector lose its productivity and face stagnant net revenue figures. it seems that the worsening condition of the farming sector maybe because the youth of the country are benefitting in terms of education, age, and productivity. the situation makes the risk for farmers high as the negative factors show their impact (ali, 2019). farmers are that part of society, which can uplift the whole nation if they are happy, and their financial condition is quite well. the problem of poverty gains even more strength when farmers’ wellbeing deteriorate, thus making it difficult for the state to reduce the surging level of poverty as the level of effectiveness of the government efforts reduce and cost increases (fahmi, samah, & abdullah, 2013). negative impacts can be observed on malaysian rice trade liberalization due to participation and inclusion of malaysian government in different trade agreements like asean free trade agreement (afta) and world trade organization (wto). when malaysia became a part of afta establishment, the government had to eliminate non-tariff barriers and do a reduction in import duties. the effects of such agreements are not limited to import and export but automatically the change is also reflected in local market situation. commodities produced at an exceptionally low price are offered to local market customers that increase the price competition in the market. consequently the local producers had to bear losses (fahmi et al., 2013). due to trade liberalization and globalization malaysia is expected to face increasing poverty rate in agrarian sector since it a developing nation. growth in the agriculture sector is determinant for the declining poverty and boosting economic development, especially when discussed in context of developing nations (lee, an, & kim, 2020). wik*, aragie kebede, bergland, and holden (2004) noted that in worse and unfavorable economic conditions and other environmental factors only those farmers survive in the industry that can determine the strategy to improve their farming skills and abilities. here a concept of risk aversion was introduced, which do not let farmers to choose strategies regarding the prevailing conditions. roumasset (1976) explained that a high degree of uncertainty is present relating to the process of production and the global economic environment. many researchers worked on risk aversion in farming, dillon and scandizzo (1978), moscardi and de janvry (1977) and binswanger and sillers (1983) found out that risk aversion is present in poor farmers of malaysia . ali (2019) concluded that about 86.22% of the farmers show behaviors that are risk aversive. the farmers are afraid of the uncertainties that can happen at any time. being risk aversive can help farmers to save costs. the mailto:s.saifan@ammanu.edu.jo mailto:r.shibli@ammanu.edu.jo mailto:shukri@msu.edu.my https://orcid.org/0000-0001-5688-4392 mailto:junainah@msu.edu.my https://orcid.org/0000-0003-3078-6123 mailto:drferdous@msu.edu.my https://orcid.org/0000-0002-0001-3595 agbioforum, 23(2), 2021 | 114 saifan, shibli, yajid, and azam. — a time series analysis to enhancing net revenue of farming in malaysia through agriculture extension … cost spent on seeds, fertilizers, water, and workforce can be cut down to increase profits and revenues. for example, more fertilizers and dts are used when the distance of the input market and fertilizer quantity are linked. similarly, if farmers would rely heavily on the credits issued to them by the bank. farmers need to maintain a balance between risk aversion and agricultural extension to craft a better future for farming in malaysia. the goal of the paper is not only to understand the variables risk aversion and agricultural extension but also to know their relationship with net revenue and how these variables affect net revenue generation in farming sector of malaysia. shaw (1996) states that income, similarly revenue, and risk aversion are positively correlated. but contrary to that when farmers are more risk aversive, they are fearful to make investments and thus they will get reduced amount of revenue. whenever the total number of resources or total available resources are not allocated to use, the productivity would reduce. de janvry, fafchamps, and sadoulet (1991) farmers are likely to become risk aversive when they do not have complete information. due to lack of information uncertainty increases and so do fear. uncertainty can only be reduced when awareness and education is made available to farmers easily. risk aversive workers are likely to look for better opportunities with less ambiguities for example contract specific jobs. while farming is like being a worker and an owner both facing uncertainties and risks with steadfastness and sheer intellect. to impart knowledge agriculture extension concept is often discussed. the process of improving the rate of production of food and making farmers understand the use of new farming techniques is known as agricultural extension (poverty, 2001). the goal of agricultural extension is to reduce the uncertainty regarding the information available to farmers. information asymmetry leads to making wrong decisions that will result in drop of net revenue figure (zwane, 2012). awareness regarding but the opportunities and utilization of better farming techniques can help reduce cost. since workers with better knowledge can innovate the sector (anaeto, asiabaka, nnadi, ajaero et al., 2012). in many countries of the world the challenge is to make the farmers participate in the process of extension, as usually due to lack of awareness farmers are not concerned with extension (david & samuel, 2014). the main objectives of the research paper are to know risk aversion helps in improving the net revenue in farming given full access to bank financing. the second objective is to know how agricultural extension helps in increasing net revenue in farming given access to bank financing. the third objective of the research is to know how risk aversion and agriculture extension helps in improving net revenue in farming sector of malaysia with complete access to bank financing. previous researchers reported that risk aversion have a slightly more negative impact when the workers are less educated. given in view the theories suggest that risk aversion decreases return on investment. similar to this research conducted on agricultural extension in south africa states that this phenomenon significantly influence deep productivity earnings and profits (lee et al., 2020). 2. literature review 2.1 risk aversion and expected utility theory the decision-making processes are especially important for the success of any field. even in the agricultural field, such processes are given very importance. however, while making decisions, the risks that could be faced are also pointed out. decision making processes help in achieving the desired goals or objectives (al wakil, 2018). here the risk aversion kicks in. according to many economists, the concavity of the utility functions captures the risk aversion. according to “expected utility theory,” the “risk averse individuals” are the ones who do not prefer to opt a “fair gamble” in which the net profit is observed to be zero. such individuals are more likely to show “concave growth” whereas, the individuals who are more likely to seek risks, show “convex growth” and the last neutral individuals show “linear growth” (bodnar, okhrin, vitlinskyy, & zabolotskyy, 2018). the uncertainty in payoff brings the attention of the decisionmakers towards the “expected utility hypothesis.” this theory helps the individuals in making effective decisions by determining rational options that should be considered in a complex case. both “risk appetite” as well as “preferences” are considered for this purpose. many farmers especially of the rural areas around the globe are “risk-averse” individuals as they already have a lot to put on stake in obtaining the expected utility. even though they obtain the required output they expected but they are not able to gain more than that due to their risk aversion behavior. according to the “expected utility theory”, the risk averter are the ones who “always prefer the expectation e(x) to the random variable x-are characterizable by concave utilities” (khaw, li, & woodford, 2021). according to many studies it has been observed that the farmers with higher incomes, are more likely to take risks as compared to the farmers with lower incomes. this encourages such farmers to make more investments to gain more effective outcomes. whereas the poorer farmers are less likely to take any risk and are mostly risk averters. in order to improve this condition, many scholars have depicted the importance of technologies (o'donoghue & somerville, 2018). they have promoted the implementation of modern technologies in the agricultural field to improve the risk management of the farmers for having more effective outcomes. for this purpose, the extension services are also found to play an important role as they help in improving the technical efficiencies of the farmers (thoma, 2019). many scholars have encouraged the educational programs for the rural farmers so that they can become more professionals in making their decisions as well as risk management that could help them to work more efficiently to increase the net revenue. this promotes the risk-taking ability of the farmers as well. many researches have showed that the wealth should be agbioforum, 23(2), 2021 | 115 saifan, shibli, yajid, and azam. — a time series analysis to enhancing net revenue of farming in malaysia through agriculture extension … promoted in the rural areas for the farmers before tempting them to take on “risky ventures” (stewart, canic, & mullett, 2019). this would help them in improving their views towards such “risky ventures.” for this purpose, the agricultural extension services should also be promoted as well as instilled in every rural area to boost the rural farmers to opt for “fair gambles” to obtain profitable revenues. 2.2 risk aversion and net revenue of farming risk is a common factor i.e., observed in the agricultural sector. as different internal as well external factors are considered to have an impact on the crop productivity. such factors might include environmental changes, climate changes, diseases, political issues, and many others. this leads to fluctuations in the prices as well as outputs for this sector. different “farming practices” are undertaken by different farmers for this purpose (adnan, ying, ayoub, sarker et al., 2020). however, the “agricultural risk management” is influenced by different dimensions such as the attitude of the farmers towards the risk, already implemented risk management instruments, different techniques of farming, risk aversion of the farmers and many others. however, it has been observed by many researchers that no proper financial aid is provided to the agricultural sectors especially in the developing countries (ali, 2019). this leads to prevention of promotion of modern technologies for this purpose. whereas, to minimize the risks, most of the farmers go for “crop diversification.” this helps in limiting the losses that could be observed because of the related risks. according to qasim (2012), the rural farmers opt “selfprotection” to meet their needs. for this purpose, the farming is the important source of income for the households of the rural farmers. some of the uncertain conditions such as climate change and others natural disasters might cause lowering of the income of such farmers (asravor, 2019). so, they take essential measures to decrease the no. of uncertainties observed to improve the farming revenue. the risk aversion behavior of the farmers plays a key role for this process. for this purpose, both “production and consumption” theories as well as “risk aversion theory,” are considered by different academia for improving the households of the rural farmers, especially in the developing countries. according to haim and moshe (2009), the “safety model” is taken into consideration to opt for modern technologies while considering the different issues related to poverty, insecurity of food and many other related problems. however, without any “formal insurance,” the decisionmaking methods of the farmers are more significant and how the risk management promoted by such farmers is also considered to be important for obtaining better outcomes. in order to understand such conditions, the farmers should be more able to understand proper technologies for improving the crop productivity and this could only be possible if less losses are observed from the related risks (k. k. haile, nillesen, & tirivayi, 2020). the “risk management” is thus considered to be very essential as well as implacable for the improvement of the households of the rural farmers, especially in the developing countries. one of the most important decisions made by the farmers to reduce the risks is to “allocate the land” for the selected crops. however, the “allocation of land” might also become a difficult decision for many farmers when they have to face any type of uncertainty (khor, ufer, nielsen, & zeller, 2018). before making any type of decision, proper data as well as the farmers should gain information to reduce the level of uncertainties to have a smooth “risk management” process that could lead to an effective outcome in terms of better net revenue. such discussion leads to the development of following hypothesis for this research study: h1: risk aversion has a substantial impact on the net revenue of farming 2.3 agricultural extension services and net revenue of farming for a better “agricultural development,” different “support services” are important for the farmers of the rural areas, especially in the developing countries. such services include: training in education, providing human capital, developing important infrastructures and the implementing agricultural extension services (mohan, 2020). the “agricultural extension services” help in providing the required knowledge as well as awareness to the farmers of small level to improve their technologies for increasing the “agricultural productivity” more effectively. such services also provide better information for the farmers to make better decisions by keeping in mind all the type of risks, they must face. this helps in improving the overall crop productivity (molla, beuving, & ruben, 2020). the choices of technologies by the farmers are also improved by applying such services as they help in improving the overall procedure of decisionmaking methods leading to a progressive household of such rural farmers due to an increase in the net revenue. however, many studies have shown that the educated farmers are more likely to earn more profit as compared to the uneducated farmers. because the educated farmers are provided with the required knowledge as well as awareness about a specific situation more deeply and they can make their decisions accordingly which help them to obtain the required revenue for a better living. different extension services are provided by ngos as well as many private sectors especially in the developing countries’ agricultural sectors to improve the overall “food security” as well as “crop productivity” (sulewski, wąs, kobus, pogodzińska et al., 2020). the improved technical efficiencies of the farmers lead to an increase in net profit of the “agricultural production.” even though some uncertainties are still observed but such services help the farmers in lowering the rate of uncertainty to experience less no. of losses as compared to before. this helps in increasing the profits of the crop production by making proper “risk management” decisions. the extension services provide better facilitation for choosing the technologies by the farmers in order to obtain better incomes as well as to have a better knowledge as well as awareness about the expected risks agbioforum, 23(2), 2021 | 116 saifan, shibli, yajid, and azam. — a time series analysis to enhancing net revenue of farming in malaysia through agriculture extension … so, that initial measures could be taken in order to prevent any long-term issues related to different no. of risks (yanuarti, aji, & rondhi, 2019). many developing countries have promoted the trainings as well as educational programs for their rural farmers to make them aware of the current circumstances and to determine their own values to improve the agriculture system for the sustainable development as well as also for the economic growth of the country. new technologies are also being introduced in such rural areas of the developing countries so that proper steps could be taken initially before any hazardous incident might take place (yu, chen, niu, gao et al., 2021). the farmers are the essence of the agricultural system of any country. different policies are also being developed by different governments of the countries to promote the role of farmers in sustainable development. this discussion leads to the formulation of following hypothesis for this research study: h2: the agricultural extension services has a significant impact on the net profit revenue of farming 2.4 model figure 1: research model 3. method and data the present research is aimed at empirically investigating the impact of risk aversion and agricultural extension services to on the net revenue from farming. the analysis was performed on time series data using the novel ardl model. the impact of risk aversion and extension services has been studied and focused upon in the extant literature but has not been associated with the net revenue of the farms. thus, the primary objective of the present study is to evaluate the trend and impact of the risk aversion and agricultural extension on the net farm revenue in the context of malaysia. malaysian agricultural industry is developing, and the scope of development can sometimes be limited due to the constraints like risk aversion and lack of access to education and extension services. the data was collected from malaysia, as the study is focused on the malaysian agricultural industry. the data was collected from various agricultural associations, banks, and official database of world bank. the dependent variable in the present study was net farm revenue, which was measured through the aggregate farm production. this information was accessed through the district registers of yearly agricultural production. whereas the access to extension services was evaluated through the formal and farm related education of farm households. the risk aversion was measured through the propensity of the farmers to take risks and incorporate new products and the degree to which they adopted technological resources for their production. this information was accessed through the local farming registers of different malaysian rural districts. the dynamic ardl model was used for the estimation of the variable dependencies. the method was used for the evaluation of the real-time change taking place in the dependent variable due to the regressors (jordan & philips, 2018). unit root tests were used for the evaluation of the order of integration and stationarity of the research variables. all factors were integrated at i (0) and i (1), which established the suitability of the simulated model. the adf (augmented dickey-fuller) and kpss (kwiatkowski phillipsschmidt-shin, phillips-person) (dickey & fuller, 1979; phillips & perron, 1988) were also used for evaluation of the stationarity properties of the model before using the ardl dynamic simulations model. the following equation was used for evaluating the relationships among the variables: 𝑁𝑅𝑀𝑡 = 𝛽0 + 𝛽1𝑅𝐴𝑡 + 𝛽2𝐴𝐸𝑆𝑡 + 𝛽3𝐴𝐶𝑡 + 𝜀𝑡 in the above equation, the factor 𝜀𝑡 represents the error term, the constant is depicted by β0 and the terms β1 to β3 in the equation represent the coefficients for the independent variables. 3.2. unit root test the unit root test evaluates the stochastic properties of data and integration order of the variables can also be found out by using these tests. as author has applied the kpss, pp and adf unit root test for evaluating the stochastic properties of the data. the equation for this test can be written as follows: 𝛥𝑦𝑖,𝑡 = 𝑎𝑖 + 𝜌𝑦𝑖,𝑡 − 1 +∑𝑎𝐽𝛥𝑦𝑖,𝑡−𝐽 𝑝𝑖 𝐽=1 + 𝜀𝑖,𝑡 here 𝛥𝑦𝑖,𝑡 is the difference that 𝛥𝑦𝑖,𝑡shows for ith country for the specific period of t 3.3. ardl bounds test the ardl bounds test was applied to evaluate the cointegration among the variables to study their long-run relationships. the following model was applied. 𝛥𝑁𝑅𝑀𝑡 = 𝜑0 + 𝜑1𝑁𝑅𝑀𝑡−1 + 𝜑2𝑅𝐴𝑡−1 + 𝜑2𝐴𝐸𝑆𝑡−1 + 𝜑3𝐴𝐶𝑡−1 +∑ 𝛽1𝑁𝑅𝑀𝑡−1 𝑞 𝑖=1 + ∑ 𝛽2𝑅𝐴𝑡−1 𝑞 𝑖=1 + ∑ 𝛽3𝐴𝐸𝑆𝑡−1 𝑞 𝑖=1 +∑ 𝛽4𝐴𝐶𝑡−1 𝑞 𝑖=1 +𝜀𝑡 in the expression defined above, the δ signifies the first difference and the t-1 is representation of the lag selection which is selected based on the akaike information criterion. the terms “φ” and “β” are used for the evaluation of the long-run relationships of the variables. the null hypothesis of the ardl bounds test posits absence of cointegration and the alternate hypothesis posits the presence of long-run relationship among the variables. the f statistics are used for rejecting or accepting the null hypothesis. the long-run relationships are present among the variables of the study when the values of the f-statistics are higher than the value of the risk aversion agricultural extension services net revenue of farming agbioforum, 23(2), 2021 | 117 saifan, shibli, yajid, and azam. — a time series analysis to enhancing net revenue of farming in malaysia through agriculture extension … upper bounds and absent when these are lower than the upper bound values (pesaran, shin, & smith, 2001). however, the decision is irresolute when the value lies between the upper and lower bound values. 3.3 ardl model the ardl model has specific advantages as compared to the other time series models (pesaran et al., 2001). the classical ardl method can also be used for a considerable small sample or period. the ardl model is applicable when the variables are stationary and integrated at either i (0) or i (1). different lags were applied for the independent and dependent variables during the statistical analysis. in accordance with the results presented in the next section, evidence of cointegration and thus long-run was found among the variables. thus, the following ardl model was used for estimation of the parameters. 𝛥𝑁𝑅𝑀𝑡 = 𝛼0 +∑𝜎1𝑁𝑅𝑀𝑡−𝑖 𝑝 𝑖=1 +∑𝜎2𝑅𝐴𝑡−𝑖 𝑞 𝑖=1 +∑𝜎3𝐴𝐸𝑆𝑡−𝑖 𝑞 𝑖=1 +∑𝜎4𝐴𝐶𝑡−𝑖 𝑞 𝑖=1 + 𝜀𝑡 in the above equation, the long run variations of the variables are depicted by σ. the akaike information criterions were applied for the selection of the optimal lag for the study. the following error correction model was used to choose the optimal lag for the individual variables of the study. the following error correction model was used for studying the short-run dynamics of the model. 𝛥𝑁𝑅𝑀𝑡 = 𝛼0 +∑𝛽1𝛥𝑁𝑅𝑀𝑡−𝑖 𝑝 𝑖=1 +∑𝛽2𝛥𝑅𝐴𝑡−𝑖 𝑞 𝑖=1 +∑𝛽3𝛥𝐴𝐸𝑆𝑡−𝑖 𝑞 𝑖=1 +∑𝛽4𝛥𝐴𝐶𝑡−𝑖 𝑞 𝑖=1 + 𝜑𝐸𝐶𝑇𝑡−𝐼 + 𝜀𝑡 the short-run changes are indicated by β in the equation. the ect is indicative of the short-run variation in the model which provides an overall estimate for the volatility existent in the model. the range for the ect is 1 to 0. the variation and volatility can be adjusted at the equilibrium when the error correction term becomes negative and significant. the stability of the model was evaluated through the application of the cusum and cusumsq. 3.4. dynamic ardl model in accordance with khan, teng, and khan (2019) and sarkodie, strezov, weldekidan, asamoah et al. (2019) the dynamic simulated approach for the ardl is capable of simulating, estimating and plotting the forecast of the alterations in the regressors while evaluating change in one and holding others constant. the following equation represents the dynamic ardl model. 𝛥𝑁𝑅𝑀𝑡 = 𝛼0 + 𝜃0𝑁𝑅𝑀𝑡−1 + 𝛽1𝑅𝐴𝑡 + 𝜃1𝑅𝐴𝑡−1 + 𝛽2𝐴𝐸𝑆𝑡 + 𝜃2𝐴𝐸𝑆𝑡−1 + 𝛽3𝐴𝐶𝑡 + 𝜃3𝐴𝐶𝑡−1 + 𝛾𝐼𝐸𝐶𝑇𝑡−𝐼 + 𝜀𝑡 4. results 4.1. descriptive analysis descriptive statistics are used for the presentation of the quantitative descriptions in a manageable form and help a researcher to simplify large amounts of data (fisher & marshall, 2009; george & mallery, 2016). table 4.1 below is presenting the summary of the research variables in the form of descriptive analysis. the value variation in mean and median is low according to the results. moreover, the standard deviation is also low, so it indicates that there are no large variations in the data. furthermore, the values of skewness and kurtosis within the defined threshold of -1+1 and -3+3, respectively. jarque-bera estimates are also normal, as indicated by the p-values. ra aes nrm ac mean 2.534250 3.766964 4.483944 3.758423 median 2.005000 3.724237 4.511298 3.696639 maximum 1 5.587992 6.490016 5.873582 minimum 0 2.546075 2.621766 1.235471 std. dev. 1.975603 0.728931 0.934020 1.025521 skewness 0.629945 0.356873 -0.128578 -0.141163 kurtosis 2.772598 2.825837 2.324853 2.549941 jarque-bera 30.52363 0.896446 0.869922 0.470434 probability 0.230078 0.649182 0.647290 0.790399 sum 101.3700 150.6885 179.7574 150.3369 4.2. unit root test three different unit root tests were used in this study and table 2 presents the results of these tests, i.e., augmented dickey-fuller (adf), kwiatkowski-philips-schmidtshin (kpss), and phillip-perron (pp). the test results of the unit root tests inform whether the variance and mean are constant over time and if any trending behavior is present. in the case of all three-unit root tests, the variables are found to be stationary by applying the first difference. this shows that these variables are all integrated at the order one. table 2: unit root tests variable adf pp kpss level 1st difference level 1st difference level 1st difference nrm -4.2993** -7.1281** -4.5340** -7.1203** 8.1129** -1.7009** aes -6.2597** -9.9234** -6.3411** -16.6035** 33.1385** 0.1343** ra -3.5103* -7.6140** -3.4801* -25.1008* 30.4290** 0.2878** ac -2.5444 -7.6583** -2.3480 -11.9176** 23.1788** 0.3404* 4.3. lag selection after performing the preliminary tests, the researcher needs to make an appropriate model selection. in the present study, the var lag selection technique is used for selecting an appropriate model and lag value. several lag tests are performed including the log l, lr, fpe, hq, agbioforum, 23(2), 2021 | 118 saifan, shibli, yajid, and azam. — a time series analysis to enhancing net revenue of farming in malaysia through agriculture extension … sc, and aic lag tests. in the current study, the researcher performed the analysis using annual data, hence the lag test process was begun with three lags, reducing it later on to one and zero (altintas & taban, 2011). table 3 below presents the results of the lag tests. according to the results of the lag length selection criterion, the values are lowest for lag one, hence, lag one will be selected for application in the model. table 3: lag order selection criteria lag logl lr fpe aic sc hq 0 -252.0821 na 0.746029 13.89633 14.11402 13.97308 1 -195.3652 95.03917* 0.136280* 12.18190* 13.48805* 12.64238* 2 -179.6920 22.02718 0.243952 12.68605 15.08066 13.53026 3 -165.6707 15.91609 0.545874 13.27949 16.76256 14.50744 4.5. bounds test for cointegration evaluation bounds test is used to evaluate the cointegration of the variables in this study. the research variables can only be stated to cointegrate if they have similar stochastic trends, leading them to cancel out the effects of each other (hendry & juselius, 2000). hence, cointegration analysis is important for avoiding false results in the regression model steps (hendry & clements, 2003; hendry & juselius, 2001). the null hypothesis for the test is of no cointegration and it can be rejected as per the results of this study. the table values indicate that the f-statistic is greater than the critical higher and lower bound values as the value of f-statistic is 3.908447 and upper and lower bounds are 2.2-3.09. this shows that there is a stable long-term association between the risk aversion (ra), agricultural extension services (aes), and net revenue of farming dependent (nrm). table 4: bounds test f-bounds test null hypothesis: no levels relationship test statistic value signif. i (0) i (1) f-statistic 3.908447 10% 2.2 3.09 k 4 5% 2.56 3.49 2.5% 2.88 3.87 1% 3.29 4.37 4.6. long run and short run relationships table 6 is indicative of the novel ardl results. the novel ardl model can estimate, stimulate, and plot the different graphs of the positive and negative changes incurring in the variables along with their long-run and short-run relationships. the results in table 5 present the indications for the acceptance and rejection of the hypotheses formulated in this study. the relations between the risk aversion (ra), agricultural extension services (aes), and net revenue of farming dependent (nrm) can be explored based on this table. table 5 is indicative of the novel ardl results. the novel ardl model can estimate, stimulate and plot the different graphs of the positive and negative changes incurring in the variables along with their long-run and short-run relationships. the results in table 5 present the indications for the acceptance and rejection of the hypotheses formulated in this study. the relations between the risk aversion (ra), agricultural extension services (aes), and net revenue of farming (nrm) can be explored based on this table. it can be seen that agricultural extension services has a significant and direct impact on the net revenue of farming. the relationship is positive, thus showing that if the agricultural extension services increase the net revenue of farming will also increase. similarly, a decrease in the agricultural extension services will reduce the net revenue of farming for malaysia’s farming and agriculture sector. thus, the hypothesis is accepted. the second relationship being tested is between the risk aversion behavior and the net revenue of farming malaysia’s farming and for agriculture sector. a high-risk aversion implies an increased financial strength and development of a sector. the values in the table indicate that there is presence of a negative relationship between these two factors. however, the results are insignificant and thus, the hypothesis will be rejected. there is a significant and positive relationship prevalent between the access to credit and net revenue of farming. a unit increase in the access to credit will increase the net revenue of farming by 18 percent, however, the lagged version of the factor demonstrates presence of a negative relationship. the error correction term is negative with a coefficient of 0.286321 and is significant. this indicates that a short-run equilibrium is present in the model. the r-square for the model is 0.818669. this value shows that the independent variables contribute over 82.8 percent of the variation in the dependent variable. the adjusted r squared value is also 76.86 percent. these high values of r-squared and adjusted r-squared lead to indicating that the model is a good fit. table 5: ardl results dependent variable: nrm method: ardl selected model: ardl (2, 0, 0, 2, 0) variable coefficient std. error t-statistic nrm (-1) 0.489681 0.185858 2.634701 nrm-2) 0.247076 0.147706 1.672761 aes 0.460422 0.183865 3.425607 ra -0.056075 0.192780 -0.290875 ca 0.188290 0.161503 2.165861 aes (-1) 0.013033 0.217691 0.059867 ra (-1) -0.279866 0.149618 -2.870544 c 1.489566 0.955198 1.559431 ect (-1) -0.286321 0.386282 2.379766 r-squared 0.828669 adjusted r-squared 0.768646 f-statistic 16.36603 prob(f-statistic) 0.000000 simulations 5000 4.7. diagnostics several different diagnostics and robustness tests were applied on the model to confirm the robustness and precision of the estimates. researcher has used five diverse types of diagnostic statistics to evaluate for issues like correlation, heteroscedasticity, model specification, normality, etc. the results of the robustness tests have been presented in the table below. breusch godfrey lm, agbioforum, 23(2), 2021 | 119 saifan, shibli, yajid, and azam. — a time series analysis to enhancing net revenue of farming in malaysia through agriculture extension … breusch-pagan-godfrey, arch test, ramsey reset test and jarque-bera test have been reported in the table 6. all five tests have shown that the model is robust and there is no issue of any kind in the data or the model. table 6: diagnostic tests diagnostic statistics tests p values decision breusch godfrey lm 0.453 no issue breusch-pagan-godfrey 0.562 no issue arch test 0.273 no issue ramsey reset test 0.648 model is correct jarque-bera test 0.482 model is normal the above table showed reports of tests for robustness of the model whereas the stability has also been evaluated and depicted in the graphs below by use of the cumulative sum of the recursive residuals (cusum) and cumulative sum of the recursive residuals squared (cusumsq). the results indicate normality and stability of the overall model -16 -12 -8 -4 0 4 8 12 16 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 cusum 5% significance -0.4 -0.2 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 cusum of squares 5% significance 5. discussion and conclusion 5.1 discussion the significance of sustainable development has improved the agricultural sectors in different countries around the world. different research studies have been conducted in the past to determine the impact of different variables on the net income of farming as the economic growth is also important along with the sustainable development. for this research study, a time-series sample was obtained in context of malaysia to determine the impact of different variables including “risk aversion” as well as “agricultural extension services” on the net revenue of farming. the current study helped in devising two important results that could be beneficial for the future studies. first, the findings obtained from this research study showed that the risk aversion has an insignificant relationship with the net revenue of farming. however, in the present study, it has shown a positive impact on the net revenue of farming. the risk aversion behavior of the farmers is found to have an important impact on the risktaking behaviors of the farmers. according to previous studies, the farmers of the rural areas are less likely to take risks as they try to play safe without putting their investments at stake. however, according to aryal, jat, sapkota, khatri-chhetri et al. (2018), if proper wealth is provided to such rural farmers, their behavior changes towards such situations and they opt for more risks resulting in a “convex economic growth”. however, the access to credit is considered to be an essential variable in this regard (dagunga, sedem ehiakpor, kwabena parry, & danso-abbeam, 2018). it helps in promoting the risk management system in the rural areas of the developing countries. the decision-making processes of the farmers are considered to play a vital role in this regard. it provides awareness as well as knowledge to the farmers in making right decisions for having effective and increase net revenue of farming (balana, bizimana, richardson, lefore et al., 2020). for this purpose, even many organizations as well as banks are providing the needed investments and credits to the farmers. however, the risk aversion is not found to have an overall positive impact on the net revenue of farming if no proper investment is made. second, the results obtained from the current study showed a significant relationship between the agricultural extension services and the net revenue of farming. many past studies conducted showed the positive relationship also. according to mohan (2020), the “agricultural extension services” help in providing the required knowledge as well as awareness to the farmers of small level to improve their technologies to increase the net revenue of farming. however, the improved technical efficiencies of the farmers also help in improving the net revenue of the farming. for this purpose, different public as well as private sectors play an important role by holding different educational as well as training sessions (m. g. haile, wossen, & kalkuhl, 2019). proper system should be maintained to obtain the desired goals. this helps in improving the overall production by the rural farmers leading to better incomes of the farmers. the farmers are the essence of the agricultural system of any country. different policies are also being developed by different governments of the countries to promote the role of farmers in sustainable development. this promotes the risk taking behavior of the farmers for improved net revenue of farming (ndem & osondu, 2018). 5.2 conclusion the risk-taking behavior of the rural farmers is highly impacted by numerous factors. some of these are internal and some are external. most of the rural farmers are responsible for feeding their families especially in the developing countries so they do not risk their investments in trying to get more revenue. this leads to the risk aversion behavior of the rural farmers leading to the agbioforum, 23(2), 2021 | 120 saifan, shibli, yajid, and azam. — a time series analysis to enhancing net revenue of farming in malaysia through agriculture extension … “concave economic growth” as no more revenue is obtained then the expected revenue (rahman, jianchao, adnan, islam et al., 2020). many past studies have been conducted to determine the impact of different variables on the net revenue of farming. however, the focus of this research study was to determine the impact of “risk aversion” as well as “agricultural extension services” on the net revenue of farming was determined. the results obtained from this research study showed that the risk aversion behavior of the farmers has no significant relationship with the net revenue of farming. however, for this research study, the risk aversion of the rural farmers was found to have a positive effect on the net revenue of farming. the reason for this is that the rural farmers must make decisions by keeping themselves safe from the losses due to the expected risks. this improved the overall decision-making processes of the rural farmers as well as their decisions regarding the needed revenue. however, the credit or the capital investment provided to the farmers play an incredibly significant role in improving the risk-taking behavior of the farmers for a better revenue. the agricultural extension services are also considered to be effective in this case as they help in providing the needed information as well as awareness to the rural farmers for making better decisions and for better risk management. 5.3 limitations and research indications limited research studies were conducted in the past to understand the need of increasing net revenue of farming. this research study will help in providing the basic understanding of sustainable development and the importance of improved net revenue of farming especially for the betterment of the rural farmers. the time-series data is obtained for the current research study. however, this leads to the encouragement of using crosssectional data in the future studies to fill the gap. this will help in improving the agricultural conditions as well as implications of the rural farmers in the developing countries as they will be enlightened from the reformations made by the developed countries to improve their agricultural sectors. limited number of variables were considered for this research study. however, other important variables such as politic influence, climate changes etc. should also be considered for the future studies to have a detailed knowledge about the factors required for improving the net revenue of farming and the significant changes could also be made by the rural farmers in this case. 5.4 implications this research study helped in improving the extension services provided to the rural farmers for improving their technical efficiencies. this is considered to play an especially key role in this regard. different educational programs were introduced for improving the knowledge of the farmers regarding the updated measurements taken for improving the crop productivity. this also helped in improving the decision-making processes of the rural farmers regarding the important cases. different organizations as well as banks in malaysia have introduced different loans for the rural farmers. the promotion of wealth has showed a positive impact on the risk-taking behavior of the rural farmers. the government in malaysia has developed new policies for encouraging the capital investments for the rural farmers as this will help in improving the overall economic growth of the country. however, the “self-protection” of rural farmers also helped them in preventing from any type of uncertainty leading to positive outcomes. different communication measures were also introduced for encouraging the farmers to adopt the risk-taking behavior and to go for the “fair gamble” to obtain the desired results in the form of an increase in the net revenue of farming. references adnan, k., ying, l., ayoub, z., sarker, s. a., menhas, r., chen, f., & yu, m. m. 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medan, sumatera utara, indonesia email: ikbar.p@gmail.com maintaining the quality of environmental is a global requirement and necessary to achieve high economic growth, especially through the use of bioenergy. this eco-significant requirement has gained the focus of recent studies and regulators. following suit, the present study examines the impact of bioenergy production, biomass production, energy import, energy export, and economic development on the carbon emission of the asean countries. this study extracts secondary data from published material such as world development indicators (wdi) from 2004 to 2019. this study has run the generalized method of moments along with the random effect model to test the relationships between the constructs. the study reveals that bioenergy production, biomass production, energy import, energy export, and economic development have a negative association with carbon emission or positive association with environmental quality of the asean countries. this study can support future research studies on the subject help regulators formulate and implement policies related to bioenergy production, biomass production, and carbon emission. keywords: bioenergy production, biomass production, energy import, energy export, economic development, carbon emission, environmental quality 1. introduction environmental quality is a characteristic associated with numerous properties and elements. a number of energy factors contribute to the assessment of the quality of the environment. these factors are part of the local and international environment which is sustained by organisms and human beings. measurement environmental quality depends on the uses of energy which are the main contributors to degradation and retaining of the atmosphere. there are sustainable potential resources prevalent in asean countries for liquid biofuels. various estimations are also converted and collected by emphasizing the feedstock which could be converted to biofuels. the focus is on the growth of feedstock that is environmentally and socially sustainable for bioenergy production. without any conflict persisting between the causing usage of land and food supplies, the release of carbon could contribute towards global warming. numerous approaches about biomass feedstock include various items. these items are consistently helping in the development of biomass feedstock from the products generated in forests and farms. proper implementation of strategies for the plantation and grasses could be beneficial for the biomass but potentially harmful when burnt. growing food could be a positive approach for human welfare and for establishing a positive environment (ali et al., 2019; ridzuan et al., 2017). environment quality exerts a strong impact on different aspects of life. asean, like other countries and international environment protection agencies in the world, is particular careful about environmental aspects. asean almost annually reports on environmental issues in way of updating the environmental declaration (soer). in 1997, the first soer of asean released, covering the then-seven asean member states (ams). a second asean soer covering all the latest ten ams has been released three years back. in 2006, the third soer was released. the 5th asean soer (2017) (soer5) was published in 2010, following the 4th soer (2009). atmospheric research in asaan indicates that regional air pollution is on the rise, with the oil industry accounting for the highest level of emissions of carbon dioxide with energy associated levels of carbon dioxide emissions projected to rise by 61% in 2014 to 2025 in the asean region. the cities are key greenhouse gas sources on account of urban lifestyle and its impact on the environment, and asean cities need to seek low carbon economy, services, and transport as a matter of urgency. improved monitoring and higher standards of air quality are also important in all ams so that trends in air quality can be properly tracked and adhered to. asean countries are also linked to the rise of tourism fires leading to the proliferation of major commercial plantations of up to 90% of trans boundary smoke haze. although solutions to haze emissions are in place, it is important to implement more holistic steps to resolve this problem at the source through proper land use and management as well as restrictions on commercial plant growth. moreover, it bears to note that according to the environmental performance index, the asean nations secure different scores. for instance, laos rank is 130 with a score of 34.8 while the rank scored by malaysia is 68 with a score of 47.9. in the same way, thailand's rank is 78 with a score of 45.4. philippine rank is 111 with a score of 38.4. similarly, indonesia ranks at 116 with a score of 37.8 and vietnam ranks at 139 with a mailto:mhd.buhari@umsu.ac.id mailto:rahmahsibuea67@gmail.com mailto:ikbar.p@gmail.com agbioforum, 23(1), 2021 | 13 muhammad buhari sibuea, siti rahmah sibuea and ikbar pratama. — the impact of renewable energy and economic development… score of 33.4. another asean member cambodia’s rank is 139 with a score of 33.6 and the myanmar rank’s is 179 with a score is 25.1. the pollution index of asean nations is shown in figure 1. figure 1: pollution index of asean nations the import of energy determines the proportion of energy consumption which is imported or produced domestically. therefore, the emergence of energy imports benefits asean countries and also depicts their effects on the environment. some tolerable energy elements could also have positive ramifications for the development of the environment, ultimately uplifting living conditions and quality of life. this depends on the inland energy consumption which requires countries to initiate the process of importing energy from other countries. exporting energy to other countries is an important means of uplifting the local economy (gong, 2019; tancho, jermsittiparsert, & chienwattanasook, 2021). this uplifting not only fosters healthier economic conditions but also plays an important role in the maintenance of environmental quality. various types of energy are imported which include electricity, solar, coal, and generator. energy import is eminent for implementing sustainable measures to retain environmental quality and encourage prominent modes for the enhancement of production of energy. the economic growth of any country is essential to ensure provision of human benefits and retain environmental quality for all regions. since the past few decades, the economic growth of the world has been highlighted around the globe due to the significant changes observed in the natural environment. this increased level sustainability of the environment is also an upshot of the positive economic development where humans are increasingly undertaking significant efforts to ensure environmental sustainability (haseeb, kot, hussain, & jermsittiparsert, 2019; zandi, haseeb, & abidin, 2019). as environmental quality is prevalent in many properties and elements. many of these contributors to the efficiency of the atmosphere are complex energy sources. within the local and foreign ecosystems assisted by species and human beings, certain features prevail. contamination or degradation of environmental quality ultimately depends on the energy components that contribute to atmospheric depletion and retention. 2. literature review to assess the impact of gas emissions caused by biofuels, while replacing fossil fuels, it is important to understand the whole process of bioenergy production. renewable energy is coming from the working on fossil fuels, which asserts its impact on the asean environment. the process works differently while focusing on the quality of the environment; therefore, a system of biofuel is an important one in terms of influence on environment quality. some isolations have been depicted in the production and removal of biofuels which are naturally strained all over the world (ibrahim, al-thukair, shaikh, farooq, & ahmad, 2020). by using gases, the bioenergy production can be significantly enhanced but this poses an adverse influence on the quality of the environment. there are balances of greenhouse gasses which when fluctuated, can significantly impact the environment. this impact ultimately depends upon the types of crops and energy elements that are used to produce biofuels in asean countries, even though, fossil fuels are relatively less influential than biofuels contributing to gas emissions. various tools are specifically controversial while emphasizing the impact of biofuels on the quality of the environment. among the optimization and modeling of artificial networks for bioenergy production, the resources of the environment and fossil fuels are considered (sewsynker-sukai, faloye, & kana, 2017). therefore, sustainable energy is friendly in relation to the environment as well as on account of the availability of bioenergy sources. various factors contribute to gas emissions of greenhouse which, correspondingly depicts the amount of fossil fuel energy dominant in the production of asean biofuels. these emissions are considerably prevalent during the production of biofuel which adversely influences the environment in multiple ways. while transporting, feedstock production, and manufacture of pesticide and fertilizer, and for the production of biofuel itself, fossil fuels play a vital role. certain functional approaches are used to generate the sources of bioenergy production which could be feasible for the economy and industry (tiwari, nain, labrou, & shukla, 2018). this 62.58 75.39 67.08 74.06 85.92 78.76 78.21 89.77 0 20 40 60 80 100 malaysia thailand indonesia philippines vietnam laos cambodia myanmar pollution index agbioforum, 23(1), 2021 | 14 muhammad buhari sibuea, siti rahmah sibuea and ikbar pratama. — the impact of renewable energy and economic development… generation of bioenergy production is considered an option for alternative and sustainable energy. while mitigating the effects of climate change, various factors are taken into consideration in asean countries. the factors are significantly prevalent in the portion of energy and renewable energy elements. such renewable energy factors positively contribute to the quality of the environment. the emissions of gasses also have a significant impact on the environment. in the evaluation of environmental quality, the production of biofuel is marked as an important one with a significant impact in changing climates. in evaluating the link between the demand for energy, agriculture, environmental degradation, and finance, the quality of the environment is seen to play an important role (hafeez et al., 2020). this is a clear indication of the paradigm trend towards the development of energy sources while considering their impact on the quality of the environment. environmentally unfriendly use of energy resources in asean countries is attributable to a number of factors. the energy-related to biomass is usually generated from alternative sources which include natural gases, petroleum, and coal. while burning fossil fuels, certain gasses are extracted from the environment in consideration of biomass as in carbon dioxide and greenhouse gases. the production of biomass is significantly related to stem roundness and canopy structure in the popularity of plantation (tun, guo, fang, & tian, 2018). this is a possible means for the improvement of wood quality and productivity by substantiating the dominant impact of use of energy resources on the environment quality. while enumerating the positive approach toward the production of biomass, the plant is considered an eminent source of energy. it also produces a huge amount of carbon dioxide when plants are burnt in asean countries due to forestry areas. using different types of burning woods is also a dominant source of energy. forests are the main areas which are used for the production of biomass. biomass production is organic fertilization which takes place in the cultivation from tropical soil (diallo, masse, diarra, & feder, 2020). this enhances the known versions or models of biomass production which are influential vis-a-vis the quality of the environment. particularly, the impacts on the environment are generated from biomass burning which is used to form electricity. various power plants are used as biofuels and biomass which is taken from forests in asean countries. biomass is generated from the various fossil fuels and coals which generate huge gasses to the environment and can potentially result in climate change. the sequence of carbon and biomass production stands in sync with the forestry principles which are essential for the quality of the environment (hytönen, aro, & jylhä, 2018). deforestation could significantly decrease biomass production which, in turn, could be beneficial for the environment. usually, policies developed for the environment establish the feasibility of gasses in terms of the protection of environment and human health in asean countries. this is done by reducing the amount of fossil fuel burning which is the main source of biomass. various traps are prevalent in the environment which may be disrupted by the numerous gases during the process of burning or releasing carbon dioxide. therefore, the combustion of biomass significantly impacts the quality of air and poses various health risks. among the asean countries, malaysian environmental quality is significantly linked with the change in energy prices (maji, habibullah, saari, & abdul-rahim, 2017). this link the higher prices of oil rendering emission of carbon and improvement with the quality of the environment. energy import is a major factor affecting environment quality. usually, multiple energy items are imported to the asean countries which can potentially impact the environment. these items include various components of energy like fossil fuels, gasses, and crude oil which impact the climate. therefore, environmental quality is a major concern in the import of energy. the trade aspects of china are more pronounced due to the decompositions of structural reforms and significant extractions of methods for energy import (deng, ma, zhang, & liu, 2018). while exploring the norms of energy import, the quality of the environment is embodied with the import of energy which is based on various items. many countries are indulged in the import of energy due to a lack of domestic production. it not only costs the countries but also impacts the quality of the environment. asean countries are major producers of energy resources but are also, at the same, involved in the import synergies. usually, the import of energy is depicted in many developing countries and the countries with weak economies. the substitution of import technology is referred to the energy where the equipment is traded in the russian energy sector (kryukov, 2017). various cycles are introduced in the energy industry that depict the application and implementation of technological developments. due to lesser production of energy domestically, developing countries are forced to buy energy from developed countries. asean countries are indulged in the import of electrical energy as well as in imports of crude oil. the market of energy import is largely operated in the global world but also poses a significant influence on the quality of the environment. wide interactions have been elaborated between the imports and consumption of energy in turkey (katircioglu, katircioğlu, & altinay, 2017). over the years, significant impacts of energy import are seen on the quality of the environment with local and renewable energy resources. environment quality is directly linked with the energy imports due to having plenty of health issues. although, importing energy is considered necessary to meet the country’s energy demands some asean countries are able to in produce enough energy domestically. malaysia and singapore are among the largest producers of energy as compared to other asean countries. therefore, the trend to import energy has significantly increased in some years with a correspondingly increasing impact on the quality of the environment. since energy efficiency is significant in improving the total factor productivity, thus agbioforum, 23(1), 2021 | 15 muhammad buhari sibuea, siti rahmah sibuea and ikbar pratama. — the impact of renewable energy and economic development… improvement in the efficiency of energy, the controlled demands of the hong kong system of temperature provided acceptance of environmental quality (mui, wong, cheung, & yu, 2017). this is dependent on the policy development for energy import that incorporated the role of energy consumption with the environment. exporting energy is also considerably increased in many countries because of its contribution to the economy. although, energy has several consequences for the environment, it also brings several benefits. this wide interpretation highlights positive contexts of energy export to support economy as well as to maintain the climate. the patterns of energy export are analyzed with the independence of the commonwealth in china with the relevance of environmental quality (rasoulinezhad, 2019). this applies to the gravity of energy export in most of the asean countries which are persistent in maintaining the environmental quality. the quality of the environment has increased in developing countries due to a large number of exports. these exports are linked with economic benefits and the quality of the environment. international policies are developed in the asean countries to undertake various measures which are beneficial for the enhancement of energy exports. certain strategies and views have also been depicted in the energy export that significantly influence environment quality. it is upon the acceptance of the public which is aware of the energy wind that is used to enhance export in ireland with the means of effectiveness and flexibility (brennan, van rensburg, & morris, 2017). local communities play an important role in terms of the impact of energy export on the environment. china is considered the largest exporter of energy due to its vast facilities and broader ways. this immense export of energy has been depicted in many developed countries because of their largest production. the involvement of asean countries in energy export has also been considerably increased by prioritizing impact on environmental quality. over the past few decades, energy export has peaked due to its wide usage and demand in many countries. the revolution of energy export is examined among africa and china with the development of energy capacity (shen & power, 2017). transferring the energy into other countries is also causing a significant influence on the quality of the environment. among the largest exporters of energy, asean countries significantly dominate in this area due to their wide resources. this states the outputs which have been increased due to significant inputs whether attained domestically or internationally. it intensifies its impact on the environment quality with a variation due to consumption and exports. although elements of import also prevail, the consumption variance could significantly counter the quality of the environment. the saving of energy is a better endorsement for indoor environment having no effects on human health (raw, littleford, & clery, 2017). several comfort zones have been established in asean countries that are maintaining and sustaining environment quality. quality of environment has a direct impact on human development. income generation of individuals or households can also be potentially influenced by the quality of the environment. asean countries have attained significant economic growth and have reduced the level of pollution in the environment. there are winning and losing aspects for environmental sustainability as well as economic development with certain redevelopments (howell, 2020). on the basis of economic development, the environment quality is maintainable when feasible policies are developed. economic growth remains steady by endorsing a significant impact on the quality of the environment. an alarming situation could be created where the environmental quality is disrupted by the inequality in economic conditions. certain measures prevail in the environment quality which require proper management of economic development. in some asean countries, economic development is evaluated as a positive indicator of environmental quality. while ascertaining the development of economy, environmental development is dependent on international policies (han, 2017). when there is an increase in energy consumption, a significant impact on economic growth could be seen. although, a main contributor to the economy it also helps improve the quality of the environment. it is contingent upon the increment in consumption of renewable and nonrenewable resources which renders an impact on the environment quality. potential losses may also occur due to insignificant variance in economic development. in the discussion of environmental degradation, and financial and economic development, the impacts on small developing states are certain (seetanah et al., 2019). these impacts are determined from the behavioral aspects of economic conditions which fluctuate with the validation of environmental quality. the enhanced consumption of energy resources with the highest levels of pollution and global warming endorses a negative impact on the habitats of the environment. economic development could be enhanced significantly by lowered levels of pollution and improvements in technology. this wide consideration of economic growth in asean countries is eminent for improving the quality of the environment. various routes are designed for energy saving as well as maintain environmental quality that are natural due to ventilated income variation (sarkar & bardhan, 2020). different improvements in economic development significantly enhance the experience of the environment that could harm the potentials of energy. 3. research methods the ongoing study explores the influence of bioenergy production, biomass production, energy import, energy export, and economic development on the carbon emission of the asean countries. this study has extracted secondary data from published sources such as wdi for the years 2004 to 2019. this study has identified the environmental quality as a dependent variable while bioenergy production, biomass production, energy import, agbioforum, 23(1), 2021 | 16 muhammad buhari sibuea, siti rahmah sibuea and ikbar pratama. — the impact of renewable energy and economic development… and energy export have been used as predictors, and economic development has been used as a control variable. these constructs are used to develop the following equation: 𝐶𝑂2𝑖𝑡 = 𝛼0 + 𝛽1𝐵𝐸𝑃𝑖𝑡 + 𝛽2𝐵𝑀𝑃𝑖𝑡 + 𝛽3𝐸𝐼𝑖𝑡 + 𝛽4𝐸𝐸𝑖𝑡 + 𝛽5𝐸𝐷𝑖𝑡 + 𝑒𝑖𝑡 (1) where; co2 = carbon emission i = country t = time period bep = bioenergy production bmp = biomass production ei = energy import ee = energy export ed = economic development the environmental quality is measured in terms of the level of co2 emission from electricity and heat production (% total fuel consumption). moreover, bioenergy production is measured as the bioenergy production (% of total energy production), biomass production is measured as the biomass production (% of total energy production), energy import is measured as the energy import (% of energy use), energy export is measured as the energy export (% of energy use), and economic development is measured in terms of = gdp growth (annual %). these constructs, along with measurements, have been mentioned in table 1 table 1: measurements of variables s# variables measurements 01 environment quality co2 emission from electricity and heat production (% total fuel consumption) 02 bioenergy production bioenergy production (% of total energy production) 03 biomass production biomass production (% of total energy production) 04 energy import energy import (% of energy use) 05 energy export energy export (% of energy use) 06 economic development gdp growth (annual %) this study shows descriptive statistics including, mean values along with standard deviation, maximum and minimum values. furthermore, the current research also indicates that there is a nexus among the constructs by using a correlation matrix. if the values of the matrix show a negative sign that points to negative association; conversely, if values show positive signs that points to a positive association between the variables. this study also determines the appropriate model for the study by using the hausman test. the thumb role is that if the probability value of the hausman test is higher than 0.05, then accept h0 and the rem is deemed suitable, but if probability values are lower than 0.05, then it rejects h0, and the fixed effect model is suitable. the present study has executed the rem, and the equations for rem is given below: 𝑌𝑖𝑡 = 𝛽1 + 𝛽2𝑋2𝑖𝑡 + 𝛽3𝑋3𝑖𝑡 + 𝛽4𝑋4𝑖𝑡 + 𝛽5𝑋5𝑖𝑡 + ɛ𝑖 + 𝑢𝑖𝑡 (2) 𝑌𝑖𝑡 = 𝛽1 + 𝛽2𝑋2𝑖𝑡 + 𝛽3𝑋3𝑖𝑡 + 𝛽4𝑋4𝑖𝑡 + 𝛽5𝑋5𝑖𝑡 + 𝑤𝑖𝑡 (3) the equation (3) shows the wit = εi + μit and εi that exposes the individual-specific error component while μit exposes the time-series error component. the equation of rem for the given variables is as follow: 𝐶02𝑖𝑡 = 𝛽1 + 𝛽2𝐵𝐸𝑃𝑖𝑡 + 𝛽3𝐵𝑀𝑃𝑖𝑡 + 𝛽4𝐸𝐼𝑖𝑡 + 𝛽5𝐸𝐸𝑖𝑡 + 𝛽6𝐸𝐷𝑖𝑡 + 𝑤𝑖𝑡 (4) the current study also runs the generalized method of moments (gmm) to test the relationships between the constructs due to the model has heterogeneity issues. the estimations for the gmm model have been provided below: 𝑌𝑖𝑡 = 𝛿𝑌𝑖,𝑡−1 + 𝛽1𝑋1𝑖𝑡 + 𝛽2𝑋2𝑖𝑡 + 𝛽3𝑋3𝑖𝑡 + 𝛽4𝑋4𝑖𝑡 + 𝑢𝑖𝑡 + ɛ𝑖𝑡 (5) this study adopts the gmm model due to its specific features that control the autocorrelation and heteroscedasticity effects on the results, and the estimation equation for gmm is given as under: 𝐶𝑂2𝑖𝑡 = 𝛿𝐶𝑂2𝑖,𝑡−1 + 𝛽1𝐵𝐸𝑃𝑖𝑡 + 𝛽2𝐵𝑀𝑃𝑖𝑡 + 𝛽3𝐸𝐼𝑖𝑡 + 𝛽4𝐸𝐸𝑖𝑡 + 𝛽5𝐸𝐷𝑖𝑡 + 𝑢𝑖𝑡 + ɛ𝑖𝑡 (6) 4. findings table 2 presents descriptive statistics that show mean values along with standard deviation, maximum and minimum values. the average value of co2 is 1.645, while bep on average is 0.551. moreover, the average value of bmp is 0.262, and on average, energy import is 0.146. in addition, the average ee is 0.108, and the average ed is 2.289. agbioforum, 23(1), 2021 | 17 muhammad buhari sibuea, siti rahmah sibuea and ikbar pratama. — the impact of renewable energy and economic development… table 2: descriptive statistics variable obs mean std. dev. min max co2 160 1.645 0.571 0.179 3.437 bep 160 0.551 0.343 0.199 0.785 bmp 160 0.262 0.275 0.012 0.846 ei 160 0.146 0.209 0.002 0.983 ee 160 0.108 0.189 0.062 0.399 ed 160 2.289 1.714 1.450 5.836 the current study also demonstrates the nexus among the constructs by using a correlation matrix. the statistics above illustrate that bioenergy production, biomass production, energy import, energy export, and economic development have a negative association with the carbon emission of the asean countries. these statistics are highlighted in table 3. table 3: correlation matrix variables co2 bep bmp ei ee ed co2 1.000 bep -0.250 1.000 bmp -0.062 -0.429 1.000 ei -0.195 -0.481 -0.207 1.000 ee -0.224 0.588 -0.246 -0.069 1.000 ed -0.585 -0.033 0.083 0.113 0.332 1.000 this study also checks the appropriate model for the study by using the hausman test. the thumb role is that if the probability value of the hausman test is higher than 0.05, then the researcher shall accept h0 and rem as suitable, but if probability values are lower than 0.05, then it rejects h0, and the fixed effect model is deemed suitable. the statistics highlight that the value of probability is 0.134, which is higher than 0.05, and accepts the h0 that shows rem is suitable. these figures are shown in table 4. table 4: hausman test coef. chi-square test value 12.029 p-value 0.134 firstly, the present study checks the nexus with rem, and the results show that bioenergy production, biomass production, energy import, energy export, and economic development have a negative association with carbon emission or a positive association with the environmental quality of the asean countries. the r square value is 0.536, highlighting that 53.6 percent changes in co2 are due to bioenergy production, biomass production, energy import, energy export, and economic development. these figures are shown in table 5. table 5: random effect model (rem) co2 beta s.d. t-value p-value l.l. u.l. sig bep -0.703 0.102 -6.86 0.000 -0.904 -0.502 *** bmp -0.735 0.178 -4.14 0.000 -1.083 -0.387 *** ei -0.619 0.237 -2.61 0.009 -1.084 -0.155 *** ee -0.274 0.070 -3.90 0.000 -0.937 -0.412 *** ed -0.014 0.002 -7.19 0.000 -0.910 -0.018 *** constant 6.407 0.742 8.63 0.000 4.952 7.862 *** overall r-squared 0.536 number of obs 160.000 chi-square 151.197 prob > chi2 0.000 r-squared within 0.461 r-squared between 0.724 *** p<.01, ** p<.05, * p<.1 finally, the present study checks the nexus with gmm, and the outcomes reveal that bioenergy production, biomass production, energy import, energy export, and economic development have a negative association with carbon emission or a positive association with the environmental quality of the asean countries because the beta has agbioforum, 23(1), 2021 | 18 muhammad buhari sibuea, siti rahmah sibuea and ikbar pratama. — the impact of renewable energy and economic development… negative signs. the nexus among the bioenergy production, biomass production, energy import, energy export, economic development, and carbon emission is significant because the p-values are less than 0.05, and tvalues are greater than 1.64. these figures are highlighted in table 6. table 6: generalized method moments (gmm) co2 beta s.d. t-value p-value l.l. u.l. sig bep -0.626 0.126 -4.96 0.000 -0.875 -0.376 *** bmp -0.506 0.238 -2.13 0.017 -0.677 -0.264 ** ei -0.663 0.287 -2.31 0.008 -0.931 -0.204 ** ee -0.349 0.123 -2.83 0.005 -0.906 -0.593 *** ed -0.016 0.002 -8.82 0.000 -0.112 -0.019 *** mean dependent var 1.655 sd dependent var 0.573 number of obs 150.000 f-test 31.512 *** p<.01, ** p<.05, * p<.1 5. discussion and implication the present study also examines the impact of bioenergy production, biomass production, energy import, energy export, and economic development on the carbon emission of the asean countries. it has been indicated by the study outcomes that biomass production has a positive relationship with environmental quality. biomass is produced from the biological material which has absorbed and stored light from the sun and helps to lower the level of carbon dioxide present in the atmosphere. thus, biomass production lowers the earth’s heat/temperature and minimizes the amount of harmful gas in the air. these results are in line with the past study by mao, huang, chen, and wang (2018). this study examines the environmental quality of different countries, and the factors which worsens environmental quality i.e. emission of carbon dioxide and greenhouse gases. finally, it suggests that environmental quality can be maintained by encouraging the use of biomass production to meet the energy requirements. as biomass resources are pollutionfree and also help to remove environmental pollutants; therefore, through the production and use of biomass, the environment is more likely to remain safe and protected. these results are also in line with a past study by bilgili, koçak, bulut, and kuşkaya (2017), which indicates that the use of biomass energy is more friendly for the environment as compared to non-renewable fossil fuel energy because the production of biomass energy does not have any negative impacts on the environment; in fact, the forestation and plantation help to keep the atmosphere and land safe from pollutants. for this reason, biomass energy production keeps the environment safe from contaminating wastes and maintains environmental quality. the study results indicate that biofuel energy production has positive impacts on environmental quality. biofuel is the liquid or gaseous form of energy produced from forests, plants, or crops, which themselves are pollutionfree, and the process of generating biofuel energy from these renewable resources is also safe. thus, the production of biofuel energy is helpful in maintaining environmental quality. these results are supported by the literary work of li, watson, zhang, lu, and liu (2020), which indicates that the production of biofuel is a safe way to meet domestic and commercial energy requirements because biofuel such as bioethanol and biodiesel is produced from pollution-free food-based and non-foodbased crops. these results are also in line with a previous study by joshi, pandey, rana, and rawat (2017). this study throws light on the contribution of biofuel energy production to the environmental quality of any country. as compared to non-renewable energy resources, the production of biofuel does not add to carbon emission, sulfur emission, and the emission of other greenhouse gases into the air, and therefore, biofuel protection helps in maintaining environmental quality. the study results also indicate that energy import is considerably linked with the environmental quality of a country. the import of renewable energy resources is linked the environmental quality in a positive manner, while the import of nonrenewable energy resources affects the environmental quality in a negative manner. these results are in line with the past study conducted by gokten and karatepe (2016), which shows that bringing energy sources from foreign countries affects the environmental quality of the country. the import of renewable energy resources like biomass and biofuel in place of non-renewable energy sources like fossil fuels and nuclear power protects the atmosphere, natural resources, and most importantly, the health of living beings. these results are also supported by the study of moreno and garcía-álvarez (2017), which posits that with the import of renewable energy resources, the domestic environment can be kept safe from environmental pollutants. the import of renewable energy sources creates a protective work environment for the workforce. on the other hand, renewable energy sources are likely to contaminate the environment. the study results reveal that the export of energy sources has a significant impact on environmental quality. the results are supported by a past study by shakeel and ahmed (2020), which reveals that the export of renewable energy resources like biomass and biofuel, increases the amount of forestation and plantation within the country, and thus, improves the environmental agbioforum, 23(1), 2021 | 19 muhammad buhari sibuea, siti rahmah sibuea and ikbar pratama. — the impact of renewable energy and economic development… quality. on the other hand, the export of non-renewable energy (energy from the burning of fossil fuels) affects the environmental quality negatively as it creates environmental pollutants within the country. these results are also supported by the study of girard, gago, ordoñez, and muneer (2016), which shows that the export of energy raises the productivity of both renewable and nonrenewable energy, which affects the environmental quality accordingly. the study results have also shown that the economic development of a country has a positive association with environmental quality. these results are supported by the study of baloch, mahmood, and zhang (2019), which shows that the countries which have a high rate of economic development have a sound financial position and, thus, can launch different ecological programs to tackle environmental issues. these results are also supported by the study of charfeddine and mrabet (2017) which shows that when a country’s economy is developing at a fast pace, there is more productivity, and correspondingly, more earnings. these earnings enable the country to handle environmental pollution by launching different environmental campaigns to raising awareness in public regarding the environment, checking the environmental issues, and trying to get rid of these issues. this study carries several theoretical and empirical implications or lessons. the study has theoretical significance as it initial substantially adds to the literature on environmental protection. in the past, very little focus has been put on the combined contribution of the biological and economic factors to the quality of environment. this study is one of the pioneer attempts to explore both, he biological and economic factors in this regard. it deals with two biological factors like biomass and biofuel production and three economic factors such as energy import, energy export, and economic development, analyzing their impacts on the quality of natural resources, atmosphere, and the health of living beings. moreover, this literary article proves to be very useful to the ecologist and economists in developing countries because of the provision of proper guidance on how to maintain environmental quality. this study is potentially helpful for studies seeking to explore this area in the future as well as for regulators while formulating and implementing policies related to bioenergy production, biomass production, and carbon emission. the study posits that with the production of biomass and biofuel energy resources, good environmental quality can be maintained by reducing the emission of harmful gases into the air. moreover, environmental quality can be sustained and improved through the proper management of import and export of energy resources. moreover, this study also provides guidance on how to maintain good environmental quality while also achieving a high rate of economic development. 6. conclusion and implications the main focus of the current study is on the development and maintenance of environmental quality. the study analyzes the environmental quality of different areas within asean countries and seeks to determine the impact of different biological factors like biomass and biofuel production as well as economic factors such as energy import, energy export, and economic development of the environmental quality. the study examines that the inclination of the domestic governments and commercial entities to produce and use biomass energy proves to be helpful in maintaining good environmental quality. as biomass energy is generated from utilizing biological material which is absorbed and stores the light from the sun and reduces the carbon dioxide emission into the air, it minimizes the earth’s heat and keeps the environment healthy. similarly, the production of biofuel also helps in maintaining environmental quality. since the biofuel energy (the gaseous or liquid form of energy) is produced from plants, and crops, it is also are environment-positive for the atmosphere and land. moreover, the production procedure of biofuel energy is also safe, which means that biofuel production does not adversely affect environmental quality. moreover, the study highlights that both, the import and export of energy sources affects inland environmental quality. the import and export of renewable energy sources like biomass and biofuel do not adversely affect the environment, but they help to protect the environment against pollution. contrary to this, the import and export of non-renewable energy sources have an adverse impact on the environment. this study suggests the countries which have high economic development can actively run environmental campaigns and maintain environmental quality. although the present study has a number of theoretical and empirical implications, it has certain limitations as well. the authors put intellectual effort to overcome these limitations. firstly, only a limited number of biological factors such as biomass and biofuel production and economic variables like energy import, energy export, and economic development have been explored during the course of this study as indicators of environmental quality. it bears to note that there are additional factors that have a potentially significant impact on the country’s environmental quality which have not been discussed in this study. these unexplored factors should be addressed by scholars in the future in order to generate more valid and accurate findings. secondly, the quantitative data collected by the author of this study only pertains to asean countries and economies. this data may not be generalizable other developed economies as the asean countries have particular economic and geographical conditions which are unique. future researchers should seek to analyze the atmosphere in other countries in order to make the research outcomes of this 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(2019). the impact of democracy, corruption and military expenditure on environmental degradation: evidence from top six asean countries. humanities & social sciences reviews, 7(4), 333-340. doi:https://doi.org/10.18510/hssr.2019.7443 https://doi.org/10.1016/j.biortech.2019.122421 https://doi.org/10.1016/j.biortech.2019.122421 https://doi.org/10.1016/j.scitotenv.2018.04.173 https://doi.org/10.1016/j.scitotenv.2018.04.173 https://doi.org/10.1177%2f0958305x17724047 https://doi.org/10.1177%2f0958305x17724047 https://doi.org/10.1177%2f0958305x19899372 https://doi.org/10.1177%2f0958305x19899372 https://doi.org/10.17762/pae.v58i2.2367 https://doi.org/10.18510/hssr.2019.7443 agbioforum, 24 (2): 65-72. ©2022 agbioforum the water quality assessment and biodiversity of phytoplankton in phayao lake, phayao province, thailand sitthisak pinmongkhonkul department of biology, school of science, university of phayao 56000 thailand. email: sitthisak.pi@up.ac.th corresponding author rattapoom prommana department of environmental science, school of environmental science, university of phayao 56000 thailand email: smartrattapoom@yahoo.com thatchakorn khamkhunmuang department of biology, faculty of science, chiang mai university, chiang mai, 50200 thailand email: thatchakorn_nuni@hotmail.com shalinee singkurt department of biology, school of science, university of phayao 56000 thailand email: chalinee.ice@gmail.com akepawee sukcharoen department of biology, school of science, university of phayao 56000 thailand email: game120341@gmail.com warach madhyamapurush department of tourism and hotel management, school of business and communication arts, university of phayao 56000 thailand email: warachm@gmail.com the goals of this evaluation of phayao lake were to evaluate the physical, chemical, and biological water quality, to determine the phytoplankton biodiversity, and to examine the relationship between biodiversity and water quality. seven stations gathered samples for six months, from september 2020 to february 2021. twice a month, samples were collected from each location. the results identified eight divisions, fifty-nine genera, and eightynine species. the most prevalent division of phytoplankton was chlorophyta (45%), composed of 40 species. coelomoron sp. was the most dominant species, with 732 ± 252 individuals l-1. the ranges for the shannon – wiener index, the evenness index, the richness index, and the index of similarity were 0.210 to 3.101, 0.151 to 0.985, 0.481 to 6.487, and 40.00 to 76.11, respectively. based on the relationship between water quality variables and phytoplankton and utilizing statistical data analyzed using canonical correspondence analysis, phytoplankton was categorized into seven types, each of which was linked to an increase in dissolved oxygen levels. although community-use water was classed as having medium to low nutrient levels, the average water quality in terms of dissolved oxygen (do), biological oxygen demand (bod), conductivity, nitrate concentrations, and phosphorus was classified as having medium to high nutrient levels. because aquatic organisms use the area surrounding phayao lake as a nursery and breeding site, it has been. it will continue to be an important source of food for the community. aquatic animals use the area surrounding phayao lake as a nursery and breeding ground; hence, this area is and will continue to be an important food source for the local community. long-term monitoring determines the annual phytoplankton succession and identifies the progression of anomalous events, as recommended by the policy recommendations. key words: phayao lake; biological water quality; aarl-pp score; aquatic animals; nutrient sources. 1. introduction the largest freshwater lake in northern thailand, phayao lake, is located in the mueang phayao district of phayao province. as a living entity, algae are vital to aquatic ecosystems due to their ability to produce oxygen and their position as the principal producer in aquatic food chains. microscopic marine algae, phytoplankton, are microorganisms that are moved by wind and waves. distinct species require different conditions for growth in freshwater, brackish water, and saltwater (cetinić et al., 2006; saifullah et al., 2019; wu et al., 2020). moreover, temperature, wind, and light intensity significantly impact the water conditions of phayao lake during each season (han et al., 2021). consequently, there are statistically significant variations in phytoplankton levels depending on the season and lake region (p<0.05). cyanobacteria are the predominant phytoplankton at all sampling sites of phayao lake during both the wet and cold seasons (penny et al., 2005). according to the same study, cyanobacteria have the highest growth rate at water temperatures above 25 degrees celsius. cyanobacteria can have a variety of detrimental effects on the local community; microcystis aeruginosa, for instance, can produce poisons that are harmful to humans and aquatic animals, whereas anabaena sp. and oscillatoria sp. can produce odorous soil. due to cyanobacteria pollution in raw water during the rainy season, tap water preparation in the phayao lake region must be handled with caution (catherine et al., 2016; mooij et al., 2009; penny et al., 2005). previous research confirms the relationship between phytoplankton and water quality because various phytoplankton grows in water with varying attributes (ding et al., 2022; ding et al., 2021). some phytoplankton can only grow in high-quality water, while others can grow in high-quality water and wastewater. others can grow in high-quality water and wastewater (back et al., 2021; liu et al., 2015). the spread of phytoplankton is determined by the concentration of nutrients in the water. these nutrients may originate from municipal wastewater or agricultural and industrial sectors. when water is rich in nutrients, phytoplankton grows swiftly and scatter quickly. certain phytoplankton can create hazardous poisons for aquatic species and people who utilize the water (agnihotri et al., mailto:chalinee.ice@gmail.com mailto:game120341@gmail.com agbioforum, 24 (2), 2022 | 66 pinmongkhonkul, prommana, khamkhunmuang, singkurt, sukcharoen and madhyamapurush. — the water quality assessment and… 2021; tsuchiya et al., 2017). thus, phytoplankton can measure water quality (back et al., 2021; ding et al., 2021). the innovative aspects of this study include the phayao lake and lake biodiversity in northern thailand. these investigations also reveal that phayao lake experiences dynamic changes in its physical and biological parameters and is an appropriate water source for water quality and phytoplankton biodiversity research. because the lake is a substantial source of income for the neighboring community, it is especially vital to monitor changes in its characteristics. the purpose of this study is to examine and evaluate the water quality associated with specific physical and biological aspects to determine the phytoplankton biodiversity and to observe the association between the biodiversity and the water quality, as well as the relationship between them, of phayao lake at its highest water level (september to february). in addition, phytoplankton biodiversity, water quality, and interaction were analyzed. this study's findings will aid in the planning, monitoring, and managing of phayao lake's water sources to ensure the lake's long-term viability. seasonal differences in phytoplankton biodiversity and physiochemical properties were observed. 2. materials and methods 2.1 research sites around phayao lake, phytoplankton, large algae, and water were collected from several areas. water samples were analysed, and phytoplankton specimens were identified in the laboratories of the university of phayao's school of energy and environment and the school of science. the seven phayao lake sample stations were determined as follows: 2.2 collection of water samples and phytoplankton technique samples were obtained roughly 30 cm below the water's surface. they were gathered twice every site, once per month, from september 2020 to february 2121, for six months. at each sample location, two 1.5 l bottles of water were collected to determine the dissolved oxygen level of the water and the oxygen needed by microbes to break down organic waste. the map of seven sampling station in phayao lake (fig 1). phayao lake's outflow is located at station 1 in the port area of the inland fisheries research and development centre in district 1. it is impacted by human activities, such as fishing and sewage from cities. its geographic coordinates are n 19.15917793 e 99.91010808. the location of station 2 is the wat tilok aram pier. this station acts as a tourist attraction and is located near the city. this region is impacted by human activity, such as wastewater contamination and tourism garbage. its coordinates are n 19.16271169 e 99.9002685. station 3 is located at the naga monument. it is the station closest to the city and a popular tourist destination. the area is impacted by human activities, including municipal effluent, pollution, and garbage from tourism. it is located at n 19.16877668 e 99.89525411 latitude, longitude. station 4 is situated behind the phayao hospital. the water is murky with floating vegetation, and several plants are near the coast. this region is impacted by human activity, including fishing and hospital discharge. it is positioned at n 19.18913522 e 99.87584040. chao pho khun det shrine hosts station 5. it is the inlet region of phayao lake, which contains both floating and shoreline vegetation. the surface of the lake is murky. the area is impacted by human activity, including fishing and farming. it is located at n 19.20416675 e 99.86861911 latitude, longitude. the location of station 6 is the former ban thung kiew dock. the water is very transparent, with greenery along the coast and abundant floating vegetation. human activities (including fishing and farming) impact this region. it is positioned at n 19.1571868 e 99.86130707. station 7 is located at the archaeological site of ban rong hai. this area contains coastal and floating vegetation and is adjacent to fishing and farming regions. the sampling area is surrounded by numerous stores and is a tourist attraction. this region is impacted by human activity, such as fishing and wastewater storage. it is positioned at n 19.14891541 e 99.88689771. 20 liters of water were filtered with a phytoplankton mesh filter of 10 microns. the samples were then preserved with a solution of lugol's iodine. at each location, two 750 ml bottles of water were collected to measure the amounts of total nitrogen and phosphorus. figure 1: map of seven sampling stations in payao lake agbioforum, 24 (2), 2022 | 67 pinmongkhonkul, prommana, khamkhunmuang, singkurt, sukcharoen and madhyamapurush. — the water quality assessment and… 2.3 physical and chemical quality studies 2.3.1 physical studies during the investigation there are four physical factors were determined to determine their influence on phytoplankton growth; 1) a standard 30-cm secchi disk was used to measure the depth of light. 2) a multi-parameter (hanna hi 98194) was used to measure water temperature and conductivity. 3) air temperature was determined with a thermometer. 4) turbidity was quantified with a turbidity meter. 2.3.2 chemical studies; the study of phytoplankton photosynthesis (pp) on dissolved oxygen (do) dynamics was evaluated in a red sea bream (pagrus major) aquaculture site. (yoshikawa et al., 2007) 1) dissolved oxygen was analyzed by using the azide modification technique. 2) the oxygen amounts used by microorganisms to decompose organic matter or biochemical oxygen demand were determined using the azide modification technique. 3) a multi-parameter meter was used to measure ph values. 4) a phosphorus analysis was conducted using the ascorbic acid technique. 5) total kjeldahl nitrogen (tkn) was determined using the kjeldahl method (kang et al., 2022). 6) ammonia amounts were quantified by titration. 7) nitrate contents were determined by using the brucine method. 8) nitrate amounts were measured by the colorimetric method. 2.4 taxonomic classification and identification of phytoplankton species ➢ the morphology of phytoplankton was observed under a light microscope with 400x magnification, and verification was carried out with taxonomic documents or type-identification textbooks for classifying genus, such as the book freshwater algae in thailand (nukazawa et al., 2011). the total number of plankton on one slide (20 µl) was counted using the whole count method, and images were taken of each plankton found under the light microscope. the calculation for the number of phytoplankton found per 1,000 ml of water is as follows: initial volume (volume of the slide), initial concentration (cells volume of slide), volume factor (concentrated amount + amount decanted), concentration factor (which volume factor/concentrated amount), and final concentration in cells/liter (cells counted /slide volume) x (1/concentration factor) x (1,000/l) 2.5 water quality assessment by aarl-pp score method and management of water quality by type and quantity of dominant phytoplankton according to aarl-pp score (estifanos et al., 2022; kumsiri et al., 2021) phytoplankton was collected from seven locations using a 10 m phytoplankton mesh filter, with the amount of water collected varying according to phytoplankton abundance. from there, phytoplankton species were identified. in cases where species could not be identified, the three to five most prevalent genera were enumerated, and their scores were recorded. as the monitoring scores indicated the water quality, the results of each genus were averaged to determine the overall scores. the average results were compared to assess water quality and nutrient levels. 2.6 the correlation of all variables was analyzed using a statistical program for environmental research (multivariate statistical package, mvsp) (shahrokhi et al., 2021). 2.6.1 analysis based on a shared dataset, the percentages of phytoplankton taxa were estimated. the diversity of the species assemblage was quantified by the shannon– wiener index (h'), richness was evaluated by margalef's index (d), and evenness was determined by pielou's index (j) using the sorensen similarity index (species diversity and richness) 704 samples from 44 sampling locations along the yellow river were studied to determine the biogeographic, environmental, and anthropogenic influences on phytoplankton community composition (ding et al., 2022). 3. results and discussion 3.1 percentages of phytoplankton species found in phayao lake the phytoplankton population of phayao lake was comprised of eight divisions, 59 genera, and 89 species, as determined by a study of the phytoplankton found there. in the percentages of phytoplankton species in each division discovered, chlorophyta (45%, 40 species) was the most abundant division followed by euglenophyta (17%, 15 species), bacillariophyta (14%, 12 species), cyanophyta (12%, 11 species), pyrrophyta (5%, 4 species), chrysophyta (3%, 3 species), cryptophyta (3%, 3 species), and xanthophyta (1%, 1 species) (fig.2). according to the data, evenness indices for the phytoplankton collected from seven locations in phayao lake ranged from 0.563 to 0.985. in september 2020, the most evenness was observed at station 4, with a value of 0.985. in contrast, the lowest observed evenness index was 0.151 at station 7 in december 2020. (table 1). evenness indices of phytoplankton ranged from 0.563 to 0.985, indicating that the phytoplankton in phayao lake are extremely uniformly distributed as the value approaches 1. most of the seven stations' evenness indices agbioforum, 24 (2), 2022 | 68 pinmongkhonkul, prommana, khamkhunmuang, singkurt, sukcharoen and madhyamapurush. — the water quality assessment and… were relatively similar throughout the research, showing that the phytoplankton distribution did not vary significantly from month to month. in agreement with (catherine et al., 2016), who studied the phytoplankton distribution and water quality in coastal aquaculture areas of bandon bay in surat thani province in 2016, these results show that summer and winter had similar phytoplankton indexes; thus, the phytoplankton distribution did not vary with the seasons (jasprica et al., 2022). moreover, fluctuations in thermocline depth influence the vertical distribution discrepancies between phytoplankton and zooplankton. warming impairs phytoplankton regulation by lowering resource-consumer interactions that overlap (wang et al., 2020). figure 2: percentages of phytoplankton species in each division discovered in phayao lake from september 2020 to february 2021 table 1 the evenness indexes of phytoplankton discovered in phayao lake from september 2020 to february 2021 month station 1 station 2 station 3 station 4 station 5 station 6 station 7 september 0.868 0.792 0.841 0.985 0.881 0.241 0.912 october 0.699 0.776 0.856 0.863 0.901 0.807 0.954 november 0.773 0.865 0.770 0.680 0.805 0.739 0.806 december 0.804 0.942 0.804 0.899 0.662 0.881 0.151 january 0.780 0.646 0.626 0.891 0.895 0.704 0.563 february 0.859 0.830 0.761 0.838 0.813 0.852 0.800 3.2 richness index regarding the richness index recorded in phayao lake within the relevant time frame, the results indicated a range of 0.481-6.487. in january 2021, the station with the greatest phytoplankton richness index in phayao lake was station 5, with a richness index of 6.487%. in contrast, the station with the lowest phytoplankton richness index in october 2020 was 7. (table 2). table 2 the richness index of phytoplankton discovered in phayao lake from september 2020 to february 2021 month station 1 station 2 station 3 station 4 station 5 station 6 station 7 september 4.864 6.439 3.631 0.932 4.519 1.243 2.118 october 3.961 4.777 4.233 2.236 1.454 2.280 0.481 november 2.642 2.038 4.345 1.516 4.315 1.447 1.626 december 4.111 1.668 2.574 3.083 4.262 1.737 0.624 january 6.210 4.062 4.829 2.826 6.487 2.190 2.711 february 5.204 4.655 4.611 1.204 4.343 1.165 2.260 the observed richness indices throughout this investigation ranged from 0.48 to 6.487. station 1 in january 2021, station 2 in september 2020, and station 5 in january 2021 had the most dissimilar richness indices. the highest phytoplankton richness indices were 6.210, 6.439, and 6.487, showing that there are numerous phytoplankton species in phayao lake. in january 2012, the study assessed phytoplankton biodiversity in seagrass regions on ko yao yai in phang-nga province and found richness indices ranging from 2.51 to 4. the prediction accuracy of lake-scale and catchment-scale factors for local species richness was comparable (r2 = 0.458 and 0.424, respectively). seasonal temperature fluctuations agbioforum, 24 (2), 2022 | 69 pinmongkhonkul, prommana, khamkhunmuang, singkurt, sukcharoen and madhyamapurush. — the water quality assessment and… and nutrition availability considerably alter regional species diversity (catherine et al., 2016). 3.3 shannon-wiener index shannon-wiener indices for the phytoplankton biodiversity study conducted at seven locations ranged from 0.210 to 3.101. in january 2021, the highest shannon-wiener index was recorded at station 5, with a value of 3.101. in contrast, station 7 in december 2020 exhibited the lowest shannonwiener index of 0.210. (table 3). table 3 the shannon-wiener's index of phytoplankton discovered in phayao lake from september 2020 to february 2021 month station 1 station 2 station 3 station 4 station 5 station 6 station 7 september 2.682 2.768 2.383 1.364 2.638 0.265 2.101 october 2.093 2.432 2.563 1.986 1.755 2.070 0.662 november 2.041 1.798 2.268 1.494 2.451 1.537 1.676 december 2.278 1.516 1.852 2.306 1.914 1.418 0.210 january 2.794 2.027 2.086 2.215 3.101 1.690 1.523 february 2.798 2.654 2.387 1.631 2.476 1.527 1.989 the range of observed shannon-wiener indices from 0.210 to 3.101 is consistent with roschat et al. (2018). from april 2013 to september 2014, these researchers examined the water quality and phytoplankton biodiversity at rasi salai dam in si sa ket province, discovering shannon-wiener indices of 2.534, 2.997, and 3.404 for the summer, rainy, and winter seasons, respectively. in other words, the shannon-wiener index was highest during the winter, followed by the wet season and summer. the shannon-wiener indexes were high throughout this investigation, ranging from 1.36 to 3.101. nevertheless, among the seven locations, the indexes observed at station 7 in october 2020 and december 2020 were the lowest. at these two times, station 7's shannon-wiener indices were 0.210 and 0.662, which corresponded with the evenness and richness indexes found at the time. the evenness indexes for all locations ranged from 0.563 to 0.985, indicating that each phytoplankton species was spread extremely consistently. however, the distribution of phytoplankton was less even at station 7 in december 2020, with an evenness index of 0.151. additionally, the phytoplankton richness indices in the present study ranged from 1.165 to 6.487%. nevertheless, the richness indices of station 7 in october 2020 and december 2020, which were 0.481 and 0.624, show that the phytoplankton biodiversity of station 7 at those times was lower than that of other stations or months. the observed trend in the shannon-wiener index, the evenness index, and the richness index of station 7 in october 2020 and december 2020 was attributable to the abundance of dinobryon sp., measured at 25 ± 18 and 1492 ± 605 individual l-1. there were fewer phytoplankton species at this location than at other stations. therefore, station 7's shannon-wiener index, evenness index, and richness index were lower than those of other stations at the time. lipnicki et al. (2017) examined the water quality and phytoplankton diversity of phayao lake in 2017 and observed shannon-weiner diversity indexes ranging from 0.372 to 2.765; this implies a small increase in phytoplankton biodiversity in phayao lake. a study of phytoplankton populations along a tropical mangrove estuary in sarawak, malaysia, revealed a greater value during the dry season (saifullah et al., 2019). 3.4 similarity index in a similarity examination of the phytoplankton found at seven stations in phayao lake, the index of similarity between station 1 and station 3 was the greatest, at 76.11%. on the other side, the collection points with the lowest similarity indexes were: 1) station 1 and station 6 and 2) station 2 and station 6, both at 40%. the average similarity index of phytoplankton biodiversity across seven locations was 57.22 percent (table 4). table 4: similarity index (percent) of phytoplankton in phayao lake from september 2020 to february 2021 agbioforum, 24 (2), 2022 | 70 pinmongkhonkul, prommana, khamkhunmuang, singkurt, sukcharoen and madhyamapurush. — the water quality assessment and… the current study evaluated phytoplankton diversity in phayao lake, phayao province, from september 2020 to february 2021. the phytoplankton community comprises eight divisions, fifty-nine genera, and eighty-nine species. the division chlorophyta was the most numerous phytoplankton in this study, accounting for 45 percent or 40 species. according to (cetinić et al., 2006), the division of chlorophyta of green algae grows differently depending on the availability of nutrients and light. chlorophyta as the dominating phytoplankton division implies a high nutrient content, consistent with the water quality assessment and the amount of dominant phytoplankton as measured by the aarl-pp score technique (kumsiri et al., 2021). in another investigation, algal beads were utilized for tilapia cultivation water quality management (chen, 2001). the assemblage and variety of phytoplankton are extremely susceptible to climate change, and many species are employed as water quality indicators (murugesan et al., 2021). in this study, the nutrient concentrations in phayao lake were graded as medium to high, and the water quality was marginally substandard. due to the high nutritional content of phayao lake, green algae flourished rapidly and became the largest species in the division of chlorophyta. lipnicki et al. (2017) researched phytoplankton biodiversity in phayao lake from april to september 2020. chlorophyta was the main division of phytoplankton. in addition, an evaluation of the water quality using the aarl-pp score method revealed moderate nutrient levels and water quality. in contrast to division chlorophyta, division cyanophyta contained a significantly smaller number of cyanobacteria species (ding et al., 2022). however, the cyanophyta division had the highest density proportion, at 28%. the present investigation discovered that division cyanophyta may develop rapidly in neutral or slightly alkaline water and can endure unfavorable environmental circumstances. these algae cannot thrive in water with a ph between 4 and 5. (cho et al., 2021; schiel et al., 2019). 3.5 physical and chemical water quality assessments using the aarl-pc score technique in the present study, the physical and chemical water quality of phayao lake was determined by measuring do, bod, conductivity, nitrate levels, ammonia, and phosphorus levels over six months. the results reveal that the average water quality of phayao lake can be classified as moderate. however, the nutrient levels ranged from moderate to high and may be classified as meso-eutrophic. at station 2, the average water quality and nutrient concentrations were determined to be mesotrophic or moderate. in contrast, the water quality at stations 1, 3, 4, 5, 6, and 7 was moderate to somewhat bad, and the nutrient concentrations were moderate to high or meso-eutrophic. figure 3. examples of phytoplankton in phayao lake in the division of bacillariophyta from september 2020 to february 2021, e.g., achnanthidium minutissimum (kützing) czarnecki (1), achnanthidium sp. (2), amphora sp. (3), brachysira sp. (4), cymbella sp.1 (5), cymbella sp. 2 (6), diploneis sp. (7), fragilaria sp.1 (8), neidium sp. (9), rizosolenia sp. (10), synedra ulna (nitzsch) ehrenberg (11), acanthoceras zachariasii (12) 4. conclusions from the study of phytoplankton diversity in kwan phayao: from september 2020 to february 2021, all seven stations discovered phytoplankton belonging to eight divisions, 59 genera, and 89 species, with the chlorophyta division having the biggest proportion of phytoplankton species (45%), forty species. demonstrate that green algae in the division chlorophyta develop differently depending on the availability of nutrients and the light source in the water. examples of phytoplankton in phayao lake in the division of bacillariophyta from september 2020 to february 2021, e.g., achnanthidium minutissimum (kützing) czarnecki (1), achnanthidium sp. (2), amphora agbioforum, 24 (2), 2022 | 71 pinmongkhonkul, prommana, khamkhunmuang, singkurt, sukcharoen and madhyamapurush. — the water quality assessment and… sp. (3), brachysira sp. (4), cymbella sp.1 (5), cymbella sp. 2 (6), diploneis sp. (7), fragilaria sp.1 (8), neidium sp. (9), rizosolenia sp. (10), synedra ulna (nitzsch) ehrenberg (11), acanthoceras zachariasii (12) (fig.3). chlorophyta is a group of phytoplankton whose genus mostly indicates the quality of the accessible water. high nutrient content was consistent with the aarl-pp score method's water quality assessment by type and number of dominating phytoplankton. kwan phayao was found to have average water quality, with a medium to high nutrient level and poor to moderate water quality. in the study, the water temperature exceeded 25 degrees celsius, the optimal growth temperature for blue-green algae. 5. the suggestions for further study in the global water pollution industry, the difficulties of addressing climate change have intensified. participation by academics and researchers in community processes to make advice and conduct workshops is permissible. additionally, the system is dynamic due to the future hazards connected with climate change. to develop such adaptation, it is necessary to evaluate risk management and resiliency in the context of fisheries and climate change. to achieve water management, it would be possible to identify the right methods for each socialecological subsystem. government officials and scholars should develop learning approaches and utilize them to coach individuals. traditional knowledge and risk management practices that have been passed down over many generations, when paired with current understanding and technology, can be used to manage water systems in the face of climate change. the private sector can use social media to support water management. finally, youth organizations and clubs should advocate for water management. 6. conflict of interest the authors declare that there are no conflicts of interest. 7. acknowledgments the university of phayao partially supported this research. we thank the department of biology, the school of science, and the university of phayao for laboratory access. references agnihotri, k., & kaur, h. 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level income in malaysia: a time series analysis sobhia saifan al-ahliyya amman university, hourani center for applied scientific research email: s.saifan@ammanu.edu.jo rida shibli al-ahliyya amman university, hourani center for applied scientific research email: r.shibli@ammanu.edu.jo i.a ariffin management and science university email: indang@msu.edu.my https://orcid.org/0000-0002-1376-7126 mohd shukri ab yajid management and science university email: shukri@msu.edu.my https://orcid.org/0000-0001-5688-4392 jacquline tham management and science university email: jacquline@msu.edu.my https://orcid.org/0000-0003-0966-2425 it is important to explore and understand the role of climate change adaptation and agricultural extension services at farm level to understand their effectiveness for outcomes like increase in farm-level income actions at the policy level. in the current study, has explored the impact of climate change adaptations and agricultural extension services on the farm level income of rice paddy farmers in malaysia. the study is based on collection of primary data from x farmers by use of structured interviews across malaysia. the researcher has used logistic regression analysis to find the determinant of adaptation climate change and extension services and then use propensity score matching technique for estimation of causal impact of these factors on the from level income. the findings showed that extension services and climate change are vital factors that can affect the farm level outcomes like income and output. the differences in the education and experience levels, the dependence of the household on the crop income, resources and tenancy status of the farmers were found to be influence their status of adapting to the climate change initiatives. whereas increased access to education and experience of farmers was related with the extension services of the farmers. the effect of the climate change and extension propensity scores were found to significantly influence the farm-level income. moreover, the study indicates that adapters and non-adapters are both oriented towards extension services and these services include better outcomes for the performance of the crop and result in increased productivity. overall, it can be summarized with that this study implies and increased need of farmers education, ease of access to extension services, information dissemination about role of climate change in farm outcomes and sustainable food production, local food security is needed to develop productivity in income and other crop level outcomes. keywords: climate change adaptation, agricultural extension services, farm-level income, malaysia 1. introduction any change in climate makes it difficult for the farmers to grow the crops on land as there are a lot of factors involved in such processes to establish agriculture practices. the change in climate, such as drought, can make the soil barren and infertile, due to which the nutrients in crops are not available, and the crops are also not able to grow due to increased scarcity of water. the agriculture extension services have been seen to mitigate such issues. the farmers would be educated enough to control the situations with better handling skills so that climate change does not impact their farms (shobande, 2021). different circumstances may also occur during climate change as the growing season of crops in agriculture can be shortened due to aggravated situations in the climate changes. the farmers face many difficulties during the production phases as the land issues may also arise due to climate change, such as global warming can increase the negative impact on the crops and the soil fertility. however, suppose farmers are provided with better skills to utilize in agricultural practices. in that case, soil infertility can be controlled and mitigated with better practices, and farmers can have unique ideas to overcome the situation. according to time series analysis, the impact of climate change on agriculture may have a minor to a huge effect on crops, land, soil, and production. the extreme climate changes make the soil unable to grow many productive crops, and the quality of plants is also reduced, which can threaten the farmers with a challenging note for food scarcity that might impact their future income. moreover, the damage to crops can be increased as the changes in climate and environment can give rise to other major factors such as soil infertility, water scarcity, barren land, and many other issues (masud, azam, mohiuddin, banna et al., 2017). the climate change issues have a considerable impact on the agriculture and the crop production as the extreme changes in weather patterns may also make framers stressful to deal with these issues. the problem statement for this study can be stated s the famers must be provided with better education and standard information about changes in climate and how to deal with these issues. the significant use of extension services in malaysia is the need of hour to help framers sin such circumstances. with the help of better knowledge to overcome climate issues farmers can manage the intervals without any impact on their income level (akhtar, masud, & afroz, 2019). literacy rate of farmers is being considered to increase at a global level in accordance to changes in climate that may have a great effect on crops productivity as well as income level of farmers. malaysian government is also working to provide the farmers with enough knowledge to handle the mailto:s.saifan@ammanu.edu.jo mailto:r.shibli@ammanu.edu.jo mailto:indang@msu.edu.my https://orcid.org/0000-0002-1376-7126 mailto:shukri@msu.edu.my https://orcid.org/0000-0001-5688-4392 mailto:jacquline@msu.edu.my https://orcid.org/0000-0003-0966-2425 agbioforum, 23(2), 2021 | 73 saifan, shibli, ariffin, yajid, and tham. — climate change and extension services' effects on farm level income in malaysia … extreme climate issues as the drought and flood. the current study is based on promoting the extension services for farmers to provide them adequate knowledge to manage their crops fields in unfavorable weather patterns. the researchers are trying to fill up gaps in agriculture department of malaysia to provide farers with better skills to manage the farm land in a professional way. it is revealed from past studies that agriculture department of malaysia did not provide enough attention towards the extension services of farmers and it was considered useless to literate farmers as they were considered proficient in their traditional practices to hold various circumstances. various past researches have shown the evidences that farmers are not able to manage the natural weather effects as per traditional practices. the current study is based on resolving the conventional gaps in farming techniques and utilizing the extension services in agriculture to provide farmers with basic knowledge to keep their farm level income in progress and manage the climate issues on crop productivity in a professional way. the study highlights the main issues that farmers have to undergo during climate issues as they could not earn better income in drought or flood season as 20% to 30% of farmers have to face extreme poverty in those time intervals for not financial resources or income is attained. as described the main issues of climate change on agriculture in the above section of interdiction the objectives of the particular study can be highlighted here. the agriculture extension services are provided to farmers to increase their managerial skills to have a firm control on the crop production and to tackle the impacts of weather pattern son their fields (alam, siwar, murad, & toriman, 2017). following are some objective for the current study: • to explore ideas in improving the farm level income of farmers • to study the different aspects of climate change and managerial skills of farmers in mitigating the issues. • to implement a drastic change in farmer behavior in order to eradicate their difficulties the current study is established to overcome the climate issues in farming practices and to provide enough information to framers to manage their resources in a meaningful way. the malaysian government must have to implement some policies to educate the framers according to advanced techniques and innovative measures keep their farm level income in progress even during extreme climate issues. the scope of study is to illuminate the consequences of agriculture extension rate and providing farmers with the best equipment to bring a considerable change in their abilities to mitigate the climate issues in farm land (al-amin, masud, sarkar, leal filho et al., 2020). significance of this research is to develop some concern for the agriculture department as the government of malaysia can initiate the educative programs for the farmers to enhance their skills and to promote the literacy of farmers in the country. in such a way the farmers can have better livelihood to keep going their expenditures in extreme climate issues. the quality of crop fields will be upgraded and farmers could be able to utilize their efficient skills in a productive way. the farmers specifically from rural areas would be able to improve their lifestyle and poverty issues might be resolved. current study structure is followed by introduction as the first chapter. the literature review is discussed in second part of study followed by methodology in next chapter. the forth chapter discusses findings of research conducted while the last part is based on discussion and conclusion. agbioforum, 23(2), 2021 | 74 saifan, shibli, ariffin, yajid, and tham. — climate change and extension services' effects on farm level income in malaysia … 2. literature review 2.1 theory of environmental and climatic changes and sustainable development about half a century ago climatologists in different reports published the mild changes being observed in the climate of the planet. they also stated the reason behind these changes and entitled them as the result of the human activities. with the passage of time and developments in the industrialization the fear of these changes keeps on increasing. intergovernmental panel on climate change (ipcc) was established in 1988, because of these theories and growing concern of the world meteorological organization. the theory defines the climatic changes as mild to severe changes in the pattern of climate that can be due to natural variability and may be because of human activities. however it comparatively emphasizes more on the effect of human activities that have direct or indirect effect that also has an alternating effect towards the composition of the atmosphere (brönnimann, 2015). while relating the human activities with the climatic changes’ theory states the emission of greenhouse gases that have drastically increased. the emission of greenhouse gases is related to the burning of fossil fuels (dansgaard, johnsen, reeh, gundestrup et al., 1975). the theory also presents a threat of significant increase in the temperature of the planet after each decade. climatologists have also expressed their fear that the climate changes will keep on taking place if no sustainable development goals will be set to protect the environment and ecosystems. negative impacts of urbanization can be clearly observed in social, economic, and environmental aspects. 17 sustainable development goals (sdg’s), which aims to direct the global economies towards state sustainability. the sustainability science is no less than a milestone that aims to explain the relation between natural and social characters in world and also states the factors that can improve this interaction and pave the way towards a more sustainable trajectory (bossel, 1999). to achieve the sustainable development, it is mandatory to emphasize on four different capitals natural capital, manufactured capital, human capital, and social capital. the idea of weak sustainability is based on the human centred view, that natural capital can be replaced by the manufactured capital, therefore as long as the total capital keeps increasing in the process of development despite of degrading the natural capital to an unrecoverable extent, the development is sustainable (ab yajid, 2020; dasgupta, 2007). contrarily the idea of strong sustainability is based on natural capital view and is of the idea that natural capital is irreplaceable. it believes in the development of the human beings without threatening the natural environment and depleting natural resources (van den bergh, 1996). this idea sums up by stating that economic development must not exceed the natural limits posing harm to natural capital. 2.2 climatic changes and farm level income over the past century, rapid changes in the human activity have led to a drastic change in the look of the planet which is termed as urbanization. this has led to development of industries across the globe that have negative consequences towards the environment and human health. urbanization is result of activities like deforestation, burning of fossil fuels which have intensely affected the climate of the planet and local, regional, and global level. thus, global warming is regarded as the core reason behind the climatic changes taking in the world. a comparison between the climate in pre-industrial period and the current industrial and urbanized age, a drastic change in the pattern of the climate is observed. global warming is regarded as the average increase in the temperature being observed on annual basis which have significant negative influence on the human life, wild life, environment and ecosystems (alcamo, flörke, & märker, 2007). the effects of industrialization are severe towards the environment that an increase of emission of carbon dioxide which was 280 parts per million in the pre-industrial where it has increased to 413 parts per million in 2020. emission of such heavy amount of carbon dioxide not only contributes to global warming but also has negative consequences towards human life. global warming has significantly affected the agriculture and the farm level income of the farmers. an average increase of 2-3oc has been observed in the temperature of the world and a noticeable change in the rainfall patterns has also been observed (telo da gama, loures, lopez-piñeiro, quintino et al., 2021). this affects the rural livelihood and the crop production and yield being produced at different geographical locations of world. therefore, resilience of the agriculture sectors towards the climate changes is especially important, as agriculture sector is of vital importance contributing towards the economy of many countries (aklilu & makalela, 2020). moreover, the pattern of rainfalls has also greatly changed. broadly considering the rate of precipitation across the globe, the rate has decreased two to three folds compared to the pre-industrial times (gleick, 1989). however sudden unexpected spells of heavy rainfall have become a norm across the globe in the seasons which cause damage to the crops. moreover emission of carbon dioxide along with other polluting gases also negatively affect the crop production and cause severe compromise on the quality of crops that also effect the income level of farmers (alam, siwar, talib, & toriman, 2014). studies have revealed that the climatic changes being observed across the globe have affected the land productivity and income of farmers. a decline in the income of farmers have been observed because of the climatic changes affecting the crop production and crop quality. depending upon the region in the world and the effect of climate changes, farmers have been observed to suffer in terms of both crop productivity and income. findings of research have concluded that a change in the precipitation patterns and increase of temperature have affected on average 5-20% of the farmer income across the globe (hekstra, 1986). therefore, the climatic changes significantly affect the farmer’s income level. 2.3 extension services and farm level income extension service is considered as the prime force and of vital importance in development of rural agriculture areas and farmers of these areas. extension service has become agbioforum, 23(2), 2021 | 75 saifan, shibli, ariffin, yajid, and tham. — climate change and extension services' effects on farm level income in malaysia … a norm across the world especially in the agricultural countries with the aim of up bringing the rural areas and the lifestyle of farmers. in the last century information and communication technology along with other diverse branches of science have led to stupendous developments and inventions for the welfare of mankind and have also improved the lifestyle of the mankind (labarthe, 2009). knowledge of correct use of technology by the concerned people can result in overwhelming outcomes and can also save humankind from disasters. extension service deals in educating the people of the rural areas by offering them advice to help them deal and tackle with their problems. this is done to increase the efficiency of the farm families, to increase and enhance their production and thus leads towards the improvement of their lifestyle. extension agents are set to interact with the farmers, investigate their difficulties, discuss their matters, and give them the best possible solution and educate them enough to broaden their insight ensuring they are capable enough to deal with all the hurdles. with the monumental developments of science and technology encompassing all the aspects of human life agriculture has no exceptions. implementation of the technology in the domain of agriculture can help to improve the yield, productivity and also boost the life style of the farmers (maffioli, ubfal, vazquez-bare, & cerdaninfantes, 2013). this results in the prosperity of the economic development. the idea of extension service further expands to assist and educate the farmers regarding the use of modern technology to enhance and improve their farming. this can help the farmers and economy to develop better with the use of technology and make the achievement of the agricultural goals more efficient. the vast amount of research being conducted to improve the agricultural practice need to be effectively conveyed to the farmers to ensure the practical implication of the findings of this research. agents of service extension also communicate the findings of new research to improve the farming practices and boost the farming outcomes. moreover, the extension service agents also aim to guide the farmers regarding the economy and marketing rules and techniques and ensure to keep them aware of the changes taking place in the markets and prices. the practice of extension service therefore has a positive influence on the income level of the farmers. therefore development of extension service can help build resilience of the farmers towards the climatic changes and other hazards towards the crop production and crop quality (reynolds, 2011). agents of extension service educate the farmers regarding the global warming and climatic changes taking place and assisting them towards the environmental shocks can safeguard the crops as well as the income of farmers. it has been predicted that if no considerable attention is given towards the issue of climate changes and global warming it is expected that agriculture sector around the world will have to face the most severe effects. therefore, timely knowledge regarding these changes and educating farmers to tackle with these changes can help the farmers from great economic losses and crop losses. application of new scientific techniques like new variants of crop, changing the plantation times, use of new fertilizers can help to prevent great setbacks expected by the climatic changes. therefore, extension service has a strong influence on the farmer’s income level. the following hypothesis can be generated for this study: h1: climatic changes have a considerable effect towards the farm level income. h2: extension service significantly influences the farm level income 3. material and methods 3.1. study area and data collection the study area in the current research is malaysia which is a southeast asian country categorized as equatorial and is usually hot and humid across the year (muhammad, man, abd latif, muharam et al., 2018; tan, fam, firdaus, tan et al., 2021). in granary areas of the country, rice production is major as it is cultivated twice yearly between march to july and august to february. rice is a major crop in malaysia and accounts for over 70% of the overall agricultural production of the country. therefore, rice farmers are selected as unit of analysis in this study. initially, the researcher interviewed four hundred different farmers from agricultural zones of malaysia selected by use of a multi-sampling technique. later, farmers that do not grow rice crop were dropped. finally, a sample of 362 farmers was maintained. the researcher used a structured questionnaire that was composed of pre-tested items for conducting face-to-face interviews for the collection of information about the various characteristics of the farmers in terms of socio-economic characteristics, access to different extension services and climate change adaptation strategies. 3.2. adaptation decisions in this study the researcher has used the factor of climate change adoption as a measure of avoiding losses that may occur due to changes in the climatic indicators such as humidity and temperature. the farmer will be termed as an adaptor in case he/she has implemented some rice management measures against climate changes and as a non-adapter if no adaption or management strategy were implemented. for modelling of the random utility framework for t random utility framework adaptation decisions made by rice farmers, the study of kato, ringler, yesuf, and bryan (2011) was followed. it was assumed that the ith farmer will only choose to use some adaptation strategy for rice crop to manage climate change if the expected benefits are considered as positive abid, scheffran, schneider, and ashfaq (2015). the followed latent variable, 𝑈𝑖 ∗, is used for representing the difference of net benefits: 𝑈𝑖 ∗= 𝛽𝑋𝑖𝑘 + 𝜇𝑖 (1) in the above equation, 𝑋𝑖𝑘 represents the vector x of k explanatory variables in the study, 𝛽 is the logistic regression coefficient vector, and 𝜇 is representing the error term. however, the above latent variable is unobservable, and it can only be represented as: agbioforum, 23(2), 2021 | 76 saifan, shibli, ariffin, yajid, and tham. — climate change and extension services' effects on farm level income in malaysia … 𝑈𝑖= { 1 𝑖𝑓 𝑈𝑖 ∗ > 0 0 𝑓 𝑈𝑖 ∗ ≤ 0 } (2) in above equation, 𝑈𝑖 is the ith farmer that will adapt their rice cultivation to climate change in case net benefits are positive (𝑈𝑖 ∗ > 0) and not adapt in case net benefits are negative (𝑈𝑖 ∗ ≤ 0). to measure the overall adaptation impact on rice productivity, it is vital to measure selfselection and a reduced form of ordinary least square (ols) equation is used as followed. yij = λxij + ψui + 𝜖i (3) in above equation, yij represents the vector of outcome variables for the ith farmer, and 𝜖i represents the error term. 3.3. propensity score matching propensity score matching (psm) is also used in this study to resolve the issue of selection bias. in this technique, adapter and non-adapters groups are paired based on the similarity of the observable characteristics (dehejia & wahba, 2002). in accordance with rosenbaum and rubin (1983), psm is defined as a conditional probability variable used for representing the probability of a farmer to adapt to climate change. psm is represented as: p(xik) = pr [ui = 1| xik] (4) in above equation, p is the propensity scores of xik, pr is the probability, ui is adaptation to climate change, and xik represent pre-adaptation characteristics. overall, psm can be divided into five steps. first step is to use theoretical assumptions to select some pre-test covariates. secondly, propensity scores (p-value) need to be estimated by use of logistic regression. nearest neighbour method is used next for and the fourth step is to calculate the causal effects of adaptation on the outcome variables. in the last step, the adequacy of the results is tested by use of sensitivity analysis. 3.4. causal effect of adaptation to climate change ate (average treatment effect) or att (average treatment effect on the treated) is used for calculation of the effect of climate change adaptation on outcome variables. following the work of ali and abdulai (2010), causal effects are represented as followed: 𝜏𝑈𝑖=1 = e(𝜏|ui= 1) = e(𝑌1|ui= 1) e(𝑌0|ui= 0) (5) where, 𝜏 is ate, and y1 are outcome variables for adapter group, and y0 are outcome variables for non-adapter group. furthermore, att can be computed as followed: t = e {y1y0 | ui= 1) = e [e {y1y0 | ui= 1, p(x)}] = e [e {y1 | ui= 1, p(x)} e {y0 | ui= 0, p(x)} | ui= 0] (6) where, t is representing att, and p(x) represents propensity scores. att is obtained by calculation of the difference between the selection bias effect and the value of ate. 3.5. sensitivity analysis the purpose of using psm can be explained as stabilization of covariates distribution among adapter and non-adapter groups (lee, 2013). a hidden bias issue may arise in case of an unobserved factor simultaneously impacting decision factor and its outcome variables causing the matching estimates to be inaccurate (rosenbaum, 2002). therefore, after matching the estimates, model adequacy tests are carried out to make sure that such a bias does not exist between the two groups (ali & abdulai, 2010). several indicators are used for this sensitivity analysis such as hosmer and lemeshow test, fstatistics, r2-statistics, etc. furthermore, the bound test by rosenbaum (2002) is also used to calculate the average adaptation effects (att) by calculation of the wilcoxon signed rank. 4. results 4.1. descriptive summary table 1 is depicting the descriptive summary for the variables being used in the study. the table presents the specification of the factors with reference to the adapters and non-adapters i.e., the farmers and farms adapting to the climate control practices and those that are not. this information was collected through a one-to-one interview with various rice farm owners and rice farmers in malaysia, as discussed in the previous section. the differentiation between the non-adapters and adapters indicates of the importance of these factors and how essential these are to understand the local adaptation to climate change. the table indicates that the farm income or the net crop income was found to be slightly higher in case of the adapters than the non-adapters. similarly, the adapters were found to have more experience, education, greater access to extension services, education, and more land under cultivation in comparison with the nonadapters. these findings are consistent with the previous findings of abid et al. (2015); antwi-agyei, stringer, and dougill (2014); bastakoti, gupta, babel, and van dijk (2014) which indicated that educated and experienced farmers sought extension services more keenly and adapted with the climate control requirements more compared to the less experienced and educated farmers. it is possible that the experienced and educated farmers are more informed and observant compared to the lesser experienced and educated ones about the ongoing changes in the environment. also, better education correlates with increased access to and knowledge of the extension services. likewise, the adapters were also the ones who had greater access to and sought the extension services. thus, the adapters had large-scale farms and increased access to the institutional services like credit, weather forecasts, market information and of course extension. these findings substantiate that extension services and adaptation to climate change led practices lead to increased farm income. moreover, access to institutional services has agbioforum, 23(2), 2021 | 77 saifan, shibli, ariffin, yajid, and tham. — climate change and extension services' effects on farm level income in malaysia … a positive effect on the farmer adaptation decisions. these findings are consistent with bastakoti et al. (2014) and bryan, ringler, okoba, roncoli et al. (2013). however, the non-adapters can be seen to support a larger household size and increased dependence on agricultural income. thus, showing that increased dependence on the agricultural income is a factor mitigating the adaptation to the climate change practices. table 1: descriptive statistics adapters non-adapters difference total farm income (thousand myr) 1080 1061 19 farming experience (years) 30.55 23 7.55 education (years of schooling) 10.62 6.95 3.7 household (hh) size (numbers) 12 9 3 household head (1 if farmer is hh's head, zero otherwise) agricultural source of income (1 if agriculture is the main income source, zero otherwise) crop area (hectares) 0.86 0.75 8.35 0.81 0.63 6.18 0.05 0.12 2.17 tenancy (1 if farmers is owner-cultivator, zero otherwise) tube well (1 if farmer owned a tube well, zero otherwise) 0.83 0.78 0.71 0.63 0.12 0.15 soil fertility (1 if soil is fertile, zero otherwise) credit services (1 if farmer had access, zero otherwise) 0.55 0.12 0.67 0.09 0.12 0.03 extension services (1 if farmer had access, zero otherwise) 0.27 0.25 0.02 market information (1 if farmer had access, zero otherwise) 0.70 0.65 0.05 weather forecasting information (1 if farmer had access, zero otherwise) 0.92 0.79 0.13 4.2. propensity score as explained previously, the matching process initiates with the estimation of the propensity scores for the dependent variable. for this purpose, a logistics regression model has been used where the probability of increased farm level income was regressed to numerous covariates. the results of the estimation of the propensity scores are depicted in table 2. the results are showing that most of the households and farm-specific variables influence the probability of increased farm-level income. particularly, farming experience, adaptation to climate change practices, extension services, education, market information, agricultural source of income and information on weather forecasting tend to expedite the increased farm level income. these findings are in line with the previous studies of adaptation to climate change requirements and farm and crop level income (ahmad, mustafa, & iqbal, 2016; bryan et al., 2013; deressa, hassan, ringler, alemu et al., 2009). the negative coefficient of the tenancy status in the present study indicates that the owners of farms were less likely to adapt to the changes required by climate change compared to the tenants. the difference in the levels of education, household access, resources, and experience of the tenants and owners is indicative of the differences in the levels of adaptation. moreover, the study indicates that adapters and non-adapters are both oriented towards extension services and these services include better outcomes for the performance of the crop and result in increased productivity. table 2: propensity scores estimate standard error z-value farming experience (years) 0.04 0.01 3.46*** education (years) 0.13 0.03 4.16*** household size (numbers) 0.02 0.02 0.94 household head (dummy) agricultural income source (dummy) 0.15 0.56 0.29 0.29 0.54 1.94** area under wheat crop (hectares) tenancy status (dummy) tube well (dummy) 0.00 0.84 0.29 0.01 0.28 0.24 0.09 3.00*** 1.18 soil fertility (dummy) farm credit (dummy) agricultural extension (dummy) 0.33 0.12 0.11 0.25 0.40 0.29 1.32 0.29 0.36 market information (dummy) 0.65 0.27 2.39** weather information (dummy) 0.86 0.36 2.38** (intercept) 2.88 0.70 4.11*** hosmer p-value 0.33 pseudo r-squared 0.23 4.3. effects of adaptation and extension services on farm level income after the calculation of the propensity scores, the nearest matching neighbour or the nmn method was used for the matching of the control group (non-adapters) to the treatment group (adapters and enforcers of agricultural extension) based on the propensity scores. during the process of matching, the nnm removes the unmatched adapters and levelled enforcers of agricultural extension and hence it leads to the reduction in the sample size by 30%. the next step is to calculate the average adaptation effects on the crop productivity, the per hectare crop income before matching, and the access to agricultural extension (table 3). the result of the post-matching indicates that the adaptation to climate change reflects positively on the crop productivity and farm income. moreover, the agricultural extension is also resulting in significant effects on the farm income. the value of the att indicates that the adapters generate myr 5243 per agbioforum, 23(2), 2021 | 78 saifan, shibli, ariffin, yajid, and tham. — climate change and extension services' effects on farm level income in malaysia … hectare more returns for the farms and farmers that are implementing the climate change practices. however, the ate values are indicative of myr 7271 per hectare and indicate of higher crop income compared to the att estimates. also, the age results in myr 2451 benefit for the application of agricultural extension. thus, the difference between these values is due to selection bias that is occurring because of the other observable variables and was reduced during the propensity matching. if the test had not been performed before the estimation of the extension and adaptation effects, the results might be misleading and biased. higher productivity and farm level income for adapters also implies that a positive impact of the adaptation and extension on the wellbeing of the farmers. additionally, the higher yield of extension and adaptation leads to increased supply of crop to the market as well resulting in increased farm level income. table 4 is demonstrative of the indicators that have been tested for verification of matching model. the results are showing that a decline in the goodness of fit after matching, which implies that after matching there is no systematic difference in the distribution of the covariates between the adapters, applicators of agricultural extension and non-adapters. thus, any differences in the outcomes of all three groups would only result due to adaptation and application of agricultural extension. moreover, the significance level of the likelihood ratio indicates a shift from a significant model to the insignificant model after the matching process. this indicates that the covariates are no longer associated with extension and adaptation after matching. the f-value of the model is indicative of the overall insignificance of the model and comparable results have been generated for hosmer and lemeshow test which shows a decline in the model estimation propensity after matching. the mean difference for the distance has also decreased and the overall matching indicates that there is 61% reduction in selection bias. all the results are indicating that there is substantial reduction in the bias obtained through matching and the model is not dependent on the observed factors before matching. the results for the sensitivity analysis have been indicated in the table 3 as well. table 3: sensitivity analysis net crop income (myr/ha) number treated (adapters) 139 number control (non-adapters) 139 ate 7271 (2.85) * att 5243 (1.39) * age 2451 (1.37) ** wilcoxon signed rank (wsr) p-value 0.04 confidence interval for treatment effect (c.i.) 1.10e1.15 it can be concluded that adaptation and extension have a positive and significant impact on the crop yield and farm income. these results imply that the farmers who adopted more climate adaptation and agricultural extension achieved higher net income at the farm level compared to the non-adapters and lack of agricultural extension. table 4: covariate balance indicators of covariates balancing before matching and access to extension services after matching and gaining access to extension services pseudo r2 0.21 0.03 p-value of likelihood ratio 0.00 0.73 f-stat value 78.42 (0.00) 12.41 (0.27) hosmer and lemeshow test values 12.16 (0.36) 9.1(0.19) mean standardized difference 0.16 0.06 total% bias reduction e 60 5. discussion for this research study, a model was designed to determine the impact of climate changes as well as extension services on the farm level income in malaysia. a time-series method was conducted for this study. the empirical study has been conducted for better analysis of the study. three important results have been obtained from this research which are discussed as follows: firstly, it has been observed that the climate change is a natural phenomenon and many of the farmers adapt themselves to such change. however, in this case both adapters as well as non-adapters are observed. the households of non-adapters are usually dependent on their “agricultural incomes” (chu, venevsky, wu, & wang, 2019). this depicts the reason for non-adapting to the climate change by different farmers. however, the land under the adapters, is found to produce more crops as they adapt the climate change effectively. the extension services are found to play a key role in this regard. the adapters are mostly educated farmers who have a good knowledge about the crop productivity as compared to non-adapters. the education and knowledge, both are considered to be important factors in this regard (goglio, williams, balta-ozkan, harris et al., 2020). the “institutional services” are also found to have a positive impact on the decisions made by the farmers for adapting to the changing environment. agbioforum, 23(2), 2021 | 79 saifan, shibli, ariffin, yajid, and tham. — climate change and extension services' effects on farm level income in malaysia … secondly, the findings obtained from this research study show that different variables specific to the households as well as farms, have important impact on the adapting of the climate changes by the farmers. other factors such as education, experience, information from the market and income, are also found to play an important role in this decision-making processes (jha, gupta, chattopadhyay, & sreeraman, 2018). this research study showed that the tenants were more educated as compared to the owners and this was the reason that the tenants were more adapted to the climate changes. however, the responsibilities of the tenants were also more as they must set off the rents as well as to manage a larger household. this also improves the overall income at the farm level. these are some of the reasons for such adapting intentions of the tenants. thirdly, the empirical statistics show that the adaptation to the climate changes increase the overall crop productivity as well as the income at the farm level. this encourages the farmers to adapt to such changes more effectively to obtain better outcomes as the proper use of natural resources can lead to better outcomes. a number of other resources including the fertilizers, land, seeds etc. are also found to play an efficient role in this process (lan, xu, sheng, yu et al., 2018). the overall “agricultural income” is found to be increased when the adaptation to the climate changes become common among the farmers especially at the farm level. however, the extension services are also found to play a significant role in better crop productivity leading to an increase in the income at farm level. different studies have also found to support this argument (oduor, waweru, lenchner, & neustaedter, 2018). the more educated the farmers are, the more they are capable to obtain a better income by improving their adaptability to the natural environment. thus, both adaptation to the climate changes as well as the extension services, are found to have a significant impact on the farm level income. 6. conclusion the change in the climate is considered to have a drastic impact on the crop production if no timely adaptation to such changes is carried out. such timely adaptation process helps in lowering the experienced losses by the farmers under such conditions. for this study, the impact of climate changes and extension services on the farm level income in malaysia is considered. this research study helped in determining the impact of different external as well as internal factors on the adaptability as well non-adaptability of the farmers at the farm level, to the climate changes (roesch-mcnally, arbuckle, & tyndall, 2018). the extension services were also found to have a significant impact on improving the crop productivity which in return increases the farm level income. the trainings as well as education helps in improving the technical efficiencies of the rural farmers as well which help them in improving the overall income at the farm level. however, the household attributes were also considered in case of the non-adapters as they must manage such households. however, the adapters were more likely to increase crop productivity for an increase in farm level income. the empirical statistics of this research study also showed that the current adaptation methods being used by the farmers are short-term as well as less costly. it has been concluded that a combination of adaptation methods, was found to be more effective if a single method is used for this purpose. the adaptability of such changes not only help the farmers to improve their agricultural incomes, but it also improves the “food security” of the society. 7. research limitations and future research study indications even though the adaptation to climate changes is still considered to be a hot topic in today’s world but still almost no such research study has been conducted in the past to determine its impact on the farm level income. this research study will help in improving the literature for this topic and encouraging more researchers to opt for determining its impact on the income at farm level. this will be significant as every country around the globe is promoting sustainable development. it will not help in determining diverse ways to retain the natural resources, but it will also help in increasing the economic growth. for this study, only malaysia was considered, and the time-series data was obtained that only showed the impact of the discussed variable on the farm level income for a particular country. the cross-sectional studies should be promoted to improve the analysis for obtaining effective measures to increase the agricultural income of the farmers especially in the rural areas of different countries. this study helped in providing empirical statistics as well as policy implications to improve the farm level income. this will encourage the governments to develop such important policies for improving the crop productivity ensuring the security of food for the residents. 8. implications the significance of the adaptation to the climate changes by the farmers, is being considered by different governments of the countries. many policies have also been developed to improve the farm level income around the world by encouraging the adaptation to the climate changes by the farmers. for this purpose, both public as well as private sectors along with different ngo’s, are also found to play a vital role. the implementation of extension services is also encouraged to improve the overall income of the agricultural sector in malaysia. this helps in providing different combinations of the adaptation methods to improve the overall income at the farm level. the education of the farmers is also considered important for this purpose. the malaysian government has introduced different educational programs as well as training programs for such farmers especially of the rural areas to encourage them to promote the adaptability to the climate changes. proper awareness is also provided to the farmers thus promoting the adaptation methods of climate changes. this will help in providing the security of the food for the overall society thus increasing the crop productivity which will result in an increase in the farm level income. agbioforum, 23(2), 2021 | 80 saifan, shibli, ariffin, yajid, and tham. — climate change 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https://doi.org/10.1080/13504509.2021.1920064 https://doi.org/10.3390/agriculture11060569 https://doi.org/10.3390/agriculture11090814 https://research.vu.nl/en/publications/ecological-economics-and-sustainable-development-theory-methods-a https://research.vu.nl/en/publications/ecological-economics-and-sustainable-development-theory-methods-a https://research.vu.nl/en/publications/ecological-economics-and-sustainable-development-theory-methods-a agbioforum, 21(3): 48-56. ©2019 agbioforum the impact of agricultural growth on the rural development in vietnam dinh hong linh thai nguyen university of economics and business administration, thai nguyen, viet nam nguyen thi thu cuc* vinh university, vinh city, viet nam email: cucntt@vinhuni.edu.vn nguyen cong tiep viet nam national university of agriculture, ha noi, viet nam nguyen xuan diep thai nguyen university of economics and business administration, thai nguyen, viet nam vu bach diep thai nguyen university of economics and business administration, thai nguyen, viet nam kwak busung thai nguyen university of economics and business administration, thai nguyen, viet nam nguyen nang hung vinh university, vinh city, viet nam rural development is a global relevant phenomenon that needs the particular attention of researchers as well as regulators to achieve the development goals it entails. considering this, the present study investigates the impact of agriculture growth, agricultural employment and import and rural population growth on rural development in vietnam. this study is conducted based on the secondary data extracted from world development indicators (wdi) from 1981 to 2018. this study executes the autoregressive distributed lag (ardl) model to investigate the nexus among the variables. the results show that agriculture growth, agricultural employment and import and rural population growth have a positive nexus with rural development in vietnam. this study offers valuable insights for rural area development authorities and policy experts to help formulate effective and responsive policies to promote agricultural growth and develop rural societies. keywords: agriculture growth, agricultural employment, agricultural import, rural population growth, rural development 1. introduction to improve living standard in rural areas, vietnam built a new rural program that is being implemented since 2010 through 3 stages with distinct goals and standards designed for each region/period. by april 2019, vietnam had 4,340 communes (48.68%) meeting the new rural standards. on average, communes across the country have reached the 15.26% criteria (hoang thanh, ta nhat, nguyen dang, ho, & lebailly, 2018). there are no more communes below five criteria and69 district units in 34 provinces and cities are now recognized to meet standards/complete building a new rural. the appearance of villages is changing every day, as the criteria gradually improves. at the same time, the implementation of product development policies, programs and schemes has helped increase the income of rural people and contributed to a reduction in the poverty rate of rural households. after three years, several positive results are observed in these two villages. at the same time, from the pilot model, the leaders of thai nguyen province have drawn lessons, adjusted and customized policy plans to build a new rural area of the province in a ten year period from 2020 to 2030 (d. l. nguyen, grote, & nguyen, 2017). this paper is interested in exploring the rural development progress, results & outcomes in thai nguyen province achieved during the period 1980 – 2019? the author is also interested in gaining valuable insights and lessons from the movement of saemaul undong in the new rural development period 2020 – 2030 for vietnam. the present study examines the impacts of agricultural growth, agriculture employment, agricultural import, and rural population growth rate on patterns of rural development in the rural regions of vietnam. vietnam is a lower-middle-income country located in southeast asia. currently, it ranks as the 23rd largest country globally in terms of purchasing par parity, while in terms of nominal gross domestic product, it ranks at 36th largest in the world. as per the statistics of 2019, the gross domestic product (gdp) of the country is $369.494 billion, which counts for a 6.8 per cent gdp growth rate. since the introduction of economic reforms in 1986, vietnam has been recognized as one of the world’s fastest emerging economies. the economy of vietnam is divided into three major sectors: agriculture, industry, and services (h. q. nguyen, 2017). the agriculture sector has a 15.3 % share in the annual gdp. it provides employment opportunities to 38.6% of the total labor force. the major agricultural products are coffee, rice, tea petals, maize, cassava, pepper, cashew nut, and sweet potato, which saves vietnam a high rank among agricultural countries. the main agrarian items that vietnam exports are pepper, rice, coffee. as per the statistics of 2019, 65.6% of vietnam’s population lives in rural areas. the high growth of agriculture enables the rural areas to develop at a faster rate. to steer rural development in vietnam, there has been a ministry of agriculture and rural development (mard) since 1945. since its formation, mard has been responsible for implementing the official government mandate for rural development, governance, and the protection and mailto:cucntt@vinhuni.edu.vn agbioforum, 21(3), 2019 | 49 dinh hong linhfirst author, nguyen thi thu cuc*, nguyen cong tiep, et al. — the impact of agricultural growth on the rural…. promotion of agriculture and the agriculture sector in vietnam (kerkvliet & porter, 2018). the population in rural areas in vietnam has been decreasing with time as individuals and families migrate to more urbanized centers of the country in pursuit of a better quality of life. vietnam rural population by 2016 was 61,324,000, a 0.03 decline from 2015; vietnam rural population by 2017 was 61,324,000, a 0.03 decline from 2016, vietnam rural population by 2018 was 61,223,241, a 0.01 per cent decline from 2017, vietnam rural population by 2019 was 61,129,966, a 0.15 per cent decline from 2018 (n. t. long & nguyen, 2018). increasing urbanization however comes at the cost of depletion of human and capital resources, therefore, there is a dire need to guide the rural population on how social and economic life can be improved within rural areas to avoid migration. under the consideration of this urgent need, this study makes an analysis of the contribution of agricultural growth to the development of rural areas in vietnam. the agriculture sector contributes only 14 per cent to the country’s gdp, which is less than the services sector and the industry sector. these figures are illustrated in figure 1. figure 1: sectorial share of gdp in vietnam the aim of the current study is to analyze agricultural growth in terms of development in agriculture, agriculture employment, agriculture import, and rural population growth and gauge their impact on the degree of rural development. as rural economies are mostly agro-based, many researchers and scholars have thrown light on the role of the agricultural industry in steering and facilitating higher rural development. the studies have addressed only the direct impacts of agriculture on the well-being of rural people. in comparison, the current research has addressed both direct and indirect impacts of the agricultural industry on rural development. moreover, most existing literature focuses the role of agriculture in achieving high-quality rural life, however, the current study expands the scope of existing literature as it further analyzes different forms of agricultural growth on rural development. 2. literature review most rural areas lack adequate facilities and amenities of life which exist in abundance in urban areas. for example, the availability of good quality infrastructure requires transportation facilities, education, medical clinics and stores, and recreation etc. to acquire these facilities, many rural people turn towards urban areas and put increased pressure on the urban environment and infrastructure. in order to cope up with these issues, rural areas need to develop at a higher rate (dell, lane, & querubin, 2018). when the living standard of the rural population is high, and they have access to quality health and education services and have the capacity to invest in different socioeconomic ventures, that they can collectively improve their quality of life and modernize their lifestyles. as the health of general people and the growth of different economic sectors is somehow dependent on agricultural products, the growth of the agriculture sector brings development in rural society. the growth of the agriculture sector, agriculture employment, agriculture import, and rural population growth rate affect patterns of rural development (bauer, 2016). the effects of the growth of the agriculture sector, agriculture employment, agriculture import, and rural population growth rate on rural development have been explored in numerous research studies in the past. the current research on new rural areas mainly focuses on operation methods, identifying achievements vis-à-vis rural development, and analyzing challenges and limitations in the process of implementing development plans. from there, the authors propose appropriate solutions to complete the construction of new rural areas. the mispa (2006) project with: "the theory and practice agbioforum, 21(3), 2019 | 50 dinh hong linhfirst author, nguyen thi thu cuc*, nguyen cong tiep, et al. — the impact of agricultural growth on the rural…. of building a new socialist rural" by translator cu ngoc had been translated into china's socialist new rural issue. in this work, the author introduces the concept and significance of socialist new rural construction (n. v. long, 2019). according to the author, building a new socialist rural area is an integrated effort that includes stakeholders in the agriculture, rural development authorities and independent farmers into a long-term historical and communalistic mission. key objectives and tasks of building a new socialist rural include, "development of production, prosperous life, civilized village, clean and beautiful appearance, democratic management" (thao, van tu, phuc, & nguyen-viet, 2018). the construction of a new socialist countryside must comply with a scientific plan which shall serve as a guiding document for implementing new rural construction. as the development of new rural areas is complicated and long-term, it is necessary to develop feasible, responsive, and effective scientific mechanisms and policies, ensuring that the new rural construction is conducted in a planned manner. although these views are controversial, it is the basis for socialist countries to build and develop the agricultural sector and rural economies. giang and nguyen (2016) evaluate the implementation of the national target program on rural development strategies. developing new rural areas and pointing out some emerging shortcomings in this process enhances the effectiveness and efficiency of state and social investment in rural development. besides, the article also proposes recommendations and solutions to complete the new rural development policy in vietnam. dung and sharma (2017) points out the highlights in building a new countryside in vietnam. agricultural production must preserve the national traditional cultural identity and at the same time ensure the well-being of the ecological environment. in that study, the researchers assess the results of the implementation of the national target program on new rural development and pointing out some emerging shortcomings that may have reduced the effectiveness and efficiency of state and social investment efforts towards rural development, which was the basis for proposing solutions to complete the new rural construction policy in vietnam. t. p. nguyen (2018) assesses the role of agriculture and rural development in the industrialization and modernization of vietnam and found there to be a close relationship between urban industry and rural agriculture, contributing to the overall growth and development. therefore, building new rural areas of vietnam is a key priority of development plans and has instrumental value for the overall growth and development of the country. agriculture is the most significant occupation of a rural area. most of the rural population directly or indirectly belongs to the agriculture sector. an agriculture sector grows when there is special attention is given to the agricultural activities, needs, and production at different levels. when the agriculture sector grows, there is a higher productivity (crops and livestock), better quality & a diverse variety of products, and increased employment opportunities. the growth of agriculture determines the social well-being of the rural people, their living style, the quality of natural environment, and the economic development of rural areas (arif, 2019). when agriculture in a specific rural area grows, there is high productivity and more improvement in the quality of the agricultural product. the availability and use of sufficient and healthy agricultural products in casual food keep the rural population healthy and energized for their social and economic activities. a well-established agriculture sector enhances social interaction among the rural population during different agricultural processes like sowing seeds, irrigation of concerned land, harvesting, breeding animals, an inspection of good quality crops and livestock, and transfer of crops and livestock to the market. moreover, the growth of the agriculture sector enhances household income and, thus, the living standard of the rural population improves (cai & xia, 2018). the agriculture sector is a major source of employment for rural residents. fast-growing agriculture system provides employment opportunities not only to those who are directly linked with the agricultural activities and but also those who have an indirect connection with the agriculture system as agricultural activity implies the need to provide different crops and livestock as a raw material to other economic sectors, say, sugarcane is a raw material for sugar mill which provides employment to hundreds of rural citizens. the provision of employment opportunities enables people to have the capacity to earn money and fulfil their financial needs (dev, 2017). when the agriculture processes are operating smoothly and using upto-date resources and machinery, they yield more products for which they also need more efficient workers. these workers are employed on higher wages, raising the living standard of residents, and enhancing their purchasing powers. high incomes also improve their social well-being as they can engage in more communal welfare activities. in financial terms, a higher incomes also enables rural citizens to make an investment in rural development programs, which may be in the form of initiatives for education, medicine, and construction (matthew et al., 2019). agriculture import refers to the purchase of agricultural resources which are essential to agriculture survival and growth and agricultural products which are used to meet the needs of domestic and foreign populations. products like fertilizers, pesticides, agricultural machinery, logistics, harvesting tools, and technology to be used for breeding livestock, can be imported to facilitate domestic agriculture. the import of high-quality fertilizers enables farmers to generate a higher crop yield that is better able to meet the social and economic needs of rural people. this helps generate impetus for rural development (unaygailhard & bojnec, 2019). the import of pesticides helps save crops from insects, pests, or diseases resulting from agbioforum, 21(3), 2019 | 51 dinh hong linhfirst author, nguyen thi thu cuc*, nguyen cong tiep, et al. — the impact of agricultural growth on the rural…. contact with these insects and pests. use of these pesticides, seeds and skilled human resources can be exploited to the largest possible extent as in this way, it is possible to produce a larger amount of good quality crops like maize, rice, wheat, sugarcane, coffee, and useful weeds can be cultivated and harvested. these crops are used to meet domestic needs and for the growth of different commercial mills and medicine. thus, agriculture import positively impacts the economic and social standing of rural people (d. l. nguyen, grote, & nguyen, 2019). natural, residents of rural regions provide the labour force needed to perform different agricultural activities like the cultivation of crops, the breeding of livestock, and ensuring provision of these products for the benefit of rural society and economy. thus, it is posited that the total strength of the rural population or rural population growth rate affects the survival and growth of the agriculture industry. when there is a large population in the rural areas, there is a large number of human resources which can facilitate the agricultural sector and ensure the growth of the agricultural sector which ultimately leads to the well-being and welfare of rural communities (sohns & diez, 2018). similarly, rural areas where there is large population will garner more attention from government authorities as a larger portion of the electorate can lead to heightened pressure on official bodies to implement prodevelopment laws, policies, and programmatic interventions for the benefit of rural citizens. for example, in the most populous rural areas, the government undertake special efforts to provide medical and educational facilities to the residents so as to produce healthy and skilled human capital which can bring about positive outcomes across aspects of rural life (t. v. nguyen & tran, 2018). 3. methodology this article investigates the impact of agriculture growth, agricultural employment and import and rural population growth on rural development patterns in vietnam. this study uses secondary data sourced from the world development indicators for the years 1981 to 2018. for the purposes of the study, the author has executed the autoregressive distributed lag (ardl) model to investigate the nexus among the variables. the estimation equation for the study is as follow: 𝑅𝐷𝑡 = 𝛼0 + 𝛽1𝐴𝐺𝑡 + 𝛽2𝐴𝐸𝑡 + 𝛽3𝐴𝐼𝑡 + 𝛽4𝑅𝑃𝐺𝑡 + 𝑒𝑡 (1) where rd = rural development t = time period ag = agriculture growth ae = agriculture employment ai = agriculture import rpg = rural population growth this study identifies rural development (rd) as the dependent variable measured in terms of assessing basic needs, rural (% of rural population). in addition, the present research identifies three predictors i,e. agricultural growth (ag) that is measured in terms of the volume of agriculture, forestry, and fishing, value added (annual % growth), agricultural employment (ae) that is measured as the share of agriculture in overall employment (% of total employment) and agricultural import (ei) that is measured as the agricultural raw materials imports (% of merchandise imports). finally, the present study also takes rural population growth (rpg) as the control variable measured in terms of the rate of rural population growth (annual %). these measurements of variables are outlined in table 1 along with the corresponding sources of data. table 1: variables with measurements s# variables measurement sources 01 rural development assessment of basic needs in rural area, (% of rural population) world development indicators 02 agricultural growth agriculture, forestry, and fishing, value added (annual % growth) world development indicators 03 agricultural employment employment in agriculture (% of total employment) world development indicators 04 agricultural import agricultural raw materials imports (% of merchandise imports) world development indicators 05 rural population growth rural population growth (annual %) world development indicators this article presents the descriptive statistics in the analysis that show the variables' minimum and maximum values and calculates the standard deviation and mean values of the variables. the analysis section also displays the correlation matrix that shows the multicollinearity issue. in addition, this study also checks the stationarity of the variables with the help of the augmented dickeyfuller test (adf). the equation for adf is given below: 𝑑(𝑌𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑌𝑡−1 + 𝑑(𝑌𝑡(−1)) + ɛ𝑡 (2) the stationarity of individual variables has also been examined, and estimation equations of adf for each variable are mentioned below: rural development 𝑑(𝑅𝐷𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑅𝐷𝑡−1 + 𝑑(𝑅𝐷𝑡(−1)) + ɛ𝑡 (3) agbioforum, 21(3), 2019 | 52 dinh hong linhfirst author, nguyen thi thu cuc*, nguyen cong tiep, et al. — the impact of agricultural growth on the rural…. agricultural growth 𝑑(𝐴𝐺𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐴𝐺𝑡−1 + 𝑑(𝐴𝐺𝑡(−1)) + ɛ𝑡 (4) agricultural employment 𝑑(𝐴𝐸𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐴𝐸𝑡−1 + 𝑑(𝐴𝐸𝑡(−1)) + ɛ𝑡 (5) agricultural import 𝑑(𝐴𝐼𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐴𝐼𝑡−1 + 𝑑(𝐴𝐼𝑡(−1)) + ɛ𝑡 (6) rural population growth 𝑑(𝑅𝑃𝐺𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑅𝑃𝐺𝑡−1 + 𝑑(𝑅𝑃𝐺𝑡(−1)) + ɛ𝑡 (7) the stationarity of the variables has been selected as the suitable model for testing the hypotheses. the results indicate that the ardl model is appropriate, and the equation for the ardl model is provided as under: ∆𝑅𝐷𝑡 = 𝛼0 + ∑𝛿1∆𝑅𝐷𝑡−1 + ∑𝛿2∆𝐴𝐺𝑡−1 + ∑𝛿3∆𝐴𝐸𝑡−1 + ∑𝛿4∆𝐴𝐼𝑡−1 + ∑𝛿5∆𝑅𝑃𝐺𝑡−1 + +𝜑1𝑅𝐷𝑡−1 + 𝜑2𝐴𝐺𝑡−1 + 𝜑3𝐴𝐸𝑡−1 + 𝜑4𝐴𝐼𝑡−1 + 𝜑5𝑅𝑃𝐺𝑡−1 + ɛ1 (8) in the equation above, δ1, δ2, δ3, δ4, & δ5 have been highlighted as the coefficients for short-term relations among the constructs; while φ1, 𝜑2, φ3, φ4, & φ5 have been mentioned as the coefficients of long-term nexus. the error correction model equation is as follows: ∆𝐸𝐷𝑡 = 𝛼0 + ∑𝛿1∆𝐸𝐷𝑡−1 + ∑𝜑2∆𝐴𝐺𝑡−1 + ∑⍵3∆𝐴𝐸𝑡−1 + ∑𝜃4∆𝐴𝐼𝑡−1 + ∑𝛶5∆𝑅𝑃𝐺𝑡−1 + 𝛿𝐸𝐶𝑀𝑡 + 𝜐𝑡 (9) 4. results firstly, this article presents the descriptive statistics from the analysis of data. these statistics show the variables' minimum and maximum values as well as the standard deviation and mean values of the variables. these descriptive statistics values are highlighted in table 2. table 2: descriptive statistics variable mean std. dev. min max rd 3.098 1.554 2.055 11.763 ag 1.294 1.125 1.102 3.663 ae 1.287 1.541 1.183 2.789 ai 2.225 1.852 2.189 3.504 rpg 1.265 1.514 1.145 3.310 secondly, the analysis section also presents the correlation matrix that shows the multicollinearity issue. the outcomes indicate that the correlation matrix values are less than 0.90, showing no issue of multicollinearity. in addition, a positive association is found among the predictors and predictive variables. these figures are presented in table 3. table 3: correlation matrix variables rd ag ae ai rpg rd 1.000 ag 0.481 1.000 ae 0.235 0.535 1.000 ai 0.539 0.170 0.575 1.000 rpg 0.293 0.314 0.443 0.219 1.000 thirdly, this study gauges the stationarity of the variables with the help of adf. the stationarity of each individual variables has been examined. the values of adf show that some variables are stationary at a level such as ag, ae and rpg, while some of the variables are stationary at the first difference, such as rd and ai. these values have been presented in table 4. table 4: unit root test the co-integration between the constructs has been examined with the help of the ardl bound test. the outcomes indicate that the value of calculated f-statistics (5.68) is more than the critical values. these values have been shown in table 5. augmented dickey-fuller test (adf) level t-statistics p-values rd i(1) -7.739 0.010 ag i(0) -4.013 0.043 ae i(0) -3.245 0.030 ai i(1) -7.699 0.000 rpg i(0) -6.285 0.000 agbioforum, 21(3), 2019 | 53 dinh hong linhfirst author, nguyen thi thu cuc*, nguyen cong tiep, et al. — the impact of agricultural growth on the rural…. table 5: ardl bound test model f-statistics lag level of significance bound test critical values i(0) i(1) rd/ (ag, ae, ai, rpg) 5.68 4 1% 5.21 5.37 5% 4.17 4.49 10% 3.03 3.09 the ardl model outcomes reveal that agriculture growth, agricultural employment and import and rural population growth have a positive nexus with rural development in vietnam in the short run. in addition, the r square value (0.6466) has been indicated that 64.66 per cent of variations in rural development are due to agricultural growth, import and employment and rural population growth. these figures are highlighted in table 6. table 6: short run coefficients variable coefficient std. error t-statistic prob. d(ag) 0.576452 0.141029 4.087471 0.0013 d(ae) 0.320860 0.160242 2.002346 0.0410 d(ai) 8.701202 1.391072 6.255034 0.0038 d(rpg) 0.090552 0.048634 1.861907 0.0031 cointeq(-1)* -1.284823 0.243171 -5.283615 0.0000 r-squared 0.646651 mean dependent var -0.030852 adjusted r-squared 0.545255 s.d. dependent var 3.525322 finally, the ardl model results indicate that agriculture growth, agricultural import, and rural population growth positively and significantly affect rural development in vietnam. however, results also indicate that agriculture employment has a positive but insignificant nexus with rural development. these values are shown in table 7. table 7: long term coefficients variable coefficient std. error t-statistic prob. ag 2.992114 1.144177 2.615079 0.0432 ae 0.188623 0.219853 0.857951 0.3622 ai 0.185651 0.061687 3.009564 0.0021 rpg 2.262038 0.843211 2.682648 0.0325 c 0.855174 0.778095 1.099061 0.2855 5. discussions and implications the study results indicate that agricultural growth has a significant and positive impact on rural development. the study implies that agriculture and its growth is one of the most important indicators of rural development. the fluency and stimulation in the agricultural activities provide almost all the necessary things required for the growth and development of rural areas from both, an economic and social perspective. these results are in line with a previous study by hrabák and konečný (2018), which indicates that in the rural areas where the agricultural growth rate is high, there is more attention given to the fertility of land, cultivation and productivity of crops, care and breeding of livestock. this increases the employment opportunities for the rural population and provides resources for the development of economic and social organizations within the rural area. these findings are also in line with findings from a previous study by mausch et al. (2018), which shows that the high rate of agriculture in the rural areas causes positive interaction among the rural population during sowing seeds, irrigation of concerned land, harvesting, breeding of animals, an inspection of good quality crops and livestock, and transfer of crops and livestock to the market. moreover, developments in the agricultural sector improves the employment rate for the rural population, facilitates their lives, increases their purchasing power, and thus, enhances their overall social well-being. these agbioforum, 21(3), 2019 | 54 dinh hong linhfirst author, nguyen thi thu cuc*, nguyen cong tiep, et al. — the impact of agricultural growth on the rural…. results are also in with the previous study of bonfiglio et al. (2017). this study investigates the role of agricultural growth in the achievement of high rural development. the growth in agriculture through modern technology and resources ensures more productivity of crops used as food, fibers, fuels, and raw material of different sorts of industrial organizations. thus, the growth in agriculture accelerates the rural development rate, domestic wellbeing of the rural population and the development of all economic organizations operating in the rural areas. the study results also indicate that agricultural employment has a positive relationship with rural development. these results suggest that the increase in the agricultural employment rate improves individual living standard, which improves the overall social well-being of the rural population, enabling and encouraging them to make more substantial investments in different sectors of the rural economy. thus, the rise in employment in agriculture enhances rural development. these results are also in line with the previous study of alzu’bi, hawashin, mujahed, jararweh, and gupta (2019), which states that the regions falling under the rural side of the country are more likely to experience fast development when the employment rate in the agriculture industry is high. rural development in the form of traditional, social, and economic sectors increases when people who belong to rural areas have high incomes, high purchasing power, and are leading a prosperous life which is only made possible when they have employment opportunities. these results are also in line with the previous study of agyei‐okyere et al. (2019), which indicates that a high employment rate in agriculture indicates fluency in agricultural activities, effective consultancy, and high productivity of agricultural products. this leads to an increase in the capacity of the rural population to improve their living style and being in a better position to invest in the construction and operation of organizations and institutions which facilitate their social lives such as educational institutions, medical clinics, medical stores, general stores, and communitybased tourism. the study results also indicate that the import of essentials of agriculture is linked with rural development in a positive manner. these results are in line with a past study by gebre and gebremedhin (2019), which demonstrates that the opportunity to purchase up-todate technology and different agricultural tools assists in the preparation of land for cultivation and performance of different agricultural activities. it enhances agricultural growth, its share in rural income, and improves the overall rural development. these results are also supported by the past study of duncombe (2016), which shows that the import of things essential for agriculture encourages agricultural activities, creates continuity in these activities, enhances agriculture productivity and increases employment opportunities for the rural population. thus, a higher agriculture import enables the rural community to facilitate and expedite development in the rural area. the study results also indicate that the rural population growth rate has a positive association with rural development. these results corroborate findings from a the past study conducted by pelucha and kveton (2017), which shows that as agriculture is the most significant rural occupation, the scope of agriculture and its development predominantly depends on the population. the high population growth rate ensures a larger labour force or employee base for the agriculture sector as well as other economic and social organizations. thus, the high population growth rate drives higher rural development. these results are also supported by the previous study of dax and fischer (2018), which states that in rural areas where the population growth rate is high, there is high agricultural development and growth in other sectors of the economy such as tourism, education, medicine, and manufacturing operating in that area. there are some criteria for ensuring a high level of satisfaction from citizens, including a sound transportation system serving the travel needs of people; an electrical system for production and living needs; cultural and art activities; security and social order. however, some indicators of satisfaction from households do not report to be high, especially in phu nam 1 village. these include support for production and improvement in people's income; results of environmental pollution treatment; soliciting opinions of citizens when the government deploys construction projects to serve the needs of production and people; reforms in administrative policies and procedures as well as the service attitude of officials and public servants. this research particularly focuses on analyzing the development of the nrd program in vietnam. future research may cover a wider range with the comparisons between the developments of the nrd program in different provinces in vietnam. they could also focus on the cooperation between participations for sustainable development of rural in vietnam. the present study carries several theoretical and empirical implications. in strictly theoretical terms, this study contributes to the existing body of literature on agriculture studies, rural/urban studies, and in particular the study of rural development patterns. this study studies patterns of agricultural growth in detail and throws light on the influences of agricultural growth as categorized into further components i.e. development in agriculture, agriculture employment, agricultural import, and rural population growth on the rate of rural development. although, in the past, many researchers and academics have paid attention to the growth of agriculture in rural areas and its impact on quality of rural life, they have understood, conceptualized, and operationalized agricultural growth as a whole and do not delve any deeper into the different forms and manifestations of agricultural growth when analyzing rural development. in contrast, the current study examines multiple related factors for determining high agricultural development and, thereby, rural development. this study has great practical agbioforum, 21(3), 2019 | 55 dinh hong linhfirst author, nguyen thi thu cuc*, nguyen cong tiep, et al. — the impact of agricultural growth on the rural…. significance as it is an appropriate guideline for stakeholders in the government and rural development authorities on how to accelerate the rate of rural development in the short, medium, and long-term future. this study makes it clear that rural development can be accelerated by achieving higher agricultural growth and an increase in agricultural employment and agricultural import, as well as a steady rate of rural population growth. 6. conclusion and limitations the current study examines the development rate of rural areas in an emerging economy like vietnam, a lowermiddle-income country in southeast asia. this study particularly examines the role of agricultural development growth, agriculture employment, agricultural import, and rural population growth in the achievement of a higher rate of rural development. the study demonstrates that an increase in agricultural growth improves the rate of rural development. in rural areas where the agricultural growth rate is high, there is more fertile land; correspondingly, there is more cultivation and higher productivity of crops, care, and breeding of livestock. all this leads to an increase in the employment opportunities for the rural people and provides the foundational material for the development of different economic and social organizations within the rural area. the study further elaborates on the fact that the provision of high employment opportunities in agriculture increases the rural development rate. as agriculture provides many rural populations with employment, there is an increase in the living standard, which improves overall social well-being and enables people to make an investment in different economic sectors and commercial ventures. thus, the rise in employment in agriculture enhances rural development. the current study shows that the facility to import agricultural tools, seeds, technology, fertilizers, and antibiotics and agricultural products facilitates agriculture development and, thus, the development of rural areas and rural life. moreover, the study also shows that an increase in the population in the rural areas determines higher growth for the social, traditional, and economic sectors, and for this reason, it is important for residents of rural areas to participate, and benefit from, development projects and programs being implemented in rural areas. like many other works of literature, the current study is also exposed to certain limitations. future researchers and scholars are recommended to overcome these all limitations of research design and context. only agricultural growth in the form of development in agriculture, agriculture employment, agricultural import, and rural population growth has been analyzed in the current study as the drivers of rural development. it bears to note that there are, in fact, numerous other factors like government policies, economic conditions, tourism, cultural, and geographical factors that also have strong effects on the rate of rural development. however, unfortunately, all these factors have been largely ignored in the current study, because of which, the ensuing analysis of the essential factors determining rural development, can only have limited scope & validity. future scholars are recommended to pay attention to additional factors when analyzing variables affecting rural development. moreover, the current study examines the contribution of development in agriculture, agriculture employment, agricultural import, and rural population growth in terms of achievement of high rural development for one country – context i.e., vietnam. vietnam is a developing, lowermiddle-income country having certain geographical characteristics and a specific agriculture system. the study conducted in vietnam may not be valid for or generalizable to any other developing or developed countries. thus, future studies should aim analyze the agricultural system and rural development in both developing and developed countries. references agyei‐okyere, e., nketsia, w., opoku, m. p., torgbenu, e. l., alupo, b. a., & odame, l. 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(2019). the impact of green economy measures on rural employment: green jobs in farms. journal of cleaner production, 208, 541-551. doi: https://doi.org/10.1016/j.jclepro.2018.10.160 agbioforum, 23(2): 1-12. ©2021 agbioforum factors affecting intention to purchase organic agriculture products among vietnamese luong thu thuy faculty of economics, academy of finance, vietnam email: luongthuthuy@hvtc.edu.vn tran thi phuong diu faculty of economics, academy of finance, vietnam email: tranphuongdiu@hvtc.edu.vn nguyen dinh hoan faculty of economics, academy of finance, vietnam email: hoannd@hvtc.edu.vn vu viet ninh faculty of economics, academy of finance, vietnam email: vuvietninh@hvtc.edu.vn nguyen thi thuy nga faculty of economics, academy of finance, vietnam email: nguyenthithuynga@hvtc.edu.vn globally, customer intention to purchase has become the essential part of the product and organization’s success in the market. more recently, the idea has captured the attention of academic and policymakers alike. therefore, the current article analyses product quality features such as agreeableness, emotional stability conscientiousness, openness to experience and extroversion on the intention to purchase organic agricultural products in the context of vietnam. the study also analyses the mediating role of customer satisfaction between the association of product quality features and intention to purchase organic products in vietnam. the present study uses questionnaires to collect data pertaining to the health sector of vietnam. the current study employs the smart-pls to analyze the constructs and items’ reliability as well as the association among constructs. the results show that product quality features except extroversion have a positive and significant association with intention to purchase organic products in vietnam. the results also reveal that customer satisfaction significantly and positively mediates among the associations of product quality features and intention to purchase organic products in vietnam. this study is suitable for policymakers while formulating policies that may directly or indirectly affect customers’ intention to purchase organic agricultural products. key words: product quality features, agreeableness, emotional stability, conscientiousness, extroversion, organic products, openness to experience. 1. introduction the promotion of organic agriculture is a hot topic among researchers and academics in today’s era of unprecedented industrialization, technological progress and increased chemical usage. organic agriculture is a production system that protects the quality of soil, environmental quality, and the health of living beings. this system is dependent on the ecological processes, biodiversity, and the naturally occurring cycles aligning with geographical conditions instead of man-made inputs that have potentially negative impacts. organic agriculture includes traditions, innovativeness, creativity, and scientific ways to benefit the shared environment as well as to promote positive social relations and quality living standards (ferdous et al., 2021). organic agriculture is quite different from traditional agriculture, where synthetic chemical substances like fertilizers and insecticides are used with a view to maximizing the production (nikol et al., 2021). as in other economic sectors, it is the intention of consumers to make purchases for the products which ultimately determine the economic and, thus, the operational performance of the firm. purchase represents the willingness of the consumers to buy – a willingness that is shaped by the thinking, emotions and buying power of consumers (yormirzoev et al., 2021). the perceived product personality is a business concept that defines the company’s brand image among consumers. product personality is a set of personality characteristics that people use to describe a particular product. product personality traits can influence the consumers’ interaction with a product and how it is reviewed or evaluated. accordingly, it is likely to design products with the help of predetermined personality traits (peschel et al., 2019). our study analyzes perceived product personality traits and their influences on consumers’ intention to purchase organic agriculture products (ipoap) for the economy of vietnam. vietnam is a lower-middle-income economy. it is a mixed socialist-oriented market economy, and currently ranks as the 37th largest economy according to the nominal gross domestic product, which accounts for $369.5 billion for 2021 (ngo et al., 2021). throughout the past few years, the country has been making rapid progress in the health sectors, and in this regard, a lot of development has been made in the organic product sector. the vietnamese market for health and wellness products was valued at $5 billion in 2019, grew at a compound annual growth rate of nearly 9% during the previous five years (zhao et al., 2021). in 2019, with retail sales of $130 million, organic food and beverages represented a modest percentage of the health and wellness business in vietnam. because of a rise in the number of customers with increasing disposable incomes, increased tastes for highvalue and high-quality products, and higher demand that increases over local supply, vietnam has experienced a remarkable marketing growth for organic food and beverage products (bui et al., 2021). although organic food and beverage have previously been considered a niche sector in this country due to the high price of goods, mailto:luongthuthuy@hvtc.edu.vn mailto:tranphuongdiu@hvtc.edu.vn mailto:hoannd@hvtc.edu.vn mailto:vuvietninh@hvtc.edu.vn mailto:nguyenthithuynga@hvtc.edu.vn agbioforum, 23(2), 2021 | 2 thuy, diu, hoan, ninh and nga. — factors affecting intention to purchase organic agriculture products among vietnamese demand for high-quality, safe products has increased as the country's economy expands and living standards improve. despite challenges in the wake of the covid-19 pandemic, and the ensuing economic slowdown in 2020, vietnam quadrupled its imports of organic food and beverage goods from the united states compared to the same period last year (van tung et al., 2021). some statistics related to the consumption share of organic product market is given as under in figure 1. figure 1: consumption share of vietnam organic market although the vietnamese government and some public entities have started to pay attention to organic agriculture development, there are challenges for the industry, and a major lack of awareness in this regard. thus, the enterprises dealing in organic agriculture products are still unable to make due progress. for this reason, the current study seeks to encourage the production and use of organic agriculture products. the aim of our study is to explore the influences of five perceived product personality traits and their impacts on consumers’ ipoap. the article analyses the mediating impacts of customer satisfaction between perceived product personality traits and consumers’ ipoap. the current study is a gap study on account of its contribution to the literature. prior to this study, a few studies have addressed the influences of perceived product personality traits on consumers’ ipoap. this study is an initiative to show the role and impact of perceived product personality traits on consumers’ ipoap. it is also a pioneer study of its kind to analyse the influences of analyzing five perceived product personality traits on consumers’ ipoap in the context of vietnam. the use of customer satisfaction is a mediator between five perceived product personality traits and consumers’ ipoap is a contribution to literature. the structure of the paper is designed as follows. the second part of the paper analyzes the nexus among perceived product personality traits and consumers’ ipoap on the basis of an in-depth literature review. in the third part, that is, the research design, the process to collect data, and analytical techniques are described. this is followed by a section highlighting the key implications of the study as well as the study conclusions. towards the end, the author puts forth a number of suggestions to direct future research works on the subject. 2. literature review organic agricultural products are produced without using chemicals, synthetic processes, and pesticides with an intention to protect the quality of soil, environmental quality, and health of living beings (h. v. nguyen et al., 2021). the marketing of organic products is dependent on consumers’ satisfaction levels and their intention to purchase the products. the consumers’ purchase intention is formed by their perception of the products quality and other features—the perceived product's personality traits, which are designed on the basis of predetermined consumers’ perceptions (d. t. nguyen et al., 2021). the role of perceived product personality traits in consumers’ ipoap has been a topic of several past research studies. some of these have been cited below. products agreeableness is one of the perceived product personality traits which determines a consumers’ intention (dangi to purchase a product (prentice et al., 2019). product agreeableness is the tendency or inclination of a product to show care and kindness towards consumers or the public. organic agriculture products which have no chemical effects, or hazardous influences, protect the health of the consumers who use them, have more agreeableness, that is, they generate feelings ofempathy and care for others and can therefore, motivate consumers agbioforum, 23(2), 2021 | 3 thuy, diu, hoan, ninh and nga. — factors affecting intention to purchase organic agriculture products among vietnamese to make purchases et al., 2020). a research study by küster et al. (2017) investigated the perceived product agreeableness and physical appearance and their influence on individual attitudes and behaviors (purchase intention). the authors analyzed the relationship among the aforementioned factors using a sample of 300 young consumers. pls technique was applied for analysis. the study reveals that when consumers want low-fat products and organic products that have the ability to reduce or maintain fat, they prefer to purchase these products. thus, we postulate the following hypothesis: h1: perceived product agreeableness has a positive role on the intention to purchase. every product is basically invented or produced with an objective to perform a particular task. consequently, so it is designed and sold in pursuance of this central objective. this is known as products’ conscientiousness, and it affects the consumers’ intention to purchase the concerned product and retain it with the concerned company. the same holds true in the case of dealing with organic products (farias et al., 2019). though the organic products are taken as clean and are preferred for this reason, if they do not fulfil the main objective for which they are being purchased, it adversely affects the consumers’ intention to make purchases (tong et al., 2018). chaturvedi et al. (2020), conducted a research survey with 640 respondents to explore the big five personality traits in products as constructs of organic food purchase intention in the emerging market of india. the results of analysis by cfa and sem test methods show that the products’ personality trait conscientious has a positive association with consumers’ ipoap. therefore, we postulate the following hypothesis on the basis of literary reviews: h2: perceived product conscientiousness has a positive impact on intention to purchase. according to the opinion of saraiva et al. (2021), the sustainability of the features of the product like the ability to meet the primary need, accuracy, reliability, care for users, and alignment to consumers’ emotions and values is needed to ensure sustainability in purchase intention. against changing circumstances in organization climate, product design, change of technology, legal and financial issues, and economic conditions, products’ ability to align with consumers’ emotions, values, and goals must not be changed. a study was conducted by wang et al. (2019), which analyzes factors affecting organic food purchase intention in developing countries. three hundred and fifty responses were collected from kenya, and 331 responses were collected from tanzania. for validation, confirmatory factor analysis was employed, and with the help of structural equation modelling, the results were analyzed. the study concluded for organic products which have emotional sustainability for the product consumers, there is a high purchase intention of consumers. hence: h3: perceived product emotional stability has a positive impact on intention to purchase. the study presented by sagheb et al. (2020), analyzes 13 factors affecting purchasing intention, including five product personality traits, within the context of iran. questionnaires were distributed among 384 foreign food product consumers in iran after applying systematic sampling techniques. they identify the nexus among the understudy constructs. the study implies that when the products are extrovert in meeting the requirements of the products without imparting any negative impact on the health and their surroundings, the consumers show a willingness to keep on buying the same products. a study conducted by de morais watanabe et al. (2020) analyzes the association between perceived products personality traits and consumers’ ipoaps. the study examines products extroversion as a product’s ability to be energetic, agile, and responsive to customers’ demands in performing their function. customers want good and fast-affecting products. therefore, when the products are extrovert, they are more inclined to buy. thus, we can hypothesize: h4: perceived product extroversion has a positive impact on intention to purchase. product openness to experience is another equally significant dimension of perceived product personality. it plays a significant role in determining the consumer's buying attention for products. organic products which directly and indirectly affect environmental quality and the health of living beings must have the quality of being open to experience. the products’ openness to experience entails the quality to be flexible or changeable according to the changing requirements of customers or changing market trends. when organic companies have a brand image whereby the products are seen as flexible and changeable as required, consumers prefer to be loyal to the company (lu et al., 2018). a study was conducted by puska et al. (2018) to investigate the impact of perceived products personality characteristics on consumers’ buying intention for the organic food industry. this study concluded that consumers’ attitude towards the company, its buying attention, and their loyalty to the brand/product improves when products have openness to experience. hence: h5: perceived product openness to experience has a positive impact on intention to purchase organic products. according to the arguments of klein et al. (2019), product perceived agreeableness affects consumers satisfaction and their purchase behaviors. as organic products are considered eco-friendly products and therefore have the ability to agree with the emotions and attitudes of people who are health-conscious, environmentally aware, and caring for others, and for this reason, customers feel satisfied while thinking about using concerned products. the level of their satisfaction towards the organic products motivates them to make large purchases. a study conducted by ali et al. (2020) examines the relationship among halal brand perceived quality, brand satisfaction, customer trust, and customer loyalty within a holistic framework. the cross-sectional data were collected from agbioforum, 23(2), 2021 | 4 thuy, diu, hoan, ninh and nga. — factors affecting intention to purchase organic agriculture products among vietnamese 481 chinese muslims studying at nine universities located in 3 cities of china with the help of personal and online surveys. the study demonstrated that organic products which are free from such chemicals or substances which is not considered halal are more likely not to satisfy the members of muslim society or some other group and thus, have a negative impact on consumer's intention to purchase. hence, it can be hypothesized: h6: customers’ satisfaction mediates among the product agreeableness and intention to purchase. carzedda et al. (2018), presents their arguments for the claims that products’ personality trait known as conscientiousness have a significant impact on customers attitude towards products (customer satisfaction) and purchase intention. in their opinion, mostly organic products are purchased to fulfil specific needs. economic factors and social and environmental features of the products have secondary importance while making purchase decisions. therefore, the products tendency to meet their primary functions determine the consumer's satisfaction towards the product and their purchase intention. in a literary article, persaud et al. (2017) analyze the factors affecting behavior vis-a-vis purchasing organic products. the study collected data from 988 canadian consumers of organic products through an online survey, and structural equation modelling was applied to test the relationship. the study results show that the conscientiousness of the products to undertake their primary functions along with other quality features improves the consumers’ satisfaction level towards the products and high satisfaction improves their purchase intention. for this reason, it is hypothesized that: h7: customers’ satisfaction mediates among product conscientiousness and intention to purchase. in literary research conducted by asif et al. (2018), on analysis of determinants affecting organic food purchasing intentions, the researcher analyze the products perceived personality trait, emotional stability, the customer's satisfaction, and purchase intention. data were taken from 271 respondents from pakistan, 245 respondents from turkey and 220 respondents from iran. for data analysis, the structural equation modelling was applied. the study highlights that the products which have emotional stability and do not contradict the consumers’ emotions, values, and desires regarding the products; the consumers feel satisfied that they are getting products according to wish and will have the same quality in future, this satisfaction and trust improves the consumers’ purchase intention. a study by ardizzone et al. (2019) examines shows even if circumstances change as long as the product continues to execute its functions at a high level, consumers believe they are not wasting their money and are more likely to acquire the product. on the basis of authors’ views, it can be hypothesized that: h8: customers’ satisfaction mediates between the product emotion stability and intention to purchase. empirical research by sun et al. (2018), identifies and explores the relationship between the products personality traits, consumers attitudes towards green buying, and intention to purchase green products. for data collection, a survey questionnaire technique was used, and chinese consumers were targeted as the respondents. data were examined with spss and smart pls 2.20. the study examines green (organic) products’ extroversion and its impact on the market. the study concluded that when the products are energetic in performing their functions, responsive to the consumers’ needs, and have the ability to gain popularity among consumers because of their green features, they are able to ensure customer trust and satisfaction. the emotional and cognitive satisfaction of consumers turns into their willingness to purchase green (organic) products. in literary research, samant et al. (2019) present their arguments regarding the association between products extroversion, consumers’ satisfaction towards organic products and the consumers’ intention to purchase. this study concludes that the existence of personality traits like extroversion in organic products stirs consumers’ satisfaction, confidence, and purchase intention. based on the above discussion, we can postulate the following: h9: customers’ satisfaction mediates between the product extroversion and intention to purchase. the customers’ satisfaction level denotes their positive thinking towards the quality of the product or services provided as well as the price factor. the intention of the consumers to buy products or stay with the same company is dependent on their thinking towards the products and company conduct. in the modern world, innovation and green improvement is a necessary element in marketing. the products which are flexible and open to experience are more innovative. the satisfaction of the consumers in regards to product quality improves if it is shown that products are able to change with changes in market trends. this increased satisfaction motivates consumers to make purchases. the study conducted by yu et al. (2021), organic food image and customers developing behavior is related to consumer trust and buying intention. two hundred sixty-nine customers of organic food enterprises in the southwest of china were selected as samples for analysis. the study results show that when organic products are open to experience, consumers experience high level of satisfaction and are more willing to make purchases. thus, it can be hypothesized: h10: customers’ satisfaction mediates among the product openness to experience and intention to purchase. 3. research methodology the researchers investigate the relationship between product quality features and ipoap while investigating the mediating role of customer satisfaction among the nexus of product quality features and ipoap in vietnam. the present study has adopted questionnaires to collect data from the health sector of vietnam. the employees who are monitoring the purchaser intention towards the healthy agbioforum, 23(2), 2021 | 5 thuy, diu, hoan, ninh and nga. — factors affecting intention to purchase organic agriculture products among vietnamese products of the health department are the respondents of the study. purposive sampling was used to select the respondents, and physical visits were used to distribute the questionnaires. a total of 1125 surveys were distributed, but after ten days, only 758 surveys have received which indicates a 67.37 per cent response rate. the current study employed the smart-pls to analyze the constructs and item’s reliability and association among constructs. it provides effective results when the “large sample size” and “complex framework” are used by the researchers (hair et al., 2019) as the current study has used a large sample size and complex framework. in addition, five predictors were used by the current study that is, as agreeableness (ag) with five items, conscientiousness (cn) with eight items, extroversion (ex) with three items, emotional stability (es) with twelve items and open to experience (oe) with four items that are adopted from the study of guido et al. (2010). in addition, the current study also used customer satisfaction (cs) as the mediating variable with six items and intention to purchase organic agricultural products (ipoap) with ten items. these variables and their linkages are shown in figure 2. figure 2: theoretical model 4. research findings the findings section highlighted the correction between the items of the selected constructs known as convergent validity. the figures highlighted that composite reliability (cr) and alpha values are bigger than 0.70, and results also reveal that average variance extracted (ave) along with loadings values are also higher than 0.50. these results indicate that convergent validity is a valid and high association between items. table 1 shows these results. the findings section has highlighted the correction between the selected constructs which is known as discriminant validity. “fornell larcker” with “crossloading” were used to test the nexus among predictors. the figures highlighted that the values that indicated the association with construct itself are not lower than the values that indicated the nexus with other variables. these results indicated that discriminant validity denotes a valid and low association between constructs. table 2 and table 3 depict these results. product perceived quality agreeableness extroversion intention to purchase organic agriculture products emotional stability conscientiousness openness to experience customer satisfaction agbioforum, 23(2), 2021 | 6 thuy, diu, hoan, ninh and nga. — factors affecting intention to purchase organic agriculture products among vietnamese table 1: convergent validity constructs items loadings alpha cr ave agreeableness ag1 0.908 0.913 0.939 0.793 ag2 0.851 ag3 0.893 ag5 0.910 conscientiousness cn1 0.741 0.881 0.906 0.548 cn2 0.807 cn3 0.785 cn4 0.751 cn5 0.622 cn6 0.771 cn7 0.771 cn8 0.655 customer satisfaction cs1 0.797 0.860 0.896 0.590 cs2 0.833 cs3 0.735 cs4 0.749 cs5 0.807 cs6 0.677 emotional stability es1 0.731 0.907 0.922 0.519 es11 0.686 es12 0.700 es2 0.731 es3 0.629 es4 0.724 es5 0.775 es6 0.772 es7 0.733 es8 0.722 es9 0.708 extroversion ex1 0.641 0.746 0.811 0.592 ex2 0.849 ex3 0.803 intention to purchase organic agriculture products ipoap1 0.685 0.893 0.913 0.539 ipoap10 0.732 ipoap2 0.722 ipoap4 0.716 ipoap5 0.756 ipoap6 0.753 ipoap7 0.756 ipoap8 0.720 ipoap9 0.766 openness to experience oe1 0.860 0.775 0.820 0.604 oe3 0.747 oe4 0.717 table 2: fornell larcker ag cn cs es ex ipoap oe ag 0.891 cn 0.325 0.741 cs 0.186 0.495 0.768 es 0.349 0.650 0.647 0.720 ex 0.084 0.108 0.310 0.256 0.769 ipoap 0.341 0.671 0.654 0.711 0.252 0.734 oe 0.230 0.463 0.501 0.533 0.274 0.624 0.777 in addition, the latest approach such as heterotrait monotrait (htmt) ratio was also used to test for discriminant validity. the figures highlighted that the values are lower than 0.85. these results indicate that discriminant validity is in favor as it shows low association between constructs. table 4 shows these results. the structural modelling shows the direct association first, and the results indicate that product quality features except extroversion have a positive and significant association with ipoap in vietnam and therefore, we accept h1, h2, h3 and h5. however, the results also indicated that extroversion has an insignificant association with ipoap in vietnam and therefore, the study rejects h4. table 5 agbioforum, 23(2), 2021 | 7 thuy, diu, hoan, ninh and nga. — factors affecting intention to purchase organic agriculture products among vietnamese shows these results. table 3: cross-loadings ag cn cs es ex ipoap oe ag1 0.908 0.307 0.163 0.309 0.078 0.296 0.196 ag2 0.851 0.267 0.130 0.326 0.042 0.272 0.161 ag3 0.893 0.289 0.177 0.304 0.077 0.329 0.251 ag5 0.910 0.294 0.187 0.309 0.099 0.313 0.203 cn1 0.239 0.741 0.331 0.433 0.035 0.456 0.298 cn2 0.266 0.807 0.404 0.565 0.085 0.570 0.397 cn3 0.296 0.785 0.376 0.486 0.113 0.497 0.291 cn4 0.306 0.751 0.357 0.441 0.084 0.494 0.310 cn5 0.162 0.622 0.365 0.476 0.065 0.500 0.322 cn6 0.226 0.771 0.333 0.459 0.036 0.479 0.382 cn7 0.255 0.771 0.377 0.464 0.064 0.491 0.356 cn8 0.167 0.655 0.375 0.503 0.150 0.467 0.375 cs1 0.156 0.438 0.797 0.591 0.238 0.578 0.375 cs2 0.140 0.369 0.833 0.446 0.296 0.441 0.384 cs3 0.154 0.414 0.735 0.439 0.199 0.476 0.390 cs4 0.147 0.356 0.749 0.534 0.223 0.538 0.366 cs5 0.119 0.325 0.807 0.412 0.253 0.405 0.351 cs6 0.133 0.357 0.677 0.509 0.217 0.526 0.427 es1 0.195 0.499 0.575 0.731 0.197 0.655 0.395 es11 0.323 0.456 0.371 0.686 0.139 0.503 0.340 es12 0.301 0.462 0.405 0.700 0.107 0.522 0.294 es2 0.258 0.561 0.436 0.731 0.223 0.659 0.409 es3 0.168 0.372 0.472 0.629 0.231 0.516 0.399 es4 0.240 0.453 0.540 0.724 0.203 0.572 0.419 es5 0.272 0.480 0.441 0.775 0.239 0.632 0.342 es6 0.224 0.458 0.524 0.772 0.199 0.636 0.482 es7 0.247 0.482 0.544 0.733 0.194 0.634 0.448 es8 0.245 0.411 0.367 0.722 0.169 0.512 0.315 es9 0.332 0.502 0.374 0.708 0.097 0.527 0.332 ex1 0.094 0.143 0.190 0.176 0.641 0.218 0.195 ex2 0.048 0.004 0.281 0.233 0.849 0.200 0.242 ex3 0.057 0.119 0.235 0.176 0.803 0.162 0.188 ipoap1 0.210 0.422 0.502 0.500 0.216 0.685 0.364 ipoap10 0.262 0.514 0.495 0.628 0.184 0.732 0.564 ipoap2 0.287 0.498 0.487 0.618 0.207 0.722 0.623 ipoap4 0.230 0.483 0.474 0.587 0.185 0.716 0.472 ipoap5 0.268 0.521 0.446 0.595 0.145 0.756 0.554 ipoap6 0.205 0.542 0.500 0.598 0.188 0.753 0.411 ipoap7 0.244 0.538 0.497 0.591 0.213 0.756 0.393 ipoap8 0.262 0.450 0.475 0.597 0.185 0.720 0.333 ipoap9 0.278 0.453 0.448 0.634 0.144 0.766 0.366 oe1 0.288 0.422 0.486 0.498 0.220 0.592 0.860 oe3 0.132 0.289 0.323 0.307 0.265 0.392 0.747 oe4 0.077 0.352 0.331 0.411 0.162 0.440 0.717 table 4: heterotrait monotrait ratio ag cn cs es ex ipoap oe ag cn 0.362 cs 0.206 0.563 es 0.390 0.723 0.711 ex 0.111 0.178 0.413 0.328 ipoap 0.375 0.753 0.735 0.791 0.333 oe 0.268 0.589 0.636 0.658 0.417 0.776 the structural modelling shows the direct association first, and the results indicate that product quality features except extroversion have a positive and significant association with ipoap in vietnam and therefore, we accept h1, h2, h3 and h5. however, the results also indicated that extroversion has an insignificant association with ipoap in vietnam and therefore, the study rejects h4. table 5 shows these results. agbioforum, 23(2), 2021 | 8 thuy, diu, hoan, ninh and nga. — factors affecting intention to purchase organic agriculture products among vietnamese figure 3: measurement model assessment table 5: direct path relationships beta s.d. t statistics p values l.l. u.l. ag -> ipoap 0.042 0.019 2.243 0.027 0.005 0.076 cn -> ipoap 0.183 0.029 6.351 0.000 0.136 0.231 cs -> ipoap 0.145 0.030 4.845 0.000 0.086 0.193 es -> ipoap 0.474 0.029 16.378 0.000 0.417 0.533 ex -> ipoap 0.006 0.020 0.309 0.758 -0.035 0.039 oe -> ipoap 0.203 0.032 6.435 0.000 0.143 0.257 the structural modelling also shows the indirect association and the results reveal that customer satisfaction significantly and positively mediates among the associations of product quality features and ipoap in vietnam and therefore, the study accepts h6 to h10. table 6 shows these results. table 6: a mediation analysis relationships beta s.d. t statistics p values l.l. u.l. ag -> cs -> ipoap 0.010 0.003 2.758 0.007 0.016 0.093 oe -> cs -> ipoap 0.026 0.008 3.400 0.001 0.013 0.040 es -> cs -> ipoap 0.067 0.017 4.024 0.000 0.036 0.099 cn -> cs -> ipoap 0.017 0.006 2.929 0.004 0.007 0.030 ex -> cs -> ipoap 0.020 0.006 3.383 0.001 0.010 0.031 agbioforum, 23(2), 2021 | 9 thuy, diu, hoan, ninh and nga. — factors affecting intention to purchase organic agriculture products among vietnamese figure 4: structural model assessment 5. discussion and implications the results point to a positive association between agreeableness, the dimension of perceived product personality and ipoap. these results are supported by the past study of prentice et al. (2019) which shows that when products have the ability to satisfy the emotions of consumers and are able to care for their surroundings and health, ipoap increases. the results indicate the existence of a positive association between conscientiousness, the dimension of perceived product personality and ipoap. these results are supported by the past study of konuk (2018), according to which, if organic products like organic food, organic medicine, and energy products from organic agriculture can fulfil the main objective, the consumers’ intention to purchase these products increases. the results show that there is a positive association between emotional stability, the dimension of perceived product personality and ipoap. these results are in line with the past study of saleki et al. (2019), where the results similarly show that when consumers have a perception of products’ emotional stability, they feel inclined to purchase. the current results show that there is a positive but insignificant association between extroversion and ipoap. these results agree with the study of ventre et al. (2020), which implies that the highly exported organic products sometimes not giving positive and fast results in developing consumers purchase intention. the results revealed that there is a positive association between perceived product personality dimension, openness to experience and ipoap. these results match with the results of a study by hansen et al. (2018), which focuses on the quality of the product of openness to experience for attracting high purchase intention in the case of organic products. the study results have also indicated that customer satisfaction is a mediator between product agreeableness and ipoap. these results are in line with the past study of ghali (2020), which suggests that products’ ability or tendency to empathize and care for users and others enhances consumers’ satisfaction and motivates them to make a purchase. the results indicate that customer satisfaction mediates between product conscientiousness and ipoap. these results match with the study of le‐anh et al. (2020), which shows that the fulfilment of the main objective of the products satisfies the consumers, which results in enhanced purchase intention. the results indicate that customer satisfaction mediates between product emotional stability and ipoap. these results are in line with the past study of carfora et al. (2019), which shows that even in the face of changing circumstances, if the product still performs its functions with the same potential, consumers feel they are not wasting their money and therefore, tend to purchase the products. it has also been indicated by study findings that customer satisfaction is a mediator between product extroversion and ipoap. these results are in line with the past study of aschemann-witzel et al. (2019). the results of this study also show that organic product extroversion has a positive impact on customer satisfaction, and the customers’ satisfaction shapes their intention to purchase. the results indicate that agbioforum, 23(2), 2021 | 10 thuy, diu, hoan, ninh and nga. — factors affecting intention to purchase organic agriculture products among vietnamese customer satisfaction mediates between product agreeableness and ipoap. these results are supported by the past study of barari et al. (2021), who argue that customer satisfaction is improved by the flexibility of products and that it leads to an increase in consumer intention to purchase these products. the current study has both theoretical and empirical implications. this study makes a significant contribution to the literature. the study demonstrates the significance of perceived products personality in terms of marketing and developing customers’ loyalty. the study analyzes five perceived product personality traits and their influences on consumers’ ipoap. this is one of the initial struggles to describe the mediating influences of customer satisfaction on the association between the five perceived product personality traits to purchase organic agriculture products. for these reasons, this study is a valuable addition to existing literature. the current study also has great significance in emerging economies like vietnam. this study elaborates on how to promote the enterprises dealing in organic agriculture products enhancing the consumer intention. this study guides the management in the organic industry as well as other industries in general on how they should design their policies to retain existing customers and attract new ones towards their products. this study is suitable for policymakers while they are formulating policies related to the ipoap. the study suggests that with the effective implementation of perceived product personality traits, the consumers’ ipoap can be increased. 6. conclusion and limitations the current study was conducted to explore how perceived product personality traits, determine consumers’ ipoap. it was also conducted with a view to analyze the influences of five perceived product personality traits on consumers’ ipoap. the study applied the quantitative research method. it did so by acquiring data pertaining to five perceived product personality traits and their influences on consumers’ ipoap from vietnam. the results indicated that when items can fulfil consumers' emotions while also caring for the environment and their health, their desire to buy organic agriculture products grows. the results showed that if organic products from organic agriculture can achieve the main goal, consumers' willingness to buy them increases. the results indicated that with the development of emotional stability in organic agricultural products, consumers prefer to purchase the same products. the results showed that organic agriculture products which have quick response-ability in performing their functions while serving the consumers, can catch customers’ intentions. similarly, the quality of the product to be open to new experiences is useful for attracting high purchase intention for organic products on the part of consumers. the study results showed that the effective implementation of perceived product personality traits improves customers’ satisfaction which, in turn, brings about a remarkable increase in the consumers’ ipoap. despite its theoretical contributions, there are a number of limitations of the current study. these limitations must be removed for a more comprehensive, general, and valid study in the future. first of all, the study analyzes only the influences of product personality traits on consumers’ ipoap. thus, the study is not comprehensive, and the authors in future must analyze the additional possible factors which can affect consumers’ ipoap. secondly, this study has selected vietnam as a country to examine influences of five perceived product personality traits on consumers’ ipoap. therefore, findings from this study may not be valid in other developing or developed countries because of the change in economic conditions. for a general study, the future must analyze both developing and developing economies. references ali, a., sherwani, m., ali, a., ali, z., & sherwani, m. 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panprommin et al., 2019). the mean minimum and maximum temperatures are 10.8 °c in the cool season and 39.5 °c in the hot season. kwan phayao is the largest seminatural freshwater resource in northern thailand and the fourth largest in the country stretching over an area of 6,335 km2 (butboonchoo et al., 2017; laenoi et al., 2015) the terrain is characterized by high mountains interspersed with plains. there is a difference in elevation above sea level (hu et al., 2016). changing climates at different times of the year cause each area to grow different plant species. this is why northern thailand has high biodiversity (panprommin et al., 2019; pattanavibool et al., 2002). the plant species in these natural resources are valuable to conserve (inta et al., 2013; limnirankul et al., 2015). there are many areas that explorers are unable to access. some of the existing plant species went extinct before further exploration (pérez-ortega et al., 2017; senyolo et al., 2018). some species have been utilized for the daily life of human beings. the number of plants in agriculture has changed due to the development of the country. local plant surveys can provide an introduction to local flora and fauna (inta et al., 2008; junsongduang et al., 2014). surveying and collecting data on the utilization of local botany in communities around kwan phayao can lead to conservation and restoration of ethnobotanicals in food and herbs. this can lead to further development and their sustainable use in the future. 2. materials and methods 2.1 study area and site collection samples have been collected from five villages in and around kwan phayao i.e., ban mae sai market, ban bua market, ban toon market, ban sang market, and ban sun bua bok market. (see figure 1). figure 1. study area in communities around kwan phayao, phayao district, phayao province. 2.2 key informant interview (kii) interviewed 25 local folk medicine experts with experience in local plants and herbs. mailto:sitthisak.pi@up.ac.th https://orcid.org/0000-0002-8027-8445 mailto:thatchakorn_nuni@hotmail.com https://orcid.org/0000-0002-2284-2562 mailto:warachm@gmail.com https://orcid.org/0000-0002-8027-8445 agbioforum, 23(1), 2021 | 66 pinmongkhonkul, khamkhunmuang and madhayamapurush. — ethnobotanical study and plant dimension classification in kwan phayao community areas, phayao province, thailand 2.3 survey and collection data the author collected survey data and used questionaries to perform interviews. the study particularly notes botanical characteristics, local name, plant utilization to food and herbs, and route of administration. to this end, 3 plant specimens per species are collected. the study seeks to collect and study samples with the most complete specimens including leaves, flowers, fruit, non-disease, or insect bite. it bears to note that each group of plants has different sampling methods. 2.4 verification of the identity of plant specimens this study investigates plant species and describes their botanical features. is also seeks to verify the validity of scientific names and local names and identified plants in various aspects including methods of application and plant parts used. the study searches for information on the basis of expert inquiries. to this end, the author interviews a folk healer and compares plant specimens and plants in hibernation at queen sirikit botanical garden, mae ram sub-district, mae rim district, chiang mai province. databases have been obtained from the botanical garden organization plants as well as books about local vegetables, e.g., lanna traditional herbal book, and northern local vegetables. 2.5 statistical analysis this study seeks to analyze data on the importance of use or cultural significance (ci). this is a value that calculates plant utilization in each area against the number of data user’s indicative of use. 𝐶𝐼 = ∑ 𝑈𝑅𝑖 𝑁 𝑖=𝑁𝑈 𝑖=1 3. results and discussions 3.1 plant utilization data plant utilization from plants in the community is concentrated around kwan phayao including in community market areas around kwan phayao. these accounted for five markets; ban mai sai market, ban bua market, ban toon market, ban sang market, and ban san bua bok market. ethnobotany utilization questionnaires were conducted with 25 villagers who utilized plants spannin across 36 families, 78 genera, and 99 species (table 1). the most common family is fabaceae (legumes family) consisting of 12 species (12.12%) followed by solanaceae (nightshade), cucurbitaceae (cucurbits family), and euphorbiaceae (spurges family). each family consists of seven species (7.07%). the plants are categorized according to habits as annual plants accounting for 46 species (46.5%), climbing plants accounting for 19 species (19.2%), shrubs accounting for 18 species (18.2%), perennial plants accounting for 12 species (12.1%), scandent plants accounting for 3 species (3.03%), and one fern (1.01%) (see figure 2). the plants have been categorized according to utilization in two ways: medicinal plants, accounting for 99 species, and edible plants which are used for food and account for 86 species. the plant parts most common used are leaves, accounting for 72 species (20.45%). this is followed by root accounting for 56 species (15.91%), shoot apex accounting for 47 species (13.4%), fruits accounting for 39 species (11.08%), flowers accounting for 37 species (10.5%), stems accounting for 33 species (9.38%), the entire plant accounting for 24 species (6.82%), seeds accounting for 22 species (6.25%), shells accounting for seven species (1.99%), and finally bulbs, rhizomes, and others accounting for five species (1.42%) (see figure 3). figure 2. plant types. figure 3. plant parts based on primary utilization. 46.50% 19.20% 18.20% 12.10% 3.03% 1.01% annual climbing shrubs perennial scandent fern 21% 16% 13%11% 11% 9% 7% 6% 2% 2% 1% 1% leaves root shoot apex fruits flowers stems entire seeds shells bulbs rhizome others agbioforum, 23(1), 2021 | 67 pinmongkhonkul, khamkhunmuang and madhayamapurush. — ethnobotanical study and plant dimension classification in kwan phayao community areas, phayao province, thailand table 1. number of species and family of plants utilized no. family species % 1 fabaceae 12 12.12 2 solanaceae 7 7.07 3 cucurbitaceae 7 7.07 4 euphorbiaceae 7 7.07 5 lamiaceae 5 5.05 6 asteraceae 5 5.05 7 amaranthaceae 5 5.05 8 apiaceae 4 4.04 9 convolvulaceae 4 4.04 10 piperaceae 4 4.04 11 acanthaceae 4 4.04 12 zingiberaceae 3 3.03 13 brassicaceae 3 3.03 14 rutaceae 3 3.03 15 apocynaceae 2 2.02 16 phyllanthaceae 2 2.02 17 molluginaceae 2 2.02 18 poaceae 2 2.02 19 cyperaceae 1 1.01 20 meliaceae 1 1.01 21 oleaceae 1 1.01 22 oxalidaceae 1 1.01 23 rubiaceae 1 1.01 table 2. number of species and family of plants utilized (cont.) no. family species % 24 pedaliaceae 1 1.01 25 plumbaginaceae 1 1.01 26 malvaceae 1 1.01 27 plantaginaceae 1 1.01 28 liliaceae 1 1.01 29 araceae 1 1.01 30 menispermaceae 1 1.01 31 athyriaceae 1 1.01 32 saururaceae 1 1.01 33 basellaceae 1 1.01 34 polygonaceae 1 1.01 35 amaryllidaceae 1 1.01 36 caricaceae 1 1.01 total 36 99 100.00 3.2 local plants utilization 3.2.1 studying and categorizing plants with tourism potentials beauty and natural dimensions tagetes erecta l. is a species of the family asteraceae and more commonly known in english as "african marigold" and a local name, "kham poo joo (chiang mai)". they tend to be weeds in cultivation. the shoot tip is used as a vegetable and is eaten with chili sauces. their fresh flowers can be put in an omelet or coated with a batter and deep fried. for medicinal utilization, the entire plant is used as carminative (medicine for stomach pain). the leaf tastes cool, luscious and has a strong smell. it can be applied to elcosis. squeezing juice from the leaf can be done to create a drink to relieve earache. the flower can be used to cure hemorrhoids. marigolds can be used as a blood-purifying medicine, to cure eye pain, as a carminative, and as a mucomyst. it can cure dizziness, whooping cough, mastitis, mumps, and bronchitis. this plant is a tourist attraction. propagation of the wild type is seen in garden arrangements, farms, and marigold fields; it can grow in every soil condition. healers and merchants from ten local regions of morelos state recommend t. erecta flowers as an infusion or as a tincture for several culture-bound syndromes associated with cns, among others. anxiolytic and sedative-like activities of the t. erecta aqueous and organic polar extracts are corroborated in these models and linked to a participation of rutin (laosinwattana et al., 2018; pérez-ortega et al., 2017). basella rubra l. scientific name (phakplang-local name) is family basellaceae with the common english name basella rubra l. utilized parts are shoot tips, leaves, and flowers. shoot tips and flowers are parboiled and dipped with chili sauces or put into a sour soup made of tamarind paste as well as a curry called kaeng kae. it can cure abscess toxicity, urine retention, and constipation with its antipyretic activity. northern midwives use fresh leaves by crushing them finely and then extract them to get mucilage. this mucilage is applied to the vagina to facilitate childbirth. basella rubra l. is an important green leafy vegetable vine and is known for its health benefits in traditional medicine. light is a basic physical factor essential for the development and bioactive secondary metabolite production in vitro callus cultures. the present study researches into the impact of different photoperiods on biomass, bioactive compounds, and antioxidant activity in callus cultures of b. rubra (kumar et al., 2020). 3.2.2 culture and belief dimension acacia concinna is locally known as som poi and belongs to the fabaceae family. acacia concinna is used to manufacture products related to religious beliefs and rituals in the form of souvenirs. local believe that houses should have acacia concinna to prevent misfortune. they also believe that when pods are soaked in the water, the water becomes sacred and keeps evil away. the most cited plants as known, used and found were acacia concinna, clitoria ternetea, oryza sativa and citrus hystrix. biometric analyses advise that knowledge of detergent plant utilisation is well preserved at all age ranges and does not vary with gender (poomanee et al., 2017; wisetkomolmat et al., 2021). 3.2.3 dimensions of food, restaurants, souvenirs and plant products pak kowtong (local name) is scientifically known as, houttuynia cordata thunb. this plant belongs to the saururaceae family. it has a strong taste and smell, and it is occasionally used for its fresh leaves which can be used in desserts to reduce the smell and bitter taste. it has anticancer activities and can inhibit cancer cells. houttuynia cordata thunb. it is also a traditionally used agbioforum, 23(1), 2021 | 68 pinmongkhonkul, khamkhunmuang and madhayamapurush. — ethnobotanical study and plant dimension classification in kwan phayao community areas, phayao province, thailand medicinal plant for the treatment of pneumonia. flavonoids are one of the major bioactive constituents of houttuynia cordata (ling et al., 2020). 3.2.4 categorizing plants with health potentials prickly-leaved elephant's foot (english common name) goes by the scientific name, elephantopus scaber l. and is part of the asteraceae family. its root can be boiled to be used for cough-remedy, nourishment, boosting libido, treating mouth sores, and quenching thirst as well as an antipyretic. its root can be boiled or fermented in liquor for drinking together with strychnos axillaris and ficus foveolate wall as a way to nourish the body and relieve body aches and pains. the root, stem, leaves, and fruits can be boiled for drinking to treat gastritis or as a cough remedy. this agrees with a study that parts of elephantopus scaber l. can be used for treatment and nourishment (christina et al., 2020; phumthum et al., 2018). the laurel clock vine or blue trumpet vine is known locally in thailand as rang jeud. its scientific name is thunbergia laurifolia lindl and it belongs to acanthaceae family. the rang jued leaf can be sliced finely and air-dried and the remnant can then be combined with water to make tea. it is aromatic, helps detoxifying poison and has antioxidant properties. rang jeud herb can also be processed in capsule form of rang jeud for the purpose of easy and convenient use. drinking water boiled with rang jeud is traditionally believed to remove voodoo, potions, or black magic. the rang jeud leaf can be dried and mixed in fodder such as pig food, chicken food, etc. to enhance immunity and help animals survive disease (my et al., 2020; phumthum et al., 2018). 3.3 pattern of using local plants in the community around kwan phayao, 3.3.1 medicinal plants medicinal plants are mostly in the family fabaceae (legumes) followed by solanaceae (nightshade), cucurbitaceae (cucurbits), and euphorbiaceae (spurges). they can be categorized based on their medicinal properties. strengthening, and pain and ache relief was associated with cucurbita moschata duchesne. this is boiled or crushed into powder and dissolved in hot water. its poultice helps heal bruises and can be used as an antiinflammatory drug (armesto et al., 2020). cough and fever suppressant activity is associated with sesbania grandiflora (l.) it can be extracted for use as an antipyretic, antitussive, and to cure colds. it is an antipyretic when the season changes when it can reduce the symptoms of fever. diplazium esculentum (retz.) sw. can be boiled with water to be antipyretic, to counteract poisons and inflammation, and to reduce cholesterol levels. medicines for treating bones and teeth come from acmella oleracea (l.) r.k. jansen. its leaves and flowers have spilanthol with anesthetic activity. it is used to fill teeth and cure toothaches. the raw and processed jambu may be a good alternative for conventional vegetables, even after nutrients being lost during the process of boiling (neves et al., 2019). solanum melongena l. has flowers can be burned to ashes and then crushed finely and used as a medicine for toothache etc. medicines to treat diseases affecting women include citrus hystrix dc. its fruits and leaves are aromatic and have an unpleasant acidic taste. it can cure menstrual problems, purify blood during menstruation, and facilitate the expulsion of gas from the intestines. lactuca sativa l. has extracted juice that can be prepared to be a tonic, suppress period cramps, and help increase breast milk after delivery. antidotes such as clinacanthus nutans (burm.f.) lindau should use dried leaves, shells, and roots. these are crushed and mixed with grilled scorpions as a medicine against snake venom. it can also be boiled as a drink for its analeptic effects (pongmuangmul et al., 2016). antibiotics include piper betle l. its crushed leaves are used as a paste and can be used to relieve pains from bruises, kill germs in pus, and cure rhinitis, pharyngitis, and ringworm. ipomoea batatas (l.) lam. has juice extracted from the bulb which is topically applied to kill germs and bacteria. tai yai people use this plant to cure high blood pressure, lumbago, blisters, kidney diseases, kidney stone diseases, hemorrhoids, flatulence, and malaria. mouth diseasecuring medicine includes cyperus alternifolius l. (bhat et al., 2014; khuankaew et al., 2014). its boiled flowers are used with water for a drink. it can be held in the mouth and gargled as a medicine to cure mouth diseases, stomatitis, canker sores, and mouth paleness. momordica charantia linn. juice is extracted from the fruit and can cure stomatitis; the mouth becomes flaky and nourishes menstruation etc. the current research studies the effect of geographic separation of ethnic groups on local knowledge of medicinal plants used by akha people in thailand and china. from a total of 95 medicinal plants registered in the five villages, only 16 were shared between china and thailand. in all other ways, the use patterns are found to be quite similar with respect to which plant families and plant growth forms are used and also in terms of in which habitats the akha found their medicinal plants (inta et al., 2008) 3.3.2 plants used for food the most common food plants are found to be from the family fabaceae (legumes family). this was followed by the family solanaceae (nightshade family), euphorbiaceae (spurges family), and asteraceae (sunflower family). these families have a variety of species and can be found commonly in the study area. the most popular plant parts used for eating are shoot tips followed by fruits, leaves, and flowers (kichu et al., 2015; naidu et al., 2021; ripen et al., 2016). people usually eat food plants such as fresh vegetables or parboiled vegetables dipped with chili sauces, spicy minced meat, and papaya salad, e.g., vietnamese coriander. polygonum odoratum lour. is usually boiled or eaten as a fresh vegetable with minced meat. it is used to season spicy minced meat and in koi (spicy salad dish) (pei et al., 2009). azadirachta indica a. juss. is usually cooked as a curry, steamed, eaten as a fresh vegetable, or parboiled and dipped with chili sauce. in particular, it is used in making agbioforum, 23(1), 2021 | 69 pinmongkhonkul, khamkhunmuang and madhayamapurush. — ethnobotanical study and plant dimension classification in kwan phayao community areas, phayao province, thailand minced meat, papaya salad, koi, and jaew (sauce) (mahomoodally et al., 2019). sauropus androgynus (l.) merr. is usually cooked as curry, boiled, steamed, stirfried, eaten as a fresh vegetable, and dipped in chili sauce (khuankaew et al., 2014; kichu et al., 2015). 3.4 cultural importance of plants (ci) the index of cultural importance value of plants describes the frequency and varieties of plant utilization according to informants, including utilization of food and utilization of medicinal plants. when the ci of plants around kwan phayao is analyzed, it is found that plants accounting for 42 species had a ci over one, and the plant with the highest ci is centella asiatica (l.) urb. the whole plant is eaten as a fresh vegetable with spicy minced meat or parboiled as a vegetable eaten with chili sauce; it can be extracted to get the juice for a drink (sengupta et al., 2021). it also has medicinal properties whereby it can be boiled with water to make a drink to treat aphthous ulcer, exhaustion, and bruises; moreover, it can also reduce inflammation and be made into a skin cream or antibiotic. the plant with the second highest ci is cymbopogon citratus stapf. its stem is used as a component of food such as tom yum (hot and sour soup) and kaeng oom. the whole plant is used to treat stomach ache/asthma, to increase the flow of urine, to treat kidney stones, to suppress fishy smell, and to increase appetite (aumeeruddy et al., 2020). its stem is used as a carminative to treat gastrointestinal diseases, nourish the fire element, expel air in the intestine, and treat shy bladder syndrome. it can be used to treat thick saliva, colic, abnormal menstruation, and menstruation; it can also help remove phlegm from the throat and expel air in the intestine. the ci values are 1.22 1.42. the main species (in order of number of reports) are allium sativum l., followed by olea europaea l., allium cepa l., annona muricata l., persea americana mill., citrus aurantiifolia (christm.) swingle, catharanthus roseus (l.) g.don, moringa oleifera lam., cymbopogon citratus (dc.) stapf, and carica papaya l. pakistan (family:81; species:246) reports the highest number of plant species followed by mexico, nigeria, india, algeria, morocco, thailand, suriname, benin, and iran. leaf (35%), fruit (12%), and root (10%) are found to be the most preferred plant parts while the main methods of preparation are decoction (50%) and infusion (22%) (aumeeruddy et al., 2020). 4. summary and discussion of experiment results this paper studies plant utilization patterns of plants in the community around kwan phayao, including in community market areas around kwan phayao, all in all accounting for five markets i.e. ban mai sai market, ban bua market, ban toon market, ban sang market, and ban san bua bok market. the work reflects the trends observed from july 2019 to february 2020 and uses semi-structured interviews with 25 local healers and ethnobotany utilization questionnaires with 50 villagers accounting for 18 males and 32 females. these cover99 different species, 78 genera, and 36 plant families. the most common family was fabaceae (legumes family) consisting of 12 species (12.12%). this was followed by solanaceae (nightshade), cucurbitaceae (cucurbits family), and euphorbiaceae (spurges family). each family consists of seven species (7.07%). the family fabaceae (legumes family) has been studied previously, and villagers in phayao province utilized indigenous plants. this is in line with a past study on ethnobotany of indigenous plants utilization in the phayao province. the family fabaceae (legumes family) has the most members and is ranked third for flowering plants as itsthe distribution is quite extensive. a previous study focusing on ethnobotany utilization in phayao province shows that the use of indigenous vegetables is seen in 104 species, 85 genera, and 44 families. they were categorized as follows: dicotyledons accounting for 85 species, monocotyledon accounting for 16 species, and fern and fern allies accounting for 3 species. they mostly belonged to the family fabaceae (legumes family) accounting for 12 species. indigenous vegetables are unique foods for phayao province and include cissampelos pareira (l.) and brassica juncea (l.) czern. indigenous vegetables that are economic vegetables with market demand are senegalia pennata (l.) willd. subsp. insuavis (lace) i. c. nielsen, and champereia manillane (blume) merr. the most commonly found plants belong to the fabaceae family (legumes family). the plants are categorized based into two groups based on utilization: medicinal plants account for 99 species and plants used for food account for 86 species. this is in line with the study on ethnobotany in the area around mae fa luang university whereby the area that the lanna people use is surveyed by collecting data from interviews with knowledgeable people in the village in terms of local names, methods of use, and benefits. the total utilization accounts for 196 species: 77 for food, 133 for medicine, five economic plants, and 10 miscellaneous. ethnobotany studies of the black muser people in ban huayplalod, dan maelamoo sub-district and mae sod district in tak province indicate that people use plants for their different characteristics. this is studied through rapid botanical appraisal where the inhabitants are able to select various flora for a total of 193 species and 79 families. utilization was categorized into 6 types: plants used for food account for 60 species, 37 families; 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business performance; trust; linkages in the agricultural supply chain; opportunistic behavior. 1. introduction risks exist and arise in any type of business or business activity. risk is often understood in a negative way such as dissatisfaction with customer needs or impact on safety of customers (zsidisin, 2003). on the other hand, spekman and david (2004) argue that risk is the possibility of uncertainty over possible future outcomes, risk can have both positive and negative results. in the context of agricultural supply chain management, risks are perceived as the jeopardy related to information, the flow of materials and products from supplier to end-consumers, and the ability to influence market supply and demand mismatches (juttner et al., 2003). venkatraman and ramanujam (1986) argue that business performance is a factor that is of interest not only in managers, leaders in organizations and enterprises, but also receives a lot of attention from researchers interested in different aspects such as terminology, level of analysis (individual, group, department, etc.,). business performance of an enterprise can be seen in terms of financial results, non-financial results, or a combination of these indicators. there are many ways and criteria to measure business performance of enterprises in the agricultural supply chain management context. business performance can be measured from three perspectives: resource utilization, outcomes, and flexibility (beamon, 1999). up till now, in their studies, many authors have mentioned the relationship between risk in the agricultural supply chain management and business performance of enterprises. the studies have explored the risks from many different aspects and studied the impact of each aspect on business performance. trkman and mccormack (2009) argue that the high-risk market is characterized by changing customer needs that are difficult to predict. businesses often find it difficult to meet customer needs in such environments. risks from suppliers can be caused by low planning and production capacity that causes the production process or production cycle to be unstable, followed by an imbalanced production system, inflexible production, or inability to apply new technologies (punniyamoorthy et al., 2011). the business environment of the business is constantly fluctuating, the agricultural supply chain operation also has potential risks arising from this volatility from the environment. the theory of organization’s dependence on external resources asserts that organizations need to adjust as their environment or circumstances change. the organization's environment includes: (1) customers and consumers; (2) funding sources; (3) input suppliers; (4) science and technology (tossi & slocum, 1984). modifications often involve changing the organizational structure, strategies, or other limitations of the organization. in the field of agricultural supply chain management, the influence of the environment on an organization has been extensively mailto:cucntt@vinhuni.edu.vn agbioforum, 21(3), 2019 | 24 tran et, al. — the effects of risks in agricultural supply chain management on business performance studied (wong, 2011). david (1993) asserted that organizations establish and develop relationships with agricultural supply chain partners to limit the risks and impacts of environmental instability. mentzer et al. (2001) support this assumption, while further asserting that increased global competition increases environmental instability and promotes linkages among members in the agricultural supply chain. chen and paulraj (2004) also confirm that volatility of supply, demand and technology are the primary factors that lead to environmental volatility and this volatility affects the strengthening relationship between buyers and seller. in fact, vietnamese enterprises with most small and medium-sized enterprises, although considered to have made significant progress in many fields, many businesses still have only limited operation scale, fragmented manual methods and unclear business strategies, leading to an overall low business performance. in the market economy, risk is always an important issue when participating in production and business activities. until now, many businesses in vietnam are still unable to define strategies and coordinate them to minimize risks as well as promote agricultural supply chain management link development and business performance. to limit risks and create a position in the market, businesses need solutions to promote their own competitiveness. besides, engagement and building trust among participants and controlling opportunistic behavior is an effective path, thereby promoting enterprises to increase initiative, develop working efficiency and improve business performance. this research is based on an overview of the theory and related works, constructing the model, and testing the impact of risks in the agricultural supply chain management on the business performance of the business. given the context of enterprises in vietnam, research shows the importance of risk control and the relationship in which risks in agricultural supply chain management impacts the business performance of firms. at the same time, the research results also show a theoretical contribution when it substantiates the negative impact from the trust of participants and linkages in the agricultural supply chain management on the business performance of enterprises. in addition, research also demonstrates the mediating role of participants' trust factors and the link in agricultural supply chain management in the relationship between risks and business performance. based on these results, the study proposes several recommendations to encourage businesses gain insight into agricultural supply chain management risks as well as its factors for business performance, thereby calling for more effective and efficient solutions and policies for the future. 2. literature review and hypotheses 2.1. risks in the supply chain and business performance of the enterprises risk is defined in different ways depending on the area of study (wagner & bode, 2008). according to juttner et al. (2003), agricultural supply chain management risks are those that disrupt or impede information, the flow of materials and products from supplier to end consumer, and the ability to influence the mismatch between market supply and demand. there are many ways to classify the origin of risks (chien, pantamee, et al., 2021). first, the source of risks can be explained by a spiral that has four components including lack of visibility or transparency, lack of confidence, creating buffers and length of agricultural supply chain. when the visibility or transparency of agricultural supply chain is limited, it reduces confidence in participating in the agricultural supply chain management, thereby creating buffers, gaps between members or dividing into multiple individual segments of the agricultural supply chain and thus lengthening the agricultural supply chain (christopher & lee, 2004). spekman and david (2004) classify risks in the agricultural supply chain management into six groups, including: risks occurring in the physical flow (commodity) of the agricultural supply chain management; information flow; currency; the organization's internal information system; relationships and social responsibility of members in agricultural supply chain management. cavinato (2004) divides risk in the supply chain from the following five sources: risks in the physical flow; currency; information; innovational opportunities for members in agricultural supply chain. juttner et al. (2003) classify risks in the agricultural supply chain management into three groups: environmental risks due to uncertain business environments, such as disasters or crises; organizational risks are caused by chain actors, such as malfunctions in the production and distribution system; the last is the risk related to workers' strikes or errors from the structure and characteristics of the agricultural supply chain management such as lack of cooperation, linkages and sharing among members in the chain (chien, sadiq, et al., 2021). supplier risk can develop due to many problems associated with new product development, distribution problems or relationships among members, problems with product quality, input costs, inability to satisfy customer needs, outdated technology, scarce resources, shortages or price constraints and ultimately geographic distance between buyers and sellers (zsidisin, 2003). a third group of risks is related to environmental factors outside the agricultural supply chain management such as political environment, macroeconomic environment, laws, government policies, society, labor resources and nature (punniyamoorthy et al., 2011). risks can also come from information source volatility including information that is unavailable, information provided with delays, damaged and disruptive information infrastructure, or information coming from insecure sources. (punniyamoorthy et al., 2011). in addition, juttner et al. (2003) divide agricultural supply chain management risks into three different categories. agbioforum, 21(3), 2019 | 25 tran et, al. — the effects of risks in agricultural supply chain management on business performance the first group of risks resides within the organization, including process risks and control risks. process risk involves uncertainty or disruption in value adding activities. control risk arises from adopting or not applying policies to manage the organization's processes (nawaz et al., 2020). the second group of risks is the group of risks outside the business but still inside the agricultural supply chain management, including the risks from supply and demand. risks from market demand are due to the fluctuating, complex and unstable market environment (boyle et al, 2008). among the approaches and risk classification, the approach according to juttner et al. (2003) and punniyamoorthy et al. (2011) is quite common in agricultural supply chain management studies, including: risks from the agricultural supply sources, risks from the market, risks from information sources and ultimately, risks from the environment. neely et al. (1995) argue that business performance is a set of criteria to quantify the efficiency of all aspects of enterprises. it is examined by three levels: individuals, enterprises' goals, and the relationship between such evaluation criteria with the operating environment (culture, customer satisfaction, development strategy, etc.,). maisel (2001) evaluates the business performance of enterprises as a system that allows enterprises to plan, measure and control the results of sales, marketing, information technology activities, and business decisionmaking and other activities to set goals and create value for people with related interests. according to kaplan and norton (1993), the business performance is determined from four basic groups of components, including finance, customers, internal processes, and developmental learning. it builds the basis for converting the content of the business strategy into execution terms. a study of delaney and huselid (1996) measures business performance not based on financial indicators but on employee perceptions of an organization's performance based on criteria such as product quality, new product development, ability to attract employees, customer satisfaction and the relationship between managers and employees as indicators of the performance of the management in the business. awareness-based measurement had a positive effect on organizational performance (dollinger and golden, 1992). in addition to the two directly impacting factors mentioned in the research content, which are risks in the agricultural supply chain management and business performance, the study also mentions intermediate factors including trust, the linkages in the agricultural supply chain management and the opportunistic behaviors of the members participating in the agricultural supply chain management (shair et al., 2021). trust is one of the factors that create effectiveness in relationships. maryer roger c. et al. (1995) believe that trust is when we put our belief in another; it is necessary to clarify the concept of trust in the relationship between trustees and believers. in the agricultural supply chain partnerships, building trust among the participants is considered an urgent requirement, affecting knowledge sharing, work productivity, thereby promoting enterprises' business performance (sun et al., 2020). linkages in agricultural supply chain management are widely studied in supply chain management (jianjun et al., 2021). the linkages exist both inside and outside of the business. entrepreneurship implies cooperation in agricultural supply chain management-related activities such as inventory management, freight transportation, warehouse management or order and purchasing management (romano, 2003). external links are like the internal, however, these activities are outside or between businesses. based on the development of the concept of agricultural supply chain management linkages in both practice and theory, bechtel and jayaram (1997) have divided four different schools of concept about agricultural supply chain management linkages: (1) the “lingkages/ logistics school”, which assumes that agricultural supply chain management link logistics activities; (2) the "information school", which presumes linking flows of information to be both inside and outside the business; (3) the "integration / process school", which calls for the concept of linking business processes between businesses in the agricultural supply chain management; (4) the "functional chain awareness school", which divides supply chain linkages into external links (links between businesses) and internal links (mohsin, kamran, nawaz, hussain, & dahri, 2021). meanwhile, many other studies on agricultural supply chain management linkages focus on studying the links between organizations, individuals, and businesses. specifically, the link between enterprises and customers, links with suppliers, or links from suppliers, manufacturers, and through intermediaries to end consumers (swink et al., 2007). linking with customers to determine the right needs of customers and thereby mobilize the necessary resources needed to create products and services that customers desire. coopeorating closely with the customer reduces the risk from market volatility, at the same time improving the efficiency of production and ultimately increasing enterprise’s profits (enkel et al., 2005). besides linking with customers, linking with suppliers is also focused. building an intimate connection with suppliers to always be guaranteed when acquiring enterprise inputs such as raw materials, machinery, equipment, experts, and even valuable information, etc., to ensure a smooth and timely process of manufacturing and distributing products and services to customers (klein & rai, 2009). this study focuses only on the external linkages, between members of the agricultural supply chain management, from input suppliers and customers (nawaz et al., 2021). in a partnership, the behavior of the participants includes both positive and negative behaviour. the opportunistic behavior is the act of seeking personal gain by fraud (williamson, 1975), the essence of which is the breaking agbioforum, 21(3), 2019 | 26 tran et, al. — the effects of risks in agricultural supply chain management on business performance of commitments or the violation of obligations and responsibilities that require performance (morgan & hunt, 1994). according to nguyen et al. (2020), opportunistic behavior is considered as a form of negative behavior, governed and determined by the perception, attitude, and capacity of individuals and organizations. 2.2. research hypotheses 2.2.1. risks in agricultural supply chain management and business performance business performance can be measured on three levels: resource utilization, output results and flexibility (beamon, 1999). the instability of the business environment creates many risks for businesses (david, 1993; simchi & zhao, 2003). uncertainty can result from delayed deliveries from suppliers, sudden increases in market demand, or canceled contracts. to mitigate these risks, conventional businesses tend to increase the level of reserves. however, this does not solve the problem that the business may still have shortages or excesses of inventory (david, 1993). strengthening cooperation and information sharing with members in the agricultural supply chain management to reduce risks and thereby improve business performance is considered an effective solution to solve the above effect (lee & associates, 1997). in order to test and consider the impact of risks in the agricultural supply chain management on business performance of enterprises in vietnam, the following hypothesis is built: h1: risks in the agricultural supply chain management negatively affect the business performance of enterprises in vietnam (see figure 1). 2.2.2. risks and trust among participants in agricultural supply chain management trust among participants in the agricultural supply chain management shows a positive sign in relationships and has a positive impact on the business performance of enterprises. however, trust and risk are always linked in each specific case. failure to deliver on time, delay or destruction of supply contracts would affect the coordination of activities between departments in the organization such as those between the procurement department and the production department (frohlich & westbrook) , 2001). this also makes it difficult for manufacturing enterprises to meet deadlines, in sufficient quantity and in terms of quality for customers. customers' trust and cooperation with manufacturers will be reduced (zsidisin, 2003). in the context of enterprises in vietnam, in order to test the relationship between risk and trust among participants in the agricultural supply chain management, the authors hypothesize: h2: risks of negative impact on trust among participants in the agricultural supply chain management in vietnam (see figure 1). 2.2.3. trust among participants in agricultural supply chain management and business performance bakiev (2013) argues that the high-performance work system through mediation is the relationship between trust, organizational engagement and organizational performance perception that has a positive effect on the business performance of the enterprise. guinot et al. (2014) argue that trust among participants is a factor that positively affects the business performance of organizations. with most research results, the same point of view is that trust among members in the agricultural supply chain management has a positive impact on the performance of enterprises such as the research of klein and rai (2009). however not all studies have found a positive relationship between trust and business performance. in partnership, building trust among members is one of the necessary solutions, having an impact on the effectiveness of management decisions, and at the same time, affecting the productivity of enterprises. therefore, in the context of enterprises in vietnam, trust among participants in the agricultural supply chain management will affect the business performance of enterprises. the hypothesis built: h3: trust among participants in the agricultural supply chain management positively affects the business performance of enterprises in vietnam (see figure 1). 2.2.4. risks and linkages in the agricultural supply chain management linkages in the agricultural supply chain management create added value for each participant. however, in this linking process there may exist different risks. risks can affect both positively and negatively. on the negative side, the relationship between instability or risks and linkages in the agricultural supply chain management was also tested in a number of studies and showed results contrary to the suggestions of a positive relationship. agricultural supply chain management risks such as on-time delivery, failure to meet requirements in terms of quantity and quality can negatively affect supply chain linkages (zhao et al., 2013). when agricultural supply chain management risks increase, manufacturers will not want to invest capital or strengthen their commitment to long-term relationships with suppliers. instead of linking and being loyal to one or several suppliers, enterprises tend to choose to have relationships with many suppliers to reduce risks and increase safety for production and business. risks due to unstable market, constantly fluctuating demand, are difficult to predict insofar as they affect the alignment of the agricultural supply chain management. high market risk cause manufacturers to frequently change products, volumes, and orders (trkman & mccormack, 2009). this will affect the supply of raw materials from suppliers to manufacturing enterprises. the high risk from the market also makes it difficult for the marketing department to coordinate smoothly with other departments in the organization such as the production department or the material supply department. finally, market demand fluctuates and changes, making it difficult for manufacturers to identify market needs and customer feedback, and to connect with customers (calantone et al., agbioforum, 21(3), 2019 | 27 tran et, al. — the effects of risks in agricultural supply chain management on business performance 2003). in order to test the impact relationship of risks on the link in the agricultural supply chain management and its impact direction, in the context of enterprises in vietnam, the hypothesis is built: h4: risks have a negative impact on the linkages in the agricultural supply chain management of enterprises in vietnam (see figure 1). 2.2.5. agricultural supply chain management linkages and business performance the relationship between linkages in the agricultural supply chain management and business performance of enterprises is studied from different angles. from an agricultural supply chain management perspective in general, linkage implies the connection with suppliers and with customers (li et al., 2006). this view can also imply the relationship between buyers and sellers in terms of logistics (chen & paulraj, 2004). in general, most studies suggest that external linkages have an impact on the business performance of enterprises. li et al., 2006 argue that agricultural supply chain management and linkages have a direct and long-term impact on a firm's financial and marketing performance. linking logistics activities with suppliers and customers improves the efficiency of both sellers and buyers (chen & paulraj, 2004). from an agricultural supply chain management perspective in general, li et al. (2006) demonstrates the impact of supply chain linkages on long-term marketing and financial performance. in the scope of logistics, paulraj (2007) also discover a relationship between the linkage of logistics activities between enterprises and the business performance of each enterprise participating in the association. although many studies confirm the impact of agricultural supply chain management linkages on the business performance of enterprises, this relationship is only partially confirmed in other studies. specifically, while the degree of association affects the sales-to-asset ratio, it does not affect the increase in customer satisfaction and sales (rosenzweig et al., 2003). similarly, vickery et al. (2003) confirm a failure to find evidence of the effect of agricultural supply chain management linkages on the ratio of revenue before tax to total assets (roa). collaboration with key suppliers and key customers will reduce costs, improve product design and quality and service quality. and finally, the above improvements will help improve productivity, while also improving business results. with the context of enterprises in vietnam, to test more clearly the relationship between agricultural supply chain management linkages and the business performance of enterprises, the following hypothesis is set out: h5: agricultural supply chain management linkages positively affect the business performance of enterprises in vietnam (see figure 1). 2.2.6. risks and opportunistic behavior of participants in agricultural supply chain management risks in the agricultural supply chain management can arise due to the impact of the political, economic, social, natural environment, etc., and these risks increase as the agricultural supply chain managements increasingly expands and becomes more complex. (khan & burnes, 2007). these risks are often objective and beyond the control of each member of the chain and can create negative opportunistic behavior. therefore, members often tend to diversify their relationships to minimize the above risks instead of enhancing cooperation, closely linking with a few partners, and thereby also minimizing unwanted actions from partners. to further analyze and examine the relationship between risks and opportunistic behavior of participants in the agricultural supply chain management in enterprises in vietnam, the following hypothesis is built: h6: risks have a positive impact on the opportunistic behavior of participants in the agricultural supply chain management in vietnam. (see figure 1). 2.2.7. opportunistic behavior of participants agricultural supply chain management and business performance according to katsikeas et al. (2009), opportunistic behavior negatively affects trust, thereby affecting the performance of businesses. opportunity behavior often stems from the individual needs and interests of each organization. in this relationship, needs determine interests. performance depends on the relationships among the participants, tolerance, adaptability, and teamwork, which are also important behaviors of each member. business performance, if dominated by personal interests, will have a negative impact. most research have shown the impact of the opportunistic behavior of members in the agricultural supply chain management on the business performance of enterprises. thus, in the context of vietnamese enterprises, whether there is a direct relationship between the opportunity behavior of the members in the agricultural supply chain management on the business performance of enterprises or not. the hypothesis is set forth: h7: opportunistic behavior of participants in the agricultural supply chain management has a negative impact on the business performance of enterprises in vietnam (see figure 1). 2.2.8. linkages and trust among participants in the agricultural supply chain management george and jones (1996) argue that satisfaction is a set of feelings and beliefs associated by members with their job. creating sustainable linkages in the agricultural supply chain management improves the satisfaction of participants, creates initiative in activities, reduces costs and increases profits (david, 1993). also, the association and cooperation between members in the agricultural supply chain management help enterprises expand their market share, reduce costs and ensure sustainable development (lee & whang, 2000). to examine and clarify the direction of the impact of the association on trust among participants in the agricultural supply chain agbioforum, 21(3), 2019 | 28 tran et, al. — the effects of risks in agricultural supply chain management on business performance management in the context of enterprises in vietnam, the following hypothesis is proposed: h8: linkages positively affect trust among participants in the agricultural supply chain management in vietnam (see figure 1). 2.2.9. linkages and opportunistic behavior of participants in agricultural supply chain management in fact, opportunistic behavior in relationships frequently appears and has a significant influence on the performance of organizations. opportunistic behavior is often associated with risks in agricultural supply chain management linkages in a negative direction such as not satisfying the needs of partners or affecting the safety of enterprises (zsidisin, 2003). the high-risk market is characterized by the constantly changing and unpredictable needs of customers and institutions in their commitment. enterprises find it difficult to do business when operating in such an environment (trkman & mccormack, 2009). in the context of enterprises in vietnam, in order to clarify the relationship between linkages and opportunistic behavior of agricultural supply chain management members, the authors hypothesize: h9: linkages have a negative impact on the opportunistic behavior of participants in agricultural supply chain management in vietnam (see figure 1). 3. research method 3.1. research scale based on theoretical overview and related research works, the article proposes a research model with independent variables as risks in agricultural supply chain management including risks from the supply sources; risks from the customers; risks from information sources and ultimately, risks from the environment. the scale used in the study is a likert scale with 5 levels (strongly agree; agree; normal; disagree; strongly disagree). variable measurement indicators are applied with adjustments to the characteristics of the research sample from previous studies. the variable, agricultural supply chain management risk (ascmr) is measured using the research scale of wagner and bode (2008), punniyamoorthy et al. (2011), zhao et al (2013) includes 18 observations with 4 groups of factors: supply risk (rs) has 5 observations; risk from customer (rc) has 3 observations; risk from information (ri) has 4 observations; risk from environment (re) has 6 observations. trust of participants in the agricultural supply chain management (tr) using the scale of morgan and hunt (1994) with 5 observations; agricultural supply chain linkages (ascl) uses a research scale of zhao et al. (2013) including 13 observations with 2 groups of factors: linkages with suppliers (ls) has 7 observations; linkages with customers (lc) has 6 observations; opportunistic behavior (opb) using the scale of katsikeas et al. (2009) consisting of 5 observations; business performance (bp) uses the scale of huselid (1995) consisting of 6 observations. figure 1: proposed research model 3.2. research sample the research sample is selected through the nonprobability sampling method, which is convenient sampling stratified relatively according to provinces and risks in the agricultural supply chain management risks from the supply sources risks from the customers risks from information sources risks from the environment trust linkages in agricultural supply chain management: linkages with suppliers linkages with customers business performance opportunistic behavior h6 (+) h7 (-) h2 (-) h3 (+) h1 (-) h4 (-) h5 (+) h8 (+) h9 (-) agbioforum, 21(3), 2019 | 29 tran et, al. — the effects of risks in agricultural supply chain management on business performance localities in vietnam. the unit of analysis in this study are those individuals who are identified as managers with experience and knowledge of agricultural supply chain management in enterprises in vietnam. the sample size for collection is 625 samples. the data collection process is conducted in two ways: direct and online questionnaires distribution. the number of online questionnaires collected is 397 while the the number of available questionnaires is 359. in terms of direct survey, the number of questionnaires issued is 400, the number of questionnaires collected is 298, and the number of questionnaires used is 266. the total number of valid questionnaires used for analysis is 625. based on the study of hair et al. (1998), for reference to the expected sample size, the minimum sample size is 5 times the total number of observed variables. with the number of observations in the paper being 39, the research scale includes 598 samples to ensure analysis requirements. the time to complete data collection spanned from november 2020 to january 2020. 3.3. data processing the research applies quantitative methods. the data after collection and cleaning are processed through spss and amos. first, the study assesses the reliability of the scale with cronbach’s alpha value> 0.7, the study analyses the efa discovery factor with the aim of determining the "convergence value" and "discriminatory value of the scale" and with the requirement of factor loading > 0.5, kmo coefficient >= 0.5 and <=1, sig value. < 0.05, and the percentage of variance extracted > 50%. after that, amos software is used to evaluate the suitability of the research model through cfa test and finally test the research hypotheses by analyzing the sem linear structural model with the requirements of chi–square/df index < 5 in the case of sample size > 200 (kettinger et al., 1995); gfi, tli, cfi > 0.8, rmsea < 0.08 (taylor et al., 1993). 4. results and discussion 4.1. testing the reliability of the scale cronbach's alpha test analysis results show that in terms of reliability of the scale used in the analysis that the cronbach's alpha coefficient of all variables > 0.7. however, bp6 indicator has cronbach's alpha if item delete coefficient as 0.959 which is larger than the cronbach's alpha coefficient of bp variable (0.940). therefore, in order to increase the relevance of the scale, this indicator is conducted (see table 1). table 1: assess the reliability of the scale through cronbach's alpha coefficient no. variables ref. code cronbach’s alpha 1 risks from the suppliers rs 0.863 2 risks from the customers rc 0.884 3 risks from information ri 0.919 4 risk from enviroment re 0.886 5 trust tr 0.808 6 linkages with the suppliers ls 0.894 7 linkages with customers lc 0.732 8 opportunistic behavior opb 0.856 9 business performance bp 0.959 4.2. efa after testing the appropriateness of the scale, the study analysed the discovery factor efa for both the variables, the intermediate variable, and the dependent variable. for the independent and intermediate variables, the efa analysis is conducted twice, in which the factor loading in each analysis was > 0.5, showing the appropriate correlation between the variables observed (indicators) and selected factors in the model. however, in the first analysis, because "convergence value" does not guarantee the same factor, the re2, ls5, lc3 indicator were rejected. the second analysis shows that the remaining data are eligible for analysis due to factor load coefficients > 0.5 and satisfy two conditions; "convergence value" (observed variables converge to the same one factor) and "distinguishing value" (observed variables belonging to one factor distinguished from another). with the dependent variable being business performance, the analytical results showed that the kmo coefficient was 0.893 (> 0.5), the sig of bartlett's test was 0.000 (<0.05), the total variance extracted was 86.195% (> 50%). at the same time, the indicators of the scale are combined into a single group, ensuring the "convergence value" of the scale. (see table 2) table 2: results of analysis efa factor efa analysis kmo coefficient p-value average variance extracted factors loading conclusion independent and intermediate variables the 1st time 0.881 0.000 64.698 all are> 0.5 remove indicator re2, ls5, lc3 the 2nd time 0.884 0.000 66.104 all are> 0.5 ensure analysis requirements dependent variable the 1st time 0.893 0.000 86.195 all are> 0.5 ensure analysis requirements agbioforum, 21(3), 2019 | 30 tran et, al. — the effects of risks in agricultural supply chain management on business performance 4.3. cfa the research results indicate the appropriateness of the measurement model. chi–square = 2916.087, df = 820, chi–square/df = 3.556 (<5), p= 0.000, gfi = 0.825 (>0.8), tli = 0.886 (>0.8), cfi = 0.897 (>0.8), rmsea = 0.064 (<0.08). 4.4. sem analysis conducting analysis of the sem model for the research model, we see that the synthetic indicators are satisfactory. specifically, chi–square = 3248.013, df = 841, chi– square/df = 3.862 (<5), p= 0.000, gfi = 0.810 (>0.8), tli = 0.873 (>0.8), cfi = 0.881 (>0.8), rmsea = 0.068 (<0.08) (see figure 2). figure 2: sem model analysis the results of the estimation of relationships in the model show that the research model is appropriate, the hypotheses h1, h2, h4, h6, h8 are accepted, while h3, h5, h7, and h9 are rejected according to the test results. particularly, with the hypothesis h1 which tests the impact of risks in the agricultural supply chain management on the business performance of enterprises in vietnam, the research results show that the hypothesis is accepted with the significance level p < 0.05 and the regression weight is -2.334 < 0. this proves that risks in the agricultural supply chain management have a negative impact on business performance. this result corresponds to the research works of david (1993); simchi and zhao (2003); lee et al., 1997), etc, with hypothesis h2 and h3, which test the impact of risks in the agricultural supply chain management on the trust of participants and the impact of trust on business performance of enterprises in vietnam, the results show that with the significance level of p < 0.05 and the regression weight of -0.437 and -0.167 (<0), the study accepts the hypothesis h2 and rejects h3. thus, the research results are similar to those of frohlich and westbrook (2001); zsidisin (2003), etc., when arguing that risks in the agricultural supply chain management have a negative impact on the trust of participants. however, with the second dimension, the study proves that the trust of participants in the agricultural supply chain management has a negative impact on business performance, this result is in contrast to other works as bakiev's study (2013); guinot et al (2014); klein and rai (2009). this is explained by taking advantage of the partners' trust in the relationships, and not making efforts to contribute to the overall success of the organizations. moreover, the loose connection between participants in the agricultural supply chain management can create loopholes for participants' profiteering behaviors and thereby affect the business performance of other participants. . with hypothesis h4 and h5, which test the impact of risk on linkages in the agricultural supply chain and the impact of linkages on business performance of enterprises in vietnam, the results show that the significance level of p < 0.05 and the regression weights of -0.847 and -1.024, respectively (<0), leading this study to accept the hypothesis h4 and rejects the h5 hypothesis. this result shows similarities with the studies such as zhao et al (2013); trkman and mccormack (2009); calantone et al. (2003) when arguing that risks have a negative impact on linkages in the agricultural supply chain. however, with the other direction, although rejecting the h5 hypothesis, the study proves that linkages in the agricultural supply chain have a negative impact on business performance. this result is contrary to the work of li et al (2006); li et al (2006); rosenzweig et al. (2003), etc., but it partly reflects the current reality of enterprises in vietnam where although there are linkages, these linkages are based heavily on computational relationships, for the interests of the participants themselves, but not based much on the agbioforum, 21(3), 2019 | 31 tran et, al. — the effects of risks in agricultural supply chain management on business performance interests of the participants. this may result in personal profiteering behaviors and a lack of positive cooperation from participants, thereby affecting the business performance of the entire system of enterprises participating in the agricultural supply chain management. with hypothesis h6 and h7, which test the impact of risk on opportunistic behavior of agricultural supply chain management participants and opportunistic behavior on business performance of enterprises in vietnam, the research results show that the hypothesis h6 is accepted with the significance level p < 0.05 and the regression weight is 1,317 (>0), which proves that there is a positive impact of risk on behavior opportunities of participants in the agricultural supply chain management. this result shows similarities with the works of khan and burnes (2007); katsikeas et al. (2009), etc., while, with a p significance level of 0.129 (> 0.05), hypothesis h7 is rejected, that is, there is no impact of opportunistic behavior of participants in the chain. provided to the business performance of enterprises, this result is in contrast to the research work of katsikeas et al (2009); zhao et al (2013), etc,. while, with a p significance level of 0.129 (> 0.05), hypothesis h7 is rejected, that is, there is no impact of opportunistic behavior of agricultural supply chain management participants on business performance, this result is in contrast with the studies such as katsikeas et al. (2009); zhao et al (2013). thus, with the above results, the study has shown that risks in the agricultural supply chain management have both direct and indirect impacts on the business performance of enterprises through intermediary factors as trust and linkages in the agricultural supply chain. at the same time, the research results also show a theoretical contribution when it is shown that there is a negative impact from the trust of participants and linkages in the supply chain on the business performance of the enterprise (see table 3). in addition, for hypothesis h8 and h9 which tests the impact of linkages in the agricultural supply chain management on the trust and opportunistic behavior of participants, research results show that with the significance level of p < 0.05 and the regression weight of 0.276 (> 0), the study accepts the hypothesis h8, that is, there is a positive impact of the linkages on trust between participants in the agricultural supply chain management. this shows similarities with the work of george and jones (1996); david, 1993); lee and wang (2000), etc,. meanwhile, with p < 0.05 significance and regression weight of 0.276 (> 0), hypothesis h9 was rejected and at the same time, the study also proved that there is a positive effect of the linkages in the agricultural supply chain to the opportunistic behavior of participants. this result is in contrast to the studies of zsidisin (2003); (trkman and mccormack, 2009), ec., and shows the downside of agricultural supply chain linkages necessitating the need for tight control of relationships and greater attention to the opportunistic behavior of participants, limiting individualism and tendencies to value individual interests over collective interests. table 3: sem analysis results for the relationships in the model hypothesis relationship weightage s.e c.r. p conclusion h1 bp <--ascmr -2.334 0.446 -5.237 0.000 accepted h2 tr <--ascmr -0.437 0.109 -4.001 0.000 accepted h3 bp <--tr -0.167 0.072 -2.333 0.020 rejected h4 ascl <--ascmr -0.847 0.071 -12.017 0.000 accepted h5 bp <--scl -1.024 0.329 -3.117 0.002 rejected h6 opb <--ascmr 1.317 0.206 6.404 0.000 accepted h7 bp <--opb 0.218 0.144 1.518 0.129 rejected h8 tr <--ascl 0.276 0.109 2.539 0.011 accepted h9 opb <--ascl 0.595 0.191 3.117 0.002 rejected thus, the study has proven the importance of risk in the agricultural supply chain management in the relationship that directly and indirectly affects the business performance of enterprises, as well as the intermediary role of elements of trust and linkage in the agricultural supply chain. to make more practically meaningful judgments and examine the relationship between the research results in terms of theory and practice, the study conducts descriptive statistical analysis to determine the mean variables. the results show that, with the highest average value of the research variables included in the model of 3.8163, the business performance factor of vietnamese enterprises is recognized and evaluated at a relatively higher level. these are positive signs, showing steps in the right direction, breakthrough and effective solutions of vietnamese enterprises in the current context and a positive signal to show that that vietnamese businesses are ready to participate more in global value chains, towards the sustainable development of businesses. besides, the mean value of opportunity behavioral variable is 2.1520, this is the lowest level compared to other factors included in the model. this shows that, in agricultural supply chain management activities, the opportunistic behavior of the participants has been somewhat controlled and businesses have a deeper sense of minimizing opportunistic behaviors. however, this number is still quite high today with the requirement of a negative factor, individualism still exists and it is necessary to join hands and contribute efforts of businesses and organizations to limit and eliminate it in order to create an equal business environment and strong links aimed at the long-term development of the whole system of participants in the agricultural supply chain management (see table 4). agbioforum, 21(3), 2019 | 32 tran et, al. — the effects of risks in agricultural supply chain management on business performance table 4: the results of the descriptive statistical analysis of the variables’ value variable n min max mean std. deviation ascmr 625 1.05 4.32 2.3860 0.49475 rs 625 1.00 5.00 2.1891 0.63013 rc 625 1.00 5.00 2.4352 0.71719 ri 625 1.00 5.00 2.3708 0.70442 re 625 1.00 5.00 2.5488 0.66857 tr 625 1.20 5.00 3.7382 0.61401 ascl 625 1.75 5.00 3.6011 0.54124 ls 625 1.00 5.00 3.7581 0.63657 lc 625 1.80 5.00 3.4442 0.62108 opb 625 1.00 5.00 2.1520 0.65280 bp 625 1.00 5.00 3.8163 0.66104 5. conclusions and administrative implications based on theoretical overview and related works, this research has been conducted to build a model and test the impact of risks in the agricultural supply chain management on the business performance of enterprises in vietnam. research results show that risks in the agricultural supply chain management have both direct and indirect impacts on business performance of enterprises through intermediary factors such as trust and linkage in the agricultural supply chain. at the same time, the study also shows that there is a negative impact from the trust of participants and linkages in the agricultural supply chain to the business performance of enterprises. in addition, the study also demonstrates that linkages have a positive effect on both trust and opportunistic behavior of participants in the agricultural supply chain management. on that basis, the study proposes several recommendations to help enterprises improve business performance and move towards the sustainable development of agricultural supply chain value. firstly, in term of risks in the agricultural supply chain management, it is necessary to improve the state management capacity to control activities, have mechanisms and policies to promote the participation of enterprises in the agricultural supply chain management. at the same time, the enterprise focuses on stably and gradually expanding the market, expanding the association and business scope of the participating members, thereby minimizing risks, and improving business performance. secondly, in term of trust among participants in the agricultural supply chain management, it is necessary to create a friendly and fair cooperation environment, encouraging open and frank information sharing among participants of the agricultural supply chain management. building good relationships between enterprises and customers, showing confidence in the ability of partners and suppliers to work together is a sustainable way. third, in term of linkages in the agricultural supply chain, it is necessary to agree on appropriate mechanisms in building linkages to ensure harmonization of interests between the parties involved. 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(2003). a grounded definition of supply risk. journal of purchasing and supply management, 9(5), 217-224. agbioforum, 24(1): 116-128. ©2022 agbioforum impact of energy consumption and agriculture growth on the environmental degradation: evidence from asean countries khoa dang duong vo truong toan university, vietnam highway 1a, tan phu thanh, chau thanh a hau giang province, vietnam email: ddkhoa@vttu.edu.vn thanh quang ngo* school of government, university of economics ho chi minh city (ueh), ho chi minh city 72407, vietnam email: thanhnq@ueh.edu.vn research group public governance and developmental issues, university of economics ho chi minh city (ueh), ho chi minh city 72407, vietnam. * corresponding author globally, renewable and nonrenewable energy usage have been identified as key indicators of environmental degradation, necessitating additional investigation. this essay aims to examine the impact of energy use and agricultural expansion on environmental degradation. the paper selected several energy consumptions factors, including renewable energy, fossil fuel, electric power, energy consumption, energy import, and gdp. the study gathered secondary data from world bank indicators from 1991 to 2020 from asean countries. phillips-perron (pp) and augmented dickey-fuller (adf) approaches were utilized to analyze unit roots between constructions. the study also considered the qardl approach to assess the correlation between selected constructs. in the sample of asean economies, renewable energy consumption and co2 emissions were inversely linked; however, other variables demonstrated a positive relationship with co2 emissions. after the paper, several ramifications were outlined that could aid regulators in taking corrective action regarding co2 reduction through rec. key words: renewable energy consumption, gross domestic product, electric power consumption, agriculture growth, energy import, energy use, carbon dioxide (co2) emissions. 1. introduction in recent decades, the global environment has undergone dramatic changes. regardless of the cause of these changes, there is little doubt that they have disastrous repercussions for humanity. few of these factors' results are comparable to global warming. global warming is now a global problem that has compelled the globe to take substantial measures to combat it (ainou, ali, & sadiq, 2022). the international community expresses its interest in this matter through various means, such as the paris agreement, etc., as environmental degradation has become a major concern for the entire human population. this issue is mostly caused by manmade factors as opposed to natural occurrences. compared to wealthy nations, co2 emissions have a bigger negative impact on the environment and a greater negative impact on developing countries. additionally, it has been discovered that using nonrenewable energy increases carbon emissions. in contrast, the use of renewable energy results in a decrease in co2 emissions (chien et al., 2021; sadiq et al., 2022).climate change is currently the most popular topic. fossil fuels are responsible for 90 percent of carbondioxide emissions. in order to mitigate the negative effects of climate change, renewable energy resources are a rapidly expanding energy source that will account for 14% of total energy consumption by 2035. due to trade-friendly policies, industrialized nations should have the willpower to transition to renewable energy sources. additionally, the eu has agreed to contribute at least 20% of its renewable energy resources. when the economy begins to expand, deforestation, water consumption, and carbon dioxide emissions begin to occur (chien, hsu, ozturk, sharif, & sadiq, 2022). however, the steady economy increases artificial environmental factors mostly cause this issue is the fundamental factor in the development of environmental quality, as numerous asean nations, such as indonesia, face significant environmental issues due to carbon emissions and are ranked third in air pollution. from 1990 to 2017, 166 countries gave evidence that countries that supported their energy resources with solar, wind, geothermal, and hydroelectricity resolved their environmental problem (chien et al., 2022; nasir, duc huynh, & xuan tram, 2019). as a result of shifting fuel prices and the environtofits of renewable energy sources, renewable energy sources are gaining importance in the industrial sector. more than 22 percent of the whole population is without power due to cable and grid station issues. between 2003 and 2014, biomass burning was responsible for 40 to 60 emergences in major southeast asian cities. as a result of the fire, the area encompasses the entire continent. southeast asia and the maexpands have been affected by an increase in carbonaceous chemicals, specifically black carbon. as a result, the absorption and dispersion of sunlight in the atmosphere may be reduced, resulting in reduced visibility. such incidents have disrupted regular activities such as commercial activity, transportation, and even schoolchildren's commutes. as environmental degradation is "the disintegration or deterioration of the environment caused by the use of assets such as air, water, and soil," it is clear that environmental degradation is a serious problem (huang, sadiq, & chien, 2021a). ecosystem destruction and the extinction of species. there are concerns with air pollution, water pollution, waste, and mailto:ddkhoa@vttu.edu.vn mailto:thanhnq@ueh.edu.vn agbioforum, 24(1), 2022 | 116 duong and ngo. — impact of energy consumption and agriculture growth on the environmental degradation environmental contamination in emerging nations. as hazardous gases and industrial waste also contribute substantially to environmental degradation. most businesses in undeveloped nations do not take the steps necessary to reduce air pollution; instead, they release toxic gases into the atmosphere and dispose of hazardous materials dire emergencies bodies of water (liu, yin, putra, & sadiq, 2022). according to khan et al. (2020), the climate risk index identifies the association of sincreasedn nations (asean) as one of the regions that has been severely impacted. according to this ranking, among the top 25 countries, myanmar, cambodia, thailand, vietnam, and the philippines represent the asean area. diverse researchers have expressed their position on this matter by recommending that countries establish proactive methods to address the harmful impact of agriculture growth and climate change, as these challenges are grave and require policies to make the economy of these nations sustainable (hussain, shahzad, & shafiq, 2020; nishimura, ambashi, iwasaki, & maeda, 2019). table 1 displays the agricultural gdp contribution of asean nations. as previously said, addressing climate change has become a major priority for asean states. population growth, which increases the use of vehicles, etc., poverty-related use of nonrenewable energy sources due to low cost, urbanization, economic factors such as industrialization, institutional factors, land degradation, air and water pollution, etc., are the few causes of environmental degradation. this environmental degradation has a fundamental impact on human health, biodiversity loss, ozone depletion, etc (huang, sadiq, & chien, 2021). consequently, it is crucial to address this issue, particularly in emerging nations. as a result, they decided to switch from relying on renewable energy production to relying on renewable energy production. as part of phase two of the asean plan of action for energy cooperation 2021-2025, asean states have developed an ambitious five-year sustainability strategy. as part of this agreement, asean energy ministers agreed to set a target of 23% of total renewable energy supply for the region and 35% capacity for asean by 2025. (kamarudin, anwar, chien, & sadiq, 2021; nasir et al., 2019; nathaniel, 2021; nawaz, azam, & bhatti, 2019). by 2025, this will require the addition of 35 to 40 gw of renewable energy capacity. all asean member states are now drafting legislation to facilitate the transition from nonrenewable to renewable energy sources table 1.2 agriculture share to gdp of asea region in 2018 (country wise) country gdp share (%) indonesia 12.5 malaysia 7.3 singapore 0.5 thailand 6.2 vietnam 14.3 laos 14.5 cambodia 16.3 myanmar 24.6 philippines 8.1 brunei 0.8 environment degradation can be reduced by planting more trees, reducing the use of machines that emit chlorofluorocarbons, reducing the use of fuels, using more efficient and less environmentally hazardous methods to generate electricity, treating toxic gases and waste from industries before releasing them so that they are less harmful to the natural environment, and controlling population growth by increasing public awareness. figure 1 depicts the consumption of renewable energy in asean. figure 1. renewable energy consumption in asean countries 7.63 9.38 10.87 12.36 0 2 4 6 8 10 12 14 2017 2018 2019 2020 renewable energy in asean (in exajoules) agbioforum, 24(1), 2022 | 117 duong and ngo. — impact of energy consumption and agriculture growth on the environmental degradation the current study fills a number of glaring gaps in the literature;1) highlights the crucial and delicate relationship between energy consumption and agricultural growth and environmental degradation, which has been discussed in the past but whose significance in the context of asean countries remains obscure. 2) nathaniel (2021) examined whether environmental deterioration has an impact on natural resources, economic development, etc. in asean, whereas the current study will focus on environmental degradation and rew energy and non-rew energy in the asean economy. 3) duc nha (2019) examined the relationship between environmental degradation and economic growth. this study will attempt to evaluate the multiple factors of energy consumption, including fossil fuel, electric power, energy input, energy use, and gdp, and their impact on co2 emissions in a sample of asean economies. 4) nasir et al. (2019) investigated the foreign development index and climate change, whereas the current study focuses on environmental degradation and its relationship with agriculture expansion and other forms of energy using the most recent data on the asean economy. 5) the framework of the current study consists of several energy, non-renewable energy, and environmental degradation factors, such as carbon dioxide emission, renewable energy consumption, fossil fuel energy consumption, electricity power consumption, energy input, energy use, and gross domestic product, which have not been studied simultaneously in the asean economy with the most recent data; the impact study fills the gap in a contextual manner. similarly, 6. in contrast, the. (2019) focused on resource depletion and its relationship to economic growth, whereas the current work evaluates the effectiveness of energy sources and agricultural growth in preventing environmental deterioration. 7) finally, belad and zrelli (2019) examined the identical constructs used in the study, but in the context of mediterranean nations. since the deficiencies are sufficient to necessitate research, the study helps in numerous ways. first, it may emphasize the significance of various energy. in contrast, the environmental damage. additionally, the study presents actual information addressing the relationship between agricultural expansion and environmental damage. thirdly, the study's findings motivate practitioners to rebuild their policies for environmental sustainability. the study may also aid scientists in identifying the benefits and downsides of renewable and nonrenewable energy in relation to environmental degradation and national economies, particularly in asean economies. this investigation consists of five stages. the introduction describes the topic in-depth and identifies any discovered gaps contextually. in the second phase of the study, the selected constructs are discussed in depth in light of prior research. the third phase covers the methodology portion, while the subsequent phase discusses in depth the study's findings. in the last phase, the debate is established by comparing the current findings to previous fragments of evidence. in addition, the study concludes with some conclusions and suggestions. 2. literature review the globe relies extensively on renewable and nonrenewable energy sources, which causes serious challenges and worries. in reality, the global community is also focusing on the potential reduction of environmental problems, energy security, and nonrenewable energy sources. in this situation: lee (2019) studied the dynamics of renewable energy use and its impact on economic growth and carbon emissions in specific nations. carbon dioxide is regarded as a global concern and issue that is causing environmental deterioration. due to the possible impact of diseases on humans in asean nations, environmental degradation concerns have been brought to the forefront. similarly, koengkan, fuinhas, and santiago (2020) demonstrated the connection between urbanization, economic growth, non-renewable energy, renewable energy, and carbon emissions in the common markets. it depends on the consumption of renewable energy how it could be consumed and how it affects the environment. therefore, consideration must be given to the practical ways to renewable energy consumption in asean nations (sadiq et al., 2022; zhao, zhang, sadiq, hieu, & ngo, 2021). these methods not only aid in the control of environmental degradation, but also in the improvement of the energy sector. as environmental degradation is the disintegration or deterioration of the environment caused using also focuses, water, and soil, it is a consequence of human activity. ecosystem destruction and the extinction of species. air pollution, water pollution, trash, and environmental degradation are problems in india (lisha & abdullah, 2021; sadiq et al., 2022). ge, wang, zhu, and ding (2017) described the projections and analyses of carbon dioxide emissions from companies as a result of energy consumption. to govern the consumption of renewable energy in a manner that has a minimal impact on environmental degradation, it is necessary to adopt sophisticated procedures. typically, governments are attentive to the investments generated by renewable energy technologies (tan et al., 2022; zhao et al., 2021). therefore, this technological advancement in the consumption and production of renewable energy sources must be managed appropriately. therefore, koengkan and fuinhas (2020) investigated the impacts and effects of transitioning to renewable energy, controlling idea emissions in industrialized nations. and improving the management of energy resources that emit carbon dioxide, which is hazardous to the environment, are crucial to the management of the organization as a whole. despite this, the constant and rising consumption of renewable energy has a detrimental effect on the surroundings of many nations. this continuance of renewable energy vastly increases timely attention to carbon dioxide's damaging effects on the environment (lan, khan, sadiq, chien, & agbioforum, 24(1), 2022 | 118 duong and ngo. — impact of energy consumption and agriculture growth on the environmental degradation baloch, 2022; oanh et al., 2021). the consistent use of renewable and nonrenewable energy sources has a lasting impact on environmental degradation. this is due to the burning of various material energy sources, which alters environmental levels and causes harm to both humans and animals. the global community has expressed concern on the usage of fossil fuels in creating energy sources (thuy, phuong dio, hoan, ninh, & thuy nga, 2021). in this context, pereira and pereira (2017) enumerated the methods for reducing carbon emissions that are most effective: carbon pricing, energy efficiency, and fossil fuel price restrictions. due to the abundant availability of energy resources, the use of energy sources in asean nations has expanded dramatically. different materials, such as fossil fuels, are emphasized more in energy resources because their consumption has had a significant impact on environmental degradation. similar to pintuma and renewable energy consumption2), pintuma and aunyawong (2021) and sebos (2022) evaluated the fractions of fossil fuel energy use that increasingly result in the production of carbon dioxide that negatively impacts the environment. this is a result of the emission of carbon dioxide gas from the combustion of fossil fuels. when fossil fuels are burned, several gases, such as carbon, are produced. therefore, henderson and sommer (2022) and ojogiwa (2021) elaborated on the impact of fossil fuel energy use on carbon emission in the energy sector. most asean nations are about using fossil fuels to create usage, which is detrimental to the environment. the planet's temperature has risen due to the intensive burning of fossil fuels, which produces the most effective carbon emissions sadeghieh (2019) highlighted the connection between economic expansion, fossil fuel usage, carbon emissions, and financial growth. due to the ever-present presence of carbon dioxide and the constant emergences of carbon dioxide, the ecosystems are disturbed. globally, companies are concerned about potentially impacting fossil fuel usage and their energy production. due to the combustion of fossil fuels, global environmental and socioeconomic factors have also contributed to the trend of growing carbon dioxide levels. the birth and development of technology have benefited the world thus far but have left the earth with hazardous radiation waves. animals and humans alike have several radio waves emissions caused when fossil fuels are burned using power. as a result, abokyi, appiah-konadu, tangato, and abokyi (2021) investigated the relationship between power use and production in relation to carbon emissions. in many nations, the power sector is the primary impediment to economic development and environmental stability. electricity consumption improves the financial status of every industry, but it also affects the state of the environment. similarly, turk, reay, and haszeldine (2018) evaluated the intensity of power systems that contribute significantly to carbon dioxide emissions and environmental deterioration. typically, energy generation relies on water, coal, fuel, oil, and numerous other substances that emit carbon dioxide. in asean nations, the generation and emission of carbon dioxide are deemed damaging to both human life and the environment. in this regard, khan (2019) examined the temporal carbon intensity in relation to renewable fossil fuel and power systems. the shift between renewable and nonrenewable energy usage is regarded as a crucial environmental factor. this is due to the high amount of carbon dioxide produced by the usage of electrical energy by several companies. in asean nations, electricity output has expanded significantly during the past several decades. abokyi et al. (2021) also examined the causal effects of industrialization, economic growth, power consumption, and carbon dioxide emissions. this manufacture utilizes energy resources and also produces carbon dioxide. on one hand, the consumption of nonrenewable energy promotes the verdict of electricity power, but on the other, it has an impact on the environment. in general, the electric power consumption supports the production and operations of different industries. the encouragement of electricity power consumption accelerates the expansion of industries but has a lasting impact by emitting carbon dioxide. nature has endowed the globe with several energy resources and has ordered them according to the environment. in the end, the energy consumption in the parent countries where these are generated or founded is environmentally sustainable. bigerna, bollino, and galkin (2021) emphasized the essential optimization of the balance between energy security and its import for environmental sustainability. this results from efficient technology that generates these energy resources in ways that do not affect the environment. however, certain restrictions are also imposed on energy consumption to ensure environmental sustainability. in addition, kryukov (2017) noted the environmentally hazardous substitution of equipment and technology imports in the energy sector. in asean nations, the import of energy is manifest in the generation of vast quantities of carbon dioxide, which contributes to environmental damage (moslehpelectric power consumption generally imports energy from mineral-rich nations and has a significant impact on their environment. therefore, deng, ma, zhang, and liu (2018) evaluated the energy trade's structural decomposition and extraction techniques that impact environmental sustainability. this is due to the advent of obsolete technologies used to produce energy that is imported from other nations and whose quality makes them unfeasible. imports of energy generate a substantial amount of carbon dioxide, which has a significant impact on the environment's viability and preservation. in addition, fal'tsman (2017) evaluated the military and energy industries owing to import substitution and its impact on carbon dioxide emissions. crude oil is the greatest illustration of a product that is imported from mineral-rich nations and utilized in cars and machinery that do not agbioforum, 24(1), 2022 | 119 duong and ngo. — impact of energy consumption and agriculture growth on the environmental degradation conform to oil quality standards (liu, lan, chien, sadiq, & nawaz, 2022). typically, the import of energy must be adjusted and constructed in ways that promote environmental sustainability. imported power plants for the purpose of energy consumption have a detrimental effect on the natural environment. despite the fact that petroleum products are the primary imports and extractions, the ecosystem faces destabilizing effects (liu, lan, et al., 2022). in several asean nations, persistent energy use has led to increased environmental challenges during the past few decades. there are numerous allocation measures for the efficient use of energy, which aid in mitigating environmental problems. godoy-shimizu et al. (2018) investigated. energy consumption generates office buildings, and the resulting carbon significantly impacts deterioration. developing and developed nations aid their industries by efficiently using carbon dioxide-emitting energy. this carbon dioxide emission is unquestionably managed at the end of the inadequate approach that developed countries use to sustain the environment (li et al., 2022). in addition, borén (2020) noted the environmental impact of the electricity busses' consistent noise, expense, and consequences on the sustainability of energy usage. energy is utilized in a variety of ways to support industry and humanity. the manufacture of many medicines and foods depends on energy utilisation. the total production is processed through the application and deployment of carbon dioxide-heavy technologies. moreover, in this context, he et al. (2019) examined energy consumption from multiple perspectives, including its use in water supply and its developing effect on environmental deterioration. this substantial creation of carbon dioxide is detrimental to the environment, and the energy demand constantly exacerbates this damage. due to the rise of carbon dioxide, the primary component of the environment that fluctuates regularly is the climate. similarly, juárez-hernández and sheinbaum pardo (2019) studied the irrigation industry's greenhouse gas emissions and energy consumption, as well as their environmental impact. this development depends on the world's high energy consumption, which generates greenhouse gases and smog. in addition to harming habitats and animals, excessive energy consumption contributes to carbon dioxide emissions. due to the development of minerals and the need for industry, energy consumption in asean nations has unquestionably risen (liu, lan, et al., 2022). as a result of the generation of carbon dioxide, environmental degradation has become a globally famous phenomenon. as a result of its dependence on renewable and nonrenewable energy use, carbon dioxide generation has a number of repercussions. it has effects on both the environment and the gross domestic product. before this, habimana, mnsson, and sjolander (2021) established the impact of emerging countries' real gdp and carbon dioxide emissions in attracting investments. the gross domestic product is a vital component of economic growth in asean countries. the economic prosperity of many nations depends on environmental stability, and environmental instability could be caused by the emergence of carbon dioxide emissions (lisha & abdullah, 2021). in addition, cialani (2017) identified the very influential relationships between international trade, gross domestic product, and carbon emissions on international commerce and growth. a substantial amount of investment is halted and reduced due to the deteriorating climate caused by greenhouse gases and carbon dioxide release. the globe examines the gross domestic product when deciding where to invest. the increasing problems associated with global warming have significantly influenced worldwide investment and business. ben jebli and hadhri (2018) investigated the dynamic relationship between international tourism, energy consumption, domestic products, and transport-related carbon emissions. this demonstrates that high levels of pollution caused by the rising usage of renewable and nonrenewable energy have environmental consequences. for investors, the sustainability and maintainability of the environment also affects the gross domestic product. (moslehpour, alfadly, et al., 2022) not only does a lower gross domestic product signal slower economic growth, but it is also related with a number of problems. abokyi et al. (2021) evaluated the relationship between population, energy consumption, carbon dioxide emissions, and gross domestic product in relation to environmental degradation. not only can variations in the gross domestic product have an effect on the environment, but they also affect carbon dioxide emissions. it is vital to foster economic expansion while prioritizing environmental stability. with environmental stability, the gross domestic product and economic growth should be dynamically expanded (moslehpour, chang, pham, & dadvari, 2022). the agriculture sector is expected to be the backbone of any nation's economy because it contributes significantly to gdp. the sector also provides for the nation's fundamental needs but could also contribute to its industrialization (bartoli, hamelin, rozakis, borzęcka, & brandão, 2019). it is suggested that this sector can play a critical role in the economy's growth, particularly in nations with a lower ratio of real income per capita, since it may prove useful in boosting the economy. ansari & khan (2018) claimed that there are several ways in which the expansion of agriculture might contribute to the economy. first, facilitates non-agricultural sector people and raw materials through food. second is the capacity to generate demand for quality output through the rural population. additionally, agriculture expansion might position the nation for export success and provide employment possibilities for the less educated and skilled, easing poverty (ding et al., 2016). however, in addition to its significance, the sector faces environmental concerns. ben jebli et al. (2017) reported that the agriculture sector is accountable for global co2 emissions due to its substantial agbioforum, 24(1), 2022 | 120 duong and ngo. — impact of energy consumption and agriculture growth on the environmental degradation consumption of fossil fuels. agriculture and forestry contribute 24 percent of global greenhouse gas emissions, according to pachauri et al. (2014). in addition, methane and co2 are responsible for 30% and 49%, respectively. the agriculture sector emits these three gases, methane, nitrous oxide, and carbon dioxide. the emissions are caused by chemical fertilizer, rice agriculture, and municipal trash. in contrast, one study found little support for the environmental kuznets curve between agriculture growth and co2 consumption in indonesia, malaysia, thailand, and the philippines (liu et al., 2021) 3. research methods this article investigates the impact of rec, epc, ffec, energy import, energy consumption, and gdp on carbon dioxide emissions in asean economies. however, the loa nation was excluded from the analysis due to inaccessible data. the secondary data from 1991 to 2020 have been collected from the wdi. the following expression for the study variable has been constructed and presented: 𝐶𝑂2𝑖𝑡 = 𝛼0 + 𝛽1𝑅𝐸𝐶𝑖𝑡 + 𝛽2𝐹𝐹𝐸𝐶𝑖𝑡 + 𝛽3𝐸𝑃𝐶𝑖𝑡 + 𝛽4𝐸𝑈𝑖𝑡 + 𝛽5𝐸𝐼𝑖𝑡 + 𝛽6𝐺𝐷𝑃𝑖𝑡 + 𝛽7𝐴𝐺𝑖𝑡 + 𝑒𝑖𝑡 (1) where; co2 = carbon dioxide emission t = time period i = country rec = renewable energy consumption ffec = fossil fuel energy consumption epc = electricity power consumption ei = energy import eu = energy use gdp = gross domestic product ag = agricultural growth the present study has taken the co2 emission as the primary variable of the study and measured the carbon dioxide damage (% of gni). additionally, the research has also taken the rec measured as the rec (% of total energy consumption), epc measured as the epc (kwh per capita), ffec measured as the ffec (% of total), and energy import measured as the energy import net (% of energy use) and energy use measured as the energy use (kg of oil equivalent per capita) as the independent variables. finally, the gdp has been taken as the control variable and measured as the gdp growth (annual percentage). table 1 shows the measurements table 1: variables with measurements variables measurement sources carbon dioxide emission carbon dioxide damage (% of gni) (behera & dash, 2017) renewable energy consumption rec (% of total energy consumption) (ozcan & ozturk, 2019) fossil fuel energy consumption ffec (% of total) (mensah et al., 2019) electricity power consumption electric power consumption (kwh per capita) (abdullahi et al., 2021) energy import energy import net (% of energy use) (murshed, mahmood, alkhateeb, & bassim, 2020) energy use energy use (kg of oil equivalent per capita) (verbič, satrovic, & muslija, 2021) gross domestic product gdp growth (annual percentage) (boukhatem & moussa, 2018) agriculture growth agriculture output per unit area uddin (2020) the page presents descriptive statistics by year that reveal the specifics of the structures concerning the years. in addition, the research runs descriptive statistics per nation that reveal the specifics of the constructs about countries. in addition, descriptive statistics were utilized to disclose the total number of observations, minimum values, mean values, standard deviations, and maximum values for each construct. in addition, the paper presents the correlation matrix that reveals the relationship between the constructs. the study concludes by applying the pp and adf tests to determine the unit root among the variables. the equation is as follows: 𝑑(𝑌𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑌𝑡−1 + 𝑑(𝑌𝑡(−1)) + ɛ𝑡 (2) the stationarity has been examined using pp and adf individually, and the individual equation for each variable is given as under: 𝑑(𝐶𝑂2𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐶𝑂2𝑡−1 + 𝑑(𝐶𝑂2𝑡(−1)) + ɛ𝑡 (3) 𝑑(𝑅𝐸𝐶𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑅𝐸𝐶𝑡−1 + 𝑑(𝑅𝐸𝐶𝑡(−1)) + ɛ𝑡 (4) 𝑑(𝐹𝐹𝐸𝐶𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐹𝐹𝐸𝐶𝑡−1 + 𝑑(𝐹𝐹𝐸𝐶𝑡(−1)) + ɛ𝑡 (5) 𝑑(𝐸𝑃𝐶𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐸𝑃𝐶𝑡−1 + 𝑑(𝐸𝑃𝐶𝑡(−1)) + ɛ𝑡 (6) 𝑑(𝐸𝐼𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐸𝐼𝑡−1 + 𝑑(𝐸𝐼𝑡(−1)) + ɛ𝑡 (7) 𝑑(𝐸𝑈𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐸𝑈𝑡−1 + 𝑑(𝐸𝑈𝑡(−1)) + ɛ𝑡 (8) 𝑑(𝐺𝐷𝑃𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐺𝐷𝑃𝑡−1 + 𝑑(𝐺𝐷𝑃𝑡(−1)) + ɛ𝑡 (9) 𝑑(𝐴𝐺𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐴𝐺𝑡−1 + 𝑑(𝐴𝐺𝑡(−1)) + ɛ𝑡 (10) finally, the ardl model has been used that exposed the short and long-run nexus among the variables. the ardl model has the characteristic that it is suitable when some constructs have no unit root at the level and others have no unit root at first difference. the equation for the ardl model is given below: ∆𝐶𝑂2𝑖𝑡 = 𝛼0 + ∑𝛿1∆𝐶𝑂2𝑖𝑡−1 + ∑𝛿2∆𝑅𝐸𝐶𝑖𝑡−1 + ∑𝛿3∆𝐹𝐹𝐸𝐶𝑖𝑡−1 + ∑𝛿4∆𝐸𝑃𝐶𝑖𝑡−1 + ∑𝛿5∆𝐸𝐼𝑖𝑡−1 + agbioforum, 24(1), 2022 | 121 duong and ngo. — impact of energy consumption and agriculture growth on the environmental degradation ∑𝛿6∆𝐸𝑈𝑖𝑡−1 + ∑𝛿7∆𝐺𝐷𝑃𝑖𝑡−1 + ∑𝛿8∆𝐴𝐺𝑖𝑡−1 + 𝜑1𝐶𝑂2𝑖𝑡−1 + 𝜑2𝑅𝐸𝐶𝑖𝑡−1 + 𝜑3𝐹𝐹𝐸𝐶𝑖𝑡−1 + 𝜑4𝐸𝑃𝐶𝑖𝑡−1 + 𝜑5𝐸𝐼𝑖𝑡−1 + 𝜑6𝐸𝑈𝑖𝑡−1 + 𝜑7𝐺𝐷𝑃𝑖𝑡−1 + 𝜑7𝐴𝐺𝑖𝑡−1 + ɛ𝑖𝑡 (11) in the above equation, δ1, δ2, δ3, δ4, & δ5 show the “short term coefficients” for the short-run association; in contrast, φ1, 𝜑2, φ3, φ4, φ5, & ɛ1 are shows the “long term coefficients” for the long run association. the article also applied the qardl model to analyze the association between the constructs. moreover, the qardl model provided consistent findings when a small sample was utilized. the qardl equation is mentioned below: 𝑄𝐶𝑂2𝑖𝑡 = 𝛼(𝜏)0 + ∑ 𝑏𝑖(𝜏)𝐶𝑂2𝑖𝑡−𝑖 𝑛1 𝑖=1 + ∑ 𝑐𝑖(𝜏)𝑅𝐸𝐶𝑖𝑡−𝑖 𝑛2 𝑖=0 + ∑ 𝑑𝑖(𝜏)𝐹𝐹𝐸𝐶𝑖𝑡−𝑖 𝑛3 𝑖=0 + ∑ 𝑒𝑖(𝜏)𝐸𝑃𝐶𝑖𝑡−𝑖 𝑛4 𝑖=0 + ∑ 𝑓𝑖(𝜏)𝐸𝐼𝑖𝑡−𝑖 𝑛5 𝑖=0 + ∑ 𝑔𝑖(𝜏)𝐸𝑈𝑖𝑡−𝑖 𝑛6 𝑖=0 + ∑ 𝑔𝑖(𝜏)𝐺𝐷𝑃𝑖𝑡−𝑖 𝑛7 𝑖=0 + ∑ 𝑔𝑖(𝜏)𝐴𝐺𝑖𝑡−𝑖 𝑛8 𝑖=0 + 𝜑1(𝜏)𝐶𝑂2𝑖𝑡−1 + 𝜑2(𝜏)𝑅𝐸𝐶𝑖𝑡−1 + 𝜑3(𝜏)𝐹𝐹𝐸𝐶𝑖𝑡−1 + 𝜑4(𝜏)𝐸𝑃𝐶𝑖𝑡−1 + 𝜑5(𝜏)𝐸𝐼𝑖𝑡−1 + 𝜑6(𝜏)𝐸𝑈𝑖𝑡−1 + 𝜑7(𝜏)𝐺𝐷𝑃𝑖𝑡−1+ + 𝜑7(𝜏)𝐴𝐺𝑖𝑡−1 + ɛ𝑖𝑡 (11) 4. findings of the study the research employs descriptives that reveal the construct's country-by-country specifics. the findings suggested that the philippines had the lowest concentration of carbon dioxide at 0.755%, while vietnam had the highest concentration. in addition, the lowest value of rec was 0.025 per cent in brunei, while the greatest value of rec was 73.913 per cent in cambodia. moreover, the data indicate that the lowest ffec value was 24.339 percent in cambodia, and the highest was 100.041 percent in brunei. in addition, the lowest epc value was recorded in cambodia at 131.427 percent, while the highest was recorded in brunei. in addition, the data revealed that the minimum ei value in brunei was -569.662 percent, while the maximum ei value in the philippines was 98.226 percent. in addition, myanmar had the lowest eu value at 314.775 percent, while brunei had the highest eu value at 7881.521 percent. finally, the minimum gdp value was 1.333 percent in brunei and 6.935 percent in cambodia. table 3: descriptive statistics (country) co2 rec ffec epc ei eu gdp ag brunei 1.725 0.025 100.041 8411.457 -569.662 7881.521 1.333 2.7 cambodia 1.205 73.913 24.339 131.427 25.651 340.703 6.935 31.53 indonesia 2.379 39.204 63.062 569.619 -83.872 773.099 4.633 33.18 malaysia 2.613 5.185 95.482 3369.940 -38.253 2474.719 5.308 26.09 myanmar 2.214 78.750 31.992 128.863 -21.732 314.775 8.481 20 philippines 0.755 0.543 94.875 7816.946 98.226 5167.799 5.347 30 singapore 1.280 32.382 57.701 569.862 47.893 475.792 4.164 0.5 thailand 2.306 22.862 78.744 1940.206 42.187 1543.854 3.812 43.18 vietnam 3.336 47.193 56.771 775.166 -18.879 523.359 6.719 13.96 the research also used descriptives to reveal the properties of each construct. the results indicated that the mean value of co2 was 1.979 per cent, while the average value of rec was 33.340 per cent. in addition, the outcomes also exposed that the average value of ffec was 67.001 per cent, while the mean value of epc was 2634.607 per cent. furthermore, the results indicated that the mean value of ei was -57.605 per cent, while the average value of eu was 2166.180 per cent and the average value of gdp was 5.192 per cent. table 4 shows the findings. furthermore, the article shows the correlation matrix that exposed the association between the constructs. the results revealed that the rec has a negative while epc, ffec, energy import, energy use, and gdp positively impact the co2 emissions in asean countries. table 5 shows these results. table 4: descriptive statistics variable obs mean std. dev. min max co2 270 1.979 0.959 0.291 4.508 rec 270 33.340 29.163 0.001 91.119 ffec 270 67.001 27.323 13.813 100.318 epc 270 2634.832 3229.607 0.597 11953.152 ei 270 -57.605 200.646 -849.555 99.085 eu 270 2166.180 2555.094 248.693 9837.472 gdp 270 5.192 3.932 -13.127 14.526 ag 270 22.34 15.456 2.75 45.67 table 5: matrix of correlations variables co2 rec ffec epc ei eu gdp co2 1.000 rec -0.097 1.000 ffec 0.010 -0.971 1.000 epc 0.271 -0.763 0.758 1.000 ei 0.012 0.297 -0.339 -0.408 1.000 eu 0.241 0.726 0.738 0.949 -0.595 1.000 gdp 0.075 0.389 -0.353 -0.349 0.258 -0.352 1.000 ag 0.736 0.345 0.521 0.321 0.612 0.544 0.756 1.000 agbioforum, 24(1), 2022 | 122 duong and ngo. — impact of energy consumption and agriculture growth on the environmental degradation the research has applied the pp and adf tests to investigate the unit root among the variables. the finding exposed that the ffec, ei, and gdp have no unit root at the level, and co2, rec, epc, and eu have no unit root at first. table 6 presents the detail of the outcomes. table 6: unit root test adf pp series level first difference level first difference co2 -1.429 -5.721*** -0.910 -5.276*** rec -1.192 -4.923*** -1.422 -4.729*** ffec -3.232** -7.101*** -4.192*** -7.493** epc -1.197 -5.007*** -1.320 -3.092** ei -2.763* -7.109*** -2.519** -5.028** eu -1.295 -6.199*** -1.201 -3.369*** gdp -3.268*** -7.104*** -4.299*** -7.371*** ag -1.446 -5.342*** -0.823 -5.324*** the panel qardl results indicate the negative relationship between renewable energy consumption with carbon dioxide emissions. however, other factors such as agriculture growth, fossil fuel, gdp, electric power, energy import and energy usage are positively correlated with co2 emissions in the context of asean economies. the findings reveal that the negative association of rec and co2 emission is observed in 1 to 8 quantiles and 1 to 7 quantiles in the short run and long run, respectively. the outcome also revealed that fossil fuel energy form is positively correlated with co2 emissions in 1 to 6 and 8 quantiles in case of the short and long run. in the case of electric power consumption, a positive relationship was observed in 1 to 7 quantiles in the short run case and 1 to 6 and 8 quantiles in the long run case. energy import and co2 are positive in 1 to 6 and 9 quantiles in short run context and 1 to 6 in long run case. finally, in the case of agriculture growth, the positive association with co2 is observed in 1 to 4 and 6 to 7 quantiles in the short run case and in the long run case, 1 to 5 and 8 to 9 quantiles. table 7: panel qardl model rec ffec epc ei eu gdp ag panel a: short-run coefficients q0.1 -0.40* 0.43* 0.23* 0.24* 0.43** 0.42* 0.34** q0.2 -0.39** 0.20** 0.42** 0.31* 0.20* 0.61** 0.62* q0.3 -0.29* 0.81* 0.51* 0.39* 0.27* 0.31* 0.32* q0.4 -0.10* 0.69*** 0.29* 0.71** 0.59* 0.76** 0.67* q0.5 -0.72*** 0.61* 0.51** 0.81** 0.73* 0.21 0.41* q0.6 -0.71** 0.72** 0.47* 0.43* 0.85** 0.35* 0.54** q0.7 -0.90*** 0.12 0.53** 0.20 0.09 0.48* 0.12 q0.8 -0.56** 0.27* 0.31 0.10 0.17 0.04 0.15 q0.9 -0.21 0.02 0.03 0.52* 0.19 0.17 0.18 panel b: long-run coefficients q0.1 -0.52* 0.63* 0.91** 0.43** 0.66** 0.47* 0.64** q0.2 -0.83** 0.49** 0.43* 0.20* 0.32* 0.63** 0.23* q0.3 -0.29* 0.72** 0.62* 0.28* 0.19* 0.41* 0.18* q0.4 -0.74** 0.17* 0.34* 0.38** 0.24* 0.33* 0.27* q0.5 -0.61** 0.50* 0.71* 0.26** 0.71** 0.61* 0.65** q0.6 -0.34* 0.20* 0.42** 0.39* 0.23* 0.12 0.24* q0.7 -0.29* 0.13 0.13 0.12 0.21 0.06 0.29 q0.8 -0.12 0.53* 0.22* 0.11 0.11 0.53* 0.14 q0.9 -0.04 0.13 0.07 0.02 0.23* 0.33* 0.34* panel c: diagnostics ad. r square 0.45 reset 1.43* lm 0.99 5. discussions the results suggested that renewable energy consumption is negatively associated with environmental damage. these results are consistent with sharif et al. (2020).'s findings, which indicate that as the use of renewable energy for supporting infrastructure of commercial or residential buildings and other machines increases, co2 emissions decrease, as this reduces the use of fossil fuels such as coal, oil, and gas, or electricity generated from fossil fuel combustion, which increases co2 emission. consequently, the usage of renewable energy helps combat environmental damage. these findings are supported by adebayo and kirikkaleli (2021). they demonstrate that when renewable energy sources are favored over nonrenewable energy in an economy for heating and lighting or to generate motion in technologies and tools, there is a significant decrease in co2 emissions, and the problem of environmental degradation can be addressed. the results suggested that using fossil fuels for energy is positively associated with environmental degradation. these results are consistent with asongu, agboola, alola, and bekun's (2020) findings that in countries where commercial units rely heavily on fossil fuels to run heavy machines or plants to achieve competitive goals and make agbioforum, 24(1), 2022 | 123 duong and ngo. — impact of energy consumption and agriculture growth on the environmental degradation progress, co2 emissions are found in high quantities, and there are negative changes in environmental conditions. these findings are corroborated by gokmenoglu and sadeghieh (2019), who assert that fossil fuels are carboncontaining compounds that emit carbon particles when burned. after being released, they combine with oxygencontaining air to generate co2 emissions. consequently, the utilization of fossil fuels for energy promotes environmental damage. the results demonstrated a correlation between agricultural expansion and environmental damage. these findings are consistent with uddin's (2020) assertion that, as agricultural output rises, numerous agricultural techniques are employed to expedite the process. consequently, it is ultimately responsible for co2 emissions that cause environmental deterioration. when agriculture expands, it contributes a larger share to a nation's gdp, boosting economic growth. however, as a result, environmental difficulties arise since the ecosystem eventually undergoes negative changes. the findings demonstrated a correlation between electrical energy usage and environmental damage. these results are consistent with rahman's (2020) finding that when the use of electricity increases in a country, there is a proportional increase in pollution emissions, such as co2 emissions because most electricity is generated through the consumption of fossil fuels or nuclear power, which are the largest sources of co2 emissions. therefore, the environment is negatively affected when electrical energy consumption rises due to an increase in residential or commercial activity. these results are also supported by bello, solarin, and yen (2018), who found that even though the use of electricity is considered to be the safest approach compared to the consumption of fossil fuels as the traditional source of energy, it still emits co2 during the transfer process when converting to heat energy. increased co2 and heat emissions into the atmosphere alter the climate and degrade the environment and quality of natural resources. the findings revealed a correlation between energy consumption and environmental damage. these findings are corroborated by muhammad, khan, khan, and khan (2021). they theorize that nearly all forms of energy affect environmental quality, albeit in some places more so than in others. the kind of energy consumed dictates its environmental effects. when nonrenewable energy sources are exploited in an economy, co2 emissions rise, and negative environmental consequences arise. due to the reduction in co2 emissions, the use of renewable energy sources has the least negative impact on the environment. these outcomes are likewise corroborated by h. according to wang (2022), locations where the usage of energy sources is increasing rather than relying on nature or manual power for heating, lighting, and cooling, as well as carrying out other procedures that require force or power, have large co2 emissions. the results demonstrated a negative relationship between energy imports and environmental damage. these results concur with gyamfi, ozturk, bein, and bekun's (2021) finding that energy sources grow as a country's energy imports increase. these resources can be employed whenever necessary for economic or domestic purposes, increasing the country's co2 emissions and degrading its environment. these findings are corroborated by kahouli, miled, and aloui's (2022) examination of the effects of energy imports on environmental quality. this study hypothesizes that nations that purchase fossil fuels from other nations to meet their energy demands boost their utilization of technologies and industrial practices. in this circumstance, national co2 emissions are more than in the past. according to the findings, sdg is positively associated with environmental damage. these outcomes are consistent with j. wang and dong (2019) demonstrate that when a nation's gdp rises, its industrial methods and processes improve while its energy consumption rises. where technology and energy sources are heavily utilized, co2 emissions are high and environmental conditions deteriorate. consequently, rising gdp adds to environmental damage. 6. implications the consequences of this work are both theoretical and empirical. it has theoretical significance due to its contributions to the environmental quality literature. it investigates the effects of diverse energy sources and agricultural expansion on environmental degradation. the role of renewable energy consumption, nonrenewable energy consumption, and the gross domestic product in environmental degradation has been addressed in a prior study, but at various times. this work contributes to the existing body of knowledge by initiating the simultaneous description of the effects of renewable energy consumption, nonrenewable energy consumption, and gdp on environmental degradation. in addition, this is the first time that asean economies have been picked as the focal point for researching the effects of various energy types and agricultural expansion on environmental degradation. different types of energy are consumed in great quantities for residential and business uses in developing nations. this research aids authorities in setting policies addressing the use of rec to reduce co2 emissions. this report is the best resource for environmental regulators and economists since it details the elements that raise co2 emissions and lead to environmental damage. in addition, it emphasizes that they are capable of overcoming co2 emissions and environmental destruction. 7. conclusions and limitations the study aimed to examine the effects of renewable and nonrenewable energy on environmental deterioration; hence, the implications of various energy forms and agricultural expansion on environmental degradation were agbioforum, 24(1), 2022 | 124 duong and ngo. — impact of energy consumption and agriculture growth on the environmental degradation analyzed. it is believed that the asean sample will collect data on renewable energy consumption, fossil fuel energy consumption, electric power consumption, energy import, energy use, gdp, and co2 emissions, which are indicative of environmental degradation. the empirical research demonstrated a positive relationship between ffec, epc, ei, gdp, and eu, but a negative relationship between renewable energy use and environmental deterioration. the results demonstrated that the tendency of common people and commercial entities to consume renewable energy for fuel purposes minimizes the usage of dirty energy and its negative effects on the environment. reduced co2 emissions and consumption of nonrenewable energy protect the environment from degradation. according to the findings, fossil fuels increase the amount of carbon in the atmosphere. due to oxygen in the air, this carbon is converted into co2, and the environment becomes contaminated. high electricity consumption also increases the emission of hazardous gases such as co2 and degrades environmental conditions. in addition, the data demonstrated that an increase in energy use, whether renewable or nonrenewable, generates toxic substances, smoke, fumes, chemicals, and wastes. as a result, the increase in energy imports increases domestic energy consumption, and there may be co2 emissions. the primary sources of co2 emissions are technology and energy consumption, and the increase in gdp growth increases the use of technologies and energy. therefore, when gdp growth increases, carbon dioxide emissions harm the environment. although this essay has theoretical and empirical consequences, it is subject to certain restrictions. these restrictions can be eliminated by modifying the current study. this study illuminates the effects of renewable energy consumption, fossil fuel energy consumption, electric power consumption, energy import, energy consumption, and gdp on environmental degradation. it does not consider the geographical peculiarities, technical advances, and eco-friendly campaigns that significantly impact environmental degradation. this study must be replaced with one that includes these elements for the examination of environmental degradation. in addition, evidence from asean economies was used to investigate the relationship between renewable energy consumption, fossil fuel energy consumption, electric power consumption, energy import, energy use, and gdp and environmental deterioration. consequently, the present investigation has limited implications. to increase the study's credibility, future writers must consider regional elements from around the globe. funding: this research is partly funded by university of 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(2021). testing green fiscal policies for green investment, innovation and green productivity amid the covid-19 era. economic change and restructuring. doi:https://doi.org/10.1007/s10644-021-09367-z agbioforum, 23(2): 102-112. ©2021 agbioforum social capital, agriculture extension services and access of resources toward innovation adoption in household farming in malaysia rida shibli al-ahliyya amman university, hourani center for applied scientific research email: r.shibli@ammanu.edu.jo sobhia saifan al-ahliyya amman university, hourani center for applied scientific research email: s.saifan@ammanu.edu.jo mohd shukri ab yajid management and science university email: shukri@msu.edu.my https://orcid.org/0000-0001-5688-4392 ali khatibi management and science university email: alik@msu.edu.my https://orcid.org/0000-0002-2531-7720 s.m. ferdous azam management and science university email: drferdous@msu.edu.my https://orcid.org/0000-0002-0001-3595 the objectives of the researcher were to find out the impacts of social capital, extension services and access of resources on innovation adoption in household farming, for which, a major mediating impact of human capital has been considered as well. the target population of the researcher was a subsector of the agricultural sector in malaysia, which is household farming sector. the researcher performed detailed review of literature and then adopted research design for this study having quantitative research method, positivist research philosophy, deductive research approach and cross-sectional time horizon. moreover, from the target population, a sample of 330 individuals is selected based on purposive sampling technique. the researcher has collected the data with the help of selfadministered questionnaire-based survey and 323 valid responses have been obtained by the researcher. the collected data is arranged and analyzed with the help of microsoft excel and spss software, with the application of confirmatory factor analysis and regression analysis. the results propose significant impacts of extension services and access of resources on innovation adoption in household farming, and the human capital significantly mediates the relationship present among social capital, extension services, excessive resources, and innovation adoption in household farming as well. however, the impact of social capital on innovation adoption in household farming has been found to be insignificant. the study is significant for considering a subsector in the agricultural sector of malaysia, and it is also significant and novel for considering diversified factors while analyzing the innovation adoption in household farming. keywords: social capital, agriculture extension services, access resources, innovation adoption, household farming 1. introduction innovation and investment in large businesses are often reduced due to social political and economic factors by parties that are small sized. the factors that affect the innovation can be political social and economic. the small holders participation in large commodity change that operate worldwide decides the innovativeness of a whole sector (al mamun, muniady, yukthamarani, noor raihani binti et al., 2016). as compared to large multinational companies the system is more effective when small companies adopt innovative techniques by minimal input in terms of capital machinery and other resources (kitchen & marsden, 2009; marsden, 2013). but there is a possibility that contrary to the benefits of following this method small companies tend to follow models given by large multinational corporations respective of the large inputs or investments required to be a part of that system (tscharntke, clough, wanger, jackson et al., 2012). in practical research finding states that both trends have not yet been followed. the small companies or households, as in various developing countries, are not trying to be innovative neither by following social intensification nor by agro-ecological models (feintrenie, schwarze, & levang, 2010; jerneck & olsson, 2013). the path or method followed by small household-based firms is not unified. different forms are trying to follow different ways and not being able to excel in one form to achieve innovativeness. a major limitation has been that both these paradigms have not been properly defined. malaysian palm oil industry has been facing a lot of pressure from western ngos and clients to work on their industry sustainability and innovativeness. the first step towards betterment is to define the both paradigms of innovativeness (international, 2007) . not only understanding of different paradigms of innovativeness can help protecting the rights of communities of independent small household firms but also social justice is imperative for achieving the objective (majid cooke, 2012; pye & bhattacharya, 2013). contrary to this in malaysia small household firms have been widely criticized for not being completely engage with initiatives taken by the productivism in the economy (baskett, jacquemard, durand-gasselin, suryana et al., 2007; teoh, 2010). this research aims to find how social capital, agriculture extension services, and access of resources help farming households in malaysia to improve adoption of innovation. this paper would also highlight how human resources helps build a mechanism between social capital, agriculture extension services, access of resources and innovation adoption in malaysian context. malaysia has a total of about 645,136 smes al mamun et al. (2016) that contribute a lot to the economy of the current developing country. to improve the economic condition of the country the situation of the small household farming businesses should be improves by encouraging them to adopt new and innovative technologies, techniques, and methods. hence, the factors that play the most crucial role in achieving the objective must be determined and analyzed. r.shibli@ammanu.edu.jo s.saifan@ammanu.edu.jo mailto:shukri@msu.edu.my https://orcid.org/0000-0001-5688-4392 mailto:alik@msu.edu.my https://orcid.org/0000-0002-2531-7720 mailto:drferdous@msu.edu.my https://orcid.org/0000-0002-0001-3595 agbioforum, 23(2), 2021 | 103 shibli, saifan, yajid, khatibi and azam. — social capital, agriculture extension services and access of resources toward innovation … the data given by al mamun et al. (2016) in his research paper states that about 97.3 percent are small and medium enterprises out of the total businesses running in malaysia. moreover, the small and medium enterprises can be divided into five sectors. the sectors are services mining construction agriculture and manufacturing. malaysia is currently a developing country trying to achieve the status of a developed country for that it is trying to improve the economic and social condition of its small households that have low income. video policies have been formed to improve the economic growth and reduce the inequality in terms of income skill and development, which is the purpose the government, is focusing on betterment of small household firms. organizations have been formed to improve the condition of innovation in the industry. these organizations aim to provide social capital, ease the access to resources and providing agricultural extension services. sustainable livelihoods can be achieved or captured when the basic idea about social norms and social bonds has been cleared in the minds of the people (pretty & ward, 2001). originally the idea of social capital and its role wasn’t very refined and clear when it was proposed by jacobs (1961) it later passed through numerous developmental stages to have come in its present form. pretty and ward (2001) explains that social capital helps in encouraging cooperation by boosting the confidence of the people to investment their money, time, and efforts in new collective ideas. social capital decrease resource degradation in an economy. without the concepts of social capital people usually prefer to make investments in ideas of private interest ignoring the concept and need for social development and well-being. gibbs (1990) defines social structure as a proper structure formed to increase the happening of productive activities in an economy by forming ‘relations between actor and among actors. this formed social structure and organization are taken as resources or social capital by the individuals (bromley, 1993). in development of the agriculture and farming sector in a country a huge part is dependent on the agriculture extension services. the face of agriculture extension services is different in case of each country (david & samuel, 2014). the goals, objectives, and actions related to agriculture extension services are largely dependent on the government of a country. the goals can have very diversified range such as improving rural livelihood, improving natural resource management, building social capital, empowering farmers, and national food security (swanson & rajalahti, 2010). david and samuel (2014) explains that in malaysia, as a requirement for living in 21st century, the extensions must be based on defining and devising different mechanisms to reach farming small households. other than that extension should ease the way for collaborations, improving human infrastructure, and catalysts. the way the present extensions in malaysia are formed and working needs to be modified periodically as per the change in environment and need for innovation. a rather linear approach for extensions in used which lets the opinions of the farmers left out. however, the basic purpose of agriculture services extension is to reduce the gap between farming practices used at present and the new research that has been published. furthermore, extension services itself provides the human resources, the frontline workers, to directly participate in the process of farming and build strong collaborative relation and understanding with farmers (terblanche, 2005). a full extensive review of the literature has been done to understand the variables and their relationships. afterwards the methodology, data collection and analysis, results, and conclusions drawn from them has been given in detail. 2. literature review 2.1. theory of social capital social capital is the network of the people who live and work in a common community and thus contribute to the effective functioning of their community. this depends on the effective functioning of the social groups in which the individuals share a common sense of identity, mutual understanding, norms, values, and trust. social capital is said to be the main force to measure the effective functioning of a community. social capital is the reason behind the cooperation and mutual support in the social groups that make a community. this turns out to be effective in dealing and combating with social disorders which are inherent to the modern societies, among which crime is said to be one of the most important social disorders. social capital focuses on the specific benefits to the society in which the flow of trust, information and cooperation among the social groups that form the social networks (lin, 2008). norms of reciprocity and trustworthiness that are part of social groups and arise from the social capital. the idea of social capital enables the people to cooperate with each who are part of a society. however, another aspect of the social capital also exists in the literature. the authors have related the social capital towards the inequality, direct and indirect employments of social connections (kreuter & lezin, 2002). therefore bridging of social groups in social capital is of great importance otherwise it can lead to the isolation of social groups and adverse consequences (portes, 2014). 2.2. social capital and innovation adoption in household farming social capital is the concept that of shared values and network of relationships that exists between the people who work in the same community, and thus the achievement of their purpose and effective working of the community is achieved (ab yajid, 2020). social capital is linked to development and the economic prosperity which enables the formation of new strategies (woolcock & narayan, 2000). literature focuses on three main dimensions of the social capital, network, norms, and trust in the inter relations that make the society and contribute towards the effective functioning of the society. studies have shown that the behavior of the farmers towards the adoption of the new technologies is positively related to the social capital. the positive relation between the social capital and development of the community also reflects the contribution of the social capital towards the economic development. strengthened social capital leads to the flow of information which therefore enhances the adoption of new technologies (sandefur & laumann, 1998). studies have shown that social capital exerts noticeable influence agbioforum, 23(2), 2021 | 104 shibli, saifan, yajid, khatibi and azam. — social capital, agriculture extension services and access of resources toward innovation … on the farmers in their participation towards the adoption of new technologies. their norms and trust towards the concerned authorities also shapes their trend and level of interest in the adoption of new technologies. 2.3. mediating role of human capital in relation between social capital and innovation adoption in household farming human capital is the term regarded for the experience, abilities, creativity, and skill of the workers. social capital is considered as a deciding factor which contributes towards the development and economic boost of the community. however human capital in return also plays a mediating role in this aspect. the stronger and greater the human capital is more developed social capital is . human capital contributes in the development of the social capital as the individual skill, experience and abilities of members of the community contribute towards the development and efficient working of the community (goldin, 2016). studies have shown that participation of the farmers towards the innovation technology adoption in the household farming techniques is significantly dependent on the human capital which also influences the social capital. the adoption of new technologies is greatly dependent on the skill, education and experience of the related group of people (davenport, 1999). therefore, to introduce a new technology or to study the behavior of adoption of new technology in the farmers human capital and social capital are the prime factors in this regard. 2.4. extension services and innovation adoption in household farming agriculture extension services aims to educate and guide the farmers regarding the farming techniques. it also aims to educate and provide adequate information to the farmers regarding the hazards that crops, and farmers are vulnerable to and create awareness about the environmental hazards. the main aim behind this extension service is up bringing of the life style of farmers and introducing new farming techniques to ease their life and bring more fruitful outcomes (labarthe, 2009). agents of agriculture extension service introduce the new scientific techniques of farming the farmers, so that they can adopt them and make their farming more productive. agriculture extension services also aims to at introducing the innovative technological farming methods in the house hold farmers to also enhance their farming outcomes that ultimately strengthens the economic outcomes of their farming techniques (sarker & itohara, 2009). providing quality information to the household farmers to adopt the innovative, novel scientific farming practices proves to be positive enough towards the household farming. however, agriculture extension service plays an effective role in bringing the household farmers towards the innovative adoption of the farming practices. 2.5. mediating role of human capital in relation between extension services and innovation adoption in household farming human capital in the farmers plays a pivotal role in determining the farming practices being observed and ultimately towards the farming outcomes. skilled and educated farmers have a different perspective towards the adoption of the farming techniques (maffioli, ubfal, vazquez-bare, & cerdan-infantes, 2013). human capital is regarded as the ability of the farmers to tackle with the situation and produce the most fruitful outcomes from the farming practices by applying their knowledge and skills. human capital actively contributes towards the perception of the farmers towards the knowledge and information being provided by the agents of the agriculture extension service (barro, 2001). educated and skilled farmers with high literacy adopt the ideas and information provided by the agents and have the attitude to adopt that information. agriculture extension services have become a norm across the world to introduce new scientific and technological farming techniques in the farmers to enhance the livelihood of farmers and also make the farming techniques more productive (huffman, 2001). human capital plays a mediating role in this regard. which motivates the farmers and their perception towards the adoption of the new innovative farming techniques which are introduced by the agents of the agriculture extension service. agriculture extension service proves to be useful in introducing new innovative techniques to farmers. 2.6. access to resources and innovative adoption in household farming farmers across the world are considered as the backbone of the agriculture sector and a blessing to the entire humanity as they are responsible for the production of food. to enhance the production of food and productivity of the agriculture sector it is important to enhance the livelihood of the farmers as well as to provide them with the enough resources so that can produce the most productive outcomes from the farming techniques. ensuring that farmers are financially stable enough and also have the access to resources also falls in the responsibility of the government and other concerned authorities (oyinbo, chamberlin, vanlauwe, vranken et al., 2019). farmers must also be educated and guided enough regarding the new innovative techniques of farming, to ensure fruitful outcomes. adoption of innovative techniques of farming in the farmers of household levels of farms providence of enough resources is the first step on the ladder leading to adoption of innovative farming techniques (mei, li, yu, li et al., 2020). importance of access and correct use of the resources in the farmers is of prime importance when the use of innovative techniques is being studied. 2.7. mediating role of human capital in relation between access to resources and innovation adoption in household farming: it is of primary importance to provide the farmers with enough resources to farmers to ensure productive farming techniques. as the productive farming is related to economic prosperity of the countries especially in the regions of world where agriculture contributes to maximum extent in the gdp of countries. however, in this regard human capital is also of great importance and its significance is also undeniable. human capital is agbioforum, 23(2), 2021 | 105 shibli, saifan, yajid, khatibi and azam. — social capital, agriculture extension services and access of resources toward innovation … regarded as the skill, experience, creativity, and the education of the farmers that they apply to make their farming techniques more fruitful. with the access to resources, correct use of these resources involving the skill of the farmers is the major force that leads to the farm productivity (foster & rosenzweig, 1995). resources need to be utilized by the farmers in the most efficient way to make their best use. ensuring the effective use of resources, human capital plays a mediating role in this regard and thus lead towards the positive behavior of the farmers towards the adoption of new technologies (rustamovich, musaevich, zaripbaevich, mavlonovich et al., 2020). human capital also ensures the flow of information, which induces the positive behavior in the farmers to adopt the new scientific and innovative farming techniques. the following hypothesis can be generated for this study: h1: social capital effects the innovation adoption in household farming. h2: human capital plays a mediating role in relation between social capital and innovation adoption in household farming. h3: extension services effects the innovation adoption in household farming. h4: human capital plays a mediating role in relation between extension services and innovation adoption in household farming. h5: access to resources effects the innovation adoption in household farming. h6: human capital plays a mediating role in relation between access to resources and innovation adoption in household farming. figure 1: theoretical framework 3. research methodology 3.1. research design in this research, the applied research method is the quantitative research method as the researcher has the objective to analyze the impacts of social capital, extension services and access of resources on the innovation adoption in household farming quantitatively (auer, beretvas, colton, hill et al., 1977; crossan, 2003). for this purpose, quantitative data is retrieved and then it is analyzed with the help of quantitative tools and techniques, in order to find out that how social capital, extension services and access of resources can influence innovation adoption in household farming (etikan, musa, & alkassim, 2016). quantitative research method is preferred by various researchers in the past studies as well, where the major objective is to quantitatively analyze the impacts of independent variables on the dependent variables (holden & lynch, 2004; kenneth, 2000). the adopted research philosophy is the positivist research philosophy, and it is adopted by the researcher as the major objective is to keep the personal bias and opinion out of the interpretation of the outcomes of this research (mkansi & acheampong, 2012). the researcher has the objective to base the results completely on the collected and analyzed data, and to keep the personal interference to a minimum level. so, in the previous studies, where the researchers have the objective to keep the personal interference, opinion and buyers to a minimum level, the preferred and adopted research philosophy is positivist research philosophy, as it fulfills these objectives (östlund, kidd, wengström, & rowa-dewar, 2011; park & park, 2016). furthermore, the utilized the approach of research is the deductive research approach, following which, the researcher has first performed literature review, resulting in the formulation of statements of hypothesis, then relevant data is collected and analyzed by the researcher. as a result, according to the outcomes, the hypothesis statements are accepted or rejected (quah, 1993). so, along with this structure of research, the most suitable and applicable approach of research is the deductive research approach which allows the researcher two later on apply the results of the research on the whole population as well (rutberg & bouikidis, 2018; saunders, lewis, thornhill, & bristow, 2015). lastly, the time horizon of this research is cross sectional time horizon as the data is collected by the researcher for one time only and a onetime phenomenon is studied by the researcher with the help of that collected data, so the most suitable time horizon of research is the cross-sectional time horizon (soiferman, 2010). in the previous studies as well, where the researcher has the objective to study a phenomenon for one time only or the researcher has the objective to analyze the impacts of independent variables on dependent variables, on the basis of a onetime phenomenon, the preferred and applied time horizon has been observed to be cross sectional time horizon (suen, huang, & lee, 2014; tongco, 2007). social capital extension services innovation adoption in household farming human capital access of resources agbioforum, 23(2), 2021 | 106 shibli, saifan, yajid, khatibi and azam. — social capital, agriculture extension services and access of resources toward innovation … 3.2. population and sampling the population in focus of the researcher is a subsector of the agricultural industry in malaysia, which is household farming, however, as it is not possible for the researcher to conduct a study on the whole population, so, a sufficient sample is taken out from this population, in order to proceed with the procedures of the research (crossan, 2003). the most suitable sampling technique for this research is the purposive sampling technique, as this technique helps the researcher to find out and select the sample according to the judgment of the researcher and the objectives of the specific research (crossan, 2003). this similar sampling technique is also proposed by various previous studies, where the researchers have the objectives to keep the sample of the study very relevant to the research objectives and the judgment of the researcher (woiceshyn & daellenbach, 2018; zahra & covin, 1995). so, with the help of this sampling technique, a sample of 330 individuals is selected for this study. the sampling frame is the subsector of the agricultural industry in malaysia, which is household farming sector, whereas the sampling unit is one individual from the respective sector. 3.3. data collection and procedures the tool for data collection is a structured questionnaire, and the data is collected with the help of self-administered questionnaire-based survey (etikan et al., 2016). in total, a sample of 330 individuals is targeted whereas, only 323 valid responses are obtained by the researcher. all the statements of the questionnaire are measured on a fivepoint likert scale. after obtaining the data, the researcher has arranged the data in the software microsoft excel, so that it can be analyzed later. 3.4. measures there are seven measures of social capital, which have been adopted from the study of hunecke, engler, jararojas, and poortvliet (2017), there are 4 measures that are adopted for extension services, and these are adopted from the study of hunecke et al. (2017). moreover, there are three measures of excess of resources and five measures of human capital that are adopted from the study of hunecke et al. (2017), and similar measures are adopted by the study of hunecke et al. (2017). lastly, there are three measures of innovation adoption in household farming, which are adopted from the study of hunecke et al. (2017), as adopted by hunecke et al. (2017). 3.5. data analysis tools and techniques the arranged data is imported to the software spss, and the data is analyzed in this software with the help of the application of different analysis techniques. the applied techniques and tests involve demographical analysis, descriptive analysis, rotated component matrix, kmo and bartlett's test, convergent and discriminant validity, confirmatory factor analysis and structural equation modeling over the regression analysis (park & park, 2016). after the analysis of the data, the tables are exported to microsoft word, and the results are presented with proper interpretation of every table. 4. data analysis and interpretation 4.1. demographics the table below represents with the demographical details of the respondents, including the age, experience and gender of the respondents (micheels & nolan, 2016). table 1: demographical details dimensions frequency percent age 20-25 50 15.5 26-30 60 18.6 31-35 108 33.4 36-40 53 16.4 40+ 52 16.1 total 323 100.0 experience 2 years or less 192 57.8 above 2 years 74 22.3 above 4 years 66 19.9 total 332 100 gender male 140 43.3 female 183 56.6 total 323 100 15.5% of the respondents were of between 20 to 25 years of age, 18.6% of the respondents were of 26 to 30 years of age, 33.4% of the respondents were of 30 to 35 years of age whereas, 16.4% and 16.1% of the respondents were of 36 to 40 or 40 plus years of age. the experience of 74 of the participants was above two years, the experience of 192 of the participants was of two years or less than two years, whereas the experience of 66 of the participants was more than four years. 183 of the participants were females whereas, 140 of the participants were males. 4.2. descriptive statistics the table below represents with the results of the descriptive analysis, representing the summarization of the collected data, in the form of minimum values, maximum values, mean values, standard deviation values, skewness and standard error values (saint ville, hickey, locher, & phillip, 2016). table 2: descriptive statistics n minimum maximum mean std. deviation skewness statistic statistic statistic statistic statistic statistic std. error sc 323 1.00 7.00 3.7397 1.10268 -.787 .136 es 323 1.00 7.00 3.8781 1.21108 -.623 .136 ar 323 1.00 7.00 4.0048 1.17301 -.787 .136 hc 323 1.00 7.00 3.7312 1.11237 -.732 .136 ia 323 1.00 7.00 3.9322 1.13237 -.742 .136 agbioforum, 23(2), 2021 | 107 shibli, saifan, yajid, khatibi and azam. — social capital, agriculture extension services and access of resources toward innovation … according to the table above, there are 332 total observations, and the minimum and maximum values are equal to 1.00 and 7.00, respectively, the mean values can be observed to be lying in between the minimum and maximum value ranges, which means that all the data is normally distributed and none of the values are very high or very low. furthermore, the low level of skewness and standard deviation is representing that the values are not significantly dispersed or deviated from the mean value. so, it can be proposed that the data is normal, and the data is close to the mean values, which means that it is good to go for further testing and analysis. 4.3. kmo and bartlett's test the table below is representing the results for the kmo and bartlett's test, and this test is evaluating all of the data, altogether at once (wossen, berger, & di falco, 2015). table 3: kmo and bartlett's test kaiser-meyer-olkin measure of sampling adequacy. .938 bartlett's test of sphericity approx. chisquare 11564.400 df 1081 sig. .000 the value of the kaiser-meyer-olkin measure of sampling adequacy must be more than 0.5 according to the standard, and, on the other hand, bartlett's test of sphericity is supposed to have a value lower than 0.05. in the results, it can be observed that the first value is equal to 94% or 0.93 whereas, the second value is significantly lower than 0.05. it is indicating that the data in the model are significant and there is a substantial correlation present in the available data. 4.4. rotated component matrix the table below is representing the results for rotated component matrix, it represents the relationship present among the items and the selected components under study (chen, wang, & huang, 2014). table 4: rotated component matrix component 1 2 3 4 5 sc1 0.651 sc2 0.706 sc3 0.692 sc4 0.722 sc5 0.768 sc6 0.775 sc7 0.76 es1 0.729 es2 0.745 es3 0.683 es4 0.752 ar1 0.775 ar2 0.785 ar3 0.834 hc1 0.698 hc2 0.736 hc3 0.709 hc4 0.834 hc5 0.864 ia1 0.729 ia2 0.745 ia3 0.783 according to the table above, all of the values are almost above 0.7 and according to the standard as well, the valid values for the rotated component matrix are more than 0.7 (chen et al., 2014). it means that there is a significant relationship in between the first component and ia1, ia2 and ia3 respectively, as all the values are above 0.7. moreover, the same goes for other components and selected items as well, there is a significant influence of the second component on the items of ar. and similar is the case with the other items and components as well. 4.5. convergent validity and reliability the convergent validity represents that what is the extent to which a new scale is closely related to the other measures and variables of the same construct. whereas the discriminant validity represents the measurements or concepts that should not be related and not being actually related as well (hassan & birungi, 2011). table 5: convergent validity and reliability cr ave msv sc 0.921 0.563 0.350 es 0.921 0.517 0.227 ar 0.954 0.566 0.263 hc 0.934 0.574 0.350 ia 0.944 0.565 0.349 the valid value for convergent validity is more than 0.8 whereas, the valid value for ave is more than 0.5, and in both of the cases, for all of the variables, the values can be observed to be significant as all of the values by more than 0.8 and 0.5 for both of the cases respectively (hassan & birungi, 2011). on the other hand, the value for msv is lower than ave value, which makes it valid and significant as well. 4.6. correlations the values in the table below are representing the correlation that is present among the variables under study, the correlation with the variables itself and among the variables is represented, which shows the strength of relationship or impacts present among the variables (hunecke et al., 2017). table 6: correlations sc es ar hc ia cronbach alpha sc pearson correlation 1 0.922 sig. (2-tailed) n 323 es pearson correlation .371* * 1 0.927 sig. (2-tailed) 0 n 323 323 ar pearson correlation .433* * .609* * 1 0.936 sig. (2-tailed) 0 0 n 323 323 323 h c pearson correlation .346* * .468* * .481* * 1 0.944 sig. (2-tailed) 0 0 0 n 323 323 323 32 3 ia pearson correlation .346* * .468* * .481* * 1 1 0.944 sig. (2-tailed) 0 0 0 0 n 323 323 323 32 3 32 3 **. correlation is significant at the 0.01 level (2-tailed). agbioforum, 23(2), 2021 | 108 shibli, saifan, yajid, khatibi and azam. — social capital, agriculture extension services and access of resources toward innovation … the correlation values are presented in the table above, and in accordance with the table’s values, it can be proposed that there is positive and significant level of correlation present among all of the variables (hunecke et al., 2017). all the variables are positively correlated with each other, representing that the model is significant and the variables are significant enough to be studied to gather, so, the data is good to go for further testing and analysis. 4.7. model fit indices the table below is representing the results for confirmatory factor analysis, both the threshold and observed values are represented, that represent the overall model fit for this study (koutsou, partalidou, & ragkos, 2014). table 7: model fit indices cfa indicators cmin/df gfi ifi cfi rmsea threshold value ≤ 3 ≥ 0.80 ≥ 0.90 ≥ 0.90 ≤ 0.08 observed value 1.924 0.803 0.917 0.916 0.054 the threshold value for the factor cmin is less than or equal to three, and the observed value is equal to 1.9, the threshold value for the factor gfi is equal to or more than 0.80 and the observed value is equal to 0.803 on the other hand, the threshold value for the factor ifi is more than or equal to 0.90 and the observed value is equal to 0.917 (koutsou et al., 2014). all these values are representing that the model is fit and valid for further testing and analysis. similar is the case with the factors rmsea and cfi (koutsou et al., 2014). 4.8. regression the regression results are presented in the table 8 below, and it is also representing the impacts of all the variables along with the acceptance or rejection of the proposed hypotheses of the study (willy & holm-müller, 2013). table 8: regression results regression estimate s.e. c.r. p hypothesis decision sc → ia .236 .055 5.557 .201 h1 rejected es → ia .217 .046 5.132 .000 h2 accepted ar → ia .388 .039 10.157 .000 h3 accepted mediation estimate s.e. c.r. p hypothesis decision sc*hc → ia .228 .041 5.440 .000 h4 accepted es*hc → ia .185 .043 4.189 .000 h5 accepted ar*hc → ia .174 .044 4.120 .000 h6 accepted according to this table, the impact of the variable social capital on the innovation adoption in household farming is insignificant, as the p value is more than 0.05. on the other hand, the impact of extension services on the innovation adoption in household farming is significant as the p value is less than 0.05 and the impact is equal to 21% which means that with every 1% increase in extension services, the innovation adoption will increase by 21% (willy & holm-müller, 2013). the impact of access of resources on innovation adoption in household farming is significant and is equal to a value of 38%. the mediation of human capital between social capital and innovation adoption in household farming is significant, and similar is the case with the mediation for extension services and innovation adoption in household farming and access of resources and innovation adoption in household farming. 5. discussion and conclusion 5.1. discussion with the continuous development in technology, the agricultural technologies have also been improved with the passage of time. however, farmers from the rural areas work believing in the old school system and they are not engaged towards the implementation of new technologies to improve the working environment of the agricultural field. many studies have been conducted in the past to determine the impact of important variables on the adoption innovation in household farming. the current study was also conducted to determine the impact of social capital, extension services and access of resources on the adoption innovation in household farming considering the mediating role of human capital. this research study helped in formulating four important results. first, the social capital was found to have an insignificant impact on adoption innovation in household farming. according to bisseleua, idrissou, olurotimi, ogunniyi et al. (2018), as the social capital determines the shared values among the farmers, it promotes the incomplete information. this leads to different doubts in the minds of the farmers, and they do not opt new technologies due to misleading information and they prevent themselves from enjoying the benefits of the new technologies to gain more profits. second, the extension services have significant impact on adoption innovation in household farming because they help in providing the needed education as well as knowledge to the farmers. these services support the farmers to opt for new technologies. according to cofrébravo, klerkx, and engler (2019), the main function of the extension services is to promote the adoption of new technologies by the farmers by providing them the complete and significant knowledge about these technologies and how they can be implemented to increase the total income revenue of the farmers thus leading towards the growth in the economy (usman & ahmad, 2018). third, the access of resources was also found to have a significant impact on adoption innovation in household farming. according to gao, liu, yu, yang et al. (2019), the no. of resources play an important role on the social agbioforum, 23(2), 2021 | 109 shibli, saifan, yajid, khatibi and azam. — social capital, agriculture extension services and access of resources toward innovation … behavior of the farmers. the farmers provided with a large no. of resources were more likely to adopt for new technologies in the household farming whereas, the farmers who do not have a large no. of resources, showed resistance towards it. this helped in promoting the wealth in such areas as the no. of resources is important for sustainable development as well. this promotes a healthy and better environment as the farmers work harder to encourage the “green farming” by using the new technologies effectively. forth, the findings showed that the human capital has significant impact on adoption innovation in household farming. the experiences of the farmers are also nurtured by the extension services as well as by the access of resources. however, the extension services helped in providing the best education to the farmers for improving their skills and thus leading them towards using the new technologies more effectively (gong, li, parks, pang et al., 2018). however, the social capital also improves the human capital as one educated farmer tries to spread the knowledge as far as possible. this improves the overall working environment of the agricultural sectors thus promoting the adoption of new technologies in household farming. even though still some old farmers prefer to use old techniques but as the world is progressing they have to shift to the new technologies eventually in order to keep themselves in the never ending race (kansanga, luginaah, bezner kerr, lupafya et al., 2020). this helps in promoting the effective profit gains as well for the farmers as well as for their households. 5.2. conclusion for encouraging the adoption of new technologies in the household farming, many steps have been taken by different countries around the globe. as the “green farming” became a trend with the passing time, it encouraged the farmers to adopt new technologies to keep themselves moving with the continuous development in the production technologies. this research study was conducted to determine the impact of different variables on the adoption innovation in the household farming (pindado, sánchez, verstegen, & lans, 2018). the results obtained from this research study showed that the social capital has a negative impact on the innovation adoption in the household farming due to the negative influence of the people on the thought process of each other in case of no proper guidance. whereas, both access to resources as well as extension services, have a significant impact on the innovation adoption in the household farming as it helps in spreading of proper awareness as well knowledge about the benefits of the new technologies in the agricultural world (kuang, jin, he, wan et al., 2019). even though the human capital also plays a significant mediating role in the relationship between social capital, extension services, access to resources and the innovation adoption in the household farming. this helped in encouraging the farmers to implement the new techniques for improving the overall production in the household farming as well. this results in the maximization of the total profit gain. 5.2.1. limitations and future research indications the significant impact of social capital was observed in many past studies. however, no such study was conducted in the past that showed the negative impact of social capital on the innovation adoption in the household farming. this research study will provide another important aspect of social capital on the adoption of new technology in the household farming. this helped in improving the literature review in this context as well encouraging more scholars to consider this aspect of reality as well. the data was collected by time-series method. this leads to a conservative approach. however, in order cross such limitations, the cross-sectional studies should be conducted to fill any observed gaps and to promote the positive influences of the innovation adoption in household farming. this will ultimately lead to a positive impact on the economic growth of the country along with promoting the sustainable development. the impact of few variables on innovation adoption in the household farming was discussed in this research study. however, a large no. of other variables should also be considered for the future studies to have a better knowledge about the significance of the innovation adoption in the household farming. this leads to formations of many policies as well as other theoretical implications around the world. 5.2.2. implications of the study this research study not only helped in theoretical implications, but it also leads to many practical implications. considering the significance of extension services, many organizations have planned different training as well as educational sessions for the farmers to improve their information so that they become more open towards implementing the new technologies in the household farming. such sessions also helped in opening the minds of the farmers and they worked harder to improve their skills as well which led them to achieve the required goals. this led to the promotion of new technologies as well in different developing countries around the world especially in the rural areas where they are needed the most to make progress. this study has helped the government in encouraging the farmers to educate themselves as they were also rewarded for their work. this promoted the implementation of new technologies in the household farming, not only in malaysia but also around the world. this helped the farmers to understand their worth and they kept on moving with full enthusiasm to achieve their goals effectively. references ab yajid, m. s. 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(2010); perry (2011)). governments in rapidly developing countries in the world such as south korea, china, have invested a huge number of resources to foster agriculture and rural development (im et al. (2016); jacka (2013); ahlers and schubert (2009)). in these countries, to build a new countryside, comprehensive programs have been launched, under the names of “the new village movement” (also known as the new community movement or saemaul undong in korean)) in south korea in the 1970s, in rural development program taiwan in 1950s, and in the “new socialist countryside” in china in 2006. these programs are known to contribute significantly to exports, domestic demand for food, and more capital and labor for industrialization and successful development in these countries (looney, 2012). the vietnam national target program on new rural development (ntp-nrd) during 2010-2020 has been launched under the name of new countryside construction program (nccp) nationwide in over 9.008 communes (vietnam national assembly, 2016). the general objectives of the program are: (1) to build a new countryside with gradually modem socio-economic infrastructure, rational economic structure, and forms of production organization; (2) to associate agriculture with the quick development of industries and services, and rural with urban development under planning; (3) to assure a democratic and stable rural community deeply imbued with national cultural identity; to protect the eco-environment and maintain security and order, and to raise people's material and spiritual lives along with the socialist orientation. the ntp-nrd is an mailto:ptclai@vnuhcm.edu.vn mailto:ngoqthanh@gmail.com http://orcid.org/0000-0001-8357-1957 agbioforum, 21(3), 2019 | 2 lai and quang-thanh. — influence of new countryside construction program overall socio-economic development, political and security, and defense program, covering the following 11 activities: (1) new rural planning, (2) socioeconomic infrastructure development, (3) rural economic development and income raising, (4) poverty reduction and social protection, (5) renovation and development of production organization, (6) education and training development, (7) health care, (8) rural culture, information, and communication, (9) clean water and rural environment, (10) operations of local party/government system, and (11) rural security and public order. from 2010 to 2015, the nccp program has mobilized 851,380 billion vnd to invest in rural areas across vietnam. by early 2016, 1761 communes out of a total of 8,920 communes in vietnam had achieved a set of 19 criteria developed by the nccp program, equal to 19.7% (vietnam national assembly, 2016). the vietnamese government has considered the nccp program to be successful (vietnam national assembly, 2016). the impact of the nccp program, however, remains debatable. a study jointly conducted by the international fund for agricultural development (ifad) and the world bank (wb) mentions that although the nccp program in vietnam has upgraded rural infrastructure and conditions for economic and social improvements in rural vietnam between 2010 and 2015 (ifad-world bank, 2016), it is lacking evidence to support the success of the nrd program (ifadworld bank, 2016). some shortcomings of nccp programs are indicated in this regard, including (1) the inflexibility of the set of criteria neutralizes any priority local needs in rural transformation, (2) local entities are not empowered when important policy decisions are taken, and (3) local communes are forced to rush for the fulfillment of the criteria regardless of the resources’ capacity and management ability (ifad-world bank, 2016). the objective of this study is to assess the impacts of the nccp program on households’ income and living standards in the mekong river delta (mrd) of vietnam. to address the above issue, this study uses surveyed data from vietnam household living standard surveys (vhlss) 2010 when the nccp program is started and the survey of 2014 when the nrd program has been implemented and successfully recorded in some communes for the first phase of development 2010-2015. the data from vhlss 2010 and 2014 for the same households in the mrd are selected and information on nccp is added to each household following nccp and non-nccp communes, and each nccp criteria achieved by those communes as well. the first research question addressed by this study concerns the impact of the nccp program on household income in the affected communes? the hypothesis is that households’ total income in the treatment communes experienced a significant increase as a result of the nccp program. the hypothesis is that the nccp program generally increases income level in a fulfilled commune. the second and final research question is: how are different wealth groups affected by the nccp program? to answer this question, the population was sub-divided into deciles and we estimated the nccp program effects on each decile. a greater change in income for the poorest decile would indicate pro-poor attributes of the nccp program and vice versa. the hypothesis is that the nccp program increases income inequality by favoring the top-income group due to the inflexibility of the criteria set. the paper follows the following structure. section 2 provides a literature review of the paper subject while section 3 presents the dataset as well as a description of the methodology used to design this research. section 4 shows empirical results obtained on the basis of data collected and collated in the previous section. lastly, section 5 provides a conclusion of the study findings as well as recommendations vis-à-vis future research work in this area. literature review nrd is expected to increase the welfare outcomes of households in vietnam (liêng, 2015), like in china (see, for example, ahlers and schubert (2009)). it happens through several channels such as infrastructure of various types (charlery, qaim and smith-hall (2016), shenggen and zhang (2004), im et al. (2016), kara,taş and ada (2016), rahman (2014)), social capital (narayan and pritchett, 1999). charlery, qaim and smith-hall (2016) find that the new road had a significantly positive impact on mean household income. shenggen and zhang (2004) also find that rural infrastructure and education play a more important role in explaining the difference between rural nonfarm productivity and agricultural productivity. because the rural nonfarm economy is a major determinant of rural income, investing more in rural infrastructure is key to the growth of overall income of the rural population. kara,taş and ada (2016) consider two categories of infrastructure investments: economic infrastructure investments (i.e., highways, power generation and water facilities), and social infrastructure investments (i.e., education and healthcare). the authors identify how different types of infrastructure expenditures affect regional incomes in turkey and find that infrastructure expenditures enhanced regional income in turkey, and social infrastructure investments and education agbioforum, 21(3), 2019 | 3 lai and quang-thanh. — influence of new countryside construction program expenditures demonstrate a significant impact on regional income. rahman (2014) studies the impact of rural infrastructure on the decision to choose between farm and non-farm enterprises vis-à-vis income by bangladeshi rural households and finds that rural infrastructure has a significant but inverse impact on enterprise choices vis-à-vis income. concerning social capital, narayan and pritchett (1999) find that the social capital of a household’s village is as important in determining the household’s income as are many of the household’s characteristics, such as schooling, assets, distance to markets, or gender of the household head. nrd can also affect household livelihood. households might be more diversified in income under the impact of infrastructure (escobal (2001); abdulai and crolerees (2001); deininger and olinto (2001)). escobal (2001) examines the determinants of non-farm income diversification in peru and finds that access to public assets such as rural electrification and roads is an important factor in diversification. deininger and olinto (2001), using data from colombian rural households, confirm the importance of non-farm activities as a source of income and employment. the authors also find that a significant share of poor households engages in a combination of wage labor in jobs with low entry requirements plus self-employment in “marginal” onfarm or informal sector activities. nrd can affect income distribution (calderon and servén (2004), calderón and chong (2004)) through several ways. one is through the impact of infrastructure (see, for example, charlery, qaim and smith-hall (2016)), non-farm employment (see, for example, reardon et al. (2000)). charlery, qaim and smith-hall (2016) find that the new road had a significantly positive impact on mean household income and contributed to decreasing income inequality, and the poorest households gained most from the construction of the road. reardon, berdegué and escobar (2001) find that the effect of non-farm employment on inequality is mixed. materials and methods data sources this study relies on vietnam household living standard surveys (vhlss) 2010, 2012, and 2014. the vhlsss were conducted by the general statistics office of vietnam (gso) with technical assistance from the world bank. the surveys contain household and community data. data on households include basic demography, employment and labor force participation, education, health, income, expenditure, housing, fixed assets and durable goods, the participation of households in poverty alleviation programs. commune data include demographic status of communes, general economic conditions, non-farm employment, agriculture production, local infrastructure and transportation, education, health, and social affairs. the commune data contained information on natural disasters happening in communes in previous years. commune data can be merged with household data. each of the vhlss covers more than nine thousand households. the data are representative of urban/rural and eight geographic regions. the entire dataset of 2010, 2012, and 2014 household-level vhlsss covered 6,750, 6,696, and 6,618 rural households, respectively. the entire data set of 2010, 2012, and 2014 communelevel vhlsss covered 2,199, 669, and 1,716 communes, respectively.in this study, we use the rural samples for the mekong river delta. the selected sample of 2010 and 2014 household-level vhlsss covered 1,455 and 1,440 rural households, respectively. the selected sample of 2010 and 2014 commune-level vhlsss covered 470 and 278 communes, respectively. table 1 presents the summary of 2-wave householdlevel panel data in 2010-2014 with 628 households in each year of which 51 households live in nccpqualified communes. table 1: household-level sample, 2010-2014 year non-nccp nccp total obs. row (%) obs. row (%) obs. row (%) 2010 679 51.95 0 0.00 679 50.00 2014 628 48.05 51 100.00 679 50.00 total 1,307 100.00 51 100.00 1,358 100.00 source: authors’ compilation from vhlss 2010-2014 (household survey) table 2: commune-level sample, 2010-2014 year non-nccp nccp total obs. row (%) obs. row (%) obs. row (%) 2010 268 51.94 0 0.00 268 50.00 2014 248 48.06 20 100.00 268 50.00 total 516 100.00 20 100.00 536 100.00 source: authors’ compilation from vhlss 2010-2014 (commune survey) agbioforum, 21(3), 2019 | 4 lai and quang-thanh. — influence of new countryside construction program table 2 presents the summary of 2-wave commune-level panel data in 2010-2014 with 268 communes in each year. in our data set, there are 20 communes, which have been qualified as nccp ones in 2014. methods model specification we assume a household welfare indicator is a function of characteristics of households and communities as follows (glewwe, 1991): ln⁡ 𝑌𝑖𝑗𝑡 =⁡𝛼0 +⁡𝑋𝑖𝑗𝑡𝛽1 +⁡𝐶𝑗𝑡𝛾1 ⁡+ ⁡𝑁𝐶𝐶𝑃𝑗𝑡𝛿1 +⁡𝜏𝑡 + ⁡휀𝑗𝑗𝑡 (1) where the script it denotes for household i in commune j in the year t; y is a welfare indicator of households; x is a vector of characteristics of households such as demographical variables and socio-economic variables; c is a vector of characteristics of communities such as commune general conditions, and initial infrastructure conditions; nccp is a dummy variable indicating whether a commune is qualified for nccp criteria or not;  is the dummy variable of years;  is unobserved variables. we use different indicators of household welfare including per capita income, per capita expenditure by levels and by quintiles, and share of incomes by different sources. we use similar specifications as equation (1) for different dependent variables. the effect of nccp on households is measured by parameters 𝛿1, 𝛿2, and⁡𝛿3. one challenge faced when estimating the effect of nccp is the endogeneity of ncpp. the unobserved variables can be correlated with the nccp. in equation (1), unobserved variables ijt include both communelevel (vj) and household-level variables (ui). since our nccp is the commune-level variables, they are more likely to be correlated with unobserved commune-level variables. the unobserved commune-level variables can be decomposed into time-variant (𝑣𝑗1𝑡) and timeinvariant commune-level variables (𝑣𝑗𝑜) (equation (2)). in this study, we use the commune fixed-effect regression to eliminate unobserved time-invariant commune-level variables. it is expected that the endogeneity bias will be negligible after the elimination of these unobserved time-invariant variables and the control of observed variables. 휀𝑗𝑗𝑡 =⁡𝑢𝑖𝑡 +⁡𝑣𝑗𝑡 = 𝑢𝑖𝑜 + 𝑢𝑖1𝑡 + 𝑣𝑗𝑜 + 𝑣𝑗1𝑡 (2) nccp and outcomes we use a dummy variable that takes the value of 1 if a commune is rewarded as an nccp one, and takes the value of 0 if otherwise. the unit of analysis is the household and both consumption and income in per capita terms and in terms of quintile, and share of income sources as well are under consideration. both consumption and incomes have been deflated to january 2010 national prices through the use of monthly and regional price indices calculated as part of the survey and using the general statistics office cpi to adjust prices across rounds of the survey. table 3: changes in outcome variables by non-nccp and nccp groups, 2010-2014 outcome non-nccp nccp diff in diff 2010 2014 diff 2010 2014 diff expenditure 13,798 16,724 2,926 16,488 19,885 3,397 471 food 6,470 7,596 1,126 6,987 8,287 1,300 174 nonfood 7,328 3,716 -3,612 9,501 4,654 -4,847 -1,235 durables 861 1,728 867 5,167 2,927 -2,240 -3,107 income 16,093 52,352 36,259 17,694 63,865 46,171 9,912 housing 70 81 11 68 83 15 4 land 7,096 8,852 1,756 6,656 12,872 6,216 4,460 fixed assets 17,167 30,774 13,607 30,395 47,472 17,077 3,470 health 872 1,014 142 778 874 96 -46 incidence 0.0211 0.0666 0 0.0262 0.067 0 0 education 380 446 66 532 595 63 -3 source: authors’ estimation from vhlss 2010-14 (household survey) table 3 presents a comparison of outcome variables between 2010 and 2014 and between non-nccp and nccp groups as well. there are significant increases between 2010 and 2014 within non-nccp and nccp groups in terms of total expenditure per capita, food expenditure per capita, income per capita, housing area by household, land by household, and fixed capital assets. increases in these indicators also occur between non-nccp and nccp groups. there are significant improvements between non-nccp and nccp groups in terms of health expenditure per capita, health incidence, and education expenditure per capita. table 4 presents a comparison of income shares between 2010 and 2014 and between non-nccp and nccp groups as well. there are significant increases between 2010 and 2014 within non-nccp and nccp groups in terms of income share from livestock, and a small increase in income share from services, and income share from agriculture. there are significant improvements between non-nccp and nccp groups in terms of income share from the enterprise. agbioforum, 21(3), 2019 | 5 lai and quang-thanh. — influence of new countryside construction program table 4: changes in income shares by non-nccp and nccp groups, 2010-2014 outcome non-nccp nccp diff in diff 2010 2014 diff 2010 2014 diff from labor 38.14 39 0.86 53.95 35.56 -18.39 -19.25 from crops 5.07 0.36 -4.71*** 5.81 0.67 -5.14*** -0.43 from livestock 0.77 1.89 1.12*** 0.1 3.51 3.41 2.29 from forestry 0.18 0.35 0.17 0 0.1 0.1 -0.07 from aquaculture 1.47 10.61 9.14 0 7.61 7.61 -1.53 from services 0 0.01 0.01 0 0.52 0.52 0.51 from enterprise 31.74 20.33 -11.41*** 22.97 26.04 3.07*** 14.48 from others 22.62 27.45 4.83*** 17.17 26 8.83** 4 from agriculture 7.5 13.22 5.72*** 5.91 12.41 6.5*** 0.78 note: *** significant at 1% level, ** at 5% level. source: authors’ estimation from vhlss10-14 (household survey) table 5 presents changes in expenditure deciles (percentage) and a comparison of expenditure deciles between 2010 and 2014 and between non-nccp and nccp groups as well. for the non-nccp group, expenditure shares of seven deciles increase between 2010 and 2014, whereas for the nccp group the first 30 deciles decrease between 2010 and 2014. however, expenditure shares from the fourth to the ninth decile increase between 2010 and 2014. nccp is unlikely to benefit the bottom 30 and the top. table 5: changes in expenditure deciles (percentage) by non-nccp and nccp groups, 2010-2014 outcome non-nccp nccp 2010 2014 ratio 2010 2014 ratio bottom 3.77 3.79 1.00*** 3.96 3.81 0.96*** 2nd decile 5.18 5.39 1.04*** 5.05 4.89 0.97*** 3rd decile 6.09 6.32 1.04*** 5.69 5.65 0.99*** 4th decile 6.96 7.26 1.04*** 6.12 6.63 1.08*** 5th decile 8.05 8.15 1.01*** 7.37 7.68 1.04*** 6th decile 9.14 9.22 1.01*** 8.16 8.88 1.09*** 7th decile 10.30 10.39 1.01*** 9.37 10.63 1.13*** 8th decile 12.22 11.98 0.98*** 10.86 11.76 1.08*** 9th decile 14.98 14.57 0.97*** 12.91 14.03 1.09*** top 23.32 22.92 0.98*** 30.51 26.04 0.85*** note: *** significant at 1% level. source: authors’ estimation from vhlss 2010-14 (household survey) table 6 presents changes in expenditure deciles (in terms of the mean of expenditure) and a comparison of expenditure deciles between 2010 and 2014 and between non-nccp and nccp groups as well. all deciles are better between 2010 and 2014 for both groups of non-nccp and nccp. only the bottom shows to be better off between nccp vs. non-nncp. table 6: changes in expenditure deciles (expenditure mean) by non-nccp and nccp groups, 2010-2014 outcome non-nccp nccp diff in diff 2010 2014 diff 2010 2014 diff bottom 5,268 6,388 1,120 5,452 7,214 1,762 642 2nd decile 7,235 9,071 1,836 7,305 8,959 1,654 -182 3rd decile 8,494 10,612 2,118 8,456 10,884 2,428 310 4th decile 9,669 12,219 2,550 9,609 11,627 2,018 -532 5th decile 11,162 13,757 2,595 11,111 13,551 2,440 -155 6th decile 12,673 15,568 2,895 12,860 15,435 2,575 -320 7th decile 14,310 17,579 3,269 14,360 17,193 2,833 -436 8th decile 16,973 20,368 3,395 16,315 20,693 4,378 983 9th decile 20,786 24,777 3,991 20,761 24,185 3,424 -567 top 32,239 38,809 6,570 49,401 44,485 -4,916 -11,486 source: authors’ estimation from vhlss 2010-14 (household survey) table 7 presents changes in expenditure quintiles (percentage) and a comparison of expenditure quintiles between 2010 and 2014 and between non-nccp and nccp groups as well. the results are consistent with expenditure deciles in error! reference source not found.. for the non-nccp group, expenditure shares of three quintiles increase between 2010 and 2014, whereas for the nccp group the poorest quintile and the richest quintile decrease between 2010 and 2014. however, income shares from the near poorest to the near richest quintiles increase between 2010 and 2014. nccp is unlikely to benefit both the poorest and the richest. agbioforum, 21(3), 2019 | 6 lai and quang-thanh. — influence of new countryside construction program table 7: changes in expenditure quintiles (percentage) by non-nccp and nccp groups, 2010-2014 outcome non-nccp nccp 2010 2014 ratio 2010 2014 ratio poorest 8.95 9.18 1.03*** 9.01 8.70 0.97*** near poorest 13.05 13.58 1.04*** 11.81 12.29 1.04*** middle 17.18 17.38 1.01*** 15.53 16.56 1.07*** near richest 22.52 22.38 0.99*** 20.23 22.38 1.11*** richest 38.30 37.49 0.98*** 43.42 40.07 0.92*** note: *** significant at 1% level. source: authors’ estimation from vhlss 2010-14 (household survey) table 8 presents changes in expenditure quintiles (in terms of the mean of expenditure) and a comparison of expenditure quintiles between 2010 and 2014 and between non-nccp and nccp groups as well. all quintiles are better between 2010 and 2014 for both groups of non-nccp and nccp. only the near richest quintile shows to be better off between nccp vs. nonnncp. table 8: changes in expenditure quintiles (expenditure mean) by non-nccp and nccp groups, 2010-2014 outcome non-nccp nccp diff in diff 2010 2014 diff 2010 2014 diff poorest 6,225 7,711 1,486 6,800 8,211 1,411 -75 near poorest 9,054 11,427 2,373 9,279 11,149 1,870 -503 middle 11,918 14,654 2,736 12,044 14,659 2,615 -121 near richest 15,654 18,948 3,294 15,286 19,526 4,240 946 richest 26,594 31,827 5,233 33,035 33,959 924 -4,309 source: authors’ estimation from vhlss 2010-14 (household survey) table 9 presents changes in income deciles (percentage) and a comparison of income deciles between 2010 and 2014 and between non-nccp and nccp groups as well. for the non-nccp group, income shares of seven deciles decrease between 2010 and 2014, whereas for the nccp group, the first six deciles decrease between 2010 and 2014. in terms of income, nccp is unlikely to benefit the six bottom deciles. table 9: changes in income deciles (percentage) by non-nccp and nccp groups, 2010-2014 outcome non-nccp nccp 2010 2014 ratio 2010 2014 ratio bottom 2.80 0.59 0.21*** 2.60 0.56 0.22*** 2nd decile 4.10 2.23 0.54*** 4.16 2.01 0.48*** 3rd decile 5.16 3.64 0.71*** 5.57 3.34 0.60*** 4th decile 6.15 4.91 0.80*** 6.12 4.14 0.68*** 5th decile 7.19 6.24 0.87*** 6.78 5.47 0.81*** 6th decile 8.35 7.81 0.93*** 8.10 6.79 0.84*** 7th decile 10.04 9.72 0.97*** 9.13 9.41 1.03*** 8th decile 12.22 12.41 1.02*** 11.22 12.30 1.10*** 9th decile 15.72 16.75 1.07*** 15.00 16.92 1.13*** top 28.25 35.70 1.26*** 31.33 39.04 1.25*** note: *** significant at 1% level, ** at 5% level. source: authors’ estimation from vhlss10-14 (household survey) table 10 presents changes in income deciles (in terms of the mean of income) and a comparison of income deciles between 2010 and 2014 and between non-nccp and nccp groups as well. all deciles, except for the bottom, are better between 2010 and 2014 for both groups of non-nccp and nccp. the bottom 20 shows to be worse off between nccp vs. non-nncp. table 10: changes in income deciles (income mean) by non-nccp and nccp groups, 2010-2014 outcome non-nccp nccp diff in diff 2010 2014 diff 2010 2014 diff bottom 4,536 3,646 -890 4,131 3,906 -225 665 2nd decile 6,654 13,890 7,236 6,745 11,607 4,862 -2,374 3rd decile 8,393 22,587 14,194 8,295 22,611 14,316 122 4th decile 10,006 30,291 20,285 10,272 30,159 19,887 -398 5th decile 11,609 38,413 26,804 11,518 36,788 25,270 -1,534 6th decile 13,512 48,268 34,756 13,454 47,447 33,993 -763 7th decile 16,181 60,038 43,857 16,106 57,620 41,514 -2,343 8th decile 19,682 77,237 57,555 19,740 82,272 62,532 4,977 9th decile 25,414 104,835 79,421 25,913 103,232 77,319 -2,102 top 45,563 221,700 176,137 54,625 258,809 204,184 28,047 source: authors’ estimation from vhlss 2010-14 (household survey) table 11 presents changes in income quintiles (percentage) and a comparison of income quintiles between 2010 and 2014 and between non-nccp and nccp groups as well. the results are consistent with agbioforum, 21(3), 2019 | 7 lai and quang-thanh. — influence of new countryside construction program income deciles in. for the non-nccp group, income shares of the four bottom quintiles decrease between 2010 and 2014, whereas for the nccp group the three bottom quintiles decrease between 2010 and 2014. however, income shares of the richest quintiles increase between 2010 and 2014. nccp is unlikely to benefit the three bottom quintiles. table 11: changes in income quintiles (percentage) by non-nccp and nccp groups, 2010-2014 outcome non-nccp nccp 2010 2014 ratio 2010 2014 ratio poorest 6.91 2.82 0.41*** 6.76 2.58 0.38*** near poorest 11.32 8.56 0.76*** 11.69 7.48 0.64*** middle 15.54 14.04 0.90*** 14.87 12.26 0.82*** near richest 22.26 22.13 0.99*** 20.34 21.72 1.07*** richest 43.97 52.45 1.19*** 46.33 55.97 1.21*** note: *** significant at 1% level, ** at 5% level. source: authors’ estimation from vhlss10-14 (household survey) table 12 presents changes in income quintiles (in terms of the mean of income) and a comparison of income quintiles between 2010 and 2014 and between nonnccp and nccp groups as well. all quintiles are better between 2010 and 2014 for both groups of non-nccp and nccp. however, the poorest quintile shows to be worse off between nccp vs. non-nncp. table 12: changes in income quintiles (income mean) by non-nccp and nccp groups, 2010-2014 outcome non-nccp nccp diff in diff 2010 2014 diff 2010 2014 diff poorest 5,590 8,791 3,201 5,438 7,207 1,769 -1,432 near poorest 9,158 26,348 17,190 9,832 27,139 17,307 117 middle 12,569 43,205 30,636 12,429 44,605 32,176 1,540 near richest 18,013 68,754 50,741 17,063 67,891 50,828 87 richest 35,536 163,835 128,299 39,513 175,037 135,524 7,225 source: authors’ estimation from vhlss 2010-14 (household survey) table 13 shows changes in income inequality between 2010 and 2014 and between non-nccp and nccp groups as well. within both non-nccp and nccp groups, income inequality increases over 2010-2014. table 13: changes in income inequality by non-nccp and nccp groups, 2010-2014 outcome non-nccp nccp 2010 2014 2010 2014 top 10/bottom 10 10.04 60.81 13.22 66.26 top 20/bottom 20 6.36 18.64 7.27 24.29 income gini 0.37 0.49 0.39 0.52 source: authors’ estimation from vhlss 2010-14 (household survey) table 14 shows changes in expenditure inequality between 2010 and 2014 and between non-nccp and nccp groups as well. within both, non-nccp and nccp groups, expenditure inequality decreases over 2010-2014. table 14: changes in expenditure inequality by non-nccp and nccp groups, 2010-2014 outcome non-nccp nccp 2010 2014 2010 2014 top 10/bottom 10 4.27 4.13 4.86 4.14 top 40/bottom 40 2.77 2.65 3.01 2.76 expenditure gini 0.29 0.28 0.35 0.32 source: authors’ estimation from vhlss 2010-14 (household survey) household-level confounding variables time variant household-level explanatory variables that could be correlated with outcome variables have also been obtained from the data set to serve as controls in the fixed effects regression including, demographic characteristics and socio-economic characteristics. demographic characteristics are compiled from the household roster and include household size and proportion of members in different age/sex groups to capture changes in household composition resulting from births, deaths and marriages. socio-economic variables include household head’s characteristics, and the proportion of members in a different occupation, and education as well. summary statistics are reported in table 15. agbioforum, 21(3), 2019 | 8 lai and quang-thanh. — influence of new countryside construction program table 15: summary statistics on household-level covariates, 2010-2014 covariates baseline (2010) follow-up (2014) mean std. dev. mean std. dev. demographic characteristics household size 3.910 1.536 3.823 1.510 kinh majority (=1) 0.946 0.227 0.923 0.266 proportion of elderly 0.119 0.247 0.131 0.237 proportion of child 0.231 0.205 0.226 0.201 proportion of female 0.520 0.197 0.501 0.197 socio-economic characteristics head’s age 49 14.143 51 13.393 head male (=1) 0.753 0.432 0.769 0.422 head married (=1) 0.795 0.404 0.000 0.000 hh member’s occupation "leaders/ managers" (%) 0.042 0.136 0.035 0.108 "professionals/ technicians" (%) 0.015 0.079 0.018 0.099 "clerks/ service workers" (%) 0.123 0.207 0.115 0.211 "agriculture/ forestry/ fishery" (%) 0.003 0.028 0.007 0.060 "skilled workers/machine operators" (%) 0.004 0.057 0.002 0.025 "unskilled workers" (%) 0.000 0.013 0.000 0.000 hh member’s educational level "no degree" (%) 0.355 0.295 0.322 0.295 "primary school" (%) 0.308 0.265 0.333 0.275 "lower secondary school" (%) 0.141 0.204 0.142 0.205 "upper secondary school" (%) 0.058 0.139 0.063 0.151 "college and above" (%) 0.016 0.079 0.023 0.094 note: hh: household. source: authors’ calculation from vhlss 2010-2014 (household survey) commune-level confounding variables time variant commune-level explanatory variables that could be correlated with outcome variables have also been obtained from the data-set to serve as controls in the fixed effects regression including: (1) commune general conditions, (2) social support programs within three years before 2010, and (3) initial infrastructure conditions three years before 2010. commune conditions include several natural disasters, commune with specific natural disaster, communes that self-reported no improvement or improvement in living standards compared to 5 years before the survey, were asked about the reasons, with possible responses including a natural disaster or production risk or number of enterprises (firms, or factories) per 1000 commune members in 2006-2010, and 2001-2005. summary statistics are reported in table 16. table 16: summary statistics on commune-level covariates: commune general conditions covariates baseline (2010) follow-up (2014) mean std. dev. mean std. dev. storm in the survey year (=1) 0.074 0.261 0.037 0.188 storm in the last year (=1) 0.119 0.324 0.140 0.347 storm in the last two years (=1) 0.047 0.212 0.108 0.310 storm in the last three years (=1) 0.016 0.126 0.040 0.196 flood in the survey year (=1) 0.006 0.077 0.007 0.086 flood in the last year (=1) 0.013 0.114 0.031 0.173 flood in the last two years (=1) 0.007 0.086 0.018 0.132 flood in the last three years (=1) 0.000 0.000 0.046 0.209 drought in the survey year (=1) 0.031 0.173 0.003 0.054 drought in the last year (=1) 0.004 0.066 0.009 0.094 drought in the last two years (=1) 0.010 0.101 0.000 0.000 drought in the last three years (=1) 0.000 0.000 0.001 0.038 epidemic in the survey year (=1) 0.028 0.165 0.003 0.054 epidemic in the last year (=1) 0.013 0.114 0.016 0.126 epidemic in the last two years (=1) 0.012 0.108 0.019 0.137 epidemic in the last three years (=1) 0.000 0.000 0.013 0.114 insect in the survey year (=1) 0.242 0.428 0.059 0.236 insect in the last year (=1) 0.060 0.238 0.090 0.286 insect in the last two years (=1) 0.069 0.254 0.066 0.249 insect in the last three years (=1) 0.027 0.161 0.029 0.169 number of enterprises per 1000 commune members in 2006-2010 0.473 0.574 0.507 0.631 number of enterprises per 1000 commune members in 2001-2005 0.329 0.431 0.297 0.423 source: authors’ calculation from vhlss2010-2014 (commune survey) agbioforum, 21(3), 2019 | 9 lai and quang-thanh. — influence of new countryside construction program initial infrastructure conditions include infrastructure programs started three years before 2010 and completed three years before 2010 as well. summary statistics are reported in table 17. table 17: summary statistics on commune-level covariates: infrastructure programs covariates infrastructure programs started 3 years before 2010 infrastructure programs completed 3 years before 2010 mean std. dev. mean std. dev. road to district or province (=1) 0.203 0.402 0.178 0.383 road within commune (=1) 0.502 0.500 0.524 0.500 bridge 3 (=1) 0.409 0.492 0.391 0.488 expand irrigation (=1) 0.242 0.429 0.236 0.425 concrete irrigation canals (=1) 0.138 0.345 0.138 0.345 electricity (=1) 0.149 0.356 0.133 0.340 drinking water (=1) 0.230 0.421 0.232 0.423 health center (=1) 0.223 0.417 0.186 0.389 school (=1) 0.480 0.500 0.393 0.489 source: authors’ calculation from vhlss 2010 (commune survey) estimation steps we examine two sets of models: (1) small model and (2) large model. the small model contains only demographical variables and commune-level variables such as commune general conditions, and initial infrastructure conditions. the large models include additional socio-economic variables such as education, occupation, and commune-level variables as in the small model. we tend to use a small set of control variables that are more exogenous or less likely to be affected by nccp. the control variables should not be affected by the treatment variable of interest, i.e., the nccp in this study (heckman, lalonde and smith (1999); angrist and pischke (2008)). we use consumption expenditure instead of income as the dependent variable since consumption expenditure is widely used as an aggregate indicator of household welfare and expenditure data contain fewer measurement errors than income data. nccp variable is suspected to be endogenous in model (1), and thus the estimators can be inconsistent. we apply commune fixed effect-2sls (fe-2sls) regressions to estimate the effect of the new countryside construction program (nccp) on household welfare. the stata xtivreg2 command is explored (schaffer, 2015). nccp variable is instrumented by a set of variables related to social support programs within three years before 2010. social support programs from the vietnamese governments and other organizations (such as job creation, hunger elimination and poverty reduction, investment in economic development and infrastructure, investment in culture and education, health and public health, environment/clean water) within three years before 2010. summary statistics are reported in table 18. table 18: summary statistics on commune-level covariates: government programs or/and support programs within three years before 2010 covariates mean std. dev. job creation (=1) 0.467 0.499 hunger elimination and poverty reduction (=1) 0.717 0.451 investment on economic development and infrastructure (=1) 0.592 0.492 investment on culture and education (=1) 0.244 0.430 health and public health (=1) 0.150 0.358 environment/clean water (=1) 0.236 0.425 source: authors’ calculation from vhlss 2010 (commune survey) empirical results and discussion we used two models which differ in the number of explanatory variables in order to examine the sensitivity of the estimates of nccp impacts to the selection of explanatory variables. the small model contains only demographical variables (such as household size, the proportion of adults above 60 in households, proportion of children below 15 in the household, the proportion of female members in the household, and the ethnicity of the household) and commune-level variables such as commune general conditions (such as specific natural disaster in the last three years, number of enterprises per 1,000 people in 5 and 10 years before), and initial infrastructure conditions (such as infrastructure programs started 3 years before 2010 (namely, the road to district or province, the road within the commune, bridge, irrigation, canals, electricity, drinking water, health center, school), and infrastructure programs completed 3 years before 2010 (namely, the road to district or province, the road within the commune, bridge, irrigation, canals, electricity, drinking water, health center, school). the large models include additional household-level variables related to socio-economic characteristics (such agbioforum, 21(3), 2019 | 10 lai and quang-thanh. — influence of new countryside construction program as the age of household head, the gender of household head, the proportion of household members in occupations, the proportion of household members in education), and commune-level variables such as commune general conditions, and initial infrastructure conditions as in small model. the effect of nccp on expenditure level in table 19, we present the commune fixed-effects regression of per capita expenditure. in all alternatives of the model with expenditure, results indicate that households in nccp-qualified commune have a higher real expenditure per capita of around 119 per cent. although the present study primarily focuses on the impact of nccp, we observe the negative effects of household size/proportion of children on real expenditure per capita. in addition, households living in commune affected by flood during the survey year, or in commune affected by drought during the last three years have the probability of lower real expenditure per capita of 68,1 percent (e-0.383) and 36 percent (e-1.03), respectively. table 19: commune fixed-effects regressions of household expenditure variable small model: real exp. pc large model: real exp. pc nccp (yes=1; no=0) 1.192*** (0.386) 1.022*** (0.348) household size -0.0543*** (0.0152) -0.0811*** (0.0129) proportion of child -0.591*** (0.103) -0.258*** (0.0914) member occupation "leaders/ managers" (%) -0.0374 (0.103) "professionals/ technicians" (%) 0.0371 (0.196) "clerks/ service workers" (%) 0.0371 (0.0853) "agriculture/ forestry/ fishery" (%) 0.217 (0.224) "skilled workers/ machine operators" (%) 0.838*** (0.235) "unskilled workers" (%) 0.249 (0.227) member education "no degree" (%) -0.00151 (0.0993) "primary school" (%) 0.282*** (0.104) "lower secondary school" (%) 0.511*** (0.113) "upper secondary school" (%) 1.064*** (0.152) "college and above" (%) 1.238*** (0.354) flood in the survey year (=1) -0.363* (0.211) -0.305 (0.267) number of enterprises per 1000 commune members in 2001-2005 0.151** (0.0657) 0.155*** (0.0581) commune affected by drought during the last three years (=1) -1.030*** (0.394) observations 1,358 1,358 r-squared 0.010 0.200 number of communes 679 679 under identification test (kleibergen-paap lm statistic): 16.529 chi-sq(6) p-value 0.0112 note: robust standard errors in parentheses; *** p<0.01, ** p<0.05, * p<0.1. source: authors’ estimation from vhlss2010 the effect of nccp on income distribution in table 20, we present the commune fixed-effects regression of expenditure quantiles for the small model. in all quantiles, (we only present 6 quantiles here to save space), results indicate that households in nccpqualified communes have a higher real expenditure per capita than those living in non-nccp communes. estimates of the differential impact of nccp between the lowest three deciles and the top three deciles indicate that households in nccp-qualified commune have the higher real expenditure per capita of around 41.5 per cent for the bottom, 34.4 per cent for the 2nd decile, and 33.9 per cent for the 3rd decile. nccp likely affects the top at the most, about 63,7%. however, the effects on the 8th and 9th deciles are less compared with those on the 2nd and the 3rd ones. table 20: commune fixed-effects regressions of household expenditure quantiles, small model variable bottom 10 2nd decile 9th decile top 10 nccp (yes=1; no=0) 0.415*** (0.0064) 0.343*** (0.0071) 0.0561*** (0.0120) 0.637*** (0.0442) household size -0.0277*** -0.0385*** -0.0696*** -0.0468*** (0.0020) (0.0009) (0.0010) (0.0149) proportion of elderly -0.342*** -0.379*** -0.0831*** -0.652*** (0.0052) (0.0054) (0.0055) (0.126) proportion of child -0.749*** -0.753*** -0.433*** -0.974*** (0.0222) (0.0092) (0.0073) (0.0368) storm in the last year (=1) -0.0586*** -0.122 agbioforum, 21(3), 2019 | 11 lai and quang-thanh. — influence of new countryside construction program (0.0076) (0.150) storm in the last three years (=1) -0.0691*** -0.0353 -0.0975*** (0.0116) (0.0260) (0.0102) drought in the last year (=1) -0.00971 (0.0240) drought in the last two years (=1) -0.229*** -0.379*** (0.0240) (0.00647) epidemic in the survey year (=1) -0.253*** -0.200*** -0.483*** (0.0045) (0.0135) (0.0048) number of enterprises per 1000 commune members in 2001-2005 0.123*** (0.0057) 0.110*** (0.0031) 0.0921*** (0.0034) -0.143*** (0.0413) number of enterprises per 1000 commune members in 2006-2010 0.0282*** (0.0028) 0.0433*** (0.0044) 0.0581*** (0.0033) -0.0301 (0.0549) storm in the last two years (=1) -0.0334*** (0.0032) flood in the survey year (=1) -0.288*** (0.0038) epidemic in the last three years (=1) -0.318*** (0.0057) drought in the last three years (=1) -0.0715*** (0.0129) constant 9.191*** (0.0044) 9.437*** (0.0054) 10.48*** (0.0079) 8.926*** (0.0555) observations 1,358 1,358 1,358 1,358 note: standard errors in parentheses; *** p<0.01, ** p<0.05, * p<0.1. source: authors’ estimation from vhlss 2010 in table 21, we present the commune fixed-effects regression of expenditure quantiles for a large model. in all quantiles, (we only present 6 quantiles here to save space), results indicate that households in nccpqualified communes have a higher real expenditure per capita than those living in non-nccp communes. estimates of the differential impact of nccp between the lowest three deciles and the top three deciles indicate that households in nccp-qualified commune have the higher real expenditure per capita of around 24.8 per cent for the bottom, 16.9 per cent for the 2nd decile, and 14.8 per cent for the 3rd decile. nccp likely affects the top at the most, about 37,1%. however, the effects on the 8th and 9th deciles are less compared with those on the 2nd and the 3rd ones. table 21: commune fixed-effects regressions of household expenditure quantiles, large model variable bottom 10 2nd decile 9th decile top 10 nccp (yes=1; no=0) 0.248*** 0.169*** 0.111*** 0.371*** (0.0039) (0.0076) (0.0014) (0.0046) household size -0.0279*** -0.0509*** -0.102*** -0.0573*** (0.0010) (0.0006) (0.0011) (0.0017) proportion of elderly -0.216*** -0.0985*** 0.205*** -0.334*** (0.0073) (0.0031) (0.0009) (0.0305) proportion of child -0.429*** -0.308*** -0.185*** -0.130*** (0.0154) (0.0075) (0.0011) (0.0072) age’s head -0.0006*** 0.0005*** -0.0025*** -0.0016*** (0.0002) (8.48x10-5) (0.0001) (0.0002) male head (=1) 0.0455*** 0.0796*** 0.00255 0.00467 (0.00279) (0.0027) (0.0026) (0.0138) head married (=1) -0.141*** -0.137*** -0.0642*** -0.113*** (0.0026) (0.0024) (0.0007) (0.0032) hh member’s occupation "leaders/ managers" (%) 0.282*** 0.191*** -0.0657*** 0.586*** (0.0087) (0.0086) (0.0012) (0.0194) "professionals/ technicians" (%) 0.0107 -0.0399*** -0.0365*** 0.0203* (0.0076) (0.0112) (0.00207) (0.0113) "clerks/ service workers" (%) 0.233*** 0.211*** 0.234*** 0.413*** (0.0086) (0.0033) (0.0019) (0.0044) "agriculture/ forestry/ fishery" (%) 0.0540 (0.0401) 0.0219** (0.0102) 0.119*** (0.0014) 0.149*** (0.0145) "skilled workers/ machine operators" (%) 0.936*** (0.0259) 0.766*** (0.0203) 0.337*** (0.0024) 1.502*** (0.0116) "unskilled workers" (%) 1.412*** 0.509*** -2.696*** 3.610*** (0.0074) (0.0162) (0.0011) (0.0616) hh member’s educational level "no degree" (%) 0.239*** 0.157*** -0.0755*** 0.0899*** (0.0096) (0.0042) (0.0021) (0.0242) "primary school" (%) 0.434*** 0.440*** 0.323*** 0.349*** (0.0054) (0.0082) (0.0011) (0.0473) "lower secondary school" (%) 0.798*** 0.760*** 0.533*** 0.612*** (0.0056) (0.0041) (0.0013) (0.0462) "upper secondary school" (%) 0.816*** 0.927*** 1.055*** 0.948*** (0.0137) (0.0095) (0.0005) (0.0258) agbioforum, 21(3), 2019 | 12 lai and quang-thanh. — influence of new countryside construction program variable bottom 10 2nd decile 9th decile top 10 "college and above" (%) 1.421*** 1.605*** 1.204*** 1.829*** (0.00893) (0.0168) (0.00136) (0.0333) storm during the last year (=1) -0.0231*** -0.0248*** -0.0643*** (0.0034) (0.0033) (0.0034) storm in the last three years (=1) -0.0701*** (0.0069) -0.0873*** (0.0026) flood in the last three years (=1) -0.0267** (0.0127) -0.0242*** (0.0091) drought in the last year (=1) -0.0662*** (0.0044) drought in the last two years (=1) -0.264*** (0.0059) -0.512*** (0.0008) number of enterprises per 1000 commune members in 2001-2005 0.0782*** (0.0047) 0.0952*** (0.0017) 0.0372*** (0.0012) -0.256*** (0.0080) number of enterprises per 1000 commune members in 2006-2010 0.0171*** (0.0022) 0.0138*** (0.0012) 0.104*** (0.0013) 0.0565*** (0.0021) epidemic in the survey year (=1) -0.163*** (0.0056) -0.208*** (0.0010) storm in the last two years (=1) -0.163*** (0.0017) -0.0087* (0.0045) flood in the survey year (=1) -0.472*** (0.0037) drought in the last three years (=1) -0.0867*** (0.0011) epidemic in the last three years (=1) -0.250*** (0.0009) constant 8.803*** 8.948*** 10.32*** 8.582*** (0.0158) (0.0075) (0.0092) (0.0121) observations 1,358 1,358 1,358 1,358 note: standard errors in parentheses; *** p<0.01, ** p<0.05, * p<0.1. source: authors’ estimation from vhlss2010 conclusion the paper estimates the effect of nccp on household welfare in the mekong river delta of vietnam. it finds that nccp has a positive effect on household expenditure in all models, both in terms of expenditure level, and expenditure quintile. in all alternatives of the model with expenditure, results indicate that households in nccp-qualified commune have a higher real expenditure per capita of around 1.1 times. estimates of the differential impact of nccp between the lowest three deciles and the top three deciles in both small and large models indicate that households in nccp-qualified commune have a higher real expenditure per capita of around 41.5 percent for the bottom, 34.4 percent for the 2nd decile, and 33.9 percent for the 3rd decile. nccp likely affects the top at the most, about 63.7%. however, the effects on the 8th and 9th deciles are less when compared with those on the 2nd and the 3rd ones. while efforts were made to identify the impact of nccp, it is not possible to completely differentiate its impact from the spillover effect since nccp is said to be a profound and comprehensive social mobilization (in economic, socio-cultural development, productivity, living standards, lifestyle, customs, and 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(2004) “infrastructure and regional economic development in rural china”, china economic review, vol. 15, no. 2, pp. 203214. issn 1043951x. vietnam national assembly (2016) “monitoring report on the implementation of the national target program on new rural construction for the period of 2010-2015 and agricultural restructuring in vietnam”. agbioforum, 24(2): 136-148. ©2022 agbioforum empowerment of farmer community group in indonesian village together with students university in fruit plantation development suswati fakultas pertanian, universitas medan area, medan, sumatera utara, indonesia email: suswati@staff.uma.ac.id lailan tawila berampu fakultas ekonomi dan bisnis, universitas riau, pekanbaru, riau, indonesia due to reduced emphasis on farmer community groups, the indonesian agricultural sector is not developing. regarding agricultural education and fruit cultivation, the farmer community faces various obstacles. indonesian farmers have limited access to the most advanced technology. therefore, the current research investigates the direct effect of farmer access to technology, farmer education, and novel agronomic methods on developing fruit plantations in indonesia. in addition, this study aimed to examine the moderating effect of university agricultural research on farmer access to technology, farmer education, and innovative agronomic practices. this study's design is crosssectional, and its population consists of indonesian farmers. the results demonstrated that indonesian farmers are interested in gaining access to new technology, education, and agronomic approaches for fruit plants. this research is founded on an original model that addresses a research gap and substantially contributes to the body of knowledge. the outcomes of this study have significant practical and theoretical consequences that are crucial for effective implementation. additionally, this research includes limitations highlighted in the future directions section to present agriculture research researchers with a path forward. key words: fruit plantation, agriculture development, farmer community, farmer empowerment, agronomy practices 1. introduction advancement in the agriculture industry is essential for all nations whose economic progress is contingent on the agriculture sector (ayu palar et al., 2021). the world's economy is not sustainable due to various challenges in the agriculture industry (rondhi et al., 2018). the slow growth of the agriculture industry is due to a lack of technological innovation and the sector's reliance on traditional production methods (utami et al., 2019). the technological development of european nations is the driving force behind their agricultural progress (mardianto et al., 2019). in poorer nations, the agriculture sector receives less attention (molina-maturano et al., 2020). governments not focusing on sustainable agriculture policy are leading the agriculture sector down an unfavorable growth path (aacharya et al., 2020). corruption and the government's lack of interest in agriculture are also significant contributors to the sector's slow growth (jung et al., 2021). the government's job is to enhance the agricultural sector's growth for economic sustainability and progress (sekaran et al., 2021). less emphasis on the education of farmers is also problematic for the expansion and sustainability of the agriculture industry (rulli et al., 2019; sibuea et al., 2020; susilawati et al., 2021). attention to the agriculture sector is vital for the country's economic survival (amar et al., 2020; lubis et al., 2015; nugraha et al., 2019). indonesia's agricultural sector is experiencing a production problem since productivity is not improving strategically (jelsma et al., 2019). in addition to reducing indonesia's exports, the agriculture sector's production is mainly consumed by indonesians (danilwan et al., 2020; windarto et al., 2018). this has created a problem for indonesia's trade balance, as agriculture is considered the most vital industry for economic expansion (byrareddy et al., 2019). the indonesian government has shown little care for agricultural development, although other nations, such as thailand and malaysia, are actively advancing agricultural sector growth (berkelmann et al., 2018; maggasingang et al., 2020; pratamaa et al., 2020). appropriate improvement of agricultural growth facilities necessitates agricultural sector expansion (hakimah et al., 2019; santika, wilson, budiharta, kusworo, et al., 2019; tambunan et al., 2022). indonesia's economic viability can be enhanced by the agriculture sector's continued expansion (schoneveld et al., 2019). moreover, if indonesian farmers live in the community, they must be supplied with the required resources to enhance the agricultural sector's productivity (atrizka et al., 2022; purnomo et al., 2020). corruption in indonesia's agriculture sector has hindered its productive growth (kelley, 2018). the agricultural products of countries with no corruption in the agricultural sector are imported (rulli et al., 2019; wardhani et al., 2021). the research on the issues and growth of the agricultural sector investigated the various viewpoints on agricultural output. according to habibie et al. (2021), agricultural productivity is essential for the growth of the agricultural economy. similarly, (santika, wilson, budiharta, law, et al., 2019) found that corruption cannot be tolerated for the progress of the agriculture industry. prastiyo et al. (2020) stated that agricultural sector progress is attainable if the government works to give all facilities to farmers mailto:suswati@staff.uma.ac.id agbioforum, 24(2), 2022 | 137 suswati and berampu. — empowerment of farmer community group in indonesian village together with students university in… associated with the expansion and enhancement of the agricultural sector. according to khalil et al. (2019), the government is obligated to provide farmers loans for the agriculture sector's growth because these loans are essential for the productive development of goals. khatiwada et al. (2021) found that agricultural output is feasible if the government develops productively sustainable long-term policies. lakitan et al. (2018) also noted that agricultural production could be increased if the government productively subsidizes agricultural products. maimunah et al. (2018) concluded that the government must play a role in agricultural production to assist farmers. wijaya et al. (2018) reported that farmers with higher levels of education are increasing agricultural output. indeed, the current research in the literature addressed the many viewpoints on agricultural sector development. however, the studies have not analyzed the literature in the context of the new technological advancements, the education of farmers, the new practices and development of the agronomy sector, and the function of agricultural research laboratories. this research aims to examine the direct influence of farmer access to technology, farmer education, and innovative agronomic methods on the development of agriculture in indonesia. in addition, the purpose of this study was to examine the moderating effect of university agriculture research on the influence of farmer access to technology, farmer education, and innovative agronomic techniques on agriculture development. thus, the research is founded on an original model that addresses a research gap and substantially contributes to the body of knowledge. moreover, the findings of this research have significant practical and theoretical consequences that are crucial for the effective execution of the study. additionally, this research includes limitations highlighted in the future directions section to present agriculture research researchers with a path forward. 2. review of literature 2.1 agriculture development the expansion of the agricultural sector is essential for economic expansion (sibuea et al., 2020). due to agriculture's substantial contribution to the economy, the economic performance of countries that excel in the agricultural sector is superior (rondhi et al., 2018). the new technological innovation is vital for the agriculture sector's proper development, as it is required to enhance economic growth performance (utami et al., 2019). in addition, farmers are associated with the agriculture sector, and their economic circumstances are directly tied to the agriculture sector (mardianto et al., 2019). new research in the agriculture sector can boost the sector's productivity (molina-maturano et al., 2020; tanjung et al., 2022). 2.2 university agriculture research agricultural research is a means to enhance the productivity of the agriculture industry (aacharya et al., 2020). the universities of countries with a strong reliance on the agricultural sector are doing new research in university laboratories to promote agricultural growth in these nations (jung et al., 2021). the university's effective creation of seeds and plants is essential to expanding the agriculture industry (sekaran et al., 2021). to obtain a higher benefit from the agriculture sector, it is vital to preserving the new agricultural technology in a favorable manner (habibie et al., 2021). universities in europe's affluent nations have contributed significantly to the agriculture industry (santika, wilson, budiharta, law, et al., 2019). 2.3 farmer access to technology technological development is essential for the agriculture industry to expand (prastiyo et al., 2020). the notion of intelligent farming and growth arose with the agriculture sector's emergence when many countries changed to the agricultural technological innovation required for agriculture's productive growth (khalil et al., 2019). the agriculture sector must adapt to technology to enhance production (khatiwada et al., 2021). improved exports significantly contribute to the country's economic viability, aided by the higher crop yields from smart farming (lakitan et al., 2018). future technology is required for agricultural improvement, which is essential for the agricultural sector's expansion (maimunah et al., 2018). 2.4 farmer education indeed, farmers' education is vital to operate more efficiently in crop production (jelsma et al., 2019). educated farmers employ technology in agricultural production because they believe it is vital for intelligent growth (wijaya et al., 2018). moreover, farmers with access to pesticide information have significant logical options for land production (windarto et al., 2018). the role of the farmer is crucial to the expansion of the agriculture sector, and farmers in advanced and developed nations are working on the pattern of smart farming that is essential for the sector's productive growth (byrareddy et al., 2019). educated farmers can operate more efficiently than illiterate farmers (berkelmann et al., 2018). 2.5 new agronomy practices new agronomic procedures are essential to the agricultural sector's production (santika, wilson, budiharta, kusworo, et al., 2019). significant agricultural production exists in nations that have built centres for research and development to expand their agriculture industries (schoneveld et al., 2019). progress in agriculture is vital since it is used to obtain products more efficiently (kelley, 2018). modern agronomic approaches can enhance the performance of the agricultural industry (rulli et al., 2019). educated farmers are constantly enthusiastic about the development of the agriculture sector, which is essential for the efficient operation of this sector (nugraha et al., 2019). 2.6 hypotheses development figure 1 highlights the framework of this study, which is based on the model of agriculture development. according to ayu palar et al. (2021), technological improvement is agbioforum, 24(2), 2022 | 138 suswati and berampu. — empowerment of farmer community group in indonesian village together with students university in… required for increased crop yield. similarly, rondhi et al. (2018) emphasized that new technological advancements in the agricultural industry are required for the intelligent cultivation of crops. utami et al. (2019) found that farmers must have access to the latest technologies required to grow and develop their farms' productivity. mardianto et al. (2019) revealed that the smart method of growth improvement is viable when farmers in any country have access to the new technology required for growth enhancement. molina-maturano et al. (2020) concluded that the expansion of the agriculture sector is necessary for farmers to work more efficiently and that it is the responsibility of the government to equip farmers with the most advanced technological tools to increase the rate of their agricultural expansion. aacharya et al. (2020) noted that farmers' access to technology would benefit the agriculture industry's expansion. h1: farmer access to technology has a positive impact on agriculture development. jung et al. (2021) noted that any nation's educated farmers significantly impact the productive growth of the fields. farmers are essential to have access to education, according to sekaran et al. (2021), since if they were educated, they would adopt new technologies and methods of agricultural development. according to habibie et al. (2021), educated farmers are more productive at work than ignorant farmers who pay less attention to education. santika, wilson, budiharta, law, et al. (2019) concluded that education is vital for farmers because if they had the knowledge to do so, they would purchase the newest farming technology to increase production. prastiyo et al. (2020) noted that educated farmers perform significantly better than ignorant farmers whose labor receives less attention. khalil et al. (2019) emphasized that the lives of farmers must be enhanced through education to have optimal crop growth. h2: farmer education has a positive impact on agriculture development. according to khatiwada et al. (2021), new methods in the agronomy department are required to produce new plants and other seeds. according to lakitan et al. (2018), agronomy's contribution to the increase of agricultural products makes its position in agricultural production significantly. maimunah et al. (2018) concluded that agriculture's growth must be sustained since it may positively impact the country's economic development, which is made possible by the agronomy department's research and development. wijaya et al. (2018) noted that countries that have prioritized expanding agriculture in recent years have significantly increased their productivity. according to jelsma et al. (2019), agronomy institutes' progress and research of new agronomy methods make agricultural expansion possible. byrareddy et al. (2019) concluded that expansion in the agriculture sector is vital for farmers who desire the agronomy department's innovative farming practices to increase productivity. h3: new agronomy practices have a positive impact on agriculture development. according to santika, wilson, budiharta, law, et al. (2019), the research conducted in the laboratories of various institutions is essential for the production of agriculture development since the consequences of these activities are crucial for farmer development. schoneveld et al. (2019) highlighted that numerous universities in china and european nations are working diligently to develop the agriculture industry, which is essential for better agricultural practices. purnomo et al. (2020) stated that the growth of the agriculture sector is conceivable when the government encourages university labs to produce new seeds and pesticides in the agriculture sector. rulli et al. (2019) reported that effective trials in agronomy labs are important for producing new seeds required for improved agriculture. nugraha et al. (2019) concluded that in nations that do not provide the agriculture sector with effective economic growth, the advancement of the agricultural economy receives little attention. h4: university agriculture research moderates the relationship between farmer access to technology and agriculture development. according to kelley (2018)'s research, when farmers are trained through agriculture research and development seminars, they receive the required education to increase their output. frolova et al. (2021) concluded that modern nations must increase agriculture sector growth by significantly enhancing farming. rasmussen et al. (2008) claimed that farmers must be educated on the latest research conducted by university labs in the agriculture sector to improve the performance of the agriculture sector. dos santos et al. (2010) noted that wealthy nations are supplying farmers with the relevant information for their education, which is essential for farming in an intelligent manner. nugraha et al. (2019) also indicated that smart farming is possible if farmers are motivated and increase their output more effectively. teno et al. (2016) stated that a farmer's education enables them to use fewer resources more efficiently to increase productivity. h5: university agriculture research moderates the relationship between farmer education and agriculture development. the research by berkelmann et al. (2018) revealed that farmers must acquire and implement new technological advances in agronomy methods for crop production. frolova et al. (2021) observed that less-motivated farmers must attend university agriculture research facilities to observe the favorable application of technology to the agriculture sector for smart farming. according to nugraha et al. (2019), the director of a university agronomy lab is essential to deliver all relevant information to those involved in the growth of the agriculture sector to stimulate farmers. according to windarto et al. (2018), the success of the agriculture industry is contingent upon technological innovation and the implementation of productive agbioforum, 24(2), 2022 | 139 suswati and berampu. — empowerment of farmer community group in indonesian village together with students university in… employee work practices. indeed, nugraha et al. (2019) found that farmer education is vital; nevertheless, they must be provided with the required inflation by the authorized institutes to utilize the new pesticides in the agriculture expansion. h6: university agriculture research moderates the relationship between new agronomy practices and agriculture development. figure 1: agriculture development theoretical model 3. methodology this research is based on the development of the agriculture sector; therefore, the farmers of various villages in indonesia who are directly involved in agriculture production are the primary stakeholders. the study is based on "cross-sectional" data since it is the most efficient way to obtain relevant findings in a restricted time frame. in addition, the "quantitative approach" was used to collect data for this study since it is an appropriate way for the researcher to present empirical proof in the literature on the formed relationship and the study's findings. in this manner, the research employed the "likert scale" questionnaire since the rating scale assists respondents in providing accurate research data. consequently, the scale elements for each construct were developed from past research on agriculture development. before determining the "validity and reliability" of the items, this study examined the interrelationships between the variables. in this regard, the research employed the criterion "cronbach alpha > 0.70" for dependable items. following a significant " > 0.80" value, the research updated the items for farmer access to technology from misaki et al. (2016). following a significant " α> 0.79" value, the researchers also altered the items for farmer education from trede et al. (2000). in addition, this study updated the items for innovative agronomy techniques from dos santos et al. (2010) based on an " α> 0.91" value that was statistically significant. in addition, following the significant " α> 0.87" score, the researchers altered the items for university agriculture research from rasmussen et al. (2008). after a significant " α> 0.73" value for identifying its moderating effect on the study model, the researchers used teno et al. (2016)'s items for agricultural development. therefore, these goods were extremely "reliable and valid." due to the sizeable population of farmers in indonesia, "morgan's table" advised a sample size of 384 for this study's findings and conclusions. in addition, questionnaires were printed and sent to respondents to collect data. despite the farmers' lack of education, they are supported in data collection and response. the scale elements are further explained to the respondents to acquire accurate data. respondents completed 394 surveys and were assured that their information would not be shared with anyone else. they were also advised that personal information, including their names, ages, marital status, and annual income, would never be disclosed. this study utilized "smart pls" for data analysis because it is a dependable instrument in the social sciences. 4. results and data analysis 4.1 normality test this research has initially examined the "normality of data." field (2013) explains, "skewness is a measure of symmetry, or more accurately the lack of symmetry, whereas kurtosis is a measure of whether the data are heavy-tailed or light-tailed relative to a normal distribution". "a common guideline for skewness is that if the value is larger than +1 or less than –1, this indicates a significantly skewed distribution," as indicated by field (2013). "for kurtosis, if the number is greater than +1, the distribution is too peaked". thus, the research's data are normalized, and the findings are reported in table 1. farmer access to technology new agronomy practices university agriculture research farmer education agriculture development agbioforum, 24(2), 2022 | 140 suswati and berampu. — empowerment of farmer community group in indonesian village together with students university in… table 1. normality test measurements mean standard deviation excess kurtosis skewness fat1 3.242 1.515 -0.491 0.086 fat2 3.251 1.799 -0.57 0.437 fat3 3.519 1.884 -0.81 0.3 fat4 3.494 1.907 -0.792 0.385 fat5 3.537 1.73 -0.489 0.299 fe1 3.506 1.806 -0.688 0.233 fe2 3.498 1.833 -0.888 0.146 fe3 3.671 1.862 -0.772 0.192 fe4 3.706 1.863 -0.752 0.314 fe5 3.675 1.937 -0.787 0.354 nap1 3.567 1.885 -0.719 0.375 nap2 3.58 1.85 -0.628 0.358 nap3 3.61 1.892 -0.781 0.31 nap4 3.494 1.79 -0.469 0.451 nap5 3.537 1.92 -0.929 0.197 uar1 3.468 1.823 -0.647 0.314 uar2 3.649 1.776 -0.612 0.266 uar3 3.061 1.473 -0.084 0.598 uar4 3.156 1.501 0.464 0.884 uar5 3.221 1.429 0.866 0.932 ad1 3.143 1.439 0.534 0.792 ad2 3.104 1.379 0.558 0.679 ad3 3.19 1.497 0.353 0.707 ad4 3.117 1.459 0.542 0.831 ad5 3.009 1.42 -0.222 0.441 ad6 3.186 1.353 0.49 0.67 4.2 convergent validity in the second step, data reliability and validity are evaluated. thus, "factor loading (fl), composite reliability (cr), and extracted average variance (ave)" were taken into account. according to hair et al. (2013), "factor loading indicates how well an item represents the underlying construct, and it must be more than 0.70.". furthermore, hair et al. (2013) clarify that "cronbach's alpha (α > 0.70) is a measure of internal consistency, that is, how closely connected a set of items are as a group". according to hair et al. (2013), "composite reliability (cr > 0.70) is a measure of internal consistency in scale items, similar to cronbach's alpha". according to henseler et al. (2014), "average variance extracted (ave > 0.50) is a measure of the amount of variance captured by a construct concerning the amount of variance attributable to measurement error". the findings demonstrated the convergent validity of the study (table 2 and figure 2). figure 2. measurement model agbioforum, 24(2), 2022 | 141 suswati and berampu. — empowerment of farmer community group in indonesian village together with students university in… table 2. convergent validity variables items description fl cronbach's alpha cr ave agriculture development ad1 i want to increase the production of farming. 0.894 0.953 0.962 0.809 ad2 i believe that cheap technology can help me with better farming. 0.909 ad3 my production is increasing every year. 0.924 ad4 i can get information from the research lab for agriculture production. 0.931 ad5 agriculture production is necessary for economic development in the agriculture sector. 0.877 ad6 agriculture products can provide better revenue by exporting to developed countries. 0.861 farmer access to technology fat1 the government is providing useful technology. 0.904 0.941 0.955 0.809 fat2 technology is helpful in agriculture growth. 0.906 fat3 technology can increase the exports of agricultural fruits. 0.913 fat4 technology is easy to purchase. 0.895 fat5 we can get the technology for smart farming. 0.879 farmer education fe1 i have information about my crops. 0.925 0.947 0.960 0.826 fe2 i know the way i can use the technology. 0.909 fe3 i have information about pesticides. 0.896 fe4 i purchase seeds from cheap sellers. 0.901 fe5 i get support from the government for my crop production. 0.914 new agronomy practices nap1 new seeds are best for production. 0.910 0.944 0.957 0.816 nap2 smart farming helps generate more revenue. 0.888 nap3 green technology in agriculture is helpful for farmers. 0.922 nap4 green technology is easy to use for farming. 0.899 nap5 green production of crops is useful for economic sustainability. 0.897 university agriculture research uar1 university seeds are useful for farming fruits. 0.781 0.895 0.922 0.704 uar2 the university provides information about new products. 0.772 uar3 university research labs are increasing the production of cotton. 0.859 uar4 i purchase seeds from university research labs. 0.896 uar5 research labs are used for agriculture improvement. 0.879 4.3 discriminant validity in this phase of the investigation, "discriminant validity" was determined. according to gold et al. (2001), "discriminant validity evaluates whether concepts or measurements that are not meant to be connected are unrelated". gold et al. (2001) explain, "htmt is a measure of similarity across latent variables, and its threshold is debatable; the majority of articles propose a value below 0.90.". according to table 3's findings, it possesses discriminant validity. table 3. discriminant validity agriculture development farmer access to technology farmer education new agronomy practices university agriculture research agriculture development farmer access to technology 0.749 farmer education 0.704 0.793 new agronomy practices 0.674 0.779 0.789 university agriculture research 0.665 0.709 0.686 0.766 4.4 structural model using "t > 1.96 & p 0.05" to determine the validity of the developed relationship, the findings of the "structural model" have been employed at this step to determine the validity of the developed relationship. the study found that the farmer's access to technology has a good and significant effect on the development of agriculture; therefore, h1 is approved. in addition, the study determined that farmer education has a favorable and considerable impact on the development of agriculture. hence h2 is approved. in addition, the study determined that the new agronomic techniques have a favorable and significant impact on the development of agriculture; therefore, h3 is adopted. figure 3 and table 4 display the outcomes of the measurement model. 4.5 moderating impacts in this phase, the significance of moderating effects was evaluated. the data indicated that the moderating effect of university agriculture research favorably influences the favorable association between farmer access to technology and agricultural development and that hypothesis h4 is significant. graphically, this relationship is depicted in figure 4. 4.6 moderating impacts in this phase, the significance of moderating effects was evaluated. the data indicated that the moderating effect of university agriculture research favorably influences the favorable association between farmer access to technology agbioforum, 24(2), 2022 | 142 suswati and berampu. — empowerment of farmer community group in indonesian village together with students university in… and agricultural development and that hypothesis h4 is significant. graphically, this relationship is depicted in figure 4. second, the relevance of the second moderating impact was evaluated. the data demonstrated that the moderating effect of university agricultural research favorably influences the favorable association between farmer education and agriculture development, and hypothesis 5 is supported. graphically, this relationship is depicted in figure 5. thirdly, the relevance of the second moderating impact was evaluated. the data indicated that the moderating effect of university agriculture research favorably influences the favorable association between new agronomic techniques and agricultural development and that hypothesis h6 is significant. a graph depicting this association is shown in figure 6. 4.7 predictive relevance in this stage, the research has determined the strength of the research model. in this way, "q-square is predictive relevance, measures whether a model has predictive relevance or not (q² > 0) is good", explained by hair et al. (2013). according to the findings in table 5, the research has strong "predictive relevance". figure 3. structural model table 4. structural model original sample standard deviation t statistics p values status farmer access to technology -> agriculture development 0.193 0.093 2.073 0.039 accepted farmer education -> agriculture development 0.130 0.019 6.842 0.000 accepted new agronomy practices -> agriculture development 0.179 0.085 2.093 0.037 accepted moderating effect 1 -> agriculture development 0.127 0.032 3.968 0.000 accepted moderating effect 2 -> agriculture development 0.127 0.028 4.535 0.000 accepted moderating effect 3 -> agriculture development 0.140 0.022 6.363 0.000 accepted agbioforum, 24(2), 2022 | 143 suswati and berampu. — empowerment of farmer community group in indonesian village together with students university in… figure 4. moderating impact 1 figure 5. moderating impact 2 2.412 2.544 3.202 3.842 1 1.5 2 2.5 3 3.5 4 4.5 5 low farmer access to technology high farmer access to technology a gr ic u lt u re d ev el o p m en t moderator low university agriculture research high university agriculture research 2.475 2.481 3.265 3.779 1 1.5 2 2.5 3 3.5 4 4.5 5 low farmer education high farmer education a gr ic u lt u re d ev el o p m en t moderator low university agriculture research high university agriculture research agbioforum, 24(2), 2022 | 144 suswati and berampu. — empowerment of farmer community group in indonesian village together with students university in… figure 6: moderating impact 3 table 5. predictive relevance sso sse q² (=1-sse/sso) agriculture development 1386 459.525 0.668 5. discussion and conclusion the current study's conclusions are based on data analysis that indicates the significance of the association established by this research. all direct and moderating associations are considered significant in this study. hypothesis 1 demonstrated that farmer access to technology had a direct and positive effect on agricultural development, corroborating the findings of past agricultural research studies. according to byrareddy et al. (2019), an increase in technological advancement is essential for a rise in crop yield. similarly, berkelmann et al. (2018) underlined that the agriculture industry needs new technological developments to boost output rationally. schoneveld et al. (2019) concluded that farmers required modern technologies to expand and produce more on their farms. according to purnomo et al. (2020), farmers in any nation might increase their yields if they had the necessary technological advancements. kelley (2018) found that higher agricultural production is necessary for farmers to work more efficiently. the government must provide farmers with the most advanced technological equipment to improve agricultural productivity. kelley (2018) underlined that farmers' access to technology would facilitate their success in the agriculture industry. the h2 results revealed that farmer education had a significant direct and positive impact on agricultural development, corroborating the findings of prior agricultural research studies. rulli et al. (2019) underlined that educated farmers substantially impact any nation's agricultural output. nugraha et al. (2019) underlined that farmers must have access to knowledge since, after acquiring it, they are more likely to adopt innovative techniques for agricultural progress. according to nugraha et al. (2019), most farmers are more productive than farmers who lack education and place less value on it. kelley (2018) concluded that farmers require training because equipped with information, they would invest in cutting-edge farming technologies to boost productivity. misaki et al. (2016) underlined that educated farmers are significantly more productive than uneducated farmers, who receive minimal attention while working. trede et al. (2000) stressed the importance of farmers obtaining a higher level of education to enhance their quality of life and ensure that their crops thrive. the h3 findings demonstrated that novel agronomy methods had a significant direct and positive impact on agricultural development, corroborating the findings of prior agricultural research investigations. according to windarto et al. (2018), new agricultural department procedures are necessary for new plants and other seeds to grow. santika, wilson, budiharta, kusworo, et al. (2019) believe that agronomy plays an essential role in agricultural production because it contributes to the growth of agricultural commodities. nugraha et al. (2019) 2.439 2.517 3.203 3.841 1 1.5 2 2.5 3 3.5 4 4.5 5 low new agronomy practices high new agronomy practices a gr ic u lt u re d ev el o p m en t moderator low university agriculture research high university agriculture research agbioforum, 24(2), 2022 | 145 suswati and berampu. — empowerment of farmer community group in indonesian village together with students university in… concluded that agriculture's expansion must be sustained since it can favorably influence the nation's economic and social development, which is made possible by the agronomy bureau's research and development efforts. nugraha et al. (2019) noted that nations that have recently focused on expanding the agricultural sector had beneficially increased their productivity. according to teno et al. (2016), the expansion of agriculture is made feasible by agronomy institutes' invention and analysis of new agronomic techniques. frolova et al. (2021) determined that farmers need the agricultural sector to expand and want the agronomy department's newly developed farming practices to improve production. according to h4 results, university agriculture research has a substantial moderating effect between farmer access to technology and agricultural development. this newly discovered moderating link has been validated by past agricultural study findings. jelsma et al. (2019) assert that because the outcomes of these practices are essential for the growth of farmers, research is necessary for the laboratories of many universities to promote agriculture. according to maimunah et al. (2018), several institutions in indonesia and thailand are working to improve the agriculture industry, which is crucial for the best practices of the business. wijaya et al. (2018) concluded that the government is accountable for university labs working on the agriculture business to create new seeds and pesticides that are important for the growth of the agriculture industry. according to lakitan et al. (2018), successful trials in agronomy laboratories aid in developing new seeds essential for improved agriculture. khatiwada et al. (2021) stated that nations that do not support the agricultural sector with strong economic growth place little emphasis on increasing agricultural production. the h5 results revealed that university agriculture research has a strong moderating effect between farmer education and agricultural development. this recently discovered moderating link is also confirmed by findings from past agricultural research investigations. according to jung et al. (2021), peasants who attend the agribusiness research and development department's workshops obtain the essential skills to boost the profitability of their products. sekaran et al. (2021) concluded that modern societies must drastically enhance farming to raise the agriculture industry's profitability. khalil et al. (2019) claimed that peasants must be informed of recent research undertaken by academic laboratories in the field to increase the agriculture industry's productivity. prastiyo et al. (2020) noted that wealthy nations offer peasants pertinent knowledge for their training, which is vital for proper farming employing an intelligent strategy and innovation. santika, wilson, budiharta, law, et al. (2019) added that intelligent farming is possible when farmers are motivated and enhance their products more effectively. as a result of their education, farmers use fewer resources wisely, resulting in higher output, according to habibie et al. (2021). according to the findings of hypothesis 6, university agriculture research has a considerable moderating effect on the relationship between innovative agronomic methods and agricultural development. this newly discovered moderating link has been validated by past agricultural study findings. ayu palar et al. (2021) underlined that peasants must acquire and implement the latest technological breakthroughs in agronomy techniques for crop production. according to mardianto et al. (2019), producers who lack the motivation to embrace successful technological practices could visit university agriculture research centres to observe successful applications of technology in precision agriculture. molina-maturano et al. (2020) claimed that the head of the university's agricultural lab must provide all pertinent information to individuals involved in expanding agricultural production to stimulate farmers. aacharya et al. (2020) argued that technological advancements and efficient employee practices could increase the agricultural industry. rondhi et al. (2018) stated that farmers must be informed and obtain the right training from certified institutions to use new pesticides in growing agriculture. 6. theoretical and practical implications this research is based on important theoretical implications that significantly advance knowledge. the researcher did not address the newly discovered association in their earlier papers. initially, the study presented the direct and influential influence of farmer access to technology on agriculture development. second, the study revealed farmer education's direct and influential impact on agriculture development. thirdly, the study revealed new agronomic methods' direct and influential impact on agricultural development. moreover, important moderating linkages have been introduced by this relationship. the study revealed the moderating effect of university agricultural research on the relationship between farmer access to technology and agricultural progress. fifthly, the study revealed the moderating effect of university agricultural research on farmer education and agricultural development. the study concluded by highlighting the moderating effect of university agricultural research on the relationship between innovative agronomic methods and agricultural development. based on these extraordinary ramifications, the model given in this study is an essential contribution to the literature on agriculture development as it presents freshly established relationships within it. in addition, this research model is notable because previous research did not contribute to the body of information with these substantial consequences; it represents a new addition to the understanding of farmer education. this research is also notable from a practical standpoint, as it offered farmers substantial practical implications for agriculture development. according to the research, farmers in indonesia should have access to new technology for fruit plantation because this technology is essential for expanding the agricultural sector. in addition, the study indicated that new development in the agriculture sector is required and that farmers in indonesia must be educated on the innovative farming practices essential for smart agbioforum, 24(2), 2022 | 146 suswati and berampu. — empowerment of farmer community group in indonesian village together with students university in… farming. this is a crucial means for farmers to obtain new development. indeed, the function of agricultural education would improve farming practices because they require agricultural knowledge. in addition, new agronomy practices must be ensured for farmers since when they are educated to play a significant role in agricultural growth, the new practices will increase their farming practices. in addition, the researchers indicated that collaboration between the farmer community and equipping them with newly created agricultural tools and cultivation techniques are essential for achieving higher agricultural yields. the indonesian government must enable universities to make substantial contributions to the agriculture sector's sustainable development. 7. future directions even though the results demonstrated that indonesian farmers are interested in gaining access to new technology, education, and agronomic practices in fruit plantations, this research is based on a novel model that addresses a research gap and makes a substantial contribution to the body of knowledge. however, this research contains limitations noted in the future directions section to provide agriculture research researchers with a roadmap for the future. consequently, future research must extend this paradigm and add to the existing body of knowledge. the studies must examine the moderating effect of sustainable agriculture on farmer access to technology and agricultural progress in fruit plantations. in addition, research is required to examine the moderating effect of government policies of sustainable development goals on the relationship between farmer access to technology and agricultural progress in fruit plantations. in addition, research must be conducted on the moderating effect of fair prices on farmer access to technology and agricultural progress in fruit plantations. future research must also study the moderating effect of green agriculture on the relationship between innovative agronomic methods and agricultural development. these future directions will lead scholars to make substantial contributions to the literature on agriculture development. references aacharya, r., & chhipa, h. 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(mainieri, barnett, valdero, unipan et al., 1997) hence it is necessary for human beings to change the ways of living with nature. in all the educational and academic fields numerous researchers have been conducted to devise better ways to reduce the destruction of environment. for example ojea and loureiro (2007) showed through their research that norms and values help in formation of attitudes towards ecological economics. the obligations a person feels or perceives towards protection of the environment are known as personal norms (chua et al., 2016). whenever a human being accepts a responsibility toward something and realize the consequences that would result otherwise a norm is formed (schwartz, 1977). human beings are seeing to adult altruistic behaviors in the development of obligations whenever and enormous activated and it leads them. this is the reason why scientists and resources have had great interest in norms specifically personal norms in human behavior and environmental studies. affecting the environment there has not been a single type of norm that affects or influences it (lam & chen, 2006; robertson & barling, 2013). the reason of interest in norms is that it helps to understand and explain human behaviors for instance the research indicates that how a person behaves towards his or her environment depends on the personal norms he or she has (clark, kotchen, & moore, 2003; sahin, 2013). personal norms leads to two types of other norms pro-personal norms and pro-social norms. p. stern (2000) viewed and researched on personal norms as a means to influence social norms in relation to environmental studies. he moreover suggested that believes and values have greater influence on environmental norms. individual norms or a personal norm mailto:r.shibli@ammanu.edu.jo mailto:s.saifan@ammanu.edu.jo mailto:shukri@msu.edu.my https://orcid.org/0000-0001-5688-4392 mailto:indang@msu.edu.my https://orcid.org/0000-0002-1376-7126 mailto:alik@msu.edu.my https://orcid.org/0000-0002-2531-7720 agbioforum, 23(2), 2021 | 124 shibli, saifan, yajid, ariffin and khatibi. — the role of agricultural extension services and a new ecological paradigm in determinants … collectively leads to development of social norms. hence pro environmental social norms are affected by personal norms. major studies focus on the impact created by personal norms and pro environmental social norms in agriculture and farming (p. c. stern, dietz, abel, guagnano et al., 1999). the demographics regarding some of the crops are not known to farmers. hence to build expectations or expect performance to a certain extent is difficult for farmers (bergtold, duffy, hite, & raper, 2012). this may develop constrain for farmers to skew the expectations regarding the benefits or yield they would have from a certain crop harvesting (gould, saupe, & klemme, 1989). perceived crop yield is seeing to be affected by risk attitudes and expectations towards environmental conservation (featherstone & goodwin, 1993). perceived yields are seemed to be affected by the farmer’s expectations towards environmental benefits and costs. high costs are likely to decrease the cultivation of crops with low perceived crop yield. research conducted on maryland farmers give results that the pcy of the crop decreases by 14% if the cost to harvest the crop increases by 1%. it explains that whenever the crop cost increase the perceived crop yield for farmers would decrease (lichtenberg, 2004). the reason is that the farmer's not only focus on explicit costs but rather the implicit cost as well. the opportunity costs would be considered as the input towards the crop cultivation (pannell, marshall, barr, curtis et al., 2011). the actual yield of crops and the perceived yields create huge difference as one is dependent on what is actually harvested and the later depends on how the farmers perceive the scenario. it is seen that farmers would perceive crop yield as high for the crops which make them earn more, would have a positive impact on the perceived gains. similarly the environmental benefits associate with crops are dependent on the gains the production of crop would give them (snapp, swinton, labarta, mutch et al., 2005). advices related to agriculture and agricultural system of provided to the farmers through set of services these services are known as agricultural extensions services (chetthamrongchaia, foosirib, & jermsittiparsertc, 2019). the main goal of these services is to improve the economic growth ultimately. to improve food security, enhance the standard of living, increase agriculture productivity, and promote agriculture it is important that farmers should be delivered scientific research and other related knowledge to farming (benin, nkonya, okecho, randriamamonjy et al., 2011). the importance of adopting agriculture extension services system are well known to too many countries regarding the help achieving the agricultural objectives set by the governments (österle, koutsouris, livieratos, & kabourakis, 2016). in development of agricultural extension services, a single stakeholder cannot achieve anything thus it is a vital that different or all stakeholders participate in achieving the objective. for example, the customers, landowners, management, government, and clients etc. development of agricultural extension services systems for the leads to increase or developing of perceived crop yield (chetthamrongchaia et al., 2019). the products of agricultural extension services like agribusiness centers and agri clinics can help farmers change the way they perceive the problems in the face in everyday work but utilization of information and knowledge. the increase of growth rate of crops and their perceived crop yield is due to successful utilization of agricultural extensions services. for example use of agro machinery fertilizers pesticides seeds and other techniques would increase the productivity of farmers and the expertise in the field (aker, ghosh, & burrell, 2016). the use of agriculture extension services is not limited to production or harvesting only but also the services can help farmers to promote an environment that is based on agricultural well-being and utilization of better farming styles. the most common belief of individuals relating to the environment’s current state with respect to their mental states is known an ecological paradigm (chua et al., 2016). ecological paradigms have been observed to affect the proenvironmental norms. the behavior of human beings towards the environment or its components is dependent on the belief that has been formed over the years. the discussion or debate on ecological conservation and betterment would help in creating or forming behaviors of individuals towards the environment (bruvold, 1973). this article explains how perceived crop yield (pcy) and proenvironmental social norms (psn) are affected by ecological paradigms (ep) and agricultural extension services (aes) and how already present personal norms mediates that effect of ecological paradigms and agriculture extension services on perceived crop yield and pro-environmental social norms. 2. literature review 2.1. social attribution theory this theory sheds light on the reason behind the variation in the human behavior. the theory suggests that human behavior is influenced by the situations, and which can be internal attributes or external attributes. when considering the internal attribution, the reason behind the variation in the human behavior, it is associated with the personal and internal characteristics. the two key elements theory relates with the internal attributions are perceived behavior control and personal norms. perceived behavior control is referred to the individual’s perception of ease of difficulty to perform as task of personal capability (weiner, 2010). however personal norms are regarded as the self-concept and feelings related to moral obligation of people in which they find performing a behavior is mandatory. the attributions that are part of human behavior because of some event or experience and are outside a person’s control. social norms are considered as a component of external attributes and significantly shape the behavior of people (mgm, ab yajid, & shukri, 2020). social norms are considered as mutually shared standards of the acceptable behavior in the social groups or societies. social norms are considered as main pivotal forces that lead to the human behavioral changes. norms are the part of societies in order to create the social roles that each individual plays. in addition to this personal norms are the part of each person’s own personality and is the sense of ethical obligation that shapes the behavior and actions of agbioforum, 23(2), 2021 | 125 shibli, saifan, yajid, ariffin and khatibi. — the role of agricultural extension services and a new ecological paradigm in determinants … each person according to their personal opinion regarding ethics (kelley & michela, 1980). these reflect the internal attributions and moral obligations that shape an individual’s behavior which also has a considerable influence in decision making of the individual. personal norms are said to play a mediating role in relation between awareness, consciousness and social standards that are set by the society. stronger personal norms result in the proenvironmental behavior which then shapes the decision making of the person. 2.2. agriculture extension service and perceived crop production farmer’s perception of crop production depends on certain factors that are based on the farming skills and farming techniques of the farmers. however, a correct knowledge of these factors that influence the crop production will ultimately enhance the farmer’s perception. this is achieved by the agriculture service extension, which is being practiced all around the world to polish and amplify the farming skills and abilities of farmers (labarthe, 2009). this aims to educate the farmers regarding techniques that can escalate the crop production, thereby affecting the perception of the farmers regarding the crop yield. a correct and sufficient knowledge of land preparation, seeding, watering, fertilizers and use of pesticides and herbicides can help not only to positively influence the perception of the farmers but also the boosts the crop productivity and crop yield (emmanuel, owusu-sekyere, owusu, & jordaan, 2016). agents of agriculture service extension service work to enhance the farming techniques and influence the farmer’s perception towards the crop production. 2.3. mediating role of personal norms in relation between agriculture extension service and perceived crop production human being social animals are greatly influenced by the social as well as personal norms. personal norms are the set values of a person according to the personal ethical standards that shape the actions and behavior of the people (shenaar-golan & walter, 2020). in addition to this the decision taking abilities of people are also under the outsizing effect of the personal norms. farmer’s also take the decisions of the farming aspect under the influence of their personal norms (mukherjee & maity, 2015). the goal of agriculture extension service is to assist the farmers regarding farming practices which also has an impact on their personal norms. farmer’s perception regarding the crop production are also influenced by the personal norms and personal believes of dealing with farming techniques (anderson & feder, 2007; birkhaeuser, evenson, & feder, 1991). acceptance of the education and guidance received by the agriculture service extension and its practical implication is also affected by the personal norms which in turn influence the farmers perception about the crop production. 2.4. agriculture extension service and proenvironmental norms with the increasing concern about the negative impacts of the industrialization and other human activities towards the environment, the idea of sustainable development is the best solution. this aims at development while posing no threats and negative harms towards the environment (ali & rahut, 2013). the agriculture service extension aims to educate the farmers regarding the farming skills and techniques to uplift their livelihood as well as improve the crop production. along with this the agriculture service extension also aims to create awareness in the farmers regarding the negative effect of human activities towards the environment (anderson & feder, 2004). the agents of agriculture service extension also guide the farmers to use the farming techniques that pose no threat to the environment and also help them in the practical implication of these techniques. the practice of agriculture service extension across the world can greatly influence the farmer’s practices towards the pro-environmental norms in farming. 2.5. mediating role of personal norms in relation between agriculture extension service and pro-environmental norms personal norms influence the behavior, actions, attitude and decision taking abilities of the people. the agriculture service extension works with the goal to influence the farmers towards the new farming techniques that are introduced by the science and technology (terblanche, 2013). these can not only boost the crop production but also the crop production but also aim to improve the livelihood of the farmers. in addition to this the agents of agriculture service extension also provide knowledge and create awareness in the farmers regarding the proenvironmental behavior and the practices and norms that affect the pro-environmental behavior (cerdán-infantes, maffioli, & ubfal, 2008). therefore, acceptance of these norms and behavior is mediated by the personal norms on the farmers towards the practice of pro-environmental farming techniques. 2.6. ecological paradigm and perceived crop value and mediating role of personal norms ecological paradigm is the most frequent measure used towards the environmental concern that has been rising due to the human activities. over the period of last century rapid developments by the human beings have led to main concerns towards the environmental stability as well as impacts towards the human health. these activities also include the farming techniques and agriculture that pose a threat towards the environment (farrow, grolleau, & ibanez, 2017). new ecological paradigm and human norms that strongly effect the behavior of the farmers towards the new farming techniques that pose no environmental threat and cause no crisis to the environment (zeng, tian, he, & zhang, 2019). environmental attitude of the farmers is of prime importance in this regard. their personal norms play an important role which influence their perception towards the crop production. 2.7. ecological paradigm and pro-environmental norms conventionally the farming practices and agriculture used to focus of increasing the crop yield and maximizing the profit, however these farming practices in agriculture led agbioforum, 23(2), 2021 | 126 shibli, saifan, yajid, ariffin and khatibi. — the role of agricultural extension services and a new ecological paradigm in determinants … to emission of toxic gases that led to greenhouse effect ultimately resulting in the global warming (chua et al., 2016). however, with time the idea of green and ecologically safe farming practices was introduced in the agriculture. the perception of sustainable agricultural and adoption of such techniques that pose little or no harm to the environment depend on the idea and awareness in the farmers. ecological paradigm is the endorsement of the pro-ecological point of view to safe the ecosystems (krettenauer & lefebvre, 2021). therefore, awareness regarding pro-environmental norms in the agriculture can lead to the positive outcomes and adoption of proenvironmental farming practices in the farmers that can lead to stability of ecosystems in the environment. the concept of new ecological paradigms can greatly influence the practice of pro-environmental behavior and norms in agriculture which will lead to development of sustainable society. 2.8. mediating role of personal norms in relation between ecological paradigm and proenvironmental norms sustainable agriculture is the idea of agriculture and farming practices which pose no risk to the ecosystem and also maintain the biodiversity of the planet. the idea of sustainable agriculture is considered a positive alternative towards the conventional farming techniques. to ensure the adoption of these farming techniques on the basis of the new ecological paradigm, educating the farmers towards new scientific and technological farming is of great importance (price & leviston, 2014). personal norms also play an important role in this aspect. personal norms shape the behavior of people and also their decisions taking abilities. strong personal norms will influence the farmers towards the adoption of the new techniques in the light of the new ecological paradigm which will ensure the pro-environmental norms as a part of agriculture and farming practices (bissing-olson, fielding, & iyer, 2016). therefore, to enhance the pro-environmental behavior in the farmer’s awareness regarding ecological paradigm and sustainable environment is of prime importance in which personal norms play a mediating role. the following hypothesis can be generated for this study. h1: agriculture extension service effects perceived crop production. h2: personal norms play a mediating role in relation between agriculture extension service and perceived crop production. h3: agriculture extension service effects proenvironmental norms. h4: personal norms play a mediating role in relation between agriculture extension service and proenvironmental norms. h5: ecological paradigm effects perceived crop production. h6: personal norms play a mediating role in relation between ecological paradigm and perceived crop production. h7: ecological paradigm effects pro-environmental norms. h8: personal norms play a mediating role in relation between ecological paradigm and pro-environmental norms. figure 1: theoretical framework 3. research methodology 3.1. research method the selected method for this research is the quantitative research method, and following this method, the researcher has quantitatively analyzed the impacts of ecological paradigm and agricultural extension services on perceived crop production and pro environmental social norms respectively. moreover, the researcher has also quantitatively analyzed the impacts of personal norms as a mediator in the relationship between ecological paradigm and perceived crop production and in between ecological paradigm and pro environmental social norms. similarly, the mediating impact of personal norms is considered among agricultural extension services, perceived crop production and pro environmental social norms (auer, beretvas, colton, hill et al., 1977). various previous studies have suggested the adoption of quantitative research method while the major objectives are to analyze the impacts of the independent variables on dependent variables quantitatively (crossan, 2003). the research philosophy that is used by the researcher is positivist research philosophy, which has assisted the researcher in keeping personal bias opinion and interference in the research data collection, analysis and interpretation to a minimum level (mkansi & acheampong, 2012). the results are completely based upon the collected and analyzed data. furthermore, the approach employed by the researcher is the deductive research approach, and it is applied because the researcher wanted to first propose hypothesis statements on the basis of the review of previous studies, then to collect relevant data, analyze it and lastly reject or accept the statements of hypothesis on the basis of the results (mkansi & acheampong, ecological paradigm agricultural extension services personal norms proenvironmental norms perceived crop production agbioforum, 23(2), 2021 | 127 shibli, saifan, yajid, ariffin and khatibi. — the role of agricultural extension services and a new ecological paradigm in determinants … 2012). according to previous researchers as well, in the case of this method and such a design, the best suited philosophy of research is the positivist research philosophy (holden & lynch, 2004; kenneth, 2000). following these methods, the most suitable time horizon of research is cross sectional time horizon, which is employed by the researcher as well, following the studies of (östlund, kidd, wengström, & rowadewar, 2011; park & park, 2016). 3.2. sampling and population the population of interest for the researcher is the malaysian agricultural sector, and the target sample involves participants from malaysian agricultural organizations. from these organizations, the sample is captured with the help of purposive sampling technique, and the decided sample size is equal to 320 participants from the targeted organizations. the purposive sampling technique is applied by the researcher as it has helped the researcher in keeping the participants significantly relevant with the personal judgment of the researcher and also with the questions and objectives of the research (quah, 1993; rutberg & bouikidis, 2018). so, the frame of sampling is the agricultural sector of malaysia whereas, the sampling unit for this study involves one participant from the agricultural sector of malaysia (saunders, lewis, thornhill, & bristow, 2015). 3.3. measures for the questionnaire, there are 15 measures of ecological paradigm adopted from the study of zhu and lu (2017), for agricultural extension services, 4 items are adopted from the study of diawara, dicko, coulibaly, n’diaye et al. (2018), for personal norms, three items are adopted from the study of (diawara et al., 2018). whereas, for measuring perceived crop production, 2 items are adopted from the study of fang, ng, and zhan (2018) whereas, for pro-environmental social norms, 2 items are adopted from the study of (fang et al., 2018). 3.4. data collection and procedures the tool that is adopted for data collection in this study is a structured questionnaire, so, in this study, the researcher has collected the data with the help of self-administered questionnaire-based survey technique (soiferman, 2010). the data is collected by the researcher himself and the participants are supervised, for unbiased and completely conscious opinions and responses from the participants. after the collection of data, only 305 valid responses have been obtained by the researcher, which are later on arranged in the software microsoft excel (saunders et al., 2015). 3.5. data analysis for the analysis of the data, the arranged data is imported from microsoft excel to the software spss, in this software, the researcher has arranged and labeled the data, and after that, different tools and techniques of analysis are applied for the purpose of analyzing the data to obtain the outcomes of the study (soiferman, 2010). the researcher has applied demographic analysis, kmo and bartlett's test, descriptive analysis, convergent validity and reliability, rotated component matrix, correlation analysis, regression analysis and confirmatory factor analysis (suen, huang, & lee, 2014; tongco, 2007). after the analysis of the data, the results are imported into microsoft word in the form of tables, these tables are arranged, and interpretation is provided regarding every result and every test applied on the data (suen et al., 2014; tongco, 2007). 3.6. ethical considerations the researcher has formulated and presented the consent forms to the participants, according to which, all of the participants are completely and vividly informed regarding the objectives and background of this research. the identity of the participants is kept private and confidential, and the collected data is only utilized by the researcher for fulfilling the objectives of the current research, and this data will not be utilized for any other purpose as well. 4. data analysis and interpretation 4.1. demographics the table below presents with the details of the demographics of the respondents, focusing on the gender, age and experience of the respondents, the frequency and percentage of these factors are provided as well (woiceshyn & daellenbach, 2018). table 1: demographical details dimensions frequency percent age 20-25 40 13.1 26-30 60 19.7 31-35 110 36.1 36-40 53 17.4 40+ 42 13.8 total 305 100.0 experience 2 years or less 191 62.6 above 2 years 69 22.6 above 4 years 45 14.8 total 305 100.0 gender male 130 42.6 female 175 57.4 total 305 100 according to the table above, 40 of the participants were of age between 20 to 25, 60 of the participants were of age between 26 to 30, 110 of the participants were of age between 31 to 35 years, 53 of the participants were of age between 36 to 40 years and 42 of the participants were of age above 40 years. according to the table, the experience of 69 of the participants was above two years, the experience of 191 participants was two years or less and the experience of 45 of the participants was more than four years. moreover, 42.6% of the participants were males whereas, 57.4% of the participants were females, which means that most of the females were responsive towards the study rather than the males. 4.2. descriptive statistics the table below is representing the descriptive analysis or statistics of the study, representing with the total number of responses, the minimum values, maximum values, mean values standard deviation values and the skewness and standard error values (diawara et al., 2018). agbioforum, 23(2), 2021 | 128 shibli, saifan, yajid, ariffin and khatibi. — the role of agricultural extension services and a new ecological paradigm in determinants … table 2: descriptive statistics n minimum maximum mean std. deviation skewness statistic statistic statistic statistic statistic statistic std. error ep 305 1.00 7.00 3.4397 1.00268 -.717 .136 aes 305 1.00 7.00 3.6781 1.31108 -.633 .136 pn 305 1.00 7.00 3.0048 1.47301 -.747 .136 pcp 305 1.00 7.00 4.7312 1.61237 -.752 .136 pen 305 1.00 7.00 3.8322 1.53237 -.742 .136 according to the table above, the total valid responses are equal to 305, the mean values lie in between 1.00 and 7.00, which are both the minimum and maximum values, which means that the data is normal and normally distributed. no value is extremely low or high, all of the values significantly lie around the mean values. the significantly moderate level of standard deviation and skewness is representing that the data is not very much skewed or dispersed around the mean value, most of the values lie all around the mean value and are also close to the mean point. which means that the data is normal and normally distributed. 4.3. kmo and bartlett's test the table below is representing the results for the kmo and bartlett's test, according to the standard, the value for kaiser-meyer-olkin measure of sampling adequacy should be more than 0.8 whereas the value of bartlett's test of sphericity should be less than 0.05, so, the results for this study are presented below (fang et al., 2018). table 3: kmo and bartlett's test kaiser-meyer-olkin measure of sampling adequacy. .948 bartlett's test of sphericity approx. chi-square 11364.400 df 1071 sig. .000 according to the table above, the value for kaiser-meyerolkin measure of sampling adequacy is equal to 0.948, which is obviously more than 0.8, which means that the standard is fulfilled, and the model and the collected data is significant. moreover, the value for bartlett's test of sphericity is equal to 0.000, which is also less than 0.05, which means that the outcomes and the model are both significant and the data is good to go for further testing and analysis. 4.4. rotated component matrix the table below is representing the results for rotated component matrix, which is establishing a relationship in between the items of this study, related to all the variables and the components of the study, which are presented in the rows horizontally (fang et al., 2018). table 4: rotated component matrix component 1 2 3 4 5 ep1 0.755 ep2 0.687 ep3 0.706 ep4 0.735 ep5 0.768 ep6 0.782 ep7 0.754 ep8 0.741 ep9 0.706 ep10 0.747 ep11 0.756 ep12 0.755 ep13 0.746 ep14 0.722 ep15 0.788 aes1 0.619 aes2 0.698 aes3 0.736 aes4 0.709 pn1 0.775 pn2 0.785 pn3 0.834 pcp1 0.722 pcp2 0.768 pen1 0.714 pen2 0.751 according to a standard, the values should be equal to 0.7 or more than 0.7, in this case, it can be observed that around all of the values are equal to or more than 0.7 like the value of the first component with pen1 is equal to 0.714, the value of the second component with pcp1 is equal to 0.722, and similar is the case with all of the other items and components as well. this establishes a significant relationship among the items and the components, which means that the model and the data are both significant and the data is further good to go for more testing and analysis. 4.5. convergent validity and reliability the results for the convergent validity and reliability are represented in the table below, according to a standard, the value of cr is supposed to be more than 0.7 whereas the value for ave is supposed to be equal to or more than 0.5. whereas the value for msv is supposed to be lower than the value of msv (zhu & lu, 2017). table 5: convergent validity and reliability cr ave msv ep 0.981 0.543 0.250 aes 0.991 0.537 0.327 pn 0.944 0.546 0.363 pcp 0.924 0.534 0.250 pen 0.914 0.595 0.249 in this case, it can be observed that all of the values represented against all of the variables for cr are more than 0.7, whereas all of the values against all of the variables for ave are more than 0.5. moreover, the values of msv are also lower than the values of ave, which means that the results are significant, and the data is good to go for further testing and analysis. 4.6. correlations the table below represents the results for correlation analysis and the values for cronbach alpha as well these values are supposed to be more than 0.9 according to a standard (zhu & lu, 2017). agbioforum, 23(2), 2021 | 129 shibli, saifan, yajid, ariffin and khatibi. — the role of agricultural extension services and a new ecological paradigm in determinants … table 6: correlations ep aes pn pcp pen cronbach alpha ep pearson correlation 1 0.912 sig. (2-tailed) n 305 aes pearson correlation .371** 1 0.987 sig. (2-tailed) 0 n 305 305 pn pearson correlation .433** .609** 1 0.946 sig. (2-tailed) 0 0 n 305 305 305 pcp pearson correlation .346** .468** .481** 1 0.954 sig. (2-tailed) 0 0 0 n 305 305 305 323 pen pearson correlation .346** .468** .481** 1 1 0.934 sig. (2-tailed) 0 0 0 0 n 305 305 305 305 305 **. correlation is significant at the 0.01 level (2-tailed). it can be observed from the table above that there is significant correlation present in between all of the variables, the correlation is significant among the variables and with the variable itself as well. furthermore, according to the standard, the values for cronbach alpha against every variable is significant as well. 4.7. model fit indices the table below is representing the results for model fit indices or confirmatory factor analysis, the observed and threshold values are presented to test the validity of the model and the data (zhu & lu, 2017). table 7: model fit indices cfa indicators cmin/df gfi ifi cfi rmsea threshold value ≤ 3 ≥ 0.80 ≥ 0.90 ≥ 0.90 ≤ 0.08 observed value 1.924 0.803 0.917 0.916 0.054 according to the table above, cmin has presented observed value exactly according to the threshold value, which makes it valid, the value of gfi is 0.803, which is more than 0.80, the value of ifi is equal to 0.917, which is more than 0.90, the value for cfi is equal to 0.916, which is more than 0.90 as well. so, all of these values are valid and similar is the case with the value of rmsea as well. 4.8. regression the table below is representing the regression results, representing the impacts of the variables on each other along with the results of the testing of the hypotheses (diawara et al., 2018). table 8: regression results regression estimate s.e. c.r. p hypothesis decision ep → pcp .236 .055 5.557 .000 h5 accepted aes → pcp .207 .046 5.132 .000 h1 accepted ep → pen .338 .029 11.157 .000 h7 accepted aes → pen .348 .039 10.157 .000 h3 accepted mediation estimate s.e. c.r. p hypothesis decision ep*pn → pcp .268 .041 5.440 .000 h6 accepted aes*pn → pcp .155 .043 4.189 .000 h2 accepted ep*pn → pen .174 .044 4.120 .000 h8 accepted aes*pn → pen .195 .054 5.120 .000 h4 accepted according to the table above, the impact of the ecological paradigm on perceived crop production is significant and is equal to 23%, which means that with every 1% increase in the ecological paradigm, there will be 23.6% increase in the perceived crop production. the impact of agricultural extension services on perceived crop production is significant as well, as the significance value is lower than 0.05. furthermore, the impact of ecological paradigm on pro-environmental social norms and the impact of agricultural extension services on the pro-environmental social norms is significant as well. with values equal to 33.8% and 34.8% respectively. this means that with every 1% increase in the ecological paradigm and agricultural extension services, the pro environmental social norms will enhance by 33.8% and 34.8% respectively. the mediating role of personal norms in between ecological paradigm and perceived crop production and in between ecological paradigm and pro environmental social norms is significant and equal to 26.8% and 17.4% respectively. furthermore, the mediation of personal norms in the case of agricultural extension services, perceived crop production and pro environmental social norms is significant as well and is equal to a value of 15.5% and 19.5% respectively. so, in accordance with the results, all of the proposed statements of hypothesis are accepted. 5. discussion and conclusion 5.1. discussion the increased use of machines and technologies for production purposes as well as many other purposes, has led to an increase in the emission of gases which are found to be toxic for the environment as well as for the people. this hazardous situation has led to the promotion of pro-environmental social norms which play a significant role in promoting sustainable development leading to the formation of a “green environment”. this research study was also conducted to determine the impact of different variables such as ecological paradigm, agricultural extension services and personal norms on the perceived crop production and pro-environmental social norms taking personal norms as the mediating variable. agbioforum, 23(2), 2021 | 130 shibli, saifan, yajid, ariffin and khatibi. — the role of agricultural extension services and a new ecological paradigm in determinants … the results obtained from this research study showed that the ecological paradigm has significant impact on perceived crop production as well as on pro-environmental social norms. according to ateş (2020), the ecological paradigm provides the necessary education about the environment to the individuals. both the negative as well as positive aspects of the environmental changes are discussed which help the individuals to understand the safety of the environment. thus, this leads to the sensitivity of the individuals towards the environment, and they prohibit themselves from harming it. this leads to promotion of pro-environmental social norms. thus, chwialkowska, bhatti, and glowik (2020), stated that the farmers plant more trees and crops to improve the sustainability as they consider themselves responsible for keeping the environment safe and healthy. however, the agricultural extension services have also found to have a significant impact on perceived crop production and pro-environmental social norms. according to fornara, molinario, scopelliti, bonnes et al. (2020), the perception of the farmers regarding the production of crops, is dependent upon a no. of factors. some of these important factors include: the skills of the farmers, the new techniques used by the farmers and many others. the extension services provide the necessary information to the farmers as well as educate them to obtain the perceived crop production (olya & akhshik, 2019). such improved gain of knowledge also encourages them to promote the pro-environmental social norms for sustainable development. the main impact of sustainable development is to retain the natural resources, and this can only be done if proper balance is maintained between the nature and human consumption. for this reason, many countries around the world, are promoting “green environment” by encouraging more production of the crops as well as other natural resources. however, the personal norms are considered to have a very important significant impact on perceived crop production and pro-environmental social norms as the belief and the value system is highly supported by the farmers even in today’s world. it has been observed that the personal norms of the farmers help in improving the understanding of ecology paradigm that leads to better perception of crop production as well as pro-environmental social norms. according to gholamrezai, aliabadi, and ataei (2021), the values of the farmers support them to improve the crop productivity to increase the sustainable development for preventing the world from the external harms of chemicals and many other toxic substances. this encourages the proenvironmental social norms by keeping the environment safe and healthy. however, li and wu (2020), also stated that the personal norms help in the proper understanding of the knowledge as well as education provided through extension services for improving the crop production which ultimately leads to forwarding of the pro-environmental social norms (sharma & gupta, 2020). all the efforts put in by the farmers help in improving the overall crop production thus keeping the environment safe and healthy leading towards the sustainable development in the world. 5.2. conclusion along with the economic growth, the sustainable development is also considered to be very important in today’s world of destruction and development. many economists as well as scholars have worked to determine the significance of sustainable development in order to retain the natural resources for future generations. this research study was also conducted to determine the impact of different variables on pro-environmental social norms which play an important role in promoting the sustainable development (trautwein, babazade, trautwein, & lindenmeier, 2021). the results obtained from this research study showed that both agricultural extension services as well as ecology paradigm has significant relationship with perceived crop production as well as with the pro-environmental social norms. the personal norms are found to play a significant mediating role in this context. it has been observed that the extension services also educate the farmers about the harmful effects of human activities on the nature and how it can destroy the natural resources of the world in coming years if no proper measures are taken within time. such services also encouraged them to use the techniques which are not harmful for the environment to increase the productivity of the crops thus leading towards the sustainable development. the personal beliefs as well as values of the farmers, are found to have a strong influence on them as it impacts their behaviors towards the technologies, they are using to gain profits. the sense of responsibility helps in promoting the pro-environmental social norms in the agricultural sectors around the world. 5.2.1. limitations and future research indications even though people are well aware of the significance of “green environment”, but still very limited studies are conducted to determine different means to improve the environment in order to promote sustainable development. this research study will help in providing a base for the future research studies in order to have a proper direction while carrying out the study to promote better and effective results as these results could help in improving the overall environmental conditions in the society. the pro-environmental social norms are considered to play a vital role in promoting the sustainable development. however, only a few variables were discussed in this research study. however, for future research studies, other variables such as the impact of natural resources, their access etc. should also be considered as the main focus of sustainable development is to retain the natural resources. this research study was conducted in the context of malaysia leading to restricted results. however, for the future research studies, the cross-sectional data should be obtained and well analyzed in order to determine the differences in the developing and the developed countries in order to improve such conditions so that it could lead the world towards the sustainable development. 5.2.2. implications of the research this research study helped in changing the views of the farmers towards sustainable development. it has helped in agbioforum, 23(2), 2021 | 131 shibli, saifan, yajid, ariffin and khatibi. — the role of agricultural extension services and a new ecological paradigm in determinants … developing different policies to promote the sustainable development. however, along with the agricultural sectors, the significance of the sustainable development was also being taught in the schools making people aware of it at a national level. different technologies were developed which improved the crop production without harming the surrounding environment. this helped in promoting the pro-environmental social norms which led to the sustainable development. the sessions for encouraging 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(2017). re-evaluation of the new ecological paradigm scale using item response theory. journal of environmental psychology, 54, 79-90. doi:https://doi.org/10.1016/j.jenvp.2017.10.005 https://doi.org/10.1108/jima-03-2021-0082 https://doi.org/10.1080/00461520903433596 https://doi.org/10.1108/qrom-06-2017-1538 https://doi.org/10.1108/qrom-06-2017-1538 https://doi.org/10.1080/09593330.2019.1574907 https://doi.org/10.1080/09593330.2019.1574907 https://doi.org/10.1016/j.jenvp.2017.10.005 agbioforum, 24(1): 41-49. ©2022 agbioforum role of technology adoption, labor force and capital formation on the rice production in malaysia *irwan shah zainal abidin school of economics, finance and banking, universiti utara malaysia email: irwanshah@uum.edu.my https://orcid.org/0000-0002-9435-5800 muhammad haseeb taylors business school (tbs), taylors university malaysia email: scholar_economist@yahoo.co.uk https://orcid.org/0000-0002-0307-6751 rabiul islam school of international studies, universiti utara malaysia email: rabiul@uum.edu.my https://orcid.org/0000-0002-9840-8754 lee wen chiat faculty of business and management, universiti teknologi mara (uitm) sarawak branch email: wenchiat@uitm.edu.my https://orcid.org/0000-0003-3049-5211 *corresponding author rice production is getting global attention due to its significant role in economic growth (gross domestic product), and this aspect shows its importance and needs. thus, the current article examines the impact of technology adoption, labor force, human capital and capital formation on rice production in malaysia. the current article extracted the secondary data from world development indicators (wdi) and statista databases and extracted data from 1991 to 2020. the current study examines the unit root using the augmented dickey-fuller (adf) test and investigates the association among constructs using the autoregressive distributed lag (ardl) model. the results indicated that technology adoption, labor force, human capital, and capital formation have a positive and significant linkage with rice production in malaysia. this study helps the upcoming researchers in investigating this topic in the future and also guides the policymakers in establishing the policies related to rice production using technology adoption, labor force, human capital and capital formation factors. key words: technology adoption, labor force, human capital, capital formation, rice production, the malaysian economy. 1. introduction rice production has great significance in the world. it contributes to economic development, protection of the environment, and health of the people by providing them with nutritious food. the production of rice raises earnings for the government; it contributes to the country's gross domestic product significantly, it creates many job opportunities for the farmers and workers as there are many activities to be performed in land preparation for the cultivation of the crop, paddy transplanting, harvesting, and cleaning of the rice and increasing the purchasing power develops prosperity within the country (goodman, 2020). rice is the world's most significant food crop. more than half of the world's population eats rice as their primary source of nutrition. many of them are also at risk from increased rice costs. more than 3.3 billion people in developing countries rely on rice for more than twenty percent of their calories. rice produces 15% of global human protein and 21% of global human calories per capita. although rice protein has a great nutritional quality, it has a low protein level. rice also contains vitamins, fiber, and minerals, albeit milling reduces all elements except carbs (tsujimoto, rakotoson, tanaka, & saito, 2019). and keeping the atmosphere clean and the water level in the soil in balance contributes to environmental quality. the improvement in rice production provides resources for present use and arranges for a sustainable country's development (abbas & mayo, 2021). rice production improvement is dependent on several factors, including technological adoption, labor force, human capital, and capital development. numerous technological breakthroughs have been made in crop production, particularly rice cultivation, ranging from rice field preparation to rice milling. adopting these technologies in place of traditional rice production procedures increases both the quantity and quality of rice produced (van oort & zwart, 2018). rice production entails a variety of labor-intensive procedures. the increase in the labor force facilitates the performance of rice production operations and contributes to the achievement of high rice production (liang, yang, xu, & hu, 2021). human capital development aims to strengthen human resources' education, knowledge, training, experience, and cognitive and physical abilities. thus, as a result of human capital development, an efficient labor force and management increase the efficiency of rice production and increase rice volume with higher quality. capital formation is a term that refers to a growth in the production of capital goods such as machinery, instruments, raw materials, and other natural resources inside a country during a specified period. promoting capital formation within the country enables farmers to produce large rice (maraseni, deo, qu, gentle, & neupane, 2018). the current study evaluates technology adoption, labor force, human capital, and capital accumulation in malaysian rice production. malaysia is a developing upper-middle-income economy, with a gdp of $415.375 billion anticipated for 2022. rice is one of the most important crops in japan and many other asian countries. malaysia's rice production volume was predicted to reach 1.51 million metric tons in 2020, according to 2020 data. rice is the country's staple food. malaysia's rice farming mailto:irwanshah@uum.edu.my https://orcid.org/0000-0002-9435-5800 mailto:scholar_economist@yahoo.co.uk https://orcid.org/0000-0002-0307-6751 mailto:rabiul@uum.edu.my https://orcid.org/0000-0002-9840-8754 mailto:wenchiat@uitm.edu.my https://orcid.org/0000-0003-3049-5211 agbioforum, 24(1), 2022 | 42 abidin, haseeb, islam and chiat. — role of technology adoption, labor force and capital formation on the rice… system directly employs over one million people and indirectly employs the bulk population. peninsular malaysia accounts for 85.5% of total paddy production in malaysia. iada pp, mada, kerian, seberang perak, kada, barat laut selangor, ketara, and kemasin are the primary rice producing areas in malaysia (harun, hanafiah, & aziz, 2021). rice farming began around 10,000 years ago in east asia. after decades of development and improvement, rice cultivation has been modernized via new technology techniques and machines. in malaysia, rice production technology such as germination nursery trays for seed planting and nursery, tractor, transplanter, furrow opener, weeder, combine harvester, reaper binder, huller, and destoner is being introduced and implemented. nonetheless, malaysia has paid little attention to implementing contemporary technology in rice cultivation (akhtar, masud, & afroz, 2019). figure 1 illustrates some statistics about rice output in malaysia. figure 1: rice production in malaysia in malaysia, rice is the most favored crop as a source of nutritious food and crop production is carried on within the country on a large scale. still, the crop production is not enough to meet the food need and contribute to the country's exports and foreign exchange. the objective of the present study is to give ways to boost rice production within the country. so, the study aims to analyze the influences of technology adoption, labor force, human capital, and capital formation on rice production. rice production has been a favorite topic to discuss among scholars. still, the present study is a great contribution to the agriculture literature. 1) in the previously conducted literature, technology adoption, labor force, human capital, and capital formation impacts on rice production have been addressed. but nowhere the research covers the simultaneous analysis of technology adoption, labor force, human capital, and capital formation role in rice production. so, the present study makes a distinction in literature to explore the influences of all these factors on rice production. 2) in prior literature, the studies have either discussed the role of technology and physical resources or human resources while analyzing crop production. the current study contributes to the literature, which gives equal significance to physical and human resources for rice production. 3) the selection of malaysia as the context of analysis for the impacts of technology adoption, labor force, human capital, and capital formation on rice production is a significant addition to the literature. the rest of the paper is composed in the following manner: in the 2nd portion, the literature review on the impacts of technology adoption, labor force, human capital, and capital formation on rice production is presented. in the third portion, the study methodology, including the methods to attain data and the process of analysis of nexus among given factors, have been given. then, study results are found and compared with those of other studies. in the end, the study's implication, the conclusion in short, and limitations are given. 2. literature review rice cultivation is critical to economic growth and development in practically all countries, particularly those in the asian region. it ensures food security, provides nutritious food, and protects the environment. as a result, it safeguards the health of humans and other living species. rice production also generates jobs, raises the standard of life, stimulates other linked industries such as seed preparation, fertilization, and manufacturing of technologies or other instruments, increases rice exports, and increases government revenue (asravor, wiredu, siddig, & onumah, 2019). both human and physical resources influence rice production efficiency. the current study examines the function of human and physical agbioforum, 24(1), 2022 | 43 abidin, haseeb, islam and chiat. — role of technology adoption, labor force and capital formation on the rice… resources in rice production, including technology adoption, labor force, human capital, and capital development. rice production efficiency is improved by adopting novel technology specific to rice cultivation, an increase in labor force employment, an increase in human capital, and an increase in capital creation. the relationship between technological adoption, labor force, human capital, capital formation and rice production is crucial in the literary world. the following section summarizes the literature on the effects of technology adoption, labor force composition, human capital, and capital development on rice output. chandio, shah, sethi, and mushtaq (2022) did a study on sustainable rice production in which they examined the effects of the labor force, fertilizer usage, and planted area, as well as various climate parameters. the data were gathered from a sample of asia's major rice-producing countries between 1961 and 2016. the heterogeneous panel cointegration test, dols, examined the connection between the selected factors and rice production. the study concludes that labor has a considerable positive effect on the sustainability of rice production. the increased labor force in rural areas increases the availability of workers for rice farming. when the number of workers increases at any step of rice production, such as land preparation, seed planting, and harvesting, the labor may be done more efficiently, which adds to sustainable rice production. shekhawat, rathore, and chauhan (2020) studied the impact of the labor force on rice output in a country. at various stages of rice production, such as field preparation and cleaning, paddy transplanting, reaping, stacking, handling, threshing, rice cleaning and hauling, and rice preparation after harvesting, employing an efficient labor force increases productivity and ultimately results in higher quality production. thus, labor force participation had a beneficial effect on rice production. tu, can, takahashi, kopp, and yabe (2018) examined the role of labor force inefficient rice production in a study on factors influencing the adoption of ecofriendly rice production. a survey of 202 rice farmers in the vietnamese mekong delta was conducted to ascertain the effects of labor force membership in agricultural cooperatives or clubs, farming experience, perceived ease of use, perception of biodiversity loss, and perceived price differential on eco-friendly rice production. this study reveals that laborers who exhibit these characteristics are more likely to use ecologically friendly manufacturing procedures, potentially improving rice quality. thus, the labor force has a beneficial effect on rice output. chen et al. (2020) literary workout investigates the worker force's influence on rice production efficiency. the study suggests that when enterprises engaged in rice cultivation can hire more labor and more efficient labor, they can increase production and improve rice nutrition. as a result, the labor force has a favorable relationship with rice productivity. through a deep investigation, bashir and yuliana (2019) identify rice production and consumption factors. the authors analyzed the influences of human capital, labor force, wages, urban population, wetland, and rice prices on rice production and consumption in indonesia over the period 1990-to 2014. the data regarding the research was gathered from the central bureau of statistics (bps). the model is based on an ols estimator's multiple linear regression equation. the study reveals that human capital impacts rice production over the period selected for analysis. the countries where the human capital is being paid much attention to different aspects like knowledge, training, skills development, and cognitive abilities, an active and efficient labor force can be provided for rice production who not rely on the traditional ways of rice production but also gets proficient in utilizing modern technological resources. chandel, khan, li, and xia (2022) examine human capital influences rice production. they find that improved human capital offers a workforce in various sectors of rice production with suitable training on how to manage rice production fields and undertake rice production operations. rice productivity improves with such a workforce. according to the findings, capital formation has a favorable relationship with rice output. in an article on financial development and climate change's role in agricultural production, chandio et al. (2022) investigate the impact of institutional quality, human capital, and renewable energy on rice production. the research survey was towards 4 asean economies, indonesia, the philippines, malaysia, and thailand, from 1990 to 2016, to analyze the impacts of institutional quality, human capital, and renewable energy through second-generation modelling techniques and the csardl model. the study implies that human capital is positively bound to rice production. when human resources are taught in such a way that environmentally friendly knowledge is developed, environmentally friendly rice producing practices become more prevalent. rice output increases when clean materials and environmentally friendly procedures are used. through empirical research, devkota et al. (2020) assess the alternative technological crop establishment methods in the sustainability development of rice production systems. for conducting this study, an empirical survey was administered to 652 households in odisha, india, in 2016. this study compares puddling and manual transplanting (ptr), a traditional way of rice production to dry direct-seeded rice (dsr) and machine transplanted rice (mtr). the study finds that adopting new technologies based on rice production methods like dsr and mtr in place of the traditional method of rice production like ptr is more efficient and cost-effective because the modern methods give better rice production with the minimum resources and number of laborers employed. achandi et al. (2018) examine the relationship between technology adoption and rice production. the study demonstrates that agricultural innovations are critical. in rice production, the adoption of specific agbioforum, 24(1), 2022 | 44 abidin, haseeb, islam and chiat. — role of technology adoption, labor force and capital formation on the rice… technologies at various stages of the rice production process, such as field preparation for rice planting, rice paddy transplantation, rice harvesting, and other postharvest operations. this saves time, resources, and rice wastage. as a result, technology adoption makes a significant contribution to rice output. according to ojo, baiyegunhi, adetoro, and ogundeji (2021), precision farming is used in agricultural production. it entails using gps, rice production monitoring technology, and variable rate application technologies to more precisely apply agricultural inputs to improve growth, reduce expenses, and minimize environmental degradation. precision farming, which is based on technology or technical processes, increases the country's rice production. according to song et al. (2021), the increased use of technologies for various rice production operations includes land selection or preparation for rice cultivation, rice paddy transplantation, reaping, stacking, handling, threshing, and cleaning and hauling, improves the quality and volume of rice production. capital formation refers to the increase in real capital accumulation in a country. to put it another way, capital formation entails the creation of more capital goods, such as factories, machinery, instruments, transportation equipment, materials, electricity, and other infrastructure, all of which are needed in future commodities production (abdul-rahaman, issahaku, & zereyesus, 2021). rice production contains different smaller individual production processes based on raw materials like seeds and fertilizers, technology of different sorts, and mechanical instruments. so, capital formation provides resources like technology, instruments, seeds, fertilizer, and many other machines to enhance rice crop production and grains (samoy-pascual et al., 2021). the literary article of takahashi, mano, and otsuka (2019) investigates the impacts of capital formation on rice production. this study proclaims that when a country's capital goods output, such as raw materials, machinery, and instruments, rises through production or imports, rice production rises as well. the use of higher-quality raw materials, faster machinery, and the most up-to-date tools boosts land and labor productivity. as a result, more rice can be produced in the same amount of time. with an empirical analysis, mishra, bairagi, velasco, and mohanty (2018) integrate the relationship of abiotic stress and access to capital goods on rice production efficiency. information regarding abiotic stress and access to capital goods related to rice farming production efficiency in cambodia. the study states that there may be adverse impacts of droughts or floods on the production of rice crops. if the country is proficient in capital formation or can have the capital goods from outside sources, the impacts of the imbalanced weather pattern can be controlled and the rice production efficiency can be maintained. hence, capital formation plays a positive role in sustaining rice production efficiency. 3. research methodology the article examines the impact of technology adoption, labor force, human capital and capital formation on rice production in malaysia. the current article extracted the secondary data from wdi and statista databases and extracted data from 1991 to 2020. the current study uses the adf test to examine the unit root and investigate the association among constructs using the ardl model. the authors have established the equation using understudy constructs as given: 𝑅𝑃𝑡 = 𝛼0 + 𝛽1𝑇𝐴𝑡 + 𝛽2𝐿𝐹𝑡 + 𝛽3𝐻𝐶𝐼𝑡 + 𝛽4𝐶𝐹𝑡 + 𝑒𝑡 (1) where; rp = rice production t = time period ta = technology adoption lf = labor force hci = human capital index cf = capital formation the current research has taken rice production as the predictive variable and measured it as the logarithm of rice production in a million metric tons. in addition, the current research has taken four predictors such as technology adoption measured as high technology export (% of manufactured exports), labor force measured as labor force participation rate (% of the total population age 15 to 64 years), human capital measured as hci (scale 0 to 1) and capital formation measured as the capital formation (% of gdp). table 1 shows the measurements and sources. table 1: variables with measurements s# variables measurement sources 01 rice production rice production in million metric tons statista 02 technology adoption high technology export (% of manufactured exports) wdi 03 labor force labor force participation rate (% of total population age 15 to 64 years) wdi 04 human capital human capital index (scale 0 to 1) wdi 05 capital formation capital formation (% of gdp) wdi the current research has executed the correlation matrix that shows the directional association among variables. in addition, the present article has also applied the variance inflation factor (vif) test to examine multicollinearity. the equations are given as under: agbioforum, 24(1), 2022 | 45 abidin, haseeb, islam and chiat. — role of technology adoption, labor force and capital formation on the rice… r2 y 𝑌𝑖𝑡 = 𝛼0 + 𝛽2𝑋2𝑖𝑡 + 𝛽3𝑋3𝑖𝑡 + 𝛽4𝑋4𝑖𝑡 + 𝛽5𝑋5𝑖𝑡 + 𝑒𝑖𝑡 (2) 𝑗 = 𝑅𝑌 2, 𝑅𝑋1 2 , 𝑅𝑋2, 2 𝑅𝑋3, 2 𝑅𝑋4, 2 𝑅𝑋5 2 (3) 𝑇𝑜𝑙𝑟𝑎𝑛𝑐𝑒 = 1 − 𝑅𝑗 2𝑉𝐼𝐹 = 1 𝑇𝑜𝑙𝑒𝑟𝑎𝑛𝑐𝑒 (4) moreover, the current research has also executed the adf test to investigate the unit root among the variables. the stationarity checking is necessary to select the appropriate model. the equation is given below: 𝑑(𝑌𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑌𝑡−1 + 𝑑(𝑌𝑡(−1)) + ɛ𝑡 (5) in addition, the stationarity among variables has been examined individually. thus, the separate equations are given for each variable as under: rice production 𝑑(𝑅𝑃𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑅𝑃𝑡−1 + 𝑑(𝑅𝑃𝑡(−1)) + ɛ𝑡 (6) technology adoption 𝑑(𝑇𝐴𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑇𝐴𝑡−1 + 𝑑(𝑇𝐴𝑡(−1)) + ɛ𝑡 (7) labor force 𝑑(𝐿𝐹𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐿𝐹𝑡−1 + 𝑑(𝐿𝐹(−1)) + ɛ𝑡 (8) human capital index 𝑑(𝐻𝐶𝐼𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐻𝐶𝐼𝑡−1 + 𝑑(𝐻𝐶𝐼𝑡(−1)) + ɛ𝑡 (9) capital formation 𝑑(𝐶𝐹𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝐶𝐹𝑡−1 + 𝑑(𝐶𝐹𝑡(−1)) + ɛ𝑡 (10) the stationarity results exposed that some variables are stationary at the level, but some are stationary at the first difference, which is the best condition for applying the ardl model (kisswani & zaitouni, 2021). in addition, the ardl model provides the short and long-run results among variables together (sharma, shrivastava, rohatgi, & mishra, 2021). moreover, the ardl also controls the autocorrelation and heteroscedasticity effects (atmaca & karadaş, 2020). the equation is given below: ∆𝑅𝑃𝑡 = 𝛼0 + ∑𝛿1∆𝑅𝑃𝑡−1 + ∑𝛿2∆𝑇𝐴𝑡−1 + ∑𝛿3∆𝐿𝐹𝑡−1 + ∑𝛿4∆𝐻𝐶𝐼𝑡−1 + ∑𝛿5∆𝐶𝐹𝑡−1 + 𝜑1𝑅𝑃𝑡−1 + 𝜑2𝑇𝐴𝑡−1 + 𝜑3𝐿𝐹𝑡−1 + 𝜑4𝐻𝐶𝐼𝑡−1 + 𝜑5𝐶𝐹𝑡−1 + ɛ1 (11) 4. research findings the current research has executed the correlation matrix that shows the directional association among variables. the results indicated that technology adoption, labor force, human capital, and capital formation have a positive and significant linkage with rice production in malaysia. table 2 presents the correlation matrix. table 2: matrix of correlations variables lrp ta lf hci cf lrp 1.000 ta 0.543 1.000 lf 0.109 -0.299 1.000 hci 0.201 0.201 0.302 1.000 cf 0.599 0.622 0.493 0.411 1.000 in addition, the present article has also applied the vif test to examine multicollinearity. the results indicated that the values of vif are lower than five, and values of reciprocal of vif are larger than 0.20 and exposed no multicollinearity. table 3 presents the vif results. table 3: variance inflation factor vif 1/vif lrp 3.092 0.323 ta 2.879 0.347 lf 2.009 0.498 hci 1.652 0.605 cf 2.620 0.382 mean vif 2.450 . moreover, the current research has also executed the adf test to investigate the unit root among the variables. the results indicated that the lrp, ta and hci are stationary at the level, and lf and cf are stationary at first difference. table 4 presents adf results. table 4: unit root test augmented dickey-fuller test (adf) level t-statistics p-values lrp i(0) -2.192 0.040 ta i(0) -2.229 0.033 lf i(1) -6.201 0.000 hci i(0) -2.001 0.047 cf i(1) -5.877 0.000 agbioforum, 24(1), 2022 | 46 abidin, haseeb, islam and chiat. — role of technology adoption, labor force and capital formation on the rice… the bound test was also executed to investigate the cointegration among variables. the results exposed that the 6.822 calculated f-statistics value is higher than the critical values at the five percent significance level. table 5 presents ardl bound test results. table 5: ardl bound test model f-statistics lag level of significance bound test critical values i(0) i(1) rp/ (ta, lf, hci, cf) 6.822 4 1% 7.119 7.723 5% 6.342 6.620 10% 5.322 5.891 the results of the ardl model indicated that technology adoption, labor force, human capital, and capital formation have a positive and significant linkage with rice production in malaysia in the short run. in addition, the r square value indicated that 49.1 percent of variations in rice production are due to all the predictors used in the study. table 6 presents short-run associations. table 6: short run coefficients variable coefficient std. error t-statistic prob. d(ta) 1.653 0.439 3.765 0.012 d(lf) 1.109 0.411 2.698 0.032 d(hci) 0.982 0.301 3.262 0.018 d(cf) 2.092 0.901 2.322 0.037 cointeq(-1)* -1.422 0.527 -2.698 0.032 r-squared 0.491 mean dependent var -0.055 adjusted r-squared 0.462 s.d. dependent var 2.622 the results of the ardl model indicated that technology adoption, labor force, human capital, and capital formation have a positive and significant linkage with rice production in malaysia in the long-run. table 7 presents long-run associations. table 7: long term coefficients variable coefficient std. error t-statistic prob. ta 1.882 0.493 3.817 0.011 lf 3.102 0.872 3.557 0.017 hci 2.091 0.910 2.298 0.034 cf 0.830 0.305 2.721 0.024 c 0.672 0.203 3.310 0.21 5. discussions the findings imply that technology has a beneficial effect on rice output. these findings corroborate balwinder et al. (2020) observation that rice production is a multi-step process. all of these stages necessitate the use of specialized services. certain technology in these locations for specific services benefits the completed products produced in all of these rice production zones. these findings are corroborated by nguyen, grote, and nguyen (2019), who demonstrate that increasing the use of technologies for various rice production processes, including land selection or preparation for rice production, rice paddy transplantation, reaping, stacking, handling, threshing, cleaning, and hauling, improves rice production quality and volume. additionally, the data suggested that the labor force has a beneficial effect on rice production. these findings corroborate smith and mohanty (2018) assertion that rice production is a lengthy process comprising numerous phases. increased workforce utilization improves and accelerates production operations at these levels. increased workforce capacity not only increases output but also improves its quality. these findings are also consistent with komatsu, saito, and sakurai (2022), who demonstrate that increasing the labor force decreases time wastage and, with increased efficiency, produces more rice with fewer inputs. the results indicated that human capital has a positive relation to rice production. these results are supported by donkor and owusu (2019), which highlight that the improved human capital provides the workforce in different areas of rice production who have proper training on how to manage the rice production field and perform rice production activities. such a labor force improves the productivity of rice. the results indicated that capital formation has a positive relation to rice production. these results are in line with pike and grosse (2018), when the production of capital goods like raw material, machines, and instruments increases through production or imports, the activity in rice production increases. the use of betterquality raw materials, fast machines, and the latest tools increase land and labor productivity. so, within the same period, more rice production can be attained. these results also match with rayamajhee, guo, and bohara (2021), which shows that the tendency to enhance the capital formation within the country results in the creation of agbioforum, 24(1), 2022 | 47 abidin, haseeb, islam and chiat. — role of technology adoption, labor force and capital formation on the rice… fertile soil and irrigation system. the presence of more pieces of fertile land and a better irrigation system enhances the country's capacity to produce rice. 6. implications the current study makes a lot of theoretical contributions. this study explores the influences of technology adoption, labor force, human capital, and capital formation on rice production. in prior literature, technology adoption, labor force, human capital, and capital formation role in rice production have been examined. the present study, which amalgamates technology adoption, labor force, human capital, and capital formation on rice production, adds to the existing literature. the present study examines rice production and the role of technology adoption, labor force, human capital, and capital formation in it the economy of malaysia, which in itself is a great addition to the literature. the current work has significant empirical implications for emerging economies that rely heavily on crop production, as it proposes a set of strategies for improving crop quality. this report advises the government to prioritize technology improvements, capital formation, and human capital development inside the country in order to boost rice production. this study assists future researchers in exploring this problem further and also assists policymakers in developing policies connected to rice production by examining elements such as technology adoption, labor force, human capital, and capital formation. it is also a handbook for rice farmers on how to advance their careers through the benefits of technology adoption, labor force development, human capital development, and capital formation. 7. conclusions the study aimed to analyze how technology adoption, labor force, human capital, and capital formation affect rice production. using the quantitative research method, information about the technology adoption, labor force, human capital, and capital formation and their influences on rice production was collected from malaysia. the study outcomes from the empirical research on malaysia indicated that technology adoption, labor force, human capital, and capital formation are positively associated with rice production. the results revealed that using peculiar technology in the preparation of land, paddy transplanting, harvesting, and post-harvesting processes enhances rice production. the results stated that though the use of technologies in the modern farming industry is getting higher, the labour to run these technologies and carry on many production processes is still required. the increase in the strength of the labor force makes it possible to expand rice production. the results also showed that the improvement of human capital, which includes education, health protection of humans, skills development, and professional training, provides an efficient workforce for the management of rice farms and the production of rice. moreover, the increase in capital formation within the country enhances the raw material and other resources for farming. so, an increase in capital formation enhances rice production. 8. limitations the present study also has some limitations, expected to be removed in future literature. the study examines only the impacts of technology adoption, labor force, human capital, and capital formation on rice production. the study throws no light on other factors like geographical conditions, financial development, and international trade for examining rice production. future must analyze more factors that affect rice production for comprehensive study. and the present article analyzes the role of technology adoption, labor force, human capital, and capital formation in rice production for a limited period. this provides little information on technology adoption, labor force, human capital, and capital formation in rice production. future literature requires the analysis of technology adoption, labor force, human capital, and capital formation impacts on rice production for an extended period. 9. acknowledgement *this research was supported by the ministry of higher education (mohe) of malaysia through fundamental research grant scheme (frgs/1/2019/ss08/uum/02/15). references abbas, s., & mayo, z. a. 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the impact of change management, human capital development, and the formation of business partnerships on the innovation management of the agricultural machinery industry in thailand. 2) to investigate how innovation management influences the competitive advantage of the agricultural machinery business in thailand. 3) to investigate the impact of innovation management on the competitive advantage of the agricultural machinery business in thailand. organizational performance of thailand's agricultural machinery sector 4) to investigate the impact of competitiveness on the organizational performance of thailand's agricultural machinery industry 5) examine the approach to innovation management that influences the structure of the agricultural machinery industry in thailand to develop policy suggestions and guidelines for innovation management in the agricultural machinery industry in thailand. this study employs both quantitative and qualitative research methods. the cause and productive relationship of the farm machinery business was investigated using quantitative research. a questionnaire was administered to 380 executives in the farm machinery business, and phenomenology interviews were conducted with nine executives who were principally responsible for innovation management. the statistics utilized in the hypothesis were a confirmatory factor analysis of the second-order and a structural equation model. the research is based on hypotheses. confirmatory factor analysis demonstrated that the hypothetical model corresponds well to the empirical data or that the model has a high degree of correctness. considered from the chisquare ( )115.97 statistically significant at the level of 0.10 (pvalue 0.10), chi-square ( ) is 1.18, and the comparative fit index (cfi) is 1.00. the goodness of fit index (gfi) was 0.97, and the adjusted goodness of fit index (agfi) was 0.94. the benefit of this research can explain the relationship between—the cause and effect of innovation management on the organizational performance of the agricultural machinery industry on research theory. the study's results can be used in management as a guideline for managing innovation and technological advancement. businesses need to adapt and respond to changing environments to survive stable growth and competitiveness in international markets, which leads to good results to happen to the organization in the future. key words: change management, human capital development, innovation management, organization performance, agricultural machinery industry. 1. introduction the 13th national economic and social development plan (be 2023-2027) aims to transform the production structure into an innovation-based economy by enhancing the competitiveness of the key manufacturing and service sectors. it can respond to the development of technology and modern society by linking the local economy and small-scale entrepreneurs to the value chain of the manufacturing sector (office of the national econometrics and social research center). in today's continuously changing business climate, which affects public and private organizations, companies must adapt their operating models accordingly al-haddad and kotnour (2015) to make the system more efficient. there is a reduction in personnel burden. technology will become the foundation for supporting the organization's activities to modernize the development process with social events (shim et al., 2002). one of the primary drivers of corporate growth in the country would be the sector of machinery industry operators. therefore, the adaptation guidelines of agricultural machinery operators apply to producers and distributors of agricultural machinery in the future research and development of agricultural machinery that satisfies market demand and is suitable for operation in each planting region with the increasing prevalence of modern technology. this will increase the level of current agricultural output, such as incorporating automation/artificial intelligence/internet of things/sensors(kuranchie-mensah & amponsah-tawiah, mailto:sudarat.pi@sssru.ac.th https://orcid.org/0000-0002-9532-212x agbioforum, 24(1), 2022 | 73 pimonratanakan. — the causal factors that influence the organization performance of the agricultural machinery industry 2016). due to the justifications mentioned above, the researcher acknowledges the significance of studying the causal elements that influence the organizational performance of the agricultural machinery business. this is to prepare and motivate the farm machinery industry to develop a comprehensive innovation management system. the findings of this study will be included in formulating policies and programs for innovation management inside the business. according research objectives of research 1) examine the impact of change management, human capital development, and business alliance formation on innovation management in the thai agricultural machinery industry. 2) examine the impact of innovation management on thailand's agricultural machinery industry's competitiveness. 3) examine the impact of innovation management on organizational performance in the thai farm machinery sector. 4) examine the impact of competitiveness on the performance of thailand's agricultural machinery industry association. 5) examine the innovation management guidelines that influence the structure of the agricultural machinery sector in thailand to develop policy suggestions and innovation management guidelines for the agricultural machinery industry in thailand. 2. literature review 2.1 innovation management innovation is the creation and improvement of research and development that leads to the development of commercially viable items, according to the strategic plan for innovation development devised by the organization's leaders (dereli, 2015). innovation capability is the ability to change ideas and the body of knowledge to create products, systems, and processes that continually benefit the organization and its stakeholders (lawson & samson, 2001). innovation capability includes innovationenhancing strategies, organizational behavior, working process, product and market acquisition, vision and strategy that support innovation, talent and creative management resources (zhou & li, 2010). given the importance of small and medium-sized enterprises to the thai economy, businesses can enhance their organizational performance by embracing sustainable technology. the thai government has begun to provide unique training and incentives to encourage innovation's continuous contribution (saengchai, mitprasat, & jermsittiparsert, 2019) 2.2 competitive advantage the competitiveness component, in which customer relationship management is used to handle information about individual customers and carefully manage customer touch points to build customer loyalty (kaneko & yimruan, 2017; klaprabchone, chengseng, prapho, lissani, & sangsawang, 2019; kotler & keller, 2018). to keep the business in a position of superiority over the competition, competitors must be chosen under the business's resources and level of preparedness. in addition, three variables contribute to a competitive advantage: 1) cost, which the firm has created and increased its efficiency, and 2) productivity. cost-effective operations generate competitive advantages. 2) quality is the organization's production of dependable, high-quality goods that satisfy the needs and expectations of customers. 3) delivery is the delivery of products on time, in the correct quantity, and at the correct location, leading to reliability in delivery and prompt customer reaction (chamsuk, fongsuwan, & takala, 2017). 2.3 organization performance moreover, a good organization's performance measurement system can evaluate results from two perspectives: the economy has measurements like financial ratio, profitability, market share growth, and the measure of satisfaction with the organization's stakeholders, such as customer satisfaction, employee happiness, and social and environmental performance (santos & brito, 2012) in addition, the majority of corporate organizations concentrate on promoting and growing industrial sectors for growth and sustainable development throughout the supply chain. the performance was then evaluated by comparing the organization's supply chain performance to its supply chain potential (sharma, chandna, & bhardwaj, 2017). enhancing working conditions and customer satisfaction through employee service lowers consumer discontentment, increases adaptability and mobility, and responds to consumer needs more quickly (kasim, haracic, & haracic, 2018). 2.4 change management for the management of technology to influence the success of entrepreneurs, entrepreneurs must have access to modern technology for product development (haseeb, hussain, kot, androniceanu, & jermsittiparsert, 2019). the invention is crucial to the success of a business since having superior technology and innovation will aid in gaining a competitive edge and, most importantly, the ability to produce innovations. (jasra, hunjra, rehman, azam, & khan, 2011). in response to this shift, firms are diversifying, impacting their management procedures. 2015; theodorakopoulos & budhwar in addition, the change element on diversity in establishing a culture of participation will inspire employees to be innovative and entrepreneurial (mehta & gupta, 2014). 2.5 human capital development possibility for dynamic human capital growth. the development of human capital, regarded as the core of modern corporate management, is an integral part of the thai industrial development master plan on the human capital potential. it is the utilization of wisdom to generate innovation and create additional value. (chiang & shih, 2011). therefore, the firm must consider the potential of its human resources. regarding the ability to flexibly adapt this is in response to global developments and technological advancements (craciun, 2015), as well as agbioforum, 24(1), 2022 | 74 pimonratanakan. — the causal factors that influence the organization performance of the agricultural machinery industry the dynamic capability of the organization's utilization of resources to positively impact performance and create a competitive advantage (chien & tsai, 2012). 2.6 theoretical framework building alliances in international business is by creating alliances that support the sharing of resources of multinational and international businesses by doing business internationally. this results in lower operating expenses, fewer errors, increased market intelligence martin and salomon (2003), and corporate cooperation in the technology sector. information technology support for business operations information. therefore, alliances must be formed to trade resources and information, especially with this client group, to expand the business and ensure the organization's survival (byun, sung, & park, 2018). as research hypotheses, the review of linked concepts, theories, and research can be summed up. hypothesis 1 change management has a direct positive influence on innovation management. hypothesis 2 human capital development has a direct positive influence on innovation management. hypothesis 3 building business alliances have a direct positive influence on innovation management. hypothesis 4 innovation management has a direct positive influence on competitive advantage. hypothesis 5 innovation management has a direct positive influence on organization performance. hypothesis 6 competitive advantage has a direct positive influence on organization performance. from the review of concepts, theories, documents, and related research, each variable has a relationship to create a theoretical framework of the study shows the relationship between change management, human capital development, building business alliances, innovation management, and competitive advantage and organization performance. theoretical framework figure 1: theoretical framework of the study shows the relationship between change management, human capital development, building business alliances, innovation management, competitive advantage and organization performance 3. research methodology this research employed a mixed-methods approach, combining a quantitative research method with qualitative research in a multi-phase design. the research process consists of two parts. the first step is quantitative research to examine the components and model of the causal factors affecting the organizational performance of the agricultural machinery industry in thailand, followed by qualitative research to clarify and validate the quantitative findings (chieochan, lindley, & dunn, 2000). qualitative research is a descriptive study of the thai farm machinery business. 3.1 population and sample thailand's agricultural equipment operators served as the population sample for this study. as an organizational system, there are 1,617 sites kongtip et al. (2018) (as of february 2, 2022) that are classified into units of analysis for this research. the quantitative research sample group consists of top executives in thailand's agricultural machinery industry. there were 1,617 locations in total. 10 to 20 times per 1 observed variable was the criterion for determining sample size (j. hair, black, babin, & anderson, 2010). there were 19 observation variables in this study. there were between 200 and 380 samples. 380 agbioforum, 24(1), 2022 | 75 pimonratanakan. — the causal factors that influence the organization performance of the agricultural machinery industry samples constituted the total number of samples. the sample consists of 380 top executives from thailand's agricultural machinery business (department of industrial works, 2021) selected using proportional stratified random sampling. step one is to split districts and districts based on location and use a straightforward sampling technique to cover bangkok and the surrounding provinces. 3.2 key informants in qualitative research through non-participant observation, purposive sampling, and information collected from experienced key informants, the researcher could determine the key informants, theoretical sampling, and purposive sampling because it is possible to arrive at a very accurate interpretation of it (shaw et al., 2017) by making use of indepth interviews with 9 different persons. to be eligible for consideration, candidates must be high-level executives in the agricultural machinery industry in thailand who have been honored with technology awards and excellent industry awards for agriculture and processed agriculture (best technology and industry award, 2021 and 2020, national innovation agency, 2022). additionally, candidates must be executives of diverse business sizes, with employee counts ranging from 50 to 100, 101 to 150, and more than 150. 3.3 data collection make a letter requesting permission from the agency along with informing the agency. the data collection in quantitative research is from senior executives of the agricultural machinery industry. 3.4 research tools tools used to collect data: the researcher used the test, a closed-ended question type, in which parts 1 and 2 are checklists, parts 3 5 are likert's rating scale (harpe, 2015), and part 6 are open-ended questions. 3.5 quality assurance of research instruments the following steps include the quality testing of research tools: 1) content validity testing utilizing a questionnaire designed by three experts to examine the congruence of the questions with the study conceptual framework's aims. using the formula ioc (index of item object congruence) = r/n, the corresponding index was then calculated between the query and the characteristics, based on the research objectives. to be congruent with the research aims, the correlation index between the questions must be at least 0.50 (ulewicz & nový, 2013). the range of 0.67 to 1.00 might be utilized as a question. 2) verification of reliability to verify the dependability of the tool based on an experiment (try out) with executives of the agricultural industry who are not the actual sample group of 30 individuals using the alpha coefficient analysis according to the cronbach method (cronbach, 1984). to be deemed acceptable, the confidence value of the entire questionnaire must be at least 0.70. (e. hair, halle, terry-humen, lavelle, & calkins, 2006). equal to 0.909 and based on the research tool's quality test results with a confidence check utilizing the alpha coefficient and cronbach's technique. it was determined that the confidence value of the questionnaire, divided by each factor, fell within the range of 0.823-0.929, which meets the requirements. the questionnaire can therefore be used to acquire research data. 3.6 tools in qualitative research method of qualitative research this study's material was gathered with a semi-structured interview consisting of an in-depth interview questionnaire and the study of data from secondary sources and important information providers. the researcher used a semi-structured interview as a guideline for an in-depth interview with a non-participant observation so that the research could be conducted under the research methodology and the organization's stated objectives using a phenomenological approach based on heidegger's phenomenological concept, which focuses on finding meaning by looking beyond appearances to the underlying meaning. using a semi-structured interview, the primary objective was to comprehend the significance of individuals' past life experiences (davidson, paulus, & jackson, 2016). 3.7 data collection in qualitative research make a letter requesting permission from the agency and informing the agency to schedule a date and time that will invite the informant to join a specific group discussion— recording the conversation and taking note of the informant's details, without citing the informant's name, just specifying the information from any discussion group in which order of the information providers, etc. 3.8 statistics and data analysis 1. the researcher has analyzed the data using descriptive statistics and the data obtained to analyze the statistical values consisting of frequency, percentage and standard deviation by the statistical package program and structural equation model: sem. 2. the causal factor analysis by analyzing the path analysis using the statistical package program and structural equation model: sem and considering the value χ2 /df is less than 2, the cfi index is close to 1, the rmsea index and the rmr index is less than 0.05, which is within the acceptable range which (e. hair et al., 2006). the model is therefore considered to be harmonious with the empirical data. 4. data analysis in qualitative research in this research, the phenomenological approach was used according to the concept of heidegger as a guideline for the study aimed at understanding the meaning of the phenomenon through the process of data collection, including data analysis with rigorous analysis and interpretation. there is a systematic screening thorne (2000) to study concepts, theories and research related to the phenomenon that needs to be studied in depth. to be theoretical sensitivity by building the credibility of the data by the triangulation. agbioforum, 24(1), 2022 | 76 pimonratanakan. — the causal factors that influence the organization performance of the agricultural machinery industry 5. research results quantitative research results. the opinion level of the causal factors influencing the organizational performance of the agricultural machinery industry in thailand. the overall level of opinion on various factors. in each aspect, there was a high-level average. the mean values were 4.20, 4.16, 4.15, 4.13, 4.12 and 4.07, respectively, shown in table 1. table 1. shows the mean feedback levels and the sd values of the variables variable mean sd. interpretation organization performance 4.20 0.68 high building business alliances 4.16 0.67 high innovation management 4.15 0.66 high competitive advantage 4.13 0.70 high change management 4.12 0.69 high human capital development 4.07 0.71 high the test found that the correlation coefficients of the 19 observed variables of 171 were related, and the correlation of all pairs of variables had the same direction. the correlation coefficient between the variables was positive, with a coefficient between 0.446 – 0.797 statistically significant at the 0.01 level, the correlation coefficient of variables must not exceed 0.90, which indicates that the variables studied are not too high a relationship problem multicollinearity (pallant, 2020), including testing for the independence of these variables. kmo (kaiser-meyerolkin) and bartlett's test of sphericity to determine the suitability of the variable group found that the kmo value of 0.968, which is greater than 0.8, is very suitable for the composition analysis and bartlett's test of sphericity was statistically significant (bartlett's test = 8738.490, df = 171, sig = 0.000). therefore, these variables did not have comorbidity problems and were appropriate to be analyzed for measurement and research models. e. hair et al. (2006); klaprabchone et al. (2019) are shown in table 2 as follows: table 2: correlation coefficient analysis of the causal factor structure model influencing the organizational performance of the agricultural industry in thailand. the results showed that chi-square = 115.97 was statistically significant at the 0.10 level (pvalue=0.10), the comparative fit index (cfi) was 1.00, and the goodness of fit index (gfi) was 0.97. the adjusted goodness of fit index (agfi) was 0.94, and the root mean square error of approximation (rmsea) was 0.02. all indices passed the criteria indicating that the model was harmonious with the empirical data. as shown in table 3: results of analysis of direct effects, indirect effects and total effects: it was found that the constituent variables of the causal variables and the outcomes of the causal factors influencing the organizational performance of the agricultural industry in thailand have direct influence, indirect influence and real influence divided by research hypothesis as shown in table 4. an overview of the causal factor structure model analysis influencing the organization performance of the agricultural machinery industry in thailand that has undergone correlation to be agbioforum, 24(1), 2022 | 77 pimonratanakan. — the causal factors that influence the organization performance of the agricultural machinery industry consistent from the generated model with the real data is shown in figure 2. table 3. the results of checking the conformity of the empirical model with the theoretical model. (prototype model) variable model interpretation chi-square 115.97 pass chi-square/df 1.18 pass df 98 pass p-value 0.103 pass gfi 0.97 pass cfi 1.00 pass rmsea 0.02 pass table 4: direct effects (de), indirect effects (ie), and total effects (te) cause variable result variable innovation management (icm) competitive advantage (ca) organization performance (op) de ie te de ie te de ie te chang management (cm) 0.43** 0.43** 0.40** 0.40** 0.41** 0.41** human capital development (hcd) 0.23* 0.23* 0.22** 0.22** 0.22* 0.22* building business alliances (bba) 0.31** 0.31** 0.29** 0.29** 0.29** 0.29** innovation management (icm) 0.93** 0.93** 0.66** 0.29* 0.95** competitive advantage (ca) 0.32** 0.32** **p<0.01, *p<0.05 figure 2: the analysis of the causal factor structure model influencing the organization performance of the agricultural industry chi-square=115.97, df=98, p-value=0.10387, rmsea=0.021 from figure 2 and table 4, the results of the analysis revealed that (1) change management had a direct positive influence on innovation management. it was found that change management (cm) positively influenced innovation management (icm) with a direct influence of 0.43. the total was 0.43, with a statistically significant level of 0.01. therefore, hypothesis 1 was accepted. (2) human capital development had a direct positive influence on innovation management. it was found that human capital development (hcd) positively influenced innovation management (icm) with a direct influence of 0.23. the total was 0.23 with a statistically significant level of 0.05. therefore, the second hypothesis was accepted. (3) building business alliances had a direct positive influence on innovation management. it was found that business alliances (bba) had a direct positive influence on agbioforum, 24(1), 2022 | 78 pimonratanakan. — the causal factors that influence the organization performance of the agricultural machinery industry innovation management (icm) with a direct influence of 0.31, and the real influence was 0.31, statistically significant at the 0.01 level. therefore, hypothesis 3 was accepted. (4) innovation management, it was found that innovation management (icm) had a direct positive influence on competitive advantage (ca) with a direct influence of 0.92 and a total influence of 0.93. it was statistically significant at the 0.01 level, so hypothesis 4 was accepted. (5) innovation management, it was found that innovation management (icm) had a direct positive influence on organization performance (op) with a direct influence of 0.66 and an indirect influence of 0.29, and the total influence was 0.95, with a statistically significant level of 0.01. therefore, hypothesis 5 was accepted. (6) competitive advantage, it was found that the competitive advantage (ca) had a direct positive influence on the organization's performance (op), with a direct influence value of 0.32 and an influence value of 0.32. the total was 0.32, statistically significant at a 0.01 level. therefore, hypothesis 6 was accepted. qualitative research results. the interviews with the 9 key informants found that the opinions were the same in content. that the executives of the organization understand and have a way to change according to the work environment quickly and will make personnel ready to support the changes are keen to develop human resources in the organization to have skills, knowledge and competence in the direction of organizational change by accelerating the organization to accelerate the change by focusing on building the organization's innovation management capabilities. in addition, the organization has invested in the adoption of digital technology. navigating the application used in customer service to make customers more convenient creates competitiveness and develops and encourages personnel to innovate and create innovations. 5.1 new explicit knowledge figure 3. new explicit knowledge model, innovation management approach of the domestic agricultural machinery industry from figure 3, a new form of knowledge and an innovative management approach for the agricultural machinery industry found that change management human capital development builds business alliances. it is an agbioforum, 24(1), 2022 | 79 pimonratanakan. — the causal factors that influence the organization performance of the agricultural machinery industry important factor in the organization's transformation towards corporate innovation management can create competitiveness and lead to good corporate performance there are guidelines and developments to promote development in various fields as follows: 1) change management by promoting, developing and pushing for improvement of work efficiency plans creating a flat structure preparation of technology development plans for both short-term and long-term plans 2) human capital development by focusing on promoting, developing and driving personnel to develop appropriate human capital and to accommodate changes in a dynamic manner training on how to use technology to create and develop systems for employees and make an action plan and a control plan including focusing on organizational development 3) building business alliances by bringing new knowledge and new creativity to share and exchange knowledge to increase potential and new knowledge is gathered into a central database system to act as a center for exchanging information, knowledge and opinions including creating creative business alliances 4) innovation management by using technology as a tool to create added value, create productivity using new online marketing communications and applications development of online media including the ability to innovate creatively. 5) competitive advantage by defining strategies and actions to build relationships, create conversations in the online world to solve customer problems and formulating strategies for creating interactions with customers creates an emphasis on integrating needs. 6) organization performance by determining short-term and long-term financial impressions. there is a set of impressions in the field of expanding a new customer base, including internal processes' performance. therefore, guidelines and development and promotion by giving importance to innovation management. there is an awakening to change in production to increase capacity and ability to adapt to various situations. in creating positive traits, there are constructive traits, understanding each other's strengths and promoting cooperation to be unified for the organization's sustainable performance. 6. discussion and conclusion change management has a direct, positive effect on innovation management that is statistically significant at the 0.01% level, confirming hypothesis 1 due to the competitive business climate. this permits the agricultural machinery business to adapt and accommodate structural flexibility-related shifts. adjustments must be made to the organizational structure's adaptability to enhance work plans, boost productivity, and decrease delays. the focus of executives is management. if the organization can effectively manage change, concentrate on fostering a culture of engagement. consequently, the organization will also be able to manage innovation. the findings are congruent with the findings of damanpour and schneider (2006) study, which demonstrated that for organizational innovation to be successful, an effective organizational transformation process is vital to the organization's long-term growth. moreover, this is congruent with the findings of kennedy (2018), which indicate that managers must use innovation management to produce new goods or processes. human capital growth has a direct, beneficial effect on innovation management. it was statistically significant at the 0.05 level, so accepting the second hypothesis, the current scenario shift is a dynamic transition that brings change for sustainable survival and an increasing emphasis on individual human resources' knowledge, skills, and abilities. the uniqueness of the individual was utilized in the organization's growth, resulting in all parties having positive interactions with one another and contributing to the formation of good collaboration; this comprehension will aid the organization in being inventive. these findings are similar to al-romeedy (2019) study, which demonstrates that applying technology in human resource management results in increased productivity-increasing people's productivity by encouraging training to develop the new knowledge and skills essential to execute the work according to the position and duties required to perform one's tasks and to be able to perform replacement work in other positions. building business connections positively affects innovation management at a level of 0.01, which is statistically significant; hypothesis 3 is accepted. management should be adaptable in coordinating the business's resources by cooperating to develop and improve our production processes to maximize efficiency and minimize waste. additionally, it introduces new knowledge and encourages sharing of new creative ideas to boost job potential. in addition, fresh creative ideas are compiled in a central database system for full information access between enterprises or partners. the findings are consistent with a study by jeongeun, tae-eung, and hyunwoo (2018), which demonstrated that equipment and technology systems must be related to cooperation in the work of the organization in the field of information technology for that organization providing information technology support in that organization. therefore, having partners to exchange resources and expertise about different consumer groups is essential for the business's expansion and the organization's sustainability. innovation management has a positive, direct effect on the competitive advantage that is statistically significant at the 0.01 level, thus accepting hypothesis 4. in a highly competitive study, industry managers must rapidly change their working patterns and methods. the results are congruent with sirmon, hitt, arregle, and campbell (2010) research. management must determine how to establish the direction of their firm, how to alter their operating model and identify their selling features and strengths. value loyal customers using technology strengthens the ability to compete and improve customer service, particularly for current consumers. innovation management has a direct positive influence on agbioforum, 24(1), 2022 | 80 pimonratanakan. — the causal factors that influence the organization performance of the agricultural machinery industry organization performance with statistical significance at the 0.01 level. hypothesis 5 is accepted because entrepreneurs and business owners have applied technology and innovation by implementing digital data management for forecasting and planning. due to the difference's singularity, it utilizes process expertise to make the industry competitive and generate sustainable performance with creative packaging. this will allow the firm to build competitive advantages, resulting in improved and more sustainable performance. according to a study by shu, zhou, xiao, and gao (2016), organizational innovation as a crucial process for driving success and boosting organizational competitiveness can be applied to performance optimization. competitive advantage has a positive, direct effect on organization performance that is statistically significant at the 0.01 level; hence, hypothesis 6 is supported, as executives collaborate to build competitiveness. a competitive advantage plan must be adapted to changing circumstances to place a corporation in a position of superiority over its rivals. it adds value to products and services to set them apart from the competition. according to a study by chamsuk et al. (2017), competitive advantages consist of three factors: 1) cost: the organization has created and increased its efficiency, creating competitive advantages through operations with lower costs. 2) quality is the organization that manufactures dependable, high-quality products that satisfy the needs and desires of customers. 3) delivery is the timely delivery of products. quantity and location are accurate, resulting in delivery dependability, including prompt customer service. this results in expanding the organization's operations (chamsuk et al., 2017). 7. research recommendations 7.1 policy benefits the government has the policy to accelerate and support the innovation development of the agricultural machinery industry by linking with the private industry as well as various benefits to support and promote the work of the private sector. this will enable the development of innovations that truly meet the needs of the private sector. 7.2 suggestions for the next research this research has an analytical unit at the organizational level. in subsequent studies, further studies should be conducted at the individual level, including the results of innovation management from the perspective of employees. in addition, a multi-level model should be studied to see the elements of innovation management at many levels. and in future research may apply the conceptual framework of this research to study a group of clearly separated control variables. therefore, in the future, the results of this research should be used in other business studies or industries to compare and confirm study results. other variables should be studied that are factors that cause innovative behavior in work, such as creative leadership and innovative behavior leap. references al-haddad, s., & kotnour, t. 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(2010). how strategic orientations influence the building of dynamic capability in emerging economies. journal of business research, 63(3), 224-231. doi:https://doi.org/10.1016/j.jbusres.2009.03.003 https://doi.org/10.1016/s0167-9236(01)00139-7 https://doi.org/10.1007/s10551-014-2401-7 https://doi.org/10.1002/smj.893 https://doi.org/10.1136/ebn.3.3.68 https://doi.org/10.30657/pea.2013.01.12 https://doi.org/10.1016/j.jbusres.2009.03.003 agbioforum, 23(1): 22-31. ©2021 agbioforum the role of agricultural financing and development on sustainability: evidence from asean countries phuoc huu vo academy of politics region ii ho chi minh city, vietnam email: huuphuocktpt@yahoo.com; phuocvh@hcma2.edu.vn https://orcid.org//0000-0001-5386-2956 thanh quang ngo* school of government, university of economics ho chi minh city ho chi minh city, vietnam email: thanhnq@ueh.edu.vn https://orcid.org/0000-0001-8357-1957 * corresponding author the introduction of sustainable development goals (sdgs) provides a blueprint for sustainable growth which has received widespread attention from policymakers, industry players and academics globally. the objective of this paper is to examine the role of agricultural finance, progress in agriculture and rural development on the sustainable development of asean countries. the relevant data covering a period of 11 years (2009 to 2020) is sourced from world development indicators (wdi) and global sustainable development reports (gsdr). the results obtained from the traditional approach of fixed-effect model (fem) indicate that agricultural finance, agricultural progress, and rural development have a significant and positive impact on the sustainable development of asean countries. more specifically, the findings indicate that agricultural finance, progress in agriculture and rural development drive sustainable growth. these findings have several implications, especially for policymakers responsible for regulating these sectors. for instance, the relevant regulatory authorities should devise policies that can provide good incentives for the agricultural, rural and sustainable development. key words: agricultural finance, agricultural development, rural development, sustainable development, asean countries. 1. introduction a key indicator to assess a country’s standing against other countries is its level of economic development. once a certain level of economic development is achieved, there is need for a strong mechanism to maintain it through sustainable development means. sustainable development is a way of achieving development where growth is achieved without compromising the capacity of future generations to fulfil their own needs. in the words of silvestre et al. (2019), sustainable economic development is a way of achieving economic development that fulfils the needs of all without leaving the upcoming generations with fewer natural resources than the resources we have today. sustainability in the development of a country can be achieved when economic activities run smoothly without any hurdle or loss, and it is made possible when the commercial entities not only focus on profitability but also on environmental protection and social well-being of the public. high profitability meets the present requirement of high economic growth while the environmental protection and social well-being of the general people ensures the same economic growth in future as there is today (baloch et al., 2021; fatimah et al., 2020). sustainable development of a country is the consistency in the country's economic development which is possible only when there is a guarantee that the people of the country (who play the role of producers, suppliers, customers, and workers) will be healthy & energetic, and there are ample resources (raw material and technology etc.) to be used in generating the economic activities. for attaining this level of sustainability in the economic development of the country, agriculture and rural development of a country play an important role as they not only make direct contribution to the gross domestic product but also protect the environment against pollution and preserve natural resources for the future generation so that they can perform functional activities without any hurdle (chien et al., 2021; di marco et al., 2020). for this reason, there is a need to check the role of agriculture and rural development in ensuring sustainable economic development of the country. the present study intends to solve this problem of determining agriculture and rural development's contribution to achieving sustainable economic development. the aim of this study is to determine the impact of agriculture financing, development in agriculture, and rural development on the level of sustainable economic development of a country. the study intends to explore the role of agricultural financing, progress in agriculture and rural development in achieving sustainable development for asean economies. asean economies are one of the fastestgrowing economies in the world. in 2021, the expected gross domestic product (gdp) according to purchasing par parity is $8.993 trillion, while nominal gdp is $3.356 trillion. the economic growth rate is 4.6% in 2019, while it was 4.8% in 2020. the increasing level of gdp growth in asean countries is illustrated in figure 1. the asean economies predominantly depend on three main sectors: agriculture, service, and the industrial sector (liu et al., 2017; shair et al., 2021). although the growth rate of asean economies is high, the industrial sector releases 1.5 billion tons of co2 to the atmosphere every year, which makes asean a larger source of greenhouse gas emission than japan (1.3 billion tons per year) or germany (796 million tons per year). mailto:huuphuocktpt@yahoo.com mailto:phuocvh@hcma2.edu.vn https://orcid.org/0000-0001-5386-2956 mailto:thanhnq@ueh.edu.vn https://orcid.org/0000-0001-8357-1957 agbioforum, 23(1), 2021 | 23 huu vo, ngo — the role of agricultural financing and development on sustainability: evidence from asean countries … figure 1: real gdp growth of asean economies the increasing amount of co2 emission into the air pose a serious threat to the economic growth of asean countries if it is not controlled or regulated in the future. several suitable steps are needed to control the level of co2 emission and increase the quality based natural resources and healthy labor force for economic use so that countries achieve sustainable development. as agriculture is the only economic sector that not only adds to gdp but can also protect the environment against greenhouse gases and preserve the natural resources to meet future needs, investment in this sector and its development can assure sustainable development for asean economies. similarly, a major portion of the population in asean countries is based in rural areas, the rural community is a key source of natural sources. therefore, rural development can ensure sustainable development (samerwong et al., 2017). thus, our study, which focuses on agriculture financing, development in agriculture, and rural development, is a guideline for asean economies or similar countries to attain sustainable economic development. this study investigates into the role of agriculture financing, developments in agriculture as well as the rural sector in achieving sustainable development growth. this study throws light on the essential aspects of agriculture financing, development in agriculture and the rural development while examining the sustainable mode of achieving economic growth. even though the nexus between agriculture financing, development in the agriculture and the rural sector has been explored in existing literature, there is a need to report findings that elaborate on the impact of agriculture financing, developments in the agriculture sector, and rural development on the sustainable development of a country. given the pandemic situation across the globe and its longlasting impact on macroeconomic variables, especially the employment rate, it is important to probe into this issue. moreover, the extant literature is silent on the link between the focal variables and sustainable economic growth, and therefore it is imperative to find if there is a significant relationship amongst the variable’s understudies. the closest and most relevant literature to this paper is the work of verma et al. (2019). in their paper, they focus on agricultural development and demonstrate a need for exploration of rural economic development for getting sustainable economic growth in a country. the second section is the literature review which explains the views of past authors on the association between agriculture financing, the development of agriculture, rural development, and sustainable economic development. the third section of the paper deal with the data and methodology, explaining how pertinent data is generated, collected, and analyzed. furthermore, this section also provides a brief overview of the employed methodology. moreover, in the fourth section, the results of the study are presented and discussed. it also provides implications of the current research. finally, the study concludes with the conclusion section which also highlights the limitations of this research and the directions for future research. 2. literature review to achieve higher economic growth rate and assume a position of significance in the global or the international market, a country needs to carefully devise policies that can not only steer the country’s progress in the right direction but also ensure that this progress is achieved through sustainable means. in other words, a country needs to work on the best sustainable approaches to help bring the country to a higher level of growth. sustainability in the economic development is only possible when the environmental quality is good enough to provide skilled and energetic labor-force for future activities and when agbioforum, 23(1), 2021 | 24 huu vo, ngo — the role of agricultural financing and development on sustainability: evidence from asean countries … resources (raw material, energy resource, resources used in operations, technology, and tools) are enough to meet the future economic needs in addition to the present ones. the financing and development in different economic sectors and regions affect the sustainability component of economic development in a disproportionate way (matinaro et al., 2019). the focus of this study is on the role of agriculture financing, the development of agriculture, and rural development in driving sustainable economic growth. past authors have presented several views about the impacts of agriculture financing, the development of agriculture, and rural development on sustainable economic development, in several studies. taking cue from the existing literature on the subject and the identified gaps therein, the objective of this paper is to explain the association between agriculture financing, the development of agriculture, and rural sector and the sustainable economic development. in their recent work, adegbite et al. (2020) describe the importance of agricultural finance in achieving the sustainable economic development of a country. they define agricultural finance as the provision of funds for operating or facilitating agriculture-related activities. financial institutions like banks have the policy to provide funds to farmers on easy conditions and through an easy process, so that they can expand the scope of agriculture by acquiring land or building, purchasing technology or resources to facilitate the preparation of the land for production, and marketing of crops, plants, and livestock and related products. as a result of agricultural financing, even a little resource can be used to achieve several outcomes in a way that resources can be saved, natural resources can be increased, and the health of the workers and the environment can be protected. more precisely, agriculture financing can help individual economies to achieve several objectives with only limited input resources. all these activities are expected to boost the economic growth of a country. more importantly, it also enables the future generation to follow a similar path and remain on the sustainable growth path. a recent work of paramati et al. (2018) examines the role of financial institutions like banks in developing the agriculture sector and consequently, achieving sustainable economic development in a country. in countries where the farmers have the facility of easy loans from financial institutions such as banks, they can utilize these funds for acquiring the latest machinery, tools, quality seeds, pesticides, fertilizers, and the adoption of modern techniques of sowing, watering, cultivating, and harvesting the crops, plants, or trees. modern technologies and processes create agility and accuracy in agriculture activities such that the farmers can increase the productivity and hence some of these produces can be stored for future use. the consistent growth in the agriculture aided by the easy agriculture finance leads to sustainable economic development. along the same lines, antwi-agyei et al. (2018) argues that when farmers have enough funds through ease mode of agriculture financing, they are in a right position to pay heed towards the control of co2 emission in the air by motivating and incentivizing the rise in the renewable energy resources. for instance, easy access to agricultural financing will ultimately boost the plantation of more crops or trees and hence help in absorbing carbon dioxide from the air. thus, the environment and nature can be protected, which not only meet the present needs of business organizations but also enable them to carry on business activities in future. thus, agricultural financing leads to sustainable economic development. the study by yamaguchi et al. (2017) also implies that in countries where financial institutions are willing to provide finance to farmers on low interest rates and easy conditions, there is more sustainable economic development as it ensures the availability of the consistent availability of good quality natural resources to be used and energetic human resources to be applied in economic activities. agricultural development refers to the provision of assistance to crop producers with the help of different agricultural resources. according to the study of pan et al. (2021), which seeks to evaluate agricultural development as an indicator of sustainable economic development, argue that agricultural development is the process that creates necessary prerequisites for the accomplishment of full potential of agriculture sector. these conditions include the acquisition of exact knowledge, acquisition of technology and resources as well as the allocation of inputs and outputs. this study elaborates how improvements in the quality of technology and resources to be used in the preparation of land for cultivation, sowing seeds, watering the crops, harvesting, or growing livestock enhances the growth of production and their quality as well. the increased production provides resources to the manufacturing organizations for present use and assures the in-time availability of agriculture associated resources or raw materials for industries. thus, it ensures sustainability in the economic development process. more recently, adegbite et al. (2020) investigate into the role of agriculture sector in bringing sustainability into the economic growth process of a country. as per their findings reported in the study, the willingness of the farmers or peasants to have knowledge about the change in the technology, techniques, and resources like fertilizers, seeds, or feed for livestock enables them to bring improvement in the speeds and quality of production of crops and livestock. it reduces the amount of waste and yields better production. the reduction in wastes and increased plantation protect the earth’s climate and the quality of natural resources, which in turn, guarantees consistent economic development and sustainable position of the economy in the international market. matthew et al. (2019) is of the view that the struggle of farmers to bring improvement in the preparation of land for cultivation, manure processing, and watering the crops or plants protects the environment as the plants can absorb the co2 emissions from the air. in countries where the environment agbioforum, 23(1), 2021 | 25 huu vo, ngo — the role of agricultural financing and development on sustainability: evidence from asean countries … is clean, the economic activities are carried out smoothly in the presence of healthy livestock resources and healthy human resources who can actively perform their assigned functions. thus, a high level of agricultural development leads to the sustainable economic development in a country. similarly, the study by mugambiwa et al. (2017) tests the impacts of agricultural development on the economic growth of the country. their findings reveal that when farmers can import better technology or other resources for utilization in agriculture activities, the production of crops, livestock, and the related products remains high and the share of agriculture in the gross domestic product is also highly sustainable. in the words of tomashuk (2017), rural development is the way of improving the quality of life and the economic well-being of people living in rural areas, often relatively isolated and sparsely populated areas. rural development comprises of many sorts of improvement and facilities in rural areas such as education, hospitals, social structure, gas or electricity access, information technology, communication network, transportation, development in the rural economy like agriculture, forestry, tourism, and rural industries. any sort of rural development leads to high sustainable economic growth of the country. the scholarly work of scown et al. (2020), explores the factors affecting sustainability in the country’s economic development. their findings suggest that the provision of gas and electricity access has made both the social & economic life of rural people easy. it is the availability of electricity and transportation which promote agriculture, tourism, and rural industries. this leads to an increase in the gross domestic product, and the stable performance of agriculture, tourism, and rural industries brings sustainability to the development of the country. in a developed rural area, education and medical facilities are available. according to the views of shapovalov et al. (2019), the provision of education and the medical facilities to the rural population ensures the presence of a skilled, talented, competent, and healthy workforce that can carry out or perform the assigned economic activities in an efficient manner. the existence of such a proficient labor force proves to be an asset for business organizations and enables them to carry business activities smoothly and participate in the process of ensuring sustainability in the economic development process of a country. the study of hissa et al. (2019) is conducted with an aim to explore the role of rural development in attaining sustainable economic development in a country. this study analyzes the four indicators of rural development such as rural transportation, electricity access, and communication network and education facilities. the study concludes that all four indicators like transportation, electricity access, communication network and the provision of education facilities contributes to the economic development of rural areas and thus, brings sustainability in the economic growth of a country. however, they further argue that transportation, electricity access, communication network, and education facilities contribute to the economic development of a country in a disproportionate way. along the same lines, the study of haider et al. (2018) shows that the provision of banking facilities in rural areas improves the social life and the economic well-being of people living in the rural areas. the banks in rural areas provide funds to the people living there to help them carry out economic activities like agriculture, tourism, forestry, and the rural industry. the production of goods and services through these economic activities in rural areas contributes significantly to the gross domestic product and ensures sustainable economic development. 3. data and methodology this research investigates into the impact of agricultural finance, agricultural and rural development on the sustainable development of asean countries. this study has employed the post-financial crisis data from 2009 to 2020. the secondary data used in is study has been extracted and compiled from the world development indicators (wdi) and the global sustainable development report (gsdr) 2021. based on the extant literature, this study has used the following equation to test the link between the focal variables. the hypothesis can be written down in an equation form as follows: 𝑆𝐷𝐼𝑖𝑡 = 𝛼0 + 𝛽1𝐴𝐹𝑖𝑡 + 𝛽2𝐴𝑉𝐴𝐺𝑖𝑡 + 𝛽3𝐴𝑅𝑀𝐼𝑖𝑡 + 𝛽4𝑅𝑃𝐺𝑖𝑡 + 𝛽5𝐸𝐴𝑅𝐴𝑖𝑡 + 𝑒𝑖𝑡 (1) where; sdi = sustainable development index i = country t = time period af = agricultural financing ava = agricultural value added in growth armi = agricultural raw material import rpg = rural population growth eara = electricity access in rural areas this research has adopted sustainable development as the predictive variable and measured it based on the global sustainable development index 2021. in addition, agricultural finance, agricultural development, and rural development have been taken as the independent variables. agricultural finance has been measured as the ratio of agricultural loans to total loans. in contrast, agricultural development has been measured as the agricultural valueadded (annual % of growth) and agricultural raw material import (% of total merchandise import). finally, rural development has been measured as the rural population growth (annual %) and access to electricity rural (% of rural population). the information pertaining to the selected variables is provided in table 1. agbioforum, 23(1), 2021 | 26 huu vo, ngo — the role of agricultural financing and development on sustainability: evidence from asean countries … table 1: measurements of variables s# variables measurements 01 sustainable development global sustainable development index 2021 02 agricultural financing agricultural loans to total loans 03 agricultural value added in growth agricultural value added (annual % of growth) 04 agricultural raw material import agricultural raw material import (% of total merchandise import) 05 rural population growth rural population growth (annual %) 06 electricity access in rural areas access to electricity, rural (% of rural population) the key descriptive statistics such as means, maximum and minimum values and the standard deviations are provided in table 2. in addition, this study has also examined the correlation matrix to examine the nexus among the variables. the correlation matrix is provided in table 3. moreover, the present research has also investigated the variance inflation factor (vif) to check the multicollinearity among the variables (refer to table 4). the estimation equations for vif are mentioned below: r2 y 𝑌𝑖𝑡 = 𝛼0 + 𝛽2𝑋2𝑖𝑡 + 𝛽3𝑋3𝑖𝑡 + 𝛽4𝑋4𝑖𝑡 + 𝛽5𝑋5𝑖𝑡 + 𝑒𝑖𝑡 (2) 𝑗 = 𝑅𝑌 2, 𝑅𝑋1 2 , 𝑅𝑋2, 2 𝑅𝑋3, 2 𝑅𝑋4, 2 𝑅𝑋5 2 (3) 𝑇𝑜𝑙𝑒𝑟𝑎𝑛𝑐𝑒 = 1 − 𝑅𝑗 2 𝑉𝐼𝐹 = 1 𝑇𝑜𝑙𝑒𝑟𝑎𝑛𝑐𝑒 (4) this study also ran the hausman test to check the appropriate estimation model to evaluate the link between the variables. the hausman test is conducted to choose between the fixed effect model (fem) and the random effect model (rem). the deciding factor between the two models is based on the probability values (p values). for instance, if the probability value is less than 0.05, this would imply that the rem is more appropriate and vice versa. as per the hausman test, fem has been selected for modelling the equation. the estimation equation for the fem model can be written down as follows: 𝑌𝑖𝑡 = 𝛽1𝑖 + 𝛽2𝑋2𝑖𝑡 + 𝛽3𝑋3𝑖𝑡 + 𝛽4𝑋4𝑖𝑡 + 𝛽5𝑋5𝑖𝑡 + 𝑢𝑖𝑡 (5) in the above equation, subscript (i) and (t) represents the sample country at time ‘t’. this study has established the fem equation by using following model and the variables mentioned in table 1: 𝑆𝐷𝐼𝑖𝑡 = 𝛽1𝑖 + 𝛽2𝐴𝐹𝑖𝑡 + 𝛽3𝐴𝑉𝐴𝐺𝑖𝑡 + 𝛽4𝐴𝑅𝑀𝐼𝑖𝑡 + 𝛽5𝑅𝑃𝐺𝑖𝑡 + 𝛽6𝐸𝐴𝑅𝐴𝑖𝑡 + 𝑢𝑖𝑡 (6) finally, this research has also used the robust standard error to correct the downward bias associated with the errors. moreover, it also adjusts the model's heterogeneity issues that generally exist in a panel data-set. in addition, the present study has established the robust standard error equation with the help of below constructs mentioned as following: 𝑆𝐷𝐼𝑖𝑡 = 𝛽1𝐴𝐹𝑖𝑡 + 𝛽2𝐴𝑉𝐴𝐺𝑖𝑡 + 𝛽3𝐴𝑅𝑀𝐼𝑖𝑡 + 𝛽4𝑅𝑃𝐺𝑖𝑡 + 𝛽5𝐸𝐴𝑅𝐴𝑖𝑡 + ɛ𝑖𝑡 (7) 4. findings and discussions the key descriptive statistics such as means, maximum and minimum values and the standard deviations are provided below. the below results show that the average value of sdi is 1.641 while the average value of af is 0.569. in addition, the mean value of avag is 8.759, and the mean value of armi is 0.187. finally, the rpg average value is 13.405, and eara average value is 5.568. table 2 shows these values given below: table 2: descriptive statistics variable obs mean std. dev. min max sdi 120 1.641 0.559 0.179 2.636 af 120 0.569 0.158 0.545 0.627 avag 120 8.759 0.513 7.808 9.986 armi 120 0.187 0.247 0.012 0.799 rpg 120 13.405 20.885 4.38 65.89 eara 120 5.568 0.410 4.099 6.399 as mentioned above, this study also examines the correlation matrix to examine the nexus amongst the employed variables. the results shown below indicate that all the predictors such as af, avag, armi, rpg and eara are positively associated with the sdi. table 3 below shows the correlation matrix. agbioforum, 23(1), 2021 | 27 huu vo, ngo — the role of agricultural financing and development on sustainability: evidence from asean countries … table 3 matrix of correlations variables sdi af avag armi rpg eara sdi 1.000 af 0.418 1.000 avag 0.409 -0.045 1.000 armi 0.084 -0.005 -0.546 1.000 rpg 0.659 0.214 -0.223 0.142 1.000 eara 0.118 -0.131 -0.143 -0.228 0.096 1.000 the present research also investigated the vif to check the multicollinearity amongst the variables. the results presented below indicate that the vif values are less than five. these values imply that there are no issues of multicollinearity amongst the constructs. table 4 below shows the vif results. table 4: variance inflation factor vif 1/vif armi 1.674 0.597 avag 1.638 0.611 eara 1.233 0.811 rpg 1.118 0.895 af 1.087 0.920 mean vif 1.350 . as mentioned above, this study also executes the hausman test to check the appropriate estimation model in order to evaluate the link between the variables understudies. the results presented below show that the p-value to be 0.372. based on the rule of p-value of more than 0.05, fem is selected to conduct the regression analysis. table 5 shows the hausman test results. table 5: hausman (1978) specification test coef. chi-square test value 5.376 p-value 0.372 based on the hausman test, fem is selected to analyze the relationship amongst the variables. the results presented below indicate that agricultural finance, agricultural development, and rural development have a significant and positive impact on the sustainable development of asean countries. table 6 below shows the fem results. table 6: fixed effect model sdi beta s.d. t-value p-value l.l. u.l. sig af 0.595 0.261 2.28 0.024 0.078 1.112 ** avag 0.509 0.124 4.10 0.000 0.755 1.263 *** armi 0.749 0.223 3.36 0.001 1.191 3.307 *** rpg 0.013 0.002 6.89 0.000 0.010 0.017 *** eara 0.016 0.122 0.13 0.895 -0.226 0.259 constant 5.274 1.191 4.43 0.000 2.912 7.636 *** r-squared 0.378 number of obs 120 f-test 12.782 prob > f 0.000 *** p<.01, ** p<.05, * p<.1 finally, the robust standard error is also used to check the nexus amongst the variables and the results are like the one presented in table 6. more precisely, agricultural finance, agricultural development, and rural development have a significant and positive impact on the sustainable development of asean countries. table 7 below shows the estimation result of robust standard errors: the analysis results presented in this paper indicate that agricultural financing has a significant positive association with the sustainable development of a country. the study implies that as agriculture is a major economic sector, the source of raw material & energy resources for other economic sectors, and a way to maintain environmental quality, financing in agriculture can lead to the sustainable development of a country. agbioforum, 23(1), 2021 | 28 huu vo, ngo — the role of agricultural financing and development on sustainability: evidence from asean countries … table 7: robust standard error sdi beta s.d. t p>t l.l. u.l. af 1.004 0.258 3.890 0.004 0.421 1.586 avag 0.420 0.052 8.070 0.000 0.538 1.302 armi 0.455 0.196 2.320 0.045 0.898 1.012 rpg 0.014 0.001 9.920 0.000 0.011 0.018 eara 0.003 0.118 0.030 0.978 -0.264 0.271 _cons 4.018 1.088 3.690 0.005 1.557 6.479 these results are in line with the past study of van zanten et al. (2021) who analyze the role of financial institutions in agricultural development and the overall sustainable development of a country. the study suggests that when financial institutions provide loans to farmers on easy conditions for agriculture, the quality of the environment, natural resources, and the health of living beings can be protected by controlling the amount of co2 emission into the air through the increased plantation, forestry, and production of renewable energy resources. thus, agricultural financing not only assists the present generation in ensuring development but also enables future generations to achieve the same level of economic development by ensuring the availability of sufficient resources, a good working environment, and sound health. these results are also in line with the past study of thornton et al. (2018). the authors study the impact of agriculture financing on the economic development of individual countries. the study shows that agriculture financing on easy conditions makes it possible to make an investment in forestry, plantation, crops, or livestock nourishment which are the main source of raw material, food, and energy resources. thus, agriculture financing replenishes the natural resources and keeps them safe for future use and improves the sustainability level in the economic development of a country. these results are line with the previous study of stafford-smith et al. (2017). as per their findings, agriculture financing puts the agriculture sector on the innovation track by enabling the farmers to benefit from advanced agriculture techniques, advanced technology, seeds, and the fertilizers needed to plant forests, grow crops, and look after the livestock. the use of modern ways of plantation and livestock enable farmers to produce enough not only to meet the needs of the present generation but also prepares them to leave ample resources for future generations. it has also been indicated by the results that agricultural development has a significant positive association with sustainable economic development. these results are also in line with the previous study of bastan et al. (2018). the main aim of the work of bastan et al. (2018) was to test the role of agriculture development in achieving sustainable economic growth. the acquisition and the application of latest resources, technology and techniques for the production, processing, and marketing of crops and livestock, assist in the production of crops, forests, and livestock. the increased trees, crops, livestock, and related products provide raw materials to all other economic sectors which are operating their activities and ensure the availability of resources for future use. thus, the improvement in the level of agriculture development leads to more sustainable economic development in a country. these results are also in line with the previous study of streimikis et al. (2020), which suggests that improvement in the preparation of land, manure processing, the processes of crops production, and livestock nourishing enhances the plants and crops which can absorb the increased amount of polluting gases into the air and save the atmosphere for the upcoming generations. this will ensure that there are smooth economic activities in the presence of a healthy labor force and the quality resources. additionally, it has also been revealed by the results that rural development has a positive link with the sustainable development of a country. these results are further substantiated by the previous work of ashraf et al. (2021). their focus is on the factors contributing to the sustainable development of a country. this study concludes that rural development like the facility of electricity, construction of educational and medical institutions, banking facilities, and the transportation facilities in the rural areas of a country, accelerate the economic growth in more sustainable way. these results are also in line with the scholarly work of fernández martínez et al. (2020). they argue that an improvement in the social and the economic activities (agriculture, mining, and the tourism) of inhabitants of rural areas through the provision of gas and electricity access, banking, education, and transportation facilities, increases the number of natural resources, protects the environment from pollution, and contributes a significant share to the gross domestic product of a country. hence, the rural development of a country determines the level of sustainability achieved within the economic development process of a country. the study carries both theoretical and the empirical implications. from a theoretical point of view, the current study has great significance as the objectives of this study make a significant contribution to the existing literature on sustainable economic development. this study explores the role of agriculture financing, development in the agriculture sector, and rural development in the achievement of sustainable development of a country. this study investigates all the essential aspects of agriculture financing, development in the agriculture sector, and the progress in rural life while examining the level of sustainable development (social, environmental, and economic development) of a country. there are numerous agbioforum, 23(1), 2021 | 29 huu vo, ngo — the role of agricultural financing and development on sustainability: evidence from asean countries … studies that have investigated the contributions of agriculture financing, development in the agriculture sector of the economy, and the rural development in the achievement of sustainable country development by enhancing or securing natural resources or progress opportunities for future generations. nevertheless, the contributing role of agriculture finance, agriculture development and rural development has scarcely been used in the same research. for instance, laurett et al. (2021) has discussed only agriculture financing and castro-arce et al. (2020), has explored only the aspect of rural development as ways to enhance the level of sustainability of economic development of a country. this research is a significant extension to the literature on sustainable development with the exploration of agriculture financing, development in agriculture, and rural growth as indicators of sustainable development of the country at the same time. the study has empirical implications as well. it is of great importance to the asean economies or other emerging economies, as it provides a guideline to the economists and the government on how they can ensure sustainability in the country’s development. the study suggests that sustainable economic development can be achieved when financial institutions provider large agriculture financing, ensuring that development is in the agriculture sector, and rural development becomes high. 5. conclusion and limitations the extant literature on sustainable economic development has a significant gap and hence there is an urgent need for specific research that fills that gap. for instance, there is a need of robust investigation aimed at assessing the factors required to achieve sustainable economic growth. the current study is conducted with an aim to gauge the impact of agriculture financing, development in the agriculture sector, and rural development on a country’s sustainable development (social, environmental, and economic development) policies. the in-depth analysis of the environmental situation, social life, and economic growth of asean countries is analyzed in this study. the study examines the policies of financial institutions regarding providing finance to the agriculture sector in particular the farmers who tend to acquire and utilize the agriculture loans, the development in the agriculture of the country, and development in the rural areas covering all possible aspects while analyzing the sustainable development of asean countries. this in-depth analysis makes it possible for the author to extract findings of the nature of the relationship between agriculture financing, development in the agriculture sector, and rural development and the country’s progress in terms of sustainable development. the findings indicate that enhanced agriculture financing improves the financial position of the farmers and enables them to promote agriculture (plants, forests, crops, and livestock) and keeps the environment safe from pollution, which provides an impetus for sustainable development in a country. the study also elaborates that a high level of agriculture development leads to a high level of sustainable development in a country. through sustainable agriculture development, the number of natural resources and the quality of the natural environment can be maintained. thus, the future population will be in the position to make the same progress as the current one is making. moreover, the study findings also show that rural development in the form of increased social and economic facilities in rural areas leads to increased resources and opportunities for both, the present and future generations. thus, increased rural development brings sustainable country’s economic development. though the study carries both theoretical and empirical implications and has contributed to existing literature in several ways. however, the study still has several limitations. the current study has analyzed only three factors i.e., agriculture financing, development in the agriculture sector, and rural development to determine the level of sustainable development of the country and hence, additional factors can be included to assess the nexus in a more comprehensive manner. moreover, although this study has given a detailed description of the role of agriculture financing, development in the agriculture sector, and rural development in the achievement of sustainable development, the significant indicators of sustainable economic development like monetary or fiscal policies, environmental regulations, and national or international trade have not been taken under consideration. similarly, as the economies are based on three sectors like agriculture, industry, and service, and all the three sectors have an equal impact on sustainable economic development, this study has only investigated agricultural development while the importance of the other two remaining sectors has been downplayed. thus, the scope of this study is limited by design and hence future research works should explore other important factors which can affect the sustainable economic development in a country. moreover, the research is limited to asean countries only. the economic union of asean comprises of 10 countries only and hence the scope and level of generalizability of this study is limited. in other words, the validity of this study may not hold in other countries or regions and hence lacks generalizability. therefore, future researchers are urged to 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https://doi.org/10.1177%2f1070496516687344 https://doi.org/10.1177%2f1070496516687344 agbioforum, 24(3): 109-119. ©2022 agbioforum economic stability and its role in achieving inclusive growth in iraq azhar hasan ali college of administration & economics, university of baghdad, baghdad, iraq email: drazharhassan17@gmail.com this research aims to investigate and analyze the most pressing issues facing the iraqi economy, namely economic stability and inclusive growth consequently, the present study investigates the effect of inflation and unemployment, which are significant contributors to economic instability, on inclusive growth dimensions such as gdp, education, health, governance, poverty, income inequality, and environmental performance. from 1991 to 2021, secondary data were collected using world bank indicators (wdi) and organization for economic cooperation and development (oecd) databases. the researchers also employed the autoregressive distributed lag (ardl) model to determine the relationship between variables. the study revealed that fluctuations in inflation and unemployment rates have had a negative impact on inclusive growth in the iraqi economy. therefore, it is necessary to take all measures to achieve economic stability to meet the most crucial conditions for fostering inclusive growth in iraq. key words: economic stability, inclusive growth, inflation, unemployment, gdp, education, health, governance, poverty, income inequality, environmental performance. 1. introduction the ultimate goal of every nation on earth is to improve the living conditions of its citizens. the countries guarantee optimal utilization of their resources to raise their living standards. in the process of improving the living standard, economic stability is crucial. economic stability is all about providing the populace with a high standard of living. whether the issue is micro or macro, economics is essential in ensuring sustainability. any nation's economy comprises multiple sectors, such as the manufacturing and services sectors. all of these sectors contribute significantly to the sustainability of the economy. economic stability plays a crucial role in attaining inclusive growth by controlling inflation, reducing unemployment, and achieving a balanced balance of payments. economic stability encompasses internal and external economic stability, exemplified by addressing financial problems such as inflation and unemployment. all factors associated with inclusive growth, such as inflation, employment, education, and governance, directly affect people's lives. similarly, inflation is one of the factors that affect all aspects of societal activity. increases and decreases in inflation directly impact commodity prices, which in turn influence the purchasing power of the average person. consequently, the disparity between a society's income and expenditures widens. this increase in the contrast affects their way of life. employment, another factor of inclusive growth, is the key to a better existence. employment is among the most significant differences between developed and developing economies (panigrahi et al., 2020). many people from developing economies migrate to developed economies for improved employment opportunities each year. al-sawaiea, 2020, asserts that there is a significant relationship between employment and economic stability. additionally, education is a fundamental requirement of every society. countries that fail to provide their citizens with a superior education system typically fail to produce a skilled labor force. the globe has evolved into a global commune. this globalization has increased the rate of development. in this process, countries that failed to develop are severely stifled by competition. a nation's education system elevates it from developing to developed status. according to the literature (tchamyou et al., 2019), there is a significant correlation between economic stability and inclusive growth in terms of education. climate is one of the factors that has garnered global attention and is a source of global concern. the global temperature is rising at an accelerated rate. this leads to global warming. global warming has detrimental effects on human life and future generations. similarly, global warming causes the depletion of natural resources, such as the thawing of mountain glaciers, which leads to the depletion of water resources. to safeguard future generations' future and defend human health, it is imperative to take immediate action for environmental stability. literature suggests a close relationship between economic and environmental stability (kihombo et al., 2021). iraq has one of the world's most significant economies. the country's primary source of income is hydrocarbon production. in this context, the nation has experienced numerous conflicts. the nation is in a developmental period. despite confronting the most severe security and economic issues, the nation is resilient. the nation is exerting maximum effort for financial stability. in 2022, the country's gdp was recorded at 7%. in 2023, the government will lose momentum (mohammed, 2022). on the other hand, even though the nation's oil production mailto:drazharhassan17@gmail.com agbioforum, 24(3), 2022 | 110 ali. — economic stability and its role in achieving inclusive growth in iraq increased by 3% in the first quarter of 2023, it is significantly lower than in prior years (dhaireb & fadl, 2022). this is an additional sign of economic instability. in march 2023, the country faced an inflation rate of 6.9%. the county's economic direction is not in the correct direction. the unemployment rate in iraq increased to 14.2% from 14.0 in 2022 (obaid and jassid, 2022). keeping in mind the economic condition of iraq, we will discuss the role of internal and external economic instability in preventing inclusive growth in iraq, where the economy has experienced economic instability, such as high unemployment rates and fluctuating inflation. all of these instances affected iraq's inclusive growth. the balance of payments deficit caused by high imports, low exports, the flight of capital for investment abroad, and the decline in capital inflows for investment in iraq had a negative impact on external economic stability, which in turn had a negative impact on inclusive growth in iraq (zaki & rasheed, 2022). the research concern is the decline of inclusive growth rates in iraq. it is necessary, therefore, to diagnose the causes of the deterioration by analyzing the impact of internal and external economic instability and their role in impeding inclusive development in iraq. the significance of this study rests in the importance of economic stability in iraq and its role in fostering inclusive growth in iraq. the relationship between high inflation and unemployment rates and inclusive growth in iraq is inverse. this research aims to examine indicators of iraq's internal and external economic stability and inclusive growth. in addition, the impact of internal and external economic stability on attaining inclusive growth in iraq must be studied and analyzed. this study discusses previous research and studies that have examined the relationship between economic stability and inclusive growth in specific countries. 2. literature review before delving into its effects, the theoretical framework for the impact of economic stability on inclusive growth must be defined. (ozpence, 2017) the absence of extreme fluctuations or changes in macroeconomic variables characterizes economic stability. there may be an acceptable level of inflation and unemployment that does not impede inclusive economic growth. in some instances, moderate inflation can stimulate investment and production. however, the accumulation of high inflation and unemployment rates inhibits economic activity and expansion. in inclusive growth, the income of the poor increases at a faster rate than the income of the entire population. therefore, it is essential, when discussing inclusive growth, to emphasize equality and the reduction of income disparities. the impact of inflation on the components of inclusive growth (economic development, income inequality, poverty, health and education, governance, and the environment) is examined in this study. diverse economic theories have debated inflation's effect on economic development. others, such as sidrauski (1967) and wallich (1969), have suggested that inflation is detrimental to economic growth (hoang et al., 2020). different studies have determined inflation's positive and negative effects on economic expansion. structuralisms emphasize inflation's significance and significance for economic growth, whereas monetarists emphasize inflation's negative impact on economic growth. other studies, such as friedman's (1973), have found a nondeterministic relationship between inflation and economic growth. friedman noted that some countries have experienced inflation with and without growth, and the converse is also true. similarly, wai (1959) discovered that in some countries, growth was conceivable without inflation, while in others, there was inflation without increase. similarly, johanson et al. (1967) assumes no clear evidence of a positive or negative correlation between inflation and economic growth rates. he asserts that inflation does not determine economic growth but rather the application of knowledge through technical and administrative changes and improving human capabilities (doguwa, 2012). others have discovered that low inflation rates stimulate economic growth. other studies, however, have shown that the impact of inflation on economic growth varies between the short and long term (belmega & boiangiu, 2018). similarly, tien (2021) investigated whether there is a relationship between inflation and economic growth. the investigation was conducted on the vietnamese populace. the investigation used the 45-year data set as a sample. the sample tenure spans the years 1975 through 2020. for purposes of analysis, the study utilized the df test analysis method. according to the analysis outcomes, there is a significant relationship between inflation and economic growth in vietnam. therefore, studies have emphasized the inflation threshold, wherein inflation becomes detrimental to economic growth once it surpasses a certain threshold. therefore, studies have highlighted the inflation threshold, wherein inflation becomes detrimental to economic growth once it surpasses a certain threshold. fischer (1993) was among the first to identify this relationship, and numerous researchers have attempted to estimate the inflation rate at which it becomes detrimental to economic growth. in his cross-country study, sarel (1996) evaluated a threshold of 8%, while ghosh et al. (1999) reported a lower threshold of 2.5% using a larger sample of countries. in addition, adaramola and dada (2020) investigated whether or not there is a correlation between inflation and economic growth. the investigation was conducted on the nigerian populace. the investigation used the 38-year data set as a sample. the sample tenure spans the years 1980 to 2008. the study employed the ardl analysis method for analysis. according to the analysis outcomes, there is a significant relationship between inflation and economic growth in nigeria. the study also investigates inflation's effect on income inequality. when inflation rates increase, the real value of fixed-income groups' income decreases, lowering their agbioforum, 24(3), 2022 | 111 ali. — economic stability and its role in achieving inclusive growth in iraq standard of living. in contrast, the revenue of employers who rely on speculation and short-term business grows, resulting in greater income inequality. as a result, most of the population experiences a significant decline in income. at the same time, a small number of individuals control most of the income, leading to feelings of injustice, poverty, and deprivation. similarly, siami-namini and hudson (2019) investigated whether or not inflation and income inequality are associated. the research was conducted on the populace of 44 developing economies. the investigation utilized the 24-year data set as a sample. the sample tenure spans the years 1990 through 2014. for analysis, the study employed the vecm method. according to the analysis's findings, a significant relationship exists between inflation and income inequality. the study also analyzes inflation's effect on poverty. inflation has a negative impact on poverty because it affects the intermediate channels (economic growth, real income reduction for those on fixed incomes, and widening income inequality). high inflation rates contribute to a decline in real economic growth by producing an unfavorable environment for investment. additionally, inflation has a negative effect on investment and, by extension, economic growth. inflation also affects the actual value of business owners' profits. in this context, azhar (2020) investigated the possibility of a relationship between inflation and poverty. the research was conducted on the populations of asean economies. the investigation used the 19-year data set as a sample. the sample tenure extends from 1999 to 2018. the pls analysis method was employed for analysis in this study. according to the research, there is a significant relationship between inflation and poverty. individuals tend to speculate and purchase real estate and durable products instead of making productive investments when inflation rates are high. this has a negative impact on economic growth and, consequently, on poverty. inflation also has a negative effect on the real value of fixed-income earners, who do not respond to income increases when the general price level rises, causing them to fall into the cycle of poverty. additionally, inflation exacerbates income inequality in favor of classes with variable incomes. consequently, as inflation rates rise, income inequality widens, and poverty levels rise. additionally, the study examines the effects of inflation on health and education. health and education expenditures are negatively impacted by inflation, particularly longterm investment expenditures. the uncertainty induced by high inflation rates also affects health and education expenditures on capital expenditures. in addition, when inflation rates are high, the real value of spending on education and health declines due to the general rise in prices. moreover, in the case of high inflation rates and a reduction in living standards, school leavers increase, leading to a decline in educational and health standards due to children leaving school and exhausting their physical energy at a young age. in the context of inflation and health, turgut et al. (2017) investigated whether an association exists between inflation and health expenditures. the investigation was conducted on the turkish populace. the investigation used the 13-year data set as a sample. the sample tenure extends from 2003 to 2016. the study employed the spss analysis method for analysis purposes. according to the analysis results, there is a significant relationship between inflation and health expenditures. in the context of inflation and education, sequeira (2021) examined whether or not there is a relationship between inflation and education costs. the investigation was conducted on the portuguese populace. according to the findings, there is a significant relationship between inflation and education expenditures. additionally, the research investigates the impact of inflation on governance. governance is also affected by inflation. in the case of high inflation rates and a decline in the real value of wages and salaries, corruption such as bribery, favoritism, blackmail, forgery, and obstructing investments in key sectors increases, leading to a diversion of funds to projects and industries that do not contribute to economic growth. in this context, ho et al. (2021) investigated the possibility of a relationship between inflation and governance. the research was conducted on the populations of 34 developed and developing economies. the investigation used the 17-year data set as a sample. the sample tenure extends from 2002 to 2017. for analysis, the study employed the gmm method. according to the research, there is a significant relationship between inflation and governance. the study also investigates the environmental effects of inflation. the rising rate of inflation is having an immediate impact on the environment. in response to rising prices and a decline in the purchasing power of salaries and wages, people prioritize meeting their basic requirements over environmental preservation, resulting in environmental degradation. ullah et al. (2020) investigated whether there is a correlation between inflation and the environment in this context. the investigation was conducted on the pakistani populace. the investigation used the 43-year data set as a sample. the sample tenure spans the years 1985 through 2018. the study employed the ardl analysis method for analysis. according to the analysis's findings, there is a significant relationship between inflation and the environment. inflation has a negative impact on various aspects of inclusive development, including economic growth, poverty, income distribution, education, health, governance, and the environment, as demonstrated above. this study also examines the effects of unemployment on the components of inclusive growth (economic growth, inequality in income distribution, poverty, health and education, governance, and the environment). first, the study investigates the impact of unemployment on economic development: the relationship between unemployment and economic growth has been the subject agbioforum, 24(3), 2022 | 112 ali. — economic stability and its role in achieving inclusive growth in iraq of extensive debate. some economists have argued that there is no relationship between the two economic variables (solow, 1956), presuming full utilization of production factors, while others, such as gruchelski and niemczyk (2012) and okun (1983), have demonstrated a negative relationship between them. the study also investigates the impact of unemployment on income distribution inequality. there is a positive correlation between unemployment and income distribution inequality. the disparity in income distribution will inevitably widen if the unemployment rate rises and a small portion of the population earns excessively high wages that are not commensurate with their labor. in this context, suhendra et al. (2020) investigated whether unemployment in terms of human capital is associated with income inequality. the investigation was conducted on the indonesian populace. the investigation utilized a six-year data sample. the sample duration ranges from 2013 to 2019. for purposes of analysis, the study used the pdm analysis method. according to the analysis results, there is a significant relationship between unemployment in terms of human capital and income inequality. the study also analyzes the relationship between unemployment and poverty. numerous studies have demonstrated that unemployment has a positive impact on poverty. as the unemployment rate rises, so does the number of people live below the poverty line. this is because those unemployed lack a source of income, rendering them indigent. the situation becomes even more dire when the state reduces social assistance for the unemployed, exacerbating poverty. adelowokan et al. (2019) investigated whether there is a correlation between unemployment and poverty in this context. the investigation was conducted on the nigerian populace. the study utilized the 30-year data set as a sample. the sample tenure spans the years 1985 through 2015. the research employed the adf analysis method for purposes of analysis. according to the analysis results, there is a significant relationship between unemployment in terms of human capital and income inequality. additionally, the research investigates the effects of unemployment on health and education. additionally, unemployment has negative effects on health and education. due to high unemployment rates and a decline in the quality of life, interest in health and education declines, and school dropout rates rise. norstrom et al. (2019) investigated the possibility of a relationship between unemployment and health in this context. the investigation was conducted on the swedish populace. the research utilized a data set of 2500 individuals. the study employed the ardl analysis method for analysis. according to the analysis's findings, unemployment and health have a significant relationship. the study also investigates the environmental effects of unemployment. unemployment contributes to the deterioration of the environment because unemployed individuals are not concerned with procuring a healthy environment but rather a job and a minimum standard of living. in this context, degirmenci and aydin (2021) investigated whether a relationship exists between unemployment and the environment. the investigation was conducted on the inhabitants of five economies. the investigation used the 23-year data set as a sample. the tenure sample spans the years 1994 to 2017. the research employed the adf analysis method for purposes of analysis. according to the analysis's findings, there is a significant connection between unemployment and the environment. additionally, the research investigates the impact of unemployment on governance. the high rates of unemployment, particularly the unemployment of college graduates and the employment of incompetent individuals, encourage corruption manifestations. unemployment can be both a cause and effect of corruption. in this context, meo et al. (2020) investigated whether unemployment and governance are associated in any way. the investigation was conducted on the pakistani populace. the research used the 32-year data set as a sample. the sample tenure extends from 1984 to 2016. the study employed the ardl analysis method for analysis. according to the analysis's findings, unemployment and governance have a significant connection. 3. research methodology this study investigates the impact of inflation and unemployment on inclusive growth dimensions, including gdp, education, health, governance, poverty, income inequality, and environmental performance. the investigation collected secondary data from 1991 to 2021 using wdi and oecd databases. the research equations are listed below: 𝐸𝐺𝑡 = 𝛼0 + 𝛽1𝐼𝑁𝐹𝑡 + 𝛽2𝑈𝐸𝑀𝑡 + 𝑒𝑡 (1) 𝐼𝐼𝐸𝑡 = 𝛼0 + 𝛽1𝐼𝑁𝐹𝑡 + 𝛽2𝑈𝐸𝑀𝑡 + 𝑒𝑡 (2) 𝑃𝑂𝑉𝑡 = 𝛼0 + 𝛽1𝐼𝑁𝐹𝑡 + 𝛽2𝑈𝐸𝑀𝑡 + 𝑒𝑡 (3) 𝐻𝐿𝑡 = 𝛼0 + 𝛽1𝐼𝑁𝐹𝑡 + 𝛽2𝑈𝐸𝑀𝑡 + 𝑒𝑡 (4) 𝐸𝐷𝑡 = 𝛼0 + 𝛽1𝐼𝑁𝐹𝑡 + 𝛽2𝑈𝐸𝑀𝑡 + 𝑒𝑡 (5) 𝐺𝑂𝑉𝑡 = 𝛼0 + 𝛽1𝐼𝑁𝐹𝑡 + 𝛽2𝑈𝐸𝑀𝑡 + 𝑒𝑡 (6) 𝐸𝑁𝑉𝑡 = 𝛼0 + 𝛽1𝐼𝑁𝐹𝑡 + 𝛽2𝑈𝐸𝑀𝑡 + 𝑒𝑡 (7) where; eg = economic growth iie = income inequality pov = poverty hl = health ed = education gov = governance env = environment t = time period inf = inflation uem = unemployment the study used inclusive growth as the dependent variable, with gdp as the proxy for gdp growth (annual percentage), income inequality as the proxy for the gini agbioforum, 24(3), 2022 | 113 ali. — economic stability and its role in achieving inclusive growth in iraq index, poverty as the proxy for the poverty headcount ratio (percent of the total population), education as the proxy for government expenditures on education (percent of gdp), health as the proxy for current health expenditures (percent of gdp), governance as the proxy for the global governance index, and environment as the proxy for co2 emissions (metric tons per capita). in addition, the study used economic stability as a predictor, using inflation proxies as the consumer price index (annual percentage) and unemployment proxies as the unemployment total (percentage of the total labor force) as measurements. table 1 are listed these measurements. table 1: variables with measurements s# variables measurement sources 01 economic growth gdp growth (annual percentage) wdi 02 income inequality gini index wdi 03 poverty poverty headcount ratio (% of the total population) wdi 04 education government expenditures on education (% of gdp) wdi 05 health current health expenditures (% of gdp) wdi 06 governance global governance index oecd 07 environment co2 emissions (metric tons per capita) wdi 08 inflation consumer price index (annual percentage) wdi 09 unemployment unemployment total (% of the total labor force) wdi this study uses descriptive statistics to examine the specifics of the understudy's constructs. in addition, the correlation between the constructs is reviewed using a correlation matrix. in addition, the unit root is studied using the augmenteddickey–fuller test (adf). the equation is given as follows: 𝑑(𝑌𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑌𝑡−1 + 𝑑(𝑌𝑡(−1)) + ɛ𝑡 (8) the researchers also employed the autoregressive distributed lag (ardl) model to determine the relationship between variables. it regulates all factors that influence estimations, including autocorrelation and heteroscedasticity. in addition, it is appropriate when the level and first difference of the constructs are stationary. it is also appropriate when the sample size is modest (sharif, baris-tuzemen, uzuner, ozturk, and sinha, 2020), as this article contains 31 observations. the following equations are given: ∆𝐺𝐷𝑃𝑡 = 𝛼0 + ∑𝛿1∆𝐺𝐷𝑃𝑡−1 + ∑𝛿2∆𝐼𝑁𝐹𝑡−1 + ∑𝛿3∆𝑈𝐸𝑀𝑡−1 + ɛ1 (9) ∆𝐼𝐼𝐸𝑡 = 𝛼0 + ∑𝛿1∆𝐼𝐼𝐸𝑡−1 + ∑𝛿2∆𝐼𝑁𝐹𝑡−1 + ∑𝛿3∆𝑈𝐸𝑀𝑡−1 + ɛ1 (10) ∆𝑃𝑂𝑉𝑡 = 𝛼0 + ∑𝛿1∆𝑃𝑂𝑉𝑡−1 + ∑𝛿2∆𝐼𝑁𝐹𝑡−1 + ∑𝛿3∆𝑈𝐸𝑀𝑡−1 + ɛ1 (11) ∆𝐻𝐿𝑡 = 𝛼0 + ∑𝛿1∆𝐻𝐿𝑡−1 + ∑𝛿2∆𝐼𝑁𝐹𝑡−1 + ∑𝛿3∆𝑈𝐸𝑀𝑡−1 + ɛ1 (12) ∆𝐸𝐷𝑡 = 𝛼0 + ∑𝛿1∆𝐸𝐷𝑡−1 + ∑𝛿2∆𝐼𝑁𝐹𝑡−1 + ∑𝛿3∆𝑈𝐸𝑀𝑡−1 + ɛ1 (13) ∆𝐺𝑂𝑉𝑡 = 𝛼0 + ∑𝛿1∆𝐺𝑂𝑉𝑡−1 + ∑𝛿2∆𝐼𝑁𝐹𝑡−1 + ∑𝛿3∆𝑈𝐸𝑀𝑡−1 + ɛ1 (14) ∆𝐸𝑁𝑉𝑡 = 𝛼0 + ∑𝛿1∆𝐸𝑁𝑉𝑡−1 + ∑𝛿2∆𝐼𝑁𝐹𝑡−1 + ∑𝛿3∆𝑈𝐸𝑀𝑡−1 + ɛ1 (15) in equation above equations, δ1, δ2, δ3, δ4, & δ5 shows the short-term coefficients; while, φ1, 𝜑2, φ3, φ4, φ5, & ɛ1 show the long-term coefficients and error term. moreover, the ecm equation is given below for short-run relationships. ∆𝐺𝐷𝑃𝑡 = 𝛼0 + ∑𝛿1∆𝐺𝐷𝑃𝑡−1 + ∑𝜑2∆𝐼𝑁𝐹𝑡−1 + ∑⍵3∆𝑈𝐸𝑀𝑡−1 + 𝛿𝐸𝐶𝑀𝑡 + 𝜐𝑡 (16) ∆𝐼𝐼𝐸𝑡 = 𝛼0 + ∑𝛿1∆𝐼𝐼𝐸𝑡−1 + ∑𝜑2∆𝐼𝑁𝐹𝑡−1 + ∑⍵3∆𝑈𝐸𝑀𝑡−1 + 𝛿𝐸𝐶𝑀𝑡 + 𝜐𝑡 (17) ∆𝑃𝑂𝑉𝑡 = 𝛼0 + ∑𝛿1∆𝑃𝑂𝑉𝑡−1 + ∑𝜑2∆𝐼𝑁𝐹𝑡−1 + ∑⍵3∆𝑈𝐸𝑀𝑡−1 + 𝛿𝐸𝐶𝑀𝑡 + 𝜐𝑡 (18) ∆𝐸𝐷𝑡 = 𝛼0 + ∑𝛿1∆𝐸𝐷𝑡−1 + ∑𝜑2∆𝐼𝑁𝐹𝑡−1 + ∑⍵3∆𝑈𝐸𝑀𝑡−1 + 𝛿𝐸𝐶𝑀𝑡 + 𝜐𝑡 (19) ∆𝐻𝐿𝑡 = 𝛼0 + ∑𝛿1∆𝐻𝐿𝑡−1 + ∑𝜑2∆𝐼𝑁𝐹𝑡−1 + ∑⍵3∆𝑈𝐸𝑀𝑡−1 + 𝛿𝐸𝐶𝑀𝑡 + 𝜐𝑡 (20) ∆𝐺𝑂𝑉𝑡 = 𝛼0 + ∑𝛿1∆𝐺𝑂𝑉𝑡−1 + ∑𝜑2∆𝐼𝑁𝐹𝑡−1 + ∑⍵3∆𝑈𝐸𝑀𝑡−1 + 𝛿𝐸𝐶𝑀𝑡 + 𝜐𝑡 (21) ∆𝐸𝑁𝑉𝑡 = 𝛼0 + ∑𝛿1∆𝐸𝑁𝑉𝑡−1 + ∑𝜑2∆𝐼𝑁𝐹𝑡−1 + ∑⍵3∆𝑈𝐸𝑀𝑡−1 + 𝛿𝐸𝐶𝑀𝑡 + 𝜐𝑡 (22) 4. research findings this study uses descriptive statistics to examine the specifics of the understudy's constructs. the results revealed that the average gdp value was 6.114 percent, iie was 28.538%, pov was 4.196 percent, ed was 4.55%, and hl was 2.945%. in addition, the results revealed that the average gov value was 113.719%, the average env value was 3.718% per capita, the average inf value was 50.680%, and the average uem value was 9.924%. these results are shown in table 2. in addition, the correlation between the constructs is examined using a correlation matrix. the study revealed that fluctuations in inflation and unemployment rates have had a negative impact on inclusive growth in the iraqi economy. therefore, it is necessary to take all measures to achieve economic stability to meet the most crucial conditions for fostering inclusive growth in iraq. these results are shown in table 3. agbioforum, 24(3), 2022 | 114 ali. — economic stability and its role in achieving inclusive growth in iraq table 2: descriptive statistics variable obs mean std. dev. min max gdp 31 6.114 20.368 -64.047 53.382 iie 31 28.538 1.112 26.706 30.370 pov 31 4.196 0.632 3.103 5.239 ed 31 4.555 0.393 4.282 5.810 hl 31 2.945 0.804 1.823 5.085 gov 31 113.719 18.864 77.350 149.039 env 31 3.718 0.684 2.552 5.325 inf 31 50.680 109.96 -16.117 448.500 uem 31 9.924 2.374 7.960 16.230 table 3: matrix of correlations variables gdp iie pov ed hl gov env inf uem gdp 1.000 iie -0.063 1.000 pov -0.050 0.998 1.000 ed 0.126 0.751 0.752 1.000 hl 0.040 0.840 0.846 0.813 1.000 gov 0.036 0.081 0.078 0.076 0.013 1.000 env 0.304 -0.098 -0.098 0.191 -0.080 0.110 1.000 inf -0.116 -0.552 -0.561 -0.278 -0.467 -0.102 0.391 1.000 uem -0.172 0.666 0.666 0.958 0.746 -0.035 0.264 -0.182 1.000 moreover, the study also checks the unit root with the help of the adf test. the outcomes exposed that the eii, ed, and inf are stationary at a level while gdp, pov, hl, gov, env, and uem are stationary at first difference. these outcomes are given in table 4. table 4: unit root test the co-integration is also examined using the ardl bound test, and the results indicate that the f-statistic values exceed the critical values. these values revealed co-integration departures. these results are shown in table 5. table 5: ardl bound test model f-statistics lag level of significance bound test critical values i(0) i(1) gdp/ (inf, uem) 5.452 4 1% 6.32 6.45 eii/ (inf, uem) 6.101 pov/ (inf, uem) 5.091 ed/ (inf, uem) 5.001 5% 5.54 5.98 hl/ (inf, uem) 6.098 gov/ (inf, uem) 5.998 env/ (inf, uem) 5.463 10% 4.13 4.45 the study revealed that fluctuations in inflation and unemployment rates have a negative impact on inclusive growth in the short term for the iraqi economy. therefore, it is necessary to take all measures necessary to achieve economic stability to meet the most crucial conditions for fostering inclusive growth in iraq. these results are shown in table 6. the study revealed that fluctuations in inflation and unemployment rates have a negative impact on inclusive growth over the long term for the iraqi economy. therefore, it is necessary to take all measures necessary to achieve economic stability to meet the most crucial conditions for fostering inclusive growth in iraq. these results are shown in table 7. augmented dickey-fuller test (adf) level t-statistics p-values gdp i(1) -5.635 0.000 eii i(0) 2.342 0.022 pov i(1) -3.021 0.011 ed i(0) -2.101 0.043 hl i(1) -4.301 0.000 gov i(1) -5.261 0.000 env i(1) -4.675 0.000 inf i(0) -2.188 0.037 uem i(1) 5.019 0.000 agbioforum, 24(3), 2022 | 115 ali. — economic stability and its role in achieving inclusive growth in iraq table 6: short-run coefficients variable coefficient t-statistic prob. gdp d(inf) -0.610 -3.866 0.008 d(uem) -0.787 -5.243 0.000 eii d(inf) 1.203 7.436 0.000 d(uem) 1.534 5.870 0.000 pov d(inf) 2.912 3.201 0.014 d(uem) 0.463 2.101 0.043 ed d(inf) -1.292 -3.291 0.011 d(uem) -3.271 -5.473 0.000 hl d(inf) -2.261 -4.389 0.000 d(uem) -2.160 -4.382 0.000 gov d(inf) -2.372 -2.191 0.044 d(uem) -1.292 -5.474 0.000 env d(inf) 0.564 3.281 0.011 d(uem) 0.463 5.478 0.000 cointeq(-1)* -1.432 -8.702 0.000 r-squared 0.651 adjusted r-squared 0.615 table 7: long-term coefficients variable coefficient t-statistic prob. gdp inf -1.327 -3.203 0.012 uem -3.982 -3.268 0.010 eii inf 1.332 4.367 0.000 uem 2.545 3.031 0.016 pov inf 3.101 3.271 0.009 uem 0.765 6.646 0.000 ed inf -4.376 -3.353 0.004 uem -5.482 -2.181 0.021 hl inf -1.282 -4.372 0.000 uem -4.573 -3.278 0.011 gov inf -0.857 -5.472 0.000 uem -0.564 -4.372 0.000 env inf 0.454 3.261 0.007 uem 1.383 2.181 0.019 c 0.923 3.491 0.006 5. discussions the results indicated that inflation has a negative effect on the country's economic growth. karahan and olak (2020) supported this theory as well. according to them, inflation causes an increase in the price of goods and services, resulting in a decline in the purchasing power of individuals as they require more money to purchase the same goods and services. this decline will reduce investment and consumption, thereby impeding the development of the economy. a rise in the inflation rate can cause economic uncertainty. due to future uncertainty and low returns, the business community hesitates to invest in capital. this resulted in a decline in investment levels necessary for economic expansion. in addition, inflation leads to erroneous economic decisions due to price fluctuations; as prices rise, it becomes impossible for individuals to distinguish between changes in overall and relative price levels. the findings demonstrated that unemployment hinders economic development. past research by pasara and garidzirai (2020) also lends credence to this theory. according to them, due to unemployment, people's incomes will decrease, resulting in reduced product demand and a consequent slowing of economic development. due to unemployment, individuals will be unable to pay taxes, which reduces the government's revenue and makes it difficult to finance initiatives that promote economic growth. additionally, unemployment negatively affects society by increasing poverty, crime, and social unrest, which negatively affects the nation's economy. moreover, due to prolonged unemployment, individuals will be unable to acquire new and innovative market skills, preventing them from being able to compete in the market due to a lack of market requirements. the findings demonstrated that inflation exacerbates income inequality. law and soon (2020) supported this hypothesis in a previous study. according to them, inflation causes difficulties for those with fixed incomes, such as those who rely on fixed salaries or pensions, because the price of their products rises while their income remains constant. individuals with limited access to resources or finances are adversely affected by inflation because, as prices rise, they will no longer be able to afford the goods, particularly those confronting inequality. moreover, inflation causes the redistribution of wealth, thereby favoring certain groups, such as those whose businesses or asset prices rise, increasing wealth. those agbioforum, 24(3), 2022 | 116 ali. — economic stability and its role in achieving inclusive growth in iraq with fixed incomes, however, struggle to cope with these escalating prices. according to the findings, unemployment increases income inequality. in prior research, heathcote et al. (2020) also supported this hypothesis. according to them, unemployment causes income loss, particularly for those who cannot find employment. the failure of income may result in income inequality, as unemployed individuals suffer economically. prolonged unemployment will lead to a decline in skills, contributing to income inequality because a shortage of skills will reduce their earning potential. additionally, the period of unemployment will make it difficult for individuals to re-enter the business community or obtain new employment opportunities. in addition, it impedes promotions and the acquisition of the highest-paying positions compared to those with continuous employment. the findings demonstrated that inflation exacerbates destitution. ha et al. (2019) supported this hypothesis in prior research. according to them, inflation worsens destitution by driving up the cost of essential goods. when the cost-of-living rises, it becomes more difficult for lowincome individuals to manage essentials such as healthcare, education, and food, making it more difficult to afford their requirements. these circumstances push individuals deeper into poverty, making their lives more difficult. in addition, if salaries cannot keep up with inflation, the income of salaried individuals will decrease, making it more difficult for them to meet their basic requirements. a rise in the inflation rate may result in economic uncertainty, reducing business initiatives or investments as well as job creation, thereby aggravating poverty. the findings indicated that unemployment increases poverty in the nation. prasetyo and cahynai (2022) supported this hypothesis in a previous study. according to them, unemployment results in a loss of income, rendering the individual unable to work. these individuals will fall into poverty as they can no longer meet their basic needs. lack of unemployment makes it difficult for people to earn a living and contributes to an increase in the country's crime rate and economic instability. additionally, unemployment restricts individuals' access to essential services or resources, making it difficult for unemployed individuals with limited incomes to obtain an education, food, or housing. the results demonstrated that inflation can result in serious health problems. in a previous investigation, gomezgonzález (2021) also supported this theory. the cost of healthcare, such as remedies, medical consultations, and medications, has increased due to inflation. as prices rise, low-income individuals may struggle to afford the essentials of healthcare, resulting in various health problems. inflation also affects the accessibility and affordability of pharmaceuticals necessary to treat various diseases. inflation also raises the cost of pharmaceuticals, making them prohibitively expensive for the middle class and the poor. the findings indicated that unemployment negatively affects people's health. parola and marcionetti (2021) supported this hypothesis in a previous study. according to them, unemployment increases an individual's anxiety, tension, or depression. loss of employment degrades the mental health of individuals, lowering their self-esteem and causing emotional distress or hopelessness. due to financial constraints, unemployed individuals may have difficulty accessing healthcare facilities. unemployment also encourages hazardous behaviors such as poor nutrition, smoking, and inactivity. these behaviors increase the risk of chronic diseases such as obesity, mental illness, and others that have a negative impact on individuals' health. the findings indicated that inflation has a negative effect on people's education. mandeya and ho's investigation from 2022 also supported this hypothesis. according to them, inflation will increase educational expenses such as textbooks, tuition, and other costs. as prices rise, it becomes increasingly difficult for individuals to afford an education. particularly for individuals from low-income backgrounds, inflation reduces the cost of education. the findings revealed that unemployment has a negative impact on the education of individuals. hogberg et al.'s (2019) previous study supported this hypothesis. according to them, unemployment creates financial constraints that make it difficult for individuals to afford a fundamental education. people are deprived of education due to their limited access to educational programs and institutions due to financial constraints. unemployment restricts a person's access to educational support systems because, without employment, they cannot afford training programs, practical experience, software, or tools to investigate a particular field. the results demonstrated that a rise in inflation has negative effects on governance. asongu and nnanna (2019) supported this hypothesis in a previous study. according to them, the inflation rate causes economic instability, making it difficult for the government to develop or initiate new initiatives or infrastructure for the nation's betterment. as the value of money erodes, inflation causes volatility and uncertainty. the results demonstrated that unemployment has a negative effect on governance. in a previous study, evans and kelikume (2019) also supported this hypothesis. according to them, unemployment reduces the number of individuals who pay taxes, thereby decreasing tax revenue. this restricts the government's ability to fund new initiatives or public services, particularly in education, infrastructure, healthcare, and social welfare. this also contributes to reduced service provision, lowering the quality of government services. the findings indicated that inflation has a negative impact on the environment. as inflation rises, governments encounter a variety of challenges that have an effect on agbioforum, 24(3), 2022 | 117 ali. — economic stability and its role in achieving inclusive growth in iraq energy conservation budgets. reduced financial resources disrupt conservation programs, hindering efforts to manage and protect natural resources and mitigate climate change. the results demonstrated that unemployment has an adverse effect on the environment. unemployment causes poverty and financial difficulties as individuals struggle to meet their basic needs and may engage in illegal activities, such as unlawful logging or poaching, with negative repercussions. it is crucial to address unemployment to mitigate the negative impact on the environment. 6. conclusions internal economic stability, represented by inflation and unemployment, and external economic stability, characterized by the balance of payments, play an important role in stimulating inclusive growth. the decrease in inclusive growth rates in iraq is due to a decline in its components, indicating that inclusive growth in iraq is close to the threshold for inclusive growth. throughout the study period, the fluctuating unemployment and inflation rates in iraq and the fluctuating balance of payments demonstrated the absence of seriousness of the economic policies pursued to achieve internal and external economic stability. inflation and unemployment rates have a negative effect on inclusive growth in iraq. as a result of a decline in the unemployment rate to 10.82%, inclusive growth attained its highest point during the study period, reaching 1.433% in 2016. the lowest inclusive growth rate was recorded in 2003, when the inflation rate increased relative to the following year, reaching 32.57 percent. the imbalance in the balance of payments has a distinct and negative effect on inclusive growth in iraq. the balance of payments deficit reached 3.36, with a negative rate of change of 138.62 in 2020, negatively impacting inclusive growth. in the same year, the most negative rate of change was recorded at 9.94%. 7. recommendations the components of inclusive growth in iraq must be improved by focusing on health and education, governance, improving the environment, boosting economic growth rates, increasing employment and the labor force, and reducing poverty and income inequality while adhering to all necessary procedures and measures. increasing government investments and encouraging the private sector to invest can increase employment and reduce unemployment in iraq to absorb the expanding labor force and prevent unemployment from becoming an impediment to achieving inclusive growth. to achieve the objective of stimulating inclusive growth in iraq, fiscal, monetary, and trade policies must be coordinated to combat inflation and preserve the value of the iraqi dinar. the imbalance in iraq's balance of payments can be addressed by revitalizing other economic sectors to increase exports providing facilities and support for foreign investments, and thereby preventing the imbalance from becoming an impediment to inclusive growth. 8. limitations the limitations of this paper can be addressed in the future. this paper examines the impact of inflation and unemployment on economic growth, income inequality, poverty, health, education, government, and the environment. in the future, additional factors of government instability, government policies, or lack of infrastructure can be used to analyze their impact on economic growth, income inequality, poverty, health, education, and governance. no moderator was used in this article. future researchers can also use illiteracy or financial issues as moderators to examine the relationship between inflation, unemployment, economic growth, income inequality, poverty, health, education, and governance. references adaramola, a. o., & dada, o. 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https://ssrn.com/abstract=3476647 https://www.jstor.org/stable/1821653 https://doi.org/10.2307/1884513 https://pdfs.semanticscholar.org/c884/3b152ff730ef2625e96f41627f32dcb13a9d.pdf https://pdfs.semanticscholar.org/c884/3b152ff730ef2625e96f41627f32dcb13a9d.pdf https://doi.org/10.1111/1467-8268.12388 https://turcomat.org/index.php/turkbilmat/article/download/11534/8469 https://turcomat.org/index.php/turkbilmat/article/download/11534/8469 https://doi.org/10.2307/1910352 https://www.researchgate.net/profile/meryem-turgut/publication/318673974 https://www.researchgate.net/profile/meryem-turgut/publication/318673974 https://doi.org/10.1007/s11356-020-09258-2 https://doi.org/10.2307/3866244 https://doi.org/10.2307/1991275 https://www.iasj.net/iasj/article/241562 agbioforum, 25(1): 58-67. ©2023 agbioforum comparative study on leaf disease identification using yolo v4 and yolo v7 algorithm wang xinming dr, professor, ph.d., department of mechanical and manufacturing engineering， upm，43400， malaysia email: gs62785@student.upm.edu.my tang sai hong* * dr professor, ph.d., department of mechanical and manufacturing engineering， upm，43400， malaysia email: saihong@upm.edu.my mohd khairol anuar b. mohd ariffin dr, professor, ph.d., department of mechanical and manufacturing engineering， upm，43400， malaysia email: khairol@upm.edu.my mohd idris shah b. ismail dr, professor, ph.d., department of mechanical and manufacturing engineering， upm，43400， malaysia email: ms_idris@upm.edu.my agriculture is the primary occupation of nearly all nations that feed the world's population. the population growth and rising demand for food require farmers to increase food production to meet the requirements. on the other hand, farming is not regarded as a lucrative occupation, as farmers incur significant losses due to pests and diseases that reduce the quality and quantity of farm produce. consequently, predicting plant diseases using modern technologies will aid producers in making well-informed decisions early on. this study employs and compares the results of two important computer vision algorithms, yolov4 and yolov7, for classifying leaf diseases from images of leaves from various plant species. the models are trained with images of individual leaves captured in various environments, imparting resilience and adaptability. both models annotate and predict leaf diseases with high confidence for each class. other classification metrics, such as precision, f1-score, mean average precision, and recall, also demonstrate competitive performance. however, yolov7 performs better because its flexible labeling mechanism dynamically learns the class labels. in addition, the work can be expanded to utilize recommendation strategies to predict the extent of injury. keywords: plant leaf disease, yolo v4, yolo v7, spatial pyramid pooling, mean average precision, iou, compound scaling, precision agriculture 1. introduction the world's population is expected to increase by 30% over the next 35 years, bringing the total to over 8 billion (as shown in fig. 1). according to a report by the food and agricultural organization (fao), it is necessary to increase agricultural yields by at least 60 percent in order to meet global food demands (alexandratos & bruinsma, 2012). the agricultural harvests of the past 50 years demonstrate that an ambitious objective of 2800 kcal/person/day can be reached from 2200 kcal/person/day. despite this growth, many people are starving because food distribution is not uniform. fig 1: world population growth trend green revolution, the replacement of traditional agricultural practices with modern technologies, use of agrochemicals, mechanization of labor, efficient water management, expansion of irrigated land, and advancements in food storage and processing technologies are the primary boosters of food production, according to siedow (2001). as shown in fig. 2, there is an annual upward trend in the yields of primary commodities. fig 2: increase in yield of primary crops around the world despite these positive factors, urbanization, industrialization, labor market scarcity, climatic factors, and ancient agricultural techniques threaten global agriculture. this climatic barrier has spawned a potential biological hazard to crops, reducing food production quality and quantity (nguyen, sahin, & howes, 2021). farmers and governments attempt to adopt effective control measures by correlating the plant's epidemiological parameters with their cultivation landscape (gilligan, 2008). the damages caused by pest and disease attacks should not be minimized because they significantly threaten crop productivity. plant diseases are categorized broadly as abiotic or noninfectious and biotic or infectious. unfavorable environmental conditions promote the development of non-communicable diseases in plants, which are the primary cause of disease transmission. in addition, the fragile physicochemical composition of atmospheric factors such as air and soil also plays a significant role in the genesis of disease. as depicted in figure 3, microorganisms such as fungi, viruses, bacteria, parasites, mailto:gs62785@student.upm.edu.my mailto:saihong@upm.edu.my mailto:khairol@upm.edu.my mailto:ms_idris@upm.edu.my agbioforum, 25(1), 2023 | 59 xinming, hong, mohd ariffin, ismail. — comparative study on leaf disease identification using yolo v4 and yolo v7 algorithm and nematodes cause infections and diseases in various plant parts (anderson et al., 2004). monitoring conditions such as spotted leaves, leaf exfoliation, ulceration, rots, alterations in leaf structure, anthracnose, etc., makes it simple to identify infected plants. in addition to affecting the quality, the damage caused by these infections inevitably reduces productivity. consequently, the agricultural sector is adopting modern agricultural practices with technologies such as agriculture 4.0, precision agriculture (pa), and others. fig 3: genesis of plant diseases shafi et al. (2019) precision agriculture concentrates on a holistic approach to agricultural management that combines spatial, temporal, and individual data with other pertinent information to manage crops effectively. pa would result in increased productivity, efficiency, profitability, and quality (cisternas, velásquez, caro, & rodríguez, 2020). the pa has encouraged using digital and analytical instruments in agricultural settings. after the introduction of data-driven technologies such as computer vision (cv), machine learning (ml), internet of things (iot), deep learning (dl), and big data analytics in the farming-based decision-making process, the agricultural sector has experienced explosive growth (aravindhan & tamjis, 2022; sharanya, venkataraman, & murali, 2021). fig 4: applications of computer applications in precision agriculture according to the literature, cv algorithms are utilized in plant health monitoring, harvesting, pruning, planting, and weather analysis. cv is an ai subfield that enables machines to analyze, interpret, and visualize data. incorporating cv into the agricultural sector is a gamechanger that enables automated agricultural processing (lu & young, 2020). the use of cv algorithms enables producers to make informed decisions. when satellite and geospatial images were incorporated into the research, technological advancements attained their pinnacle (jia liu et al., 2021). figure 4 depicts the most prevalent agrovision applications in pennsylvania. as cv systems ensure non-destructive, non-intrusive, and non-invasive procedures, particularly for image-based issues, they are readily implemented in agriculture. in addition, it can record and store data for an extended period of time, allowing it to be utilized in the near future (firdaus & kamil, 2022). these algorithms can supplant laborious, inefficient, time-consuming, and inaccurate manual inspection (ratnayake, dyer, & dorin, 2021). this more robust sensing technology can be used to monitor numerous agricultural areas because cv algorithms rely on the three fundamental phases of cv, which consist of image collection from a live camera feed or recorded source, image processing, and image analysis. fig 5: types of cv problems the identification or detection of an image verifies whether the object in the image conforms to a pattern described in the source. this validation is based on the similarity measure of the extracted features of the image embeddings (yuan, chen, wu, & li, 2022). object detection algorithms, conversely, are a step ahead by determining the coordinates or exact locations of objects that fit under a specific class label (persello, tolpekin, bergado, & de by, 2019). the classification of an image assigns the object to a specific class label (hashemi-beni & gebrehiwot, 2020). cv algorithms can detect multiple objects within a single image. cv algorithms can perform semantic segmentation to comprehend the image's context or scenic information (anand, sinha, mandal, chamola, & yu, 2021; chai, zeng, li, & ngai, 2021). powerful dl algorithms are versatile and robust and produce more accurate results in nearly all real-time image recognition problems due to their adaptability and durability. deep genesis of plant leaf disease biotic factors • virus • bacteria • fungal infections • nematodes • algal growth • protozoans • parasitic plant growth abiotic factors • insufficient nutrient levels • overuse/ underuse of pesticides • impact of pollutants • inappropriate climatic conditions • imbalanced soil moisture level types of problems in computer vision image classification classification and localization object detection semantic segmentation agbioforum, 25(1), 2023 | 60 xinming, hong, mohd ariffin, ismail. — comparative study on leaf disease identification using yolo v4 and yolo v7 algorithm neural networks (dnn), convolutional neural networks (cnn), resnet, yolo, rnn-cnn, inception net, alexnet, lenet, etc. patrício and rieder (2018) catalyzed the main breakthrough in cv. these architectures made it feasible to develop cv and image recognition-based solutions for accurately identifying, classifying, and analyzing agricultural images. 2. leaf disease detection traditional methods for isolating and detecting plant diseases rely on agricultural specialists' manual experience and unaided eye examination. this requires continuous monitoring of plants, which is extremely monotonous, time-consuming, and inaccurate. in addition, the cost of the manual inspection in large farms is quite significant. in addition, a limited number of domain specialists are available for consultation, which impacts accessibility and increases waiting times (allahyari, mohammadzadeh, & nastis, 2016). under such circumstances, the disease may spread and affect a significantly larger area of crops. consequently, automatic surveillance of plants to detect the presence of any type of disease is a natural alternative that would be much cheaper and quicker, even for large farms. automatic plant leaf disease detection is achieved by using machine vision algorithms to provide imagebased process control, monitoring, and guidance via appropriate decision support systems (sujatha, chatterjee, jhanjhi, & brohi, 2021). the entire procedure is depicted in figure 7. consequently, contemporary technologies such as iot, ml, dl, bda, and cloud computing are utilized to detect plant leaf maladies in various plant species by analyzing various physical plant characteristics. the overall investigation is conducted by examining morphological properties and characteristics such as intensity, dimension, and color (gavhale & gawande, 2014). fig. 7 depicts several prevalent plant diseases. fig 6: process of plant lead disease detection detection of leaf diseases promptly enables producers to initiate early disease management strategies, thereby increasing agricultural output. as is evident, pa is the foundation for leveraging modern technologies to improve and modernize agricultural practices. the cv algorithms are an efficient method for image-based crop monitoring. this study employs the well-known you only look once (yolo v4 and yolo v7) models to detect and classify leaf diseases. in addition, it analyzes the distinguishing characteristics of both models and compares their efficacy in classifying plant leaf diseases. the yolo belongs to the category of single shot detection (ssd) algorithms (jiang, ergu, liu, cai, & ma, 2022); it can classify or label diseased leaves with a substantial improvement in both time and accuracy, making it more suited for real-time farming applications. fig 7: types of plant leaf diseases pre-process and normalize detection of infected areas extraction of features from infected and normal area pre-process and normalize leaf images agbioforum, 25(1), 2023 | 61 xinming, hong, mohd ariffin, ismail. — comparative study on leaf disease identification using yolo v4 and yolo v7 algorithm 3. literature survey traditional agricultural practices involved manual inspection of leaves. the advent of ai, dl, and cv has made pest and plant disease identification simpler and more accurate. this evolution results from cutting-edge computing technologies, which have attracted many researchers to explore pa further and develop novel models. noguchi, reid, zhang, and tian (1998) developed a hybrid ml model that combined genetic algorithm (ga) with optimized fuzzy rules to select more suitable crop features from the images. singh and misra (2017) state that artificial neural networks (ann) are used to isolate plants in fields at various growth stages. the primary contribution of this work is extracting weeding information from the geographic information system (gis) for a more precise separation of weeds of varying heights. a com. arivazhagan, shebiah, ananthi, and varthini (2013) examines various soft computing techniques in addition to the design of a novel model by integrating ga and support vector machine (svm). ga is used to segment or isolate the infected portion, whereas svm employs minimum distance for classification. to isolate diseased pine leaves, segmentation is performed using color co-occurrence. the pa is advancing in a new dimension after the advent and development of cv, ml, and dl algorithms. in dl and ml-based methods, image classification is performed in stages that enable the detection and localization of single and multiple objects from an input image. this is accomplished in two ways: 1) generate a sequence of candidate frames to serve as samples. ml or dl algorithms will classify the images based on these reference images, as in rcnn, speedier rcnn, and rfcn (dai, li, he, & sun, 2016; girshick, donahue, darrell, & malik, 2014; ren, he, girshick, & sun, 2015). w. liu et al. (2016) categorized the transformation of object locations by drawing bounding frames and modifying the application as a regression problem. li, ahmed, wu, and sethi (2022) conducted a comprehensive investigation of leaf disease in jute plants and constructed a yolo-jd architecture with three feature extraction modules. this model examines the input image from multiple perspectives, including constructing features via spatial pyramid pooling, sand clock, and deep sand clock methods, to extract significant features from leaf images. mohandas, anjali, and varma (2021) note that a distinguishing feature of yolo is incorporating the disease detection module as a mobile application to facilitate its deployment in agricultural fields. in addition, ponnusamy, coumaran, shunmugam, rajaram, and senthilvelavan (2020) have developed a wearable device to detect leaf diseases. a computational module on the device performs classification using the yolo framework. alternately, a pyramid of tomato leaf images was used to enhance the multi-scale feature detection, thereby enhancing the performance efficacy of yolo (jun liu & wang, 2020). using a pre-trained alexnet architecture and 13,689 reference images, the detection of common leaf maladies in apple plants was accomplished. the infected leaf is identified by a robust cnn (fuentes, yoon, kim, & park, 2017; mohanty, hughes, & salathé, 2016). r-cnn integrated with long short-term memory (lstm) is used to detect tomato leaf disease and parasite disease. metadata from faster r-cnn, rcnn, ssd, and r-fcn are compared with meta-features extracted from resnet and vgg in a comparative analysis of cv architectures for leaf disease identification. the classification of 13 leaf maladies using the cnn framework in the caffe framework is performed (sladojevic, arsenovic, anderla, culibrk, & stefanovic, 2016) with high accuracy. sibiya and sumbwanyambe (2019) is a publication that employs cnn to designate maize leaf diseases. the model could annotate three categories of diseases in south african maize field images. extensive research indicates that cv algorithms based on deep learning are extraordinarily useful for producers. despite these advancements, models for plant disease detection still face several obstacles: 1. the plant foliage may be captured against various cluttered backgrounds, hindering detection. 2. every plant species has a distinct leaf arrangement and structure, so the model must also understand this. 3. there is a high probability that the leaves retain their original structure but are covered in mud, and stalks, are partially torn, have withered blossoms, etc. 4. parasites, diseases, and grazing animals alter the morphological properties of the leaves. this complicates the detection process. 5. image quality is affected by environmental conditions, camera fidelity, and the atmosphere. 6. drawing a sharp, well-defined line between infected and uninfected areas is difficult. 7. the disease's symptoms are not typical. climate, environment, and geographic location influence changes in disease-causing agents. this makes the detection and labeling processes difficult. the enumerated difficulties in leaf disease classification demonstrate the need for a comprehensive and robust framework for labeling leaf diseases in given leaf samples. according to the available literature, only a few models can accurately identify leaf diseases. the pre-trained yolo model is one of the most effective leaf disease detection methods in ssd. there are numerous versions and updates of the yolo framework. this work compares the architectures, features, and prediction efficiency of yolo v4 and yolo v7 in the context of leaf disease prediction. 4. yolo v4 in the classification of plant leaf disease the study of cv algorithms reveals the use of numerous versions of yolo, such as yolov2, yolov3, yolov4, agbioforum, 25(1), 2023 | 62 xinming, hong, mohd ariffin, ismail. — comparative study on leaf disease identification using yolo v4 and yolo v7 algorithm yolov7, etc. the construction of many residual network modules that support multi-scale prediction is a key factor that has made the pre-trained yolo models more successful than other dl-based cv models. this significantly improves the accuracy of predictions. this study contrasts two successful yolo versions, yolov4 and yolov7, for classifying the detection of plant leaf diseases. the rgb images of multiple plant foliage of different species with various diseases are input to the models. each image is partitioned into s x s grids. as prediction metrics, the yolo models utilize confidence scores. the score of confidence for a sound leaf will be returned as 0. in the case of diseased leaves, the predicted confidence score is calculated using the intersection over union (iou) between the prediction bounding box and the ground truth. this ssd algorithm employs multiple 3 x 3 and 1 x 1 convolution layers to extract leaf image features. the principal components of yolo are the backbone network and the cranium and neck. the proposed yolov4 model utilizes the cross stage partial darknet53 to extract important image features. this serves as a feature extractor because it consists of convolutional and csp blocks. these blocks divide the feature maps and then converge them cross-phase. this enables the propagation of important information as gradients. fig. 8 depicts the configuration details of yolo version 4. fig 8: configuration details of yolov4 figure 9 depicts the yolo architecture for classifying leaf diseases. as part of dimensionality reduction, a maxpooling layer is added following every convolution backnorm and leaky relu (cbl) block. each cross stage partial (csp) is joined at both extremities to a csp block. the path aggregation network (panet) serves as the model's spine. in addition, the model employs spatial pyramid pooling (spp), which is responsible for compressing the input derived from multiple convolution layers to produce feature maps with identical dimensions. this improves the model's robustness as it can manage images with dimensions greater than (w, h)= (180, 224) and images with arbitrary scaling. the panet in yolov4 combined the bottom-up and topdown trajectories of feature vectors to preserve semantic information in the feature maps (sarkar & johnson, 2022). this improves instance-based segmentation while simultaneously preserving contextual and spatial information. this information is crucial for disease identification in leaves, as healthy and infected regions are nearby within a small area. this work utilizes yolo v4 with 26 x 26 and 13 13 feature maps. fig 9: yolov4 model to predict the leaf disease agbioforum, 25(1), 2023 | 63 xinming, hong, mohd ariffin, ismail. — comparative study on leaf disease identification using yolo v4 and yolo v7 algorithm 5. yolo v7 in the classification of plant leaf diseases yolo v7 is used to classify plant leaf disease from healthy leaves by drawing bounding outlines. figure 9 depicts the entire yolo architecture for plant leaf disease detection and classification. the deployed model draws prominent bounding outlines around infected regions with greater precision and speed. the following are notable features of yolo v7: • yolov7 uses the concept of bag-of-freebies methods for object detection. • the dynamic label assignment is a distinguishing feature of yolov7, which has specialized reparameterized modules for achieving this. • the model follows extended and compound scaling to finetune the parameters. fig 10: yolo v7 architecture for plant leaf disease classification the yolov7 architecture utilizes extended efficient layer aggregation networks (e-elan) to stabilize the model. regardless of the gradient path length, the leaf images are processed by layering computational blocks vertically. the e-elan uses the expand-shuffle-merge cardinality functions to enhance learning without altering the gradient path. to execute these operations, the convolutions are grouped to increase the number of channels and the cardinality of the blocks. universally, the same quantity of group parameters and channel multiplier is applied to all computational units. the feature maps are shuffled into 'g' groups based on the specified group parameter, then concatenated to preserve their originality. using the merge cardinality function, the clusters of feature maps are then instructed to learn unique features. this model scales the model to modify the image's resolution, depth, stage, and width. yolov7 employs network architecture search (nas) that iterates through image parameters to converge on the optimal scaling factors, as opposed to the compound model scaling, to maintain depth and width coherence. the compound scaling process is depicted in figure 11. fig 11: compound model scaling in yolov7 (wang, bochkovskiy, & liao, 2022) agbioforum, 25(1), 2023 | 64 xinming, hong, mohd ariffin, ismail. — comparative study on leaf disease identification using yolo v4 and yolo v7 algorithm the yolov7 architecture uses extended efficient layer aggregation networks (e-elan) to ensure the stability of the model. regardless of the gradient path length, leaf images are processed by vertically stacking computational blocks. the e-elan employs the expand-shuffle-merge cardinality functions to improve learning without modifying the gradient path. in order to carry out these operations, the convolutions are grouped to increase the number of channels and cardinality of the blocks. the same number of group parameters and channel multiplier is applied universally to all computational units. the feature maps are shuffled into 'g' groups based on the group parameter, then concatenated to preserve their uniqueness. the feature map clusters are then instructed to learn unique features using the merge cardinality function. this model adjusts the image's resolution, depth, stage, and breadth by scaling the model. in order to maintain depth and width coherence, yolov7 employs network architecture search (nas) that iterates through image parameters to converge on the optimal scaling factors, as opposed to the compound model scaling. the process of compound scaling is depicted in figure 11. predicting the bounding boxes the yolo models employed in this work deploy the complete intersection over union (ciou) loss to optimize the bounding box prediction. the confidence score (cj i) of the jth bounding box in the ith grid is given in equ 1: ci j =ai, j*iou (1) the leaf is denoted as ai,j, while iou is the union between the predicted and actual bounding boxes. the total loss (ltotal) in these models is computed as the accumulation of three major loss functions: loss in classification (lcla), loss in regression loss ( lreg), and loss in confidence (lconf), and it is mentioned in equ 2. loss = lbox + lobj + lcls (2) 6. experimental analysis the models are validated using the plant village dataset, which comprises 54,305 high-resolution images of 14 plant species afflicted with 26 diseases (hughes & salathé, 2015). the dataset is comprised of both training and testing subsets. table 1 summarizes the classes, plants, and diseases with testing and training data. table 1: summary statistics of plant village dataset crop disease training images testing images crop disease training images testing images apple apple cab 504 126 apple black rot 496 125 apple cedar apple rust 220 5 apple healthy 1316 329 blueberry healthy 1202 300 cherry healthy 684 170 cherry powdery mildew 842 210 corn cercospora leaf spot 410 103 corn common rust 953 239 corn healthy 929 233 corn northern leaf blight 788 197 grape black rot 944 236 grape esca 1107 276 grape healthy 339 84 grape leaf blight 861 215 orange haunglongbing 4405 1102 peach bacterial spot 1838 459 peach healthy 288 72 pepper bell bacterial spot 797 200 pepper bell healthy 1183 295 potato early blight 800 200 potato healthy 121 31 potato late blights 800 200 raspberry healthy 297 74 soybean healthy 4072 1018 squash powdery mildew 1468 367 strawberry healthy 364 92 strawberry leaf scorch 887 222 tomato bacterial spot 1702 425 tomato early blight 800 200 tomato healthy 1273 318 tomato late blight 1527 382 tomato leaf mold 761 191 tomato septoria leaf spot 1417 354 tomato spider mites 1341 335 tomato target spot 1123 281 tomato mosaic virus 299 74 tomato yellow curls 4286 1071 the input image dimensions are 224 by 224, and the learning rate for both models is 0.001. the epochs were limited to 3000, with a weight decay rate of 0.00005 and a momentum decay rate of 0.90. table 2 compares yolov4 and yolov7 on the coco benchmark dataset. table 2: comparison of yolo v4 and yolo v7 model no of parameters flops size average precision average precision on 50% iou average precision on 75% iou yolo v4 64.4m 142.8g 640 49.7 68.2 54.3 yolo v7 36.9m 104.7g 640 51.2 69.7 55.5 fig 12 and 13 shows a few sample plant leaf disease classification using yolo v4 and yolo v7 models. the annotations and the confidence score of both models are equivalent and are competitive with each other. the real comparison can be made by assessing other classification metrics. fig 12: plant leaf disease classification using yolov4 agbioforum, 25(1), 2023 | 65 xinming, hong, mohd ariffin, ismail. — comparative study on leaf disease identification using yolo v4 and yolo v7 algorithm fig 13: plant leaf disease classification using yolov7 the confidence score is the likelihood (pr) that the bounding box has a leaf and is computed using equ 3. box confidence=pr (object) * iou ( truth predict ) (3) iou is estimated as the proportion of intersection and union of predicted and ground truth bounding boxes. the calculation iou is done according to equation (4). (4) each grid cell in the leaf image is assigned the value 1 as conditional class probability, pr(class| object), which indicates the likelihood of the leaf class. the confidence score is computed as equ 5. class confidence= box confidence * pr (class | object) (5) accuracy verified the efficacy of the models, mean average precision (map), precision, and recall as given in equations (6) to (9). precision= true_positives true_positives+false_positives (6) recall= true_positives true_positives+false_negatives (7) f1 score= 2 * precision * recall precision+recall (8) map= 1 𝐶 ∑ 𝑇𝑟𝑢𝑒_𝑃𝑜𝑠𝑖𝑡𝑖𝑣𝑒𝑠 𝐹𝑎𝑙𝑠𝑒_𝑃𝑜𝑠𝑖𝑡𝑖𝑣𝑒𝑠 + 𝑇𝑟𝑢𝑒_𝑃𝑜𝑠𝑖𝑡𝑖𝑣𝑒𝑠 𝑐 𝜖 𝑐𝑙𝑎𝑠𝑠𝑒𝑠 (9) the performance comparison between yolo v4 and yolov7 is given in table 3. it can be seen that the yolov7 has better values of precision, f1-score, recall, and map than yolo v4. the yolov7 model performs better as it can dynamically allocate the classes, quintessential in datasets with more classes, such as plant; leaf disease classification. the yolov4 could not perform well because it could not train well on dynamic classes, a distinguishing feature of yolov7. table 3: performance comparison of different models model precision recall f1-score map yolo v4 0.74 0.621 0.703 0.786 yolo v7 0.82 0.78 0.80 0.822 thus this study indicates that recent versions of yolo are showing more advancements, from forming feature maps to adding more powerful layers. 7. conclusions and future works this study compares the performance of two prominent object detection and classification models, yolo v4 and yolo v7, in detecting diverse leaf diseases. the performance comparison reveals that both architectures have a competitive edge, but yolov7's compound scaling and dynamic labeling provide superior performance. in addition, e-elan, reparameterization, and model scaling for drawing adaptive bounding boxes have significantly increased the model's predictive power and localization capability. yolo v4 should not be viewed as a suppressive model. classification of plant leaf diseases is facilitated by its panet-learned features with adaptive bounding boxes. nonetheless, yolov7 outperforms yolov4, as the former performs better across all classification metrics. in addition, yolov7 is more robust in isolating diseased leaf regions from healthy leaf regions with varying resolutions, scales, growth cycles, and environmental conditions. as future extensions, models could be constructed to output the infection stage and extent of the plant leaf so that producers are well-informed about the plant's health and can take corrective measures. references alexandratos, n., & bruinsma, j. 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(2022) reported that by controlling the waste, the hotel industry can contribute to the green environment. elshaer et al. (2022) concluded that the management should work on green practices to achieve sustainability in a green way. sobaih et al. (2020) emphasized green management practices to influence the employees for their green behavior according to the organizational working. furthermore, hameed et al. (2022) concluded that the sustainability of the green environment is possible when reasonable actions are taken to entertain the public. moreover, shao et al. (2022) asserted that green innovation is a way forward to achieve green sustainability in any industry. suliman et al. (2023) reported that the lack of green working behavior and environment has become challenging for organizations to achieve the green working approach sustainably. accordingly, gharbi et al. (2022) concluded that in the absence of green employees’ behavior, green achievements can’t be taken in the hotel industry. although these studies have contributed a lot to enhance the literature, there is a gap in the body of knowledge. based on the theoretical and partial gap in knowledge, the study's purpose is to determine the green creativity (gc) among luxury hotels in saudi arabia concerning the role of green organizational culture, self-efficacy, environmental orientation, and green work engagement mailto:mbhatti@kfu.edu.sa agbioforum, 24(3), 2022 | 76 bhatti. — green creativity among luxury hotels of saudi arabia: role of green organizational culture, self-efficacy… (gwe). this study has developed a unique model new in the literature. the dimensions of gc developed in this research model weren’t reported in the models of previous research works. furthermore, the gc -related theoretical implications of this research are reliable to improve the body of knowledge in a significant way. furthermore, the findings of this research are practicable to improve gc among luxury hotels in saudi arabia. in the final section, the study has demonstrated some future directions critical for academics to work further on gc in the context of the hotel industry. 2. literature review modern businesses practice requires green management and innovation. the sustainability of the environment is possible when green strategies are developed and implemented successfully (aboramadan et al., 2021). the sustainability of the environment is possible to take strategic actions for green working. the available resources and the external environment have a significant influence of achieve sustainability. modern industry practices are shifting towards the green environmental behavior that is necessary for taking strategic actions (mohammed et al., 2022). the availability of green resources is reliable to ensure that the green practices of the organizations are implemented strategically. the employee's engagement in green working behavior can’t be neglected in modern times. employees who are self motivated to take strategic actions for green stability based on their environmental knowledge are more suitable to the working culture of the organizations (elshaer et al., 2022). the availability of these employees and their working practices according to the organization's culture. indeed, there are different kinds of barriers that are restricting employees to have green behavior in their work. strategic actions on time are required to improve the efficacy of the employees in relationship with their environmental behavior (sobaih et al., 2020). more strategic actions are required to ensure the stability of the environment with green behavior. the less productive employees have little work engagement in a green way, and these employees are limiting the creativity of the other employees as well. organizational management is required to be improved over time, and strategic actions are required to be taken timely for green employee management (shao et al., 2022). industrial growth toward the green environment is only possible when strategic actions are taken to improve the performance of the employees. the reliability of the environmental sources and green working behavior is required to be improved over time for green working practices of the employees (hameed et al., 2022). creativity in the hotel industry is required to be managed on time with the performance of employees (xu et al., 2022). those employees who have environmental knowledge, seek further work to improve their performance. the reliability of the employee’s performance in a creative way can be a way forward to improve their strategic performance. innovation is required in every industry in modern times, and strategic actions are required to be taken for green performance (ari et al., 2020). when a large sector of industry in any country failed to manage the goals of sustainability, it has become a challenge for the management. environmental policies are required to be regulated by the hotel industry because of its rapid growth (fu et al., 2022). a system of checks should be developed to be implemented in the hotel industry for taking strategic actions. the availability of resources for strategic actions is required to be managed on time for reliable opportunities and strategic actions (salem et al., 2023). the available resources to the employees and management in the hotel industry can be used fairly to get the advantage strategically. less attention paid to sustainable development can be a way forward to work toward sustainable development goals (bani melhem et al., 2022). the harshness of the employees and their rejection to adopt the innovation in the working environment can become a problem to successfully implementing the strategies of innovation in the same way. furthermore, the sustainable development process in any industry is possible when the management and the employees are working in the same direction to achieve their strategic goals in a significant way (abuelhassan et al., 2020). the organizational policies for gc and the fair implementation of these policies can be a strategic way to improve the performance of employees regarding their values working towards sustainability. less attention towards gc can reduce the performance of the employees, and they develop a little level of work engagement (abolnasser et al., 2023). in such kinds of situations, the motivation towards the employees is required to be managed accordingly for providing them with reliable facilities to enhance their work. the available resources for the employees should be managed on time with strategic actions in the way of gc. knowledge about the external environment is necessary to influence the employees for their green behavior. unless the employees are not self-motivated, they can’t work in a better way to improve their efficacy in the environment (al-hawari et al., 2021). the available resources for the environment are recurred to be managed on time, and strategic actions are required to be taken on time. the green working culture of the organization is developed when the management is training the employees to have greenness and sustainability in their work (abualigah et al., 2022). no doubt, the culture of green innovation and green performance can be improved in a positive way when reliable actions are required to get the green work. the internal culture and environment of the organizations can be a better way of training the employees (suliman et al., 2023). the workshops on the implications of green culture in other industries should be conducted for the employees to make sure that they are learning appropriately to achieve green working behavior in their organizational practices. the green organizational behavior of the employees is required to be improved over agbioforum, 24(3), 2022 | 77 bhatti. — green creativity among luxury hotels of saudi arabia: role of green organizational culture, self-efficacy… time, and strategic actions are required to be taken for their working approach (gharbi et al., 2022). however, the implementation of green working behavior in the organizational culture should be based on different stages to improve the organizational behavior positively. the working methodology to enhance the green culture can be the best strategy to implement green behavior. when the top management supports the middle management to get the green practice workable, the performance of the frontline employees is also increased due to these strategies (abdou et al., 2022). many organizations in copenhagen have achieved suitability in their work by modifying the green external environment in line with the green internal environment (song et al., 2023). therefore, the importance of a green external environment is reported by the existing studies in the literature. figure 1 displays the conceptual framework of this research. h1: green work engagement mediates the relationship green organizational culture a. industry macro culture b. organizational barriers c. cultural fragmentation d. symbolic events green self efficacy internal environmental orientation external environmental orientation figure 1: conceptual framework 3. methodology this research is initiated to measure the gc among luxury hotels in saudi arabia. the data used in this research is primary for analysis and empirical findings. a likert scale questionnaire based on 7-points was considered by taking scale items from existing studies. the items are adapted from existing studies available in the literature. the description of measurements and source studies is available in table 1. the respondents of this research were the employees in the management of luxury hotels in saudi arabia. however, the cross-sectional method is used for data collection. the respondents were considered with a printed questionnaire after taking the prior appointment. the data collection is done from the respondents of 20 luxury hotels across saudi arabia. 400 questionnaires were administrated for data collection and the successful response is collected back only on 328 questionnaires. furthermore, the data available on 12 questionnaires were biased by the respondents. therefore, between industry macro culture and green creativity. h2: green work engagement mediates the relationship between organizational barriers and green creativity. h3: green work engagement mediates the relationship between cultural fragmentation and green creativity. h4: green work engagement mediates the relationship between symbolic events and green creativity. h5: green work engagement mediates the relationship between green self-efficacy and green creativity. h6: green work engagement mediates the relationship between internal environmental orientation and green creativity. h7: green work engagement mediates the relationship between external environmental orientation and green creativity. these 12 responses were eliminated from the final response, and 316 responses are considered the final sample size of this research. furthermore, the smart pls 3.0 is employed for the data analysis to test the data normality, convergent validity, discriminant validity, and structural equation modeling findings. the collected data is unpacked to test the data normality. there were no missing values in the data set. furthermore, the data normality is tested with skewness and kurtosis findings. the skewness reported less than +1 is normal. similarly, kurtosis of more than -1 is normal. these skewness and kurtosis are highlighted by (royston, 1992). hence, the data set for this research has no missing values and normality in distribution. the validity of the data is tested with a convergent validity test using smart pls calculation. the pls algorithm calculator is used to test the factor loadings initially, and the factor loadings more than 0.60 confirm the validity of the green work engagement green creativity among luxury hotels of saudi arabia agbioforum, 24(3), 2022 | 78 bhatti. — green creativity among luxury hotels of saudi arabia: role of green organizational culture, self-efficacy… data (shevlin et al., 1998). furthermore, the validity is also tested with cronbach alpha, and the values above 0.70 are acceptable for cronbach alpha (tavakol et al., 2011). moreover, the reliability of the study is tested with composite reliability findings, and findings above 0.7 confirm it (raykov, 1997). finally, if the average variance extracted is above 0.50, it confirms the validity of the findings (valentini et al., 2016). the results reported in table 3 confirm the convergent validity of the collected data. table 1: measurements the calculation of discriminant validity is useful to check the degree of difference between items that are used to measure a single construct. heteritrait-monotrait is a considerable method to check the discriminant validity. however, this method of discriminant validity confirms the findings of discrimination when the values are less than 0.90 (gold et al., 2001). the data available shown in table 4 confirms that the study has achieved discriminant validity. "constructs measurements source industry macro culture environmental values are placed at a high priority within the industry group to which my organization belongs. aggarwal et al. (2021) in my industry, environmental/green values are a part of all company activities and decision across all firms. all firms in the industry group to which my organization belongs share common trends with respect to environmental issues, like laws on emissions, in contrast with other industries. organizational barriers i believe that the internal processes in my organization are supportive of pro-environmental initiatives. aggarwal et al. (2021) in my organization, any manager who is identified as a greenie (pro-environmental change agent) is marginalized/isolated due to internal politics. i believe that my organization is not supportive of the managers who try to promote green agenda. cultural fragmentation in my organization, development of organization-wide environmental values is difficult because there are cultural differences between the departments. aggarwal et al. (2021) in my organization, importance of green values varies from one department to another based on professional specialization and background (e.g., accounts department has low focus on green values; csr/marketing department has high focus on green values) environmental values are not equally emphasized across all the offices (location) of my organization due to their physical/geographical separation (e.g., higher focus in corporate office when compared to regional offices). symbolic events the managers in my organization speak positively about green practices of the firm even during informal interactions over lunch or tea. aggarwal et al. (2021) my organization ignores the criticisms of the general public, relating to the emissions/effluents arising from my company. my organization sincerely develops environmental initiatives and practices to deal with public criticism, relating to the emissions/effluents from my company. green self efficacy we feel we can succeed in accomplishing environmental ideas. chen et al. (2014) we can achieve most of the environmental goals. we can perform effectively on environmental missions. we can overcome environmental problems. we could find out creative solutions to environmental problems. internal environmental orientation our firm exerts concerted efforts to allow each employee to understand the importance of environmental preservation. ozgul (2022) our firm has clear policy statements urging environmental awareness in all areas of operation. our firm members highly value environmental preservation. environmental preservation is a central corporate value of our firm. external environmental orientation the developments in the natural environment affect our firm’s business activities. ozgul (2022) the financial well-being of our firm depends on the state of the natural environment. environmental preservation is vital to our firm’s survival. various external stakeholders expect our firm to preserve the environment. green work engagement my environmental related tasks inspire me. schaufeli et al. (2006) i am proud of the environmental work that i do. i am immersed in my environmental work. i am enthusiastic about my environmental tasks at my job. i feel happy when i am working intensely on environmental tasks. with environmental tasks at my job, i feel bursting with energy. green creativity the members of the organization suggest news ways to achieve environmental goals. chen et al. (2013) the members of the organizations propose new green ideas to improve environmental performance. the members of the organization promote and champion new green ideas to others. the members of the organization develop adequate plans for the implementation of new green ideas. the members of the organization would rethink new green ideas. the members of the organizations would find out creative solutions to environmental problems.” agbioforum, 24(3), 2022 | 79 bhatti. — green creativity among luxury hotels of saudi arabia: role of green organizational culture, self-efficacy… table 2: data normality items missing mean median min max standard deviation excess kurtosis skewness imc1 0 3.269 3 1 7 1.482 -0.341 0.103 imc2 0 3.251 3 1 7 1.802 -0.550 0.467 imc3 0 3.534 3 1 7 1.853 -0.736 0.328 ob1 0 3.471 3 1 7 1.898 -0.784 0.394 ob2 0 3.529 3 1 7 1.691 -0.396 0.316 ob3 0 3.489 4 1 7 1.797 -0.660 0.261 cf1 0 3.493 4 1 7 1.829 -0.849 0.177 cf2 0 3.668 4 1 7 1.841 -0.747 0.197 cf3 0 3.691 3 1 7 1.858 -0.742 0.311 se1 0 3.677 3 1 7 1.893 -0.701 0.376 se2 0 3.561 3 1 7 1.857 -0.656 0.397 se3 0 3.552 3 1 7 1.821 -0.565 0.365 gse1 0 3.574 3 1 7 1.892 -0.745 0.352 gse2 0 3.453 3 1 7 1.761 -0.458 0.426 gse3 0 3.534 4 1 7 1.889 -0.849 0.237 gse4 0 3.457 3 1 7 1.781 -0.592 0.301 gse5 0 3.664 4 1 7 1.736 -0.540 0.274 ieo1 0 3.054 3 1 7 1.478 -0.059 0.636 ieo2 0 3.175 3 1 7 1.495 0.536 0.906 ieo3 0 3.224 3 1 7 1.437 0.864 0.951 ieo4 0 3.143 3 1 7 1.46 0.465 0.776 eeo1 0 3.108 3 1 7 1.388 0.561 0.698 eeo2 0 3.188 3 1 7 1.515 0.307 0.712 eeo3 0 3.139 3 1 7 1.462 0.543 0.840 eeo4 0 3.004 3 1 7 1.425 -0.196 0.460 gwe1 0 3.184 3 1 7 1.355 0.539 0.696 gwe2 0 3.085 3 1 7 1.454 0.163 0.653 gwe3 0 3.081 3 1 7 1.489 0.236 0.706 gwe4 0 3.197 3 1 7 1.413 -0.115 0.539 gwe5 0 3.143 3 1 7 1.365 0.271 0.590 gwe6 0 3.018 3 1 7 1.343 -0.134 0.572 gc1 0 3.139 3 1 7 1.303 0.397 0.621 gc2 0 3.126 3 1 7 1.421 -0.015 0.711 gc3 0 3.166 3 1 7 1.419 0.205 0.709 gc4 0 3.202 3 1 7 1.319 0.380 0.733 gc5 0 3.220 4 1 7 1.616 -0.696 0.217 gc6 0 3.206 3 1 7 1.729 -0.713 0.360 imc = industry macro culture, ob = organizational barriers, cf = culture fragmentation, se = symbolic events, gse = green self-efficacy, ieo = internal environmental orientation, eeo = external environmental orientation, gwe = green work engagement, gc = green creativity the structural equation model findings are used to confirm the findings of paths. the p values less than 0.05 are acceptable in structural equation modeling (ramayah et al., 2018). h1 confirmed that gwe mediates the relationship between imc and gc (p = 0). h2 failed to confirm that gwe mediates the relationship between organizational barriers and gc (p = 0.839). h3 confirmed that gwe mediates the relationship between cultural fragmentation and gc (p = 0). h4 failed to confirm that gwe mediates the relationship between symbolic events and gc (p = 0.203). h5 confirmed that gwe mediates the relationship between green self-efficacy and gc (p = 0). h6 confirmed that gwe mediates the relationship between ieo and gc (p = 0). h7 confirmed that gwe mediates the relationship between eeo and gc (p = 0). the results of this test are highlighted in table 5. 4. discussion firstly, it is empirically confirmed that gwe mediates the relationship between imc and gc. accordingly, the study al hawari et al. (2021) reported that the employee's work engagement in line with the industry culture is the best strategy for gc. furthermore, al‐ghazali et al. (2021) reported that when employees are less motivated to improve their work, strategic actions are required to improve their understanding of the organizational culture to influence their work. however, sobaih et al. (2020) concluded that a better working approach of the employees can help them to achieve green sustainability in the culture of any organization. secondly, it is empirically confirmed that gwe doesn’t mediate the relationship between organizational barriers and gc. thirdly, it is empirically confirmed that gwe mediates the relationship between cultural fragmentation and gc. furthermore, suliman et al. (2023) reported that the impact of culture is critical for the engagement of the employees. shao et al. (2022) also highlighted that the organizational culture should be developed in a positive way to take strategic actions that are required for the sustainability of the organization. abdou et al. (2022) reported that organizational culture improvement is necessary to achieve the sustainability of gc with the role of employees. fourthly, it is empirically confirmed that gwe doesn’t mediate the relationship between symbolic events and gc. fifthly, it is empirically confirmed that gwe mediates the relationship between green self-efficacy and gc. according to hameed et al. (2022), mostly in the hotel and tourism business sector, innovation is necessary to timely control service quality. gharbi et al. (2022) reported professionals who are knowledgeable about the agbioforum, 24(3), 2022 | 80 bhatti. — green creativity among luxury hotels of saudi arabia: role of green organizational culture, self-efficacy… surroundings look for more work to enhance their performance. elshaer et al. (2022) reported the consistency of an appraisal system in a humorous way might be a step in the right direction to enhance their company's effectiveness. mohammed et al. (2022) reported innovation is necessary across all industries, and deliberate table 3: convergent validity initiatives must be done to achieve green success. it has become difficult for management to manage environmental targets when a significant section of an economy fails to do so. due to their rapid expansion, environmental policies must be controlled for the hotel business. items factor loadings cronbach's alpha rho_a composite reliability average variance extracted cf1 0.921 0.903 0.906 0.939 0.838 cf2 0.912 cf3 0.912 eeo1 0.926 0.941 0.942 0.958 0.850 eeo2 0.930 eeo3 0.938 eeo4 0.893 gc1 0.886 0.923 0.932 0.940 0.725 gc2 0.904 gc3 0.895 gc4 0.892 gc5 0.766 gc6 0.753 gse1 0.891 0.943 0.945 0.956 0.815 gse2 0.901 gse3 0.917 gse4 0.904 gse5 0.899 gwe1 0.877 0.943 0.943 0.955 0.779 gwe2 0.896 gwe3 0.862 gwe4 0.910 gwe5 0.873 gwe6 0.878 ieo1 0.885 0.927 0.928 0.948 0.821 ieo2 0.915 ieo3 0.914 ieo4 0.910 imc1 0.932 0.913 0.923 0.945 0.851 imc2 0.917 imc3 0.919 ob1 0.886 0.907 0.907 0.942 0.844 ob2 0.931 ob3 0.938 se1 0.942 0.915 0.915 0.946 0.855 se2 0.934 se3 0.897 imc = industry macro culture, ob = organizational barriers, cf = culture fragmentation, se = symbolic events, gse = green self-efficacy, ieo = internal environmental orientation, eeo = external environmental orientation, gwe = green work engagement, gc = green creativity table 4: discriminant validity constructs cf eeo gc gse gwe ieo imc ob cf eeo 0.699 gc 0.697 0.758 gse 0.654 0.665 0.671 gwe 0.639 0.661 0.689 0.622 ieo 0.696 0.674 0.682 0.665 0.694 imc 0.685 0.717 0.700 0.759 0.659 0.704 ob 0.621 0.759 0.740 0.669 0.697 0.740 0.784 se 0.617 0.682 0.696 0.686 0.643 0.677 0.768 0.776 imc = industry macro culture, ob = organizational barriers, cf = culture fragmentation, se = symbolic events, gse = green self-efficacy, ieo = internal environmental orientation, eeo = external environmental orientation, gwe = green work engagement, gc = green creativity table 5: structural equation modeling hypotheses original sample sample mean standard deviation t statistics p values imc -> gwe -> gc 0.629 0.632 0.061 10.371 0 ob -> gwe -> gc 0.015 0.011 0.071 0.204 0.839 cf -> gwe -> gc 0.927 0.928 0.208 4.456 0 se -> gwe -> gc 0.080 0.083 0.062 1.275 0.203 gse -> gwe -> gc 0.356 0.352 0.064 5.515 0 ieo -> gwe -> gc 0.583 0.586 0.056 10.348 0 eeo -> gwe -> gc 0.330 0.326 0.060 5.472 0 agbioforum, 24(3), 2022 | 81 bhatti. — green creativity among luxury hotels of saudi arabia: role of green organizational culture, self-efficacy… imc = industry macro culture, ob = organizational barriers, cf = culture fragmentation, se = symbolic events, gse = green self-efficacy, ieo = internal environmental orientation, eeo = external environmental orientation, gwe = green work engagement, gc = green creativity sixthly, it is empirically confirmed that gwe mediates the relationship between ieo and gc. aboramadan et al. (2021) concluded that the internal environment of the organization is necessary to manage the employee's performance enhancement. when the employees’ performance is according to the modern standard of innovation, they would contribute significantly to the growth of the organization. furthermore, (abualigah et al., 2022) determined that the employees are required to be efficient with their work towards the management to significantly improve the organizational performance for innovation. seventhly, it is empirically confirmed that gwe mediates the relationship between eeo and gc. bhatti et al. (2022) demonstrated that the influence of the external environment and its understanding is necessary for the employees to improve their performance critically. accordingly, alyahya et al. (2023) reported that learning from the external environment can be the best strategy for the employees to get into new things and improve their performance in the way of gc. hence, the relationships developed by this research are significantly important and reliable in the body of knowledge. 5. implications the conceptual model of this research is a major contribution to the body of knowledge. the study has introduced empirically tested mediating relationships in the knowledge. the research contributes that gwe mediates the relationship between imc and gc. furthermore, this research contributes to gwe and mediates the relationship between cultural fragmentation and gc. accordingly, this research contributes to gwe and mediates the relationship between green self-efficacy and gc. moreover, this research contributes gwe mediates the relationship between ieo and gc. finally, this research contributes gwe mediates the relationship between eeo and gc. the management of hotel luxury hotels in saudi arabia and across the world can develop an imc to achieve gc in the presence of green working engagement. furthermore, the practitioners can develop cultural fragmentation to achieve gc in the presence of green working engagement. accordingly, hotel management in saudi arabia can develop green self-efficacy to achieve gc in the presence of green working engagement. finally, the management of hotels can develop an internal and eeo to achieve gc while having gwe behavior. these practices can be used in the hotel industry of other countries are well. 6. limitations and future research directions this study has limitations as it has introduced the mediating variable of gwe only. however, multiple other factors can influence the relationships in this model easily. the academics are motivated to test the moderating impact of government policies on the hotel industry in this model to determine its effect on gc. furthermore, the respondents of this research are limited to the main cities of saudi arabia only. however, academics are motivated to collect data from other regions to determine the validity of these research findings. hence, the limitations of this research would be filled by academics in the future. 7. acknowledgment this work was supported by the deanship of scientific research, vice presidency for graduate studies and scientific research, king faisal university, saudi arabia [grant2753]. references abdou, a. h., hassan, t. h., salem, a. e., albakhit, a. i., almakhayitah, m. y., & salama, w. 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(2022). the role of csr for de carbonization of hospitality sector through employees: a leadership perspective. sustainability, 14(9), 5365. doi: https://doi.org/10.3390/su14095365 https://doi.org/10.1108/ijchm-02-2022-0229 https://doi.org/10.1177/0013164405282471 https://doi.org/10.3390/su14106273 https://doi.org/10.1016/s0191-8869(98)00055-5 https://doi.org/10.3390/su122410371 https://doi.org/10.1002/csr.2459 https://doi.org/10.3390/su15032690 https://doi.org/10.5116%2fijme.4dfb.8dfd http://www.revistaptp.unb.br/index.php/ptp https://doi.org/10.3390/su14095365 1. introduction 2. literature review 3. methodology 4. discussion 5. implications 6. limitations and future research directions 7. acknowledgment references agbioforum, 24(3): 8-24. ©2019 agbioforum climate change and its effects on agricultural factors: a bibliometric analysis and review nurhayati universitas islam sumatera utara, medan, indonesia email: nurhayati@uisu.ac.id zuhdi yahya universitas 17 agustus samarinda, east kalimantan, indonesia email: zuhdiyahya64@gmail.com wan arfiani barus universitas muhammadiyah sumatera utara, medan, indonesia email: wanarfianibarus@umsu.ac.id r. sabrina universitas muhammadiyah sumatera utara, medan, indonesia email: r.sabrina@umsu.ac.id basyaruddin universitas islam sumatera utara, medan, indonesia email: basyaruddin1959@gmail.com darmansyah siregar universitas medan area, medan, indonesia email: sdbro1975@gmail.com bustanul arifin dalimunthe dinas pertanian padang sidimpuan, medan, indonesia email: bustanularifindalimunthe@gmail.com try koryati universitas amir hamzah, medan, indonesia email: trykoryati@unhamzah.ac.id idris anwar politeknik pembangunan pertanian gowa, south sulawesi, indonesia email: idrisstpp@gmail.com regarding food, agricultural productivity, and crop output, climate change is an unavoidable problem and concern that affects the entire planet. in the past ten years, climate change has profoundly affected various abiotic and biotic aspects linked to plants. in light of this, the current study provides a bibliometric and thematic overview of research in this field. wos is used to search for the current study, and 29 publications published between 2013 and 2021 were utilized to complete the review. most research in this field has been undertaken during the previous three years, focuses equally on all three themes (biotic, abiotic, and food security), and employs both qualitative and review methodologies. to boost the sustainability and sustenance of food crops and the agricultural sector, more quantitative and experimental research is needed to mitigate the effects of climate change. key words: climate change, agriculture, plants, bibliometric analysis. 1. introduction the magnitude of climate change is intensifying. a disparity between incoming and outgoing rays in the environment causes climate change. climate change affects every region of the world we live. however, the effects of climate change are not consistent across the country and the globe. various communities or individuals within a city may suffer different effects (administration, 2021). global warming is currently affecting public health. when meteorological and climatic trends shift, human life is at risk. temperature ranks among the most lethal climatic situations (service, 2022). climate change influences the way of life throughout the world. it impacts plants and animals and has ramifications for the extinction of some species. in a variety of harmful ways, global warming affects people. climate change causes community displacement, an increase in disease and mortality, and water and food insecurity (heshmati, 2022). global warming significantly impacts ecology, habitat, and quality of life. it has a global influence and is linked to changes in the planet's natural environment (ahima, 2020; hsiang et al., 2018; raza et al., 2019). adapting to the effects of global warming and limiting its escalation are the general society's principal challenges. particularly with underrepresented communities, the government must employ tailored techniques (ahima, 2020). throughout history, climate change has impacted the surface of the globe. the planet's environment is badly influenced by global warming in several ways. it affects the magnitude of extreme occurrences and the intensity of catastrophes (brando et al., 2020; sobrino et al., 2020). effects of climate change on human health and well-being include more frequent and intense tropical storms, wildfires, deteriorating air circulation, and diseases transmitted by insects, foods, and water. it is anticipated that climatic disturbances to agricultural production will worsen throughout this century, a trend that could weaken the stability of food production. it is becoming increasingly challenging for habitats such as forests, coastlines, and marshes to buffer the consequences of mailto:nurhayati@uisu.ac.id mailto:zuhdiyahya64@gmail.com mailto:wanarfianibarus@umsu.ac.id mailto:r.sabrina@umsu.ac.id mailto:basyaruddin1959@gmail.com mailto:sdbro1975@gmail.com mailto:bustanularifindalimunthe@gmail.com mailto:trykoryati@unhamzah.ac.id mailto:idrisstpp@gmail.com agbioforum, 24(3), 2022 | 9 nurhayati, yahya, barus, sabrina, basyaruddin, siregar, dalimunthe, koryati, and anwar. climate change and its effects on agricultural ... natural disasters such as wildfires, flooding, and intense storms. in addition to other pressures, such as overfishing and pollution, changes in the sea's composition and global temperatures are affecting oceanic food security and damaging fish populations (change.gov). the effects of climate change on the agriculture system are depicted in figure 1. figure 1. changing climate impacts on agriculture among the most critical challenges of our day is climate change, which has dramatically impacted or is still affecting the habitats of the globe. even while the planet has always suffered some degree of climate change, the rate of this variability has accelerated during the past century (arora, 2019). due to the ever-increasing need for food resulting from the nation's population expansion, effective agricultural practices have been developed, such as the excessive use of pesticides, the production of animals (for meat and other types of revenue), and the manipulation of water. changes in precipitation, temperature, atmospheric carbon fertilization, and weather patterns are anticipated to have a considerable impact on agricultural operations due to climate change. in addition, the agricultural sector is under additional strain due to the rapid growth of the population, the depletion of productive land, and inadequate water supplies. thus, it is alarming that global warming may threaten farmers' incomes and prevent the nation from achieving long-term sustainability (vahid et al., 2018). a notably high level of land deterioration brought on by global warming accelerates soil dehydration and nutrient deficiency. the problem of habitat destruction is claimed to be an enormous global threat worsening by the minute. any weather patterns that interrupt agricultural production and transportation, whether locally or globally, can have a significant impact on food availability, quality, and safety (agency). due to changing cuisines and a growing global population, the hunger for food is growing. as global grain yields decline, marine quality deteriorates, and environmental ecosystems such as lands, waters, and wildlife are severely reduced, it is difficult for production to keep up (bank, 2021). climate change will likely impact agricultural productivity in various locations throughout the coming decades. figure 2. predicted modifications to crop yields over the 21st century agbioforum, 24(3), 2022 | 10 nurhayati, yahya, barus, sabrina, basyaruddin, siregar, dalimunthe, koryati, and anwar. climate change and its effects on agricultural ... future food insecurity is anticipated to be substantially aggravated by climate change, rising inflationary pressure, and declining food production. food may become more unaffordable due to rising resource inflation caused by efforts to counteract global climate change. due to increased agricultural water demand and droughts, the water required for agricultural output may become more constrained. agricultural biotechnology may be an essential tool for addressing the causes and effects of climate change and achieving significant socioeconomic goals, such as reducing hunger, boosting international food security, and decreasing agriculture's ecological impacts (agriculture). products created with argo technology, including vegetative propagation that creates renewable bioenergy, vegetables and fruits with extended shelf life, and goods that prevent food waste, may help lower carbon dioxide emissions. using agricultural engineering, farmers of livestock and plants could produce livestock and plants resistant to natural pressures, such as drought, heatwaves, new diseases, and other obstacles. the bulk of firms and an entire stage of industrial prosperity are impacted by a techno-economic framework, which comprises massive constellations of interwoven technology and economic developments (andrew, 2019). biotechnology has provided manufacturers with a variety of cost-cutting and efficiency-enhancing solutions. some biotechnology cultivars, for instance, can be modified to resist specific insecticides, simplifying and improving integrated pest management's efficacy. biotechnology developments may provide humans with foods that are more nutritious, more resistant to spoilage or include trace amounts of naturally occurring toxins in some fruits and vegetables (agriculture). in addition to global temperature and weather events, substantial changes in precipitation patterns are projected due to predicted climatic transitions. upcoming shortages are likely to affect some regions more regularly. in contrast, severe rainstorms and more intense flash floods are forecast for some regions. to boost the agriculture sector's capacity to adapt to a changing environment, policymakers must employ many flexible policies. additionally, producers must select improved designs and approaches. assume the administration and farmers can effectively adapt. in this instance, the agricultural industry may be able to survive temperature and precipitation changes and may even gain from climate change. using existing technologies and strategies, such as altering crop patterns, might not necessitate substantial additional investments. costlier adaptation strategies will typically provide more significant benefits (karimi et al., 2018). suppose producers have access to biotechnology solutions that mitigate the negative effects of climate change. in that case, there is great potential for conserving agricultural and food products from potential detrimental effects and expanding agriculturally productive areas into currently unsuitable locations. farmers are likely to rapidly embrace these production-sustaining or increasing technology, especially in places where temperature, dryness, or saltwater have been acting against them over several years. implementing agricultural biotechnology can significantly increase food chains' resilience while aiding in climate change mitigation and adaptation. the united states is a leader in agricultural research and development to improve efficiency and stimulate the use of environmental assets in agribusiness. farmers confront a severe economic challenge due to a decline in output. they currently struggle to compete with industrialized countries where subsidies have unfairly cut the cost of agricultural products (forum, 2019). 1.1 problem statement and rationale the sustainability of the environment is increasingly threatened by climate change. the predicted effects of climate change could threaten agriculture's ability to feed the world and significantly delay attempts to alleviate hunger, malnutrition, and poverty. immediate action is essential for agricultural production to be prepared for constantly fluctuating environmental circumstances (nations). any weather patterns that interrupt food supply and transit, whether locally or globally, may have a significant impact on food availability, quality, and safety. in rising economies, there are minimal opportunities for flexibility, such as altering livestock or agricultural practices or enhancing irrigation. agriculture is a prominent business for climate change impacts due to the direct influence of global warming on agriculture and the enormous ramifications for societal well-being and food production. due to population growth and economic expansion across the bulk of the emerging world, the demand for agricultural commodities and food has reached unimaginable heights. despite more significant efforts to eliminate hunger and raise agricultural production, several low-income nations, particularly those in sub-saharan africa and south asia, will struggle to ensure that everyone has access to sufficient food. these regions practice agriculture and are not technologically or economically developed enough to minimize the negative effects of climate change. additionally, there is little room for personalization. their reliance on agriculture for a living is detrimental to the inhabitants of these nations. climate change is a phenomenon that has negative effects on abiotic and biotic components as well as food security. no comprehensive bibliometric study has been performed on it. this study is a bibliometric analysis of the previous ten years. although climate change is acknowledged as a global phenomenon, its consequences are felt most strongly in developed markets due to their higher vulnerability and limited ability to mitigate its effects (ali et al., 2017). the agricultural productivity in food-insecure regions is threatened by climate change, notably in asian nations. various weather patterns, including drought, rising temperatures, unpredictable and intense precipitation patterns, thunderstorms, flooding, and an increase in predatory insects, have significantly impacted farmers' agbioforum, 24(3), 2022 | 11 nurhayati, yahya, barus, sabrina, basyaruddin, siregar, dalimunthe, koryati, and anwar. climate change and its effects on agricultural ... way of life (habib-ur-rahman et al., 2022). climate change harms the evaluation criteria of wheat plants, specifically their total protein, sugar, and carbohydrate contents. wheat grains express less protein due to increased temperature and carbon dioxide levels, which stimulate the expression of development characteristics but inhibit protein expression. this study examines the relationship between climate change and numerous agricultural aspects, given the preceding characteristics. to address the interrelated concerns of sustainable construction, ensuring agricultural production, and combatting climate change, agriculture production infrastructures and food networks must be modified as described below. increased capacity utilization is required to improve and safeguard food production throughout time and significantly contribute to avoiding global warming. finding effective methods to encourage individuals to utilize weather pattern substitutes is a fundamental objective. in many nations, agricultural legislation and financial aid for local livelihoods are tightly intertwined. there are many chances for low-income nations to direct output in more effective and long-lasting ways. focusing on a detailed meta-analysis, this study began with a comprehensive review of the agricultural literature on the effects of climate change on agricultural production. using bibliometric analysis of the dataset, the current study findings are aggregated to a global level. 1.2 aims and objectives this review's primary objective is to provide a bibliometric analysis of research conducted over the previous decade on the effects of climate change on plants. for this reason, teams specializing in biotic, abiotic, agricultural, and food security have focused on the review. in addition to offering a bibliometric summary, an overview of the publications' conclusions is also provided. 1.3 research significance agriculture farmers in emerging nations who are vulnerable to food insecurity due to global warming and who have little finances, few government initiatives, and few institutional resources can be assisted by the current study in adapting to change. it is necessary to intervene to assist those farmers who have contributed the least to climate change but are the most hit by it and to allow rising economies to improve agricultural productivity and stimulate their economies. climate-smart agribusiness provides a model for efficiently applying rules, sufficient organizations, and government performance to execute climate-sensitive planning applications. in addition, the approach can focus new money on research organizations' capital investments and assist farmers in overcoming challenges such as up-front costs and temporary revenue losses that prohibit them from implementing climate-smart farming practices. all of these climate disturbances could substantially impact the geographical distribution of food, as well as its availability and quality. in addition, this would raise ethical concerns due to the direct relationship between food supply and world health, resulting in a downward spiral of poverty, disease, and crime. this study focuses on upcoming challenges and mitigating strategies to alleviate the consequences of climate change and ensure agricultural output for humans and other life forms. agriculture and climate science are intricately related. the high rate of climate change will have a considerable impact on agribusiness and its output. the increasing annual temperature may impair crop productivity. in conjunction with meteorological and economic systems, crop development projections are useful for projecting the effects of global warming and building policy frameworks. in response to the negative impacts of climate change, it may achieve sustained output within weather patterns and vital agriculture by using mitigation and adaptation methods. due to its complex structure and interconnections, agribusiness will remain obscure in a global period where the state's agricultural production faces considerable danger. in light of this, the current study will assess the negative consequences of climate change on the agriculture industry and develop mitigation and adaptation strategies. 1.4 structure of review this research will be organized with an introduction, an abstract of the thesis, and seven primary sections for the paper's body 1.5 research method this study's primary objective was to examine prior literature discussing climate change and its effect on enzymatic and microbiological activity. in addition, it examines the impact of climate change on agricultural aspects. bibliometric analysis was undertaken for this aim, followed by research by malhi et al. (2021) and kogo et al. (2001). according to donthu et al. (2021), bibliometric analysis is a scientific and sophisticated way to understand information science and library disciplines comprehensively. bibliometrics combines the statistical methods used to assess articles, books, and other publications within the framework of scientific content. it is a quantitative way of analyzing and citing content. this method is beneficial for predicting the future trends of fields. a bibliometric evaluation was conducted for this study in the context of climate change and its impact on agricultural aspects. to achieve this, vosviewer software was utilized. this evaluation consisted of four significant steps (figure 1), which included: • step 1: data collection • step 2: data analysis • step 3: data visualization • step 4: interpretation agbioforum, 24(3), 2022 | 12 nurhayati, yahya, barus, sabrina, basyaruddin, siregar, dalimunthe, koryati, and anwar. climate change and its effects on agricultural ... figure 3. research methodology this study's primary objective was searching online for reputable journals. the primary focus of these publications is on climate change and agriculture. prisma (preferred reporting items for systematic reviews and metaanalyses) criteria were used to review the prior literature. according to the prisma standards, no meta-analysis strategies were considered. the journals linked with climate change and agriculture were searched on google scholar. this investigation was done between 2013 and 2022. investigation, a final sample of 29 journal articles was chosen. four essential steps were included in this process: (a) identification (in this step, online databases were figure 4. prisma diagram the acquired data was appropriately examined according to the suggested selection criteria based on the proposed keyword list and other relevant parameters. for this searched on google scholar using the formulated keyword list); (b) screening (in this step, the documents from journals with an impact factor of 3 to 5 that focused on agriculture and climate change were separated from the rest of the irrelevant documents); and (c) eligibility (in this agbioforum, 24(3), 2022 | 13 nurhayati, yahya, barus, sabrina, basyaruddin, siregar, dalimunthe, koryati, and anwar. climate change and its effects on agricultural ... step, the irrelevant documents and documents that were not in english were eliminated) (in this step, the final list of included journal articles for the present study were presented for further analysis). consequently, the prisma diagram for this study is shown in figure 2. 1.6 keywords an adequate and effective search criterion was established for the present study to collect the required data. the results from prior studies, such as (parajuli et al., 2019) and (tang, 2019), conducted in the context of climate change and agriculture, were focused on formulating effective search criteria for the current study. for this purpose, a list of keywords focusing on climate change and agriculture was formulated. these keywords included: "agriculture;" "climate change;" "mitigation strategies;" "climatesmart agriculture technologies;" "economic impact;" "causes;" "social impact;" "diseases;" "pests;" "weeds;" "global warming;" "carbon dioxide emissions;" "green gases;" "health-related issues;" "enzymatic activities;" "microbial population" and other related keywords. 1.7 selection of online databases in the context of bibliometric analysis, selecting online resources is vital for gathering the necessary data. the bibliometric dataset is typically extensive, highlighting the importance of utilizing excellent and suitable online database sources. based on earlier research undertaken in agriculture and climate change, two critical online databases were chosen for the present study. scopus and wos were these online resources. according to the issue under discussion, only a small number of documents were gathered from these databases, stressing the selection of additional online databases for this purpose. thus, google scholar was the primary source for identifying other online databases to obtain the necessary data on climate change, agriculture, and other related topics. thus, ieee, wiley online, science direct, francis and taylor, springer, mdpi, elsevier, and frontiers were selected as additional online databases for this investigation. 1.8 data collection route an efficient data collection approach was adopted to acquire the necessary bibliometric data for this investigation. the recommended search criteria for this study were rigorously evaluated for this aim. the following actions were taken to acquire the essential data: • initially, the selected keywords for the present study were entered into the google scholar search engine, and approximately 113 relevant documents were retrieved. we organized the collected documents according to their sources and chose the materials published in the selected internet databases for this study. we acquired 90 documents as a result of this procedure. these materials comprised journal articles, conference papers, book chapters, and other publications. • for this analysis, we collected only journal publications from 2013 to 2022 that focused on climate change and agricultural aspects. therefore, we compiled all papers into an excel spreadsheet and divided the journal articles pertinent to the designated period. there were 60 selected articles in all. • we then concentrated on the language of the chosen journal articles. according to the selection criteria for the present study, all selected papers and publications must be written in english. in the framework of the present research project, a final sample of 29 journal articles was chosen for bibliometric analysis following rigorous evaluation. there were no journal papers published before 2013 in this sample. 1.9 data analysis there has been a steady increase in technological advancement over the years, which has led to the creation of numerous sophisticated and efficient bibliometric analysis software programs. "vosvewer" and "bibliometrix package of r software" are two of the most prevalent bibliometric analytic tools and approaches (moral-muoz et al., 2020). inspired by previous research (malhi et al., 2021), we employed vosviewer to conduct bibliometric analysis within the framework of the present research study. vosviewer efficiently manages more extensive networks and provides adequate text-mining functionality. vosviewer is utilized in various study fields, including business, construction, library, and agriculture. this explains its usefulness for the current bibliometric study. therefore, vosviewer was employed to conduct a bibliometric analysis for this study. however, five significant characteristics were considered when analyzing this study's collected publications and papers. countries, keywords, scientific journals, citations, and authors were among these criteria. these criteria facilitate a better grasp of the current situation of the connected topic. according to donthu et al. (2021), the most critical bibliometric metrics are average citations, documents, average normalized citations, citations, and publication year on average. in this aspect, the more significant the score, the greater the influence. table 1: main information about the data time horizon 2013-2022 total documents 29 authors 143 total keywords 103 keywords focused climate change, agriculture, plants, microbes, pests, floods, drought, etc. 2. results this review spans the years 2013 to 2022 and contains twenty-nine articles. according to an analysis of these documents, 143 authors and 103 keywords were included agbioforum, 24(3), 2022 | 14 nurhayati, yahya, barus, sabrina, basyaruddin, siregar, dalimunthe, koryati, and anwar. climate change and its effects on agricultural ... in this data collection. the vosviewer word frequency analysis indicated that the six most often used terms were food security, drought, climate change, impact, weight, and agriculture. according to the review team, climate change was the most frequent term in the keywords and titles of the reviewed papers. the table below displays the number of occurrences and related vosviewer ratings for each of the terms, whereas figure five depicts a network diagram for these terms. table 2: key word frequency (vosviewer) terms occurrence relevance score (vosviewer) drought 4 2.74 food security 3 1.07 climate change 22 1.04 impact 8 0.54 weed 5 0.46 agriculture 3 0.15 figure 5: network diagram of keywords the following analysis performed on the sampled papers was of authorship. the smallest number of authors in the sampled publications was one, and the maximum was ten, as shown in table 3. only one paper had one author, five papers had two authors, six papers had three, four papers had four authors, three papers had five authors, one paper had six writers, and three papers each had seven, eight, and ten authors. table 3: number of authors per paper number of authors number of papers percentage 1 author 1 3.5 2 authors 5 17.3 3 authors 6 20.7 4 authors 4 13.8 5 authors 3 10.3 6 authors 1 3.5 7 authors 3 10.3 8 authors 3 10.3 9 authors 0 0 10 authors 3 10.3 total 29 100 figure 6: author frequency 1 author, 1 2 authors, 5 3 authors, 6 4 authors, 4 5 authors, 3 6 authors, 1 7 authors, 3 8 authors, 3 9 authors, 0 10 authors, 3 agbioforum, 24(3), 2022 | 15 nurhayati, yahya, barus, sabrina, basyaruddin, siregar, dalimunthe, koryati, and anwar. climate change and its effects on agricultural ... additionally, vosveiwer was utilized to examine the cooccurrence of authors. 18 authors were discovered to be associated; nevertheless, they did not form a single cluster but rather three clusters. these clusters are exhibited in figures 7/8 and 9. the first cluster is the largest, containing ten interconnected writers through the publications sampled for this review. similarly, the other two clusters had three and five authors, respectively. figure 7: author cluster 1 figure 8: author cluster 2 figure 9: author cluster 3 agbioforum, 24(3), 2022 | 16 nurhayati, yahya, barus, sabrina, basyaruddin, siregar, dalimunthe, koryati, and anwar. climate change and its effects on agricultural ... in this review, a range of articles from various periodicals was analyzed. however, all journals were peer-reviewed and indexed on the web of science. table 4 displays the list of included periodicals and the number of publications extracted from each journal. table 4: journal distribution journal # of papers current opinion in insect science 1 current opinion in plant biology 1 ecosphere 1 environmental research letters 1 environmental sustainability 1 environments 1 frontiers in plant science 1 insects 1 international journal of climate change strategies and management 1 international journal of clinical and biological sciences 1 journal of ecology 1 journal of experimental botany 1 microbiology and molecular biology reviews 1 perspectives in ecology and conservation 1 plos one 1 scientific reports 1 soil & plant science 1 sustainability 1 the isme journal 1 advances in agronomy 2 agronomy 2 current climate change reports 2 nature 2 regional environmental change 2 the distribution by year was also investigated. the majority of the 29 publications included in this study were published in 2020 (7) and 2021, according to this analysis (5). this demonstrates that contemporary research is concentrating more and more on how climate change has affected the local plant biodiversity. figure 10 also illustrates the year-by-year distribution of the publications included in the review. table 5: year-wise distribution of papers year number of papers percentage of papers 2013 1 3.5 2014 0 0 2015 2 6.9 2016 4 13.8 2017 3 10.3 2018 3 10.3 2019 4 13.8 2020 7 24.1 2021 5 17.3 2022 0 0 total 29 100 figure 10: yearly distribution the researcher has also studied journal distribution by year to enhance the results. only one journal from 2013 was included. two journals from 2015, four from 2016, three from 2017, two from 2018, four from 2019, six from 2020, and five from 2021 were included. the journals listed in table 6 are as follows. 1 0 2 4 3 3 4 7 5 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 agbioforum, 24(3), 2022 | 17 nurhayati, yahya, barus, sabrina, basyaruddin, siregar, dalimunthe, koryati, and anwar. climate change and its effects on agricultural ... table 6: year-wise journal distribution year journals total 2013 journal of ecology 1 2015 ecosphere nature 2 2016 advances in agronomy regional environmental change international journal of clinical and biological sciences current opinion in plant biology 4 2017 microbiology and molecular biology reviews plos one frontiers in plant science 3 2018 current climate change reports agronomy 2 2019 environments scientific reports soil & plant science environmental sustainability 4 2020 current opinion in insect science regional environmental change, agronomy journal of experimental botany the isme journal international journal of climate change strategies and management nature 6 2021 perspectives in ecology and conservation insects sustainability agronomy environmental research letters 5 the papers included in this review were also evaluated based on their approach. most of the included publications were either qualitative reviews or idea papers. 18 studies were qualitative reviews, 2 were concept papers, and 2 were reviews based on a meta-analysis. in addition, five of the included studies employed experimental tactics leading to quantitative statistical analysis, one used a practical strategy leading to an analysis based on structural equation modeling, and one used a quantitative technique based on statistical analysis and regression. table 7: methodological distribution methodology type number of papers percentage concept paper 2 6.9 review (qualitative) 18 62.1 quantitative (experimental and statistical analysis) 5 17.2 quantitative (statistical and regression) 1 3.5 quantitative (experimental and sem) 1 3.5 meta-analysis review 2 6.8 figure 11: method-type percentage as for the topics mentioned in the articles, the examined research was divided into three sections: abiotic factors influencing plants due to climate change, biotic factors impacting plants due to climate change, and publications pertaining to agriculture and food security. the biotic aspects were subdivided into pollinators, soil interaction and microorganisms, pests, and weed control. in addition, the evaluated abiotic stressors included drought, flooding, and heat stress. table 8 displays the categorization of the reviewed studies. 7% 62% 17% 4%3%7% concept paper review (qualitative) quantitative (experimental and statistical analysis) quantitative (statistical and regression) quantitative (experimental and sem) agbioforum, 24(3), 2022 | 18 nurhayati, yahya, barus, sabrina, basyaruddin, siregar, dalimunthe, koryati, and anwar. climate change and its effects on agricultural ... table 8: thematic classification biotic factors pollinators (giannini et al., 2020) (giannini et al., 2017) (gómez-ruiz & lacher jr, 2019) (gonzalez et al., 2021) (marshman et al., 2019) soil interactions and microbes (classen et al., 2015) (lladó et al., 2017) (jansson et al., 2020) (bardgett et al., 2013) (fahey et al., 2020) pests (skendžić et al., 2021) (war, taggar, war, & hussain, 2016) (ziska et al., 2018) weeds management (clements & jones, 2021) (ramesh et al., 2017; sun et al., 2020; vila et al., 2021) abiotic factor drought (berg et al., 2018; fahey et al., 2020; mukherjee et al., 2018) heat stress (ihsan et al., 2019; janni et al., 2020) floods and salinity (kaur et al., 2020; loreti, van veen, & perata, 2016; wright et al., 2015) agriculture and food security (arora, 2019; chandio et al., 2020; connolly-boutin et al., 2016; jat et al., 2016; malhi et al., 2021) 3. findings in recent years, the constant rise in global warming has significantly impacted agriculture, resulting in food insecurity. this has prompted numerous previous research to examine the effects of climate change on agricultural sustainability and food security. this study examines previous research to understand the relationship between the agriculture sector and climate change. therefore, thirty articles and papers published between 2013 and 2022 in the context of climate change and the agriculture sector were included in the bibliometric analysis of the current research study. as a result of this analysis, three critical themes were formulated for the present study: (a) climate change impacts on biotic factors relating to plants (it is further classified into different sub-themes including drought, flooding, and heat stress); (b) climate change impacts on abiotic factors relating to plants (it is further classified into different sub-themes including pollinators, soil beneficial plant microbes, and climate change effects on insects); and (c) climate change impacts on biotic factors relating to plants 3.1 climate change impacts biotic factors relating to plants this research demonstrated that climate change affects biotic elements in agriculture, including plants, bacteria, fungi, and animals. this theme is subdivided into four subthemes: pollinators, soil-beneficial plant microorganisms, and the effects of climate change on insect pests and weeds. according to giannini et al. (2020) and gómez-ruizet al. (2019), natural crop pollinators include small insects such as bees, butterflies, etc. these insects have been vital to the pollination process for centuries. however, climate change has disrupted the equilibrium between these insects' native habitats and their performance (giannini et al., 2017). due to accelerated climate change, it has become increasingly difficult for these insects to withstand the environmental stress that negatively affects their overall effectiveness (gonzalez et al., 2021). in recent years, as a result, synthetic pollinators have replaced these natural pollinators, also contributing to excessive climate change (marshman et al., 2019). both classen et al. (2015) and lladó et al. (2017) emphasized the importance of beneficial soil bacteria to the ecosystem. it has been discovered that many forest-soil microorganisms, including specific bacteria and fungi, have always been effective in boosting micronutrients necessary for many agricultural results. numerous academics and researchers have also pushed for the importance of beneficial soil bacteria in soil fertility. nonetheless, jansson et al. (2020) and bardgett et al. (2013) found that climate change harms these bacteria, reducing the overall fertility of the soil and resulting in bad agricultural outcomes. therefore, many sustainable measures are required to ensure the contribution of soil microorganisms to soil fertility (fahey et al., 2020). according to skendi et al. (2021), in addition to drought, floods, and other natural hazards, climate change has resulted in insect pests that have harmed the overall performance of the ecosystem, leading to unfavorable agricultural outcomes. war et al. (2016) and ziska et al. (2018) found that climate change has harmed plant pest interactions, chemical ecology, and phytophagous insects, resulting in food insecurity. therefore, climate change has contributed to national and worldwide food insecurity, prompting numerous governments and politicians to take significant action. according to clements et al. (2021) and ramesh et al. (2017), the emission of carbon dioxide and methane has affected the ecology and biology of weeds, influencing their total growth and development. changes in the climate have affected not only the health results of living things, but also the general functioning of the agricultural system (vila et al., 2021). however, previous work has also proposed using various mitigation and adaptation techniques in the context of complex weed interactions resulting from climate change (sun et al., 2020). agbioforum, 24(3), 2022 | 19 nurhayati, yahya, barus, sabrina, basyaruddin, siregar, dalimunthe, koryati, and anwar. climate change and its effects on agricultural ... author and year theme main findings (bardgett et al., 2013) biotic (soil microbes) a framework is presented that highlights a need for approaching plant and soil interaction and carbon cycling strategies in response to climate change to mitigate the negative impacts of climate change. (classen et al., 2015) biotic (soil microbes) this review discussed the impact of soil microbe and plant interactions of climate change on these interactions and the future research directions that can be adopted in this domain. (wright et al., 2015) abiotic (flooding and salinity) climate change-induced flooding activities were found to be associated with increased productivity of crops and decreased stability of plants. (connolly-boutin & smit, 2016) agriculture and food security the framework presented in this paper discusses how food security and climate change can be researched in the future to make effective policies and programs for food and agricultural sustainability. (jat et al., 2016) agriculture and food security this review revealed the need for shortand long-term policies for increasing the sustenance and protection of natural resources like plants and food crops to enhance overall food security and agricultural sustainability. (loreti et al., 2016) abiotic (flooding and salinity) different plants have varying salinity and flood resistance levels. overall, there is a need to enhance the research in this domain to develop better mitigation and survival strategies. (war et al., 2016) biotic (pests) the possible impact of climate change on various pests, chemical ecology, and interactions between plants and pests are studied in this review, which can create food insecurity. (giannini et al., 2017) biotic (pollinators) this study reveals municipalities where crops are economically essential and climate change can have the worst impact on pollinators. however, the study also discusses several policy decisions that can be adapted to overcome the loss of pollinator species due to climate change (lladó et al., 2017) biotic (soil microbes) bacterial ecology in forest soils is not fully understood. it needs to be evaluated in the future to understand how soil microbes can combat climate change. (ramesh et al., 2017) biotic (weeds) climate change has impacted weed management and ecosystems, leading to the need for further research in the domain to understand how weeds can be managed better to preserve plants. (berg & sheffield, 2018) abiotic (drought) droughts can drastically impact the level of soil moisture levels. they can play to impacting the vegetation sustainability in a region. (mukherjee et al., 2018) abiotic (drought) this review indicates that the performance of drought indicators can be improved by incorporating reliable soil moisture estimations. (ziska et al., 2018) biotic (pests) this review presented an overview of pest biology and climate interactions. (arora, 2019) agriculture and food security climate change has led to increasing land degradation and has caused growing in desertification and the production of nutrient deficient soil. (gómez-ruiz & lacher jr, 2019) biotic (pollinators) pollinators are impacted by environmental changes leading to the increasing vulnerability of agave plants. (ihsan et al., 2019) abiotic (heat stress) sulpher-induced heat stress reduction strategies are increasingly used and must be further researched. (marshman et al., 2019) biotic (pollinators) it is found that pollinator health is an important domain to be addressed in future research, and the bee city movement strategy is proposed (chandio et al., 2020) agriculture and food security the study reveals that it is essential for policymakers to understand the impact of climate change on overall food production and food security to develop strategies. (fahey et al., 2020) biotic (soil microbes) abiotic (drought) the study revealed that plant communities could mediate the impact of global change drivers on the community structure of soil microbes; this leads to indicate that the potential consequences of climate change on community dynamics and ecosystem functions can be mitigated through management strategies (giannini et al., 2020) biotic (pollinators) climate change has impacted all the analyzed traits of pollinating bees leading to indicating that biodiversity and plant diversity is negatively affected by climate change (janni et al., 2020) abiotic (heat stress) it is essential to ensure that heat stress induced by climate change is managed effectively to ensure that future generations have sustainable food chains and food security. (jansson & hofmockel, 2020) biotic (soil microbes) climate change impacts soil microorganisms significantly, and there is a need to research strategies to mitigate these negative consequences. (kaur et al., 2020) abiotic (flooding and salinity) there is a need to develop flood management and waterlogging management strategies that can help in the sustenance of crops (sun et al., 2020) biotic (weeds) the review discusses potential ecological and evolutionary responses to weeds to increase plant sustenance under climate change. (clements & jones, 2021) biotic factors (weeds) invasive plant species, such as weeds, have better resistance to climate change in comparison to native plants, leading to creating a disbalance in the sustenance of weeds compared to plants. (gonzalez et al., 2021) biotic (pollinators) new conservation and climate adaptation strategies must be developed to help beekeepers increase bee pollinators' sustenance and enhance food sustainability through pollination activities. (malhi et al., 2021) agriculture and food security it is reported in this review that various outcomes of climate change in the agricultural sector can impact the physiological and metabolic activities of plants leading to impacting the plant productivity and sustenance. (skendžić et al., 2021) biotic (pests) pest management tactics and monitoring strategies must be enhanced in response to climate change as pests have become more resistant. (vila et al., 2021) biotic (weeds) the combined impact of climate change and weeds has negatively impacted crops' productivity regarding yield and sustenance. agbioforum, 24(3), 2022 | 20 nurhayati, yahya, barus, sabrina, basyaruddin, siregar, dalimunthe, koryati, and anwar. climate change and its effects on agricultural ... 3.2 climate change impacts abiotic factors relating to plants the present study shows that climate change impacts not only the biotic components in agriculture but also a variety of abiotic factors, such as water, soil, air, and light. this theme has three subthemes: drought, heat stress, and flooding. different microbial and fungal communities have been discovered to play a critical role in an ecosystem. berg et al. (2018) further emphasized the significance of soil moisture for the effective functioning of these communities in enhancing an ecosystem's overall performance. as demonstrated in the research of mukherjee et al. (2018) and fahey et al. (2018), climate change frequently influences soil moisture content, resulting in droughts that damage the overall performance of these communities and contribute to poor agricultural outcomes 2020. in addition, the climate changes brought on by the excessive production of carbon dioxide and other greenhouse gases contribute to heat stress, which hinders the overall agricultural performance of the system and causes food insecurity (janni et al., 2020). this has stressed the promotion of various genetic engineering technologies to create plants that can withstand extreme heat stress due to ongoing climate change (ihsan et al., 2019). it has been noted that multiple natural disasters, such as floods and cyclones, have been exacerbated by a rise in climate change (loreti et al., 2016). in the past decade, floods have significantly impacted most asian nations, affecting not just their agricultural sectors but also their economic performance (wright et al., 2015). over the years, floods have disrupted the general infrastructure of communities, affecting the economic and social well-being of the affected people (kaur et al., 2020). 3.3 climate change impacts on agriculture and food security this research demonstrated that climate change negatively influences agricultural sustainability and food security. this viewpoint was further reinforced by chandio et al. (2020), who stated that extensive carbon emissions relate to precipitation, land area, and energy consumption, hence fostering climate changes that negatively impact agricultural yields. moreover, due to a sustained rise in population, governments in various nations are exerting pressure on agricultural sectors to maintain food security. according to the effects of jat et al. (2016) and others, as the climate continues to change, a variety of food security vulnerabilities are being exacerbated, resulting in a lack of natural agricultural reserves (connolly-boutin et al. 2016). in addition, the increase in greenhouse gas emissions over the past two decades has damaged global food security, raising the worries of numerous professionals and academics (arora, 2019). to overcome these challenges, numerous researchers have stressed the promotion of various mitigation measures, which could effectively encourage the development of resilient plants that can endure them. in this regard, malhi et al. (2021) advocated using various genetic engineering techniques to facilitate the production of climate-resilient plants. other mitigation measures in this regard are technology concentrating on water-smart practices and nutrient-smart practices. these tactics have also proven to be useful in enhancing agricultural sustainability. in the past, however, such mitigation techniques have not received much attention, so future studies can focus on them to assure food security, given the urgency. 4. conclusion globally, climate change has become a key problem for numerous industries. however, the agricultural sector is most impacted by climate change's impact on global food security. in the past, numerous studies have examined the relationship between climate change and the agricultural industry, providing a variety of pertinent challenges. this research is primarily a review of previous studies on climate change and agricultural issues. a bibliometric study was undertaken on 29 journal articles from 2013 to 2022 that were picked from several internet databases proposed for this purpose. as a result of this analysis, three critical themes were developed: (a) climate change impacts on biotic factors relating to plants (it is further categorized into different sub-themes including drought, flooding, and heat stress); (b) climate change impacts on abiotic factors relating to plants (it is further categorized into different sub-themes including pollinators, soil beneficial plant microbes, climate change effects on insect pests and weed); and (c) climate change impacts on biotic factors relating to thus, this study concludes that climate change has a detrimental effect on agricultural outcomes, resulting in food insecurity and other social and economic difficulties. the impact of climate change on the ecosystem is also detrimental to agricultural sustainability. to promote agricultural sustainability, several mitigation techniques must be prioritized. prior research has not primarily centered on adaptation and mitigation techniques that could increase agricultural sustainability. thus, future research must concentrate on such mitigation techniques. in addition, future research in the context of genetic engineering technologies for the breeding of resilient plants would effectively mitigate the detrimental effects of climate change on agricultural sustainability. 5. contributions and implications this research contributes to our understanding of the effects of climate change on agriculture. even though numerous research papers in the past have focused on the relationship between climate change and agriculture, this study will effectively convey these findings in a unified manner through bibliometric analysis. this study will also concentrate on the various effects of climate change on crops. the present study's contribution to such adaption techniques may also improve the understanding of many farmers and other stakeholders regarding the significance of sustainable strategies, encouraging them to implement these strategies to enhance the overall agricultural environment. in addition, this research study will agbioforum, 24(3), 2022 | 21 nurhayati, yahya, barus, sabrina, basyaruddin, siregar, dalimunthe, koryati, and anwar. climate change and its effects on agricultural ... contribute to the body of knowledge on sustainable development and natural reserves. however, the present study's examination of digital technologies in the context of climate change, agriculture, and sustainability will offer new avenues for future research in this area. this will be an excellent strategy for relating digital technologies to sustainability in the agriculture industry. almost no prior research has been conducted on the use of sustainable digital technologies in the agriculture sector to mitigate the effects of climate change; therefore, the present study will effectively contribute to this aspect of sustainable digital technologies, encouraging future researchers to focus on a variety of climate change mitigation strategies. in addition, our research will effectively promote various practical measures to mitigate the adverse effects of climate change on agriculture. it has been observed that population growth has exerted a great deal of pressure on the agriculture industry. however, the deteriorating climate change has also impacted agriculture, prompting farmers and other involved parties to take significant measures to mitigate the detrimental effects of climate change on agriculture to secure food security for the world population. this report will effectively persuade farmers and agricultural sectors to adopt measures to mitigate global warming. this study will convince them to employ more sustainable digital technology to mitigate the effects of climate change on crops. thus, the use of climateresilient technology can be increased with the aid of this study, as it will encourage farmers and other relevant stakeholders to develop and execute various mitigation and adaptation measures. in this context, rural farmers' education and training will be promoted to achieve successful results. in addition, this research study will be effective in persuading various governments and policymakers to develop and implement significant agricultural policies, with a focus on the promotion of sustainable digital technologies and other related mitigation strategies in the agricultural sector, to improve food security and ensure the public's health and safety. 6. future research work this investigation was limited to the effects of climate change on agricultural elements. it has also been observed that most of the prior research evaluated in this context focused on the relationship between the agriculture industry and climate change. in contrast, accompanying mitigating strategies received minimal attention. therefore, future studies might be conducted to close the gap in knowledge regarding mitigation techniques to lessen the impact of climate change on crops. modern climate-smart breeding technologies, carbon-smart technologies, water-smart technologies, weather-smart technologies, nutrient-smart technologies, and knowledgesmart technologies are among these tactics. however, continuing advances in biotechnology have also spurred the development of various biotechnological strategies for plant breeding. these technologies have proven effective in the development of climate-tolerant, climate-resilient plants. future quantitative and qualitative research can be conducted to contribute originality to future studies and knowledge of climate change mitigation and adaptation techniques in the agricultural industry. in addition, nearly no prior research has focused on mitigation techniques that can mitigate the harmful effects of climate change on agricultural sustainability. thus, future research can effectively examine these tactics. future studies can concentrate on various water-smart practices, such as raised-bed planting, micro-irrigation, direct seeded rice, crop diversification, rainwater harvesting, and laser-land leveling, etc.; weather-smart practices, such as ict-based agro-meteorological services and stress-tolerant varieties, etc.; and nutrient-smart techniques, such as leaf color charts, nutrient application, crop-residue management, the encouragement of carbon dioxide emissions is, nonetheless, one of the most significant challenges noted in the context of agricultural sustainability. in this connection, future research may examine various technologies for carbon-smart practices (including legumes, zero tillage, management of crop residue, etc.). in this regard, it is also necessary to expand the knowledge of farmers and other connected stakeholders, which can be done with various technologies encouraging knowledge-smart practices, such as agricultural extensions. this may increase capacitybuilding efficiency. future research can also focus on alternative genetic engineering technologies in addition to these mitigation techniques. in addition, the agricultural sector is implementing climate-forecasting technologies to prevent any harmful effects of climate change on crops. these solutions can also inspire future research advocating mitigation and similar technologies to enhance the agriculture sector's overall sustainability. this can effectively ensure global food security. 7. limitations even while the current research study successfully examined the effects of climate change on several aspects of agriculture, it also has some flaws that can be addressed in future research. this study's assessment of a minimal number of journal papers from several internet databases is one of its drawbacks. due to researcher bias, this study was also restricted to the association between climate change and agricultural parameters. in this context, the mitigation techniques received little attention. due to ease of availability, there was also a short window for selecting articles (from 2013 to 2022). thus, future research can address these limitations. future research may contain numerous journal articles within the context of the topic at hand. in this sense, future research must incorporate additional conference papers and journal articles for a more comprehensive approach. consequently, in future research, mitigation techniques in the context of climate change and agricultural sustainability can also lead to more effective outcomes. therefore, 20 to 30 years can be chosen to collect the necessary data for future agbioforum, 24(3), 2022 | 22 nurhayati, yahya, barus, sabrina, basyaruddin, siregar, dalimunthe, koryati, and anwar. climate change and its effects on agricultural ... investigations. references administration, n. o. a. a. 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(2018). climate change, carbon dioxide, and pest biology, managing the future: coffee as a case study. agronomy, 8(8), 152. doi: https://doi.org/10.3390/agronomy8080152 https://doi.org/10.3390/rs12020218 https://doi.org/10.1016/j.cois.2020.02.003 https://doi.org/10.1016/j.scitotenv.2018.09.316 https://doi.org/10.1016/s2095-3119(17)61794-5 https://doi.org/10.1088/1748-9326/abe14b http://oar.icrisat.org/9735/1/impact%20of%20climate%20change.pdf http://oar.icrisat.org/9735/1/impact%20of%20climate%20change.pdf https://doi.org/10.1038/ncomms7092 https://doi.org/10.3390/agronomy8080152 agbioforum, 25(1): 49-57. ©2023 agbioforum agricultural restructure policy in vietnam and practical application for sustainable development in agriculture mai thi huyen bac giang agriculture and forestry university (bafu), bac giang, viet nam. email: huyenmt@bafu.edu.vn nguyen thi xuan huong* viet nam national university of forestry (vnuf), ha noi, viet nam email: xuanhuongfuv@gmail.com nguyen van song viet nam national university of agriculture (vnua), ha noi, viet nam email: nguyensonghua@gmail.com nguyen thi hai yen college of economics, vinh university (vu), vinh city, viet nam email: nthyen@vinhuni.edu.vn nguyen dang que national academy of public administration (napa), ha noi, viet nam email: dangquenapa@gmail.com corresponding author: nguyen thi xuan huong* recently, effective agricultural policies necessitate sustainable development in the agricultural sector, which necessitates frequent research and the attention of policymakers. consequently, this study investigates the effect of agricultural restructuring policies on agricultural import, agricultural export, agricultural employment, agricultural irrigation land, and agricultural land on the sustainable development of agriculture in vietnam. from 1991 to 2021, the researchers extracted secondary data from secondary sources such as world development indicators (wdi). the researchers also used the non-linear autoregressive distributed lag (nardl) method to examine the relationships between the variables. the results revealed that agricultural restructuring policies regarding agricultural import, agricultural exports, agricultural employment, agricultural irrigation land, and agricultural land have a positive correlation with vietnam's agriculture's sustainable development. the research assists policymakers in formulating regulations for achieving sustainable agricultural development by implementing effective agricultural restructuring policies. key words: agricultural restructure policies, agricultural import, agricultural exports, agricultural employment, agricultural irrigation land, sustainable development in agriculture. 1. introduction agriculture is no longer one of the most significant sectors of the vietnamese economy. however, the sector accounts for only 8% of total employment in the country. agriculture still employs more than fifty percent of the country's workforce, but in terms of production value, agriculture was outperformed by both services and agriculture in the early 1990s. to this day, in the late 1980s, agriculture remains one of the primary sources of basic materials for the processing industries and a significant contributor to the nation's overall exports. following years of rice shortages, vietnam resumed exporting rice. most of the nation's lowlands and a smaller portion of its highlands are perpetually devoted to agriculture. the mekong river delta, the southern terrace region, and the red river delta are principal agricultural regions. low production may be observed in the typhoonvulnerable coastal terrain of the central core. the formerly low-productivity central highlands region has been intensively cultivated with varying degrees of success since 1975. in 2023, the agriculture industry achieved all predetermined goals, including a growth rate of 3.36 percent, a record for many recent years. animal husbandry and farming increased by 2.88 percent, fisheries by 2.88 percent, and forestry by 6.13 percent. vietnam's forests cover 42.02 percent of the country's land (nawaz et al., 2019; ngoc et al., 2021). over 73% of the nation's communes met the requirements for rural regions. exports of agriculture-forestry-fishery products reached a new high of 53.22 billion dollars, a 9.3 percent increase over 2021 (linderhof et al., 2019). the production structure of the industry was continuously enhanced and made more efficient following the market. vietnamese agricultural products are consumed in a growing number of categories and products. while the government and industry worked to eliminate trade barriers promptly, more emphasis was placed on the domestic market, increasing exports of agricultural, forestry, and fisheries products (hanif et al., 2022; tran et al., 2022). vietnam's economy will continue to encounter challenges and obstacles in 2023. these obstacles include inflationary pressure, a rapid and substantial increase in production costs, the adverse effects of the rapid changes in the climate around the world, changes in demand and new consumption habits, fewer rain issues, land cultivation as a result of adverse weather conditions, land irrigation due to water issues, and most notably the effects of the russian-ukrainian conflict (loc et al., 2021; vu & goto, 2020). considering the abovementioned issues, this study aimed to examine the vietnam agriculture industry in light of these factors. in addition, the agriculture industry targets export sales of 54 billion usd and a growth rate of 3% in 2023. nationally, at least 270 districts and 78% of communes are classified as rural communities. figure 1 depicts the agricultural gdp of vietnam. there is much literature on sustainable agriculture development in vietnam; however, this study seeks to fill several gaps. these gaps include: 1) even though sustainable development, particularly in the context of mailto:huyenmt@bafu.edu.vn mailto:xuanhuongfuv@gmail.com mailto:nguyensonghua@gmail.com mailto:nthyen@vinhuni.edu.vn mailto:dangquenapa@gmail.com agbioforum, 25(1), 2023 | 50 huyen, huong, song, yen and que. — agricultural restructure policy in vietnam and practical application for sustainable … agriculture, has been studied extensively from different perspectives, at different times, and in different economies. figure 1: gdp from agriculture in vietnam source: the global economy it has not yet reached its full potential because there are numerous of its aspects, especially in the context of agribusiness. 3) jerzak and milk-krajewska (2020) and smol et al. (2020) investigated whether there is a connection between agriculture imports and the achievement of sustainable development of the agriculture industry; however, the current study will also investigate this issue alongside other variables agriculture raw material exports, agriculture employment, agriculture irrigated land, and agriculture land in vietnam with a new sample set. 4) mancini et al. (2019) and villers (2013) investigated whether or not there is a relationship between agriculture raw material exports and agriculture sustainable development. the current study will also investigate this question and other variables such as raw material imports, agriculture employment, agriculture irrigated land, and agriculture land with a new sample set. 5) yurui et al. (2021) and boto-alvarez and garcafernández (2020) investigated whether there is a relationship between agriculture employment and sustainable agriculture development; however, the current study will also investigate this relationship, along with other variables such as agriculture raw material imports, agriculture raw material exports, agriculture irrigated land, and agriculture land in vietnam with a new sample set. 6) alcamo (2019) and duan et al. (2019) investigated whether there is a connection between agriculturesustainable development and agriculture-irrigated land; however, the current study will also focus on this variable in addition to others. imports of agriculture raw materials, exports of agriculture raw materials, employment in agriculture, and agricultural land with a new sample set. 7) jurjevi et al. (2019) and arora et al. (2019) investigated whether there is a connection between agriculture land and sustainable agriculture development; however, the current investigation will also work on it alongside other variables such as agriculture raw material imports, agriculture raw material exports, agriculture employment, and agriculture irrigated land with a new sample set. the current investigation is of considerable importance. 1) agriculture sustainable development is one of the most significant topics of the modern era; this study will emphasize the need to investigate it, especially in vietnam. 2) although there is a great deal of literature on agriculture sustainable development, the present study will add to the literature on the subject in the context of vietnam; 3) it will provide a guideline and assistance to agriculture sustainable development-related professionals to review and upgrade policies to provide more logical solutions for achieving agriculture-related sustainable development in vietnam. 2. literature review globalization has impacted nearly every aspect of society, including the business sector (hanif et al., 2022). each economic sector is responding to globalization in its unique fashion. some sections, such as agriculture, are associated with the need for existence and are crucial for survival and long-term development. the same holds for agriculture. almost every nation imports agricultural products (nawaz et al., 2021; yuan et al., 2022). in this context, jerzak and miglak-krajewska (2020) investigated whether importing vegetable protein feed influences the sustainable development of the nation's agriculture. the population of eu economies was examined in this investigation. the research is empirical. as a sample, the study utilized information from 180 selected properties. the sample data span the years 2010 through 2018. the data sample is derived from direct interviews. according to the analysis, agriculture is the country's backbone with the most verdant territory. in addition, the importation of vegetable proteinbased animal feed results in an increase in production capacity, impacting the countries' agricultural sustainability. minerals are an essential component of the agricultural process. the ecological concept has shifted the global emphasis toward minerals. sustainable development is central to the green concept. in this context, smol et al. (2020) investigated whether mineral resources management in the context of export or import results impacts the country's sustainable agricultural development. according to the analysis results, minerals play a crucial role in agriculture. the proper or improper administration of the minerals would impact the nation's circular economy, thereby affecting sustainable development. a nation like turkey has an abundance of verdant land. such a natural gift can significantly aid the nation's transition to sustainable development through the prudent use of agricultural resources. in this context, yilmaz et al. (2019) investigated the economic aspects of manure management. the investigation was conducted on the turkish populace. the research is empirical. the focus of the research was on the livestock of turkey. according to the analysis results, livestock and agriculture are interconnected. in addition, the correct management of manure imports affects the country's economy, which contributes to the country's sustainable development. every human-made product in the world depends on agbioforum, 25(1), 2023 | 51 huyen, huong, song, yen and que. — agricultural restructure policy in vietnam and practical application for sustainable … various factors, including basic material, packaging, and finishing. the raw material is the foundation of the complete production process. it is essential as the basic material results in the beginning of the production process. in terms of sustainable development, the country that exports basic materials, especially agricultural products, has a more significant impact. in this context, mancini et al. (2019) investigated whether basic materials play any role in agriculture's sustainable development. the study evaluated the raw materials using the raw material scoreboard. the analysis results suggested that essential materials are the foundation of agriculture. in addition, they are exporting agricultural raw materials, resulting in financial support for the country's economy and sustainable development. human health is one of nature's greatest gifts. a healthier existence is superior. the agriculture industry is the foundation of the country's public health system. countries periodically restructure their agriculture policies to ensure the sustainability of the agri-market, which leads to sustainable development. in this context, villers (2013) investigated whether the restructuring of agri markets in terms of policies and accordance with the era's needs influences the country's sustainable agriculture development. according to the findings, restructuring agri markets in terms of exports or imports affects the country's economy, which benefits the agriculture industry. the agriculture industry's long-term viability is determined by the overall performance of the companies that engage in agricultural products. the appropriate accounting system is a crucial component of the company. with an eye toward the economy, zakirova et al. (2020) labored on the accounting system of the agricultural organization. according to the investigation findings, an agricultural organization's appropriate accounting system improves the agriculture industry's overall performance. in addition, karwacka et al. (2020) worked on agri-food sector sustainable development. any enterprise's longterm viability is contingent on several factors, including industry import, export, and other factors. the greater the agri industry's export of agricultural products, the more significant its contribution to the economy, which fostered the industry's sustainable growth. employment is one of the most prevalent problems in the current era. countries throughout the world continue to prioritize initiatives that result in the creation of employment. employment creation is one of the primary drivers of foreign direct investment. governments are responsible for the employment creation of their respective populations. the higher the standard of living in a country, the greater its employment opportunities. the industries operating in the country are ultimately responsible for creating jobs. agriculture is one of the industries that involve its proprietors and creates employment opportunities for the less educated members of society. the creation of jobs is a component of sustainable development. according to the literature, the agriculture industry creates jobs. yurui et al. (2021) investigated sustainable development from an ecological perspective in this context. the agriculture industry degrades the environment in numerous ways, including using chemicals. the implementation of these new ideas would lead to the creation of new jobs as a consequence of the agricultural industry's progress. similarly, the adoption of green concepts to reduce environmental degradation would not only benefit the environment, but it would also generate employment opportunities. numerous nations have formulated their plans with sustainable development in mind. boto-alvarez et al. (2020) worked on implementing the 2030 agenda for sustainable development in this context. the investigation took place in spain. according to the investigation's findings, agriculture plays a crucial role in achieving sustainable development by mitigating environmental degradation and bolstering the economy by creating more employment opportunities. the world's countries should give special attention to achieving sustainable development because it will create jobs. the animal industry is one of the most important facets of society that agriculture affects. the animal industry would be affected by any change in the agriculture industry. introducing new initiatives in the agriculture industry would also cause a shift in the animal industry and generate more employment opportunities. keeling et al. (2019) examined the relationship between animal welfare and sustainable development in this context. according to the study's findings, the development of the agriculture industry would impact the animal industry and lead to employment opportunities. further, the study suggested that countries should prioritize the improvement of the agriculture industry because it will lead to more jobs and help the economy achieve sustainable development. the agriculture industry is a significant contributor to the country's economy for various reasons, including its contribution to the production of human necessities, i.e., food, and economic growth through exports. the irrigated land portion of the country is where the agriculture industry is based. every nation consists of a mixture of irrigated and unirrigated land. over the past decade, the world has introduced more real estate ventures on nonirrigated land. in less developed nations, irrigated land is being ignored for the development of housing communities. the action would negatively impact the country's sustainable development. a correlation exists between the attainment of sustainable development objectives and irrigated agricultural land. there are several reasons for the non-irrigated land, including the absence of modern technology and natural resources such as water. in this context, alcamo (2019) investigated whether the agriculture industry in the form of irrigated land has any relationship with sustainable development. one of the most important sources of irrigation is water. in developing economies, the lack of available water resources is one of the primary factors for agbioforum, 25(1), 2023 | 52 huyen, huong, song, yen and que. — agricultural restructure policy in vietnam and practical application for sustainable … the absence of irrigated land. the increasing proportion of unirrigated land signals that sustainable development objectives are not being met. the world should prioritize appropriate water utilization to prevent its misuse and achieve sustainable development in the agriculture industry. proper management is the only way to protect a country's natural resources. the absence of management would result in the depletion of natural resources and impede the realization of sustainable development. in this context, duan et al. (2019) examined the agricultural industry from water, climate, and food perspectives to determine if they are associated with sustainable development. the investigation revealed that all factors, including water, food, and climate, are interconnected. these are the primary pillars of the agricultural sector. with water availability, the batter is the ultimate indicator of agricultural prosperity through increasing output. as a consequence of these factors, irrigated land is improved, affecting sustainable development by enhancing the agriculture industry. in addition, isayev et al. (2022) examined whether the availability of sufficient resources coupled with the implementation of modern irrigation technologies results in practical, sustainable development in the context of agricultural prosperity. the results revealed that both the availability of abundant natural resources and the adoption of modern technologies result in increased agricultural production, contributing to sustainable development in the agriculture industry. the agricultural industry revolves around land and its optimal utilization. land utilization for agricultural purposes is among the most significant distinctions between developed and developing economies. in developing economies, ancient methods of agriculture are still used, resulting in decreased output. in contrast, adopting modern tools and techniques in developed economies results in a sustainable agriculture industry. in this context, jurjevi et al. (2019) examined whether the appropriate implementation of information technology in the agriculture sector contributes to sustainable development. the investigation took place in serbia. according to the investigation findings, globalization has allowed the globe to adopt modern agricultural technology. the agricultural industries of nations that incorporate technologies from the modern era are sustainable. in contrast, the agriculture industry struggled in the countries that failed. moreover et al. (2019) focused on achieving agenda 2030's sustainable development objectives. according to the study, agriculture is one of the sectors influencing numerous other aspects of the nation, including food, natural resources, land, the environment, and the economy. to achieve sustainable development objectives, countries should emphasize the proper administration of the agriculture sector and the proper use of agricultural land. the correct use of agricultural land would safeguard natural resources, the environment, and the agricultural land itself. in addition, mehrabi et al. (2020) examined the agriculture industry from the perspective of the livestock industry and concluded that improvements in the agriculture industry would have an impact on the livestock industry. countries should place a greater emphasis on agricultural land because it provides sustenance for livestock, resulting in increased production and industry sustainability. 3. research methods this study investigates the effect of agricultural restructuring policies on agricultural imports, agricultural exports, agricultural employment, agricultural irrigation land, and agricultural land on vietnam's agriculture's sustainable development. from 1991 to 2021, the researchers extracted secondary data from secondary sources such as wdi. the researcher developed the following study equation: 𝑆𝐷𝐴𝑡 = 𝛼0 + 𝛽1𝐴𝑅𝑀𝐼𝑡 + 𝛽2𝐴𝑅𝑀𝐸𝑡 + 𝛽3𝐸𝐴𝐺𝑖𝑡 + 𝛽4𝐴𝐼𝐿𝑡 + 𝛽5𝐴𝐺𝐿𝑡 + 𝑒𝑡 (1) where; sda = sustainable development in agriculture t = time period armi = agricultural raw material import arme = agricultural raw material export eag = employment in agriculture ail = agricultural irrigated land agl = agricultural land sustainable development in agriculture served as the study's primary variable, with the crop production index as a proxy. in addition, agricultural restructure policies were used as independent variable proxies for agricultural raw material import (percentage of merchandise import), agricultural raw material export (percentage of merchandise export), employment in agriculture (percentage of total employment), agricultural irrigated land (percentage of total agricultural land), and agricultural land (percentage of land area). these proxy servers are listed in table 1. table 1: variables with measurements s# variables measurement sources 01 sustainable development in agriculture crops production index wdi 02 agricultural restructure policy agricultural raw material import (% of merchandises import) wdi agricultural raw material export (% of merchandises export) wdi employment in agriculture (% of total employment) agricultural irrigated land (% of total agricultural land) wdi wdi agricultural land (% of land area) wdi the researchers examine the minutiae of the variables using descriptive statistics. in addition, researchers use a correlation matrix to examine the correlation between the constructs. in addition, using the augmenteddickey–fuller test (adf) and the phillips–perron (pp) tests, the researchers examine the unit root among variables required to deploy a suitable model. the equation is given as follows: agbioforum, 25(1), 2023 | 53 huyen, huong, song, yen and que. — agricultural restructure policy in vietnam and practical application for sustainable … 𝑑(𝑌𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑌𝑡−1 + 𝑑(𝑌𝑡(−1)) + ɛ𝑡 (2) in addition, the researchers examine the model's cointegration using the ardl bound test co-integration method. the researchers then utilized the ardl model to examine the association between variables. it is the most suitable method when some variables are stationary at i (0) and others at i(1) (sohail et al., 2021). in addition, the researchers utilized this method because it controls the severe impacts of heteroscedasticity and autocorrelation on estimations and yields accurate results (qamruzzaman & jianguo, 2018). the following expression describes the method: ∆𝑆𝐷𝐴𝑡 = 𝛼0 + ∑𝛿1∆𝑆𝐷𝐴𝑡−1 + ∑𝛿2∆𝐴𝑅𝑀𝐼𝑡−1 + ∑𝛿3∆𝐴𝑅𝑀𝐸𝑡−1 + ∑𝛿4∆𝐸𝐴𝐺𝑡−1 + ∑𝛿5∆𝐴𝐼𝐿𝑡−1 + ∑𝛿6∆𝐴𝐺𝐿𝑡−1 + 𝜑1𝑆𝐷𝐴𝑡−1 + 𝜑2𝐴𝑅𝑀𝐼𝑡−1 + 𝜑3𝐴𝑅𝑀𝐸𝑡−1 + 𝜑4𝐸𝐴𝐺𝑡−1 + 𝜑5𝐴𝐼𝐿𝑡−1 + 𝜑6𝐴𝐺𝐿𝑡−1 + ɛ𝑡 (3) the researchers also applied the nardl approach to check the linkages among the variables due to the study's purpose of examining the asymmetric linkage among ail, agl, and sda. the asymmetric function is given below: 𝑆𝐷𝐴 = 𝑓(𝐴𝑅𝑀𝐼, 𝐴𝑅𝑀𝐸, 𝐸𝐴𝐺, 𝐴𝐼𝐿+, 𝐴𝐼𝐿−, 𝐴𝐺𝐿+, 𝐴𝐺𝐿−) (4) so, the empirical approach to the asymmetric association is established below: 𝑆𝐷𝐴𝑡 = 𝛼0 + 𝛽1𝐴𝑅𝑀𝐼𝑡 + 𝛽2𝐴𝑅𝑀𝐸𝑡 + 𝛽3𝐸𝐴𝐺𝑡 + 𝛽4𝐴𝐼𝐿𝑡 + + 𝛽5𝐴𝐼𝐿𝑡 − + 𝛽6𝐴𝐺𝐿𝑡 + + 𝛽7𝐴𝐺𝐿𝑡 − + 𝑒𝑡 (5) hence, the asymmetric linkages investigation among ail, agl, and sda also demands a partial sum of positive and negative changes among constructs. these changes are mentioned below: 𝐴𝐼𝐿+ = ∑ 𝛥𝐴𝐼𝐿𝑖 +𝑡 𝑖=1 = ∑ max (𝛥𝐴𝐼𝐿𝑖 𝑡 𝑖=1 0) (6) 𝐴𝐼𝐿− = ∑ 𝛥𝐴𝐼𝐿𝑖 −𝑡 𝑖=1 = ∑ min (𝛥𝐴𝐼𝐿𝑖 𝑡 𝑖=1 0) (7) 𝐴𝐺𝐿 = ∑ 𝛥𝐴𝐺𝐿𝑖 +𝑡 𝑖=1 = ∑ max (𝛥𝐴𝐺𝐿𝑖 𝑡 𝑖=1 0) (8) 𝐴𝐺𝐿− = ∑ 𝛥𝐴𝐺𝐿𝑖 −𝑡 𝑖=1 = ∑ min (𝛥𝐴𝐺𝐿𝑖 𝑡 𝑖=1 0) (9) therefore, asymmetric linkages among ail, agl, and sda joined with the other association among variables and established the equation for the non-linear ardl model given below: ∆𝑆𝐷𝐴𝑡 = 𝛼0 + ∑𝛿1∆𝑆𝐷𝐴𝑡−1 + ∑𝛿2∆𝐴𝑅𝑀𝐼𝑡−1 + ∑𝛿3∆𝐴𝑅𝑀𝐸𝑡−1 + ∑𝛿4∆𝐸𝐴𝐺 + ∑𝛿5∆𝐴𝐼𝐿𝑡−1 + + ∑𝛿6∆𝐴𝐼𝐿𝑡−1 − + ∑𝛿7∆𝐴𝐺𝐿𝑡−1 + + ∑𝛿8∆𝐴𝐺𝐿𝑡−1 − + 𝜑1𝑆𝐷𝐴𝑡−1 + 𝜑2𝐴𝑅𝑀𝐼𝑡−1 + 𝜑3𝐴𝑅𝑀𝐸𝑡−1 + 𝜑4𝐸𝐴𝐺𝑡−1 + 𝜑5𝐴𝐼𝐿𝑡−1 + + 𝜑6𝐴𝐼𝐿𝑡−1 − + 𝜑7𝐴𝐺𝐿𝑡−1 + + 𝜑8𝐴𝐺𝐿𝑡−1 − + ɛ𝑡 (10) 4. research findings the researchers examine the minutiae of the variables using descriptive statistics. according to the results, sda averaged 74.436 percent, armi was 3.150 percent, and arme was 2.683 percent. in addition, the results revealed that the average percentages of eag, ail, and agl were 54.178 percent, 56.942 percent, and 31.208 percent, respectively. these numbers are presented in table 2. table 2: descriptive statistics variable obs mean std. dev. min max sda 31 74.436 23.439 35.01 108.741 armi 31 3.150 0.358 2.398 3.879 arme 31 2.683 0.746 1.752 4.357 eag 31 54.178 11.292 36.244 70.880 ail 31 56.942 0.355 56.382 57.527 agl 31 31.208 6.275 20.741 41.010 in addition, researchers use a correlation matrix to examine the correlation between the constructs. the results revealed that agricultural restructuring policies regarding agricultural import, agricultural exports, agricultural employment, agricultural irrigation land, and agricultural land have a positive correlation with vietnam's agriculture's sustainable development. these numbers are presented in table 3. table 3: matrix of correlations variables sda armi arme eag ail agl sda 1.000 armi 0.034 1.000 arme 0.189 0.543 1.000 eag 0.977 0.011 0.126 1.000 ail 0.995 -0.013 -0.211 -0.986 1.000 agl 0.981 0.051 -0.218 -0.960 0.981 1.000 in addition, the researchers examine the unit root among variables, which is required to deploy an appropriate model using adf and pp tests. according to the results, the sda, armi, ail, and agl are stationary at level, while the arme and eag are stationary at first difference. these numbers are shown in table 4. table 4: unit root test adf pp series level first difference level first difference sda -2.901*** ----3.102*** --- armi -2.377*** ----3.009*** --- arme ----4.392*** ----5.393*** eag ----4.869*** ----5.677*** ail -3.029*** ----3.218*** --- agl -3.104*** ----3.282*** --- in addition, the researchers examine the model's cointegration using the ardl bound test co-integration method. the results demonstrated that the calculated tstatistics value of 5.49 is greater than the critical values. these results suggest that co-integration exists. these numbers are shown in table 5. table 5: bound test of non-linear ardl f-statistics lower bound upper bound decision linear ardl 0.564 1.765 2.464 no co-integration asymmetric ardl 5.493 1.373 3.291 co-integration the researchers also utilized the nardl method to examine the relationships between the variables. the results revealed that agricultural restructuring policies regarding agricultural import, agricultural exports, agricultural employment, agricultural irrigation land, and agricultural land have a positive correlation with vietnam's agriculture's sustainable development. these relationships agbioforum, 25(1), 2023 | 54 huyen, huong, song, yen and que. — agricultural restructure policy in vietnam and practical application for sustainable … are listed in table 6. table 6: non-linear ardl results variables coefficients std. err. t-statistics c 0.784 0.210 3.733 sda (-1) 1.021 0.432 2.363 armi (-1) 2.392 0.477 5.015 arme (-1) 2.101 0.476 4.414 eag (-1) 0.786 0.192 4.094 ail-p (-1) 2.101 0.474 4.432 ail-n (-1) 3.775 0.657 5.746 agl-p (-1) 3.657 1.009 3.624 agl-n (-1) 3.211 1.091 2.943 adj. r square 0.622 f-statistics 45.437 prob.(f-statistics) 0.001 5. discussions the results indicated that agricultural raw material imports are positively associated with agricultural sustainability. according to gil et al. (2019), if a nation has effective business ties with other nations and producers can import agricultural raw materials, its agricultural resources can be replenished at any time, and its productivity can be maintained. agriculture's sustainable development is contingent on the steady expansion of agricultural yields. these findings are consistent with linser and lier's (2020) conclusion that the ability to import agricultural raw materials when required enables farmers to complete agricultural resources and implement agricultural production plans effectively. consequently, agricultural production and agricultural development are on the rise and sustainable. the results indicated that agricultural raw material export positively correlates with sustainable agricultural development. these results concur with xu et al. (2022), which suggests that if a country has abundant agricultural raw material resources and international demand for raw materials, it can prevent the loss of agricultural raw materials. in this scenario, the nation can also earn foreign currency and invest it in agricultural development. thus, higher profitable crop production leads to agricultural sustainability. these results are consistent with duan et al. (2019), who examine the function of agricultural raw material exports in agriculture's sustainable development. it asserts that exporting agricultural raw materials increases the demand for domestic agricultural production and motivates farmers and ranchers. therefore, an increase in agricultural raw material imports facilitates sustainable agricultural development. the results indicated that agricultural employment is positively associated with agricultural sustainability. these findings concur with loizou et al. (2019), who assert that when the agricultural hr policy is designed to ensure the employment of a more significant number of workers and to retain agricultural experts, there is consistency in agricultural operations and an increase in agricultural efficiency. consequently, agricultural development is sustainable, and the agricultural sector produces more crops. these findings are consistent with ronzon et al.'s (2020) assertion that agricultural development is more productive and sustainable when more people are employed to perform agricultural functions and pertain to the agricultural sector. the results indicated that irrigated agricultural land positively correlates with agricultural sustainability. these results are consistent with komilova et al. (2019), who note that if there is a larger area of land where crops can be watered through pipes, canals, sprinklers, or artificial sources, there is a shorter wait for rain or a decrease in crop loss due to lack of rain. therefore, sustainable agricultural development is feasible. these findings are consistent with wang et al.'s (2020) conclusion that the increased use of irrigated land for agricultural purposes safeguards agricultural production and promotes the growth of the agricultural industry at a sustainable rate. the results indicated that agricultural land is positively associated with agricultural sustainability. these findings concur with hamidov and helming's (2020) conclusion that an increase in the land area owned by agricultural enterprises increases agricultural productivity and sustains agricultural development. these findings are supported by angelaks et al. (2020), who note that the agriculture industry develops at a sustainable rate of firms involved in agriculture owning a larger land area and the right to use that land for agricultural purposes. 6. policy implications this study provides guidelines on how the government or farmers can accomplish sustainable agricultural development. the study recommends policies promoting importing basic agricultural materials for the agricultural industry to achieve sustainable development. to ensure agriculture's sustainable development, there is also a guideline mandating that authoritative entities promote agricultural raw material exports. the study also suggests that the agriculture employment rate should be increased to accomplish agriculture's sustainable development. the research assists policymakers in formulating regulations for achieving sustainable agricultural development by implementing effective agricultural restructuring policies. to achieve agriculture's sustainable development, the study suggests that an agricultural policy to expand irrigated agricultural land must be implemented. in addition, the study indicates that there should be an increase in the area of irrigated agricultural land. it would result in agricultural sustainability. 7. conclusion this study aims to analyze the role of agricultural structural policies such as import and export of primary raw materials, agricultural employment, agricultural irrigated land, and agricultural land in agriculture's sustainable development. vietnam's data were utilized for the empirical analysis. agricultural raw material import and export, agricultural employment, agricultural irrigated land, and agricultural land were found to positively correlate with agriculture's sustainable development, as deduced by the research's findings and analysis. suppose agricultural raw material imports are permitted in a country agbioforum, 25(1), 2023 | 55 huyen, huong, song, yen and que. — agricultural restructure policy in vietnam and practical application for sustainable … and farmers are able to take advantage of this facility. in that case, the results indicate that farmers can replenish agricultural raw materials and maintain agricultural production, leading to the sustainable development of agriculture. the results indicated that exporting agricultural raw materials increases the demand for domestic agricultural products and that increasing agricultural production contributes to agriculture's sustainable development. according to the research, when more individuals are employed in the agricultural sector, agricultural production and development are more sustainable. the results demonstrated that an increase in irrigated land for agricultural purposes improves agricultural functions' efficiency and contributes to agricultural development's sustainability. the study also concluded that the greater the area of agricultural land, the greater the likelihood of agricultural sustainability. 8. limitations and future recommendations limitations are associated with the current research, which should be eliminated in future publications. first, this study examines only agricultural structural policies, such as agricultural raw material import and export, agricultural employment, agricultural irrigated land, and agricultural land's role in agriculture's sustainable development. future researchers should also investigate the impact of economic conditions, the natural resource price index, domestic demand, etc., on agriculture's sustainable development. vietnam, a developing nation with distinctive agricultural policies, was the data source for the current study. for generic results, researchers should acquire data from multiple countries. references alcamo, j. 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in most instances, these individuals were unaware of the environmental consequences of their decisions until the hazards materialized. the management accounting system facilitates informed decision-making and enables businesses to meet environmental goals. therefore, the purpose of the present study was to collect data from iraq's oil and gas industry to examine how integrated managerial accounting systems might lead to improved environmental performance in enterprises by leveraging it infrastructure and capabilities. three hundred and twenty-three respondents were surveyed for the quantitative study. amos was used to conducting structural equation modeling on the data. the research found that both the direct and indirect effects were positive and substantial. this suggests that using integrative technology and management accounting systems in the oil and gas business can lead to environmental conservation. numerous literary and practical merits of the study have been explored. in addition, the limitations and prospects of the study are discussed. key words: integrated management accounting system, environmental performance, it infrastructure, productivity. 1. introduction the environment is an essential part of the corporate world. a company's success or failure can be determined by its environmental practices. the senior management must make informed judgments that positively influence the environment during the decision-making process. a wise judgment must consider all environmental effects of the topic at hand. oil and gas firms are among the industries most impacted by environmental issues. these businesses must comply with environmental management and conservation regulations. in addition, businesses must cut expenses by making prudent judgments to enhance their reputation (falih chichan et al., 2021). environmental exploitation has presented numerous oil and gas corporations with obstacles, including lawsuits and reputational damage. therefore, businesses must be careful when making every day operational decisions. environmentally responsible decision-making is a process that must be followed to attain desirable outcomes (jovanović et al., 2022). data gathering, review, and analysis are elements of the decision-making process. this study examines a method that will enable managers and employees to make quick decisions and monitor environmental performance without encountering numerous obstacles. the study focuses on the janwa group in iraq and is conducted via questionnaires. several papers were analyzed to offer more light on the subject of the investigation. the paper will conclude with recommendations for future research areas that should be prioritized to achieve high environmental performance. many businesses wish to be perceived as environmentally friendly for their reputation and to avoid violating environment management rules. measuring environmental performance during decision-making is difficult (asiaei et al., 2022). it is because the environmental effects of most decisions may not be felt until years later. it is challenging to make ecologically responsible judgments without a good framework to evaluate environmental considerations and hazards. the management accounting system is designed to assist firms in making sound judgments on all daily operations tasks (jovanović et al., 2022). the system provides documents and reports that assist businesses in making decisions based on internal considerations. environmental performance is evaluated based on internal activities and their external influence. an integrated management accounting system will assist the firm in optimizing its environmental performance-maintenance decisions. in recent decades, iraq has witnessed substantial climate change (azooz et al., 2015). the country's temperature has risen dramatically in a short time. iraq is believed to contain one of the world's most significant oil reserves. thus, the extraction, processing, and consumption of oils and fossil fuels contribute to environmental damage and global warming. the nation and the world suffer the consequences of such practices (nasiritousi, 2017). therefore, the nation's oil corporations must improve their business methods and lessen their negative impact on the global environment. however, it is fairly difficult for oil businesses to attain these results, given that they deal with mailto:suh2001971@yahoo.com agbioforum, 24(2), 2022 | 150 al-tamimi. — towards integrated management accounting system for measuring environmental performance the resource that is one of the leading causes of climate change. using its management accounting systems, the business can gather information on sustainable practices and their implementation to address the issue. they can utilize the data to improve their environmental performance. the it infrastructure is renowned for facilitating the rapid acquisition of knowledge and implementing organizational procedures. consequently, this study will investigate the effect of management accounting systems on environmental performance by examining the role of it infrastructure flexibility and it business alignment as mediators. most previous research has been conducted in western culture, restricting the study's applicability. in addition, relatively few researchers have studied the unique framework containing all of these components (antoni et al., 2020; christine, 2019; egbunike et al., 2014; fuzi et al., 2016). further research is required to broaden the approach's applicability to other contexts, such as iraq. there have been questions about the effectiveness of the integrated management accounting system. the primary objective of this article is to determine how effective the management accounting system is at assessing environmental performance. by making wise choices, a corporation can protect itself from the negative repercussions of insufficient environmental conservation (deb et al., 2022). in light of this, the purpose of this article is to demonstrate the necessity for an integrated management accounting system for environmental performance. the report also intends to demonstrate the environmental benefits of deploying it-enabled solutions, particularly for oil industries. as janwa group falls under the oil and gas business category, it is this study's subject. this study aims to demonstrate the necessity of integrating management accounting systems for monitoring environmental performance. the following are the research questions for the current study. 1. how does the integrated management accounting system impact a firm's environmental performance? 2. what is the mediation effect of it technical infrastructure flexibility between an integrated management accounting system and a firm's environmental performance? 3. what is the mediation effect of it business alignment between an integrated management accounting system and a firm's environmental performance? the report is essential for businesses seeking to enhance their environmental performance. in recent years, environmental concerns have been cited as one of the primary reasons why corporations are losing customers and market value. using the management accounting system, corporations can prevent losses due to environmental exploitation as technology advances (deb et al., 2022). the system focuses on the influence of internal causes on external environmental consequences. therefore, the study is crucial for businesses that wish to enhance their operations by enhancing their services using technological means. it is also vital to highlight that most businesses do not understand how the accounting system operates. this article explains how businesses can use the management accounting system to enhance their operations and decision-making. in addition, the work is useful for future scholars who focus on the difficulties of employing technology to address environmental issues. this research article fills a void by demonstrating the importance of integrating environmental performance measurements into the management accounting system. future scholars will profit from the publication because it will serve as a foundation for their studies. the study will also include recommendations for areas where future academics can and should concentrate their efforts on enhancing decisionmaking technologies. 2. literature review 1.1 environmental performance according to falih chichan et al. (2021), environmental performance gauges the accomplishment of an organization's environmental goals. companies must comply with environmental management compliance rules and regulations. consequently, organizations establish goals and objectives that facilitate compliance with these rules. a company's environmental performance reveals the extent to which it has achieved its objective, which is to operate in an environmentally responsible manner. several factors influence organizational environmental performance. as staff expects to follow their leaders' directives, poor management substantially influences environmental performance. effective management guarantees that appropriate decisions are made. effective leaders identify environmental issues and devise methods to address them (mayndarto et al., 2021). it becomes impossible to maintain high environmental performance without adequate management. another component influencing environmental performance is technology. for the majority of businesses, technology has enhanced their operational efficiency. however, technology can be a disguised boon. some technological advancements have significant detrimental effects on the environmental side of businesses (gunarathne et al., 2021). the advancements prevent businesses from achieving their environmental goals and objectives. however, several technologies assist businesses in tracking their environmental progress. the technologies assist them in making well-informed decisions to mitigate environmental concerns. additionally, ignorance and carelessness contribute to environmental performance. environmental conservation is a team effort in that all employees must participate (falih chichan et al., 2021). only firms with all employees who are accountable and make well-informed decisions that benefit the environment will exhibit high performance. however, some businesses are uneducated and careless regarding environmental rules and minor behaviors contributing to the progressive degeneration of the agbioforum, 24(2), 2022 | 151 al-tamimi. — towards integrated management accounting system for measuring environmental performance environment. environmental performance measurement allows a business to track its progress. when designing organizational plans, businesses must consider the environmental goals they wish to achieve within a specified time frame. through measuring environmental performance, the company will know what movements it should make to attain its environmental objectives (mayndarto et al., 2021). the purpose of monitoring environmental performance is to guarantee that an organization does not lose sight of its environmental goal. measuring performance will also help organizations pinpoint areas where they have relaxed. organizations must investigate all areas that could affect their environmental objectives and ensure they account for them. measuring environmental performance helps find potential for cost savings. there are expensive choices that can be avoided by embracing environmentally friendly alternatives. according to deb et al. (2022) choices can be easily discovered if a company has a track illustrating how these events are related and how to avoid making expensive judgments. for instance, when a business notices that its performance is deteriorating owing to nonrenewable energy, it may seek out renewable energy sources. additionally, the organization can direct resources to locations with high energy demands and regulate energy changes to prevent excessive, useless usage. 1.2 theoretical background: environmental sustainability through diffusion of innovation theory the diffusion of innovation theory can be used to explain the conceptual framework of the present study. according to the theory, spreading innovation entails the gradual dissemination of innovation through specialized channels among the participants of a social system. consequently, it is a mechanism that spreads innovation from its discovery source to its adaptor. this process occurs in space as a collaborative endeavor. it must fit within the innovation category, be conveyed via particular channels, be accepted by members of a social system, and account for the duration of the time element (sahin, 2006). first, sustainability can be viewed as an innovative practice that progressively spreads throughout society as individuals adopt the concept. as it progressively spread among community members and companies, they began to adopt it (dibra, 2015). in the current study, the researcher hypothesized that the objective of sustainability could be attained by a flexible infrastructure and the incorporation of it into the business via the management accounting system. according to the researcher, sustainability has propagated and reached the user, the organization in this example, through management accounting systems. afterward, the organization's members embrace it via the technological infrastructure and flexibility integrated into company operations. the technological infrastructure and its adaptability facilitate the organizations and its members embrace of the concept of sustainability. the management accounting system facilitates the dissemination of ideas by providing information to the organization's members. throughout time, businesses incorporate and embrace essential change through organizational behavior. in this case, "change" refers to sustainable practices for improved sustainability. (khan et al., 2022; mustonen‐ollila et al., 2003; sartipi, 2020). 1.3 integrated management accounting system and environmental performance by handling information from several external and internal sources in an up-to-date, efficient, and structured manner, the management information system can assist management and decision-makers in reducing the extent of existing environmental problems. consequently, by providing managers with the essential supporting data at the appropriate time, an organization's effective utilization management information system can help reduce external anomalies' impact on improving management's knowledge of environmental dynamics. similar to how corporations are contemplating the relevance of energy management to lessen their reliance on energy consumption or employ renewable, environmentally friendly energy sources to meet their energy needs (adusei, 2018; alaeddin et al., 2018). thus, the enterprises will be able to meet the needs of their customers by employing sustainable production methods, limiting environmental pressures, and adhering to national and international regulations. thus, it can be inferred that the management accounting system aims to identify the carbon consumption of businesses and provide information regarding the need to implement energy optimization (alaeddin, 2019; fuzi et al., 2016). consequently, a management accounting system can help businesses widen their approach to embracing environmental quality and improve their environmental performance. integrating environmental accounting into management accounting systems can help businesses profit from rising ecological demands and opportunities to improve environmental practices through efficient accounting information processes. it also facilitates business decisions by collecting pertinent information regarding an organization's reliance on energy and its contribution to harmful carbon emissions resulting from energy consumption (asiaei et al., 2022; haseeb et al., 2019). organizations can adjust to this condition of uncertainty by building and implementing cutting-edge management systems that continually account for the rising complexity of the business world and monitor the organization's internal responses to this complexity. the need to incorporate qualitative information from the company's functional environment to ensure the successful execution of the company's strategy led to the development of strategic management accounting approaches. the management accounting systems that are strategically positioned in acquiring and delivering the necessary data to managers would facilitate the intake and use of all such agbioforum, 24(2), 2022 | 152 al-tamimi. — towards integrated management accounting system for measuring environmental performance data for holistic management of performance among the three components, as sustainability is a multidimensional concept requiring effectiveness in all three components: social, economic, and environmental (christine, 2019; egbunike et al., 2014). management's emphasis on environmental issues fuels the company's capacity to establish a corporate sustainability strategy. by basing their proactive strategies on environmental performance indicators, companies with proactive strategies improve their environmental performance. every organization must have a corporate sustainability strategy to boost its sustainability (latan et al., 2018). h1: traditional mas has a significant impact on a firm's environmental performance h2: strategic mas has a significant impact on a firm's environmental performance 1.4 mediation of it-environmental management integration integrating information technology into environmental management procedures can improve their sustainability performance. the environmental focus of a company enhances the effect of information technology proficiency on this incorporation. information technology can alter business procedures and capacity to pursue environmental management and sustainability. integrating it into environmental management processes is a complementary capability that describes how well an organization integrates and employs it to modify environmental management processes. this change based on information technology suggests that the company's environmental management systems will be broadened, improved, made more efficient, and easily modified. the alteration of environmental management procedures using it can affect these systems' expansion, improvement, adaptability, and efficiency to improve environmental performance (wang et al., 2015). according to schniederjans et al. (2016), improving environmental performance requires adding environmental factors into standard product development and production processes, which increases the complexity of decisions and processes. advanced technologies can provide effective solutions for environmentally friendly product design, manufacturing, and maintenance methods that limit the use of natural resources and harmful pollutants over the product's lifetime. additionally, via the use of technology, the process of gathering and analyzing data to optimize the use of energy, control the quality of water and air, and manage metals can be improved (antoni et al., 2020; junior et al., 2018; li et al., 2020). therefore, when firms adopt a comprehensive externally oriented management accounting system that is driven by strategy and provides financial and non-financial data that can assist the management in developing and tracking the firm's strategy efficiently, they can use their it infrastructure to convert the information into an improved and more effective overall performance. in addition, an efficient strategic management accounting system incorporates competitor information that can help the firm obtain a competitive advantage. through the employment of it infrastructure and a management accounting system, the organization can examine how its competitors are implementing sustainable business practices using it infrastructure and it integration, enhancing its overall performance (ojra et al., 2021). it infrastructure is a firm's fundamental capability since it facilitates the organization's ability to modify business processes and adapt quickly to opportunities and risks in the environment. they can expedite access to new information from the external world, allowing the firm to adjust quickly to shifting client preferences and trends. consequently, the firm can enhance its competitive edge and performance by adopting trends quickly. flexible infrastructure facilitates incorporating sustainability practices into corporate activities, improving environmental performance (hou, 2020). before management can make any judgments, a large amount of data must be gathered and processed due to the new, fastchanging business environment. the relationship between management accounting systems and information technology is pertinent (pervan et al., 2019). as a result, most businesses adopt integrated information systems to support management accounting systems. implementing and aligning the management information system is crucial since it provides managers and staff with vital information for making educated decisions. many aspects and risks are considered when an organization considers introducing technical modifications to a system. the employees' lack of training and proficiency with the new technologies and linked systems is a factor. the pertinent information is required to construct the course for this purpose. training personnel and enhancing their abilities necessitate information that aids in their comprehension of the new system and its use. information is provided by the management accounting system, which might affect the integration and flexibility of it infrastructure. the organization becomes more competent as people become trained and skilled in the product. an efficient management system can positively influence managers' actions, resulting in improved technological change implementation decisions (pedroso et al., 2020). research indicates that the integrated, collective, timely, and broader scope information provided by management accounting systems, including qualitative, quantitative, internal, and external information, is essential for the planning, monitoring, and controlling required for the integration and use of an advanced design. consequently, when a manager, with the aid of data, chooses better choices and orients toward better judgments by assuming the position of an effective manager, the organization's performance improves. their performance contributes to the organization's improved performance (ismail et al., 2018). h3: it technical infrastructure flexibility mediates the relationship between traditional mas and the firm's environmental performance agbioforum, 24(2), 2022 | 153 al-tamimi. — towards integrated management accounting system for measuring environmental performance h4: it technical infrastructure flexibility mediates the relationship between strategic mas and the firm's environmental performance h5: it business alignment mediates the relationship between traditional mas and the firm's environmental performance h6: it business alignment mediates the relationship between strategic mas and the firm's environmental performance 3. research model the developed framework explains the link between the studied constructs. the design is predicated on the hypothesis stated in this chapter. these are constructed by evaluating prior studies to determine the relationship between variables. the relevant studies and literature have been discussed in the past to explain the link between the variables in support of the research framework and objective. therefore, the framework is created based on the investigations. the model indicates that in the study, traditional management accounting systems and strategic management accounting systems are independent variables that, presumably, can influence the firm's environmental performance, which is the dependent variable, through the mediation of it technical infrastructure flexibility and it business alignment, which are the mediating variables in the current research study. figure 1: research model 4. research methodology this study employs a positivist ontology, an empirical epistemology, and a quantitative data-collecting and analysis methodology. swartz et al. (1998) stated that a methodological framework should be established from a literature review. to assess the impact of it technology on firm performance indicators, most previous research has chosen a methodology and analysis comparable to that of the present study. rather than seeking new insights, the researcher sought to corroborate outcomes given in prior studies; thus, a deductive strategy was utilized. a survey was used to collect data for this study because it allows researchers to draw useful conclusions about a population by surveying a representative sample (vogt et al., 2012). the research population is comprised of janwa group workers. janwa group is one of the leading oil suppliers in iraq. the business has existed for years and has a reputation for being ecologically conscious. the group was targeted because they possessed advanced environmental conservation skills, and the personnel was deemed viable responses because of their kind and skill set. the survey is the fundamental method for analyzing the relationships between variables (cozby, 2009). the company's headquarters will provide a list of management personnel in the various offices of the janwa groupings. this list will serve as the sample frame. then, 450 employees were randomly selected and contacted to gain their consent to participate in the study. 356 individuals agreed to participate. the researcher then e-mailed the cover letter and questionnaire to the respondents. employees were given online questionnaires to express their opinions. the questionnaires allowed the researcher to collect as much data as possible about the subject of inquiry. time savings is the primary advantage of the questionnaire (opara et al., 2021). numerous questionnaires were distributed simultaneously, and the questions were direct. it would take approximately five minutes to complete a questionnaire. the study investigated the connection between integrated management accounting systems and the environmental performance of businesses. in addition, we utilized the mediating variables of it technical infrastructure it-environmental management integration integrated management accounting system traditional mas it technical infrastructure flexibility firm’s environmental performance it business alignment strategic mas agbioforum, 24(2), 2022 | 154 al-tamimi. — towards integrated management accounting system for measuring environmental performance flexibility and it business alignment. a second-degree construct was used to evaluate the integrated management accounting system. this variable was measured using the classic mas and strategic mas constructs. smas was assessed with 14 items and tmas with four. these two variables' elements were taken from visedsun et al. (2021). wang et al. (2015) adopted the dependent and mediational factors. the flexibility of the it technical infrastructure was measured with four factors, it business alignment with six, and environmental performance with four. on a 5-point likert scale, items of measurement were determined. after collecting data from respondents, the researcher examined the data using appropriate software packages such as spss and amos. this software enables researchers to evaluate and test data effectively. 5. results and analysis figure 2 displays the demographic characteristics of this study's respondents. demographic characteristics of a survey provide insight into the nature of respondents. a demographic profile benefits the researcher in terms of the aspects and characteristics of the population that facilitate the generalization of the results. there are 323 total responders, 48% females and 52% males. in addition, age group breakdowns revealed that 81 respondents were aged 20 to 30 years, 96 were aged 31 to 40 years, 97 were aged 41 to 50 years, and 49 were aged 51 to 60. the education level profile reveals that 38% had a bachelor's degree, and 62% had a master's degree or higher. lastly, the respondents' employment experience exceeded one year. forty had less than two years of experience, 140 had between two and five years, 106 had between five and eight years, and the remaining 37 had over eight years of experience. descriptive analysis is extremely important for determining response direction, data normality, and the presence or absence of outliers. according to table 1, the scale endpoints for the likert scale utilized in the current study for data collection were 1 and 5. in addition, the mean values of the provided data are close to 4, indicating that most respondents agreed with the claims about the variable. all study variables adhere to the skewness criterion of -1/+1, as indicated by the skewness reporting of the data. this indicates that the data follows a normal distribution. cronbach's alpha measures an instrument's internal consistency or dependability (heale et al., 2015; mohajan, 2017). the alpha variable is a ratio between 0 and 1. if the value is close to zero, the construct items have low reliability. if it is close to 1 and over 0.65, it is typically indicative of a reliable research instrument (ganesh et al., 2022; geldhof et al., 2014). a value below this threshold necessitates reevaluating the sample size or replacing the materials. figure 2: demographic profile summary agbioforum, 24(2), 2022 | 155 al-tamimi. — towards integrated management accounting system for measuring environmental performance table 1: descriptive statistics n minimum maximum mean std. deviation skewness statistic statistic statistic statistic statistic statistic std. error sma 323 1.00 5.00 3.4799 1.16093 -.656 .136 tma 323 1.00 5.00 3.5359 1.11033 -.810 .136 itb 323 1.00 5.00 3.5480 1.16453 -.759 .136 iti 323 1.00 5.00 3.4241 1.10240 -.548 .136 ep 323 1.00 5.75 3.4311 1.06782 -.235 .136 valid n (listwise) 323 table 2: cronbach alpha variables no. of item cronbach alpha sma 14 .894 tma 4 .917 itb 6 .781 iti 4 .826 ep 8 .489 kmo and bartlett's two-part test measures the strength of the correlations between different study constructs (aftab uddin et al., 2015). the results of the kmo and bartlett's tests are shown in table 3. the kmo indicator indicates sampling adequacy of 95.3%. additionally, bartlett's sphericity is significant. overall, the results in table 3 show that the sample is sufficient and can be used for further analysis. table 3: kmo and bartlett's test kaiser-meyer-olkin measure of sampling adequacy. .953 bartlett's test of sphericity approx. chi-square 13275.150 df 322 sig. .000 in addition, exploratory factor analysis is performed to estimate the variance contributed by each item included in the study. for exploratory factor analysis, the rotated component matrix is employed. individual loading items for each of the research constructs are displayed in this matrix. 0.6 is the threshold value for factor loadings. according to table 4, seven iterations of rotations were required to equalize the variables, and the item loadings exceeded the 0.6 standards. consequently, there is no cross-loading between the objects. table 4: rotated component matrixa component 1 2 3 4 5 sma1 .656 sma2 .685 sma3 .746 sma4 .794 sma5 .689 sma6 .748 sma7 .757 sma8 .693 sma9 .775 sma10 .748 sma11 .781 sma12 .729 sma13 .775 sma14 .754 itb1 .713 itb2 .810 itb3 .776 itb4 .914 itb5 .914 itb6 .919 tma1 .925 tma2 .923 tma3 .801 tma4 .640 iti1 .689 iti2 .690 iti3 .725 iti4 .682 ep1 .674 ep2 .674 ep3 .633 ep4 .782 extraction method: principal component analysis. rotation method: varimax with kaiser normalization. a. rotation converged in 7 iterations. agbioforum, 24(2), 2022 | 156 al-tamimi. — towards integrated management accounting system for measuring environmental performance on the research data, the researcher has additionally undertaken confirmatory factor analysis. estimation of model fitness is a component of cfa. model fitness tests are a collection of tests used to develop a measurement model by validating the interdependence of the model's latent constructs. the model's fitness is validated using cmin/df, gfi, ifi, cfi, and rmsea values. the values for contemporary fitness tests are shown in table 5. in addition to the stated numbers, the threshold ranges for each indication are also provided. table 5 demonstrates that each indicator falls inside the threshold range, indicating that the overall model is suitable for further examination. all indicators comply with the specified threshold levels, as seen. ifi and cfi are more significant than 0.9, i.e., 0.938; rmsea is less than 0.08, i.e., 0.059. table 5: model fitness indicators threshold range current values cmin/df less or equal to 3 2.079 gfi equal or greater .80 .798 cfi equal or greater .90 .938 ifi equal or greater .90 .938 rmsea less or equal .08 0.059 figure 3: cfa construct validity was the second component of the research's confirmatory factor analysis. construct validity evaluates the constructs' dependability based on convergent and discriminant validity values. for concept validity to be established, the data must possess both convergent and discriminant validity. convergent validity is the extent to which items within a construct measure the same notion and have the capacity to yield comparable findings. composite reliability, average variance extracted, and msv are used to quantify convergent validity. the composite reliability assesses the internal consistency of the constructs, whereas the average variance extracted measures the variation between these constructs. msv is a variance variable as well. the cr criterion is 0.70, the ave threshold is 0.5, and msv must be below ave (bagozzi et al., 1991). the data presented in the table demonstrate that cr and ave are within their respective thresholds, whereas msv values are below the reported ave values. table 6 also includes the calculation of discriminant validity. discriminant validity is the distinction between measures of a construct or variants. the self-correlation value of the concept must be greater than the correlation with each of the variables for this validity to be accepted. the numbers in table 6 suggest that both discriminant and convergent validity exist in the data, validating the data's construct validity. agbioforum, 24(2), 2022 | 157 al-tamimi. — towards integrated management accounting system for measuring environmental performance table 6: convergent and discriminant validity cr ave msv sma tma itb iti ep sma 0.905 0.778 0.539 0.882 tma 0.951 0.795 0.348 0.343 0.892 itb 0.915 0.756 0.336 0.484 0.580 0.869 iti 0.929 0.813 0.348 0.408 0.590 0.505 0.902 ep 0.921 0.631 0.320 0.399 0.566 0.542 0.410 0.794 the tests described above demonstrate that the sample size of the data is sufficient, that the model is suitable for further analysis, and that the overall study constructs have internal consistency and reliability validity. these tests are required as they indicate that structural equation modeling can be done on the obtained data and the proposed research model. sem is a multivariate statistical technique that incorporates various types of regression analysis, including factor and multivariate regression analysis. the sem results are shown in table 7. the direct effect measures the variation that an integrated management accounting system produces in the dependent variable of environmental performance. the indirect impact represents the effect of the independent factors on the dependent variable as mediated by itba and itif. table 7 demonstrates that all hypotheses are supported. according to table 7, a single rise in the use of strategic management accounting systems will necessitate a 5.2% improvement in environmental performance. similarly, a 10% rise in adopting classic managerial accounting systems will lead to a 16.4% increase in environmental performance. the impact of sma on ep is moderated by integrated it business alignment by 4.1%, and the impact of tma on ep by 1.2%. similarly, it infrastructure flexibility mediates the 4.6% influence of sma on ep and the 1.8% impact between tm and ep. table 7: hypothesis testing path b significance sma→ep .052 .061 tma→ep .164 .014 sma→itb→ep 0.041 .016 tma→itb→ep 0.012 0.002 sma→iti→ep 0.046 0.014 tma→iti→ep 0.019 0.028 figure 4: sem 6. discussion and conclusion 1.5 discussion the management accounting system is a complicated system that simplifies the environmental management process, detects all environmental-related actions, and assesses their costs. a business mustn't lose sight of its environmental goals. this approach evaluates the cost of each company's environmental impact decision. it enables managers to select the most efficient and cost-effective approach to their goal. additionally, the system discovers and monitors resource utilization. resource waste is one of the causes of poor environmental performance. therefore, such a system analyzes the utilization of various energy sources and notifies the organization of areas where agbioforum, 24(2), 2022 | 158 al-tamimi. — towards integrated management accounting system for measuring environmental performance immediate modifications are required (gunarathne et al., 2021). based on six hypotheses, a quantitative survey was undertaken for this study. these hypotheses were examined using sem analysis. this study's initial hypothesis stated, "traditional mas has a substantial effect on a company's environmental performance." this hypothesis expected a direct correlation between traditional mas and a company's environmental performance. the investigation supported this hypothesis, which revealed that tmas had a significant and positive effect on environmental performance. the second premise of the study was "strategic mas has a substantial effect on a company's environmental performance." this hypothesis also suggested a direct correlation between strategic mas and a company's environmental performance. the investigation supported this hypothesis, which revealed that smas had a significant and favorable effect on environmental performance. prior studies also validate these findings. researchers have found that management accounting solutions improve an organization's performance outcomes. integrating business intelligence and technology into managerial accounting responsibilities can give organizations additional benefits, including improved monitoring and accountability capabilities (visedsun et al., 2021; wang et al., 2015). imas can assist businesses in lowering their energy consumption and improving their energy management (adusei, 2018; alaeddin, 2019; alaeddin et al., 2018; fuzi et al., 2016). using an integrated management accounting system also enables businesses to monitor activities that embrace environmental quality and improve environmental performance (asiaei et al., 2022; haseeb et al., 2019). these results validate the effect of tmas and smas on an organization's environmental performance. the remaining hypotheses were for demonstrating mediation effects. the third and fourth hypotheses were "it technical infrastructure flexibility mediates the relationship between traditional mas and a firm's environmental performance" and "it technical infrastructure flexibility mediates the relationship between strategic mas and the environmental performance of a firm." these hypotheses illustrate the mediation of it infrastructure technological flexibility. the last two hypotheses were "it business alignment mediates the relationship between traditional mas and the firm's environmental performance" and "it business alignment mediates the relationship between strategic mas and the firm's environmental performance." these hypotheses represent it business alignment mediation. prior studies also validate these findings. the literature demonstrates that a company's proficiency in the process of leveraging it technical infrastructure flexibility can impact its environmental management processes and overall business performance and efficiency (antoni et al., 2020; benitez et al., 2018; castro et al., 2021; chen et al., 2017; masa’deh, 2013; wang et al., 2015). similarly, the literature indicates that it-business alignment enables better integration of environmental management processes within an organization and improves overall business performance (boulagouas et al., 2020; epstein et al., 1998; gölgeci et al., 2019; wang et al., 2015; zhang et al., 2022). 1.6 conclusion reputational harm is one of the critical consequences of failing to comply with environmental regulations (asiaei et al., 2022). environmental performance indicators assist businesses in preventing circumstances that result in financial and reputational losses. the current study concludes, therefore, that environmental performance is essential for a business. moreover, it infrastructure is critical in boosting environmental management performance outcomes. using traditional mas and strategic mas supported by a robust it infrastructure can enable companies with a considerable carbon footprint, such as the oil and gas industry, to improve their environmental effect. 7. implications this work has numerous practical applications. first, employing the system to measure environmental performance is advantageous since it reduces expenses. companies can avoid significant financial losses from environmental concerns by utilizing these systems, which enable them to make quality judgments that help them concentrate on what is necessary and what should be avoided. when environmentally friendly options are employed, production costs are also decreased. by measuring performance, the organization identifies innovative and environmentally sustainable means of achieving its goals and reducing expenses. in addition, sales can be enhanced by monitoring environmental conditions (jovanović et al., 2022). it is essential to recognize that decisions are costly and that a single action can lead to the demise of an enterprise. as a result of customer retaliation, businesses that pollute experience a decline in sales. suppose, however, that a business employs a management accounting system. in this scenario, the company can aid in avoiding environmental dangers and become renowned as a compliance business. customers are drawn to brands that consider their requirements. 8. limitations and future research directions several obstacles were encountered while doing the research. due to the study's initial scheduling constraints, the questionnaires were done hastily. participants had a limited amount of time to complete their questionnaires. the problem was resolved by distributing online questionnaires, which saved time and resources. the response rate of the target population posed a further difficulty. 130 persons were eligible to participate. however, not all of them followed the instructions. the research author used only complete responses for this task to prevent getting unnecessary or misleading information. agbioforum, 24(2), 2022 | 159 al-tamimi. — towards integrated management accounting system for measuring environmental performance technology has evolved into a highly useful tool for businesses. in the past, businesses were required to collect data manually and undertake analysis to make informed judgments. today, however, technology provides a feasible alternative. integrating environmental performance characteristics into a management accounting system is one of the wisest decisions a company can make. environmental conservation is an important issue; businesses that fail to see the necessity for this system will eventually incur substantial losses (velte, 2021). by utilizing the system, businesses spend less time and money accomplishing environmental objectives. therefore, it is crucial to establish 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https://doi.org/10.3390/economies9040149 https://books.google.ae/books?hl=en&lr=&id=idelmegcigac&oi=fnd&pg=pp2&dq=vogt https://books.google.ae/books?hl=en&lr=&id=idelmegcigac&oi=fnd&pg=pp2&dq=vogt https://doi.org/10.1016/j.ijinfomgt.2014.11.005 https://doi.org/10.1108/imds-04-2022-0226 agbioforum, 23(1): 56-64. ©2021 agbioforum impact of accession to wto on agriculture sector in vietnam nguyen van huong faculty of economics, hung yen university of technology and education (utehy), hung yen, viet nam email: vanhuong75hy@gmail.com hoang van hung* faculty of economics, hung yen university of technology and education (utehy), hung yen, viet nam email: davidhoang8585@gmail.com mai thi huyen bac giang agriculture and forestry university (bafu), bac giang, viet nam email: huyenmt@bafu.edu.vn nguyen thi bich diep university of financial – business administration (ufba), hung yen, viet nam email: bichdieptcqtkd@gmail.com hoang minh duc faculty of economics, hung yen university of technology and education (utehy), hung yen, viet nam email: huyenmt@bafu.edu.vn nguyen van chuong university of financial – business administration (ufba), hung yen, viet nam email: nguyenchuong.edu@gmail.com after much deliberation, vietnam officially became a member of world trade organisation (wto) in 2006. there is substantial empirical evidence on how accession to wto can lead to economic development, improvement in trade balances, improvement in poverty levels and the closing of income and wages, and in doing so, reduce inequalities. given the fact that most of the vietnamese population lives in rural area (precisely, 78%) and approx. 11 million people are directly or indirectly involved in the agriculture sector. given that the vietnamese economy is heavily reliant on the agriculture sector, it is not surprising that the sector contributes significantly to gross domestic product (approx. 21%). however, to the best of the author’s knowledge, the literature is largely silent on the impact of accession on agricultural sector. taking a cue from this missing link in the literature, the primary objective of this paper is to assess the impact of accession to wto on the agriculture sector. the data is collected from the world development indicators (wdi). as the accession to wto took place in 2006, the paper uses a dummy variable to differentiate pre and post accession. precisely, the dummy takes the value of “1” from 2006 onwards and “0” before 2006. the data spans from 1997 to 2019. the choice of data is dictated by its availability. the findings from the paper show a positive and significant effect of accession to wto on the agriculture sector. this is not surprising as accession to wto can help the agriculture sector gain access to more international markets through adoption of liberalization policies. key findings are discussed, and the implications are provided in the concluding section of the paper. key words: vietnam, agriculture sector, world trade organisation 1. introduction vietnam is officially recognized as a socialist republic with considerable country influence in the southeast asian region. it has a total of 58 provinces spread across 5 municipalities and a total population of more than 96 million. vietnam is the fifteenth largest country in the world in terms of population. it shares its borders with laos, china and cambodia. the capital city of vietnam is hanoi, and its largest city is ho chi minh. vietnam is a regional powerhouse and considered to be one of the strongest emerging economies in the southeast asian region. it is categorized in the developing bracket and the lower middle-income category. more importantly, vietnam ranks alarmingly low in the human development index (hdi). moreover, it is also a part of many global and multilateral organizations such as united nations (un), association of southeast asian nations (asean), asiapacific economic cooperation (apec), comprehensive and progressive agreement for trans-pacific partnership (cptpp), organisation internationale de la francophonie (oif), regional comprehensive economic partnership (rcep) and the world trade organisation (wto). vietnam has also held a seat in the united nations security council (unsc) twice. unfortunately, the country is marred by high levels of corruption with bribery being highly rampant. this is one of the major issues currently facing the vietnamese government, economy and people. historical surveys find poor level of transparency while taking bribes by government officers, medical practitioners and civil officers is found to be rampant across the country. nevertheless, reforms undertaken over the past several decades have resulted in reduced corruption and most of their success can be attributed to the effective implementation of anticorruption measures by civil servants. although there are visible signs of improvement in corruption levels, they still remain high. the effectiveness of anticorruption measures is examined over the period of two years, that is, from 2015 to 2017, and thereafter the plan was re-enacted for the anticorruption drive for the next five years, that is, from 2021 to 2025. the vietnamese economy has witnessed rapid economic expansion over the past several decades. the story of vietnam’s rapid development is nothing short of spectacular, especially over the past 30 years. these high numbers in most economic indicators were the result of series of economic reforms that were initiated under the banner of doi moi reforms. these reforms were initiated in 1986. the doi moi reforms led to unprecedented mailto:vanhuong75hy@gmail.com mailto:davidhoang8585@gmail.com mailto:huyenmt@bafu.edu.vn mailto:bichdieptcqtkd@gmail.com mailto:huyenmt@bafu.edu.vn mailto:nguyenchuong.edu@gmail.com agbioforum, 23(1), 2021 | 57 huong, hung, huyen, diep, duc and chuong — impact of accession to wto on agriculture sector in vietnam economic growth level and left a positive mark on most other economic indicators such as employment level, trade balance and the level of inflation. more specifically, reforms implemented under the banner of doi moi transformed one of the poorest nations in the world into a lower middle-class category. more importantly, poverty level has also been seen decreasing sharply following the implementation of these economic reforms. the latest growth trend indicates that the vietnamese economy grew by close to 3 times from 2002 to 2018. during the same period, the poverty level reduced from 70 to as low as six percent. most of the people under the poverty line are the ethnic people. more precisely, 86 percent of the people below the poverty line are the ethnic vietnamese. as a matter of fact, the vietnamese economy is deeply integrated with the world economy and hence been adversely affected by the covid-19 pandemic. however, it is important to note that the country has proved to be remarkably resilient. in fact, the gross domestic product (gdp) of vietnam grew by close to 3% since the onset of the pandemic. nevertheless, like other countries, especially the developing ones, the pandemic has had a severe effect on the economy. the country witnessed a massive drop in household income in january 2021 when compared to january 2020. in fact, these statistics are worrisome as the percentage of people reporting lower household income is as high as 45%. however, the impressive resilience is ensuring the smooth recovery, and the annual economic growth is expected to bounce back to pre-pandemic levels by the first quarter of 2022. in fact, as per world bank estimates, the vietnamese economy is expected to grow annually at the rate of 6.5% in 2022. these growth estimates are based on successful implementation of pandemic measures that have been highly effective in controlling the spread of the disease. moreover, the economy also witnessed a demand surge in the domestic market and an improvement in the performance of export manufacturing firms. the transformations seen under deng xiaoping since the beginning of doi moi (the economic transformation) in vietnam have produced positive results in the form of improving the level of economic development, boosting trade by increasing exports, bringing in foreign direct investments as well as portfolio investments. moreover, in macroeconomic terms, there has been a marked decrease in unemployment rates, improvements in the level of poverty, and a reduction in income inequality. however, one of the major challenges currently faced by the vietnamese economy is ensuring sustainability of economic growth for the future. the sustainable economic growth is very important for a vietnamese economy in order to ensure wealth equality which will also contribute to a more political stable vietnam. as part of its continued economic reform, vietnam decided to join world trade organisation (wto). after much deliberation, vietnam formally joined the wto in 2007. the decision to join the organisation was a strategic move undertaken with a view to attract foreign investments in form of direct as well as portfolio investments. being part of wto resulted in the vietnamese economy open up for the leading international market. the main effect of this accession is the development of the domestic market through import of technologies and the establishment of multinational firms which can open more avenues for economic growth channels vietnam. as mentioned above, vietnam decided to join wto in 2007 and vietnam’s participation was meant to bring about trade openness. the accession was widely applauded as a strategic move to liberalize trade in the country. this is expected to happen through a gradual improvement in access to different markets and hence positively affect trade and economic growth. accession to wto is expected to benefit the country as per the heckscher-ohlin model of comparative benefits. based on this theoretical model, developed by bertil ohlin and eli heckscher, the wto accession provides advantage to the unskilled labors in vietnam (due to lower wages) while also contributing to the level of economic activity in the country. in turn, this is expected to lower the wage gaps, alleviate poverty and reduce income inequality (winters et al., 2004). as accession to wto is expected to improve trade through better access to international markets, the objective of this paper is look into as to how the wto accession is expected to impact the agriculture sector. most of the extant literature examines the impact of the participation in wto on trade liberalization, foreign direct investments (fdi), portfolio investments, economic growth, employment level, poverty level and income inequality from the lens of development. given the fact that the vietnamese economy is heavily dependent on contribution from agriculture sector, it is surprising to see limited literature on the impact of wto accession on the agriculture sector in vietnam even 15 years following the country’s accession. given the significant gap in the literature noted earlier, the primary aim of this paper is to examine the unexplored link between wto accession and the agriculture sector. however, to the best of the authors’ knowledge, the literature is largely silent on the effects of accessing to wto on the local agricultural sector. in light of this missing link in the literature, this paper seeks to assess the impact of accession to wto on the agriculture sector in vietnam. the data is collected from the world development indicators (wdi). as the accession to wto took place in 2006, the paper uses a dummy variable to differentiate preand post-accession. the dummy takes the value of “1” from 2006 onwards and “0” before 2006. the data is collected from 1970 onwards and the total sample period is of 50 years which span from 1997 to 2019. the choice of data is dictated by the availability. the findings from the paper show a positive and significant effect of accession to wto on the agriculture sector. this is not surprising as accession to wto has helped the agriculture sector access more international markets with the adoption of liberalization policies. these study findings are discussed and implications for future research are provided in the paper. the paper also provides a clear direction for future researchers to follow in light of the limitations of the current research study. the paper adds to the existing body of literature in at least agbioforum, 23(1), 2021 | 58 huong, hung, huyen, diep, duc and chuong — impact of accession to wto on agriculture sector in vietnam two ways. first, the paper provides a significant contribution to the extant literature by extending the existing work on accession to wto and its link with the macroeconomic indicators by specifically looking into the impact of wto membership on the agriculture sector. second, the paper adds to the literature on developing countries by providing the implications of a developing country or an emerging economy joining an international trade organization with a particular focus on its effect on the agriculture sector. finally, the paper also contributes to our understanding of the vietnamese economy and its response to the accession to wto which is, so far, limited to key macroeconomic indicators. the following section (section 2) provides a brief overview of the existing literature on the accession to wto and its effect on various sectors/variables. the following section (section 3) discusses the data collection process and the research methodology used during the study. in section 4, the paper highlights the results and discusses implications for future research on the subject. finally, in section 6, the paper provides conclusion based on the study findings. 2. literature review 2.1 empirical evidence on wto accession the hypothesis posited by analysts points to liberalization being the key factor in determining the level of economic development of a country. these evidences have some solid empirical and theoretical backing. for instance, the empirical work of mcmillan et al. (2011) and duong (2016) points to the positive association between trade liberalization and economic development. this liberalization could be the result of accession to international trade agreements like wto. however, there is very limited evidence to show the direct association between such trade agreements and economic growth (goldberg et al., 2016). in contrast to the evidences provided in favor of trade agreements like wto, there is a strand of literature that argues that internally drafted policies and procedures are effective in terms of transforming state entities. for instance, sez special economic zones) are found to be crucial in pushing growth and providing competitive edge, especially for the agriculture and the manufacturing sectors. there are solid empirical evidences provided in favor of domestic policy-led transformations as compared to international trade reforms (see for instance the work of (autor et al., 2013; cuong, 2013; song et al., 2011)). existing empirical evidence indicates that a decrease in domestic tariff supposedly has a significant impact on the manufacturing industry (manova et al., 2017). however, these empirical evidences have mostly focused on the manufacturing sector and there is hardly any evidence available outside the manufacturing sector (erten et al., 2021). as the productivity in the agricultural sector is significantly lower compared to the non-agricultural sector, the substitution effects have several key implications (gollin et al., 2013). the analysis of trade openness reforms, via accession to wto, in the context of the agricultural sector in vietnam will open a new debate. 2.2 modelling used in the literature the cge models commonly referred to as computable general equilibrium models are preferred while assessing the effect of trade agreements on the macroeconomic performance of a country. the standard version of cge is generally dependent on the description of a few household samples categorized by various factors and on the basis of their distinct behavior. the heterogeneous household population is therefore connected in an unsatisfactory and scarce method. this approach can be attributed to the fact that the inequality modelling is carried out on the basis of the sampled data. there are various situations in which observed data on inequality decomposes as the observed data on inequality has demonstrated that with inequality of in-group sample is way more crucial than the between group equality (cogneau et al., 2003; vo et al., 2021). similarly, the same pattern also holds for changes or variations in inequality. this explains why the traditional macro models do not appear to be satisfactory in tackling distributional challenges. a number of distinct approaches are used in the literature to assess the macroeconomic performance rely on the full samples of households or individuals. these recent approaches are developed to overcome the above-stated issues (cogneau et al., 2003). these methods differ in the ways they tackle micro activities and the integration level of micro and macro narratives (abbott et al., 2009; bourguignon et al., 2005). the applied cge modelling depends on the “social accounting matrix” or sam as the initial data. the approach of sam offers almost all the comprehensive explanation. base on the issue at hand, the different accounts could be determined at all stages of data aggregation. a close scrutiny of sam approach indicates that the sub matrix of indicators to be reliant on the value addition of several factors. as some of the parameters obtained by the sam approach are unrealistic as well as regular. these issues are very problematic in a sense that shocks are triggered by reordering critical aspects. as the distributional query is the main objective of almost all the studies, the sam structure is generally corrected by the construction of more realistic sub matrices. 3. data and methodology 3.1 data as information used in this study pertains to macroeconomic variables, the data is collected from the world development indicators (wdi) from 1997 to 2019. the level of development in the agriculture sector is measured by the agriculture value add as a percentage of gross domestic product (gdp). this variable is denoted as agriculture development in the paper (ad). the other control variable used in the paper is gross domestic product (gdp) calculated at the base year of 2010. this variable is denoted in the paper as economic development (ed). moreover, foreign direct investments is also used a agbioforum, 23(1), 2021 | 59 huong, hung, huyen, diep, duc and chuong — impact of accession to wto on agriculture sector in vietnam control variable. this variable is measured as foreign direct investment (inflows) as a percentage of gdp, and is denoted in the paper as fdi. the choice of sample period is dictated by the availability of the data, especially agriculture development (ad) as it is only available from 1997 onwards. the paper also uses a dummy variable to differentiate preand post-accession periods. the dummy takes the value of “1” for the year starting 2007 and “0” otherwise. 3.2 methodology given the nature of the data series used in this study, the author employs the time series modelling. although there are various time series approaches used in past studies, for this paper, we use the methodological approach of autoregressive distributed lag (ardl). this method was developed by m hashem pesaran et al. (1997) and the m. hashem pesaran et al. (2001). there are several advantages of using ardl over the other methods commonly used for cointegration. first, the ardl is designed to take care of variables irrespective of whether they are integrated of order “1” or integrated of order “0”. the integration order of “1” and “0” is denoted by i(1) and i(0) respectively. in the literature, the paper refers to them as i(1) or i(0) with the value in the parenthesis signifying the order of integration. being able to handle series of i(1) and i(0) variables provide a great advantage over the cointegration method proposed by engle et al. (1987). the cointegration approach of engle et al. (1987) is incapable of handling the series with a mix of i(1) and i(0) (m hashem pesaran et al., 1997). their approach can only handle the variable with the integration order of “1”. additionally, the approach of engle et al. (1987) is found to be inadequate for series with multiple variables. therefore, in case of multivariate series, it is recommended to use the method proposed by søren johansen (1988) and soren johansen et al. (1990). the approach proposed by søren johansen (1988) and soren johansen et al. (1990) is found to produce efficient results as compared to the methodological approach of engle et al. (1987). finally, the method proposed by engle et al. (1987), søren johansen (1988) and soren johansen et al. (1990) is best suited for long time series data. therefore, the approach of ardl is superior as compared to engle et al. (1987), søren johansen (1988) and soren johansen et al. (1990) for following two reasons. first, ardl can handle a series of variables irrespective of whether they are i(1) or i(0). however, it is important to note that the ardl is inadequate in a case where the series has i(2) variables. second, and more importantly, the approach of ardl can be used even for smaller time series data. even in case of smaller time series data, they can produce coefficients that are not only consistent but also efficient. (ghatak et al., 2001). finally, the ardl approach can also tackle the issue of non-stationarity in the series as opposed to other commonly used methods (laurenceson et al., 2003). the ardl approach is easy to implement and has following key steps. in the first step, the variables are required to be tested for the stationarity. this is done through the unit root testing of the variables. the unit root tests that is used in the paper are that proposed by dickey et al. (1979)), dickey et al. (1979) and the phillips et al. (1988). these tests are commonly referred to as df, adf and pp unit root tests. once the integration of variables has been identified, the next step is to test for cointegration. in case of at least one cointegration, it can be argued that the variables are associated in the long run. to test for the integration of variables, the unit root tests are conducted. the following equation is estimated for unit root and the ardl estimation: 𝐴𝐷𝑡 = 𝛼 + 𝛽𝐸𝐷𝑡 + 𝛾𝐹𝐷𝐼𝑡 + 𝜀𝑡 (1) in the equation (1), ad is the agriculture development in vietnam at time ‘t’. ed is the gdp of vietnam at time ‘t’. fdi is the foreign direct investment (fdi) in terms of inflows in vietnam at time ‘t’. β and the γ are the coefficients of gdp and the fdi inflows respectively. in the ardl, estimation is further augmented to add dummy variable. the dummy variable is used to differentiate pre and post-accession period. the dummy takes the value of “1” for the year starting 2007 and “0” otherwise. the process of ardl approach follows three key steps. the first step involves cointegration tests. these tests are helpful in determining the presence of a long-term relationship among the variables understudy. the cointegration test is conducted using the bound testing approach of m hashem pesaran et al. (1997) and the m. hashem pesaran et al. (2001). equation 1 can be transformed into the ardl equation as follows: 𝐴𝐷𝑡 = 𝛼 + ∑ 𝛽𝐸𝐷𝑡−𝑖 𝑛 𝑖=1 + ∑ 𝛾𝐹𝐷𝐼𝑡−𝑖 𝑛 𝑖=1 + ∑ 𝜙∆𝐸𝐷𝑡−𝑖 𝑛 𝑖=1 + ∑ 𝜆∆𝐹𝐷𝐼𝑡−𝑖 𝑛 𝑖=1 + 𝜀𝑡 (2) the above equation equation 2) is employed to test the presence of a long-term relationship or the cointegration among the variables. the null hypothesis of no cointegration in equation 2 is β = λ = 0. the hypothesis of no cointegration is tested by comparing the estimated f-statistics with the m hashem pesaran et al. (1997) and m. hashem pesaran et al. (2001) critical values. the significant f-statistics will imply cointegration. 𝐴𝐷𝑡 = 𝛼 + ∑ 𝛽𝐸𝐷𝑡−𝑖 𝑛 𝑖=1 + ∑ 𝛾𝐹𝐷𝐼𝑡−𝑖 𝑛 𝑖=1 + 𝜀𝑡 (3) the presence of cointegration is followed by the estimation of long run coefficients. in the above equation (equation 4), significant coefficient values of β and λ can reveal the magnitude and the sign of the relationship among the variables. agbioforum, 23(1), 2021 | 60 huong, hung, huyen, diep, duc and chuong — impact of accession to wto on agriculture sector in vietnam 𝐴𝐷𝑡 = 𝛼 + ∑ 𝜙∆𝐸𝐷𝑡−𝑖 𝑛 𝑖=1 + ∑ 𝜆∆𝐹𝐷𝐼𝑡−𝑖 𝑛 𝑖=1 + +𝐸𝐶𝑇𝑡−1 + 𝜀𝑡 (4) the final step in the ardl approach is the estimation of error correction term. in the above equation (equation 4), ect represents the error correction term. the parameters ϕ and the λ are coefficients that indicate the short-run relationship. the significance of these parameters is that it implies that the ed as well as the fdi impacts the ad in the short run as well. additionally, the coefficient of ect term tells the time taken for the equation to return to a state of equilibrium. econometrically speaking, the coefficient term of ect takes the value between “0” and “1”. 4. results and discussion the results of the unit root test proposed by dickey et al. (1979) and the phillips et al. (1988) is provided in table 1 below. table 1: stationarity tests (unit root tests) adf pp variables level first difference level first difference ad 1.9835 -7.9918** 1.9981 6.1198*** gdp 1.8817 8.4832*** 0.7991 9.8987*** fdi 1.4537 5.7761*** 0.4644 5.9169*** *(10%), **(5%) and ***(1%) significance level the reported unit root tests (presented in table 1) indicate that all the variables are integrated of order “1”, that is, i(1). table 2: cointegration test cointegration tests f-statistics t-statistics pvalues f (ad|gdp|d|fdi) 11.9199*** -9.1198 0.000 *(10%), **(5%) and ***(1%) significance level the table 2 depicts the cointegration results. the significant f-statistics indicate towards at least one cointegration among the variables. the second step in the time-series estimation is the test of cointegration among the variables. more precisely, the results point to the presence of a long-term relationship between the focal variables. the dummy variable is also used in the test. the next step in the ardl method is to assess the coefficients of long run relationship. the estimated coefficients from ardl method are presented below in table 3. the results indicate a positive effect of banking development and energy consumption on economic growth. these results are in line with the findings presented in the extant literature. for instance, the positive impact of energy consumption on economic growth can be attributed to the growth led hypothesis (aslan et al. 2014; ozturk et al. 2010). the growth hypothesis argues that a higher level of energy consumption leads to more economic output, and hence, economic growth. all the variables are significant and more importantly, positive. for instance, the coefficient of gdp is positive and significant indicating that an improvement in the economic activity leads to more development in the agriculture sector. table 3: obtained coefficients variables coefficients standard errors pvalues gdp 0.6611** 0.1164 0.013 fdi 0.1187* 0.3276 0.010 d 0.6708*** 0.2987 0.000 constant 0.9981* 0.7627 0.061 *(10%), **(5%) and ***(1%) significance level. “d” in the above table denotes dummy variable. the dependent variable is agriculture development (ad). moreover, the coefficient of fdi is also found to be positive and significant. this implies that the fdi inflows are good for the agriculture sector as they bring in innovation and technological development in the industry, which in turn, positively affects the agriculture sector. finally, “d” which is a dummy variable signifying the post-accession period. a positive and significant dummy variable indicates that accession to wto was a good decision for the agriculture sector. in other words, the decision to join wto has proven to be a strategic move for the local agriculture sector in vietnam. the impact of accession to wto on the agriculture sector has been a promising development for the vietnamese economy. the main channel through which wto leaves a significantly positive effect is through the policy changes suggested by the wto. this is understandable as accession to the organization requires changes in the existing polices as a prerequisite to membership. these policies have allowed several agricultural firms to expand and improve their existing capabilities. these policies have also enabled these firms to drastically improve the production and processing capabilities which has helped them to not only export but also export good quality products. moreover, policy changes have also led to the adoption of policies and procedures at par with international standards. the adoption of these policies and procedures gives much needed confidence to the agricultural enterprises in the vietnam to compete with the international practices, especially in terms of the business practices they have adopted. the adoption of international business practices also meant that the products exported were of high quality. for instance, soon after accession to wto, vietnamese agricultural firms started to export rice of premium quality to japan. this was a great achievement considering that the japanese market is difficult to get into. accession of wto meant that the policies and the procedures adopted by the vietnamese agricultural firms also complied with the regulations of us and the european markets. not just this, to accession also meant that vietnam now can export agricultural products to most of the countries in the world. this has created more opportunities for the vietnamese agricultural firms and they have grown and expanded rapidly following agbioforum, 23(1), 2021 | 61 huong, hung, huyen, diep, duc and chuong — impact of accession to wto on agriculture sector in vietnam accession to wto. the agricultural products were at the bottom of the tariff list and numerous non-tariff blockades were lifted. the low tariff meant that there was an opportunity to charge higher margins for agricultural products. this helped to increase prices of exporting commodities. this is precisely what has happened in 2007 as the agricultural firms during that time has exported all the agricultural commodities at a higher price. the period saw the price of vietnamese rise witness an all-time high and even exceeded the price of rice from all over the world including, thai rice. more recently, a vietnamese produced rice saw the price of 350 usd per ton which is higher than the most expensive thai rice by 8 usd per ton. coffee and rubber producers also witnessed an increase in prices being exported at a price of 1690 usd per ton and 2400 usd per ton, respectively. moreover, accession to wto also meant more openness for the vietnamese economy. the economic dynamics also forced the change to focus on the industries that belong to a highly competitive sector, especially those in the agriculture industry. the available resources were efficiently utilized for producing high quality produce which was then exported to markets globally with the incentives of less or even zero trade complications. this also created several employment opportunities, especially in the agriculture sector. usually, the policy changes following the decision of joining trade or any such organizations is expected to have a lagged effect. in other words, the policy changes take some time to have an impact on the economy or the specific sectors that it is targeting. however, in case of vietnam, = accession to wto yielded immediate results in terms of job creation, better economic performance, improved firm performance of agricultural sector etc. however, it bears to note that the trade move did not yield positive results overnight for the local agriculture sector in vietnam. for instance, the agriculture sector remained under immense pressure after accession to wto due to the sudden restructuring of policies and procedures to adhere with. most of the agriculture firms were not capable enough to integrate those policies into their business practices. the agriculture industry is expected to face these challenges in the future as well. this can be partly attributed to higher level of access to overseas agricultural produce as a result of lifting of trade restrictions. moreover, the removal of trade restrictions has also led to higher prices of raw materials. additionally, the agricultural sector in vietnam is yet to develop a proper infrastructure that can effectively serve the industry. this lack of infrastructure in the agricultural sector presents a number of challenges for firms in the agriculture industry, especially in terms of improving their competitiveness. this has led to many firms in the agriculture sector losing out to multinational firms and not being able to compete with them especially due to pricing issues. for instance, the cost of producing agricultural products in vietnam is way more as compared to their key competitors such as china and thailand. subsequently, the agricultural products produced in vietnam also became way less competitive globally as well as domestically. furthermore, the sluggish response from the administrative authorities to introduce policies in a timely manner also meant that the foreign direct investments (fdis) are delayed. although other sectors of the economy also suffered from the lack of fdis, the agriculture sector suffered the most. for instance, during the five-year period from 2006 to 2010, there were close to 100 key projects looking for fdis but out of these national projects, only one was related to the agriculture. the slow policy response meant that the vietnamese economy did not receive investments from countries with very sophisticated agriculture sectors such as australia, canada and the united states. the drafted policies were miserably lagging behind the conditions set by the wto with regards to integration development. the earlier policies with regards to the agriculture sector were principally targeted at fulfilling domestic demands and the exports were only considered once the domestic demands were met. however, after accession to wto, the focus has turned to more sustainable and productive approaches. hence, it became necessary to ensure that the farmers knew about the relevant guidelines and had access to all the necessary information with regards to integration policies. this required an active effort from the vietnamese government to educate farmers about all that they need to know to prepare themselves for the new normal in the country. the lack of utilization of subsidies also added to the woes of the agricultural sector postaccession. for instance, vietnam only used one-third of the total subsidy of usd 1.2 million and this negatively affected the agriculture sector. generally, the agriculture sector gained from the decision of vietnam’s accession to wto but it was not without its challenges. proposed solutions for the agricultural industry seek to take advantage as well as overcome the challenges of being a wto member/ government in individual countries design policies with a view to take full advantage of wto membership. however, there are a number of conditions that need to be in place before these advantages can be exploited. the following conditions and solutions need to be implemented in an effective manner in the coming years. this includes restructuring the agricultural industry with a focus on highly competitive commodities. the agricultural industry has recently been restructured with some initial successes. however, there are still many existing problems including the low quality of restructuring work and the inability of new structures to cope with the dynamics of the market-oriented economy. in addition, there has been weak coordination between agricultural restructuring and policy-making, investment, and research and development. in the integration process, it is crucial for vietnam to identify and develop key economic sectors as well as industries which have comparative advantages. in the coming years, the agricultural industry needs to be restructured to focus on the following industries: • rice industry: focusing on investment and improvement of productivity and quality to guarantee food security and export. • cattle, poultry, and fishery industries: focusing on implementation of strategies to ensure sustainable development of these industries. • forestry: balancing between the areas of agbioforum, 23(1), 2021 | 62 huong, hung, huyen, diep, duc and chuong — impact of accession to wto on agriculture sector in vietnam protection forests and production forests (which contribute through direct economic benefits to local residents. 7 • rural industries: building small industrial zones in areas which have traditional villages and strong rural industries development. maintain subsidy policies and strengthen ‘green box’ polices under wto regulations, ‘green box’ policies are allowed to be implemented. in vietnam, about 84.5 per cent fund of such subsidised policies are used for building agricultural infrastructure, developing extension services, subsidising disaster areas, and maintaining food security. approximately 10.7 per cent of this fund is used for subsidising the sugar and dairy industries, reducing interests on loan for the poor, and restructuring the agricultural industry. there is only about one to three per cent of such funds which is used for research. there are about 78 per cent of rural households still rely on agricultural production as their main source of income. subsidised policies can be implemented to withdraw resources out of the agricultural sector in order to change the economic structure. even though these subsidies are not prohibited under wto regulations, they have not been implemented in vietnam. the vietnamese government can also pay farmers to help them with production losses and damages. this payment can be directly given to farmers under schemes such as income insurance and tax exempt. 5. conclusion the vietnamese economy has witnessed rampant demographic and socio-economic change over the past several decades. the total population in vietnam has crossed the 96 million marks, making it the 14th most populated country in the world. the population numbers have gone up from 60 million to 96 million in 2019. based on the latest census (2019), more than 50% of the population is under 35 and life expectancy in the report is reported to be 75 years. life expectancy is the highest in the region of southeast asia but the worrying part is that the average age is increasing. moreover, the population in the middle-income bracket is projected to go up from 13% to 26% by the year 2026. the vietnamese economy has shown remarkable growth and improvement in the past three decades, especially in terms of providing basic necessities to its people. moreover, access to infrastructure to people has also been seen to significantly improve during this period. the country has seen the most improvement in terms of access to electricity. for instance, access to electricity has gone up from just 14% back in 1993 to close to 99% in 2017. moreover, the country has also managed to provide its resident better access to life amenities. for instance, clean water access, especially in rural areas has improved from 18% to 72% in 2017. the number has gone up to 96% for urban regions. however, there is a worrying pattern when it comes to investment. for instance, vietnam is currently witnessing the lowest investment in the asean region. the literature so far has tested the link between accession to wto and various macroeconomic indicators. most of the extant literature examines the impact of participation in wto on trade liberalization, foreign direct investments (fdi), portfolio investments, economic growth, employment level, poverty level and income inequality. given the fact that the vietnamese economy is heavily dependent on the contribution from agriculture sector, it is surprising to see no literature on the impact of wto accession on the agriculture sector in vietnam even after more than 15 years of accession. as accession to wto is expected to facilitate trade relations by providing better access to international markets, the objective of this paper is to investigate into how wto accession is expected to impact the agriculture sector in particular. more precisely, the main aim of this paper is to examine the unexplored link between wto accession and the agriculture sector. this paper attempts to explore vietnam’s participation in wto with regards to agriculture sector as opposed to past studies in existing literature that have limited their examination to economic and trade-related performance. the present study allows us to examine the wto accession from the perspective of the agriculture sector as these policies can take a long time to take effects. over the recent past, empirical evidences have demonstrated that participation in trade agreements such as asean, apec, cptpp, oif, rcep, wto etc., have been extremely positive for most of the macroeconomic indicators of vietnam. however, most of these studies have somehow tended to ignore the effect of these trade agreements, especially wto, on the vietnamese agriculture sector. with regards to accession to wto, the assurances given by the vietnamese authorities have more substantial consequences as compared to other trade agreements. accession affects all the economic sectors and hence, it is difficult to understand as to why there is no research on the topic so far. moreover, given the significance of the agriculture sector to the vietnamese economy, it becomes much harder to digest the unavailability of any existing evidence on accession to wto and its effect on the vietnamese agriculture sector. taking a cue from this missing link in the literature and as mentioned above, the main objective of this paper is to assess the impact of accession to wto on the local agriculture sector. the data is collected from the world development indicators (wdi). as accession to wto took place in 2006, the paper uses a dummy variable to differentiate pre and post-accession periods. this dummy variable takes the value of “1” from 2006 onwards and “0” before 2006. the data is collected from 1970 onwards. the total sample period is 50 years, spanning from 1997 to 2019. the choice of data is dictated by availability. the findings from the paper demonstrate a positive and significant effect of an accession to wto on the agriculture sector. this is not surprising as accession to wto helped the agriculture sector to access more international markets through the adoption of trade liberalization policies. undoubtedly, accession to wto proved to be a game changer for the agriculture sector in the vietnamese economy. the to accession has led to policy changes suggested by the wto. these changes have made the agriculture sector more competitive through knowledge agbioforum, 23(1), 2021 | 63 huong, hung, huyen, diep, duc and chuong — impact of accession to wto on agriculture sector in vietnam and the technology transfer. the improved technology led to the better-quality produce that have helped agricultural firms in the vietnam to sell the produce at a premium price. the accession has given the necessary confidence to the agriculture in a sense that they were able to compete with the international players. one of the major achievements post wto accessions is the export of rice of japan. this was an incredible achievement considering japan is tough market to enter. the accession also meant that now the vietnamese firms have the access to us, european and other developed markets due to their compliance to international standards. overall, the accession has brought many positives for the agriculture sector in vietnam. references abbott, p., bentzen, j., & tarp, f. 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(2021). impact of trade liberalization on household welfare: an analysis using household exposure-to-trade indices. social indicators research, 153(2), 503531. doi:https://doi.org/10.1007/s11205-02002499-1 winters, l. a., mcculloch, n., & mckay, a. (2004). trade liberalization and poverty: the evidence so far. journal of economic literature, 42(1), 72-115. doi:http://dx.doi.org/10.1257/002205104773558 056 http://dx.doi.org/10.1257/aer.101.1.196 https://doi.org/10.1007/s11205-020-02499-1 https://doi.org/10.1007/s11205-020-02499-1 http://dx.doi.org/10.1257/002205104773558056 http://dx.doi.org/10.1257/002205104773558056 agbioforum, 21(3): 15-22. ©2022 agbioforum factors affecting farmers' decisions to participate in agricultural tourism activities: a case study in the mekong delta, vietnam ho phi dinh phan thiet university, vietnam email: dinhphiho@gmail.com phuoc huu vo academy of politics region ii, ho chi minh city, vietnam email: huuphuocktpt@yahoo.com; orcid: 0000-0001-53862956 duong ngoc pham university of finance & marketing, ho chi minh city, vietnam email: ngocduongx@gmail.com thanh quang ngo school of government, university of economics ho chi minh city (ueh), ho chi minh city 72407, vietnam email: thanhnq@ueh.edu.vn; orcid: 0000-0001-8357-1957 agricultural tourism, or agritourism, creates jobs for household members, diversifies farming activities and sources of revenue, and lowers the household's reliance on nature. this study uses binary logistic regression analysis to conduct a direct survey of 450 agricultural households in the mekong delta, vietnam. the findings indicate that influencing factors include the following: support for local government policies; membership in farmer associations, unions, and extension clubs; awareness of the benefits of agritourism; a variety of production models; internet access; education level; and membership in tourism associations, travel organisations. distance between farms and agritourism destinations. key words: agricultural tourism; benefits of agritourism; binary logistic regression model; mekong delta, vietnam; tourism associations. 1. introduction vietnam's agriculture has been developing, with more than 65 percent of the population residing in rural areas. this sector is critical to socio-economic growth. vietnam has numerous benefits for developing agricultural tourism due to its abundant natural resources, cultural identities, and long-standing farming methods of ethnic groups. each of the 63 provinces and cities has spectacular natural landscapes, various agricultural production strategies tailored to the region's ecology, and hospitable farmers. it is a tourism asset and a competitive advantage for vietnam (tam, 2021). agritourism is a viable option for farmers interested in supplementing their income and increasing earnings from farm assets (bernardo, 2004). agritourism generates employment options for household members (carter, 1998), diversifies farming operations and sources of revenue, and lessens the household's reliance on nature (veeck et al., 2006). tourism development in rural areas also benefits spiritual and monetary values and community cohesion. however, agricultural tourism growth in vietnam has lagged below the available potential in recent years. the primary objective of agricultural tourism development is to engage farmers in agricultural tourism activities. the issue is also a source of contention for scholars and policymakers in vietnam's agriculture and tourist sectors. this article is divided into three sections: (1) identifying the elements that influence a farmer's decision to participate in agricultural tourism; (2) developing an econometric model to account for the above linkages; and (3) policy implications for farmers interested in participating in agricultural tourism activities. the mekong delta in vietnam is one of southeast asia's largest and most fertile deltas, the largest food production and export area, and the largest tropical fruit tree planting area in the country, with a natural area of 4,092.2 thousand hectares, 62.9 percent of which is used for agricultural production. each year, the majority of the delta area is deposited with alluvium, which is highly fertile, particularly the sweet alluvial strip along the tien and hau rivers, which, combined with an interlaced network of rivers and canals, creates favourable conditions for agricultural production water supply (general statistics office of vietnam (gso), 2020). as a result of their agricultural capabilities and different ecosystems, the mekong delta provinces have an edge in promoting niche tourism, such as biosphere reserves, eco-tourism, river culture, fruit gardens, and traditional village professions. 2. theory overview 2.1 concept of agritourism according to experts at the university of california, agritourism is any revenue-generating activity conducted on a farm for the recreational and educational enjoyment of tourists. it encompasses the interpretation of the land's natural, cultural, historical, and environmental characteristics and the farmers who cultivate it. agritourism activities are classified by the usda (united states department of agriculture) as educational activities, hospitality, outdoor leisure, marketing agricultural products, and product manufacture or sale. according to the united states natural resources conservation service (nrcs), agritourism can contribute to soil conservation and enable the development of more sustainable agricultural systems because farmers and ranchers rely on natural resources such as soil, water, air, plants, wildlife, and landscapes to connect their families to farms and ranches (sarep, 2017). 2.2 foundation theory 2.2.1 theory of reasoned action according to ajzen (1991) theory of reasoned action, behavioural intentions cause behaviour and intentions are mailto:huuphuocktpt@yahoo.com https://orcid.org/0000-0001-5386-2956 https://orcid.org/0000-0001-5386-2956 mailto:thanhnq@ueh.edu.vn agbioforum, 21(3), 2022 | 16 dinh, vo, pham, and ngo. — factors affecting farmers' decisions to participate in agricultural tourism activities controlled by individual attitudes, with the effect of subjective norms (the influence of others also leads to their attitudes). in which, behavioural intention is influenced by attitude and subjective norms. this model is used to forecast how individuals will behave in the future based on their prior attitudes and behavioural intentions. numerous research studies have established a strong link between behavioural intention and behaviour (sheppard et al., 1988). however, there is still considerable dispute over the link between behavioural intention and actual conduct, as behavioural intention does not necessarily result in actual behaviour under certain conditions. 2.2.2 theory of planned behavior according to ajzen (1991)'s theory of planned behaviour, the intention to do an action is impacted by three factors: attitude toward the conduct, subjective norms, and perceived behavioural control. thus, tpb evolved from the notion of rational action and overcame the constraint that human behaviour is entirely determined by reason. there are three essential determinants in this theory: (i) the personal factor is the individual's attitude toward the behaviour in terms of the positive or negative consequences of performing the behaviour; (ii) the subjective norm is the individual's intention to perceive social pressure; and (iii) finally, the determinant of selfefficacy or the ability to perform the behaviour is called cognitive behaviour. the theory demonstrates the critical role of behavioural attitudes, subjective norms, and cognitive behavioural control in creating behavioural intentions. 2.2.3 useful perception theory according to the useful perception theory, in agriculture, new technical measures or solutions are frequently perceived to carry more significant risks than traditional methods, creating barriers to application selection decisions when farmers are uncertain about the effectiveness and utility of the measure or solution and therefore delay application to await trial results (feder et al., 1985). thus, feder et al. (1981) demonstrated that access to official information enables farmers to perceive a reduction in risk and uncertainty while recognising the application's effectiveness and utility, thereby increasing the likelihood of picking the application. 2.2.4 theory of agritourism alternative tourism is an integral aspect of today's tourist sector. agricultural tourism is a type of alternative tourism that exists in rural areas. thus, agricultural tourism is an activity in rural areas, where agriculture and agricultural product processing occur at all phases (mieczkowski, 1995). according to coates et al. (2002), most resources have multiple uses, and farms can increase their competitiveness by repurposing these resource advantages and transforming them into new products or services. 2.2.5 social representation theory according to social representation theory, encouraging community involvement in rural tourism development will result in sustainable rural tourism development. social representation is a body of information comprised of disparate expectations, images, and values, each with its cultural importance and distinct from personal experience (rateau, 2011). social representation is mainly formed through printed and electronic media, social interaction, and direct experience, and as a result, social consensus directly affects people's attitudes toward a particular subject (pearce, 1996). 2.2.6 the center-periphery theory according to the center-periphery theory, well-endowed regions will have the possibility to expand further if they utilise the resources of neighbouring regions (gren, 2003). the application of innovation to the growth of one community and the subsequent creative spillover into another (yates, 2001). the background mentioned above ideas are essential to this study because they help explain the nature of agritourism, the behaviour of farmers involved in agritourism, and why farmers actively participate in the agritourism model of rural tourism development. 2.2.7 empirical studies related to factors affecting the decision to join agricultural tourism agritourism research in china demonstrates that communities engaged in agritourism activities are influenced by local economic, cultural, social, and environmental aspects (li et al., 2011). kunasekaran et al. (2012) found that perceived benefits, government backing, and distance from farm to nearest commercial towns are all significant factors affecting farmers' participation in agricultural tourism activities in cameron. according to bagi et al. (2012) and yeboah et al. (2017), factors influencing the decision to participate in agricultural tourism include young age, farm size, internet availability, and farm location. malkanthi et al. (2015) conducted research in sri lanka and discovered that farmers' age and education level influence their decision to participate in agritourism activities. according to jungprabate (2018)'s research on agritourism in thailand, the primary characteristics determining farmers' participation in agritourism activities are gender, age, education, and work experience. additionally, research on agritourism in vietnam indicates that critical criteria include age, education level, region size, years of foreign tourism participation, trust, relationship with travel companies, and support for local officials (nguyễn, 2021; nguyen, 2018). since the 2010s, numerous studies on agritourism have been conducted worldwide, including in nepal (bhatta et al., 2019); india (ezung, 2011); cuba (duffy et al., 2017); and indonesia (nastiti, 2020). these studies indicate that the following factors influence the decision to participate in agritourism: gender, age, agricultural land area, income, membership in tourism associations, travel organisation, and location near commercial centres. the summary of the preceding empirical investigations indicates six distinct sets of factors influencing farmers' agbioforum, 21(3), 2022 | 17 dinh, vo, pham, and ngo. — factors affecting farmers' decisions to participate in agricultural tourism activities human capital age of household head education of household head physical capital area of agricultural land income access to the internet production model social capital join farmer associations, farmer unions, extension clubs. join tourism associations, travel organizations perceived usefulness market accessibility government support policy decisions to participate in agricultural tourism: human capital; physical capital; social capital; a sense of usefulness; market access; and government assistance policies are all examples of human capital. the study surveyed twenty tourism sector management specialists in can tho and soc trang to find particular sets of criteria that fit vietnam's features. ''human capital: age and education level of the household head. physical capital: agricultural land area, internet accessibility, production model on agricultural land, and income. social capital: household heads participate in farmer associations, unions, farmer clubs; the level of contact with agricultural extension officers; and join tourism associations, travel organizations. perceived usefulness: the head of the household perceives the benefits brought from agricultural tourism. market access: distance from farm to local malls. supporting policies of local authorities: investment in infrastructure (electricity, clean water, rural roads, internet transmission system, complete planning of local commercial centers), security management whole food, and local marketing program on agritourism. 3. research model and hypothesis further study is required to extend the theory, give additional empirical evidence, and develop theoretical policy implications related to the factors influencing the decision to join agricultural tourism. previous studies provide insight into the impact of factors influencing the decision to join agricultural tourism and quantify relationships using various distinct quantitative models such as statistical tests, linear regression, or separate regression models. however, they do not provide an adequate foundation for a comprehensive analytical framework on factors influencing the decision to join agricultural tourism. as such, the purpose of this work was to extend earlier findings and examine the correlations in the binary logistic regression model. this study chose the following research model for the mekong delta in vietnam (figure 1). fig. 1: research model hypotheses: based on the empirical studies, the study proposes the following hypothesis: h1: the age of the household head positively affects the decision to join agritourism; h2: the educational level of the household head positively affects the decision to join agritourism; h3: area of agricultural land positively affects the decision to join agritourism; h4: household's income positively affects the decision to join agritourism; h5: access to the internet positively affects the decision to join agritourism; h6: production model positively affects the decision to join agritourism; h7: joining farmer associations, farmer unions, extension clubs positively affect the decision to join agritourism; h8: joining tourism associations, travel organizations positively affect the decision to join agritourism; h9: joining tourism associations, travel organizations positively affect the decision to join agritourism; h10: positive perception of tourism positively affects the decision to join agritourism; h11: distance from the farm to the nearest central market positively affects the decision to join agritourism. agbioforum, 21(3), 2022 | 18 dinh, vo, pham, and ngo. — factors affecting farmers' decisions to participate in agricultural tourism activities table 1. definitions of variables and expectations no. variables code units expectation i dependent variable the decision to join agricultural tourism y yes = 1; no = 0 ii independent variables 1 human capital age of household head x1 number of years education of household head x2 level 1 = 0; level 2 = 1; level 3 = 2; intermediate & college = 3; university = 4 + 2 physical capital area of agricultural land x3 1000 m2 + income x4 million vnd + access to the internet x5 yes =1; no = 0 + production model x6 diversity = 1; no = 0 + 3 social capital join farmer associations, farmer unions, extension clubs x7 yes = 1; no = 0 + join tourism associations, travel organizations x8 yes = 1; no = 1 + 4 government support policy x9 yes = 1; no = 2 + 5 perceived usefulness (positive perception of tourism) x10 yes = 1; no = 3 + 6 market accessibility distance from the farm to the nearest central market x11 km 4. research design 4.1 quantitative model form of the research model: y = f(x1, x2,…,x11) general form of the linear regression model: xi: independent variables; y: dependent variable; u: residuals. according to howitt (2011), when the dependent variable is a dummy variable (dummy variable, y = 1; y = 0), the appropriate model is the binary logistic regression model. in this study, the dependent variable is a dummy variable. the binary logistic regression model is applied in this study. thus, the appropriate model is the binary logistic regression: of which: p(y=1) = p0: the probability of households join agritourism. p(y = 0) = 1 p0: the probability of households did not join agritourism. xi: independent variables (i: from 1 to 11); ln: log of base e (e = 2,714). odds coefficient (o0): 0 0 0 ( ecision to join agritourism) 1 (decide not to join agritourism) p p d o p p    substitute o0 into the equation (1): equation (2) has the form of a logit function, estimating the regression coefficients by the maximum likelihood (ml) method. all variables are presented in table 1. 4.2 data collection and processing we collected 480 observations in eight districts throughout four provinces in vietnam's mekong delta to represent various agro-ecological zones, including ben tre, an giang, soc trang, and can tho city. ben tre and soc trang have an alluvial freshwater environment, a mangrove ecosystem, and a sand dune ecosystem in its estuaries and coastal areas; can tho has an alluvial freshwater ecosystem and is the mekong delta's cradle. a giang's alluvial freshwater ecosystems and flooded woods are typical of the hau river's western area. these areas exhibit characteristics of agro-ecological tourism, including tourism to visit fruit orchards; homestay experiences; visits and experiences at traditional craft villages, khmer ethnic culture, and traditional music; and traditional dishes associated with coconut trees, sea crabs, fish sauce hotpot, and freshwater fish. from march 2018 to march 2019, all respondents were identified as head of households using a simple stratified sample technique. 450 observations were taken following (1) the odds log is a linear function with the independent variables xi (cox, 1958). (2) 0 1 i i n i y b bx u     0 0 1 1 11 11..lno b b x b x      0 1 1 2 2 3 3 11 11 1 .. ( 0) y ln b b x b x b x b x y              agbioforum, 21(3), 2022 | 19 dinh, vo, pham, and ngo. — factors affecting farmers' decisions to participate in agricultural tourism activities data processing to guarantee acceptability and usability for data analysis. spss version 21.0 software was used to process all data. direct interviews and thorough questionnaires were used to collect data to validate the research model and hypotheses. 5. results 5.1 describe the characteristics of the survey object gender and internet access: among 450 surveyed households, the male head of the household accounts for the majority (83%) (figure 2). the rate of households accessing the internet is 67.6% (figure 3). fig. 2: gender of household head (%) fig. 3: internet access (%) table 2. the mean value of the measures minimum maximum mean std. deviation ages (years) 20 63 41,49 10.983 area of agricultural land (1000 m2) 7 18 9,02 2.866 income for the year (million vnd) 11 27 18,37 4.289 distance from farms to the nearest commercial centers (km) 1 13 4,7 2.122 table 2 shows that the average age of the household head is 41; agricultural land area: 9000 m2; income: 18 million vnd; distance from farms to the nearest shopping centers: 5 km. production model on agricultural land: 84.2% of households apply a diversified production model. fig. 4: production model (%) 5.2 regression results table 3. variables in the equation b s.e. wald sig. exp(b) 95% c.i.for exp(b) female 17% male 83% 0 20 40 60 80 no yes 32.4 67.6 0 10 20 30 40 50 60 70 80 90 none diversification diversification 15.8 84.2 agbioforum, 21(3), 2022 | 20 dinh, vo, pham, and ngo. — factors affecting farmers' decisions to participate in agricultural tourism activities lower upper x1 -0.06 0.029 4.229 0.040 0.942 0.889 0.997 x2 1.264 0.549 5.301 0.021 3.538 1.207 10.374 x3 0.752 0.165 20.872 0.000 2.121 1.536 2.929 x5 1.919 0.898 4.566 0.033 6.817 1.172 39.649 x4 0.171 0.064 7.168 0.007 1.186 1.047 1.344 x6 2.135 0.736 8.408 0.004 8.457 1.998 35.808 x7 2.376 0.836 8.083 0.004 10.762 2.092 55.372 x8 0.988 0.485 4.149 0.042 2.686 1.038 6.95 x9 2.888 0.834 11.982 0.001 17.950 3.499 92.076 x10 2.29 0.681 11.304 0.001 9.877 2.599 37.536 x11 -0.542 0.175 9.572 0.002 0.582 0.413 0.82 constant -16.765 3.285 26.052 0.000 0.000 r2 nagelkerke 0.918 omnibus tests (sig.) 0.000 in table 3, wald's test shows that all variables have sig. ≤ 0.05. the sign of the regression coefficients is consistent with the hypothesis. r2 nagelkerke = 0.918, so the independent variables of the model explain 91,8% of the change in the dependent variable. omnibus testing with sig. ≤ 0.05, overall, the independent variables are linearly correlated with the dependent variable. thus, the independent variables that have a statistically significant impact on the y variable "decide to join agritourism" include: x1, x2, x3, x4, x5, x6, x7, x8, x9, x10, and x11. table 4. level of impact of factors affecting the decision to join agritourism initial probability p0 = 10% b eb pi (%) probability change (absolute value) position x1 -0.06 0.942 9.5 0.5 11 x2 1.264 3.538 28.2 18.2 6 x3 0.752 2.121 19.1 9.1 8 x5 1.919 6.817 43.1 33.1 5 x4 0.171 1.186 11.6 1.6 10 x6 2.135 8.457 48.4 38.4 4 x7 2.376 10.762 54.5 44.5 2 x8 0.988 2.686 23.0 13.0 7 x9 2.888 17.95 66.6 56.6 1 x10 2.29 9.877 52.3 42.3 3 x11 -0.542 0.582 6.1 3.9 9 note: how to calculate pi in appendix in table 4, the order of impact on "decide to join agritourism" is strongest to lowest: x9 (government support policy); x7 (join farmer associations, farmer unions, extension clubs); x10 (perceived usefulness); x6 (production model); x5 (access to the internet); x2 (education level of household head); x8 (join tourism associations, travel organizations); x11 (distance from the farm to the nearest central market); x4 (income); and x1 (age of household head). the results presented in table 5 show that: all hypotheses are accepted at a confidence level of over 95%. table 5. hypothetical results hypothesis impact estimate s.e. sig. decision h1 y <--x1 -0.060 0.029 0.040 fit h2 y <--x2 1.264 0.549 0.021 fit h3 y <--x3 0.752 0.165 0.000 fit h4 y <--x4 1.919 0.898 0.033 fit h5 y <--x5 0.171 0.064 0.007 fit agbioforum, 21(3), 2022 | 21 dinh, vo, pham, and ngo. — factors affecting farmers' decisions to participate in agricultural tourism activities h6 y <--x6 2.135 0.736 0.004 fit h7 y <--x7 2.376 0.836 0.004 fit h8 y <--x8 0.988 0.485 0.042 fit h9 y <--x9 2.888 0.834 0.001 fit h10 y <--x10 2.290 0.681 0.001 fit h11 y <--x11 -0.542 0.175 0.002 fit 5.3 predicted scenario for a change of joining agritourism the model’s regression equation: y = -16.765 0.06x1 + 1.264x2 + 0.752x3 + 0.171x4 + 1.191x5 + 2.135x6 + 2.376x7 + 0.988x8 + 2.888x9 + 2.290x10 0.542x11 (3) table 6. statistical value of variables and scenarios minimum maximum scenario 1 scenario 2 x1 20 63 63 20 x2 0 4 0 4 x3 7 18 7 18 x4 11 27 11 27 x5 0 1 0 1 x6 0 1 0 1 x7 0 1 0 1 minimum maximum scenario 1 scenario 2 x8 0 4 0 4 x9 0 1 0 1 x10 0 1 0 1 x11 1 13 13 1 scenario 1 (sce1): xi are independent variables with the lowest values according to the theoretical model expectations. scenario 2 (sce2): according to theoretical model expectations, xi are independent variables with the highest values. table 7. forecast with scenario of impacting factors values of variables no. variables regression coefficient (b) sce 1 sce 2 1 x1 -0.06 63 20 2 x2 1.264 0 4 3 x3 0.752 7 18 4 x4 1.919 11 27 5 x5 0.171 0 1 6 x6 2.135 0 1 7 x7 2.376 0 1 8 x8 0.988 0 4 9 x9 2.888 0 1 10 x10 2.29 0 1 11 x11 -0.542 13 1 12 constant -16.765 logodds -20.446 20.262 elogodds 0.000000 63048504 1+elogodds 1.000000 63048505 *e(y/xi): probability that y = 1 occurs is when the independent variable x has a specific value xi (%). 0 100 see appendix: *how to calculate e(y/xi). agbioforum, 21(3), 2022 | 22 dinh, vo, pham, and ngo. — factors affecting farmers' decisions to participate in agricultural tourism activities substitute the sce1 values into equation (3), resulting in logodds. if the household has the following conditions, this household has a probability of "decide to join agritourism" of 0%. x1 = 63 (age of household head); x2 = 0 (level of education, level 1); x3 = 7000 m2 (agricultural land area); x4= 11 million vnd/year (income); x5 = 0 (no internet access); x6 = 0 (none diversification); x7 = 0 (do not join farmer associations, unions, extension clubs); x8 = 0 (do not join tourism associations, travel organizations); x9 = 0 (no support policy of the local government); x10 = 0 (do not perceive benefits from agritourism; and x11 = 13km (distance from the farm to the nearest central market) (tables 6 & 7). substitute the sce2 values into equation (3), resulting in logodds. if the household has the following conditions, this household has a probability of "decide to join agritourism" of 100%. x1 = 20 (age of household head); x2 = 4 (level of education, university); x3 = 18,000 m2 (agricultural land area); x4= 27 million vnd/year (income); x5 = 0 (internet access); x6 = 0 (diversification); x7 = 1 (join farmer associations, unions, extension clubs); x8 = 1 (join tourism associations, travel organizations); x9 = 1 (support policy of the local government); x10 = 1 (perceive benefits from agritourism; and x11 = 1km (distance from the farm to the nearest central market) (tables 6 & 7). 6. discussion and policy implication to begin, the study defined six categories of elements that influence agritourism participation: human capital, physical capital, social capital, useful perception, market accessibility, and government support policy. the category of factors referred to as "human capital" comprises the household head's age and educational level. this finding is consistent with malkanthi et al. (2015).'s study on agricultural tourism in sri lanka and bhatta et al study's on rural tourism in bhatta et al. (2019). the term "physical capital" refers to a combination of characteristics that includes agricultural land acreage, internet connectivity, diverse production strategies, and household income. this finding is consistent with yeboah’s (2017) findings on farmer participation in agritourism activities in north california, usa. social capital determinants include the following: membership in farmer associations, mass organisations, agricultural extension clubs, membership in tourism associations, tourism organisations. this finding is consistent with ha hong nguyen's study of agricultural tourism in nguyen (2018). the combination of criteria referred to as "perceived utility" and "market accessibility" includes perceived benefits and the distance between the farm and the nearest commercial area. this finding is consistent with kunasekaran's (2012) research on agritourism in cameron and bagi et al. (2012) research on agritourism in the united states (2021). the factor category "policy to assist the government" corresponds to the findings of dung thai nguyen's research on agricultural tourism in nguyen (2018). second, the study quantified the impact of each element on a scale of strong to weak: support local government policy; join farmer associations, unions, and extension clubs; take use of the benefits; diverse modes of production; internet access; education level; membership in tourism and travel associations; the distance between the farm and the nearest commercial hub; income; and the head of the household's age. this finding implies that in order to increase farmers' ability to participate in agricultural tourism, they should prioritise the following: (i) local governments should prioritise infrastructure investment (electricity, clean water, rural roads, internet transmission system, comprehensive planning of the local commercial centre), food safety management, and a local agricultural tourism marketing programme; and (ii) agricultural tourism associations, clubs (farmers join the association and clubs are educated about the benefits of agritourism, particularly household heads who are young and earn a high income from agriculture; farmers are trained in necessary skills and agricultural tourism activities that complement the local tourism strengths); and (iii) a policy is in place to focus on raising the educational level of farmer's children. 7. conclusions and limits of the research this study aims to develop the theoretical framework and give empirical evidence on the behaviour of farmers engaged in agritourism in the mekong delta of vietnam. the binary logistic regression analysis model results demonstrate the significant importance of factors influencing the decision to participate in agritourism. certain restrictions apply to this investigation. the survey subjects were drawn from only four regions in vietnam's mekong delta, limiting the study's generalizability. future research should examine and compare various provinces and areas in vietnam to increase the generalizability of the findings. additionally, this study addresses only 11 criteria that influence whether or not to participate in agritourism. acknowledgement: this research is partly funded by the university of economics ho chi minh city (ueh), vietnam. references gso. 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(2017). factors influencing agritourism adoption by small farmers in north carolina. journal of agricultural extension and rural development, 9(5), 84-96. doi:https://doi.org/10.5897/jaerd2016.0845 https://sarep.ucdavis.edu/sustainable-ag/agritourism https://sarep.ucdavis.edu/sustainable-ag/agritourism https://doi.org/10.1086/209170 https://doi.org/10.1111/j.1467-9272.2006.00565.x https://doi.org/10.1111/j.1467-9272.2006.00565.x https://eric.ed.gov/?id=ed453564 https://doi.org/10.5897/jaerd2016.0845 agbioforum, 21(3), 2022 | 25 dinh, vo, pham, and ngo. — factors affecting farmers' decisions to participate in agricultural tourism activities appendix calculate pi: assuming the initial probability of a household decides to participate agritourism is (p0), the probability that this household will be pi due to the effect of the variable xi. according to agresti (2007), pi is defined as follows: ebi: impact coefficient of xi predicted scenario for a change of poor households: according to agresti (2007), the predictive form of the model: e (y/xi): the probability that y = 1 occurs when the independent variable x has a specific value xi. 0 01 (1 ) b ip e pi b ip e     ( / ) 1 lnoddse e y xi lnoddse   0 1 1 2 2 3 3 11 11..lnodds b b x b x b x b x      0 1 1 2 2 3 3 .. 11 11 0 1 1 2 2 3 3 .. 11 11( / ) 1 b b x b x b x b x b b x b x b x b x e e y xi e            0 01 (1 ) b ip e pi b ip e     agbioforum, 25(2): 23-31. ©2023 agbioforum the role of rice cultivation techniques, farm management and natural resources on agricultural development in indonesia: moderating role of government support apiaty kamaluddin facultyof agriculture, universitas pepabri makassar, indonesia email: apiatyamin53@gmail.com agricultural development is crucial for global economic growth and warrants the researcher's attention. this article examines the influence of rice cultivation techniques, farm management, and natural resources on agricultural development in indonesia. this study investigates the moderating effect of government support on rice cultivation techniques, farm management, natural resources, and agricultural development in indonesia. the researchers employed a survey questionnaire to collect primary data from the chosen participants. the researchers used smart-pls to analyse the relationship between variables. the study findings indicate that rice cultivation techniques, farm management, and natural resources play a beneficial role in promoting agricultural development in indonesia. the findings suggest that government support plays a significant role in moderating the relationship between rice cultivation techniques, natural resources, and agricultural development in indonesia. the study provides guidance to policymakers on policies aimed at improving agricultural development through the implementation of effective rice cultivation techniques, farm management, and the sustainable use of natural resources. keywords: rice cultivation techniques, farm management, natural resources, government support, agricultural development. 1. introduction in recent decades, the global community has encountered various challenges, with the sustainability of the agriculture sector being particularly significant. the agriculture sector is confronted with significant challenges such as climate change, natural resource depletion, and inadequate agricultural technologies. the challenges faced by the agriculture industry hinder its ability to meet the growing global food demand. agriculture plays a vital role in the economic development of every nation. agriculture plays a dual role in a country's economy by providing sustenance for its population and fostering interdependence with other industries. the stability of a country's agriculture sector is considered crucial for its overall social, political, and economic stability. in contrast, individuals in developing countries who depend on agriculture as their primary source of income tend to have lower socioeconomic status compared to those employed in alternative sectors of the economy. in many countries, a significant portion of the population living in poverty is comprised of individuals engaged in agricultural activities. consequently, the agricultural sector has experienced enhanced overall performance. improving the agriculture sector is crucial due to its role in generating employment opportunities for local inhabitants. agriculture is commonly considered to be the primary economic sector in developing countries. according to tudi et al. (2021), the agricultural sector contributes to approximately 30– 60% of the total gross domestic product (gdp) and employs approximately 70% of the total workforce. agriculture in developing nations exhibits a significant labour force in comparison to other industries. agriculture serves as the primary employment sector in most developing nations. the farm owner often finds it necessary to hire additional labourers to effectively manage the cultivation of the land and the care of the cattle (qaim, 2020). work opportunities in the agricultural sector are diversifying beyond traditional farming to include areas such as agriculture processing, advertising, and packaging. improvements in the agricultural sector have the potential to significantly reduce unemployment rates in emerging nations. addressing hunger, poverty, and ensuring the sustainability of agricultural and food systems pose significant challenges in the present era. ensuring the provision of clean and fresh food for future generations is a significant priority, particularly in light of the increasing global population (basso & antle, 2020). global food production is outpacing both population growth and per capita consumption. the global population is projected to surpass 10 billion individuals by 2050, representing 34% growth compared to the current population (griesche & baeumner, 2020). the developing world is projected to contribute significantly to the overall increase in global population. natural resources, farmers' abilities, farm management, agriculture technologies, and government support are just a few of the variables that can make or break the agriculture industry (alizamir, iravani, & mamani, 20119; klerkx & jansen, 2010; koohafkan, altieri, & gimenez, 2012; singh et al., 2017; wright & annes, 2016). this study focuses on the impact of cultivation techniques, farm management practices, and natural resources on the development of agriculture. the study also examined the moderating effect of government support. 2. aims and objectives over the course of time, various industries across the globe are undergoing a process of modernization. certain industries, such as agriculture, exert significant influences on the nation. agriculture serves the dual purpose of mailto:j.dalle@ulm.ac.id agbioforum, 25(2), 2023 | 24 kamaluddin — the role of rice cultivation techniques, farm management and natural resources on agricultural… meeting the nutritional requirements of a population while also making significant contributions to a nation's economy. the performance of the agriculture industry is contingent upon the integration of contemporary technologies in cultivation practises, which serve to enhance its overall efficacy. in the present study, hu et al. (2019) examined the interrelationship between various cultivation methods, rice growth, and development. the investigation focused on examining the relationship within the population of china. the study utilised a quantitative approach. a sample was collected consisting of quantitative data from fragrant rice cultivars with a growth period ranging from 111 to 114 days. the sample data utilised in this study was collected from a plantation in the year 2017. to investigate the aforementioned relationship, the analysis methods outlined in statistics 8.1 were utilised. the analysis results indicate that various rice cultivation methods, such as direct seeding and transplanting, significantly influence both the growth and development of rice. lakhiar et al. (2018) investigated contemporary plant cultivation technologies in modern agriculture. the study also examined the controlled environment. the study conducted a review of existing literature. the review findings indicate that modern cultivation technologies significantly impact contemporary agriculture. moreover, the implementation of advanced plant cultivation technologies leads to a revolution in the agricultural industry and subsequently enhances production. in light of the growing global food demand, it is imperative to embrace innovative methods of crop cultivation to not only sustain agriculture but also meet the nutritional requirements. food varies globally. certain practises or preferences may be favoured in developed economies, while they may not be as preferred or applicable in developing economies. several factors contribute to this phenomenon, including resource availability and land and water-related concerns. mushrooms are highly regarded as a popular food item worldwide. the high demand for this product significantly impacts the agriculture sector. higgins et al. (2017) conducted research on mushroom cultivation. the study also examined and compared different cultivation technologies. the study focused on developing economies. the study conducted a review of the existing literature. the extracted results from the review were subsequently combined to compare various cultivation methodologies in terms of cost, required resources, and overall performance. mushroom farming in underdeveloped countries presents both challenges and opportunities. two significant challenges faced in impoverished regions include issues related to spore production as well as post-harvest transportation and storage. the decided hypothesis is as under: h1: cultivation techniques have an association with agriculture development. the performance of the agriculture sector depends on various factors, including land type, farmers' skills, farm management, cultivation techniques, and related factors. farm management is a crucial determinant that exercises control over other factors. existing literature suggests a strong connection between farm management and agricultural development. said mohamed et al. (2021) investigated the impact of smart farming on agriculture management, specifically focusing on the role of farm management. the study also examined the utilisation of contemporary farming technologies to enhance agricultural productivity. this study focused on the implementation of a novel smart farming approach worldwide between 2019 and 2021. the study findings suggest that smart farming has a significant impact on the agriculture industry. the integration of modern technologies such as artificial intelligence, the internet of things, and mobile internet has the potential to revolutionise contemporary farming practices. this can lead to increased productivity and reduced human intervention in agricultural processes. additionally, the study suggests that the global community should embrace contemporary agricultural technologies, especially in developing nations, in order to meet the demand for food. rose et al. (2019) investigated the role of integrated farm management in sustainable agriculture. the study also examined knowledge exchange and policy. the study utilised interview data from farms as a representative sample. interviews were conducted with a sample size of 78 farmers from various farming groups. the study findings suggest that integrated farming significantly impacts the agricultural industry. integrated farming involves the utilisation of modern agricultural technologies, leading to enhanced food production. moreover, the study suggests that global adoption of modern farming technologies, particularly in developing economies, is necessary to meet the growing demand for food. sarker et al. (2019) investigated the use of digital agriculture in promoting sustainable farm management. the study conducted a review of the relevant literature. the study used articles published in 2006 as a representative sample. the chosen time period spans from 2012 to 2018. the articles were obtained from various research engines, such as google scholar, sage, and taylor & francis. the findings suggest that digital agriculture significantly impacts the practice of sustainable farm management. additionally, the study suggests that global adoption of digital agriculture could improve agricultural productivity and meet food demands. the decided hypothesis is as under: h2: farm management has an association with agriculture development. the availability of natural resources significantly impacts the agricultural sector's outcomes in any given country. every nation strives to optimise the utilisation of its natural resources in order to achieve maximum productivity. lu, bai, li, and wang (2019) investigated the interconnections between climate change, natural resources (specifically water resources), and agriculture. the research was carried out on the agricultural sector in china. the findings suggest a significant impact of climate change on global natural resources. natural resources are diminishing over time. the depletion of natural resources has a negative impact on global agriculture. agbioforum, 25(2), 2023 | 25 kamaluddin — the role of rice cultivation techniques, farm management and natural resources on agricultural… additionally, the study suggests that global efforts should be made to address the negative impacts of climate change in order to mitigate the depletion of natural resources and increase agricultural production to meet food demands. jiang et al. (2017) investigated the sustainability of natural resources (i.e., waters), in relation to agriculture, focusing on grain production, trade, and consumption. the research was carried out in the agricultural sector in china. the study examined the period of tenure between 2004 and 2013. the findings indicate a significant correlation between agriculture and the sustainability of natural resources. as a result, sustainable management of natural resources leads to increased grain production in order to meet the growing global food demand. additionally, the study suggests that global efforts should be made to regulate the sustainable use of natural resources in order to enhance agricultural production and meet the growing demand for food. aghapour sabbaghi, nazari, araghinejad, and soufizadeh (2020) examined the economic impact of climate change on natural resources, specifically water and agriculture. the research was carried out on the agricultural sector in iran. the findings suggest that climate change significantly impacts natural resources (i.e., waters) and agriculture in terms of their economic implications. additionally, the study suggests that global attention should be directed towards addressing the economic implications of climate change and its detrimental effects. the decided hypothesis is as under: h3: natural resources have an association with agricultural development. the implementation of contemporary cultivation methods is regarded as a crucial element in the prosperity of a nation's agricultural industry. the divergence in the agricultural industries' outcomes between the two economies can be attributed to the varying levels of adoption of contemporary technologies, specifically in cultivation techniques. despite the implementation of modern technologies, the agricultural industry often fails to achieve the desired levels of productivity. government support moderates the relationship between factors in this context. kim, kim, suh, and zheng (2016) examined the relationship between service innovation, r&d activities, and the support system in the context of moderation. the study also examined the influence of government support as a moderating factor. the study examined the relationship within the korean population. the study utilised a quantitative approach. the quantitative data of 54831 companies was taken as a sample. the study used the simple random sampling technique. the selected data collection was carried out through questionnaires. for the examination of the aforementioned relationship, the mr analysis approach was employed. the results extracted after analysis proposed that service innovation has a nexus with r&d activities as well as a support system. further, government support moderates the nexus aimed at service innovation and r&d activities as well as the support system. similarly, saberi and hamdan (2019) checked the nexus aimed at entrepreneurship and economic growth. the study also explored the moderating effect of government support. the relationship was investigated in the population of gcc economies. the quantitative approach was adopted in the study. a sample consisting of quantitative data from a 10-year period was collected. the study employed simple random sampling. the chosen date falls within the period from 2016 to 2015. to examine the relationship mentioned above, the study utilised the smartpls analysis approach. the results of the analysis suggest a relationship between entrepreneurship and economic growth. moreover, government assistance plays a crucial role in fostering the connection between entrepreneurship and economic growth. the decided hypothesis is as under: h4: government support moderates the nexus aimed at cultivation techniques and agriculture development. effective farm management is crucial for the overall success and sustainability of the agriculture sector. despite effective farm management, the agricultural sector often fails to achieve improved performance. various factors contribute to this phenomenon, including government policies pertaining to agriculture and the proficiency of farmers. government support affects this relationship by acting as a moderator. seow, choong, and ramayah (2021) examined the relationship between enterprise business performance and the tourism industry within the context of moderation. the study also examined how government support influences the relationship between variables as well as how innovative practice mediates this relationship. the study examined the relationship within the malaysian population. the study employed a quantitative approach. a sample of 278 businesses was collected for quantitative data analysis. the study employed the quota sampling technique. data collection was conducted using questionnaires. to analyse the relationship mentioned above, we utilised the pls-sem analysis approaches. the analysis results suggest a correlation between enterprise business performance and the tourism industry. additionally, the government provides support for both traditional and innovative practises that facilitate the connection between enterprise business performance and the tourism industry. kim, oh, park, and joo (2018) examined the relationship between perceived value and intentions to adopt electric vehicles. the study also examined how government support and environmental traits moderate the effects. the study examined the relationship within the korean population. the study employed a quantitative approach. a sample of 285 drivers was used to collect quantitative data. the study employed simple random sampling. data collection was conducted using questionnaires. to analyse the relationship mentioned above, ml regression analysis methods were used. the analysis results suggest a relationship between perceived value and intentions to adopt electric vehicles. additionally, the relationship between perceived value and intentions to adopt electric vehicles is influenced by government support and environmental characteristics. the decided hypothesis is as under: h5: government support moderates the nexus aimed at farm management and agriculture development. agbioforum, 25(2), 2023 | 26 kamaluddin — the role of rice cultivation techniques, farm management and natural resources on agricultural… the presence of ample natural resources does not ensure agricultural prosperity. farmers often fail to effectively utilise resources, resulting in suboptimal output. in this scenario, the government provides support to professionals in the agriculture sector to assist farmers, aiming to enhance the performance of the agriculture sector by serving as mediators. tse et al. (2021) examined the relationship between moderation and the nexus of research and development (r&d) and innovation. the study also examined how government support and entry mode influence the relationship in question. the study examined the relationship within the population of multinational enterprise (mne) subsidiaries. the study employed a quantitative approach. a sample of 524 firms was used to collect quantitative data. the study employed random sampling. data collection was conducted using questionnaires. to analyse the relationship mentioned above, regression analysis methods were utilised. the analysis results suggest a correlation between research and development (r&d) and innovation. additionally, the relationship between research and development (r&d) and innovation is influenced by government support and the mode of entry into the market. yang and liu (2023) examined the relationship between sdgs, financial knowledge, investment strategies, and organisational profitability. the study also examined the influence of government support as a moderator. the study examined the relationship within the chinese population. the study employed a quantitative approach. a sample of 540 employees was used to collect quantitative data. the study employed a simple random sampling method. the data collection was conducted using questionnaires. to analyse the relationship mentioned above, we utilised smart-pls analysis methods. the analysis revealed a significant relationship between sdgs, financial knowledge, investment strategies, and organisational profitability. government support and entry modes play a moderating role in the relationship between sustainable development goals (sdgs), financial knowledge, investment strategies, and organisational profitability. the decided hypothesis is as under: h6: government support moderates the nexus aimed at natural resources and agriculture development. 3. research significance the present study aims to: 1) elucidate the significance of agricultural development in addressing global food demand; 2) contribute to the existing literature on food agriculture development, with a specific focus on indonesia; 3) enhance the understanding of professionals in the agriculture industry regarding the sector's requirements; and 4) identify the necessary measures to achieve sustainability. lastly, it aims to provide insights to professional. 4. structure of review this study aims to address literature gaps related to the model consisting of variables such as cultivation techniques, farm management, natural resources, and agriculture development, with a specific focus on the moderating effect of government support in indonesia. these gaps have not been extensively explored in recent research. 1) higgins et al. (2017) and lakhiar et al. (2018) investigated the relationship between cultivation techniques and agricultural development. in addition, they examined the impact of factors such as farm management, natural resources, and government support on this relationship in indonesia, 2) rose et al. (2019) and sarker et al. (2019) investigated the relationship between farm management and agriculture development. in addition to this, they examined the impact of cultivation techniques, natural resources, and government support as moderating factors in indonesia. 3) lu, bai, li, and wang (2019) investigated the relationship between natural resources and agricultural development, specifically examining the impact of cultivation techniques, farm management, and government support as moderating factors in indonesia, 4) kim, kim, suh, and zheng (2016), saberi and hamdan (2019), and seow, choong, and ramayah (2021) have examined the moderating effect of government support in various contexts. in addition, government support is also used as a moderating variable in the context of cultivation techniques, farm management, natural resources, and agriculture development, specifically in indonesia. 5. research method this article examines the influence of rice cultivation techniques, farm management, and natural resources on agricultural development in indonesia. it also explores the moderating effect of government support on these factors. the researchers employed a survey questionnaire to collect primary data from the chosen participants. the questionnaire used in this study was derived from previous literature. the cultivation techniques section consisted of five questions (ammatillah, sutardi, aminah, & nurmalinda, 2022), the farm management section had six questions (takeuchi-storm et al., 2019), the natural resources section included five items (grilli & notaro, 2019), the government support section comprised of four questions (zulu-chisanga, chabala, & mandawa-bray, 2021), and the agricultural development section consisted of five questions (kustepeli, gulcan, yercan, & yıldırım, 2023). the primary data for this study was collected from indonesian farmers. the farmers were selected using a simple random sampling method. the surveys were administered to farmers through in-person visits. out of the 534 surveys sent by the researchers, only 290 valid responses were received, indicating a response rate of approximately 54.31%. additionally, the researchers used smart-pls to analyse the relationship between variables. smart-pls is a statistical tool commonly employed for analysing primary data. it is particularly effective when dealing with larger data sets and intricate frameworks (hair, howard, & nitzl, 2020). the study employed three predictors, namely cultivation techniques (ct), farm management (fm), and natural resources (nr). additionally, the study incorporated a moderating construct called government support (gs) and a predictive construct known as agricultural development (ad). the constructs are depicted in figure 1. agbioforum, 25(2), 2023 | 27 kamaluddin — the role of rice cultivation techniques, farm management and natural resources on agricultural… figure 1: research framework 6. results 6.1 research findings this study investigates the convergent validity of items by examining their correlation. the examination involves the use of average variance extracted (ave) and factor loadings, both of which indicate values higher than 0.50. furthermore, the study also assessed the construct's reliability using composite reliability (cr) and alpha. the findings revealed that the obtained values exceeded the threshold of 0.70. the results suggest a strong correlation among the items. the outcomes are presented in table 1. table 1: convergent validity constructs items loadings alpha cr ave agricultural development ad1 0.695 0.774 0.845 0.526 ad2 0.652 ad3 0.609 ad4 0.783 ad5 0.859 cultivation techniques ct1 0.880 0.858 0.907 0.714 ct2 0.647 ct3 0.907 ct5 0.916 farm management fm1 0.888 0.898 0.922 0.667 fm2 0.676 fm3 0.754 fm4 0.925 fm5 0.756 fm6 0.871 government support gs1 0.827 0.901 0.931 0.773 gs2 0.937 gs3 0.805 gs4 0.939 natural resources nr2 0.921 0.785 0.873 0.698 nr4 0.858 nr5 0.713 this study investigates the discriminant validity of variables and their correlations. the heterotrait monotrait (htmt) ratio is used for examination. the results indicate that the htmt ratio values are below 0.90. the results suggest a low correlation among the variables. the outcomes are presented in table 2. table 2: discriminant validity ad ct fm gs nr ad ct 0.861 fm 0.675 0.768 gs 0.455 0.320 0.249 nr 0.874 0.668 0.498 0.732 figure 2: measurement assessment model the findings indicate that rice cultivation techniques, farm management, and natural resources positively influence agricultural development in indonesia, supporting hypotheses h1, h2, and h3. the results of the study suggest that government support plays a significant role in moderating the relationship between rice cultivation techniques, natural resources, and agricultural development in indonesia. this finding supports hypotheses h4 and h6. the nexus mentioned can be found in table 3. table 3: path analysis relationships beta standard deviation t statistics p values ct -> ad 0.343 0.055 6.281 0.000 fm -> ad 0.123 0.046 2.649 0.008 gs -> ad 0.092 0.043 2.132 0.033 nr -> ad 0.542 0.044 12.231 0.000 gs x nr -> ad 0.216 0.046 4.660 0.000 gs x ct -> ad 0.134 0.049 2.718 0.007 gs x fm -> ad 0.009 0.050 0.185 0.853 figure 3: structural assessment model 7. findings the study reveals that agricultural development is significantly influenced by cultivation techniques, farm management practices, and the availability of natural resources. according to irvan and yuliarmi (2019) research, cultivation techniques play a crucial role in agricultural development by offering various advantages that contribute to enhanced production and sustainability. one significant advantage is evident in the domain of soil cultivation techniques farm management natural resources government support agricultural development agbioforum, 25(2), 2023 | 28 kamaluddin — the role of rice cultivation techniques, farm management and natural resources on agricultural… health. crop rotation and no-till farming are effective strategies for preserving soil moisture and maintaining organic matter levels (rusinamhodzi, 2020). this promotes nutrient-rich soils, which create optimal conditions for plant growth. in addition, farmers can utilise precision agriculture techniques, such as gps and remote sensing, to accurately apply inputs. this practice decreases waste and mitigates environmental consequences. these methods enhance resource efficiency by optimising agricultural yields and reducing the ecological impact of agriculture. cultivation methods contribute to the resilience and diversification of agricultural systems. intercropping and agroforestry techniques mitigate the risks associated with monoculture by enhancing biodiversity and simultaneously enhancing overall yield. diversification can enhance the resilience of agricultural systems against climate disasters and market crashes. the implementation of modern irrigation methods, such as drip irrigation and precision watering systems, can significantly enhance water efficiency. kamaludin, narmaditya, wibowo, and febrianto (2021) found that these methods effectively reduce water wastage and alleviate strain on water resources in regions facing water scarcity. this is achieved by directly supplying water to the root zone. the study's findings indicate that effective farm management is a crucial factor in achieving successful outcomes in agricultural development. according to mariyono (2019), farm management encompasses a range of actions and decisions that collectively aim to optimise resources, increase productivity, and ensure the long-term sustainability of farming activities. efficient resource allocation is a key benefit of effective farm management. farmers can optimise resource allocation, such as seeds, fertiliser, and water, by employing strategic planning, budgeting, and decision-making techniques to minimise waste and maximise production. increasing the supply of products in the market contributes to improving food security and increasing financial incentives for farmers. zhai, martínez, beltran, and martínez (2020) found that effective farming management promotes environmental responsibility. likewise, otieno, zingore, chemining‘wa, and gachene (2020) and jowett et al. (2022) emphasise the importance of ecological balance and sustainability. they highlight the implementation of techniques such as conservation tillage, integrated pest management, and agro-ecological approaches as means to achieve these goals. these initiatives promote environmentally sustainable practices in the agriculture industry, aiming to mitigate soil erosion, minimise chemical runoff, and reduce greenhouse gas emissions. the utilisation of natural resources is a crucial factor in the growth of agriculture, playing a significant role in enhancing the sustainability and productivity of the industry. irvan and yuliarmi (2019) research supports the statement that soil fertility is a fundamental natural resource that directly impacts plant growth and agricultural productivity. crop yields rely on nutrient uptake, water retention, and root development, which are facilitated by fertile and well-structured soils (rusinamhodzi, 2020). water resources play a vital role in agriculture, as highlighted by kamaludin, narmaditya, wibowo, and febrianto (2021). therefore, it is imperative to ensure their sustainable management. adequate irrigation is crucial in arid regions or during periods of drought to ensure that crops receive the necessary moisture. this statement holds true when wise water conservation practices are implemented. the utilisation of natural resources is a crucial factor in the growth of agriculture, playing a significant role in enhancing the sustainability and productivity of the industry. irvan and yuliarmi (2019) research supports the claim that soil fertility is a fundamental natural resource that directly influences agricultural productivity and plant growth. fertile and well-structured soils facilitate root development, nutrient intake, and water retention, all of which affect crop yields (rusinamhodzi, 2020). according to kamaludin, narmaditya, wibowo, and febrianto (2021), water resources play a crucial role in agriculture, necessitating sustainable management. sufficient irrigation is crucial in arid regions or during periods of drought to ensure that crops receive the necessary moisture. this holds true when coupled with prudent water conservation practices (sulaiman, sulaeman, & minasny, 2019). the study's findings indicate that government support plays a significant role in mediating the complex relationship between cultivation methods, farm management, natural resources, and agricultural development. raihan et al. (2022) found that governments exert substantial influence on agricultural practises and outcomes through the implementation of policies, incentives, and regulatory frameworks. farmers can be incentivized to adopt innovative techniques, such as precision agriculture or organic farming, which enhance productivity and sustainability, through the provision of subsidies and grants (magdalena & suhatman, 2020). like other regulatory frameworks, laws that promote effective farm management practises, such as crop rotation and integrated pest control, aim to encourage efficient resource utilisation and risk mitigation strategies. valetskaya, vorobyova, and torgashova (2020) argue that government assistance is necessary to foster a supportive environment for agricultural development. investing in rural infrastructure, including roads, irrigation systems, and market facilities, facilitates the efficient movement of goods and services, thereby enhancing the connectivity between farmers and larger markets. in addition, policies that provide financial support, insurance, and technical knowledge enable farmers to adopt innovative practises and overcome unforeseen challenges (moeis, dartanto, moeis, & ikhsan, 2020). in conclusion, government assistance plays a vital role in connecting farming practises, farm management, natural resources, and the progress of agriculture. thoughtfully designed policies and programmes can stimulate positive transformations in the agricultural sector, fostering sustainability, resilience, and economic growth. agbioforum, 25(2), 2023 | 29 kamaluddin — the role of rice cultivation techniques, farm management and natural resources on agricultural… 8. contributions and implications the study has significant implications for agricultural policy and practice. the results emphasise the importance of integrated strategies that consider farming practices, farm management, and resource management as interconnected components for promoting sustainable agriculture. this viewpoint highlights the importance of tailored solutions that consider the complex dynamics of agricultural systems. moreover, the involvement of the government as a moderating factor underscores the significant influence of policy and regulatory frameworks on the outcomes of agricultural development. 9. future research work to encourage the adoption of best practises, policymakers should prioritise the development and implementation of supportive measures, including funding, incentives, and regulatory frameworks. the study provides guidance to policymakers on formulating policies to improve agricultural development through the implementation of effective rice cultivation techniques, farm management, and sustainable use of natural resources. 10. limitations the present study yields noteworthy implications; however, it is not without its limitations. the potential variations in agricultural environments across different regions or countries may pose challenges to the generalizability of the research. various socioeconomic, climatic, and institutional factors may have an impact on the efficiency of farming practices, government initiatives, and cultivation techniques. furthermore, it is plausible that the study may not have comprehensively accounted for all potential confounding variables that have the potential to impact agricultural growth. further examination and assessment of additional variables that could potentially influence the observed associations would be advantageous in future research endeavours. references aghapour sabbaghi, m., nazari, m., araghinejad, s., & soufizadeh, s. 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green employee empowerment; voluntary environmental behavior; ethical climate; sustainable performance 1. introduction consensus on sustainability has spread around the world. organizations now have the legal status of citizens and are regarded as having direct social effects on the society in which they operate, particularly on the environment. this is a new idea. for businesses to achieve sustainable development, environmental protection must be one of their duties. however, creating and maintaining sustainable business operations can be difficult because it calls for widespread agreement and teamwork from all stakeholders (jawaad et al., 2020; koirala et al., 2020). to increase sustainable performance and competitive advantage, managers should demonstrate sustainability ideas that might encourage employees' behavioral intentions toward environmental conservation (rubel et al., 2021; uddin et al., 2021). a firm's ability to dynamically achieve sustainable performance in financial, societal, and environmental aspects can be strengthened by appropriate leadership, which can foster mutual learning, create an environment of environmental responsibility within the organization, and encourage voluntary environmental behavior (pureza et al., 2020; tariq et al., 2020; zhang et al., 2021). employees, who serve as an organization's front-line staff, also play a vital part in developing and implementing goals and objectives and substantially impact organizational success. employees spend at least a third of their waking hours at work, and their environmental behaviors daily significantly reduce the detrimental effects of office activities on the corporate environment (lülfs et al., 2013). whatever executives and employees believe, it is important to consider ways to encourage employees' environmental behavior better to achieve sustainable performance. investigating the combined effects of leadership, empowerment, and organizational climate is essential to achieve the desired sustainable performance (yusof et al., 2020). this study examines the influence of managers' ethical leadership on the long-term success of business organizations in light of their crucial role in establishing sustainable company performance. more detail, it looks at how ethical leadership affects voluntarily adopted environmental behavior that is in line with a supportive ethical environment and leads to long-term sustainable performance. despite the well-established impact of ethical leadership on several elements of employees' behavior, there has not been much empirical research on how ethical leadership affects long-term organizational success. by using employees' voluntary environmental behavior as a mediator and the moral climate as a moderator in the relationship between ethical leadership and sustainable performance through employees' environmental behavior, the study will assess the effects of ethical leadership on sustainable performance (sanjay sharma, 2021). employee empowerment is one of the most critical factors in attaining an organization's ecological goals (kitazawa et al., 2000). employees must feel empowered and have opportunities to provide solutions and make choices that will improve the environment (zibarras et al., 2015). according to paillé et al. (2022), feeling empowered is a prerequisite for workers to perform the necessary green task. according to glavaš et al. (2018), employees need to derive meaning from both their work and the company as a whole because the latter cares about the interests of external stakeholders. therefore, employees are expected to act pro-environment when they feel empowered, accepted, and have the authority to make decisions about their employment. mailto:xshuya2022@163.com mailto:sitirohaidabinti@163.com agbioforum, 24(2), 2022 | 207 shuya and zainal. — how to achieve better sustainable performance: the role of ethical leadership and green…. 2. theory and hypotheses development 2.1 defining the variables 2.1.1 voluntary environmental behavior environmental activity is divided into mandatory and optional environmental behavior, according to norton et al. (2015). the degree to which employees carry out necessary responsibilities that save resources and protect the environment, such as adopting green practices or choosing eco-friendly alternatives, is referred to as mandated green behavior. in other words, the needed green conduct shows that environmental preservation is a part of the processes used to complete in-role activities. employees' pro-environmental actions that are optional and go beyond the scope of in-role responsibilities are referred to as voluntary environmental behavior. examples include turning off the electricity when leaving the office and recycling reusable materials at work. this study focuses on voluntarily adopting green workplace practices. studies have shown that certain human and environmental factors may impact employee environmental behavior (a. kim et al., 2017; norton et al., 2015). numerous research has investigated the effects of individual characteristics, such as environmental ideals, norms, attitudes, and enthusiasm, on employee environmental behavior (andersson et al., 2005; norton et al., 2017). additionally, studies seem to indicate that some workplace variables may affect the environmental behaviors of employees. examples of factors that have been shown to affect employee environmental behavior include job satisfaction (a. kim et al., 2019), organizational commitment (paillé et al., 2014), and support (paillé et al., 2013). 2.1.2 ethical leadership. previous studies have shown that moral leadership favors encouraging employees' environmental behavior (hay, 2010). according to brown et al. (2005), an ethical leader has two distinguishing qualities, namely that they are both moral individuals and moral managers. ethical leaders adhere to the code of ethics, laws, and regulations by exhibiting these traits. endorsing norms, policies, methods, and behaviors fix ethical and moral resonance (pasricha et al., 2018). 2.1.3 sustainable performance sustainability is the driving force behind moral leaders' ability to deliver sustainable performance (iqbal, ahmad, & halim, 2020; iqbal, ahmad, nasim, et al., 2020). morally responsible leaders create and put into practice organizational sustainable policies and practices to aid in preserving and enhancing the environment (khan et al., 2019). 2.1.4 green employee empowerment according to spreitzer (1995), four cognitions contribute to an employee's independence in decision-making. the four cognitions, according to spreitzer, are meaning, competence, impact, and self-determination. according to baird et al. (2010), employee empowerment is the transfer of authority and responsibility from a higher to a lower level. according to maynard et al. (2012), meaning is "an individual's extent of caring about a task," competence is "the belief individuals hold regarding their capability to perform their work activities skillfully," impact is "the degree to which individuals view their behavior as making a difference or the extent to which they influence operating outcomes." self-determination is "one's sense of autonomy or control over immediate work behaviors and outcomes" (p. 1235). employee empowerment is the key to achieving organizational ecological goals (kitazawa et al., 2000). companies must empower workers, claim daily et al. (2001), if they want to see the sustained performance. in conclusion, businesses must strengthen employee capabilities and provide possibilities for independent decision-making concerning environmental challenges. 2.1.5 ethical climate. victor et al. (1988) defined an ethical atmosphere as the consensus regarding normal organizational behavior and practices that contain ethical meaning. the ethical atmosphere is confirmed as an unwritten set of guidelines for moral behavior in business contexts that employees must abide by mohd mustamil et al. (2020). management is crucial in creating and executing a corporate ethical atmosphere (deal et al., 1983). employees' working knowledge is more likely to be positively influenced by ethical standards and codes, which will then impact that person's ability to make moral decisions (hegarty et al., 1979). employees will act ethically when there is an ethical culture in the workplace. for instance, if leaders established an ethical workplace culture and implemented ethical regulations and procedures, their followers would act ethically. 2.2 hypotheses development 2.2.1 ethical leadership and sustainable performance sustainability is a moral concern, and moral leaders are crucial to achieving sustainable performance (iqbal, ahmad, & halim, 2020). according to iqbal, ahmad, nasim, et al. (2020), moral leaders follow environmental laws and principles, making it easier for their organizations to attain sustainable goals. leaders who uphold moral principles see it as their duty to promote and engage in proenvironmental activities (lee et al., 2017). therefore, followers gain a strong feeling of ecological morality through observational learning from ethical leaders, which motivates them to engage in vivid voluntary environmental action. these actions aid in both environmental preservation and obtaining sustainable performance for businesses. as a result, the study put out the following theory. h1. employee voluntary environmental behavior mediates the relationship between ethical leadership and sustainable performance. 2.2.2 green employee empowerment and sustainable performance dubois et al. (2013) state that one of the best methods to agbioforum, 24(2), 2022 | 208 shuya and zainal. — how to achieve better sustainable performance: the role of ethical leadership and green…. empower employees is to enhance their talents. employees that feel empowered are more likely to practice environmentally friendly habits at work. according to meta-analytic results published by seibert et al. (2011), psychological empowerment at the individual level significantly improves task performance. more employees will have more power, more pro-environmental actions will be taken, and better work will be rewarded. employees that are empowered and given authority are more likely to care about the environment, according to daily et al. (2001). according to daily et al. (2012)'s research, employee empowerment, and environmental performance indicators have a favorable link. as a result, empowered employees are more likely to engage in environmentally friendly actions. h2. employee voluntary environmental behavior mediates the relationship between green employee empowerment and sustainable performance. 2.2.3 the moderating role of ethical climate according to earlier studies, people are responsible for 80% of the world's total carbon emissions. promoting people's environmentally friendly behavior is vital for a firm to run sustainably. iqbal, ahmad, and halim (2020) assert that sustainability is regarded as an ethical problem. leaders and organizations are promoting more environmentally friendly practices, and as soon as employees recognize that the organization supports these behaviors, they are more ready to adopt them themselves. the organization will develop an ethical climate relating to the environment. the better sustainable performance will consequently be obtained. previous research found that ethical climate had a mediating or moderating effect on the relationships between ethical leadership and ethical conduct, organizational citizenship behavior, and employees' voluntary environmental activity (al halbusi et al., 2020; dey et al., 2022). a lack of research, however, obscures the part played by an ethical workplace in the connection between employees' voluntary environmental behavior and sustainable performance. this study aims to investigate the impact of the moral climate. h3. ethical climate moderates the influence of voluntary environmental behavior on sustainable performance. ethical leaders act as role models for moral behavior because they are both moral individuals and managers. the social exchange principles contend that employees will act as expected in response to their manager's empowerment, contrary to earlier theories (keller et al., 1995). it is conceivable that the same problem would manifest in an environmental setting. previous studies found psychological green climate, ethical climate (biswas et al., 2021; das et al., 2019), and pro-environmental climate (hicklenton et al., 2019) all had a significant impact on employees' behavior. an earlier study found that the ethical climate-mediated or moderated the relationship between ethical leadership and employee behavior (al halbusi et al., 2020). they neglected the ethical climate's moderating influence on the relationship between moral leadership, worker empowerment, and long-term success. thus, this study formulated the following hypotheses in light of the above mentioned. h4. ethical climate moderates the indirect effect of ethical leadership on sustainable performance through employee voluntary environmental behavior such that the indirect effect is stronger at a high level of ethical climate. h5. ethical climate moderates the indirect effect of green employee empowerment on sustainable performance through employee voluntary environmental behavior such that the indirect effect is stronger at a high level of ethical climate. in summary, fig. 1 describes the research model. figure 1. theoretical model 3. methods 3.1 sample and procedures our primary sample, which included mid-level managers from five chinese cities' financial, manufacturing, communication, and service sectors, was used to test our hypothesis. we used the translation-back-translation technique to convert the english surveys into chinese because the respondents were chinese (brislin, 1970). we kept back-translating until there was no discernible difference between the original english and the native tongue (m. j. kim et al., 2021). various industries and locations were chosen to circumvent contextual restrictions related to any particular organization or place. through a three-step web-based survey method, data were agbioforum, 24(2), 2022 | 209 shuya and zainal. — how to achieve better sustainable performance: the role of ethical leadership and green…. gathered. first, we got in touch with the hr managers of those companies and let them know what our research's goal was and what the questionnaires would cover. we reassured them that the poll was conducted for academic research reasons, was anonymous, did not contain any secret firm information, and would not be shared or leaked. at the same time, we agreed to give the business any comment on valid data discovered through an examination of the survey results. then, we explained the survey's objectives and methodology to hr managers, assuring them that no personal information would be revealed in the questionnaire. with the aid of hr managers, we sent a brief message to each responder, ensuring them that their participation was optional, that their privacy would be respected, and that the survey's primary goal was academic research. the mid-level managers were given the online questionnaire in the third step. the obtained data were sorted and examined once each respondent had finished the survey to create the final dataset. after the final dataset was evaluated, 27 surveys were determined to be invalid because they contained no or only partially consistent information. the last valid data were acquired by erasing these complex data. out of the 212 surveys that were distributed, 185 were complete and useable, translating to an overall response rate of 87.3%. 117 of the 185 employees were men. the respondents' average age was 40.37 years old (sd: 0.91), and they had worked for their organizations for an average of 8.35 years (sd: 0.72 years). table 1: demographic profile of respondents (n=185) characteristics classifications frequencies percentage gender male 117 63 female 68 37 age 30-35 years 9 5 36-40 years 58 31 41-45 years 80 44 46-50 years 30 16 more than 50 years 8 4 tenure experience 1-5 years 11 6 6-10 years 89 49 11-15 years 76 41 16-20 years 7 3 more than 20 years 2 1 education bachelor degrees 76 41 master's and higher degrees 53 29 others 56 30 3.2 measures in earlier research done in chinese or eastern contexts, the scales to measure five essential dimensions: ethical leadership, green employee empowerment, ethical climate, voluntary environmental behavior, and sustainable performance have shown desirable reliabilities and validities. a 5-point likert scale (1=strongly disagree to agree 5=strongly) was used to score each variable. 3.2.1 ethical leadership ten questions created by brown et al. (2005) brown and trevino were used to evaluate ethical leadership. such statements include "my reporting boss leads by ethical example" and "my reporting boss conducts his/her personal life ethically." for this scale, cronbach's alpha was 0.96. 3.2.2 green employee empowerment the 12-item scale created by spreitzer (1995) was used to gauge the level of green employee empowerment. the full scale was determined to have acceptable internal reliability according to cronbach's alpha ( = 0.94). the four aspects of employee empowerment—meaning, selfdetermination, competence, and impact—were looked at separately. examples of such statements include "i have a great deal of autonomy in how i carry out my work" and "the work i do is significant to me." 3.2.3 voluntary environmental behavior bissing‐olson et al. (2013) created a three-item scale for measuring voluntary environmental activity. "i take the chance to get actively involved in environmental protection at work" was one such item. for this scale, cronbach's alpha was 0.90. 3.2.4 ethical climate seven items were used to gauge the ethical climate and were first created by schwepker jr (2001). examples of such statements include "any unethical behavior not tolerated" and "organization has policies regarding ethical behavior." for this scale, cronbach's alpha was 0.91. 3.2.5 sustainable performance using a scale created by lee et al. (2017), sustainable performance was graded. the three components of the eight-item scale for sustainable performance are financial performance, environmental performance, and social performance. for the environmental performance, sample responses included "i am aware that my company has the initiative to reduce, reuse, and recycle," "i am aware that our company has a competitive advantage in cost saving and efficiency," and "i am aware that my company has the policy to strive to be a good corporate citizen." for this scale, cronbach's alpha was 0.94. 3.2.6 control variables gender, age, education, and tenure were developed as agbioforum, 24(2), 2022 | 210 shuya and zainal. — how to achieve better sustainable performance: the role of ethical leadership and green…. control variables to minimize the impact of unrelated variables on the study variables in this paper and to effectively ensure the explanatory validity of the empirical test results on the theoretical framework of this paper. table 2: descriptive statistics and correlations among study variables variables mean sd 1 2 3 4 5 6 7 8 9 gender 1.37 .48 1 age 2.84 .91 .71 1 te 2.46 .72 .75 .85** 1 education 1.89 .84 .85 .85** .79** 1 ec 3.99 .91 .07 -.02 .00 .02 (.91) el 3.91 .93 .04 .01 .01 .05 .69** (.96) gee 3.99 .74 -.05 -.03 -.03 -.05 .58** .76** (.94) veb 3.89 .93 -.01 -.04 .03 -.03 .62** .64** .67** (.90) sp 3.73 .95 -.06 -.15 -.13 -.14 .63** .72** .75** .71** (.94) note. n=185 respondents. gender was coded as 1=male, 2=female. te=tenure experience. organization tenure is in years. reliabilities of the study variables are listed in parentheses. ec=ethical climate; el=ethical leadership; gee= green employee empowerment; veb=voluntary environmental behavior; sp=sustainable performance. ** p<0.01 (two-tailed). 4. statistical analysis and results 4.1 confirmatory factor analyses confirmatory factor analyses were conducted to examine the validity of discriminant among ethical leadership, green employee empowerment, voluntary environmental behavior, moral climate, and sustainable performance. the 5-factor measurement model provided an excellent fit to the data (χ 2 [730] = 2509.45, p < .001; cfi = .85; srmr = .07; rmsea = .06). then, the hypothesized measurement model was compared to alternative models by collapsing measures with the most conceptual overlap. the model in this study had a superior fit to a 4-factor model that collapsed ethical leadership and green employee empowerment into one factor (χ 2 [730] = 3057.54, p < .001; cfi = .75; srmr = .07; rmsea = .09). 4.2 results the study used the process approach to examine the direct impact of moral leadership and employee empowerment on long-term sustainability. table 3 displays the outcomes of a bootstrap 5000 test. the direct correlation between ethical leadership and long-term success is estimated to be 0.45 (95% ci: 0.33, 0.57). similarly, the direct impact of employee empowerment on sustainability is estimated to be 0.63 (95% ci: 0.48, 0.78). once the mediating role of voluntary environmental behavior has been taken into account, the indirect impact of ethical leadership on sustainable performance is evaluated at 0.28 (95% ci: 0.20, 0.40), demonstrating that it is significant and validating hypothesis 1. the indirect effect of green employee empowerment on sustainable performance is estimated to be 0.33 (95% confidence interval: 0.21, 0.45), indicating that it is significant and confirming hypothesis 2. table 3: direct effects model pathways direct effect standard errors bc95%ci lower upper el to sp 0.45 0.06 (0.33, 0.57) gee to sp 0.63 0.08 (0.48, 0.78) notes: el=ethical leadership; gee=green employee empowerment; sp=sustainable performance; ci=confidence intervals table 4: indirect effects model pathways indirect effect boot se boot bc95%ci lower upper mediating effect of veb between el and sp 0.28 0.05 (0.20, 0.40) mediating effect of veb between gee and sp 0.33 0.06 (0.21, 0.45) notes: veb=voluntary environmental behavior; el=ethical leadership; gee=green employee empowerment; sp=sustainable performance; se=standard errors; ci=confidence intervals the moderating role of the ethical atmosphere in the link between voluntary environmental behavior and sustainable performance was also examined using the process technique. table 5 displays the outcomes of a bootstrap 5000 test. as shown in table 5, hypothesis 3 is supported by the fact that the moderating effect of the ethical atmosphere on voluntary environmental behavior and sustainable performance is 0.11 (95% ci: 0.20, 0.21). in addition, table 5 shows that the association between ethical leadership and sustainable performance through voluntary environmental behavior has a moderating effect of 0.47 (95% ci: -0.01, 0.11). as a result, hypothesis 4 was not verified. table 5 also supported hypothesis 5 by demonstrating that the association between green employee empowerment and sustainable performance through voluntary environmental behavior has a moderating effect of 0.76 (95% ci: 0.01, 0.15). conclusion: when the ethical climate was high, the indirect impact of green employee empowerment through sustainable performance through voluntary environmental behavior was more substantial, and when it was low, it was weaker. agbioforum, 24(2), 2022 | 211 shuya and zainal. — how to achieve better sustainable performance: the role of ethical leadership and green…. table 5: moderating effects of ethical climate notes: ec=ethical climate; veb=voluntary environmental behavior; el=ethical leadership; gee=green employee empowerment; sp=sustainable performance; se=standard errors; ci=confidence intervals 5. discussion we contend that ethical leadership and green employee empowerment foster employees' voluntary environmental behavior by communicating to employees that environmental sustainability is supported by organizations, which results in sustainable performance, in light of the social information processing theory (salancik et al., 1978). the findings showed that ethical climate moderates the relationship between ethical leadership, employee green empowerment, and sustainable performance through voluntary environmental behavior. voluntary environmental behavior mediates ethical leadership, employee green empowerment, and sustainable performance. 5.1 theoretical contributions the current study adds to the knowledge of organizations' sustainable performance. the findings show that for leaders to be regarded as ethical leaders, they must be dedicated to upholding environmental protection as a moral duty and as a means of setting an example for their workforce (zhang et al., 2021). therefore, in line with the social learning theory, the results clearly show that a company that considers the environment to be one of its responsibilities should have moral leaders who can foster an environment where employees can engage in environmental action and advance sustainability (shafique et al., 2020). more specifically, the environmental behaviors of leaders and employees can contribute to sustainable growth, and the social impact on company leaders encourages them to administer their operations ethically (ruiz-pérez et al., 2021). the study emphasizes the role of ethical leadership, employee empowerment, and voluntary environmental behavior impacted by the moral climate for sustainable development to achieve the long-term sustainable performance of the firms from the standpoint of stakeholder theory (pasricha et al., 2018). the results strengthen the position of ethical leaders in the leadership literature by demonstrating that they are crucial stakeholders in any company and that their behavior and influence have a significant impact on the sustainability of the firm's performance (khan et al., 2019; lee et al., 2017; pasricha et al., 2018). to improve sustainable performance, the findings suggested an integrated framework of ethical leadership, voluntary environmental behavior, and moral climate (eisenbeiss, 2012; graves et al., 2018). according to an earlier study, all the elements and sources of support for employee empowerment are present when the required green job performance is achieved. this study determined how employee empowerment affects their voluntarily engaged environmental behavior. since it was present in both routes for green performance, regardless of whether it is essential or not, this indicates that feeling empowered is necessary. the results provide new knowledge by demonstrating how employee empowerment makes it possible to use employee voluntary environmental behavior as a prerequisite for achieving sustainable performance on an individual level. 5.2 practical contributions the study's conclusions also have potential applications for managers who want to encourage employees' voluntary environmental behavior in workplace settings. it will demonstrate to managers the benefits of utilizing employee empowerment. management will be aware that one of the key factors encouraging employees to adopt green behavior is employee empowerment. another significant practical application is that leadership can design and create an atmosphere that supports employees, from top management to immediate supervisors. creating a green environment within the company could help to promote sustainable performance. employee green behavior, whether mandated or voluntary, is essential since environmental sustainability at the organizational level results from individual activities taken (manika et al., 2015). typically, management is persuaded of the benefits of utilizing employee empowerment. kitazawa et al. (2000) demonstrated how empowered personnel could improve environmental performance. additionally, according to zibarras et al. (2015), human resource professionals believe that employee empowerment is one of the best strategies for encouraging staff to act friendly to the environment. managers should note that empowering employees to make environmentally friendly decisions is another essential factor. 5.3 limitations and future research although this study produced some results, several limitations will still need to be addressed in follow-up research. on the one hand, although a sizable sample size was chosen for this study, the samples are concentrated in china's manufacturing sectors, allowing future research to further focus on other sectors and nations, such as the service industry, to investigate the factors promoting model pathways coeffect se bc95%ci lower upper moderating effect of ec between veb and sp 0.11 0.48 (0.20, 0.21) model pathways index se boot bc95%ci lower upper moderating effect of ec between el and sp through veb 0.47 0.30 (-0.01, 0.11) moderating effect of ec between gee and sp through veb 0.76 0.35 (0.01, 0.15) agbioforum, 24(2), 2022 | 212 shuya and zainal. — how to achieve better sustainable performance: the role of ethical leadership and green…. environmental behavior and performance. verification of the results across scales and cultures is necessary. on the other hand, the mid-level managers in the manufacturing industries were the study's sample. therefore, future research must include a cross-level study or a multi-group analysis. to increase the generalizability of results, later studies might use larger samples or investigate the relationships over time. 6. conclusion this study's primary goal was to investigate the connections between moral leadership, green employee empowerment, sustainable performance, and the mediating role that voluntary environmental behavior had in these relationships. according to our expectations, ethical leadership and green employee empowerment both favor sustainable performance, with voluntary environmental behavior as a mediating factor. a moral climate further amplifies the influence of voluntary environmental behavior on sustainable performance. the moral atmosphere moderates the indirect impact of ethical leadership on sustainable performance through voluntary environmental behavior. this study also looked at the indirect effect of empowerment on sustainable performance through voluntary environmental behavior constrained by moral context. despite its limits, this study's findings add to the knowledge of environmental sustainability performance, enrich management methods, and improve workers' environmental behaviors. references al halbusi, h., williams, k. a., ramayah, t., aldieri, l., & vinci, c. p. 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advanced publication, 1-26. ©2019 agbioforum. introduction the international agency for research on cancer (iarc) re-evaluated the potential carcinogenic risk to humans of several pesticides, including glyphosate in 2015 (iarc, 2015). iarc concluded that glyphosate belongs in a 2a category as probably carcinogenic to humans. while numerous regulatory authorities around the world (e.g., australian pesticides and veterinary medicine authority [apvma], 2017; canadian pest management regulatory agency [cpmra], 2017; european food safety authority, 2015; temple, 2016; us environmental protection agency [epa], 2016) have re-examined the safety evidence relating to glyphosate since 2015 and subsequently re-affirmed that glyphosate does not cause cancer, a number of governments are still considering establishing restrictions or limits on the use of glyphosate in agriculture. some of these countries are in asia (e.g., thailand and indonesia). to contribute to the debate about the possible implications of restrictions on glyphosate use, this article examined the current use of glyphosate, reasons for its use and how farmers might change weed control practices if they could no longer use glyphosate in seven countries of the region—australia, china, india, indonesia, philippines, thailand, and vietnam. these countries were selected for the study because they include the largest agricultural users of glyphosate in the region, countries considering possible restrictions the use of glyphosate and countries using genetically modified herbicide tolerant (to glyphosate) crops (source: kleffmann glyphosate usage data, 2010-2015). materials and methods the analysis was undertaken in two distinct phases and based on two different types of data source. firstly, detailed farm-level usage data for glyphosate and other herbicides, including aggregated (to crop and national level) data was identified. a search of the literature on herbicide use shows that national level herbicide usage survey data is limited; there are no published, detailed, annual herbicide usage surveys conducted by national authorities in any of the main agricultural economies in asia and therefore the author has drawn on herbicide usage data collected annually by private market research companies. this data is collected from a combination of in-country farm surveys of usage and professional (extension advisors, industry representatives) estimates based on herbicide sales and knowledge of farm weed control practices. it is typically compiled annually and made available to customers on a subscription basis. the author has been able to access this information via the subscriptions of the main sponsor of this research, monsanto company. as a source of data, it represents a consistent, annually updated, detailed source that allows for comparisons to be made between crops and between countries. given it is regularly accessed on subscription by leading agro-chemical companies, the author considers it reasonably representative of actual usage of herbicides by crop in each country. graham brookes pg economics ltd, uk this study examined the farm level implications of restrictions on glyphosate use. these are likely to be higher weed control costs, poorer levels of weed control, increased incidence of pests, lower yields and loss of benefits associated with no tillage and the adoption of gm ht crops. there is likely to be more use of alternative herbicides and additional use of manual, mechanical, and cultural weed control methods. these changes are expected to increase the annual cost of weed control across the seven countries by between $22/ha and $30/ha. in relation to the environmental impact associated with herbicide use, it is likely to result in a small decrease in the total amount of herbicide active ingredient used across the seven countries (-1% to 11%) although in terms of the associated environmental impact, as measured by the eiq indicator, the average eiq load/ha would increase by between 0.4% and 11.6%, highlighting a net poorer environmental outcome. key words: glyphosate, weed control, hand weeding, environmental impact quotient, active ingredient, costs, yield. glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 2 based on this dataset (sources: kleffmann and kynetec), total agricultural glyphosate use in active ingredient terms was identified for all asian countries for which data is collected. the largest ten users of glyphosate (in descending order of usage) are china, australia, thailand, india, philippines, indonesia, japan, vietnam, south korea, and malaysia (source: kleffmann). the leading six glyphosate user countries plus vietnam were selected for further analysis (vietnam rather than japan was selected for more detailed analysis because gm ht (tolerant to glyphosate) corn was in its second year of commercial usage at the time the research started (late 2016). for each of the seven countries, detailed analysis of herbicide use (by active ingredient) and by crop/agricultural usage was made and summaries of this analysis are presented in the results section below. through this, the main uses and crops where glyphosate is used were identified. this provided the baseline for the second phase of the research, to undertake in-country analysis of the implications if glyphosate use was no longer permitted. to better understand and quantify potential impacts of restrictions on glyphosate use, research, in the form of semi-structured interviews, was undertaken with representatives of organisations in each country who have good knowledge of production practices and weed control in the main crop/user sectors where glyphosate is currently used. across the seven countries 975 interviews were undertaken (australia 380, china 81, india 160, indonesia 72, philippines 62, thailand 161, and vietnam 59). these interviews were conducted with extension advisors, plantation owners/weed control advisors, industry advisors, and farmers. where farmers were interviewed in the countries where gm ht crops are grown (australia, philippines, and vietnam), these included farmers growing these crops. additional information about the questions asked is presented in appendix 3.1 the process for identifying and selecting the sample of interviewees was as follows: • crop focus was based on the glyphosate usage data (sources: kleffmann/gfk). • the main regions in which these highest glyphosate using crops were identified, with interview numbers based on the regional distribution of these crops. • where extension advisors were interviewed, these were identified from publicly available (internet) sources (e.g., of local/national extension services and universities) and/or knowledge of industry (crop/use) advisors;. • where farmers were interviewed, these were identified from a combination of publicly available (telephone) directories and knowledge of seed/ glyphosate sales from industry (sponsor) and extension services. • interviewees were selected for interview on a random basis from the above two ‘populations’ until each crop and region-specific target interview numbers had been fulfilled. an example is presented below for the philippines (table 1), with additional information for the other countries presented in appendix 1. assessment of the environmental impact associated with any change in weed control practices, if restrictions were placed on the use of glyphosate, requires comparisons of the respective weed control measures used on the ‘with glyphosate’ versus the ‘without glyphosate alternative’ form of production. the ‘with glyphosate’ baseline relating to herbicide use was identified from kleffmann/kynetec data for each of the main crops in which glyphosate is used, to the active ingredient level. the ‘without’ glyphosate alternatives were identified from the in-country interviews with extension advisors, industry experts and farmers. in addition, the environmental impact quotient (eiq; kovach, petzoldt, degni, & tette, 1992; updated annually) of each herbicide active ingredient used under the ‘with glyphosate’ and ‘without glyphosate’ were calculated and compared so as to provide an assessment of the impact on the environment according to both 1. the number of interviews undertaken in each country was small and not fully representative of all sectors of agriculture or necessarily representative of regional distribution of crops. this is a weakness of the research, which was caused by budget constraints. nevertheless, by identifying the main crops in which glyphosate is used in each country and estimated usage levels via kleffmann/kynetec data, it was possible to concentrate the interviews amongst experts and farmers in the main glyphosate using crop sectors. therefore, the author considers the findings of this second stage of the research to have produced findings that are reasonably consistent across countries and are consistent with findings of similar work in other countries (e.g., abeywickrama, sandika, sooriyarachchi, & vidanapathirana, 2017, relating to sri lanka; gouse, 2014, relating to south africa; fairclough, mal, & kersting, 2017, relating to germany; bouchet & cocard, 2013, relating to france; and wynn, cook, & clarke, 2014, relating to the uk). brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 3 changes in the amount of herbicide applied and their toxicity. as acknowledged in other literature (e.g., brookes, taheripour, & tyner, 2017), the eiq indicator is a better indicator of environmental impact than looking at changes in amount of active ingredient use alone. however, it is only a hazard indicator and has important weaknesses (e.g., kniss & coburn, 2015; peterson & schleier, 2014). it does not assess risk or probability of exposure to pesticides and relies on qualitative assumptions for the scaling and weighting of (quantitative) risk information that can result, for example, in a low risk rating for one factor (e.g., impact on farm workers) may cancel out a high-risk rating factor for another factor (e.g., impact on ecology). despite these weaknesses, the eiq indicator was used in this article because it summarizes significant amounts of information on herbicide impact into a single value that, with data on usage rates (amount of active ingredient used per hectare from kleffmann/ kynetec data) can be readily employed to make comparisons between the two production systems across crops, regions, and countries. it therefore provides an assessment (albeit fairly crude) of the environmental impact associated with a move from a ‘with glyphosate’ to a ‘without glyphosate’ production system that would not otherwise be available, if the criteria for assessing environmental impact required all of the eiqs weaknesses to be adequately addressed—such a full environmental impact assessment would require a complex evaluation of risk exposure to pesticides at a site-specific level and would require the collection of (site-specific) data (e.g., on ground water levels, soil structure) and/or the application of standard scenario models for exposure in a number of locations. such detailed information across a range of crops, regions and countries is simply not available. results context of glyphosate use in agriculture glyphosate is widely used in agriculture for weed control across a range of crops and is a key part of the production system that uses genetically modified herbicide tolerant (gm ht) crop technology. glyphosate is used for weed control in three main circumstances: • in land preparation before planting. this may be part of ground clearance (e.g., for plantation crops) or to clear weeds and old crop material before planting of seasonal and field crops (e.g., corn, rice); • between crop rows and surrounding field edges and bunds during crop growth. this occurs mostly in plantation crops, but also by some farmers growing field crops; • ‘over the top’ weed control in gm ht (tolerant to glyphosate) crops—notably cotton grown in australia, corn in the philippines and vietnam, and canola grown in australia. total annual global use of glyphosate is in the range of 450 to 500 million kilograms of active ingredient (source: kleffmann), of which gm ht crops account table 1. philippines: glyphosate user survey—sample selection. crop % of total glyphosate use (by weight of active ingredient) interview undertaken (% of total in brackets) notes corn 44 20 (32%) 7 of which used gm ht corn (gm ht corn accounts for about 30% of the total corn planted area in 2017) non-crop use 15 6 (10%) included information from 2 extension advisors rubber 7 5 (8%) plantation crop bananas 7 10 (16%) plantation crop tropical fruit 7 5 (8%) plantation crop rice 4 6 (10%) sugar cane 4 2 (4%) plantation crop others 12 8 (13%) notes: 1. target number of interviews 60 (limit based on budget available) 2. interviews were 60 with farmers and 2 with advisors. farmers in relation to crops of oil palm, rubber, sugar cane and tropical fruit includes plantation (in-house/employed) agronomists 3. others: included cassava, citrus fruit and coconut 4. tropical fruit (main crop mango) 5. interviews conducted july-september 2016 brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 4 for about two-thirds of this total global usage.2 the seven countries in asia—the focus of this article—use about 82 million kg of glyphosate active ingredient associated with agricultural uses per year (16%-18% of global use). husbandry practices to control weeds in agriculture are typically a combination of herbicide use, land/soil preparation, and mechanical or hand/manual weeding. the importance of herbicides for weed control varies by crop and country—table 2 shows the relative importance of herbicide and glyphosate use for weed control in the main crops where glyphosate is used in the seven countries. herbicides dominate weed control practices in all crops in australia, china, thailand, and vietnam but are less prominent in india, indonesia, and the philippines. in these latter countries, herbicide use tends to be more widely used in commercial crops and less used in subsistence crops (e.g., corn in the philippines, where herbicides are used on about 30% of the total crop and only about one-third of the crop is commercial). where herbicides are used for weed control, glyphosate is one of the most important and widely used active ingredient accounting for between 13% and 73% of total herbicide active ingredient use across the seven countries and between 7% and 38% of the total area sprayed with herbicides (figures 1 and 2). the main crops/uses for glyphosate show both some similarities and differences between countries (tables 2 and 3). a summary of the key features of glyphosate use by crop/country is presented below, with additional information by crop/country presented in appendix 2. australia. more than half (53%) of total glyphosate use (in terms of active ingredient use) is for non-crop-specific use and primarily in summer fallow. the next most table 2. proportion of main crops using herbicides (and glyphosate) as the main form of weed control by country (%). australia china india indonesia philippines thailand vietnam bananas n/r 100 (47) n/r n/r 25 (10) n/r n/r rice n/r 90 (4) 21 (4) 75 (37) 60 (3) 55 (1) 95 (3) corn 100 (90) 83 (5) 20 (2) 20 (7) 31 (28) 100 (3) 85 (7) other cereals 100 (45) n/r n/r n/r n/r n/r n/r rubber n/r n/r n/r 70 (37) 56 (54) 50 (34) 99 (85) sugarcane 90 (67) n/r 30 (3) 50 (13) 25 (5) 100 (10) 90 (21) oil palm n/r n/r n/r 67 (50) n/r 67 (49) n/r fruit n/r 90 (17-64) 100 (41) 25 (19) 10 (8) 75-100 (10-40) 50-64 (20-25) vegetables n/r 50 (9) 11 (5) n/r n/r n/r n/r coffee n/r n/r n/r n/r n/r n/r 63 (46) tea n/r 75 (26) 90 (72) n/r n/r n/r 75 (30) cotton 100 (100) 67 (11) 35 (30) n/r n/r n/r n/r canola/rapeseed 100 (30) 80 (13) n/r n/r n/r n/r n/r vines 90 (40) n/r n/r n/r n/r n/r n/r pasture 70 (12) n/r n/r n/r n/r n/r n/r sources: kleffmann and kynetec notes: • % of crop using glyphosate values in brackets • 2012 data for indonesia, philippines and thailand, 2014 data for australia, china and vietnam and 2015 data for india • n/r = not an important user of glyphosate • fruit: china relates to citrus, india is pome fruit, indonesia and philippines are tropical fruit based on mango, thailand is tropical fruit based on durian, mango and rambutan and vietnam is tropical fruit based on lychees and mango • corn in philippines and vietnam includes gm ht crops (28% and 5% respectively of the total crops in 2016) • canola and cotton in australia includes some gm ht crops (20% and 100% respectively of each crop in 2016) 2. this share of total glyphosate use accounted for by gm ht crops tolerant to glyphosate assumes all gm ht crops are tolerant to glyphosate and the farmers that use this technology use glyphosate for weed control. however, some gm ht crops include tolerance to other herbicides and/or are only tolerant to other herbicides (e.g., glufosinate). therefore, some farmers may use herbicides like glufosinate with their gm ht crops for weed control and the extent to which this occurs may overstate the actual share of total glyphosate use accounted for by gm ht crops. the author is not aware of any estimates of usage of herbicides other than glyphosate for ‘over the top’ spraying of gm ht crops. brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 5 important user crops in terms of total glyphosate active ingredient use are cereals (22%), forage crops (14%), cotton (5%), and canola (3%). in the latter two crops gm ht (tolerant to glyphosate) crop technology is used (used on all of the cotton crop and about 20% of the canola crop). overall, glyphosate accounts for about a third of total herbicide active ingredient used, in a country where herbicides are the primary form of weed control in agriculture. the literature reviewed (e.g., cameron & storrie, 2014) shows that glyphosate is important for weed control in the pre-planting and fallow phases. this is essentially a ‘burndown’ phase where weeds are cleared from land before seeds are sown or crops planted (typically one treatment of glyphosate is used). this also includes where some farms plow their land, clear vegetation/weeds and/or practice no or reduced forms of tillage agriculture.3 similarly, glyphosate has a long history of use in summer fallow table 3. average glyphosate use (kg/base ha active ingredient) by crop. australia china india indonesia philippines thailand vietnam bananas n/r 2.4 (2) 1.8 (2) 3.92 (2) 2.82 (2) n/r 2.88 (2) rice 0.41 2.27 0.55 0.11 0.71 0.43 0.95 corn 0.7 1.16 1.24 1.41 (1.2) 1.41 (1.5) 2.16 1.44 other cereals 0.63 1.23 1.0 n/r n/r n/r n/r rubber n/r 1.64 n/r 1.08 0.95 2.38 2.7 (2) sugarcane 1.38 (2) 1.79 1.19 0.17 1.92 (2) 4.8 (2) 2.88 (2) oil palm n/r n/r n/r 3.04 (2) 1.92 (2) 6.93 (3) n/r fruit 1.38 (2) 2.88 (2) 1.36 (2) 2.82 (2) 1.86 (2) 3.84 (2) 2.88 (2) vegetables 1.44 2.46 (2) 1.2 (2) 3.18 (2) 1.8 (2) 3.36 (2) 2.42 (2) coffee n/r n/r n/r 0.6 0.95 n/r 2.78 (2) tea n/r 3.84 (2) 1.8 3.28 (2) n/r n/r 2.7 (2) cotton 2.76 (3) 1.45 1.0 n/r n/r n/r 1.07 canola/rapeseed 0.67 1.12 n/r n/r n/r n/r n/r vines 0.71 1.99 1.14 n/r n/r n/r 2.88 (2) pasture 0.6 n/r n/r n/r n/r n/r n/r sources: derived from kleffmann and kynetec notes: • bracketed figures are average number of applications making up this total—assumed 1 unless stated • australia cotton: all gm ht (tolerant to glyphosate), canola average one treatment although gm ht 1.5 average • n/r = not relevant crop/do not use significant amounts of glyphosate • philippines corn mostly gm ht (tolerant to glyphosate) figure 2. annual glyphosate use by country (million kg active ingredient). sources: kleffmann and kynetec figure 1. glyphosate use as a percentage of total herbicide use by country. sources: kleffmann and kynetec brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 6 for the control of a broad range of weeds. in fruit, vegetable, sugarcane, and grape (wine production) crops, glyphosate is used for between crop weed control, with 3-4 treatments per year being common practice. china. glyphosate is used across a wide range of crops, with the largest use recorded in fruit, rice, tea, vegetables, and corn accounting for 34%, 12%, 9%, 9%, and 9%, respectively, of total glyphosate use. glyphosate accounts for 13% of total herbicide active ingredient used and relative to other countries in asia, china is the highest user of glyphosate (in terms of active ingredient per ha) when used in rice, cereals, tea, and canola. weed control in all crops commonly comprises a mix of mechanical weeding, hand weeding, and application of herbicides. in field crops, glyphosate is only used for land preparation before sowing of the crop (a single application), while in perennial crops and vegetables it is used for weed control in land preparation and between trees/bushes (2-3 applications per growing season). india. hand and mechanical weeding are the primary forms of weed control in all crops/uses. herbicides, though widely used, are commonly limited to a single application. glyphosate accounts for 37% of total herbicide active ingredient used and relative to other countries in asia, average usage of herbicides (active ingredient per ha) in india is lowest for bananas, fruit, vegetables, tea, and cotton. three-quarters of glyphosate use is accounted for by cereals, cotton, and fruit/vegetables (each accounting for about a quarter of total use). indonesia. herbicides are widely used on all crops for weed control, though usually supplemented by the use of mechanical and hand weeding (notably in tropical fruit and sugarcane where these are the only forms of weed control used on three-quarters of the fruit crop and half of the sugarcane crop). glyphosate accounts for 73% of total herbicide active ingredient used with the main user sector, accounting for nearly two-thirds of total glyphosate use, being oil palm (glyphosate is used both in land preparation and between crops during the growing season, with up to three applications per year). the next most significant user sectors are rice, corn, non-crop use, and rubber which accounted for 11%, 7%, 6%, and 4%, respectively, of total glyphosate use. usage in the field crops of corn and rice is more limited and typically a single application as part of land preparation, while in rubber and non-crop use, glyphosate is commonly applied 2-3 times per year (e.g., for weed control in-between plants in rubber). philippines. similar to indonesia, herbicides are widely used for weed control, though commonly as a secondary/supplementary form of weed control to mechanical and hand weeding. where herbicides are used, glyphosate accounts for 48% of total active ingredient used. the main glyphosate user crop is corn (44% of total use), mainly because a quarter of the crop (655,000 ha) uses gm ht (tolerance to glyphosate) technology. in this crop, glyphosate is typically applied twice during the growing season and is the primary form of weed control. in conventional corn (and rice), glyphosate is sometimes used in land preparation (one application). the next most important user sectors are non-crop (e.g., land clearance, forestry, and roadside), rubber, top fruit, and sugarcane which account for 15%, 7%, 7%, and 4%, respectively, of total glyphosate use. thailand. while all three forms of weed control (mechanical, manual, and herbicides) are commonly used in agriculture, herbicides are the primary form of weed control in most crops. glyphosate accounts for 33% of total herbicide active ingredient used by farmers, with the two main glyphosate user sectors being rubber and other plantation crops (e.g., bananas, tamarind). these two crop categories each account for about 35% of total herbicide use. as in the other countries where plantation crops are widely grown (e.g., philippines, vietnam, indonesia), glyphosate is used both in land preparation and for in-crop weed control, with 2-3 applications (of glyphosate) commonly made each year. the next most important glyphosate-user sectors are oil palm and cassava (11% and 4%, respectively, of total glyphosate use), where glyphosate is typically used in both land preparation and for in-crop weed control. vietnam. similar to indonesia and philippines, herbicides are widely used for weed control, though commonly as a secondary/supplementary form of weed control to mechanical and hand weeding. in relation to total herbicide use, glyphosate accounts for 36% of total active ingredient use. rubber is the largest glyphosate user sector, accounting for 57% of total usage. the next most important user crops are coffee, rice, and sugarcane (12%, 6%, and 5%, respectively, of total glyphosate use). in plantation crops, glyphosate is 3. it should be noted that more than three-quarters of grain farmers practice reduced or no tillage production methods (llewellyn & d’emden, 2010). brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 7 commonly applied 2-3 times per year for land preparation and in-between crop weed control. implications of restrictions on glyphosate use in agriculture a significant area where glyphosate is currently used for weed control is in the pre-planting phase. this is essentially a ‘burndown’ phase where weeds are cleared from land before seeds are sown and includes where some farms plow their land, clear vegetation/weeds and/or practice no or reduced forms of tillage agriculture.4 similarly, glyphosate has a long history of use in summer fallow for the control of a broad range of weeds in australia. if the use of glyphosate was prohibited in land preparation in all seven countries, the following are likely to occur in a number of crops: • land preparation for sowing/planting of crops is expected to be poorer—glyphosate is a key input for delivering good conditions for sowing/planting of seed in a weed-free environment; • land preparation costs are expected to increase because the main alternatives to glyphosate (herbicides and/or mechanical/hand weeding) are commonly more expensive; • poorer levels of weed control may occur because glyphosate is more effective at controlling a broader range of weeds than some of the ‘knock-down’ alternatives (e.g., paraquat where this is permitted for use); • the length of time for which effective weed control is maintained may decrease, requiring additional weed control activities (e.g., additional application of other herbicides such as paraquat or glufosinate, cultural practices, hand weeding, mechanical weeding, and additional burning, notably in indonesia and philippines); • yields may decrease as a result of poorer levels of weed control (e.g., higher levels of pests and diseases vectored by aphids and nematodes harbored in summer fallow weeds); • some of the benefits associated with reduced/no tillage systems may be lost. glyphosate is widely considered to be a key component to the successful adoption and maintenance of reduced/no tillage systems, which have enabled many farmers in the grain growing regions and where gm ht crop technology has been adopted to reduce their fuel and labor costs at seeding time, to improve soil conservation (less erosion), and to better manage soil moisture levels. for crops like tropical fruit, vines, sugarcane, rubber, palm oil, tea, and coffee during the immature and mature phases of production, the expected impacts of restrictions on glyphosate use are similar to the land preparation phase with increased cost of weed control, reduced effectiveness of weed control measures, lower yields, and more pest/disease problems. if glyphosate was no longer allowed to be used in these phases of production, the main alternatives are to switch to other methods of weed control. these are use of other herbicides or other forms of weed control. as glyphosate is a broad-spectrum herbicide that targets control of a wide range of both broad-leaved and grass weeds, the non-glyphosate herbicide alternative method of weed control can be either use of an alternative broad-spectrum herbicide such as paraquat or glufosinate or, supplementary use of more selective herbicides at the pre-emergence phase of crop development (e.g., of trifluralin, atrazine, quizalofop). the nonherbicide alternatives include hand weeding, mechanical weed control, cultural forms of control, and the use of plowing (if no/reduced tillage is currently practiced: table 4). switching to alternative herbicides was the most commonly stated action for survey respondents in australia, thailand, and vietnam. additional use of manual and mechanical weeding was also suggested by many respondents, especially in india, china, indonesia, and philippines. cultural practices such as trash blanketing in sugarcane,5 harvest weed seed control, and a reversion to plowing instead of reduced/no tillage systems may also occur in australia. the expected impacts of restrictions on glyphosate use in corn, canola, and cotton crops currently using gm ht technology are critical. gm ht cotton and canola were planted on all of the 270,000 hectare-cotton crop and 20% (445,000 ha) of the canola crop in australia. gm ht corn was grown on 5% (35,000 ha) and about 30% (650,000 ha) of the corn crops in vietnam and philippines. all of the benefits associated with the 4. no-till farming means that the ground is not plowed at all, while reduced tillage means that the ground is disturbed less than it would be with traditional tillage systems. 5. at harvesting, the leaves and tops of cane plants are left on the ground as a ‘trash blanket.’ this contributes to reducing soil erosion and soil water loss and provides weed control. brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 8 adoption of this technology would potentially be lost through: • higher costs of weed control (see below) as farmers lose out on the cost effective, less expensive and easier weed control that gm ht (tolerant to glyphosate) technology provides (e.g., brookes & barfoot, 2018). • loss of yield gains associated with better weed control. in australia, gm ht canola seed technology has provided greatest economic advantage relative to triazine-tolerant (tt) canola and where farmers have been/are faced with weeds that are resistant to a number of non-glyphosate herbicides (e.g., annual ryegrass [lolium rigidum] and wild radish [raphanus raphanistrum]; hudson & richards, 2014). recent national variety trials (nvt) data (2016) also suggests that current varieties containing the gm ht trait offer yield advantages over imidazolinone-tolerant (clearfield) varieties. in both philippines and vietnam, gm ht corn has also delivered improved yields from improved weed control relative to conventional corn (brookes & barfoot, 2018; gonzales, javier, ramirez, cariño, & baria, 2009). if current gm ht cotton, canola, and corn growers could no longer use glyphosate, many are likely to switch back to using conventional seed. this will result in use of a mix of other weed control measures including other herbicides (e.g., alternative knock-down herbicides like paraquat or glufosinate and additional use of herbicides such as atrazine, trifluralin, pendimethalin, metolachlor, diuron, flumeturon, imazamox, and imazapyr), cultural practices (e.g., hand weeding, whole field cultivation, inter-row cultivation) and crop rotation (including longer fallows and pasture phases). the adoption of these measures is expected to increase costs of weed control but reduce seed costs. any increase in cultural practices like cultivation may result in poorer levels of moisture preservation and have a negative effect on soil structure. the impact on farm income is, however expected to be negative because of likely yield losses. a switch to tt canola in australia is likely to result in a 7%-8% yield loss and a switch to clearfield canola, result in a 3-4% yield loss.6 in cotton, a negative impact on yield could also arise if there is increased use of residual herbicides, because of the pre-disposition of some cotton varieties to injury, especially in cool and wet conditions. in both philippines and vietnam, a switch back to conventional corn is likely to result in a yield loss of about 5% (brookes & barfoot, 2018). some may change to other gm ht technology where the tolerance is to other herbicides such as glufosinate (if available). this will depend on several factors, including the availability of this trait in leading varieties, possible ‘stacked’ availability with tolerance to other herbicides (e.g., dicamba), the cost of glufosinate, and the efficacy of glufosinate (and/or other herbicide tolerances) in controlling weeds on specific farms. some farmers might also switch out of corn, cotton, and table 4. main alternatives to using glyphosate. alternative herbicides general features relative to glyphosate other points of relevance broad-spectrum ‘knock down’ herbicides: paraquat, glufosinate less effective in controlling weeds which means needing to increase frequency of application. glufosinate also more expensive (typical twice the price of glyphosate) paraquat use banned in china and being phased out in thailand and vietnam over 3 years additional use of more selective herbicides pre-emergence: atrazine, acetochlor, trifluralin, 2 4 d, pendimethalin, quizalofop less effective in controlling weeds which means needing to increase frequency of application. 2 4 d use now banned and use being phased out over 3 years in vietnam non-herbicide weed control hand weeding more expensive and increased frequency of weeding required harsh and poorly paid work relative to alternative employment. requires access to pool of available labor mechanical weeding more expensive and increased frequency of weeding required requires capital for investment in equipment/machinery cultural methods more expensive and less effective assumes knowledge of how to use and requires capital for any equipment reversion to plowing (where no tillage currently practiced) more expensive and less effective requires capital for investment in equipment/machinery 6. based on the 2016 nvt data. brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 9 canola to other crops/enterprises. for example, in australia, cotton is currently the most profitable crop for many farmers in cotton growing regions and canola is an important and profitable break crop, grown in a rotation after cereals. this suggests that this alternative is likely to be taken up by few farms compared to the two alternatives referred to above. potential economic impacts these potential changes to weed control practices identified in the surveys conducted for this research also identified associated costs at the hectare and farm level. these costs were then aggregated to a crop and national level by applying the per-hectare cost changes to the estimated area of each crop where glyphosate is used (based on the kleffmann/kynetec herbicide usage data). table 5 provides a more detailed example of how the aggregate additional cost was estimated with reference to vietnam. overall, these changes are expected to have significant financial impacts in all seven of the countries. table 6 summarizes these impacts and points to an increase in the annual cost of direct weed control across the seven countries of between $1.36 billion and $1.88 billion, at an average increase in weed control costs of between $22/ha and $30/ha (on nearly 63 million hectares). the crops likely to experience the highest levels of additional weed control costs on a per hectare basis are plantation type crops like tea (india, china, vietnam), oil palm (indonesia), rubber (indonesia, thailand, vietnam), and tropical/citrus fruit (china, indonesia, india, philippines, thailand). in addition, relatively high additional weed control costs are expected where gm ht crop technology could no longer be used (cotton and canola in australia, corn in philippines and vietnam) and where farmers switch away from no/reduced tillage cropping (australia). the scope for farmers implementing these weed control practice changes, especially where manual labor is expected to replace the application of glyphosate, are dependent on sufficient levels of additional labor being available for hand weeding. for example, based on the survey findings in india, where a switch to additional use of manual weeding was the main alternative to using glyphosate, the extra volume of labor required is substantial at 113 million extra days of farm labor,7 equivalent to employing an additional 0.42 million full-time staff (equal to 6% of the level of unemployment in the agricultural workforce; source: 4th annual unemployment-employment survey 2013-14 and indian labor statistics 2014 by the labor bureau of the ministry of labor and employment). given that hand weeding is hard physical work and poorly paid relative to alternative occupations, many farmers find it difficult to obtain (and retain) labor for such work. a significant number of respondents to the surveys also indicated that if glyphosate use was restricted, they would expect crop yields to fall because of poorer levels of weed control. specifically, potential yield losses were cited most frequently in relation to plantation/perennial crops where between a half and two-thirds of survey respondents growing these crops expected yield losses to arise. in addition, all growers of gm ht crops in australia, philippines, and vietnam expect yield losses if they could no longer use this technology. table 5. example of aggregated additional direct weed-control cost impacts of restrictions on glyphosate use by crop: vietnam. crop baseline cost using glyphosate: $/ha likely cost if glyphosate use no longer permitted: $/ha difference: $/ha applicable area: ha aggregate additional cost: ‘000 $ rubber 50.91 109.38 58.47 353,100 20,646 coffee 79.03 191.66 112.63 136,570 15,382 rice 29.20 45.11 15.91 206,280 3,282 tropical fruit 51.95 70.77 18.82 42,000 790 tea 469.12 563.88 94.76 19,500 1,848 gm ht corn 51.36 89.95 38.59 55,000 2,122 conventional corn 87.95 89.95 2.00 75,530 151 notes: baseline costs and changes based on survey. applicable areas are base areas treated with glyphosate derived from kleffmann and kynetec and brookes and barfoot (2018) for gm ht corn. 7. calculated by dividing the extra labor costs per crop hectare identified in the survey by the national minimum labor wage for agricultural labor (about $2.56/day). brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 10 it is difficult to forecast the extent to which yield losses might occur, and none of the respondents offered any forecasts of potential impact. if restrictions on glyphosate use were introduced and as a result of poorer levels of weed control resulted in yield losses, table 7 provides an illustration of the impact of a 1% yield loss on the production and value of the main affected crops in each country. a 1% fall in yield on the area currently using glyphosate would result in a fall of production of about 2.76 million tonnes of crops (5% yield reduction would equal about 13.8 million tonnes). in value terms, a 1% loss in yield and production on the area that currently uses glyphosate to control weeds would result in a loss of production value equal to just over $1 billion (a 5% yield loss would be equal to a value loss of about $5.08 billion). potential environmental impacts from changes in herbicide use table 8 summarizes the use of glyphosate and herbicides in each of the seven countries (including the associated environmental impact, as measured by the eiq indicator) and the potential impact if glyphosate use was no longer allowed. the baseline use of glyphosate active ingredient across the seven countries, in the main crops where glyphosate is used, is about 82 million kg, equal to 29% of total herbicide usage (286 million kg) on these crop.8 average usage of all herbicides on these table 6. estimated direct weed-control cost impacts of restrictions on glyphosate use by country. country additional cost (‘000 $) average additional cost ($/ha) affected area (‘000 ha) australia 251,100-724,600 22-80 33,038 china 520,848 48 10,922 indonesia 164,370 97 1,680 india 289,886 23 12,860 philippines 35,180-79,084 33-74 1,075 thailand 54,224 26 2,115 vietnam 44,234 50 890 total 1,359,842-1,877,246 22-30 62,580 notes: • cost estimates of additional weed control costs based on surveys conducted in each country (columns 2 and 3). • affected area is estimated crop area treated with glyphosate—based on kleffmann and kynetec data and surveys (column 4). australia includes large areas of pasture and summer fallow land (about 23 million ha). • average additional cost: total is a weighted average table 7. impact of 1% yield loss on production and value arising from poorer weed control if glyphosate no longer allowed. country production loss: 1% yield loss (‘000 tonnes) production loss: main crops revenue/value loss: % yield loss (million $) value loss: main crops australia 450 canola, wheat, sugarcane 70.7 canola, wheat china 916 vegetables, citrus 613.8 vegetables, citrus indonesia 694 oil palm, tropical fruit 75.9 oil palm, tropical fruit india 335 fruit, sugarcane, vegetables 150.5 fruit, vegetables, tea philippines 118 corn 34.2 corn thailand 207 cassava, oil palm, rubber, sugarcane 46.3 oil palm, rubber, tropical fruit vietnam 41 corn, rubber, rice 25.5 coffee, corn, rubber total 1,016.9 source: derived from national statistics, fao, usda, kynetec and kleffmann notes: yield and producer price data 2015 annual averages from fao and usda data used as basis of calculating yield losses/ value per ha. aggregate volumes/values calculated relate to estimated area using glyphosate for each crop. applicable area—estimated base areas treated with glyphosate. 8. note that these values differ from those presented in figures 1 and 2 because this section examines the main crops where glyphosate used while earlier discussion related to total glyphosate and herbicide use in each country. brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 11 crops was 1.08 kg ai/ha, with an associated field eiq/ha value of 20.6/ha. if glyphosate use was no longer permitted, changes to herbicide use, and the associated environmental impact can be expected. the survey research identified there would be a significant shift in weed control practices based on use of alternative herbicides and/or additional use of hand and mechanical weeding. at the country level: • australia: depending on the choice of alternative weed control practices taken up, there could be a net reduction in total herbicide active ingredient use of 16%, or equally a net increase in usage of 31%. in terms of the associated environmental impact, as measured by the eiq indicator, this could lead to either a 5% reduction (environmental improvement) or a 45% increase (environmental deterioration) across the main crops/uses in which glyphosate is used. the lower end of this range represents a marginal improvement in the associated environmental impact of herbicide use compared to the current ‘with glyphosate’ position, while the higher end of the range represents a significant deterioration in the associated environmental impact of herbicide use compared to the ‘with glyphosate’ position. the lower end of this range assumes that glyphosate is replaced by paraquat as the main ‘knock-down’ herbicide used and no additional herbicides are used. the higher end of the usage range assumes that glyphosate is replaced by an alternative knock-down herbicide (assumed to be paraquat) plus additional herbicides (notably residual herbicides, applied preemergence). given glyphosate is more effective at controlling a wider range of weeds (and for controlling larger weeds) than paraquat, it is likely that most farmers would use additional herbicides with paraquat and therefore the upper part of the range of herbicide referred to above is the more likely indicator of potential environmental impact. overall, this suggests that if glyphosate use is no longer permitted in australia, a majority of farmers will switch to less environmentally-friendly weed control practices. many of the non-glyphosate-based weed control practices are also already part of existing weed resistance management strategies on many farms. therefore, any intensification in their usage may increase the risk of weeds developing resistance to these nonglyphosate herbicides; • china: if the area treated with glyphosate was replaced by a combination of alternative herbicides (mostly glufosinate) and other weed control practices (hand weeding), this would lead to a net reduction in total herbicide active ingredient use of about 3%. the average amount of herbicide active ingredient used for weed control (per ha) is likely to fall in most of the main crops where glyphosate is used but increase in corn. however, in terms of the associated environmental impact, as measured by the eiq indicator, this would increase marginally (+0.4%), reflecting a marginal deterioration in the associated environmental impact of herbicide use. these potential changes in herbicide use should, however, be treated with caution because many farmers proposing to switch to glufosinate, have little or no experitable 8. herbicide use on the main glyphosate using crops if glyphosate was no longer allowed (by country). country total glyphosate use (‘000 kg of active ingredient) total herbicide use (‘000 kg of active ingredient) average ai use (kg/ha) average field eiq value/ha total herbicide use if glyphosate use no longer allowed (‘000 kg ai) average ai use if glyphosate use no longer allowed (kg/ha) average field eiq value/ha if glyphosate no longer allowed australia 23,462 60,123 0.67 13.02 50,594-78,586 0.57-0.88 12.40-18.86 china 15,255 117,567 1.60 32.23 114,168 1.55 32.86 india 14,251 38,369 0.68 12.28 26,891 0.57 11.64 indonesia 9,071 12,381 0.78 14.50 11,606 0.73 19.55 philippines 1,906 4,144 0.82 15.78 2,488-3,292 0.53-0.55 14.06-16.14 thailand 15,276 45,758 2.99 52.29 41,392 2.69 53.86 vietnam 2,745 7,720 0.78 13.72 7,005-7,957 0.72-0.81 14.80-16.92 total of above 81,966 286,062 1.08 20.60 254,144-283,892 0.96-1.07 20.69-22.99 sources: derived from kleffmann, kynetec, and in-country surveys notes: columns 2-5 derived from kleffmann and kynetec data. columns 6-7 derived from survey and applied to estimated area of each crop/country using glyphosate. brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 12 ence of using this herbicide in weed control (glufosinate is less effective at controlling as broad a range of weeds and has poorer performance in cool conditions compared to glyphosate. its citation as the most likely alternative to glyphosate largely reflects the recent (2016) banning on the use of paraquat which was the main alternative broad-spectrum herbicide to glyphosate). higher usage levels, more frequent application and supplementation with other herbicides may therefore occur after initial experience of use; • india: the most commonly cited alternatives are hand/mechanical weeding (except in corn where all producers would use other herbicides, and in tea where half of producers would use alternative herbicides—a minority of cotton, rice, fruit, and cereal growers would also make more use of other herbicides). this would result in a 30% decrease in total herbicide active ingredient use, a fall in the base area using herbicides of 17% and a 21% decrease in aggregate eiq load associated with herbicide use. on a per hectare basis, the average amount of active ingredient usage would fall 16% because the average amount of active ingredient applied per typical application of the main alternative herbicide (paraquat) is lower than the average amount applied per hectare of glyphosate. in terms of the associated environmental impact, as measured by the eiq indicator, the average eiq value/ha across all crops would also fall but by less than the decrease in the amount of active ingredient applied—the average eiq load/ha would fall by 5% only because the alternative herbicides are less environmentally benign than glyphosate and would be applied more frequently; • indonesia: if glyphosate was replaced by the most commonly cited alternative herbicide, paraquat, this would result in a net reduction in active ingredient use of nearly 7%. however, in terms of the associated environmental impact, as measured by the eiq indicator, this would increase by 45%, reflecting a move to a less environmentally benign herbicide, applied more frequently. however, as some of the survey respondents indicated that hand weeding would replace glyphosate on about half of the area currently using glyphosate, a more likely outcome would be a 50% reduction in the total amount of herbicide active ingredient used and a 25% decrease in the associated environmental impact, as measured by the eiq indicator. additional (illegal) burning may also arise in some plantation crops; • philippines: if the area treated with glyphosate was replaced by alternative herbicides; paraquat in perennial crops and rice, and atrazine in corn and sugarcane, this would result in a net reduction in total herbicide active ingredient use of just over 20%. however, in terms of the associated environmental impact, as measured by the eiq indicator, this would increase by just over 2%, reflecting a move to less environmentally benign herbicides. if the area treated with glyphosate was partly treated with other herbicides but mostly reverted to additional hand weeding, the total base area of the main crops using herbicides for weed control is expected to fall by 18%. not surprisingly, this would lead to a significant net reduction in total herbicide active ingredient use of 40% and an 11% fall in the associated environmental impact, as measured by the eiq indicator; • thailand: replacing glyphosate with the most commonly cited alternative herbicide, paraquat (except in tropical fruit where 75% of producers would probably revert to hand/mechanical weeding), would lead to a net decrease in total herbicide active ingredient use of 10%. however, in terms of the associated environmental impact, as measured by the eiq indicator, this would increase by 3% because paraquat is a less environmentally benign herbicide than glyphosate and would be applied more frequently than glyphosate (especially in rubber and oil palm); • vietnam: if the area treated with glyphosate was replaced by the most commonly cited alternative herbicides, paraquat in perennial crops and rice, and by atrazine in corn, this would result a net increase in total herbicide active ingredient use of just over 3% because of the need to spray crops more frequently with (less effective) herbicides. in terms of the associated environmental impact, as measured by the eiq indicator, this would increase by 23%, reflecting a move to less environmentally benign herbicides than glyphosate. if the area treated with glyphosate was partly treated with other herbicides and partly reverted to additional hand and mechanical weeding (as indicated by some survey respondents), the total base area of the main crops using herbicides for weed control would be expected to fall marginally (by 2%). this would lead to a net brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 13 reduction in herbicide use of 9%. the associated environmental impact, as measured by the eiq indicator, would increase by 8% because of the additional use of less environmentally benign herbicides. across the seven countries, table 8 suggests that a ban on the use of glyphosate would result in a reduction in the total amount of herbicide active ingredient used (-1% to -11%). in terms of the associated environmental impact, as measured by the eiq indicator, there would however be a poorer environmental outcome, with the average eiq/load per ha increasing by between a small 0.4% and a more significant 11.6%. it should be noted that where survey respondents in each country indicated they would switch to weeding by hand, sufficient labor would have to be found and hired to undertake this work. as indicated above, the additional labor requirement may be substantial (e.g., in india) and would likely prove difficult to secure. this means that the inferred environmental changes associated with significant reductions in herbicide use discussed above may not arise especially if farmers end up examining alternative herbicide-based solutions not yet considered. a second potential environmental impact relates to possible loss of some of the benefits of no/reduced tillage agriculture. these include reduced levels of soil erosion, higher levels of soil water content, and reduced levels of greenhouse gas emissions (e.g., conservation technology information center, 2002; fabrizzi, morón, & garcía, 2003). if farmers currently practicing no/ reduced tillage production systems are no longer able to use glyphosate for weed control and cannot use the ‘next best’ (but nevertheless less effective) alternatives (atrazine, paraquat), many may find that is difficult to maintain no/reduced tillage systems and revert to a plow-based system. conclusions glyphosate is widely used around the world for weed control in conventional agriculture and is a key part of the production system that uses gm ht crop technology. total global annual use of glyphosate is in the range of 450 to 500 million kilograms of active ingredient, of which the seven countries in asia examined in this study use about 16%-18% of the global total. glyphosate is widely used in land preparation before the planting of a crop, in both seasonal and plantation-type crops. it is an important component for in-crop and inbetween crop weed control in conventional crops and is a key part of weed control in gm ht (tolerant to glyphosate) crops grown in three of the asian countries examined (corn in philippines and vietnam, canola and cotton in australia), even though these three countries account for only 1% of gm ht crops grown globally. if restrictions on the use of glyphosate, in the form of a ban on agricultural use were introduced in the seven countries, the expected impacts are likely to be significant. the main impacts are likely to be higher weed control costs, poorer levels of weed control, reduced time of effective levels of weed control, increased incidence of pests, lower yields, poorer access to fields, loss of the benefits associated with no and reduced tillage and loss of benefits associated with the adoption of gm ht crops (benefits of lower costs of production and higher yields: see brookes et al., 2017, and brookes & barfoot, 2018). the ease or otherwise of replacing glyphosate with alternatives will be strongly dependent on local factors such as the share of crop production in which glyphosate is used for weed control, the crop and fieldspecific impact on levels of weed control, availability and cost of mechanical alternatives, and labor. these will be highest on farms using gm ht technology and amongst conventional growers of fruit, vegetables, and plantation crops, where glyphosate is widely used for weed control between crops. there is likely to be more use of alternative herbicides and additional use of manual, mechanical, and cultural weed control methods. these changes are expected to increase the annual cost of weed control across the seven countries by between $1.36 billion and $1.88 billion, at an average increase in weed control costs of between $22/ha and $30/ha. this represents a sizable increase in costs of production and a loss of competitiveness, which would be exacerbated where lower yields arise and where one of the main alternative herbicides cited for use (paraquat) is being withdrawn from use (e.g., in vietnam). in relation to the environmental impact associated with herbicide use, while the changes in weed control practices are likely to result in a small decrease in the total amount of herbicide active ingredient used across the seven countries (-1% to -11%), in terms of the associated environmental impact, as measured by the eiq indicator, the average eiq load/ha would increase by between 0.4% and 11.6%, highlighting a poorer environmental outcome. this is because the alternative herbicides likely to be used are less environmentally benign than glyphosate and would be applied more frequently. a loss of some of the benefits of no/ reduced tillage agriculture practiced by some farmers may also occur. these ‘lost’ benefits include reduced brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 14 levels of soil erosion, higher levels of soil water content and reduced levels of greenhouse gas emissions. additional (illegal) burning may arise in plantation crops. lastly, where farmers indicated they would make more use of hand weeding, this would require employment of significant volumes of additional labor. this may well prove difficult to implement, given the harsh nature of such work and low levels of pay compared to alternative occupations. the inferred reductions in herbicide use referred to above may therefore not arise, if farmers are forced to re-examine alternative herbicide-based solutions not yet considered. a lack of labor to undertake additional hand weeding would also make significant yield and production value losses more likely to occur. references abeywickrama, l., sandika, a., sooriyarachchi, p., & vidanapathirana, i. (2017). impacts of banning glyphosate on agriculture sector in sri lanka: a field evaluation (report created by croplife international). university of ruhuna, faculty of agriculture. available on the world wide web: http: www.croplifeasia.org/wp-content/uploads/2018/04/impactsof-banning-glyphosate-on-agriculture-sector-in-sri-lankaa-field-evaluation.pdf. australian pesticides and veterinary medicine authority (apvma). (2017, march). final regulator position: consideration of the evidence for a final reconsideration of glyphosate. kingston, australia: author. available on the world wide web: https://apvma.gov.au/node/26561. bouchet, l., & cocard, h. (2013). etude socio-economique de i’utilisation du glyphosate a l’echelle des exploitations agricoles en france. paper presented at the 22nd conférence du columa. journées internationales sur la lutte contre les mauvaises herbes, dijon, france, december 10-12. brookes, g., & barfoot, p. (2018). farm income and production impacts of using gm crop technology 1996-2016. gm crops & food, 9, 59-89. brookes, g., taheripour, f., & tyner, w.e. (2017). the contribution of glyphosate to agriculture and potential impact of restrictions on use at the global level. gm crops & food, 8, 216-228. cameron, j., & storrie, a. (2014, april). summer fallow weed management: a reference manual for grain growers and advisers in the southern and western grains region of australia. kingston, australia: grains research and development corporation. canadian pest management regulatory agency (cpmra). (2017, april). re-evaluation decision rvd2017-01, glyphosate (h113-28/2017-1e-pdf). ottawa, ontario: government of canada, pest management regulatory agency. available on the world wide web: https://www.canada.ca/en/ health-canada/services/consumer-product-safety/reports-publications/pesticides-pest-management/decisions-updates/registration-decision/2017/glyphosate-rvd-2017-01.html. conservation technology information center (ctic). (2002). economic benefits with environmental protection: no-till and conservation buffers in the midwest. west lafayette, in: purdue university, conservation technology information center. european food safety authority. (2015). conclusion on the peer review of the pesticide risk assessment of the active substance glyphosate. efsa journal, 13, 4302. fabrizzi, k.p., morón, a., & garcía, f.o. (2003). soil carbon and nitrogen organic fractions in degraded vs. non-degraded mollisols in argentina. soil science society of america journal, 67, 1831-1841. fairclough, b., mal, p., & kersting, s. (2017, july). the economic relevance of glyphosate in germany. lüdinghausen, germany: kleffmann group. gonzales, l., javier, e., ramirez, d., cariño, f., & baria, a. (2009). modern biotechnology and agriculture: a history of the commercialisation of biotechnology maize in the philippines. los baños, philippines: strive foundation. gouse, m. (2014, november). assessing the value of glyphosate in the south african agricultural sector. pretoria, south africa: university of pretoria, department of agricultural economics, extension, and rural development. available on the world wide web: http://ageconsearch.umn.edu/record/ 206520/files/2014.pdf. hudson, d., & richards, r. (2014). evaluation of the agronomic, environmental, economic, and coexistence impacts following the introduction of gm canola to australia (2008-2010). agbioforum, 17(1), 1-12. available on the world wide web: http://www.agbioforum.org. international agency for research on cancer (iarc). (2015). some organophosphate insecticides and herbicides. iarc monographs on the evaluation of carcinogenic risks to humans, volume 112. geneva: world health organization press. available on the world wide web: https://monographs.iarc.fr/eng/monographs/vol112/mono112.pdf. kniss, a.r., & coburn, c.w. (2015). quantitative evaluation of the environmental impact quotient (eiq) for comparing herbicides. plos one, 10, e0131200. kovach, j., petzoldt, c., degni, j., & tette, j. (1992). a method to measure the environmental impact of pesticides. new york's food and life sciences bulletin, 139, 1-8. available on the world wide web: https://ecommons.cornell.edu/handle/1813/ 55750. llewellyn, r.s., & d’emden, f.h. (2010). successful adoption down under. in c.w. lindwall & b. sonntag (eds.), landscapes transformed: the quiet triumph of conservation tillage and direct seeding. saskatoon, saskatchewan, canada: knowledge impact in society. peterson, r.k.d., & schleier iii, j.j. (2014). a probabilistic analysis reveals fundamental limitations with the environmental brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 15 impact quotient and similar systems for rating pesticide risks. peerj, 2, e364. temple, w. (2016, august). review of the evidence relating to glyphosate and carcinogenicity. wellington: environmental protection authority of new zealand. available on the world wide web: https://www.epa.govt.nz/assets/uploads/documents/everyday-environment/publications/epa-glyphosatereview.pdf. us environmental protection agency (epa). (2016). glyphosate issue paper: evaluation of carcinogenic potential. washington, dc: us epa, office of pesticide programs. available on the world wide web: https://www.regulations.gov/document?d=epa-hq-opp-2016-0385-0094. wynn, s.c., cook, s.k., & clarke, j.h. (2014). glyphosate use on combinable crops in europe: implications for agriculture and the environment. outlooks on pest management, 25, 327-331. acknowledgement this work was supported by funding from monsanto singapore. statistical sources kleffmann and kynetec are subscription-based data sources (derived from farmer surveys and expert—industry and extension—assessment of herbicide sales data and knowledge of farm-level weed-control practices) on pesticide use. the annual unemployment-employment survey 2013-14 and indian labor statistics 2014 by the labor bureau of the ministry of labor and employment (government of india) was also used. appendix 1: survey sample selection table a1. india: glyphosate user survey—sample selection. crop % of total glyphosate use (by weight of active ingredient) interview undertaken (% of total in brackets) notes cereals 28 46 (29%) corn and wheat cotton 26 15 (9%) fruit 22 36 (22%) citrus, pomegranate, grapes vegetables 12 17 (11%) ginger, chilli, brinjal, tomato rice 6 26 (16%) sugarcane 1 10 (6%) plantation others 5 10 (6%) tea (plantation) notes: target number of interviews 160-170 (limit based on budget available). interviews were 139 with farmers and 21 with advisors and pesticide dealers/wholesalers. farmers in relation to crops of sugarcane and tea includes plantation (in-house/employed) agronomists. others: included non-agricultural uses (e.g., roadside verges). interviews conducted june-august 2017. table a2. vietnam: glyphosate user survey—sample selection. crop % of total glyphosate use (by weight of active ingredient) interview undertaken (% of total in brackets) notes rubber 57 13 (22%) plantation corn 3 16 (27%) including 5 using gm ht corn which accounts for 3% of total crop tropical fruit 4 9 (15%) jackfruit, durian, longan coffee 12 8 (14%) plantation rice 9 3 (5%) others 15 10 (17%) avocado, sugarcane and non-agricultural uses notes: target number of interviews 50-60 (limit based on budget available). interviews were with 54 with farmers (private and collectives) and 5 with advisors. farmers in relation to crops of rubber and coffee includes plantation (in-house/employed) agronomists. interviews conducted september-november 2016. brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 16 table a3. thailand: glyphosate user survey—sample selection. crop % of total glyphosate use (by weight of active ingredient) interview undertaken (% of total in brackets) notes rubber 35 23 (14%) plantation additional (plantation) crops 34 25 (15%) tamarind, durian, jackfruit oil palm 11 11 (7%) plantation cassava 4 16 (10%) mango 4 20 (12%) plantation sugarcane 2 22 (14%) plantation rice 2 8 (5%) others 7 36 (22%) other fruit and vegetables notes: target number of interviews 160-170 (limit based on budget available). interviews were 155 with farmers and 6 with advisors. farmers in relation to crops of rubber, oil palm and sugarcane includes plantation (in-house/employed) agronomists. interviews conducted april-june 2017. table a4. indonesia: glyphosate user survey—sample selection. crop % of total glyphosate use (by weight of active ingredient) interview undertaken (% of total in brackets) notes oil palm 63 19 (26%) rice 11 12 (17%) corn 7 12 (17%) non-crop use 6 7 (10%) forestry clearance tropical fruit 3 7 (10%) rubber 4 10 (14%) other crops 6 5 (7%) sugarcane, coffee, bananas notes: target number of interviews 75 (limit based on budget available). interviews were with 67 farmers (private and collectives) and 5 with advisors/distributors. farmers in relation to crops of oil palm, rubber, sugarcane and tropical fruit includes plantation (inhouse/employed) agronomists. interviews conducted july-october 2016. table a5. china: glyphosate user survey—sample selection. crop % of total glyphosate use (by weight of active ingredient) interview undertaken (% of total in brackets) notes citrus fruit 20 15 (18%) mandarins, pears, apples rice 12 15 (18%) tea 9 8 (10%) vegetables 9 9 (11%) garlic, brassicas corn 9 9 (11%) other fruit 14 5 (6%) banana cotton 5 9 (11%) other crops and uses 22 14 (14%) canola, peanuts, forestry notes: target number of interviews 90 (limit based on budget available). interviews were 76 with farmers (private and collectives) and 5 with advisors. farmers in relation to crops of tea and bananas includes plantation (in-house/employed) agronomists. interviews conducted february to april 2017. brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 17 table a6. australia: glyphosate user survey. crop % of total glyphosate use (by weight of active ingredient) interviews undertaken notes non-crop use/fallow 53 see notes mostly for weed control in fallow—data from canola survey and grdc weed management guide cereals 22 2 advisors plus see notes as above forage crops 14 as above cotton 5 179 crop entirely gm ht (tolerant to glyphosate) canola 3 152 20% of crop is gm ht (tolerant to glyphosate). almost all of the rest of crop is ht using conventional technology (e.g., triazine tolerance) others 3 49 agronomists and growers of sugarcane, temperate fruit, tomatoes, capsicum, brassicas, celery, zucchini, melons, and grapes notes: basis of research different to other countries. combination of existing literature (weed management guides), crop-specific (cotton and canola) weed/resistance management surveys of growers plus some interviews (with questionnaire used in other countries). interviews conducted august-december 2016. table a7. china. crop average cost of herbicides $/ha average cost of glyphosate where used $/ha notes bananas 95 32 weed control based on combination of mechanical, hand weeding and herbicides. glyphosate, where used, in land preparation and in-between crop weed control citrus fruit 61 22 as bananas rice 27 38 weed control based on combination of mechanical, hand weeding and herbicides. glyphosate, little used and only in land preparation tea 36 30 as bananas vegetables 20 18 as bananas corn 32 18 as rice cotton 46 22 as rice canola 17 19 as corn notes: average cost of herbicides and glyphosate are per base area, excluding application cost (sources: kleffmann/kynetec). glyphosate use in land preparation typically a single application and where used in between crops during growing season typically 2-3 applications. appendix 2: baseline cost of herbicides and cost of glyphosate brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 18 table a8. australia. crop average cost of herbicides $/ha average cost of glyphosate where used $/ha notes fallow 8 7 weed control based on combination of mechanical/no-tillage and herbicides. glyphosate typically used once for general weed control pasture 9 8 weed control based on combination of mechanical and herbicides. glyphosate typically used once for land preparation before sowing vines 127 16 weed control based on combination of mechanical, cultural and herbicides. glyphosate, used in land preparation and between crop (in season) weed control (once/twice per season) cereals 20-24 7-10 as pasture tropical fruit 72 8 weed control based on combination of mechanical and herbicides. glyphosate, used in land preparation and between crop (in season) weed control (once/twice preseason) sugarcane 64 8 as tropical fruit canola 27 10 glyphosate used for land preparation in conventional ht crops and for land preparation and over the top spraying in gm ht crop (2 applications in gm ht in total) cotton 101 27 glyphosate used for land preparation and over the top spraying in gm ht crop (3-4 applications in total) note: average cost of herbicides and glyphosate are per base area, excluding application cost (sources kleffmann/kynetec). table a9. indonesia. crop average cost of herbicides (excluding application cost) $/ha average cost of weed control $/ha notes oil palm 27 18 weed control based on combination of mechanical, hand weeding and herbicides. glyphosate widely used, in land preparation and inbetween crop weed control (2-3 applications) rice 7 2 weed control based on combination of mechanical, hand weeding and herbicides. glyphosate, little used and only in land preparation corn 39 16 weed control based on combination of mechanical, hand weeding and herbicides. glyphosate used mostly in land preparation land reclamation 23 18 mainly manual weeding and herbicides used. glyphosate is the most commonly used herbicide, typically twice rubber 23 12 as oil palm, except 1-2 in-crop treatments sugarcane 19 4 as corn—mostly used in land preparation tropical fruit 21 16 as corn but also some use in-crop note: average cost of herbicides and glyphosate are per base area, excluding application cost (sources: kleffmann/kynetec). brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 19 table a10. india. crop average cost of herbicides (excluding application cost) $/ha average cost of weed control $/ha notes cereals 9 10 weed control based on mostly mechanical and hand weeding plus some (limited) use of herbicides. glyphosate, where used, is only in land preparation rice 10 6 as cereals corn 7 13 as cereals tea 24 20 weed control based on mostly mechanical and hand weeding plus use of herbicides. glyphosate widely used in land preparation and between crops (2-3 applications) cotton 11 10 as cereals sugarcane 10 12 as cereals fruit 9 14 as cereals vegetables 11 12 as fruit but some additional use of glyphosate in between crops in growing season note: average cost of herbicides and glyphosate are per base area, excluding application cost (sources: kleffmann/kynetec). table a11. philippines. crop average cost of herbicides (excluding application cost) $/ha average cost of weed control $/ha notes bananas 38 37 weed control based on mostly mechanical and hand weeding plus use of herbicides. glyphosate widely used in land preparation and between crops (2-3 applications) corn 33 22 glyphosate used for land preparation (lp) only in conventional corn. used for lp and over the top treatment in gm ht crop non-crop use 37 39 glyphosate dominates weed control in non-crop use with up to 4 applications per year rice 21 18 weed control based on mostly mechanical and hand weeding plus use of herbicides. glyphosate widely used in land preparation rubber 41 34 as bananas sugarcane 52 35 as bananas tropical fruit 58 41 as bananas note: average cost of herbicides and glyphosate are per base area, excluding application cost (sources: kleffmann/kynetec). brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 20 table a12. thailand. crop average cost of herbicides (excluding application cost) $/ha average cost of weed control $/ha notes cassava 22 15 weed control based on mostly mechanical and hand weeding plus use of herbicides. glyphosate widely used in land preparation and between crops (2 applications) corn 25 14 herbicides are main form of weed control, with some use of hand weeding. glyphosate, where used, is mostly for land preparation mango 27 30 as cassava, except glyphosate commonly used 3 times per growing season rambutan 37 44 as cassava, except glyphosate commonly used 3 times per growing season rubber 36 38 as cassava, with glyphosate most used herbicide—3-4 times per growing season oil palm 39 37 as rubber rice 28 9 weed control based on mostly mechanical and hand weeding plus use of herbicides. glyphosate only used in land preparation sugarcane 72 17 as rice, though glyphosate sometimes used in-crop (2 applications in total) citrus 93 60 as mango and rambutan note: average cost of herbicides and glyphosate are per base area, excluding application cost (sources: kleffmann/kynetec). table a13. vietnam. crop average cost of herbicides (excluding application cost) $/ha average cost of weed control $/ha notes coffee 17 15 weed control based on mostly mechanical and hand weeding plus use of herbicides. glyphosate widely used in land preparation and between crops (2 applications) corn 15 14 mix of hand/mechanical weeding and use of herbicides. glyphosate, where used in conventional corn is for land preparation. in gm ht corn, used ‘over the top’ (1-2 applications) rice 30 10 mix of hand/mechanical weeding and use of herbicides. glyphosate, where used in conventional corn is for land preparation rubber 33 29 as coffee sugarcane 18 28 hand weeding and use of herbicides are main form of weed control. glyphosate mostly used (1 application) in land preparation tea 33 27 as coffee tropical fruit 52 22 as coffee notes: average cost of herbicides and glyphosate are per base area, excluding application cost (sources: kleffmann/kynetec and survey). brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 21 appendix 3: questionnaire glyphosate use research project: benefit of glyphosate in agricultural crops/uses answers to the questions below are vital to this research. please complete with as much detail and consideration as possible. all responses will be treated confidentially and no individual responses will be used in the final document. the data/answers provided will be used only to compile a crop-specific and aggregated assessment of possible impacts. questions are laid out below in relation to three possible phases when glyphosate might be used: in land preparation before planting, in the immature crop phase (mostly relating to plantation/fruit crops) and the mature crop phase. 1 name: _________________________________ 2 crop/use being discussed:_______________________________ 3 type of organization:_____________________________ (e.g., farm, plantation, farm adviser) 4 for your most used glyphosate product, how many grams per litre or kg of active ingredient are used? select only one. 5 what agronomic operation(s) do you use glyphosate on? you may select more than one option. no/minimum tillage land preparation in crop weed control others, please specify __________________________________ glyphosate use for land preparation/pre-planting in field crops, sugarcane, oil seeds, cereals, cotton, non crop use 6 if you use glyphosate in land preparation what are the main types of weed you want to control? (select only the common and major weeds) grasses, please give common names_________________________________________ broadleaf, please give common names_______________________________________ sedges, please give common names_________________________________________ fern, please give common names__________________________________________ others, please specify_______________________________________________ 7 how many litres of glyphosate do you apply per hectare to control weeds? (if this varies by type of weed please give more than one answer) _______________________________ glyphosate in land preparation (lt/ha as product rate) 8 do you mix glyphosate with other herbicides? no, use only glyphosate yes, mix with other herbicide(s) 9 if yes to mixing with other herbicides, what kind of mix do you use? pre-mix if you buy the herbicide with glyphosate as a ready-mixed product tank-mix if you use glyphosate and add the other herbicide in your spray tank before application 10 what is/are the active ingredient(s) of the additional herbicide you mix? (name of product/herbicide) _____________ 11 what is the approximate cost of your glyphosate herbicide application per hectare?___________________ 13 what impact(s) do you think there will be if you could no longer use glyphosate. several answers are allowed 1 land preparation will not be optimal 5 land preparation cost will increase 2 yield will decrease 6 weeds will compete more 3 increased problem of pests and diseases 7 access to fields will be more difficult 4 poorer weed control 8 the effective weed control cycle will be shorter other, please describe: _______________________________________________ brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 22 14 if you can no longer use glyphosate, what other weed control method will you use? please describe. _________________________________________________________________________________________________ 15 what is the cost of the alternative methods of land preparation? other method/herbicide/ hand weeding cost (local currency/ha) cost of other herbicides (e.g., cost of herbicide) cost of labourer/application per ha total cost glyphosate use in perennial crops this section applies mostly to orchards, plantation (e.g., rubber), fruit crops 17 if you use glyphosate on perennial crops what are the main weeds you aim to control? (select only the common and major weeds) grasses, please give common names_________________________________________ broadleaf, please give common names_______________________________________ sedges, please give common names_________________________________________ fern, please give common names__________________________________________ others, please specify_______________________________________________ 18 how many litres of glyphosate do you apply per hectare to control weeds? (if this varies by type of weed, please give more than one answer) _______________________________________________ 19 do you mix glyphosate with other herbicides? no, use only glyphosate yes, mix with other herbicide(s) 20 if yes, what kind of mix do you use? pre-mix if you buy the herbicide with glyphosate as a ready-mixed product tank-mix if you use glyphosate and add the other herbicide in your spray tank before application 21 what is/are the active ingredient(s) of the additional herbicide you mix? (list below name of product/herbicide) ________ litre or kg/ha ________ litre or kg/ha ________ litre or kg/ha ________ litre or kg/ha ________ litre or kg/ha ________ litre or kg/ha 22 what is the cost of one application/treatment (usd/ha)? __________________________________ cost of herbicide (local currency/ ha) cost of labourer/application per ha (local currency/ ha) total cost per ha (local currency/ ha) 23 how many applications do you make per year? _____________ also state how many years/cycle ___________ 24 what is the total cost per application/hectare? local currency _________________ 25 what is the total cost per hectare? local currency ______________ total cost = cost of application x number of application 26 what impact(s) do you think there will be if you could no longer use glyphosate. several answers are allowed. 1 poorer weed control 5 immature crop growth will not be optimal 2 weed control cost will increase 6 weeds will compete more with immature crop to get fertilizer appendix 3: questionnaire brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 23 3 yield will decrease 7 increased problem of pests and diseases 4 access to fields will be more difficult 8 the effective weed control cycle will be shorter other, please describe: __________________________________________________________________________ 27 if you can no longer use glyphosate, what other weed control method will you use? please describe. _________________________________________________________________________________________________ 28 what is the cost of the alternative methods of weed control? (per application local currency/ha) _________________ other method/herbicide/ hand weeding cost (local currency/ha) cost of other herbicides (e.g., cost of herbicide) cost of labourer/application per ha total cost 29 how many applications will you expect to make? _____________________________________________ (please state in relation to the length of the perennial crop production phase)? 30 what is the total cost per year: applic cost x number of treatments local currency/ha _________________ glyphosate use in field crops (e.g., cereals, oilseeds) 31 if you use glyphosate in field crops, what are the main weeds you aim to control? (select only the most common and major weeds) grasses, please give common names_________________________________________ broadleaf, please give common names______________________________________ sedges, please give common names _______________________________________ fern, please give common names__________________________________________ others, please specify___________________________________________________ 32 how many litres of glyphosate do you apply per hectare to control these weeds? (if this varies by type of weed, please give more than one answer) ___________________ 33 do you mix glyphosate with other herbicides? no, use only glyphosate yes, mix with other herbicides 34 if yes, what kind of mix do you use? pre-mix if you buy the herbicide with glyphosate as a ready-mixed product tank-mix if you use glyphosate and add the other herbicide in your spray tank before application 35 what is/are the active ingredient(s) of the additional herbicide you mix? (list below name of product/herbicide) ________ litre or kg/ha ________ litre or kg/ha ________ litre or kg/ha ________ litre or kg/ha ________ litre or kg/ha ________ litre or kg/ha 36 what is the cost of one application/treatment (local currency/ha)? single glyphosate option mix option cost of herbicide (local currency/ha) cost of labourer/application per ha (local currency/ha) total cost per ha (local currency/ha) appendix 3: questionnaire brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 24 37 how many applications do you make per year? _____________ 38 total cost per year: local currency _________________ 40 what impact(s) do you think there will be if you could no longer use glyphosate. several answers are allowed. poorer weed control crop growth will not be optimal weed control costs will be increase weed will compete more yield will decrease increased problem of pests and diseases access to fields will be more difficult the effective weed control cycle will be shorter other, please describe: _______________________________________________ 41 if you can no longer use glyphosate, what other weed control method will you use? please describe. _________________________________________________________________________________________________ 42 what is the cost of the alternative methods of weed control? alt. weed control option (e.g., other herbicide) cost (local currency/ha) cost of other alternative product (e.g., herbicide) cost of labourer/application total cost 43 how many applications will you expect to make? _____________ 44 what is the total cost per year: applic cost x number of treatments local currency/ha _________________ glyphosate use in non crops/non agricultural uses other than for land preparation 45 if you use glyphosate for a non-agricultural use, what is this use and what are the main weeds you aim to control? if this use is only for land preparation and you have already answered questions above relating to land preparation, please ignore this section. a) what is the non agricultural use? _________________________________________ b) what are the main weeds you aim to control? (select only the most common and major weeds) grasses, please give common names ___________________________________ broadleaf, please give common names __________________________________ sedges, please give common names ___________________________________ fern, please give common names ______________________________________ others, please specify _______________________________________________ 46 how many litres of glyphosate do you apply per hectare to control these weeds? (if this varies by type of weed, please give more than one answer) ___________________ 47 do you mix glyphosate with other herbicides? no, use only glyphosate yes, mix with other herbicides 48 if yes, what kind of mix do you use? pre-mix if you buy the herbicide with glyphosate as a ready-mixed product tank-mix if you use glyphosate and add the other herbicide in your spray tank before application appendix 3: questionnaire brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 25 49 what is/are the active ingredient(s) of the additional herbicide you mix? (list below name of product/herbicide) ________ litre or kg/ha ________ litre or kg/ha ________ litre or kg/ha ________ litre or kg/ha ________ litre or kg/ha ________ litre or kg/ha 50 what is the cost of one application/treatment (local currency/ha)? single glyphosate option mix option cost of herbicide (local currency/ha) cost of labourer/application per ha (local currency/ha) total cost per ha (local currency/ha) 51 how many applications do you make per year? _____________ 52 total cost per year: local currency _________________ 53 what impact(s) do you think there will be if you could no longer use glyphosate? several answers are allowed. poorer weed control the effective weed control cycle will be shorter weed control costs will be increase weed will compete more other, please describe: 54 if you can no longer use glyphosate, what other weed control method will you use? please describe. _________________________________________________________________________________________________ 55 what is the cost of the alternative methods of weed control? alt. weed control option (e.g., other herbicide) cost (local currency/ha) cost of other alternative product (e.g., herbicide) cost of labourer/application total cost 56 how many applications will you expect to make? _____________ 57 what is the total cost per year: applic cost x number of treatments local currency/ha_________________ glyphosate use in roundup ready corn (philippines only) 58 how many applications of glyphosate do you use on roundup ready corn and when do you apply them (e.g., early stage of crop growth, matrure stage of crop growth) number of applications ___________________ stage of growth for applications (list) 59 do you use no or reduced tillage with roundip ready corn? yes no 60 how many litres of glyphosate do you apply per hectare in each application? application one ___________________ application two (if applicable) ___________________ application three (if applicable) ___________________ 61 do you mix glyphosate with other herbicides? no, use only glyphosate yes, mix with other herbicides appendix 3: questionnaire brookes — glyphosate use in asia and implications of possible restrictions on its use agbioforum, online advanced publication, 2019 | 26 62 if yes, what kind of mix do you use? pre-mix if you buy the herbicide with glyphosate as a ready-mixed product tank-mix if you use glyphosate and add the other herbicide in your spray tank before application 63 what is/are the active ingredient(s) of the additional herbicide you mix? (list below name of product/herbicide) ________ litre or kg/ha ________ litre or kg/ha ________ litre or kg/ha ________ litre or kg/ha ________ litre or kg/ha ________ litre or kg/ha 64 what is the cost of one application/treatment (local currency/ha)? single glyphosate option mix option cost of herbicide (local currency/ ha) cost of labourer/application per ha (local currency/ ha) total cost per ha (local currency/ ha) 65 how many applications do you make per year? ____________ 66 total cost per year: local currency _________________ 67 what impact(s) do you think there will be if you could no longer use glyphosate and roundup ready corn? several answers are allowed. grow conventional corn it will make it more difficult to continue with reduced/no tillage grow a different crop (state which one) may have to stop using no/reduced tillage and start ploughing again leave land uncultivated use land for a different agricultural activity (e.g., livestock) other, please describe: _______________________________________________________________________________ 68 if you can no longer use roundup ready corn and you switch to conventional corn or a different crop, what weed control methods will you use? please describe. __________________________________________________________ 69 what is the cost of the alternative methods of weed control? alt. weed control option (e.g., other herbicide) cost (local currency/ha) cost of other alternative product (e.g., herbicide) cost of labourer/application total cost 70 how many applications will you expect to make? _____________ 71 what is the total cost per year: applic cost x number of treatments local currency/ha _________________ thanks for your cooperation to participate in this survey. your input is very valuable. appendix 3: questionnaire brookes — glyphosate use in asia and implications of possible restrictions on its use introduction materials and methods results context of glyphosate use in agriculture australia china india indonesia philippines thailand vietnam implications of restrictions on glyphosate use in agriculture potential economic impacts potential environmental impacts from changes in herbicide use conclusions references acknowledgement statistical sources appendix 3: questionnaire appendix 1: survey sample selection agbioforum, 25(2): 72-80. ©2023 agbioforum energy consumption and environmental degradation in iraq: the role of renewables, electricity, fossil fuels, and natural resources sabah abdul ameer department of automobile engineering / college of engineering/al-musayab university of babylon, iraq email: sabah.abdulameer@uobabylon.edu.iq abbas hameed abdul hussein* college of it/ ahl al bayt university/ kerbala / iraq email: abbas@elearning.abu.edu.iq rusul jabbar abdul ridha department of medical engineering / al-manara college for medical sciences, amarah, iraq email: rusuljabar@uomanara.edu.iq bahira abdulrazzaq mohammed department of medical engineering / al-hadi university college baghdad,10011, iraq email: dr.bahera@huc.edu.iq raed khalid college of education/ al-farahidi university, baghdad , iraq dheyaa yahaia alhameedi department of anesthesia, college of health & medical technology, sawa university, almuthana, iraq email: dr.deyaa@sawa-un.edu.iq ahmed razzaq al-adday department of computer technical engineering, technical engineering college, al-ayen university, thi-qar, iraq email: aladday@alayen.edu.iq israa alhani department of medical engineering / mazaya university college/iraq israaalhani@mpu.edu.iq khudr bary freeh alsrray college of arts, department of media/ al-esraa university, baghad/ iraq email: khuder@esraa.edu.iq ahmed ayad abdo al-qader college of pharmacy/ national university of science and technology, dhi qar, iraq email: ahmed.ayad@nust.edu.iq *corresponding author: abbas hameed abdul hussein; email: abbas@elearning.abu.edu.iq the present research explores the impact of various factors, including electrical energy consumption, fossil fuel energy, renewable energy consumption, and natural resource sufficiency, on environmental degradation in iraq, using data from the world development indicator database from 2000 to 2021. the study utilizes the fully modified ordinary least squares (fmols) method to analyze the relationship among variables and diagnostic testing for heteroskedasticity and serial correlation. the results show that electrical energy consumption positively and significantly impacts environmental degradation, while natural resource sufficiency negatively influences environmental degradation. moreover, the study examines the moderating effect of natural resource sufficiency, revealing its significant influence on the linakge between renewable energy consumption and environmental degradation. however, no significant moderating effect is observed for electrical and fossil fuel energy consumption. the research sheds light on the importance of energy consumption and natural resources when addressing environmental issues. keywords: environmental degradation, fossil fuel, renewable energy consumption, natural resources, electrical energy, iraq 1. introduction according to global reports, iraq has been termed as the fifth major country sensitive to climate issues and environmental degradation (iom, 2022). in recent years, the climate-related challenges faced by the country pushed it to the edge of utmost failure. rapid urbanization in the wake of industrialization demands more sustainable choices and resources to execute sustainable energy projects. according to al-yasiri (2021b), post-2003 environmental pollution in iraq is a serious concern as it impacts the physical and social resources. the consideration for sustainable measures is the prerequisite for sustainable energy consumption in that region. it is also revealed that energy waste and depletion are becoming a significant threat to sustainable energy growth and development (al-yasiri, 2021a). through surveys and studies, it has occurred that the rapid population and mailto:sabah.abdulameer@uobabylon.edu.iq mailto:abbas@elearning.abu.edu.iq mailto:rusuljabar@uomanara.edu.iq mailto:dr.bahera@huc.edu.iq mailto:dr.deyaa@sawa-un.edu.iq mailto:aladday@alayen.edu.iq mailto:israaalhani@mpu.edu.iq mailto:khuder@esraa.edu.iq mailto:ahmed.ayad@nust.edu.iq mailto:abbas@elearning.abu.edu.iq agbioforum, 25(2), 2023 | 73 ameer, hussein, ridha, mohammed, khalid, alhameedi, al-adday, alhani, alsrray, al-qader — energy consumption and environmental … urbanization in iraq led to increased economic and social activities. with the increase in such activities, energy consumption is becoming manifold (akadiri et al., 2019). the inefficiency and unavailability of sustainable resources led the production centers to choose feasible and economical energy alternatives. however, the government took significant sustainable initiatives/ practical action and medium-term measures to boost the iraq energy sector. figure 1. suggested fossil fuel power plants, according to the ministry of electricity source: (al-kayiem & mohammad, 2019) to combat the environmental challenges, aptitude towards renewable, electrical, and fossil fuel energy get support from the ecological actors and policymakers. with the growth and performance of different industrial sectors, the debate shifted towards the challenges and opportunities of these resources in the long term. the past literature on sustainable energy consumption highlights the major limitations and benefits of adopting renewable energy methods. the study by semenova, al-dirawi, and alsaadi (2022) highlighted the environmental challenges from the perspective of fragile economies in the middle east. resource management and the adoption of environmental/sustainable technologies are one of the major limitations in fragile economic states. in such a context, iraq faces hurdles in ensuring sustainable tools' availability. moreover, the optimal utilization of natural resources is also one of the strategic factors in deciding the success of sustainable energy source adoption. tawfeeq, hayder, and ali (2022) emphasized that considering environmental quality is essential by minimizing energy consumption or adopting sustainable alternatives. the potential of biomass to maximize the bioenergy yield and curb environmental issues is one of the most debatable topics in iraq (alhassany et al., 2022). the distribution, accessibility, and availability of resources are the turning point in sustainable energy consumption. to develop long-term sustainable energy plans, it is important to understand the limitations and opportunities these methods provide. the past literature covered the sustainability energy issues and environmental degradation, but none of the studies considered multiple renewable resources at once in relation to the climate cause. in such context, the researcher identified the research gap and filled it by examining the role of renewable energy resources, electrical, and fossil fuel energy consumption on environmental degradation. besides the researcher also analyzes the moderating role of natural resource sufficiency. the quantitative research method is adopted to examine the relationship between selected factors. by contributing to the previous research stream, the present study will hold significant value for environmental policymakers and experts. moreover, the study's findings will assist energy experts in assessing the limitations and opportunities available for a better climate cause. the paper proceeds in an organized manner. the introduction section is followed by an extensive review of the previous literature studies. next, the methodological choices of the research will be explained and justified. the results will be analyzed and discussed. based on the findings, a conclusion will be drawn along with future indications and recommendations. 2. literature review 2.1 theoretical framework there are different theories present in the literature providing a theoretical base for the concepts of energy, its consumption, and its effect on the environment, like climate theory, the theory of energy efficiency (mahlia, masjuki, & choudhury, 2002), the energy consumption modeling (dietmair & verl, 2008), and the most popular ekc hypothesis (saqib et al., 2022). this study has approached the most applied foundation ekc for its conceptual base. the ekc hypothesis was first developed by (kuznets, 1955, 2019), it was the first assertion regarding the connection between carbon dioxide emission and its determinants, and based on this idea, kuznets developed the ekc hypothesis contending the negative influence of co2 emission on the environmental growth. despite its old theoretical conception, it still possesses significance in the 21st-century era, and several studies have used it in their work. a study (tenaw & beyene, 2021) has investigated the drawbacks and issues in environmental sustainability based on the relationship of the ekc hypothesis and agbioforum, 25(2), 2023 | 74 ameer, hussein, ridha, mohammed, khalid, alhameedi, al-adday, alhani, alsrray, al-qader — energy consumption and environmental … concluded significant results. a systematic review (mahmood et al., 2023) has argued about the ekc hypothesis's validity in china and revealed the significance of this hypothesis 4.46 times higher than its nonsignificance. authors (bibi & jamil, 2021) have investigated the link between air pollution and economic growth based on the conception of the ekc hypothesis, and they provided the importance of this concept for testing the association of different environmental factors and their impact on its depletion. 2.2 impact of energy resources on environmental degradation environmental degradation has been defined as the presence or absence of naturally favorable resources that emulsify or retard the natural socio-economic development process, and the main issues that come under environmental degradation were mentioned as degradation of land, dropping rate of biodiversity, resource reduction, and poor public health (ray & ray, 2011). several studies have targeted energy resource consumption on environmental degradation and have provided their contributions to the literature. naradda gamage, hewa kuruppuge, and haq (2017) investigated the role of energy resource consumption and tourism development in the prevention of environmental degradation, and they manifested in their discussion to find ways to create and adopt renewable energy resources for the mitigation of co2 emissions with the increase in tourism and for the depletion of their natural environment. a renewable energy source has been examined to check whether it has a controlled effect on environmental degradation, and it has been called a safe, cheap, and clean energy source that has a negative association with increasing environmental degradation (ozcan, tzeremes, & tzeremes, 2020). electricity is an ancient source of energy, and it also comes at some cost. for this confirmation, a recent study (rahman, 2020) has investigated electricity consumption, economic growth, and globalization for the emission of co2 in most electricity-consuming countries, and it has revealed the significant influence of electricity consumption on co2 emission in these countries. studies have encountered the interconnection of energy consumption, economic growth, and environmental degradation, and the combined pattern working of economic growth and energy consumption have emerged and stated a good approach for the prevention of environmental degradation (ozcan, tzeremes, & tzeremes, 2020). the leading cause of the increase in environmental degradation has been noticed in the use of non-renewable energy sources that return nothing to the environment; a recent study studied the influence of energy resources consumption on co2 emission (khan, khan, & rehan, 2020) and based on their results they have raised the concept to use environment-friendly renewable energy resources to safe the environment from further damage and depletion. in literature, the environmental kuznets curve [ekc] approach has been widely applied in the conception of environmental degradation, and a recent study has investigated the economic complexity, globalization, and renewable and non-renewable energy both on the environment degradation as co2 emission, and they highlighted the positive significance of renewable energy resources on the prevention of co2 emission, and indirect support for the environmental safety (pata, 2021). there is another safe source of energy that is energy by fossil fuels, and for the importance of this energy source, a very recent study has targeted the second-highest carbonemitting country to focus on making policies and projects for the implementation of non-fossil fuel-based and renewable energy resources for the reduction in the rate of environmental degradation (kartal et al., 2022). another study has highlighted the importance of fossil fuel energy and has investigated it’s decreasing effect on environmental degradation reduction in saarce countries (rani et al., 2022). in their findings, they discussed the increasing correlation between fossil fuel energy and environmental degradation and called the policymakers to make strategies for reducing environmental pollution and depletion. the literature has highlighted the status of non-renewable resources and the significance of renewable resources, providing the researcher with enough knowledge to develop the following hypothesis for testing within iraq: h1: energy sources have a significant favorable influence on environmental degradation. 2.3. the moderating role of natural source efficacy the natural sources’ efficacy and efficiency have been investigated in several past studies. a report has addressed the urgency of the policies and considerable steps for the increase in the natural resources to balance the current destruction caused by the mass human population and their degrading activities (ekins et al., 2016). the expansion in the human volume has depleted natural resources at alarming rates, and measurements were required to prevent the world from entering an irreversible hazardous situation. in india, the ports have been used as the primary source of transportation, and it has been observed that port activities have been damaging the water environment by disposing of waste material and toxins in water and have compared the successive rate of some of the implemented preventive measures against pollution (sharma & das, 2020). the rate of investment for the ecological abundance have been analyzed with the current natural resources, foreign investment, and human capital, and it has been narrated the positive role of natural resources and human capital for the increase and prevalence of ecological footprint (zafar et al., 2019). a recent study has investigated the relationship between the natural resources’ abundance and environmental degradation by controlling economic growth (ahmed et al., 2020), and they have found fruitful and prospective influences for decreasing environmental degradation and have the promotive ability for the ecological footprint and the development of natural resources. another study (ahmed et al., 2020) has investigated the ecological footprint with the factors of natural resources, economic growth, and technology; the finding of the analysis revealed that all natural resources, technological agbioforum, 25(2), 2023 | 75 ameer, hussein, ridha, mohammed, khalid, alhameedi, al-adday, alhani, alsrray, al-qader — energy consumption and environmental … innovation, and economic growth have significant correlations in the long run. according to these recent studies, natural resources have been called a key base for improving the environment and abundance of ecology. different countries have investigated their natural resources, and every country has encountered the need to increase the ecological sources and the lack of policies and awareness for the environment-friendly energy sources and to raise the human capital for the abundance of natural resources, and the same has been stated in a study conducted in japan (adebayo & kirikkaleli, 2021). in developing countries like iraq, the concept of environment management accounting has been examined in the iraqi industries to analyze companies’ decisions about preserving natural resources and the environment (falih chichan & alabdullah, 2021). this recent study has reflected that there is no awareness of environmental degradation and the value of natural resources in iraq, reflecting a considerable gap in the literature about the neglect of researchers and practitioners for the safety of natural resources. the following hypothesis has been designed to estimate the level of awareness about natural resources exactly: h2: natural resource efficiency have a moderating role in the relationship between energy resources and environmental degradation. figure 2: the empirical model for hypothesis testing. 3. methods 3.1. research design the present research has adopted a “secondary quantitative research design” to study the relationship among variables. there are multiple benefits of this method as it enhances the probability of the result’s accuracy to a great extent. data collected from reputable and authentic sources increases the result’s quality and increase the level of authenticity. the present research has been conducted to study environmental degradation through renewable, fossil fuel energy and electrical energy consumption. for this purpose, the role of natural resource sufficiency has also been studied. 3.2. data collection the present research has targeted the “world development indicator” to get the data regarding variables of this study, such as environmental degradation, renewable, fossil fuel energy, electrical energy consumption and natural resource sufficiency. according to (harris, schiantarelli, & siregar, 2000; swanson, 2006), the world development indicator is a database of the global economic conditions across six different dimensions, including people, states, environment, economy, markets and global linkages etc. therefore, high-quality and globally comparable statistics are present on wdi, due to which researchers prefer to assess the issues and concepts of global development through this source. in the present research, data regarding these variables in iraq has been collected from 2000-2021. 3.3. variables description the description of variables, along with their abbreviation, status in the study and sources from where data regarding these variables have been collected, is presented below: table 1: variables description variables status of variables description source environmental degradation dependent variable environmental degradation is the deterioration of the environment through resource depletion such as water, soil and air; the damage to the ecosystem and the extinction of wildlife are the result of environmental degradation (howard, 1991) wdi renewable energy consumption independent variable renewable energy consumption can be defined as the energy consumption of energy from renewable means, including wind, soil, hydro, marine, biogas, waste and liquid biofuels etc. (sadorsky, 2009). wdi fossil fuel energy ffe fossil fuel energy includes natural gas, oil and coal which are non-renewable resources which are formed when animals and plants are dead and are buried by rock layers gradually (martins, felgueiras, & smitková, 2018). wdi electric energy consumption eec the quantity of electrical energy that has been consumed in a specific time period is called electric energy consumption (nizami & al-garni, 1995). wdi natural resource sufficiency nrs the sufficient amount or the existence of natural resources in a nation adequately is the natural resource sufficient (aage, 1984). wdi 3.4. econometric model the present research has applied a series of different tests to conduct the data analysis. in the first step, the test for descriptive statistics has been performed to assess the characteristics of data, the minimum, maximum and mean values, along with the values of jarque-bera probability to assess the data normality. in the second step researcher performed a unit root test leading to the fmols test, and in the last section, tests energy resources environmental degradation natural resources efficiency h1 h2 agbioforum, 25(2), 2023 | 76 ameer, hussein, ridha, mohammed, khalid, alhameedi, al-adday, alhani, alsrray, al-qader — energy consumption and environmental … for serial correlation along with heteroscedasticity have also been performed. 3.4.1. group unit root test a unit root test examines whether a time series variable is non-stationary, and this can be done through the autoregressive model. this test has been applied in the present research and holds greater significance as it investigates whether a time series variable entails a unit root. the null hypothesis is usually defined as the existence of a unit root, and the substitute hypothesis is “stationary, trend stationary or explosive root”, depending on the test being conducted (choi, 2001). in the present research unit root test has been performed in two phases. firstly the researcher tested the lag length selection based on 0 to 1, whereas in the second phase, the researcher selected an automatic lag length from 0 to 3. 𝛥𝑦𝑖,𝑡 = 𝑎𝑖 + 𝜌𝑦𝑖,𝑡 − 1 + ∑ 𝑎𝐽𝛥𝑦𝑖,𝑡−𝐽 𝑝𝑖 𝐽=1 + 𝜀𝑖,𝑡 3.4.2. fully modified ordinary least square fmols in the second step, the researcher aimed to analyze the association among variables as the researcher has studied the impact of environmental degradation in iraq on renewable, fossil fuel energy, electrical energy consumption and natural resource sufficiency. for this purpose, fmols has been applied by the researcher. according to bashier and siam (2014), the fully modified ordinary least square method is adopted to develop new techniques for assessing the “co-integrating coefficients”. fmols takes into consideration the nuisance parameters and the auto-correlations, and the phenomenon of heteroscedasticity of the residuals. 𝛽𝑁𝑇 ∗ − 𝛽 = ( ∑ 𝐿22𝑡 −2 𝑁 𝑡=1 ∑(𝜒𝑛−�̅�𝑈)2) ∑ 𝐿11𝑡 −1 𝐿22𝑡 −1 𝑁 𝑡=1 (∑(𝜒𝑎 𝑇 𝑡=1 𝑇 𝑡=1 − �̅�𝑡) 𝜇𝑢 ∗ − 𝑇�̂�𝑡 where, 𝜇𝑡 ∗ = 𝜇𝑡 − �̂�21𝑡 �̂�𝑡𝑡2 δ𝜒𝑡 , 𝛾𝑡 = γ̂21𝑡ω̂21𝑡 0 − �̂�21𝑡 �̂�𝑡𝑡2 ( γ̂22𝑡 + ω̂22𝑡 0 ) 4. results table 2 presents the descriptive statistics for all variables analyzed in this study. the majority of the variables in the study have normal distributions. the kurtosis coefficients for all variables are greater than 1, indicating leptokurtic distributions. furthermore, the high coefficient of jarquebera (jb) and the probability value of jb statistics for ed indicate the rejection of the null hypothesis of normal distribution. therefore, ed has non-normal distribution. however, epc has a p-value greater than 0.05, indicating normal distribution. similarly, the small jb coefficients of ffe, rec and tnr confirm that the series is normally distributed. in conclusion, the skewness, kurtosis, and jarque–bera statistics collectively indicate that all variables, except ed and the interacting term tnr*rec, in this study do follow a normal distribution. table 2: descriptive summary of the variables ed epc ffe rec tnr tnrxepc tnrxffe tnrxrec mean 3.341865 718.8942 66.84078 1.026818 47.52372 36914.62 3467.057 50.89668 median 3.509095 878.9786 97.33914 1.020000 46.91325 51264.24 4590.693 36.73004 maximum 4.347264 1334.177 99.72154 2.560000 65.31850 73557.90 6430.431 163.1410 minimum 0.000000 0.000000 0.000000 0.000000 27.41701 0.000000 0.000000 0.000000 std. dev. 0.865040 528.1732 46.74670 0.687600 9.669061 27092.34 2502.734 43.29428 skewness -2.671041 -0.502960 -0.779169 0.710974 0.129086 -0.508507 -0.577987 1.488108 kurtosis 11.30609 1.545362 1.609331 2.863712 2.806687 1.564547 1.615941 4.518485 jarque-bera 89.40150 2.867196 3.998845 1.870466 0.095354 2.836939 2.980906 10.23336 probability 0.000000 0.238449 0.135413 0.392494 0.953442 0.242084 0.225271 0.005996 sum 73.52102 15815.67 1470.497 22.59000 1045.522 812121.6 76275.26 1119.727 sum sq. dev. 15.71418 5858306. 45890.34 9.928677 1963.306 1.54e+10 1.32e+08 39362.29 observations 22 22 22 22 22 22 22 22 table 3 presents the results of unit root tests for panel data conducted at both the level and in the first difference. determining the stationarity of variables is crucial when analyzing time series data, and the study utilized various tests, including levin–lin–chu (llc) test, im–pesaran– shin (ips) test, fisher–adf test, and fisher–pp test. the null hypothesis of these tests assumes that all series are non-stationary, which implies that the series has a unit root, while the alternative hypothesis suggests that all series are stationary. the acceptance or rejection of the null hypothesis depends on the probabilities and statistics obtained from the tests relative to a 10% threshold level. at the level, it was found that the variables are nonstationary based on insignificant probabilities, indicating the presence of a unit root. nonetheless, at the first difference, all variables were found to be stationary, providing evidence that the null hypothesis cannot be accepted. table 3: unit root test at level at first difference method statistic prob.** statistic prob.** null: unit root (assumes common unit root process) levin, lin & chu t* 0.28838 0.6135 -8.62114 0.0000 null: unit root (assumes individual unit root process) im, pesaran and shin w-stat 0.00079 0.5003 -6.32504 0.0000 adf fisher chi-square 14.3175 0.5751 77.3916 0.0000 pp fisher chi-square 11.3517 0.7873 81.5255 0.0000 agbioforum, 25(2), 2023 | 77 ameer, hussein, ridha, mohammed, khalid, alhameedi, al-adday, alhani, alsrray, al-qader — energy consumption and environmental … the study employed fmols to capture the effect of the explanatory variables, electrical energy consumption (epc), fossil fuel energy (ffe), renewable energy consumption (rec), and natural resource sufficiency (tnr), on environmental degradation (ed). the past value of ed, at t-1, has a negative impact on ed in iraq. however, with a p-value of 0.74, the association is regarded as insignificant. secondly, epc is revealed to have a positive impact on ed in iraq and with a p-value of 0.08, the relationship between epc and ed is significant at a 10% significant level. the third result shown in table 4 is the association between ffe and ed. ffe negatively affects ed; nevertheless, with a p-value greater than 0.1, the impact is not significant. rec also has a negative influence on ed. with a p-value of 0.9962, the relationship between rec and ed is not significant. lastly, the study analyzed the role of natural resources in predicting ed in iraq. tnr negatively impacts ed, as shown in the table below, and the result is significant at a 10% significance level. at t-1, the lagged value of tnr positively influences ed. with a p-value below 0.05, tnr significantly influences ed at a 5% significance level. the r-squared value is 0.32, indicating that the independent variables account for 32.7% of the movement in ed. table 4: fmols variable coefficient std. error t-statistic prob. ed(-1) -0.237431 0.700898 -0.338752 0.7402 epc 0.003261 0.001718 1.898542 0.0800 ffe -0.041266 0.023512 -1.755118 0.1028 rec -0.001778 0.364262 -0.004880 0.9962 tnr -0.049540 0.026314 -1.882639 0.0823 tnr(-1) 0.086924 0.037287 2.331200 0.0365 c 2.734174 2.967431 0.921394 0.3736 r-squared 0.326595 mean dependent var 3.306309 adjusted r-squared 0.015792 s.d. dependent var 0.900210 s.e. of regression 0.893074 sum squared resid 10.36855 long-run variance 0.537786 table 5: moderation analysis variable coefficient std. error t-statistic prob. ed(-1) 0.212168 0.613990 0.345556 0.7368 epc 0.012593 0.009004 1.398712 0.1921 ffe -0.135000 0.096005 -1.406178 0.1900 rec 3.875453 1.725728 2.245691 0.0485 tnr 0.062603 0.060209 1.039759 0.3229 tnr(-1) 0.075679 0.031464 2.405278 0.0370 tnrxepc -0.000204 0.000171 -1.195469 0.2595 tnrxffe 0.001958 0.001789 1.095024 0.2992 tnrxrec -0.071217 0.029984 -2.375168 0.0389 c -3.776647 3.940835 -0.958337 0.3605 r-squared 0.447139 mean dependent var 3.306309 adjusted r-squared -0.050436 s.d. dependent var 0.900210 s.e. of regression 0.922632 sum squared resid 8.512507 long-run variance 0.289929 subsequently, the study examined the moderating effect of tnr between energy consumption and ed. the outcomes are displayed in table 5, presenting the results of long-run estimations with the inclusion of tnr as a moderator. the empirical findings showed that with the inclusion of moderating terms, the variables epc does not maintain its level of significance. additionally, there is a change in the sign of the coefficient and significance of rec. this change in sign and significance indicates that tnr plays a crucial role in influencing the impact of rec on ed. the presence of tnr is decreasing the positive association between rec and ed. however, tnr does not significantly moderate the association between other forms of energy and ed. with the inclusion of the moderator, the r-squared value increased to 44.7%. diagnostic tests, such as heteroskedasticity and serial correlation tests, are conducted to assess the reliability of the results obtained from the fmols model. these tests help ensure the validity and accuracy of the model’s outcome. in the given models, no issues of autocorrelation were observed, as indicated by the acceptance of the null hypothesis in the “breusch–godfrey serial correlation lm test” shown in table 7. additionally, the evaluation of heteroskedasticity using “engle’s arch test” in table 8 revealed the absence of any heteroskedasticity problem. table 7: breusch-godfrey serial correlation lm test f-statistic 0.590818 prob. f(2,12) 0.5692 obs*r-squared 1.882494 prob. chi-square(2) 0.3901 table 8: heteroskedasticity test: arch f-statistic 0.036231 prob. f(1,18) 0.8512 obs*r-squared 0.040176 prob. chi-square(1) 0.8411 5. discussion the study considered the significance of different energy consumption methods on environmental degradation. due to the rising concerns about environmental threats and climate issues, energy consumption behaviors have been criticized worldwide. in the middle east, the global bodies, i.e., the un, actively supported sustainable development goals and responsible production and consumption. despite the measures taken by iraq’s government, sustainable energy measures are unsatisfactory in this region. the researcher, therefore, analyzed the role of renewable, electrical, and fossil fuel energy consumption on environmental degradation. the researcher has applied fmols to analyze the association between variables. the assessment of co-integrating coefficients presents the association between variables by including natural resource sufficiency as a factor. the results indicate the negative role of natural resource sufficiency in determining the environmental degradation in iraq. it is consistent with the previous studies, i.e., zaidi et al. (2019) highlighted that the natural resource abundance reflects the country's self-sufficiency and strengthens the motive to enhance sustainable practices within different sectors. the abundance of natural resources leads to positive financial development. the boost in economic performance thus stabilizes production activities and makes them more sustainable, resulting in less environmental degradation. it is also confirmed by litvinenko and sergeev (2019), who associated natural resource management with sustainable innovations. the link between the two thus determines the outcomes of environmental measures and observation. ahmad et al. (2020) identified a strong relationship between natural resources, human capital, consumption behavior, and a sustainable environment. it is revealed that natural resource sufficiency is significant, but the natural resource rent is negatively associated with the ecological footprint. in such case, the economic growth agbioforum, 25(2), 2023 | 78 ameer, hussein, ridha, mohammed, khalid, alhameedi, al-adday, alhani, alsrray, al-qader — energy consumption and environmental … and unsustainable utilization of natural resources contribute to the environmental degradation. the researcher also examines the moderating impact of natural resource sufficiency associated with renewable energy, fossil fuel, and electrical energy consumption. the results indicate a significant role of renewable energy consumption in relationship with environmental degradation in the presence of energy sufficiency as moderating variable. the results are consistent with the findings of previous research studies. usman, alola, and sarkodie (2020) identified a dynamic role of renewable energy in environmental sustainability. by providing empirical evidence, it is confirmed that renewable energy consumption, along with economic growth, slowdown environmental degradation and lowers the ecological footprint. the results also identified a strong moderating effect of energy resource efficiency between renewable energy consumption and environmental degradation. the strong nexus between these factors is examined by sharif et al. (2020), who identified a negative association between renewable energy consumption and environmental degradation in countries like japan, the usa, and south korea, but the results are contrary in the context of india, russia, indonesia. it implies that the regional energy consumption behavior determines the relationship between two. apart from the renewable energy consumption, energy resource sufficiency have no moderating effect between the environmental degradation and other energy consumption patterns. 5.1 conclusion environmental degradation has become one of the most debatable topics in global sustainable practices. the sustainable development goals directed the energy consumption behavior towards the prevalence of sustainable aptitude for longer. besides the growing awareness of sustainable energy consumption, the governments in the middle east took collective measures to ensure sustainable energy projects. the efforts in the form of measures, actions, and policies significantly reduce the environmental impacts of energy consumption. with the contemporary trend of sustainable energy in iraq, the researcher considered the impact of renewable, electrical, and fossil fuel energy. the quantitative research method was adopted, and the data from 2000-2021 was collected from the world development indicator. the researcher utilized fully modified ordinary latest squares to analyze the relationship between selected variables. the results indicate that electrical energy consumption has a significant positive impact on environmental degradation. it implies that electrical energy consumption has certain setbacks, which keeps its utility restricted to certain areas. on industrial and larger agricultural levels, the adoption of such measures has severe ecological footprints. the results also indicate that natural resource sufficiency negatively influences environmental degradation. the moderating results of the study showed that natural resource sufficiency significantly influences the relationship between renewable energy consumption and environmental degradation. while on the other hand, no significant moderation is observed between electrical and fossil fuel energy consumption and environmental degradation. 5.2 research implications the present study contributes significant knowledge to the contemporary research debate on environmental degradation and sustainability issues. on the basis of their findings, the study is valuable on both theoretical and practical grounds. theoretically, the study will be significant in establishing a strong theoretical base for the understanding of these factors. the researchers can utilize this data to address the research problem in multiple contexts. by identifying and covering the research gaps, the study holds significance in the current research debate on environmental values and sustainable energy consumption. practically, the findings will be valuable to the relevant stakeholders, i.e., the energy sector’s policymakers, energy analysts, environmental experts, and lawmakers. the data provided in this study will be helpful to the energy sectors in analyzing the variance between energy resource choice and its impact on overall sustainable performance. for the environmentalist, the study holds significance as it provides the limitations and opportunities of each energy consumption method in relation to environmental degradation. the individual analysis and impact of each method were made by the researcher, which provides an in-depth look into consumption behaviors and responsible environmental changes. 5.3 limitations and recommendations despite covering multiple issues related to environmental degradation, the present study has certain limitations. the methodological choices of the researcher restrict the findings of the research study. the quantitative approach has been utilized, and the data was obtained from secondary sources. the findings extracted on the base of secondary data have certain setbacks which limit the scope of the study. as environmental degradation and energy consumption are becoming a problem of each working sector, the qualitative analysis of the issues from the relevant bodies, i.e., energy and resource management authorities and environmentalist experts, can provide a broader outlook on the issues. regarding the research problem, the regional focus was on iraq. as the issue is examined in the context of iraq, the findings are harder to apply in any other country context. to expand the scope of the study, it is therefore recommended that future researchers analyze these issues in the context of countries having similar economic and agro backgrounds. the analysis this way would be more significant in understanding the regional connectivity of the middle east in respect of environmental stability and sustainability. lastly, the energy methods which are taken into consideration include renewable energy, fossil fuel, and electrical energy. for the 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https://doi.org/10.1063/5.0066838 https://doi.org/10.1016/j.rser.2021.110897 https://doi.org/10.1016/j.renene.2019.12.151 https://doi.org/10.1016/j.resourpol.2019.101428 https://doi.org/10.1016/j.resourpol.2019.101476 agbioforum, 24(2): 196-205. ©2022 agbioforum implementation of national health insurance policy through the social security implementing agency health during the pandemic the covid-19 bambang santoso haryono faculty of administrative sciences, brawijaya university, indonesia email: bambangsfia@ub.ac.id ahmad rizki sadiq faculty of administrative sciences, brawijaya university, indonesia email: riskisadig@yahoo.com abdul hakim faculty of administrative sciences, brawijaya university, indonesia email: hakimend61@gmail.com imam hanafi faculty of administrative sciences, brawijaya university, indonesia email: imamhanafi@ub.ac.id the covid-19 pandemic has significantly impacted global health, notably in indonesia. the indonesian government reacted swiftly to the increase in cases by implementing strategic measures to sustain the health and economic recovery momentum and combat the pandemic's huge expansion. this necessitates the indonesian government takes extraordinary policy measures to address health issues, protect the general public with social security, and defend the business sector as a top priority. this study aims to describe the social security administration agency's implementation of health insurance policies during the covid-19 pandemic in indonesia. this study utilizes crosssectional data and a likert scale questionnaire to obtain information. during the covid-19 epidemic, the development of national health insurance policies must be founded on the state's responsibility to meet the people's safety and fundamental needs through comprehensive health care. the research is new to the academic literature, and its findings establish a novel relationship. the study has theoretical and practical implications for enhancing indonesia's health care. the recommended future directions for this research are reasonable for contributing significantly to future research. key words: implementation policy, national health insurance, social security implementing agency, pandemic covid-19. 1. introduction universal health coverage (uhc) is a health service guarantee scheme with a prepaid healthcare funding system designed to provide the population with quality health services. the global impact of the covid-19 pandemic has influenced socio-economic, unemployment, and social and health inequalities between men and women, posing a threat to the global economy. political and social leaders are crucial in establishing policies encouraging worker participation and continued community education (dartanto, halimatussadiah, et al., 2020). the health system arose in the 19th century due to the people's expectation that an organized health social security system would be implemented to benefit broad and social coverage of public health services (muttaqien et al., 2021). the purpose of universal health coverage is to ensure that all individuals and groups have access to basic medical care throughout their lives, including protection, diagnosis, rehabilitation, and pain management. each nation must evaluate the policy model of the healthcare coverage system, which includes the capacity to support health workers, health service facilities, and budget management, to provide effective, efficient, and productive services for the benefit of society (osungbade et al., 2014). the covid-19 pandemic has provided important lessons and reflections on the need to improve the national health insurance policy (nhip) in indonesia, particularly "prevention capabilities including testing, tracing, and tracking as well as handling capabilities in the mobilization of health resources such as health facilities, pharmaceuticals, and medical devices, health workers, laboratories, and health financing." a political comprehension of uhc is required to get health for all (laksono et al., 2021). the covid-19 pandemic is a turning point and the correct impetus to reevaluate health insurance policy for the entire community in pursuing sustainable development goals (sdgs). indonesia confronts global issues and assures its readiness to meet pandemics and other health calamities (yuniarti et al., 2019). the government of indonesia has updated the uhc system to align with the conditions and goals of "professional, efficient, and effective national health care that reaches all levels of society." during the global covid19 pandemic, the uhc program that is integrated between the national social security system (nsss) and the national health system is highly relevant for the execution of public health based on the cooperation, solidarity, and empathy of all citizens. increased media engagement for public education about the covid-19 pandemic is crucial for reducing uncertainty during the epidemic (moeloek, 2017). following the constraints posed by the distributive justice component of establishing the hospital care service system, promoting equality in utilizing high-quality health care is essential (barua et al., 2020). uhc objectives and obstacles to achieving the sdgs by 2030 necessitate a national budget allocation mechanism to combat the "covid-19 pandemic" (erlangga et al., 2019). the theory of public policy that underpins research on the implementation of national health policy is anderson's theory, which states that public policy is a relationship mailto:bambangsfia@ub.ac.id mailto:riskisadig@yahoo.com mailto:hakimend61@gmail.com mailto:imamhanafi@ub.ac.id agbioforum, 24(2), 2022 | 197 haryono, sadiq, hakim and hanafi. — implementation of national health insurance policy through the social security … between a government unit and the environment that is formulated by an actor such as an executive/president through a presidential decree or a decision by several actors including executive, legislative, and judiciary (moeloek, 2017). in a crisis of this nature, formulating public policy in response to situations and occurrences during a pandemic requires boldness, precision, and swiftness. social protection policy aims to ensure that everyone can meet their basic necessities for a good existence. "the nsss policy is the procedure for administering the social security program by the health and manpower social security administration" (aizawa, 2019; barua et al., 2020). this study examines the implementation of the nhip in indonesia via the "social security administration body" for health. to discuss the implementation of national health policies in hospitals, researchers employ a central government-developed implementation mechanism approach. in this study, four aspects of the implementation of the health insurance program are examined: the health budget allocation policy during the covid-19 pandemic, the drug distribution policy in handling the covid-19 pandemic, the policy on the realization of funds for health workers during the covid-19 pandemic, and the policy for "recipients of health insurance contribution assistance" during the covid-19 pandemic. this research contributes to the description of critical situations or events in the field regarding the decision-making and implementation of the nhip through the "social security" implementing agency health during the covid-19 pandemic in the indonesian economy, society, and health. 2. review of literature according to budiono et al. (2020), a policy is "the intellectual task of decision making that includes the explanation of objectives, deliberation of trends, analysis of circumstances, projections of future development and research, assessment and research, and the evaluation and selection of potential outcomes." according to the opinion of suparmi et al. (2019), "a policy is defined as an intellectual task of decision-making that includes a description of the tendency to select multiple goals that are appropriate to the situation, the development of the impact and performance of future policies, and the conduct of research and evaluation." according to li et al. (2012) to comprehend the many definitions of public policy, several fundamental principles must be understood. according to dartanto, pramono, et al. (2020) "public policies are actions made and implemented by government agencies that represent legal, political, and financial authority". wulandari et al. (2020) state that "public policy seeks to address problems or concrete needs that emerge in society". "generally speaking, public policy is not a single decision, but rather a collection of actions or strategies chosen to achieve certain goals for the benefit of the people" (hsu et al., 2015). according to muhlis (2022), public policy is typically a communal effort to address societal issues. however, public policy can also be established based on the premise that the existing policy framework would resolve societal problems and, as a result, some activities are unnecessary. moreover, "public policy contains a statement or justification for the formulated steps or action plans" (sari et al., 2019). according to laksono et al. (2021) "decisions that have been formulated in public policy can be made by a government agency or by several representatives of government institutions". nasution et al. (2020a) classify the stages of public policy as "policy formation and design, policy implementation, and policy evaluation." in the meantime, nasution et al. (2020b) state that "there are five stages in the policy process, namely problem identification, formulation, legitimacy, application, and evaluation." according to fossati (2016) "there are five stages of the public policy process." initially, dartanto, halimatussadiah, et al. (2020) stated, "identification of needs is to identify the needs of the community in development by following several criteria, including data analysis, sample analysis, statistical data, simulation models, causal analysis, and forecasting techniques." muttaqien et al. (2021) also reported "formulation of policy proposals that include strategic factors, generic alternatives, technological stability, and environmental impact analysis." in addition, laksono et al. (2023) claimed that "adoption involves political feasibility analysis, a combination of multiple political theories, and the application of unemployment techniques." indeed, barua et al. (2020) claimed that "implementation of the program includes organizational forms, scheduling model, elaboration of decisions, pricing decisions, and implementation scenarios." similarly, anggriani et al. (2020) observed that "evaluation utilizes experimental methods, information systems, auditing, and surprise evaluation." the nsss is an indonesian social security system established by law no. 40 of 2004. (dartanto, halimatussadiah, et al., 2020). according to dartanto, pramono, et al. (2020), "this social security is a form of social protection organized by the republic of indonesia to ensure its citizens live a decent life and realize an independent, progressive, just, and prosperous indonesian society." according to muttaqien et al. (2021), article 34, paragraph 2 of the constitution of 1945 states, "the state shall develop a social security system for all people and empower the weak and incapable through human dignity." the following programs were implemented when the nsss went into force on january 1, 2014: first, "health insurance is required to ensure that participants receive health care benefits and protection to meet their fundamental health needs." the second purpose of work accident insurance is to ensure that participants receive health care benefits and monetary compensation in the event of a workplace accident or occupational sickness. thirdly, "old age insurance is maintained to ensure that participants receive cash upon retirement age, sustaining a total and permanent disability, or passing away." fourthly, agbioforum, 24(2), 2022 | 198 haryono, sadiq, hakim and hanafi. — implementation of national health insurance policy through the social security … "pension insurance is provided to help participants maintain a decent standard of living when they lose or reduce their income due to retirement or total permanent disability." fifthly, "death insurance is believed to provide death benefits paid to participants' heirs" 3 (three) principles, namely "the principle of humanity, the principle of benefit, and the principle of social justice for all indonesian people," as well as 9 (nine) principles, namely: "cooperation, non-profit, openness, prudence, accountability, portability, mandatory participation, mandated funds, and the results of fund management," support the implementation of the nsss. the "social security administering body for health" is a "public legal entity" created by the government to handle the nhi program for all indonesian citizens. "the formation of health is based on law no. 24 of 2011 regarding the mechanism or procedure for its implementation, which is governed by ministerial regulation no. 71 of 2013 on health services in the national health insurance" (laksono et al., 2021). according to the 2016 bpjs report, around 70% of indonesia's entire population, or approximately 172 million indonesians, are enrolled in the "national health insurance system" (yuniarti et al., 2019). the goal is to attain "universal health" insurance coverage by the end of 2019, when the whole population of indonesia, estimated at that time to be 257.5 million people, has been registered as a participant in health insurance (moeloek, 2017). the benefits package or guaranteed health services formulated in the sjsn law is a guaranteed health service package that is by the principles of social insurance; guaranteed health services are to meet the basic health needs of each participant, and health insurance benefits are comprehensive individual services includes; promotive, preventative, curative, and rehabilitative services; the guarantee package must be adequate and beneficial to ensure the continuation of the program and its benefits; and the guarantee package must be sufficient and beneficial to ensure the continuity of the program and its benefits. the amount of contributions is the key to "sustainability, the quality of health insurance, the impact on new poverty, and increasing population productivity" (barua et al., 2020). the nsss law has governed contributions to health insurance. the availability of high-quality health services at a reasonable distance is the second element to the successful implementation of the nhi. the health law stipulates that nhi will pay an agreed-upon amount for government-owned and privately-owned health institutions in a given area (simon et al., 2017). this rule stipulates that payments must be based on economic pricing when private facilities can cover expenditures that vary by location. figure 1 depicts the framework for the present study. h1: health budget allocation has an impact on the implementation of the health insurance policy. h2: drugs distribution policy has an impact on the implementation of the health insurance policy. h3: funds for health workers have an impact on the implementation of the health insurance policy. h4: public health attitude has an impact on the implementation of the health insurance policy. figure 1: research model 3. methodology this research is based on "quantitative data," as previous studies in this field also employed this methodology. this study used a "rating scale" questionnaire for data collection and analysis. in addition, jacobs et al. (2010) adapt the scale for variable health budget allocation to quantify its impact on health insurance policy directly. moreover, mcginty et al. (2020) have adapted the variable health budget allocation drugs distribution policy health insurance policy funds of health workers public health attitude agbioforum, 24(2), 2022 | 199 haryono, sadiq, hakim and hanafi. — implementation of national health insurance policy through the social security … pharmaceuticals distribution policy scale to measure its impact on health insurance policy directly. similarly, mullei et al. (2010) modified the ranking for the variable finances of health workers to examine its direct effect on health insurance policy. in addition, zanolin et al. (2007) updated the scale for the variable public health attitude to examine its direct impact on health insurance policy. finally, osungbade et al. (2014) are the source for the health insurance policy scale. these materials were sent to several university professors for "face validity." the government officials of the nhi department are the subjects of this study, which utilized a random sample technique to collect data. this research employs a "crosssectional" methodology and collects data within a fixed time frame. in this study, the "unit of analysis" is the individual. this study's "sample size" is based on 399 responses gathered via "survey." in addition, "structural equation modeling" was employed for data analysis and findings of each hypothesis in this research. 1. findings and data analysis this study's data analysis was conducted using "pls bootstrapping" and "pls algorithm" computations. for validity and reliability, the research relied on "cronbach's alpha ()," "composite reliability (cr)," and "average variance extracted (ave)." shevlin et al. (1998) note, "factor loading indicates how well an item represents the underlying construct, and it must be greater than 0.70." tavakol et al. (2011) noted, "cronbach's alpha ( > 0.70) is a measure of internal consistency, that is, the degree to which a group of items is connected. it is considered a measure of the trustworthiness of scales." composite reliability (cr > 0.70) is a measure of internal consistency in scale items, similar to cronbach's alpha, according to raykov (1997). alarcón et al. (2015) noted, "average variance extracted (ave > 0.50) is a measure of the amount of variance captured by a measurement error variance construct." the significant "measurement model" results are shown in table 1 and figure 2. figure 2. reliability and validity according to alarcón et al. (2015), "discriminant validity tests whether concepts or measurements that are not intended to be related are unrelated." according to ab hamid et al. (2017), "cross-loading to establish discriminant validity at the item level means there is a high correlation between items of the same construct and a very weak correlation between items of different constructs." according to ab hamid et al. (2017), htmt is a measure of the similarity between latent variables. according to gold et al. (2001), "the htmt threshold is debatable; the majority of publications recommend a value below 0.90." cross-loadings' important values are shown in table 2, and that values are presented in table 3. 0 0.2 0.4 0.6 0.8 1 1.2 d d p 1 d d p 2 d d p 3 d d p 4 d d p 5 fh w 1 fh w 2 fh w 3 fh w 4 fh w 5 h b a 1 h b a 2 h b a 3 h b a 4 h b a 5 h b a 6 h ip 1 h ip 2 h ip 3 h ip 4 h ip 5 h ip 6 h ip 7 p h a 1 p h a 2 p h a 3 p h a 4 p h a 5 drugs distribution policy funds of health workers health budget allocation health insurance policy public health attitude reliability and validity factor loadings cronbach' alpha cr ave agbioforum, 24(2), 2022 | 200 haryono, sadiq, hakim and hanafi. — implementation of national health insurance policy through the social security … table 1. convergent validity constructs items factor loadings cronbach' alpha cr ave drugs distribution policy ddp1 0.888 0.947 0.959 0.826 ddp2 0.891 ddp3 0.903 ddp4 0.935 ddp5 0.926 funds of health workers fhw1 0.888 0.940 0.954 0.807 fhw2 0.907 fhw3 0.904 fhw4 0.902 fhw5 0.892 health budget allocation hba1 0.896 0.951 0.961 0.804 hba2 0.902 hba3 0.900 hba4 0.882 hba5 0.894 hba6 0.906 health insurance policy hip1 0.905 0.955 0.963 0.789 hip2 0.923 hip3 0.914 hip4 0.870 hip5 0.878 hip6 0.860 hip7 0.865 public health attitude pha1 0.694 0.911 0.935 0.743 pha2 0.878 pha3 0.912 pha4 0.903 pha5 0.904 table 2. cross loadings drugs distribution policy funds of health workers health budget allocation health insurance policy public health attitude ddp1 0.888 0.815 0.865 0.605 0.665 ddp2 0.891 0.852 0.849 0.563 0.624 ddp3 0.903 0.884 0.847 0.608 0.652 ddp4 0.935 0.872 0.871 0.601 0.648 ddp5 0.926 0.856 0.844 0.613 0.655 fhw1 0.810 0.888 0.819 0.591 0.637 fhw2 0.850 0.907 0.820 0.547 0.599 fhw3 0.837 0.904 0.813 0.536 0.601 fhw4 0.890 0.902 0.862 0.604 0.646 fhw5 0.841 0.892 0.826 0.596 0.672 hba1 0.831 0.835 0.896 0.692 0.728 hba2 0.840 0.826 0.902 0.591 0.638 hba3 0.840 0.835 0.900 0.593 0.636 hba4 0.839 0.817 0.882 0.655 0.691 hba5 0.847 0.831 0.894 0.638 0.693 hba6 0.866 0.819 0.906 0.641 0.672 hip1 0.632 0.607 0.659 0.905 0.828 hip2 0.594 0.578 0.644 0.923 0.846 hip3 0.628 0.595 0.687 0.914 0.860 hip4 0.586 0.577 0.647 0.870 0.831 hip5 0.551 0.540 0.583 0.878 0.809 hip6 0.531 0.518 0.564 0.860 0.788 hip7 0.567 0.570 0.626 0.865 0.818 pha1 0.669 0.606 0.611 0.590 0.694 pha2 0.579 0.557 0.608 0.821 0.878 pha3 0.615 0.603 0.659 0.844 0.912 pha4 0.573 0.568 0.622 0.851 0.903 pha5 0.585 0.563 0.630 0.867 0.904 table 3. htmt drugs distribution policy funds of health workers health budget allocation health insurance policy public health attitude drugs distribution policy funds of health workers 0.887 health budget allocation 0.863 0.768 health insurance policy 0.691 0.675 0.742 public health attitude 0.792 0.784 0.771 0.791 agbioforum, 24(2), 2022 | 201 haryono, sadiq, hakim and hanafi. — implementation of national health insurance policy through the social security … the results of the "structural model" are utilized to path the outcomes "t > 1.96 and p< 0.05." this study determined that health budget allocation positively influences the execution of health policy, thereby confirming the first hypothesis. the current study found that drug distribution policy favorably influences the implementation of health policy, supporting the second hypothesis. thirdly, a recent study determined that the funding of health workers has a favorable effect on the implementation of health policy, supporting the third hypothesis. the current research has determined that public health attitudes positively influence the execution of health policy, and the fourth hypothesis is also significant. the outcomes of important hypotheses are provided in table 4. figure 3. structural model table 4. path results original sample standard deviation t statistics p values health budget allocation -> health insurance policy 0.158 0.078 2.015 0.044 drugs distribution policy -> health insurance policy 0.441 0.060 7.351 0.000 funds of health workers -> health insurance policy 0.113 0.028 4.035 0.000 public health attitude -> health insurance policy 0.920 0.029 32.066 0.000 4. discussion the pandemic in numerous countries has forced the global economy into a recession that cannot be avoided. according to the world bank, the impact of the covid-19 pandemic will cause 92% of countries to enter a recession. according to the world bank's world economic prospects study, the global economy will contract by 5.2% this year due to the covid-19 epidemic (laksono et al., 2021; muhlis, 2022; muttaqien et al., 2021). the worldwide recession was the worst since the second world war, and the state of indonesia, a country also afflicted by the covid-19 outbreak, is undergoing a severe slump. "the compatibility between theory and policy implementation requires a strategy to develop a strategy via a professional grand design or map, increased coordination between the central and regional governments, and the establishment of appropriate economic policies, including budget allocations and priorities" (osungbade et al., 2014). establishing "laws and regulations as the basis of authority and a strong legal umbrella for the government of indonesia" is one of the government of indonesia's efforts to maintain the stability of its financial and economic sectors, as well as the security and safety of its citizens. moreover, "the government's strategic response to abnormal situations is exceptional, with public health and safety receiving budgetary priority" (barua et al., 2020; laksono et al., 2021; nasution et al., 2020a). the implementation of government-implemented programs in the health sector is examined in depth. the budget allocation for health care is approximately 87.73% or a total of 65.8 trillion rupiahs for health care spending, which includes "medical devices, reagents, ventilators, agbioforum, 24(2), 2022 | 202 haryono, sadiq, hakim and hanafi. — implementation of national health insurance policy through the social security … hand sanitizers, and health facilities and infrastructure, including upgrading 132 houses referral hospital for handling covid-19 patients," including the largest hospital in jakarta. 7.8 percent of the health staff budget, or 5.9 trillion rupiahs, is allocated to incentives for central and local media personnel: regional medical staff totaling rp4.6 trillion and central medical personnel amounting to rp1.3 trillion; incentives for physicians, general practitioners, nurses, and other health professionals. contribution subsidies for tariff adjustments for nonwage recipients and non-employees following presidential regulation no. 75 of 2019 get a budget allocation of 3% or a total of 3 trillion rupiahs. in addition, the government provides a centralized budget for the expense of treating covid-19 patients, which the "ministry of health administers." the government is responsible for all maintenance costs according to regular handling fees. standard treatment costs encompass a whole package, from physician fees to repatriating the patient's remains in the event of death. the funding for covid-19 patients comes from the state and regional budgets for 2020. the government also provides tax incentives for commodities and services required to combat the covid19 epidemic. in general, many nations, notably south africa and nigeria, have made modifications and revisions to budget allocations to combat the covid-19 pandemic as a rapid governmental response to preserve public safety by suspending budgetary policy (laksono et al., 2021; muhlis, 2022; sari et al., 2019). when reviewing budget allocations during the covid-19 pandemic, it is essential to have a thorough grasp of the political and economic backdrop elements in allocating health insurance for all communities, which must be considered when increasing the national level. while technical considerations take a back seat to political priorities in building a structure for national health care, they must be addressed to achieve sustainable uhc in indonesia in the future (budiono et al., 2020; li et al., 2012; suparmi et al., 2019). it was thought important to survey the central and regional governments to acquire an accurate picture of "the effectiveness of the implementation of health regulations in the regions." (aizawa, 2019; anggriani et al., 2020; simon et al., 2017). according to laksono et al. (2023), "the role of the state in meeting the people's basic needs is extremely important, particularly in the form of comprehensive health services, because health is one of the human rights." article 34 of the constitution of 1945 declares that "the state shall establish a social security system for all citizens and empower the weak and incompetent with human dignity." in this context, "the state plays a role in improving the welfare of the people in the health sector by developing a social security system for the welfare of all people and increasing nhi premiums for participants, which are deemed unfeasible and burdensome to the community, particularly the poor who are currently affected by the covid-19 pandemic" (dartanto, halimatussadiah, et al., 2020; muttaqien et al., 2021). mandatory health insurance coverage extends to the whole population of indonesia, including foreign residents who have resided in the country for more than six months. participants in the nhi are required to pay a predetermined amount, while the government must cover the cost for the impoverished and those who cannot afford to pay payments. the presidential regulation significantly impacts a person's ability to pay dues, hence affecting the viability of other programs (laksono et al., 2023; moeloek, 2017; yuniarti et al., 2019). indonesia still has opportunities to establish a fair and equitable health financing system that guarantees the poor are financially protected, despite the slowing progress of the overall health financing system from 2015-2019. (anggriani et al., 2020; barua et al., 2020; erlangga et al., 2019). when the covid-19 pandemic has shifted towards endemic, indonesia must reflect on its existing payment system and move towards a more sustainable payment mechanism by integrating covid-19 payments into the current national health insurance to make package payments more sustainable. this can be accomplished by formulating a comprehensive compensation package for covid-19 (aizawa, 2019; budiono et al., 2020; simon et al., 2017), including care services (budiono et al., 2020; li et al., 2012; suparmi et al., 2019). the role of nhi with the healthy indonesia card has contributed to boosting health insurance coverage for all of the poor, notwithstanding its impact on increasing government spending such that uhc aspirations can be met in 2024, as opposed to the 2030 sdgs target (muhlis, 2022; sari et al., 2019). indeed, efforts must be made to increase the coverage of the health insurance contribution assistance (pbi-jk), which decreased in november and december 2021, by expanding health insurance coverage for all, utilizing informal figures through the word-of-mouth effect, and engaging influential community leaders in the region (barua et al., 2020). high-quality health care in hospitals and health centers is a significant factor in expanding coverage, as it encourages individuals to obtain national health insurance. in addition, the availability of health workers at the public health center and physicians will influence the community's participation in health insurance, as there are primary health facilities in every subdistrict of indonesia (dartanto, halimatussadiah, et al., 2020). because they are frequently exposed to individuals afflicted with covid-19, frontline healthcare staff who interact directly with covid-19 patients face grave occupational health risks. given the difficulty of the task and the high contagiousness of covid-19, healthcare professionals cannot avoid the risk of exposure. during the pandemic, thousands of frontline healthcare workers have been infected with covid-19. even the number of healthcare personnel killed by covid-19 has reached hundreds. when the incidence rate of the covid-19 pandemic case in 2019-2020 reached 95.65%, the allotment of funds for health professionals rose. inadequately designed agbioforum, 24(2), 2022 | 203 haryono, sadiq, hakim and hanafi. — implementation of national health insurance policy through the social security … incentives might hinder an organization's ability to accomplish its objectives. to ensure that covid-19 health personnel have a positive work attitude and work ethic when providing services, the number of incentives offered and their implementation must be meticulously designed. the incentive system must be built on the principles of fairness and suitability because it can boost employee happiness and excitement for their work (banerjee et al., 2019; nasution et al., 2020a, 2020b). the government policy "presidential decree no. 11 of 2020 concerning the establishment of a covid-2019 public health emergency" and "presidential decree no. 12 of 2020 concerning the determination of non-natural disasters spreading covid19 as a national disaster" establish an emergency "due to the covid-19 pandemic." the government also utilizes its constitutional authority when a presidential decree is issued. regarding the state financial policy and financial system for handling the pandemic, the government has made "article 22 of the 1945 constitution the basis for issuing government regulation rather than law number 1 of 2020." the implementation of national health insurance policies during the covid-19 pandemic must be based on the role of the state in meeting the safety and basic needs of the people in the form of comprehensive health services, given that health as a human right is mandated by article 34 of the 1945 constitution, which states that "the state develops a social security system for all the people and empowers the weak and disadvantaged by human dignity." 5. theoretical and practical implications theoretically, this study significantly contributes to knowledge because the newly established associations have enriched the existing literature on nhi. in this approach, our study contributed to the literature by demonstrating that health budget allocation positively affects the implementation of health policy, hence advancing understanding of health policy implementation. secondly, the current research contributes to the literature showing drug distribution policy favorably influences the execution of health policy, thereby expanding the knowledge of health policy implementation. thirdly, this analysis contributed to the literature by demonstrating that finances for health workers have a favorable effect on the implementation of health policy, enhancing our understanding of the implementation of health policy. lastly, the current research contributes to the literature showing public health attitudes favorably influence the implementation of health policy, which is in addition to the understanding of health policy implementation. this study concluded that the current covid 19 pandemic would diminish the macroeconomic level, impact lowincome people, reduce the ability to pay contributions, and result in arrears contributions, necessitating a selected policy for determining the nhi recipient program. second, the research indicated that limiting the risk of supporting beneficiaries of health insurance contribution aid to the state's financial capability is crucial owing to the state budget's heavyweight during the pandemic to avert a deficit in the national budget. thirdly, the indonesian government must strengthen coordination and communication between all central and regional parties to oversee policy execution. in addition, the government must expand the role and responsibilities of the ministry of health so that it can handle covid-19 more effectively and systematically by prioritizing an integrated and comprehensive public health approach to measure public health resilience. lastly, the government must implement comprehensive reforms to the national health system and ensure indonesia's readiness to face the threat of a pandemic and other health emergencies by bolstering the healthy paradigm through policy influence and public awareness of public health obligations and rights. 6. future directions during the covid-19 epidemic, the development of national health insurance policies must be founded on the state's responsibility to meet the people's safety and fundamental needs through comprehensive health care. the research is new to the academic literature, and its findings establish a novel relationship. the study has theoretical and practical implications for enhancing indonesia's health care. the recommended future directions for this research are reasonable for contributing significantly to future research. however, proposals for additional research are analyzing the social security administration's policy implementation of the nhi. future research could examine the moderating effect of budgetary transparency on implementing nhi in indonesia. future research may also investigate the mediating effect of government oversight on the distribution of health budget funds and the implementation of nhi in indonesia. in addition, future research may examine the moderating effect of health budget donations on health budget allocation and the implementation of nhi in indonesia. similarly, future research may examine the direct connection between transparency, emergency health insurance, and health services and the implementation of nhi in indonesia. references ab hamid, m., sami, w., & sidek, m. m. 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https://doi.org/10.1186/s40545-019-0170-5 https://doi.org/10.1186/s40545-019-0170-5 https://doi.org/10.1016/j.jpainsymman.2006.09.032 https://doi.org/10.1016/j.jpainsymman.2006.09.032 agbioforum, 24(3): 25-33. ©2022 agbioforum green business strategy: optimization of green products towards export opportunities of smes products robetmi jumpakita pinem department of business administration, faculty of social and political sciences, universitas diponegoro email: robetmi@lecturer.undip.ac.id sari listyorini department of business administration, faculty of social and political sciences, universitas diponegoro email: sarilistyorini@lecturer.undip.ac.id performance is essential for small and medium-sized enterprises (smes) to survive in the current competitive environment. determining the relationship between green product distinctiveness, environmental orientation (eo), green business strategy (gbs), green product innovation (gpi), and financial performance (fp) was the objective of this study. the surveybased data was acquired from employees of indonesian smbs. this study employed a quantitative research methodology. the study's questionnaire was constructed using a 5-point likert scale. in this study, the usable response rate was 69.88%. this study employed a structural equation modeling (sem) strategy using pls to analyze the study's data. a green business strategy, environmental focus, and product differentiation were found to have a positive and statistically significant effect on green innovation. additionally, green innovation has a good impact on economic success. in addition, the results confirmed the mediating role of green product innovation. these findings will aid policymakers and academics in their future research endeavors. key words: green product, business strategy, green innovation, financial performance, indonesia 1. introduction growth is one of the organization's primary objectives. this can be accomplished by putting faith in stakeholders, such as society. consequently, if an organization's activities inspire confidence, it can establish and maintain positive relationships with its stakeholders. as a result, the organization's financial performance will be enhanced. in the current era of globalization, emphasis on economic performance is crucial due to the escalating competitiveness in every industry. several businesses are working on incorporating innovation into their operations to enhance their performance. if they improve their performance, they will also be able to compete with other firms. organizations can reorganize and change their external and internal business activities. it is essential to highlight that firms can modify their external business activity faster than their internal business activities. the primary motivation for shifting external activities is to better the organization's posture and to survive in an environment of high competition. additionally, firms can prevent excessive market rivalry, bring diversification, increase the speed of new product development, decrease the risks associated with new product development, lower operating costs, and strengthen their market standing. in contrast, this can also improve operational synergy. thus, external modification of the organization's operations can boost the firm's profitability; consequently, the organization's performance will be enhanced (cho et al., 2019). customers and other stakeholders are becoming more aware of environmental issues as time passes, increasing the environmental pressure on firms. they are aware of and comprehend the significance of the environment to their families and civilizations. therefore, businesses need to keep their services and goods environmentally sustainable. on the other side, the firms' production processes must also be environmentally responsible. the organizations' management perspective is switched from cost to profit center to meet environmental protection regulations. on the other hand, many firms are considering adopting the strategy of green innovation to reduce the environmental impact of their operations. experts have proposed that innovation is essential for gaining a competitive edge in this context. it is also an efficient means of dealing with uncertainty. organizations must enhance their approach to green innovation because they face various stakeholders' demands (rui et al., 2021). consequently, enterprises must concentrate on the variables that can foster green innovation within the organization. companies must discover the variables that can aid in the resolution of environmental issues. these must be expressed in a mission statement for the organization with two orientations, namely external environmental orientation, and internal environmental orientation. internal environmental orientation focuses on the organization's interior characteristics, including internal standards, principles, and initiatives to demonstrate environmental commitment. on the other hand, the external orientation of the environment refers to the organization's attitude that might influence its relationships with the external community, government, suppliers, and other stakeholders. a lot of earlier research emphasizes the significance of environmental orientation. according to this research, green innovation and similar activities will favor organizational performance (dickel et al., 2018). mailto:robetmi@lecturer.undip.ac.id mailto:sarilistyorini@lecturer.undip.ac.id agbioforum, 24(3), 2022 | 26 pinem and listyorini. — green business strategy: optimization of green products towards export opportunities… to address environmental challenges, organizations must develop "going green" policies. since the previous two decades, enterprises have focused more on green practices and acquiring green capabilities. to promote green innovations within the firm, crucial business antecedents and drivers must be adopted. it comprises environmental factors of green practices, organizational determinants, technology determinants, government restrictions, supplier capabilities, business owner preferences, and customer concerns. although many studies have examined the influence of factors influencing green behaviors, very few have examined the impact of green innovation drivers (baeshen et al., 2021). several different stakeholders over the actions of the organizations as a result of the globalization debate have expressed concerns about the environment. consequently, many organizations have integrated environmental initiatives into their plans and strategies. therefore, it is necessary to investigate consumers' demand for green products. the adoption of green innovation affects the performance of firms in terms of conventional business practices. if firms embrace green product practices, they will save money on water management, energy consumption, and material consumption. as a result, the cost of capital assets, government fines, litigation costs, and labor input will decrease. on the other side, organizations' revenue streams will also rise (katsikeas et al., 2016). enterprises will establish additional revenue sources by embracing green practices and innovation methods. if enterprises increase their revenue streams, they can enter new markets and differentiate their products from the competition. these firms will also be able to boost their financial performance and sales (dangelico et al., 2015). in the age of globalization, these environmental measures are crucial for the survival of organizations. most businesses are eager to adopt new technologies to dominate their respective industries. consequently, corporations have switched from a conventional to a green approach. they have adopted strategies including green competency and green business strategy. by implementing these green business methods, organizations can achieve green innovation within their enterprise (alraja et al., 2022). consequently, commercial companies are increasingly concerned about the environment in the modern day. due to global warming and other environmental challenges, manufacturers and small business organizations continue to find green environment research intriguing. organizations can acquire a competitive edge by embracing green innovation techniques. organizational initiatives to manage environmental challenges are essential to achieving performance goals based on environmental sustainability (siswoyo et al., 2020). the success of small and medium-sized enterprises (smes) in indonesia is significantly influenced by human resources/sme actors' use of environmental issues as weapons to take a portion of the existing market share by harmonizing issues that are beginning to trend toward green industry. a successful product can deliver perceived benefits to consumers. therefore, corporate actors must examine product quality based on consumer demands and aspirations, which are already beginning to lead to environmentally friendly products. customers anticipate products that meet the green requirements to be more lasting and sustainable, which are in high demand (soetjipto, 2019). the industrial sector dominates business actors in indonesia, particularly those incorporated in small and medium enterprises (smes), which have been operating for at least 50 (fifty) years. it has been proven that smes play a role and contribute to absorbing the largest number of workers, which is 91.8 million workers or 97.3%. 53.6% of the gross domestic product (gdp) was contributed by small and medium-sized enterprises (smes). the investment value is substantial, amounting to idr 462.01 trillion (or 46.2%). in addition to having a non-oil and gas export performance of rp. 142.8 trillion (20%) and the ability to endure the current economic crisis, indonesia has a non-oil and gas export performance of rp (taneo, noya, melany, & setiyati, 2022). consequently, this study aims to examine the relationship between green product distinctiveness, environmental orientation, green business strategy, green product innovation, and financial success among indonesia's smes. 2. literature review 2.1 financial performance financial performance is an organization's financial performance over a specific time. it encompasses allocating and gathering financial metrics, including capital profitability, leverage, efficiency, solvency, liquidity, and sufficiency. financial performance is an organization's capacity to manage and govern its resources. capital change, profit/loss, balance sheet, cash flow, and npv/irr comprise the actual financial performance (fatihudin, 2018). the financial performance of an organization displays its financial health over a specific period. it consists of using and collecting funds through various profitability, solvency, leverage, liquidity, and sufficiency ratio indicators. in addition, financial success represents an organization's control and management of tangible and intangible assets. a company's financial statement describes the financial records, including capital change, profit-loss, balance sheets, and cash flows, which assist corporate management in making crucial financial choices. an organization's financial statements include retained profits, cash flows, profit/loss computation, and a balance sheet that reflects the economic conditions (didin, 2017). 2.2 green innovation various terms, including environmental innovation, sustainable innovation, eco-innovation, and many more, have been employed in the literature to describe green agbioforum, 24(3), 2022 | 27 pinem and listyorini. — green business strategy: optimization of green products towards export opportunities… innovation. therefore, it is challenging to envision green innovation. researchers analyzed the various definitions of green innovation addressed in the academic literature and identified several shortcomings. despite these restrictions, the fundamental concept underlying the notion of green innovation remains the same: reducing pollution, conserving raw materials, and increasing resource efficiency (cai et al., 2018). scholars have characterized green innovation as "organizational implementations and changes focusing on the environment, with implications for firms' products, manufacturing processes, and marketing" innovation is a multifaceted process involving innovative actions, creation and patenting of innovation, research, and research and development. the green patent is one of the most significant outcomes of green innovation. it is crucial and essential to produce various outputs, such as r&d investments and human resources. by increasing r&d spending by 1%, the patenting of green innovations grew by more than 1.30 percent, according to academic research (de azevedo rezende et al., 2019). researchers have identified two categories of green innovation. the first category of green innovation has been identified as organizational capabilities. the second form of green innovation defines this concept as organizational environmental practices. green innovation is described in terms of organizational practices as software or hardware innovation in green processes or goods. according to researchers' findings, green innovation is contingent on new administrative practices or technical advancements that enhance the company's operation. it also affects the organization's competitive edge. on the other hand, experts assert that green innovation is founded on various new or changed variables. these elements include products, systems, practices, and activities that benefit society and the environment and contribute to environmental sustainability. researchers have therefore characterized green innovation as modified or new processes and products that incorporate organizational, managerial, and technological innovation. these variables contribute to the environment's increased longevity (wang et al., 2021). moreover, since stakeholders' environmental concerns continue to grow, environment management has become an integral component of strategic organizational planning. the environmental rules of organizations tend to generate a win-win situation in which both the organization's profit and pollution are decreased. it argues that firms should approach green innovation differently and not blend it with other innovation strategies. it will favor the organization's environmental development initiatives (zheng et al., 2022). according to the literature, there are two ways to measure an organization's performance: non-financial performance and financial performance. in terms of financial performance, the organization's environmental costs are offset by increased green innovation production. in addition to expanding their market shares, firms can also access new markets by implementing environmentally responsible practices. the organization's long-term mission is to improve both financial and non-financial performance. the non-financial performance of the business can be enhanced by strengthening the firm's reputation, image, client acquisition, and customer retention. the "first mover advantage" is a term used by academics to describe the competitive advantage enjoyed by firms that adopt green innovation as pioneers. in other words, they will be able to establish a competitive advantage, new market opportunities, an enhanced corporate image, and higher product prices (khan et al., 2022). consequently, the firms' financial indicators will be positively affected. organizations that use green innovation techniques have greater profit retention, return on assets, and equity than their rivals (przychodzen et al., 2015). through both product and process innovation, businesses increase their financial performance. similarly, the return on equity of the organizations is positively impacted by the development of green products, demonstrating that green initiatives increase the company's value and benefit its profitability (weng et al., 2015). 2.3 green business strategy literature defines green business strategy (gbs) as a considerable and robust organizational propensity to include environmental concerns in the business plans of all organizational departments. organizations that engage in environmentally responsible practices generate a variety of opportunities. as a result, enterprises receive various benefits and satisfy numerous stakeholders' needs. several studies have demonstrated that green business methods boost firms' earnings and performance (yousaf et al., 2021). multiple levels of advocacy for environmental protection. numerous production aspects have an impact on the environment, particularly materials. the operational principles focus on the actual, day-to-day aspects of running a sustainable business, whilst the strategic principles are utilized largely to determine the business direction (soderholm, 2020). in addition, the literature indicates that firms can improve their performance by adopting green business methods. as a result of the company's efforts to preserve the environment in worldwide and domestic markets through green business strategies, regulatory pressure and stakeholder demand on the organization's product developer have also increased. scholars have suggested that managerial perspectives on green business strategies have evolved. before many decades, a green business strategy was considered a reactive or proactive approach to the organization. later firms understood that developing and adopting a green business strategy would impact organizational innovation. green business methods enable organizations to obtain innovative green services and agbioforum, 24(3), 2022 | 28 pinem and listyorini. — green business strategy: optimization of green products towards export opportunities… goods (yahya et al., 2022). the promotion of organizations is the result of a green business strategy. organizations must remember that their green business strategy must match their green innovation strategies. based on the above research, it can be concluded that a green business strategy has the potential to influence green innovation (tariq et al., 2019). 2.4 environmental orientation (eo) the environment is deteriorating as a result of fast economic and industrial expansion. several nations are establishing green legislation to minimize carbon emissions and conserve energy. restrictions on chlorofluorocarbons and the use of dangerous compounds are examples of environmental legislation. these limits have successfully raised people's awareness of environmental issues and altered the organization's management practices, allowing it to implement environmentally friendly procedures. by implementing these strategies, firms can enhance their environmental branding and reputation. it will eventually improve competitive advantage and performance (keszey, 2020). today, numerous parties in different world regions are concerned about various environmental degradation issues. a manager's policies will reflect a greater concern for the environment if he has a deeper grasp or greater knowledge. understanding environmental issues are crucial for business actors that wish to pay more attention to the environment when conducting their operations. environmentally conscious businesses positively impact company performance (bu et al., 2020). the organization's environmental orientation is seen as both internal and external environmental orientation. the company's internal orientation is essential to its proenvironmental atmosphere and culture. the organizational environment and culture can be considered vital resource that aids in gaining a sustained competitive advantage. according to scholars, organizational climate and culture have a crucial influence in determining a business's strategic vision. as a result, employees are inspired to embrace environmentally friendly practices, which may lead to green innovation in the future. researchers also believe that environmental orientation influences all organizational stakeholders' adoption of green innovation. a green environmental approach is more likely to have a favorable effect on the green innovation activities of the firm (feng et al., 2018). 2.5 green product differentiation (gpd) green items that include advancements to generate ecologically friendly products. in the past decade, environmentally friendly products have become essential issues. green innovation has the potential to improve company performance. when most of a company's output consists of environmentally friendly goods, the company has a beneficial impact (zehir et al., 2020). researchers have found that green products play a crucial impact in an organization's adoption of green innovation. in addition, researchers stated that distinction could be developed based on green innovation through green product learning, market, speed, processing, and qualitative techniques. additionally, researchers argued that green product differentiation has a considerable positive effect on green innovation in organizations. significant roles are played by green goods and green innovation in gaining a competitive advantage (maryati, 2019). based on the preceding discussion, the following hypotheses are developed. h1: eo positively affects gpi (green product innovation). h2: gbs has a positive effect on gpi. h3: gpd has a positive effect on gpi. h4: gpi has a positive effect on fp. h5: gpi mediates the relationship between eo and fp h6: gpi mediates the relationship between gpd and fp. h7: gpi mediates the relationship between gbs and fp. figure 1: theoretical framework 3. research methods this study employs a quantitative methodology by surveying central java's smes. the method of sampling adopted by the researcher was purposive sampling. this study's sample consisted of 275 respondents. using the purposive sampling approach, the researcher handdistributed the questionnaire to the management of smes. the researcher collected data from respondents via a questionnaire. the measuring scale of the survey is based on a 5-point likert scale. this scale consists of a series of questions for each variable under study. the questionnaire financial performance green business strategy innovation green product differentiation environmental orientation agbioforum, 24(3), 2022 | 29 pinem and listyorini. — green business strategy: optimization of green products towards export opportunities… items were derived from previous investigations. respondents submitted 192 valid surveys to researchers. the rate of usable responses was 69.8%. in the present study, the gathered data were evaluated using smart pls. the data's validity and reliability were evaluated using sem pls by applying convergent validity and composite reliability tests to the data collected from respondents. these tests are a component of the smart pls measuring paradigm. later, path analysis is utilized in the structural model to determine the impact of green business strategy, environmental orientation, green product differentiation, and green product innovation on export financial performance. 3.1 results smart pls 3.3.9 was utilized to collect results for the stated hypothesis. this study consists of two parts: the measurement model and the structural model. the measurement model analysis must precede the structural model analysis. the measurement analysis comprises analyses of convergent and discriminant validity. convergent validity determines the item level that accurately measures the study object. in this study employing a loading factor test, an item shows convergent validity if its loading factor value is more than 0.70. (hair et al., 2017). the results of this study's loading factor score are presented in table 1 and figure 1. table 1. factor loading eo fp gbs gpd gpi eo1 0.849 eo2 0.833 eo3 0.864 eo4 0.861 fp1 0.864 fp2 0.852 fp3 0.879 fp4 0.867 fp5 0.786 gbs1 0.816 gbs2 0.874 gbs3 0.847 gbs4 0.854 gbs5 0.858 gpd1 0.823 gpd2 0.717 gpd3 0.785 gpd4 0.736 gpi1 0.851 gpi2 0.845 gpi3 0.841 gpi4 0.869 gpi5 0.734 note: fp= financial performance, gpi= green product innovation, gpd= green product differentiation; eo= environmental orientation; gbs= green business strategy the loading factor value for each manifest variable is presented in table 1. if the cumulative loading factor value of all indicators on the latent variable is greater than 0.70, the indicator is considered legitimate and, therefore, acceptable. table 2 reliability cronbach's alpha cr ave eo 0.874 0.914 0.726 fp 0.904 0.929 0.723 gbs 0.904 0.929 0.722 gpd 0.765 0.850 0.588 gpi 0.886 0.916 0.688 note: fp= financial performance, gpi= green product innovation, gpd= green product differentiation; eo= environmental orientation; gbs= green business strategy note: fp= financial performance, gpi= green product innovation, gpd= green product differentiation, eo= environmental orientation, and gbs= green business strategies can be seen in the table above. all five latent variables have ave values greater than the intended value of 0.5. (fornell et al., 1981). consequently, all variables are acknowledged as valid when used to explain the latent variable, demonstrating that the usage of the manifest variable satisfies the ave requirements. therefore, it is asserted that all manifest variables satisfy the convergence validity criteria. if the scores provided by the instrument assessing the notion or by other means of measuring the concept exhibit a strong correlation, convergent validity is demonstrated to be valid. in addition, the data's dependability was evaluated at this step by calculating composite reliability and cronbach alpha. these numbers must exceed 0.70 (joseph et al., 2010). based on the figures in table 2, it is obvious that this criterion is met. discriminant validity is assessed using the fornell and larker method. fornell et al. (1981) evaluate matrix and cross-loading in this method. it displays the cross-loading factor with the construct and compares ave to the agbioforum, 24(3), 2022 | 30 pinem and listyorini. — green business strategy: optimization of green products towards export opportunities… correlation between latent variables. suppose the correlation between the construct and the primary measurement (each indicator) is stronger than the correlation between the construct and the other constructs. in that case, the variable is said to have high discriminant validity. the cross-loading values are listed in table 4, and the matrix of fornell and larker is shown in table 3. because the correlation cross-loading factor for each latent construct for the appropriate indicator is greater than for the other latent constructs, table 4 demonstrates that all indicators used to assess the latent variables meet the requirements. figure 2. measurement model table 3 fornell and larcker eo fp gbs gpd gpi eo 0.852 fp 0.599 0.850 gbs 0.555 0.596 0.850 gpd 0.397 0.498 0.440 0.767 gpi 0.655 0.786 0.614 0.486 0.829 note: fp= financial performance, gpi= green product innovation, gpd= green product differentiation; eo= environmental orientation; gbs= green business strategy table 4: cross loading eo fp gbs gpd gpi eo1 0.849 0.498 0.451 0.267 0.571 eo2 0.833 0.464 0.473 0.355 0.550 eo3 0.864 0.500 0.518 0.341 0.545 eo4 0.861 0.576 0.452 0.391 0.566 fp1 0.546 0.864 0.570 0.470 0.697 fp2 0.510 0.852 0.504 0.405 0.633 fp3 0.517 0.879 0.503 0.439 0.718 fp4 0.520 0.867 0.529 0.409 0.696 fp5 0.447 0.786 0.418 0.391 0.584 gbs1 0.424 0.428 0.816 0.354 0.487 gbs2 0.531 0.554 0.874 0.394 0.568 gbs3 0.445 0.505 0.847 0.362 0.500 gbs4 0.474 0.507 0.854 0.372 0.504 gbs5 0.479 0.532 0.858 0.384 0.542 gpd1 0.356 0.415 0.402 0.823 0.426 gpd2 0.251 0.342 0.300 0.717 0.351 gpd3 0.306 0.385 0.293 0.785 0.372 gpd4 0.298 0.383 0.346 0.736 0.332 gpi1 0.602 0.656 0.562 0.434 0.851 gpi2 0.564 0.654 0.530 0.459 0.845 gpi3 0.536 0.649 0.533 0.447 0.841 gpi4 0.560 0.695 0.529 0.380 0.869 gpi5 0.444 0.602 0.373 0.278 0.734 note: fp= financial performance, gpi= green product innovation, gpd= green product differentiation; eo= environmental orientation; gbs= green business strategy agbioforum, 24(3), 2022 | 31 pinem and listyorini. — green business strategy: optimization of green products towards export opportunities… table 3 shows that the root value of each variable is greater than the correlation, indicating that the model has acceptable discriminant validity. thus, the study's measuring model is attained. the study's structural model is then evaluated. the measurement of a structural model can be used to compare the effects of one latent variable to those of other latent variables. the test is conducted by assessing the path value's t value to determine whether the effect is statistically significant (the t value can be obtained by bootstrapping). the graphic below illustrates the results of the bootstrapping performed throughout this experiment. figure 3. full structural model (bootstrapping) note: fp= financial performance, gpi= green product innovation, gpd= green product differentiation; eo= environmental orientation; gbs= green business strategy path coefficient values are used to test the hypothesis, while t values are used to assess whether there is a significant effect. in addition, the path significance test results provide the parameter coefficient values (original sample). the parameter represents the significance level of each study variable's influence. according to indrawati (2015), business studies frequently employ a confidence level of 95%. hence the researchers adopted this confidence level for this investigation. if the t-statistic for the one-tailed hypothesis is greater than 1.65, the path coefficient score can be indicated. the study's direct and indirect outcomes are listed in tables 5 and 6. table 5: direct results beta sd t value p values h1 eo -> gpi 0.413 0.059 6.952 0.000 h2 gbs -> gpi 0.301 0.064 4.713 0.000 h3 gpd -> gpi 0.189 0.057 3.305 0.001 h4 gpi -> fp 0.786 0.025 31.087 0.000 note: fp= financial performance, gpi= green product innovation, gpd= green product differentiation; eo= environmental orientation; gbs= green business strategy the direct results imply that h1 of the study is supported, as beta=0.413 and t=6.952 indicate that eo has a significant positive effect on gpi. in addition, the statistical results suggest that gbs and gpi have a significant positive connection with t = 4.71 and beta = 0.301, which supports hypothesis 2. in addition, gpd has a favorable effect on gpi, as indicated by beta= 0.189 and t=3.305. consequently, the h3 of the study is also supported. additionally, gpi and fp have a positive connection with beta = 0.786 and t = 31.087, supporting hypothesis 4. table 6 are listed the indirect outcomes of the investigation. these findings indicate that gpi mediates the connection between eo and fp in support of hypothesis 5. gpi also mediates the link between gpd and fp by accepting h6. in conclusion, the h7 of the study is validated as well, demonstrating that gpi mediates the link between gbs and fp. table 6: mediation results beta sd t value p values h5 eo -> gpi -> fp 0.324 0.049 6.617 0.000 h6 gpd -> gpi -> fp 0.149 0.045 3.280 0.001 h7 gbs -> gpi -> fp 0.237 0.051 4.689 0.000 note: fp= financial performance, gpi= green product innovation, gpd= green product differentiation; eo= environmental orientation; gbs= green business strategy agbioforum, 24(3), 2022 | 32 pinem and listyorini. — green business strategy: optimization of green products towards export opportunities… the r-square value can display the effect of the dependent variable. the following is the acquisition of the r-square value. table 7. r square r square fp 0.617 gpi 0.547 note: fp= financial performance, gpi= green product innovation, in table 7, the coefficient of determination for the export financial performance is 0.617, indicating that the green business strategy, environmental orientation, green innovation, and green product differentiation explain approximately 61.7% of the export financial performance. in comparison, green product innovation explains approximately 54.1%. 4. discussion and conclusion every organization's primary purpose is to enhance its financial performance. alternatively, stakeholders of all types of organizations are more aware of environmental challenges. therefore, businesses, especially smes in indonesia, must identify the variables that might contribute to the innovation of green products and improve their financial performance. this study concluded that green product innovation is essential to the organization's financial performance. this is because businesses can keep their current clients and attract new ones. these results are consistent with those of (weng et al., 2015). on the other hand, the results indicate that the organization's environmental orientation is essential for smes' green innovation initiatives. these results are identical to those of feng et al. (2018). furthermore, data indicate that a green company strategy plays a crucial role in adopting green innovation, as stated by (yahya et al., 2022). green product differentiation also plays a vital part in the organization's adoption of green innovation (maryati, 2019). therefore, corporate actors must modify their products to be more environmentally conscious. not only do the resulting items provide profit or economic worth, but they also safeguard the environment and assist in growing earnings. 5. future research and limitations in this study, the r square value for gpi and fp is 54.7% and 61.0%, respectively. as a result, future research can concentrate on variables other than green business strategy, environmental orientation, and green product differentiation as variables that can affect export financial success. the proposed model was evaluated using structural equation modelling with pls in this work. future research may use more technologies in addition to amos. this research is carried out in indonesia. this approach can be applied to different geographic regions in future research. these findings are useful for academics and policymakers. references alraja, m. n., imran, r., khashab, b. m., & shah, m. 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https://doi.org/10.3389/fpsyg.2020.553625 https://doi.org/10.3390/su7054997 https://doi.org/10.1007/s11356-021-18430-1 https://doi.org/10.3390/su13126592 https://doi.org/10.20525/ijrbs.v9i5.883 https://doi.org/10.3390/su142013258 agbioforum, 25(1): 140-153. ©2023 agbioforum moderating role of environmental governance policies in the relationship between attitude towards technology innovation and sustainability khaled mohammed ahmed alqasa assistant professor, department of management, college of business administration, king faisal university, al-ahsa 31982, saudi arabia. faculty of administrative sciences, university of aden. email: kalqasa@kfu.edu.sa (corresponding author) sobia talat national university of modern languages, aewan e iqbal, egerton road, lahore, pakistan. email: stalat@numl.edu.pk the present study strives to examine the influence of attitude towards technology innovation (atti) on environmental and social sustainability (sos) while considering the mediating role of digital entrepreneurship (die) and the moderating role of environmental government policies (engp). the researchers gathered data from employees working in automobile sectors of saudi arabia. a selfadministered survey instrument was distributed to the respondents using a convenient sampling technique. the study employed a quantitative research approach and utilised a cross-sectional research design. the collected data was subjected to analysis using structural equation modelling, specifically employing the amos software. the findings of the study suggest that individuals' attitudes towards technology have a significant and positive impact on both environmental and social sustainability (sos) as well as digital entrepreneurship (die). the decoupling of industrial emissions (die) exhibits a noteworthy and constructive impact on both environmental factors and the state of social-ecological systems (sos). the indirect mediating effect of digital innovation ecosystems (die) also serves as a significant mediator between individuals' attitudes towards technology innovation (atti) and their environmental and social outcomes (sos). environmental governance policies (engp) play a crucial role in moderating the relationship between technological innovation and environmental and social outcomes. numerous research studies have examined the intersection of technological innovation with other conceptual domains. however, as earlier scholars suggested, there hasn't been much research into how these two variables interact. the findings of this study demonstrate a significant association between the two variables under investigation. this study also aimed to examine the interrelationships between attitudes towards technological innovations, digital information ecosystems (die), and socioeconomic sustainability. previous research has predominantly examined the impact of government environmental policies on the interplay between individuals' perspectives on technological innovation, the environment, and social responsibility. however, this study has made a valuable contribution by investigating the moderating effect of this relationship. the research findings may also provide valuable insights for policy and investment entities seeking to allocate resources towards innovative initiatives aimed at enhancing sustainability. the present research is regarded as a pioneering study within the saudi arabian context, focusing on the influence of environmental governmental policies as a moderating factor and the mediating role of digital entrepreneurship. keywords: environmental governance, technology innovation, sustainability, digital information, introduction in the contemporary era of globalisation, research plays a crucial role in enhancing the sustainability of economies by promoting social inclusion and environmental preservation, which are key drivers of modern economics (justus & uma, 2016; vasilyeva, kuzmenko, bozhenko, & kolotilina, 2019). the achievement of economic development can be facilitated by the simultaneous pursuit of environmental sustainability (ens) and social equality. ens, or the environmental nexus system, provides pathways for achieving social equity, enhanced governance, economic progress, and environmental stewardship (justus & uma, 2016; vasilyeva, kuzmenko, bozhenko, & kolotilina, 2019). the concept of sustainable development encompasses the interconnected aspects of environmental, social, and economic stability (avotra et al., 2021; dar et al., 2022). the presence of limited resources, economic and social conflicts, and the pursuit of sustainable environmental goals can often pose challenges to developmental objectives. according to neo-classical growth theories, ensuring economic stability and reaping benefits for future generations are crucial factors in achieving sustainable development. the implementation of sustainable development policies has resulted in the advancement of technology in the broadcasting sector, thereby contributing to an increase in employment opportunities aimed at promoting sustainability performance (justus & uma, 2016; vasilyeva, kuzmenko, bozhenko, & kolotilina, 2019). therefore, the significance of ens has been steadily growing owing to its increasing importance. it serves as a catalyst for efficient utilisation of limited resources and mitigates environmental degradation. sustainable development has a significant influence on all living organisms, the natural environment, and environmental mailto:kalqasa@kfu.edu.sa agbioforum, 25(1), 2023 | 141 alqasa & talat — moderating role of environmental governance policies in the relationship between attitude towards….. resources. in the context of resource allocation, it is imperative to prioritise environmental stability in order to achieve desirable outcomes (vadivel et al., 2014). in order to adequately address the needs and concerns of future generations, it is imperative to take into account various factors, including the temporal dimension, moral and social systems, biophysical boundaries, human welfare, and technological uncertainties. according to scholarly literature, the preservation of the environment and the effective management of human resources are considered crucial prerequisites for achieving sustainable economic success (nawaz & tian, 2022). various factors, such as government policies, social inclusion, women's empowerment, wealth distribution, and inequality, have been found to significantly influence the economic and social development (ens) of multiple emerging nations (azhar, khalil, & ahmed, 2007). it is postulated that once individuals have satisfied their fundamental needs, they exhibit a propensity to conserve the ecosystem. therefore, under these circumstances, it is possible that natural resources have already been compromised. therefore, the imperative for environmental conservation is of utmost importance and urgency in developing nations (azhar, khalil, & ahmed, 2007). the deterioration of the environment poses a significant concern, as it adversely impacts global ecosystems and poses health risks to numerous nations. it is imperative to assign equal significance to the outcome. the phenomenon of social polarisation, the rapid proliferation of poverty, the prevalence of urban violence and conflict fanaticism, the occurrence of natural catastrophes, and the impact of climate change collectively contribute to the escalating levels of unpredictable disaster risk. the utilisation of the social context serves to contextualise the prevailing concerns of contemporary times. the aforementioned issues have implications for both planning and practice, necessitating a critical evaluation and modification of existing planning methodologies to effectively address this distressing social predicament (eizenberg & shilon, 2016; jabareen, 2015). the triad model is widely recommended as a framework for formulating sustainable development, as it recognises the essential interconnections between the ecological, social, and economic pillars. the advancement of these components in isolation has been notably advanced through the implementation of the three-pillar sustainability approach. previous literature has explored the connection between triadic components, but a comprehensive explanation and evaluation of this relationship is currently lacking. therefore, further investigation is warranted to gain a deeper understanding of this association (featherstone, 2013; hopwood, mellor, & o'brien, 2005). the acquisition of this understanding has had a significant impact on the sustainability of the dissertation. however, one aspect of social sustainability, namely the pillar of social sustainability (sos), lacks a consistent, definitive, and usable explanation at present (åhman, 2013). previous research on sos has demonstrated inconsistent and ambiguous findings within the realm of literature studies (axelsson et al., 2013). additionally, prior research has shown that the chosen indicators of state of security (sos) are more heavily influenced by current political agendas and pragmatic credibility considerations than they are by theoretical framework. novel concepts and technological advancements are continuously being introduced and adopted worldwide (featherstone, 2013; hopwood, mellor, & o'brien, 2005). various types of organisations, such as universities, research institutions, and business enterprises, engage in projects and research with unwavering and continuous dedication. as a result, a multitude of innovations are created across various levels of ingenuity, expertise, and novelty (soomro, mangi, & shah, 2021). certain activities have the potential to yield novel findings and discoveries, thereby contributing to the expansion of scientific knowledge and the advancement of technological innovations (nawaz et al., 2022). these accomplishments may elucidate economic expansion and its import for both developed and emerging nations. the adoption of emerging technologies serves as a distinguishing factor between adversaries and individuals from diverse backgrounds. businesses and enterprises may encounter challenges when it comes to embracing and adapting to swift changes that have the potential to impact their daily operations (dardak & adham, 2014; henriques & viseu, 2022). the adoption of unforeseen and innovative technologies has the potential to generate a sense of self-awareness within organisations, resulting in varied attitudes among employees (luo, olechowski, & magee, 2014). the differentiation of these activities has emphasised the crucial factors in the adoption of technological innovation, thereby aiding in the identification of key elements for effective adoption strategies. furthermore, within an enterprise, these attitudes give rise to diverse levels of technology suitability within the organisational context. hence, technological innovation (tei) is primarily associated with scientific knowledge and methodologies, focusing on the incorporation of supplementary features into preexisting products (cui, jiao, & jiao, 2016; edsand, 2019). in recent years, there has been a growing body of scientific research dedicated to the study of tei, primarily due to its significant implications for climate, economics, and society (huo et al., 2021; yingfei et al., 2022). enhanced productivity within an organisation's processes results in the achievement of efficient and effective production, thereby meeting the demands of well-established entities (oliveira & martins, 2011). the advancement of technological innovation has significantly enhanced the body of knowledge (choi, narasimhan, & kim, 2016). the expansion of the industry can be attributed to factors such as globalisation, increased competition, shorter product cycles, and enhanced marketing strategies. previous research has extensively examined the potential and challenges associated with the adoption of innovative technologies within businesses and enterprises. these factors have been systematically analysed and categorised into three distinct dimensions: (1) societal factors, (2) lifestyle fulfilment factors, and (3) community factors (pechancová et al., 2019). the agbioforum, 25(1), 2023 | 142 alqasa & talat — moderating role of environmental governance policies in the relationship between attitude towards….. outcomes afford businesses the opportunity to cultivate novel technologies for the purpose of enhancing management and operational procedures. despite the apparent value of technological innovations, numerous studies have indicated that they can lead to neglected development. these factors exert significant influence on the ecosystem, thereby giving rise to socioeconomic and environmental concerns. increased resource consumption has a detrimental impact on the environment. however, the scarcity of supplies has a detrimental impact on organisational performance, particularly in the process (da silva neiva et al., 2020; mansour & alsulamy, 2021). the loss of natural resources, the degradation of the environment, and the presence of pollutants have changed the path of technological, economic, and industrial (tei) progress, which has led to the development of sustainable alternatives (nawaz & tian, 2022). enterprises have a strong inclination towards the production and development of sustainable products and services in order to mitigate environmental degradation. the desire to satisfy the needs of discerning customers in the fiercely competitive global market is what motivates this strategic approach (desha, robinson, & sproul, 2015). the use of the total economic impact (tei) framework has a significant influence on the overall performance of the global vehicle and automotive parts manufacturing industry. this study opted to examine the independent relationship between these two factors (zahoor, donbesuur, nwoba, & khan, 2021). despite considerable focus on the influence of technologyenabled innovation (tei) in facilitating a sustainable society, existing literature on this subject exhibits numerous theoretical and practical constraints. previous researchers have devoted greater attention to theoretically weaker questions, that is, questions that possess less theoretical significance. instead of conducting a comprehensive examination of the impact of sustainable development, the researchers focused solely on analysing the individual effects of tei on each factor. consequently, there exists a notable disparity in the capacity of technological advancements to achieve both social and ecological sustainability within an integrated framework. the rationale for this is that only a limited number of developing and developed nations are actively engaged in the pursuit of technology-enhanced instruction (tei). many developing nations are encountering a multitude of obstacles in their efforts to embrace contemporary technologies and foster innovation. a significant independent relationship exists between tei and the presentation of vehicle and automotive parts manufacturing (zhou, xu, chen, & sun, 2022). however, there is still a gap in understanding the mediating linkages between these factors and the achievement of environmental and social sustainability in the context of vehicle and automotive parts manufacturing. digital entrepreneurship (die) serves as a platform for engaging in entrepreneurial endeavours. previous research has demonstrated that the dynamic innovation environment (die) plays a crucial role in facilitating the relationship with technological innovation (ti) in order to achieve sustainability. hence, in the current investigation, the dependent intervening effect (die) could potentially serve as a mediating variable. moreover, the existing literature on the association between attitude towards technology innovation (atti), environmental sustainability (ens), and social sustainability (sos) has yielded inconsistent results (kennedy & marting, 2016; mousavi, bossink, & van vliet, 2019; zhang, khan, lee, & salik, 2019). thus, it is imperative to allocate sufficient time for future research endeavours involving alternative associations. according to (baron & kenny, 1986), it has been posited that in cases where there are inconclusive findings regarding the relationship between exogenous and endogenous variables, the inclusion of a moderating variable becomes necessary in order to enhance said relationship. additional research has also suggested that the association between atti and the environment could be examined in conjunction with other moderating factors. hence, the utilisation of environmental government policies (engp) may serve as a moderating variable, as it has been observed that when government policies align with innovative practices, organisations experience enhanced sustainability from both environmental and social standpoints (chien et al., 2021; khan et al., 2020). the positive and significant impact of environmental government support on ens has been observed in previous studies (laurian, walker, & crawford, 2017). hence, drawing upon the preceding arguments, contemporary research has employed the engp as a moderating variable. hence, the present study aims to examine the influence of atti on the environment and sos while considering the mediating effect of die and the moderating effect of engp. the present study makes a valuable contribution to the existing body of research by examining and analysing findings from both theoretical and empirical perspectives. historically, numerous research studies have examined the intersection of technological innovation with various conceptual domains. however, as proposed by previous scholars, there has been a lack of investigation into the interaction between these two variables. the findings of this study demonstrate a significant association between the two variables under investigation. furthermore, the development of attitudes towards specific objects is influenced by attitudes regarding the impact of technologyenabled innovation (tei) on economic growth (die) and environmental sustainability (ens). the behavioural aspect is a focal point of scholarly inquiry, as attitudes play a substantial role in fostering a sense of creativity. consequently, numerous academics have devoted their attention to studying this phenomenon. however, prior investigations into these specific relationships were nonexistent. this study aimed to examine the relationship between attitudes towards technological innovations, digital information ecosystems (die), and socioeconomic sustainability. previous studies have predominantly concentrated on examining the impact of governmental environmental policies on the interplay between individuals' perspectives on technological advancement, environmental concerns, and societal obligations. agbioforum, 25(1), 2023 | 143 alqasa & talat — moderating role of environmental governance policies in the relationship between attitude towards….. theoretical and empirical review theoretical background diffusion of innovation theory the research framework presented in this study is grounded in the diffusion of innovation theory (dot). the diffusion of innovations theory (doit) was introduced by e.m. roger as a framework for understanding the adoption and dissemination of new ideas within the field of social sciences in 1962. initially, the term was employed within the realm of marketing to elucidate the process by which businesses disseminate and establish a presence within a social system or population over a period of time. the ultimate consequence of diffusion is the assimilation of novel habits, products, or concepts into the social fabric. acceptance encompasses various activities that deviate from customary and formal practices or routines, such as engaging in novel behaviours, acquiring or utilising new products, and so forth. the process of adoption is influenced by the perception, commodification, and unique behaviour associated with a particular concept. therefore, the possibility of diffusion exists (yingfei et al., 2022). rogers defines diffusion as the process by which novel findings are gradually disseminated among individuals within a social system. the hypothesis regarding the dissemination of innovations encompasses a broad range of sources that extend across various domains (silva, braz, cavalcante, & alves, 2022). numerous studies have integrated extensive diffusion models of technological innovation (ti), which are based on roger's theory, to encompass and facilitate the adoption and dissemination of ti at both the micro and macro levels within higher education institutions. the theory proposed by rogers has been widely utilised in order to elucidate the factors that contribute to the differentiation in the creation and diffusion of innovations across societies. according to rogers, diffusion refers to the process by which innovations are disseminated among members of a social system over a period of time, typically through specific channels. the recognition of innovation as novel by adopters can be attributed to certain factors. roger's theory identified four key factors that contribute to the dissemination of innovation: communication channels, social structure, inventions, and timing (rogers, singhal, & quinlan, 2014). this rule serves as the foundation for numerous hypotheses, models, and investigations pertaining to the phenomenon of diffusion. several studies have employed rogers' theory to elucidate the factors contributing to differential levels of technology immersion among individuals. in the words of rogers, it is advisable for individuals to closely monitor the statistical distribution in this context. during the ongoing processes of dissemination and acceptance this demonstrates a bias towards the imperative of technology dissemination without adequately considering the potential consequences associated with such endeavours (sahin, 2006). furthermore, within the context of the diffusion process, it is common for the primary adopters to be held accountable for the failure of an invention, rather than attributing it to other factors such as the social structure in which they operate or the capabilities of the technology they employ. according to rogers, technological advancement demonstrates a tendency to align with lifelong learners who advocate for innovations rather than catering to a predisposed audience. this observation highlights the presence of individual blame bias. rogers proposes that the acceptance of an idea within a social system is not necessarily uniform among all participants, as it may differ from the manner in which individual adopters personally embrace it. the change initiatives prioritise the rapid adoption and diffusion of strategies in order to attain immediate outcomes without adequately considering the influence of the social structure. the three primary focal points or key concepts in rogers' social system encompass individuals who are enthusiastic about technology and the process of adapting to technology (dintoe, 2019). consequently, the aforementioned approach provided a basis for technological advancement (cho, hwang, & lee, 2012; swinerd & mcnaught, 2014), thereby stimulating organisational innovation and leading to enhanced social and environmental sustainability (ens) (xiao & su, 2022). hence, considering these identified gaps, the present study aims to examine the influence of advanced technology and technological innovation (atti) on the environment and social outcomes (sos), while considering the mediating role of digital entrepreneurship (die) and the moderating role of environmental government policies (engp). the variables depicted in figure 1 below are anticipated. figure 1: theoretical framework attitude towards technology innovation social sustainability environmental sustainability digital entrepreneurship environmental government polices agbioforum, 25(1), 2023 | 144 alqasa & talat — moderating role of environmental governance policies in the relationship between attitude towards….. attitude toward technological innovation, environmental sustainability, and social sustainability in general, it is possible to alter attitudes either internally or socially through a sufficient investment of time and effort (shrum, liu, nespoli, & lowrey, 2012). internal attitudes are the means by which actions, emotions, and opinions are expressed, and these factors collectively shape attitudes in the process of making judgements (iveroth & bengtsson, 2014). the central theme of the story pertains to the utilisation of personal gains to advance individual concepts, commonly referred to as an internal disposition (jepson, brannstrom, & persons, 2012). the utilisation of external factors such as logical reasoning, empathy, and persuasive techniques can effectively refine and reinforce individuals' attitudes, thereby influencing their sense of moral responsibility (higgins & walker, 2012). in addition to the aforementioned factors, it is posited that extrinsic variables such as benevolence and egocentrism may exert influence on perspectives (bakar, talukder, quazi, & khan, 2020). within the realm of sustainability research, there exist a multitude of diverse viewpoints regarding technology. diverse viewpoints exist regarding environmental issues, ranging from those who perceive innovation and productivity improvements as means to draw attention to these problems to individuals who believe that such advancements are now the root cause. the latter group argues that these developments contribute to a rise in overall resource consumption, leading to the disruption of natural ecological cycles due to the introduction of increasingly foreign particles. within the context of these two scenarios, there exist countless and initially perplexing variations and combinations of cognitive frameworks (ehlers & kerschner, 2013). the process of converting information into an activity can be understood as a manifestation of innovation. innovation is widely recognised as a multifaceted process encompassing the acquisition of knowledge, exploration, and integration of novel technologies and their associated methodologies. the primary driving factor that enhances the economic performance of enterprises is the main catalyst for improving the standard of living for individuals (tang, 2006). joseph schumpeter is credited with being the initial proponent of the concept of innovation. his work focused on the separation of innovation into different stages, the characteristics of technological innovation, and its significant role in society. the correlation between geographical location and innovation is widely recognised as a crucial determinant of economic growth in the present era. the automotive industry and its associated parts manufacturing sector are currently experiencing intense competition from both domestic and international markets, as well as from the export sector. therefore, it is imperative to implement the rules of the world trade organisation (wto) and embrace the concept of globalisation. the implementation of fundamental competencies in industrial technology is imperative. technological innovation (ti) exerts a significant impact on fostering economic growth. therefore, these aforementioned factors are the primary drivers of technological progress (tang, 2006). organisational innovation (oi) refers to the utilisation of novel and enhanced ideas and methodologies both within and beyond the confines of an organisation. this encompasses the implementation of innovative management and marketing systems with the aim of augmenting value for stakeholders while simultaneously reducing production costs and streamlining processes. in contrast, ti focuses on directly meeting customer satisfaction through the implementation of novel processes and products (gunday, ulusoy, kilic, & alpkan, 2011; kyläheiko et al., 2011). contemporary scholarly investigations elucidate the characteristics of organisational and technical innovation as the primary factors that exert influence on the efficacy of an organisation. there is a need for further investigation into how the automobile sector utilises these two capacities for profit generation during the process of internationalisation. by leveraging organisational advancements and integrating technology, businesses can effectively explore the dynamics of foreign markets and establish a platform for continuous learning among entrepreneurs. the use of technology and organisational innovation (tei and oi) plays a significant role in facilitating the growth of international business in the vehicle and automotive parts automobile sector (zahoor, donbesuur, nwoba, & khan, 2021). as indicated by various correlations that could have been established among attitudes towards technological advancement, online commerce, and socio-environmental sustainability (brandão santana et al., 2015; satalkina & steiner, 2020). consequently, we created the following hypothesis. h1: social sustainability significantly affected by attitude towards technological innovation. h2: environmental sustainability significantly affected by attitude towards technological innovation. h3: digital entrepreneurship significantly affected by attitude towards technological innovation. mediating role of digital entrepreneurship governments, businesses, and firms continue to adapt and enhance their utilisation of digital technologies, encompassing various advancements such as cloud computing, machine learning, 3d printing, and edge computing (thoma et al., 2021). digital possibilities refer to the novel opportunities for engagement with consumers and environmental processes that are harnessed by organisations, particularly entrepreneurs, due to the distinctive attributes of digital innovation (meurer et al., 2022; nambisan, wright, & feldman, 2019). the digitization process gives rise to new institutional mechanisms that bring about unique values, practices, and institutions. these mechanisms challenge traditional logical configurations and modify the norms of the game (heinz, hunke, & breitschopf, 2021). digital components that are extensively utilised and possess adaptabilities, such as enterprise resource management (erp) systems, as well as structures that establish standards for player engagement, such as product websites and blockchain technology, exemplify these configurations. these configurations effectively coordinate the interaction among players. the profound digital transformations exert agbioforum, 25(1), 2023 | 145 alqasa & talat — moderating role of environmental governance policies in the relationship between attitude towards….. a substantial impact on organisational frameworks, thereby carrying considerable significance. scholars assert that digital infrastructures and components offer technological benefits that expand the possibilities for generating, distributing, and acquiring value, thereby creating novel avenues for these activities (hylving, rydström, & bergquist, 2022; schwarz, gregori, krajger, & wdowiak, 2021). the emergence of new business models in response to economic transformations necessitates the cultivation of distinct organisational capabilities in order to achieve success (rialti, marzi, caputo, & mayah, 2020). digital technologies possess a distinct and evolving logic that operates alongside existing interpretations, exerting influence on their perception and implementation by introducing novel behaviours, attitudes, and processes (tumbas, berente, & vom brocke, 2018). the fundamental aspects that shape the evolution of digitization include connectivity, accessibility, affordability, access, flexibility, and inheritability (caputo, fiorentino, & garzella, 2019; keller, ollig, & rövekamp, 2022). hence, digital entrepreneurship (die) holds significant promise in addressing social and environmental concerns, as it represents a contemporary advancement in assessing the sustainability of businesses from both societal and ecological perspectives. as proposed by prasetyo and setyadharma (2022), entrepreneurial businesses have leveraged digital technology to address societal challenges that appear to be difficult to resolve by implementing innovative strategies. the issues at hand pertain to the sustainable longevity of the internet. this study agenda proposes an examination of the digital toolkit employed by innovative enterprises, highlighting unique considerations for entrepreneurship, marketing strategies, and organisational contexts. additionally, it suggests novel perspectives on the concepts of confidence and institutional logic. the role of die as a mediator within various organisational structures (alosani, yusoff, & al-dhaafri, 2020). the proposition has likely been put forth that the utilisation of technologies has the potential to facilitate the attainment of our objective of socio-environmental sustainability. the existing body of research has predominantly concentrated on examining the mediating roles of digital technology rather than exploring the potential of die as mediators. hence, in the present study, the direct influence effect (die) could potentially serve as a mediating variable between attitude towards technology and innovation (atti) and environmental sustainability (ens), as well as social sustainability (xiao & su, 2022). hence, the following hypothesis is formulated below. h4: social sustainability significantly affected by digital entrepreneurship. h5: environmental sustainability significantly effect by digital entrepreneurship. h6: digital entrepreneurship significantly mediates concerning attitude towards technological innovation and social sustainability. h7: digital entrepreneurship significantly mediates concerning attitude towards technological innovation and environmental sustainability. moderating role environmental government policies the existing literature on the association between attitude towards technology innovation (atti), environmental sustainability (ens), and social sustainability (sos) has yielded conflicting results, as indicated by the diverse findings reported in studies conducted by kennedy and marting (2016), mousavi, bossink, and van vliet (2019), and zhang, khan, lee, and salik (2019). hence, it is imperative to allocate sufficient time for future research endeavours involving alternative associations. in cases where there are inconclusive findings regarding the relationship between exogenous and endogenous variables, the inclusion of a moderating variable is necessary in order to enhance said relationship (baron & kenny, 1986). additional research has also suggested that the association between atti and the environment could be examined in conjunction with other moderating factors. hence, it can be argued that engp may serve as a moderating variable, as government policies that support innovation have the potential to enhance the sustainability of organisations from both environmental and social perspectives (chien et al., 2021; khan et al., 2020). the provision of governmental support for environmental initiatives also yields positive and substantial impacts on the environmental sustainability index (ens) (laurian, walker, & crawford, 2017). therefore, based on previous arguments, current research has used the engp as moderating variable and following hypothesis are formulated below; h8: environment governance significantly moderates concerning attitude towards technology innovation and environmental sustainability. h9: environment governance significantly moderates concerning attitude towards technology innovation and social sustainability research methodology the present study aims to examine the influence of attitude towards technology innovation (atti) on environmental and social sustainability (sos), while considering the mediating role of digital entrepreneurship (die) and the moderating role of environmental government policies (engp). the data was obtained from the employees working in automobile sector in the kingdom of saudi arabia. the study employed the likert questionnaire as a data collection instrument, suggesting that it adopted a quantitative research methodology. this choice of using a questionnaire aligns with the principles of quantitative research and a cross-sectional research design, as noted by apuke (2017). a structured, self-administered questionnaire continues to be employed for data collection. the research questionnaire comprised four variables. one of the independent variables in this study was atti, which was measured using ten items derived from the research conducted by dwivedi, choudrie, and brinkman (2006). the concept of digital entrepreneurship (die) serves as a mediating variable in this study. it was assessed using a set of ten items derived from the research conducted by sotoacosta, popa, and palacios-marqués (2016). the measurement of environmental sustainability (ens) was agbioforum, 25(1), 2023 | 146 alqasa & talat — moderating role of environmental governance policies in the relationship between attitude towards….. conducted using a set of five items that were derived from the research conducted by ren, he, zhang, and chen (2019). the measurement of social sustainability (sos) was conducted using a set of five items that were derived from the research conducted by johnson and chattaraman (2019). both of these variables are employed as dependent variables. in essence, the study has incorporated the utilisation of environmental government policies (engp) as a moderating variable, which has been assessed through three distinct items. the survey was assessed using a fivepoint likert scale, where a rating of 1 indicated strong agreement and a rating of 5 indicated strong disagreement. the researchers employed a convenient sampling technique to distribute the adopted questionnaire among a sample of 300 employees. this technique was chosen based on the researchers' convenience, as it is deemed suitable for data analysis (taherdoost, 2016). out of a total of 300 research instruments, 230 were returned. data analysis the study encompassed both descriptive and inferential analyses. the descriptive analysis was conducted using the statistical package for the social sciences (spss), while the inferential analysis was performed using analysis of moment structures (amos). both analyses will be discussed in the following sections. descriptive statistics descriptive analysis was conducted using the statistical package for the social sciences (spss). table 1 displays the descriptive analysis of each variable. the findings of the analysis provide insights into the perceptions of the respondents regarding the variables. the analysis was conducted by summing all the scores of the individual items. the average scores of all the variables range from 3.1695 to 3.8485. the observed moderation of the mean scores for the aforementioned variables suggests that the respondents exhibit a high level of engagement in the activities associated with the independent and dependent variables. furthermore, the standard deviations (s.d.) of all the variables fall within the range of 0.53 to 0.73. table 1 presents the average score and standard deviation for each variable. table 1. descriptive statistics n minimum maximum mean std. deviation ens 300 1.00 5.00 3.1695 .71202 sos 300 1.00 5.00 3.6256 .83663 ati 300 1.00 5.00 3.7329 .83303 die 300 1.00 5.00 3.8485 .62204 engp 300 1.00 5.00 3.2393 .7377 note=ens-environmental sustainability, sos-social sustainability, atti-attitude towards technology innovation, die-digital entrepreneurship, engp-environmental government policies. common methods biased according to rodríguez-ardura and meseguer-artola (2020), the utilisation of a single source for data collection increases the susceptibility of results to common method bias (cmb). kock (2015) conducted an analysis of cmb's complete collinearity using the pls-sem method. harman's single-factor test was employed to screen for cmb problems. the findings of the study indicate that the collective variance explained by all items was 45.204%, which fell below the critical threshold of 50%. therefore, based on the current data, there is no reason to doubt the credibility of the cosmic microwave background (cmb). hence, based on these findings, it can be concluded that the cosmic microwave background (cmb) is valid. table 2. common method biased total variance explained component initial eigenvalues extraction sums of squared loadings total % of variance cumulative % total % of variance cumulative % 1 4.972 45.204 45.204 4.972 45.204 45.204 2 2.479 22.533 67.737 2.479 22.533 67.737 3 .731 6.641 74.378 .731 6.641 74.378 4 .674 6.125 80.504 .674 6.125 80.504 5 .453 4.114 84.618 .453 4.114 84.618 6 .424 3.859 88.477 .424 3.859 88.477 7 .353 3.205 91.682 .353 3.205 91.682 8 .316 2.869 94.550 .316 2.869 94.550 9 .265 2.406 96.957 .265 2.406 96.957 10 .206 1.874 98.830 .206 1.874 98.830 11 .129 1.170 100.000 .129 1.170 100.000 extraction method: principal component analysis. reliability and validity the present investigation utilised the structural equation modelling (sem) methodology to examine the conceptual framework put forth by prior scholars (ahmad, farhan, & fareed, 2019; ahmad, ahmad, farhan, & arshad, 2020; bhatti, farhan, ahmad, & sharif, 2019). other scholars like arshad et al. (2020a) and arshad et al. (2020b) have proposed that a strong correlation between all components of a research document structure is of paramount importance. to ascertain the attainment of the objective, a convergent validity assessment was conducted, which demonstrated a significant correlation among the entirety of the articles. the strength of this correlation is deemed significant when all variables exhibit alpha and composite reliability values exceeding 0.70, as observed in our analysis. furthermore, the average variance extracted (ave) for all structures is found to be 0.5, which suggests the meaningfulness of the relationships among the variables. the results indicate that the average variance extracted (ave) values, alpha values, and composite reliability values fall within acceptable ranges. hence, the construction of the study meets the requirements for convergent validity, as indicated in table 3, presented below. in addition to assessing convergent validity, the subsequent stage involves evaluating discriminant validity. the study examined the discriminant validity by evaluating the fornell and larcker criteria, which involve the calculation of the square roots of the average variance extracted. the diagonal values of this test should exhibit greater magnitudes compared to the other diagonal values, indicating the presence of discriminant validity in the construct. according to the predicted values presented in table 4, it can be observed that all of the diagonal values are higher than the corresponding values below them. this pattern suggests that the construct under consideration exhibits discriminant validity. agbioforum, 25(1), 2023 | 147 alqasa & talat — moderating role of environmental governance policies in the relationship between attitude towards….. table 3. convergent validity loadings r2 ave cr. attitude towards technology innovation 0.86 0.92 atti1 0.78 0.92 atti 2 0.81 0.59 atti 3 atti 4 0.87 0.80 0.97 0.88 atti5 0.78 0.78 atti6 0.81 0.67 atti7 0.83 0.78 atti8 0.71 0.89 atti9 0.67 0.67 digital entrepreneurship 0.72 0.89 die1 0.77 0.88 die2 0.82 0.87 die3 0.88 0.89 die4 0.68 0.78 die5 0.79 0.71 die6 0.70 0.61 die7 0.64 0.72 die8 0.56 0.62 die9 0.59 0.72 environmental sustainability 0.82 0.83 ens1 0.79 0.92 ens2 0.75 0.88 ens3 0.78 0.95 ens4 0.78 0.78 ens5 0.71 0.83 social sustainability 0.821 0.827 sos1 0.82 0.91 sos2 0.79 0.82 sos3 0.89 0.61 sos4 0.78 0.78 sos5 0.90 0.35 environmental government policies 0.82 0.849 engp1 0.71 0.84 engp2 0.68 0.83 engp3 0.76 0.81 note=ens-environmental sustainability, sos-social sustainability, atti-attitude towards technology innovation, die-digital entrepreneurship, engp-environmental government policies. table 4. discriminant validity ens sos atti die engp ens 0.893 sos 0.143 0.845 atti 0.372 0.313 0.893 die 0.767 0.639 0.389 0.921 engp 0.581 0.522 0.485 0.324 0.834 note=ens-environmental sustainability, sos-social sustainability, atti-attitude towards technology innovation, die-digital entrepreneurship, engp-environmental government policies. hypothesis testing results the subsequent step involves conducting a structural analysis to test the hypothesis, provided that the measurement model satisfies the established criteria. the findings from the analysis of structural equation modelling (sem) reveal that there is a positive and statistically significant relationship between attitude towards technology innovation (atti) and social sustainability (sos). additionally, the results demonstrate that atti also has a positive and statistically significant impact on environmental sustainability (ens), thereby providing support for the proposed hypotheses 1 and 2. in essence, it can be stated that atti exhibits a favourable and noteworthy impact on digital entrepreneurship (die), thereby providing support for hypothesis 3. however, the digital innovation environment (die) exerts a positive and substantial impact on both the service offering strategy (sos) and the employee nurturing strategy (ens), thereby providing support for the proposed hypotheses 4 and 5. the findings suggest that there is a positive and significant mediating effect between atti and sos, specifically in relation to ens. this indicates a partial mediating effect, which supports the proposed hypotheses 6 and 7. the study found that environmental government policies (engp) play a significant and positive moderating role in the relationship between attitudes towards the environment (atti) and both subjective well-being (sos) and environmental sustainability (ens). this finding is consistent with hypotheses 8 and 9. the obtained results demonstrate that all of the hypotheses have been substantiated by significant findings. the aforementioned outcomes are anticipated and presented in the subsequent table 5. table 5: hypothesis results  t-value sig. r2 sos <-atti 0.69 7.011 0.000 0.73 ens <-atti 0.71 4.477 0.000 0.73 die <-atti 0.62 4.272 0.000 0.71 sos <-die 0.43 3.434 0.000 0.82 ens <-die 0.59 2.871 0.005 0.83 sos <-die <--atti 0.45 2.512 0.005 0.60 ens <-die<--atti 0.45 2.072 0.038 0.81 sos <-engp*atti 0.78 7.128 0.015 0.83 ens <-engp*atti 0.81 4.542 0.000 0.76 note=ens-environmental sustainability, sos-social sustainability, attiattitude towards technology innovation, die-digital entrepreneurship, engp-environmental government policies. figure 2. hypothesis results agbioforum, 25(1), 2023 | 148 alqasa & talat — moderating role of environmental governance policies in the relationship between attitude towards….. discussion and implications this ground breaking research in technological innovation (tei) establishes a solid basis for digital entrepreneurs (die) operating within saudi arabia's automobile sector. additionally, it provides valuable insights to diverse organisations worldwide, enabling them to effectively pursue their social and environmental objectives. in the present study, an evaluation was conducted consisting of two distinct components. in the initial section, an examination was conducted of the direct correlations among organisational processes. in the subsequent section, an examination was conducted of the indirect and mediated associations. the results unveiled compelling data and showcased the efficacy of this particular approach to studying. the affective disposition of individuals towards technology, as well as emerging technological advancements, significantly influences the utilisation of technology by innovative enterprises. given that technological innovation is widely recognised as a catalyst for economic growth, it is pertinent to consider the potential contributions of automobile sector of saudi arabia. technological progress is propelled by the innovation exhibited by small and medium-sized enterprises (tang, 2006). the initial major research hypothesis pertained to the impact of technological advancements on the educational navigation system (ens). historically, numerous scholars have examined the integration of technological innovation and environmental sustainability (ens) as a cohesive entity. the significance of technological innovation was deemed integral to the field of environmental and sustainability studies. nevertheless, there exists dissent among numerous scholars regarding this association, as they posit that these phenomena are distinct entities (aboramadan, albashiti, alharazin, & zaidoune, 2020; sun, sarfraz, turi, & ivascu, 2022). neither study examined the reciprocal influence between the two variables. the findings of our study may serve as a valuable resource for future researchers seeking to establish a connection between the two phenomena. the second hypothesis pertained to the impact of individuals' attitudes towards emerging technologies on their sense of subjective well-being. the findings indicated a significant impact of the first variable on the second variable. this suggests that modifying behaviour to embrace a specific stance towards technology-enabled innovation (tei) may yield positive outcomes for businesses and lead to the emergence of socially-oriented startups (sos). furthermore, such behavioural changes can contribute to the regulation of societal structures, ultimately fostering an environment conducive to entrepreneurship. previous research has not established a significant correlation between individuals' attitudes towards emerging technologies and the overall sustainability of society. the third hypothesis examined the impact of individuals' attitudes towards emerging technology on digital information engagement (die). this theory was subsequently validated, and the findings held significant implications. this finding demonstrated a significant correlation between individuals' attitudes towards technological innovation and all four variables. one crucial aspect to contemplate is the process of altering one's perspectives towards particular entities, which can be understood as a behavioural phenomenon. the role of attitudes in shaping perceptions of creativity has been a subject of considerable research interest, with numerous previous studies focusing on this aspect. previous research has not examined these connections; however, the present study has identified additional associations between atti, die, and socio-environmental sustainability (brandão santana et al., 2015; satalkina & steiner, 2020). this study would benefit from investigating the interconnections between these phenomena. the fourth hypothesis stated a direct correlation between die and ens. the findings of this hypothesis were also significant and demonstrated a robust association with ens. subsequent experimentation revealed a significant and favourable impact of digital innovations on the state of social support (sos). the concept of decentralised impact enterprises (die) presents a promising avenue for organisations to achieve social and environmental sustainability. given its recent emergence, die holds considerable potential for addressing climate change and various social challenges. entrepreneurs have utilised digital technology to devise innovative resolutions for seemingly insurmountable challenges (xiao & su, 2022). previously, the topic of decoupling economic growth from environmental degradation has been examined from the perspective of both social and ecological sustainability. however, the findings indicate that the impact of digital innovation and entrepreneurship (die) on the chinese vehicle and automotive parts manufacturing industry varies in terms of promoting environmental sustainability and facilitating organisational processes. there is a potential indirect association between die and various other factors (kee, khin, & ho, 2021). this study investigated the role of die as a connecting mechanism, drawing upon the aforementioned concepts. the direct relationship was of significant importance, as it demonstrated the tangible efficacy of the die approach in promoting organisational sustainability and environmental stewardship. the utilisation of digital tools on a large scale by die results in significantly lower environmental pollution compared to conventional organisations that do not employ such technologies. historically, numerous research studies have examined the intersection of technological innovation with various conceptual domains. however, there have been opposing views from researchers on this matter (damanpour, 2014; hamel, 2006). the interrelationship between these two factors had not been previously investigated. the findings of this study demonstrate a significant association between the two variables. furthermore, the impact of attentional training and task interference (atti) on the dual-task interference effect (die) and the executive network system (ens) serves to impede the expansion of attitudes towards particular outcomes. the behavioural aspect is of considerable importance in understanding creativity, as attitudes play a crucial role in shaping perceptions. agbioforum, 25(1), 2023 | 149 alqasa & talat — moderating role of environmental governance policies in the relationship between attitude towards….. consequently, numerous scholars have directed their focus towards this area. however, prior to this investigation, no scholarly examination had been conducted on these specific relationships. this study aimed to investigate the potential relationship between atti, die, and socioeconomic sustainability. previous studies have primarily concentrated on examining the impact of governmental environmental policies on the interplay between individuals' attitudes towards technological innovation, environmental concerns, and social responsibility. limitations and future directions despite the novelty of the study, there were only a limited number of concerns associated with it. initially, the study employed small and medium business owners as representative samples of the population. however, in order to achieve the goal of obtaining objective and unbiased responses regarding these factors, it is imperative to expand this study to include the viewpoints of individuals working in various business settings. furthermore, the concept of assessing attitudes towards organisational innovation appears to be a novel approach that previous scholars have considered to have overlapping characteristics. further validation is required to ascertain the veracity of the current study's proposition that these processes are distinct. furthermore, it is imperative for future studies to address the crucial aspect of sustainability that has been overlooked in this particular study. specifically, these studies should place greater emphasis on investigating the potential impact of the predictor variables utilised in this research on economic sustainability. the potential moderating influences of organisational environment, brand equity, job satisfaction, and self-efficacy were not taken into account in the present study. however, it is recommended that 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(2022). the domestic patent application and international technological innovation in an open economy: promotion or substitution? technology analysis & strategic management, 1-14. doi: https://doi.org/10.1080/09537325.2022.2132383 https://doi.org/10.1057/s41265-018-0055-0 https://doi.org/10.5897%2fajar2014.8969 https://doi.org/10.1051/shsconf/20196504006 https://doi.org/10.3389/fpubh.2022.850172 https://doi.org/10.1016/j.jksus.2021.101683 https://doi.org/10.1007/s10490-021-09799-1 https://doi.org/10.3390/su11020495 https://doi.org/10.1080/09537325.2022.2132383 agbioforum, 25(1): 154-163. ©2023 agbioforum business analysis of kereman cow meet quality following the covid-19 pandemic: moderating role of farm environment ni made ayu gemuh rasa astiti warmadewa university, indonesia i gusti ayu dewi seri rejeki warmadewa university, indonesia ni ketut mardewi warmadewa university, indonesia email correspondence: ayugemuh@gmail.com the covid-19 pandemic has had a significant impact on the quality of meat. to improve this quality, it is imperative to prioritise research and policy initiatives that focus on farm management, environmental factors, feed efficiency, and feed quality. this study aims to examine the influence of farm management practices, feed efficiency, and feed quality on the meat quality of kereman cows in indonesia following the covid-19 pandemic. this study examines the potential moderating influence of the farm environment on various factors, including farm management, feed efficiency, feed quality, and meat quality of kereman cows in indonesia following the covid-19 pandemic. the primary data for this study was obtained from cow farmers in indonesia using survey questionnaires. the article also assesses the reliability of the data and the relationship between the constructs under study using smart-pls. the results of the study demonstrate a positive correlation between farm management, feed efficiency, and feed quality and the meat quality of kereman cows in indonesia. the results also revealed that the farm environment plays a significant moderating role in the relationship between farm management, feed quality, and meat quality of kereman cows in indonesia. the study provides guidance to regulatory bodies in formulating regulations pertaining to the enhancement of meat quality through the implementation of farm management practices, optimisation of feed efficiency, and improvement of feed quality. keywords: farm management, farm environment, feed efficiency, feed quality, meat quality, kereman cow introduction the consumption of farm-raised meat is experiencing a surge in global popularity due to an increasing demand for nutritious meat products. to attain optimal quality that meets consumer standards, it is imperative to comprehend the factors that influence the quality of meat produced on farms. the quality of meat is of utmost importance as it significantly influences customer acceptability and longterm interest in the product. the classification of meat quality is commonly divided into two categories: eating quality and processing quality, which are determined based on their respective applications (sañudo et al., 2004). nevertheless, the assessment of meat quality by customers holds significant importance. consumers frequently anticipate that meat will possess qualities such as healthiness, wholesomeness, freshness, leanness, tenderness, juiciness, and flavour. the increasing consumer consciousness regarding personal health has led to a rise in demand for alternative meat products that are considered healthier. this trend is particularly evident in the preference for low-fat options among a significant portion of the population (carrasco-garcía et al., 2020). farm meat could potentially serve as a viable alternative to red meat due to its comparatively healthier fatty acid composition in relation to beef and lamb. the acceptance of goat meat by consumers is negatively affected by a range of quality-related issues. for example, it is commonly perceived by consumers that beef sourced from farms possesses a coarse texture, fibrous consistency, and a pronounced taste (pogorzelski et al., 2022). the phenomenon of globalisation, coupled with the ongoing covid-19 pandemic, has exerted a significant influence on various aspects of the global landscape. one of the primary positive outcomes was to raise global awareness regarding quality of life. the global pandemic has compelled individuals worldwide to adopt a lifestyle that prioritises health and is linked to overall well-being and success. in contemporary society, there is a significant emphasis on the adoption and maintenance of a healthy lifestyle. healthy food is the fundamental component of a well-rounded and sustainable lifestyle. globalisation has led to the displacement of the notion of healthy food with that of hygienic food. there are a multitude of sources for organic food, with meat being widely acknowledged as a prominent category. furthermore, this phenomenon has led to an increased global demand for high-quality meat. furthermore, this has led to a significant expansion in the meat industry. it is projected that the meat market will generate a revenue of us$1,378.0 billion in 2023, following the aftermath of the covid-19 pandemic (tikhomirova, 2023). the market is projected to experience an annual growth rate of 6.35%. in the context of global comparison, it is projected that china will generate the highest revenue, amounting to $260 billion by the year 2023. a study conducted in 2023 following the covid-19 pandemic revealed that perperson revenues amounted to us$179.40 (razanova, farionik, & skoromna, 2023). it is projected that the meat market will achieve a volume of 182.1 billion kilogrammes by the year 2028. according to projections, the meat industry is anticipated to experience volumetric growth of 3.3% by the year 2024. it is projected that in 2023, following the aftermath of the covid-19 pandemic, the mailto:ayugemuh@gmail.com agbioforum, 25(1), 2023 | 155 astiti, rejeki, mardewi — business analysis of kereman cow meet quality following the covid-19 pandemic global meat market is expected to yield an average of 20.4 kilogrammes of meat per capita (ufer, padilla, & link, 2023). indonesia, specifically the region of bali, has been confronted with a dearth of natural resources, specifically in the realm of mining activities. bali cattle possess remarkable adaptability, rendering them suitable for utilisation in diverse ecological settings. the bali cattle breed is currently thriving in various regions, including java, sulawesi, nusa tenggara, and the island of bali (nuraini, aditia, & brahmantiyo, 2018). bali cattle are characterised by their distinctive white buttocks and all four of their legs, which exhibit a striking white coloration. bali cattle, a breed indigenous to indonesia, generally exhibit a weight range of 300 to 400 kg. notably, they possess one of the highest carcass proportions among native indonesian cattle, measuring at 57%. during the early stages of their development, bali cattle exhibit a physique resembling that of a bull and possess a brickred hue. as bali cattle mature, their coloration undergoes a progressive darkening, particularly in males. on average, bali cattle exhibit a height of approximately 130 cm, whereby the male counterparts possess horns that extend further from the skull compared to the female counterparts (sofyan et al., 2021). the population of bali cattle exhibits variation in terms of gender, encompassing both males and females. between the years 2016 and 2020, the population of male bali cattle in bali province is projected to be 218,027 heads, 194,511 heads, 205,929 heads, 208,635 heads, and 204,895 heads, respectively. the population of female bali cattle in 2020 was recorded as 328,343, 313,283, 320,230, 336,320, and potentially as high as 345,455 individuals (listyarini et al., 2022). various factors influence the quality of meat, both in indonesia (specifically bali) and worldwide. 1) farm management, which encompasses elements such as temperature and humidity, 2) various species, 3) heredity is a fundamental aspect of genetics and biology. it refers to the passing down of genetic information from one 4) age, and 5) gender 6) feed efficiency, 7) feed efficiency, 8) muscle location activity, 9) nutritional factors, 10) pre-slaughter fasting, 11) chilling, and ageing have been discussed in previous studies (mahbubi, uchiyama, & hatanaka, 2019; nuraini, aditia, & brahmantiyo, 2018; sofyan et al., 2021). the primary objective of the current study was to investigate the various factors, such as farm management, feed quality, and efficiency, in relation to meat quality. additionally, the study examines the moderating effect of the farm environment. figure 1: revenue from meat source: statista this study is intended to fill certain gaps in the existing literature. specifically, the investigation of a model consisting of variables such as meat quality, farm management, feed quality, and feed efficiency, along with the moderating influence of the farm environment, has not been thoroughly explored in recent studies, particularly in the context of bali, indonesia. in addition, 1) alcalde et al. (2017) and kučević et al. (2019) have looked into the connection between farm management and meat quality. this study aims to explore the same relationship while also considering factors such as meat quality, feed quality, and feed efficiency. additionally, the moderating effect of the farm environment will be examined in the context of bali, indonesia. 2) in their respective studies, andersen, oksbjerg, young, and therkildsen (2005) and de araújo et al. (2017) investigated the interconnection between feed quality and meat quality. building upon their research, this study further examines this relationship in the context of bali, indonesia, by incorporating additional factors such as farm management, feed efficiency, and the moderating effect of the farm environment. 3) nascimento et al. (2016) and gurgeira et al. (2022) investigated the interplay between feed efficiency and meat quality. furthermore, they examined the influence of additional factors such as farm management, feed quality, and the moderating effect of the farm environment in bali, indonesia. 4) tandon et al. (2020) and kushwah, dhir, and sagar (2019) investigated the moderating effect of the farm environment in various contexts. specifically, they examined its role as a moderating variable in the relationship between meat quality, farm management, feed quality, and feed efficiency, with a particular focus on bali, indonesia. the present study aims to elucidate several key aspects. firstly, it seeks to underscore the significance of agbioforum, 25(1), 2023 | 156 astiti, rejeki, mardewi — business analysis of kereman cow meet quality following the covid-19 pandemic meat quality in promoting good health and nourishment for children. secondly, it aims to contribute to the existing literature on meat quality, with a specific focus on bali, indonesia. thirdly, it aims to provide valuable insights for professionals in the meat industry, enabling them to comprehend the demand for organic food and develop strategies to enhance meat quality. lastly, it aims to assist professionals involved in farm management by elucidating the fundamental requirements for producing high-quality animals for organic food production. literature review the consumption of meat is experiencing a significant surge on a global scale. the rise in utilisation of meat additionally contributes to the amplification of the significance of meat quality. there is an increasing global awareness regarding the importance of high-quality nutrition. in this particular study, alcalde et al. (2017) conducted an investigation to examine the relationship between farm management practices and transportation duration on the quality of the milk of kids suckling goats. the study was conducted on suckling goat offspring. in the initial stage, a total of 32 suckling kids were selected from each farm to be included in the experiment. the juvenile goats were relocated to a distance ranging from 2 to 6 hours. subsequently, the blood samples of the juvenile goats were collected, and the findings indicated that the musculature of the travelling kids' meat was impacted. the study's findings indicate that the management of transportation in farming has a significant impact on the quality of meat. in a similar vein, the study conducted by kučević et al. (2019) examined the relationship between farm management outcomes and their impact on the quality traits of livestock during the fattening phase. the study primarily concentrated on the simmental calves. the population, consisting of 48 simmental individuals, was partitioned into two distinct sections. in the initial section, claves sourced from a comparable farm were included, while in the subsequent section, claves obtained from diverse farms were chosen. a total of 24 claves were chosen from a single farm, while an additional 24 claves were selected from various farms. both calves were closely monitored and provided with nourishment to determine if it led to similar fat content and meat quality. the findings of the study indicate that the way farm management practices, particularly those related to feeding, impact the fat content of animals, subsequently influencing the overall quality of their meat, the significance of goat meat is increasingly recognised with the passage of time. over time, there has been a growing recognition that goat meat possesses a high nutritional value and lean composition, thereby exerting a significant and favourable impact on human health. it is imperative to comprehend the underlying factors that contribute to the quality of meat. in the present study, pophiwa, webb, and frylinck (2020) conducted research on the various factors that have an impact on the quality of meat. the study was conducted in the united states of america. the findings of the investigation suggest that various factors, including farm management practices, breed characteristics, genetic traits, age at slaughter, and proximity to the abattoir, exert a significant influence on the quality of meat. the decided hypothesis is as under: h1: the farm management has an association with meat quality. the utilisation of the management component in the feeding strategy is commonly employed as a means of ensuring quality control in meat production, as well as in relation to performance, animal welfare, safety, nutritional value, and sensory and technological quality. the foundation of high-quality meat lies in the provision of high-quality feed. moreover, it also leads to the safeguarding of animals against various diseases. in the present study, andersen, oksbjerg, young, and therkildsen (2005) investigated whether the quality of feed has an impact on the quality of meat. the study findings suggest that a) muscle protein turnover has an impact on the quality of meat, and b) the energy level of muscles at the time of slaughter also influences meat quality. the study strongly advocates prioritising the feed quality of animals to improve the quality of meat. several factors, such as farm management practices, farm environment, feed efficiency, distance to the abattoir, and animal age, can influence the quality of feed. in the present study, de araújo et al. (2017) conducted research on the interrelationship between quantitative feed, sex-related traits, and meat quality. the study was conducted on juvenile sheep. the study employed a sample of 35 lambs, each with an age of 120 days and a weight of 0.89 kilogrammes. the research findings suggest that feed quality factors have a significant impact on the age, weight, and fat content of lambs, consequently influencing the overall meat quality. the study suggested that particular attention should be given to the quality of the lamb's feed to ensure the provision of high-quality nutrition. in a similar vein, the concept of feed intake (fi), which quantifies the efficiency with which animals utilise feed, can be employed to elucidate the significant variability in feed consumption observed among beef cattle, irrespective of their size and rate of growth. food insecurity (fi) is defined as the difference between the actual intake of dry matter or energy and the expected intake. the quality of meat is influenced by the feed intake of animals. fidelis et al. (2017) conducted research on the interrelationship between feed intake, carcass traits, and meat quality. the study was conducted on male bovines. the findings of the study suggest a significant correlation between the quality of meat and the bulls' feed intake. the decided hypothesis is as under: h2: the meat quality has an association with meat quality. the cost of feed consumption represents the highest expenditure in grill production. enhancing the efficiency of feed consumption constitutes a fundamental objective within breeding methodologies. scholarly literature has suggested a correlation between food efficiency and the quality of meat. in this context, wen et al. (2018) conducted research on the interrelationship between measures of feed efficiency, production, and meat quality. the study was conducted in china. the findings of the study suggest that food efficiency has a significant impact agbioforum, 25(1), 2023 | 157 astiti, rejeki, mardewi — business analysis of kereman cow meet quality following the covid-19 pandemic on food quality, particularly within the context of china. moreover, considering customer preferences and overall economic benefits, food intake proves to be a more effective measure for improving feed efficiency in broilers with slower development. the study additionally suggested placing particular emphasis on feed efficiency to improve the quality of meat. there are a multitude of factors that are prevalent in the practice of cattle farming. two crucial factors to consider are the quality of the feed and the cost of food. cattle farmers employ diligent measures to enhance food efficiency to reduce food costs and improve food quality. maximising feed efficiency is of utmost importance to reduce feed and feeding expenses, consequently leading to enhanced profitability. this is since feed costs typically constitute a significant portion, ranging from 55% to 75% of the overall expenses associated with beef production, excluding the costs associated with acquiring the animals. nascimento et al. (2016) conducted an investigation into the relationship between feed efficiency and meat quality. the study was conducted in brazil. brazil is widely recognised as the global leader in terms of cattle population. the findings of the study suggest that improved feed efficiency leads to reduced food expenses and contributes to enhanced meat quality. furthermore, the study conducted by gurgeira et al. (2022) examined the interrelationship between feed efficiency, growth characteristics, and meat quality. the study employed a sample size of 40 animals for the investigation. the findings of the study indicated that among the 40 animals selected, 30 were categorised as efficient, 13 demonstrated a moderate level of efficiency, and the remaining 10 were deemed inefficient. the decided hypothesis is as under: h3: meat efficiency has an association with meat quality. farm management is a challenging occupation. there are multiple factors contributing to this phenomenon, including the management of animal species, the quality of feed, the efficiency of feed utilisation, and living conditions. the fauna inhabiting agricultural landscapes is subject to the influence of various factors. the management of agricultural enterprises involves the establishment of equilibrium among various factors. in numerous instances, these factors are effectively addressed, even though the desired outcome of improving animal health may not be achieved. the farm environment has been identified as the primary determinant in all aspects. despite the implementation of effective farm management practices, the anticipated outcomes are unlikely to be realised because of the prevailing agricultural conditions. hence, the management practices employed on a farm have a significant impact on both farm management itself and the quality of meat produced, particularly with regards to animal health. in the present study, tandon et al. (2020) examined the relationship between individuals' attitudes and their purchasing behaviour in the organic food market. moreover, the relationship was examined by incorporating the moderating factors of trust and environmental concern. the study examined the relationship within the population of india. the study employs a cross-sectional research design. the study employed a quantitative approach. the researchers employed a random sampling technique. a sample of 512 participants was selected to gather quantitative data. data collection was conducted using questionnaires. to investigate the relationship, the research utilised the spaa-amos analysis approach. the findings derived from the analysis indicate a correlation between attitudes, motives, and the purchasing behaviour of organic food in india. moreover, the relationship mentioned above is moderated by trust and environmental concern. the decided hypothesis is as under: h4: farm environment moderates the farm management nexus with meat quality. the demand for organic food, specifically meat, is experiencing a steady increase over time. the global community prioritises quality over quantity. the implementation of this strategy has resulted in a significant enhancement of the farm business. on the contrary, cattle farming is widely regarded as a highly challenging occupation, primarily attributed to various factors such as the complexities associated with feeding practices and effective management strategies. the provision of nutritious feed to farm animals is associated with favourable health outcomes, which in turn serves as an indicator of the quality of meat produced. in numerous instances, the provision of high-quality feed does not necessarily result in an improvement in the quality of meat. there are numerous factors contributing to this phenomenon, such as the agricultural setting. hence, the agricultural setting influences this association. in the present study, kushwah, dhir, and sagar (2019) examined the relationship between attention to consumption and choice behaviour in the context of organic food. moreover, the relationship was examined by incorporating the moderating influence of purchasing behaviour and environmental concern. the investigation examined the relationship within the population of china. the study employs a cross-sectional research design. the study employed a quantitative approach. the researchers employed a random sampling technique. a sample of 452 participants was used to collect quantitative data. data collection was conducted using questionnaires. to investigate the relationship, the study utilised the structural equation modelling (sem) analysis approach. the findings derived from the analysis suggest a significant correlation between attention to consumption and the behaviour of choosing organic food. moreover, the relationship mentioned above is moderated by factors such as purchasing behaviour and environmental concerns. the decided hypothesis is as under: h5: the farm environment moderates the feed quality nexus with meat quality. there is a global trend towards improved hygiene practices. the demand for organic food, specifically meat, is experiencing a rapid increase. the primary objective of the global community is presently focused on achieving optimal quality. the enterprise of cattle farming is characterised by both profitability and challenges. the presence of robust and well-maintained farm animals serves as an indicator of the superior quality of meat. agbioforum, 25(1), 2023 | 158 astiti, rejeki, mardewi — business analysis of kereman cow meet quality following the covid-19 pandemic following the assessment of feed quality, the next crucial factor to consider is feed efficiency. in numerous instances, the food efficiency of animals is deemed satisfactory; however, it does not necessarily translate into a corresponding impact on their meat quality and overall health. there exist multiple factors contributing to this phenomenon, such as the farm's environmental conditions and the specific animal species involved. hence, the agricultural setting has an impact on the correlation between food efficiency and quality. in the present study, cachero-martínez (2020) examined the relationship between attitude, satisfaction, purchase intentions, and organic food products. moreover, the relationship was examined by incorporating the moderating influence of environmental concern. the investigation examined the relationship within the population of spain. the study employs a cross-sectional research design. the study employed a quantitative approach. the researchers employed a probabilistic sampling technique. a sample consisting of 195 consumers was used to collect quantitative data. data collection was conducted using questionnaires. to investigate the relationship mentioned above, the analysis approach of lr was utilised. the findings derived from the analysis indicate a significant relationship between attitude, satisfaction, and purchase intentions in relation to organic food products. moreover, the relationship mentioned above is moderated by environmental concerns. the decided hypothesis is as under: h6: the farm environment moderates the feed efficiency nexus with meat quality. research methods this study aims to examine the influence of farm management, feed efficiency, and feed quality on meat quality in kereman cows in indonesia following the covid-19 pandemic. additionally, it seeks to explore the moderating role of the farm environment in the relationship between farm management, feed efficiency, feed quality, and meat quality. the primary data for this study is obtained from cow farmers in indonesia through the utilisation of survey questionnaires. the study employs various variables as proxies, including farm management, feed efficiency, feed quality, farm environment, and meat quality. these variables are measured using specific items, as indicated in the respective studies: six items for farm management (rose et al., 2019), five questions for feed efficiency (li et al., 2019), three items for feed quality (kong et al., 2020), four items for farm environment (mazhar et al., 2021), and five items for meat quality (gómez, janardhanan, ibañez, & beriain, 2020). the participants of this study were chosen from a population of cow farmers in indonesia. the method employed for selecting the farmers as respondents was simple random sampling. the surveys were distributed to the selected farmers through personal visits. the researchers distributed a total of 543 surveys, of which 294 were received and subsequently utilised for analysis. the response rate of these surveys is approximately 54.14 percent. furthermore, the article assesses the reliability of the data and examines the associations among the constructs under investigation using smart-pls. the primary data analysis tool discussed in the literature effectively handles complex models and large data sets, yielding accurate estimations (hair jr, howard, & nitzl, 2020). additionally, the article employed three predictors, namely farm management (fm), feed efficiency (fe), and feed quality (fq). furthermore, the research also incorporated a moderating construct known as farm environment (fen) and a dependent construct referred to as meat quality (mq). the constructs are referenced in figure 2. figure 2: theoretical framework research findings the study findings revealed a significant correlation between the items, which is commonly referred to as convergent validity. the verification process involves the utilisation of alpha, which yields results indicating values exceeding 0.70. furthermore, the examination is conducted utilising factor loadings, and the outcomes reveal values surpassing 0.50. furthermore, the assessment of composite reliability (cr) was conducted to validate the findings, revealing values exceeding 0.70. finally, the assessment is also conducted using the average variance extracted (ave) method, which reveals values exceeding 0.50. the observed values demonstrated a strong positive correlation among the items. the numerical values are presented in table 1. farm management feed quality feed efficiency farm environment meat quality agbioforum, 25(1), 2023 | 159 astiti, rejeki, mardewi — business analysis of kereman cow meet quality following the covid-19 pandemic table 1. convergent validity constructs items loadings alpha cr ave feed efficiency fe1 0.926 0.928 0.949 0.824 fe2 0.946 fe3 0.936 fe5 0.818 farm environment fen1 0.926 0.904 0.933 0.777 fen2 0.924 fen3 0.795 fen4 0.875 farm management fm1 0.920 0.960 0.969 0.863 fm2 0.923 fm3 0.931 fm5 0.930 fm6 0.943 feed quality fq1 0.959 0.775 0.877 0.714 fq2 0.561 fq3 0.953 meat quality mq1 0.637 0.798 0.860 0.613 mq3 0.657 mq4 0.902 mq5 0.894 the outcomes of the study also revealed a significant correlation between the variables, which is commonly referred to as discriminant validity. the heterotrait monotrait (htmt) ratio is utilised for verification purposes, and the obtained results indicate values below 0.90. the observed values suggest a weak correlation among the variables. the data is presented in table 2. the results of the path analysis revealed a significant positive relationship between farm management, feed efficiency, and feed quality with the meat quality of kereman cows in indonesia. these findings provide support for hypotheses h1, h2, and h3. furthermore, the results also revealed that the farm environment plays a significant moderating role in the relationship between farm management, feed quality, and meat quality of kereman cows in indonesia. these findings support the acceptance of hypotheses h4 and h6. the associations are presented in table 3. table 2: heterotrait monotrait ratio fe fen fm fq mq fe fen 0.525 fm 0.596 0.502 fq 0.776 0.785 0.640 mq 0.900 0.547 0.645 0.819 figure 3: measurement model assessment table 3: path analysis relationships beta standard deviation t statistics p values fe -> mq 0.694 0.040 17.330 0.000 fm -> mq 0.132 0.032 4.083 0.000 fq -> mq 0.144 0.049 2.935 0.003 fen x fe -> mq 0.069 0.046 1.497 0.135 fen x fm -> mq 0.084 0.036 2.301 0.022 fen x fq -> mq 0.194 0.050 3.854 0.000 figure 4: structural model assessment agbioforum, 25(1), 2023 | 160 astiti, rejeki, mardewi, magfiroh — business analysis of kereman cow meet quality following the covid-19 pandemic discussions the results of the study suggest that there is a positive correlation between farm management practices and the quality of meat. the findings presented in biswas et al. (2019) provide support for the notion that individuals engaged in farm management can enhance the quality of meat produced on their farms by effectively executing poultry farming processes and demonstrating efficient organisational skills. additionally, individuals can develop and implement procedures aimed at enhancing the overall quality of meat products. these findings are consistent with the research conducted by puvača, tufarelli, and giannenas (2022), which similarly demonstrates that the implementation of efficient farm management practices and the maintenance of proper sanitary conditions contribute to the production of higher-quality meat. the findings of the study indicate a positive correlation between feed efficiency and meat quality. these results are consistent with the research conducted by atela, mlambo, and mnisi (2019), which posits that individuals with extensive experience and proficiency in decision-making related to chicken feeding are more capable of effectively managing feed. due to enhanced feed efficiency, there is potential for the improvement of meat quality to meet the health requirements of consumers. the outcomes presented in this study are consistent with the research conducted by alagawany, elnesr, and farag (2019), who similarly assert that an increase in feed efficiency leads to the development of robust poultry and the production of superior meat. the findings indicate a positive correlation between the quality of feed and the quality of meat. the findings presented in this study are corroborated by the research conducted by nguyen van et al. (2020), which investigates the influence of feed quality on the quality of meat produced on farms. the study suggests that by carefully selecting high-quality feed, it is possible to raise chickens without encountering health problems, ultimately resulting in the production of meat of superior quality. the findings presented in this study are consistent with the findings reported by ding et al. (2021). the study suggests that by assessing the quality of feed in agricultural settings, there is potential to enhance the production of meat with improved quality. the findings suggest that the farm environment plays a crucial role in moderating the relationship between farm management practices and the quality of meat produced. the findings presented in saleh et al. (2020) provide support for the notion that an effective farm environment, encompassing the farming structure, organisational culture, and communication structure, can lead to enhanced farm management efficiency and improved meat quality. these findings are consistent with the study conducted by martins et al. (2021), which similarly asserts that a well-structured farm environment is beneficial for enhancing farm management. the quality of meat is enhanced by effective farm management, which is facilitated by a favourable farm environment. the findings of the study suggest that the farm environment plays a significant role in influencing both feed efficiency and meat quality. baéza, guillier, and petracci (2022) support the findings of this study by arguing that a clean, conducive environment is essential for enhancing feed efficiency and preserving meat quality. the farm environment enhances the correlation between feed efficiency and meat quality. the findings presented in this study are consistent with the findings of zampiga et al. (2020), who assert that the presence of a sustainable farm environment positively influences the relationship between feed efficiency and meat quality. the findings of the study suggest that the farm environment plays a crucial role in moderating the relationship between feed quality and meat quality. the results discussed here are similar to those from a study by grzybowska-brzezińska, banach, and grzywińskarąpca (2023), which talks about how important it is to have an efficient farming environment to make sure the quality of animal feed and, in turn, the quality of meat. the research by baldi, soglia, and petracci (2020), which claims that the presence of a sustainable farm environment enhances the association between feed quality and meat quality, is consistent with the findings presented here. implications poultry farming has emerged as a prominent business in contemporary times, serving to fulfil dietary requirements and fostering economic development. the present article holds significance due to its provision of guidance aimed at enhancing meat quality, thereby fostering the advancement of poultry farming. to enhance the production of superiorquality meat, it is imperative to optimise the efficacy of farm management study guides. the study additionally asserts that it is imperative to recognise and enhance feed efficiency to achieve superior outcomes in meat production. the article additionally posits that effective farm management necessitates the prioritisation of feed quality to achieve highquality meat production. it is recommended that sustainability be integrated into the agricultural setting to enhance farm management practices and ultimately yield high-quality meat products. the study also suggests that the farm environment should adhere to health preservation standards. this would result in improved feed efficiency and enhanced meat quality. furthermore, the research indicates that the agricultural setting should possess qualities that are efficient, innovative, and environmentally sustainable. this would compel management to enhance the quality of feed and subsequently improve the quality of meat. the study provides guidance to regulatory bodies in the formulation of regulations pertaining to the enhancement of meat quality through the implementation of effective farm management practices, optimisation of feed efficiency, and ensuring high standards of feed quality. conclusion the objective of this study was to investigate the impacts of farm management practices, feed efficiency, and feed quality on the quality of meat. one of the research objectives was additionally to examine the influence of the farm environment on the interplay among farm management, feed efficiency, feed quality, and meat quality. data from indonesia was collected using a survey agbioforum, 25(1), 2023 | 161 astiti, rejeki, mardewi — business analysis of kereman cow meet quality following the covid-19 pandemic methodology that involved the use of structured questionnaires. upon subjecting the data to various analytical techniques, it was observed that there exists a positive correlation between farm management, feed efficiency, and feed quality with regards to meat quality. the findings of the study suggest that the implementation of efficient farm management practices has the potential to mitigate pollution in the resources and processes associated with poultry farming. therefore, it is possible to enhance the production of meat with improved quality. the findings indicate that the implementation of efficient management practices in feed production can lead to improved health outcomes in chickens, potentially resulting in the production of high-quality meat. the study additionally determined that the implementation of feed maintenance practices on farms contributes to the effective management of disease outbreaks among chickens. therefore, the production of high-quality meat can be achieved. the findings of the study also indicate that the farm environment plays a crucial role in moderating the relationship between farm management, feed efficiency, feed quality, and meat quality. the implementation of an efficiently organised and environmentally sustainable farm environment leads to enhanced effectiveness in farm management, improved feed efficiency, and enhanced feed quality. consequently, these factors collectively contribute to the production of higher-quality meat. limitations the study exhibits certain limitations and necessitates further enhancements. in the present study framework, a restricted set of factors, namely farm management, feed efficiency, and feed quality, are identified as the primary determinants influencing the quality of meat. in addition to meat quality, firm size, innovation, and human resource efficiency are also influential factors. however, it is widely agreed upon, and there is a consensus among scholars that there is no debate regarding this matter. it is anticipated that future researchers will engage in scholarly discourse regarding the correlation between these factors and the quality of meat. furthermore, in this study, the authors introduce a sole moderator into the research framework. to provide a more comprehensive understanding of the interplay between farm management, feed efficiency, feed quality, and meat quality, it is imperative for researchers to also account for the potential mediating factors involved. references alagawany, m., elnesr, s., & farag, m. 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(2020). muscle abnormalities and meat quality consequences in modern turkey hybrids. frontiers in physiology, 11, 554. doi: https://doi.org/10.3389/fphys.2020.00554 https://doi.org/10.1155/2021/8381849 https://doi.org/10.1016/j.jretconser.2020.102247 https://doi.org/10.1007/978-3-031-27911-9_16 http://dx.doi.org/10.22004/ag.econ.335422 https://doi.org/10.3382/ps/pey062 https://doi.org/10.3389/fphys.2020.00554 agbioforum, 25(1): 97-106. ©2023 agbioforum discussion on the coordinated development mode of urbanization and agricultural economy in china's rural areas jinyu zhang department of geography, faculty of arts and social sciences, university of malaya 50603 kuala lumpur, malaysia. email: jinyuzhang996@gmail.com mariney mohd yusoff department of geography, faculty of arts and social sciences, university of malaya 50603 kuala lumpur, malaysia. email: mariney@um.edu.my tengku adeline adura tengku hamzah department of geography, faculty of arts and social sciences, university of malaya 50603 kuala lumpur, malaysia. email: adelineadura@um.edu.my agricultural economy is a cornerstone of global development and sustainability, as it not only provides food security but also drives rural and urban livelihoods, shapes trade relations, and impacts ecosystems, making it an essential component of the world's socio-economic and environmental fabric. the present research explored the coordinated growth pattern of urbanization and the agricultural economy in rural china, with a particular emphasis on the role of climate change and urban development as mediators. the research collected data from 329 farmers and inhabitants of shanghai, china's urban regions, using partial least squares structural equation modeling (pls-sem). the study findings highlighted that attitudes toward urbanization development have a significant positive impact on agricultural productivity, which is mediated by both climate change and urbanization. furthermore, the willingness to consume and willingness to live sub-dimensions had a greater positive impact on agricultural productivity than willingness to travel. the sub-dimension of urban economic development was more effective at mediating than urban social development. the present study has several policy and practice implications, including the need to promote a more coordinated development mode that considers the interconnected factors of urbanization, agriculture, and climate change. keywords: agricultural economy, agricultural productivity, attitude towards urbanization development, urban development, urban economic development, urban social development. 1. introduction urbanization is not just a trend, but a transformative force that shapes the world we live in today and will continue to have a significant impact on our future, from the way we live, work and interact, to the challenges we face as a global society (danso et al., 2021; nguyen, virdis, & vu, 2023). urbanization has been a major driver of china's economic progress and development in recent decades, but it has also posed challenges to the country's agricultural sector (ghose, 2014). rapid urbanization has resulted in the encroachment of agricultural land, a reduction in the availability of water resources, and environmental pollution (danso et al., 2021; nguyen, virdis, & vu, 2023). simultaneously, urbanization has created new opportunities for agricultural development through increased market access, technological innovation, and the introduction of new business models (raihan et al., 2022). understanding the factors that affect agricultural productivity in rural areas is essential for achieving coordinated development between urbanization and agriculture (s. hu et al., 2022). the goal of this study was to find out how rural chinese people feel about urbanization, climate change, economic growth in cities, social development in cities, and agricultural output (ahmad et al., 2020; chen, liu, & yu, 2022). the attitude toward urbanization development, which includes three sub-dimensions: willingness to consume, willingness to travel, and willingness to live, is the study's independent variable. these dimensions are critical in understanding how open individuals are to the urban lifestyle and how it affects agricultural productivity (specht et al., 2014; tyrväinen & väänänen, 1998). previous research has shown that attitudes toward urbanization development can have a significant impact on rural agricultural productivity (tang & zhu, 2020). according to studies, farmers who have a more positive attitude toward urbanization are more likely to adopt modern agricultural practices and technologies, which can boost productivity (agbenyo et al., 2022; guo, chen, & zhang, 2022; serebrennikov et al., 2020). climate change is a major factor influencing agricultural productivity in china's rural areas, as changes in temperature and precipitation patterns can result in crop failure and lower yields (shahzad et al., 2021; song et al., 2022). in contrast, urban development can have both positive and negative effects on agricultural productivity, depending on how much it promotes the development of the local economy and social infrastructure (y. liu, liu, & zhou, 2021; yanwei zhang & xie, 2019). climate change and urbanization have also been shown in previous research to have a significant impact on agricultural productivity (kogo, kumar, & koech, 2021; teuling et al., 2019). climate change, for example, has been shown in studies to reduce crop yields in china's rural areas, whereas urban development can increase demand for agricultural products and improve farmers' market access (kogo, kumar, & koech, 2021; lobell & gourdji, 2012). overall, this study seeks to fill a gap in the literature by investigating the relationship between rural chinese attitudes toward urbanization, climate change, urban economic development, urban social development, and agricultural productivity. this study can provide policymakers and stakeholders with insights on how to promote sustainable development and achieve coordinated development between urbanization and agriculture by mailto:jinyuzhang996@gmail.com mailto:mariney@um.edu.my mailto:adelineadura@um.edu.my agbioforum, 25(1), 2023 | 98 zhang et al. — discussion on the coordinated development mode of urbanization and agricultural economy in china's rural areas identifying the key factors that affect agricultural productivity. 2. literature review and hypotheses development agricultural productivity agricultural productivity is a measure of the efficiency with which agricultural crops or goods are produced (hutchings et al., 2020). agriculture is an important industry in china, contributing significantly to the country's economy (l. zhang et al., 2019). agriculture is a significant source of income in rural areas, and it plays an important role in food security. climate change and urbanization, for example, have an impact on agricultural productivity (kogo, kumar, & koech, 2021). several studies have been conducted to determine the factors influencing agricultural productivity in china's rural areas (mao et al., 2021). y. hu et al. (2022) discovered that land use, infrastructure, and technological progress are the most important factors influencing agricultural productivity. another study, conducted by alban singirankabo and willem ertsen (2020), discovered that rural education and land resources have a positive impact on agricultural productivity. 2.1 attitude towards urbanization development the attitude toward urbanization development is an important variable in this study because it influences urbanization and agricultural development coordination (yushi zhang et al., 2022; zhou et al., 2022). willingness to consume, travel, and live in cities all contribute to one's attitude toward urbanization development (sicheng wang et al., 2020). these three variable sub-dimensions represent various aspects of urbanization development that may have an impact on agricultural productivity (ren et al., 2023). consumption willingness in urban areas is related to demand for agricultural products in urban markets (m. zhang, li, & bai, 2020). as more people move to cities, the demand for agricultural products rises, potentially leading to higher agricultural productivity (sitong wang et al., 2021). the willingness to travel in urban areas represents agricultural products' accessibility to urban consumers (inwood & sharp, 2012). agricultural products can be easily transported to urban areas if transportation infrastructure is developed in rural areas, which can increase agricultural productivity (prus & sikora, 2021). finally, the willingness to live in cities is related to the migration of rural residents to cities, which can result in a reduction in agricultural labor and agricultural productivity (ge et al., 2020; lyu et al., 2019). 2.2 climate change climate change is a significant variable in this research because it affects agricultural production both directly and indirectly (praveen & sharma, 2019). temperature, precipitation, and soil quality changes can all have an immediate effect on agricultural output (corwin, 2021). climate change can have a secondary impact on agricultural output by altering insect and disease frequency and water supply (skendžić et al., 2021). several studies have been carried out to ascertain the impacts of climate change on agricultural output in rural china (chandio et al., 2020). climate change has a detrimental influence on agricultural output, according to aryal et al. (2020) and adaptation methods are needed to mitigate these impacts. bocchiola et al. (2019) found that the impacts of climate change on agricultural productivity varied by location and that various adaptation methods are needed for different regions. 2.3 urban development another important variable in this study is urban development, which has an indirect impact on agricultural productivity. there are two sub-dimensions of urban development: urban economic development and urban social development (marques, santos, & duarte, 2020). the demand for agricultural products in urban areas influences urban economic development (fan et al., 2019). if urban economic development is strong, demand for agricultural products may rise, potentially leading to higher agricultural productivity (raihan & tuspekova, 2022). the migration of rural residents to urban areas is linked to urban social development (østby, 2016). if urban social development is high, rural residents may migrate to cities, resulting in a decrease in agricultural labor and a decrease in agricultural productivity (villaronte, yap, & rosete, 2022). several studies have been conducted to determine the effects of urban development on agricultural productivity in rural china (wei et al., 2021). zhong et al. (2020) discovered that urbanization reduces agricultural productivity and that coordination between urbanization and agriculture is required to mitigate this impact. another study, conducted by raihan and tuspekova (2022), discovered that urbanization has both positive and negative effects on agricultural productivity, and that coordination between urbanization and agriculture is required to ensure long-term development. aside from the direct effects of urbanization and attitudes toward urbanization on agricultural productivity, there is evidence of an indirect effect via climate change (lu et al., 2022). climate change is an important mediator variable in this study because it has a significant impact on agricultural productivity, and urban development and attitudes toward urbanization can influence climate change through a variety of channels (abubakar & dano, 2020). for example, urbanization can increase greenhouse gas emissions, worsening climate change and reducing agricultural productivity (qureshi et al., 2016). furthermore, urbanization can result in land use changes and deforestation, both of which have negative effects on the environment and climate (how jin aik et al., 2021). climate change, according to studies, is a significant danger to agricultural productivity in china, and it is anticipated to deteriorate in the future (x. liu et al., 2022; malhi, kaur, & kaushik, 2021). climate change affects farming output through a number of processes, including shifting precipitation patterns, increased frequency and intensity of extreme weather events, and shifting temperature regimes (x. agbioforum, 25(1), 2023 | 99 zhang et al. — discussion on the coordinated development mode of urbanization and agricultural economy in china's rural areas liu et al., 2022). these shifts have the potential to reduce agricultural yields, decrease water supply, and raise pest and disease prevalence (rosenzweig et al., 2001). climate change can also have an impact on urban development and attitudes toward urbanization (blekking et al., 2022). extreme weather events and natural disasters, for example, can cause significant damage to urban infrastructure, resulting in a decline in economic and social development in cities (salimi & al-ghamdi, 2020). climate change can also raise public awareness of environmental issues, leading to greater support for policies that promote sustainable urban development and a shift toward a more environmentally friendly lifestyle (mcdonald, 2009). finally, this literature review emphasizes the significance of the variables studied and their interconnections. the review found that urbanization, attitudes toward urbanization, and climate change are all significant factors influencing agricultural productivity in china's rural areas. climate change is a critical mediator variable in this relationship, as urbanization and attitudes toward urbanization can have both direct and indirect effects on agricultural productivity. this study provides policymakers and stakeholders in the agricultural and urban development sectors with insights into the interconnections between urbanization, climate change, and agricultural productivity in china's rural areas, as well as policies that promote sustainable and coordinated development across these sectors. h1: there is a positive relationship between attitude towards urbanization development and agricultural productivity in rural areas of china. h2: climate change has a negative effect on agricultural productivity in rural areas of china. h3: urban development has a positive effect on agricultural productivity in rural areas of china. h4: climate change mediates the relationship between attitude towards urbanization development and agricultural productivity in rural areas of china. h5: urban development mediates the relationship between attitude towards urbanization development and agricultural productivity in rural areas of china. figure 1. conceptual model 3. methodology 3.1sampling and procedure a cross-sectional survey was conducted in this study to collect data from farmers and residents of shanghai, china's urban areas. the survey questionnaire was developed in response to the study's variables, which included agricultural productivity, attitudes toward urbanization development (with three subdimensions), climate change, and urban development. (with two sub dimensions). face-to-face interviews with respondents were used to collect data. the sample size for this study was 329 individuals, chosen using a stratified random sampling technique. the strata were determined by the respondents' location, either rural or urban. the respondents had to be over the age of 18 and live in either the rural or urban areas of shanghai to be eligible. the questionnaire was pretested to assure the reliability and validity of the data. the questionnaire contained closed-ended questions. the 5-point likert scale was used to create the closed-ended queries, with 1 indicating strongly disagree and 5 indicating strongly concur. the purpose of the open-ended questions was to elicit qualitative data from respondents. analyzing the data with pls-sem 4.0 software. this method is appropriate for analyzing complex causal relationships between latent and observed variables. smartpls 4.0 software was used to analyze the data. data screening, exploratory factor analysis, reliability analysis, validity analysis, structural model assessment, and hypothesis testing were all steps in the data analysis process. to evaluate the data's reliability and validity, cronbach's alpha, composite reliability, and average variation were taken. (ave). the assumptions were agbioforum, 25(1), 2023 | 100 zhang et al. — discussion on the coordinated development mode of urbanization and agricultural economy in china's rural areas evaluated using 5,000 bootstrapping iterations. during the research process, ethical considerations were taken into account. before collecting data, all respondents provided informed consent. the respondents' anonymity and confidentiality were guaranteed, and their personal information was kept strictly confidential. overall, the research methodology was designed to ensure the reliability and validity of the data collected, as well as to test the hypotheses using appropriate statistical techniques. 3.2 measurement tools there are measurement scales for a number of different things, such as agricultural productivity, attitude towards urbanization development, urban development, and climate change. with the exception of the control variables, participants' answers were also graded on a fivepoint likert scale ranging from (strongly agree 1, to 5 strongly disagree). this study used a 12-items scale to measure agricultural productivity (teno & cadilhon, 2016). whereas for attitude towards urbanization development a nine item scale has been used, which is adopted from the study of lin et al. (2022). a eight items scale of semenza, ploubidis, and george (2011) was used to collect the data on climate change. a nine items scale of lin et al. (2022) was used to collect the data on urban development (li, 2021) table1: loadings, composite reliability, and average variance extracted item loading cronbach's alpha composite reliability average variance extracted u rb a n d e v e lo p m e n t 0.812 0.860 0.569 urban economic development ue2 0.793 0.796 0.881 0.712 ue3 0.867 ue4 0.868 urban social development us1 0.894 0.885 0.921 0.745 us2 0.865 us3 0.854 us4 0.838 agricultural development ad1 0.798 0.894 0.914 0.519 ad10 0.594 ad11 0.572 ad2 0.787 ad4 0.627 ad5 0.800 ad6 0.804 ad7 0.766 ad8 0.805 ad9 0.583 climate change cc1 0.840 0.917 0.934 0.640 cc2 0.851 cc3 0.633 cc4 0.649 cc5 0.849 cc6 0.854 cc7 0.813 cc8 0.871 a tt it u d e t o w a rd s u rb a n iz a ti o n d e v e lo p m e n t 0.881 0.905 0.516 willingness to consume wc1 0.683 0.818 0.800 0.576 wc2 0.672 wc3 0.900 willingness to live wl1 0.832 0.715 0.841 0.639 wl2 0.834 wl3 0.728 willingness to travel wt1 0.794 0.786 0.875 0.701 wt2 0.859 wt3 0.857 the analysis of the study indicates that all variables, including urban development, agricultural development, climate change, and attitude towards urbanization development, have acceptable composite reliability and cronbach's alpha values, indicating that the data collected for these variables are reliable. the average variance extracted for all variables except agricultural development is acceptable, indicating that the data collected for these variables are valid. the loading values for all items are also satisfactory, indicating that each item contributes to the corresponding variable. among the sub-dimensions of urban development, urban economic development has a higher average variance extracted than urban social development, indicating that urban economic development has a stronger impact on urban development. similarly, among the sub-dimensions of attitude towards urbanization development, willingness to travel has a higher average variance extracted than willingness to consume and willingness to live, indicating that willingness to travel has a stronger impact on attitude towards urbanization development. 3.3 statistical analysis this study has analyzed the model fitness of this research proposed model (see table 2). the results of the study analysis indicate that the model has good predictive ability for most of the variables. the r-square values for agbioforum, 25(1), 2023 | 101 zhang et al. — discussion on the coordinated development mode of urbanization and agricultural economy in china's rural areas agricultural development, urban social development, willingness to travel, willingness to consume, and willingness to live are all above 0.6, indicating that a large proportion of the variance in these variables can be explained by the model. the q²predict values for all variables except climate change are also positive, indicating that the model has a good ability to predict outof-sample data. the rmse and mae values for agricultural development are both relatively low, indicating that the model has good accuracy in predicting this variable. the mae values for urban development, urban economic development, urban social development, willingness to travel, and willingness to live are also relatively low, indicating good accuracy in predicting these variables. however, the rmse values for urban development and urban economic development are relatively high, indicating that the model has some moderate level of predicting ability. overall, the study findings suggest that the model has good predictive ability for most of the variables studied. however, there is still some room for improvement in predicting urban development and urban economic development. these results can provide valuable insights for policymakers and practitioners working in the field of agricultural economics in china, as they can use this information to develop strategies for promoting coordinated development between urbanization and agricultural economy in rural areas. table 2: model fit predictive relevance of model q²predict rmse mae r-square agricultural development 0.321 0.044 0.055 0.668 climate change 0.185 urban development 0.220 urban economic development 0.598 urban social development 0.674 willingness to travel 0.828 willingness to consume 0.742 willingness to live 0.851 the htmt (heterotrait-monotrait) ratio results for the study showed that there was a good level of discriminant validity between the constructs. the htmt ratio for the attitude towards urbanization development and agricultural development constructs was 0.544, indicating that there may be some overlap between these constructs. similarly, the htmt ratio between climate change and agricultural development was 0.763, and between climate change and attitude towards urbanization development was 0.483, suggesting good level of discriminant validity between these constructs as well. the htmt ratio for urban development and attitude towards urbanization development was 0.685, while the ratio for urban development and climate change was 0.539, indicating some level of discriminant validity between these constructs. however, the htmt ratio for urban development and agricultural development was 0.393, which suggests that there is a good level of discriminant validity. overall, the htmt results suggest that a good level of discriminant validity exists among these variables. the correlation was found with the htmt method, and the results are shown in table 3. table 3: htmt discriminant validity 1 2 3 4 agricultural development attitude towards urbanization development 0.544 climate change 0.763 0.483 urban development 0.685 0.539 0.393 figure 2: structural model agbioforum, 25(1), 2023 | 102 zhang et al. — discussion on the coordinated development mode of urbanization and agricultural economy in china's rural areas 3.4 path model analysis the path analysis results of the study indicate significant relationships between the variables. attitude towards urbanization development was found to have a positive and significant effect on agricultural development with a tvalue of 2.980 and a p-value of 0.045. climate change also had a significant positive impact on agricultural development with a t-value of 9.743 and a p-value of 0.000. similarly, urban development was found to have a significant positive effect on agricultural development with a t-value of 9.493 and a p-value of 0.000. the relationship between attitude towards urbanization development and agricultural development was further explained by the mediating effect of climate change and urban development. the results show that the indirect effect of attitude towards urbanization development on agricultural development through climate change was significant with a t-value of 4.466 and a p-value of 0.000. the indirect effect of attitude towards urbanization development on agricultural development through urban development was also found to be significant with a tvalue of 5.189 and a p-value of 0.000. overall, the study findings suggest that coordinated development between urbanization and agricultural economy is important for agricultural productivity in rural areas of china. table 4: path analysis original sample (stdev) t statistics p values attitude towards urbanization development → agricultural development 0.362 0.154 2.980 0.045 climate change → agricultural development 0.554 0.057 9.743 0.000 urban development → agricultural development 0.390 0.041 9.493 0.000 attitude towards urbanization development → climate change → agricultural development 0.238 0.053 4.466 0.000 attitude towards urbanization development → urban development → agricultural development 0.183 0.035 5.189 0.000 4. discussion the findings of this study support the hypotheses proposed about the relationships between the variables. according to the findings, attitudes toward urbanization development have a significant impact on agricultural productivity in rural china. the willingness to consume, travel, and live all had a positive impact on agricultural productivity. this suggests that farmers and rural residents who are positive about urbanization development are more likely to engage in agricultural activities, which increases agricultural productivity. furthermore, the study discovered that climate change mediated the relationship between attitudes toward urbanization and agricultural productivity. this suggests that climate change may explain some of the impact of attitudes toward urbanization development on agricultural productivity. climate change can affect agricultural productivity directly through changes in temperature, rainfall, and other weather-related factors, as well as indirectly through changes in soil quality and resource availability. moreover, the study discovered that urban development mediated the relationship between attitudes toward urbanization development and agricultural productivity. both urban economic development and urban social development were found to have a positive impact on agricultural productivity. this suggests that urban development can have a positive impact on rural areas by increasing agricultural productivity through improved infrastructure, access to resources, and markets. overall, the study's findings shed light on the links between urbanization, agriculture, and climate change in china's rural areas. according to the findings, a coordinated approach to urbanization and agricultural development is required to ensure long-term and equitable economic growth in rural areas. policies that encourage positive attitudes toward urbanization and support both urban and rural development may be beneficial for increasing agricultural productivity and mitigating the effects of climate change on agricultural activities. 4.1theoretical and practical implications to begin, the study emphasizes the significance of coordinated development between urbanization and agricultural economy in rural china. given china's rapid urbanization and agricultural modernization, policymakers should focus on developing policies that promote urbanrural integration and facilitate the balanced development of both sectors. this can include encouraging agricultural innovation, increasing rural infrastructure investment, and encouraging the integration of urban and rural industries. second, the study emphasizes the significance of addressing climate change as a moderator variable in the relationship between attitudes toward urbanization development and agricultural productivity. climate change should be given more attention by policymakers and practitioners, and policies to mitigate its impact on agricultural productivity in rural areas should be developed. this can include promoting sustainable land use, developing climate-smart agriculture practices, and investing in renewable energy. third, the study emphasizes the role of urban development as a moderator variable in the relationship between attitudes toward urbanization and agricultural productivity. policymakers and practitioners should prioritize urban development while also considering the impact on agricultural productivity. this can include developing policies that promote urban-rural integration, promoting sustainable urbanization, and assisting rural residents in participating in urban economic development. finally, the findings of this study can be used to guide future agricultural economics research. researchers can expand on this research by looking into other factors that influence the relationship between urbanization and agricultural economy in rural agbioforum, 25(1), 2023 | 103 zhang et al. — discussion on the coordinated development mode of urbanization and agricultural economy in china's rural areas china, such as government policies, socioeconomic factors, and cultural norms. future research can also look into the impact of coordinated development between urbanization and agriculture on other outcomes like rural poverty reduction and environmental sustainability. overall, this study sheds light on the coordinated development of urbanization and agriculture in china's rural areas. the study's implications can help policymakers, researchers, and practitioners develop policies and interventions that promote the long-term development of both sectors. 4.2 limitations and future directions despite the study's significant findings, several limitations should be considered. to begin, the research data were gathered in a specific region of china, which may limit the findings' generalizability to other regions with different socioeconomic and cultural backgrounds. as a result, future research could increase the sample size and geographic location to improve the findings' generalizability. second, the data was gathered through self-reported questionnaires, which could have resulted in response bias and social desirability bias. to improve the validity of the findings, future studies could use mixed methods, such as interviews and observations. third, this study only looked at a small number of variables related to urbanization and agricultural productivity. other variables, such as government policies, cultural attitudes, and technological advancements, could be considered in future studies to provide a more comprehensive understanding of the complex relationship between urbanization and agricultural productivity. in terms of future directions, this study could serve as a foundation for additional research in urbanization and agricultural economics. future research could look into implementing the proposed coordinated development mode in other regions and assessing its effectiveness in promoting sustainable urbanization and agricultural development. future research could also look into the link between other environmental factors and agricultural productivity, such as soil quality, water availability, and air pollution. furthermore, future research could look into how urbanization and agricultural development affect other sectors of the economy, such as industry and services. the study's limitations include the use of a relatively small sample size and the possibility of response bias. future research could investigate additional variables and increase the sample size to improve the findings' generalizability. finally, this study provides valuable insights into the coordinated development of urbanization and agricultural economy in china's rural areas, emphasizing the importance of attitude toward urbanization development as well as the mediating role of climate change and urban development in enhancing agricultural productivity. overall, this study adds significantly to the body of knowledge on urbanization and agricultural productivity in china. however, the study's limitations highlight the need for additional research in this area, and future studies could build on this research's findings to provide a more comprehensive understanding of the relationship between urbanization and agricultural development. 5. conclusion finally, the purpose of this research was to investigate the coordinated development mode of urbanization and agricultural economy in china's rural areas. the study's findings revealed a significant relationship between chinese attitudes toward urbanization development, climate change, urban economic development, urban social development, and agricultural productivity. the study's findings have a number of implications for policymakers, researchers, and practitioners. to begin, it is critical to recognize the significant role of urbanization in shaping china's agricultural sector and agricultural productivity. this study emphasizes the importance of developing a coordinated approach to urbanization and agricultural development, taking into account the impact of climate change and urban development on agricultural productivity. second, policymakers and practitioners should recognize the importance of developing economically and socially developed urban areas, as these factors can positively impact agricultural productivity. finally, because urbanization has a significant impact on agricultural productivity, this study emphasizes the importance of understanding people's attitudes toward urbanization development. finally, this study adds to the existing literature on the coordinated development of urbanization and agricultural economy in rural china. this study uses pls-sem to provide a robust analysis of the relationship between the variables of interest. the study's findings have several implications for policymakers, researchers, and practitioners working to develop a sustainable and coordinated approach to rural urbanization and agricultural development in china. references abubakar, i. r., & dano, u. l. 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(2022), gic (ghc, gsc, and grc) can foster the growth of sustainability (ep, enp, and sp). similarly, enp indicates an organization's capacity to reduce air emissions, hazardous materials, energy consumption, material practices, and adherence to environmental regulations (laosirihongthong et al., 2013). the final dimension (sp) of sustainability emphasizes an organization's capacity to increase social welfare and benefit, employee safety, and community health risks (paulraj, 2011). the contribution of lmcs to the economic and environmental sustainability of saudi arabia is substantial. in the literature, a direct association of gic with ep, enp, and sp is observed in different contexts (malik et al., 2020; yusliza et al., 2020; benevene et al., 2021; minoja and romano, 2021); however, a lack of evidence is found with the claim of gic and gc towards sustainability specifically in saudi arabian lmcs in an integrated manner (ullah et al., 2022) contextually, lmcs are ignored because this sector faces numerous obstacles, such as an inhospitable business environment, a lack of financial support, inadequate government support, and environmental issues (ahmad, 2012). recognizing the importance of gic and gc to sustainability, we formulated the following research questions with the aid of the literature: q1: what is the role of gic and gc in developing sustainability among the saudi arabian employees of lmcs? q2: how gc develops the relationship between gic and sustainability among the saudi arabian employees of lmcs? the study would provide policymakers with guidelines for mailto:nabdelwahed@kfu.edu.sa mailto:mdoghan@kfu.edu.sa mailto:bahadur.ali@scholars.usindh.edu.pk agbioforum, 24(3), 2022 | 98 abdelwahed, al doghan and soomro. — green intellectual capital and sustainability in manufacturing industries in saudi arabia addressing environmental, organizational, and sustainability concerns with the aid of gic and fostering a conducive gc. in addition, the study will aid in comprehending the significance of gic, gc, and sustainability in fostering a healthy performance environment in which the economy can flourish and develop exponentially. the research would aid in resolving the problems that existed among employees in the workplace. lastly, the findings would increase the depth of the literature by adding empirical confirmation from saudi arabian lmc employees. 2. literature review and model investigating the effects of gic on organizational sustainability is crucial in light of the rapidly worsening environmental issues (yusoff et al., 2019). the performance has a high standing, has been the subject of much scholarly discussion, and was considerably predicted by internal green integration and supplier sustainability (shah and soomro, 2021). an analysis demonstrates a predictive and advantageous influence on innovation and organizational learning using the ep using structural equation modeling (sem) (soomro et al., 2020). with the help of green innovation (gi), gic impacts the environment and the economy. the ghc, grc, and gsc components of the gic have an impact on a firm's performance, and the mediating role of gi helps to illuminate these correlations (wang and juo, 2021). entrepreneurial orientation has a beneficial impact on strategic entrepreneurship and organizations' financial performance, according to soomro and shah (2020). ullah et al. (2022) also note that gic and gi considerably impact company sustainability. however, gsc has a moderating effect on the sustainability of pakistani commercial organizations. gi is linked to green employee involvement and green performance management (shah and soomro, 2022). in malaysian manufacturing enterprises, gi has a relevant and significant association with company sustainability, according to suki et al. (2022). similarly, nisar et al.'s study from 2021 proposes green training and development as a crucial step in forming gic. it encourages environmentally friendly behaviors in the hotel sector. haldorai et al. (2022) claim that the green commitment of senior management and gic directly impacts green hrm and hotel enp. these further bolster the mediation's findings. gic impacts enp and environmental consciousness in developed situations. the connection between gic and enp is also mediated by environmental consciousness (boso et al., 2022). gi and green hrm are established through organizational environmental culture in saudi arabia's smes. green hrm and gi are also important indicators of environmental sustainability and ep. the linkages between organizational environmental culture, environmental sustainability, and ep are positively shaped by gi and green hrm (al doghan et al., 2022). sustainability and environmentalism provide substantial problems and issues for organizations. the investigation by malik et al. (2020) highlights the significant role that green hrm plays in creating environmental business strategies using cross-sectional data. the results also imply that ghc, gsc, and gsc are significant and proficient sustainability analysts for the company. the study also raises the possibility that environmental initiatives directly affect enp while potentially mitigating the link between gi and enp in large manufacturing businesses (kranti k. dugar, 2022). they provide a boost to growth and a path to sustainability in smes. additionally, in the saudi arabian city of riyadh, the acquisition of green human resources is only marginally correlated with training, development, and a focus on green human resources (faisal and naushad, 2020). alnaim et al. (2022) claim that gi is a key predictor of green inventiveness in saudi arabia. therefore, we assert some gaps based on the voluminous literature mentioned above. in contrast to the setting of saudi arabia, the literature first shows a direct link between gic and ep, enp, and sp in other contexts (malik et al., 2020; yusliza et al., 2020; benevene et al., 2021; minoja and romano, 2021). second, unlike gic, ep, enp, and sp are not also examined for the gc factor (ullah et al., 2022; suki et al., 2022). third, prior investigations (baharum and pitt, 2009; yadiati, 2019) did not identify gc as a mediator between gic, ep, enp, and sp. despite their more significant contribution to saudi arabia's economic development (varshney et al., 2013), lmc personnel still need more regard (mellahi, 2006; ahmad, 2012; al-dhabaan, 2021). we created figure 1 to investigate the employees of lmcs in saudi arabia based on the aforementioned existing links and gaps in the literature. 3. hypotheses development 3.1 green intellectual capital and sustainability there is a rising trend of increasing gic in treating environmental problems (yusoff et al., 2019). the gsc and grc elements of gic, i.e., the sustainability of business sustainability, are essential. according to malik agbioforum, 24(3), 2022 | 99 abdelwahed, al doghan and soomro. — green intellectual capital and sustainability in manufacturing industries in saudi arabia et al. (2020), gic (ghc, gsc, and grc) and green hrm practices, i.e., recruiting and selection and green rewards, impact a firm's sustainability. similarly, to this, the study by benevene et al. (2021) shows that gic was first introduced in 2008 and has since become a growth agent. it gives organizations a solid basis for fostering sustainability. gic plays a significant function in boosting sustainable performance in manufacturing companies. additionally, it has a favorable impact on ep, enp, and sp (yusliza et al., 2020). wang and juo's (2021) empirical analysis investigate the impact of gic on environmental performance with the aid of the mediation of green innovation among staff members of high-tech companies. the study's findings highlight the significance of the relationships between ep, green, and performance for gic characteristics such as ghc, gsc, and grc. additionally, it is discovered that the green innovation factor acts as a mediator between ep, gsc, and green performance. their intellectual capital improves the performance of italian waste management companies. the complete range of governance and management advancements, including those that link intellectual capital, incorporate responsibility for sustainability (minoja and romano, 2021). munawar et al. (2022) assessed respondents from various occupation levels, including top and middle management, entry-level management, and frontline employees from many hotel chains in pakistan. the review points to the positive and active contribution of green hrm to green business innovation. additionally, ghc and environmental knowledge both play a moderating role. the empirical findings of fatima et al. (2019) show that aggregate energy use, renewable energy, and human capital all have bidirectional causal relationships with ep. through green hrm, the ghc and organizational enp favorably correlate. besides grc, two gic dimensions in iranian public firms, namely ghc and gsc, are favorably connected with ep and enp (asiaei et al., 2022). nisar et al. (2021) claim that green training and development are the most effective strategies to increase managers' proenvironmental attitudes and intellectual capital. shah et al. (2021) asserts that there is a substantial relationship between relational, green capital, and enp based on data from hotels in bahrain and the united arab emirates. additionally, the study discovers a significant correlation between environmental responsibility and enp. green hrm practices are more prevalent in palestine than in a company. similarly, green hrm and hotel enp correlate directly with gic and top management green commitment (haldorai et al., 2022). sheikh (2022) contends that ghc and gsc significantly impact social innovation, whereas grc has little impact. similarly, grc and ghc have a favorable impact on green hrm. economy, society, and environmental performance are significantly associated with green hrm. according to yong et al. (2022), grc improves sustainability (ep, enp, and sp). agyabeng-mensah et al. (2021), on the other hand, do not discover a substantial impact of ghc on economic performance, sp, or green competitiveness among sme managers in ghana. according to yusoff et al. (2019), ghc is not supported by the stability and sustainability of the company. only when enp measurement occurs as a mediating construct does the grc impact enp (asiaei et al., 2022). as a result, aside from its confirmation in saudi arabia, the literature claimed that most studies showed a positive connection between gsc and ep, enp, and sp. hence: h1a. ghc positively and significantly predicts ep. h1b. ghc positively and significantly predicts enp. h1c. ghc positively and significantly predicts sp. with the help of green innovation, the three components of gic significantly impact green and ep. the gsc accurately forecasts ep, enp, and sp performance (wang and juo, 2021; asiaei et al., 2022). according to the social capital theory, integrating green suppliers significantly impacts social capital growth, which encourages ep and enp. however, ghc and grc forecast green performance, and only ghc analyses ep in al issa et al. (2022). environmental corporate social responsibility considerably impacts the structural, relational, and human capital of green it in taiwan. however, according to asiaei et al. (2017), gsc does not forecast economic sustainability or ep. according to yusoff et al. (2019), gsc and grc have a crucial role in predicting the viability of malaysian smes. according to asiaei et al. (2022), businesses interpret gic into enhanced organizational performance in the form of ep and enp using enp assessment. the pls-sem research by yadiati (2019) strongly suggests that gsc significantly contributed to the development of enp, resulting in a unit intensification of enp of multinational companies in indonesia. the gsc is an administrative component of organizational support and the firms' environmental response in spain's manufacturing companies (amoressalvadó et al., 2021). based on the association, we recommend the following: h2a. gsc positively and significantly predicts ep. h2b. gsc positively and significantly predicts enp. h2c. gsc positively and significantly predicts sp. the sic dimensions received a lot of consideration and importance, and this focus has a natural effect on how well businesses execute. additionally, grc and gsc mediate the impact of green supplier integration on ep and enp. sheikh (2022) claims that social innovation affects gsc and gsc, while grc is not proven to be a significant predictor of social innovation. in light of the connections and significance of grc, we suggested the following: h3a. grc positively and significantly predicts ep. h3b. grc positively and significantly predicts enp. h3c. grc positively and significantly predicts sp. agbioforum, 24(3), 2022 | 100 abdelwahed, al doghan and soomro. — green intellectual capital and sustainability in manufacturing industries in saudi arabia 3.2 green intellectual capital and green culture (gc) managers and businesses can use the gic priority to improve operating effectiveness. it aids in formulating policy, strategy, and business gc for the benefit of stakeholders and citizens. the pls-sem analysis in large industrial companies in malaysia highlights the favorable impact of ghc and grc on green hrm. yadiati (2019) asserts that organizational reputation and gic in multinational enterprises in indonesia have a positive and significant impact on the enp. the growth of links between ghc, gsc, and grc and the sustainable competitive advantage of agricultural corporations in china is noticed for applying natural resource-based theory. a mediating influence of green product and process innovation is observed (pan et al., 2021). baharum and pitt's (2009) literature research show how vital facilitation management is to performance, intellectual capital, and green strategy. the relationship between competitive advantage and green innovation strategic orientation in the vietnamese hotel business, according to wang (2022), is positively mediated by gic (ghc, gsc, and grc). although gsc was noted with a notable moderating influence on business sustainability, a significant effect of gic on business sustainability is seen in pakistani enterprises (ullah et al., 2022). green innovation and gic are complementary to company sustainability, according to suki et al. (2022). the gic is, therefore, a crucial and reliable predictor of gc expectations in the saudi context. consequently, we advise the following: h4a. ghc positively and significantly predicts gc. h4b. gsc positively and significantly predicts gc. h4c. grc positively and significantly predicts gc. 3.3 green culture (gc) and sustainability organizational gc predicts competitive advantage and green performance in industrial enterprises (wang, 2019). according to garca-machado and martnez-vila (2019), green innovation is mediating in establishing a connection between gc and enp in the state of mexico's automobile industry. according to shah et al. (2021), ecological elements, including gc, a green psychological climate, and sustainable environmental efficiency, can predict green hrm. ultimately, these results strengthen technical advancements and raise ep and sustainability. peer involvement, message credibility, leadership emphasis, and employee empowerment are the key gc enablers in chinese manufacturing organizations. gc positively mediates the interaction between green hrm and enp: green hrm, green leadership behavior, and environmental sensitivity impact gc among private sector employees in qatar. additionally, there are strong connections between gc and employees' green behavior and enp (al-swidi et al., 2021). we created: based on preexisting associations and the lack of proof in the saudi context. h5a. gc positively and significantly predicts ep. h5b. gc positively and significantly predicts enp. h5c. gc positively and significantly predicts sp. 3.4 green culture (gc) as a mediator the gc is crucial for directly and indirectly fostering significant sustainability, ep, and enp within the organizations. according to al-swidi et al. (2002), gc mediates the relationship between green leadership behavior, green hrm, environmental concern, and employees' green behavior in qatar. according to the ability-motivation-opportunity (amo) hypothesis, green organizational citizenship behavior and green human resource management are favorably connected in taiwan. additionally, there is a strong correlation between the gc and green values (hooi et al., 2022). according to sudaryati et al. (2020), green process innovation mediates environmental culture and financial performance. green core competence entirely and profoundly drives green innovation in chinese tourism. additionally, according to qu et al. (2022), gc partially modifies the relationship between green innovation and green absorptive capacity. similarly, the empirical study by muisyo et al. (2022) shows that civic organizational behavior toward the environment plays a significant and influential role in development. developing green competencies, opportunities, and motivation helps the gc grow. green hrm helps malaysian manufacturing companies foster a culture of sustainability and green innovation, showing how these concepts contribute to the organization's upgrading of enp (fang et al., 2022). similarly, shah et al.'s mediation analysis from 2021 reveals how green hrm affects gc and psychological climate. it illustrates how gc and a green psychological climate mediate environmental sustainability. gc and green psychological climate significantly mediate the connection between green hrm, ghrmp, and sustainable environmental efficiency. according to an empirical study by imran et al. (2021), green innovation and enp fully mediate the link between gc and ep in malaysian sectors. job happiness, organizational dedication, and gc impact ep (soomro and shah, 2019). considering the significance of gc as a mediator, we anticipate the following: h6a. gc mediates the relationship between ghc and ep. h6b. gc mediates the relationship between gsc and enp. h6c. gc mediates the relationship between grc and sp. 4. methods 4.1 survey strategy and tools the study's primary goal is to evaluate sustainability in terms of ep, enp, and sp through gic and to identify the gc's mediating role among saudi arabia's large manufacturing enterprises' (lmcs) workforce. because it deals with statistics and produces results that are accurate and legitimate, the study uses a survey method based on a quantitative approach, which gives it more prominence in the management and social sciences (soomro and shah, agbioforum, 24(3), 2022 | 101 abdelwahed, al doghan and soomro. — green intellectual capital and sustainability in manufacturing industries in saudi arabia 2020). additionally, quantitative assessment is a good and practical method for conserving the researchers' scarce time and resources (soomro and shah, 2021). in addition, several researchers have used the same approach in the literature to investigate sustainability through gic, including yusoff et al. (2019), yusliza et al. (2020), malik et al. (2020), benevene et al. (2021), wang and juo (2021), and asiaei et al. (2022). we conducted pilot research using 18 samples to ensure the survey's validity and reliability before moving on to collect significant amounts of data. a survey questionnaire is used in the study to gather data. the scale's items were taken from laosirihongthong et al. (2013) and paulraj (2011), two works in the field of study. we received feedback from the study participants and university lecturers, who were fully aware of the research's quantitative techniques and digital platforms during the pilot study. as a result, we improved the instrument in response to some insightful feedback and launched it for extensive data collection. 4.2 respondents are sample size saudi arabia is a developing nation contributing significantly to the world's oil production. as a result, it signals that the efforts to address the environmental and climate concerns are not being taken seriously regarding gc, ep, enp, and sp (al-gamrh & al-dharma, 2019). we chose the lmc staff members because they face the formidable difficulties of saudi arabia's and the gulf arab countries' human capital development. due to their extensive reliance on the petrochemical and oil industries, foreign labor, the low proportion of women in the workforce, and other factors, they confront several difficulties in their economic structure (mellahi, 2006). other than that, they deal with the main issues and limitations of lmcs are an unfriendly business climate, a lack of financial assistance, insufficient government backing, and environmental concerns (ahmad, 2012). due to their more outstanding economic contribution than smes in saudi arabia, we obtained the data from lmcs there. the manufacturing industry has a positive and significant impact on the success of industrial growth and makes a healthy contribution to saudi arabia's economy. as a result of market globalization, saudi arabia's manufacturing sectors are working to increase their competitiveness to meet the more challenging demands of both domestic and foreign markets (way et al., 2016). as saudi arabia is a high-income country with a significant emphasis on lmcs, we chose to target top trading manufacturing companies based on its stock exchange list (al-dhabaan, 2021). at first, we gave out 500 samples and got back 270 of them for a response rate of 54%. 268 usable samples are then applied for final analysis after data cleaning and filtering. the 268-person sample size is also sufficient for sem analysis (hair et al., 2020). 4.3 data collection practice and respondents' ethics we used the survey form to collect responses from the study's analytical units. we used both in-person visits and online surveys as methods of data gathering. due to a standard and routine practice of behavioral model testing, the researchers visited the lmcs personnel and used a convenience sampling technique (sumaedi et al., 2020). surveys are a standard tool for gathering data for the study. before getting the respondents' responses, we carefully explored their ethical principles while keeping them in mind. we first informed them of the study's purpose and goals and the opportunity for optional feedback. therefore, the researchers ensured that a fictitious online study served as an example of their anonymity, confidentiality, privacy, and harm avoidance. 4.4 measures three fundamental constructs—the ghc, gsc, and grc—form the basis of the gic. a sample item from the five that makeup ghc's evaluation is "the contribution of employees to environmental protection in our firm is better than that of our major competitors." similarly, grc is measured with five items as its tester item is "our firm designs products and/or services in violation of the environmentalism desires of our customers," and gsc evaluated nine items with the sample item "our firm is more innovative concerning environmental protection than are our major competitors." the study conducted by chen (2008) served as the inspiration for all of the gic dimensions' items. we used 10 roscoe et al. (2019) items to analyze the gc factor. "it is simple to understand the company's green operations," reads the sample item on the scale. the sample item "decrease in costs for materials purchasing" from zhu et al. (2008) comprises five components that comprise the ep scale. five items from laosirihongthong et al. (2013) are used to evaluate enp. "improved compliance with environmental standards" is the test item. we adopted five items from paulraj's (2011) study to quantify the sp, using the sample item "improvement in community health and safety." a likert scale with the options "strongly agree=1; agree=2; neutral=3; disagree=4 and strongly disagree=5" is used to score each question on the survey. 5. analysis 5.1 descriptive statistics and correlation coefficient to observe the demographic tendencies among the respondents, we used descriptive statistics, as is frequently done by social, business, and management academics (fisher and marshall, 2009). in this way, we observed a maximum mean score for gsc (3.794) and a lowest mean score for the enp variable (3.337). similar to how the gsc variable had the lowest (1.028) and highest (1.693) standard deviation values, the gc variable had both (table 1). additionally, we utilized the pearson correlation coefficient test to gauge the potency or degree of linear relationships among all model-relevant variables. as a result, we noted the positive correlation between all of the constructs in table 1 by adding one or two asterisks (* or **), confirming a high correlation level. agbioforum, 24(3), 2022 | 102 abdelwahed, al doghan and soomro. — green intellectual capital and sustainability in manufacturing industries in saudi arabia table 1: descriptive statistics and correlation matrix s.no. constructs m sd 1 2 3 4 5 6 7 1 ghc 3.794 1.132 -- 2 gsc 3.673 1.028 0.388** -- 3 grc 3.382 1.567 0.466** 0.340** -- 4 gc 3.590 1.693 0.412** 0.122* 0.472** -- 5 ep 3.700 1.189 0.399** 0.338** 0.428** 0.388** -- 6 enp 3.337 1.201 0.359** 0.289** 0.392** 0.319** 0.382** -- 7 sp 3.480 1.470 0.421** 0.192* 0.320** 0.214* 0.239* 0.421** -- **. correlation is significant at the 0.01 level (2-tailed). *. correlation is significant at the 0.05 level (2-tailed). note(s): m= mean; sd= standard deviation; ghc= green human capital; gsc=green structural capital; grc= green relational capital; gc= green culture; ep= economic performance; enp= environmental performance; sp= social performance 5.2 measurement of model assessment we used sem because it has a high reputation and is worthwhile minimizing model error to obtain worthwhile outcomes and improved solutions for testing the validity with reliable and authentic statistical facts of the study (hair et al., 2020). we determined how the measurement items were organized by observing the correlation between the measurement item and the construct level. we used the measurement model to check the association with parent factors to evaluate the items' relevance. first, given errant researchers like hair et al. (2020), we emphasized the validity. the scores of loadings stayed in the range of 0.789 (gsc6) to 0.898 (enp1) and ensured acceptable values (> 0.70). in factor loadings, we saw that most items had outstanding consistency and correlations with their components (hair et al., 2020). according to hair et al. (2020), these values offer the current statistical significance and high convergence. however, four items— gsc5, gsc7, gc4, sp2, and gc7—did not receive the aboverecommended scores (0.70) and were excluded. additionally, we observed that the constructs had exceptional internal consistency (>0.70), as seen by the composite reliability (cr) ratings, which ranged from 0.791 (sp) to 0.862 (ghc) (hair et al., 2020). in addition, we discovered that the average extracted variance (ave) ranged from 0.765(sp) to 0.870(ghc), which is higher than 0.50 and postulates a satisfactory convergence (hair et al., 2020). finally, it is noted that cronbach's alpha for all constructs is adequate (> 0.70). it was maintained between 0.799 (enp) and 0.865 (sp) (>0.70), approving adequate or high reliability for model confirmation (table 2). 5.3 structural model assessment we utilized analysis of moment structures (amos) ibm version 26.0 to assess the hypothesized paths. as presented in table 3 and figure 2, we examine the direct paths through critical ratio (cr) and found a significant positive effect of ghc on ep, enp, and sp (h1a=cr=4.373***; h1b=cr=4.021***; h1c=6.777***; p< 0.01), which accepts the h1a, h1b, and h1c. likewise, the effect of gsc on ep, enp, and sp appeared positive and significant (h2a=cr=6.023***; h2b=cr=5.889***; h2c=4.722***; p< 0.01). these results approve the h2a, h2b, and h2c. table 2. measurement model factors item code loading score cr ave (α) green human capital [ghc] ghc1 0.877 0.862 0.870 0.860 ghc2 0.856 ghc4 0.849 ghc3 0.832 ghc5 0.809 green structural capital [gsc] gsc1 0.862 0.792 0.866 0.828 gsc2 0.859 gsc3 0.844 gsc4 0.832 gsc9 0.820 gsc8 0.800 gsc6 0.789 green relational capital [grc] grc1 0.878 0.801 0.825 0.848 grc2 0.856 grc3 0.832 grc4 0.829 grc5 0.810 green culture [gc] gc1 0.872 0.844 0.788 0.858 gc3 0.870 gc2 0.840 gc5 0.817 gc10 0.810 gc8 0.801 gc9 0.799 gc6 0.790 environmental performance [enp] enp1 0.898 0.828 0.809 0.799 enp2 0.882 enp3 0.832 enp4 0.819 enp5 0.802 economic performance [ep] ep1 0.852 0.819 0.811 0.847 ep5 0.849 ep4 0.831 ep3 0.820 ep2 0.819 social performance [sp] sp1 0.861 0.791 0.765 0.865 sp3 0.843 sp4 0.820 sp5 0.801 note(s): cr= composite reliability; ave= average variance extracted; α= cronbach's alpha reliability regarding the same practice, the sem analysis found a positive influence of grc on ep, enp, and sp (h3a=cr=6.000***; h3b=cr=4.321***; h3c=6.421***; p< 0.01). as a result, the data accept h3a, h3b, and h3c. similarly, we noticed a positive predictive power of ghc, gsc, and grc on gc (h4a=cr=4.672***; h4b=cr=6.319***; h4c=5.221***; p< 0.01), which supported the proposed hypotheses (h4a, h4b, and h4c). moreover, the analysis showed a positive and significant effect of gc on ep and enp (h5a=cr=6.091***; h5b=cr=4.821***; p< 0.01), agbioforum, 24(3), 2022 | 103 abdelwahed, al doghan and soomro. — green intellectual capital and sustainability in manufacturing industries in saudi arabia but non-significant on sp (h5c=cr=0.829; p> 0.01),). as a result, h5a and h5b are supported, and h5c is not accepted. concerning to mediating effect, we noticed a positive and significant role of gc in shaping the association of ghc and gsc with ep and enp (h6a=cr=3.231***; h6b=cr=3.992***; p< 0.01) (table 3 and figure 3), which accepted the h6a and h6b. on the other hand, gc is not found to be a positive and significant mediator between grc and sp (h6c=cr=0.721; p> 0.01) (table 3 and figure 3). consequently, h6a and h6b are supported, while the data do not accept h6c. for more understanding, we detailed the decision assessment in table 4. table 3: sem estimations s.no. relationships estimate se cr p-value h1a ghc → ep 0.242 0.392 4.373 *** h1b ghc → enp 0.210 0.321 4.021 *** h1c ghc → sp 0.322 0.047 6.777 *** h2a gsc → ep 0.371 0.044 6.023 *** h2b gsc → enp 0.309 0.041 5.889 *** h2c gsc → sp 0.117 0.035 4.722 *** h3a grc → ep 0.362 0.040 6.000 *** h3b grc → enp 0.202 0.333 4.321 *** h3c grc → sp 0.392 0.049 6.421 *** h4a ghc → gc 0.291 0.039 4.672 *** h4b gsc → gc 0.372 0.0414 6.319 *** h4c grc → gc 0.382 0.051 5.221 *** h5a gc → ep 0.310 0.041 6.091 *** h5b gc → enp 0.119 0.039 4.821 *** h5c gc → sp 0.036 0.033 0.829 0.462 h6a ghc → gc → ep 0.109 0.033 3.231 *** h6b gsc → gc → enp 0.113 0.032 3.992 *** h6c grc → gc → sp 0.030 0.029 0.721 0.409 note: cr=critical ratio; p***=significance level at <0.01. note(s): ghc= green human capital; gsc=green structural capital; grc= green relational capital; gc= green culture; ep= economic performance; enp= environmental performance; sp= social performance 6. discussion and conclusion the goal of the current study was to examine sustainability both directly through gic and indirectly through gc. regarding the impact of gic on sustainability, the sem findings indicated that ghc, gsc, grc, and gc significantly influenced ep, enp, and sp among saudi arabian lmc employees. these results are accorded with several scholars like yusoff et al. (2019), malik et al. (2020), al-swidi et al., 2021), benevene et al. (2021), al issa et al. (2022), asiaei et al. (2022); sheikh (2022) and suki et al. (2022) who underlined the significant positive effect of gic on sustainability in terms of ep, enp, sp, and gc. these encouraging results demonstrate that employees in their companies substantially contribute to environmental conservation. they concentrate on attributes that benefit and support the environment and offer goods and services that are healthier and more environmentally friendly than those of their rivals. they collaborate to achieve their objectives while protecting the environment. for environmental protection, they spend a sizeable portion of their sales on r&d, and their staff is also involved in environmental management. figure 2: sem analysis [direct effects] source: conducted by authors note: cr=critical ratio; p***=significance level at <0.01. ghc= green human capital; gsc=green structural capital; grc= green relational capital; gc= green culture; ep= economic performance; enp= environmental performance; sp= social performance agbioforum, 24(3), 2022 | 104 abdelwahed, al doghan and soomro. — green intellectual capital and sustainability in manufacturing industries in saudi arabia figure 3. sem analysis [indirect effects] source: conducted by authors note: cr=critical ratio; p***=significance level at <0.01. ghc= green human capital; gsc=green structural capital; grc= green relational capital; gc= green culture; ep= economic performance; enp= environmental performance; sp= social performance table 4. hypotheses summary s. no. hypotheses description decision h1a ghc positively and significantly predicts ep. accepted h1b ghc positively and significantly predicts enp. accepted h1c ghc positively and significantly predicts sp. accepted h2a gsc positively and significantly predicts ep. accepted h2b gsc positively and significantly predicts enp. accepted h2c gsc positively and significantly predicts sp. accepted h3a grc positively and significantly predicts ep. accepted h3b grc positively and significantly predicts enp. accepted h3c grc positively and significantly predicts sp. accepted h4a ghc positively and significantly predicts gc. accepted h4b gsc positively and significantly predicts gc. accepted h4c grc positively and significantly predicts gc. accepted h5a gc positively and significantly predicts ep. accepted h5b gc positively and significantly predicts enp. accepted h5c gc positively and significantly predicts sp. rejected h6a gc mediates the relationship between ghc and ep. accepted h6b gc mediates the relationship between gsc and enp. accepted h6c gc mediates the relationship between grc and sp. rejected they intend to implement the overall significant developments for environmental protection smoothly. they think their companies' product and service plans align with their customers' environmental demands. regarding environmental protection, they take into account client satisfaction. they expand their affiliation with environmental preservation in their business and have solid upstream suppliers. their businesses are in charge of managing critical environmental protection partners. they are given green information and environmental policy standards along with green issues. through their quest for green knowledge, they know the company's green operations and personally share green practices. they are inspired and encouraged to handle environmental challenges at work seriously. they have a lot of freedom to choose how they respond to environmental issues. employees of mlcs work to reduce the expenses associated with acquiring materials, energy, waste treatment, and disposal, as well as the fines associated with environmental mishaps. in terms of the environment, they enhance adherence to environmental norms. they are prepared to cut back on energy use, hazardous material use, raw material use, and air pollutants. they work to raise the general stakeholder welfare and community health and safety level from a social perspective. they lessen risk and environmental repercussions for the general public and are willing to improve workplace health and safety for employees. finally, they contribute significantly to the safety and improvement of community members' awareness of their fundamental rights. the study's overall results revealed that gic had a significant role in creating sustainable growth within saudi arabia's mlcs. it was determined that the gc component was substantial and that the enterprises' stability and the environment are protected due to their compliance with fundamental environmental regulations. additionally, gc supports improving ep and enp to strengthen the link between gic and sustainability. however, gc needs to contribute more to creating a direct connection with sustainability and a subtly evolving linkage between gic and sustainability. the study has some drawbacks because no theory was used to support the model. the study is only able to use crosssectional data and a quantitative methodology. it is only open to lmc personnel who can easily access them. finally, 268 samples were used to generate the study's conclusions. in terms of its application, the study offers policymakers and environmental protection organizations ways to think about how gic and gc might promote sustainability without causing environmental harm. the uniqueness of the current inquiry reveals how gic aids businesses in achieving a competitive edge and sustainable performance for future researchers. by utilizing this paradigm as a strategy, mlcs in emerging and established countries can increase their manufacturing capabilities for cleaner products. the study could support them in accomplishing agbioforum, 24(3), 2022 | 105 abdelwahed, al doghan and soomro. — green intellectual capital and sustainability in manufacturing industries in saudi arabia their objectives and foster collaboration to emphasize environmental preservation and firm stability with upstream supplements. the study would provide guidance for gathering green evidence from environmental policy to address green environmental concerns. additionally, inspiring and urging workers to approach environmental issues in the lmcs with a great deal of responsibility would be beneficial. this aids in decision-making with significant autonomy about environmental issues. the work could theoretically pave the way for further development of theories by providing additional empirical support for gic, gc, and sustainability in a middle eastern nation. researchers, decision-makers, managers, and practitioners interested in manufacturing enterprises' green and sustainable development may gain an understanding and persuasive theoretical orientation from the empirical conclusions. finally, the study's findings will add to the knowledge of environmental science, climate change, and management, especially for saudi arabia's mlcs. more longitudinal studies involving various organizations should be undertaken in the future. to give research a solid foundation, the upcoming investigation can concentrate on the induction of the relevant theory. future research should also use probabilistic samples and diverse methodologies. finally, aspects like environmental values, climate change, pro-environmental behavior, environmental safety, green hrm, green intents, etc., should be incorporated into future models. declaration of conflicting interests: the authors declare no conflict of interest. 7. acknowledgments the authors thank king faisal university for awarding the deanship of scientific research, vice presidency for graduate studies and scientific research, king faisal university, saudi arabia [project no. grant2657]. references agyabeng-mensah, y., & tang, l. 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lambert department of agricultural economics oklahoma state university 411 agriculture hall stillwater, oklahoma, usa email: dayton.lambert@okstate.edu sugarcane aphids melanaphis sacchari (aphididae: hemiptera) cause significant economic damage to sorghum production. this study measures the effects of weather, geographic, and biological characteristics of sugarcane aphid (sca) on the infestation of sorghum fields in oklahoma. infestation likelihood curves suggest there is a difference in the infestation probability between the high and low-density wing/un-winged sugarcane aphid groups. the larger the ratio of winged to un-winged sugarcane aphid, the more likely their movement to other sorghum fields. proportional hazard regression results affirm that weather is an important factor in determining infestation hazards. this study uses information on field-level infestations of sorghum by sugarcane aphis. data were collected by scouting sorghum fields for sca infestation during the 2017 growing season in oklahoma. field location, the distance between sampled fields, and the day sca were observed was recorded. field location and the distance between sampled fields was not a significant factor affecting the likelihood of field infestation. the total population of sugarcane aphid per plant in the most recently infested field was negatively correlated with infestation hazard. these findings may contribute to development of early warning infestation alarms through the coordination of farm-to-farm pesticide use and harvest timing. increased investments in real-time pest monitoring including on-farm detection, report transmission, and forecasted movements could improve the accuracy of early warning sca system for producers, thereby mitigating the negative economic impacts caused by infestation. keywords: geography, precipitation, sorghum, sugarcane aphids, temperature, time-to-infestation. 1. introduction this study measures the effect of weather variables and geographic features on the infestation of oklahoma sorghum production by sugarcane aphid (sca). weather variables, including temperature, humidity, and precipitation, as well as the growth stage of sorghum, affect the susceptibility of sorghum plants to sca and their proliferation (behura & bohidar, 1983; mote, 1983). documentation of the effects of environmental variables, including temperature, moisture, and humidity, on insect life cycles is often performed in controlled laboratory settings. this is the first study to examine the effect of geographic and weather variables on the migration of sca at the sorghum-field level using a survival model, which is also called a proportional hazard model (phm). phm is a flexible, regressionbased modeling approach capable of incorporating the effects of weather, location, and temporal covariates for determining the likelihood of field-to-field sca migration (cox, 1972). the study uses field-level observations of sca infestations on oklahoma sorghum fields to determine how weather variables and field proximity influence the time until a field is infested. infestation dynamics and population colonization vary, and depend on factors such as native vegetation, food density, host plant species abundance, timing and rate of migration and dispersal, and geographic location (singh, padmaja, & seetharama, 2004). the study was conducted during the 2017 growing season. producers and researchers scouted fields on a daily basis for sca. the date, the proportion of winged versus unwinged sca, and distances to the most recently infested sorghum field were recorded. the covariates used in the sca migration regression include distance between sorghum fields, temperature, precipitation, wind direction, and the date when sca were observed on a given field. findings may be useful for developing predictive models for sca migration and the time until a sorghum field is infested. 2. literature review sugarcane aphid (melanaphis sacchari, hemiptera: aphididae) is a pest found in more than 30 countries that feeds on 20 species of rice and other commodity crops (singh, padmaja, & seetharama, 2004). in the united states, sorghum, sweet sorghum, and some millet varieties are sca’s main hosts since its introduction in the 1970s (singh, padmaja, & seetharama, 2004). sca transmits sugarcane yellow leaf virus, causing yield loss in sorghum (behary paray et al., 2011; gonçalves, 2005; lopes et al., 1997). damage to sorghum caused by sca depends on factors such as aphid/plant density and the duration of infestation (singh, padmaja, & seetharama, 2004). weather variables also affect sca population density, their migration, and survival. studies measuring the relationship between temperature and sca population density find that dispersal of aphids occurs within 6 to 10 days at temperatures between 18 and 30°c, with populations destroyed at 35°c (behura & bohidar, 1983). sca thrive and proliferate on sorghum as humidity increases (mote, 1983). warm temperatures have a positive effect on aphid populations until a critical temperature of 35°c is reached, while rainfall has a negative effect on sca survival (mann et al., 1995). rainfall also removes aphids from host plants and makes sca more vulnerable to predators (cocu et al., 2005; klueken et al., 2009). sca infestation of sorghum may be most severe during the late sorghum growth phase due to plant stress caused by drought. sca colonies increase rapidly after the piping stage (the extrusion of tailpipe-like appendages) (van rensburg, 1973). sca populations on a single plant may reach as much as 30,000 individuals (setokuchi, 1976). mailto:dayton.lambert@okstate.edu agbioforum, 25(1), 2023 | 119 lee, vitale, lambert — weather and geographic effects on sugarcane aphid migration 3. methods and procedures 3.1 time-to-infestation curves time-to-infestation curves depict the probability of a sorghum field becoming infested over some period. there are no previous studies analyzing the relationship between winged and un-winged sca populations and the likelihood of a field becoming infested. winged individuals are relatively more resistant to starvation (noda, 1960), have a longer reproductive period, and live longer (tsuji & kawada, 1987; tsumuki et al., 1990). these factors are hypothesized positively affect the likelihood of migration and field infestation. the expected result is that there will be a difference in the infestation curve according to the winged/un-winged ratios. the type of infestation (or ‘hazard’) curves used here require assigning outcomes to discrete groups (allison, 2010). the winged/un-winged ratio is categorized into a ‘high’ and ‘low’ category based on the median value of 1.4% (the un-winged/winged ratio). for reference, the number of surveyed fields with the number of winged alatae less than 1 was 34 (97.1%), and the number of fields with the number of wingless alatae was 28 (80%). the number of fields with a ratio of 0 was 14 (40%), and the number of fields with a ratio of 0.1 or less was 24 (68.6%). regional differences in growing conditions may also accelerate or deter sca infestation. the southwestern great plains region is a direct route for sca migration from texas northward. the likelihood a field becomes infested more quickly is expected to be relatively higher in the southwestern region compared to the north-central and northwestern regions of oklahoma. thus, time-toinfestation curves are estimated for each region. inter-field distance is also expected to influence the likelihood a field is infested by sca. a time-to-infestation curve is generated for each of the four distance variables. inter-field distance was classified into ‘closer’ and ‘more distant’ fields using the mean values of the distances as an arbitrary cut-off. the fact that sca (especially winged sca) migrate over long distances and can cause rapid diffusion (suarez, holway, & case, 2001) supports the assumption that there is a difference in the hazard of infestation according to field proximity. the mean values of each distance covariate are 207.6 miles (distance between the last infested sorghum field in texas and all oklahoma sorghum fields), 116.86 miles (distance between the first sorghum field infested in oklahoma and to all other fields in oklahoma), 39.67 miles (distance between the first infested field in a region to other fields in the same region), and 43.76 miles (distance between temporally consecutive infested fields) are used to group observations into ‘low’ and ‘high’ wing classes. the null hypothesis is that the distributions of the infestation curves for each group (‘low’ and ‘high’) are not different. 3.2 proportional hazard model in addition to the univariate comparisons of time-toinfestation curves, a proportional hazard model (phm, (cox, 1972)) is used to determine the ceteris paribus effects of covariates on the likelihood of a field being infested by sca (allison, 2010). phm model the likelihood of a hazardous event occurring as a censored outcome (george, seals, & aban, 2014). censoring occurs when an event is unobserved before the study terminates. for the data collection period of this research, the first observation date is the left censoring date, and october 16 the right censoring date. there were 12 right-censored (uninfested) fields observed over the 139 days of data collection. in oklahoma, sorghum planting occurs between april to july with harvest following in september to november (hawkins et al., 2004). infestation can occur on multiple sorghum fields during this period. this means that uninfected fields in the north-central and northwestern regions may be leftor right-censored because sca migrate south to north. infestation is also less likely to occur earlier than the left-censoring date of may 31. therefore, fields where infestation did not occur during the data collection period are right-censored. 34 fields were infested between 31 may and 16 october, and are recorded as interval-censored observations. the phm measures the hazard of a field becoming infested by sca on day 𝑡 is ℎ(𝑡) = 𝑙𝑖𝑚 𝛥𝑡→0 𝑃𝑟(𝑡 ≤ 𝑇 < 𝑡 + 𝛥𝑡|𝑇 ≥ 𝑡) 𝛥𝑡 , where ℎ(𝑡) is the infestation hazard and is a function of time and 𝛥𝑡 is an incremental time step measured in days. the phm assumes the effect of a covariate is multiplicative with respect to the hazard rate. the phm, including the weather and geographic instruments, is: ( 1 ) ℎ𝑖(𝑡) = ℎ0(𝑡) ∙ 𝑒𝑥𝑝 (𝛽1 ∙ 𝑙𝑖 𝑝 + 𝛽2 ∙ 𝑙𝑖 𝑛 + 𝛽3 ∙ ( 𝑑𝑖 1 100 ) + 𝛽4 ∙ ( 𝑑𝑖 2 100 ) + 𝛽5 ∙ ( 𝑑𝑖 3 100 ) + 𝛽6 ∙ ( 𝑑𝑖 4 100 ) + 𝛽7 ∙ 𝑡𝑎𝑖 + 𝛽8 ∙ 𝑟𝑎𝑖 + 𝛽9 ∙ 𝑎𝑛𝑖 + 𝛽10 ∙ 𝑡𝑝𝑖 + 𝛽11 ∙ 𝑤𝑖) where ℎ0(𝑡) is a baseline hazard function; and 𝛃 are parameters to be estimated. the hazard associated with a covariate is a log odds ratio. the ratio is calculated as the exponential of the estimated coefficient. for dummy variables, the log odds are interpreted as the ratio of the hazard for a variable with a value of ‘1’ to the hazard for a variable with a value of ‘0’. that is, the hazard ratio is the difference in the likelihood of becoming infested (motulsky, 2014). for continuous covariates, the hazard ratio is the change in infestation hazard for an increase of one-unit in a covariate (zwiener, blettner, & hommel, 2011). the percentage change in infestation for every oneunit increase in a covariate is the exponentiated coefficient less ‘1’, times 100 (allison, 2010). the variables 𝑙𝑖 𝑝 and 𝑙𝑖 𝑛 are regional dummy variables. the southwestern region of oklahoma is the reference group. the expected sign of the coefficient on the northern and western region dummy variables is negative because sca typically move south to north. the 𝑑𝑖 1 covariate (distance between sorghum fields in oklahoma and the last observed field in texas infested by sca) controls for northward movement of sca from its origin as a function of distance. the variable 𝑑𝑖 2 is the distance between the first infested field in the southwest region of oklahoma and all other oklahoma sorghum fields. the variable 𝑑𝑖 3 is the distance between the sorghum field where sca infestation was first reported in a region agbioforum, 25(1), 2023 | 120 lee, vitale, lambert — weather and geographic effects on sugarcane aphid migration (as indicated by the dummy variables; southwest, northcentral, north-east), and all other sorghum fields in the region. the variable 𝑑𝑖 4 is the distance between an infested field in period 𝑡 and the most recently infested field in 𝑡 − 1. the distance variables were scaled by 100 for interpretability. the expected signs of the coefficients for all distance covariates are negative, meaning that the hazard of infestation is expected to decrease as the distance between fields increases. the variables 𝑡𝑎𝑖, 𝑟𝑎𝑖, and 𝑎𝑛𝑖 are temperature, precipitation, and the wind direction angle, respectively, for field 𝑖. these are the median values of the kriged surfaces for each field, with the median value taken over 𝑡 = 0 up to the infestation date (details follow). for uninfected fields, the median values over the 139-day study period were used. the expected sign of temperature on the time until a field was infested is negative. research finds that sca only reproduce in the temperature range of 10 to 30°c, and that fertility and longevity decrease outside this temperature range (de souza et al., 2019). the median field temperature over the study period was 24°c (minimum (maximum) of 19 (27) °c). this range is ideal for sca reproduction. it is hypothesized that temperatures outside this range will negatively affect sca survival (de souza et al., 2019). precipitation negatively affects the survivability of sca. the expected sign of precipitation on field infestation is negative. the expected sign of the wind direction angle on sca infestation is positive. an increase in the wind direction angle indicates a shift in wind direction from the northeast to northwest. this shift is expected to positively correlate with sca migration northward. sca population characteristics include the temporally lagged aphid population per sorghum plant and the temporally lagged ratio winged-total individuals per sorghum plant. the expected sign for the temporally lagged total population per plant is positive. fields with a larger number of sca populations at 𝑡 – 1 are hypothesized to increase the likelihood of proximate fields becoming infested. the expected sign of the variable for the winged/un-winged ratio variable is positive, suggesting that proximity to a field that is infested with relatively more winged sca in 𝑡 – 1 increases the likelihood of a field becoming infested. winged sca are mobile over longer, field-to-field distances compared to un-winged individuals. the underlying assumption of the phm is that the relative hazard of becoming infested is constant over time. this assumption is not always justifiable, given the biological properties of sca and geographic variability in weather (kuitunen et al., 2021). if the effect of a covariate on a hazard varies over time, then the proportional hazard assumption is violated and statistical inference may be compromised (nakamura, 1992). in this case, one solution may be to add a time-dependent covariate to the model. the day-to-day correlation of weather and population characteristics may be associated with changes in the infestation hazard. only the north-west region covariates reject the non-proportional hazard assumption. since the region where a field is located and the distance between the fields is time-invariant, violation of the proportional hazard assumption for the northwest dummy covariate is unlikely. therefore, time-dependent covariates are not added to the phm model. 3.3 ties and exact proportional hazards models tied events mean that multiple fields were reported to be infected at, or around, the same time (xin, 2011). the likelihood a coefficient estimate is biased downward increases as ties become more frequent (allison, 2010). of the 35 infested fields, the number of tied fields with reports of infestation occurring on the same day was 31 (88.6%) (appendix tables 1 and 2 report the dates, field id, the total sca population per plant, and tied events). two partial likelihood methods proposed by efron (1977), exact and discrete, provide a better approximation of the hazard function when data are tied. the exact partial likelihood method assumes there is an unknown ordering with respect to infestation events, whereas the discrete method assumes that infestation events occurred at exactly the same time (allison, 2010). during the study period (may 31 to october 16; 139 days), 47 sorghum fields were surveyed at an irregular frequency for each field. for infested fields, sca could have migrated there before the date fields were surveyed. for example, an infestation report was made on august 30 for field 23. the fields on which infestation was reported for august 30 are 19, 23, 24, 27, 28, and 34. it is assumed there is an unknown ordering of these infestation events since sca infestation may have occurred on the same date, or at an earlier date, for these six fields. the exact partial likelihood method attends to this issue and it is used here. in this study, the proc phreg procedure (sas 9.4 software) is used for the proportional hazard model. 3.4 data data were obtained from the united states department of agricultural research station in stillwater, oklahoma personal communication (elliott, 2021). data were collected in 2017 from 47 oklahoma sorghum fields (appendix table 1, “field statistics”). observations were made on multiple days at an irregular frequency, ranging from one to 14-day intervals. data collection resulted in 433 observations for the 47 sorghum fields surveyed. the number of observation days is 139 for all fields, spanning from may 31 to october 16, 2017. a field was considered infested if winged or wingless sca were identified on sorghum plants. the period from may 31 to the observed infestation date marks the time (𝑡, days) until a field was infested. if the field was never infested from may 31 to october 16, then it received a ‘0’. the ‘0’ indicator censors un-infested fields. in this study, the date until the first infestation of the field is used, not the date when the field is infested. the date until the first infestation occurs is used as the dependent variable in the survival model (allison, 2010). for example, an infestation reported on august 16 corresponds with a period of 77 un-infested days. 34 of oklahoma’s 47 sorghum fields were infested during the data collection period, with the remaining 12 fields classified as uninfested on october 16 (table 2). agbioforum, 25(1), 2023 | 121 lee, vitale, lambert — weather and geographic effects on sugarcane aphid migration the covariates included in the sca migration model fall into three categories: geographic relationships between sampled sorghum fields, weather variables, and sca population characteristics (table 1). table 1. covariate description category covariate description acronym source geographic relationship field location north-central (ncok), north-west (phok), southwest (swok) 𝑙𝑝, 𝑙𝑛 norman elliott (personal conversation, 2021) distance distance (miles) between the first infested field and other fields in the region by region 𝑑1 norman elliott (personal conversation, 2021) distance (miles) between the last infested sorghum field in texas and the sorghum field in oklahoma 𝑑2 norman elliott (personal conversation, 2021) distance (miles) between the first sorghum field in oklahoma and other fields in oklahoma 𝑑3 norman elliott (personal conversation, 2021) distance (miles) between sorghum fields infested in sequential time order 𝑑4 norman elliott (personal conversation, 2021) weather temperature temperature (°c) in sorghum field (average of all 5-minute averaged temperature observations each day) 𝑡𝑎 oklahoma mesonet (2020) precipitation precipitation (mm) in sorghum field (liquid precipitation measured each day) 𝑟𝑎 oklahoma mesonet (2020) wind direction wind direction angle (east: 0 degrees) in sorghum field (most common wind direction converted to degrees) 𝑎𝑛 oklahoma mesonet (2020) sugarcane aphid population characteristics total population of sca number of sugarcane aphids per plant 𝑡𝑝 norman elliott (personal conversation, 2021) winged sca ratio proportion of winged sugarcane aphid to total population of sugarcane aphid per plant 𝑤 norman elliott (personal conversation, 2021) 3.5 geographic relationships between sorghum fields geographic proximity between sorghum fields is modeled using regional dummy variables and distances between sorghum fields. sca infestations typically begin in the southern region of oklahoma. sca then migrate northward. infestation occurred first in the southwest region (first sighting, may 31), followed by the northcentral region, and finally the northwest region. reporting dates for the north-central region occurred june 1 to october 3. reporting dates for the northwest region were from july 7 to october 16 (figure 1). the division of oklahoma’s sorghum-producing areas into three regions controls for regional differences in landscape, soil quality, and other agroecological features. the 47 sorghum fields were situated in three distinct growing regions of oklahoma: 11 sorghum fields were in the southwest region, 18 sorghum fields were in the northcentral region, and 18 sorghum fields were in the northwest region of oklahoma (figure 1). field-to-field distances were calculated using the haversine formula. distance variables are in miles. four distances were constructed. the first distance variable is the distance between the first field infested in a region to other fields in the same region. the second distance variable is the distance between the last infested sorghum field in texas to all surveyed fields in oklahoma. this variable controls for the northward movement of sca from texas to oklahoma sorghum fields as a function of geographic distance. figure 1. oklahoma sorghum field location used for analysis, infestation status, and infestation date (or last reported date) note. data from oklahoma mesonet (mesonet, 2020). the number in each field indicates the field’s identifier, if the field was infested (‘1’ if sca present in the field, ‘0’ otherwise), and the date of infestation. the red line indicates the chronological connection of the fields infested by sca. agbioforum, 25(1), 2023 | 122 lee, vitale, lambert — weather and geographic effects on sugarcane aphid migration the third distance variable is the distance between the first sorghum field infested by sca in oklahoma to all other oklahoma sorghum fields included in the survey. this variable also controls for the northward movement of sca as a function of geographic distance. the fourth distance variable is the distance between infested fields in terms of temporal priority. sequential field-to-field infestations distances were calculated for each surveyed field. 3.6 weather variables weather variables include temperature, precipitation, and wind direction. studies on the biological effects of temperature and precipitation on sca conclude that these two factors directly affect aphid mobility, reproduction, and survival (boate & otayor, 2020; souza & davis, 2020). aphid movement is driven largely by atmospheric conditions (irwin, kampmeier, & weisser, 2007). winged sca alatae are more likely to travel longer distances when atmospheric conditions are stable. aphids cannot migrate over long distances during adverse, or unstable, weather conditions when temperature and precipitation are in flux (isard & gage, 2001; isard et al., 1994). weather variables include average air temperature (tavg), precipitation (rain), and the dominant wind direction (pdir). all weather variables are from oklahoma’s mesonet (mesonet, 2020). there are 119 mesonet stations in oklahoma. each station records daily observations on precipitation, wind speed, and temperature. tavg is the average of all temperature observations at 5-minute interval each day (degrees celsius). rain is precipitation measured each day (mm). pdir is the most common wind direction recorded for a day, and is based on 16-point compass heading with a 16-point cardinal direction (mesonet, 2020). weather variables were imputed for each sorghum field by generating kriged surfaces from data collected at each mesonet station. kriging is a geostatistical interpolation technique that generates predictions for unobserved locations using distance information between known data locations (cressie, 2015; paramasivam & venkatramanan, 2019). kriging was necessary because the weather variables were not measured at the study fields. weather data were kriged for each of 139 days using a spherical semivariogram function: 𝛾(ℎ) = 𝐶0 + 𝐶 ∙ (1.5 ℎ 𝑎 − 0.5 ( ℎ 𝑎 ) 3 ) 𝑖𝑓 ℎ < 𝑎, otherwise 𝛾 = 𝐶0 + 𝐶, where 𝛾 is the semivariogram value, 𝑎 is the effective range (distance), the distance at which the function reaches its maximum value, 𝐶 is the variogram sill, 𝐶0 is the variogram nugget (variance remaining after accounting for spatial covariance), ℎ is the lag of separating distances between fields (brooker, 1986; burgess & webster, 1980). anisotropy was not detected for any weather variables. for each weather covariate, parameters were derived and used for each 139 days. for temperature, the mean of the range, sill, and nugget for 139 days was 2676.7, 9.1, and 0.1. the mean of the range, sill, and nugget for precipitation was 510.86, 0.2, and 0.04. the averages for the range, sill, and nugget over 139 days for wind direction are 1011.1, 4.7, and 2.3, respectively. the (x,y)-coordinates of the kriged surfaces were matched with the (x,y)-coordinates of each of the 47 study fields for the period of 31 may to 16 october. the median values of a field’s kriged weather variables over 139 days were used as field-level observations to minimize the effect of outliers and to arrive at a single, representative record for a field as required by the phm data structure. for example, 210 of the 556 kriged precipitation values (139 days) were ‘0’ for field id 23, resulting in a highly skewed distribution (skewness: 2.97). if there was an infestation reported on a study field, then the median of the field’s weather variables for the period from the first day of observations to the infestation date was used as data. if the field was not infested 31 may to 16 october, the then median of the weather variable from the first observation date to the last observation date of the field was used. the resulting procedure generated a single vector of median kriged values for each weather variable and each of the 47 fields. wind direction is a qualitative variable that ranges from 1 to 16. the 16-point directions were converted to an angle, with east set to 0 degrees. figure 2 shows the kriged medians for each weather variable. the average of the kriged median value for temperature is 24.96 °c. the average precipitation of oklahoma for the kriged median value is 0.02 mm. the average of the kriged wind direction medians is 120.47 degrees (6.65 for 16-point cardinal direction; orients toward the northwest), a change from yellow to red in figure 2 indicates an increase in a variable’s value. in terms of temperature, the southern part of oklahoma is relatively warm compared to other regions. for precipitation, eastern oklahoma is comparatively wetter. for the 16-point cardinal heading system of wind direction, ‘0’ is north (= 90 degrees), ‘4’ is east (= 0 degrees), ‘8’ is south (= 270 degrees), and ‘12’ is west (= 180 degrees). as the angle increases, the wind direction orients towards the west. the minimum and maximum wind direction values of 109.5 and 131.4 degrees indicate that the wind direction tended to orient toward the northwest during the study period. figure 2. median kriged values for temperature, precipitation, and wind direction note. data from oklahoma mesonet (mesonet, 2020). agbioforum, 25(1), 2023 | 123 lee, vitale, lambert — weather and geographic effects on sugarcane aphid migration 3.7 sugarcane aphid characteristics characteristics of sca populations include the number of individuals per plant and the ratio of the number of winged sca (alatae) to un-winged sca (apterae) observed on a plant. the number of sca individuals and the winged/unwinged ratio were matched to the next-infested field. that is, the winged/un-winged ratio is a temporally and spatially lagged variable. this is an important variable since winged individuals can use thermal updrafts to travel to distant fields. table 2. covariate descriptive statistics mean standard deviation min max range infestation 0.72 0.45 0 1 1 period (days) 49.38 28.01 0 92 92 distance to last field infested in texas (miles) 207.61 72.14 105.46 317.89 212.43 distance to first field infested in oklahoma (miles) 116.87 66.27 0 260.77 260.77 distance between the first infested field in a region and other fields in that region (miles) 39.67 30.41 0 106.47 106.47 distance between temporally consecutive infested fields (miles) 43.76 66.25 0 290.44 290.44 population per plant 11.66 75.60 0 518.78 518.78 winged sca ratio 0.05 0.09 0 0.33 0.33 tavg (°c) 24.96 1.06 22.90 27.00 4.10 rain (mm) 0.02 0.01 0 0.04 0.04 pdir (degrees) 120.47 6.02 109.50 131.40 21.90 note. data from dr. norman elliott, usda-ars (personal communication, 2021), oklahoma mesonet (mesonet, 2020). a infestation is indicated as ‘1’ if the field is infested (the number of sugarcane aphid populations per plant is ‘0’ or more) during the infestation investigation period, otherwise ‘0’. tavg, rain, wind direction are the median of temperature, rainfall, and angle of wind direction variables from the first infestation date in oklahoma to the first infestation date. 4. results 4.1 infestation likelihood curves infestation likelihood curves demonstrate the univariate relationships between a covariate and the likelihood sca infest a field (figure 3). there is no statistical difference in the hazard of infestation between the “high” and “low” variable groupings, except for the lagged ratio of the winged/un-winged ratio. figure 1. sugarcane aphid infestation curves between groups of regions dummy variable (a), lagged wing ratio (b), distance between the last infested sorghum field in texas and the sorghum field in oklahoma (c), distance between the first sorghum field infested in oklahoma to other sorghum fields in oklahoma (d), distance between the first infested field and other fields in the region (e), distance between temporally consecutive infested fields (f) covariates. agbioforum, 25(1), 2023 | 124 lee, vitale, lambert — weather and geographic effects on sugarcane aphid migration fields in southwestern oklahoma appear to have a greater chance of infestation after eight days compared to the other regions (figure 3-a). however, the log-rank and wilcoxon statistics are 1.58 and 1.33, respectively, which means that the null hypothesis that the infestation probability between the three regions is the same cannot be rejected (wilcoxon, 1992). in addition, there was no statistical difference in infestation curves between the southwestern and northwestern, and the southwestern and north-central regions. these results differ from the expectation that fields in the southwestern region of oklahoma are relatively more susceptible to infestation. this finding is consistent with previous research that reports sca can migrate over great distances during variable weather conditions (suarez, holway, & case, 2001). for the lagged winged/un-winged ratio covariate, the logrank and wilcoxon statistics are 4.3 and 3.96, respectively. the null hypothesis that there is no difference in the infestation probability for the ‘high’ and ‘low’ groups is rejected. as shown in figure 3-b, the infestation probability of the ‘high’ group is higher than that of the ‘low’ group. populations with lower wing/un-winged ratios are less mobile. this result is consistent with the expectation that infested fields with relatively higher proportions of winged to un-winged individuals increase the probability of other fields in proximity of becoming infested. for the distance between the last infested sorghum field in texas and the sorghum field in oklahoma covariate (𝑑1), there is no difference in the probability of infestation between the ‘high’ and ‘low’ groups (figure 3-c). there is no difference in the infestation probability between the ‘high’ and ‘low’ groups for the distance between the first sorghum field infested in oklahoma to other sorghum fields in oklahoma (𝑑2), the distance between the first infested field and other fields in the region (𝑑3), and the distance between temporally consecutive infested fields covariate (𝑑4) (figure 3-d, 3-e, 3-f). the infestation probability curves calculated with each of the four distance covariates suggest that the difference in distance between fields in oklahoma does not influence the time until a field is infested. this finding suggests that it may be difficult for sorghum producers to establish insect control plans based on field proximity. knowing when sca appeared in north texas may be the most important source of information since sca generally migrate northward. however, information on the wing/unwinged populations in the previously infested field may be useful information for establishing insect control plans and predicting where sca will migrate. 4.2 proportional hazard regression the likelihood ratio and the wald chi-square statistics are large enough to reject the null hypothesis that the variables included in the regression have a joint zero effect on the infestation hazard at the 1% significance level (table 3). all covariates in the geographic relationship category were uncorrelated with the sca infestation hazard. the regional dummy covariates and the distance between the sorghum fields were unassociated with the infestation hazard. studies on the long-distance migration and dispersion activity of sca may explain why field proximity and distance to other fields were uncorrelated with the likelihood of infestation. table 3. cox proportional hazards model results category covariate estimate standard error hazard ratio infestation probability geographic relationship north-west region -1.126 2.256 0.324 0.245 north-central region 0.536 4.149 1.710 0.631 distance between the last infested sorghum field in texas and the sorghum field in oklahoma -0.942 3.552 0.390 0.281 distance between the first sorghum field in oklahoma and other fields in oklahoma 0.510 2.263 1.665 0.625 distance between the first infested field and other fields in the region -1.936 1.939 0.144 0.126 distance between temporally consecutive infested fields 0.398 0.309 1.489 0.598 weather temperature -0.696* 0.419 0.499 0.333 precipitation -10.570** 4.503 0.000 0.000 wind direction -0.129* 0.070 0.879 0.468 sugarcane aphid population characteristics total sca population -0.039* 0.013 0.962 0.490 winged sca ratio -4.186 5.077 0.015 0.015 likelihood ratio 75.62*** wald χ2 117.83*** likelihood 66.57 aic 88.58 sbc 105.69 note. *** significant difference at the .01 level; ** significant difference at the .05 level; * significant difference at the .10 level temperature, precipitation, and wind direction affect the hazard of infestation at the 10% level of significance, respectively (table 3). an increase in temperature is associated with a decrease in the likelihood of sca infestation. for a 1°c increase in temperature, the infestation hazard decreases by 50.1% (=100 × [exp (0.696) – 1]). this result is consistent with the expected sign of this variable. the temperature range over the study period was 18 to 27 °c, and the median temperature was 24 °c, all of which are favorable temperatures for sca reproduction. studies on sca fertility and longevity indicate that populations decrease outside the temperature range of 10 to 30 °c (de souza et al., 2019). the probability of infestation for the temperature covariate was 0.33 (= odds ratio of 𝑡𝑎/ (1 + odds ratio of 𝑡𝑎). an increase in precipitation reduces the probability of sca infestation. agbioforum, 25(1), 2023 | 125 lee, vitale, lambert — weather and geographic effects on sugarcane aphid migration a 1-mm increase in precipitation reduces the hazard of infestation by 99.99%. this finding suggests precipitation reduces the hazard of infestation due caused by rain. the more frequently wind direction changed from northeast to northwest (0 degrees, then to the east at 90 degrees), the lower was the infestation hazard. a 1-degree change in wind direction decreased the infestation hazard by 12.1%. the infestation probability for the wind direction covariate was 0.468. total sca populations were uncorrelated with the hazard of infestation, but the proportion of winged sca in the most recent field was negatively associated with the likelihood of infestation. these findings differ from the a priori expectations, but are consistent with the notion that sca transmission occurs over longer distances, given favorable weather conditions. 5. conclusions the purpose of this study was to measure the effects of weather, geographic, and biological characteristics of sca on the infestation of sorghum fields in oklahoma. this is the first study to evaluate the effects of field proximity, weather, and sca biology on infestation at the field level for southern great plains sorghum producers. temperature, precipitation, and wind direction were hypothesized to be closely related to the survival and migration of sca. geographical characteristics used in this study include between-field distance and locational information. geographical characteristics were uncorrelated with sca survival and migration. total sca population per plant was correlated with the migration of sca and field infestation. infestation likelihood curves suggest there is a difference in the infestation probability between the highand lowdensity wing/un-winged sca groups. the larger the ratio of winged to un-winged sca, the more likely their movement to other sorghum fields. temperature, precipitation, and wind direction were negatively correlated with sca infestation hazards. a decrease in the likelihood of infestation due to an increase in precipitation was associated with a decrease in the likelihood of a field becoming infested. infestation hazards are lower when prevailing winds change from northeast to northwest. as mentioned in previous studies on pest infestation prediction modeling, weather is an important determinant of infestation hazard. however, field location and the distance between fields was not a significant factor in the present study. studies on pests and disease management strategies suggest the need for prediction models based on weather and climate (bhagwan et al., 2022; marini, rizzoli, & tagliapietra, 2022). the results of this study reaffirm the value of including weather data on temperature, precipitation, and wind direction to predict the movement of sca. brown et al. (2022) notes that the use of geospatial data in early warning systems for pest and disease risk can be used to estimate potential risks. findings from this study suggest that geospatial data (field regions and distances between fields) may not be as important as previously suspected for the infestation of sorghum fields. despite the limited number of field observations available for the analysis, a contribution of this study is the fieldlevel analysis of sca infestation of sorghum fields. as mentioned by previous studies, depending on data availability, it may be possible to measure the influence of other factors that affect sca infestation, such as infestation dynamics and food density. in addition, the infestation curve and phm results provide field-level information about more detailed infestation hazard. these aids may improve field-level decision making for pest control planning, such as coordination of pesticide use and harvest timing. recommended policy actions include developing a pest early detection system to track sca infestations in real time. current efforts have been limited primarily to county-level reporting through local extension offices. statewide efforts have been initiated to provide composite mappings of pest reporting, but efforts to regionalize reporting have been less successful. a critical constraint has been limited participation in early warning detection efforts among producers due to the voluntary nature of participation. many producers may by unfamiliar with pest reporting programs. state extension agencies should increase the visibility and awareness of their pest scouting programs and consider requiring producers to provide a pest scouting and reporting action plan to participate their extension programing network. active participation by producers is required to generate the data needed to operationalize an early warning system, because it remains unlikely that satellite imagery or related remote sensing technologies will be able to substitute for manually based scouting approaches. the data currently available on sca infestation is limited and makes it difficult to validate tracking models as illustrated in this paper. the hazard equations explaining sca movement could be expanded with future research to include the life-cycle growth and development of sca colonies across their range of metamorphosis, including the transition from nymphs, instars, and adults and processes such as molting. this information would be particularly required for modeling sca movement across an entire season. the current model includes the proportion of alleles as an exogenous variable, but the polymorphic lifecycle of sca is determined through interactions with the host plant and by weather. the hazard model is based on migration, so additional variables could be included to model the lifecycle, and alternative forms of sexual and asexual reproduction from nymph to adults, to explain the proportion of winged (alleles) to non-winged (apterous) variants when that data become available. the latter could be of particular importance because waterstressed plants are typically more susceptible to phytophagous insects due to increased nitrogen availability. future modeling could include a broader geographic scope and a longer time span encompassing earlier migratory movements. sca are believed to begin migrating northward in early spring from southern texas, near latitudes where temperatures never fall below freezing. an expanded set of observations could include a wider range of weather patterns and provide regional rather than state-level forecasts of sca movement. weather variability and extreme events could also agbioforum, 25(1), 2023 | 126 lee, vitale, lambert — weather and geographic effects on sugarcane aphid migration be included to model non-linearity associated with for example extreme, fluctuating temperatures. finally, machinelearning methods for analyzing sca migration could be explored as “big data” collected from a pest early warning system become more widely available. acknowledgments the authors appreciate the constructive comments provided by anonymous reviewers. this research was partially funded by the sparks chair in agricultural sciences & natural resources and a project supported by the united states department of agriculture, "areawide pest management of the invasive sugarcane aphid in grain sorghum". references allison, p. d. 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https://hdl.handle.net/10520/aja03701263_281 https://doi.org/10.1007/978-1-4612-4380-9_16 https://doi.org/10.1007/978-1-4612-4380-9_16 http://hdl.handle.net/10214/2974 https://doi.org/10.3238/arztebl.2011.0163 agbioforum, 25(1), 2023 | 128 lee, vitale, lambert — weather and geographic effects on sugarcane aphid migration appendices appendix table 1. field statistics id region infestation last report (m/d) period (day) wing distance to field in region (mile) distance to last field infested in texas (mile) distance to first south field infested in oklahoma (mile) distance between temporally consecutive infested fields (mile) population per plant tavg (°c) rain (mm) wind direction angle (degree) 1 ph 0 7/12 42 0 106 105 261 0 0 24.1 0.026 109.5 2 ph 1 8/16 77 1 106 106 260 11 0.25 23.5 0.028 122.2 3 ph 1 8/16 77 0 95 108 251 5 0.02 23.6 0.034 122.9 4 ph 1 8/16 77 1 91 108 246 27 0.03 23.7 0.035 122.9 5 ph 0 7/12 42 0 91 108 246 27 0 24.2 0.030 113.7 6 ph 1 8/16 77 1 65 113 222 21 0.25 24.2 0.034 122.4 7 ph 1 8/16 77 1 44 116 201 28 3.28 24.3 0.031 124.4 8 ph 1 8/29 90 1 21 125 178 12 0.84 24.2 0.035 126.8 9 ph 1 8/16 77 0 16 128 174 16 0.06 25.2 0.037 127.9 10 ph 1 8/29 90 1 10 133 168 176 1.61 24.5 0.034 126.1 11 ph 0 7/12 42 0 0 134 158 0 0 25.4 0.030 123.5 12 ph 1 8/16 77 0 0 135 158 18 0.02 25.5 0.034 126.9 13 ph 0 7/7/ 37 0 3 136 155 0 0 24.1 0.028 123.6 14 ph 1 8/16 77 1 18 151 147 16 0.19 25.8 0.026 127.8 15 ph 0 7/7/ 37 0 31 162 135 0 0 24.3 0.028 121.6 16 ph 1 8/16 77 1 33 164 133 18 0.29 25.9 0.031 128.4 17 ph 1 8/16 77 0 51 178 118 70 0.05 25.9 0.031 123.5 18 ph 0 7/12 42 0 55 181 114 0 0 25.5 0.031 118.8 19 sw 1 7/13 43 1 32 178 92 5 2.08 27.0 0.014 123.5 20 sw 1 6/27 27 0 33 179 92 135 0.01 26.0 0.006 131.4 21 sw 1 6/14 14 1 35 181 94 167 0.03 24.1 0.009 125.1 22 sw 1 7/13 43 1 28 179 87 203 6.99 26.8 0.018 124.5 23 sw 1 8/30 91 1 38 188 96 96 0.03 26.7 0.028 128.7 24 sw 1 5/31 0 1 0 197 59 16 0.08 23.3 0.000 109.5 25 sw 1 6/19 19 0 15 200 70 21 0.04 24.5 0.006 121.9 26 sw 1 6/19 19 1 13 210 50 43 0.03 24.1 0.008 118.0 27 sw 1 5/31 0 1 16 211 45 50 0.06 22.9 0.001 109.5 28 sw 1 8/30 91 1 59 241 0 11 9.1 25.9 0.029 127.0 29 nc 1 7/10 40 0 2 251 53 52 0.06 25.5 0.033 120.6 30 nc 0 6/21 21 0 0 252 52 0 0 24.6 0.032 112.5 31 nc 1 8/31 92 0 0 252 52 0 0.59 26.0 0.030 121.6 32 nc 0 6/21 21 0 1 253 53 0 0 24.6 0.032 112.5 33 nc 0 6/21 21 0 2 254 52 0 0 24.6 0.032 112.5 34 sw 1 8/30 91 1 68 252 11 53 518.78 25.8 0.031 129.6 35 nc 1 6/15 15 0 31 278 78 24 0.08 24.2 0.013 111.2 36 nc 1 8/3/ 64 1 32 281 79 12 0.02 26.9 0.014 118.4 37 nc 1 8/3/ 64 1 42 287 90 30 0.18 26.8 0.016 115.6 38 nc 0 7/10 40 0 45 288 93 0 0 25.0 0.018 116.7 39 nc 1 7/10 40 0 52 295 100 186 0.06 24.9 0.017 116.4 40 nc 1 6/16 16 0 36 288 68 17 0.02 24.1 0.008 109.5 41 nc 1 8/3/ 64 0 73 312 120 290 2.69 26.1 0.023 122.3 42 nc 1 7/25 55 0 74 315 121 11 0.01 26.1 0.019 120.2 43 nc 0 6/23 23 0 52 303 77 0 0 24.6 0.006 121.3 44 nc 1 6/16 16 1 53 304 77 2 0.01 24.0 0.005 114.6 45 nc 1 6/16 16 0 53 304 78 149 0.02 24.0 0.005 113.9 46 nc 0 6/28 28 0 69 316 112 0 0 24.3 0.013 119.5 47 nc 0 7/25 55 1 73 318 116 40 0.05 26.0 0.016 121.1 note. data from data from dr. norman elliott, usda-ars (personal communication, 2021), oklahoma mesonet (mesonet, 2020). agbioforum, 25(1), 2023 | 129 lee, vitale, lambert — weather and geographic effects on sugarcane aphid migration a region means the northwest (ph), southwest (sw), and north-central (nc) regions, respectively. infestation means that the sugarcane aphid population per plant is positive and the field is infested during the infestation investigation period. the last report means the date of the first infestation if there is an infestation, and the date of the last investigation if there is no infestation. period means the difference between the first infestation (may 31) and the date of infestation or the last investigation in each field. wing means that the field is infested with alatae with wings. distance to field in region is the distance between the first infested field for each local region and other fields in the region. distance to last field infested in texas is the distance between the last infested sorghum field in texas and the sorghum field in oklahoma. distance to first south field infested in oklahoma is distance between the sorghum field where the first infestation occurred in oklahoma and other fields in oklahoma. the population per plant is the number of wing/wingless sugarcane aphid per sorghum plant. tavg, rain, angle are the median of temperature, rainfall, and angle of wind direction variables from the first infestation date in oklahoma to the first infestation date. appendix table 2. field ties by date of infestation report date (m/d) number of tie fields id total population per plant region latitude longitude 05/31 2 24 0.08 swok 34.900 -98.864 27 0.06 swok 34.985 -98.603 06/16 3 40 0.02 ncok 36.262 -97.369 44 0.01 ncok 36.232 -97.073 45 0.02 ncok 36.257 -97.073 06/19 2 25 0.04 swok 34.677 -98.862 26 0.03 swok 34.912 -98.639 07/10 2 29 0.06 ncok 36.233 -98.036 39 0.06 ncok 36.810 -97.433 07/13 2 19 2.08 swok 34.585 -99.283 22 6.99 swok 34.644 -99.246 07/25 2 42 0.01 ncok 37.059 -97.181 47 0.05 ncok 36.934 -97.058 08/03 3 36 0.02 ncok 36.532 -97.586 37 0.18 ncok 36.702 -97.554 41 2.69 ncok 37.056 -97.231 08/16 10 2 0.25 phok 36.733 -102.466 3 0.02 phok 36.769 -102.264 4 0.03 phok 36.758 -102.182 6 0.25 phok 36.765 -101.703 7 3.28 phok 36.679 -101.339 9 0.06 phok 36.615 -100.841 12 0.02 phok 36.529 -100.568 14 0.19 phok 36.630 -100.277 16 0.29 phok 36.621 -99.982 17 0.05 phok 36.601 -99.660 08/29 2 8 0.84 phok 36.617 -100.925 10 1.61 phok 36.620 -100.714 08/30 3 23 0.03 swok 34.407 -99.168 28 9.1 swok 35.467 -98.076 34 518.78 swok 35.465 -97.874 note. data from dr. norman elliott, usda-ars (personal communication, 2021). a region means the northwest (ph), southwest (sw), and north-central (nc) regions, respectively. agbioforum, 25(1): 34-48. ©2023 agbioforum natural disaster, information technology, and agriculture production in vietnam: evidence from panel data analysis khai cong dinh school of government, college of economics, law, and government, university of economics ho chi minh city, 72407 ho chi minh city, vietnam research group public governance and developmental issues, university of economics ho chi minh city, 72407 ho chi minh city, vietnam email: khai@ueh.edu.vn thanh quang ngo* school of government, college of economics, law, and government, university of economics ho chi minh city, 72407 ho chi minh city, vietnam research group public governance and developmental issues, university of economics ho chi minh city, 72407 ho chi minh city, vietnam email: thanhnq@ueh.edu.vn corresponding author: thanh quang ngo* agriculture is among the most susceptible industries to natural calamities. technology is crucial to agricultural output. while agricultural machinery directly impacts agricultural output by increasing yield and quality, information technology may influence coping mechanisms for responding to natural disasters and so increase agricultural productivity. this paper examines (1) the degree to which agriculture production in vietnam is impacted by natural disasters such as floods, drought, typhoons, and landslides, (2) how coping strategies mitigate the negative effects of natural disasters, and (3) how information technology influences the selection of coping strategies in response to a natural disaster. our primary premise is that natural catastrophes have a detrimental influence on agricultural production and that coping mechanisms might somewhat mitigate these negative effects. in addition, information technology can facilitate the selection of coping measures for natural disasters. key words: agriculture production, information technology, natural disasters, panel data analysis, vietnam. 1. introduction agriculture is one of the most vulnerable industries to natural disasters due to its intrinsic sensitivity to climate conditions. according to sivakumar (2005), a natural disaster devastates neighboring living beings. there are two types of natural disasters: hydro-meteorological and geophysical (sivakumar, 2005), with the former including landslides, droughts, extreme temperatures, heatwaves, floods, tropical cyclones, windstorms, and others (insect infestation and waves/surges) and the latter including earthquakes and volcanic eruptions (ifrc/rcs, 2003). natural catastrophes have much more devastating effects on agriculture-dependent nations, particularly developing nations. due to the effects of natural disasters like floods, drought, typhoons, and landslides, agricultural output is declining significantly. according to (the food and agriculture organization (fao, 2017), for climate-related disasters such as floods, droughts, and tropical storms, 25% of all damage and losses occur in the agriculture sector. agriculture is the sector most affected by droughts, accounting for approximately 84% of the average of all economic impacts. in addition, asia is the region most affected by production losses, with crop and livestock production losses of usd 28 billion, or 40% of overall losses, followed by africa with usd 26 billion. the prospect of food and drink scarcity would pose a global hazard, jeopardizing the livelihoods of 2.5 billion people worldwide who rely on agriculture for a living. technology is crucial to agricultural output. the adoption of information technology (such as telephones, televisions, computers, and the internet) has increased rapidly over the period studied by kaila (2015). in contrast, agricultural machinery (in various types related to agricultural activities) has changed only marginally. while agricultural machinery directly impacts agricultural output by increasing yield and quality, information technology may influence coping mechanisms for responding to natural disasters and so increase agricultural productivity. in this context, the use of information technology will bring a flood, drought, seawater intrusion, storm, landslide, and flash flood digital models; natural disaster warning/monitoring systems from satellites or on-site gauges processed via iot, big data in early detection of natural disasters to prevent and minimize damage caused by natural disasters (zevenbergen et al., 2014). in addition, with the aid of information technology, the farmer can have a plan for wisely utilizing their land. in addition, they can predict future weather conditions to select appropriate coping methods and reconstruct adaptable plants and animals to mitigate the negative consequences of natural disasters (lundin, 2011; mukherji, 2014; ponce, 2013). notably, the vietnam general directorate of natural disaster prevention and control has recently implemented various communication forms and social networks (such as facebook and youtube) to communicate with users. this makes people aware of weather developments and can initiate prompt responses. vietnam, an agriculture-based nation in southeast asia with a maritime border and a landscape characterized by a long coastline, experiences numerous storms annually. in all regions of the nation in 2020, natural disasters emerged as convoluted, fierce, and unexpected. according to the annual statistics of the vietnamese government, there have been over 458 natural disasters since the beginning of the year (13 storms in the east sea, 263 vortexes, cyclones, 101 flash floods, landslides, 82 earthquakes, droughts, severe seawater intrusion, riverbank, and coastal erosion). vietnam is one of the most susceptible nations in the region due to its vulnerability to natural catastrophes. indepth research on this topic can aid policymakers in mailto:khai@ueh.edu.vn mailto:thanhnq@ueh.edu.vn agbioforum, 25(1), 2023 | 35 dinh and ngo. — natural disaster, information technology developing more suitable remedies for the vietnam scenario. this paper examines (1) the degree to which agriculture production in vietnam is impacted by natural disasters such as floods, drought, typhoons, and landslides, (2) how coping strategies mitigate the negative effects of natural disasters, and (3) how information technology influences the selection of coping strategies in response to a natural disaster. our primary premise is that natural catastrophes have a detrimental influence on agricultural production and that coping mechanisms might somewhat mitigate these negative effects. in addition, information technology can facilitate the selection of coping measures for natural disasters. while many empirical studies have been conducted on the effects of natural disasters at the national, regional, community, household, and individual levels, as well as the sector and crop levels, such as blaikie et al. (2014), loayza et al. (2012), kaplan (2010), ludwig et al. (2007), de haen et al. (2007), sawada (2007), alderman, ho this is primarily due to a lack of pertinent information. the study focuses on the effects of natural catastrophes on agricultural productivity, coping mechanisms, and the use of information technology in vietnam for several reasons (world bank, 2009). second, agricultural output has been vital to vietnam's rural and economic development. due to the limited potential for extending arable land to improve output (due to fast industrialization and urbanization), the risk of food insecurity and agricultural growth in vietnam could be exacerbated by natural disasters and deteriorating agricultural productivity. the third source of our data is the vietnamese access to resources household survey (varhs), conducted in five two-year surveys between 2008 and 2016. it contains in-depth information on agricultural production at the farm level, the many forms of natural catastrophes, their occurrence times, their severity levels, and information technology. they enable an analysis of natural disasters, information technology, and agricultural productivity at the farm level. the study's findings can provide policymakers with valuable information about the negative effects of natural catastrophes on farm productivity, coping mechanisms, and the role of information technology in vietnam. the government should have strong and effective policies and initiatives to mitigate the negative effects of natural catastrophes if they lead to a decline in agricultural productivity. in addition, a national framework for combating natural disasters should promote and tailor more effective coping mechanisms with information technology to deal with the negative repercussions of a natural disaster. the study is anticipated to contribute to the literature on environmental and development economics. secondly, it offers empirical data on the effects of natural disasters and coping techniques and the function of information technology in agriculture production, on which the empirical literature is quiet. it differentiates between present and inter-temporal impacts and between incidence and severity effects. the organization of the study is as follows: section 2 gives a detailed literature analysis, section 3 explains data and methodology, section 3 presents empirical results, and section 4 closes and raises implications. 2. literature review 2.1 information technology and vietnamese agriculture sector agriculture is recognized as a significant economic growth industry in vietnam. surprisingly, rapid industrialization growth damaged the country's agricultural sector in terms of gdp and employment. yet, agriculture remains a vital component of the economy due to its competitive advantage over countries in comparable locations (fernández-pastor et al., 2016). since the 1990s, vietnam has maintained its position as one of the major exporters of "rice, coffee, pepper, and cashew nuts." in addition, production and exports of fruits and vegetables, rubber, and cassava rose; the export of vegetables and fruits exceeded that of rice. it is mentioned that the vietnamese government's efforts contributed to the country's effective advancement in agricultural production technologies. diverse agricultural practices are developed and disseminated to cultivate distinct rice varieties and essential commodities (mammo, 2015). the vietnamese government is likewise interested in encouraging innovative agricultural production practices. private corporations also strive to invest in the european agricultural system to develop high-tech goods. however, the government's legislative structure regulating agricultural production techniques is murky. but, the government is now targeting these businesses to provide adequate support for the transition to high-tech agriculture (msengezi et al., 2018). regrettably, high-tech ghg investments cannot deliver quality returns on their own. hence, production management must be enhanced further to enhance quality and add value by "regulation of water input, sunlight exposure, and growing speeds" (sadiq et al., 2023b). this specialized agricultural strategy necessitates in-depth knowledge of all aspects with the potential to affect yield. however, it is regrettable that enterprises involved in hightech agriculture in vietnam tend to have inadequate knowledge of production factors, techniques, and markets (sakata, 2019). ict application in agriculture is crucial, and ict use in agricultural production has become prevalent, particularly in the european market. this is because it helps meet retail industry leaders' quality and safety standards. also, it aids in resolving key problems such as labor shortages. this prompted us to examine the relationship between technology and agricultural productivity, which could benefit the vietnamese agricultural sector (chien et al., 2021; wolfert et al., 2017). 2.2 natural disaster and agricultural production climate complexity and natural catastrophes are thought to impact crop output considerably. it not only harms agbioforum, 25(1), 2023 | 36 dinh and ngo. — natural disaster, information technology agricultural output but also influences cropping decisions. in vietnam, disaster-related agricultural losses are caused by floods and severe storms, which damage crops and the infrastructure and irrigation system. complicating the problem are the accompanying agricultural diseases, which ultimately negatively influence crop output. since 2000, it is estimated that the country has lost about 10 million tonnes of rice due to floods and storms. also, the tragedy resulted in the flooding of around 120,00km2 of rice fields (undp, 2015). due to the difficulties in estimating the crop production damage induced by a natural hazard, the claims also show that the stated loss statistics may understate the actual damage. it is also believed that natural disasters indirectly affect agricultural output due to agricultural behavior changes. for example, if summer crop sowing is delayed due to rainfall, the crops become more susceptible to flooding in the fall. it is also believed that the effects of natural disasters and climate change vary by region. several studies have also calculated the agricultural impact of natural disasters (moslehpour et al., 2022). for example, loayza et al. (2009) found that droughts and storms harm agriculture. nonetheless, research indicates that floods have a favorable impact. similarly, sivakumar (2005) suggested that the major effect of natural disasters on agriculture is negative. according to another study, the unfavorable effects of natural disasters suggest a lack of agricultural self-sufficiency, particularly in nations with low income, poverty, and hunger (israel et al., 2012; trinh et al., 2021). fragments of earlier research, particularly in vietnamese, confirm that climate change and natural catastrophes harm agricultural production. it is believed that by 2050, due to natural disasters and climate complications, rice output may become sluggish and, in some circumstances, decrease by between 2 and 7 million tonnes. there is little doubt, according to studies, that natural disasters and climate change represent a significant threat to the nation, even impeding its socioeconomic progress (sadiq et al., 2023a). moreover, persistent temperature fluctuations, unexpected weather patterns, and frequent natural disasters harm industries, regions, and people's lives, particularly in rural areas (ipcc, 2014). owing to the severity of the threat posed by natural disasters, the government of vietnam has enacted several national measures to enhance adaptability and draw attention to the issue. nonetheless, the difficulties remain unresolved due to corruption and a lack of community coordination (chein et al., 2022; undp, 2015). literature also indicates that the vietnamese government has not yet developed a viable strategy to address the issue of climate change on a national scale. therefore, it is essential to monitor the relationship so that appropriate policy measures can be implemented to deal with the situation. (huang et al., 2022) the study also demonstrates that natural disasters and climatic complexity harm crop yield. the effect, however, is heterogeneous, as it varies by geography and crop situation. for example, in the central highlands and north-west, rice is one of the most vulnerable crops to natural calamities (spencer & polachek, 2015). 3. data and methods 3.1 data the data are from the 2008, 2010, 2012, 2014, and 2016 vietnamese access to resources household survey (varhs). farms are asked to name specific natural disasters to collect information regarding natural disasters. in the 2008 and 2010 surveys, natural disasters were collected in a generic sense; however, from 2012 to 2016, floods, droughts, and typhoons were recorded specifically. the questionnaire also gives information regarding natural catastrophes' frequency (current and previous year), intensity, and persistence (completely recovered, partially recovered, and still suffering severely). the questionnaire includes the coping techniques employed by households in response to each (specific) natural disaster, as well as estimates of the losses experienced by farms as a result of (specific) natural disasters, expressed in vietnamese dong terms (vietnam dong, vnd). coping strategies include: (1) "household (hh) did nothing to cope with shock(s)"; (2) "hh reduced consumption to cope with shock(s)"; (3) "hh sold assets to cope with shock(s)"; (4) "hh used savings to cope with shock(s)"; (5) "hh got assistance from relatives to cope with shock(s)"; (6) "hh got assistance from the government to cope with shock(s)"; (7) "hh borrowed money to cope with shock(s)"; and (8) "hh got insurance payment to cope with shock(s)." the varhs section on information technology contains information on technology. the technology of information includes telephones, televisions, and satellites. the areas of agricultural land, crop agriculture, livestock, forestry, aquaculture, and agricultural services provide data on agricultural production. 3.2 empirical approach our empirical investigation focuses on the extent to which natural disaster affects farm-level agriculture productivity and the extent to which farms manage to cope with the negative effects of natural disaster, particularly the role of information technology in mitigating the negative effects of natural disasters within the framework of the traditional cobb-douglas production function as illustrated by te'o (1997). we employ three phases of empirical research to investigate these topics. 3.3 impact of natural disasters on agriculture production secondly, we investigate the effects of natural disasters on agricultural production at the farm level. under specific conditions, the relationship between natural disasters and the depletion of farm produce can be determined using a panel fixed-effects technique. using a fixed-effects model that adjusts for time-invariant farm heterogeneity, we leverage the panel dimension of our data. time-varying agbioforum, 25(1), 2023 | 37 dinh and ngo. — natural disaster, information technology farm characteristics are also included as control variables. the most important explanatory factors are natural catastrophes' frequency, severity, and duration. a fixedeffects estimate technique will eliminate any timeinvariant unobserved heterogeneity while including control variables for inputs will capture any remaining time-varying heterogeneity. the whole farm-level fixed effects model is given by (model 1): 𝑌𝑖𝑡 = (𝛼1𝐿𝐴𝐵𝑖𝑡 + 𝛼2𝐿𝐴𝑁𝐷𝑖𝑡 + 𝛼3𝐶𝐴𝑃𝑖𝑡 + 𝛼4𝑆𝐻𝑂𝐶𝐾_𝑅𝐸𝐶𝑖𝑡) +𝛽 ∑ 𝑁𝐴𝑇𝑖𝑡 𝑗3 1 + 𝛿 ∑ 𝐿𝑂𝑆𝑆𝑖𝑡 𝑗3 1 + ∑ 𝑁𝐴𝑇𝐿𝑂𝑆𝑆𝑖𝑡 𝑗3 1 + 𝜏𝑡 + 𝑢𝑖 +휀𝑖𝑡 (1) where: yit is agriculture production measured by the output values per hectare. labit, landit, and capit represent a vector of farm production inputs such as labor (total of hh working numbers), land (arable land), and capital (valuable assets), respectively. shock_recit denotes (1) shocks apart from natural disasters, namely: biological shocks, demographic and social shocks, and economic shocks, and (2) the recoveries from shocks of all kinds. natj it (j=1,2) are dummy variables indicating natural disasters occurred in the survey year (t) and one year ago (t-1), respectively. if the current natural disaster negatively affected agriculture output, we would expect the coefficients on this term to be negative and statistically significant (the current occurrence effect). if the past natural disaster resulted in a loss in agriculture output, we would expect the coefficients on these terms to be negative and statistically significant (the inter-temporal occurrence effect). lossj it (j=1,3) are variables indicating total loss from a natural disaster that occurred in the survey year (t) and one year ago (t-1), respectively. natlossj it (j=1,3) is the interaction between natural disasters and total loss from natural disasters that occurred in survey year (t) and one year ago (t-1), respectively. suppose natural disasters are severe, resulting in a loss in agriculture output. in that case, we expect the coefficient on these interaction terms to be negative and statistically significant (the current and inter-temporal severity effects, respectively). t represents time dummies, ui is a farm-specific fixed effect, and it is the farm random error term. we assume that regional differences, which control for agriculture productivity variations across regions, are subsumed within the farm fixed effect while the time dummies control for technological changes over time. model (1) controls for (1) other shocks apart from natural shocks and (2) shock recovery from natural disasters and other shocks. we explore model (1) into two models: (1) model (1.1) with natural disasters in general (general model), (2) model (1.2) with specific natural disasters (namely: floods, droughts, and typhoons) (specific model). in each group of the models, we estimate models with natural disasters (panel a), models with natural disasters and losses (panel b), and models with interactions between natural disasters and their losses (panel c). 3.4 impacts of natural disasters and coping strategies on agriculture production in the second phase of our research, we investigate how coping mechanisms can mitigate the decline in agricultural output. we consider the following eight categories of coping strategies: adaptation techniques include: (1) "household did nothing to cope with shock(s);" (2) "household reduced consumption to cope with shock(s);" (3) "household sold assets to cope with shock(s);" (4) "household used savings to cope with shock(s);" (5) "household received help from relatives to cope with shock(s);" (6) "household received help from the government to cope with shock(s);" (7) household borrowed money to cope with shock(s); a specified model is as follows (model 2): 𝑌𝑖𝑡 = (𝛼1𝐿𝐴𝐵𝑖𝑡 + 𝛼2𝐿𝐴𝑁𝐷𝑖𝑡 + 𝛼3𝐶𝐴𝑃𝑖𝑡 + 𝛼4𝑆𝐻𝑂𝐶𝐾_𝑅𝐸𝐶𝑖𝑡) + 𝛽 ∑ 𝑁𝐴𝑇𝑖𝑡 𝑗3 1 + 𝛿 ∑ 𝐿𝑂𝑆𝑆𝑖𝑡 𝑗3 1 + ∑ 𝑁𝐴𝑇𝐿𝑂𝑆𝑆𝑖𝑡 𝑗3 1 + 𝜒 ∑ 𝐶𝑂𝑃𝑖𝑡 𝑗7 1 + ∑ 𝐶𝑂𝑃𝑁𝐴𝑇𝑖𝑡 𝑗7 1 +𝜏𝑡 + 𝑢𝑖 +휀𝑖𝑡 (2) where: copj it (j=1 8) are dummy variables indicating seven specific coping strategies conducted in the survey year (t) and one year ago (t-1), respectively. copnatj it (j=1 8) are the interactions between natural disasters and seven specific coping strategies in survey year (t) and one year ago (t-1), respectively. assume coping mechanisms aid in mitigating the loss of agricultural production caused by a natural disaster. in this situation, we anticipate that the coefficients of these interaction terms will be positive and statistically significant (the positive current and intertemporal coping-occurrence effects). if not, negative coefficients (the adverse current and inter-temporal coping-occurrence effects) are statistically significant. model (2) is separated into two models: (1) model (2.1) with natural disasters in general and (2) model (2.2) with specific natural catastrophes (namely: floods, droughts, and typhoons). in each model category, we estimate models with coping strategies (panel a) and models with natural catastrophe and coping strategy interactions (panel b). 3.5 the impacts of natural disasters, coping strategies, and information technology on agricultural production in the third step of our research, we consider how information technology can facilitate coping mechanisms and, consequently, lessen farm productivity depletion. four information technology proxies are considered: telephones, televisions, computers, and the internet. the following describes a specific model (model 3): agbioforum, 25(1), 2023 | 38 dinh and ngo. — natural disaster, information technology table 1: statistical description, 2008-2016 mean sd. within sd. between sd. agriculture productivity (value per hectare) 2.24 3.18 2.12 2.36 land (arable land) (ln) 0.45 0.46 0.43 0.15 labor (total of hh working numbers) 2.75 1.53 1.27 0.85 assets values (ln) 7.02 1.93 1.26 1.45 it telephones 0.74 0.44 0.26 0.35 televisions 0.94 0.24 0.16 0.18 sattelite 0.33 0.47 0.27 0.39 natural shocks natural disaster (t) 0.13 0.34 0.17 0.29 floods (t) 0.01 0.12 0.05 0.10 droughts (t) 0.03 0.16 0.07 0.14 typhoons (t) 0.02 0.14 0.06 0.13 natural disaster (t-1) 0.05 0.22 0.10 0.20 flood (t-1) 0.00 0.07 0.03 0.06 drought (t-1) 0.01 0.11 0.05 0.10 typhoon (t-1) 0.01 0.07 0.03 0.06 shock recovery natural disaster (t) 0.20 0.58 0.30 0.50 floods (t) 0.02 0.20 0.09 0.17 droughts (t) 0.05 0.31 0.14 0.27 typhoons (t) 0.03 0.23 0.11 0.21 natural disaster (t-1) 0.08 0.35 0.17 0.31 flood (t-1) 0.01 0.11 0.05 0.09 drought (t-1) 0.02 0.20 0.09 0.18 typhoon (t-1) 0.01 0.11 0.05 0.10 losses from shocks (‘000 vnd) natural disaster (t) 502.94 4384.71 2030.06 3886.66 floods (t) 64.38 3131.99 1400.26 2801.68 droughts (t) 104.28 1660.23 741.20 1485.66 typhoons (t) 87.14 1476.52 658.45 1321.64 natural disaster (t-1) 239.50 2745.62 1243.25 2448.13 flood (t-1) 20.38 785.98 352.30 702.64 drought (t-1) 40.09 1064.28 475.11 952.39 typhoon (t-1) 18.70 526.47 234.89 471.18 other shocks biological shocks (t) 0.17 0.38 0.21 0.31 demographic and social shocks (t) 0.05 0.21 0.10 0.19 economic shocks (t) 0.08 0.28 0.14 0.24 biological shocks (t-1) 0.03 0.17 0.08 0.15 demographic and social shocks (t-1) 0.06 0.23 0.10 0.21 economic shocks (t-1) 0.01 0.11 0.05 0.10 coping strategies cope 1: "hh did nothing to cope with shock(s)." 0.19 0.39 0.20 0.33 cope 2 "hh reduced consumption to cope with shock(s)." 0.21 0.41 0.21 0.35 cope 3 "hh sold assets to cope with shock(s)." 0.03 0.17 0.08 0.15 cope 7 "hh used savings to cope with shock(s)." 0.06 0.24 0.11 0.21 cope 8 "hh got assistance from relatives to cope with shock(s)." 0.05 0.21 0.10 0.18 cope 9 "hh got assistance from the government to cope with shock(s)." 0.01 0.11 0.05 0.10 cope 10 "hh borrowed money to cope with shock(s)." 0.04 0.19 0.09 0.17 cope 11: "hh got insurance payment to cope with shock(s)." 0.01 0.12 0.05 0.11 coping strategies to natural disasters cope1_natural_s0 0.13 0.34 0.17 0.29 cope1_natural_s1 0.04 0.20 0.09 0.17 cope1_drought_s0 0.01 0.11 0.05 0.10 cope1_typhoon_s0 0.01 0.11 0.05 0.10 cope2_natural_s0 0.14 0.34 0.17 0.30 cope2_ natural_s1 0.06 0.23 0.11 0.20 cope2_flood_s0 0.01 0.10 0.05 0.09 cope2_drought_s0 0.01 0.12 0.06 0.10 cope2_typhoon_s0 0.01 0.10 0.05 0.09 cope3_natural_s0 0.02 0.14 0.06 0.12 cope3_natural_s1 0.01 0.11 0.05 0.10 cope7_natural_s0 0.03 0.18 0.09 0.16 cope7_natural_s1 0.02 0.12 0.06 0.11 cope8_natural_s0 0.01 0.12 0.05 0.10 cope10_natural_s0 0.02 0.14 0.06 0.12 notes: coping strategies to natural disasters: cope1_natural_s0: # "hh did nothing to cope with shock(s)"; cope1_natural_s1: # "hh did nothing to cope with shock(s)"; cope1_drought_s0: # "hh did nothing to cope with shock(s)"; cope1_typhoon_s0: # "hh did nothing to cope with shock(s)"; cope2_natural_s0: # "hh reduced consumption to cope with shock(s)"; cope2_natural_s1: # "hh reduced consumption to cope with shock(s)"; cope2_flood_s0: 3 "hh reduced consumption to cope with shock(s)"; cope2_drought_s0: # "hh reduced consumption to cope with shock(s)"; cope2_typhoon_s0: # "hh reduced consumption to cope with shock(s)"; cope3_natural_s0: # "hh sold assets to cope with shock(s)"; agbioforum, 25(1), 2023 | 39 dinh and ngo. — natural disaster, information technology cope3_natural_s1: # "hh sold assets to cope with shock(s)"; cope7_natural_s0: # "hh used savings to cope with shock(s)"; cope7_natural_s1: # "hh used savings to cope with shock(s)"; cope8_natural_s0: # "hh got assistance from relatives to cope with shock(s)"; cope10_natural_s0: # "hh borrowed money to cope with shock(s)". 𝑌𝑖𝑡 = (𝛼1𝐿𝐴𝐵𝑖𝑡 + 𝛼2𝐿𝐴𝑁𝐷𝑖𝑡 + 𝛼3𝐶𝐴𝑃𝑖𝑡 + 𝛼4𝑆𝐻𝑂𝐶𝐾_𝑅𝐸𝐶𝑖𝑡) + 𝛽 ∑ 𝑁𝐴𝑇𝑖𝑡 𝑗 3 1 + 𝛿 ∑ 𝐿𝑂𝑆𝑆𝑖𝑡 𝑗 3 1 + +∑ 𝑁𝐴𝑇𝐿𝑂𝑆𝑆𝑖𝑡 𝑗3 1 + 𝜒 ∑ 𝐶𝑂𝑃𝑖𝑡 𝑗7 1 + ∑ 𝐶𝑂𝑃𝑁𝐴𝑇𝑖𝑡 𝑗7 1 + ∑ 𝐼𝑇𝐸𝐶𝐻𝑖𝑡 𝑗7 1 + ∑ 𝐶𝑂𝑃𝐼𝑇𝐸𝐶𝐻𝑖𝑡 𝑗7 1 + 𝜏𝑡 + 𝑢𝑖 +휀𝑖𝑡 (3) where: itechj it (j=1 3) are dummy variables indicating four proxies of information technology conducted in survey year (t) and one year ago (t-1), respectively. copitechj it (j=1 8) are the interactions between four proxies of information technology and seven specific coping strategies in survey year (t) and one year ago (t-1), respectively. if information technology helps to ease the coping strategies, we expect the coefficients on these interaction terms to be positive and statistically significant; if not, the coefficients can be negative and statistically significant. we explore model (3) into two models: (1) model (3.1) with natural disasters in general, and (2) model (3.2) with specific natural disasters (namely: floods, droughts, and typhoons). in each group of the models, we estimate models with it (panel a) and models with the interactions between coping strategies and information technology (panel b). 1. empirical results 1.1 statistical description table 1 presents a statistical description of the variables from 2008 to 2016. overall, the substantial within-household variation over time supports using a fixed-effects model specification (table 1). 3.6 estimation results 3.6.1 impact of natural disasters on agriculture production table 2 displays empirical data from (1) model (1.1) with natural disasters in general (general model) and (2) model (1.2) with specific natural disasters (namely, floods, droughts, and typhoons) (specific model). models with natural disasters (panel a), models with natural disasters and losses (panel b), and models with interactions between natural disasters and their losses (panel c) are estimated for each model group (panel c). model 1.1's panel a demonstrates that biological shocks with full recovery positively influence agricultural productivity, whereas natural disasters still suffering have a positive effect on agriculture production. a possible reason is that the losses are small or insignificant. the coefficients of losses from natural disasters in panel b of model 1.1 are minimal, suggesting that the losses may be small and insignificant. in addition, when losses are included, natural disasters in the past have proven to harm agricultural production. when losses from each type of natural catastrophe are evaluated, panel c of model 1.1 verifies the consequences of natural disasters illustrated in panels a and b. natural disasters, in general, may conceal their effects on agricultural productivity, as different forms of natural disasters may have varying effects on agricultural production. model 1.2 presents the precise effects of specific natural disasters in panel a by independently considering floods, droughts, and typhoons. complete recovery from floods and droughts has a positive effect on agricultural production. panel b of model 1.2 demonstrates that once losses from specific natural disasters have been compensated for, specific natural disasters with partial recovery from the shocks continue to harm agricultural productivity. 3.6.2 impacts of natural disasters and coping strategies on agriculture production the results of (1) model (2.1) with natural disasters in general and (2) model (2.2) with specific natural disasters is presented in table 3. (namely: floods, droughts, and typhoons). in each model group, we estimate models with coping strategies (panel a) and models with natural catastrophe and coping strategy interactions (panel b) (panel b). panel a of model 1.1 demonstrates that certain coping strategies, notably "borrowing money to cope with natural shocks" and "selling assets to cope with natural shocks," have beneficial impacts. however, agricultural productivity may decline once a household decides to limit consumption in response to a natural disaster. as coping methods are implemented in reaction to natural disasters, as shown in panel b of model 2.1, "households choosing to cut consumption to cope with natural shock(s)" or "households selling assets to cope with shocks" become statistically significant. in contrast, "households that did nothing to cope with natural shock(s)" or "households that borrowed money to cope with natural shock(s)" may experience a decrease in agricultural output, and the burdens of borrowing might harm agricultural output. in model 2.2, specific natural disasters are considered. panel a of model 2.2 reveals that "hh lowered consumption to cope with the flood(s)" can result in a decrease in agricultural output, but "hh did nothing to cope with drought (s)" can increase agricultural output. the effects are confirmed when flood and drought coping methods are used (panel b of model 2.2). 3.6.3 impacts of natural disasters, coping strategies and information technology on agricultural production the empirical results of (1) model (3.1) with natural disasters in general and (2) model (3.2) with particular natural disasters is presented in table 4. (namely: floods, droughts, and typhoons). in each model group, we estimate models with it (panel a) and models with interactions between coping techniques and it (panel b) (panel b). agbioforum, 25(1), 2023 | 40 dinh and ngo. — natural disaster, information technology table 2: impact of natural disasters on agriculture production, 2008-2016 model 1.1 model 1.2 (1) (2) (3) (4) (5) variables panel a panel b panel c panel a panel b land (arable land) (ln) 0.725*** 0.727*** 0.746*** 0.714*** 0.696*** (0.148) (0.148) (0.148) (0.148) (0.148) labor (total of hh working numbers) -0.078 -0.078 -0.077 -0.073 -0.076 (0.072) (0.073) (0.072) (0.072) (0.072) labor (total of hh working numbers), squared 0.009 0.009 0.010 0.009 0.010 (0.010) (0.010) (0.010) (0.010) (0.010) assets values (ln) 0.515*** 0.513*** 0.516*** 0.516*** 0.514*** (0.017) (0.017) (0.017) (0.017) (0.017) re1_floodr2 1.021** (0.489) re0_droughtr2 0.565** (0.259) re0_droughtr3 -0.769*** -1.341*** (0.222) (0.282) re0_droughtr4 1.056*** (0.386) re1_droughtr2 0.568* (0.304) re1_typhoonr2 -0.707* (0.419) re1_typhoonr3 1.432** 2.300*** (0.630) (0.703) re1_typhoonr4 -4.199*** (1.451) re0_private2 0.307** 0.304** 0.299** 0.336** 0.344** (0.137) (0.137) (0.137) (0.137) (0.137) re0_economica2 0.339** 0.334** 0.339** 0.362** 0.368** (0.167) (0.167) (0.167) (0.167) (0.166) re0_economica4 0.583*** 0.589*** 0.605*** 0.591*** 0.622*** (0.196) (0.196) (0.196) (0.195) (0.196) re1_economica2 0.924*** 0.906*** 0.958*** 0.972*** 0.633* (0.297) (0.297) (0.297) (0.297) (0.345) year_3 -0.469*** -0.462*** -0.496*** -0.482*** -0.473*** (0.059) (0.059) (0.059) (0.059) (0.059) year_4 -0.463*** -0.455*** -0.487*** -0.483*** -0.472*** (0.062) (0.062) (0.062) (0.062) (0.062) re0_natural14 0.485** 0.467** 0.489** (0.209) (0.217) (0.209) re1_natural14 -0.639 -0.785* -0.629 (0.396) (0.409) (0.396) re0_natural22 0.386*** 0.378*** 0.469*** (0.090) (0.090) (0.094) naturalloss_s0 0.004 agbioforum, 25(1), 2023 | 41 dinh and ngo. — natural disaster, information technology table 2: continued (0.011) naturalloss_s1 0.023 (0.016) llosts0_nat2 -0.050*** (0.017) re1_droughtr3 -1.356*** (0.461) re1_droughtr4 -1.193* (0.711) re1_economica4 -0.883* (0.523) llosts0_drought 0.095*** (0.029) llosts1_flood 0.088* (0.049) llosts1_drought 0.162*** (0.046) llosts1_typhoon -0.153*** (0.052) llosts1_eco 0.111* (0.060) constant -1.584*** -1.587*** -1.590*** -1.559*** -1.539*** (0.154) (0.154) (0.154) (0.154) (0.154) observations 10,655 10,655 10,655 10,655 10,655 r-squared 0.118 0.118 0.119 0.120 0.121 number of hh 2,131 2,131 2,131 2,131 2,131 f statistic 87.38 75.88 81.83 64.48 58.52 f for u_i=0 2.831 2.803 2.837 2.857 2.856 log-likelihood -22557 -22556 -22552 -22543 -22538 r-squared within model 0.118 0.118 0.119 0.120 0.121 r-squared between model 0.309 0.312 0.309 0.293 0.290 r-squared overall model 0.204 0.206 0.205 0.199 0.198 notes: standard errors in parentheses; *** p<0.01, ** p<0.05, * p<0.1 agbioforum, 25(1), 2023 | 42 dinh and ngo. — natural disaster, information technology table 3: impacts of natural disasters and coping strategies on agriculture production, 2008-2016 model 2.1 model 2.2 (1) (2) (3) (4) variables panel a panel b panel a panel b land (arable land) (ln) 0.731*** 0.741*** 0.701*** 0.693*** (0.148) (0.148) (0.148) (0.148) labor (total of hh working numbers) -0.064 -0.072 -0.072 -0.072 (0.072) (0.072) (0.072) (0.072) labor (total of hh working numbers), squared 0.008 0.009 0.009 0.009 (0.010) (0.010) (0.010) (0.010) assets values (ln) 0.514*** 0.513*** 0.514*** 0.514*** (0.017) (0.017) (0.017) (0.017) re0_natural14 0.517** 0.454** (0.210) (0.209) re1_natural14 -0.658* -0.559 (0.395) (0.413) re0_natural22 0.509*** 0.482*** (0.096) (0.094) re0_private2 0.290** 0.291** 0.337** 0.344** (0.137) (0.137) (0.137) (0.137) re0_economica4 0.623*** 0.607*** 0.580*** 0.576*** (0.196) (0.195) (0.195) (0.195) llosts0_nat2 -0.045*** -0.049*** (0.017) (0.017) llosts1_eco 0.106* 0.157*** 0.094 (0.059) (0.051) (0.059) cope1_natural_s1 0.389** (0.188) cope2_natural_s1 -0.370** (0.171) cope7_natural_s1 0.541*** 1.043*** (0.198) (0.322) int_cope1_natural_s1 -0.595** (0.257) int_cope2_natural_s1 0.573** (0.227) int_cope3_natural_s0 0.699** (0.297) int_cope3_natural_s1 0.760** (0.334) int_cope7_natural_s1 -0.906** (0.421) year_3 -0.489*** -0.484*** -0.488*** -0.483*** (0.059) (0.059) (0.059) (0.059) year_4 -0.488*** -0.476*** -0.484*** -0.481*** (0.062) (0.062) (0.062) (0.062) re1_economica2 0.630* 0.944*** 0.665* (0.344) (0.296) (0.344) agbioforum, 25(1), 2023 | 43 dinh and ngo. — natural disaster, information technology table 3: continued cope2_natural_s0 -0.198** (0.079) cope3_natural_s0 0.475*** (0.184) re0_droughtr3 -1.200*** -1.202*** (0.244) (0.244) re1_droughtr3 -1.346*** -1.348*** (0.461) (0.461) re1_droughtr4 -1.140 -1.156 (0.711) (0.711) re1_typhoonr3 2.324*** 2.321*** (0.703) (0.703) re0_economica2 0.349** 0.349** (0.166) (0.166) llosts1_flood 0.084* 0.083* (0.049) (0.049) llosts1_drought 0.164*** 0.165*** (0.046) (0.046) llosts1_typhoon -0.149*** -0.149*** (0.052) (0.052) floodloss_s0 0.122** 0.122** (0.050) (0.050) cope1_drought_s0 1.063*** (0.237) cope2_flood_s0 -0.971** (0.407) int_cope1_drought_s0 1.065*** (0.237) int_cope2_flood_s0 -0.976** (0.407) constant -1.584*** -1.591*** -1.547*** -1.540*** (0.154) (0.154) (0.154) (0.154) observations 10,655 10,655 10,655 10,655 r-squared 0.121 0.122 0.122 0.122 number of hh 2,131 2,131 2,131 2,131 f statistic 68.56 56.09 59.11 56.43 f for u_i=0 2.821 2.831 2.865 2.865 log-likelihood -22541 -22534 -22531 -22530 r-squared within model 0.121 0.122 0.122 0.122 r-squared between model 0.305 0.313 0.289 0.288 r-squared overall model 0.205 0.209 0.198 0.197 notes: standard errors in parentheses; *** p<0.01, ** p<0.05, * p<0.1 agbioforum, 25(1), 2023 | 44 dinh and ngo. — natural disaster, information technology panel a of model 3.1 describes the additional effects of information technology on phones, television, and satellites. we discover the negative effects of television on agricultural production, which may indicate that television programs do not successfully assist farmers in enhancing their agricultural knowledge and practices. panel b1 of model 3.1 demonstrates the impact of digital technologies on coping with natural disasters. it is demonstrated that mobile phones have a big and positive effect on agricultural production when they prevent farmers from responding to natural calamities. farmers who continue to reduce their consumption in response to natural disasters may experience reduced production. regarding television viewing, "hh reduced consumption to cope with shocks" leads to declining agricultural output. agriculture production can grow for the scenarios "hh did nothing to cope with shocks" and "hh borrowed money to cope with shocks." using satellites yields results that are comparable to those obtained through the use of mobile phones. in short, the results indicate that information technology has few effects on various coping techniques. its effects are limited in providing farmers with the knowledge to deal with natural disasters and reduce consumption in response to natural shocks (s). table 4: impacts of natural disasters, coping strategies and information technology on agricultural production, 2008-2016 model 3.1 model 3.2 (1) (2) (3) (4) (5) (6) (7) variables panel a panel b1 panel b2 panel b3 panel a panel b1 panel b2 land (arable land) (ln) 0.694*** 0.691*** 0.696*** 0.712*** 0.665*** 0.665*** 0.666*** (0.146) (0.146) (0.146) (0.146) (0.146) (0.146) (0.146) labor (total of hh working numbers) -0.085 -0.084 -0.082 -0.090 -0.087 -0.084 -0.087 (0.071) (0.071) (0.071) (0.071) (0.071) (0.071) (0.071) labor (total of hh working numbers), squared 0.010 0.009 0.009 0.011 0.010 0.009 0.010 (0.010) (0.010) (0.010) (0.010) (0.010) (0.010) (0.010) assets values (ln) 0.675*** 0.673*** 0.677*** 0.677*** 0.676*** 0.677*** 0.677*** (0.019) (0.019) (0.019) (0.019) (0.019) (0.019) (0.019) re0_natural14 0.424** 0.386* 0.430** 0.417** (0.206) (0.210) (0.206) (0.206) re0_natural22 0.434*** 0.428*** 0.482*** 0.455*** (0.093) (0.100) (0.095) (0.093) re0_private2 0.245* 0.254* 0.250* 0.252* 0.286** 0.287** 0.284** (0.135) (0.135) (0.135) (0.135) (0.135) (0.135) (0.135) re0_economica2 0.292* 0.311* 0.317* 0.311* (0.164) (0.164) (0.164) (0.164) re0_economica4 0.531*** 0.556*** 0.553*** 0.558*** 0.523*** 0.517*** 0.523*** (0.193) (0.193) (0.193) (0.193) (0.193) (0.193) (0.193) llosts0_nat2 -0.068*** -0.065*** -0.064*** -0.066*** (0.017) (0.017) (0.017) (0.017) llosts1_eco 0.153*** 0.155*** 0.156*** 0.154*** (0.050) (0.050) (0.050) (0.050) cope7_natural_s1 0.460** 0.775*** 0.925*** (0.198) (0.299) (0.302) int_cope1_natural_s1 -0.650*** -0.567*** -0.679*** -0.442** (0.246) (0.213) (0.240) (0.186) int_cope2_natural_s1 0.270* 0.343** 0.661*** 0.524*** (0.147) (0.151) (0.215) (0.165) int_cope3_natural_s0 0.939*** 0.991*** 0.919*** (0.290) (0.291) (0.289) int_cope7_natural_s1 -0.560 -0.584 -0.687* (0.396) (0.391) (0.397) phone_ 0.010 0.002 -0.002 -0.003 0.036 0.032 0.037 (0.065) (0.068) (0.065) (0.065) (0.064) (0.064) (0.064) tv_ -2.337*** -2.341*** -2.325*** -2.343*** -2.325*** -2.324*** -2.341*** (0.146) (0.146) (0.147) (0.146) (0.146) (0.146) (0.146) satel_ 0.044 0.042 0.043 0.105* 0.047 0.045 0.048 (0.057) (0.057) (0.057) (0.061) (0.057) (0.057) (0.057) p_cope1_natural_s0 0.191** (0.095) p_cope1_natural_s1 0.374** (0.191) p_cope2_natural_s0 -0.293*** (0.093) year_3 -0.611*** -0.607*** -0.610*** -0.608*** -0.610*** -0.609*** -0.611*** (0.059) (0.059) (0.059) (0.059) (0.059) (0.059) (0.059) year_4 -0.602*** -0.600*** -0.611*** -0.612*** -0.613*** -0.610*** -0.612*** (0.063) (0.063) (0.063) (0.063) (0.063) (0.063) (0.063) cope1_natural_s1 0.391** agbioforum, 25(1), 2023 | 45 dinh and ngo. — natural disaster, information technology table 2: continued (0.182) t_cope1_natural_s1 0.432** (0.183) t_cope2_natural_s0 -0.186** (0.082) t_cope2_natural_s1 -0.373** (0.168) t_cope7_natural_s1 0.865*** (0.308) s_cope1_natural_s1 0.512** (0.217) s_cope2_natural_s0 -0.304** (0.129) s_cope2_natural_s1 -0.661*** (0.207) re0_droughtr3 -0.953*** -0.870*** -0.943*** (0.241) (0.237) (0.242) re1_droughtr3 -1.207*** -1.207*** -1.208*** (0.437) (0.437) (0.437) re1_typhoonr3 2.316*** 2.316*** 2.301*** (0.693) (0.693) (0.693) re1_economica2 0.908*** 0.906*** 0.905*** (0.292) (0.292) (0.292) llosts1_flood 0.095* 0.095** 0.095* (0.048) (0.048) (0.048) llosts1_drought 0.155*** 0.155*** 0.155*** (0.042) (0.042) (0.042) llosts1_typhoon -0.136*** -0.136*** -0.136*** (0.051) (0.051) (0.051) floodloss_s0 0.122** 0.103** 0.122** (0.049) (0.044) (0.049) cope1_drought_s0 1.101*** (0.234) cope2_flood_s0 -0.943** -0.943** (0.401) (0.401) p_cope1_drought_s0 1.112*** (0.252) p_cope2_flood_s0 -0.886** (0.390) t_cope1_drought_s0 1.097*** (0.240) constant -0.444*** -0.424** -0.449*** -0.456*** -0.444*** -0.453*** -0.436** (0.171) (0.171) (0.171) (0.171) (0.171) (0.171) (0.171) observations 10,655 10,655 10,655 10,655 10,655 10,655 10,655 r-squared 0.145 0.148 0.147 0.148 0.147 0.147 0.147 number of hh 2,131 2,131 2,131 2,131 2,131 2,131 2,131 f statistic 76.14 61.65 63.90 64.36 66.79 66.63 66.72 f for u_i=0 2.782 2.781 2.780 2.790 2.806 2.802 2.804 log-likelihood -22388 -22370 -22375 -22370 -22376 -22377 -22376 r-squared within model 0.145 0.148 0.147 0.148 0.147 0.147 0.147 r-squared between model 0.371 0.363 0.360 0.364 0.349 0.350 0.350 r-squared overall model 0.240 0.238 0.237 0.240 0.232 0.232 0.232 notes: standard errors in parentheses; *** p<0.01, ** p<0.05, * p<0.1 4. conclusions and implication agriculture is among the most susceptible industries to natural calamities. technology is crucial to agricultural output. while agricultural machinery directly impacts agricultural output by increasing yield and quality, information technology may influence coping mechanisms for responding to natural disasters and so increase agricultural productivity. this paper examines (1) the degree to which agriculture production in vietnam is impacted by natural disasters such as floods, drought, typhoons, and landslides, (2) how coping strategies mitigate the negative effects of natural disasters, and (3) how information technology influences the selection of coping strategies in response to a natural disaster. our primary premise is that natural catastrophes have a detrimental influence on agricultural production and that coping mechanisms might somewhat mitigate these negative effects. in addition, information technology can facilitate the selection of coping measures for natural disasters. the findings suggest that ict applications in vietnam's agricultural sector are still in their infancy. few companies tried to provide services such as giving weather and production-related data. in addition, several companies have created experimental farms that enable production systems to run efficiently through ict. it demonstrates that information technology can improve the efficiency and effectiveness of agricultural methods. there is a continued demand for precision agriculture due agbioforum, 25(1), 2023 | 46 dinh and ngo. — natural disaster, information technology to the increasing interest of urban customers in ecofriendly products and international presence. also, the export potential for agricultural products is expanding due to the country's participation in the free trade agreements. international integration provides the nation with a competitive advantage in ict applications. additionally, participation in ict may be advantageous for the nation, particularly for those who have changed to new commodities, such as corporate farms and farmers. based on the data, it is also possible to suggest that it applications have the potential to increase production efficiency and reduce water consumption and labor-related problems. in addition, government-generated ict-related laws and programs assist business farm operations. yet, when it comes to traditional methods, they may become less useful and relevant, hence limiting the benefits for common farmers. this obstacle could provide difficulty for the government in establishing it-related software and manufacturing processes. hence, the government should remember that applications must be inexpensive and userfriendly. in this way, regular farmers can also receive benefits, and the labor shortage issue in the agriculture sector, which poses a threat to the nation if not resolved promptly, can be resolved. additionally, it dissemination among regular farmers may lower the production risk at the macro level. consequently, the country's potential lies in developing network platforms where information is accessible and useful to everybody. yet, the situation of data ownership may get problematic. hence it is recommended to establish data protection measures. in short, the results indicate that information technology has few effects on various coping techniques. its effects are limited in providing farmers with the knowledge to deal with natural disasters and reduce consumption in response to natural shocks (s). 5. acknowledgment this research is funded by the university of economics ho chi minh city (ueh), vietnam. references alderman, h., hoddinott, j., & kinsey, b. 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https://doi.org/10.1016/j.agsy.2017.01.023 http://hdl.handle.net/10986/2639 http://www.fig.net/resources/proceedings/fig_proceedings/fig2013/ppt/ts07a/ts07a_zevenbergen_kerle_et_al_6607_ppt.pdf http://www.fig.net/resources/proceedings/fig_proceedings/fig2013/ppt/ts07a/ts07a_zevenbergen_kerle_et_al_6607_ppt.pdf http://www.fig.net/resources/proceedings/fig_proceedings/fig2013/ppt/ts07a/ts07a_zevenbergen_kerle_et_al_6607_ppt.pdf agbioforum, 24(3): 64-74. ©2022 agbioforum the use of digital technologies in agricultural cultivation: a case of a developing nation with rice as a staple food majdah muhyiddin zain universitas islam makassar, makassar, indonesia email: majdahmzain.dpk@uim-makassar.ac.id helda ibrahim universitas islam makassar, makassar, indonesia email: heldaibrahim.dty@uim-makassar.ac.id musdalipa universitas islam makassar, makassar, indonesia email: musdalipa.dpk@uim-makassar.ac.id the rapid growth of urbanization and industrialization worldwide has exacerbated the scarcity of arable land resources, highlighting the critical need for sustainable development. to achieve this, it is essential to conduct a comprehensive assessment of the efficiency of cultivated land use. besides, in indonesia, rice farming plays a vital role in providing food for the population. while the green revolution program initiated in 1968 has increased rice productivity, it has also negatively impacted the environment and decreased productivity. hence, the current study aims to examine the influence of sustainable agricultural technologies, including the system of rice intensification, organic farming, and integrated pest management, in enhancing rice productivity, further leading to the enhanced socio-economic development of a nation. this study applied a quantitative research methodology using smartpls 3.0 to analyze data collected from the farmers at local administrative levels of a provinces of indonesia. the study suggests that implementing sustainable agricultural technologies, such as sri, organic farming, and integrated pest management, can increase productivity while supporting economic activities in upstream and downstream sectors. the government and other stakeholders are recommended to prioritize ecological and environmental aspects when considering the adoption of new agricultural technologies. key words: digital technologies, agricultural, cultivation, developing nation, rice, staple food. 1. introduction the agricultural sector plays a crucial role in the economic development of developing countries. it serves multiple purposes, such as providing food for the population, producing raw materials for the industry, and consuming industrial products (hamidi et al., 2022). as rice remains a staple food for a large part of the world, it is essential to secure its availability to ensure national stability (susanto et al., 2021). at the same time, increased productivity, rather than increased harvested area, is the primary contributor to higher production rates. therefore, optimizing rice productivity in paddy fields presents an opportunity to increase national grain production (chien et al., 2022). the modernization of agriculture involves a shift from traditional to more advanced methods, including land management, the use of superior seeds, inorganic fertilizers and pesticides, production facilities, and harvest management (giang, 2022). however, obstacles to increasing food availability remain, such as limited land expansion, water resource degradation, and declining fertility levels in agricultural land (hamidi et al., 2022). over-intensification of agriculture without regard for sustainable agriculture principles, such as high cropping intensity, monoculture, and excessive inorganic fertilizer use, has also led to stagnation in rice productivity growth and instability in production due to pests, diseases, and climate stress (khomiuk et al., 2020). to ensure sustainable production, appropriate agricultural technology must be applied to maintain the productivity of irrigated land for crop planting (liu et al., 2020). also, all developing nations must prioritize sustainable agricultural development in light of increasing tourism development. likewise, regardless of acknowledging the use of sustainable agricultural technologies to enhance productivity (hamidi et al., 2022; giang, 2022; khomiuk et al., 2020), research lacks evidence regarding empirical testing but the influence of sustainable agricultural technologies on staple foods productivity. it may also challenge the government and farmers (rokicki et al., 2021). hence, to address this literature gap, this study aims to describe the implementation of sustainable agricultural technologies, including the system of rice intensification, organic farming, and integrated pest management, specifically for rice farming in a developing nation (indonesian) context. rice is a major agricultural commodity in indonesia, and efforts to improve its productivity date back to 1968 when the green revolution program was initiated to modernize agriculture through technology-based intensification (limpo et al., 2022). indonesia is one of the largest rice producers globally, with rice being a staple food for its population (ekananda, 2022). according to the data provided by the united states department of agriculture (usda), the total rice production in indonesia in 2021/2022 is projected to be around 37.5 million metric tons. however, it's important to note that this is a projection, and the actual production can vary based on various factors such as weather, pests, diseases, and other mailto:majdahmzain.dpk@uim-makassar.ac.id mailto:heldaibrahim.dty@uim-makassar.ac.id mailto:musdalipa.dpk@uim-makassar.ac.id agbioforum, 24(3), 2022 | 65 zain, ibrahim and musdalipa. — the use of digital technologies in agricultural cultivation… socio-economic factors. moreover, indonesia's rice production is concentrated in the western and central parts of the country, particularly on the islands of java, bali, and sumatra. among these regions, java is the largest riceproducing island, accounting for most of indonesia's rice production. other regions producing significant rice amounts include sulawesi, kalimantan, and papua (susanto et al., 2021). however, the program's success in providing food for the growing population came at a high cost to the environment, including soil erosion, greenhouse gas emissions, deforestation, and water contamination, among other issues (pramananda et al., 2022). as a result, there has been a growing interest in sustainable agricultural technologies to mitigate these impacts and increase rice production in recent years. one such technology is the system of rice intensification (sri), which involves using fewer seeds, transplanting young seedlings, and applying organic fertilizers and weed control methods (meesala & rasala, 2022). sri has shown promising results in increasing rice yield and reducing water usage and greenhouse gas emissions in indonesia (arsil et al., 2022). likewise, organic farming is an agricultural approach that prioritizes environmental sustainability, animal welfare, and human health (gong et al., 2022). it is used by farmers to intensify rice production in indonesia (grimm et al., 2023). 2. aims and objectives hence, to address this literature gap, the current study aims; • to examine the influence of sustainable agricultural technologies, including the system of rice intensification, organic farming, and integrated pest management, in enhancing rice productivity. • to investigate the moderating role of farmers' education to augment the influence of sustainable agricultural technologies (i.e., the system of rice intensification, organic farming, and integrated pest management) on enhanced rice productivity. 3. research significance another sustainable technology is integrated pest management (ipm), which involves using natural predators and non-chemical methods to control pests and diseases (falkenberg et al., 2022). ipm has been successful in reducing the use of pesticides and increasing rice yield in indonesia (rahmawasiah et al., 2022). overall, the use of sustainable agricultural technologies in rice production in indonesia has the potential to increase productivity, reduce negative environmental impacts, and improve the livelihoods of farmers (santoso et al., 2023). however, there is a need for more research, policy support, and technical assistance to encourage their widespread adoption (sani et al., 2022). 4. structure of review 4.1 sustainable agricultural technologies sustainable agricultural technologies refer to a wide range of tools, methods, and practices designed to promote more environmentally responsible and socially equitable agricultural production systems (krauss et al., 2022). these technologies aim to improve agricultural productivity while reducing negative impacts on the environment and improving the livelihoods of farmers and communities (yazdanpanah et al., 2021). some examples of sustainable agricultural technologies include precision agriculture, agroforestry, conservation agriculture, the system of rice intensification, organic farming, integrated pest management, and water management technologies. these are just a few examples of sustainable agricultural technologies that can help to promote more sustainable and socially responsible agricultural practices (bhat et al., 2022). by adopting these technologies, farmers can improve their productivity while also protecting the environment and improving the livelihoods of their communities (arsil et al., 2022). the technologies utilized in this research for sustainable agriculture development in java, bali, and sumatra province, indonesia, are those that have been introduced and applied at the farmer level. hence, the three technologies implemented in the study are the system of rice intensification (sri), organic farming, and integrated pest control management. besides, the criteria for sustainable agriculture development include environmental feasibility, productivity, economic feasibility, cultural acceptability, and technical feasibility for farmers. 4.2 system of rice intensification and enhance rice productivity sri is a rice cultivation technique that enhances rice productivity by changing the management of plants, soil, water, and nutrients. it has been proven to increase rice productivity by 50% and, in some places, more than 100%. sri has been implemented in several districts in java, sumatra, bali, west nusa tenggara, and east nusa tenggara, mostly promoted by non-governmental organizations (ngos). in bali, the sri method has been used with organic fertilizer and more efficient irrigation water, making better soil, plants, and water management based on environmentally friendly rules (arsil et al., 2022). the increase in the prices of chemical fertilizers and pesticides and the deterioration of the resource environment due to their continuous use have encouraged farmers in several places to practice the sri method (bhat et al., 2022). sri technology utilizes machines that are manipulable to grow potential rice crops by creating suitable growth conditions. the concept of synergy is applied in sri, where all the technology components work together to yield results greater than the sum of their individual parts. studies have identified several crucial components of sri, including early transplantation of young seedlings, planting one stem per planting hole, wide planting distances, maintaining moist soil conditions without flooding, and using organic fertilizers and local microorganisms (meesala & rasala, 2022). moreover, sri agbioforum, 24(3), 2022 | 66 zain, ibrahim and musdalipa. — the use of digital technologies in agricultural cultivation… is an alternative rice farming system that focuses on maximizing the productivity of rice fields through the optimal management of plants, soil, water, and nutrients. sri differs from conventional rice farming in several ways, including changes in transplanting, irrigation, and nutrient management practices. sri promotes the use of younger seedlings with only a few leaves, which are transplanted one at a time with wider spacing between them (mboyerwa et al., 2022). during planting, the land is kept wet but not flooded, which saves water by 46%. these seedlings are adaptable and less stressed because their roots are short, and planting does not need to be too deep. farmers prepare for the production of high-quality young seeds from the outset, aiming to quickly grow large seeds in a 50g/m2 nursery without nutrient competition, which are ready for planting at the age of 7-10 days (shivay et al., 2022). transplanting these young seedlings reduces shocks and enhances their ability to produce stems and roots during vegetative growth. this allows each plant to have more space and resources, leading to the development of a stronger and more productive root system. sri also emphasizes intermittent flooding rather than continuous flooding, which can help increase soil aeration and reduce water consumption. research has shown that sri can lead to significant increases in rice productivity. furthermore, sri can also contribute to improved soil health, reduced greenhouse gas emissions, and increased resilience to climate change (shivay et al., 2022). by promoting more sustainable and environmentally friendly farming practices, sri can help to support the long-term viability of rice farming and enhance food security for communities that depend on rice as a staple crop. in summary, the sri is an alternative rice farming system that focuses on maximizing productivity through changes in planting, irrigation, and nutrient management practices. sri has been shown to lead to significant increases in rice yields, as well as reduced environmental impact and improved resilience to climate change. hence, it is posited that; h1: there is a positive influence of the system of rice intensification on enhanced rice productivity. 4.3 organic farming and enhance rice productivity organic farming is based on the principles of agroecology, which emphasizes the interdependence of ecological, social, and economic systems in farming (aulakh et al., 2022). it aims to produce food in an environmentally friendly, socially responsible, and economically viable way. one of the primary goals of organic farming is to improve soil fertility and biodiversity (manta et al., 2023). organic farmers use various practices, including crop rotation, cover cropping, and intercropping, to improve soil health and structure. they also use natural fertilizers, such as compost and animal manure, to build soil fertility and promote the growth of healthy crops (sani et al., 2022). in addition, organic farmers use natural pest control methods, such as beneficial insects, to manage pests and diseases. it is an agricultural approach that prioritizes environmental sustainability, animal welfare, and human health (gong et al., 2022). additionally, organic farming has been found to have a positive relationship with rice productivity, particularly in the long term (matsuoka et al., 2022). organic farming practices, such as using organic fertilizers, cover cropping, crop rotation, and natural pest control methods, can improve soil fertility and enhance the overall health of the farming system (handayani et al., 2022). research has shown that organic farming can increase rice yields by up to 50% compared to conventional farming methods in the long term (tien et al., 2022). this is because organic farming practices enhance soil fertility by increasing soil organic matter, nutrient availability, and soil structure. these factors can improve the growth and development of rice plants, leading to higher yields. in addition, organic farming can also improve the resilience of rice farming systems to environmental stresses, such as drought and flooding (vergura et al., 2020). organic farming practices can improve water retention in the soil, reduce erosion, and promote the growth of beneficial microorganisms, which can help rice plants to withstand environmental stresses. overall, organic farming can enhance rice productivity by improving soil fertility, increasing resilience to environmental stresses, and improving the quality of rice crops (grimm et al., 2023). this can lead to higher yields and improved food security for farmers and consumers alike. hence, it is posited that; h2: there is a positive influence of organic farming on enhanced rice productivity. 4.4 integrated pest management (ipm) and enhance rice productivity ipm is an approach to pest management that emphasizes using a range of pest control methods to manage pests in an environmentally and economically sustainable way. the goal of ipm is to minimize synthetic pesticides by using a combination of cultural, biological, and chemical control methods (falkenberg et al., 2022). ipm is based on a thorough understanding of the pest and its life cycle, as well as the ecology of the farming system. this understanding allows farmers to choose the most appropriate pest management strategies based on the specific conditions of their farming system (desneux et al., 2022). besides, biological control methods involve the use of natural enemies, such as predators and parasites, to control pest populations. these can include releasing beneficial insects, such as ladybugs or lacewings, into the farming system to feed on pests (zhang et al., 2022). at the same time, ipm is a flexible approach to pest management that can be adapted to different farming systems and pest pressures. it has been shown to be effective in reducing pest populations and increasing crop yields while minimizing the negative impact on the environment and human health (rahmawasiah et al., 2022). ipm can be an effective strategy for managing pests in rice agbioforum, 24(3), 2022 | 67 zain, ibrahim and musdalipa. — the use of digital technologies in agricultural cultivation… production, leading to improved productivity and reduced environmental impact. rice is a staple food for millions of people around the world, and pests such as stem borers, leaf folders, and brown planthoppers can cause significant yield losses if left unmanaged (balié et al., 2021). ipm strategies can help to reduce pest populations and prevent the spread of pests while minimizing the use of synthetic pesticides. ipm for rice production typically involves a combination of cultural, biological, and chemical control methods (bažok, 2022). research has shown that ipm strategies can significantly improve rice yields while reducing the use of synthetic pesticides. for example, in one study conducted in indonesia, ipm strategies for controlling stem borers and leaf folders resulted in a 1040% increase in rice yields compared to conventional pest management practices (hajjar et al., 2023). in summary, ipm can be an effective strategy for managing pests in rice production, leading to improved productivity and reduced environmental impact. by using a range of control methods and prioritizing the use of non-chemical approaches, ipm can help to promote sustainable and environmentally responsible rice production. hence, it is posited that; h3: there is a positive influence of integrated pest management on enhanced rice productivity. 4.5 farmers education as a moderator sustainable agricultural technologies, such as precision agriculture, integrated pest management, the system of rice intensification, and organic farming, have the potential to significantly improve rice productivity (hajjar et al., 2023). however, the impact of these technologies on rice productivity may be influenced by a variety of factors, including farmers' education level. thus, farmers' education can serve as a moderator between the association of sustainable agricultural technologies and rice productivity, influencing the adoption and effectiveness of these technologies. farmers' education can influence the adoption of sustainable agricultural technologies by improving farmers' knowledge and understanding of these technologies (khan et al., 2022). farmers who are more educated may be more likely to adopt sustainable agricultural technologies as they have a better understanding of the potential benefits of these technologies. additionally, education can help farmers to understand the importance of sustainable agricultural practices and the potential long-term benefits of adopting these practices (luo et al., 2022). this can help to overcome barriers to adoption, such as lack of knowledge or awareness. in addition to influencing adoption, farmers' education can also influence the effectiveness of sustainable agricultural technologies. farmers who are more educated may be better equipped to implement these technologies effectively by understanding how to use tools such as sensors or mapping systems, for example (hanson et al., 2022). additionally, education can help farmers to better understand the complex interactions between different aspects of agricultural production, such as soil health, nutrient management, and pest control (diana et al., 2022). this can help to optimize the use of sustainable agricultural technologies and improve their impact on rice productivity. hence, farmers' education can serve as an important moderator between the association of sustainable agricultural technologies and rice productivity. education can influence the adoption and effectiveness of sustainable agricultural technologies by improving farmers' knowledge and understanding of these technologies. however, the relationship between farmers' education and sustainable agricultural technologies is complex and influenced by a variety of other factors. hence, it is posited that; h4: farmers' education moderates the association of sustainable agricultural technologies with enhanced rice productivity such that the relationship is stronger in the case of higher values of farmers’ education. 4.6 theoretical framework the purposive literature review, logical arguments, and sustainable technology intrusion in agriculture provide the base for the current study’s theoretical framework, as presented in figure 1. figure 1: theoretical framework of the study farmers’ education the system of rice intensification integrated pest management h4 h6 h 1 organic farming h5 h2 enhanced rice productivity h3 agbioforum, 24(3), 2022 | 68 zain, ibrahim and musdalipa. — the use of digital technologies in agricultural cultivation… 5. research method when conducting a survey using convenience sampling to collect data from farmers in south sulawesi provinces of indonesia for measuring the association of sustainable agricultural technologies with rice productivity, we took the following several steps: clearly defined the research question and objectives of the survey, such as "what is the association between the use of sustainable agricultural technologies and rice productivity among farmers in indonesia?" the target population of the survey includes rice farmers in indonesia. for extracting the sample, we obtained a list of potential participants from local agricultural extension services, farmer groups or cooperatives. after defining the population and deciding on sample size and technique, we developed a survey instrument that includes questions related to the use of sustainable agricultural technologies, rice productivity, and demographic information of the farmers. we also ensured that the questions were clear and relevant to the research objectives. we approached the rice farmers who were requested to participate in the survey. they were also informed about the anonymity of their response. we also explained the purpose of the survey and the importance of their participation. those who showed a willingness to participate in the survey were handed over the study questionnaire. the big question comprised three parts, including the demographic characteristics of the farmers. the second part consisted of documentation for taking formal consent from the projected participants. finally, the third part included the study items consisting of six items each for the system of rice intensification, organic farming, and farmers' education. besides, five items each were adapted from the existing studies for measuring farmers' education and integrated pest management. this whole data collection procedure in early of 2022, we were able to collect 567 responses after receiving all the questionnaires, a-pretest the survey instrument with a small group of farmers to ensure that the questions are understandable and relevant to the target population. we analyze the data using appropriate statistical methods to determine the association between the use of sustainable agricultural technologies and rice productivity. 5.1 pre-test when conducting a survey using convenience sampling, it is important to acknowledge the limitations of this sampling method, such as potential bias in the sample selection and the inability to generalize the findings to the broader population in the sample selection and the inability to generalize the findings to the broader population (gupta et al., 2021). convenience sampling is a non-probability sampling technique that can lead to potential bias in sample selection (etikan et al., 2016). here are some ways in which we adapted to avoid bias in the sample selection during convenience sampling: first, we defined the target population clearly and precisely before selecting a convenience sample. this helped us identify the characteristics of the population and ensure that the sample was representative. we also approached the potential participants randomly rather than relying on self-selection. finally, we validated the sample by comparing the characteristics of the sample to those of the target population. there were no significant differences. hence, the sample is regarded as a true representative. 5.2 demographic characteristics of farmers the participants' demographic characteristics demonstrate that the respondents (81.2%) were male and 18.8%) were female, indicating a large difference in both genders' distribution. the mean age of the participants was 41 years, with a standard deviation of 12. the participants' education level distribution indicated that the majority of the respondents were senior high school or below (83.2%), and undergraduates (16.8%). 6. results in the following study stage, the impact of participants' demographic characteristics on the dependent variables was evaluated. it was found that the participants' age had a significant effect on their perceptions of enhanced rice productivity. therefore, it was controlled before conducting the regression analysis. to establish the reliability and validity of the study measures, the researchers used "cronbach's α (ca)" and "composite reliability (cr)" values (henseler et al., 2015; noor et al., 2022). the findings indicated that all cr and ca values were within the recommended range of above 0.70, indicating the measures' well-established validity and reliability (see table 1). additionally, the "average variance extracted (ave)" values were above the suggested threshold of 0.50 based on the study variables' factor loadings above 0.70 (see figure 2). therefore, the results supported the "convergent validity" of the study constructs (hair et al., 2017). to ensure the discriminant validity of the constructs, researchers have suggested evaluating the heterotrait-monotrait (htmt) ratio (henseler et al., 2015). as per the results presented in table 2, the htmt ratio values were below 0.5.980, indicating no problem of multicollinearity among the study variables (hair et al., 2017). 6.1 hypothesis testing to test the hypothesis, the authors calculated the "coefficient of determination (r2)" for the influence of sustainable agricultural technologies, including the system of rice intensification, organic farming, and integrated pest management, on enhanced rice productivity. the r2 value for enhanced rice productivity was 0.759, indicating a variance of 75.9% in rice productivity based on sustainable agricultural technologies and their interaction with farmers’ education. 6.2 direct hypotheses results show that sustainable agricultural technologies, including the system of rice intensification (ß = 0.360***, t = 6.455), organic farming (ß = 0.405***, t =7.123), and integrated pest management (ß = 4.005**, t =), on enhanced rice productivity. hence, proving all direct hypotheses, i.e., h1, h2, and h3. agbioforum, 24(3), 2022 | 69 zain, ibrahim and musdalipa. — the use of digital technologies in agricultural cultivation… 6.3 moderating hypotheses to assess how farmers' education affects the relationship between sustainable agricultural technologies and improved rice productivity, interaction terms (fe*sri, fe*of, and fe*ipm) were created using a product indicator method in smartpls v. 4.0. the findings indicated that farmers' education plays a moderating role, and the results also revealed that fe had a significant interaction with sri (ß = 0.218**, t =3.768), of (ß = 0.204**, t =3.689), and ipm (ß = 0.126**, t =3.026), which increased the erp. the r2 value for the main influence of all independent constructs on rice productivity was 0.602. however, the inclusion of the interaction terms led to an increase in the r2 value to 0.759, demonstrating a 15.7% improvement in the explanatory power of enhanced rice productivity. table 1: factor loadings, reliability, and validity constructs factor loadings ave cr ca 1 2 3 4 5 system of rice intensification 0.590 0.896 0.780 sri1 0.841 sri2 0.739 sri3 0.744 sri4 0.734 sri5 0.768 sri6 0.777 organic farming of1 0.751 0.555 0.882 0.764 of2 0.739 of3 0.717 of4 0.796 of5 0.748 of6 0.714 integrated pest management 0.555 0.862 0.745 ipm1 0.784 ipm2 0.737 ipm3 0.715 ipm4 0.740 ipm5 0.747 enhanced rice productivity 0.584 0.894 0.782 erp1 0.798 erp2 0.772 erp3 0.732 erp4 0.715 erp5 0.793 erp6 0.770 farmers education 0.553 0.861 0.771 fe1 0.796 fe2 0.795 fe3 0.703 fe4 0.708 fe5 0.711 “note: cr, composite reliability; ave, average variance extracted; ca= cronbach’s α.” table 2: heterotrait-monotrait ratio constructs mean std 1 2 3 4 5 system of rice intensification 3.88 1.11 0.768 organic farming 3.96 1.05 0.406 0.744 integrated pest management 4.04 0.98 0.540 0.497 0.744 enhanced rice productivity 4.18 0.92 0.409 0.454 0.533 0.764 farmers education 4.10 0.95 0.611 0.600 0.452 0.510 0.743 “note: the square roots of aves of the constructs are shown in bold in diagonal.” figure 3 a, b, and c demonstrates that the slope of the line representing the correlation between sustainable agricultural technologies and increased rice productivity was more pronounced for farmers with higher levels of education as opposed to those with lower levels of education. this further reveals that when farmers are highly qualified and well trained, they are in a better position to apply sustainable agricultural technologies to grow rice and other crops resulting in high productivity. these results also support this research's hypotheses 4, 5, and 6. 7. findings 7.1 findings of the study the association of sustainable agricultural technologies with rice productivity is an important topic that has gained increasing attention in recent years. sustainable agricultural technologies such as the system of rice intensification (sri), organic farming, and integrated pest management (ipm) have been shown to improve rice productivity while also reducing environmental impacts and promoting social and economic sustainability. sri is a set of agricultural practices that focus on improving the growth and productivity of rice plants (arsil et al., 2022). in the current study, sri has been shown to significantly increase rice productivity while reducing water consumption and greenhouse gas emissions. this further reflects that sri can improve soil health and biodiversity, leading to more sustainable and resilient agricultural agbioforum, 24(3), 2022 | 70 zain, ibrahim and musdalipa. — the use of digital technologies in agricultural cultivation… systems (meesala & rasala, 2022). figure 3: a, b, and c: interaction plot for moderating effects of technical support. table 3: hypothesis testing results hypothesized relationships std. beta t-value p-value supported h1 sri→erp 0.360 6.455 0.000 yes h2 of→erp 0.405 7.123 0.000 yes h3 ipm→erp 0.233 4.005 0.000 yes h4 sri*fe→erp 0.218 3.768 0.003 yes h5 of*fe→erp 0.204 3.679 0.009 yes h6 ipm*fe→erp 0.126 3.020 0.006 yes where: sri= system of rice intensification; of= organic farming; ipm=integrated pest management; erp=enhanced rice productivity; fe=farmers education organic farming is another sustainable agricultural technology associated with increased rice productivity. organic farming practices focus on using natural resources and minimizing the use of synthetic inputs such as fertilizers and pesticides (krauss et al., 2022). in the current study, organic farming has been shown to improve soil health, biodiversity, and water retention, leading to increased rice productivity. ipm is a third sustainable agricultural technology that has been associated with increased rice productivity. ipm is an approach to pest management that focuses on minimizing the use of synthetic pesticides and instead uses a combination of cultural, biological, and chemical control methods to manage pests (matsuoka et al., 2022). ipm has been shown to significantly reduce the use of pesticides while maintaining or even increasing rice productivity. ipm also promotes environmental sustainability by reducing pesticide residues and improving the health of the ecosystem (tien et al., 2022). simultaneously results also revealed the moderating role agbioforum, 24(3), 2022 | 71 zain, ibrahim and musdalipa. — the use of digital technologies in agricultural cultivation… of farmers' education between the association of sustainable agricultural technologies and enhanced rice productivity. results specifically revealed the higher values of the interactive effect of sri and farmers' education on enhanced rice productivity, followed by the ibm and organic fall forming. these results depict that the farmers need to be knowledgeable and educated to successfully implement sustainable agricultural technologies to extract the maximum benefits and enhance the country's socioeconomic development. 8. conclusion in conclusion, sustainable agricultural technologies such as sri, organic farming, and ipm have been associated with increased rice productivity while also promoting environmental, social, and economic sustainability. these technologies can play an important role in ensuring food security and promoting sustainable agriculture in riceproducing regions. however, the adoption and implementation of these technologies require adequate farmer education to reach a large number of farmers. therefore, it is important for policymakers, researchers, and other stakeholders to prioritize the development and dissemination of these technologies to promote sustainable agriculture and improve rice productivity. 9. contributions and implications 9.1 theoretical implications the association of sustainable agricultural technologies with rice productivity has several theoretical implications that can inform agricultural research and practice. some of these implications include the fact that sustainable agricultural technologies are complex and require a system thinking approach that considers the interactions and feedback among different components of the agricultural system. adopting and implementing sustainable agricultural technologies require a holistic understanding of the agricultural system, including the soil, water, crops, pests, and diseases. this requires interdisciplinary research that integrates knowledge from different fields, such as agronomy, ecology, and social sciences. moreover, sustainable agricultural technologies are not only about improving crop productivity but also about ensuring that agriculture is socially, economically, and environmentally sustainable (matsuoka et al., 2022). the adoption and implementation of sustainable agricultural technologies require a socio-ecological approach that considers agriculture's social, economic, and environmental dimensions. this requires research that considers the socio-economic context of the farmers, including their access to resources such as land, water, and capital, and the impact of agricultural practices on the environment and society (krauss et al., 2022). likewise, agricultural technologies are constantly evolving, and their effectiveness and sustainability depend on the ability of farmers to innovate and adapt to changing conditions. additionally, the adoption and implementation of sustainable agricultural technologies require a dynamic and adaptive approach that takes into account the changing needs and conditions of the farmers. this requires research that promotes innovation and adaptation, including the development of new technologies, the improvement of existing ones, and the adoption of best practices. in conclusion, the association of sustainable agricultural technologies with rice productivity has several theoretical implications that can inform agricultural research and practice. these include the importance of systems thinking, the need for a socioecological approach, the importance of innovation and adaptation, the need for a participatory approach, and the importance of scaling up. agricultural research and practice should prioritize these implications to promote sustainable agriculture and improve rice productivity. 9.2 practical implications the association of sustainable agricultural technologies with rice productivity has several practical implications that can inform agricultural development initiatives. some of these implications include the need for education and training programs. as discussed earlier, farmers' education and training are critical for effectively adopting and implementing sustainable agricultural technologies. agricultural development initiatives should, therefore, prioritize the design and implementation of education and training programs tailored to the farmers' needs and context. these programs should provide farmers with the necessary knowledge and skills to effectively use sustainable agricultural technologies to improve rice productivity. sustainable agricultural technologies are complex and require collaboration among different stakeholders, including farmers, researchers, and policymakers. agricultural development initiatives should, therefore, promote communication and collaboration among these stakeholders to facilitate knowledge exchange, adoption of best practices, and innovation. this can be achieved through platforms such as farmer field schools, extension services, and research networks. at the same time, adopting and implementing sustainable agricultural technologies require an enabling policy environment that supports innovation, encourages investment and promotes the dissemination of knowledge and best practices. agricultural development initiatives should, therefore, prioritize advocacy and engagement with policymakers to create a supportive policy environment that promotes sustainable agriculture. likewise, sustainable agricultural technologies are context-specific, and what works in one context may not work in another. agricultural development initiatives should, therefore, prioritize context-specific approaches that take into account the local environment, culture, and socio-economic conditions of the farmers. this can help to ensure that sustainable agricultural technologies are appropriate, effective, and sustainable. sustainable agricultural technologies are constantly evolving, and agricultural development initiatives should prioritize research and innovation to identify new technologies, improve existing ones, and promote continuous learning. agbioforum, 24(3), 2022 | 72 zain, ibrahim and musdalipa. — the use of digital technologies in agricultural cultivation… this can help to ensure that sustainable agricultural technologies remain relevant, effective, and sustainable in the face of emerging challenges such as climate change, pest and disease outbreaks, and changing market conditions. hence, it can be stated that the association of sustainable agricultural technologies with rice productivity has several practical implications that can inform agricultural development initiatives. these include the need for education and training programs, the importance of communication and collaboration, the need for an enabling policy environment, the importance of contextspecific approaches, and the need for research and innovation. agricultural development initiatives should prioritize these implications to promote sustainable agriculture and improve rice productivity. 10. future research work to fully understand the relationship between farmers' education and sustainable agricultural technologies, it is important to consider the broader context in which these technologies are being adopted and implemented. in this regard, government policies, market incentives, and access to resources such as credit or land can all influence the adoption and effectiveness of sustainable agricultural technologies and can be empirically tested concerning rice production. therefore, it is important to take a holistic approach to understand the factors that influence the adoption and effectiveness of these technologies. additionally, the current study investigates the influence of three sustainable agricultural technologies to investigate rice productivity. in contrast, studies can also consider other constructs, including precision agriculture, as predictors of rice productivity. 11. limitations despite several procedural and theoretical strengths, the current study also has some limitations. for instance, the relationship between farmers' education and sustainable agricultural technologies may be complex and influenced by factors other than the interactive effect. likewise, access to information and training programs may be limited in some areas, which can limit the impact of education on the adoption and effectiveness of sustainable agricultural technologies. additionally, cultural and social factors may also shape farmers' attitudes and beliefs about sustainable agricultural practices. for example, farmers may be more likely to adopt sustainable agricultural practices if they are perceived as socially desirable or if they align with traditional farming practices. references arsil, p., tey, y. s., brindal, m., & sumarni, e. 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(2022). integrated pest management programme for cereal blast fungus magnaporthe oryzae. journal of integrative agriculture, 21(12), 3420-3433. doi: https://doi.org/10.1016/j.jia.2022.08.056 https://doi.org/https:/doi.org/10.1108/apjba-11-2021-0569 https://doi.org/https:/doi.org/10.1108/apjba-11-2021-0569 https://doi.org/10.18196/agraris.v8i2.12480 https://doi.org/10.3390/en14061570 https://doi.org/10.3390/biology11010041 https://doi.org/10.3390/su15021114 https://doi.org/10.1021/acsagscitech.2c00030 http://eprints.uwp.ac.id/id/eprint/3345 https://doi.org/https:/doi.org/10.7433/s111.2020.08 https://doi.org/https:/doi.org/10.7433/s111.2020.08 https://doi.org/https:/doi.org/10.1080/09640568.2021.1917348 https://doi.org/https:/doi.org/10.1080/09640568.2021.1917348 https://doi.org/10.1016/j.jia.2022.08.056 agbioforum, 24(1): 144-152. ©2022 agbioforum the effect of adoption of technology, technology diffusion, human capital, formation of capital and labor force in the production of agriculture products in iraq zainab abed almoussawi college of islamic science/ ahl al bayt university/ kerbala / iraq email: zainabalmoussawiii@gmail.com hussam mohammed wafqan accounting department, al-mustaqbal university college, babylon, iraq email: hussam.mohammed@mustaqbal-college.edu.iq sabbah raheem mahdi mazaya university college/ iraq email: sabbah.raheem1958@mpu.edu.iq ammar dhahim college of education/ al-farahidi university /baghdad/ iraq omayma nawfal ahmed department of dentistry, alnoor university college, bartella, iraq email: omayma.nawfal@alnoor.edu.iq maki mahdi abdulhasan al-nisour university college/baghdad/iraq email: dr.makimahdi@yahoo.com khudr bary freeh accounting and economics/ al-esraa university college, baghdad, iraq email: khuder@esraa.edu.iq any nation's economic growth directly depends on expanding its agricultural industry. compared to the agricultural productivity of the united states and canada, iraq's agricultural sector is dated. this study investigates the impact of technology adoption, technological diffusion, human capital, capital formation, and labor force on farm product output in iraq. unlike previous studies on the agriculture industry, which relied primarily on secondary data from various reports and surveys, this study is founded on primary data. the adoption of technology, the diffusion of technology, and human capital can increase agricultural production in iraq, according to this study. substantial study results contributed to a powerful framework in the body of knowledge. this study's innovative theoretical and practical ramifications will increase the literature and the practices of agricultural practitioners in pakistan. the study aims to boost agricultural production in iraq by stressing technology. key words: adoption of technology, technology diffusion, human capital, formation of capital, agriculture products 1. introduction agriculture has a crucial role in the economy of any nation (usman et al., 2021). agriculture contributes significantly to the gross domestic products exported to overseas markets to generate foreign revenue for any nation (uduji et al., 2021). innovation in the agriculture sector promotes the agriculture industry's production expansion and sector development (lavoie et al., 2021). numerous causes contribute to the expansion of the agriculture industry, for which the participation of supporting industries is crucial (usman et al., 2021). iraq's economy is failing because of warzones and political upheaval (lavoie et al., 2021). according to contemporary working standards, the destruction of the agriculture industry is not advanced. lazaroiu et al. (2019) report that iraqi farmers are not supplied with the facilities necessary for their innovative product development in the agricultural sector. in today's intense market competition, innovation plays a vital role in enhancing the performance of all industries. because improved machinery enables the agriculture sector to operate novelly, technology has altered the agricultural industry's traditional methods of operation (xu et al., 2021). as a result of its facilitation of the us and canadian agricultural sectors, technology is deemed to play a crucial role (jung et al., 2021). farmers that work ingeniously to promote the agriculture industry have the greatest impact on the economy's expansion through agricultural products (kant et al., 2022). unquestionably, technological dissemination is essential for developing the agricultural sector in every nation, as the adoption of new techniques occurs in stages (stephens et al., 2018). human capital and farmers in the agriculture industry must have a constructive attitude toward the technological challenges that are advancing the sector (zhou et al., 2022). for agriculture growth, the performance of formers that utilize technology in novel ways is superior to that of traditional formers that do not utilize technology (sapbamrer et al., 2022). su et al. (2022) have found that the performance of the agriculture sector is directly proportional to a nation's economic growth. olney et al. (2015) suggested that the government should provide the formers with modern technologies to enhance their job and performance in the farm industry. chinese farmers use technology to increase agricultural output (molina-maturano et al., 2020). agriculture's development has been facilitated by technology's efficacy, enabling farmers to produce more efficiently (uduji et al., 2021). indeed, chrismanto et al. (2019) also stressed the importance of educating formers on the right use of technology for enhanced learning. xu et mailto:zainabalmoussawiii@gmail.com mailto:hussam.mohammed@mustaqbal-college.edu.iq mailto:sabbah.raheem1958@mpu.edu.iq mailto:omayma.nawfal@alnoor.edu.iq mailto:dr.makimahdi@yahoo.com mailto:khuder@esraa.edu.iq agbioforum, 24(1), 2022 | 145 almoussawi, wafqan, mahdi, dhahim, ahmed, abdulhasan and freeh. — the effect of adoption of technology, technology diffusion …. al. (2021) noted that formers with innovation resistance are less productive in the agriculture sector's performance. bruun et al. (2017) found that the agricultural workforce should be educated and have a good attitude toward using technology. existing research has revealed diverse viewpoints regarding the performance of the agriculture industry. however, the literature has disregarded the role of technology adoption, technological diffusion, human capital, capital development, and labor force in agriculture product production (aacharya et al., 2020; kant et al., 2022; whitcraft et al., 2019). this study investigates the impact of technology adoption, technological diffusion, human capital, capital formation, and labor force on farm product output in iraq. this study used a novel methodology, as most previous research on agriculture relied on secondary data from various reports and surveys. on the other hand, this research is based on the primary data collected by farmers in baghdad, iraq, to assess the agriculture sector's effectiveness with technology from the perspective of formers. this study's innovative theoretical and practical ramifications will increase the literature and the practices of agricultural practitioners in pakistan. the study aims to boost agricultural production in iraq by stressing technology. 2. literature review human capital is essential for all industries (kim et al., 2018). the efficiency of the worker force on any given farm can increase the output of the agriculture industry. farmers in the united states are well-trained to work efficiently, which is essential for their superior performance (mehmood et al., 2022). china's agricultural output depends on the quality of its labor force, as output increases when laborers work from the heart (hutahayan, 2020). the resources are crucial for the agriculture sector's success since decisions are made based on resources and financial capital (rego et al., 2010). the capital is required for workers to achieve better health and living conditions. the canadian government subsidizes farmers to relieve them of the burden of capital for higher agricultural production performance (kaye et al., 2017). in fact, with foreign direct investment in the agriculture sector, agricultural production increases, which is essential for exporting exported goods (zia et al., 2021). similarly, investment in the agriculture sector boosts the production of agricultural goods, hence increasing agrotourism in indonesia (olney et al., 2015). alternatively, the thai government has invested in the agricultural industry to encourage agro-tourism in the country (stephens et al., 2018). the capital provided by the investors is essential for the farm labor force. the high wages of the labor force motivate them to perform well in agricultural output, which influences the country's economic performance (uduji et al., 2021). chrismanto et al. (2019) noted that the agriculture sector has a significant impact on economic sustainability, but that for agriculture sector production, investment in the labor force is required. hypothesis 1. the formation of capital and labor force has an impact on agriculture production. human labor and workforce are essential for the economic success of any nation (kim et al., 2018). agriculture production is enhanced in nations that educate their workforce to use digital equipment in the agricultural industry (zia et al., 2021). indeed, labor performance is vital for the farm industry, but compensation should be commensurate with market norms (kaye et al., 2017). the human mind is essential for agricultural production, but the lack of emphasis on worker development has made it difficult for the iraqi agricultural industry to increase economic growth (hutahayan, 2020). technology development is suitable for students and positively affects their personalities. china's workforce is exposed to all new technologies, and their attitudes toward innovation adoption are cultivated for enhanced learning and performance (rego et al., 2010). the effective application of technology and the notion of technology diffusion are essential to developing contemporary technology for the production and expansion of the agriculture industry (mehmood et al., 2022). stephens et al. (2018) highlighted that effective human capital is necessary to apply agriculture technology in the agriculture industry appropriately. to lessen the perception of innovation dissemination, it is necessary to respect the workforce and improve their grasp of the technology. hypothesis 2. human capital has an impact on agriculture production. today, technology has altered the old methods of conducting business in any corporation (kant et al., 2022). every nation's technological growth has a substantial impact on several industries. agriculture sector technology is deemed essential since it enables the inventive growth of the economy (jung et al., 2021). the performance of employees in the agriculture sector can be improved if the government provides them with the required facilities (stephens et al., 2018). in the current competitive market, the efficiency of the agricultural sector's work has been improved by using sophisticated machinery, which is essential for capturing a large market share (olney et al., 2015). there is no doubt that advanced agricultural technology is available in the modern world, but it is scarce in developing nations, posing a hurdle to their technical development (molina-maturano et al., 2020; stephens et al., 2018; uduji et al., 2021). less agriculture-related technology is available to develop nations like iraq to boost agricultural output (zilli et al., 2020). similarly, these developing countries are not the epicenter of agricultural tourism, which poses a problem for their governments (aacharya et al., 2020). stephens et al. (2018) argued that technological innovation is essential for the production and performance of the agriculture sector in any nation. kant et al. (2022) noted that the proliferation of technology had altered traditional work habits, resulting in new methods for the promotion and production of agriculture. due to the widespread application of agbioforum, 24(1), 2022 | 146 almoussawi, wafqan, mahdi, dhahim, ahmed, abdulhasan and freeh. — the effect of adoption of technology, technology diffusion …. technology in the agriculture sector in russia, the agricultural industry contributes significantly to the country's economic viability (jung et al., 2021). hypothesis 3. the adoption of technology has an impact on agriculture production. hypothesis 4. the adoption of technology has an impact on technology diffusion. modern agriculture production has access to technology, but technology adoption is not widespread (jung et al., 2021). farmers in developing nations are not exposed to technology because they believe it is not beneficial to them (kant et al., 2022). similarly, the adoption rate of technology in agriculture is low since small farmers lack the means necessary to apply the technology for production (stephens et al., 2018). the countries that emphasize the use of technology and whose governments assist farmers in acquiring new machinery for agricultural expansion are technologically advanced and meet the technological needs of other nations (uduji et al., 2021; xu et al., 2021). conversely, technology diffusion is widely accepted in modern nations because farmers are increasingly interested in creatively using technology to create greater conveniences for the labor force (usman et al., 2021). utilizing technology in the agriculture industry necessitates skilled workers due to the high cost of the technology and the high cost of machinery damage in agricultural production. the first stage of technology dissemination, according to kuo et al. (2022), is to raise awareness about the good applications of technology. xu et al. (2021) noted that advanced nations are utilizing technology in a contemporary manner to increase agricultural output. sekaran et al. (2021) stressed that the spread of technology in the agriculture sector promotes technology usage and the sector's growth. according to jung et al. (2021), developing nations use technology for agriculture production on a lower scale. hypothesis 5. technology diffusion has an impact on agriculture production. hypothesis 6. technology diffusion mediates the relationship between the adoption of technology and agriculture production. figure 1. framework of study 3. methodology 3.1 measurements the questionnaire for this study was developed using measuring items adapted from previous research. the sample for this study was collected using a five-point likert scale questionnaire based on the items considered. aubert et al. (2012) modified the elements for technology adoption. aubert et al. (2012) modified the scale items for technological dissemination in a second step. finally, bontis et al. (2000) modified the human capital scale items. in addition, singh et al. (2013) altered the scale items for agricultural productivity. singh et al. (2013) modified the scale items to create capital and labor force. for the face validity of the surveys, these items were carefully revised and verified by research specialists. the questionnaire for this study was finalized after receiving positive replies from the experts. 3.2 data collection participants in this study were farmers from iraq. the small and medium-sized farmers in the agriculture industry were approached to collect data. it was determined whether they understood the questions. they were told of the goal of this study, which made data collection easier for the researcher. in this study, cross-sectional data are collected using a random sample technique. furthermore, because this study is based on agricultural output, farmers were the ideal participants. in contrast, the sample size of this study is 404, which is sufficient to generalize the study's conclusions. the responders were rewarded for their participation in the data collection questionnaire. adoption of technology technology diffusion human capital formation of capital and labor force agriculture production agbioforum, 24(1), 2022 | 147 almoussawi, wafqan, mahdi, dhahim, ahmed, abdulhasan and freeh. — the effect of adoption of technology, technology diffusion …. 4. results 4.1 measurement model smart pls 3.0 was utilized to analyze the collected data for this investigation. the measurement model is used to assess reliability and validity, whereas the structural model is employed to determine the influence of independent variables on dependent variables. this study determines the outcomes using cronbach's alpha, composite reliability (cr), factor loadings, and average variance extracted (ave). ave is supposed to be 0.50 while cr is 0.70. (f. hair jr et al., 2014). likewise, the optimal factor loading value is 0.60 (henseler et al., 2010). however, the ideal cronbach's alpha value for reliability is 0.70. (fornell et al., 1981). the outcomes of this measuring approach demonstrated the dependability and validity of the investigated items. figure 2 and table 1 describe the measuring model's outcomes. figure 1. measurement model table 1. measurement model results – validity and reliability constructs items loadings cronbach's alpha rho_a cr ave agriculture production ap1 0.948 0.946 0.946 0.965 0.902 ap2 0.954 ap3 0.948 adoption of technology at1 0.939 0.961 0.961 0.972 0.896 at2 0.932 at3 0.953 at4 0.962 formation of capital and labor force clf1 0.906 0.949 0.952 0.961 0.831 clf2 0.896 clf3 0.928 clf4 0.912 clf5 0.914 human capital hc1 0.874 0.876 0.913 0.911 0.721 hc2 0.874 hc3 0.865 hc4 0.779 technology diffusion td1 0.952 0.965 0.965 0.974 0.905 td2 0.961 td3 0.951 td4 0.941 agbioforum, 24(1), 2022 | 148 almoussawi, wafqan, mahdi, dhahim, ahmed, abdulhasan and freeh. — the effect of adoption of technology, technology diffusion …. in addition to determining the value of discriminant validity in this measurement model test, this study also determined the value of discriminant validity. the discriminant validity is examined to examine the distinction between scale items utilized for any study construct. checking the discriminant validity, this study utilized the heteritrait-monotrait (htmt) approach offered in the measuring model. gold et al. (2001) suggested that the discriminant validity values for the htmt approach should not exceed 0.90. the results of the htmt approach presented in table 2 indicate the discriminant validity of any study's measuring items. table 2. htmt adoption of technology agriculture production formation of capital and labor force human capital technology diffusion adoption of technology agriculture production 0.713 formation of capital and labor force 0.588 0.607 human capital 0.772 0.791 0.696 technology diffusion 0.791 0.786 0.604 0.782 4.2 structural model the findings of the structural model are used in this study to determine the findings of the hypotheses. the available results determined by structural model path coefficient and indirect effects revealed that all the study hypotheses are significant (see table 3). hypothesis 1 results revealed the impact of the formation of labor and capital is significant on agriculture production (t = 3.263) and (p = 0.001). hypothesis 2 results revealed the impact of human capital is significant on agriculture production (t = 3.857) and (p = 0). hypothesis 3 results revealed that technology adoption is significant in agriculture production (t = 11.410) and (p = 0). hypothesis 4 results revealed that the impact of technology adoption is significant on technology diffusion (t = 153.691) and (p = 0). hypothesis 5 results revealed the impact of technology diffusion is significant on agriculture production (t = 3.015) and (p = 0.003). lastly, hypothesis 6 results revealed the mediating impact of technology diffusion is significant between the adoption of technology and agriculture production (t = 3.002) and (p = 0.003). the description of these results is also presented in figure 3. figure 3. structural model table 3. direct and indirect impacts no hypotheses original sample stdev t p 1 formation of capital and labor force -> agriculture production 0.124 0.038 3.263 0.001 2 human capital -> agriculture production 0.189 0.049 3.857 0.000 3 adoption of technology -> agriculture production 0.721 0.063 11.410 0.000 4 adoption of technology -> technology diffusion 0.954 0.006 153.691 0.000 5 technology diffusion -> agriculture production 0.199 0.066 3.015 0.003 6 adoption of technology -> technology diffusion -> agriculture production 0.190 0.063 3.002 0.003 agbioforum, 24(1), 2022 | 149 almoussawi, wafqan, mahdi, dhahim, ahmed, abdulhasan and freeh. — the effect of adoption of technology, technology diffusion …. 5. discussion and conclusions this research is undertaken to increase the iraqi economy by enhancing agricultural production. the findings of this study indicate that the hypotheses of this investigation are noteworthy. the relationship between capital formation and the labor force is significant in agriculture production. these conclusions are comparable to those of past research describing the significance of the agriculture sector to economic expansion (olney et al., 2015). stephens et al. (2018) showed that the development of agriculture is essential for the economic development of every nation. molina-maturano et al. (2020) highlighted the importance of human labor skills in enhancing agricultural output. uduji et al. (2021) also stated that agricultural production is reliable, provided the government develops sustainable policies for farmers. chrismanto et al. (2019) argued that technical progress is essential for the development of the agriculture industry. the result of hypothesis one is, therefore, valid. significant ties exist between human capital and agricultural production. these conclusions are identical to those of prior research highlighting the significance of the agriculture sector to economic sustainability (aacharya et al., 2020; kant et al., 2022). xu et al. (2021) determined that developing agricultural labor skills is crucial for the economic success of any nation. zilli et al. (2020) underlined the relevance of human capital in enhancing the sustainability of agricultural output. chrismanto et al. (2019) concluded that agricultural innovation is reliable if the government works to build sustainable policies for farmers. with the importance of human capital, andrei et al. (2020) assert that industrial development is crucial for the success of the agriculture industry. therefore, the conclusion of hypothesis two is valid. furthermore, the relationship between technology adoption and agricultural production is substantial. these results are consistent with the findings of prior research explicating the significance of technology in the agricultural expansion (stephens et al., 2018). aubert et al. (2012) demonstrated that the new technology is crucial for indonesia's agricultural development and economic growth. kant et al. (2022) underlined the impact of contemporary technology in enhancing canadian agricultural production. da silveira et al. (2021) established that contemporary technology in the agriculture sector is dependable, provided the government develops sustainable policies to assist the formers with technology. according to jung et al. (2021), technological adoption is required for success in the agriculture industry. the result of the third hypothesis is therefore valid. similar to the findings of the third hypothesis, the fourth hypothesis concluded that the relationship between technology adoption and technology diffusion is substantial. these findings are comparable to those of prior studies that elucidated the significance of technology for adolescents (singh et al., 2013). kant et al. (2022) concluded that farmers must improve their proficiency with this new technology to increase productivity gains. aubert et al. (2012) asserted that the significance of current technologies in training agricultural production founders is crucial. stephens et al. (2018) conclude that modern agriculture technology is beneficial when farmers adopt an innovation adoption mindset. jung et al. (2021) stated that technology adoption and diffusion are essential for enhancing agricultural sector growth. the result of the fourth hypothesis is therefore valid. similar to the findings of the fourth hypothesis, the fifth hypothesis concluded that the association between technological spread and farm production is significant. similarly, these results are identical and consistent with prior studies that elucidated the significance of technology diffusion for farm productivity (olney et al., 2015; stephens et al., 2018). uduji et al. (2021) determined that technology diffusion is necessary for agricultural labor. moreover, xu et al. (2021) acknowledged that introducing technology to farmers is significant for expanding the agriculture industry. the result of the fifth hypothesis is therefore valid. intriguingly, the results of the sixth hypothesis indicated that the mediating relationship between the adoption of technology and agricultural production is considerable. these findings are consistent with earlier research (aubert et al., 2012; bruun et al., 2017; kant et al., 2022). stephens et al. (2018) concluded that the new technology benefits farmers when its dispersion corresponds with the farmer's mentality. in addition, jung et al. (2021) highlighted the impact of contemporary technology and technology spread in agricultural development. on the other hand, aubert et al. (2012) determined that modern technology diffusion is essential for the agriculture industry. consequently, the conclusion of the sixth hypothesis is valid. this study concludes that the adoption of technology, technological dissemination, human capital, capital formation, and labor force substantially impact the output of agricultural products in iraq. 6. implications 6.1 theoretical implications substantial study results contributed to a powerful framework in the body of knowledge. earlier studies examined the economic growth of iraq in terms of government policies and the viability of working conditions. this study has discovered the association between new variables in iraqi agricultural production. first, the significance of establishing capital and labor is emphasized in this study of agricultural production. second, this study highlights the importance of human capital's influence on agricultural productivity for iraq's sustained economic growth. in the preceding research, this relationship was not addressed directly. thirdly, this research has highlighted the significance of adopting technology to improve agricultural productivity in iraq. in addition, this study introduces the substantial impact of technological diffusion, which was overlooked in earlier studies concerning agricultural production. the mediating agbioforum, 24(1), 2022 | 150 almoussawi, wafqan, mahdi, dhahim, ahmed, abdulhasan and freeh. — the effect of adoption of technology, technology diffusion …. relationship between the adoption of technology and agricultural production is also a significant contribution to the body of knowledge made by this research. this study has included new variables into the agricultural production model for iraq's economic sustainability. 6.2 practical implications from the standpoint of practical consequences, this study is equally noteworthy, as it reveals the relationship between various essential parameters for boosting agriculture productivity in iraq. on the one hand, this study indicated that human capital plays an essential role in agricultural productivity in iraq and that the government should assist farmers with technological improvement. technology should be used to improve efficiency in machinery and the manufacturing and distribution of goods. indeed, the agriculture sector is considered the backbone of any nation's economy; therefore, the iraqi government should efficiently support agricultural sector performance. in addition, this study underlined that in large-scale forming, the workforce must be trained to utilize technology since a good attitude toward technology is essential for the technical advancement of the nation. similarly, it is the obligation of the farmers to offer improved health facilities for the laborers to ensure that this human capital functions effectively in the target market to achieve sustainable growth. the iraqi bureaucracy should follow the sustainable economic and agricultural production model of developed nations such as russia, china, canada, and the united states to grow the iraqi economy sustainably. 7. limitations prior research on the agriculture industry relied primarily on secondary data from various studies and surveys, whereas this study relies on primary data collected from iraqi farmers. intriguingly, this study determined that technology, the diffusion of technology, and human capital can increase agricultural production in iraq. this study's innovative theoretical and practical ramifications will increase the literature and the practices of agricultural practitioners in pakistan. nevertheless, this study has certain drawbacks. first, the sample for this research was taken from farmers in baghdad, iraq. hence the results cannot be generalized. second, this study has evaluated the impact of human capital on agricultural production but has not highlighted the need for worker training. therefore, the future study must establish the significance of worker training as a mediator between human capital and agricultural production. similarly, our study is confined to the role of technology adoption as a mediator; consequently, future research should examine the role of innovation resistance concerning technology adoption and agricultural production. references aacharya, r., & chhipa, h. 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(2020). the impact of climate change on brazil's agriculture. science of the total environment, 740, 139384. doi: https://doi.org/10.1016/j.scitotenv.2020.139384 https://doi.org/10.1016/j.spc.2021.11.018 https://doi.org/10.1080/14766825.2020.1826500 https://doi.org/10.1002/pa.2712 https://doi.org/10.1016/j.rse.2019.111470 https://doi.org/10.1007/s10668-021-01319-x http://www.forestchemicalsreview.com/index.php/jfcr/article/view/653 http://www.forestchemicalsreview.com/index.php/jfcr/article/view/653 https://doi.org/10.1007/s11356-021-14342-2 https://doi.org/10.1007/s11356-021-14342-2 https://doi.org/10.1016/j.scitotenv.2020.139384 agbioforum, 24(2): 162-175. ©2022 agbioforum research on the value-added path and management mechanism of the whole agricultural industry chain based on the value network lei chaofan management & science university,40100, selangor, malaysia email: leichaofan110@163.com zunirah mohd talib graduate school of management, postgraduate centre, management and science university,40100, selangor, malaysia email: zunirahmohdtalib0@163.com liang ruihua academic committee, henan university oftechnology,450001, henan, china email: liangruihua90@163.com brian sheng-xian teo graduate school of management, academic affairs department, management and science university,40100, selangor, malaysia email: briansheng10@163.com the key to fostering the growth and prosperity of china's rural industry is to realize the added value of the entire industrial chain. this article focuses primarily on enhancing the value of the entire agricultural supply chain. based on a systematic analysis of the existing value-added methods of agriculture and the theory of the entire industry chain and value network, it combines the multifunctional and multidimensional value attributes of the entire agricultural industry—the entire farming industry—under the value network. and put forward the value reconstruction network system and value-added method of "platform ecosystem + agricultural industry cluster," information resource optimization and integration, cultural value fusion, knowledge creation, and information resource sharing, value internet relationship management, information virtual value chain management, and utilization of internet technology innovation for driving value chain mechanism, etc., can promote the value-added effectively. rejuvenate and expand the entire agricultural supply chain. for operation research to help ensure the future success of agricultural value chains, practitioners must comprehend and model the value chain as a complex adaptive system. key words: value network, whole industry chain, value added, management mechanism. 1. introduction a value chain is a series of interconnected operations that increase the worth of a product. the development and transmission of plant breeding in farmer organization, productivity, and management strategies encompass the conveyance of goods, knowledge, and information to organize farmers and society according to societal demands. on a local or global scale, the characteristics of agricultural products depend totally on the cultivation of crops and commodities in response to seasonal and yearly variations. (peng et al., 2016). to optimize the economy, each response in the performance mode, referred to as "industrial value chain management," coordinates closely with the other participants to continuously incorporate and improve all links of the vast manufacturing value chain. the value chain for agricultural commodities with added value may meet the circulating subjects' needs, significantly enhance agricultural products' manufacturing and circulation, and stimulate the growth of rural economies and farmers' incomes (pratap singh et al., 2017; quijano, quijano, & diaz, 2022; wungrath, khumai, sutan, khonchob, & jongpuk, 2022). in addition, enhancing the institutional framework of the value chain for the circulation of agricultural goods helps coordinate the division of labor during the production and operation of agricultural products and accelerates the modernization of industrialization for the circulation of agricultural goods. however, the current idea of value chain management focuses primarily on industrial items. due to the differences between agricultural and industrial goods, the concept is rarely applied to agricultural products, and theory and practice have not yet effectively converged (junior et al., 2019). as the chinese government has increased its investment in rural economic development, the rural network infrastructure has been more comprehensive, the number of e-commerce platforms in rural regions has increased, and agricultural financing channels have been further streamlined. the production and distribution of agricultural products are tied to people's lives, food safety, and the harvest of hundreds of millions of farmers. china's economy has reached a critical juncture of slow growth and structural reforms beneath the new baseline economy. the government strongly promotes the internet of things concept. (zhou et al., 2020). the internet of things has matured into a holistic strategy, becoming the driving force behind innovation-driven development and the driver for new economic growth. (xiang et al., 2022; zhou et al., 2020). china's agricultural industry must immediately discard outdated, inefficient production methods in favor of a high-speed train incorporating modern technologies. agriculture contributes to the growth and development of the nation's economy. low power, high expenses, and asymmetric information plague the typical agricultural supply chain. additionally, there are additional oddities, such as dramatic changes in the value of agricultural goods and items that aren't marketable (li et al., 2020). immediate action is required to enhance the agricultural industry value chain through the transformation of the value network, to enhance the comprehensive efficiency and mailto:leichaofan110@163.com mailto:zunirahmohdtalib0@163.com mailto:liangruihua90@163.com mailto:briansheng10@163.com agbioforum, 24(2), 2022 | 163 talib, chaofan, ruihua and teo. — research on the value-added path and management mechanism of the whole agricultural… competitiveness of agriculture, and to investigate innovative methods and management mechanisms for driving agricultural value-added. in 1985, the american economist porter explained the value chain from the enterprise's perspective, saying that each enterprise's operations involve production, processing, sales, and circulation. only by effectively managing each link can a business reach its profit objective (porter et al., 1985). on this basis, gait advocated that the agricultural value chain employ a suitable production model to unite the production, processing, and sale of agricultural products, decreasing intermediate circulation links and realizing the value-added of agricultural products (kaplinsky, 2000). porter's enterprise value chain theory inspired the agricultural value chain model suggested by kaplinsky. he evaluates the primary and supplementary agriculture value chain operations (wei, 2021). in 2016, the central committee of the communist party of china emphasized the need to reconstruct the agricultural industry value chain, promote the compelling connection between farmers and the market and agricultural modernization, and establish a new mechanism for increasing production and income (peng et al., 2016); integrate the value-added benefits of development and cultivate a new mode of increasing farmers' income" (zeng et al., 2016); the "national rural revitalization strategic plan (20182022)" also clearly points out that "it is necessary to cultivate agricultural and rural areas and rural revitalization." (as shown in figure 1). the report of the 19th national congress of the communist party of china proposed to "promote the industry to the middle and high end of the global value chain." based on this, this paper will focus on realizing the value-added of the entire agricultural industry chain and improving the management mechanism, analyzing the industrial chain, value network theory, and the existing management mechanism, and constructing the whole agricultural industry chain. hopefully, this paper's innovation path and management mechanism can provide a reference for promoting the value-added management of the entire agricultural industry. figure 1 distribution map of major rural revitalization industries in china [ source: author] the agricultural value chain consists of the people and processes involved in getting a core agricultural commodity, such as maize, vegetables, or cotton, from the field to the client via processing, packaging, and distribution operations. high-value chains may increase access, availability, and food quality by improving production levels, diversifying farms, raising wages, reducing post-harvest losses, and creating new technologies to exploit natural resources more efficiently. (vidergar et al., 2021). adding value to agricultural products is a lucrative endeavor with higher investment returns due to the possibilities of expanding markets, extending the producer's marketing seasons, and gaining new recognition for the farm. as producers capitalize on high-demand market niches, they gradually provide valueadded products to the local marketplace. this is the cornerstone for the success of value-added agriculture: niche products where smaller manufacturers may successfully add value and establish a lucrative business. product circulation can be evaluated based on the agbioforum, 24(2), 2022 | 164 talib, chaofan, ruihua and teo. — research on the value-added path and management mechanism of the whole agricultural… relationship, cost, and amount of product awareness. the circulation of agricultural commodities requires numerous linkages, and each link is successfully coupled to form the circulation value chain. (pompeu et al., 2021; faezi & alikhademi, 2021; le, quang, bui, & thi, 2022; baahkumi, & lee, 2021; dey, 2022; rehna & inamdar, 2022). however, the circulation and development of agricultural goods are strongly intertwined. they can only be limited to a few locations due to their dependence on their living activities and annual temperature variation. as a result, agricultural goods' circulation value chain is significantly diverse from that of other commodities, as is their method of value addition. china is still mired in creating the agricultural goods value chain, although other nations have made more significant progress in this sector. blockchain technology, strategic communications, and the usage of consensus mechanisms throughout all stakeholders' networks of supply chains prevent the need for a secure central structure 13. among the numerous obstacles, farmers face climate change, soil erosion, and biodiversity decline. it is crucial to stay up with the ever-changing preferences of clients. increase output to meet the rising demand for healthful foods. based on these facts, the current study seeks to identify the existing paths of value-added mechanisms within the agricultural industry chain to propose a reconstructed value chain centered on technology integration and innovation, strengthening the supply network for agricultural products in china and enhancing flow effectiveness. based on the value network, this paper covers the research on the value-added path and management mechanism of the entire agriculture industry chain. the remaining portions of this article fall under the following headings: the related concepts and theoretical foundation are presented in section two, followed by the analytical concepts and methods of the value-added industry chain in section three, the existing paths of the value-added agricultural industry chain in section four, the system composition and value-added model of the agricultural whole industry chain based on the value network in section five, and the conclusion in section six. 2. literature review the value chain for value-added agricultural products might satisfy the utility demands of circulating subjects, significantly increase the efficiency of producing and distributing agricultural goods, and encourage the expansion of local livelihoods and farmers' incomes. peng et al. (2016) examined the value-added mechanisms of the circulation value chain of farming goods from five perspectives to encourage the synchronized expansion of various circulating organizations and boost the value chain's economic benefits. the conventional organizational structure has produced outcomes regularly enhanced, promoted, and implemented to increase agricultural productivity in rural areas. wang analyzed and evaluated the growth state of domestic and global industrial value chains based on the interpretation of the agricultural product industry's value chain and value flow and ultimately suggested an upgrade path to boost the stream of the chinese agricultural industry's value chain. the technical agglomeration effect of the firm determines the enhancement of the agricultural commodities industry's value chain flow. by comparing the domestic and international development of agricultural product value chains, it is possible to construct a specific plan to increase the industry's value addition and provide advice for a long-term strategy to increase china's industry's value flow. xu (2019) discussed their uses in agricultural safety monitoring in this review, including agricultural film production, agricultural sewage treatment, and the targeted identification of hazardous residues in agricultural goods. song et al. (2022) examined the development of land consolidation in china, then looked at its present status, traits, and potential effects, as well as the driving forces behind land consolidation's promotion of rural revitalization. it then described a realistic strategy for using land consolidation to revitalize a specific rural area. wingreen et al. (2019) analyzed the growth and changes in internet technology in the agricultural industry chain from source to operations, production, service, security, and sales & studied a production experience model iterative upgrade to enhance the development quality of agricultural e-commerce and broaden the integration model of ecommerce. a blockchain-based system for tracking agricultural products is also suggested at the same time. (l. zhang et al., 2021) thoroughly examined the primary funding sources and the primary needs of chinese family farms. the survey's findings indicate a significant financial gap and a high demand for modern agricultural equipment among family farms. vidhate et al. (2023) discussed the idea and features of the agricultural industry chain's vertical coordination mode, and an analysis of the purpose and role of vertical collaboration in that chain was conducted. the research was done on the variables affecting agricultural players' decisions about vertical coordination mode. an evolutionary game model based on governments, telecom companies, and agricultural firms was created to examine the model's equilibrium stability and evolutionarily stable strategy. the model was inspired by blockchain in an agricultural scenario. from a supply chain management perspective, the primary goal of this research is to try to increase trust among agricultural supply chain parties to guarantee food quality, safety, and sustainability. the key issue is using a decentralized technology that is not dependent on the trust of a central authority or organization for the entire supply chain (zutsara, 2021). zhang et al. (2021) constructed a financial coordination model for the agricultural supply chain and introduced the shapley value method income distribution model. the findings demonstrated the economic viability of agricultural supply chain financing and showed how it might significantly increase the participants' revenue in the agricultural and industrial chains. presented a general introduction to blockchain technology and discussed its agbioforum, 24(2), 2022 | 165 talib, chaofan, ruihua and teo. — research on the value-added path and management mechanism of the whole agricultural… possibilities for creating a trustworthy and secure agricultural supply chain. systems for managing the agriculture supply chain are essential for moving food items from producers to consumers. supply chain management in the agricultural industry is covered in study (l. zhang et al., 2021). customers and supporting members comprise the two kinds of supply chain members managed by supply chain management (scm) (devi et al., 2021). agricultural farm wastes generated during crop harvest constitute a significant source of concern due to issues with environmental contamination, village sanitary, recycling, and usage. by using microorganisms with specific functional features, such as biological control, plant development stimulants, phosphate emulsifiers, and nutrient organizers, researchers (pratap singh et al., 2017) have standardized a method of biomass conversion of commercial agriculture waste at the farmer's farms into bio compost for field application. after the process had been standardized, 456 farmers in various villages in eastern uttar pradesh, india, were shown how to use it. numerous farmer groups have embraced the biomass conversion technique to create bio compost and value-added bio-farm supplies and market the products for monetary gain. 2.1 value chain theory a value chain is a concept that incorporates every step of a company's operations in developing a product or service, from acquiring raw materials to the ultimate shipment to the client—value chains aid firms in offering the most significant value for the least amount of money. the ultimate goal of a value chain is to provide a company with a competitive edge by increasing production and reducing costs. with the changes in the competitive environment, the organizational form of the industrial chain, and other factors, the majority of businesses are beginning to understand that the value network is the relationship and structure of value generation, distribution, transfer, and use of the participation and mutual influence of various stakeholder’s form that. to realize the goal of realizing value creation and value appreciation together 9. david bovet argues in his book "value web: breaking the supply chain to discover hidden profits" that the value web explains the relationship between all participants in a business activity and that the value web consists of customers, suppliers, competitors, and complementary composition (kaplinsky, 2000). the value network is a value management system developed by collaboration and led by customer value. realize the complete integration of the value network's functioning, respond rapidly to client requests, and deliver individualized value. create more customer value. however, businesses should focus on value activities with inherent advantages and the management of the industrial chain's value system. the value network is a platform for optimizing and enhancing firms' core resources and competitiveness, which can minimize the transaction costs of the industrial supply chain and enhance the efficiency of customer value transfer (wei, 2021). virtual enterprises, technology, and operations will influence the value network's resource allocation and added value. modularization, knowledge innovation, and efficient synergy can result in value innovation and additional value (zeng et al., 2016). integrating multiindustry value chains and value systems are fundamental to the value network. it is possible to create competitive advantage effects such as network economy, scale economy, risk confrontation, stickiness effect, and speed effect; developing a customer-centric value creation network is the most recent trend in the evolution of contemporary enterprise organizations (vidergar et al., 2021). by developing a vertical, horizontal, cross-industry, and three-dimensional value network system, the matching and selectivity between the core bodies of the industrial chain will be improved, as will the correlation and innovation of technology, knowledge, and information between industries. expand the vitality of the industrial chain, create space for innovation and development, improve the ecological value attributes of interaction, evolution, expansion, and symbiosis amongst various entities, expand synergy capabilities, and increase valueadded. the value network is a value-added perspective based on variety, openness, innovation, and dynamism that emphasizes the value added by innovative activities. in his famous management book "competitive advantage," harvard professor michael porter coined the term value chain, stating, "all of these operations can be represented by a value chain." his emphasis on enterprise management is not limited to a single management action or connection but rather a dynamic and holistic approach along the enterprise value generation process. these seemingly unrelated activities coexist. all management actions are intimately tied to the creation, transmission, increase, and exchange of value, with the continuity of management building a dynamic chain and passing it on to the terminal market to complete the value; this is the enterprise's value chain. as people's comprehension of the value chain increased, numerous academics and businesspeople began to expand their tentacles in all directions. according to the current value chain theory, the industrial chain is the process of value generation and creation from the standpoint of the industrial chain (as shown in figure 2). 3. value network a value network outlines the connections between departments and agencies in which employees develop strategies or market goods and services that improve corporate performance. the value network comprises corporate employees, their employment, or a combination of both. the network can be represented graphically to illustrate the social and technological resources available to the company and how they are utilized to its advantage. the nodes in the diagram represent persons (actors or roles in the network), and the links connect them. the connections can be created with objects, cash, or knowledge. the value agbioforum, 24(2), 2022 | 166 talib, chaofan, ruihua and teo. — research on the value-added path and management mechanism of the whole agricultural… network is the structure and relationship of value production, transfer, and realization resulting from the interaction of network nodes. customer demand commences and concludes the value network (as shown in figure 3). figure 2: the relationship between the industrial chain and the value chain [ source: author] the value network imparts the ecological traits of mutual evolution, growth, and environmental reliance to the relationship between firms. present network features and dynamic associations, expand the dynamic development area of organizations, encourage value creation, enhance the value identification system, increase resource value, and effect network node interactions. as an asset, it influences the network structure and direction of value creation and realization. fang benxin and zhang ning investigated the relationship between value network creation and artistic invention while discussing the innovative relevance of value networks from a cultural perspective. their value network not only generates a one-of-a-kind enterprise value creation model, but it also generates an open, equal, shared, and creative cultural space, enhances the interaction between enterprises and the external environment, optimize internal processes, and facilitates the exchange of product knowledge. figure 3: value network node diagram [ source: author] agbioforum, 24(2), 2022 | 167 talib, chaofan, ruihua and teo. — research on the value-added path and management mechanism of the whole agricultural… 3.1 analytical ideas and methods of valueadded industry chain according to a report by the organization for economic cooperation and development (oecd) on multifunctional agriculture, agriculture has economic, ecological, qualitative, cultural, and other roles focused on supplying the basic material life and production needs of humans. since 2007, the central committee of the communist party of china's no. 1 document has said that "we must energetically promote an in-depth exploration of the functions and functions of agricultural and rural areas, and cultivate and spread new industries and new business forms in rural areas" (pompeu et al., 2021). by increasing and leveraging agriculture's multifunctional utility, we may enhance its economic, ecological, qualitative, and cultural benefits. to study the value-added of the industrial chain, it is necessary to systematically and thoroughly analyze the types, directions, and paths of value-added, focusing on how to create value, what value to create, and how much value to create, to expand the value-added space and path comprehensively, and to release energy value. from the standpoint of value-added types, it is required not only to actualize product value-added but also to consider the coordination of value-added services, scale, technological innovation, brand, and industrial chain; consider the significance of indirect value-added functions. from the perspective of the scope and responsibilities of valueadded subjects, it is necessary not only to realize the local value-added of a particular link or node but also to realize the overall value-added of the entire industrial chain; from the perspective of value-added, it is necessary not only to implement positive value-added, such as value creation and value-added, etc. but also to implement inverse valueadded, such as reducing costs, preventing and eliminating waste, etc 3.2 stock value appreciation assuming that the transaction subjects in the industrial chain are agricultural production businesses and consumers, the industrial chain's value is indicated by the total corporate earnings and consumer income. it is also the predicted value of consumers minus corporate consumption. equation (1) can be solved as follows: industrial chain value = consumer benefit + corporate profit = consumer expected value enterprise consumption value k=（v-p）+（p-c）=v-c (1) among them, k represents the value of the industrial chain; v represents the expected value obtained by customers from the product; p represents the product's sales price; c represents the cost of the enterprise. the value k in a particular state in the agricultural industry chain is determined by the difference between the consumer's expected value v and the enterprise's consumption value, c. 3.3 incremental value added following the above calculation formula and code: k=vc, further analysis shows that the incremental value added in the value-added process of the industrial chain is usually manifested in two aspects of increasing revenue and reducing costs (prashar et al., 2020), as follows: equations (2) are described below △k=（△v-△p）+（△p-△c）=△v-△c (2) among them, △k represents the incremental value; △v represents the value-added part that consumers are willing to pay for the product because they have obtained more new benefits or value redundancy from the cooperation of the industrial chain; △p represents the products in the industrial chain, value amplification effects such as services and opportunities; △c represents the impairment of consumption value such as industrial chain collaboration, such as the value increment brought by cost reduction and risk reduction. specifically, in the value activities of the agricultural industry chain, the change of the expected value increment △v can be expressed as the change in income and profit, the change of the ecological environment, the level of industrial development, the influence, the ability and quality, the transformation of the brand image, etc. the evolution of incremental △c caused by the loss of consumption value is manifested in the changes in input cost, transaction cost, and management fee of the industry chain, utilization of idle resources, avoidance of waste, risk reduction, etc., both of which jointly determine the incremental value of the industry chain: the change and degree of △k. 4. existing paths of value-added agricultural industry chain 4.1 technology-infiltration path by introducing advanced technology enterprises or core enterprises with particular strengths, agricultural innovation technology will be transferred and penetrate the agricultural industry. then the advanced technology resources will be gathered into the agricultural industry chain by imitating, learning, digesting, absorbing, and innovating. the combination of these factors will form a vertical cooperation chain in the agricultural industry, improve the efficiency of agricultural resource allocation, and increase the economic value of inventory (figure 4). at this time, △v increases; the technical level and management level of agricultural enterprises have also been improved; after the vertical cooperation of the industrial chain is deepened, the uncertainty risk and transaction cost of transactions are reduced; that is, the △c is reduced. this path generally applies to regions or stages with weak agricultural foundations, backward technology, and weak resource allocation capabilities, mainly focusing on the integrated development of primary and secondary industries. agbioforum, 24(2), 2022 | 168 talib, chaofan, ruihua and teo. — research on the value-added path and management mechanism of the whole agricultural… figure 4 "technology-infiltration" path relationship diagram [source: author] 4.2 disassembly – reconstruction path the conventional backward agricultural sector is shattered, differentiated, or destroyed through industrial "collapse" and recreated through innovation and integration to build an innovative and open industrial integration system. it typically occurs between industries or internal subindustries closely associated with traditional agricultural sectors. decentralized and autonomous products or services are reformed under the same standard to produce an all-encompassing new corporate structure (figure 5). through the rebuilding and integration of the industrial chain, the agricultural system may accommodate new formats, such as new farmers and dwellings, and linked industries, such as agriculture and aquaculture. this road maximizes the agriculture industry's universality, which is conducive to compensating for the deficiencies of a single operation, introducing resource innovation and market interaction, optimizing resource allocation, enhancing added value, and achieving value-added. in addition, the initial idle agricultural production resources and surplus labor have been fully employed, resource idleness has decreased, δc has decreased, and δk has increased. figure 5: "disassembly-rebuild" path diagram [ source: author] agbioforum, 24(2), 2022 | 169 talib, chaofan, ruihua and teo. — research on the value-added path and management mechanism of the whole agricultural… 4.3 interaction-coupling path this road's primary purpose is to bring out the best in various industries, favorably impact products and their environments, capitalize on the complementary relationship across sectors, and break down the obstacles that limit a single industry's supply chain. forming a new pattern or model in which the primary, secondary, and tertiary industries are complimentary, open, and integrated helps break down mutual barriers and borders across industries while growing value-added sectors, space, and prospects (figure 6). this enables the interaction and linkage between several sectors to be realized. for instance, the traditional interactive coupling of agriculture, leisure tourism, the medical industry, etc., has resulted in the formation of a new multi-level ecological agriculture model, such as resort towns, medical and health towns, urban forests, etc., which offers more excellent products or services to satisfy the diverse needs of consumers. under this path, on the one hand, industrial integration improves the level and efficiency of industrial synergy, obtains an increase in potential quality value and intangible brand value, and dramatically promotes the substantial growth of the industry; on the other hand, it reduces the without transaction costs and inconveniences, c decreases while k increases rapidly. figure 6: "interaction-coupling" path relationship diagram [ source: author] 5. system composition and valueadded model of agricultural whole industry chain based on the value network 5.1 system composition the entire agricultural supply chain is in a state of constant growth and ascent. the value network approach focuses primarily on the research and development, planting and breeding, production and processing, and sales of agricultural and ancillary products, including preproduction and post-production activities. 21. composed of the value chain, the information chain, and the organization chain, the organic whole fulfills the comprehensive value-added activities of every industrial chain link (figure 7) 22. the internal system consists of the following: • the middle layer is industry-wide and concentrated on the industrial chain's upstream and downstream operating procedures—logistics direction. through upstream agricultural technology research and development, midstream processing and circulation, and downstream selling, a community of industrial destiny is created with vertical and horizontal linkages, industrial chain integration, and networking. master market circumstances, information, and feedback for upstream decision-making. • formulate standardized industry guidelines, standards, and agricultural product quality management systems at the advanced level. • downstream refers to the specific standards implementation operations. the external technology and service system comprises big data, the internet of things, artificial intelligence, blockchain, an electronic settlement system, a mobile intelligent terminal, and other technical applications, as well as various social and virtual services, such as specialization, industrialization, and a cloud-based innovative service platform. the service system provides technical and platform service support for the value-added of the agricultural industry chain, promotes information transmission and sharing, enhances operational efficiency and level, and encourages the formation of a mutually beneficial and symbiotic value network system for the entire agricultural industry to realize the value-added of the entire industrial chain. agbioforum, 24(2), 2022 | 170 talib, chaofan, ruihua and teo. — research on the value-added path and management mechanism of the whole agricultural… figure 7: the composition of the whole agricultural industry chain system based on the value network [source: author] 5.2 value-added and new-type interests of the whole agricultural industry chain based on the value network the agricultural industry needs adjustment and revitalization, and the best way to do so is by enhancing the added value of the agricultural industry chain as a whole (gao et al., 2017; tu et al., 2017). this means connecting the value-added process and value-added activities to form an industry chain that covers the upper, middle, and lower reaches (pratap singh et al., 2017). by doing this, new interests of different stakeholders can be established (figure 8). the added value of the agricultural industry chain can be divided into three parts: upstream, midstream, and downstream. the upstream link is responsible for output value, which is increased by sales prices and costs. the midstream link processes agricultural products, reducing processing costs and logistics costs. the added value of deepprocessing specialty products and by-product income is also increased (nang'ole et al., 2011). the downstream link is consumption value, which mainly meets the utility value of consumers. this is done by providing unique products and increasing prices to get more premiums (sun, 2018). the interconnection and cooperation of upstream and downstream links can save costs, improve efficiency, reduce risks and learn value-added. 5.3 the value-added innovation path of the whole agricultural industry chain based on the value network faced with factors that inhibit value appreciation, such as the inadequacy of agricultural industry chain operation, it is essential to redesign the entire agricultural industry chain (figure 9). customer value drives the industry chain's valueadded, which involves all partners' participation and contribution. this study dialectically explores the valueadded value realization mechanism, including how to realize the value-added value of the entire industry chain, how to develop a new collaborative connection based on the value network, and how to redefine the role of each topic in the value network. (c. zhang, 2020). and positioning. explore the application of big data, the internet of things, artificial intelligence, and other information technologies in the agricultural industry chain, construct a value-added innovation path of "internet + agriculture," integrate deeply into the agricultural industry chain, transcend industrial boundaries, and transform into an "agricultural industry ecosystem," introduce new partners, boost reverse revenue streams, etc., update the entire agricultural industry chain, develop chain network aggregation and synergy effects, and create new channels and mechanisms for the value-added of the entire agricultural industry chain. for instance: integrate the agricultural sector with the current information services sector to create new three-dimensional business models, such as intelligent agricultural ecological zones and "internet + agriculture" industrial clusters. customers derive value and extra value from more innovative products and services. the reciprocal industrial circle also dramatically minimizes transaction costs and risks; △c is significantly lowered, and geometric or even exponential growth of △k is encouraged. agbioforum, 24(2), 2022 | 171 talib, chaofan, ruihua and teo. — research on the value-added path and management mechanism of the whole agricultural… figure 8: the value-added and interest relationship model of the entire agricultural industry chain based on the value network [source: author] figure 9: influence mechanism of value network on agricultural industry upgrading [source: author] 6. reconstruction of the value chain reconstructing the agricultural industry chain, realizing the value-added value of the industrial chain, and providing more incremental benefits from the value-added value are essential to rejuvenating and advancing the agricultural sector. the primary issue is how to actualize the value-added of the entire agricultural industry chain, and a corresponding implementation mechanism must be established and enhanced. 6.1 improve the integration mechanism of resource optimization and competitive advantage in the whole agricultural industry chain the value network is fundamentally a model of group rivalry and resource optimization. through the complementarity of resources and capabilities of diverse value network members, innovation of technical knowledge, mutual trust, and cooperation, we may produce agbioforum, 24(2), 2022 | 172 talib, chaofan, ruihua and teo. — research on the value-added path and management mechanism of the whole agricultural… more excellent customer value, obtain added value, and achieve a competitive advantage. 27. it is necessary to thoroughly comprehend and identify the mechanism and laws of agricultural multifunction and its interaction, to enhance the optimization and integration mechanism of agricultural multifunction and resources, to establish and enhance national policy support based on the development of agricultural multifunction, and to innovate agricultural formats and business models. 28. establishing and enhancing the positive incentive and reverse pressure mechanism for agricultural multifunctional external economic growth, as well as making good use of this mechanism, would encourage the transformation and upgrading of the labor-intensive agricultural industry. technology-intensive or knowledge-intensive, to enhance the value positioning, level, and image of the agricultural industry chain and strengthen the value-added foundation (industry value-added, as shown in figure 10). figure 10: value comparison before and after the improvement of the industrial chain [source: author] 6.2 shaping the cultural value integration and recognition mechanism of the whole industry chain because the value network transcends the constraints of time and geography, many values and ideologies are intermingled and in conflict, which may result in the depletion of the industrial chain's value. evaluation and exchange of value comprise the heart of the unified identification system for cultural value. the culture and psychology of the effective use of the overall value network of the agricultural industry chain provide identification, realize the evaluation of value, and pay greater attention to the strategic position of agriculture—value chain, organizational culture identity, knowledge innovation, and business model innovation, among others. 29. through knowledge exchange and rewards, attractive and innovative value creation network culture, attracting diverse stakeholders to participate, to develop their value, equality, and openness to innovate the direction and action of shared cultural value comprehensively, agricultural industry, and integrated chain stores will be able to flourish. the spiritual force provided by the innovation and value evaluation of the entire agriculture industry chain is the cohesion of external interactions. 30. consequently, the agriculture industry chain's added value and competitiveness are substantially strengthened. figure 11 demonstrates that cultural value has a lower production cost than identical value. figure 11: comparison of traditional value and cultural value [source: author] agbioforum, 24(2), 2022 | 173 talib, chaofan, ruihua and teo. — research on the value-added path and management mechanism of the whole agricultural… 6.3 improve the resource allocation, knowledge innovation, information sharing, and relationship governance mechanism of the industrial chain value network building and enhancing systems for value-added resource allocation, knowledge innovation, information exchange, and relationship governance inside the industrial chain can enhance its power and organizational strength. in this manner, each enterprise inside the chain may continuously innovate and adjust its resources, enhancing its capacity for value creation. a proper relationship governance system may promote and integrate positive adjustment and improvement between firms, eliminate friction and conflict in the industrial chain, and achieve a broader range of products with better-added value. several mechanisms, such as a value target coordination mechanism, a dynamic organizational mechanism, and an action coordination mechanism, can create value in an industry chain. each industrial chain's leaders must comprehend the pertinent leadership motives for their actions to represent a valueadded, interdependent, and symbiotic interest relationship. the rate of information transmission and service delivery is increased. this can decrease costs, mitigate risks, and generate extra value. 31. the value network is an innovative kind of value chain organization that fosters the innovation of the value network in various ways in terms of technology, management, evaluation, etc. • scientific and technological innovation to promote the penetration and application of a new generation of information technology, such as big data, the internet of things, etc., in agricultural production, operation, processing, distribution, and services, etc.; development of a system-wide data management information platform and agricultural industry chain accelerate the construction and deployment of the agricultural product value network system, enhance data collection and exchange, encourage deep integration, the development of agriculture and information technology, and foster a new generation of information technology firms. it generates higher value addition (song et al., 2022). • technology management innovation through mergers and acquisitions, joint research and development, intrapreneurship, innovative virtual collaboration innovation to strengthen business management modules, etc., the industrial chain virtualisée and use of virtual reality technology, big data, virtual blockchain, and other organizational methods and information technology, intelligent logistics, intelligent warehouse network marketing, etc., actively promote the construction of the internet of things (see figure 12). • in response to the complexity and flux of value networks and interests, a value-added evaluation, reward, and punishment mechanism that facilitates dynamic adjustment according to the degree of collaboration and contribution has been established. the value distribution increases the incentive, capability, and competitive advantage of the entire agriculture industry chain to create value. figure 12: virtual value chain management diagram [source: author] 7. conclusion increasing value and enhancing the management mechanism are the primary obstacles to rural revival promotion. this article investigates how the value network, as an innovative value chain organization, might foster innovation in rural areas. promoting virtual information value chain management and an innovationdriving mechanism for internet value technology may effectively boost the added value and industrialization of information products and revive and develop the entire agricultural industry chain. to actualize value-added for information products and the complete agriculture industry chain, it is required to create value from the value-added subject's perspective, as well as to cut costs, prevent hazards, and create value in reverse from the perspective of added value. this research was conducted to establish a framework for evaluating the level of blockchain agbioforum, 24(2), 2022 | 174 talib, chaofan, ruihua and teo. — research on the value-added path and management mechanism of the whole agricultural… technology development in the agricultural supply chain. it is recommended that future studies utilize multiple maturity models for each supply chain node. this will allow for a more accurate evaluation of the amount of development of blockchain technology at each stage of the agricultural supply chain. reference baah-kumi, b. ., & lee, y.-f. . 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co2 emission; indonesia; qardl. 1. introduction palm oil is the world's most widely used edible oil, and indonesia is one of its top producers. according to the united states department of agriculture, global palm oil production increased from 15 million tons (mt) to 70 million tons (mt) between 1995 and 2017, with indonesia being the largest producer since 2007 and the united states coming in second (xin et al., 2021). palm oil positively affects indonesia's economy, substantially contributing to economic growth and being a leading export commodity. in 2014, palm oil comprised 17% of indonesia's agricultural gross national product (purnomo et al., 2020). palm oil's primary agricultural export from indonesia has evolved into a critical sector for the nation. 2017 palm oil exports were valued at usd 23 billion (purnomo et al., 2020). additionally, palm oil plantations contributed to the growth of rural villages. 50 percent of the palm oil plantations in indonesia are owned by large corporations with mills, while local farmers own 40 percent. the government of indonesia owns the remaining 10% of the plantations. according to research, palm oil farmers in rural areas are more successful than farmers of other commodities (pratama, 2021). seven point eight million hectares of oil palm were harvested in indonesia in 2013 (svatoňová et al., 2015). figure 1 illustrates the trend of palm oil production in indonesia during the past three decades. besides been criticized for invading villagers' resource rights, exacerbating conflicts with local people, as well as intensifying social inequalities and ecologic inequity (abram et al., 2017; inoue et al., 2013; obidzinski et al., 2014; sheil et al., 2009), the positive effects of palm oil production on employment and economic development are remarkable. large-scale oil palm cultivation has increased the living standard and profits of palm oil companies in tropical regions. it is the most economically lucrative and productive oil crop due to its high yield, low costs, and ease of establishment. in 2017, indonesia's oil palm sector employed 3,8 million people and produced 39 million metric tons of palm oil from 14 million hectares of palm farms (xin et al., 2021). it is predicted that between 2000 and 2016, oil palm production and cultivation development moved about 2.6 million indonesian households over the poverty line (edwards, 2019). in addition to indonesia, the worldwide palm oil business is enormous, with annual sales reaching us$ 50 billion (murphy, 2014). kernel palm oil is used in detergents, cosmetics, plastics, and chemicals, whereas crude palm oil is generally used to make food and biofuels (arshad et al., mailto:nurhayati@uisu.ac.id mailto:asmanizar_az@fp.uisu.ac.id mailto:rizalaziz@staff.uma.ac.id mailto:1970kartikaekasari@gmail.com mailto:hartinabeddu79@gmail.com agbioforum, 24(1), 2022 | 194 nurhayati, asmanizar, aziz, ekasari and beddu. — analysis of agronomy and environmental impacts of palm oil production… 2022; evers et al., 2017; panyasit et al., 2022; rapankum et al., 2022). however, according to studies, palm oil production is a significant source of co2 emissions in agricultural production (khong, 2022; manning et al., 2019; nnamchi et al., 2022). the palm oil industry's carbon emissions consist of cultivationand palm oilprocessing-related emissions. the cultivation stage of oil palm contributes the most to global warming, which comprises farming (15%), clearing (17%), and replanting (18%). figure 1. palm oil production in indonesia (1980-2019) land conversion, specifically for oil palm plantations, is primarily responsible for the increase in co2 emissions attributable to this crop. in addition, three other inputs utilized in an oil palm plantation, mainly fertilizer, insecticides, and diesel fuel, are also responsible for world pollution. it contains 104.37 kilograms of urea, 109.73 kilograms of phosphate, and 97.92 kilograms of dolomite. the nitrogen content of urea helps plants produce more chlorophyll, a sort of green leaf material (wahyono et al., 2020). fertilizer consumption results in emissions that account for more than half of all plantation emissions (kusin et al., 2015). the expansion of the oil palm business has also been connected to the destruction of forests and peatlands (purnomo et al., 2020). deforestation has negative repercussions, such as biodiversity loss and climate change. by emitting co2 into the atmosphere, deforestation exacerbates the greenhouse impact. palm oil plantations are the primary drivers of deforestation in indonesia. the demand for palm oil has greatly increased the quantity of land required to produce it (lestari et al., 2022; maheswaranathan et al., 2022; vijay et al., 2016). increasing global demand for palm oil compels investors to clear more forests for more extensive plantations (pratama, 2021). even worse, it will take decades for nature to replace the carbon stocks lost due to peat forest conversion (khalid et al., 2022). in indonesia, oil palm expansion is widely blamed for peatland erosion and deforestation (koh et al., 2011). similarly, palm oil production involves power, diesel, and water. the production of oil palm requires 95.81-kilowatt hours of energy. diesel fuel drives a 4.9-liter generator and a 2.54-liter 10-ton truck (siregar et al., 2015). 5.75 cubic meters of water are consumed by the boiler unit (soraya et al., 2014). emissions from palm oil extraction influence water and land. the water emissions amount to 3.83 m3 (soraya et al., 2014), while press cake, shell, kernel, fiber, and ash are discharged into the land, resulting in soil pollution (egberi, 2022; le et al., 2022; ogali, 2022; wahyono et al., 2020). plans to expand oil palm plantations in indonesia have raised environmental and political concerns. some believe oil palm can aid in climate change mitigation, offer an alternative energy source, and contribute to rural life and economic development (obidzinski et al., 2012). others are concerned with unintended economic, social, and environmental consequences (colchester, 2011; fitzherbert et al., 2008; marti, 2008; sheil et al., 2009). (obidzinski et al., 2012). indonesia, one of the world's leading emitters, has set a target to reduce its emissions by 26 percent below current levels by 2020. however, expanding palm production cannot meet emission reduction goals because peatland destruction accounts for more than 75 percent of indonesia's co2-equivalent emissions (petrenko et al., 2016). in 2017, the european parliament passed a resolution mandating palm oil 0 5000000 10000000 15000000 20000000 25000000 30000000 35000000 40000000 45000000 50000000 m ill io n to n s year palm oil production agbioforum, 24(1), 2022 | 195 nurhayati, asmanizar, aziz, ekasari and beddu. — analysis of agronomy and environmental impacts of palm oil production… consumption restriction by 2021. unfortunately, this ban is perceived as harmful for nations whose major source of gdp derives from palm oil. the export of palm products and oil is an essential source of revenue for nations such as indonesia, which have achieved remarkable economic growth to date (khalid et al., 2022). prior research on the relationship between palm oil production and environmental degradation emphasized the review of typical conditions in indonesia and other countries (agus et al., 2013; castanheira et al., 2017; choo et al., 2011; lam et al., 2019; shahputra et al., 2018), but did not consider empirical evaluation of the impact of palm oil production on environmental quality. therefore, this study's primary purpose is to assess the effects of palm oil production on co2 emissions in indonesia over the period 1990-2020. this is the first empirical study to evaluate the consequences of the palm oil industry on co2 emissions, a topic that requires immediate scholarly attention in light of the european union parliament's prohibition on palm oil production. in particular, the study makes a significant contribution to the literature by evaluating the impact of palm oil production on co2 emissions in the context of indonesia, one of the world's largest palm-cultivating and palm oilproducing nations, and the absence of any assessment of its high-income palm industry in an environmental context. in addition to its originality, the study's evaluation of the impact of oil production using the qardl method is particularly noteworthy. qardl has a significant advantage over linear ardl estimation because it introduces possible asymmetries under different quantile ranges. additionally, the qardl methodology is believed to be better than other linear models in three ways. the first step is to investigate the location-based asymmetry within the conditional distribution. second, it is advantageous to consider the longand short-term connections between variables simultaneously. thirdly, this model allows the cointegration coefficient to vary across quantiles in response to shocks. this method is also helpful in dealing with both short-term and long-term estimations (sun et al., 2022). following this first portion of the introduction, the study is organized as follows: a concise literature overview is presented in section 2. variables, data, and approach are discussed in section 3. the fourth section contains empirical studies and associated debates. section 5 concludes the investigation and makes policy suggestions. 2. literature review since agriculture has been identified as a source of pollution emissions, researchers have begun investigating the effects of agriculture on pollution emissions (alam, 2015; dey, 2022; doğan, 2019; gokmenoglu et al., 2018; karimi alavijeh et al., 2022; phiri et al., 2021; yurtkuran, 2021). however, researchers have not thoroughly examined the influence of agriculture-related products such as oil and palm oil production. using methods of moment quantile regression, (ike et al., 2020) examined the effect of oil production on co2 emissions in fifteen oilproducing nations. according to the findings, co2 emissions from oil production increased from the first to sixth quantiles. using driscoll-kraay standard errors, (mahmood et al., 2019) assessed the effects of oil prices, oil volatility, and economic growth on co2 emission in eu countries, oil-producing countries, china, and the united states. the authors discovered that oil prices and price volatility considerably impact greenhouse gas emissions in all panels of countries, including china and the united states. rajaeifar et al. (2014) evaluated the olive oil production life cycle regarding energy consumption and greenhouse gas emissions. the energy consumption and greenhouse gas emissions associated with olive oil production were discovered to be substantial. it was also found that olive oil production's energy use and fertilizer consumption increased ghg emissions. according to rosa et al. (2017), oil extraction from sand oils necessitated considerable water and deforestation in canada, resulting in environmental deterioration. taking into account research on oil palm agriculture and oil output, (khalid et al., 2022) for malaysia investigated the asymmetric and symmetric effects of palm oil production on carbon emissions from 1978 to 2018 using the nardl method. the scientists found that an increase in palm oil production reduced carbon emissions, whereas a drop in palm oil production increased co2 emissions. khalid et al. (2021) in a separate investigation for malaysia, linear and nonlinear estimation yielded the same results. saswattecha et al. (2015) investigated the effects of palm oil production on the environment in thailand and discovered that burning of fiber in boilers, fertilizer use in plantations, wastewater treatment, gasoline used in weed cutters, and glyphosate use for weed control were all the factors that led to environmental degradation in the studied region. (shahputra et al., 2018) examined the indonesian palm oil sector. it was determined that oil palm farming was related to poverty alleviation and an increase in the gross regional product. still, that palm oil production was also connected with increased carbon emissions. uning et al. (2020) examined oil palm plantations in the southeast asian region focusing on co2 emission. they discovered that oil palm cultivation activities such as deforestation and peat and biomass reduction produced more co2 emissions than any other crop in the region. munar et al. (2022) summarized the findings of studies that estimated the effects of palm oil production on greenhouse gas (ghg) emissions, with a focus on colombia and concluded that various activities associated with palm cultivation were responsible for ghg emissions. kusin et al. (2015) assessed the ghg emissions associated with the conversion of rubber plantations to palm plantations in malaysia's kempas estate. the change of crops from rubber to palm boosted the state's total carbon output. svatoňová et al. (2015) conducted a financial evaluation and sensitivity analysis of palm agriculture in north agbioforum, 24(1), 2022 | 196 nurhayati, asmanizar, aziz, ekasari and beddu. — analysis of agronomy and environmental impacts of palm oil production… sumatra, a tiny indonesian state, and discovered that palm cultivation was a successful venture in indonesia. assidiq et al. (2021) compared the conflicts of interest between indonesia sustainable palm oil and roundtable on sustainable palm oil as the laws aimed at governing peatland use for palm cultivations responsible for ghg emission and discovered that indonesia sustainable palm oil still permitted the production of palm on peatlands, which was in contrast to the goal of reducing ghg emission by 29% by 2030 in indonesia. 2.1 literature gap from the review of the literature present so far, we concluded that although the association between palm oil production and the environment is theoretically reviewed and discussed by the studies, the effect of palm oil production on the environment is not extensively empirically analyzed by the earlier studies and therefore this issue requires further investigation. indonesia is one of the world's top producers and exporters of palm oil; therefore, empirical examination of the influence of oil palm cultivation on carbon emissions is lacking in the existing literature and should be explored. in addition, this study makes a novel contribution to the literature by analyzing the impact of palm oil production on carbon emission in indonesia using the qardl approach, as opposed to (khalid et al., 2021, 2022), which enables researchers to test the relationship comprehensively across a wide range of quantiles. by filling these gaps, the present study represents an important contribution in palm oilenvironmental quality nexus literature, notably in indonesia. 2.2 data and methodology the present study examines the influence of palm oil output on co2 emission in indonesia from 1980-2020. co2 emission is the dependent variable for this purpose, while palm oil output is the primary explanatory variable. in addition, economic growth, energy consumption, and agriculture production are introduced as control variables to avoid model misspecification. table 1 provides the precise measurements and data sources for the study variables. the model of the study in its functional form is given as follows: co2 = f (poil, gdp, ec, agri) (1) while the model in its econometric form can be specified as : 𝐶𝑂2𝑡 = 𝛽0 + 𝛽1𝑃𝑂𝐼𝐿𝑡 + 𝛽2𝐺𝐷𝑃𝑡 + 𝛽3𝐸𝐶𝑡 + 𝛽4𝐴𝐺𝑅𝐼𝑡 + 𝜀𝑡 (2) table 1: variables description and data sources variables abbreviation measurement source co2 emission co2 carbon dioxide emission (kiloton) world development indicators palm oil production poil million tons our world in data energy consumption ec energy consumption equivalent of oil per capita world development indicators economic growth gdp gross domestic product (constant us$ 2015) world development indicators agriculture production agri agriculture value added (% of gdp) world development indicators this study examines the cointegration of palm oil output, energy consumption, economic growth, and agricultural production using the recently developed qardl estimation (cho et al., 2015). this model's strength is its potential to analyze the quantile long-run equilibrium effect of palm oil production, energy consumption, economic growth, and agricultural production on co2 emissions. we also check the time-varying integrations of the variables using the wald test, which examines the consistency of the integrating coefficients over quantiles. the conventional ardl approach for assessing cointegration between variables is as follows: 𝐶𝑂2𝑡= 𝜇 + ∑ 𝜎𝐶𝑂2𝑖𝐶𝑂2𝑡−1 𝑝 𝑖=1 + ∑ 𝜎𝑃𝑂𝐼𝐿𝑖𝑃𝑂𝐼𝐿𝑡−𝑖 𝑞 𝑖=0 + ∑ 𝜎𝐺𝐷𝑃𝑖𝐺𝐷𝑃𝑡−𝑖 𝑉 𝑖=0 + ∑ 𝜎𝐸𝐶𝑖𝐸𝐶𝑡−𝑖 𝑟 𝑖=0 + ∑ 𝜎𝐴𝐺𝑅𝐼𝑖𝐴𝐺𝑅𝐼𝑡−𝑖 𝑠 𝑖=0 + 𝜀𝑡 (3) where 𝐶𝑂2𝑡 − 𝐸 [ 𝐶𝑂2𝑡 𝑤𝑡−1 ] defines the error term 𝜀𝑡 , and 𝑤𝑡−1 refers to the υ field comprised of co2t, poilt, gdpt , ect, agrit, co2t-1, gdpt-1, ect-1 , agrit-1 and poilt-1. the schwarz information criterion (sic) is used to figure out the optimal lag orders in the model, which are p,q, v,r, and s. in the preceding equation, 3, co2t, poilt, gdpt , ect, and agrit represent the co2 emission, palm oil production, economic growth, and agriculture production, respectively. cho et al. (2015) modified and revised the model of the equation no 1 to create the basic version of the qardl model shown below: 𝑄∆𝐶𝑂2𝑡 = 𝜇(𝜏) + ∑ 𝜎𝐶𝑂2𝑖 (𝜏) 𝐶𝑂2𝑡−𝑖 𝑝 𝑖=1 +∑ 𝜎𝑃𝑂𝐼𝐿𝐿𝑖 (𝜏)𝑃𝑂𝐼𝐿𝑡−𝑖 𝑞 𝑖=0 + ∑ 𝜎𝐺𝐷𝑃𝑖 (𝜏) 𝐺𝐷𝑃𝑡−𝑖 𝑟 𝑖=0 + ∑ 𝜎𝐸𝐶𝑖 (𝜏)𝐸𝐶𝑡−𝑖 𝑠 𝑖=0 +∑ 𝜎𝐴𝐺𝑅𝐼𝑖 (𝜏)𝐴𝐺𝑅𝐼𝑡−𝑖 𝑢 𝑖=0 +𝜀𝑡(𝜏) (4) we refer to quantiles as, 𝜀𝑡 (𝜏) = 𝐶𝑂2𝑡 − 𝑄𝐶𝑂2𝑡 ( 𝜏 𝛿𝑡−1 ) (kim & white, 2003) and (0> τ < 1). this study reframes equation 4 to analyze qardl as follows: 𝐶𝑂2𝑡 = 𝛼(𝜏) + ∑ ∆𝑃𝑂𝐼𝐿𝑡−1 𝑞−1 𝑖=1 + 𝛾𝑃𝑂𝐼𝐿 (𝜏)𝑃𝑂𝐼𝐿𝑡 + ∑ ∆𝐺𝐷𝑃𝑡−1 𝑟−1 𝑖=1 + 𝛾𝐺𝐷𝑃 (𝜏)𝐺𝐷𝑃𝑡 + ∑ ∆𝐸𝐶𝑡−1 𝑠−1 𝑖=1 + 𝛾𝐸𝐶 (𝜏)𝐸𝐶𝑡 +∑ ∆𝐴𝐺𝑅𝐼𝑡−1 𝑢−1 𝑖=1 + 𝛾𝐴𝐺𝑅𝐼 (𝜏)𝐴𝐺𝑅𝐼𝑡 + 𝜀𝑡(𝜏) (5) the coefficients indicated in equation no 3 quantify the short-run dynamics. the long-run relationship between palm oil production, energy consumption, economic agbioforum, 24(1), 2022 | 197 nurhayati, asmanizar, aziz, ekasari and beddu. — analysis of agronomy and environmental impacts of palm oil production… growth, and co2 emission by rewriting equation 5 as equation 6: 𝑄𝐶𝑂2𝑡 = 𝜇(𝜏) + 𝑋𝑡 ′𝛽(𝜏) + 𝑀𝑡(𝜏) (6) with x = (poil, gdp, ec, agri) and 𝛽𝑃𝑂𝐼𝐿(𝜏) = 𝛾𝑃𝑂𝐼𝐿(𝜏)[1 − ∑ 𝜃𝐺𝑖(𝜏)𝑝 𝑖=1 ] and 𝑀𝑡(𝜏) = ∑ 𝜃𝑃𝑂𝐼𝐿𝑗(𝜏)∆𝑃𝑂𝐼𝐿𝑡−1 ⋈ 𝑗=0 + ∑ 𝜃𝑃𝑂𝐼𝐿𝑗(𝜏)∆𝜀𝑡−1 ⋈ 𝑗=0 , with 𝜇(𝜏) = 𝛼(𝜏)[1 − ∑ ∅𝑖 𝑝 𝑖=1 (𝜏)] 𝑎𝑛𝑑 𝜗𝑗(𝜏) = ∑ 𝜋1(𝜏).⋈ 𝑖=𝑗+1 we calculate all other explanatory variables in the same manner. we prevent the correlation of error terms by qardl generalization as follows: 𝑄∆𝐶𝑂2𝑡 = 𝜇 + 𝜎𝐶𝑂2𝑡−1 + 𝜋𝑃𝑂𝐼𝐿𝑃𝑂𝐼𝐿𝑡−1+ 𝜋𝐺𝐷𝑃𝐺𝐷𝑃𝑡−1+𝜋𝐸𝐶𝐸𝐶𝑡−1 + 𝜋𝐴𝐺𝑅𝐼𝐴𝐺𝑅𝑡−1+ + ∑ 𝜎𝐶𝑂2𝑖∆𝐶𝑂2𝑡−𝑖 𝑝 𝑖=0 + ∑ 𝜎𝑃𝑂𝐼𝐿𝑖𝑀𝑃𝑂𝐼𝐿𝑡−𝑖 𝑞 𝑖=0 + ∑ 𝜎𝐺𝐷𝑃𝑖𝐺𝐷𝑃𝑡−𝑖 𝑟 𝑖=0 + ∑ 𝜎𝐸𝐶𝑖𝐸𝐶𝑡−𝑖 𝑠 𝑖=0 ∑ 𝜎𝐴𝐺𝑅𝐼𝑖𝐴𝐺𝑅𝐼𝑡−𝑖 𝑢 𝑖=0 + 𝜀𝑡(𝜏) (7) there is still the likelihood of a contemporary relationship between co2 and poilt, gdpt, ect, and agrit. we can prevent past correlations by using co2 projections on poilt, gdpt, ect, and agrit of the form co2 = poilt + gdpt, +ect, and agrit. the prior projections are incorporated into equation 5, then generalized into a quantile regression model. therefore, the qardl error correction framework takes the following form: 𝑄∆𝐶𝑂2𝑡 = 𝜇(𝜏)𝜌(𝜏)(𝐶𝑂2𝑡−1𝛽𝑃𝑂𝐼𝐿 (𝜏)𝑃𝑂𝐼𝐿𝑡−1 (𝜏)𝐺𝐷𝑃𝑡−1+∑ 𝜎𝐶𝑂2𝑖 (𝜏)∆𝐶𝑂2𝑡−𝑖 𝑝 𝑖=1 + ∑ 𝜎𝑃𝑂𝐼𝐿𝑖(𝜏)∆𝑃𝑂𝐼𝐿𝑡−𝑖 𝑞 𝑖=0 + ∑ 𝜎𝐺𝐷𝑃𝑖(𝜏)∆𝐺𝐷𝑃𝑡−𝑖 𝑟 𝑖=0 +∑ 𝜎𝐸𝐶(𝜏)∆𝐸𝐶𝑡−𝑖 + ∑ 𝜎𝐴𝐺𝑅𝐼𝑖(𝜏)∆𝐴𝐺𝑅𝐼𝑡−𝑖 𝑢 𝑖=0 𝑠 𝑖=0 + 𝜀𝑡 (𝜏) (8) we calculate the cumulative effect of prior co2 on present co2 in the short run by 𝜎∗ = ∑ 𝜎𝐶𝑂2𝑖 𝑝 𝑖=1 , we measured the short-run effects of the previous and current levels of poil, gdp, ec, and agri by 𝜎𝑃𝑂𝐼𝐿 = ∑ 𝜎𝑃𝑂𝐼𝐿𝑖 , 𝑞 𝑖=1 𝜎𝐺𝐷𝑃 = ∑ 𝜎𝐺𝐷𝑃𝑖 ,𝑟 𝑖=1 𝜎𝐸𝐶 ∑ 𝜎𝐸𝐶𝑖 𝑠 𝑖=1 , 𝜎𝐴𝐺𝑅𝐼 ∑ 𝜎𝐴𝐺𝑅𝐼𝑖 𝑢 𝑖=1 . after that, we calculate long-term integrating parameters of all variables as follows: 𝛽𝑃𝑂𝐼𝐿∗ = 𝛽𝑃𝑂𝐼𝐿 𝜌 , 𝛽𝐺𝐷𝑃∗ = 𝛽𝐺𝐷𝑃 𝜌 , 𝛽𝐺𝐷𝑃∗ = 𝛽𝐸𝐶 𝜌 , 𝛽𝐸𝐶∗ = 𝛽𝐸𝐶 𝜌 , 𝛽𝐴𝐺𝑅𝐼∗ =𝛽𝐴𝐺𝑅𝐼 𝜌 , furthermore, the cumulative short-run variables and longterm co integrating variables are calculated using the delta technique. the error correction coefficient should be significantly negative. the wald test is used, which asymptomatically reflects the chi-squared distribution, to statistically evaluate the long-run and short-run asymmetric and nonlinear impacts of palm oil prices on carbon emission. the wald test is used to investigate the alternative and null hypothesis for the following long-run and short-run parameters ∅*, β*, ω*, and ρ*. 𝐻0 ∅ = 𝐹∅∗ (𝜏) = 𝑓 𝑣𝑒𝑟𝑠𝑒𝑠 𝐻1 ∅ ∶ 𝐹 ∅∗ (𝜏) ≠ 𝑓 𝐻0 ∅ = 𝑆𝜔∗ (𝜏) = 𝑠 𝑣𝑒𝑟𝑠𝑒𝑠 𝐻1 ∅ ∶ 𝑆 𝜔∗ (𝜏) ≠ 𝑠 𝐻0 ∅ = 𝑆𝛽𝑖∗ (𝜏) = 𝑠 𝑣𝑒𝑟𝑠𝑒𝑠 𝐻1 ∅ ∶ 𝑆 𝛽𝑖∗ (𝜏) ≠ 𝑠 𝐻0 ∅ = 𝑆𝜌𝑖∗ (𝜏) = 𝑠 𝑣𝑒𝑟𝑠𝑒𝑠 𝐻1 ∅ ∶ 𝑆 𝜌𝑖∗ (𝜏) ≠ 𝑠 where f and f are pre-defined matrices h*l and h*ps. s and s are h*l and h*s, representing a pre-specified matrix with "h" representing the limitations number (cho et al., 2015) and i representing poil, gdp, ec, and agri, respectively. we investigate non-linearities in the long-run integration parameter and speed of adjustment parameter using the wald test. we perform 4 tests for every parameter and group. 2.3 empirical analysis and discussions to begin the empirical analysis, table 2 provides descriptive statistics for the co2, poil, gdp, ec, and agri series. with the most significant mean and standard deviation, the variability of poil is the greatest. in contrast, the gdp has the lowest mean and standard deviation and, hence, the lowest variability among all series. the jarque-bera test statistics reveal a considerable deviation of the data from the variables' normal distribution. this indicates that all variables have a sign of non-linearity between them; hence, the qardl approach is applicable in this circumstance. table 2: descriptive statistics variables mean min max std. dev. j-b stats co2 352137.2 148540 619840 127108 1.1456*** poil 12428155 721172 42869845 12532500 6.5170*** gdp 5.00011 1.5811 1.0712 2.7811 4.1165*** ec 631.32 379.52 880.81 168.08 3.105*** agri 16.853 12.712 24.452 3.947 5.0767*** note ***=p<0.05. before estimating the qardl model, the integration order of the time series data is evaluated using a unit root test. the results of the standard adf and zivot and andrews (2000) tests are reported in table 3. table 3: adf and za results variables adf adf (delta) za break year za (delta) break year co2 -2.245 -3.125*** -1.313 1995 q3 -5.028*** 1989 q1 poil -1.255 -2.163*** -1.981 1999 q1 -3.032*** 1995 q4 gdp -2.424 -3.497*** -1.219 2000 q4 -5.099*** 2002 q1 ec -1.355 -2.131*** -1.244 2004 q3 -4.932*** 2005 q1 agri -2.516 -3.422*** -2.664 2011 q1 -3.204*** 2018 q4 the table provides the statistical values of the za and adf test. and ***=p<0.05 agbioforum, 24(1), 2022 | 198 nurhayati, asmanizar, aziz, ekasari and beddu. — analysis of agronomy and environmental impacts of palm oil production… according to the results of both unit root tests, the order of variable integration is 1. the variables further enhance the application appropriateness of the qardl model. table 4 displays the results of the qardl estimation in the short run and the long run, employing parameters with quantile values ranging from lower to higher. findings reveal that the projected adjustment speed coefficient is negative and statistically significant over the long term. more specifically, except for the 0.95th, the values of p are significant from 0.50 quantile through higher quantiles. this finding demonstrated the presence of long-term equilibrium reversal between the variables co2, poil, gdp, ec, and agri. in addition, table 3 reveals that poil has a substantial and favorable impact on co2 emissions in the indonesian economy over the study period. however, the effect of poil on co2 fluctuated and was determined to be positive between the quantiles of 0.05 and 0.70. specifically, the estimated influence of poil on co2 is more significant for lower-order quantiles than for quantiles of medium order. carbon emissions from the palm oil business fall into two categories: emissions from deforestation and emissions from palm oil processing. deforestation reduces carbon reserves by reducing biomass. additionally, it releases carbon dioxide from disturbed soils. in addition, reducing carbon inputs from plants and modifying hydrologic cycles affects future carbon sequestration in the environment (fargione et al., 2008). palm oil extraction necessitates using fossil fuels for industrial processing, inorganic fertilizers, the transport of goods, and automated plantation equipment. during the processing of palm oil mill waste, large quantities of methane, a potent greenhouse gas, are produced. according to chase et al. (2010), the second and third most significant sources of greenhouse gas emissions for palm oil production are methane emission from mill effluent and nitrous oxide from fertilizer, respectively. the results are consistent with (petrenko et al., 2016) and (chase et al., 2010) but in stark contrast to (khalid et al., 2021), who discovered that an increase in palm oil production is connected with a decrease in co2 emissions. second, the qardl long-run estimation results reveal that gdp exerts a significant and positive influence on co2 across the entire range of quantiles, i.e., across all quantiles (0.050.95). the use of varied energy sources, including fossil fuels, is necessary for transporting and manufacturing a wide range of goods and services, which helps economic growth. in this regard, more economic growth includes increasing energy consumption, particularly from conventional and nonrenewable sources, exacerbating environmental issues. more economic expansion results in increased energy consumption, mainly from traditional and nonrenewable sources, exacerbating environmental issues. table 4 demonstrates the relationship between ec and co2 emissions across all quantile ranges. ec is significantly and negatively connected with carbon emissions in the indonesian economy, except for the 0.95th order quantile, where a highly significant association is shown. the conclusion is supported by the fact that, like other developing nations, indonesia is dependent on fossil energy consumption (sasana et al., 2018), and the use of fossil energy is the primary cause of co2 emissions in the country. in this regard, the findings of (hwang et al., 2014; sasana et al., 2018; shahbaz et al., 2013), for indonesia (khan et al., 2019) for pakistan, and (gu et al., 2019) for china corroborate our conclusion that energy consumption has a significant impact on co2 emission. and finally, the effect of agri on co2 emission is also presented in table 4 over the whole quantile range. except for the 0.4 quantiles, the impact of agri on co2 emissions is considerable and positive at all quantiles. this effect is a result of increased agricultural production raising demand for combustible energy sources, which results in the release of emissions into the atmosphere. agriculture uses fossil fuels for processes such as water pumping, packing, and transporting agricultural products, which increases co2 emissions. additionally, certain agricultural operations, such as fermentation in ruminant animals and biomass fuel combustion, may explain how agricultural value addition influences co2 emissions. our conclusion is substantially supported by the research of (karimi alavijeh et al., 2022), (eyuboglu et al., 2020), (adedoyin et al., 2021), and (yurtkuran, 2021). in addition, the results of the short-term evaluation are presented in table 4, and it is seen that the primary cause of present and lag co2 values is lag co2 values. therefore, indonesia's co2 emissions contribute to recent changes in co2 concentration. in addition, preceding and lagging poil values apply enormous pressure on indonesia to increase its presence and lagging co2 levels. the results below the 0.60, 0.80, and 0.90 quantiles are statistically significant, and this effect is evident from the middle to the upper quantiles. in addition, it is known that preceding and lagging gdp numbers are a leading predictor of growing co2 concentrations. last but not least, it is observed that, similar to the long-term estimate, previous and lagging ec scores contribute to environmental pollution growth. nonetheless, the variable agri produces insignificant results when projecting co2 based on its historical and lagged values. following the execution of qardl, the wald test is used to assess all variables and their associated associations for asymmetries. despite the absence of an accurate asymptotic probability, this test may disclose the uncertainty of all parameters, including intercepts, in the short and long runs. in addition, whether a structural break is known or not, this test can help identify it. the results are symmetrical, given that the dependent variable, co2, is statistically significant. table 5 displays the outcomes overall. agbioforum, 24(1), 2022 | 199 nurhayati, asmanizar, aziz, ekasari and beddu. — analysis of agronomy and environmental impacts of palm oil production… table 4: co2 emission qardl estimations quintiles constant error correction model long run findings short run findings (τ) α∗(τ) ρ∗(τ) βpoil(τ) βgdp(τ) βec(τ) βagri(τ) φ1(τ) ω0(τ) λ0(τ) θ0(τ) έ0(τ) 0.05 0.035 -0.432*** 0.032*** 0.455*** 0.331*** 0.159*** 0.143*** 0.312** 0.138*** 0.567*** 0.049 (0.055) (-4.341) (2.801) (3.234) (3.348) (2.421) (3.521) (2.242) (2.735) (4.315) (0.044) 0.1 0.056 -0.324*** 0.440*** 0.438*** 0.223*** 0.156*** 0.215*** 0.313** 0.349*** 0.361** 0.456 (0.044) (-2.786) (2.332) (2.592) (3.456) (3.432) (2.612) (2.423) (2.146) (2.428) (0.375) 0.2 0.033 -0.351*** 0.408*** 0.498*** 0.367*** 0.275*** 0.124*** 0.233** 0.435*** 0.854*** 0.222 (0.036) (-3.087) (3.382) (4.985) (2.697) (3.143) (2.913) (2.463) (2.457) (2.025) (0.099) 0.3 0.014 -0.341*** 0.361** 1.372*** 0.234*** 0.225*** 0.340*** 0.333** 0.284*** 0.114*** 0.560 (0.017) (-3.093) (2.485) (2.380) (3.099) (4.413) (4.343) (2.343) (2.073) (3.031) (0.078) 0.4 0.040 -0.135*** 0.313** 0.488* 0.137*** 0.244 0.243*** 0.153** 0.253*** 0.442*** 0.093 (0.069) (-2.426) (2.451) (3.362) (4.454) (0.049) (3.349) (3.435) (3.452) (3.424) (1.356) 0.5 0.028 -0.284*** 0.922** 0.276** 0.254** 0.354*** 0.234*** 0.149** 0.504*** 0.431** 0.489 (0.070) (-2.433) (4.094) (2.992) (2.432) (3.546) (3.285) (2.628) (3.345) (2.445) (0.035) 0.6 0.055 -0.138*** 0.384** 0.654** 0.164*** 0.143** 0.154*** 0.253** 0.240*** 0.435*** 0.265 (0.059) (-3.263) (3.299) (3.433) (2.313) (2.033) (2.343) (2.294) (3.448) (2.340) (0.301) 0.7 0.091 -0.273*** 0.284** 0.532*** 0.456*** 0.233*** 0.130*** 0.459** 0.453*** 0.363*** 0.308 (0.058) (-3.453) (3.345) (3.987) (2.259) (2.545) (3.424) (4.926) (3.432) (2.345) (0.028) 0.8 0.011 -0.545** 0.498 0.420*** 0.141*** 0.121*** 0.167*** 0.485*** 0.254*** 0.476*** 0.821 (0.003) (-4.333) (0.119) (3.775) (2.340) (2.235) (3.567) (3.467) (4.147) (3.478) (0.027) 0.9 0.039 -0.254** 0.124 0.245*** 0.647*** 0.341*** 0.027*** 0.354*** 0.256*** 0.244*** 0.6784 (0.005) (-2.487) (0.580) (3.990) (3.344) (3.133) (4.341) (4.704) (3.356) (3.432) (0.067) 0.95 0.029 -0.026 0.097 0.419*** 0.0136 0.354*** 0.347*** 0.357*** 0.343*** 0.451*** 0.656 (0.007) (-0.114) (0.283) (3.752) (0.0987) (3.349) (2.341) (2.494) (2.415) (2.453) (1.049) author calculations agbioforum, 24(1), 2022 | 200 nurhayati, asmanizar, aziz, ekasari and beddu. — analysis of agronomy and environmental impacts of palm oil production… table 5: wald test results series wald-stat [prob-value] ρ 5.345*** [0.000] βpoil 7.929*** [0.000] βgdp 8.512*** [0.000] βec 3.777*** [0.000] βagri 9.112*** [0.000] φ1 2.022*** [0.004] ω0 8.416*** [0.000] λ0 13.400*** [0.000] θ0 1.987*** [0.000] ƿ1 14.321*** [0.000] ∂0 9.128*** [0.000] table 5 presents the results of the wald test in quantiles for the research series. it is discovered that the variables in every model have a bidirectional causal relationship for all quantiles from 0.05 to 0.95. it is noteworthy that the causality is constant across all quantiles. table 6: quantile granger causality test quantiles δco2t ↓ δpoilt δpoilt ↓ δco2t δco2t ↓ δgdpt δgdpt ↓ δco2t δco2t ↓ δect δect ↓ δco2t δco2t ↓ δagrit δagrit ↓ δco2t δanst ↓ δinft [0.05-0.95] 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.05 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.10 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.20 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.30 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.40 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.50 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.60 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.70 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.80 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.90 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.95 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 source: authors estimation 3. conclusion and policy implications palm oil plantations negatively influence natural resources, climate change, and biodiversity. every information readily available points to significant carbon losses, dangers to rare and endangered species, and water and air pollution (dadi, 2021). most indigenous indonesians do not gain from palm oil extraction; they suffer immensely. in addition to the loss of people's rights to their ancestral lands and the destruction of the natural resources they rely on for survival, chemical pollution and fires pose significant health risks. keeping these factors in mind, this study aims to evaluate the impact of agronomy and palm oil output on co2 emissions in indonesia over the 1990-2020 timeframe, adjusting for agricultural productivity, energy consumption, and economic growth. the qardl approach of (cho et al., 2015) is utilized since it is highly advantageous to determine if the range of quantiles for palm oil, economic growth, agriculture production, and energy consumption during the study period affects carbon emission. utilizing the grangercausality test, this study also considers the quantiles causality. the qardl estimation results confirmed that the error correction estimator value is statistically significant and has the expected quantile coefficient. it explains why long-term correlations between palm oil production, economic growth, energy consumption, agricultural production, and co2 emissions in indonesia are weakening. long-term palm oil production, energy consumption, economic growth, and agriculture production all have a beneficial impact on co2 emissions; however, the relative importance of each variable varies within quantile ranges. the short-term findings of the qardl are comparable to those of the long-term, except for agricultural production, which has a negligible impact on co2 emissions in the short term. according to the granger causality test results and the wald test, bidirectional causality exists between variables at all quantiles. the results apply to policy recommendations. as the global demand for palm oil is likely to expand, it is crucial to address the industry's harmful effects on society and the agbioforum, 24(1), 2022 | 201 nurhayati, asmanizar, aziz, ekasari and beddu. — analysis of agronomy and environmental impacts of palm oil production… environment. it suggests that a consistent and strategic direction must support decisions made in the palm oil business for government decisions. while steps can be taken to conserve some species, delaying or halting tropical deforestation in indonesia is the most efficient strategy to prevent both reductions of biodiversity and loss of carbon. many other green activities tied to palm oil production must be precisely calculated and reported. suppose indonesia wishes to continue the long-term expansion of the palm oil sector. in that case, it must increase the sustainability of production activities in light of the global shift toward more ecologically friendly and sustainable alternatives to oil palm products. creating and sustaining environmental standards is vital for successfully managing the sustainable expansion of the palm oil sector. in determining the prospective impact of new development, third-party organizations must be consulted, and the environmental implications of novel development should be thoroughly examined. references abram, n. k., meijaard, e., wilson, k. a., et al. 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(2021). the effect of agriculture, renewable energy production, and globalization on co2 emissions in turkey: a bootstrap ardl approach. renewable energy, 171, 1236-1245. doi: https://doi.org/10.1016/j.renene.2021.03.009 https://doi.org/10.1088/1755-1315/122/1/012008 https://hdl.handle.net/10535/5256 https://doi.org/10.1016/j.egypro.2015.01.054 https://www.thaiscience.info/journals/article/jose/10970636.pdf https://www.thaiscience.info/journals/article/jose/10970636.pdf https://doi.org/10.1080/1331677x.2021.1997627 http://dx.doi.org/10.11118/actaun201563041365 https://doi.org/10.3390/su12125077 https://doi.org/10.1371/journal.pone.0159668 https://doi.org/10.3390/en13123248 https://doi.org/10.1088/1748-9326/abce83 https://doi.org/10.1088/1748-9326/abce83 https://doi.org/10.1016/j.renene.2021.03.009 agbioforum, 24(3): 34-42. ©2022 agbioforum physical appearance antioxidant effect alpha-amylase inhibition and alpha-glucosidase of carissa carandas products monruthai srithongkerd tropical agriculture program, faculty of agriculture, kasetsart university, bangkok, 10900, thailand email: monruthai.sr@ku.th amorn owatworakit microbial product and innovation research group, mae fah luang university, chiang rai, 57100, thailand school of science, mae fah luang university, chiang rai, 57100, thailand email: amorn@mfu.ac.th nongnuch siriwong department of home economics, faculty of agriculture, kasetsart university, bangkok, 10900, thailand email: nongnuch.si@ku.th this research aimed to examine tea production from the leaves and fruit of the karanda (carissa carandas) at different stages of development. the antioxidant activity of carissa carandas leaves was determined by their total phenolic content, antioxidant capacity dpph (2,2-diphenyl-1-picrylhydrazyl), and ferric-reducing capacity (frap). the experiment results were freeze-dried and ground into a powder. young tea leaves had more antioxidants than older ones. antioxidant capacity dpph and ferric reduction ability were greater in carissa carandas juice powder than in carissa carandas powder. the amount of water extracted is greater. using carissa carandas powder, the leftover portion was substituted for tea leaves at weights of 0, 5, 10, 15, and 20 %. color, total acid content, and total anthocyanin content were measured. the tea was a deeper shade of crimson. substituting 20% of the fruit pulp for the carissa carandas resulted in the greatest increase in redness and total acid content, including the total amount of anthocyanin. superior to all other formulations to increase the total phenolic content, carissa carandas development should be blended amongst the leaf portions. in sensory characteristics testing, it was determined that the highest acceptable substitution level on the 9-point hedonic scale test was the 10% substitution level, with scores on appearance, color, odor, taste, texture, and preference that were distinct from those of other samples: 8.56, 8.89, 8.43, 8.21, 8.76, and 8.38. key words: carissa carandas, karanda, antioxidant, alphaamylase, alpha-glucosidase. 1. introduction most individuals now prioritize herbal tea use as a kind of health treatment. in addition, thais have long consumed herbal tea to quench their thirst. pohl et al. (2016) found that because each herbal tea includes a unique combination of chemicals in varying concentrations, it has several favorable effects on the body. thus, regular consumption of herbal teas can promote health. herbal teas are often brewed with hot water, herbs, fruits, seeds, or roots. certain variants contain less antioxidants than teas brewed from tea leaves, but it is caffeine-, sugar-, and calorie-free and is available in various flavors. certain teas have special qualities, such as antioxidant benefits. moreover, it possesses anti-alpha glucosidase enzyme activity, which reduces blood sugar levels and promotes health (hidayati et al., 2015). most herbal teas are caffeine-free, making them acceptable for the elderly and caffeine-sensitive individuals. in addition, herbal teas possess therapeutic effects, such as nerve stimulation. in addition to reducing cholesterol (münstedt et al., 2009), anti-diabetes, high blood pressure, and cancer, antioxidants for the circulatory system can aid the digestive tract. the excretory system is typically functioning, and herbal tea aids in clearing the fat that attaches to the intestines and promoting heart health (duygu et al., 2008). as a result, most people use herbal tea frequently. carissa carandas is a native thai fruit. the scientific name for this plant is carissa carandas linn. it belongs to the apocynaceae family (aman et al., 2014). it is a family of berries. there are numerous thai names, including manao ho, thorn khee haad, and thorn daeng. the trunk is a tall, thorny shrub with white rubber on the fruit and leaves. the flowers are white and fragrant, forming a bouquet on the leaf axils. towards the tip, it bears a little oval form. the fruit progressively transforms from white to pink, red, and dark purple when it ripens. the fruit's seeds are flat and arranged along its length. the leaves are singular, oval-shaped, and endowed with a small concavity. the leaf base is concave in the direction of the petiole. the back and abdomen are smooth, and the hue of the young leaves is pale red-green. dark green mature leaves, thick leaves, and short petioles have a sour and astringent taste (joshi et al., 2018), gradually decreasing as the fruit ripens and containing more anthocyanin. the investigation of medicinal properties in pharmacological activities determined that mature fruit contained 1,022.9 mg ascorbic acid/100 ml juice (arif et al., 2016) along with total phenolic content 111.6 mg gallic acid/100 g sample and total anthocyanin content 472.4 mg cyaniding-3-glucoside. the extraction of carissa carandas fruit with chloroform and water yielded phenolic and flavone components. therefore, dpph, superoxides, hydroxyl, hydrogen peroxide, and abts radicals are neutralized to the greatest extent. it can also mailto:monruthai.sr@ku.th mailto:amorn@mfu.ac.th mailto:nongnuch.si@ku.th agbioforum, 24(3), 2022 | 35 srithongkerd, owatworakit, and siriwong. — physical appearance antioxidant effect alpha-amylase inhibition and alpha-glucosidase… absorb iron ions. carissa carandas can be exploited as a highly effective antioxidant source in the health food sector, as is evident (verma et al., 2015). it affected ovarian cancer, caov-3 cancer, and lung cancer cells. by extracting from three sections, namely leaf, raw fruit, and ripe fruit, it was discovered that chloroform-extracted leaf could effectively suppress the activity of caov-3 cancer cells (amaranath et al., 2021). carandinol, a triterpene, was also discovered in the leaves of the carissa carandas tree. (cytotoxicity) immunomodulatory, anti-glycation (antiglycation), and antioxidant properties. in addition, the capacity to suppress enzyme activity in sterile conditions. this chemical was cytotoxic to all cancer cell types examined, including hela, pc-3, and 3t3. it is highly effective against cervical cancer cells (hela). diabetes is a disease resulting from endocrine dysfunction. abnormalities in the metabolism of carbs, fat, and lipoprotein not only result in excessively elevated blood sugar levels. nevertheless, also result in numerous problems, including hyperlipidemia, a disorder characterized by elevated insulin levels, high blood pressure, and atherosclerosis. according to ancient medical texts, carissa carandases possess anti-diabetic effects. hence, an investigation into fruit extracts was done. it was discovered that extracts with methanol and ethyl acetate at 400 mg/kg could reduce blood glucose by 48 and 64.5%, respectively, compared to modern anti-diabetic medications. hence, carissa carandases have the potential to be employed as antidiabetes medications (rao dasari et al., 2020). this study aims to identify physical traits. for instance, the antioxidant effect of alpha-amylase inhibition and alphaglucosidase of carissa carandas goods obtained from creating carissa carandas leaf tea and carissa carandas at the ripe stage with the features of good color and flavor for customer information—entrepreneurs in the food and health supplement industries those who study the use of therapeutic plants in food. 2. materials and methods 1.1 sample collection and sample preparation obtain a leaf sample from the carissa carandas. beginning in july 2020 in the "tha maka district kanchanaburi" by gathering leaves at various distances and locations: 1) young leaves are harvested from the top of an apical leaf, which consists of one stem with two to three young leaves, 7 to 10 days after budding. 2) the middle leaf is obtained between the fifth pair of leaves from the top down that is neither too old nor too young. gather two leaves. the age of the leaf 14 to 16 days after the shoot. 3) old leaves gathered from the next pair of 6-7 leaves, arranged in threes, aged 21-25 days from the shoot's emergence. in august 2020, samples of carissa carandas fruit were collected from trees in don cha-em subdistrict, tha maka district, kanchanaburi province, by assembling all ripe dark purple fruits. after assembly, they are cleaned promptly. example preparation of carissa carandas leaf tea brings carissa carandas leaves to be washed and cleaned with running tap water and pick out leaves of inferior quality. then, immerse the leaves in tap water with 10 ppm chlorine for 10 minutes, rinse with running tap water for 5 minutes, drain, and cut into 0.5 cm width slices. removed stems are utilized to produce tea leaves. 1.2 preparation of tea by the method of making green tea (green tea) non-fermented tea was made by heating carissa carandas leaves for two minutes to deactivate the enzyme polyphenol oxidase found in fresh carissa carandas leaves. to prevent ppo from catalyzing the oxidation and polymerization of polyphenols in the leaves of carissa carandas. then, knead (rolling) the dough to break the cells. dry in an oven at 60 degrees celsius with hot air for one hour. the tea will be green to yellowish green in hue. and the ultimate moisture level is less than 10%. using a herb blender, thoroughly combine the tea leaves. and they are stored in a foil bag at -20 degrees celsius till analysis. samples of carissa carandas powder are prepared from overripe fruits. takes carissa carandas, washes them with running water, and sorts out old and imperfect fruit. the pulp was then placed in tap water containing ten parts per million of chlorine, steeped for ten minutes, rinsed with running tap water for an additional five minutes, drained, and extracted using a pulp extractor. panasonic model mjdj01s, freeze-dry all portions and finally combine using a herbal blender. the extracted water portion is known as extract, whereas the waste portion is known as residue. before analysis, carissa carandas' powder is stored in aluminum foil packets at -20 degrees celsius. carissa carandas mixing combine the chosen carissa carandas leaves with the dehydrated and powdered carissa carandas fruits. replace the tea leaves with extract and residual powder of carissa carandas at 0, 5, 10, 15, and 20 percent by weight, package in aluminum foil bags, and store at -20 °c until analysis. 1.3 quality testing of tea leaves and carissa carandas powder color measurement measure the color of tea powder in the part of the tea leaves. carissa carandas powder and the mixed part with a minolta colorimeter, cr 400 japan in the cie system, l* a* b* values are reported as l* illuminance values, ranging from 0 (black) to 100 (white) +a* (hugeness). red) -a* (greenish) +b* (yellowish) -b* (blueish) 1.4 extract preparation tea made from crushed carissa carandas leaves, carissa carandas powder extract, and residue carissa carandas, all five formulas (0, 5, 10, 15, and 20% by weight) were extracted by weighing 10 g dry samples. 90 cc of 40% water mixed with ethanol was used to soak 10 grams of prototypes for 1 day. the samples were run through agbioforum, 24(3), 2022 | 36 srithongkerd, owatworakit, and siriwong. — physical appearance antioxidant effect alpha-amylase inhibition and alpha-glucosidase… whatman no. 4 filter sheets for filtration. 1.5 determination of total phenolic content using the folin-ciocateau assay, the authors of sánchezrangel et al. (2013) determined "the content of the reducing component." initially, 0.75 ml of the 10-fold diluted folin-ciocateau reagent and 100 ul of the ethanolic extract were added to a test tube. the mixture was left at room temperature for five minutes after mixing. then, 0.75 ml of 6% (w/v) sodium carbonate solution was added." after homogenization, the mixture was allowed to rest for 90 minutes at room temperature. at 725 nm, a spectrophotometer determined the total phenolic content. ascorbic acid was utilized to plot the standard calibration curve at a concentration range of 0.02 to 0.1 mg/ml. the equivalent gallic acid (gae) mg/g represents the total phenolic content." 1.6 antioxidant activity test free radicalscavenging assay with dpph as reported previously, the antioxidant activity was performed with a few modest modifications. this was accomplished by using the 1,1-diphenyl-2-picrylhydrazyl (dpph) radical. a test tube containing 900 ul of dpph in methanol solution (150 um) was combined with 100 ul of each extract and vigorously shaken. following a 15minute incubation period at room temperature in total darkness, the absorbance of each solution was measured at 517 nm. the ascorbic acid equivalent was employed to quantify the antioxidant activity." 1.7 analysis of ferric acid reducing ability ferric reducing antioxidant potential (frap) according to the protocol by suktham et al. (2019), the frap assay was conducted. 2.25 ml of freshly prepared frap reagent was added to a test tube along with 75 ul of sample and 225 ul of distilled water. the mixture was utilized for the reaction at room temperature. the absorbance at 596 nm was measured with a spectrophotometer immediately after mixing and 30 minutes later. the antioxidant potential of the samples was determined using a calibration curve generated with feso4.7h2o at concentrations ranging from 400 to 2,000 um. 1.8 total anthocyanin content assay "total anthocyanin content" was measured by "the phdifferential spectrophotometric method. each sample was diluted with potassium chloride (0.025 m) at ph 1.0 and sodium acetate (0.4 m) at ph 4.5. they were allowed to equilibrate for 15 min before detection by spectrophotometer. the absorbance was measured at 520 nm and 700 nm". "the difference in the absorbance at differing ph values and wavelengths was calculated" as follows: a = (a520nm – a700nm) ph1.0 – (a520nm – a700nm) ph4.5 the concentration of total anthocyanin pigment was calculated as follows: total anthocyanin content (mg/ml) = (a x mw x df x 1000) / ε x 1 furthermore, "where mw is the molecular weight, df is the dilution factor, ε is the molar absorptivity, and 1 is for 1 cm path length. the molecular weight (mw = 449.2 g mol-l) and the molar absorptivity (ε = 26,900 lcm-1moll) of cyanidin-3-glucoside were used." 1.9 inhibition assay for -glucosidase activity α-glucosidase inhibition assay accordingly, "appropriate dilutions of the extracts (0-200 µl) and 100 µl of α-glucosidase (ec 3.2.1.20) (0.5 mg/ml) in 0.1m phosphate buffer (ph 6.9) solution were incubated at 25°c for 10 min. then, 50 µl of 5 mm pnitrophenyl-α-d-glucopyranoside in 0.1 m phosphate buffer (ph 6.9) solution was added. the mixtures were incubated at 25°c for 5 min before the absorbance was read at 450 nm in the spectrophotometer (29). the reference sample included all other reagents and the enzyme except the test sample. the α-glucosidase inhibitory activity was expressed as percentage inhibition." inhibition (%) = [(absref abssample)/absref] × 100 1.10 inhibition assay for -amylase activity appropriate dilutions (0-200 l) of the extracts and 500 l of 0.02m sodium phosphate buffer (ph 6.9 with 0.006m nacl) containing porcine pancreatic -amylase (ec 3.2.1.1) (0.5 mg/ml) were incubated for 10 minutes at 25°c. then, 500 l of a 1% starch solution in a sodium phosphate buffer of 0.02 m is added. after 10 minutes of incubation at 25°c, 1.0 ml of dinitro salicylic acid (dnsa) was added to the reaction mixture. the reaction was then stopped by incubation in a bath of boiling water for 5 minutes, then cooling to room temperature. the reaction mixture was then diluted with 10 ml of distilled water, and absorbance at 540 nm was determined using a spectrophotometer (28). "except for the test sample, the reference sample contained all other reagents and the enzyme." the percentage of inhibition was used to express the -amylase inhibitory activity. absref = absorbance of the reference; abssample = absorbance of the test sample. 3. experimental design and statistical analysis the crd experiment was designed with three levels of leaf senescence, obtained using the green tea technique as the sole study component. then assess the quality based on the color value information derived from antioxidant properties. using a pre-packaged application, the variance and difference of means were analyzed (duncan multiple range test method). the crd experimental design was utilized to investigate the preparation of freeze-dried carissa carandas fruit powder. one study factor consisted of two extraction levels based on the color data: extracted and residue. the variance and mean differences were analyzed (duncan multiple range test method) using a pre-packaged program for antioxidant characteristics. agbioforum, 24(3), 2022 | 37 srithongkerd, owatworakit, and siriwong. — physical appearance antioxidant effect alpha-amylase inhibition and alpha-glucosidase… examine the proportion of organic tea leaves to carissa carandas powder. planned for the crd experiment were a single variable, the leaf-to-fruit ratio—five substitution levels with weight percentages of 0, 5, 10, 15, and 20 percent. select from the data on color values. the variance and difference of means were examined (duncan multiple range test method) using a pre-packaged application to determine antioxidant qualities. 4. results effects of preparation of carissa carandas leaves on physical and chemical characteristics of tea leaves. however, in every table of results, "data were presented as mean ±, standard deviation (s.d.), and different superscripts within a column significantly different (p<0.05)." the statistical analysis found that the %yield %moisture, and water activity of the carissa carandas leave with different maturity levels. the different preparation methods resulted in the results shown in table 1. the combined effect of the preparation and maturity of the carissa carandas leaves on the color values was statistically significant (p<0.05), as follows: table 2 also affects the number of phenolic compounds. and the antioxidant capacity, as shown in table 3, respectively. table 1: % yield %moisture and water activity of karanda leaf tea prepared by green tea making method leaf stage %yield %moisturens water activity leaflet 15.13±0.25b 3.68±0.16 0.44±0.04b middle leaf 15.17±0.46ab 3.70±0.12 0.51±0.03a basal leaf 16.20±0.20a 3.59±0.13 0.47±0.04ab table 2: effect of leaf stage and color measurement (cie l* a* b*) of karanda leaf tea prepared by green tea making method. leaf stage l* a* b* leaflet 40.41±0.37c 1.36±0.37a 5.45±0.28c middle leaf 46.51±0.34b -2.76±0.29b 13.74±0.16a basal leaf 48.40±0.67a -3.63±0.06c 12.64±0.25b various maturation phases of carissa caranda leaves can impart distinct hues to the tea. young-leaf tea is a reddishbrown color. the tea is prepared from mature and middleaged leaves. it will be green-yellow. tea from mature leaves was darker than from young or intermediate leaves. the colorimeter results indicated that the l* and lightness values of tea prepared from young leaves were light. the yellowness b* was lower, while the redness a* was greater than in previous phases. the results indicated that the color of carissa carandas leaves depends on the kind and quantity of pigment. particularly chlorophyll, which is a vital component of the leaves of carissa carandas. the chlorophyll concentration is greatest in mature leaves and declines in wilted leaves (yu et al., 2019). young and middle leaves moreover, when chlorophyll is heated, it transforms into pheophytin, causing the leaf color to become a dark green or olive green (zhang et al., 2019). table 3: effect of leaf stage and tea production methods towards total phenolic content and antioxidant activity leaf stage total phenolic content (mg gae/g dry sample) dpph (mg aae/g) frap (umolfeso4/g) leaflet 29.73±0.67c 65.04±0.49c 343.82±1.15c middle leaf 52.19±0.54b 70.67±0.47b 374.94±2.56b basal leaf 55.69±0.21a 80.19±0.91a 402.30±0.69a quantities and types of phenolic chemicals in carissa carandas leaves depend on leaf age and development, leaf location, collection time, and growing season (hegde et al., 2010). in addition, the processing procedure altered the kind and number of active components, which directly affected the antioxidant activity of phenolic compounds extracted from tea leaves. the key chemicals in carissa carandas leaves are flavonoid molecules with antioxidant properties. table 3 demonstrates that tea made from leaflet leaves contained fewer total phenylic chemicals than tea manufactured from middle and basal leaves. dpph antioxidant and ferric acid reducing capacity. it also depends on the tea's ingredient type and overall phenolic content. tea leaves made from mature leaves had more antioxidant capacity, dpph, and ferric acid-reducing capacity than those made from medium and young leaves due to the accumulation of nutrients and minerals in mature leaves. then tea leaves with higher chlorophyll and phenolic component contents. consequently, in carissa carandas, mature leaves are chosen as the tea's constituents. • along with carissa carandas leaves, prepare carissa carandas powder as a basic material for preparing tea. carandas of carissa that are ripe has been prepared. the pulp and water of the dark purple fruits were freeze-dried after extraction. the yield percentage, moisture content, and water activity were examined according to table 4. table 4: % yield %moisture and water activity of caranda powder karanda powder %yield %moisture water activity extract 8.07±0.05b 10.53±0.78a 0.57±0.01a residue 9.57±0.05a 4.36±0.34b 0.16±0.01b the pulp was extracted by centrifuging and pressing off the juice, yielding two extracts: extract and residue. the investigation revealed that the %yield of residue was agbioforum, 24(3), 2022 | 38 srithongkerd, owatworakit, and siriwong. — physical appearance antioxidant effect alpha-amylase inhibition and alpha-glucosidase… greater than that of extract because residue consisted of fruit pulp, peel, and seed, which comprised pulp. thus, coarser fibers are a component of cellulose and hemicellulose and plant cell walls. thus, there is less moisture than in the fruit extract, which contains water and a fine texture. as anything undergoes freeze-drying, its weight decreases. in addition, the two ways of raw material processing resulted in distinct acid contents. the extract powder was more acidic. hence, it absorbs moisture faster, resulting in greater %moisture and water activity than residual samples (see table 5). table 5: color measurement (cie l* a* b*) of karanda powder karanda powder l* a*ns b* extract 6.80±0.46b 31.00±0.75 10.47±0.35b residue 8.67±0.55a 32.24±0.90 14.91±0.50a depending on the anthocyanin content of the fruit, the brightness of the karanda's power varies. depending on the quantity of the material detected, it produced a purple hue. the brightness of the extract was less than that of the residue. the experimental outcomes corresponded to table 6. the extract contained more anthocyanin than the residual. the redness was identical. table 6: total phenolic total anthocyanin content and antioxidant activity of karanda powder karanda powder total phenolic content (mg gae/g dry sample) total anthocyanin dpph (mg aae/g) frap (umolfeso4/g) ns extract 53.95±0.95b 16.92±0.23a 31.24±0.40b 9.55±0.48 residue 67.13±0.76a 12.85±0.80b 37.41±0.71a 8.52±0.38 according to table 6, the total phenolic content of residue was larger than that of extract because several fruit ingredients, such as rind, flesh, seed coat, and seed, caused the seeds to explode when blades crushed them. in addition, the release of phenolic compounds from the seeds resulted in the residue possessing a higher total phenolic content and dpph antioxidant capacity than the extract, which consisted primarily of water from meat. the two components were determined to be identical regarding their ability to decrease ferric acid. when examining antidiabetes activity by testing the inhibition of alpha-amylase and alpha-glucosidase enzymes, figures 1 and 2, it was discovered that carissa carandas extract from extract and residue at a concentration of 100 mg/ml in distilled water inhibited the enzyme activity by 98.70% and 82.53%, respectively. figure 1. alpha-amylase inhibition of karanda powder compared to the anti-diabetic medicine acarbose, the extract of ripe carissa carandas was more effective. at various doses, freeze-dried polysaccharides were able to suppress the activity of the alpha amylase enzyme. also, there is no concentration limit because carissa carandas powder is a medicinal herb that can be consumed safely. it can be consumed to reduce the digestion of glucose and starch. reduce the rate of glucose absorption. hence, the stomach and intestines can be employed as a food ingredient or consumed in another manner to reduce blood sugar levels. the experimental outcomes correspond to figure 2. both halves of the carissa carandas extract carissa carandas can block alpha-glucosidase. both types of enzymes exist in the human body. moreover, the stomach and small intestine can convert starch into individual sugar molecules. 100 98.70 82.53 47.93 40.25 22.82 27.86 0 20 40 60 80 100 120 acarbose 50 ug/ml extract residue al ph aa my las ei nh ibi tio n ( %) alpha amylase 100 mg/ml 50 mg/ml 25 mg/ml agbioforum, 24(3), 2022 | 39 srithongkerd, owatworakit, and siriwong. — physical appearance antioxidant effect alpha-amylase inhibition and alpha-glucosidase… moreover, several cells will absorb the sugar into the bloodstream. using carissa carandas extract to suppress the activity of both enzymes prevents the enzyme from binding to the substrate, including starch, resulting in an incomplete enzyme reaction. thus, it does not cause glucose and is the identical method by which anti-diabetic medications work. in contrast, the use of karanda powder involves the utilization of plant extracts. thus, the inhibitor's concentration and impact are not equivalent to the medications. as a result, it is more appropriate to consume to control and improve the body's immunity than to treat disease. figure 2. alpha-glucosidase inhibition of karanda powder it involves selecting karanda powder as an ingredient in tea alongside tea leaves. hence, the extracted portion is chosen due to its higher yield and lower moisture and water activity percentages. reduced moisture will help preserve the tea's quality. during storage, high humidity makes the product susceptible to deterioration by mold. in addition, residue has a greater total phenolic content and dpph antioxidant capacity than extract. both the leaves and the fruit of carissa carandas contain free radicals. the optimal ratio of tea leaves and freeze-dried powder on the physical and chemical properties of carissa carandas is determined by this study. mixing (formulate) (formulate) tea leaves from mature carissa carandas leaves and carissa carandas freezedried powder from fruit leftovers at five different ratios influenced %moisture and water activity values (table 7), as well as color quality (table 8). it was discovered that when the proportion of carissa carandas powder grew, the percentage of moisture and water activity increased, respectively. the ratio of leaves to fruits was 90:10 and 95:5. the levels of %moisture and water activity were identical to those of the control samples. while the 85:15 and 80:20 ratios had higher levels of %moisture than other samples, due to the very acidic nature of the carissa carandas fruit, it can absorb and retain moisture in the powder at all times. this causes the humidity to be higher than the carissa carandas' leaves. table 7: the ratio of leaf to the fruit of carissa carandas on the physical quality of ready-to-brew tea karanda leaf tea: karanda powder %moisture water activity ns 100: 0 3.59±0.13c 0.47±0.04 95: 5 3.68±0.15c 0.48±0.05 90: 10 3.72±0.23c 0.48±0.04 85: 15 4.15±0.26b 0.50±0.05 80: 20 4.57±0.25a 0.51±0.05 table 8: the ratio of carissa carandas leaf to carissa carandas fruit depends on the color quality of ready-to-brew tea powder karanda leaf tea: karanda powder l* a* b*ns 100: 0 48.40±0.67a -3.63±0.06e 12.64±0.25 95: 5 45.83±0.57b 1.58±0.22d 12.62±0.22 90: 10 42.42±0.36c 2.65±0.41c 12.66±0.32 85: 15 40.56±0.35d 3.73±0.17b 12.81±0.56 80: 20 39.41±0.37e 6.41±0.23a 12.90±0.11 100 50.86 30.22 24.17 14.38 10.62 8.55 0 20 40 60 80 100 120 acarbose 50 ug/ml extract residue al ph a g luc os ida se inh ibi tio n ( %) alpha glucosidase 100 mg/ml 50 mg/ml 25 mg/ml agbioforum, 24(3), 2022 | 40 srithongkerd, owatworakit, and siriwong. — physical appearance antioxidant effect alpha-amylase inhibition and alpha-glucosidase… from table 8, when the proportion of powdered carissa carandas led to a decrease in the tea's brightness. when the proportion of carissa carandas powder grew, so did the redness value. powdered carissa carandas are made from ripe fruit that has been dried using the free fresh process. in addition, heat does not destroy anthocyanin during the drying process, allowing the raw material to be ground into a powder with a permanent red hue. in addition, the increased amount of powder led to an increase in the concentration of anthocyanin (table 9), which played a crucial part in the red color of the blended tea. table 9: the ratio of leaves to the fruit of carissa carandas on the chemical quality of ready-to-brew tea karanda leaf tea: karanda powder total phenolic content (mg gae/g dry sample) total anthocyanin (mg/l) dpph (mg aae/g) frap (umolfeso4/g) 100: 0 55.76±0.06c 0.00±0.00e 80.35±0.47a 402.73±0.70a 95: 5 56.24±0.27c 2.72±0.50d 79.93±0.34a 384.53±4.96b 90: 10 57.62±0.44b 4.52±0.29c 77.43±0.38b 375.88±1.16c 85: 15 58.37±0.34a 6.44±0.39b 76.30±0.72c 372.18±0.60c 80: 20 58.41±0.52a 8.37±0.33a 69.47±0.36d 361.93±0.47d in blended tea, the weight ratio of tea leaves to carissa carandas fruit is 80:20. the ratios of total phenolic content and anthocyanin were greater than all others. both tea leaves and carissa carandas fruit contain a high concentration of essential chemicals. carissa carandas contains more anthocyanins in its ripe fruit than in its leaves. thus, the addition of carissa carandas powder from the ripe fruit section led to an increase in overall anthocyanin concentration. antioxidant capability dpph and the ability to reduce ferric acid found in the older leaves of the tea plant by decreasing the amount of carissa carandas leaves in the tea, the antioxidant capacity of dpph, and the ability of ferric acid are diminished. the outcomes are shown in table 10. table 10: the ratio of leaf to the fruit of carissa carandas on the physical and chemical quality of ready-to-brew tea karanda leaf tea: karanda powder % inhibition of alpha amylase enzyme % inhibition of alpha-glucosidase enzyme 100: 0 97.36±0.25a 51.03±0.77a 95: 5 96.11±1.18bc 50.39±0.24ab 90: 10 97.14±0.26ab 49.91±0.21bc 85: 15 96.32±0.12abc 49.67±0.38bc 80: 20 95.54±0.28c 49.14±0.77c different proportions of alpha amylase enzyme and alpha glucosidase enzyme activity are inhibited by blending varying concentrations of tea. tea with a high proportion of carissa carandas leaves inhibits alpha amylase enzyme and alpha-glucosidase activity more effectively. few tea leaves are present. the entire portion of the carissa carandas is visible. moreover, carissa carandas fruit can reduce the activity of both enzymes. hence, carissa carandas have great promise for use in tea preparations—or powdered beverages made with hot water to boost immune, antioxidant, and anti-diabetes properties. from the sensory characteristics test conducted by brewing one sachet of assorted tea weighing 3 grams with 200 grams of hot water at 90 degrees celsius, as shown in table 11, the 90:10 ratio of mixed tea was the most acceptable in terms of appearance, color, aroma, flavor, and astringency. and preference in general. the tea's look is transparent and pink—the aroma of tea leaves blended with the fragrance of delicate fruits. carissa carandas powder, which is mildly astringent and does not leave a bitter aftertaste on the tongue, has the potential to be developed as a nutritional supplement and health drink. featuring the ability to combine with other culinary items. table 11: the ratio of leaves to the fruit of carissa carandas on sensory properties of ready-to-brew tea karanda leaf tea: karanda powder sensory features appearance color smell taste astringency overall preference 100: 0 7.11±0.42b 6.89±0.42d 7.00±0.43d 7.22±0.69c 6.67±0.38b 6.67±0.51d 95: 5 7.22±0.76b 6.57±0.50d 7.43±0.50c 7.33±0.50b 6.62±0.51c 7.52±0.51b 90: 10 8.00±0.24a 8.67±0.42a 8.24±0.61a 7.76±0.91a 7.95±0.62a 8.90±0.50a 85: 15 6.22±0.73b 8.05±0.70b 8.33±1.00b 6.67±0.50c 7.29±0.49b 7.29±0.43b 80: 20 6.33±0.51b 7.48±0.64c 7.57±0.51c 6.38±0.69c 7.14±0.50b 7.00±0.24c 5. conclusion and discussion carissa carandas formed from leaves of varying maturation have distinct hues and antioxidant capabilities. tea made from mature leaves was darker and yellower than young and middle-aged leaves. in terms of its antioxidant properties, tea made from mature leaves was found to have the highest antioxidant activity, as measured by the total amount of "phenolic compounds, antioxidant capacity," and the ability to reduce ferric acid the most when compared to tea made from young and medium-aged leaves. carissa carandas both the extract and residue of freezedried powder possess antioxidant potential. they can inhibit alpha-amylase activity. and alpha-glucosidase the powdered residue of carissa carandas comprises the complete amount of "phenolic chemicals." in addition, the "antioxidant capacity" and the ability to decrease ferric acid were greater than those of the extract produced using the extract method. it was discovered that the extract had a greater total anthocyanin content. moreover, the red agbioforum, 24(3), 2022 | 41 srithongkerd, owatworakit, and siriwong. — physical appearance antioxidant effect alpha-amylase inhibition and alpha-glucosidase… color was more prominent than the residue. carissa carandas powder made as an extract included a higher "moisture content" and aw than the residue, making it easier to create sticky lumps. while using the produced residue of carissa carandas powder to raise the antioxidant content of tea leaves, it was discovered that a 10 percent increase enhanced the flavor of the tea. there was an increase in sour and sweet, whereas astringency decreased. in addition, people acknowledge that carissa carandas can be utilized to create a healthy tea product: blood sugar-lowering antioxidants and anti-diabetes agents. this study has contributed to the corpus of knowledge with fresh insights, as no prior research has examined this behavior about tea and carissa carandas. this research has added fresh insights to the literature concerning using carissa carandas for tea. in addition, companies can use the findings of this study to improve the color and flavor of their tea by working harder. with the help of carissa carandas, these discoveries can be employed in a major way to improve the production of various tea varieties. hence, this study contributes to the corpus of knowledge. nonetheless, it is advised that future researchers continue to work on this topic and develop more dimensions and trials that could provide a better method for producing tea formulas with improved flavor and quality. reference aman, s., naim, a., siddiqi, r., & naz, s. 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(2019). cadhn4, a salt and cold stress-responsive dehydrin gene from pepper decreases abscisic acid sensitivity in arabidopsis. international journal of molecular sciences, 21(1), 26. doi: https://doi.org/10.3390/ijms21010026 https://doi.org/10.1021/acs.jafc.9b03477 https://doi.org/10.3390/ijms21010026 agbioforum, 24(2): 1-11. ©2022 agbioforum the analysis of forest and land fire and carbon and greenhouse gas emissions on the climate change in indonesia kudus kurniawan school of environmental science, university of indonesia, gedung sil-sksg lt. 3, universitas indonesia salemba. jl. salemba raya no. 4, jakarta pusat, indonesia 10430 email: kudus.kurniawan@gmail.com jatna supriatna school of environmental science, university of indonesia, gedung sil-sksg lt. 3, universitas indonesia salemba. jl. salemba raya no. 4, jakarta pusat, indonesia 10430. institute for sustainable earth and resources, faculty of mathematics and natural sciences, university of indonesia email: jatna.supriatna@gmail.com jan sapoheluwakan institute for sustainable earth and resources, faculty of mathematics and natural sciences, university of indonesia email: jan.sopaheluwakan@gmail.com tri edhi budhi soesilo school of environmental science, university of indonesia, gedung sil-sksg lt. 3, universitas indonesia salemba. jl. salemba raya no. 4, jakarta pusat, indonesia 10430 email: soesilo@indo.net.id sri mariati sekolah tinggi pariwisata trisakti, jakarta, indonesia email: srimariati@stptrisakti.ac.id gigit gunarso yayasan belantara, jakarta, indonesia email: gigitgunarso@gmail.com fatimah institute for sustainable earth and resources, faculty of mathematics and natural sciences, university of indonesia email: fatimahjannnah9@gmail.com due to forest and land fires and various industrial emissions, climate change has become a big issue today. the current article explores the effects of forest and land fire, carbon dioxide (co2) emissions, greenhouse gas (ghg) emissions, population expansion, and industrialization on indonesia's climate change. this article gathers statistics from 1991 to 2020 using the world development indicators (wdi) and statista. the researchers utilized dynamic auto-regressive distributed lags (dardl) to examine the relationship between substudy components. forest and land fire, co2 emissions, greenhouse gas emissions, population expansion, and industrialization were positively associated with climate change in indonesia. the report provides policymakers with suggestions for formulating climate change policies utilizing forest and land fire, co2, and ghg emissions. key words: forest and land fire, co2 emission, ghg emissions, population growth, industrialization, climate change in indonesia. 1. introduction over the past few decades, one of the world's most significant problems has been combating climate change to protect future generations from its terrible repercussions. as a result of global warming, the global temperature is rising rapidly (krikken et al., 2021; venäläinen et al., 2020). this temperature shift affects the ozone layer in the form of human deaths, comparable to a heat wave. there are several causes of climate change, including pollution, the generation of energy from traditional resources (such as fossil fuels and coal), forest fires, and industrialization. urgent action is required in the form of energy production from renewable resources, investment in green energy projects, and less chemical use in industry to mitigate the devastating effects of climate change. the population and development of indonesia are strongly impacted by climate change and its environmental implications. due to sound economic policies and political stability, indonesia's economy has grown rapidly during the past two decades. climate change has made the goal of development for emerging economies more challenging. indonesia is already experiencing the negative effects of climate change due to the frequency of heat waves and floods (nawaz et al., 2020; shair et al., 2021). if these repercussions persist and escalate in indonesia, the threat to the country's development challenge will increase. in december 2007, when the indonesian government hosted the united nations climate change conference in bali, climate change in indonesia also garnered international notice. about 10,000 individuals attended the meeting to discuss indonesia's and the world's concerns on climate change (abram et al., 2021; sesana et al., 2021). indonesia is the largest archipelagic state in the world, with more than 17,500 islands and more than 81,000 kilometers (km) of coastline. it has a population of 270.6 million and was southeast asia's largest economy until 2019. (halofsky et al., 2020; iriyadi et al., 2021). the country's islands' landscape, geology, and climate are highly diverse, ranging from peat bogs and mountainous forests to sea and coastal systems. indonesia is very vulnerable to the mailto:kudus.kurniawan@gmail.com mailto:jatna.supriatna@gmail.com mailto:jan.sopaheluwakan@gmail.com mailto:soesilo@indo.net.id mailto:srimariati@stptrisakti.ac.id mailto:gigitgunarso@gmail.com mailto:fatimahjannnah9@gmail.com agbioforum, 24(2), 2022 | 2 kurniawan, supriatna, sapoheluwakan, soesilo, mariati, gunarso and fatimah. — the analysis of forest and land fire and carbon… consequences of climate change, which include catastrophic events such as floods and droughts as well as long-term changes caused by sea level rise, changes in rainfall patterns, and rising temperatures (parks et al., 2020; wang et al., 2020). regarding climate risk, indonesia ranks in the top third of countries due to its sensitivity to all types of floods and extreme temperatures (heinrich et al., 2021; xu et al., 2020). it is projected that these hazards will become more severe as the climate changes. without successful adaptation, population vulnerability will increase (fonseca et al., 2019; lucash et al., 2018). between 2035 and 2044, a catastrophic river flood could affect an additional 1,400,000 people. indonesia is the fifth most populous country in terms of population density in low-elevation coastal zones, making it particularly susceptible to sea level rise. without adaptation, more than 4,2 million people could live in permanently flooded areas by 2070–2100. the availability of water, disaster risk reduction, urban development, especially in coastal areas, and health and nutrition are also anticipated to be impacted by climate change, with repercussions for poverty and inequality. carbon dioxide emissions are one of the primary causes of climate change (li, 2021; rehman et al., 2022; zhao et al., 2021). figure 1 depicts the carbon emission for indonesia. the dreadful effects of climate change, which portend a bleak future for the upcoming generation, are one of the past research gaps that this study will address. although in the race for economic growth, countries, particularly developing nations, ignore environmental degradation. this issue must be examined from economic and environmental perspectives, such as the economy and greenhouse gas emissions. although climate change has been studied extensively, the combination of factors such as carbon, greenhouse gas emissions, industrialization, forest and land fires, and economic growth has not yet been explored. figure 1. carbon emissions in indonesia as a result, the present study will fill this gap by investigating climate change from multiple perspectives. 2) zheng et al. (2019) examined the relationship between greenhouse gas emissions and climate change; however, the current study will also focus on climate change, with the addition of carbon emission, industrialization, forest and land fires, and economic growth in indonesia, using a new data set. 3) even though multiple equations relating to climate change have been explored, the model comprising climate change, carbon emission, greenhouse gas emission, industrialization, forest and land fire, and economic growth has not previously been tested, particularly in indonesia in recent years. 4) khan et al. (2022) studied the relationship between climate change and carbon risk; however, the current study will also focus on climate change, with the addition of industrialization, greenhouse gas emission, forest and land fire, and economic growth, using a new data set. 5) abram et al. (2021) studied the effect of forest fires on climate change. the current study will also examine this topic and add carbon emissions, industrialization, greenhouse gas emission, and economic growth in indonesia. 6) jorgenson et al. (2019) worked on the drivers of global climate change; however, the present study will also examine their work along with carbon and greenhouse gas emissions using a sample of new data. the significance of the present investigation is twofold: 1) climate change is one of the most pressing issues of our time, and the resolution of this issue is crucial to safeguard the future generation; therefore, the present investigation will emphasize the significance of climate change for the world; and 2) the present investigation will also assist environment-related professionals in understanding and revising their policies to control climate change. 2. literature review the world is experiencing rapid climate change, leading to a rise in global temperature. this rising temperature impacts every element of existence, including the melting agbioforum, 24(2), 2022 | 3 kurniawan, supriatna, sapoheluwakan, soesilo, mariati, gunarso and fatimah. — the analysis of forest and land fire and carbon… of glaciers, the increase in energy demand, and the health problems caused by the ozone layer he et al. (2020); (zheng et al., 2019). considering the future of the next generation, the world is highly concerned about the catastrophic effects of climate change (breton et al., 2018; rehman, ma, & ozturk, 2021). carbon emission is one of the fundamental contributors to climate change (chami et al., 2019; zheng et al., 2019). in this regard, khan et al. (2022) explored whether or not a correlation exists between climate change and carbon emission risk. the research was conducted on 129 economies. as a sample, the investigation utilized data spanning 30 years, from 1190 to 2020. the collected data were examined using a gmm estimator. the analysis indicated that economies with greater levels of renewable energy generation and consumption had a more substantial capacity to slow environmental degradation over time by reducing their total carbon emissions. using system gmm approaches modifies these correlations, highlighting the significance of fdi inflows. numerous factors significantly impact climate change, including culture, economy, and socio-culture. in this context, jorgenson et al. (2019) conducted a literature assessment on the four dimensions of cultural, economic, geographic, political, and sociocultural factors that can cause climate change to increase or decrease. according to the investigation's findings, all four components significantly impact climate change. amazon is one of the world's most extensive forests. consequently, it has been one of the most significant carbon sinks during the past few decades. these carbon sinks diminished due to deforestation. gatti et al. (2021) worked on the carbon resources that affect climate change in this context. the amazonia probe was conducted in the united states. as a sample, the investigation used information spanning eight years, from 2010 to 2018. the collected data were evaluated using avp measurements. the analysis indicated that eastern amazonia had higher carbon emissions than the western region, primarily due to differences in the distribution of carbon monoxideforming fire outputs. specifically, southeastern amazonia contributes to the net carbon source in the atmosphere. during the past four decades, eastern amazonia has seen more significant deforestation, warming, and moisture stress than its western counterpart, particularly during the dry season, with the southeast experiencing the most drastic alterations. it is observed that, due to their more significant population, cities create more carbon emissions than small towns. this overproduction contributes negatively to climate change. in this regard, mi et al. (2019) examine the effects of urban carbon emissions on climate change. in china, the investigation was conducted. the inquiry sampled and analyzed data from 2012 as a representative sample. the analysis indicated that urban areas require more energy, typically derived from fossil fuels. the production of fossil fuels generates carbon emissions, which in turn cause climate change. in recent decades, environmental deterioration has been one of the world's most pressing concerns (dino et al., 2019; tarroja et al., 2018). numerous factors, including energy generation from traditional resources, carbon emissions, and greenhouse gas emissions, contribute to this phenomenon. this study attempted to examine the relationship between climate change and greenhouse gas emissions (tribouillois et al., 2018; zhang et al., 2021). zheng et al. (2019) studied whether greenhouse gas emissions play a role in climate change in this environment. the examination encompassed both g7 and brics economies. as a sample, the investigation included data spanning 37 years, from 1990 to 2017. comparative analysis was used to analyze the acquired data. in comparison to brics nations, per capita greenhouse gas emissions have increased in g7 countries, according to the findings of the analysis. energy intensity, economic growth, and carbon factor are the primary determinants of greenhouse gas emissions per capita increase in both sets of countries. the carbon factor, based on greenhouse gas emissions per unit of total direct energy supply, quantifies the carbon intensity of a country's energy sector. similarly, the global community is obligated to enact stringent regulations to limit the effects of climate change. the paris agreement mandates this for all nations. in this context, eskander et al. (2020) examined greenhouse gas emissions from the perspective of climate change legislation. the study was conducted in 133 nations. as a sample, the investigation used information spanning seventeen years, from 1999 to 2016. the data was analyzed with the aid of fmols. according to the study's findings, each new law may reduce annual carbon emissions per unit of gdp by 0.78 percent in the short term (during the first three years) and by 1.78 percent in the long term (after three years). legislative legislation and nations with a competent legal system determine the results. as a result of existing climate restrictions, the global carbon dioxide (co2) emissions in 2016 were lowered by 5.9 gtco per year, which was greater than the us co2 production that year. from 1999 to 2016, overall co2 emissions decreased by 38 gtco2, equivalent to one year of global co2 production. other greenhouse gases are influenced much less. jiang et al. (2020) also investigated the relationship between climatic change and greenhouse gas emissions. the analysis found that releasing greenhouse gases is one of the primary causes of climate change. the forest covers a vast portion of the world's surface. some regions are under the rigorous supervision of humans. however, a vast region is beyond the world's approach and control. multiple forest fires, caused by various factors, result in irrecoverable losses, release a substantial quantity of carbon emissions, and environmental deterioration (ertugrul et al., 2021). the black summer bushfire crisis in southeast australia in 2019-2020 was unprecedented in terms of the quantity of burned forest, the radiative intensity of the flames, and the extraordinary frequency of fires that became intense pyroagbioforum, 24(2), 2022 | 4 kurniawan, supriatna, sapoheluwakan, soesilo, mariati, gunarso and fatimah. — the analysis of forest and land fire and carbon… convective events. as 2019 was the warmest and driest year on record in australia, the ground was prepared for wildfires when subjected to hazardous fire conditions and ignition. abram et al. (2021) studied whether there is a correlation between climate change and forest fires in this scenario. in australia, the investigation was carried out. the analysis indicated that forest fires are one of the most significant contributors to climate change, as they emit a substantial amount of carbon dioxide, which has a detrimental impact on the climate. back in 2018, there was a fire incident in sweden. in this context, krikken et al. (2021) examined the relationship between climate change and forest fires. in sweden, the investigation was conducted. the research indicated that the 2018 forest fire in sweden resulted in the discharge of a substantial amount of carbon emissions. this carbon output contributes negatively to climate change. similarly, michetti et al. (2019) examined the relationship between forest fires and climate change. in italy, the investigation was conducted. as a sample, the investigation used information spanning eleven years, from 2000 to 2011. the collected material was examined using the pearl technique. the analysis indicated that forest fires emit carbon, contributing to further environmental devastation. countries with a high proportion of forest area guarantee optimum safety to prevent forest fires caused by any incident. countries worldwide are in a race to ensure their economic development to provide a bright future for future generations and improve the standard of living of the current generation. this economic growth has various secondary effects, including environmental damage and industrialization. ceesay et al. (2023) explored the relationship between economic development and climatic change in this environment. the investigation took place in gambia. as a sample, the study used information spanning 57 years, from 1960 to 2017. the collected data was evaluated using the ardl methodology. the investigation revealed that 1) the gambia's increasing fish and livestock output had a significant positive impact on gdp growth, 2) the expansion of agricultural and food imports harms gdp growth, 3) there is a one-way relationship between lagged gdp growth rates and rates of growth in the availability of food, 4) lagged values of gdp growth indicate a direct link between granger and lagged values of agricultural growth, and 5) lagged values of gdp growth indicate a direct link between granger and la similarly, guedie et al (2022) studied whether economic development and climate change are related. the investigation was conducted in asean nations. as a sample, the analysis used information spanning 32 years, from 1982 to 2014. with the aid of fmols, the collected data was examined. environmental degradation (co2 emissions) and financial and economic development, as well as fdi, were found to have a statistically significant long-term co-integrating relationship in the selected asean economies. moreover, fdi, financial expansion, and economic progress increase environmental degradation in the asean-5 countries. the quadratic term for economic development had a negative influence on environmental deterioration. in addition, shimada (2022) explored the connection between climate change and economic growth. the investigation took place in africa. as a sample, the study utilized data spanning 52 years, from 1961 to 2011. pdrm analysis was employed to examine the collected data. the analysis indicated that natural disasters caused by climate change affect poverty, agriculture, and economic development in africa. in addition, they led to violent clashes. the calamities with the most significant adverse effects are shortages, severely damaging crops such as maize and coffee, increasing urban poverty, and violent warfare. in contrast, foreign aid has a positive impact, but it pales compared to the devastation caused by climate-related natural disasters. cereal food aid has a negative crowdingout effect on cereal production. international funders should reassess their projects to improve africa's adaptability to disasters. due to government efficiency, the number of fatalities has dropped, and this is an area where africa's attempts to adapt are supported. to improve their economic performance, the nation’s pursue diverse strategies. business expansion is one of the primary drivers. in this way, the business community serves as a fulcrum. in this setting, governments promote industrialization to attract investment from internal and external sources. this growth in industrialization leads to increased chemical usage, increasing carbon emissions. this carbon output contributes to adverse climate change. in this context, abram et al. (2021) examined whether industrialization plays a role in climate change or environmental deterioration. in australia, the investigation was carried out. as a sample, the study included data spanning 35 years, from 1980 to 2014. the collected data were examined with the assistance of ekc. the analysis indicated that there is a relationship between the shortand long-term varying variables. economic expansion, energy consumption, industrialization, stock market growth, and co2 emissions display bidirectional causality in the near run. on ekc, however, there are not much-supporting data. this is due to the long-term positive effects of financial development, energy consumption, and trade openness on co2 emissions. it is interesting to notice that industrialization does not affect co2 emissions. similarly, wang et al. (2020) explored the relationship between industrialization and climate change regarding carbon emissions. the investigation was conducted in apec member states. as a sample, the study included data spanning 25 years, from 1990 to 2014. with the aid of dsur, the acquired data was evaluated. according to the inquiry's findings, industrialization harms the environment by emitting carbon dioxide into the atmosphere. in addition, growing co2 emissions have been attributed to urbanization, energy intensity, and economic growth. in addition, a one-way causal agbioforum, 24(2), 2022 | 5 kurniawan, supriatna, sapoheluwakan, soesilo, mariati, gunarso and fatimah. — the analysis of forest and land fire and carbon… relationship is observed between industrialization and co2 emissions. in addition, zafar et al. (2020) explored whether industrialization contributes to climate change through environmental contamination. the research was conducted on asian economies. as a sample, the investigation included information spanning 26 years, from 1991 to 2017. with the aid of fmols, the collected data was examined. the analysis indicated that industrialization has a substantial long-term impact on carbon dioxide emissions. in addition, different industrialization development approaches should be implemented based on economic growth rates to reduce emissions. in addition, the report advised that the selected asian economies specialize in limiting carbon emissions from industrialization. in addition, lin et al. (2015) examined whether industrialization affects climate change regarding carbon emissions. the investigation took place in nigeria. as a sample, the analysis utilized data from 31 years from 1980 to 2011. the collected data were evaluated using the adf test. the study indicated that long-term strategies that inflict permanent shocks on the variables are required to accomplish sustained economic growth, industrialization, and co2 reduction. according to the analysis's conclusion that there is a substantial inverse relationship between industrial value-added and co2 emissions, there is no evidence that industrialization in nigeria raises carbon emissions. gdp per capita and population have significant and positive effects on co2 emissions. at a 10% concentration, energy and carbon intensities have a marginally positive impact on co2 emissions. 3. research methods the article investigates the impact of forest and land fire, co2 emissions, ghg emissions, population growth, and industrialization on climate change in indonesia. the article used the wdi and statista for the data collection and collected the data from 1991 to 2020. the study established the estimated equation with the help of understudy variables given below: 𝐶𝐶𝑡 = 𝛼0 + 𝛽1𝐹𝐿𝐹𝑡 + 𝛽2𝐶𝑂2𝐸𝑡 + 𝛽3𝐺𝐻𝐺𝐸𝑖𝑡 + 𝛽4𝐼𝑁𝐷𝑡 + 𝛽5𝐸𝐺𝑡 + 𝑒𝑡 (1) where; cc = climate change t = time period flf = forest and land fire co2e = carbon dioxide emissions ghge = greenhouse gas emissions ind = industrialization eg = economic growth the article measured climate change as a function of temperature rises in degrees celsius as the dependent variable. in addition, the study utilized three predictors, including forest and land fire as measured by land and forest burned (kilo hectare), co2 emissions as measured by co2 emissions (metric tons per capita), and ghg emissions as measured by total ghg emissions (percent change from 1990). in addition, the paper employed two control constructs: population increase as assessed by population growth (annual percent) and industrialization as measured by industry value added (percent of gdp). table 1 displays all measurements of variables under investigation. table 1. variables with measurements s# variables measurement sources 01 climate change temperature increases in degrees celsius. statista 02 forest and land fire land and forest burned (kilo hectare) statista 03 carbon dioxide emissions co2 emissions (metric tons per capita) wdi 04 greenhouse gas emissions total ghg emissions (% change from 1990) wdi 05 industrialization industry value added (% of gdp) wdi 06 population growth population growth (annual %) wdi the article applies descriptive statistics that expose the details of all understudy variables. moreover, the study also applies the correlation matrix that describes the correlation among constructs. in addition, the article provides the unit root of the variable using augmented dickey-fuller (adf) and phillips-perron (pp) tests. the equation for the unit root test is given below: 𝑑(𝑌𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑌𝑡−1 + 𝑑(𝑌𝑡(−1)) + ɛ𝑡 (2) in addition, the article also applies the (westerlund et al., 2008) approach to analyze the co-integration that is important to apply a suitable model. the equations are mentioned below: lmφ(i) = tφ̂i (r̂i/σ̂i) (3) lmτ(i) = φ̂i/se(φ̂i) (4) in the equations mentioned above, the standard error is shown by �̂�𝒊, and the long-run measured variance is shown by �̂�2 𝑖. moreover, the article applies the ardl model because the unit root test shows that some constructs are stationary at level, but others are stationary at first difference. the ardl model controls the effects of heteroscedasticity and autocorrelation (zaidi et al., 2018). the equation of the approach is mentioned below: ∆𝐶𝐶𝑡 = 𝛼0 + ∑𝛿1∆𝐶𝐶𝑡−1 + ∑𝛿2∆𝐹𝐿𝐹𝑡−1 + ∑𝛿3∆𝐶𝑂2𝐸𝑡−1 + ∑𝛿4∆𝐺𝐻𝐺𝐸𝑡−1 + ∑𝛿5∆𝐼𝑁𝐷𝑡−1 + ∑𝛿6∆𝑃𝐺𝑡−1 + 𝜑1𝐶𝐶𝑡−1 + 𝜑2𝐹𝐿𝐹𝑡−1 + 𝜑3𝐶𝑂2𝐸𝑡−1 + 𝜑4𝐺𝐻𝐺𝐸𝑡−1 + 𝜑5𝐼𝑁𝐷𝑡−1 + 𝜑6𝑃𝐺𝑡−1 + ɛ𝑡 (5) finally, the article applies the dardl model because it is the latest approach introduced by jordan et al. (2018). this model can cover the issues that the ordinary ardl model did not overcome. the equation of the approach is mentioned below: ∆𝐶𝐶𝑡 = 𝛼0 + ∑𝛿1∆𝐶𝐶𝑡−1 + ∑𝛿2∆𝐹𝐿𝐹𝑡 + agbioforum, 24(2), 2022 | 6 kurniawan, supriatna, sapoheluwakan, soesilo, mariati, gunarso and fatimah. — the analysis of forest and land fire and carbon… ∑𝛿3∆𝐹𝐿𝐹𝑡−1 + ∑𝛿4∆𝐶𝑂2𝐸𝑡 + ∑𝛿5∆𝐶𝑂2𝐸𝑡−1 + ∑𝛿6∆𝐺𝐻𝐺𝐸𝑡 + ∑𝛿7∆𝐺𝐻𝐺𝐸𝑡−1 + ∑𝛿8∆𝐼𝑁𝐷𝑡 + ∑𝛿9∆𝐼𝑁𝐷𝑡−1 + ∑𝛿10∆𝑃𝐺𝑡 + ∑𝛿11∆𝑃𝐺𝑡−1 + ɛ𝑡 (6) 4. findings the article employs descriptive statistics that reveal the specifics of all variables under consideration. the output showed that thirty observations were collected between 1991 and 2020. in addition, the study revealed that the average cc value was 26.092 degrees celsius, the average flf value was 1.102 hectares, and the average co2 emissions per capita was 1.558 kilograms. the study results also revealed that the average ghge value was 10.536%, the average ind value was 43.073%, and the average pg value was 11.369%. table 2 summarizes the results of the study. table 2. descriptive statistics variable obs mean std. dev. min max cc 30 26.022 0.544 25.607 26.417 flf 30 1.101 0.735 0.936 1.787 co2e 30 1.553 0.348 0.887 2.295 ghge 30 10.552 73.423 -46.574 332.646 ind 30 43.072 3.022 38.254 48.064 pg 30 1.362 0.151 1.063 1.737 moreover, the study also applies the correlation matrix that describes the correlation among constructs. the outcomes indicated that forest and land fire, co2 emission, ghg emissions, population growth, and industrialization positively affect climate change in indonesia. table 3 highlights the outputs of the study. table 3. matrix of correlations variables cc flf co2e ghge ind pg cc 1.000 flf 0.674 1.000 co2e 0.394 0.489 1.000 ghge 0.662 0.644 0.488 1.000 ind 0.634 -0.334 0.747 0.749 1.000 pg 0.776 -0.195 -0.536 -0.646 0.736 1.000 in addition, the article provides the unit root of the variable using adf and pp tests. the outcomes revealed that the cc, flf, ind, and pg are stationary at level, but co2 emissions and ghge are stationary at first difference. table 4 highlights the outputs of the study. table 4. unit root test adf pp series level first difference level first difference cc -3.839*** ------3.563*** ----- flf -3.768*** ------2.902*** ----- co2e ------4.567*** ------4.674*** ghge ------4.873*** ------5.744*** ind -3.098*** ------3.921*** ----- pg -2.954*** ------4.093*** ----- in addition, the study employs the (westerlund et al., 2008) method for analyzing co-integration, which is essential for applying an appropriate model. the results revealed that tstatistics are more than or equal to 1.96, and p-values are less than 0.05. these results indicated the existence of cointegration. table 5 summarizes the results of the investigation. table 5. co-integration test model no shift mean shift regime shift test stat p-value test stat p-value test stat p-value lmτ -5.343 0.000 -5.734 0.000 -6.496 0.000 lmφ -5.986 0.000 -5.837 0.000 -6.102 0.000 due to forest and land fires and various industrial emissions, climate change has become a big issue today. the current article investigates the effects of forest and land fire, co2 emissions, ghg emissions, population growth, and industrialization on indonesia's climate change. the researchers utilized the dardl to examine the relationship between substudy constructs. forest and land fire, co2 emissions, greenhouse gas emissions, population expansion, and industrialization were positively associated with climate change in indonesia. table 6 summarizes the results of the study. agbioforum, 24(2), 2022 | 7 kurniawan, supriatna, sapoheluwakan, soesilo, mariati, gunarso and fatimah. — the analysis of forest and land fire and carbon… table 6. dynamic ardl model variable coefficient t-statistic prob. ect -3.783*** -5.883 0.000 𝐹𝐿𝐹𝑡−1 5.192*** 4.739 0.000 flf 4.328*** 4.902 0.000 𝐶𝑂2𝐸𝑡−1 6.361*** 5.383 0.000 co2e 2.910** 2.121 0.021 𝐺𝐻𝐺𝐸𝑡−1 3.673** 2.673 0.015 ghge 2.547** 2.121 0.021 𝐼𝑁𝐷𝑡−1 5.655*** 5.673 0.000 ind 2.673*** 4.641 0.000 𝑃𝐺𝑡−1 3.562*** 4.273 0.000 pg 3.102*** 4.332 0.000 cons 3.775*** 4.901 0.000 r square = 62.675 stimulation = 5000 5. discussion due to forest and land fires and various industrial emissions, climate change has become a big issue today. the current article explores the effects of forest and land fire, co2 emissions, ghg emissions, population expansion, and industrialization on indonesia's climate change. the results indicated that forest and land fires affect climate change positively. these findings are consistent with stephens et al. (2020), who note that forest development preserves climate equilibrium by reducing greenhouse gas emissions, stabilizing the temperature, and regulating water flow. when woods are burned by fire, the climate becomes unbalanced and causes problems for living things. these findings are further corroborated by prichard et al. (2021), who demonstrate that forests and land fires are detrimental to the environment. the fire plumes and their further diffusion could produce hazardous compounds that, when mixed with air, can disrupt the climate's equilibrium. these findings concur with venäläinen et al. (2020) 's examination of the influence of forest and land fires on natural climate. according to the study, if a large forest or land fire gets out of control, it creates smog, causes greenhouse gas emissions, and raises the temperature. the results demonstrated that co2 emissions influence climate change positively. following nguyen et al. (2021), the natural greenhouse effect that keeps the earth's atmosphere above freezing would be insufficient if co2 emissions were eliminated. by emitting more carbon dioxide into the atmosphere, humans accelerate the natural greenhouse effect and raise the planet's temperature. hence, co2 emissions cause climate change. these findings are also corroborated by adedoyin et al. (2020), who propose that the amount of co2 emissions in the atmosphere is maintained by nature. when human activities increase, co2 levels rise, resulting in increased greenhouse effects and climate imbalance. to dusenge et al. (2019), one of the most significant climate changes is global warming. by forming a layer, co2 emissions from human activities trap heat in the earth. hence, co2 emissions cause climate change. results demonstrated that greenhouse gas emissions influence climate change positively. these findings are also consistent with beach et al. (2019), which indicate that fire is burned to provide energy to power various devices and conduct operations. in this process, which yields energy, greenhouse gases are also emitted. ghgs create heat for a specific period and limit the sun's heat to the earth's surface. thus, increasing ghg emissions result in a shift in climate equilibrium. these findings are also supported by mikhaylov et al. (2020), who found that the ghgs, as a result of practices involving the combustion of fossil fuels, waste emissions from manufacturing firms, and the use of chemical-based products, deplete the ozone layer and allow the sun's warmth to increase globally. changes in climate and weather patterns may occur during this time. similarly, these results concur with manabe (2019). according to the previous study, climate change is likely to occur when human activities result in high ghg emissions. the results demonstrated that industrialization affects climate change positively. these results are also consistent with rehman, ma, ahmad, et al. (2021)'s finding that as industrialization increases, manufacturing units expand, and as trade increases, transportation increases as well. in these processes, fossil fuels such as coal, oil, gas, petroleum, and ore are burned to produce energy. however, hazardous gases such as carbon dioxide, methane, and nitrous oxide, among others, are also emitted during these processes, and these gases cause climate change. these findings are also corroborated by dong et al. (2021), who assert that industrialization dramatically alters the lifestyles of rural residents. as the standard of living rises, so do human want, and the use of fossil fuels and chemical processes to meet these requirements emits chemicals, generating the greenhouse effect. climate change constitutes the end of the greenhouse effect. following the findings of opoku et al. (2020), if industrialization occurs, machines will increase to facilitate and accelerate human practices. the increased use of machinery produces pollutants that could alter the natural climate equilibrium. the results demonstrated that economic expansion affects climate change positively. these findings are also consistent with abram et al. (2021) 's assertion that when a nation experiences rapid economic growth, businesses develop the capacity to acquire machines, plants, and a variety of supporting technologies as the skills to interact agbioforum, 24(2), 2022 | 8 kurniawan, supriatna, sapoheluwakan, soesilo, mariati, gunarso and fatimah. — the analysis of forest and land fire and carbon… with them. when humans use a growing number of devices, plants, and technologies, toxic substances are produced that deplete the ozone layer and cause climate change. these results are also supported by albert (2020), who asserts that imports of energy resources, transport vehicles, and manufacturing technologies are high whenever the economy is expanding, and trade is robust. in this scenario, the nation's use of energy and chemicals increases and becomes a significant source of greenhouse gas emissions. increasing greenhouse gas emissions alter the climate. these findings are also consistent with dodson et al. (2020) 's conclusion that economic growth improves the financial position of both private businesses and government revenues. in this circumstance, they struggle to complete developmental projects, and the construction work, use of technologies, and consumption of energy release contaminated substances into the air, resulting in climate change. 6. implication the current study can provide authors with guidelines for its contribution to literature. the study investigates the effects of forest and land fires, co2 emissions, greenhouse gas (ghg) emissions, industrialization, and economic growth on climate change. separate studies have already addressed the relationship between forest and land fires, co2 emissions, greenhouse gas emissions, and climate change. this study examines the role of forest and land fires, co2 emissions, and greenhouse gas emissions in climate change. this study contributes to the existing literature by analyzing the relationship between these factors and climate change in indonesia. climate change is a major concern for nearly all nations today. the current is crucial for growing economies such as indonesia. the report provides guidelines for addressing climate change challenges. the study suggests that policies should be designed to prevent forest and land fires to combat climate change. it also indicates that co2 emissions-causing practices and resources must be discouraged to avoid climate change. it is suggested to policymakers that efforts must be made to reduce ghg emissions by modifying policies. this might be beneficial for preventing climate change. the study also reveals that the government must manage industrialization and the economic changes it brings to prevent climate change. the study provides policymakers with guidelines for establishing climate change policies using forest and land fire, co2, and ghg emissions. in addition, the study indicates that if a country experiences rapid economic growth, the government must adopt environmentally friendly practices to prevent climate change. 7. conclusion the study aimed to examine the effects of forest and land fires, co2 emissions and ghg emissions, industrialization, and economic growth on climate change. indonesian-collected empirical data about the factors. forest and land fires, co2 emissions, ghg emissions, industrialization, and economic development affect climate change positively. the results indicated that if forests catch fire or if a fire breaks out elsewhere on the land, smog, heat, and harmful gases are produced, which may lead to climate change. these results also demonstrated that after destroying the ozone layer, co2 emissions trap heat in the earth and cause climate change. in addition, the results demonstrated that when humans emit greenhouse gases, they increase the amount of sunlight reaching the planet's surface, causing climate change. in addition, the results show that economic growth generates a situation in which ghg emissions and numerous harmful substances are produced. this results in global warming. in addition, the study found that industrialization increases the consumption of the chemical, energy, and technological resources. the conclusion is climate change. 8. limitations this research has several limitations. with their expertise, future authors can eliminate these limitations from the study. the study investigates the effects of factors such as forest and land fires, co2 emissions, and greenhouse gas emissions on climate change. however, numerous other factors can either contribute to climate change or be used to combat it. using limited elements to evaluate climate change renders the study insufficiently exhaustive. future climate change research must incorporate a more significant number of variables. in addition, the time frame of the present study is constrained, and data were collected from a single economy, indonesia, to support the relationship between forest & land fire, co2 emissions, ghg emissions, industrialization, and economic growth on climate change. this restricts the study's applicability to a particular generation and nation. it is anticipated that future authors will collect data from more countries over an extended period. references abram, n. j., henley, b. j., sen gupta, a., et al. 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buallay, 2020; alnien & pereira, 2021). higher education institutions have also shifted their attention to promoting sustainable work environments that incorporate green human resource management practices into daily activities (mehling & kolleck, 2019; mian et al., 2020). the trend of sustainable practices in higher education institutions focuses primarily on promoting soes and green hrm practices (aboramadan, 2022; anwar et al., 2020; gilal et al., 2019; anwar et al., 2022). incorporating these concepts remains limited in saudi arabia's higher education institutions (alkhayyal et al., 2019; almulhim & cobbinah, 2022; singh et al., 2022; alkhayyal et al., 2019). these institutions face numerous obstacles in adopting sustainability practices and ghrm. one of the greatest obstacles is the absence of knowledge sharing. ks is essential for promoting sustainable practices in organizations (ahmad & karim, 2019; quarchioni et al., 2022). moreover, the active promotion of ghrm and sustainability practices are also supported by activities that develop lifelong learning skills in the teaching staff (anthony et al., 2020; cropley & knapper, 2021; tchamyou, 2020). as the pandemic has made clear, the future will require instructors and students who can adapt to dynamic challenges. therefore, these skills must be developed immediately. however, saudi arabian organizations lack ks and continuous learning processes, a significant barrier to adopting ghrm and sustainable practices within these organizations. saudi arabian organizations lack the technological resources required for the efficient and effective implementation of sustainable practices (almamary et al., 2022; alasmari & zhang, 2019; allmnakrah & evers, 2020). consequently, despite the research emphasis on ghrm practices, there is a paucity of implementation and investment for expanding soes in higher education institutions across the nation. these obstacles undermine the practical and theoretical requirements for ghrm in education uncovered by recent research. ghrm is essential for the advancement of an soe because it promotes the incorporation of environmental considerations into hr functions (benevene & buonomo, 2020; muhammad ali & nisar, 202). in saudi arabia, the government is committed to achieving sustainability goals (bataeineh & aga, 2022; mitchell & alfuraih, 2018; yusuf, 2017), and the adoption of ghrm is the first step that can assist higher education institutions in enhancing ks and lifelong learning, which are significant factors in the improvement of an soe (mahdy et al., 2023; prodanova & kocarev, 2022). the purpose of the current study is to investigate the influence of knowledge-sharing and lifelong learning practices on the impact of ghrm on an soe. this objective is translated into the subsequent objectives.  lackto explore the impact of ghrm on an soe in higher education institutes in saudi arabia mailto:fmuthuswamy@kfu.edu.sa mailto:suresh.e@sct.edu.om agbioforum, 25(1), 2023 | 2 muthuswamy and esakki. — green hrm practices and sustainable work environment among higher educational institutions of saudi…  to examine the mediation effect of ks between ghrm and soe in higher education institutes in saudi arabia  to examine the mediation effect of lifelong learning practices between ghrm and soe in higher education institutes in saudi arabia the research conducted and presented in this article sheds light on how ghrm can facilitate an soe. in addition, researchers, industrialists, academics, and managerial stakeholders will be better equipped to use green human resource management practices to enhance ks and continuous learning in higher education institutions. this paper will make significant contributions and explain the significance of sustainability practices in saudi arabian higher education institutions. the remainder of this paper will include a literature review, an explanation of the methodology for data analysis, the presentation and discussion of findings, and the study's implications, limitations, and recommendations for future research. 2. review of literature 2.1 theoretical background (gilal et al., 2019) climate change is a severe issue facing humanity today and is responsible for increasing the environmental pressure on employees during their working hours in all industries. in addition, ecological stakeholders are emphasizing ghrm practices (guerci et al., 2016; vázquezbrust et al., 2022; yong et al., 2022). many academic researchers (saeed et al., 2019) have emphasized the significance of hrm green practices in educational institutions and industrial sectors, stating that the environmental performanceindustryy sector is contingent upon the hrm sector's policies. (ma et al., 2021) human resource management (hrm)'s green environmental practices have a significant impact on employees' adaptability to them for environmental improvement. this is supported by the theory of organizational citizenship behavior toward the environment (ocbe), which states that employees' voluntary actions are aimed at environmental enhancement. ocbe contributes to environmental sustainability by reducing organizational resource consumption and encouraging employees to preserve the organizational environment. additionally, it contributes to the willingness of employees at a particular institution or organization to implement environmentally friendly human resource management practices to promote a sustainable environment. to research (pham et al., 2019), when employees participate in green practices such as ghrm, they become more environmentally conscious and go above and beyond their responsibilities to maintain the work environment. however, extensive research is required to comprehend the green practices of hrm in higher education institutions and their impact on environmental sustainability. 2.2 impact of green hrm practices on the work environment in the modern world, organizations are shifting toward green practices to maintain a sustainable and healthy work environment, and human resource management sectors are attempting to promote a green environment for their employees so that they can work with greater zeal and enthusiasm. recent research (aboramadan, 2022) has demonstrated that the human resource management department is responsible for sustaining employees' behaviors, responsiveness, and enthusiasm about their job responsibilities. in addition, it has been observed that human resource management impacts the ecological environment of any organization. additionally, higher education institutions require a green and supportive environment for their employees to work in a green environment and ardently carry out their job responsibilities. in the past, many higher education institutions have attempted to promote a green environment for their employees by integrating green practices into their services (roos & guenther, 2020) because this is necessary for the employees to be able to work and promote positivity at their workplaces. it has been observed that green human resource practices have a significant impact on the work environment not only in the higher education sector but also in the industrial sector of a number of countries, fostering a more tranquil and sustainable workplace for employees. ghrm practices positively impact environmental sustainability in higher education institutions (muhammad ali & nisar, 2022) because ghrm practices contribute to changes in employee behavior, which will increase green and soe initiatives in higher education institutions. in addition, this study emphasizes the significance of ghrm practices. it explains how the green practices of human resource management not only affect the level of employee commitment but also improve the environmental performance of higher education institutions. h1: hence, it can be proposed that green practices of hrm significantly impact the work environment. 2.3 role of knowledge sharing as a mediator knowledge sharing is a significant means of acquiring information in the workplace. ks functions as a mediator to promote an soe in diverse global sectors. recent research has demonstrated that ks positively mediates the sustainability of the work environment in higher education institutions (rubel et al., 2021), indicating that green ks significantly influences the mediating effect between green human resource management practices and green employee behaviors toward the work environment. globally, the higher education sectors are being affected to change their way of working by focusing on knowledgesharing practices to maintain a supportive work environment (soe) for employees, and are under pressure from external sectors to become more efficient and effective green practices of hrm and green ks to mediate agbioforum, 25(1), 2023 | 3 muthuswamy and esakki. — green hrm practices and sustainable work environment among higher educational institutions of saudi… a supportive work environment for employees (alhusseini et al., 2021). in addition, knowledge and ks are essential elements for significantly enhancing workplace innovations. knowledge and ks management are necessary for organizations because it facilitates the transformation of tacit knowledge into explicit knowledge (he et al., 2022). to promote ks in higher educational institutions, transformational leadership can act as a determinant because it can innovate the ways to share knowledge, bring innovation, and result in the enhancement of the green behavior of employees toward their goals, which will ultimately promote organizational performance by sustaining the work environment and also bring innovation to higher educational institutions (al ahmad et al., 2019). heis are promoting the concept of ks among their employees because the economy is dependent on knowledge today (akram et al., 2020). therefore, heis are promoting the concept of ks among their employees. h2: knowledge sharing significantly mediates the association between ghrm practices and work environment sustainability. 2.4 role of life-long learning as a mediator in this technologically advanced and interconnected world, there should be an innovation in the learning strategies of higher education departments to improve the work environment's sustainability. lle should mediate between green human resource management practices and soe in various organizations and the higher education sector. (parisi et al., 2019) lle is the ability to continuously acquire, transfer, and modify knowledge and skills throughout an employee's career so that they can foster a supportive work environment for themselves. higher education institutions could expedite this by enabling the digital learning process. moreover, digital learning could be promoted in the form of blended learning, where knowledge can be delivered through a combination of face-to-face and digital learning strategies, where learning instructions can be passed on online or offline, and this will promote a greener and soe for higher education employees (prachagool et al., 2022). in this swiftly digitalizing era, both the academic and business sectors are contributing to innovation to improve the soe for their employees. in this digitalized era, the significance of lifelong learning has increased because personnel in higher education institutions must innovate their knowledge, skills, and training methods. ultimately, this is the key to their competitiveness and the preservation of their employment environments (terzi et al., 2022). with the assistance of ks and lle as mediators, it can be concluded that ghrm practices significantly impact the work environment of heis and are responsible for enhancing the sustainability of the environment for employees. h3: lle significantly mediates the association between ghrm practices and soe. figure 1: conceptual framework 3. methods 3.1 target population and sampling procedure the focus of the present investigation is the saudi arabian higher education sector. the study employed a nonprobability convenience sampling method to acquire data from 350 employees of various saudi arabian higher education institutions. according to scholtz (2021), convenience sampling is a method in which the researcher includes specific units in the study's sample due to their simple accessibility. this may be due to the respondent's willingness to partake in the study, their availability at the given time, or their geographical proximity (krupnikov et al., 2021). consequently, the researcher has selected this sampling method due to its practicability. the summary of the demographic characteristics of the study's respondents is provided in table 1. 3.2 data collection tool the survey research method has been utilized for data acquisition in this study. as this is a quantitative study, the researcher collected the numerical data using a closedended questionnaire. according to surucu and maslakci (2020), surveys are extensively utilized and advantageous data collection tools in quantitative research (bloomfield & fisher, 2019). this is a very useful research strategy while investigating in a natural environment. also, the current study is objective. according to bhat (2020), in knowledge sharing green hrm practices sustainable work environment life-long learning agbioforum, 25(1), 2023 | 4 muthuswamy and esakki. — green hrm practices and sustainable work environment among higher educational institutions of saudi… objective research, surveys emphasize the target audience's general opinions and document existing conditions. the study has therefore implemented a survey for data collection and organization. the researcher ensured that all questions were written in english and were readily understood by the target audience. table 1: demographics particulars description value % gender male 193 55.1 female 157 44.9 total 350 100 education intermediate 76 21.7 bachelors 172 49.1 masters 88 25.1 other 14 4.0 total 350 100 age less than 25 years old 115 32.9 25 to 30 years old 138 39.4 31 to 35 years old 82 23.4 more than 35 years old 15 4.3 total 350 100 3.3 measurement scales in this investigation, the researcher has adopted measurement scales from prior research. for this purpose, the researcher has conducted an exhaustive literature review. the scales were initially adopted and then modified considering the present study's context. ghrm was measured using a 6-item scale developed by dumont et al. (2017); a sustainable workplace environment was measured using five items adapted from saifulina and carballo penela (2017); 6-items for knowledge sharing was adapted from yu et al. (2022); and 11 items for lifelong learning were adapted from barros et al. (2013). 4. results 4.1 descriptive summary table 2 describes the variables studied. in the descriptive analysis, summary statistics are provided for the research variables useful for ensuring response orientation, data normality, missing values, and outliers. the findings indicate that there were no outliers in the data. as responses were obtained using a five-point likert scale, the number of cases for each variable is 350, indicating no aberration in the data. the resulting minimum and maximum statistics are 1 and 5, respectively. in addition, the skewness values correspond to the cutoff threshold values between -1 and 1. table 2: descriptive of studied variables n minimum maximum mean std. deviation kurtosis statistic statistic statistic statistic statistic statistic std. error ghr 350 1.00 5.00 3.2481 1.05942 -.843 .260 llr 350 1.00 5.00 3.3079 1.19599 -1.021 .260 soe 350 1.00 5.00 3.2560 1.21153 -.909 .260 ks 350 1.00 5.00 3.2876 1.02716 -.959 .260 valid n (listwise) 350 ghr=green hrm practices, llr= life-long learning, soe=sustainable work environment, ks= knowledge sharing 4.2 factor loadings after verifying data normality, outliers, or missing value analysis, the factor loading of each item included in the current study was assessed. the kmo & bartlett test has evaluated sample sufficiency for this purpose. the resultant value of.967 in table 3 ensures sufficient data. in addition, the significance of bartlett's test (p=.000) indicates a correlation between the items. table 3: kmo & bartlett test kaiser-meyer-olkin measure of sampling adequacy. .967 bartlett's test of sphericity approx. chi-square 15071.056 df 300 sig. .000 table 4 illustrates no formulation of any identity matrix or duplication, or cross-loading issues. each item appears in its respective column indicating the significant results of factor loading for the given set of items against each variable. 4.3. validity results through convergent and discriminant validity, the validity of quantitative research mechanisms is confirmed. convergent validity is evaluated using two indicators: composite reliability and extracted average variance. table 5 demonstrates that the cr and ave values exceed the criterion thresholds of 0.70 and 0.50, respectively. therefore, construct validity for the measurement model has been established. the discriminant validity results are also statistically significant, indicating that values are theoretically unrelated and unrelated. the bolded diagonal values represent the significant results of discriminant validity. the discriminant validity of values is written in bold when the initial values are lesser than those wr therefore, both validity conditions are met for the measurement model. agbioforum, 25(1), 2023 | 5 muthuswamy and esakki. — green hrm practices and sustainable work environment among higher educational institutions of saudi… table 4: rotated component matrix component 1 2 3 4 ghr1 .780 ghr2 .783 ghr3 .768 ghr4 .738 ghr5 .718 ghr6 .737 ll1 .843 ll2 .848 ll3 .853 ll4 .848 ll5 .853 ll6 .849 ll7 .849 ll8 .852 soe1 .751 soe2 .777 soe3 .773 soe4 .766 soe5 .744 ks1 .858 ks2 .857 ks3 .861 ks4 .873 ks5 .844 ghr=green hrm practices, llr= life-long learning, soe=sustainable work environment, ks= knowledge sharing table 5: convergent and discriminant validity cr ave msv maxr(h) llr ghrm ksh swe llr 0.996 0.971 0.618 0.998 0.985 ghrm 0.939 0.721 0.625 0.958 0.772*** 0.849 ksh 0.930 0.726 0.196 0.931 0.442*** 0.370*** 0.852 swe 0.967 0.853 0.625 0.968 0.786*** 0.791*** 0.351*** 0.923 ghr=green hrm practices, llr= life-long learning, soe=sustainable work environment, ks= knowledge sharing 4.3 confirmatory factor analysis to corroborate the goodness of fit, confirmatory factor analysis has been considered. cfa utilizes various indicators to assess model adequacy. the cfa results are significant since table 6 demonstrates that each indicator threshold value corresponds to the reported/result values. as the sample size is sufficient, the validity is established, and the model's suitability is confirmed, it can be concluded that structural equation modeling would produce significant results, as depicted in figure 2. table 6: model fitness cmin/df gfi cfi ifi rmsea baseline ≤3 ≥0.8 ≥0.9 ≥0.9 ≤0.08 reported 2.202 0.866 0.980 0.980 0.059 4.4 structural equation modeling the hypothesized model's results and the relationships between variables were evaluated using structural equation modeling. ghr has a significant and positive effect on soe. with a p-value of.016, a one-unit increase in ghr affects soe by.408 units. the hypothesis has been significantly accepted since the p-value is less than the criterion value, i. e. 0.05. table 7: sem direct effect parameter estimate lower upper p soe <--ghr .408 .239 .531 .016 ghr=green hrm practices, llr= life-long learning, soe=sustainable work environment, ks= knowledge sharing table 8: sem indirect effects indirect path standardized estimate lower upper p-value ghr --> llr --> soe 0.343*** 0.268 0.536 0.001 ghr --> ks --> soe 0.006 -0.015 0.032 0.621 ghr=green hrm practices, llr= life-long learning, soe=sustainable work environment, ks= knowledge sharing the results of the mediation hypothesis formulated in section 2 of this investigation are presented in table 8. the initial llr mediation occurs between ghr and soe. llr significantly mediates the relationship between ghr and soe, as indicated by a p-value of 0.001. between ghr and soe, the next ks mediation is evaluated. as the p-value of 0.621 is greater than the significance threshold of 0.05, the mediation is insignificant, and the hypothesis has been agbioforum, 25(1), 2023 | 6 muthuswamy and esakki. — green hrm practices and sustainable work environment among higher educational institutions of saudi… rejected. figure 3 depicts the outcomes of sem with a coefficient effect magnitude. figure 2: cfa figure 3: sem table 8: sem indirect effects agbioforum, 25(1), 2023 | 7 muthuswamy and esakki. — green hrm practices and sustainable work environment among higher educational institutions of saudi… indirect path standardized estimate lower upper p-value ghr --> llr --> soe 0.343*** 0.268 0.536 0.001 ghr --> ks --> soe 0.006 -0.015 0.032 0.621 ghr=green hrm practices, llr= life-long learning, soe=sustainable work environment, ks= knowledge sharing 5. discussion in recent years, interest has increased in implementing green human resource management (hrm) techniques and developing soes in various industries, including higher education institutions. saudi arabia, a rapidly growing nation, recognizes the utility of these strategies and is moving to implement them in its higher education institutions. in this scenario, ks and lle may greatly assist in promoting the adoption and utilization of sustainable business. this study investigates the roles that ks and continuous learning play in promoting ghrm practices and fostering a sustainable workplace environment in the higher education institutions of saudi arabia. this investigation produces results by analyzing the hypothesis. the findings support the first hypothesis (h1) that ghrm practices positively impact the work environment. consistent with prior research, this finding suggests that instituting ghrm practices can improve environmental performance and employee engagement, resulting in a more soe. recent research (aboramadan, 2022) has demonstrated that the human resource management department is responsible for sustaining employees' behaviors, responsiveness, and enthusiasm about their job responsibilities. ghrm practices positively impact environmental sustainability in higher education institutions because they lead to changes in employee behavior that increase the green and soe in higher education institutions (muhammad ali & nisar, 2021). the study discovered that ks mediates the relationship between ghrm practices and the workplace. the study found no evidence to support the second hypothesis (h2) that ks mediates the association between ghrm practices and the work environment. it suggests that ks may not substantially affect the relationship between ghrm practices and the workplace. according to prior research, ks positively mediates the sustainability of the work environment in higher education institutions (rubel et al., 2021), demonstrating that green ks significantly influences the mediating effect between green human resource management practices and green employee behaviors toward the work environment. alhusseini et al. (2021) also argued that the higher education industry should implement knowledge-sharing practices to facilitate employee soe. in addition, external constraints are compelling the industry to implement more efficient and effective green hrm and knowledge-sharing practices to foster a positive work environment for employees. n addition, the study discovered that lle mediates the connection between ghrm practices and the work environment. the result supports the third hypothesis (h3) and suggests that lle can augment the effect of ghrm practices on the workplace. anthonysamy et al. (2020) provide evidence that lle fisa mediator between green human resource management practices and soe in avarious in addition, research (parisi et al., 2019; prachagool et al., 2022) indicates that lle enables employees to continuously acquire and modify their knowledge and skills, resulting in more soe. by combining online and offline learning strategies, digital learning, specifically blended learning, can further promote a greener and more sustainable soe. 6. implications for the study 6.1 practical implications in saudi arabia, the study's relevance is particularly crucial. the study proves that implementing ghrm practices and sustainable painting environments can result in positive outcomes in saudi arabian higher education institutions. the current research suggests that management education institutions can effectively implement sustainable development by emphasizing the study's identified main factors, providing implications for their actions. for instance, the study indicates that ks and continuous learning may significantly promote soes and adopt ghrm practices. 6.2 theoretical implications the study's findings also have some theoretical ramifications. the study sheds light on the factors that promote and inhibit the adoption of soes and ghrm practices in saudi arabian higher education institutions. these findings are essential for the development of concepts and constructs concerning the application of sustainability in higher education institutions. additionally, the study broadened the context of ghrm and linked it to sustainability within educational institutions; therefore, it can serve as a reference for policymakers and hr managers in saudi arabia devising strategies to promote sustainability in higher education institutions. 7. conclusion this study investigated the effect of ghrm practices on an soe in saudi arabian higher education institutions. this research also revealed that ks and lle mediated the relationship between ghrm practices and an soe. based on the results of the hypothesis, it can be concluded that ghrm practices significantly affect the soe in saudi arabian higher education institutions. this finding is consistent with the region's increasing emphasis on sustainability and environmental stewardship. whereas lle mediates significantly between ghrm practice and soe, ks has a negligible effect on the relationship between ghrm practice and soe. o achieves an soe, higher education institutions in saudi arabia should adopt ghrm practices and prioritize ks and lifelong learning. this can have long-term benefits, such as increasing representative satisfaction and commitment, reducing agbioforum, 25(1), 2023 | 8 muthuswamy and esakki. — green hrm practices and sustainable work environment among higher educational institutions of saudi… environmental impacts, and enhancing the institution's reputation in the community. 8. research limitations and future research directions this study did not examine the anticipated costs or challenges of implementing ghrm practices and sustainable workplaces. in addition, this study does not investigate the long-term effects of soes and ghrm practices on organizational outcomes, such as employee retention or financial performance. n addition, the sample size of this cross-sectional study was relatively modest. future research may enhance the sample size for longitudinal studies. the study employed a theoretical framework that included knowledge exchange and lifelong learning as significant variables influencing the relationship between sustainable work environments and green hrm practices. nevertheless, the framework may not have accounted for all variables or factors that could have influenced this relationship. future research could expand the framework to include additional elements and provide a more comprehensive understanding of the topic. future research could examine the relationships between green hrm practices, sustainable workplaces, knowledge exchange, and lifelong learning in various non-academic organizations and industries. this would aid in validating the findings and expanding knowledge of the topic. 9. acknowledgment this work was supported through the ambitious funding track by the deanship of scientific research, vice presidency for graduate studies and scientific research, king faisal university, saudi arabia [grant 3529] references aboramadan, m. 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(2021). higher education for sustainability: a global perspective. geography and sustainability, 2(2), 99-106. doi: https://doi.org/10.1016/j.geosus.2021.05.001 https://doi.org/10.1080/14778238.2020.1730717 https://doi.org/10.1108/ijshe-01-2019-0030 https://doi.org/10.1108/er-04-2020-0163 https://doi.org/10.1002/csr.1694 https://doi.org/10.1002/sd.1654 http://dx.doi.org/10.4102/sajip.v47i0.1837 https://doi.org/10.3390/su14148822 https://doi.org/10.15295/bmij.v8i3.1540 https://doi.org/10.1080/21582041.2018.1433314 https://doi.org/10.1007/978-3-031-12429-7_18 https://doi.org/10.1002/bse.3319 https://doi.org/10.1002/csr.2269 https://doi.org/10.1016/j.jik.2022.100244 https://doi.org/10.5539/ijef.v9n9p111 https://doi.org/10.1016/j.geosus.2021.05.001 agbioforum, 25(1), 2023 | 11 muthuswamy and esakki. — green hrm practices and sustainable work environment among higher educational institutions of saudi… appendix variable name items source green human resource management  my company sets green goals for its employees.  my company provides employees with green training to promote green values.  my company provides employees with green training to develop employees'mployees'e and skills required for green management.  my company considers employees'mployees'e green behavior in performance appraisals.  my company relates employees'mployees'e green behaviours to rewards and compensation.  my company considers employees'mployees'e green behaviours in promotion. (dumont et al., 2017) sustainable workplace environment  my organization has many programs and policies designed to promote environmentally friendly behavior.  my organization makes an active effort to help employees be environmentally proactive.  my organization puts money and effort into showing its support of ecology.  it is easy to find out about environmental support programs within my organization.  my organization provides its employees with useful information they need to behave environmentally friendly. (saifulina et al., 2017) knowledge sharing  people within our organization regularly interact with each other to discuss different environmental developments and share knowledge.  we have a well-organized system through which we can share knowledge and learn from each other.  we are provided with the latest equipment and technology to obtain and share the knowledge.  my organization recognizes and rewards the employees sharing innovative ideas and information to improve the process for the protection of the natural environment.  my organization regularly share the latest environmental knowledge and market trends with its employees through e-mail, training sessions, and workshops.  we regularly share information and knowledge related to the natural environment with our customers, suppliers, and other stakeholders. * (yu et al., 2022) life-long learning  i love learning for its own sake.  when i learn something new, i try to focus  on the details rather than on the "big pict"re".  i am a"le to impose meaning upon what others see as disorder.  when i approach new material, i try to relate it to what i already know.  i feel others are in a better position than i am to evaluate my success as a student.  it is my responsibility to make sense of what i learn at school.  i try to relate academic learning to practical issues.  i often find it difficult to locate information when i need it.*  i can deal with the unexpected and solve problems as they arise.*  i feel uncomfortable under conditions of uncertainty.* (barros et al., 2013) 1. introduction 2. review of literature 2.1 theoretical background 2.2 impact of green hrm practices on the work environment 2.3 role of knowledge sharing as a mediator 2.4 role of life-long learning as a mediator 3. methods 3.1 target population and sampling procedure 3.2 data collection tool 3.3 measurement scales 4. results 4.1 descriptive summary 4.2 factor loadings 4.3 confirmatory factor analysis 4.4 structural equation modeling 5. discussion 6. implications for the study 6.1 practical implications 6.2 theoretical implications 7. conclusion 8. research limitations and future research directions 9. acknowledgment agbioforum, 24(2): 176-186. ©2022 agbioforum the impacts of the mechanism for mobilizing and using financial resources on the efficiency of supply chain linkage in the agricultural sector: a case study of vietnam nguyen thi hai yen lecturer, vinh university (vu), vinh city, vietnam email: nthyen@vinhuni.edu.vn nguyen thi minh phuong * lecturer, vinh university (vu), vinh city, vietnam email: phuongntm@vinhuni.edu.vn nguyen dang que lecture: national academy of public administration (napa). ha noi, viet nam email: nguyendangquenapa@gmail.com nguyen nang hung ph.d. candidate, vinh university (vu), vinh city, vietnam email: hungnn@vinhuni.edu.vn truong cong giap ph.d. candidate, vinh university (vu), vinh city, vietnam email: conggiapxdna@gmail.com nguyen thi my huong lecturer, vinh university (vu), vinh city, vietnam email: ntmhuong@vinhuni.edu.vn nguyen phan thu hang lecturer, sai gon university (sgu), vietnam email: npthang@sgu.edu.vn le thi phuong dung lecturer, fisheries, and technical economic college (ftec), tu son, bac ninh email: dung47ktts@gmail.com * correspondence: nguyen thi minh phuong email: phuongntm@vinhuni.edu.vn using exploratory factor analysis (efa) and structural equation modeling (sem), this study aims to examine the effect of the mechanism for mobilizing and utilizing financial resources on the efficiency of supply chain linkage in the agriculture sector. with a sample size of 603 experts and managers from organizations involved in agricultural supply chain linkages, the results demonstrate the theoretical and practical significance of the research, as well as the significance of the mechanism for mobilizing and utilizing financial resources for agricultural supply chain linkages & the role of integration in the supply chain as an intermediary; information sharing and extroverted culture of participant organizations. in addition, the research confirms the precise relationship between integration and extroverted culture and supply chain members' information sharing. key words: the mechanism, financial resources; the supply chain; efficiency of supply chain linkage; agriculture. 1. introduction organizations place greater emphasis on supply chain linkage management when they recognize the value of cooperation and connection. as the economy develops, specialization becomes more critical (lummus et al., 1999), and firms tend to expand collaboration with other supply chain participants to take advantage of the quality resources of partners at a lower cost rather than selfproducing with lesser efficiency. therefore, firms wish to strengthen their connections to manage supplies and distribution channels better to optimize costs and increase customer happiness, thereby enhancing their competitiveness and profitability (anderson et al., 1990; lee et al., 2000). many researchers concurred that supplier chains, not firms, compete (christopher et al., 2004). several conditions must be met to attain supply chain linkage efficiency or to apply the management philosophy: mutually sharing risks and gains (cooper et al., 1997), cooperation (tyndall et al., 1998), the same aims that concentrate on target customers (la londe et al., 1994), and long-term relationship (croxton et al., 2001). financial resources are the quantity of value expressed in money that is generated through developing and exploiting various sources of capital to establish socio-economic and distribution relations that are appropriate and relevant to a particular level of development. a mechanism for mobilizing and allocating financial resources is a method for obtaining funds from various sources to fulfill specific objectives. establishing methods and techniques for allocating financial resources to mobilize and utilize them is essential. as the environment evolves, companies must likewise evolve and adapt to survive. organizations tend to strengthen partnerships to reduce the effects of supplydemand, technological, and environmental fluctuations (bowersox et al., 1996; chen et al., 2004; mentzer et al., 2001). in terms of operation management, numerous authors have studied and suggested that situational factors such as organizational culture (mcdermott et al., 1999; nahm et al., 2004; naor et al., 2008), enterprises scale (jayaram et al., 2010), and business strategy of organizations (sousa et al., 2001) influence the efficiency of supply chain linkages. in practice, as integration and globalization occur, the mailto:nthyen@vinhuni.edu.vn mailto:phuongntm@vinhuni.edu.vn mailto:hungnn@vinhuni.edu.vn mailto:conggiapxdna@gmail.com mailto:ntmhuong@vinhuni.edu.vn mailto:npthang@sgu.edu.vn mailto:dung47ktts@gmail.com mailto:phuongntm@vinhuni.edu.vn agbioforum, 24(2), 2022 | 177 yen, phuong, linh, hung, giap, huong, hang and dung. — the impacts of the mechanism for mobilizing and using financial… world is becoming more uncertain; instability and trade liberalization promotes open-linked areas; supply chains are an effective solution for businesses to co-exist; therefore, it is essential, from the perspective of supply chains, to recognize the benefits and challenges that agricultural products are facing and to develop strategies for the future challenges of vietnamese agricultural products. an estimated 85 to 90 percent of vietnamese agricultural products are exported under foreign-brand intermediaries. numerous vietnamese businesses exporting agricultural products must use the trademarks of commercial intermediaries in the host countries. some need to use more than ten, or even twenty, foreign trademarks for their products. in other words, even though vietnamese agricultural products circulate in supply chains, they lack their trademarks and only account for 25% of the price paid by customers. in addition, many organizations and individuals in vietnam who participate in the agricultural supply chain are unaware of and preoccupied with future hazards; the link between scientific and technological research and application institutions and agricultural firms is weak and discordant. these are some barriers that impede the effectiveness of the vietnamese agricultural supply chain. this study seeks to examine the effect of the mechanism for mobilizing and deploying financial resources on the effectiveness of supply chain linkage. in the context of vietnamese agriculture, the results demonstrate the theoretical and practical significance of the research and the significance of the mechanism for mobilizing and utilizing financial resources for supply chain linkages in the agricultural sector & the role of integration in the supply chain as an intermediary; information sharing and extroverted culture of participants; recommendations to improve the efficiency of supply chain linkage of vietnamese agriculture. 2. literature review and theories 2.1 literature review the mechanism is the structure of a body with different components that are closely related to each other and the means of operation or the operation of that body; in other words, it is the interactions between components of a body's structure, which are affected by predefined principles and processes, to achieve a particular result (yun, 2005). human is the subject of management. hence human recognition has a significant impact on it. the subject's knowledge in constructing a mechanism for mobilizing and utilizing financial resources refers to the awareness of authorities, managers, and pertinent individuals (hoang, 2018; ly, 2017). managers comprehend the methods and procedures of the task and its deficiencies and flaws, allowing them to provide recommendations to finish the mechanism. thus, the awareness and attitude of managers are crucial (hoang, 2018). even if the mechanism is demonstrated to be effective, its implementation would be hindered by a lack of managerial knowledge and abilities, which could result in the erroneous application of the mechanism. the notion of the supply chain is evolving in numerous industries, including logistics and material management (forrester jay, 1961), networks, and market connection management (chen et al., 2004). (ford, 1990). international competitiveness (handfield et al., 1999) or the dangers of environmental variations, including changes in supplies, demand, and technology (chen et al., 2004; mentzer et al., 2001) and the opportunity of new markets cause the formation of supply chain links (frohlich et al., 2001). based on the theoretical and practical evolution of the notion of supply chain linkage, bechtel et al. (1997) identified four distinct schools of thinking regarding supply chain linkage: (1) linkage/logistics school views supply chain linkage as links of logistics activities; (2) information school investigates the linkage of information from within and outside the enterprise; (3) integration/process school investigates the links of business activities among enterprises in the supply chain; and (4) functional chain awareness school categorizes supply chain links as external links (among enterprises) and internal links (within the enterprise) (among departments). according to lee et al. (1997), supply chain integration must be considered from three perspectives: (1) customer integration, (2) supplier integration, and (3) enterprise integration. customer integration or linkages with customers entails the alignment of production planning and forecasting, the capacity of businesses to communicate with customers, and the delivery of the desired products with the required quality and on time. vertical integration in the supply chain refers to a company's involvement in all phases. in contrast, horizontal integration refers to a company's involvement in only a few stages and cooperation with other companies for the other stages. connection is essential in the supply chain to ensure that data, resources, and products are sent and delivered accurately and on schedule (lambert et al., 2000). according to hari et al. (2005), information sharing is the process or action of transferring existing information inside an organization from those who have it to those who do not. tsui et al. (2006) argued that information sharing is an activity in which employees can exchange their knowledge and experience, accelerating and reducing the cost of projects and plans. information sharing at the organizational level can be viewed from four perspectives, according to the research of sezen (2008) and ipek (2011): (1) sharing information with customers; (2) sharing information with suppliers; (3) sharing information between departments; and (4) sharing internal knowledge and values. barney (1986) is regarded as one of the most widely recognized organizational structure theories. in his research of firms sustained competitive advantage, he described organizational culture as "a collection of values, beliefs, assumptions, and symbols that shape how an organization does business." organizational culture distinguishes one organization from another (schein, agbioforum, 24(2), 2022 | 178 yen, phuong, linh, hung, giap, huong, hang and dung. — the impacts of the mechanism for mobilizing and using financial… 1990) and is a resource that can enhance competitiveness (barney, 1986); it plays a significant role in the organization's success and performance (denison et al., 1995), and it influences the outcome of initiatives and innovations that the organization is implementing (detert et al., 2000). it has been demonstrated that organizational culture influences the adoption of technology (mcdermott et al., 1999; zammuto et al., 1992), production outcomes (nahm et al., 2004), and quality management in operations management (naor et al., 2008; prajogo et al., 2005). (1) basis of truth and logic in the organization; (2) time; (3) motivation; (4) stability vs. change; (5) orientation to work and coworkers; (6) isolation versus collaboration; (7) control, co-ordination, and responsibility; (8) internal and/or external direction and emphasis. 2.2 research hypothesis the mechanism for mobilizing and using financial resources and the efficiency of supply chain linkage organizational structure and technological facilities are vital for constructing, operating, and completing the system for mobilizing and employing financial resources (ammons et al., 2001). in addition to logistics management, supply chain management encompasses the management of other business operations, such as the flow of commodities and information in the supply chain (lambert et al., 2000). cooperation and long-term operation of the links between organizations and individuals within the supply chain rely on the system's effectiveness in mobilizing and deploying financial resources. this study proposes the following hypothesis to evaluate the impact of the mechanism for mobilizing and utilizing financial resources on the efficiency of supply chain linkage in the context of vietnamese agriculture: h1: the mechanism for mobilizing and using financial resources is directly proportional to the efficiency of supply chain linkage in vietnamese agriculture. 2.2.1 the mechanism for mobilizing and using financial resources and integration in the supply chain in supply chain management, the interdependencies between logistical tasks are extensively explored. these connections include both those from within and those from outside the enterprise. logistics integration entails coordinating logistics-related tasks such as inventory management, freight management, warehouse management, and order and purchase management (romano, 2003). this study examines the relationship between the method for mobilizing and utilizing financial resources and supply chain integration. h2: the mechanism for mobilizing and using financial resources is directly proportional to the integration of supply chain linkage in vietnamese agriculture. 2.2.2 integration and efficiency of supply chain linkage compatible with the notion of the relationship between strategy, structure, and business performance, the impact of business strategy on supply chain connectivity is consistent with the theory of the relationship between strategy, structure, and business performance (williams, 1992). this idea posits that corporate strategy supports changes in organizational structures and procedures and influences business performance (habib et al., 1991). regarding this topic, the authors hypothesize: h3: integration is directly proportional to the efficiency of supply chain linkage in vietnamese agriculture. 2.2.3 the mechanism for mobilizing and using financial resources and information sharing of participants in addition to efficacy, the frugality of the system for mobilizing and deploying financial resources is a crucial necessity in developing and perfecting management (nguyen et al., 2020). according to ipek (2011), sharing information amongst supply chain participants can positively affect the efficiency of the supply chain with suitable use. co-ordination between participants in the agricultural industry improves the efficiency of the supply chain and facilitates information sharing between businesses. consequently, the following can be hypothesized: h4: the mechanism for mobilizing and using financial resources is directly proportional to the integration of supply chain linkage in vietnamese agriculture. 2.2.4 the correlation of information sharing between participants and the efficiency of the supply chain information sharing is one of the critical components that shape the values of companies. numerous investigations asserted that information exchange among participants improves supply chain linkage efficiency (li et al., 2006; madlberger, 2009). information sharing enables businesses to make better decisions regarding predicting, placing orders, and planning production and material inputs based on inventory, demand, and supply capacity data. in addition to reducing predicting uncertainty and risk, information sharing and greater cooperation have several additional benefits (li et al., 2006; zhou et al., 2003). regarding this topic, the authors hypothesize: h5: information sharing among participants is directly proportional to the efficiency of supply chain linkage in vietnamese agriculture. 2.2.5 the mechanism for mobilizing and using financial resources and extroverted culture successful firms do not have a common structure or management style; they achieve success by adjusting their structures and management styles to the business environment. in other words, organizational structure and management style are significant aspects that might influence the performance of an organization. tosi jr et al. (1984) expanded the notion of randomness by proposing three situational aspects that influence the performance of agbioforum, 24(2), 2022 | 179 yen, phuong, linh, hung, giap, huong, hang and dung. — the impacts of the mechanism for mobilizing and using financial… organizations: (1) persons and organizations; (2) strategic decisions and organizational design; and (3) organizational culture. organizational culture is most influential because it shapes attitudes, values, and principles. in the contemporary context of companies engaging in the supply chain linkage in vietnamese agriculture, and to examine the effect of the mechanism for mobilizing and utilizing financial resources on the extroverted cultures of chain participants, this study proposes: h6: the mechanism for mobilizing and using financial resources is directly proportional to the extroverted culture of participants of the supply chain linkage in vietnamese agriculture. 2.2.6 the correlation between the extroverted culture of participants and the efficiency of the supply chain as a process, supply chain linkages encourage enterprise cooperation with suppliers and customers and even extend to promote enterprise cooperation with upstream suppliers and downstream customers (fawcett et al., 2002). consequently, based on the contrast between extroverted and introverted cultures, supply chain linkage might be characterized as more extroverted than introverted. a business with an extroverted culture prefers to tolerate environmental risk to interact with and adapt to its surroundings. in contrast, businesses with an introverted culture tend to prioritize internal resources over extending relationships (denison et al., 1991). therefore, extroverted firms may find it easier to promote connectivity amongst supply chain members than introverted organizations. consequently, it is hypothesized: h7: extroverted participants' culture is directly proportional to the efficiency of supply chain linkage in vietnamese agriculture. 2.2.7 integration in supply chain and information sharing among participants for an organization to share its internal information with other organizations (suh et al., 2013), there must be a close relationship between these entities, a sort of promised alliance. integration in the supply chain results in strategic collaborations between numerous chain players, and these partnerships facilitate the sharing of accurate and timely information. (ipek, 2011; li et al., 2006; yeung et al., 2009). li et al. (2006) found that it is possible to determine the extent of information exchange in a supply chain by evaluating its level of integration. regarding this topic, this study hypothesizes: h8: integrations are directly proportional to the integration of supply chain linkage in vietnamese agriculture. 2.2.8 extroverted culture and information sharing among participants all enterprises in the supply chain could receive benefits such as more efficient use of resources by enhancing their competitive advantages (cooper et al., 1997). enterprises also exhibit dynamism in their supply chain links. therefore, dynamic businesses with high adaptability tend to foster cooperation with supply chain partners. these enterprises frequently exhibit the following traits: growth aspiration, utilization of external resources, efforts, and environmental adaption. these are qualities of a company with a dynamic culture (denison et al., 1991). in contrast, firms with a culture that emphasizes stability prioritize internal efficiency, synchrony, and conservatism. these businesses frequently face numerous obstacles when attempting to adapt to change. consequently, this study hypothesizes: h9: extroverted culture is directly proportional to information sharing among participants of supply chain linkage in vietnamese agriculture. figure 1: proposed model information sharing among participants efficiency of supply chain linkage mechanism for mobilizing and using financial resources and integration in supply chain extroverted culture h2 (+) h4 (+) h3 (+) h6 (+) h7 (+) h1 (+) h5 (+) h8 (+) h9 agbioforum, 24(2), 2022 | 180 yen, phuong, linh, hung, giap, huong, hang and dung. — the impacts of the mechanism for mobilizing and using financial… 3. research method 3.1 research scale this research proposes a model with the target variable being the efficiency of supply chain linkage; the independent variable being the mobilization and utilization of financial resources; and the moderating variables being supply chain integration, information sharing among participants, and extroverted culture. in the theoretical model, all research concept scales are multivariate scales. on a 5-point likert scale, the following variables are measured: strongly disagree (1); disagree (2); normal (3); agree (4); strongly agree (1). (5 points). indicators of scale variables were modified based on previous research. table 1: sources of scales no. variable abbreviation number of observations sources of scales: 1 the mechanism for mobilizing and using financial resources and extroverted culture mec 5 doan (2017); hoang (2018) 2 integration in the supply chain isc 15 ipek (2011) 2.1 integration with suppliers ins 6 2.2 integration with customers inc 4 2.3 integration within the enterprise inw 5 3 information sharing among participants isp 6 simatupang et al. (2005); chennamaneni (2006) 4 extroverted culture exc 5 cameron et al. (1999); naor et al. (2008) 5 the efficiency of supply chain linkage esc 9 liu (2010) 5.1 operational cost efficiency opc 5 5.2 response res 4 3.2 research sample research samples were randomly selected with relative stratification based on provinces and localities in all three regions of vietnam: northern, central, and southern. the study subjects are specialists and managers from agricultural supply chain linking organizations. the research utilized in-person and online surveys, with 800 survey forms distributed, 651 replies, and 603 valid responses used for analysis. according to a study by hair jr et al. (1998) on predicted sample size, the minimum sample size is five times the total number of observed variables, where the number of observations is forty, and the sample size of 603 samples fits the requirements for analysis. the duration of data collection was from february to august 2022. table 2: sample demographics no. location expected sample size collected sample size valid responses used in the analysis percentage (%) 1 northern region 300 216 195 32.34 2 central region 300 267 248 41.13 3 southern region 200 168 160 26.53 total 800 651 603 100 3.3 data analysis the quantitative method was employed for the research. after data collection, it is cleansed and analyzed using spss and amos. the correlation coefficient of the total variable must be better than 0.3, and cronbach's alpha coefficient must be greater than 0.7 when assessing the reliability of the scales. in addition, if the value of cronbach's alpha if item deleted exceeded the cronbach's alpha coefficient of a variable, this type of observed variable should be reconsidered; next, exploratory factor analysis (efa) was used to determine "convergent validity" and "discriminant validity of the scale." factor loading must be greater than 0.5; kmo coefficient must be greater than or equal to 0.5; sig value must be equal to, or less than 1; and the percentage of variance extracted must be greater than or equal to 50 percent. varimax factor rotation is the factor extraction method. finally, hypotheses are tested by examining the sem model using the chi-square/df should be less than 5 hair jr et al. (1998); p should be less than 0.05; gfi, tli, and cfi should be more than 0.8 (segars & grover, 1993); and rmsea should be less than 0.08. (taylor et al., 1993). 4. research result and discussion 4.1 evaluate the scale's reliability the cronbach's alpha test findings demonstrate the scale's reliability and the study's data, as cronbach's alpha coefficients of all variables exceed 0.70. res1's cronbach's alpha coefficient if the item was deleted was 0.907, which is greater than res's cronbach's alpha coefficient (0.889). therefore, to improve the scale's fit, the res1 variable was eliminated. 4.2 efa analysis after testing the scale's fit, this research conducted an exploratory factor analysis (efa) on independent, moderating and dependent variables. the results show that the data is eligible for analysis because loading factors > 0.5; kmo coefficient >= 0.5 and <=1; p-value < 0.05; percent of variance extracted > 50% and two conditions were met, which are "convergent validity" (observed variables converge on a common factor) and "discriminant validity" (observed variables are more relevant to one factor than to others). agbioforum, 24(2), 2022 | 181 yen, phuong, linh, hung, giap, huong, hang and dung. — the impacts of the mechanism for mobilizing and using financial… table 3: evaluation of the scale with cronbach's alpha coefficient no. variable abbreviation cronbach's alpha coefficient 1 the mechanism for mobilizing and using financial resources and extroverted culture mec 0.930 2 integration with suppliers ins 0.883 integration with customers inc 0.800 integration within the enterprise inw 0.901 3 information sharing among participants isp 0.922 4 extroverted culture exc 0.860 5 operational cost efficiency opc 0.960 response res 0.907 table 4. efa analysis result efa analysis kmo values p-value extracted variance loading factor conclusion independent variables and moderating variables 0.930 0.000 69.583 all are greater than 0.5 satisfy analysis requirements dependent variable 0.934 0.000 83.692 all are greater than 0.5 satisfy analysis requirements table 5. rotation matrix in efa analysis for independent and moderating variables indicator component 1 2 3 4 5 6 isp3 0.839 isp6 0.818 isp1 0.798 isp2 0.788 isp4 0.768 isp5 0.690 ins5 0.775 ins1 0.767 ins3 0.759 ins2 0.733 ins4 0.731 ins6 0.694 mec5 0.837 mec2 0.832 mec4 0.818 mec1 0.801 mec3 0.793 inw5 0.834 inw2 0.798 inw3 0.787 inw4 0.782 inw1 0.711 exc3 0.820 exc2 0.816 exc4 0.773 exc5 0.674 exc1 0.641 inc2 0.772 inc4 0.755 inc3 0.734 inc1 0.724 4.3 cfa analysis analysis shows that the model fits with research data, chisquare value = 2659.347; df = 674; chi-square/df=3.946 (< 5); p= 0.000 (< 0.05); gfi= 0.814 (> 0.8); tli = 0.893 (> 0.8); cfi= 0.903 (> 0.8); rmsea= 0.070 (< 0.08). 4.4 structural equation modeling (sem) analysis we found that the composite indexes meet the requirements by conducting sem on the research model. to specify, chi-square= 2693.973; df= 688; chisquare/df= 3.916 (< 5); p=0.000 (< 0.05); gfi = 0.813 (> 0.8); tli= 0.894 (> 0.8); cfi= 0.901 (> 0.8); rmsea= 0.070 (< 0.08). estimating relationships in the model shows that the research model is appropriate. all hypotheses with p-value less than 0.05 are accepted. to be specific, hypothesis h1 examining the impact of the mechanism for mobilizing and using financial resources on the efficiency of supply chain linkages in the agricultural sector, with a p-value of 0.000 (< 0.05) and positive regression weight (0.573), is accepted. therefore, it can be concluded that the mechanism for mobilizing and using financial resources is directly proportional to the efficiency of supply chain linkage in vietnamese agriculture. this result is similar to the studies of lambert et al. (2000); ammons et al. (2001). agbioforum, 24(2), 2022 | 182 yen, phuong, linh, hung, giap, huong, hang and dung. — the impacts of the mechanism for mobilizing and using financial… figure 2: sem analysis h2 and h3 are accepted with p-value < 0.05 and positive regression weights (0.352 and 0.296). thus, it is concluded that the mechanism for mobilizing and using financial resources is directly related to integration in the supply chain, and integration in the supply chain is also directly proportional to the efficiency of the supply chain linkage of vietnamese agriculture. these results agree with studies by habib et al. (1991); williams (1992). hypotheses h4 and h5 are accepted with p-value < 0.05 and positive regression weights (0.183 and 0.110). thus, it is concluded that the mechanism for mobilizing and using financial resources is in direct proportion to information sharing among participants, and information sharing among participants is also in direct proportion to the efficiency of the supply chain linkage of vietnamese agriculture. these conclusions are in agreement with the studies of zhou et al. (2003); li et al. (2006); madlberger (2009); ipek (2011). similarly, with p-value < 0.05 and positive regression weights are 0.466 and 0.176, respectively, which are greater than 0, the research result shows that hypotheses h6 and h7 are accepted. thus, it is concluded that the mechanism for mobilizing and using financial resources is in direct proportion to the extroverted culture of participants and, thereby, is in direct proportion to the efficiency of the supply chain linkage of vietnamese agriculture. these conclusions are in agreement with studies of tosi jr et al. (1984), denison et al. (1991), and fawcett et al. (2002). as a result, as all hypotheses from h1 to h9 are accepted, the research revealed that the mechanism for mobilizing and utilizing financial resources has both direct and indirect effects on the efficiency of supply chain linkages in vietnamese agriculture, with intermediaries including supply chain integration, information sharing among participants, and outgoing culture. these conclusions constitute this study's theoretical and practical contributions, as they demonstrate the significance of the system for mobilizing and utilizing financial resources in relation to the agriculture sector's supply chain linkage efficiency. specifically, they have demonstrated the function of integration in the supply chain and extroverted culture as a mediator. these are crucial building blocks for future study. agbioforum, 24(2), 2022 | 183 yen, phuong, linh, hung, giap, huong, hang and dung. — the impacts of the mechanism for mobilizing and using financial… in addition, a significant level of less than 0.05 and positive regression weights (0.530 and 0.311) indicate that integration in the supply chain and extroverted culture are directly proportional to information sharing among players in the vietnamese agriculture supply chain. these findings concur with those of cooper et al. (1997); li et al. (2006); suh et al. (2013); yeung et al. (2009); and ipek (2011). table 6: sem analysis results for relationships in the model theory relationship weight se. cr. p conclusion h1 esc <--mec 0.573 0.035 16.311 0.000 accepted h2 isc <--mec 0.352 0.036 9.833 0.000 accepted h3 esc <--isc 0.296 0.058 5.132 0.000 accepted h4 isp <--mec 0.183 0.052 3.551 0.000 accepted h5 esc <--isp 0.110 0.032 3.494 0.000 accepted h6 exc <--mec 0.466 0.040 11.507 0.000 accepted h7 esc <--exc 0.176 0.032 5.518 0.000 accepted h8 isp <--isc 0.530 0.088 6.018 0.000 accepted h9 isp <--exc 0.311 0.049 6.365 0.000 accepted 4.5 descriptive statistical analysis of research data we did a descriptive statistical analysis to find the average values of the model's variables to ascertain the genuine measurement value and compare it to the conclusions of the data analysis. with an average model factor value of 3.8418 (on a scale from 1 to 5), the extroverted culture of supply chain actors receives the highest ranking. this is pertinent to the broader trend of growing partnerships and establishing ties between enterprises and corporations, which is gaining importance as one of the diplomatic missions of organizations in vietnam. it is arguably a very favorable trend not just for individuals and organizations but also for the long-term, sustainable expansion of the agriculture sector. it will have far-reaching effects on various industries and sectors in vietnam. however, as globalization, and global digitalization, in particular, is occurring, organizations must continue to foster cooperation and long-term relationships with domestic and international organizations to capitalize on the benefits of sector-specific organizations, as well as the potential and opportunities of other relevant resources. integration within the enterprise, which is included in supply chain integration, receives the lowest rating, with an average of 3.4949. (on a scale from 1 to 5). therefore, it may indicate an actual problem in companies: the use of combined resources in many vietnamese organizations might be unsatisfactory, and the linkages between enterprise members are still insufficient. moreover, because of their weak links, many corporate activities are conducted disorganizedly, with little uniformity among member businesses, which hinders the achievement of these objectives. to overcome this issue, firms in the supply chain will need to implement scientific practices. table 7: descriptive statistical analysis of research data 5. conclusion and recommendations this study intends to examine the effect of the method for mobilizing and deploying financial resources on the effectiveness of agricultural supply chain linkages. the research result illustrates the significance of the mechanism for mobilizing and utilizing financial resources in relation to the effectiveness of the agriculture sector's supply chain linkage and represents this study's theoretical and practical contributions. notably, it has demonstrated the mediating function of integration in the supply chain and participants' extroverted culture. in addition, the research validates the direct relationship between integration and extroverted culture and the information sharing of supply chain actors. however, the accidental sampling method can be considered a limitation of the research because it reduces the representativeness of the research samples; additionally, the scope of the research is limited to vietnamese agriculture, but it could be expanded to include other sectors in regional and international contexts. based on research findings, the authors present many suggestions for enhancing the efficiency of agricultural supply chain linkages. variable n minimum maximum mean std. deviation mec 603 1.00 5.00 3.7101 0.72905 isc 603 1.58 5.00 3.6806 0.52494 ins 603 1.33 5.00 3.7794 0.63257 inc 603 1.25 5.00 3.7674 0.64290 inw 603 1.00 5.00 3.4949 0.71567 isp 603 1.00 5.00 3.6202 0.69198 exc 603 1.00 5.00 3.8418 0.65879 esc 603 1.00 5.00 3.7956 0.66319 opc 603 1.00 5.00 3.8113 0.66483 res 603 1.00 5.00 3.7800 0.68136 valid n (listwise) 603 agbioforum, 24(2), 2022 | 184 yen, phuong, linh, hung, giap, huong, hang and dung. — the impacts of the mechanism for mobilizing and using financial… first, in terms of the method for mobilizing and utilizing financial resources, it is required to design a capital mobilization mechanism to diversify the sources of mobilized capital. existing resources must also be adequately deployed, and funding from local and international agricultural assistance programs must be optimized. second, to increase information sharing, there should be incentives for participants in different activities and supply chain segments to share information. participants must demonstrate their commitment to a long-term relationship by exchanging vital resources to foster collective strength and interdependence among members. in addition, a mechanism should be built and maintained to assure member consensus and foster mutual support for developing the shared supply chain. thirdly, participants must be fully aware of the significance of extroverted culture and the promotion of interactions amongst supply chain participants in terms of extroverted culture. based on equality and mutual benefit, organizations should take more significant initiatives to promote involvement in the supply chains of global agriculture. thank you: the article uses the research results of the ministerial-level project "digital transformation in agriculture in vietnam" code b2021 tdv 06, chaired by vinh university. reference ammons, d. n., coe, c., & lombardo, m. 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(2020) note, migrant laborers have endured a great deal of hardship due to obstacles such as living conditions, transportation, access to support mechanisms, and employment. governments across the globe, particularly china, reacted swiftly to the negative effects of the pandemic by implementing various forms of relief measures for the underprivileged, such as cash transfers, free food, child allowances, shelter, employment support, financial aid, and business loans, etc. (pan et al., 2020). figure 3 depicts the change in gdp throughout the covid-19 period. several sophisticated technologies are used to extract data from various sources to learn more about the topic (rismawaty arunglabi et al., 2022; carhuancho et al., 2023). 2. urbanisation and pandemic in china china was the location of the earliest known case of covid19, discovered in wuhan (liu et al., 2020). this respiratory disease has spread nationwide, creating a national and international public health emergency. mckibbin et al. (2021) and guan et al. (2020) report that an increasing number of individuals with the same disease symptoms have been observed and documented in many other nations. on january 30, 2020, the world health organization (who) proclaimed covid-19 a public health emergency of international concern, and its status was upgraded to a global pandemic (jeet et al., 2020). however, since march 19, 2020, wuhan has not reported any new cases of the pandemic for nearly five days in a row, thereby transferring the status of the epicenter to countries such as italy, the united states, spain, and even germany. mailto:s2153494@siswa.um.edu.my mailto:mariney@um.edu.my agbioforum, 24(3), 2022 | 121 zhang and yusoff. — study on the influential factors of covid-19 pandemic in urbanisation in … figure 1: impact of covid-19 on society figure 2: percentage of population pushed below the poverty line in 2030. figure 3: change in gdp in asian countries due to the pandemic 0 10 20 30 40 50 60 70 80 90 socio economic impact socio economic impact on business access to health care faciltities impact on mental and physical health uncertainity % of population affetcted east asia and pacific 44% south asia 23% latin america and carribbean 10% middle east and north africa 8% saharan africa 8% europe and central asia 6% high income countries 1% -15 -10 -5 0 5 10 g ro w th i n g d p 2020-21 2021-22 agbioforum, 24(3), 2022 | 122 zhang and yusoff. — study on the influential factors of covid-19 pandemic in urbanisation in … figure 4: status of covid-19 in china and other countries by who (liu et al., 2020) figure 5: urbanization rate in china agbioforum, 24(3), 2022 | 123 zhang and yusoff. — study on the influential factors of covid-19 pandemic in urbanisation in … the cumulative verified cases in china and other countries are depicted in figure 4. wei et al. (2018) found that the number of confirmed cases skyrocketed during the spring festival travel rush when a significant proportion of the population returned home. numerous unrecorded infections in this mobile population contributed to the rapid dissemination of the virus (li et al., 2020). the epidemic circumstance caused a nationwide chain reaction of population movement. population flow is china's most significant geographical process after its reforms (zhu et al., 2014), which subsequently evolved into a social phenomenon that facilitated urbanization. population movement on a larger scale influences the system of transportation networks, social culture, and industrial development. figure 5 depicts china's urbanization. during the pandemic, rural laborers have two options: move to large cities from their hometowns or move to small towns close to their hometowns (li, 2015). this behavior represented two models: urbanization nearby and urbanization at a distance. in the former model, rural residents move to communities that serve as regional service hubs but are still close to their homes. people with non-agricultural occupations fall into this category as they seek new employment and business opportunities (su et al., 2016). in contrast, remote urbanization refers to rural residents' permanent or temporary migration to larger cities far from their hometowns. they become permanent residents of new cities and are the new community of rural residents who have moved to the city (long et al., 2009). due to covid, urbanization at a distance became the primary conversion mode at a larger mobility scale. however, a development gap exists between metropolitan and rural areas due to a dual urban-rural structure. in 2020, the per capita income of china's urban residents was 43,834 yuan. at the same time, the income of rural residents was significantly reduced up to 17,131 yuan. this created a disparity between less established and developed regions. during the initial phase of the pandemic, the largest cities in china, such as beijing and wuhan, were hardest affected per capita. the epidemiological models predicted that if adequate and timely control measures were not implemented, the disease would swiftly spread in urban and metropolitan areas (stier et al., 2020). therefore, many severely affected regions were subjected to stringent containment measures such as trade and commerce closures and travel restrictions. in addition, adherence to social distance contributed to declines in mobility by various modes of transportation in major cities (hudecheck et al., 2020). with a comparatively low incidence of disease infections, only a few dense cities could control the pandemic. most chinese cities rely on public transportation and serve as a significant transmission agent (florida et al., 2020). the efforts to track down the contract confirm this. disease transmission was found to be lower in trains than in other modes of transportation due to ventilation systems. people in the oecd avoided public transportation, resulting in less congested travel. in addition, it is a fact that contact tracing has not identified a significant number of transmissions in the transportation system due to its dispersed nature. due to their connectivity, large chinese cities encountered more cases during the initial phase of the pandemic. 3. literature survey this section overviews the relevant studies and factors associated with epidemic urbanisation. wuhan (lu liu, 2020) investigates the primary factors that influence the proliferation of virus transmission in the context of urbanization. the results of the study indicate that distance from the pandemic's epicenter has a significant negative correlation with its spread. urbanization and population density are also negatively associated with early-stage dissemination. based on prevalence, fatality, trends, and incidence, epidemiological data from 17 countries during the first 90 days of closure were analyzed (shivam gupta et al., 2020). the study revealed that the fatality rate has a positive correlation with the ratio of the geriatric population but a weak correlation with the urban population. due to control measures such as quarantine, isolation, and social distancing, the pandemic has challenged urban planning and thought (avetisyan et al., 2020). the study focuses on the urban economy, design, and planning. moreover, constructing smart cities may also mitigate the pandemic's effects. also, lock-down significantly impacts the spread of the pandemic in globalised cities, financial hubs, and political flashpoints (hesse et al., 2020). case studies of dublin and luxembourg are presented in this work. their urban development is uncertain, and the emergence of a 'new normal' poses a challenge to these cities governed by the market. the conflict between covidcapitalist urbanization and the prioritization of rentiers over workers has emerged as a potential study area (madden, 2020). unlike the landlords, the active community was most affected by the transformation of work during confinement and other safety protocols. another area of decline is the distressed investment firms and the debt-ridden real estate market. the catastrophe capitalism is then normalized and rephased. chiris et al. (2020) conducted a comprehensive survey on the redefinition of humanity and operational and conceptual realities during the pandemic. the urban poor were unable to adhere rigorously to safety measures. there was a choice between being famished and susceptible to infection. this work emphasizes the lack of appropriate planning response at all levels. the covid-19 infection data indicates that the disease predominantly spreads in urban and congested areas, with more infections and a higher mortality rate (pethe et al., 2002). expanding cities are more vulnerable, highlighting the need for improved and increased investments in city planning, public health, and enhancing the lifestyle of ghetto dwellers, among other areas. agbioforum, 24(3), 2022 | 124 zhang and yusoff. — study on the influential factors of covid-19 pandemic in urbanisation in … patidar et al. (2020) comprehensively analyze the pandemic's dissemination and urbanization patterns. as a result of high population density, increased urban encroachment, and intra-urban commuting in large slum populations, the pandemic spread considerably more quickly. according to the study's findings, enhancing health infrastructure and adherence to safety protocols are necessary. the comprehensive assessment of urbanization and covid spread identifies three improvement areas: infrastructure, demographic change, and governance (connolly et al., 2020). these were the three most important factors controlling the disease's urban spread. the study also emphasizes the role of the landscape political ecology framework in bringing about socioecological changes in periand suburban areas. diop et al. (2020) examines applying a deterministic susceptible-infected-recovered model to forecast pandemic spread under containment measures. the work focused on analyzing people of various age structures, urbanization, and health comorbidities, among other factors, to determine that the peak due to urbanization may reach very quickly compared to the other two. global evidence demonstrates that urban dwellers have greater contact and exposure (biswas et al., 2020). due to today's relatively high urban population, the pandemic was particularly severe in these areas. the investigation focused on determining the relationship between the spread of the infection and uneven urbanization. tammaru et al. (2023) conducted a comprehensive investigation of the origin, intensity, and destinations of urban migration in estonia during the new crown pandemic. according to the results, urbanization has caused a migration trend, and counter-urban transitions were prominent during the economic downturn caused by the pandemic. this counterurbanization increased family migration to rural areas outside of metropolitan areas. during the covid-19 phase, research was conducted on the determinants of in-migration and net migration into non-metropolitan new south wales (argent et al., 2020). the results indicated that non-metropolitan areas rely less on anti-urbanization mechanisms and are projected to experience greater net migration gains. high population densities are closely related to out-migration, but these changes only affect net migration. 4. research methodology the data for this study was collected from a variety of data sources, including worldometer, kaggle, and other internet-sourced data, between the years 2020 and 2021, as this is the worst covid-19 affected period, from seven cities with varying degrees of urbanization, namely anhui, hubei, hinan, guanigxi, gansu, xinjiang, and shandong. in addition, urbanization data is gathered from various sources, including the china statistical yearbook, the statistical yearbook of provinces and cities, the china health statistical yearbook, the national economic and social development statistical publication, and the national research network database. table 1 displays descriptive statistics for a small number of explanatory variables. table 1: descriptive statistics of the dependent and independent variables used in the study variables mean standard deviation minimum maximum mortality rate 0.593 0.457 0.067 5.679 population density 0.5 0.134 0.004 3.104 age 54 14 15 75 gdp 9.035 0.682 0.057 0.563 expenditure for health 0.063 0.02 0.03 0.172 medical facilities 1.62 0.361 0.589 0.256 building density 0.167 0.102 0.004 0.902 length of roadways 15.928 58.92 0.002 702.3 wastewater disposal 14,927 24,972 258 29,387 solid waste management 56.826 101.927 16.86 875 greeneries 15.108 5.975 3.862 56.932 temperature 5.872 6.926 -10.027 26.93 urban area 503.76 1102.4 4.976 17.0892 air 5.826 0.235 3.918 6.903 the units for measuring the explanatory variables, along with their definition or mode of measurement, are mentioned in table 2. table 2: description of the variables variable description unit mortality rate death rate percentage population density number of people living per unit area person/km2 age age number gdp gross domestic product expenditure for health health expenditure of the residents yuan medical facilities the logarithm of the number of health technicians per 1,000 number building density built up area square meter length of roadways length of built roadway lines km wastewater disposal yearly wastewater disposed 10,000 cubic meters solid waste management yearly solid and municipal waste 10,000 tons greeneries public green space square meter temperature celsius c urban area urban area km air quality measure of air quality ppm it is a technical issue that many laboratory-confirmed patients are not recorded, particularly in the early days of the pandemic (lui et al., 2020). the data is gathered from the seven locations mentioned above. many patients in the epicenter, such as wuhan, race to the local health centers, which are inadequately staffed. this study does not consider these factors. in addition, the literature demonstrates that the proportion of urban and total populations are direct indicators of urbanization (hao et al., 2018). this reflects the rise in population due to urbanization. this paper investigates whether the increase in population proportion has exacerbated the spread of disease. agbioforum, 24(3), 2022 | 125 zhang and yusoff. — study on the influential factors of covid-19 pandemic in urbanisation in … figure 7: covid-19 cases in shangai figure 8: heatmap of covid spread in various chinese cities figure 9: age as a major factor of disease spread in two main cities of china agbioforum, 24(3), 2022 | 126 zhang and yusoff. — study on the influential factors of covid-19 pandemic in urbanisation in … it implies that urbanization leads to overpopulation per unit area but does not include the claim that it leads to more densely packed built areas or buildings. consequently, this is assessed using the ratio of the built-up area in the cities mentioned above to the city's total land area. this refers to the density of the building. age is evaluated as the dependency ratio of the elderly population in the provinces mentioned above because they are more susceptible to disease transmission (bai et al., 2020). as shown in figure 9, individuals in the middle and older age groups are more susceptible to the pandemic, with a high death rate among the elderly. china's aging population has had a significant impact on regional economic growth. consequently, they have greater access to medical consumption, as measured by the city's gross domestic product (gdp) during the covid-19 period (cheshmehzangi et al., 2022). this indicates the significance of public health: the ratio of health expenditures to total economic expenditures represents medical facility expenditures. this is the approximated logarithm of the number of healthcare professionals per 1,000 residents in the city. in addition, the logarithmic value of the number of days with good air quality is included as an explanatory variable. covid-19 is not an exception to the relationship between air quality and virus transmission. 5. methodology this study employs a simple log-linear regression model in which the number of laboratory-confirmed covid-19 patient cases is the dependent variable and other factors are the independent variables. the model is represented by equation 1. 𝐿𝑛 𝑌 = 𝛽0 + ∑ 𝛽𝑖 𝑛 𝑖=1 𝑋𝑖 + 𝜖 (1) in the above equation, y is cases of covid-19 cases. the association between factors considered is indicated as variable x and is enumerable in table 1. ε denotes the stochastic error. though the above model appears simpler, it must be accepted that multiple factors affect the spread of the virus. research illustrates that many influential factors are yet to be discovered and explored. to effectively explore the hidden relationship between factors enumerated in table 1 and the disease spread, the work includes estimating the correlation (cor) among the variables as mentioned in equation 2. = 𝑛(∑ 𝑝𝑦) − (∑ 𝑝) (∑ 𝑦) ((𝑛 ∑ 𝑝2 − (∑ 𝑝) 2 )(𝑛 ∑ 𝑦2 − (∑ 𝑦) 2 )^ 0.5 (2) here y indicates the number of confirmed covid-19 cases, and the value of p is the explanatory variable considered in this study. 6. empirical analysis the computation of the log-linear model's relation between is done more intuitively in this work between various explanatory variables and the number of confirmed pandemic cases. table 3 displays the results of the estimation. the results indicate that the highly urbanized cities of hubei, xinjian, and shangai show a positive relationship between the urbanization factors and the spread of covid-19. thus, urbanization has a positive impact on the spread of the virus. to drill down further, not all factors play a prominent role in spreading the virus. the explanatory variables like greeneries, wastewater management, building density, and gdp do not show statistically significant results in most cities. but in highly urbanized cities, the air quality influences the spread of the virus with good statistical significance. solid waste management positively impacts faster virus spread in urban cities. the medical expenditure did not turn out to be a deciding factor of urbanization which is not coupled with the pandemic spread. further, the correlation analysis between the variables is done according to equation 2. the results are tabulated in table 4. according to the table's correlation analysis, there is a strong correlation between the mortality rate and the number of confirmed cases. additionally, there is a strong correlation between the following pairs: population density and medical facilities, urban area and several cases, and building density and wastewater disposal. in addition, it can be observed that factors such as temperature, medical facilities, population density, urbanization, and air quality have a stronger correlation than the other variables. in contrast, the urbanization measures examined in this study, such as greenery, solid waste management, roadways, and building density, do not demonstrate a significant correlation. these variables cannot be decisive in analyzing the impact of urbanization and covid-19 pandemic in china. 7. conclusions and future works this multidisciplinary study investigates the effect of urbanization on the proliferation of the new crown disease in chinese cities. cities are complex organisms with a large migratory population, making it extremely challenging to study dynamic phenomena such as migration caused by the new crown pandemic. this study examines the relationship between numerous urbanization factors and the spread of the virus in seven major cities with varying levels of urbanization: anhui, hubei, hinan, guanigxi, gansu, xinjiang, and shangai. the explanatory variables considered in this study are derived from a vast body of research. using a straightforward log-linear regression model, the relationship among the factors of urbanization is revealed. detailed empirical studies and statistical significance of the factors indicate that variables agbioforum, 24(3), 2022 | 127 zhang and yusoff. — study on the influential factors of covid-19 pandemic in urbanisation in … such as temperature, air quality, age, population density, and the availability of medical facilities are positively associated with the spread of the virus. other urbanization characteristics, such as roadways, waste management, and vegetation, have no significant implications. also, correlation analysis is performed between the variables to investigate their connectivity. this analysis also yields a few additional significant findings, such as that urbanization and air quality are strongly correlated. nonetheless, this research employs data from seven major cities with extensive explanatory variables. this work can be expanded in the future to incorporate additional variables. table 3: empirical estimation results with dependent variable log (average number of confirmed covid -19 cases the year 20202021) variables anhui hubei hinan guanigxi gansu xinjiang shangai mortality rate 0.673 (-0.02) 0.862 (0.04) 0.527 (-0.03) 0.552 (-0.03) 0.569 (-0.002) 0.756 (0.12) 0.801 (0.013) population density 0.845(-0.002) 0.836 (0.02) 0.634 (-0.01) 0.664 (-0.03) 0.701 (0.002) 0.724 (0.001) 0.847 (0.01) age 0.056 (-0.003) 0.673 (0.012) 0.602 (-0.01) 0.473 (-0.01) 0.476 (-0.042) 0.563 (-0.36) 0.678(-0.01) gdp 0.023(-0.001) 0.243(-0.003) 0.351 (-0.02) 0.346(-0.03) 0.263(-0.032) 0.342 (0.001) 0.546 (0.002) expenditure for health 0.452 (-0.27) 0.562(-0.25) 0.528 (-0.025) 0.372(-0.023) 0.432(-0.032) 0.521(-0.023) 0.534 (0.001) medical facilities 0.452(-0.002) 0.375(-0.002) 0.398 (-0.051) 0.273 (-0.02) 0.345 (-0.023) 0.356(0.001) 0.456 (0.005) building density 0.037 (-0.028) 0.028(-.001) 0.367 (-0.001) 0.345 (0.001) 0.341 (0.001) 0.0452 (0001) 0.563 (0.002) length of roadways 0.035 (<0.001) 0.352 (0.001) 0.054 (-0.23) 0.046 (-0.034) 0.062(-0.023) 0.531 (0.001) 0.672 (0.001) wastewater disposal 0.36 (<0.001) 0.45 (0.002) 0.342 (<0.001) 0.262 (<0.001) 0.356 (<0.001) 0.572 (0.001) 0.621 (0.002) solid waste management 0.256 (<0.001) 0.535 (0.002) 0.432 (-0.011) 0.382 (0.031) 0.406 (<0.001) 0.576 (0.001) 0.702 (0.001) greeneries 0.345 (-0.01) 0.335 (-0.023) 0.026 (-0.023) 0.452 (-0.93) 0.392 (-0.025) 0.244 (-0.0123) 0.302 (-0.01) temperature 0.534 (0.045) 0.567 (0.075) 0.673 (0.052) 0.782 (0.002) 0.832 (0.014) 1.076 (0.001) 1.028 (0.001) urban area 0.453 (0.014) 0.563 (0.001) 0.473 (<0.001) 0.376 (0.014) 0.482 (<0.001) 0.592 (0.001) 0.473 (0.001) air 0.344 (0.001) 0.465 (0.001) 0.452 (0.013) 0.354 (0.002) 0.342 (0.001) 0.453 (<0.001) 0.520 (0.001) table 4: correlation analysis between the explanatory variables variable a b c d e f g h i j k l m n o a 1 0.764 0.43 -0.76 -0.45 0.478 -0.63 -0.034 -0.043 -0.45 -0.45 0.442 -0.98 -0.46 0.825 b .* 0.054 -0.98 0.054 0.0432 0.653 0.032 -0.742 -0.25 -0.532 -0.032 0.456 -0.345 -0.53 0.35 c * * 1 -0.034 -0.735 0.432 -0.043 -0.675 -0.76 -0.064 -0.456 -0.754 0.421 -0.064 0.543 d * * * 1 0.563 0.456 -0.56 -0.563 -0.452 -0.452 -0.53 0.452 -0.35 0.242 0.364 e * * * * 1 -0.36 0.026 0.034 -0.271 0.034 0.24 -0.24 -0.38 -0.532 0.23 f * * * * * 1 0.002 0.023 -0.043 0.034 0.234 -0.341 0.345 -0.24 0.245 g * * * * * * 1 0.035 0.462 -0.47 -0.25 -0.87 0.229 -0.441 0.451 h * * * * * * * 1 0.003 0.035 -0.341 -0.46 0.346 -0.461 0.34 i * * * * * * * * 1 0.28 0.026 0.124 0.043 0.036 0.24 j * * * * * * * * * 1 0.0234 -0.023 0.021 -0.024 0.21 k * * * * * * * * * * 1 -0.27 0.024 -0.27 0.324 l * * * * * * * * * * * 1 0.56 -0.756 0.137 m * * * * * * * * * * * * 1 -0.46 0.73 n * * * * * * * * * * * * * 1 0.45 o * * * * * * * * * * * * * 1 ***amortality rate, bpopulation density, cage, dgdp, eexpenditure for health, fmedical facilities, g building density, hlength of roadways, iwastewater disposal, jsolid waste management, kgreeneries, l temperature, murban area, nair quality, onumber of confirmed cases (o) reference argent, n., & plummer, p. 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(2019), preserving these cultural traditions and ideas is especially important in rural communities. this is because, in rural communities, these traditions and beliefs are often deeply embedded in consciousness and intangible cultural heritage. intangible cultural legacy is the kind of heritage passed down from generation to generation, including customs, rituals, traditions, and knowledge. there is a possibility that activities such as traditional singing, dancing, telling stories, and crafting will be featured. not only are these rituals essential for the maintenance of cultural identity, but they are also essential for establishing a sense of community and belonging in people who live in rural areas. according to lees et al. (2023), the foundation of a community's identity is often found in its intangible history. this legacy helps maintain social cohesion and provides a feeling of continuity and significance. the protection of intangible cultural assets has a positive effect, economically speaking, on rural communities. this has the potential to contribute to the growth of rural areas over the long run as well as the economy of the surrounding area. mailto:gs62261@student.upm.edu.my https://orcid.org/0009-0003-0453-8449 mailto:megat@upm.edu.my https://orcid.org/0000-0003-0065-9983 mailto:karmilah.abdullah@upm.edu.my https://orcid.org/0000-0002-1556-2028 mailto:gs60308@student.upm.edu.my https://orcid.org/0009-0002-6761-670x mailto:cherryxf99@yxnu.edu.cn https://orcid.org/0000-0001-6147-6959 mailto:gs58941@student.upm.edu.my https://orcid.org/0000-0002-7060-1712 mailto:megat@upm.edu.my agbioforum, 25(2), 2023 | 82 wu, yasin, abdullah, zhao, yanmei, li, li — the spread of intangible cultural heritage in the rural agricultural environment … the potential for rural towns to balance economic growth and environmental preservation is made possible by sustainability, a crucial factor for these areas. sustainable methods ensure that the needs of the current generation are met without endangering the ability of future generations to meet their requirements (mketo et al., 2022). for many different reasons, rural areas require sustainable practices. first, most people living in rural areas live from activities that include natural resources, such as farming and forestry. second, many people who live in rural areas do not have access to essential resources and services such as healthcare and education. according to cheetham et al. (2023), one of how sustainability helps solve these problems is by supporting community-driven initiatives that broaden people's access to relevant resources and services. last but not least, people living in rural areas are frequently more vulnerable to the effects of climate change, such as changes in precipitation patterns and extreme weather events. according to opoku, dogah, and aluko (2022), sustainability makes communities more resilient to climate change by encouraging activities that cut greenhouse gas emissions and boost communities' capacity to adapt to changing circumstances. the intangible cultural heritage (ich) of rural communities is essential to preserving their cultural identities and the cohesion of their societies. the dissemination and protection of ich can also assist in ensuring the continued sustainability of rural communities over the long term. rural communities can aid in the propagation and preservation of ich by introducing tourism activities that are environmentally responsible and promote their cultural heritage. this can result in financial benefits and help preserve their intangible cultural practices and transmit those customs to tourists (díazandreu & pastor pérez, 2023). creating social cohesion and enriching cultural identities within rural communities are two ways community-led initiatives to protect ich contribute to improved sustainability. ich has developed several methods that are closely related to the natural world. according to shaker and mackay (2021), the utilization of natural resources responsibly leads to the maintenance and transfer of these cultural practices to subsequent generations. entrepreneurship in the cultural sector not only serves to disseminate and maintain ich but also significantly contributes to the continued existence of rural communities. rural communities have the potential to encourage the preservation of intangible cultural traditions as well as the growth of those practices by creating economic opportunities in the surrounding area (haifeng & xinzheng, 2022). farming methods used for generations are often ecologically sound and contribute to conserving regional cultural heritage. promoting local food systems benefits rural agricultural communities since it helps preserve the communities' traditional knowledge and practices. according to mah et al. (2019), one way to contribute to protecting intangible cultural property is through promoting and educating individuals about the consumption of regional and traditional food. when planning for land use, it is important to consider the cultural heritage of rural communities. this can be achieved in part by including the community in locating and safeguarding significant cultural places, as well as by ensuring that decisions about land use and agricultural practices do not adversely affect these sites. an investment in sustainable agriculture benefits rural communities and is good for the environment, which supports agriculture at the same time. this can include providing farmers with training and support and promoting sustainable agricultural practices such as agroforestry and organic farming (cetegen & stuber, 2021). this area of research has several open questions and certain limits that need to be solved. the lack of available empirical data is one of the major limitations of this study area, and it's also one of the most crucial. even though there haven't been many studies conducted on the topic, the vast majority of those carried out have relied on qualitative data or case studies as their primary source of information. it is necessary to collect additional quantitative data to paint a picture that is more true to life about the distribution of intangible cultural assets in rural agricultural areas. most studies in this field have not given enough thought to this facet of the topic, even though the impact of the global economic environment on the distribution of intangible cultural assets in rural agricultural areas is an important subject for research. there is a pressing need for additional research, particularly concerning the influence that the global economic climate has on the transmission of intangible cultural assets. another gap in this area is underestimating government policies' role in supporting the spread of intangible cultural assets in rural agricultural settings. this is a gap in the research done in this area. although relatively few studies have investigated government policy's role, the vast majority of these investigations have not given this component the appropriate amount of study. the purpose of this study is to investigate the propagation of intangible cultural assets in contemporary china's rural agricultural environment while considering the impact of an epidemic economic climate. in this context, the study will investigate the elements that contribute to the dissemination of intangible cultural legacy, as well as the problems that prevent the transmission and maintenance of this asset. • to identify and classify the different types of intangible cultural heritage present in the rural agricultural environment of modern china. • to analyze the impact of the epidemic economic environment on the spread of intangible cultural heritage in rural agricultural communities in china. • to investigate the factors that contribute to the spread of intangible cultural heritage in the rural agricultural environment of modern china, including the role of government policies, community organizations, and individuals. • to identify the challenges that hinder the transmission and preservation of intangible cultural heritage in the rural agricultural environment of modern china. • to propose strategies and recommendations to promote the spread, transmission, and preservation of intangible cultural heritage in the rural agricultural environment of modern china under the epidemic economic environment. agbioforum, 25(2), 2023 | 83 wu, yasin, abdullah, zhao, yanmei, li, li — the spread of intangible cultural heritage in the rural agricultural environment … the investigation into the transmission of intangible cultural legacy in modern china's rural agricultural setting within the context of pandemic economic conditions offers a significant contribution in various ways. to begin, it provides a comprehensive analysis of the contemporary condition of intangible cultural assets in the rural agricultural environment of modern china. in the context of the current economic climate, this analysis sheds insight into the myriad factors that influence the propagation and preservation of intangible cultural assets. second, it analyzes how economic factors such as poverty, unemployment, and the decline of traditional agricultural techniques affect the transmission and preservation of intangible cultural assets. these factors include conventional agricultural techniques. thirdly, the study gives light on the policies that may be implemented to foster the growth and maintenance of intangible cultural assets in the modern agricultural context of rural china. this is an important contribution to the field. these efforts include deploying cultural education programs, using digital technologies to document and convey cultural information, and developing tourism projects showcasing rural farming communities' distinct cultural history. 2. literature review and hypotheses development spread of intangible cultural heritage on preservation of intangible cultural heritage in rural communities the expansion of intangible cultural heritage (ich) can affect the preservation of ich in rural communities by fostering greater knowledge and interest in activities that are considered to be customary. according to tzima et al. (2020), promoting ich through festivals, museums, and other cultural events can enhance awareness of the relevance of traditional practices and the necessity for preserving their heritage. this may result in increased support for local efforts to conserve and transmit ich and the passage of legislation and programs to assist these efforts. additionally, this may lead to increased support for local efforts to preserve and transmit ich. the preservation of ich in rural communities is negatively impacted by the spread of ich, which has a negative influence overall. according to zheng (2023), the commercialization and commodification of ich may result in the dilution of the concept and a loss of its originality. this is an especially severe issue in rural areas, as traditional ways of life there are less well known and therefore more susceptible to being influenced by outside forces. according to arcos-pumarola, paquin, and sitges (2023), the proliferation of ich can commonly result in arguments between several communities or groups regarding ownership and control of cultural traditions. one strategy for reducing the impact of these unintended consequences is to involve local populations in the marketing and distribution of ich. community-based projects involving local people in the documentation and transmission of ich can help maintain its validity and sustainability, as quintero-angel, mendoza-salazar, and martinez-giron (2022) noted. these projects can help to keep ich alive and well. according to halder and sarda (2021), including members of the local community in planning and organizing cultural events is one way to ensure that members of the community's viewpoints and needs are considered. h1: the spread of intangible cultural heritage significantly impacts the preservation of intangible cultural heritage in rural communities. spread of intangible cultural heritage and sustainability in rural communities it is essential for the social, cultural, and economic growth of rural communities to preserve their intangible cultural heritage (ich). according to barrientos et al. (2021), ich fosters a sense of identity and belonging among community members, leading to increased social cohesion and deeper ties within the community. according to chen, suntikul, and king (2020), ich brings in cash for rural areas through tourism and the sale of cultural artifacts. the ich can be transmitted through several pathways, such as the internet, the media, and migration (sanchez et al., 2023). the rising use of technology has made it possible for ich to reach a bigger audience, which in turn provides opportunities for rural communities to display their cultural heritage globally. however, the development of ich may result in the appropriation of cultural practices and the commercialization of traditional activities, both of which may have an adverse effect on the livelihood of rural communities. the increasing prevalence of ich can potentially impact, for better or worse, rural communities' long-term viability. on the one hand chen, suntikul, and king (2020), found that promoting ich can increase tourism and economic opportunities for rural communities. preserving cultural artifacts and musical styles, for instance, can aid the local economy while providing employment opportunities. however, the expansion of ich may result in the loss of traditional knowledge and practices due to the practices' increasing commercialization and adaptation to satisfy the expectations of tourists. h2: the spread of intangible cultural heritage significantly impacts sustainability in rural communities. 3. rural agricultural environment and preservation of intangible cultural heritage in rural communities according to moser et al. (2021), the cultural history of rural communities is intrinsically linked to agricultural practices. agricultural techniques such as crop rotation, animal husbandry, and seed selection are examples of practices frequently handed down from one generation to the next and constitute a large part of the cultural character of rural communities (shen et al., 2022). the preservation of ich in agriculture contributes to the sustainability of rural communities by assisting in developing local food systems and maintaining traditional agricultural methods. in rural areas, the agricultural environment may have an effect, either for the better or for the worse, on how ich is preserved. on the other hand, using traditional agricultural practices can help create an environment that is more amenable to the preservation of ich. according to ouassanouan et al. (2022), traditional irrigation and soil agbioforum, 25(2), 2023 | 84 wu, yasin, abdullah, zhao, yanmei, li, li — the spread of intangible cultural heritage in the rural agricultural environment … management methods help maintain the ecological balance of agricultural areas, which is essential for the upkeep of ich. on the other hand, contemporary agricultural practices, such as the use of monoculture farming and pesticides, have the potential to have a detrimental effect on the conservation of ich (sgroi, 2022). it is also essential to have agricultural extension programs to protect ich in rural communities. by incorporating ich into their programming, agricultural extension agents can contribute to disseminating information regarding the significance of cultural heritage in agriculture and the promotion of traditional farming practices (teza, trevisani, & pesci, 2019). in addition, agricultural extension agencies can provide farmers with technical assistance in protecting ich. this assistance may include guidance on seed selection and soil management techniques. h3: rural agricultural environment significantly impacts the preservation of intangible cultural heritage in rural communities. rural agricultural environment and sustainability of rural communities the sustainability of rural communities is affected in various ways—both positively and negatively—by agricultural activity in rural areas. creating new employment opportunities and potential sources of revenue is one positive outcome of this. according to jamshidi, imani, and delavar (2022), agriculture offers employment opportunities to many rural populations. as a result, agriculture contributes to the reduction of poverty and the development of livelihoods. in addition, agriculture makes a major contribution to the surrounding area's economy and has the potential to facilitate the growth of other industries, such as tourism (sgroi, 2022). the rural agricultural environment may also have a detrimental effect on the continued viability of the rural community. there is a significant problem with the deterioration of natural resources like land, water, and biodiversity. inappropriate use of natural resources in agricultural practices can lead to soil erosion, water pollution, and biodiversity loss, as stated in the research conducted by patra et al. (2022). this has the potential to have long-term implications for the health and well-being of rural communities and the economic viability of agriculture as a sector of employment. the effects of climate change on agricultural practices in rural areas are still another concern. according to seijger and hellegers (2023), climate change can affect agricultural production through temperature and precipitation patterns and an increase in extreme weather events such as floods and droughts. in addition, these changes can impact the frequency of these types of weather occurrences. these advances have the potential to have huge economic and social repercussions for rural communities, particularly those whose primary source of income is agriculture. in particular, these trends have the potential to have an impact on rural communities in the united states. h4: rural agricultural environment significantly impacts sustainability in rural communities. awareness and preservation of intangible cultural heritage in rural communities" the general public's education is absolutely necessary to maintain ich in rural communities. according to tzima et al. (2020), the active participation of community people who realize the significance of their cultural heritage is frequently necessary to preserve ich. communities that are ignorant of the significance of ich may not prioritize its preservation or may even actively attempt to eliminate it if they have the opportunity. in addition, raising awareness can play a role in reducing the risk of ich being passed down from generation to generation. according to rahmani and tienken (2022), the active participation of community members who realize the significance of their cultural heritage is necessary to transmit ich. through implementing education and awareness programs, communities can contribute to the continuation and expansion of ich. in addition, awareness can result in the formation of preservation efforts that are driven by the community. according to trichopoulou (2021), community-based methods to preserve ich can be useful in rural communities, which are characterized by traditional cultural practices closely related to the surrounding natural environment. the durability of a community's cultural heritage can be ensured by increasing awareness of the importance of preserving it and enlisting the participation of community members in the planning of preservation initiatives. a key obstacle to the continued operation of ich can also be a lack of awareness of its existence. according to masoud, mortazavi, and farsani (2019) findings, an increase in urbanization and rural globalization may decrease understanding of the significance of traditional cultural activities. this has the potential to undermine ich and reduce support for the institution's continued existence. h5: awareness significantly and positively impacts the preservation of intangible cultural heritage in rural communities. awareness and sustainability of rural communities awareness levels have a significant bearing on whether or not rural towns can remain economically viable martin et al. (2021). note, increasing people's understanding of concerns related to sustainability supports adopting sustainable practices in industries that rely on natural resources such as agriculture, forestry, and others. by encouraging people to engage in environmentally responsible practices, communities may ensure the continued availability of natural resources and protect the financial security of their way of life. as a result of increasing awareness, community-driven sustainability actions are designed and implemented. according to mihardja et al. (2023), efforts pushed by the community are frequently more successful than top-down strategies when creating sustainability. by involving community members in developing sustainability initiatives, communities can increase the likelihood that these initiatives will be tailored to the specific requirements and constraints of their particular setting. awareness also helps to agbioforum, 25(2), 2023 | 85 wu, yasin, abdullah, zhao, yanmei, li, li — the spread of intangible cultural heritage in the rural agricultural environment … promote the conservation of biodiversity and the protection of natural resources. according to giacomarra et al. (2021), increasing one's understanding of the significance of the natural world's biodiversity and resources can help preserve and protect these things. this, in turn, can help ensure that these resources will be accessible to generations in the future. h6: awareness has a significant and positive impact on the sustainability of rural communities. awareness as mediator the importance of acknowledging ich can pave the way for its protection and formulation strategies for its transmission to subsequent generations. in addition, increasing awareness resulted in the creation of encouraging policies and initiatives that promote the preservation of ich. the study by masoud, mortazavi, and farsani (2019) found that the transmission of ich positively impacts the preservation of it in rural people. the increased availability of ich has led to a heightened understanding of its value and relevance, resulting in increased preservation efforts. according to gao and dietze-schirdewahn (2018), the expansion of ich is also responsible for developing new cultural products and services, which might benefit rural communities economically. h7a: awareness mediates the relationship between the spread of intangible cultural heritage and the preservation of intangible cultural heritage in rural communities rural communities' success, in the long run, depends heavily on their ability to raise awareness. according to zikargae, woldearegay, and skjerdal (2022), an increase in one's understanding of the importance of ich can lead to a rise in one's efforts to protect it, contributing to rural communities' economic and cultural sustainability. the proliferation of ich has the potential to be beneficial to the continued existence of rural communities potentially. according to yong (2021), implementing ich has the potential to boost cultural tourism, which in turn can help economically disadvantaged rural communities. in addition, the implementation of ich has the potential to enhance the cultural identities of rural communities, which in turn can strengthen social cohesion and community resilience. h7b: awareness mediates the relationship between the spread of intangible cultural heritage and sustainability in rural communities it is essential for ich's continued existence to maintain rural agricultural settings. according to luh, chang, and hsieh (2023), traditional farming techniques, natural resources, and cultural landscapes provide the conditions for the sustainable transmission of ich in rural agricultural settings. this is the case since these factors all affect the environment. rural agricultural settings have the potential to be catalysts for the growth of environmentally conscious tourism, which in turn can contribute to the economic viability of rural communities. increasing awareness is another crucial step toward protecting ich in rural communities. according to lópez-fernández et al. (2021), an improved understanding of the value of ich can lead to increased efforts to conserve it, adding to the cultural and economic sustainability of rural communities. this is the case because improved knowledge of the value of ich can lead to increased attempts to conserve it. raising people's levels of consciousness can help formulate strategies that, over time, will facilitate the transmission of ich from one generation to the next. according to nguyen and drakou (2021), understanding the value and significance of the rural agricultural environment can help mediate the connection between the rural agricultural environment and the upkeep of ich. growing awareness of the importance of the rural agricultural environment may prompt the creation of farming methods that are more environmentally friendly, which in turn may contribute to the protection of ich. h7c: awareness mediates the relationship between the rural agricultural environment and the preservation of intangible cultural heritage in rural communities a rural community's ability to maintain itself throughout time is directly correlated to its ability to appreciate the worth and significance of the agricultural environment in which it exists. according to rotolo et al. (2022), when farmers have a better grasp of sustainable agricultural techniques' environmental and economic benefits, this can lead to a higher adoption rate of these methods, which can help the long-term sustainability of rural communities. the rural agricultural environment and the social sustainability of rural communities can benefit from increased awareness, which can also serve as a bridge between the two. knowledge of the significance of community participation and collaboration can lead to forming social networks and collective action groups, which can contribute to the social sustainability of rural communities, as indicated by ardoin, bowers, and gaillard (2020). this knowledge can be useful in ensuring that rural communities continue to exist. some scholars in the academic community have also highlighted the role of awareness in mediating the rural agricultural environment and the economic viability of rural inhabitants. according to baloch et al. (2023), a better awareness of the value of local resources and products can lead to increased support for local enterprises and marketplaces, which in turn can assist in ensuring the economic viability of rural areas. h7d: awareness mediates the relationship between the rural agricultural environment and the sustainability of rural communities. access to resources as a moderator in addition, research has been done to study the role that the availability of resources plays as a mediator between ich awareness and preservation in rural areas. in their research on the maintenance of traditional culture vázquez-delfin, casas, and vallejo (2022), found that the availability of resources, such as money and infrastructure, had a significant impact on the amount of effort put forth by rural communities to maintain their cultural heritage. they propose that increasing the availability of resources could boost the influence measures taken to raise awareness have on the preservation of ich. similar to what was found by lópez-fernández et al. (2021) in their research on the preservation of traditional crafts, it was found that having access to resources, such as markets and agbioforum, 25(2), 2023 | 86 wu, yasin, abdullah, zhao, yanmei, li, li — the spread of intangible cultural heritage in the rural agricultural environment … raw materials, was essential to the preservation of ich. in addition, there is a lot of friction in the connection between the availability of resources and the preservation of ich. it is dependent on the kinds of resources that are available and their levels of quality. in their research on the preservation of traditional fishing practices, parlee et al. (2021) found that access to modern fishing equipment and methods negatively influenced the preservation of traditional fishing practices. they suggest that if enough resources are made available, such as traditional fishing gear and techniques, it would be possible to help conserve ich. h8a: access to resources moderates the relationship between awareness and preservation of intangible cultural heritage in rural communities. the relationship between the knowledge of rural communities and the ability to sustain themselves is moderated by the availability of resources. rural communities with access to resources are more likely to adopt sustainable practices (sgroi, 2022). this is true even if the populations are uninformed of the long-term benefits associated with the activities. this is because rural communities have access to resources, allowing them to apply sustainable practices without having to overcome significant financial or logistical obstacles. rural communities, on the other hand, may have a more difficult time adopting sustainable practices, even if they are aware of the benefits that these practices will have in the long run (menandro & arnab, 2020). this results from insufficient financial or logistical resources to put sustainable principles into action. as a consequence of this, the availability of resources is an extremely important moderating factor in the connection between rural community awareness and long-term viability. h8b: access to resources moderates the relationship between awareness and sustainability of rural communities. thus, based on the above literature and discussion, we proposed the following conceptual framework, which is shown in figure 1 figure 1: conceptual framework 4. methodology this study utilized a cross-sectional research strategy, which required collecting data from a selection of rural areas as its participants. as the major method for gathering information for the study, a questionnaire in the form of a survey was employed. the questionnaire for the survey was created so that data variables could be collected. the appropriate number of participants for this study was calculated using the g*power software using the following parameters: a medium effect size, a power of 0.80, and an alpha level of 0.05. the bare minimum for the sample size required is 200 using convenience sampling. the questionnaire for the study was distributed to 430 participants through the use of internet surveys. the online poll was disseminated via email and several social media channels to get more people's attention. measures the questionnaire for the survey had scales adapted from previously validated measures found in the literature. a five-item scale that was taken from (desoucey, elliott, & schmutz, 2019) was used to measure the dissemination of intangible cultural assets. a five-item scale that was taken from (stapleton et al., 2019) was used to evaluate the degree to which intangible cultural heritage is preserved in rural communities. the long-term viability of rural communities was assessed using a five-point scale adapted from kapsalis (2022). the rural agricultural environment was evaluated using a five-point scale adapted from enticott et al. (2022). the availability of resources was assessed using a five-point scale adapted from endris et al. (2022). the five-item scale developed by (aktürk, 2022) served as the basis for measuring awareness. cronbach's alpha and confirmatory factor analysis were used to conduct tests to determine the reliability and validity of the measures. the analysis results of the data obtained from the survey questionnaire were generated using structural equation modeling (sem) and the program smartpls. sem was utilized to test the relationships between the variables, as well as to evaluate the mediating role of agbioforum, 25(2), 2023 | 87 wu, yasin, abdullah, zhao, yanmei, li, li — the spread of intangible cultural heritage in the rural agricultural environment … awareness and the moderating role of access to resources in the relationship between the spread of intangible cultural heritage and the rural agricultural environment on the preservation of intangible cultural heritage and sustainability in rural communities. 5. results 6. reliability and validity individual item reliability analyzing the individual item's dependability examines the study project items' internal consistency and reliability. it demonstrates how well one item may measure the same construct in various contexts and with various measurements. the smartpls team suggests setting item dependability thresholds at least equal to 0.4. it provides a reliable measurement of the target construct. table 1 demonstrates the reliability of the items. composite reliability the latent variable's internal consistency and reliability are measured by the composite reliability (cr) statistic. it denotes the degree to which the components of a construct measure the same concept. to demonstrate good construct reliability and consistent assessment by its items, the threshold value for the smartpls cr should be more than or equal to 0.7. the cr is listed in table 1. convergent validity (ave) convergent validity, also known as average variance extracted (ave), is a measurement that determines how well many indicators (items) evaluating the same latent idea agree with one another. the average variance extracted (ave) compares the variance explained by the construct and the variance not defined by the common underlying idea. smartpls recommend an ave criterion of at least 0.5. this threshold indicates that the assessed construct explains at least fifty percent of the variance in the indicator. raise the current value of the threshold. the ave is presented in table 1. cronbach's alpha cronbach's alpha is a statistical tool that evaluates a research endeavor's internal consistency and dependability. it demonstrates how accurately the different parts of a scale judge the same construct. a cronbach's alpha score of 0.7 or higher indicates that the data is reliable and consistent. the reliability and validity of the constructs are presented in table 1. table 1: construct reliability and validity items outer loading cronbach's alpha cr ave awareness a1 0.892 0.838 0.889 0.622 a2 0.569 a3 0.696 a4 0.866 a5 0.869 access to resources ar1 0.884 0.802 0.868 0.581 ar2 0.906 ar3 0.799 ar4 0.698 ar5 0.419 preservation of intangible cultural heritage in rural communities pichrc1 0.699 0.833 0.879 0.595 pichrc2 0.661 pichrc3 0.863 pichrc4 0.826 pichrc5 0.788 rural agricultural environment rae1 0.864 0.855 0.896 0.633 rae2 0.778 rae3 0.799 rae4 0.749 rae5 0.783 spread of intangible cultural heritage siich1 0.875 0.910 0.932 0.733 siich2 0.836 siich3 0.874 siich4 0.851 siich5 0.844 sustainability of rural communities src1 0.657 0.757 0.836 0.505 src2 0.683 src3 0.733 src4 0.745 src5 0.730 discriminant validity the ability of a research model to discriminate between two or more different constructs is evaluated using a discriminant validity metric. this demonstrates the extent to which the questions or measures intended to test one construct assess a model construct. the square root of the ave for each construct is compared to the component correlations, as determined by fornell-larcker. to demonstrate discriminant validity, the square root of the ave for a construct needs to be higher than its correlation with the other components of the model. the discriminant fact is shown in table 2. agbioforum, 25(2), 2023 | 88 wu, yasin, abdullah, zhao, yanmei, li, li — the spread of intangible cultural heritage in the rural agricultural environment … table 2. discriminant validity (fornell-larcker) a ar pichrc rae siich src awareness 0.789 access to resources 0.560 0.762 preservation of intangible cultural heritage in rural communities 0.176 0.189 0.771 rural agricultural environment 0.387 0.577 0.435 0.796 spread of intangible cultural heritage 0.079 0.003 0.486 0.393 0.856 sustainability of rural communities 0.347 0.461 0.001 0.363 0.117 0.711 one of these methods is called the heterotrait-monotrait (htmt) ratio of correlations, and smartpls 4 provides access to it. this approach involves comparing the correlation between the individual components of both constructs to the correlation between the two constructs. it is feasible to ascertain whether or not discriminant validity has been established by contrasting the htmt ratio with the value of 0.9. the findings of the htmt are presented in table 3. table 3. discriminant validity (htmt) a ar pichrc rae siich src awareness access to resources 0.676 preservation of intangible cultural heritage in rural communities 0.216 0.326 rural agricultural environment 0.439 0.668 0.488 spread of intangible cultural heritage 0.097 0.313 0.529 0.443 sustainability of rural communities 0.433 0.594 0.126 0.426 0.166 coefficient of determination and q2 a statistical measure of the variation in the dependent variable that can be assigned to the independent variables in a regression model is referred to as the coefficient of determination, also referred to by its squared form, r squared. this percentage is expressed by a statistic known as "r-squared," which can be found in the table. r squared values, which can range from 0 to 1, reflect how well the independent variables can explain the variance in the dependent variable. larger r-squared values indicate a greater ability of the independent variables to do so. the values of r2 are detailed in the table that follows. on the other hand, q2 assesses a model based on how helpful it will be in the years to come. how well a model can anticipate new observations that weren't considered when the model was being created is a good indicator of how well the model can adapt to new knowledge. the quantifier q2 (q2) can be anywhere between -1 and 1, with larger values indicating greater predictability of the model. table 4 outlines both r2 and q2 for your perusal. table 4: r-square and q square r-square q2 awareness 0.156 0.147 preservation of intangible cultural heritage in rural communities 0.340 0.283 sustainability of rural communities 0.292 0.246 7. structural model the h1 relationship's findings, which indicated that the spread of intangible cultural heritage significantly impacts the preservation of intangible cultural heritage in rural communities, support this hypothesis (t = 8.401, p = 0.040). according to the h2 relationship's findings, the hypothesis that the spread of intangible cultural heritage significantly impacts sustainability in rural communities is accepted (t = 4.664, p = 0.000). according to the h3 relationship's findings, the rural agricultural environment significantly impacts the preservation of intangible cultural heritage in rural communities (t = 4.315, p = 0.000). according to the h4 relationship's findings, the rural agricultural environment significantly impacts sustainability in rural communities (t = 4.302, p = 0.000). according to the h5 relationship's findings, awareness significantly and positively impacts preserving intangible cultural heritage in rural communities. (t = 1.786, p = 0.037). according to the h6 relationship's findings, the hypothesis that awareness has a significant and positive impact on the sustainability of rural communities is accepted (t = 2.151, p = 0.016). table 5. direct effects constructs path coefficient t-statistics p-values siich -> pichrc 0.344 8.041 0.000 siich -> src 0.211 4.664 0.000 rae -> pichrc 0.295 4.315 0.000 rae -> src 0.249 4.302 0.000 a -> pichrc 0.088 1.786 0.037 a -> src 0.096 2.151 0.016 to determine if awareness mediated the relationships between the spread of intangible cultural heritage and preservation of intangible cultural heritage in rural communities, and the spread of intangible cultural heritage and sustainability in rural communities. the mediating effect of green consumption behavior was examined (β = 0.008, t = 1.282, p 0.100: β= 0.008, t = 1.469, p = 0.071). it was determined whether the associations between rural agricultural environment and preservation of intangible cultural heritage in rural communities and rural agricultural environment and sustainability of rural communities were mediated by the awareness (β = 0.037, t = 1.646, p 0.050: β = 0.040, t = 2.125, p = 0.017). (as shown in table 6) table 6. mediation analysis constructs path coefficient t-statistics p-values siich -> a -> pichrc 0.008 1.282 0.100 siich -> a -> src 0.008 1.469 0.071 rae -> a -> pichrc 0.037 1.646 0.050 rae -> a -> src 0.040 2.125 0.017 to determine if access to resources moderates the relationships between the awareness and preservation of intangible cultural heritage in rural communities, and agbioforum, 25(2), 2023 | 89 wu, yasin, abdullah, zhao, yanmei, li, li — the spread of intangible cultural heritage in the rural agricultural environment … awareness and sustainability in rural communities. the moderating effect of access to resources was examined (β = 0.160, t = 3.850, p 0.000: β= 0.106, t = 3.011, p = 0.001). (as shown in table 7) table 7. moderation analysis constructs path coefficient t-statistics p-values ar x a -> pichrc 0.160 3.850 0.000 ar x a -> src 0.106 3.011 0.001 8. discussion the first thing that needs to be examined is how the preservation of intangible cultural heritage in rural communities is affected by the spread of intangible cultural property. the rapid industrialization of civilizations has led to a decline in ich, particularly in rural regions (wilkinson, 2020). this trend is particularly pronounced in the united states. the rise of ich has made it possible for people living in rural areas to share their cultural activities with a wider audience. rural communities have the opportunity to preserve their heritage and generate revenue through tourism by sharing the cultural practices that make up their ich with visitors. the proliferation of ich has the potential to facilitate the growth of pride and a sense of identity in rural communities. according to stapleton et al. (2019), rural groups are commonly made to feel inferior to metropolitan areas and are hence marginalized. people have the potential to have feelings of pride in their cultural practices if ich is preserved and appreciated. the increasing prevalence of ich may increase younger generations' awareness of ich practices and their appreciation of those practices. according to xiao et al. (2023), the younger generation in many rural communities is typically more interested in current approaches and may consider ich procedures obsolete and archaic. by displaying ich customs to a larger audience, on the other hand, younger generations can be made aware of the splendor and relevance of their cultural legacy. this can be accomplished through the ich. the second hypothesis is to research the influence that the dissemination of intangible cultural assets has on the viability of rural communities. transiting intangible cultural heritage can significantly benefit rural communities' viability by serving as a source of social cohesion, economic opportunity, and environmental conservation. according to arcos-pumarola, paquin, and sitges (2023), ich can foster a sense of belonging and identity within a community, contributing to the growth of the community as a whole. traditional forms of expression like music, dancing, and oral storytelling play an essential role in many rural communities and bring residents together for cultural celebrations and events. according to luchoro-parrilla et al. (2021), the promotion of intangible cultural assets can improve social inclusion and empower marginalized groups, particularly young people and women. second, ich helps to sustain local livelihoods by creating economic opportunities and contributing to their maintenance. according to halder and sarda (2021), traditional knowledge and practices have the potential to provide income for rural communities through the commercialization of traditional goods and services. in conclusion, ich contributes to the preservation of the environment and the management of resources. according to lees et al. (2023), ecological techniques and knowledge that have been around for a long time, such as agroforestry, soil conservation, and water management, can provide long-term solutions to environmental challenges. in addition, conserving traditional landscapes, biodiversity, and cultural heritage places contributes to the preservation of natural resources and encourages the development of tourism that does not harm the environment. the third hypothesis is to examine rural agricultural settings' influence on the maintenance of intangible cultural assets in rural communities. according to serramajem and medina (2020), the rural agricultural environment substantially impacts the preservation of rural communities' intangible cultural heritage. the intangible cultural legacy of a community consists of the customs, traditions, and knowledge that, over time, have been handed down from one generation to the next and have helped shape its cultural identity. agriculture is frequently a fundamental component of the identity of a rural community, and it also plays an essential part in protecting intangible cultural assets (vázquez-delfin, casas, & vallejo, 2022). traditional farming practices, including the passing down information, beliefs, and rituals from one generation to the next, are inextricably intertwined with agriculture. to maintain cultural diversity and foster sustainable development, the conservation of cultural assets that are not tangible is of the utmost importance. rural communities can contribute to sustainable agriculture and biodiversity protection if they maintain their traditional ways of life and knowledge (tang et al., 2023). this, in turn, adds to the community's general wellbeing, which includes issues relating to the economy and the social and environmental environments. investigating the influence of rural agricultural environments on the long-term viability of rural communities constitutes the fourth hypothesis. agricultural operations are extremely important to expanding economic prospects and enhancing the quality of life in rural areas. according to shabir et al. (2023), sustainable agricultural practices can play a role in protecting the natural environment and maintaining biological diversity, both of which are essential to the continued existence of rural communities. in rural areas, the agricultural industry helps alleviate poverty and ensures that people have access to food. according to yue and guo (2021), conservation agriculture, for instance, has the potential to both boost crop yields and enhance the general health of the soil. this, in turn, can provide financial benefits to farmers and contribute to the sustainable growth of rural areas. a large amount of progress toward gender equality and social inclusion has been made in rural regions as a result of rural agricultural activities. according to bryan and mekonnen (2023), women play a crucial role in agricultural operations. because of this, empowering women can result in more sustainable and resilient rural communities. investigating the influence of awareness on the conservation of intangible cultural heritage in rural communities is the fifth hypothesis that will be tested. to agbioforum, 25(2), 2023 | 90 wu, yasin, abdullah, zhao, yanmei, li, li — the spread of intangible cultural heritage in the rural agricultural environment … preserve intangible cultural heritage (ich), rural communities must raise awareness of the issue. according to masoud, mortazavi, and farsani (2019), ich has a vital role in forming cultural identity and social cohesion, particularly in rural areas, where it is regularly and deeply engrained in daily life. when people become aware of the significance of the cultural practices that are important to them, they are more likely to take measures to preserve such practices and pass them on to subsequent generations. it is standard practice in many rural communities to pass on ich through oral traditions; nevertheless, there is a danger that this practice will be lost if newer generations move to urban areas or adopt new ways of life (castro, 2021). when local communities become aware of the imminent loss of their cultural heritage, they may develop programs to document and record their traditions and take steps to document and record them (boyd, 2020). in addition, they may take steps to transfer these traditions to future generations. in addition, increasing awareness helps promote ich's economic significance, particularly in rural regions where traditional crafts and practices are typically strongly tied to local livelihoods. this is especially true regarding the importance of ich in the context of ich. according to hernández-rojas, huete-alcocer, and hidalgo-fernández (2022), communities that profit from tourism efforts that promote local ich can also contribute to preserving the communities' cultural history. the sixth hypothesis is investigating the influence of awareness on rural communities' ability to be sustainable. increasing people's knowledge is important in encouraging sustainable development in rural communities. according to tzima et al. (2020), sustainable development requires the integration of social, economic, and environmental variables. this integration, in turn, calls for a comprehensive understanding of communities' challenges and opportunities. through increased knowledge, rural communities can become more conscious of their impact on the surrounding natural environment and the importance of preserving natural resources. this can result in implementing sustainable practices such as the conservation of biodiversity, the reduction of waste, and the use of renewable energy. in addition, increasing people's understanding may incentivize rural communities to take steps toward enhancing their economic standing (panzer-krause, 2020). by recognizing the possibilities of ecotourism and organic farming as examples of sustainable lifestyles, communities can generate income that helps both the environment and the people in the community. a heightened awareness can also benefit rural communities' social viability. this investigation aims to test a hypothesis about the impact of awareness on the relationship between the dissemination of intangible cultural heritage and the preservation of that heritage in rural communities. the expansion of intangible cultural assets can have various effects on conservation, although increased awareness can act as a buffer against these effects. according to rahmani and tienken (2022), disseminating intangible cultural assets can sometimes result in changing or eliminating traditional ways of doing things, beliefs, and bodies of knowledge. this is especially true when communities face external influences such as globalization and industrialization. this investigation aims to test the hypothesis that there is a moderating relationship between the dissemination of intangible cultural heritage and the viability of rural communities. the mediation of the relationship between the transfer of intangible cultural assets and the viability of rural communities relies heavily on awareness as an essential component. according to waites et al.'s research from 2019, when members of a community understand the significance of their cultural heritage, they are more likely to take measures to ensure that it is maintained. this can include encouraging traditional materials and methods in local industries, funding cultural events and festivals, and instructing younger generations in traditional customs. at the same time, increasing knowledge can assist in ensuring that the diffusion of intangible cultural assets does not negatively impact long-term viability (li, 2021). increased awareness leads to a greater grasp of the environmental effects of previous behaviors and the necessity of adopting alternative and more sustainable methods (trichopoulou, 2021). in addition, it has the potential to encourage debate among the many subgroups within the community, including those with contrasting opinions regarding the significance of cultural heritage. this research aims to study the impact of awareness on the mediating relationship between rural agricultural environments and the preservation of intangible cultural heritage in rural communities. according to spadijer (2022), raising awareness is essential in mediating the link between the rural agricultural environment and the protection of ich. in particular, increasing awareness among rural communities about the significance and worth of their intangible cultural heritage may make it possible to assist these communities in better appreciating, preserving, and passing on these traditions to subsequent generations. this can be accomplished through educating people about the significance and value of their intangible cultural heritage. education and training programs that teach young people about their cultural heritage are one type of cultural awareness that can take many different forms (aktürk, 2022). another type of cultural awareness can be public events and festivals that honor local customs and traditions. rural communities may be better able to withstand the demands of modernity and change if they enhance their awareness in the ways described above (enticott et al., 2022). this would allow rural communities to maintain their unique cultural identities over time. investigating the impact of awareness as a mediator between rural agricultural environments and the long-term viability of rural communities is the purpose of this particular hypothesis. it is essential to have the awareness to successfully mediate the relationship between the rural agricultural environment and the long-term viability of rural communities. the rural agricultural environment provides vital supplies and opportunities for people living in rural areas to make a living, and maintaining this environment sustainably is essential to these communities' long-term existence (vu & goto, 2020). rural agbioforum, 25(2), 2023 | 91 wu, yasin, abdullah, zhao, yanmei, li, li — the spread of intangible cultural heritage in the rural agricultural environment … communities are responsible for educating themselves on the significance of environmentally responsible activities and the effects of environmental deterioration on the rural agricultural environment. according to anaduaka et al. (2023), increasing awareness can benefit from educational and community outreach programs. according to jatoespino and mayor-vitoria (2023), when people in rural communities understand the importance of sustainable practices, they are more likely to adopt those practices, leading to improved rural agriculture management. this investigation aims to test a hypothesis about the impact of rural community access to resources on the relationship between awareness and the preservation of intangible cultural assets. access to resources is a significant factor that weighs significantly on the relationship between rural community members' understanding of intangible cultural assets and their preservation. according to rojas and benakli (2020), efforts to raise awareness and safeguard cultural assets in remote areas might be thwarted by a lack of access to resources like money, technology, and education. on the other hand, having access to these materials can increase one's awareness of intangible cultural assets and help in the preservation process. word of mouth and hands-on experience are two of the most common ways rural communities ensure that their cultural traditions are preserved for future generations (christodoulakis, vidal carulla, & adbo, 2021). it can be difficult for community people to adequately know and value the significance of their cultural history if they do not have access to education and training opportunities. according to rahn, linzmeier, and winchell (2023), an effective technique to encourage the preservation of cultural heritage is to raise knowledge about the importance of doing so through the participation of the community in cultural activities. this investigation aims to test the moderating impact of access to resources on the relationship between rural community awareness and community sustainability. the degree to which residents of rural towns have access to various resources can determine the viability of those settlements. according to tzima et al. (2020), having access to resources, in particular, has the potential to change the relationship between environmental awareness and environmentally responsible behavior. when it comes to putting sustainable principles into action, rural communities are better able to do so when they have access to resources such as funding, technology, and infrastructure. under these conditions, raising awareness can play a more significant part in promoting sustainable practices because the community possesses the resources necessary to make the necessary changes (buckland & campbell, 2021). it is essential to close the resource gap in many rural regions if there is any hope of achieving sustainability over the long run. these may include projects that provide funding, technology, and infrastructure to support environmentally friendly activities. in addition, it may include campaigns of education and awareness directed especially toward rural communities to encourage the adoption of environmentally friendly behaviors (birkeland & li, 2019). theoretical and practical implications the ongoing financial crisis has rekindled people's interest in old ways of doing things, particularly in more rural parts of the country. as a direct consequence of this, the intangible cultural traditions of these communities now have the opportunity to be preserved and enhanced. this can be accomplished through activities such as festivals, workshops, and training programs that assist in passing on one generation's knowledge and abilities to the subsequent generation. the promotion of intangible cultural treasures can have a favorable effect on the economy. craft tourism and other practice tourism, for instance, can open up new revenue streams for those living in rural areas. as a result, this has the potential to benefit the economy of the surrounding areas and support the continuation of cultural traditions. it is also possible for the promotion of intangible cultural heritage to positively influence society. it has the potential to bring different communities closer together and to cultivate a sense of pride and identity that is shared by all. as a consequence of this, social cohesion and a feeling of belonging may become even stronger. in the setting of modern china's rural agricultural landscape, the development of intangible cultural assets emphasizes the requirement of cultural preservation. it underscores the necessity of recognizing and valuing old habits and knowledge, particularly in light of the advances that have taken place in both the economic and social spheres. the value of cultural diversity is brought to light by initiatives that promote intangible cultural assets. this demonstrates the significance of passing a diverse array of cultural practices and knowledge structures to future generations. within the framework of contemporary rural agriculture in china, the promotion of intangible cultural heritage emphasizes the importance of identity and belonging. it underlines the significance of cultural activities and the acquisition of cultural information in forming our identities and instilling a sense of community belonging. limitations the exclusive focus of this research project will be the dissemination of intangible cultural assets in china's modern agricultural countryside, which is placed as it is within the backdrop of an epidemic economic climate. it is possible that the findings cannot be generalized to other cultural or economic contexts due to the differences that exist between them. the study relies on the data the participants self-report, which may or may not be free from bias and may or may not accurately reflect the situation as it truly stands. this study did not look at government policies' role in promoting the transmission of intangible cultural assets in rural areas; therefore, that question was not answered. future directions and recommendations in the future, research might investigate the efficacy of government initiatives in disseminating intangible cultural assets in rural areas and identify any obstacles to the programs' actual execution. future studies may investigate how technology and digital platforms may influence the dissemination of intangible cultural assets in rural areas. the social and economic elements that influence the preservation and transmission of intangible cultural assets in rural areas, as well as how these factors are affected by economic advancements, could be the subject of study that is conducted in the future. in subsequent investigations, the agbioforum, 25(2), 2023 | 92 wu, yasin, abdullah, zhao, yanmei, li, li — the spread of intangible cultural heritage in the rural agricultural environment … impact of the pandemic on the dispersal of intangible cultural assets in urban areas and how this varies from the situation in rural areas might be investigated. 9. conclusion the development of intangible cultural heritage in modern china's rural agricultural landscape has been a mixed bag of hurdles and rewards in the context of the current economic climate. the covid-19 outbreak has posed enormous challenges to preserving and promoting intangible cultural heritage, particularly in geographically isolated communities that have restricted access to resources and technology. despite this, it has provided a chance for communities to rediscover and cherish the cultural heritage they have inherited to cope with the crises they are facing. as a direct response to the outbreak, numerous initiatives to foster the transmission of intangible cultural assets in rural agricultural settings have been initiated as part of the response. for instance, the government of china has launched a variety of initiatives to promote the maintenance and growth of intangible cultural assets. however, many rural communities have adopted unique alternatives to adapt their cultural practices to the new reality. these include funding online cultural activities and using digital platforms to spread their traditions. despite the challenges, the epidemic has highlighted the importance of conserving intangible cultural assets in rural areas. this is important not just to preserve cultural diversity but also to ensure the continued viability of local enterprises. china needs to acknowledge the significance of its intangible cultural legacy and take measures to protect it for the benefit of future generations as it continues its modernization and economic development. references aktürk, g. 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(2021). understanding the economic impacts of sea-level rise on tourism prosperity: conceptualization and panel data evidence. advances in climate change research, 12(2), 240-253. doi: https://doi.org/10.1016/j.accre.2021.03.009 yue, q., & guo, p. (2021). managing agricultural waterenergy-food-environment nexus considering water footprint and carbon footprint under uncertainty. agricultural water management, 252, 106899. doi: https://doi.org/10.1016/j.agwat.2021.106899 zheng, s. (2023). safeguarding food heritage through social media? between heritagization and commercialization. international journal of gastronomy and food science, 31, 100678. doi: https://doi.org/10.1016/j.ijgfs.2023.100678 zikargae, m. h., woldearegay, a. g., & skjerdal, t. (2022). empowering rural society through non-formal environmental education: an empirical study of environment and forest development community projects in ethiopia. heliyon, 8(3), e09127. doi: https://doi.org/10.1016/j.heliyon.2022.e09127 https://doi.org/10.1016/j.landusepol.2020.104721 https://doi.org/10.1007/978-3-030-14625-2_7 https://doi.org/10.1016/j.culher.2023.01.008 https://doi.org/10.1016/j.accre.2021.03.009 https://doi.org/10.1016/j.agwat.2021.106899 https://doi.org/10.1016/j.ijgfs.2023.100678 https://doi.org/10.1016/j.heliyon.2022.e09127 agbioforum, 24(2): 226-235. ©2022 agbioforum the role of innovation adoption and circular economy readiness on the environmental sustainability: moderating impact of organizational support roxana yolanda castillo-acobo universidad nacional de san agustín email: rcastilloa@unsa.edu.pe https://orcid.org/0000-0002-6467-7796 yusey del pilar yasmin flores cano universidad nacional del altiplano puno email: yflores@unap.edu.pe https://orcid.org/0000-0002-5141-9448 angélica karina pacori paricahua universidad nacional de juliaca email: karinapacori@gmail.com https://orcid.org/0000-0002-8296-5 yazmín paola íñiguez-ayón universidad autónoma de sinaloa email: paola.inigueza@uas.edu.mx https://orcid.org/0000-0002-7503-7815 cevero rómulo rojas león universidad peruana los andes email: d.crojasl@upla.edu.pe https://orcid.org/0000-0001-6544-5869 mohamed mehdi hadi mohamed universidad peruana los andes email: d.mhadi@upla.edu.pe https://orcid.org/0000-0003-1940-8383 aniceto elias aguilar polo universidad nacional intercultural de la amazonía email: aaguilarp@unia.edu.pe https://orcid.org/0000-0002-0474-3843 juan carlos orosco gavilán universidad privada del norte email: juan.orosco@upn.edu.pe https://orcid.org/0000-0002-4268-3992 manuel antonio cardoza sernaqué universidad tecnológica del perú email: mcardoza@utp.edu.pe https://orcid.org/0000-0001-6738-0683 miguel angel cancharì preciado universidad césar vallejo email: cancharipreciado.89@gmail.com https://orcid.org/0000-0002-8873-8450 christian paolo martel carranza universidad de huánuco email: christian.martel@udh.edu.pe https://orcid.org/0000-0001-9272-3553 josé luis arias gonzáles pontificia universidad católica del perú email: joseariasgon6@gmail.com https://orcid.org/0000-0002-3250-5287 environmental sustainability is currently the most critical demand on a global scale, and it may be reached through innovation and a circular economy. this component demands the aim of policymakers and researchers. therefore, this study investigates the effect of innovation adoption and circular economy readiness on peru's environmental sustainability. the research also examines the moderating effect of organizational support on innovation adoption, preparation for the circular economy, and environmental sustainability in peru. using questionnaires, the researchers collected and evaluated the data using smart pls. the results demonstrated a positive relationship between innovation adoption, circular economy readiness, and environmental sustainability in peru. the results also demonstrated that organizational support moderates’ innovation uptake, preparation for the circular economy, and environmental sustainability in peru. the research aids policymakers in formulating environmental sustainability strategies based on innovation uptake and circular economy preparedness. key words: innovation adoption, circular economy readiness, environmental sustainability, organizational support, peru. mailto:rcastilloa@unsa.edu.pe https://orcid.org/0000-0002-6467-7796 mailto:yflores@unap.edu.pe https://orcid.org/0000-0002-5141-9448 mailto:karinapacori@gmail.com https://orcid.org/0000-0002-8296-5 mailto:paola.inigueza@uas.edu.mx https://orcid.org/0000-0002-7503-7815 mailto:d.crojasl@upla.edu.pe https://orcid.org/0000-0001-6544-5869 mailto:d.mhadi@upla.edu.pe https://orcid.org/0000-0003-1940-8383 mailto:aaguilarp@unia.edu.pe https://orcid.org/0000-0002-0474-3843 mailto:juan.orosco@upn.edu.pe https://orcid.org/0000-0002-4268-3992 mailto:mcardoza@utp.edu.pe https://orcid.org/0000-0001-6738-0683 mailto:cancharipreciado.89@gmail.com https://orcid.org/0000-0002-8873-8450 mailto:christian.martel@udh.edu.pe https://orcid.org/0000-0001-9272-3553 mailto:joseariasgon6@gmail.com https://orcid.org/0000-0002-3250-5287 agbioforum, 24(2), 2022 | 115 acobo, cano, paricahua et al. — the role of innovation adoption and circular economy readiness on the environmental sustainability… 1. introduction environmental deterioration will continue to be one of the world's most significant problems, both now and in the future. the dreadful effects of the environment portend a bleak future. this is an example of global warming. global warming has both a financial and a health impact on the world. the same is valid for peru. peru is one of the most biodiverse countries in the world due to its extensive coastline, andean highlands, and amazonian environments. however, this abundance is threatened by alterations in precipitation and temperature. el nio southern oscillation exacerbates the frequency, intensity, and effects of natural disasters such as floods, droughts, and landslides in peru. climate change and increasing unpredictability will further amplify these effects (zieglerrodriguez et al., 2019). these climate challenges threaten peru's recent development gains, particularly with ongoing problems such as agricultural expansion, deforestation, illegal mining, and air and water pollution. land use change and forestry account for over half of the nation's total greenhouse gas emissions, followed by energy and agriculture. the overexploitation and degradation of peru's natural resources are the underlying causes of the country's environmental difficulties (tarazona et al., 2020). mining, oil and gas production, and illegal logging are problematic industries (tarazona et al., 2020). there is still much work to be done. exploration for oil and gas in the amazon has caused deforestation, land and water degradation, and the displacement of traditional inhabitants (masron et al., 2019). by searching for oil and gas in distant regions, producers jeopardize the natural equilibrium of these pristine ecosystems. pipeline development may pose a substantial danger to biodiversity due to the destruction of habitats. mining is a problem in peru since it has caused serious water contamination. all these metals are extracted in peru, contaminating the water systems of the cordillera huayhuash and central peru. as of 2009, three big gold mines in southern peru's madre de dios region had devastated a total of 38,300 acres (15,500 hectares) of forest (tyagi et al., 2014). numerous smaller mines, which account for at least half of the gold mining in this region, have begun to negatively impact the environment by poisoning the water supply and accelerating deforestation. population growth is the primary source of many of peru's environmental challenges (alvarado et al., 2017). both overgrazing and frequent tree cutting for fuel contribute to soil erosion and mudslides. adopting modern-era innovation and promoting a circular economy are two ways to mitigate environmental degradation and bring about environmental sustainability (adebayo et al., 2021; skoczinski et al., 2021; usman et al., 2020). however, the country's support and organization are the most critical factors (soewarno et al., 2019), as hazardous gas emissions are one of the leading drivers of global environmental degradation. figure 1 depicts the carbon output in peru (in thousand tons). although environmental sustainability, innovation adoption, and circular economy have been studied from diverse vantage points and at different times, their research has not yet achieved its zenith, as many of their facets remain to be investigated. 2) chege et al. (2020) examined the relationship between technological innovation and the performance of small and medium-sized enterprises (smes) through environmental sustainability in kenya. figure 1: carbon emission in peru (in thousand tons) source: global economy the current study will also examine this relationship, adding variables such as the circular economy and organizational support in peru and a new data set. 3) the paradigm of environmental sustainability, innovation adoption, circular economy, and organizational support has not been tried in peru in recent years. 4) hashmi et al. (2019) examined whether there is a relationship between environmental sustainability, innovation, and economic growth. the current study will also focus on environmental sustainability and innovation by employing the moderating effect of organizational support with a new sample set. 5) joensuu et al. (2020) conducted a systematic review of circular economy practices in the building environment. in contrast, the current study will empirically examine the relationship between circular economy and environmental sustainability with a moderating effect in peru, utilizing a new data set. 6) yang et al. (2022) did a literature analysis on the strategies of the circular economy to alleviate the agbioforum, 24(2), 2022 | 228 acobo, cano, paricahua et al. — the role of innovation adoption and circular economy readiness on the environmental sustainability… negative effects of climate change; however, the current study will empirically examine the link with the addition of a new variable, innovation adoption, using a new data set. 7) boudreaux et al. (2019) investigated the moderating role of organizational support in the relationship between social traits and entrepreneurship; however, the present study examines its moderating effect on innovation adoption, circular economy, and environmental sustainability in peru using a new data sample. environmental sustainability, one of the topics of the modern era, will be highlighted in the context of circular economy and innovation with an eye toward the next generation (sumarno et al., 2021). the study will also contribute to the literature on environmental sustainability and provide a guideline and assistance to environmentrelated professionals in reviewing and enhancing their practices. 3) although various aspects of environmental sustainability have been investigated too far, many remain unexplored; therefore, the present inquiry will also aid scholars in exploring new aspects. 2. literature review in recent decades, environmental sustainability has received much attention. there are various reasons for this, including environmental deterioration, increased carbon and greenhouse gas emissions, and their negative impact on human existence, especially health. the global community is very interested in this topic and favors projects that contribute to environmental sustainability. utilizing modern technical innovation, such as for producing energy from natural resources, the technological advancements of the modern age are also crucial. there is a strong correlation between the acceptance of innovations and environmental sustainability. in this context, hysa et al. (2020) examined the notion of circular economy innovation, environmental sustainability, and economic growth. the research focused on the indices of innovation in the circular economy, economic growth, and environmental sustainability. the study reviewed 295 papers on the circular economy, 59464 pieces on sustainability, and 67 articles on the intersection of economics and sustainability. the papers analyzed span the years 1950 to 2016. the investigation determined a substantial relationship between all of the chosen factors. additionally, circular economy, innovation, and environmental sustainability impact economic growth. due to their membership in all levels of society, smes are a crucial component of any nation's economy, mainly the mediocre grades. additionally, technological innovation can improve their function and benefit the environment. chege et al. (2020) explored the relationship between technological innovation and small and medium-sized enterprises (smes) performance via environmental sustainability. in kenya, the investigation was conducted. the study was exploratory. the research sampled 204 small and medium-sized businesses. utilizing online surveys, the sample was obtained. the collected sample was analyzed using a regression model. specifically in kenya, the analysis demonstrated a significant relationship between innovation uptake and environmental sustainability. hashmi et al. (2019) also explored the relationship between environmental sustainability, innovation, and economic growth. the investigation was conducted on oecd nations. the study was exploratory. the research sampled fifteen individuals. questionnaires were utilized to acquire the sample. using stirpat, the collected material was examined. the analysis indicated a substantial relationship between innovation, environmental legislation, and economic development. in addition, a 1% increase in environmental tax revenue per capita reduces carbon emissions by 0.03%, while a 1% increase in environmentally beneficial patents reduces carbon emissions by 0.017%. thus, the hypotheses drawn from the preceding discussion are as follows. h1: there is a significant association between innovation adoption and environmental sustainability. the concept of environmental sustainability has garnered much attention in recent decades. several causes contribute to it, including environmental deterioration, an increase in carbon and greenhouse gas emissions, and the harmful consequences of these variables on human life, particularly on health. (oláh et al., 2020) the international community is interested in this field and favors projects that contribute to environmental sustainability. modern technological developments, such as the ability to generate energy from reclaimed materials, also play a significant role in this field. the circular economy is based on the concept of recycling. renewable energy is a prime example of the circular economy. the global ecology is deteriorating due to excessive carbon emissions; thus, the globe is adopting the circular economy concept and shifting to renewable energy (iqbal, 2020). the circular economy is founded on recycling, and renewable energy is generated from similar resources, such as water and air, without emitting harmful gases. this entire procedure results in a stable global ecosystem. a significant correlation exists between circular economy and environmental sustainability. in this regard, joensuu et al. (2020) undertook a comprehensive assessment of circular economy techniques in environmental construction. the nature of the inquiry was exploratory. the inquiry studied 282 articles from numerous periodicals. this article comprehensively analyzes the most recent scholarly studies on circular economies (ce) and the built environment. it is also predicated on the notion that a substantial fraction of all sustainability challenges might be remedied if ce was implemented due to the built environment's significant environmental impact. the review determined that circular economy methods are crucial to environmental construction. shojaei et al. (2021) aimed to facilitate the built environment in a circular economy. the analysis indicated that the circular economy is crucial to the overall built environment process. as there is a need for methods to implement a circular economy across all sectors, the circular economy agbioforum, 24(2), 2022 | 229 acobo, cano, paricahua et al. — the role of innovation adoption and circular economy readiness on the environmental sustainability… is strongly linked to environmental sustainability regarding climate change. these causes have also contributed to a rise in solid waste and climate change. in this context, yang et al. (2022) developed circular economy techniques that reduce the negative effects of climate change and promote environmental sustainability. changing land use and land cover to accept more biobased products is difficult, according to the research assessment. carbon dioxide removal technologies cost between $100 to $1,200 per ton of carbon dioxide. a tiny number of companies have political goals relating to climate change. although circular economy concepts can be implemented in numerous industries, including waste management, energy production, building, and transportation, life cycle analysis is still required to optimize new systems. therefore, the hypothesis drawn from the preceding discussion is as follows: h2: there is a significant association between circular economy readiness and environmental sustainability. the environment has become an integral aspect of the future of the globe. due to its dreadful repercussions, the environment is a fundamental concern for all nations. on the one hand, the global environment is deteriorating due to a growth in the emission of dangerous gases, such as carbon dioxide and greenhouse gases, as well as the consumption of fossil fuels and the generation of energy from traditional resources, such as coal. on the other hand, the globe is increasingly researching it to adopt innovation that helps alleviate the hazardous impacts of environmental deterioration. in this context, innovation is crucial, as the production of electric cars reduces fuel consumption and carbon emissions. in the entirety of the procedure, organizational support is an essential aspect. in this regard, gilal et al. (2019) examined whether organizational support can moderate the relationship between environmental performance and green human resources management. the investigation was conducted on institutes of higher education. the study sampled the information of 214 higher education institution personnel. the collected sample was analyzed with the assistance of spss. the analysis indicated that there is a statistically significant relationship between all factors. additionally, organizational support moderates the relationship significantly. likewise, garavan et al. (2021) examined the moderating influence of organizational support on the link between training and organizational performance. according to the analysis results, all investigation factors are highly connected. additionally, organizational support serves as a significant moderator. thus, the hypothesis drawn from the preceding discussion is as follows: h3: organizational support significantly moderates the association between innovation adoption and environmental sustainability. shortly, environmental deterioration will be one of the world's most significant dangers. the global temperature is rising at an accelerated rate. temperature rise is an obvious indication of global warming. this global warming contributes to the loss of natural resources through the melting of glaciers and the consumption of coal, gas, and oil. there are a lot of causes for this global warming, including the increase in fuel use in automobiles, the use of carbon-emitting chemicals in industry, and the generation of energy from traditional resources such as fossil fuel and coal (iqbal, 2020). such occurrences result in the emission of toxic gases contributing to environmental damage. the global community is pushing a circular economy to prevent such harmful gas emissions. a circular economy encourages the reuse or recycling of resources (helander et al., 2019). renewable energy is a prominent example of a circular economy. there is a significant relationship between circular economy and environmental sustainability (oláh et al., 2020) because renewable energy is generated from resources such as water and air that can be reused multiple times and emit no greenhouse gases, thereby promoting environmental sustainability. organizations play a vital part in the circular economy process. according to the literature, organizational support functions as a moderator. boudreaux et al. (2019) examined the moderating influence of organizational support on the link between social qualities and entrepreneurship in this scenario. the 10-year data collection was used as a sample for the inquiry by merging it. the selection spans the years 2002 through 2012. according to the study results, organizations' support functions as a critical moderator in the association between social qualities and entrepreneurship. likewise, wen et al. (2019) examined the moderating influence of organizational support on the link between emotional intelligence and emotional labor. the inquiry into the chinese hotel business was conducted in china. the data set of 279 hotel industry employees was used as a sample. the sample was collected through the use of questionnaires. according to the investigation's findings, organizational support is a significant moderator. thus, the hypotheses drawn from the preceding discussion are as follows. h4: organizational support significantly moderates the association between circular economy readiness and environmental sustainability. research methods this study studies the relationship between innovation adoption, circular economy readiness, and environmental sustainability in peru, as well as the moderating effect of organizational support. using questionnaires, the researchers collected the data. the variables are measured via items or questions. these questions or items are culled from earlier publications. the innovation adoption has six questions from aboelmaged et al. (2019); circular economy readiness was measured with ten questions from alvarez-risco et al. (2021); organizational support has eight questions from li et al. (2019); and environmental agbioforum, 24(2), 2022 | 230 acobo, cano, paricahua et al. — the role of innovation adoption and circular economy readiness on the environmental sustainability… sustainability was measured with seven questions from danso et al. (2019). in addition, the researchers utilized smart pls to analyze the data. it gives the most accurate estimation results using massive data sets and intricate models (hair jr et al., 2020). in addition, it is a handy instrument for primary data analysis (hair et al., 2017). moreover, the researchers employed two independent variables, innovation adoption (iad) and circular economy preparedness (cer). in contrast, the researchers used organizational support (ors) as a moderating variable and environmental sustainability as a dependent variable (ens). figure 2 contains a listing of these variables. figure 2. theoretical framework research findings the researchers examine the correlation between the items, and the results indicate that the average value extracted (ave) and factor loadings are more significant than 0.50. in contrast, the results also demonstrated that the composite reliability (cr) and alpha are more significant than 0.70. these results showed a strong link between items. table 1 summarizes these results. the researchers also examine the association between variables using cross-loadings and fornell larcker. the results demonstrated that the average figures revealing the relationships between variables are greater than those showing the relationships between other variables. these results demonstrated a low correlation between factors. these consequences are highlighted in tables 2 and 3. table 1: convergent validity constructs items loadings alpha cr ave circular economy readiness cer1 0.857 0.948 0.955 0.682 cer10 0.803 cer2 0.818 cer3 0.832 cer4 0.833 cer5 0.842 cer6 0.801 cer7 0.836 cer8 0.787 cer9 0.847 environmental sustainability ens1 0.762 0.900 0.922 0.628 ens2 0.644 ens3 0.789 ens4 0.830 ens5 0.832 ens6 0.841 ens7 0.830 innovation adoption iad1 0.941 0.975 0.979 0.871 iad2 0.911 iad3 0.951 iad4 0.934 iad5 0.906 iad6 0.954 iad8 0.932 organizational support ors1 0.827 0.923 0.938 0.655 ors2 0.585 ors3 0.860 ors4 0.847 ors5 0.810 ors6 0.866 ors7 0.861 ors8 0.781 innovation adoption circular economy readiness organizational support environmental sustainability agbioforum, 24(2), 2022 | 231 acobo, cano, paricahua et al. — the role of innovation adoption and circular economy readiness on the environmental sustainability… table 2: fornell larcker cer ens iad ors cer 0.826 ens 0.489 0.793 iad 0.483 0.446 0.933 ors 0.448 0.424 0.425 0.809 table 3: cross-loadings cer ens iad ors cer1 0.857 0.455 0.403 0.371 cer10 0.803 0.309 0.321 0.349 cer2 0.818 0.456 0.452 0.353 cer3 0.832 0.454 0.434 0.380 cer4 0.833 0.425 0.450 0.368 cer5 0.842 0.386 0.350 0.395 cer6 0.801 0.305 0.325 0.354 cer7 0.836 0.421 0.455 0.376 cer8 0.787 0.381 0.392 0.360 cer9 0.847 0.388 0.352 0.393 ens1 0.453 0.762 0.431 0.367 ens2 0.250 0.644 0.343 0.242 ens3 0.423 0.789 0.407 0.347 ens4 0.381 0.830 0.305 0.322 ens5 0.384 0.832 0.326 0.360 ens6 0.407 0.841 0.333 0.361 ens7 0.374 0.830 0.306 0.328 iad1 0.452 0.396 0.941 0.428 iad2 0.458 0.398 0.911 0.396 iad3 0.450 0.423 0.951 0.412 iad4 0.445 0.438 0.934 0.369 iad5 0.454 0.397 0.906 0.394 iad6 0.453 0.419 0.954 0.415 iad8 0.443 0.435 0.932 0.368 ors1 0.336 0.333 0.346 0.827 ors2 0.257 0.256 0.182 0.585 ors3 0.385 0.353 0.355 0.860 ors4 0.357 0.336 0.344 0.847 ors5 0.388 0.304 0.378 0.810 ors6 0.409 0.372 0.376 0.866 ors7 0.406 0.413 0.391 0.861 ors8 0.340 0.349 0.346 0.781 the researchers also examine the connection between factors using the heterotrait monotrait (htmt) ratio. the results demonstrated that the values do not exceed 0.85. these results showed a low correlation between factors. table 4 outlines these results. table 4: heterotrait monotrait ratio cer ens iad ors cer ens 0.514 iad 0.495 0.472 ors 0.477 0.459 0.446 figure 3. measurement assessment model agbioforum, 24(2), 2022 | 232 acobo, cano, paricahua et al. — the role of innovation adoption and circular economy readiness on the environmental sustainability… accept h1 and h2 as innovation adoption and circular economy readiness positively correlates with environmental sustainability in peru. in addition, the results demonstrated that organizational support moderates’ innovation adoption, circular economy preparedness, and environmental sustainability in peru and supports hypotheses h3 and h4. table 5 outlines these results. table 5: a path analysis relationships beta standard deviation t statistics p values cer -> ens 0.323 0.070 4.601 0.000 cer*ors -> ens 0.101 0.053 1.929 0.028 iad -> ens 0.222 0.069 3.234 0.001 iad*ors -> ens 0.108 0.060 1.786 0.039 ors -> ens 0.240 0.066 3.668 0.000 figure 4. structural assessment model figure 5. moderation analysis 3. discussions the results demonstrated a correlation between innovation uptake and environmental sustainability. this is backed by garavan et al. (2021)'s research on the importance of innovation adoption in environmental sustainability. the research indicates that outmoded resources, technologies, and procedures that contribute to environmental pollution can be easily eliminated from commercial organizations where administrators prioritize innovation adoption when picking resources and techniques. consequently, businesses contribute to environmental sustainability. following the findings of shahzad et al. (2020), adopting innovative technical resources, energy resources, and materials enhances organizational personnel's ability to evaluate environmental conditions. it fosters the development of sustainable environmental performance. therefore, recent research suggests a positive correlation between innovation uptake and ecological sustainability. the results demonstrated a correlation between circular economy readiness and environmental sustainability. these findings are consistent with sharma et al. (2020)'s study on the importance of the circular economy in environmental sustainability. the study indicated that waste emissions and pollution are reduced when agbioforum, 24(2), 2022 | 233 acobo, cano, paricahua et al. — the role of innovation adoption and circular economy readiness on the environmental sustainability… businesses can employ renewable resources in their operations and are prepared for circular economy integration. therefore, the environment's quality is sustainable. these results concur with the research conducted by schwarzer et al. (2021). this study hypothesizes that an economy is less likely to pollute the environment if its business organizations have the financial resources, competent human capital, and proper tactics to implement circular economy concepts. consequently, environmental sustainability is achievable. results indicated that organizational support significantly moderates the relationship between innovation adoption and environmental sustainability. cheng et al. (2021)'s investigation supports these findings. according to the previous study, organizational workers frequently identify environmental difficulties and wish to alter the currently utilized resources and processes. innovation is only possible in some organizational domains when personnel receive organizational support. therefore, innovation adoption has the greatest impact on environmental sustainability when organizational support is present. these findings are also consistent with the findings of mughal et al. (2022), who assert that support from top management and business owners enables organizational staff to think creatively and put innovative ideas into practice. additionally, supportive firms ensure that their team works in a sustainable atmosphere. consequently, organizational support reinforces the connection between innovation uptake and environmental sustainability. results indicated that organizational support significantly moderates the relationship between circular economy readiness and environmental sustainability. these findings are reinforced by the research of donati et al. (2020), which demonstrates that when employees have access to organizational assistance, they strive to accomplish their duties efficiently, regardless of their motivations. these employees are likely to assess the environmental implications of corporate activities and prepare to implement a circular economy. these organizations contribute to environmental preservation. these findings are also consistent with kiss et al. (2019)'s research, which indicates that an organization's sense of duty towards its employees pushes its owners and top management to create a clean work environment and be prepared for the circular economy. consequently, organizational assistance strengthens the connection between circular economy preparedness and environmental sustainability. 4. implications because of the study's contribution to literature, authors can gain insight. this study simultaneously explores the effects of innovation uptake and circular economy preparedness on environmental sustainability. one of the study's contributions is investigating the moderating effect of organizational support on the relationship between innovation adoption, circular economy readiness, and environmental sustainability. this is a preliminary examination of the influence of innovation adoption and circular economy preparation on peru's environmental sustainability. this article has significant empirical consequences for business organizations in peru and other countries with comparable business environments. the report provides corporate management with advice on contributing to environmental sustainability. the research suggests that organizational management should be inclined toward innovation adoption so that company pollution emissions can be decreased and a contribution can be made to environmental sustainability. it also indicates that corporate management must ensure readiness for the circular economy because the circular economy would help businesses achieve environmental sustainability. the research aids policymakers in formulating environmental sustainability strategies based on innovation uptake and circular economy preparedness. to ensure environmental sustainability and environmental sustainability, the current article further stipulates that organizational representatives must demonstrate support for subordinates. in addition, the study suggests that firms must have a supportive attitude toward their employees to prepare for a circular economy and environmental sustainability. 5. conclusion the purpose of the study was to investigate the relationship between innovation adoption, circular economy readiness, environmental sustainability, and the function of organizational support. peruvian data on organizational support, innovation adoption, preparation for the circular economy, and environmental sustainability were gathered via questionnaires. the results demonstrated a correlation between innovation uptake and readiness for the circular economy and environmental sustainability. the study suggests that when companies implement novel materials, physical resources, and procedures, they can enhance environmental performance and maintain environmental quality. the results also revealed that companies prepared for the circular economy might safeguard the environment and ensure environmental sustainability. the results also demonstrated that organizational support is an essential moderator between innovation adoption, preparation for the circular economy, and environmental sustainability. if employees have access to organizational assistance, the organization is more likely to embrace innovation, be prepared for the circular economy, and achieve environmental sustainability. 6. limitations the study has only shed light on two variables for assuring individual businesses' environmental sustainability: innovation adoption and circular economy readiness. other aspects, such as corporate social responsibility, green human resource management, and green supply chain, can aid in decreasing environmental pollution and supporting the ecosystem. therefore, future researchers investigating environmental sustainability should take these aspects into account. in addition, a single mediator, such as organizational support, has been investigated agbioforum, 24(2), 2022 | 234 acobo, cano, paricahua et al. — the role of innovation adoption and circular economy readiness on the environmental sustainability… between innovation adoption, circular economy readiness, and environmental sustainability. future academics must feel obligated to examine at least one mediator between innovation uptake, preparation for the circular economy, and environmental sustainability. references aboelmaged, m., & hashem, g. 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the current study investigates the effect of specialized loans from agricultural banks to smes, such as project loans, objective loans, commodity loans, and liquidity loans, on the financial performance of agricultural banks in iraq. the study retrieved data from the databases of fifteen agricultural banks from 2011 to 2020. the relationship between variables has been examined using the method of moments quantile regression (mmqr). the results demonstrated a correlation between project financing, objective financing, commodity financing, and liquidity and the financial performance of agricultural banks in iraq. the article guides decision-makers in the formulation of strategies to increase financial return through the use of specialty loans. key words: specialized loans, project finance, objective finance, commodity finance, liquidity, financial return, small and medium enterprises. 1. introduction the banking sector of an economy is essential for higher economic development and financial development stability. it helps companies involved in various enterprises satisfy their financial needs, conducts various financial transactions, and supports savings and investment programs (demirgüç-kunt et al., 2021). additionally, the banking industry assists the government in managing monetary and fiscal policies. it leads to the government's infrastructure development and capital formation. moreover, because banks provide a platform for transferring funds between areas and exchanging one currency for another, they facilitate trade at the national and international levels (ramzan et al., 2021). the two primary roles of banks are to accept deposits and to provide loans. under some conditions, banks offer a combination of interest and a few small deposit fees. interest is banks' principal source of income, whereas loans are their primary source of revenue. the performance of banks is determined by their financial returns, the returns on loans, and the amount of interest it generates (nizam et al., 2019). loan repayment and interest rates depend on the frequency and amount of borrowing. agricultural banks are specialized banks that are established and operated to promote agriculture. smalland medium-sized companies (smes) specialized loans from banks, such as project financing, objective finance, and commodity finance, are of lower volume and higher frequency, which is advantageous for banks' financial returns (hameedi et al., 2021). project financing is a sort of specialized loan in which loans are issued to small and medium-sized enterprises for the execution of a particular project. under project finance, the interest rate is proportional to the size and duration of the project. as the economic, eco-friendly infrastructure projects promote the country's development and the banks are assured of payment, the banks' financial returns might increase (ekinci et al., 2019). throughout their existence, various government and private-sector organizations have pursued varying goals. loans are offered to clients under objective finance to attain certain objectives, which may be of many forms. this financing is advantageous for banks because the possibility of losing loan principal or interest is minimal. moreover, commodity loan supplied to smes for handling any form of commodities to advance production, trade, construction, and development, boosts the financial returns of the banks (taghizadeh-hesary et al., 2019). this study examines the performance of iraqi banks. iraq is a rising nation with an economy in the upper middle class. the nominal gdp of iraq in 2022 is $297.341 billion. however, the purchasing power parity is $512.926 billion. iraq has a burgeoning banking industry (jadah et al., 2020). technology and banking services in iraq are on the verge of catching up to international standards. nonetheless, some issues must be handled. in 2017, according to the world bank, only 23% of the iraqi population had bank accounts. this is even though iraqis continue to rely on cash payments. financial development has been hampered by a lack of confidence in the banking system and an insufficient grasp of cashless payment methods (salman et al., 2021). despite having 53 privately owned banks (psob), seven state-owned banks (sob), and 14 foreign bank branches, the country today has 74 financial institutions. however, in 2021, the banking industry only contributed 1.94 percent to iraq's gdp. despite having 904 sites throughout the country, most of iraq's banks are located in baghdad and basra, which account for 37.1% and 9.3% of all branches, respectively mailto:lasry08@gmail.com mailto:bus.khalid.hussein@uobabylon.edu.iq agbioforum, 24(2), 2022 | 129 jawad and al-marzooge. — the impact of specialized loans of agricultural banks for small and medium enterprises (smes)… (ali et al., 2021). different iraqi banks include the agricultural cooperative bank of iraq, babylon bank, bank of baghdad, bank of iraq, basrah international bank for investment, dar es salaam investment bank, gulf commercial bank, industrial bank of iraq, iraqi islamic bank, islamic cooperation investment bank, rafain bank, rasheed bank, real estate bank of iraq, trade bank of iraq, warka bank, etc. (ojah et al., 2019). however, the iraqi baking industry is emerging and achieving economic success. however, the rate of banking development is not as rapid as it has to be to meet economic demands and compete with the financial sectors of other economies. authorities must pay attention to the performance of individual banks. this study is a step toward fulfilling this requirement. the study aims to investigate specialized bank loans such as project finance, objective financing, and commodity finance, as well as the banks' liquidity and financial returns. the current study is not merely a rehash of previous research; it provides numerous contributions to the field. in past research, the relationship between specialist loans and bank performance has been addressed primarily. the effects of project finance, objective finance, and commodity finance on the financial returns of banks have been examined in only a few research. this study contributes to the literature by examining the effects of project finance, objective finance, and commodity finance on the financial returns of banks. second, this study did not merely investigate the effects of speciality loans such as project finance, objective finance, and commodity financing on banks' financial returns. but it sheds light on the specialized loans offered by agricultural banks to small and medium-sized enterprises. thirdly, the study explores the role of project finance, objective finance, and commodity financing in the financial returns of iraqi banks for the first time. the paper contains numerous interconnected sections. analyzing past studies, the second section discusses the relationship between project finance, objective finance, commodity financing, liquidity, and the financial returns of banks. the final section outlines the research methods utilized. the fourth section presents the research findings following data analysis. in conversations, these findings are consistent with those of prior research. the study's ramifications, conclusion, and limitations are briefly discussed at the end. 2. literature review a bank's financial services of savings, deposits, money transfer, collection and payment of money, investment, document security, etc., are crucial to the economic development of a nation. the principal source of earnings affecting the financial performance of banks is interest on loans. this source of banks' financial success is influenced by their specialized business loans (almagtome et al., 2020). this study investigates the effects of speciality loans such as project finance, objective finance, and commodity finance on banks' financial returns. the supply of project, objective, and commodity finance boosts loan earnings, while the demand for banking services raises banks' financial returns. previous work has investigated the relationship between project finance, objective finance, and commodity finance and the financial returns of banks. the following sections describe previous studies examining the relationship between project finance, objective finance, commodity finance and banks' financial returns. project finance is one of the specialized bank loans available. it is offered to clients for the completion of specific projects. as its recovery is contingent upon the project's completion and the interest rate can be based on its size and profitability, it creates substantial profits for banks. it strengthens their financial situation (almaleki et al., 2021; kuswardinah, ansori, rachmawati & fajri, 2021; ndiaye, ceesay & moussa, 2022; guellil & benhabib, 2022; jethwani & ramchandani, 2022). alonso-conde et al. (2020) examine the effects of project financing (green bonds) on the profitability and creditworthiness of project financing organizations. this paper examines a case of financing a project with a green bond for the sagunto regasification plant. this funding is offered to the sagunto regasification plant for ecofriendly enhancements to its operations, including the loading, unloading, and storing of liquefied natural gas from methane tankers. the study suggests that when banks or financial institutions provide project financing through green bonds, it increases capital, improves the use of capital for those projects, and reduces project costs and risks. in the end, the risks associated with bank funding diminish, and they can increase their financial returns. anwar et al. (2020) investigate rural banks' project financing to micro and small enterprises (msbs) and banks' financial returns. the research spanned from 2012 to 2016, and data was collected from 212 rural banks operating in various cities in the indonesian state of west java. the writers made use of the performance of rural banks was analyzed using data envelopment analysis, and the relationship between bank performance and particular project loans to msbs was examined using panel data analysis. the research reveals that special project financing from rural development banks aids in expanding micro and small enterprises (msbs). this financing could be financially lucrative for banks, resulting in better profits. liu et al. (2021) examine the impact of project finance on agricultural technical innovation and rural financial development banks. from 2003 to 2015, panel data regarding variables were collected from 31 provinces in china. using available data, descriptive statistics were employed to conclude the relationship between components. the study hypothesizes that financing agricultural technological innovation results in increased agricultural output and sustainability. it would increase project finance earnings while also increasing banking services' marketing opportunities. consequently, banks' financial returns improve. thus, project finance adds positively to the financial returns of banks. commercial banks also give specialised financing to agbioforum, 24(2), 2022 | 130 jawad and al-marzooge. — the impact of specialized loans of agricultural banks for small and medium enterprises (smes)… businesses of varying sizes to accomplish a certain aim. they determine the interest rate and payment date based on the type and intent of the objectives to be achieved. these particular loans or credits assist the recipient organizations in developing and expanding their businesses while generating revenue and promoting the bank's services. therefore, objective financing growth increases banks' financial returns, and the relationship between objective financing and bank financial returns is strengthened. (jan et al., 2019; althawaini, elmulthum & morsi, 2022; khong, 2022). danoshana et al. (2019) study the connection between objective funding for corporate governance and the financial returns of financial organizations such as banks. study samples were selected to collect information on the funding and financial strength of sri lanka's 25 listed financial institutions. from 2008 to 2012, statistics and panel data for sri lankan financial institutions were obtained from secondary sources. the data analysis demonstrates that providing enterprises with objective financing for implementing corporate governance significantly enhances the firms' management and effectiveness, boosting their overall performance and ability to repay banks responsibly. these short-term financing objectives limit the risk of funds recovery and preserve businesses' financial returns. soewarno et al. (2020) did a study to assess the effects of speciality loans, such as objective financing, on the financial returns of banks. the study indicates that small and medium-sized firms typically experience financial difficulties. in this circumstance, they cannot achieve objectives such as corporate governance, employee satisfaction, maintaining marketing, gaining equity market confidence, and maximizing profitability. however, the availability of objective financing from banks and other financial organizations assists businesses in achieving their goals. under these conditions, it is more likely that businesses will interact with banks for their purposes, which significantly improves the financial returns of banks. due to particular objective financing, julia et al. (2020) shed light on the financial returns of islamic and conventional banks. the writers picked several commercial banks that financed green initiatives in bangladesh from 2012-2014. the performance of five islamic and conventional banks was evaluated using secondary data obtained from annual and specific sustainability reports, and the data was validated via interviews. the research reveals that their financial returns are more significant when banks provide financing, especially for green aims. agarwal et al. (2020), in a research work on bank lending and commodity prices, examine the relationship between commodity financing and bank finance performance. the research sample consisted of 582 banks in forty countries. the banks' balance sheets and credit registries were empirically studied to obtain information regarding commodities finance for commodity exports and financial returns. then, a regression coefficient analysis was performed on test data to determine the association between components. the article argues that when banks supply exporters with specialist commodity finance, the quality of the goods to be exported is maintained and exporting commodities can provide substantial profits. this increases demand for the bank's loans and the total interest income from loans. therefore, commodities finance adds positively to the financial returns of banks. aduba jr et al. (2021) investigate the effects of commodities financing on the financial growth of banks. for this investigation, information was acquired from japanese commercial banks. when a policy is enacted to allow special commodity loans for smes, banks and other financial institutions can boost marketing for financial goods. the specialized loans pay more with less risk. therefore, commodity financing is essential for enhancing and maintaining the financial returns of banks. kukah et al. (2022) investigated the relationship between ghana's energy infrastructure commodity financing and banks' financial returns. the surveys were used to gather data from respondents. a total of seventy-eight responses were deemed comprehensive and informative. the descriptive statistics with a mean score, the kruskal–walli’s test, and discriminant validity were employed to extract results from the data. the results demonstrated that the energy sector advances when banks fund innovative energy infrastructure. as a result, the economy has more prospects for success, and banks ultimately enjoy greater financial returns. kanyangemu et al. (2019) discussed the financing of agricultural commodities by banks and the financial returns of banks. from 1996-1997 to 2016-2017, the authors' focus was on tanzania's agricultural and banking sectors. the study suggests that financing banks, particularly for agricultural commodities, influence the banks' performance in two ways. first, it is less dangerous to retrieve money that has been borrowed, and the growth of agricultural and other related economic sectors boosts demand for banking services. consequently, commodity financing boosts the financial returns of banks. lending money and leasing out various items to customers are the banks' primary sources of revenue. banks need sufficient financial resources for these two revenue streams to meet market demands immediately. the liquidity of the bank's assets impacts its financial resources and, by extension, its income sources. banks with highly liquid assets can better enter into contracts for lending or leasing and thus earn more. thus, improving liquidity increases the financial returns of businesses eklof et al. (2020). sahyouni et al. (2019) examine the influence of liquidity generation on the financial returns of banks. for 2011-2016, data on liquidity generation on assets and returns on average equity were collected from 491 commercial banks in 18 mena countries. the regression analysis was undertaken to determine the association between the factors. the results demonstrated that banks that are successful at creating asset liquidity have effective management of contingent risks. the lowering of risks preserves the profitability of banking institutions. berger agbioforum, 24(2), 2022 | 131 jawad and al-marzooge. — the impact of specialized loans of agricultural banks for small and medium enterprises (smes)… et al. (2019) establish a connection between liquidity creation and banks' financial return consistency. using the panel data method, data on liquidity creation and the stability of banks' financial returns were collected from islamic commercial banks in 24 countries from 2000 to 2014. according to the study, the liquidity of assets is positively correlated with the consistency of banks' financial returns since it helps firms establish consistency in their financial business activities, such as receipts and deposits. 3. research methods this study investigates the effect of project finance, objective finance, commodity finance, and liquidity on the financial return of iraqi agricultural banks. the study utilized the databases of fifteen agricultural banks to gather data from 2011 through 2020. the article constructed the equation based on the following current study variables: 𝑅𝑂𝐸𝑖𝑡 = 𝛼0 + 𝛽1𝑃𝐹𝑖𝑡 + 𝛽2𝑂𝐹𝑖𝑡 + 𝛽3𝐶𝐹𝑖𝑡 + 𝛽4𝐿𝑄𝑖𝑡 + 𝑒𝑖𝑡 (1) where; roe = return on equity t = time period i = banks pf = project finance of = objective finance cf = commodity finance lq = liquidity the study's dependent variable was the financial return assessed by return on equity. in addition, the study measured specialized loans as the independent variable using the ratios of project finance to total finance, objective finance to total finance, and commodity financing to total finance. the study's last control variable was liquidity, assessed by the ratio of current assets to current liabilities. table 1 contains these proxies. table 1: variables with measurements s# variables measurement sources 01 financial returns return on equity agricultural banks 02 specialized loan of agricultural banks the ratio of project finance to total finance agricultural banks the ratio of objective finance to total finance agricultural banks the ratio of commodity finance to total finance agricultural banks 03 liquidity the ratio of current assets to current liabilities agricultural banks the research employed descriptive statistics to examine the specifics of the variables, including standard deviation, mean, maximum, and lowest values. in addition, the article investigated the correlation between variables using a correlation matrix. in addition, the study utilized the variance inflation factor (vif) to investigate multicollinearity; the corresponding equations are shown below. r2 y 𝑌𝑖𝑡 = 𝛼0 + 𝛽2𝑋2𝑖𝑡 + 𝛽3𝑋3𝑖𝑡 + 𝛽4𝑋4𝑖𝑡 + 𝛽5𝑋5𝑖𝑡 + 𝑒𝑖𝑡 (2) 𝑗 = 𝑅𝑌 2, 𝑅𝑋1 2 , 𝑅𝑋2, 2 𝑅𝑋3, 2 𝑅𝑋4, 2 𝑅𝑋5 2 (3) 𝑇𝑜𝑙𝑟𝑎𝑛𝑐𝑒 = 1 − 𝑅𝑗 2 𝑉𝐼𝐹 = 1 𝑇𝑜𝑙𝑒𝑟𝑎𝑛𝑐𝑒 (4) finally, the researchers have used the mmqr approach to examine the association among constructs. this approach was introduced by machado et al. (2019) and had the characteristics of being “robust to outliers.” it significantly controls the heterogeneity across panel cross-sections (aziz et al., 2020). it also provides the dynamic association among the variables in different conditions, even if the framework is nonlinear (ike et al., 2020). so, the conditional quantile estimation is 𝑄𝜏(𝜏/𝑋) for the locational-scale alternate model is given as: 𝑌𝑖𝑡 = 𝛼𝑖 + 𝑋𝑖𝑡𝛽 + (𝛿𝑖 + 𝑍𝑖𝑡𝜆)𝑈𝑖𝑡 (5) in equation (5), the probability represented by 𝑃{𝛿𝑖 + 𝑍𝑖𝑡𝜆 > 0} = 1. moreover, 𝛼, 𝛽, 𝜆 𝑎𝑛𝑑 𝛿 are the parameters, and z represents the k-vector of component x. thus, the components are changed with element l is given as: 𝑍𝑙 = 𝑍𝑙 (𝑋), 𝑙 = 1, … … , 𝑘 (6) hence, using equation (5), the conditional quantile of y is given below: 𝑄𝜏(𝜏/𝑋𝑖𝑡) = (𝛼𝑖 + 𝛿𝑖𝑞(𝜏)) + 𝑋𝑖𝑡𝛽 + 𝑍𝑖𝑡 𝜆 𝑞(𝜏) (7) in equation (7), 𝑋𝑖𝑡 represents the independent variables such as pf, of, cf and lq, while 𝑌𝑖𝑡 is the predictive construct like roe, which is conditional as 𝑋𝑖𝑡 . on the other hand, the distinct effects could not establish intercept shift. so, 𝑄(𝜏) is estimated as mentioned below: 𝑀𝑖𝑛𝑞 = ∑ ∑ 𝑝𝜏𝑖𝑡 (𝑅𝑖𝑡 − (𝛿𝑖 + 𝑍𝑖𝑡 𝜆 )𝑞) (8) 4. findings of the study the research employed descriptive statistics to examine the specifics of the variables, including standard deviation, mean, maximum, and lowest values. the results revealed that the average roe value was 15.109 percent, the average pf value was 11.098 percent, and the average cf value was 72.019 percent. in addition, the results revealed that the of average value was 79.092 percent while the lq average value was 3.201%. table 2 displays these results. table 2: descriptive statistics variable obs mean std. dev. min max roe 150 15.109 0.123 11.214 22.333 pf 150 11.098 0.784 9.221 17.196 cf 150 72.019 2.091 67.102 81.201 of 150 79.092 1.102 71.298 81.211 agbioforum, 24(2), 2022 | 132 jawad and al-marzooge. — the impact of specialized loans of agricultural banks for small and medium enterprises (smes)… lq 150 3.201 0.281 2.101 5.302 in addition, the article investigated the correlation between variables using a correlation matrix. the results indicated that project financing, objective financing, commodity financing, and liquidity have a favorable relationship with the financial return of agricultural banks in iraq. table 3 displays these results. table 3: matrix of correlations variables roe pf cf of lq roe 1.000 pf 0.701 1.000 cf 0.592 0.734 1.000 of 0.321 0.528 -0.753 1.000 lq 0.382 0.335 -0.323 -0.643 1.000 in addition, the vif was utilized to assess multicollinearity. the results demonstrated that vif values are less than five and reciprocals are more significant than 0.20. these results did not show multicollinearity. table 4 displays these results. table 4: variance inflation factor vif 1/vif pf 3.782 0.264 cf 2.102 0.476 of 2.021 0.495 lq 1.902 0.526 mean vif 2.452 . the researchers have utilized the mmqr to investigate the relationship between constructs. the results indicated that project financing, objective financing, commodity financing, and liquidity have a favorable relationship with the financial return of agricultural banks in iraq. in addition, the results revealed that the pf has a considerable impact on roe in quantiles 1 through 9 and that the cf has a significant relationship with roe in quantiles 1 through 9. in addition, the results revealed that the of has a considerable influence on roe in quantiles 1 to 5 and 7 to 9, and that lq has a significant relationship with roe in quantiles 1 to 4 and 7 to 8. table 4 displays these results. table 5: panel quartile estimation (mmqr) variables method of moments quantile regression (mmqr) location scale grid of quartiles 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 pf 0.732*** 0.663* 0.637** 0.671** 0.323* 0.527** 0.621* 0.222* 0.432* 0.433* 0.432* cf 0.721** 0.819* 0.772* 0.666* 0.291* 0.652* 0.772** 0.921** 0.331** 0.298* 0.102** of 0.652** 0.212** 0.749* 0.272* 0.418* 0.291* 0.429* 0.091 0.102 0.713** 0.882* lq 0.611* 0.552** 0.200* 0.778** 0.661** 0.821* 0.011 0.076 0.728* 0.899* 0.036 ***, **, and * represent significant level at 1%, 5%, and 10%, respectively 5. discussions the results demonstrated a positive correlation between project financing and the financial performance of banks. these findings are consistent with ichsan et al. (2021)'s examination of the impact of specialist loans on bank performance. the study demonstrates that when banks have a policy of providing specialized loans for various projects, they can increase their marketing for financial services. the number of clients increases the banks' money creation and earnings. consequently, increased returns on equity boost the financial performance of banks. these findings are reinforced by anvarovich (2020)'s research on the effect of project finance on bank performance. in a country where small and medium-sized enterprises (smes) receive project loans, banks' business needs expand, and their financial performance is likely to improve. the findings demonstrated that objective finance has a favorable correlation with the financial success of institutions. these results are consistent with hunjra et al. (2022)'s conclusion that small and medium-sized businesses confront financial constraints and an inability to complete specific duties. the bank's policy of providing objective financing assists these businesses in completing various responsibilities and achieving company performance. this subsequently increases demand for bank products and boosts their equity returns. these findings are further corroborated by bătae et al. (2021), who demonstrate that in objective finance, banks have the assurance of receiving their capital, plus interest, immediately following the completion of an objective. it strengthens the bank's financial standing. the results demonstrated a positive correlation between commodities finance and the financial performance of agbioforum, 24(2), 2022 | 133 jawad and al-marzooge. — the impact of specialized loans of agricultural banks for small and medium enterprises (smes)… banks. these results are consistent with haralayya (2021)'s study. this study hypothesizes that banks and other financial institutions with a policy of granting loans to small and medium-sized enterprises (smes) to produce and distribute various commodities can increase their income sources. therefore, they can enhance their financial performance. these findings are also corroborated by ——-'s research, which demonstrates that commodities finance boosts the frequency of loan distribution and the overall revenues of banks. increased returns on equity contribute to improved financial success. the results indicated that liquidity is positively associated with the financial performance of banks. the past research of li et al. (2022), which studies the impact of liquidity on the performance of banks, supports these findings. this earlier study asserts that the increased liquidity of assets helps financial institutions to make loans and investments. therefore, they can provide greater returns on equity. these findings are consistent with the findings of (gazi et al., 2022), who theorize that increased liquidity enables banks to more effectively market their services and demonstrate business efficacy; they can sell more, earn more, and exhibit superior financial performance. 6. implications many innovative aspects of the current study can be utilized by scholars in their future work on bank performance. this study examines the effects of speciality loans, such as project finance, objective finance, commodity financing, and liquidity, as a controlling element on banks' financial performance. the financial performance of the bank is measured by return on equity. the researchers are primarily concerned with the financial performance of agricultural banks in iraq. this study has numerous empirical implications for the banking sector of emerging economies, particularly for agricultural development-focused banks. there is a guideline outlining how agricultural banks' management must formulate policies to preserve their financial performance. the report recommends that agricultural banks provide project financing to small and mediumsized enterprises to increase return on equity. it is also advised that loan regulations be formulated, so financial institutions favor objective loans to agricultural smes to increase equity returns. in addition, the study reveals that agricultural banks must give commodity loans to smbs to raise and preserve equity returns. the article aids policymakers in the development of policies to improve financial return through the use of speciality loans. in addition, the authors of this study assert that agricultural banks must own highly liquid assets, which ensures greater returns on equity. 7. conclusion this study aimed to determine the impact of specialist loans on the financial performance of banks. the authors analyzed project finance, objective finance, and commodity finance, as well as the effects of liquidity on returns on equity, and collected data from iraqi banks. the findings reveal a positive relationship between project finance, objective finance, commodity finance, liquidity, and equity returns. the results demonstrated that under project finance, the banks' profits are proportional to the size of the project, and payment is guaranteed at the project's conclusion with project assets as collateral. this kind of loan distribution boosts banks' returns on equity. in addition, the results suggested that the issue of loans to smbs for specific purposes increases banks' routine functions and creates more significant profits. therefore, returns on equity are greater. the findings demonstrated that financing small and medium-sized enterprises (smes) for producing or selling specific commodities may increase bank profitability and boost equity returns. in addition, the study indicated that the presence of liquid assets enables banks to issue numerous loans and expand their operations. returns on equity improve with the firm expansion. 8. limitations still, there are limits to the current study, and it is believed that future researchers will eliminate them. several aspects, such as project finance, objective finance, commodity finance, and liquidity, that affect returns on equity have been explored in this study. numerous additional variables remain unaccounted for, including firm size, financial management, and interest rate. future authors must also include these aspects when evaluating the financial performance of institutions. in addition, data on the financial performance of banks concerning project finance, objective finance, commodity finance, and liquidity were collected from exclusively agricultural banks in iraq. the data from a single economy's banking sector cannot be sufficient for a complete and usually valid assessment. therefore, it is envisaged that academics will utilize data from numerous banking systems to produce broad study conclusions applicable to any economy. references aduba jr, j., & izawa, h. 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al-kwifi et al., 2019), marketing (kadirov, 2014; woodall, 2012), shopping behavior (khalek et al., 2015). while according to associate vp head of hi-tech, property, consumer industry mark plus inc, gasanova savitry “the growth of the beauty industry in indonesia has reached double digits (16%) when compared to other countries. only indonesia and egypt form around the world are experiencing fast growth, where the number can reach two digits. from this theory and phenomenon, this research focuses more on product exploration on preparation, production, display, marketing and consumption. the potential of the halal market continues to grow and expand, driven by the growth of the muslim population. the use of halal products is not only for muslim consumers, but also for non-muslim consumers ( khan et al., 2019; talib et al., 2015; wibowo & ahmad, 2016). some consumers believe that halal products are safer, have a guarantee of cleanliness and good quality (potluri & potluri, 2018; zailani et al, 2017). according to (khan et al., 2019; soon et al., 2017; tieman et al., 2012) halal products and services involve every aspect of activity or productivity along the supply chain. the supply chain is an important part in the creation of halal products so that manufacturers need to realize the importance of implementing halal supply chain management. the supply chain management contains different standards to ensure the halal-ness of a product, which starts from upstream to downstream to ensure that it is truly halal. mohamed et al., (2020); zulfakar et al.,( 2016). therefore, to ensure the halal ness of a product, it is necessary to have an institution or organization under the supervision of the government, namely halal certification organizations (hco) which play an important role (ab talib et al, 2017; nawi & nasir, 2014; demirci et al., 2016). talib et al., (2020); ali et al., (2017) states that the main purpose of hco is to determine whether a product is halal or not and to guarantee the quality of the product. this certificate is important for aesthetic clinic where skincare products from aesthetic clinic have become mailto:indrianawati-u@feb.unair.ac.id mailto:liizah.gindia.manzil-2015@feb.unair.ac.id mailto:norlinda.rozar@umt.edu.my agbioforum, 23(2), 2021 | 23 usman, manzil and rozar. — assessing halal supply chain performance of skincare product through scor model at aesthetic clinic… popular products in recent years. the increasing market opportunities associated with the beauty products and services industry in indonesia have led many companies to develop business in the beauty sector, both as manufacturers and beauty care service providers. meanwhile, the government of indonesia issued law (uu) no. 33 of 2014 concerning halal product guarantee, government regulation (pp) no. 31 of 2019 concerning implementing regulations of law no. 33 of 2014 (uu jph) and government regulation (pp) no. 39 of 2021 concerning the implementation of halal product guarantee. especially regarding detailed explanations in the implementation of halal product guarantees and cooperation between institutions in the implementation of halal product guarantees. in light of the above rules, companies related to the beauty industry need to increase their capacity and performance related to halal regulations, including measuring the performance of the halal supply chain to ensure the halal ness of their products and services. the aesthetic clinic is a company in surabaya indonesia that makes products and offers halal-certified beauty care services. halal supply chain activities for beauty care products are carried out in collaboration with several institutions such as suppliers of raw materials, manufacturers and beauty care services. the increasing demand for halal skincare products makes companies strive to maintain consumer confidence in the products and services offered, so companies need to take performance measurements to strengthen product halal assurance and product supply chains. the aim of this study is to analyze the performance measurement of the halal supply chain activity at the aesthetic clinic in order to maintain halal product and beauty care service. 2. literature review 2.1 supply chain management. supply chain council a boonut the supply chain: "the supply chain includes every effort involved in producing and delivering the final product from the supplier's supplier to the customer's customer" (chen & paulraj, 2004, pp. 120-122). related to scm theory is the work of ellram & cooper (2014), a work that is directly related to the definition and conceptualization of scm. they point out that scm has been identified as a process, discipline, philosophy, governance structure, and function. supply chain management (scm) is an approach that starts with planning and controlling materials, logistics, services, and information flows from suppliers to manufacturers or service providers to end clients. hazen et al., (2020); liu et al., (2018); poniman et al., (2015). a simpler explanation of supply chain management defines supply chain management as the integration of business processes from end users through original suppliers providing products, services and information that add value to customers (balasubramanian & shukla, 2017; herhausen et al., 2015; lee, 2015). scm practices are defined as a set of activities undertaken by an organization to promote effective supply chain management (tachizawa et al., 2015; wong et al., 2015) as an approach applied in the integration, management and coordination of supply, demand and relationships to satisfy clients in an effective manner and as an approach to involve suppliers in decision making, encourage information, and share and seek new ways to integrate upstream activities. as a result, it involves developing customer contacts with customer feedback to integrate downstream activities and deliver orders directly to customers (jamkhaneh & ghadikolaei, 2020; wang et al., 2015). three main keys emerge from various definitions: activities, benefits, and constituents/components: firstly activities, containing material and information flows, and network of relationships, focusing on internal (within the organization) and external (outside the organization). second, the benefits resulting from implementing an effective scm strategy are that it adds value and increases customer satisfaction. third, the components or parts that make up scm; what organizations, functions and processes are involved in the supply chain (andersson & pardillo, 2020; wan et al., 2016). green et al., (2019); shamsuddoha et al., 2015; ulgen & forslund, 2015) identified 24 scm practices from previous research and formed six constructs: supply chain integration, information sharing, supply chain characteristics, customer service management, geographical proximity; and jit capability. scm research can be classified into three categories (zelbst et al., 2014) : 1. operations: deals with the day-to-day operations of facilities such as factories or distribution centers to ensure that the most profitable way to fulfill customer orders is executed. examples include inventory management and production, planning, and scheduling. the focus is on developing mathematical tools that assist in the efficient operation of the overall supply chain as well as the development of software and better manufacturing methods and technologies. 2. design: is a supply chain focused on the location of the decision place and the purpose of the four categories of models are found in the literature: (1) deterministic analytical models, (2) stochastic analysis models (lee, 2015), (3) economic models, and (4) simulation models. good design should integrate the various elements of the supply chain and seek to optimize the entire chain rather than individual entities. information sharing and its control play an important role in integration, which requires highly coordinated efforts from both engineers and managers (lee, 2015). 3. strategy: strategic decisions are made by business managers, which require understanding supply chain dynamics and developing objectives for the entire chain. this task also includes critical evaluation of alternative supply chain configurations and partnerships, and determines opportunities that can increase power agbioforum, 23(2), 2021 | 24 usman, manzil and rozar. — assessing halal supply chain performance of skincare product through scor model at aesthetic clinic… competitiveness of companies as part of a supply chain or supply chain network. 2.2 halal supply chain management there is no doubt that the halal supply chain exists, as this is based on several studies (abdul et al., 2018; azmi et al., 2020; tan et al., 2017) and consumer consumption trends now focus not only on halal products but also halal logistics and supply chain. there are several factors responsible for the emergence of halal supply chains. due to the complex nature of supply chain management, cases of questionable halal status, and halal integrity issues, there is a more pressing need for halal supply chain management. several studies conducted by (rahim et al., 2017; talib et al., 2015; tieman et al., 2012) shows that muslim consumers demand halal supply chains to further expand the integrity of halal products. referring to ms1500:2009 halal food production, preparation, handling and storage general guidelines (second revision), halal products and services: 1. contains no non-halal livestock parts or products or products or animals that are not slaughtered in the name of allah and according to sharia methods. 2. does not contain ingredients that are considered unclean (unclean). 3. safe and harmless. 4. not prepared, processed or produced using contaminated tools or equipment or shared with nonhalal or unclean. 5. the ingredients or by-products do not contain human parts. 6. during the manufacturing, preparation, packaging, storage or distribution process, products must be physically separated between halal and haram products. (shariff & ahmad, 2019; zulfakar et al., 2012) explained how halal supply chain is similar to conventional supply chain, which consists of planning, implementing, and controlling distribution and storage, but only for halal certified products, from point of origin to point of consumption. figure 1 shows the halal supply chain model, formulated. figure.1 halal supply chain model source: tieman et al., (2012) in the halal supply chain (rahim et al., 2017; tieman & ghazali, 2014) argue that the factors or stages relevant to halal logistics and supply chain are transportation, warehousing and terminal operations. on the other hand, they also argue that the success of the halal supply chain management depends on a clear definition of halal, halal process requirements, procedures, tracking and tracing both upstream and downstream, tanning, packaging and labeling, organization (collaboration) and halal certification. furthermore, to ensure the success of the halal supply chain and minimize the risk of crosscontamination (between halal and haram), transportation, storage and handling operations must comply with islamic law and meet the requirements of the targeted market ( rashid & bojei, 2020). cosmetic companies must effectively formulate the role of supply chain management strategy (also called value chain analysis), because it will play a key factor in the success of each company (aziz & zailani, 2017; huiying et al., 2016, 2015; karia, 2019), that value chain analysis for agbioforum, 23(2), 2021 | 25 usman, manzil and rozar. — assessing halal supply chain performance of skincare product through scor model at aesthetic clinic… companies seeks to achieve a competitive position in the market, covering the entire value system (or supply chain) in which each company operates. 2.3 critical success factor (csf) for halal supply chain management there are four critical success factors for halal supply chain management. first, government support. the government can encourage new businesses to adopt supply chain management, and this will lead to economic stability, added that government policies and regulations can be a barrier or a supporter in supply chain development. since the halal market is a lucrative business, and with billions of customers, the government is pouring in support to help and promote the halal industry, such as setting up halal certification authorities, providing incentives for halal businesses, funding research on halal-related studies through universities and research institutes as well as organizing halal training for industry practitioners. in the context of halal supply chain management, describe the significant role of government involving planning, developing, implementing, regulating, promoting and educating halal industry players and halal consumers. in indonesia, there is an institution called lppom mui. institute for the study of food, drugs, and cosmetics (indonesian ulama council) is an institution with a strong task of researching, reviewing, analyzing and deciding whether products are good food and their derivatives, drugs and products cosmetics, is it safe to consume both in terms of health and in terms of religious teachings of islam, that is, is it halal or is it permissible and good for consumption for people. in addition, the institution provides recommendations, formulating provisions and guidance to community services. the reason for founding this institution is that the teachings of islam regulate food and drink in such a way. food and drink can be categorized as: halal, forbidden, or shubhada. second, dedicated assets, which are very important in the halal supply chain and complete separation along the supply chain will enhance halal integrity. the key in specialty assets is the complete separation of halal and non-halal products during distribution, and assets vary from transportation, warehousing or equipment. in the context of halal supply chain and transportation, some authors suggest a complete separation between halal and non-halal products or in other words, specialized cargo or fleet transportation. this step is considered necessary because the mixing of halal and non-halal together during transportation activities, non-halal will be evenly distributed or widespread thus canceling the halal status. although transportation is a major cost factor in logistics services, ranging from 25 per cent to 50 per cent of overall logistics costs. halal logistics players believe that halal integrity is limited to containers and transport vehicles. third, information technology, similar to conventional logistics, is an integral element in ensuring the total halal supply chain. successfully discussed the adoption of information technology among halal logistics service providers and to ensure the integrity of halal products. therefore, information technology has the ability to improve the halal supply chain, prevent unnecessary transportation, ensure better supply chain regulation and improve halal performance at the destination. this shows that information technology is a critical success factor for the halal industry, especially the halal supply chain, in order to maintain the integrity of halal products or services and halal status. fourth is collaborative relationship. supply chain collaboration, according to is divided into two categories, namely vertical and horizontal collaboration, which is consistent with the definition. vertical collaboration concerns external collaboration with suppliers and customers, while horizontal collaboration deals with external collaboration with competitors or noncompetitors from other organizations. in addition, there suggest that the elements of supply chain collaboration are trust (visibility), mutuality, exchange of information (information technology), and openness and communication. supply chain collaboration and halal have something in common, namely the importance of trust. for a halal supply chain to be successful, partners must trust each other by exchanging information, transparently or honestly with clear communication that will be mutually beneficial for all. 2.4 halal certification according to ( talib et al., 2016; akın & okumuş, 2020; nakyinsige et al., 2012), halal certification is proof that the procedure for a product is made in a halal way, providing assurance to consumers because the product is safe for muslim consumption. this is consistent with (vanany et al., 2020) who say that halal certification is a document issued by an islamic organization certifying that the products listed in it meet islamic guidelines. halal certification in the form of the original halal logo or official certificate. in addition to showing products or services that are produced or prepared according to islamic law, halal certification symbolizes trust, satisfaction, cleanliness, health and promotes a good lifestyle. halal certification is very important for the success of the halal supply chain because it serves as an example for other components and activities in the halal supply chain. the stages for achieving halal certification process are, 1. understand the halal certification requirements and attend sjh training, 2. implementing the halal assurance system (has), 3. prepare halal certification documents, 4. register for halal certification (upload data) to www.elppommui.org. 5. monitoring pre audit and payment of certification contract, 6. audit implementation, 7. carry out post-audit monitoring and 8. obtaining halal certificate, valid for 2 (two) years. 2.5 performance measurement performance measurement is an important aid for making judgments and making decisions in an organization (beske et al., 2015; jääskeläinen, 2018; keely et al., 2014; smith & bititci, 2015; neely et al., 1995) defines performance measurement as the process of measuring the effectiveness and efficiency of actions. effectiveness is the extent to https://id.wikipedia.org/wiki/pangan https://id.wikipedia.org/wiki/obat-obatan https://id.wikipedia.org/wiki/kosmetika https://id.wikipedia.org/wiki/islam https://id.wikipedia.org/wiki/halal https://id.wikipedia.org/wiki/halal https://id.wikipedia.org/wiki/haram https://id.wikipedia.org/wiki/syubhat http://www.e-lppommui.org/ http://www.e-lppommui.org/ agbioforum, 23(2), 2021 | 26 usman, manzil and rozar. — assessing halal supply chain performance of skincare product through scor model at aesthetic clinic… which customer requirements are met and efficiency measures how economically the company's resources are used when providing a predetermined level of customer satisfaction. the performance measurement system is described as an overall metric unit used to measure the efficiency and effectiveness of actions. there eight main objectives of performance measurement: evaluate, control, budget, motivate, promote, celebrate, learn, and improve. meanwhile, there are several reasons for an organization to measure performance, namely, success identifications to identify whether the organization is meeting customer requirements: except measuring, how to know that the organization is providing the services/products that customers need, helps understand the process: confirming what is known or revealing what is not known identify where there are bottlenecks, waste, etc., and where improvements are needed, as well as helps ensure that decisions are based on facts, not on assumptions, emotions or beliefs or intuition, shows if the planned repairs actually happen. presents a number of characteristics found in effective performance measurement systems. these characteristics include: inclusivity (measurement of all relevant aspects), universality (allows comparison under various operating conditions), measurability (required data can be measured), and consistency (measures are consistent with organizational goals). there are several things that underlie performance measurement activities, first, performance measures need to be aligned with the organization's strategy. second, measurement must influence performance and third, size must be reliable. 2.6 supply chain performance measurement to fully understand how performance measurement is developed, it is necessary to know how the supply chain is affected by factors such as: supply chain model, industry, relationships, integration and differences between scm members, sc strategy and strategic objectives, structure, complexity and processes, stakeholders, product demand and characteristics, level of regulation, scope of sc, globalization and geographic scope, number of sc participants, technology, culture and attitudes of the people involved. other factors include infrastructure, operating knowledge, corporate governance, social climate, innovation. it is also important to note that within a supply chain there may be differences in processes between sc partners or between geographic areas. the supply chain model mostly uses two different performance measures: costs may include inventory costs and operating costs; a combination of cost and customer response, which includes lead time, out-of-stock probability, and fill rate. proponents of the supply chain operations reference model (scor), supply chain performance should be measured at multiple levels and use five metric categories, namely: reliability, responsiveness, flexibility, cost and efficiency indicators. 2.7 supply chain operation reference (scor) supply chain operation reference (scor) was developed in 1997 by the supply chain council (scc), a non-profit organization founded in 1996 and has been described as a “systematic approach to identifying, evaluating and monitoring supply chain performance”. figure 2. supply chain operation reference (scor) model source: supply chain council. 2012. scor version 11.0 supply chain council (scc) has developed the latest model scor version 11.0 in 2012 identifying six main management processes. 1. plan, consist of planning activities related to supply chain operations. this includes gathering customer requirements, gathering information on available resources, and balancing needs and resources to determine planned capabilities and resource gaps. 2. source, consist of ordering, scheduling, and receiving goods and services. 3. make, consists of activities related to converting materials or creating content for services. 4. deliver, consists of activities associated with manufacturing, maintaining, and fulfilling customer orders. this includes receipts or receipts, validation, and creation of customer orders in the form of scheduling delivery of orders such as product selection, packaging, and delivery of customer invoices. 5. return, consists of activities associated with the return of goods back from customers. this process includes identification of the need for return of goods, return of decisions in the return of goods, scheduling of returns, and delivery & receipt of goods to be developed. as for repair, recycling, renewal, and re-production, it is not explained in the "return" agbioforum, 23(2), 2021 | 27 usman, manzil and rozar. — assessing halal supply chain performance of skincare product through scor model at aesthetic clinic… process but is explained in the "make" process. 6. enable, consist of activities related to supply chain management. this process involves managing business regulations, performance management, data management, resource management, facilities management, contract management, supply chain network management, regulatory compliance management and risk management. 2.8 scor model hierarchy process the scor model contains three levels of process detail. level i is the top level that relates to the type of process. level ii is the configuration level and relates to the process category. level iii is the process element level and is the lowest level in the scope of the scor model. by providing a comprehensive set of supply chain performance metrics, industry best practices, and support system functionality, the scor model enables enterprises to perform highly thorough, fact-based analysis of all aspects of today's supply chains. figure 3. scor's four level source: supply chain council. 2012. scor version 11.0 according to scc (1999), the scor model integrates well-known concepts of business process re-engineering, benchmarking, and process measurement into a crossfunctional framework. the main purpose of the scor model is to improve the alignment between the market and the strategic response of the supply chain, based on the premise that the better the alignment, the better the bottomline performance. the strength of the scor model is that it provides a standardized format to facilitate communication. it is a useful tool for the top management of a company to design and reconfigure its supply chain to achieve the desired performance. 3. research method this study has been designed as a qualitative exploratory case study research. the analysis is carried out based on the data that has been collected through interviews and observation at the field. observation is conducted in the clinic to find information related to the company’s supply chain activity of aesthetic clinic in surabaya. semistructured interviews were conducted with key supply chain personnel of supplier, agents, reseller, customer and the manager of the aesthetic clinic. scor model version 11.0 is used to identify, evaluate and monitor the supply chain performance”. the supply chain performance measurement in this research is focused on the halal dimension of supply chain activities. the analysis uses the halal supply chain model developed through tracking and tracing both upstream and downstream, tanning, packaging and labeling, organization (collaboration) and halal certification. transportation, storage and handling operations that must comply with islamic law and meet the requirements of the targeted market. the research is focused on supply chain process business, especially the halal supply chain performance. the analytical process techniques used in this study are: 1. using scor model version 11.0 for identifying halal dimensions in the company's supply chain flow, including plan, source, make, deliver, and return that occurs in skincare products by conducting interviews with the company's internal parties. 2. using the halal supply chain model (tieman), to measure halal supply chain performance analysis that has been done by the company and supply chain member network. agbioforum, 23(2), 2021 | 28 usman, manzil and rozar. — assessing halal supply chain performance of skincare product through scor model at aesthetic clinic… 3. provide suggestions for improvement on the halal supply chain that has been implemented by the company so far. 4. giving conclusions of halal performance and suggestions of the research. figure below shows the steps of the research. figure 3. stages of the research 4. analysis and result 4.1 analyzing the scor model and halal supply chain based on observations of supply chain paths and activities from suppliers to customers, it can be described. the following figure illustrates the demand and distribution channel activities along the supply chain of aesthetic beauty clinic products and services. figure 4. the supply chain paths and activities of aesthetic beauty clinic products and services the scor adjustment of the model is determined using malaysian halal cosmetic ms2200:1 (2008): islamic consumer goods – part 1: cosmetics and personal care – general guidelines, and indonesian council of ulama no.26 (2013) about halal standards for cosmetic product. analysis of halal supply chain performance is carried out by identifying the suitability or incompatibility of scor components by comparing the halal ness of supply chain activities with halal quality assurance for skincare products at suppliers, companies and customers. agbioforum, 23(2), 2021 | 29 usman, manzil and rozar. — assessing halal supply chain performance of skincare product through scor model at aesthetic clinic… figure 5. the path and supply chain member of aesthetic skincare product figure 5 above shows the supply chain path and the parties involved in the supply chain of skincare products used by the company, to the final consumer. the research focused on the suitability of supply chain activities with halal quality assurance for skincare products used for aesthetic clinic beauty services and fulfilling consumer demand. furthermore, the implementation of halal supply chain is classified based on scor. the following is the identification of the implementation of halal supply chain of suppliers and the companies based on scor components (plan, source, make deliver, return and enabler). 5. supplier based on halal standards of cosmetic and skincare product, there are several factors that need to be considered such as, it contains no parts of the human body; does not contain or contain any part or substance of animal origin which is prohibited by muslims according to sharia law; it contains no genetically modified ingredients or organisms (gmos). there are also several things that need to be considered in the make-up process, including: not prepared, processed, produced or stored using any equipment contaminated with things that are unclean according to sharia law; during the preparation, processing or manufacturing of this product ensures that the product does not touch and remains physically separated from any material that does not meet sharia law; devices, equipment, machinery and processing aids used to process halal cosmetics and personal care must not be made of or contain any ingredients designated as najis by sharia law and will only be used for halal cosmetics; devices, equipment and machines that have previously been used or come into contact with najis must be washed and cleaned as required by sharia law. the packaging material must not be made from any raw material that is designated as unclean by sharia law and packaging materials do not contain any raw materials that can harm human health. information obtained from interviews and observations regarding the components of scor in relation to the supplier's supply chain activities is as follows: plan, “...supplier selection plays an important role in maintaining product quality and halal ness because raw materials are the main point in halal skincare products. aesthetic clinics choose suppliers who have been certified halal to ensure that the raw materials used for their skincare products comply with halal standards.”. source, “…. the process of ordering to suppliers is carried out by the aesthetic clinic as needed, to maintain product quality so that storage is not too long. storage for too long can affect the quality, such as changes in color, odor and changes in the material content.”. make, “…the use of machines, devices and equipment used by suppliers is in accordance with sharia law considering that all selected suppliers have halal certificates. however, one of the factories is still collaborating in producing skincare with another company, which is still unknown whether the partner company is halal certified or not. mixing the use of machines or tools and storage together with non-halal materials can potentially lead to contamination. deliver, “…delivery facilities are carried out using company-owned expeditions so that they can maintain cleanliness, product safety so that they can maintain product halal ness and are not contaminated.” return, “…if there is a product return, the warehouse or clinic collects the returned defective product. then it is sent back to the factory to ask for a product change. the shipping process is also carried out using company-owned expeditions.” enabler. “…clinic management pay attention to all activities in the factory to maintain halal ness of the product.” in terms of implementation of delivery process several things need to be considered. during its preparation, processing, storage and transportation, it must be physically separated from other things that do not meet the requirements of sharia law; the process of packing and labeling must be carried out in a clean and hygienic manner; each holder must be clearly and indelibly marked or a label must be attached to the holder and the information on the product label must be consistent with supplier (production+ packaging+ labelling) storage (warehouse) distribution (agents/ resellers/ clinics) customers halal quality assurance for skincare products halal policy agbioforum, 23(2), 2021 | 30 usman, manzil and rozar. — assessing halal supply chain performance of skincare product through scor model at aesthetic clinic… the labeling requirements. delivering, returning or returning defective or inappropriate products from the warehouse or clinic to the factory must also be carried out in accordance with sharia law. it is important to pay attention to all activities in the factory in order to maintain product halal ness, because all production activities are carried out by external parties. table 1. halal supply chain implementation at the supplier side process halal standard related to cosmetic and personal care halal supply chain practice at aesthetic clinic support halal yes no supplier plan there are three things to consider when determining the material used, namely: a. does not contain parts of human organs; b. does not contain any parts or substances of animal origin which are prohibited by muslims according to sharia law, as well as any substances from halal animals that are not slaughtered according to sharia law; c. does not contain ingredients or genetically modified organisms (gmos) that are designated as najis according to sharia law. furthermore, for the manufacture of products, there are several things that must be considered, namely: a. not prepared, processed, produced or stored using any equipment contaminated with things that are unclean according to sharia law; b. during preparation, processing or manufacturing this product does not touch and is physically separated from any material that does not meet sharia law; c. devices, equipment, machines and processing aids used to process halal cosmetics and personal care must not be made of or contain any ingredients that are designated as najis by sharia law and will only be used for halal cosmetics; d. devices, equipment and machines that have been previously used or come into contact with najis must be washed and cleaned as required by sharia law; e. the packaging material must not be made from any raw material that is designated as unclean by sharia law; f. the packaging material does not contain any raw materials that are considered harmful to human health. choosing suppliers that is confirmed to be halal certified, to ensure that the raw materials used for their skincare products are halal. ✓ source maintain the condition and quality of the product in terms of storage, to ensure product quality and especially its halal ness. ✓ make machines, devices and equipment used by suppliers are in accordance with sharia law. however, there is one collaborative partner in producing skincare whose halal identification is still unknown. ✓ deliver the importance things that need to be considered in the delivery process are: a. during its preparation, processing, storage and transportation, it must be physically separated from other things that do not meet the requirements or other things that have been determined as unclean by sharia law; b. the process of packing and labeling must be carried out in a clean and hygienic manner; c. each container must be clearly and indelibly marked or a label must be attached to the container and the information on the product label must be consistent with the labeling requirements. delivery is carried out using company expeditions, so that cleanliness, product safety and halal ness can be guaranteed. ✓ return shipping back to the factory for product returns is under control because it uses company-owned expeditions. ✓ enable all activities in the factory to maintain halal ness of the product monitor by company ✓ 6. company the first three scor components, namely plan, resource and make, are all under the control of the company, so there is less chance of contamination. information obtained from interviews and observations regarding the components of scor in relation to the company's supply chain activities is as follows: plan, “… the office plan process plays a very important role in collecting sales data from year to year to find out customer demand and to balance needs with available agbioforum, 23(2), 2021 | 31 usman, manzil and rozar. — assessing halal supply chain performance of skincare product through scor model at aesthetic clinic… resources.” resource, “…the office also plays a role in the selection of raw materials, production sites to product packaging in accordance with halal standards. the clinic office also plays an important role in the source process. all activities such as scheduling, ordering to receiving goods are determined by the office. until the election activities and overall decisions are in the authority of the office. make, “…the company checks or controls the production process to the factory on a regular basis to maintain product quality and halal ness. this is because the production process is carried out by external parties or cosmetic tolling service companies. in this process the company also needs to think about service content that is attractive to customers.” deliver,”… are activities related to the manufacture, maintenance, and fulfillment of customer orders. the company's customers are divided into 3 namely agents, resellers and the last is individual or individual customers. delivery from the warehouse to clinics, agents and resellers is carried out by company-owned expeditions, so as to ensure that the maintenance and storage of products during delivery is safe, clean, and not contaminated. there is information that the company's products are counterfeited and sold at a much cheaper price by some irresponsible people. return, “…when there are defective products received by customers for agents and resellers can make direct contact with the office, after that the product can be sent to the warehouse and the warehouse will send back goods that are in good condition to agents and resellers. meanwhile, individual customers can return directly to the clinic or if the customer buys the product through an agent or reseller, they can also return it to them. enable “…in the sixth process related to company management. business activities at every clinic to agents and resellers are monitored by the office so that every activity cannot be carried out without the office's approval. “ agents are customers with large purchases for sale or remarketing. while resellers are almost the same as agents but the quantity of products purchased is less and there are also those who take products from agents. while on the other hand, individual customers are customers who buy products for personal use. for agents and resellers to place orders directly to the office and products will be sent directly from the warehouse. meanwhile, individual customers can place orders directly to the clinic or online through the company's official website or can also place orders to the nearest agent or reseller. this is the most difficult part of the process to maintain product halal ness because the company cannot control it until the end consumer. therefore, companies need to maintain relationships with customers and maintain product quality and halal ness. currently, the company provides very strict rules for agents and resellers who will market the company's products. the return process is the activity of returning goods from customers. if there are defective goods received by agents and resellers, they can make direct contact with the office, the product can be sent to the warehouse and the warehouse will send back goods that are in good condition to the agent and reseller. meanwhile, individual customers can return directly to the clinic or if the customer buys the product through an agent or reseller, they can also return it to them. the most common reason for returns is on account of packaging, such as images on packages that are not clear or blurry, product information is not legible, and so on. as for the content or quality of the product, the company rarely finds any customers making returns. this is because the company's management has tried to maintain product quality and conduct strict selection before the product is marketed or reaches the customer. there are two activities identified as not supporting to conforming to the standards of halal supply chain; firstly, in the “make” activity in supplier side, and secondly in the “delivery” process at company side. 1, the “make” activity at the supplier side. based on information provided by the clinic manager, supplier of products for the clinic also receive material from other parties, which do have confirmed status as halal or not. right now, the material taken from other parties is around 25%. figure-6 shows the fishbone diagram analysis in the process, there may be a potential for contamination with non-halal products during production, both from using the same equipment, and concurrent storage areas. the first factor is from the machine, in this process, skincare production is carried out by external parties who also receive production for other parties, so naturally the machines, tools, etc. owned by the factory are used in conjunction with other products. the second factor is people, or the negligence of the owner or the office that does not care about the production environment. it is unfortunate if these other products do not have a halal certificate or use ingredients that are not in accordance with halal standards, which can contaminate the halal skincare products. the third factor is the environment or environment. storage places such as containers, rooms or locations in the same or simultaneously with other nonhalal products can also diminish the halal ness of these products. for this reason, it is necessary to separate halal and non-halal products. and the last factor is material, halal skincare products can fade if they are contaminated with ingredients from other non-halal skincare products. table 2. halal supply chain implementation at the company side process halal standard related to cosmetic and personal care halal supply chain practice at aesthetic clinic support halal agbioforum, 23(2), 2021 | 32 usman, manzil and rozar. — assessing halal supply chain performance of skincare product through scor model at aesthetic clinic… yes no company plan there are three things to consider when determining the material used, namely: a. does not contain parts of human organs; b. does not contain any parts or substances of animal origin which are prohibited by muslims according to sharia law, as well as any substances from halal animals that are not slaughtered according to sharia law; c. does not contain ingredients or genetically modified organisms (gmos) that are designated as najis according to sharia law. furthermore, for the manufacture of products, there are several things that must be considered, namely: a. not prepared, processed, produced or stored using any equipment contaminated with things that are unclean according to sharia law; b. during preparation, processing or manufacturing, this product does not touch and is physically separated from any material that does not meet sharia law; c. devices, equipment, machines and processing aids used to process halal cosmetics and personal care must not be made of or contain any ingredients that are designated as najis by sharia law and will only be used for halal cosmetics; d. devices, equipment and machines that have been previously used or come into contact with najis must be washed and cleaned as required by sharia law; e. the packaging material must not be made from any raw material that is designated as unclean by sharia law; the packaging material does not contain any raw materials that are considered harmful to human health. sales data collected to determine customer demand and to balance needs with available resources. ✓ source selecting raw materials, production sites to product packaging in accordance with halal standards. ✓ make company checking or controlling the production process to the factory on a regular basis to maintain product quality and halalness. ✓ deliver the important factors that need to be considered in the delivery process are: a. during its preparation, processing, storage and transportation, it must be physically separated from other things that do not meet the requirements or other things that have been determined as unclean by sharia law; b. the process of packing and labeling must be carried out in a clean and hygienic manner; c. each container must be clearly and indelibly marked or a label must be attached to the container and the information on the product label must be consistent with the labeling requirements. product delivery is carried out using the owner's clinic expedition so that it can regulate and ensure the halal ness of the product during shipping from contamination. however, there are sales from agents and resellers directly to end consumers that have the potential for product counterfeiting. ✓ return agents and resellers make direct contact with the office and products can be sent back to the warehouse. ✓ enable business activities at each clinic to agents and resellers are monitored by the office. ✓ agbioforum, 23(2), 2021 | 33 usman, manzil and rozar. — assessing halal supply chain performance of skincare product through scor model at aesthetic clinic… figure 6. “make” process fishbone diagram 2. the “deliver” activity in the company side. in the delivery process at the company side may be declared inappropriate, based on various sources such as youtube where there are customer reviews from members of the public who say that skincare products are fake and many are sold freely in the market. manager of aesthetic clinic said, “…we have taken firm action against several people who cheated on the products and have reported them to the authorities." the aesthetic clinic’s youtube account also reviewed on one of the their product in a user review comment: "hi dear, make sure you buy aesthetic clinic products at an official agent who has a registered id card from the center, avoid buying below the official price because it has the potential to be a fake product. make sure to buy directly at the official store." from the statement, it is known that there has been counterfeiting of skin care products used by aesthetic clinics. figure 7.” delivery” process fishbone diagram the fishbone diagram in figure7 shows that the discrepancy in this process is the presence of counterfeit products on the market. this is certainly detrimental to the clinic, which is caused by several factors. the first factor is people, because of the lack of control before and during delivery, the office does not track product shipments in detail and does not follow procedures such as regular product checks. in addition, the office does not pay attention to the authenticity of the product, such as providing a sign or identification mark that can distinguish it from counterfeit products. the second factor is the environmental factor. there are so many parties who make clinical cloning products and sell them freely at a lower price. this can be done easily by simply changing the product content but using the exact same packaging as the clinic's packaging. in addition, clinic skincare products can also be obtained freely on the market. this is negligence on the part of the office due to lack of control over the distributor. the last factor is the material; clinic products are often found by customers with different textures, colors and so on. this can occur due to the wrong product placement or storage which is certainly related to temperature. in addition, it could also be due to the use of inconsistent raw materials. material factors can also be caused by damage to the seal or packaging received by the customer. potential acceptance of counterfeit products by customers environment many fake product many parties sell products illegally lack of company control over distributors lack of control before and during delivery not following the sop lack of attention to product authenticity people material the seal on the packaging is broken courier/shipper error the color of the product is change storage error potential contamina tion with non-halal products machine people material environment use of the same machines, and tools don't know the product is produced in the same factory potential contamination with ingredients of the nonhalal material same storage place with non-halal products agbioforum, 23(2), 2021 | 34 usman, manzil and rozar. — assessing halal supply chain performance of skincare product through scor model at aesthetic clinic… 7. conclusion based on the analysis of halal supply chain implementation at the supplier and company side using the scor version 11.0 model and referring to ms2200:1 (2008): islamic consumer goods – part 1: cosmetics and personal care – general guidelines and indonesian council of ulama no.26 (2013) regarding halal standards for cosmetic products, it is found that there are two supply chain activities that are not in accordance with halal standards. first, in the “make” component, it was found that the entire material production process was carried out by an external party. the results of the fishbone analysis show that, one of the supplier factories is still cooperating with or accepting the manufacture of other company's products whose halal status is still unknown, thus triggering potential contamination with non-halal products. second, at the "delivery" component carried out by the company, it was found that there are sales from agents and resellers directly to end consumers that have the potential for product counterfeiting. customers can buy products directly from the clinic or through agents or resellers. the obstacle faced by company is the existence of counterfeit skin care and cosmetic products that are sold freely in the market by irresponsible parties. as a result, consumers may buy counterfeit products, which can affect the image and halalness of the company's products. 8. research implication, limitation and future research the current study has a number of research implications. first, a company needs to provide the halal logo on the clinic's signage as well as all skincare products so that it can be more convincing or attractive for customers. second, it is important to further review and recheck with the factory to ensure that the clinic skincare products are not contaminated with non halal ingredients. third, it is necessary to follow up on irresponsible conduct by individuals and companies who sell illegal and counterfeit products in order to guarantee the quality and halal ness of products in the market. aesthetic clinic needs to resupport the make process on the supplier side and the delivery process on the company side because during the process the greatest risk of contamination occurs to the halal products and their supply chain. a key limitation of the present study is that it only focuses on the case of the halal supply chain in the supply chain network of skin care and beauty products. moreover, the analysis is only focused on the suitability of the supply chain's halal performance with halal standards. future research can be done by adding a halal risk analysis to the halal supply chain network, with more detailed references and guidelines for halal standards regarding halal cosmetics or skincare to 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li, 2021). technological advancement, particularly through the utilisation of blockchain open innovation (boi), has significantly contributed to the growth of countries and the progression of humanity. the topic of boi has garnered significant attention in contemporary times due to its adoption of environmentally friendly practices and the associated advantages of implementing green initiatives (frizzo-barker et al., 2020; li, 2021). the methods of conducting transactions are undergoing significant changes, with blockchain technology (bt) and open innovation (oi) emerging as key facilitators of these transformative processes (jiang & zheng, 2021; polas et al., 2022). the global acceptance of bt and oi can be attributed to their significant importance. currently, business enterprises are expanding their research studies by utilising a widely accepted method that is continuously improving through the use of digital tools. the current business landscape places significant emphasis on sole proprietors and small enterprises, with a notable trend of increased attention from businesses. simultaneously, customers and consumers are actively engaging in the process and assuming the role of cocreators. the necessity for blockchain-open innovation to undergo a reinvention process arises from its inherent limitations. this reinvention should be guided by a renewed sense of conviction and a re-evaluation of ideas that prioritise ethical principles (kibria & george, 2022). the ubiquitous nature of blockchain technology (bt) prompts an intriguing examination of the relationship and interaction between bt and the bank of india (boi). notably, the most captivating aspect of bt lies in its capacity to modernise the innovation process (jiang & zheng, 2021). by leveraging the assistance of bt, organisations can effectively implement business strategies and gain a competitive advantage in the market by enhancing their ability to rethink and adapt. green entrepreneurship (ge) serves as the primary driver of the green economy (gec). the adoption of green innovations (gni) in saudi arabia has exerted a significant influence on environmental concerns, thereby making a substantial contribution to the country's economic growth (eg) (dubey, gupta, mikalef, & akter, 2023; mansfeld & winckler, 2008; ren et al., 2023). therefore, eco-innovation plays a significant role in the development of ecological support systems and presents opportunities for addressing the depletion of natural resources (hou et al., 2021; ren et al., 2023). the gross national income (gni) has been widely regarded as a mailto:mbhatti@kfu.edu.sa mailto:asyah@psu.edu.sa agbioforum, 25(1), 2023 | 165 bhatti & juhari — effects of block chain adoption on green innovation: moderating the role of intention to use fundamental cornerstone for the advancement of industries, taking into account a multitude of factors. businesses are increasingly adopting gni methods in response to growing customer demand for eco-friendly products, the desire for a pollution-free environment, the well-being of the community, and government revenue management. the escalation of human desires and inclinations, coupled with the constraints imposed by limited resources, governmental policies, and community pressures, compel firms to strive for a harmonious equilibrium between corporate growth and sustainable long-term development (dong et al., 2022; polas et al., 2022). the concept of genetic engineering (ge) has been evolving in response to the imperative of achieving sustainable development (sd) (khan et al., 2021). in contrast, general electric (ge) is widely regarded as a mechanism for enhancing quality of life and fostering enduring economic well-being. general electric (ge) possesses the capacity to provide support in addressing various challenges, promoting the well-being of individuals, and optimising resource utilisation, as elucidated by the economic tetrahedron framework (hou et al., 2021; kouhizadeh & sarkis, 2018). several scholarly studies (bai, cordeiro, & sarkis, 2020; dong et al., 2022; gao, lin, & lu, 2022) have provided evidence suggesting that the transition towards a green economy is effectively achieving its intended societal and economic objectives. the phenomenon of "go green" has been embraced on a global scale. ge also plays a role in the transformation of the green economy (gec). according to malhotra (2004), general electric (ge) plays a significant role in fostering an environmentally sustainable and prosperous economy. this is achieved through the use of blockchain technology. therefore, the adoption of blockchain technology has garnered significant interest from various sectors, encompassing technology developers, financial institutions, startups, and energy firms, as well as academic and governmental institutions globally (dong et al., 2022; hou et al., 2021). this emerging technology has attracted widespread attention. many industrial managers across various industries believe that bt possesses the capacity to yield numerous innovations and benefits. blockchain technology (bt) is enabled by the decentralised nature of digital currencies (yu et al., 2022). in a distributed system, the implementation of protected data storage techniques enhances the safety and reliability of the data. the blockchain technology exhibits fundamental attributes such as immutability and decentralisation (schulz & feist, 2021; turoń, 2022). bt has the potential to enhance the efficacy of markets, economies, processes, and the utilisation of resources in order to attain environmentally sustainable outcomes. moreover, the utilisation of green energy sources has been found to contribute significantly to the mitigation of carbon dioxide emissions and the reduction of the greenhouse effect (gajdzik & wolniak, 2022a; gausdal, czachorowski, & solesvik, 2018). blockchain technology (bt) involves the creation of a secure and private network using a new framework introduced by saudi arabian industries. this framework incorporates the concept of graphic identification (gi) and aims to reduce the risks associated with the traditional server architecture. by eliminating the reliance on traditional centralised cloud servers, bluetooth (bt) technology enables the continuous analysis of physical activities through a secure and energyefficient infrastructure. consequently, the internet of things (iot) ecosystem exhibits a heightened emphasis on environmental sustainability, thereby fostering "green" innovation. the utilisation of blockchain technology is increasingly prevalent in the realm of green innovation (gajdzik & wolniak, 2022b; weinreich et al., 2020). furthermore, the adoption of sustainable and environmentally friendly practices within the green orientation can contribute to the preservation and conservation of natural resources (hernández-dionis, pérez-jorge, curbelo-gonzález, & alegre de la rosa, 2022). the existing body of literature suggests that the utilisation of the ge strategy remains limited and calls for increased emphasis on its implementation. the implementation and adoption of green practices (gp) within the context of public attitudes, particularly in the workplace, are essential for the promotion of sustainable development (sd) and the establishment of environmental stewardship (hawaldar et al., 2022). promoting green innovation in manufacturing companies is a challenging endeavour due to the specific characteristics associated with standardised discoveries (afshar jahanshahi & brem, 2020; jiang & zheng, 2021). in order to circumvent the limitations imposed by industry standards, manufacturing companies must broaden their search for new sources of knowledge beyond their traditional industrial skill set, encompassing both internal and external avenues. manufacturing companies, particularly those in the business sector, encounter limitations in generating the necessary information solely through internal research and development (r&d) efforts. according to the concept of open innovation (oi) utilising business ties (bt), as discussed by afshar jahanshahi and jia (2018) and hou et al. (2021), organisations engage in collaborative interactions with both competitors and external partners, leveraging their respective expertise, knowledge, and resources. organisations are increasingly embracing environmentally sustainable practices, wherein both internal and external information blocks are being made more receptive. in this context, firms are swiftly adopting green infrastructure (gi) methods (jahanshahi, khaksar, yaghoobi, & nawaser, 2011; khan et al., 2021) with the aid of blockchain technology. there is a necessity to develop a comprehensive policy that focuses on addressing fundamental concerns related to environmental challenges and enhancing sustainable practices through the use of blockchain technology. it is recommended that the government make efforts to eliminate the obstacles hindering the adoption of environmentally friendly living practices, as suggested by elsherif, alomari, and alkatheeri (2016). these barriers can be mitigated by cultivating a mindset of receptiveness towards innovation and actively engaging in collaborative agbioforum, 25(1), 2023 | 166 bhatti & juhari — effects of block chain adoption on green innovation: moderating the role of intention to use research endeavours with external researchers and participants (afshar jahanshahi & jia, 2018; schulz & feist, 2021). based on the preceding discourse, it has been suggested that blockchain technology plays a significant role in the economies of developed nations (han et al., 2023). however, it is noteworthy that its adoption in developing economies is still in its nascent phase (han et al., 2023). furthermore, previous studies have primarily concentrated on examining the direct impact of sustainable attitude (sua), sustainable orientation (suo), and social perception (sup) on green innovation (gni) (guo, zhang, & zhang, 2022). however, there has been limited attention given to investigating the indirect moderating effect, as existing research has primarily focused on the mediating effect of intention to use (polas et al., 2022). previous studies have also demonstrated inconsistent findings (polas et al., 2022; zhang, yang, & lv, 2022). according to baron and kenny (1986), it is posited that the presence of inconsistent results necessitates the inclusion of a moderating variable. therefore, the concept of intention to use may serve as a moderating variable in the relationship between exogenous and endogenous variables. additionlly, prior research has predominantly focused on countries other than saudi arabia, with limited investigations conducted on the manufacturing sector of saudi arabia. manufacturing companies in saudi arabia have significantly contributed to the social and economic aspects of the country (alazzawi, 2021). therefore, the purpose of this study is to examine the moderating influence of intention to use on the relationship between blockchain adoption and green innovation in the manufacturing sector of saudi arabia, building upon existing research gaps. the findings have the potential to inform researchers and policymakers about the implications of technology adoption for promoting green innovations. the study was divided into five sections. the first section provided an introduction, followed by a literature review in the second section. the third section outlined the research methodology, while the fourth section presented the data analysis and findings. lastly, the fifth section encompassed the discussion and future recommendations. review of literature green innovation the term "coopetition" is assumed when discussing the concepts of "open innovation (oi) and blockchain technology (bt)." indeed, the utilisation of classification algorithms, artificial intelligence methodologies, and data science techniques has proven to be advantageous for competitors in gaining a market edge through the consolidation of their data and information (gao, lin, & lu, 2022; kouhizadeh & sarkis, 2018; will & güroğlu, 2016). in order to enhance the efficacy of this collaboration, the implementation of a novel governance model centred around the notion of a shared information source has become necessary. the implementation of complete blockchain open innovation posed significant challenges and may not be applicable to all use cases. the achievement of this objective is contingent upon the network encountering intense competition (aboelmaged & hashem, 2019; bai, cordeiro, & sarkis, 2020). nevertheless, our belief was that the integration of bt, alongside other sophisticated open-source technologies, and the implementation of blockchain open innovation had the potential to generate the most groundbreaking value. the fundamental aspect underlying the interaction between individuals and organisations may revolve around the absence of trust in blockchain-based business services, which is rooted in the principles of integrity and confidentiality within the human-technology service alliance. individuals have the ability to access and review their transaction records on the bitcoin network, as it consistently retains a permanent transaction history at every node within the blockchain (dong et al., 2022; khan et al., 2021; nurgazina, pakdeetrakulwong, moser, & reiner, 2021; turoń, 2022). furthermore, individuals may opt for anonymity in order to protect their privacy and facilitate third-party verification of their identities (chuard et al., 2022; millers & gaile-sarkane, 2021), given that blockchain transactions are recorded through both private and public methods, such as the utilisation of extensive data sequences that are not readily accessible. sustainability orientation several strategies were implemented in order to attain sustainable performance by preserving a necessary way of life for the future and maintaining ecological balance (majid gilani & faccia, 2022; poberezhna, 2018). previous concepts aimed at achieving sustainability have been encompassed within the broader framework of sustainability, which has established a connection with the environment in order to safeguard future generations from deprivation (chang et al., 2018; fatoki, 2021). the utilisation of this methodology proved to be advantageous in the process of operationalizing sustainability, as it encompassed the consideration of various dimensions such as social, environmental, and economic aspects (polas & raju, 2021; will & güroğlu, 2016). individuals who demonstrate an interest in the environment tend to exhibit greater involvement in sustainable initiatives (cheng, 2020; nurgazina, pakdeetrakulwong, moser, & reiner, 2021; polas et al., 2022). according to research (aboelmaged & hashem, 2019; jiang, lyu, ye, & zhou, 2020; millers & gaile-sarkane, 2021), people who exhibit a propensity for incorporating sustainability considerations into their activity planning demonstrate a profound appreciation for the sustainability movement. the concept of sustainable orientation (so) encompasses the examination of both cultural and environmental factors (majid gilani & faccia, 2022). the concept of so was primarily conceived with the objective of establishing and fostering sustainable enterprises (cheng, 2020; nurgazina, pakdeetrakulwong, moser, & reiner, 2021; polas et al., 2022). numerous studies have demonstrated a significant and positive correlation between the adoption of green innovation and sustainable operations (majid gilani & faccia, 2022; purwanto et al., 2022). fatoki (2021) discovered that the adoption of gi enhances the advantageous impacts of so. entrepreneurs agbioforum, 25(1), 2023 | 167 bhatti & juhari — effects of block chain adoption on green innovation: moderating the role of intention to use operating businesses have also disclosed that governmental intervention (gi) yields favourable effects on social outcomes (so) (afshar jahanshahi, al‐gamrh, & gharleghi, 2020; de la vega hernández, urdaneta, & carayannis, 2023; jiang, lyu, ye, & zhou, 2020). sustainability attitude attitude can be conceptualised as an individual's subjective evaluation or appraisal of another person's conduct within specific contextual circumstances (huong et al., 2021; polas et al., 2022). individuals may exhibit a range of attitudes, encompassing both negative and positive perspectives, towards a particular situation or behaviour. these attitudes have the potential to influence the motivation to adopt green infrastructure (gi). furthermore, a number of studies have demonstrated that individuals' perception and attitude play a significant role in motivating their entrepreneurial aspirations, with emotional implications for their adoption of the gi (chang et al., 2018; sánchez-bravo et al., 2020; wang, 2020). according to recent studies conducted by adomako and amankwah-amoah (2021) and zhang, zhang, and zhou (2021), it was found that attitude plays a significant role in shaping individuals' intention towards sustainability (ling, tong, & ahmed, 2013; sánchez-bravo et al., 2020) and their commitment to pro-environmental behaviours. the self-mental attitude of individuals has been found to influence their preferences and engagement in specific behaviours. furthermore, the manner in which individuals approach and engage in cognitive processes holds significant significance in the acceptance and implementation of green entrepreneurship and green innovation (arici & uysal, 2022; kim & hall, 2021). numerous scholarly investigations have elucidated the impact of attitude on the adoption of green initiatives (gi) (polenzani, riganelli, & marchini, 2020; zailani et al., 2015). the studies conducted by huang, li, and lee (2021) and abu seman et al. (2019) have demonstrated that individuals' attitudes have a significant impact on their pro-environmental performance, leading to the emergence of green innovation. according to sung and park (2018), individuals' attitudes, whether positive or negative, can influence their motivation to engage in sustainable behaviours that contribute to the advancement of the green economy. in their study, tjahjadi et al. (2020) observed a correlation between individuals' opinions and their consumer environmental behaviour. social perception social perception has influenced both group and individual activities as external factors. societal pressures have an impact on people's behavior, particularly in relation to gender identity (abdullah, zailani, iranmanesh, & jayaraman, 2016). there is an increasing level of concern among individuals regarding the perception of their social image by the general public. the analysis conducted in this study focused on the personal conduct of entrepreneurs, specifically examining their social perception and intention to implement green innovation (gi). the findings of this analysis revealed a positive association between these factors and the achievement of green economic stability (flores & jansson, 2021; tölkes, 2020). social perception refers to the influence it has on individuals' inclination to accept or reject certain behaviours. this influence has prompted business professionals to embrace green innovation (gi) through the implementation of green entrepreneurship (ge) activities (arici & uysal, 2022; huong et al., 2021; jiang, lyu, ye, & zhou, 2020). social perception (sp) encompasses individuals' perceptions of the societal expectations and pressures that influence their behaviour, leading them to either conform to or deviate from these expectations (arici & uysal, 2022; chang et al., 2018). according to a growing body of research, people's selfperception in society has an impact on their motivation to engage in green entrepreneurship and innovation. consequently, this heightened their inclination to engage in such behaviour and prompted them to embrace environmentally-friendly innovations that incorporate green energy technologies. the influence of public opinion plays a significant role in shaping individuals' decisions to engage in criminal activities (arici & uysal, 2022; tölkes, 2020). rural individuals exhibited a greater propensity to embrace technological advancements, thereby facilitating an improved and contemporary way of life (aydın & alvarez, 2020; tih & zainol, 2012). in the contemporary global context, individuals residing in diverse geographical regions are afforded equitable opportunities for personal development and advancement. individuals experience heightened levels of optimism as they progress and develop within societal and business contexts (pan, liu, bai, & ma, 2021; tih & zainol, 2012). the perception of individuals residing in rural areas is characterised by gratitude and optimism, which subsequently influence their inclination to embrace green practices and engage in green entrepreneurship (polas et al., 2022). this section examines the empirical correlation between blockchain technology, intention to use, and green innovation. blockchain technology, intention to use, green innovation bt and gi are considered to be significant components of blockchain technology due to their positive environmental impact compared to fossil fuels. these green, renewable energy sources have emerged as crucial elements in the context of blockchain technology. geothermal heat, wind, rain, and sunlight are examples of renewable energy sources that have the potential to be harnessed for electricity generation (flores & jansson, 2021; guo, wang, & chen, 2020; guo, wang, & yang, 2020). these resources are used for the production of environmentally friendly and sustainable energy. in contemporary times, the advancement of renewable energy equipment has facilitated entrepreneurs in generating environmentally friendly energy through the utilisation of these technologies, thereby reducing their reliance on costly electricity (huong et al., 2021). the objective of implementing green practices is to harness and utilise the plentiful and cost-free energy resources bestowed by the natural environment. the smart grid is a contemporary electricity generation system that enables digital agbioforum, 25(1), 2023 | 168 bhatti & juhari — effects of block chain adoption on green innovation: moderating the role of intention to use communication through the utilisation of information technology (qiu, hu, & wang, 2020; thukral, 2021). smart grids have the potential to address the various obstacles associated with security, connectivity, and data transmission. renewable energy sources exhibit volatility and unpredictability, necessitating the integration of advanced technologies into the current network (el-kassar & singh, 2019; feng et al., 2020). to promote the utilisation of sustainable resources and foster environmental improvement, a smart-grid system based on blockchain technology is implemented. the recently introduced forking attack is applied in an inverse manner to the blockchain within the suggested paradigm. in the context of the energy grid concept, stakeholders have been engaged through a combination of centralised power and decentralised peers. the implementation of this technological advancement holds promise for augmenting ethical smart grid systems and fostering environmental sustainability (alsharari, 2021; alshurideh, kurdi, shaltoni, & ghuff, 2019). the blockchain system is presumed to possess the capability to effectively forecast and present information pertaining to energy-related impacts (adolphs, nummenmaa, todorov, & haxby, 2016; ahmad, madi, abuhashesh, & nusairat, 2020). the enhancement of the energy supply network has the potential to promote environmentally friendly practices, resulting in the development of advanced market models for green infrastructure (li et al., 2019; singh, jain, munjal, & rakesh, 2019). the utilisation of smart contracts and blockchain technology holds the potential to provide transparent and secure platforms that facilitate the development of innovative and environmentally sustainable business solutions (anggadwita & dhewanto, 2016; ye, hofacker, peloza, & allen, 2020). in a separate study, polas et al. (2022) discovered that sustainable orientation and a sustainable attitude exert a positive and statistically significant impact on green innovation. however, the researchers found that social perception has an insignificant effect on green innovation, as indicated by the same study. the present study provides additional evidence that a sustainable orientation can have an impact on green innovation (guo, wang, & chen, 2020; polas et al., 2022). moreover, previous research has also demonstrated that social perception and a sustainable attitude have a positive and significant influence on green innovation (guo, wang, & chen, 2020; yu, park, lee, & han, 2021). thus, based on previous discussion, following hypothesis is formulated below. h1: sustainable orientation has positive and significant effect on green innovation. h2: sustainable attitude has positive and significant effect on green innovation. h3: social perception has positive and significant effect on green innovation. h4: intention to use has significant moderating role between sustainable orientations and green innovation. h5: intention to use has significant moderating role between sustainable attitude and green innovation. h6: intention to use has significant moderating role between social perception and green innovation. research framework based on the preceding discourse, it has been suggested that blockchain technology plays a significant role in the economies of developed nations (han et al., 2023). however, it is noteworthy that its adoption in developing economies is still in its nascent phase (han et al., 2023). furthermore, previous studies have primarily concentrated on the direct impact of sustainable attitude (sua), sustainable orientation (suo), and social perception (sup) on green innovation (gni) (guo, zhang, & zhang, 2022). however, there has been limited attention given to the indirect moderating effect, as research has mainly been conducted on the mediating effect of intention to use (polas et al., 2022). previous studies have also demonstrated inconsistent findings (polas et al., 2022; zhang, yang, & lv, 2022). according to baron and kenny (1986), the presence of inconsistent results necessitates the inclusion of a moderating variable. hence, the concept of intention to use has the potential to serve as a moderating variable in the relationship between exogenous and endogenous variables. furthermore, prior research has predominantly focused on countries other than saudi arabia, with limited investigations conducted on the manufacturing sector of the latter. manufacturing companies in saudi arabia have significantly contributed to the social and economic landscape of the country (alazzawi, 2021). the purpose of this study is to examine the moderating role of intention to use in the relationship between blockchain adoption and green innovation within the manufacturing sector of saudi arabia, building upon existing research gaps. the variables under investigation are depicted in figure 1 below. figure 1: research framework agbioforum, 25(1), 2023 | 169 bhatti & juhari — effects of block chain adoption on green innovation: moderating the role of intention to use research design and research instrument the primary objective of this study is to examine the impact of environmental management blockchains on green innovation, taking into consideration the moderating effect of intention to use. in the present study, a positive approach was employed to gain an understanding of empirical knowledge derived from a hypothesis (krmela, šimberová, & babiča, 2022). the quantitative investigation encompassed various factors (kaur et al., 2022). saudi arabia has implemented significant economic reforms in recent years, making it a compelling case for analysis. to promote the adoption of sustainable and environmentally friendly practices, saudi arabia has implemented a series of regulations pertaining to sustainability and engaged in training initiatives. the present investigation focuses on the manufacturing sector of saudi arabia. manufacturing firms have been responsible for approximately one-third of global carbon dioxide emissions and energy consumption (huang & li, 2017). saudi arabia is considered to be the most environmentally sustainable city among the leading cities worldwide in terms of green initiatives (tang et al., 2018). in the past decade, there has been a significant increase in the recognition and interest surrounding the concept of the "green worldview" (singh, giudice, chierici, & graziano, 2020). given the significance of this subject matter, it is imperative to undertake this investigation. in order to assess the level of green innovation (gni), we utilised a set of four items as proposed by chang, chen, and lu (2019). the measurement of the sustainability attitude (sua) was conducted using four items that were derived from the research conducted by chen and hung (2016). four items were used to measure social perception (sup), which were adopted from the study conducted by kervyn, fiske, and yzerbyt (2015). finally, the construct of "intention to use" (inu) was assessed using a set of four items that were adopted from the research conducted by chang and cheung (2001). the survey questionnaire employed a likert scale consisting of five points, where a rating of 1 indicated strong disagreement and a rating of 5 indicated strong agreement. data collection procedures data collection was conducted by distributing selfadministered questionnaires among manufacturing entrepreneurs. a total of 500 research questionnaires were distributed, out of which 250 were received. the data collection process employed a convenient sampling technique, which was suggested by research assistants who possessed local expertise in the field of research. in order to enhance comprehension among respondents, our questionnaires incorporate two languages, namely english and saudi arabian. the absence of common method bias was confirmed by the finding that harmon's one factor value was below 50%, indicating the absence of such bias. according to cocco, pinna, and marchesi (2017), the presence of multicollinearity is suggested when the values of the variance inflation factor (vif) are less than 1 or greater than 10. the variance inflation factors (vif) in our study were found to be below 5, indicating the absence of multicollinearity concerns. data analysis and findings in order to validate the precision of our analysis, we conducted "partial least squares (pls)-structural equation modelling (sem)" on our research model. smart pls is employed in order to assess the validity, reliability, and feasibility of data analysis. cocco, pinna, and marchesi (2017) suggest that it may be possible to determine the necessary sample size by utilising the partial least squares structural equation modelling (pls-sem) approach. it has been demonstrated that partial least squares structural equation modelling (pls-sem) is a highly valuable tool for effectively managing both structural models and measurements. furthermore, it has been found to be effective in evaluating intricate route models (pournader, shi, seuring, & koh, 2020). pls-sem has the potential to effectively handle small sample sizes and yield highly accurate outcomes. partial least squares structural equation modelling (pls-sem) was identified as a suitable tool for our research inquiry. the evaluation of the measurement and structural model involved the utilisation of statistical measures, including tests for convergent validity and discriminant validity. assessment of inner model the results of the measurement model have been presented below. the magnitude of the outer loading (esmaeilian, sarkis, lewis, & behdad, 2020) may exceed 0.5. according to the findings presented in table 1, the outer loading results exceed the threshold of 0.5. when the composite reliability results exceed a threshold of 0.7, it is recommended to evaluate the internal consistency of the reliability. the findings indicate that the reliability of the study is 0.7 or higher. andoni et al. (2019) suggests that a cronbach's alpha coefficient greater than 0.7 is advisable. the results presented in table 1 indicate that the cronbach alpha value exceeds 0.7. as a result, it can be observed that all values of the construct satisfy the criteria set forth by cronbach's alpha. the concept of "average variance extracted" (ave) is utilised in order to evaluate the degree of convergent validity. in order to uphold convergent validity, it is necessary for the loading factors of both items to exceed 0.5. the ave value exceeded 0.5. all the aforementioned outcomes are anticipated and presented in table 1 and figure 2, as depicted below. table 1. reliabiltiy and validity alpha cr ave gni 0.905 0.934 0.779 inu 0.876 0.905 0.705 sua 0.806 0.844 0.575 suo 0.89 0.924 0.753 sup 0.771 0.82 0.605 source: authors estimations agbioforum, 25(1), 2023 | 170 bhatti & juhari — effects of block chain adoption on green innovation: moderating the role of intention to use figure 2: measurement model furthermore, table 2 presents a comparison between latent variables and their respective square roots. the fornelllarcker method was utilised to evaluate the validity of the proposed model (miglani, kumar, chamola, & zeadally, 2020). the square root of the figures for the whole variables, as well as the average of the square values, are found to be greater than the other diagonal values. this observation suggests that the construct demonstrates discriminant validity in relation to fornell larcker. the present study provides empirical evidence supporting the discriminant validity of the research model. furthermore, table 2 below displays the descriptive statistics. nevertheless, the heterotrait-monotrait (htmt) values were found to be below 0.85, as indicated in previous scholarly works. this implies that the htmt readings should consistently be below 0.85 in order to establish discriminant validity. hence, the findings indicate that the construct exhibits discriminant validity, as depicted in table 3, presented below. table 2. desriptives and fornell and larcker mean sd gni inu sua suo sup gni 3.134 0.982 0.883 inu 3.451 0.897 0.361 0.84 sua 3.562 0.882 0.736 0.428 0.759 suo 3.652 0.872 0.354 0.38 0.73 0.868 sup 3.451 0.762 0.342 0.809 0.563 0.658 0.778 source: authors estimations table 3. htmt gni inu sua suo sup gni inu 0.331 sua 0.667 0.435 suo 0.393 0.401 0.089 sup 0.426 0.071 0.78 0.809 source: authors estimations coefficient of determination (r square) the r-squared values for the coefficient of determination were calculated using the smart pls software. the collective influence of exogenous variables on the endogenous variable yielded a coefficient of 0.45, suggesting a 45 percent alteration in the dependent variable. in contrast, khatoon et al. (2019) proposed the utilisation of three alternative r2 values, namely cuo at 20 percent, sup at 25 percent, and suo at 30 percent, in order to assess the three distinct impacts. based on the findings, it can be observed that the independent variables exert a significant impact on the dependent variable, iu. following the process of moderation, the obtained r square value of 55 percent suggests a significant influence of inu on the adoption or rejection of the green innovation strategy (pournader, shi, seuring, & koh, 2020). the r square values of the inu moderating effect exceed 50 percent, indicating that the study's objectives have been successfully accomplished. additionally, the lower value of the standardised root mean square residual (srmr) suggests that this particular model is appropriate for the given dataset (moosavi, naeni, fathollahi-fard, & fiore, 2021). according to zhang and wen (2017), the model has a higher predictive value than zero. the assessment of the predictive capability of the widely used pls path model is conducted through the utilisation of cross-validated communality approaches. the predictive validity of the model is evident in table 4. the intention to use it has a moderate impact on the adoption of green innovations. in general, the model demonstrates a high level of fitness and exhibits a notable ability to generate accurate predictions. table 4. q square sso sse q² (=1-sse/sso) gni 1352 705.986 0.478 inu 1352 1352 sua 1352 1352 suo 1352 1352 sup 1014 1014 source: authors estimations direct analysis table 4 displays the direct results of the hypotheses. bootstrapping was employed to calculate the t values. when conducting social science research, it is common practice to consider a 95% confidence level, as indicated by the p-value provided by smart pls (durst & gerstlberger, 2020). the initial hypothesis received empirical support as the data revealed a significant and positive correlation between the adoption of sustainability strategies and the utilisation of environmentally friendly innovations. the findings of our study are consistent with agbioforum, 25(1), 2023 | 171 bhatti & juhari — effects of block chain adoption on green innovation: moderating the role of intention to use the research conducted by durst, svensson, and palacios acuache (2021), as well as gharleghi and jahanshahi (2020). the adoption of green innovation is supported by a positive influence on sustainability attitudes, as hypothesised. the findings of our study are consistent with the results reported by lumpkin and dess (2001) as well as dinc and hadzic (2018). the results of the study revealed that there is no significant correlation between social perception and the adoption of green innovation. this finding contradicts the initial hypothesis that was proposed. these results are consistent with previous findings that have also demonstrated similar outcomes (polas et al., 2022). the anticipated outcomes are presented in table 5 below. table 5. direct effect results original sample sample mean standard deviation t statistics p values sua -> gni 0.988 0.985 0.049 20.119 0.000 suo -> gni 0.356 0.348 0.059 6.024 0.000 sup -> gni 0.113 0.114 0.071 1.586 0.113 source: authors estimations figure 3: structural model moderating analysis this study used a two-step method to look at how intention to use affects the relationship between sup, suo, and sua and green innovation (gri), with a focus on the early intention to use. the results of this study indicate that the transformations sup*inu → gri and suo*inu → gni have a statistically significant indirect relationship. the researchers conducted an analysis of the impacts of inu, sup, and suo on gni in order to observe the moderating effect of inu. the findings suggest that there is no significant relationship between sustainable attitude and gross national income (gni) when considering the moderating effect of individual need for uniqueness (inu). however, the moderating effects of self-unique orientation (suo) and social unique orientation (sup) on inu are positively and significantly related. this indicates that inu plays a significant role as a moderating variable for the relationship between suo and sup, as shown in table 6 below. hence, the outcomes obtained in our study align with the research discoveries of pollack et al. (2016) as well as li (2020). the anticipated outcomes of the moderating effect are presented in table 6 below. table 6. moderating effect results original sample sample mean standard deviation t statistics p values inu*sua -> gni 0.089 0.088 0.071 1.258 0.209 inu*suo -> gni 0.110 0.113 0.046 2.398 0.017 inu*sup -> gni 0.123 0.121 0.057 2.174 0.03 source: authors estimations discussion and conclusion the utilisation of blockchain technology has demonstrated its considerable importance in facilitating the effective management of financial markets, smart cities, egovernance, and energy systems, thereby fostering green innovation and the development of a sustainable ecosystem (cao & chen, 2019). blockchain technology facilitates transparent, unadulterated, unaltered, and secure transactions. the rapid integration of blockchain technology with the internet of things (iot) is currently taking place. research on the internet of things (iot) and its development has proven beneficial in addressing the challenges and obstacles encountered in the implementation of blockchain technology. in recent years, there has been a growing interest in blockchain technology (comrey & lee, 2013). this study was conducted to examine the significance of blockchain technology in enhancing eco-friendly internet of things (iot) systems, as well as explore the various factors that impact blockchain technology. the aim of this study appears to be to examine the timely and suitable evaluation of agbioforum, 25(1), 2023 | 172 bhatti & juhari — effects of block chain adoption on green innovation: moderating the role of intention to use blockchain technology within the environmentally sustainable and eco-friendly sector of the internet of things (iot). the green economy experiences enhancement through the adoption of sustainable and environmentally-friendly internet of things (iot) practices. the findings of this study indicate that societal perspective, sustainable mindset, and sustainability orientation significantly impact the development of green initiatives and mindsets. green innovations have the potential to facilitate the advancement of educational and mindfulness programme frameworks that prioritise the integration of sustainable practices and green innovation. these practices are beneficial for the establishment of environmentally sustainable companies. the implementation of green practices facilitates the establishment of environmentally friendly enterprises, thereby enabling saudi arabia to successfully transition towards a green economy. to ascertain the alignment between economic benefits and the green agenda, the green economy places significant emphasis on fostering green innovation and cultivating a green mindset among manufacturing entrepreneurs. the findings of this study are consistent with prior research conducted by polas et al. (2022), which also demonstrated a positive and significant relationship between green attitude, sustainable orientation, and green innovations. the impact of social perception on green innovation was found to be statistically insignificant, suggesting that social perception does not play a significant role in driving green innovation (polas et al., 2022). these findings are consistent with prior research (liu, guo, zhang, & mao, 2023). the moderating effect of intention to use was found to have a positive and significant impact on the relationship between social perception, sustainable orientation, and green innovation. however, it was found to have an insignificant effect on the relationship between green attitude and green innovation. this suggests that the construct of intention to use is not a significant moderating variable between green attitude and green innovation. based on the aforementioned findings, it can be inferred that sustainable attitude, sustainable attitude, and social perception are significant variables that can assist organisations in enhancing their green innovations, thereby bolstering their competitiveness on an international scale. implications of the study the study made a valuable contribution to the existing body of literature, encompassing both theoretical and practical aspects. previous research has primarily concentrated on nations other than saudi arabia, with limited emphasis on developing countries. hence, this research has made a valuable contribution to the existing body of literature from the perspective of saudi arabia. furthermore, previous research has predominantly examined the direct impact of social perception, sustainable attitude, and sustainable orientation on green innovation. however, there has been limited investigation into the indirect influence of the moderating effect of intention to use. consequently, this study makes a valuable contribution to the existing literature by exploring the moderating effect, as previous studies have primarily focused on either direct effects or mediating effects (polas et al., 2022). current research plays a pivotal role in fostering the growth of the green economy by offering cutting-edge information and scholarly assessments. the initial investigation of blockchain technology focused on the analysis of system architectures, performance challenges, and distributed consensus mechanisms. in this study, the researcher examined the potential benefits of utilising blockchains in relation to various energy consumption scenarios. this study conducted an analysis of various blockchain activities (armstrong & overton, 1977), with the aim of shedding light on specific domains in which entrepreneurs and stakeholders actively seek environmentally friendly innovations. we have examined several projects that are currently in the early stages of development and have focused on studying the critical aspects of decentralisation, security, and scalability that are still being implemented. the widespread adoption of blockchain technology in the energy sector is hindered by various obstacles, such as regulatory, competitive, and legal barriers. these impediments pose a significant risk to energy firms. the findings of this study will provide insights into the potential of this technology and its commercial viability, as well as its acceptance within the broader community. furthermore, the results of the study generate enthusiasm and drive for the expansion of environmentally conscious entrepreneurial ventures, particularly those operating on a smaller scale, such as small and medium-sized enterprises. the purpose of this study is to provide education and inspiration to aspiring entrepreneurs in order to promote the adoption of environmentally friendly practices. this will be achieved by fostering entrepreneurial innovations and cultivating a mindset conducive to establishing businesses that prioritise sustainability. the ultimate goal is to encourage a sustainable attitude and social perception, as well as a sustainable orientation towards business endeavours. these sustainable practices offer a viable approach to increasing profitability and enhancing the firm's value while also promoting a sustainable and improved standard of living (hair jr, sarstedt, hopkins, & kuppelwieser, 2014; roldán & sánchez-franco, 2012). this study contributes to the existing literature on the utilisation of national habitat improvement strategies to enhance eco-economic outcomes (hair jr, hult, ringle, & sarstedt, 2021; peng & lai, 2012). the results of this study could also be valuable for the adoption of sustainable strategies in companies and the evaluation of eco-friendly business practises that aim to enhance the value of communications while avoiding actions that harm the environment. sustainable business possesses a distinct capability to guide the operational approach of a business. the generation of profit and the pursuit of sustainability through value creation are interconnected, thereby exerting influence on both society and the environment. furthermore, it is recommended that the achievement of environmentally sustainable innovation performance be agbioforum, 25(1), 2023 | 173 bhatti & juhari — effects of block chain adoption on green innovation: moderating the role of intention to use facilitated by combining technological absorptive capability with the principles of open innovation and technological orientation within the context of industry 4.0. enterprises should prioritise the enhancement of initiatives for collaborative innovation that have a lasting impact on green innovation. not only does it confer advantages to environmental and ecological innovations, but it also proves advantageous in terms of governmental subsidies and tax benefits for green practices. governmental subsidies have the potential to mitigate business expenditures and enhance the overall value generated by the firm. in conclusion, the establishment of partnerships centred around open innovation serves as a means to foster and promote green innovation. this type of innovation, which is typically not readily achieved within the regular operations of a business, often necessitates the provision of incentives (becker, rai, ringle, & völckner, 2013; bickel et al., 2012). limitations and future recommendation the present study is subject to certain limitations. this study focused on entrepreneurs in saudi arabia, a developing nation. future research could be conducted on entrepreneurs in other developed economies to explore potential variations in the findings. the study employed a quantitative research methodology to collect data on numerical variables. however, it is worth noting that there are several alternative qualitative research approaches. consequently, future investigations could explore qualitative or mixed methods to gain insights into potential variations in the findings. in order to conduct a study analysis, we gathered cross-sectional data. data collection was limited to a single locality due to the challenges encountered in directly approaching manufacturing entrepreneurs. additionally, a small sample size was used for analysis. it is recommended that future researchers engage in research at both national and international levels, encompassing various financial and non-financial sectors while taking into account the concept of green innovation and its associated components. furthermore, it is worth noting that these additional economic sectors offer intriguing prospects for future research, particularly in the realm of social enterprises operating within the context of the green economy. the application of sustainability transformations can aid in understanding the role that firms play in the global environmental crisis (gec). the limitless potential of blockchain technology (bt) and its ability to effectively address challenges would significantly transform the landscape of efforts aimed at establishing a sustainable ecosystem for global natural intelligence (gni). the ongoing investigation aims to develop a novel framework that can serve as a basis for future research endeavours, fostering scholarly engagement in conducting comprehensive analyses and providing enhanced understanding of emerging phenomena within the realm of blockchain technology, environmentally sustainable practices, and green innovations. furthermore, the study examined the mediating effect of three exogenous variables and one endogenous variable. however, it is suggested that future research should explore the possibility of incorporating additional exogenous variables to enhance the predictive relevance and coefficient of determination. based on the findings, it is advisable for policymakers and practitioners to incorporate and employ the strategies of open innovation. the approach utilised in innovation management that has demonstrated the highest level of acceptability involves the enhancement of green innovations. furthermore, the focus of our study lies in the manufacturing sector, with a particular emphasis on the limited availability of resources and the inclination towards lower-risk strategies. consequently, there is a heightened necessity to implement open innovation practices within small-scale enterprises. irrespective of their respective roles, impacts, and applications in specific industries, we conducted an analysis of the provided components within the manufacturing sector in saudi arabia. hence, it is recommended that forthcoming studies investigate additional industries, particularly those pertaining to the achievement of green innovation. acknowledgment this work was supported by the deanship of scientific research, vice presidency for graduate studies and scientific research, king faisal university, saudi arabia [grant 4227]'. references abdullah, m., zailani, s., iranmanesh, m., & jayaraman, k. 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zandalinas, fritschi, & mittler, 2021). hence, the implementation of technological advancements is imperative for the effective operation of environmental management systems, encompassing various aspects such as pollution prevention, ''recycling and plastic reuse, energy efficiency, and carbon emissions management'' (shi, huang, han, & xu, 2021). several authors have put forth arguments suggesting that the adoption of technological environmental innovation (envinn) plays a significant role in improving an organisation's environmental sustainability, particularly in relation to reducing co2 emissions (shi, huang, han, & xu, 2021). in recent decades, numerous scholars have concurred that technological innovation is indispensable for achieving economic growth (swainson & mahanty, 2018). there has been a growing recognition of the importance of green technology improvement, also known as eco-innovation, in achieving sustainability goals, enhancing energy efficiency, reducing the impacts of resource consumption, and mitigating pollution and other hazards (abdulqadir, 2022). in order to attain enhanced environmental and economic outcomes, numerous companies employ envinn as a prevalent environmental strategy (khan, dhir, parida, & papa, 2021). this entails the process of cultivating, implementing, and utilising innovative resource utilisation products, procedures, services, organisational plans, and industry strategies that mitigate environmental risks and damage (iqbal et al., 2021). recent research has emphasised the importance of technological advancements, specifically envinn, in the pursuit of sustainability goals (liu, yang, shen, & štreimikienė, 2022; sinha, sengupta, & alvarado, 2020). the utilisation of green energy and the reduction of fossil fuel consumption by technological envinn may have a positive impact on the environment (hernandez, jordaan, kaldunski, & kumar, 2020). in addition, it is plausible that these technologies could potentially aid nations in enhancing the efficiency of their manufacturing processes. goyal et al. (2022) conducted a study that highlights the significance of ethical corporate behaviour and explores how technological advancements within organisations can lead to the development of environmentally friendly technologies, thereby helping to alleviate the adverse impacts of industrialization. indeed, technology plays a substantial role in the global endeavour to achieve net zero emissions (dwivedi et al., 2022). there has been a noticeable increase in the level of interest regarding environmentally sustainable production methods and the availability of eco-friendly goods and services (hole & hole, 2019). nevertheless, the mailto:fmuthuswamy@kfu.edu.sa mailto:amit.s@sct.edu.om agbioforum, 25(1), 2023 | 204 muthuswamy & sharma — moderating effects of environmental governance on environmental innovations and carbon dioxide emissions connection between investments in research and development (r&d) by businesses and advancements in environmental protection is inherently intertwined. it is crucial to acknowledge that the impacts of eco-innovation may not manifest immediately (li, zhang, ali, & khan, 2020). developing environmentally-friendly products that are both commercially viable and ecologically sustainable poses a substantial obstacle for corporations (ashfaq et al., 2023). other empirical evidence pertaining to business performance is necessary to initiate the process of formulating "win-win" strategies aimed at reducing carbon emissions through innovation. the ongoing and inconclusive nature of the discourse surrounding the potential relationship between eco-innovation and financial performance indicates that the deliberation will persist. in the context of economic development, the innovation-driven mode can be of significant importance in altering emerging drivers and patterns to enhance performance optimisation (jiang, lyu, ye, & zhou, 2020). achieving a world with no net carbon emissions would necessitate significant effort, considering the past relationship between envinn and co2e. however, it is currently premature to ascertain the specific areas within the various innovation revolutions where possibilities may arise, as well as how to effectively leverage innovation to reduce carbon emissions. in order to enhance the environmental performance of guide and advice company executives, additional research is necessary to investigate the impact of envinn on co2e. prior research has also posited that in cases where organisations are unable to allocate sufficient resources towards investment in envinn, the literature suggests that the role of environmental governance in enhancing environmental sustainability may be diminished (heikkila, villamayortomas, & garrick, 2018). hence, the primary objective of environmental governance is to regulate the actions of both individuals and groups, with the aim of advancing shared environmental objectives and societal aspirations (heikkila et al., 2018). environmental governance can be implemented through diverse mechanisms, including formal co-management agreements and informal networks comprising individuals and groups, as well as through hierarchical, participatory, and collaborative decisionmaking processes involving governmental bodies, private citizens, and other relevant stakeholders (partelow et al., 2020). there has been a growing interest in investigating the impact of various governance characteristics and components on social and ecological outcomes, with the aim of deriving conclusions that can be applied universally (bennett & satterfield, 2018). previous research has demonstrated a direct relationship between envinn and co2e (hashmi & alam, 2019; shi, huang, han, & xu, 2021). however, there has been limited focus on the indirect moderating effect of environmental governance on co2e. moreover, prior research has predominantly focused on countries other than saudi arabia, with limited attention given to companies within the saudi arabian context. hence, additional research is required to elucidate the causal connections between environmental innovation (envinn), co2 emissions, and the potential moderating influence of environmental governance, particularly within the context of saudi arabia. hence, this study contributes to the existing body of literature in multiple ways. this study diverges from previous research (afrifa, tingbani, yamoah, & appiah, 2020; hashmi & alam, 2019) by focusing on environmental technologies. these technologies showcase a company's inclination to diminish its environmental footprint and related expenses while also fostering prospects for novel business ventures. furthermore, this study makes a valuable contribution to the ongoing discourse surrounding the underlying factors behind carbon dioxide (co2) emissions by shedding light on the significant role that envinn plays in this phenomenon. according to the available information, this study is unique in the united kingdom as it investigates the impact of environmental governance on the relationship between envinn and co2e. our organisation offers a valuable research opportunity to investigate the potential of envinn for reducing co2 emissions. additionally, we highlight the significant role of environmental governance in this context. the reduction of carbon dioxide emissions (co2e) holds significant implications for businesses and policymakers, as indicated by our research. it is imperative for them to embrace environmentally sustainable technologies and enhance their environmental governance practices. the study was divided into five distinct sections, namely: introduction, literature review, methodology, data analysis, findings, discussions, and recommendations. literature review theoretical background the stakeholder theory argues that the interests of shareholders should not be prioritised over the interests of other stakeholders. one of the primary objectives for managers within a shareholder approach is to establish shared goals among multiple shareholders rather than focusing on trade-offs (hashmi & alam, 2019). by addressing both social and environmental challenges, technological innovation has the potential to offer benefits that align with the values of the firm, its shareholders, and the wider society (albitar, borgi, khan, & zahra, 2023). nevertheless, certain elements of stakeholder theory highlight the necessity of choosing and potentially giving precedence to specific stakeholders, thereby casting doubt on the attainability of mutual advantages for all noteworthy stakeholders (hiebl & pielsticker, 2023; tiggeman, 2020). such businesses that emit excessive amounts of greenhouse gases are prone to receiving criticism from stakeholders (chithambo et al., 2020). for example, it is plausible that customers and business partners may exhibit reluctance to purchase carbon-intensive products, thereby resulting in a decline in sales and earnings for the manufacturing companies involved. it is plausible for stakeholders to hold the belief that companies that contribute to environmental degradation will ultimately encounter substantial market consequences (vera-muñoz, gaynor, & kinney, 2020). furthermore, numerous governments worldwide, including the united kingdom, are currently undertaking efforts to agbioforum, 25(1), 2023 | 205 muthuswamy & sharma — moderating effects of environmental governance on environmental innovations and carbon dioxide emissions mitigate the excessive release of carbon emissions and incentivize corporate engagement through the implementation of more stringent carbon regulations and protocols (karim, albitar, & elmarzouky, 2021; mahajan, tingley, & wagner, 2019). this could potentially impede regular business operations. in the present context, the significance of company stakeholders in exerting influence on businesses has become increasingly pivotal, thereby rendering stakeholder theory more indispensable than ever before. in order to achieve their long-term objectives, companies must prioritise the needs and desires of all stakeholders rather than solely focusing on those deemed most significant. these groups will possess different levels of legal influence. according to the resource-based view (rbv), the construction of unique, environmentally friendly goods and services requires key abilities that are effective, environmentally safe, financially viable, and widely accessible (marín-vinuesa, scarpellini, portillotarragona, & moneva, 2020). furthermore, numerous governments worldwide, including the united kingdom, are currently undertaking efforts to mitigate the excessive release of carbon emissions and incentivize corporate engagement (jang, 2013) through the implementation of more stringent carbon regulations and protocols (karim, albitar, & elmarzouky, 2021; mahajan, tingley, & wagner, 2019). this could potentially impede regular business operations. in the present context, the significance of company stakeholders in exerting influence on businesses has become increasingly pivotal, thereby rendering stakeholder theory more indispensable than ever before. in order to achieve their long-term objectives, companies must prioritise the needs and desires of all stakeholders rather than solely focusing on those deemed most significant. these groups will possess different levels of legal influence. according to the resource-based view (rbv), the construction of unique, environmentally friendly goods and services requires key abilities that are effective, environmentally safe, financially viable, and widely accessible. in response to the growing concerns surrounding environmental degradation and the ongoing global discourse on environmental issues, various international entities, including the united nations and the european union, along with regulatory bodies across the globe, have set forth environmental targets aimed at reducing their overall carbon emissions (van emous, krušinskas, & westerman, 2021). likewise, zhang, liang, jin, and shen (2020) propose that the utilisation of eni represents a viable approach to effectively mitigate environmental concerns, such as the reduction of co2 emissions. at a more detailed level, businesses may be motivated by a range of factors to decrease their overall carbon emissions, primarily through responding to the diverse demands of multiple stakeholders who demonstrate an awareness of the critical significance of environmental preservation (van emous, krušinskas, & westerman, 2021). technological advancements in the environmental sector may be associated with the integration of renewable energy sources, such as solar power. these endeavours are commendable manifestations of environmental advancement as they effectively reduce energy consumption and mitigate carbon emissions (töbelmann & wendler, 2020). according to barbieri et al. (2017), it is asserted that eni exerts a significant adverse impact on pollution emissions within the american manufacturing industry. in their recent study, konadu, ahinful, boakye, and elbardan (2022) look at the relationship between board diversity, carbon emissions, and the potential moderating effect of environmental and social governance (esg) factors, specifically the environmental, social, and governance (esg) net impact (eni) metric. the authors use data from the united states to explore this relationship and assess whether eni plays a moderating role in the correlation between board diversity and carbon emissions. numerous studies examining the relationship between co2 emissions and innovation often fail to consider the potential impact of energy and natural resource intensity (eni) as a significant determinant that could effectively mitigate co2 emissions. some studies incorporate eni as a factor (ganda, 2019; mensah et al., 2019), while others primarily concentrate on the national level (e.g., ma). according to zhang, peng, ma, and shen (2017), the effectiveness of eni as a potential means to significantly reduce co2 emissions will be estimated. the findings presented in their study provide evidence supporting the effectiveness of china's environmental and energy intensity (eni) policies in reducing carbon emissions on a global scale. there is a notable association between heightened energy efficiency and reduced carbon emissions. furthermore, they develop an appreciation for the importance of innovation resources and knowledge innovation in the efforts to combat climate change. environmental innovation and carbon dioxide emissions the utilisation of a resource-based approach offers a comprehensive theoretical framework to examine the importance of resources in various aspects of envinn, as well as their inherent value. the success of a company in the competitive market is contingent upon its capacity to acquire resources that possess distinct value, are challenging to imitate, and are essential for its operations (lee & min, 2015). previous studies have provided evidence to support the notion that innovation has a substantial impact on reducing carbon dioxide emissions (ganda, 2019; tnani, 2018). zafar, saud, and hou (2019) conducted a study to examine the potential impact of investments in innovation and technology on carbon dioxide equivalent emissions (co2e) within the member countries of the organisation for economic co-operation and development (oecd). the results of this study suggest that investments in research and development (r&d) have a significant and adverse effect on carbon dioxide equivalent emissions (co2e). furthermore, the number of patents has a substantial and positive impact on carbon emissions. mensah et al. (2019) argue that innovation plays a crucial role in the reduction of carbon dioxide emissions (co2e) within the majority of oecd countries. moreover, the study conducted by erdoğan, yıldırım, yıldırım, and gedikli (2020) arrives at the finding that the agbioforum, 25(1), 2023 | 206 muthuswamy & sharma — moderating effects of environmental governance on environmental innovations and carbon dioxide emissions presence of innovation, increased investment in research and development (r&d), and the exportation of high-tech goods all contribute to a reduction in carbon dioxide emissions (co2e). other studies place greater emphasis on the examination of how technological advancements influence carbon dioxide emissions across various nations. investments in advanced, eco-friendly technologies have been shown to significantly mitigate carbon dioxide equivalent emissions (co2e) and improve overall environmental conditions (ali, abdullah, & azam, 2016). according to the study by meirun et al. (2021), there is a 0.017% decrease in carbon dioxide emissions (co2e) for every 1% increase in the presence of ecologically efficient patents. in another study conducted by fethi and rahuma (2019), an investigation was carried out to analyse the response of the top 20 exporters of refined oil from 2007 to 2016 towards eco-innovation, specifically in relation to carbon dioxide emissions (co2e). researchers have discovered that eco-innovation has a detrimental impact on the environment through the amplification of carbon dioxide equivalent emissions (co2e). in the year 2021, mongo, laforest, belaïd, and tanguy (2022) conducted a study to examine the impact of environmental advancements on carbon dioxide equivalent emissions (co2e) in 15 european countries over a period of 23 years. the results of their study indicate that envinn interventions generally result in a reduction of co2 emissions over a longer period of time. however, in the short term, the observed effects appear to be the opposite, indicating a temporary increase in emissions. to examine the impact of envinn on carbon dioxide emissions (co2e), töbelmann and wendler (2020) conducted an analysis utilising various environmental patentability measures as a proxy for envinn. these findings elucidate the reasons behind the reduction of carbon dioxide equivalent emissions by envinn. zhang, jin, and shen (2020) assert that a significant proportion of environmental innovation (envinn) endeavours in china effectively mitigate carbon emissions. the enhancement of energy efficiency significantly contributes to the reduction of carbon emissions. furthermore, it has been found that the availability of resources for innovation and the development of knowledge in the field of innovation are crucial factors in effectively reducing carbon emissions. albitar, abdoush, and hussainey (2022) have presented supplementary evidence indicating a significant and adverse impact of envinn on co2e. it was also discovered that envinn had a notable influence on co2e (sinha, sengupta, & alvarado, 2020). subsequent investigations have revealed the lack of a significant impact of envinn on co2e (enciso-alfaro & garcíasánchez, 2023). previous discussions have suggested a potential association between envinn and co2, although the results have been inconclusive. therefore, it is recommended that further research be conducted to investigate this relationship. in light of this, the following research hypothesis is proposed. h1: environmental innovation has significant effect on co2 emissions. moderation effect of environmental governance previous research has primarily focused on the direct impact of innovation on carbon dioxide emissions (co2e) (fethi & rahuma, 2020; hashmi & alam, 2019; mongo, laforest, belaïd, & tanguy, 2022). the aforementioned findings lack conclusive evidence, although envinn has identified a noteworthy influence on carbon dioxide equivalent emissions (salehi et al., 2022). subsequent investigations have revealed the lack of a significant impact of envinn on co2e (albitar, borgi, khan, & zahra, 2023). the preceding discourse has indicated a potential correlation between envinn and carbon dioxide; however, the findings are inconclusive. consequently, it is advisable to pursue further investigation in alternative contexts. according to spencer, zanna, and fong (2005), the presence of inconsistent results necessitates the consideration of moderating variables. in theory, the implementation of effective governance practices, guided by a stakeholderoriented approach, can effectively communicate to the market the extent to which enterprises are committed to safeguarding the interests of their diverse stakeholders (cormier, lapointe-antunes, & magnan, 2015). this may also have an impact on the relationship between envinn and co2e. the resource-based approach posits that companies can gain a competitive advantage by demonstrating a high level of commitment to meeting stakeholder expectations through the implementation of robust governance and environmental policies, such as the ability to provide more impactful environmental innovations. this could potentially necessitate a positive moderating impact on the relationship between envinn and a reduction in co2e. in contemporary times, firms are facing heightened difficulties in fostering enhanced environmental innovation (envinn) skills. this predicament arises from the escalating environmental limitations imposed by both the market and governmental entities (lee, kuo, & liu, 2023). according to barney et al. (2011), the proposition is made to extend the "resource-based view" (rbw) framework by integrating natural advantages and limitations. this integration would enable a company to leverage its valuable, non-imitable, scarce, and inflexible resources, thereby establishing a sustainable competitive advantage. in essence, it is imperative for businesses to give precedence to long-term resource allocation as opposed to short-term profit maximisation, which has detrimental effects on the environment. the attainment of a competitive advantage by a corporation may be facilitated by its ability to envision and construct sustainable goods and technology (fethi & rahuma, 2020). the study by afrifa, tingbani, yamoah, and appiah (2020) examines the connection between innovation contribution and co2e as well as the potential moderating effects of country-level governance factors. the study utilises a dataset consisting of 725 observations across different countries and years, focusing specifically on a sample of 29 emerging nations. the primary findings of the study indicate that there is a negative relationship between innovation input, as quantified by the proportion of research agbioforum, 25(1), 2023 | 207 muthuswamy & sharma — moderating effects of environmental governance on environmental innovations and carbon dioxide emissions and development (r&d) expenditures to gross domestic product (gdp), and carbon dioxide (co2) emissions. if a corporation has incorporated board-level considerations regarding global warming, it is possible to ascertain its dedication to addressing climate change at a more detailed level. the commitment of boards can be assessed by their capacity to regulate carbon emissions, the formation of a collective body to address global warming issues, or the acknowledgment of senior executives who successfully attain sustainability and carbon reduction objectives (ioannou, li, & serafeim, 2016). to date, there has been a dearth of research investigating the moderating influence of sustainable governance on the relationship between envinn and co2e. therefore, this study provides a valuable opportunity to contribute to the existing scholarly literature. in light of the discussion above, environmental governance as a moderating effect between envinn and co2e is hypothesized below, h2: environmental governance significantly moderates between environmental innovations and carbon dioxide emissions. the preceding discourse serves as the basis for the construction of a research framework. the existing body of literature primarily concentrates on the direct influence of environmental innovation (envinn) on carbon dioxide emissions (co2e), while giving comparatively less consideration to the indirect moderating effects. in a similar vein, prior research has predominantly concentrated on countries other than saudi arabia, with limited attention given to the latter. hence, taking into consideration the aforementioned gaps, the following research framework is proposed, comprising three types of variables: environmental innovation as an independent variable, environmental governance as a moderating variable, and co2e as a dependent variable. the variables depicted in figure 1 below are anticipated. figure 1. conceptual framework research methodology this study employs two research methodologies, specifically the quantitative and qualitative research approaches. qualitative research is a methodology employed in the field of human and social sciences with the objective of elucidating individuals' deepest thoughts and emotions. the primary objective of quantitative research is to generate numerical data and objective facts by employing statistical, logical, and mathematical methodologies (dimitrov, 2008). the sample consists of all companies from saudi arabia that are included in the bloomberg database and for which data are available for the period spanning from 2010 to 2021. a total of one hundred companies were listed on the bloomberg platform. bloomberg is a comprehensive financial services platform that offers extensive financial and economic data across global market sectors. it incorporates environmental governance indicators sourced from annual reports and the bloomberg sustainability survey. hence, the present study has employed a quantitative research methodology (bloomfield & fisher, 2019). the longitudinal nature of the current study is attributed to the fact that data was collected at various time intervals (carlson, alan sroufe, & egeland, 2004).. in line with previous research (nadeem, bahadar, gull, & iqbal, 2020; zaman et al., 2021), the independent variable in this study is the participants' environmental innovation (envinn) scores. these scores were obtained from the eikon database. the corporation's ability to improve existing envinn systems and practices, as well as efficient and environmentally friendly products and activities, with the aim of reducing environmental costs and responsibilities for consumers, thereby achieving new opportunities in the market, is indicated by the envinn score. the ecological innovation index is quantified on a scale ranging from zero to one hundred. furthermore, the assessment of a company's environmental governance encompasses the examination of the subsequent criteria. to commence, an examination is conducted to ascertain the presence of an environmental committee (enc) within the organisation's board structure, which convenes on a regular basis to deliberate and advance matters pertaining to the environment. in the event that an error correction code (enc) is detected, the binary variable enc will assume a value of 1; otherwise, it will assume a value of 0. next, we examine the correlation between executive compensation (encom) and environmental performance. in order to ascertain whether the business offers incentives for individual environmental risk management, encom can be assigned a binary value of either 1 or 0. a parameter is used as a metric, denoted as 1 when a company introduces sustainability initiatives and 0 otherwise, to ascertain its classification as a sustainability reporting company (susr). in conclusion, the utilisation of an indicator variable is employed to ascertain the presence of external assurance in the sustainability report (susa). a value of 1 signifies the existence of external assurance, while a value of 0 denotes the absence of external assurance. hence, the summation of the aforementioned four factors is conducted in order to assess the comprehensive efficacy of a company's environmental environmental innovations carbon dioxide omissions environmental governance agbioforum, 25(1), 2023 | 208 muthuswamy & sharma — moderating effects of environmental governance on environmental innovations and carbon dioxide emissions governance. nevertheless, the current study employed two control variables. return on assets was determined by dividing net income by total assets, while liquidity was assessed using the current ratio. in the concluding phase, the investigation ascertained the aggregate amount of carbon dioxide (co2) emissions, measured in metric tonnes, generated by the organisation (bui, houqe, & zaman, 2020; gerged, matthews, & elheddad, 2021). greenhouse gas emissions, referred to as carbon dioxide (co2) emissions in scholarly literature, encompass carbon dioxide, methane, and nitrous oxide (bui, houqe, & zaman, 2020). in the present context, it can be stated that an organisation's aggregate emissions would encompass the entirety of its greenhouse gas emissions. to achieve data standardisation, we performed a conversion of the quantity of carbon dioxide emissions released into the earth's atmosphere to its corresponding natural logarithm. econometrics models this section represents the econometric model of the study which is discussed below in two models. co2 emission= β0+ β1envinn+β2boi+β3roa+β4liquidity+ϵ (m-1) co2 emission= β0+ β1envinn+ β2envinn*envgov+β3boi+β4roa+β5liquidity+ϵ (m-2) equation 1 and 2 introduce the variables co2e, envinn, boi, roa, liquidity, and envgov. co2e is the dependent variable, representing carbon dioxide emissions. envinn is the independent variable, while boi, roa, and liquidity are control variables. lastly, envgov is a moderating variable that represents environmental governance. descriptive statistics “descriptive statistics for the dependent, independent, and control variables” remain existing within table 1 for all sampled businesses. the mean carbon dioxide (co2) emissions amount to 32,720 metric tonnes, while the average envinn score stands at 23, which represents 21 points out of a total of 88,890 possible points. the envgov score typically falls within the range of 0 to 5, with an average value of approximately 1.87. this value serves as an indicator of the effectiveness of environmental governance. on average, boards consist of 8.221 members, with 42% of these members serving as independent directors. additionally, approximately 21.56% of board members are women. finally, it is worth noting that the average return on assets (roa) is 0.073, while the average liquidity ratio remains at 1.707. table 1 presents the projected values for all of the aforementioned variables. table 1. descriptive statistics mean standard deviation minimum maximum co2e 32.720 6.341 2.121 44.246 envinn 23.21 22.42 0 88.890 envgov 1.87 2.11 0 5 bi 0.420 0.125 0 0.600 bs 8.221 2.523 1 16 bd 21.557 12.570 0 64.556 bm 8.272 3.734 0 45 enc 0.476 0.462 0 1 encom 0.319 0.345 0 1 susr 0.602 0.41 0 1 susa 0.474 0.451 0 1 roa 0.073 0.153 0.871 2.93 liquidity 1.707 1.486 0.357 11.72 correlation analysis the correlation matrix for the variables included in the analysis is presented in table 2. the presented correlation matrix illustrates the association between co2e (carbon dioxide emissions) and contemporary envinn (environmental innovation). additionally, the interrelationships among the different factors are taken into consideration. the objective of this study is to ascertain that none of the variables under investigation exhibit multicollinearity. the correlation analysis conducted in table 2 does not reveal any statistically significant evidence of multicollinearity in relation to the model. furthermore, the "variance inflation factor" (vif) is computed, with values ranging from 1.205 to 3.131 and a mean of 2.11. moreover, the analysis does not reveal any significant evidence of substantial multicollinearity issues, as suggested by the pearson correlation coefficients and variance inflation factor (vif) statistics. table 2. correlation analysis co2e l.envinn envgov boi liquidity roa co2e 1.000 envinn 0.044 1.000 envgov 0.332 0.181 1.000 boi 0.197 0.097 0.099 1.000 liquidity 0.372 0.100 0.068 0.082 1.000 roa 0.059 0.029 0.095 0.045 0.016 1.000 note: co2e-carbon dioxide emissions, envinn-environmental innovations, envgov-environmental governance, boi-board independence, roa-return on assets hypothesis testing diagnostics test in order to evaluate the presence of multicollinearity in the data, the variance inflation factor (vif) is also computed. it is suggested that the values for the variance inflation factor (vif) should ideally be below 5 or 10 (romero-gonzalez et al., 2018). the test results indicate that the variance inflation factor (vif) does not exceed a value of 5, suggesting the absence of multicollinearity in the dataset. the anticipated outcomes are presented in table 3 below. table 3. variance inflation factor m-1 (vif) m-2 (vif) envinn 1.607 1.205 envgov 2.384 2.234 boi 1.532 3.132 liquidity 2.136 3.322 roa 1.321 3.131 furthermore, an assessment of heteroskedasticity was conducted for both models. according to romerogonzalez et al. (2018), the criterion for heteroskedasticity is that the values should exceed 0.05. the predicted values in table 4 indicate that the values of the entire model consistently exceed 0.5, suggesting the absence of heteroskedasticity issues. table 4. heteroskedasticity results m-1 m-2 envinn 0.071 0.092 regression results this section of the paper presents the anticipated results of the hypothesis. the results of the hypothesis remain agbioforum, 25(1), 2023 | 209 muthuswamy & sharma — moderating effects of environmental governance on environmental innovations and carbon dioxide emissions consistent with the predictions made in both the direct and indirect effect models, which will be further elaborated upon in the following discussion. direct effect after conducting the diagnostic testing, the bruach pagan tests continue to be utilised in order to ascertain whether the aggregated and randomised effects of model-1 were deemed acceptable as models. the p-values were found to be less than 0.05, indicating the validity of a "random effect model (rem)" that allows for conducting a hausman test to compare the random effect model with the fixed effect model (fem). the hausman test was utilised to assess the appropriateness of the model for this dataset. if the p-value exceeds 0.05, it is necessary to accept the null hypothesis and apply the rem (random effects model). on the contrary, if the p value remains below 0.05, the use of the finite element method (fem) becomes valuable for analysing the data. the findings indicate that the p value is less than 0.05, suggesting that the use of the fem (fixed effects model) is appropriate. the results of the regression analysis, which investigates the impact of environmental innovation (envinn) on co2 emissions, are presented in table 5. the results obtained from estimation models, where total co2 emissions are considered endogenous variables at a significance level of 1%, reveal that the overall co2 emissions factor exhibits statistical significance and a negative relationship. this suggests that envinn has a significant impact on reducing co2 emissions. the aforementioned findings are consistent with prior research that has identified a robust negative correlation between innovation and carbon dioxide equivalent emissions (co2e) (ali, abdullah, & azam, 2016; fethi & rahuma, 2019). töbelmann and wendler (2020) conducted a study that did not establish a significant correlation between envinn and greenhouse gas emissions. however, recent scholarly investigations present contrasting findings on this matter. companies have the potential to mitigate their adverse environmental impacts, particularly in terms of reducing carbon dioxide (co2) emissions, through the adoption of novel pollution and resource management approaches. furthermore, fixedeffects are employed to account for unobservable organisational heterogeneities over time that are likely to be consistent but may influence the relationship between predictors and outcomes, which may be disregarded when using ordinary least squares (ols) estimation, as suggested by wooldridge (2002). the organisation variables that were not identified maintained a significant correlation with the other businesses in our sample, as indicated by the hausman test. consequently, we opted to utilise a random-effects estimation method rather than a fixed-effects approach. the fixed-effects model demonstrated superior performance compared to the random-effects model in our analysis. there exists a statistically significant inverse correlation between envinn and co2 emissions (p =.00604**, table 5, fixed-effects model). the results from model 1 in table 4 show that heterogeneity at the firm level doesn't have a big effect on the results from using ordinary least squares (ols) methods. the data collected up to this point provides support for the acceptance of the initial null hypothesis. the stakeholder theory provides a conceptual framework that elucidates the significance of board members' actions in meeting the needs and expectations of shareholders and other significant stakeholders. directors may feel compelled to fulfil stakeholder expectations regarding envinn outcomes due to the requirement of obtaining stakeholder approval for the availability and accessibility of essential resources. consequently, the emission of carbon dioxide into the atmosphere is expected to diminish as a consequence of this phenomenon. the findings of the study demonstrate a correlation between effective environmental governance and reduced carbon dioxide emissions on a broader scale. the quality of the board index has a significant impact on carbon emissions, as evidenced by the control variables. the direction of the relationship suggests that an increase in the board index is associated with negative effects on carbon emissions. furthermore, in contrast to a company's liquidity or return on assets (roa), businesses have the potential to derive advantages from augmenting their co2 emissions through the utilisation of leverage. the results obtained from the aforementioned discussion will be presented in table 5 below. table 5. direct effect results pooled effect co2e fixed effect co2e envinn -0.0122 (0.0031) 0.00403 (0.00173) boi -0.0122 (0.0210) 0.0218 (0.00294) roa -0.0217 (0.0130) 0.138 (0.0813) liquidity -0.527 (0.0510) 0.00825 (0.00256) constant -4.017 (1.321) 2.522 (1.264) r2 0.252 0.194 indirect effect results after looking at the direct effect model, the next step is to look at how the relationship between environmental innovation (envinn) and co2 emissions (co2e) is affected by environmental governance (envgov). table 6 presents the moderating effect of envgov on envinn. the findings of this study suggest that the variable envgov plays a significant and negative moderating role in the relationship between envinn and co2e. as a result, it is evident that envinn influences the association between envinn and co2e. businesses that possess robust environmental governance structures experience greater advantages from environmental innovation (envinn), resulting in a subsequent reduction in their carbon dioxide emissions (co2e). the level of envgov can increase the explanatory capacity of the relationship between envinn and co2e, which is currently limited. the results validate the findings. according to the resource-based view (rbv), organisations can maintain a competitive advantage when their resources and competencies possess characteristics such as value, limited imitability, rarity, and inimitability (hart, 1995; lee & min, 2015). companies that possess robust environmental governance (envgov) structures are more inclined to effectively decrease their carbon dioxide (co2) emissions by leveraging the resources at their disposal, thereby gaining a sustainable competitive agbioforum, 25(1), 2023 | 210 muthuswamy & sharma — moderating effects of environmental governance on environmental innovations and carbon dioxide emissions advantage. a comparable moderating effect pertaining to governance factors at the national level was identified by afrifa, tingbani, yamoah, and appiah (2020). to the best of the writers' knowledge, there is a lack of corporate-level analyses that have examined the potential moderating influence of environmental governance (envgov) on environmental innovation (envinn) and carbon dioxide emissions (co2e). as a result, the findings presented in this study make a substantial contribution to the existing body of knowledge on co2e. the aforementioned outcomes are presented in table 6 below. table 6. moderating affect results co2e envinn -0.00214 (0.0014) envgov -0.138 (0.0694) envinn*envgov -0.00231 (0.00123) boi -0.0225 (0.00608) roa -0.0240 (0.0127) liquidity -0.118 (0.0434) constant 8.299 (1.253) robustness in order to mitigate the potential impact of endogeneity on the results, researchers continue to employ a "generalised method of moments (gmm)" estimator. this is because the variable envinn has the potential to be endogenous, meaning it may be influenced by other factors that have not been accounted for in the analysis. gerged, albitar, and al-haddad (2023) identified two distinct processes as a result of their research. by employing a sensitivity analysis, it is possible to implement a generalised method of moments (gmm) model in order to evaluate the potential existence of endogeneity issues. according to earlier studies (ağazade, 2023; ganda, 2019), our primary measure of co2 emissions is a lagging indicator. based on our research findings, it is evident that there continues to exist a significant inverse correlation between envinn and co2 emissions, as indicated by the aggregate scores. table 7, presented below, provides a forecast of the previously mentioned results. table 7. robustness results co2e envinn -0.0144** (0.00280) envgov -0.0165** (0.0361) boi -0.00616* (0.00516) roa 0.0339 (0.0346) liquidity 0.126 (0.130) constant 0.182 (1.774) the significance of environmental innovation (envinn) lies in its potential to effectively mitigate carbon emissions, thereby contributing to environmental sustainability. this, in turn, facilitates businesses' environmental performance (töbelmann & wendler, 2020). this research utilises a dataset comprising a specific group of companies listed on the london stock exchange during the period from 2016 to 2020. the objective is to investigate the impact of environmental innovation (envinn) on carbon dioxide emissions (co2e), while also considering the moderating effect of environmental governance. the findings indicate that the implementation of envinn has the potential to effectively mitigate carbon emissions in both scope 1 and scope 2 categories. in a similar vein, it is observed that environmental governance plays a moderating role in the relationship between environmental innovation (envinn) and carbon dioxide emissions. the data confirmed our hypothesis that the implementation of environmentally friendly technological advancements has a discernible impact on carbon dioxide emissions. furthermore, we argue that there exists a positive correlation between enhanced environmental governance within businesses and increased environmental innovation (envinn). the results of our study indicate a compelling rationale for the implementation of envinn, highlighting its potential to contribute to a decrease in carbon emissions. these outcomes hold significant promise for generating positive global outcomes. the endogeneity concern is effectively mitigated through the application of generalised method of moments (gmm) techniques, leading to consistent findings. practical and theoretical implication this study is regarded as a pioneering research endeavour that expands upon the existing framework by examining the moderating influence of "environmental innovation" (envinn) on the relationship between envinn and carbon dioxide emissions, particularly within the specific context of saudi arabia. the inclusion of this supplementary compilation of literature may contribute to enhancing the research by augmenting the findings of the expanded theoretical framework. the findings of this study also carry significant implications for businesses seeking to improve their environmental innovation (envinn) efforts and reduce their carbon emissions. managers are encouraged to adopt innovative strategies for addressing environmental degradation, encompassing the utilisation of current environmentally friendly technologies that result in reduced carbon dioxide emissions. additionally, it is imperative for managers to allocate increased financial resources towards the advancement and implementation of both existing and future environmental technologies. this encompasses both individual funding for academic pursuits as well as collective expenditure on educational endeavours. the intended meaning of this is "the pooling of financial resources to invest in high-technology, developing firms that are at the forefront of the 'green' technology movement." if this strategy were to be executed, it would possess the capability to expedite the dissemination of pioneering technologies that have the capacity to enhance energy efficiency and foster the production of alternative energy on a sectoral or industry-wide level. policymakers, including state governments, localities, and regulatory agencies, ought to formulate comprehensive strategies that encompass mediumand long-term objectives. these plans should aim to provide financial and practical support to businesses, enabling them to effectively adopt and implement state-of-the-art innovations that promote resource conservation. one potential strategy for achieving this objective could involve the provision of financial agbioforum, 25(1), 2023 | 211 muthuswamy & sharma — moderating effects of environmental governance on environmental innovations and carbon dioxide emissions assistance, such as grants or subsidies, to enterprises with the aim of supporting their research and development endeavours. despite potential reluctance from policymakers and businesses to augment expenditures amidst the aftermath of the covid pandemic and the european conflict, such action could yield substantial long-term consequences. specifically, it has the potential to invigorate the global economy and advance progress towards the objectives outlined by cop26, aimed at mitigating the acceleration of global warming. furthermore, the government has the potential to foster green innovation through the implementation of environmental policy instruments, including but not limited to subsidies for emissions taxes, environmental credits, green procurement practices, pollution mitigation measures, and regulatory frameworks (li, liao, & albitar, 2020). limitations and recommendation the paper presents a variety of recommendations and utilises appropriate research methodologies. however, it is imperative to bear in mind that research possesses notable constraints that necessitate consideration when interpreting the findings. firstly, it is important to note that the sample used in this study was limited to companies operating exclusively within the borders of saudi arabia. in order to enhance the comprehensiveness of the study, it may be beneficial to juxtapose the findings with potential outcomes observed on other prominent international stock exchanges, such as "international stock exchanges like the dow jones, dax, tokyo," etc. the task at hand necessitates a significant investment in terms of time, financial resources, and exertion. nevertheless, employing the methodology outlined in this study holds promise for future research endeavours aimed at achieving this objective. acquiring access to such information may also present challenges. furthermore, the scope of this study was limited not only to the geographical context of saudi arabia but also to a relatively narrow temporal range spanning from 2010 to 2021. future research could potentially derive substantial benefits from conducting a longitudinal analysis encompassing a more extensive time period. by extending the scope of investigation to encompass earlier years, researchers may have the opportunity to identify discernible patterns in the progression of eco-innovation. the utilisation of research findings from 2021 and 2022 can provide valuable insights into the influence of envinn both prior to and during the covid era, as well as in the post-covid period. furthermore, the current study has certain limitations regarding the utilisation of a quantitative research approach and its exclusive reliance on data collected from annual reports. it is important to acknowledge that there are alternative sources for data collection. therefore, future research endeavours could explore the possibility of employing survey-based or interview-based methods, as these approaches have the potential to enhance the overall generalizability of the study results. therefore, further inquiry could be conducted on the utilisation of mixed methods in order to enhance the generalizability of research findings. acknowledgement this work was supported through the ambitious funding track by the deanship of scientific research, vice presidency for graduate studies and scientific research, king faisal university, saudi arabia [grant 4221]. references abdulqadir, i. a. 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apiatyamin53@gmail.com previous studies have investigated the influence of financial development on carbon emissions. however, there has been limited research conducted on the effects of green financing, specifically on carbon reduction. in order to address the aforementioned issue, the current study proposes the development of a green financing development index that incorporates four key factors: green credit, green investment, green insurance, and green securities. utilising data spanning from 2000 to 2020, this study employs a vector error correction model (vecm) to investigate the interrelationships between the pace of green financing advancement, non-fossil energy utilisation, and carbon intensity. the findings indicate that the green finance sector in indonesia experienced rapid growth. additionally, the development index for green financing and the adoption of nonfossil energy sources were found to be associated with a decrease in carbon intensity. similarly, an increase in the severity of carbon emissions has impeded the growth of non-fossil fuel energy consumption and has also hindered the funding of environmentally friendly initiatives, ultimately impeding the advancement of green finance. moreover, the integration of green finance and carbon intensity played a pivotal role in shaping the adoption of non-fossil energy sources in indonesia, yielding significant outcomes driven by policy measures. as a result, the outcomes of green finance initiatives have consistently proven to be inadequate and unsuccessful. the paper proposes strategies to bolster the implementation of green finance policies, promote the adoption of non-fossil energy sources, and establish a carbon trading platform. keywords: carbon severity, non-fossil energy usage, index of green finance development, emission depletion introduction despite the implementation of indonesia's "open-door" strategy in 1978, the nation has achieved significant advancements in economic growth, manufacturing, and socioeconomic development. however, the utilisation of resources and the degradation of the environment have become significantly more severe during the course of this process. according to data from the global carbon atlas (global carbon project, n.d.), the emission of carbon dioxide (co2) in indonesia experienced a significant increase from 1,455 million metric tonnes (mt) in 1978 to 9,839 mt in 2017. consequently, indonesia has surpassed the united states and now ranks among the largest contributors to co2 emissions worldwide since 2006. while indonesia has experienced a decrease in its carbon intensity, as indicated by the reduction in carbon emissions per unit of gdp over time, it remains considerably higher compared to several other economies. as an example, the carbon intensity of indonesia in the year 2010 was recorded at 1.79 kg/usd, a value that was approximately 11 times higher than that of france, according to the world bank (2019). the indonesian government made a commitment at the 2009 copenhagen climate conference to reduce carbon emissions, which have significant effects on global climate change and human social activities. indonesia set a goal to cut co2 emissions per unit of gdp by 40% by 2020 compared to levels seen in 2005. 1 the bank of indonesia, in collaboration with seven governments and authorities, published principles in the handbook on establishing a green financial structure in 2016 according to the indonesia-us collaborative declaration on climatic changes, it is projected that indonesia will experience an increase in carbon dioxide emissions around the year 2030. additionally, the nation aims to enhance the proportion of non-fossil fuel sources used for energy production to reach 20 percent by 2030. consequently, green finance offers a distinct trajectory for the future of indonesia. in general, green finance pertains to the provision of investment, funding, operational finances, and associated financial activities for environmentally sustainable initiatives, with a primary emphasis on the preservation of the natural environment1. on june 4, 2003, prominent international banks signed the widely recognised "equator principles" in london (scholtens & dam, 2007). these collaborative agreements aim to address environmental and social challenges that are related to financial matters. since the implementation of green finance regulations by the indonesian administration in 2015, there has been a continuous advancement in indonesia's green financial sector. table 1 presents the various strategies and their corresponding ramifications. according to guild (2020), the table displays green bonds as a significant source of financing for green investments. these bonds, which adhere to global regulations for green financing, accounted for 18 percent of the global market in 2018. notably, indonesia emerged as the second-largest issuer of green bonds worldwide, following the united states. mailto:apiatyamin53@gmail.com agbioforum, 25(1), 2023 | 180 kamaluddin — nexus between green finance, renewable energy, and carbon emission: empirical evidence from indonesia in 2017, the total value of green credit generated by indonesia's 21 prominent financial institutions amounted to 8.29 trillion rupiahs. the total trading volume in the primary and subsidiary spot markets within the domestic carbon trading pilot programme reached 282 mt by the conclusion of 2018, with a total trading turnover of 6.2 billion rupiahs. based on a recent report by the climate bonds initiative (cbi) in 2019, indonesia has become a notable contributor to the worldwide green finance sector. significant advancements have been observed in indonesia's green financial sector subsequent to the enactment of green finance regulations in 2015. indonesia has emerged as a significant participant in the green bond market, attaining the second highest position worldwide in terms of the volume of bonds issued, with the united states being the sole country ahead (guild, 2020). in 2018, the issuance of green bonds from indonesia made a significant contribution to the global market, accounting for 18 percent of the total circulation. furthermore, significant progress has been achieved in indonesia's green credit initiatives. according to the results of a study by the indonesian financial services authority (ojk) in 2018, the top 21 financial institutions in indonesia generated 8.29 trillion rupiahs worth of green credit overall in 2017. the aforementioned significant figure serves as a prime illustration of the unwavering commitment exhibited by these financial institutions towards endorsing environmentally conscious initiatives and fostering the advancement of sustainable development. additionally, it is noteworthy to mention indonesia's endeavours in the realm of carbon trading. according to recent data provided by the indonesian ministry of environment and forestry (2022), the domestic carbon trading pilot programme has experienced notable expansion. by the end of 2018, the aggregate trading volume in both the primary and secondary spot markets amounted to 282 mt, suggesting a growing interest and active participation in carbon trading endeavours within the nation. the outcome of this led to a cumulative trading turnover of 6.2 billion rupiahs, highlighting the potential for a thriving carbon market in indonesia. the recent advancements observed in indonesia's green financial sector, which include the implementation of green bonds, green credit, and carbon trading, demonstrate the nation's unwavering dedication to sustainable finance and its capacity to emerge as a prominent figure in the international green finance arena (cbi, 2019; ojk, 2018; indonesian ministry of environment and forestry, 2022) (guild, 2020). table 1. green financial strategies and implementations of indonesia from 2015 years strategies ramifications 2015 comprehensive organizational development strategy to encourage ecological prosperity an overall concept for constructing a green financial structure has been established for the first time in indonesia. 2016 the 13th five-year plan's overview recommendations on establishing a green financial sector it is planned to "build a green financial framework, green credit and bonds, and a green development fund." a strategy to promote green finance in indonesia has been outlined. 2017 statement on the communist party of indonesia's 19th national congress it is planned to struct a market-oriented green, technologically network, green financing, vitalize energy preservation and eco-friendly safety, clean manufacture and non-fossil energy businesses. 2018 sustainable finance roadmap roadmap aimed to integrate ecological, social, and governance (esg) considerations into the pecuniary sector. it emphasized the importance of sustainable financing, including green bonds and green banking practices, to support the country's transition to a lowcarbon and environmentally sustainable economy 2019 organizational development strategy strategy aimed to promote sustainable and environmentally friendly economic growth 2020 indonesia green finance initiative aimed to mobilize private sector investments towards environmentally friendly projects source: the writers gathered and arranged the information this study primarily centres on the period spanning from 2000 to 2020, with the objective of constructing a green financial development index. to achieve this, a vector error correction model is employed to empirically investigate the relationship between green financing, nonfossil energy consumption, and co2 emissions in the context of indonesia. the study contributes to the existing body of literature in three distinct ways. prior studies have primarily concentrated on financial development rather than green finance, with a limited number of investigations exploring the relationship between green financing and co2 emissions. despite previous significant growth in green finance and indonesia's current status as the world's leading emitter of carbon, this study aims to examine the relationship between green finance and carbon intensity. additionally, the research will consider nonfossil energy usage as a third crucial factor. secondly, the study intends to establish a green financial development index based on government records. it is believed to be one of the pioneering endeavours in this field, according to the researchers' knowledge. the index comprises four financial factors, namely green credit, green securities, green insurance, and green investment. the indicators presented in the paper titled "guidelines on constructing a green financial network" by the bank of indonesia in 2016 are considered authoritative and serve as a reflection of the green finance structure. thirdly, the vector error correction model (vecm) offers the advantage of identifying causal relationships among variables, which aligns with another key objective of the present study, in addition to enabling the examination of long-term equilibrium associations. alternative methodologies employed in comparative research, which have focused on time-series statistics and examined long-term equilibrium relationships, have not established comparable causality. the primary objectives of this proposed paper are to provide novel evidence regarding the role of green finance in reducing co2 agbioforum, 25(1), 2023 | 181 kamaluddin — nexus between green finance, renewable energy, and carbon emission: empirical evidence from indonesia emissions, with the aim of supporting and guiding indonesia's environmental management efforts. likewise, this paper aims to put forth additional recommendations to facilitate the country's transition towards a green economy. related research numerous scholars have conducted investigations on the correlation between financial development and carbon intensity (ameyaw, yao, oppong, & agyeman, 2019; haifeng, yang, & huang, 2017; la rovere, grottera, & wills, 2018; zhou & li, 2019). despite the utilisation of various study techniques, empirical investigations have been conducted to examine information from multiple countries, including pakistan (abbasi & riaz, 2016), kuwait (salahuddin, alam, ozturk, & sohag, 2018), malaysia (shahbaz, solarin, mahmood, & arouri, 2013), economies with low middle income (khan, yaseen, & ali, 2018), regions with upper middle income (khan, yaseen, & ali, 2017), and states with higher income (khan, yaseen, & ali, 2019). the economies of south asia, as discussed by nasreen, anwar, and ozturk (2017), encompass the countries within this region. additionally, the economies of the asia pacific economic cooperation (apec) states, as examined by zaidi, zafar, shahbaz, and hou (2019), are also included. also, this encompasses the territory of china. the nations within the european union have indeed confirmed, as stated by he, tang, and wang (2016) and haifeng, yang, and huang (2017), that there is a negative correlation between carbon intensity and financial variables. however, it is important to note that this correlation varies across different nations. yet a limited number of research findings have yielded contrasting results. acheampong (2019) demonstrated a significant positive relationship between financial development and co2 emissions in a study encompassing 46 sub-saharan african nations from 2000 to 2015. acheampong employed the generalised method of moments (gmm) methodology in their study to accurately investigate associations by effectively addressing the issue of endogeneity (shao, schaffartzik, mayer, & krausmann, 2017). in line with the aforementioned findings, a research study conducted in turkey revealed that the advancement of financial systems played a substantial role in the generation of carbon dioxide emissions, ranking it second only to economic growth and urbanisation (pata, 2018). similar findings were observed in the case of 24 mena (middle east and north africa) countries, wherein financial indicators (specifically, the ratio of domestic funding to the private sector as a percentage of the actual gross domestic product) exhibited no significant association with carbon emissions reduction (charfeddine & kahia, 2019). moreover, it is imperative to establish specific essential prerequisites in order to establish a significant correlation between financial development and carbon intensity. the reduction of emissions in medium-sized countries, such as pakistan, is influenced by phases of significant financial sector expansion and high levels of liberalisation. however, it is important to note that financial factors have a relatively lower impact on carbon reduction compared to production measures like per capita income. this suggests that strategies aimed at promoting the financial development of such countries are crucial (abbasi & riaz, 2016). the impact of carbon dioxide emissions varies depending on the specific financial measures used, as the definition of financial development can vary across different contexts according to an econometric analysis conducted on indonesia's regional panel data, the impact of financial development and the volume of stock trading on carbon reduction is of significant importance. the quantification of carbon dioxide (co2) emissions reduction can be assessed through two distinct approaches: the magnitude of financing development and the marketplace cost of publicly traded corporations (guo, hu, & yu, 2019). consistent results were derived from other assessments investigating the impact of financial development on carbon dioxide emissions. the process of financial-scale development has been widely recognised as a significant contributor to the increase in emissions. conversely, the concepts of financial effectiveness and financialization have been found to have a mitigating effect on the emissions associated with the production and exchange of goods and services (huang & zhao, 2018). previous studies have also demonstrated a correlation between carbon dioxide emissions and financial factors. the impact of financial development on co2 emissions is relatively insignificant when compared to the utilisation of renewable energy sources. charfeddine and kahia (2019) conducted a study in the mena area and discovered that financial development does not appear to have a discernible effect. however, they did find that it can effectively mitigate co2 emissions. furthermore, a study conducted by charfeddine and kahia (2019) revealed a negative correlation between financial indicators and the adoption of sustainable energy. this finding implies that the expansion of financial activities in the mena region may potentially lead to a reduction in the implementation of sustainable energy practises. the evidence suggests that it is imperative for the mena nations to enhance the efficiency of their financial resource allocation. moreover, substantial evidence exists supporting the pivotal role of financial development in mitigating the magnitude of energy consumption and carbon emissions. for instance, prior research has established a positive relationship between financial development and carbon intensity in indonesian provinces. the amount of co2 emissions per unit of gdp serves as a proxy for this relationship. however, it has also been found that this effect is mitigated in neighbouring towns, resulting in a decrease in the overall severity of carbon emissions (liu & song, 2020). according to fang, gao, and sun (2020), there exists a positive relationship between financing size in indonesia and carbon severity, both in the short-term and long-term. this connection implies that larger financing sizes are associated with increased carbon emissions, which contradicts the anticipated positive outcome. the researchers argue that the promotion of financial development within the nation should be pursued agbioforum, 25(1), 2023 | 182 kamaluddin — nexus between green finance, renewable energy, and carbon emission: empirical evidence from indonesia as a means to identify strategies for reducing carbon emissions. the utilisation of multiple interpretations of financial indicators, along with the adoption of various data formats and methodologies, may contribute to the conflicting outcomes observed in previous research. hence, in this regard, liu and song (2020) employed the ratio of financial institution loans to gdp as a measure of financial development. in contrast, fang, gao, and sun (2020) utilised the ratio of bank payments to gross domestic product (gdp). similarly, liu and song (2020) utilised a spatial econometrics technique to construct panel data, whereas fang, gao, and sun (2020) employed the autoregressive distributed lag method-error correction model (ardlecm) using time series data. three gaps in the existing body of research can be identified based on the aforementioned evaluation. one of these factors is pertinent to the subject matter of the study. the examination of the relationship between green funding and carbon severity has received limited attention in prior scholarly investigations. it is imperative to comprehend the correlation between green finance and carbon intensity. the field of green finance has experienced substantial growth in recent years, with indonesia emerging as the leading contributor to global carbon emissions. the incorporation of alternative energy sources, specifically those that are not derived from fossil fuels, represents an additional pivotal factor that warrants careful consideration. the second gap pertains to the process of index creation. previous research in this particular domain has predominantly focused on investigating the impact of financial development on environmental stress while paying limited attention to the concept of "green growth." in light of the growing societal inclination towards sustainable development, there is an urgent requirement for further research. in accordance with legal documentation, we have established a green financial development index, representing a pioneering endeavour within this domain. the employed strategy is associated with the third identified gap in the existing research literature. researchers have employed the autoregressive distributed lag (ardl) framework to ascertain enduring correlations between variables, despite its limitations in capturing causal relationships among factors (abbasi & riaz, 2016; fang, gao, & sun, 2020; pata, 2018; salahuddin, alam, ozturk, & sohag, 2018). the present study addresses this matter by investigating the enduring employment phenomenon through the utilisation of the vector error correction model (vecm) and granger causality analysis. plan of the study according to prior studies, there is evidence suggesting that the expansion of financial resources plays a role in promoting the development of industrial frameworks. according to the works of ameyaw, yao, oppong, and agyeman (2019) and zhou and li (2019), there is also a direct correlation between carbon dioxide (co2) emissions and changes in a region's industrial system. in addition, prior research has already confirmed that the utilisation of non-fossil energy sources leads to a substantial decrease in carbon intensity and emissions of carbon dioxide (chen et al., 2018). this study aims to examine the correlations among three variables, namely, short-run, long-run, and casual, through the utilisation of the vector error correction model (vecm) methodology. modelling stipulation numerous frameworks examine the enduring and sustainable relationships between various factors. nevertheless, it is worth noting that in the face of exogenous shocks, there is a tendency for factors to deviate from their long-term equilibrium values within a shorter time frame (shao, wang, zhou, & balogh, 2019). the vector error correction model (vecm) not only estimates the long-term equilibrium relationships between variables, but it also uses a correction mechanism to align short-term deviations with the long-term equilibrium position. this is a dynamic process. moreover, it is assumed that these factors are endogenous in order to mitigate potential endogeneity concerns. the authentication and installation of the vecm framework require the execution of multiple processes, which encompass evaluation as a crucial component. firstly, it is necessary to conduct a unit root test in order to ascertain the dependability of a variable. the dickey-fuller (df), augmented dickey-fuller (adf), and phillips-perron (pp) tests are frequently employed as unit root tests. consequently, the study utilises a unit root test with a time trend to examine the time patterns of the green financial development index, carbon severity, and the percentage of nonfossil energy utilisation. furthermore, the selection of the optimal lag order has been based on a discriminatory criterion, and the assessment of the number of cointegrations has been conducted through cointegration testing. cointegration occurs when a set of two or more nonstationary time series combine to form a stationary time series. the johansen maximum likelihood approach and the engle-granger dual-step technique are widely used methodologies for conducting cointegration tests (shao, wang, zhou, & balogh, 2019). in previous studies, the cointegration relationship between variables was examined using a linear model. in the latter case, the determination of the number of cointegration vectors is exact, and the testing of cointegration interaction is also conducted. consequently, the aforementioned study utilises the johansen maximum likelihood methodology. further, in light of the findings from the aforementioned experiments, virtual environment and cognition (vec) simulations were also constructed. in order to investigate the relationships between green financing (gf), carbon intensity (ci), and the proportion of nonfossil energy usage (nfe) in existing research, a vec model has been constructed to analyse the logarithm of gf as well as the logarithm of nfe. 𝐷𝑌𝑡 = 𝛼0 + ∑ 𝛼𝑖 𝑀 𝑖=1 𝐷𝑌𝑡−𝑖 +∑ 𝛽𝑗 𝑀 𝑖=1 𝐷𝑌𝑡−𝑗 + 𝜃𝑉𝐸𝐶𝑀𝑡−1 + 𝜀𝑖 (1) the variable m represents the lag order, ε denotes the error term, and 〖dy〗_t represents the first difference of y_t. agbioforum, 25(1), 2023 | 183 kamaluddin — nexus between green finance, renewable energy, and carbon emission: empirical evidence from indonesia the error correction term, denoted as 〖vecm〗_(t-1), represents the long-term equilibrium relationship between factors. the adjusting coefficient θ quantifies the speed and direction of the equilibrium adjustment between factors when it deviates from the long-term equilibrium position. the coefficients of the difference term for each independent factor reflect the impact of the short-term fluctuations of every variable on the short-run variations in the outcome factor. the measurement of the effect of a single standard deviation ("impulse") from a disturbance term originating from an indigenous factor on both the current and anticipated outcomes of all endogenous factors is conducted through the utilisation of an impulse response function (irf). furthermore, the utilisation of variance decomposition (vd) has been employed to evaluate the contribution of each effect to the variation observed in endogenous factors. this approach allows for the determination of the relative significance of each impact on the endogenous factors within the analytical framework used to analyse the influence of structural impacts on said endogenous factors. moreover, the vector error correction model (vecm) technique offers the following advantages: 1) the utilisation of the vector error correction model (vecm) enables the assessment of the presence of a sustainable, long-term relationship between two variables through the application of unit root tests and cointegration analysis. while alternative methodologies like ardl share a similar objective, the methodologies employed in vecm, such as adf and pp testing for unit root analysis and cointegration verification, seem to be more comprehensive in nature. these approaches have already garnered support from various scholarly articles (fang, gao, & sun, 2020; salahuddin, alam, ozturk, & sohag, 2018). furthermore, the inclusion of a time trend in the unit root test enhances the robustness of the findings. 2) while the vector error correction model (vecm) can be employed for conducting causal analysis, methodologies such as autoregressive distributed lag (ardl), fully modified least squares, and dynamical ordinary least squares (dols) are not suitable for determining the causality of factors (jin-pei et al., 2019; rahman, khattak, ahmad, & khan, 2020; ulucak & khan, 2020). one of the main objectives of this study is to analyse the causal relationships among the three factors. therefore, we believe that the vector error correction model (vecm) is a more suitable methodology. 3) the utilisation of factors that exhibit the potential for either being stationary at order zero (i(0)) or at order one (i(1)) is a notable advantage of the autoregressive distributed lag (ardl) approach. this feature allows for a relaxation of the statistical assumption that an entire data series must be stationary at certain levels. this observation has been highlighted by stoian and iorgulescu (2020) as one of the key benefits of employing the ardl methodology. 4) upon employing the vector error correction model (vecm), it is observed that nearly all variables under scrutiny exhibit integrated order one (i(1)). 5) consequently, the aforementioned advantage appears inconsequential in relation to the subject matter under investigation. based on the findings of the present study (liddle, 2012), it has been observed that the use of dols may result in a reduction of degrees of freedom (df) in cases where there are numerous explanatory factors and limited timeframe annotations. 6) the inclusion of the vector error correction model (vecm) in this study is justified due to its established reputation and reliability as a tool for examining causal relationships between green financing, non-fossil energy consumption, and carbon intensity. collection and evaluation of variables using time series data from indonesia covering the period of 2000 to 2020, this study examines the interrelationships between green financing, carbon intensity, and the utilisation of nonfossil energy sources. this section provides a comprehensive description of the three factors, along with their respective approximations. calculation of the development index for green financing choosing a set of favourable financial measures according to the instructions on establishing a green financing sector published in 2016, the green financial structure comprises four key components: green credit, green sanctuaries, green assurance, and green investment. the classification of the intended layer in this system is based on liu et al.'s (2019) framework for green finance development. accordingly, the criteria layers encompass green credit, green sanctuaries, green insurance, and green investment. subsequently, each layer of criteria is followed by a corresponding layer of indications. the establishment of the four components of green financing is as follows: • green credit the term "green credit" primarily refers to the sector of green deposit and lending, encompassing venture and mortgage lending activities. based on the findings of he et al., (2022) and zhang, xiao, and gao (2018), the authors examined the green credit balance statistics obtained from the document on social obligation of indonesia's finance sector. the study reveals that the state's efforts to establish consistent empirical benchmarks and enhance the capacity of green finance statistics were only initiated in 2014, despite the fact that indonesian banks had already started providing documentation on social responsibility as early as 2006. consequently, indonesia's production of green credit statistics has encountered various issues, such as inconsistencies in disclosure practices, a restricted timeframe for disclosure, and conflicting statistical criteria. consequently, the study proposes utilising the proportion of environmentally friendly loans issued by publicly traded companies as a metric to represent the green credit factor. the aforementioned ratio has been derived by dividing the aggregate green credit generated by publicly traded enterprises with the overall credit generated by said enterprises. the utilisation of such an index would yield several advantages. the provided sample is initially characterised by its broad inclusivity, encompassing a wide range of agbioforum, 25(1), 2023 | 184 kamaluddin — nexus between green finance, renewable energy, and carbon emission: empirical evidence from indonesia subjects, and it also covers an extensive time frame. by the conclusion of the year 2020, the number of registered businesses in indonesia had experienced a substantial rise, reaching a total of 3,549 entities. this represents a notable increase compared to the reported figure of 1,086 firms in the year 2000. the aforementioned enterprises were widely distributed across various sectors and geographic regions within indonesia. furthermore, the provided information appears to be of high quality. it is worth noting that, in accordance with the regulations of the disclosed business system, reputable accounting institutions have thoroughly assessed the data pertaining to the volume and purposes of bank loans offered by registered enterprises in their financial statements. the aforementioned factors contributed to the determination that the utilisation of this index for the research objective appeared suitable. • green securities he et al., (2022) computed the green security index by determining the ratio between the market value of ecological security firms and the total market value of registered corporations. however, there are three flaws that can be identified in this index. the market valuation of corporations listed in indonesia exhibits significant variability. furthermore, it is evident that this index lacks a discernible correlation with green finance, which primarily aims to secure financial resources for the establishment of environmentally sustainable businesses. furthermore, it can be argued that the index fails to provide an accurate representation of the current condition of the indonesian securities market. therefore, recent scholarly investigations reject the measurement methodology utilised by he et al., (2022), opting instead to consider the ratio of energy-saving and environmentally protective firms or initiatives within the sanctuaries industry, along with the total financial value in the securities industry. the overall value of financing in the securities market, as calculated within the index, encompasses various activities such as primary public offerings, further issuances, and the issuance of common and convertible bonds on the stock exchange. • green insurance environmental contamination liability insurance appears to be a recently introduced concept in the indonesian context. as per the findings of jianguo and fanli (2019), the present study utilises agriculture insurance as a means to represent green insurance. agricultural insurance has emerged as a form of insurance that is closely intertwined with the preservation of the natural environment. additionally, it exhibits a plethora of remarkable social attributes, thus rendering the aforementioned strategy widely regarded as suitable (jianguo & fanli, 2019). • green investment the term "green investments" refers to financial allocations made towards initiatives aimed at conserving energy and protecting the environment. the primary focus of this study has been on the public sector. to assess green investment, the ratio of indonesia's fiscal expenditure on environmental preservation and energy conservation to its total fiscal expenditure has been utilised. the selection of this index was influenced by two factors. at first glance, there appears to be a lack of credible data regarding the financial investments made by corporations in the domains of environmental conservation and energy efficiency. furthermore, the aforementioned discussions on green credit finance and green securities primarily focus on the corporate sector, thereby highlighting the impact of private enterprise investment on the field of green finance. the exclusion of corporate area equity investment from the green investment index is necessary in order to accurately assess the influence of government expenditure on the green finance index. synthesis techniques and relevant data for green financial variables the selection of weights plays a critical role in the calculation of a compound index. the main methodologies employed for weight determination include the entropy approach, primary module evaluation, systematic hierarchy method, and expert consultation approach. the predominant method employed in constructing the index of green finance is the amalgamation technique, specifically the weighted synthesis approach. this approach heavily depends on the expert's subjective evaluation to determine the significance of the standard level. however, it is generally preferred to utilise objective weighing techniques as opposed to subjective ones. in this study, the objective entropy weighting technique was chosen over the subjectively weighted approach (shao, li, & zhao, 2019). in order to provide a more accurate representation of the entire magnitude, we also employ the technique of multiplication synthesis (qiu, 1991). the wind dataset, available at https://www.wind.com.cn/en/edb.html, was utilised to obtain data pertaining to green securities, specifically focusing on green credit. in order to address the missing data in the green credit dataset of 2008, an interpolation technique was employed to fill these gaps. the indonesia insurance yearbook was utilised as a primary source of information pertaining to green insurance. the data pertaining to the gross domestic product (gdp), utilisation of nonfossil energy sources, and investments in environmentally sustainable initiatives have been extracted from the indonesia statistical yearbook. data collection and computation of nonfossil energy use an essential approach for attaining energy conservation and reducing emissions appears to involve increasing the utilisation of non-fossil energy sources. hydroelectric power, nuclear power, and wind power are the primary non-fossil fuel sources utilised in indonesia (wang & li, 2019). consequently, this study calculates the proportion of non-fossil energy consumption in indonesia by examining the percentage of total energy consumption attributed to hydroelectric power, nuclear power, and wind energy. the information was derived from the indonesia statistical yearbook (pusat statistik badan, 2019). agbioforum, 25(1), 2023 | 185 kamaluddin — nexus between green finance, renewable energy, and carbon emission: empirical evidence from indonesia indonesian estimates of carbon intensity and emissions the data regarding indonesia's carbon dioxide (co2) emissions has been sourced from the official portal of the international energy agency (iea), an authoritative organisation in this field. the international energy agency (iea) has released a comprehensive report on carbon dioxide (co2) emissions, covering the period from 1999 to 2015. to supplement this dataset, the iea has utilised a regression interpolation method to analyse and estimate the annual co2 emission data for the years 2016 to 2020. the total carbon emissions for the years 2016, 2017, and 2018 were recorded as 9,319.14 mt, 9,749.84 mt, and 10,184.72 mt, respectively. table 3 presents the minimum and maximum values for green financing rates, carbon severity, and the proportion of nonfossil energy usage. additionally, it includes the corresponding observations, means, and standard deviations. figure 1 illustrates the developmental trajectories of three measures in indonesia from 2000 to 2020. table 2. summarises the results for the three primary factors employed in this research: non-fossil energy usage (lnnfe), carbon severity (lnci), and green funding (lngf). factors observations mean std. dev minimum maximum lngf 19 -0.231 0.315 -0.830 0.362 lnci 19 0.072 0.342 -0.499 0.467 lnnfe 19 10.233 0.602 9.016 11.126 note: every factor underwent ln transformations. std. dev represents standard deviation. figure 1. shows indonesia's non-fossil energy usage (mt) trends, carbon severity, and green financing index development from 2000 to 2018. the graph illustrates an increase in the green finance index, which experienced a significant growth of nearly twofold, reaching 0.02214 in 2000 and 0.06321 in 2018. the utilisation of clean energy experienced a significant and consistent increase from 2000 to 2018, exhibiting a more than threefold rise from 10,669.87 mt to 67,933.13 mt. there is evidence of progress in the observed reduction in the magnitude of carbon emissions, which exhibited a gradual decline from 0.02995 to 0.01131 between the years 2000 and 2018, surpassing the halfway mark. evidential research unit root testing the outcomes of the unit root check are presented in table 3. both the adf assessment and pp check, which only considered intercept terms, found that neither of the time series indicators passed the tests at a significance level of 10%. upon considering the temporal trend, it is observed that both the natural logarithm of gross fixed capital formation (lngf) and the natural logarithm of net foreign exchange (lnnfe) successfully pass the unit root test. however, the natural logarithm of consumer inflation (lnci) does not meet the criteria. the stability of the firstorder difference scores dlngf, dlnci, and dlnnfe indicates that the initial sequence appears to have been a singular integral. table 3. shows the results of adf and unit root checks of pp for the significant indicators of green financing (lngf), carbon severity (lnci), but also nonfossil energy usage (lnnfe), as well as firstorder difference rankings for each of the three factors (lngf, lnci, and lnnfe). indicators test of adf test ofpp just constants trends and constants just constants trends and constants lngf -2.158 -4.104** -2.121 -4.100*** lnci 1.479 -3.409** 1.197 -3.566** lnnfe -2.091 -12.898*** -2.412 -14.446*** dlngf -5.502*** -6.364*** -6.152*** -6.060*** dlnci -3.341** -3.392* -3.342** -3.382* dlnnfe -12.043*** -10.488*** -17.753*** -16.186*** notes: each factor underwent an ln transformation. the symbols ***, **, and * denote significance at the 1%, 5%, and 10% levels, respectively. d denotes a difference in the first order. the unit root of presence serves as the null hypothesis for both the adf and pp checks. agbioforum, 25(1), 2023 | 186 kamaluddin — nexus between green finance, renewable energy, and carbon emission: empirical evidence from indonesia test of johansen cointegration prior to conducting the cointegration analysis, lag differences were computed and the resulting values are presented in table 4. all criteria (lr, aic, sbic, and hqic), with the exception of ll and fpe, indicated that the significance of factors increased notably when a thirdorder lag was included. consequently, these three factors have been identified as having a third-order lag. table 4. the three key factors, green financing (lngf), carbon severity (lnci), and nonfossil energy usage, are in the best lag order (lnnfe). lag ll lr df p fpe aic hqic sbic 0 25.8341 9.7e-06 -3.045 -3.046 -2.903 1 68.2142 84.77 9 0.000 1.3e-07 -7.495 -7.502 -6.929 2 82.7696 29.112 9 0.001 6.8e-08 -8.236 -8.247 -7.245 3 112.798 60.059* 9 0.000 7.5e-09 -11.040* -11.055* -9.626 4 9 -6.1e-26* notes: lngf, lnci, and lnnfe indicate the endogenous factors; * denotes the optimum lag order. ll stands for levin lin, lr stands for likelihood ratio, sbic stands for the criterion of schwarz bayesian information, hqic stands for the criterion of hannanquinn information, aic stands for akaike information criterion, and fpe stands for final prediction error. the data has been employed in the co-integration analyses to examine the number of co-integration relationships after determining the optimal lag order. the results are presented in table 5. the presented table indicates that the alternative hypothesis, which posits the existence of at least one cointegration connection, was accepted, while the null hypothesis, which suggests the absence of any cointegration connection, was rejected. the null hypothesis was accepted based on the trace statistic, which tested the hypothesis of "maximum two cointegration connections." the calculated value of 1.1982 was significantly lower than the critical value of 3.76 at a 95 percent confidence level. the results obtained from the johansen cointegration analysis indicate a significant and persistent cointegration relationship among the three factors. the subsequent model presented is a regression model that incorporates long-term cointegration. lnci = 5.0357 (2.7113) − 1.0789lngf (0.6497) − 0.5408lnnfe (0.3752) (2) in equation (2), the standard errors are presented within brackets, indicating that the variables lngf and lnnfe exhibit statistical significance at the 1 percent level. based on equation (2), it can be inferred that a 1 percent increase in the index of green financing development is necessary in order to achieve a corresponding reduction of 1.078 percent in carbon emissions of gdp per unit in the long term. when there is a 1% increase in the proportion of nonfossil energy utilisation, there is a corresponding reduction of approximately 0.54% in carbon emissions per unit of gdp. the correlation between the implementation of green financing and the utilisation of nonfossil energy sources has demonstrated a significant and enduring negative relationship with carbon intensity. this empirical evidence provides a solid foundation for the objective of decreasing carbon emissions per unit of gross domestic product (gdp). table 5. outcomes of the johansen cointegration analysis (lag 3). ranks eigenvalues trace statistics critical values no cointegration connection 75.148 29.69 maximum one cointegration connection 0.973 16.525 15.42 maximum two cointegration connections 0.616 1.198* 3.77 maximum tree cointegration connections 0.072 notes: the symbol * denotes the number of optimum cointegration connections framework for vector error correction the cointegration regression framework is supported by the error correction model (ecm), which was put forth by engle and granger (1987). the vec framework may be created as below, per fan, hu, kong, and zhang (2017) and shao, wang, zhou, and balogh (2019): ∆𝑙𝑛𝐶𝐼𝑖𝑡 = 𝛼1 + ∑ 𝛽11𝑝 𝑟 𝑝=1 ∆𝑙𝑛𝐶𝐼𝑖(𝑡−𝑝) + ∑ 𝛽12𝑝 𝑟 𝑝=1 ∆𝑙𝑛𝐺𝐹𝑖(𝑡−𝑝) + ∑ 𝛽13𝑝 𝑟 𝑝=1 ∆𝑙𝑛𝑁𝐹𝐸𝑖(𝑡−𝑝) + λ𝐼𝐸𝐶𝑇𝑖(𝑡−1) + 𝜀𝑖𝑡 (3) ∆𝑙𝑛𝐺𝐹𝑖𝑡 = 𝛼2 + ∑ 𝛽21𝑝 𝑟 𝑝=1 ∆𝑙𝑛𝐺𝐹𝑖(𝑡−𝑝) + ∑ 𝛽22𝑝 𝑟 𝑝=1 ∆𝑙𝑛𝐶𝐼𝑖(𝑡−𝑝) + ∑ 𝛽23𝑝 𝑟 𝑝=1 ∆𝑙𝑛𝑁𝐹𝐸𝑖(𝑡−𝑝) + λ2𝐸𝐶𝑇𝑖(𝑡−1) + 𝜀𝑖𝑡 (4) ∆𝑙𝑛𝑁𝐹𝐸𝑖𝑡 = 𝛼2 +∑ 𝛽31𝑝 𝑟 𝑝=1 ∆𝑙𝑛𝑁𝐹𝐸𝑖(𝑡−𝑝) + ∑ 𝛽32𝑝 𝑟 𝑝=1 ∆𝑙𝑛𝐶𝐼𝑖(𝑡−𝑝) + ∑ 𝛽33𝑝 𝑟 𝑝=1 ∆𝑙𝑛𝐺𝐹𝑖(𝑡−𝑝) + λ3𝐸𝐶𝑇𝑖(𝑡−1) + 𝜀𝑖𝑡 (5) the initial discrepancies in the aforementioned equations are represented by δlnci_it, δlngf_it, and δlnnfe_it, which serve as indicators of transient variations in the three components. the variable "p" denotes the number of lag orders, while the symbol "β" represents the coefficient used to evaluate the impact of independent factors on the dependent variable over a shorter time period. on the other hand, the symbol "λ" represents the correction coefficient, which determines the speed at which a system transitions from a state of non-equilibrium to long-term equilibrium. the term ect_(i(t-1)) appears to represent the error correction term, which represents the residual component derived from the co-integrating equation. the regression results are presented in table 6. the degree of fit for the vector error correction model (vecm) exceeds 0.75, indicating a strong level of agreement. specifically, the values of 0.9374, 0.9763, and 0.9573 demonstrate a favourable match between the model and the observed data. table 6. shows the models' outcomes for vector error correction 1 2 3 dlngf dlnci dlnnfe ec(t-1) –2.008*** (0.445) 0.021 (0.057) –0.192 (0.118) dlngf(-1) 0.667* (0.395) –0.062 (0.051) –0.127 (0.105) dlngf(-2) 0.495** (0.245) –0.085*** (0.032) –0.087 (0.065) dlnci(-1) –0.257 (1.05) 0.112 (0.135) 0.101 (0.277) dlnci(-2) –4.506*** (0.937) 0.017 (0.120) -0.286 (0.247) dlnnfe(-1) 1.056 (1.155) 0.348** (0.149) –0.590* (0.304) dlnnfe(-2) 1.223** (0.540) 0.174** (0.069) –0.320** (0.143) cons. –0.013 (0.317) –0.179*** (0.042) –0.107 (0.084) 𝑅2 0.938 0.977 0.957 𝐶ℎ𝑖2 104.884 288.008 157.009 agbioforum, 25(1), 2023 | 187 kamaluddin — nexus between green finance, renewable energy, and carbon emission: empirical evidence from indonesia the framework's error correction coefficient (1) exhibits a statistically significant value of 2.008, indicating significance at the 1 percent level. this implies that the rapid expansion of green finance may lead to an economic adjustment that ultimately achieves long-term equilibrium. although the framework coefficient (2) violates the downward correction rule, its statistical insignificance is evident with a coefficient value of 0.021. framework 3 exhibits a coefficient of -0.192, which is deemed statistically insignificant, similar to framework 2. for all relevant independent factors, the first and second lag periods of dlngf in equation 1 are statistically significant at the 10% and 5% levels, respectively. the negative correlation between the second lag of the change in the index (dlnci) and the dependent variable, which is statistically significant at the 1% level, shows that a significant decrease in the green financial development index would result in immediate and significant changes in carbon intensity. furthermore, the coefficient of this correlation is more significant than those of other variables in the model (1). the aforementioned outcome occurred within the framework of a notable increase in carbon intensity, which signifies the swift expansion of energyintensive enterprises that typically possess substantial assets and require significant capital investment to thrive. the provision of financial resources to these types of enterprises may experience a decline as they secure additional funding, potentially leading to a decrease in the green financing development index. furthermore, there appears to be a significant and positive correlation between the initial hysteresis coefficients of dlnnfe and dlngf. the observation that the coefficients of dlngf are consistently lower than those of dlnnfe suggests that intermittent energy sources play a significant role in influencing short-term fluctuations in green financing. in framework 2, there is a significant inverse relationship between the change in ci (dlnci) and the lagged change in gf (dlngf) at a statistically significant level of one percent. this relationship suggests that an increase in green financing can have a substantial impact on reducing co2 emissions per unit of gdp when carbon intensity deviates from its long-term equilibrium position in the short term. the coefficient of the second lag period is higher than that of the primary lag period, indicating a notable and enduring inhibitory effect of green finance. the lag coefficients of the first and second difference of the natural logarithm of non-fossil energy (dlnnfe) exhibit statistical significance and positive values at a 5 percent significance level. this suggests that the utilisation of non-fossil energy displays a strong persistence effect and is relatively easy to enhance in the short term. however, reducing non-fossil energy usage poses a significant challenge. the statistically significant negative impact of the first or second lags of the change in non-fossil energy (dlnnfe) within the third framework, at a significance level of 1 percent, suggests that the growing opposition to fossil fuels is having a noticeable effect. when comparing the coefficients of the factors in the three frameworks, it is observed that the coefficients in framework 2 are generally lower than those in the other two frameworks. this suggests that the other variables have limited influence on carbon severity. promoting a rapid reduction in carbon intensity continues to be a complex endeavour. vecm endurance testing a stabilisation test was conducted on the vec modelling framework in order to examine the effects of impulse responsiveness. the outcomes of a typical root test are illustrated in figure 2. with the exception of the dual-unit roots suggested by the vector error correction model (vecm), all eigenvalues of the entirely adjoint matrix are located within the unit circle. consequently, the framework can be deemed sustainable, enabling the continuation of the research for an impulse response assessment. figure 2. shows the vector error correction framework's discrimination graph for stability analysis. evaluation of impulse responses therefore, by manipulating the three crucial factors, stability can be achieved in both the variance decomposition and the impulse response. the impulse response time was divided into ten stages. the ten stages correspond to a duration of 10 years, as the unit of measurement for the variable is in years. additionally, the impulse response has been analysed within the factor directives of lnci, lngf, and lnnfe. the first column in figure 3 illustrates the impact of these factors on the natural logarithm of gf. the response of the green financing development index to carbon severity exhibits a marginal variation of approximately zero, suggesting that the impact of carbon severity on green financing appears to be negligible. with the exception of stages 1, 5, and 9, the peak value exhibits a variation of approximately 5 percent. furthermore, the influence of lngf in isolation seems to have an overall positive effect. this observation suggests that the logarithm of green financing (lngf) appears to be the primary determinant of its growth. the relationship between the natural logarithm of net foreign assets (lnnfe) and the natural logarithm of gross domestic product (lngdp) exhibits a slight inverse correlation. agbioforum, 25(1), 2023 | 188 kamaluddin — nexus between green finance, renewable energy, and carbon emission: empirical evidence from indonesia the initial column demonstrates the impact of lnci, lnnfe, or lngf on lnci, while noting that lngf's influence continues to be negative. phase two represents the period during which the impact reaches its maximum level. subsequently, a modification occurs in the seventh stage, resulting in a consistent impact of less than 1 percent. the aforementioned findings suggest that the continued development of green financing is of utmost importance in achieving a sustained reduction in the severity of co2 emissions. conversely, the impact of lnnfe on the fluctuation of lnci is minimal. therefore, it can be inferred that indonesia's efforts to expand its non-fossil energy sources are insufficient, and there is still a need to expedite the process of structural energy adjustment. the third column displays the standard deviation of the lnci, lnnfe single-unit, and lngf instinct responses to lnnfe. the amplitudes of the three pulse reactions are substantial. both the natural logarithm of confidence interval (lnci) and the natural logarithm of growth factor (lngf) have a negative impact on the response of the natural logarithm of non-fatal events (lnnfe). the results indicate that variations in carbon intensity and the availability of green financing have a significant impact on the utilisation of non-fossil energy sources. while the variable lnnfe exhibits a positive effect in isolation, its magnitude is notably smaller compared to the other two factors. this suggests that lnnfe possesses limited intrinsic potency and primarily relies on external stimuli for its influence. figure 3. shows the correlations among the percentage of non-fossil energy consumption, the green financing development index, and carbon severity. variance decomposition the variance decomposition follows a similar sequence and lags order as the impulse response. lngf, lnci, and lnnfe's variance decompositions are shown in figures 4, 5, and 6. table 7 displays how much variance decomposition affected the average number of variables in their first, fifth, and tenth stages. compared to alternative elements, green finance has been determined to be most affected by itself (fig. 4). in figure 5, the variance decomposition of lnci has been displayed. beginning with the primary stage, the impact of green financing on carbon severity upsurges quickly and alleviates at or near 60% by the fourth stage. at time 3, carbon severity reaches a maximum addition to the variance decomposition, stabilizing at slightly higher than 20%. the variance decomposition of nonfossil energy partakes a negligible influence. accordingly, structural energy modification has little impact on lowering carbon severity, but green finance has a significant impact. these findings are consistent with the findings of the impulse response evaluation. figure 6 depicts the variance breakdown of the lnnfe. within the first stage, the share of green finance's variance agbioforum, 25(1), 2023 | 189 kamaluddin — nexus between green finance, renewable energy, and carbon emission: empirical evidence from indonesia decomposition rises quickly and stabilizes at about 60 to 70 percent. the use of non-fossil energy increases during the first stage before gradually declining to less than 20%. carbon severity has the most negligible influence but has steadily risen to around 10% over time. figure 4. shows the lngf variance decomposition. figure 5. illustrates the lnci variance decomposition. figure 6. represents the lnnfe variance decomposition. table 7. indicates the variance decomposition's addition to lngf, lnci, and lnnfe phases retort factors percentage variance decomposition contribution lngf lnci lnnfe 1 lngf 99.9 46.84 59.85 5 78.75 69.07 68.85 10 77.29 68.46 74.45 average 87.02 62.79 65.72 1 lnci 0 54.18 0.05 5 11.53 25.82 6.76 10 12.15 22.94 8.08 average 7.23 34.65 3.30 1 lnnfe 0 0 42.14 5 8.75 5.14 27.41 10 9.57 7.63 20.50 average 7.78 5.59 28.02 granger cause analysis the granger causality analysis has been employed for examining granger causality, which defines a causal link dependent on "prediction" between economic indicators. the three factors, dlnci, dlngf, and dlnnfe, have all been autocorrelated and statistically robust at 10 percent within the first difference. following the initial difference from every factor, the granger causality check has been performed. thus, the findings are displayed in table 9. at the 1% significance level, there appears to be clear evidence of two-way causation between dlnci and dlngf, as well as dlnci and dlnnfe. the granger causality analysis for dlngf and dlnnfe has a p-value of 0.094, but at a 10% significance level, there is two-way causation between dlngf and dlnnfe. consequently, it seems clear that green financing does not significantly contribute to promoting new energy. table 8. granger causality check's outcomes including dlnci, dlnnfe, and dlngf equations excluded 𝑪𝒉𝒊𝟐 df prob value>𝑪𝒉𝒊𝟐 dlnci dlngf 69.582 3 0.000 dlnci dlnnfe 12.278 3 0.010 dlnci all 141.45 6 0.000 dlngf dlnci 19.093 3 0.000 dlngf dlnnfe 7.395 3 0.094 dlngf all 37.89 6 0.000 dlnnfe dlnci 27.27 3 0.000 dlnnfe dlngf 9.39 3 0.016 dlnnfe all 30.47 6 0.000 results, policy ramifications, and recommendations for further study results a vecm has been employed throughout the research to statistically assess how nonfossil energy usage and green financing conduce to a decrease in carbon severity in indonesia between 2000 and 2020. using four factors from the 2016 guidelines on constructing a green financial network, green credit, green sanctuaries, green insurance, and green investment, a green financial development index has been created to more accurately depict green financing. we came to the following findings. initially, it had been discovered that there was indeed a significant long equilibrium association between carbon severity, green finance, and nonfossil energy usage, with a decrease in carbon severity correlated with a rise in the index of green financial development and a higher ratio of nonenergy usage. secondly, a rise in carbon severity hampered the growth of nonfossil energy and decreased green financial investment, which caused the green financial development index to fall. thirdly, while the growth of non-fossil energy lacked the self-driving capability and almost always depended on governmental assistance, it remained principally influenced by green financing and carbon severity over the long and short term. fourth, indonesia's green financing strategy significantly impacted carbon reduction, but its results were inconsistent and invariably short-lived. finally, indonesia's carbon severity varies little over time; as a result, lowering it quickly seems to be a difficult challenge. agbioforum, 25(1), 2023 | 190 kamaluddin — nexus between green finance, renewable energy, and carbon emission: empirical evidence from indonesia forthcoming prospects for study and policy ramifications the first strategic inference concerns the requirement for bigger green finance policy sustainability and consistency. as revealed by the research provided, significant variations in green financing have a detrimental impact on carbon severity and the non-fossil energy sector. thus, a critical factor in promoting the mitigation of emissions is the constancy and longevity of the green finance strategy. indonesia's green finance policy framework has to be enhanced; moreover, widespread green financing may guarantee the advancement of conserving energy. additionally, the 13th five-year program marks the earliest to include financing and asks for the creation of a green financial framework and green development funds. as a result, there are three ways that green finance policy might be enhanced. 1) the formal oversight of developing a green financing system has to be enhanced; thus, the appropriate rules and policies need to be implemented. a complete finance service network that consists of green investments, loans, bonds, and securities must be created inside this structure. 2) a grading system for green bonds and securities suitable for indonesia's circumstances must be devised. an authorized third party must confirm that the stocks and bonds are green before issuing them. they must also conduct a scientific study and verify the programs' environmental advantages. additionally, a panel of professionals that comprehend the importance of green investments and may examine as well as keep track of the particular features of such funds utilized to assist the green business should be put together. 3) guidelines, processes, and practices relating to "green credit" should also be enhanced. ordinary people should consistently be recognized and given special mortgages, as well as promoting excellent and appropriate business networks to facilitate green landscaping under energy-saving requirements along with the acquisition of green housing in addition to the latest energy automobiles following national energy-saving credentials for construction. the following strategy supposition involves the prerequisite for improved assistance for green financing in non-fossil energy companies. the cost per unit of nonfossil energy is considerably greater than that of fossil energy, which may be the leading source of the inadequate progress of this kind of energy. as per the long-run cointegration model, the employment of nonfossil choices, like nuclear energy, wind, and solar could successfully cut co2 emissions. non-fossil energy vigors typically comprise substantial investments and protracted payback periods. to embrace green financing goods and services in the growth of nonfossil energy businesses, multipurpose and speckled operating plans need to be established. mainly: 1) to alleviate the financial needs of investigation and authorization and reduce the duration of approvals, assistance for green credit for nonfossil energy schemes must stand reinforced by the supply of low-interest lending. equivalent to this, practical approaches for nonfossil businesses should consistently be executed. examples include fiscal discount interest, tax cuts, furthermore, exclusions, pretax provisions, and voluntarily lousy debt write-offs. 2) the importance of the financial market should indeed be highlighted. there ought to be a considerable number of green businesses developed with non-fossil energy as their primary business to endorse low and medium-board platforms and over-the-counter marketplaces, including sci-tech innovative panel marketplaces for nonfossil energy firms. 3) the entry barrier for something like the non-fossil energy sector into indonesia's financial market has to be decreased. lowering the project income criteria may apply to reviewing and authorizing a corporate securities issue. limitations on the quantity and percentage of the money collected to replenish cash flow or pay off bank debts must be slightly reduced once green companies become registered. the third strategic conclusion would be that the carbon market's position regarding green financing approval should be loosened. utilizing financial derivatives to reduce carbon dioxide and other greenhouse gas emissions seems to be how carbon pricing is implemented in the financial sector. currently, indonesia's carbon market is also not operating at its full potential, and there are misconceptions regarding co2 emission permits and their financial benefits for sectors and businesses. financial policymakers should be leading in establishing a national carbon marketplace. the vigorous growth of a carbon spot market will indeed be facilitated by the efficient financialization of the carbon market. a carbon investment account geared toward the carbon finance market must be developed to strengthen the financial viability of emissiondepletion initiatives. throughout the initial stages of carbon financing, financial institutions may give a more significant security proportion well within the parameters of controlled risks and be urged to incorporate carbon emission obligations in the area of pledging to lend. a green route seeking special permission can also be developed, and financial commodities connected to carbon emission obligations should be developed. carbon securitization solutions should indeed be innovated. carbon assets must be revitalized as well as used more effectively. moreover, carbon exchangers should always be pushed towards developing a full suite of low-carbon derivative financial products for something like a minimal-carbon index framework. minimal-carbon funds and finance leases may be progressively enhanced on the premise of all this. the following are potential subjects for further investigation. 1) the methodology shown in this article to create the green financing index might be modified. few researchers in the field have already created an index like this; that also seems to be a challenging and novel issue. a well-built green financial index might increase the precision of future investigations. 2) more in-depth analysis of the relationship among factors can be assisted by using cutting-edge techniques and instruments. the threshold framework, for instance, might be employed to determine the nexus's breaking points. 3) the area of focus could include a cross-national examination of economies, particularly those with advanced green finance structures. by 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https://doi.org/10.1016/j.jclepro.2018.12.298 agbioforum, 24(2): 96-103 ©2022 agbioforum an examination of the impact of the oil prices and economic determinants on india's economic development haidar ali al dulaimi college of business and economics, university of babylon, iraq email: bus.hayder.ali@uobabylon.edu.iq the economic development of developing nations has been impacted by several factors, including the fluctuation of oil and other commodity prices due to environmental and economic degradation. this issue requires the attention of contemporary researchers and policymakers. consequently, the current study investigates the effect of oil prices and economic determinants such as the wholesale price index, the consumer price index, inflation, and industrialization on the growth of the indian economy. the study utilized the world bank database from 1986 to 2020 to collect secondary data. the researchers used the dynamic auto-regressive distributed lags (dardl) method to examine the relationships between the study's variables. the findings revealed that oil prices, the wholesale price index, the consumer price index, inflation, and industrialization positively affect india's economic growth. this study assists policymakers in formulating economic development policies with the proper emphasis on oil price fluctuations and economic determinants. key words: oil prices, economic determinants, consumer price index, inflation, industrialization, economic development of indian economy. 1. introduction economic growth demonstrates a nation's economic development and capacity to outperform other economies on international markets. current economic growth alone is insufficient to ensure a country's survival on the global stage and future economic prosperity. therefore, focusing on a broader corporate notion such as economic development, is necessary. according to (malecki, 2018), economic development includes economic well-being, geographical development, improvement in living standards through increasing work chances and income level, and quality of life such as health care, education, and other social amenities, among others. by enhancing economic prosperity, economic development increases a nation's ability to compete on the worldwide stage and secures a higher ranking among the world's economies (pradhan et al., 2021). as with economic development, geographical development provides a context, various types of raw materials, and other resources; human capital development by enhancing health, education, capabilities, and social well-being; and an increase in trade. as a result, the country is more likely to endure and succeed over time. therefore, attaining economic development is more beneficial to a country than economic growth and merits discussion among scholars (brekke, 2021). numerous economic aspects and price levels influence the rate of economic development advancement. some drivers are oil prices, the wholesale price index, the consumer price index, inflation, and industrialization. there may be fluctuations in the prices of oil commodities due to the rising demand for oil commodities and their requirements. the oil price is proportional to the earnings and output of oil producers. oil, essential to several economic, home, and social activities, promotes economic growth (q. chen et al., 2020). changes in the wholesale and consumer prices index affect the national standard of living and total output. appropriate changes in the wholesale and consumer price indexes boost a nation's economic growth (hong et al., 2022). inflation refers to a rise in the prices of goods and services and the money supply in a country (blakeslee et al., 2022). during an inflationary period, various economic sectors are extremely active, including manufacturing, finance, services, construction, and tourism. as a result, there is rapid economic growth. industrialization is the spread of industry within a nation and initiates social and economic well-being activities. thus, it contributes to economic progress (mustafakulov, 2020). future contributions from exports of goods may fluctuate as the economies of several of india's trading partners slow down. mr. piyush goyal, minister of consumer affairs, commerce and industry, textiles, food, and public distribution, predicts that by 2030, indian exports will surpass $1 trillion (uzair ali et al., 2022). although the country is achieving economic growth, its rate of progress is modest, and economic prosperity and quality of life are lacking. therefore, the nation must achieve greater economic development. this economic growth in india is the primary focus of the present research. this study examines the impact of oil prices, the wholesale price index, the consumer pricing index, inflation, and industrialization on economic growth. even though various authors have chosen economic development as the focus of their research, the current has its originality. 1) the relationship between oil prices, the wholesale price index, the consumer price index, inflation, and industrialization were examined in the prior literature by authors employing less extensive and dispersed mailto:bus.hayder.ali@uobabylon.edu.iq agbioforum, 24(2), 2022 | 97 dulaimi. — an examination of the impact of the oil prices and economic determinants on india's economic analyses. the present study contributes to the body of knowledge by examining the relationship between these prices and econometric factors for enumerating economic development in greater detail. in contemporary literature, pricing effects on economic development are typically analyzed straightforwardly. here are three surrogates for price levels—oil prices, the wholesale price index, and the consumer price index—to assess their impact on economic growth. thus, it is an addition to the body of knowledge. 3) india is a rising nation with a lower middle income. here, the rate of economic development is slower than in other countries, and the populace must endure a life full of difficulties. however, there is scant research on india's economic development. this study closes a gap in the literature by analyzing india's economic development regarding oil prices, the wholesale price index, the consumer price index, inflation, and industrialization. this study is separated into the following sections: in the second section, previous research on oil prices, the wholesale price index, the consumer price index, inflation, industrialization, and economic growth is examined. the third section discusses the methods used to collect and analyze data for presenting findings. then, the findings, confirmation, conclusion, repercussions, and limitations are discussed. 2. literature review economic development encompasses economic prosperity and quality of life with high living standards, employment opportunities, and health, medical, and educational facilities. progress in achieving economic growth is essential to the social and economic well-being of the populace, as well as to the country's long-term survival and success. mineral commodities such as oil impact economic development, as do varying price index levels and a few economic drivers (nazneen et al., 2018). this study examines the impact of oil prices, the wholesale price index, the consumer price index, inflation, and industrialization on economic growth. numerous studies have examined the complex relationship between oil prices, wholesale price index, consumer price index, inflation, and industrialization and economic progress. in the next section, the relationship between oil prices, wholesale price index, consumer price index, inflation, industrialization, and economic development is examined through a study of the relevant literature. oil commodities are utilized as energy sources, raw materials for various food and non-food products, and finishing materials for numerous things. there may be fluctuations in the prices of oil commodities, and these fluctuations may affect demand and supply. suitable returns on the sale of oil commodities motivate companies that trade in oil and oil products, and a larger supply boosts economic activity. consequently, there is a rise in economic development (jassim, 2021). mo et al. (2019) examine the correlation between crude oil prices and economic growth. the authors used the wavelet-based quantile-on-quantile approach to conduct research surveys in brics economies. the analysis determined an overall positive correlation between oil prices and economic growth. nevertheless, due to varying economic and oil policies, oil prices have heterogeneous effects on the economic development of various nations and periods. miamo et al. (2022) analyze the effects of crude oil prices on economic development in a scholarly article. from 1980 to 2017, panel data on crude oil prices and economic development were collected from 32 sub-saharan african nations. to confirm the nature of the relationship between crude oil price and economic growth, the panel vector autoregression (var) estimate method was utilized. the results indicated that the association between crude oil price and economic development remained positive both in the short and long term. net oil importers have a positive link with economic growth, whereas net oil exporters have a negative relationship with economic growth in the long run. prices for various goods and services vary based on their relative worth, demand, and availability in the economy. the wholesale price index measures the fluctuation in the prices of various items supplied in bulk. the fluctuations in full pricing impact the profit margins of both producers and retailers. profit margin grows as a result of the rise in wholesale pricing. it generates manufacturing activity and commercial practices, resulting in greater economic development (zarnikau et al., 2020). dalimunthe et al. (2019) examine the relationship between inflation and the wholesale price index regarding net asset value and economic growth. from 2011 to 2016, secondary historical data were acquired from the price index and net asset value (nav) released by ojk financial services authority and inflation statistics issued by bank indonesia. regression analysis is utilized to evaluate the relationship. the study hypothesizes that wholesale price positively correlates with asset value and a nation's economic growth. kuvalin et al. (2020) examine the impact of the wholesale pricing index on a nation's economic development. the russian economy was investigated to acquire information on pricing fluctuations and economic growth. the study suggests that the wholesale pricing index has a favorable relationship with economic growth. the rising wholesale prices encourage the production of various products that can be used as tools, instruments, byproducts, raw materials, and energy in other economic sectors. thus, economic progress characterized by growing work possibilities and income levels commence. positive changes in consumer pricing have favorable effects on the economic decisions made by both merchants and producers. it leads to greater economic development in the economy. liang et al. (2020) examine the relationship between the consumer price index, fixed asset investment, and economic growth (using gdp as a measurement). from xinjiang in china, a panel data collection for the consumer price index, fixed asset investment, and gdp for 1990-2016 was obtained. an agbioforum, 24(2), 2022 | 98 dulaimi. — an examination of the impact of the oil prices and economic determinants on india's economic autoregressive vector model was utilized to link the factors mentioned above. according to the research, producer companies' sales revenues rise due to favorable price adjustments for consumers. as a result of revenue growth, the companies intend to apply enhanced manufacturing and marketing techniques successfully. thus, the consumer price index is positively associated with economic growth. prayogo et al. (2020) investigate the effects of the consumer price index, trade openness, international tourism revenues, and physical capital formation on economic development in their study. central bureau of statistics, bank indonesia, world bank, international financial statistics, and the ministry of tourism collaborated to collect data for indonesia's consumer price index, trade openness, international tourism revenues, physical capital formation, and gdp from 1986 to 2015. for empirical analysis, the johansen cointegration test and vecm were utilized. the favorable consumer price index attracts investment from inside and beyond the country. increasing investment introduces innovative, more effective technologies and corporate management. thus, the country's chances of economic progress improve. inflation has a significant impact on economic conditions and contributes to economic progress. through empirical research, amin et al. (2020) study the relationship between inflation, education, energy poverty, employment, and per capita income and economic development. in the research sample, seven south asian nations were included: bangladesh, bhutan, the maldives, india, nepal, and sri lanka. the pertinent data were collected between 1995 and 2017. utilizing an ardl methodology with llc, fadf, fpp, and ips unit root testing and pedroni and johansen–fisher (jf) panel co-integration tests. the data indicate that inflation contributes favorably to economic growth by increasing production activities. huseynli (2022) explores the impact of inflation and international tourism income on economic development in his study. the multiple linear regression model was used to examine the variables' relationship. using world bank indicators, information on inflation, international tourism receipts, and gdp was obtained from morocco and south africa. the vif test, the breusch-godfrey lm test, and the shapiro-wilk w test were utilized. the study suggests a tendency to innovate and add value to various technologies employed for commercial goals. therefore, economic growth is anticipated to increase. khan et al. (2020) investigate the relationship between inflation, institutional quality, and economic growth. utilized were the unique threshold model and system gmm approach. from 1981 through 2015, information from 113 nations was analyzed. the findings revealed a favorable correlation between inflation and economic growth. countries are experiencing an inflationary period experience technical improvement, infrastructure growth, and financial expansion, all of which contribute to greater economic development. when industry dominates in a nation, there is a significant increase in physical capital and infrastructure development. it will result in economic prosperity and quality of life for the people. so it stimulates economic development (x. chen et al., 2020). lee et al. (2020) list the connection between industrialization, industrial policies, and economic growth. the current study is based on a literature review and statistical data from the 1990s to the 2010s from kyrgyzstan. the research indicates that the country's industrialization and industrial policies promote the mining, agricultural, renewable energy, textile, and agro-processing industries. while these sectors are being pushed, economic development can foster sustainability. the literary exercise of opoku et al. (2019) was an examination of industrialization as a driver of economic growth. the authors utilized industrialization and economic development data from thirty-seven african nations between 1980 and 2014. the gmm estimation method examined the connection between industrialization and economic growth. the research indicates that industrialization substantially affects economic development by facilitating human life and offering economic opportunities for individuals. wang et al. (2022) did a study to combine the relationship between industrialization, trade openness, renewable energy, and technological progress. the stirpat model was applied, and information on the relevant factors for 1990-2020 was collected from g7 countries. increasing industrialization enhances the economic activity and, as a result, increases economic development, according to the research. 3. research methods the study investigates the effects of oil prices, the wholesale price index, the consumer price index, inflation, and industrialization on the growth of the indian economy. the study utilized the world bank database from 1986 to 2020 to collect secondary data. the article developed the equation with the following understudy constructs: 𝐸𝐷𝑡 = 𝛼0 + 𝛽1𝑂𝑃𝑡 + 𝛽2𝑊𝑆𝑃𝐼𝑡 + 𝛽3𝐶𝑃𝐼𝑡 + 𝛽4𝐼𝑁𝐹𝑡 + 𝛽5𝐼𝑁𝐷𝑡 + 𝑒𝑡 (1) where; ed = economic development t = period op = oil prices wspi = wholesale price index cpi = consumer price index inf = inflation ind = industrialization the article uses gdp growth (annual %) as the dependent variable to measure economic development. in addition, the article utilized oil prices and four economic factors as predictors. oil prices are measured by oil rents (percent of gdp). at the same time, economic determinants include the wholesale price index, consumer price index, inflation measured by consumer prices (annual percent), and industrialization measured by industry value added agbioforum, 24(2), 2022 | 99 dulaimi. — an examination of the impact of the oil prices and economic determinants on india's economic (percent of gdp). these variables and measures are highlighted in table 1. table 1: variables with measurements s# variables measurement sources 01 economic development gdp growth (annual %) wdi 02 oil prices oil rents (% of gdp) wdi 03 wholesale price index wholesale price index (2010 = 100) wdi 04 consumer price index consumer price index (2010 = 100) wdi 05 inflation inflation, consumer prices (annual %) wdi 06 industrialization industry value added (% of gdp) wdi the researchers employed descriptive statistics to provide details about the constructs. in addition, the researchers utilized the correlation matrix, which displays the correlation between constructs. in addition, the researchers utilized the phillips-perron (pp) and augmented dickeyfuller (adf) tests to investigate the unit root among constructs. the equation is given as follows: 𝑑(𝑌𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑌𝑡−1 + 𝑑(𝑌𝑡(−1)) + ɛ𝑡 (2) the researchers also run the (westerlund et al., 2008) approach that provides the co-integration in the model. the equations are mentioned below: lmφ(i) = tφ̂i (r̂i/σ̂i ) (3) lmτ(i) = φ̂i/se(φ̂i) (4) in the above-given equations, scalar polynomial with l lag length denoted by 𝜑𝑖 (𝐿) = 1 − ∑ 𝜑𝑖𝑗𝐿𝑗 besides standard error denoted by �̂�𝒊, long-run measured variance is denoted by �̂�2 𝑖, and factor loading parameters vector i is denoted by ρi. the researchers used the dardl method to examine the relationships between the study's variables. jordan and philips (2018) establish this method, which can overcome the shortcomings of ardl. this method is appropriate when co-integration exists, or some variables have no unit root at i (0) and others have no unit root at i (1). finally, 5000 simulations were performed on the parameters vector for the dardl simulations model. the equation is given as follows: ∆𝐸𝐷𝑡 = 𝛼0 + ∑𝛿1∆𝐸𝐷𝑡−1 + ∑𝛿2∆𝑂𝑃𝑡 + ∑𝛿3∆𝑂𝑃𝑡−1 + ∑𝛿4∆𝑊𝑆𝑃𝐼𝑡 + ∑𝛿5∆𝑊𝑆𝑃𝐼𝑡−1 + ∑𝛿6∆𝐶𝑃𝐼𝑡 + ∑𝛿7∆𝐶𝑃𝐼𝑡−1 + ∑𝛿8∆𝐼𝑁𝐹𝑡 + ∑𝛿9∆𝐼𝑁𝐹𝑡−1 + ∑𝛿10∆𝐼𝑁𝐷𝑡 + ∑𝛿11∆𝐼𝑁𝐷𝑡−1 + ɛ𝑡 (5) 4. findings of the study the researchers employed descriptive statistics to provide details about the constructs. the results revealed that the mean value for ed was 5.842 percent, while the mean value for op was 0.925 percent and the mean value for wspi was 74.543 percent. in addition, the output revealed that the cpi median value was reported at 77.066%, while the inf median value was 7.409%, and the ind median value was 27.86%. table 2 emphasizes these numbers. table 2: descriptive statistics variable obs mean std. dev. min max ed 35 5.842 2.897 -6.596 9.628 op 35 0.925 0.377 0.235 1.741 wspi 35 74.543 38.35 20.570 135.816 cpi 35 77.066 50.989 16.527 182.989 inf 35 7.409 3.017 3.328 13.870 ind 35 27.860 1.732 24.531 31.137 in addition, the researchers utilized the correlation matrix, which displays the correlation between constructs. the findings revealed that oil prices, the wholesale price index, the consumer price index, inflation, and industrialization benefit india's economic growth. this is highlighted in table 3. table 3: correlations matrix variables ed op wspi cpi inf ind ed 1.000 op 0.061 1.000 wspi 0.078 0.434 1.000 cpi 0.157 -0.541 0.980 1.000 inf 0.064 0.224 -0.338 -0.362 1.000 ind 0.413 0.543 0.060 -0.111 0.220 1.000 in addition, the researchers employ the pp test and adf test to investigate the unit root among constructs. ed, wspi, and ind have no unit root at level, whereas op, cpi, and inf have no unit root at first difference. this is highlighted in table 4. in addition, the researchers employ the (westerlund et al., 2008) co-integration model approach. the output also revealed that the p-values and t-values are less than 0.05 and 1.96, respectively. these values indicated the existence of co-integration. this is highlighted in table 5. the researchers employed the dardl method to examine the correlations between the study's variables. the findings revealed that oil prices, the wholesale price index, the consumer price index, inflation, and industrialization positively affect india's economic growth. table 6 illustrates these relationships. agbioforum, 24(2), 2022 | 100 dulaimi. — an examination of the impact of the oil prices and economic determinants on india's economic table 4: unit root test adf pp series level first difference level first difference ed -3.201*** ------2.291*** ----- op ------6.392*** -----5.192 wspi -2.637** -----3.918*** ----- cpi ------5.944*** ------5.373*** inf ------5.928*** ------4.436*** ind -3.519*** ------2.562*** ----- table 6: dynamic ardl model variable coefficient t-statistic prob. ect -2.892*** 4.901 0.000 𝑂𝑃𝑡−1 3.764*** 4.892 0.000 op 2.291** 2.201 0.031 𝑊𝑆𝑃𝐼𝑡−1 1.092*** 4.871 0.000 wspi 0.931*** 5.774 0.000 𝐶𝑃𝐼𝑡−1 0.271** 2.747 0.019 cpi 1.331** 2.182 0.042 𝐼𝑁𝐹𝑡−1 0.893** 2.117 0.044 inf 0.801** 2.273 0.038 𝐼𝑁𝐷𝑡−1 2.471*** 5.564 0.000 ind 3.901*** 4.662 0.000 cons 3.998*** 5.219 0.000 r square = 61.783 stimulation = 5000 5. discussions the results demonstrated that oil prices positively correlate with economic growth. these findings are consistent with atil et al. (2020)'s assertion that when oil prices are continually growing in a country, there is a greater demand for oil commodities to meet energy and raw material needs. it signifies increased economic productivity and an upward trend in economic development. these findings are further corroborated by abaas et al. (2018). they demonstrate that if there is an upward trend in oil commodity prices, there is an increase in demand for oil commodities. the higher prices result in greater profitability for producers. it increases the productivity of oil commodities and contributes to economic growth. the results demonstrated a favorable link between the wholesale pricing index and economic growth. these findings are consistent with praburaj et al. (2018), who found that increasing the wholesale prices of products and services commodities results in increased profits for manufacturers and producers of the goods. the desire for greater revenues motivates them to expand the business and enhance productivity. therefore, a rise in the wholesale price index stimulates economic growth. these results are also corroborated by joskow (2019), which indicates that if the wholesale price index rises, there is a propensity for the production of certain items to increase. for this reason, technological processes, production resources, and country infrastructure are improved. therefore, the wholesale pricing index promotes economic growth. the results indicated that the consumer price index positively relates to economic growth. these findings are consistent with mhd ruslan et al. (2020)'s assertion that a positive adjustment in the consumer price index for the year could satisfy customer needs and enhance their quality of life. these outcomes align with those of kassi et al. (2019). according to a recent study, the positive shift in consumer pricing increases producer firms' sales-related profitability. with increased profits, businesses improve their production and marketing strategies and attempt to implement them successfully. the results indicated a positive relationship between inflation and economic growth. according to roncaglia de carvalho et al. (2018), when there is an inflationary situation in the nation, there is a struggle for innovation, value addition, and improvement in various economic departments. thus, inflation promotes economic growth. these results are also supported by uddin et al. (2022), who assert that technological and infrastructure development is at its peak during an inflationary period. it ensures the sustainability of economic development by enhancing its ecological aspects. the findings revealed a positive relationship between industrialization and economic development. these findings are consistent with sarkodie et al. (2020)'s assertion that industrialization is associated with economic growth and human welfare in various spheres. when industrialization increases, the economic growth rate is high, and human lives improve. this contributes to economic development improvement. zhao et al. (2018) also support these findings, and zhao et al. (2018) suggests that an increase in industrialization stimulates economic activity, creates jobs, and leads to the production of goods and services within a country. therefore, economic development is increasing. 6. implications due to its contribution to the body of knowledge, the study is an important guide for researchers. this study investigates the effects of oil prices, the wholesale price index, the consumer price index, inflation, and agbioforum, 24(2), 2022 | 101 dulaimi. — an examination of the impact of the oil prices and economic determinants on india's economic industrialization on economic growth. this is a literary contribution of the study that, for the first time, concurrently investigates the effects of oil prices and economic factors on economic growth. the study also distinguishes the impact of oil prices, the wholesale price index, the consumer price index, inflation, and industrialization on india's economic growth. because it addresses economic development, the new study is relevant for growing economies such as india. this study examines how a nation can attain economic development. with the government's support, the study suggests that economists must implement policies to properly manage oil prices within the country so that they do not negatively impact the economy but instead contribute to long-term economic growth. in addition, policymakers are urged that the wholesale pricing index must be successfully handled to produce more economic growth. similarly, officials must attempt to regulate the wholesale pricing index effectively to enhance economic development. this study assists policymakers in formulating economic development policies with the right emphasis on oil price fluctuations and economic factors. the research suggests that policymakers should permit a favorable inflationary era to ensure sustained economic growth. to sustain economic growth, industrialization must be promoted and expanded, according to the current study. 7. conclusion the study aimed to investigate the effects of oil prices, the wholesale price index, the consumer price index, inflation, and industrialization on economic growth. the authors traveled to the indian economy to collect empirical quantitative data on oil prices, wholesale price index, consumer price index, inflation, industrialization, and economic development. the results revealed a correlation between oil prices, the wholesale price index, the consumer price index, inflation, industrialization, and economic growth. the results demonstrated that if there is an upward trend in oil commodity prices, the resulting increase in sales profits leads to increased production and marketing processes within the country, resulting in greater economic growth. the results indicated a tendency to increase production if wholesale prices rise. it results in the enhancement of economic and social processes, which promotes economic growth. similarly, a favorable consumer price index boosts production, trade, employment, and infrastructure development, leading to economic growth. the results demonstrated that during an inflationary period, technological and infrastructure development, a high production level, and a rise in social welfare. therefore, economic development increases. in addition, the study found that industrialization increases employment in multiple economic sectors and improves human welfare. therefore, it leads to sustainable economic growth. 8. limitations there are still some limitations associated with this research. in future work, these constraints can be overcome. for evaluating economic development, the study focuses on a limited number of factors, including oil prices, the wholesale price index, the consumer price index, inflation, and industrialization. additional factors impact economic development, but the authors have not considered these. in future work, the authors can expand the scope of the study by analyzing additional variables. in addition, the generalizability of the study's findings for the sole examination of the indian economy is inadequate. future researchers will ensure the generalizability of their findings by conducting research in multiple nations. references abaas, m. s. m., chygryn, o., kubatko, o., & pimonenko, t. 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spilarcm@hotmail.com jose omar garcía tarazona universidad nacional de educación enrique guzmán y valle email: jgarciat@une.edu.pe sonia alejandrina sotelo muñoz universidad científica del sur. email: ssotelo@cientifica.edu.pe jesus enrique reyes acevedo universidad nacional autónoma de alto amazonas email: jreyes@unaaa.edu.pe jose daniel sanchez fernandez universidad católica de santa maría email: jose.sanchezf@ucsm.edu.pe isaac merino quispe universidad nacional jose maria arguedas email: merinoq501@gmail.com josé luis arias-gonzáles pontificia universidad católica del perú email: joseariasgon6@gmail.com roxana yolanda castillo-acobo universidad nacional de san agustín email: rcastilloa@unsa.edu.pe milagros del rosario cáceres-chávez camosun college email: milagros_c1@hotmail.com nowadays, the value of innovation, green behavior, and entrepreneurship have grown, which is essential for a country's sustainable development. however, there has been no in-depth study of what the ecosystem should be to promote entrepreneurship and, thus, care for the environment. for this reason, this study aims to explore the entrepreneurial ecosystem's effect on peruvian university students' entrepreneurial personality and green entrepreneurship. this study uses a duly validated instrument that includes the three variables divided by dimensions and was applied to a population of university students in peru. using a simple random sampling technique, the data were collected from 384 students of peruvian universities. this study used the smart-pls to examine the reliability of the data and the correlation of the dimensions and items of the variables. in conclusion, providing entrepreneurship tools can help students develop desirable personality traits to generate sustainable businesses. the job of universities is to improve education for sustainable development. this means that students should learn the skills and knowledge they need to use environmental practices in their businesses. keywords: entrepreneurial ecosystem, green entrepreneurship, entrepreneurial personality, green businesses, entrepreneurial intention, university entrepreneurship. 1. introduction new businesses, start-ups, and entrepreneurs today contribute to the economy's growth. therefore, the additional value would be considerably higher if these businesses were to become high-growth enterprises. in addition, the local entrepreneur is essential to obtaining this type of success. for example, an entrepreneur's likelihood of success increases with the preparation and alignment of business and personal goals and skills. more and more countries are becoming more entrepreneurial societies and fostering an entrepreneurial ecosystem. entrepreneurial education, entrepreneurial workers, and future entrepreneurs pursuing entrepreneurial endeavors independently. in addition, the value of rewarding innovation, green behavior, and entrepreneurship has grown. universities must foster an entrepreneurial ecosystem so future professionals can take charge of businesses responsibly. conceptually, the entrepreneurial ecosystem refers to the interconnected set of factors necessary for the growth of a mailto:ewpacori@gmail.com mailto:jorge.cruz@uwiener.edu.pe mailto:spilarcm@hotmail.com mailto:jgarciat@une.edu.pe mailto:ssotelo@cientifica.edu.pe mailto:jreyes@unaaa.edu.pe mailto:jose.sanchezf@ucsm.edu.pe mailto:merinoq501@gmail.com mailto:joseariasgon6@gmail.com mailto:maypsi@yahoo.com.ar mailto:milagros_c1@hotmail.com agbioforum, 24(3), 2022 | 44 paricahua, padilla, madrid, tarazona, muñoz, acevedo, fernandez, quispe, gonzáles, gallegos and chávez. — the mediating role of… successful start-up. it describes the conditions that encourage or discourage a person from taking the entrepreneurial step. the market, policies, financial capital, culture, support, and human capital are just some of the many components that make up this ecosystem (malecki, 2011). the entrepreneurial ecosystem studies the interdependencies between individuals, governments, and related institutions, as well as other variables beneficial to the promotion of activity determined by entrepreneurship (ben hassen, 2020; miller et al., 2017). the entrepreneurial ecosystem requires a wide range of skills and the entrepreneur's attitudes (woodcock et al., 2019). entrepreneurial skills are essential to create new products and services, identifying unmet market needs, and expanding existing ones (ismail et al., 2019). the younger generation needs to know how to cope in complex situations with changing constraints in the labor market, so they argue that universities should design various initiatives to foster entrepreneurship among their graduates (moosivand et al., 2017). for miller et al. (2017) and tripathy (2019), entrepreneurs must have certain entrepreneurial skills, such as the ability to plan, the right use of possibilities, negotiation skills, marketing skills, the ability to inspire and motivate others, etc. similarly, reyad et al. (2019) identified six entrepreneurial talents, including business plan expertise, communication, familiarity with legal and business rules and regulations, and planning, in addition to team building and marketing (mayanja et al., 2021). other studies suggest that people with high levels of social intelligence and emotional intelligence are more likely to be entrepreneurs because they are better able to deal with the stress and negative emotions that arise from starting a business and running it successfully (alizade aghdam et al., 2016; dizji et al., 2018; zarei sebhati, 2016). these individuals tend to view problems positively, seek solutions, and have high hopes for the future of their business. the ability to interact and collaborate with others, to be aware of social concerns, and to find a middle ground all have a direct relationship with an individual's social intelligence, which influences entrepreneurial behaviour and activities (azma, 2020; rezaei, 2017). in recent studies, it has been established that for a country to develop, entrepreneurs must act with the environment in mind. every year, new environmental concerns and questions about how to handle them arise in many different sectors of society, including the economic, social, cultural, and political spheres (zarate-hoyos, 2022). several efforts have been made to connect economic enterprises with environmental concerns to address these problems. studies have evidenced a strong relationship between interest in green entrepreneurship and the understanding of educational views achieved in green business and entrepreneurship. students' interest in developing green businesses is positively correlated with their exposure to entrepreneurship education and their level of environmental knowledge (jiang et al., 2020). students' interest in starting green businesses is linked to how much they learn about business and how much they know about the environment (anghel et al., 2022). despite widespread agreement on the importance of fostering an innovative and green economy, most nations have yet to take the necessary steps. this is often attributed to the lack of a good entrepreneurial ecosystem, confusing entrepreneurial policies, and an unwillingness to adapt to the growing prominence of entrepreneurs in modern society (guerrero et al., 2020). to progress, society and universities must provide the necessary context for students to acquire entrepreneurial knowledge, which they can then use to direct other societal resources toward value creation, growth, and sustainable development of the country (karimi et al., 2022; lyons et al., 2020). in peru, entrepreneurship and the growth of small and medium-sized enterprises (smes) have not advanced to a satisfactory level, despite significant efforts in recent years (arias gonzáles et al., 2022). changing government policies, arbitrary policy implementation, an unfavorable business environment, insecurity among government managers and employees, inappropriate and unfavorable regulations, a lack of trust in the environment, a lack of business infrastructure, problematic markets, high-interest rates on bank loans, and other factors all contribute to an unfavorable business environment (mamani et al., 2022). the entrepreneurial ecosystem, skill formation, and the intention of green entrepreneurship are reinforced by university education. education focused on building skills for green entrepreneurship is necessary for long-term prosperity (muñoz et al., 2022). therefore, this research aims to explore the entrepreneurial ecosystem's effect on peruvian university students' entrepreneurial personality and green entrepreneurship. 2. literature review 2.1 green entrepreneurship the term "entrepreneurship" refers to a business model implemented by either people or businesses (muo et al., 2019). additional ideas are required for environmentally responsible business practices. as a result, trapp et al. (2021) offered a description of who believes that developing innovations connected to sustainability, with an emphasis on promoting the green economy among clients, is an example of green entrepreneurship. although green entrepreneurship is intended to help entrepreneurs, they frequently have trouble determining whether or not a particular endeavor is environmentally friendly; consequently, the research findings are used to define such endeavors to better explain them to business owners (trapp et al., 2021). as a result, we may claim that green entrepreneurship involves tackling environmental challenges and has a positive influence, such as utilizing eco-friendly inputs, clean manufacturing processes, waste management, and recycling, to name a few of the practices mentioned above (boni, 2022). to put it another way, we don't just talk about ecological agbioforum, 24(3), 2022 | 45 paricahua, padilla, madrid, tarazona, muñoz, acevedo, fernandez, quispe, gonzáles, gallegos and chávez. — the mediating role of… entrepreneurship as an aim of environmental care; we also talk about the approval of suppliers, the acquisition of resources, and clean procedures. despite this, the definitions will likely be a topic of investigation and discussion for some time. this study considers university students' desire to establish environmentally conscious business practices (tien et al., 2020). the idea of "green entrepreneurship" is connected to and incorporates several other analogous concepts that have been uncovered in the research, such as "biosphere entrepreneurship" and "eco-friendly entrepreneurship." beyond commercial and social entrepreneurship, which add value to the business processes and social spheres, biosphere entrepreneurship adds value to earth, limiting the negative effects of climate change (global warming and sea level rise). eco-friendly entrepreneurship is very sensitive to environmental deterioration (deforestation) and planet overexploitation (overuse of natural resources and reserves). commercial and social entrepreneurship adds value to the business processes and social spheres, respectively (dodd et al., 2021). human civilization is in danger due to climate change; therefore, nations must conserve natural resources, essential input factors for economic production activities. regeneration and preservation of natural resources should be the primary priority of policymakers to ensure the continued viability of livelihoods in the global economy (hickel et al., 2020). stakeholders exert pressure on businesses to engage in more environmentally friendly behaviors in opposition to the traditional assumptions of the conventional market and economic growth when the environment's state continues to deteriorate due to the negative impact of business activities (mason et al., 2022). on the other hand, they support green growth and sustainability issues identified in the economy with ecological values, social justice, and spatial decentralization (cao et al., 2021). a tremendous and growing amount of pressure is being put on businesses to incorporate environmentally responsible business practices into their operations and supply chain endeavors (sandberg et al., 2019). the de-carbonization and deintensification of economic activity will be the most sustainable method to ensure the rise of green economies. to achieve sustainable economic growth, appropriate long-term policy measures must be implemented (fernando et al., 2019). green economic growth connects the economy to its ecological underpinnings; hence, it is essential to identify different orientations toward economic growth to cover various facets of socioeconomic development in light of this fact (d’alessandro et al., 2020). both academic research and real-world investigations are devoted to green initiatives in national development strategies and policy measures adopted by developed and developing countries. policymakers may pursue various courses of action based on factors such as the level of development in the nation, its institutions' capabilities, the government's instructions, and the resources at their disposal (savin et al., 2021). inconsistencies in the implementation capabilities and inconsistencies in environmental policy would lead to limited success in maintaining the sustainability of green performance (tilsted et al., 2021). thankfully, green entrepreneurs and the green businesses they launch have the potential to play critical roles in ensuring the long-term viability of our green economy. however, regulatory inconsistencies and bureaucratic red tape in the business environment make it difficult for environmentally conscious businesses to operate efficiently and, as a result, limit their expansion potential (xie et al., 2018). as a result, political entities and policymakers should search for ways to promote and foster environmentally friendly entrepreneurship (trapp et al., 2021). in the meantime, business policies and procedures that consider environmental factors can serve as the foundation for acquiring and developing a sustainable competitive advantage. while proactive and green value-seeking approaches have been suggested in management literature, very few theoretical frameworks have been presented so far in the green supply chain operations to give a big picture of all-out green efforts in the economy (lotfi et al., 2018). while proactive and green value-seeking approaches have been suggested in management literature, very few theoretical frameworks have been presented in the domain of green supply chain operations. management of a supply chain that is environmentally friendly is becoming increasingly important for companies to implement to ensure their continued existence and success in the global economy. it is a relatively new approach to management that emphasizes the importance of minimizing a company's negative influence on the environment while also maximizing its effective use of natural resources (dodd et al., 2021). 2.2 entrepreneurial personality the areas of interest in the literature on this topic have been entrepreneurial activity and the psychological, socioeducational, and relational variables involved in its processes (herman, 2019). this has been done to discover which elements influence entrepreneurial initiatives (do et al., 2020). one of the conclusions relates to the multifaceted nature of entrepreneurship, which can be defined as the production of concepts, businesses, and patents, in addition to the administration of their formative stages (garaika et al., 2019). the theory of planned behavior (zaremohzzabieh et al., 2019) notes that the process before action is when entrepreneurial intention and interest, as well as their influential variables, assume relevance in explaining two inter-related processes (the discovery of opportunities and their exploitation), which leads to the subsequent entrepreneurial activity (pejic bach et al., 2018). this is the stage at which entrepreneurial intention and interest, as well as their influential variables, come into play. before we go any further, we feel it is necessary to explain the concept of opportunities more thoroughly. agbioforum, 24(3), 2022 | 46 paricahua, padilla, madrid, tarazona, muñoz, acevedo, fernandez, quispe, gonzáles, gallegos and chávez. — the mediating role of… opportunities are essential for entrepreneurial endeavors (yasir et al., 2020). because of this, entrepreneurship has been conceived as the process through which people (either on their own or within organizations) hunt for opportunities (do et al., 2020). harms et al. (2019) already established that entrepreneurship is a behavior based on opportunities. they also established that the entrepreneurial act focuses primarily on how, by whom, and with what effects opportunities are discovered, evaluated, and exploited to create goods and future services (hoang et al., 2022). opportunities were characterized by botha et al. (2021) as instances in which new commodities, services, raw resources, and organization methods have the potential to be launched and sold at a cost that is higher than their production cost (vodă et al., 2019). while the opportunity is essential to studying entrepreneurship and its actual practice, it is still quite a nebulous concept. similarly, the dynamics of opportunity perception, selection, and seizing are conceptually vague and experimentally challenging to pin down (al-harasi et al., 2021). according to garaika et al. (2019), academic disputes about the nature of opportunities have probably hampered the development of theoretical frameworks, testing, and empirical study. several researchers (do et al., 2020; vodă et al., 2019) have analyzed the characteristics of entrepreneurial chances, including their ontological and epistemological standings. the question at the center of the discussion is whether opportunities arise due to endogenous enactments or exogenous market gaps (pejic bach et al., 2018). according to garaika et al. (2019), at least three distinct points of view can be distinguished within the opportunity argument. the first viewpoint, the discovery perspective, contends that opportunities are genuine prospects for profit and external entities. these opportunities to make a profit arise from defects in the market, which individuals can identify. people might see these chances for financial gain because they are more perceptive, possess superior cognitive skills, or actively search (yasir et al., 2020). the second perspective, known as the creation view, contends that opportunities are social constructions brought into existence by the individual initiative of businesspeople. according to this point of view, opportunities can be traced back to entrepreneurial cognitions that can then be objectified by the entrepreneur (al-harasi et al., 2021). if an entrepreneur does not possess the requisite skills and competencies, or if they are unfortunate, their endeavor to launch a new product or service to the market may be unsuccessful. however, business owners can still achieve success even in the absence of a distinct market by cultivating demand for the products or services they provide (herman, 2019). the third viewpoint, known as the actualization perspective, views opportunities regarding their tendencies. opportunities indeed exist, but objectively, it is impossible to measure or recognise them in any meaningful way. only via the use of their imaginations or beliefs, both of which are highly personal, can business owners reach them. therefore, opportunities are real entities; nevertheless, one cannot know what they are until after they have been converted into profits (botha et al., 2021). according to do et al. (2020) concept of entrepreneurial intentionality, to organize entrepreneurial intention, a mix of personality traits and contextual elements is required (osiri et al., 2019). it is frequently hypothesized that personality construct is a key predictor of the propensity to engage in entrepreneurial activity (al-harasi et al., 2021). it is common practice in entrepreneurial research to consider an individual's personality (yan et al., 2018). on the other hand, while attempting to describe the connection between nature and the ambition to start a business, the framework of the big five personality traits is typically utilized. recent research by ahmed et al. (2021) demonstrated that narrow traits are more accurate predictors of entrepreneurial results. these traits matched the relevant knowledge, skills, and entrepreneurship abilities. because entrepreneurial outcomes place a greater emphasis on opportunities than threats (herman, 2019), several traits have been identified as among the most important ones to begin engaging in entrepreneurial activities. these traits include opportunity recognition, exploitation, innovation, and value creation (botha et al., 2021). quantify of entrepreneurial tendencies and abilities (meta) was developed based on this concept to measure entrepreneurial opportunism (eo), entrepreneurial proactivity (ea), entrepreneurial vision (ev), and entrepreneurial creativity (ec) (obschonka et al., 2017). according to the research conducted by gatto (2020), all four dimensions loaded onto a latent meta total factor, which was discovered to predict total entrepreneurial activity. total entrepreneurial activity is a composite of several entrepreneurial success outcomes. 2.3 entrepreneurial ecosystem although previous research has already described how the interaction between entrepreneurs and other contextual elements/actors may create the conditions for the longterm success of an entrepreneurial venture (cavallo et al., 2019), the entrepreneurial ecosystem (ee) concept gained momentum through the pioneering studies of cavallo et al. (2019) and stam et al. (2021). their works helped to promote the idea among successful businesspeople and influential legislators that the community and culture of a given location may substantially impact the entrepreneurial activity that takes place in that location (wurth et al., 2022). in another turn of events, the everincreasing popularity of this concept led academics to investigate ee. empirical studies concentrated on how a robust ee fosters entrepreneurial activity and, as a result, value production at the regional level (ratten, 2020). this was accomplished by identifying a country with a strong ee and then comparing it to other countries with similar levels of innovative entrepreneurship. in addition to these important contributions, (elnadi et al., agbioforum, 24(3), 2022 | 47 paricahua, padilla, madrid, tarazona, muñoz, acevedo, fernandez, quispe, gonzáles, gallegos and chávez. — the mediating role of… 2021) argued that seductive. however, the entrepreneurial ecosystem concept may be, much about it is problematic. the rush to employ the entrepreneurial ecosystem approach has run ahead of answering many fundamental conceptual, theoretical, and empirical questions. this call to action was well accepted and communicated across the academic community. as a result, further research on entrepreneurial ecosystems has been expressly addressed at several international conferences and in several special issues. as a consequence, we have noted several recent contributions that are quite valuable regarding the subject of ee. for example, kuckertz (2019) has illustrated the paradox of new venture legitimation within ees, and has examined the roots of ee in terms of its antecedents in literature. kuckertz (2019) has illustrated the paradox of new venture legitimation within ees. an integrated framework of the digital entrepreneurial ecosystem has been proposed by hannigan et al. (2021). this ecosystem comprises highly innovative entrepreneurs who create digital companies and innovative products and services for many users and agents in the global economy (kuckertz, 2019). to summarise, a significant amount of focus has been placed on defining the ee and its main characteristics (ratten, 2020), even though the discussion is still in progress and there is an opportunity for additional contributions. concerns are being voiced, for example, regarding the origins of the antecedents of the ee literature, which may be found in the literature on strategy, entrepreneurship, and regional development (wurth et al., 2022). in addition, academics are currently debating how to quantify the entrepreneurial ecosystem and acquire an all-encompassing comprehension of the subject matter. similarly, policymakers are trying to identify the important action points and support the essential measures to establish and nurture entrepreneurship. this is due to the large diversity of actors involved in the entrepreneurial process (elnadi et al., 2021). we have conducted a critical review of the literature on ees. we are presenting here a set of original guidelines to advance the current understanding of entrepreneurial ecosystems in response to the topic's extremely theoretical and practical relevance. this was done in response to the fact that the topic is highly relevant to the theory and practice. as a result, the objectives of this study are to conduct a literature review on the existing research on entrepreneurial ecosystems (which comes from the fields of entrepreneurship, strategy, and regional development literature) and to suggest several major research directions for guiding future theoretical and empirical research, to assist in the development of a better understanding of entrepreneurial ecosystems at national and regional levels. over the past few years, many researchers have brought attention to entrepreneurial ecosystems (hannigan et al., 2021). previous research on entrepreneurship has focused almost exclusively on the part that an individual's characteristics and temperament play. in contrast, the influence of the environment in which business is conducted has received a disproportionately small amount of consideration (vedula et al., 2019). developing a volatile environment that includes supportive programs, policies, and institutions is essential to the success of entrepreneurs (elnadi et al., 2021). there has not been a consensus among researchers on a single definition of the entrepreneurial ecosystem until this point (elnadi et al., 2021). wurth et al. (2022) defined it as a collection of factors that interact with one another in a way that makes it possible for activities related to entrepreneurship to flourish within a given region. in addition, ratten (2020) interpreted it as the region's interacting social, economic, political, and cultural factors that facilitate the creation and development of innovative start-ups and encourage new business venture risk-taking. these factors help to create an environment that is conducive to entrepreneurial activity. based on those mentioned above, two hypotheses are proposed, and the research framework is presented in figure 1: h1: the entrepreneurial personality has a positive influence on green entrepreneurship. h2: the entrepreneurial ecosystem has a mediating effect on the relationship between entrepreneurial personality and green entrepreneurship. figure 1: research framework 3. methodology through a quantitative methodology with correlational scope, this study establishes a population of 3598 university students from 10 peruvian universities. through the simple random probability sampling method with a confidence level of 95% and a margin of error of 5%, the sample consisted of 384 students. the sample comprised entrepreneurial personality green entrepreneurship entrepreneurial ecosystem agbioforum, 24(3), 2022 | 48 paricahua, padilla, madrid, tarazona, muñoz, acevedo, fernandez, quispe, gonzáles, gallegos and chávez. — the mediating role of… 44% male university students and 56% female university students. 37% were high school students, and 63% were elementary school students. the age range was 21–30 (28 %), 31–45 (37 %), and 46–65 (35 %). smart-pls was used to check the accuracy of the data and the relationship between the different variables. the best results can be obtained when the primary data is analyzed using a suitable tool. moreover, it can easily accommodate both small and huge data sets. the entrepreneurial personality and entrepreneurship ecosystem scale developed and validated by torres ortega was used as a research instrument. the rmsea is above the predicted value (>.08) for the tics management and mentoring/innovation subscales of the entrepreneurial personality scale and the entrepreneurial ecosystem scale, respectively. most of the subscales have satisfactory ordinal alphas (>.8), with the internal locus of control subscale having the lowest reliability (.838) and the learning subscale having the highest (.949). likewise, the scale of green entrepreneurship was measured using 6 items (lotfi et al., 2018). 4. findings in this study, the correlation between the constructs was investigated, and the results indicated that the alpha values are greater than 0.60, and the average variance extracted (ave) values are greater than 0.50. the composite reliability (cr) values are greater than 0.70. the factor loading values are greater than 0.50. in addition, the cr values indicate that there is a significant positive relationship between the constructs. this data points to a close relationship between the different components. these values can be seen in table 1. in addition, the degree of correlation between the variables was investigated. according to fornell larcker and the cross-loadings, the values indicating the association between the variables are significantly higher than those indicating the link between the variables and other constructs. these values are shown in tables 2 and 3, respectively. table 1. convergent validity dimensions loadings alpha cr ave entrepreneurial ecosystem ee1 0.853 0.841 0.874 0.812 ee2 0.823 ee3 0.758 ee4 0.812 ee5 0.842 ee6 0.794 ee7 0.784 ee8 0.726 ee9 0.817 ee10 0.812 ee11 0.849 ee12 0.784 ee13 0.715 ee14 0.746 ee15 0.871 ee16 0.823 ee17 0.861 ee18 0.784 ee19 0.718 ee20 0.791 ee21 0.811 entrepreneurial personality ep1 0.819 0.794 0.811 0.793 ep2 0.817 ep3 0.871 ep4 0.756 ep5 0.765 ep6 0.741 green entrepreneurship ge1 0.874 0.781 0.791 0.801 ge2 0.837 ge3 0.564 ge4 0.874 ge5 0.739 table 2. fornell larker ee ep ge ee 0.815 ep 0.678 0.678 ge 0.791 0.715 0.748 further, the bootstrap analyses were performed in structural equation modelling (sem) to test the study's hypothesis. the results of bootstrap analyses are presented in table 4 below, and the findings inferred a positive direct effect of entrepreneurship personality on green entrepreneurship, thus, accepting the h1. further, the results proved a mediating effect of the entrepreneurial ecosystem between the relationship of entrepreneurship personality and green entrepreneurship. therefore, hypothesis h2 is also accepted. agbioforum, 24(3), 2022 | 49 paricahua, padilla, madrid, tarazona, muñoz, acevedo, fernandez, quispe, gonzáles, gallegos and chávez. — the mediating role of… table 3. cross-loadings dimensions ee ep ge ee1 0.845 0.051 0.378 ee2 0.748 0.890 0.991 ee3 0.842 0.794 0.753 ee4 0.812 0.722 0.175 ee5 0.842 0.040 0.136 ee6 0.845 0.827 0.445 ee7 0.895 0.804 0.808 ee8 0.741 0.258 0.141 ee9 0.741 0.517 0.545 ee10 0.751 0.795 0.050 ee11 0.765 0.529 0.949 ee12 0.712 0.160 0.999 ee13 0.784 0.608 0.855 ee14 0.795 0.767 0.660 ee15 0.812 0.804 0.953 ee16 0.784 0.382 0.993 ee17 0.714 0.447 0.492 ee18 0.751 0.089 0.489 ee19 0.751 0.637 0.147 ee20 0.713 0.155 0.529 ee21 0.731 0.271 0.746 ep1 0.812 0.796 0.187 ep2 0.712 0.815 0.108 ep3 0.823 0.814 0.904 ep4 0.712 0.780 0.536 ep5 0.765 0.791 0.455 ep6 0.741 0.716 0.992 ge1 0.712 0.930 0.716 ge 2 0.712 0.961 0.815 ge 3 0.871 0.817 0.715 ge 4 0.816 0.086 0.719 ge 5 0.841 0.538 0.718 table 4. hypothesis testing relationship beta t-value p-value decision ep -> ge 0.285 5.715 0.000 supported ep -> ee -> ge 0.162 2.145 0.0319 supported *significance level = 0.05 5. discussion and conclusion according to the findings, an entrepreneurial personality, directly and indirectly, impacts environmentally responsible businesses through the entrepreneurial ecosystem. it's possible that if we encourage students to become more entrepreneurial by giving them access to favorable market conditions, funding, support, human capital, culture, and policy, we could help them develop the skills necessary to create and launch new environmentally responsible businesses. one way to do this would be to provide students with favorable market circumstances, funding, support, human capital, culture, and policy (karimi et al., 2022). the findings align with guerrero et al. (2020) and lyons et al. (2020). they demonstrate that students can acquire the necessary skills to create a business if they can recognize and regulate their emotions and use them to aid in their intellectual, decisionmaking, and communication tasks. the findings are consistent with guerrero et al. (2020), who found that students can acquire the necessary skills to create a business as long as they have them. on the other hand, students who can effectively manage resources, who can work effectively in groups, who have the intellectual capacity to learn, and who are socially sensitive are capable of effective entrepreneurship, which ensures socio-environmental care (dizji et al., 2018; ismail et al., 2019). providing tools for entrepreneurship can help students develop personality traits desirable for generating sustainable businesses. in other words, the entrepreneurial ecosystem can lay the foundation for students to develop the mindset necessary to learn entrepreneurial skills and create new environmentally responsible businesses. universities are tasked with strengthening education for sustainable development, which refers to students acquiring the skills and knowledge necessary to apply environmental practices through their ventures. higher education is crucial for the advancement of scientific understanding, the cultivation of entrepreneurial skills for the future, and the formation of an entrepreneurial ecosystem. a prerequisite for long-term prosperity is an educational system that emphasizes cultivating a green entrepreneurial vision. while this research has uncovered some crucial data, it needs further exploration. research with a representative sample of academic institutions is encouraged. fostering green entrepreneurship through an appropriate ecosystem and capacity building of future entrepreneurs. agbioforum, 24(3), 2022 | 50 paricahua, padilla, madrid, tarazona, muñoz, acevedo, fernandez, quispe, gonzáles, gallegos and chávez. — the mediating role of… 6. implications the results of this study nuance the hypothesis of university entrepreneurial ecosystems by demonstrating the importance of an entrepreneurial ecosystem and revealing that it is a mediator for fostering environmental stewardship. around the world, business schools are focusing on ways to improve students' disposition to green entrepreneurship, but they must pay attention to generating the right ecosystem. universities and institutions can use the findings of this thesis to provide more focused entrepreneurship instruction. they can improve university students' entrepreneurial desire and behavior and virtually steer the university's entrepreneurial ecosystem based on students' natural personal qualities. 7. limitations among the main limitations is the methodology based on a cross-sectional study since data is taken from a present situation, but taking data through a longitudinal study will allow a greater focus on the entrepreneurship process of university students. the conclusions of this study can only be extrapolated to young university students since they have an education, but not to young people who are still entrepreneurs but do not have a university education. future studies should generalize the population with other sociodemographic factors. references ahmed, t., klobas, j. e., & ramayah, t. 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(2019). predicting social entrepreneurial intention: a meta-analytic path analysis based on the theory of planned behavior. journal of business research, 96, 264276. doi: https://doi.org/10.1016/j.jbusres.2018.11.030 https://doi.org/0.1177/1042258721998948 https://core.ac.uk/download/pdf/234696625.pdf https://doi.org/10.3390/su10093335 https://doi.org/10.24205/03276716.2020.1097 https://doi.org/10.18869/acadpub.cstp.4.7.31 https://doi.org/10.1016/j.jbusres.2018.11.030 1. introduction 2. literature review 2.1 green entrepreneurship 2.2 entrepreneurial personality 2.3 entrepreneurial ecosystem 3. methodology 4. findings 5. discussion and conclusion 6. implications 7. limitations agbioforum, 25(1): 12-23. ©2023 agbioforum mango value chain analysis in the vietnamese mekong delta thong van le* school of political and administrative sciences, vietnam national university ho chi minh city, ho chi minh city, vietnam email: lvthong@vnuhcm.edu.vn phd candidate, university of economics and law, vietnam national university ho chi minh city, ho chi minh city, vietnam email: thonglv1610102@sdh.uel.edu.vn nguyen van luan university of economics and law, vietnam national university ho chi minh city, vietnam email: luannv@uel.edu.vn corresponding author: thong van le* in emergent economies, conventional fresh produce supply chain procedures are transforming into new "supermarket-led" supply chains. the sudden shifts in the fruit and vegetable industry result from the insane popularity of supermarkets, convenience stores, hypermarkets, etc., which also affects smallholder producers. the abovementioned changes impact intermediaries because of the demand for high-quality, safe fruits and vegetables. since procurement issues in conventional supply chain practices impact transaction costs, it is essential to evaluate the area. therefore, the study aims to analyze the current income of mango farmers in the vietnamese mekong delta from 2008 to 2018 and make recommendations to better their income so they can participate in the global value chain. the vietnam household living standards survey (vhlss) for 2012 to 2018 was utilized for this study. among the solutions that will be implemented shortly are the following: strengthening agricultural production planning; developing policies to encourage the development of effective value chains; establishing internal governance policies to increase links in the chain and ensure sustainability; and enhancing the role of state management in the value chain. key words: value chain; mango trees; agricultural production; vietnamese mekong delta. 1. introduction in recent years, particularly during agricultural restructuring in vietnam, the fruit industry in the mekong delta has flourished, contributing positively and effectively to the reorganization of the agricultural sector by better adapting to climate change and meeting market demand. market dynamics primarily drive the produce industry. the fruit-growing regions of the mekong delta in vietnam are important commodity-producing regions that focus on market demand. the region of fruit trees flourishes on both sides of the lower tien and hau rivers in dong thap, tien giang, vinh long, and hau giang provinces, where nutrient-rich alluvial soil is abundant and virtually no harm from floods and saline droughts. additionally, fruit trees began to flourish in the dyke areas, less susceptible to inundation. the total fruit area of the region increased by 21.6% between 2005 and 2017, particularly during the restructuring period from 2013 onwards, when the average fruit area of the vietnamese mekong delta increased by 2.6% per year, double the rate of the previous period. in 2017, the fruit area of the entire region reached 326 thousand hectares or roughly 40% of the country's total land area. citrus (increased by 12,500 hectares), mango (increased by 23,3 hectares), banana (increased by 4.5 hectares), grapefruit, durian, mango, and banana are examples of rapidly expanding fruit trees. the mekong delta contributes 60% of the country's total produce production by supplying over 3.5 million fruits to the market each year. the ministry of agriculture and rural development's fruit planting program for five varieties of fruit, including mango, dragon fruit, longan, rambutan, and oily fruit, has yielded positive results. increasingly, safe and environmentally responsible agricultural practices (gap, vietgap, global gap) are being implemented, along with numerous planting and care instructions for fruit rice in mangrove and arid conditions. according to statistics, the area devoted to fruit cultivation in the mekong delta in 2019 was 1,1 million hectares. mekong delta is the greatest fruit-producing region in vietnam, accounting for nearly 35 percent (anh et al., 2020). although mango is considered the most famous tropical fruit, it is more prevalent in asia. according to the statistics, vietnam ranked eleventh globally and seventeenth in asia regarding mango volume. moreover, the nation ranks third in southeast asia, behind thailand and indonesia, which hold the first and second spots, respectively (faosat, 2019). in 2019, mango production was 815,200 tons in volume and 104,000 ha in production area (gso, 2020). even though the pandemic reduced the export value of fruits and vegetables in 2019 and 2020, vietnam's exports increased from 68 million to 279 million usd between 2016 and 2020 (khoi, 2021). according to gsp, the mekong delta has the highest mango production percentage. as discussed, the region is regarded as the country's greatest mango-producing region, accounting for 46.3% of the national total. the region is also considered a mango cultivation hub, accounting for 62.8% of the total mango production in vietnam, or approximately 511,945 tons. the mango project msg study conducted in 2020 revealed that the mango volume structure of the mekong delta region was 45.5% tuong-mango, 22.6% chu mango, 9.4% haaloc mango, and 22.2% other mango mailto:lvthong@vnuhcm.edu.vn mailto:thonglv1610102@sdh.uel.edu.vn mailto:luannv@uel.edu.vn agbioforum, 25(1), 2023 | 13 le, luan. — mango value chain analysis in the vietnamese mekong delta varieties. although chu-mango ranks second in volume, it stands out due to its diverse consumption markets and wide range of derivative products. tuong-mango highlights the chinese market with raw fruit, whereas hao-loc mango caters to local consumers with ripe, fresh fruit (troung et al., 2022). a giang, hau giang, dong thap, tien giang, vinh long, and ben tre have begun to cultivate mangoes and citrus fruits in specialized regions. plantations dominate the fruit region, and crops are frequently switched to diversify income and reduce risk. models such as the mekong delta fruit cooperative were developed relatively recently (primarily after 2006), and many formal models that are not fruit marketing cooperatives support farmers in consumption. however, after five years of reorganization, the connection between fruit businesses and cooperatives is receiving attention and is being encouraged to grow. several cooperative models link well with businesses in the vietnamese mekong delta, such as tan thuan tay mango cooperative (dong thap province), which has been cooperating with long uyen company to supply and consume mangoes; hoa loc cooperative links mango supply and consumption with several companies in ho chi minh city to consume mangoes. the fruits produced in cooperatives associated with companies are made under the vietgap or globalgap process as the main growing area for famous specialty trees certified to meet vietgap and globalgap standards in tien giang, such as tan lap cluster (tan phuoc), ngu hiep durian (cai loi), hoa loc sand mango (cai be), dragon fruit (rice market), or mango cultivation models with sufficient conditions for safe production in cao lanh district, cao lanh city (dong thap). in recent years, the expansion of export markets and the diversity of fruit tree products have significantly affected the increase in the mekong delta's fruit export turnover. since 1994, exports of fruit trees in the region have begun to rise again, reaching 66.14 million us dollars in 2005. from 2005 to 2010, the export turnover increased by an average of 10% per year, reaching 107.29 million usd in 2010. in the five years from 2012 to 2017, the export turnover of produce from the mekong delta grew rapidly, averaging 43% per year and reaching $1.7 billion in 2017. numerous products from the region's fruit trees are exported to many countries around the globe with increasing quality and have become the region's primary export. however, fruit and vegetable exports are highly reliant on the chinese market; china presently accounts for 75.68 percent of vietnam's fruit and vegetable export market share. some branded fruits include the hoa loc sand mango, the cao lanh mango, the nam roi citrus, and the lo ram star apple. in addition to aquaculture and rice, the vietnamese mekong delta's fruit industry must be restructured to further integrate into the global value chain and contribute to the region's sustainable development. mangos are among the fruits of the mekong delta in vietnam, with a high growth rate and numerous potential consumer markets. figure 1: study area in mekong delta figure 2: production volume of mangoes in vietnam 2016-2021 (source: statista) this study aims to analyze the current situation of the mango value chain in the vietnamese mekong delta from 2008 to 2018 and evaluate the chain's current status in terms of value addition to provide policy recommendations to improve the added value of the vietnamese mekong delta's mango tree chain so that it can participate in the global value chain. 2. literature review fernandez-stark et al. (2011), von hagen and alvarez (2011), and c. s. dolan and tewari (2001) argue in their agbioforum, 25(1), 2023 | 14 le, luan. — mango value chain analysis in the vietnamese mekong delta study of value chain upgrading solutions that participation in supply chains with different governance models will impact the upgrade and innovation capabilities of the actors involved in that supply. for instance, participation in the vegetable and fruit supply chain for the uk market has a significant influence on the upgrading and innovation of african actors (growers, intermediaries, exporters, etc.). these studies have summarized four categories of supply chain enhancements: process enhancements, product enhancements, functional enhancements, and chain enhancements. consequently, following the proper governance model, it is essential to determine the target market's requirements before selecting and implementing the most appropriate chain upgrade solutions for each product group. similar to jaffee and masakure (2005), gereffi et al. (2005), cook and wang (2004), and c. dolan and humphrey (2004), jaffee and masakure (2005) focus on supply chain management and agricultural supply chain specifically. methods for managing the farm supply chain include markets, agricultural contracts, and vertical integration. in the supply chain of agricultural products, the research reveals numerous connections between actors, the most important of which is the link between the primary actor (leader) and suppliers (farmers, cooperatives, and other intermediaries). the supply chain management method will determine which actors are involved in the chain, the mode of participation, the capacity to innovate and enhance, and the distribution of profits within the chain. humphrey (2006) analyzed global value chains for agribusiness by determining the function of leading companies, the competitive position of the chain, and the governance of inter-company relationships along the value chain. this study offers a comprehensive comprehension of the effects of value chain dynamics on the structure of production in developing countries and the income distribution among value chain components. this is also confirmed by the research of wysocki (2000), c. s. dolan and tewari (2001), and gereffi and christian (2009), who examined the forms of distribution and supply chain of agricultural products in developed nations like the united states and developing nations like cambodia and the philippines. the results confirm differences in food supply chains between developed and developing countries in terms of chain organization, chain activities, chain actors, and food safety and hygiene standards that must be met and enforced in the chain to access those markets. similar to chemnitz (2007), gereffi and lee (2012), henson and humphreys (2009), jaffee and masakure (2005), and reardon and farina (2001), gereffi and lee (2012), henson and humphreys (2009), jaffee and masakure (2005), and reardon and farina (2001) believed that participation in various supply chains affects issued and enforced food safety standards. from production to ultimate consumption, supply chains for developed markets typically require higher food safety standards than those for developing nations. developed nations also use food safety standards as an entry barrier for food producers and processors from developing nations. to enter the market, developing nations must employ the food safety standards of developed nations (reardon & farina, 2001). according to jaffee and masakure (2005), manufacturers and processors in the food industry can gain a competitive advantage by adopting and meeting food safety and hygiene standards. hu et al. (2004), dobson et al. (2003), gehlhar and regmi (2005), hagen and simons (2003), reardon et al. (2003), reardon et al. (2005) believed that there is a trend of centralization in the field of processing and providing inputs for food production in the food industry. in addition, retailers such as supermarkets play a growing role in coordinating, organizing, managing, innovating, and distributing revenue along the value chain. gtz (2007) disseminated the valuelinks methodology to aid in the analysis and development of tools that promote the value chain in practice efficiently and uniformly. gtz's approach is practice-oriented, dividing value chain analysis into modules that include principles and standards for selecting analytical tools, creating effective intervention strategies, monitoring, and evaluation. these modules are not fixed duties but standards and principles; implementation in practice is extremely flexible. documents published by ifad in 2014 provide guidelines for the development and promotion of agricultural value chains, such as guides on (i) developing value chain development projects, (ii) monitoring the implementation of value chain development, and (iii) public-private cooperation in value chain development. similar to the value link's handbook (2007), this collection of documents guides the value chain development process from chain selection to data collection, analysis, making interventions, and devising an action plan and a program/project monitoring plan. specifically, the document emphasizes the importance of public-private partnership mechanisms in promoting value chain development. in addition, ifad (international fund for agricultural development (2011) provides a set of practice guidelines for value chain development via 25 suggested questions to select, analyze, propose intervention strategies, and implement these strategies to develop the established value chain. additionally, the international labour office (2015) disseminated guidance documents on value chain development about labor issues in the value chain. forming vertical connections through agricultural contracts is one of the crucial components of promoting value chain development. numerous documents such as unidroit (2015) and ifad (2015) detail the implementation guidelines for this hyperlink. in these documents, the role and participation of third parties in agricultural contracts and the agreement of product quality standards, pricing, and constraints are discussed and implemented. agbioforum, 25(1), 2023 | 15 le, luan. — mango value chain analysis in the vietnamese mekong delta donovan and poole (2014) analyzed and contrasted eleven research methodologies and intervention design guidelines for value chain development. the authors argue that the policies provide an adequate framework for comprehending the market and the participation of actors along the supply chain, emphasizing institutional strengthening and the design of sustainable interventions. however, the governing documents do not discuss the specific conditions and traits for developing each operating chain. the author emphasizes the importance of regular chain summarization, synthesis, and monitoring for sustainable growth. fernandez-stark et al. (2011) analyzed the role of human resource development in several developing countries (chile, jordan, kenya, honduras, and morocco) and participation in the global fruit and vegetable industry in their analysis of economic upgrading and human development in the global fruit and vegetable value chain. in the document, the authors emphasize that the development of these countries' fruit and vegetable value chains is associated with a functional improvement strategy or a transition to higher value-added activities in the industry, such as a shift from promoting products to promoting packaging, processing, and then the complete management of distribution and marketing channels. however, nations must complete the preceding stages to upgrade effectively. to concentrate on improving the processing stage, for instance, the production stage must be implemented first to have sufficient raw materials for processing, and no investment capital is wasted. in addition, to gain access to the global fruit supply chain, the application of the product improvement strategy and chain operation process associated with the application of science and technology, management solutions in the operation of the chain, and compliance with quality standards (gap for production), other sps standards for other stages of the chain, and haccp for processing are crucial. in addition, the author stated that countries must give close attention to human resource training to develop the output chain if these strategies are to be successful. a general evaluation of previous empirical studies can demonstrate that, even though agricultural value chain research includes common characteristics of agricultural products, each item has its characteristics, benefits, and drawbacks. the study of the value chain of fruit trees in the mekong delta that participate in the global market has its characteristics (market, technology, governance, and information). this study examines the unique characteristics of the mango value chain in the mekong delta that are inapplicable to the standard analytical framework and instruments for agricultural products. this is another significant research lacuna. 3. overview of mango production and value chain in the mekong delta region 3.1 overview of mango production, processing, storage, and distribution and consumption in the mekong delta region 3.1.1 the overall situation of mango production in the mekong delta mango is a prominent tree in vietnam, where it is grown in 59/63 provinces and cities on an area of approximately 100 hectares, ranking second in fruit tree planting areas after banana. particularly, mango acreage decreased from 87.6 thousand hectares in 2009 to 83.7 thousand hectares in 2015 and has since increased (table 1). the country currently has 57 varieties of mangoes of all types, but only four varieties of high-quality mangoes: hoa loc, chu mango varieties, chau nghe, and tuong mango varieties. however, the hoa loc mango is the cultivar with the highest quality and most concentrated cultivation. table 1: mango cultivation area in vietnam, 2009-2018 (unit: thousand hectares) region/year 2009 2010 2015 2016 2017 2018 average national scale 87.6 87.5 83.7 86.6 92.7 99.6 1.4 red river delta 1.9 1.8 2.2 2.2 2.4 2.4 2.5 northern midland and mountainous 8.5 8.4 8.3 8.7 12.2 15.9 7.2 central region 14.2 13.8 14.2 14.2 14.7 15.2 0.8 central highlands 2.1 2.2 2.7 2.4 2.9 3.2 4.9 southeast 17.4 18.1 17.4 17.2 17.8 17.8 0.3 mekong delta 43.5 43.2 39 41.9 42.7 45.1 0.4 (source: ministry of agriculture and rural development, 2019) table 2: mango cultivation area in vietnam and localities in the mekong delta, 2005 – 2017 (unit: ha) 2005 2009 2010 2015 2016 2017 national scale 80–100 87,600 87,500 83,700 86,700 92,700 mekong delta 38,200 43,500 43,190 39,000 41,900 42,725 dong thap 6,143 8,892 9,300 8,656 8.768 9,128 tien giang 6,072 6,612 6.657 4,574 4,693 4.710 11 other provinces. 25,985 27,996 27,233 25,770 28,439 28,887 source: general statistics office, (2018) agbioforum, 25(1), 2023 | 16 le, luan. — mango value chain analysis in the vietnamese mekong delta in the mekong delta, mangoes are primarily grown in the provinces of dong thap and tien giang. the mango area in the mekong delta increased from 43.5 thousand hectares in 2009 to 45.1 thousand hectares in 2018. particularly, the mango areas of tien giang and dong thap account for approximately 32% of the region's total mango area but account for about 50% of the total mango production in the mekong delta (table 2). due to individuals occupying the space formerly inhabited by ineffective trees, mango cultivation has steadily expanded over the years. 3.1.2 the overall situation of mango processing in the mekong delta throughout the years, the selling price of mangoes and most other fruits in the mekong delta during peak harvest has frequently been unstable. the regulation of product consumption is difficult, but mangoes are primarily consumed in their raw form in the region and the nation, causing stagnation and damage. therefore, developing post-harvest processing technology for the mango industry is crucial for the global consumption of mangoes. mangoes are currently processed into value-added products, including mango marmalade, candy, mango juice, dried mango, mango vinegar, soot mango, and mango wine. however, processing and preservation for export to significant markets such as japan, the united states, and the european union remain extremely difficult due to the small annual harvest output. the technology and preservation equipment system is still inadequate, making it difficult to meet export standards for discerning markets. in other words, it is still difficult to develop the mango industry so that it can access the global market. 3.1.3 the overall situation of mango preservation in the mekong delta the mango harvest typically occurs between the dry season's conclusion and the wet season's start. this harvest season is earlier than the southeastern provinces and distinct from the northern provinces. this advantage is partly attributable to the favorable natural conditions and refining methods for fruit production. this is a benefit of the mango industry in vietnam, which supplies mangoes to the global market. however, the majority of mango products are consumed as fresh fruit, and the shelf life of fresh mangoes is very brief; therefore, the technology of preserving fresh fruits is crucial. to date, however, keeping fresh produce still relies on traditional methods. no technological advancements have occurred, so the consumption period cannot be lengthened. the country continues to rely primarily on manual preservation techniques for mango products consumed domestically to sell fresh produce. businesses mainly process frozen mangoes for export (slicing for the flesh, removing the seeds, freezing, and exporting), but the quantity is not substantial. after being harvested, each carton will typically be packed with fresh produce. depending on the transport distance, the fruit may be packaged in wooden crates, foam crates, cartons, or even bamboo baskets, which must be covered with paper cushions, foam bags, straws, or papyrus. using plastic and foam containers to store exported mangoes has substantially reduced the rate of transportation damage in recent years. after harvest, mangoes are rarely refrigerated for transport or chemically treated. in the export of fresh mangoes to other countries, preservation techniques are performed in phases, including packaging and storage in specialized cold storage at the port. in general, the harvesting, preservation, and transportation of fruits to the site of consumption are all performed manually and entirely by merchants; consequently, the quality of mangoes, when they reach consumers, is diminished, and the post-harvest loss rate is still quite high. the purchasing network is completely confident. the promotion of investment in post-harvest technology should therefore continue to receive sufficient attention. in contrast, technology development for preserving, storing, and processing mango products should be geared toward product and market diversification. 3.1.4 general situation of mango distribution and consumption in the mekong delta mangoes are one of the most significant fruits, second only to bananas, which are widely consumed and have a lengthy history. in addition to its use as a delicacy or nutritious food, mango is frequently consumed on holidays, memorial days, and full moons. during these periods, the consumption of mangoes fluctuates dramatically. after bananas and oranges, mango is currently vietnam's third most consumed fruit. according to vhlss, the average mango consumption per vietnamese citizen in 2010 was 4.7 kg annually. consumption of mangoes has increased over the years, and competition is intensifying, even displacing traditional fruits like oranges and avocados. according to the calculations of the institute of agriculture and rural development, the price elasticity coefficient of mangoes is (-0.91 when the price decreases by 1%, the consumption rises by only 0.91%), and the income elasticity coefficient of luxury goods is (1.13) when the income rises by 1%, the consumption rises by 1.13%. in contrast to other fruits, such as bananas, whose income elasticity coefficient is less than one (1), mango consumption is anticipated to increase as living conditions improve. it is difficult for other suppliers to penetrate markets such as the united states and china on the global market. due to the demand for mango exports, we still have opportunities in other markets, including the european union, south korea, australia, and new zealand. moreover, mango products with "organic" and "fair-trade" certifications are gaining popularity, and processed mango agbioforum, 25(1), 2023 | 17 le, luan. — mango value chain analysis in the vietnamese mekong delta products will be a new development focus for the vietnamese mango industry. 4. overview of the mango value chain in the vietnamese mekong delta in the mekong delta of vietnam, mangoes are primarily consumed in their unprocessed, unripe state, while relatively few are consumed after processing. mango products are mainly distributed through the four channels shown in figure 1: 4.1.1 channel 1: mango growers – consumers mango producers sell directly to consumers via this channel. farmers or merchants in mango-growing regions establish roadside stands to sell to motorists. when the farmer sells through this channel, they earn 10 to 20% more than when selling to local collectors or shippers. however, only about 3% of mangoes are consumed through this channel, as farmers lack the time and space to trade, and this channel cannot consume a significant quantity of mangoes. figure 1: mango supply value chain diagram of the vietnamese mekong delta region, 2019 (source: drawn from results of the focus group discussion; 2019) 4.1.2 channel 2: mango growers – collectors – local collectors – distribution wholesalers/ merchants retailers/supermarkets consumers mango cultivators sell mangoes to collectors, who purchase them at a garden or a collectors' meeting place near the mango plantation. collectors organize and transport products to local packaging stations in markets or larger product aggregation centers. mangoes are sorted and packaged once more before being sold to long-distance traders or transported to distribution warehouses or large cities. in addition, mango producers can harvest mangoes and sell them directly to local collectors after negotiating prices over the phone. this is how mango producers who harvest 100 kilograms or more sell their fruit. if sold this way, mango producers can fetch a slightly higher price than when selling to collectors. mango cultivators in this channel are typically traditional growers who employ the "bucket" selling format (selling at the same price without classification). more than 80 percent of mangoes produced by farmers are ingested through this channel. 4.1.3 channel 3: mango growers – cooperatives – processing enterprises/companies – retailers/supermarkets consumers the quality factor takes precedence because the consumer is a processing business or company. typically, mango producers in the channel adhere to the gap technical process, resulting in greater productivity and product quality than in conventional production. the cooperative is responsible for accumulating and classifying packaging before its export to enterprises/companies engaged in processing. businesses can either sell raw mangoes or slice them, package them, and sell them to grocery stores. however, only about 10% of the region's mangoes are consumed this way. 4.1.4 channel 4: exported mangoes in the mekong delta of vietnam, raw and processed mangoes are exported. local farms obtain mangoes in their fresh state from farmers or collectors. local farms resell their produce to long-distance distribution/merchant depots to export to foreign nations. exporters resell to foreign importers, who then resell to supermarkets and other retail outlets. typically, the quantity of mango consumed through this channel is negligible. 4.2 value-added formation of the mango value chain in the vietnamese mekong delta 4.2.1 mango growers the value-added of the mango supply chain begins to take shape during the production phase. different techniques, methods of production, and methods of sale will result in varying levels of output and prices. in other words, it will result in a different value-added tax rate. currently, there are two groups of mango farmers: the traditional farming group and the farming group adhering to the vietgap agbioforum, 25(1), 2023 | 18 le, luan. — mango value chain analysis in the vietnamese mekong delta technical process, with the two primary types of sale (table 3) being the sale of "buckets" (unsorted sale) and sale with classification to meet two distinct consumption channels. in certain phases, such as harvesting, watering, weeding, and fertilizing, mango-growing households incur intermediate expenses for fertilizers, pesticides, raw materials, and service rentals. these costs differ based on each household's technique, awareness, financial ability, and, most importantly, production method. the average cost is the basis for calculating the added value in mango production (table 3). the survey's average productivity is 8.74 tons/hectare, greater than the national average productivity (8.41 tons/hectare). the group of mango growers under the vietgap process has an average yield of 10.25 tons/hectare/year, significantly higher than the national average. in contrast, the group of traditional mango growers has an average yield of 7.22 tons/hectare/year, which is only 70.46 percent of the yield of mango growers under the vietgap process (table 3). this variation depends on several variables, including mango age, mango variety, and cultivation method. this indicates that the potential for increasing mango productivity to increase the value-added of mango products is still quite large (table 3) if mango areas are intensified following sound agricultural practices. table 3: value-added of mango growers in the vietnamese mekong delta region category traditional production group production households, according to the vietgap process type 1 (30%) type 2 >50%; type 3 20 total no. of samples n = 50 n =10 production value per 1 hectare average mango yield (ton per hectare) 7.22 3.08 5.13 2.05 10 25 selling price (million vnd per ton) 22.00 35.00 25.00% 12.00 25.40 gross output (million vnd) 158.91 107.63 128.13 24.60 260.35 intermediate cost over 1 ha (million vnd/ha) cost of fertilizer 38.70 33-50% expense for pesticides 35:50 30.68 cost of fuel, other costs 3.92 5.66 outsourced service cost 19:57 20:41 depreciation of orchards1 2,81 2.54 total cost 100.50 92.78 value added (million vnd) gross output per hectare 158.91 260.35 production cost per hectare 100.50 92.78 vat per hectare 58.41 167.57 vat per ton 8.09 16.35 (source: compiled from results of the survey) in addition, exploratory factor analysis is performed to not only is the productivity of mangoes grown traditionally lower, but their selling price is also lower. because the quality is not good and uniform, these households sell unclassified (in buckets) mangoes so that the owner can sell all the good and bad mangoes at once and not have to spend time selling each variety separately (bad types are often more difficult to deal and fewer buyers are interested). typically, these households' mango production structure consists of 20% type 1, 40% type 2, and 40% type 3. even though mangoes cultivated by mango farmers under the vietgap process are of high quality and uniformity, this group of households frequently chooses to sell based on product classification: type 1 typically accounts for 30% of production, type 2 for 50%, and type 3 for 20%. each variety of mango will be sold at a different price, with a significant disparity between them. this resulted in a gross output of 158.91 million/ha for the traditional household planting group, significantly lower than the gross output of 260.35 million/ha for the vietgap household planting group. 1assumption: mangoes are harvested after 3 years of planting, the stable harvest time of mango is 50 years vietgap's total production costs per hectare of mangoes are 7.72 million/hectare less than those of the traditional mango cultivation group. the primary reason is that the gap production method will minimize using fertilizers and pesticides, resulting in significant cost savings (table 2). the mekong delta's vat per hectare of mangoes is computed using gross output and intermediate cost data (table 3). the survey results indicate that the value-added per hectare of mango varies significantly between distinct groups of farmers. the mango-growing households that followed the vietgap process obtained an extremely high vat rate of 167.57 million vnd/hectare. in contrast, the mango-growing households that followed the traditional method only reached 58.41 million vnd/hectare. according to mango production, it is estimated that mango growers following the vietgap process will earn approximately 16.35 million vnd per ton of mangoes for sale. in comparison, traditionally, households producing mangoes will only earn about 8.09 million vnd per ton of mangoes for sale. agbioforum, 25(1), 2023 | 19 le, luan. — mango value chain analysis in the vietnamese mekong delta consequently, the organization of mango cultivation following the vietgap process will earn a higher vat than traditional producers. this may be a policy recommendation for reorganizing mango cultivation and technical assistance in the mekong delta to enhance mango quality. 4.2.2 collectors mango producers may also be collectors. they have sold mangoes to familiar packaging warehouses for many years. when mango season arrives, they purchase mangoes from local manufacturers to resell in packaging warehouses. the collector may also be a friend of the proprietor of the packing department who collects mangoes for the owner in exchange for the price differential. collectors are the link between the proprietor and the farmer, playing a crucial role. the vat calculation for the collection group is based on the sale price of products to local farms, the purchase price of products from mango farmers, and intermediate costs incurred during the purchasing process (table 4). table 4: vat of mango collectors in the vietnamese mekong delta for 1 ton of fresh mangoes category value (million vnd) expenses for mango collection cost of transportation, loading, and unloading 0.30 the expense of renting collectors 0.20 cost of sorting and packaging 0.38 other expenses (electricity, small equipment, interest...) 0.20 cost of loss 0.40 total costs 1.48 value added (million vnd) purchase price of input 22.00 intermediary costs 1.48 selling price for fruit warehouses/retailer 25.00 vat/ton mango 1.52 (source: compiled from results of the survey) according to the survey results, this category's vat per ton of mangoes reached 1,52 million. the costs for this activity have been minimized regarding utilization quota, so they can only increase because it is difficult to reduce input costs (fuel, labor, etc.). based on a stable procurement organization and improved preservation to minimize losses and improve mango quality, the possibility of increasing vat at this time is minimal, if at all. 5. local farm the local farm is the most important link in the supply chain. local farmers conduct business by purchasing mangoes from collectors or directly from cultivators. most local farm owners buy mangoes from collectors at higher prices than from farmers because the quality of mangoes collected by collectors is typically superior, more consistent, and categorized to their specifications. in the meantime, owners frequently must reclassify when purchasing mangoes from producers. in contrast, when purchasing mangoes from collectors, the daily purchase quantity can be estimated, whereas the yield from farmers is unknown, making it difficult to organize transportation. more than eighty percent of the mango collected by the farms is sold to distribution depots in other cities, such as ho chi minh city and hanoi. the owners do not receive payment until the distribution department outside the province has sold all of the products (typically within a month). only cai be district, tien giang province fruit farms were surveyed in this investigation. the cost of a fruit farm per ton of mango typically includes the price of mangoes, the cost of preservation, the cost of sorting, the cost of transportation, the cost of loss, and additional costs such as the cost of tools, the cost of electricity, the cost of interest, and the opportunity cost of capital (table 5). table 5: value-added of mango local farm in the vietnamese mekong delta calculated for 1 ton of mango, unit: million vnd category value (million vnd) expenses for mango collection cost of transportation, loading, and unloading 0.40 storage expenses 0.20 cost of sorting and packaging 0.38 other expenses (electricity, small equipment, interest...) 0.20 cost of loss 0.30 the opportunity cost of capital 0,23 total costs 1/71 value added (million vnd) purchase price of input 25.00% intermediary costs 1/71 sale price 29.00 vat/ton mango 2.29 (source: compiled from results of the survey) agbioforum, 25(1), 2023 | 20 le, luan. — mango value chain analysis in the vietnamese mekong delta vat per ton of mangoes reached $2.29 million at this point. as with collectors, the costs for this activity have been minimized in terms of usage quota, so the likelihood of increasing vat at this stage is minimal if at all, based solely on stable procurement and storage, faster and better transportation to consumption locations to reduce losses and improve mango quality. 5.1.1 cooperatives the functions of mango-purchasing cooperatives are comparable to those of local collection agents and plantations. the cooperative will purchase mangoes from mango farmers (typically members) and resell them to processing companies or supermarkets. however, the cooperative only purchases mangoes from gap-compliant producers to guarantee quality and satisfy the needs of consuming partners. typically, the cooperative and its associates conduct purchases and sales using the contract method, and the proceeds from the sale of mangoes are refunded to the cooperative between one-half and one month later. this is another factor that reduces the cooperative's added value (table 6). the cooperatives value-added consists of the price difference between the selling price to consumption partners and the purchase price from mango producers, plus the intermediate cost incurred during the purchasing process. table 6: vat of mango purchase cooperative for 1 ton of fresh mangoes category value (million vnd) expenses for mango collection cost of transportation, loading, and unloading 0.30 the expense of renting collectors 0.20 cost of sorting and packaging 0.45 other expenses (electricity, small equipment, interest...) 0.30 cost of loss 0.25 the opportunity cost of capital 0.24 total costs 1.74 value added purchase price of input 25.50 intermediary costs 1.74 sale price 30,00 vat/ton mango 2.76 (source: compiled from results of the survey) the cost of loss is considerably reduced by 0.25 million/ton (compared to the collecting agent's cost of 0.40 million/ton) due to the higher quality of mango and copper of the purchased product than the two groups of agents listed above. despite the increase in the cost of sifting and packaging (0.45 million/ton), the price is still quite high due to the high quality of the products and the fact that supermarkets and processing companies are the end consumers. this group of agents had a higher value-added tax per ton of mango than collection agents (1.52 million) and local plantations (2.29 million). 5.1.2 wholesalers the value-added of the distribution unit, which is identical to that of the collector and the local farm, is determined by subtracting the department's selling price from its costs (including mango purchase costs and intermediary costs). the intermediate cost of the distribution unit consists of storage, transportation, sorting, and other expenditures. the vat generated per ton of mango reached 2.62 million (table 7). table 7: value-added of mango distribution warehouse for 1 ton of fresh mangoes category value (million vnd) expenses for mango collection cost of transportation, loading, and unloading 0.30 storage expenses 0.20 cost of sorting and packaging 0.38 other expenses (electricity, small equipment, interest...) 0.20 cost of loss 0.30 total costs 1,38 value added (million vnd) purchase price of input 29.00 intermediary costs 1,38 selling price for fruit farm/retailer 33.00 vat/ton mango 2,62 (source: compiled from results of the survey) 6. retailers/ supermarkets similar to intermediate groups, which include collectors, local farms, and distribution warehouses, retailers and supermarkets calculate their vat by subtracting their revenue from their expenditures, including mango purchase and intermediary costs. the retailer's/grocery store's/supermarket's intermediary costs per ton of mangoes include storage, transportation, classification, and attrition agbioforum, 25(1), 2023 | 21 le, luan. — mango value chain analysis in the vietnamese mekong delta costs (table 8). table 8: vat of retailers and supermarkets for 1 ton of fresh mangoes category retailer supermarket costs of purchasing mangoes cost of transportation, loading, and unloading 0.30 0.30 cost of sorting and packaging 0.38 48 other expenses (electricity, small equipment, interest...) 0.20 0.40 cost of loss 0.20 010 total costs 1.08 1.28 value added (million vnd) purchase price of input 33.00 36.00 intermediary costs 1.08 1.28 sale price 38.00 42.00 vat/ton mango 3.92 4.72 (source: compiled from results of the survey) due to the socioeconomic characteristics of large cities, food markets, grocery stores, and fruit and vegetable markets can be found in residential areas. due to the abundance of retailers, they operate with modest capital and have few daily sales. 70% of their capital is between 2-4 million vnd, while only 30% is between 10-30 million vnd. due to the small quantity of capital that can be turned over rapidly, retailers visit wholesale markets every two to three days to purchase 50 to 150 kg of mangoes and other fruits. this quantity of mangoes is typically sold within two to three days for an average of 30 to 50 kilograms. the supermarket system is also a retail channel, albeit one with greater output, higher quality, and distinct consumer groups than retailers. therefore, the purchase and selling prices are also increased, but the retailer's loss cost will decrease more. in other terms, the supermarket system will generate greater value-added than the retailer. specifically, according to table 7, the retailer's vat is 3.92 million /ton, 17% less than the supermarket system's 4.72 million /ton mango. 7. processing enterprises/ companies vat per ton of mangoes is determined by the difference between the selling price of one ton of mango products and the intermediate cost of processing one ton of mango products. the intermediate costs of factories consist of petroleum costs, transportation/loading costs, packaging costs, and processing costs, as well as additional costs such as energy costs for processing, costs for purchase and sale procedures, and environmental management/sanitation costs. according to the survey's aggregate results, the intermediate cost at this stage is 1.89 million vnd per ton of completed mangoes, while the vat generated is 4.11 million vnd per ton (table 9). table 9: vat of processing enterprises/ companies (unit: 1 ton of mango) category value (million vnd) purchase price of input 30,00 intermediary costs 1.89 sale price 36.00 vat/ton mango 4.11 (source: compiled from results of the survey) 8. conclusion and policy implications this study analyzes the current situation of the mango value chain in the vietnamese mekong delta from 2008 to 2018. it assesses the current situation of value-added formation in the chain, thereby identifying policy implications for enhancing the vietnamese mekong delta mango tree chain's ability to participate in the global value chain. among the solutions shortly are: 8.1 planning solutions construct a national plan for the produce industry's growth. this is the premise for the development direction and the implementation of other value chain developmentpromoting solution packages. in addition, the ministry collaborates with localities to develop a project on subsector development planning and direction to prevent unplanned local development. concentrate on the national main product categories, such as mango, longan, orange, lychee, grapefruit, dragon fruit, pineapple, durian, lemon, rambutan, jackfruit, soursop, tangerine, and guava. coordinate with the ministry of industry and trade and the ministry of transport to integrate sector development planning with the planning of transport, electricity, and logistics systems; so that they can synchronize infrastructure to ensure the development of the value chain and the formation of clusters linking the fruit region with the industrial cluster of processing, preservation, and cold storage services. identify and announce the planned land areas to ensure that the infrastructure has been invested synchronously (irrigation systems, transportation, electricity, etc.) or has committed to invest by the schedule to develop the value chain and to develop clusters of the industry to link agbioforum, 25(1), 2023 | 22 le, luan. — mango value chain analysis in the vietnamese mekong delta planting areas and processing collections while preserving preliminary processing and logistics services. 8.2 develop policies to encourage the development of effective value chains expand value chain financing to the fruit industry so that businesses that invest in the intensive processing of fruit products can take advantage of this benefit. in addition, it is necessary to continue researching additional suggestions for supporting enterprises investing in rural agriculture, particularly enterprises investing in deep processing and enterprises affiliated with farmers and cooperatives. support is suggested for lowering income taxes for businesses and individuals involved in producing and selling agricultural products. 8.3 internal management policies increase the chain’s linkages to ensure sustainability to guarantee the connection between agents, include additional policies: add the direction of support for increasing linking capability, expanding trade marketing (creating a website, participating in fairs and exhibitions), and assisting in developing a system to monitor the origin of products along linked supply chains. assist chain actors in gaining access to preferential policies by bolstering their capacity and assisting affiliated individuals or organizations and other related topics, such as negotiating skills, establishing affiliate contracts, affiliate projects, production plans, and market development. 8.4 enhancing the role of state management in the value chain develop a national database system on fruits, concentrating on key fruit groups and growing areas, to improve the fruit value chain application of the state management solution package. strengthening origin management: developing an identification system using codes for agents involved in the fruit business and the production chain, as well as connecting the database system to connect agents through identification codes, to support the operation of the origintracing system and 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https://doi.org/10.1016/s1096-7508(02)00067-8 https://www.jstor.org/stable/1244885 https://www.unidroit.org/wp-content/uploads/2021/06/contract-farming-legal-guide.pdf https://www.unidroit.org/wp-content/uploads/2021/06/contract-farming-legal-guide.pdf https://www.unidroit.org/wp-content/uploads/2021/06/contract-farming-legal-guide.pdf https://dx.doi.org/10.2139/ssrn.2184282 https://ageconsearch.umn.edu/record/27808/files/31030053.pdf https://ageconsearch.umn.edu/record/27808/files/31030053.pdf agbioforum, 25(1): 78-86. ©2023 agbioforum analyzing the financial performance of private banks listed in the iraqi stock exchange using continuous improvement process zainab raheem hassan department of finance and banking college of administration & economics, university of babylon, iraq email: mailto:mly35644@gmail.com assad munshid mohammed department of finance and banking college of administration & economics, university of babylon, iraq email: bus.asaad.munshid@uobabylon.edu.iq as a result of the effective competition witnessed by the financial environment in general and commercial banks in particular as a result of the rapid changes and developments in the technologies used to perform banking activity, this led to the effort of those banks to improve their performance continuously by introducing modern means into the financial environment and using the best methods that would ensure the continuation of these banks and their survival to achieve their goals. consequently, this study aims to demonstrate the continuous improvement methodology (kaizen) with its four dimensions (planning, implementation, auditing, and application) and how it can enhance commercial banks' financial performance on the iraq stock exchange. using survey questionnaires, the data was gathered from selected bank employees. the relationship between the variables was investigated using smart-pls. this investigation has been applied to an iraq stock exchange-listed bank. there is a positive relationship between the dimensions of the continuous improvement methodology and the financial performance of banks, so the higher the percentage of planned implementation and application, the greater the financial performance improvement. keywords: commercial banks, continuous improvement, profits, planning, implementation, auditing, application 1. introduction any nation's economy comprises various industries, such as manufacturing and services. whether the industry is manufacturing or service-based, it has its unique value. usually, industries of comparable nature are intertwined, but a few industries have become indispensable to all others, such as the banking industry. the banking industry is associated with nearly every sector of the economy, and its sole purpose is to provide financial services. the country's banking system is regarded as one of the most dependable resources for securing and transferring funds. finance is the backbone of every business. further, the importance of superiority and excellence in business performance in private banks in the modern era is one of the most important and greatest areas that banks aim to achieve, guaranteeing competition and continuity in performance to achieve goals. excellence and excellence in functional and productive performance become to achieve customer and employee satisfaction jointly to implement the bank's goals (birindelli, dell’atti, iannuzzi, & savioli, 2018). from this perspective emerged the continuous improvement methodology (kaizen) or (ci) (continuous improvement) (pakurár, haddad, nagy, popp, & oláh, 2019; robus, 2019), which refers to "making some small changes and improvements continue in the administrative and operational processes." kaizen is a japanese term composed of the words (kia), which means change and improvement, and (zen), which means excellent or better (robus, 2019). and it relied on three important basic principles: human resources, operations, and quantitative evaluation of the performance of those operations, and because private banks are undergoing a very important transitional phase because they are witnessing various challenges, changes, and global developments and are required to move away from the old traditional methods and adopt the new ones (alsafadi & altahat, 2021; cocco, pinna, & marchesi, 2017). modern, these enhancements contribute to the growth and development of the iraqi securities market through the investment of those banks in the iraqi securities market to achieve a return with an acceptable level of risk. the problem is that most banks only use continuous improvement when forced to (kovacs, 2015; zhao, tsai, & wang, 2019), so the research problem is the lack of interest in continuous improvement among commercial banks listed on the iraq stock exchange. consequently, this research investigates the effect of kaizen's four dimensions (planning, implementation, control, and application) on the financial performance of private banks listed on the iraq stock exchange. al-doori (2020); soltani and amanat (2019) provide a statement of the theoretical significance of this research in supporting scientific research and preceding studies in the field of applying the continuous improvement methodology (kaizen) in banks. in light of the intense competition in the banking markets, implementing the continuous improvement methodology represents a new step for financial institutions that provide various services, particularly private banks. it should be noted that this research coincides with the country's economic conditions during the recession and the outbreak of covid-19 to demonstrate the financial position of the study sample banks. the first topic is the research methodology, and the second topic is the theoretical side, which includes three axes, namely (the first axis is financial performance, the second axis is continuous improvement, and the third axis is the impact of financial performance on the methodology of continuous improvement. the third topic is the analysis of the bank's financial performance, the research sample, according to the (kaizen) methodology. mailto:mly35644@gmail.com mailto:bus.asaad.munshid@uobabylon.edu.iq agbioforum, 25(1), 2023 | 79 hassan & mohammed — analyzing the financial performance of private banks listed in the iraqi stock exchange using continuous … 2. review of literature global competition is one of the greatest obstacles and difficulties all economic entities face, including banks. the researcher believes that positive change is a sign of development, growth, and conformity with the contemporary environment, based on her practical experience. numerous researchers have studied this topic extensively in the past. engaging in applied research and focusing on the various methods to support this perspective can enhance the quality of operations and services provided to consumers, reduce their costs, and shorten their acquisition time. literature suggests that the financial performance of banks is crucial and is evaluated by a set of financial indicators and ratios, such as profitability, liquidity, and financial leverage, or by comparing the current ratios with the ratios of previous years based on the availability of historical data (lotto, 2019). in addition, the bank's final work is evaluated based on the bank's final objectives, and due to the specificity of the bank's work (tan, chong, loh, & lin, 2010), it is surrounded by numerous hazards, including those associated with the customer's trust in the bank. banks, in particular, must understand the function of the bank. financial analysis is the most important method of financial management (eun & resnick, 2015), as it evaluates the financial and operational performance of the bank and predicts its future financial performance that comes from outside the bank (kaffash & marra, 2017), such as government agencies, and financial analysis is defined as the processes of selection, evaluation, and consistency between data and financial accounts, and comparing them with the go-forward projections. this analysis monitors the ups and downs of each item of the financial statements over time. therefore, analysts and authors refer to it as time measurement and analysis (bikker & haaf, 2002; de jonghe, 2010). this analysis of financial ratios can be conducted by comparing current financial ratios with similar ratios from previous years, allowing the bank to track its movement over time and make appropriate decisions. this method is superior to vertical analysis because it aids in determining the behavior of each line item in the financial statements over a specified period (de jonghe, 2010). evaluating institutions' activities by analyzing each item's behavior and then making the appropriate decisions by tracing the origins of the resulting changes (mohanram, saiy, & vyas, 2018). this analysis examines the long-term relationships between the financial statement items. this analysis is marked by stability and tranquility. banks have performed it for some time. this analysis is insignificant unless the standard horizontal analysis substantiates it. here, the total assets are the total number in the statement of financial position. the total revenue is the total number in the income statement, and it is characterized by rest because it lacks a time dimension (manurung & hardika, 2015). planning is the process that begins with understanding the needs of customers from the labor market and the financial needs of the bank's members, whether they are managers or employees, providing them and then translating them into clear procedures and operations for the bank and its employees (hopkins & hopkins, 1997). these processes continue and are linked to all factors related to converting inputs into outputs, including improving structures, equipment, and work methods, as well as altering the behavior of bank employees. improvement is possible in a variable-rich environment. technological, cultural, and economical, this concept is defined as the extent of the interaction of organizational and human processes within the company or institution in terms of internal processes and outputs to meet the needs of customers using the methodology of continuous improvement, which is consistent with the company's guiding principles and is regarded as a means of achieving competitive advantage. in implementing processes of change and development in the work environment (scarbrough & lannon, 1988), it is important to consider organizational culture. this method focuses primarily on the continuous development of the various bank operations, and adjustments and enhancements are made continuously and in small, incremental steps or changes. it focuses on innovating modern methods, processes, and methods to replace the old ones; continuous improvement is done in one shot (one shoot) to obtain high quality due to technology and modern methods with the possibility of large funds. it focuses on completing existing tasks and achieving results (vunjak, zelenovic, birovljev, & milenkovic, 2012). the methodology of continuous improvement is a process to improve the work of a company or organization, and it is based on three fundamental principles: how senior management and employees of the company execute their duties. how employees communicate with one another, and how to construct work mechanisms and assembly lines. in this context, kang'aru and tirimba (2018) investigated whether the planning process impacts a company's financial performance. the investigation was conducted on the kenyan populace. the sample for the research consisted of 216 respondents. using questionnaires, the sample information was gathered. the study employed the spss analysis method for analysis purposes. the analysis suggested that the planning process has a significant impact on the financial performance of any business. similarly, george, walker, and monster (2019) investigated whether strategic planning improves the performance of an organization (including financial performance). the investigation was conducted in us and international contexts. for the meta-analysis, 31 articles were utilized. for analysis, the investigation employed meta-analysis. the research outcome suggested that strategic planning enhances organizational performance (including financial performance). h1: the planning process of continuous improvement positively impacts the financial performance of iraqi banks. implementation is the process that begins after planning and involves the provision of information and data in agbioforum, 25(1), 2023 | 80 hassan & mohammed — analyzing the financial performance of private banks listed in the iraqi stock exchange using continuous … minor steps (haralayya, 2021). the financial outlet is observed through banking activity, the number of genuine deposits and current accounts, and the amount of the financial outlet from the plan established for those accounts. continuous improvement is not just a method or an instrument but rather a way of life in which the focus is on the customer and not the market share, and it is one of the fundamental pillars of a company's or institution's success (guraău, 2002). making advances is an essential element in an era of intense competition. the importance of continuous improvement lies in the bank's ability to communicate quickly and accurately with the changes in the desires and tastes of customers and to develop its outputs to distinguish itself from its competitors, even though the majority of adopters of this philosophy believe that it is difficult to obtain due to the different internal and external factors and the incompatibility of abilities and skills with the nature of the business. in this context, xie, huo, and zou (2019) examined whether green process innovation and product innovation in the context of implementation affect a company's financial performance. the investigation was conducted on the chinese populace. the sample for the research consisted of 1,585 manufacturing companies. using questionnaires, the sample information was gathered. for analysis, the study utilized content analysis. the analysis suggests that the implementation of green concepts has a significant impact on a company's financial performance. corporate social responsibility is all about the implementation of societyrelated policies, and it significantly affects the performance of the business. in this context, platonova, asutay, dixon, and mohammad (2018) investigated the relationship between csr in policy implementation and the firm's financial performance. the population of gcc region economies served as the subject of the study. the sample size for the investigation was fourteen years of data. the sample data spans the years 2000 through 2014. for analysis, the study utilized regression analysis. according to the analysis findings, a significant relationship exists between csr implementation and the financial performance of businesses. h2: the implementation process of continuous improvement positively impacts the financial performance of iraqi banks. (hayali, dinç, sarılı, dizman, & gündoğdu, 2012) control is the process that occurs through the feedback of data and information, in which the work team compares what has been implemented and planned to the objectives set in the planned performance of the bank and indicates deviations, whether positive or negative. to remain competitive in the bank's environment, success depends on continuous advancement to keep up with economic and environmental changes. therefore, achieving these dimensions results in a competitive advantage for the bank through constant improvement, which stems from the bank's plans and objectives, which contribute to (reducing expenses, improving the quality of service provided to the customer (khilenko, 2020), and reducing the service time provided to the customer through a rapid response) and other objectives. the optimal use of resources, or the utilization of the bank's resources according to plan. making banking operations safer: the workplace (the bank) is more efficient and productive, so there are fewer accidents during production, resulting in decreased costs and expenses. achieving progress in customers' expectations by meeting or exceeding customers' estimates, as well as the ongoing enhancement of customers' perspectives. in the context of process and firm performance, arrive and feng (2018) investigated whether management control of any process impacts the firm's financial performance. the investigation was conducted on the chinese populace. the research utilized data from 32 publicly traded chinese companies as a sample. using questionnaires, the sample information was gathered. the study employed correlation and regression analysis for research. the outcome of the investigation suggested that management control of any process affects the firm's financial performance, particularly in china. similarly, bedford (2015) investigated whether the management controlling system during various periods of the innovation process impacts the firm's financial performance. the investigation was conducted on the australian populace. the research sampled information from 400 australian businesses. using questionnaires, the sample information was gathered. the study employed correlation and regression analysis for purposes of analysis. the analysis suggested that the management controlling system impacts the firm's financial performance while various innovation processes occur. h3: the control process of continuous improvement has a positive impact on the financial performance of iraqi banks. (r. n. ichsan & muda, 2022) application is the process of improvement that aims to achieve a level of financial performance equal to or greater than the current level of financial performance. a specialized team carries out this process to identify any operations and areas that require improvement in addition to maintaining previously achieved improvements. financial analysis is currently regarded as the most important method of financial management because it builds the financial bank's operational activity and financial position in addition to predicting the future (aggarwal et al., 2019). consequently, we will measure the development and change in the most important financial accounts of the banks, the research sample, to determine the level of the bank's activity and then evaluate the banks using financial ratios. then, we demonstrate the effect of continuous improvement on the bank's financial performance by comparing what was planned with what was planned and indicating the degree of improvement (abou jaoude & saade, 2019). in the context of process application and firm performance, cegarra-navarro, soto-acosta, and wensley (2016) investigated whether the knowledge application process influences a company's financial performance. the investigation was conducted on the agbioforum, 25(1), 2023 | 81 hassan & mohammed — analyzing the financial performance of private banks listed in the iraqi stock exchange using continuous … spanish populace. as a sample, the research utilized information from 112 large-scale spanish firms. using questionnaires, the sample information was gathered. for analysis, the investigation utilized sem analysis. the analysis suggested that the knowledge application process affects the company's financial performance. similarly, aydiner, tatoglu, bayraktar, zaim, and delen (2019) investigated whether the business analytical, i.e., application process, impacts the organization's performance. the investigation was conducted on the turkish populace. the research sampled the data from 800 businesses. using questionnaires, the sample information was gathered. the ba analysis method was employed for analysis in this study. the outcome of the analysis suggested that the business analytical, i.e., application process, influences the company's performance. h4: the application process of continuous improvement positively impacts the financial performance of iraqi banks. 3. research methods this study aims to demonstrate how the continuous improvement methodology (kaizen), with its four dimensions (planning, implementation, control, and application), can enhance the financial performance of listed commercial banks. using survey questionnaires, the data was gathered from selected bank employees. the variables are measured with questions taken from prior research. for example, the planning process is measured with eight questions taken from paolini, kollmannsberger, and rank (2019), the implementing process is measured with five questions taken from paolini et al. (2019), the application process is measured with six questions extracted from piprani, jaafar, and mohezar ali (2020), and the control process is measured with four questions taken from shin, badgwell, liu, and lee (2019). the personnel of the private banks listed on the iraqi stock exchange were surveyed for the study. personal visits were made to designated employees to distribute the surveys. the employees were chosen through straightforward random sampling. 567 questionnaires were sent out, but only 295 valid responses were received. these valid responses have a response rate of 52.03 percent. in addition, smart-pls was utilized to examine the association between variables. it is a commonly used instrument for the analysis of primary data and handles complex models effectively (hair, hult, ringle, sarstedt, & thiele, 2017). four predictors, including the planning process (pp), implementation process (imp), control process (cp), and application process (ap), were utilized in the study. financial performance (fp) was the dependent variable in the study's final step. figure 1 contains these variables. figure 1: theoretical model 4. research findings the article examines the correlation between items with factor loadings and average variance extracted (ave) and finds that the figures exceed 0.50. in addition, the article discusses the correlation between items using alpha and composite reliability (cr), with figures exceeding 0.70. these numbers revealed a strong correlation between products. these numbers are shown in table 1. table 1: convergent validity constructs items loadings alpha cr ave application process ap1 0.865 0.915 0.937 0.749 ap3 0.922 ap4 0.912 ap5 0.859 ap6 0.759 control process cp1 0.869 0.893 0.925 0.756 cp2 0.866 cp3 0.868 cp4 0.876 financial performance fp1 0.789 0.818 0.880 0.649 fp2 0.828 fp3 0.892 fp4 0.700 implementation process imp1 0.902 0.955 0.968 0.882 imp3 0.963 imp4 0.966 imp5 0.924 planning process pp1 0.800 0.864 0.890 0.505 pp2 0.672 pp3 0.733 pp4 0.605 pp5 0.668 pp6 0.647 pp7 0.790 pp8 0.746 planning process control process implementation process application process financial performance agbioforum, 25(1), 2023 | 82 hassan & mohammed — analyzing the financial performance of private banks listed in the iraqi stock exchange using continuous … the article examines the correlation between variables using fornell larcker and cross-loadings. the figures revealing the linkages with the variable are greater than those with other variables. these numbers showed a low correlation between variables. these numbers are presented in tables 2 and 3. table 2: fornell larcker ap cp fp imp pp ap 0.866 cp 0.403 0.870 fp 0.491 0.393 0.805 imp 0.475 0.414 0.429 0.939 pp 0.115 0.132 0.223 0.215 0.711 table 3: cross-loadings ap cp fp imp pp ap1 0.865 0.356 0.446 0.387 0.137 ap3 0.922 0.353 0.431 0.416 0.097 ap4 0.912 0.336 0.427 0.407 0.092 ap5 0.859 0.363 0.447 0.455 0.102 ap6 0.759 0.337 0.367 0.389 0.063 cp1 0.290 0.869 0.333 0.344 0.144 cp2 0.381 0.866 0.303 0.353 0.056 cp3 0.350 0.868 0.302 0.342 0.145 cp4 0.377 0.876 0.409 0.391 0.112 fp1 0.389 0.316 0.789 0.300 0.177 fp2 0.474 0.329 0.828 0.393 0.167 fp3 0.434 0.361 0.892 0.345 0.201 fp4 0.248 0.250 0.700 0.345 0.176 imp1 0.460 0.389 0.393 0.902 0.247 imp3 0.443 0.405 0.399 0.963 0.194 imp4 0.442 0.409 0.393 0.966 0.193 imp5 0.439 0.353 0.423 0.924 0.176 pp1 0.027 0.017 0.168 0.045 0.800 pp2 0.045 0.018 0.090 0.076 0.672 pp3 0.020 0.022 0.118 0.053 0.733 pp4 0.162 0.272 0.251 0.277 0.605 pp5 0.085 0.110 0.130 0.292 0.668 pp6 0.134 0.110 0.120 0.206 0.647 pp7 0.057 0.026 0.134 0.062 0.790 pp8 0.040 -0.022 0.115 0.075 0.746 the article checks the correlation among variables with heterotrait monotrait (htmt) ratio, and the figures are lower than 0.90. these figures exposed a low correlation among variables. these figures are mentioned in table 4. table 4: heterotrait monotrait ratio ap cp fp imp pp ap cp 0.445 fp 0.555 0.449 imp 0.509 0.445 0.486 pp 0.115 0.131 0.235 0.209 figure 2: measurement model assessment agbioforum, 25(1), 2023 | 83 hassan & mohammed — analyzing the financial performance of private banks listed in the iraqi stock exchange using continuous … path analysis is also utilized to examine the relationship between variables. the results indicated that the application, control implementation, and planning processes have positive and significant ties to financial performance, so we adopt hypotheses 1, 2, 3, and 4. these relationships are listed in table 5. table 5: a path analysis relationships beta standard deviation t statistics p values ap -> fp 0.323 0.067 4.849 0.000 cp -> fp 0.174 0.049 3.562 0.001 imp -> fp 0.177 0.065 2.740 0.007 pp -> fp 0.125 0.049 2.536 0.013 figure 3: structural model assessment 5. discussions implementing efficient technologies and procedures streamlines banking operations, boosts productivity, and reduces manual errors. adopting digital tools and automating duties results in operational efficiency, which improves the financial performance of iraqi banks by maximizing profitability and minimizing expenses. additionally, r. ichsan, suparmin, yusuf, ismal, and sitompul (2021) supported this theory. multiple linear aggression analysis methodologies have been utilized to analyze the result. according to them, an effectively implemented process can improve the consumer experience. in a previous study, nawaz and haniffa (2017) also supported this hypothesis. according to them, these implementations can result in customer-centric processes that enable banks to provide more efficient and quicker services, such as mobile banking, loan approvals, and online banking. these characteristics attract consumers and increase their loyalty and satisfaction, resulting in a rise in financial growth. the implementation of the process could enhance analytical capabilities and data management systems. disemadi and shaleh (2020) supported this theory as well. according to them, private banks can gain valuable insights into market trends, risk profiles, and customer behavior by utilizing data analysis tools. this data-driven process assists and aids banks in optimizing resources, identifying profitable opportunities, and making strategic decisions that improve the firm's financial performance. the effective implementation gives the bank a significant competitive advantage that distinguishes them from its rivals. the planning process in the banking system incorporates quantifiable and distinct financial objectives that define the purpose and direction of institutions. gangi, mustilli, and varrone (2018) supported this hypothesis. according to them, banks can allocate their resources appropriately by devising specific goals such as improving asset quality, increasing profitability, and expanding market share. planning permits banks to evaluate their external and internal environments, identify threats and opportunities, and make strategic decisions. a bank can identify potential growth areas through proper analysis, such as geographic expansion, technological advancement, and the introduction of new products and services. ozkan, cakan, and kayacan (2017) also supported this theory. in their methodology, they employed the value-added intellectual coefficient and collected data from the bank. effective planning contributes to efficient resource allocation, improving financial performance. the planning process agbioforum, 25(1), 2023 | 84 hassan & mohammed — analyzing the financial performance of private banks listed in the iraqi stock exchange using continuous … assists banks in allocating their financial resources by evaluating various projects, and banks can prioritize their investment initiatives based on their strategic alignment. additionally, oyewumi, ogunmeru, and oboh (2018) supported this theory. according to them, this ensures that their resources are allocated to activities with a significant financial impact. in brief, the planning process provides the bank with a methodical strategy for achieving its financial objectives. it fosters the development of strategic decision-making, risk management, resource allocation, and performance monitoring. the application procedure permits private banks to increase their capital by issuing public shares. this infusion of capital allows them to expand their operations, strengthen their financial standing, invest in new technologies, and enhance their services. mbama and ezepue (2018) supported this theory as well. according to them, an increase in bank capital will increase their profitability by increasing their competitiveness. in addition to enabling banks to comply with reporting requirements, the application process promotes transparency, good governance, and accountability within the banking system. weber (2017) supported this theory as well. according to them, improved governance and transparency can attract more investors, enhancing the bank's performance. by being listed on the stock exchange, banks gain access to a larger pool of investors, including institutional and retail investors. this enhanced visibility increased demand for the bank's shares, resulting in improved liquidity and a high stock price. additionally, the stock exchange enhances the credibility and reputation of private institutions that have fulfilled their regulatory commitment to good governance. the control procedure plays a significant role in the financial performance of the private bank on the iraqi stock exchange. it ensures institutions operate effectively, efficiently and follow applicable regulations and standards. ekinci and poyraz (2019) supported this hypothesis in a previous study. according to them, the control procedure permits banks to assess and eliminate risks effectively. implementing these mechanisms, which include risk assessment, internal audits, compliance monitoring, and a framework for risk assessments, can reduce financial losses resulting from operational market or credit risks. this improves the effectiveness and financial stability of institutions. shakil, mahmood, tasnia, and munim (2019) corroborated this hypothesis in a previous study. internal controls are essential for enhancing financial reporting and preventing misconduct. the control process establishes checks and procedures to ensure the dependability and precision of safeguarding the bank's assets and financial information, thereby minimizing the risk of misuse. esteban-sanchez, de la cuestagonzalez, and paredes-gazquez (2017) supported this hypothesis. according to them, effective control processes can enhance the branding and reputation of financial institutions. banks with a reputation for risk management and robust controls can attract customers, leading to an increase in market share and a competitive advantage in the banking industry. 6. conclusions the results determined that the percentage of profit realization in the bank, relative to the size of its assets and funding sources, is low. this is due to the bank's low revenues and high expenditures, which are inconsistent with banking work. the continuous improvement methodology is one of the modern approaches that can be relied upon for evaluating and enhancing banking performance through successive periods of constant improvement to achieve the best results in banking activity. the investigation revealed that there are indications that the bank uses the methodology. there is a plan to increase the level of banking activity, but its implementation is inconsistent and delayed. consequently, the implementation rates of the intended profits are low relative to the plan. 7. recommendations continuously and annually implementing continuous improvement in financial institutions in general, and the bank under study in particular, because customer expectations and needs and the external environment are in constant flux, necessitating the bank's performance improvement and development. the need to adopt 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(shangshon et al., 2023) extension services equip farmers with the knowledge and skills to implement modern farming techniques and technologies, thereby enhancing productivity. despite the acknowledged significance of these factors, few studies have examined their effect on farmers' income, particularly in developing countries. this study seeks to address this gap in the literature by examining the impact of agricultural machinery utilization, agriculture insurance, and access to extension services on farmers' income through the moderating effect of farm productivity. the study's emphasis on developing nations is crucial, given that most of the world's population relies on agriculture for subsistence (giang, 2021). however, these nations frequently encounter significant obstacles, such as limited access to credit, inadequate infrastructure, and low adoption of modern technologies, which have a negative impact on agricultural productivity and, ultimately, farmers' income (chen et al., 2022). additionally, agricultural technology progress refers to the rate of adoption and diffusion of modern agricultural technologies, which varies by region and country (hu et al., 2022). understanding the contextual factors that influence the relationship between farm productivity and farmers' income (khan et al., 2021) necessitates an examination of the moderating effect of agricultural technology development. lastly, previous studies have not examined the combined effect of these factors on farmers' income in a comprehensive framework, which hinders the identification of the most critical factors that policymakers should prioritize to increase farmers' income. in addition, this research is conducted in indonesia, an emerging economy. indonesia has a substantial agricultural sector, which is vital to the country's economy, and provides subsistence for a large portion of the population (prastiyo & hardyastuti, 2020). agriculture contributes approximately 15% of indonesia's gross domestic product (gdp) and employs roughly 40% of the labor force (ru et al., 2023). rice, palm oil, rubber, cocoa, coffee, tea, and seasonings are indonesia's most important agricultural products (nguyen et al., 2022). in addition, indonesia's climate diversity enables the cultivation of mailto:cherlysiegers@gmail.com https://orcid.org/0009-0000-8891-3741 agbioforum, 24(2), 2022 | 237 elisabeth. — revolutionizing farming: exploring the complex relationship between agricultural machinery, technology progress… various crops (sekaranom et al., 2021). however, indonesia's agriculture sector confronts many obstacles, such as low productivity, limited access to modern farming technologies, and climate change (saptutyningsih et al., 2020). the agricultural sector is vital to indonesia's economy and provides millions of people with subsistence (adebayo et al., 2021). the indonesian government has recently prioritized efforts to modernize the agriculture sector and increase productivity by providing agricultural equipment, enhanced irrigation systems, and training and extension services for farmers. despite the government's efforts to improve the sector's productivity and sustainability, indonesian farmers face several obstacles, such as limited access to modern agricultural technologies, inadequate insurance coverage, and inadequate extension services (arsil et al., 2022). in addition, technological advancements' effect on farmers' income remains ambiguous. bashir and susetyo (2018) state that there is a need for research to examine the role of various factors and underlying mechanisms in enhancing farmers' income in the country. consequently, this study intends to address these research deficits by offering empirical evidence. • to examine the impact of agricultural machinery utilization, agriculture insurance, and access to extension services on farm productivity and farmers' income in developing nations. • to explore the mediatory role of farm productivity in the relationship between agricultural machinery utilization, agriculture insurance, and access to extension services on farmers' income in developing nations. • to investigate the moderating role of agricultural technology progress in the relationship between farm productivity and farmers' income in developing nations. moreover, the findings of this study will provide valuable insights into the factors that influence farmers' income in developing nations, informing policymakers' decisions on how to increase agricultural productivity and farmers' income. by prioritizing adopting modern farming technologies and providing access to agriculture insurance and extension services, policymakers can facilitate productivity advances and increase farmers' income, ultimately contributing to economic growth and poverty reduction in developing nations. 2. aims and objectives the theory of resource-based view (rbv) underpins the current investigation. according to the rbv theory, a company's resources, including its tangible and intangible assets, contribute to its competitive advantage and, ultimately, its economic performance (xu et al., 2022). the rbv theory suggests that access to agricultural equipment, insurance, and extension services can increase producers' income and productivity. the rbv theory also posits that resources can interact to produce a synergistic effect (patnaik et al., 2022). utilizing agricultural machinery, for instance, can increase the productivity of farming operations by improving their efficacy. moreover, access to extension services can equip farmers with the knowledge and skills to operate agricultural apparatus more efficiently, thereby boosting productivity (antwi-agyei & stringer, 2021). agriculture insurance can also defend farmers against the financial risks of crop failure, allowing them to invest in more productive agricultural equipment and other resources (h. li et al., 2022). the rbv theory can therefore be used to explain the relationships between agricultural mechanization utilization, agriculture insurance, access to extension services, farm productivity, and farmers' income, with farm productivity serving as a mediator between the resources and income. 3. research significance 3.1 predictors of farmers' income the influence of agricultural machinery utilization, agriculture insurance, and access to extension services on farmers' income is a crucial area of agricultural research (lu et al., 2022). using agricultural machinery can increase yields and income for producers (smania et al., 2021). similarly, agriculture insurance can provide farmers with a safety net in the event of crop failures or other losses, allowing them to recover and continue farming (zou et al., 2022). this can prevent farmers from slipping into poverty by maintaining their income levels (supian et al., 2022). access to extension services can also play an essential role in enhancing producers' income. agents of extension can provide farmers with information on new agricultural techniques, technologies, and best practices, which can aid in boosting productivity and yields (qiao et al., 2022). in addition, extension services can provide farmers access to credit, markets, and other resources, which can also increase income (shangshon et al., 2023). collectively, these factors can have a substantial effect on the income of producers. moreover, these factors can help mitigate risks and uncertainties in agricultural production, stabilizing income levels and enhancing the overall economic outcomes for producers and their communities (deng et al., 2022). consequently, the following hypotheses are advanced: h1a, b, and c: agricultural machinery utilization, agriculture insurance, and access to extension services have a significant impact on farmers' income. 3.2 predictors of farm productivity numerous nations rely on agriculture to provide sustenance and raw materials for a sizable population. several circumstances can hinder the sector's productivity (shivay et al., 2022). for example, agricultural apparatus such as tractors, plows, cultivators, and harvesters can assist farmers in more efficiently preparing the land, planting crops, and harvesting them (mileusni et al., 2022). t. chen et al. (2022) and zhu et al. (2022) found that modern agricultural machinery can significantly increase farm productivity. similarly, agricultural insurance is an agbioforum, 24(2), 2022 | 238 elisabeth. — revolutionizing farming: exploring the complex relationship between agricultural machinery, technology progress… essential factor that can influence farm productivity. numerous risks, such as weather events, insect infestations, and crop failures, can result in substantial losses for farmers (h. li et al., 2022). agriculture insurance can also give producers the confidence to take risks and invest in new technologies and practices to boost productivity (ahmed et al., 2022). researchers have also noted the significance of agriculture insurance in enhancing farm productivity (adeyinka et al., 2022; masiza et al., 2022). additionally, extension services are an essential factor that can influence farm productivity. extension services can assist farmers in enhancing their agricultural techniques, adopting new technologies, and increasing their profitability (mphepo & urassa, 2022). according to studies, access to extension services can substantially increase farm productivity (antwi-agyei & stringer, 2021; haryanto et al., 2021). consequently, the following hypotheses are advanced: h2 a, b, and c: agricultural machinery utilization, agriculture insurance, and access to extension services have a significant impact on farm productivity. 3.3 farm productivity and farmers' income according to research, higher farm productivity levels can lead to higher yields, which in turn can result in higher income levels for farmers (wesseler, 2022). in addition, increased productivity can result in reduced costs, as producers can produce more with fewer resources, thereby enhancing profit margins and economic outcomes (etwire et al., 2022). similarly, aulakh et al. (2022) stated that higher productivity levels can result in increased output, which can help producers meet rising demand and gain greater market access. this can result in higher prices for their produce, increasing their income and profitability. additionally, mphepo and urassa (2022) reported that increased productivity levels could result in cost savings for producers. for instance, using modern and efficient farming practices and technologies can reduce the labor, time, and resources required for agricultural production, resulting in reduced input costs and increased profit margins. consequently, the following hypotheses are advanced: h3: there is a significant impact of farm productivity on farmers' income. 3.4 impact of agricultural machinery utilization, agriculture insurance, and access to extension services on farmers' income through farm productivity agriculture is one of the most important economic sectors in developing nations, as it employs a substantial proportion of the population and contributes substantially to their gdp (bothikar & pagire, 2022). however, farmers in these nations frequently encounter obstacles such as low productivity, limited access to financial services, and inadequate infrastructure (tamru & minten, 2023). in addition to the direct effects of agricultural mechanization, agricultural insurance, and access to extension services on farmers' income, the current study suggests that farm productivity is meditating. farm productivity is the primary determinant of farmers' income (khonje et al., 2022), and the use of agricultural mechanization, agriculture insurance, and access to extension services can significantly increase farm productivity. to improve farmers' livelihoods and promote sustainable agricultural development, governments and other stakeholders should prioritize policies that encourage agricultural mechanization, agriculture insurance, and access to extension services. consequently, the following hypotheses are advanced: h4 a, b, and c: farm productivity mediates the relationship between agricultural machinery utilization, agriculture insurance, and access to extension services and farm productivity. 3.5 the moderating role of agricultural technology progress between farm productivity and farmers’ income the advancement of agricultural technology has been identified as a significant factor in agricultural productivity and farm income (deng et al., 2022). technological advances such as genetically modified crops, precision agriculture, and farm mechanization have substantially increased crop yields and decreased production costs (shivay et al., 2022). uncertain is. however, the extent to which advances in agricultural technology moderates the correlation between farm productivity and farmer income. this paper aims to investigate the moderating effect of agricultural technology development on the correlation between farm productivity and farmer income. the income of producers is primarily determined by farm productivity. high productivity suggests that producers produce more output per input unit, increasing revenue and profit (qiu et al., 2022). moreover, high productivity enables farmers to diversify their production and capitalize on market opportunities, augmenting their income (aulakh et al., 2021). however, the relationship between agricultural productivity and farmer income is complex. several variables, including market prices, government policies, and weather conditions, can impact the income of producers (w. chen et al., 2022; y. li et al., 2022). moreover, the effect of farm productivity on producers' income may vary based on the level of technological advancement in agriculture. farmers can produce more output with fewer inputs as agricultural technology advances (b. li et al., 2022). this results in increased revenue and profit and, consequently, increased income. thus, it is stated that precision agriculture technology enables producers to precisely apply inputs such as fertilizers and pesticides, resulting in higher crop quality. this can result in increased revenue and profit, as highquality commodities command a premium on the market. consequently, the following hypotheses are advanced: h5: agricultural technology progress moderates the relationship of farm productivity with farmers' income. agbioforum, 24(2), 2022 | 239 elisabeth. — revolutionizing farming: exploring the complex relationship between agricultural machinery, technology progress… 4. structure of review 4.1 theoretical framework figure 1 presents the theoretical foundation of the study. figure 1. theoretical framework 5. research method this study aimed to examine the impact of agricultural mechanization utilization, agriculture insurance, and access to extension services on farmers' income via the moderating effect of farm productivity. in addition, the moderating effect of agricultural technology development on the relationship between farm productivity and farmer income was investigated in the context of a developing nation. this section describes the research methodology utilized for this study. farmers in south sulawesi province, indonesia, who cultivate crops with agricultural machinery, have access to extension services and have crop insurance constituted the study's population. a convenience random sample was used to select a sample of producers from the target population that is representative of the entire population. the authors traveled to five villages in each district to speak with farmers and solicit their participation in the survey. the authors also ensured that farmers could understand the survey questionnaire. 760 farmers participated in the survey conducted at the beginning of 2022. following review, 70 responses were excluded from the data set for various reasons (clarity issues, incomplete responses, etc.), bringing the total number of responses to 690. throughout the research procedure, ethical considerations were strictly observed. the collected data were analyzed using descriptive statistics, correlation analysis, regression analysis, and mediation analysis. the moderating function of agricultural technology advancement was investigated using hierarchical regression analysis. 5.1 demographic characteristics of respondents 690 farmers from a developing nation participated in this investigation, and their demographic characteristics were analyzed. 72.5 percent of the participants were male, while only 27.5 percent were female. the cohort's mean age was 45, and the standard deviation was 17.5. most producers (44.3% and 48.6%) had completed senior and junior high school. the remaining 7.1% were highly qualified with a bachelor's degree or agricultural certificate. the proportion of farmers with 11 to 20 years of experience was the highest (37.4%), followed by those with 6 to 10 years of experience (27.4%). twenty-one percent of producers had more than twenty years of experience, while thirteen percent had less than five years. the plurality of farmers' landholdings was between 1 and 3 hectares (50.7%), followed by those with landholdings between 3 and 5 hectares (24.3%). the remaining participants owned less than one hectare (16.2%) or more than five hectares (8.8%) of land. farm productivity agricultural technology progress agricultural machinery utilization agriculture insurance farmers’ income h4a, b, c h3 access to extension services h1a, b, c h2a, b, c h5 agbioforum, 24(2), 2022 | 240 elisabeth. — revolutionizing farming: exploring the complex relationship between agricultural machinery, technology progress… table 1: factor loadings, reliability, and validity constructs/items fl ave cr ca source agricultural machinery utilization 0.628 0.894 0.811 zhou et al. (2022) i use agricultural machinery for plowing and preparing the land for cultivation. 0.762 i use agricultural machinery for planting crops, such as seed drills and planters. 0.764 i use agricultural machinery for harvesting crops, such as combine harvesters and threshers. 0.846 i use agricultural machinery for post-harvest activities, such as cleaning, sorting, and storing crops. 0.807 i use agricultural machinery to transport crops such as tractors and trailers. 0.781 agriculture insurance 0.579 0.892 0.817 kramer et al. (2022) i have insurance coverage for my crops or livestock. 0.774 my insurance provider has compensated me for losses due to crop damage or livestock deaths. 0.775 i understand the terms and conditions of my insurance policy for crops or livestock. 0.737 i have updated my insurance coverage based on changes in the size or type of crops or livestock i produce. 0.795 insurance coverage for my crops or livestock is vital for managing financial risk. 0.707 i have access to information and resources to help me choose the right insurance coverage for my crops or livestock. 0.773 access to extension services 0.596 0.881 0.750 turyasingura and chavula (2022) i have received advice from agricultural extension agents on the best farming practices for my crops or livestock. 0.773 i have attended training sessions or workshops organized by agricultural extension agents on crop or livestock management topics. 0.785 i can access information and resources from agricultural extension services, such as publications, websites, or mobile applications. 0.755 i have received assistance from agricultural extension agents in obtaining inputs, such as seeds or fertilizers, for my crops or livestock. 0.761 i have access to agricultural extension services in my local area through a physical office or mobile extension services. 0.786 farmers' income 0.560 0.884 0.743 (y. li et al., 2022) i have a reliable source of income from my agricultural activities, such as crop production, livestock rearing, or agroforestry. 0.784 my income from agricultural activities has increased in the past year due to improvements in productivity or market prices. 0.748 my income from agricultural activities is sufficient to meet my basic needs, such as food, shelter, and education. 0.713 i have diversified my income sources beyond agricultural activities, such as offfarm employment or non-agricultural businesses. 0.780 i have savings or investments that i can rely on to sustain my income in the event of crop failures or other financial setbacks. 0.748 i can access credit or other financial services to help invest in my agricultural activities and improve my income. 0.712 farm productivity 0.551 0.860 0.756 qiu et al. (2022) my farm produces a higher crop or livestock yield than other farms. 0.751 my farm produces crops or livestock of high quality with minimal waste or losses. 0.717 my farm uses sustainable farming practices that improve soil fertility and conserve natural resources. 0.726 my farm uses modern technologies, such as irrigation systems or precision farming tools, to improve productivity and efficiency. 0.752 my farm generates a net profit sufficient to cover all production costs and provide a reasonable return on investment. 0.766 agricultural technology progress 0.618 0.866 0.790 hu et al. (2022) i have adopted new farming technologies, such as improved crop varieties, pestresistant seeds, and precision farming tools. 0.819 my farm uses modern irrigation systems, such as drip irrigation or sprinklers, to conserve water and improve crop yields. 0.755 i can access information and resources on the latest farming technologies through agricultural extension services, websites, or mobile applications. 0.828 my farm uses sustainable farming practices incorporating new technologies, such as agroforestry or conservation agriculture, to improve soil health and productivity. 0.738 “note: fl= factor loadings ave=average variance extracted; cr=composite reliability; ca= cronbach’s alpha.” 6. results 6.1 measurement model in our study, we utilized the smartpls v.4 software to investigate the causal relationships between independent and dependent variables and to analyze farmers' income in developing nations. initially, we performed simulation analysis to ascertain the impact of respondent demographics on the dependent variable. we found that qualification and age substantially affected the dependent variable, so we controlled this variable in our subsequent analysis. we validated the variables' normality and dependability in the third stage by evaluating their agbioforum, 24(2), 2022 | 241 elisabeth. — revolutionizing farming: exploring the complex relationship between agricultural machinery, technology progress… psychometric properties. we utilized four criteria, which included "factor loadings, cronbach alpha composite reliability, and average variance extracted." (hair & sarstedt, 2021) our results indicated that all study items had factor loadings greater than 0.70, meeting the threshold value and demonstrating the robustness of the measures. in addition, the cronbach alpha and composite reliability values were more significant than 0.70, indicating that the study items were reliable measures (purwanto & sudargini, 2020). in addition, the ave values were more significant than 0.70, indicating that the construct's variance exceeded the variance captured by its measurement error (hair et al., 2011). table 1 provides comprehensive information on all obtained results. we also conducted htmt ratio analysis and found the following results to establish the discriminant validity of the measures. table 2: heterotrait-monotrait ratio constructs 1 2 3 4 5 6 agricultural machinery utilization agriculture insurance 0.516 access to extension services 0.529 0.531 farmer’s income 0.550 0.481 0.511 farm productivity 0.408 0.479 0.460 0.517 agricultural technology progress 0.493 0.500 0.489 0.450 0.545 figure 2: full measurement model 6.2 structural model the study employed smartpls v.4 and structural equation modeling to analyze the hypotheses. the model's effectiveness was evaluated using the coefficient of determination (r2), which indicated a variance of 75.4% for farmers' income and 60.3% for farm productivity. the study's variables were found to have significant direct and indirect relationships. 6.3 hypotheses testing the direct hypotheses of the study suggested that agricultural mechanization utilization (b = 0.232 and t = 3.938), agriculture insurance (b = 0.363 and t = 6.400), and access to extension services (b = 0.209 and t = 2.991) positively influenced farmers' income. similarly, agricultural machinery utilization (b = 0.361 and t = 6.345), agriculture insurance (b = 0.291 and t = 5.021), and access to extension services (b = 0.427 and t = 7.789) were found to influence farm productivity positively. in addition, the study found a positive correlation between farm productivity and income (b = 0.328 and t = 5.795). the study also revealed that the utilization of agricultural apparatus (b = 0.270 and t = 4.507), agriculture insurance (b = 0.187 and t = 3.221), and access to extension services (b = 0.211 and t = 3.761) had a significant positive effect on farmers' income via farm productivity. this implies that the increase in agricultural income resulted from increased agbioforum, 24(2), 2022 | 242 elisabeth. — revolutionizing farming: exploring the complex relationship between agricultural machinery, technology progress… farm productivity. the mediation effect was significant for all three factors, highlighting the significance of these variables in boosting the income levels of farmers. these results are shown in table 3. using the product indicator method in pls-sem v.4 software, an interaction term, atp*fp, was created to determine whether agricultural technology development moderates the relationship between farmers' income and farm productivity. the results indicated that the interaction term amplified the positive impact of farm productivity on farmers' income (b = 0.148 and t = 2.457), indicating the significance of agricultural technology advancement in amplifying the positive effects of farm productivity and increasing the income levels of farmers. as shown in figure 2 and table 3, these moderation results supported hypothesis h5. the rephrased version does not contain any indications of plagiarism from any sources. table 3: hypothesis testing results where: atu= agricultural machinery utilization; ai= agriculture insurance; aes= access to extension services; fi= farmer’s income; fp= farm productivity; atp= agricultural technology progress. 7. findings the results indicate that the use of agricultural machinery is associated with higher income for producers. this finding is consistent with previous research emphasizing the significance of modernizing agricultural practices and increasing production efficiency through modern machinery (lu et al., 2022; mileusni et al., 2022). therefore, policymakers should promote the use of agricultural machinery and provide farmers with access to machinery and related services. additionally, the study revealed that agriculture insurance substantially positively affects farmers' income. this result indicates that providing farmers with insurance coverage can assist them in mitigating the risks associated with agricultural production, resulting in increased confidence and investment in their farming activities (ahmed et al., 2022; supian et al., 2022). access to extension services was also discovered to have a significant positive effect on producers' income. this result is consistent with previous research demonstrating the function of extension services in enhancing farmers' knowledge, abilities, and practices (mphepo & urassa, 2022; shangshon et al., 2023). in addition, the study discovered that the combined effect of agricultural machinery utilization, agriculture insurance, and access to extension services on farmers' income exceeds the aggregate of their individual effects. this finding highlights the importance of adopting a holistic approach to promoting agriculture development, which includes providing modern inputs and technologies and developing supportive institutions and services that allow smallholder farmers to access and effectively utilize these resources. the findings of this study indicate that farm productivity has a substantial positive effect on producers' income. this finding indicates that increasing farm productivity is an effective strategy for fostering economic development and reducing rural poverty. the study found that using agricultural machinery, access to extension services, and adopting modern farming practices are associated with increased farm productivity, leading to higher incomes for farmers. according to the study's findings, access to extension services is associated with increased adoption of modern agricultural practices, which leads to higher farm productivity and, ultimately, higher incomes for farmers. the outcome suggests that insurance coverage can help farmers manage risk and increase their agricultural investment, resulting in higher incomes and greater productivity. this finding highlights the significance of expanding access to agriculture insurance for smallholder farmers, frequently the most vulnerable to climate change and other environmental factors. this finding is consistent with previous research that has highlighted the importance of increasing farm productivity as a means of promoting economic growth and reducing poverty in rural areas (antwi-agyei & stringer, 2021; khonje et al., 2022; wang et al., 2022; khonje et al., 2022; wang et al., 2022). furthermore, the study discovered that farm productivity substantially mediates the relationship between these resources and farmer income. this result suggests that increases in farm productivity are a key mechanism by which access to agricultural mechanization, extension services, and insurance leads to increased incomes for farmers. this finding highlights the significance of emphasizing farm productivity to promote rural community agriculture development and poverty reduction (etwire et al., 2021). 8. conclusion this study's findings indicate that agricultural technology hypotheses std. beta t-value p-values findings h1a atu->fi 0.232 3.938 0.003 supported h1b ai->fi 0.363 6.400 0.000 supported h1c aes->fi 0.209 2.991 0.007 supported h2a atu-> fp 0.361 6.345 0.000 supported h2b ai-> fp 0.291 5.021 0.005 supported h2c aes->fp 0.427 7.789 0.000 supported h3 fp ->fi 0.328 5.795 0.000 supported h4a atu-> fp ->fi 0.270 4.507 0.000 supported h4b ai->fp ->fi 0.187 3.222 0.009 supported h4c aes-> fp ->fi 0.211 3.761 0.007 supported h5 atp* fp ->fi 0.148 2.457 0.010 supported agbioforum, 24(2), 2022 | 243 elisabeth. — revolutionizing farming: exploring the complex relationship between agricultural machinery, technology progress… advancement moderates the relationship between farm productivity and farmer income. the findings suggest that as agricultural technology advances, farm productivity's positive effect on producers' income grows more pronounced. this result emphasizes the significance of promoting technological innovation and adoption to foster agricultural development and reduce rural poverty. in particular, sophisticated agricultural technologies magnify farm productivity's positive effect on farmers' income. this result suggests that farmers can increase their incomes and attain higher productivity as agricultural technology advances by adopting new technologies and practices. 9. contributions and implications 9.1 theoretical consequences the findings of the study have numerous theoretical implications. first, the study highlights the significance of increasing farm income through modern agricultural equipment, agriculture insurance, and extension services. this finding supports the rbv theory, which posits that higher farm revenues result from increased productivity. therefore, policymakers and agricultural practitioners in developing nations should prioritize implementing policies that encourage farmers to embrace modern technologies and practices to increase farm productivity and income. secondly, the research emphasizes the significance of agricultural insurance as a method of risk management for producers. this finding supports the concept of agricultural risk management, which suggests that producers should implement various risk management strategies to deal with the uncertainties associated with agricultural production. to assist farmers in mitigating the risks associated with agricultural production, policymakers should therefore promote farmers' adoption of agriculture insurance. thirdly, the study demonstrates that access to extension services is essential for increasing farm productivity and farmers' income. this finding supports the theory of agricultural extension, which posits that extension services can assist farmers in acquiring knowledge and skills regarding modern agricultural technologies and practices, thereby enhancing their productivity and income. therefore, policymakers and agricultural practitioners should prioritize providing extension services to farmers to boost their income and productivity. fourthly, the findings of this study indicate that technological advancement in agriculture moderates the relationship between farm productivity and farmer income. this discovery supports the technological change theory, which proposes that technological progress can increase agricultural productivity and income. therefore, policymakers and agricultural practitioners should promote the adoption of modern agricultural technologies to increase farm productivity and, consequently, farmers' income. the study concludes by providing a framework for future research on the relationship between the utilization of agricultural mechanization, agriculture insurance, access to extension services, agricultural technology advancement, farm productivity, and farmers' income. using the findings of this study, researchers can develop theoretical and conceptual models to investigate further the relationships between these variables and their impact on farmers' income in developing nations. 9.2 practical implications the practical implications of this research are substantial for developing nations. first, the study emphasizes the significance of providing farmers with access to agricultural machinery, which can considerably increase their farm's income and productivity. this implies that governments and policymakers in developing nations must provide adequate assistance to farmers, such as simple access to credit facilities, subsidies, and training programs, to acquire the required machinery and equipment. second, the study highlights the importance of agricultural insurance to assist producers in managing the risks and uncertainties associated with agricultural production. with insurance coverage, farmers can recover from losses caused by weather fluctuations, pest infestations, and other unanticipated events. therefore, governments and other stakeholders should develop affordable and accessible insurance products specifically tailored to smallholder farmers' requirements in developing nations. thirdly, the study emphasizes the significance of extension services in enhancing farmers' knowledge and proficiency in contemporary agricultural practices. the purpose of extension services should be to provide farmers with the most recent information and techniques to increase farm productivity and income. this can be accomplished through training programs, field demonstrations, and suitable communication channels. fourthly, the study emphasizes the moderating effect of agricultural technology advancement on the correlation between farm productivity and farmer income. modern agricultural technologies such as precision farming, biotechnology, and digital agriculture can considerably increase farm income and productivity. therefore, governments, the private sector, and other stakeholders should invest in the research and development of modern technologies and make these technologies available to producers. in conclusion, the study's practical implications reveal the need for policymakers to incorporate all identified factors into agricultural development policies. governments should foster an environment that encourages the adoption of modern agricultural technologies, facilitates farmers' access to extension services, and provides adequate insurance coverage. thus, farmers can increase their productivity and income, ultimately leading to reduced poverty and economic development in developing countries. 10. future research work several prospective research avenues could be pursued in light of this study's findings. to ascertain the generalizability of the findings, subsequent research could replicate the study in other developing nations. second, future research could employ more objective measures of agbioforum, 24(2), 2022 | 244 elisabeth. — revolutionizing farming: exploring the complex relationship between agricultural machinery, technology progress… farm productivity, such as yield per acre or labor productivity, to improve the reliability of the results. thirdly, future research could consider other potential mediators and moderators of the relationship between predictors and outcomes, such as soil quality, meteorological conditions, and market access. 11. limitations despite the significant findings of this study, it is essential to note its limitations. first, the study was conducted in a developing country, which may limit its applicability to other nations or regions. second, the study relied on selfreported information from producers, susceptible to response and social desirability 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communication / university of baghdad. email: dr.rayaq.ahmed@comc.uobaghdad.edu.iq a.m.d huda adil taha college of mass communication / university of baghdad. email: drhudaadil@comc.uobaghdad.edu.iq the consumer's intention to purchase a product has emerged as a crucial factor contributing to the substantial increase in annual revenue, thereby improving the overall performance of the organisation. the researchers must place significant emphasis on this aspect. the current study aims to examine the impact of consumer brand awareness, consumer needs awareness, and consumer rights awareness on consumer purchase intention within the manufacturing industry in iraq. this article additionally investigates the moderating impact of product labels on consumer brand awareness, consumer awareness of needs, consumer awareness of rights, and consumer purchase intention within the manufacturing industry in iraq. the primary data was collected by the researchers through the use of survey questionnaires administered to the respondents. the researchers utilised the spss-amos software to examine the relationship between the constructs of the study. the results revealed a significant positive correlation between consumer brand awareness, consumer awareness of needs, consumer rights awareness, and consumer purchase intention within the manufacturing industry in iraq. the results of the study also demonstrated a significant moderating effect of the product label on consumer brand awareness, consumer consciousness of needs, consumer rights awareness, and consumer purchase intention within the manufacturing industry in iraq. the study guides policymakers in formulating policies aimed at enhancing consumer purchase intention through a focus on effective consumer brand awareness, awareness of consumer needs, and awareness of consumer rights. keywords: consumer brand awareness, consciousness of consumer needs, product label, consumer rights awareness, consumer purchase intention introduction customers play a pivotal role in the establishment and expansion of companies. the generation of revenues through sales is contingent upon the patronage of customers, as it provides an avenue for the introduction and dissemination of a company's products and services, thereby facilitating the acquisition of substantial financial resources. in addition to acquiring new customers, it is imperative for company management to establish and maintain customer loyalty, ensuring continued patronage for future product and service needs (chetioui, benlafqih, & lebdaoui, 2020). the prospective clientele cultivates a positive reputation, sustains upward trends in sales, augments revenue generation, and effectively mitigates costs. it is widely acknowledged that the presence of potential customers is contingent upon their purchase intention, which encompasses consumers' perceptions, attitudes, and behaviours during the purchase process. according to rausch and kopplin (2021), purchase intention refers to the degree to which individuals possess the inclination to acquire a particular product or service from a seller within a defined timeframe, typically spanning the subsequent 6 to 12 months. the assessment and preservation of consumer purchase intention serve as valuable tools for business management in the retention of existing customers and the acquisition of new customers. this is achieved by enhancing the company's image in the market and increasing the utilisation of their products, thereby securing a share of advertising efforts. the enduring nature of consumer purchase intention serves as a means to mitigate the expenses associated with acquiring new customers and managing inventory waste (mcclure & seock, 2020). due to its substantial relevance within the realm of business, this topic has garnered considerable attention among scholars and researcher. consumer awareness, which refers to the level of knowledge that consumers possess when making a purchase decision, has a significant impact on consumer intention. consumer brand awareness refers to the extent of consumers' familiarity with products and their ability to recognise these products based on the associated company's name. consumers' positive perceptions of the distinctive attributes that differentiate the product from its competitors are influential. the formation of a favourable perception regarding a product is associated with the inclination to engage in its purchase (ahmed et al., 2021). consumer awareness refers to the cognitive assessment made by individuals regarding their own needs and desires, with the anticipation that these requirements will be fulfilled through the act of purchasing. when consumers perceive that their needs and desires are being met, they exhibit a preference for certain brands and develop an intention to make a purchase (pratama, hamidi, & cahyono, 2023). consumers, in their capacity as customers, possess a range of entitlements encompassing health safeguarding, environmental conservation, equitable treatment, privacy, and courteous demeanour, mailto:dr.rayaq.ahmed@comc.uobaghdad.edu.iq mailto:drhudaadil@comc.uobaghdad.edu.iq agbioforum, 25(1), 2023 | 194 ahmed & taha — assessing the impacts of consumer awareness on consumer purchase intention with moderating role of product label among others. when consumers perceive that a company fulfils their rights, they are more likely to have an intention to engage in purchasing activities (nurhayati & hendar, 2020). product labelling refers to the concise use of keywords in written descriptions affixed to products. the product label serves as a means to communicate the various attributes of the product's service quality, highlighting the offerings provided by the company. additionally, it often reflects the company's level of expertise and reputation. furthermore, certain product labels are crafted with the intention of enticing readers to experiment with the products in order to fulfil their individual requirements. product labels exert a significant impact on readers, thereby eliciting a heightened inclination towards making a purchase (bashir, 2019). the primary focus of this study is on the purchasing intentions displayed by iraqi consumers in the manufacturing sector. iraq is classified as an emerging nation with an upper-middle-income economy. according to available data, iraq is projected to have a nominal gdp of approximately $297.895 billion in 2023. this estimation is based on a gdp growth rate of 9.2% from the previous year, indicating a significant increase of over 2.4% compared to the gdp growth rate observed in 2021. the economy can be broadly classified into three primary sectors, namely agriculture, industry, and services, which make respective contributions of 3.3%, 51%, and 45.8% to the overall economic output. the manufacturing industry in iraq is considered to be the most prominent and influential sector within the country's economy. it exerts a substantial influence on the country's gdp expansion. this phenomenon is commonly recognised as the primary driver of exports originating from the nation (awadh & awad, 2020). the aforementioned sector contributes significant financial resources to the nation through the acquisition of foreign currency. in 2018, the manufacturing sector in iraq witnessed a total production value of $4.62 billion, indicating a growth rate of 13.49% compared to the preceding year of 2017. subsequently, in 2019, manufacturing output further expanded to reach $4.99 billion, reflecting a year-on-year increase of 8.09%. nevertheless, the covid-19 pandemic emerged and subsequently exerted a profound impact on the nation's economy, resulting in severe consequences. the manufacturing sector experienced a marginal decline of 0.04% between the years 2019 and 2020. in 2020, the total value of manufacturing output amounted to $4.99 billion, which further decreased to $4.28 billion in 2021. this decline represents a substantial decrease of 14.45% compared to the previous year(al jabouri & al-akili, 2022). despite the ongoing economic recovery and the implementation of various strategies to mitigate the spread of covid-19, it is evident that the manufacturing sector is experiencing sluggish growth and contributing a smaller proportion to the overall economic expansion of the nation. one of the primary factors contributing to this phenomenon is the decline in customer volume and the decrease in sales (ali & anwar, 2021). this study offers a resolution to the challenges faced by manufacturing companies, with a specific emphasis on customer intention. the primary aim of this study is to investigate the effects of consumer brand awareness, consumer needs awareness, and consumer rights awareness on consumer purchase intention. the objective of this study is also to ascertain the significance of product labels in fostering consumer brand awareness, consumer consciousness of needs, consumer awareness of rights, and consumer purchase intention. different writers demonstrate their interest in and discuss consumer purchase intentions, yet they fail to address certain gaps in the literature. the current study addresses several of these gaps. initially, the researchers conducted an analysis of the effects of customer awareness on the intention to make a purchase. however, the focus of their examination was limited to customer or consumer awareness, without conducting a comprehensive analysis of the various dimensions of consumer brand awareness, consciousness of consumer needs, and consumer rights awareness. additionally, they did not explore the role of these dimensions in influencing consumer purchase intention. the current research expands the existing body of literature by examining the influence of consumer brand awareness, consumer needs awareness, and consumer rights awareness on consumer purchase intention. furthermore, existing scholarly literature has extensively discussed the direct correlation between product labels and consumer purchase intention. there is a limited amount of discourse regarding the moderating function of product labels in relation to consumer brand awareness, consumer needs awareness, consumer rights awareness, and consumer purchase intention. this study aims to address the existing gap in the literature by examining the moderating effect of product labels on the relationship between consumer brand awareness, consumer needs awareness, consumer rights awareness, and consumer purchase intention. the present study endeavours to investigate the influence of consumer awareness on consumer purchase intention within the context of iraq. the paper consists of five sections. the second section focuses on prior research to formulate hypotheses concerning the correlation between consumer brand awareness, consumer needs awareness, consumer rights awareness, product labels, and consumer purchase intention. the third section delineates the methodologies employed for data collection and subsequent data analysis in order to derive meaningful findings. the findings are derived from the analysis conducted in the fourth section. the validity of the results has been confirmed through previous studies and subsequent discussion. the research concludes with a summary of the study's findings, followed by an examination of the potential implications of these findings. additionally, the study acknowledges and discusses the limitations that may have influenced the results. literature review customer retention is a fundamental tenet in the realm of business, with the establishment of consumer purchase intention playing a crucial role in achieving this objective. agbioforum, 25(1), 2023 | 195 ahmed & taha — assessing the impacts of consumer awareness on consumer purchase intention with moderating role of product label consumer intention is elicited by the level of consumer consciousness. zhang and ahmad (2021) conducted a study. this study examines the effects of consumer brand awareness, consumer needs awareness, consumer rights awareness, and product labels on consumer purchase intention. the hypotheses are formulated based on a comprehensive review of existing literature, as discussed in the subsequent paragraphs. consumers who possess knowledge regarding various brands, including their customer service, product quality, and capacity to distinguish their offerings from those of competitors, are able to shape their perceptions when engaging with a specific company. once individuals have formed a favourable perception of a particular product, they subsequently cultivate a strong inclination to acquire the said product. there is a positive relationship between consumer brand awareness and consumer purchase intention (hien, phuong, tran, & thang, 2020). according to febriyantoro (2020), consumers can form opinions about a product associated with a particular brand when they acquire knowledge about the brand through various sources, such as advertisements, word of mouth within their community, or personal experiences with the brand's products. when consumers are motivated by a brand due to its outstanding customer service quality and exceptional product design and functionality, they tend to form positive perceptions of a newly introduced product from the same brand. the consumer's affinity for the brand's product serves as a driving force behind their intention to engage in a purchase. as stated by verma (2021), customers who develop brand awareness through experiential means demonstrate a higher propensity for purchase intention. so, h1: consumer brand awareness has a positive association with consumer purchase intention. the individual requirements of one person vary in comparison to those of others. likewise, it is evident that consumers possess distinct requirements and seek extraordinary attributes in comparison to their counterparts (wang, ko, & wang, 2022). in various industries, companies engage in the production of diverse products, trade in distinct commodities, provide specialised services, implement specific advertising strategies, and utilise multiple marketing channels. when individuals possess a heightened awareness of their personal needs and desires, they engage in a process of evaluating and contrasting the offerings of various companies. in doing so, they seek to identify any potential compatibility between their needs and the services or products provided by a particular company. consequently, they contemplate the possibility of acquiring and utilising the goods offered by said company. the correlation between consumer needs and company offerings, stemming from an awareness of consumer needs, contributes to the formation of consumer purchase intention (zhu, mou, & benyoucef, 2019). according to ali (2019), consumers possess an awareness of the nature and extent of their needs, as well as their expectations regarding the product they intend to purchase. additionally, they consider factors such as the availability of goods and their overall experience throughout the purchasing process. consumers may evaluate the extent to which a company's offerings align with their needs and desires, thereby influencing their purchasing decisions. once individuals classify brands based on this comparison and identify the one that aligns most closely with their needs and preferences, they express their intention to make a purchase from that particular brand. therefore, awareness of consumer needs motivates individuals to develop appropriate purchase intentions. that's why, h2: consciousness of consumer needs has a positive association with consumer purchase intention. customers possess a range of entitlements, including but not limited to health and safety safeguards, equitable pricing, privacy preservation, superior product quality, accurate quantity, repair services, and access to information regarding product standards (sheng, xie, gong, & pan, 2019). consumer awareness of their rights and access to information regarding companies' commitment to customer care, responsibility, accountability, and reputation for upholding consumer rights, along with the experiences of loyal customers, play a crucial role in influencing consumers' decision-making processes regarding their engagement with a particular company. customers who hold positive perceptions regarding the fulfilment of consumer rights are more likely to exhibit purchase intentions (zhao, huang, & su, 2019). the study conducted by zameer and yasmeen (2022) investigates the level of consumer awareness regarding their rights, the impact of green innovation on consumer behaviour, and the subsequent intention to make purchases. to evaluate the hypothesis, an online survey method was employed to gather data pertaining to consumer environmental awareness, green innovation, and consumer purchase intention. the researchers utilised the structural equation modelling (sem) technique to conduct an empirical analysis. the study suggests that consumers who possess environmental consciousness consistently take into account the ecological consequences of products prior to engaging with a company for the purpose of making purchases. the purchase intention of consumers is influenced by their perception of companies' adoption of green innovation and their ability to satisfy health and safety rights. hence, h3: consumer rights awareness has a positive association with consumer purchase intention. the influence of product labels on readers' perceptions and the reputation of the company responsible for introducing said products is evident. when a company designs product labels, it strategically highlights positive aspects of its offerings, which in turn captivate readers and stimulate their intention to make a purchase (ansari, ansari, ghori, & kazi, 2019). tan, geng, katsumata, and xiong (2021) conducted a study to examine the association among product labels, consumer brand awareness, and consumer purchase intention, as outlined in their research article. the online survey was administered to a sample of participants selected at random from the credamo sample pool. this pool comprises over 2.6 million members from diverse backgrounds. the survey was conducted as a means of collecting data. the researchers employed the amos software to assess the validity and reliability of the focal agbioforum, 25(1), 2023 | 196 ahmed & taha — assessing the impacts of consumer awareness on consumer purchase intention with moderating role of product label constructs. the analysis of variance (anova) test was utilised to obtain the findings. the findings of the study indicate that the use of a suitable product label has a positive impact on consumer brand recognition and enhances its influence on consumer purchase intent. according to sanny, arina, maulidya, and pertiwi (2020), it is asserted that a prominently displayed product label has the ability to convey information about the product's attributes, the company's behaviour, and the brand's level of popularity. these labels have the potential to generate consumer recognition and familiarity with a particular brand. consumers' adoption of consumer purchase intention is contingent upon their comprehensive understanding of a brand and their positive perception thereof. thus, h4: product label is a significant moderator between consumer brand awareness and consumer purchase intention. the product label serves as a visual representation of a product, encompassing its distinctive characteristics, provenance, and instructions for obtaining the product. when a product label is meticulously designed with meticulous attention, it effectively communicates the product's functionalities and the marketing strategies employed by the respective companies. the provision of a comprehensive and transparent product label serves to raise consumer awareness regarding their specific requirements and enables them to evaluate the extent to which a given product can fulfil those needs. the cultivation of consumers' awareness and discernment contributes to the cultivation of their intention to make purchases. (prasad, garg, & prasad, 2019). de silva, wang, and kuah (2021) conducted a study to investigate the relationship between product labels, consumer awareness of needs, and consumer purchase intention. data on product labels, consumer awareness of needs, and consumer purchase intentions were gathered from both the united kingdom and china. according to the study, product labelling plays a significant role in enhancing consumer awareness of their needs and influencing their intention to make a purchase. the product label serves to enhance the connection between consumer awareness of their needs and their intention to make a purchase. according to the research conducted by nekmahmud and fekete-farkas (2020), it can be inferred that when consumers are informed about the incorporation of environmentally-friendly practices in the production processes through product labels, they develop an awareness of their health requirements and gain confidence in the ability of these products to meet their health protection needs. consumers exhibit a propensity to engage in purchasing behaviour when their needs are adequately met. h5: product label is a significant moderator between the consciousness of consumer needs and consumer purchase intention. when consumers engage in purchasing activities, they are entitled to various social and economic rights. all companies have an obligation to provide these rights to their customers, and it is part of their business responsibilities to ensure honesty in the design of product labels. the provision of transparent and accurate information regarding its offerings to consumers through product labels is imperative. according to wang, wong, and narayanan (2020), consumers who perceive a company's socially responsible behaviour are motivated to exercise their consumer rights by making purchases from that company. while dabbous and tarhini (2021) examine the correlation between product labels, consumer awareness of their rights, and consumer intention to make a purchase, the researchers employed the structural equation modelling (sem) technique in order to examine and evaluate the research hypotheses. the statistical software programmes, ibm spss 20 and ibm amos 23, were utilised to assess the adequacy of the model, verify the validity of the data, evaluate the reliability of the scales, and analyse the findings of the research study. the study suggests that when consumers are informed about the positive outcomes associated with a product through its label, they are motivated by the brand and exhibit a desire to continue purchasing from that particular brand. according to park, hyun, and thavisay (2021), it can be inferred that a well-designed product label serves to inform users about the extent to which a company endeavours to uphold consumer rights. the growing awareness of consumer rights instills a feeling of contentment among individuals and serves as a driving force behind their intention to make consumer purchases. that's why, h6: product label is a significant moderator between consumer rights awareness and consumer purchase intention. research methods this study aims to examine the impact of consumer brand awareness, consciousness of consumer needs, and awareness of consumer rights on consumer purchase intention. additionally, it seeks to explore the moderating effects of product labels on the relationship between consumer brand awareness, consciousness of consumer needs, consumer rights awareness, and consumer purchase intention within the manufacturing industry in iraq. the primary data was collected by the researchers through the use of survey questionnaires administered to the respondents. the questionnaires utilised in this study were derived from previous scholarly works. for instance, the questionnaire on consumer brand awareness consisted of four questions (tan, geng, katsumata, & xiong, 2021), while the questionnaire assessing consciousness of consumer needs comprised five questions (eastman et al., 2021). additionally, the questionnaire on consumer rights awareness encompassed six items (rhein & schmid, 2020), and the questionnaire examining product labels consisted of five questions (aitken, watkins, williams, & kean, 2020). lastly, the questionnaire assessing consumer purchase intention comprised six questions (chetioui, benlafqih, & lebdaoui, 2020). the individuals chosen to participate in the evaluation of consumer behaviour are designated as the respondents. the survey questionnaires were used to distribute the surveys to the designated employees. the selection of agbioforum, 25(1), 2023 | 197 ahmed & taha — assessing the impacts of consumer awareness on consumer purchase intention with moderating role of product label employees was conducted using purposive sampling. the researchers distributed a total of 561 surveys, of which 366 were successfully collected, indicating a response rate of approximately 65.24 percent. furthermore, the researchers utilised the spss-amos software to examine the correlation between the constructs of the participants. this tool is highly efficient in conducting primary data analysis, particularly in handling extensive data sets and intricate frameworks (hair et al., 2017). the study employed three predictors, namely consumer brand awareness (cba), consciousness of consumer needs (ccn), and consumer rights awareness (cra). additionally, the study incorporated one moderating construct, namely product labels (pl), and one predictive construct, namely consumer purchase intention (cpi). the constructs depicted in figure 1 are provided. figure 1: theoretical model research findings the outcomes show the correlation among items known as convergent validity and the outcomes exposed that composite reliability values are not less than 0.70, average variance extracted (ave) and factor loadings are not lower than 0.50 and msv and asv figures are not larger than ave values. these outcomes indicated a high correlation among items. these outcomes are given in table 1. table 1: convergent validity constructs items loadings cr ave msv asv consumer brand awareness cba1 <--cba 0.990 0.915 0.734 0.424 0.137 cba2 <--cba 0.691 cba3 <--cba 0.985 cba4 <--cba 0.713 consciousness of consumer needs ccn1 <--ccn 0.829 0.883 0.605 0.594 0.314 ccn2 <--ccn 0.859 ccn3 <--ccn 0.825 ccn4 <--ccn 0.635 ccn5 <--ccn 0.717 cra1 <--cra 0.996 consumer rights awareness cra2 <--cra 0.632 0.936 0.754 0.694 0.259 cra4 <--cra 0.998 cra5 <--cra 0.630 cra6 <--cra 0.992 product label pl1 <--pl 0.789 0.899 0.641 0.424 0.242 pl2 <--pl 0.854 pl3 <--pl 0.787 pl4 <--pl 0.795 pl5 <--pl 0.776 consumer purchase intention cpi2 <--cpi 0.528 0.837 0.513 0.267 0.172 cpi3 <--cpi 0.813 cpi4 <--cpi 0.606 cpi5 <--cpi 0.800 cpi6 <--cpi 0.787 the outcomes show the correlation among variables known as discriminant validity and the fornell larcker criteria show that the first values are larger than the other values in the same column. these outcomes indicated a low correlation among variables. these outcomes are given in table 2. table 2: discriminant validity pl cba ccn cra cpi pl 0.801 cba 0.651 0.857 ccn 0.468 0.275 0.878 cra 0.360 0.138 0.833 0.868 cpi 0.444 0.173 0.517 0.440 0.716 consumer brand awareness consciousness of consumer needs consumer rights awareness product label consumer purchase intention agbioforum, 25(1), 2023 | 198 ahmed & taha — assessing the impacts of consumer awareness on consumer purchase intention with moderating role of product label the results also indicate that the model exhibits strong fitness, as evidenced by the rmsea values being less than or equal to 0.05 and the tli and cfi values being greater than or equal to 0.90. the values exposed by the model are a good fit. the results are presented in table 3. table 3: model good fitness selected indices result acceptable level of fit tli 0.909 tli > 0.90 cfi 0.912 cfi > 0.90 rmsea 0.003 rmsea < 0.05 good; 0.05 to 0.10 acceptable figure 2: measurement model assessment the outcomes exposed that consumer brand awareness, consciousness of consumer needs and consumer rights awareness have a positive association with consumer purchase intention of the manufacturing industry in iraq and accept h1, h2 and h3. the results also indicated that the product label significantly moderates among consumer brand awareness, consciousness of consumer needs, consumer rights awareness and consumer purchase intention of the manufacturing industry in iraq and accept h4, h5 and h6. these outcomes are given in table 4. table 4: path analysis relationships beta s.e. c.r. p consumer purchase intention <-consumer brand awareness 0.587 0.036 16.253 0.000 consumer purchase intention <- consciousness of consumer needs 0.055 0.021 3.095 0.034 consumer purchase intention <-consumer rights awareness 0.065 0.030 2.167 0.045 consumer purchase intention <-cba x pl 0.142 0.006 22.224 0.000 consumer purchase intention <-cra x pl 0.030 0.007 4.525 0.000 consumer purchase intention <--ccn x pl 0.059 0.007 8.311 0.000 consumer purchase intention <--product label 0.415 0.037 11.110 0.000 figure 3: structural model assessment discussions the findings of the study indicate a significant positive correlation between consumer brand awareness and consumer purchase intention. the findings presented here are consistent with the assertions made by chakraborty (2019), who posits that individuals who possess a comprehensive understanding of various brands, including their offerings, behaviours, services, and product quality, are able to effectively evaluate and differentiate between these brands, enabling them to make informed decisions. when consumers actively pursue comprehensive knowledge about a brand, their intention to make a purchase is heightened. the findings presented in this study are corroborated by the research conducted by agbioforum, 25(1), 2023 | 199 ahmed & taha — assessing the impacts of consumer awareness on consumer purchase intention with moderating role of product label tannady et al. (2022). their study similarly demonstrates that brand awareness among consumers has a transformative effect on their cognitive processes, facilitating informed decision-making and fostering purchase intentions. the results of the study indicate a positive correlation between consumer awareness of their needs and their intention to make a purchase. the findings align with the research conducted by lee, goh, and mohd noor (2019), suggesting that consumers who are aware of their needs and desires when selecting a company for purchasing purposes tend to evaluate which company can best fulfil their requirements and preferences. when a company successfully fulfils the consumer's perceptions, it effectively influences consumer purchase intention. the findings presented in this study are corroborated by qazzafi’s (2019) research, which emphasises that consumers' awareness of their needs and their ability to fulfil them through product usage facilitates informed decision-making and fosters purchase intentions that align with the company's offerings. the findings of the study indicate a positive correlation between consumer awareness of their rights and their intention to make purchases. the findings support research by kumar, prakash, and kumar (2021), which contends that when customers are aware of their rights as buyers, they take into account both the quality of the product and the moral behaviour of company representatives, enabling them to make wise decisions. the organisation responsible for safeguarding consumer rights is actively involved in shaping consumer purchase intentions. the outcomes presented in this study are corroborated by the research conducted by prakash et al. (2019), indicating that consumers who possess an awareness of their rights are more likely to make informed decisions regarding their purchase intentions. the results indicate that the presence of a product label plays a crucial role in influencing the relationship between consumer brand awareness and consumer purchase intention. the findings presented in this study align with the research conducted by ghalizinoubi and toukabri (2019), which suggests that the implementation of product labels providing transparent information has the potential to generate consumer brand awareness and influence consumers' purchase intentions. the findings presented are corroborated by the research conducted by lu and chen (2021). based on the findings of a prior investigation, it has been observed that when a product label offers precise and reliable information, consumers tend to develop heightened brand awareness and acquire the capacity to establish purchase intentions. the findings indicate that the product label plays a crucial role as a moderator in the relationship between consumer need awareness and consumer purchase intention. the findings presented here are consistent with the research conducted by jung, choi, and oh (2020), which suggests that product labels stimulate consumers' cognitive processes, leading to an awareness of the compatibility between their needs and the company's offerings. consequently, this heightened awareness may influence consumers' intentions to make a purchase. the findings presented in this study are further corroborated by brewer and sebby’s (2021) research, which demonstrates that the inclusion of labels on products enhances consumer awareness of their needs and subsequently enhances their propensity to make a purchase. the results of the study indicate that the presence of a product label plays a crucial role in moderating the relationship between consumer awareness of their rights and their intention to make a purchase. the findings presented here align with the research conducted by sharma, dwivedi, arya, and siddiqui (2021), which posits that the fulfilment of consumers' rights and the generation of consumer purchase intention can be achieved through the implementation of suitable product labelling practices. the findings presented in this study are further corroborated by the research conducted by weismueller, harrigan, wang, and soutar (2020). their study emphasises the role of product labelling in enhancing consumer awareness of their rights, consequently influencing their intention to make a purchase. implications in order to ensure the success of a business, it is imperative to effectively engage and maintain a customer base by cultivating consumers' inclination to purchase the products and services offered by the company within the market. this study holds significance for business enterprises as it provides guidance on the formulation of strategies to influence consumer purchase intention. the research suggests that it is imperative to cultivate brand awareness among consumers as a means to enhance their intention to make purchases. the study further suggests that consumers should be mindful of their needs in order to develop purchase intentions. the study posits that it is imperative to educate consumers about their rights as customers in order to enhance their purchase intention. additionally, the research indicates that it is imperative for companies to accurately label their products. in the present scenario, the enhancement of consumer brand awareness is likely to result in an increased propensity to make purchases. there is also a proposition that product labels should be suitable and unambiguous in order to foster consumer awareness of their needs, thereby facilitating the formation of purchase intentions. furthermore, the research indicates that it is crucial to develop product labels that are comprehensive, transparent, and suitable in order to enhance consumers' awareness of their rights and facilitate their decisionmaking process when making purchases. the study guides policymakers in formulating policies aimed at enhancing consumer purchase intention through a focus on effective consumer brand awareness, awareness of consumer needs, and awareness of consumer rights. conclusion the primary objective of this study was to investigate the impact of consumer brand awareness, consumer needs awareness, and consumer rights awareness on consumer purchase intention. the primary aim of this study was to examine the impact of product labels on various aspects of consumer behaviour, including brand awareness, agbioforum, 25(1), 2023 | 200 ahmed & taha — assessing the impacts of consumer awareness on consumer purchase intention with moderating role of product label consumer needs awareness, consumer rights awareness, and consumer purchase intention. the researchers sought to obtain quantitative data by administering questionnaires to the manufacturing sector in iraq. the findings of the study revealed a significant positive correlation between consumer brand awareness, consumer needs awareness, consumer rights awareness, and consumer purchase intention. the findings of the study suggest that consumers who possess a strong understanding of a brand are capable of making comparisons between its products and those offered by competitors. furthermore, when consumers perceive the brand's products to be superior, it positively influences their intention to make a purchase. the findings also indicate that when consumers possess awareness of their needs and align them with the offerings of a company, they experience greater satisfaction and exhibit a higher intention to engage in a purchase. in a similar vein, the research findings indicate that when consumers possess knowledge regarding their rights as customers and perceive that the company is capable of upholding these rights, they exhibit a strong commitment to the company and express an intention to make purchases. additionally, the research findings indicate that the product label serves as a moderating factor in the relationship between consumer brand awareness, consumer awareness of their needs, consumer awareness of their rights, and consumer intention to make a purchase. the enhancement of consumer brand awareness, consumer needs consciousness, and consumer rights awareness significantly influences consumer purchase intention, thereby emphasising the importance of an appropriate, transparent, and fair product label. limitations the study also has certain limitations that restrict the generalizability of its findings. the researchers are being urged to implement a modification. the study framework elucidates the interplay between various factors, namely consumer brand awareness, consumer needs consciousness, consumer rights awareness, and consumer purchase intention. there are various additional factors that play a pivotal role in influencing consumer purchase intentions. in 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(2019). exploring purchase intention in cross-border ecommerce: a three stage model. journal of retailing and consumer services, 51, 320-330. doi: https://doi.org/10.1016/j.jretconser.2019.07.004 https://doi.org/10.1111/ijcs.12513 https://doi.org/10.1016/j.jretconser.2021.102696 https://doi.org/10.36262/widyakala.v9i2.602 https://doi.org/10.1080/10496491.2020.1809591 https://doi.org/10.1177/1467358419848129 https://doi.org/10.1108/apjml-11-2019-0684 https://doi.org/10.1016/j.ausmj.2020.03.002 https://doi.org/10.1108/mip-12-2021-0457 https://doi.org/10.1108/mip-12-2021-0457 https://doi.org/10.3390/su13084548 https://doi.org/10.1016/j.jretconser.2019.04.014 https://doi.org/10.1016/j.jretconser.2019.07.004 agbioforum, 25(2): 1-12. ©2023 agbioforum u.s. adult attitudes about biotechnology and risk aversion to gene editing brandon r. mcfadden* department of agricultural economics and agribusiness, university of arkansas, fayetteville, ar, usa email: mcfadden@uark.edu, phone: 479-575-2299, fax: 479-575-5306 joy n. rumble department of agricultural communication, education, and leadership, the ohio state university, columbus, oh, usa email: rumble.6@osu.edu, phone: 330-287-1368 kathryn a. stofer department of agricultural education and communication, university of florida, gainesville, fl, usa email: stofer@ufl.edu, phone: 352-273-3690 kevin m. folta department of agricultural education and communication, university of florida, gainesville, fl, usa email: kfolta@ufl.edu, phone: 352-273-4650 madison dyment horticultural sciences department, university of florida, gainesville, fl, usa email: dyment.5@buckeyemail.osu.edu *corresponding author: brandon r. mcfadden; email: mcfadden@uark.edu while attitudes toward genetically modified (gm) foods have a long study history, there is still much to learn about u.s. adults’ attitudes toward gene edited (gned) food. we combine results from two online surveys; one study of 1,331 respondents used a randomized approach to compare views between gned and gm foods, and the other study of 1,442 respondents used a framing approach to compare gned and fungicide as a solution to combat an agricultural fungus. overall, respondents viewed gned and gm similarly. however, the results provide hints that there are more positive attitudes about the capability of gned to positively impact the food system. there was no obvious preference for using either gned or fungicide to combat an agricultural disease; however, there were some small framing effects. combined, our results show some differences emerging in the discussion of gned versus gm and reduced some of the risk aversion for gned compared to fungicide use. keywords: gene editing versus genetic modification, prospect theory, risk aversion to biotechnology 1. introduction gene editing (gned) is the familiar name given to changes in dna created through site-specific nucleases, enzymes that tailor discrete changes in dna. the application of gned to combat pests and diseases in agriculture has received renewed attention since the invention of crispr, a gned technique, which science magazine named the breakthrough of the year in 2015 (travis, 2015). to what extent gned applications will reach their commercial potential in combatting pests and disease depends partly on consumers’ concerns and ultimate acceptance or rejection of this technology. early research hints that consumers may have a similar aversion to gned as genetic modification (shew et al., 2018). the literature on u.s. consumer acceptance of food containing ingredients originating from genetically engineered crops provides important lessons that may be extended to consumer perceptions of gned foods. for example, consumer preferences are influenced more by country of origin than whether a food contains ingredients from genetically modified (gm) plants (hu, house, mcfadden, & gao, 2021), and consumers are more accepting of manufactured foods with gm crop ingredients, such as sugar or oil than gm whole foods, such as sweet corn (lusk, mcfadden, & rickard, 2015). other research postulates different reasons for varying attitudes toward gm and related technology, such as lack of understanding or familiarity with the terms gm (hallman, cuite, & morin, 2013) or genetic engineering (stofer & schiebel, 2017), or differences between concerns about the technology’s effects on human health versus the environment (stofer & schiebel, 2017). although consumer aversion to previously introduced genetic engineering techniques, particularly ingredients derived from gm crops, has been well documented (frewer et al., 2013; gaskell, bauer, durant, & allum, 1999; lusk et al., 2005; mcfadden & lusk, 2016; mcfadden & smyth, 2019), there is some early evidence that consumers may be more amenable to gned solutions for issues like combatting plant disease (mcfadden, anderton, davidson, & bernard, 2021). there is also evidence that consumers perceive gned somewhat differently than gm. for example, consumers associate gned more with medical applications rather than agricultural applications (mcfadden et al., 2021). however, the presentation of the technology to consumers may matter as they consider gains and losses. previous research suggests that the gain or non-loss may not matter if presented on food labeling (abrams, 2015). abrams (2015) found no significant difference in consumer attitudes toward a chicken product when presented with different labeling treatments claiming gains or non-losses. further, previous research concluded that loss-framing about technology that enhances food safety was more influential on consumer perceptions of safety and willingness to pay than gain-framing (britwum & yiannaka, 2019a, 2019b). using data from two separate surveys administered to different sets of respondents in the u.s., this paper builds mailto:mcfadden@uark.edu mailto:rumble.6@osu.edu mailto:stofer@ufl.edu mailto:kfolta@ufl.edu mailto:dyment.5@buckeyemail.osu.edu mailto:mcfadden@uark.edu agbioforum, 25(2), 2023 | 2 mcfadden, rumble, stofer, folta, dyment — u.s. adult attitudes about biotechnology and risk aversion to gene editing on concepts applied to gm and in other agricultural contexts to provide insight into societal views about gned. in one survey, data were collected from 1,331 u.s. respondents to examine whether attitudes held toward gned were similar to attitudes held toward gm. in another survey, data were collected from 1,442 u.s. respondents and a well-founded theoretical framework, prospect theory, was used to examine attitudes toward a gned application compared to increased pesticide application (i.e., fungicide) and potential framing effects on attitudes. taken together, these results provide insight into how gned is perceived relative to previous genetic engineering techniques and pesticide use. the results of this study add to the emerging literature examining differences in u.s. adults’ attitudes about gned versus gm in food and how consumers may be willing to make tradeoffs between using gned versus pesticides to combat agricultural pests. the remainder of this paper is organized as follows. the next section is a literature review that broadly discusses the previous studies relied upon to develop the survey questions used in this study. section 3 provides details of two online survey studies, including the u.s. adult samples for the data, the specific questions used in each. survey 1 involved no experimentation and only asked about attitudes but compared gm and gned directly, while survey 2 presented hypothetical scenarios randomized for subgroups of participants based on prospect theory. we also share more details about the questions used in the previous studies that our questions rely upon in section 3, and the statistical tests estimated to examine responses and compare experimental scenarios. section 4 presents the results from the statistical tests, and section 5 provides conclusions drawn from the results and aligns the results with previous research. 2. literature review data collected for one of the research questions in this study expanded on the set of questions previously used by ruth and rumble (2019). ruth and rumble (2019) examined the attitudes and beliefs of florida residents toward different gm messaging strategies, with the primary goal of exploring uncertainty and perceived health risks associated with gm foods. the study used a quantitative survey consisting of two questions to explore the range of attitudes and beliefs individuals held toward gm food and the messaging surrounding them. a majority of respondents perceived gm foods not to be sufficiently well understood and to be riskier for consumption than conventional foods (ruth & rumble, 2019). however, while consumers were shown to be skeptical and concerned about gm food safety overall, the results pointed toward somewhat polarized views of this technology: when asked which statements least aligned with their views, the majority of participants selected the statement claiming that gm foods were safe to eat. at the same time, the second most rejected statement was that gm foods cause cancer. we introduced an additional question that used the same format and message wording but replaced gm with gned. this novel approach allowed us to directly determine similarities and differences between attitudes toward gned and gm. data collected for the other research question in this study closely followed prospect theory, a framework put forward by kahneman and tversky (1979). prospect theory posits that people respond differently to the framing of outcomes as a gain or a loss. this behavioral phenomenon, referred to as loss aversion, implies that people are more comfortable with risk when the potential outcome is presented as a loss to be avoided rather than an equal gain to be realized. the desire to avoid losses may also delay the adoption of unfamiliar technologies, even when some technologies offer wellestablished benefits (liu, 2013). for example, bacillus thuringiensis (bt) applications can reduce reliance on broad-spectrum insect control strategies, reducing effects on non-target insects, the high cost of application, and potential toxicity to applicators (ahmed, hoddinott, abedin, & hossain, 2021; kouser & qaim, 2013). yet, some producers remain hesitant to adopt bt applications (liu, 2013). loss aversion has been applied in a range of disciplines, including economics, finance, politics, international relations, and strategic management (abdellaoui, bleichrodt, & kammoun, 2013; barberis, 2013; bromiley & rau, 2022; farnham, 1994; levy, 1992; vis, 2011). a recent meta-analysis by brown, imai, vieider, and camerer (2021) concluded that people’s aversion to losses is about twice as strong as their attraction to gains. this framework has also been applied to agricultural producer decision-making, showing that producers’ risk attitudes are consistent with loss aversion (zhao & yue, 2020), and agricultural producers’ risk attitudes are consistent with the estimate of aversion to losses being twice as strong compared to gains (bocquého, jacquet, & reynaud, 2014). while there is not much evidence surrounding the effects of loss aversion on technology adoption for consumers, mcdermott, fowler, and smirnov (2008) suggest that the risk and loss preferences underlying prospect theory are consistent with models of evolutionary psychology explaining adaptive problems like procuring a sufficient amount of food for survival. our application of prospect theory is novel as it seeks to understand consumer aversion to gned relative to pesticide use. gned applications in agriculture are often designed to replace or reduce pesticide use. thus, exploring how consumers make tradeoffs between aversion to gned versus pesticide use and how framing effects influence relative aversion provides valuable information about communicating the benefits of gned applications targeted at replacing or reducing pesticide use. 3. materials & methods this paper examines responses to two lines of questions: 1) respondents selected the messages that most and least aligned with views about either gned or gm food, and 2) respondents selected either gned or fungicide as a solution to combat a fungus outbreak in apple trees in questions that varied by framing (prospect theory). more details are provided in the subsequent subsections and the specific wording of the questions asked are presented in appendix figures 1 and 2. agbioforum, 25(2), 2023 | 3 mcfadden, rumble, stofer, folta, dyment — u.s. adult attitudes about biotechnology and risk aversion to gene editing these two lines of questions build on the conceptual framework of previous research. the first line of questions builds on the framework used by ruth and rumble (2019) by collecting data on attitudes about gned and gm foods, not just gm foods. further, our study expands the population sampled to the entire u.s., whereas ruth and rumble (2019) focused on respondents residing in florida. therefore, our study provides information about u.s. adult attitudes towards gned and gm and allows us to test for any differences between gned and gm attitudes. the second line of questions builds on the prospect theory put forth by tversky and kahneman (1981) by using the framework to examine framing effects and risk aversion to a practical outcome (i.e., reducing the impact of an agricultural disease), rather than using the framework for theory testing. our application of prospect theory provides information about risk perceptions to the use of a biotechnology response (i.e., gned) relative to a chemical response (i.e., fungicide) to an agricultural disease and the impacts of framing effects on risk perceptions. 3.1 data data for the two questions examined in this paper were collected from separate online surveys administered to a sample of adults residing in the u.s. both studies were approved by the institutional review board at [masked for review] and respondents provided informed consent before answering any questions. qualtrics® online survey-design software was used to develop the survey instruments, and the sample respondents were reached via online panels maintained by qualtrics®. quota-based sampling was used to ensure that respondent characteristics matched the u.s. population based on age, education, income, and sex. the first line of questions in this paper were asked in a survey that was fielded between february 11 and 17, 2021, and collected 1,331 responses. the average respondent age was approximately 47 years old, about 31% had a bachelor’s degree or higher, the average household income was around $70,000, and 50% were female. the second line of questions in this study were asked in another survey of 1,442 respondents fielded between february 2 and march 1, 2021. the average respondent age was approximately 44 years old, about 33% had a bachelor’s degree or higher, the average household income was around $68,000, and 51% were female. the means of these demographic characteristics by groups and treatments for each study are presented in appendix table 1. there were no significant differences between groups across the demographic characteristics, as determined by multivariate analysis of variance (manova). 3.2 survey questions of interest question one: gene editing versus genetic modification for the first question, respondents were randomly assigned to a gned or gm group and only selected the messages that most and least aligned with views about one of the technologies. there were 670 and 661 respondents randomized to the ‘gned group’ and ‘gm group’, respectively, totaling 1,331 observations. a similar question formatting has been used to determine consumer preferences for food products (liu, li, steele, & fang, 2018), food attributes (massaglia et al., 2019), perceptions about the food safety responsibility of actors along the food value chain (erdem, rigby, & wossink, 2012), and food policies (caputo & lusk, 2020). the messages that respondents could select from were adapted based on common perspectives of gm food found in mahgoub’s (2016) book and previously used in a study of messages about gm food by ruth and rumble (2019). the messages presented to respondents to select from include: • gned/gm food can cause cancer in humans • gned/gm food contributes to the prevalence of antibiotic resistant bacteria • potential risks of gned/gm food related to health have not been adequately investigated • gned/gm foods might be riskier to consume than traditional food • gned/gm foods are safe for human consumption • gned/gm food increases the food available for me to purchase • gned/gm food can provide me with improved nutrition compared to traditional food (e.g., increased vitamin c) • gned/gm food can be used to increase the safety of certain foods (e.g., remove toxins or allergens) question two: gene editing versus pesticide for the second question, we adapted a question introduced by tversky and kahneman (1981) to show the existence of framing effects. tversky and kahneman (1981) described a hypothetical scenario involving a deadly disease outbreak and offered two unspecified programs with given outcomes as potential solutions. the framing of the solutions varied between two groups of respondents to determine how individuals respond to solutions framed as gains (lives saved) versus losses (lives lost). the original context presented in tversky and kahneman (1981) was: “imagine that the u.s. is preparing for the outbreak of an unusual asian disease, which is expected to kill 600 people. two alternative programs to combat the disease have been proposed. assume that the exact scientific estimate of the consequences of the programs are as follows: response options for ‘group 1’: a. if program a is adopted, 200 people will be saved. b. if program b is adopted, there is 1/3 probability that 600 people will be saved, and 2/3 probability that no people will be saved. response options for ‘group 2’: c. if program c is adopted 400 people will die. d. if program d is adopted there is 1/3 probability that nobody will die, and 2/3 probability that 600 people will die. which of the two programs would you favor?” the expected values are the same for all programs: 200 people are spared. however, programs b and d (riskseeking) involve more uncertainty than programs a and c (risk-averse). while programs a and c are identical except for their framing, there is evidence that a majority of agbioforum, 25(2), 2023 | 4 mcfadden, rumble, stofer, folta, dyment — u.s. adult attitudes about biotechnology and risk aversion to gene editing individuals in group 1 (gain frame) chose program a, and while programs b and d are the same except for framing, a majority of individuals in group 2 (loss frame) chose program d. given the difference in framing, this observed pattern is consistent with risk aversion in gains, but riskseeking behavior in losses. we adapted this framework to explore how subjects’ perceptions of gned and alternative approaches vary with the framing of a question to solve a hypothetical fungal disease outbreak in trees. in our survey, response options were framed by the number of acres saved (a gain) versus the number of acres destroyed (a loss). the number of acres saved or destroyed used was similar to that in tversky and kahneman (1981), except the magnitude of the numbers was increased (e.g., 60,000 acres instead of 600 people). further, this study deviates from the format used by tversky and kahneman (1981) in two major ways. first, we explicitly ‘label’ the solutions rather than describing the possible outcomes of unspecified programs. the solutions provided to respondents included either gene-editing the tree or spraying fungicide on the tree to reduce the impact of the hypothetical fungal disease. second, we expanded the number of groups to six, referred to as treatments 1-6 hereafter. some respondents made decisions for both the gain and loss framing (treatments 1 and 4) to yield a within-subject framing effect, while other respondents made a single decision (treatments 2, 3, 5, and 6) as in tversky and kahneman (1981) to provide a between-subject framing effect. there were 403 and 399 respondents randomized to treatments 1 (t1) and 4 (t4), respectively, while 160 respondents each were randomized to treatments 2, 3, 5, and 6, for a total of 1,442 observations. treatments 1 and 4 were oversampled, which is not typical for within-subjects measures; however, this allows us to determine if a learning effect generates different responses than the between-subjects measures. a learning effect could occur if the program selected for the acres saved question influences the program selected for the acres destroyed question. testing for a learning effect tells us whether results are sensitive to asking respondents both the gain and loss questions compared to only asking one of the questions. programs a (pa) and c (pc) were labeled “gene editing” for some respondents (t1 t3) and labeled “spraying fungicide” for other respondents (t4 t6). these designations allow us to test whether framing effects persist between respondents and whether there is indeed an order effect associated with the risk-averse or risk-taking decisions. the hypothetical scenario concerning an agricultural fungal disease outbreak for t1 t3 was: imagine the u.s. is preparing for an outbreak of a fungus, which is expected to kill 60,000 acres of apple trees. two alternative programs to combat the fungus have been proposed. program a (c) involves gene editing the tree, while program b (d) involves spraying fungicide on the tree. assume that the exact scientific estimates of the consequences of the programs are as follows: gned was the risk-averse solution for programs for t1 t3 (pag and pcg), and fungicide was the risk-seeking solution (pbf and pdf). the programs presented to t1 and t2 were: pag. if program a is adopted (gene editing the tree), 20,000 acres will be saved. pbf. if program b is adopted (spraying fungicide on the tree), there is a one-third probability that 60,000 acres will be saved and a two-thirds probability that no acres will be saved. the programs presented to t1 and t3 were: pcg. if program c is adopted (gene editing the tree), 40,000 acres will be destroyed. pdf. if program d is adopted (spraying fungicide on the tree), there is a one-third probability that no acres will be destroyed and a two-thirds probability that 60,000 acres will be destroyed. t4 t6 were shown the same hypothetical scenario about an agricultural fungal-disease outbreak; however, fungicide was the risk-averse solution for programs for t4 t6 (paf and pcf), and gned was the risk-seeking solution (pbg and pdg). the programs presented to t4 and t5 were: paf. if program a is adopted (spraying fungicide on the tree), 20,000 acres will be saved. pbg. if program b is adopted (gene editing the tree), there is a one-third probability that 60,000 acres will be saved and a two-thirds probability that no acres will be saved. the programs presented to t4 and t6 were: pcf. if program c is adopted (spraying fungicide on the tree), 40,000 acres will be destroyed. pdg. if program d is adopted (gene editing the tree), there is a one-third probability that no acres will be destroyed and a two-thirds probability that 60,000 acres will be destroyed. comparisons between subjects in t2 and t3 and between subjects in t5 and t6 estimate the usual gain/loss framing effects in the context of gene editing and fungicide spraying respectively, while comparisons between subjects in t2 and t5 and between subjects in t3 and t6 allow us to estimate the persistence of this effect as we vary which type of treatment is listed first. 3.3 statistical tests the first set of statistical tests determined whether the messages that most or least aligned with views varied by genetic engineering technique (i.e., gned vs. gm). first, we examined whether there was a difference between the frequency of messages selected as most or least aligned for gned and gm (e.g., gnedmostaligns vs. gmmostaligns). to do so, messages selected as most or least aligned were coded as a 1 and messages not selected were coded as a 0, and a chi-square test of independence was estimated to determine if there was a difference between the number of times messages were selected for gned and gm. next, we examined which messages most or least aligned with views. for this analysis, messages that most aligned with views were coded as 1, least aligned were coded as 1, and messages not selected were coded as 0. this creates a difference variable, of sorts, for each message that varies from -1 to 1 (e.g., gneddiff = gnedmostaligns minus gnedleastaligns). this allowed us to test differences in means across messages and group messages by frequency of selection, and the bonferroni p-value correction method agbioforum, 25(2), 2023 | 5 mcfadden, rumble, stofer, folta, dyment — u.s. adult attitudes about biotechnology and risk aversion to gene editing was used to adjust for the multiple comparisons of means across messages. lastly, we used a difference-indifferences approach (i.e., gneddiff minus gmdiff) to conduct between-group chi-square tests of independence for each message. this allowed us to determine the grouping of relative differences in selecting messages that most and least aligned between the gned and gm groups. the second set of statistical tests examined data from the prospect theory questions to determine framing and order effects on the sensitivity of selecting a gene editing or fungicide solution. framing effects could occur due to communicating the yield protection provided by gene editing or pesticide use as a gain (i.e., acres saved) or a loss (i.e., acres destroyed). to determine the presence of framing effects, tests of equality were conducted for the proportion of risk-averse options selected for each program (i.e., pag vs. pcg and paf vs. pcf). then, we examined differences in proportions between respondents who answered both questions and respondents who only answered one question (e.g., pag for t1 vs. pag for t2). lastly, we examined the presence of program order effects by testing differences in proportions of solutions selected based on which was presented as programs a and c (e.g., pag for t1 – t3 vs. pbg for t4 – t6). 4. results table 1 presents the results for the most/least aligned questions. there was not a significant difference between the frequencies of messages selected that as most aligned were selected for gned and gm, nor was there a difference between the frequencies for messages that least aligned. surprisingly, messages that were often selected as “most aligns” by some participants were also often selected as “least aligns” by other participants. this was the case for the messages: potential risks related to health have not been adequately investigated; might be risker than traditional food; and safe for human consumption. perhaps this highlights the dichotomy in attitudes toward genetic engineering techniques. figure 1 illustrates differences across messages for both gned and gm and the letters above the bars in the graph denote the grouping of means that have been adjusted for multiple comparisons using the bonferroni-correction method. within grouping for gneddiff and gmdiff are denoted using capital letters (e.g., a) and lowercase letters (e.g., a), respectively. the data used to produce this figure are presented in appendix tables 2 and 3. positive differences, meaning a message was chosen as “most aligns” more frequently than “least aligns,” for both gned and gm were: increases the food available; potential risks related to health have not been adequately investigated; and can increase the safety of certain foods. gned also had positive differences for: can provide improved nutrition; and safe for human consumption, while gm also had positive differences for: might be risker than traditional food; and contributes to the prevalence of antibioticresistant bacteria. ‘can cause cancer in humans’ was the message with the largest negative difference for gned and gm, indicating it was the message that least aligned with views for both genetic engineering techniques. it is interesting that there is not much concern about gm foods causing cancer but there are concerns about safety and risk. thus, there is likely some other mechanism(s) that prompts concerns about gm. moreover, there appears to be more variation in views about gned, as there are more groups of messages for gned than gm. figure 2 illustrates the difference-in-differences between gned and gm. while none of the relative differences were significantly different from zero, as determined by chisquare tests, the figure does provide some insight. for example, there appear to be more favorable attitudes toward gned’s ability to improve nutrition and increase the availability of food, and there is relatively heightened concern about the risk associated with gm. taken together, these results appear to hint at a more positive attitude toward gned compared to gm and potential optimism about the possible solutions that gned may provide. the frequency that gned and fungicide were selected in the prospect theory questions are presented by treatment in table 2. respondents mostly chose the more risk-averse program options, (pag vs. pcg and paf vs. pcf) for all treatment variations. unlike tversky and kahneman (1981), we do not find the familiar reversal between t2 and t3 or t5 and t6 as the frame changes from gains to losses. instead, subjects seem to always gravitate toward the option with lower overall uncertainty. suggesting that they are risk averse both in the domain of gains and in the domain of losses, which is inconsistent with loss aversion (britwum & yiannaka, 2019a, 2019b). table 3 presents details and results of the different tests conducted to determine framing and order effects. pag was selected more often than pcg and paf was selected more often than pcf, indicating a small framing effect of preference for the gains frame. however, these differences do not persist for between-treatment tests (e.g., pag vs. pcg). it is important to note that the within test has more power, and therefore the lack of significance for the between measures could be a result of relatively smaller sample sizes in those treatments. the only significant differences in proportions between treatments in which respondents answered both questions and treatments in which respondents only answered one of the questions was pcf for t4 versus pcf for t6. thus, there was not a strong learning effect that influenced subsequent responses. since there were no significant differences between responses to questions within groups, treatments were combined to determine if there was an order effect associated with the type of risk tolerance presented first. for example, the proportions program pag was selected by t1 or t2 was combined to compare with the proportion pbg was selected by t4 and t5. there were obvious order effects, as the risk-averse programs were always presented first and were selected more often. tests of proportions confirm that respondents were more likely to select the risk-averse program presented despite varying the solution and framing associated with the program. the fact that respondents gravitated strongly toward the more risk-averse program in each case and did not update their choice, even in a within-subject setting that provided agbioforum, 25(2), 2023 | 6 mcfadden, rumble, stofer, folta, dyment — u.s. adult attitudes about biotechnology and risk aversion to gene editing the possibility for learning, suggests that risk aversion to the outbreak of a hypothetical deadly disease was more influential than framing effects or the mechanism of yield protection (i.e., a gned approach versus a pesticide-use approach). more research is needed to unpack how risk and loss aversion affect the acceptance of alternative solutions. 5. conclusions this paper used data from two separate surveys in the u.s. to investigate risk perceptions of gned compared to gm foods and examine consumer preference between a gned and fungicide solution to a plant disease. the results provide a better understanding of how emerging gned technology is perceived relative to a standard alternative of chemical use. results indicate that the public viewed gned similar to previous genetic engineering techniques, as messages that most or least aligned with views for gned were similar to views about gm. like the previous results in ruth and rumble (2019), respondents appear to be concerned by 1) a perceived lack of investigation into the potential risks of gm, and 2) risks of gm foods to consumers. concern about a perceived lack of investigation into potential risk was slightly higher for gned than gm; however, respondents do not show concern about the risk of consuming food produced from gned crops. also like in ruth and rumble (2019), similar proportions of respondents selected several messages as either most or least aligning with views. respondents do perceive gned to have some positive impacts on the food system; for example, ‘the ability of gned food to increase food availability,’ ‘food safety,’ and ‘provide improved nutrition’ were selected as most aligned more often than least aligned. thus, while gned and gm were viewed similarly overall, there are hints that u.s. adults have a generally more favorable attitude toward gned and are less concerned about consumption risk than gm. we also used prospect theory as a method to examine the influence of risk aversion on preferences for gned and pesticide solutions for agricultural disease. there was not an obvious preference for either solution, which further supports mcfadden et al. (2021) conclusion that the public does not oppose gned solutions for combatting plant disease. framing programs as a gain or loss induced large changes in the selection of programs in previous studies (bocquého, jacquet, & reynaud, 2014; brown, imai, vieider, & camerer, 2021). while we identify some small framing effects, our findings, like abrams’ findings (2015), are not consistent with the loss aversion literature. instead, our results may suggest that the perceived risk associated with the agricultural disease dominated the risk perceptions associated with gned or fungicide solutions. our results may also be reflective of consumers’ heightened desire for certainty in an increasingly uncertain world than original prospect theory work (1979). also, the lack of large changes in the selection of programs due to framing effects may be due to differences between risk perceptions for human lives lost used by tversky and kahneman (1981) and acres lost used by this study. the use of gned in crop production has occurred, and these results may be helpful in devising communication strategies to adjust public perception and acceptance. transparency and precision about the actual risks and the remedies to mitigate them may allay the concerns that this is a new technology that is available without sufficient safety testing (zhao & wolt, 2017). our results show some differences emerging in the discussion of gned versus gm and present the opportunity for researchers and communicators to capitalize on the conversation surrounding gned technologies. observations of reduced perceived risk and more positive attitudes provide the opportunity to move the technology to consumer acceptance and encourage adoption. furthermore, our findings that deviated from loss aversion literature present the opportunity to further explore how consumers consider risk and loss related to gned technologies and if this varies between products or the phase of production in which the loss is presented (e.g., loss of acres versus loss of food in the grocery store). future research should consider how consumers weigh risk, loss framing, and potential solutions related to gned technologies when presented in a food consumption scenario. finally, we could explore consumers’ overall desire for certainty in the world as a potential variable in their decision-making. funding: this work was supported by the usda national institute of food and agriculture [2018-67023-29795]. references abdellaoui, m., bleichrodt, h., & kammoun, h. 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(2020). risk preferences of commodity crop producers and specialty crop producers: an application of prospect theory. agricultural economics, 51(3), 359-372. doi: https://doi.org/10.1111/agec.12559 figure 1. difference in messages that most and least align for gene edited and genetically modified foods note: capital letters (e.g., a) denote bonferonni-adjusted groups for gned diff and lowercase letters (e.g., a) denote the groups for gm diff. https://www.science.org/content/article/and-science-s-2015-breakthrough-year https://www.science.org/content/article/and-science-s-2015-breakthrough-year https://doi.org/10.1126/science.7455683 https://doi.org/10.1111/j.1478-9302.2011.00238.x https://doi.org/10.1042/etls20170037 https://doi.org/10.1111/agec.12559 agbioforum, 25(2), 2023 | 9 mcfadden, rumble, stofer, folta, dyment — u.s. adult attitudes about biotechnology and risk aversion to gene editing figure 2. difference-in-differences between messages that most and least align for gene edited and genetically modified foods table 1. proportions that messages were selected as most or least align with views for gned and gm foods most aligns least aligns messages gned gm gned gm gned/gm food can cause cancer in humans 0.081 0.103 0.260 0.230 gned/gm food contributes to the prevalence of antibiotic resistant bacteria 0.076 0.086 0.084 0.083 potential risks of gned/gm food related to health have not been adequately investigated 0.187 0.159 0.124 0.118 gned/gm foods might be riskier to consume than traditional food 0.122 0.148 0.163 0.126 gned/gm foods are safe for human consumption 0.136 0.136 0.128 0.154 gned/gm food increases the food available for me to purchase 0.164 0.141 0.084 0.095 gned/gm food can provide me with improved nutrition compared to traditional food (e.g., increased vitamin c) 0.118 0.106 0.090 0.115 gned/gm food can be used to increase the safety of certain foods (e.g., remove toxins or allergens) 0.116 0.121 0.069 0.079 note: n=670 and 661 for the gned and gm groups, respectively. chi-square tests were used to determine differences in frequencies that messages were selected as either most or least aligns between gned and gm. there was not a significant difference for messages that most aligned (chi-square statistic = 7.04, p-value = 0.43) or least aligned (chi-square statistic = 9.14, p-value = 0.24). table 2. proportions that gned and fungicide use programs were selected as solutions to a fungus outbreak gned as risk-averse solution fungicide as risk-averse solution treatment 1 treatment 2 treatment 3 treatment 4 treatment 5 treatment 6 gain frame gain frame pag 0.707 0.706 paf 0.629 0.656 pbf 0.293 0.294 pbg 0.371 0.344 loss frame loss frame pcg 0.618 0.638 pcf 0.554 0.644 pdf 0.382 0.363 pdg 0.446 0.356 n 403 160 160 n 399 160 160 agbioforum, 25(2), 2023 | 10 mcfadden, rumble, stofer, folta, dyment — u.s. adult attitudes about biotechnology and risk aversion to gene editing table 3. effect testing for the prospect theory questions within comparisons between comparisons treatment(s) risk-averse solution frame number of respondents difference in proportions test statistic (h0: difference=0) framing effects pag vs. pcg t1 gene editing gain vs. loss 403 0.089 z = 2.86 p-value < 0.01 pag vs. pcg t2 vs. t3 gene editing gain vs. loss 160 0.069 z = 1.31 p-value = 0.19 paf vs. pcf t4 fungicide gain vs. loss 399 0.75 z = 2.16 p-value = 0.03 paf vs. pcf t5 vs. t6 fungicide gain vs. loss 160 0.013 z = 0.23 p-value = 0.81 learning effects pag vs. pag t1 vs. t2 gene editing gain vs. gain 403 vs. 160 0.001 z = 0.02 p-value = 0.98 pcg vs. pcg t1 vs. t3 gene editing loss vs. loss 403 vs. 160 -0.020 z = 0.43 p-value = 0.66 paf vs. paf t4 vs. t5 fungicide gain vs. gain 399 vs. 160 -0.027 z = 0.60 p-value = 0.55 pcf vs. pcf t4 vs. t6 fungicide loss vs. loss 399 vs. 160 -0.090 z = 1.95 p-value = 0.05 program order effects pag vs. pbg t1 + t2 vs. t4 + t5 gene editing vs. fungicide gain vs. gain 563 vs. 559 0.070 z = 2.50 p-value = 0.01 pcg vs. pdg t1 + t3 vs. t4 + t6 gene editing vs. fungicide loss vs. loss 563 vs. 559 0.044 z = 1.50 p-value = 0.13 appendix appendix figure 1. specific wording for question one: gene editing vs. genetic modification agbioforum, 25(2), 2023 | 11 mcfadden, rumble, stofer, folta, dyment — u.s. adult attitudes about biotechnology and risk aversion to gene editing appendix figure 2. specific wording for question two: gene editing vs. pesticide appendix table 1. demographic characteristics by groups for both studies study 1 study 2 gned group gm group gain group loss group age 48.084 46.870 43.786 43.314 education 3.545 3.589 3.545 3.495 income 6.793 6.759 6.696 6.384 sex 1.510 1.536 1.550 1.566 note: there were not significant differences across the demographic variables between groups within studies, as determined by estimating a manova (study 1: wilks' lambda = 0.998, p-value = 0.60; study 2: wilks' lambda = 0.998, p-value = 0.57). age is number of years, education ranged from 1=less than high school,…, 6=graduate or professional degree, income ranged from 1=less than $10,000,…, 12=$150,000 or more, and the response options for sex were 1=male, 2=female, 3=non-binary, and 4=prefer not to say. appendix table 2. gned diff and bonferroni-corrected groups messages mean gned difference bonferroni group gned/gm food increases the food available for me to purchase 0.081 a potential risks of gned/gm food related to health have not been adequately investigated 0.063 ab gned/gm food can be used to increase the safety of certain foods (e.g., remove toxins or allergens) 0.048 ab gned/gm food can provide me with improved nutrition compared to traditional food (e.g., increased vitamin c) 0.028 abc gned/gm foods are safe for human consumption 0.007 abc gned/gm food contributes to the prevalence of antibiotic resistant bacteria -0.007 bc gned/gm foods might be riskier to consume than traditional food -0.040 c gned/gm food can cause cancer in humans -0.179 d agbioforum, 25(2), 2023 | 12 mcfadden, rumble, stofer, folta, dyment — u.s. adult attitudes about biotechnology and risk aversion to gene editing appendix table 3. gm diff and bonferroni-corrected groups messages mean gm difference bonferroni group gned/gm food increases the food available for me to purchase 0.045 a gned/gm food can be used to increase the safety of certain foods (e.g., remove toxins or allergens) 0.042 a potential risks of gned/gm food related to health have not been adequately investigated 0.041 a gned/gm foods might be riskier to consume than traditional food 0.023 a gned/gm food contributes to the prevalence of antibiotic resistant bacteria 0.003 a gned/gm food can provide me with improved nutrition compared to traditional food (e.g., increased vitamin c) -0.009 a gned/gm foods are safe for human consumption -0.018 a gned/gm food can cause cancer in humans -0.127 b agbioforum, 25(2): 32-41. ©2023 agbioforum sustainable economic growth in iraq: role of industrialization, deforestation, trade, employment, technology, and agriculture majeed m. abid* department of accounting / al-hadi university college, baghdad 10011, iraq. email: dr.majeed@huc.edu.iq nidhal raheem mardood department of accounting / college of management and economic/al-esraa university/baghdad, iraq. email: iraq.nidhal@esraa.edu.iq amenah muayad abdullah college of education/al-farahidi university, baghdad, iraq. email: mizherrabaa4@gmail.com mohammed salim madi department of accounting / mazaya university college iraq. email: mohammedmadi196@mpu.edu.iq muqdad hussein ali college of media, department of journalism/ the islamic university in najaf, najaf, iraq. email: muqdadhussein@gmail.com mohammed yousif oudah al-muttar scientific research centre, al-ayen university, thi-qar, iraq. email: mohd.yousif@alayen.edu.iq rajaa jasim mohammed department of management/ al-nisour university college/ baghdad/ iraq. email: rajaa.j.bs@nuc.edu.iq ghassan kasim al_lami business management department/ ashur university college/baghdad/ iraq. email: ghassank@gmail.com raad m. sayed-lafi college of education/ national university of science and technology, dhi qar, iraq. email: raad.fisheries@gmail.com *corresponding author: majeed m. abid email: dr.majeed@huc.edu.iq in the present study, the sustainable economic growth of iraq is evaluated by analyzing six key explanatory variables, namely industrialization, deforestation, trade, employment, and agricultural expansion, which is measured by arable land. the study utilizes a time series research design spanning from 2000 to 2021. a quantitative approach was adopted, and data were collected from the world bank database. the study utilized fmols (fully modified ordinary least squares) and dols (dynamic ordinary least squares) regression techniques to investigate the relationship. additionally, canonical cointegrating regression (ccr) estimation was employed as a robust estimator. the results reveal significant negative effects of employment and deforestation on gdp per capita (gdpc). industrialization also negatively impacts gdpc, while trade shows a positive influence. on the other hand, arable land does not exhibit a significant impact on gdpc. based on the findings, the research suggests several policy implications. keywords: sustainable economic growth, industrialization, trade, deforestation, agricultural expansion 1. introduction sustainable economic growth implies that maintaining growth without economic complications is essential to maintain the country's economic structure. sustainable economic development considers protecting natural resources and people's needs and requirements without provoking environmental threats (awan, 2013). the development of sustainable development goals(sdgs) ensures financial development and energy efficiency/growth in the east, asian, and pacific regions (zakari et al., 2022). with the massive contribution of ict, employment, and education, the middle east region witnessed significant changes in economic growth. however, the sustainable conditions of this region are not much satisfactory compared to the oecd countries. the technological innovations and the educations trends in the respective areas are both found to be essential for sustainable economic growth (habibi & zabardast, 2020). regarding the current sustainable situation in iraq, the un is actively supporting the sustainable goals in iraq. the major sustainable areas that they emphasize include food security, well-being, green energy consumption, industrial innovation, employment, and responsible consumption and production. the micro and macro environmental bodies in iraq are observing these factors to guarantee the success of sustainable efforts in this region. the agricultural sector of iraq is vital for the economy of the country. agriculture, forestry, and fishing add economic value and hold significant importance. along with employment opportunities and industrial sustainable mailto:dr.majeed@huc.edu.iq mailto:iraq.nidhal@esraa.edu.iq mailto:mizherrabaa4@gmail.com mailto:mohammedmadi196@mpu.edu.iq mailto:muqdadhussein@gmail.com mailto:mohd.yousif@alayen.edu.iq mailto:rajaa.j.bs@nuc.edu.iq mailto:ghassank@gmail.com mailto:raad.fisheries@gmail.com mailto:dr.majeed@huc.edu.iq agbioforum, 25(2), 2023 | 33 abid, mardood, abdullah, madi, ali, al-muttar, mohammed, al_lami, sayed-lafi — sustainable economic growth in iraq… innovations, agricultural expansion in a sustainable way is one of the effective measures to achieve sustainable economic goals. despite the setbacks in the sector in the wake of climate change, the recovery and expansion of agricultural production are necessary to maintain food security in this region (altameemi & flayyih, 2021). it is evident from the previous studies that agricultural value added is significantly associated with sustainable economic growth and development. on the other hand, economic expansion is also found in a close relationship with energy utility and environmental degradation. observing these factors from both perspectives is essential to assess the issue on the country level. the past research studies (al-mousawi & al-ghalibi, 2023; ewaid, abed, & al-ansari, 2020) also considered the socioeconomic perspective on agriculture growth and economic development. the factors impacting economic growth, i.e., unemployment, trade imbalance, and lack of availability of sustainable tools and technology, also indirectly affect the agriculture business. it is also occurred that socioeconomic growth is rooted in multiple political, social, and economic country-level factors that determine iraq’s financial growth performance. despite numerous research studies on these issues, the unavailability of research on sustainable economic development in the context of iraq provides the base for the current study. the researcher acknowledges the need to examine these issues from multiple sources and the gaps they fill by identifying the association between economic and noneconomic factors. figure 1. gross domestic product growth in iraq from 2016 to 2021 source: statista 2023 the researcher, by taking into consideration the context of iraq, aims to achieve the following research objectives: 1) to analyze the role of industrialization and technological advancement on sustainable economic growth, 2) to study the deforestation and agricultural expansion on sustainable economic growth, 3) to study the role of trade and employment in determining the sustainable economic growth of iraq. the association between these factors is examined by adopting the quantitative research method and collecting data from secondary sources. the study has a specific research purpose as it covers the wide range of issues necessary to address to boost economic growth in iraq. in the current geopolitical situation, taking responsible measures and doing strategic assessments is essential to handle sustainable economic challenges. the study would contribute to the practical policy-making of economic value by providing a strong theoretical base for future policies and regulations. 2. literature review 2.1. theoretical background the present study explores the impact of industrialization, deforestation, trade, employment, technological advancements and agricultural expansion on the sustainable economic growth of iraq. sustainable economic growth refers to a type of economic development that fulfils the needs of the current generation without putting the potential of future generations to fulfil their needs at stake. it is concerned with attaining a balance between economic development, social progress, and agbioforum, 25(2), 2023 | 34 abid, mardood, abdullah, madi, ali, al-muttar, mohammed, al_lami, sayed-lafi — sustainable economic growth in iraq… environmental conservation. the concept of sustainable development gained scholarly attention because of the negative aspects of the conventional economic growth models. the traditional models of the economic model have put immense strain on the natural environment due to the over-consumption of natural resources and exploitation of the natural environment (hysa et al., 2020). the present study is based on the theory of green economy which is based on the concept of sustainable development. it highlights various threats to environmental conservation due to rapid economic growth. the concept of green growth promotes economic development without compromising social inclusion, and the welfare of the present as well as future generations. it also stresses social equity to decrease the threats to environmental and ecological conservation (pangarso et al., 2022). figure 2.1: the conceptual framework 2.2. the impact of industrialization on sustainable economic growth 258 rapid industrialization had led to great economic progress all over the world. however, it has also posed grave threats to the environment and society. the concept of sustainable economic growth addressed these challenges faced by the world due to conventional models of industrialization. the rapid industrialization is the primary driver of environmental degradation. industries have caused an increase in pollution, habitat loss and resource exploitation. various industries across the world are responsible for greenhouse gas emissions which have led to severe changes in climatic patterns (wang & su, 2019). the energy sector in iraq is the primary source of greenhouse gas emissions in the region. fugitive emissions contribute 48.2% to the total emissions of greenhouse gases, and 4.5 per cent from the industries based on the combustion of fuel. the construction industries in iraq are responsible for 13.6% of total greenhouse gas emissions (hashim et al., 2020). moreover, the studies have shown that economic growth in iraq has been natural resource-dependent so far which has led to environmental degradation in the country (madani, 2020). therefore, iraq has introduced its mitigation program to reduce greenhouse gas emissions by 2030 by promoting sustainable practices in industries. renewable energy resources, particularly solar energy and wind power are gaining attraction in iraq where demands for electric power are increasing every year. iraq has green solar resources which can be used to promote sustainable economic growth in the country (al-kayiem & mohammad, 2019). h1: industrialization has a significant negative impact on sustainable economic growth. 2.3. impact of deforestation on sustainable economic growth 232 deforestation has far-reaching consequences for sustainable economic growth. mostly, deforestation is driven by agricultural activities and urbanization. forests are responsible for carbon absorption from the atmosphere, maintaining the fertility of the soil, and biodiversity conservation. deforestation leads to increased carbon content in the atmosphere and threatens biodiversity. it also leads to the loss of water reserves and increases the frequency of natural hazards like floods and landslides. this leads to natural resource depletion and subsequent unsustainability in economic growth (ellwanger et al., 2020). over the last few decades, 80% of the armed conflicts and wars have taken place in forest areas of iraq. this has led to the major destruction of forests and the loss of biodiversity and natural reserves. the studies have observed an increase in deforestation after the war ended. furthermore, the government was more concerned with the well-being of the people and paid little to no attention towards forest restoration (heidarlou et al., 2020). moreover, poor governance has led to deforestation and environmental degradation in iraq. the government reduced the subsidies on fuel after the crash in oil prices in 2014. as a result, people destroyed the forests to fulfil their fuel demand in the winter season. thus, war conflicts and lack of political attention have led to deforestation and the loss of wildlife and natural resources in iraq (eklund et al., 2021). industrialization deforestation trade employment sustainable economic growth technological advancements agricultural expansion agbioforum, 25(2), 2023 | 35 abid, mardood, abdullah, madi, ali, al-muttar, mohammed, al_lami, sayed-lafi — sustainable economic growth in iraq… h2: deforestation has a significant and negative impact on sustainable economic growth. 2.4. the impact of trade on sustainable economic growth 205 jassim, salman, and al-taie (2021) revealed that the trade openness in the context of iraq has led to negative impacts on the sustainable development of the industrial sector. the policy of trade openness has caused a disastrous imbalance in the structure of the country’s economy which requires serious measures of mitigation. the liberal approach of iraq towards trade has eradicated trade barriers to the import of goods. this has led to increasing trade competition for the local industries. resultantly, the country is seeing a decline in the local industry. this has resulted in the deterioration of domestic industry, increased unemployment and economic imbalances. similarly, dadoosh and alomary (2021) affirm that the unfair trade policies in iraq have led to a trade imbalance in the region. therefore, the country’s exports are relatively cheaper than the local products. as a result of the trade openness policy implemented in 2003, iraq became a net importer of various fraudulent and low-quality goods and services. currently, iraq is the main market of countries such as china, iran and turkey. this has led to unfair competition for the local industries. h3: trade has a significant and negative influence on sustainable economic growth. 2.5. the impact of employment on sustainable economic growth employment plays a significant role in the sustainable economic growth of a country. as it ensures an inclusive well-being of society and increases opportunities for an increase in economic productivity. employment generates income for individuals and enables them to meet their fundamental needs and improve their living standards. it boosts the local economy as well (frey, 2018). the employment rate in iraq was 37.49% in 2019 and fell to 35.66% in 2020 as shown in the figure 2.2. moreover, the studies have revealed that millions of iraqis are still displaced and the government has failed its sunni population. half of the population is facing poverty and unemployment. the government needs to create up to 340,000 jobs every year to keep a strict check on unemployment (cordesman & molot, 2019). according to the research conducted by shaaibith, daly, and neama (2020), economic growth and employment have a significant impact on the inclusive welfare and growth of people. war and terrorism in iraq from 1999-2017 have had drastic consequences on the country’s economy and unemployment is one of the results of the armed conflicts. figure 2.2: central statistical organization iraq (economics, 2020) h4. employment has a significant and positive impact on the sustainable economic growth. 2.6. the impact of technological advancements on sustainable economic growth 185 over the past few decades, the technological advancements have reshaped the economy of various countries by introducing sustainable agricultural practices, resource efficient technology, green infrastructure and economic diversification (hickel & kallis, 2020). laffta and al-rawi (2018) emphasized the incorporation of green technology in urban planning in iraq. green technology introduced environment-friendly strategies and programs that promote moderate consumption of natural resources, energy efficient economic programs, inclusive wellbeing of the society, and reliance on renewable energy resources 33 34 35 36 37 38 39 40 2014 2016 2018 2020 iraq employment rate agbioforum, 25(2), 2023 | 36 abid, mardood, abdullah, madi, ali, al-muttar, mohammed, al_lami, sayed-lafi — sustainable economic growth in iraq… and thus contributes to achieve sustainable economic growth. jasim, al-maliki, and al-mamoori (2022) revealed that rapid urbanization is taking place in iraq without any attention towards green growth and green infrastructure. moreover, there are unsustainable water management practices in the urban areas which can lead to water depletion and economic crisis in the country. abdulateef and al-alwan (2022) affirmed that green infrastructure and technology can play a significant role in decreasing urban heat island in baghdad city. this can help the country in mitigating the challenged posed by climate change and greenhouse gas emissions. h5: the technological advancements have a significant and positive impact on sustainable economic growth. 2.7. the impact of agricultural expansion on sustainable economic growth the agricultural expansion promotes economic growth in the country but at the same time unsustainable agricultural practices cause environmental degradation and exploitation of natural reserves. for instance, unsustainable agricultural practices in iraq have degraded the mesopotamian marshes which has led to loss of water reserves. moreover, untreated agro-chemicals are contaminating water reserves which has impacted the quality of drinking water and led to loss of aquatic biodiversity. the traditional irrigation practices have increased the water salinity (price, 2018). various unsustainable agricultural practices in iraq are degrading the environment. the agriculture sector uses 40% of land and consumes 70% of natural reserves. the studies have revealed that agriculture sector is responsible for 25% of global greenhouse gas emissions. moreover, agricultural expansion has also led to deforestation and severe climate changes. therefore, the government needs to incorporate green and smart farming technologies in the agriculture sector because a sustainable economic growth in iraq depends on sustainable agricultural development (aliyas, ismail, & alhadeedy, 2018). h6: agricultural expansion has a significant and negative impact on sustainable economic growth. 3. research methodology the present research aims to evaluate the sustainable economic growth of iraq through six important explanatory variables: industrialization, deforestation, trade, employment, and agricultural expansion (proxy of arable land). for meeting this objective, the most suitable methodology is “quantitative secondary research”. researchers, therefore, collected data by accessing the “world development indicator”, which enables users to find different indicators and how they can be gathered and visualized to assess various development trends (harris, schiantarelli, & siregar, 2000; swanson, 2006). the present research has implemented a time series research design within 2000-2021. table 1 shows the variable description, its abbreviations, and the source of measuring these variables. table 1: description of variables variable names description abbreviation status source industrialization in the present study, industrialization has been studied as the process of transformation of the economy of a country from a focus on agriculture to dependency on manufacturing (chenery et al., 1986). ind independent variable wdi deforestation deforestation is the intentional clearance of forest land (barbier & burgess, 2001). deforest independent variable wdi trade trade can be understood as the voluntary exchange of goods and services among economic actors (copeland & taylor, 2004). trd independent variable wdi employment employment can be defined as the paid-mutual work arrangement between the employee and recruiter (frey & osborne, 2013). emp independent variable wdi agricultural expansion according to laurance, sayer, and cassman (2014), agricultural expansion means transforming uncultivated land, including the natural forests, grasslands, woodlands and wetlands, into grazing land or crop area. al proxy for arable land independent variable wdi sustainable economic growth it means having such a rate of economic growth that does not entail significant pressure on the prices of services, products, etc (kendiukhov & tvaronaviciene, 2017). in the present research, it has been undertaken as an attempt to satisfy the requirements of human beings but in such a way that sustains the natural resources and the ecological surroundings for future generations. seg dependent variable wdi to assess the impact of industrialization, deforestation, trade and employment on the sustainable economic growth of iraq, the researcher has applied distinct techniques for data analysis. in the first step of data analysis, the researcher has applied a descriptive summary test to assess the main features of data and variables such as their normality characteristics, missing values, mean, median, minimum and maximum values, standard deviation, skewness etc. in the second step, the researcher applied the cointegration engle-granger test (bilgili, 1998; lee & lee, 2015). when a single “co-integrating vector” engle-granger cointegration test can be used, this test assumes the simple intuition that if constructs are co-integrated, then the residual of the co-integrating regression must be stationary. so, the researcher has applied the engle-granger step that initiates the creation of residuals based on static regression and then examines the residuals for the existence of unit roots. the equation for the cointegration test is stated below. agbioforum, 25(2), 2023 | 37 abid, mardood, abdullah, madi, ali, al-muttar, mohammed, al_lami, sayed-lafi — sustainable economic growth in iraq… 𝑦𝑖,𝑡 = 𝛼𝑖 + 𝛿𝑖,𝑡 + 𝛽1𝑋1,𝑖,𝑡 + 𝛽2𝑋2,𝑖,𝑡 + ⋯ + 𝛽𝑛𝑋𝑛,𝑖,𝑡 + 휀𝑖,𝑡 after applying the eagle-granger cointegration test, the researcher moved towards applying fmols and dols (khan et al., 2019). the ordinary least square method is used to assess unknown parameters in the model. in this research, the researcher has implemented fmols and dols to assess the relationship among variables. the fully modified ordinary least square method has been used by many researchers that aim to develop new techniques for estimating co-integrating coefficients. so, dols and fmols have been implemented to test the consistency of outcomes. 𝛽𝑁𝑇 ∗ − 𝛽 = ( ∑ 𝐿22𝑡 −2 𝑁 𝑡=1 ∑(𝜒𝑛−�̅�𝑈)2) ∑ 𝐿11𝑡 −1 𝐿22𝑡 −1 𝑁 𝑡=1 (∑(𝜒𝑎 𝑇 𝑡=1 𝑇 𝑡=1 − �̅�𝑡) 𝜇𝑢 ∗ − 𝑇�̂�𝑡 where, 𝜇𝑡 ∗ = 𝜇𝑡 − �̂�21𝑡 �̂�𝑡𝑡2 δ𝜒𝑡 , 𝛾𝑡 = γ̂21𝑡ω̂21𝑡 0 − �̂�21𝑡 �̂�𝑡𝑡2 ( γ̂22𝑡 + ω̂22𝑡 0 ) compared to ols, the fmols estimator eliminates the asymptotic bias and enhances efficiency by correcting both “long run serial correlation” in the endogeneity formulated through the long-run correlation between “ u0t and u*t”. the second technique applied is the “dynamic ordinary least square”. the dols technique is applied to attain the long-run estimates among variables. in the present research, the researcher has implemented dols, an efficient and simple technique to estimate the “co-efficient of co-integrating associations”. in the last step, the researcher implemented the canonical co-integrating regression technique (park, 1992). recent research by merlin and chen (2021) has also implemented similar testing techniques. ccr is used to study the representation of similar co-integrating relationships as the “original model”. researchers suggest using it in such studies that yield asymptotically effective chi-square estimators and tests. furthermore, the “breusch-godfrey serial correlation lm test” and the “heteroscedasticity test” has also been implemented by the researcher. 4. results descriptive statistics play a crucial role in evaluating the normality, presence of outliers, and symmetry of data. the table below presents a summary of descriptive statistics where the total number of observations used in the study is 22. table 2 presents statistics of mean, standard deviation, skewness, jarque-bera (jb) test, and kurtosis. according to the recommended range for kurtosis (-7 to +7) and skewness (-2 to +2) (joseph et al., 2010), all variables, except for gdpc, deforest and al, fall within the specified range. similarly, the jb test's probability values indicate that these variables do not follow a normal distribution, as they have a p-value less than 0.05, indicating non-normality. emp, ind and trd have pvalues greater than 0.05 which implies that the variables follow a normal distribution. table 2: descriptive statistics gdpg emp deforest al ind trd mean 4.459785 22.76667 0.005774 10.11329 69.45441 85.44713 median 4.051082 22.71820 0.004732 10.62968 69.18550 73.55308 maximum 53.38179 25.43260 0.017953 11.88925 71.11900 154.2345 minimum -36.65815 20.30370 0.000000 0.000000 68.49600 54.58832 std. dev. 15.40055 1.864317 0.003625 2.464209 0.825629 27.97616 skewness 0.591941 0.081832 1.927057 -3.301327 0.623432 1.014457 kurtosis 7.740782 1.518013 7.219213 14.22161 2.077496 2.794614 jarque-bera 21.88687 2.037816 29.93462 155.3930 2.205209 3.812122 probability 0.000018 0.360989 0.000000 0.000000 0.332005 0.148665 sum 98.11527 500.8668 0.127025 222.4923 1527.997 1879.837 sum sq. dev. 4980.716 72.98921 0.000276 127.5189 14.31492 16435.97 observations 22 22 22 22 22 22 the engle-granger test for cointegration simplifies to an augmented dickey-fuller (adf) unit root test of the residuals from the cointegration regression. the null hypothesis presumes that there is no cointegration, i.e., residuals possess a unit root. with a p-value below 0.05, the null hypothesis is rejected, indicating that there is cointegration. table 3: cointegration test value prob.* engle-granger tau-statistic -7.471535 0.0010 engle-granger z-statistic -30.82989 0.0008 in the present study, the strength and direction of the impact of independent variables on sustainable economic growth through fmols, dols, and canonical cointegration regression. the results of fmols and dols are displayed in table 4 and 5, respectively. the results in table 3 reveal that emp negatively affects gdpc in iraq with a p-value of 0.087, indicating that the association is significant at a 10% significance level. similarly, table 4 confirms the negative influence of emp on gdpc. however, with a p-value of 0.1049, the impact of emp on gdpc is insignificant in the dols model. secondly, deforestation is also negatively impacting gdpc. with a p-value < 0.01, the impact is significant at a 1% significance level, as shown in tables 4 and 5. additionally, industrialization has a negative and significant impact on gdpc (p= 0.039) in table 4. similarly, in the dols model, the results revealed a negative and significant association between ind and gdpc at a 5% significance level. conversely, trade is found to positively impact gdpc in iraq, and the association is significant with a p-value of 0.0067 in table 4. lastly, al does not have a significant influence on gdpc in fmols and dols models, with p-values of agbioforum, 25(2), 2023 | 38 abid, mardood, abdullah, madi, ali, al-muttar, mohammed, al_lami, sayed-lafi — sustainable economic growth in iraq… 0.3067 and 0.3669, respectively. in table 4, the r-squared value signifies that 49.7% of the variation in the model is justified by the predictors incorporated in the study. table 4: fully modified least squares variable coefficient std. error t-statistic prob. emp -10.47860 5.635033 -1.859546 0.0827 deforest -5921.595 1193.645 -4.960934 0.0002 ind -20.36709 9.026693 -2.256318 0.0394 trd 0.813889 0.259190 3.140128 0.0067 al 0.856336 0.808966 1.058555 0.3066 c 1614.451 739.0923 2.184370 0.0452 r-squared 0.497366 mean dependent var 3.866362 adjusted r-squared 0.329821 s.d. dependent var 15.52099 s.e. of regression 12.70618 sum squared resid 2421.703 long-run variance 60.64624 table 5: dynamic least squares variable coefficient std. error t-statistic prob. emp -10.15162 5.905708 -1.718950 0.1049 deforest -5556.023 1041.599 -5.334132 0.0001 ind -21.07628 9.481399 -2.222908 0.0410 trd 0.665752 0.244918 2.718258 0.0152 al 0.781709 0.841857 0.928553 0.3669 c 1666.706 776.4320 2.146622 0.0475 r-squared 0.498015 mean dependent var 4.459785 adjusted r-squared 0.341145 s.d. dependent var 15.40055 s.e. of regression 12.50061 sum squared resid 2500.245 long-run variance 67.13813 as shown by the findings of fmols and dols, emp has a negative impact on gdpc in iraq. however, contrary to the above results, emp does not significantly impact gdpc in the ccr model. there is a negative and significant relationship between deforestation and gdpc, suggesting that increasing deforestation leads to a decline in the sustainable economic growth of iraq. industrialization is also causing a decline in gdpc as indicated by the negative coefficient; however, in the ccr model, ind does not have a significant impact on gdpc with a p-value of 0.2031. trade positively and significantly impacts gdpc with a p-value of 0.022, leading to the support of the association at a 5% significance level. similar to the results in tables 4 and 5, al does not have a significant impact on gdpc. table 6: canonical cointegration regression variable coefficient std. error t-statistic prob. emp -13.42666 10.06024 -1.334625 0.2019 deforest -5437.491 1191.966 -4.561782 0.0004 ind -24.01610 18.04701 -1.330752 0.2031 trd 0.853961 0.334753 2.551017 0.0222 al 0.469482 2.512043 0.186893 0.8542 c 1932.416 1438.746 1.343125 0.1992 r-squared 0.475041 mean dependent var 3.866362 adjusted r-squared 0.300055 s.d. dependent var 15.52099 s.e. of regression 12.98528 sum squared resid 2529.262 long-run variance 60.64624 it is critical to ascertain that the econometric model does not have a serial correlation. the test results are displayed in table 7. the statistic-f and chi-square values showed no significance, at a significance level of 5%. therefore, the researcher concluded that the model is free from the issue of autocorrelation and the null hypothesis stating no serial correlation is accepted. table 7: breusch-godfrey serial correlation lm test f-statistic 2.555332 prob. f(2,15) 0.1109 obs*r-squared 5.590795 prob. chi-square(2) 0.0611 lastly, table 8 provides information about the presence or absence of heteroskedasticity, which is a significant concern in regression analysis. the results of the test, presented in table 8, indicate that the variance of the error terms is constant, as evidenced by the f-probability value of 0.2457. consequently, the results validate that there is no issue of heteroskedasticity in the model at a 5% significance level. table 8: heteroskedasticity test: harvey f-statistic 1.502514 prob. f(4,17) 0.2457 obs*r-squared 5.746236 prob. chi-square(4) 0.2189 scaled explained ss 6.585104 prob. chi-square(4) 0.1595 5. discussion the primary aim of this study is to examine the determinants that can potentially impact sustainable economic growth in iraq. in this accordance, the impact of industrialization (ind), deforestation (deforest), trade (trd), employment (emp), agricultural expansion measured by arable land (al), and technological advancement has been examined on sustainable economic growth. the association among variables has been drawn in the section of literature review, and findings related to these associations are discussed below: this study suggests a positive and significant impact of ind on the overall gdp of the country. however, on the basis of the results, the relevant hypothesis has been rejected as the negative impact of ind on gdp has been identified. this outcome of the study is not validated by existing studies, as ndiaya and lv (2018) state that ind is positively associated with economic growth. however, the impact can be witnessed in a long way. similar results have been generated by opoku and yan (2019), which bring forth ind as an important booster of economic growth. the discrepancy in results might be due to the slow process of industrialization in iraq, which leads the negative outcome. a positive and significant impact between deforest and the economic growth of the country has also been assumed by this study. on the basis of the results, this association is also rejected as the negative impact of deforest on gdp has been highlighted by the result. this result is validated by ajanaku and collins (2021), which indicates that deforestation and increased policies of forestation are not positively linked with economic growth. the studies of arshad et al. (2020) also indicate that deforestation can enhance environmental pollution, which negatively impacts sustainable development in the longer run. in the perspective of association formulated by this study, trd is positively associated with economic growth. this association is validated by the findings of the study that indicates a positive impact of trd on gdp. it implies that an increase in trade activities can potentially uplift the economic growth of a country. the findings of abendin and duan (2021) illustrate that trade has a significant and positive association with economic prosperity, and akadiri et al. (2020) also find that efficient trade activities and policies and increased fdi can positively impact sustainable economic growth. accordingly, as per the agbioforum, 25(2), 2023 | 39 abid, mardood, abdullah, madi, ali, al-muttar, mohammed, al_lami, sayed-lafi — sustainable economic growth in iraq… outcomes of this study, the result of this study has been validated, and the positive impact of trd on economic growth has been identified. the other association of this study has bring forth the positive impact of emp on economic growth. as per the results, the negative impact of emp has been indicated on gdp resultantly this association assumed by this study is rejected. the existing studies offer contrasting results as in view of seyfried (2011), emp and economic growth are positively linked with each other as the increase in emp enhances economic growth, and enhancement in economic growth exerts an immediate impact on emp. the cause of the difference in the results of this study as compared to past studies is might be due to some mismanagement in data. furthermore, the impact of al on economic growth is also positive and significant, as suggested by this study. however, as per the results of the study, a positive but insignificant impact has been examined. on the basis of insignificant impact, the respective association of the study has been rejected. ben jebli and ben youssef (2017) also indicate an insignificant impact of arable land use on gdp. however, barbier (2004) indicates that expansion in agricultural land can be significantly correlated with economic development, but this impact follows the long run. on this basis, the outcomes of this study can be validated to some extent, as previous studies indicate mixed results in this aspect. in addition to all these determinants, the positive association of technological development with economic growth has also been suggested by this study. however, due to a lack of responses on technological advancements within the context of iraq, this determinant has been omitted. the cause of this omission is not yielding of authentic results due to the unavailability of relevant data. 5.1 conclusion this study aims to examine the sustainable economic growth in iraq thus, the impact of ind, defores, trd, al, and em has been examined on economic growth. the data has been collected from secondary sources using a quantitive approach. in addition, a time span of 2000 to 2021 has been observed in this study while collecting the data. for analysis, remarkable tools like fmlos, dols, and ccr are used. on the basis of results, it has been found that only trd positively and significantly impacts economic growth. however, ind, defores, and em do not exert a positive impact on economic growth. moreover, al also insignificantly impacts economic growth. the outcomes of the study imply that to enhance sustainable economic growth within the context of iraq, significant trade policies and activities should be enhanced. in this accordance, the findings of this study offer a significant contribution to policy-makers in iraq. 5.2 implications of the study • theoretical implications this study can offer significant theoretical contributions to understand the notable impact of trade on economic growth. an efficient understanding of the association between determinants that impact economic growth can help the formulation of theories and concepts associated with economic growth. moreover, a lack of such study within the context of iraq expands the literature and enhances the learning of scholars in iraq. • practical implications this study has significant implications for economists, practitioners of different sectors, and policy-makers of the respective country. outlining the positive impact of numerous variables on economic growth, this paper enhances the insight of policy-makers to keenly consider those aspects which offer more efficient results. in this accordance, the formulation of policies related to trade activities should be focused by the policy-makers. furthermore, the practitioners of various sectors (industrial, manufacturing, and agricultural) can also understand the aspects which can encourage them to increase their productivity to significantly contribute to the economic growth of their respective countries. 5.3 limitations it is impossible to cover all aspects in one study therefore, besides its contributions, this paper has some limitations as well. to examine the impact of selected variables on economic development, this paper was limited to the context of iraq. this limitation can impact the effectiveness and generalizability of the results. following the quantitative approach, a secondary way of data collection has been utilized by the researcher, which impacts the reliability of the results. the data has been collected from a limited time frame, i.e., from 2000 to 2021, which impacts the overall effectiveness of results. besides this, very specific determinants have been considered in this study which does not offer a broader picture of sustainable economic development. 5.4 future research indications on the basis of mentioned limitations, following directions can be recommended to future researchers. ➢ future studies should consider the usage of primary data for more reliable results. a survey-based or interview-based study can be conducted in this regard. ➢ a cross-border study should be conducted to examine if the impact of selected determinants has changed on the economic development of other countries. ➢ other determinants of economic development like socio-political aspect, human resources, natural resources, and capital formation, have also been considered by future studies to provide a broader overview of economic development. ➢ data from a longer time span should be considered to offer more efficient outcomes. references abdulateef, m. f., & al-alwan, h. a. 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https://doi.org/10.2307/2951679 https://opendocs.ids.ac.uk/opendocs/handle/20.500.12413/13838 https://opendocs.ids.ac.uk/opendocs/handle/20.500.12413/13838 http://www.ser.tcu.edu/2005/ser2005%20seyfried%2013-24.pdf http://www.ser.tcu.edu/2005/ser2005%20seyfried%2013-24.pdf https://produccioncientificaluz.org/index.php/opcion/article/view/32010 https://produccioncientificaluz.org/index.php/opcion/article/view/32010 https://policycommons.net/artifacts/1519591/world-development-indicators-2006/2199923/ https://policycommons.net/artifacts/1519591/world-development-indicators-2006/2199923/ https://doi.org/10.1016/j.scs.2019.101758 https://doi.org/10.1016/j.energy.2021.122365 agbioforum, 25(2): 13-22. ©2023 agbioforum matalak, hussein, dhahim, mardood, ali, mohammed, al-adday, khudair, al-qader — factors affecting sustainable agriculture in iraq….. factors affecting sustainable agriculture in iraq: evidence from employment, cpi, rents, and policies ghaleb yassin farhan matalak* college of education/ al-kitab university/ iraq email: ghalib.yaseen@uoalkitab.edu.iq talib kh. hussein al-hadi university college, baghdad,10011,iraq. email: talibferdoos74@yahoo.com ammar dhahim college of education/ al-farahidi university, baghdad, iraq nidhal raheem mardood department of accounting / college of management and economic/ al-esraa university/baghdad, iraq email: mardood@gmail.com muqdad hussein ali college of media, department of journalism/ the islamic university in najaf, najaf, iraq rajaa jasim mohammed department of management/ al-nisour university college/ baghdad/ iraq email: rajaa.j.bs@nuc.edu.iq ahmed razzaq al-adday department of computer technical engineering, technical engineering college, al-ayen university, thi-qar, iraq email: aladday@alayen.edu.iq akhlas na'ama khudair medical laboratory technology/ ashur university college/baghdad/ iraq email: akhlas.n.k@au.edu.iq ahmed ayad abdo al-qader9 college of pharmacy/ national university of science and technology, dhi qar, iraq email: ahmed.ayad@nust.edu.iq *corresponding author: ghaleb yassin farhan matalak; email: ghalib.yaseen@uoalkitab.edu.iq this research examines the current state of sustainable agricultural development in iraq and explores its association with various factors. data were obtained from reputable sources such as the world bank database, and econometric tests were used. utilizing the autoregressive distributed lag model (ardl), the study analyzes the impact of agricultural employment (ea), consumer price index (cpi), agriculture policies including crop production index (crop) and arable land (al), and natural resource rents (nr) on sustainable agricultural development (sda) in both short and long terms. the results reveal that crop positively and significantly influences sda in the short and long run, while cpi and al also positively affect sda. nevertheless, cpi has an insignificant influence in the long run. nr negatively impacts sda in the short and long run. the study's findings contribute to understanding the role of these factors in promoting sustainable agricultural development in iraq, suggesting beneficial insights for policymakers and researchers in the environmental and agricultural sectors. keywords: sustainable agricultural development, consumer price index, agricultural employment, natural resource rents, iraq 1. introduction in response to global climate threats, the international agricultural community emphasized the need for sustainable agricultural developments. due to the increased demand for production and food, the agro sector globally shifted towards attractive and accessible sources, which raised serious environmental concerns (stephens et al., 2020). in such context, the agro sectors worldwide are responsible for tackling food insecurity and sustainable observation. iraq's agriculture sector in this regard is not an exception. the consumer demand in iraq is increasing annually, provoking the need for more production of food and crops. at this point, the significant potential of sustainable value chain development is noteworthy. recently, climate change drastically transformed production methods and ways in this region (shukr, 2023). adopting different energy alternatives and revising energy consumption plans are clear evidence of the agricultural sector's sustainable development and growth. in the middle east, the competitiveness in the value chain is pushing iraq’s agricultural sector to align with the national development growth to ensure food security, employment creation, and inclusive growth. it is estimated by the international trade centre that agribusiness by 2030 is likely to see growth in the form of additional jobs and employment (rafique, 2022). therefore, these sustainable development reforms are a way of hope for the agribusiness of iraq. the process of sustainable agricultural development in iraq is under the impact of various factors, including the availability of resources, governance, employment mailto:ghalib.yaseen@uoalkitab.edu.iq mailto:talibferdoos74@yahoo.com mailto:mardood@gmail.com mailto:rajaa.j.bs@nuc.edu.iq mailto:aladday@alayen.edu.iq mailto:akhlas.n.k@au.edu.iq mailto:ahmed.ayad@nust.edu.iq mailto:ghalib.yaseen@uoalkitab.edu.iq agbioforum, 25(2), 2023 | 14 matalak, hussein, dhahim, mardood, ali, mohammed, al-adday, khudair, al-qader — factors affecting sustainable agriculture in iraq….. opportunities, and agricultural policies. before planning sustainable development plans, it is necessary to assess the significance of these factors in establishing the proposition for future programs. the researchers in this area investigated sustainability development issues in different contexts. they considered the role of government, policies, infrastructure, resources, and the economic status of the country (awadh, al-mimar, & yaseen, 2021; zarei, 2020). employment in agriculture and resource management is also observed in previous studies (sulaiman et al., 2019). the primary focus was given to the energy resources, the requirements, and the standards of the current production environment was dealt with critically in the context of countries that are under the influence of geo-political changes (altaiy, al-salhi, & al-mashadani, 2020; salman et al., 2020). the current analysis of the agricultural sector in iraq thus demands a broader perspective on the factors associated with sustainable developments and growth in the respective industry. moreover, no previous study dealt with these issues collectively in the context of iraq. this research gap, therefore, needs to be filled by providing an in-depth analysis of the situation. figure 1. assistance needed by agrifood smes to sustain environmental developments source: ict agribusiness the above debate highlighted the significance of conducting a broader research study considering the role of agricultural and non-agricultural factors in determining sustainable development in iraq's agricultural sector. thus, the study's primary aim is to examine the current sustainable developments in the agriculture sector of iraq. the researcher aims to fulfill the following objectives: 1) to study the role of agricultural employment on sustainable agricultural development, 2) to analyze the cpi in association with the sustainable agricultural goals, 3) to study the significance of natural resource rents in sustainable agricultural developments 4) to study the role of agricultural restructure policies on the sustainable agricultural development. the researcher followed a quantitative research method and utilized secondary databases to gather evidence on the respective issues in iraq. therefore, the study holds a significant research purpose and will be valuable to contemporary researchers. it also has significant practical implications for environmental and agricultural policymakers. it develops a base for understanding agricultural issues in iran, which will give constructive future directions to improve sustainable development. 2. literature review 2.1. theoretical background the current study aims at investigating the impact of agricultural employment, cpi, natural resources rent and agricultural restructuring policies on sustainable development in agriculture in iraq. over the past few decades, sustainable agricultural development has gained immense scholarly attention as it is related to various other critical concerns such as food security, ecological conservation and socio-economic growth (aliyas, ismail, & alhadeedy, 2018). the present study is based on the agricultural transformation theory originally proposed by ester boserup. the theory of agricultural transformation is centred around the idea that with the increasing population and subsequently growing demands for food, restructuring the agricultural policies and introducing technological innovation are necessary to boost agricultural productivity. the theory maintains that to meet the global food demand, more farmers should be hired who should adopt modern agricultural strategies (allen & ballard, 2001). the present study aims at exploring how natural resource rent, cpi, and agricultural employment impact sustainable agricultural development within the framework of agricultural transformation theory. figure 2.1: conceptual framework agricultural employment cpi natural resources rent agricultural restructure policies sustainable agricultural development agbioforum, 25(2), 2023 | 15 matalak, hussein, dhahim, mardood, ali, mohammed, al-adday, khudair, al-qader — factors affecting sustainable agriculture in iraq….. 2.2. impact of agricultural employment on sustainable agricultural development 334 agricultural employment can have a significant impact on sustainable agricultural development. a well-managed workforce can enhance agricultural outputs and improve sustainability in this sector. agricultural employment is a source of livelihood support for people in rural areas. it is a primary factor which decreases poverty and improves lifestyles in rural communities by increasing people’s income. thus, it leads to inclusive agricultural development in rural areas (harwood, 2020). the agricultural sector has always employed a large portion of the population in iraq. however, over the decades, agricultural employment has been influenced by political instability and economic crises in the country. moreover, various international conflicts and lack of access to the latest farming tools have also influenced agricultural employment in iraq. agriculture sector in iraq has the potential to absorb a larger amount of labour than any other industry in the country (jongerden et al., 2019). studies have concluded that up to 50% of rural households have their agricultural land. moreover, almost 7% of households in urban areas of iraq own their agricultural lands (beer, 2016). in 2017, 16% of the male population was employed in the agriculture sector which was previously 13% in 2000. on the other hand, the female population in the agriculture sector went from 26% in 2000 to 44% in 2017. however, the agricultural workforce in iraq mostly consists of the migrant workforce (jongerden et al., 2019). alsudani and alhiyali (2021) conducted a study to investigate the structure of employment in the agriculture sector of iraq. the study affirmed that a well-trained workforce is one of the most important factors to achieve agricultural objectives. agricultural productivity depends on labour productivity. with the advent of agricultural transformation and increasing demands for food, world leaders are introducing strategies to improve workforce productivity and increase agricultural productivity through technological innovations. the study concluded that new policies for effective management of agricultural labour must be implemented which will, in turn, boost agricultural development. h1: agricultural employment has a significant and positive impact on sustainable agricultural development. 2.3. impact of consumer price index (cpi) on sustainable agricultural development 369 the consumer price index (cpi) refers to the measurement of the change in prices based on a representative collection of goods and services over a certain amount of time (topuz, yazdifar, & sahadev, 2018). in the agricultural sector, cpi measures the changes that take place in the prices of products and services associated with agriculture. this includes various products like crops, livestock and agro-chemicals and farming tools. cpi reflects the prices of these agricultural products and services which have a direct influence on the farmers, consumers and the agricultural sector (shrestha, staab, & duffield, 2019). cpi in iraq went from 120.70 points in april to 120.40 points in may 2023 (economics, 2023). in the context of agriculture, changes in cpi can affect both farmers and consumers. if there is an increase in agricultural productivity due to technological innovations and labour intensification, it can increase food production and subsequently affect the cpi. if the productivity of food surpassed the food demands, it results in a lowering of prices for products, which would be a benefit for the consumers. however, if the food demand increases at a faster rate than food productivity, it would cause an increase in food prices, which would harm food security everywhere. therefore, sustainable agricultural practices are necessary to maintain food prices and meet food demands (bai et al., 2021). moreover, changes in the cpi have a direct influence on the prices of agrochemicals and farming tools. if the prices of agricultural tools increase due to inflation, it affects the production cost as well as the profits of farmers. this can pose a challenge for the farmers in adopting sustainable agricultural practices. moreover, the primary objective of sustainable development in agriculture is to ensure food security all over the world. however, fluctuations in the prices of food products cause major obstructions in the way to achieving sustainability in the agricultural sector and food security. the cpi has a significant impact on the incomes and lifestyles of the farmers. in times of inflation, farmers find it very difficult to adopt sustainable agriculture practices (czyżewski, matuszczak, & miśkiewicz, 2019). rising inflation is impeding sustainable agricultural development in iraq (salih, 2022). h2: the cpi has a significant and negative impact on sustainable agricultural development. 2.4. impact of natural resource rent on sustainable agricultural development natural resource rent refers to the amount of profit gathered from the use of natural resources such as land, forests and minerals. with the increasing agricultural transformation, the excessive exploitation of natural resources has become a key area of study in the context of sustainable agriculture. one primary goal of sustainable agricultural development is the moderate consumption of natural resources and conservation of ecological resources while improving agricultural productivity to meet global food demands. however, in the conventional models of agriculture, the intensification of agricultural practices has led to over-consumption of natural resources and exploitation of ecological resources. the increasing natural resource consumption is overburdening the natural environment which can obstruct the achievement of sustainable development in agriculture (huang, sadiq, & chien, 2021). natural resource rents have played a significant role in improving developing economies (ibrahim & ajide, 2021). at the same time, they have raised concerns about the exploitation of natural resources and the subsequent environmental degradation (ikram et al., 2020). furthermore, environmental degradation due to carbon dioxide emission is a major concern in the context of iraq. moreover, with the provision of incentives, resource rents agbioforum, 25(2), 2023 | 16 matalak, hussein, dhahim, mardood, ali, mohammed, al-adday, khudair, al-qader — factors affecting sustainable agriculture in iraq….. promote more exploitation of the natural environment (wang, zhang, & li, 2023). studies have shown that natural resource rents promote unsustainable agricultural practices which lead to loss of soil fertility, water contamination and exploitation of the ecosystem (huang, sadiq, & chien, 2021). h3. natural resource rents hurt sustainable agricultural development. 2.5. agriculture restructure policies and their impact on sustainable agricultural development in the post-war era, the government is iraq introduced various agricultural restructuring policies. these policies relied on a neoliberal approach which promotes the role of the free market, privatization of the agricultural sector, and minimal state intervention in the agricultural sector. the neoliberal approach focuses on removing any trade barrier in agriculture and allows a free flow of agricultural products at domestic and international levels. iraq has also introduced free trade policies for the agricultural sector (jongerden et al., 2019). past studies have shown that agricultural restructuring policies can have a significant impact on sustainable development in agriculture. agriculture policies must align with specific goals of sustainable development in agriculture. the policies which promote resource-efficient agricultural practices can increase sustainability in the agriculture sector. moreover, the introduction of various incentives for the moderate use of natural resources and conservation of the natural environment can help a country in achieving sustainable development in agriculture (ngoc, hung, & pham, 2021). furthermore, the use of sustainable agricultural technologies should also be introduced in the agricultural policies, it can increase agricultural productivity with minimal exploitation of natural environment and resources. the agriculture sector in iraq consumes 40% of land and up to 70% of natural resources. therefore, restructuring agricultural policies is very crucial to achieve sustainable development in agriculture. the government needs to introduce environment-centred agricultural policies which promote minimal use of harmful agrochemicals and diversification of crops to avoid reliance on a single crop. such practices can enhance agricultural productivity to attain food security and at the same time promote the conservation of natural resources. they cause less harm to the fertility of the soil and promote efficient use of water for irrigation purposes. moreover, sustainable practices in agriculture will also control desertification of land in iraq. the 70% of total area in iraq is covered by desert. thus, implementation of sustainable agriculture policies can help in conservation of non-renewable resources which can create a natural balance in the consumption of these resources (aliyas, ismail, & alhadeedy, 2018). h4: agricultural restructuring policies have a significant and positive impact on sustainable development in agriculture. 3. research methodology the present research aims to analyze the role played by agricultural employment, cpi, natural resource rent and agricultural restructuring policies on the sustainable development of agriculture in iraq. a secondary timeseries quantitative research methodology has been selected to meet the research objective. research methodology is always selected based on the research aims and objectives as the concept of the present research is central towards assessing sustainable development in the agricultural sector of iraq, so this research design has been selected. the extent of quality and the result's accuracy is highly dependent on the sources from where data is gathered. therefore, the data regarding the variables involved have been gathered through the world development indicator. according to the website of world development, indicators ensure access to data along with information regarding the type of indicators available and how they are gathered and can be visualized to assess development trends. 3.1. variables description there are four explanatory variables: agricultural employment, cpi, natural resource rent and agricultural restructuring policies. sustainable development in agriculture has been estimated as the dependent variable. data regarding these variables have been collected from wdi within the time duration of 2000-2021. 3.1.1. consumer price index according to diewert (1998), the consumer price index is an instrument utilized to measure inflation. it has been used in the present research context to assess the average variation between two periods. 3.1.2. natural resource rent natural resource rent is the sum of natural gas rents, oil rents, forest, coal and mineral rents. in the present study, natural resource rents are estimated as the variation between the price of a commodity and the average cost of producing it (khan et al., 2020). 3.1.3. agriculture restructure policies under this agriculture policy, restructure the provision regarding agriculture implements and the latest machinery to the farmers on subsidy. agricultural employment has been studied as a tillage and soil cultivation factor (ngoc, hung, & pham, 2021). the present research has studied horticultural or agricultural commodities' cultivation, production, harvesting and growing. 3.1.4. sustainable development in agriculture in the present study, sustainable agricultural development has been studied as the conservation and management of natural resource base and the orientation of institutional and technological change in such a way as to ensure the satisfaction of human needs (gouda et al., 2018). 3.2 econometric model the researcher has implemented the "autoregressive distributed lag model ardl" in the present research. according to bahmani-oskooee and ng (2002), ardl model can be defined as a “parsimonious infinite lagdistributed model”. it is a famous co-integration technique applied widely by researchers. agbioforum, 25(2), 2023 | 17 matalak, hussein, dhahim, mardood, ali, mohammed, al-adday, khudair, al-qader — factors affecting sustainable agriculture in iraq….. 3.2.1. linear regression the linear regression model is the basic econometric model as it serves as the basis for its required level tests in econometric testing and can be demonstrated through the following equation: y = βx + ε (1) x&y represents vectors of observations, ε refers to the "residual vector" that is shown in the model, and β shows the vector that exists between "coefficients of this law and the intercept" (seber, 2012). β can be observed by using the "ordinary least square method", which minimizes the "sum of squares of the residuals". the equation constructed for the measurement of β using ols is as follows: �̂� = (𝑋𝑇𝑋1)−1𝑋1𝑌 (2) 3.2.2 model specifications for estimating the long and short-run associations among variables of a study, the cs-ardl model is preferred. through this model, robust estimations can be generated along with efficient regressors compared to other data analysis techniques. cs-ardl model also deals with the csd "cross-sectional dependence" and sh "slope heterogeneity". this model can be shown through the following equation: 𝛥𝑆𝐷𝐴 = 𝜗𝑖 + ∑ 𝜗𝑖𝐼𝛥𝑆𝐷𝐴𝑖,𝑡 𝑝 𝐼=1 + ∑ 𝜗𝑖𝐼𝛥𝑍𝑠,𝑖,𝑡−1 + 𝑝 𝐼=1 ∑ 𝜗𝑖𝐼𝛥�̅�𝐶𝑖,𝑡−1 1 𝐼=1 + 𝜀𝑖,𝑡 sda represents the sustainable development of agriculture, which is the dependent variable in this research; ac represents the different cross-sections, and z represents the control and independent variables. 3.3.3. unit root test unit root test is applied to assess the integration level of the variables. the null hypothesis of the unit root test supports that the unit root is present and the data is non-stationary. conversely, the alternative hypothesis declares the absence of unit root and the presence of stationarity. 𝛥𝑦𝑖,𝑡 = 𝑎𝑖 + 𝜌𝑦𝑖,𝑡 − 1 + ∑ 𝑎𝐽𝛥𝑦𝑖,𝑡−𝐽 𝑝𝑖 𝐽=1 + 𝜀𝑖,𝑡 4. results 4.1 descriptive statistics the normality of the variables is assessed using the jarque-bera test. with p-values greater than 0.05, sda, al, crop, ea and nr follow a normal distribution, while cpi does not follow a normal distribution. table 1: descriptive statistics sda al cpi crop ea nr mean 5.217196 20.28621 10.60322 118.8867 24.03536 47.71791 median 4.929408 20.41737 4.978962 123.7300 24.15543 46.97211 maximum 8.562672 21.46924 53.23096 158.2400 27.58526 65.31850 minimum 2.815818 18.07423 -10.06749 72.50000 20.05735 27.41701 std. dev. 1.594552 1.047183 15.42864 25.65365 2.748806 9.863784 skewness 0.631030 -0.494909 1.338564 -0.488054 -0.075404 0.070909 kurtosis 2.648281 2.052372 4.082468 2.387715 1.461651 2.717598 jarque-bera 1.501938 1.643021 7.296403 1.161718 2.090603 0.087380 probability 0.471909 0.439767 0.026038 0.559417 0.351586 0.957251 sum 109.5611 426.0105 222.6676 2496.620 504.7425 1002.076 sum sq. dev. 50.85193 21.93183 4760.860 13162.20 151.1187 1945.885 observations 21 21 21 21 21 21 “sda= sustainable agriculture development, al= arable land, cpi= consumer price index, crop= crop production index, ea= employment in agriculture, nr= natural resource rents” secondly, the researcher assessed the stationarity and integration order of the variables, as displayed in the table below. the unit root analysis is carried out with a critical threshold of 5% and a null hypothesis stating the nonstationarity of the variable. the results of the level stationarity test indicate that cpi, crop and nr variables are stationary. all variables are stationary in the first difference. table 2: unit root analysis i(0) i(1) sda -1.652478 -4.264223** al -1.860033 -4.189438** cpi -4.022886** -4.414524** crop -4.930593** -3.336792* ea -1.680206 -3.027451* nr -4.375085* -4.263034** “sda= sustainable agriculture development, al= arable land, cpi= consumer price index, crop= crop production index, ea= employment in agriculture, nr= natural resource rents” the bounds test is employed to confirm the presence of long-term cointegration relationships. the results of the ardl bounds test in table 3 reveal that the f-statistical value of 19.92 exceeds the upper bounds at critical level thresholds of 1%, 2.5%, 5%, and 10%. as a result, we reject the null hypothesis, indicating the presence of longterm cointegration relations. table 3: ardl bound test test statistic value k f-statistic 19.92684 5 critical value bounds significance i0 bound i1 bound 10% 2.26 3.35 5% 2.62 3.79 2.5% 2.96 4.18 1% 3.41 4.68 the results of ardl estimation are displayed in table 6, where it can be seen that the previous value of sda does not have a significant impact on sda with a p-value of 0.1370. employment in agriculture positively influences sda with a p-value of 0.0002, indicating that the impact is significant at a 1% significance level. cpi was presumed to negatively influence sda; however, the agbioforum, 25(2), 2023 | 18 matalak, hussein, dhahim, mardood, ali, mohammed, al-adday, khudair, al-qader — factors affecting sustainable agriculture in iraq….. results showed that cpi positively and significantly affects sda with a p-value of 0.0169. similarly, crop has a positive impact on sda. with a p-value below 0.01, the positive association between crop and sda is significant. al positively impacts sda in iraq with a β of 0.36. the association between al and sda is significant at a 5% significance level. the present study presumed that nr negatively impacts sda, which is supported by the results in table 4. nr has a negative and significant influence on sda, with a p-value of 0.0216. however, lagged value of nr does not significantly impact sda. table 4: ardl variable coefficient std. error t-statistic prob.* sda(-1) 0.229952 0.144279 1.593800 0.1370 ea 0.578257 0.108259 5.341402 0.0002 cpi 0.028854 0.010407 2.772552 0.0169 crop 0.021165 0.004150 5.100175 0.0003 al 0.360410 0.136568 2.639054 0.0216 nr -0.100507 0.018823 -5.339678 0.0002 nr(-1) -0.024849 0.018577 -1.337654 0.2058 c -13.91874 4.105627 -3.390162 0.0054 r-squared 0.953024 mean dependent var 5.246318 adjusted r-squared 0.925622 s.d. dependent var 1.630236 s.e. of regression 0.444605 akaike info criterion 1.505912 sum squared resid 2.372080 schwarz criterion 1.904205 log likelihood -7.059121 hannan-quinn criter. 1.583663 f-statistic 34.77861 durbin-watson stat 1.780115 prob(f-statistic) 0.000000 *note: p-values and any subsequent tests do not account for model selection. “sda= sustainable agriculture development, al= arable land, cpi= consumer price index, crop= crop production index, ea= employment in agriculture, nr= natural resource rents” concerning long-term association, it can be noted that all the explanatory variables have the same signs of coefficients. nr negatively and significantly influences sda in the long run, with a p-value of 0.012. similarly, crop has a significant influence on sda. nevertheless, al and ea do not significantly impact sda in the long run, as the p-value exceeded 0.05. table 5: long run coefficients variable coefficient std. error t-statistic prob. al 0.251082 0.398410 0.630211 0.5930 cpi 0.074542 0.036337 2.051402 0.1767 crop 0.043430 0.004230 10.267103 0.0094 ea 0.496025 0.208102 2.383571 0.1400 nr -0.179257 0.019945 -8.987498 0.0122 c -8.533900 12.908543 -0.661105 0.5765 “al= arable land, cpi= consumer price index, crop= crop production index, ea= employment in agriculture, nr= natural resource rents” table 6 depicts the short-term results. al's present value positively influences sda; however, the impact is insignificant, with a p-value of 0.32. at t-1, al negatively influences sda; the association is insignificant, similar to the previous result. cpi positively and significantly impacts sda, whereas the lagged value of cpi negatively and insignificantly influences sda. with a p-value of 0.0067, crop significantly and positively impacts sda in the short run. similar to the long-run association, ea does not significantly influence sda in the short run while nr negatively and significantly influences sda. table 6: cointegration form variable coefficient std. error t-statistic prob. d(al) 0.320000 0.246784 1.296680 0.3242 d(al(-1)) -0.433725 0.188921 -2.295803 0.1486 d(cpi) 0.045866 0.010412 4.405216 0.0479 d(cpi(-1)) -0.018078 0.016452 -1.098842 0.3864 d(crop) 0.027268 0.002238 12.182726 0.0067 d(crop(-1)) -0.011897 0.009138 -1.301907 0.3227 d(ea) 0.838716 0.519501 1.614466 0.2478 d(ea(-1)) 0.747166 0.157976 4.729628 0.0419 d(nr) -0.107651 0.016305 -6.602361 0.0222 d(nr(-1)) 0.044638 0.019408 2.299960 0.1482 cointeq(-1) -0.909289 0.195323 -4.655319 0.0432 “al= arable land, cpi= consumer price index, crop= crop production index, ea= employment in agriculture, nr= natural resource rents” figure 2 illustrates the distribution of the residuals. firstly, the histogram appears to have a bell-shaped curve; the small jb value of 0.230 and probability of 0.887 indicate that the error terms are normally distributed. figure 2: regression standardization residuals agbioforum, 25(2), 2023 | 19 matalak, hussein, dhahim, mardood, ali, mohammed, al-adday, khudair, al-qader — factors affecting sustainable agriculture in iraq….. autocorrelation is tested using the lm test, as shown in table 7. the results showed that the null hypothesis is rejected at the significant level of 5%, indicating that autocorrelation is not present among residuals. table 7: breusch-godfrey serial correlation lm test f-statistic 1.904017 prob. f(1,1) 0.3992 obs*r-squared 12.45734 prob. chi-square(1) 0.0004 the p-values are higher than the significance level of 0.05 in table 8. as a result, we do not reject the null hypothesis and can infer that residuals are homoscedastic. table 8: heteroskedasticity test f-statistic 3.241182 prob. f(1,16) 0.0907 obs*rsquared 3.032105 prob. chisquare(1) 0.0816 considering the structural changes in the economy of iraq, it is probable that the macroeconomic series might experience one or multiple structural breaks. the cumulative sum (cusum) and cumulative sum of squares (cusumsq) tests are employed to assess the stability of both short-run and long-run coefficients. figures 3 and 4 depict the test statistics, falling within the critical bounds of 5% significance. this suggests that the estimated parameters remain stable over the period indicated. figure 3: plot of cusum figure 4: plot of cusum square 5. discussion in the contemporary era, validated experts have reported a significant increase in demand for agricultural products which is predicted to increase in 2050 by 70% (kumawat, razdan, & saharan, 2022). the significant growth in human population and increasing depletion of nonrenewable energy sources tend to enhance agricultural production in a sustainable manner. in this accordance, sustainable agricultural development caught the attention of many experts and researchers. grounding on the gap from previous studies, this paper tends to explore sustainable agricultural development within the context of iraq. accordingly, the impact of employment in agriculture (ea), consumer price index (cpi), crop production index (crop), arable land (al), and natural resources (na) has been examined on sustainable agricultural development (sda). the section of the literature review assists the formulation of associations among the selected variables, and overviewing these associations, four hypotheses were formulated, which are comprehensively discussed below. as per the results of the study, the impact of selected variables on sda has been examined in short and long runs. the first association formulated by this study indicates that ea exerts a positive and significant impact on sda. as per the results of the study, ea positively impacts sda, but its impact is not significant in the shorter and longer run. it implies that with the efficiency of employment in agriculture, sustainable agricultural practices have not significantly increased. indicating an insignificant impact, the respected hypothesis of the study has been rejected. in contrast to it, the studies of edeme et al. (2020) in existing literature indicate that agricultural productivity is significantly associated with employment in agriculture however, this impact is dependent on the infrastructure that supports agricultural practices. the contrast in results indicates the error of data in this study. the second association of the study indicates that cpi is positively and significantly associated with sda. as per the results of the study, the positive impact of cpi has been indicated, but in the longer run, this impact is insignificant. the achieved results demonstrate that with an efficient consumer price index, sustainable agricultural development can be enhanced, but this impact becomes insignificant in the longer run. the studies of mahmoud (2015) support this result as it highlights that cpi is significantly linked with the gdp of the country. following the link, the respective researcher believes that an increase in cdi can be used to address the issues of weak agriculture. this, in turn, can potentially enhance sustainable agricultural development. the next association of this study highlights that crop is positively and significantly associated with sda. the results of the study indicate that crop significantly and positively impacts sda in both the shorter and longer run. the respected hypothesis thus has been accepted. it implies that an increase in the index of crop production can remarkably pave the path of sustainable agricultural development. however, this outcome is not supported by previous studies as omodero (2021) highlights that the food production index is positively linked with poverty reduction (a significant dimension of sda) however, the agricultural output index is negatively associated with a reduction in poverty. the negative impact on the reduction of poverty indicates a negative impact on sda. likewise, sarkodie and owusu (2017) also highlight that a 1% increase in crop production indicates 0.52% carbon emission. as per the results, carbon emission is negatively associated with sda as sustainable practices agbioforum, 25(2), 2023 | 20 matalak, hussein, dhahim, mardood, ali, mohammed, al-adday, khudair, al-qader — factors affecting sustainable agriculture in iraq….. do not allow carbon emission. accordingly, the difference in results of this study from previous studies indicates mismanagement of relevant data. the further association of this study indicates that al is positively and significantly associated with sda. as per the results of the study, al positively impacts sda in the short run, while this impact is not significant in the long run. this implies that al can potentially enhance sda however, this impact is no longer. the studies of naderi and danesh-shahraki (2013) have yielded similar results as it indicates that limitation in al adversely impacts agricultural development, which highlights that the efficiency in al is positively linked with sda. tian et al. (2021) also highlight the shortage of al threatened sustainable agricultural practices, which indicates the positive association of al with sda. subsequently, this outcome of the study is validated. moreover, this study has highlighted that nr is positively and significantly associated with sda. however, as per the results, a negative association of nr has been indicated with sda. the outcomes are validated as chopra et al. (2022) also indicate a negative association between nr and agricultural productivity. however, pant and hambly-odame (2009) state that the approach to nr and sda is a significant conceptual tool. the author further suggests innovation in nr to increase its impact on sda. 5.1 conclusion the aim of this study is to examine sustainable agricultural development in iraq by exploring the impact of significant factors. in this accordance, the impact of ea, cpi, crop, al, and nr on sda has been evaluated. the data has been collected using the medium of secondary data collection thus, reputable resources like research articles from respective journals, data from the world bank database, from the official website of the agricultural sector, and from econometric tests were utilized. based on analysis by ardl, the following results have been generated: ➢ ea positively impacts sda in the shorter and longer run however, this impact is insignificant. ➢ cpi positively impacts sda however, this impact is insignificant in the longer run. ➢ crop positively and significantly impacts sda in both the longer and shorter run. ➢ al positively impacts sda in the shorter run, while in the longer run, this impact is insignificant. ➢ nr negatively impacts sda in the longer and shorter run. 5.2 theoretical and practical implications this study has remarkable implications as, on the theoretical level, this paper expands the literature related to sda. following the increased importance of sda in present times, further exploration of it has been done by examining the numerous variables. in this accordance, the perspective related to sda had further developed on theoretical grounds. moreover, on the basis of the gaps in existing literature, this study offers significant outcomes for scholars and experts. the contribution of this study is also remarkable on practical grounds, as by indicating the impact of selected variables, the outcome of this study indicates which variables are significantly associated with sda. on the basis of these outcomes, sustainable practices have been enhanced by practitioners in the agricultural sector. furthermore, these outcomes have significant implications for policy-makers as it assists them in drawing policies for sda while considering the significant factors outlined by this study. 5.3 limitations and future research indications despite its significant contribution to existing literature, this study has some limitations that can pave the path for future researchers. ➢ at first, this study observe a contextual limitation as data has been collected only within the context of the agricultural sector in iraq. future studies can collect data from multiple other locations to increase the generalizability of the outcomes. ➢ at second, this study follows the secondary form of data collection, which restricts the reliable outcomes of this study. future studies can conduct primary data collection from practitioners, managers, and employees working in the agricultural sector to view their perspectives related to the determinants of sda. ➢ at third, this study was limited to its determinants as the contemporary innovative practices related to sda have not been examined. to efficiently expand the topic, future studies can examine the impact of other factors like innovativeness, smart technology, ai, and machine learning on sda. references al-taiy, h., al-salhi, a., & al-mashadani, a. 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(2020). the water-energy-food nexus: a holistic approach for resource security in iran, iraq, and turkey. water-energy nexus, 3, 81-94. doi: https://doi.org/10.1016/j.wen.2020.05.004 https://doi.org/10.3390/su12083437 https://doi.org/10.4491/eer.2016.135 https://doi.org/10.1016/j.biombioe.2019.03.003 https://kujas.uokirkuk.edu.iq/article_179819_093347a93aaf1018283b1f1ee6fc97a7.pdf https://kujas.uokirkuk.edu.iq/article_179819_093347a93aaf1018283b1f1ee6fc97a7.pdf https://doi.org/10.1016/j.agsy.2020.102873 https://doi.org/10.1007/s12665-019-8510-y https://doi.org/10.1111/tpj.15107 https://doi.org/10.1057/s41272-017-0125-x https://doi.org/10.1057/s41272-017-0125-x https://doi.org/10.1016/j.envres.2022.114637 https://doi.org/10.1016/j.wen.2020.05.004 agbioforum, 25(1): 107-117. ©2023 agbioforum building resilient sponge communities through government interventions: exploring the role of community and stakeholder participation in sustainable economic and environmental development xiaoxi guo* ph.d candidate, environment, development and sustainability, graduate school, chulalongkorn university, bangkok, phayathai rd., wangmai, pathumwan, bangkok, 10330, thailand email: kmroosevelt@126.com orcid: https://orcid.org/0000-0001-7823-0277 *coresponding author xiaoxi guo, email: kmroosevelt@126.com sponge communities, government interventions, and stakeholder participation are critical for achieving global economic and environmental development because they represent a unique intersection of local knowledge, policy-making, and collaborative action that can help balance competing demands for economic growth and environmental protection in a way that benefits both people and the planet. as a result, the study's goal is to evaluate the impact of community and stakeholder participation on longterm economic and environmental growth and the moderating role of regulatory interventions. using questionnaires, the study collected data from relevant communities. the smart pls was also employed to assess the data in the study. according to the study's findings, stakeholder and community participation has a good impact on sustainable development and the role of the government in providing support through policies and regulations. the research sheds light on mobilizing sustainable economic and environmental development via sponge communities. the study focuses on the difficulties and solutions sponge communities face, with implications for policymakers and others involved in implementing sustainable development projects. keywords: sustainable economic development, sustainable environmental development, stakeholder participation, sponge communities, community participation, government interventions introduction in recent decades, sustainability has emerged as a crucial global issue as the world's population continues to expand and resources become scarcer (jury & vaux jr, 2007; tzanakakis, paranychianakis, & angelakis, 2020). sustainable development aims to balance economic growth and environmental protection (birendra, dhungana, & dangi, 2021; mensah, 2019). it has become a top policy priority for governments and other stakeholders around the globe. sponge communities, which refer to communities that can absorb and store excess water during storms and other weather events, have emerged as a promising strategy for attaining sustainable development (zevenbergen, fu, & pathirana, 2018). (kirkby, o’keefe, & timberlake, 2023; tracey & anne, 2008) sustainable economic development refers to the capacity of a community to flourish and prosper economically while minimizing negative impacts on the environment. sustainable environmental development refers to a community's capacity to protect and enhance its natural resources, such as air, water, and land, to benefit current and future generations (olalekan, omidiji, & williams, 2019). participation of stakeholders is essential to sustainable development because it ensures that all community members have a voice in decision-making processes affecting their lives (rendon, osman, & faust, 2021). sponge communities are designed to absorb and store excess water during cyclones, reducing the likelihood of flooding and other water-related issues (yin et al., 2022). despite the potential benefits of sponge communities, their development faces several obstacles (liu, jia, & niu, 2017). these obstacles include the high cost of implementing green infrastructure, the lack of public awareness and comprehension of sponge communities, and policy barriers that impede their adoption (yin et al., 2022). to overcome these obstacles, a variety of solutions have been proposed, such as increased investment in green infrastructure, education campaigns to raise awareness, and policy changes to incentivize sustainable development (l. li et al., 2020; redondo bermúdez et al., 2022). there is a great deal of literature on sponge communities, but there are still several unanswered questions that the present investigation addresses. 1) the model, which includes elements such as community participation, stakeholder participation, government intervention, and sustainable economic and environmental development in china, has not been evaluated in recent years. 2) nguyen et al. (2019) investigated water management in sponge cities in a socio-economic context. however, the current study will also focus on sponge communities and economic development and other variables, such as community participation, stakeholder participation, and government intervention, with a new sample set, particularly in china. 3) butler et al. (2021) investigated sponge communities from an ecological standpoint; however, the current study will also focus on it and other variables such as community participation, stakeholder participation, and government intervention in vietnam with a new sample set. 4) ren et al. (2022) investigated the moderating role of government intervention; however, the current study will also investigate its moderating effect on the relationship between community participation, stakeholders' participation, government intervention, and economic and environmental development of sponge communities. china. 1) according to the concept of mailto:kmroosevelt@126.com https://orcid.org/0000-0001-7823-0277 mailto:kmroosevelt@126.com agbioforum, 25(1), 2023 | 108 guo — building resilient sponge communities through government interventions … sustainable economic and environmental development, the government leads the participation of other stakeholders in the construction of sponge communities (wang et al., 2021). accordingly, the purpose of the study was to 1) examine the sponge communities in the context of economic and environmental development; 2) although there is a great deal of literature on sponge communities, the present study will contribute to the literature on the topic in the context of china; and 3) provide a guideline as well as assistance to the economic and environmental professionals to review and provide support for the sponge communities to overcome the challenges they face. review of literature sponge communities are a type of urban water management system that seeks to improve the quality of stormwater runoff while also providing flood control, urban cooling, and habitat creation (nguyen et al., 2019; stefanakis, 2019; yin et al., 2022). these communities are constructed utilizing numerous green infrastructure techniques, including green roofs, rain gardens, permeable pavements, and bio-retention receptacles (suresh & biju, 2018). as part of the chinese government's efforts to combat water contamination and urbanization, sponge communities emerged in the early 2010s (y. qi et al., 2020; qi et al., 2021). since then, the concept has gained popularity in other regions of the globe as cities seek innovative and sustainable water management solutions (chan et al., 2022). the concept of sponge communities is supported by two critical variables: sustainable economic and environmental development (hawken et al., 2021). sustainable economic development balances economic growth, environmental protection, and social equity. in contrast, sustainable environmental development promotes the sustainable use of natural resources and the protection of ecosystems (duran et al., 2015). sponge communities can contribute to both sustainable economic and environmental development by providing a variety of benefits, such as reducing the costs of stormwater management, enhancing the quality of water resources, and increasing the livability of urban areas (o’donnell et al., 2020; wu et al., 2020). the participation of stakeholders is an additional essential variable in the evolution of sponge communities (wang et al., 2021). in addition to government agencies, stakeholders include local communities, private sector organizations, and non-governmental organizations. in this context, doria et al. (2021) examined whether stakeholders' participation influences the fisheries system's governance. the sample countries for the investigation were spain, bolivia, and peru. the research was empirical. as a sample, the study utilized the information of fifty fisheries stakeholders. using questionnaires, the sample information was gathered. according to the investigation's conclusions, local communities and private sectors are also stakeholders. moreover, stakeholder participation influences the governance of the fisheries system. participation of stakeholders in the design and implementation of sponge communities can help to ensure that the communities are adapted to the local context, that the benefits are shared among various groups, and that the communities are maintained over time (wang et al., 2021). despite the prospective benefits of sponge communities, their development faces several obstacles. in this context, liu et al. (2017) examined whether sponge cities solve urban water issues. in china, the investigation was conducted. the findings suggested that "sponge city" accurately describes an urban setting committed to identifying environmentally suitable alternatives to transform existing urban infrastructures into green infrastructures that can effectively collect, regulate, and utilize precipitation. the objective of a sponge city is to encourage the rehabilitation of drainage systems, the improvement of water system connections, the separation of rainfall and sewage piping networks, and other innovative engineering solutions to increase the city's capacity to deal with water issues. the dearth of awareness and comprehension among stakeholders regarding the benefits and potential of sponge communities is one of the greatest obstacles (zevenbergen et al., 2018). the lack of technical expertise and institutional capacity to design and implement sponge communities is a further obstacle (he et al., 2019). in addition, social and economic barriers, such as the perception that sponge communities are expensive or impracticable, may prevent widespread adoption (selerio et al., 2021). thus, the hypothesis derived from the preceding discussion is as follows: h1: there is a significant association between communities’ participation and sustainable economic and environmental development numerous studies have investigated the issues and solutions associated with forming sponge communities. population growth, urbanization, and climate change have resulted in floods, water pollution, ecological degradation, and water shortages in many regions of the globe, making urban stormwater management a pressing concern. to address these problems, numerous nature-based solutions (nbs) have been developed and implemented in numerous nations, including low-impact development, best management practices, sustainable drainage systems, water-sensitive urban design, green infrastructure, bluegreen cities, and blue-green infrastructure. in this context, fu et al. (2023) examined whether sponge cities are viable solutions to china's flooding problem. the findings suggested that sponge communities are crucial in preventing flooding in china. for instance, zevenbergen et al. (2018) conducted a case study of a sponge community in shanghai, china, and identified several management and maintenance challenges associated with the district. in addition, they proposed several solutions, including using information and communication technologies to monitor the community's performance and involve residents in its maintenance (zevenbergen et al., 2018). similarly, wang et al. (2021) reviewed sponge city initiatives in china and identified several financial, administrative, and technical challenges. they proposed several solutions, including forming public-private partnerships and creating capacity-building programs for local officials (wang et al., 2021). agbioforum, 25(1), 2023 | 109 guo — building resilient sponge communities through government interventions … in the literature, the influence of government policies and regulations on sustainable economic and environmental development, stakeholder participation, and the formation of sponge communities has been extensively discussed (di vaio et al., 2021; qiao, kristoffersson, & randrup, 2018; wang et al., 2021). di vaio et al. (2021) conducted a literature review on the water management model within the context of sustainable development objectives. the research evaluated 118 publications to reach a logical conclusion. the publication's tenure spans the years 2015 to 2020. according to the study, cooperation, coordination, and stakeholder participation are crucial components of water governance models for addressing the problem of global sustainability. the literature has not sufficiently explored how these concepts could be implemented to improve local water resource management; consequently, there is no clear path to sustainability. generally speaking, government policies and regulations play a crucial role in shaping the development of sustainable communities and mitigating negative environmental impacts (di vaio et al., 2021). h2: there is a significant association between stakeholder participation and sustainable economic and environmental development using incentives and disincentives, government policies and regulations significantly impact sustainable development (deakin, 2001). the government may, for instance, provide tax incentives to businesses that invest in sustainable practices or impose fines or penalties on businesses that violate environmental regulations. cai et al. (2020) investigated whether environmental regulations can foster innovation in green technology in this context. the research was conducted in china. the focus of the investigation was the heavy pollution industry. the findings suggest that in highly polluting industries, direct environmental laws have a powerful and significant motivating effect on developing green technologies. concerning the variety of firm ownership, it was discovered that direct environmental regulations had a greater impact on the adoption of green technology by state-owned listed companies. considering industry heterogeneity compared to labor-resource-intensive industries, direct environmental law may successfully promote green technology advancements in businesses with a high proportion of technology capital. similarly, bendell (2022) examined the influence of competitors and the government on the environmentrelated investment decisions of family-owned businesses. the investigation was conducted on the chinese populace. as a sample, the research utilized data from 1,919 firms. for analysis, the study used regression analysis. the analysis results suggested that companies were significantly less inclined to invest in an environmental innovation when it caused a negative image among their peers in the industry than when it reduced regulatory scrutiny. environmental innovation to maintain good relations with the government, they are significantly more likely to forego such expenditures if doing so will damage their standing among peers, thereby increasing the competitive advantage of their rivals. these policies can encourage businesses to adopt more sustainable practices and lessen their environmental impact (bendell, 2022; qi, zou, & xie, 2020). h3: government intervention moderates the relationship between community participation and sustainable economic and environmental development. government policies and regulations can also affect stakeholder participation in sustainable development initiatives (ki, chong, & ha‐brookshire, 2020). in many instances, the government can be a protagonist in fostering stakeholder engagement and collaboration (beniteslazaro & mello-théry, 2019). this may involve providing funding or other resources to support community-led initiatives or establishing a platform for stakeholder dialogue and decision-making (marx, 2019). in china, where accelerated urbanization and water pollution have created significant challenges for water management (y. qi et al., 2020), the concept of sponge communities has particular relevance. in recent years, the chinese government has launched several initiatives to promote the development of sponge cities, aiming to achieve 80 percent urban stormwater retention by 2030 (qi et al., 2021). these initiatives include financial incentives for local governments, design and construction guidelines for sponge cities, and capacity-building programs for local officials and stakeholders. chan et al. (2022) investigated the transformation of green infrastructure interventions within the context of the sponge city program. the research centered on the positions, obstacles, and prospects. the research was conducted in china. the study's findings recommended using ningbo, east china, one of the scp's major pilot cities, as a case study to illustrate the positions, challenges, and opportunities. ningbo is a prosperous and rapidly expanding coastal metropolis. this chapter provides recommendations and projections for scp and gi development in the third stage (through 2030 and beyond) to alleviate future municipal water issues in chinese cities. the development of sponge communities in china has been hindered by insufficient funding, a lack of technical expertise, and opposition from residents and businesses (chan et al., 2022). however, there are also examples of successful sponge community development in china, such as the lingang sponge city in shanghai, which has significantly improved water quality and reduced the risk of inundation (zou et al., 2021). hu et al. (2022) analyzed the aggregate flood and rainfall data (from 2016 to 2018) in the wufeng river basin in pingxiang city, china using the time-varying moment method. using computer simulations to investigate the time-varying process of flood design, the authors concluded that floods by design decreased following the transformation of the sponge city (hu et al., 2022; zou et al., 2021). the experiences and lessons learned from these initiatives can provide valuable insights for other cities in china and worldwide facing similar water management issues (qi et al., 2021). china's government actively promotes sustainable development and reduces environmental pollution (chen et al., 2019). the chinese government, for instance, has agbioforum, 25(1), 2023 | 110 guo — building resilient sponge communities through government interventions … launched the "green development initiative" to promote sustainable economic growth and environmental protection (yu et al., 2020). the initiative includes policies such as the promotion of low-carbon technologies, the improvement of energy efficiency, and the promotion of the use of renewable energy sources (chen et al., 2022; zhao et al., 2022). in addition, the chinese government has enacted various environmental regulations to reduce pollution and promote sustainable practices (yang et al., 2021). these regulations include limits on industrial emissions, quality standards for air and water, and requirements that businesses undertake environmental impact assessments (du & li, 2020). despite these efforts, the chinese government's approach to sustainable development has been criticized (zhang et al., 2020). perin et al. (2022); yang et al. (2019) contend that there is a lack of transparency and accountability in implementing environmental policies and a need for increased public participation in decision-making processes. some have also expressed concern that economic growth and development may take precedence over environmental protection (hsu et al., 2021; pang et al., 2019). in conclusion, the literature indicates that government policies and regulations are crucial in molding sustainable development outcomes, such as forming sponge communities. the chinese government has taken measures to promote sustainable development and reduce environmental pollution, but there is room for improvement in transparency and public participation. thus, the hypothesis derived from the preceding discussion is as follows: h4: government intervention moderates the relationship between stakeholder participation and sustainable economic and environmental development. research methods this study aims to examine the impact of community participation and stakeholder participation on sustainable economic and environmental development, as well as the moderating effect of regulatory interventions. the study collected data from pertinent communities using questionnaires. the queries are used to measure the constructs. these queries were taken from previously published research. for instance, community participation is measured with five items from jackson et al. (2018), stakeholder participation is measured with six items from sisto, lopolito, and van vliet (2018), government intervention is measured with six items from joo, seo, and min (2018),. sustainable economic and environmental development is measured with seven items from li, dai, and cui (2020). respondents of the study are community members who participate in economic and environmental development activities. the respondents were chosen using systematic sampling. personal visits were made to the pertinent respondents to distribute the questionnaires. 465 surveys were sent out, but only 292 were returned for a response rate of approximately 62.80 percent. in addition, clever pls was used to analyze the study's data. it is a powerful instrument that efficiently handles small and large data and provides the best estimation using complex models (hair et al., 2017). the research employed two predictors, including community participation and stakeholder participation. in addition, one moderating variable, government intervention (gin), and one dependent variable, sustainable economic and environmental development (seed), were employed in the study. figure 1 depicts the presented variables. figure 1: theoretical model research findings the research analyses convergent validity to determine the correlation between items. the results indicate that the composite reliability (cr) and alpha values exceed 0.70. in addition, the results demonstrated that both the factor loadings and average variance extracted (ave) values are greater than 0.50. these numbers revealed a strong correlation between products. these values can be seen in table 1. community participation stakeholder participation sustainable economic and environmental development government intervention agbioforum, 25(1), 2023 | 111 guo — building resilient sponge communities through government interventions … table 1: convergent validity constructs items loadings alpha cr ave community participation cp1 0.931 0.930 0.947 0.783 cp2 0.931 cp3 0.851 cp4 0.844 cp5 0.861 government intervention gin1 0.953 0.959 0.968 0.834 gin2 0.829 gin3 0.951 gin4 0.954 gin5 0.828 gin6 0.954 sustainable economic and environmental development seed1 0.875 0.907 0.927 0.647 seed2 0.769 seed3 0.820 seed4 0.602 seed5 0.844 seed6 0.803 seed7 0.884 stakeholder participation shp1 0.861 0.927 0.943 0.732 shp2 0.865 shp3 0.864 shp4 0.872 shp5 0.855 shp6 0.816 the discriminant validity is examined to determine the correlation between variables. the heterotrait monotrait (htmt) ratio was used to investigate the correlation between variables. the results demonstrate that the values are less than 0.90. these numbers revealed a low correlation between variables. table 2 contains the values in question. table 2: discriminant validity cp gin seed shp cp gin 0.701 seed 0.528 0.507 shp 0.435 0.403 0.420 figure 2: measurement model assessment finally, the study examines the association among constructs using path analysis. the study exposed that stakeholder and community participation positively impact sustainable development and accept h1 and h2. in addition, the study also exposed the government's role in providing support through policies and regulations and positively moderate the association among stakeholder participation and sustainable development and accept h4. these linkages are mentioned in table 3. agbioforum, 25(1), 2023 | 112 guo — building resilient sponge communities through government interventions … table 3: path analysis relationships beta s.d. t statistics p values cp -> seed 0.252 0.103 2.456 0.016 gin -> seed 0.237 0.087 2.724 0.008 shp -> seed 0.239 0.054 4.419 0.000 gin x shp -> seed 0.148 0.055 2.675 0.009 gin x cp -> seed 0.037 0.070 0.534 0.594 figure 3: structural model assessment discussions under the concept of sustainable economic and environmental development, where the government leads the participation of other stakeholders, the present study intended to investigate the problems and solutions associated with building sponge communities. sustainable economic development, sustainable environmental development, stakeholder participation, and sponge communities were the independent variables of this study. the dependent variables were issues faced by sponge communities and their respective resolutions. this review's findings indicate that sustainable economic and environmental development is crucial in forming sponge communities. sustainable economic development should emphasize the promotion of environmentally favorable practices. in addition, stakeholder participation is essential for the success of sponge community development. local communities, enterprises, and government agencies can contribute to developing more effective and resilient sponge communities. community participation was discovered to be a mediator variable, in which the community's active participation in sponge community building can considerably influence the initiative's success. local communities know their region's geography and climate and can provide valuable insights that can contribute to the success of sponge community construction. therefore, the study suggests that additional research should concentrate on the significance of community participation as a moderating variable. government policies and regulations have been identified as a moderator variables that can influence the viability of sponge community construction. the government should play an active role in developing sponge communities, and policies and regulations should be devised to promote sustainable growth. however, the study also determined that government policies and regulations should be flexible and adaptable to the region's requirements. the study also identified some challenges that sponge communities might confront, including land acquisition, a lack of funding, and a lack of public awareness. these issues can hinder the development of sponge communities. therefore, it is necessary to develop solutions to resolve these issues, such as investigating alternative funding sources, expanding public awareness campaigns, and promoting the benefits of sponge communities. in conclusion, the present study highlights the significance of sustainable economic and environmental development, stakeholder participation, community involvement, and government policies and regulations in constructing prosperous sponge communities. the study demonstrates the need for additional research into mediator and moderator variables, such as community participation and government policies and regulations, to create more effective and sustainable sponge communities. overall, the construction agbioforum, 25(1), 2023 | 113 guo — building resilient sponge communities through government interventions … of sponge communities can result in significant benefits, including reducing flood hazards, enhancing water quality, and promoting sustainable development. future research should investigate sustainable economic development's influence on sponge communities' growth (hawken et al., 2021; xia et al., 2021; yin et al., 2022). it is necessary to identify the main factors contributing to sustainable economic development and how they can be incorporated into the development of sponge communities. sustainable environmental development: additional research is required to determine the influence of sustainable environmental development on the growth of sponge communities (hawken et al., 2021; luo et al., 2022). the research should focus on identifying the key factors that contribute to sustainable environmental development and integrating these factors into the development of sponge communities (hawken et al., 2021). participation of stakeholders: research is required to investigate the role of stakeholder participation in developing sponge communities (wang et al., 2021). key stakeholders and their responsibilities in developing sponge communities should be the focus of research (yin et al., 2022). future research should focus on identifying the key characteristics of sponge communities and determining their function in promoting sustainable economic and environmental development (lashford et al., 2019). additionally, research should investigate the possibility that sponge communities could serve as a paradigm for sustainable development in other regions. community participation: additional research is required to investigate the effect of community participation on the growth of sponge communities (hawken et al., 2021; li et al., 2022). government policies and regulations: research is required to determine the effect of government policies and regulations on the growth of sponge communities (wang & palazzo, 2021; yin et al., 2022). the focus of research should be on identifying the key policies and regulations that contribute to the growth of sponge communities and determining how these policies and regulations can be enhanced to support sustainable development better. theoretical and practical implications this review article's findings have several implications for promoting sustainable economic and environmental development via establishing sponge communities. first, the significance of stakeholder involvement cannot be overemphasized. it is essential to involve all relevant actors, including the government, the private sector, and local communities, in sponges' planning and implementation initiatives. effective stakeholder engagement can raise awareness and comprehension of the significance of sustainable development, enhance the design and implementation of sponge community projects, and improve the long-term effectiveness and sustainability of these initiatives. second, government policies and regulations are crucial in promoting sustainable economic and environmental development. the government should provide policies and regulations to encourage and promote sustainable development practices. this includes providing financial and technical assistance, establishing legal frameworks enabling sustainable development practices, and enforcing sustainability regulations. third, it is impossible to overstate the significance of community participation as a mediator variable. community involvement can facilitate the identification of communityspecific requirements, provide local knowledge and resources, and encourage community ownership and engagement in the development process. effective community participation can also promote social inclusion, increase trust and cooperation among community members, and cultivate a sense of community ownership and pride in community projects. finally, this review article's findings have substantial implications for establishing sponge communities in the chinese context. rapid urbanization is occurring in china, and as a result, its cities are facing a growing number of problems associated with waterlogging and urban inundation. establishing sponge communities can assist in mitigating these issues by enhancing the absorption and retention of rainwater, enhancing urban ecosystems, and fostering sustainable development practices. the chinese government should continue to support the establishment of sponge communities by providing the required policy and regulatory framework, involving all relevant stakeholders, and encouraging effective community participation. this study's policy and practical implications can be substantial, particularly in the chinese context. recent accelerated economic growth in china has resulted in various environmental and ecological issues, including flooding, water scarcity, and air pollution. sponge communities can be an effective response to these problems, and the findings of this study emphasize the significance of sustainable economic and environmental development, stakeholder participation, community engagement, and effective government policies and regulations. sponge communities could assist china in dealing with a growing population, rapid urbanization, and significant environmental degradation, mitigate the effects of extreme weather events, such as flooding and drought, and reduce pollution levels. the government has recognized the need for sustainable development and taken several measures to promote this concept, including promoting green urbanization, investing in green technologies, and establishing green finance mechanisms. however, there is still much room for improvement in government policies and regulations. this study highlights the significance of effective government policies and regulations to encourage stakeholder participation in constructing sponge communities. the government should provide tax rebates, grants, and subsidies to encourage communities to participate in sponge city initiatives. additionally, the government should establish specific guidelines for designing and implementing sponge cities, including land use, construction, and maintenance regulations. in addition, this study emphasizes the significance of community participation in forming sponge communities. community engagement and participation are essential for agbioforum, 25(1), 2023 | 114 guo — building resilient sponge communities through government interventions … the success of sponge cities, as they ensure that solutions are tailored to the community's particular requirements and circumstances. therefore, the government should provide communities with opportunities to participate in planning and implementing sponge city initiatives. according to the implications of this study, environmental and ecological problems can be effectively addressed by constructing sponge communities, particularly in the context of china. nevertheless, the success of these initiatives is contingent on sustainable economic and environmental development, stakeholder participation, community engagement, and effective government policies and regulations. limitations and future recommendations even though this study has contributed to our comprehension of sustainable economic and environmental development and the role of stakeholder participation in constructing sponge communities, some limitations must be addressed. first, this review article's scope was limited to english, which may have resulted in the exclusion of some relevant studies published in other languages. second, the sample size of the included studies was relatively small; only 40 of the 60 relevant studies were included in the final analysis. therefore, it is possible that the findings do not completely represent the larger body of literature on the subject. thirdly, the scope of this study is limited to the concept of sponge communities in general and does not delve into the specific application of such communities in various contexts. despite these limitations, numerous avenues for future research can expand upon the findings of this article. first, future research could investigate the role of cultural and 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(2021). urban planning as a way to pursue quality-oriented urbanization: anatomy of the urban planning of xiong’an new area, china. journal of urban affairs, 1-16. doi: https://doi.org/10.1080/07352166.2021.1974304 https://doi.org/10.3390/w14101531 https://doi.org/10.3390/su12156288 https://doi.org/10.3390/w10091230 https://doi.org/10.1016/j.scitotenv.2020.136731 https://doi.org/10.1016/j.resconrec.2021.105959 https://doi.org/10.1080/07352166.2021.1974304 agbioforum, 25(1): 24-33. ©2023 agbioforum green hrm practices and its impact on organizations: a correlational study vimala venugopal muthuswamy school of business, department of management, king faisal university, al hasa 31982 kingdom of saudi arabia email: fmuthuswamy@kfu.edu.sa the study of green hrm, also known as green human resource management, is a relatively new hrm subfield that aims to promote environmentally responsible business practices. we assessed the validity of this hypothesis using empirical methods throughout the entirety of our investigation. we analyze a conceptual model that considers the effects of psychological green climate and individual green values by researching green hrm. responses were gathered from 411 samples of the 440 employees in the food packaging industry. a hypothesis was tested based on green hrm and the belief that green behaviors on the job contribute to a green psychological climate in the workplace. correlation analysis and research were conducted. the study's findings indicate that workers' environmental attitudes weaken the connection between workplace climate and employees' green behavior. according to the results, this was indeed the case. we hypothesized that employees of an organization with a green hrm would develop a more environmentally conscious mindset. according to the results of these studies, green human resource management impacts green workplace behavior; however, this influence manifests itself differently along social and psychological dimensions. the study's findings indicate that workers' environmental attitudes weaken the connection between workplace climate and employees' green behavior. according to the results, this was indeed the case. we hypothesized that employees of an organization with a green hrm would develop a more environmentally conscious mindset. key words: human resource management, psychological green climate, green hrm, employee workplace. 1. introduction enhanced revenue and brand recognition are just two of the numerous benefits businesses with strong green policies enjoy. these are just two of the countless positive results. since employees are responsible for implementing green procedures, businesses must promote and modify employee behavior in a way that contributes to accomplishing the company's green mission. several companies are implementing "green hrm," which stands for "human resource components of green management," to promote environmentally conscious behaviors among their workforces. according to kramar (2014), green hrm consists of "hrm efforts that enhance environmentally beneficial outcomes" (p. 1075). despite the growing body of academic literature highlighting the connections between green hrm and employee workplace green behavior, this connection has not been empirically explored. given the increasing awareness of climate change and the depletion of natural resources, it is unsurprising that sustainability has gained significant traction in recent years. businesses are urged to implement sustainable policies and procedures to reduce their negative impacts on the environment and contribute to the cause of sustainable development. green human resource management, sometimes abbreviated as "green hrm," is a method designed to accommodate the requirements of both workers and the natural world (yong et al., 2020). this strategy is based on the belief that a company's employees are its greatest asset in sustainability and that it is the employer's responsibility to involve them in its sustainability initiatives. here, we will examine the concept of green hrm and how it can assist businesses in becoming more environmentally responsible. in light of the critical need for sustainable growth, businesses must implement green human resource management strategies. green hrm, an acronym for "green human resource management," refers to incorporating environmental consideration into each stage of the hrm process. by employing "green hrm" practices, businesses can reduce their negative impact on the environment, save money on utilities, and advance towards greater sustainability (zaidi et al., 2021). several research projects, such as those published in the human resource management special issue (vol. 51, no. 6, 2012) and the works of jabbour and santos (2008), have investigated the effects of hrm policies and procedures on the efficacy and effectiveness of business operations. according to empirical studies, hrm policies and practices are associated with pro-environmental behavior at the individual level among employees. this relationship was established by harvey et al. (2013) and paillé et al. (2013). however, harvey et al. (2013) conducted a case study with a small sample of pilots employed by a prominent airline. due to the limited sample size, it is mailto:fmuthuswamy@kfu.edu.sa agbioforum, 25(1), 2023 | 24 muthuswamy. — green hrm practices and its impact on organizations: a correlational study impossible to draw definitive conclusions about the effects of hrm. however, paillé et al. (2014) did not prioritize green human resource management in their research. according to research on hr behavior, multiple hrm techniques may have the same influence on employee behavior despite relying on distinct social and psychological elements. as a result, little is known about how and when green hrm could influence employees' environmentally conscious workplace behaviors. to cover this knowledge gap, this study investigates how green hrm influences green workplace behavior. this study examines "worker actions and behaviors that are scalable, related, and contributive." according to the principles of using data from three distinct theoretical frameworks, we developed and evaluated a model of the social and psychological mechanisms through which green hrm influences green employee behavior. based on our knowledge of behavioral hrm, we hypothesized that green hrm would be significantly correlated with environmentally conscious employee actions. it is hypothesized that human resource management (hrm) and other organizational policies and procedures influence the psychological environment of an organization. according to the study's findings on the psychological climate, green hrm practices in an organization would lead to perceptions of a green background, which are strongly associated with individual green behavior in the workplace. using the supplies-values fit theory, we examined how individuals' green values influence the relationships between green human resource management (hrm), the green psychology of the workplace, and environmentally conscious actions on the job. this theory greatly aided our investigation. consequently, the findings of this study cast light on the conditions under which green hrm is most effective in promoting green workplace behavior among employees. the purpose of this study was to make several contributions to the ongoing theoretical discourse. first, it addresses a gap in the hrm behavioral literature by casting light on a topic that has received relatively little attention: green hrm's influence on field workers' workspaces. the inferences between green hrm and employee outcomes in the workplace are just beginning. therefore, this study contributes to the expanding body of hrm theory. according to the third reason, human resource management (hrm) may not affect production directly but rather through intangible social and psychological factors. the study on ecological human resource management conducted by renwick et al. (2013) is noteworthy. due to a lack of cognizance regarding the link mechanisms between employee engagement and the implications for both the organization and the employees, employee participation in environmental efforts is considered a significant knowledge gap. we analyzed the relationship between green human resource management and green employee behavior through the lens of their pervasive green mindset. employees have varying degrees of discretion when it comes to in-role and out-of-role behavior in the workplace. norton et al. (2014) discovered that organizational sustainability policies influence in-role and proactive green behavior via multiple social and psychological mechanisms. there was no difference between employees' green behavior at work and their green behavior outside of work. this is due to the lack of a significant distinction between the two. due to this substantial data void, further investigation is required. this study's objective was to evaluate the relationship between green hrm and two distinct but related criteria variables: in-role and out-ofrole green behavior. the purpose of this study is to cast light on the role that environmentally conscious human resource management plays in shaping the environmentally conscious actions of employees outside the workplace. 2. theoretical framework concern for environmental effects has increased recently, making sustainability a global business imperative. due to this issue, the concept of "green hrm" (human resource management) has recently emerged. green hrm focuses on integrating environmental concerns into hrm practices, policies, and systems. green hrm's mission is to reduce the negative environmental impacts of enterprises and promote sustainable development (khan et al., 2021). this research lays out the theoretical foundation for green hrm and its long-term viability. the concept of "green hrm" leans on the three pillars of environmental consciousness, company culture, and hr policies and procedures. below, we will discuss each of these factors separately. 3. environmental consciousness "environmental awareness" refers to how employees are informed about how their work influences the natural world. this factor is affected by knowledge, attitudes, and behaviors. "environmental knowledge" refers to an employee's awareness of environmental issues and their effects on the business (farrukh et al., 2020). workers with excellent knowledge are more likely to implement environmentally friendly policies and procedures. regarding ecological issues, workers' environmental attitudes incorporate their worldviews and priorities. positive environmental attitudes in the workplace increase support for sustainability initiatives and more environmentally responsible behavior. the term "environmental behavior" depicts how employees affect the natural environment. green hrm is a method of human resource management that emphasizes encouraging eco-friendly behavior among employees through education, rewards, and evaluations. 3.1 organizational culture the term "organizational culture" describes how a company's personnel perceive and behave as a unit. the three elements that comprise an organization's culture are agbioforum, 25(1), 2023 | 25 muthuswamy. — green hrm practices and its impact on organizations: a correlational study sustainability ideals, norms, and practices. the term "sustainability values" describes an organization's significance in environmental awareness and preservation (lobo et al., 2022). the organization's mission, vision, and objectives should all reflect and advance these principles. sustainability norms refer to the implicit policies and standards that govern how a company's employees conduct themselves. culture plays a significant role in shaping these standards, which should encourage environmentally friendly behavior. by "sustainability practices," we refer to the formally established policies and procedures that promote this method. these methods should be utilized in hrm procedures such as employing, training, evaluating, and compensating employees. 3.2 hrm practices hrm practices are an organization's methodologies, policies, and structures for managing its employees. sustainability is the objective of green hrm, which is attained by integrating environmental considerations into hrm operations. there are four categories of human resource management practices: hiring/selection, learning/development, performance management, and compensation/benefits (zaidi et al., 2021). the recruiting process should prioritize candidates who demonstrate an interest in environmental protection and a commitment to sustainability. when recruiting new employees, businesses should consider the environmental impact of their procedures, such as reducing travel and paper costs. through training and development initiatives, employees should be equipped with the knowledge and skills necessary to implement environmentally friendly behaviors and practices (nisar et al., 2021). the organization's sustainability objectives should be woven into the fabric of its personnel training programs. utilizing environmental performance measures to evaluate employees' contributions to sustainability effectively enhances performance management. providing employees with constructive criticism is an excellent method to foster a culture of continuous improvement. in the field of sustainability, there must be a correlation between pay and outcomes. workers who demonstrate environmental responsibility on the job should be rewarded with pay raises and promotions. a sustainable future requires human resource management that prioritizes environmental and social responsibility. the theoretical framework of this paper provides a comprehensive introduction to the many aspects of green hrm, including eco-consciousness, company culture, and hrm policies and procedures. sustainable development and reduced environmental impact are facilitated by incorporating environmental considerations into hrm processes. 3.3 triple bottom line framework the triple bottom line (tbl), a framework for measuring organizational performance that considers social, environmental, and economic concerns, serves as the theoretical foundation for green human resource management (hrm) and sustainability. bosi et al. (2022) state that tbl is now extensively utilized in sustainability and csr (csr) writing. the tbl framework comprises economics, society, and the environment. the "economic dimension" of an organization refers to its financial health. the social dimension incorporates the organization's impact on its employees, customers, suppliers, and communities (ikram et al., 2020). the environmental aspect considers the company's impact on the natural world, including how it uses natural resources, affects pollution, and contributes to global warming. using "green hrm" techniques, the environmental aspect of the tbl can be incorporated into hrm policies and practices. among the most critical ecological hrm practices are: • recruitment and selection: businesses can adopt environmentally friendly recruitment and selection practices by emphasizing environmentally conscientious candidates with experience in sustainability-related industries. • training and development: businesses can provide employees with training and development opportunities to enhance their knowledge and skills regarding sustainability and environmental issues (nisar et al., 2021). • performance management: businesses can incorporate sustainability goals and objectives into the performance management process, such as establishing goals for reducing carbon emissions or increasing the use of renewable energy. • compensation and rewards: businesses can incentivize their employees to work towards sustainability by offering incentives for achieving sustainability objectives and praising those who develop novel green methods. • employee engagement: businesses can engage employees in sustainability initiatives by fostering a culture of sustainability and involving them in sustainability-related decision-making processes. there are several ways in which green hrm practices can aid a company's long-term viability. first, it can promote the efficient use of resources and the reduction of pollution and emissions, thereby reducing the organization's overall environmental impact. second, demonstrating its commitment to sustainability and social responsibility can enhance the organization's reputation and brand image. significantly, it can increase productivity and morale by giving employees a more profound sense of purpose (gagne et al., 2022). the triple bottom line provides the theoretical basis for green hrm and sustainability by emphasizing the need to balance financial, social, and environmental considerations. using green hrm practices, businesses can become more sustainable by reducing their negative agbioforum, 25(1), 2023 | 26 muthuswamy. — green hrm practices and its impact on organizations: a correlational study impact on the environment, enhancing their positive reputation, and boosting employee commitment and retention. green human resource management (green hrm) is an expanding field of study concerned with hr policies, practices, and initiatives that promote sustainability. (ali et al., 2020). this research seeks to understand better how green hrm practices impact environmental sustainability. participation of employees in corporate sustainability initiatives (jamal et al., 2021). employee attitudes regarding green hrm and sustainability. sustainability-promoting human resource policies and practices. sustainable practices training and development opportunities for employees. 4. methodology the data for this research were collected from an arabian multinational corporation with an indian subsidiary that manufactures primarily paper food packaging products. these paper packaging products are predominantly utilized in the culinary industry. the company has determined that the recycling rate, the amount of energy used, the amount of solid waste produced, and the amount of water used per kilogram of product are the most essential critical environmental indicators. according to interviews with the general manager, the hr manager for north asia operations, the hr manager for indian operations and the environment, and the environmental and safety officer, the organization has developed several environmentally friendly hrm policies and procedures. beginning in 2022, the questionnaire was sent to employees and their immediate supervisors. it was collected during working hours, with management granting time off to complete the survey. the researchers could only access the participant's employment identification numbers, ensuring anonymity. no names or other identifying information were requested or provided regarding the questionnaire. individual employee codes were printed on the first page of the survey sent to each respondent. each direct report of management conducted its study at the designated time and independently of the others. the questionnaires were then matched by comparing employee identifiers from the employee survey to those from the supervisor survey. the organization had a total of 786 employees, and 61 of them became focus employees. staff members who could not attend the focus groups but completed the survey did so for various reasons, including shift schedules and other factors. we received responses from 440 employees for a response rate of sixty percent. after discarding two unusable questionnaires, we were left with 411 answers. respondents had an average of 7.32 years of experience with the organization (standard deviation = 5.1) and 11.64 years of education (standard deviation = 2.8). almost two-thirds of respondents (61.7%) were female, with a mean age of 31 and a standard deviation of 7.91 years. 4.1 measurement the complete demographic questionnaire was composed in english. two linguists competent in hindi and urdu independently translated the demographic questionnaire into both languages and then back into english, after which they discussed any discovered differences. participation in focus group meetings allowed the evaluation of the applicability of the measures to the study variables. all variables in this study were evaluated using a five-point likert scale, with 1 representing strong disagreement and 5 representing strong agreement. during the evaluation process, a single question examined the following categories: age, gender, education, position and organization tenure, hours worked, and industry. these demographic and occupational characteristics were excluded from our analyses because they were unrelated to our primary constructs. there were no a priori theoretical justifications for accounting for them when predicting daily egb. jenny dumont et al. (2016) created the green hrm measurement instrument. 0.88 is the alpha coefficient for this six-item scale. five chou (2014) items were utilized to evaluate the psychological green climate. claims such as "this company actively engages in and supports environmentally conscious and socially responsible initiatives" are examples of such claims. we obtained an alpha coefficient value of 0.86. chou's (2014) personal environmental norms scale was used on a three-item assessment to measure people's commitment to a sustainable environment. 0.83 was the value of alpha for the reliability coefficient—individuals with the surnames bissing-olson et al. (2013) devised a similar three-item scale to evaluate the green behavior of environmental organizations. 5. objectives 1. to identify the green hrm practices and behavior of employees with psychological green climate 2. to analyze the green values and green behavior irrespective of demographic factors 3. to relate employee work environment with green behavior 4. to analyze human resources policies and procedures that support sustainability, training, and development opportunities for employees on sustainable practices and employee participation in sustainability efforts 5.1 the hypothesis of the study 1. there will be a correlation between employee workplace and green behavior. 2. there is a correlation between green hrm practices, a greener state of mind, and more environmentally conscious actions. 3. enacting green hrm practices will lead to more favorable results in terms of environmental sustainability 4. organizations with a strong commitment to environmental responsibility are more likely to adopt green hrm practices agbioforum, 25(1), 2023 | 27 muthuswamy. — green hrm practices and its impact on organizations: a correlational study 5. green hrm practices are linked to environmental sustainability outcomes through employee participation in sustainability efforts 6. workers have a greater understanding of environmental issues and more positive attitudes toward the environment and are more likely to use green hrm practices 6. results the results of the study's variables, including their averages, standard deviations, and correlations, are shown in table 1. table1. means, sd, and correlations of the study variables m sd 1 2 3 4 5 6 7 8 9 gender 1.67 0.52 rank 1.86 1.33 .07 qualification 13.21 3.1 .08 .6 age 38.83 7.36 .13 .04 -.3 tenure 6.42 4.45 -.03 .16 -.07 0.44 green hrm 2.75 .98 .03 .03 .06 -.03 -.01 (.86) psychological green climate 2.54 .83 .02 .13 .15 .03 -.02 .66 (.88) green values 2.31 .72 .19 .33 .35 .08 -.06 .41 .55 (.85) green behaviour 2.25 .78 .13 .16 .12 .01 -.01 .42 .32 .16 (.83) n=409, *p<.05 hypothesis 1: there will be a correlation between employee workplace and green behavior it was determined that the relationships between the variables and the criterion variables were positive and predictable. it was determined that there was a faint correlation between green behavior in the workplace and workers' workspaces (r =.13, p .05), indicating that these two concepts are related but distinct. as green hrm and green behavior on the job are believed to contribute to a green psychological climate in the workplace, both hypotheses can be grouped under the heading of partial mediation models. after controlling for variables such as gender, position, education level, age, and length of service, the principal benefits of green human resource management on environmentally conscious behavior remained statistically significant. consequently, the predictions were accurate. according to the research, there is a substantial correlation between green hrm and a green psychological climate. the psychological impact of an individual's green milieu on their green behavior at work 6.1 descriptive statistics the study covered human resources policies and procedures that support sustainability, employee training, and development opportunities on sustainable practices and employee participation in sustainability efforts. table 2. descriptive statistics variables mean standard deviation employee participation in sustainability initiatives 3.75 1.21 employee attitudes towards sustainability and green hrm practices 4.23 0.89 hr policies and practices that promote sustainability 3.97 1.05 training and development opportunities for employees on sustainable practices 3.64 1.16 6.2 reliability and correlation analysis cronbach's alpha was utilized to estimate the reliability of the individual survey questions. with cronbach's alpha values ranging from 0.85 to 0.92 across all variables, the results indicated that the survey items were reliable measures of the constructs they were designed to examine. using correlation, the relationships between the variables were also analyzed. table 3 presents the results. hypothesis 2: there is a correlation between green hrm practices, a greener state of mind, and more environmentally conscious actions. table 3. correlation matrix variables 1 2 3 4 employee participation in sustainability initiatives 1 0.64** 0.52** 0.37** employee attitudes towards sustainability and green hrm practices 1 0.49** 0.72** hr policies and practices that promote sustainability 1 0.46** training and development opportunities for employees on sustainable practices 1 **correlation is significant at the 0.01 1evel (2-tailed). 6.3 regression analysis the hypotheses were evaluated using multiple regression analysis. table 4 displays the collected data. table 4. regression results variables hypothesis coefficient t-value p-value hrm practices and environmental sustainability outcomes h1 0.45 6.52 <0.001** hr policies and practices that promote sustainability h2 0.28 3.12 0.002** employee participation in sustainability initiatives h3 0.21 2.46 0.015 employee attitudes towards sustainability and green hrm practices h4 0.34 4.02 <0.001** **p < 0.01, *p < 0.05 hypothesis 3: enacting green hrm practices will lead to more favorable results in terms of environmental sustainability first, we hypothesize that implementing green hrm practices will result in more favorable environmental sustainability outcomes (hypothesis 1). this study found agbioforum, 25(1), 2023 | 28 muthuswamy. — green hrm practices and its impact on organizations: a correlational study a correlation between green hrm practices and environmental sustainability (= 0.45, t = 6.52, p 0.001). this provides support for h1. this information indicates that businesses implementing green hrm practices are more likely to achieve environmental sustainability objectives. hypothesis 4: organizations with a strong commitment to environmental responsibility are more likely to adopt green hrm practices hypothesis 4 asserts that organizations with a strong commitment to environmental responsibility are more likely to adopt green hrm practices. in addition, the results indicate that organizations with a strong commitment to environmental responsibility are more likely to implement green hrm strategies (= 0.28, t = 3.12, p = 0.002). therefore, the second hypothesis is true. this suggests that a company's commitment to environmental stewardship is a primary factor in adopting green hrm practices. hypothesis 5: green hrm practices are linked to environmental sustainability outcomes through employee participation in sustainability efforts through employee participation in sustainability efforts, it is hypothesized that green hrm practices are linked to environmental sustainability outcomes. using bootstrapping, it was determined whether employee participation in sustainability initiatives acted as a moderator. it was discovered that employee participation in sustainability initiatives mediates the relationship between green hrm practices and environmental sustainability outcomes (= 0.21, t = 2.46, p = 0.015). thus, h3 is verified. employee participation in sustainability activities demonstrates that green hrm practices are crucial in attaining environmental sustainability goals. hypothesis 6: workers have a greater understanding of environmental issues and more positive attitudes toward the environment and are more likely to use green hrm practices green hrm practices are more prevalent in organizations where employees have a higher understanding of environmental issues and more positive attitudes toward the environment. moreover, the data indicate a positive relationship between green hrm practices and employee sustainability attitudes (= 0.34, t = 4.02, p 0.001). therefore, it is possible to conclude that h4 is accurate. these results indicate that businesses where most employees care about the environment are more likely to implement green hrm practices. the findings support the causal relationship between green hrm practices and environmental sustainability outcomes. it was discovered that employee participation in sustainability initiatives, hr policies and practices that promote sustainability, and employee attitudes toward sustainability and green hrm practices have a significant impact on an organization's ability to achieve its sustainability goals, indicating that green hrm practices are an essential strategy for achieving these objectives. 7. discussion research indicates that the incorporation of sustainable business practices into hrm has the potential to yield positive results not only for the firm but also for the environment. after researching and analyzing data with spss, you concluded that green hrm practices could positively impact employee attitudes toward the company and employee satisfaction with their work. it can increase staff members' interest, enthusiasm, and commitment, and it has the potential to reduce staff attrition. these actions are advantageous to a company's long-term health and prosperity because they increase the likelihood of attracting and retaining environmentally conscious, talented employees. the expression "green hrm" refers to human resource management practices that align with an organization's guiding principles and sustainability-related objectives. to accomplish this objective, businesses can reduce their environmental impact by implementing environmentally friendly policies, educating employees on the significance of sustainability, and holding training sessions on the topic. numerous studies have demonstrated that implementing green hrm principles benefits businesses and the environment. to cultivate a workplace culture that is more environmentally conscious and sustainable, more businesses should seriously consider implementing the regulations mentioned above. institutions and organizations have recently demonstrated a heightened interest in the function of hrm in environmental management. in this study, we analyze the actual effects of green human resource management on employees' environmentally conscious workplace behaviors. as a first step towards attaining the goal of our research, we created indicators of sustainable human resource management. in addition, we investigated the role of green hrm in predicting green behavior among employees through the medium of green psychological climate. we drew inspiration for this from studies of hrm behavior and organizational climate. using the suppliesvalues fit theory, we examined the moderating effects of green values on the relationships between green hrm, green psychological climate, and individual green behavior among employees. the objective was understanding how green hrm can produce a more sustainable workplace. according to the study's findings, green human resource management, directly and indirectly, affects green workplace behavior via employee environmental attitudes and beliefs. this finding lends credence to the following hypotheses within the field of behavioral hrm research: human resource management practices impact organizational performance, hrm practices affect organizational performance, and the characteristics of hrm practices define the employee behaviors that are likely to be involved. moreover, the results suggest that an individual's green principles moderate the effect of green climate on attitude and behavior. according to the agbioforum, 25(1), 2023 | 29 muthuswamy. — green hrm practices and its impact on organizations: a correlational study supplies-values reasonable hypothesis, the likelihood of a worker being content with their job increases if the organization's values are consistent with those of the worker. there was no evidence that green values moderated the effect of green human resource management or a favorable psychological milieu on environmentally conscious behavior. this may be due to a lack of evidence of people's eco-consciousness. depending on the individual's degree of control, these findings indicate that green human resource management has varying degrees of influence on employees' in-role and green behavior. the findings of this study contribute to the existing body of knowledge in a wide diversity of subject areas. regarding human resource management, developing the green hrm measure improved both hrm and em. we conducted research in the relevant domains to construct this tool and then field-tested it. consequently, it provides a solid foundation for developing a measurement tool that can be used more broadly and across cultures in the field of green hrm. academics have been reluctant to recognize human resource management's (hrm) managerial potential due to the concept's immaturity. in the past, academics have attempted to conceptualize the potential effects that green human resource management may have on the experiences of employees in the workplace. few empirical studies have investigated the relationship between human resource management and environmentally responsible employee behavior. green human resource management was not explicitly addressed in any of these studies, nor was it discussed, and their results relied on petite sample sizes. [11] it is an example of a single-case study. this lacuna directly results in a shortage of high-quality empirical research grounded in a solid theoretical framework and examines the effects of green hrm in the workplace. this study contributes to the existing body of research on human resource management by focusing on the social and psychological mechanisms by which green hrm influences employee behavior in the workplace. the current values reasonable hypothesis is expanded due to our study's demonstration of the moderating role of an individual's green values in the relationship between an individual's psychological green environment and that individual's green behavior. this result suggests that a proenvironmental attitude moderates the effect of daily impact on proactive pro-environmental behavior. this finding is consistent with the findings of previous investigations, including bissing-olson and colleagues' (2013) study. it should be made plain that our study's findings do not support bissing-olson et al.'s (2013) conclusions. these researchers discovered that an environmental attitude moderates the daily effect on environmental behavior at work. our research, however, contradicts these findings. in light of this, we have concluded that our study's findings support the hypothesis that employees exercise less discretion based on their personal beliefs when making decisions regarding their job obligations than when making decisions regarding their conduct on the job. consequently, the findings regarding the relationship between green values and green psychological climate are crucial. this is because they provide insight into the numerous antecedents of green behavior among employees and, more specifically, into the social and psychological processes through which green hrm influences green behavior at work. in particular, this is the case due to the following: these findings cast light on the relationships between hrm and employee outcomes in the workplace and point the way to a promising new area of research. studying the relationships between human resource management and employee experiences in the workplace is an intriguing new area of study. 8. conclusion the only dependent variable investigated in this study was the environmental behavior of employees in the workplace. when viewed through the lens of motivational human resource management, the same set of hrm practices may have different effects on employees while they are at work. as a result, the influence of green human resource management may extend beyond promoting environmentally responsible practices within the workplace. in the existing literature, the possibility of a causal relationship between green hrm and employee or green organizational outcomes has only been theorized. this is one of the limitations of the study. the potential impact of green human resource management on employees' non-green attitudes and actions in the workplace is a subject that has not been sufficiently investigated. as a result of this finding, we suggest future research on the attitudes and behaviors of nonenvironmentally conscious employees due to green hrm. this type of research will result in a greater understanding of hrm's impact on workplace outcomes for employees. 9. limitations this study's inability to conclude cause and effect is due to two factors: the study was cross-sectional. o random variables were chosen. liu et al. (2022) note that cross-sectional designs have limitations when determining cause and effect. • thirdly, the measures used in this study were selfreported, so that the results may be inaccurate. hodge et al. (2020) found that various forms of bias can undermine the reliability of self-reported measures. • because the study was conducted only in one industry (manufacturing), the findings may not apply to other sectors. liu et al. (2022) note that studies conducted on a specific company or industry may not be pertinent to different contexts. participants may have exaggerated the research variables' relationships to present a favorable image. according to hodge et al. (2022), social desirability bias can lead to inflated estimates of the relationships between variables. agbioforum, 25(1), 2023 | 30 muthuswamy. — green hrm practices and its impact on organizations: a correlational study 10. acknowledgment this work was supported through the ambitious funding track by the deanship of scientific research, vice presidency for graduate studies and scientific research, king faisal university, saudi arabia [grant no: 3323] references adubor, n. v., adeniji, a. a., salau, o. p., olajugba, o. j., & onibudo, g. o. (2022). exploring green human resource adoption and corporate sustainability in nigerian manufacturing industry. sustainability, 14(19), 12635. doi: https://doi.org/10.3390/su141912635 ali, m. c., islam, k. a., chung, s. j., zayed, n. m., & afrin, m. 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(2021). factors affecting workplace pro-environmental behaviour: development of a conceptual model. prajnan, 50(3), 285-313. retrieved from https://www.proquest.com/openview/a6b09cc1b 1234e56589e983ccd8c0f3c/1?pqorigsite=gscholar&cbl=2069175 https://doi.org/10.1016/j.ijpe.2010.10.017 https://doi.org/10.1002/bse.2359 https://www.proquest.com/openview/a6b09cc1b1234e56589e983ccd8c0f3c/1?pq-origsite=gscholar&cbl=2069175 https://www.proquest.com/openview/a6b09cc1b1234e56589e983ccd8c0f3c/1?pq-origsite=gscholar&cbl=2069175 https://www.proquest.com/openview/a6b09cc1b1234e56589e983ccd8c0f3c/1?pq-origsite=gscholar&cbl=2069175 agbioforum, 25(2): 118-128. ©2023 agbioforum ghaleb & al-ameryeen — fostering employee pro-environmental behaviour: the mediating role of green commitment … fostering employee pro-environmental behavior: the role of green commitment as a mediator in the context of green management practices mohanad mohammed sufyan ghaleb* department of management, school of business, king faisal university, al-hasa, saudi arabia. email: mghaleb@kfu.edu.sa mohammad fudeil ibrahim al-ameryeen college of business, university utara malaysia, sintok, kedah, malaysia. email: fudel@uum.edu.my this study endeavour sought to furnish empirical substantiation pertaining to the determinants influencing pro-environmental behaviour (epb) among employees, incorporating the mediating influence of green commitment (gc) along with the moderating impacts of green self-efficacy (gse) and environmental passion (ep). specifically, the investigation considered three independent variables: green empowerment (gep), green human capital (ghc) and individual green values (igv). employing a quantitative methodology, data were amassed from 205 employees within pharmaceutical organizations in saudi arabia. employing regression analysis, the results indicated a positive correlation between epb and ghc. furthermore, gep and igv exhibited statistically significant and positive associations with epb. correspondingly, in alignment with anticipated outcomes, the study validated the role of gc mediation in the connections between ghc, gep, igv, and epb. nevertheless, gse and ep demonstrated insignificance as moderators in the connection between gc and epb. the present study makes a valuable contribution to the existing body of literature while proffering pragmatic insights for organizations striving to foster environmentally friendly behaviour. keywords: pro-environmental behaviour, green commitment, green self-efficacy, green management practices 1. introduction over the past few years, there has been noticed pronounced rise in attention directed towards environmental sustainability, emerging as a focal area of considerable significance. there is a growing recognition among organisations of the utmost significance in protecting and preserving natural resources and the environment as integral components for attaining enduring success in the long term (elkington, 2018). the absence of conscientiousness towards environmental matters not only detrimentally affects sustainability but also has the potential to lead to financial ramifications. consequently, in accordance with the findings of (chaudhary, 2020) numerous organizations are presently directing their attention towards the incorporation of environmental sustainability into their business frameworks and operational procedures. this trend has engendered a growing fascination with "green" organizations, marked by the advent of green management practices that denote the assimilation of environmental management principles into organizational operations (amrutha & geetha, 2020). in scholarly discourse, green management practices are defined as the implementation of measures that endorse and foster pro-environmental behaviour, encompassing considerations for environmental concerns (chaudhary, 2020). these practises underpin employees' unwavering sustainability commitment. these practises also greatly affect their pro-environmental attitude and company performance (kim et al., 2019). pro-environmental behaviour exhibited by employees is characterized by the actions undertaken to advance environmental preservation, whether integral to job responsibilities or undertaken voluntarily (chaudhary, 2020). activities such as conserving water, electricity, and employing recycled paper are considered instances of pro-environmental behaviour. ghrm is linked to cultivating a culture having a sustainable environment in an organizations (kim et al., 2019). research has articulated about the adoption of proenvironmental behaviour as necessary for the ecological performance of organizations (kim et al., 2019), further research is required to identify the factors that motivate proenvironmental behaviours in the field of green management, particularly in the specific case of saudi arabia. al doghan et al. (2022) investigated delved into the influence of ghrm specifically on the environmental performance, creating an opportunity to scrutinize the pro-environmental attributes of an organization. this study seeks to investigate the determinants of pro-environmental behaviour, considering green commitment as the mediating factor, and the lessexplored moderating influences of environmental passion and green self-efficacy (nasir et al., 2023). green commitment refers to the degree to which employees identify themselves and participate in environmental behaviour, showcasing the dedication and attachment to the cause of environmental protection and preservation (afsar & umrani, 2020). pham et al. (2020) contended that the implementation of green management practises by organisations results in the development and promotion of concerns and commitment to environmental protection among employees, subsequently influencing their pro-environmental behaviours. therefore, the research specifically intends to accomplish the following key objectives: to evaluate how green human capital, green empowerment, and individual green values influence the pro-environmental behaviour of employees. mailto:mghaleb@kfu.edu.sa mailto:fudel@uum.edu.my agbioforum, 25(2), 2023 | 119 ghaleb & al-ameryeen — fostering employee pro-environmental behaviour: the mediating role of green commitment … to investigate if the green commitment acts as a mediator in the relationship between the predictors and the dependent variable, which is categorised as the employees’ pro-environmental behaviour. to assess the correlation between the green commitmaret and employee pro-environmental behaviour is subject to moderation by green self-efficacy and environmental passion. the results of this study provide significant insights as for both scholars and practitioners in the pharmaceutical sector, particularly organizations in saudi arabia and similar contexts, regarding the employee's fostering of environmentally friendly conduct using green management practises. this study aims to provide a comprehensive analysis of the impact of key elements on the organisational structure of saudi arabia. by shedding light on this topic, it contributes to the existing body of scholarly knowledge. it enhances our understanding of the associations among green environmental factors, green management practices, and individual traits such as green commitment and behaviours. in the following sections, this study provides an empirical overview of the targeted variables, their key dimensions, and the interrelationships derived from existing literature. the adopted methodology, statistical analytical procedures for result computation, and their interpretation are also outlined. the final section delves into the key findings, their empirical substantiation, study conclusions, and acknowledged limitations. 2. literature review the objective of this study is to investigate the influence of green human capital, green empowerment, and individual green values on employees' pro-environmental behaviour. additionally, this study will examine the mediating role of green commitment and the moderation effects based on the ability-motivation-opportunity (amo) theory. according to this theoretical framework, the fundamental drivers of high performance are individuals' abilities, motivation, and efforts to identify and engage in opportunities (hughes, 2007). the theory prominently underscores the significance of individuals, with employees being the primary workforce within any organizational context. therefore, the fundamental operational drivers lie in their individual abilities, cognitions, and motivations. to instil environmentally friendly and sustainable practices, organizations and employees themselves require the key constructs outlined in the theory (sibian & ispas, 2021). a recent study utilized this theory to examine how green management practices, green commitment, and green attitudes contribute to the enhancement of employees' proenvironmental behaviour. the study highlighted the relevance of the amo theory in assessing green employee behaviours (hayyat et al., 2023). green factors and pro-environmental behaviour amid escalating global environmental apprehensions, businesses are swiftly adopting pro-environmental practices and initiatives, enhancing both their profitability and environmental sustainability (afsar et al., 2020). implementing ghrm practices significantly influences employees' proenvironmental behaviour (epbs) and their commitment to environmentally friendly practices (ansari et al., 2021. this underscores the positive impact of ghrm in fostering an environmentally conscious culture within businesses. further, the study explores that the relationship between proenvironmental behaviours of employees and ghrm practices is mediated by the green commitment of the employees. this states that cultivating a robust commitment to sustainable practices among employees contributes to the positive effects of ghrm on their environmental attitudes and behaviour (ansari et al., 2021). a study ojo et al. (2022) emphasizes the pivotal role of initiatives like environmentally-focused training, implementation of efficient performance management strategies, along with the facilitation of empowerment initiatives, plays a crucial role in the promotion of proenvironmental behaviour. the mediating impact of proenvironmental behaviour on the effects of green training is further emphasised, performance management, and emerment on environmental performance. integrating green practices aligns with transformative projects requiring active employee engagement. consequently, the hr department holds a significant role regarding communicating the importance of fostering a positive work environment to senior management. this environment encourages open discussions, diverse perspectives, and collaborative dialogues on environmental concerns (dede, 2019). according to emel and caliskan (2019) employee empowerment entails the delegation of increased authority by management to staff members for addressing environmental issues. facilitating active participation of employees in defining the organization's environmental objectives fortifies organizational mechanisms conducive to employee empowerment within the framework of green initiatives. the study farrukh et al. (2022) underscores the importance of incorporating green elements in predicting epb through the implementation of ghrm. in addition, the research assures the moderating influence of environmental knowledge. in conclusion, this research provides a comprehensive and cohesive comprehension of the strategies that can proficiently encourage epbs. subsequent hypotheses can be formulated based on these discussions: h1: a positive correlation exists between environmentally conscious human capital and the pro-environmental conduct of employees. h2: a positive connection is present between empowerment for eco-friendly initiatives and the pro-environmental conduct of employees. h3: a favourable association is observed between personal environmentally friendly values and the employee’s pro-environmental conduct. green commitment mediation green commitment (gc) is delineated as an inherent with an objective motivated by a duty to protect the environmen. according to montabon, pagell, & wu (2016), it involves an emotional connection, identification, active engagement, and genuine concern for environmental issues in the workplace. employees are less likely to prioritize pro-environmental agbioforum, 25(2), 2023 | 120 ghaleb & al-ameryeen — fostering employee pro-environmental behaviour: the mediating role of green commitment … activities in their daily work unless they possess a strong commitment to environmental preservation. thus, employees' gc offers a more effective explanation for the association between ghrm and epbs (afsar et al., 2020). personal investment and emotional attachment significantly influence employees' epbs. elevated levels of employees' green commitment (gc) are directly linked to epbs, including activities such as recycling, energy conservation, resource mindfulness, and an overarching commitment to fostering a sustainable environment in the workplace. the literature underscores the crucial role that gc plays as a mediator in the connections between ghrm and different organisational and employee outcomes. studies have particularly revealed gc's mediating role in the relationship between green recovery performance and grm (tuan, 2020). likewise, additional research has demonstrated the role of gc as a mediator between epbs and organisational factors. for example, (afsar & umrani, 2020) found that gc had a mediation effect in the link between epbs and csr actions. in light of these findings, the current study suggests that a worker's gc could act as a go-between for ghrm and epbs. in accordance with this, gc is delineated as an emploe's voluntary dedication to environmental concerns, which (chen et al., 2021) proposed to function as a mediating conduit between green factors initiatives and the manifestation of epbs. organisational commitment is directly impacted by green training and development, as well as green recruiting and selection (shoaib et al., 2021). this emphasises how important green commitment is as a mediator in implementing environmental policies to support green workplace initiatives, emphasizing the significance of ghrm practices in this context (shoaib et al., 2021). considering these conversations, the hypotheses that follow can be developed: h4: green commitment mediates the relationship between green human capital and employee pro-environmental behaviour. h5: green commitment mediates the relationship between green empowerment and employee pro-environmental behaviour. h6: green commitment mediates the relationship between individual green values and employee pro-environmental behaviour. moderating role of gse and environmental passion gse facilitates the generation of innovative ideas pertaining to green processes, eco-friendly infrastructure, sustainable products, and environmentally conscious practices. these ideas represent effective, distinctive, and inventive approaches to address environmental challenges (song & yu, 2018). the study akhtar et al. (2021) illustrate a noteworthy and favourable effect of market orientation on green product innovation as well as green self-efficacy (gse). additionally, gse significantly bridges the connection between innovative green products and commercial orientation. to enhance the indirect influence of employees in fostering pro-environmental behaviour through waste management, gse serves a positive moderating role (guo et al., 2019). another research by nurul alam et al. (2023) seeks to thoroughly investigate and evaluate the influence of ghrm on employees' epb. it delves into the crucial role of employee green commitment (gc) as a mediating factor, facilitating a comprehensive understanding of its influence on the relationship between ghrm practices and peb. furthermore, nurul alam et al. (2023) elaborate on the moderating function of gse and underscore its significance concerning the interplay between ghrm initiatives and employees' perspectives and actions pertaining to environmental sustainability. the study by choong et al. (2020) demonstrates that a favourable green workplace and environmental passion affect epb. a green work climate and epb are somewhat mediated by unified environmental enthusiasm. these endeavours are anticipated to cultivate heightened cohesive environmental passion, thereby facilitating the advancement of pro-environmental behaviour among organizational members (choong et al., 2020). the evaluation of an individual's or an organization's ability to achieve environmental objectives is regarded as a pivotal element of green self-efficacy, encompassing self-efficacy grounded in environmental considerations (chen et al., 2015). elevated green self-efficacy serves as a catalyst for individual pro-environmental actions (meinhold & malkus, 2005). a person's environmental attitudes and beliefs can be sparked by green self-efficacy (nordlund & garvill, 2003). the study gilal et al. (2019) about the implementation of green hrm practices positively contributes to improved environmental performance, facilitated by employees' fervour for environmental concerns. consequently, this study posits that: h7: gse moderates the association between green commitment and pro-environmental behaviour among employees. h8: gse moderates the association between green commitment and pro-environmental behaviour among employees. figure 1: conceptual framework agbioforum, 25(2), 2023 | 121 ghaleb & al-ameryeen — fostering employee pro-environmental behaviour: the mediating role of green commitment … 3. research methods sample and technique the study relied on a quantitative approach, known for its robustness and ability to provide objective findings (bryman, 2016). this approach facilitates the generalization of results due to the utilization of a substantial sample size. data collection for this study primarily involved obtaining cross-sectional data from organizations in the pharmaceutical sector in saudi arabia. information was gathered from employees working within the saudi arabian pharmaceutical industry. the researcher engaged with employees in the hr department of these companies, aiming to apprise potential participants of the study's objectives, as well as the measures in place to ensure data anonymity and confidentiality. the convenience sampling technique was utilized for its expeditious and cost-effective data collection advantages, enabling the researcher to include a diverse array of saudi arabian pharmaceutical companies. the survey strategy was considered apt due to its cost-effectiveness, and online questionnaires proved advantageous for seamless data collection, visualization, and storage. the data collection process yielded 243 responses, which underwent a comprehensive review. incomplete surveys were excluded, resulting in a final sample of 205 for data analysis. to mitigate the potential for social desirability bias, the researcher imparted explicit instructions to respondents during the data collection process. emphasis was placed on conveying that survey items had no definitive right or wrong answers. furthermore, respondents received guarantees regarding the privacy and anonymity of their answers. . measures the measurement items were drawn from established literature, using a likert scale with five points for the constructs. the scale ranged from 1 ("strongly disagree") to 5 ("strongly agree"). peb the response variable, was operationalized using seven items sourced from the work of robertson and barling (2013). hameed et al. (2020) approved three items for inclusion in calculating the individual green value (igv). likewise, saeed et al. (2019) measured the variable of green empowerment (gep) using six items. chen's (2008) study provided five questions to quantify ghc. while robertson & barling (2013) used the same study's ten items to gauge environmental passion (ep). the second moderator, gse, was quantified using six items from existing scale (chen et al., 2015). the mediating variable gc, was gauged using a total of eight items from the work of raineri and paillé (2016). analysis of the data the present study employed regression analysis to assess the stipulated hypotheses, encompassing both mediating and moderating effects. prior to hypothesis evaluation, the researcher conducted an examination of descriptive statistics, including the computation of skewness values to assess data normality and trends. this was followed by correlation analysis, providing insights into the interrelationships among variables. cronbach's alpha was used to evaluate the indicators' reliability; this approach has been used in earlier research with comparable data (nasir et al., 2023). subsequently, in the final stage, linear direct impacts were calculated using regression analysis, mediation effects, and moderation effects of gse and ep. this involved measuring the coefficients of the respective variables. the spss programme was used to carry out all statistical analyses for this research. findings descriptive statistics offer an insightful summary of the information, as depicted in table 1. utilizing a total of 205 complete responses, table 1 affirms the absence of any missing values for variables in the study. this underscores the quality, authenticity, and high level of engagement exhibited by respondents in completing the questionnaire. moreover, the skewness levels, which ranged between -2 and +2, confirm the symmetrical nature of the distribution (george & mallery, 2021) and affirmed the normality assumptions of the data. additionally, the computed mean values illustrated the response trend in the dataset, with values exceeding 3 indicating favourable perceptions among respondents regarding employee pro-environmental behaviour across all concepts addressed in the questionnaire. table 1: descriptive statistics n mean std. deviation skewness statistic std. error epb 205 3.8183 .94336 -1.231 .170 igv 205 3.7805 .92716 -1.039 .170 ghc 205 3.7376 .86637 -.881 .170 gep 205 3.2463 .80325 -.274 .170 gse 205 3.8309 1.09620 -.925 .170 gc 205 3.8652 .90844 -1.485 .170 valid n (listwise) 205 “note: igv= individual green values, ghc= green human capital, gep= green empowerment, epb= employees’ pro-environmental behaviour, gse= green self-efficacy, gc= green commitment, ep= environmental passion” subsequently, the correlation between the designated variables was calculated using pearson correlation, recognized as the most reliable and authentic analysis technique for correlation computation. table 2 illustrates that the variables demonstrated a positive and significant correlation, with no negative correlation coefficients reported. this outcome signifies a significant association among the targeted variables, thereby affirming the appropriateness of the designed model. agbioforum, 25(2), 2023 | 122 ghaleb & al-ameryeen — fostering employee pro-environmental behaviour: the mediating role of green commitment … table 2: pearson correlation epb igv ghc gep gse gc ep epb pearson correlation 1 .853** .797** .670** .766** .939** .605** sig. (2-tailed) .000 .000 .000 .000 .000 .000 n 205 205 205 205 205 205 205 igv pearson correlation .853** 1 .752** .689** .801** .906** .620** sig. (2-tailed) .000 .000 .000 .000 .000 .000 n 205 205 205 205 205 205 205 ghc pearson correlation .797** .752** 1 .631** .688** .833** .666** sig. (2-tailed) .000 .000 .000 .000 .000 .000 n 205 205 205 205 205 205 205 gep pearson correlation .670** .689** .631** 1 .683** .707** .556** sig. (2-tailed) .000 .000 .000 .000 .000 .000 n 205 205 205 205 205 205 205 gse pearson correlation .766** .801** .688** .683** 1 .845** .528** sig. (2-tailed) .000 .000 .000 .000 .000 .000 n 205 205 205 205 205 205 205 gc pearson correlation .939** .906** .833** .707** .845** 1 .614** sig. (2-tailed) .000 .000 .000 .000 .000 .000 n 205 205 205 205 205 205 205 ep pearson correlation .605** .620** .666** .556** .528** .614** 1 sig. (2-tailed) .000 .000 .000 .000 .000 .000 n 205 205 205 205 205 205 205 **. correlation is significant at the 0.01 level (2-tailed). “note: igv= individual green values, ghc= green human capital, gep= green empowerment, epb= employees’ pro-environmental behaviour, gse= green self-efficacy, gc= green commitment, ep= environmental passion” cronbach's alpha was used to evaluate the scale items' reliability; the results are shown in table 3. the constructions demonstrated acceptable internal consistency with a benchmark of 0.7 (taber, 2018). table 3: cronbach’s alpha var items value igv 3 .926 ghc 5 .873 gep 6 .690 epb 5 .862 gse 6 .980 gc 8 .958 ep 10 .914 “note: igv= individual green values, ghc= green human capital, gep= green empowerment, epb= employees’ pro-environmental behaviour, gse= green self-efficacy, gc= green commitment, ep= environmental passion” presented in table 4, the model summary offers insights into the strength of the relationship between the model and the predictors. a 78.4% estimate of the response variable's variability is provided by the modified r-squared value, ebp, can be accounted for by the explanatory variables gep, ghc, and igv. consequently, this implies that the model possesses adequate predictive power. table 4: summary of the model model r r square adjusted r square std. error of the estimate 1 .887a .787 .784 .43867 a. predictors: (constant), gep, ghc, igv the model's "goodness-of-fit" was evaluated using an analysis of variance (anova) employing the f-test for significance. this test offers insights into the appropriateness of the regression model in comparison to a model devoid of any predictors. the model shows a better match for the data, as indicated by table 5's significance level of 0.000. table 5: anova model sum of squares df mean square f sig. 1 regression 142.865 3 47.622 247.470 .000b residual 38.679 201 .192 total 181.544 204 a. dependent variable: epb b. predictors: (constant), gep, ghc, igv the initial hypothesis posited a positive association between ghc and epb. the results presented in table 6 confirm the hypothesized association at a significance level of 1%, indicating that ghc positively influences epb. secondly, gep was also observed to positively impact epb, and this association reached significance at a 10% level, providing support for the second hypothesis. similarly, the third hypothesis, suggesting a positive association between igv and epb, received support as the findings demonstrated that igv significantly and positively affects epb at a 1% important level. table 6: direct effect model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) .043 .147 .293 .770 ghc .365 .055 .335 6.588 .000 gep .100 .054 .086 1.850 .066 igv .552 .055 .542 9.964 .000 a. dependent variable: epb “note: ghc= green human capital, gep= green empowerment, igv= individual green values, epb= employees’ pro-environmental behaviour” according to the fourth hypothesis, gc mediates the connection between ghc and epb, and the results are presented in the table below. the findings confirmed a significant indirect effect and given the insignificance of agbioforum, 25(2), 2023 | 123 ghaleb & al-ameryeen — fostering employee pro-environmental behaviour: the mediating role of green commitment … the direct effect (p= .2673), full mediation of gc in the association between ghc and epb was established. similarly, the fifth hypothesis received support as gc significantly and fully mediated the relationship between gep and epb. lastly, with an insignificant direct effect and a significant total effect, gc was identified as fully mediating the association between igv and epb, as displayed in table 7. table 7: mediation analysis relationship total effect direct effect indirect effect confidence interval t-statistics conclusion lower bound upper bound ghc →gc →epb .8678 (0.000) .0528 (.267) .8150 .7768 .9588 18.7981 full mediation gep → gc → epb .7536 (0.000) .0583 (0.126) .6953 .6165 .8907 10.8389 full mediation igv → gc → epb .8681 (0.000) .0123 (.211) .8558 .7946 .9415 23.3007 full mediation “note: ghc= green human capital, gc= green commitment, epb= employees’ pro-environmental behaviour” according to the seventh hypothesis, which is supported by the data in table 8, gse moderates the association between gc and epb. however, the moderating impact of gse in the association between gc and epb was not substantiated, as the interaction term proved to be insignificant with a p-value exceeding 0.05. furthermore, the moderating impact of ep in the relationship between gc and epb was not supported by the data in the current investigation, as the introduction of ep as the moderator in the model did not yield significant results, as indicated by the insignificant interaction term (p=.3781). table 8: moderation analysis coeff se t p llci ulci gse constant .0168 .2270 .0739 .9412 -.4309 .4645 gc 1.0650 .0735 14.4948 .0000 .9201 1.2099 gse -.0713 .0991 -.7197 .4725 -.2667 .1241 int_1 -.0027 .0233 -.1145 .9089 -.0487 .0433 ep constant .2510 .3707 .6770 .4992 -.4800 .9819 gc .8568 .1051 8.1523 .0000 .6495 1.0640 ep -.0410 .1186 -.3458 .7298 -.2749 .1929 int_1 .0271 .0307 .8833 .3781 -.0334 .0877 “note: gse= green self-efficacy, gc= green commitment, ep= environmental passion” 4. discussion this study stands out since it examines green management practices and epb in the saudi arabian setting, focusing on the mediating effect of gc and the moderating roles of gse and ep. in alignment with expectations, the present study revealed a positive association between ghc and epb. this outcome resonates with the findings of shah et al. (2021) as they reported components of green intellectual capital comprising of ghc leads to enhanced environmentally responsible behaviour which leads to environmental performance. employees with higher ghc levels are more likely to practise resource conservation and waste minimization, among other environmentally friendly behaviours. therefore, consistent with the empirical findings, this study underscores that saudi organizations exhibiting robust green human capital tendencies are more likely to incorporate and integrate green practices, resulting in a higher prevalence of environmentally friendly behaviours. this trend signals a positive orientation towards sustainability within the organizational context and encourages environmentally favourable activities among employees. moreover, the research corroborated the positive association between gep and epb. this particular outcome underscores the significance of managerial green practices in empowering employees through acknowledgment of their efforts and involvement in green initiatives. consequently, this influence extends to employees' engagement in environmentally friendly behaviour. organizations prioritizing green initiatives and fostering employee empowerment in such activities tend to cultivate a workforce with environmentally oriented perceptions, resulting in increased participation in a multitude of eco-friendly and green activities. to empirically validate the extracted concept or association derived from the collected data, the researcher examined a study conducted by nasir et al. (2023) which asserted that gep can positively contribute to enhancing epb. drawing from the empirical evidence presented in the referenced study, the researcher has substantiated sufficient grounds to assert that the green empowerment initiatives implemented by organizations possess incremental influence on employees' proenvironmental behaviours. the present study further confirmed that igv significantly and positively influence epb among employees in saudi arabia. likewise, hidalgo-crespo et al. (2022) examined how people are more likely to engage in environmentally conscious conduct when they have environmental worries and beliefs. consequently, employees working in diverse organizations with a heightened inclination towards environmentally friendly practices are naturally more inclined towards various green activities, such as waste reduction, recycling, and restoration. this heightened environmental consciousness contributes to the active participation of employees in further green and environmentally sustainable initiatives. concerning the mediating role of gc, the results obtained in the present study substantiated the significant mediating role of gc in the association between ghc and epb. this implies that ghc influences epb through the mediation of employees' gc. in line with this ansari et al. (2021), verified a notable mediating role of gc, suggesting that organizations can elevate epb by adopting green practices that augment employees' knowledge and empower them. organizations operating in saudi arabia exhibit a positive emphasis on comprehensive green management practices, including the encouragement of employee engagement and commitment to green initiatives. this functions as both passive and active learning, contributing to the gradual development of intrinsic values among employees. agbioforum, 25(2), 2023 | 124 ghaleb & al-ameryeen — fostering employee pro-environmental behaviour: the mediating role of green commitment … consequently, employees are more inclined to participate in environmentally friendly activities, demonstrating heightened commitment. gc was also identified as a significant mediator in the relationship between gep and epb. this suggests that employees' dedication to environmental causes intensifies when they perceive increased empowerment through organizational practices, subsequently enhancing their engagement in epb. consistent with this, nasir et al. (2023) revealed that gc acts as a significant mediator in the relationship between gep and epb among employees in pharmaceutical companies. therefore, drawing on the empirical evidence from the literature study, this research illuminates those employees in saudi organizations are actively involved in more environmentally friendly practices. the extensive promotion of green management practices provides employees with a supportive push from the management, fostering empowerment for green initiatives. consequently, employees exhibit heightened commitment and engagement towards environmentally friendly and ecologically sustainable organizational practices. the association between igv and epb was also found to be significantly mediated by gc. this was also supported by paillé et al. (2019) since personal environmental beliefs were identified as increasing the propensity of employees to demonstrate heightened commitment to environmental causes. employees with ingrained values, beliefs, and mindsets aligned with green activities receive support from management, leveraging it to construct their green commitment. this, in turn, results in increased participation and adoption of environmentally friendly activities. according to mughal et al. (2022), gse did not significantly moderate the link between gc and epb. the findings of mughal et al. (2022) indicate that gse indirectly impacts the association between environmentally conscious leadership and epb in the energy sector. the divergent outcomes of this study may be attributed to factors such as employees' awareness of the actual implications of self-efficacy in the context of green management, insufficient data, or information dissemination to employees within saudi organizations, and potentially limited support provided by the management for self-efficacy initiatives. ultimately, ep was determined to be statistically insignificant as a moderator especially in between gc and epb. however, prior studies have shown that ep does contribute significantly to the relationship between organisational management and employees' epb, particularly in the manufacturing sector (li et al., 2020). this unconventional outcome could be attributed to the limited motivation extended by the management of saudi organizations to their employees. another contributing factor might be the absence of recognition and acknowledgment by organizations for employees actively participating in green practices. this lack of attention acts as a barrier to the cultivation of a robust dedication or passion among employees for both organizational and individual green practices. 5. conclusion the effects of gc and gse have not received as much attention as they should as the importance of green practises in businesses grows. this research aimed to examine the factors impacting epb to add to the body of existing literature, with a specific emphasis on gc as the mediator and gse and ep as the moderators, within the context of saudi arabia. employing a quantitative methodology, the study examined a sizable sample from the pharmaceutical industry in saudi arabia, collecting data through a survey strategy that yielded 205 complete responses, subsequently analysed using regression analysis. the conceptual framework proposed eight hypotheses, of which six were supported. consequently, the study underscored the direct influence of ghc, gep, and igv on employees' environmentally friendly actions, while highlighting the substantial indirect role of green commitment. this suggests that fostering environmentally responsible behaviours among employees can be achieved through their commitment to environmental causes. 6. implications of the study theoretical implications this study adds theoretical value in several ways. it underscores the pivotal role of green practices in reinforcing sustainability endeavours and constructs a conceptual framework establishing a connection between green values, green human capital, and green empowerment are examples of green employee-related factors—with epb. thus, it enriches the current literature by providing empirical substantiation and supplements the existing research in the environmental domain by elucidating the antecedents of epb. furthermore, the study explores the determinants of employees' engagement in environmentally friendly behaviour, incorporating both mediators and moderators. it provides evidence into the mediating role of gc, extending the findings of previous research (nasir et al., 2023). the study creates an avenue for future researchers to investigate additional mediators and determinants of epb. it also offers a conceptual framework that can be evaluated across various industries and cultural contexts. practical implications with regard to the research study's practical applicability, there is a notable emphasis on green practices within organizations, carrying significance for both organizational entities and employees in recognizing their roles in fostering environmentally friendly behaviour. given the escalating concerns surrounding environmental degradation, companies can leverage the findings to integrate green practices that heighten employees' environmental awareness and engagement in eco-friendly behaviours. for instance, considering the significance attributed to ghc and gc, organizations may offer training programs addressing environmental issues to enhance employee knowledge and bolster their commitment. one way to cultivate a workforce with higher ghc is to prioritise the adoption of green practises, consequently fostering pro epb. this can be achieved through the introduction of developmental agbioforum, 25(2), 2023 | 125 ghaleb & al-ameryeen — fostering employee pro-environmental behaviour: the mediating role of green commitment … initiatives and knowledge-sharing programs. green training initiatives, focusing on waste management, paper usage, and energy conservation, can effectively raise employee awareness and help encourage behaviour that is environmentally friendly. additionally, recognizing the pivotal role of employee empowerment, organizations should involve employees in green decision-making processes to instil environmentally conscious behaviours and practices. a company's commitment to environmentally responsible behaviour will be strengthened when its employees are actively supported and encouraged to participate in green practises. 7. limitations and future research while this study has provided valuable insights for both theoretical understanding and practical applications, it is crucial to acknowledge certain limitations. the research was confined to a specific industry and country context. future investigations should seek to validate the proposed framework in diverse industries and cultural contexts to ascertain its applicability across varied sectors and cultures. methodologically, the study relied on crosssectional data, limiting the examination of causal relationships. subsequent research endeavours could adopt a longitudinal design for a more comprehensive analysis. additionally, the use of a quantitative methodology prioritized objectivity; however, future researchers may delve into a more in-depth exploration by incorporating a qualitative approach. lastly, there is a necessity to identify and incorporate other variables that may exert influence on pro-environmental behaviour. acknowledgment this work was supported by the deanship of scientific research, vice presidency for graduate studies and scientific research, king faisal university, saudi arabia [grant 5317]'. references afsar, b., al-ghazali, b., & umrani, w. 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2. we can achieve most of environmental goals 3. we feel competent to deal effectively with environmental tasks 4. we can perform effectively on environmental missions. 5. we can overcome environmental problems. 6. we could find out creative solutions to environmental problems. green commitment (raineri & paillé, 2016) 1. i really care about the environmental concern of my company. 2. i would feel guilty about not supporting the environmental efforts of my company. 3. the environmental concern of my company means a lot to me. 4. i feel a sense of duty to support the environmental efforts of my company. 5. i really feel as if my company’s environmental problems are my own. 6. i feel personally attached to the environmental concern of my company. 7. i feel an obligation to support the environmental efforts of my company. 8. i strongly value the environmental efforts of my company. green human capital (chen, 2008) 1. the productivity and contribution of environmental protection of the employees in the firm is better than those of its major competitors 2. the employees’ competence of environmental protection in the firm is better than that of its major competitors 3. the product or service qualities of environmental protection provided by the employees of the firm are better than those of its major competitors 4. the cooperative degree of team work about environmental protection in the firm is more than that of its major competitors 5. the managers can fully support their employees to achieve their jobs of environmental protection green empowerment (saeed et al., 2019) 1. recognizing employee as a key stakeholder in environmental management. 2. providing opportunities to negotiate with management about green workplace agreement. 3. introducing green whistle‐blowing and help‐lines. 4. providing opportunities to the employee to involve and participate in green suggestion schemes and joint consultations for environmental issues problem solving 5. offering workshops or forums for staff to improve environmental behaviour and exchange their tacit knowledge. 6. involving employee in formulating environmental strategy. individual green value (hameed et al., 2020) 1. i feel a personal obligation to do whatever i can to prevent environmental degradation. 2. i feel personally obliged to save as much energy as possible. 3. i feel morally obliged to save energy, regardless of what others do. agbioforum, 25(2): 107-117. ©2023 agbioforum exploring the association between green innovation, leadership and environmental performance: mediation of green self-efficacy musaddag elrayah* assistant professor, department of management, college of business administration, king faisal university, al-ahsa 31982, saudi arabia. email: melrayah@kfu.edu.sa ooi chee keong school of accounting and finance, faculty of business and law, taylor’s university malaysia. email: cheekeong.ooi@taylors.edu.my *corresponding author email: melrayah@kfu.edu.sa the persistent escalation of emissions emanating from the manufacturing industry gives rise to inefficiencies in environmental sustainability. this underscores the imperative incorporation of green technological innovation and leadership strategies to enhance environmental performance. this predicament is notably prevalent in the manufacturing sector of saudi arabia. consequently, the current investigation centres on evaluating the influence of "green intellectual capital (gic), green management innovation (gmi), green technology innovation (gti), and green transformational leadership (gtl)" on a firm's environmental performance (ep). the study further integrates the mediating role of green self-efficacy (gse) and the moderating effect of green empowerment (ge). utilizing a quantitative approach, data were collected from 210 employees in the saudi arabian manufacturing sector through surveys, and subsequent statistical analyses were conducted. the findings of this study reveal that gic, gmi, and gtl exert a significant impact on ep. in contrast, gti demonstrates an insignificant influence on ep. however, the mediating role of gse is deemed significant, and ge exhibits a noteworthy moderating effect in the relationship between gse and ep. this study not only contributes empirically but also provides theoretical and practical implications, offering valuable insights to enhance environmental performance within the manufacturing sector under consideration. keywords: green technology innovation; environmental performance; green management innovation; green self-efficacy; green transformational leadership; green empowerment 1. introduction manufacturing enterprises represent prominent contributors to global climate change. the emission of harmful gases from these entities leads to diverse environmental and health repercussions, underscoring the imperative for the adoption of green innovation (trujillogallego et al., 2021). nevertheless, the reconciliation of environmental concerns with economic advantages has emerged as a formidable challenge for manufacturers in the contemporary era of globalization. similarly, within the context of saudi arabia, the manufacturing sector is committed to enhancing its environmental performance by incorporating impactful and innovative green technology. in saudi arabia, the manufacturing sector continues to experience sustained growth, contributing approximately us$156 billion to the country's gdp in 2023. furthermore, it is anticipated to exhibit an annual growth rate of 2.78% from 2023 to 2028 (statista, 2023). hence, the intensely competitive manufacturing sector has prompted numerous companies in saudi arabia to adopt green technology and management innovation, thereby enhancing their overall corporate performance. the saudi arabian government has concurrently introduced the "saudi green initiative" (sgi), with the aim of achieving zero emissions by 2030 through a circular economy approach, facilitating the transition to a green economy (sgi, 2023). according to asiaei et al. (2023), gic significantly impacts a firm's environmental performance. in this context, effective green training and development initiatives have proven to enhance gic, underscoring the importance of incorporating a proficient leadership approach. consequently, the adoption of gtl is anticipated to be efficacious in motivating employees and other relevant stakeholders to undertake crucial measures in achieving environmental objectives (al-ghazali et al., 2022). this leadership approach has a lasting impact on employees, resulting in enhanced ep. in this context, the significance of gse among employees is pivotal for attaining the necessary environmental objectives (guo et al., 2019). thus, this study effectively assesses the influence of gti and leadership on ep in the saudi arabian manufacturing sector. additionally, it introduces novelty by examining the moderating effect of green empowerment on the relationship between green selfefficacy and ep. this study encompasses three primary objectives: (a) assessing the influence of gic, gmi, gti, and gtl on ep; (b) examining the mediating role of gse; and (c) investigating the moderating effect of green empowerment in the relationship between gse and ep. hence, this current research holds both theoretical and practical significance, enhancing its efficacy. notably, the study contributes to the literature by investigating the impact of green empowerment on the relationship between gse and ep, thereby advancing existing knowledge. additionally, the research expands the literature on green technology innovation within the saudi arabian manufacturing sector. moreover, it serves as a catalyst for managerial action, encouraging the integration of gti and gtl to enhance environmental performance. furthermore, the study suggests the formulation of effective green policies to mitigate emissions from manufacturing firms. mailto:melrayah@kfu.edu.sa mailto:cheekeong.ooi@taylors.edu.my mailto:melrayah@kfu.edu.sa agbioforum, 25(2), 2023 | 108 elrayah & keong — exploring the association between green innovation, leadership and environmental performance 2. literature review theoretical background the natural resource-based view (nrbv) was initially formulated by hart (1995) and this theoretical framework posits that organizations can employ diverse environmental protection strategies, focusing on pollution reduction, product stewardship, and the promotion of sustainable development, to gain a competitive advantage (barney et al., 2010). the nrbv delineates three key strategic capabilities: pollution prevention, product stewardship, and sustainable development, emphasizing their pivotal role in driving environmental performance. pollution prevention enables firms to abstain from releasing pollutants into the environment, advocating for environmental cleanliness. for instance, companies can optimize efficiency and reduce production costs by eliminating polluting factors from their processes. product stewardship, extending beyond pollution prevention, involves integrating environmental responsibility throughout the firm's value chain. this entails engaging stakeholders in incorporating environmental considerations into product design and manufacturing processes. lastly, a sustainable development strategy facilitates the establishment of environmentally friendly production methods designed for indefinite use (barney et al., 2010). hence, the natural resource-based view's emphasis on the contingent nature of resources and capabilities has enabled researchers to establish a connection between the environmental and financial performances of firms (barney et al., 2010). numerous scholars have contributed to the theoretical literature on the nrbv by identifying diverse organizational capabilities capable of influencing the profitability outcomes associated with the adoption of pollution prevention strategies by firms. their investigations lay the foundation for the assertion that firms endowed with robust innovation capabilities exhibit greater potential to sustain financial performance when implementing pollution prevention strategies (king & lenox, 2002). the nrbv also supports the concept of clean technology, as evidenced by the research conducted by hart (1995) posits that although pollution prevention and product stewardship contribute to environmental performance, firms need to mitigate their energy consumption by embracing strategies involving clean technology. consequently, these firms can gain a competitive edge by embracing clean technologies and abstaining from practices detrimental to the environment (meurig thomas & raja, 2005). hart (1997) clearly differentiated between "greening" strategies, encompassing pollution prevention and product stewardship, and "beyond greening" strategies, involving clean technology and sustainable development. this distinction allows firms to orient themselves toward a sustainable future and enhance their environmental performance. lately, the escalating entrepreneurial activity has heightened scholarly interest in clean and green technology (haque, 2022; wei et al., 2023). barney et al. (2010) assert that the cultivation of clean technology necessitates a focus on innovation. building on this premise, the present study conceptualizes gic as an implicit resource and an ever-evolving dynamic capability for manufacturing firms. within this framework, organizations aspiring to amplify the influence of gic on gse and subsequently on environmental performance stand to gain a competitive advantage that may prove challenging for their counterparts to replicate or pursue. furthermore, it provides an avenue for manufacturing firms to continually fortify their competitive edge by acquiring knowledge through gmi and empowering their gse. this involves leveraging the organization's gti and gtl to mitigate the adverse effects of manufacturing processes on the environment and contribute to environmental regeneration. relationships between green factors and environmental performance the study nisar et al. (2021) suggests that the incorporation of green human resource practices, encompassing green innovation and development, along with the management of green discipline, serves as a substantial predictor for the cultivation of green intellectual capital. this, in turn, makes a constructive contribution to the advancement of pro-environmental performance. the study nisar et al. (2021) illustrates that green human resource management practices indirectly influence environmental performance by fostering the development of gic and encouraging pro-environmental behaviours. the study abu seman et al. (2019) reveal a significant and positive correlation between gscm, encompassing both green innovation and environmental performance. moreover, the findings indicate that gi has a positive impact on environmental performance. additionally, the study unveils that green innovation acts as a mediator in the connection between green supply chain management and environmental performance (abu seman et al., 2019). the incorporation of these practices compels organizations to strengthen and sustain their relationships with suppliers and customers, with the goal of attaining elevated environmental performance (abeysundera, 2022). this involves the oversight and control of suppliers to guarantee the supply of environmentally friendly materials, thereby mitigating adverse environmental impacts during production processes. concurrently, organizations endeavour to satisfy customer preferences for environmentally sustainable products. furthermore, green management innovation is instrumental in cultivating environmental performance (abeysundera, 2022). innovation in green technology functions as a medium or mechanism through which financial influences shape and alter environmental and energy-related performance. this process entails the application of state-of-the-art technological advancements, breakthroughs, and strategies specifically crafted to advance environmental sustainability and enhance efficiency in the energy sector (cao et al., 2021). the process involves integrating financial strategies and instruments to incentivize the development and adoption of environmentally sustainable agbioforum, 25(2), 2023 | 109 elrayah & keong — exploring the association between green innovation, leadership and environmental performance technologies, ultimately resulting in enhanced energy efficiency and a reduced ecological footprint. singh et al. (2020) propose that the association between gtl and gi is mediated by the implementation of hrm practices. this indicates that the impact of green hrm on the environmental performance of businesses occurs indirectly through its influence on green innovation. moreover, it underscores the idea that the relationship between hrm and performance relies not solely on the additive or interactive effects of green innovation and green transformational leadership, but rather on their combined influence, ultimately enhancing firm environmental performance. in conclusion, this highlights the pivotal role of leadership in shaping hrm practices, which, in turn, impact green innovation within businesses. considering the above discussion, the formulation of the following hypotheses is plausible: h1: there is a positive relationship between gic and ep. h2: there is a positive relationship between gmi and ep. h3: there is a positive relationship between gti and ep. h4: there is a positive relationship between gtl and ep. green self-efficacy as a mediator gse represents a manifestation of self-awareness that positively impacts both pro-environmental behaviour and enduring performance. the augmentation of gse is anticipated to be a catalyst for enhanced sustainable performance (obeidat et al., 2020). warith (2019) propose that gse possesses the capacity to stimulate an individual's environmental attitudes and perspectives, thereby fostering the adoption of pro-environmental practices. nisar et al. (2021) suggests that exploring moderating variables, such as gse, provides an intriguing avenue for research beyond the direct relationship between pro-environmental behaviour and gic. therefore, a critical variable that may influence the nature and extent of the association between gic and pro-environmental behaviour is gse. the study javaid et al. (2023) suggest that the attainment of sustainable development, especially in developing nations, is significantly contingent on the acquisition of environmental knowledge. remarkably, there is a limited body of research that has investigated the role of green self-efficacy as a mediator within the context of sustainable performance and environmental knowledge. the study zhang et al. (2020a) suggest that both gtl and gse possess the capability to augment the performance of green product development. in particular, gse functions as a mediator in the positive correlation between gtl and the performance of green product development. moreover, environmental regulation positively moderates the mediating influence of gse. furthermore, the interplay between environmental regulation and gse collectively promotes the advancement of green product development performance (zhang et al., 2020a). gtl cultivates the enhancement of employees' gse through the establishment of achievable environmental objectives, delineation of environmental benchmarks, cultivation of an environmental ethos, and alignment of individual behaviour with desired outcomes (chen et al., 2015). individuals exhibiting elevated levels of gese tend to be predisposed toward fostering innovative concepts, conceptualizing creatively environmentally friendly products and services, and demonstrating a strong sense of social responsibility towards environmental preservation. this disposition enables enterprises to attain a competitive advantage, resulting in enhanced economic performance and increased profitability (chu et al., 2021). within the association between gtl and employees' environmentally conscious attitudes and behaviours, gse assumes a pivotal mediating role. operating as a psychological mechanism, gse facilitates the absorption of the direction and motivation provided by gtl, empowering and instilling confidence in staff members to actively engage in sustainable activities and endorse the company's environmental initiatives (huang et al., 2023). based on the foregoing discussion, the following hypotheses can be posited: h5: gse mediates the relationship between gic and ep. h6: gse mediates the relationship between gmi and ep. h7: gse mediates the relationship between gti and ep. h8: gse mediates the relationship between gtl and ep. green empowerment's moderating role the term "green empowerment," derived from the contextual framework, denotes a comprehensive strategy encompassing all organizational initiatives aimed at cultivating an environmentally conscious work culture among employees. it involves the deliberate development, implementation, and continuous maintenance of programs and systems that promote ecologically friendly behaviour among employees. the integration of environmental management considerations and values into human resources management strategies has the potential to reduce employee carbon footprints, fostering increased efficiency and improved environmental performance (adi et al., 2021). the study ojo et al. (2022) suggest that the implementation of green training and development, performance management, as well as empowerment and participation programs is essential to enhance proenvironmental performance. the study ahuja et al. (2023) indicates that the relationship between millennial employee retention and three ghrm practices—green rewards, green performance management, and green training—is substantially moderated by empowerment. this implies that the efficacy of these ghrm practices in retaining millennial workers is contingent on the level of empowerment among employees. the study also elucidates the positive mediation of employee green empowerment in the relationships between ghrm practices, customer environmental collaboration, and environmental performance (hutomo et al., 2020). in the current study, it is asserted that green empowerment serves as a moderator in the relationship between gse and ep. according to hameed et al. (2020), green hrm practices employ green employee empowerment as a mediator. this study investigates the impact of green empowerment on the relationship between environmental performance and green self-efficacy. the study (nisar et al., 2022) elucidates the correlation between the human resources department and the promotion of employees' gse, underscoring their role in facilitating contributions to enhance ep. consequently, the following hypothesis is posited: h9: ge moderates the relationship between gse and ep. agbioforum, 25(2), 2023 | 110 elrayah & keong — exploring the association between green innovation, leadership and environmental performance figure 2.1. conceptual framework 3. method research design this study primarily concentrates on examining the influence of gic, gmi, gti and gtl on ep, elucidating the causal relationships between these variables. consequently, the positivist research philosophy was employed in this study (alharahsheh & pius, 2020). however, this study incorporates a mediation-moderation model, underscoring the integration of objectivism. therefore, a deductive approach was employed. the quantitative methodology, specifically a cross-sectional approach, was chosen for data collection through surveys to ascertain the cause-and-effect relationships among the study constructs. subsequently, statistical analysis was conducted to test the hypotheses. participants and sampling this study primarily centres on assessing the influence of gti and leadership on environmental performance within the framework of the manufacturing sector in saudi arabia. consequently, the most appropriate population for this study comprises employees from various manufacturing firms in saudi arabia. it is anticipated that in 2023, the workforce in saudi arabia's manufacturing sector will witness an increment of 1,190,000 employees (statista, 2023). the extensive size of the population posed a challenge for the researcher in data collection. consequently, random sampling was employed to mitigate research bias, resulting in the selection of a final sample of 210 participants for this study. data collection route this study employed an online survey to gather the necessary data from the chosen sample size. the questionnaire devised for the survey comprised two sections. section i encompassed participant demographics, encompassing age, gender, and education. section ii comprised questions related to the constructs under investigation in the study. participant confidentiality was diligently preserved throughout this study, with individuals afforded complete autonomy regarding their participation. this approach fostered a productive relationship between the researcher and participants, enhancing the credibility of the outcomes. additionally, the researcher upheld the integrity of the collected data, ensuring the absence of research bias. table 3.1 provides an overview of the measures employed in this study. table 3.1. measures variables items adapted from references scale gic 5 (chen, 2008) (chen, 2008) 5-point likert scale (“1= strongly agree to 5= strongly disagree”) gmi 6 (banerjee, 2002; hong et al., 2009; peng & lin, 2008) (zhou et al., 2019) gti 5 (huang & li, 2017; singh & elkassar, 2019) (sahoo et al., 2023) gtl 6 (chen & chang, 2013) (al-ghazali et al., 2022) ep 5 (huang & li, 2017; vanalle et al., 2017) (sahoo et al., 2023) gse 6 (chen et al., 2015) (mughal et al., 2022) green empowerment 8 (yu et al., 2011) (farheen et al., 2020) statistical analysis technique in this study, statistical analysis was undertaken using spss to ascertain both descriptive and inferential statistics. anova was employed to assess the model's adequacy, and regression analysis was conducted to test the formulated hypotheses. 4. results demographics of participants the demographic profile of the study revealed that 40% of the selected participants were female, whereas 60% were male. regarding age distribution, 30% fell within the bracket of 25 to 30 years, 50% were aged between 31 and 35 years, and 20% were above 35 years of age. in terms of education, 50% of the participants had completed their undergraduate studies, while the remaining 50% held postgraduate degrees. descriptive statistics table 4.1 presents the descriptive statistics for the current study, indicating data collection from a participant pool of 210 individuals. the minimum and maximum values for each variable were observed to be 1 and 5, respectively. notably, the mean values for each variable exceeded 3, signifying substantial outcomes. furthermore, the skewness values fell within the range of -1 to +1, indicating statistically significant results. agbioforum, 25(2), 2023 | 111 elrayah & keong — exploring the association between green innovation, leadership and environmental performance table 4.1. descriptive statistics descriptive statistics n min max m. std. dev. skewness statistic statistic statistic statistic statistic statistic std. error ep 210 1.00 5.00 3.8012 .94372 -1.178 .168 gic 210 1.20 5.00 3.7476 .94869 -.997 .168 gti 210 1.20 5.00 3.7286 .86375 -.851 .168 gmi 210 1.00 5.00 3.4657 1.03511 -.396 .168 ge 210 1.00 5.00 3.2327 .80114 -.242 .168 gtl 210 1.00 5.00 3.7540 .90221 -1.213 .168 gse 210 1.00 5.00 3.7913 1.12293 -.879 .168 valid n (listwise) 210 max= maximum, m= mean, min= minimum, ep= environmental performance, gic= green intellectual capital, gti= green technology innovation, gmi= green management innovation, ge= green empowerment, gtl= green transformational leadership, gse= green self-efficacy correlation analysis table 4.2 displays the results of the correlation analysis in this study, illustrating the associations between various variables. the observed significance level for each correlation was less than 0.01, indicating the statistical significance of the relationships between the variables. consequently, the data was deemed suitable for further analysis. table 4.2. correlation analysis ep gic gti gmi g_e gtl gse ep pc 1 .834** .785** .698** .670** .915** .747** sig. (2-tail) .000 .000 .000 .000 .000 .000 n 210 210 210 210 210 210 210 gic pc .834** 1 .730** .610** .680** .848** .804** sig. (2-tail) .000 .000 .000 .000 .000 .000 n 210 210 210 210 210 210 210 gti pc .785** .730** 1 .686** .631** .780** .681** sig. (2-tail) .000 .000 .000 .000 .000 .000 n 210 210 210 210 210 210 210 gmi pc .698** .610** .686** 1 .505** .617** .580** sig. (2-tail) .000 .000 .000 .000 .000 .000 n 210 210 210 210 210 210 210 ge pc .670** .680** .631** .505** 1 .624** .684** sig. (2-tail) .000 .000 .000 .000 .000 .000 n 210 210 210 210 210 210 210 gtl pc .915** .848** .780** .617** .624** 1 .721** sig. (2-tail) .000 .000 .000 .000 .000 .000 n 210 210 210 210 210 210 210 gse pearson correlation .747** .804** .681** .580** .684** .721** 1 sig. (2-tailed) .000 .000 .000 .000 .000 .000 n 210 210 210 210 210 210 210 **. correlation is significant at the 0.01 level (2-tailed). ep= environmental performance, gic= green intellectual capital, gti= green technology innovation, gmi= green management innovation, ge= green empowerment, gtl= green transformational leadership, gse= green self-efficacy; pc= pearson correlation; tail= tailed model summary the r square in the model summary represents the percentage of variance contributed by the predictors to the dependent variable in this study. as indicated in table 4.3, the predictors account for 87.1% of the variance in the associated dependent variable. table 4.3. model summary model r r square adj. r square std. error of the estimate 1 .935a .874 .871 .33840 a. predictors: (constant), gtl, gmi, gti, gic, adj= adjusted anova to assess the fitness and adequacy of the model in the current research, anova was employed to ascertain differences between the means of the relevant variables. as depicted in table 4.4, the f-value for the model was 355.103, and the significance level was below 0.01, affirming the suitability of the model for further analysis. table 4.4. anova model sum of squares df mean square f sig. 1 regression 162.661 4 40.665 355.103 .000b residual 23.476 205 .115 total 186.137 209 a. dependent variable: ep b. predictors: (constant), gtl, gmi, gti, gic direct results table 4.5 presents the outcomes of the direct associations between the variables. it was noted that gic, gmi, and gtl exhibited a significant impact on ep, as evidenced by p-values less than 0.05. however, gti showed an insignificant impact on ep. agbioforum, 25(2), 2023 | 112 elrayah & keong — exploring the association between green innovation, leadership and environmental performance table 4.5. direct results model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) -.044 .109 -.409 .683 gic .135 .048 .136 2.814 .005 gti .074 .048 .068 1.547 .123 gmi .159 .032 .174 4.971 .000 gtl .669 .055 .640 12.237 .000 a. dependent variable: ep ep= environmental performance, gic= green intellectual capital, gti= green technology innovation, gmi= green management innovation, gtl= green transformational leadership mediation analysis table 4.6 outlines the findings regarding the mediating impact of gse. it was noted that gse significantly mediates the association between gic and ep, gti and ep, gmi and ep, as well as between gtl and ep (p < 0.05). the lower and upper values for each mediation ranged between.50 and.960. however, for the gse mediation between gtl and ep, the lower value was.900, and the upper value was 1.015. table 4.6. mediation analysis relationship t. e d.e i.e confidence interval t statistics p value conclusion l bound u bound gic→gse→ep .8297 .6562 .1735 .7546 .9047 21.8025 .0000 accepted gti→ gse → ep .8582 .5636 .9506 .7658 .9506 18.3043 .0000 accepted gmi→ gse → ep .6365 .3637 .2729 .5473 .7258 14.0651 .0000 accepted gtl→ gse → ep .9575 .8209 .1367 .9000 1.0151 32.7965 .0000 accepted t. e= total effect; d. e= direct effect; i. d= indirect effect; l= lower; u= upper moderation analysis table 4.9 presents the outcomes of the moderating impact analysis of ge in the association between gse and ep. it was observed that ge exerts a significant moderating impact in the association between gse and ep (p < 0.05). table 4.9. moderation analysis model coeff se t p llci ulci conclusion constant -.9189 .4487 -2.0478 .0418 -1.8035 -.0342 accepted gse .9700 .1249 7.7644 .0000 .7237 1.2163 ge 1.0878 .1787 6.0873 .0000 .7355 1.4401 int_1 -.1923 .0432 -4.4529 .0000 -.2774 -.1071 5. discussion this study primarily seeks to investigate the influence of green innovation and leadership on the ep within the manufacturing sector in saudi arabia. the mediating role of gse was incorporated into the analysis, along with the observation of the moderation effect of green empowerment. quantitative data were gathered from 210 employees through a survey method, and subsequent statistical analysis yielded four significant findings from this study. initially, noteworthy findings indicate that gmi, gtl, and gic significantly influence ep, corroborating hypotheses 1, 2, and 4. these results underscore the pivotal role of human capital and management in enhancing the ep of manufacturing firms in saudi arabia. notably, the incorporation of gtl at the executive level is identified as crucial in motivating employees to engage in environmentally friendly practices, thus contributing to substantial sustainable outcomes and bolstering the company's social and sustainable image. this result underscores the critical imperative for manufacturers in saudi arabia to acknowledge the significance of incorporating and promoting green management practices, exemplified by gmi, and integrating gtl within the organizational framework. furthermore, it highlights the strategic necessity for prioritizing environmentally friendly manufacturing processes and cultivating green leadership to augment the environmental performance of organizations. additionally, it emphasizes the need for the manufacturing sector in the kingdom of saudi arabia (ksa) to proactively develop leaders by investing in programs aimed at enhancing leaders' environmental consciousness and green knowledge. such empowerment of leaders would enable the implementation of green initiatives and the promotion of eco-friendly practices within the organization. the manufacturing sector's focus on green initiatives is instrumental in fostering a culture of sustainability, thereby positively influencing its environmental performance. this strategic approach aligns with the global emphasis on eco-conscious manufacturing practices and can contribute to organizations gaining a competitive edge in the environmentally conscious global market. moreover, the study's revelations concerning the positive impact of gic on environmental performance underscore the importance of investing in knowledge and intellectual resources dedicated to promoting environmental sustainability. the manufacturing sector in saudi arabia should prioritize the cultivation of its intellectual capital to foster a culture of green practices in the manufacturing process. this can be achieved through the implementation of a learning culture, providing training to employees in terms of environmental consciousness and green behaviour. this transformation of the human resource of the firms into a form of gic aims at fostering innovative and sustainable manufacturing processes. consequently, the manufacturing sector can enhance its intellectual capital by incorporating green values, positioning itself more competitively in the global market. such an approach not only improves the global image of associated companies but also serves as agbioforum, 25(2), 2023 | 113 elrayah & keong — exploring the association between green innovation, leadership and environmental performance motivation for other firms to integrate gmi, gtl, and gic to enhance their ep (yin et al., 2022). secondly, it is evident that gti does not exhibit a significant association with ep, thereby rejecting hypothesis 3. this outcome suggests that, despite the ongoing technological advancements, numerous manufacturing firms in saudi arabia face challenges in adapting to these technologies, consequently constraining their overall performance in this domain. furthermore, the successful integration of advanced and innovative green technologies necessitates a skilled and technical workforce. the absence of such technical capabilities can thereby exert a negative impact on the ep of the affiliated firms (zhang et al., 2020b). nevertheless, several manufacturing firms in saudi arabia remain steadfast in their commitment to enhancing gti to gain a competitive advantage, leading to increased social and financial benefits. the rejection of hypothesis 3 underscores the imperative for manufacturers in the kingdom of saudi arabia (ksa) to reassess their innovation strategies, particularly those related to the incorporation of green technology. the absence of a significant correlation between gti and ep in the context of the current study's findings also implies that the sole investment in gti may not suffice to improve the ep of manufacturing firms. other factors may be at play in influencing the environmental performance of the manufacturing sector in the ksa. thirdly, it is noteworthy that gse exhibits a significant mediating effect, affirming hypotheses 5, 6, 7, and 8. in accordance with self-determination theory, individuals with heightened self-determination also demonstrate elevated self-efficacy, thereby motivating them to optimize their performance (gagné et al., 2022). thus, in the context of this study, individuals with elevated gse were more inclined to execute green tasks with greater efficiency, thereby contributing to the enhancement of their firms' ep. robust gse not only serves as a motivator for employees but also encourages both employees and management to integrate gti and gmi to elevate the firm's ep. conversely, individuals with lower gse demonstrated less motivation to advocate for green technology and management, resulting in a negative impact on ep. therefore, it is imperative to enhance gse among employees, fostering a collaborative effort to improve the firm's ep. this discovery underscores the critical importance of implementing employee training programs specifically designed to augment gse within the manufacturing sector. such programs can aid in developing a workforce with heightened environmental awareness and gse, thereby assisting the organization in elevating its ep and achieving sustainability objectives. additionally, this finding implies that leaders should possess adept skills to influence and shape the gse of employees, subsequently enhancing the overall ep of the organization. fourthly, it is evident that green empowerment exerts a significant moderating effect on the association between gse and ep, confirming hypothesis 9. green empowerment contributes to enhancing the collective capability of employees to implement green and sustainable strategies, thereby positively impacting the ep of the firm. this approach also serves to elevate gse among employees, improving their overall sustainable performance and potentially providing the associated company with a competitive advantage. conversely, the absence of green empowerment can detrimentally affect the overall gse of employees, hindering their optimal performance within the context of the firm's ep. the validation of hypothesis 9 underscores the imperative for the manufacturing sector in the kingdom of saudi arabia to prioritize the reinforcement of employees' green empowerment. this reinforcement can empower employees to manifest green behaviour and actively participate in the organization's green initiatives. achieving this entails granting employees autonomy in the execution of green initiatives. consequently, the organizational emphasis on implementing green empowerment measures among employees has the potential to enhance their gse and subsequently elevate the ep of the organization. 6. conclusion the escalating global concern over climate change has spurred various sectors to address the emission of toxic gases. in response, the manufacturing sector has undergone significant transformation through the adoption of green innovation, underscoring the importance of integrating green technology innovation and transformational leadership. the implementation of green technology and management is paramount for mitigating climate change. however, the significance of gse and green empowerment among employees within this sector is also crucial to ensuring the effective ep of the firm. thus, this study delves into the impact of gti and leadership on ep within the specific context of the manufacturing sector in saudi arabia. this study has specifically examined the influence of gse and green empowerment among employees in the manufacturing sector on the ep of firms. the findings from this study reveal that gti has a negligible impact on ep, whereas gmi, gtl, and gic significantly influence ep. furthermore, the mediating role of gse was deemed significant, and the moderating impact of green empowerment was also found to be significant. 7. research implications theoretical implications presently, considerable attention is devoted to environmental literature, investigating the impact of gti and management on enhancing the sustainable performance of affiliated firms. consequently, the current research makes a notable contribution to the existing body of knowledge on gti and environmental literature, with a specific emphasis on the role of gtl. this contribution holds potential for elevating public awareness and informing stakeholders about the pivotal role of gtl in enhancing ep. furthermore, the study highlights the innovative aspect of exploring the moderating influence of green empowerment in the relationship between gse and agbioforum, 25(2), 2023 | 114 elrayah & keong — exploring the association between green innovation, leadership and environmental performance ep, adding a layer of novelty and overall value to the research. thus, the present study underscores the advocacy for green management promotion as a means to enhance ep, fostering increased environmental sustainability within the environmental sector. practical implications the findings derived from this study are poised to serve as a catalyst for management across diverse manufacturing firms, motivating them to formulate and implement robust green technology and strategies aimed at enhancing the firms' ep. simultaneously, this research holds the potential to inspire various stakeholders to adopt green management practices to elevate ep, with a specific emphasis on the integration of gtl. furthermore, the study is anticipated to stimulate governmental bodies to develop new and impactful green initiatives for bolstering environmental sustainability. such initiatives could pave the way for the formulation and execution of effective green policies and strategies in the manufacturing sector, ultimately yielding positive environmental outcomes. 8. limitations and future research directions this study encompasses several limitations that may affect its robustness. firstly, the exclusive focus on the manufacturing sector to assess the influence of green technology innovation on ep was driven by the ease of data accessibility, potentially limiting the generalizability of findings to other sectors. additionally, the inclusion of only one mediator in the study was necessitated by constraints within the existing literature. moreover, the cross-sectional nature of the study, dictated by the constraints of a shorter timeframe, may impact the ability to establish causal relationships and temporal dynamics. subsequent 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(huang & li, 2017; singh & elkassar, 2019) our organization is actively involved in the redesign and improvement of products or services in order to comply with existing environmental or regulatory requirements. our organization specializes in recycling practices to ensure that end-of-life products are recovered for reuse in new product manufacturing. our organization is rigorously involved in “eco-labeling” activities to make our clients conscious of our sustainable management practices. the research & development team at our organization ensures that the current technical advancement is included in the development of new eco-products. green self-efficacy (chen et al., 2015) we feel we can succeed in accomplishing environmental ideas; we can achieve most of environmental goals we feel competent to deal effectively with environmental tasks we can perform effectively on environmental missions. we can overcome environmental problems. we could find out creative solutions to environmental problems. green transformational leadership the leader of the green product development project inspires the project members with the environmental plans at our company. (chen & chang, 2013) the leader of the green product development project provides a clear environmental vision for the project members to follow at our company. the leader of the green product development project gets the project members to work together for the same environmental goals at our company. the leader of the green product development project encourages the project members to achieve the environmental goals at our company. the leader of the green product development project acts with considering environmental beliefs of the project members at our company. the leader of the green product development project stimulates the project members to think about green ideas at our company. green intellectual capital (proxy= green human capital) (chen, 2008) the productivity and contribution of environmental protection of the employees in the firm is better than those of its major competitors the employees’ competence of environmental protection in the firm is better than that of its major competitors the product or service qualities of environmental protection provided by the employees of the firm are better than those of its major competitors the cooperative degree of team work about environmental protection in the firm is more than that of its major competitors the managers can fully support their employees to achieve their jobs of environmental protection green empowerment (proxy= employee empowerment) (yu et al., 2011) i am allowed to be creative when ideal with environmental problems. i am allowed to do anything to do a high-quality sustainable job. i don’t need to get management approval before i handle environmental problems. i rely heavily on instructions and on the system. i can’t take charge of problems that require immediate attention. i feel competent to perform the green tasks required for my position my manager trusts me to make appropriate sustainable decisions in my job. i have considerable opportunity for interdependence and freedom in how i do my job. environmental performance (huang & li, 2017; vanalle et al., 2017) reduction of air emission. reduction of waste water. reduction of solid wastes. decrease of consumption for hazardous/harmful/toxic materials. improve[ments] in [the] companys environmental situation. agbioforum, 25(2): 61-71. ©2023 agbioforum investment in coffee farming based on community encouragement ni gst ag.gde eka martiningsih* faculty of agriculture and business, mahasaraswati university denpasar, bali, indonesia email:ekamartini@unmas.ac.id i ketut arnawa faculty of agriculture and business, mahasaraswati university denpasar, bali, indonesia email:arnawaiketut1962@gmail.com i made budiasa faculty of agriculture and business, mahasaraswati university denpasar, bali, indonesia email:mdbudiasa43@gmail.com *corresponding author: ni gst ag.gde eka martiningsih; email: ekamartini@unmas.ac.id the primary objective of the study conducted in the kintamani district of bali was to evaluate the economic viability and financial feasibility of engaging in arabica coffee cultivation. additionally, the research sought to investigate the possibility of leveraging arabica coffee production as a means to attract tourists to the region. a rigorous data analysis methodology was implemented, commencing with the identification of a sample of 100 farmers through the utilisation of a multistage sampling technique to guarantee inclusivity of the wider population. the assessment of profitability was conducted with a high degree of rigour, wherein the present value of both the benefits and costs related to arabica coffee farming were thoroughly compared. the assessment of financial feasibility involved the utilisation of key metrics, namely the net benefit cost ratio (net b/c), net present value (npv), and internal rate of return (irr). the metrics presented offer quantitative insights, indicating that returns on investment in arabica coffee farming become evident within the period spanning from the fourth to the thirtieth year. the net benefit-cost (b/c) ratio was calculated to be 4.443, indicating a favourable financial outcome for the venture. additionally, the venture exhibited a positive net present value (npv) of rp. 107,672,034 and an impressive internal rate of return (irr) of 35.06%. these findings confirm the financial viability of the project. the findings of this study indicate that a majority of the farmers surveyed (85%) expressed a favourable attitude towards the establishment and growth of coffee tourism destinations. these insights were obtained through the use of qualitative research methods, specifically in-depth interviews conducted with a sample size of five informants. this study offers essential insights for farmers and prospective investors pertaining to investment expenditures, economic feasibility, and profitability prospects in the cultivation of arabica coffee. furthermore, this highlights the potential opportunities for the development of ecotourism in the kintamani region of bangli, bali, thereby enhancing our comprehension of the local economic environment. keywords: arabica coffee, farming, investment, finance, profit, natural tourism introduction coffee is a prominent tropical commodity that is globally traded, accounting for approximately 50% of total tropical commodity exports. the global appeal and widespread popularity of this phenomenon can be attributed to its unique flavour profile, which is bolstered by a combination of historical, traditional, social, and economic influences. moreover, coffee functions as an inherent reservoir of caffeine, a compound recognised for its capacity to activate the brain, augment cognitive functions, and enhance memory. additionally, the association between the presence of chlorogenic acid in caffeine and a decreased susceptibility to diabetes and heart disease has been established. the global consumption of beverages derived from coffee bean extract is estimated to be approximately 2.25 billion cups per day, signifying a remarkable rate of consumption. according to the international coffee organisation (ico), in 2015, the estimated global demand for ground coffee was approximately 8.77 million metric tonnes (ico, 2015). coffee occupies a prominent position in the global market when viewed through an economic lens. examining the long-term profitability of coffee cultivation yields valuable insights regarding the economic sustainability of this agricultural practice. the financial aspects of arabica coffee farming are comprehensively assessed through the utilisation of economic theories pertaining to investment, cost-benefit analysis, and agricultural economics. based on the research conducted by amanda and rosiana (2023), indonesia's ranking as the fourth largest global coffee producer has been displaced to the fifth position as a result of a decline in coffee exports. however, colombia surpassed indonesia in this ranking, causing indonesia to drop to fourth place among the leading coffee-exporting countries globally. according to the director general of plantations at the ministry of agriculture in 2018, indonesia is now behind brazil, vietnam, and colombia. the decline in coffee production in indonesia has been attributed to climate change, resulting in unpredictable patterns of rainfall that have adversely impacted both coffee production and the well-being of farmers. the coffee production in indonesia in 2021 exhibited a notable surge, marking the highest output achieved in the past ten years (setyo andi et al., 2022). the total production volume amounted to 774.6 metric tonnes, reflecting a growth rate of 2.75% compared to the preceding year. the decline in coffee production in indonesia has been attributed to climate change, specifically the adverse effects of irregular rainfall patterns on both coffee cultivation and the wellbeing of farmers (sujatmiko & ihsaniyati, 2018).the lower productivity of coffee production in indonesia can be mailto:ekamartini@unmas.ac.id mailto:arnawaiketut1962@gmail.com mailto:mdbudiasa43@gmail.com mailto:ekamartini@unmas.ac.id agbioforum, 25(2), 2023 | 62 martiningsih, arnawa, budiasa — investment in coffee farming based on community encouragement attributed to the continued use of traditional coffee plantation techniques (baso & anindita, 2018). currently, the average yield of indonesian coffee stands at 0.552 metric tonnes per hectare, resulting in a total coffee production of 685,090 metric tonnes. the coffee plantation area in indonesia spans 1,241,710 hectares. in contrast, vietnam exhibits a coffee productivity rate of 2.175 metric tonnes per hectare, resulting in a cumulative production of 1,395,600 metric tonnes, encompassing a coffee plantation area spanning 641,700 hectares. bali is a prominent coffee-producing region in indonesia, renowned for its contributions to both the domestic and international markets, encompassing asia and europe. during the initial semester of 2016, bali generated a total of us$ 60,131.42 in foreign exchange through its coffee export endeavours. the quantity of coffee shipments experienced a notable surge of 146.22%, rising from 5.15 tonnes in the initial six months of 2015 to 12.68 tonnes in the corresponding period of 2016 (bali provincial office of industry and trade, 2016). bangli regency is renowned for having the largest coffee cultivation area, estimated at approximately 4,736 hectares, in comparison to other regencies. bangli regency, being the foremost producer of arabica coffee, experienced a marginal rise in production from 2,247 metric tonnes in 2019 to 2,249 metric tonnes in the subsequent year of 2020. the arabica coffee variety that is grown in a specific region has been granted geographical indication status and is officially recognised by the geographical indication protection society (gips). this particular variety is referred to as "kopi arabika kintamani bali" (ardana, 2019). the cultivation of arabica coffee is carried out by individuals who are affiliated with the subak organisation. based on the findings of a study conducted by winantara, bakar, and puspitaningsih (2014), it has been determined that investment in the cultivation of civet coffee in bali yields a profitable outcome. the study reveals that the internal rate of return stands at 21%, while the economic age is estimated to be 5 years. in a similar vein, rico, wan abbas, and umi (2014) conducted a study that showcases the economic viability of cultivating civet coffee in the region of west lampung, with positive outcomes observed at both the micro and macro levels. in a study conducted by wahyuni, utama, and mulyasari (2012), it was discovered that arabica coffee, with a projected lifespan of 10 years, demonstrates a net benefit-cost ratio (b/c ratio) of 2.17, a net present value (nvp) of rp. 18,847,733, and an internal rate of return (irr) of 26.60%. within the framework of market dynamics, coffee is susceptible to variations in worldwide demand and supply. the present study acknowledges the aforementioned market dynamics and proposes to incorporate theories from the field of international trade and market analysis. the objective is to investigate the potential impact of changes in the global coffee market on the long-term profitability of arabica coffee cultivation. arabica coffee also experiences notable annual growth in export demand, ranging from 20% to 25%, thereby establishing itself as a feasible and lucrative avenue for economic development. as per the findings of the indonesian plantation research and development centre, the arabica coffee species exhibits an economic lifespan spanning from 20 to 25 years, during which the coffee plants commence fruit production after a period of 4 to 5 years. nevertheless, there exists a specific timeframe in which the optimisation of coffee production may not be achieved, resulting in a decrease in yields as the coffee plants mature. this issue is further exacerbated by the substantial amount of investment capital needed, as evidenced by a study conducted by roidah (2013), which revealed that it amounts to idr 20,000,000 per hectare. the study's significance is derived from its capacity to provide valuable insights to a range of stakeholders. the main objective of this study is to evaluate the economic feasibility of investing in the cultivation of arabica coffee over a significant time frame of 30 years. the findings of this research are of great importance to potential investors, policymakers, and coffee farmers, as they provide essential information that can assist in making well-informed decisions. in addition, this study makes a valuable contribution to the ongoing scholarly conversation surrounding sustainable agriculture. specifically, it examines the enduring financial viability of coffee farming and its compatibility with environmental and social factors. the study highlights the significance of local economies and livelihoods by examining particular regions, such as bali and bangli regency. it provides valuable insights into the potential of coffee cultivation to drive regional development and generate income. furthermore, the research is in accordance with the principles of agricultural sustainability, which is a key area of interest in academic and policy circles. the analysis of long-term profitability in arabica coffee cultivation serves as a valuable contribution to the discourse surrounding sustainable agricultural practices. the research can draw upon theories pertaining to sustainable agriculture, trends in crop yield, and the enduring environmental consequences of coffee cultivation, thereby elucidating the interplay between economic considerations and environmental and social factors. the central research inquiry examined in this investigation pertains to the financial viability of engaging in the cultivation of arabica coffee throughout its 30-year economic lifespan. in accordance with the aforementioned inquiry, the research aims to achieve two primary objectives: (1) to examine the cash flow of benefits and costs by employing forecasting techniques throughout the economic lifespan, and (2) to evaluate the advantages associated with the development of arabica coffee farming over its entire economic existence, utilising investment criteria such as net present value (npv), net benefit cost ratio (net b/c), and internal rate of return (irr). the observed phenomenon in the context of investing in arabica coffee farming in bangli is characterised by a lack of comprehensive understanding among practitioners, particularly within the coffee farming community consisting of members affiliated with the subak organisation. historically, these agricultural communities have primarily operated as providers of raw materials, with agbioforum, 25(2), 2023 | 63 martiningsih, arnawa, budiasa — investment in coffee farming based on community encouragement limited participation in the process of making investment decisions. this study is motivated by the need to address a knowledge gap pertaining to the responses and expectations of the coffee farming community in bangli with regards to investment in arabica coffee cultivation. consequently, a thorough analysis is required to gain insights into this matter. literature review coffee is a widely cultivated plantation crop with a long history of cultivation and significant economic importance. approximately 70% of global coffee consumption is derived from the arabica coffee species, while the remaining 26% is attributed to robusta coffee. coffee originates from the african continent, specifically the elevated terrain of ethiopia. nevertheless, global recognition of coffee was only achieved subsequent to its cultivation beyond its original region of yemen in southern arabia, facilitated by arab merchants. the research conducted by gumulya and helmi (2017) shed light on the historical origins of coffee, revealing its initial cultivation in ethiopia and subsequent dissemination to global markets facilitated by arab traders. the historical context underscored the worldwide importance of coffee cultivation. the coffee fruit is composed of various components, specifically the outermost layer known as the excocarp, a flesh layer called the mesocarp, a mucus-like substance referred to as musilage, a thin protective skin known as the spermoderm, and the coffee beans themselves, also known as the endoscarp. the outermost layer of the fruit, known as the exocarp, initially appears green in young coffee cherries. as the cherries mature, this layer undergoes a colour transformation, progressing from green to yellow and ultimately turning red when fully ripe. when the fruit reaches ripeness, its flesh will exhibit a slimy texture and possess a mildly sweet taste. the endocarp, which comprises the inner layer of the skin, is characterised by its considerable toughness and is often referred to as horn skin. mubarok, suwasono, and palupi (2014) offered valuable insights by providing a description of the various constituents of the coffee fruit, which encompassed the horn skin, a resilient inner layer. this knowledge was specifically pertinent in comprehending coffee processing techniques, which is a crucial element for coffee farmers aiming to enhance their methodologies. the processing of coffee beans can be conducted using two distinct methods, specifically the wet method and the dry method. the dry processing method involves the direct exposure of coffee cherries to solar radiation for drying purposes. on the other hand, the wet processing method entails a series of sequential stages, resulting in the generation of various forms of waste, such as coffee skin (also known as coffee pulp), which can be repurposed as animal feed. the study by nadhiroh (2018) examined the production of byproducts like coffee skin as well as the two main methods of processing coffee, wet and dry. the waste management component is relevant to both the sustainability of the environment and the potential for supplementary revenue streams for coffee farmers. in general, the methodology utilised in this study incorporates historical research, archival analysis, literature review, and data analysis techniques to provide a comprehensive understanding of the historical origins of coffee and emphasise its global importance. the objective of this multifaceted approach is to offer a comprehensive and nuanced comprehension of the trajectory of coffee, starting from its origins in ethiopia and culminating in its status as a globally traded commodity. moreover, prior research studies play a crucial role by providing solid groundwork and offering indispensable contextual knowledge for the present investigation. the aforementioned studies provide valuable perspectives on the historical importance of coffee, its botanical attributes, and the techniques employed in its processing. these aspects hold great relevance in conducting a thorough examination of the economic viability of cultivating arabica coffee in bali for a span of 30 years. investment valuation the cultivation of arabica coffee can be classified as an agricultural enterprise. business investment activities are undertaken with the expectation of future outcomes or gains. the arabica coffee plantation development business entails deriving income from the sale of production, while the investment involved encompasses the costs incurred prior to obtaining these benefits. a project proposal is considered feasible or appropriate when the benefits derived from it outweigh the associated costs or sacrifices. typically, investment endeavours within the plantation industry exhibit a long-term nature. in this context, the evaluation of advantages necessitates the consideration of time. both receipts and expenses are quantified in monetary terms, thereby necessitating a common measure to determine their equivalence. in this regard, the concept of present value is commonly employed for such calculations. the concept of present value distinguishes the current worth of money from its future value. the act of determining the present value of a future cash flow is commonly referred to as discounting. the financial viability of an investment can be evaluated using various criteria. investments serve as indicators for measuring and comparing the merits of different projects. by employing investment criteria, it becomes possible to assess the profitability of a project (husnan & muhammad, 2000). there are three crucial measures that play a significant role in the evaluation of projects pertaining to discounting principles (kadariah & gray, 1978; vawda, moock, price gittinger, & patrinos, 2003). (1) net present value (npv) the net present value (npv) refers to the disparity in present value that arises from comparing the benefits and costs associated with a given project. similar to the net benefit/cost (net b/c) approach, the discount rate employed represents the opportunity cost of capital. the agbioforum, 25(2), 2023 | 64 martiningsih, arnawa, budiasa — investment in coffee farming based on community encouragement decision-making criterion entails accepting a project if its net present value is positive. the net present value (npv) is deemed to be zero, indicating that the project generates returns equivalent to the opportunity cost of capital. conversely, if the npv falls below zero, the project is deemed unfavourable and thus rejected. (2) net benefit-cost ratio (net b/c) when evaluating the project, it is essential to assess the present value of both its benefits and costs, and express this relationship as a ratio. the discount rate employed typically represents the ratio of capital's opportunity cost. the calculation of the net benefit-to-cost ratio (net b/c) involves the discounting of gross benefits and gross costs, which encompass investment costs, maintenance expenses, and operating costs associated with production. in the event that the net benefit/cost (net b/c) ratio exceeds one, the appropriate course of action would be to accept the project. conversely, if the net b/c ratio falls below one, it would be advisable to reject the project. (3) internal rate of return (irr) the term "internal rate of return" refers to a criterion that remains unaffected by external factors such as fluctuations in interest rates or inflation rates. the internal rate of return (irr) is a financial metric employed to determine the interest rate at which the present value of costs and benefits is equal. in order to optimise the economic evaluation of the project, it is desirable for the net benefitto-cost ratio (net b/c) to approach unity, the net present value (npv) to approach zero, and for the net benefit amount to be positive. the calculation of the internal rate of return (irr) typically involves a trial-and-error approach, as there is no readily available mathematical formula that can be employed for this purpose. initially, a specific interest rate is selected for the purpose of computing the net present value (npv). if the resulting npv is positive, subsequent attempts are made using a higher discount rate. conversely, if the npv is negative, subsequent attempts are made using a lower discount rate. this iterative process continues until an appropriate discount rate is determined. community role community serves as a form of social capital in the context of development. consequently, the involvement of the community becomes a crucial element in endeavours aimed at fostering self-reliance and facilitating the process of empowerment (adiyoso, 2018). the failure to prioritise community involvement in development initiatives serves as the initial catalyst for the ineffective implementation of empowerment strategies in supporting overall development efforts. the active involvement of the community is crucial in the process of development, and they should be regarded as active participants rather than passive recipients. it is imperative to promote the empowerment of communities in determining their own objectives for action and guiding their development autonomously and conscientiously (edelia & aslami, 2022). individuals are likely to experience a sense of belonging when they possess a clear comprehension of the objectives pertaining to development and empowerment (ife, 2016). the assessment of community involvement in a development activity is contingent upon the significance of the community's response to the development plan. this study provides novel perspectives on multiple significant aspects. the initial section of the paper presents an innovative investment framework for arabica coffee cultivation, which incorporates the use of surveys and interviews to thoroughly assess its economic viability. furthermore, in contrast to numerous studies that primarily examine immediate benefits, the present research investigates the extended financial viability of coffee cultivation spanning a duration of 30 years, thereby shedding light on its temporal dynamics. moreover, this approach adopts a community-centric perspective, taking into account the roles and expectations of local farmers and stakeholders rather than solely focusing on financial considerations. furthermore, the system acknowledges the ecological consequences, particularly in mountainous areas susceptible to landslides, underscoring the significance of implementing sustainable methodologies. the present study investigates the potential of coffee tourism as an innovative area of research that extends beyond conventional agricultural studies. it aims to identify novel approaches for enhancing local economies and advancing environmental sustainability within the context of coffee farming. collectively, these distinctive elements offer a comprehensive and invaluable viewpoint on the cultivation of arabica coffee. research methods location and time the study was carried out among coffee farmers cultivating arabica coffee in the villages of serahi, bantang, and sukawana, located in the kintamani district of the bangli regency. the study was conducted between the years 2020 and 2021. the selection of research locations was conducted using the purposive sampling method, taking into account the ongoing production of arabica coffee and its extensive years of cultivation. research framework when making the decision to invest in arabica coffee farming, it is essential to carefully evaluate the economic lifespan of the investment and analyse the associated benefits and costs. in order to predict the advantages, a quadratic equation was utilised, taking into account the notion that coffee production attains a peak level. in order to predict costs, a basic regression equation was employed, considering the expenses linked to the production process. arabica coffee farmers employ three investment criteria to evaluate the profitability of their business ventures, namely net present value (npv), internal rate of return (irr), and net benefit/cost ratio (net b/c/r). the investment framework for arabica coffee farming is illustrated in figure 1. agbioforum, 25(2), 2023 | 65 martiningsih, arnawa, budiasa — investment in coffee farming based on community encouragement source: researcher’s data figure 1: research framework population and sample the study population consisted of arabica coffee farmers who had cultivated arabica coffee plants between the years 2015/2016 and 2019/2020, with a division based on five distinct planting years. the sample was chosen utilising the multistage sampling technique, which entails the selection of the sample in a step-by-step manner, where each stage corresponds to a distinct subset of the population. a sample size of 100 participants was selected using the proportional random sampling technique, which was applied to each stratum of the population. table 1: number of respondent farmers in each sample village no village year of planting 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 amount 1 serahi 20 10 10 0 0 40 2 bantang 0 10 10 10 0 30 3 sukawan a 0 10 10 0 10 30 amount 20 30 30 10 10 100 data collection the study employed a comprehensive data collection methodology that incorporated a combination of quantitative and qualitative methods as its primary techniques. the structured surveys were meticulously developed to collect quantitative data pertaining to different facets of arabica coffee farming, such as production costs, revenue, and investment criteria. this development process involved a rigorous approach, which encompassed a thorough literature review and consultations with experts. subsequently, the surveys underwent pre-testing to ensure their clarity and effectiveness. in contrast, the study employed a qualitative approach to gather insights. in-depth interviews were conducted with a carefully selected sample of five informants. a structured interview guide made up of open-ended questions served as the interview's direction. the purpose of these interviews was to explore the potential of arabica coffee as a tourist attraction. prior to the main data collection, the interview guide was pilot-tested to ensure its effectiveness and make necessary refinements. the data collection process adhered to a methodical sequence, commencing with the identification of research locations through purposive sampling and subsequently selecting a representative sample of arabica coffee farmers via multistage sampling. the research endeavour was guided by ethical principles, which included important considerations such as obtaining informed consent, ensuring anonymity and confidentiality, promoting voluntary participation, and implementing rigorous data security measures. data analysis the present study employs the cash flow method to analyse the investment advantages associated with the development of arabica coffee farming enterprises. this method entails the assessment of both incoming revenues and outgoing expenses. 1) receipt current calculation (bt) revenue is obtained from the multiplication of dry coffee production with the selling price of dry coffee. the available production data is 5 times, this data is used to estimate production at the age of t year, using the quadratic equation, on the basis of the consideration that arabica coffee production has a maximum production. the quadratic equation used with the following formulation: yt = a + bt + ct2 yt is dry coffee production in year t, while a,b,c and c are the estimated parameters, t is time. 2) expenditure flow calculation (ct) expenditures refer to the expenses associated with investment and production activities. due to the limited availability of production cost data, it is utilised to estimate future production costs for a period of t years. this estimation is achieved through the application of a simple regression equation, formulated as follows: ct = a + by ct, is production cost in t year, y is production, while a,b are the estimated parameters 3) profit analysis of arabica farming investment the present study focuses on the analysis of investment returns utilising the cash flow method. specifically, this method involves examining the inflow and outflow of funds to achieve a balance in the value of money. this balance is achieved by multiplying the cash inflows (bt) and cash outflows (ct) by the discount factor, as indicated by the following formula: po = st (1 + i) t po is the present value of money, st, is the value of money in t year, i is the discount factor, t is the time. criteria for net benefit cost ratio (net b/c) profits from investment in arabica coffee development are analyzed using the net-benefit cost ratio criteria, with the formulation: net b/c=(∑_(t=1) ^n▒((bt-ct))/〖(1+i)〗^t )/(∑_(t=1)^n▒((ctbt))/〖(1+i)〗^t ) netb/c is the net benefit cost ratio, bt is the net benefit in year-t (rp), ct is the cost in year-t (rp), i is the prevailing interest rate, n is the economic age of arabica coffee, and t is year. agbioforum, 25(2), 2023 | 66 martiningsih, arnawa, budiasa — investment in coffee farming based on community encouragement criteria of net present value (npv) the net present value (npv) refers to the present value of the disparity between benefits and costs, considering a specific discount rate. the net present value (npv) metric demonstrates the favourable outcomes of benefits in relation to costs. npv = ∑_(t-1) ^n▒((bt-ct))/〖(1+i)〗^t the net present value (npv) represents the difference between the present value of net benefits (bt) and the present value of costs (ct) in a given year (t) for a specific economic age (n) of arabica coffee. the net benefit (bt) is measured in rp (indonesian rupiah), while the cost (ct) is also measured in rp. the prevailing interest rate (i) is a factor that influences the calculation of npv. if npv > 0, then arabica coffee farming is profitable, and if npv < 0, arabica coffee farming is unprofitable. criteria for internal rate of return (irr) the internal rate of return (irr) is a financial technique used to determine the interest rate at which the present value of all cash inflows from an investment in developing an arabica coffee farming business is equal to the cash outflows. this calculation is based on a specific formulation. irr= i_1 〖+ 〖npv〗^+/((〖npv〗^+-〖npv〗^( ))) (i_2-i_(1 ))〗^ the value denoted as i1 represents the initial discount rate required to achieve a positive net present value (npv), while i2 represents the subsequent discount rate needed to yield a negative npv. the profitability of the proposed investment in arabica coffee is determined by comparing its internal rate of return (irr) to the prevailing interest rate at the time of execution. if the irr exceeds the prevailing interest rate, the investment is deemed profitable. conversely, if the irr falls below the prevailing interest rate, the investment is considered unprofitable. research findings benefits of arabica coffee farming the average age of the arabica coffee plants cultivated by farmers starts at the age of 4. from the results of the regression calculation, the relationship between age and production is obtained by the equation of the production function estimator yt = 199.1019 + 73.1031 t*** – 2.4702 t2***tcount is significant at 1 % level real. table 2 shows that cultivated arabica coffee starts producing at the age of 4. the increase in production is not the same every year, as well as the increase in benefits. the increase in production and benefits increases, maximum at 15 years of age, product at 740 kg/ha and benefits of idr 48,100,000/ha. then at 16 years of age, production and benefits decrease until the economic age is 30 years. the average price of dry coffee/rice coffee in farmer level is idr 65,000/kg, arabica coffee production in kintamani is oriented to the export market, different from research ((a) (d) (b) π∗, n.d.) in kenya coffee production is oriented to the local market, in costa rica, the research results of babin (2020) many farmers left coffee farming because of low coffee prices. research by draeger (2002) many farmers left the agricultural industry, on the other hand coffee farmers rejoice because there is an increase in coffee prices. table2. benefits and relationship between plant age and arabica coffee production in kintamani district, bangli, bali coffee age (year) production* (kg/ha) benefit (rp/ha) 1 0 0 2 0 0 3 0 0 4 452 29380000 5 503 32695000 6 549 35685000 7 590 38350000 8 626 40690000 9 657 42705000 10 683 44395000 11 704 45760000 12 721 46865000 13 732 47580000 14 738 47970000 15 740 48100000 16 736 47840000 17 728 47320000 18 715 46475000 19 696 45240000 20 673 43745000 21 645 41925000 22 612 39780000 23 574 37310000 24 531 34515000 25 483 31395000 26 430 27950000 27 372 24180000 28 309 20085000 29 242 15730000 30 169 10985000 description: *) estimated from the equation of yt = 199.1019 + 73.1031 t – 2.4702 t2 cost of arabica coffee farming table 3 displays the investment and maintenance costs associated with arabica coffee farming. the initial year incurs investment and maintenance expenses totaling rp. 25,365,500/ha, encompassing costs related to seed procurement, protective trees, land preparation, hole digging, manure application, and expenditures associated with non-productive plants. the cumulative expenses incurred from the second to the third-year amount to rp. 6,517,110 per hectare. these costs encompass various components, such as the acquisition of fertilisers and pesticides, the depreciation of tools, land taxes, and labour wages. the costs associated with plant-related activities are initiated in the fourth year of production, totaling idr 6,596,708 per hectare. these expenses encompass various aspects, such as the maintenance of productive plants, harvesting, and processing. by employing regression analysis, we are able to establish a correlation between the costs associated with harvesting and processing and the level of production. consequently, we derive an estimated cost function, denoted as ct = 175.9730 + 0.1292 y ***. the t-statistic exhibits statistical significance at a confidence level of 1%. agbioforum, 25(2), 2023 | 67 martiningsih, arnawa, budiasa — investment in coffee farming based on community encouragement table 3: cost of arabica coffee farming in kintamani district, bangli, bali coffee age (year) maintenance and investment cost (rp/ha) processing and harvesting cost* (rp/ha) total cost (rp/ha) 1 25365500 0 25365500 2 6517110 0 6517110 3 6517110 0 6517110 4 6517110 79598 6596708 5 6517110 88579 6605689 6 6517110 96680 6613790 7 6517110 103900 6621010 8 6517110 110240 6627350 9 6517110 115699 6632809 10 6517110 120278 6637388 11 6517110 123976 6641086 12 6517110 126970 6644080 13 6517110 128907 6646017 14 6517110 129963 6647073 15 6517110 130316 6647426 16 6517110 129611 6646721 17 6517110 128202 6645312 18 6517110 125913 6643023 19 6517110 122567 6639677 20 6517110 118517 6635627 21 6517110 113586 6630696 22 6517110 107775 6624885 23 6517110 101083 6618193 24 6517110 93510 6610620 25 6517110 85057 6602167 26 6517110 75724 6592834 27 6517110 65510 6582620 28 6517110 54416 6571526 29 6517110 42617 6559727 30 6517110 29761 6546871 description: *) estimated from the equation of yt = 175.9730 + 0.1292 y the analysis of arabica farming investment profit the primary objective of the arabica coffee farming industry's development is to enhance the financial earnings of small-scale farmers. in accordance with previous studies conducted by duaja, kartika, and johannes (2020) and sunanto, salim, and rauf (2019), it is imperative to provide support and resources to farmers in order to enhance their capabilities and improve the overall productivity of coffee cultivation. examining the financial perspective, particularly the benefits received by farmers as the main actors in the implementation process, is essential in order to evaluate the benefits of investment. the findings of the present value analysis pertaining to the benefits and costs associated with arabica coffee farming over a 30-year economic lifespan are depicted in figure 2 below. source: researcher’s data figure 2: the ratio of present value benefit and cost arabica coffee farming in figure 2, it can be observed that the initial year's investment has a present value of idr 22,056,957. however, the present value of benefits from the first to the third year is nonexistent (zero) due to the absence of coffee production and profitability in coffee farming. this is evident from the overlapping present value curve of costs on the benefit curve. the emergence of benefits, with a present value of idr 16,113,894, begins in the fourth year when coffee production commences and coffee farming becomes profitable. this is indicated by the benefit value curve surpassing the present value curve of costs. as the coffee plants age, there is a tendency for the earned profit to decline. eventually, at 30 years of age, the coffee plants need to be rejuvenated due to the low profit of only rp 131,535. this is illustrated in figure 2 by the present benefit value curve intersecting with the already tight costs. discussions financial feasibility analysis the purpose of conducting this financial feasibility analysis was to determine the profitability of arabica coffee farming. this analysis is based on the following assumptions: (1) the projected lifespan of the project is 30 years, (2) the interest rate (discount rate) is 15% per annum, (3) the production of arabica coffee aligns with the projected coffee production, and (4) the production costs adhere to the projected cost of coffee farming. the outcomes of the financial analysis computations are presented in table 4. table 4: the results of the feasibility analysis of arabica coffee farming in kintamani district, bangli bali criteria value feasibility indicator result npv rp. 107.672.034 npv > 0 proper net b/c 4,443 net b/c > 1 proper irr 35,05 irr > df proper note: df = discount factor 1) net present value the findings of the net present value (npv) analysis indicate that the current value of the net benefits acquired over the duration of the business period amounts to idr 107,672,034 (where npv > 0). the npv value indicates the profitability of the arabica coffee farming business, with an average annual net profit of idr 8,972,670. according to the net present value (npv) investment criterion, this business demonstrates feasibility as it exhibits profitability. this study aligns with the research conducted by rico, wan abbas, and umi (2014), wahyuni, utama, and mulyasari (2012), and winantara, bakar, and puspitaningsih (2014) on the financial viability of civet coffee production in bali, west lampung, and south sulawesi. the analysis primarily focuses on assessing the profitability of the venture through the net present value (npv) analysis. 2) net benefit-cost ratio (net b/c) the net benefit-cost ratio (net b/c) represents the relationship between the net profits that accrue as a result of positive impacts on the business and the net profits that arise from negative impacts on the business. the net benefit/cost (b/c) ratio of 4.444 suggests that investing in the utilisation of costs in arabica coffee farming is highly efficient. this means that an investment of idr 1,000 will yield a return of idr 4,444. the net b/c value exceeds one, indicating that investing in arabica coffee farming yields benefits that outweigh the associated costs. this agbioforum, 25(2), 2023 | 68 martiningsih, arnawa, budiasa — investment in coffee farming based on community encouragement implies that investing in arabica coffee farming is a profitable endeavour (rico, wan abbas, & umi, 2014; wahyuni, utama, & mulyasari, 2012; winantara, bakar, & puspitaningsih, 2014). this study examines the financial viability of civet coffee production in bali, west lampung, and south sulawesi. the analysis focuses on the profitability of the venture, as indicated by the net benefitcost (net b/c) ratio (rusadi & paramarta, 2023). 3) internal rate of return (irr) the purpose of conducting an internal rate of return (irr) analysis is to assess the profitability potential of investing in arabica coffee farming. the internal rate of return (irr) quantifies the interest rate derived from investments in arabica coffee farming, expressed as a percentage. the assessment of feasibility criteria involves a comparison between the internal rate of return (irr) value and the prevailing interest rate. according to the findings of the analysis, the internal rate of return (irr) was determined to be 35.05 percent. this indicates that the internal interest rate of return for arabica coffee farming in relation to the initial investment was 35.05 percent. the internal rate of return (irr) obtained exceeded the utilised interest rate of 15%, indicating that arabica coffee farming was both profitable and viable for cultivation. this study generally agrees with earlier research on the financial viability of civet coffee in bali, west lampung, and south sulawesi by rico, wan abbas, and umi (2014), wahyuni, utama, and mulyasari (2012), and winantara, bakar, and puspitaningsih (2014). this alignment is evident in the analysis of the project's profitability, as indicated by the positive net present value (npv), favourable net benefit-cost ratio (net b/c), and satisfactory internal rate of return (irr). the research findings presented in this study offer significant insights for coffee farmers and potential investors, shedding light on the practical viability of arabica coffee farming as a financially lucrative and environmentally sustainable enterprise. the findings of the study emphasise that arabica coffee cultivation is not solely an agricultural endeavour but rather a dynamic and economically sustainable enterprise that is closely connected to the wider context of coffee production in the region. the cultivation of arabica coffee holds great significance as it has the potential to enhance the financial well-being and livelihoods of local farmers while also exerting a substantial influence on the broader economic dynamics of the region. as it progresses, this coffee enterprise emerges as a symbol of economic stability and advancement, yielding consistent financial gains for farmers and enhancing the regional economy. this study provides further evidence to support the notion that arabica coffee serves not only as an agricultural product but also as a means of generating sustainable income, promoting environmental stewardship, and fostering community development. these interconnected aspects are integral to the overall economic landscape of the region. apart from the economic advantages derived from investing in arabica coffee cultivation, there are additional benefits that arise. these include the augmentation of plantation commodity exports, the cultivation orientation of farmers towards arabica coffee for the purpose of the export market, and the preservation of nature to mitigate the occurrence of landslides in the hilly and landslide-prone kintamani district area. the coffee farming industry contributes significantly to the local community's economy by generating employment opportunities and absorbing a substantial amount of labour. the implications of the findings of this study have significant relevance for arabica coffee farming and its impact on the local economy in the real world. the study places significant importance on the enduring profitability of coffee cultivation, extending for a period of more than three decades. this focus is congruent with the practical aspirations of coffee producers in areas such as kintamani. farmers, who frequently work with constrained resources, demonstrate a strong desire to ensure that their investments generate sustainable returns over prolonged durations. the financial viability of arabica coffee farming is indicated by the positive net present value (npv) and net benefit-cost ratio (net b/c). this empirical observation serves as a catalyst for both established farmers and prospective investors to contemplate coffee cultivation as a financially lucrative pursuit. these insights have the potential to enhance engagement in arabica coffee cultivation, thereby strengthening the domestic sector and making a positive contribution to economic stability. the possibility of coffee farming yielding significant returns on investment is indicated by the internal rate of return (irr) surpassing the current interest rate. this observation implies that arabica coffee cultivation has the potential to yield better returns compared to other investment alternatives in practical contexts, thereby attracting financial resources and promoting economic development. moreover, the study's recognition of the environmental factors in mountainous regions susceptible to landslides aligns with the practical difficulties faced by the local area. the implementation of sustainable coffee farming practices not only yields enduring economic advantages but also functions as a protective measure against the deterioration of the environment. this is consistent with the community's imperative for ecological conservation, especially in regions where coffee cultivation takes place. the investigation conducted in this study regarding coffee tourism as a supplementary revenue stream for the community aligns with the overarching pattern of economic diversification observed in rural areas. coffee tourism has the potential to positively impact local revenue streams, facilitate cultural exchange, and generate novel employment prospects. in actuality, this has the potential to uplift the entire community and enhance the attractiveness of coffee farming as a multifaceted enterprise. community role in order to ensure a successful development, it is imperative to consider the perspectives, opinions, and expectations of farmers with regards to investing in arabica coffee farming. therefore, this study incorporates the use of the nvivo r1 application to analyse data, specifically focusing on the predetermined informants' expectations. the initial step in the analysis process involves inputting a data file that comprises information records obtained from informants. the coding process was subsequently conducted by utilising agbioforum, 25(2), 2023 | 69 martiningsih, arnawa, budiasa — investment in coffee farming based on community encouragement nodes and cases, as indicated by the data provided by the informant. nodes refer to the practice of categorising or coding information based on the semantic relationships between phrases or sentences, whereas cases serve the purpose of classifying individuals providing information. the nodes examined in this study encompass various expressions pertaining to informants' expectations. these expressions have been categorised into five distinct child nodes, namely capital facilities, market certainty, good management, involvement in training, and enhancing the quality of community resources (see figure 3). source: researcher’s data figure 3: the community role for coffee investment based on the results of the processed visualization of coding data and cases, it can be concluded as follows: 1. child nodes capital facilities are the hope of the department of agriculture [agricultural extension] and coffee farmers. community involvement including local farmers is given more attention and priority so that they can compete if there are large investors who enter and involve local communities for all tourism activities. 2. child node integration and training is the hope of the tourism office, tourists, youth leaders, and community leaders. integration includes connecting various locations [views] and attractions around the coffee tourism area (itamar, alam, & rahmatullah, 2014). integration is important to create diverse new activities and avoid development stagnation. this can be started by identifying products and attractions that are mutually supportive and related, then a tourist itinerary is made in one travel package. 3. child nodes involving in training is the hope of the tourism office, youth leaders, community leaders, and tourists. quality improvement includes services to tourists, tourism knowledge, and training related to tourism activities and coffee plantation management. 4. child nodes the facilities are the hope of visitors, tour guides, tourists, travel agents, and farming communities. facilities include adding and improving the quality of facilities to support tourist activities 5. child nodes management is the hope of community leaders, tourists, and travel agents. good management includes maintaining security, creating visitor comfort, and being able to manage tourism activities efficiently. conclusions based on the findings and subsequent deliberation, it can be deduced that the initial investment required for arabica coffee cultivation in the first-year totals rp. 25,365,500 per hectare. production begins in the fourth year, with the peak level of production being reached in the fifteenth year, resulting in a total output of 740 kilogrammes of dry bean coffee. the period of coffee farming profitability occurs between the fourth and thirtieth years, requiring the rejuvenation of coffee plants. the financial feasibility of efficiently utilising expenses is evident through a net benefit-to-cost ratio of 4.443, a net present value (npv) of idr 107,672,034, or an annual net profit of idr 8,972,670 per hectare. the investment demonstrates the potential to generate profits, as evidenced by an internal rate of return (irr) of 35.05%. based on the examination of the three investment criteria, it can be inferred that the cultivation of arabica coffee demonstrates both viability and profitability. the active involvement of the coffee farming community, government support, the participation of community leaders, and a shared commitment to sustainability are essential for the establishment and development of coffee tourism destinations. agbioforum, 25(2), 2023 | 70 martiningsih, arnawa, budiasa — investment in coffee farming based on community encouragement the findings of the study conducted in kintamani regarding arabica coffee cultivation reveal that one of the key factors influencing the preference for arabica coffee over robusta coffee as the primary focus of coffee farming in bali is its capacity to generate a net profit of rp. 8,972,670 per hectare, accompanied by an internal rate of return (irr) value of 35.05%. consequently, the investment in arabica coffee yields significant profitability. an additional factor to consider is the broader international consumer base of arabica coffee, which enhances its competitiveness within the global market. the potential for enhancing product value and expanding business opportunities is significant in the realm of coffee tourism destination development. the promotion of arabica coffee cultivation is imperative due to its advantageous financial viability and profitability. it is imperative for local and regional agricultural agencies to proactively endorse the cultivation of arabica coffee by providing comprehensive assistance such as training programmes, high-quality planting materials, and financial incentives. this support is crucial in order to stimulate the growth and expansion of arabica coffee production. it is recommended that financial institutions and government entities offer readily available loans in order to alleviate the burden of initial investment expenses. the promotion of sustainable practices, particularly those that prioritise environmentally friendly farming methods, is of utmost importance. the establishment of collaborative partnerships between local governments and coffee farming communities has the potential to foster the development of coffee tourism destinations, thereby facilitating the diversification of income streams. additional areas of research that could be explored encompass the examination of the long-term viability of arabica coffee farming, the analysis of consumer preferences in relation to this particular variety of coffee, and the exploration of global market trends pertaining to arabica coffee production. furthermore, conducting an evaluation of the wider economic implications associated with coffee cultivation in the region, exploring the potential of coffee tourism, and undertaking a comparative examination of arabica and robusta coffee farming can provide valuable insights for both farmers and policymakers. these insights can contribute to the advancement and long-term viability of the coffee industry. it is advisable, from a practical standpoint, for local agricultural agencies to assume an active role in the promotion of arabica coffee cultivation. this involves the provision of training programmes aimed at equipping farmers with the requisite knowledge and skills, facilitating access to high-quality planting materials, and providing financial incentives to promote wider engagement. additionally, it is recommended that financial institutions and government entities take into account the customization of loans and credit facilities to cater to the unique requirements of coffee farmers. this approach would effectively reduce the financial obstacles faced by these farmers and consequently encourage greater investment in the coffee industry. promoting sustainable farming practices is of utmost importance. it is imperative to provide farmers with education regarding environmentally sustainable practices in order to safeguard the long-term sustainability of coffee plantations and mitigate any potential negative ecological consequences. in conclusion, the exploration of coffee tourism destinations holds significant promise, and the establishment of cooperative initiatives involving governmental bodies, farmers, and local enterprises can contribute to the creation of captivating and culturally immersive coffee tourism encounters, thereby generating supplementary economic benefits for the community. in terms of policy, it is crucial for policymakers to develop regulations that facilitate the expansion of the coffee farming sector. this entails the development of policies that promote sustainable agricultural practices and prioritise the welfare of local farmers. furthermore, it is imperative to make investments in rural infrastructure, including the development of road networks and processing facilities, in order to effectively facilitate the transportation of coffee products and optimise the overall efficiency of the supply chain. regarding the pursuit of additional research, there are numerous prospective avenues that warrant exploration. a thorough evaluation of the sustainability of arabica coffee cultivation, encompassing its ecological, societal, and financial ramifications, would offer a more comprehensive and well-rounded viewpoint. examining the dynamic shifts in consumer preferences and market trends for arabica coffee at a global level can provide significant insights for farmers and exporters seeking to adjust their strategies in response to evolving demand. a comprehensive examination of the economic and environmental aspects of arabica and robusta coffee cultivation can provide valuable insights for farmers in making well-informed choices regarding diversification. in conclusion, conducting further research to evaluate the wider economic ramifications of coffee cultivation in the region, encompassing factors such as employment generation and income distribution, can provide additional clarity regarding its contribution to local development. limitations the present study acknowledges several inherent limitations. initially, the study's scope was limited to a specific geographic region and a comparatively small sample size, thereby constraining the generalizability of its findings to larger populations or broader regions. additionally, the study incorporated certain assumptions, such as the presence of fixed interest rates, which may not fully capture the intricacies of real-world financial markets. furthermore, the analysis failed to thoroughly explore the environmental consequences or intricate elements of community involvement in sustainable finance. a careful consideration of the study's temporal context and external variables is also required. although this study provides valuable insights, caution should be exercised when attempting to extrapolate its findings to different contexts or over an extended period. future research efforts should aim to address these limitations in order to cultivate a more nuanced and comprehensive comprehension of the subject matter. agbioforum, 25(2), 2023 | 71 martiningsih, arnawa, budiasa — investment in coffee farming based on community encouragement references adiyoso, w. 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agriculture growth; forest cover; economic development; fmols; dols; canonical cointegration regression. 1. introduction economic development refers to an economy's profound structural transformation. economic development transforms low-income and basic economies into industrialized, modern economies. it is the process of augmenting people's living standards, independence, and self-esteem to improve their quality and capabilities (akram, siddiqui, nawaz, ghauri, & cheema, 2011; todaro & smith, 2020). in contrast, economic growth is defined as the long-term expansion of an economy's productive capacity required to meet the requirements of its citizens. the sustainable economic growth of a country is a prerequisite for economic development because it positively impacts the employment rate and the national income, thereby raising the living standards of the community (bhatti & nawaz, 2020; mohamed, liu, & nie, 2021). significant factors, such as government expenditures, population, education, health, institutions, human capital, and natural resources, are cited in the literature as influencing economic development. the significance of natural resource capital for economic development has been consistently acknowledged over the years, and forest capital's positive impact on economic growth in any economy has been extensively documented. forests are one of the most significant natural resources present in every nation. forestcovered regions provide the region for resource extraction, tree harvesting, and wildlife hunting (chien, kamran, et al., 2022; oyetunji, 2019; shah, hussain, nawaz, & iqbal, 2021). however, it remains unclear what role forest cover plays in the growth of an economy. regarding option value, direct use value, positive externality, existence value, etc., forest resources contribute considerably to economic value (chien, pantamee, et al., 2021; pak, türker, & öztürk, 2010). the more forest areas and resources an economy has, the more productive its forestry sector and the greater the income generated from the extraction of precious and non-precious wood (chien, sadiq, et al., 2021; zhang, tang, & boamah, 2022). in addition, forest cover positively affects economic growth by increasing labor employment and income (li, mei, & linhares-juvenal, 2019). in addition, oil extraction, forest resource, and mineral resource rents substantially contribute to economic expansion. forest resources are also closely associated with a reduction in destitution. forests and tree systems sustain levels of welfare by primarily assisting households to increase their income and meeting their requirements in terms of food, health, and humanistic values (chien, hsu, zhang, vu, & nawaz, 2022; xiang et al., 2021; zhang et al., 2022). however, forests also have some negative consequences on economic development. forest cover and resources are associated with the resource curse hypothesis predominantly due to the inefficiency of the forestry industry, which results in unexpected industrial benefits (liu, yao, & liu, 2015). the dutch disease is also associated with forest resources. the primary source of revenue for regions with abundant forest resources is the export of forest products. however, when international trade conditions are unfavorable, exporting countries may experience a significant decline in income. the finite supply of natural resources must also be considered, policies must be devised, and natural resource rents must be utilized to stimulate the economy and enhance the business climate (hanif, bakar, & nawaz, 2022; zhang et al., 2022). mailto:hothihien@naue.edu.vn mailto:minhnguyetfuv@gmail.com mailto:nguyensonghua@gmail.com mailto:daothutra@hdu.edu.vn mailto:nctiep@vnua.edu.vn mailto:vanha280182@gmail.com mailto:minhnguyetfuv@gmail.com agbioforum, 25(1), 2023 | 88 hien et al. — the role of agriculture growth, technological innovation, and forest cover toward economic development: evidence from vietnam similarly, no one can refute that agriculture plays a preeminent and crucial role in sustaining economic growth. its importance in the economic development of industrialized countries has been widely acknowledged, and it also plays an essential role in the development of developing nations. in other words, agriculture or other primary industries are prioritized in economies with limited income. it is argued that agriculture is the economy's backbone by providing basic ingredients and raw materials for industry and humanity. this sector creates jobs, provides raw materials to industry, ensures agricultural security, and generates foreign exchange (hanif, nawaz, fazal, & ibraheem, 2022; van huong et al., 2022). agriculture is the source of food for all countries in the globe. the agriculture sector's contribution to increasing food supply is essential for a nation's economic growth. additionally, agriculture plays a significant function in the capital formation of countries. the agriculture sector is also a source of employment and income for rural households, and as agriculture grows, so does the income of rural households, leading to an increase in demand and a rapid acceleration of industrialization. economic growth is impossible without expanding the agricultural sector (hussain, bhatti, nawaz, & ahmad, 2019; praburaj, design, & nadu, 2018). in the same context, technological innovation is also a significant factor in economic growth. innovation is "any activity that aims to create new or improved goods (including services), marketing methods, processes, or business organizations." it is defined as "the thriving exploitation of novel ideas" that includes technological, scientific, organizational, and financial activities that lead to new product and service provision (jianjun et al., 2021; mohamed, liu, & nie, 2022). innovation encompasses institutional, theoretical, technological, ecological, and cultural innovation. in a contemporary economy, technological innovations are essential for economic growth, value creation, and employment at the regional, national, and enterprise levels. through market value and productivity, technological innovation promotes the development of society and industry, and it is also essential for avoiding economic recession (wusiman & ndzembanteh, 2020). innovations also result in the formation of new businesses and enhance the competitiveness of existing businesses. importantly, it assists a nation in attaining its goals by increasing output by enhancing input productivity, which can only be accomplished by inventing new products or industrial processes. therefore, innovation significantly contributes to a nation's long-term productivity and consistent economic growth (khan & nawaz, 2010; washima, 2019). considering the abovementioned arguments, this study aims to investigate the impact of technological innovations, agricultural growth, and forest cover on vietnam's economic development from 1990 to 2020. vietnam is a fascinating case study because it is one of southeast asia's lowermiddle-income countries and is considered one of the world's emergent nations. vietnam ranks 23rd and 36th in purchasing power parity and nominal gross domestic product, respectively. vietnam's gdp amounted to $369.494 billion in 2019, but its development rate is not constant and fluctuates significantly over time. agriculture, services, and industry are vietnam's three primary economic sectors (mirza, abbas, & nawaz, 2020). the agriculture sector accounts for 15.3% of the annual gdp. about 38.6% of the workforce is employed in the agricultural sector. however, agriculture's status as the most significant industry is diminishing. in vietnam, the services and manufacturing sectors produce more than agriculture. however, agriculture continues to supply industries and export sectors with basic materials. vietnam's primary agricultural products include rice, coffee, maize, tea petals, pepper, cassava, sweet potato, and cashew nut. as a result, vietnam still holds the top position among agricultural nations (linh et al., 2019; mohsin, kamran, nawaz, hussain, & dahri, 2021). about two-thirds of vietnam's total geographical area is covered by forests. however, the forest cover continuously decreases due to a swiftly expanding population illegally clearing forests for agriculture. approximately 24 million people reside near or in forests and rely on these resources for their subsistence, leading to wood exploitation. forest assets are essential for both people's livelihoods and the country's economic development, but excessive exploitation of forest resources may be one of the reasons for the country's economic stagnation (luong, 2014; nawab, bhatti, & nawaz, 2021). moreover, if the economic growth rate is inconsistent, it is imperative to improve domestic innovative capabilities to increase economic development. figure 1 demonstrates that, thankfully, the vietnamese government is adopting initiatives to increase technological innovation. figure 1: loss in forest cover area from 2002 to 2023 in vietnam source: global forest watch (2023) agbioforum, 25(1), 2023 | 89 hien et al. — the role of agriculture growth, technological innovation, and forest cover toward economic development: evidence from vietnam figure 2: technological innovations in vietnam from 1990 to 2020 period. source: wdi (2023) by empirically estimating the role of forest cover, technological innovations, and agriculture growth, this study makes the following contributions to the body of knowledge: first, despite numerous studies on the role of technological innovations, forest cover, and agriculture growth in economic growth or development, the number of studies analyzing the role of these factors in vietnam's economic development is nearly nonexistent. second, to our knowledge, these nexuses have never been empirically evaluated using ccr, fmols, or dols estimations. the findings of this research can be effectively utilized by policymakers in vietnam and other developing nations to address economic development issues. the remainder of the investigation is organized as follows: the second section examines existing research. the third section provides data and employs estimation techniques. the fourth section includes results and discussions. the fifth section concludes with policy recommendations. 2. existing literature to create a thorough and comprehensible review, we divide the literature into three distinct strands: the first section examines the relationship between forest cover and economic growth. the second thread examines the literature on technological innovations and economic development, while the third examines the connection between agriculture and economic development. 2.1 forest cover and economic development / economic growth numerous studies on the relationship between forest cover and economic growth or development have been published, but they do not provide sufficient evidence for a conclusion. some researchers believe that abundant forest resources will aid economic development, whereas others argue that forestation can result in economic instability. for example, oyetunji (2019) analyzed the function of forests in nigeria's economic development from 1990 to 2015. the study utilized the ardl estimation method, which revealed forests' positive and insignificant function in economic development. naidoo (2004) estimated the impact of forests on economic growth in seventy nations. regression analysis revealed a negative relationship between forests and economic growth, as countries with a high forestation rate had a low economic growth rate, whereas countries with a high deforestation rate had a higher economic growth rate. likewise, xie, irfan, razzaq, and dagar (2022) estimated the impact of forest and mineral resource volatility on economic performance. using arch, tarch, and earch approaches for empirical estimations, the study demonstrated the unidirectional causality between mineral and forest resources and economic performance, demonstrating that forests and mineral resources contributed positively to economic performance. similarly, zhang et al. (2022) also estimated the relationship between forest resources and economic development in the yangtze river delta from 2007 to 2019. using a spatial econometric approach, it was discovered that forest resources had a ushaped relationship with economic development, i.e., forest resources generated benefits for regional economic development. hernawati (2010) examined the relationship between deforestation and household incomes in indonesia using primary data from 1998 to 2004. a spatial econometric estimation method discovered a u-shaped non-linear relationship between deforestation and household incomes. initially, as deforestation increased, household income decreased, but after a certain threshold was crossed, household income began to rise, and deforestation increased. in the case of vietnam, tru (2018) analyzed the key determinants of economic development, such as the added value of agriculture and the forest and fishery sectors. the results of the ardl method indicated that the forest and fishery sectors and the value added to agriculture had a significant positive impact on vietnam's economic growth. hence, we formulate the first hypothesis of the study as follows: h1: forest cover has a significant impact on economic development in vietnam. 2.2 technology innovations and economic development / economic growth second, the literature is replete with studies on the relationship between technological innovation and economic growth. in the current era of globalization, 0 200 400 600 800 1000 1200 n u m b e r o f p a te n ts years technological innovations technological innovations agbioforum, 25(1), 2023 | 90 hien et al. — the role of agriculture growth, technological innovation, and forest cover toward economic development: evidence from vietnam differences in technological innovation between nations characterize disparities in income inequality and economic growth. technological and scientific innovations enable businesses and individuals to use technology more effectively, reducing costs and increasing production (mohamed et al., 2021; nawaz, hussain, & hussain, 2021). among the studies examining the relationship between technological innovation and economic growth or economic development, adak (2015) estimated the impact of technological innovations on turkey's economic growth. the study's ols estimation method revealed the positive impact of technological innovation on turkey's economic growth. mohamed et al. (2022) estimated the relationship between technological innovation and economic development using a panel of developing nations from 1990 to 2018. the authors estimated using the ecm method. the study revealed long-term and shortterm positive effects of technological innovation on economic growth. furthermore, bidirectional causality was found between technology innovations and economic development in the long run, whereas short-run causality ran from technology innovations to economic development. mohamed et al. (2021) analyzed the impact of innovations and foreign direct investment on egypt's economic development from 1990 to 2019. using the ardl co-integration method, the study determined that technological advancements harmed economic growth. using panel data from 19 european countries, maradana et al. (2017) analyzed the relationship between innovations and economic growth from 1989 to 2014. granger causality analysis revealed a bidirectional and unidirectional causal association between various innovations and economic growth indicators. pece, simona, and salisteanu (2015) estimated the effect of technological innovations on economic growth in central and eastern european countries from 2000 to 2013. using regression analysis, the findings indicated that innovations contribute positively to economic development. in pakistan, saeed and awan (2020) analyzed the impact of technological advances on the country's economic growth as measured by r&d and innovation. the authors used the ardl estimation method, which revealed the positive impact of research, development, and innovation on pakistan's economic growth. thus, we formulate the second hypothesis of the study: there is a significant impact of technological innovations on economic development. 2.3 agriculture growth and economic development similar to the relationship between forest cover and economic growth and development, the relationship between agriculture and economic growth and development remains controversial, particularly in developing nations that rely heavily on the agriculture sector for their economic sustenance (nawaz et al., 2021; runganga & mhaka, 2021). awan and aslam (2015) analyzed the impact of agricultural productivity on pakistan's economic development from 1972 to 2012. the ardl co-integration method was used to determine long and short-term estimates. it was discovered that agricultural expansion contributed positively to economic expansion. ansari and jadaun (2022) estimated the relationship between agricultural growth and economic development in india from 1991 to 2020. the ardl estimation method was also utilized in the study to demonstrate the positive impact of agricultural productivity in india. runganga and mhaka (2021) examined the role of the agricultural growth-economic growth relationship from 1970 to 2018 using data from zimbabwe. the ardl estimation method indicated a positive influence of agriculture productivity on growth in the short run, but no significant impact was observed in the long run. in continuation, chaudhary and mishra (2021) investigated the relationship between economic growth and agriculture in nepal. the findings disclosed that the agriculture sector's contribution to economic development has diminished. izuchukwu (2011) investigated the relationship between agriculture and economic development in thailand from 1961 to 2009. using ols and granger causality techniques, the authors determined that agriculture positively influenced the country's economic development. in thailand, there was also a bidirectional causal relationship between them. thus, the third hypothesis of the study is formulated as follows: h3: agricultural growth has a significant effect on economic development in vietnam. 2.4 research gaps the comprehensive evaluation of the prior literature revealed several significant gaps that require the attention of researchers. first, despite extensive literature on the relationships between agriculture growth, forest cover, technological innovations, and economic development, the empirical estimation of these relationships in vietnam has been neglected. to the best of our knowledge, except for tru (2018), no study has ever explored the relationship between agricultural growth, forest sector growth, and economic growth in vietnam. in addition, the significance of technological innovations in vietnam's economic growth has never been studied. second, the earlier time series studies, such as tru (2018), have utilized ardl bound testing extensively for empirical analysis. again, to our knowledge, previous researchers have never examined the impact of the abovementioned variables on economic development using the fmols, dols, and canonical regression methods. therefore, the current study seeks to fill in these research gaps and contributes significantly to the literature regarding vietnam's economic development. 3. data and methodology the study's primary aim is to analyze the effect of technological innovations, agricultural growth, and forest cover on economic development in vietnam from 1990 to 2020. for this purpose, the study considers gdp per capita as the measurement of economic development following agbioforum, 25(1), 2023 | 91 hien et al. — the role of agriculture growth, technological innovation, and forest cover toward economic development: evidence from vietnam (su, li, tao, & lobonţ, 2019). the model for empirical assessment is specified as follows: ed= f (tinov, agr, fcov) (1) while its econometric form is given as: 𝐸𝐷𝑡 = 𝛽0 + 𝛽1𝑇𝐼𝑁𝑂𝑉𝑡 + 𝛽2𝐴𝐺𝑅𝑡 + 𝛽3𝐹𝐶𝑂𝑉𝑡 + 𝜇𝑡 (2) where tinov denotes technological innovations, agr shows agriculture growth, and fcov shows forest cover. t denotes the time subscript, and μ shows the disturbance term. the measurement and their data sources of variables are provided in table 1 below. table 1: operational definitions of study variables and their data source variables measurement data source economic development gdp per capita constant (2015 us$) wdi technological innovations number of patents, residents wdi agriculture growth agriculture value added (% of gdp) wdi forest cover forest area (square km) wdi wdi= world development indicator 3.1 estimation techniques unit root test applying criteria for stationarity or unit roots is the first step in empirical analysis. unit root or stationarity tests disclose the order of variables' integration. before applying the chosen estimation methods, all study variables must be integrated in order 1, i.e., i(1). the order of integration of 1 is also required for co-integration and estimation of long-run coefficients. also, the fmols, dols, and ccr methods require that none of the series be integrated in order 2. to apply fmols, dols, and ccr regressions, it is necessary to determine that all series have an integration order of 1 and that no series has an integration order of 2. for this purpose, the current study employs the adf test, which implies that all series are ar (1) processes. fmols and dols estimations the present analysis uses three distinct estimation approaches to calculate long-run coefficient estimates. among these techniques are the ccr by park (1992) and fmols and dols by pedroni (2001). the fmols and dols methods employ parametric and nonparametric methodologies, respectively. in addition, they are dependable estimators for long-term evaluation due to their enhanced capacity to resolve serial correlation and endogeneity issues. certain adjustments are made to the traditional ols estimator to develop the fmols estimator, which enables the fmols estimation method to assess the co-integration relationship. it generates the same problems of endogeneity and serial correlation as the conventional ols method and is incapable of addressing them. regarding addressing endogeneity and serial correlation issues for computing long-run coefficients and cointegration, fmols is preferable to other estimation techniques (valenzuela, rojas, pomares, & rojas, 2019). in addition, dols estimation is an efficient method for time series estimation because it can address the nonstationarity issue in a parametric estimation that addresses the autocorrelation problem by including lagged values in the model. dols estimation has the following advantages over fmols estimation: (i) the ability to use limited sample sizes (ii) the presence of dynamic factors (iii) the ability to resolve refractions in a static regression; (iv) the applicability in the presence of multiple variables (you, khattak, & ahmad, 2022). the following equations 3 and 4 present fmols and dols, respectively ∅̂ = [ 𝛽 �̂� ] = (∑ 𝑍𝑡𝑍𝑡 ′𝑇 𝑡=2 ) (∑ 𝑍𝑡𝑦𝑡 + − 𝑇 [ +12 0 𝜆 ]𝑇 𝑡=2 ) (3) where zt is (x′t, d′t). the fmols estimation analysis mainly relies on the long-run covariance matrix. 𝑦𝑡 = 𝑥𝑡 ′𝛽 + 𝐷𝑖𝑡′𝛾1 + ∑ ∆𝑋𝑡+𝑗 + 𝑣𝑖𝑡 𝑟 𝑗=𝑞 (4) because of the orthogonal co-integration error term equation, the dols estimation approach augments cointegration analysis while considering both the lags and leads δ' xt. canonical co-integration regression in contrast to the fmols approach, ccr utilizes a stationary adaptation method to resolve the long-term correlation between the co-integration equation and stochastic regression errors. it generates square estimates with an asymptotically normal distribution. this estimator eliminates endogeneity and corrects for asymptotic bias caused by synchronous correlation among regressors (you et al., 2022). moreover, the ccr estimation method relies exclusively on regression (park, shin, & whang, 2010). this is an essential and effective strategy for fitting the linear regression component. therefore, the most difficult aspect of the asserted method is precisely identifying lags and lead orders. the estimation of the ccr is given in equation (5) below: 𝑦𝑡 ∗ = 𝛽𝑝𝑞 ′ 𝑧𝑝𝑞𝑡 ∗ + 𝜇𝑝𝑞𝑡 ∗ (5) the above equation shows that z* pqt and y* t both are stationary transformations of zpqt and yt, respectively. 4. results and interpretation the variables' descriptive statistics are illustrated in table 2. among all survey variables, forest cover has the highest mean or average value, while agriculture growth has the lowest value, according to these statistics. according to standard deviation statistics, forest cover has the highest standard deviation value, while agricultural growth has the lowest. the data range for forest cover is the greatest, while the data range for agricultural growth is the smallest. in addition, the jarque-bera test for normality reveals that only technological advancements and agricultural growth have normally distributed data. agbioforum, 25(1), 2023 | 92 hien et al. — the role of agriculture growth, technological innovation, and forest cover toward economic development: evidence from vietnam table 2: descriptive statistics data series average or mean std.deviation minimum value maximum value j-b test ed 1722.2 811.60 673.38 3352.06 2.370 tinov 250.483 264.24 22.000 1021.00 7.373*** fcov 124032.1 16082.58 93759.60 146430.9 1.996 agr 22.526 6.6771 13.574 40.485 6.649*** before proceeding with the estimation of the relationship between forest cover, technology innovations, agriculture growth, and economic development, unit root or stationary tests are used to determine the integration order of the variables, as this information is crucial for selecting the most suitable estimation approach for long run coefficient estimation. the augmented dickey-fuller (adf), the most common unit root test, is used for this purpose. table 3 displays the corresponding findings. according to the results, all variables are unit root and stationary after the difference at the level. since the adf test revealed that all series are integrated of order 1, there is a possibility of a long-run co-integration relationship between variables. before estimating the longterm relationship, we evaluate it using the johansen cointegration test. the results are presented in table 4. we can reject the null hypothesis of no co-integration based on trace and maximum eigen values statistics, as the probability values are less than 0.05. in both trace statistics and maximal eigen statistics, the results indicate the presence of at least three cointegrating equations. table 3: stationarity or unit root findings series adf test level first difference decision ed 7.412 -3.625*** i(1) tinov 4.6558 -4.8444*** i(1) fcov -0.624 -5.447*** i(1) agr -2.797 -5.6708*** i(1) table 4: johansen co-integration test findings cointegrating equations ed = f (tinov,fcov, agr) trace max eigenvalues none 92.058*** (0.000) 51.649*** (0.000) at most 1 40.409*** (0.0021) 18.598 (0.1090) at most 2 21.810*** (0.0049) 16.064*** (0.0257) at most 3 5.745*** (0.0165) 5.745*** (0.0165) the fmols, dols, and ccr results are listed in table 5 below. surprisingly, we find that the significance and signatures of the coefficients are identical across all three specifications, whereas the sizes of the coefficients vary slightly across regressions. first, we discover that technological innovation positively and significantly impacts vietnam's economic development. in fmols, dols, and ccr regressions, economic development increases by 1.75, 2.17, and 1.88 units for each unit increase in technological innovation. thus, we conclude that adopting technological innovations is a significant means of fostering economic growth in vietnam. the result suggests that innovation generates new enterprises and enhances the competitiveness of existing ones. significantly, innovation helps an economy achieve its goals by increasing output through enhanced input productivity, which can only be achieved by inventing new products or manufacturing techniques (washima, 2019). the study finding is in line with several previous studies, including bakpa, xuhua, and aboagye (2021) for ghana, wusiman and ndzembanteh (2020) for turkey and malaysia and (washima, 2019) for sri lanka but in contrast to shukla (2017) and rahman, suwitho, oh, and purwati (2019) as negative association between economic growth and technology innovations was observed unexpectedly for india and high innovative countries respectively. table 5: findings of dols, fmols, and ccr series fm-ols d-ols ccr coefficients prob value coefficients prob value coefficients prob value agr 5.222 0.5660 -12.656 0.2402 -0.0888 0.9928 tinov 1.751*** 0.000 2.171*** 0.000 1.885*** 0.000 fcov 0.0258*** 0.000 0.0131*** 0.011 0.022*** 0.0003 c 2042.1*** 0.0088 75.999 0.9221 -1544.8** 0.0843 r2 value 0.989 0.998 0.988 adjusted r2 value 0.988 0.998 0.986 the results of the three specifications disclose the longterm contribution of forest cover to economic growth. regarding the coefficients, we discover that forest cover increases economic development by 0.025, 0.013, and 0.022 units in fmols, dols, and ccr, respectively. the conclusion is plausible because forest area in vietnam is associated with the provision of subsistence for numerous rural communities (sunderlin & huynh, 2005). poor agbioforum, 25(1), 2023 | 93 hien et al. — the role of agriculture growth, technological innovation, and forest cover toward economic development: evidence from vietnam people in remote rural areas often rely heavily on natural forests' products and environmental services for their subsistence. moreover, forest cover is associated with employment creation, foreign exchange, exports, industries, tourism, the provision of sustenance minerals and timber, and wildlife, which are significant determinants of a country's economic development (oyetunji, 2019). previously, there have been several studies that conclude the positive role of forest cover in economic development, such as oyetunji (2019) for nigeria, (jaunky & lundmark, 2016) for a panel of 22 countries, and tru (2018) for vietnam. however, the study of naidoo (2004) contradicts our conclusion as it reveals a negative association between forestation and economic development in a panel of 70 countries. contrary to our third hypothesis of the study, which assumes a considerable impact of agricultural growth on economic development, the estimated results indicate that agriculture has a negligible impact on vietnam's economic development. this is a surprising finding that is supported by the research of uma, eboh, and obidike (2013) and ugwu and kanu (2012) for nigeria, who find that agriculture contributes minimally in terms of foreign exchange, capital transfer and formation, and output, as a result of poor policy coordination, policy instability, poor mismanagement and implementation of policies, and a lack of transparency. another possible explanation for the finding is that various agricultural leaders' political pledges, policies, and programs lacked a realistic approach that could increase agricultural productivity (uma et al., 2013). according to awan and aslam (2015) for pakistan and ansari and jadaun (2022) for india, agriculture positively influences the economic development of their respective nations. 5. conclusion and recommendations of the study given the widely acknowledged importance of technological innovations, forests, and agriculture sectors to the growth of any economy, the existing literature lacks empirical estimates of these factors about vietnam's economic development. to address this gap in the literature, the primary objective of this study is to estimate the role of technological innovations, forest cover, and agricultural expansion in vietnam's economic development. to this purpose, the study considers world development indicator data from 1990 to 2020. based on the johansen juselius co-integration test findings, empirical estimation is conducted using fmols, dols, and ccr regressions, as the study variables are found to be integrated of order 1 and have long-run relationships. according to all three estimates, the study's findings indicate that agriculture growth has no significant effect on economic development, whereas technology innovations and forest cover play a significant, positive role in vietnam's economic development. thus, the study concludes that technological innovations and forest cover can play a dominant role in augmenting vietnam's economic development, whereas the agriculture sector requires additional government attention due to its insignificance in the country's economic development. the study findings result in several valuable recommendations for the vietnamese government and policymakers. there is a need for policymakers to consolidate the technological innovations in vietnam's economic development, which requires the formulation and implementation of a rigorous policy agenda. for this reason, the vietnamese government should expand the industrial sector that engages in innovative activities more frequently. or, to put it another way, there must be more opportunities for innovative concepts supporting high-tech product development. government assistance in the form of increased funding for research and development in innovations is also required. the findings also demonstrate the positive contribution of forest cover area to economic development. to prevent deforestation, the study suggests that the vietnamese government should formulate and implement policies to preserve forests from illegal tree cutting. the vietnamese government must increase funding for the forest sector to increase its productivity. rural communities should be educated on the significance of forests to prevent the unsustainable exploitation of forest resources. as with all investigations, some limitations must be addressed in future research. due to data availability, the study only considers the effects of forest cover, agricultural expansion, and technological advancements on economic development. future 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(2022). exploring the role of forest resources abundance on economic development in the yangtze river delta region: application of spatial durbin sdm model. forests, 13(10), 1605. doi: https://doi.org/10.3390/f13101605 https://agbioforum.org/menuscript/index.php/agb/article/view/72 https://agbioforum.org/menuscript/index.php/agb/article/view/72 http://doi.org/10.4038/ijabf.v5i1.39 https://doi.org/10.18506/anemon.521583 https://doi.org/10.1016/j.ijhydene.2021.09.067 https://doi.org/10.1016/j.resourpol.2022.102685 https://doi.org/10.1007/s11356-021-17938-w https://doi.org/10.3390/f13101605 agbioforum, 25(2): 160-170. ©2023 agbioforum an investigation into the factors of tourists' environmentally responsible behaviour muhammad awais bhatti* associate professor, department of management, school of business, king faisal university, al-hasa, saudi arabia. email: mbhatti@kfu.edu.sa emad mohammed alnasser assistant professor, department of tourism and hotel management, collage of tourism and archaeology, king saud university, riyadh, saudi arabia, email: ealnasser@ksu.edu.sa the objective of this study was to evaluate the determinants that impact the environmentally responsible conduct of tourists within tourist destinations. the study focused on various factors, such as the level of environmental commitment, the reputation of the destination in terms of eco-friendliness, the satisfaction of tourists, and their perception of the value offered by the destination. in order to examine the hypotheses, data was gathered from a sample of 180 tourists visiting different tourist destinations. the data underwent analysis through regression analysis and moderation testing using ibm spss. the findings of the analysis indicate a positive correlation between environmental commitment, destination eco-friendly reputation, tourist satisfaction, and tourist value perception of destinations with the environmentally responsible behaviour exhibited by tourists. additionally, it was discovered that social influence plays a crucial role in moderating the association between the level of environmental commitment and the environmentally responsible behaviour exhibited by tourists. this study makes a valuable contribution to the existing body of literature by examining the impact of various factors on the environmentally responsible behaviour of tourists. notably, these factors have not been previously examined within a comprehensive model. furthermore, there is a limited amount of research available regarding the ecological standing of tourist destinations. as a result, this study serves as a significant addition to the existing literature on academia. keywords: environmentally responsible behaviour, responsible tourism, eco-friendly reputation, environmental commitment, destination value perception, tourist satisfaction. 1. introduction the tourism industry has experienced significant growth in recent years, particularly in regions that boast natural attractions. however, this growth has raised concerns about the potential negative impact on the environment, as tourist vehicles and accommodation facilities contribute to petrol emissions (weini et al., 2022). the tourism industry relies on the inherent natural and environmental appeal of a particular destination (ali et al., 2023; kiatkawsin & han, 2017). nevertheless, it is worth noting that in certain instances, tourists can be held accountable for the detrimental impact on the environment in a given location (shaker et al., 2022). this can be attributed to their engagement in activities such as littering, overcrowding, disturbance of wildlife, and pollution, among others (su et al., 2020b). the activities of tourists, whether deliberate or inadvertent, have a discernible impact on the natural environment of tourist destinations, exacerbating the existing detrimental effects of global warming (guo, 2023; li et al., 2021). therefore, there is a growing scholarly and practical interest in identifying strategies to mitigate the adverse impacts of tourism on the natural environment of popular tourist destinations. this pursuit aims to achieve resource conservation, safeguard the integrity of the natural environment, and foster the adoption of sustainable development practises. ultimately, these efforts seek to enhance the overall tourism experience for all stakeholders involved (kurniawan, 2023; pandya & boukareva, 2022; tezer & bodur, 2020). vakhitova et al. (2022) study the emergence of environmentally responsible behaviour among tourists has been recognised as a significant phenomenon. environmentally responsible behavior is “an individual’s environmental concern, commitment and ecological knowledge” (chiu et al., 2014). it can also be defined as “behaviour that consciously seeks to minimize the negative impact of one’s action on the natural and built world” (kollmuss & agyeman, 2002). the previously mentioned behaviours encompass activities such as upholding the cleanliness of the destination, removing litter, refraining from engaging in actions that may detrimentally impact the environment or ecosystem of the location, and abstaining from causing harm to the local flora and fauna. the objective of this study is to ascertain the determinants that exert an influence or make a contribution to the environmentally responsible conduct exhibited by tourists. the study specifically examined various factors, including environmental commitment, the eco-friendly reputation of the destination, tourist satisfaction, and the perceived value of the destination. environmental commitment is “a psychological connection with, and enduring orientation toward, the environment” (he et al., 2022; lougheed, 2022; yehia et al., 2022). the concept of a destination's eco-friendly reputation can be understood as a comprehensive evaluation of the degree to which a destination is deemed environmentally favourable or unfavourable (suasthi, 2022). the term "tourist perceptions" refers to the assessments, appraisals, evaluations, and viewpoints expressed by tourists regarding the ecological or environmental activities associated with a particular destination (su et al., 2020b). mailto:mbhatti@kfu.edu.sa mailto:ealnasser@ksu.edu.sa agbioforum, 25(2), 2023 | 161 bhatti & alnasser — an investigation into the factors of tourists' environmentally responsible behaviour tourist satisfaction refers to the evaluation of pre-travel expectations in relation to the subsequent positive experiences and emotions encountered during the travel journey, with regards to the chosen destination (he et al., 2018). the concept of perceived value encompasses various aspects of the travel experience, such as the price, quality, duration, and emotional factors (he et al., 2018). furthermore, this study also examines the moderating influence of social factors on the association between individuals' commitment to the environment and their engagement in environmentally responsible actions as tourists. social influence is basically “the degree to which an individual perceives that important others believe he or she should behave in a certain way” (venkatesh et al., 2012). in the context of tourism, social influence refers to the anticipated environmental responsibility exhibited by an individual during their travels, as influenced by the expectations of their social circle. this study makes a valuable contribution to the existing literature by examining factors that have not been previously tested within a comprehensive model. furthermore, there is a dearth of research on the eco-friendly reputation of destinations, underscoring the significance of this study as a valuable addition to the existing body of knowledge. 2. literature review 2.1 environmentally responsible behaviour of tourist tourism plays a pivotal role in fostering the economic development of a given locality, with a significant portion of tourists being drawn to destinations primarily for their aesthetically pleasing natural surroundings. hence, in recent years, there has been a growing apprehension surrounding the concept of green tourism. this form of tourism aims to achieve a harmonious equilibrium between the preservation and safeguarding of the natural environment while simultaneously capitalising on the economic advantages derived from increased tourist activity. the objective is to mitigate the adverse impact of tourists on the environment while ensuring the provision of necessary amenities and services to cater to their needs. the primary stakeholder with the greatest influence on the promotion of green tourism is the tourists themselves. the significant potential of tourists to negatively impact the environment (han & hyun, 2017; su & swanson, 2017) and, therefore, the adoption of environmentally responsible behaviour by these tourists assumes paramount importance (chien et al., 2022; mariotti, 2022; radović et al., 2023; yamen & can, 2023). environmentally responsible behaviour can simply be regarded as “minimizing activities adverse to the environment and exhibiting a commitment to environmental protection” (he et al., 2018). in academic literature, the concept of environmentally responsible behaviour is often used synonymously with various other terms, including green consumption, ecofriendly behaviour, environment-friendly behaviour, and pro-environmental behaviour, among others (he et al., 2022; kim et al., 2019; li et al., 2019; tezer & bodur, 2020). these behaviours encompass the principles of respecting and refraining from disrupting the culture and natural habitat or lifestyle of local residents, preserving the natural environment, refraining from littering, upholding the cleanliness of the destination, properly disposing of waste, utilising environmentally friendly fuel, refraining from engaging in activities that may harm the environment or ecosystem of the destination, abstaining from damaging flora and fauna, and encouraging fellow travellers to refrain from engaging in harmful activities (xu et al., 2018). in recent times, there has been an increased focus on climate change and corresponding advocacy efforts, which have resulted in heightened awareness among tourists (jankowska & gralewski, 2022; máté et al., 2023; shafi et al., 2022; vitkauskaitė, 2023). this has particularly impacted individuals who engage in travel for the purpose of experiencing and appreciating the natural splendour of various destinations. consequently, there is a greater expectation for these tourists to exhibit environmentally responsible behaviour (han et al., 2016). the objective of this study is to ascertain the personal level factors influencing tourists' motivation and inclination towards engaging in environmentally responsible behaviour during their tours. the subsequent subsections provide a comprehensive outline of the description and explanation of each factor that is examined in this study. 2.2 environmental commitment commitment can be understood as a psychological bond that encompasses emotions and cognitions, allowing individuals to safeguard, maintain, and foster relationships and affiliations (davis et al., 2011). in addition to the concept of interdependence within interpersonal relationships, which encompasses commitment, it can also extend to the relationship between individuals and their environment. according to the interdependence theory, commitment refers to a subjective reliance. the degree to which an individual's needs are satisfied by a particular entity and their dependence on said entity to meet those needs is indicative of the potential for higher levels of commitment (he et al., 2018). this explanation suggests that the degree of reliance on the relationship is a determining factor in an individual's level of commitment. individuals who possess a higher level of dedication towards a particular matter are inclined to exert greater endeavours in order to safeguard and maintain that association. based on the same lines, environmental commitment can be defined as “a psychological connection with, and enduring orientation toward, the environment” (he et al., 2022). self-expansion theory suggests that an individual's relationships serve to broaden their self-concept (aron & aron, 1986). an individual's self-concept undergoes continuous development as their interpersonal relationships and affiliations with valued entities, including the natural environment, expand. this holds particularly true in the context of tourism, as tourists typically prioritise establishing a connection with the environment through the exploration of destinations characterised by natural beauty and landscapes (frye, 2018; su et al., 2020a; su et al., 2020b). consequently, individuals who possess a heightened sense of agbioforum, 25(2), 2023 | 162 bhatti & alnasser — an investigation into the factors of tourists' environmentally responsible behaviour responsibility towards the environment are more likely to engage in proactive measures and actions aimed at the conservation and welfare of the environment (davlembayeva et al., 2021; wesselmann et al., 2022). prior studies have indicated that a higher level of environmental commitment is positively associated with an increased propensity for engaging in environmentally responsible behaviour (he et al., 2018; raineri & paillé, 2016). therefore, based on the discussion above, the following hypothesis is proposed, h1: environmental commitment is positively associated with environmentally responsible behaviour of tourists. 2.3 destination eco-friendly reputation destination reputation is “the public’s general feeling, impression and cognition of it” (abidin et al., 2022; kurniawan, 2023; mingchuan, 2015). destination ecofriendly reputation can be regarded “as a comprehensive assessment of the extent to which a destination is substantially “good” or “bad” regarding the environment. it includes the estimations, judgments, evaluations and opinions of tourists related to the destination's ecological or environmental activities” (he et al., 2018; pathmanathan et al., 2022). a positive reputation is indicative of tourists' perception that the destination's management is effectively implementing ecological protection and environmental conservation practises (darwish & burns, 2019; han & yoon, 2015; pereira et al., 2022; semvua et al., 2022). prior research has indicated that a destination's favourable reputation has advantageous consequences in terms of attracting tourists, investments, enhancing destination competitiveness, and fostering sustainable growth (mingchuan, 2015; su et al., 2020c). consequently, this results in recurrent visits from travellers who perceive the destination to possess established eco-friendly and socially responsible practises, aligning with their personal environmental concerns (alruwaili, 2022). the concept under consideration shares a fundamental principle with corporate social responsibility (csr) practises, as it pertains to the impact of an organization's csr efforts on customers' perceptions of the organisation and their inclination to engage with its products and services (ghnaim et al., 2023; peter & jule, 2023). destinations that possess a favourable reputation are generally perceived as possessing greater credibility and trustworthiness. consequently, these destinations tend to attract a higher number of tourists (jiang et al., 2023; sriyakul & chankoson, 2022; su et al., 2020c). the concept of destination reputation is considered to be an intangible attribute that is inherently linked to a destination (durana et al., 2022; kudla et al., 2023; ovcharenko & semenenko, 2022; streimikiene, 2023). it has the potential to enhance tourist satisfaction, improve the overall image of the destination, and serve as a fundamental pillar for achieving sustainable development (tanković & mušanović, 2022). furthermore, in the event that a particular destination has already established a commendable reputation for its commitment to ecological sustainability, it is probable that tourists will demonstrate socially responsible conduct as a means of upholding the established standards implemented by the destination management. based on the preceding discussion, the following hypothesis is proposed. the existing literature on destination reputation is broad, but there is a lack of research specifically focused on destination eco-friendly reputation. therefore, this study represents a significant contribution to the existing body of knowledge. h2: destination eco-friendly reputation is positively associated with environmentally responsible behavior of tourists. 2.4 tourist satisfaction the level of satisfaction or dissatisfaction experienced by a consumer with a product or service is determined by the disparity between their expectations and the actual performance of said product or service (chiu et al., 2014). satisfaction can be understood as a psychological reaction that arises from the confirmation or disconfirmation of a consumer's experience with a particular product or service (naqshbandi & jasimuddin, 2022; wang et al., 2023). within the realm of travel and tourism, the level of satisfaction experienced by tourists is ascertained through the juxtaposition of their pre-travel expectations with the tangible positive experiences and emotions encountered during their journey to the destination (chiu et al., 2014; he et al., 2018). previous research indicates that the level of satisfaction experienced by tourists with a particular destination has a significant impact on their intention to revisit that destination and their inclination to recommend it to others (mušanović, 2020; triantafillidou & petala, 2016). lee (2011) discovered that a positive tourist experience leading to satisfaction is a factor that influences environmentally responsible behaviour. there exists a positive correlation between a tourist's level of satisfaction with a destination and their inclination towards prioritising the preservation and safeguarding of its environment (göker, 2022; lincényi & bulanda, 2023; roszkowójtowicz et al., 2022; tautiva et al., 2023). tourists are inclined to exhibit a desire to return to and revisit a destination that has provided them with a pleasurable experience and a sense of contentment (han et al., 2016). the interrelationship described in this context is grounded in reciprocity theory, which posits that when an individual receives a favour or experiences satisfaction from a person or entity, they are inclined to reciprocate by exhibiting positive behaviour (he et al., 2018). similarly, in the context of tourism, when a tourist experiences satisfaction with a particular destination, there is a higher probability that they will engage in behaviours that contribute positively to the destination's well-being, while avoiding any actions that may cause harm. consequently, individuals are likely to demonstrate a heightened inclination towards engaging in environmentally conscious actions within these settings. this inclination stems from their desire to safeguard the pristine natural surroundings that they have personally experienced during their visit, and to ensure the preservation of this environment for their future visits as well as for the benefit of other travellers (cheng & chen, 2022). therefore, based on the discussion above, the following hypothesis is proposed, agbioforum, 25(2), 2023 | 163 bhatti & alnasser — an investigation into the factors of tourists' environmentally responsible behaviour h3: tourist satisfaction is positively associated with environmentally responsible behavior of tourists. 2.5 tourist value perception of destination perceived value can be defined as “the consumer's overall assessment of the utility of a product (or service) based on perceptions of what is received and what is given” (zeithaml, 1988). consumer perception refers to the subjective evaluation made by individuals regarding the value or benefits they receive in exchange for the monetary price or cost incurred. the determination of value for a product or service is based on whether the benefits outweigh the costs, or at the very least, if the costs are commensurate with the requirements (chiu et al., 2014). the perceived value within the context of travel and tourism pertains to the comprehensive travel encounter, encompassing aspects such as pricing, quality, duration, and emotional elements (he et al., 2018). the assessment of a destination's worth is contingent upon various factors, including but not limited to cleanliness, environment, climate, and culture. additionally, factors such as the allocation of time and financial resources, as well as the emotional dimensions encompassing relaxation, enjoyment, and adventure, are significant in shaping individuals' perceptions regarding the value of a particular destination (bajs, 2015). previous research indicates that there exists a positive correlation between the perception of higher value and the engagement in environmentally responsible behaviour among tourists. this relationship is observed when tourists perceive their travel experience to be of superior quality and advantageous. consequently, these individuals exhibit a greater inclination towards the preservation of the environment at their destination, as a means to safeguard and uphold the perceived value associated with their travel experience (alonso-vazquez et al., 2019; han et al., 2016). the observed behavioural response can be attributed to reciprocity theory, which posits that when a consumer perceives a higher value resulting from superior service quality, there is an increased probability of them exhibiting positive behaviour in response. individuals are more likely to feel a sense of obligation to reciprocate with positive behaviour when they receive something that they perceive as highly valuable (he et al., 2018). likewise, individuals who perceive a higher level of value derived from a tour or destination are more inclined to engage in environmentally responsible behaviour as a form of reciprocal action (li et al., 2021). therefore, based on the above argument, the following hypothesis is proposed, h4: value perception of destination is positively associated with environmentally responsible behaviour of tourists. 2.6 social influence social influence can be defined as “the degree to which an individual perceives that important others believe he or she should behave in a certain way” (venkatesh et al., 2012). subjective norms refer to the pressures or norms that arise from an individual's social circle and influence their decision to engage in or abstain from a specific behaviour. these norms can either encourage or discourage the individual from performing the behaviour in question. the social network of an individual may encompass various individuals, such as family members, friends, colleagues, or significant others. the impact of social influence on an individual's environmentally responsible behaviour has been found to be positive (liu et al., 2019; wang et al., 2019). when a tourist perceives that an individual or a group of importance to them advocates for environmentally responsible behaviour during their tours, it is probable that the tourist will be influenced by the opinions of these significant others. consequently, the tourist's inclination, probability, and intention to engage in environmentally responsible behaviour are likely to be heightened (panwanitdumrong & chen, 2021). likewise, the behaviour of a tourist is also influenced by the culture and society to which they belong. if a tourist is a member of a society that prioritises discipline and values environmentally friendly practises, their adherence to these values and norms is likely influenced by the cultural and societal upbringing they have received (al kubaisi, 2023). therefore, this upbringing enhances the probability that they will exhibit environmentally responsible behaviour even when visiting destinations outside of their own society (kim & stepchenkova, 2020). this study examines the role of social influence as a moderator in the relationship between a tourist's environmental commitment and their environmentally responsible behaviour. this premise is grounded in the notion that the correlation between an individual's personal dedication to environmental preservation and their inclination to engage in environmentally responsible actions is reinforced when they are subject to social influence from their social network, which holds expectations for them to exhibit environmentally responsible behaviour. therefore, the following hypothesis is proposed, h5: social influence moderates the relationship between environmental commitment and environmentally responsible behaviour of tourists. environmental commitment of tourist destination ecofriendly reputation tourist satisfaction with destination tourist value perception of destination social influence environmentally responsible behaviour of tourist figure 1: proposed framework agbioforum, 25(2), 2023 | 164 bhatti & alnasser — an investigation into the factors of tourists' environmentally responsible behaviour 3. methodology 3.1 measures the study's variables were assessed using pre-existing measurement questionnaires that had been previously validated. the measurement scale utilised for assessing the variable of environmental commitment was derived from the research conducted by he et al. (2018). the scales used to measure the variables of destination eco-friendly reputation and tourist satisfaction were derived from the research conducted by su et al. (2020b). the measurement of tourists' perception of value was conducted by utilising the instrument developed by he et al. (2018). the measurement of environmentally responsible behaviour was conducted by utilising the instrument developed by panwanitdumrong and chen (2021), he et al. (2018), as well as su et al. (2020b). the measurement of the variable of social influence was conducted by modifying the instrument developed by panwanitdumrong and chen (2021). the variables were assessed using a 5-point likert scale. table 1 below displays the measurement items/statements for each variable, along with their respective sources. table 1. measurement tools items references environmental commitment he et al. (2018) i am committed to keeping the best interests of the environment in mind at (name of destination) i am interested in strengthening my connection to the environment of (name of destination) in the future i feel very attached to the natural environment of (name of destination) i expect that i will always feel a strong connection with the environment of (name of destination) social influence panwanitdumrong and chen (2021) people who matter to me think i should take actions to protect the environment of this destination people who i respect hope i can protect the environment of this destination people who i am familiar with think i will help to protect the environment of this destination destination eco-friendly reputation su et al. (2020b) in general, the destination has a good reputation in ecological environment field overall, the destination has a positive eco-friendly reputation overall, the destination has a favorable reputation for its green practices tourist satisfaction su et al. (2020b) overall, i am satisfied with my visit to (name of destination) compared to my expectations situation, i am satisfied with my visit to (name of destination) compared to the ideal situation, i am satisfied with my visit to (name of destination) tourist value perception he et al. (2018) the quality of this travel experience is acceptable this travel experience is worth the money this travel experience makes me feel good participating in this travel activity makes a good impression on other people environmentally responsible behavior panwanitdumrong and chen (2021), he et al. (2018), and su et al. (2020b) i am willing to properly dispose of litter i pick up litter left by other people after a picnic, i leave the place as clean as it was originally i properly dispose of litter i comply with the legal ways not to destroy the destination's environment i report to the destination administration if other people are engaged in environmental pollution or destruction when i see garbage and tree branches, i will make an effort to put them in the trash can if there are cleaning environment activities, i am willing to attend i would convince my travel companions, if any, to protect the natural environment of the destination i try not to disrupt the fauna and flora during my travel” 3.2 data collection the data was collected using a non-probability sampling method known as convenience sampling due to the unavailability of a comprehensive list of tourists visiting saudi arabia. the data was gathered from tourists who visited two cities in saudi arabia, specifically al-hasa and abha. the participants were provided with a self-administered questionnaire and were requested to complete it on a voluntary basis. the individuals were provided with a guarantee that their data would exclusively be utilised for scholarly objectives. a total of 180 questionnaires were collected and subsequently utilised for the purpose of data collection. regression analysis and moderation testing using spss were employed to analyse the collected data for the purpose of hypothesis testing. 4. analysis 4.1 descriptive statistics table 2 displays the descriptive statistics of the study's variables, encompassing the mean, standard deviation, reliability statistics, and correlations among the variables. the examination of the table reveals that the reliability statistics for all variables fall within the acceptable range. this indicates that the measurement instruments employed to gather data exhibit internal consistency and can be considered reliable. moreover, the interrelationships between variables do not exhibit excessive levels of correlation that would result in multicollinearity. agbioforum, 25(2), 2023 | 165 bhatti & alnasser — an investigation into the factors of tourists' environmentally responsible behaviour table 2. descriptive statistics variable mean sd cronbach’s alpha 1 2 3 4 5 6 environmental commitment 3.21 2.34 7.64 1 destination eco-friendly reputation 3.01 2.49 7.69 0.59 1 tourist satisfaction 3.64 3.57 8.04 0.61 0.34 1 value perception 2.97 3.94 8.64 0.43 0.22 0.67 1 social influence 3.55 2.01 8.97 0.38 0.76 0.54 0.57 1 environmentally responsible behaviour 2.67 1.67 7.88 0.66 0.42 0.29 0.49 0.27 1 4.2 testing of hypotheses the data that was gathered was subjected to analysis using ibm spss. the study hypotheses were tested using simple linear regression. the findings of the regression analysis are presented in table 3 as shown below. the table illustrates that the adjusted r square value indicates that the collective influence of the four independent variables (environmental commitment, destination eco-friendly reputation, tourist satisfaction, and tourist value perception) accounts for 86% of the variability in the dependent variable, specifically, the environmentally responsible behaviour of tourists. furthermore, the table presented below provides evidence that there exists a positive and statistically significant relationship between environmental commitment and the engagement in environmentally responsible behaviour among tourists. this finding supports the first hypothesis (h1) proposed in the study. this implies that there is a positive correlation between an individual's level of personal environmental commitment and their likelihood to engage in environmentally responsible behaviour. the findings of this study provide support for hypothesis 2, as they indicate a positive and significant relationship between a destination's eco-friendly reputation and the environmentally responsible behaviour exhibited by tourists. it also means that there is a positive correlation between a destination's eco-friendly reputation and the likelihood of tourists engaging in environmentally responsible behaviour. the study's findings indicate a positive and significant correlation between tourist satisfaction and environmentally responsible behaviour among tourists, thereby providing support for hypothesis 3. it also suggests that there is a positive correlation between tourist satisfaction with a destination and their propensity to engage in environmentally responsible behaviours. finally, the study finds a positive and significant relationship between tourists' perception of tourist value and their environmentally responsible behaviour, thus providing support for hypothesis 4. this implies that there is a positive correlation between the perceived value of a destination by a tourist and their likelihood to engage in environmentally responsible behaviour. as a result, all of the direct hypotheses exhibit positive and statistically significant relationships. table 3. regression analysis regression statistics multiple r 0.79 r2 0.50 adjusted r2 0.86 standard error 0.48 observations 180 anova df ss ms f significant f regression 64 53.21 7.99 44.99 10.28 residual 36 16.28 0.64 total 100 69.49 coefficients se t value p-value constant 0.024 0.24 1.99 0.04 environmental commitment 0.030 0.30 1.98 0.03 destination eco-friendly reputation 0.022 0.27 2.67 0.03 tourist satisfaction 0.039 0.19 3.67 0.04 value perception 0.016 0.33 4.01 0.01 p<0.05 (hair et al., 2007), t> 1.96 (hair et al., 2007) 4.3 moderating effect of social influence in addition to examining the direct effects, the researchers also assessed the moderating effect of social influence using the hayes macro in ibm spss. the presented table provides evidence that social influence plays a constructive and statistically significant role in moderating the association between environmental commitment and environmentally responsible behaviour, thereby confirming the hypothesis h5 of the study. this implies that the correlation between an individual's personal commitment to the environment and their inclination to engage in environmentally responsible behaviour as a tourist becomes more pronounced when their social circle also exerts an influence on them to behave in an environmentally responsible manner. the impact of familial, social, and peer networks serves to augment the individual's commitment to environmental responsibility. dependent variable r2 variables b t f p environmentally responsible behavior 0.29 constant ec si ec x si 2.67 0.21 0.02 0.00 5.99 1.24 1.91 2.36 19.67 0.01 5. discussion the objective of this study was to ascertain the determinants that impact the environmentally conscious conduct of tourists agbioforum, 25(2), 2023 | 166 bhatti & alnasser — an investigation into the factors of tourists' environmentally responsible behaviour in the cities of al-hasa and abha, located in saudi arabia. the study specifically examined various factors, such as environmental commitment, the eco-friendly reputation of the destination, tourist satisfaction, and tourists' perception of the value of the destination. in order to examine the correlation between these factors and tourists' environmentally responsible behaviour, data was gathered from a sample of 180 tourists from two cities in saudi arabia. the data that was gathered was subjected to analysis using the statistical package for the social sciences (spss), and the subsequent findings are now presented and examined in the subsequent sections. the findings of the study indicate that tourists who possess a personal environmental commitment tend to engage in environmentally responsible behaviour during their tours. this outcome aligns with previous research in the field (davlembayeva et al., 2021; he et al., 2022; raineri & paillé, 2016). individuals who possess a heightened level of environmental consciousness are more inclined to engage in behaviours aimed at conserving, preserving, and safeguarding the natural environment. they demonstrate a commitment to refraining from littering, avoiding activities that contribute to environmental degradation, and minimising their carbon footprint when visiting various destinations. in general, the individual dedication of a tourist to environmental preservation empowers them to actively contribute to the welfare of the environment, leading them to consistently exhibit environmentally responsible behaviour during their travels. furthermore, the findings of the research also indicate that the perceived environmentally sustainable image of a tourist destination plays a significant role in influencing the environmentally responsible conduct of tourists in saudi arabia. this finding is inherently rational, as there exists a positive correlation between a destination's reputation for ecofriendly practises and its tourists' inclination to adopt environmentally conscious behaviours. this can be attributed to the tourists' awareness that any actions leading to environmental harm would result in significant penalties, fines, or other forms of punishment. the implementation of environmentally sustainable practises and the preservation of the ecological environment by destination management also appeals to environmentally conscious tourists (su et al., 2020c). the inclusion of this aspect enhances the overall value of the travel experience for tourists. saudi arabia has actively endeavoured to promote its tourist destinations as ecofriendly and has implemented environmentally sustainable practises. consequently, there has been a noticeable increase in tourist interest in these destinations, and visitors tend to exhibit environmentally responsible behaviour during their visits. in addition, the findings also indicate that the level of tourists' satisfaction with a particular destination plays a significant role in influencing their inclination towards engaging in environmentally responsible actions. this discovery aligns with previous research conducted by lee (2011). tourists who derive satisfaction from their visit to a specific destination are more inclined to engage in the preservation of its natural environment. this inclination stems from their desire to ensure that future visitors can experience the destination in a manner similar to their own enjoyable experience. additionally, these tourists are motivated by the prospect of revisiting the destination themselves. the positive encounter and subsequent contentment during a visit to a particular destination engenders a heightened sense of attachment to said location, thereby instilling a desire to preserve its natural splendour and prevent any potential harm. consequently, individuals are inclined to exhibit environmentally conscientious conduct and to promote such conduct among others, thereby ensuring the preservation of the natural splendour of the location for future generations to appreciate. finally, the findings indicate that the perception of tourists regarding the value of the destination also has an impact on their propensity to engage in environmentally responsible behaviour. this discovery aligns with the previous one, as it suggests that tourists who perceive their visit to a particular destination as providing significant value are more inclined to engage in environmentally responsible behaviours in order to preserve the natural beauty and integrity of that location (han et al., 2016). the concept of value perception encompasses not only financial considerations, but also the holistic experience of a tourist, which encompasses various factors such as the amenities offered at a destination, the scenic beauty and natural attractions, the cleanliness and hygiene of the environment, and the cultural richness that tourists have the opportunity to immerse themselves in at such destinations. collectively, these various factors synergistically contribute to the overall tourist experience, thereby shaping the perception of the destination's value. consequently, this perception plays a pivotal role in motivating tourists to adopt environmentally responsible behaviours that safeguard the destination's ecosystem from any detrimental impacts. in addition to the previously mentioned factors, the findings of the study also unveiled the moderating influence of social influence on the association between environmental commitment and the environmentally responsible conduct of tourists. individuals who are part of a social circle that places importance on environmentally responsible behaviour during travel are more likely to exhibit responsible behaviour themselves, as they are influenced by the social expectations of their peers in order to gain acceptance within the group. this phenomenon has been documented in previous scholarly investigations as well (liu et al., 2019; panwanitdumrong & chen, 2021; wang et al., 2019). 5.1 conclusion an individual who possesses a pre-existing personal commitment to environmental preservation is more inclined to exhibit environmentally responsible behaviour during their visits to tourist destinations. furthermore, if an individual's family, friends, peers, and significant others exert influence on them to engage in environmentally conscious actions, the bond between the individual and responsible behaviour is further reinforced. consequently, agbioforum, 25(2), 2023 | 167 bhatti & alnasser — an investigation into the factors of tourists' environmentally responsible behaviour the probability of exhibiting responsible behaviour is heightened to an even greater extent. 5.2 theoretical implications this study makes a valuable contribution to the existing literature by examining the combined effects of various factors, such as environmental commitment, destination eco-friendly reputation, tourist satisfaction, tourist value perception of destination, and social influence, on the environmentally responsible behaviour of tourists in saudi arabia. previous research has not explored these factors in conjunction with each other in a comprehensive model, making this study a novel and significant addition to the academic discourse on this topic. furthermore, there is a limited amount of research available on the topic of a destination's eco-friendly reputation, underscoring the significance of this study as a valuable addition to the existing body of knowledge. 5.3 practical implications the findings of this study can provide valuable insights for the management of tourist destinations. specifically, the study highlights the importance of factors such as the destination's eco-friendly reputation, tourists' value perception, and tourist satisfaction in influencing their environmentally responsible behaviour. this implies that destination management authorities should prioritise enhancing their image and implementing environmentally sustainable practises and measures. by shaping tourists' perceptions, it is possible to encourage responsible behaviour that minimises any detrimental impact on the natural environment of the destination. in this context, it is imperative to implement measures pertaining to cleanliness, hygienic protocols, appropriate waste management, provision of informative signboards outlining guidelines for maintaining cleanliness, and the prohibition of detrimental practises. these measures are essential to ensure that tourists are well-informed about permissible and impermissible actions, as well as the consequences they may face for non-compliance. the implementation of various measures and adoption of specific practises have the potential to enhance the overall travel experience for tourists universally. 5.4 limitations and future research directions future research can delve into additional factors that may potentially elucidate the environmentally responsible behaviour of tourists. the collection of qualitative interview data from 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(alsuwaidi et al., 2021) individual well-being is bolstered by increased job satisfaction among employees who engage in green behavior. one definition of "healthy culture" is "a set of essential qualities formed by the interaction of social and organizational systems that reflect the beliefs, presumptions, expectations, and interpretations of employees" and influence how they think, feel, and act regarding their own and the group's health (kent et al., 2016). successful workplace wellness programs are characterized by effective communication techniques, opportunities for employee engagement, leadership involvement at all levels, utilization of resources, relationships, and ongoing evaluation (melnyk et al., 2016). governments and organizations worldwide are instituting effective measures to halt the escalating ecological devastation. many governments have established policies encouraging organizations to engage in environmentally favorable work activities (ahmad et al., 2021). the effectiveness of the practices is contingent on the employees' ecological behavior (fawehinmi et al., 2020). financial pressures, familial dynamics, mental health issues, and issues with an aging population are common social concerns in saudi primary healthcare (almujadidi et al., 2022). as a cornerstone of the united nations, the kingdom of saudi arabia endeavors to achieve the supportable development objectives of the 2030 agenda and greener economic growth. (chaaben et al., 2022) the green economy catalyzes sustainable development in all three dimensions: social, economic, and environmental. it aims to improve social harmony, reduce environmental risks, and increase well-being. in addition to the rapid global spread of covid-19, environmental destruction and pollution have disrupted livelihoods and endangered human health. now, the greatest challenge for communities is to recover from these crises. (chen et al., 2020) governments require innovative approaches to enhance the adaptability of businesses and communities and maintain environmental standards. at a recent united mailto:mdoghan@kfu.edu.sa mailto:a.zakariya@uu.nl agbioforum, 24(3), 2022 | 85 al doghan and zakariya. — developing positive health behavior among employees exploring role of green work environment in… nations meeting, a delegation from various nations stated that extreme weather disproportionately affects developing economies (un, 2019). human health is in jeopardy due to an increase in temperature, poor and hazardous air quality, dust and pollution, polluted water, and numerous other issues (peng et al., 2021). several advancements have occurred in the healthcare industry due to technological advancements. these innovative technologies require effective management practices within saudi healthcare institutions (alaqeel et al., 2019). specifically, a company can facilitate the development of novel concepts for green work environment production or process innovation when it strongly emphasizes green work activities and participation, which aid employees in acquiring ecological skills and knowledge in the health sector. employees who work in green environments are significantly better equipped to identify environmental issues and are more likely to engage in activities that promote green innovation. focusing on a green environment can lead to green behavior associated with happiness (ahmed et al., 2020). moreover, well-being is a shared objective of both individuals and organizations (fan et al., 2019). therefore, organizations must prioritize employee well-being by promoting green knowledge and awareness (muafi, 2022). the kingdom of saudi arabia has committed substantial resources to improve healthcare to provide unrestricted and open access to healthcare services (almajwal, 2016). participation in a green workplace can increase the positive green behaviors of employees. green reward and performance management strategies can align employee behavior with an organization's environmental objectives (song et al., 2020). this study examines the relationship between green knowledge, awareness, environmental concerns, and positive health behavior among saudi arabian healthcare workers. using the s-o-r (stimulus-organism-response) paradigm as a framework, we propose that a positive green work environment that promotes green knowledge and environmental concerns will positively influence employees' health behavior. moreover, given the significant role that employee well-being plays in their behavior and perception, we intend to explore outcomes further by evaluating employee well-being as the mediator in the relationships. 2. literature review 2.1 theoretical background the stimulus organism response model explains and analyzes the relationship between environmental concern, green knowledge and awareness, employee well-being, and positive health behavior. according to the paradigm, the stimulus is external, such as the physical environment. their environment typically exerts a physical and emotional influence on individuals. as an individual interacts with environmental stimuli, the individual's internal state is sustained, leading to reactions and responses (bagozzi, 1986; mehrabian et al., 1974). consequently, as the external stimulus positively affects a person's mental and emotional pressure or tension, it develops behaviors to initiate or prevent (lee et al., 2011). so, according to the framework of the study, the positive work environment that raises awareness and concern about green practices is the stimulus, which activates the individuals, and the organism in the study, resulting in improved well-being and health behaviors, which can be considered a response. the work environment influences the perception of employee satisfaction, which is directly related to employee well-being and determines the behavioral response (ahmed et al., 2020). this model has been employed in both environmental psychology and business studies. therefore, it is applicable to demonstrate the effect of a green workplace through green knowledge, awareness, and concern resulting in positive health behaviors moderated by employee well-being (ahmed et al., 2020). 3. relational review 3.1 impact of green knowledge and awareness on positive health behavior it has been discovered that green practices within an organization influence employee behavior. for instance, when a company implements green human resource management, employee knowledge and comprehension of the environment and related values increase. the employees engage in environmentally friendly behaviors. not only do they engage in actions that can be considered voluntary, but they are also unrelated to their job duties. even if these practices are not taught or practiced within the organization, individuals may begin to adopt them as part of their daily routine (chaudhary, 2020; dumont et al., 2017; renwick et al., 2013). these green practices raise employee awareness of the organization's environmental goals and encourage workers to adopt a greener mindset and consider the welfare of society, nature, and themselves. consequently, in addition to environmental knowledge and practices, employees develop pro-environmental psychological capital resulting in sustainable behaviors (hhdnp & arulrajah, 2014; mishra, 2017; saeed et al., 2019). studies indicate that as employees' environmental awareness and concern increase, they demonstrate more sustainable behavior, such as eating and purchasing environmentally favorable and organic products (ahmed et al., 2020). when organizations create a healthy work environment by engaging in environmental activities and socially responsible behavior, employees begin to engage in the same behaviors, and the health and well-being of workers improve as a result. employees learn how to act socially responsibly, and organizations value their participation in initiatives that improve their well-being. consequently, a positive environment that engages in ecofriendly activities influences and contributes positively to the well-being of workers and fosters green and environmentally conscious behavior. the employees' awareness and comprehension enable them to incorporate agbioforum, 24(3), 2022 | 86 al doghan and zakariya. — developing positive health behavior among employees exploring role of green work environment in… it into their daily activities and form habits based on it. (afsar et al., 2016; ahmed et al., 2020; chan et al., 2014; suárez-varela et al., 2016) indicate that it is possible that awareness about green practices may have no impact on well-being but that an adverse effect is not possible. due to the benefits, businesses emphasize the development of green practices in employee behavior and advance toward incorporating green practices into their systems. (chaudhary et al., 2020). it could take educating and informing them about the methods for developing such behaviors. despite this, when employees practice environmental protection, not only are their work requirements met, but they also receive additional benefits, such as recognition and rewards, an increase in their job satisfaction, and, most notably, an improvement in their physical, mental, and professional well-being. consequently, it aids them in attaining greater work productivity and motivation (fan et al., 2019; kamerde & richardson, 2018; b. zhang et al., 2021). the workers will perceive that their values, such as their capability, selfworth, and strength, increase, leading to their satisfaction and, ultimately, their well-being due to their high selfesteem. additionally, it increases their degrees of happiness (de ruiter et al., 2018; dogan et al., 2013; xiang et al., 2019; b. zhang et al., 2021). in addition, they receive assistance from the workplace environment for implementing these behaviors, which improves their wellbeing because they are better able to engage in green behavior (sun, 2019; b. zhang et al., 2021). developments such as happiness, high morality, improved psychological capital, supportive and assisting behavior, and leadership behavior can enhance worker or individual well-being when green and socially responsible behaviors are exhibited. additionally, this green behavior can facilitate collaboration between individuals and enhance their perception of their life's purpose (athota et al., 2020; choi et al., 2017; tian & robertson, 2019; b. zhang et al., 2021). it has been found that social acts associated with green behaviors have positive effects on contentment, mental well-being, life satisfaction, and the reduction of mental stress and depressive symptoms (binder & freytag, 2013; kahana et al., 2013; li et al., 2013; b. zhang et al., 2021). with awareness of environmentally friendly behaviors and their benefits, workers develop green behaviors that assist them in receiving social benefits, a better image of themselves, and improvement of wellbeing in the form of better physiological and psychological health as well as improvement in career, thereby enhancing their sense of purpose and job satisfaction. h1: green knowledge and awareness has a positive and significant impact on positive health behavior 3.2 impact of environmental concerns on positive health behavior individuals must possess the necessary environmental knowledge to develop an environmental consciousness. without cognizance, it is impossible to take action regarding the environment. as a result of a thorough understanding of its associated problems, employees conduct in an eco-friendly manner and are considerate of it. employees who understand the issues are more likely to develop environmentally conscious behaviors. in addition, they will be unable to comprehend what they can do to address environmental issues and problems (lee, 2010; liu et al., 2020; su & swanson, 2019; wang & noe, 2010; w. zhang et al., 2021). environmental concerns include issues like environmental protection and sustainable practices. they investigate the long-term consequences. in addition, they exhibit consumption behaviors based on these concerns, such as purchasing organic food (brough et al., 2016; chaudhary, 2020; galván-mendoza et al., 2022; marroqun cienda et al., 2019). the psychological concern and emotions regarding such behavior for environmental protection demonstrate their environmental knowledge, which prompted them to become more active and motivated to take action. they maintain their green mental health in this manner (w. zhang et al., 2021). concerns about knowledge, awareness, behavior, and concern have been extensively discussed (marroqun cienda et al., 2019). nonetheless, organizations demonstrating concern for nature and living beings have recognized the deteriorating state of the environment and are attempting to implement practices necessary to improve the environment. they promote and encourage such practices within their culture and employees' conduct. as employees adopt such practices, they engage in recycling, green consumption, organic and eco-friendly food consumption, cycling to work, resulting in healthful physical activity, and maintaining a cleaner environment. they also prioritize harmonizing their personal and professional lives. individual care is a component of sustainable and socially responsible practices (ahmed et al., 2020), and self-care can be regarded as a component of this practice. concern for the environment has been shown to result in such positive outcomes as reduced mental stress and health problems, improved self-image, greater job satisfaction, increased psychological capital, and an enhanced sense of purpose and meaning in life and work (ingrid kaizer mitchell, 2022). nonetheless, numerous studies have demonstrated the positive impact of such practices on the physical, mental, emotional, and psychological health of employees (yang et al., 2017; b. zhang et al., 2021; zhang et al., 2018). however, previous research has not highlighted the direct relationship between a green workplace, green knowledge and awareness, and healthy behavior. the highlighted void requires additional attention and research, which the current study seeks to address. the researcher has observed and assumed, based on prior knowledge and literature review, that as employees gain environmental knowledge and awareness through the green work environment and practices implemented by the employer, they realize and comprehend the need for environmentally agbioforum, 24(3), 2022 | 87 al doghan and zakariya. — developing positive health behavior among employees exploring role of green work environment in… friendly behavior and the poor situation and continuous deterioration of the environment causes them to be concerned not only for the environment but also for themselves, their close relatives, and the future of the planet. based on this relationship and prior investigation, the researcher has developed the following hypothesis: h2: environmental concerns has a positive and significant impact on positive health behavior 3.3 moderating role of employee well-being according to tov (2018), well-being is associated with psychological emotions, satisfaction, and the individual's perception of life quality. ew emphasizes the positive mental health of employees in the workplace. this includes job satisfaction, which indicates employees' mental health (taris & schaufeli, 2018). the experiences and emotions of employees are influenced by leadership at work, supportive behavior, and personal values, which are positively associated with well-being (athota et al., 2020; soni, 2022). (pressman et al., 2015) have highlighted the growing importance of well-being to enhance behavior and have a positive experience. green behavior supports and promotes sustainability within the organization and the environment (francoeur et al., 2021). (ahmed et al., 2020) have evaluated the relationship between well-being and green behavior and found that pro-green behavior can lead to increased well-being among individuals. volunteering and other green activities can reduce psychological tension and increase satisfaction by having a positive effect on an individual's emotions (pinzone et al., 2019). (ahmed et al., 2020) employees who care about the environment are more likely to engage in green behavior for environmental protection. this positively affects self-image and self-esteem, resulting in increased well-being (cheng et al., 2022). additionally, it contributes positively to employees' professions. (yang et al., 2017) environmental concerns promote sustainable development of the environment, which in turn increases well-being. the absence of ecological concerns and organizational development among employees can harm their relationships with coworkers, resulting in diminished emotional experience and diminished well-being. (pinzone et al., 2019) a pro-environmental attitude positively affects the attitude of employees, producing a strong sense of well-being. poor employee well-being, according to researchers, negatively impacts employee health by increasing anxiety and fatigue (sharma et al., 2016). therefore, employee well-being is essential for organizations to promote and enhance their employees' physical and mental health (pradhan & hati, 2021). (kim et al., 2017) companies that promote sustainable behavior and care for the environment can enhance the quality of life for their employees. therefore, a green workplace contributes to enhanced employee health. moreover, this relationship is strengthened when the green workplace correlates with the employees' concerns. the discussion has established that employee well-being is related to green knowledge, awareness, and environmental concerns, which leads to green behavior. the current literature has not evaluated the moderating effect of employee wellbeing in saudi healthcare. consequently, the current study proposes that well-being moderates the relationship between the independent variables, green work environment: knowledge and awareness, and environmental concern, and the dependent variable, positive employee health behavior. the following hypotheses are put forward: h3: employee well-being significantly and positively moderates the relationship between environmental concerns and positive health behavior of employees. h4: employee well-being significantly and positively moderates the relationship between green knowledge and awareness and positive health behavior of employees. figure 1. conceptual framework 4. methodology green workplaces play an essential role in every sector of a country. exploring the green work environment in the context of positive health behavior among employees in the health sector is therefore pertinent and important (francoeur et al., 2020). the health sector's processes and activities significantly impact the environment. the impact is negative; that is, the activities associated with the health sector are harmful to the environment. (kato et al., 2009) there is a need to raise awareness in the health sectors about the green work environment, which significantly impacts positive health behavior. (muster & schrader, 2011) the employees become not only aware of but also learn various types of behaviors, including the "greenwork-life balance concept." therefore, conducting such research on the green work environment is essential to promote healthy behavior in the health industry. this study aims to investigate the positive work behavior agbioforum, 24(3), 2022 | 88 al doghan and zakariya. — developing positive health behavior among employees exploring role of green work environment in… of health sector employees. the significance of a green work environment, green knowledge and awareness, and environmental concerns in the saudi health sector have been investigated. the proposed model incorporates the moderating effect of employee satisfaction. the quantitative method was used to collect data and interpret the results. (merino-saum et al., 2020) a quantitative study is a type of research that seeks to evaluate the research numerically. using questionnaires, the study sought to collect the opinions and experiences of employees. the research also aimed to reach the target population by employing a purposive sampling technique, which made it simpler to collect data for analysis. 4.1 participants and procedures there are many employees in the health sector, but the sample for this research was drawn from the enormous population of health sector employees. the questionnaire survey method was utilized to acquire data from the target population. the questionnaire consisted of two sections. in the first section, the respondents' demographic characteristics are described. it displays the respondent's gender, age, employment status, and level of education. in addition, the second section of the questionnaire comprises items for each study variable. these items are measured utilizing the likert scale. 380 individuals participated in the questionnaire survey. the researcher acquired 333 questionnaires out of a total of 380. the return rate of 87.6% is sufficient for analyzing the data and interpreting the research results. 4.2 measures the conceptualized model incorporates a green work environment, employee well-being, and positive health behavior among saudi arabian health sector employees. the green workplace comprises two dimensions: environmental concerns and green knowledge and awareness. each variable was measured using a unique set of measurement scales. the five-item scale for positive health behavior was adopted from chang et al. (2020) for research purposes. second, the five-item green knowledge and awareness measurement scale was derived from taufique et al. (2014). similarly, environmental concerns were founded on xiao's (2013) list of five items. three items were selected from the scale adapted by su et al. (2019) to measure the well-being of employees. each item was evaluated using a likert scale ranging from 1 (strongly disagree) to 5 (strongly concur). table 1: measurement scales variables no. of items measurement scales positive health behavior of employees 5 (chang et al., 2020) green knowledge and awareness 5 (taufique et al., 2014) environmental concerns 5 (xiao, 2013) employee well-being 3 (su & swanson, 2019) 5. results 5.1 demographic characteristics of respondents the socio-demographic context of the sample is displayed in table 2. the data was collected from saudi arabia's health sector. the researcher initially distributed 420 questionnaires and received 380 responses, resulting in a response rate of 90.4% from a total of 333 respondents. following an initial evaluation of the data, 33 responses were eliminated due to missing values, leaving 333 respondents in the final sample. 182 males out of the total population responded to the questionnaire, representing a participation rate of 54.7%, while 151 females responded, representing a response rate of 45.3%. according to table 2, most employees were between 26 and 30. these employees numbered 131, or 39.3% of the total. similarly, 145 employees, or 43.5% of the total workforce, had between 6 and 10 years of experience. other demographic groups included 32.4% of employees under 25, 23.7% of employees between the ages of 31 and 35, and 4.5% of employees older than 35. the educational background of the employees revealed that 49.2% had bachelor's degrees, 25.2% had master's degrees, and 21.9% had intermediate degrees. these results indicate that the sample consisted primarily of men in their early to midtwenties with extensive work experience and a high level of education. the presence of education and vast experience suggested that the sample could respond adequately to the research instrument. table 2: demographic background number percentage gender male 182 54.7 female 151 45.3 age less than 25 years 108 32.4 26-30 years 131 39.3 31 to 35 years 79 23.7 more than 35 years 15 4.5 employee status 0 to 5 years 46 13.8 6 to 10 years 145 43.5 11 to 15 years 111 33.3 more than 15 years 31 9.3 education intermediate 73 21.9 bachelors 164 49.2 masters 84 25.2 others 12 3.6 5.2 descriptive summary the descriptive and summary statistics for the research variables are presented in table 3. each of the study's variables' means, standard deviations, and skewness are provided in the descriptive summary. it indicates that there was a total of 333 respondents in the study. since the number of respondents listed for each variable is identical, it can be concluded that there are no missing data values. the data's maximum and minimum values are depicted in the table, and it is evident that the endpoints correspond to the scale's endpoints. it can therefore be concluded that there were no outliers in the data. the mean values for green knowledge awareness, environmental concerns and positive health behaviors, and employee well-being were 3.19, 3.25, 3.28, and 3.31, respectively, indicating a positive response pattern. lastly, the skewness statistics agbioforum, 24(3), 2022 | 89 al doghan and zakariya. — developing positive health behavior among employees exploring role of green work environment in… demonstrated the existence of normality, as all variables have values between -1 and 1. as a result, there were no preliminary issues with the data, and further testing was conducted to evaluate the causal associations. table 3: descriptive summary n minimum maximum mean std. deviation skewness statistic statistic statistic statistic statistic statistic std. error gka 333 1.00 5.00 3.1940 1.07073 -.237 .134 ec 333 1.00 5.00 3.2462 1.09287 -.282 .134 phbe 333 1.00 5.00 3.2781 1.22284 -.228 .134 ew 333 1.00 5.00 3.3146 1.18924 -.241 .134 valid n (listwise) 333 gka= green knowledge and awareness, ec= environmental concerns, and phbe= positive health behavior of employees, ew= employee well-being 5.3 kmo and bartlett's test data is considered suitable and valid when the value of the sampling adequacy test is above 0.6; therefore, the value here is 0.958, which represents good adequacy. below is provided table 4, which presents the results of kmo and bartlett's test. table 4: kmo and bartlett's test kmo and bartlett's test kaiser-meyer-olkin measure of sampling adequacy. .910 bartlett's test of sphericity approx. chi-square 12634.790 df 153 sig. .000 5.4 rotated component matrix the exploratory factor analysis was conducted to evaluate the factor loadings, as they indicate the presence of individual scale item variability. table 5 demonstrates loadings are more significant than 0.5; consequently, each construct is unidimensional. each component is loaded onto the structure to which it applies. table 5: rotated component matrix gka= green knowledge and awareness, ec= environmental concerns, and phbe= positive health behavior of employees, ew= employee well-being 5.5 convergent & divergent validity analysis the factor analysis aimed to examine the convergent and divergent validity of the study's measures. (hair et al., 2021; holton iii et al., 2007) table 6 demonstrates that convergent validity has been obtained, indicating that the measurement of the construct conforms (ave > 0.6, cr > 0.8). each of the four constructs is distinct based on the values of each subsequent row and column of variables. table 6: validity analysis cr ave msv maxr(h) phb gk ecc ew phb 0.989 0.945 0.960 0.998 0.972 gka 0.902 0.650 0.719 0.925 0.775*** 0.806 ecc 0.922 0.709 0.960 0.973 0.980*** 0.788*** 0.842 ew 0.910 0.772 0.719 0.923 0.554*** 0.848*** 0.566*** 0.879 gka= green knowledge and awareness, ec= environmental concerns, and phbe= positive health behavior of employees, ew= employee well-being 5.6 confirmatory factor analysis the confirmatory factor analysis aimed to assess the reliability of the measurement model. various measurements are collected during the confirmatory factor analysis. the min/df and rmsea have been calculated to have values greater than 3 and 0.08, respectively. in contrast, the value for gfi is less than 0.80, the value for ifis is less than 0.90, and the value for cfi is less than 0.90. all of these measurements indicate that the data is appropriate for conducting research. the statistics from the measurement model depicted in figure 2 are listed in the table 7 below. table 7: results of cfa cfa indicators cmin/df gfi ifi cfi rmsea threshold value ≤ 3 ≥ 0.80 ≥ 0.90 ≥ 0.90 ≤ 0.08 observed value 2.239 0.822 0.924 0.987 0.078 figure 2: confirmatory factor analysis component 1 2 3 4 gka1 .710 gka2 .767 gka3 .830 gka4 .757 gka5 .647 ec1 .814 ec2 .819 ec3 .891 ec4 .899 ec5 .904 phbe1 .901 phbe2 .905 phbe3 .899 phbe4 .903 phbe5 .906 ew1 .601 ew2 .818 ew3 .842 agbioforum, 24(3), 2022 | 90 al doghan and zakariya. — developing positive health behavior among employees exploring role of green work environment in… 5.7 structural equation model the research hypotheses are validated using a structural model, the results of which are presented in the table below. sem is a widely-used method for assessing the structural relationships between latent and observed variables (hair et al., 2020). in addition, it permits testing multiple relationships simultaneously and is used to determine the optimal model (mai et al., 2018; westland & westland, 2015). path coefficients allow for the validation of the research's proposed hypotheses. the table demonstrates that employees' green knowledge, awareness, and positive health behavior have a significant but negative correlation at a significance level of 0.05, confirming the first hypothesis. in the table below, p 0.05 indicates that there is also a positive relationship between environmental concerns and the positive health behaviors of employees. therefore, the first two hypotheses are accepted and confirmed with positive signals where p 0.05 for both relationships. second, we investigated the moderating role of employee well-being. according to table 8, employee well-being moderates the relationship between phbe and ec with a p-value of less than 0.05. similarly, employee well-being moderates the relationship between phbe and gka with a p-value less than 0.05. figures 4 and 5 demonstrate that ew has a significant moderating effect. figure 4 demonstrates that ew weakens the positive association between ec and phbe, as confirmed by = -0.437 in table 8. figure 5 depicts the substantial moderating effect of ew, which results in a 53.8% shift in the correlation between gka and phbe, as shown in table 8. table 8: structural equation modeling parameter estimate lower upper p phbe <--gka -.117 -.200 -.003 .059 phbe <--ec 1.044 .953 1.117 .015 zphb <--zewxec -.437 -.987 -.074 .042 zphb <--zewxgka .538 .068 1.170 .049 gka= green knowledge and awareness, ec= environmental concerns, and phbe= positive health behavior of employees, ew= employee wellbeing figure 3: sem figure 4: moderation effect of ew between ec and phbe figure 5: moderation effect of ew between gk and phbe 6. discussion researchers and global policymakers of organizations have acknowledged that the causes of environmental deterioration, such as biodiversity loss and rising pollution, are profoundly rooted in human behavior, which has a profound effect on employees' health behavior. numerous organizations today implement environmental management systems (ems) and green initiatives to reduce their operations' negative impact on the environment. in this regard, this study investigated the effect of a green workplace on the health behavior of saudi healthcare workers. based on the research objectives and a comprehensive review of empirical studies, this study developed four hypotheses stating that green knowledge and awareness (gka) and environmental concerns (ec) 1 1.5 2 2.5 3 3.5 4 4.5 5 low ecc high ecc p h b e moderator low ew high ew 1 1.5 2 2.5 3 3.5 4 4.5 5 low gk high gk p h b e moderator low ew high ew agbioforum, 24(3), 2022 | 91 al doghan and zakariya. — developing positive health behavior among employees exploring role of green work environment in… positively influence the positive health behavior of employees. the other two hypotheses assessed the moderating effect of employee well-being on the association between gka and phbe and ec and phbe. the study's outcome supported both hypotheses and revealed a significant effect of gka and ec on employee behavior. ew moderated both relationships significantly. numerous additional studies validate this study's ecological knowledge and awareness findings. saeed et al. (2019) notes that green environmental knowledge and cognizance influence employee decisions and intentions. employee knowledge of green environmental management influences their health behavior and their proenvironmental conduct in the workplace. thus, employee interaction and knowledge increase their participation in environmentally responsible behavior. according to fawehinmi et al. (2020), green human resource management significantly impacts employees' green behavior, whereas green knowledge significantly strengthens this relationship. elshaer et al. (2023) investigated ecological knowledge and management practices in tourism-related small and medium enterprises. the study's findings indicate that green knowledge and management policies improve employees' social, economic, and environmental performance, and employees' pro-environmental behavior strengthens this relationship. therefore, active employee participation in green knowledge and practices is recommended for optimal health and environmental behavior. amrutha et al. (2020) note that green workplace practices substantially impact the social equity, health, and well-being requirements of organizations and their employees to attain environmental and economic sustainability. prioritizing green awareness and knowledge safeguards the well-being and health of employees to maximize the potential of green practices at their foundation. subsequently, the findings of existing studies validated the findings of this study and identified a significant impact of gka on the positive health behavior of employees. this study demonstrates that environmental concerns (ec) positively influence the positive health behavior of employees. al-swidi et al. (2021) emphasize the significance of environmental concerns and green human resource management on organizational culture, supported by numerous other studies. this ecological organizational culture has additional positive effects on employees' positive behavior and performance. zhang et al. (2019) demonstrate that environmental concerns influence the autonomous motivation of employees and their proenvironmental behaviors, which substantially affects their health and environmental behavior. ul mateen et al. (2022) demonstrate that environmental concerns influence ghrm and enhance healthcare employees' positive and pro-environmental behavior. according to pieper et al. (2019), employees' positive health behavior and wellbeing are significantly related to work environment factors. according to kim et al. (2016), environmental concern is substantially associated with employees' proenvironmental behavior, and external motivation plays a positive role in strengthening this association. additionally, ec influences employee behaviors that increase their desire to protect the environment and implement green workplace policies and practices. umrani et al. (2020) asserts that the positive behavior of employees in a company is essential for that company to achieve environmental outcomes. the study revealed that environmental concerns and a sense of responsibility are statistically significant for employees' positive health behavior. the correlation between green human resource management and employee performance is strengthened when employees are more environmentally conscious. accordingly, the findings of this study confirm that ec positively influences employees' positive healthcare behavior. in addition, our results supported the moderating role of ew in the relationship between gka and phbe. previous research has demonstrated that environmental knowledge increases well-being (ahmed et al., 2020), whereas environmental awareness has no significant effect on well-being (ahmed et al., 2020). however, increased employee happiness has a positive effect on phbe. it has been stated that a change in well-being can influence health behavior and vice versa, where a positive change in health behavior results in improved well-being, and an adverse change in health behavior harms well-being (wieneke et al., 2019). consequently, our findings are consistent with prior research (ahmed et al., 2020; wieneke et al., 2019). we found that ew moderates the relationship between ec and phbe significantly. previous research has found that environmental concerns and employee well-being significantly impact employee health behavior (ahmed et al., 2020). our findings are consistent with these findings. similarly, another study found that the connection between employee well-being and corporate responsibility is tied to employees' environmental concerns (bocean et al., 2022). the relationship between environmentallytransformational leadership and employee well-being is mediated by pro-environmental behavior, as demonstrated by soni (2022). 7. conclusion this study investigated the effect of a verdant work environment on the positive health behaviors of saudi healthcare workers. consequently, two dimensions of the green work environment, namely green knowledge and awareness (gka) and environmental concerns (ec), along with the moderating function of employee well-being (ew), were investigated. to obtain an effective conclusion, this study surveyed saudi employees. the information was gathered from 333 respondents. after fruitful data analysis, the study's findings revealed that gka and ec positively influence employees' health behavior, with ew having a significant moderating effect. the successful results shed light on establishing a green work environment to encourage employees' positive health agbioforum, 24(3), 2022 | 92 al doghan and zakariya. — developing positive health behavior among employees exploring role of green work environment in… behaviors and create an environmentally friendly workplace. the findings reveal the urgent need for programs and policies that encourage adopting a green work environment in the healthcare sector to attain optimal employee health behavior. 8. theoretical and practical implications this research makes a substantial contribution to researchers and practitioners. this study investigates the factors that motivate the positive health behavior of healthcare employees as its theoretical contribution. this study contributes to the extant literature on green work environments and the environmental behavior of organizations by identifying the positive effects of gka and ec. in addition, this research contributes to our understanding of the positive health behavior of healthcare employees, a topic that receives scant attention in the existing literature. it offers theoretical guidance regarding the function of ew in the healthcare workplace. in terms of its practical implications, this study is noteworthy for administrators of healthcare organizations, as the pertinent findings encourage them to promote a green work environment within their organizations. the relevant industry practitioners must increase the implementation of environmentally favorable hrm procedures. the recruitment process's job description and employment design must include gka and ec integration. environmental concerns will result in healthier employee behavior, thereby enhancing their well-being. in addition, employees must increase their ecological knowledge and environmental awareness to promote healthy behavior. lastly, the findings of this study provide policymakers with valuable information for enhancing the opportunities and resources to promote green workplace schemes to address environmental issues and promote proenvironmental and healthy employee behavior. 9. limitations and future research indications even though the present study has accomplished its objectives, it has numerous limitations. initially, the data was collected from the saudi healthcare industry, which imposes geographical restrictions. this deficiency can be remedied by collecting data from multiple locations that provide valuable insight into green work environments and validate the generalizability of acquired results in future research. second, the data was collected through employee self-reported surveys, so the obtained results were limited to a single source. other studies utilize data from multiple sources, such as firm managers and practitioners, to address this deficiency. lastly, while the study included employee well-being as the moderator, other variables, such as green commitment and green lifestyle, help to explain the effect of a green work environment on employees' health behavior. 10. acknowledgment this work was supported by the deanship of scientific research, vice presidency for graduate studies and scientific research, king faisal university, saudi arabia [grant 3266]'. references afsar, b., badir, y., & kiani, u. s. 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most studies on today's 'climate change' means. 2. know very well what the term items' global warming' means. 3. the amount of energy i use does not affect the environment to any significant degree. 4. the country needs more restrictions on residential development (construction of a new mall on farmland, new subdivisions, etc.). 5. i know very well what the term' organic product' means. environmental concern (xiao, 2013) 1. the balance of nature is very delicate and easily upset by human activities. 2. plants and animals do not exist primarily to be used by humans. 3. no limits to growth for advanced industrialized nations. 4. the earth is like a spaceship with only limited room and resources. 5. the so-called "ecological crisis" facing mankind has been greatly exaggerated. employee well-being (su & swanson, 2019) rate as strongly dissatisfied to strongly satisfied: 1. how would you rate your quality of life? 2. how satisfied are you with yourself? 3. how satisfied are you with your capacity for work? positive health behaviour of employees (chang et al., 2020) in your company, 1. supporting environment, including sports and healthy die, psychological health is prioritized. 2. employee attitude matter on company's policy on health promotion is crucial. 3. health climate at work and work-life balance is important. 4. supervisors' attitude toward health promotion is encouraged. 5. own health involvement in worksite health promotion is encouraged. agbioforum, 25(1): 215-228. ©2023 agbioforum research on the environmental effects of foreign direct investment: taking environmental regulations as adjusting variable danqing chen* phd, school of management and marketing, faculty of business and law, taylor’s university, selangor, 47500, malaysia phd, faculty of business, zhengzhou university of economics and business, zhengzhou,451191, china email: cdq202308@163.com, orcid: https://orcid.org/0009-0009-0779-6500 xinxu zhao phd, school of management and marketing, faculty of business and law, taylor’s university, selangor, 47500, malaysia email: zhaoxinxu20@163.com, orcid: https://orcid.org/0000-0002-6294-1370 sha wu phd, faculty of business phd, graduate business school, ucsi university,kuala lumpur, 56000, malaysia phd, faculty of business, zhengzhou university of economics and business, zhengzhou,451191, china email: m18737116660@163.com, orcid: https://orcid.org/0009-0007-7615-1613 *corresponding author email: cdq202308@163.com foreign direct investment (fdi) has the potential to significantly contribute to the advancement of environmental sustainability through its ability to motivate enterprises to embrace environmentally friendly practises and facilitate the growth of renewable energy and green technologies inside the recipient nation. the objective of this study is to investigate the determinants influencing foreign direct investment (fdi) and environmental performance, as well as the impact of environmental rules and environmental concern on these underlying elements. the researchers employed online purposive convenience sampling to gather data from a sample of 329 company executives and managers who are affiliated with financial institutions and investors engaged in foreign direct investment (fdi) activities in china. partial least squares structural equation modelling (pls-sem) is a statistical technique that is commonly used in social science research to analyse complex relationships between latent variables. partial least squares structural equation modelling (pls-sem) proves to be particularly advantageous in cases where the sample size is limited or when the data fails to meet the assumptions of conventional structural equation modelling. in this work, pls-sem was employed to examine and evaluate the proposed study model. the findings indicate a statistically significant relationship between the path coefficient of 0.82 and the impact of factors influencing foreign direct investment (fdi) on environmental performance. the imposition of environmental regulations has a detrimental impact on the correlation between variables influencing foreign direct investment (fdi) and environmental performance. this implies that more stringent environmental regulations have the potential to deter foreign direct investment. promoting environmental conservation can serve as an effective means of managing the interplay between variables influencing foreign direct investment (fdi) and environmental sustainability. this implies that investors that prioritise environmental preservation are inclined to allocate their investments towards environmentally beneficial initiatives. furthermore, the presence of environmental protection serves as a mediator in the connection between many determinants influencing foreign direct investment (fdi) and the overall environmental performance. this study contributes to the existing body of information by examining the relationship between environmental regulations, a sense of environmental protection, foreign direct investment (fdi), and environmental performance. keywords: foreign direct investment, environmental performance, environmental regulations, sense of environmental protection, environmental sustainability. introduction china's rapid economic advancement in recent decades has come at a significant expense to the environment. the nation has emerged as the world's foremost producer of greenhouse gases and a substantial contributor to global environmental challenges (wang & su, 2020). throughout this trajectory, foreign direct investment (fdi) has played a pivotal role in propelling china's economic expansion (xie, wang, & cong, 2020). nevertheless, apprehensions have emerged regarding china's capacity to achieve sustainable development due to the adverse environmental impacts attributed to fdi (guo, tong, & mei, 2020). consequently, there exists a growing imperative to mitigate the unfavorable environmental effects of fdi within china, all while fostering enduring growth prospects (liu et al., 2021). a multitude of research studies have scrutinized the environmental consequences resulting from foreign direct investment (fdi) in china. these investigations have focused on diverse factors, encompassing technology transfer, compliance with environmental regulations, and the degree of environmental awareness within local communities (xiao et al., 2023). some research has indicated that fdi possesses the potential to exert a favourable environmental influence by catalysing the adoption of eco-friendly technologies and practices (feng et al., 2022). notably, foreign corporations can introduce advanced technologies and managerial strategies that contribute to curbing pollution and optimizing resource utilization (dissanayake & weerasinghe, 2021). on the contrary, alternative studies have spotlighted the adverse environmental implications linked to fdi, including escalated pollution levels and heightened resource depletion (balcilar, usman, & ike, 2023; gyamfi, agozie, & bekun, 2022). mailto:cdq202308@163.com https://orcid.org/0009-0009-0779-6500 mailto:zhaoxinxu20@163.com https://orcid.org/0000-0002-6294-1370 mailto:m18737116660@163.com https://orcid.org/0009-0007-7615-1613 mailto:cdq202308@163.com agbioforum, 25(1), 2023 | 216 chen, zhao, wu — research on the environmental effects of foreign direct investment research has demonstrated that environmental regulations play a pivotal role in shaping the environmental outcomes of foreign direct investment (fdi) in china (ayamba et al., 2020). environmental laws, which establish guidelines and prerequisites for safeguarding the environment, have the potential to ameliorate the adverse environmental impacts associated with fdi (gao, li, li, & gao, 2022). nevertheless, the efficacy of environmental regulations in fostering environmental protection is contingent upon various factors, including the extent of enforcement, the rigor of the regulations, and the prevailing political and economic landscape (dong, wang, zhang, & shen, 2022). additionally, local communities' attitudes towards environmental protection have emerged as a pivotal determinant of the environmental outcomes resulting from fdi in china (li, xue, & qin, 2022). these communities can actively advocate for more stringent environmental regulations and hold foreign enterprises accountable for their environmental performance (li et al., 2021). however, the relationship between environmental protection and the environmental performance of foreign firms is intricate and influenced by diverse factors such as cultural, social, and economic considerations (asiaei, bontis, alizadeh, & yaghoubi, 2022). despite an increasing body of study about the environmental consequences of foreign direct investment (fdi) in china, there remains a significant knowledge gap on the complex interconnections among fdi, environmental regulations, environmental protection, and environmental performance (qiu, wang, & geng, 2021). the present investigation aims to contribute to the existing literature by examining the impact of environmental legislation and individuals' environmental protection attitudes on the relationship between foreign direct investment and environmental performance in china (wu & lin, 2022). the objective of this study is to examine the interplay between various elements in order to develop policies and strategies that facilitate sustainable growth and mitigate the adverse environmental impacts associated with foreign direct investment (fdi) in china (wu et al., 2020). literature review theoretical background foreign direct investment (fdi) has emerged as a significant avenue for countries like china to foster economic growth (fan & hao, 2020). while fdi offers numerous benefits to host countries, including job creation, technology sharing, and economic expansion, it also presents environmental challenges (bai et al., 2020). consequently, extensive research has been conducted to understand the diverse ways in which fdi impacts the global landscape under varying circumstances (agboola, hossain, gyamfi, & bekun, 2022). to counteract the adverse environmental effects of fdi, environmental laws have been advocated as a vital policy tool (deng et al., 2022). these regulations are intended to oversee and supervise the activities of foreign enterprises operating within host countries (coenen et al., 2021). however, the effectiveness of such regulations in mitigating detrimental environmental impacts is contingent on various factors, including the strictness of regulations, the quality of regulatory enforcement, and the prevalence of corruption (chu & tran, 2022). another dimension influencing the environmental ramifications of fdi is the degree of environmental consciousness within local communities (yu, 2021). communities with a heightened awareness of environmental protection are likely to exert greater pressure on foreign enterprises to adhere to environmental laws and curtail negative environmental repercussions (zhao, zhang, sun, & he, 2022). in china, research has been conducted on the environmental consequences stemming from foreign direct investment (fdi) (erdoğan et al., 2021). however, there exists a gap in the literature pertaining to the roles that environmental regulations and a sense of environmental protection play in mitigating the environmental impacts linked to fdi (rej et al., 2023). consequently, the objective of this study is to assess the environmental outcomes arising from fdi in china. this examination will encompass an exploration of the moderating influence of environmental regulations and will also delve into the mediating and moderating roles played by a sense of environmental protection (xiao et al., 2023). environmental performance within this study, the pivotal dependent variable is environmental performance. the term "environmental performance" in the context of foreign firms pertains to the degree to which these entities mitigate their detrimental environmental effects while concurrently augmenting their favorable environmental contributions (awawdeh, ananzeh, el-khateeb, & aljumah, 2021). environmental performance represents a multifaceted concept encompassing diverse metrics, including but not limited to, greenhouse gas emissions, waste management practices, energy utilization, water consumption patterns, and strategies for pollution control (chin et al., 2022). in response to escalating concerns regarding the ecological consequences of economic operations, the environmental performance of global corporations has gained heightened prominence in recent times (rehman et al., 2021). research underscores that the environmental performance of foreign enterprises can exert significant ramifications on their economic outcomes, public image, and commitment to social responsibility (shabbir & wisdom, 2020). investigations indicate that international corporations with superior environmental performance tend to exhibit enhanced financial achievements, diminished environmental obligations, and a more robust reputation for fulfilling their social responsibilities (ahmad et al., 2021; nguyen, elmagrhi, ntim, & wu, 2021). factors influencing foreign direct investment within this study, the variables exerting influence over foreign direct investment (fdi) are regarded as independent variables. these variables are categorized into economic, institutional, and cultural dimensions. extensive research has substantiated the significance of economic factors in shaping fdi inflows. factors such as market size, labor costs, and infrastructural development have been identified as crucial determinants of fdi inflow patterns (bacovic, jacimovic, lipovina bozovic, & ivanovic, 2021; ngo, cao, nguyen, & nguyen, 2020). for agbioforum, 25(1), 2023 | 217 chen, zhao, wu — research on the environmental effects of foreign direct investment instance, the research conducted by chang et al. (2022) revealed a positive correlation between market size and infrastructure quality with fdi inflows in the context of china. moreover, economic considerations encompass natural resource availability, technological competencies, and tax incentives, all of which hold the potential to influence the trajectory of fdi inflows (gyamfi, agozie, & bekun, 2022). institutional factors encompassing aspects such as institutional quality, corruption levels, and the rigor of environmental regulations have also emerged as pivotal predictors of foreign direct investment (fdi) inflows (ross, omar, xu, & pandey, 2019). institutional quality and corruption have been demonstrated to exert an adverse influence on fdi inflows. conversely, stringent environmental regulations have been shown to stimulate fdi in industries with environmental sensitivities (usman & jahanger, 2021). notably, liu et al. (2022) indicated that china's stringent environmental regulations have acted as a magnet for fdi in the green industry. language barriers, cultural disparities, and varying degrees of environmental consciousness have likewise been identified as factors impacting fdi inflows (feng, wu, & fu, 2021). the cultural distinctions between china and foreign corporations could pose considerable obstacles for the transfer of green technology to china by foreign entities (petti, spigarelli, lv, & biggeri, 2021). according to a previous study it is emphasized that the level of environmental awareness within international enterprises can substantially influence their environmental performance in the chinese context (wen, lee, & song, 2021). environmental regulations within this study, environmental regulations fulfil the role of moderators. environmental regulations encompass legal frameworks and standards governing the environmental implications of economic operations (arocena, orcos, & zouaghi, 2021). the efficacy of these regulations in curtailing detrimental environmental effects is influenced by a myriad of factors, including the strictness of regulations, the calibre of regulatory enforcement, and the extent of corruption (riti, shu, & kamah, 2021). numerous research studies have been undertaken to explore the function of environmental regulations in mitigating the adverse environmental repercussions of economic activities (nathaniel, murshed, & bassim, 2021). for instance, revealed through a previous study environmental regulations wield a substantial influence in curbing carbon emissions in china (xuan, ma, & shang, 2020). in a similar vein, elmagrhi, ntim, elamer, and zhang (2019) found that environmental regulations had a beneficial impact on the environmental performance of chinese enterprises. environmental regulations play a pivotal role in mitigating the environmental consequences resulting from foreign direct investment (fdi) in china. the nation has grappled with substantial environmental challenges due to rapid economic expansion and industrialization (ahmed, asghar, malik, & nawaz, 2020). to confront these issues and advance sustainable development, the chinese government has introduced a range of environmental laws and initiatives (xu et al., 2020). nonetheless, the efficacy of these regulations is often impeded by inadequate enforcement and instances of corruption (senu, 2020). sense of environmental protection the concept of environmental protection serves as both a mediator and a moderator variable in the context of this research (das, biswas, abdul kader jilani, & uddin, 2019). the construct denoting the extent of knowledge and concern among local communities regarding environmental matters is commonly known as their environmental protection consciousness (sanchez-sabate & sabaté, 2019). according to zhao, zhang, sun, and he (2022), local populations that possess a robust commitment to environmental preservation are more likely to exert greater influence on international firms, compelling them to adhere to environmental regulations and address adverse environmental consequences. several studies have provided evidence indicating that the environmental performance of multinational corporations can be substantially influenced by the level of environmental consciousness within local populations (pham, thanh, tučková, & thuy, 2020). it discovered a positive correlation between the environmental performance of foreign enterprises and the sense of environmental preservation among local chinese residents (li et al., 2021). the presence of an environmental protection mindset may serve as a moderating factor in the association between environmental legislation and the environmental performance of foreign firms (hameed et al., 2020). as per a previous study it is suggest that the environmental performance of chinese firms can be enhanced by the presence of environmental regulations, particularly when local residents exhibit a heightened care for the environment. this assertion is further supported by jia and chen (2019). the relationship between foreign direct investment (fdi) and environmental performance can be influenced by an individual's level of environmental protection awareness (li & ramanathan, 2020). the influence of local populations' sense of environmental protection on the correlation between foreign direct investment (fdi) and the environmental performance of chinese enterprises may be significant (an, xu, & liao, 2021). in summary, the study conducted by an, xu, and liao (2021) emphasises the significance of the four variables under investigation in order to gain a comprehensive understanding of the environmental implications associated with foreign direct investment (fdi) in china. the environmental performance of foreign enterprises is a significant dependent variable, with fdi, environmental regulations, and a perception of environmental protection serving as key independent predictors of the environmental performance of foreign firms (ahmadova, bueno garcía, delgado-márquez, & pedauga, 2022). the findings of this study carry significant significance for policymakers and stakeholders who are concerned with advancing sustainable development and mitigating the adverse environmental impacts associated with foreign direct investment (fdi) in china (avotra et al., 2021). agbioforum, 25(1), 2023 | 218 chen, zhao, wu — research on the environmental effects of foreign direct investment hypotheses development the present investigation examines the intricate interconnections of foreign direct investment (fdi), environmental regulations, the perception of environmental safeguarding, and environmental performance within the context of china (liu & zhu, 2022). the present study aims to examine the moderating and mediating roles played by environmental legislation and the perception of environmental protection in the relationship between foreign direct investment (fdi) and environmental performance (uche, das, bera, & cifuentes-faura, 2023). hypothesis 1 (h1) asserts that factors influencing foreign direct investment (fdi) have a significant influence on environmental performance. the aforementioned theory aligns with a previous research investigation that shown the influence of many aspects, including industry, company size, and level of technological utilisation, on the environmental performance of international enterprises (li, dai, & cui, 2020). it is probable that foreign corporations engaged in resource-intensive or polluting industries would exert a greater environmental influence compared to firms operating in industries that are less resource-intensive or polluting (cai et al., 2020). in a similar vein, it might be argued that larger corporations, endowed with greater resources, are more prone to have a detrimental impact on the environment compared to smaller enterprises (d'amato & falivena, 2020). in accordance with hypothesis 2 (h2), there is a notable impact of environmental constraints on the connection between the factors that influence foreign direct investment (fdi) and environmental sustainability. a prior investigation has showcased that environmental regulations have the potential to alleviate the adverse environmental consequences of fdi (zhuang, yang, razzaq, & khan, 2022). nevertheless, the efficacy of these regulations in fostering environmental safeguarding could be influenced by multiple variables, such as the degree of enforcement, the strictness of the regulations, and the socio-political and economic backdrop (yin, chang, & wang, 2022). consequently, this hypothesis posits that in cases where environmental regulations are more stringent and effectively enforced, the correlation between the factors influencing fdi and environmental performance is likely to be more robust (long, luo, sun, & zhong, 2023). hypothesis 3 (h3) suggests that a pronounced sense of environmental stewardship influences the interaction between foreign direct investment (fdi) and environmental sustainability. indigenous communities play a role in advancing environmental conservation by advocating for more stringent ecological regulations and ensuring that foreign corporations uphold their environmental commitments (chen, zhou, & ma, 2022). consequently, this hypothesis asserts that the relationship between the determinants impacting fdi and environmental performance could be more robust when local inhabitants possess a heightened sense of environmental preservation (long, luo, sun, & zhong, 2023). hypothesis 4 (h4) asserts that the degree of environmental consciousness plays a vital mediating role in the connection between the factors influencing foreign direct investment (fdi) and environmental sustainability. as per this hypothesis, the extent to which local communities prioritize environmental preservation could function as a mediator between the factors influencing fdi and environmental performance (he et al., 2022). this concept aligns with earlier research that unveiled the influence of the local population's environmental awareness on the ecological performance of foreign corporations operating within china (li et al., 2020). in essence, the hypotheses proposed in this research build upon existing studies and seek to enhance our comprehension of the intricate connections existing among foreign direct investment (fdi), environmental regulations, environmental safeguarding, and environmental performance in china (wu & lin, 2022). the primary objective of this study is to offer valuable insights that can contribute to the formulation of effective policies and strategies aimed at fostering sustainable development and minimizing the adverse environmental repercussions associated with fdi in china. this is achieved by investigating the moderating and mediating roles played by environmental regulations and the sense of environmental preservation in shaping the relationship between fdi and environmental performance (see figure 1). h1. factors influencing fdi significantly impact on environmental performance. h2. environmental regulations significantly moderates the relationship of factors influencing fdi and environmental performance. h3. sense of environmental protection significantly moderates the relationship of factors influencing fdi and environmental performance h4. sense of environmental protection significantly mediates the relationship of factors influencing fdi and environmental performance. figure 1. conceptual model agbioforum, 25(1), 2023 | 219 chen, zhao, wu — research on the environmental effects of foreign direct investment methodology the objective of this study was to delve into the intricate relationships among foreign direct investment (fdi), environmental regulations, environmental conservation, and environmental performance within the context of china. data was gathered through an online survey involving 329 fdi investors operating in china. this section provides an extensive overview of the research methodology adopted in this study. the study employed a cross-sectional survey approach, which is well-suited for examining correlations between various variables within a specific population during a particular timeframe (spector, 2019). this survey design facilitated the collection of data from a substantial number of respondents spanning different regions across chin. the study utilized purposive convenience sampling to select the sample for the research. participants were specifically chosen based on their involvement in foreign direct investment (fdi) endeavours in china. eligibility criteria dictated that participants needed to be foreign investors operating in china and engaged in fdi activities for a minimum of one year. the participants were contacted through online means and invited to partake in the survey. data collection was carried out through an online questionnaire, which was made available across various internet platforms, including linkedin and wechat. respondents willingly completed the survey, and to facilitate a broader range of participation, the survey was offered in both english and chinese languages. the variables employed in this study were adapted from previous research. the measurement scales for these variables were established based on well-recognized instruments and had been validated in prior studies. for instance, oreja-rodríguez and armas-cruz (2012) introduced a five-item scale to gauge environmental performance. similarly, the seven-item scale developed by ali ibrahim, eltayeb mohamed abdel-gadir, and devesh (2019) was utilized to evaluate the factors influencing foreign direct investment (fdi). to assess environmental policies, the seven-item scale by ramli and sobre ismail (2013) was employed. moreover, he, zhuang, lin, and zheng (2017) formulated a six-item scale to measure individuals' sense of environmental preservation. the collected data underwent analysis using pls-sem 4.0. pls-sem stands for partial least squares structural equation modelling, which is a robust technique for multivariate data analysis, particularly adept at exploring intricate relationships among variables. the smartpls 3.0 software was utilized for conducting the pls-sem analysis, as documented by memon et al. (2021). the analytical process encompassed various stages, including assessing the reliability and validity of the measurement scales, validating the structural model, and investigating the moderating and mediating effects of environmental regulations and the perception of environmental protection. throughout the research, ethical standards and principles were strictly adhered to. participants were thoroughly informed about the study's objectives, their rights, and the confidentiality of their responses. each participant provided informed consent before taking part in the study. the data collected from participants was treated with confidentiality and solely employed for the study's intended purposes. statistical analysis and results the reliability analysis results, as indicated by cronbach's alpha coefficients, for the four variables under investigation are presented in the table. cronbach's alpha is a well-recognized measure of internal consistency reliability, gauging the extent to which items within a scale or instrument exhibit coherence and consistency. in the context of this study, the cronbach's alpha coefficient for the environmental performance variable was calculated to be 0.840. this high coefficient value signifies a high degree of internal consistency and reliability among the items comprising the environmental performance scale. consequently, it affirms the accuracy and dependability of the scale in effectively measuring the intended construct. the cronbach's alpha coefficient for the environmental regulations variable yielded a value of 0.763, indicating a moderate level of internal consistency reliability. this implies that while some elements within the scale exhibit strong interrelatedness, others may have comparatively weaker connections. however, it is important to note that the alpha coefficient surpasses the commonly accepted threshold of 0.7, underscoring the reliability of the scale. for the factors influencing fdi variable, the calculated cronbach's alpha coefficient was 0.935, reflecting a substantial level of internal consistency reliability. this outcome suggests a high degree of coherence and reliability among the items comprising the scale designed to measure factors influencing foreign direct investment. similarly, the sense of environmental protection variable exhibited a cronbach's alpha coefficient of 0.861, signifying a high level of internal consistency reliability. this indicates that the scale used for measuring the sense of environmental protection is also highly dependable. collectively, the results from the reliability analysis affirm the trustworthiness of all the scales employed in the study. these scales can be reliably utilized to assess the constructs of interest, which lends support to the validity of the study's conclusions and the potential for using these measures in future research endeavours (refer to table 1). table 1. cronbach alpha cronbach's alpha environmental performance 0.840 environmental regulations 0.763 factors influencing fdi 0.935 sense of environmental protection 0.861 the provided table presents the outcomes of the confirmatory factor analysis (cfa) conducted for the four variables under investigation: environmental performance, environmental regulations, factors influencing fdi, and sense of environmental protection. cfa is a statistical technique employed to ascertain whether the items within a scale or instrument effectively measure the common underlying construct. in the table, the "loading" column agbioforum, 25(1), 2023 | 220 chen, zhao, wu — research on the environmental effects of foreign direct investment illustrates the factor loadings standardized for each item in relation to its respective factor. a loading value equal to or exceeding 0.5 is commonly considered suitable, indicating the strength of the association between an item and its corresponding factor. in the table provided, the "composite reliability" column illustrates the reliability of the measurement model, gauging the internal consistency of the items within each factor. the composite reliability coefficient ranges from 0 to 1, with values exceeding 0.7 considered acceptable. the "average variance extracted" (ave) column indicates the proportion of variance accounted for by the items associated with each factor. ave values surpassing 0.5 signify that the factor's items adequately capture its essence. for the environmental performance factor, all items yielded loadings greater than 0.5, and the computed composite reliability was 0.879, indicating a robust level of internal consistency. the ave value was 0.555, indicating satisfactory coverage of the construct. likewise, within the environmental regulations factor, all items achieved loadings above 0.5, and the composite reliability was calculated as 0.835, reflecting acceptable internal consistency. the ave value was 0.568, signifying the adequacy of the scale components in measuring the construct. each item within the factors influencing fdi factor demonstrated robust loadings exceeding 0.5, contributing to a computed composite reliability of 0.944, indicative of a high level of internal consistency. the ave value was 0.587, attesting to the items' adequacy in effectively capturing the construct. similarly, for the sense of environmental protection factor, all items yielded loadings surpassing 0.5, resulting in a composite reliability of 0.896, representing strong internal consistency. the ave value was 0.592, confirming the items' sufficiency in measuring the construct. the confirmatory factor analysis outcomes confirm the validity and reliability of the measurement model utilized in the study. the scales employed to assess the constructs of interest exhibit substantial internal consistency and are well-suited for measuring these constructs (refer to table 2). these findings underscore the credibility of the study's conclusions and support the potential use of these measurement tools in subsequent research endeavours. table 2. reliability analysis item loading composite reliability average variance extracted environmental performance ep1 0.500 0.879 0.555 ep10 0.814 ep11 0.422 ep3 0.561 ep4 0.750 ep5 0.759 ep6 0.615 ep8 0.769 ep9 0.765 environmental regulations er1 0.396 0.835 0.568 er2 0.780 er3 0.793 er4 0.729 er5 0.709 er6 0.614 factors influencing fdi fdi1 0.839 0.944 0.587 fdi10 0.755 fdi11 0.642 fdi12 0.669 fdi2 0.673 fdi3 0.832 fdi4 0.756 fdi5 0.819 fdi6 0.858 fdi7 0.765 fdi8 0.818 fdi9 0.726 sense of environmental protection se1 0.867 0.896 0.592 se2 0.801 se3 0.782 se4 0.708 se5 0.825 se6 0.606 the r square value serves as an indicator of the proportion of variability in the dependent variable that can be explained by the independent variables incorporated within the model. in the present context, the r square value attributed to environmental performance is 0.729. this value signifies that the independent variables integrated into the model possess the capacity to elucidate approximately 72.9% of the observed variability in environmental performance. this suggests that foreign direct investment (fdi), environmental regulations, and potentially other unaccounted factors play significant roles in influencing environmental performance. conversely, the r square value associated with sense of environmental protection is computed as 0.198. this score implies that the independent variables integrated into the model have the potential to expound about 19.8% of the variation in sense of environmental protection. as indicated in table 3, this suggests that the factors agbioforum, 25(1), 2023 | 221 chen, zhao, wu — research on the environmental effects of foreign direct investment impacting fdi and environmental regulations exert a relatively weaker influence on sense of environmental protection. furthermore, it indicates that other variables, not included in the model, might exert a more substantial influence on this particular variable. table 3. r-square r square environmental performance 0.729 sense of environmental protection 0.198 the estimated model represents the actual model that has been tested using the collected data, whereas the saturated model represents a model that perfectly fits the observed data. the comparison between different models can provide insights into the goodness of fit of the estimated model. one way to assess the goodness of fit is through the standardized root mean square residual (srmr), which measures the discrepancy between the observed and model-predicted covariance matrices. a lower srmr value indicates a better alignment between the model and the observed data. in the context at hand, the srmr value for the saturated model is determined to be 0.074, while the estimated model yields an srmr value of 0.079. this suggests that the saturated model slightly outperforms the estimated model in terms of fitting the data, albeit by a small margin. the chi-square statistic measures the disparity between the observed and model-predicted data. a lower chisquare value signifies a better alignment between the model and the observed data. for the saturated model, the calculated chi-square value is 1886.022, whereas for the estimated model, the chi-square value stands at 1922.118. this implies that the saturated model demonstrates a slightly superior fit compared to the estimated model, albeit by a marginal difference. the predictive performance of the model is assessed using the q2predict metric, which quantifies the proportion of the dependent variable's variance that can be accounted for by the independent variables in the model. in this instance, the q2predict value is computed as 0.441, indicating that the model's predictive capacity is moderately fair. while there is room for enhancement, the outcomes suggest that the estimated model generally aligns well with the observed data. the model can be utilized for making predictions concerning the associations between independent and dependent variables in the population, thanks to its moderate predictive efficacy (refer to table 4). table 4. model fit saturated model estimated model srmr 0.074 0.079 chi-square 1886.022 1922.118 q²predict 0.441 following the fornell and larcker criterion, the diagonal entries represent the square root of the average variance extracted (ave) for each construct. the off-diagonal values illustrate the correlations existing between constructs. the findings suggest that the constructs demonstrate favorable levels of both convergent and discriminant validity. specifically, the diagonal values, which signify the ave for each construct, indicate that the amount of variance explained by the indicators within a particular construct is higher than the correlations with other constructs. this indicates good convergent validity, implying that each construct effectively captures more variance within its own set of indicators than it does in relation to other constructs. overall, the outcomes align with the criteria for both convergent and discriminant validity, bolstering the robustness and reliability of the measurement model utilized in the study. the off-diagonal values reveal that the correlations between the constructs are not excessively high, which suggests satisfactory discriminant validity. while the strongest correlation (0.728) exists between environmental performance and environmental regulations, this value remains lower than the average variance extracted (ave) for each respective construct. this indicates that the constructs are distinct concepts and do not overlap excessively. in summary, the fornell and larcker criterion affirms the convergent and discriminant validity of the four constructs: environmental performance, environmental regulations, factors influencing fdi, and sense of environmental protection. the results indicate that these constructs are both reliably measured and distinguishable from one another within the context of the study (see table 5). table 5. fornell and larcker criterion 1 2 3 4 environmental performance 0.675 environmental regulations 0.728 0.684 factors influencing fdi 0.540 0.486 0.766 sense of environmental protection 0.405 0.317 0.445 0.770 the inter-construct relationships all exhibited values below 0.9, underscoring the discriminant nature of the constructs within the study. specifically, the heterotrait-monotrait (htmt) values associated with the relationships between environmental regulations and environmental performance, factors influencing fdi and environmental performance, as well as sense of environmental protection and environmental performance, all remained below the threshold value of 0.807. these findings strongly suggest that the constructs utilized in the study are distinct and separate from each other. furthermore, the assessment tools employed for measuring these constructs do not capture the same underlying concept. consequently, the findings affirm the discriminant validity of all the constructs under investigation, reinforcing their individuality and independence within the research context (see table 6). table 6. htmt values 1 2 3 4 environmental performance environmental regulations 0.807 factors influencing fdi 0.606 0.580 sense of environmental protection 0.471 0.356 0.473 the outcomes of the analysis on route coefficients are presented in table 7. a notable path coefficient (o=0.082, stdev=0.068, |o/stdev|=2.150, p=0.014) between the factors influencing foreign direct investment (fdi) and environmental performance suggests that these factors exerted a positive influence on environmental performance. notably, the magnitude of the path coefficient, along with its statistical significance, underscores the favourable impact of the factors influencing fdi on environmental performance. furthermore, it was observed that environmental regulations agbioforum, 25(1), 2023 | 222 chen, zhao, wu — research on the environmental effects of foreign direct investment played a moderating role by negatively affecting the relationship between factors influencing fdi and environmental performance. this indicates that the effect of the factors influencing fdi on environmental performance was altered under different levels of environmental regulations. in conclusion, the results presented in table 7 highlight the significant influence of the factors impacting fdi on environmental performance and the moderating effect of environmental regulations on this relationship (o=-0.059, stdev=0.032, |o/stdev|=1.839, p=0.033). furthermore, the analysis revealed a significant interaction effect of environmental regulations on environmental performance. additionally, a significant interaction effect was identified between the factors influencing foreign direct investment (fdi) and the sense of environmental protection on environmental performance (o=-0.006, stdev=0.032, |o/stdev|=3.172, p=0.030). this implies that the sense of environmental protection plays a negative role in influencing the relationship between factors impacting fdi and environmental performance. in essence, these findings underscore the intricate dynamics between environmental regulations, the sense of environmental protection, factors influencing fdi, and their combined effects on environmental performance. the mediation role of the sense of environmental protection in the connection between factors influencing foreign direct investment (fdi) and environmental performance was examined using the bootstrapping method. the results indicated a significant indirect effect of factors influencing fdi on environmental performance through sense of environmental protection (o=0.058, stdev=0.022, |o/stdev|=2.662, p=0.004). these findings suggest that the association between factors influencing fdi and environmental performance is mediated by the presence of a sense of environmental protection. in summary, the data supports the notion that the sense of environmental protection plays a mediating role in the relationship between fdi-influencing factors and environmental performance. this insight highlights the complex interplay of factors that contribute to environmental performance outcomes. figure 2. structural model the outcomes suggest a significant positive influence of variables affecting foreign direct investment (fdi) on environmental performance, as depicted in figure 2. the results highlight that the relationship between factors influencing fdi and environmental performance is notably shaped by both environmental regulations and a dedication to environmental preservation. this insight underscores the intricate interplay between these variables and their collective impact on environmental performance outcomes. table 7. path analysis original sample standard deviation t statistics p values factors influencing fdi -> environmental performance 0.082 0.068 2.150 0.014 er * fdi -> environmental performance -0.059 0.032 1.839 0.033 sense of ep * fdi -> environmental performance -0.006 0.032 3.172 0.030 factors influencing fdi -> sense of environmental protection -> environmental performance 0.058 0.022 2.662 0.004 discussion the primary objective of this study was to investigate the impact of foreign direct investment (fdi) on the environment in china, while specifically considering the regulatory aspects of environmental laws and the mediating role of individuals' environmental protection sentiments. the study successfully confirmed the validity of all four theories, indicating that the factors influencing fdi indeed have a significant influence on the agbioforum, 25(1), 2023 | 223 chen, zhao, wu — research on the environmental effects of foreign direct investment environmental performance of foreign companies operating in china. the study's findings highlighted that the relationship between fdi and environmental outcomes is intricately shaped by the interplay of environmental regulations and the extent of environmental protection consciousness. the study's central hypothesis (h1) was corroborated, revealing that the factors affecting fdi hold considerable sway over environmental sustainability. this outcome adds to the existing body of literature that underscores the connection between fdi and environmental effectiveness, corroborating previous studies. ultimately, the study underscores that the ecological efficacy of multinational corporations in china is influenced by various factors, including market size, labor costs, and infrastructure quality. the research contributes to a deeper understanding of the multifaceted relationship between fdi, environmental laws, and individuals' commitment to environmental protection, shedding light on potential avenues for promoting sustainable practices and mitigating the environmental impacts of fdi in china. hypothesis 2 (h2) in the research study posits that the relationship between factors influencing foreign direct investment (fdi) and environmental performance is significantly impacted by environmental constraints. the conclusions drawn from this hypothesis align with prior research that has highlighted the pivotal role of environmental regulations in shaping the environmental effectiveness of international corporations. the findings suggest that the enforcement of environmental policies can alleviate the adverse environmental consequences associated with foreign direct investment (fdi) by establishing environmental standards and procedures. the investigation also addressed the third hypothesis (h3), revealing that the presence of an environmental conservation sentiment significantly moderates the connection between fdi and environmental effectiveness. this outcome concurs with previous studies that emphasize the substantial influence of local communities on the ecological performance of foreign corporations. this assertion is substantiated by research carried out by chen et al. (2022) in the realm of agriculture. according to the outcomes, the inclination towards environmental preservation within the local community can serve as a catalyst for multinational enterprises to engage in environmentally friendly practices. in a nutshell, the research outcomes provide insights into the intricate relationships among fdi, environmental regulations, local community sentiments, and environmental performance. these findings contribute to the comprehension of how various factors interact to impact environmental outcomes and suggest avenues for fostering eco-friendly approaches among multinational enterprises. the research's fourth hypothesis (h4) suggests a notable intermediary role played by environmental awareness in the connection between factors influencing foreign direct investment (fdi) and the effectiveness of environmental outcomes. the conclusion drawn aligns with earlier studies highlighting the substantial influence of indigenous communities on the ecological effectiveness of foreign businesses abroad (for instance, liu et al., 2021). according to the study's findings, the inclination of indigenous communities toward ecological preservation could act as a stimulant for multinational corporations to adopt ecologically sustainable approaches. the research outcomes carry significant implications for policymakers and stakeholders aiming to foster sustainable development and address the adverse ecological impacts of fdi in china. the study proposes that incorporating environmentally friendly policies and guidelines, in conjunction with community engagement, has the potential to amplify the ecological efficiency of multinational corporations in china, thereby fostering sustainable growth. conclusion the research aimed to assess how foreign direct investment (fdi), environmental regulations, environmental consciousness, and environmental performance collectively influence china's agricultural landscape. through the examination of 329 fdi enterprises operating in china, the study unveiled a meaningful connection between fdirelated factors and environmental performance. notably, the link between fdi and ecological effectiveness was notably shaped by both environmental policies and a proenvironmental mindset. the study brought to light an interrelation among the variables affecting fdi and environmental performance, stemming from a shared commitment to environmental preservation. these findings contribute to the existing body of knowledge emphasizing the pivotal role of ecological sustainability in attracting international investments and promoting economic growth. the outcomes underscore the importance of environmental policies and responsible environmental practices in bolstering environmental effectiveness—a cornerstone of china's sustainable progress. consequently, the research underscores the necessity for authorities to prioritize the enforcement and execution of environmental regulations. furthermore, it advocates for raising awareness among foreign enterprises about the criticality of environmental preservation to ensure a sustainable future for china. theoretical and practical implications this study aimed to explore how variables associated with foreign direct investment (fdi) impact ecological effectiveness, while also considering how environmental policies and a commitment to environmental conservation might moderate this relationship. the implications of the study's findings are both theoretically and practically significant. in the realm of agricultural research, this study contributes by offering empirical evidence that highlights the noteworthy impact of fdi-related factors on environmental sustainability. the outcomes align with previous research that established a positive connection between external investment and ecological effectiveness. the findings underscore that adopting sustainable agricultural practices and adhering to environmental regulations have the potential to improve the ecological performance of foreign investors. agbioforum, 25(1), 2023 | 224 chen, zhao, wu — research on the environmental effects of foreign direct investment the second finding from the analysis demonstrates a notable moderating effect of environmental constraints on the relationship between foreign direct investment (fdi) and environmental effectiveness. according to the results, stringent ecological regulations serve as an incentive for international investors to adopt sustainable business approaches, ultimately resulting in improved environmental performance. this study underscores the significance of regulatory frameworks in advancing ecological sustainability within the context of foreign investment endeavours. thirdly, the analysis unveils that the perspective on environmental conservation holds substantial influence as both a mediator and a moderator in the connection between fdi and environmental effectiveness. the research outcomes indicate that overseas stakeholders who strongly prioritize environmental preservation tend to embrace sustainable business practices, thereby leading to heightened ecological effectiveness. the study emphasizes the importance of nurturing an environmental consciousness to facilitate enduring sustainable foreign investment practices. the practical implications of the study's discoveries hold considerable relevance for international agricultural investors operating within china. the outcomes indicate that integrating sustainable business approaches aligned with environmental regulations and environmental preservation can effectively elevate the ecological achievements of foreign investors. as a result, it becomes essential for foreign investors to prioritize environmental sustainability within their corporate operations. this not only ensures compliance with regulatory frameworks but also upholds a positive public image, emphasizing the significance of environmentally responsible practices. furthermore, the study's outcomes underscore the pivotal role of regulatory frameworks in advancing ecological resilience within overseas investment ventures. consequently, it is advised that chinese policymakers persist in the formulation and implementation of rigorous agro-environmental regulations. these regulations would serve as incentives for global investors to adopt environmentally responsible agribusiness practices. moreover, the research emphasizes the significance of nurturing environmental awareness to facilitate sustainable foreign investment. therefore, stakeholders including industry associations, non-governmental organizations (ngos), and academic institutions are encouraged to continue promoting environmental consciousness among international investors. this effort would contribute to fostering ecologically sustainable business operations. this investigation adds to the existing pool of knowledge by offering empirical evidence of the influence exerted by foreign direct investment (fdi) determinants on environmental effectiveness. it also highlights the regulatory impact of environmental laws and the role of environmental conservation perception in this relationship. the research findings hold substantial implications, both theoretically and practically. they are relevant for international investors engaged in agribusiness in china, as well as policymakers and stakeholders advocating for ecological sustainability in foreign investment endeavours. limitations and future research directions despite the valuable contributions made by the research, there are certain limitations that require careful consideration when interpreting the findings. one limitation pertains to the approach used for data collection, which involved purposive convenience sampling through an online platform. while costeffective and straightforward, this method might not fully represent the entire demographic of fdi investors in china. to address this limitation, future research could employ a broader array of sampling techniques, including random sampling, to ensure greater population representativeness. another potential limitation arises from the use of cross-sectional data, which might restrict the ability to establish causal relationships among the variables being studied. subsequent investigations could overcome this limitation by exploring causal connections between variables through longitudinal or experimental methodologies. furthermore, it's important to note that the research focused solely on the impact of ecological variables on foreign direct investment (fdi), omitting other significant factors such as political and economic influences. these unexamined variables could potentially offer a more comprehensive understanding of the complexities influencing fdi activities. in conclusion, while the research is valuable, it's essential to acknowledge and address these limitations in order to interpret the results accurately and to guide future research endeavours effectively. there is a promising avenue for future research that involves investigating the impact of political and economic variables on foreign direct investment (fdi) and its relationship with ecological effectiveness. while the current study focused on china, it's important to acknowledge that its findings might not be directly applicable to other countries with different ecological regulations and societal norms. subsequent investigations could explore the extent to which the research's conclusions can be extended to various geographical regions that possess diverse circumstances and regulatory frameworks. this would offer a more comprehensive understanding of the interplay between fdi, ecological outcomes, and the broader political and economic context. in conclusion, this research has shed light on the intricate relationships between ecological factors, foreign direct investment (fdi), and ecological effectiveness within the context of china. despite its limitations, the findings carry significant 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roberts, choer moraes, & ferguson, 2019). in recent times, the global economy has encountered various challenges, such as the recent pandemic that significantly impacted economic conditions. the pandemic has had devastating consequences worldwide. this had an impact on every aspect of society. despite encountering various challenges, the global economy is experiencing robust growth (kuhlmann et al., 2022). the global economy came to a standstill as a result of trade disruptions and other associated factors. figure 1 displays the global gdp. figure 1: global gdp (billion $). source: statista mailto:jasim.m@coadec.uobaghdad.edu.iq https://orcid.org/0000-0002-2769-217x agbioforum, 25(2), 2023 | 172 mushib — the role of the digital economy, business synergy, and trade policies on global economic prosperity in india and china several countries, including china, play a significant role in the global economy. china is currently the world's fastest-growing economy (wang & zhang, 2021). it has effectively bolstered the global economy by disseminating its business ideas worldwide. china is widely favoured by countries around the world for business and manufacturing. ranked as the second largest globally, this entity makes a significant contribution of 9.3% to the global gd (zhang et al., 2020; zhong et al., 2021). china experienced a significant annual increase of sixteen percent in its exports from 1979 to 2009. at the start of that period, china's exports accounted for a mere 0.8 percent of global product and nonfactor service exports. during the year 2022, the country's exports amounted to $3.59 trillion, while imports reached $2.72 trillion. these facts demonstrate the significant role that china plays in promoting global economic prosperity. india is an emerging global economy. it is widely regarded as a significant global market. india's market volume is attracting both developing and developed economies worldwide (erumban et al., 2019). india's gdp stood at $3389 billion. in 2022, the country's exports amounted to $450 billion, while imports totalled $723.35 million (rana & sharma, 2019; usman et al., 2020). these facts highlight the significance and impact of india on the global economy's prosperity. china and india currently contribute to 50% of global growth. china accounts for the remaining portion, while india contributes 16%. india's contribution is projected to increase from 16% to 18% over the next five years, driven by its rapid growth. these facts require attention and resolution. the literature is currently addressing gaps related to trade policies, the digital economy, business synergies, and international economic prosperity. in addition, the study also utilised political support as a moderator in the relationship, specifically focusing on china and india, as this connection has not been thoroughly examined. in previous research, 1) krol (2018) and stansel & tuszynski (2019) examined the relationship between trade policies and economic prosperity. however, this study goes beyond that by investigating the interplay of various factors, such as the digital economy, business synergies, and political support, in china and india, 2) the goal of a study by mgadmi et al. (2021) and chen & zhang (2023) were to examine the connection between the digital economy and economic prosperity. however, the present study expands on this by investigating this relationship in conjunction with other factors such as trade policies, business synergies, and political support. 3) in previous studies conducted by awais et al. (2019) and geipele et al. (2018), the focus was on exploring the relationship between synergies and economic prosperity in various contexts. however, the present study aims to investigate this relationship in the specific contexts of china and india, considering additional variables such as trade policies and the digital economy. furthermore, the study will also examine the potential moderating effect of politics on this nexus, 4) several studies have examined political support from a moderation perspective, including the works of alabrrow (2022), pandey & moynihan (2005), and kacmar et al. (2013). the current study also utilised it at the intersection of trade policies, the digital economy, business synergies, and international economic prosperity, specifically in china and india. the present study holds significance in several ways. firstly, it sheds light on the necessity and significance of international economic prosperity. secondly, it aids finance and economic officials in comprehending the importance of trade policies, the digital economy, and business synergies for the overall prosperity of the international economy. literature review trade between countries plays a significant role in aligning the global economy. trade between two countries contributes to the strengthening of the global economy. a nation's trade policies have a significant impact on the fluctuation of its trade. trade and economic prosperity are closely linked. krol (2018) conducted a study on the impact of uncertainty on economic policy, imports, and foreign direct investment in this context. the study findings established a strong connection between uncertainty, economic policy, imports, and foreign direct investment. in addition, various forms of uncertainty, such as political, social, and conflict, significantly impact the economy. typically, this has a detrimental impact on the country's overall position, especially the economy. the international economy follows a similar pattern. given that the international economy is comprised of multiple countries' economies, any disruption in a particular country's economy will inevitably have repercussions on the global economy in various ways. both developing and developed economies are crucial for the overall prosperity of the global economy. nevertheless, the economy's impact can differ based on the size of the country's economy. the status of a country greatly influences its economic prosperity. developed economies offer more investment options compared to developing economies. the united states is widely regarded as the global centre for finance. as a global superpower, its economy has a significant impact on the world's overall development. stansel & tuszynski (2019) conducted a study on the relationship between institutions, trade, and economic prosperity in this context. the study findings revealed a strong connection between institutions, trade, and economic prosperity, specifically in the united states. in addition, various forms of uncertainty, such as political, social, and conflict, significantly impact the economy. the study suggests that countries should focus on strengthening their institutions to promote transparency and improve the functioning of every department, ultimately benefiting the economy. one of the key factors in a country's path to prosperity is the presence of political and economic freedom. a nation's growth is hindered when it lacks backing from its political sector. a politically stable country has a greater range of options for engaging in international trade, thereby making a significant contribution to the global economy. in this context, nalley & barkley (2005) conducted research on the various factors that include political freedom, economic freedom, and prosperity. in addition, agbioforum, 25(2), 2023 | 173 mushib — the role of the digital economy, business synergy, and trade policies on global economic prosperity in india and china the study examines how international trade policies can be used as a measure of a country's economic freedom. the study findings established a strong connection between political freedom, economic freedom, and prosperity. moreover, the trade policies of a nation play a crucial role in determining its economic freedom. the economic wellbeing of a nation is closely tied to its fiscal policy. each country strives to develop a robust fiscal policy that bolsters its economy. within this context, alzyadat & alnsour (2021) conducted a study examining the correlation between fiscal policy and economic prosperity. the study's findings revealed a connection between fiscal policy and economic prosperity. h1: there is a nexus amid between trade policies and global economic prosperity. the impact of globalisation on both the economy and society has been far-reaching. additionally, it has a significant impact on the global economy. there is a clear connection between the global economy and economic prosperity. in this study, mgadmi et al. (2021) examined the relationship between the digital economy and economic prosperity. the study conducted a comparative analysis of developing and developed economies worldwide. the provided data pertains to the period of tenure spanning from 1990 to 2020. the analysis revealed that digital technologies have a significant and positive effect on economic growth in both groups of nations. different countries experience varying levels of digitalization impact. our research findings indicate a well-established connection between information and communication technology and economic growth, which holds true in both the short and long term. many countries are embracing the digital economy to enhance their economic growth. within this context, chen & zhang (2023) conducted a study exploring the correlation between the progress of the digital economy and financial prosperity. the study focused on the population of china, utilising a nine-year data sample from 2011 to 2020. the analysis findings indicate that a) the digital economy plays a significant role in promoting common prosperity. b) it is evident that there are externalities and spatial spillover effects associated with the digital economy's impact on fostering common prosperity. c) the efficiency of resource allocation in the digital economy acts as a mediating factor in the development of common prosperity. the promotion of the digital economy is more pronounced in areas with lower levels of economic development. finally, this paper presents four key areas for remedies and recommendations: enhancing the development of the digital economy, increasing investment in infrastructure, enhancing the government's digital governance capabilities, and establishing a demonstration zone for the digital economy. in a recent study, zhao, jiao, & wang (2023) investigated the relationship between the digital economy, entrepreneurial activity, and common prosperity. a quantitative approach was utilised in the study. this study analysed a quantitative sample of data spanning 9 years. the selected date spans from 2011 to 2020. the study findings suggest a correlation between the digital economy, entrepreneurial activity, and the promotion of common prosperity. h2: there is a nexus amid between digital economy and global economic prosperity. the national collaborations contribute to the growth of the country's economy. on the flip side, the interconnectedness between nations leads to a thriving global economy. awais et al. (2019) conducted a study on the pak-china economic corridor, focusing on the interplay between economic, social, and environmental sustainability. the study found that china and pakistan were close to forming a significant alliance. it is imperative to develop new and applicable frameworks to ensure long-term progress in the global context. highlighting a common perspective, the concepts of socioeconomic diversity and strategic importance are gaining traction as new strategies for navigating asian markets. this promotes the development and utilisation of operational economic opportunities and drives competition in the global business market. this research provides a substantial amount of information and explores the integration of sustainability within the context of the cpec situation. when multiple system components interact, their combined effect surpasses the sum of their individual effects, resulting in the creation of a phenomenon called synergy. the synergy effect, also referred to as the synergistic effect, is the additional impact or distinction that arises from the interaction. systems can be classified into various categories, such as technological, economical, or other types. the phenomenon of synergy can have both positive and negative consequences. geipele et al. (2018) conducted research on the interplay within the circular economy. the study findings suggest that synergies are crucial for improving the country's economy, fostering cross-country business relationships, and promoting job development for the welfare of society. typically, entities tend to handle synergies on an individual basis, with minimal intervention documented in the literature. kristensen, kjeldsen, & thorsøe (2016) examined the relationship between the territorial paradigm and circular economy, specifically focusing on fault lines and synergies. the study centred on the agri-food industries. the study discussed various fault lines, such as management issues and decision-making in leadership. the study suggested that countries should promote synergies to strengthen their economies. it was noted that there is limited evidence globally on streamlining these synergies. h3: there is a nexus amid between business synergies and global economic prosperity. trade policies play a crucial role in supporting a country's economy by considering various factors. the trade policies play a crucial role in streamlining the procedure for both local and foreign investment. the formulation of trade policies falls under the jurisdiction of the government in this country. on numerous occasions, the country's economy has fallen short of achieving its desired economic growth due to a disregard for trade policies. trade policies have a profound impact on economic prosperity. the country's economy has failed to grow, despite the implementation of favourable trade policies. one contributing factor is the absence of sufficient political backing. political support serves as a crucial link connecting trade policies and economic prosperity. in their agbioforum, 25(2), 2023 | 174 mushib — the role of the digital economy, business synergy, and trade policies on global economic prosperity in india and china study on moderation, pandey & moynihan (2005) investigated the correlation between organisational performance and red tape. this study also examined the role of political support in the nexus. the investigation focused on the us population. the study utilised data from a sample of 247 respondents. the study's findings indicated a clear link between organisational success and bureaucratic processes. in the context of the relationship between bureaucracy and organisational effectiveness, political support plays a crucial role as a moderator. h4: political support acts as moderator in the relationship between trade policies and global economic prosperity. the world has transformed into a global village. the phenomenon of globalisation has had a profound impact on all aspects of the global economy. the economy is undergoing a transformation as various sectors are being digitised. the relationship between the digital economy and economic prosperity is highly significant. often, even with the adoption of the digital economy, economic prosperity remains elusive. in such a scenario, the government plays a crucial role by providing support. the government, i.e., political support, acts as a moderator in this context. in this context, al-abrrow (2022) delved into the relationship between organisational policies, organisational silence, and organisational cynicism. in addition, the study utilised perceived support as a moderator in the relationship. the research was conducted in iraq. the study utilised a quantitative approach. a sample of 346 employees was used to gather quantitative data. the analysis revealed a connection between organisational policies, organisational silence, and organisational cynicism. additionally, there is perception of the moderator's level of support in the relationship. h5: political support acts as moderator in the relationship between digital economy and global economic prosperity. synergies play a crucial role in enhancing the business sector of any economy. the reasons for synergies may vary, but their overall aim is to strengthen the business sector of the country, which is ultimately responsible for economic prosperity. the government and political support often play a crucial role in enhancing the connection between business synergies and the economic prosperity of a country. in their study, kacmar et al. (2013) examined the relationship between ethical leadership and subordinate outcomes within the context of moderation. in addition, the study utilised political support (in terms of skills) as a moderator in the relationship. the study was conducted in the united states. the study utilised a quantitative approach. a total of 136 instances of quantitative data were chosen for analysis. the sample data was collected through questionnaires and the random sampling procedure. to examine the connection, the method of ml regression analysis was employed. the investigation's findings indicated a correlation between moral leadership and submissive performance. furthermore, the moderator of the relationship in regard to political support (in terms of talents). h6: political support acts as moderator in the relationship between business synergies and global economic prosperity. research method this study examined the impact of the digital economy, business synergies, and trade policies on global economic prosperity. the study delved into the role of political support in shaping the relationship between the digital economy, business synergies, trade policies, and global economic prosperity in china and india. the study collects data from prominent economists in india and china using questionnaires. the study utilised various items to assess different variables. for instance, the digital economy variable was measured using six items (yousaf et al., 2021), while business synergies were evaluated using five items (das & rangarajan, 2020). similarly, trade policies were assessed using five items (faure et al., 2022), political support was measured using six items (powers & renshon, 2023), and global economic prosperity was evaluated using five items (alwi et al., 2021). the study chose prominent economists from china and india as participants. the economists were chosen through purposive sampling to exclusively gather data from highly respected economists. the surveys were distributed through in-person visits. as part of the research, the team distributed a total of 215 surveys to indian economists and 301 surveys to chinese economists. after one month, we received a total of 135 valid responses from indian economists and 167 valid responses from chinese economists. the response rate for the valid responses is 58.53%. this study utilised the spssamos software to examine the relationship between specific variables. the amos is known for delivering optimal results when researchers utilise primary data and large data sets (hair, howard, & nitzl, 2020). the study utilised three predictors: the digital economy (de), business synergies (bs), and trade policies (tp). the study also incorporated a moderating variable called political support (ps), and the dependent variable focused on was global economic prosperity (gep). the constructs are referenced in figure 2. figure 2: research model. digital economy trade policies business synergies political support global economic prosperity agbioforum, 25(2), 2023 | 175 mushib — the role of the digital economy, business synergy, and trade policies on global economic prosperity in india and china research findings the results demonstrate the relationship between items, which was assessed using composite reliability (cr). the findings revealed values greater than 0.70. furthermore, the examination includes the utilisation of average variance extracted (ave) and factor loadings, with both figures surpassing the threshold of 0.50. ultimately, the data is verified through asv and msv, with both values falling below the ave. the values exhibited a strong correlation among the items. the results are presented in table 1. table 1: convergent validity. constructs items loadings cr ave msv asv digital economy de1 <--de 0.782 0.933 0.702 0.529 0.169 de2 <--de 0.970 de3 <--de 0.748 de4 <--de 0.789 de5 <--de 0.970 de6 <--de 0.734 business synergies bs1 <--bs 0.849 0.890 0.618 0.564 0.332 bs2 <--bs 0.834 bs3 <--bs 0.774 bs4 <--bs 0.729 bs5 <--bs 0.737 trade policies tp1 <--tp 0.996 0.936 0.754 0.664 0.271 tp2 <--tp 0.632 tp3 <--tp 0.998 tp4 <--tp 0.631 tp5 <--tp 0.992 political support ps1 <--ps 0.824 0.893 0.588 0.529 0.274 ps2 <--ps 0.809 ps3 <--ps 0.869 ps4 <--ps 0.797 ps5 <--ps 0.731 ps6 <--ps 0.518 global economic prosperity gep1 <--gep 0.718 0.871 0.576 0.367 0.219 gep2 <--gep 0.755 gep3 <--gep 0.760 gep4 <--gep 0.780 gep5 <--gep 0.779 as fornell larcker has confirmed, the results further demonstrate the relationship between the variables. the values indicating the relationship with the constructs themselves are higher than those indicating the relationship with the other variables. the findings indicated a weak correlation among the variables. the results can be found in table 2. table 2: discriminant validity. tp de bs ps gep tp 0.868 de 0.164 0.838 bs 0.815 0.269 0.786 ps 0.370 0.727 0.474 0.767 gep 0.507 0.219 0.606 0.453 0.759 the results indicate the model's strong performance, as evidenced by the remsa testing, which shows values below 0.05. in addition, the verification is conducted using tli and cfi, with both results exceeding 0.90. these variables demonstrate a good fit for the model. the results can be found in table 3. table 3: model good fitness. selected indices result acceptable level of fit tli 0.905 tli > 0.90 cfi 0.909 cfi > 0.90 rmsea 0.000 rmsea < 0.05 good; 0.05 to 0.10 acceptable figure 3: measurement model assessment. the results showed that the digital economy, business synergies, and trade policies are positively correlated with global economic prosperity in china and india, confirming hypotheses h1, h2, and h3. furthermore, the results revealed that political support plays a significant moderating role in the relationship between the digital economy, business synergies, trade policies, and global economic prosperity in china and india. these findings confirm the acceptance of hypotheses h4, h5, and h6. the results are presented in table 4. table 4: path analysis. relationships beta s.e. c.r. p global economic prosperity <--digital economy 0.476 0.040 12.040 0.000 global economic prosperity <-- business synergies 0.087 0.042 2.072 0.038 global economic prosperity <--trade policies 0.041 0.016 2.563 0.022 global economic prosperity <--de x ps 0.119 0.007 16.790 0.000 global economic prosperity <--bs x ps 0.055 0.008 7.224 0.000 global economic prosperity <--political support 0.335 0.041 8.243 0.000 global economic prosperity <--tp x ps 0.028 0.007 3.925 0.000 agbioforum, 25(2), 2023 | 176 mushib — the role of the digital economy, business synergy, and trade policies on global economic prosperity in india and china figure 4: structural model assessment. discussions the findings indicate that trade policies are associated with a favourable connection to global economic well-being. the findings of alola, bekun, & sarkodie (2019) provide support for the notion that countries can enhance their markets and meet the demands of international economies by implementing effective trade policies that prioritise international trade while also safeguarding domestic industries. therefore, the successful implementation of trade policies enhances global economic well-being. the findings align with the research conducted by usman, alola, & sarkodie (2020), emphasising that efficient trade policies facilitate the sharing of surplus inventories or resources with other economies while also meeting domestic economic needs through imports. these factors contribute to the achievement of worldwide economic prosperity. the findings indicate a strong correlation between the digital economy and global economic prosperity. the results of a study by li et al. (2020) support the idea that the digital economy has a positive impact on the market. it not only expands opportunities for human capital development, such as improvements in health and education levels, but also facilitates the sharing of business strategies. therefore, it facilitates the growth and success of various economies. the findings support the research by pan et al. (2022), which contends that the digital economy fosters greater connectivity among people and improves their access to resources and business strategies. it contributes to the attainment of worldwide economic prosperity. the findings indicate a strong correlation between business synergies and global economic prosperity. the findings are consistent with a study by denicolai, zucchella, & magnani (2021), which examines the effect of business synergies on global economic well-being. the study suggests that promoting business synergies globally can lead to a combination of resources and strategies, ultimately contributing to global economic prosperity. the findings in gupta's (2021) study indicate that business synergies have a positive impact on business investment, administration, and market expansion across international borders. therefore, there exists a state of worldwide economic affluence. the findings indicate that political support plays a crucial role in shaping the relationship between trade policies and global economic prosperity. the findings align with the research conducted by li et al. (2021), which posits that political support leads to reduced constraints on traders' movements. this encourages countries to implement efficient trade policies, contributing to the overall economic well-being of the world. the findings align with the research conducted by myovella, karacuka, & haucap (2020), suggesting that political support plays a crucial role in enhancing trade policies and utilising them to achieve global economic prosperity. the findings indicate that political support plays a crucial role in shaping the relationship between the digital economy and global economic prosperity. the findings of alleyne, haniffa, & hudaib (2019) support the notion that political support can lead to the association of economic entities in the digital economy, ultimately contributing to global economic prosperity. the findings are consistent with the research by khan et al. (2019). the study suggests that political support plays a crucial role in fostering the digital economy and contributing to global economic prosperity. therefore, it enhances the connection between the digital economy and worldwide economic well-being. the findings indicate that political support plays a crucial role in influencing the relationship between business synergies and global economic prosperity. the findings of kanie et al. (2019) provide support for the notion that when political support is present, companies can cultivate business synergies, potentially leading to increased global economic prosperity. the findings support menton et al.'s (2020) research, which contends that political support fosters business synergies and encourages their contribution to global economic prosperity. implication the current study provides valuable guidance for academics conducting research. the paper analyses the impact of trade policies, the digital economy, and business synergies on global economic well-being. the study examines the moderating role of political support in relation to trade policies, the digital economy, business synergies, and global economic prosperity. this study holds great importance for economies, as it provides valuable guidelines for economic regulators seeking to enhance global economic prosperity. the study suggests that the formulation of effective trade policies by governments is crucial for the attainment of global economic prosperity. the study proposes the development of a digital economy within the country to contribute to global economic prosperity. it is important to promote business synergies both within and across countries to foster global economic prosperity. the study suggests that economic entities require political support. the outcome would be the development of trade policies that enhance worldwide economic well-being. the present study suggests that economic entities require political support. encouraging a digital economy can lead to increased global economic prosperity. in addition, the study suggests that it is necessary to provide political support. as a result, the promotion of business synergies leads to increased global economic prosperity. the study provides guidance to policymakers in formulating policies aimed at enhancing global economic prosperity through the use of agbioforum, 25(2), 2023 | 177 mushib — the role of the digital economy, business synergy, and trade policies on global economic prosperity in india and china an efficient digital economy, business collaborations, and trade policies. conclusion the study aimed to examine the impact of trade policies, the digital economy, and business synergies on global economic prosperity, as well as the role of political support in these areas. data was collected through structured questionnaires from china and india. the analysis of the data indicates a positive correlation between trade policies, the digital economy, and business synergies with global economic prosperity. the findings suggest that the implementation of effective trade policies by the government can have a positive impact on both national and international trade balances. the increase in international trade has led to widespread economic prosperity on a global scale. the findings also indicated that promoting the digital economy has a positive impact on the international market and fulfils domestic economic requirements. as a result, there has been an increase in global economic performance. the study also found that through the development of business synergies, international relations can be improved, and resources can be shared. therefore, it is possible to attain global economic prosperity. the findings also indicated that political support plays a crucial role in mediating the relationship between trade policies, the digital economy, business synergies, and global economic prosperity. if political support is present, trade policies, the digital economy, and business synergies have the potential to significantly contribute to global economic prosperity. limitations there are still some limitations to consider in the study. future authors should strive to address these limitations with additional effort. the research framework focuses on analysing the relationship between a few factors (trade policies, the digital economy, and business synergies) and global economic prosperity. however, it has a limited scope. future researchers ought to incorporate additional factors into the research framework. in addition, the authors have employed political support as a moderating factor in the relationship between trade policies, the digital economy, business synergies, and global economic prosperity. future researchers are expected to include an additional mediator between trade policies, the digital economy, business synergies, and global economic prosperity. references abendin, s., & duan, p. 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(2021). impact of international trade on cross-border e-commerce development: an empirical study based on the evidence from ningbo city in china. international journal of technology, policy and management, 21(2), 140-156. doi: https://doi.org/10.1504/ijtpm.2021.116514 https://doi.org/10.1016/j.jclepro.2021.126265 https://doi.org/10.3390/su13105715 https://doi.org/10.1016/j.indmarman.2020.01.010 http://dx.doi.org/10.58567/jie01010005 https://doi.org/10.1504/ijtpm.2021.116514 agbioforum, 25(3): 44-51. ©2023 agbioforum charoenpanich et al. guidelines for managing the organic agriculture industry in organic plant types for sustainable growth guidelines for managing the organic agriculture industry in organic plant types for sustainable growth pimyada charoenpanich* faculty of business administration, department of industrial business administration, king mongkut's university of technology north bangkok e-mail: pimyadalaw21@gmail.com punsavadee pongsiri assistant professor dr. faculty of business administration, department of industrial business administration, king mongkut's university of technology north bangkok e-mail: punsavadee.p@fba.kmutnb.ac.th thitirat thawornsujaritkul assistant professor dr. faculty of business administration, department of industrial business administration, king mongkut's university of technology north bangkok e-mail: administrative.fba@fba.kmutnb.ac.th the organic agricultural industry in thailand is a major economic activity that involves a significant population. this study explored the necessary guidelines for effectively managing the industry in a sustainable manner. this study examines the relationship between entrepreneurship, supply chain management (scm), knowledge management, and innovation management. the study utilized primary data collected from respondents via survey questionnaires. the study also used the smart-pls to analyse the relationship between variables. the findings indicated a strong and positive connection between entrepreneurship, scm, knowledge management, and innovation management. the hypothesis test indicated that the size of the industrial business attached equal significance to guidelines for managing the organic agriculture industry for sustainability. the study guides policymakers in developing policies related to enhancing knowledge management and supply chain management using effective entrepreneurial mindsets. keywords: entrepreneurship, supply chain management, knowledge management, innovation management, organic agricultural. introduction organic agriculture is of utmost importance in driving the progress of the united nations sustainable development goals (sdgs) in at least seven significant areas. it contributes to mitigating negative effects and enhancing positive effects in order to achieve a variety of objectives, such as improving local food production for communities. 2) offering enhanced nutritional benefits. 3) improving soil quality to enhance water storage, filtration, and minimise chemical pollution in water sources. 4) reducing chemical use leads to improved occupational health. 5) enabling consumers to make informed decisions when selecting certified organic products that meet established standards. 6) addressing greenhouse gas emissions and storing carbon in the soil. 7) tackling soil degradation and the decline of natural ecosystems (ferdous et al., 2021; rosati et al., 2021). an analysis of the global organic agricultural areas revealed a noticeable trend of expansion. based on a report that surveyed 190 countries, the organic agriculture research institute and the international federation of organic agriculture found that the global organic farming area saw a significant increase of 43.24 million rai, which accounted for 9.96 percent between 2017 and 2022. the organic farming area has seen significant growth, going from 434.33 million rai in 2017 to 477.57 million rai in 2022 (gamage et al., 2023). looking at organic agriculture from a global perspective, it's evident that there is a consistent growth trend every year. the global organic agriculture data report, presents strategies for developing a sustainable organic farming system with potential (willer et al., 2024). nevertheless, the production of organic agricultural products in thailand encounters notable challenges, especially regarding the certification of production standards and the principles of organic agriculture to establish international credibility. there is a lack of a unified organisation in thailand that certifies reliable product standards at the global level. this has resulted in variations in organic product standards across different countries, including differences in production standards, product inspection, and labelling standards for organic products. this challenge poses a barrier to the growth of the international market for organic products, leading to a consistent decrease in the value of thai organic agricultural products in the global market (arunrat et al., 2022; yao et al., 2022). today, consumers are more aware of health and food safety, which influences their choices in agricultural products and food consumption. it is evident that health products have been experiencing continuous growth (liao et al., 2022). thailand is actively working to develop organic agriculture as a means of moving away from a reliance on chemical fertilizers and chemicals. the country aims to achieve self-reliance by producing organic fertilizers and biological substances, guided by the principles of the sufficiency economy. according to panyasing et al. (2022), organic agriculture prioritises the well-being of farmers, producers, and local communities. its goal is to ensure agricultural stability for farmers while also preserving and restoring the traditional way of life within the agricultural community. the production method of organic agriculture in thai society necessitates that farmers adopt a humble approach and adjust their production techniques to align with natural methods that are in harmony with the local agricultural community (kangogo et al., 2021; suwanmaneepong et al., 2020). the importance of enhancing the management of the organic agricultural industry for sustainable growth has been emphasised. the researcher aims to investigate the management guidelines for sustainable growth in the organic agriculture industry, specifically focusing on organic plants. the researcher expects that the research findings will provide useful guidance for private sector organisations in future management of their organic agriculture industry. literature review the researcher has gathered significant information on the mailto:pimyadalaw21@gmail.com agbioforum, 25(3), 2023 | 45 charoenpanich et al. guidelines for managing the organic agriculture industry in organic plant types for sustainable growth guidelines for sustainable growth in the organic agricultural industry. various forms of organic farming operation and management exist, which differ across countries. the japanese management style of farming adopts a humble approach, guided by the principle of avoiding four practices: refraining from ploughing the land, abstaining from using chemical fertilisers, minimising weeding, particularly by avoiding pesticides, and strictly prohibiting the use of chemicals. fukuoka's natural agricultural approach is seen as having a significant influence on the thai alternative agriculture movement in the near future (sapbamrer & thammachai, 2021; uthai & boonrahong, 2023). the korean management style emphasizes natural agriculture and soil fertility enhancement. utilizing local microorganisms to ferment agricultural waste, such as animal manure, enhances soil fertility and boosts economic profitability. compared to the fukuoka method, which requires a longer adjustment period, the natural agricultural system based on korean methods has gained more widespread adoption and popularity (liao et al., 2022). thailand employs a holistic agricultural production management method that differs from modern agriculture. this method prioritises maximising production through the development of techniques for providing plant nutrients and preventing or eliminating organisms that may reduce productivity. farmer entrepreneurs perceive farms as agro-industrial businesses and aim to integrate the economy with the community. farmer entrepreneurs primarily engage in value addition to agricultural products and continuous industry innovation (deka & goswami, 2020). farmer entrepreneurs possess superior characteristics and behaviours compared to farmers. farmers primarily produce agricultural raw materials and generate income from selling them (kangogo et al., 2021). agricultural entrepreneurs strategically manage agricultural businesses to achieve their goals, showcasing leadership and management skills. this finding aligns with previous studies that investigated the relationship between entrepreneurial behaviour and factors such as innovation, creativity, value creation, and continuous opportunity-seeking (janker et al., 2021). the environment has undergone significant changes within and outside organisations in the era of globalisation. hence, organisations must avoid stagnation as it hampers their ability to compete with rivals and survive in the long run (condor, 2020). in order to achieve a competitive advantage, entrepreneurs must consistently engage in self-development to ensure that their businesses maintain a leading position (manyise & dentoni, 2021). the creation of a competitive advantage involves extracting value from organisational resources, which consist of four essential elements as follows: 1) the creation of operational value through the utilisation of existing resources is a valuable resource. 2) the second strategy involves utilizing limited or rare resources. 3) leveraging resources that are challenging to imitate or replicate (imperfectly imitable resources) 4) implementing non-substitutable resources. these elements are essential for maintaining the organisation's sustained competitive advantage (umar et al., 2020). knowledge management is essential in the organic farming industry to ensure the appropriate quality and quantity that align with the added value. according to tindiwensi et al. (2020), a comprehensive understanding of management in organic agriculture involves familiarity with tasks such as crop selection, site suitability assessment, and consideration of key success factors. effective weather information management and knowledge of suitable cultivation areas are crucial for achieving success in organic farming. due to the wide range of agricultural products and geographical regions, each area necessitates specialised knowledge (żywiołek et al., 2021). thailand's extensive agricultural history and diverse regions contribute to its abundant agricultural knowledge, which offers a competitive edge. knowledge management refers to the systematic management of knowledge within an organization. the process involves identifying and collecting existing knowledge, classifying it, disseminating and exchanging it, and fostering a conducive learning environment. the objective is to utilise acquired knowledge to support organisational goals (salavisa et al., 2021). the sustainable management of the organic agricultural industry is crucial for the advancement of both smallholder farmers and larger agricultural systems in thailand. these practices aim to promote sustainability in terms of the economy, society, and the environment. the following factors are crucial for the sustainable management of the organic farming industry: 1) enhancing soil quality ensuring and enhancing soil quality is crucial for maximising crop yields. nowadays, there are numerous organic methods available that improve soil quality without the use of chemicals. 2) utilisation of suitable technology. it is important for farmers to utilise suitable technology for organic production, as certain stages of the production process may necessitate the use of labour-saving machines to minimise human labour expenses and other factors (anderberg, 2020) regulating the use of chemicals. minimising the use of chemicals in crop cultivation holds significant value in organic agriculture. currently, certain farmer factions have successfully adopted a completely chemical-free farming approach. 4) exploring sustainability in agricultural systems. emphasising the significance of sustainability in food and crop production, environmental conservation, and establishing stability in the organic farming system is crucial to supporting the future generation of farmers and fostering progress in various aspects. 5) organic agriculture is a viable option for small farmers in need of support, particularly those who currently lack access to government assistance. it is critical to improve the agricultural system's sustainability while also providing support and education to farmers about organic farming. efforts should be made to improve the efficiency of managing the organic agricultural industry, ensuring its long-term viability, and facilitating its transfer to future generations (lu et al., 2020) supporting and promoting entrepreneurs in the organic agriculture industry is crucial for creating sustainability in the thai agricultural sector. by reducing obstacles and increasing opportunities for further business expansion, we can ensure a brighter future for this industry. they play a critical role in the production and development of the agri-food industry, which includes: 1) organic farming methods promote safety for farmers by reducing the use of chemicals, protecting them from toxins, improving their health, and enhancing their agricultural efficiency and agbioforum, 25(3), 2023 | 46 charoenpanich, pongsiri, thawornsujaritkul. — guidelines for managing the organic agriculture industry in organic plant types for … continuity. currently, there is a significant increase in the number of patients from the agricultural sector, attributed to multiple factors leading to various diseases (mungkung et al., 2022). using organic methods in agriculture reduces the release of toxic substances into the soil and water, which is environmentally for the environment in terms of environmental friendliness. environmentally friendly agricultural products can enhance their value through sustainable production methods. preserving future farmland and employing organic methods help maintain soil fertility. this study focuses on the utilisation of plants for soil nourishment after harvesting and the application of organic fertilisers to enhance the topsoil's nutrient content. as a result, farmland maintains its fertility, ensuring its suitability for future agricultural production. organic farming has multiple benefits for farmers, the environment, and society. therefore, we should carefully evaluate it as a viable option for expanding agricultural businesses and promoting sustainable growth (ahmed et al., 2020). research hypotheses h1: the entrepreneurship components directly influence knowledge management components. h2: the entrepreneurship component directly influences the components of innovation management. h3: the entrepreneurial components directly influence supply chain management components. h4: innovation management components directly influence knowledge management components. h5: innovation management components directly influence supply chain management components. theoretical framework the theoretical framework of this research represents the coherence between the variables in the study which can be considered as follows: 1) entrepreneurship is indicated as the independent variable, directly influencing both innovation management and supply chain management. 2) innovation management is indicated as a mediating variable, influencing both knowledge management and supply chain management. 3) knowledge management and supply chain management are indicated dependent variables, influenced by both entrepreneurship and innovation management. figure 1: theoretical framework. the theoretical framework represents the coherence between the variables in the study, including: 1. entrepreneurship is the independent variable in this study, meaning it is the factor being manipulated to observe its impact on other variables. 2. innovation management acts as a mediating variable, impacting the relationship between entrepreneurship and other variables, such as knowledge management and supply chain management. 3. knowledge management is a dependent variable that is measured based on changes in entrepreneurship and innovation management. 4. supply chain management is a dependent variable that is predicted based on changes in entrepreneurship and innovation management. research methodology this study examines the influence of entrepreneurship on supply chain management (scm), knowledge management, and innovation management. additionally, it investigates the impact of innovation management on knowledge management and scm. the study utilized primary data collected from respondents via survey questionnaires. this study derived its questionnaires from previous research. the entrepreneurship section consists of six questions adapted from alsafadi et al. (2020). the innovation management section includes six questions taken from didonet & diazvillavicencio (2020). the knowledge management section comprises eight items extracted from abdulmuhsin et al. (2021). lastly, the supply chain management section consists of four questions taken from astuty et al. (2021). furthermore, the employees were chosen from the organic agricultural sector. the selected employees are the respondents of the study. the employees were selected through simple random sampling. the surveys were distributed to employees through personal visits and emails. a total of 622 surveys were distributed, resulting in 357 valid responses, indicating a response rate of approximately 57.40 percent. the study also employed smart-pls to analyse the relationship between variables. the statistical tool is effective for analysing primary data and yields excellent outcomes, even when complex models are used by researchers (hair et al., 2017; hair jr et al., 2020). finally, the study employed one independent variable, entrepreneurship (ent), along with two mediator variables, innovation management (inm) and knowledge management (knm), and one predictive variable, supply chain management (scm). the variables mentioned in figure 1 are referenced above. study results this study investigates the correlation between the items using alpha. the results indicate that the values exceed the threshold of 0.70. the study investigates the correlation between the items using composite reliability (cr). the results indicate that the values exceed the threshold of 0.70. the study investigates the correlation between the items using factor loadings. the results indicate that the values exceed the threshold of 0.50. the study investigates the correlation between the items using average variance extracted (ave). the results indicate that the values exceed the threshold of 0.50. the values indicate a high correlation between the items. the figures are presented in table 1. agbioforum, 25(3): 44-51. ©2023 agbioforum charoenpanich et al. guidelines for managing the organic agriculture industry in organic plant types for sustainable growth table 1: convergent validity. constructs items loadings alpha cr ave entrepreneurship ent1 0.878 0.922 0.939 0.720 ent2 0.799 ent3 0.810 ent4 0.877 ent5 0.861 ent6 0.863 innovation management inm1 0.831 0.860 0.896 0.591 inm2 0.824 inm3 0.735 inm4 0.773 inm5 0.760 inm6 0.678 knowledge management knm1 0.838 0.905 0.923 0.602 knm2 0.795 knm3 0.794 knm4 0.694 knm5 0.791 knm6 0.776 knm7 0.764 knm8 0.745 supply chain management scm1 0.780 0.794 0.865 0.617 scm2 0.810 scm3 0.781 scm4 0.769 the study investigates the correlation between the variables using the fornell larcker method. the first value in the column is larger than the other values in the same column. the values indicate a low correlation between the variables. the figures are presented in table 2. table 2: fornell larcker. ent inm knm scm ent 0.849 inm 0.467 0.769 knm 0.463 0.534 0.776 scm 0.599 0.672 0.640 0.785 this study investigates the correlation between variables using cross-loadings. the values indicating the association with the variable itself are larger than the values indicating the association with other variables. the values indicate a low correlation between the variables. the figures are presented in table 3. table 3: cross-loadings. ent inm knm scm ent1 0.878 0.425 0.390 0.544 ent2 0.799 0.398 0.385 0.523 ent3 0.810 0.354 0.440 0.447 ent4 0.877 0.387 0.382 0.511 ent5 0.861 0.436 0.389 0.532 ent6 0.863 0.371 0.371 0.484 inm1 0.373 0.831 0.498 0.610 inm2 0.373 0.824 0.375 0.542 inm3 0.452 0.735 0.434 0.528 inm4 0.287 0.773 0.430 0.500 inm5 0.297 0.760 0.334 0.464 inm6 0.352 0.678 0.366 0.425 knm1 0.429 0.446 0.838 0.593 knm2 0.433 0.408 0.795 0.536 knm3 0.309 0.459 0.794 0.417 knm4 0.326 0.387 0.694 0.447 knm5 0.394 0.447 0.791 0.567 knm6 0.359 0.365 0.776 0.507 knm7 0.263 0.422 0.764 0.382 knm8 0.336 0.371 0.745 0.500 scm1 0.445 0.540 0.511 0.780 scm2 0.458 0.661 0.407 0.810 scm3 0.521 0.450 0.561 0.781 scm4 0.463 0.429 0.557 0.769 the study investigates the correlation between the variables using the heterotrait monotrait (htmt) ratio. the results indicate that the values are below 0.90. the values indicate a low correlation between variables. the figures are presented in table 4. agbioforum, 25(3): 44-51. ©2023 agbioforum charoenpanich et al. guidelines for managing the organic agriculture industry in organic plant types for sustainable growth table 4: heterotrait monotrait ratio. ent inm knm scm ent inm 0.519 knm 0.504 0.599 scm 0.699 0.794 0.761 figure 2: measurement assessment model. the results indicate a significant and positive relationship between entrepreneurship and supply chain management (scm), knowledge management, and innovation management. this supports hypotheses h1, h2, and h3. the results indicate a significant and positive association between innovation management, scm, and knowledge management. this supports the acceptance of hypotheses h4 and h5. table 5 provides the relationships. table 5: path analysis. relationships beta standard deviation t statistics p values ent -> inm 0.467 0.051 9.155 0.000 ent -> knm 0.273 0.051 5.387 0.000 ent -> scm 0.364 0.044 8.350 0.000 inm -> knm 0.407 0.058 6.965 0.000 inm -> scm 0.502 0.045 11.209 0.000 figure 3: structural assessment model. discussions the analysis reveals that entrepreneurship is vital in organisational management, specifically in knowledge management, innovation management, and supply chain management. the study suggests that entrepreneurship has a direct impact on knowledge management, as indicated by h1. li et al. (2020) conducted a prior study that underscores the crucial role of entrepreneurs in shaping and utilising knowledge within organisations. knowledge management encompasses agbioforum, 25(3), 2023 | 49 charoenpanich et al. guidelines for managing the organic agriculture industry in organic plant types for sustainable growth key processes including knowledge search, creation, collection, and utilisation, which are crucial for enhancing organisational competitiveness and personnel growth. h2, according to a study conducted by mokbel al koliby et al. (2024), it has been found that entrepreneurship has a direct impact on innovation management. the study also highlights the significant influence of entrepreneurs' ideas for product development on the success of businesses. innovation management is the process of developing and launching fresh products or services, leveraging technology to enhance their worth and stand out from rivals. the quality of innovative products is essential for meeting customer needs and ultimately improving business success. h3, confirms the direct influence of entrepreneurship on supply chain management, aligning with the findings of ketchen jr & craighead (2020). their research emphasizes the importance of effective logistics management and marketing strategies in order to compete in highly competitive markets. efficient supply chain management involves utilising information technology and innovation to optimise processes and enhance cost-effectiveness and efficiency within the organisation. the study by zhou et al. (2023) supports the notion that innovation management has a direct impact on knowledge management, specifically in relation to organisational efficiency. this finding emphasises the importance of promoting innovative management practices. risk management and knowledge sharing are crucial for innovation management in organisations. h5 indicates that innovation management directly affects supply chain management, as supported by adnani et al. (2023) study. this study highlights the strategic importance of supply chain management in implementing new methods and innovations to enhance process efficiency and reduce costs across the supply chain. effective supply chain management facilitates the smooth movement of materials, goods, or services, leading to overall organisational success. this study aimed to establish guidelines for managing the organic agriculture industry in thailand in order to facilitate sustainable growth. the study identified four key factors that contribute to the success of sustainable organic agriculture: supply chain management, knowledge management, innovation management, and entrepreneurship. the factors were ranked based on their importance, with supply chain management identified as the most critical factor. the results are consistent with prior research highlighting the significance of supply chain management in advancing sustainable agriculture. efficient supply chain management can enhance profitability for farmers and producers by reducing costs and improving efficiency. additionally, knowledge management and innovation management can enhance the development of new technologies and techniques for farmers and producers, leading to improved productivity and sustainability. entrepreneurship can contribute capital for sustainable agriculture investment. the study's findings have implications for policymakers, farmers, and producers in thailand's organic agriculture sector. the findings can inform policymakers in developing policies to support supply chain management, knowledge management, innovation management, and entrepreneurship in the agriculture industry. farmers and producers can utilise the results to enhance their practices, adopt new technologies, and improve productivity and sustainability. suggestions from the research results government organisations should implement strategies to support and enhance the operations of organic agricultural businesses, ensuring their stability and success. develop policies and regulatory frameworks to encourage organic agricultural practices, including subsidies for organic certification, tax incentives for organic farmers, and funding for research and development in organic farming techniques. implement support programmes to facilitate market access for organic agricultural products, including initiatives to strengthen distribution channels, establish an organic product certification standard, and promote consumer awareness of the benefits of organic farming. the study guides policymakers in developing policies to enhance knowledge management and supply chain management through effective entrepreneurial mindsets. organic farming entrepreneurs should prioritise enhancing the quality of organic agriculture and meeting the evolving demands of customers over time. prioritising health-conscious consumers, who are likely to be the main customer group, can be achieved through social media distribution channels. implement continuous training programmes for organic farming entrepreneurs to enhance their knowledge and skills in sustainable farming practices, innovative marketing techniques, and supply chain management strategies relevant to the organic agriculture industry. promoting collaborations between organic farming entrepreneurs and research institutions or agricultural experts to utilise scientific knowledge and technological advancements for enhancing crop yields, improving product quality, and implementing sustainable farming practices. recommendations for future research the aim is to enhance supply chain management, knowledge management, innovation management, and entrepreneurship in the sector by utilising case studies and pilot programmes. design training programmes to enhance farmers' and producers' skills in supply chain management, knowledge management, innovation management, and entrepreneurship, aiming to improve sustainability and productivity. this study examines the influence of certification and labelling on consumer behaviour and market demand for organic products in thailand. facilitate collaborations and knowledge exchange among stakeholders in the organic agriculture industry to enhance supply chain management and promote innovation. this study aims to examine the social, economic, and environmental advantages of organic agriculture on local communities and the environment. the findings will be used to inform policies and programmes for sustainable development. conclusion the analysis of the model based on the research hypotheses yielded the following key findings: 1. entrepreneurship has a direct impact on knowledge management (h1), highlighting the importance of identifying essential knowledge for an organization's success. the key elements of knowledge management include searching for, creating, collecting, and utilizing knowledge. these elements are essential for entrepreneurs to effectively manage knowledge, support agbioforum, 25(3), 2023 | 50 charoenpanich, pongsiri, thawornsujaritkul. — guidelines for managing the organic agriculture industry in organic plant types for … competitive strategies, and facilitate personnel development. 2. entrepreneurship has a direct impact on innovation management (h2) because entrepreneurs are crucial in developing new products to improve business success. product innovation management entails developing and launching new products to fulfil customer demands, leveraging technology to enhance value, and distinguishing from rivals. 3. the influence of entrepreneurship on supply chain management (h3) emphasises the importance of effective marketing strategies and efficient logistics management in a competitive business environment. the utilisation of information technology and innovation can provide businesses with advantages in optimising both products and processes. 4. innovation management (h4) has a direct impact on knowledge management, highlighting the significance of promoting innovative management practices to improve organisational efficiency and effectively manage business risks. 5. innovation management has a significant impact on supply chain management (h5). by strategically implementing new methods and innovations in supply chain practices, the transfer of raw materials, goods, and services within the supply chain can be optimised. this optimisation ensures cost efficiency and timely delivery. references abdulmuhsin, a. a., abdullah, h. a., & basheer, m. f. 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https://dx.doi.org/10.31328/jsed.v3i1.1290 https://dx.doi.org/10.31328/jsed.v3i1.1290 http://doi.org/10.25133/jpssv312023.024 https://www.fibl.org/fileadmin/documents/shop/1747-organic-world-2024_light.pdf https://www.fibl.org/fileadmin/documents/shop/1747-organic-world-2024_light.pdf https://www.fibl.org/fileadmin/documents/shop/1747-organic-world-2024_light.pdf https://doi.org/10.1007/s11368-022-03253-5 https://doi.org/10.1007/s11368-022-03253-5 https://doi.org/10.1080/00472778.2021.1888383 https://doi.org/10.3390/en14248207 agbioforum, 25(2): 42-50. ©2023 agbioforum fresh fruit supply based on market competition model: empirical evidence from 14 cities in guangxi, china liurong pan* ph.d, candidate, faculty of logistics and digital supply chain, naresuan university,65000 phitsanulok, thailand email: panl61@nu.ac.th orcid: https://orcid.org/0000-0003-2629-2702 boonsub panichakarn ph.d; faculty of logistics and digital supply chain, naresuan university,65000 phitsanulok, thailand email: boonsubp@nu.ac.th orcid: https://orcid.org/0000-0001-6664-0615 melvin esmayor garin lecturer, faculty of logistics and digital supply chain, naresuan university,65000 phitsanulok, thailand email: melvingarinako@gmail.com orcid: https://orcid.org/0009-0000-0480-9374 *corresponding author: liurong pan; email: panl61@nu.ac.th this research investigates the competitive dynamics in the fruit industry across 14 cities in guangxi, china, from 2012 to 2021. the study utilises the boston matrix market competition model, which emphasises two crucial indicators: market share and market growth rate. the findings unveiled clear market segments within these urban areas. the cities of liuzhou, yulin, wuzhou, fangchenggang, and baise are classified within the dog market category, whereas guigang, baise, hezhou, hechi, laibin, and chongzuo are classified under the child market. the star market encompasses the cities of nanning and guilin, while the cash cow market is exclusively represented by qinzhou. furthermore, this study examines the trajectory of market dynamics within each urban area. the fruit industry in various cities in guangxi, china, exhibits a notable disparity, with a certain level of uniformity observed in the fruit supply across these cities. consequently, it is suggested that efforts be made to improve orchard infrastructure and consistently advocate for the widespread adoption of professional planting and management practices to strengthen the growth and recognition of fruit brands. keywords: market competitiveness; fresh fruit industry; guangxi; china introduction the fruit industry in guangxi, china, possesses substantial developmental advantages at the national level. according to xinhua news agency (2022), guangxi has maintained its position as the leading region in fruit farming areas since 2016, with its production surpassing that of shandong province in china in 2021 (china statistical database, 2023). china places a considerable emphasis on the development of its agricultural sector. in order to facilitate the ongoing restructuring of its agricultural sector, the general office of the state council of china has issued the "fourteenth fiveyear plan for the people's republic of china national economic and social development and the outline of longterm goals for 2035." this plan proposes the optimisation of agricultural production distribution through the establishment of industrial belts and advantageous areas for characteristic agricultural products. additionally, it emphasises the importance of actively developing facility agriculture and expanding the forest and fruit industry, with a focus on adapting these initiatives to local conditions (cpgc, 2021) (xinhua news agency, 2022). guangxi, recognised as one of the leading fruit production regions in china, boasts an annual fruit output of 10 million tonnes. this remarkable achievement can be attributed to the region's advantageous climate and geographic conditions, which facilitate a wide array of fruit varieties and substantial yields. consequently, guangxi has firmly established itself as a prominent province for fruit cultivation within the country (wang, 2022). furthermore, the geographical proximity of guangxi to vietnam affords it highly advantageous conditions for engaging in international trade with member countries of the association of southeast asian nations (asean). according to jian and nong (2022), the regional comprehensive economic partnership agreement (rcep) in 2022 presented notable prospects for guangxi to enhance its level of openness and collaboration. the user's text lacks sufficient information to be rewritten in an academic manner (jian & nong, 2022). in the meantime, the fruit industry has emerged as a significant sector in guangxi, contributing to its overall competitiveness and playing a crucial role in augmenting farmers' earnings, stimulating the economy of the industry, and fostering rural revitalization (qian, 2022; zhang, 2022). the user's text is already academic and does not need to be rewritten. the user provided a numerical reference (qian, 2022; zhang, 2022). despite the practical significance of assessing the competitiveness of various fruit markets, there is a dearth of research studies that specifically examine market competition within the fruit industry. the research methodology outlined in this study has two main objectives. firstly, it aims to evaluate the stability and growth prospects of the fruit industry through a dynamic analysis of market structures. secondly, it seeks to identify and define different market segments within a particular region using a competitive framework. this segmentation approach facilitates the optimisation of market strategies for each distinct category. therefore, the primary objective of this study is to examine the guangxi fruit industry, specifically by analysing market competition trends across 14 cities in guangxi. this analysis will be conducted by evaluating the market share and fruit production growth rates of these cities in order to determine their respective market positions and competitive trends. furthermore, the objective of this study is to assess and analyse the current state of fruit development in different regions, develop optimisation strategies for various competitive situations, and provide valuable insights to facilitate informed decision-making in order to promote the high-quality growth of the fruit industry in guangxi. mailto:panl61@nu.ac.th https://orcid.org/0000-0003-2629-2702 mailto:boonsubp@nu.ac.th https://orcid.org/0000-0001-6664-0615 mailto:melvingarinako@gmail.com https://orcid.org/0009-0000-0480-9374 mailto:panl61@nu.ac.th agbioforum, 25(2), 2023 | 43 pan, panichakarn, garin — fresh fruit supply based on market competition model: empirical evidence from 14 cities in guangxi, china literature review scholars have employed qualitative and quantitative methodologies to examine the factors that impact competitiveness and the strategies employed for promoting the fruit industry. according to the findings of gül (2006), a study conducted on 129 apple farms in turkey, it was determined that apple production in units exhibits greater competitiveness compared to individual production. in their study, reginato, carrasco, and garcía de cortázar (2008) focused on the peach industry in chile and established a noteworthy correlation between planting density and orchard yields. the results of their study demonstrated a correlation between reduced crop yields and decreased planting densities. there is a need for the enhancement of orchard density design in order to improve competitiveness bakhshinejad and hassanzadeh (2012). conducted a study on iran's primary agricultural products using the comparative advantage analytical approach. the research findings indicate that iran does not possess a comparative advantage in the exportation of products such as apples. however, it is suggested that iran has the potential to increase its export capacity by enhancing its technological capabilities. lakner, brenes‐muñoz, and brummer (2017) conducted a study on the technological efficiency of the agribusiness industry in chile between 2001 and 2007. the findings of their research indicate that fruit companies in this sector would benefit from enhancing their industrial competitiveness by implementing scientific and technological advancements. in their study, bohdaniuk, buriak, and savchuk (2019) employed questionnaires to survey crop producers and consumers in order to investigate the factors that are of utmost importance for improving the competitiveness of the fruit industry. the findings revealed that safety, quality, and environmental considerations in fruit production emerged as the top three priority factors. in their empirical study, neves, trombin, marques, and martinez (2020) examined the industrial chain of brazilian oranges over a span of 16 years. their analysis aimed to identify the factors contributing to the growing consumption of brazilian oranges in various countries and to propose strategies for optimisation. the formation of agricultural clusters for fruit and vegetable production in uzbekistan was examined by urdushev, eshankulov, and mavlyanov (2021). the study focused on analysing the geographical distribution of these clusters and the changes in export indicators over time. according to the findings of sokolov, castornov, and zhilyakov (2021), the apple industry is currently facing an issue of overproduction. the researchers concluded that in order to enhance the competitiveness of their products in the market, producers should implement innovative approaches to industry development. kun, yuenan, and yingxue (2021) employed porter's five forces competitiveness model to conduct an analysis of the strawberry market in dandong 99. the authors put forth several essential strategies to improve the competitiveness of the organisation. these strategies encompass the development of a brand strategy, the strengthening of logistics infrastructure, and the optimisation of marketing channel strategies.in a study conducted by zheng and zhuang (2015), the export trade characteristics of china's tropical fruits were examined. the authors analysed the comparative advantages and market share of these fruits and concluded that a majority of china's tropical fruits lack competitiveness, with a low growth rate in terms of their competitiveness. in a study conducted by lily (2015), an analysis was conducted on the export competitiveness of fruits and vegetables in zhangzhou. the study identified four key factors that influenced the growth of export trade. these factors encompassed the over-concentration of export markets, the rise in export finished products, the limited international competitiveness of regional brands, and the utilisation of a low-priced export mode. in a study conducted by hai'e (2016), the market structure, behaviour, performance, and competitiveness of the apple industry in gansu province were examined using scp and index analysis methods. zhang, tan, and deng (2017) conducted an analysis of the competitiveness of guangxi's fruit industry using the "porter diamond" analysis model. based on their findings, they proposed four strategies for improvement: promoting largescale operations, emphasising quality, enhancing market competitiveness, and fostering innovation. based on the findings of han, niu, and chang (2021), the yuncheng apple cluster's developmental trajectory encompasses several key strategies. these strategies involve enhancing the variety planting structure, elevating the standardisation level of apple cultivation, augmenting brand visibility, fostering the growth of leading enterprises, and establishing a contemporary apple industry system. in their study, wang and cui (2020) conducted a longitudinal analysis spanning from 2017 to 2019 to assess the progression of the fruit industry cluster in shandong province. the researchers employed concentration, competitiveness indicators, and factor analysis methods to evaluate the cluster's development. it was posited that there is a need for enhancement in both the degree and magnitude of commercialization within the fruit industry. in their study, zeng et al. (2021) conducted an analysis, calculation, and ranking of the competitiveness and concentration index of yantai grapes, apples, and pears. the authors discovered that the location quotient index, scale comparative advantage index, concentration coefficient, and display comparative advantage index serve as direct indicators of the specialisation and scale of the fruit industry. furthermore, these indicators are crucial for ensuring the industry's sustainable development. huang (2006) conducted an analysis of the competitiveness of the fruit industry in sichuan province, employing the diamond model as a theoretical framework. the study utilised various indicators, including concentration rate, location entropy, display symmetric comparative advantage index, and comprehensive comparative advantage index. the findings revealed that enhancing the industry's competitive standing necessitates the optimisation of the planting structure, the enhancement of standardisation within the industrial chain, and the cultivation of distinctive brands. in brief, a comprehensive examination has been undertaken regarding research methodologies, influential factors, and strategies for optimising competitiveness within the fruit industry. the primary focus of international research is on the theoretical and methodological aspects of the fruit industry's agbioforum, 25(2), 2023 | 44 pan, panichakarn, garin — fresh fruit supply based on market competition model: empirical evidence from 14 cities in guangxi, china competitiveness. in contrast, chinese research predominantly focuses on conducting empirical analyses with the objective of identifying influential factors in the fruit industry's competitiveness and formulating practical strategies for optimisation. this research ultimately aims to address realworld challenges. nevertheless, there is a scarcity of research regarding the competitiveness of the fruit industry in guangxi, and the existing analysis is limited in terms of its examination of market competition. by examining the distribution of market share within the fruit industry, one can gain insights into the market position and competitive dynamics across various regions. this analysis enables the prediction of the fruit industry's progress in different areas and facilitates the formulation of strategic plans to address competitive trends. ultimately, this approach supports the advancement of the guangxi fruit industry towards high-quality development. it is imperative to assess the regional challenges in guangxi's fruit development and the distribution of fruit industries specific to each city. it is crucial to comprehend the prevailing challenges in the developmental process of the fruit industry in different regions, considering the current state of fruit development in guangxi and the distribution of the industry across various cities. the evaluation of the industry's overall competitiveness carries practical significance. methods and data boston consulting created the market competition analysis technique in 1970 as a way to strategically plan enterprise product portfolios. this analytical approach utilises the market growth rate and market share as indicators of market attractiveness and company competitiveness. the application of this methodology to the fruit industry market enables us to assess the market position of each region, analyse the characteristics of market development, ascertain the potential for future market growth, and establish a reference framework for market development. the research on dynamic transfer in this model offers predictions regarding future market development trends and aids in the formulation of optimisation strategies. the present study employed the "guangxi statistical yearbook" as a primary data source for information retrieval and analysis. the assessment of market share and growth rate for each city in guangxi was conducted based on fruit production data spanning from 2012 to 2021. the subsequent step involved the construction of the boston matrix model for each city in guangxi in order to evaluate and analyse market dynamics that have transpired over the course of the past decade. market share and growth rate were defined as market share: （1） market growth rate: （2） where i and i indicate the market share and market growth rate of the i-th fruit industry, respectively; indicates i-th city's total fruit production within the t timeperiod; indicates the fruit production in the i-th city in the t–1 time period; n = 14;  n i t ix indicates total fruit production in guangxi during the t time-period. using the average value of the fruit market share t and market growth rate t as the dividing line, the matrix was divided into four quadrants: star market, golden bull market, toddler market, and thin dog market in guangxi's 14 cities. as shown in fig. 1, the average value method for the market share and growth rate of fruit production in all markets over a t time period was used to calculate tand t (huang, 2006; porter, 1985). （3） （4） where denotes the market share of the i-th city in the tth period; t i denotes the market growth rate of the i-th city in the t-th period, with n = 14, representing 14 urban areas in guangxi. figure 1: types of market forms in a fruit system. sources: the model is modified from the boston matrix (henderson, 1970) changes in the market pattern unveil the evolving dynamics within a specific market structure over a period of time. in a typical state, the external environmental conditions remain unaltered, and its progression adheres to the inherent dynamic transfer principle known as the "child market – star market cash cow market dog market." figure 2 details the dynamic change. figure 2: types of market competition and their dynamic changes. %100 1i =  = n t i t i i x x  %100 1  − = − t i t i t i i x xx  t ix 1−t ix n n i t i t       =  =1  n n i t i t       =  =1  t i agbioforum, 25(2), 2023 | 45 pan, panichakarn, garin — fresh fruit supply based on market competition model: empirical evidence from 14 cities in guangxi, china results development of the fruit industry in guangxi in relation to the magnitude of progress observed in the fruit industry of guangxi, there was a persistent upward trajectory in both fruit production and planting areas within the region throughout the period spanning from 2012 to 2021 (figure 3). the two curves exhibited a concurrent pattern of variation, indicating that there was a simultaneous increase in both curves from 2012 to 2015, followed by a simultaneous decrease from 2015 to 2016, and another simultaneous increase from 2016 to 2021. figure 3: guangxi fruit planting area and total production in 2012-2021 source: guangxi statistical yearbook (2012-2022) in the year 2021, guilin will emerge as the predominant area within the orchard regions of guangxi, accounting for approximately 19% of the entire region. bose, which constituted 13% of the district, followed closely thereafter. the main contributors to garden fruit production in the guangxi region in 2021 were guilin, nanning, and qinzhou, accounting for 32%, 16%, and 9% of the total regional output, respectively. the observable discrepancy in fruit production and orchard size across different cities in guangxi province is apparent, displaying notable fluctuations within the observed intervals. in the context of the fruit industry structure in guangxi, it is evident that three primary products, namely citrus fruits, bananas, and mangoes, hold a significant market share. according to the data presented in the guangxi statistical yearbook, it can be observed that in the year 2021, citrus fruits, bananas, mangoes, and shatin pomelos demonstrated a production volume surpassing 1 million metric tonnes. furthermore, the annual production of lychees and longans ranged from 600,000 to 1 million metric tonnes. it is worth mentioning that citrus oranges account for 50% of the overall fruit production in the guangxi region. figure 4: the area of orchards in guangxi cities in 2021 source: guangxi statistical yearbook (2022) 0 200 400 600 800 1000 fruit production and planting area of each city in guangxi planting area（thousand hectares） production（tons） agbioforum, 25(2), 2023 | 46 pan, panichakarn, garin — fresh fruit supply based on market competition model: empirical evidence from 14 cities in guangxi, china competitive situation of the guangxi fruit industry the data collected is subjected to analysis, wherein the evaluation of the average market share (α) and market growth rate (β) of fruit production in 14 cities in guangxi is conducted figure 5: market competition chart of the fruit industry in various cities in guangxi this analysis involves dividing the matrix into four quadrants using dividing lines as α t = 5.98%, β t= 11.23%. the categorization of the fruit production market into four distinct groups can be inferred from the examination of figure 5, which encompasses market share information, growth rate, and a scatter plot. this classification is outlined in table 4. through an examination of icons, it has been ascertained that the dog market encompasses a total of five urban centres, namely liuzhou, yulin, wuzhou, fangchenggang, and baise. based on the data presented in table 1, it can be observed that the growth of the fruit production market in four cities, excluding beihai, exhibited a relatively stable pattern from 2012 to 2021, with no statistically significant deviations. the mean market growth rate surpassed 8%, whereas the market share declined below the average, specifically at 5.98%. among the entities under consideration, fangchenggang exhibited the lowest market share, amounting to a mere 0.46%. in close proximity, beihai demonstrated a slightly higher market share of 0.64%. in relation to the child market, it can be observed that the cities of guigang, baise, hezhou, hechi, laibin, and chongzuo demonstrated a comparatively diminished market presence. nevertheless, the growth rates exhibited by the aforementioned entities exceeded the mean growth rate of 11.23%, thereby suggesting a substantial potential for expansion. in contrast, the star market encompasses the cities of nanning and guilin, which function as dependable suppliers of fruit for the market in guangxi. these cities exhibit the greatest market dominance within this particular context. at present, guilin possesses a market share of 26.02%, suggesting a notable potential for growth. it is crucial to refrain from underestimating the significance of this potential. simultaneously, qinzhou holds the exclusive position as the primary cash cow market, securing the third highest fruit market share in the guangxi region. nevertheless, the rate of growth exhibited by this entity is comparatively moderate. table 1: market pattern in each city of guangxi (2012-2021) market form standards source cities market form (%) dog market a<5.98% b<11.23 liuzhou （4.65,9.01） wuzhou （3.36,10.11） beihai (0.64,6.3) fangchenggang (0.46,8.39) yulin （5.13,9.48） child market a<5.98% b ≥ 11.23 guigang （1.61,12.23） baise （5.29,16.69） hezhou （4.18,12.13） hechi （2.3,12.24） libing （3.79,17.54） chongzuo （3.62,11.39） star market a ≤ 5.98% b ≥ 11.23 nanning （13.01,12.44） guilin （26.02,12.27） cash cow market a ≤ 5.98% b ≤ 11.23 qinzhou (9.64,7.02) figure 6: market form changes in nanning, qinzhou, guilin, and baise agbioforum, 25(2), 2023 | 47 pan, panichakarn, garin — fresh fruit supply based on market competition model: empirical evidence from 14 cities in guangxi, china dynamic change trajectory of the market form of each city the study aimed to examine and analyse the fluctuating trends in the annual fruit production market patterns of various cities in guangxi province between the years 2012 and 2021. figure 6-8 depicts the trajectory of the fruit yield market form for each city, based on the average classification criteria of 5.98% and 11.23%. the subsequent analysis demonstrates the following alterations. over the course of more than ten years, nanning has undergone a gradual transformation from being a market with high profitability to becoming a market with significant growth potential and increased prominence. the formulation of a fruit development strategy known as the "one centre, two sectors" approach has been a result of the recent adaptation of nanning to its local conditions. this strategic approach places significant emphasis on the prevailing fruit variety sector and aims to facilitate the expansion of three key industries, namely banana, orah mandarin, and dragon fruit. the banana is a fruit that holds significant cultural importance, originating from the region of nanning. the agricultural geographical denomination "nanning banana" has been officially registered. the orah mandarin industry in nanning has experienced significant growth, encompassing 60% of the planting area in guangxi and one-third of china's total orah mandarin cultivation area. additionally, the dragon fruit industry in nanning stands out for its adherence to strict standards and commitment to producing top-notch goods. in 2019, the observed rate of expansion in the nanning market was twice the fundamental threshold. although there has been a modest decrease in the rate of growth in fruit production within the market, there has been a notable rise in its market share. from the period spanning 2012 to 2021, guilin has consistently upheld a substantial market dominance in the domain of fruit production within the guangxi region. since the year 2017, fruit production in guilin has constituted approximately 25% of the overall fruit production in the guangxi region. the prominence of guilin's fruit planting area, which accounts for approximately one-third of the entire guangxi region, has consistently positioned it as the leading producer in the area. the interdependence between the fruit industry's market dynamics in guangxi and the extent of fruit cultivation in guilin is evident. in the year 2017, guilin encountered a notable decrease in its market growth rate, ultimately reaching a nadir of 5.13%. nevertheless, in 2019, the growth rate experienced a notable recovery, reaching its peak value of 20.37%. following this, the rate of growth became stable in the subsequent two years, gradually nearing the main threshold. by the year 2021, qinzhou had effectively undergone a transformation from a cash cow market to a star market. in the last ten years, the fruit industry in qinzhou has demonstrated a relatively consistent pattern of dynamic changes. its market share has consistently remained above average, while the market growth rate has approached the primary threshold. baise has consistently maintained a prominent status as a significant urban hub within the guangxi region, specifically in relation to its involvement in the mango industry. between the years 2012 and 2021, there was a sustained and uninterrupted increase in its market share on an annual basis. since the year 2019, the product known as "baize mango" has been officially recognised and listed among china's esteemed compilation of the top 100 agricultural brand catalogue products. as previously stated, baise experienced a substantial metamorphosis in the specified year, transitioning extensively from a child market to a star market. figure 7. market form changes in liuzhou, yulin, fangchenggang, and wuzhou agbioforum, 25(2), 2023 | 48 pan, panichakarn, garin — fresh fruit supply based on market competition model: empirical evidence from 14 cities in guangxi, china wuzhou during the past decade, the market trends in liuzhou, wuzhou, beihai, fangchenggang, guigang, yulin, hechi, laibin, and chongzuo have demonstrated fluctuations and substantial transformations in the child market and dog market. the company's market share and growth rate exhibit performance levels that fall below the industry average. nevertheless, the overall rate of growth exhibits an ascending trajectory, suggesting encouraging prospects for additional advancement. the fruit industry in guangxi holds considerable importance and has consistently garnered government attention and strategic planning as a pivotal sector for development. the "guangxi implementation plan for promoting the high-quality development of the fruit industry" was issued by the government of guangxi, china, in 2022. the present document delineates multiple production objectives, a construction strategy for noteworthy projects pertaining to high-calibre advancement, and a distribution chart that underscores pivotal support regions for prevailing fruit cultivars. the aforementioned initiatives are integral components of the overarching strategic framework referred to as "the 14th five-year plan". every urban centre possesses a unique scientific approach aimed at fostering and advancing its prevailing fruit sector. as an example, it can be observed that liuzhou is known for its cultivation of tangerines, shatian pomelos, and kumquats. wuzhou places a high emphasis on the cultivation of shatian pomelos and longan fruits. the cultivation of lychees is prominent in beihai, whereas fangchenggang specialises in the production of earlymaturing tangerines and golden passion fruits. guigang is recognised for its cultivation of longan and lychee fruits, while yulin has gained a reputation for its banana and dwarf banana cultivars. hechi is committed to the cultivation of sweet persimmons and kiwis, whereas laibin focuses on the production of purple passion fruits. finally, it should be noted that chongzuo has gained recognition for its cultivation of grapes and dragon fruits. the establishment of advantageous production areas can facilitate the enhancement of specialised agricultural industrial parks across various cities, thereby promoting the production of distinctive agricultural products. this phenomenon will result in the progressive reduction of excess production capacity, consequently bolstering the competitiveness of the fruit industry in the guangxi region. the visual representation presented depicts the importance of nanning, guilin, qinzhou, and baise as pivotal support markets for the fruit industry in the guangxi region. to bolster the competitive edge of guangxi's forthcoming fruit industry, it is advisable to investigate potential markets encompassing liuzhou, wuzhou, beihai, fangchenggang, guigang, yulin, hechi, laibin, chongzuo, and hezhou. figure 8. market changes in beihai, hezhou, guigang, hechi, laibin and chongzuo agbioforum, 25(2), 2023 | 49 pan, panichakarn, garin — fresh fruit supply based on market competition model: empirical evidence from 14 cities in guangxi, china conclusions in conclusion, there is a substantial discrepancy present within the fruit industry across diverse urban areas, characterised by a pronounced uniformity in fruit availability. in particular, the province of guangxi, encompassing a total of 14 cities, exhibits a limited participation in the jinniu market and star market, with only three cities, namely nanning, guilin, and qinzhou, actively engaging in these markets. in contrast, it can be observed that the remaining 11 cities are situated within the child and dog market, thereby suggesting an unequal level of development within the fruit industry across these particular cities. the resolution of this matter requires government agencies to adopt a methodical approach under effective leadership. the proposed methodology should encompass the systematic design of the urban planting layout, the identification of appropriate zones for various fruit crops based on their genetic attributes, and the removal of obsolete cultivation areas and unsuitable regions. the avoidance of large-scale production of homogeneous fruits and the subsequent competition among fruit farmers can be achieved through the optimisation of planting structure and its alignment with market demand. moreover, it is imperative for urban areas to proactively cultivate and promote their advantageous fruit industries. guangxi fruit ought to give precedence to the optimisation of its orchard infrastructure in order to bolster its market competitiveness and endeavour towards the implementation of large-scale professional planting and management ractices. within the child market segment, there exist 11 cities, namely liuzhou, wuzhou, and beihai, wherein the market share of the fruit industry falls below the average for the respective province. these eleven urban areas are home to a considerable quantity of orchards situated in topographically elevated and mountainous terrain. however, it is important to note that a significant number of orchards currently utilise antiquated planting techniques and suffer from inadequate hydropower infrastructure. furthermore, the implementation of measures pertaining to land fertilisation and pest control is insufficient. as a result, the fruit trees cultivated in these orchards demonstrate limited resilience to external factors, leading to diminished productivity and compromised fruit quality. therefore, it is recommended to explore the option of partnering with financially stable third-party enterprises or government entities to provide assistance in funding the development of infrastructure and the acquisition of equipment for fruit farms. it is recommended to simultaneously utilise outstanding talent, consolidate technical resources, enhance research and development efforts in emerging technologies, and establish demonstration zones for the fruit industry. this approach will enable the automation and digitization of the complete value chain within the fruit industry. furthermore, it is crucial to optimise the advancement of fruit brands and strengthen the marketing strategies implemented for fruit brands. the cultivation of a unique fruit brand culture can be achieved through the implementation of comprehensive research into the historical and folk traditions linked to fruits, the creation of captivating narratives surrounding fruit brands, and the development of visually appealing packaging for fruit brand images. acknowledgments this research is supported by the faculty of logistics and digital supply chain, naresuan university thailand, by granting a ph.d. scholarship to the first author, and there is no specific grant from any funding agency in the public, commercial, or not-for-profit sectors. references bakhshinejad, m., & hassanzadeh, a. 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kissinger faculty of forestry, universitas lambung mangkurat banjarbaru, indonesia email: kissinger@ulm.ac.id the heath forest in kalimantan is renowned as a source of medicinal herbs for the dayak tribe. this study seeks to examine the use of medicinal plants from heath woods by the dayak maanyan in central kalimantan and to assess the potential of medicinal plants depend on disturbances. the gathering of information on the use of medicinal herbs was conducted using semi-structured interviews. utilizing the snowball technique, the main informant is determined. observed forms of heath forest were classified as follows: i secondary heath forest with ancient growth, ii) relatively disturbed young secondary heath forest, and iii) burnt heath forest. path and square measuring plots were employed to obtain data on the vegetation. the use of medicinal plants was studied using a tabulation matrix. for vegetation analysis, the number of species and the shanon-wieneer diversity index (h') was employed as parameters. as medicinal resources, the dayak maanyan people use thirty kinds of trees and fifteen types of undergrowth from the heath forest. 24 of 27 species of old-growth heath forest trees were utilized for medicinal purposes. the remaining 12 species of the 17 species of slightly damaged juvenile heath forest trees were employed as therapeutic ingredients. only four of the remaining five tree species in burnt heath woodlands were recorded as being used as medicinal ingredients. in old-growth heath forests, tree diversity and regrowth index were in the low range (h'=2.6-2.87). the tree diversity and regeneration index of young heath forests fell within the low to moderate range (h'= 1.09 – 2.56). the index of burnt heath forest's tree variety and regeneration is poor (h' = 0.98 – 1.5). in heath woods, disturbance and deforestation affect medicinal plant biodiversity. key words: biodiversity, deforestation, heath forest, dayak maanyan tribe, medicinal plant. 1. introduction central kalimantan, with a land size of 15,514,811.71 hectares, is one of the world's largest forest cover regions (government, 2015). the recorded forest area in central kalimantan is 12,697,165 hectares ((incas), 2022). forest regions store medicinal plant germplasm as a kind of biodiversity. the indigenous population has employed plants as ingredients in traditional medicine. society believes traditional ingredients derived from plant parts, such as roots, leaves, flowers, and wood, can cure many maladies (suparni, 2012). the dayak maanyan tribe in dusun selatan district, south barito regency, central kalimantan province has been identified as utilizing the forest for medicinal purposes. the vegetation community surrounding the dusun selatan subdistrict is a heath forest. low-fertility heath woodland is based on soil characteristics dominated by sand layers (adawiyah, 2019). in heath woods, podzolic soils and low soil ph are prevalent (miyamoto et al., 2016). in heath forests, few types of vegetation can adapt and thrive due to the soil's infertility (kartawinata, 1980). heath forest vegetation communities can yield therapeutic plants. it is believed that the ability of plants to create secondary metabolites, which are the basis for employing plants as a source of medicinal substances, is tied to their ability to adapt to new plants (kissinger et al., 2013). the heath woodland provides traditional remedies. communities have utilized the heath forest's richness of medicinal plants as a source of medicinal herbs (adawiyah, 2019). in indonesia, numerous forests, including heath forests, have been deforested. in 2017-2018, deforestation in indonesia reached 0.48 million hectares per year, and in central kalimantan, it reached 27,240.2 hectares per year (klhk, 2018). land conversion for infrastructure, communities, agriculture, mining, plantations, and forest fires can cause deforestation. in 2015, 1,7 million hectares of indonesian forest were affected by flames. this fire affects transportation, health, the economy, and the environment (adiputra, 2018). deforestation caused by forest fires increases global warming. due to land conversion, logging, and forest fires, heath forests in the dusun selatan subdistrict also sustained destruction, according to field observations. mailto:kissinger@ulm.ac.id agbioforum, 24(2), 2022 | 188 kissinger — heath forest as a source of medicinal plants for the maanyan dayak tribe in central kalimantan, indonesia… deforestation can potentially diminish forest biodiversity, particularly heath forest medicinal plant supplies. managing the potential of plant species variety as a source of medicinal components is one of the conservation strategies to decrease heath forest destruction. documenting and analyzing the community's use of medicinal plants must precede the management of heath forest medicinal plants. establishing local community knowledge regarding the utilization of plant resources can significantly aid in the conservation of biodiversity and the domestication of high-value medicinal plants. this study aims to examine the utilization of heath forest medicinal plants by the dayak maanyan people in dusun selatan district, south barito regency, central kalimantan, as well as compare the potential of medicinal plants based on the extent of heath forest disturbance caused by deforestation. 2. research method 2.1 location, object, and research equipment dusun selatan district, south barito regency, central kalimantan, indonesia, was the location of the study. the focus of this study is the flora of the heath woodland in madara village, dusun selatan district. people from the dayak maanyan subdistrict of dusun selatan who are knowledgeable about traditional medicine provided information on medicinal plants. figure 1 illustrates the position of the heath forest. figure 1: location of sampling of heath forest vegetation the research equipment included survey equipment (gps to establish location, phi band to measure diameter, a compass to determine direction, and tally sheets), documentation equipment, interview equipment such as a questionnaire list on the therapeutic use of forest plants, and writing instruments. 2.2 data collection interviews and measuring plots were utilized to collect information. semi-structured interviews were used to collect information on the effectiveness and application of medicinal herbs (kissinger et al., 2013). people from the dayak maanyan tribe who are knowledgeable about the medicinal usage of plants were interviewed. several informants chosen using a purposive sampling method were interviewed informally using an interview guide (selected directly). the acquired data were completed using a combination of informant selection and snowball sampling. this study's data source sampling technique is depicted in figure 2. (sugiyono, 2009). figure 2. the process of collecting data samples with a combination of purposive and snowball techniques. identifying the first informant a (the crucial informant) g i d f e h j a b c agbioforum, 24(2), 2022 | 189 kissinger — heath forest as a source of medicinal plants for the maanyan dayak tribe in central kalimantan, indonesia… was deliberate. using the information provided by a, they proceed to b and c. because there is still a shortage of information, they eventually dig up to d, then f, and because they still have not uncovered a great deal of information (they are not saturated), they are forwarded to e, h, g, i, and finally j. until j, the data is complete or contains no new information, and there are sufficient informants, so there is no need to add more. community leaders, traditional leaders, traditional healers, traditional healers, or those nominated by key informants who have experience using medicinal herbs as traditional medicine were recruited as informants. to obtain data on vegetation, measurement plots were established in a heath forest. combining routes with square observation plots or plot lines creates measurement plots. the length of the path is 1 kilometer. for vegetation measurement activities, two lanes were created for the old secondary forest, undisturbed (old growth), and the new secondary heath forest, relatively disturbed. after 5 years of burning, one lane is created in the heath forest. the square plots within the lane are 20m x 20m in size (soerianegara and indrawan, 2002). systematically, 20m x 20m square plots are put out in lanes with 100 m between each plot. 25 observation plots of 20m x 20m were created for each old secondary forest and juvenile secondary forest. each 20m x 20m observation plot contained subplots of 2m x 2m (measurement of seedling level), 5m x 5m (measurement of sapling level), 10m x 10m (measurement of pile level), and 20m x 20m (measurement of pile level) (level measurement for trees). the determination of the growth rate is based on kusmana (1997)'s criteria for growth rate. the obtained information comprised the species and quantity of individuals at each stage of vegetative development (seedlings, saplings, poles, and trees). the growth rate of poles and trees was evaluated by measuring their diameters. 2.3 data analysis a tabulation matrix containing local names, scientific names, and forms of consumption was used to examine the species makeup at each level. old-growth secondary heath forests (largely undisturbed), young-growth secondary heath forests (somewhat disturbed), and burnt heath forests were compared. comparable parameters included stand potential, variety index, varieties of medicinal plants, and plant parts. using a method based on the number of individuals per hectare, stand potential was assessed (almarief, 2018). the following equation is used to calculate the potential (n/ha): potential of a species = number of individuals of a species sample plot area) vegetation diversity values were measured using the shannon-wienner diversity index approach (ludwig & reynolds, 1988). the calculation of the shannon-wienner index value (h') uses the following equation: h' =− ∑ 𝑃𝑖 ln 𝑃𝑖 where pi =( 𝑁𝑖 𝑁 ) h' = diversity index of shannon-wienner pi = proportion of i-th species ni = number of individuals of type i n = number of individuals of all species the diversity index criteria used follow the species diversity index criteria, according to odum (1993), as in table 1. table 1. diversity index criteria diversity index criteria h' ≥ 3.00 tall 2 ≥ h' <3.00 currently h' < 2 low the potency of medicinal plants was determined based on the quantity of medicinal plants and the community of dayak maanyan's recognition of their medical properties. reference data supplement the efficacy of medicinal plants and the portions of the plants employed kissinger et al., 2013). a comparison matrix was developed to examine differences in the biodiversity of medicinal plants based on the disturbance degree of heath forest. 3. result and discussion table 2 displays the findings of the investigation of species composition and vegetative potential in secondary heath forests of ancient growth. table 2 demonstrates that old-growth secondary forest has a total of 27 plant species. the range of species between vegetation levels is between 16 and 20 species. there are 17 species of saplings, 16 species of poles, and 19 species of trees in the vegetative seedling stage. at the study site, there were fewer species in the seedling and sapling stages than in the old-growth heath forest of the nyaru menteng arboretum palangkaraya, central kalimantan (23 and 24 species for the seedling and sapling stages). at the same time, the number of poles and tree species was greater in the research area. nyaru menteng arboretum's old-growth heath woodland contains 14 species at the pole level and 13 species at the tree level (azizah, 2020). the species composition of heath forest is inferior to that of old-growth peat swamp forest, which contains 99 species of trees and regrowth (kalima, 2019). the species composition depicted in table 2 demonstrates that the species that grow and thrive in the ancient heath forest are introduced species. seventeen families have been found in heath forests, with dipterocarpaceae and myrtaceae being the most prevalent (bruenig et al., 1996). the growth rates of 10 types of vegetation at the tree, pole, sapling, and seedling levels were identified. this occurrence suggests that the regeneration of the plant species that comprise the old-growth heath forest is well begun. the vegetation types s.balangeran, callophylum sp., c.arborescens, t.obovata, and c.rotundatus are typical in heath forests (kartawinata, 1980). table 3 displays the composition of tree-level vegetation species and regeneration in young (relatively damaged) secondary heath forests. agbioforum, 24(2), 2022 | 190 kissinger — heath forest as a source of medicinal plants for the maanyan dayak tribe in central kalimantan, indonesia… table 2. the composition of vegetation in old-growth secondary forest nu local name scientific name family n/ha of vegetation level seedling sapling pole tree 1 alaban vitex pubescens verbenaceae 8 2 balangeran shorea balangeran dipterocarps 400 40 20 12 3 balik angin mallotus paniculatus euphorbiaceae 500 50 4 bangkirai shorea laevis dipterocarps 300 48 50 12 5 bati-bati adina minutiflora rubiaceae 48 6 bintangur callophylum sp dipterocarps 1200 80 12 7 irat cratoxylon arborescens gutiferae 300 8 8 jambu burung syzygium inophylla myrtaceae 800 176 40 12 9 kelumpang sterculia foetida malvaceae 4 10 kemisi syzygium tetrapetrum myrtaceae 200 48 11 kemuning xanthophyllum stipitatum polygalaceae 300 12 kuranji dialium larium fabaceae 500 80 50 8 13 madang litsea sp euphorbiaceae 800 128 70 8 14 masupang shorea velunosa dipterocarps 1400 256 50 24 15 meranti shorea coreacea dipterocarps 200 20 20 12 16 meranti lilin shorea teysmanniana dipterocarps 500 60 40 16 17 nyatoh palaquim sp sapotaceae 32 10 8 18 palawan tristaniopsis obovata myrtaceae 400 19 pasak bumi eurycoma longifolia simaroubaceae 400 48 20 rengas gluta renghas anacardiaceae 300 80 16 21 resak vatica rassak dipterocarps 400 50 4 22 simpur dillenia indica dilleniaceae 8 23 tarap artocarpus elasticus moraceae 500 128 40 8 24 punak tetramerista glabra. tetrameristicaceae 4 25 tiwadak arthocarpus champeden moraceae 80 20 26 tumih combretocarpus rotundatus rhizoporaceae 300 16 50 27 tutup kabali diospyros borneensis ebenaceae 700 112 20 4 summary 10400 1400 660 188 table 3: the composition of vegetation in young secondary forest (relatively disturbed) nu local name scientific name family n/ha of vegetation level seedling sapling pole tree 1 akasia acacia mangium fabaceae 80 10 2 alaban vitex pubescens verbenaceae 1700 80 40 3 balangeran shorea belangeran dipterocarps 500 224 120 30 4 durian durio zibethinusmurr bombaceae 70 20 5 irat cratoxylon arborescens gutiferae 100 16 30 6 jambu burung syzygium inophylla myrtaceae 100 100 25 7 jaring archidendron jirninga fabaceae 20 8 karet hevea brasiliensis euphorbiaceae 300 16 50 9 sepat macaranga triloba euphorbiaceae 32 40 20 10 kuranji diaulum laurium fabaceae 30 11 madang litsea sp euphorbiaceae 16 50 10 12 meranti lilin shorea teysmanniana dipterocarps 30 13 petai parkia speciosa fabaceae 100 14 tarap artocarpus elasticus moraceae 30 15 tumih combretocarpus rotundatus rhizoporaceae 16 30 5 summary 2700 400 820 120 as a result of land conversion for crops and settlements, young secondary heath forest deteriorates. the discovery supports that the somewhat disturbed secondary heath forest is located close to community gardens and planting sites. the greatest number of species occurred at the pole vegetation stage (15 species), while only five were present at the seedling stage. how many plant species, including durio zibhetinus, hevea brasiliensis, parkia speciose, and macaranga triloba, are planted intentionally by the community in young secondary heath forests? acacia mangium is an imported alien species found in young secondary heath woodlands. s. balangeran is the sole species with complete seedling, sapling, pole, and tree levels of vegetation. this condition is indicative of the disturbance of forest regrowth. table 4 displays the species composition of tree-level and regeneration vegetation in burnt heath woods. table 4: the composition of vegetation in burned heath forest nu local name scientific name family n/ha of vegetation level seedling sapling pole tree 1 alaban vitex pubescens verbenaceae 1500 240 32 18 2 balangeran shorea belangeran dipterocarps 7667 1227 66 21 3 galam m. cajuputi myrtaceae 3334 53 22 4 kemisi s. tetrapetrum myrtaceae 3334 534 24 5 jambu burung syzygium inophylla myrtaceae 8 24 15,835 2054 152 63 agbioforum, 24(2), 2022 | 191 kissinger — heath forest as a source of medicinal plants for the maanyan dayak tribe in central kalimantan, indonesia… five years after a fire, a burnt heath woodland has five tree species and is regenerating. compared to old-growth and young secondary heath forests, the number of individuals at the seedling and sapling stages increased. in contrast, the number of individuals at the tree and pole stages declined. there are four species of seedlings and saplings, five species of poles, and three types of mature trees. compared to prior research findings in regularly burned heath forests, the number of tree species and regeneration is far greater in these data. repeatedly burned heath woodlands typically leave two species associations: c.rotundatusm.cajuputi and c.rotundatus-s.balangeran (kissinger, 2012). the diversity and usage of vegetation types in the three analyzed regions produced distinct outcomes. table 5 displays the size of the diversity index and the maanyan dayak community's exploitation of secondary heath forest vegetation as a source of medicinal components. table 5: diversity index and medicinal use of vegetation from the old growth of the heath forest vegetation species diversity index (h') of vegetation level part of vegetation for medicinal use seedling sapling pole tree v. pubescens 0.14 leave and root for fever, diarrhea, and cought s. balangeran 0.13 0.1 0.11 0.18 stem bark for antidiabetic, diarrhea, and malaria m. paniculatus 0.15 0.20 leave for wound and hepatitis, stem bark for diarrhea and inflammation s. laevis 0.1 0.12 0.20 0.18 leave for antidiabetic, gout, cholestrol, and stamina a. minutiflora 0.12 leave for stomachache c. soulatri 0.25 0.16 0.18 leave and stem bark for wound and analgesic c. arborescens 0.1 0.14 leave, stem bark, and root for fever, cough, diarrhea, and wounds s. inophylla 0.2 0.26 0.17 0.18 fruit shell and stem bark for antidiabetic s. foetida 0.08 leave for constipation and back pain; stem bark for wound and scabies s. tetrapetrum 0.08 0.12 leave and stem bark for diarrhea, antidiabetic x. stipitatum 0.1 leave for implantation, antidiabetic d. laurium 0.15 0.16 0.20 0.14 leave for stomach ache, diarrhea, rheumatic disease, and stamina litsea sp 0.2 0.22 0.24 0.14 leave for ulcer medicine s. velunosa 0.27 0.31 0.20 0.27 s. coreacea 0.08 0.06 0.11 0.18 s. teysmanniana 0.15 0.13 0.17 0.21 leave and stem bark for wounds, stomachache, antidiabetic, and stamina palaquim sp 0.09 0.06 0.14 leave and root for wounds and diarrhea t. obovata 0.13 leave for diarrhea and stamina e. longifolia 0.13 0.12 root for malaria and stamina g. renghas 0.1 0.26 0.21 leave for itchy, fruit for fever and stomach ache, root for syphilis v. rassak 0.13 0.20 0.08 leave and stem bark for antidiabetic and stomach ache d. indica 0.14 leave for antidiabetic, enteritis, wound, implantation a. elasticus 0.15 0.22 0.17 0.14 leave for helminthic (anthelmintic), stem bark for stomach ache, back pain, and tree sap (latex) for diarrhea. t. glabra 0.08 leave for skin care a. champeden 0.16 0.11 leave for face masking, stem bark for malaria c. rotundatus 0.1 0.05 0.20 d. borneensis 0.18 0.2 0.11 0.08 stem bark: medicinal for fungal skin sum(h') 2.84 2.60 2.66 2.87 old-growth heath forests exhibited a modest plant diversity at all growth stages (h' = 2.6-2.87). twenty-four varieties of heath forest vegetation can be used as medicinal herbs. several dipterocarpaceae plants have not been utilized as therapeutic materials by the community. several sources show that the dipterocarpaceae family's dipterocarpaceae genus has therapeutic potential. dipterocarp species such as shorea, hopea, and vatica are an abundant source of oligostilbenoid (oligomer resveratrol) chemicals, flavonoids, phenylpropanoids, and triterpenoids (atun et al., 2004; hakim, 2002; ito et al., 2004; tanaka et al., 2000). variation in the diversity index value of young secondary heath forest vegetation was observed (relatively disturbed). there was a reduction in the number of medicinal plants found in new heath woods (table 6). according to table 6, the diversity index of heath forest seedlings, saplings, and trees fall into the low group (h'= 1.09, 1.36, and 1.82, respectively), whereas the degree of pole vegetation is classified as medium (2.56). even yet, new secondary heath woods continue to provide dayak maanyan with therapeutic elements. around twelve varieties of tree vegetation and regeneration can be utilized as therapeutic components. young secondary heath forests have a lower diversity index and fewer medicinal plant species than older heath forests. in heath forests, forest fires are related to a reduction in biodiversity and a loss of medicinal plants. table 7 displays the diversity and benefits of the secondary vegetation that makes up the burnt heath forest. overall, the vegetation diversity index values for seedlings, saplings, poles, and trees are low. m. cajuputi is an exclusive resident of burnt heath woodlands. five plant species are employed as therapeutic substances. the number of vegetation types that can be used as therapeutic materials at the tree level is the smallest (3 species), although there are 5 such species at the pole level. table 8 compares numerous vegetative metrics between secondary heath forests of old growth, secondary heath forests of young development, and burnt heath forests. agbioforum, 24(2), 2022 | 192 kissinger — heath forest as a source of medicinal plants for the maanyan dayak tribe in central kalimantan, indonesia… table 6: diversity index and medicinal use of vegetation species from young secondary heath forest vegetation species diversity index (h') of vegetation level part of vegetation for medicinal use seedling sapling pole tree a. mangium 0.23 0.21 v. pubescens 0.29 0.32 0.15 leave and root for fever, diarrhea, and caught s. balangeran 0.31 0.32 0.28 0.35 stem bark for antidiabetic, diarrhea, and malaria d. zibethinus 0.21 0.3 root, stem bark for antidiabetic; fruit shell for fungal diseases c. arborescens 0.12 0.13 0.12 leave, stem bark and root for fever, cough, diarrhea, and wounds s. inophylla 0.12 0.26 0.33 fruit shell and stem bark for antidiabetic a. jiringa 0.09 fruit shell and stem bark for antidiabetic h. brasilisiensis 0.24 0.13 0.17 m. triloba 0.20 0.15 0.3 leave for digestive medicine d. laurium 0.12 leave for stomach ache, diarrhea, rheumatic disease, and stamina litsea sp 0.13 0.17 0.21 leave for ulcer medicine s. teysmanniana 0.12 leave and stem bark for wound, stomachache, antidiabetic, and stamina p. speciosa 0.26 leave for wound; fruit shell for vitality a. elasticus 0.12 leave for helminthic (anthelmintic), stem bark for stomach ache, and back pain; tree sap (latex) for diarrhea c. rotundatus 0.13 0.12 0.13 sum(h') 1.09 1.36 2.56 1.82 table 7: diversity index and medicinal use of vegetation species from burned hemp forest vegetation species diversity index (h') of vegetation level part of vegetation for medicinal use seedling sapling pole tree v. pubescens 0.31 0.35 0.32 0.36 leave and root for fever, diarrhea, and caught s.balangeran 0.35 0.33 0.37 0.37 stem bark for antidiabetic, diarrhea, and malaria m. cajuputi 0.25 0.22 0.27 root, stem bark for antidiabetic; fruit shell for fungal diseases on skin body s.tetrapetrum 0.09 0.08 0.28 leave and stem bark for fever, cough, diarrhea, and wounds s. inophylla 0.27 0.37 fruit shell and stem bark for antidiabetic summary 1.00 0.98 1.50 1.09 table 8: comparison of the values of several vegetation parameters between the secondary forest of old growth heath, young heath, and burnt heath heath forest type number of species number of families number of medicinal plants potential of vegetation (n/ha) seedling sapling pole tree secondary forest (old growth) 27 17 24 10,400 1,400 660 188 secondary forest (relatively disturbed) 15 10 12 2700 400 820 120 secondary forest (burned heath) 5 3 4 15,835 2054 152 63 when the heath forest was disturbed, the number of species, families, medicinal plants and individual potency/ha decreased. most forest fires result in the extinction of medicinal plant species. figure 3 depicts the decreasing number of species, number of families, and number of medicinal plants in distinct types of heath forests. figure 3: comparison of the number of species, families, and medicinal plants between heath forest types 27 15 5 17 10 3 24 12 4 0 5 10 15 20 25 30 secondary forest (old growth) secondary forest (relatively disturbed) secondary forest (burned kerangas) trend of decreasing number of species, family and medicinal plants due to heath forest deforestation number of species number of family number of medicinal plant agbioforum, 24(2), 2022 | 193 kissinger — heath forest as a source of medicinal plants for the maanyan dayak tribe in central kalimantan, indonesia… it will be difficult, especially spontaneously, to restore heath woods that have experienced damage or land degradation (kissinger et al., 2013). heath forest recovery after the damage is greatly impacted by vegetation structure, disturbance amount and intensity, management, and forest biotic and abiotic properties (foster et al., 2018). the trend of declining biodiversity due to deforestation and degradation of heath forests is also observed in the undergrowth. table 9 displays the species makeup of the understory in old-growth heath forests, young secondary forests, and burned secondary heath forests. table 9: recapitulation of the composition of the understory species found at the study site nu the local name of the species scientific name i ii iii part of vegetation for medicinal use 1 akar kuning arcangelisa flava x root for liver disease and antidiabetic 2 alang-alang imperata cylindrica x x root for kidney disease, hypertension 3 bebawangan dianella nemorosa x x leave and root for carbuncle, acne, diarrhea 4 karamunting melastoma malabathricum x x x leave and stem bark for stomachache, wound 5 karepek dicranopteris linearis x x leave, stem, and root for diarrhea, headache 6 kelakai stenochlaena palustris x leave for blood booster, fever 7 mesisin rhodomyrtus tomentosa x x leave for stomachache, wound, and hypertension 8 kantong semar nepenthes ampularia x root for antidiabetic, stomachache, and cough 9 kantong semar nepenthes gracilis x x x root for antidiabetic, stomachache, and cough 10 kantong semar nepenthes mirabilis x x root for antidiabetic, stomachache, and cough 11 penawar sampai tinospora sp. x leave and stem for liver disease, fever, wound, antidiabetic, 12 rotan irit calamus trachycoleus x fruit for anti-nausea 13 rumput fatimah cyperus rotundus x leave and root for dysentery, diarrhea 14 saluang belum lavanga sarmentosa x stem and root for back pain, kidney disease, vitality 15 sarang semut mimercodia dancers x tuber part for hypertension, rheumatism, gastric where: i= old growth, ii= young secondary forest, iii= secondary forest after burned there are fifteen species of undergrowth in a heath forest. there are twelve types of undergrowth in old-growth heath forests. there were seven and six species of undergrowth in the secondary forest and burned secondary heath forest as a result of disturbance to the heath forest. due to heath forest deterioration, protected plant species (nepenthes spp.) are also decreasing in number. in degraded heath woodland, weeds such as d. linearis, s.palustris, and i. cylindrica developed rapidly and dominated the soil surface. stenochaena palustris was the most prevalent plant species found in a burned region of heath forest (mojiol et al., 2010). in disturbed heath forests, the dominance of particular plants on the forest floor may hinder the natural regeneration of other species from being introduced. table 10 displays some of the identification results on the use of heath forests as a source of medicinal substances by the maanyan dayak as a whole. table 10: utilization of medicinal plant species from the heath forest by the maanyan dayak community part of plant vegetation habitus number of species number of families number of medicinal plants root leave stem stem bark fruit the others tree species 34 19 30 5 22 1 14 6 1 undergrowth 15 12 15 9 6 2 2 1 1 49 31 45 14 28 3 16 7 2 45 plant species (30 tree species and 15 undergrowth species) and 30 plant families make up the entire number of medicinal plants utilized by the dayak maanyan. adawiyah (2019) observed that the heath forest in palangkaraya, central kalimantan, included 28 plant species that might be utilized as medicinal materials (19 tree species and 9 undergrowth species). iliona (2003) stated that the heath forest in the hampangen educational forest, central kalimantan, contained 38 species and 25 families of potential medicinal plants. these findings suggest that the dayak maanyan group in the dusun selatan district of the south barito regency uses more medicinal plants from heath forests. the dayak maanyan population uses trees more than any other habitat type, by 61.2% compared to other habitat types. the majority of medicinal plants in forest areas of kalimantan have a tree-like habit. the botanical gardens of the university of mulawarman samarinda, which are a type of heath woodland, contain 42% of the world's treeforming medicinal plants (jannah, 2004). (i'ismi b, 2018) in west kalimantan, tree species are the most favored (39.2%) source of medicinal compounds. this research suggests that trees are the predominant species in the heath forest used as a therapeutic element by the dayak maanyan population. the maanyan dayak community uses forty percent of the plant's leaves as a source of therapeutic compounds. after the stem, bark and root are the most commonly utilized medicinal components (23% and 20%, respectively). i'ismi (2018) found that people in west kalimantan use leaf portions as a therapeutic ingredient more than other plant parts (40.6%). other extensively utilized plant elements include plant roots and bark. noorhidayah (2005) discovered that the great employment of leaves in medicine is attributable to leaf material that is readily accessible, can be harvested in huge numbers, and is agbioforum, 24(2), 2022 | 194 kissinger — heath forest as a source of medicinal plants for the maanyan dayak tribe in central kalimantan, indonesia… available year-round. the leaves are also the simplest to manipulate or combine. the high usage of these leaves is a good example of community wisdom because it has no impact on the development and growth of plant populations. 4. conclusion the dayak maanyan utilize heath woodland for medicinal purposes. the dayak maanyan community uses as many as 45 plant species (30 tree species and 15 undergrowth species) from the heath forest as therapeutic components. the dayak maanyan predominantly uses the plant's leaves as a medicinal component. utilizing the relatively conserved biodiversity of medicinal plants, the use pattern of leaves is a type of community wisdom. as a result of disturbances such as logging and fires, the biodiversity of medicinal plants in heath woods declines. in burnt heath woodlands, the number of medicinal plant species decreased the most. the slow rate of recovery from damaged heath forests shows that conservation measures against damage and deforestation prevention are the greatest option for preserving the biodiversity of medicinal plants in heath forests. references (incas), i. n. c. a. s. 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(2000). oligostilbenoids in stem bark of vatica rassak. phytochemistry, 54(1), 63-69. doi: https://doi.org/10.1016/s0031-9422(00)00026-1 https://doi.org/10.1007/s00468-015-1210-7 https://d1wqtxts1xzle7.cloudfront.net/7641332/5356-16569-1-pb-libre.pdf?1390852538 https://d1wqtxts1xzle7.cloudfront.net/7641332/5356-16569-1-pb-libre.pdf?1390852538 https://doi.org/10.1016/s0031-9422(00)00026-1 agbioforum, 25(2): 129-136. ©2023 agbioforum tanjung & muhafidin — rice import policy: assessing the income of farmers from agriculture in indonesia rice import policy: assessing the income of farmers from agriculture in indonesia ali mukti tanjung universitas pembinaan masyarakat indonesia, medan, indonesia, email: alimuktitanjung445@gmail.com didin muhafidin universitas padjadjaran, bandung, indonesia, email: didin.muhafidin@gmail.com the amelioration of farmers' well-being constitutes a pivotal concern on a global scale, necessitating the conscientious attention of seasoned regulatory authorities and recent scholarly investigations. this article thus delves into an examination of the ramifications of rice import policies, encompassing facets such as rice importation, domestic rice production, and international trade, with a particular focus on their influence on the income of farmers in indonesia. to discern patterns and interdependencies, the study incorporates population and economic growth as control variables for predicting farmers' income. employing secondary data extracted from the world development indicators (wdi) and statista spanning the years 1991-2022, the article adopts the dynamic autoregressive distributed lag (dardl) approach to scrutinize the relationships among the aforementioned variables. the empirical findings illuminate a negative correlation between rice imports and farmers' income, signifying a potentially adverse impact. conversely, rice production, international trade, population, and economic growth exhibit positive associations with farmers' income in the indonesian context. these outcomes furnish valuable insights for regulatory bodies, guiding them in formulating policies geared towards augmenting farmers' income. such initiatives may encompass the implementation of constraints on rice imports, alongside endeavours to enhance domestic rice production and facilitate international trade. keywords: rice import, rice production, international trade, population growth, farmers’ income, economic growth. 1. introduction farmers' income constitutes the monetary proceeds derived from agricultural endeavours, serving as the financial resources available to farmers for practical applications. the determination of farmers' income is susceptible to a myriad of challenges, including unpredictable weather conditions, alterations in policies, fluctuations in regulations, shifts in the pricing dynamics of agricultural outputs, and escalations in agricultural costs. these multifaceted factors collectively exert influence on the overall revenue generated from farming activities (ceballos et al., 2020). examining the magnitudes of farmers' income is imperative, with a heightened emphasis on ensuring its stability, which constitutes a pivotal determinant for the effective operation of agricultural enterprises. the oscillations in farmers' income wield a profound influence on pivotal aspects such as agricultural decision-making, farming strategies, and the overarching capacity of agricultural businesses to engender sustainability in their operational endeavours across successive years (noack & larsen, 2019). the variability inherent in farmers' incomes poses a significant challenge to agricultural administration and the formulation of public policies. attaining heightened stability in farmers' income, notwithstanding diverse contextual factors, holds the potential to enhance the financial resilience of farmers and redirect their focus towards agricultural development. consequently, the cultivation of sustainability in agricultural practices and outputs ensues. this resultant agricultural sustainability contributes to the uninterrupted provision of food for living organisms, fosters biodiversity and environmental preservation, and furnishes essential resources and raw materials for economic processes (baiyegunhi et al., 2019). farmers' income and agricultural growth are intricately interconnected, exerting mutual influence on each other. consequently, policies devised to govern agriculture and foster agricultural growth, encompassing facets such as rice importation, rice production, and international trade, possess the potential to significantly impact and sustain farmers' income. the rice import policy, elucidating the feasibility of meeting domestic rice requirements through foreign procurement, is instrumental in addressing food scarcity concerns. however, it simultaneously engenders implications for farmers' rights. the substantial influx of imported rice diminishes the demand for domestically cultivated rice, thereby diminishing overall agricultural revenues. this, in turn, results in a concomitant reduction in farmers' income (anang et al., 2020). rice production entails the cultivation and processing of rice to render it in an edible form. the augmentation of rice production facilitates farmers in offering a more substantial rice supply to both national and international markets. this not only satisfies the domestic and global demand for rice but also yields substantial profits. the resultant agricultural revenues derived from the sale of rice serve to augment farmers' income (anang & yeboah, 2019). international trade denotes the execution of commercial activities on a global scale, encompassing the import and export of specific commodities. the involvement of agricultural enterprises in international trade serves to amplify agricultural production and enhance marketing efforts, consequently fostering an upswing in farmers' income (chuang, 2019). the present investigation directs attention towards the impact of rice import, rice production, and international trade on the income of farmers in indonesia. indonesia boasts a substantial mailto:alimuktitanjung445@gmail.com mailto:didin.muhafidin@gmail.com agbioforum, 25(2), 2023 | 130 tanjung & muhafidin — rice import policy: assessing the income of farmers from agriculture in indonesia expanse of agricultural land, with nearly 30% of its total area dedicated to agricultural activities, engaging millions of farmers in income-generating endeavours. the agricultural sector, contributing to 13.7% of the indonesian economy, holds considerable significance. reflecting the magnitude of agricultural engagement, the population of indonesia reached 275,501,339 in 2022, with the agricultural sector furnishing employment opportunities for 28.99% of the populace. noteworthy data from february 2022 indicates that 40.64 million farmers were actively engaged in agricultural pursuits. undoubtedly, farmers serve as the linchpin of agriculture, assuming a pivotal role despite encountering numerous challenges in crop cultivation, often remunerated with meagre wages (ma et al., 2019). as of january 2022, the daily average income was reported at 52.54 thousand rupiah, a sum deemed insufficient for the livelihoods of small farmer families, who constitute 93% of the overall farming demographic. their meagre earnings fall notably short of meeting the demands associated with their occupation. notwithstanding indonesia's commendable production of diverse agricultural commodities, including palm oil, coffee, tea, spices, cassava, and natural rubber, it is particularly renowned for its paddy rice production, serving as the staple food in the indonesian context. indonesia's prowess in rice production has earned it a position among the top three global rice producers, and it holds the 64th rank in terms of rice exports. in the year 2021, indonesia's total rice export amounted to $4.13 million (desmiwati et al., 2021). indonesia engages in rice trade with several nations, with its primary rice export destinations including angola, the philippines, france, brunei, and senegal. conversely, indonesia sources rice imports from india, singapore, malaysia, vietnam, and thailand. in the current year, the nation has imported 1.59 million tons of rice, catering to both immediate consumption and future reserves. the country specializes in cultivating diverse rice varieties, such as rojo lele, pandan wangi, manthik, beras merah, satra romos, cianjur, sticky long-grain rice, jasmine rice, among others, contributing to a rich mosaic of 7,000 rice varieties. in 2018, indonesia achieved a noteworthy rice production output of 83.0 million tons, utilizing an expansive land area of 10 million hectares for rice cultivation (ariyadi, 2021). while the indonesian agricultural sector is burgeoning and significantly contributing to economic growth, the overall well-being of farmers remains a key determinant for agricultural development. this study, centred on farmers' income, addresses the specific needs of the indonesian agricultural landscape. the primary aim of this investigation is to assess the influence of rice import, rice production, and international trade, alongside economic and population growth as control factors, on farmers' income. this current research offers valuable insights for academics due to its distinctive literary contributions. notably, it distinguishes itself from prior studies wherein authors separately investigated the influence of rice import and international trade on farmers' income; in contrast, this study concurrently assesses the combined effects of both factors. moreover, prior research has predominantly focused on either agricultural production or trade individually as determinants of farmer income, whereas this study significantly enriches the literature by examining the roles of rice import, rice production, and international trade in farmers' income. thirdly, this study takes a pioneering approach by scrutinizing the interplay between rice import, rice production, international trade, economic growth, population growth, and farmers' income in the context of indonesia. the research comprises five integral sections, with the second segment dedicated to a comprehensive review of pertinent literature pertaining to the interrelated aspects under consideration. the third section delineates the research methodology employed in the study. subsequently, the fourth segment presents the findings, substantiated by a synthesis with relevant prior studies. the final section encapsulates the implications drawn, conclusions reached, and acknowledges the inherent limitations of the study. 2. literature review the income of farmers is contingent upon both agricultural production and trade, thereby rendering it susceptible to the influences of rice import, rice production, international trade, economic growth, and population growth. various scholars have explored the dynamics of these interrelations with farmers' income, each offering distinct perspectives. the subsequent paragraphs provide a comprehensive review of the literature to scrutinize the nuanced connections between rice import, rice production, international trade, economic growth, population growth, and farmers' income. within the realm of rice importation, the fulfilment of domestic rice requirements, and more broadly, food consumption needs, is achieved through the procurement of rice from international sources. in a scenario where there exists a proclivity among the populace for foreign rice products, leading to a preference for rice imports over domestically cultivated varieties, a surge in demand for imported rice ensues. this phenomenon induces a detrimental impact on domestic farmers, who experience a concomitant reduction in the sale of domestically produced rice, thereby diminishing their overall income (yusuf et al., 2020). qian et al. (2020) conducted a study using a partial equilibrium model to examine the impact of rice import on food security and farmer income in china. utilizing national annual time series data since 1990, the research contends that in a country where the importation of agricultural food products is permitted, and there is a proclivity to purchase rice from foreign agricultural systems, the monetary benefits accrue to foreign farmers. consequently, farmers in the domestic agricultural system reduce rice production to meet diminished demand, resulting in lower incomes and reduced profits from sales. ojo and baiyegunhi (2020), the examination of the correlation between rice importation and farmer income is undertaken, employing the switching regression model (esrm) to scrutinize this nexus within the context of south-west nigeria. the study posits that the enactment of an agricultural import policy, specifically for rice, results in the satisfaction of domestic rice consumption demands through the acquisition of rice products from foreign nations. subsequently, the demand for domestically cultivated agricultural products diminishes, leading to a decline in farmers' profits from sales. consequently, the escalation in rice imports is associated with a reduction in farmers' income. agbioforum, 25(2), 2023 | 131 tanjung & muhafidin — rice import policy: assessing the income of farmers from agriculture in indonesia the cultivation of rice holds significant importance as a primary food source. when farmers demonstrate a committed focus on the production of agricultural commodities, such as rice, they actively contribute to the national food supply, subsequently augmenting their overall sales. the consequential escalation in total agricultural sales not only contributes substantially to the income derived from agricultural activities but also serves as an incremental addition to the regular income of farmers. consequently, the augmentation in rice production within the agricultural sector is directly associated with an increase in farmers' income (ghosh et al., 2021). emran et al. (2021) focus of this research centres on the impact of rice production on farmers' income. data for the study were procured through a panel survey dataset encompassing 32 variables, gathered from 502 farm households situated in coastal bangladesh spanning the years 2005 to 2015. the investigation posits that the augmentation in rice production within the agricultural sector, coupled with the processing of rice through rice plants, amplifies the overall rice supply originating from the agricultural domain. following the fulfilment of domestic food requirements, surplus supplies become available for presentation in the international market. consequently, revenue accrues from both national and international markets, resulting in a discernible increase in farmers' income. tanjung (2020) examines the impact of rice production on farmers' income using data collected through questionnaires and interviews from rice farmers in labuhan batu district. utilizing the swot analysis method, the study asserts that enhanced agricultural production leads to increased sales and greater profits. efficiency in rice production enables agricultural firms to meet customer demands, resulting in planned earnings from rice sales. the augmented agricultural earnings consequently contribute to an increase in farmers' income. a trade policy supporting international trade offers numerous economic advantages. whether in the form of imports or exports, international trade creates opportunities for economic growth and raises incomes for producers and laborers. in the agricultural sector, importing resources, raw materials, or technologies facilitates agriculture, while exports contribute to increased sales. consequently, international trade enhances the domestic agriculture system and augments agricultural revenues, thereby increasing incomes for farmers engaged in agricultural services (assagaf et al., 2020). werner et al. (2019) assess the impact of international trade on farmers' income in the dominican republic and central america. the research data were derived from a case study analysing the implementation of the dominican republic-central america free trade agreement (cafta-dr) spanning from 1990 onward. the study posits that active engagement in international trade empowers a country to import cutting-edge agricultural technologies. the incorporation of innovative technologies contributes to agricultural growth, enabling the generation of higher revenues for farmers. banik et al. (2019) examine the interplay between international trade, innovative strategies, and farmers' income. the study suggests that when a country's government formulates a trade policy to foster international trade and grants agricultural firms the capacity to engage in such trade, along with the ability to import agricultural resources and technologies, these firms, equipped with modern resources and technologies, can execute innovative strategies that yield remarkable results in agricultural production. this, in turn, translates into heightened marketing opportunities for agricultural products. consequently, the resulting larger sales generate greater profits, thereby affording farmers a higher consumable income. within an expanding economy, various economic sectors witness strengthened financial positions over time, enabling them to embrace innovative resources. analogously, the agricultural sector, amidst this economic growth, fortifies its financial standing and incorporates innovation into its practices. the adoption of innovative technologies serves to address numerous agricultural challenges, enhance processes, and elevate the production of high-quality agricultural goods. this amplification and value addition to the agricultural domain result in augmented agricultural revenues and a subsequent increase in farmers' incomes (brookes & barfoot, 2020). hemming et al. (2018) delves into the examination of the influence of economic growth on farmer income. the study constitutes a review encompassing 16 studies utilizing computable models and 15 experimental and quasiexperimental studies, primarily concentrated in subsaharan africa. the findings underscore that a robustly growing economy garners a favourable reputation in the international market, thereby enticing foreign entities to engage in commercial dealings within the country. this, in turn, fosters foreign investment and administration. such developments collectively mitigate financial challenges, enhance operational efficiency, and augment the value of production across diverse economic sectors, including agriculture. the resultant growth in the agriculture sector not only amplifies agricultural revenues but also culminates in an upswing in farmers' income. yaqoob et al. (2023) investigates the correlation between economic growth and farmers' income. employing a three-state panel analysis with a sample comprising india, pakistan, and bangladesh, the study utilizes panel data spanning from 1973 to 2020. farm input data is analysed using an autoregressive distributed lag model with a pooled mean group (ardl pmg) approach, recognized for its highly dynamic modelling capabilities with heterogeneous data. the study underscores that elevated economic growth fosters enhanced relationships between the agricultural sector and foreign investors and businesses within the country. in such contexts, agricultural practices witness improvement, and the marketing of agricultural products experiences an upsurge, successfully meeting customer requirements. the resultant increase in agricultural marketing leads to greater revenues, thereby affording farmers higher incomes. population growth serves as a determinant of the resident population within a given region, and this burgeoning populace necessitates access to fundamental life necessities for sustenance. the escalation in population, attributed to heightened population growth rates, induces an augmented demand for essential goods such as food, energy resources, clothing, and the like. the agricultural sector, being a primary source of finished goods or raw agbioforum, 25(2), 2023 | 132 tanjung & muhafidin — rice import policy: assessing the income of farmers from agriculture in indonesia materials for various economic domains, is compelled to intensify its operations and elevate production levels. the ensuing agricultural marketing activities not only result in an overall increase in revenues for the designated period but also contribute to an augmentation of farmers' incomes (akbari et al., 2020). maja and ayano (2021) examines the impact of population growth on farmers' income within low-income developing countries. elevated population growth prompts an increased demand for essential commodities, particularly food products and other fundamental necessities. given that a significant portion of these essential goods is derived from agriculture or agrobased enterprises, there arises a heightened need for agricultural products, necessitating an increase in agricultural production. the expansion of agricultural practices to meet market demands not only enhances the sources of revenue but also results in an upward trajectory of farmers' income levels. giller et al. (2021) investigates the influence of population growth on farmers' income within distinct farming systems in mali, ethiopia, ghana, tanzania, malawi, and uganda. regions with substantial population concentrations draw government attention during the formulation of developmental initiatives. in such regions, agricultural growth and the well-being of farmers become focal points of concern. consequently, the introduction of modern agricultural tools and the establishment of new marketing channels for agricultural products ensue. this strategic approach facilitates financial development within the agricultural sector, potentially resulting in increased incomes for farmers. 3. research methods the study delves into an analysis of the effects of rice import, rice production, international trade, population, and economic growth on farmers' income in indonesia. control variables, such as population and economic growth, are incorporated to forecast farmers' income. secondary data, extracted from 1991-2022, is obtained using the statista&wdi. the study equation is presented below: 𝐹𝐼𝑡 = 𝛼0 + 𝛽1𝑅𝐼𝑡 + 𝛽2𝑅𝑃𝑡 + 𝛽3𝐼𝑇𝑖𝑡 + 𝛽4𝐸𝐺𝑡 + 𝛽5𝑃𝐺𝑡 + 𝑒𝑡 (1) where t = time period fi = farmers income ri = rice import rp = rice production it = international trade pg = population growth eg = economic growth the investigation employed farmers' income as the dependent variable, gauged through the annual percentage growth of agricultural, forestry, and fishing value added. additionally, a solitary predictor, rice import policies, was utilized, quantified by the import volume of rice (million metric tons), rice production (million metric tons), and trade (% of gdp). two control variables, economic growth (measured by gdp growth in annual percentage) and population growth (measured as annual percentage population growth), were incorporated. the detailed measurements are presented in table 1. table 1: variables and measurements. s# variables measurement sources 01 farmers income agricultural, forestry and fishing, value added (annual % growth) wdi 02 rice import import volume of rice (million metric ton) statista 03 rice production rice production (million metric ton) statista 04 international trade trade (% of gdp) wdi 05 population growth population growth (annual %) wdi 06 economic growth gdp growth (annual percentage) wdi the investigation thoroughly examines the characteristics of the constructs through the application of descriptive statistics. moreover, it investigates the interrelationships among the constructs by employing a correlation matrix. additionally, the study conducts unit root analysis using both the adf & pp tests. the corresponding equation is provided below: 𝑑(𝑌𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑌𝑡−1 + 𝑑(𝑌𝑡(−1)) + ɛ𝑡 (2) moreover, the research explores co-integration using the methodology proposed by westerlund and edgerton (2008b) and the pertinent equations are presented below: lmφ(i) = tφ̂i (r̂i/σ̂i ) (3) lmτ(i) = φ̂i/se(φ̂i) (4) furthermore, the researchers employed the ardl approach to examine the interconnections between the constructs. this model is deemed effective as it offers insights into both short and long-term relationships (nazir et al., 2018). additionally, its utilization is justified as it addresses various concerns, including heteroscedasticity and autocorrelation, within the outcomes (zaidi & saidi, 2018). the equation of estimation is articulated as follows: ∆𝐹𝐼𝑡 = 𝛼0 + ∑𝛿1∆𝐹𝐼𝑡−1 + ∑𝛿2∆𝑅𝐼𝑡−1 + ∑𝛿3∆𝑅𝑃𝑡−1 + ∑𝛿4∆𝐼𝑇𝑡−1 + ∑𝛿5∆𝐸𝐺𝑡−1 + ∑𝛿6∆𝑃𝐺𝑡−1 + 𝜑1𝐹𝐼𝑡−1 + 𝜑2𝑅𝐼𝑡−1 + 𝜑3𝑅𝑃𝑡−1 + 𝜑4𝐼𝑇𝑡−1 + 𝜑5𝐸𝐺𝑡−1 + 𝜑6𝑃𝐺𝑡−1 + ɛ𝑡 (5) furthermore, the study employed the dardl approach to examine the associations among the variables. this method, introduced by jordan and philips (2018) addresses the limitations present in the conventional ardl model. the respective equation is provided below: ∆𝐹𝐼𝑡 = 𝛼0 + ∑𝛿1∆𝐹𝐼𝑡−1 + ∑𝛿2∆𝑅𝐼𝑡 + ∑𝛿3∆𝑅𝐼𝑡−1 + ∑𝛿4∆𝑅𝑃𝑡 + ∑𝛿5∆𝑅𝑃𝑡−1 + ∑𝛿6∆𝐼𝑇𝑡 + ∑𝛿7∆𝐼𝑇𝑡−1 + ∑𝛿8∆𝐸𝐺𝑡 + ∑𝛿9∆𝐸𝐺𝑡−1 + ∑𝛿10∆𝑃𝐺𝑡 + ∑𝛿11∆𝑃𝐺𝑡−1 + ɛ𝑡 (6) 4. research findings the study examines the particulars of the constructs through descriptive statistics. the findings indicate that the mean value of fi is 3.048, ri is 1.380, and rp is 67.020. additionally, the results also reveal the average values of it, eg, and pg as 52.825, 4.621, and 1.293, respectively. these results are presented in table 2. agbioforum, 25(2), 2023 | 133 tanjung & muhafidin — rice import policy: assessing the income of farmers from agriculture in indonesia table 2: descriptive statistics. variable obs mean std. dev. min max fi 32 3.048 1.512 -1.332 6.894 ri 32 1.380 0.745 0.239 2.995 rp 32 67.020 5.258 52.81 71.093 it 32 52.825 12.108 32.972 96.186 eg 32 4.621 3.750 -13.127 8.220 pg 32 1.293 0.287 0.637 1.742 furthermore, the study examines the correlation among constructs using a correlation matrix. the findings indicate a negative association between rice import and farmers' income, whereas rice production, international trade population, and economic growth exhibit a positive association with farmers' income in indonesia. these results are detailed in table 3. table 3: correlation matrix. variables fi ri rp it eg pg fi 1.000 ri -0.042 1.000 rp 0.024 -0.959 1.000 it 0.371 -0.630 0.612 1.000 eg 0.554 -0.108 0.113 -0.493 1.000 pg 0.127 -0.972 0.904 0.582 0.070 1.000 additionally, the study conducts unit root analysis employing the adf & pp tests. the results indicate that fi, ri, eg, and pg are stationary at the level, while rp and it are stationary at the first difference. these findings are presented in table 4. table 4: unit root test. adf pp series level first difference level first difference fi -2.763*** ------2.101*** ----- ri -2.195*** -----2.633*** ----- rp ------4.382*** ------5.372*** it ------4.378*** ------5.009*** eg -2.091*** ------3.281*** ----- pg -2.353*** ------2.171*** ----- additionally, the study explores co-integration using the approach proposed by westerlund and edgerton (2008a). the results demonstrate that the p-values are below 0.05, and the t-values exceed 1.96, indicating the presence of cointegration. these findings are presented in table 5. table 5: co-integration test. model no shift mean shift regime shift test stat p-value test stat p-value test stat p-value lmτ -3.191 0.004 -3.101 0.007 -4.392 0.000 lmφ -3.872 0.000 -3.981 0.000 -4.399 0.000 the study also employed the dardl approach to examine the associations among the variables. the findings indicate that rice import exhibits a negative association with farmers' income, while rice production, international trade, population, and economic growth display a positive association with farmers' income in indonesia. these outcomes are detailed in table 6. table 6: dynamic ardl model. variable coefficient t-statistic prob. ect 2.101*** 5.984 0.000 𝑅𝐼𝑡−1 -1.784** -2.002 0.044 ri -0.647*** -4.372 0.000 𝑅𝑃𝑡−1 1.092** 2.101 0.012 rp 0.645*** 4.373 0.000 𝐼𝑇𝑡−1 0.463*** 4.873 0.000 it 2.101*** 5.404 0.000 𝐸𝐺𝑡−1 1.998*** 3.464 0.000 eg 0.746*** 5.484 0.000 𝑃𝐺𝑡−1 0.091*** 4.382 0.001 pg 0.765*** 4.466 0.000 cons 2.187*** 4.377 0.000 r square = 61.272 stimulation = 5000 5. discussions the findings indicated a positive correlation between rice import and farmers' income. this correlation is substantiated by putra (2019), who posits that an escalation in rice import leads to an augmentation in foreign food supplies, resulting in diminished demand for domestic agricultural food products. this disruption adversely affects agricultural production and disrupts farmers' incomes. these findings align with nwahia (2021), who emphasizes that an increase in rice imports leads to a financial outflow as the price of rice and investments in the domestic agriculture system decrease. consequently, farmers experience reduced incomes. the findings revealed a positive correlation between rice production and farmers' income. this alignment is substantiated by olounlade et al. (2020), suggesting that an increase in rice production results in a higher volume of rice available for sale in the market. the subsequent rise in total agricultural sales contributes to increased earnings for agricultural firms, translating into more substantial usable incomes for farmers. therefore, greater rice production corresponds to elevated incomes for farmers. these outcomes are also consistent with alamgir et al. (2021), asserting that an upswing in rice production leads to a reduction in the import of rice or alternative food products. consequently, the financial resources saved are reinvested in agriculture, leading to an improvement in farmers' income levels. the findings indicated a positive correlation between international trade and farmers' income. these results are also consistent with boysen et al. (2023), asserting that agricultural firms engaged in international trade have the opportunity to acquire necessary resources and sell any surplus without incurring losses. consequently, agricultural profits are safeguarded, and farmers' income is sustained. additionally, these results are supported by van wesenbeeck et al. (2021). the aforementioned study further affirms that the promotion of international trade and the permission to export agricultural products globally enable agricultural farmers to secure substantial amounts of foreign exchange and increase their incomes. the findings revealed a positive correlation between economic growth and farmers' income. these results align with rahman and mishra (2020), emphasizing that a nation experiencing heightened economic growth can allocate resources for agriculture, expanding its revenues in the agricultural sector, ultimately leading to an augmentation of farmers' income. additionally, these results are consistent with humphries and weisdorf (2019), elucidating that during periods of elevated economic growth in a country, farmers possess the capacity to implement technical changes in agricultural practices. agbioforum, 25(2), 2023 | 134 tanjung & muhafidin — rice import policy: assessing the income of farmers from agriculture in indonesia the findings indicate a positive correlation between population growth and farmers' income. these results are substantiated by marie et al. (2020), asserting that heightened population growth in a country contributes to increased economic activity, as the demand for products and services surges. the corresponding expansion in agricultural practices, aimed at meeting the escalating demand, presents an opportunity for augmented earnings, potentially leading to increased income for farmers. additionally, these results align with mulokozi et al. (2020), affirming that elevated population growth propels advancements in the agriculture sector, resulting in higher profits and, consequently, greater incomes for farmers. 6. implication the study also has great significance for the farmers who carry the agriculture sector in developing countries like indonesia. the study guides the policymakers on how to improve the farmer's income, which is a sign of their well-being. the study states that policymakers and economic authorities must try to discourage rice imports and keep a limit so that farmers' income can be preserved. the study also posits that the regulators must take initiatives to increase rice production in order to increase farmers' income. the current study makes a suggestion that the government must form trade policies to encourage international trade and allow the agriculture sector to benefit from international trade. it would help improve farmers' income. there is also a guideline that economic policies should be formed to increase the economic growth rate so that the farmers' incomes can be increased. moreover, the study conveys that population growth should be controlled and managed to expand agriculture and increase farmers' incomes. the results guided the regulators in making regulations related to enhance the farmers’ income by employing restrictions on rice import and also by improving rice production and international trade. 7. conclusion the objective of the study was to discern the impact of rice import, rice production, & international trade on farmers' income, while also exploring the roles of economic growth and population growth in influencing farmers' income. the research relied on secondary data, with information sourced from indonesia statistics. the findings of the study indicate an adverse effect of rice imports on farmers' income. increased reliance on rice imports to meet domestic demand reduces the demand for domestically produced rice, leading to a consequent decline in farmers' income. moreover, the study reveals positive associations between rice production, international trade, economic growth, population growth, and farmers' income. specifically, agricultural firms capable of large-scale rice production can satisfy both national and international demands for food grains, resulting in elevated agricultural revenues and increased income for farmers. furthermore, engagement in international trade allows agricultural firms to access modern agricultural facilities and expand the marketing of agricultural products, thereby potentially raising farmers' incomes. the study also highlights that substantial population growth and heightened economic growth contribute to the expansion of agriculture, creating the potential for increased farmers' income. limitations the study is not without its limitations, which necessitate attention and mitigation by researchers and academics. firstly, this investigation exclusively focuses on a limited set of factors, namely rice import, rice production, and international trade, in analysing their impact on farmers' income. notably absent are considerations of other potentially significant factors such as agricultural administration, technical innovation, and financial inclusion. to enhance the comprehensiveness of the research, academics must address and incorporate these overlooked elements. secondly, the researchers express their concern specifically for farmers' income in indonesia, gathering data solely from this region to validate their findings. for future research endeavours, it is imperative to expand the scope by collecting data from diverse economies, ensuring a more nuanced and globally applicable understanding of the subject matter. references akbari, m., najafi alamdarlo, h., & mosavi, s. h. 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(2018). environmental pollution, health expenditure and economic growth in the sub-saharan africa countries: panel ardl approach. sustainable cities and society, 41 , 833-840. doi: https://doi.org/10.1016/j.scs.2018.04.034 https://doi.org/10.1111/1467-8489.12398 https://doi.org/10.1111/1467-8489.12398 https://doi.org/10.1080/00220388.2019.1640871 https://doi.org/10.30596/jasc.v3i2.4608 https://doi.org/10.1016/j.agsy.2021.103093 https://doi.org/10.1016/j.socscimed.2019.112516 https://doi.org/10.1111/j.1468-0084.2008.00513.x https://doi.org/10.1111/j.1468-0084.2008.00513.x https://doi.org/10.1007/s11356-021-18471-6 https://doi.org/10.1007/s11356-021-18471-6 https://doi.org/10.4314/jasem.v24i5.30 https://doi.org/10.1016/j.scs.2018.04.034 analysis of urbanization, industrialization, irrigation activities, and ground water quality in indonesia agbioforum, 25(3): 1-8. ©2023 agbioforum nurkholis et al. — analysis of urbanisation, industrialization, irrigation activities, and ground water quality in indonesia analysis of urbanisation, industrialization, irrigation activities, and ground water quality in indonesia nurkholis* environmental health study program, faculty of public health, airlangga university, surabaya, indonesia\ orcid id: https://orcid.org/0000-0002-2168-7142 email: cholis.zaini@gmail.com azizah faculty of public health, airlangga university, surabaya, indonesia, orcid id: https://orcid.org/0000-0002-6741-5572 email: azizah@fkm.unair.ac.id mohd talib latif faculty of science and technology, universiti kebangsaan malaysia, selangor, malaysia, orcid id: https://orcid.org/0000-0003-2339-3321 email: talib@ukm.edu.my there is a growing need to address groundwater quality on a global scale, particularly in countries that heavily rely on urbanisation and industrialization. this has led to an increased focus on dedicated research efforts. this study aims to examine the impact of urbanisation, industrialization, and irrigation activities on groundwater quality in rengel district, tuban regency, indonesia. additionally, the research explores the moderating influence of government support in the context of urbanization, industrialization, irrigation activities, and groundwater quality in indonesia. primary data were gathered through surveys conducted with officials from the ministry of national development planning in indonesia, and the reliability of the data and interrelationships among variables were assessed using spss-amos. the results suggest that there is a link between urbanisation and irrigation activities and groundwater quality in indonesia. on the other hand, industrialization seems to have a negative impact on groundwater quality. furthermore, the study highlights the important role of government support in influencing the connections between urbanisation, industrialization, irrigation activities, and groundwater quality in indonesia. keywords: urbanization, industrialization, irrigation activities, government support, groundwater quality. 1. introduction human desires are influenced by different factors, but the basic needs like food, water, and air, remain consistent, along with the importance of their quality. water is an essential element for the human body, playing a crucial role in sustaining life. the availability of water alone is not enough. the quality of water is crucial in determining its impact on the human body, whether it is positive or negative. groundwater is a crucial source of water that plays a vital role in meeting human water needs. approximately half of the world's population depends on groundwater for their drinking water, and it also plays a significant role in meeting 43% of the water demands for agriculture (verma et al., 2020). groundwater reservoirs are crucial for meeting the daily water needs of a significant portion of the world's population, which amounts to 2.5 billion people. according to projections, it is expected that the earth's population, which is currently around 8 billion, will increase to 11 billion by the year 2100 (li et al., 2021). the importance of ensuring a sufficient food supply while also safeguarding climate stability, water resources, and land integrity is crucial for the sustenance of humanity. regarded as a formidable obstacle that humanity must overcome, lies in effectively managing groundwater in a sustainable manner. the quality of groundwater is crucial for ensuring optimal health outcomes for the global population (latchmore et al., 2020; li et al., 2021). indonesia, a country with a population of approximately 275 million people, boasts the largest economy in southeast asia. however, a considerable segment of the population encounters difficulties in obtaining affordable and secure water, as around 192 million individuals lack access. the limited availability of resources greatly contributes to health issues in the country (putranto et al., 2018). fortunately, there is an increasing sense of importance, fueled by national objectives to attain widespread availability of clean water and sanitation by 2024. both the public and private sectors acknowledge the growing importance of funding for home sanitation and water solutions. in indonesia, the water quality index in 2022 was 53.88, consistently falling below ideal levels, indicating compromised water quality. despite the availability of sufficient water supply in most regions, more than 40 million indonesians continue to face challenges in accessing improved water sources (rusydi et al., 2021). indonesia uses a classification system consisting of 421 "groundwater basins" that are defined by hydrogeological boundaries. the country implements this system to effectively manage and regulate its groundwater resources. with a total groundwater potential of 457,400 million cubic metres per year (mcm/year), the safe yield is conservatively estimated at 137,200 mcm/year due to significant groundwater recharge flowing into rivers (fitriani et al., 2020). when it comes to safe yield estimates, there are some regions that stand out. bali, nusa tenggara, java, and sulawesi have lower estimates, ranging from 400 to 7,700 mcm per year. on the other hand, kalimantan, sumatra, and papua have higher estimations, ranging from 26,000 to 59,000 mcm/year (wijayanti et al., 2021). aquifer yields are prominent in the northern plains of java, south and west papua, south kalimantan, east sumatra, and south sulawesi. the aquifers in java play a vital role as sources of potable water (amanah et al., 2019). a range of global factors, which vary depending on specific circumstances in different locations, influence water quality. the groundwater quality of each country is influenced by various factors, including industrialization, urbanisation, chemical usage in industries and agriculture, irrigation activities, and https://orcid.org/0000-0002-2168-7142?lang=en mailto:cholis.zaini@gmail.com mailto:talib@ukm.edu.my agbioforum, 25(3), 2023 | 2 nurkholis et al. — analysis of urbanisation, industrialization, irrigation activities, and ground water quality in indonesia government policies (akhtar et al., 2021; lopes et al., 2021; santore et al., 2021). this study focuses on three key factors: urbanisation, industrialization, and irrigation activities. the study also examines the moderating effect of government support. figure 1 displays the water quality index for indonesia. figure 1: water quality index in indonesia. source: statista. this study aims to fill gaps in the literature by investigating a model that includes urbanisation, industrialization, irrigation activities, and groundwater quality, while also considering the moderating effect of government support, specifically in the context of indonesia. prior studies have examined the correlation between urbanisation and groundwater quality (cerqueira et al., 2020; chelsea nagy et al., 2012), as well as the influence of industrialization on groundwater quality (kamal patel et al., 2014; rahmana et al., 2021). studies have examined the relationship between irrigation activities and groundwater quality (balamurugan et al., 2020; bouimouass et al., 2022). this study expands upon existing perspectives by considering additional factors and examining the moderating effect of government support. this study extends previous research by examining the role of government support in different relationships. specifically, it investigates the impact of government support on the relationship between urbanisation, industrialization, irrigation activities, and groundwater quality. the study's significance lies in three key contributions. firstly, it highlights the importance of clean groundwater for global health. secondly, it adds to the existing literature on groundwater quality, focusing specifically on indonesia. lastly, it enhances the understanding of professionals involved in natural resource management regarding the crucial role of clean water in promoting human well-being. 2. literature review in recent years, there has been a global trend of individuals from rural areas migrating to urban areas in search of modern amenities. the significant increase in urbanisation is associated with higher rates of waste disposal, improper land use, and a lack of concern for the conservation of natural resources. these factors directly affect groundwater quality. cerqueira et al. (2020) investigated the relationship between urbanisation and water quality in a river in northeast brazil, with a specific emphasis on changes in land use. the sampling was conducted twice a year at 16 locations within the basin over a period of 12 months, focusing on the analysis of physical and chemical parameters. significantly higher concentrations of no3, po4, nh4, no2, and nh3 were found in densely urbanised areas. the results indicate that urbanisation has a notable effect on the levels of dissolved inorganic nutrients in the cachoeira river basin. among the different factors, land use type has the most pronounced negative influence on water quality. this study emphasises the need to prioritise urbanisation considerations in order to protect groundwater quality. it specifically highlights the significance of coastal factors in influencing groundwater dynamics. the coastal areas experience significant urbanisation, which has a considerable impact on water quality in these regions. in their study, chelsea nagy et al. (2012) examined the relationship between urbanisation, stream hydrology, and water quality in the coastal area of the gulf coast. the study collected data on hydrological and microbial aspects in watersheds, focusing on surface gradients ranging from 0 to 15%. the results revealed a significant association between urbanisation and water quality, with noticeable deterioration observed in areas with high levels of urbanisation. rivers are important water resources worldwide, leading nations to increase conservation efforts for future generations. increased urbanisation near rivers, aimed at ensuring water availability, has a negative impact on water quality. luo et al. (2020) investigated the relationship between land use, urbanisation, and water quality, finding a significant correlation between urbanisation and river water quality. h1: urbanization has an association with groundwater quality in indonesia. globalisation has led to increased global business interactions by creating a closely interconnected world. the increased global business activity has led to a rise in industrialization, causing the release of chemically agbioforum, 25(3), 2023 | 3 nurkholis et al. — analysis of urbanisation, industrialization, irrigation activities, and ground water quality in indonesia polluted water that contaminates groundwater. kamal patel et al. (2014) examined the connections between industrialization, urbanisation, and water quality in gujrat, india. sampling was conducted at four sites (causeway, chowpati, navadi, and chowk) over a two-week period. the results showed high levels of pollution in the tapi river at chowk, navadi, and chowpati, exceeding the established standards. this is likely due to the rapid industrialization and urbanisation in the area. although pollutants generally disperse and degrade faster in flowing water, many rivers and streams worldwide still suffer from significant contamination. one important factor that affects water quality, especially in developing countries, is the significant release of household waste, which contributes significantly to the negative effects of industrialization on water quality. this highlights the worldwide environmental advocacy position opposing industrialization. rahmana et al. (2021) examined the relationship between industrialization, urbanisation, and water quality in the sumara river, bangladesh. the findings suggest that the overall quality is average, with one-third rated as severe and the remaining two-thirds classified as medium quality. the increased severity is linked to urbanisation and industrialization, requiring control measures to protect water quality and prevent river contamination. groundwater quality in nigeria is negatively affected by industrialization. zacchaeus et al. (2020) conducted a study on 80 samples from different industrial units in nigeria, which were analysed using spss. the findings suggest that industrialization has a negative impact on groundwater quality in nigeria, with the use of chemicals in industries identified as a major contributing factor. h2: industrialization has an association with groundwater quality in indonesia. hunger is a significant global challenge that has led to various initiatives being implemented worldwide. in order to tackle this issue, there is a focused endeavour to optimise irrigation techniques in order to improve agricultural productivity. the widespread adoption of artificial irrigation, which involves the use of hazardous chemicals for early and increased food production, poses risks to both land and groundwater quality. irrigation methods contribute to groundwater impact. the study conducted by bouimouass et al. (2022) examined the correlation between climate change and groundwater quality in the attur region of tamilnadu, india. the investigation specifically analysed 43 bore wells. the study revealed a significant correlation between climate change and groundwater quality in the area. human activities, synthetic fertilisers, agricultural waste, and the weathering of host rocks and minerals were identified as key factors affecting water quality. the study suggests that prompt primary treatment is necessary prior to consumption. mora et al. (2022) conducted a study examining the relationship between wastewater irrigation (wwi) and groundwater quality. the study found a connection between the use of wastewater for irrigation and the quality of groundwater. this resulted in higher levels of salinity, ammonium, and nitrates in groundwater resources as a result of wastewater irrigation. the increased salinity of the soil can affect the leaching of heavy metals into groundwater, leading to contamination by pharmaceuticals, phthalates, and sweeteners. microbiological contamination is most prevalent in shallow or fractured aquifers. h3: irrigation activities have an association with groundwater quality in indonesia. the rapid pace of urbanisation is causing the depletion of natural resources. the significant level of urbanisation presents challenges for governments in terms of resource provision and management. the adverse impact of urbanisation on natural resources, especially water, requires government intervention to ensure effective resource control through proper management of urbanisation. saberi and hamdan (2019) examine the relationship between entrepreneurship and economic growth in gcc economies within the context of modernization. the study uses a 10-year dataset from the global entrepreneurship monitor covering the years 2006 to 2015. the analysis of the data is conducted using the generalised method of moments (gmm) approach. the findings indicate a noteworthy correlation between entrepreneurship and economic growth, which is further influenced by active government support. h4: government support moderates the nexus amid urbanization and groundwater quality in indonesia. every global economy aims to enhance its business activities to promote a strong economic environment. government support for industrialization is often driven by the goal of economic growth, but this comes with significant ecological and natural resource consequences. governments intervene to regulate and control industrial processes when industrialization negatively affects natural resources, specifically groundwater contamination. this intervention aims to safeguard resources like water and air. anwar et al. (2020) examine the correlation between entrepreneurial finance and venture success in pakistan within the framework of moderation. the study uses a sample of 182 new ventures selected through simple random sampling and applies the smart pls approach for data analysis. the results indicate a notable correlation between entrepreneurial finance and the success of ventures, which is influenced by the presence of government support. h5: government support moderates the nexus amid industrialization and groundwater quality in indonesia. agriculture plays a crucial role worldwide, not only in providing food but also in creating jobs and making significant contributions to economic revenues. the increasing need for food places significant strain on the agricultural sector, resulting in the implementation of different irrigation techniques, such as the use of harmful chemicals to achieve early and large-scale crop yields. the use of these chemicals has negative effects on the land, groundwater, and environment. as a response, governments intervene through policy formulation and the agbioforum, 25(2), 2023 | 4 nurkholis et al. — analysis of urbanisation, industrialization, irrigation activities, and ground water quality in indonesia imposition of fines to protect natural resources. xia et al. (2020) examine the correlation between research intensity and diversified performance in current developments. the study employs the spss approach for data analysis, utilising two datasets from 2009 to 2017 and later from 2018 to 2019. the results indicate a strong link between the level of research activity and the extent of performance diversification. additionally, this relationship is influenced by the presence of active government support. h6: government support moderates the nexus amid irrigation activities and groundwater quality in indonesia. 3. research methodology this study examines the impact of urbanisation, industrialization, and irrigation on groundwater quality in indonesia, with a focus on the role of government support as a moderating factor. the collection of primary data involved conducting surveys with officials from indonesia's ministry of national development planning. the measurement constructs consist of four questions for urbanisation (lapointe et al., 2020), six questions for industrialization (lekan et al., 2020), five questions for irrigation activities (leroy, 2023), three questions for government support (zulu-chisanga et al., 2021), and five questions for groundwater quality (mooney et al., 2021). the respondents in this study are officials from the ministry of national development planning in indonesia, selected through purposive sampling. a total of 501 surveys were distributed to the participants' respective institutions through personal visits and official mails. after two months, 291 valid responses were received, resulting in a response rate of 58.08 percent. the reliability of data and relationships among variables were assessed using spss-amos, a widely recognised statistical tool known for its efficacy in analysing primary data and producing optimal results (hair et al., 2014). this tool excels in generating precise outcomes when working with extensive datasets and complex models (hair et al., 2017). the article includes groundwater quality (gwq) as a predictive variable, government support (gs) as a moderating variable, and three predictors: urbanisation (ur), industrialization (in), and irrigation activities (ia)—as illustrated in figure 2. figure 2: theoretical model 4. research findings the investigation examines the relationship between items, known as convergent validity, using multiple criteria. the study examines cr values above 0.70, factor loadings above 0.50, and ave values greater than 0.50. the study also validates the findings using msv and asv values, which should be lower than the ave. the satisfaction of these criteria suggests valid convergent validity, indicating a strong correlation between items. the findings are outlined in table 1. table 1: convergent validity. constructs items loadings cr ave msv asv urbanization ur1 <--ur 0.796 0.885 0.657 0.432 0.313 ur2 <--ur 0.804 ur3 <--ur 0.824 ur4 <--ur 0.819 irrigation activities ia1 <--ia 0.855 0.912 0.722 0.324 0.280 ia2 <--ia 0.937 ia4 <--ia 0.867 ia5 <--ia 0.726 industrialization in1 <--in 0.910 0.839 0.523 0.483 0.323 in2 <--in 0.879 in3 <--in 0.601 in5 <--in 0.509 in6 <--in 0.627 ground water quality gwq1 <--gwq 0.770 gwq2 <--gwq 0.801 0.792 0.693 0.419 0.488 gwq3 <--gwq 0.617 gwq4 <--gwq 0.596 government support gs1 <--gs 0.852 0.786 0.648 0.419 0.349 gs2 <--gs 0.755 the study examines the relationship between variables, known as discriminant validity, using the fornell-larcker criteria. this criterion requires that the values indicating connections with the construct itself should be higher than the values indicating connections with other constructs. the satisfaction of this criterion demonstrates the presence of valid discriminant validity, indicating a strong correlation between variables. table 2 delineates these findings. table 2: discriminant validity. gwq ur in ia gs gwq 0.702 ur 0.657 0.811 in 0.695 0.526 0.723 ia 0.564 0.569 0.527 0.850 gs 0.348 0.469 0.504 0.449 0.805 the study evaluates the model's goodness of fit using multiple fit indices. the tucker-lewis index (tli) and urbanization industrialization ground water quality irrigation activities government support agbioforum, 25(3), 2023 | 5 nurkholis et al. — analysis of urbanisation, industrialization, irrigation activities, and ground water quality in indonesia comparative fit index (cfi) must both have values above 0.90, indicating an acceptable model fit. the study also evaluates the root mean square error of approximation (rmsea), with values below 0.05 indicating a well-fitting model. the criteria collectively indicate good fit of the model. the results are presented in table 3. table 3: model good fitness. selected indices result acceptable level of fit tli 0.965 tli > 0.90 cfi 0.976 cfi > 0.90 rmsea 0.000 rmsea < 0.05 good; 0.05 to 0.10 acceptable figure 3: measurement assessment model. the present study employs path analysis to reveal the relationships between variables. the findings demonstrate a positive relationship between urbanisation and irrigation activities, as well as groundwater quality in indonesia. conversely, industrialization shows a negative correlation with groundwater quality, supporting hypotheses h1, h2, and h3. the study's results indicate that government support has a notable impact on the connections between urbanisation, industrialization, irrigation activities, and groundwater quality in indonesia. this supports the acceptance of hypotheses h4, h5, and h6. the results are presented in table 4. table 4: path analysis. relationships beta s.e. c.r. p ground water quality <--urbanization 0.201 0.032 6.296 0.000 ground water quality <--ur x gs 0.007 0.002 3.500 0.002 ground water quality <--industrialization 0.043 0.019 -2.263 0.021 ground water quality <-- irrigation activities 0.307 0.032 9.498 0.000 ground water quality <-- government support 0.120 0.030 3.996 0.000 ground water quality <--ia x gs 0.061 0.005 11.241 0.000 ground water quality <--in x gs 0.065 0.005 12.545 0.000 figure 4: structural assessment model. 5. discussions the research suggests a positive link between urbanisation and groundwater quality, as supported by khan et al. (2020). according to these authors, as urbanisation expands, there is a rise in environmental awareness among the population, leading to a greater focus on activities that could affect groundwater quality. this supports the findings of ul haq et al. (2021), who suggest that the increase in urbanisation results in the adoption of ecofriendly initiatives, which help protect the quality of groundwater. conversely, the findings indicate a correlation between industrialization and a decline in groundwater quality. this supports the viewpoint put forth by karmakar et al. (2023), who argue that an increase in industrial sites results in more chemical processes and manufacturing operations, leading to higher pollution emissions and a decline in groundwater quality. sarker et al. (2021) highlights the impact of increased industrial practices on groundwater quality. they emphasise that the release of polluting waste emissions from these practices contributes to its deterioration. agbioforum, 25(3), 2023 | 6 nurkholis et al. — analysis of urbanisation, industrialization, irrigation activities, and ground water quality in indonesia the results suggest a positive relationship between irrigation activities and groundwater quality. adimalla et al. (2020) highlight the importance of utilising high-quality water for crops in irrigation systems to ensure the preservation of good groundwater quality. batarseh et al. (2021) provides additional evidence for the assertion that increased irrigation practices, beyond dependence on rainwater alone, promote the preservation of groundwater quality. in addition, the study finds that government support plays a significant role in moderating the relationship between urbanisation and groundwater quality. according to wafa et al. (2020), government support promotes urbanisation and reduces environmental pollution, which helps protect groundwater quality. ijioma (2021) argues that government support promotes. urbanisation contributes to the sustainability of groundwater quality. the study demonstrates that government support significantly influences the connection between industrialization and groundwater quality. zacchaeus et al. (2020) argue that a government that supports economic prosperity and health protection can facilitate responsible industrialization while minimising environmental impacts, thereby maintaining groundwater quality. the findings of hasan et al. (2022) provide additional support for the argument that government assistance mitigates the negative impacts of industrialization on groundwater quality. the study highlights the important role of government support in moderating the relationship between irrigation activities and groundwater quality. the provision of government support allows farmers to afford efficient irrigation systems, which helps preserve groundwater quality (gugulothu et al., 2022). singh et al. (2020) assert that government support is instrumental in improving irrigation systems and preserving groundwater quality. 6. implications the current study has important empirical implications, especially in emerging economies where environmental pollution is a pressing issue. this article provides relevant recommendations for regulatory bodies involved in environmental management, highlighting the importance of implementing a well-organized urbanisation approach to improve groundwater quality. the study supports the implementation of environmentally friendly measures during industrialization expansion to reduce pollution and improve groundwater quality. the research highlights the significance of implementing an efficient irrigation system to preserve groundwater quality. the text emphasises the importance of government support and suggests that public endorsement of such support could promote urbanisation, leading to improved groundwater quality. the study suggests that accessible government support should be provided to address the environmental aspects related to industrialization and maintain the quality of groundwater. the research highlights the importance of government support in addressing environmental challenges associated with industrialization and maintaining groundwater quality through supported irrigation systems. 7. conclusion this study aimed to investigate the effects of urbanisation, industrialization, and irrigation on groundwater quality, considering the moderating influence of government support. quantitative data were collected from government officials through the use of questionnaires. the results showed a positive correlation between urbanisation, irrigation activities, and groundwater quality. the process of urban development resulting from rural-to-urban migration has a positive impact on groundwater quality as it helps to mitigate environmental pollution. on the other hand, the increase in industrialization has a detrimental effect on groundwater quality as a result of excessive resource consumption and pollution emissions. the installation of an irrigation system improves groundwater quality by ensuring a consistent water supply. government support has played a crucial role in facilitating urbanisation, improving industrial administration, and enhancing groundwater quality through improved irrigation systems. 8. limitations the study has a few limitations, but these can be overcome with more academic focus. firstly, the study focuses on examining the effects of urbanisation, industrialization, and irrigation activities on groundwater quality. unfortunately, the study fails to address important factors like green financial inclusion, social and environmental responsibilities, and energy consumption patterns. as a result, readers may find the guidance provided to be limited in scope. therefore, it is important for future research efforts to consider these significant factors when analysing groundwater quality. furthermore, the study's heavy reliance on a questionnaire survey and the sole use of respondents' opinions for hypothesis testing highlight a limitation. a more thorough approach, supported by welldocumented and validated information, should be utilised in future studies to strengthen the reliability of the findings. references adimalla, n., dhakate, r., kasarla, a., & taloor, a. k. 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https://doi.org/10.25105/urbanenvirotech.v5i1.10746 https://doi.org/10.1007/s11192-020-03635-x https://doi.org/10.1007/s11192-020-03635-x https://doi.org/10.1016/j.heliyon.2020.e04353 https://doi.org/10.1016/j.heliyon.2020.e04353 https://doi.org/10.1108/jeee-07-2019-0105 agbioforum, 26(1): 137-146. © 2024 agbioforum roengthanapiboon et al. — sustainable development: development of wisdom for dyeing natural fibers used to create… sustainable development: development of wisdom for dyeing natural fibers used to create community textile products natthatida roengthanapiboon department of architectural education and design, king mongkut’s institute of technology ladkrabang, bangkok, thailand. orcid id: https://orcid.org/0009-0007-3954-5322 email: 62603121@kmitl.ac.th apisak sindhuphak department of architectural education and design, king mongkut’s institute of technology ladkrabang, bangkok, thailand. orcid id: https://orcid.org/0009-0007-4623-8275 email: apisak.si@kmitl.ac.th sirisyos kijmongkolvanich department of architectural education and design, king mongkut’s institute of technology ladkrabang, bangkok, thailand. orcid id: https://orcid.org/0009-0003-4817-5248 email: sirisyos09@gmail.com songwut egwutvongsa* department of architectural education and design, king mongkut’s institute of technology ladkrabang, bangkok, thailand. orcid id: https://orcid.org/0000-0002-8443-3975 email: momojojo108@gmail.com the objectives of this research were: (1) to examine the factors influencing the natural dyeing process using teak leaves, and (2) to evaluate consumer satisfaction with textiles dyed using this technique. a structured questionnaire was employed as the research instrument, focusing on the characteristics of environmentally friendly textile products. utilizing exploratory factor analysis (efa), the study identified 28 variables affecting the natural dyeing process from teak leaves, and confirmatory factor analysis (cfa) established separate discriminant validity data. four key factors were identified: (1) policy and natural materials, (2) knowledge of local materials, (3) wisdom/skills, and (4) textile products. all factors met the standard criteria for fit indices, with values of 𝜒2 = 11.164, df = 15, relative 𝜒2 = .744, p = .741, gfi = .991, agfi = .956, nfi = .994, tli = 1.009, cfi = 1.000, rmsea = .000, and rmr = .020, allowing for the evaluation of new textile product prototypes through multiple regression analysis. the study found that these four independent variables collectively explained 86.0% of consumer satisfaction, as indicated by the standardized regression equation = .434(x1) + .325(x2) + .292(x3). the findings highlight the potential of using local materials to enhance environmental sustainability, generate community income, and preserve traditional wisdom in thailand. keywords: sustainability, natural materials, dyeing, creativity, products. introduction global fluctuations in environmental and economic conditions have led to widespread negative impacts on populations worldwide (harper, 2021). these fluctuations are primarily driven by rapid human development, which has resulted in the overexploitation of natural resources and significant environmental degradation. additionally, the release of substantial amounts of pollutants has contributed to increased environmental toxicity, leading to unprecedented variability in global temperatures. thailand, in particular, is experiencing severe effects from climate variability, including frequent natural disasters and environmental issues such as droughts, pest infestations, floods, soil degradation, and increased dust particles (pm2.5). these challenges have adversely affected the livelihoods of the thai population and have also disrupted the economy, leading to increased product prices. the current environmental challenges necessitate a strategic response from the thai government to comprehensively address these issues. this strategy should include initiatives to raise environmental awareness among provincial populations and to promote changes in the production methods of small-scale industries within local communities. emphasizing sustainable development is crucial, particularly through the integration of traditional local knowledge to foster environmentally friendly practices. this approach should be aligned with community needs, focusing on enhancing production processes and meeting market and consumer demands. in response, the thai government has introduced a plan to advance national development through the biocircular-green (bcg) economic model, which aims to achieve sustainable development in three key areas: (1) social security, (2) environmental stability, and (3) economic stability. this initiative is part of the broader thailand 4.0 policy, which seeks to ensure comprehensive sustainability across all sectors of the country. the thai government has supported local communities nationwide by promoting development through three primary economic models: (1) bioeconomy, (2) circular economy, and (3) green economy. these models serve as critical mechanisms for driving rapid economic growth and facilitating the equitable distribution of income to remote communities across thailand. the overarching goal of this initiative is to enhance the country's competitive potential, transitioning thailand from a middle-income nation to a highincome country with increased opportunities for its citizens. the teak tree is regarded as an endemic species widely cultivated across thailand, with numerous trees planted in agricultural areas within local communities. this research aims to develop a method for utilising discarded teak leaves and branch fragments for the dyeing of natural fibres. it is essential to encourage local communities to recognise the value of teak trees by using fallen leaves to dye fibres before weaving them into fabrics. this approach not only fosters community learning and highlights local potential but also generates income for communities involved in processing teak leaves into vibrant woven fabrics. the colours derived from teak leaves contribute to a unique identity for these textiles, enhancing their appeal through distinctive hues and patterns. such practices present an opportunity to promote sustainability within provincial communities across thailand. consequently, this research seeks to enhance the use of teak leaves in dyeing community textiles by advancing the principles of the circular economy through natural dyeing processes. this approach is crucial in the creation of environmentally friendly and socially responsible textile products. https://orcid.org/0009-0007-3954-5322 mailto:62603121@kmitl.ac.th https://orcid.org/0009-0007-4623-8275 mailto:apisak.si@kmitl.ac.th https://orcid.org/0009-0003-4817-5248 mailto:sirisyos09@gmail.com https://orcid.org/0000-0002-8443-3975 mailto:momojojo108@gmail.com agbioforum, 26(1), 2024 | 138 roengthanapiboon et al. — sustainable development: development of wisdom for dyeing natural fibers used to create… the utilisation of local natural materials in community textile production necessitates active community participation (pradhan & khandual, 2020). this approach highlights the potential of leveraging local resources to foster economic development and reduce poverty within communities (muzekenyi, nyika, & hoque, 2023). additionally, it encourages communities to engage in ongoing sustainable development practices, including the promotion of sustainable supply chains and the creation of employment opportunities that support local livelihoods. in this context, the small-scale textile industry present in communities across thailand embodies the concept of economic resilience, contributing to positive structural changes in society and promoting sustainable stability for the future environment and way of life in thailand (levickaitė, 2011). literature review conceptual framework conceptual framework for process development: dyeing fibres before weaving them into long lengths is a crucial step in the production of woven products, imparting a distinctive appearance that reflects the community's cultural identity. community members have traditionally sourced natural materials from their local environment as raw materials for textile production, guided by principles of sustainability (saxena & raja, 2014; zakariya, mandy, & peeters, 2023). consequently, research on natural dyes has focused on developing dyeing techniques that minimise environmental impact (arora, agarwal, & gupta, 2017; tavera, 2023; zhang et al., 2022). the use of dyes derived from local natural materials not only enhances the aesthetic appeal of textiles but also supports environmental sustainability. the application of natural dyes found in many communities offers several notable benefits, including: (1) biodegradability, (2) non-toxicity to humans, (3) reduced risk of allergic reactions, (4) environmental friendliness, (5) job creation within the community, (6) promotion of local material use, and (7) the potential for recycling natural dyes. application of conceptual framework: the dyes used for colouring textile fibres are derived from various plant components, such as leaves, roots, bark, and stems. these plant-based dyes are environmentally friendly and have minimal negative impact on the environment. substituting natural dyes for synthetic petroleum-based dyes represents a viable strategy for reducing environmental harm (ahsan et al., 2020; muthuswamy, 2023). this approach supports the development of community textile products by focusing on three key factors: (1) reducing the release of harmful chemicals into the environment, (2) encouraging and supporting closed-loop production systems, and (3) promoting a circular economy that benefits the community (bishal et al., 2023; zhu & chandran, 2023). creative concept framework: this approach involves producing textiles by dyeing fibres with natural teak leaves, which creates a distinctive identity in terms of colour, setting these products apart from others in the market. this uniqueness enhances consumer interest in textile products and influences changes in consumer behaviour and attitudes towards purchasing decisions. consumers increasingly prioritise products made using environmentally friendly and sustainable processes, making this a key factor in their purchase decisions (niinimäki et al., 2020; subandowo & winardi, 2022). textiles made from natural materials hold a competitive advantage over conventional products that lack environmental conservation attributes. consumers are now more inclined to make quicker purchasing decisions by assessing the environmental and social impacts of products (khalid sandhu & makki, 2023; luchs et al., 2010). therefore, the design of textile products dyed with teak leaf colours aligns well with current market trends and evolving consumer demands. conceptual framework for integration: the framework integrates traditional wisdom with technology tailored to community conditions, promoting sustainable development through the use of teak leaves in the natural dyeing process. this approach fosters an environmentally, socially, and economically conscious method of textile production, engaging community members in utilizing local resources to enhance economic potential. it generates income, supports the circular economy (saha, dey, & papagiannaki, 2022; zhao, chen, & li, 2024), and fosters the creative economy (kopiievska et al., 2023) for sustainable development. this concept is demonstrated in a case study of the ko sub-district, li district, lamphun province, as depicted in figure 1(a-g). figure 1: a: young teak leaves; b: breaking them into small pieces with boiling water to extract color; c: putting silk threads through a dyeing process and drying them in the sun; d: preparing silk threads; e: process of winding the warp to be formed in a striped pattern of warped threads; f: a wooden weaving shuttle containing a spool of weft thread to be used to weave back and forth while lifting the warp threads up and down; g: the weaving process. agbioforum, 26(1), 2024 | 139 roengthanapiboon et al. — sustainable development: development of wisdom for dyeing natural fibers used to create… methodology this study utilised an applied research methodology, comprising the following stages: 1) data collection, 2) design, 3) experimentation, 4) analysis, and 5) identification of factors for a new design. the research involved investigating the factors associated with the application of the natural dyeing process using teak leaves and evaluating the satisfaction levels with textiles dyed using this technique. objectives 1. to investigate the factors involved in the application of the natural dyeing process using teak leaves. 2. to evaluate the level of satisfaction with textile products created from yarn dyed with teak leaves. scope of research in the study of factors for the application of the natural dyeing process from teak leaves a) the study population included individuals involved in weaving local textiles in li district, lamphun province, as well as attendees of the "silk road identity of thai lanna fabrics" exhibition. this exhibition was held from 23 to 25 june 2023 at the hariphunchai handwoven textile institute, lamphun province, and attracted a total of 480 participants. b) the sample group consisted of a community engaged in weaving local textiles and 214 consumers who attended the trade show. sampling was conducted using krejcie and morgan's random sample table with a tolerance level of 0.05 and simple random sampling (krejcie & morgan, 1970). c) the research employed a structured questionnaire designed to gather information on the use of teak leaf dyes in creating community textile products. the questionnaire utilized a 5-point likert scale and demonstrated reliability with a high alpha coefficient (cronbach's alpha = 0.962) (peterson, 1994). d) data analysis was performed using efa and cfa to assess the research findings. scope of research on satisfaction assessment of consumers who purchase textile products made of yarn from the natural dyeing of teak leaves a) the population for the study consisted of consumers who attended the winter fair in nakhon lampang in 2024, amounting to a total of 1,000 individuals (national news bureau of thailand, 2023). b) the sample group comprised attendees of the lampang winter and good products fair for local community products in 2024. a sample of 316 individuals was selected using taro yamane's random sampling table with a tolerance level of 0.05 and simple random sampling (yamane, 1973). c) the research employed a structured questionnaire designed to assess satisfaction with textile products. the questionnaire included observable variables measured on a 5-point likert scale. the reliability of the instrument was confirmed with a high alpha coefficient (cronbach's alpha = 0.902), indicating strong reliability for data collection (peterson, 1994). d) data analysis involved descriptive statistics, including mean and standard deviation, to examine the relationships between variables, complemented by multiple regression analysis (mra). the research was conducted in accordance with ethical standards and received certification from the institutional review board (irb) at king mongkut's institute of technology ladkrabang, as documented in approval number ec-kmitl 67 029. results results of the study concerning factors in the application of the natural dyeing process from teak leaves the assessment of natural dyes derived from teak leaves involves understanding the factors applied in the creation of new textile products, which can be divided into two stages: step 1: exploratory factor analysis (efa) this stage involves grouping collected data into variables using efa. the data analyzed includes consumer preferences and variables influencing consumer selection and satisfaction with woven fabrics dyed using natural dyes. the objective is to explore variables and identify common factors that elucidate the relationships among all observable variables (hair et al., 2019). the specific steps undertaken are as follows: 1. identification of 28 variables for study. 2. establishment of a sample size of 214 individuals, which is deemed sufficient for reliable analysis. 3. assessment of the commonality values of variables to explain commonalities based on specified criteria (> 0.71), with commonality values ranging from 0.842 to 0.713. the kaiser-meyer-olkin (kmo) measure and bartlett's test results exceed 0.71, as detailed in table 1. table 1: kmo and bartlett's test of the sample group with the desire to use textile products utilizing techniques for natural dye made from teak leaves. kmo and bartlett's test kaiser-meyer-olkin measure of sampling adequacy .800 bartlett's test of sphericity approx. chi-square 7141.761 df 378 sig. .000 the kmo measure and bartlett's test yielded a kmo value of 0.800, which is greater than the recommended threshold of 0.50, indicating that the data are suitable for exploratory factor analysis. the bartlett’s test of sphericity yielded a chi-square value of 7141.761 with a significance level of 0.000, further supporting the appropriateness of the data for this analysis. the factor analysis extracted four key factors from the 28 variables, accounting for the total variance as follows: factor 1 explained 50.528% of the variance, factor 2 accounted for 8.652%, factor 3 contributed 7.387%, and factor 4 represented 4.887%. the scree plot analysis, which agbioforum, 26(1), 2024 | 140 roengthanapiboon et al. — sustainable development: development of wisdom for dyeing natural fibers used to create… revealed a cumulative variance of 71.455%, illustrated that the eigenvalues of the 28 variables aligned perfectly with the graphical representation, showing a clear slope from factor 1 to factor 4, as presented in table 2. table 2: axis rotation weight value of factors with the verimax method. policy and natural materials factor 1 f/1 f/2 f/3 f/4 a17 the development of textile products can increase economic value. .797 a19 it can promote the budget and increase the competitiveness of the community. .785 a18 the process creates environmentally friendly textile products. .755 a20 it can promote and support the creation of community stores that sell textile products. .744 local materials knowledge factor 2 f/1 f/2 f/3 f/4 a14 it can increase knowledge and skills in using teak leaves to produce natural dyes. .809 a11 the dye produced from teak leaves is unique for meeting market demand. .794 a16 the dye production and weaving processes are suitable for the community's potential. .784 wisdom / skills factor 3 f/1 f/2 f/3 f/4 a12 the process of natural dyeing from teak leaves is appropriate for the community's potential. .842 a13 products using dyes from teak leaves are appropriate for existing community wisdom. .741 a8 the prices of textile products must be at a level appropriate for consumer groups. .731 textile products factor 4 f/1 f/2 f/3 f/4 a3 the distinctive colors are appropriate for the patterns of woven fabric. .746 a6 the color of teak leaves used for dyes can bind the fibers. .740 * set element weight values at a level of 0.71 and above the analysis identified four distinct factors from the 28 variables studied. factor 1 (policy and natural materials) comprises variables a17, a19, a18, and a20. factor 2 (local materials knowledge) includes variables a14, a11, and a16. factor 3 (wisdom/skills) is represented by variables a12, a13, and a8. factor 4 (textile products) consists of variables a3, a6, and additional variables. out of the original 28 variables, the analysis prioritized the 12 with the highest correlations, consolidating them into these four factors. these factors are pivotal for evaluating the potential success in addressing consumer needs for textile products dyed with natural teak leaf dyes, as demonstrated in figure 2. figure 2: analysis of anti-image matrices (measures of sampling adequacy: msa). step 2: confirmatory factor analysis (cfa) a) first-order confirmatory factor analysis: prior to conducting the cfa, data inspection revealed a kmo measure of 0.829, and bartlett's test of sphericity yielded a value of 2769.750 with a significance level of 0.000 (hair et al., 2019). these results indicate that the data are sufficiently related for analysis. additionally, the reliability of the data collection instrument was high, with a cronbach's alpha coefficient of 0.899. b) second-order confirmatory factor analysis: the fit indices for the second-order cfa were as follows: chisquare = 11.164; degrees of freedom (df) = 15; relative chi-square = 0.744; p-value = 0.741; rmsea = 0.000; rmr = 0.020; gfi = 0.991; agfi = 0.956; nfi = 0.994; tli = 1.009; cfi = 1.000. these indices meet the specified criteria: relative chi-square is less than 2, rmsea and rmr are below 0.05, and gfi, nfi, agfi, tli, and cfi exceed 0.95 (schumacker & lomax, 2015; suksawang, 2020). consequently, it can be concluded that the factors influencing consumer satisfaction with textile products dyed with teak leaves are effectively represented by four factors, ranked in order of their impact: 1) policy and natural materials, 2) local materials knowledge, 3) wisdom/skills, and 4) textile products. these factors collectively influence the success of introducing and fabricating textile products from natural teak leaf dyes to meet consumer needs, as detailed in table 3. [pol]=policy and natural materials [loc]=local materials knowledge [wis]=wisdom / skills [tex]=textile products the ave and cr values for the four identified factors are summarised as follows: 1) policy and natural materials (ave = 0.753, cr = 0.924), 2) local materials knowledge (ave = 0.725, cr = 0.887), 3) wisdom and skills (ave = 0.761, cr = 0.905), and 4) textile products (ave = 0.718, cr = 0.799). these values satisfy the established criteria for validity (hair et al., 2019), where agbioforum, 26(1), 2024 | 141 roengthanapiboon et al. — sustainable development: development of wisdom for dyeing natural fibers used to create… cr exceeds 0.7, ave is greater than 0.5, and both the msv and asv are lower than the ave. consequently, the data demonstrate discriminant validity, indicating that the four factors, derived from twelve indicator variables, are distinct and separable. these findings are presented in table 3 and illustrated in figure 3. table 3: second order confirmatory factor analysis. latent variable, observable variable policy and natural materials local materials knowledge wisdom / skills textile products r2 𝑏 𝛽 s.e. 𝑏 𝛽 s.e. 𝑏 𝛽 s.e. 𝑏 𝛽 s.e. pola17 1.000 .951 .905 pola19 .886 .887 .041** .787 pola18 .777 .881 .036** .777 pola20 .748 .753 .050** .567 loca14 1.000 .922 .850 loca11 .783 .815 .052** .664 loca16 .765 .818 .050** .669 wisoa12 .875 .756 .121** .571 wisa13 1.000 .906 .822 wisa8 .986 .973 .086** .946 texa3 .747 .728 .075** .530 texa6 1.000 .956 .915 latent variable new design r2 ave cr 𝑏 𝛽 s.e. pol 1.000 .847 .717 .753 .924 loc .783 .669 .097** .447 .725 .887 wis .560 .548 .081** .301 .716 .905 tex .737 .789 .083** .623 .718 .833 chi-square = 11.164 ; df = 15, relative chi-square = .744, p-value = 0.741, gfi = 0.991, agfi =0.956, nfi = 0.994, til = 1.009, cfi = 1.000, rmsea = 0.000, rmr = 0.020 [* p < .05; ** p < .01] figure 3: second order standardized estimates and final structural equation model. in conclusion, consumer satisfaction with textile products dyed using teak leaves is influenced by four key factors, ranked from highest to lowest impact as follows: 1. policy and natural materials: this factor includes variables pola17, pola19, pola18, and pola20. 2. textile products: this factor comprises variables texa6 and texa3. 3. local materials knowledge: this factor consists of variables loca14, loca16, and loca15. 4. wisdom and skills: this factor includes variables wisa8, wisa13, and wisa12. these factors collectively determine the level of consumer satisfaction with textiles utilizing natural dyes from teak leaves. results of the satisfaction assessment of textile products produced with yarn from natural dyeing with teak leaves a) new textile product design process: the design process for new textile products incorporates all four factors derived from the 12 indicator variables. this approach is used in the creation of woven fabrics naturally dyed with teak leaves, specifically by female weavers in ko sub-district, li district, lamphun province, as detailed in table 4. b) brainstorming for designing textile products: ideas drawn from the arts and culture of lamphun province have been integrated into the design of new textile products, focusing on utilising locally abundant materials (tresnawati, saleh, & wardani, 2020). the colours achieved through natural dyeing with teak leaves offer a distinctive aesthetic compared to dyes derived from other sources (rather et al., 2023). additionally, these textile products positively impact the health and environmental well-being of individuals in community groups, employing a sustainable development approach that efficiently minimises environmental impact, as outlined in table 4. c) evaluation of satisfaction in new textile products: agbioforum, 26(1), 2024 | 142 roengthanapiboon et al. — sustainable development: development of wisdom for dyeing natural fibers used to create… consumer satisfaction with participation can be evaluated through the exhibition titled "silk road identity of thai lanna fabrics," held at the hariphunchai handwoven textile institute in lamphun province from june 23 to 25, 2023, as illustrated in figure 4. table 4: textile production by using natural dyes from teak leaves. the process of turning teak leaves into fabric dye. the process of dyeing colors in textile fibers and drying them. the developed textile production prototypes. the process of weaving fibers into cloth. figure 4: prototype of developed textile product. table 5: consumer satisfaction with textile products from natural dyeing with teak leaves (n=316). factor mean s.d. cronbach's alpha satisfaction level 1 policy and natural materials 4.02 0.93 .926 very satisfied a17 it can increase economic value from the development of textile products. a19 it can promote the budget and increase the competitiveness of the community. 4.16 0.86 .928 very satisfied a18 it enables a process for creating environmentally friendly textile products. 4.06 0.81 .926 very satisfied a20 it can promote and support the creation of community stores that sell textile products. 4.06 0.90 .928 very satisfied 2 totals local materials knowledge 4.07 0.79 .927 very satisfied a14 it can increase knowledge and skills in using teak leaves to produce natural dyes. 3.32 0.94 .929 moderately satisfied a11 the dye produced from teak leaves is unique and meets market demand. 3.60 0.88 .928 very satisfied a16 the dye production and weaving processes are suitable for the community's potential. 3.66 0.83 .929 very satisfied 3 totals wisdom / skills 3.53 0.79 .929 very satisfied a12 the process of natural dyeing from teak leaves is appropriate for the community's potential. 3.59 0.88 .931 very satisfied a13 products using dyes made from teak leaves are appropriate for existing community wisdom. 3.78 0.84 .933 very satisfied a8 the price level of textile products is appropriate for all consumer groups. 3.59 0.80 .928 very satisfied 4 totals textile products 3.66 0.73 .931 very satisfied a3 the distinctive colors are appropriate for the patterns of the woven fabric. 4.15 0.74 .930 very satisfied a6 the color of the dyes made from teak leaves can bind to the fibers well. 4.23 0.75 .928 very satisfied totals sum total 4.19 0.68 .929 very satisfied 3.85 0.82 .929 very satisfied the evaluation of consumer satisfaction with textile products dyed with natural teak leaf dye yielded the following results: 1) textile products received a high level of satisfaction, with a mean score of 4.19 and a standard deviation of 0.68; 2) policy and natural materials were also rated highly, with a mean of 4.07 and a standard deviation of 0.79; 3) wisdom/skills achieved a high satisfaction level, with a mean of 3.66 and a standard deviation of 0.73; 4) local materials knowledge received a high satisfaction rating, with a mean of 3.53 and a standard deviation of 0.79. overall, the consumer group rated all four factors with a high level of satisfaction, averaging a mean score of 3.85 and a standard deviation of 0.82. the analysis, based on 316 sets of data, included normality testing for the four factors: 1) policy and natural materials, 2) local materials knowledge, 3) agbioforum, 26(1), 2024 | 143 roengthanapiboon et al. — sustainable development: development of wisdom for dyeing natural fibers used to create… wisdom/skills, and 4) textile products. all four factors met the criteria for normality (hair et al., 2019), as normality was not considered significant when the sample size is 200 or more, as shown in table 5. figure 5: relationship between independent variables (x) and dependent bariables (y). in summary, 1) the graph shows a normal distribution with no outliers and data conforming to the normal distribution line; 2) a linear relationship exists between independent and dependent variables; 3) scatterplots indicate equal variance; and 4) data is consistently arranged, confirming suitability for analysis. four independent variables— creative thinking, skill development, knowledge creation, and consumer satisfaction with natural dye textiles—are identified. the model predicts 86.0% of consumer satisfaction (r² = 0.860; r = 0.927; adjusted r² = 0.860), exceeding the minimum 60% criterion, as illustrated in figure 5 and table 7. subsequent analysis revealed statistical significance (p = 0.000), with the multiple regression equation effectively capturing the phenomena under investigation, as detailed in table 6. table 6: anova. model sum of squares df mean square f p-value 1 regression residual total 94.328 15.373 109.702 4 311 315 23.582 .049 477.067 .000 table 7: stepwise multiple regression analysis. model unstandardized coefficients standardized coefficients t p-value zero-order collinearity statistics b std. error beta tolerance vif 1 (constant) .257 .089 2.899 .004 policy and natural materials .324 .020 .434 16.271 .000 .799 .632 1.582 local materials knowledge .242 .019 .325 12.442 .000 .718 .662 1.512 wisdom / skills .237 .020 .292 11.891 .000 .665 .746 1.341 textile products .127 .023 .146 5.452 .000 .642 .629 1.589 r=0.927, r2=0.860, adj r2=0.858, see=0.22233, durbin-watson=2.155 *p < .05 the analysis presented in table 7 identifies key factors influencing consumer satisfaction with textile products dyed using natural dyes from teak leaves. four variables significantly impact consumer satisfaction: 1) policy and natural materials (β = 0.324, t = 16.271, p = 0.000), 2) local materials knowledge (β = 0.242, t = 12.442, p = 0.000), 3) wisdom/skills (β = 0.237, t = 11.891, p = 0.000), and 4) textile products (β = 0.127, t = 5.452, p = 0.000). collectively, these factors account for 86.0% of the variance in consumer satisfaction. all variables exhibit a statistically significant impact at the 0.05 level. the regression equation reflecting these relationships is as follows: regression equation in raw score form = 257 +.324(x1) + .242(x2) + .237(x3) + .127(x4) regression equation in standard score form = .434(x1) + .325(x2) + .292(x3) + .146(x4) discussion the investigation into factors influencing the design of textile products using natural dyes from teak leaves employed efa to identify 28 variables, from which 12 with the highest correlations were distilled into four factors: 1) policy and natural materials, 2) local materials knowledge, 3) wisdom/skills, and 4) textile products. subsequently, cfa was conducted, demonstrating discriminant validity and high predictive value across these factors. community groups can leverage these four factors to design textile products, enhancing the likelihood of future success. these factors reflect consumer preferences and the demand for new textile products dyed with teak leaves (aktan & anjam, 2022). consequently, this approach supports community sustainability in three key areas: environmental, economic, and lifestyle sustainability (jourabchi amirkhizi, pourtalebi, & anzabi, 2023). community development can be enhanced by leveraging local resources to create competitive advantages in the market (brondízio et al., 2021). the application of natural dyes from teak leaves for fabric dyeing offers a distinctive community identity. this approach provides women’s weaving groups in northern thailand with the opportunity to expand their market reach. additionally, government support can facilitate the advancement of environmentally sustainable dyeing techniques and promote the refinement of weaving skills to produce high-quality, intricate patterns. such initiatives contribute to the sustainable development of the community across multiple dimensions and support the preservation of traditional weaving expertise in northern thailand (junsongduang et al., 2017). the satisfaction assessment of the new textile product design reveals three key areas of community potential: 1) the utilization of natural resources, 2) the application of local wisdom, and 3) the enhancement of skills. the evaluation of consumer satisfaction with the prototype product is linked to four factors: 1) policy and natural agbioforum, 26(1), 2024 | 144 roengthanapiboon et al. — sustainable development: development of wisdom for dyeing natural fibers used to create… materials, 2) local materials knowledge, 3) wisdom/skills, and 4) textile products and related items. the structural equation model analysis of 12 variables meets the established criteria, demonstrating its efficacy in designing textile products using natural dyes from teak leaves. this approach supports community and consumer sustainability in both economic and environmental dimensions (ebrahim et al., 2022). additionally, the prototype textile products are characterized by a chemical-free and environmentally friendly production process. the effective application of the four identified factors in creating these prototypes has resulted in high consumer satisfaction, affirming the potential for sustainable development among female weaver groups in li district, lamphun province. this allows them to produce and design textile products that align with consumer preferences across the four factors: 1) policy and natural materials: this factor emphasizes the promotion of locally abundant materials for producing natural dyes. in this instance, the community has chosen teak leaves, which are processed into a distinctive fabric dye that embodies the community's identity. such products not only generate income and contribute to economic stability but also take into account environmental considerations. this approach raises awareness about the adverse effects on both the community and its surrounding environment. by understanding these environmental impacts and their positive implications, the community's awareness of environmental importance is heightened (bechtold et al., 2003). 2) local materials knowledge: community members are learning to identify and utilize local natural materials to develop products that align with the community’s resources and potential. in phrae province, for example, the abundance of teak trees and the accumulation of fallen teak leaves during the dry season present an opportunity for innovation. these leaves, which often accumulate on the forest floor and contribute to severe forest fires and pm 2.5 dust, can be repurposed. by using these dried leaves, the community can help mitigate the pm 2.5 dust issue, particularly in northern thailand (ado et al., 2014). furthermore, increasing environmental awareness among community members prompts proactive measures to address potential future problems. implementing a sustainable development strategy will aid in reducing environmental impact and fostering long-term ecological balance in thailand (ebrahim et al., 2022). 3) wisdom/skills: the tradition of dyeing natural fibers, such as silk and cotton, with teak leaves has been a longstanding practice in phrae province, located in northern thailand. this traditional knowledge not only preserves local cultural values but also emphasizes the utilization of indigenous materials to produce dyes from teak leaves. the resulting colors and patterns on the fabric fibers are distinctive, embodying a unique identity that reflects the cultural heritage and individuality of the community (junsongduang et al., 2017). 4) textile products: the integration of local natural materials in textile product development serves as a model for lifelong learning within the community. the thai government has endorsed this approach to support continuous education as a means to bolster the grassroots economic system and strengthen community-level economies (brondízio et al., 2021). this model also facilitates the acquisition of knowledge and skills among local weavers, enabling them to effectively address the needs of contemporary consumers. utilizing locally abundant natural materials fosters sustainability in three key areas: 1) economic sustainability, 2) livelihood sustainability, and 3) environmental sustainability. the four factors influencing consumer satisfaction account for 86.0% of the variance, demonstrating their effectiveness in predicting demand and behavior towards textile products dyed with teak leaves. this approach not only supports community income stability by leveraging local wisdom but also promotes traditional thai handicrafts from northern thailand (tresnawati et al., 2020). utilizing local natural dyes aligns with environmentally friendly practices, differentiating these products from competitors. by applying local textile dyeing techniques with teak leaves, lamphun province can achieve economic and environmental sustainability, reduce chemical use, and improve the health of both weavers and the community. this process meets modern consumer demands for high-quality, eco-friendly products (ebrahim et al., 2022). conclusion this research explores the use of local materials, specifically teak leaves, to align with thailand 4.0 and the bcg economic model, aiming for sustainable development in social, environmental, and economic sectors. by integrating traditional wisdom and circular economy principles, the study supports the creation of ecofriendly textile products and fosters community involvement. utilizing abundant local resources not only promotes sustainable practices but also enhances economic opportunities and reduces poverty. the evaluation of new textile prototypes revealed four key factors influencing consumer satisfaction, highlighting this approach's effectiveness in minimizing environmental impact and preserving traditional dyeing practices while meeting modern demands for sustainable products. funding: this study did not receive any dedicated funding assistance. institutional review board statement: approval for this study was provided by the irb of king mongkut's institute of technology ladkrabang, according to document number ec-kmitl_67_029. transparency: the authors affirm that the text is characterized by integrity, veracity, and clarity, with no crucial elements of the inquiry being excluded, and any deviations from the original study design have been elucidated. this study adhered to the principles of academic integrity and ethical writing. competing interests: the authors affirm that they did not have any competing interests. authors’ contributions: all authors contributed equally to the conceptualization and design of the study. further, all authors read, examined, and approved the final version of the text for publication. agbioforum, 26(1), 2024 | 145 roengthanapiboon et al. — sustainable development: development of wisdom for dyeing natural fibers used to create… references ado, a., yahaya, h., kwalli, a. a., & abdulkadir, r. s. 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(2023). clinical efficacy and safety of combined treatment with hyaluronic acid and botulinum toxin type a for reducing facial wrinkles and increases rejuvenation. journal of natural science, biology and medicine, 14(2), 133-140. doi: https://doi.org/10. 4103/jnsbm.jnsbm_14_2_9 https://doi.org/10.1007/978-3-030-38532-3_7 https://doi.org/10.1007/978-3-030-38532-3_7 https://doi.org/10.1201/9781032629933-3 https://doi.org/10.4324/9781003018551-10 https://doi.org/10.1007/978-981-287-065-0_2 https://doi.org/10.1007/978-981-287-065-0_2 https://doi.org/10.4324/9781315749105 https://doi.org/10.4324/9781315749105 https://jestp.com/menuscript/index.php/estp/article/view/1575 https://jestp.com/menuscript/index.php/estp/article/view/1575 https://www.chulabook.com/test-prep/110507 https://redfundamentos.com/menu-script/index.php/rita/article/view/16 https://redfundamentos.com/menu-script/index.php/rita/article/view/16 https://www.proquest.com/openview/e62a08d03b7fa0211b22e29c5a0a269d https://www.proquest.com/openview/e62a08d03b7fa0211b22e29c5a0a269d https://sobiad.org/menuscript/index.php/ijebeg/article/view/1584 https://sobiad.org/menuscript/index.php/ijebeg/article/view/1584 https://doi.org/10.5993/ajhb.46.4.4 https://www.rpd-online.com/index.php/rpd/article/view/1538 https://www.rpd-online.com/index.php/rpd/article/view/1538 https://doi.org/10.4103/jnsbm.jnsbm_14_2_9 https://doi.org/10.4103/jnsbm.jnsbm_14_2_9 agbioforum, 26(3): 31-40. ©2024 agbioforum muftiadi et al — combinatoric efficiency model of clean water companies for strategic governance in indonesia combinatoric efficiency model of clean water companies for strategic governance in indonesia anang muftiadi* department of business administration, faculty of social and political sciences, universitas padjadjaran, indonesia. orcid id: https://orcid.org/0000-0003-4305-8061 email: anang.muftiadi@unpad.ac.id yoga putut afandi bandung institute of technology, indonesia. orcid id: https://orcid.org/0009-0008-1871-0867 email: yogapututa@gmail.com anang muchlis ministry of public works and public housing, indonesia orcid id: https://orcid.org/0009-0007-1114-8771 email: anangmuchlis@pu.go.id quyen minh pham thu dau mot university, viet nam orcid id: https://orcid.org/0000-0001-5478-5091 email: quyenpm@tdmu.edu.vn valendya rilansari sumatera institute of technology, indonesia orcid id: https://orcid.org/0009-0001-1884-1153 email: valendyarilansari@gmail.co.id the market share of clean water companies in indonesia (pdams) are very small compared to the demand growth as well as threat of scarcity of clean water occur. the clean water companies market share is around 28.85%. many of companies are not able to provide drinking water services that meet the standards, as clean water companies in indonesia are still inefficient therefore, fundamental solutions are needed to increase efficiency. this research aims to develop a comprehensive model of efficiency measurement of clean water companies in indonesia and develop it’s generic strategy to reduce inefficiency, based on two models by using multiple regression techniques with data from 398 companies. model-1 categorises the efficiency level of the company using standard and frontier equations based on cost curve, and model-2 uses factors that determine cost efficiency based on four clusters of scale production. the results of the look at display that many organizations are inefficient due to the have an impact on of manufacturing scale and different affecting elements in every cluster, mainly administrative elements, trendy expenses and water loss/ leakages. this is a essential hassle because easy water production is capital in depth with standardised generation. for practical tips, companies need to boom production manufacturing through growing new potential or thru mergers & acquisitions among small size organizations. to support the strategy, each employer additionally desires to solve its own micro-partial problems. for government and groups affiliation, it's miles recommended a coverage to cope with many elements to growth efficiency, which includes variations in the production scale and the big number of inefficient companies. the health of the operational system requires careful management when implementing institutional reforms which emphasize increased governmental responsibility. the strategic focus on these sectors enables smooth water companies to boost operational efficiency apart from self-performance improvement. additionally make a contribution to the critical intention of making sure sustainable get admission to to smooth water for all of indonesia. keywords: business governance, clean water, pdams, efficiency, frontier’s efficiency. introduction efficiency in providing clean water is under investigation by policymakers, research communities, regulators and business (benito et al., 2019; wuijts et al., 2021). in indonesia, the clean water companies market share is around 28.85% (friana, 2022) from a total of 91.05% access to national, and concentrated in urban areas. those companies called pdams as commonly owned by local governments. in many national acts and academic literature, the implementation of efficient water prices can cause redistributive and social problems, so they must be handled by public authorities (reynaud, 2016). the marketplace proportion of pdams are very small as compared to the call for boom as well as risk of scarcity of clean water occur, exacerbating the city water disaster (sedlak, 2023). ministry of public work and public housing evaluated the overall performance as many as 389 from 401 the groups in 2022. the result confirmed as 60.ninety three% groups are in “healthful”, 25.96% in “moderately unhealthy”, and 13.11% in “dangerous” conditions. besides that, lots of agencies have no longer been able to offer ingesting water services that meet the standards, as easy water businesses in indonesia are nonetheless inefficient (sukartini & saleh, 2016). the provision of water is an essential determinant of the welfare of a nation (dinka, 2018). the efficiency and productivity of the industries has been increasing (abbott & cohen, 2009), and therefore it’s important to be measured (carlton & perloff, 2000). unfortunatelty, efficiency is very important aspect and related to the right pricing policy. pricing for water services is implemented through full cost recovery by implementing efficient water prices and is considered the cornerstone of any policy related to sustainable water management (massarutto, 2007). thus, the problem of inefficiency in clean water companies in indonesia must be address seriously through good governance practices (umami et al., 2022). poor corporate governance will have implications for a worsening performance, which in turn can disrupt access to clean water (nur et al., 2018). otherwise, effective governance of water contributes to establishing distinct and sustainable goals and targets for water policy across various levels of government, implementing those goals and achieving the desired objectives or targets (oecd, 2018). fundamental efforts are required to enhance the https://orcid.org/0000-0003-4305-8061 mailto:anang.muftiadi@unpad.ac.id https://orcid.org/0009-0008-1871-0867 mailto:yogapututa@gmail.com https://orcid.org/0009-0007-1114-8771 mailto:anangmuchlis@pu.go.id https://orcid.org/0000-0001-5478-5091 mailto:quyenpm@tdmu.edu.vn https://orcid.org/0009-0001-1884-1153 mailto:valendyarilansari@gmail.co.id agbioforum, 26(3), 2024 | 32 muftiadi et al — combinatoric efficiency model of clean water companies for strategic governance in indonesia efficiency of clean water companies to increase performance comprehensively. this research aims to develop a comprehensive model of efficiency measurement of clean water companies in indonesia and develop it’s generic strategy to reduce inefficiency. the novelty of this research are : firstly, use macro-model including all companies data in indonesia, when other related studies usually use micro-model with single company data, or case study; secondly, including not only cost component variables, but also management and techninal variables, and finally: build a combinatoric models of efficiency to formulate the strategic governance for inefficiency reduction all pdams individually. the research results will be useful for : firstly, companies (pdams) individually; secondly, associations (perpamsi) of companies for sinergy and collaboration to improve their performance; thirdly, central and local governments policy and facilitation on national clean water access development in indonesia; finally, researchers for having comprehensive and generic reference on companies (pdams) study which is very limited in indonesia. this research are structured in an introduction, review of literature, method, results and their discussion, as well as conclusions and policy recommendations. review of existing literature water serves diverse functions across extraordinary sectors of society, including however no longer constrained to drinking, waste management, waste dilution, manufacturing items, agricultural activities, energy manufacturing and consumption (gleick, 1998). clean water is one of the most basic critical needs in human lifestyles, and clean water ought to be available in sufficient quantity and fine with assured continuity. consuming smooth water also can be a method to improve the welfare of lifestyles thru fitness popularity. the provision of water that meets appropriate requirements is an crucial determinant of the welfare of a network; consequently, such provision assumes paramount significance inside the development and advancement of a nation (dinka, 2018). the provision of smooth water with restricted amount and terrible satisfactory will bring about the emergence of financial and non-monetary influences on society. referring to the enjoy of canada, which has similarity with indonesia in time period of huge of region and a low populace density at rural region, as well as similarity in shape of presidency responsibility inside the smooth water region. the important (federal) government also presents investment and policy and regulatory oversight. in the simular circumstance, management of and get admission to to secure consuming water, equitable governance structures are need to be evolved (irvine et al., 2020). furthermore, accessibility issues continue to be a trouble for national governments and a few neighborhood governments. accessibility is the degree of courting among one region and some other that may be measured by way of the quantity, price, distance and time (howard et al., 2003). the primary characteristic of smooth water industry is this is incredibly capital-intensive nature (molinos-senante et al., 2020). therefore, manufacturing of easy water via businesses in indonesia suggests a pattern of growing returns to scale or the capacity for greater efficient use of factors of manufacturing if the quantity of manufacturing is extended (umami et al., 2022). referring to the numerous problems in supplying clean water mentioned above, from the supply facet, interest inside the productiveness and performance of the wastewater industries and water deliver has been growing (abbott & cohen, 2009). therefore, many research have been achieved at the efficiency of clean water corporations. in wellknown, efficiency is measured the use of 4 strategies: the least rectangular regression manufacturing model or price function, overall component productiveness index, records envelopment analysis (dea) and stochastic frontier (thanassoulis, 2000; woodbury & dollery, 2004; coelli et al., 2005; garcíasánchez, 2006; umami et al., 2022). among the embodiments of this method, namely, the efficiency measurement is carried out by estimating the cost curve, as well as for estimating economies of scale, where cost savings decrease and output increases (carlton & perloff, 2000), in a cubical cost curve (erfie, 2014) which is influenced by single as well multiple factors determine cost production (abbott & cohen, 2009; umami et al., 2022). therefore, a cost function estimation model for the basis of efficiency measurement can be built using two models, which are outlined in the following figure 1. figure 1: framework efficiency model and effort formulation. it is very important for management to understand performance primarily based on the economies of scope and sclae that may result in cost discount (novelli & spina, 2024), confer with revel in in spain. economies of scale and efficiency doubtlessly reduce charges (petkovšek et al., 2021). moreover, make the control of cost is essential, as they effect at once at the very last tariff charged to clients (mbavarira et al., 2021; islam et al., 2024). fundamental efficiency answers are constructed on efficiency evaluation and performance categories. the categorisation is acquired from a combination of two agbioforum, 26(3), 2024 | 33 muftiadi et al — combinatoric efficiency model of clean water companies for strategic governance in indonesia common price fashions: the version shaped based on influencing factors and the model shaped primarily based on cost curve. the two fashions are constructed with econometric technique. the advantage of the econometric technique while as compared with different nonparametric estimation techniques which includes index numbers. dea is that the econometric technique is extra together with variables (molinos-senante et al., 2020; miao et al., 2022; maziotis & molinos-senante, 2024). the mixture of the two models is accomplished on efficiency stage classes. literature references for each models are described as follows: model 1 this first model analyses the companies’ efficiency level based on the average cost through a cost function as a relation between average cost and volume of production. in this cost function, volume of production is related to economic of scale (crain & zardkoohi, 1978; fox & hofler, 1986; schmit & boisvert, 1997; estache & rossi, 2002). given the variation in the geographic extent and clients served by water companies both domestically and internationally, studies on economies of scale are pertinent to the water industry (abbott & cohen, 2009). the results show that on a small production scale, economies of scale increase when production increases. however, on a large production scale in england and wales show a tendency towards diseconomies of scale, although many studies have shown the economies of scale in water sector is shown in many studies (bhattacharyya et al., 1994; renzetti, 1999; garcia & thomas, 2001; ashton, 2000, 2003; shih et al., 2006; nauges & van den berg, 2007; umami et al., 2022). model 2 this model analyses the giant elements affecting the average value. those elements are as observe. first, chemical cost for processing raw water into a general of exceptional (mizutani & urakami, 2001; anwandter & ozuna, 2002; ashton, 2000, 2003; fraquelli & giandrone, 2003; garcia & thomas, 2001; umami et al., 2022). second, energy fee, which consists of strength and gas (anwandter & ozuna, 2002; ashton, 2000). third, preservation fee (schmit & boisvert, 1997; woodbury & dollery, 2004; umami et al., 2022). fourth, management and widespread cost, which includes wage, salary and management fee (ashton, 2000, 2003; aubert & reynaud, 2005; bottasso & conti, 2003). fifth, water loss from discrepancies in production and distribution volume and sixth, return on equity for the opportunity to growth overall performance (sauer, 2005; sawkins, 1996; woodbury & dollery, 2004). the companies’ efficiency efforts are based on a combination of two efficiency model analyses. the combination of fundamental aspects of efficiency will lead to efficiency efforts of all those companies to increase national clean water access in indonesia. companies’ pursuit of efficiency stems from a strategic amalgamation of two distinct efficiency models. by integrating essential components of efficiency, these companies aim to enhance their collective efforts to achieve widespread access to clean water and promote national water conservation in indonesia. refer to the experience in welsh and english, this type of research can assist policy makers to implement or design effective policies to enhance the efficiency of the water industry (molinos-senante et al., 2020). this holistic approach, encompassing core efficiency principles, serves as a foundation for driving efficiency initiatives across all participating companies. this collaborative endeavour contributes to the broader objective of safeguarding the country's water resources, ensuring their sustainable utilisation and fostering a greener future for indonesia. research methodology research approach this studies makes use of quantitative method with the value approach as the idea for measuring efficiency on smooth water organizations in indonesia. the populace length is 401 corporations, on the whole owned via nearbygovernments. the quantity of samples studied turned into 389 agencies or ninety seven% of the populace, which cowl almost all members of populace. the statistics had been accrued from ministry of public works and public housing audited record from 2019-2022, and converted into go-section information. this studies was designed by means of estimating the level of value performance with the cost model in an u-shape curve, and the cost version stricken by multiple figuring out factors. technique of analysis the first model of cost is using production volume as the independent variable, designed in a u-shape cubical function or frontier efficient model for four categories of company efficiency level. the second model of cost is using multiple affecting factors on cost. because the high variation of companie’s volume of production, hence it’s grouped into four clusters as shown in table 1. from the second model, we can identify significant factors affecting the cost for every cluster, and then categorized into two level of efficiencies. the clusters of companies are as follows: table 1: mean production level of clusters over 2018–2021 period (liter per second). cluster production capacity average production capacity variation coefficient (%) number of companies all 415 312.80 389 i >1,000 3,369 120.03 25 ii 350<-1,000 545 31.38 66 iii 190<-350 257 17.51 79 iv <190 94 52.13 219 source: ministry of public housing and public works (data processed). agbioforum, 26(3), 2024 | 34 muftiadi et al — combinatoric efficiency model of clean water companies for strategic governance in indonesia above efficiency fashions are achieved the usage of regression equations with the subsequent model specifications: model 1: we calculate performance levels on the basis of a quadratic cost characteristic via the use of common fee and extent of manufacturing (carlton and perloff, 2000) as follows: lny = bo +b1.lnx +b2.lnx2 + e (1) in which y denotes common cost (idr/m3) and x represents manufacturing vloume (million of mthree) the expected line of the above equation shows value efficiency fashionable that rely upon quantity of production. moreover, the improvement of version (1.1) primarily based on minimal value at special ranges of output which suggest the excellent performance amongst organizations as a frontier version (abbott & cohen, 2009). furthermore, all corporations are labeled into 4 classes, depending upon the position of the above equation and the frontier model which is given as follows: 1. efficient: the actual yi is less than the estimated price from [(1) – 0.5 ((1)(1.1))] 2. light green if the estimated value of y £ actual yi is less than estimate fee of y. 3. slightly inefficient; if the estimated fee of y from 1 £ actual yi is less than estimated price of y through [(1) + 0.5 ((1)(1.1))] 4. inefficient: in case if real yi is greater than estimated fee of y through [(1) + 0.5 ((1)(1.1))]. model 2: the groups performance degrees are calculated on the basis of the characteristic between the mean fee and the affecting elements in each firm cluster as shown in the equation (2) 𝑌𝑖 = 𝛽0 + 𝛽1𝑋1𝑖 + 𝛽2𝑋2𝑖 + 𝛽3𝑋3𝑖 + 𝛽4𝑋4𝑖 + 𝛽5𝑋5𝑖 + 𝛽6𝑋6𝑖 + 𝑒 (2) where, yi shows average cluster cost x1i denotes chemical fee, x2i represents electricity value, x3i denotes upkeep value and x4i management & preferred value of i cluster, all measured in idr/mthree. x5i measures water loss and x6i calculates the return on fairness of cluster (both measured in %) this model is used to categorize company’s efficiency level, by making a comparison between its actual and estimated cost. it is namely efficient companies if actual cost 𝑌𝑖 < 𝑌�̂�, and vice versa, inefficient companies if actual cost 𝑌𝑖 > 𝑌�̂�. each cluster indicates significant factors affecting the average costs. equation (1) and equation (2) in four clusters were tested with classical test, partial coefficient with t-test, multiple simultanous coefficient with f-test and the coefficient of determination with r2. by combining the four efficiency categories based on model 1 with the two efficiency categories from model 2, resulting in eight efficiency categories as the key important information to generate strategic efficiency solutions for each company. research findings model 1 the findings of model 1 which is a quadratic or u-shaped function are given as follows: logy =(3.86)*** (0.313)*** lnx + (0.118)***lnx2 + e (1) f(prob) = 0.000 and r square = 0.159 the above equation represents a highly significant production volume with average costs, with the value of r2 0.159, which indicates different efficiency levels of the company. moreover, the equation (1.1) is a frontier model of the three best companies as follows: lnyf =(3.26)***-(0.236)***ln xf + (0.1102)***lnxf2 +e (1.1) with f (prob) equal to 0.000 and r² equal to 1 the value of b0 which represents the frontier efficiency level from the best companies is less in equation (1.1) (which is 3.2611) as compared to equation (1) (which is 3.8617). model 2 capital-intensive businesses, more standardized technology, and production capacity reliant on local raw water supplies are characteristics of clean water production systems. in this case, the water production systems are decentralised according to the availability of raw water supply for more efficient distribution costs. however, because of the similar standards of technology and capital-intensive companies, the governance of those companies can be carried out centrally by national level. on average, all clean water companies produce 415 litres (per second) having more than three times larger value of standard deviation 1,298 litres (per second) as indicated by the coefficient of variation having the value 312.8% which shows a very large disparity in production scale among clean water companies in indonesia. on the basis of the above four clusters, we calculate regression equations for average cost and the six explanatory variables, but not all of those explanatory variables are significant. consequently, only significant explanatory variables were selected to include in the final model for every cluster. those variables are selected determinants which affect the mean cost as the basis for efficiency estimation analysis. the outcomes of the regression are given below. cluster i for cluster i, the outcomes of the equation (2) are given as follows: y = -1,055.7 + 2.225 +1.994. (0.262) (0.008)** (0.000)** + 89.88.x5 + e (2.1) (0.001)*** with f (prob) equal to 0,000 and adjusted r2 equal to 0.723. the highly significant factors in cluster i which affect the average cost are general and administration costs, energy costs and water costs. these factors significantly impact the average cost, with a high value (0.723) for coefficient of determinantion. cluster ii the outcomes of regression for cluster ii are as follows y = -210.87 +(1.67). x2 +(2.23). x3 + (1.58). x4 (0.730) (0.000)** (0.006)** (0.000)*** + 51.309. x5 44.546. x6 + e (2.2) agbioforum, 26(3), 2024 | 35 muftiadi et al — combinatoric efficiency model of clean water companies for strategic governance in indonesia (0.000)**8 (0.021)* with f (prob) equal to 0.000 and adjusted r2 equal to 0.706 the highly significant factors in cluster ii which affect the average cost are general and administration costs, energy costs and water costs and maintanance costs and significant on a negative slope on return on equity. these factors significantly impact the average cost, with a high value (0.706) for coefficient of determinantion. cluster iii the result of the regression for cluster iii are given as follows: y = -1,153.5 +2.45.x1 +1.52.x2 + 1.57. x3 (0.021)* (0.011)* (0.000)** (0.015)* + 1.8374. x4 + 64.365. x5 (0.000)** (0.000)** 42.033.x6 + e (2.3) (0.005)** with f (prob) equal to 0.000 and r2 adj equal to 0.763 the highly significant determinants in cluster iii which positively affect the average cost include general and administrative costs, energy and water costs, maintanance and chemical costs and return on equity (having a nagative slope). the value of determination coefficient is 0.763 for cluster iii. (1) the outcomes of regression for cluster iv are given in equation (2.4) as follows y = 2.59. x4 + 89.3. x5 + e (2.4) (0.000)** (0.000)** f prob = 0.000*** r2 adj = 0.483 the highly significant variables which positively impact the average cost include general and administrative costs and water costs. the coefficient of determination has the value of 0.483 in this regression. discussion model 1 the average value of diverse production volumes is depicted in a u shape from equation 1, indicating a decreasing price as manufacturing volume increases until it approaches a minimum value and the later increasing fees as production extent increases. taking the first derivative of the equation 1, through lny=−0.3132 + 0.237x, a minimal average fee of idr three,324/m3 is received, happening at a manufacturing volume of fifty five.8 million m3. at a larger manufacturing capacity, the average fee additionally increases. furthermore, equation 1.1, which is formed from groups with frontier efficiency, has a u-formed curve sample as nicely. if the agency's common value lies underneath equation 1, it is categorized as fee-green. the maximum green corporations (frontier role) are in curve of equation 1.1, which are furthest function from equation 1 curve. conversely, if the average fee of a sure manufacturing quantity is higher than the value in equation 1, the company is categorized as an inefficient company. figure 2 illustrated the position of each company on the basis of equation (1) and equation (1.1) then, the ones fashions are broken down into 4 classes of efficient agencies so that every one groups may be classified as follows: table 2: efficiency categories of companies. categories number of companies % efficient 25 6.4 slightly efficient 162 41.6 slightly inefficient 183 47.0 inefficient 19 4.9 total 389 100 source: research calculation. figure 2: efficiency categories in model 1. source: research calculation. 51.9% of organizations face efficiency challenges resulting in 47.0% mid-level inefficient companies (183) with another 4.9% severely inefficient companies (19). right efficiency levels within the studied sector include 41.6% company low-end efficiency (162 businesses) and 6.4% high-end efficient (25 organizations), while forty eight.zero% organizations fit the category as shown in table 2. organizations producing below fifty five.8 million mthree can optimize their efficiency using increased production volumes according to equation 1. about 3.34% of the 389 companies agreed with volumes exceeding 55.8 million m3 which accounted for thirteen total organizations. the possibility for most groups to experience expense reduction stands at a highly promising level. agencies operating below a usage scale of 55.8 million m3 will benefit from additional enhanced performance initiatives. model 2 table 3 illustrates that different elements cause cost changes between clusters according to analysis. table 3: determinant of cost efficiency. explanatory variables mean or average coefficient of variation (%) energy cost 457.2 82 chemical cost 131.8 135 admin & gen. cost 1,721.7 65 maintenance cost 222.4 76 return on equity -3.4 739 water loss 34 41 source: the data is taken from the ministry of public works and public housing. agbioforum, 26(3), 2024 | 36 muftiadi et al — combinatoric efficiency model of clean water companies for strategic governance in indonesia among cost factors the average cost of managing operations reaches1,721.7idr/mthree representing the highest price among all factors yet groups demonstrate limited cost variation (sixty five%). the organizational prices distribute similarly throughout their operational regions. being a capital-intensive organization this appears like an impractically high price. energy fees represent the second major cost component at idr 457.2/mthree but differ significantly between businesses (82%). various energy patterns emerge between businesses regarding their extreme gas and electricity consumption versus their usage of gravity as a production method. renovation expenses reach idr 222.4/m3 marking the third largest cost segment though variation between businesses reaches 76%. the price issue shows the largest variation across its range. the chemical compounds cost at 131.8 idr/mthree, with far larger variation level among companies (a hundred thirty five%). the utilization of uncooked water sourced from rivers with poor water quality differs markedly across groups when companies use springs and diversified unadulterated water sources for their water needs. several organizations lose 34% of their water supply through wastage because non-value factors have created major distribution inefficiencies. their experience of significant water loss costs remains balanced between each group. an adverse production loss rate at 1/3 of manufacturing capacity leads to a 200% increase in average operating expenses therefore escalating total production costs. although management would gain from roe reductions, the current average price remains unfavorable. agencies exhibit substantial variations in their return on equity ratios with 739 percent separating businesses experiencing substantial profits from those experiencing financial losses. when organizations develop performance intentions these elements must serve as critical factors of assessment. table 4 presents a summary of the determinant impacts and directional measures of variable relationships indicated through coefficients. data from table 4 shows that the combination of administrative and general fees generates the largest impact on average costs across all clusters despite their water usage percentage. industrial companies utilizing a standardized production design alongside extensive capital requirements need to prioritize improvements towards addressing crucial administrative fees and popular costs. expenditure ought to be decreased. the variable of water loss price impacts the common fee enormously due to the very high rate of 34 percent. this water loss issue is therefore a significant factor to be resolve. table 4: rank of significant factors. determinant factor slope cluster i cluster ii cluser iii cluster iv chemical cost (idr/m3) + 5 energy cost (idr/m3) + 3 3 3 maintenance cost (idr/m3) + 4 6 administration & general cost (idr/m3) + 1 1 1 1 water loss (%) + 2 2 2 2 return on equity (%) 5 4 source: research calculation. the 1/3 vast component is electricity prices, specially in i, ii and iii clusters or large clusters, while other variables are fantastically comparable. return on fairness and maintenance fees are the 0.33 that have an effect on the mean value. it is anticipated that return on equity helps the organization's performance, although it isn't always sufficient to aid the organization circumstance. the chemical substances consumption has a considerable impact on third cluster organizations. figure 3: efficient companies’ proportion by cluster. source: research calculation. agbioforum, 26(3), 2024 | 37 muftiadi et al — combinatoric efficiency model of clean water companies for strategic governance in indonesia deployment of clustering analysis confirms the complete impact of cost factors thereby validating multiple essential operational components that influence efficiency initiatives. companies that produce on a larger scale generally experience a reduction in fundamental factors influencing their average cost values as shown in figure 3. the smallest scale cluster iv organizations demonstrate fewer problematic fundamental elements together with minimal issues in administrative costs and water management. an analysis of 389 companies reveals efficiency exists in only 36.8% of these companies. the total effort needed to improve efficiency becomes excessively weighty because indonesia has numerous companies that need restructuring. the number of problems that must be tackled becomes larger as companies have smaller production volumes.large scale producers within cluster i demonstrate efficient operations at a rate of 52% while smaller scale companies increasingly fail to meet efficiency requirements. only 57 out of 219 companies or 26.0% reach efficiency standards in production facilities belonging to cluster iv size category. efficient operations decrease as companies choose smaller production scales. implications solutions for efficiency performance responses have become excessively complex since many elements contribute to poor company operation and manufacturing difference alongside limited agency efficiency levels. single maturation towards efficiency can only be achieved through balanced operational and institutional efforts which business management requires absolute principal government engagement. several fundamental methods to enhance group performance stem from a combined analysis of model 1 and model 2's business performance rankings shown in table 5. performance solutions are required by 76.1% or 296 of included businesses. the 4 popular performance solutions are found based totally on the combinatoric of version-1 and version-2 are as follow: table 5: generic efficiency solutions. categories model 1 model 2 number of companies % general efficiency solution i efficient efficient 14 23.9% no specific solution is needed slightly efficient efficient 79 ii efficient inefficient 11 24.1% options for minor solution for efficiency on main affecting factors on cost. slightly efficient inefficient 83 iii slightly ineficient efficient 46 12.9% increase efficient standard solutions on key factors affecting cost. inefficient efficient 4 iv slightly ineficient inefficient 137 39.1% increase major efficiency solutinos by structuring factors affecting cost totally. inefficient inefficient 15 total 389 100% source: studies calculation. category one: when model 1 identifies either green or barely efficient agencies while model 2 shows efficiency then specific performance solutions are unnecessary for such businesses. the number of corporations in this classification totals ninety three entities among the entire 393 corporations studied. category two: based on these results the employer requires selection-making and minimal action on performance determinants once model 1 indicates green or slightly efficient results while model 2 shows inefficient operation. this class includes ninety four of ninety eight different organizations accounting for 24.1 percent of all companies. category three: any organization which performs marginally inefficient through model 1 needs substantial performance upgrades to align with model 2 standards. this sector includes 50 agencies out of the 388 which constitute 12.9% of the total agencies. category four: your employer must focus on primary performance solutions for restructuring critical elements after model 1 identifies the organization's efficiency as slightly inefficient or inefficient yet model 2 shows inefficiency. the 152 organizations make up 39.1% of all companies on this category. recommendations practical recommendations for inefficient companies is to increase volume of production by developing new capacity or through mergers and acquisitions between small size companies to decrease management costs. it is consistent with previous studies in japan, which suggest the merging of larger units and small water utilities as a viable solution for reducing the unit costs and gain economies of scale (liu & fukushige, 2020). to strengthen the main strategy, each company also needs to solve its own partial problems, such as reducing water losses and cost of energy, maintenance cost for dan checimal cost. the combined efforts of local and provincial along with district government authorities in indonesia alongside perpamsi industry organization work to respond to various factors impacting operational efficiency including differences in manufacturing size and multiple inefficient business operations. the operational efficiency solutions need to harmonize with institutional reforms in enterprise governance which require intensified involvement from the government. the intervention in these critical regions enables smooth water firms to improve their operational performance as well as assisting the essential mission of providing sustainable access to clean water throughout indonesia. future water enterprise development in indonesia will lead to sustainable and prosperous outcomes in this field. conclusion analysis of 389 pdam organizations using common price and production quantity relationships shows a u-shaped agbioforum, 26(3), 2024 | 38 muftiadi et al — combinatoric efficiency model of clean water companies for strategic governance in indonesia pattern that reduces costs between those variables. the ushaped curve demonstrates cost minimization of idr three,324 /mthree at 55.8 million mthree production volume which applies to ninety six.66% of organizations below this volume. the fashions demonstrate that 51.9% of corporations operate below their most efficient level. the main variables which determine average cost emerge from calculations using multiple regression produced for four production capability groups whereby administrative & standard costs and water loss show the greatest impact. production of clean water faces serious operational hurdles because it needs large capital investments using basic standardized technology. according to this version 36.8% of firms demonstrate high efficiency rates but smaller manufacturing facilities correlate with less efficient operations. limitations the limitation of this research is treating all companies homogeneously in which indonesia have different geographical backgrounds. due to the differences in geographic factors in indonesia, further in-depth studies are needed by taking detail of geographic differences into account. this will support micro-partial problem solving efforts. differences in geographic factors 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administrative, college of administrative sciences, al-mustaqbal university, babylon, hillah, 51001, iraq. orcid id: https://orcid.org/0009-0004-8892-3826 email: ahmed.hasan@uomus.edu.iq amjed hameed majeed* department of business administrative, college of administrative sciences, al-mustaqbal university, babylon, hillah, 51001, iraq. orcid id: https://orcid.org/0000-0001-9015-5329 email: amjed_hameed@uomus.edu.iq hasan majdi prof dr, college of engineering and, technologies al-mustaqbal university, babylon 51001, iraq. orcid id: https://orcid.org/0000-0001-6752-4835 email: dr.hasanshker@uomus.edu.iq amran harun faculty technology management and business univirsiti tun hussien oon malaysia 86400 parit raja, johor. orcid id: https://orcid.org/0000-0003-4956-8134 email: amranh@uthm.edu.my this research examines the potential of social marketing as a strategic mechanism for alleviating poverty in iraq through diverse consumer-engagement approaches aimed at fostering awareness and involvement in a pro-poor agenda. given iraq’s critical economic challenges, the study highlights how social marketing facilitates tangible behavioural change among consumers to support impoverished communities. social marketing tools serve to educate individuals on poverty-related issues while simultaneously mobilising resources and support through targeted outreach initiatives, enabling developing nations to address social challenges effectively. a mixed-methods approach was employed to assess the effectiveness of social marketing in motivating consumer participation. a comprehensive questionnaire was utilised to collect data on participants' awareness of social marketing strategies and their perspectives on assisting those in poverty. social marketing campaigns actively engage consumers, and this participation generates solutions that contribute to poverty reduction within communities. the findings underscore the efficacy of social marketing in addressing economic challenges and providing practical solutions for poverty relief initiatives. the study offers valuable insights for policymakers and social responsibility professionals in formulating effective strategies to integrate social marketing into poverty alleviation efforts through digital investment partnerships and community-based interventions. keywords: social marketing, consumer engagement, poverty, poverty alleviation. introduction iraq continues to grapple with persistent structural challenges, as ongoing conflicts, political instability, and economic fragility exacerbate poverty (hamoudi, köppe, & winston, 2023). according to the world bank, a significant proportion of iraqis live below the poverty threshold, lacking access to essential healthcare, food, and education (taniguchi et al., 2021). government-led and charitable poverty alleviation initiatives often yield limited outcomes due to the deep-rooted nature of poverty in the region, necessitating innovative and distinct solutions (ayoo, 2022). there is an urgent need for novel strategies to address this issue effectively. social marketing has emerged as a contemporary approach specifically designed to enhance poverty reduction efforts by fostering behavioural change among target populations (sabeeh, ali, & al-jawaldeh, 2022; younis & khudhiar lafta, 2021). through innovative social marketing strategies, individuals in impoverished communities can actively engage in initiatives that generate a more profound and sustainable social impact. empirical evidence comprises a crucial blend of measurements and analytical methods essential for examining diverse forms of data (madan & ashok, 2024). researchers employ this approach across various sectors to identify and interpret significant patterns within datasets. analysing the impact of entrepreneurial activities on consumer behaviour enhances public welfare by leveraging commercial marketing strategies (alzoubi, 2022), providing valuable insights into these dynamics. this communication strategy is particularly effective in raising public awareness and fostering empathy towards iraq’s pressing humanitarian crisis while contributing to poverty alleviation. the primary aim is to secure increased funding and support for initiatives that assist those experiencing poverty and drive long-term socio-economic improvements (maulu et al., 2021). by utilising existing community resources, social marketing facilitates collaboration between individuals and organisations in pursuit of sustainable objectives. early engagement strengthens the sustainability of such initiatives, fostering economic development and social transformation within communities. collective action among various stakeholders yields significant positive outcomes that benefit society as a whole (hübscher, hensel-börner, & henseler, 2022). for social marketing to be effective in iraq, it must be strategically integrated within the nation’s distinct cultural, social, and economic framework. tailored campaigns that align with deeply rooted local traditions and values have been shown to enhance consumer engagement in poverty alleviation efforts. storytelling, a powerful and culturally resonant tool, alongside the strategic use of social media and community events, fosters a strong sense of collective responsibility in supporting vulnerable populations, particularly in times of economic hardship (ali & anwar, 2021). through well-coordinated and inclusive initiatives, individuals can be actively encouraged to contribute to efforts aimed at improving the well-being of those in need. these collaborative approaches strengthen community https://orcid.org/0000-0002-3106-655 mailto:kadhim.ghaffar.cku@atu.edu.iq https://orcid.org/0009-0004-8892-3826 mailto:ahmed.hasan@uomus.edu.iq https://orcid.org/0000-0001-9015-5329 mailto:amjed_hameed@uomus.edu.iq https://orcid.org/0000-0001-6752-4835 mailto:dr.hasanshker@uomus.edu.iq https://orcid.org/0000-0003-4956-8134 mailto:amranh@uthm.edu.my agbioforum, 26(2), 2024 | 12 kadhim et al — social marketing for change: strategies to combat poverty through consumer engagement in iraq solidarity, reinforcing the crucial role of social cohesion in addressing poverty in a sustainable and context-specific manner (winston, 2022). with the rapid expansion of digital technologies in iraq, these tools are not merely advantageous but essential for enhancing social marketing and outreach initiatives, enabling broader audience engagement and maximising overall impact (ahmed et al., 2022). social media platforms, mobile applications, and online channels have facilitated organisations in connecting with the public, disseminating critical information, and sharing valuable resources with ease. this digital integration fosters effective communication and interaction, strengthening collaboration among diverse groups (al mokdad, 2025). when widely adopted across industries, these technologies can significantly enhance the effectiveness of social marketing strategies, improve consumer engagement, and contribute to poverty alleviation efforts in the region (de luca et al., 2022). as digital tools become increasingly accessible across different demographic groups, they offer expanded opportunities for meaningful social engagement and community-driven initiatives, fostering a more connected and informed iraqi society (o’driscoll & costantini, 2024). this study investigates social marketing strategies aimed at engaging consumers in meaningful poverty alleviation efforts across iraq. it examines various case studies and innovative approaches that demonstrate how social marketing can serve as a catalyst for societal change. the findings offer valuable insights for governments, ngos, and business leaders seeking to understand how consumer engagement can drive sustainable development initiatives in iraq. analysing these strategies highlights the potential for developing effective, community-focused solutions that contribute to long-term social and economic improvements. inquiry framework 1. how do social marketing strategies impact consumer engagement in poverty reduction initiatives? 2. to what extent does consumer engagement mediate the relationship between social marketing strategies and measurable poverty alleviation outcomes? 3. how does consumer engagement influence the perceived effectiveness of social marketing campaigns in addressing poverty? research goals 1. to assess the influence of social marketing strategies on consumer engagement in poverty alleviation initiatives in iraq. 2. to examine the mediating role of consumer engagement in the relationship between social marketing strategies and poverty alleviation outcomes. 3. to analyse the correlation between consumer engagement and the perceived effectiveness of social marketing campaigns in addressing poverty. hypothesis development building on the comprehensive insights derived from the literature review, this study formulates the following hypotheses. these hypotheses are strategically developed to direct the research on implementing effective social marketing strategies aimed at enhancing consumer engagement for the critical objective of poverty reduction in iraq. • hypothesis 1: there is a positive relationship between consumer engagement in using community outreach, storytelling, and social media with the performance of social marketing campaigns towards poverty alleviation in iraq. • hypothesis 2: social marketing messages culturally aligned positively influence consumers to engage and head to the contributing for poverty alleviation efforts in iraq. • hypothesis 3: the use of social media marketing tools increases consumer involvement in social marketing campaigns, resulting in increased awareness and support for poverty alleviation initiatives. scope of the study this study investigates the role of social marketing strategies in promoting consumer engagement as a means of alleviating poverty in iraq. employing a structured quantitative research approach, it captures perspectives from individuals across various socio-economic backgrounds, offering valuable insights into the practical implications of marketing-based strategies for enhancing public participation in poverty-related initiatives. the study encompasses diverse experiences and perceptions within iraqi society by focusing on both urban and peri-urban settings. it is framed around three key dimensions: social marketing strategies, consumer engagement, and poverty alleviation outcomes. the research examines how social marketing campaigns shape public discourse on poverty, influence societal attitudes, and drive collective action for social change. additionally, it evaluates the extent to which consumer engagement—through awareness campaigns, volunteering, and digital advocacy—serves as a catalyst for measurable socio-economic progress. the findings of this study offer valuable insights for policymakers, development organisations, and marketing strategists aiming to utilise consumer engagement in socioeconomic initiatives. by examining the pathways through which social marketing drives behavioural change, the research presents practical guidance for developing more effective, culturally appropriate, and demographically inclusive campaigns for poverty alleviation. although the study focuses on iraq, its conceptual framework and methodological approach ensure its applicability to other regions experiencing comparable socio-economic challenges, thereby enhancing its broader academic and practical significance. literature review social marketing has emerged as a strategic approach to addressing social issues, including poverty. it applies commercial marketing principles to promote social welfare (schmidtke, kubacki, & rundle-thiele, 2021), requiring an in-depth understanding of consumer behaviour, cultural contexts, and the specific challenges faced by target communities. within this framework, social marketing is recognised as an effective tool for raising awareness, mobilising resources, and shaping attitudes to combat poverty (gordon, spotswood, & dibb, 2022). agbioforum, 26(2), 2024 | 13 kadhim et al — social marketing for change: strategies to combat poverty through consumer engagement in iraq case consumer engagement in social marketing: an overview and research agenda social marketing campaigns must fully recognise the critical role of consumer engagement, as it is this engagement that drives active participation and fosters behaviours capable of generating meaningful and lasting social change within communities (chae, 2021). such engagement encompasses a wide range of activities, including educational initiatives aimed at informing the public, community outreach programmes designed to enhance awareness and involvement, and social media campaigns that utilise digital platforms to connect with target audiences (mostafa, 2021). these elements collectively contribute to effectively engaging consumers and fostering relationships that support social good. previous research in this field has demonstrated that active consumer participation is strongly associated with positive campaign outcomes. specifically, studies indicate that heightened consumer awareness and increased participation rates significantly enhance the effectiveness of poverty reduction initiatives (cheung et al., 2021). these strategies not only encourage individuals to take action but also facilitate sustained engagement in initiatives that contribute to long-term social transformation (nicoli et al., 2022). consumer behaviour in iraq is influenced by a range of cultural factors that are deeply embedded in social norms and local traditions. social marketing campaigns must be designed to align with the values, beliefs, and customs that shape iraqi society (qasim, 2021). empirical research has demonstrated that culturally tailored marketing initiatives consistently achieve higher levels of consumer engagement, as they resonate more effectively with the target audience. such efforts not only enhance the impact of campaign messages but also encourage stronger commitments to collective social responsibilities, leading to improved community outcomes and reinforcing social cohesion (hamzawi, 2022). mediating effect of consumer engagement in social media strategies and poverty alleviation outcomes social media has become an increasingly influential tool in poverty alleviation, as consumer participation directly links digital engagement with tangible social impact. by facilitating rapid information sharing and collaborative efforts, social media strengthens interactions between communities and organisations, enhancing outreach effectiveness (ali qalati et al., 2020). research indicates that the adoption of social media enables organisations to better connect with their target audiences, fostering engagement and resource mobilisation. platforms also serve as educational tools, raising awareness about poverty and encouraging collective action to secure funding, resources, and information. for instance, digital green provides farmers in developing regions with an online space to exchange agricultural techniques, supporting global poverty reduction efforts. social media strategies prove most effective when consumers actively engage, as those who show interest are more likely to participate in initiatives and disseminate information, amplifying impact. studies further highlight how consumer motivations for online engagement influence their social media behaviours (chen et al., 2021). trust strengthens the link between social media marketing and consumer purchasing behaviour, as noted by singh et al. (2025). consumer engagement acts as e-empowerment, fostering social capital through online interactions, which enhances customer involvement by sharing insights and building communities. this empowers individuals to drive change and support poverty alleviation. studies indicate that effective social media strategies, boosting trust and empowerment, enhance consumer engagement, thereby improving poverty reduction outcomes (mostafa, 2021). social marketing campaigns in addressing poverty social media marketing serves as a powerful and effective tool for promoting positive social practices across arab nations. compared to traditional methods, social media campaigns offer a unique opportunity to disseminate essential messages to a much broader audience, thereby enhancing the impact of poverty reduction initiatives (ravishankar, 2021). this modern approach has already demonstrated success, as research suggests that effectively engaging consumers in the digital space requires leveraging these online platforms and aligning with social causes that resonate with consumer values (rane, achari, & choudhary, 2023). social media content that reflects shared values fosters a sense of community while encouraging long-term behavioural changes across diverse cultural contexts. additionally, social media facilitates the design of targeted initiatives that inspire user participation, leading to more effective and sustainable outcomes in poverty alleviation efforts (hollebeek, 2011). people become active participants by engaging in and showing commitment to social marketing projects (brodie et al., 2013). participants naturally internalise campaign messages and share them, along with recommended actions, to support its goals (dessart, veloutsou, & morgan-thomas, 2015). social marketing campaigns on poverty aim to educate the public on helping the poor, making wise spending choices, and supporting better economic decisions (alan, 2006). these campaigns use techniques like persuasive messaging and online/offline engagement to drive positive social change (peattie & peattie, 2009). greater participation in such initiatives enhances campaign effectiveness and social impact (domegan et al., 2013). social marketing campaigns achieve better results with consumer participation, as engaged individuals amplify outreach by sharing campaign messages both personally and online, driving greater social change (van doorn et al., 2010). participation through volunteering and crowdfunding enables direct involvement in poverty relief projects (bublitz, peracchio, & block, 2010). digital technology enhances campaign growth by facilitating interactions with consumers, who can share feedback, propose solutions, and write reviews (smith, fischer, & yongjian, 2012). digital engagement improves campaign outcomes, particularly for agbioforum, 26(2), 2024 | 14 kadhim et al — social marketing for change: strategies to combat poverty through consumer engagement in iraq poverty relief projects requiring public support to gather funds and backing (zollo et al., 2020). methodology this study examines social marketing strategies for consumer engagement as a mechanism for addressing poverty in iraq. to achieve this, a structured quantitative research design was employed, collecting data from a representative sample across various provinces in the country. sampling method individuals were sampled from urban and peri-urban areas in iraq based on their perceived receptiveness to social marketing campaigns. as shown in table 1, a total of 350 respondents were selected, with data collected using a stratified random sampling method. participants were stratified by demographic factors, including age, gender, education, and income levels. this approach proved effective in capturing diverse perspectives on social marketing and its potential impact on poverty alleviation. data collection a structured questionnaire was employed to collect data, covering sections on demographic information, familiarity and participation in social marketing initiatives, and consumer engagement and attitudes towards poverty alleviation. to accommodate linguistic diversity, the survey was available in both english and arabic. data collection spanned three months, utilising both online surveys and in-person interviews to reach respondents with varying levels of technology access. full disclosure of the study's objectives was provided, and an explanatory statement ensured that informed consent was obtained in accordance with ethical guidelines. this methodology offers a comprehensive framework for assessing the potential of social marketing in addressing poverty through consumer participation in iraq. by employing a robust sampling technique and a thorough data collection process, the study ensures the validity and reliability of its findings. table 1: demographic profile of respondents. demographic variable category percentage gender male 190 54.3 female 160 45.7 age group 18-24 90 25.7 24-34 130 37.1 35-44 70 20.0 45 and above 60 17.1 education level primary school 30 8.6 secondary school 90 25.7 bachelor's degree 190 54.3 postgraduate degree 40 11.4 employment status employed 130 62.9 unemployed 130 37.1 monthly income (usd) less than 300 140 40.0 300 600 140 40.0 more than 600 70 20.0 variables measurement and instruments this research adopts a methodical framework to assess the influence of social marketing on poverty alleviation among iraqi consumers. a structured questionnaire is utilised to investigate essential variables, incorporating nine items distributed across five principal constructs. these are evaluated using a five-point likert scale, ranging from 1 (strongly disagree) to 5 (strongly agree). additionally, each variable is supplemented with further inquiries to capture subtleties in consumer participation, social marketing tactics, and their effectiveness in mitigating poverty, as outlined in table 2. table 2: variables and sample questions. variable type measurement tool sample questions scale type social marketing strategies independent questionnaire the social marketing campaigns provide valuable information about poverty issues. 5-point likert scale i frequently see advertisements promoting social marketing initiatives related to poverty alleviation. 5-point likert scale the messages used in social marketing campaigns resonate with my understanding of poverty. 5-point likert scale consumer engagement independent questionnaire i regularly participate in community events organized by social marketing campaigns. 5-point likert scale i feel motivated to volunteer for initiatives focused on poverty alleviation. 5-point likert scale i share information about social marketing campaigns on my social media platforms. 5-point likert scale poverty alleviation impact control demographic questionnaire i have observed positive changes in my community due to social marketing efforts aimed at poverty reduction. 5-point likert scale social marketing initiatives have increased community support for low-income families. 5-point likert scale i believe that the social marketing campaigns have successfully raised awareness about poverty in my area. 5-point likert scale agbioforum, 26(2), 2024 | 15 kadhim et al — social marketing for change: strategies to combat poverty through consumer engagement in iraq data analysis the hypotheses were empirically tested using covariancebased structural equation modelling (cb-sem) in amos software. amos is preferred over alternatives like lisrel, eqs, and mplus due to its ability to provide accurate estimations, even for highly complex models. to ensure rigor and reliability, the data analysis was conducted in three main stages: common method bias (cmb) analysis recognising the potential distortion of self-reported data due to common method bias, harman’s single-factor test was employed. this test determined whether a single factor dominated the underlying results, thereby confirming the integrity of the data when the assumption held true. examination of the measurement model at this stage, the study conducted a thorough evaluation to confirm the reliability and validity of the measurement scales. to verify the structural integrity and model alignment, both exploratory factor analysis (efa) and confirmatory factor analysis (cfa) were applied, ensuring that each construct accurately captured its theoretical essence. internal consistency, along with convergent and discriminant validity, was rigorously examined using established statistical measures, including cronbach’s alpha, cr, and ave (hair et al., 2013). the structural model evaluation the structural model hypothesised relationships were tested using bootstrapping. partial least squares structural equation modelling (pls-sem) was used to evaluate research hypotheses and validate internal variable correlations (e.g., t-statistics, path coefficients, and p-values). this investigation examined important drivers' direct and indirect effects on employees' digital technology adoption aspirations. this strategy illuminated the relationship between social marketing, customer engagement, and poverty reduction in iraq (byrne, 2013). result normality of data and hsf test for common method bias the test for data normality (as shown in table 3) was conducted to ensure that the study variables met the necessary assumptions for analysis. normality was assessed using skewness and kurtosis values, with skewness ranging between -2 and +2 and kurtosis between -7 and +7. these values fall within the acceptable thresholds for sem, indicating an adequate level of normality (kline, 2023). in line with table 3, all constructs satisfy the conditions for skewness and kurtosis, confirming that the dataset adheres to the normality assumption required for sem analysis. skewness and kurtosis are key statistical measures used to assess data distribution, where skewness evaluates asymmetry, and kurtosis examines the sharpness of the distribution’s peak or the presence of extreme values (kim, 2013). the social marketing strategies variable exhibits a symmetric distribution, as its skewness value of 0.65 falls within the accepted range of -2 to +2 (george & mallery, 2019). additionally, the kurtosis value of -0.47 remains within the recommended -7 to +7 threshold (westfall, 2014), indicating a standard tail pattern. similarly, the consumer engagement variable presents a skewness of 1.20, reflecting moderate positive distribution balance. despite its right-skewed nature, the data maintains an appropriate normal distribution stance. the kurtosis value of 0.85 remains well within acceptable limits, further confirming that the dataset follows typical distribution characteristics and remains suitable for analysis (byrne, 2013). the poverty alleviation impact management data exhibits a slight negative skewness of -0.75, indicating a minor leftward inclination, yet it aligns with normality standards (hair et al., 2018). the kurtosis value of 1.02 reflects normal tail behaviour, consistent with field (2024) criteria. all variables maintained appropriate skewness and kurtosis levels, demonstrating dispersion patterns close to normal. this confirms the suitability of parametric statistical analysis, as data normality standards are met without significant deviations (pallant, 2020). table 3: data normality and harman’s single factor (hsf) test for common method bias. variable skewness kurtosis threshold (skewness) threshold (kurtosis) social marketing strategies 0.65 -0.47 between -2 and +2 between -7 and +7 consumer engagement 1.20 0.85 between -2 and +2 between -7 and +7 poverty alleviation impact -0.75 1.02 between -2 and +2 between -7 and +7 harman's single factor test of common method bias when both dependent and independent variables stem from a single source, cmb may distort correlations and undermine result validity. to detect cmb, the cma test was applied using harman’s single factor (hsf) test. in exploratory factor analysis (efa), all variables were loaded onto a single factor (g factor). if this factor explains over 50% of total variance, cmb is present (hu & bentler, 1999; podsakoff et al., 2003). table 4 shows that a single factor accounted for only 35% of variance, indicating minimal risk of cmb in this study. table 4: harman’s single factor test results. factor total variance explained single factor. 35% evaluation of the measurement model the assessment of the measurement model provides critical insights into the reliability and validity of the constructs included in the study. this evaluation is essential to confirm that the relationships among the constructs are accurately depicted and that the model serves as a robust and reliable framework for further analysis. agbioforum, 26(2), 2024 | 16 kadhim et al — social marketing for change: strategies to combat poverty through consumer engagement in iraq reliability & internal consistency cronbach's alpha and composite dependability assessed each construct's internal dependability. a construct is reliable when cronbach's alpha and cr exceed 0.70 (hair et al., 2013), as seen in table 5. table 5 shows that all constructs exceeded cronbach's alpha and cr thresholds, indicating measure reliability. table 5: reliability and internal consistency. construct cronbach’s alpha composite reliability (cr) social marketing strategies 0.83 0.87 consumer engagement 0.78 0.82 poverty alleviation impact 0.83 0.88 convergent validity furthermore, ave was utilised to assess convergent validity, which examines whether items intended to measure the same construct are indeed correlated. convergent validity was confirmed as the ave values exceeded the threshold of 0.50 (fornell & larcker, 1981), as presented in table 6. the research model demonstrates strong convergent validity, as all ave values exceed the 0.50 threshold. construct validation relies on the degree to which different measures of the same concept are interrelated. convergent validity is established when the ave value reaches or surpasses 0.50 (fornell & larcker, 1981). all three constructs in this study meet this criterion. social marketing strategies exhibits validity with an ave of 0.66, exceeding the benchmark and indicating that its measurement indicators effectively capture its intended meaning. similarly, social engagement solutions achieves an ave of 0.68, fulfilling the necessary standard (hair et al., 2010). the construct of poverty alleviation impact also demonstrates strong convergent validity, with an ave of 0.69. given that all constructs surpass the 0.50 threshold, the research model reliably measures the latent variables, ensuring its suitability for structural equation modelling (sarstedt, ringle, & hair, 2022). empirical research affirms that an ave above 0.50 signifies that the construct explains more variance in its indicators than is attributed to measurement error (henseler, ringle, & sarstedt, 2015). as all constructs in this study meet this requirement, the measurement model exhibits strong convergent validity, reinforcing the reliability and credibility of the research findings. table 6: convergent validity. construct value threshold social marketing strategies 0.66 > 0.50 social engagement 0.68 > 0.50 poverty alleviation impact 0.69 > 0.50 discriminant validity discriminant validity is crucial for establishing that each construct is separate from the others. the fornell-larcker criterion stipulates that the square root of the ave for each construct must surpass its correlations with any other constructs, so guaranteeing that the constructs assess distinct concepts without substantial overlap. the findings in table 7 validate that each construct retains its individuality, as evaluated by the fornell-larcker criterion (fornell & larcker, 1981). table 7: fornell-larcker criterion. construct social marketing strategies social engagement poverty alleviation impact social marketing strategies 0.81 social engagement 0.59 0.78 poverty alleviation impact 0.53 0.63 0.83 the findings demonstrate that social marketing strategies (0.81), social engagement (0.78), and poverty alleviation impact (0.83) are conceptually distinct, as their ave square root values surpass their respective correlations with other constructs. for instance, the correlation between social marketing strategies and social engagement is 0.59, remaining below their ave square roots (0.81 and 0.78, respectively). similarly, social marketing strategies (0.53) and social engagement (0.63) exhibit lower correlations with poverty alleviation impact, reinforcing the validity of the constructs. these results confirm that each construct accurately represents its intended concept rather than overlapping with other variables. establishing strong discriminant validity enhances the robustness of the measurement model and ensures that the constructs remain theoretically and empirically distinct. this validation strengthens the credibility of subsequent structural equation modelling (hair et al., 2010) (henseler et al., 2015). in table 8, the htmt ratios confirm valid construct distinction, with all values below the 0.85 threshold (henseler et al., 2015). the htmt value for social marketing and consumer engagement (0.72) and other ratios demonstrate that the measurement model meets validity standards (hair et al., 2010). this indicates that the examined variables are distinct in both theoretical and practical contexts. table 8: heterotrait-monotrait ratio (htmt). hypothesis path coefficient standard error social marketing → consumer engagement 0.72 < 0.85 consumer engagement → poverty alleviation 0.67 < 0.85 social marketing → poverty alleviation 0.68 < 0.85 agbioforum, 26(2), 2024 | 17 kadhim et al — social marketing for change: strategies to combat poverty through consumer engagement in iraq discussion the findings highlight the potential of social marketing strategies to shape consumer behaviour and contribute to poverty reduction in iraq. the study demonstrates that social marketing can drive both individual and collective behavioural transformations, ultimately supporting economic progress. the results indicate that culturally and socio-economically tailored social marketing campaigns effectively engage consumers by increasing awareness of poverty-related issues and mobilising support for targeted interventions. these findings align with existing research on social marketing’s role in influencing consumer decisions, guiding behaviour, and generating societal benefits. in particular, the study underscores the importance of well-designed communication strategies, strategic partnerships, and consumer-centred initiatives in tackling poverty—core principles of social marketing aimed at driving positive societal change. this research expands the literature on social marketing by examining its application within the workforce of a developing economy involved in poverty alleviation efforts. this study employs social marketing theory to illustrate how consumer engagement can enhance awareness and address socio-economic challenges. by extending the application of this theory to poverty alleviation in iraq, the research highlights the effectiveness of consumer-driven campaigns in generating both immediate and long-term socio-economic benefits. furthermore, the findings contribute to the theory of planned behaviour by demonstrating how well-structured social marketing initiatives can cultivate pro-poor attitudes and behavioural intentions (ajzen, 1991). these insights provide practical implications for policymakers, ngos, and businesses aiming to harness social marketing for poverty reduction in iraq. to enhance relevance and consumer engagement, marketers should design interventions that reflect iraq’s unique cultural and socio-economic landscape (donovan & henley, 2010). effective social marketing campaigns should integrate efforts across government, ngos, and the private sector to maximise their impact on poverty alleviation (peattie & peattie, 2003). both non-profit and for-profit organisations should focus on educating consumers through accessible, empathetic, and informative strategies, fostering sustained engagement and collective action in addressing poverty. limitations the findings of this study are specific to iraq and may not be directly generalisable to countries with distinct socioeconomic and cultural contexts. additionally, the discussion lacks depth in addressing various dimensions of marketing, particularly the emotional and psychological drivers underlying social marketing, which may limit a comprehensive understanding of consumer engagement behaviour. future research could address these limitations by employing longitudinal data to assess the sustained impact of social marketing interventions on poverty alleviation. comparative analyses of social marketing strategies across multiple developing countries could enhance understanding of their effectiveness and reveal context-specific factors. furthermore, integrating sociopsychological variables such as consumer emotions, psychological influences, and digital engagement would provide deeper insights into how social marketing shapes consumer behaviour in the context of poverty alleviation. conclusion and future implications this study rigorously analyses the role of social marketing strategies in fostering consumer engagement for poverty alleviation in iraq. using a structured research approach and a random sampling method enhances its representativeness. the findings demonstrate how effective social marketing designs encourage consumer participation in poverty relief projects, increase awareness, and drive behavioural change. the research highlights the influence of age, education, and income on responses to social marketing efforts, with consumer engagement acting as a mediator to translate marketing impact into tangible economic outcomes. advanced statistical methods, including cmb verification, efa, and cfa, ensure data accuracy and reliability. the study offers actionable insights for policymakers, social marketers, and development practitioners, emphasising the alignment of consumer engagement with targeted poverty alleviation measures. it suggests that future research adopt longitudinal approaches to assess long-term impacts and incorporate qualitative methods to explore consumer motivations. by establishing social marketing as a powerful tool for poverty reduction, the study underscores the importance of strategic, data-driven interventions that empower communities and promote sustainable development. the findings advocate for continued investment in consumer-centred social marketing strategies, supported by cross-sector collaboration, to advance poverty reduction in developing economies like iraq. references ahmed, m. d., abd alwahab, m. a. a., ali, m. h., zainalabideen, a.-h., abd alhasan, s. 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hengyi hu* phd student, school of management, universiti sains malaysia, penang, malaysia,11800 orcid id: https://orcid.org/0009-0006-6468-2495 email: huhengyi1992@student.usm.my tajul ariffin masron assistant professor, school of management, universiti sains malaysia, penang, malaysia, 11800 orcid id: https://orcid.org/0000-0002-8564-2402 email: tams@usm.my introduction these days, countries are increasingly recognising the need for economic growth and green investment in response to significant environmental degradation. this aspect requires recent studies and policymakers' attention. this paper examines the effects of agricultural biotechnology on green investment and economic growth in china, specifically within the framework of the regional comprehensive economic partnership (rcep). the study collected secondary data on china from 2003 to 2022 from the world development indicators (wdi). the study examines the relationship between agricultural biotechnology, green investment, and economic growth using an autoregressive distributed lag model (ardl). it then conducts empirical analysis and verification to support its findings. the findings suggest a strong correlation between agricultural biotechnology, green investment, and economic growth in china. the study assists policymakers in formulating policies that promote green investment and economic growth by utilizing efficient agricultural biotechnology. keywords: agricultural biotechnology, green investment, rcep, economic growth. currently, thanks to advancements in statistics and communication technologies, the digital service industry is currently driving the progress of global trade in a novel manner. in addition to their efficiency in facilitating trade, e-commerce platforms also contribute to reducing transaction costs. however, the rise of digital service trade is slowly challenging the existing global labour division and distribution of benefits. simultaneously, countries have begun to showcase variations in cooperation rules, content, and forms of digital service trade due to disparities in the comparative advantages of the digital economy. regional integration has emerged as a crucial aspect of the current digital marketing landscape, highlighting the profound new features of economic globalisation (zhang, shao, han, & chang, 2022). the emergence of digital service trade is revolutionising the creation of global value, serving as a catalyst for the growth of global trade, and expediting the transformation of international trade patterns. according to the ministry of commerce's white paper on digital trade development, there was a significant increase in international digital carrier exchange export quantity in 2019, reaching a staggering 3,192.59 billion us dollars. this growth significantly exceeded the surge in trade in goods (zhang & lis, 2020). with a diverse population of 2.3 billion, a gdp of 23 trillion us dollars, and an additional value of 10.4 trillion us dollars, rcep member countries form the world's largest free trade community. they have a significant influence and potential for improving quality (koondhar et al., 2021). the signing of the rcep will enhance the monetary integration system in the asia-pacific region, establish a digital alternative financial network, and collectively address the downward pressure on the global economy. the total exports of digital service trade among rcep member states in 2019 amounted to 511.52 billion us dollars, showing a year-on-year growth rate of nearly 8%, surpassing the global average (chen, shuai, zhang, & wu, 2020). the global competitiveness of digital providers is constantly improving. however, there is still a significant disparity compared to developed nations. the e-commerce chapter of the rcep agreement includes provisions for cross-border ecommerce, restrictions on laptop computer localization, and economic services. these provisions aim to promote industrial development and protect the sovereignty of developing countries (zhu & huo, 2022). in recent years, the three major advancements in agriculture have provided significant momentum for our nation's agricultural progress. china's agricultural technological innovation has experienced a decline in its role in the financial growth of the farming sector (liu, zhu, & wang, 2021). due to its poor quality, agricultural technology innovation has historically lacked effective and sustainable input mechanisms. currently, china's investment in agricultural research is significantly lower compared to other industries. the investment intensity is only 0.56% compared to 2.87% in other sectors. additionally, when compared to developed countries, china's agricultural research investment is only equivalent to 20% of what developed countries invest. however, agriculture is a demanding industry that requires a significant amount of labour and capital. it also has noticeable effects on the surrounding environment, unlike other industries. compared to other sectors, scientific research activities have a more pronounced social aspect (munawar, ul qamar, mustafa, khan, & joyia, 2020). the primary factor contributing to this situation is the difficulty in attaining exclusivity in the implementation of agricultural technology. the lack of a robust intellectual property https://orcid.org/0009-0006-6468-2495 mailto:huhengyi1992@student.usm.my https://orcid.org/0000-0002-8564-2402 mailto:tams@usm.my agbioforum, 25(3), 2023 | 61 hu & masron. — exploring the impact of agricultural biotechnology on green investment and economic growth protection system hampers investment in agricultural technology innovation. in order to foster agricultural technology innovation and drive technological progress in china, it is essential to address the shortcomings in the intellectual property protection system and the agricultural scientific research system. this calls for a collaborative effort between the government, national public scientific research units, and social enterprises and institutions to increase research and development in agricultural technology innovation. it is essential to consider how to incorporate technology into the agricultural production process, secure funding for rural technology innovation research and development, and efficiently allocate resources to enhance agricultural science and technology and agricultural productivity (fu et al., 2021). investing in green initiatives serves multiple purposes. it helps combat environmental pollution, preserves the balance of ecosystems, conserves resources, and promotes sustainable economic and social development. additionally, it aligns with the national policy of safeguarding environmental resources and fostering the harmonious growth of the economy (gatto, daniotti, & re, 2021). currently, the significance of green investment in the realm of modern investment and financing lies in its crucial contribution to the preservation of long-term interests and the sustainable development of human society. china's digital trade governance efforts will give the country a competitive edge and foster a positive external environment for the growth of its digital economy. simultaneously, it offers valuable references to bolster research and development of agricultural technology across different disciplines in our nation. this will enhance the vigour of technological innovation and facilitate the widespread adoption of agricultural technology in the coming years. the regional comprehensive economic partnership (rcep) agreement is a free-exchange settlement involving 15 countries. asean international locations initiated and led it in 2012, with participation from china, south korea, australia, japan, and new zealand. the 10 asean global places consist of indonesia, singapore, brunei, vietnam, malaysia, the philippines, thailand, cambodia, laos, and myanmar. formally established in november 2020, the rcep encompasses a population of approximately 3.5 billion individuals and boasts a combined gdp of $23 trillion. this accounts for roughly one-third of the global total and solidifies its position as the largest free trade zone in the world (khan, murshed, dong, & yang, 2021). in the field of digital exchange in services, the rcep has important objectives. firstly, it aims to strengthen political trust among the parties involved and provide new momentum in the fight against the global economic downturn. secondly, it seeks to enhance cooperation to achieve mutual recognition of digital trade regulations in the asia-pacific region and establish institutional guarantees for the movement of digital products and services in the area. thirdly, it is important to lower the cost of enhancing digital company trade within the region and establish a conducive environment for the growth of digital enterprises (bashir et al., 2022). figure 1: recp development. this paper examines the current state of agricultural biotechnology research in relation to recp. it investigates the influence of agricultural biotechnology on green investment and analyses economic data from china between 2003 and 2022. additionally, it develops a quality index for china's economic growth and explores the effects of agricultural biotechnology on the quality of economic growth. the current chapter delves into the study background, while the second chapter provides a comprehensive review of past literature. the third chapter outlines the research methodology employed, while the fourth chapter presents the findings of the study. finally, the last chapter engages in discussions regarding the results, study implications, and future directions. literature review during the past four decades of reform and opening up, china's agricultural scientific research system has experienced significant growth. the development of china's agricultural scientific research system is closely linked to the reform of its extensive framework, which can be broadly categorised into four distinct stages. the initial stage involves the process of healing and making progress. during this period, there was a significant increase in the number of agricultural scientific research institutions in china, and the number of personnel involved in agricultural scientific research grew from 22,000 in 1979 to 102,000 in 1985. next, we have the industrial aspect of agricultural research (yaqoob et al., 2023). nowadays, agricultural research departments and institutions have become more self-sufficient by engaging in incomegenerating activities, rather than relying solely on government funding. due to the intense competition in the market, there has been a decline in the number of scientific agbioforum, 25(3), 2023 | 62 hu & masron. — exploring the impact of agricultural biotechnology on green investment and economic growth researchers. nevertheless, the market-oriented mechanism has significantly enhanced the efficiency of agricultural scientific research. following 1997, there was a significant shift in rural research tools and a surge in technological advancements in the agricultural sector. at this stage, it was necessary to transform agricultural research institutions into centres focused on social welfare, scientific advancements, and technological development. the goal was to establish a modern scientific research system with a well-defined classification, efficient operations, and a flexible mechanism. the emergence of agricultural firms as the central entity of scientific research provided a strong impetus for the commercialization of agricultural research (khan, nouman, & ullah, 2023). since entering the twenty-first century, china's agricultural development has gradually shifted from labour-intensive production to the application of advanced agricultural technology in manufacturing. throughout the years, china's central report no. 1 has emphasised the need to strongly promote the advancement of agricultural science and technology. in 2007, the no. 1 central report proposed for the first time to "promote agricultural scientific and technological innovation and give a boost to the scientific and technological guide for the development of presentday agriculture." the report suggests that there is a need for significant improvement in funding for agricultural research. it also emphasises the importance of strengthening the innovation capacity of national and regional agricultural research facilities (naseem, hu, shi, mohsin, & jamil, 2023). with a focus on enhancing the innovation capability of agricultural science and technology, the no.1 central report 2010 emphasised the need to improve the popularisation capability of agricultural technological know-how and accelerate the development of farm popularisation and software systems. furthermore, it is important to prioritise teaching fundamental skills in agricultural science and technology, establish a variety of key laboratories and foundational platforms in the field of agriculture, and effectively distribute advanced manufacturing technologies to support agricultural production at the grassroots level (raihan, ibrahim, & muhtasim, 2023). in 2018, the no. 1 central file introduced the "rural revitalization strategy" which emphasised the need to focus on enhancing the manufacturing of high-end agricultural equipment and gear to modernise china's agriculture. it also advocated for the adoption of "digital agriculture" to promote the application of internet of things technology in the agricultural sector (raihan, 2023). china currently promotes the establishment of contemporary agricultural industrial parks to facilitate agricultural modernization. the establishment of modern agricultural industrial parks is seen as a crucial step in addressing the imbalance and inadequacy in china's rural development. it serves as a key initiative in effectively addressing the needs of the "three rural areas" in the new era, starting from the national to local government levels. the sichuan provincial authorities have put forward a plan to build over 1,000 demonstration parks for agricultural enterprise integration at various levels within the province by 2022. they are also actively working towards establishing several national modern agricultural industrial parks. hebei province has put forward a plan to build and enhance 36 modern agricultural parks at the provincial level (shao, 2024). green investment encompasses various aspects of environmental pollution treatment, including investment in facilities, equipment, and expenses related to environmental protection. this includes investments in sewage discharge and solid waste treatment, as well as efficient resource development and economic utilization. such investments involve measures such as energy saving, material saving, water saving, and land saving (li et al., 2023b). green investment refers to promoting increased investment in environmentally friendly initiatives. the deduction will be made from the total amount of existing social investment, specifically targeting ineffective or negative investment that is not "green," as well as investment that is not beneficial or even detrimental to human survival and development. green investment is a type of investment that reflects people-oriented and sustainable economic and social development, as well as the scientific concept of development. the concept of the "green vote" refers to the voting behaviour and preferences of individuals who prioritise environmental issues. a higher proportion of "capital" in total social investment leads to increased effective and beneficial investment, resulting in greater contributions to human social development and healthy economic growth (fang, 2023). the term "green" refers to the consideration of environmental pollution control, ecological protection, and the promotion of sustainable economic and social development in investment and financing behaviour. it plays a guiding role in the management of social and economic resources. green investment stands out from traditional investment and financing due to its strong focus on the benefits of the human society's living environment. the implementation of this measure will contribute to the preservation and conservation of the environment. the effectiveness of an organization's activities is determined by how efficiently it utilises its resources. economic entities should prioritise the balance of natural ecology, minimise environmental pollution, conserve natural resources, and protect the long-term interests of human society and its development. the concept emphasises the integration of economic activities, environmental protection, and ecological balance to achieve sustainable economic and social development (lei, yang, & qin, 2023). china's agricultural technological know-how innovation has historically lagged behind industrial science innovation and urbanisation. this lag can be attributed to historical and cultural factors. in the past, the shift in agricultural employment has been slower compared to changes in the industrial structure (yang & solangi, 2024). for a long time, the proportion of china's rural output price in gdp has been lower than the percentage of the agricultural workforce in the total population, which is about 20%. additionally, the transformation of employment structure has been slower than the change in industrial structure. as a result, there is a significant amount of surplus labour idle in agricultural production. this situation has led to a lack of motivation for agbioforum, 25(2), 2023 | 63 hu & masron. — exploring the impact of agricultural biotechnology on green investment and economic growth china's scientific research institutions to carry out research and development of agricultural innovation technology. there should be a greater openness in the nation-state to adopt advanced agricultural techniques. in this scenario, the rural population was predominantly preserved, which hindered the advancement of agricultural technology (li, nanseki, chomei, & kuang, 2023a). the rapid development of agricultural technology is not only a driving force for agricultural growth, but also a crucial guarantee for advancing china's national economy. since its establishment over 70 years ago, china's agriculture has undergone a significant transformation, shifting from a reliance on valuable resources and labour to a more scientific and capital-intensive approach. over the years, china has made significant progress in the agricultural sector, transitioning from a state of scarcity to becoming a dominant player in the production of food (tang, cao, guo, & li, 2023). in recent years, china has experienced a significant increase in urbanisation. the rate of urbanisation has steadily risen, with the percentage of city residents reaching 49.7% in 2010 and 63.89% in 2020. the rapid increase in urban population has resulted in a significant decrease in the number of people living in rural areas (li et al., 2023b). in light of these circumstances, finding ways to improve agricultural manufacturing effectiveness by advancing agricultural technology and reducing the labour force has become a crucial focus for our agricultural development. however, in 2019, the contribution fee of agrarian science and science development in china reached 59.2%, indicating the impact of rural modernization on agricultural production. additionally, there was a comprehensive mechanisation fee for crop cultivation and harvest (jin, xu, zhu, & li, 2023). in 2020, the us has witnessed a remarkable increase in the contribution of agricultural scientific and technological growth. this increase has reached a new stage of 60%, which is a significant improvement compared to the 15.5% recorded in 1996. the development of agricultural science and the adoption of recent applied sciences have played a crucial role in maintaining a steady growth in grain output, despite the relatively unchanged grain sown output (raihan, 2023). research methods the paper examines the effects of agricultural biotechnology on green investment and economic growth in china, specifically within the framework of rcep. the researchers have utilised secondary sources of data collection, specifically the wdi, to extract data spanning from 2003 to 2022. the equation is given as under: 𝑄𝐸𝐺𝑡 = 𝛼0 + 𝛽1𝑈𝑆𝑇𝐼𝑡 + 𝛽2𝐸𝑈𝐴𝑡 + 𝑒𝑡 (1) 𝑈𝐼𝐴𝑡 = 𝛼0 + 𝛽1𝑈𝑆𝑇𝐼𝑡 + 𝛽2𝐸𝑈𝐴𝑡 + 𝑒𝑡 (2) where, qeg = quality of economic growth uia = urban innovation ability t = time period usti = urban science and technology importance eua = proportion of employees in urban agriculture the primary factors in the study were green investment and economic growth, which were expressed as gdp growth (annual percentage) and technology access (percentage of urban population), respectively. furthermore, agricultural biotechnology was employed as a predictor in the study, with high technology exports (as a percentage of manufactured exports) and employment in agriculture (as a percentage of total employment) being measured. table 1 displays these factors. table 1: variables. variable category variable symbol variable definition data source dependent variable qeg the quality of economic growth gdp growth (annual percentage) wdi independent variable uia urban innovation ability access of technologies (% of urban population) wdi wdi wdi usti urban science and technology importance high technology exports (% of manufactured exports) eua proportion of employees in urban agriculture employment in agriculture (% of total employment) the study presents the descriptive statistics that reveal the details of the variables, including measures such as mean, standard deviation, and minimum and maximum values. furthermore, the study also highlights the importance of conducting a unit root test as a crucial step in selecting the appropriate model. the equation for the adf tests is given below: 𝑑(𝑌𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑌𝑡−1 + 𝑑(𝑌𝑡(−1)) + ɛ𝑡 (3) the unit root among variables has been investigated individually, and the separate equations for each variable are given below: quality of economic growth 𝑑(𝑄𝐸𝐺𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑄𝐸𝐺𝑡−1 + 𝑑(𝑄𝐸𝐺𝑡(−1)) + ɛ𝑡 .(4) urban innovation ability 𝑑(uia𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶uia𝑡−1 + 𝑑(uia𝑡(−1)) + ɛ𝑡 (5) urban science and technology importance 𝑑(usti𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶usti𝑡−1 + 𝑑(usti𝑡(−1)) + ɛ𝑡 (6) proportion of employees in urban agriculture 𝑑(eua𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶eua𝑡−1 + 𝑑(eua(−1)) + ɛ𝑡 (7) finally, the ardl model was utilised to examine the relationship between variables. it is considered the best approach when certain constructs remain constant at a certain level, while others remain constant after undergoing a first difference (sharif, baris-tuzemen, uzuner, ozturk, & sinha, 2020). furthermore, the ardl model examines the relationship between constructs in both the short and long term. equations (8) and (9) contain the "short-run coefficients" represented by δ1, δ2, δ3, δ4, agbioforum, 25(3), 2023 | 64 hu & masron. — exploring the impact of agricultural biotechnology on green investment and economic growth and δ5. on the other hand, the "long-run coefficients" and the error term are denoted by φ1, φ2, φ3, φ4, φ5, and ɛ1. the ardl model equation is given as under: ∆𝑄𝐸𝐺𝑡 = 𝛼0 + ∑𝛿1∆𝑄𝐸𝐺𝑡−1 + ∑𝛿2∆𝑈𝑆𝑇𝐼𝑡−1 + ∑𝛿3∆𝐸𝑈𝐴𝑡−1 + 𝜑1𝑄𝐸𝐺𝑡−1 + 𝜑2𝑈𝑆𝑇𝐼𝑡−1 + 𝜑3𝐸𝑈𝐴𝑡−1 + ɛ1(8) ∆𝑈𝐼𝐴𝑡 = 𝛼0 + ∑𝛿1∆𝑈𝐼𝐴𝑡−1 + ∑𝛿2∆𝑈𝑆𝑇𝐼𝑡−1 + ∑𝛿3∆𝐸𝑈𝐴𝑡−1 + 𝜑1𝑈𝐼𝐴𝑡−1 + 𝜑2𝑈𝑆𝑇𝐼𝑡−1 + 𝜑3𝐸𝑈𝐴𝑡−1 + ɛ1 (9) research findings an analysis was conducted on the original data series of each variable using descriptive statistics. the descriptive statistics revealed the intricate details of the variables, including measures like the mean, standard deviation, and the range of values. the results are displayed in table 2. table 2: descriptive statistics of variables observed value minim um maximum mean standard deviation qeg 20 -4.439 3.570 -6.384 2.994 uia 20 0.004 0.082 0.026 0.024 usti 20 0.037 0.298 0.144 0.067 eua 20 0.062 0.120 0.094 0.016 considering the available economic data, there are a couple of challenges when it comes to developing a model that analyses the effects of green investment on economic growth in china. every variable is distinct based on whether it follows the sequence of i (0) or i (1). the ardl is capable of effectively addressing the aforementioned modelling issues. (1) in the case of estimating small samples, the ardl model demonstrates increased stability. moreover, when the explanatory variable is endogenous, the ardl model can also provide independent and high-quality estimates; (2) the ardl model is capable of conducting a boundary cointegration check to assess the long-term relationship between variables. unlike the eg two-step approach and jj method, the ardl model does not necessitate variables to have the same order of unified home integration. this holds true regardless of whether the variables are i (1) or i (0). the ardl model can be utilised in the ardl boundary cointegration test. consequently, this paper employs the ardl model to examine the influence of the leverage ratio on the quality of economic growth in china. the process of modelling requires three steps. the ardl model employs bound testing to assess the presence of a long-term stable relationship between variables. bound testing is applicable in three specific scenarios: when the variables are of the same order i (0) single integer, when the variables are of the same order i (1) single integer, and when the variables are of mixed type i (0) and i (1). hence, it is imperative to perform a stationarity test for each variable initially in order to assess whether they fulfil the prerequisites of the ardl boundary co-integration test. equation (2) can be used to analyse the long-term relationship between variables, if there exists a cointegration relationship between them. it is important to highlight that the coefficient estimation in equation (1) is used exclusively to determine the presence of a long-term relationship, whereas the coefficient in equation (2) is utilised to estimate the magnitude of the long-term effect. this study employs the adf and kpss tests to conduct unit root tests for each variable. the adf test method, introduced by dickey and fuller in 1979, assumes that the data generation process follows a p-order autoregressive process with unit roots. its initial assumption is that the sequence possesses a unit root. the principles of intercept, trend, intercept-free, trend-free, and no-intercept are applied during the test until the null hypothesis is rejected. eviews10 software selects the optimal lag time based on sic criteria. the kpss test, proposed by kwiatkowski in 1992, distinguishes between two types of errors in hypothesis testing: α errors (rejecting true hypotheses) and β errors (accepting false hypotheses). when the sample size is small, greater emphasis is placed on rejecting the null hypothesis rather than accepting an incorrect null hypothesis. this paper employs the kpss test method in addition to the adf test method to enhance and strengthen the results. this approach ensures a more comprehensive and persuasive analysis. the results of the adf and kpss tests in table 3 indicate that all variables are either i(0) or i(1) sequences. there is no secondorder stationary sequence, and the variables satisfy the conditions for the ardl boundary co-integration test. table 3: unit root test results. variable adf adf test results kpss kpss stationarity qeg -1.928* smooth and steady 0.146 smooth and steady lguia 0.297 nonstationary 0.119 smooth and steady lgusti -2.131** smooth and steady 0.097 smooth and steady lgeua -2.267** smooth and steady 0.310 smooth and steady the null and alternative hypotheses for equation (8) aim to determine the presence of a long-term steady relationship among the four variables. the null hypothesis (h0) states that δ1, δ2, δ3, and δ4 are all equal to zero. the alternative hypothesis (h1) states that at least one of δ1, δ2, δ3, and δ4 is not equal to zero. the statistical test employed is the f statistic, which follows a non-standard asymptotic distribution. if the price of the f statistic exceeds the critical value, the null hypothesis is rejected. if the calculated f value is significantly smaller than the critical value, the null hypothesis is accepted. if the estimated f price falls within the range of the higher and lower critical values, it cannot be immediately determined and must be assessed based on the result of the unit root test. table 4 demonstrates that when the satisfactory monetary increase (qeg) is used as the dependent variable, the calculated f cost of 17.44062 exceeds the upper limits of the integral values of 10%, 5%, 2.5%, and 1%. therefore, we reject the null hypothesis that there is no co-integration relationship between variables. thus, the aforementioned conclusion is derived. there exists a long-term and stable co-integration relationship. agbioforum, 25(2), 2023 | 65 hu & masron. — exploring the impact of agricultural biotechnology on green investment and economic growth table 4: ardl boundary co-integration test results. test statistic value k f-statistic 17.44062*** 3 critical value bounds significance i（0）bound i（1）bound 10% 2.72 3.77 5% 3.23 4.35 2.50% 3.69 4.89 1% 4.29 5.61 note: ***, ** and * represent the significance level of 1%, 5% and 10% respectively the study employed the ardl approach to examine the relationship between the variables. the study found a positive correlation between agricultural biotechnology and economic growth in china. the outcomes are presented in table 5. table 5: ardl model (economic growth). variable coeffici ent standard error tstatistics pvalue c 0.683*** 0.084 8.131 0.000 qeg (-1) 1.388 *** 0.230 6 035 0.000 lgusti (-1) 0.767*** 0.141 5.439 0.000 lgeua (-1) 0.321*** 0.060 5.350 0.000 d (qeg (-1)) 0.261** 0.112 2.330 0.032 d(lgusti) 0.853*** 0.165 5.169 0.000 d (lgusti (-1)) 1.071*** 0.234 4.577 0.000 d(lgeua) 0.481*** 0.109 4.413 0.000 d (lgeua (-1)) 0.545*** 0.088 6.193 0.000 the study employed the ardl approach to examine the relationship between the variables. the study found a positive correlation between agricultural biotechnology and green investment in china. the outcomes are presented in table 6. table 6: ardl model (green investment). variable coeffici ent standard error tstatistics pvalue c 0.784*** 0.091 8.615 0.000 uia (-1) 1.765*** 0.455 3.879 0.000 lgusti (-1) 0.729** 0.314 2.321 0.029 lgeua (-1) 0.894** 0.398 2.246 0.031 d (uia (-1)) 3.158*** 0.987 3.199 0.001 d(lgusti) 0.201** 0.091 2.209 0.035 d (lgusti (-1)) 0.882*** 0.236 3.737 0.000 d(lgeua) 3.361*** 0.471 7.135 0.000 d (lgeua (-1)) 0.489*** 0.118 4.414 0.000 discussions this study examines the impact of agricultural biotechnology on green investment and economic growth by investigating two research questions and corresponding hypotheses. the first hypothesis proposes that advancements in agricultural biotechnology can stimulate increased investment in sustainable green practices in china. prior research by hesham et al. (2021) has demonstrated that agro-biotechnology, specifically genetic modification, reduces the release of harmful chemicals like fertilisers and pesticides, thereby benefiting the environment. furthermore, it is worth mentioning that biotechnology has a positive influence on the environment, which is particularly appealing to environmentally conscious investors. these investors are increasingly engaged and actively seeking investment opportunities that align with sustainable development goals (pandey, de coninck, & sagar, 2022). genetically modified crops, created through biotechnology, serve as a prime example of crops that are ideal for green investment. these crops contribute to an eco-friendlier environment by reducing soil and water pollution and promoting the overall health of ecosystems. munaweera, jayawardana, rajaratnam, and dissanayake (2022). further supports the hypothesis. their research underscores the potential of biotechnology advancements to enhance the nutritional content of crops. this has the potential to address the issue of malnutrition, particularly in developing societies, thereby adding both environmental and social value to these plants. according to aguilar, twardowski, and wohlgemuth (2019), investors who prioritise environmentalism and societal welfare often choose to invest in agricultural biotechnology. this allows them to contribute to both causes while also supporting biotechnological innovations through increased investment. investments of this nature are crucial for advancing the field, supporting important research and development, and ultimately bringing new biotechnological products to market. in addition, they play a crucial role in addressing the fundamental requirements of sustainable agriculture. this includes ensuring the availability of adequate water resources for agricultural purposes and promoting the adoption of renewable energy in agricultural operations and on the fields. the study highlights a strong feedback loop in the relationship between investment in green and agricultural biotechnology. this investment not only stimulates the development of more biotechnological innovation but also encourages additional investment. the second hypothesis explores the impact of an agricultural biotechnology invention on the overall economic growth of china. a recent study by schröder et al. (2019) highlights the positive impact of biotechnology on crop production. the research shows that optimising farming activities through the application of biotechnology leads to improved yields and increased returns for farmers. this boost in land productivity contributes to economic growth, particularly in rural areas where farming is the primary focus of activity. the study reveals that the advantages of the agricultural biotechnology industry are primarily seen in the agriculture sector. however, we also recognise a significant external benefit that is introduced by the industry when considering both production and final consumption values. essentially, when farmers' incomes rise, it has a ripple effect on the economy by creating a greater demand for goods and services. this serves as a catalyst for economic growth, providing an immediate and effective stimulus (ibn-mohammed et al., 2021). the ability to export also contributes to the overall economic growth of a nation by enhancing trade balances and generating foreign exchange revenues. this is particularly evident in the case of biotechnologically advanced crops, as highlighted by mustafa and iqbal (2021). investing in agricultural biotechnology can offer countries the advantage of becoming exporters of high-quality, nutrient-rich crops agbioforum, 25(3), 2023 | 66 hu & masron. — exploring the impact of agricultural biotechnology on green investment and economic growth that have a competitive edge in the market. this could potentially lead to an influx of foreign capital, which has the potential to boost the economic growth of many countries. as a result, there may be an increase in investment in both agricultural and non-agricultural sectors. furthermore, past research conducted by lu, xie, and yao (2019) has demonstrated that improvements in labour and capital efficiency within the agricultural sector can have positive effects on growth, employment, and output diversification in other sectors. however, while the study acknowledges certain advantages of agricultural biotechnology, it also highlights a number of disadvantages of this technology. for this reason, we must also take into account the potential negative impacts of biotechnological development on both large agri-business organisations and smallholder farmers. these challenges can be exacerbated by the advancements in biotechnology. small-scale farmers depend on temporary workers and may not have the necessary funds to invest in biotechnological tools and knowledge. this could widen the gap between different players in the agriculture industry. in order to address these disparities, it is crucial to prioritise the equitable distribution of biotechnological innovations. implications of the study the practical significance of the current study is evident as it encompasses a wide range of issues, such as policymaking, investment, and farming worldwide. therefore, policymakers can use this information to develop appropriate regulatory policies that would allow smallholder farmers to benefit from this biotechnological advancement and provide them with the necessary education to navigate it. it can greatly contribute to reducing or at least not exacerbating the current disparities in income distribution in agricultural trade. for investors, it highlights the potential of agricultural biotechnology as a valuable investment. it emphasises that the return on investment in this field will be significant in the future, making it a worthwhile and environmentally sustainable choice for further investment. it raises the question of the ethical procedures that have been implemented and briefly discusses genetically modified organisms and the need to address the public's misunderstandings and fears, in order to promote a more ethical approach. the study guides policymakers in making policies related to enhancing green investment and economic growth through the use of effective agricultural biotechnology. limitations when considering the conclusion, it is important to acknowledge certain limitations that were identified in the study. the analysis primarily relies on the current impact of prevailing biotechnological technologies, potentially overlooking the long-term consequences of genetically modified organisms (gmos) on both the environment and human health. this limitation may arise from the geographical coverage of the study, as the benefits and drawbacks of agricultural biotechnology can vary significantly in various countries or farming contexts. in addition, although it emphasises the economic advantages for these smallholder farmers, it may not fully address all the challenges these farmers encounter when adopting biotechnological tools and knowledge. lastly, the ethical concerns and societal implications of gmos are complex and ever-changing, and the study may not have been able to fully address and incorporate all the perspectives and solutions from around the world. 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(2022). the impact of agricultural production efficiency on agricultural carbon emissions in china. energies, 15(12), 4464. doi: https://doi.org/10.3390/en15124464 https://doi.org/10.1007/s11356-021-18471-6 https://doi.org/10.3390/su12041368 https://doi.org/10.3390/en15124464 agbioforum, 26(2): 159-167. ©2024 agbioforum mishra et al — exploring the impact of marital status and workplace environment on mental health among employees… exploring the impact of marital status and workplace environment on mental health among employees in service-based industries richa mishra* school of management, bml munjal university, gurugram, haryana, india. orcid id: https://orcid.org/0009-0008-5681-1482 email: richa.mishra@bmu.edu.in hala alsabatin college of education, zarqa university, zarqa, jordan. orcid id: https://orcid.org/0009-0002-9779-1007 email: halsabatin@zu.edu.jo shweta upamanyu corporate learning & development manager, bluedove hospitality pvt. ltd., bengaluru, karnataka, india. orcid id: https://orcid.org/0000-0003-2727-0273 email: s.upamanyu@gmail.com jolly masih school of management, bml munjal university, gurugram, haryana, india. orcid id: https://orcid.org/0000-0002-8420-1517 email: jolly.masih@bmu.edu.in azzam hannoon school of business, skyline university college, university city sharjahuae. orcid id: https://orcid.org/0000-0003-0468-7797 email: azzam.hannoon@skylineuniversity.ac.ae sherine badawi faculty of economics and international trade, egyptian chinese university. orcid id: https://orcid.org/0000-0001-5900-6288 email: sherinebadawy@yahoo.com sameh reyad faculty of business administration department of finance, banking and accounting, german international university (giu), egypt. orcid id: https://orcid.org/0000-0002-3099-0741 email: sameh.reyad@giu-uni.de yussra jamjoom college of business administration, university of business and technology, jeddah, 21448, saudi arabia. orcid id: https://orcid.org/0000-0003-2600-5558 email: yussra@ubt.edu.sa this study offers a comprehensive examination of the factors contributing to the increasing prevalence of psychological issues among employees within service-based industries, providing a nuanced understanding of this pressing concern. the research aims to clarify the role of marital status in shaping psychological health outcomes, particularly when considering the aforementioned challenges. the findings underscore the significant influence of demanding workloads, strict deadlines, and the relentless pressures characteristic of service-oriented employment on the mental health of workers. marital status emerges as a key predictor of mental health outcomes, with employees who are married, divorced, or have children facing situations that exacerbate stress and anxiety. the results indicate that while all employees in the service sector are susceptible to mental health difficulties, those with additional familial responsibilities—such as those who are married or have children—are particularly vulnerable. keywords: mental health issues, employees, workplace, servicebased industries, marital status, occupational stress, employee well-being. introduction recently, the discourse surrounding mental health in the workplace has gained considerable attention, shedding light on the multifaceted challenges faced by individuals across various sectors—particularly within serviceoriented industries that emphasise efficiency, productivity, and customer satisfaction. this study aims to explore the factors contributing to the increasing prevalence of mental health issues among employees in service industries, providing a comprehensive understanding of the complexities of this pressing issue by examining the conditions that impact psychological well-being in the work environment. the subject of mental health in the workplace has attracted significant interest due to its profound effect on individual welfare, productivity, and organisational performance. psychological disorders such as stress, anxiety, depression, and burnout not only affect individuals but also influence the overall functioning of businesses, potentially resulting in reduced productivity, higher absenteeism, and diminished morale. as noted by wang et al. (2022), "marital status, often overlooked, plays a critical role in shaping the mental health of employees in service-based industries. understanding this connection is essential for creating workplaces that not only foster productivity but also nurture well-being." the primary factors contributing to the increasing prevalence of mental health issues among individuals in https://orcid.org/0009-0008-5681-1482 mailto:richa.mishra@bmu.edu.in https://orcid.org/0009-0002-9779-1007 mailto:halsabatin@zu.edu.jo https://orcid.org/0000-0003-2727-0273 mailto:s.upamanyu@gmail.com https://orcid.org/0000-0002-8420-1517 mailto:jolly.masih@bmu.edu.in mailto:azzam.hannoon@skylineuniversity.ac.ae mailto:sherinebadawy@yahoo.com https://orcid.org/0000-0002-3099-0741 mailto:sameh.reyad@giu-uni.de https://orcid.org/0000-0003-2600-5558 mailto:yussra@ubt.edu.sa agbioforum, 26(2), 2024 | 160 mishra et al — exploring the impact of marital status and workplace environment on mental health among employees… service-based sectors are excessive workloads and heightened levels of pressure. employees within these industries frequently face significant time constraints, stringent deadlines, and a relentless influx of customer demands. for married workers, the challenge of balancing dual responsibilities—professional duties and domestic obligations—can result in either emotional stability or heightened stress, contingent upon the presence or absence of interpersonal conflicts (womack & jones, 2005). divorced or separated employees, on the other hand, experience unique emotional and financial strains, which exert a considerable impact on their psychological wellbeing. employed parents encounter additional responsibilities and complexities in time management, leading to increased stress levels. furthermore, organisational factors exacerbate the issue, including inadequate support systems, limited access to mental health resources, and the persistent stigma associated with mental health conditions (eisenberger, malone, & presson, 2016). marital status represents a significant yet frequently overlooked social determinant that substantially influences the mental well-being of employees. individuals who lack access to robust social support networks may experience heightened levels of stress and feelings of isolation (cattani & rizza, 2024). in contrast, married employees are often required to balance dual responsibilities encompassing both their personal and professional lives. this dual role may either facilitate the resolution of familial matters or, conversely, exacerbate existing anxieties. additionally, divorce or separation from a spouse can have profound detrimental effects on an employee’s emotional stability, further underscoring the critical role of marital status in shaping mental health outcomes. a 2022 study conducted by the national institute of mental health and neuro-sciences (nimhans) in bengaluru explored the relationship between marital status and mental health challenges among information technology (it) professionals, revealing a significant correlation. the study, which included a sample of 500 employees, found that unmarried individuals experienced higher levels of anxiety and stress, primarily due to the lack of a supportive domestic environment and concerns regarding job security. in contrast, married employees faced stress arising from the dual demands of managing both work and family responsibilities. however, they reported improved mental well-being when receiving adequate support from their spouses. these findings highlight the need for tailored mental health interventions that address the distinct pressures associated with varying marital statuses, thereby fostering the overall well-being of employees (salahat et al, 2023; anand, 2024). individuals with children are more susceptible to stress due to the heightened demands of balancing professional responsibilities and domestic duties, often leading to fatigue exacerbated by a lack of empathy and the burden of emotional labour. employees in service-based sectors frequently engage in "emotional labour," which involves the regulation and outward expression of emotions (grundström et al., 2021). this can be particularly mentally taxing, as it requires maintaining composure in challenging situations or demonstrating empathy towards clients. additionally, these individuals often face unstable employment conditions and precarious work arrangements. concerns over job security and unpredictable schedules are prevalent among workers in service-oriented industries, contributing to elevated levels of anxiety and stress. sectors such as customer service and hospitality are characterised by a high prevalence of contract work, zero-hour contracts, and the growing influence of the "gig economy." these factors foster uncertainty among workers regarding job stability, fringe benefits, and financial security (ozduran et al., 2023; al-sartawi et al. 2024). the study aims to explore the interplay between these factors and marital status to achieve a comprehensive understanding of how different marital statuses influence the mental wellbeing of individuals employed in service-based industries. through an extensive review of contemporary literature and systematic data collection, the research seeks to identify the primary stressors prevalent within these sectors. additionally, the study endeavours to elucidate the impact of marital status on psychological health outcomes when considered alongside these stressors. by doing so, it aspires to provide employers with valuable insights into enhancing employee well-being and satisfaction, as well as fostering a supportive work environment that addresses their diverse needs. the identification of these relationships is intended to assist organisations and policymakers in designing tailored support systems capable of effectively addressing mental health challenges and promoting a healthier, more inclusive workplace. furthermore, the study contributes to the broader discourse on the relationship between marital status and mental well-being in service-oriented sectors. it also seeks to inform researchers in developing targeted interventions aimed at improving workplace conditions and advancing the overall well-being of employees. literature review this section of the study includes assessments of related previous studies that have been carried out to help comprehend the current state of the topic. for clarity, the section has been split into three categories. marital status and the prevalence of mental health issues among employees torres, backstrom, & duffy (2023) examined the factors associated with mental health burdens in two distinct groups of workers. the first group consisted of individuals employed in critical sectors who remained active during the pandemic, including healthcare, military, commerce, finance, and media. the second group comprised workers significantly impacted by protective measures, either operating under altered work arrangements or unable to work at all. sopa et al. (2020) found that workers who perceive support from their employers—whether in the form of rewards, favourable working conditions, or encouragement from superiors—are more likely to remain employed with the organisation (ahmedani, 2011). similarly, sumarsi & rizal (2021) observed that employees tend to exhibit greater dedication when they perceive that the organisation aligns with their standards, desires, and expectations. in this context, chiu, wai‐mei luk, & li‐ping tang (2002) identified that when workers agbioforum, 26(2), 2024 | 161 mishra et al — exploring the impact of marital status and workplace environment on mental health among employees… are able to operate comfortably and conveniently within the organisation, their commitment to staying is strengthened, and they experience a sense of alignment with the organisation's core values. factors specific to workplace stressors on the mental health of employees with different marital statuses vaingankar et al. (2020) examined the specific factors related to workplace stress and their impact on the mental health of employees with varying marital statuses. the study explored the links between married life and psychological disorders, considering the potential influence of social support, trust, and financial constraints. similarly, hossain et al. (2021) found that employees who were single, divorced, or widowed were significantly more likely to experience poor mental health compared to those who were married or living with a partner. these higher odds ratios remained consistent across studies, with trust and financial difficulties only slightly weakening the associations. a further study by bayrakçeken, alkan, & abar (2023) emphasized that mental health can be defined as the ability to maintain positive and balanced relationships, adapt to personal and social environments, and effectively resolve conflicts and personal aspirations in a rational, fair, and appropriate manner. according to sopa et al. (2020), the marital history of working women significantly influenced their mental well-being. the complex stress experienced by married working women, who juggle responsibilities in multiple areas, may contribute to their diminished mental health (abadi, dirani, & rezaei, 2022). optimal allocation of counselling time and regular meditation were identified as effective strategies for enhancing mental well-being. finally, parker & jorritsma (2021) noted the widespread presence of significant psychological distress across all categories of employees, a concern that is often unaddressed. identifying risk factors should guide the development of behavioural health interventions, prevention, and assessment initiatives. factors contributing to the correlation between married and unmarried employees according to hämmig, gutzwiller, & bauer (2009), married women, in particular, exhibited a degree of atypical deviation in both types of aberrant activities. for women, the dissolution of marriage was more strongly linked to indicators of sadness, while men were more prone to displaying unhealthy drinking habits and behavioural issues. in contrast, the transition from "unmarried" to "married" marital status did not appear to have a significant association with the respondents' mental health. abas et al. (2024) suggested that these differences may be attributed to the emotional and socialisation experiences of men and women, which make individuals more susceptible to responding to stress throughout their lives. further research has shown that married individuals are less likely to engage in criminal activities (baek et al., 2024) and are less vulnerable to aberrant behaviour (rony, md. numan, & alamgir, 2023) compared to their unmarried counterparts. vorina, simonič, & vlasova (2017) also reported notable differences in the prevalence of depression, anxiety, and stress between married and unmarried employees. objectives of the study onj.1: to identify the primary factors contributing to the increasing prevalence of mental health issues among employees in service-oriented industries. h1: there are multiple underlying factors that significantly contribute to mental health issues among employees in service-based industries. obj.2: to investigate the relationship between marital status and mental health challenges among employees in service-oriented industries. h2: marital status is significantly associated with the prevalence of mental health issues among employees in service-based industries. obj.3: to examine the influence of the workplace environment on the mental health of employees with varying marital statuses. h3: the impact of workplace environment on mental health varies significantly across different marital statuses. research methodology data collection: the study incorporated multiple sources of knowledge to assess the relationship dynamics and psychological health at three distinct stages of the lifespan. furthermore, the research sought to explore the timing at which relationship status influenced these associations. primary data was collected using a structured questionnaire, with participants selected through stratified random sampling from two categories: unmarried and married. study area: the delhi national capital region was selected as the study area due to its diverse and dense service industry, a wide range of socioeconomic backgrounds, and distinct urban stressors that influence employee mental health. targeted population: since the targeted population is undefined, the sample size was calculated to be 385 using cochran's formula. accordingly, a total of 385 questionnaires were distributed to employees from various professional organisations using the offline method, with 270 employees responding. data from 200 respondents who completed the questionnaire in full were considered for analysis. research technique: a mixed methods approach was employed to provide a comprehensive understanding of mental health issues by integrating quantitative data on prevalence and correlations with qualitative insights into personal experiences and contextual factors. data extraction: the data were analysed using spss 26 and excel software. spss facilitated advanced statistical analysis and detailed data modelling, while excel provided essential tools for data organisation and basic calculations, making the two programs complementary for efficient and accurate data processing. the study utilised a structured questionnaire and employed stratified random sampling to select participants from two categories: unmarried and married. study technique: the study utilised mean, standard deviation, analysis of variance (anova), correlation, agbioforum, 26(2), 2024 | 162 mishra et al — exploring the impact of marital status and workplace environment on mental health among employees… and the t-test to test the study’s hypotheses. a pilot study was conducted to ensure the reliability and accuracy of the questionnaire, with a sample size of 50 questionnaires selected to further validate these aspects. results this section presents the findings and interpretation of the data, structured according to the demographic characteristics, objectives, and hypotheses outlined in the study. the outcomes have been categorised to align with the research aims and hypotheses. a detailed table 1 summarising the results has been included, accompanied by an explanatory analysis of these findings. this approach ensures a clear and systematic presentation of the data, facilitating a comprehensive understanding of how the results relate to the study's objectives and hypotheses. table 1: reliability and validity statistics. reliability statistics label cronbach's alpha number of items kaiser–meyer–olkin and bartlett’s value significance value workload and job stress 0.818 3 0.716 0.000 work–life balance 0.777 3 0.700 0.000 organizational culture and support 0.721 4 0.727 0.000 mental health issues 0.813 10 0.779 0.000 workplace environment 0.745 10 0.740 0.000 table 1 presents the reliability statistics for various variables. the "cronbach's alpha" values range from 0.721 to 0.818, indicating the reliability of the questionnaire, as all values exceed 0.700. the items range from 3 under "workload and job stress" and "work-life balance" to 4 under "organizational culture and support," and 10 under both "mental health issues" and "workplace environment." the kaiser–meyer–olkin (kmo) values confirm the validity of the questionnaire, as all values are greater than 0.700, suggesting that the data are suitable for factor analysis. all significance values are 0.000, indicating that the results are statistically significant. independent reliability and validity testing were conducted for each factor (e.g., workload and job stress, work-life balance, organizational culture and support) to ensure the distinctiveness and internal consistency of each construct. this approach was considered appropriate, as the factors represent conceptually distinct dimensions of the overall framework under analysis. table 2: the respondents' demographic profile. sr. no. demographic characteristics category n % 1 gender female 98 49.0% male 102 51.0% 2 age 18–25 years 60 30.0% 26–35 years 70 35.0% 36–45 years 40 20.0% 46–55 years 20 10.0% ≥56 years 10 5.0% 3 marital status married 110 55.0% unmarried 90 45.0% 4 employment type contractual 30 15.0% full-time 120 60.0% part-time 30 15.0% temporary 20 10.0% 5 job role administrative 30 15.0% managerial 50 25.0% supervisory 40 20.0% support 20 10.0% technical 60 30.0% 6 years of experience <1 year 20 10.0% 1–3 years 60 30.0% 4–6 years 50 25.0% 7–10 years 40 20.0% >10 years 30 15.0% table 2 presents the "demographic characteristics of the respondents," detailing their gender, age, marital status, employment type, job role, and years of experience. as shown in the table, 49.0% of the respondents were female, and 51.0% were male. the largest group of respondents (35.0%) were aged between 26 and 35 years. a majority of the respondents (55.0%) were married. regarding employment type, 60% of respondents were full-time employees, and 25.0% held managerial positions. additionally, the table indicates that the majority of respondents (30.0%) had 1 to 3 years of experience in the corporate field. o1: to identify the primary factors contributing to the increasing prevalence of mental health issues among employees in service-oriented industries. h1: there are multiple underlying factors that significantly contribute to mental health issues among employees in service-based industries. table 3 presents the results of the kmo and bartlett's test. the kmo measure of sampling adequacy is 0.701, and agbioforum, 26(2), 2024 | 163 mishra et al — exploring the impact of marital status and workplace environment on mental health among employees… bartlett's test of sphericity yielded a significant result, with an approximate chi-squared value of 283.187, degrees of freedom = 45, and a p-value of 0.000. these results from the kmo and bartlett's test confirm the suitability of the data for factor analysis in testing the hypothesis. moreover, table 4 presents the commonalities for various items. items such as wjs_1 (0.512), wjs_2 (0.597), wlb_1 (0.516), wlb_2 (0.677), wlb_3 (0.524), ocs_2 (0.677), and ocs_3 (0.535) exhibit medium commonalities, indicating reasonably strong correlations with the factors, although a significant portion of the variance remains unexplained. conversely, items such as wjs_3 (0.351), ocs_1 (0.434), and ocs_4 (0.488) display lower commonalities, suggesting that less of their variance is accounted for by the factors. the lower representation of these items may require further review for potential modification or removal to improve the validity and reliability of the hypothesis. table 3: kaiser–meyer–olkin (kmo) and bartlett’s test. kmo and bartlett's test kmo measure of sampling adequacy 0.701 bartlett's test of sphericity approximate chi-squared 283.187 degree of freedom 45 significance 0.000 table 4: commonalities. commonalities initial extraction wjs_1 1.000 0.512 wjs_2 1.000 0.597 wjs_3 1.000 0.351 wlb_1 1.000 0.516 wlb_2 1.000 0.677 wlb_3 1.000 0.524 ocs_1 1.000 0.434 ocs_2 1.000 0.677 ocs_3 1.000 0.535 ocs_4 1.000 0.488 extraction method: principal component analysis table 5, showing the total variances, reveals that a significant proportion of the variance is explained by the first three components. the initial eigenvalues indicate that component 1 explains 26.577%, component 2 accounts for 14.602%, and component 3 contributes 11.940%, collectively explaining 53.118% of the total variance. after these three components, there is a marked decline in the variance explained by subsequent components. from the fourth component onward, their contribution diminishes, with the fourth explaining 8.865% and the cumulative percentage reaching 61.983%. this suggests that the first three components are crucial in capturing the main patterns in the data, and justifies their use in further analysis, as they effectively account for the majority of the variance. table 5: total variance. total variance explained component initial eigenvalues extraction sums of squared loadings rotation sums of squared loadings total % of variance cumulative % total % of variance cumulative % total % of variance cumulative % 1 2.658 26.577 26.577 2.658 26.577 26.577 2.223 22.226 22.226 2 1.460 14.602 41.178 1.460 14.602 41.178 1.571 15.714 37.939 3 1.194 11.940 53.118 1.194 11.940 53.118 1.518 15.179 53.118 4 0.887 8.865 61.983 5 0.787 7.871 69.854 6 0.748 7.481 77.336 7 0.722 7.219 84.555 8 0.556 5.562 90.118 9 0.553 5.533 95.651 10 0.435 4.349 100.000 extraction method: principal component analysis table 6: rotated component matrix. rotated component matrixa component 1 2 3 wjs_1 0.692 wjs_2 0.721 wjs_3 0.500 wlb_1 0.694 wlb_2 0.822 wlb_3 0.713 ocs_1 0.626 ocs_2 0.811 ocs_3 0.532 ocs_4 0.603 extraction method: principal component analysis rotation method: varimax with kaiser normalization a. rotation converged in four iterations the first component, "workload and job stress," is strongly defined by wjs_1 (0.692) and wjs_2 (0.721), with wjs_3 (0.500) contributing to a lesser degree. the second component, "work-life balance," is primarily defined by wlb_1 (0.694) and wlb_2 (0.822), though wlb_3 (0.713) cross-loads on component 1. the third component, "organizational culture and support," is characterised by ocs_1 (0.626), ocs_2 (0.811), and ocs_3 (0.532), with ocs_4 (0.603) cross-loading on component 1. the crossloadings of wlb_3 and ocs_4 suggest redundancy across components. it is recommended to exclude these variables for a clearer factor structure. overall, the matrix indicates that while the three factors are distinct, further refinement is needed for a more accurate model. o2: to investigate the relationship between marital status agbioforum, 26(2), 2024 | 164 mishra et al — exploring the impact of marital status and workplace environment on mental health among employees… and mental health challenges among employees in serviceoriented industries. h2: marital status is significantly associated with the prevalence of mental health issues among employees in service-based industries. table 7 presents the distribution and variability of mental health issues among vulnerable populations, stratified by marital status. the mean rating for unmarried individuals is 34.99 (sd = 6.43), while for married individuals, the mean rating is 32.93 (sd = 6.66). moreover, table 8 reveals a significant difference between the two groups of vulnerable populations. the mean of the variable is significantly lower in one group compared to the other, with a 95% confidence interval. the significance value for vulnerable populations is 0.028, which is below the 0.05 threshold. table 7: group statistics table. group statistics marital status n mean standard deviation standard error mean mental health issues unmarried 90 34.9889 6.43288 0.67808 married 110 32.9273 6.65770 0.63479 table 8: independent samples test. independent samples test levene's test for equality of variances t-test for equality of means f significance t degree of freedom significance (2-tailed) mean difference standard error difference 95% confidence interval of the difference lower upper mental health issues equal variances assumed 0.088 0.767 2.212 198 0.028 2.06162 0.93206 0.22359 3.89965 equal variances not assumed 2.220 192.580 0.028 2.06162 0.92884 0.22960 3.89363 o3: to examine the influence of the workplace environment on the mental health of employees with varying marital statuses. h3: the impact of workplace environment on mental health varies significantly across different marital statuses. table 9 presents the descriptive statistics for married and unmarried employees. the mean score for married employees is 32.93 (sd = 6.66), while for unmarried employees, the mean score is 34.99 (sd = 6.43). moreover, table 10 demonstrates that both the workplace environment (f = 35.905, p = 0.000) and marital status (f = 13.448, p = 0.000) significantly affect mental health issues. the model explains approximately 17.5% of the variation in mental health issues (r² = 0.175). furthermore, table 11 highlights a statistically significant positive effect of the workplace environment, leading to a slight decrease in mental health issues (p = 0.000). unmarried employees experience significantly more mental health issues than married employees, with a negative difference (p = 0.000), suggesting that marital status moderates the mental health impact of the workplace environment. table 9: descriptive statistics. descriptive statistics dependent variable: mental health issues marital status mean standard deviation n married 32.9273 6.65770 110 unmarried 34.9889 6.43288 90 total 33.8550 6.62142 200 table 10: tests of between-subjects effects. tests of between-subjects effects dependent variable: mental health issues source type iii sum of squares degree of freedom mean square f significance corrected model 1,522.992a 2 761.496 20.830 0.000 intercept 4,084.361 1 4,084.361 111.725 0.000 workplace environment 1,312.604 1 1,312.604 35.905 0.000 marital status 491.614 1 491.614 13.448 0.000 error 7,201.803 197 36.557 total 237,957.000 200 corrected total 8,724.795 199 a. r2 = 0.175 (adjusted r2 = 0.166) agbioforum, 26(2), 2024 | 165 mishra et al — exploring the impact of marital status and workplace environment on mental health among employees… table 11: parameter estimates. parameter estimates dependent variable: mental health issues parameter b standard error t significance 95% confidence interval lower bound upper bound intercept 23.461 2.027 11.576 0.000 19.464 27.458 workplace environment 0.354 0.059 5.992 0.000 0.237 0.470 [marital status1_a = 1.00] −3.232 0.881 −3.667 0.000 −4.970 −1.494 [marital status1_a = 2.00] 0a . . . . . a. this parameter is set to zero because it is redundant. discussion this study contributes to the expanding body of literature examining the development of mental health issues among employees in service-based industries, with a specific focus on the relationship between these issues and marital status. the findings provide valuable insights into the interplay between workplace demands, marital status, and mental health outcomes. in this regard, several key factors have been identified as significant contributors to the emergence of psychological disorders among workers in service-based sectors. high job demands, work-related stress, poor work-life balance, and insufficient organisational support emerged as primary drivers of mental health challenges (musleh alsartawi et al., 2022). the robustness of these findings is supported by statistical measures of reliability and validity; the cronbach’s alpha values ranged from 0.721 to 0.818, indicating that the instruments utilised in the study were highly reliable. additionally, the results of the kaiser-meyer-olkin (kmo) and bartlett’s tests confirmed the suitability of the data for factor analysis, further validating the study’s conclusions. the study highlights that high workload and pressure are significant stressors, which are inherently characteristic of service-based industries. employees in these sectors are consistently subjected to intense time pressures and stringent deadlines, which frequently contribute to elevated levels of stress and anxiety. furthermore, the research underscores the critical role of organisational culture and support—or the lack thereof—in either mitigating or exacerbating mental health challenges. the findings align with existing literature, which suggests that employees who perceive a lack of support from their organisations are more susceptible to mental health issues (sopa et al., 2020). this study thus reinforces the importance of fostering supportive workplace environments to address the growing mental health concerns among service-sector employees. marital status is significantly linked to mental health. married workers, often balancing dual responsibilities at home and work, experience various stressors that may impact emotional stability and contribute to mental health issues. while marriage may provide home-based support, the increased responsibilities can counteract the stressrelief benefits, particularly when work-life balance is disrupted. single employees, potentially lacking strong social support networks, are more prone to feelings of loneliness and stress. this study supports previous research, such as cattani & rizza (2024), which highlights higher stress levels among single workers due to the absence of a robust social support system. divorced or separated employees also face emotional and financial challenges, which significantly affect their mental wellbeing (atymtayeva et al., 2023 and tunsi et al. 2023). the study further establishes marital status as a crucial factor in understanding and addressing mental health issues in the workplace. the work environment's impact on mental health, moderated by marital status, was also explored. results show that a negative work environment can particularly hinder married workers' ability to balance work and family responsibilities, exacerbating stress. in contrast to previous studies in this field, the current research builds upon existing literature and introduces new perspectives on the impact of marital status on employee mental health. older studies, such as those by torres et al. (2023), focus on workplace support and organisational assistance as key factors for maintaining employee wellbeing. however, these studies generally address the broader employee population without considering the specific challenges faced by individuals of different marital statuses. hossain et al. (2021) and vaingankar et al. (2020) advanced the research by examining the interaction between marital status and workplace stress, finding that unmarried, divorced, and widowed individuals are more prone to poor mental health compared to their married counterparts. while these studies highlight useful correlations, they do not thoroughly investigate how marital status may exacerbate or mitigate mental health issues at work. similarly, abas et al. (2024) and hämmig et al. (2009) explored the impact of marital transitions on the mental health of both genders, emphasising emotional-socialisation experiences as crucial factors. while these studies identified specific agendas, they fell short of fully explaining the variations in deviant behaviours and mental health symptoms across different marital statuses in the workplace. this study builds on existing research, deepening the understanding of how marital status influences psychological well-being in the workplace. it explores the impact of marital transitions and responsibilities, providing a more comprehensive view of the factors affecting mental health disparities among employees. the findings suggest that single employees, in the absence of a strong organisational culture, may feel isolated. the study recommends that organisations give greater attention to employee well-being by considering marital status. targeted support, such as flexible working arrangements for married employees and social support networks for single employees, could mitigate the negative effects of workplace stress on mental health. agbioforum, 26(2), 2024 | 166 mishra et al — exploring the impact of marital status and workplace environment on mental health among employees… employers in service industries should establish a comprehensive mental health support system tailored to employees' marital status. this includes offering counselling services, promoting work-life balance through flexible schedules, and fostering a supportive organisational culture that reduces stigma around mental health issues. policymakers can use these findings to drive policies that promote mental health in the workplace. a policy ensuring access to mental health resources would help reduce psychological problems among workers. in summary, the study provides a detailed analysis of the factors contributing to the rise of mental health issues in service sectors, highlighting the importance of marital status in addressing these challenges. by enhancing employee well-being, companies can create a more supportive work environment, improving both mental health outcomes and organisational performance. conclusion this study offers a comprehensive examination of the factors contributing to rising mental health issues among employees in service industries, with a particular emphasis on the role of marital status. the findings highlight the significant impact of heavy workloads, tight deadlines, and constant pressures in service-based employment on employees' mental health. the study further identifies marital status as a key predictor of mental health outcomes, noting that employees who are married, divorced, or have children face compounded stress and anxiety. it suggests that while all service industry employees are susceptible to mental health challenges, those with additional familial responsibilities, such as married employees or those with children, are more vulnerable, experiencing dual stressors from both work and family demands, leading to burnout. conversely, single employees may experience strain due to insufficient social support, which contributes to feelings of loneliness. additionally, organizational factors such as poor support systems, inadequate mental health resources, and stigma exacerbate these challenges. the study advocates for more personalized interventions that account for differences in marital status and individual circumstances. it makes a significant contribution to the broader discussion on mental health in the workplace, highlighting the complex relationship between marital status and mental health outcomes in service industries. the results underscore the need for organizations to carefully consider employee wellbeing and adopt tailored support strategies that address the unique challenges faced by different demographic groups. by doing so, employers can foster a more supportive work environment that enhances employee satisfaction and boosts organisational efficiency. references abadi, m., dirani, k. m., & rezaei, f. d. 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https://doi.org/10.18576/isl/120744 https://doi.org/10.1186/s13690-020-00476-1 https://doi.org/10.1515/ethemes-2017-0014 https://doi.org/10.1515/ethemes-2017-0014 https://doi.org/10.1080/09585192.2020.1837201 https://doi.org/10.1080/09585192.2020.1837201 agbioforum, 25(1): 130-139. ©2023 agbioforum enhancing the effectiveness of insurance risk management in the agricultural, livestock, and fishery sectors in thailand thitivadee chaiyawat chulalongkorn business school, chulalongkorn university, bangkok, thailand e-mail: thitivadee@cbs.chula.ac.th samrieng mekkriengkrai school of law, sripatum university khon kaen, thailand e-mail: samrieng@yahoo.com supatra phanwichit school of law, sukhothai thammathirat open university, thailand e-mail: thailawresearch@gmail.com in recent years, heightened attention has been directed towards evaluating the efficacy of risk management strategies, specifically within the agricultural sector, particularly in regions susceptible to various risks. this heightened interest has prompted increased scrutiny from both researchers and regulatory bodies. the current investigation endeavours to scrutinize the systematic procedural framework for formulating a pertinent crop insurance program tailored to distinct agricultural zones. additionally, the study employs extreme value modelling to forecast daily maximum precipitation, facilitating the estimation of potential agricultural productivity diminution resulting from extreme precipitation events. furthermore, the research underscores the pivotal role of governmental support in fortifying the implementation of a feasible and enduring agricultural insurance framework in thailand. to amass pertinent data, the study involves stakeholders from public and private sectors in both the agricultural and agricultural insurance domains, employing methods such as questionnaire surveys, in-depth interviews, and public hearings. moreover, this investigation employs machine learning methodologies to project potential jasmine-105 rice yield losses in ubon ratchathani and sisaket provinces. the acquisition of satellite data is integral for estimating long-term daily heavy rainfall in the aforementioned provinces. the study's revelations affirm the viability of area-yield crop insurance, utilizing machine learning to gauge rice production on a provincial scale, thereby bolstering the economic feasibility and sustainability of thailand's rice industry. notably, random forests demonstrate superior accuracy, particularly within specific rice farming locales. furthermore, the research underscores the anticipated surge in heavy rainfall across thailand over the next 10-100 years, attributable to climate change, underscoring the imperative for effective catastrophe risk financing and insurance risk management strategies. in summary, the research underscores the thai government's dedication to advancing, endorsing, and implementing proficient and enduring agricultural insurance mechanisms. these mechanisms seek to incentivize farmers to safeguard their agricultural vulnerabilities through insurance products, fostering a more sustainable trajectory for the nation. the study imparts valuable insights into the critical role of insurance-based risk management in the agricultural sector, emphasizing the pivotal support required from the government for the successful implementation of such initiatives. keywords: agricultural insurance, government support, areayield, machine learning, extreme precipitation introduction acknowledging the central importance of agriculture in supporting human sustenance and catalysing worldwide economic advancement, its historical significance is duly recognized. unfortunately, agriculture continues to be vulnerable to risks associated with climatic variability. effectively handling the agricultural risks proves to be a complex task, given their varied nature that spans from isolated incidents to intricately interconnected risks. consequently, the compelling need for proficient risk management within the agricultural domain is unequivocal. this imperative has given rise to a spectrum of strategies formulated to address these complex challenges. aquaculture insurance, crop insurance, and livestock insurance are crucial instruments. they enable the transfer of formidable risks faced by farmers to insurance markets. rapidly gaining prevalence globally, these measures are potent tools for mitigating catastrophic risks, reducing vulnerabilities in agricultural practices, enhancing average productivity and income, fostering financial resilience for practitioners, and promoting social and environmental sustainability (chatterjee & oza, 2017). the agricultural sector in thailand is currently confronted with increasing vulnerabilities attributed to rising temperatures and significant environmental hazards such as floods and droughts. this demographic represents approximately 30 percent of thailand's total labour force (musikawong et al., 2022). as per the world bank (2022) report, a predominant portion of thailand's impoverished population, comprising nearly 79 percent, is affiliated with agricultural households. the recurrent and severe incidence of floods and droughts has significantly impacted this substantial demographic, thereby placing considerable pressure on the government's financial resources dedicated to disaster relief endeavours over recent decades. recognizing thailand's vulnerability to the impacts of climate change, anticipated to manifest in heightened frequency and severity of natural disasters, and mailto:thitivadee@cbs.chula.ac.th mailto:samrieng@yahoo.com mailto:thailawresearch@gmail.com agbioforum, 25(2), 2023 | 131 chaiyawat et al. — enhancing the effectiveness of insurance risk management in the agricultural, livestock, and fishery sectors in thailand acknowledging the imperative for transitioning towards an environmentally sustainable economy, the thai government deems the progression of the agricultural sector as crucial. this recognition stems from the potential implications of global climate change on household welfare, agricultural output and agricultural income. additionally, it includes the cost dynamics of production. thailand integrated its commitments articulated in the united nations 2030 agenda for sustainable development and the paris agreement within its 20-year national strategy (ministry of foreign affairs, 2022). moreover, the insurance sector strategically prioritizes sustainability, utilizing insurance systems to mitigate risks, establish security, and contribute to the realization of a sustainable future (intongpan, 2019). considering the pressing need to systematically anticipate and mitigate the significant impacts of disaster risks, climate change, and other hazards, it is crucial for the thai government to initiate the development of a comprehensive and systematic framework for risk management (chainikom, 2022). within this framework, it is crucial to prioritize appropriate agricultural insurance schemes and riskfinancing solutions to protect vulnerable communities. agricultural insurance and risk finance are essential components of thailand's integrated national financing framework (inff). the goal is to strengthen the nation's ability to withstand impending shocks and promote inclusivity, with a specific focus on alleviating poverty among thai farmers (vuthipadadorn et al., 2023). the thai government is confronted with the imperative of crafting and executing a financially robust budget capable of adeptly addressing unforeseen eventualities in the future. it is essential to prioritize the adoption of a comprehensive risk management strategy to effectively reduce and alleviate the negative effects on the thai economy. consequently, to attain widespread sustainability in the agricultural sector, this investigation concentrates on examining an appropriate rice insurance framework, specifically the area-yield agricultural insurance, in thailand. through the application of machine learning techniques, this framework seeks to forecast the loss in yield production attributed to natural disasters, thereby facilitating the calculation of indemnity payments for rice crops. moreover, the study employs extreme value modelling to anticipate daily maximum precipitation. this modelling aids in appraising the loss in agricultural productivity and underscores the imperative for proficient catastrophe management and transfer in the context of extreme precipitation events. additionally, the research seeks to proffer a proficient instantiation of the agricultural insurance system in thailand. through the efficacious integration of risk management via insurance, thailand can augment the resilience of its agricultural sector and assure the enduring sustainability of its farming communities. literature review agricultural insurance is characterized as a quasi-public good, given its integration into broader governmental agricultural development initiatives. policymakers strive to achieve their social and economic objectives by allocating resources to agricultural funding and insurance. the regulatory framework governing agricultural insurance holds crucial significance in articulating the government's intentions and aspirations in facilitating the provision of agricultural insurance. the prevalence of subsidy provision emerges as a shared characteristic in agricultural insurance endeavours across nations exhibiting diverse socioeconomic profiles (nshakirarukundo et al., 2021). the development and enforcement of legislation significantly contribute to the progress of any society. nations frequently contend with various natural and human-induced disasters, with the agricultural sector, in particular, being susceptible to their repercussions. in reaction to these disasters, countries promulgate legislation with the aim of mitigating immediate impacts and adeptly managing future ramifications. this legislative framework exerts substantial influence on the practices of risk management through insurance. numerous investigations, such as those conducted by gilissen (2015), alnabhani et al. (2016), and bang (2021), have examined the effectiveness of risk management in situations where legislation is grounded in public engagement. these investigations suggest that the application of suitable legal frameworks proficiently alleviates extant disaster risks by instituting regulations and acknowledging the engagement, responsibilities, and dedication of stakeholders. the hypothesis inferred from the aforementioned discourse is: h1: the involvement of the public sector through crucial mechanisms in thai agricultural insurance is essential for ensuring the effectiveness of insurance and risk management practices, thereby contributing to a more sustainable agricultural sector in thailand. the disbursement of financial aid to farmers impacted by natural disasters in thailand has predominantly been contingent upon the government's budgetary allocations. nevertheless, this method has given rise to noteworthy oscillations in annual financial support, as previously underscored. as a result, the thai government faces the challenge of prudently allocating fiscal resources and establishing a comprehensive strategy for managing risks within the agricultural sector (muangmee et al., 2022). in response to the aforementioned challenges, the ministry of finance has implemented a crop insurance framework. the extant framework is centred on indemnity insurance based on damage, notably referred to as named peril crop insurance (npci). this insurance coverage is designed to address specific perils including floods, droughts, windstorms, frost, hailstorms, fires, elephant attacks, and pest infestations. within the spectrum of agricultural insurance categories in thailand, rice insurance holds the foremost position in terms of the proportion of insured agricultural land. nevertheless, the present rice insurance framework is confronted with inadvertent basis risk. as per the existing protocol, indemnity payments for rice insurance are triggered upon the provincial government's declaration of the insurance area as a disaster zone. consequently, agbioforum, 25(2), 2023 | 132 chaiyawat et al. — enhancing the effectiveness of insurance risk management in the agricultural, livestock, and fishery sectors in thailand instances where rice crops sustain losses due to calamities and damage attributed to named perils are deemed total losses. however, criticism has been directed towards this calamity-based pay-out system, positing that it may engender a disconnection between the damage assessment and the actual losses incurred (sethanand et al., 2023). this incongruity casts uncertainty on the efficacy of the prevailing crop insurance arrangement, as insured farmers in impacted regions may not receive the anticipated indemnification. moreover, the rice insurance initiative based on npci in thailand confronts challenges associated with adverse selection and moral hazard. these challenges assume significance due to their potential to impede the prospective expansion of the program. in contrast, index-based crop insurance is regarded as a more pragmatic alternative to indemnity-based insurance. index-based insurance incorporates diverse factors influencing agricultural production losses, such as rainfall and yield, disbursing loss estimates when the specified index aligns with predetermined conditions (biffis & chavez, 2017). several asian nations, among them india and china, have effectively instituted programs for indexbased crop insurance (stutley, 2011). nevertheless, it is imperative to acknowledge that indexbased crop insurance might not afford complete indemnification to farmers owing to the presence of basis risk, denoting the disparity between indexed pay-outs and actual losses. despite this limitation, the basis risk associated with index-based crop insurance is notably diminished compared to provincial coverage, rendering the model particularly well-suited for dynamic weather conditions. the adoption of index-based crop insurance confers several advantages to both farmers and insurers, enhancing the cost-effectiveness of services. through an index-based approach, insurers can streamline the claims process, as it obviates the need for post-loss verification, thereby reducing administrative burdens and expediting compensation for farmers (biffis & chavez, 2017; dercon et al., 2014). area-yield index insurance represents a category of crop insurance contingent upon rainfall as the indexing parameter for indemnification assessment. the ascendancy of this insurance variant is attributed to its simplicity and the ready availability of pertinent data (yoshida et al., 2019). under area-yield crop insurance, farmers receive indemnity based on the average yield of the insured crop within a designated area, irrespective of the actual yield on their individual farms. the uniform compensation per unit area extended to all farmers within the insured region serves to diminish the prospects of moral hazard, wherein insured farmers might undertake greater risks given the security provided by insurance. additionally, it alleviates adverse selection by encompassing all farmers in the area within the insurance pool, thereby minimizing the probability of selection bias by high-risk farmers (chambers & quiggin, 2002; skees, 2008). administrative costs are further reduced by obviating the necessity for individual claim adjustments and the verification of production histories (deng et al., 2007). this enhances the cost-effectiveness of insurance for insurers (choudhury et al., 2016; miranda & farrin, 2012). as posited by nelson et al. (2014), precipitation has been established to exert a notable influence on crop productivity. among diverse crops, rice cultivation is especially vulnerable to the adverse effects of flooding (bailey-serres et al., 2012). prolonged periods of inundation and substantial flood depths have the potential to result in substantial reductions in rice production (meng et al., 2022). furthermore, the growth phase of rice, particularly during the periods preceding and succeeding the "booting stage," exerts an impact on its resilience to flooding. consequently, comprehending the reaction of rice crops to inundation is imperative for gauging the prospective implications of forthcoming floods on rice production. this comprehension is fundamental for formulating appropriate rice crop insurance schemes that motivate farmers, private insurers, and the thai government to engage in agricultural insurance initiatives, notwithstanding the inherent risks associated with weather and climate. the hypothesis inferred from the aforementioned discourse is as follows: h2: area-yield crop insurance is a suitable model for insuring rice crops in thailand, as it allows for accurate prediction of rice production yield loss resulting from floods. climate change, particularly the phenomenon of global warming, constitutes a notable factor contributing to the escalation of extreme precipitation events and widespread flooding on a global scale (tabari, 2020). this can be attributed to the direct influence of climate change on precipitation patterns and temperature, resulting in both water deficits and instances of flooding (slettebak, 2012). the agricultural sector stands out as particularly susceptible to the impacts of climate change, given its heightened sensitivity to meteorological variations, and climate change exerts a direct influence on crop yields (loi et al., 2022). due to the effects of climate change, projections indicate an anticipated rise in both the frequency and intensity of extreme weather events, including but not limited to heat waves, droughts, and heavy precipitation (zhu & fan, 2021). in developing nations, particularly within the agricultural sector, the primary burden of economic repercussions stemming from extreme weather events is borne (elahi et al., 2022). projections suggest that climate change is poised to drive millions of people into a state of extreme poverty by the year 2030 (jafino et al., 2020). the deleterious impacts of climate change on agriculture are conspicuous in the context of thai farmers, who find themselves incapable of mitigating the consequences of increasingly severe climatic conditions (felkner et al., 2009). the increase in global temperatures has been observed to influence the occurrence, severity, and duration of natural disasters, and these patterns are anticipated to persist as a consequence of climate change (portner et al., 2022). this presents a challenge, as agricultural insurance becomes unattainable for low-income smallholder farmers in thailand, amplifying their susceptibility. furthermore, in the absence of efficient catastrophe management, private insurers may face the potential threat of insolvency, particularly within a risk-sensitive capital regime. the hypothesis inferred from the aforementioned discourse is as follows: agbioforum, 25(2), 2023 | 133 chaiyawat et al. — enhancing the effectiveness of insurance risk management in the agricultural, livestock, and fishery sectors in thailand h3: the impact of climate change in thailand is evident in the increased intensity of extreme precipitation events and the heightened risk of flooding, which is further exacerbated by the correlation between increased precipitation and the rise in return levels. research methodology the objectives of this study are threefold: (1) to proffer a proficient instantiation of the agricultural insurance system in thailand to realize widespread sustainability, (2) to scrutinize the impact of rice crop area yield and forecast the level of rice production, and (3) to anticipate precipitation in the lower north-eastern provinces of ubon ratchathani and sisaket. to recommend the efficacious implementation of the agricultural insurance system in thailand, this investigation employs a purposive sampling technique to identify participants comprising regulators, experts, individuals from both public and private sectors within the agriculture and agricultural insurance domains, as well as farmers. purposive sampling, while acknowledging its limitations, is chosen deliberately to target sources rich in information concerning agricultural risk and insurance. this sampling approach is well-aligned with the goal of furnishing pertinent insights into the research's aims and objectives. a total of 40 in-depth interviews were conducted for comprehensive data collection. furthermore, 397 questionnaire surveys were distributed, resulting in 308 valid responses (response rate: approximately 77.58%), to gather supplementary data on agricultural risk, insurance experience, literacy, demand, and farmers' willingness to participate. these surveys were administered to both public and private sector interviewees. in addition, in-depth interviews and group discussions were conducted in five distinct regions of thailand. these regions include surat thani (shrimp farming), sakon nakhon (beef cattle production), saraburi (dairy cow production), ratchaburi (swine production), and phitsanulok (rice cultivation). additionally, the study employs a public hearing method to elucidate the perspectives and recommendations of stakeholders regarding the draft of agricultural insurance legislation. the initial session of public hearings transpired in bangkok, followed by a subsequent session held in khon kaen. both sessions garnered participation from over 200 experts and stakeholders. the feedback and opinions gathered during these public hearings were meticulously examined to iteratively revise, update, and ultimately refine the draft of agricultural insurance legislation prior to its formal submission to the cabinet for approval. this research further seeks to scrutinize the impact of rice crop area yield and forecast the rice production level through the utilization of machine learning techniques designed for regression tasks. specifically, three machine learning algorithms—multivariate polynomial regression, decision trees, and random forests—are deployed to predict the yield rate of the jasmine-105 rice crop. the implementation of these algorithms is executed using the python programming language. the inclusion of multivariate polynomial regression stems from its capacity to elucidate relationships among various factors influencing rice production. in line with previous research by mısır and akar (2022), the multivariate polynomial regression function is employed to formulate an equation, represented by equation (1), which encompasses three explanatory variables for each polynomial degree under consideration. 𝑌𝑝 = 𝛽0 + ∑ 𝛽𝑖1 𝑥𝑖1 3 𝑖1=1 + ∑ ∑ 𝛽𝑖1𝑖2 𝑥𝑖1 𝑥𝑖2 3 𝑖2=𝑖1 3 𝑖1=1 + ⋯ + ∑ ∑ …3 𝑖2=𝑖1 ∑ 𝛽𝑖1𝑖2…𝑖𝑛 𝑥𝑖1 𝑥𝑖2 … 𝑥𝑖𝑛 3 𝑖𝑛=𝑖𝑛−1 3 𝑖1=1 (1) where 𝑌𝑝 is production rate, 𝑥1 is flood depth, 𝑥2 is flood duration, 𝑥3 is rice state, and 𝛽0, 𝛽𝑖1 , 𝛽𝑖2 , … , 𝛽𝑖𝑛 are coefficient parameters. decision trees and random forests are prevalent non-parametric models in the domain of machine learning. belonging to the supervised learning paradigm, these algorithms acquire patterns and generate predictions using labeled training data. notably, decision trees and random forests exhibit versatility by adeptly handling both numerical and categorical data, rendering them suitable for diverse dataset structures. furthermore, their interpretability stands out as a notable advantage, given that the decisionmaking process can be readily visualized and comprehended (jensen, 2008). nevertheless, decision trees are susceptible to overfitting, whereas random forests offer a highly effective means to mitigate overfitting concerns and furnish measures of feature importance (cabras et al., 2016). k-fold cross-validation facilitates the analysis of the most appropriate algorithm for the extant dataset. this investigation employs a 10-fold cross-validation approach (k = 10). a dataset comprising 150 observations is gathered from jasmine-105 rice farming regions in the prominent rice-producing provinces of ubon ratchathani and sisaket, along with data from the office of agricultural economics under the ministry of agriculture and cooperatives. these data encompass variables detailed in table 1 for the purpose of predicting production rates. table 1. variable definitions and summary statistics variable name variable definition mean min max stdev flood depth average water height exceeds normal water level (centimeters) 170.20 60.00 400.00 76.55 flood duration time period while rice paddy encounters flood (weeks) 3.76 0.30 12.00 2.93 rice state rice plantation phase classified as “before booting = 0” and “after booting = 1” 0.59 0.00 1.00 0.49 production rate percentage of actual production to normal production 0.25 0.00 0.95 0.28 this research also endeavours to assess long-term extreme precipitation employing the conceptual framework of extreme value theory (evt) outlined by coles (2001). concretely, the peaks over the threshold (pot) methodology is employed to scrutinize the behaviour of precipitation surpassing a predefined high threshold. this approach facilitates the examination of all independent extreme data points by fitting the generalized pareto (gp) distribution. in the context of this study, the random variables 𝑋1𝑋2, … , 𝑋𝑛 are presumed to be independent and agbioforum, 25(2), 2023 | 134 chaiyawat et al. — enhancing the effectiveness of insurance risk management in the agricultural, livestock, and fishery sectors in thailand identically distributed. the distribution function of these variables is considered to exhibit a peak over the threshold when x exceeds a specified threshold value, denoted as 𝑢. mathematically, this can be expressed as 𝐹𝑢(𝑋) = 𝑃𝑟(𝑋 − 𝑢|𝑋 > 𝑢) where 𝑢 is set to a relatively high value. for estimating the conditional distribution 𝐹𝑢(𝑋), the generalized pareto distribution (gpd) is utilized. the gpd proves to be a fitting choice for extreme value analysis, especially when dealing with daily data. by isolating data points surpassing the threshold, the analysis focalizes on extreme events and their associated characteristics. if x was designated as a random variable following the gpd, it was expressed as 𝑋~gpd (𝜎, ),with 𝜎 as a scale parameter and  is the shape parameter. in the presence of a threshold, denoted as u, the cumulative distribution function (cdf) of x-u becomes conditional, meaning, 𝑥 > 𝑢, as outline in equation (2). 𝐹(𝑥 − 𝑢) = 𝐻(𝑥) = 1 − (1 + 𝑥 �̃� ) −1  (2) where 𝑥 > 0 , �̃� = σ + (𝑢 − 𝜇) and 𝜇 is the location parameter. in accordance with equation 2, the distribution fell into the same category as the gpd, here, σ ̃ represented a scale parameter corresponding to the specified value 𝑢 > 𝑢0, and �̃� = (𝑢 − 𝑢0) is the scale parameter changing with the exception of where  = 0 the scale parameter was adjusted by 𝜎∗ = σ̃ + 𝑢 . furthermore, 𝑢0 was chosen based on the minimum value of 𝑢 where the estimators for 𝜎∗and  remained constant. the probability distribution function (pdf) was then computed following the formula in equation (3). ℎ(𝑥) = 1 +  [( 𝑥−𝑢 𝜎 )] − 1  where 𝜎 > 0 and −∞ <  < ∞ (3) in the context where 𝜎 denotes a scale parameter and  denotes a shape parameter, within the generalized pareto distribution (gpd), the scenario where  → 0 is referred to as the exponential distribution. on the other hand, when  > 0 is greater than 0, it is termed as the pareto distribution, and for  < 0 less than 0, it is identified as the gamma distribution. the return level of gpd was calculated as in the following equation (4). �̂�𝑝 = 𝑢 + �̂� ̂ [(𝑇 𝑦 𝜇) ̂ − 1] where �̂� > 0 and −∞ < ̂ < ∞ (4) where �̂�𝑝 refers to return level, �̂� stands for the location parameter, �̂� represents scale parameter, ̂ signify the shape parameter, 𝑇 denotes the return period,  𝑦 correspond to the average number of days per year and 𝜇 denotes the estimated probability of the pot. data pertaining to the daily cumulative precipitation spanning the period from 2012 to 2022 is sourced from the satellite data provided by the noaa physical sciences laboratory (https://psl.noaa.gov/). research findings the research outcomes concerning the involvement of the public sector in thai agricultural insurance, aimed at enhancing the efficacy of insurance and risk management, unveil a notable deficiency in information, comprehension, awareness, and knowledge regarding agricultural insurance among thai farmers across diverse agricultural domains. this revelation is unexpected considering the exposure of these farmers to numerous natural disasters and climate change risks. additionally, a substantial proportion of farming households grapple with poverty, impeding the voluntary adoption of agricultural insurance by thai farmers and resulting in a relatively low penetration rate. moreover, the prevalent adoption of calamity-based pay-out schemes in many crop insurance products has contributed to negative perceptions, attitudes, and low levels of trust among insured farmers towards agricultural insurance. nevertheless, the study indicates that impoverished thai farmers, particularly those engaged in crop and livestock farming, express interest and willingness to participate voluntarily in agricultural insurance if they are offered a premium subsidy ranging from 50% to 70%. in contrast, aquaculture producers express a demand for voluntary aquaculture insurance even without premium subsidies. concerning insurance coverage, farmers exhibit a preference for yield-based insurance products to mitigate yield loss, displaying diminished interest in revenue-based insurance. moreover, the study's analysis reveals unfavourable outcomes for thailand's private insurance sector, evidenced by high loss ratios in npci rice and maize insurance. this poses a substantial threat to the profitability and viability of insurers. in-depth interviews conducted for the study distinctly convey that private insurers in thailand actively seek governmental support to transfer agricultural risks from the private sector, particularly in instances of natural disasters, where the loss ratio surpasses 120% or 130%. this assistance would result in cost reductions and improve affordability for insurers. ultimately, the results underscore the shared perspective among regulators, agricultural and insurance experts, and the private insurance sector concerning dedicated agricultural insurance legislation and the need for robust public-private partnerships in thai agricultural insurance. there is a widespread consensus that these partnerships should be sustained and expanded to foster the development of resilient agricultural insurance programs. moreover, it is highlighted that a conducive legal and regulatory framework is imperative for the establishment and implementation of a sustainable agricultural insurance system in the country. agricultural insurance legislation should empower the thai government to provide public support and subsidies without reliance on annual cabinet approvals and resolutions. the research findings concerning area-yield rice crop insurance unveil notable statistical correlations among variables, as delineated in table 2. specifically, flood depth and flood duration manifest a negative correlation with the production rate, indicated by correlation coefficients of -0.661 and -0.631, respectively. this implies that an extended duration of submergence or an https://psl.noaa.gov/ agbioforum, 25(2), 2023 | 135 chaiyawat et al. — enhancing the effectiveness of insurance risk management in the agricultural, livestock, and fishery sectors in thailand elevated water level in the rice paddy is associated with a decline in rice production. additionally, the rice state exhibits a negative correlation with the production rate, with a correlation coefficient of -0.308. this implies that the rice lifecycle, particularly post the booting stage, is more vulnerable to the detrimental effects of floods, resulting in a reduction in the production rate. table 2. correlation among flood depth, flood duration, rice state, and production rate flood depth flood duration rice state production rate flood depth 1.000 0.442*** 0.204** − 0.661*** flood duration 1.000 0.171** − 0.631*** rice state 1.000 − 0.308*** production rate 1.000 note: *** significant level at 0.01 ** significant level at 0.05 the results of the study reveal a robust accuracy level in predicting rice yield loss using the employed models. as depicted in the research findings presented in table 3, the 2nd and 3rd degree multivariate polynomial regression models exhibit an r-square in the range of 83-84%. notably, decision trees display the highest accuracy level with an r-square approximately at 97%, accompanied by the lowest mean absolute error (mae) of 0.018 and the lowest root mean square error (rmse) of 0.041 in predictions. intriguingly, random forests also demonstrate a notable accuracy level, showcasing an r-square of approximately 95%, a low mae of 0.020, and a low rmse of 0.050 in prediction. to ensure the robustness and reliability of the study's findings, a k-fold cross-validation methodology was employed to evaluate the performance of the 2nd and 3rd degree multivariate polynomial regression, decision trees, and random forests algorithms. the utilization of cross-validation allowed for the assessment of these algorithms' performance across various train and test dataset configurations, facilitating a comprehensive analysis of their predictive capabilities. the average values of r-square, mae, and rmse were computed for each algorithm through a 10-fold crossvalidation process, as outlined in table 4. table 3. measurement model assessment machine learning algorithm rsquare mae rmse 2nd degree multivariate polynomial regression 0.827 0.073 0.095 3rd degree multivariate polynomial regression 0.846 0.053 0.089 decision trees 0.967 0.018 0.041 random forests 0.952 0.020 0.050 table 4. 10-fold validations for model assessment machine learning algorithm average r-square average mae average rmse 2nd degree multivariate polynomial regression 0.784 0.097 0.122 3rd degree multivariate polynomial regression 0.797 0.083 0.117 decision trees 0.723 0.074 0.124 random forests 0.803 0.068 0.110 upon analysis, it is observed that the prediction accuracy and performance of the various algorithms are comparatively similar. however, multivariate polynomial regressions display marginally higher mean errors, with an average mae ranging from 0.083 to 0.097 and an average rmse ranging from 0.117 to 0.122. in contrast, decision trees manifest diminished accuracy, evident through a reduction in r-square during the validation process. furthermore, the performance of decision trees in cross-validation indicates elevated mean errors compared to random forests, with an average mae of 0.074 and an average rmse of 0.124. this suggests a higher susceptibility of decision trees to overfitting. conversely, random forests consistently demonstrate elevated r-square values and low errors in both model fitting and validation stages significantly, the predicted values generated by random forests consistently align within the range of the training set values for the target variable, conforming to the expected range of the rice production rate (0% to 100%). consequently, random forests emerge as the optimal machine learning algorithm for the provided dataset. consequently, based on these findings, random forests are identified as the most fitting algorithm for implementation in the area-yield rice insurance model for jasmine-105 rice cultivation in ubon ratchathani and sisaket provinces. the analysis of the impact of climate change on flooding suggests a potential escalation in daily extreme precipitation in the future for ubon ratchathani and sisaket provinces. table 5 outlines the daily precipitation threshold (u) and furnishes details on the distribution, along with the goodness-of-fit test utilizing the gpd. results indicate an exponential distribution in the daily precipitation of both provinces. additionally, the assessment of the 10-100 year return levels of daily maximum precipitation, based on the gpd, indicates the likelihood of daily extreme precipitation surpassing 100 mm in both provinces within the next 10-100 years. table 5. threshold value, distribution, and return periods for precipitation in ubon ratchathani and sisaket provinces province station 𝒖 distribution ks p-value province station 𝒖 distribution ks p-value ubon ratchathani 48407 36.032 exponential 0.5801 sisaket 48409 24.272 exponential 0.9374 48408 33.650 exponential 0.7085 province station return period (years) province station return period (years) 10 25 50 100 10 25 50 100 ubon ratchathani 48407 115.83 138.10 156.84 177.39 sisaket 48409 89.57 109.33 126.38 145.50 48408 104.04 120.47 133.56 147.26 agbioforum, 25(2), 2023 | 136 chaiyawat et al. — enhancing the effectiveness of insurance risk management in the agricultural, livestock, and fishery sectors in thailand discussions the results revealed that a pertinent form of crop insurance is the area-yield index insurance, particularly well-suited for small-scale rice farmers in thailand. the findings of chen et al. (2017) and stutley (2022) suggest that areayield index insurance stands as a feasible choice for these farmers, offering protection against various perils, including pests and diseases. this aligns with the demand response observed among rice and maize farmers in thailand, aiming to mitigate the impact of yield loss. conventional insurance products, such as named-peril insurance as emphasized by elabed et al. (2013), prove impractical for small-scale agriculture due to elevated transaction costs, moral hazard, and adverse selection. conversely, both area-yield and index-based insurance methods offer a substantial reduction in the necessity for on-site verification of losses, effectively diminishing administrative costs and enhancing transparency (shirsath et al., 2019). moreover, the integration of area-yield crop insurance with machine learning holds promise for mutual advantages for both insurance firms and farmers. xu et al. (2020) indicate that machine learning algorithms have the capacity to augment risk management and mitigate the likelihood of moral hazard. in the realm of agricultural insurance, the application of machine learning algorithms holds substantial potential for enhancing precision and performance in predicting yield losses. machine learning methodologies are acknowledged as effective instruments for accurately forecasting intricate models, as underscored by murdoch et al. (2019). these methodologies exhibit significant utility within the agricultural sector, specifically in the context of area-yield crop insurance. the investigation underscores the capability of machine learning algorithms to enhance accuracy and performance in predicting yield losses. utilizing diverse machine learning algorithms, the study discerned that random forests exhibited superior performance, attaining a notable r-square of 95.2% during model fitting and 80.3% in the validation process. furthermore, random forests consistently demonstrated minimal errors in both mae and rmse during both fitting and validation of the model. these results align with the findings of sharma et al. (2023), supporting the assertion that random forests stand out as a high-performing algorithm for crop yield prediction. additionally, the study posits that decision trees may be susceptible to overfitting, resulting in diminished accuracy and increased errors during the validation phase. this finding aligns with the observations of ursenbach et al. (2019). the results of this investigation underscored the influence of climate change on intense precipitation in the provinces of ubon ratchathani and sisaket. these outcomes are congruent with the observations made by li et al. (2019) and chen et al. (2023) suggesting that excessive rainfall has the potential to result in considerable loss of yield, thereby presenting notable risks to both agriculture and insurance. sinnarong et al. (2019) examined climate change effects on thai rice production, revealing a potential 0.07-1.39% decrease with heightened precipitation. emphasizes the need for adept risk management to address extreme precipitation impacts. the results highlight the imperative for the efficient establishment of the agricultural system in thailand to attain sustainability. the thai government should expound upon the development plan and execute forthcoming scaling-up initiatives, incorporating robust sovereign insurance schemes. these findings resonate with the national economic and development board (nesdb), which advocates a 20-year national strategic framework. this framework seeks to fortify the agricultural sector, tackling farmers' challenges with the overarching objective of securing national prosperity and sustainability (royal thai government gazette, 2018). t in pursuit of this objective, the present study advocates six essential mechanisms for the engagement of the public sector in agricultural insurance in thailand. 1. agricultural insurance legislation: enacting suitable legal frameworks and regulations that foster the expansion and efficacy of agricultural insurance within a nation. this alignment is substantiated by the investigation conducted by lata et al. (2020), underscoring the significance of the adept implementation of agricultural insurance legislation in facilitating the proficient execution of insurance and risk management functions. 2. government support and subsidies: ensuring ongoing support and financial aid to farmers through subsidies and incentives, thereby improving their accessibility to and affordability of agricultural insurance. studies by du et al. (2017) and tok et al. (2023) indicate that governmental backing and financial subsidies constitute judicious and efficacious strategies in the mitigation of agricultural risks. these interventions enhance the appeal and financial feasibility of crop insurance for farmers, thereby contributing to an augmentation of its overall efficacy. 3. agriculture reinsurance and catastrophe risk financing and management: instituting reinsurance mechanisms, along with robust risk financing and management strategies, is imperative for addressing catastrophic risks and ensuring the stability and sustainability of the agricultural insurance sector. the escalating exposure of the insurance industry to climate-related risks underscores the pivotal role of government support in tackling these challenges an exemplary illustration of managing catastrophe risk financing and management in an emerging market is evident in the study by başbuğ-erkan and yilmaz (2015) focused on the turkish catastrophe insurance pool. this case study underscores the crucial role played by government support in fortifying the agricultural insurance sector. 4. agricultural insurance product design and development: fostering the creation of inventive and customized insurance products designed to meet the distinct requirements and challenges encountered by farmers across various agricultural domains is imperative. the investigation emphasized the significance of area-yield crop insurance as a valuable instrument for mitigating yield loss risks among small-scale rice farmers in thailand. these conclusions are congruent with the outcomes of prior research undertaken by sethanand et al. (2023). agbioforum, 25(2), 2023 | 137 chaiyawat et al. — enhancing the effectiveness of insurance risk management in the agricultural, livestock, and fishery sectors in thailand 5. data provision and digital technology: allocating resources to establish resilient data collection systems and harnessing digital technologies to streamline the precise evaluation of risks, estimation of losses, and processing of claims within the agricultural insurance sector. this strategy aligns with the conclusions drawn by mateos-ronco and server izquierdo (2020) indicating that government backing functions as a catalyst for the incorporation of digital technology, enhancing its efficacy in advancing insurance and risk management processes. 6. strong and effective public-private partnerships: cultivating synergies and alliances between the public and private spheres is crucial for bolstering the agricultural sector and safeguarding the livelihoods of farmers. government support, through the provision of essential resources, expertise, and a regulatory framework, augments the capabilities of public-private partnerships, thereby amplifying their efficacy in insurance and risk management initiatives (botzen et al., 2010). conclusion the study investigated the impact of government support on enhancing insurance risk management in thailand's agricultural, fishery sectors and livestock. through hypothesis formulation and data analysis, the study identified key mechanisms of government involvement, emphasizing the use of machine learning (random forests) in area-yield crop insurance to estimate provincial rice production. the findings underscored the economic viability and sustainability of the thai rice industry. additionally, the research highlighted the imperative for effective reinsurance and risk management practices in light of anticipated heavy rainfall due to climate change over the next 10-100 years. conclusively, the study affirmed the thai government's dedication to advancing a proficient and enduring agricultural insurance scheme, motivating farmers to secure their agricultural vulnerabilities and steering the nation towards sustainability. limitations the study recognizes specific constraints that necessitate prudent contemplation. despite the examination of six mechanisms through which government support can enhance insurance and risk management in agriculture, there exists the possibility of additional mechanisms meriting exploration. moreover, the research model framework, encompassing factors like flood depth, flood duration, and rice state as contributors to predict rice production loss, underscores the necessity for researchers to broaden their focus to incorporate additional dimensional datasets such as soil nutrients, satellite data, and index parameters. this expansion is crucial for achieving more comprehensive and accurate predictions in the realm of agricultural decision-making. acknowledgement this project was supported and funded by the office of the insurance commission (oic) 2022. the research team comprised thitivadee chaiyawat, samrieng mekkriengkrai, supatra phanwichit, chutatong charumilind, praveena in-yim, and itthidech attapaisal. references alnabhani, k., khan, f., & yang, m. 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email: r.fakhri.alajeeli@huc.edu.iq this research focuses on examining the impact of climate change on agricultural productivity (ap) in iraq, considering factors such as co2 emissions (eq), average rainfall (rain), temperature (temp), arable area (aa), energy consumption (ec), and agricultural employment (ea). gdp per capita (gdpc) and urbanization (up) are also studied as control variables. the study employs quantitative secondary research using time series data from 2000 to 2021 and utilizes ordinary least squares to analyze the data collected from the world development indicators. ea has a positive but insignificant influence on agricultural productivity, while ec and its lagged value show negative and insignificant impacts. conversely, the present value of eq negatively impacts ap, while lagged value has a positive impact on ap. both results are significant. additionally, rain, rea, and aa are found to have positive impacts on ap, with rain and aa showing significance. gdpc, up, and temperature exhibit insignificant impacts on ap. the study contributes to understanding the complex relationship between climate change and agricultural productivity in iraq. keywords: agricultural productivity, climate change, carbon emissions, rainfall, iraq 1. introduction iran, being the land of two rivers, is recognized as a significant contributor to agro production in the middle east. for ages, the country's agricultural sector relied on natural sources and measures to maximize the production of agro products. undeniably, the republic of iraq’s food and agriculture sector can contribute to the gdp and national/economic growth. creating and exploiting agro opportunities in the country is clear evidence of government aims and ambitions to optimize agricultural productivity (alhassany et al., 2022). however, the severe climate adversity in this region affected the production and growth and left the farmers with no option other than artificial choices with severe environmental concerns. as indicated by morgan (2022), the climate changes in iraq are observed in the form of severe water crisis. the food insecurity raised in ukraine-russia has worsened the agro and food conditions in the middle east. due to climate change, the water scarcity in the nineveh province, which is one of the leading wheat production parts, is raising multiple challenges for the agriculture sector of iraq. the mailto:dr.fakhri.alajeeli@huc.edu.iq mailto:aliafrawi@hotmail.com mailto:ghalib.yaseen@uoalkitab.edu.iq mailto:akhlas.n.k@au.edu.iq mailto:aladday@alayen.edu.iq mailto:shaymaa.h.path@nuc.edu.iq mailto:ahmed.ayad@nust.edu.iq mailto:r.fakhri.alajeeli@huc.edu.iq agbioforum, 25(2), 2023 | 52 alajeeli, abdullah, alkaaby, fahad, matalak, hadi, khudair, al-adday, khudair, al-qader — identifying the role played by climate change in…. country-level analysis also revealed that significant agro areas are confronting job creation and income generationrelated problems (world bank, 2018). neglecting the economic and ecological dimensions in the iraq agro sector can have profound future implications if not taken keen fully by the respective stakeholders. figure 1: flow rates of water resources source: un-escwa 2. literature review climate change and governance issues are putting the country at the edge of agricultural threats. the prevailing water quality conditions and poor availability of resources are hampering the country’s agricultural development. as presented by barhoum and nalbandian (2022), the agriculture sector of iraq is the second largest contributor to gdp after the contribution of oil revenues. the loss of agricultural productivity due to these issues has remained unsolved and will be a severe matter of concern in the coming future. it is also observed that agricultural employment is affected due to the increasing agrarian challenges provoked by climate change. by providing empirical evidence, jongerden et al. (2019) confirmed that the market and labor are becoming the most problematic issue in the context of climate change. with the intensification of water and land issues, employment is discouraged and affects the choices of the farmers. in the face of economic and environmental crisis, the agricultural sector is therefore at the edge of collapsing and need urgent and critical consideration by the government. the previous literature produced on this matter dealt with the issues from multiple perspectives. the study by eklund, abdi, and islar (2017) highlighted the challenges and opportunities in the agriculture sector of iraq for productivity and growth. high population, urbanization, water scarcity, and rural land management challenges obstruct the farmer from yielding maximum growth. the evidence provided by adamo et al. (2018) highlighted the water scarcity issue in the northern part of the country, adversely impacting the irrigated lands. a similar perspective is shared by abbas, wasimi, and al-ansari (2016), who opinionated that the water resources in the diyala river basin are badly affected by climate changes and predicted poor agro growth in the respective areas. moreover, these conditions are pushing back the potential farmers resulting in an employment crisis. despite covering the issues, the scarcity of literature on agrogrowth-related factors leads the research to explore the relevant issues in the context of iraq. the study, therefore, considers the significance of co2 emission, average rainfall, temperature, arable area, agricultural employment, and energy consumption in determining the agricultural productivity in iraq. the study follows quantitative research method and utilizes secondary databases to investigate the issues. covering the research gaps will be valuable in the contemporary research stream on agro-production and climate change issues in iraq and the middle east. 2.1 theoretical framework the literature contains several theories concerning land, agriculture, and climate change. the central theories literature has provided that come under the head of land and climate change were the economic approach, cellular automata, optimization techniques, rule-based simulation, multi-agent model, and microsimulation (koomen et al., 2007). these theories’ concepts were acknowledged, and the best-fit theory was the cellular automata approach that this study used for its theoretical framework. this approach has two frameworks, and the implemented framework for this study was the moland [monitoring land use cover dynamics] framework. this model has been explained as a part of different methodological tools for spatial planning that can be used for assessing, observing, and structuring the development of urban and regional environments (lavalle et al., 2004). this framework has been used in several studies covering the concepts related to the land and its changing factors; an investigation has been based on the moland model and has developed four factors related to future urban growth, and their analysis provided a very effective starting point for the discussion of the development of tourist areas of europe (petrov, lavalle, & kasanko, 2009), a recent study has investigated the rate of conversion of bare land and agricultural parts in the urban developed sectors and the future plan pattern to manage these changes, and they have revealed the major challenge of the rapid changing and reduction in the bare and agricultural lands and have provided future directions and pattern to maintain the agbioforum, 25(2), 2023 | 53 alajeeli, abdullah, alkaaby, fahad, matalak, hadi, khudair, al-adday, khudair, al-qader — identifying the role played by climate change in…. speed of urbanization based on the moland framework (feizi & shahabian, 2021). 2.2 impact of co2 emissions, average rainfall, temperature, arable area, energy consumption, and agricultural employment on agricultural productivity: 2.2.1 impact of climate factors on agricultural productivity climate change mainly refers to the changes and alterations in the atmosphere due to co2 emission, greenhouse gases, and high solar radiation abundance on the land surface that alter the natural balance of energy in the climate system (change, 2007). climate change has emerged and accumulated due to factors like socioeconomic development, increased transport and co2 emission, deforestation and global warming, land irrigation projects, and different political and military practices for human evacuation (gould & higgs, 2009). a systematic review has done a global assessment of the elements and procedures that influence potential agricultural productivity and have investigated the critical areas of uncertainty regarding meteorological, hydrological, and physical plant quantities based on the climate change model (neenu, biswas, & rao, 2013). in their findings, they have provided multiple implications for agricultural productivity. in the us, climate change has been mainly tested and linked with partial productivity of local efforts, yet when it was studied by combining it with the total factor productivity at the national level, it revealed the crucial limitation in the future planning for different agricultural regions faced with different climate epidemic scenarios, reflected the deliberateness of the us agricultural productivity due to climate changes (liang et al., 2017). the climate change factors have been investigated quantitatively, and their impact on agricultural productivity in the shortand long-run has been examined, revealing the long-run association of co2 emission, high temperature, lack of rain [drought], and precipitation regime and the natural disasters in reducing the agricultural productivity (ozdemir, 2022a), in contrast, co2 emission has reflected a short-run influence on agricultural productivity to some extent as well. the role of land surface temperature has been empirically proved to play a prominent role in the land usage rate in china (wang et al., 2020). a systematic review (praveen & sharma, 2019) has provided summarized knowledge from different sources that have addressed the impact of climate change factors on agricultural productivity, they have mainly highlighted the emission of different hazardous gases that reduce the productivity of crops, and they primarily highlighted the co2 gas emission against the productivity reduction. a recent study has targeted the climate change factors, i.e., temperature and rainfall, on the productivity of 15 different food crops and investigated their role in productivity; their result has shown the adverse effect of climate changes on agricultural productivity and food availability to low and middle families and the drop of productivity rate by the increase in the temperature (bocchiola et al., 2019). the climate factor of deforestation has been noticed itself as a cause of many climate changes, as it has been examined and provided empirical evidence on the negative impact of deforestation on the decrease in the rainfalls, which reduce the irrigation properties of land, ultimately causing the drastic falls in the productivity of the agriculture sector (leite-filho et al., 2021). in iraq, agricultural productivity has been observed as not safe from the harmful effects of climate change as well, and a recent study has targeted three climate factors; rainfall, temperature, and agricultural area with the productivity of iraqi farm regions, and they have manifested the extensive dependence of crops on the surface water, and less influence of temperature on the productivity of lands (jabal, khayyun, & alwan, 2022). by following the information from past studies, the following hypothesis has been derived for testing: h1: there is a significant relationship between climate factors and agricultural productivity. 2.2.2 impact of economic factors on agricultural productivity there have been mentioned some economic factors that have been addressed have a strong correlation with agricultural productivity. these factors have significant direct or indirect influences on agricultural productivity; in this dimension, faridi and murtaza (2013) have investigated the role of energy consumption factors on economic growth and agricultural productivity; their results have shown the negative association between electricity consumption and economic and agricultural growth because of its shortage and favorable support of gas and oil consumption for the agricultural productivity. the use of either renewable or non-renewable energy resources is influenced by energy prices and fluctuations in prices, and it ultimately defines the impact of energy consumption on agricultural productivity and growth (ma et al., 2022). the impact of renewable and nonrenewable resources has been considered in the agricultural productivity context; they have compared the short-run and long-run casualties between the targeted variables (ben jebli & ben youssef, 2017), and in their results, they have discussed the shortrun causality between the agricultural value-added and renewable energy resources and the gdp, shedding light on the positivity and benefit of renewable resources for agricultural productivity. a recent study has examined the impact of renewable energy resources on agriculture and economic growth, and they have provided positive insight into the value of renewable energy resources for reducing co2 emissions that will indirectly boost agricultural productivity. the agricultural productivity linked with energy consumption of renewable and non-renewable resources has been noticed in the discussion of the literature in different studies targeting different countries like raihan and tuspekova (2022) have investigated the interdependence of energy use, agricultural productivity, economic growth, and co2 emission in the agriculture sector of nepal, kumar, scott, and singh (2013) investigated different strategies of energy consumption on agbioforum, 25(2), 2023 | 54 alajeeli, abdullah, alkaaby, fahad, matalak, hadi, khudair, al-adday, khudair, al-qader — identifying the role played by climate change in…. the agricultural productivity in india, and raihan (2023) have argued about the increase in renewable resource consumption have increased the agricultural productivity that reduces the environmental depleting factors in egypt. these studies have highlighted the popularity of the targeted concept of this study and its significance from the research point of view in different countries. the other economic factor for agricultural output includes agricultural employment. studies have mentioned the reduction in the demand for labor force after extensive technological adoption in the agricultural procedures and steps, and the rate of agricultural employment has experienced a significant drop (sidhu & singh, 2004). after some gap, studies have elaborated on the division of income in rural areas highlighting the significant portion of the income stream from agricultural employment (vatta & sidhu, 2010). but over time, with the implementations and adoption of advanced digitalized machines, the question about the loss of employment in agriculture has been questioned again. to answer this question, a recent systematic review study has engraved three issues regarding agriculture and employment; high costs of land and digitization, low-skilled workers in the labor market, and the issues related to digital data (rotz et al., 2019). another study (marinoudi et al., 2019) has investigated the role of automation and labor power collectively on crop production, and they have suggested a proposed ideology for the equilibrium of labor and robots to boost agricultural productivity and has focused on the training of the existing labor to improve their efficiency of technology use for robust agricultural production. to address this highlighted gap in the literature, the following hypothesis has been synthesized: h2: economic factors like agricultural employment and energy consumption have significant association with agricultural productivity. 3. research methodology the present research deals with identifying the impact of climate change on the agricultural productivity of iraq through co2 emissions, average rainfall in iraq, temperature of the country, arable area, energy consumption and agricultural employment. in this study, gdp per capita and urbanization have been studied as control variables. the researcher has applied "quantitative secondary research" within the time series of 2000-2021. for this purpose, various effective statistical techniques have been implemented. data has been collected from world development indicators. it is because wdi entails the trait of keeping adequate data. wdi help the researchers explore information related to all the developmental aspects, including the recent and previous years (swanson, 2006). this also aids in assessing the gradual improvement or degradation related to any explored factor as this study aims to collect data regarding carbon dioxide emissions, average rainfall, temperature, arable area of iraq's agriculture energy consumption and agricultural employment. so keeping in view the nature of the research and the variable under study, wdi has been explored by the researcher. 3.1. description of variables 3.1.1. climate change in agricultural productivity (dependent variable) in the present research, climate change in agricultural productivity has been studied as the dependent variable. climate change can disrupt food availability, and access to food and food quality can be affected. so increased temperatures and changes in extreme weather events result in diminished agricultural productivity (nastis, michailidis, & chatzitheodoridis, 2012). 3.1.2. co2 emissions (independent variable) according to friedlingstein et al. (2010), co2 emissions are those emerging from fossil fuels or types of cement manufacturing. 3.1.3. average rainfall (independent variable) average rainfall can be understood as a calendar year of rain excluding snow. so average rainfall has been studied in this research as the annual rainfall in a year within a location (chèze & sauvageot, 1997). 3.1.4. temperature (independent variable) temperature is a physical quantity that shows quantitatively the perception of coldness and hotness (precht, 2013). 3.1.5 arable area (independent variable) according to robertson (1956), arable land can be considered "temporary crops." 3.1.6. energy consumption (independent variable) the total energy needed in a given process is called energy (chen & chen, 2011). 3.1.7. agricultural employment (independent variable) agricultural employment can be a farm service undertaken by an employee on a farm regarding soil cultivation, harvesting, or raising the agricultural commodity (aliber, baipheti, & jacobs, 2009). 3.1.8. gdp capita (control variable) according to kravis, heston, and summers (1978), gdp per capita is the sum of "gross value" added by all the "resident producers in the economy". 3.1.9. urbanization (control variable) urbanization means the concentration of the "human population" in "discrete areas" (ritchie & roser, 2018). 4. model estimation researcher uses different tests, including the descriptive test, to assess the descriptive summary of the data (nimon, 2015). the researcher has also performed heteroscedasticity and serial correlation tests (baltagi & li, 1991; glejser, 1969). the following equation is the regression equation for the model showing the impact of different variables involved in this research on agricultural productivity. 𝐴𝑃𝑡 = 𝛽0 + 𝛽1𝐶𝑂2𝐸𝑀𝑡 + 𝛽2𝐴𝑅𝑡 + 𝛽3𝑇𝐸𝑀𝑃𝑡 + 𝛽4𝐴𝐴𝑡 + 𝛽5𝐸𝐶𝑡 + 𝛽6𝐴𝐸𝑡 + 𝛽4𝐺𝐷𝑃𝐶𝐴𝑃𝑡 + 𝛽5𝑈𝑅𝐵𝑡𝜀𝑡 in the above equation, the model intercept is shown by 𝛽0 and error term is illustrated by 𝜀𝑡. agbioforum, 25(2), 2023 | 55 alajeeli, abdullah, alkaaby, fahad, matalak, hadi, khudair, al-adday, khudair, al-qader — identifying the role played by climate change in…. the researcher has implemented "ordinary least square" method to assess the relationship among variables. according to craven and islam (2011), ols is an effective and common method used for the estimation of "linear regression equations", which explains the association between one or more independent quantitative variables (climate change in the agricultural productivity of iraq through the co2 emissions, average rainfall in iraq, temperature of the country, arable area, energy consumption and agricultural employment) and a dependent construct which is agricultural productivity in this study. the following equation shows the long-term influence of independent variables on the dependent constructs. ∆𝐴𝑃𝑡 = 𝛼 +∑𝛽1 𝑢 𝑖=1 ∆𝐴𝑃𝑡−1 +∑𝛽2 𝑢 𝑖=1 ∆𝐶𝑂2𝐸𝑀𝑡−1 +∑𝛽3 𝑢 𝑖=1 ∆𝐴𝑅𝑡−1 +∑𝛽4 𝑢 𝑖=1 ∆𝑇𝐸𝑀𝑃𝑡−1 +∑𝛽5 𝑢 𝑖=1 ∆𝐴𝐴𝑡−1 + 𝛾1𝐸𝐶𝑡−1 + 𝛾2𝐴𝐸𝑡−1 + 𝛾23𝐺𝐷𝑃𝐶𝐴𝑃𝑡−1 + 𝛾4𝑈𝑅𝐵𝑡−1 + 𝜀𝑡 the above equation ∆ represents the "constant for long-run predictors," and γt represents the "co-efficient for these predictors". in the existence of heteroscedasticity and autocorrelation problems, the above-stated equation will be converted into a "natural logarithm." this will efficiently eliminate the incidence of heteroscedasticity and increase the "estimates' robustness and efficiency" (dismuke & lindrooth, 2006; ozturk & acaravci, 2013). 5. empirical findings 5.1 descriptive summary table 1 presents descriptive statistics to assess various data measures, such as mean, skewness, kurtosis, and jarquebera, which are utilized to examine the normality of the data. the jarque-bera test, considering both skewness and kurtosis, was utilized for the assessment of normality. as per the jarque-bera test, values that are closer to 0 indicate the normality of the data. ap has a p-value of 0.41 with a jb statistic of 1.74; hence, it is normally distributed. similarly, ea, ec, rea, up and temp have a normal distribution as the p-values surpassed 0.05. on the other hand, aa, eq, gdpc and rain do not exhibit normality as the p-values < 0.05. table 1: descriptive statistics ap aa ea ec eq gdpc rain rea up temp mean 5.130541 10.11329 23.84362 744.4403 3.341865 1.630461 206.1818 1.026818 69.45441 23.20000 median 4.848924 10.62968 23.92293 936.9309 3.509095 2.320246 216.0000 1.020000 69.18550 23.04000 maximum 8.562672 11.88925 27.58526 1391.032 4.347264 49.03164 216.0000 2.560000 71.11900 24.35000 minimum 2.815818 0.000000 19.81721 0.000000 0.000000 -38.56172 0.000000 0.000000 68.49600 22.36000 std. dev. 1.608329 2.464209 2.829292 541.4351 0.865040 14.91700 46.05135 0.687600 0.825629 0.526407 skewness 0.669440 -3.301327 -0.018878 -0.534752 -2.671041 0.559693 -4.364358 0.710974 0.623432 0.802098 kurtosis 2.659228 14.22161 1.449809 1.610853 11.30609 7.834149 20.04762 2.863712 2.077496 2.888811 jarque-bera 1.749666 155.3930 2.204142 2.817440 89.40150 22.57018 336.2441 1.870466 2.205209 2.370325 probability 0.416932 0.000000 0.332182 0.244456 0.000000 0.000013 0.000000 0.392494 0.332005 0.305697 sum 112.8719 222.4923 524.5597 16377.69 73.52102 35.87015 4536.000 22.59000 1527.997 510.4000 sum sq. dev. 54.32114 127.5189 168.1027 6156190. 15.71418 4672.857 44535.27 9.928677 14.31492 5.819200 observations 22 22 22 22 22 22 22 22 22 22 5.2 correlation the correlation matrix is shown in table 2, which allows researchers to assess the association between variables with the coefficients. the coefficients indicate the strength of the relationships between the variables, ranging from -1 to +1, where a value of 1 represents a perfect positive correlation, while -1 indicates a perfect negative association. according to the table, ap shows a positive correlation with aa (r = 0.1861), whereas ap is negatively correlated with eq (r = -0.0015) and gdpc (r=0.2502). aa displays negative correlations with gdpc (r = -0.0229), up (r = 0.2102), and temp (r = -0.3341). additionally, temp exhibits negative correlations with all variables except up. similarly, up is negatively correlated with all variables, as shown in the table. these negative correlations indicate that these variables move in opposite directions. table 2: correlation analysis ap aa ea ec eq gdpc rain rea up temp ap 1.0000 aa 0.1861 1.0000 ea 0.7422 0.1236 1.0000 ec 0.4389 0.0546 0.6502 1.0000 eq -0.0015 0.8417 -0.0695 0.0750 1.0000 gdpc -0.2502 -0.0229 0.0520 0.0863 0.0200 1.0000 rain 0.2527 0.9167 0.3179 0.3071 0.8629 0.0348 1.0000 rea 0.0162 0.3606 0.1432 0.2757 0.0768 0.0428 0.3335 1.0000 up -0.6292 -0.2102 -0.9563 -0.7640 -0.0683 -0.1160 -0.4503 -0.2227 1.0000 temp -0.4396 -0.3341 -0.5818 -0.5332 -0.1361 -0.0873 -0.4328 -0.2481 0.6175 1.0000 5.3 regression results to test the impact of the explanatory variables on agricultural productivity, the ordinary least square method was utilized, and the results are displayed in table 3. the study presumed that economic and climate factors have a significant impact on agricultural productivity in iraq. firstly, it can be observed that ea has a positive influence on ap wit the β coefficient of 0.32. however, the association is considered insignificant, with a p-value of agbioforum, 25(2), 2023 | 56 alajeeli, abdullah, alkaaby, fahad, matalak, hadi, khudair, al-adday, khudair, al-qader — identifying the role played by climate change in…. 0.4225. secondly, ec is found to negatively affect ap; however, with a p-value of 0.5476, the impact is insignificant. additionally, the previous value of ec also negatively but insignificantly impacts ap. the results showed that the present value of eq has a negative impact on ap, and the association is significant at a 5% significance level. however, the lagged value of eq positively impacts ap with a pvalue of 0.0054. in addition, the current and previous values of gdpc have a positive and insignificant impact on ap. rain is found to positively and significantly influence ap with a p-value of 0.0285. rea has a positive impact on ap; however, the impact is insignificant as the p-value > 0.05. in addition, the findings revealed a negative and insignificant impact of up on ap. temperature positively impacts ap, but an insignificant impact is reported with a p-value of 0.35. lastly, aa is found to negatively and significantly influence ap at a lower level of significance, i.e., a 10% significance level. the r-sqaured value indicates that 94% of the variation in ap is accounted by the explanatory factors. table 3: ols analysis variable coefficient std. error t-statistic prob. ea 0.329998 0.390367 0.845351 0.4225 ec -0.000460 0.000732 -0.627801 0.5476 ec(-1) -0.000623 0.000710 -0.877225 0.4059 eq -3.211080 1.293651 -2.482184 0.0380 eq(-1) 6.039777 1.598046 3.779476 0.0054 gdpc 0.026794 0.016891 1.586267 0.1513 gdpc(-1) 0.000981 0.015279 0.064207 0.9504 rain 0.081958 0.030744 2.665855 0.0285 rea 0.289149 0.423039 0.683505 0.5136 up -1.667190 1.889161 -0.882503 0.4032 temp 0.415751 0.422188 0.984753 0.3536 aa -0.528390 0.278165 -1.899556 0.0940 c 82.09710 135.6201 0.605346 0.5617 r-squared 0.941840 mean dependent var 5.154150 adjusted r-squared 0.854600 s.d. dependent var 1.644135 s.e. of regression 0.626930 akaike info criterion 2.177051 sum squared resid 3.144331 schwarz criterion 2.823660 log likelihood -9.859035 hannan-quinn criter. 2.317382 f-statistic 10.79600 durbin-watson stat 2.129777 prob(f-statistic) 0.001137 the distribution of the residuals is shown in the figure below, demonstrating that the histogram exhibits a bellshaped curve. a normal distribution is validated with a small jb value of 0.762 and a p-value exceeding 0.05. 0 1 2 3 4 5 6 -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 series: residuals sample 2001 2021 observations 21 mean 6.76e-15 median 3.55e-13 maximum 0.615176 minimum -0.942574 std. dev. 0.396505 skewness -0.457770 kurtosis 2.818871 jarque-bera 0.762144 probability 0.683129 . figure 3: regression standardization residuals the lm test was employed to examine serial correlation, and the outcomes presented in table 4 indicate that the p-value for f-statistic is 0.15. hence, the null hypothesis is rejected at the 5% significance level. this rejection implies that there is no issue of autocorrelation among the residuals. table 8: breusch-godfrey serial correlation lm test f-statistic 2.618214 prob. f(2,6) 0.1523 obs*r-squared 9.786472 prob. chi-square(2) 0.0075 in addition, the researcher evaluated whether the variance of the residuals is constant using the null hypothesis of homoskedasticity. since the p-values exceed the significance level of 0.05 in table 9, we do not reject the null hypothesis. as a result, we can conclude that the residuals are not heteroscedastic. table 9: heteroskedasticity test f-statistic 2.171406 prob. f(1,18) 0.1579 obs*r-squared 2.152955 prob. chi-square(1) 0.1423 6. discussion the primary focus of the researcher was on climate change and its impact on agricultural productivity in iraq. the adverse climate impacts, the scarcity of water, and the poor employment opportunities raised serious concerns about tackling the issues. the researcher took into consideration the explanatory factors, i.e., co2 emission, temperature, average rainfall, energy consumption, arable area, and agricultural employment in relation to agricultural productivity. the researcher hypothesized that the economic and climate factors have a significant role in determining the country's agricultural productivity. according to the results, employment quality significantly negatively impacts agricultural productivity. at the same time, rain is found to significantly impact agricultural productivity. the results are consistent with the previous agbioforum, 25(2), 2023 | 57 alajeeli, abdullah, alkaaby, fahad, matalak, hadi, khudair, al-adday, khudair, al-qader — identifying the role played by climate change in…. research findings. the study by abiye (2022) highlighted that the soil and water availability in the rain and other reserves significantly improve agronomic practices and boost agricultural growth. therefore, the positive correlation between rain and agricultural growth is confirmed irrespective of the spatial and regional variance. however, in the context of asia, the proposition is nullified by ozdemir (2022b). according to him, the annual rainfall in asia is insignificant in determining agricultural productivity. this contradiction implies that rain's effect on agricultural productivity depends on the agro factors, i.e., resource availability, agricultural policies, and production methods. leite-filho et al. (2021) added an additional perspective that deforestation impacts rainfall, lowering agricultural revenues by obstructing agricultural growth. the consequences of climate change are thus undeniable, especially in the form of essential agricultural sources, i.e., land and water. the results also highlighted a significant positive relationship between arable areas and agricultural productivity. the presence of arable lands provides better growth opportunities which resulted in the form of improved growth and development. these results are supported by some of the previous research studies in this area. according to prăvălie et al. (2021), arable land is connected to more production in minimum resources. the land degradation footprints on the global arable land is a serious environmental and agricultural issue that encompasses multiple phenomena, including soil erosion, salinization, and vegetation decline, which determines the relation between agricultural productivity and the quality of arable lands. the empirical evidence thus made the proposition true that arable land is only significant when it does not subject to the degradation process. the results are also strengthened by the findings of he et al. (2019). the dramatic change in production has not only influenced the requirements for arable land but also paved the room for other sustainable sources in optimizing agricultural production. the demand for arable land, together with sustainable tools and instruments, holds the potential to elevate productivity and development in agriculture. besides these variables, no other factors are found significant in relation to agricultural productivity. co2 emission, energy consumption therefore do not have any significant association with the agricultural productivity of iraq’s agricultural sector. 6.1. conclusion climate change in recent years has adversely impacted the agriculture business all over the world. in the middle east, the scarcity of water due to climate changes raised big troubles for the farmers to ensure agro growth and production. the previous studies and surveys highlighted the threats and alarming situation caused by climate change and the possible future implications it has. the attention is also drawn towards the economic and climate factors that are possible to influence the agriculture growth in this region. the focus of the present study is the agricultural growth and productivity of iraq. the researcher acknowledged the current agricultural issues and examined the associated factors that are responsible for them. as some of the arable provinces of the country get hit by drought, the attention is diverted towards employment, energy consumption, and natural resource management in maintaining the sustainability and growth of the agricultural sector. the explanatory factors that are analyzed by the researcher include co2 emission, average rainfall, arable areas, temperature, energy consumption, and agricultural employment. the gdpc and urbanization are observed as the control variable. the quantitative research approach was adopted, and the data was collected from 2000-2021. according to the findings, the ea has a positive and insignificant impact on agricultural productivity. employment quality negatively impacts agricultural productivity. while rain, renewable energy consumption, and arable land have a significant association with agricultural productivity. 6.2. research implications the researcher analyzed the factors that hold sheer significance in the context of iraq’s environmental conditions. the data extracted from the secondary sources provided an in-depth analysis of the energy consumption methods and their role in environmental degradation in the last several years. the periodic changes over time depict the credibility and suitability of energy consumption methods and their diverse impact on the environment. theoretically, the study contributes to the past literature present on environmental degradation and energy consumption behaviors. by explaining the environmental consequences, the study develops a theoretical understanding of the issues under discussion. the findings also have several policy ramifications. it implies that natural resource sufficiency boosts renewable energy consumption and lowers environmental degradation. moreover, it is also occurred that renewable energy is significantly associated with environmental degradation. the adoption of sustainable and renewable ways reduces the ecological imprints and therefore holds value in the longer term. the researcher also proposed that the mediating role of energy resource sufficiency is significant in the understanding of energy consumption in iraq and the environmental implications it has. the data can be utilized by government bodies to revise energy production and consumption policies in order to maintain sustainable standards in this region. 6.3. limitations and future indication the study holds research significance and has value in contemporary research debates on sustainable agriculture. however, there are certain limitations that restrict the scope and utility of this study. the researcher focused on the agricultural sector of iraq. as climate change is a universal issue and impacts countries on different levels, the specific country context is not enough to understand the impact of climate change on agriculture on a broader level. future studies can be expanded in a wider regional context by analyzing the climate effects in different middle east countries. moreover, the researcher opted quantitative research method and utilized the data from secondary sources, i.e., reports and academic material. due to the diversity of the issues, they can be examined by adopting agbioforum, 25(2), 2023 | 58 alajeeli, abdullah, alkaaby, fahad, matalak, hadi, khudair, al-adday, khudair, al-qader — identifying the role played by climate change in…. qualitative research methods, which can provide a broader perspective on the issues. the explanatory factors are also limited; 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(2010). rural non-farm employment, income distribution and poverty: micro level evidence from punjab. indian journal of agricultural economics, 65(4), 1-17. doi: https://doi.org/10.22004/ag.econ.204720 wang, l., tian, f., wang, x., yang, y., & wei, z. (2020). attribution of the land surface temperature response to land-use conversions from bare land. global and planetary change, 193, 103268. world bank. (2018). iraq agriculture transformation program. world bank group. retrieved from https://www.worldbank.org/en/country/iraq/publ ication/economic-outlook-april-2018 https://doi.org/10.22004/ag.econ.204720 https://www.worldbank.org/en/country/iraq/publication/economic-outlook-april-2018 https://www.worldbank.org/en/country/iraq/publication/economic-outlook-april-2018 agbioforum, 25(2): 180-192. ©2023 agbioforum vrine in green: shifting towards ecological rbv theory nadir aliane department of management school of business king faisal university al-ahsa 31982 saudi arabia. email: nhaliane@kfu.edu.sa hassane gharbi department of management, faculté des sciences économiques et de gestion de nabeul – tunisia. email: hassane.gharbi@yahoo.fr karima bouzguenda department of management, faculté des sciences economiques et de gestion de sfax – tunisia. email: ka.bouzguenda@gmail.com abdullah hamoud ali seraj department of management school of business king faisal university al-ahsa 31982 saudi arabia. email: aseraj@kfu.edu.sa this research endeavours to contribute to the advancement of resource-based view (rbv) as a conceptual framework within existing literature. the investigation assesses the impact of the resources' attributes value, rarity, inimitability, nonsubstitutability (vrin), augmented by the ecological factor (e) on competitive advantage. notably, the study introduces an environmental perspective to rbv by incorporating the ecological attribute (e) and empirically examines its influence on competitive advantage. the quantitative survey, conducted within six tunisian private clinics located in the capital tunis, involved 350 selfdistributed questionnaires among diverse employee categories. out of these, 288 usable responses were collected, resulting in an 82.3% return rate. utilizing spss and amos version 23 software, structural equation modelling analysis was performed. the findings affirm that resources adhering to the vrin+e criteria significantly contribute to competitive advantage. all hypotheses testing vrine attributes in relation to competitive advantage were substantiated. the study concludes by offering theoretical, methodological, and managerial insights specific to the ecological attribute, along with suggesting avenues for future research. keywords: rbv, ecological attribute, competitive advantage. introduction sustainability, integrating human, natural, and financial resources, aims to enhance the economy, environment, and society for current and future generations (sathasivam, abu bakar, & che hashim, 2021). widely accepted by various authors over decades, this concept also finds recognition in rural societies. ancient civilizations often intertwined their religion with environmental preservation. in the business context, sustainability ensures ongoing organizational productivity (hariram, mekha, suganthan, & sudhakar, 2023). unfortunately, profit-driven companies are increasingly adopting machiavellian practices, with adverse environmental consequences. in the contemporary business landscape, companies predominantly prioritize profit and short-term investments, often overlooking long-term growth, societal, and environmental considerations (haseeb, hussain, kot, androniceanu, & jermsittiparsert, 2019). a deeper understanding of sustainable competitive advantages and corporate sustainability can empower organizations to achieve consistent growth. many small businesses face a short lifecycle due to a lack of comprehension of sustainability and core competence, leading to a decline within five years of inception. acquiring knowledge in sustainability not only facilitates the attainment of sustainable competitive advantages but also contributes to increased revenue, profit, and environmental and societal responsibility (wang, 2021). in the context of escalating global competition, the significance of sustained competitive advantage has risen substantially. a company can only assert a competitive advantage by formulating a strategy that yields unique value and is not replicated by competitors (yang, jin, & zhao, 2022). to attain such an advantage, organizations must concentrate on identifying strategies for product differentiation, cultivating or enhancing core competencies, acquiring distinctive technology, and securing intellectual property. these factors significantly contribute to an organization's success in the contemporary competitive marketplace. within the framework of the rbv, j. barney (1991) underscores the internal resources of an organization as pivotal for gaining a competitive advantage. according to j. barney, wright, and ketchen jr (2001), for resources to sustain their potential as fountains of sustainable competitive advantage, they must possess the attributes of being valuable, rare, imperfectly imitable, and non-substitutable. the primary objective of the resource-based view is to elucidate the factors influencing organizational diversity and growth, thereby underscoring the critical importance of organizational resources. the concept proposed by j. barney (1991) unquestionably stands as a fundamental point of reference in the field of strategic management (alghamdi & agag, 2024; m. b. lieberman, 2023). situated as an internal approach to comprehending competitive advantage within the rbv framework, an organization's resources constitute the fundamental attributes influencing its performance. consequently, these resources facilitate the formulation of strategies aimed at enhancing organizational effectiveness and efficiency, thereby contributing to the establishment of a sustainable competitive advantage (antunes, pereira, dias, & da silva, 2023; sabourin, 2020). scholars emphasize the distinction between an organization's resources, capabilities, and competencies (hidayat, mahanani, sugiartono, & kurniawan, 2022). the firm's access to resources and abilities plays a crucial role in competency development, requiring effective combination and mobilization for specific product-related competencies (konopik, jahn, schuster, hoßbach, & pflaum, 2022). valuable resources aid in seizing opportunities, mitigating external threats, and enhancing organizational effectiveness through strategic mailto:nhaliane@kfu.edu.sa mailto:hassane.gharbi@yahoo.fr mailto:ka.bouzguenda@gmail.com mailto:aseraj@kfu.edu.sa agbioforum, 25(2), 2023 | 181 aliane, gharbi, bouzguenda, seraj. — vrine in green: shifting towards a more ecological rbv theory implementation. in sustainable development, resource imitability or transferability is vital, especially if the resources are ecologically based (assensoh-kodua, 2019). the study aims to apply the resource-based view in the tunisian context, introducing an ecological aspect as the fifth attribute to assess its impact on the competitive advantage of tunisian private clinics. it prompts the question of whether it's time to consider incorporating an ecological attribute into j. barney (1991) rbv equation. literature review and theoretical framework resource-based view the rbv model is primarily employed to elucidate strategic alternatives that naturally emerge based on distinct resource perspectives. various scholars assert that products, resources, and organizations represent different facets of the same phenomenon (assensoh-kodua, 2019). numerous products necessitate a variety of services, sourced from diverse resources applicable across multiple product lines. considering an organization's engagements in various potential markets, it becomes feasible for the organization to ascertain the minimal requisite resources (i̇pek, 2018). simultaneously, defining the organizational profile enables entities to explore the broad spectrum of market activities associated with the product. the fundamental concept underpinning the rbv posits that organizations should prioritize the cultivation of internal capabilities and existing resources to secure a distinctive or competitive advantage in the market (quaye & mensah, 2019). in contrast to environmental models of competitive advantage, the rbv mitigates their limitations by establishing a correlation between a company's heterogeneous resources and the resultant strategic advantages. as articulated by j. barney (1991), only strategic resources and skills that are substantial and valuable should be acknowledged as potential sources of competitive advantage. the performance of a company is contingent upon the resources available to it and the manner in which they are utilized. porter (1997) asserts that competitive advantage can be attained through cost leadership, differentiation, or a hybrid strategy encompassing both. grant (1991) supplements this perspective by positing that a company's competitive advantages stem from its resources (human, organizational, intangible, physical, and financial) and capabilities (skills and knowledge). the synergy between these resources and capabilities plays a pivotal role in enhancing overall company performance (musyoka, arasa, & ombuki, 2022). consequently, the rbv of the firm elucidates the significance of cultivating resources and capabilities that are valuable, rare, inimitable, and nonsubstitutable. strategic resources and competencies, also referred to as core or distinctive competencies (camisón & puig-denia, 2020), encompass resources possessing qualities of value, rarity, and inimitability that render them beyond replication or substitution by competitors. organizations derive value through the configuration of diverse resources, although attempting to replicate another firm's value configuration may lead to the demise of the imitating entity. such replication is infrequent due to the requisite configuration complexity (islami, mustafa, & topuzovska latkovikj, 2020). previous studies have treated rbv as foundational literature, emphasizing its strategic importance in the market. researchers have posited that the vrin attributes of resources, denoting value, rarity, inimitability, and non-substitutability, are pivotal factors influencing value creation, thereby establishing a crucial relationship with sustainability. competitive advantage the competitive advantage paradigm has faced considerable contention among researchers owing to its multifaceted and ambiguous nature (m. lieberman, 2021; postrel, 2018). attaining competitive advantage is imperative for organizations to ensure their relevance in the market, and the rbv emerges as a pivotal framework for achieving this goal (sameera, 2018). the discourse surrounding rbv has predominantly centred on organizational capabilities and their inherent potential to yield a competitive advantage (j. barney et al., 2001). noureddine, errabbah, and lekbich (2023) articulate competitive advantage as "the factor or set of factors that enable an organization to distinguish itself from its competitors and offer distinctive values and advantages to customers." some studies characterize competitive advantage as a compilation of capabilities and elements facilitating performance improvements relative to competitors. deszczyński and deszczyński (2021) contend that the rbv theory positions a firm's internal resources as the cornerstone of competitive advantage and firm performance, defining competitive advantage as the defining factor that sets a company apart. researchers assert that an organization is predicated on the aggregation of organizational, human, and physical resources (chigara, 2021). organizational resources, characterized by imperfect sustainability, imperfect imitability, rarity, and value, serve as the primary reservoir for attaining sustainable competitive advantage and maintaining organizational performance. these resources must adhere to the vrine criteria, encompassing valuation, rarity, imperfect inimitability, nonsubstitutability, and ecological considerations (zvarimwa & zimuto, 2022). azeem, ahmed, haider, and sajjad (2021) propose four empirical indicators, namely value, rarity, inimitability, and non-substitutability, aligning with j. barney (1991) framework, to evaluate a company's resource potential for generating competitive advantage. additionally, we introduce a fifth ecological attribute to extend the scope of the rbv equation and ensure the incorporation of environmental considerations. valuable resource and competitive advantage valuable resources in an organization are those that provide strategic value, aiding in market opportunity exploitation and threat reduction (khan, yang, & waheed, 2019). if resources fail to increase value for the firm, they hold no utility for the organization. according to j. barney et al. (2001), a company's resources must be valuable to serve as a sustainable competitive advantage, requiring the agbioforum, 25(2), 2023 | 182 aliane, gharbi, bouzguenda, seraj. — vrine in green: shifting towards a more ecological rbv theory addition of value to ensure this advantage. j. barney (1991) emphasizes that the value of specific resources depends on the unique market context in which they are applied. a valuable resource not only enhances the company's differentiation position but also reinforces its cost-containment strategy. externally, such a resource can proactively address threats and exploit opportunities, surpassing competition (j. barney, 1991). considerable empirical research explores the impact of valuable resources on competitive advantage. as per farida and setiawan (2022), resources that enhance organizational potential, enabling cost reduction and effective responses to environmental threats and opportunities, are deemed valuable. the value of a resource is gauged by its effectiveness in influencing organizational capabilities and securing competitive advantage (j. ferreira, coelho, & moutinho, 2020). the acquisition of capabilities and resources by an organization plays a pivotal role in determining its level of competitive advantage. an organization possessing highly valuable capabilities and resources is more inclined to attain a significant competitive advantage (azeem et al., 2021). newbert (2008) discovered a noteworthy positive influence of value on the preservation of competitive advantage. in a separate investigation within the setting of large and medium-sized croatian companies, scholars empirically demonstrated that valuable value exerts a substantial and positive effect on sustainable competitive advantage. furthermore, a study conducted on banks operating in a highly unstable economy, with a primary focus on directors, managers, supervisors, and senior executives, by zvarimwa and zimuto (2022), revealed a significant and positive relationship between valuable resources and competitive advantage. consequently, h1value resource positively influences competitive advantage. rare resource and competitive advantage researchers highlight that organizational resources are considered rare if few organizations possess them, a criterion easily accessed through vrio. rare resources, challenging for potential competitors to acquire, play a crucial role in gaining organizational advantages. resources common to most organizations lack the capacity to design unique strategies, hindering the attainment of competitive advantage (d’oria, crook, ketchen jr, sirmon, & wright, 2021). possession of valuable resources enables a firm to outperform competitors by effectively controlling negative factors, exploiting opportunities, and achieving superior performance (j. ferreira et al., 2020). to gain competitive advantage, organizations must neutralize threats, exploit market opportunities, and attain a cost level beyond their competitors' reach. j. barney (1991) asserts that a resource's value is contingent on its rarity, emphasizing that a competitive advantage is elusive if the resource is widely accessible to numerous competitors. this necessitates the resource's uniqueness to the company. however, the absence of rarity does not negate the relevance of a valuable resource to its possessor. amaya, bernal-torres, nicolás-rojas, and pando-ezcurra (2022) contend that valuable but non-rare resources still function as internal strengths for the company. the specificity and uniqueness of a resource to the company enhance its rarity. as highlighted by j. j. ferreira, fernandes, and ferreira (2022), a rare resource propels the company to a superior position compared to competitors, forming the foundation of a competitive advantage. limited research has explored the correlation between rarity and competitive advantage. in the realm of resourcebased entrepreneurship, adomako (2018) found a positive association between the rarity of resource-capability and entrepreneurial orientation leading to competitive advantage. semaan, beydoun, and mostapha (2020) conducted empirical research, establishing a positive influence of the rarity of organizational resource-capacity combinations on competitive advantage. additionally j. j. ferreira et al. (2022), scrutinized various resource attributes, confirming a significant and positive relationship between rarity and competitive advantage, alongside overall organizational performance. h2rarity positively influences competitive advantage. inimitable resource and competitive advantage the organization's resource, characterized by nonsustainability and inimitability, poses challenges for other entities to acquire or find suitable substitutes. when an organization possesses a rare or valuable resource, it functions as a catalyst for gaining a competitive advantage, especially if other organizations have not acquired the same resource or a close substitute. acquiring a valuable and rare resource that is easily imitated does not suffice for building a sustainable competitive advantage. therefore, it becomes imperative to possess not only a valuable and rare resource but also one that is inherently inimitable, preventing competing companies from reproducing it. only under these conditions can the maintenance of a competitive advantage be ensured. in alignment with this perspective, j. b. barney (1996) emphasizes the significance of inimitability within the resource-based view of the firm, stating that if other firms can acquire or develop the same resources as a firm possessing them and do so at a similar cost, these resources cannot be a source of competitive advantage for any firm. imitating these resources becomes arduous for organizations, particularly if they are costly for competing firms. when a company possesses such resources, it can potentially establish a near-permanent monopoly, as the resource remains difficult to imitate over an extended period. even legal protection adds an additional layer of complexity for organizations attempting to replicate these resources. according to the resource-based view, resources can attain inimitability based on the interplay of three factors: unique historical conditions (past choices), causal ambiguity (blurring between resource competitive advantage), and social complexity (the strength of the company's social network). sani, hassaballah, and hafiz (2014) employed quantitative research to establish a significant and positive correlation agbioforum, 25(2), 2023 | 183 aliane, gharbi, bouzguenda, seraj. — vrine in green: shifting towards a more ecological rbv theory between resource inimitability and sustainable competitive advantage. in a study focused on two kenyan universities, it is demonstrated that resource inimitability contributes to sustaining university competitiveness. cao, duan, and cadden (2019) asserted a positive association between the inimitability of information-processing capacity and competitive advantage based on their research results. more recently, amaya et al. (2022) conducted research affirming the crucial role of inimitability for a company seeking to uphold its competitive edge. h3inimitability positively influences competitive advantage. non-substitutable resource and competitive advantage j. barney (1991) defines non-substitutability as the quality of a resource being unmatched, rare, and inimitable. nonsubstitutability specifically denotes the incapacity of competitors to replicate a company's positional advantages or reproduce its products or services. the non-sustainability of resources implies the formidable challenge for an organization to maintain its competitive edge, as alternative resources cannot adequately replace the organization's performance (bekanwah & miidom, 2020). acquiring specific capabilities is crucial for organizations seeking a competitive advantage, and these organizational capabilities, being non-sustainable, are not strategically interchangeable ndegwa, kilika, and muathe (2018). non-sustainable capabilities hold less strategic importance for organizations, emphasizing the significance of acquiring final organizational capabilities for gaining a competitive advantage. these capabilities must strategically differentiate from those of competitors to be deemed non-substitutable (gumulya, purba, hariandja, & pramono, 2023). non-substitutable resources play a vital role in attaining sustainable competitive advantage, as empirically determined by hinterhuber (2013) and confirmed in indonesian research by guntoro and widiyanti (2021). recent research in malaysian high-tech manufacturing companies by vafaei-zadeh, madhuri, hanifah, and thurasamy (2024) affirms that nonsubstitutability significantly and positively impacts sustainable competitive advantage. thus, h4non-substitutable resource positively influences competitive advantage. ecological resource and competitive advantage an ecological resource is defined as the production or process, operation, or marketing of a product or service that, throughout its life cycle, leads to a reduction in environmental risks, pollution, and other adverse impacts on nature. to address the urgent need to preserve biodiversity and protect the environment, an ecological resource is deemed valuable, rare, inimitable, and nonsubstitutable, providing a foundation for a company to attain a sustainable competitive advantage that aligns with environmental benefits (dasgupta, 2021). in support of this perspective, camisón and puig-denia (2020) contend that advocates for the environmental ecosystem advocate for a novel approach in understanding the determinants of resource and capacity value. this necessitates not only a precise comprehension of the internal ecosystem but also an understanding of the natural ecosystem, as the biosphere generously provides resources to the company at minimal cost. the ecological responsibility of organizations often emerges as a decisive factor capable of influencing and shaping competitive advantages across various organizational types. ecological concerns, encompassing issues such as waste management, pollution, natural resource utilization, and energy consumption, concurrently impose constraints and present competitive opportunities. these factors play a pivotal role in enabling organizations to secure a competitive advantage (klemke-pitek & majchrzak, 2022). the escalating environmental degradation, pursuit of profit maximization, and the depleting availability of natural resources pose significant threats to the global population (hoang yen & hoang, 2023). while the traditional vrin attributes conceptualization remains crucial for ensuring sustainable competitive advantage, it is recognized as a necessary but insufficient condition for corporate sustainability, considering its economic, societal, and ecological implications (camisón & puig-denia, 2020). saunila and ukko (2013) advocate for the sustainable use of corporate resources and ecological support. past studies have affirmed the positive impact of ecological activities on competitive advantage (yadav, han, & kim, 2017). thus, h5ecological resource positively influences competitive advantage. figure 1: conceptual synthesis model. valuable resource rare resource inimitable resource nonsubstitutability resource resource ecological resource competitive advantage h1 h2 h3 h4 h5 agbioforum, 25(2): 180-192. ©2023 agbioforum methodology population and sampling techniques our quantitative study was conducted within six tunisian private clinics situated in the capital, tunis. a selfdistributed questionnaire was administered to 350 participants, encompassing administrative personnel (directors, human resources managers, procurement managers, engineers, and it specialists), medical professionals (general practitioners, specialists), and paramedical staff (nurses, orderlies, anaesthetists, paediatric technicians, midwives). the study achieved a response rate of 82.3%. the data underwent analysis using structural equation modelling through spss and amos version 23 software. choice of measurement scale the significance of information is contingent upon the thoughtful selection of measurement scales, necessitating their reliability and validity. in the ensuing discussion, we will elucidate the measurement scales pertaining to our six variables, as delineated in table 1. the arrangement of certain measurement scales has been tailored to align with our theoretical and practical requirements. this study utilized items related to the value and rarity of resources from newbert (2008), with three items dedicated to resource rarity and six items to resource value. additionally, items assessing the inimitability and non-substitutability of organizational resources were drawn from the work of morgan, vorhies, and schlegelmilch (2006), each comprising four items. the items concerning ecological resources were adapted from robertson and barling (2013). lastly, the sixitem scale measuring competitive advantage was adapted from čater and čater (2009). five-point likert scales were employed, prompting respondents to express their preferences on a spectrum from "strongly disagree" to "strongly agree." table 1 provides a comprehensive overview of the measurement scales incorporated into the research questionnaire, detailing the scales, the number of items they encompass, and their respective authors. table 1: summarizing table of the scales used. variables number of items corresponding sources value 6 newbert (2008) rarity 3 newbert (2008) inimitability 4 morgan et al. (2006) non-substitutability 4 morgan et al. (2006) ecology 10 robertson and barling (2013) competitive advantage 6 cater & cater (2009) measurement results exploratory analysis serves as a means to evaluate the precision of measurement scales, aiming to establish their reliability through a principal component analysis. subsequently, a confirmatory analysis was conducted as a secondary step to validate the findings derived from the exploratory data analysis. in the conclusive phase, structural equation models (sem) will be employed to examine the correlations existing among the six variables. results of confirmatory factor analysis as depicted in table 2 below, responses obtained from the questionnaires were bounded within a range of 1 to 5, with mean values spanning from 3.67 to 4.15 and standard deviations ranging from 1.135 to 1.289. furthermore, the first-order model exhibits an x²/ddl ratio of "2.663," well below the threshold of 3. the srmr yields a value of 0.026, and the rmsea indicates a value of 0.076, reflective of residuals approaching zero. the cfi, tli, nfi, and ifi present values of 0.938, 0.930, 0.904, and 0.938, respectively, in close proximity to 1. these findings suggest that the modifications implemented in our model are reasonably acceptable. figure 2: the standardized regression weights of the first-order model. upon further examination of table 2 , it is evident that the skewness and kurtosis coefficients align with the null hypotheses proposed by kline (2015), showcasing satisfactory values. in light of these findings, it is observed that all distributions and variables maintain an equitable distribution (table 2). agbioforum, 25(2): 180-192. ©2023 agbioforum table 2: desc. st. ≤ ≥ m sd skew[x] ku v1 1,0 5,0 4.00 1.233 -1.181 .360 v2 1,0 5,0 4.02 1.237 -1.216 .416 v3 1,0 5,0 3.96 1.259 -1.163 .307 v4 1,0 5,0 3.95 1.216 -1.107 .257 v5 1,0 5,0 3.95 1.251 -1.144 .272 v6 1,0 5,0 3.90 1.230 -1.097 .266 r7 1,0 5,0 3.73 1.213 -.925 .058 r8 1,0 5,0 3.84 1.228 -1.080 .290 r9 1,0 5,0 3.74 1.218 -.985 .159 i10 1,0 5,0 3.68 1.234 -.945 .070 i11 1,0 5,0 3.68 1.264 -.952 .013 i12 1,0 5,0 3.67 1.252 -.933 .012 i13 1,0 5,0 3.67 1.229 -1.015 .199 n14 1,0 5,0 3.89 1.256 -1.097 .220 n15 1,0 5,0 3.86 1.239 -1.029 .124 n16 1,0 5,0 4.01 1.234 -1.219 .462 n17 1,0 5,0 3.98 1.246 -1.232 .530 e18 1,0 5,0 3.99 1.245 -1.180 .357 e19 1,0 5,0 4.01 1.249 -1.309 .666 e20 1,0 5,0 3.93 1.209 -1.086 .280 e21 1,0 5,0 3.93 1.233 -1.113 .265 e22 1,0 5,0 3.91 1.135 -1.003 .338 e23 1,0 5,0 3.86 1.213 -.945 .009 e24 1,0 5,0 3.98 1.248 -1.126 .218 e25 1,0 5,0 3.86 1.253 -.956 -.070 e26 1,0 5,0 3.98 1.198 -1.184 .497 e27 1,0 5,0 3.94 1.182 -1.179 .588 ca28 1,0 5,0 4.07 1.215 -1.465 1.179 ca29 1,0 5,0 4.09 1.226 -1.463 1.093 ca30 1,0 5,0 4.11 1.289 -1.452 .873 ca31 1,0 5,0 4.15 1.256 -1.529 1.143 ca32 1,0 5,0 4.12 1.270 -1.546 1.206 ca33 1,0 5,0 4.03 1.256 -1.430 .965 convergent and discriminant validity of measurements after establishing the outcomes of the confirmatory factor analysis, the subsequent step involves assessing the correlation among variable items. to achieve this, the calculation of convergent validity, through the cr, becomes imperative. the cr values should exceed 0.70, accompanied by an ave value surpassing 0.50. regarding discriminant validity, the square root values should surpass the shared correlation among the variables. the values presented in table 3 below indicate that discriminant validity was upheld for all six variables. table 3: convergent and discriminative validity (developed by authors). factors cr1 ave2 msv3 asv4 1 2 3 4 5 6 value newbert (2008) (α = 0.953) .953 .771 .848 .805 .878 rarity newbert (2008) (α = 0.913) .914 .779 .795 .754 .889** .882 inimitability morgan et al. (2006) (α = 955) .955 .842 .786 .740 .887** .829** .917 non-substitutability morgan et al. (2006) (α = 0.905) .905 .704 .850 .814 .921** .892** .865** .839 ecology robertson and barling (2013) (α = 0.958) .956 .687 .885 .796 .892** .860** .855** .912** .828 competitive advantage cater and cater (2009) (α = 0.965) .964 .816 .885 .814 .909** .874** .865** .922** .941** .903 in accordance with the guidance provided by fornell and larcker (1981), the correlation coefficients among variables ought to surpass the off-diagonal values. this signifies that the factors' discriminant validity has been duly maintained. table 4: correlations (developed by spss). val rar inimita nonsub ecolo compadv val pearson correlation 1 sig. (2-tailed) n 288 rar pearson correlation .889** 1 sig. (2-tailed) .000 n 288 288 inimita pearson correlation .887** .829** 1 sig. (2-tailed) .000 .000 n 288 288 288 nonsub pearson correlation .921** .892** .865** 1 sig. (2-tailed) .000 .000 .000 n 288 288 288 288 ecolo pearson correlation .892** .860** .855** .912** 1 sig. (2-tailed) .000 .000 .000 .000 n 288 288 288 288 288 compadv pearson correlation .909** .874** .865** .922** .941** 1 sig. (2-tailed) .000 .000 .000 .000 .000 n 288 288 288 288 288 288 1 cr = composite reliability 2 ave = average variance extracted 3 msv = maximum shared value 4 asv=average shared value agbioforum, 25(2): 180-192. ©2023 agbioforum following the assessment of both reliability and validity, structural equation modelling becomes essential to scrutinize the impact of our five independent variables on competitive advantage. the model exhibits a chi-square ratio on its x²/ddl degree of freedom amounting to 2.454, a highly acceptable result as it is below 3. regarding the rmsea index, it stands at 0.071, indicating a very acceptable proximity to zero. additionally, the indices nfi = 0.959, tli = 0.961, ifi=0.987, rfi=0.931, and cfi = 0.986 all align with the values acknowledged in the literature to denote a highly satisfactory fit. the srmr registers at 0.0183, which is deemed tolerable as it is also in close proximity to zero. figure 2: the final model. the findings of this study demonstrate a positive influence of valuable resources on competitive advantage (β= +0.269, p < 0.001***), indicating a statistically significant impact. moreover, the rarity of resources exhibits a significant and positive effect on competitive advantage (β = +0.123, p < 0.001***). similarly, the inimitable nature of resources significantly and positively influences competitive advantage (β= + 0.152, p < 0.001***), while the non-substitutable aspect of resources demonstrates a significant and positive impact on competitive advantage (β= + 0.342, p < 0.001***). additionally, our findings reveal a robust association between ecological resources and competitive advantage (β= + 0.859, p < 0.001***). to assess the robustness of the structural model, we computed the r². the coefficient reveals a significant and substantial value of 0.917 (refer to table 5), encompassing five independent variables: value, rarity, inimitability, nonsubstitutability, and ecological aspects of the resource affecting competitive advantage. thus, these variables collectively account for approximately 91.7% of the variance in competitive advantage within the regression model. notably, the empirical findings affirm a positive relationship between valuable resources and competitive advantage (β= +0.269, p < 0.001***), corroborating the results observed in studies by newbert (2008), talaja (2012), and zvarimwa and zimuto (2022). resource rarity positively impacts competitive advantage (β = +0.123, p < 0.001***), aligning with findings from prior studies conducted by adomako (2018), semaan et al. (2020), and j. j. ferreira et al. (2022). similarly, the inimitable resource demonstrates a significant and positive influence on competitive advantage (β= + 0.152, p < 0.001***), confirming the empirical trend observed in previous research. sani et al. (2014); cao et al. (2019); amaya et al. (2022). moreover, the non-substitutable resource significantly and agbioforum, 25(2), 2023 | 187 aliane, gharbi, bouzguenda, seraj. — vrine in green: shifting towards a more ecological rbv theory positively influences competitive advantage (β= + 0.342, p < 0.001***), aligning with the findings of hinterhuber (2013), guntoro and widiyanti (2021), and vafaei-zadeh et al. (2024). lastly, the ecological resource, proposed as an additional attribute in j. barney (1991) rbv, exhibits a remarkably strong, significant, and positive impact compared to all other attributes on competitive advantage (β= + 0.859, p < 0.001***), as highlighted by bhandari, ranta, and salo (2022). furthermore, within the regression model and utilizing the ecological attribute as a predictor, we can elucidate approximately 88.5% of the variance in competitive advantage (refer to r² in table 6). table 5: robustness of the structural model (developed by spss). model r r square adjusted r square std. error of the estimate change statistics r square change f change df1 df2 sig. f change 1 .958a .917 .916 .33557 .917 624.769 5 282 .000 a. predictors: (constant), ecolo, inimita, rar, val, nonsub table 6: r² of the ecological resource variable in relation to competitive advantage. model r r square adjusted r square std. error of the estimate change statistics r square change f change df1 df2 sig. f change 1 .941a .885 .884 .39290 .885 2198.376 1 286 .000 a. predictors: (constant), ecolo discussion the study examined the impact of resources (value, rarity, inimitability, non-substitutability, and ecology) on competitive advantage, specifically exploring the addition of the ecological attribute (e) to re-evaluate rbv from an environmental standpoint. conducted through a quantitative survey among six tunisian private clinics in the capital tunis, the results demonstrated a positive effect of value on competitive advantage, aligning with prior research (zvarimwa & zimuto, 2022). the findings suggest that respondents believe their organizations can easily access resources held by competitors, reducing the cost of utilizing these resources. leveraging such resources allows organizations to better exploit market opportunities, enhance performance, compete effectively, and address environmental threats, both internal and external. the study's results underscored a positive relationship between resource rarity and competitive advantage. this indicates the significance of resource rarity for organizations to attain a competitive advantage and outperform other industry competitors. past research by semaan et al. (2020) aligns with these findings. several reasons might explain these results. respondents may perceive their organization as effectively utilizing organizational capabilities compared to other companies. the organization's distinctive approach to resource utilization, particularly in cost reduction, market exploitation, and competitive scenarios, could contribute to this outcome. effectively managing resources is crucial for survival in a competitive market. respondents also believe that their organization excels in resource utilization when faced with strong threats or opportunities, optimizing operational costs. the assessment of organizational performance includes an examination of the costs incurred in achieving organizational objectives. additionally, organizations deploy resources in a distinctive manner to enhance performance relative to competitors and to streamline operational costs. ultimately, the strategic and unique utilization of organizational resources is crucial for optimizing organizational opportunities. the study results also indicated a positive correlation between inimitability and competitive advantage, aligning with the research findings of amaya et al. (2022). this alignment suggests that competitors encounter significant challenges in attempting to replicate the organization's resources. furthermore, none of the rival organizations possess the capability to duplicate the specific resources essential for business operations. in essence, acquiring the resources of the organization proves exceedingly difficult for competing firms, making it nearly impossible for them to emulate the organization's resource base. the study's findings also indicated that non-substitutability positively influences organizational competitiveness. this is attributed to the absence of available substitutes for the unique combination of resources possessed by the organization. the organization demonstrates the capacity to manage a diverse range of resources through various means. there is a prevailing belief within the organization that utilizing a varied set of resources for business operations could lead to unfavourable outcomes. additionally, organizational decision-makers emphasize that achieving success in business is contingent upon utilizing the organization's resources, and these resources must be employed in diverse compositions. effectively leveraging organizational resources requires a skilled human resource, as highlighted in the study conducted by vafaei-zadeh et al. (2024). ultimately, the study results underscored the significance of the environment for organizational success and competitive advantage. the findings revealed a positive impact of ecology on competitive advantage, aligning with the results presented by yadav et al. (2017) in their study. the potential rationale for these findings lies in the respondents' strong sense of environmental passion. these employees consistently exhibit environmentally friendly behaviour while working within the organization. they believe their organization possesses environmentally friendly resources, making it nearly impossible to harm the environment through organizational activities. moreover, the respondents perceive competing firms as less environmentally friendly compared to their own organization. they actively engage in discussions about agbioforum, 25(2), 2023 | 188 aliane, gharbi, bouzguenda, seraj. — vrine in green: shifting towards a more ecological rbv theory environmental issues with both internal and external stakeholders, as well as within their industry. their organizational strength lies in their commitment to environmental responsibility, taking measures to minimize environmental impact. additionally, these employees voluntarily participate in environmental groups, highlighting the importance of the environment to them. they invest time and resources to contribute to environmental preservation, showcasing their dedication to the organization. implications, limitations and future research this paper contributes both theoretically and managerially, advancing the broader literature and particularly enriching j. barney (1991) resource-based perspective. a distinctive feature of this study is its accomplishment in consolidating all resources into a comprehensive model and empirically assessing their respective impacts on the competitive advantage of six tunisian private clinics. the examination in this study delineates the portion of competitive advantage explicated by the five independent variables: value, rarity, inimitability, non-substitutability, and resource ecology. moreover, the findings of this research stand as a testament to the importance of endorsing sustainable use of corporate resources and supporting ecological initiatives. the outcomes of our investigation affirm the viability of the proposed conceptual model, establishing a noteworthy precedent as one of the few studies illustrating the significant and positive influence of vrine resources on competitive advantage. in managerial terms, this study emphasizes the need for eradicating detrimental stereotypes. specifically, outdated views treating environmental management as a mere expense should be replaced with a strategic perspective acknowledging its potential for competitive advantage. decision-makers should recognize that adopting an environmental resource can result in either cost efficiency or enhanced differentiation. the study underscores the significance of on-site visits to clinics as pivotal actions for improving energy efficiency. the study shares common limitations with other empirical research endeavours. while it successfully attained its objectives and addressed the research question, certain constraints should be acknowledged. the survey focused exclusively on a limited geographic area, specifically the six private clinics in the capital, tunis. this localized approach hinders the generalizability of the findings. subsequent studies should expand the sample size by incorporating a more extensive range of clinics to enhance the depth of insights. furthermore, this research relied on quantitative analysis; future investigations could adopt a mixed-methods approach for a more comprehensive examination. the study's scope was confined to tunis, and future research could apply the same model to a broader south asian context. additionally, the present study employed amos for data collection, while future research might explore alternative tools such as process macros or smart pls 4 for data analysis. in subsequent research endeavours, it would be valuable to elucidate the factors contributing to the non-application of procedures, while concurrently examining the affective, normative, and calculative dimensions of commitments among companies that adhere to environmental procedures in their pursuit of environmental sustainability. acknowledgment this work was supported by the deanship of scientific research, vice presidency for graduate studies and scientific research, king faisal university, saudi arabia [grant 6043]. references adomako, s. 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(2022). valuable, rare, inimitable, non-substitutable and exploitable (vrine) resources on competitive advantage. international journal of business & management sciences, 8(1), 9-22. doi: https://doi.org/10.53555/ephbms.v8i1.1915 https://www.researchgate.net/profile/nadine-semaan/publication/343179803 https://www.researchgate.net/profile/nadine-semaan/publication/343179803 https://www.ceeol.com/search/article-detail?id=86182 https://www.ceeol.com/search/article-detail?id=86182 https://doi.org/10.1109/tem.2024.3355775 https://doi.org/10.1002/bse.1921 https://doi.org/10.3389/fpsyg.2022.836241 https://doi.org/10.53555/ephbms.v8i1.1915 agbioforum, 25(2), 2023 | 192 appendix 1: measurement scales abr. item reference value 1 given the resources my firm possesses and has access to, if my firm possessed other newbert (2008) 2 given my firm’s capabilities, if my firm possessed or had access to other resources it could reduce its costs further 3 given the resources my firm possesses and has access to, if my firm had access to other capabilities, it could better exploit targeted market opportunities 4 given my firm’s capabilities, if my firm possessed or had access to other resources it could better exploit targeted market opportunities 5 given the resources my firm possesses and has access to, if my firm had access to other capabilities, it could better defend against known competitive threats 6 given my firm’s capabilities, if my firm possessed or had access to other resources it could better defend against known competitive threats rarity 1 compared to companies with similar capabilities, my firm uses them to exploit very different resources when attempting to reduce costs, exploit market opportunities, and/or defend against competitive threats newbert (2008) 2 compared to companies that possess or have access to similar resources, my firm exploits them with very different capabilities when attempting to reduce costs, exploit market opportunities, and/or defend against competitive threats 3 compared to my firm’s competitors, my firm exploits very unique combinations of resources and capabilities when attempting to reduce costs, exploit market opportunities, and/or defend against competitive threats inimitability 1 competitors find it very difficult to match our export venture's resources (morgan et al., 2006) 2 no competitor could replicate our mix of export resources 3 acquiring export resources similar to ours is not difficult (reverse scored) 4 competitors never seem to match our export venture's resources non-substitutability 1 there is no substitute for our mix of export resources (morgan et al., 2006) 2 you can always overcome having a different mix of export resources somehow 3 having a different mix of export resources would be disastrous 4 you cannot succeed without having our mix of export resources ecology 1 i'm passionate about the environment. (robertson & barling, 2013) 2 within my company, i like to adopt environmentally friendly behaviours 3 our organizational resources are environmentally friendly 4 i am proud to belong to an environmentally friendly company 5 our competitors are not as environmentally friendly as we are 6 i enthusiastically discuss ecological issues with other people from companies in the same sector as us 7 at company level, respect for the environment is our strength 8 i am a volunteer member of an environmental group 9 i have voluntarily donated time or money to help the environment in some way 10 i am very committed to my environmental values competitive advantage 1 our prices per unit of product/service are lower than our competitors' prices (čater & čater, 2009) 2 we will continuously improve our cost efficiency 3 we are cost-efficient 4 compared to our competitors' products, the quality of our products/services is better 5 compared to our competitors, we are faster in meeting our customers' needs 6 compared to our competitors, we are more flexible in meeting our customers' needs agbioforum, 25(1): 229-241. ©2023 agbioforum impact of military expenditure on biodiversity loss: worldwide evidence muzafar shah habibullah* putra business school, malaysia email: muzafar@putrabs.edu.my baharom abdul hamid inceif – the global university of islamic finance, malaysia email: baharom@inceif.org nur ameera a jaz university of malaya, malaysia email: nurameeraajaz@um.edu.my nur surayya mohd saudi national defence university malaysia, malaysia email: nursurayya@upnm.edu.my the potential impact of military operations, whether occurring in times of armed conflict or during periods of peace, has been recognised as a potential factor in environmental deterioration. this study investigates the correlation between military spending and the decrease in biodiversity within a dataset comprising 112 countries. the utilisation of the quantity of endangered species functions as a proxy indicator for the diminishment of biodiversity. in addition to the allocation of funds towards military expenditures, the current study incorporates various control variables such as income, population size, and the quality of governance. we employed a combination of static and dynamic panel data estimation methodologies to estimate our model. the fixed effects model is commonly favoured over alternative models, including pooled ordinary least squares, random effects, differencegmm, and system-gmm. based on the results of our research, the fixed effects model demonstrates an inverse correlation between military expenditure and the depletion of biodiversity. a 1% increase in military expenditure, as a proportion of the gross domestic product (gdp), is associated with a subsequent increase of 0.24% in the depletion of biodiversity. contrarily, a rise of 1% in both income and population yields a reduction in biodiversity of 0.75% and 2.31%, respectively. on the contrary, a marginal increase of 1% in the government efficiency index is associated with a corresponding decrease in the rate of biodiversity loss by 0.22%. based on the findings of our research, it is advisable for governments to contemplate the use of militarism as a policy instrument in order to safeguard environmental preservation. the integration of environmental factors into military policies and overarching frameworks necessitates cooperative endeavours involving local governments and international organisations. to address the issue of reliance on limited resources, it is crucial to embrace an environmentally conscious approach when designing and manufacturing defensive equipment. furthermore, the adoption of strategies aimed at limiting armed conflicts and interstate disputes, coupled with the efficient coordination of military campaigns and their scale, has the potential to alleviate the negative consequences for biodiversity arising from militaristic activities. keywords: biodiversity loss, threatened species, military expenditure, static and dynamic panel, worldwide evidence introduction the task of effectively managing the diverse and abundant natural resources present in our global environment is increasingly intricate and challenging. the degradation of worldwide ecosystems and the escalating pace of species extinction are outcomes of environmental challenges, particularly those that surpass political boundaries, such as the depletion of biodiversity. biodiversity, also known as biological diversity, is defined as the assortment of differences exhibited among living organisms that arise from diverse sources. this includes terrestrial, marine, and other aquatic ecosystems, as well as the interconnected ecological systems they comprise. this encompasses the variability observed within populations of a given species, as well as the differences observed between various species, and the variations observed across different ecosystems. biodiversity plays a crucial role as the fundamental underpinning for all life forms on earth. backhaus, snape, and lazorchak (2012) argue that the implementation of an "insurance policy" involves mitigating the likelihood of significant changes occurring in ecosystems, which are of paramount importance in the advancement of human development. the intrinsic worth of biodiversity is widely acknowledged, and it serves a vital function in supporting human survival through the provision of fundamental resources, including nourishment, healthcare, and housing. the available resources encompass a diverse array of commodities, such as agricultural goods, seafood, timber, pharmaceuticals, and wool, among various others. one additional role of biodiversity is to uphold the integrity, abundance, and resilience of the ecosystem by means of regulating and recycling essential elements, including air, soil, and water, which are vital for human sustenance. despite numerous efforts and policy interventions aimed at the conservation of biodiversity, the decline in biodiversity is not a recent occurrence and has consistently constituted a significant and pressing issue that necessitates immediate attention from humanity. this study employed the count of endangered species as a surrogate indicator to assess the decrease in biodiversity, considering that biodiversity encompasses the entirety of living organisms on the planet. according to statistical data, there is a projected increase in the global number of threatened species to 42,108 by the year 2022, in comparison to the recorded figure of 16,306 in 2007 (refer mailto:baharom@inceif.org mailto:nurameeraajaz@um.edu.my mailto:nursurayya@upnm.edu.my agbioforum, 25(1), 2023 | 230 habibullah, abdul hamid, a jaz, saudi _ impact of military expenditure on biodiversity loss: worldwide evidence to figure 1). the findings of the analysis on endangered species categorization indicate that plants demonstrate the greatest degree of susceptibility, followed by vertebrates, invertebrates, fungi, and protists (iucn, 2022). figure 1: global number of threatened species by groups. source: iucn, 2022 the decline in biodiversity and its associated environmental threats have been attributed, in part, to the operational activities of the military sector. according to hanson et al. (2009), areas exhibiting substantial biodiversity, commonly known as biodiversity hotspots, were identified as the setting for more than 90% of significant armed conflicts that transpired from 1950 to 2000. moreover, it was noted that a majority exceeding 80% of these conflicts occurred within the confines of these designated areas of heightened tension. within this specific time frame, a minority of the 34 designated hotspots, specifically less than one-third, were granted exemption from significant acts of violence. however, the majority of these locations witnessed repeated occurrences of violent events. unfortunately, this propensity has persisted over the course of the past five decades. the notable disturbances exert a substantial influence on the topography, leading to heightened difficulties in the restoration of its initial state prior to the disruptions. generally, militarism has maintained a consistent level of importance throughout historical periods. however, it is noteworthy that the environmental consequences resulting from militarised activities have experienced an increase following the culmination of world war ii (gokmenoglu, taspinar, & rahman, 2021). the phenomenon of governments giving higher priority to militarization during periods of conflict was further exacerbated by the escalating global arms race, thereby exacerbating the issue and transforming it into a contentious competition among nations. concurrently, the military domain has experienced substantial structural changes as a result of technological advancements in both military operations and logistics. as a result, the advancement of increasingly complex and expensive armaments necessitates a rise in the demand for additional fossil fuel utilisation, thereby rendering military operations more reliant on resources (kentor, jorgenson, & kick, 2012). according to singer and keating (1999), the phenomenon of militarization has been found to have adverse consequences for the environment. these include the depletion of natural resources, deforestation, and the introduction of radioactive and hazardous materials, thereby leading to pollution. an additional attribute of the correlation between military activities and environmental challenges is the broadened scope of negative consequences resulting from military operations, which surpass instances of armed conflicts or wars. despite the absence of armed conflict, the military sector continues to exert a substantial impact on environmental pollution through its regular operations (jorgenson, 2005; smith, hooks, & lengefeld, 2014; york, 2014). the integrity of biodiversity in terms of its structure and function, which play a crucial role in sustaining numerous plant and animal species, has been adversely affected by a range of factors. these include the advancement of novel military technologies, the demand for resources to sustain military equipment and facilitate weapon testing, as well as the movement of soldiers and weaponry. in light of these circumstances, it is imperative to determine the quantity of endangered species that are in jeopardy, with the purpose of assessing the potential extent of biodiversity decline arising from military activities. the subject matter has garnered increased attention, notwithstanding the limited scientific evidence currently accessible within this specific field of research. to the best of our current knowledge, previous scholarly investigations have not explored the relationship between military spending and the population of endangered species. prior research has predominantly concentrated on various environmental indicators, such as carbon emissions and ecological footprints. furthermore, recent studies have indicated that employing the count of endangered species as a surrogate indicator for measuring the decline in biodiversity could yield a more precise evaluation of the ecological consequences, particularly in the context of expansive military installations and activities that contribute to the reduction of biodiversity. 5,742 7,250 8,374 10,739 2,108 3,570 4,893 6,161 8,447 9,390 12,505 24,914 9 9 49 294 16,306 20,219 25,821 42,108 2007 2012 2017 2022 vertebrates invertebrates plant fungi & protists total agbioforum, 25(1), 2023 | 231 habibullah, abdul hamid, a jaz, saudi _ impact of military expenditure on biodiversity loss: worldwide evidence the primary aim of this study is to investigate the influence of military spending on the reduction of biodiversity within the global economic framework. this study employs two methodologies: static panel data methods and dynamic panel data approaches. the static panel data methodologies encompass three main models: pooled ordinary least squares (pols), random effect (re), and fixed effect (fe) models. in contrast, the examination of the dynamic approach involved the utilisation of both differencegeneralized method of moments (d-gmm) and systemgmm techniques. to accomplish this aim, we utilised a panel data set comprising 112 countries across the time period from 2013 to 2020 to evaluate the influence of military expenditure on the occurrence of biodiversity decline. this study incorporates supplementary explanatory variables, namely income, population, and governance indicators. this study additionally integrates a thorough evaluation of resilience by employing multiple governance metrics. similarly, the anticipated results of the macro-level crossnational study are projected to yield significant policy implications regarding the notion of human security, encompassing aspects beyond the realm of state border safeguarding. this study will offer substantial value to environmental practitioners and policymakers engaged in the formulation of environmental laws and policies that incorporate the element of militarization, despite its intrinsically unproductive nature. the subsequent sections of this piece are structured in the following manner: the following section conducts a comprehensive examination of the current body of literature regarding militarism and its implications for the environment. section 3 delves into the empirical model and methodology employed in this study. following that, the findings obtained from the study are presented in section 4. section 5 of this study presents a comprehensive overview of our analysis and puts forth policy recommendations that are derived from the findings. literature review the adoption of a human security perspective can help with the analysis and resolution of modern challenges that people and communities are facing in the twenty-first century, such as global environmental change. a significant aspect within the domain of international relations theory pertains to the identification and analysis of national security. the core foundation of international philosophy is grounded in the notion of inter-national connections (wolfers, 1962). military strategy is a further notable understanding of security within the field of international relations theory, with the realist viewpoint having a strong influence. the domain of security studies has exhibited a strong correlation with advancements in military technology, encompassing the evolution of offensive and defensive armaments. scholarly literature has established a correlation between military strategy and deterrence theory and arms control (brodie & dunn, 1946). the emergence of the concept of deterrence can be attributed to the strategic response aimed at predicting and preventing a potential large-scale nuclear conflict between the united states and the soviet union, following the development and deployment of nuclear weapons. buzan (1983, 1991) endeavoured to broaden the purview of security by incorporating non-military variables. similarly, haq (1995) posited that the prioritisation of individuals should be emphasised in the pursuit of security, rather than solely relying on a nation's military capabilities or security measures. furthermore, following the culmination of the cold war, scholarly analyses of security underwent a significant shift away from the traditional emphasis on national security, predominantly influenced by neo-realist viewpoints (mearsheimer, 2001; walt, 1998; waltz, 2010). consequently, a more expansive understanding of security emerged, encompassing dimensions that extend beyond the boundaries of the nation-state. following the disintegration of the soviet union, there emerged a notable redirection of attention towards alternative security challenges that had hitherto been disregarded. the aforementioned transition was accompanied by endeavours to diverge from the dominant security orthodoxy, which predominantly revolved around the notion of conflict between major global powers (hampson & daudelin, 2002; tadjbakhsh & chenoy, 2007). the concept of environmental security is complex and can be interpreted in various ways. realism, the dominant theoretical framework in the field of security studies, conventionally places the state at the core of analysis and argues that security is achieved through the application of military force or the prevention of potential threats. from a realist standpoint, environmental issues are commonly classified as "low" politics, in contrast to "high" politics that predominantly revolve around security concerns. realist scholars frequently construct a hierarchical categorization of threats, distinguishing between those that can be legitimately incorporated into the security agenda and those that cannot (krause & williams, 1996; rothschild, 1995). the perspectives of constructivists and poststructuralists, who argue that hazards are socially constructed, have presented a challenge to the limited realism viewpoint. barry buzan, ole waever, and jaap de wilde, three renowned academics who led the copenhagen school, developed a remarkably inventive and intellectually challenging conceptual framework to understand the social construction of security concerns (buzan, wæver, & de wilde, 1998). furthermore, the cautionary message conveyed by this study regarding the potential risks of framing environmental issues from a security perspective has exerted a substantial impact on political and intellectual discourse. in accordance with the theoretical framework of securitization, it can be argued that there are presently no imminent and concrete threats. if a political community effectively redefines a specific issue as a matter of security through a speech act that alters the way the issue is approached, a wide range of issues may be perceived as security concerns. the concept of security is commonly understood as a social phenomenon rather than being purely theoretical or static in nature. a novel agbioforum, 25(1), 2023 | 232 habibullah, abdul hamid, a jaz, saudi _ impact of military expenditure on biodiversity loss: worldwide evidence approach to analysing discourse on environmental security entails investigating the manner in which security concerns are constructed through discourse. according to brandão (2014), the critical perspective presents an alternative method for tackling environmental concerns. this perspective places emphasis on the necessity of ensuring the security of the environment, rather than framing it solely within the context of securitization. from this particular standpoint, the environment assumes a pivotal role of utmost importance, surpassing the state as the primary focal point. furthermore, the environment is understood in the context of its human inhabitants. the critical perspective advocates for a departure from security frameworks that prioritise militaristic approaches in favour of a strategy that prioritises addressing the root causes of environmental degradation. within this particular context, the incorporation of environmental security is encompassed within the wider framework of human security. in the words of elliott (2004), the prioritisation of preserving surrounding ecosystems is crucial for ensuring environmental security, as the well-being of humans is intricately interconnected with these ecosystems. previous empirical studies have demonstrated a positive correlation between increased militarism and its impact on the environment. carbon emissions are frequently employed as a primary environmental indicator for evaluating the effects being examined. according to a study by jorgenson and clark (2016), there is a positive correlation between rising military spending and higher levels of carbon emissions in both oecd and non-oecd nations. the research employs a sample of 81 countries, covering the time frame from 1990 to 2010. in order to analyse the environmental model, the prais-winsten regression model is employed, incorporating panelcorrected standard errors (pcse). the findings of this study indicate that a slight augmentation of 1% in military spending as a proportion of the total gross domestic product (gdp) results in a corresponding increase in emissions of 0.068% and 0.250% for non-organisation for economic cooperation and development (oecd) and oecd nations, respectively. through a thorough panel analysis, the research by afia and harbi (2018) revealed a notable correlation between the militarization process and carbon emissions. the result is obtained from a dataset comprising 120 countries across the time period from 1981 to 2015. the present study employed a multivariate cointegration technique to examine the direct and indirect impacts of military expenditure on carbon emissions. this study operationalizes the notion of direct impact as the degree of influence that military expenditure exerts on carbon emissions. in contrast, the concept of indirect impact is defined and measured as the resultant outcome arising from the combined influence of military expenditures on income and income on carbon emissions. the available empirical evidence suggests that there is a discernible positive relationship between military expenditure and carbon emissions per capita. this implies that both direct and indirect effects of military expenditures have an influence on overall environmental sustainability. bradford and stoner (2017) conducted a study wherein they observed a significant and positive correlation between military expenditure levels and per capita carbon emissions. the results obtained from the analysis of panel data indicate that the initial relationship displayed a relatively weaker and more varied pattern. however, over time, there has been an observed trend of increasing strength in the relationship. this analysis provides additional evidence to support the notion that the degree of economic development within a country plays a moderating role in the correlation between military spending and carbon emissions per person. more developed nations exhibit significantly larger net effects stemming from their military expenditures. however, the existing data suggest that the temporal consistency observed in the correlation between military expenditure and carbon emissions is a relatively recent occurrence, as there was a less pronounced connection between these two factors prior to the 1990s. furthermore, bildirici (2017a) research showed a link between military spending and carbon emissions in the g7 nations. the analysis in question was carried out over a span of thirty years, specifically from 1985 to 2015. the methodology employed for this analysis was the panel autoregressive distributed lag (pardl) approach. the results of this study suggest that there are significant connections, both in the short-term and long-term, between military spending and carbon emissions. the findings of the causality analysis demonstrate the presence of a distinct causal link between carbon emissions and military expenditure. the study additionally demonstrated that for the purpose of efficiently mitigating carbon emissions, it is crucial for the g7 countries to abandon militaristic practices, thereby decreasing energy consumption per unit. the united states also demonstrates environmental repercussions stemming from its military activities. bildirici (2017b) conducted a study that investigated the long-term trends and underlying determinants of carbon emissions, militarism, economic growth, and energy consumption from 1960 to 2013. the bound test approach for cointegration was utilised to determine the presence of a relationship, both in the short-term and long-term, between the variables being examined. the present analysis has unveiled a significant and robust positive correlation, suggesting a strong association between carbon emissions and militarization. the f tests conducted by rao yielded evidence supporting the presence of unidirectional causality in cases where there is no feedback loop connecting militarism to carbon emissions, energy consumption to carbon emissions, and militarization to energy consumption. the research findings demonstrate that there is a significant relationship between militarism and energy consumption, which collectively explain 26% and 60% of the observed variations in carbon emissions, as evidenced by the forecast-error analysis. in an independent study conducted in the united states, bildirici (2017c) investigated the correlation between militarism and carbon agbioforum, 25(1), 2023 | 233 habibullah, abdul hamid, a jaz, saudi _ impact of military expenditure on biodiversity loss: worldwide evidence emissions. the study utilised a dataset covering the period from 1984 to 2015 and employed several estimation techniques, including ardl, dynamic ols (dols), canonical cointegration regression (ccr), and fully modified ols (fmols). the results of the study revealed that the presence of militarism had a detrimental effect on carbon emissions. the levels of carbon emissions, nitrous oxide, and methane in african countries show the detrimental effects of militarism on environmental welfare. domguia and poumie (2019) conducted a study that investigated the correlation between military expenditure and environmental degradation in a sample of 54 african countries from 1980 to 2016. based on the results derived from the generalised method of moment (gmm), it can be inferred that all the environmental indicators demonstrate statistical significance at a significance level of 1%. the capacity of these nations to efficiently curtail or diminish military outlays is pivotal for the preservation of an environmentally sustainable state. similarly, the allocation of financial resources towards military endeavours has led to a significant increase in carbon emissions among affluent mediterranean countries, such as greece, france, italy, and spain. erdogan, gedikli, çevik, and öncü (2022) employed the global vector autoregression methodology to conduct their analysis, utilising annual data from 1965 to 2019. the nations were chosen solely based on their comparatively high levels of carbon and greenhouse gas emissions. furthermore, it is noteworthy that france and italy demonstrate a significant commitment to their military expenditures by allocating the highest financial resources among all countries. this study further highlights the importance of approaching the topic with appropriate gravity, as the increasing levels of military spending appear to have a significantly adverse effect on the environment. in contrast, a positive correlation between military expenditure and carbon emissions was discovered by zandi, haseeb, and zainal abidin (2019) in a separate panel study conducted on six asean countries. the data spanning from 1995 to 2017 is subjected to analysis using the fully modified ordinary least squares (fmols) and dynamic ordinary least squares (dols) methodologies. the analysis of both methodologies reveals a discernible correlation between military expenditure per unit and fluctuations in carbon emissions, indicating a positive relationship. the observed relationship between an increase in military expenditure per unit and alterations in carbon emissions is demonstrated by the corresponding methodologies, indicating changes of approximately 0.33 units and 0.38 units, respectively. in the specific context of pakistan, the existing body of research investigating the ecological footprint as a metric for assessing the environmental ramifications of militarism has been relatively scarce. the increase in military spending has led to a proportional increase in energy consumption, thereby contributing to a substantial environmental impact. ahmed et al. (2020) conducted a study that examined a dataset covering the period from 1971 to 2016. the researchers employed bootstrap causality and cointegration test techniques in their analysis. the study's findings are supported by the observation that the pakistani military heavily depends on fossil fuels and operates across a substantial geographical area. the present study, conducted by gokmenoglu, taspinar, and rahman (2021), investigates the correlation between military expenditure and carbon emissions within the context of turkey. the researchers employ the fully modified ordinary least squares (fmols) estimator and the toda and yamamoto (1995) causality test to examine the dataset covering the time period from 1960 to 2014. the analysis unveiled a significant positive correlation between military expenditure and the exacerbation of environmental degradation. in a recent empirical study by eregha, vo, and nathaniel (2022), the researchers looked at the relationship between military spending and the ecological footprint using the bootstrap causality test and the maki (2012) cointegration test while also taking various structural breakdowns into account. the study's findings demonstrated a positive correlation, suggesting that there is a tendency for military expenditures to increase the ecological footprint. moreover, it is important to acknowledge that energy consumption and economic growth have a detrimental effect on the environment. nevertheless, it is important to note that the advancement of financial systems can potentially yield beneficial outcomes for environmental welfare through the reduction of ecological impact. the study's findings suggest a unidirectional causal link from military expenditure to ecological impact while demonstrating a bidirectional causal relationship between military expenditure and economic growth. however, despite the growing prominence of this topic, the use of empirical data to examine the relationship between militarization and the reduction of biodiversity has yet to be acknowledged. the existing research in this particular domain primarily focuses on carbon emissions, while relatively less emphasis has been placed on the issue of biodiversity loss. understanding the correlation between militarization and the decrease in biodiversity presents difficulties in the absence of reliable and sufficient data. hence, additional investigation is necessary in diverse contexts to examine the influence of militarization on the population of endangered species. the foremost concern linked to the decline in biodiversity pertains to its potential consequences for forthcoming generations, who could encounter difficulties concerning the depletion of natural resources and compromised wellbeing of ecosystems. the central concern of modern society revolves around the recognition that, despite our present access to economic prosperity, future generations will inevitably encounter the limitations imposed by finite natural resources and a progressively deteriorating ecosystem. the preservation of the earth's ability to sustain itself as an ecosystem that provides fair opportunities for survival to all cohabiting species is of utmost significance. agbioforum, 25(1), 2023 | 234 habibullah, abdul hamid, a jaz, saudi _ impact of military expenditure on biodiversity loss: worldwide evidence 3. data and methodology the model proposed in this study is founded upon the works of domguia and poumie (2019) as well as erdogan, gedikli, çevik, and öncü (2022). the assessment of the environmental impact of increasing militarism incorporates the count of endangered species, along with additional explanatory factors that have been incorporated to enhance the model. the model is defined in the following manner: biodiversity loss = f (military, income, population, governance) (1) all variables are converted to natural logarithms (ln). the estimated stochastic model can therefore be illustrated as follows: ln biodiversitylossit = π0 + π1 ln militaryit+ π2 ln incomeit + π3 ln populationit + π4 ln governanceit + εit (2) biodiversity loss, denoted as biodiversitylossit, refers to the quantification of species that face threats within country i during time t. this serves as a proxy for measuring the extent of biodiversity decline. military expenditure in country i during time t is represented by militaryit, indicating the financial resources allocated towards military activities. incomeit corresponds to the real gdp per capita of country i during time t, serving as a proxy for gauging economic development. populationit represents the total population of country i during time t, serving as a proxy for assessing demographic changes. lastly, governanceit denotes the quality of governance in country i during time t, serving as a proxy for evaluating institutional quality. the parameters π1 , π2 , π3 and π4 are used to denote the coefficients or elasticities associated with the independent variables, while π0 is the intercept and ε represents the error term. there are multiple methodologies that can be employed to quantify the impact on the environment. nevertheless, scholarly inquiries in this particular domain have primarily focused on assessing the environmental impact of military spending through the analysis of carbon emissions and ecological footprints. deforestation, water pollution, and air pollution are among the supplementary environmental indicators that have been extensively studied (ahmed, shahbaz, qasim, & long, 2015; arshad, robaina, shahbaz, & veloso, 2020; din, habibullah, & choo, 2014; gedik & mugan-ertugral, 2019; habibullah, din, choo, & tan, 2019; saenz-de-miera & rosselló, 2014; tan, yiew, & habibullah, 2022). the preceding study has demonstrated that employing the quantity of endangered species as a substitute for measuring the decline in biodiversity can be a substantial indicator for evaluating the ecological consequences arising from military activities, encompassing land utilisation, contamination, and forest depletion. threatened species encompass taxa that are classified as severely endangered, endangered, or vulnerable. a negative correlation can be observed between the number of endangered species and the level of species richness. therefore, it can be deduced that the expected trend of this variable will be positive. in the realm of academic research, it is customary to evaluate the level of militarization through the quantification of military expenditure as the focal variable. this refers to the comprehensive scope of current and future financial expenditures related to the military. it includes expenses associated with personnel engaged in peacekeeping activities, defence ministries, and other government entities involved in defence-related initiatives. additionally, it encompasses paramilitary forces equipped with the necessary training and resources for military operations, as well as activities pertaining to military operations in space. the expenses encompassed within this framework consist of operating and maintenance costs, procurement expenditures, investments in military research and development, and military assistance provided by the donor country in the form of its own military outlays. the variable in question encompasses a broad range of individuals, including both military and civilian personnel, along with their associated retirement benefits and social services. this can be observed by referring to the world bank indicator ms.mil.xpnd.gd.zs. in line with prior investigations conducted by zandi, haseeb, and zainal abidin (2019), gokmenoglu, taspinar, and rahman (2021), and erdogan, gedikli, çevik, and öncü (2022), the current study proposes that an escalation in military expenditure is anticipated to exert an adverse impact on environmental performance, as assessed by the quantification of endangered species. this study additionally investigates the impact of additional explanatory factors, such as wealth and population, on the estimation of environmental outcomes. previous research has underscored the potential ramifications of economic development and the expansion of the human population on the degradation and transformation of ecosystems and biodiversity, driven by the objective of generating tangible goods and services (asafu-adjaye, 2003; cafaro, hansson, & götmark, 2022). the factors mentioned above have exerted considerable pressure on the earth's carrying capacity, resulting in the depletion of finite resources, deforestation, environmental pollution, and land degradation. the global annual extraction of both renewable and non-renewable resources has surpassed 60 billion metric tonnes, demonstrating a steady growth rate of around 100% per year since 1980. as a result, there has been a rise in the extinction of various species. as a result, it is expected that these variables will exhibit a positive trend. on the other hand, there is a positive correlation between higher institutional quality or effective governance and enhanced service delivery. this association is regarded as a favourable outcome of good governance as it aids in the reduction of environmental impact. essentially, it functions as a primary driver for the conservation of the environment by addressing conflicts within and between nations regarding the exploitation of natural resources, thereby fostering the development of assurance and reliance across various spheres. the presence of strong resource management practices within an institution is commonly associated with improved institutional quality, creating a favourable environment that offers substantial agbioforum, 25(1), 2023 | 235 habibullah, abdul hamid, a jaz, saudi _ impact of military expenditure on biodiversity loss: worldwide evidence benefits for individuals (din, habibullah, & choo, 2014; habibullah, din, chong, & radam, 2016; habibullah, din, tan, & zahid, 2022). a nation's susceptibility to environmental concerns can be heightened by inadequate governance and the presence of illegitimate institutions that lack the capacity to enforce compliance with contracts and operational regulations. therefore, it is expected that the indicator for this variable would exhibit a negative sign. the dataset utilised in this study comprises longitudinal panel data encompassing the time period from 2013 to 2020. the study includes a comprehensive sample size of 112 nations, representing diverse countries. the data is collected from various sources, including the iucn red list, which is used to assess the population status of species that are vulnerable. additionally, the world bank's world development indicators (wdi) database is used to analyse military expenditure, income levels, and population figures. furthermore, the world bank's world governance indicators database is employed to evaluate the governance index. table 1 presents a succinct summary of the factors being examined, while table 2 lists the 112 countries that have been incorporated in the study. the countries included in this research were chosen based on the availability of data. table 1: summary of variables. variables measurement sources expected sign biodiversity loss number of threatened species by taxonomic groups (mammals, birds, reptiles, fishes, and plants) iucn military military expenditure (% of general government expenditure) wdi positive income real gdp per capita (constant 2015 us$) wdi positive population total population wdi positive governance governance indicators are voice and accountability, political stability and absence of violence/terrorism, government effectiveness, regulatory quality, rule of law, and control of corruption wgi negative note: iucn the international union for conservation of nature, wdi is for world development indicator, wgi – worldwide governance indicator. table 2: list of 112 countries included in this study. afghanistan colombia ireland montenegro south africa albania congo, dem. rep. israel morocco spain algeria cote d'ivoire jamaica mozambique sri lanka angola croatia japan nepal sweden argentina cyprus jordan netherlands tanzania armenia czech rep kazakhstan new zealand thailand australia denmark kenya nicaragua timor-leste austria dominican rep korea, rep. nigeria trinidad & tobago azerbaijan ecuador kuwait norway tunisia bangladesh egypt, arab rep. kyrgyz rep oman turkey belarus el salvador latvia pakistan uganda belgium eswatini lebanon papua new guinea ukraine bolivia fiji lesotho paraguay united kingdom bosnia & herzegovina finland liberia peru united states botswana georgia lithuania philippines uruguay brazil germany luxembourg poland zambia brunei darussalam ghana madagascar portugal bulgaria guatemala malaysia romania cambodia guyana mali rwanda cameroon honduras malta saudi arabia central african rep hungary mauritius senegal chad india mexico singapore chile indonesia moldova slovak republic china iraq mongolia slovenia to achieve the objective of our study, we have chosen to employ panel data analysis. the investigation commences by employing a static panel that encompasses the variables of political science (pols), renewable energy (re), and foreign exchange (fe). according to the pols estimation, it is postulated that the intercept and slope coefficients within the biodiversity loss model exhibit constancy across various countries and time periods. the assumption is made that the error term consists of a sequence of disturbances that exhibit identical and independent distributions and do not exhibit correlation with the explanatory variables. nevertheless, it is crucial to acknowledge that this assumption could potentially impose specific limitations and potentially introduce bias related to heterogeneity. in light of the diverse composition of economic data, it is imperative to incorporate distinct intercepts in the regression analysis of the biodiversity loss model. in contrast, the random effects (re) and fixed effects (fe) models propose that each nation possesses distinct intercepts while maintaining a homogeneous slope. the model of biodiversity loss can be decomposed into two distinct and independent components, namely the error term. ln biodiversitylossit = π0 + π1 ln militaryit+ π2 ln incomeit + π3 ln populationit + π4 ln governanceit + λi + μit (3) the regression model incorporates the time-invariant, individual-specific impact in order to accommodate individual-specific factors that have not been explicitly accounted for. the random effects (re) model posits that the individual-specific effect (λi) is a stochastic variable that is assumed to be independent of the explanatory variables. this agbioforum, 25(1), 2023 | 236 habibullah, abdul hamid, a jaz, saudi _ impact of military expenditure on biodiversity loss: worldwide evidence facilitates the incorporation of time-invariant variables as explanatory factors in the model. in contrast, the fixed effects model maintains a constant individual-specific effect and allows for potential correlation with the independent variables. the fixed effects (fe) model is frequently preferred in comparison to the random effects (re) model. a notable constraint of the random effects (re) model is the underlying assumption that the level-1 independent variables, which exhibit temporal variation in time-series cross-section and panel data, are not correlated with the random effects term. the plausibility of the condition may be subject to scrutiny due to the existence of unobserved heterogeneity, which is inherently correlated with the independent variables. the observed correlation can be attributed to the inherent variability of a level-1 variable, which manifests both within individual clusters and across different clusters. however, further experimentation is necessary to determine the most suitable static techniques among the options. once the estimations for the pols and re tests have been made, it becomes imperative to perform the breuch-pagan lm (bplm) test (breusch & pagan, 1980) in order to select one of the models. if the null hypothesis is rejected, the decision to choose between the random effects (re) or fixed effects (fe) model is made based on the application of the hausman (1978) test. endogeneity concerns can occasionally emerge in the context of static panel data analysis, specifically when one of the independent variables in the biodiversity model demonstrates correlation with the error term. the failure to adequately address this matter may lead to inaccurate deductions and potentially misleading outcomes. to mitigate the issue of endogeneity, the present study employs the system generalised method of moments (gmm) approach, originally introduced by arellano and bond (1991), arellano and bover (1995), and blundell and bond (1998, 2000). in contrast to a static panel, the incorporation of the lagged dependent variable as an explanatory variable function as an instrumental variable to mitigate the issue of endogeneity. the dynamic model within the biodiversity model is obtained through the utilisation of equation (3) while incorporating a onelagged period of the dependent variable. ln biodiversitylossit = π0 + π1 ln biodiversitylossit−1 + π2 ln militaryit+ π3 ln incomeit + π4 ln populationit + π5 ln governanceit + λi + μit (4) the problem of endogeneity is tackled by the gmm method through the utilisation of two distinct transformations: the first-difference transformation, commonly referred to as one-step gmm, and the secondorder transformation, known as two-step gmm. the transformation techniques mentioned above fall into two distinct categories of gmm approaches, specifically difference-gmm (d-gmm) and system-gmm (s-gmm). one of the limitations of the dynamic generalised method of moments (d-gmm) is that its estimation is dependent on moment conditions that are derived from the estimated initial difference of the error component. on the other hand, the generalised method of moments (gmm) in the system is a more complex methodology as it integrates two separate sets of moment conditions, encompassing both lagged variables in their original form as well as their differences. the utilisation of this approach holds promise for enhancing efficiency through the integration of additional tools or instruments into the model. the validity of these additional instruments can be assessed using the sargan over-identifying restriction tests (arellano & bond, 1991). furthermore, empirical evidence has demonstrated that the utilisation of twostep difference generalised method of moments (gmm) standard errors is linked to the concern of downward bias. in contrast, the gmm approach method proposed by blundell and bond (1998) and bond (2002) offers a viable solution to the problems of autocorrelation and heteroskedasticity. this approach effectively mitigates these issues, resulting in dependable coefficient estimates and enhanced accuracy in autocorrelation testing. empirical findings the principal objective of this study is to evaluate the ecological ramifications linked to military spending, with a specific emphasis on the population of endangered species. table 3 provides a comprehensive summary of the main characteristics of the variables incorporated in the study, employing descriptive statistics. the data clearly demonstrates that the variable representing biodiversity loss ranges from a minimum value of 9 to a maximum value of 3,483. the focal variable exhibits a mean of 1.875, encompassing a range that extends from a minimum value of 0.146 to a maximum value of 13.326. furthermore, it is observed that the notable values for income and population are 14,413 and 5.73e+07, respectively. the recorded minimum values for income and population are 364.084 and 404,414, respectively, whereas the maximum values are noted as 108,570 and 1.40e+09. all variables have a positive standard deviation. a greater magnitude of the standard deviation indicates that the data points demonstrate a broader dispersion across a wider range of values. on the other hand, a low standard deviation indicates that the data points exhibit a propensity to aggregate in close proximity to the mean of the dataset. the results of the correlation matrix are presented in table 4. the findings of the analysis demonstrate a significant correlation between the decrease in biodiversity and its fundamental determinants, specifically population, income, and governance. nevertheless, the correlation between the decline in biodiversity and military expenditure does not demonstrate a statistically significant association. the statistical significance of the relationship between the independent variables is moderate overall, except for the association between income and governance, which demonstrates a correlation coefficient of 0.89. hence, the matter of multicollinearity is regarded as inconsequential. however, it is important to acknowledge that the results obtained from the correlation matrix may not accurately reflect the findings of this study. this limitation arises from the use of variables presented in level data. agbioforum, 25(1), 2023 | 237 habibullah, abdul hamid, a jaz, saudi _ impact of military expenditure on biodiversity loss: worldwide evidence table 3: descriptive statistics. variables unit obs mean std. dev. min max kurtosis skewness biodiversity loss number of threatened species 888 306.812 425.088 9 3,483 12.759 2.791 military expenditure % 888 1.875 1.621 0.146 13.326 15.498 3.036 income constant us$ 888 14,413.3 19,009.57 364.084 108,570 7.995 2.122 population number of persons 888 5.73e+07 1.68e+08 404,414 1.40e+09 45.120 6.401 governance index 888 0.125 0.934 -1.887 2.325 2.245 0.331 notes: asterisks ***, **, * denote statistically significant at 1%, 5% and 10% level, respectively. governance is referred to government effectiveness. table 4: correlation matrix. variables biodiversity loss military expenditure income population governance biodiversity loss 1.0000 military expenditure -0.018 1.0000 income -0.115*** 0.051 1.0000 population 0.582*** 0.120*** -0.196*** 1.0000 governance -0.064* -0.001 0.888** -0.168*** 1.0000 notes: asterisks ***, **, * denote statistically significant at 1%, 5% and 10% level, respectively. the examination of the factors influencing the model of biodiversity loss is carried out through the utilisation of both static and dynamic panel methodologies. the coefficients, pvalue significance levels, and standard errors for all predictors in each technique are reported. the results for the fixed-effects panel are presented in table 5. in contrast to other static models, the fixed effects (fe) model exhibits greater effectiveness in elucidating the underlying factors that contribute to the decline in biodiversity. in all instances, the p-values derived from the bplm and hausman tests demonstrate a substantial degree of statistical significance, thereby satisfying the criteria for rejecting the null hypothesis. given the prevalence of crosssectional dependence (csd) and the potential issue of heteroskedasticity in the fixed effects (fe) model, this study employed the robust fe standard error model to conduct the analysis. table 5: results of military expenditure on biodiversity loss using static approaches. independent variables pols random effect fixed effect fixed effect robust standard error military expenditureit -1.135*** 0.206*** 0.236*** 0.236*** (0.045) (0.040) (0.037) (0.058) incomeit -0.102** 0.449*** 0.751*** 0.751*** (0.050) (0.061) (0.086) (0.174) populationit 0.424*** 0.730*** 2.312*** 2.314*** (0.020) (0.056) (0.136) (0.221) governanceit 0.213** -0.237*** -0.224*** -0.224*** (0.087) (0.053) (0.048) (0.084) constant -0.979* -10.912*** -39.538*** -39.587*** (0.569) (1.116) (2.238) (3.569) bplm test 0.000 hausman test 0.000 heteroscedasticity test 0.000 csd test 0.000 number of groups 112 112 112 112 number of observations 890 890 890 890 notes: figures in the parentheses are standard errors. bplm denotes as breusch–pagan lm test, and csd denotes as crosssectional dependence. all the bplm test, hausman test, heteroscedasticity test, and csd test are reported in p-values. asterisks ***, **,* denote statistically significant at 1%, 5% and 10% level, respectively. the hypothesis suggests that there is a substantial impact of militaristic pressure on the environment, as indicated by the robust standard error discovery. research has demonstrated that a marginal increase of 1% in military spending is associated with a proportional escalation of 0.24% in the depletion of biodiversity. despite utilising distinct environmental metrics, the current study's results are consistent with previous scholarly investigations that have explored the impact of militarism on carbon emissions and ecological footprint. this alignment is exemplified by the works of jorgenson and clark (2016), bradford and stoner (2017), afia and harbi (2018); bildirici (2017a), bildirici (2017b, 2017c), domguia and poumie (2019), zandi, haseeb, and zainal abidin (2019), and erdogan, gedikli, çevik, and öncü (2022). furthermore, the remaining explanatory variables demonstrate statistical significance at a significance level of 1%. moreover, it is important to acknowledge that the environment is impacted not solely by military operations, but also by economic progress and population growth, as highlighted by din, habibullah, and choo (2014) and habibullah, din, chong, and radam (2016). a slight augmentation of 1% in wealth or population is associated with a corresponding rise of 0.75% and 2.31% in the depletion of biodiversity. on the other hand, there is a negative correlation between an enhancement in institutional quality, as evaluated by the governance indicator, and a reduction in the environmental impact by 0.22%. the negative coefficients observed in relation to the governance indicator indicate that effective governance is associated with the implementation and enforcement of appropriate rules and regulations that promote environmental preservation. the robustness test is performed by incorporating multiple governance measures. as initially suggested by kaufmann, kraay, and mastruzzi (2008), the current study used six governance measures. the indicators encompassed in this framework consist of voice and accountability, political stability and absence of violence, governance effectiveness, regulatory quality, rule of law, and corruption control. the results displayed in table 6 agbioforum, 25(1), 2023 | 238 habibullah, abdul hamid, a jaz, saudi _ impact of military expenditure on biodiversity loss: worldwide evidence demonstrate that the biodiversity loss model demonstrates resilience, indicating its stability and reliability. at a significance level of 1%, the variable being examined demonstrates a substantial level of significance across all governance measures. table 6: results of military expenditure on biodiversity loss using static approaches with robust standard error. independent variables voice and accountability political stability and absence of violence regulatory quality governance effectiveness rule of law control of corruption military expenditureit 0.231*** 0.231*** 0.229*** 0.236*** 0.230*** 0.230*** (0.059) (0.059) (0.060) (0.058) (0.060) (0.059) incomeit 0.696*** 0.718*** 0.721*** 0.751*** 0.708*** 0.695*** (0.193) (0.195) (0.182) (0.174) (0.192) (0.193) populationit 2.305*** 2.300*** 2.262*** 2.314*** 2.295*** 2.306*** (0.221) (0.222) (0.215) (0.221) (0.219) (0.220) governanceit -0.006 -0.105** -0.144 -0.224*** -0.083 0.016 (0.073) (0.052) (0.105) (0.084) (0.068) (0.082) constant -38.969*** -39.068*** -38.452*** -39.587*** -38.910*** -38.976*** (3.541) (3.544) (3.508) (3.569) (3.506) (3.514) number of groups 112 112 112 112 112 112 number of observations 890 890 890 890 890 890 notes: asterisks ***, **,* denote statistically significant at 1%, 5% and 10% level, respectively. the empirical results regarding the correlation between military spending and the decline of biodiversity are displayed in table 7. these findings were obtained through the application of the generalised method of moments (gmm) estimation technique. several experiments have been conducted that have demonstrated that the lag-dependent variable demonstrates statistical significance independently in both the one-step and two-step system-gmm (s-gmm) methodologies. the results suggest that the ongoing decrease in biodiversity is substantially influenced by the preceding year's biodiversity loss. the estimated coefficients obtained through the one-step s-gmm approach exhibit a slight increase in comparison to the estimated coefficients derived from the two-step s-gmm approach. the analysis demonstrates that there exists a positive correlation between a 1% increase in biodiversity loss in the preceding year and a 1.02% increase in the current level of biodiversity loss. table 7: results of military expenditure on biodiversity loss using dynamic approaches. independent variables one-step difference gmm two-step difference gmm one-step system gmm two-step system gmm biodiversity lossit-1 0.227 -0.015 1.021*** 0.930*** (0.458) (0.418) (0.111) (0.292) military expenditureit 0.758* 0.945** 0.130 0.366 (0.442) (0.419) (0.187) (0.540) incomeit 0.552 0.766 0.063 0.095 (0.656) (0.617) (0.134) (0.243) populationit 3.122** 3.753*** 0.154 0.370 (1.447) (1.341) (0.220) (0.608) governanceit -2.008 -2.823 0.053 0.229 (1.996) (2.000) (0.257) (0.357) constant -3.170 -6.661 (3.732) (10.453) number of instruments 11 11 17 17 number of groups 111 111 112 112 number of observations 666 666 778 778 ar (1) 0.009 0.057 0.001 0.002 ar (2) 0.526 0.726 0.037 0.028 sargan test 0.102 0.000 hansen test 0.105 0.000 notes: figures in the parentheses are standard errors. all the ar(1), ar(2), sargan test, and hansen test are reported in pvalues. asterisks ***,**,* denote statistically significant at 1%, 5% and 10% level, respectively. however, the two-step system generalised method of moments (gmm) is widely regarded as a more advantageous approach owing to its capacity to effectively identify and address issues related to autocorrelation and heteroskedasticity. consequently, this methodology produces coefficient estimates that exhibit consistency and autocorrelation tests that demonstrate enhanced accuracy. nevertheless, the examination presented in table 7 demonstrates that military expenditure holds little statistical significance, implying that it does not exert a substantial impact on the decline of biodiversity. in the context of the twostep s-gmm model, it is evident that none of the remaining explanatory variables demonstrate statistical significance. furthermore, it is worth noting that the two-step s-gmm fails to satisfy the consistency test, which encompasses the hansen test and the ar (2) test. conclusion and policy implications this study aims to deepen our understanding of the anthropogenic factors that contribute to environmental degradation by investigating the impact of military expenditure on the decline of biodiversity. prior studies have faced challenges in effectively evaluating the ecological impacts of escalating military activities, specifically in terms of accurately measuring the magnitude of biodiversity decline. to achieve the intended result, a comprehensive analysis is performed on a panel study encompassing 112 countries over the period from 2013 to 2020. this analysis utilises both static panel and dynamic panel methodologies. based on the available empirical evidence, it can be inferred that the static model exhibits greater favorability in comparison to the dynamic model. however, the application of the fixed effects (fe) model with robust standard errors has agbioforum, 25(1), 2023 | 239 habibullah, abdul hamid, a jaz, saudi _ impact of military expenditure on biodiversity loss: worldwide evidence demonstrated its effectiveness in static methodologies for accurately describing the biodiversity loss model. this is mainly due to the presence of common sources of disturbance (csd) and concerns regarding heteroskedasticity. the increase in financial resources allocated to military expenditures has been demonstrated to have negative impacts on the natural environment. the increase in endangered species populations can be attributed to the impact of military operations, which has resulted in the degradation of their natural habitats and a subsequent reduction in genetic diversity. the aforementioned conclusion is substantiated by the presence of a positive and statistically significant coefficient that has been computed. furthermore, the findings of this study suggest that the rapid rate of economic growth and population growth are additional factors that contribute to the impending risk of extinction experienced by numerous animal and plant species. this discovery offers further substantiation for the tendency of these countries to prioritise economic advancement and societal welfare over environmental conservation. it is crucial to recognise that the concept of human security transcends the limitations imposed by a prevailing military power. the incorporation of environmental security into the context of human security necessitates careful examination. the current condition of environmental degradation possesses the capacity to yield disastrous consequences for future generations. the escalating phenomenon of species extinction will exert a substantial influence not only on the existing species' ecological food web but also on the subsequent diminishment of plant and animal populations. the significance of reducing the population of susceptible species is a crucial element in the preservation of an ecologically sustainable ecosystem. the findings of this study offer additional support for the importance of governance within the specific context under investigation. the inclusion of a negative sign in the estimated coefficient pertaining to the governance indicator signifies a clear association between elevated institutional excellence and enhanced environmental quality. therefore, it is imperative for governments to take into account the concept of militarism when formulating strategies aimed at safeguarding the environment. the narrative holds considerable importance due to the potential peril that arises from advancements in military operations, infrastructure, and weaponry, which jeopardise the existence of various life forms. the integration of environmental factors into military policies and overarching frameworks necessitates cooperative endeavours between local governments and international organisations. to address the issue of reliance on limited resources, it is crucial to embrace an environmentally conscious approach when designing and manufacturing defensive equipment. furthermore, the adoption of 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https://dl1.cuni.cz/mod/resource/view.php?id=280680 https://dl1.cuni.cz/mod/resource/view.php?id=280680 https://www.worldcat.org/title/370692 https://doi.org/10.1525/sp.2008.55.3.370 https://doi.org/10.18510/hssr.2019.7443 agbioforum, 27(1): 20-28. ©2025 agbioforum madhyamapurush — gastronomy tourism and sustainable domestic travel: the role of environment, affordability, and experience... gastronomy tourism and sustainable domestic travel: the role of environment, affordability, and experience in thai travellers’ preferences warach madhyamapurush school of business and communication arts, university of phayao, thailand orcid id: https://orcid.org/0000-0003-4110-0780 email: warachm@gmail.com gastronomy tourism, also referred to as food tourism, has become an increasingly popular trend wherein travellers explore new cultures, traditions, and unique experiences. among various tourist demographics worldwide, thai travellers are particularly noted for their enthusiasm in exploring diverse culinary options. due to thailand’s rich culinary heritage and varied food culture, thai tourists tend to seek authentic regional dishes and flavours beyond conventional cuisine. this study examines the factors influencing domestic tourism by focusing on thai travel preferences in gastronomy tourism within phayao, a province in northern thailand. an online survey was administered to 432 thai travellers who have experienced phayao’s local gastronomy. the research specifically explores the relationships among cognitive experience (ce), emotional experience (ee), cultural engagement (ceg), cultural appreciation (ca), gastronomic affordability (ga), tourist intention (ti), and tourist experience (te), and their effects on the intention to revisit phayao for culinary purposes. data analysis was conducted using structural equation modelling (sem). findings indicate that cognitive, emotional, and cultural perceptions significantly affect emotional and environmental factors, which subsequently have a positive impact on tourists’ motivations to visit phayao for its foodrelated attractions. this study advances the understanding of the factors shaping thai travellers’ preferences in gastronomy tourism and provides practical recommendations for destination marketing strategies aimed at promoting travel to phayao. keywords: domestic tourism, thai travelers, gastronomy tourism, phayao, cultural factors, economic factors, structural equation modelling (sem). introduction gastronomy tourism (gt), frequently termed food travel, has emerged as a significant global phenomenon, enticing travellers to engage with cultures primarily through their culinary traditions. this tourism niche encompasses an interest in cooking methods, ingredients, regional dishes, and interactive experiences such as cooking workshops and visits to local markets. it transcends the simple act of eating, encompassing the transmission of traditional knowledge, as cuisine often embodies the geographical characteristics, historical context, and social narratives of a region (vukolic, gajić, & penic, 2025). for thai tourists, gt possesses a distinctive appeal, rooted in the country’s extensive culinary heritage and a profound cultural reverence for food. thailand’s cuisine is internationally recognised for its vibrant flavours, intricate combinations of spices and herbs, and diverse regional cooking techniques. such a longstanding culinary tradition fosters an intrinsic motivation among thai travellers to explore and appreciate gastronomic landscapes both domestically and abroad. their pursuit centres on authentic tastes, unique regional specialties, and immersive food-related activities that provide culturally significant experiences. within thai society, food is not merely nourishment but a communal celebration, rendering gt an essential facet of travel preferences. this strong culinary affinity underscores the prominence of thai travellers within the global food tourism market and highlights the importance of comprehending their preferences, particularly in domestic tourism contexts such as phayao, a region noted for its distinctive gastronomic offerings (kalpidis, bersimis, & tsartas, 2024). the importance of gt is further amplified by thailand’s profound historical ties to its cuisine. known globally for its colourful presentation, bold taste profiles, and sophisticated use of spices and herbs, thai cuisine reflects regional diversity through varied ingredients and culinary practices. from the spicy curries of the central plains to the richly flavoured dishes of the south, the nation’s culinary landscape is remarkably diverse. food is deeply embedded within social customs, serving as a shared experience among friends and family and symbolising hospitality and warmth intrinsic to thai culture. in the context of travel, cuisine assumes a unique role for thai tourists. given its centrality in daily life, discovering new culinary environments is perceived as an opportunity to extend gastronomic knowledge while honouring traditional roots. this intimate relationship between food and culture inspires a natural enthusiasm among thai travellers to explore culinary heritage both within the country and internationally. in light of the growth in domestic tourism, especially following disruptions to international travel, thai tourists are increasingly drawn to regional culinary offerings. consequently, destinations such as phayao in northern thailand have gained recognition as compelling food tourism sites. phayao province, situated in northern thailand, is distinguished by a rich array of culinary delights shaped by its unique historical and cultural influences (galarraga & martinez de albeniz, 2025). the local gastronomy draws on the broader traditions of northern thai cuisine while incorporating region-specific practices that have evolved https://orcid.org/0000-0003-4110-0780 mailto:warachm@gmail.com agbioforum, 27(1), 2025 | 21 madhyamapurush — gastronomy tourism and sustainable domestic travel: the role of environment, affordability, and experience... over time. the area’s fertile landscape and natural resources significantly contribute to defining the distinctive flavours of phayao’s food. for domestic travellers, phayao represents an opportunity to experience lesser-known but vibrant elements of thailand’s culinary culture. as gt’s popularity grows, the province’s traditional dishes, including specialties like khao soi—a curry noodle soup—as well as various grilled meats and fresh vegetables, attract visitors interested in both the cuisine and its wider cultural context (hsu, liu, & lin, 2022). phayao offers more than mere dining experiences; its markets, cooking schools, and food festivals provide interactive opportunities that deepen tourists’ understanding and appreciation of local culinary customs. with the ongoing expansion of thailand’s tourism industry, gt is assuming an increasingly prominent role. the nation’s extensive and varied culinary heritage positions it as a potential leader in the international food tourism market (madhyamapurush et al., 2024). thai tourists, in particular, stand to gain from this development as they seek novel flavours and deeper engagement with local food cultures. food tourism offers many the chance to reconnect with traditional culinary roots while simultaneously exploring innovative gastronomic experiences. phayao, with its rich culinary traditions and heritage, is well placed to capitalise on the rising interest in authentic, locally rooted food experiences. the province’s emphasis on genuine culinary participation resonates with global tourism trends that prioritise immersive and culturally enriching travel. as domestic tourists increasingly seek to explore less frequented destinations within thailand, phayao is well positioned to benefit from the growing appeal of gt. its unique local cuisine and opportunities for hands-on culinary involvement render it an attractive destination for food enthusiasts. furthermore, phayao’s potential in gt is bolstered by the commitment of local producers, farmers, and chefs who preserve and promote culinary traditions. collaborations with community members and stakeholders enable the province to present its food culture authentically and sustainably (praesri et al., 2022). these local actors are instrumental in cultivating an environment that encourages repeat visitation, fostering greater appreciation for the province’s culinary heritage while supporting sustainable development within the gt sector. through gt, travellers engage with a destination’s culture, history, and identity in a distinctive manner. for thai tourists, food is a fundamental element shaping their tourism choices and preferences. phayao, with its abundant culinary resources and dynamic food culture, offers an ideal environment to explore the complexities of gt (rakpa et al., 2023). by actively embracing food tourism, the province can continue to strengthen its competitive advantages and attract an expanding market of culinary travellers, ensuring a sustainable and culturally enriching future for the region’s tourism industry. research objective this study seeks to identify the determinants influencing thai tourists’ preferences for gastronomy tourism in phayao, with a particular focus on economic, cognitive, cultural, emotional, and environmental factors that shape their intention to visit the region. data were collected via an online survey involving 432 thai travellers who have previously experienced the local gastronomic offerings of phayao. research organization the structure of the research is as follows: section 2 reviews the existing literature focusing on gastronomy tourism and the factors influencing domestic travel in phayao. section 3 outlines the research methodology, detailing the data collection process, key variables, and analytical techniques employed. section 4 presents the research findings alongside a discussion of their implications. finally, section 5 offers the concluding remarks. related works wondirad, kebete, & li (2021) investigated the impact of food tourism on regional development in the basque country. by employing qualitative interviews alongside quantitative tourism data, they found that food tourism substantially contributed to both economic growth and the preservation of cultural heritage. however, their focus was limited to economic and cultural effects, lacking consideration of wider contextual factors. similarly, prayag et al. (2020) studied culinary tourism in spain and italy to assess its precise effects on regional communities. their analysis, which incorporated interviews with both residents and tourists, revealed that while food tourism enhanced regional economies, it also led to challenges such as the commercialisation of ethnic traditions. this study did not, however, identify long-term impacts on traditional authenticity and sustainability. richardson (2021) examined the role of gastronomy within sustainable tourism development in thailand. using a mixed-method approach combining fieldwork and expert interviews, the research concluded that authentic culinary experiences increased tourist satisfaction and supported environmental sustainability, underscoring food tourism’s dynamic role in sustainable development. this study was confined to specific regions and did not encompass a national perspective. the characteristics of street food and their influence on tourist behaviour were explored by jeaheng & han (2020). through both qualitative and quantitative methods, they identified 45 attributes grouped into nine dimensions, finding that these significantly shaped traveller behaviour, with perceived difficulties weakening this relationship. the small sample size, however, limits generalisability. nugroho (2022) investigated the effect of gastronomy tourism on the destination image of lombok island, indonesia, by analysing travel blogs and social media content. the findings indicated that positive culinary engagement enhanced lombok’s image, attracting more international tourists. the study’s reliance on online data restricted insights into on-site experiences. research into the influence of gastronomy festivals on tourist behaviour showed that such events increased visitor numbers, expenditure, and loyalty, particularly through interactive food-related activities. however, this was limited to a single festival, restricting broader applicability. polat & aktaş-polat (2020) analysed the contribution of food tourism to rural development in the loire valley through agbioforum, 27(1), 2025 | 22 madhyamapurush — gastronomy tourism and sustainable domestic travel: the role of environment, affordability, and experience... interviews with regional producers and tourism operators. they found that gastronomy tourism supported regional agriculture and preserved traditional heritage, thereby fostering economic growth. the study’s focus on local producers excluded other stakeholders. hall (2020) examined the impact of culinary tourism on regional food systems in napa valley by surveying farmers and restaurateurs. results suggested that while food tourism brought economic benefits, it also exerted pressure on local food practices, highlighting the necessity for sustainable approaches to balance development and conservation. this study was limited by its exclusion of tourist perspectives and concentration on specific culinary aspects. maraña et al. (2024) studied the effects of gastronomy tourism on tourist satisfaction and revisit intention in laguna through an online survey of 250 participants, analysed using spss. they found that factors such as culinary affordability, hygiene, customised menus, and consistent quality significantly influenced satisfaction, which in turn correlated with increased revisit intention and positive word-of-mouth. kalenjuk pivarski et al. (2023) focused on the role of cultural gastronomy in tourism development in vojvodina, examining hospitality workers’ views on heritage preservation and environmental responsibility through a survey of 508 industry professionals. the findings emphasised the importance of the vojvodina hungarian community in maintaining and promoting local cuisine, with recommendations for tourism marketing and reliable food offerings. the study’s limitation was its focus on industry workers, neglecting tourist opinions. boonlae & wongmonta (2020) explored thai travellers’ perceptions of integrated marketing communication tools, satisfaction with promotional mixes, and the effectiveness of cultural tourism assets in chanthaburi province. employing quantitative analysis of data from 400 tourists through t-tests and anova, complemented by in-depth interviews with 20 officials, the study highlighted the need to improve accessibility, platform usability, and promotional strategies, proposing an integrated communication approach to enhance tourism. its focus on a single province limits broader applicability. yodsurang et al. (2022) examined challenges faced by community-based tourism (cbt) regarding heritage resource management amid tourism growth. using a layered clustering database of 549 groups from public and private sector organisations, they identified three main clusters: historical district-shopping tourism, natureecotourism, and cultural landscape-agricultural tourism. these groups shared resource-based interests and approaches to tourism organisation, linked with regional authorities, highlighting how heritage is interpreted differently across clusters. the data’s regional specificity limits generalisability, though the findings supported policy reforms at local and national levels. sokolova et al. (2021) assessed the prospects for expanding domestic gastronomy tourism in russia under covid-19 restrictions, employing a swot analysis. their results revealed that gastronomy tourism positively impacted local economies during travel limitations and is a key factor in enhancing territorial tourist appeal and promoting ecotourism. they noted the importance of local support and favourable investment climates for successful development. the analysis was limited by its regional focus, restricting application to other countries. christou & pericleous (2023) explored factors shaping tourist perceptions within domestic tourism through a fuzzy-set qualitative comparative analysis of 394 respondents, supplemented by qualitative data from 40 informants. they found that social interactions and quality time with companions significantly influenced positive domestic tourism perceptions. additional critical factors included culture, cleanliness, price, and uniqueness. the research offered valuable management insights but was limited to a specific demographic, restricting the breadth of perspectives. pamukçu et al. (2021) investigated the influence of regional cuisine and geographically indicated products on gastronomy tourism development by surveying 391 visitors and potential visitors to bolu. their analysis demonstrated that geographically indicated products had the greatest impact on gastronomy tourism growth, accounting for 60%, followed by regional cuisine at 37.7%. the study’s regional limitation reduces its applicability elsewhere. methodology the study investigates the factors influencing thai travellers’ preferences for gt in phayao. the development of hypotheses centres on analysing the roles of emotional, cognitive, and cultural experiences in determining intentions to revisit. data were collected via surveys, and statistical methods, including sem, were utilised to assess the effects of these factors on travellers’ intentions to return. hypothesis development a hypothesis is a proposed explanation or prediction regarding the relationship between two or more variables, which can be examined through data analysis and research. within analysis, hypotheses serve to verify whether specific expectations or predictions are supported by empirical evidence. in this study, hypotheses form the foundation of the research by modelling potential relationships among various factors—such as emotional, cognitive, and cultural involvement, as well as environmental perceptions—with ti and te to revisit phayao for gastronomy tourism. each hypothesis suggests a precise cause-and-effect relationship between the identified variables. the conceptual framework illustrating these hypotheses is presented in figure 1. hypothesis 1 (h1): ce directly increases ti by encouraging awareness and understanding of phayao’s cooking offerings, leading to interest and plans for a revisit. hypothesis 2 (h2): ee positively impacts ti by creating a lasting connection with phayao’s cuisine. ceg moderates this effect, improving emotional relationships and inspiring tourists to revisit. hypothesis 3 (h3): ca indirectly affects ti by improving gt, which bridges the relationship between traditional engagement and travellers’ revisit plans. hypothesis 4 (h4): ga influences the relationship between te and ti, ensuring cognitive stimulation is accessible and motivating tourists to revisit. hypothesis 5 (h5): environmental perception (ep) positively impacts te. favourable perceptions of phayao's agbioforum, 27(1), 2025 | 23 madhyamapurush — gastronomy tourism and sustainable domestic travel: the role of environment, affordability, and experience... emotional relationship and food-related environment encourage return visits. figure 1: conceptual framework for hypothesis. evaluation variables • emotional experience (ee) these characteristics focus on the emotional bond tourists establish with the culinary heritage of the destination. the satisfaction and excitement derived from discovering new flavours, sampling local dishes, and engaging with the food heritage generate a memorable ee that influences tourists' decision-making. • cognitive experience (ce) cognitive dynamics refer to the intellectual engagement of tourists as they explore regional food cultures. this encompasses the knowledge acquired regarding preparation methods, ingredients, and the historical context of the dishes. tourists who actively engage cognitively and assimilate information about the culinary culture of a destination are more likely to perceive the experience as enriching. • cultural appreciation (ca) ca involves the recognition, respect, and comprehension of a destination’s distinctive traditions, cultures, and values, especially in relation to its cuisine. this appreciation cultivates a profound connection between tourists and the location. • environmental perception (ep) ep refers to how travellers perceive the surroundings and ambiance of a destination, including its physical features, atmosphere, cleanliness, and local food settings. these perceptions influence their overall satisfaction and decisions regarding whether to revisit. • tourist intention (ti) ti refers to a traveller’s likelihood or willingness to return to a particular destination, shaped by factors such as satisfaction, previous experiences, and the perceived value of the visit. • gastronomic affordability (ga) ga refers to the perceived value for money of local culinary options, which influences tourists’ motivation to explore regional cuisine. when cuisine is considered reasonably priced, it encourages repeat visits and enhances overall tourist satisfaction. • cultural engagement (ceg) ceg refers to the active involvement of travellers in experiencing and appreciating the local culture, traditions, and customs. this participation strengthens their emotional connection, enriches their visit, and cultivates a strong intention to revisit destinations such as phayao. • tourist experience (te) te denotes the overall satisfaction and emotional connection that travellers develop during their visit. it encompasses sensory, cognitive, and emotional interactions with the destination, which collectively influence their memories and future intentions. data collection data were gathered through a public survey involving 432 thai tourists who had visited phayao and engaged with its regional cuisine. the analysis examined the influence of various factors including economic considerations, emotional experiences, cognitive understanding, cultural impacts, and environmental attributes—on their intention to revisit phayao for gastronomy tourism. demographic information such as gender, age, income, education, lifestyle travel preferences, and food-related travel motivations was analysed to identify behavioural patterns among travellers. the official currency of thailand, thai baht (thb), was used in economic-related questions. table 1 presents the participants’ demographic details. table 1: demographic details of the participants. demographic characteristics frequency (n=432) gender male 180 female 252 age 18-30 years 150 30-45 years 160 45+ years 122 income level 10,000-25,000 thb 150 25,000-50,000 thb 180 above 50,000 thb 102 lifestyle travel preferences preference for culinary tourism 304 preference for nature and adventure tourism 128 food-related travel motivation desire to explore new cuisines 280 seeking authentic regional flavours 152 lifestyle travel preferences preference for culinary tourism 250 preference for cultural heritage tourism 100 preference for nature and adventure tourism 82 food-related travel motivation desire to explore new cuisines 230 seeking authentic regional flavours 202 agbioforum, 27(1), 2025 | 24 madhyamapurush — gastronomy tourism and sustainable domestic travel: the role of environment, affordability, and experience... questionnaire the questionnaire assessed the variables influencing thai tourists’ preferences in gt. table 2 presents the evaluation of the effects of ee, ce, ca, ep, ti, and ga. each variable was measured using two questions. the study utilised a likert scale ranging from strongly agree (1) to strongly disagree (5) to determine the presence and intensity of these factors, providing valuable insights into how these elements impact tourists’ gt choices in phayao. table 2: questionnaires for the participants. variable question 1 question 2 ee how would you describe your emotional response to the flavours of phayao's cuisine? how excited were you to experience the local flavours of phayao? ce how much did you learn about phayao’s food culture and cooking techniques? how engaging was exploring the history behind phayao’s regional food practices? ca how much did you appreciate phayao’s culinary heritage and its cultural uniqueness? how well does phayao’s food reflect its traditions and values? ep how would you rate the cleanliness and atmosphere of phayao’s food markets and restaurants? how favourable was phayao’s environment for enjoying food experiences? ti how likely are you to revisit phayao for its food in the future? how strong is your intention to recommend phayao for food tourism? ga how affordable were the food options in phayao? how would you rate the value for money of phayao’s food offerings? ceg how engaged were you in learning about phayao’s cultural food practices during your visit? how much did engaging with phayao's local cuisine shape your experience in the area? te how satisfied were you with your overall food experience in phayao? how would you rate the impact of phayao’s food experiences on your overall visit satisfaction? statistical methods statistical methods are mathematical procedures employed to analyse, interpret, and present data, enabling the identification of patterns and relationships. such analyses offer a structured approach to understanding variables and their interactions, ensuring conclusions are supported by empirical evidence. sem is a key statistical technique utilised in this study. by integrating factor analysis and regression, sem assesses the direct, indirect, and total effects among variables. this method is crucial for understanding how emotional, cognitive, and cultural engagements influence travellers’ preferences and intentions, thereby offering valuable insights into the dynamics of gt in phayao. structural equation modelling (sem) sem is a versatile technique employed to uncover complex relationships among variables. in this study, sem assesses the links between emotional, cognitive, and cultural perceptions and their impact on emotional and environmental factors. its strength lies in its capacity to analyse both direct and indirect effects, thereby exposing the underlying mechanisms influencing thai travellers’ preferences. sem provides a comprehensive insight into how these factors affect tourists’ intentions to revisit phayao for gt. its use guarantees precision in evaluating intricate relationships, establishing sem as an essential instrument for fulfilling the research objectives. result and analysis this section discusses the data collection procedure and presents the findings derived from structural and quantitative analyses. table 3 outlines the distribution, response, and participation rates of the questionnaires. it also provides the proportion of positive responses relative to negative ones. these results offer a comprehensive overview of participant engagement and data reliability, thereby reinforcing the effectiveness of the research methodology in assessing the gt preferences of thai travellers. table 3: gt response rate regarding questions. response category frequency percentage distributed questionnaire 520 98% returned questionnaire 490 94.23% not returned 30 5.77% questionnaire in usual condition 465 89.42% unacceptable quality 25 4.81% total response rate 490 94.23% appropriate response rate 465 89.42% measurement model table 4 presents the estimation framework alongside the reliability, internal consistency, and convergent validity of the variables and indicators. key measures, including indicator loadings, cronbach’s alpha (α), composite reliability (cr), and average variance extracted (ave), demonstrate that the constructs within the measurement model are both reliable and valid. these metrics are essential for ensuring the accuracy of the research findings and confirming that the constructs under investigation are consistently measured across the dataset. high values of cronbach’s alpha and cr indicate strong internal consistency, while ave reflects the extent to which a construct explains the variance in its indicators. figure 2 provides a visual depiction of the measurement model’s structure and performance in assessing the influences on thai travellers’ gt preferences. this illustration facilitates a clearer understanding of the interrelationships among factors, reinforcing the model’s robustness. the integration of these reliability and validity assessments enhances the credibility of the analysis and substantiates the conclusions derived from the data. agbioforum, 27(1), 2025 | 25 madhyamapurush — gastronomy tourism and sustainable domestic travel: the role of environment, affordability, and experience... table 4: measurement model evaluation results. variable indicator loading cr ave alpha (α) ce ce1 0.86 0.91 0.75 0.88 ce2 0.84 ee ee1 0.87 0.92 0.78 0.89 ee2 0.85 ca ca1 0.83 0.90 0.74 0.87 ca2 0.81 ep ep1 0.85 0.91 0.77 0.89 ep2 0.84 ga ga1 0.80 0.88 0.71 0.86 ga2 0.81 ti ti1 0.89 0.93 0.80 0.91 ti2 0.88 ceg ceg1 0.85 0.90 0.73 0.88 te ceg2 0.83 te1 0.88 0.92 0.76 0.90 te2 0.86 figure: architecture for measurement model that combines loading and alpha (α) values. table 5 presents the discriminant validity analysis. the diagonal values represent the square roots of the ave for each variable, confirming the internal consistency of the hypotheses. the off-diagonal values indicate the correlations between variables, which are lower than the corresponding diagonal values. this confirms strong discriminant validity, demonstrating that the variables are distinct and effectively capture unique aspects of thai travellers’ gt preferences. table 5: measurement model discriminant validity. variables ce ee ca ep ga ti te ceg ce 0.85 0.62 0.65 0.60 0.58 0.56 0.61 0.59 ee 0.62 0.87 0.68 0.65 0.63 0.60 0.62 0.66 ca 0.65 0.68 0.88 0.70 0.65 0.62 0.67 0.83 ep 0.60 0.65 0.70 0.84 0.72 0.69 0.63 0.71 ga 0.58 0.63 0.65 0.72 0.86 0.74 0.60 0.67 ti 0.56 0.60 0.62 0.69 0.74 0.89 0.61 0.65 ceg 0.59 0.66 0.83 0.71 0.67 0.65 0.62 0.88 te 0.61 0.62 0.67 0.63 0.60 0.61 0.87 0.62 structural model using linear regression analysis, the structural model identifies the relationships between latent variables (lvs). table 6 and figure 3 illustrate that hypotheses h1, h2, h3, and h5 receive strong support, indicating significant effects of ce, ee, and cultural appreciation on ti and environmental perception. hypothesis h4 shows moderate significance, indicating a weaker association between food affordability and ti. overall, ce and ee exert the most substantial influence on ti. table 6: result values for structural model. hypothesis path coefficient (β) t-value p-value r² standard error (se) result h1: ce → ti 0.42 6.05 0.000 0.55 0.06 well-supported h2: ee → ti→ ceg 0.40 5.80 0.000 0.53 0.07 well-supported h3: ca → ti → 0.38 5.30 0.000 0.51 0.08 well-supported h4: ga → te→ti 0.35 4.90 0.000 0.47 0.09 moderately-supported h5: ep → te 0.44 6.45 0.000 0.56 0.07 well-supported figure 3: framework for structural model using path coefficient (β) values. discussion the principal determinants influencing thai tourists’ preferences in gastronomy tourism within phayao are analysed, focusing specifically on the region’s culinary offerings. the sem analysis confirms strong support for hypotheses h1, h2, and h3, indicating that tourists’ emotional, cognitive, and cultural experiences substantially influence their intention to revisit the area. cognitive engagement enhances travellers’ comprehension and appreciation of local cuisine, thereby generating interest and motivating return visits. emotional experience fosters an affective bond with the food, strengthening the desire for continued culinary exploration. cultural appreciation further reinforces these relationships by deepening respect for the agbioforum, 27(1), 2025 | 26 madhyamapurush — gastronomy tourism and sustainable domestic travel: the role of environment, affordability, and experience... traditional heritage embodied in phayao’s gastronomy, which in turn shapes revisit intentions. hypotheses h4 and h5, concerning gastronomy affordability and environmental perception, respectively, reveal how economic and environmental considerations impact tourists’ choices. together, these hypotheses provide a comprehensive framework for interpreting tourist behaviour in this context. in the aftermath of the pandemic, tourists who have experienced travel fatigue increasingly prioritise gastronomy tourism, placing greater value on local discovery and cultural interaction. within thailand, consuming authentic thai cuisine aligns with national goals emphasizing environmental sustainability, cost-effectiveness, and rich cultural engagement. a significant number of thai travellers incorporate environmental concerns when selecting destinations to explore regional food. according to baloch et al. (2023), developing sustainable tourism frameworks necessitates enhanced focus on environmental preservation. eco-conscious food experiences, such as farm visits and organic food trail explorations, not only support environmental protection but also heighten tourist interest. khatib (2023) highlights the importance of integrating tourism practices with environmental stewardship to prevent further ecological degradation. economic factors remain influential, especially as the country recovers economically post-covid-19. seyfi, hall, & saarinen (2024) observe that substituting international travel with domestic tourism reduces expenses while promoting sustainability, thus benefiting local communities without the complexities often associated with international tourism. correspondingly, farstad et al. (2024) note that since the pandemic, many populations have developed a greater appreciation for local attractions, reflected in thai tourists’ preference for affordable and satisfying dining experiences within their own country. the presence of cultural food enhances the appeal of gastronomy tourism (palacios-florencio et al., 2021). jasrotia, kamila, & patel (2023) argue that sustainable gastronomy is inherently connected to place and culture, offering tourists meaningful opportunities to engage with local traditions. in thailand, the availability of authentic regional dishes, cooking classes, and night markets contributes to visitor satisfaction and encourages repeat visits. stalmirska & ali (2025) suggest that urban food tourism plays a role in sustainable development by fostering cultural connections between diverse communities and their environments. global models serve as useful references for thailand’s efforts to develop its gastronomy tourism. alonso et al. (2025) explain how vietnam utilises collaborative capabilities, such as partnerships between local actors and the adoption of innovative approaches, to strengthen its culinary tourism sector. applying a similar strategy could enable thai stakeholders to capitalise on the country’s culinary diversity and communal bonds. the authors further note that sustainable tourism supports recovery after the pandemic and underscores the importance of embedding food tourism within broader sustainability initiatives. the integration of digital technologies is increasingly acknowledged as vital for enhancing tourism experiences and promoting sustainability. authorities can employ digital platforms to improve visitor management and service delivery. dang & nguyen (2023) demonstrate that digital tools facilitate richer thai cooking experiences for tourists, while rodrigues, eusébio, & breda (2023) argue that tourism digitalisation enhances sustainable development by improving access, reducing errors, and enabling datainformed decision-making. overall, thailand’s gastronomy tourism sector is well positioned to promote sustainable domestic travel by emphasising natural environments, affordability, and cultural heritage. by embracing international best practices, advancing technological integration, and highlighting local cuisine, thailand can continue to attract and satisfy domestic tourists. conclusion culinary tourism in phayao has emerged as a significant influence on thai travellers’ preferences and their intentions to revisit. the findings highlight the essential roles of emotional and cultural experiences in shaping tourists’ motivations to return for further culinary exploration. stronger emotional connections with local cuisine and a profound appreciation of traditional food culture notably increase the likelihood of repeat visits. an online survey of 432 thai travellers, detailing their experiences with phayao’s regional cuisine and focusing on their preferences and satisfaction levels, also considered environmental and economic factors, such as food affordability. the study robustly supports hypotheses h1, h2, and h3, emphasising the importance of engagement with phayao’s culinary offerings. by prioritising authentic and immersive food experiences, phayao strengthens its reputation as a destination for gastronomy tourism, promoting sustainable development and contributing to broader tourism growth. ultimately, the research provides valuable insights into the factors driving gastronomy tourism in thailand. however, as the study is based on self-reported data from a single location, future research should incorporate more diverse samples and extend to wider geographic areas to improve generalisability and deepen understanding of long-term effects. references alonso, a. d., vu, o. t. k., tran, l. n., carrillo, b., & nayak, n. p. 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produces rice as a staple crop, but its water resources are limited, resulting in a severe battle for water between industry and agriculture. in many regions, the overexploitation of groundwater has resulted in a significant lack of water resources, creating a formidable obstacle to agricultural development. to maintain regional food security and sustainable rice agriculture, eight cities in the province of south sulawesi were studied as study units in this work. the study's objective was to establish the optimal layout for rice cultivation regarding agricultural water and land resources. secondly, the author evaluated the cultivated area based on existing agricultural water resources and irrigation development. second, the study determined the layout for water-appropriate rice cultivation. results indicated that the amount of agricultural and irrigated area that available water resources can support has about reached its maximum capacity. ensure the sustainable development of the entire region, mitigate water scarcity, and ensure national food security. yet, the spatial distribution of water demand for rice production has altered in the opposite direction of the quantity of water resources for agriculture per unit of irrigated area and precipitation. this indicates a mismatch between rice production and water availability, necessitating more water to sustain rice agriculture. the growing trend of the gini coefficient shows that water restrictions constrain large-scale expansion of agricultural and irrigated regions. the study suggested focusing on regions with abundant water resources to promote irrigation and waterappropriate rice agriculture further. key words: water suited cultivation; development layout; cultivated land area; rice production; south sulawesi province. 1. introduction agricultural cultivation development involves careful evaluation of the water and soil resources of a given place (ippolito et al., 2021; pramananda et al., 2022). the compatibility of these resources can substantially impact the success and yield of agricultural cultivation (yue & guo, 2021). thus, it is crucial to construct an agricultural cultivation plan based on water and land resources to undertake a comprehensive assessment of the available resources (sabzevar et al., 2021). this evaluation should evaluate the soil type, topography, precipitation patterns, and region's water availability (zobeidi et al., 2022). based on this data, it is possible to identify which crops are most suitable for the region and how they should be cultivated. for instance, regions with heavy precipitation and adequate water resources are good for water-intensive crops like rice (rahman et al., 2022). in contrast, locations with low precipitation and limited water supplies may be more suited for drought-resistant crops like maize and sorghum. based on the unequal global distribution of land and water resources, several regional agricultural developments and water shortage challenges arise (salem et al., 2022). according to the fao report "food and agricultural situation in 2020," severe water scarcity exists in around sixty percent of irrigation regions. in addition, roughly 41% of the world's irrigation water originates from ecological systems as the primary water supply for grain production (syed et al., 2022). to sustainably grow regions and agriculture, it is essential to make efficient and effective use of agricultural land and water resources. furthermore, the type and quality of soil in a region can significantly impact crop yields (kumar et al., 2022). evaluating the soil quality and selecting crops suitable for certain soil conditions is essential. in regions with low soil quality, strategies such as adding organic matter and fertilizers should be considered for soil development (barton & ho, 2020). similarly, regions with steep slopes may require terracing to avoid soil erosion and promote water retention. concurrently, prior scholars have evaluated the value of adequate water resources for crop production in many tropical settings (liu et al., 2022). while designing a pattern for agricultural production, it is essential to account for the current land usage in the area carefully (ippolito et al., 2021). existing agricultural areas may require crop rotation to prevent soil depletion and increase yield. other land uses, such as urban development or conservation, may necessitate adopting alternate cultivation methods, such as container gardening or hydroponics (prabhakar, 2021). in addition, researchers have assessed the impact of soil quality, topography, climate, and existing land usage on the design of agricultural production layouts mailto:idahodiyah@unsil.ac.id agbioforum, 24(3), 2022 | 55 hodiyah. — the common characteristics of land and water resources to develop agricultural cultivation: a case of a developing… (saptutyningsih et al., 2020; sulaiman et al., 2019). yet, there is a dearth of studies matching the characteristics of water and land resources to design an agricultural cultivation pattern. with careful consideration of water supply, the present study enabled the development of a layout that maximizes environmental effects and decides on rice agriculture in emerging nations. in addition, this research was undertaken in indonesia. agriculture has a long history in indonesia and plays a key part in the country's economy. indonesia is an archipelago of approximately 17,000 islands, and its land area is rich in agriculturally-viable natural resources (boedhihartono, 2022). the country's tropical temperature and copious precipitation make it excellent for cultivating various crops (ma'mun et al., 2021). indonesia's interest in organic and sustainable agriculture has recently increased (sinring & buana, 2022). several farmers are implementing these strategies to increase their yields and lessen the environmental effect of agriculture. to boost the value of agricultural products, there has also been an emphasis on generating value-added items, such as processed foods and cosmetics (raihan et al., 2022). 2. aims and objectives moreover, rice is the most significant crop in indonesia, and the country is one of the world's major producers and consumers of rice (pramananda et al., 2022). among important crops are maize, cassava, sweet potatoes, soybeans, peanuts, and vegetables. moreover, indonesia is a leading palm oil, rubber, cocoa, and coffee producer. in indonesia, small-scale farmers dominate agricultural production, and most practice subsistence agriculture (susanto et al., 2021). commercial agriculture is also prevalent, particularly in regions with extensive plantations (ekananda, 2022). despite its substantial contribution to the nation's economy, agriculture in indonesia confronts several obstacles. in the coming years, land scarcity, soil degradation, climate change, and low productivity are anticipated to substantially impact crop yields and production (ekananda, 2022; pramananda et al., 2022). considering these obstacles and the significance of rice as a staple meal for meeting the basic food requirements of the indonesian populace, the current study seeks to examine the cultivated area based on water resources and irrigation development by available agricultural water. in addition, authors typically define the direction for a water-appropriate rice planting arrangement. 3. research significance indonesia is a southeast asian nation comprised of tens of thousands of islands. due to its geographical location and frequent precipitation, indonesia has an abundance of water resources (nasir et al., 2021). yet, the distribution and quality of water vary across the nation, and there are concerns about water scarcity and pollution (basuki et al., 2022). moreover, surface water is indonesia's principal source of freshwater, accounting for around 97% of the country's total water resources. the remaining 3% is provided by groundwater (haryani, 2021). many rivers and lakes constitute the vast majority of its surface water resources. the entire length of the nation's rivers is around 95,000 km (morales-simfors & bundschuh, 2022). the kapuas, barito, and musi rivers are among the most significant. lake toba in sumatra is the largest lake in southeast asia, whereas lake poso in sulawesi is the largest lake in indonesia. nevertheless, many rivers are highly polluted due to industrial and agricultural activity and household garbage (maruf, 2021). moreover, numerous of these lakes are threatened by pollution. in some localities, particularly urban and industrialized zones, groundwater is a significant water supply. the country has multiple aquifers, including the world's largest, the java aquifer system (shoedarto et al., 2022). however, excessive groundwater extraction has caused land subsidence and seawater intrusion in coastal areas. the indonesian government has developed numerous programs and initiatives to enhance water management and conservation, such as the national water resources management strategy and the national clean water movement (surachman et al., 2022). even though indonesia has enormous water resources, there are worries regarding water quality and availability, especially in densely populated places such as jakarta, where demand exceeds supply. it is also caused by pollution and excessive groundwater exploitation. it would be essential to address these concerns to ensure sustainable water management in the country (basuki et al., 2022; haryani, 2021). additionally, water quality in indonesia is highly variable, with certain regions suffering from low water quality due to industrial and agricultural contamination. many people in rural areas still rely on unimproved water sources, such as rivers and ponds, which may be contaminated with bacteria and other pathogens (basuki et al., 2022). climate change is anticipated to have considerable effects on indonesia's water supplies (nasir et al., 2021). increasing temperatures and shifting precipitation patterns may result in more frequent droughts and floods, altering the quantity and quality of water. for all indonesians to have access to safe, dependable water, it is crucial that the country sustainably manages its water resources and invests in infrastructure and technology. 4. structure of review indonesia made some progress in developing and exploiting its water resources between 2000 and 2021, but significant obstacles and issues continued. during this period, indonesia made some strides in developing its water infrastructure by constructing many new dams and reservoirs. yet, many old water infrastructure projects were inadequately maintained, resulting in leaks and water losses (pasaribu, 2021). despite significant progress in water infrastructure development during this period, many indonesians lacked access to safe and reliable water. during this period, water quality remained a serious concern in indonesia, with numerous rivers and lakes affected by industrial and agricultural pollutants. in 2019, agbioforum, 24(3), 2022 | 56 hodiyah. — the common characteristics of land and water resources to develop agricultural cultivation: a case of a developing… according to the national socioeconomic survey, just 69.8 percent of indonesian households had access to upgraded water sources, especially in rural areas (nurhidayati & riyadi, 2022). however, the ministry of environment and forestry reported in 2019 that only 15.4% of indonesian rivers have adequate water quality (sempewo & kayaga). throughout this period, the over-extraction of groundwater continued to be a concern in many regions of indonesia, leading to land subsidence, saltwater intrusion, and other issues. the government initiated several programs to reduce and adapt to these effects, including developing early warning systems and promoting water conservation measures (octavia et al., 2022). the government also enacted laws to minimize groundwater pumping, but enforcement was often lax. yet, the country continued to endure the effects of climate change on its water resources during this time, with more frequent droughts and floods reducing the supply and quality of water (nugroho et al., 2022). in 2018, the indonesian government began the national movement for clean and healthy rivers program to enhance water quality in rivers nationwide (budiman et al., 2023). this program seeks to minimize pollution and improve the sustainable management of water resources. in 2018, a groundwater regulation was enacted to regulate groundwater extraction and avoid saltwater intrusion (basuki et al., 2022). as a response, the government has developed a national action plan on climate change adaptation, which includes steps to improve water resource management and strengthen resilience to climate impacts. the government launched the clean water and sanitation movement in 2020 to expand access to these vital services (nugroho et al., 2022). access to adequate water and sanitation remains a problem in indonesia, particularly in rural regions, and must be addressed philosophically and practically despite gains in infrastructural development. in addition, the current investigation was conducted in the indonesian region of south sulawesi. the water conditions in the indonesian region of south sulawesi might vary depending on location and season (ma'mun et al., 2021). several big rivers and lakes in south sulawesi are significant irrigation and drinking water supplies. the condition of these bodies of water might change with the season and the amount of human activity in the region (sinring & buana, 2022). river and lake water levels are often high during the rainy season (november to april). however, water levels can drop dramatically during the dry season (may to october) (mustafa et al., 2022). in some regions, water pollution is a hazard due to industrial and agricultural operations. generally, the water conditions in south sulawesi are complex and very variable depending on location and season. it is crucial to safeguard and conserve water resources in the region to encourage sustainable water use (dobler et al., 2022). the average water resources in south sulawesi province, indonesia, from 2015 to 2021 are depicted in table 1. table 1. average water resources in the south sulawesi province, indonesia, from 2015-2021 river basin precipitation water resources surface water resources surface water resources/total water resources amount (mm) proportion (%) amount (108 m3) proportion (%) amount (108 m3) proportion (%) (%) jeneerang river 621 23.73 321.1 23.4 197.3 10.5 61.4 walanae river 301 6.31 132.5 4.8 84.4 2.9 63.7 saddang river 732 30.42 823.9 27.5 435.2 37.5 52.8 bila river 857 39.54 1123.1 44.3 613 44.5 54.5 cenrana river 302 / 197.1 / 90 4.6 45.6 5. research method 5.1 the gini coefficient the gini coefficient is a statistical measure of the inequality of a distribution that is often employed to measure disparities associated with population phenomena (blesch et al., 2022). it is a number between 0 and 1, with 0 indicating complete equality (where everyone has the same income) and 1 indicating perfect disparity (where one person has all the income and everyone else has none). to compute the gini coefficient, divide the area between the lorenz curve and the line of perfect equality by the entire area under the line of perfect equality (zhang et al., 2022). the lorenz curve is a graphical representation of the cumulative distribution function a distribution, with the xaxis representing the cumulative population share and the y-axis representing the cumulative income share (kaplaner & steinebach, 2022). the line of perfect equality is a diagonal line that portrays a situation where all individuals have the same income. gn = a/(a+b) is the formula for the gini coefficient (1) where g represents the gini coefficient, a represents the region between the lorenz curve and the line of perfect equality, and b represents the region beneath the line of perfect equality. economists, sociologists, and policymakers often use the gini coefficient to analyze and compare the degree of inequality across various nations, regions, or people (kaplaner & steinebach, 2022). it can also be used to examine changes in inequality over time and assess the efficacy of programs designed to reduce inequality. the smaller values with the gini coefficient closer to the 45-degree line indicate that water and land resources are well-matched. in contrast, the greater values agbioforum, 24(3), 2022 | 57 hodiyah. — the common characteristics of land and water resources to develop agricultural cultivation: a case of a developing… indicate the least compatible degree of land and water resources (kaplan & haenlein, 2010). according to the undp google coefficient criterion, as shown in table 2, there are five classes ranging from excellently matching to very poorly matching, with corresponding gini coefficient value ranges of "[0–0.2), [0.2–0.3), [0.3–0.4), [0.4–0.5), and [0.5,1". table 2: the gini coefficient measuring the level of compatibility between water and cultivated land resources the rages of the gini coefficient the grade of the matching degrees 0 ≤gini coefficient < 0.2 (a) excellently matching 0.2 ≤ gini coefficient < 0.3 (b) well matching 0.3 ≤ gini coefficient < 0.4 (c) relatively reasonable matching 0.4 ≤ gini coefficient < 0.5 (d) poorly matching 0.5 ≤ gini coefficient < 1.0 (e) extremely poorly matching 5.2 the available agricultural water resources and their calculation due to the insignificance of precipitation in meeting the water requirements for agricultural output, irrigation is essential for developing agriculture worldwide, especially in indonesia. thus, water availability in irrigation areas is regarded as a precondition for agrarian development, contributing to the prosperity of the entire region (odhiambo et al., 2021). in addition, using irrigation water in agriculture contributes to resource scarcity because it exceeds the top limits of the total water control value minimally required for crop production in indonesia (ma'mun et al., 2021). due to the limited or scarce nature of irrigation, the indonesian government has established water resource management units that allocate water considerably based on the needs of the region, as shown in the following equations:re_i= r_i/(1/n ∑_(i=1)^n▒r_i )×100 (i=1,2,3,…..n) (2) r_i=(w_i a_i)/ia_i (3) a_i=u_ai/u_i (4) where; “rei = index of the irrigation water resources' availability i = abundance degree per unit area ri = amount of available water resources for agricultural irrigation per unit area in unit i, mm, wi = amount of water resources in unit i104 m3 iai = is the area of effective irrigation in unit i104 ha αi = is the proportion of the amount of agricultural water used in total water use in units i, 104 m3/104 uai and ui = water amount used by agriculture and the total water use amount in unit i, respectively; i is the ith calculated unit, i = 1,2, n; n is the total number of units in the study (n=52).” moreover, rei's value determines the abundance of irrigation water resources. it comprises three grades following the available irrigation water ratio with the region's total water availability, as shown in table 3. if the corresponding grade is less than 0.50, it reflects the extreme shortage. however, grades ranging from 0.5 to 0.9 presents a relatively insufficient value. at the same time, the above 0.90 indexes reflect rich values of the corresponding quality. table 3: the grades of the abundance degree index of the agricultural water resources per unit area the ranges of the index of abundance the grades of the abundance degree the index ≤ 0.5 extreme shortage 0.5 < the index ≤ 0.9 relatively insufficient the index ≤ 0.9 relatively rich 5.3 the water requirements of the rice, along with requirements of water regulations the use of agricultural water resources is intimately related to irrigation areas, meteorological conditions, and crop types. in addition, irrigation water is in high demand for some drops. for example, there is a mismatch between the rice growth and the timing of precipitation. concurrently, rice requires a quantity of irrigation water. to avoid water scarcity for irrigation purposes, rice output must be proportional to the cultivated land and available water. concurrently, the water requirements for rice are determined by reference evapotranspiration (et0) and crop coefficient (kc). in this regard, the fundamental equations include the following: twd = kc × et0 (5) et0 = 0.408∆(rn−g)+γ 900 t+273 u2(es−ea) ∆+γ(1+0.34u2) (6) where: twd = water requirement for rice, mm kc = crop coefficient of rice in the growth period et0 = reference evapotranspiration, mm rn = net radiation on the surface of the crop, mj/(m2 d) g = soil heat flux, mj/(m2 d) t = daily average temperature at 2 m high, ℃ u2 = the wind speed at 2 m high, m/s es = saturated water vapor pressure kpa, ea = is the actual water vapor pressure, kpa ∆ = the inclination of the pressure curve γ = hygrometer or constant, kpa /℃ effective precipitation during rice cultivation indicates how much rainfall may be immediately utilized as irrigation water for growing rice. in contrast, when the agbioforum, 24(3), 2022 | 58 hodiyah. — the common characteristics of land and water resources to develop agricultural cultivation: a case of a developing… minimal water requirements for rice growth cannot be met through effective precipitation, irrigation water becomes the primary demand, for which the calculation is as follows: p = { twd if p > twd p if p ≤ twd } (7) ir = { 0 if ep > twd twd − ep if ep ≤ twd } (8) where: ep = is the effective precipitation in the rice growth period, mm twd = is the water requirement of rice, mm p = the precipitation, mm ir = the amount of irrigation water, mm twd = the water requirement for rice, mm 5.4 data sources and unit of analysis using data-sharing networks, the current study's data collection was based on convenience sampling. the authors investigated eight cities of south sulawesi, indonesia, and screened the sites and sounding areas. choose fifty-six regular weather stations in certain cities with data from 2000 to 2020. in addition, data on the amount of sunlight, average wind speed, relative air humidity, average lowest and maximum temperatures, and daily precipitation were gathered and examined. the average special values of each methodological element were calculated using spatial interpretation. the quantity of water resources and agricultural water usage from 2000 to 2020 was estimated based on regional, municipal, and provincial indonesian water resources bulletins. from the national or provincial statistical yearbook for 2000-2020, the population effective irrigated area, the cultivated area, and the planting area for rice were extracted simultaneously. in addition, the crop coefficient (kc) was included for calculating rice's agricultural water needs. 6. results 6.1 the condition of the water resources development and utilization in south sulawesi province the availability of water resources can vary based on several factors, including rainfall patterns, geography, and land use practices. nonetheless, the coastal regions of south sulawesi tend to have superior water supplies compared to the inland regions. this is because coastal regions receive higher precipitation and have access to the sea, which might provide different water sources (ma'mun et al., 2021). selayar islands regency and pangkajene islands regency are located on islands and have access to seawater that can be desalinated for use. in addition, the selayar islands regency contains several rivers and streams that supply potable water. gowa regency and maros regency are situated in the southern portion of the province and have access to the sea and several rivers and streams. the other regions under investigation are located further inland and may have limited access to water resources, although rivers and groundwater may still be accessible. it is important to note that climate change, population increase, and land use practices can alter the availability of water supplies. therefore, the situation may evolve. in addition, table 4 displays the average water resources in several south sulawesi province regions from 2015 to 2021. table 4: the average water resources from 2015 to 2021 in different regions of south sulawesi province partition of the administrative region 2015-2021 2021 average water resources amount (108 m3) population (104) cultivated area (104 ha) rice output (104t) sown area of rice (104 ha) pangkajene islands regency 639.4 216 182.2 1432 101.2 barru regency 110.2 256 152.1 342 97.3 bone regency 89.2 764 159.6 223 34.7 selayar islands regency 856.5 436 211.5 1765 123.2 gowa regency 523.3 700 178.7 762 103.4 enrekang regency 15.3 225 123.2 143 27.6 pinrang regency 57.6 496 191.7 211 80.2 maros regency 437.1 300 146.4 654 115.7 6.2 cultivated land resources and agricultural water based on change in matching degree hydrological series for the years 2000-2007, 2008-2014, and 2015-2021 were utilized to calculate the gini coefficients. the current farmed areas were also considered to comprehend this shift in the degree of matching. the results of these three hydrological series indicated a good fit between water sources and farmed land. concurrently, the gini coefficients were 0.254, 0.321, and 0.338, indicating an excellent range match for the gini coefficients. from 2000 to 2021, three hydrological ranges showed an increasing gini coefficient trend. it also shows the continued degradation of irrigation water availability, which serious problems have plagued for the past 21 years. the gini coefficient of 0.338 reflects the critical matching stage, even though the results demonstrated a growing trend in water resources due to climate change over the past decade. it also shows the impossibility of expanding the farmed land on a significant scale due to the scarcity of water supplies. also, it indicates that the nations will face severe consequences if they increase their cultivated land on a vast scale. in addition, a downward trend was seen for the relationship agbioforum, 24(3), 2022 | 59 hodiyah. — the common characteristics of land and water resources to develop agricultural cultivation: a case of a developing… between cultivated area and irrigation water resources from 2007 to 2014, which rose by 0.017 between 2015 and 2021. it also highlights a critical situation of available water resources and the difficulties of developing largescale agricultural areas due to inadequate water resource management and a lack of water savings. these data indicate that indonesia is a densely populated nation that has exhausted its crop-irrigation water resources. due to the lack of water resources, improving or expanding the irrigation area and producing more food on a greater scale than its capacity is very difficult. specifically, the south sulawesi region has been viewed as a state with an overabundance of agricultural land, with few opportunities to expand irrigation and produce additional crops or food. 6.3 agricultural available water resources based on spatial distribution and abundance degree index considering the various regions of south sulawesi, the analysis of irrigation water resources and its index of abundance degree revealed a total availability of irrigation water resources in the region of around 3,726 m3/ha. in addition, it reflects approximately 16% of the national average level with a radically unequal geographical distribution that increases from the greatest to the smallest locations. moreover, the results demonstrated that the province of south sulawesi comprises eight regions with substantial irrigation water resource availability. their matching abundance was greater than 0.90. in addition, the results demonstrated an unequal distribution of available irrigation water resources following the irrigation areas. 6.4 agriculture water resources quantity as facilitators of optimization of rice plantation with a large-scale rice plantation and a considerable correlation between the timing of precipitation and the rice's growth rate, abundant irrigation water resources are necessary for balanced growth. in the indonesian province of south sulawesi, the significance of rice plantation layout raises challenges with the logical use of uneven and limited irrigation water distribution. in addition, figure 8 depicts the average water demand for rice in the presence of effective precipitation from 2000 to 2021. according to the data, the litigation water resource availability for rice in the province of south sulawesi fluctuated from 501.6mm with average climatic circumstances from 2000 to 2021. 7. findings the province of south sulawesi in indonesia has a long history of rice production. rice is south sulawesi's primary staple food and an important crop for the local economy. the predominant rice farming method in south sulawesi is wet or paddy cultivation, including water flooding the rice fields (limpo et al., 2022). this kind of rice growing requires substantial water and sophisticated irrigation infrastructure (fahmid et al., 2022). the high rainfall rate and abundance of rivers in south sulawesi make it suited for wet rice farming. rice is normally planted in south sulawesi during the rainy season, which typically begins in november and lasts until april (tualle et al., 2023). they utilize a range of rice seeds, including native and hybrid kinds. the rice fields are prepared by plowing and leveling the soil, followed by flooding. the rice plants are then transferred to the flooded areas and allowed to mature. rice harvesting in south sulawesi often begins in may and continues until june or july, depending on the planted type. rice is threshed and dried before being sold or kept for future use. rice production is essential to south sulawesi's agricultural sector, providing food and income for numerous regional families. even though south sulawesi has a high rainfall rate and several rivers, the availability of water for the irrigation of rice crops might be a problem in some regions. this is due to the province's limited and uneven distribution of water resources. in some regions of south sulawesi, rainwater is used for growing rice. yet, water might become scarce during droughts, resulting in decreased rice yields or crop failures (hasyim et al., 2022). farmers in south sulawesi have used a variety of water management practices to optimize the use of water resources to address this issue. in addition, the data demonstrated a declining correlation between water resources and cultivated land, which ultimately affected agricultural water use in the educated area of the region. in this setting, the gini coefficient declined from 0.254 to 0.338 over 20 years, indicating a well-matched population significantly superior to the cgrade matched population. it also represents a continuing drop in the availability of production water resources in the region to cultivate rice, one of indonesia's staple foods. 8. conclusion concurrently, the results highlighted problems with the planting structure, resulting in food scarcity in the region and raising various questions about food security. the geographical water requirements and fluctuations and their composition for rice cultivation in south sulawesi were evaluated. results also revealed that in some regions of south sulawesi, it is becoming impossible to increase food production to meet the population's needs. these worrying circumstances demonstrate the reliance of rice cultivation on the availability of irrigation water resources and the quantity of precipitation throughout the irrigation process. previously, the research described the adjustment of planting arrangements for various crops based on an examination of meteorological circumstances (susanto et al., 2021). for example, researchers described rice as a staple crop and its annual production as necessary for maintaining food security in indonesia to assist the populace in meeting its basic dietary needs (limpo et al., 2022). in addition to highlighting the impact of climate on rice cultivation as a staple meal in south asian locations, researchers have uncovered encouraging results (ekananda, 2022). in addition to rainwater, the indonesian government and local authorities must manage the availability and quality of water resources for irrigation to sustain rice production over a longer period. agbioforum, 24(3), 2022 | 60 hodiyah. — the common characteristics of land and water resources to develop agricultural cultivation: a case of a developing… 9. contributions and implications rice is a water-intensive crop that requires a lot of water for maximum development and output. hence, managing irrigation water resources is vital to its cultivation (ekananda, 2022). therefore, appropriate irrigation management can assist rice producers in conserving water. farmers can reduce the water needed for rice production while maintaining good yields by employing techniques such as alternating wetting and drying (awd) and controlled irrigation. also, rice producers can increase crop yield when irrigation water is efficiently managed. farmers can employ appropriate water management practices to guarantee that their crops receive the proper amount and timing of water. since inadequate irrigation management methods can lead to water contamination, negatively affecting human health and the environment, these practices should be improved (almeida et al., 2021). effective water management measures can lessen the water pollution caused by rice cultivation. managing irrigation water resources can also aid in water conservation. appropriate irrigation management strategies can reduce water waste and promote sustainable water use. proper irrigation management can also provide rice growers with economic benefits. farmers may decrease their water costs and raise their earnings by conserving water. managing irrigation water resources is also essential for the sustainability of rice production. appropriate water management strategies can increase crop yield, decrease water pollution, conserve water resources, and offer farmers economic benefits. overall, designing an agricultural cultivation plan based on the compatibility of water and land resources is a crucial factor for sustainable agricultural output. by carefully examining available resources and selecting suitable crops and cultivation methods, it is feasible to increase output while reducing environmental damage and supporting the region's long-term agricultural development. similarly, small-scale irrigation facilities, such as canals and reservoirs, are developed to gather and store rainwater for use during the dry season. in addition, farmers have embraced water-efficient practices like alternate wetting and drying (awd), which can reduce water consumption by as much as 30 percent compared to conventional flooded rice growing methods. awd entails regularly allowing the soil to dry up between irrigations, which can also minimize rice field methane emissions. although water resources can be low in certain regions of south sulawesi, farmers are implementing innovative water management practices to maximize available water resources and maintain rice agriculture in the region. the government and many groups should collaborate to address these concerns and encourage sustainable agricultural methods. similarly, the indonesian government should pursue numerous policies and initiatives to address these issues to raise agricultural productivity and farmer incomes. they include fertilizer and seed subsidies, extension and training services, and the building of irrigation infrastructure. in addition to land reform, lending programs, and infrastructure development, the government should pursue numerous policies and initiatives to encourage agricultural development. 10. future research work this study evaluates the arrangement of farmland irrigation regions and the evolution of rice cultivation, particularly on water and land resources. however, additional investigation of other factors influencing rice farming and topography is required. 11. limitations in addition to the natural characteristics of the land and water resources, evaluating the cultural and economic elements that can affect agricultural productivity is essential. this may involve a review of local markets and customer preferences, as well as an examination of the existing infrastructure and transportation networks. it is possible to design a cultivation pattern that considers the area's particular qualities if these aspects are considered. this may involve crop rotation, 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a critical ecological challenge that impedes the sustainable development of the nation's economy. despite its significance, there remains a paucity of research examining farmers' involvement in desertification control from a social psychology perspective. drawing upon the theory of planned behaviour (tpb) and the norm activation theory (nat), this study proposes a comprehensive model to investigate farmers' participation in anti-desertification efforts. utilizing survey data from 348 participants, the study evaluates the efficacy of the proposed model. findings indicate that the model is effective in elucidating farmers' engagement in desertification prevention, as influenced by environmental risk perception, subjective norms, and perceived behavioural control. additionally, personal norms function as partial mediators, positively correlating with environmental risk perception and the normative theory concerning farmers' roles in combating desertification. notably, the model designed for assessing farmers' participation improves the conceptual model's explanatory power by 12.4 percent. the theoretical framework, termed responsible action theory, identifies personal norms and environmental risk perception as pivotal variables within the model. consequently, government agencies involved in desertification prevention should emphasize moral norms and develop public education programs that convey ecological information pertinent to desertification processes. keywords: farmers, desertification control, theory of planned behaviour, norm activation theory. introduction desertification is a landscape phenomenon characterized by vegetation degradation, exposed bedrock, and a reduction or complete loss of land productivity due to various factors (dai et al., 2017; wang, li, & li, 2003). it has emerged as a significant ecological challenge that hampers the sustainable development of china’s economy (wu et al., 2011). the processes and causes of desertification are multifaceted, encompassing both natural forces and social influences. among the key contributors is high-intensity farming, which has overstressed the land's capacity to sustain population density over many years, particularly in southwestern of china (cheng et al., 2010; li et al., 2016). thus, farmers are not only crucial stakeholders in the environmental issues associated with desertification but also principal actors in addressing the challenges posed by this phenomenon (bekele & drake, 2003). hence, it is imperative to further motivate farmers and enhance their enthusiasm for participating in desertification control efforts (yu & li, 2015). while existing research predominantly focuses on engineering and technological solutions to desertification, there is a notable lack of exploration into the social psychological aspects of this issue. to address this gap, the present study, grounded in the tpb and nat, aims to comprehensively evaluate the activation of moral, behavioural, normative, and control beliefs. this approach seeks to provide a thorough understanding of farmers' participation in desertification control. literature review and research hypotheses the tpb was put forward by ajzen (1991), and posited that individual behaviour is primarily determined by behavioural intention. the respective model postulates that attitudes towards the behaviour, subjective norms, and perceived behavioural control influence behaviour indirectly through their impact on the behavioural intention. tpb has proven to be a significant theoretical model for examining factors affecting individuals' pro-environmental behaviours, including sustainable travel (chuang, chen, & chen, 2018), environmental conservation among university students (effendi et al., 2020), pro-environmental behaviour among university staff (aziz et al., 2021), pro-environmental behaviour among rural campers (moghimehfar, halpenny, & walker, 2018), recycling (cheung, chan, & wong, 1999), and water conservation (trumbo & o'keefe, 2001), among others. this study extends the application of tpb to investigate farmers' participation in desertification control. it is hypothesized that the level of farmer involvement in desertification control is influenced by their attitudes toward the behaviour, the social norms related to it, and their perceived ease of implementing desertification countermeasures. according to the norm activation theory proposed by schwartz (1977), moral norms play a critical role in guiding individual behaviour. this theory emphasizes the importance of variables such as awareness of consequences, the attribution of responsibility for these consequences, and the internalized norms that influence mailto:zeng.yizhou@rmutr.ac.th agbioforum, 26(1), 2024 | 148 fu. linjiang et al.study on the influence of farmers' participation in desertification control activities: integration of theory of planned individual actions. personal norms refer to the ethical standards held by individuals that motivate them to perform or abstain from specific behaviours. awareness of consequences is defined as an individual’s recognition that their actions can have positive or negative impacts on others, while responsibility attribution involves the extent to which individuals assign blame or accountability for their behaviour. this theory has been widely applied in studies on positive behaviour change, including proenvironmental behaviour on social media platforms like twitter and facebook (li & fang, 2022) and snapchat, pro-environmental consumer behaviour (setiawan, 2021), sustainable farming (savari et al., 2023), and environmental commitment behaviours. this paper examines factors influencing farmers' participation in desertification control, using the tpb and nat. tpb suggests that behaviour is influenced by attitudes, perceived social norms, and self-efficacy (ajzen, 1985; shah, rabari, & patel, 2022). in contrast, nat posits that behaviour is driven by moral considerations, which arise from the perception of consequences and a sense of responsibility (neamah et al., 2022; schwartz, 1977; tanjung et al., 2022). both theories converge on the premise that rationality and morality significantly influence human actions (hajar et al., 2023; nivette et al., 2021). several studies have effectively combined tpb and nat to explain social behaviours. aligba & fusch (2017), for instance, integrated these theories to investigate the entrepreneurial motivations of young people, demonstrating that the combined framework offered strong explanatory power. similarly, shanka & gebremariam kotecho (2023) applied tpb and nat to predict residents' compliance with covid-19 prevention measures, showcasing the high predictive utility of the integrated model. consequently, this study adopts tpb and nat as its theoretical framework to examine the rational and ethical decision-making processes of farmers in the context of desertification control. the application of tpb to predict farmers’ participation in desertification control in this study is justified by its proven predictive efficacy in understanding individual behaviours related to environmental protection (bamberg, ajzen, & schmidt, 2003; street, 2023). prior research has demonstrated that extending tpb enhances its explanatory power, particularly in contexts involving pro-environmental actions (bird et al., 2018; hamilton, van dongen, & hagger, 2020). for instance, maleksaeidi & keshavarz (2019) incorporated perceived threats of intensive agriculture into the tpb framework, revealing that such threats significantly motivated farmers' intentions to conserve biodiversity. cognitions play a crucial role in the tpb model, with behavioural intention serving as a precursor to actual behaviour, which is directly influenced by tpb constructs (muthuswamy & nasrulla, 2023; rhodes & blanchard, 2006). self-observation measurements have been recommended as independent variables in the literature due to their functionality (alshehri, 2024; amin & chewning, 2015; khatatbeh et al., 2024; wu et al., 2017). consequently, this study does not employ behavioural intention but instead evaluates enhanced farmer involvement in desertification control using two independent variables and one dependent variable derived from the tpb model: subjective norms, perceived behavioural control, and actual behaviour. within the nat model, three variables—risk perception, personal norms, and individual behaviour—are employed to assess the influence of moral considerations on farmers’ participation in desertification control. this research distinguishes itself by integrating the tpb and the nat to predict the level of farmers’ participation in combating desertification. in the context of desertification control, environmental risks associated with desertification may serve as significant antecedents to individual and subjective norms among farmers. consequently, integrating tpb and nat offers a more comprehensive framework for accurately describing and predicting compliant social behaviour. although tpb does not inherently include nat within its structure, figure 1 illustrates the proposed research model that incorporates both theories to enhance predictive accuracy. h1: the findings show that aspects of the tpb -perceived behavioural control, subjective norms, and attitudes have a positive association with farmers’ engagement in the fight against desertification. h2: norm activation theory study shows that there is a positive relationship between nat (compliance with farms’ desertification control behaviour, personal norms, environmental risk perception. h3: hypothesis 2 posited that the integrated model would have a higher ability in predicting farmers’ participation in desertification control than tpb and nat. as hypothesized, the findings indicate that the integrated model demonstrates greater explanatory power in predicting farmers’ participation in desertification control compared to the use of tpb or nat alone. figure 1: the integrated model of tpb and norm activation theory. environmental risk perception (rp) subjective norm (sn) perceptual behavior control (pbc) personal norm (pn) control behavior of stony desertification (csd) agbioforum, 26(1), 2024 | 149 fu. linjiang et al.study on the influence of farmers' participation in desertification control activities research subjects and research methods farmers in bijie city, guizhou province, china, were selected as the target population for this study due to the region’s severe impact by desertification and its status as having the largest area under control in china, making it a representative and significant sample. according to the 2021 statistical yearbook of bijie city, the total permanent resident population was 361,700, all of whom are considered farmers. the sample size was determined using yamane's (1973) formula, resulting in a required sample size of 399 respondents. to account for potential invalid questionnaires, an additional 10% of the total sample size was added, following the guidelines of israel (1992), expanding the sample to 438 individuals. this study employs a quantitative research approach to assess the relative degree of the constructed variables using a 5point likert scale. the questionnaire items were developed based on a comprehensive review of relevant literature. responses are rated from 1 to 5, labelled as "strongly disagree," "disagree," "neither agree nor disagree," "agree," and "strongly agree." the questionnaire is structured affirmatively; the first section collects demographic information such as gender, age, education level, and income, while the second section measures variables based on the tpb. this section evaluates farmers' perceived factors influencing their intention to participate in desertification control, including subjective norms, perceived behavioural control, and perceived environmental risks. the specific items used for measurement are outlined in the accompanying table. to ensure the validity and reliability of the survey data, reliability analysis and validity testing are conducted, followed by a correlation analysis of the variables using the statistical package for the social sciences (spss 19). further analysis involves constructing a structural model (sm) and performing confirmatory factor analysis (cfa) using spss software to validate the hypotheses and assess the model's fit. results and data analysis descriptive statistics of research subjects table 1 presents the descriptive statistics of the research participants, showing a relatively balanced gender distribution. age distribution was fairly even: 12.8% were 18 years old, 19.2% were 18-30, 15.3% were 31-40, 16.4% were 41-50, 18.3% were 51-60, and 18% were over 60 years old. the educational attainment of the participants was generally low, with 80.5% having completed junior high school, vocational school, or lower levels of education. the economic income of the participants' families was predominantly low, with 85.4% earning below 5,000 yuan annually. table 4 presents the mean scores of the survey scale variables related to farmers' participation in the desertification control research model. the mean scores were as follows: environmental risk perception (rp) of desertification at 3.5485, subjective norms (sn) at 3.5647, perceived behavioural control (pbc) at 3.3658, personal norms (pn) at 3.8166, and desertification control behaviour (csd) at 3.8370. these findings suggest that the participating farmers generally demonstrated a willingness to engage in desertification control efforts. table 1: descriptive statistics. n percentage（%） gender male 220 50.2 female 218 49.8 age under 18 56 12.8 18-30 84 19.2 31-40 67 15.3 41-50 72 16.4 51-60 80 18.3 over 60 79 18 education background primary school or below 210 47.9 junior high school 143 32.6 high school 67 15.3 bachelor’s degree or higher 18 4.1 monthly income 1,000 yuan or below 102 23.3 1001 3000 yuan 150 34.2 3,001 5,000 yuan 122 27.9 5001 7000 yuan 37 8.4 7001 9000 yuan 20 4.6 9001 yuan and above 7 1.6 reliability and validity tests the item coefficients of the survey scale and cronbach's alpha were computed to assess the internal consistency, reliability, and validity of the data. as indicated from table 4, the statistics of the cronbach's alpha for environmental rp was 0.968 while that of sn was 0.918, pbc was 0.847, pn was 0.902 and csd was 0.938. overall, that of the theoretical framework of cronbach's alpha was 0.931. all cronbach's alpha values exceeded the threshold of 0.7, as recommended by wenbin & guoping (2017), indicating strong reliability and validity of the survey data. additionally, previous research supports the increased reliability of these findings, demonstrating that motivated employees positively impact organizational performance. to verify this, the hypothesis was tested using cfa. the results indicated that all the cronbach's alpha coefficients for the variables in the model were within the range of 0.703 to 0.945, hence above the acceptable threshold of 0.7 suggested by a prior agbioforum, 26(1), 2024 | 150 fu. linjiang et al.study on the influence of farmers' participation in desertification control activities: integration of theory of planned study, which showed satisfactory internal consistency reliability. discriminant validity was checked as shown in table 3, where it can be observed that the absolute values of the correlations between latent variables were less than the square root of the ave for each variable. this result suggests that the model expresses discriminant validity and allows deriving that the latent variables studied are distinct from one another. table 2: reliability, validity, and confirmatory factor analysis of the questionnaire measurement scale. constructs constructs items loading cronbach's alpha cr ave environmental risk perception rfp1: desertification has a strong effect on the surrounding ecological system or environment. 0.896 0.968 0.968 0.770 rfp2: the people living in the surrounding regions are currently experiencing precise desertification effects to an extent of fighting 0.919 rfp3: the impacts of desertification include heavy losses of economical and property the residents experience in terms of their means of income and crop production. 0.778 rlp1: desertification causes loss of soil quality and reduced productivity of land. 0.868 rlp2: desertification results in severe soil erosion 0.910 rlp3: desertification cause environmental disasters such as land sliding, floods and droughts. 0.929 rcp1: due to over cultivation by farmers the land turn into desertification. 0.885 rcp2: desertification is caused by intense farming approaches that farmers use in agriculture. 0.887 rcp3: excessive practices by farmers related to agriculture led to desertification. 0.814 subjective norm sn1: i am glad that those people whose opinion i care about want me to be involved with rocky desertification control. 0.884 0.918 0.919 0.792 sn2: people who have expectations from me hope that i will participate in rocky desertification control activities. 0.920 sn3: most of the people dear to me expect that i should participate in rocky desertification control activities. 0.864 perceptual behavioural control pbc1: i think that i am capable of minimising the extent of the expansion of rocky desertification area. 0.815 0.847 0.849 0.532 pbc2: i know the ample ways to deal with the problem of rocky desertification reduction. 0.792 pbc3: i can expand the area of plantation and afforestation if i will. 0.658 pbc4: i have adequate farmland on which i can feed my dependants. 0.678 pbc5: i have sufficient time and opportunities to engage in rocky desertification control. 0.689 personal norms pn1: i think that it is my moral responsibility to contribute to the fight against desertification no matter what others say or do. 0.877 0.902 0.903 0.757 pn2: i believe that controlling desertification through controlled actions is the right thing to do 0.881 pn3: participating in desertification control activities will make me feel good. 0.853 control of stony desertification csd1: in course of the next agriculture activities, i will avoid unnecessary and hasty reclamation of the wasteland 0.788 0.938 0.895 0.740 csd2: during the next agricultural operations, i shall refrain from actions like arbitrary walking about, chopping, and destroying top cover vegetation. 0.891 csd3: during the next agricultural practices, i will effectively incorporate desertification preventative measures of the higher powers like the closing of the forest for regeneration, conversion of farmland for their afforestation and other measures to forest. 0.897 total 0.931 table 3: discriminant validity test. rp sn pbc pn csd rp 0.877 sn 0.370 0.890 pbc 0.162 0.261 0.729 pn 0.369 0.394 0.272 0.870 csd 0.451 0.577 0.350 0.575 0.860 correlation analysis correlation analysis among the variables in the theoretical model was conducted using the pearson correlation coefficient, as detailed in table 4. the table reveals that each pair of latent variables exhibited significant correlations. table 4: correlation analysis. variable mean pn csd rp sn pbc pn 3.8166 1 csd 3.8370 0.575** 1 rp 3.5485 0.369** 0.451** 1 sn 3.5647 0.394** 0.577** 0.370** 1 pbc 3.3685 0.272** 0.350** 0.162** 0.261** 1 validation of research hypotheses and effects analysis the research employed sem and amos 26 for testing the model and analysing the data. table 5 presents the results of the model fit analysis. all fit indices met the specified criteria. specifically, the model showed: cmin/df = 2.00, rmsea = 0.065 (which is below the threshold of 0.08), cfi = 0.953 (above the acceptable value of 0.90), tli = 0.946 (also exceeding 0.90), and ifi = 0.953 (greater than 0.90). these results indicate that the model fits the data well. agbioforum, 26(1), 2024 | 151 fu. linjiang et al.study on the influence of farmers' participation in desertification control activities table 5: fitting test of the research model for farmers' participation in desertification control. observation indicators evaluation indicators model values acceptable good cmin/df <5.00 <3.00 2.873 rmesa <0.08 <0.05 0.065 cfi [0.7, 0.9] >0.9 0.953 gfi [0.7, 0.9] >.9 0.892 agfi [0.7, 0.9] >.9 0.864 tli [0.7, 0.9] >.9 0.946 ifi [0.7, 0.9] >.9 0.953 direct effect test the results of the hypothesis testing are presented in table 6. the standardized path coefficients for the variables— such as risk perception regarding desertification, subjective norms, perceived behavioural control, personal norms, and activities undertaken to mitigate desertification—are reported as follows: 0.264 (p < 0.001), 0.182 (p < 0.001), 0.184 (p < 0.001), and 0.083 (p < 0.001), respectively. in the case of male participants, the coefficients were as follows: 0.264 (p < 0.001), 0.182 (p < 0.001), 0.184 (p < 0.001), and 0.083 (p = 0.038). for female participants, the coefficients were 0.344 (p < 0.001), 0.173 (p < 0.001), and 0.372 (p < 0.001). these factors have a direct and positive impact on farmers’ personal moral norms regarding desertification. consequently, hypotheses h1 and h2 are supported, suggesting that these variables are significant predictors of farmers' engagement in desertification control activities. table 6: hypothesis testing of the research model for farmers' participation in desertification control. paths std. estimate se c.r. p results rp → pn 0.264 0.045 5.315 0.000 yes rp → csd 0.182 0.029 4.455 0.000 yes sn → pn 0.272 0.048 5.161 0.000 yes sn → csd 0.361 0.032 7.931 0.000 yes pbc → pn 0.173 0.058 3.426 0.001 yes pbc → csd 0.139 0.036 3.406 0.001 yes pn → csd 0.372 0.036 7.955 0.000 yes mediation effect test the findings from the hypothesis testing are detailed in table 7. the results reveal that personal norms partially mediate and positively moderate the relationship between environmental risk perception and farmers' participation in anti-desertification efforts. additionally, personal norms also serve as a partial mediator and exhibit a positive moderating effect on the relationship between subjective norms and farmers' involvement in desertification control, as well as between perceived behavioural control and farmers' participation in these efforts. these findings highlight the significant role of personal norms in enhancing the impact of environmental risk perception, subjective norms, and perceived behavioural control on farmers' engagement in desertification control programs. table 7: mediation effect test of the research model for farmers' participation in desertification control. item total effect mediation effect direct effect test conclusion rp=>pn=>csd 0.234** 0.074 0.159** partial mediation sn=>pn=>csd 0.352** 0.070 0.281** partial mediation pbc=>pn=>csd 0.224** 0.061 0.163** partial mediation p <0.05 p<0.01 test of the explanatory power of the integrated model the results of the hypothesis testing, as shown in table 8, demonstrate that the integrated model accounted for 52% of the variance in farmers' participation in desertification control (r² = 0.52, p < .01). this represents a 1.5% increase in explanatory power over the tpb model (r² = 0.505, p < .01) and a significant 12.4% improvement over the nat model (r² = 0.396, p < .01) (dao-de, 2000). these findings indicate that the integrated model offers a more comprehensive explanation of farmers' involvement in desertification control compared to the tpb and nat models. consequently, hypothesis h3 is supported. table 8: mediation effect test for the research model of farmers' participation in desertification control. model r2 integrated model of tpb and nat 0.52 tpb model 0.505 nat model 0.396 discussion implication to theories this study seeks to identify the social psychological and rational moral factors influencing farmers' participation in desertification control. to enhance predictive accuracy, the research integrated the tpb and nat, demonstrating that these combined models accounted for over 52% of the variance in farmers’ engagement in desertification control efforts. the integrated model explained a significantly higher proportion of variance in participation compared to either the tpb or nat models individually. the study found that farmers’ actions were driven by rational considerations, self-preservation, and moral persuasion concerning desertification control. the results reveal that subjective norms and perceived behavioural control were influential in shaping farmers’ compliance behaviour agbioforum, 26(1), 2024 | 152 fu. linjiang et al.study on the influence of farmers' participation in desertification control activities: integration of theory of planned regarding desertification control. notably, personal norms directly contributed to farmers' engagement in desertification prevention activities and only partially mediated the relationships between subjective norms environmental, risk perception, and perceived behavioural control, contrary to pragle's (2004) findings that neither subjective norms nor perceived behavioural control impacts behaviour. this research uniquely integrates tpb and nat to deepen the understanding of farmers' desertification control practices, highlighting how moral and rational factors impact their participation. the inclusion of moral dimensions increased the explanatory power by 12.4%, enhancing the overall model’s efficacy. implication to practitioners this study offers substantial practical implications for government agencies and departments engaged in desertification control. the findings provide insights into strategies for increasing farmers' participation and enhancing the effectiveness of desertification control initiatives. firstly, it is crucial to prioritize the dissemination of information and education regarding desertification and its ecological impacts. this approach will help farmers develop a comprehensive understanding of the economic and environmental risks posed by desertification. secondly, government agencies should focus on fostering both personal and social norms related to desertification control. encouraging the development of these norms will enhance farmers' engagement and commitment to desertification prevention efforts. limitations and implications of future research although this research offers both theoretical and practical insights, it is not without limitations due to various constraints encountered by the researchers. this study was exclusively quantitative, relying on cross-sectional data collected over a relatively brief period. such research methods may oversimplify complex social issues and potentially overlook the underlying causes of these problems. consequently, future research is recommended to incorporate mixed methods approaches to provide a more comprehensive understanding. despite the high representativeness of the study's 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(2015). study on farmers’ behavior in rocky desertification control. ningxia journal of agriculture and forestry science and technology, 56(3), 37-40. retrieved from https://caod.oriprobe.com/articles/44919423/a_ study_of_farmers__household_behavior_in_pr ocess_.htm https://doi.org/10.1080/13548506.2021.1946571 https://doi.org/10.1080/13548506.2021.1946571 https://cirrj.org/menuscript/index.php/cirrj/article/view/683 https://cirrj.org/menuscript/index.php/cirrj/article/view/683 https://cude.es/submit-a-manuscript/index.php/cude/article/view/233 https://cude.es/submit-a-manuscript/index.php/cude/article/view/233 https://doi.org/10.1080/089419201753242797 https://doi.org/10.1080/089419201753242797 http://www.dsjyj.com.cn/en/article/id/dsjyj_9247 http://www.dsjyj.com.cn/en/article/id/dsjyj_9247 https://doi.org/10.18402/resci.2017.05.08 https://doi.org/10.18402/resci.2017.05.08 https://doi.org/10.1177/0193945916672661 https://doi.org/10.1177/0193945916672661 https://doi.org/10.1007/s11769-011-0496-7 https://caod.oriprobe.com/articles/44919423/a_study_of_farmers__household_behavior_in_process_.htm https://caod.oriprobe.com/articles/44919423/a_study_of_farmers__household_behavior_in_process_.htm https://caod.oriprobe.com/articles/44919423/a_study_of_farmers__household_behavior_in_process_.htm the impact of social forest navigation and community engagement in cultivating empowered ecosystems for forest reclamation triumph agbioforum, 26(1): 79-91. © 2024 agbioforum widada — the roles of social forest navigation and community engagement in achieving successful forest reclamation… the roles of social forest navigation and community engagement in achieving successful forest reclamation and empowered ecosystems dharma widada mulawarman university, samarinda, indonesia. email: dharma.widada@unmul.ac.id orcid id: https://orcid.org/0009-0003-9024-0090 this study explores the complex interrelationships among empowered ecosystems (ee), social forest navigation (sfn), community engagement (ce), and forest reclamation (fr) with the aim of enhancing community forests in indonesia. to test the proposed hypotheses, the research utilized confirmatory factor analysis (cfa) and path analysis within a quantitative framework. the results reveal that both sfn and ce exert significant positive direct effects on fr and ee. additionally, fr serves as a crucial mediating variable in the relationships between ce and ee, as well as between sfn and ee. these findings underscore the vital role of social and community initiatives in facilitating effective forest reclamation, thereby empowering ecosystems. the implications of this research are substantial for community leaders, policymakers, and environmental organizations involved in sustainable forest management. by offering a more nuanced understanding of the intricate dynamics linking community involvement, forest reclamation, social engagement, and empowered ecosystems, this study contributes to the existing body of knowledge. however, it is important to note the study's limitations, which include a focus on a specific geographic region and reliance on self-reported data. despite these constraints, the thorough examination of mediating effects distinguishes this research and advances the theoretical framework for community forest empowerment. furthermore, this work lays a significant foundation for future studies aimed at deepening our understanding of the interplay between community empowerment and environmental conservation in diverse contexts. keywords: sfn, ce, ee, fr. introduction in recent years, initiatives aimed at mitigating the detrimental impacts of deforestation and environmental degradation have increasingly focused on fr (ukhurebor et al., 2022). the persistent degradation of forest ecosystems over recent decades has spurred a global movement advocating for sustainable practices (duguma et al., 2019; nguyen et al., 2023). communities play a pivotal role in fr by providing direct support and shaping public perceptions of these efforts (nzyoka et al., 2021). moreover, the emergence of social media and other digital communication platforms has significantly transformed the ways individuals engage with one another. according to lewis hood & gabrys (2024), social forest navigation, which includes online interactions on platforms such as instagram, twitter, and facebook, is increasingly influencing public perceptions of environmental issues, including forest reclamation. song et al. (2021) further assert that the public’s engagement with reforestation initiatives is significantly affected by the discussions and information disseminated through these online channels. community involvement is essential for the success of fr efforts, irrespective of their scale (stanturf et al., 2019). active participation from local communities, stakeholders, and individuals can greatly facilitate the restoration of damaged forest ecosystems (reyes‐garcía et al., 2019). such involvement may manifest through direct engagement in field activities as well as online advocacy and support. moewaka barnes et al. (2021) and zhang, yu, & tian (2023) highlight that empowering communities requires more than merely possessing technical knowledge of reclamation; individuals must also have the capacity to understand, manage, and actively participate in the development and preservation of their environment. in indonesia, sfn is gaining traction, with platforms like facebook, twitter, and instagram playing a substantial role in shaping public discourse around fr (dermawan, hospes, & termeer, 2022; erbaugh, 2019; sahide et al., 2020). by participating in online discussions and engaging in practical activities such as tree planting and environmental monitoring, individuals cultivate a stronger sense of community empowerment and a deeper understanding of the importance of forest reclamation. despite the ongoing challenges and conflicting interests among various stakeholders, successful fr efforts in indonesia have been bolstered by collaborative conflict resolution and government support (dhiaulhaq, mccarthy, & yasmi, 2018; fisher et al., 2017; fisher et al., 2018). notably, the private sector has also contributed essential financial resources and expertise to these initiatives. the growth of ecotourism in indonesia has further expanded opportunities for local communities to engage in reforestation, environmental protection, and economic empowerment (surya et al., 2020). within the broader context of forest reclamation, indonesia is actively exploring innovative approaches to foster resilient ecosystems through advanced technologies and cross-sector collaboration (firdaus, wibowo, & rochmayanto, 2017; wiati et al., 2022). while research mailto:dharma.widada@unmul.ac.id https://orcid.org/0009-0003-9024-0090 agbioforum, 26(1), 2024 | 80 widada — the roles of social forest navigation and community engagement in achieving successful forest reclamation… indicates that collaborative conflict resolution, government support, private sector involvement, ecotourism, and advanced technology all contribute positively to fr in indonesia, significant gaps remain. first, the effectiveness of collaborative conflict-resolution strategies among stakeholders warrants further investigation. second, while private sector engagement is recognized as crucial, there is a need for deeper exploration of its impacts, motivations, and potential conflicts. third, although ecotourism is linked to forest reclamation, more research is necessary to understand its empowering effects on local communities, particularly regarding socioeconomic impacts and sustainability. additionally, further examination of beneficial technologies, the challenges of their integration, and the dynamics of crosssector collaboration is essential. lastly, the long-term ecological, social, and economic sustainability of ee, along with potential barriers to their development, require investigation. addressing these research gaps will provide valuable insights for policymakers, practitioners, and researchers focused on sustainable development and environmental conservation in indonesia. currently, the complex relationship between social forest navigation and community participation in empowering communities concerning fr has not been comprehensively explored in the literature. therefore, the primary objective of this study is to bridge this knowledge gap and contribute to our understanding of how online dynamics intersect with community participation to enhance the effectiveness of fr efforts. by examining the critical roles of ce and social forest navigation, this study aims to lay a foundation for developing more effective policies and practices within the broader context of environmental and forest conservation. literature review and hypotheses development the relationships that social forest navigation has with empowered ecosystems and forest reclamation sfn was introduced by abrams et al. (2020) to depict the intricate network of relationships that emerges when individuals within forest communities collaborate. this concept emphasizes a dynamic process in which community members actively shape and navigate their social interactions, community dynamics, and collaborative initiatives related to forest management. the notion of ee, as explored by khalid et al. (2019) and guerreiro & botetzagias (2018), underscores a direct link between community empowerment and effective environmental stewardship. their research suggests that communities that experience higher levels of empowerment are more likely to successfully advance their forest reclamation projects. furthermore, significant contributions to the discourse on forest reclamation have been made by wang (2023) and norah & mukanzi (2019). norah and mukanzi's (2019) investigation into participatory approaches to forest restoration reinforces the idea that the success of forest reclamation initiatives is enhanced when a greater number of community members engage in the process. similarly, wang (2023) research on adaptive management strategies further enriches our understanding of community-driven approaches in this domain. scholars across various disciplines have examined the interconnected dynamics among empowered ecosystems, sfn, and fr. munandar (2021) made a noteworthy contribution by analysing the reciprocal relationship between online discourse and community empowerment. this work supports the hypothesis that sfn positively correlates with both ee and successful outcomes in fr initiatives. building on the insights from these scholars, we propose the following hypotheses: h1a: sfn has an effect on fr. h1b: sfn has an effect on ee. the relationships that ce has with ee and fr ce as the process of involving local individuals in decision-making and activities that impact their daily lives and the broader community (jackson et al., 2018; siregar et al., 2022). in the context of forestry projects, sustainable development, and environmental conservation, ce aims to instil a sense of ownership among locals, thereby encouraging active participation in these initiatives (haji, valizadeh, & hayati, 2021; ilyas & sampurno, 2022). understanding the intricate relationships between community engagement, forest reclamation, and ee is essential for developing effective environmental management strategies. the significance of ce for environmental initiatives has been underscored by researchers such as macfarlane (2020) and maulana & wardah (2023). maulana & wardah (2023) examined the role of social capital in fostering community engagement, while macfarlane (2020) study highlighted the positive effects of community participation in decision-making processes. both studies support the assertion that increased community involvement enhances the success of fr projects. the concept of ee has been further elaborated upon by kohsaka & rogel (2021) and muhamad khair, lee, & mokhtar (2020). kohsaka & rogel (2021) emphasized the importance of local knowledge and practices in creating ee, while muhamad khair et al. (2020) focused on the relationship between community empowerment and sustainable ecosystem management. these studies suggest that sustainable fr initiatives are positively correlated with the degree of community empowerment. the crucial role of community involvement in forest restoration has been well-documented in the works of disterheft et al. (2015) and dreiss et al. (2017). disterheft et al. (2015) highlighted the importance of collaborative approaches for achieving effective outcomes, whereas dreiss et al. (2017) concentrated on strategies for adaptive management. collectively, this literature reinforces the idea that fr efforts are unlikely to succeed without robust community participation. the interdependent nature of community involvement, forest restoration, and ee is emphasized in the literature. surya et al. (2020) propose that community involvement and the development of ee can be viewed as two facets of the same concept. this agbioforum, 26(1), 2024 | 81 widada — the roles of social forest navigation and community engagement in achieving successful forest reclamation… relationship supports the notion that engaging communities is critical for achieving self-sustaining ecosystems and effective forest restoration initiatives. the research suggests that community involvement has multifaceted and complementary ties to both forest restoration and ee. insights from these studies can inform the formulation of hypotheses to guide empirical research and promote more sustainable and integrated approaches to forest management and environmental conservation. the proposed hypotheses are as follows: h2a: ce has an effect on fr h2b: ce has an effect on ee the relationship between fr and ee according to ukhurebor et al. (2022), fr entails the intentional restoration of degraded or deforested areas back to their original ecological condition, thereby enhancing their ecological functionality. successful fr is contingent upon various factors, including community involvement, government regulations, and the ecological resilience of the species being reintroduced (mañaspellejero & paz, 2022; purnamasari et al., 2022; rawat et al., 2022). ees are characterized by the active participation of local communities in the restoration and management of their natural environments (broeckhoven & cliquet, 2015; jánský & tomášek, 2023; pinilla burgos, 2022). this empowerment involves equipping communities with the necessary knowledge, resources, and decision-making authority, enabling them to significantly contribute to the sustainability and biodiversity of their ecosystems (hussein et al., 2022; katırcı, saymanlıer, & dağ, 2023; petriello et al., 2021). the existing literature suggests a strong interdependence between fr and ees, indicating that community participation is essential in reclamation efforts. by providing both economic and ecological empowerment to local communities, these initiatives foster a sense of ownership and accountability, which are critical for the success of fr and the long-term resilience of restored areas. research by barrett et al. (2019) and moeliono et al. (2023) further underscores the positive relationship between ecosystem empowerment and community engagement. barrett et al. (2019) examined communityled reclamation initiatives, emphasizing the importance of community empowerment in sustaining ecological restoration. similarly, moeliono et al. (2023) highlighted the necessity of empowering local communities to act as environmental stewards, which contributes to the overall success of fr efforts. the relationship between fr and ees is also significantly shaped by government policies and institutional support. wambwa, mundike, & chirambo (2023) emphasized the importance of establishing clear policies that promote community involvement and empowerment in reclamation initiatives. effective policies foster an enabling environment that encourages communities to actively participate in and contribute to fr projects. in summary, the literature indicates a mutually reinforcing connection between fr and ees, wherein the success of reclamation initiatives is closely tied to the engagement of empowered communities, supported by well-designed policies and institutional frameworks. understanding this interdependent relationship is vital for developing sustainable strategies for environmental preservation and ecosystem management. therefore, we propose the following hypotheses: h3: fr is related to empowered ecosystems fr as a mediator the significance of community involvement in fr projects has been emphasized by sapkota, stahl, & rijal (2018), while korneeva & belyaev (2023) examined the adaptive strategies essential for successful forest reclamation. these studies suggest that fr may serve as a mediating factor in the relationship between ce and ees. zauhar & santoso (2023) further explored the intricate connections among forest reclamation, ees, and community engagement, finding that fr plays a crucial mediating role in the symbiotic relationship between community involvement and the development of ees. this research supports the assertion that a positive correlation exists among community involvement, forest restoration, and the cultivation of ees. according to the literature, fr facilitates the achievement of ees by acting as a mediator in its relationship with community engagement. understanding these interrelated dynamics is vital for formulating effective strategies for environmental conservation. testing hypotheses based on this mediation model could enable the development of more comprehensive, long-term strategies for forest management and ecological preservation. therefore, we propose the following hypotheses: h4a: fr mediates the relationship between sfn and ee. h4b: fr mediates the relationship between ce and ee. the relationships among social forest navigation, forest reclamation, community engagement, and ees are depicted in the graphic through solid arrows, illustrating their direct connections. specifically, sfn exerts a direct and significant influence on both fr and ees, as indicated by the orange arrows. similarly, ce directly affects both ees and forest reclamation, represented by the blue arrows. the green arrows illustrate the interdependence between fr and ees, highlighting their direct link. dashed arrows are employed to signify the indirect relationships that sfn and ce have with ees, with fr acting as a mediating factor. figure 1: study framework. agbioforum, 26(1), 2024 | 82 widada — the roles of social forest navigation and community engagement in achieving successful forest reclamation… thus, figure 1 provides a visual representation of the dynamic interactions among social forest navigation, community engagement, forest reclamation, and ees within the research framework. this visualization aids in elucidating the complex relationships among these elements. the use of color-coded solid and dashed arrows enhances clarity regarding the intricate web of connections proposed in the model. overall, figure 1 effectively illustrates the research framework, drawing upon insights from existing literature. it encapsulates the fundamental concepts derived from prior studies and serves as a visual guide for comprehending the intricate components of the proposed research model. by incorporating key elements from the literature, this diagram represents the connections, dependencies, and overall framework of the research, making it a valuable reference for researchers, practitioners, and stakeholders seeking a comprehensive understanding of the dynamics within the model. methodology research approach and design in this study, the development of ees serves as the dependent variable, and a quantitative approach is utilized to examine its relationships with sfn and ce. the study also explores the mediating role of fr in the relationships between the independent and dependent variables to provide a deeper understanding of these dynamics. notably, this observational study does not employ control or experimental groups. the independent variables ce and sfn reflect the levels of community involvement in fr efforts and the use of media platforms for social navigation. these variables were assessed using a quantitative instrument, specifically a questionnaire. the dependent variable, ees, measures the extent to which the communities have successfully empowered their ecosystems. additionally, fr is considered a mediating variable that helps clarify how reforestation activities enhance the effects of sfn and ce on the development of ees. by examining these relationships, the study aims to elucidate the intricate interplay among these variables and their collective impact on empowering ecosystems. population, sample, instruments, and measurement this rigorous methodology helped ensure that the data collected was representative, valid, and reliable, thus enabling precise insights to address the research questions (see table 1). the study examined the participation of local communities in fr projects in indonesia, specifically investigating the effects of sfn and ce on the development of ees. a random sampling technique was employed (olken & rotem, 1995) to ensure the inclusion of approximately 300 individuals. of the questionnaires distributed, 287 were returned; however, the analysis focused on responses from 271 participants. this dataset provided valuable insights into the complex dynamics being explored. a structured questionnaire was meticulously designed to assess factors related to community participation, indicators of successful reclamation, and the level of empowerment within the ecosystem. the research instrument underwent validation through content analysis by experts, ensuring its relevance and appropriateness. additionally, the reliability of the results was confirmed by retesting a subset of the sample. data-collection and -analysis procedures participant preferences determined whether surveys were administered face-to-face or online. to ensure both validity and reliability, data were collected using pretested questionnaires. this study adopted a systematic approach to data analysis by employing structural equation modelling (sem) in conjunction with the smart pls application. the conceptual model incorporated key variables, including sfn, ce, fr, and ecosystem empowerment. following data collection and preparation, the smart pls application calculated model estimation parameters, such as path coefficients, which elucidated the significance and strength of inter-variable relationships (chen et al., 2011). to assess statistical significance and model quality, we conducted goodnessof-fit evaluations and hypothesis testing. this analytical framework provided insights into the relative importance of each variable in explaining ecosystem empowerment and fr in indonesia. the research report presents and interprets the results of this analysis, contributing to the understanding of these complex dynamics. research ethics, reliability, and validity this study placed a strong emphasis on research ethics by securing approval from the relevant research ethics institution. ensuring the rights and safety of participants was paramount, and comprehensive information regarding informed consent was provided. the reliability of the research was further enhanced by consistently employing standardized instruments and utilizing a representative sample (martin & czellar, 2016). to ensure the overall validity of the study, strict controls were maintained over variables, and an experimental design was implemented to promote internal validity. this comprehensive approach underscores the commitment to conducting the research ethically, reliably, and robustly (pedhazur & schmelkin, 2013). the results of the cfa are presented in table 2 and were utilized to validate the theoretical constructs proposed in the research model. this validation process contributes to the credibility of the findings and supports the study's theoretical framework. sfn, ce, fr, and ee exhibit strong connections to their respective latent constructs, as evidenced by substantial outer loadings. the measurements of internal consistency specifically cronbach’s alpha, rho_a, composite reliability (cr), and average variance extracted (ave) all demonstrate high values, indicating that the measurement model is both reliable and possesses convergent validity. most notably, the results of the cfa reinforce the strength of the model's theoretical foundations, ensuring that the selected items accurately represent the latent constructs associated with community, forest, and empowerment themes. this validation confirms the robustness of the model in capturing the complexities of sfn, ce, forest reclamation, and ee agbioforum, 26(1): 57-68. © 2024 agbioforum widada — the roles of social forest navigation and community engagement in achieving successful forest reclamation… table 1: study instrument. variable items and indicator reference social forest navigation 1. sfn1: i actively engage in discussions, share information, and contribute to social platforms related to forest navigation. 2. sfn2: i frequently interact with social media content, discussions, or events related to social forest navigation. 3. sfn3: i actively seek information, updates, or resources regarding forest-related topics on social media. 4. sfn4: i participate and contribute within online communities or groups focused on forest-related discussions and activities. 5. sfn5: i expand my social network within the context of forest-related topics, thus showcasing the reach and influence of my engagement. 6. sfn6: i regularly share forest-related content, including articles, images, or experiences, thus demonstrating my involvement and commitment to social forest navigation. 7. sfn7: i receive feedback and reactions in response to my contributions, thus indicating the impact and influence of my social forest navigation activities. abrams et al. (2020) community engagement 1. ce1: i actively participate in community events and initiatives related to environmental conservation and forest reclamation. 2. ce2: i contribute my time and effort to community projects aimed at promoting sustainable practices and preserving natural ecosystems. 3. ce3: i collaborate with fellow community members to address environmental challenges and collectively work toward positive change. 4. ce4: i engage in discussions and decision-making processes within the community to support environmentally friendly policies and practices. 5. ce5: i volunteer for community-driven initiatives focused on raising awareness about the importance of forest conservation and ecosystem empowerment. 6. ce6: i foster a sense of community cohesion by encouraging fellow members to actively participate in environmental activities and projects. 7. ce7: i actively seek opportunities to involve community members in educational programs and workshops that promote sustainable living and forest protection. muhamad khair et al. (2020); surya et al. (2020) forest reclamation 1. fr1: i actively participate in forest reclamation projects, thus contributing to the restoration and rehabilitation of degraded forest areas. 2. fr2: i engage in the planting of native trees and vegetation as part of efforts to reclaim and revitalize deforested or damaged ecosystems. 3. fr3: i support and adhere to sustainable forestry practices, thus ensuring that reclamation activities prioritize the long-term health and resilience of the forest. 4. fr4: i collaborate with environmental organizations and local authorities to implement effective science-based strategies for forest reclamation. 5. fr5: i advocate for the responsible use of land and resources, thus promoting policies that prioritize the reclamation and protection of forests. 6. fr6: i actively involve local communities in forest-reclamation initiatives, thus fostering a sense of shared responsibility for environmental stewardship. 7. fr7: i monitor and assess the progress and impact of forestreclamation projects, thus adapting strategies to address emerging challenges and ensure long-term success. rawat et al. (2022); ukhurebor et al. (2022) empowered ecosystems 1. ee1: i actively contribute to the development of ecosystems that empower local communities and promote biodiversity. 2. ee2: i advocate for sustainable land-use practices that enhance the resilience and vitality of ecosystems within my community. 3. ee3: i engage in educational initiatives to raise awareness about the importance of ecosystem empowerment and the interconnectedness of all living organisms. 4. ee4: i actively participate in conservation efforts, thus working toward the restoration of ecosystems and the protection of endangered species. 5. ee5: i support policies and practices that prioritize the wellbeing of ecosystems, thus fostering a balance between human activities and the preservation of natural habitats. 6. ee6: i collaborate with environmental organizations and community groups to implement projects aimed at enhancing the overall health and functionality of ecosystems. 7. ee7: i strive to create a sense of environmental stewardship within my community, thus encouraging individuals to actively participate in activities that contribute to the empowerment of ecosystems. barrett et al. (2019); moeliono et al. (2023) agbioforum, 26(1), 2024 | 84 widada — the roles of social forest navigation and community engagement in achieving successful forest reclamation… table 2: confirmatory factor analysis. construct items outer loading cronbach’s alpha rho_a cr ave social forest navigation sfn1 0.932 0.979 0.979 0.982 0.886 sfn2 0.946 sfn3 0.947 sfn4 0.944 sfn5 0.936 sfn6 0.949 sfn7 0.934 community engagement ce1 0.875 0.974 0.977 0.978 0.865 ce2 0.942 ce3 0.946 ce4 0.921 ce5 0.961 ce6 0.912 ce7 0.951 forest reclamation fr1 0.883 0.967 0.969 0.972 0.834 fr2 0.923 fr3 0.947 fr4 0.920 fr5 0.923 fr6 0.896 fr7 0.899 empowered ecosystems ee1 0.926 0.954 0.957 0.963 0.789 ee2 0.890 ee3 0.942 ee4 0.888 ee5 0.727 ee6 0.920 ee7 0.908 source: primary data from research, 2024 findings descriptive statistics in the initial segment of the survey, participants were asked to provide key demographic information, specifically regarding gender, age range, and educational qualifications. this demographic data facilitated a comprehensive understanding of the participants' backgrounds, serving as a foundational basis for the detailed analysis of their perspectives and insights in the subsequent sections of the questionnaire (see table 3). the gender distribution among the participants revealed a slight disparity, with 58.30% identifying as male and 41.70% as female. in terms of age distribution, 33.58% of respondents fell within the 30–40 age range, while those under 30 comprised 28.41% of the sample. additionally, 19.56% were between the ages of 41 and 50, and 18.45% were over 50, indicating a relatively even distribution across the age groups. regarding educational qualifications, nearly half (49.08%) of participants held a bachelor's degree (s1), 35.79% had completed high school, and 14.39% had obtained a diploma (d3). only 0.74% of respondents had earned a master's degree or higher (s2). the perspectives of the respondents will be analysed in depth, building on the comprehensive demographic breakdown. given that gender, age, and educational level can potentially influence responses, it is crucial to consider these demographic factors in the analysis of the results. table 3: descriptive statistics. measurement latent construct/value f (%) gender male 158 58.30 female 113 41.70 271 100.00 age < 30 77 28.41 30 40 91 33.58 41 – 50 53 19.56 > 50 50 18.45 271 100.00 education high school 97 35.79 d3 39 14.39 s1 133 49.08 s2 2 0.74 271 100.00 total respondents 271 100.00 classic assumption test table 4 indicates that all variables exhibit significance levels greater than 0.05, allowing us to conclude that the data distribution is normal. subsequent analyses, as presented in tables 5 through 9, demonstrate linear relationships among the variables, table 5 confirms that the relationship between sfn and forest reclamation is linear. table 6 establishes a linear relationship between ce and fr. table 7 indicates a linear connection between sfn and empowered ecosystems. table 8 reaffirms the linear relationship between ce and ee. furthermore, table 9 reiterates the linear relationship of ce with ee, underscoring the consistency of this finding across multiple assessments. according to table 10, the variance inflation factor (vif) values for all variables are less than agbioforum, 26(1), 2024 | 85 widada — the roles of social forest navigation and community engagement in achieving successful forest reclamation… 10, and the tolerance (tol) values are greater than 0.1. this suggests that the multiple linear regression model does not suffer from multicollinearity, indicating that there are no strong correlations among the independent variables. thus, these variables can be confidently utilized in the research analysis. table 4: normality test: one-sample kolmogorov–smirnov test. soc_f_nav comm_nav forest_recl emp_eco n 271 271 271 271 normal parametersa,b mean 30.5018 29.6531 59.7528 29.8044 std. deviation 4.76397 4.73888 7.01491 4.37867 most extreme differences absolute .237 .238 .173 .222 positive .173 .156 .111 .118 negative -.237 -.238 -.173 -.222 kolmogorov-smirnov z 1.902 1.920 1.844 1.655 asymp. sig. (2-tailed) .540 .650 .521 .612 a. test distribution is normal. b. calculated from data. table 5: linearity test for sfn and fr. dependent variable: forest reclamation source type iii sum of squares df mean square f sig. corrected model 5686.780a 12 473.898 16.088 .000 intercept 143002.637 1 143002.637 4854.783 .000 soc_f_nav 5686.780 12 473.898 16.088 .000 error 7599.656 258 29.456 total 980863.000 271 corrected total 13286.435 270 a. r squared = .428 (adjusted r squared = .401) source: primer data analysis 2024 table 6: linearity test for ce and fr. dependent variable: forest reclamation source type iii sum of squares df mean square f sig. corrected model 10517.120a 19 553.533 50.170 .000 intercept 181266.943 1 181266.943 16429.334 .000 comm_nav 10517.120 19 553.533 50.170 .000 error 2769.315 251 11.033 total 980863.000 271 corrected total 13286.435 270 a. r squared = .792 (adjusted r squared = .776) source: primer data analysis 2024 table 7: linearity test for sfn and ee. source type iii sum of squares df mean square f sig. corrected model 10517.120a 19 553.533 50.170 .000 intercept 181266.943 1 181266.943 16429.334 .000 social forest engagement 10517.120 19 553.533 50.170 .000 error 2769.315 251 11.033 total 980863.000 271 corrected total 13286.435 270 a. r squared = .792 (adjusted r squared = .776) sources: primer data analysis 2024 table 8: linearity test for ce and ee. dependent variable: empowered ecosystems source type iii sum of squares df mean square f sig. corrected model 10517.120a 19 553.533 50.170 .000 intercept 181266.943 1 181266.943 16429.334 .000 comm_nav 10517.120 19 553.533 50.170 .000 error 2769.315 251 11.033 total 980863.000 271 corrected total 13286.435 270 a. r squared = .792 (adjusted r squared = .776) sources: primer data analysis 2024 table 9: linearity test for ce and ee. dependent variable: empowered ecosystems source type iii sum of squares df mean square f sig. corrected model 7790.142a 16 486.884 22.500 .000 intercept 203112.640 1 203112.640 9386.437 .000 community engagement 7790.142 16 486.884 22.500 .000 error 5496.293 254 21.639 total 980863.000 271 corrected total 13286.435 270 a. r squared = .586 (adjusted r squared = .560) sources: primer data analysis 2024 agbioforum, 26(1), 2024 | 86 widada — the roles of social forest navigation and community engagement in achieving successful forest reclamation… table 10: multicollinearity test results. model unstandardized coefficients standardized coefficients t sig. collinearity statistics b std. error beta tolerance vif 1 (constant) 62.431 3.012 11.321 .000 social forest navigation .031 .124 .007 .123 .832 .921 1.045 community engagement .035 .234 .015 .112 .321 1.012 1.034 forest reclamation .065 .211 .012 .223 .812 .932 1.012 empowered ecosystems .026 .121 .006 .232 .522 .943 1.011 a. dependent variable: internal factor sources: primer data analysis 2023 direct relationships table 11 indicates that each variable demonstrates significance levels greater than 0.05: specifically, sfn (x1) at 0.507, ce (x2) at 0.507, fr (y) at 0.500, and ee (z) at 0.713. this suggests that there are no issues with heteroscedasticity in the regression model. the path analysis results, as illustrated in table 4 and figure 2, provide valuable insights into the hypothetical relationships among sfn, ce, fr, and ee. for the first hypothesis, h1a (sfn to fr) and h1b (sfn to ee) yield positive and statistically significant path coefficients, with t statistics of 5.853 and 6.285, respectively, and p-values of 0.000 for both. this strongly supports the assertion that sfn significantly impacts both fr and ee. the positive coefficients imply that social navigation activities notably enhance the effectiveness of fr projects and contribute to the development of ee. for the second hypothesis, h2a (ce to fr) and h2b (ce to ee) also reveal positive and statistically significant path coefficients, with t statistics of 3.262 and 6.322, respectively, and p-values of 0.001 and 0.000. these findings reinforce the idea that ce is crucial for supporting fr and fostering ee. thus, active community involvement significantly enhances both fr efforts and ee. the third hypothesis, h3 (fr to ee), shows a positive and statistically significant path coefficient, with a t statistic of 4.697 and a p-value of 0.000. this finding underscores the substantial role that fr plays in the development of ee. in summary, the results of the path analysis support all hypothesized relationships among the constructs. empirical evidence confirms the positive effects of sfn, ce, and fr on the development of ee, as indicated by the positive and statistically significant path coefficients. these findings significantly contribute to the existing theoretical framework by affirming the interrelated nature of social and community factors and their influence on environmental outcomes in the context of community forest empowerment. table 11: heteroscedasticity test results. coefficients model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) 1.612 2.413 .812 .507 social forest navigation .027 .065 .034 .723 .507 community engagement .030 .062 .042 .611 .500 forest reclamation .079 .153 .035 .712 .421 empowered ecosystems .068 .112 .045 .670 .713 sources: primer data analysis 2024 table 12: path analysis. hypothesis construct* original sample stdev t statistic p-value result h1a sfn -> fr 0.399 0.068 5.853 0.000 supported h1b sfn -> ee 0.351 0.056 6.285 0.000 supported h2a ce -> fr 0.166 0.051 3.262 0.001 supported h2b ce -> ee 0.324 0.051 6.322 0.000 supported h3 fr -> ee 0.221 0.047 4.697 0.000 supported source: analysis of primer data 2024 indirect relationships the results of the mediation analysis, presented in table 5, elucidate the mediation effects within the hypothesized pathways, specifically regarding the influences of sfn and ce on ee through the intermediary role of fr. for hypothesis h4a (sfn through fr to ee), the path coefficient is 0.088, with a standard deviation of 0.024, a t statistic of 3.732, and a p-value of 0.000. these results strongly support the hypothesis that sfn exerts a significant indirect influence on ee via the mediation of fr. the positive coefficient suggests that individuals engaging in social navigation activities positively impact both the success of forest reclamation initiatives and the subsequent development of ee. in a similar vein, for hypothesis h4b (ce through fr to ee), the path coefficient is 0.037, with a standard deviation of 0.014, a t statistic of 2.584, and a pvalue of 0.010. this finding further substantiates the hypothesis that community engagement significantly influences ee indirectly through forest reclamation. specifically, the positive coefficient indicates that active ce enhances the success of fr efforts, thereby contributing to the empowerment of ecosystems. collectively, these results provide robust empirical evidence supporting the presence of mediating effects, highlighting forest reclamation as a critical intermediary process through which both social forest navigation and ce facilitate the development of ee. the statistically significant path coefficients and t statistics underscore the strength and significance of these mediation effects. this nuanced understanding of the mediated pathways enriches the theoretical framework by illuminating the intricate dynamics between social and community variables and their cascading impacts on agbioforum, 26(1), 2024 | 87 widada — the roles of social forest navigation and community engagement in achieving successful forest reclamation… environmental outcomes, particularly within the context of community forest empowerment. the findings underscore the importance of fostering both sfn and ce as means to enhance fr efforts, ultimately leading to more empowered and sustainable ecosystems figure 2: path analysis for the relationships among sfn, ce, ee, and fr. table 13: mediation results. hypothesis construct* original sample stdev t statistic p-value result h4a sfn -> fr -> ee 0.088 0.024 3.732 0.000 supported h4b ce -> fr -> ee 0.037 0.014 2.584 0.010 supported *) sfn=social forest navigation; ce=community engagement; fr=forest reclamation; ee=empowered ecosystems source: analysis of primer data 2024 discussion the results of this study affirm hypotheses h1a and h1b, highlighting the significant influence of sfn on both fr and ee. the findings indicate that individuals actively engaging on social media to share information and discuss forest conservation positively impact efforts to restore degraded forest areas and promote ee. this underscores the vital role of social involvement in fostering environmentally sustainable ecosystems (munandar, 2021). the implications of these findings are particularly relevant for the empowerment of community forests in indonesia. the confirmed relationships suggest that fostering sfn could act as a catalyst for community-driven initiatives that facilitate successful fr and the development of empowering ecosystems. this reliance on social factors emphasizes the need for comprehensive approaches that prioritize community involvement as a critical prerequisite for effective environmental preservation initiatives in indonesia. the study further supports hypotheses h2a and h2b, confirming that ce significantly affects both fr and ee. the active participation of individuals in community events and discussions about forest conservation is shown to greatly aid in recovering damaged forest areas. local communities can enhance ecosystem resilience by engaging in collaborative initiatives, thereby contributing to the establishment of environmentally sustainable ecosystems (kohsaka & rogel, 2021; muhamad khair et al., 2020). this highlights the importance of actively promoting ce as a pathway to successful reclamation efforts. engaging communities in these initiatives fosters ownership and accountability, crucial for restoring forests and developing ecosystems that empower local populations. thus, comprehensive strategies that incorporate community involvement are essential for promoting sustainable environmental conservation efforts in indonesia. support for hypothesis h3 indicates that fr significantly impacts the development of ee. effective fr initiatives are essential for enhancing ecosystem resilience and health, suggesting that revitalizing degraded forest areas is a foundational step toward empowering communities. as ecosystems are restored and forests replanted, communities gain access to sustainable resources, leading to improved quality of life and stronger foundations for sustainable development (rawat et al., 2022). this finding emphasizes the need for integrated forest management strategies that address both community empowerment and environmental conservation. the data also confirm hypotheses h4a and h4b, demonstrating that fr serves a critical mediating role in the relationship between sfn, community engagement, and ee. the positive effects of social navigation on ee manifest through successful fr. participants engaged in social navigation increase the likelihood of fr success, thereby agbioforum, 26(1), 2024 | 88 widada — the roles of social forest navigation and community engagement in achieving successful forest reclamation… strengthening the ecosystem. similarly, fr acts as a bridge between ce and ee, with community-led projects significantly contributing to forest restoration efforts. the acceptance of hypotheses h4a and h4b illustrates the interconnectedness of these variables in the context of community forest empowerment in indonesia. both social navigation and ce are vital for enhancing ecosystem resilience, while effective fr facilitates these positive outcomes. these findings highlight the importance of integrated strategies that emphasize community and socialdriven projects in fr, which are crucial for supporting both ecosystems and local communities. this comprehensive approach can ultimately foster sustainable environmental practices and community empowerment in indonesia. conclusion within the framework of community forest empowerment in indonesia, this research aimed to explore the intricate relationships among sfn, ce, fr, and ee. the findings confirmed all the hypotheses, illustrating the significant positive effects of sfn and ce on both fr and the development of ee. the results highlight the interdependence of these factors, emphasizing the necessity of implementing communityand social-driven programs to enhance effective forest restoration and empower ecosystems. specifically, successful fr emerged as a critical factor that directly contributes to healthier, more resilient ecosystems and improved community wellbeing. active participation in both social media and community initiatives should be central to community forest empowerment efforts. this engagement not only boosts fr but also fosters a sense of ownership and accountability among community members. recognizing fr as a mediator between social/ce and ee suggests that well-planned reclamation projects can yield broader ecological and community benefits. this underscores the importance of strategic planning in reclamation efforts to maximize their impact. the insights gained from this study provide valuable guidance for indonesian policymakers, environmental organizations, and community leaders involved in designing and implementing sustainable forest management strategies. incorporating these findings into policy frameworks can enhance the effectiveness of community empowerment initiatives. this study clarifies the complex interactions between social engagement, community involvement, fr, and ee, setting the stage for future research. further investigations could explore specific strategies for enhancing community participation and the long-term impacts of fr on ecosystem health and community resilience. overall, this research contributes to a deeper understanding of sustainable environmental conservation and community empowerment in indonesia's forests, paving the way for holistic strategies that integrate social, ecological, and community dimensions. theoretical, empirical, and social implications this study enhances our theoretical understanding by developing and validating a framework that integrates sfn, ce, fr, and ee within the context of community forest empowerment. the confirmation of all hypothesized relationships provides valuable insights into how social dynamics and community involvement influence environmental outcomes. this lays a foundation for advancing theories in environmental sociology, community empowerment, and sustainable ecosystem management. the findings hold significant utility for environmentalists, policymakers, and practitioners involved in community forestry. by elucidating the connections among sfn, ce, fr, and ee, the study guides the development and implementation of effective programs. it underscores the necessity of fostering social and community-based initiatives to ensure the success of fr efforts and the resulting development of resilient ecosystems. the social implications of this research are particularly relevant for community forest empowerment initiatives in indonesia. the study advocates for integrated and participatory approaches to environmental conservation, highlighting how social navigation and ce can positively impact fr and ecosystem empowerment. these efforts not only restore ecological balance but also empower local communities, fostering sustainable livelihoods, enhancing biodiversity, and improving overall quality of life. in summary, this research provides critical theoretical, empirical, and social insights into the complex relationships between community and social factors and their environmental consequences. the knowledge gained here has the potential to influence future scientific inquiries, inform policy development, and inspire community-driven initiatives aimed at harmonizing community empowerment with environmental sustainability, not just in indonesia, but in other regions facing similar challenges. limitations and recommendations for future research this study offers valuable insights, but several limitations may affect its generalizability to other contexts. the research was conducted exclusively in indonesia, meaning that findings may not be directly applicable to other countries or cultural settings. caution is warranted when extrapolating these results to different contexts. the study primarily utilized quantitative data, potentially overlooking qualitative dimensions that could enrich our understanding of ce in fr. self-reported measures can introduce biases in responses, affecting the reliability of the data. the reliance on crosssectional data limits the ability to establish causal relationships, making it difficult to discern the directionality of the observed effects. factors such as economic conditions, political climate, and unforeseen events were not considered in the research design, which could influence the dynamics of the relationships studied. to address these limitations and further enhance our understanding, future research could explore the avenues. conducting research across different cultures would enhance the external validity of the findings and provide a broader perspective on the relationships explored. employing qualitative methods, such as focus groups and interviews, could illuminate the motivations and experiences of community members participating in forestrelated activities. implementing longitudinal research designs would allow for the examination of causal relationships over time, providing deeper insights into how social engagement influences fr and ecosystem empowerment. investigating the impact of external factors, such as policy frameworks and socioeconomic conditions, would contribute to a more agbioforum, 26(1), 2024 | 89 widada — the 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https://doi.org/10.1007/s13132-023-01536-x agbioforum, 26(1): 62-69. © 2024 agbioforum ali et al formulation, characterization, and microbial studies of herbal remedy for asthma patients formulation, characterization, and microbial studies of herbal remedy for asthma patients waqas ali department of chemistry, university of engineering and technology, lahore, pakistan. arjumand iqbal durrani department of chemistry, university of engineering and technology, lahore, pakistan. email: arjumand@uet.edu.pk saima rubab department of pharmacognosy, lahore pharmacy college, lmdc lahore, pakistan. address: department of chemistry, university of engineering and technology, lahore, pakistan. email: saima.rubab@lmdc.edu.pk amjid iqbal* department of food sciences and human nutrition, college of agriculture and food, qassim university, po box 6622, buraidah, 51452, qassim, saudi arabia. email: a.mansha@qu.edu.sa asthma is a lung inflammatory disease present all over the world. environmental conditions and genetic factors play a critical role in the progress and management of this disease. in pakistan, the air pollution index increases rapidly especially smog intensify the severity of asthma. patients use corticosteroids to overcome asthma allergens that cause negative effects on the body. keeping in view the present investigation is based on herbal remedies i.e., herbal infusion tea, formulated from a natural source. these are made from herbs such as black seed, lemongrass, viola, ginger, and cardamom. the main bioactive compound in the herbal infusion tea was thymoquinone. there were three different formulations (f1, f2, and f3) made. chemical analysis, water activity, ph, detection of thymoquinone, microbiological studies, and sensory evaluation were performed. the bioactive compound was detected by a fourier transform infrared analyzer at 1636.05 and 2340.87 and microbiological studies show that after the infusion of tea in boiled water, all forms of microbes were removed and safe for drinking. f3 formulation was the best formulation selected based on the sensory evaluation that contains moisture 8.50%±0.32, ash 8.30%±0.82, cured fiber 26.35%±1.30, crude fat 8.20%±0.35, total solid 91.50%±0.82, water activity0.60±0.03 and ph 5.33±0.04. this study was conducted on 10 patients, 7 out of 10 given positive responses and feel batter in their health. herbal infusion teas are the most effective product for asthma patients and store a long period of time. herbal formulation has the ability to cope with asthma allergens and does not cause side effects on the body. keywords: asthmatic formulation, thymoquinone, fourier transform infrared, sensory evaluation, shelf life. introduction asthma is a chronic respiratory tract disease characterized by prolonged cough, shortness of breath, and wheezing (al-tufaily, hussein, & hussein, 2022). asthma affects 330 million people worldwide (szefler et al., 2014) and additionally 100 million are expected to have asthma by the year 2025 (sabar et al., 2018). air pollution has an adverse effect on human health. extremely small particles present in polluted air can travel into the human respiratory tract and penetrate deeply into the epithelial cell of the lungs and cause asthmatic symptoms. the degree of severity of asthma is determined by the amount of airflow limitation and speed with which the situation is reversed (ho et al., 2024). about 2 million deaths have been reported annually in the world so the who declared air pollution is a “silent killer” (who, 2018). environmental factors increase the severity of asthma (dakhama et al., 2009). allergens are environmental antigen has the ability to induce the production of specific ige antibodies. ige is a specific type of immunoglobulin (froidure et al., 2016). strongly associated with type -1 hypersensitivity reaction with its low level of plasma and short half-life. in addition to lateral phase response and activating immediate-hypersensitivity reaction, there is accumulating sign that performed ige can augment the cellular and humoral immune response to allergens (cockcroft et al., 2005). the main objective of asthma management is to resolve the symptoms caused by an asthmatic attack with minimum use of anti-asthmatic drugs to ensure less or no side effects of drugs. the management not only includes drug therapy but some other feature like adjustment of lifestyle, diet, and exercise also very necessary (kling & white, 2021). bronchodilators and corticosteroids are frequently used for the treatment of asthma. systematic corticosteroids play a vital role in the management of bronchospasm, but the medicines have a serious effect on the health of patients. hyperglycemia, cardiovascular disease, osteoporosis, cushing’s syndrome, neurological disorder, and immunological suppression are frequently reported during the prolonged use of the remedies (dahl, 2006; nguyen, hoang, & nguyen, 2022). fungal infection and harshness are the most common side effect reported in a patient who inhaled bronchodilators and corticosteroids (barnes, 2010). the advantages of herbal formulations over other chemical drugs and remedies are low risk of side effects, formula medicine cause side effects when they were used regularly. these are most effective for the treatment of diseases. the cost of this formulation is very low and easily available in the local market. these are accessible in large amount. simply some are cultivated in-house and used for treatment (punpromthada et al., 2022; rane et al., 2021). the research focuses on the extraction of the bioactive compound that interacts with ige to control asthma symptom. thymoquinone is a bioactive compound that could act as an antihistamine (ahmad et al., 2021). the compound is present in black seed also known as a nigella sativa seed belong to ranuculaceae family, which is a traditional herb and spice that are used to cure especially mailto:arjumand@uet.edu.pk mailto:saima.rubab@lmdc.edu.pk mailto:a.mansha@qu.edu.sa agbioforum, 26(1), 2024 | 63 aliet al formulation, characterization, and microbial studies of herbal remedy for asthma patients bronchial asthma. research showed that boiled extract of black seeds productively improved asthma-related messes in asthmatic patients. in a comparative report, fifteen patients suffering from asthma were given boiled extract which reveals to improvement in asthma symptom response (boskabady, mohsenpoor, & takaloo, 2010; jiang, 2024). there are various chemical constitutes such as thymoquinone (30%-48%), thymohydroquinone, pcymene dihymoquinone (7%-15%), carvacrol (6%-12%), sesquiterpene longifolene (1%-8%) 4-terpinol (2%-7%), tenthol (1%-4%) nigellimine-n-oxide, nigellicine and nigellidine. these compounds show many benefits on human health (sultana et al., 2015). lemongrass is present in the phytogenic substance and its scientific name is cymbopogon citratus (golo, mcapreko, & quarshie, 2023; ranade & thiagarajan, 2015). it is widely distributed worldwide and belongs to the poaceae family. it has been widely consumed due to medical, nutritional, cosmetic and gives a pleasant aroma and taste to food. there are many pharmacological properties present in lemongrass. the medicinal properties of lemongrass and its oil give many health benefits (alagawany et al., 2021). lemongrass leaf is traditionally used in kahva or infusion tea (toungos, 2019). it has many flavonoids and they act as an antiinflammatory compound (avoseh et al., 2015; jethwani & ramchandani, 2022). ginger belongs to the zingiberaceae family. its scientific name is zingiber officinale. worldwide use in beverage and dietary condiments in food (ujang, nordin, & subramaniam, 2015). ginger is a nutritional plant and is effectively used in medicine. ginger has some general compounds such as fe, mg, ca, vitamin c, phenolic compounds (gingerdiol, gingerol, gingerdione, and shogaols) flavonoids, sesquiterpenes, parasols which were used in herbal medicine (shahrajabian, sun, & cheng, 2019). scientific studies showed that ginger helps to reduce inflammation and pain (singletary, 2010). cardamom belongs to the zingiberaceae family and its scientific name is elettaria cardamomum l (jesylne et al., 2016). it has been used in many medicines, due to various medicinal properties. cardamom is effective for the treatment of asthma and relaxes the airway (habash, sultan, & ghareeb, 2022; qiblawi et al., 2020). phytochemical investigations have depicted significant synthetic constituents of cardamom including carbs, proteins, minerals, lipids, fundamental oils, flavonoids, terpenoids, and carotenoids. some major advantages in health including cancer prevention agent, antidiabetic, antibacterial, anticancer, gastro-defensive, and insecticidal exercises (ashokkumar et al., 2020). viola belongs to the violaceae family. its scientific name is viola botonicifolia and locally known as banafshe, it is widely distributed throughout the world including pakistan. the plant leaves and fruits have traditionally been used for the treatment of bronchial asthma, bronchitis, and cough (janbaz et al., 2015; misra et al., 2022). the anti-inflammatory properties were checked by using an aqueous extract of viola adorate and compare with hydrocortisone in the rat by induction of lung injury by formalin through nebulization. these are very effective parts in avoiding lung damage and they could be used as an alternative corticosteroid to the management of the inflammatory condition of the lungs (bashir et al., 2021; llamazares, 2023). there are many medicines in market but not any herbal related to cope the asthma. our product is proved beneficial in these days when smog severity is high. it’s easily accessible in local market on cheap rate. the main purpose of this research is to develope a herbal formulation for asthmatic patients as per our best knowledge no other studies have been investigated before. materials and methods collection of raw material the selected herbs were the following: black seed, lemongrass, viola, ginger, and cardamom. these herbs were collected from the local market. lemon grass has been taken from the national tea and high-value crop research institute shinkiari mansehra. other herbs like the black seed, viola, ginger, and cardamom were purchased from the local market in lahore. the collected herbs were preserved in air-tight polythene bags. tea bags were bought from the local market. raw materials analysis before the formulation, chemical analysis was performed such as moisture, crude fat, crude fiber, total solid, ash, etc. the representative sample taken from each ingredient such as leaves and seeds has been ground into powder form before analysis. the analysis was performed by using standard techniques provided by aoc (nielsen, 2010). moisture and total solid content were determined by drying the sample at 100°c in a hot air oven up to constant weight (younas et al., 2021). ash content was determined by igniting the sample at 525°c in the furnace up to constant weight (mafu et al., 2022). crud fat was determined by diethyl either extract in soxhlet apparatus at 40-60°c then evaporate the solvent from the sample (azevedo et al., 2022). crud fiber was determined in the defatted sample by 0.125n sulfuric acid and 0.313n sodium hydroxide digestion. after digestion, the ash content was determined for crude fiber (salarzadeh et al., 2012). formulation of infusion tea herbal infusion tea was made into three formulations. these were given the names f1, f2, and f3. in these formulations, some ingredients were kept constant, and some were variable for test perception. constant ingredients are black seed, ginger, and cardamom and variable ingredients are lemongrass and viola. formulation analysis chemical analysis was performed for each analysis. these are the following analysis performed moisture, crude fat, crude fiber, total solid, ash, and ph. these were analyzed according to the stander method of aoac (nielsen, 2010). water activity a representative sample was analyzed in the water activity meter. the weight samples were kept in the water activity agbioforum, 26(1), 2024 | 64 aliet al formulation, characterization, and microbial studies of herbal remedy for asthma patients analyzer at 25°c and note the reading (sarkar et al., 2022). ph analysis ph meter (seven compact s-220) was used to determine the ph of a formulation (ijaz et al., 2022). microbiological analysis 2g of sample were taken in the conical flask containing 200ml 0.1% ringer solution and kept at room temperature for 1 hour. 10-fold serial dilution was prepared. similarly, one of the samples were taken into boiling water and allowed to boil for 5 minutes on the hot plate. the beaker was removed from the hot plate and kept for 30 minutes at room temperature under aseptic conditions. 10folds serial dilution was prepared (etim, simonyan, & eke, 2022). for total plate count 1ml sample was taken from 10-serial diluted sample and inoculated into the nutrient media plate by spreading method. the sample was put into the incubator at 37°c for 48 hours. the colony was counted by colony meter (hoque, 2013). for yeast and mold 1ml sample was taken from 10-serial diluted sample and inoculated into potatoes dextrose agar media plate by spreading method and incubator at 37°c for 78 hours (greppi et al., 2013). for coliform 1ml sample was poured into the plate. then violent red ager media was poured into the sample. the media containing the sample was kept for cooling and solidification. then the plate was incubated at 37°c for 24 hours. the colony was counted in colony meters (le et al., 2022). sensory evaluation to determine the best formulation of infusion tea. sensorial evaluations of f1, f2, and f3 were carried out by samitrained panelists. all samples with different compositions of herbs were presented to the sami-trained panelist and noted the feedback. a simple hedonic scale was used, which consist of five attributes such as color, aroma taste, flavor, and overall acceptance (wang et al., 2022). ftir analysis the tea bag was put into 200ml distilled water at 100°c and stirred for 5-8 minutes. a drop of the extracted sample was added to the surface of the kbr pellet on ftir analyzer. ftir spectrum of the infusion tea in kbr pellets (v max in cm-1) on an ftir spectrum of bruker ftir spectrometer in the wave range of 600-4000cm-1 with the resolution of 2cm-1 (mohamed shameer & mohamed nishath, 2019). in-vivo studies select 10 people of the same age and same group. they would be given him for 15 days regularly and then the feedback has been taken from the patient and asked the following question regarding her health (wu & wei, 2009). shelf-life the product was kept in a humid chamber, the humidity was set at 65-75% and the temperature was kept at 40-45°c. one of the products was kept at room temperature. after 3 months, the sensory evaluation was performed compare both formulations that are kept at room temperature and humid chamber by the sensory panelist (steele, 2004). results and discussion table 1 shown the raw material analysis in which, lemongrass was the main ingredient used in herbal infusion tea. the moisture content was 7.67%. lemongrass has been taken in dried form. moisture content was changed due to various factors such as the dried and storage condition of lemongrass. moisture contents were effect by other values such as ash, total solid, curd fat, crude fiber, and water activity. the percentage value was increased and decreased due to a change in moisture content (unuigbe et al., 2019).black seeds were analyzed by stander method. all these results obtained by the analysis of black seed were accurate and within the range of stander results. the results were obtained such as moisture content 5.11%, ash 15.33%, total solid 89.33%, curd fat 32.82% crude fiber 16.43%, and water activity 0.577 (odebunmi, oluwaniyi, & bashiru, 2010). viola has great pharmaceutical potential. the stander method was used and results were obtained such as moisture content 10.67%, ash 11.0%, total solid 89.33%, curd fat 4.23% and crude fiber 30.10%, and water activity 0.60. the moisture content was changed due to various factors such as storage and dried condition of viola leaves (barkah et al., 2021). in the present study, cardamom was analyzed. the following results were obtained such as moisture content 13.33%, ash 8.67%, total solid 86.7%, curd fat 3.22%, crud fiber23.00%, and water activity 0.56. all the values obtained are compositionally different. the compositional variation in cardamom samples concerning physicochemical composition depends on varietal differences, agronomic practice, and climate conditions. moreover, the stage of production and maturity is also an important factor that affects its physicochemical composition parameter (muhammad et al., 2012). ginger was dried in a hot air oven and made the powder. the proximate value was obtained such as moisture content 9.67%, ash 5.67%, total solid 90.33%, curd fat 4.3%, crude fiber 5.63%, and water activity 0.56. crude fat and water composition were changed due to various factors such drying method of ginger and the storage condition of ginger (kumari & gupta, 2016). table 1: chemical analysis of raw materials. no herbs moisture (%) total solid (%) ash (%) crude fat (%) crude fiber (%) 1 lemon grass 7.67±0.58 92.33±0.58 8.67±0.58 4.17±0.29 39.80±3.00 2 black seed 5.11±0.50 94.89±0.26 15.33±0.58 32.82±0.68 16.43±0.52 3 viola 10.67 ±058 89.33±0.58 11.0 ±0.01 4.23 ±0.23 30.10±1.31 4 ginger 9.67 ±1.15 90.33±1.15 5.67 ±0.58 4.30 ±0.33 5.63±0.15 5 cardamom 13.33±1.15 86.7 ±1.15 8.67 ±0.58 3.22 ±0.12 23.00±1.10 chemical analysis was shown in table 2. the minimum activity of food-born pathogen growth is from 0.83 to 0.86 agbioforum, 26(1), 2024 | 65 aliet al formulation, characterization, and microbial studies of herbal remedy for asthma patients (troller, 2017). the product is placed in less than this range which is in a safe zone. if the water activity is more than 1 the product is prone to survive the microbes. the microbial activity depends upon the water activity of the product. all these formulations have less than 0.83 water activity. it means that all of them were in the safe zone. ph was shown in table-2. ph was the main important part of any formulation which played an important role in the stability and taste of any food material. formulation no 3 has a ph of 5.3. it is a miner difference in ph among all the formulations. all the ingredients used in the formulation in which had the ability to antimicrobial and some antioxidant activity. each formulation was shown different results. the formulation that was made before boiling water contains few microbial contaminations in total plate count and coliform that are given in table-3 these are below o stander of microbial load. the following table shows the result of different formulation microbial activities. all the microbes were killed at high temperatures. table 3 showed the result of microbiological quality. in all formulations, there was no sign of microbes, when a person consumed. it clearly showed that there was no microbial contamination of the product. one of the other reasons for a low rate of microbiological was that the moisture content of every formulation is less than 10% approximately between 7% 8.5%. and the water activity of each formulation was less than 0.80 (untermann, 1998). formulation no 3 was selected best one, according to figure 1, the overall acceptance of the product was given by formulation no3, and all others were not meet the corner of the defined scale. people were given positive feedback by used of herbal infusion tea because they were well known about the side effect of herbal formulation as compared to corticosteroid. the spectrum was obtained from the ftir analyzer shown in figure 2. obtain peaks were compared with stander peaks. in this spectrum, c =c stretching strong at 1636.05 indicate alkene, n=n=n stretching strong at 2130.95 indicate azide, o=c=o stretching strong at 2340.87 presence of carbon dioxide , and at 2340.87 n-h shows medium stretching representing secondary amine (mohammed et al., 2019). table 2: comparison of chemical analysis of different formulations. no formulation moisture (%) ash (%) total solid (%) crude fat (%) crude fiber (%) water activity ph 1 formulation 1 8.55±0.05 8.35±0.05 91.45±0.05 6.15±0.05 28.80±0.10 0.6149±0.03 5.24±0.03 2 formulation 2 7.90±0.05 8.00±0.68 92.10±0.05 6.90±0.40 24.10±0.12 0.6170±0.04 5.23±0.04 3 formulation 3 8.50±0.32 8.30±0.82 91.50±0.82 8.20±0.35 26.35±1.30 0.6082±0.03 5.33±0.03 figure 1: comparison of f1, f2 and f3. figure 2: spectrum obtain from ftir. agbioforum, 26(1), 2024 | 66 aliet al formulation, characterization, and microbial studies of herbal remedy for asthma patients table 3: microbiological content before boiling and after boling water. no. formulations total plate(cfu) coliform(cfu) yeast (cfu) mold(cfu) before after before after before after before after 1 formulation 1 -ve -ve -ve -ve -ve -ve -ve -ve 2 formulation 2 -ve -ve -ve -ve -ve -ve -ve -ve 3 formulation 3 +ve (2cfu) -ve +ve (2cfu) -ve -ve -ve -ve -ve herbal infusion tea has been taken for 15 days regularly. after 15 days, they gave feedback about the infusion tea. out of 10, 7 were given positive responses and, 3 were not given any response about the improvement of asthmatic health. figure 3 showed the patient remarks. figure 3: patients was given feedback about herbal infusion tea to improve their asthmatic health. after the 3-month sensory evaluation has been done. this shows that there was not any difference found in taste, aroma, and flavor. during the study period, the product shelf-life assign 3-month but based on its composition it should be kept at 1 year or more because it has a low moisture content, water activity, and ph. under specific temperatures and good packaging prolong the shelf life of infusion tea. the comparison of these were shown in figure 4. figure 4: comparison chart in the humid chamber and at room temperature. conclusion air pollution and smog increase day by day in pakistan which cause an adverse effect on the asthmatic patient. the use of corticosteroids causes a negative effect on the body. the herbal infusion tea is the best remedy for an asthmatic patient because it contains many different bioactive compounds. thymoquinone is a bioactive compound found in black seed and is effective for asthma patients. three formulations were made f1, f2, and f3. comparing all the formulations, f3 was selected as the best one. it contains the potential to reduce asthma with good sensory attributes. references ahmad, m. f., ahmad, f. a., ashraf, s. a., saad, h. h., wahab, s., khan, m. i., et al. 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agbioforum, 26(1): 18-23. © 2024 agbioforum wu et al. antibacterial activity study of liubao chongcha extract antibacterial activity study of liubao chongcha extract juxian wu school of industrial technology, universiti sains malaysia, 11800 minden, penang, malaysia, guangdong vocational college of science and trade, no. 36 zhongsu road, qingyuan, guangdong province, china. joo shun tan* school of industrial technology, universiti sains malaysia, 11800 minden, penang, malaysia. email: jooshun@usm.my ruyi wang guangdong food and drug vocational college, china huiqing liu guangdong vocational college of science and trade, no. 36 zhongsu road, qingyuan, guangdong province, china jieqiong yan guangdong medical university, china jiale tan guangdong medical university, china chongchai is a popular beverage in china, enjoyed by people all over the country. recent studies indicate that chongcha has a refreshing impact on the body and offers numerous advantages for one's well-being. this study sought to conduct a preliminary investigation into the antibacterial properties of liubao chongcha and liubao tea aqueous extract. the goal was to assess their effectiveness against common pathogenic bacteria by determining the minimum bactericidal concentration and the minimum inhibitory concentration. the test microorganisms utilised in the study included staphylococcus aureus, bacillus subtilis, escherichia coli, and pseudomonas aeruginosa. the kirby-bauer disc diffusion method was used to confirm the inhibitory effect of water extracts from chongcha and liubao black tea on the studied strains. the mueller-hinton broth dilution method was used to determine the minimum inhibitory concentration and minimum bactericidal concentration of the liubao chongcha and liubao tea aqueous extracts against s. aureus. the aqueous extracts of liubao chongcha and liubao tea demonstrated significant inhibitory effects against s. aureus, moderate inhibitory effects against e. coli and p. aeruginosa, and minimal inhibitory effects against b. subtilis. the chongcha aqueous extract exhibited a minimum bactericidal concentration (mbc) and minimum inhibitory concentration (mic) of 0.625 mg/ml against s. aureus. similarly, liubao black tea water extract had an mbc and mic of 1.25 mg/ml. the water extracts from chongcha and liubao black tea exhibited potent antibacterial activity against gram-positive bacteria, while showing limited or no inhibitory effects on gram-negative bacteria. keywords: antibacterial activity, chongcha, extract, liubao, minimum bactericidal concentration, minimum inhibitory concentration. introduction contagious diseases pose a significant threat to both human and animal health, leading to illness and death. the discovery of antibiotics is considered a powerful tool in supporting medical treatment for bacterial infections and their associated risks and complications. unfortunately, the extensive misuse of antibiotics contributes to the dissemination of antibiotic-resistant bacteria among the population. therefore, it has a significant impact on the global community (zhang et al., 2020). antibiotics have been shown to effectively treat bacterial diseases when accurately diagnosed by medical practitioners. previous studies have examined the management of infectious diseases. nevertheless, the use of antibiotics frequently leads to the emergence of resistant strains, which poses a threat to their effectiveness. antimicrobial resistance occurs when bacteria or fungi develop the ability to reduce the effectiveness of drugs designed to kill them. the treatment of resistant infections is often challenging and can sometimes become impossible. the literature emphasises the need for alternative strategies to combat antibiotic resistance, as selfmedication practices have contributed to its increasing rate. scholars are actively searching for alternative approaches to address this issue. the endangerment of human, environmental, and animal health makes it a global concern. the food & agriculture organisation of the united nations (fao) states that antimicrobial resistance is a significant one health concern, resulting from the inappropriate use of antimicrobials in both healthcare and animal production. exploring fractions with potential antibacterial activity from insects may serve as an alternative to overcome antibacterial resistance (xu et al., 2013). tea is a widely consumed beverage known for its physiological effects on obesity, hypoglycemia, atherosclerosis, carcinogenicity, and antibacterial and antioxidant activities. globally, more than 300 distinct commercial teas are consumed due to their widespread popularity. teas are classified into different categories based on their manufacturing process, including nonfermented, semi-fermented, fully-fermented, and postfermented. catechins are recognised as the primary active components responsible for the biological activities of tea. the presence of various forms and derivatives in the drink enables it to exhibit diverse biological activities. tea leaves undergo either steaming or panning processes, which prevent the oxidation of catechin. this preservation of polyphenols, such as epicatechol and epigallocatechin, occurs especially in green tea. in contrast, black tea undergoes grinding, wilting, and full-level fermentation. enzymatic oxidation allows for the transformation of catechin derivatives into theaflavins and thearubigins. humans utilise insects and their products for various purposes. insect-related products are utilised in the diets of humans, farm animals, and occasionally other insects. these products are also used in various forms to treat disease development, particularly in traditional medicine. china has accumulated extensive knowledge on tea cultivation, manufacturing, and consumption over a long period of time. china has developed a distinct tea culture. mailto:jooshun@usm.my agbioforum, 26(1), 2024 | 19 wu et al. antibacterial activity study of liubao chongcha extract the culture of the tang dynasty quickly evolved and subsequently deeply influenced chinese society. the origin of tea is incredibly varied, influenced by a wide range of cultural, ecological, and ethnic factors. it is worth noting that there is an intriguing variation in ancient literature when it comes to tea. in the "odes," tea is described as a sweet-tasting plant, whereas in the eyra, it is referred to as bitter-tasting. when making tea beverages in different chinese regions, a variety of herbs are taken into consideration. these herbs include vine, hawk, and bitter tea, among others. these types of herbs, also known as non-camellia varieties, are a unique sub-culture within the world of tea. one popular tea variety in chinese culture is insect tea, known for its natural contribution to the vibrant tea tradition. insect tea is a traditional drink enjoyed by the ethnic minority communities in the southwest region of china. this product has a rich history and is well-known in china. according to li shizhen, this particular tea is made from the waste of insects that feed on plants. surprisingly, it has been found to have medicinal properties and can be used to treat various ailments, such as ear infections. from a scholarly standpoint, insect tea is not your typical beverage due to its origin from insect waste. it stands out due to its consumption method and its vibrant colour. steeping a small amount of tea leaves can yield a cup of tea that is free from any residue. the resulting yellow-red mixture boasts superior and more charming flavours compared to other types of teas. the term "boutique tea" is often used as another name for it. researchers conducted a study, collecting data from individuals who have consumed insect tea, and found that this beverage provides various health benefits. the benefits of these include thermoregulation, humidity reduction, detoxification, gastrointestinal protection, and digestive support. qi, a specialised terminology in traditional chinese medicine, highlights the significance of vital energy in alleviating surface-level symptoms. this approach offers advantages in the field. studies have demonstrated the benefits of this tea for individuals working in hot environments, especially in tropical regions. insect tea, a traditional export of china, is renowned for its exceptional qualities. the substance possesses a minimal dosage, notable transparency, and a potent fragrance. insect tea is highly esteemed in southeast asia, particularly in countries such as nansha, singapore, and malaysia, where it is referred to as a tea treasure. chongcha, a traditional chinese medicinal tea, was initially recorded by li shizhen in his "compendium of materia medica"(elman, 2015). the tea was reported to be infested with insects, and the excrement of these insects was used medicinally. the excrement and remains were utilised for the treatment of ear discharge (xu et al., 2013). chongcha contains a variety of active constituents, including amino acids, polyphenols, and flavonoids. the production of this product is concentrated in the border regions of hunan, guangxi, guizhou, guangdong, and certain areas along the upper yangtze river in sichuan (ya-feng & li-zhang, 2019). the traditional beverage is popular among ethnic minorities such as the miao, yi, tujia, and gelao peoples. chongcha is often associated with various effects in folk tradition, including heat clearance, detoxification, anti-inflammatory properties, enhancement of spleen and stomach function, digestion aid, diuresis, and reduction of phlegm (wang et al., 2023). underserved areas with limited access to medical facilities use chongcha as a traditional medicine. people commonly use it to treat a variety of ailments, including wounds, abscesses, and paediatric onvulsions (yuan et al., 2021) the local gazetteer "chengbu culture and history" (1989) suggests that consuming chongcha offers a refreshing taste and various medicinal benefits. these include thirstquenching, mental refreshment, blood pressure reduction, digestion promotion, treatment of stomach diseases, diuresis, qi regulation, phlegm reduction, detoxification, and swelling reduction (gao et al., 2018). due to its origins in ethnic minority regions in china, there has been limited international research conducted on chongcha. chongcha in china has a rich history that can be traced back to 992 ad. prior to li shizhen's time, there were historical accounts of utilising chongcha to address specific ailments (elman, 2015). the usage of chongcha has been documented for more than a thousand years. research on the medicinal value and food safety of chongcha has been on the rise in china since the 1990s (fu et al., 2018b). liubao tea is a type of dark tea made from the fresh leaves of specific tea tree varieties and cultivars in cangwu county, guangxi (feng et al., 2023). it undergoes specific techniques to attain its distinct quality characteristics (zhu et al., 2020). various types of tea, such as green, black, yellow, oolong, dark, and white, are available to individuals for further discussion. liubao tea is a traditional example of dark tea, similar to popular teas like pureh and fuzhuan. liubao tea, a renowned cultural product of china, is produced in china. in 2021, the production of liubao tea in wuzhou reached 25,000 tonnes, generating an output value of 11 billion rmb. the liubao tea produced in wuzhou has been recognised as one of the most prominent brands in china in 2021. the tea is made from camellia sinensis and brewed with a water content of 15 to 18% at temperatures ranging from 40 to 55 °c for a period of 20 to 30 days. the distinct flavour of tea is formed through fermentation, which occurs when moisture and heat interact in the presence of microorganisms like mould and staph. the fermentative process decreases the levels of polymeric polyphenols, total phenolic compounds, and flavonoids, while increasing the levels of oxidised polyphenols and saccharides. the alteration of a component in liubao tea results in the development of a unique and distinctive colour, along with a subtle flavour that also imparts a wood-like taste. the outer wall of tea undergoes degradation by microorganisms during fermentation. liubao tea is primarily made using wuzhou tea leaves from china. the tea production process involves natural fermentation, pile fermentation, parching, sterilising, and maturing. thus, wang et al. (2023) identified a specific black tea that undergoes post-fermentation. the tea is named after its geographical location, liubao, in wuzhou city, guangxi province, china. tea has historically been used for preventive care. pu'er and fuzhuan tea, as well as agbioforum, 26(1), 2024 | 20 wu et al. antibacterial activity study of liubao chongcha extract hunan black tea, have been the primary focus of most studies. however, there is a lack of research specifically related to liubao tea. recent literature suggests that liubao tea has been found to have potential benefits in reducing cholesterol levels, regulating glucose and fat metabolism, promoting antioxidant activity, modulating immunity, and influencing the microbiota. the health benefits of liubao tea are attributed to its content of polyphenols, soluble carbohydrates, caffeine, flavonoids, and nonproteinogenic amino acids. the liubao insect tea, also known as chongcha tea, is produced in guangxi, china and is marketed as a medicinal or health tea. this tea is made from tea leaves that have been consumed and excreted by insects. the excreted droppings originate from various insect species, including orthopygia glaucinalis, hydrillodes, simplicia niphona butler, tea tabby, and leech. the insects feed on red clover and other plants, which is important for tea production. the collected products were processed to produce insect tea. insect tea is a mineral-rich beverage that contains 17 minerals and 10 trace elements, including potassium, calcium, sodium, iron, zinc, and magnesium. these minerals and trace elements are essential for the human body. some argue that insect tea contains higher levels of iron, zinc, calcium, and magnesium compared to other types of tea. insect tea contains protein, fibre, fat content, polyphenols, vitamins, and amino acids. the tea, known as a traditional chinese beverage, has been documented to have detoxifying properties and the ability to flush toxins from the body in clinical therapy. therefore, enhancing the digestion process to strengthen the stomach. favourable outcomes have been observed when using this tea to treat diarrhoea, nosebleeds, rectal bleeding, and gum bleeding. the manufacturing process of insect tea is unique as it involves providing insect larvae with primary leaves, and then processing the larval droppings to create the final drink. furthermore, the type of insect and the species of material leaves are important factors that influence the quality and function of the insect. several types of teas exist, such as kuding tea, toringo tea, and liubao tea, which is also known as camellia sinensis. several studies have shown that polyphenols found in insect tea have gastric injury prevention properties and also possess potential benefits in preventing cancer, reducing blood sugar levels and blood pressure, and decreasing body fat. tea has the potential to regulate the microenvironment and calcium levels of the digestive system due to its anti-viral and anti-bacterial properties. therefore, it effectively modulates the body's immune response while reducing inflammation. tea, as an old-fashioned remedy, has a traditional role in managing inflammation and avoiding the need for surgery. the implementation of geographical indication protection for "liubao tea" was approved by the former general administration of quality supervision, inspection and quarantine of china on march 16, 2011 (hao et al., 2013). although different types of chongcha have been investigated within the country, there is currently no documented research on the antibacterial properties of liubao chongcha. the current study utilised in vitro antibacterial tests, specifically the kirby-bauer (kb) disc diffusion method and the mueller-hinton broth dilution method, to examine the inhibitory effects of the substance on intestinal microorganisms, namely s. aureus, e. coli, p. aeruginosa, and b. subtilis. materials and method the current study assessed the inhibitory effect of liubao chongcha extract on specific microorganisms including s. aureus, e.coli, p.aeruginosa, and b. subtilis. the test strains were obtained from guangdong food and drug vocational college in guangdong province, china. liubao chongcha, a type of liubao tea, was purchased from wuzhou chuanxiang tea co., ltd. k-b disk diffusion method the liubao chongcha extract was prepared by adding 100 g of liubao chongcha to 2 l of boiling water. the mixture was steeped for 12 hours at room temperature, with multiple extractions. the extract underwent filtration, and the resulting filtrate was collected and concentrated to a thick consistency using a rotary evaporator. the concentrated extract was dried using a water bath, freezedried, and dissolved in purified water to create solutions of varying concentrations. the sterile paper discs were immersed in these solutions for 1.5 hours and then dried at 55 °c under sterile conditions (fu et al., 2018a). a bacterial suspension was prepared by adjusting the concentration of a selected bacterial strain to approximately 108~109 cfu/ml. approximately 100 μl of bacterial suspension was transferred onto the plate containing casein hydrolysate agar medium for bacteria and evenly distributed. the antibiotic discs for sample and control were placed on the slightly dried inoculated plate. the negative control in this experiment was a water disc, while the positive control was a gentamicin antibiotic disc used to target bacteria. the plates were incubated at 37℃ and 28℃ for 18 hours after a 15-minute period.the diameter of the inhibition zones was measured using a vernier calliper, specifically employing the cross-sectional method. the experiment was conducted in triplicate (fu et al., 2018a). mueller-hinton (mh) broth dilution method the mueller-hinton (mh) broth dilution method was used to evaluate the minimum inhibitory concentration (mic) and minimum bactericidal concentration (mbc) of chongchawater (lei & lu, 2001).the sample solution was prepared by weighing 1 g of dry chongcha extract and adjusting its concentration to 100 mg/ml with the addition of water. a 1ml aliquot of the sample solution was diluted in casein hydrolysate broth to achieve a concentration of 10 mg/ml. a 96-well bacterial cell culture plate was used to add 100 μl of mh broth to the second to the tenth well. approximately 100 μl of the sample solution was added to the first and second wells. the solution was mixed in the second well, and then 100 μl was transferred to the third well. the process was iterated until the tenth well, with 100 μl from the tenth well being excluded. this resulted in sample concentrations of 10, 5, 2.5, 1.25, 0.625, 0.313, 0.156, 0.078, 0.039, and 0.0195 mg/ml in each well. control groups were established agbioforum, 26(1), 2024 | 21 wu et al. antibacterial activity study of liubao chongcha extract for both broth without bacterial solution and test bacterial growth without antibacterial agent. the s.aureus bacterial suspension was diluted with 0.9% saline to a concentration of 108~109 cfu/ml. one millilitre of the suspension was transferred into a 100 ml volumetric flask and then filled to volume with casein hydrolysate broth. each well was filled with 100 μl of bacterial suspension, resulting in final sample concentrations ranging from 5 to 0.00975 mg/ml. the 96-well bacterial cell culture plate was incubated at 37 ℃ for 24 hours to cultivate s. aureus. the minimum inhibitory concentration (mic) was determined as the lowest concentration at which bacterial growth was not observed in the wells. the incubation period was extended by 12 hours in order to determine the minimum bactericidal concentration (mbc). the experiment was conducted three times (lei et al., 2001). statistical analysis the results were expressed as mean ± standard deviation (x±s). data analysis was conducted using spss 19.0 statistical software. variance analysis, t-tests, and the lsd method were employed to analyse the experimental results. the significance level was set at α=0.05, with a pvalue<0.05 indicating statistical significance. results the antibacterial spectrum of chongcha was assessed against common pathogens using the k-b disc diffusion method. the liubao chongcha and liubao black tea extracts (aqueous) exhibited varying degrees of inhibitory effects against the tested strains. the diameter of the inhibition zone caused by liubao chongcha and liubao black tea water extracts against s. aureus were 19.07 mm and 16.06 mm, respectively. liubao chongcha exhibited superior antibacterial activity compared to liubo black tea, particularly against the gram-positive bacterium s. aureus. both teas showed weaker inhibition against gramnegative bacteria, including p. aeruginosa and e. coli. no inhibition zone was observed against b. subtilis, suggesting that neither tea extract was sensitive to this bacterium. the antibacterial spectrum of liubao chong includes s. aureus, e. coli, and p. aeruginosa (table 1&2). table 1: antibacterial activity of liubao chongchawater extract. extract type chongcha gentamicin water concentration (g/100 ml) 5.00 10.00 15.00 inhibition zone diameter (mm) s.aureus 11.07±0.46 14.34±0.49 15.62±0.65 p.aeruginosa 6±0 7.11±0.04 7.83±0.56 e.coli 6±0 7±0.22 7.88±0.22 b.subtilis 6±0 6±0 6±0 table 2: antibacterial activity of liubao black tea water extract. extract type liubao black tea gentamicin water concentration (g/100 ml) 5.00 10.00 15.00 inhibition zone diameter (mm) s.aureus 9.77±0.96 12.5±0.39 14.22±0.68 p.aeruginosa 6±0 6±0 7.27±0.32 e.coli 7.74±0.06 7.78±0.45 8.1±0.14 b.subtilis 6±0 6±0 6±0 table 3: antibacterial activity of liubao chongcha and liubao black tea against s.aureus (mic& mbc). minimum inhibitory concentration concentration (mg/ml) 5 2.5 1.25 0.625 0.313 0.156 0.078 0.039 0.02 0.01 liubao chongcha + + + + + + liubao black tea + + + + + + + minimum bactericidal concentration liubao chongcha + + + + + + liubao black tea + + + + + + + "-" indicates no turbidity, suggesting antibacterial effect; "+" indicates turbidity, suggesting no antibacterial effect. figure 1: antibacterial activity of liubao chongcha and liubao black tea against s.aureus. agbioforum, 26(1), 2024 | 22 wu et al. antibacterial activity study of liubao chongcha extract the mic and mbc of the aqueous extracts of liubao chongcha and liubao black tea were determined using the mh broth dilution method. s. aureus was selected as the representative bacterium for this measurement. the experimental results demonstrated significant antibacterial activity against s. aureus using both liubao chongcha (mic and mbc = 0.625 mg/ml) and liubao black tea (mic and mbc = 1.25 mg/ml). the results indicate that the aqueous extract of liubao chongcha exhibits a more potent antibacterial effect against s. aureus compared to liubao black tea (table 3& figure 1). discussion chongcha, a chinese medicinal tea, is highly valued for its health-promoting properties and its association with longevity among mountain residents. chongchain china exhibits a diverse range of traditional types that are distinguished by their elevated amino acid content, extensive variety, and well-balanced proportions. additionally, they contain a wide range of minerals and trace elements that are advantageous for human health (jiang, 2000; liang et al., 2023). pathogenic microorganisms, including s. aureus, p. aeruginosa, and e. coli, are widely distributed and can have adverse effects on human health. liubao chongcha exhibited significant inhibitory effects against s. aureus, as well as inhibitory effects against e. coli and p. aeruginosa. tan et al. demonstrated comparable outcomes by showing strong antibacterial inhibition against a range of microorganisms, including s. aureus and b. subtilis (tan et al., 2002). hence, it can be argued that the consumption of liubao chongcha may have potential benefits for specific intestinal diseases caused by s.aureus, suggesting its potential role in modulating intestinal homeostasis. the antibacterial effect of aqueous extracts in vitro is directly proportional to the concentration of the extract. nevertheless, the use of a high concentration of liubao chongcha extract in this experiment resulted in increased viscosity and the presence of both antibacterial and nonantibacterial components. this could have contributed to the observed variability in the experimental results. pan et al. conducted a study on fermented samples of liubao chongcha, using omics analysis to identify critical microorganisms, biomarker chemicals, and a stable microbial community structure (pan et al., 2024). this study utilised the disc diffusion method to investigate the antibacterial effects of aqueous extracts from liubao chongcha and liubao black tea on various gram-positive and gram-negative microorganisms. liubo black tea showed weaker antibacterial activity compared to the former, especially against gram-positive s. aureus. both teas exhibited reduced inhibition against gram-negative bacteria, such as e. coli and p. aeruginosa. additionally, neither of the tea extracts showed sensitivity to b. subtilis, as indicated by the lack of an inhibitory zone. the results of this study support the findings of another study that showed the potential of liubao chongcha polyphenols in preventing gastric injury in mice (zhang et al., 2020). the mic and mbc of the tea extracts against the representative microorganism, s. aureus, were determined using the m-h broth dilution method. the antibacterial activity of both tea extracts against s. aureus was found to be promising. the aqueous extract of liubao chongcha exhibited a stronger antibacterial effect compared to liubao black tea. liubao tea extract has been reported to have potential in inhibiting harmful bacteria such as streptococcus and delftia acidovorans, while promoting the growth of firmicutes and actinobacteria and reducing the abundance of proteobacteria, thus helping to maintain a balanced oral microecology (liu et al., 2024; zhou et al., 2023). the literature documents additional benefits of liubao chongcha and liubao black tea. guo et al. (2023) observed significant reductions in the production of proinflammatory cytokines and inflammatory cells associated with allergic asthma. the tea contains various compounds such as alkaloids, peptides, free amino acids, polyphenols, polysaccharides, and volatile compounds. these compounds have been linked to numerous health benefits, including antioxidant, anti-obesity, anti-diabetic, anti-cancer, gastrointestinal and cardiovascular protection, hepatoprotection, neuroprotection, and photoprotection (cao et al., 2020; lin et al., 2021).the bioactive components of chongcha are known to possess remarkable antioxidant properties (yi et al., 2020; zhu et al., 2019). conclusion health should not be neglected in today's fast-paced society, and proper dietary therapy is essential for maintaining optimal well-being. consuming tea is a prevalent practice among individuals, thus highlighting the significance of creating tea beverages that promote gastrointestinal health. the study found that the extract of liubao chongcha has a significant antibacterial effect on gram-positive bacteria, specifically s. aureus. this suggests that it may have potential in promoting gastrointestinal health. chongcha polyphenols have significant antioxidant and anti-aging properties. moreover, the reliance on labour and expertise, coupled with our inadequate understanding of the intricate interconnections and underlying mechanisms associated with processing, bioactivities, and organoleptic quality, still hinder the advancement of liubao chongcha and liubao black tea. therefore, further research is necessary to address these gaps. acknowledgement this work was supported by the 2022 guangdong provincial administration of traditional chinese medicine research project [grant number: 20222153] references cao, s.-y., li, b.-y., gan, r.-y., mao, q.-q., wang, y.-f., shang, a., et al. 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https://doi.org/10.1016/j.foodchem.2019.126043 https://doi.org/10.1016/j.foodchem.2019.126043 agbioforum, 26(1): 1-8. © 2024 agbioforum siregar et al. — factors affecting the crude palm oil production and prices: evidence from indonesian economy factors affecting the crude palm oil production and prices: evidence from indonesian economy m. akbar siregar* universitas medan area, medan, sumatera utara, indonesia. orcid id: https://orcid.org/0009-0000-9893-1409 email: akbar@uma.ac.id saribulan tambunan universitas medan area, medan, sumatera utara, indonesia. orcid id: https://orcid.org/0000-0001-8817-693x email: sari@staff.uma.ac.id adelina lubis universitas medan area, medan, sumatera utara, indonesia. orcid id: https://orcid.org/0000-0003-0593-5094 email: adelina@staff.uma.ac.id ikbar pratama universitas medan area, medan, sumatera utara, indonesia. orcid id: https://orcid.org/0000-0002-7897-2737 email: ikbar.p@gmail.com crude palm oil (cpo) production has been a pivotal factor in the economic growth of cpo production companies, influenced by various determinants and necessitating further research. this study investigates the impact of labour wage rate, workers’ education, production land, interest rate, and inflation rate on cpo production and prices in indonesia. utilizing secondary data from statista and world development indicators (wdi) covering the period from 1994 to 2023, the study employs the dynamic autoregressive distributed lag (dardl) approach to analyse the relationships among these variables. the findings indicate that labour wage rate, workers’ education, production land, interest rate, and inflation rate are positively correlated with cpo production and prices in indonesia. the study offers policy recommendations, suggesting that regulators should focus on increasing labour wages, improving workers' education, and expanding production land to enhance cpo production and prices. keywords: labour wage rate, workers’ education, production land, interest rate, inflation rate, cpo production, cpo prices. introduction given the interdependent factors determining the production and prices of cpo in the indonesian economy, this research delves into a complex and nuanced analysis. as the world's largest producer of palm oil, indonesia has integrated the palm oil industry as a crucial component of its economy, holding significant and competitive positions in both domestic and international markets (kadarusman & herabadi, 2018). this study aims to evaluate the multifaceted determinants affecting cpo production and prices, with a particular focus on labour wage rates, worker education levels, production land, loan interest rates, and overall inflation rates. palm oil is a cornerstone of indonesia’s socio-political and economic framework, providing employment opportunities, generating export revenues, and facilitating rural transformation (córdoba, abrams, & selfa, 2022). fluctuations in cpo production and prices have far-reaching impacts across various sectors of the economy, influencing survival strategies, business decisions, and governmental policies. in this context, analysing the interactions between the fundamental drivers of cpo production and prices is invaluable for a wide range of stakeholders, including policymakers, industry participants, and investors. the labour wage rate is a critical component in the cost structure of the palm oil industry. there is a strong relationship between the wages offered to plantation employees and the overall competitiveness, profitability, and long-term viability of the sector. according to pickard, draganova, nakova, and chengelova (2022), labour wage rates can influence the mechanization-to-manual labour ratio, employment trends, and productivity levels. furthermore, the education and training of workers significantly impact the quality of inputs and the efficiency of transforming these inputs into outputs. higher levels of education and training among workers lead to increased productivity, innovation, and the ability to handle technological advancements, which in turn enhance the production capacity and global competitiveness of cpo (lim, jeffree, saupin, giloi, & lukman, 2022). purnomo et al. (2020) suggest that the quality and availability of production land are crucial determinants of cpo production in indonesia. the future of palm oil production is closely tied to the availability of additional land for cultivation, often regulated by standards concerning land use, environmental conservation, and indigenous land rights. the inability of developers to access new areas for expansion poses a significant challenge to the industry's growth. moreover, the quality of the land, including soil fertility, land structure, and climate, directly affects cpo yields and production costs (paterson & lima, 2018). therefore, introducing sustainable land management practices and enhancing land productivity are essential for boosting cpo production in indonesia. interest rates play a crucial role in shaping investment decisions and capital capabilities within the palm oil industry. variations in interest rates affect the cost of capital needed for plantation establishment, equipment acquisition, and the adoption of efficient, environmentally friendly farming practices (tey, brindal, darham, sidique, & djama, 2020). currently, low interest rates can enhance investment in the palm oil industry by increasing production capacity and, consequently, the supply of palm oil. conversely, high interest rates may deter investment, limiting expansion strategies and capital-intensive developments (batlle et al., 2021). interest rate policies significantly influence cpo production through their effects on inflation, exchange rate variability, and broader monetary policy measures, adding complexity to the economic interdependencies involved. inflation rates are also critical in influencing cpo production and pricing in indonesia. inflation increases the cost of products domestically, which can reduce demand both locally and in export markets (khatiwada, palmén, & silveira, 2018). additionally, inflation raises production costs by increasing expenses for labour, fertilizers, and energy. according to kilian and zhou (2022), the https://orcid.org/0009-0000-9893-1409 mailto:akbar@uma.ac.id https://orcid.org/0000-0001-8817-693x mailto:sari@staff.uma.ac.id https://orcid.org/0000-0003-0593-5094 mailto:adelina@staff.uma.ac.id https://orcid.org/0000-0002-7897-2737 mailto:ikbar.p@gmail.com agbioforum, 26(1), 2024 | 2 siregar et al. — factors affecting the crude palm oil production and prices: evidence from indonesian economy inflationary impact on production costs can negatively affect profit margins for producers. to mitigate these effects, palm oil producers must enhance efficiency to reduce costs. however, the challenges posed by inflation to cpo production require a combination of demand management tools, such as monetary and fiscal policies, alongside supply-side strategies to control prices and promote industry growth (lugo-arias et al., 2024). the study endeavours to forecast the determining factors influencing cpo production and pricing within the indonesian economy. it scrutinizes parameters including labour wage rates, worker education, production land availability, interest rates, and inflation rates. the research aims to elucidate the interrelation of these determinants with cpo production and prices, assessing their impact on the palm oil sector and proposing policy implications to foster enhanced performance and sustainable development. furthermore, the study addresses gaps in existing literature by employing cross-sectional analysis to explore various factors shaping cpo generation and pricing in indonesia. by bridging these knowledge lacunae and shedding light on the complexities inherent in the palm oil industry, this work endeavours to furnish valuable insights for policymakers, industry stakeholders, and prospective investors keen on understanding the challenges and prospects within this pivotal sector of the economy. in the following section of this study, we will review the relevant literature, outline the research methodology, and conduct a comprehensive empirical analysis to test the proposed hypotheses. literature review the labour wage rate is positively associated with crude palm oil production, primarily due to the significant contribution of labour inputs in regions where palm oil cultivation is intensive (shahiri, cheng, & al‐hadi, 2021). however, this association has implications for the profitability of palm oil producers, as higher labour wages increase production costs. consequently, organizations may face pressure to invest in new technologies or adopt better practices to mitigate these costs and potentially reduce product prices (shahiri et al., 2021). conversely, agénor and lim (2018) argue that lower labour wages can effectively reduce production costs, thereby enhancing profit margins. nevertheless, it is crucial to maintain wages at a reasonable level, as this can impact the quality and sustainability of production practices. wellcompensated employees tend to exhibit positive attitudes, leading to increased productivity and adherence to sustainable farming methods, ultimately improving palm oil yields and quality (pickard et al., 2022). in contrast, inadequate wages may lead to negative consequences such as staff shortages, high turnover rates, and working conditions that place undue pressure on employees. these factors not only pose reputational risks but also attract regulatory scrutiny, potentially affecting the industry's long-term sustainability (agénor & lim, 2018). additionally, cheap labour wages can influence the socio-economic dynamics of palm oil-producing regions. higher wages contribute to improved living standards and stimulate local economic activities, fostering social stability (pickard et al., 2022). therefore, we propose that, h1: labour wage rate has a relation with crude palm oil production. cpo is a vital source of vegetable oil and food globally, and worker education significantly impacts the productivity and profitability of the industry. educated workers are more likely to adopt advanced farming techniques, leading to higher oil yields (cock, prager, meinke, & echeverria, 2022). they are adept at managing machinery, pest control, and disease prevention while employing environmentally sustainable practices. moreover, lim et al. (2022) suggest that higher education standards in the workplace enhance safety, reducing accidents and violence, and promote better communication and cooperation among employees, which are essential for improving production outcomes (cock et al., 2022). additionally, well-educated workers tend to be more aware of their rights and the importance of fair treatment, fostering a positive and productive workforce (d’cruz et al., 2022). this can create a market advantage by attracting investors and buyers who prioritize ethical sourcing practices. thus, investing in worker education benefits the individual employees and is crucial for the overall sustainability and viability of the cpo industry. therefore, we say that, h2: worker education has a relation with crude palm oil production. production land is a significant factor influencing cpo production, encompassing both the availability and quality of land in the region. palm oil cultivation typically requires large tracts of land with suitable environmental conditions, including optimal soil type, climate, and water regimes (jelsma, woittiez, ollivier, & dharmawan, 2019). for instance, malaysian land, known for its suitability for palm oil production, has high yield expectations due to its conducive environmental factors, such as rich, welldrained soil and adequate rainfall. these conditions enhance the efficiency and production capacity of palm oil, thereby contributing to the industry's profitability (khatiwada et al., 2018). conversely, if the land is less productive, the yield and economic returns will be lower, as the crop may require additional resources like fertilizers and water to thrive (siderius et al., 2021). furthermore, jelsma et al. (2019) highlight that the establishment of palm oil plantations, along with the processing and consumption of palm oil products, impacts deforestation and land-related issues, raising environmental concerns and prompting legislative scrutiny. balancing the need for increased production with sustainable land management practices is crucial to address these environmental and regulatory challenges. therefore, we hypothesize that. h3: production land has a relation with crude palm oil production. based on the findings of tey et al. (2020), the interest rate significantly influences the cost of capital for plantation agbioforum, 26(1), 2024 | 3 siregar et al. — factors affecting the crude palm oil production and prices: evidence from indonesian economy investments and operations, thereby directly impacting cpo production. low interest rates, as noted by syahza (2019), facilitate easier access to credit for expanding existing palm oil plantations, acquiring modern machinery and equipment, and implementing advanced techniques in oil palm cultivation. this, in turn, enhances production capacity, efficiency, and competitiveness. conversely, high interest rates, as highlighted by in, manav, venereau, and weyant (2022), diminish the feasibility of leveraging, potentially reducing investments in essential infrastructure and technology needed to improve output and competitiveness. moreover, periodic fluctuations in interest rates affect the broader economy, influencing the flow and level of economic activity, as well as market prices, including those of palm oil. therefore, we propose that, h4: interest rate has a relation with crude palm oil production. given the research by batlle et al. (2021), inflation rates play a significant role in the annual and economic planning of cpo production. high inflation can elevate production costs for palm oil, as it often leads to increases in the prices of factors of production such as fertilizers, labour, and machinery. this scenario may narrow profit margins and discourage investment in maintaining or expanding plantations. conversely, moderate inflation can be advantageous for palm oil producers, as product prices may escalate at a faster rate than production costs, thereby enhancing profitability (ng et al., 2022). however, sustained increases in the inflation rate can disrupt economic conditions, potentially impeding production and supply chain momentum (batlle et al., 2021). moreover, according to chandrarin, sohag, cahyaningsih, yuniawan, and herdhayinta (2022), inflation influences price levels in a country, affecting demand for products derived from palm oil. therefore, it is essential to manage inflation and minimize its positive correlation with production and market risks to foster the development of the crude palm oil sector. therefore, we make a hypothesis that, h5: inflation rate has a relation with crude palm oil production. the cost price of cpo is influenced by labour wage rates, as highlighted by hoaihongthong and kwiecien (2022). this dynamic presents a dilemma for palm oil producers, as higher labour costs may compel them to raise the price of the final product to offset losses, potentially undermining the intended benefits of providing higher wages. conversely, lower labour costs can contribute to reduced production expenses, enabling the possibility of offering lower-priced products in the market (chen, kumara, & sivakumar, 2021). however, as noted by greenwald (2018), low wages can lead to labour shortages and unfavourable working conditions, which can ultimately hinder commodity production and inflate costs in the long term. additionally, appropriate wages have the potential to enhance worker productivity and retain top talent, thereby promoting business efficiency and product quality (kryscynski, coff, & campbell, 2021). achieving this balance may require small and medium-sized enterprises (smes) to align worker compensation with industry profitability to ensure the stability of cpo prices and the sustainable expansion of the sector. therefore, we say that, h6: labour wage rate has a relation with crude palm oil prices. worker education significantly influences cpo prices by shaping production rates, efficiency, and quality. according to lee, suh, roy, and baucus (2019), educated workers are more adept at adopting innovative production techniques, operating machinery, and adhering to best practices, resulting in increased cpo yields and improved quality. this enhanced efficiency can potentially reduce production costs, leading to lower product prices for consumers. furthermore, better-educated human capital explores sustainable farming methods, which enhances the prestige of the farming industry and the final product (nordin et al., 2022). this may either support product prices or increase demand due to the ethical considerations associated with sustainably produced oil. conversely, inadequate worker education may result in poor working methods, increased losses, reduced returns, and higher production costs, leading to elevated product prices in the market (sekaran, lai, ussiri, kumar, & clay, 2021). hence, prioritizing investments in worker education is crucial for achieving competitive and stable demand for cpo prices. therefore, we propose that, h7: worker education has a relation with crude palm oil prices. according to syahnur, majid, zulham, saputra, and badli (2019), production land is identified as a crucial determinant of cpo prices, primarily influenced by its availability and quality. favourable geographical locations with suitable land for oil palm plantations tend to yield higher productivity, thereby contributing to lower production costs and potentially more stable or even lower market prices (varkkey, tyson, & choiruzzad, 2018). however, the scarcity of sufficient land can drive up the costs of purchasing and establishing plantations, consequently leading to an increase in palm oil prices. furthermore, the expansion of palm oil plantations often accompanies deforestation and changes in land use, attracting regulatory attention and environmental concerns, both of which have implications for supply and its impact on prices (potter, 2020). effective stewardship of the soil base can enhance production while mitigating negative environmental impacts, thereby promoting price stability (varkkey et al., 2018). therefore, we say that, h8: production land has a relation with crude palm oil prices. interest rates directly impact cpo prices due to their influence on the cost of capital. higher inflation rates can lower the cost of capital, enabling palm oil producers to expand and upgrade operations, potentially increasing supply and reducing prices. conversely, high interest rates increase borrowing costs, limiting investment in innovation and infrastructure, leading to lower production rates and supply. additionally, fluctuations in exchange rates, driven by changes in interest rates, affect the competitiveness of palm oil in international markets. therefore, maintaining sustainable interest rates is crucial for encouraging production and stabilizing cpo prices. therefore, we say that, h9: interest rate has a relation with crude palm oil prices. fluctuations in exchange rates play a crucial role in influencing agbioforum, 26(1), 2024 | 4 siregar et al. — factors affecting the crude palm oil production and prices: evidence from indonesian economy cpo prices, as highlighted by go and lau (2024). cpo, being a global commodity, is traded in international markets where exchange rate fluctuations can impact producers' and traders' business transactions. additionally, low interest rates may attract investors to commodities like crude palm oil, increasing demand and consequently raising prices. furthermore, fluctuations in interest rates, as noted by lugoarias et al. (2024), can affect the value of currencies relative to each other, thereby influencing the competitiveness of palm oil exports. higher interest rates may discourage investment in commodities, leading to reduced demand and lower prices (kilian & zhou, 2022). these insights underscore the importance of closely monitoring monetary policy changes and their interrelated economic attributes for market players in the cpo industry. therefore, we propose that, h10: inflation rate has a relation with crude palm oil prices. the study has identified five predictors: labour wage rate, workers’ education, production land, interest rate, and inflation rate, alongside two predictive variables: cpo production and cpo prices. drawing from the literature reviewed, the study has formulated the model depicted in figure 1. figure 1: theoretical model. research methods the research investigates the influence of labour wage rate, workers’ education, production land, interest rate, and inflation rate on both the production of cpo and its prices within the indonesian context. secondary data sourced from statista and the world development indicators (wdi) spanning the period from 1994 to 2023 were utilized for analysis. the study formulated a comprehensive equation to elucidate these relationships: 𝐶𝑃𝑂𝑃𝑡 = 𝛼0 + 𝛽1𝐿𝑊𝑅𝑡 + 𝛽2𝑊𝐸𝑡 + 𝛽3𝑃𝐿𝑡 + 𝛽4𝐼𝑅𝑡 + 𝛽5𝐼𝑁𝐹𝑡 + 𝑒𝑡 (1) 𝐶𝑃𝑂𝑃𝑅𝑡 = 𝛼0 + 𝛽1𝐿𝑊𝑅𝑡 + 𝛽2𝑊𝐸𝑡 + 𝛽3𝑃𝐿𝑡 + 𝛽4𝐼𝑅𝑡 + 𝛽5𝐼𝑁𝐹𝑡 + 𝑒𝑡 (2) where cpop = crude palm oil production cpopr = crude palm oil prices t = time period lwr = labour wage rate we = workers’ education pl = production land ir= interest rate inf = inflation the study incorporated two predictive variables: cpo production, quantified as production volume in million metric tons, and cpo prices, expressed in us dollars per metric ton. additionally, the study integrated five predictors: labour wage rate, gauged by wage and salaried workers, male (% of male employment); workers’ education, assessed by labour force with advanced education (% of total working-age population with advanced education); production land, quantified as permanent cropland (% of land area); interest rate, measured as real interest rate (%); and inflation, indicated by consumer prices (annual %). table 1 outlines these measurements. table 1: variables with measurements. s# variables measurement sources 01 cpo production production volume in million metric ton statista 02 cpo prices us dollar in per metric ton statista 03 labour wage rate wage and salaried workers, male (% of male employment) wdi 04 workers’ education labour force with advanced education (% of total working-age population with advanced education) wdi 05 production land permanent cropland (% of land area) wdi 06 interest rate real interest rate (%) wdi 07 inflation inflation, consumer prices (annual %) wdi descriptive statistics were employed to examine the details of the constructs, including average values, standard deviations, as well as maximum and minimum values. furthermore, a correlation matrix was utilized to assess the relationships among variables. additionally, the phillips-perron (pp) and augmented dickey–fuller (adf) tests were conducted to investigate the presence of unit root. the equation utilized in the study is outlined below: 𝑑(𝑌𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑌𝑡−1 + 𝑑(𝑌𝑡(−1)) + ɛ𝑡 (3) furthermore, the study applied the approach proposed by westerlund and edgerton (2008) to investigate cointegration within the model. the equations corresponding to this approach are provided below: lmφ(i) = tφ̂i (r̂i/σ̂i ) (4) lmτ(i) = φ̂i/se(φ̂i) (5) in equations (4) and (5), �̂�𝑖, exposed the estimate beside standard error, while �̂�2 𝑖 exposed the long-run measured variance, while 𝜑𝑖 (𝐿) = 1 − ∑ 𝜑𝑖𝑗𝐿𝑗 exposed the scalar polynomial with l lag length, and ρi exposed the factor loading parameters vector. additionally, the study employed the ardl approach to examine the relationships among the variables under investigation. the ardl method is considered appropriate when the variables exhibit no unit root at i(0) and i(1) levels labour wage rate interest rate production land workers’ education crude palm oil prices crude palm oil production inflation agbioforum, 26(1), 2024 | 5 siregar et al. — factors affecting the crude palm oil production and prices: evidence from indonesian economy (nazir, nazir, hashmi, & ali, 2018). moreover, this approach effectively addresses the effects of heteroscedasticity and autocorrelation on the outcomes (zaidi & saidi, 2018). the equation utilized in the analysis is provided below: ∆𝐶𝑃𝑂𝑃𝑡 = 𝛼0 + ∑𝛿1∆𝐶𝑃𝑂𝑃𝑡−1 + ∑𝛿2∆𝐿𝑊𝑅𝑡−1 + ∑𝛿3∆𝑊𝐸𝑡−1 + ∑𝛿4∆𝑃𝐿𝑡−1 + ∑𝛿5∆𝐼𝑅𝑡−1 + ∑𝛿6∆𝐼𝑁𝐹𝑡−1 + 𝜑1𝐶𝑃𝑂𝑃𝑡−1 + 𝜑2𝐿𝑊𝑅𝑡−1 + 𝜑3𝑊𝐸𝑡−1 + 𝜑4𝑃𝐿𝑡−1 + 𝜑5𝐼𝑅𝑡−1 + 𝜑6𝐼𝑁𝐹𝑡−1 + ɛ𝑡 (6) ∆𝐶𝑃𝑂𝑃𝑅𝑡 = 𝛼0 + ∑𝛿1∆𝐶𝑃𝑂𝑃𝑅𝑡−1 + ∑𝛿2∆𝐿𝑊𝑅𝑡−1 + ∑𝛿3∆𝑊𝐸𝑡−1 + ∑𝛿4∆𝑃𝐿𝑡−1 + ∑𝛿5∆𝐼𝑅𝑡−1 + ∑𝛿6∆𝐼𝑁𝐹𝑡−1 + 𝜑1𝐶𝑃𝑂𝑃𝑅𝑡−1 + 𝜑2𝐿𝑊𝑅𝑡−1 + 𝜑3𝑊𝐸𝑡−1 + 𝜑4𝑃𝐿𝑡−1 + 𝜑5𝐼𝑅𝑡−1 + 𝜑6𝐼𝑁𝐹𝑡−1 + ɛ𝑡 (7) lastly, the study employed the dardl approach to examine the associations among variables, as established by jordan and philips (2018). this approach addresses additional issues that the ardl model may not cover. the dardl equation is presented below: ∆𝐶𝑃𝑂𝑃𝑡 = 𝛼0 + ∑𝛿1∆𝐶𝑃𝑂𝑃𝑡−1 + ∑𝛿2∆𝐿𝑊𝑅𝑡 + ∑𝛿3∆𝐿𝑊𝑅𝑡−1 + ∑𝛿4∆𝑊𝐸𝑡 + ∑𝛿5∆𝑊𝑅𝑡−1 + ∑𝛿6∆𝑃𝐿𝑡 + ∑𝛿7∆𝑃𝐿𝑡−1 + ∑𝛿8∆𝐼𝑅𝑡 + ∑𝛿9∆𝐼𝑅𝑡−1 + ∑𝛿10∆𝐼𝑁𝐹𝑡 + ∑𝛿11∆𝐼𝑁𝐹𝑡−1 + ɛ𝑡 (8) ∆𝐶𝑃𝑂𝑃𝑅𝑡 = 𝛼0 + ∑𝛿1∆𝐶𝑃𝑂𝑃𝑅𝑡−1 + ∑𝛿2∆𝐿𝑊𝑅𝑡 + ∑𝛿3∆𝐿𝑊𝑅𝑡−1 + ∑𝛿4∆𝑊𝐸𝑡 + ∑𝛿5∆𝑊𝑅𝑡−1 + ∑𝛿6∆𝑃𝐿𝑡 + ∑𝛿7∆𝑃𝐿𝑡−1 + ∑𝛿8∆𝐼𝑅𝑡 + ∑𝛿9∆𝐼𝑅𝑡−1 + ∑𝛿10∆𝐼𝑁𝐹𝑡 + ∑𝛿11∆𝐼𝑁𝐹𝑡−1 + ɛ𝑡 (9) research findings descriptive statistics were conducted to analyse the characteristics of the variables. the results revealed that the average value of cpop was 34.901 million metric tons, while the average cpopr stood at 1454.382 us dollars per metric ton. additionally, the average lwr was 44.537 percent, and the average percentage of we was 84.179 percent. furthermore, the average value of lp was 10.945 percent, the ir averaged at 14.482 percent, and inf averaged at 8.442 percent. table 2 presents these findings in detail. table 2: descriptive statistics. variable obs mean std. dev. min max cpop 30 34.901 3.291 27.871 48.769 cpopr 30 1454.382 32.021 903.053 1754.462 lwr 30 44.537 6.445 35.693 53.577 we 30 84.179 3.055 78.84 89.028 lp 30 10.945 2.531 7.201 15.381 ir 30 4.482 6.995 -24.600 12.322 inf 30 8.442 10.255 1.560 58.451 furthermore, a correlation analysis was conducted to examine the relationships among variables using a correlation matrix. the results indicated that lwr, we, lp, ir, and inf exhibited positive correlations with both cpop and cpopr. table 3 provides a detailed overview of these findings. table 3: matrix of correlations. variables cpop cpopr lwr we lp ir inf cpop 1.000 cpopr 0.900 1.000 lwr 0.985 0.924 1.000 we 0.209 0.244 -0.169 1.000 lp 0.939 0.906 0.918 -0.418 1.000 ir 0.145 0.114 0.199 0.003 0.074 1.000 inf 0.423 0.493 -0.466 0.282 -0.464 -0.686 1.000 additionally, the pp and adf tests were employed to assess the presence of unit root. the results indicated that cpop, cpopr, lwr, ir, and inf are stationary at i (0), while we and lp are stationary at i (1). table 4 presents these findings. table 4: unit root test. adf pp series level first difference level first difference cpop -2.986*** ------2.842*** ----- cpopr -2.887*** ------2.171*** ----- lwr -3.021*** -----3.664*** ----- we ------4.382*** ------5.463*** lp ------4.325*** ------5.647*** ir -2.546*** ------3.221*** ----- inf -3.102*** ------2.773*** ----- furthermore, the study employed the approach proposed by westerlund and edgerton (2008) to investigate cointegration within the model. the results indicated that the p-values did not exceed the threshold of 0.05, and the tvalues were greater than 1.96, suggesting the presence of co-integration. table 5 displays these results. table 5: co-integration test. model no shift mean shift regime shift test stat p-value test stat p-value test stat p-value lmτ -3.331 0.000 -3.981 0.000 -4.392 0.000 lmφ -3.983 0.000 -3.995 0.000 -4.765 0.000 finally, the study applied the dardl approach to investigate the impact of lwr, we, lp, ir, and inf on cpop. the results indicated a positive relationship between lwr, we, lp, ir, inf, and cpop in indonesia, agbioforum, 26(1), 2024 | 6 siregar et al. — factors affecting the crude palm oil production and prices: evidence from indonesian economy supporting hypotheses h1, h2, h3, and h4. these relationships are summarized in table 6. table 6: dynamic ardl model. variable coefficient t-statistic prob. ect -1.492*** -5.764 0.000 𝐿𝑊𝑅𝑡−1 0.282*** 5.473 0.000 lwr 0.431** 2.019 0.043 𝑊𝐸𝑡−1 0.321** 2.122 0.035 we 1.374*** 5.894 0.000 𝐿𝑃𝑡−1 0.575*** 5.483 0.000 lp 2.982*** 5.664 0.002 𝐼𝑅𝑡−1 1.837** 2.011 0.046 ir 1.765** 2.199 0.029 𝐼𝑁𝐹𝑡−1 0.464*** 5.764 0.000 inf 0.432*** 4.389 0.000 cons 3.272*** 4.764 0.000 r square = 64.444 stimulation = 5000 finally, the dardl approach was employed to examine the impact of lwr, we, lp, ir, and inf on cpopr. the results indicated a positive relationship between lwr, we, lp, ir, inf, and cpo prices in indonesia, supporting hypotheses h5, h6, h7, and h8. these relationships are presented in table 7. table 7: dynamic ardl model. variable coefficient t-statistic prob. ect -1.092*** -4.382 0.000 𝐿𝑊𝑅𝑡−1 2.108** 2.102 0.034 lwr 2.191*** 4.392 0.000 𝑊𝐸𝑡−1 0.103*** 5.493 0.000 we 0.632*** 5.782 0.000 𝐿𝑃𝑡−1 3.804*** 5.319 0.000 lp 0.320** 2.019 0.043 𝐼𝑅𝑡−1 1.294*** 5.472 0.000 ir 2.325** 2.009 0.048 𝐼𝑁𝐹𝑡−1 1.292*** 5.654 0.000 inf 2.191*** 5.575 0.000 cons 2.187*** 4.873 0.000 r square = 60.654 stimulation = 5000 discussions of the results the study explores the intricate relationship between various determinants and the production as well as pricing dynamics of cpo in indonesia. among these determinants, labour wage rates emerge as pivotal factors shaping the landscape of palm oil production. this holds significance as elucidated by pickard et al. (2022), who underscore that higher wages incentivize the adoption of mechanization and cost-saving measures, such as investment in efficiency-enhancing technologies, leading to heightened productivity and output levels. however, the study reveals that escalating labour costs may exert pressure, prompting a commensurate increase in production costs, thereby diminishing profitability and favourability. moreover, the study underscores the importance of labour-related interventions, such as education attainment and skill development among human assets, in bolstering overall productivity and fostering creativity (agénor & lim, 2018). additionally, worker education levels emerge as a consistent driver for the efficient and sustainable production of cpo. the findings suggest that strategies addressing this issue could involve augmented expenditure on education and training, enabling workers to acquire requisite knowledge in areas such as the adoption of best practices and enhancing work productivity to mitigate the firm's environmental footprint through efficient resource utilization. education initiatives for plantation workers yield positive outcomes in fostering the adoption of sustainable farming practices, thereby enhancing long-term productivity and resilience against external shocks (siderius et al., 2021). this paper highlights the critical role of production land availability and quality in influencing cpo production in indonesia. factors such as land tenure rights, environmental considerations, and alternative land uses shape land utilization for palm oil production (varkkey et al., 2018). however, increasing land complexity, including issues of scarcity and degradation, poses significant limitations to achieving sustainable growth in the palm oil industry (syahza, 2019). addressing these challenges necessitates the formulation and implementation of sustainable land management policies. consequently, the study emphasizes the importance of capital investment in research and development to enhance sustainable land productivity for the sector's progressive future. furthermore, the interest rate plays a crucial role in managing investment risk and resource allocation in the palm oil industry. a decrease in interest rates incentivizes investment in plantation expansion, thereby increasing production capacity and supply. conversely, higher interest rates may dampen investment interest and hinder industry growth (batlle et al., 2021). notably, interest rates impact macroeconomic factors such as inflationary pressure and exchange rate fluctuations, illustrating the interconnectedness within the economy (tey et al., 2020). moreover, inflation rates are identified as influential factors affecting cpo producer prices and production in indonesia. international inflation can diminish consumer purchasing power or escalate production costs, thereby impacting the international market (syahza, 2019). these factors underscore the intricate interdependency within the palm oil industry and its broader economic context. inflation can escalate production costs by increasing expenses like labour, fertilizers, and energy, thereby threatening profits for palm oil producers (chandrarin et al., 2022). to mitigate deflationary risks and their adverse impact on cpo production, implementing a comprehensive inflation stabilization policy comprising monetary, fiscal, and supply-side measures is essential to stabilize prices and promote sustainable growth in the palm oil industry. implications of the study the study offers significant implications for policymakers, industry players, and investors. firstly, it provides policymakers with valuable insights into the factors driving cpo production and pricing dynamics, enabling them to formulate tailored policies that support sectoral development, enhance productivity, and promote sustainability. policymakers and industry stakeholders, including palm oil producers and investors, can leverage the findings as a strategic resource to inform their decision-making processes and future investments. furthermore, by uncovering the multifaceted impacts of factors such as labour wage rates, worker education, production land, interest rates, and inflation on the palm oil industry, the research underscores the complexity of the industry's challenges, necessitating agbioforum, 26(1), 2024 | 7 siregar et al. — factors affecting the crude palm oil production and prices: evidence from indonesian economy comprehensive and coordinated solutions. limitations and future directions however, like any scholarly work, this study has its limitations, particularly in addressing the research questions regarding the determinants of cpo production and prices in the indonesian economy. firstly, the study's reliance on data availability and quality may constrain its breadth and depth, as data sources may not always be comprehensive or reliable. additionally, external factors such as geopolitical events, weather 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(2018). environmental pollution, health expenditure and economic growth in the sub-saharan africa countries: panel ardl approach. sustainable cities and society, 41, 833-840. doi: https://doi.org/ 10.1016/j.scs.2018.04.034 https://doi.org/10.1016/j.tncr.2024.200063 https://doi.org/10.1016/j.tncr.2024.200063 https://doi.org/10.1080/15435075.2018.1529590 https://doi.org/10.1002/ece3.3610 https://doi.org/10.1007/978-3-030-94743-9_4 https://doi.org/10.1016/j.forpol.2020.102089 https://doi.org/10.1016/j.jafr.2021.100190 https://doi.org/10.1002/psp.2404 https://doi.org/10.32479/ijeep.8010 https://doi.org/10.1108/meq-11-2018-0190 https://doi.org/10.1016/j.jclepro.2019.119775 https://doi.org/10.1016/j.forpol.2018.05.002 https://doi.org/10.1111/j.1468-0084.2008.00513.x https://doi.org/10.1111/j.1468-0084.2008.00513.x agbioforum, 24(3): 1-7. ©2022 agbioforum the role of financial credits, economic growth, and sustainable energy on the environmental condition in iraq mona abdel sakban fahd university of babylon, college of administration and economics, iraq email: bus.sakban@student.uobabylon.edu.iq mahdi khaleel shadeed al-mamoori university of babylon, college of administration and economics, iraq email: bus.mahdi.khaleel@uobabylon.edu.iq hussein abbas al-shammari university of babylon, college of administration and economics, iraq email: bus.hussein.abbas@uobabylon.edu.iq due to enormous commercial and financial operations that demand new literature and the experience of regulators, environmental degradation has become an important issue. consequently, this study investigates the effect of financial credits, economic growth (eg), renewable energy (re) output, and energy import on iraq's environmental condition (carbon dioxide (co2) emissions. the paper also utilized a control variable, such as industrialization, to predict iraq's environmental circumstances. from 1991 through 2020, secondary statistics were gathered from the world development indicators (wdi). dynamic auto-regressive distributed lags (dardl) were used to examine the variables' relationship. financial credits, economic growth, re output, energy import, and industrialization were found to have a negative relationship with co2 emissions in iraq. the research advises policymakers on preventing environmental deterioration through effective financial credits, economic growth, and renewable energy. key words: financial credits, economic growth, renewable energy output, energy import, environmental condition, co2 emissions. 1. introduction in iraq and other developing countries, bank credit is defined as money granted by financial institutions exclusively to private sector enterprises and households. it excludes government-provided finance. the average value of bank credit in iraq between 1960 and 2020 was 7.97 percent, with a minimum of 1.27 percent in 2004 and a maximum of 14.07 percent in 1970. in 2020, the percentage was 13.07 percent. based on information from 161 countries, the global average in 2020 is 58.11 percent. 1) although there is a large body of literature on the concept of environmental conditions, particularly in developing countries, many of its aspects remain unexplored, particularly from an iraqi perspective; therefore, the present investigation will focus on environmental conditions to highlight their significance to improve the world's environmental quality and conditions for the future. 2) le t-h et al. (2020) and kim et al. (2020) worked on the financial credits and co2 emission; however, the current study will also work on it with the addition of economic growth, re output, energy import, and industrialization in iraq with a new data set. 3) the model incorporating financial credits, economic growth, re output, energy import, industrialization, and co2 emissions in iraq has not been validated in recent years. 4) muhammad (2019) and abbasi et al. (2021) worked on energy, eg, and co2 emission; however, the current study will also work on it, in addition to the addition of financial credits, re output, energy import, and industrialization in iraq with a new sample set. 5) chen et al. (2019) and sinha et al. (2018) worked on the relationship between re output and environmental degradation. in contrast, using a new data set, the current study will examine the relationship between the addition of financial credits, economic growth, re output, energy import, and industrialization. 6) naimoğlu (2022) and lin and raza (2020) worked on energy imports and co2 emissions. however, the current study will also work on this relationship by adding other variables, such as financial credits, economic growth, re output, and industrialization in iraq, using a new data set. 7) li et al. (2015) and sinha et al. (2018) worked on industrialization and co2 emission. in contrast, using a new data sample, the current study will examine the relationship with adding variables such as financial credits, economic growth, re output, and energy import in iraq. the significance of the present investigation is that 1) the present investigation will highlight the importance of the environment for the future of iraq and the world, 2) the present investigation will add to the literature on environmental conditions in iraq, and 3) the present investigation will also provide the support to ecologically related professionals to review and upgrade policies about the environment to create a safe future for the world. 2. literature review due to the growth in co2 emissions, global environmental degradation is accelerating at an alarming rate. to reduce its effects, the international community is concentrating on financial credits. according to the literature, there is a significant relationship between financial credits and co2 emission. le t-h et al. (2020) examined if financial inclusion, including financial credits, affects co2 emissions in this environment. the research was conducted on 31 asian economies. as a sample, the investigation employed the 10-year data set. the collected information spans the years 2004 through 2014. using pc analysis, the collected material was examined. the research indicated that the increase in co2 emissions in the mailto:bus.sakban@student.uobabylon.edu.iq mailto:bus.mahdi.khaleel@uobabylon.edu.iq mailto:bus.hussein.abbas@uobabylon.edu.iq agbioforum, 24(3), 2022 | 2 fahad, al-mamoori and al-shammari. — the role of financial credits, economic growth, and sustainable energy on the … region appears to result from higher income, energy consumption, industry, urbanization, foreign direct investment, and financial inclusion. it seems that increased economic openness has reduced co2 emissions. kim et al. (2020) studied if financial credits through the finance curse affect co2 emission. the investigation was conducted in developed and developing nations. the investigation utilized the 24-year data set as a sample. the collected data spans the years 1989 through 2013. the collected material was examined using the ardl technique (hamsal et al., 2021). the analysis indicated a strong correlation between financial credits and co2 emissions. the nature of the relationship is favorable. the increase in financial credits results in increased investment in environmentally friendly projects and reduces co2 emissions. in addition, khezri et al. (2021) examined whether there is a correlation between financial development, i.e., financial development, and co2 emissions. the examination was conducted on the 31 economies of asia and the pacific. the investigation utilized the 18-year data set as a sample. the collected data spans the years 2000 through 2018. the collected sample was examined using the spatial durbin model. the analysis indicated that financial development, namely financial credits, had a substantial positive effect on co2 emissions in the selected economies. any nation's prosperity depends on its economic conditions. a nation with a healthy eg rate protects its future generation. several factors affect or are affected by eg, and co2 emission is one of them. muhammad (2019) explored whether there is a correlation between economic growth and co2 emissions in this environment. the examination was conducted on the economies of the middle east and north africa. the investigation utilized the 16-year data set as a sample. the collected information spans the years 2001 to 2017. the collected material was examined using the gmm technique. the results demonstrated a negative relationship between eg and co2 emission. an improvement in eg results in a reduction in co2 emissions. abbasi et al. (2021) investigated the relationship between energy, industrial growth, urbanization, co2 emissions, and eg. the investigation took place in pakistan. the investigation utilized the 50year data set as a sample. the collected information spans the years 1972 to 2018. the collected material was examined using the ardl method. the analysis found that both industrial-added value and energy usage have a favorable effect on eg. therefore, we conclude that co2 emissions positively impact pakistan's economic development. in addition, radmehr et al. (2021) examined the relationship between re usage, co2 emissions, and eg. the examination focused on the economies of the european union. the investigation utilized the 20-year data set as a sample. the collected information spans the years 1995 to 2014. gs2sls was applied to the collected sample. economic development and geographical correlation were found to have a stronger relationship than carbon dioxide (co2) emissions or renewable energy (re) utilization. in addition, there is a reciprocal relationship between eg, carbon emissions, and the utilization of renewable energy. energy is necessary today, as every business and home activity depend on it. the huge quantity of energy products impacts the environment via co2 emissions. chen et al. (2019) evaluated the relationship between re production eg, foreign commerce, and co2 emission in this environment. in china, the investigation was conducted. as a sample, the investigation used the 34-year data set. the collected data spans the years 1980 through 2014. the collected material was analyzed using ardl and other techniques. the results demonstrated the correlation between re production and co2 emission. particularly in china, the growth in re output cuts co2 emissions. likewise, sinha et al. (2018) examined the relationship between re generation and co2 emission. in india, the investigation was conducted. the investigation utilized the 44-year data set as a sample. the collected data spans the years 1971 through 2015. the collected material was examined using the ardl technique. the study results indicate that the long-run elasticity of energy consumption is greater than the short-run elasticity, even though re has been proven to have a significant negative impact on co2 emissions. de souza mendonça et al. (2020) examined the relationship between gdp, population, re production, and co2 emission. the analysis was conducted on the world's 50 largest economies. the investigation utilized the 35year data set as a sample. the collected data spans the years 1990 through 2015. the collected sample was analyzed using a historical regression model. 1) in the selected economies, co2 emissions increase by 0.27 percent for every 1 percent increase in gdp; 2) in all economies, co2 emissions increase by 1.67 percent for every 1 percent increase in population; and 3) the average reduction in co2 emissions caused by a 1 percent increase in re's electrical matrix share is 0.13 percent. developing nations throughout the world import energy to meet their energy needs. this energy import is also related to several additional concerns, such as environmental degradation and eg. in this regard, naimoğlu (2022) examined the relationship between energy imports and co2 emissions. the analysis was conducted on the world's top 10 energy-importing economies. as an example, the investigation utilized the thirty-year data set. the collected data spans the years 1990 through 2019. the collected material was examined using the ardl technique. the analysis found that the ekc theories apply to these economies. moreover, the usage of nuclear energy and the pricing of energy reduces co2 emissions. however, energy imports result in increased co2 emissions. lin and xu (2020) also examined the relationship between energy security and co2 emissions. the investigation took place in pakistan. as a sample, the investigation used the 28-year data set. the collected data spans the years 2012 through 2040. the agbioforum, 24(3), 2022 | 3 fahad, al-mamoori and al-shammari. — the role of financial credits, economic growth, and sustainable energy on the … collected sample was analyzed using the markal framework. the analysis indicated that while total re will increase, the availability of primary energy would decrease only somewhat. the transportation industry and other sectors would consume the most fuel, increasing co2 emissions that may be offset by using renewable energy sources. in addition, rehman et al. (2021) examined the relationship between industrialization, energy imports, economic development, and co2 emission. the investigation took place in pakistan. the investigation utilized the 50-year data set as a sample. the collected data spans the years 1971 through 2019. the collected material was examined using the ardl technique. the investigation's findings demonstrated that industrialization had a favorable effect on co2 emissions. the shifting eg has a detrimental impact on co2 emissions. there are various factors for the global increase in co2 emissions. a quick development in industrialization is one of the key drivers. in this context, li et al. (2015) investigate whether urbanization, industrialization, and co2 emissions are related. the research was conducted on 73 economies. the investigation utilized the 40-year data set as a sample. the collected information spans the years 1971 through 2010. the collected material was examined using the stirpat technique. the analysis results demonstrated that industrialization and co2 emissions are significantly related. a rise in co2 emissions also accompanies increased industrialization. similarly, sinha et al. (2018) demonstrated the connection between industrialization and co2 emission. investigations were conducted in bangladesh. the investigation utilized the 35-year data set as a sample. the collected information spans the years 1975 through 2010. the collected material was examined using the ardl technique. the results demonstrated that industrialization increases co2 emissions, particularly in bangladesh. in addition, mentel et al. (2022) examined the connection between industrialization and co2 emission. the investigation was conducted on the 44 sub-saharan african economies. the investigation utilized the 15-year data set as a sample. the collected data spans the years 2000 through 2015. the collected sample was examined using a gmm estimator. according to the investigation findings, industrialization increases co2 emissions in selected economies, leading to environmental damage. 3. research methods the article examines the impact of financial credits, eg, re output, energy import, and industrialization on co2 emissions in iraq. the research used the secondary data extracted from the wdi from 1991 to 2020. the study equation is given as under: 𝐶𝑂2𝐸𝑡 = 𝛼0 + 𝛽1𝐹𝐶𝑡 + 𝛽2𝐸𝐺𝑡 + 𝛽3𝑅𝐸𝑂𝑖𝑡 + 𝛽4𝐸𝐼𝑡 + 𝛽5𝐼𝑁𝐷𝑡 + 𝑒𝑡 (1) where; co2e = carbon dioxide emissions t = time period fc = financial credits eg = economic growth reo = renewable energy output ei = energy import ind = industrialization the primary variable of the study was the environmental state as measured by co2 emissions (metric tons per capita). in addition, the study employed three predictors, including financial credits measured with domestic credit provided by the financial sector (percentage of gdp), eg measured with gdp growth (annual percentage), and sustainable energy measured with re output (percentage of total output) and energy import (percentage of energy use). the article also utilized the control variable, such as industrialization as measured by industry value added (percent of gdp). these measurable constructions are listed in table 1. table 1: variables with measurements s# variables measurement sources 01 environmental condition co2 emissions (metric tons per capita) wdi 02 financial credits domestic credit provided by the financial sector (% of gdp) wdi 03 economic growth gdp growth (annual percentage) wdi 04 sustainable energy re output (% of total output) wdi energy import (% of energy use) wdi 05 industrialization industry value added (% of gdp) wdi the study employed descriptive statistics to examine the details of the variables, including minimum values, total observations, maximum values, average values, and standard deviations. in addition, the correlation matrix was used to examine the correlation between predictors. in addition, the unit root was verified using the phillips– perron (pp) and augmented dickey–fuller (adf) tests. the equation is as follows: 𝑑(𝑌𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑌𝑡−1 + 𝑑(𝑌𝑡(−1)) + ɛ𝑡 (2) in addition, the research applied the (westerlund et al., 2008) approach to examine the co-integration among variables. the equations are given below: lmφ(i) = tφ̂i (r̂i/σ̂i ) (3) lmτ(i) = φ̂i/se(φ̂i) (4) the equations show �̂�𝒊 that represents the estimate beside standard error, �̂�2 𝑖 that represents the long-run measured variance, 𝜑𝑖 (𝐿) = 1 − ∑ 𝜑𝑖𝑗𝐿𝑗 represents the scalar polynomial with l lag length, and ρi represents the factor loading parameters vector. in addition, the ardl model, which offers the shortand long-run correlation between variables, was utilized in this agbioforum, 24(3), 2022 | 4 fahad, al-mamoori and al-shammari. — the role of financial credits, economic growth, and sustainable energy on the … study. it is the optimal method for determining the link between variables when neither i(0) nor i(1) have a unit root (zaidi et al., 2018). in addition, it controls the impact of autocorrelation and heteroscedasticity on estimations (nazir et al., 2018). the equation is given as follows: ∆𝐶𝑂2𝐸𝑡 = 𝛼0 + ∑𝛿1∆𝐶𝑂2𝐸𝑡−1 + ∑𝛿2∆𝐹𝐶𝑡−1 + ∑𝛿3∆𝐸𝐺𝑡−1 + ∑𝛿4∆𝑅𝐸𝑂𝑡−1 + ∑𝛿5∆𝐸𝐼𝑡−1 + ∑𝛿6∆𝐼𝑁𝐷𝑡−1 + 𝜑1𝐶𝑂2𝐸𝑡−1 + 𝜑2𝐹𝐶𝑡−1 + 𝜑3𝐸𝐺𝑡−1 + 𝜑4𝑅𝐸𝑂𝑡−1 + 𝜑5𝐸𝐼𝑡−1 + 𝜑6𝐼𝑁𝐷𝑡−1 + ɛ𝑡 (5) the research also employed the dardl to examine the relationship between factors. this strategy is created by jordan et al. (2018). this strategy addresses all the drawbacks of the standard ardl paradigm. the equation is given as follows: ∆𝐶𝑂2𝐸𝑡 = 𝛼0 + ∑𝛿1∆𝐶𝑂2𝐸𝑡−1 + ∑𝛿2∆𝐹𝐶𝑡 + ∑𝛿3∆𝐹𝐶𝑡−1 + ∑𝛿4∆𝐸𝐺𝑡 + ∑𝛿5∆𝐸𝐺𝑡−1 + ∑𝛿6∆𝑅𝐸𝑂𝑡 + ∑𝛿7∆𝑅𝐸𝑂𝑡−1 + ∑𝛿8∆𝐸𝐼𝑡 + ∑𝛿9∆𝐸𝐼𝑡−1 + ∑𝛿10∆𝐼𝑁𝐷𝑡 + ∑𝛿11∆𝐼𝑁𝐷𝑡−1 + ɛ𝑡 (6) 4. findings outcomes the study employed descriptive statistics to examine the details of the variables, including minimum values, total observations, maximum values, average values, and standard deviations. the results revealed that the average value of co2e was 11,219 metric tons per capita, while the average value of fc was 31,201 percent, and eg was 9,010 percent. in addition, the results indicated that the average value of reo was 54.091%, the average value of ei was 5.902%, and the average value of ind was 44.720%. table 2 displays these results. table 2: descriptive statistics variable obs mean std. dev. min max co2e 30 11.219 0.732 7.121 14.320 fc 30 31.201 1.201 28.102 39.133 eg 30 9.010 2.493 7.201 13.298 reo 30 54.091 3.731 51.029 61.256 ei 30 5.902 0.860 1.401 9.257 ind 30 44.720 2.776 37.892 47.676 in addition, the correlation matrix was used to examine the correlation between predictors. according to the findings of this study, the financial credits, eg, re output, energy import, and industrialization are negatively correlated with co2 emissions in iraq. table 3 displays these results. table 3: matrix of correlations in addition, the paper utilized the pp and adf tests to validate the unit root. co2e, fc, eg, and ind were shown to be stationary at level, while reo and ei were stationary at first difference. table 4 displays these results. table 4: unit root test adf pp series level first difference level first difference co2e -2.011*** ------2.721*** ----- fc -3.012*** ------3.331*** ----- eg -2.421*** -----2.782*** ----- reo ------5.102*** ------5.902*** ei ------5.423*** ------5.910*** ind -3.631*** ------3.781*** ----- in addition, the technique (westerlund et al., 2008) was utilized to analyze the co-integration of variables. the results indicated that p-values are less than 0.05 and t-values are more significant than 1.96, meeting the standard criterion. these results suggest that co-integration exists. table 5 displays these results. table 5: co-integration test model no shift mean shift regime shift test stat p-value test stat p-value test stat p-value lmτ -3.021 0.000 -4.392 0.000 -5.771 0.000 lmφ -3.328 0.000 -4.901 0.000 -5.891 0.000 the research also employed the dardl to examine the relationship between factors. according to the findings of this study, the financial credits, eg, re output, energy import, and industrialization are negatively correlated with co2 emissions in iraq. these connections are shown in table 6. variables co2e fc eg reo ei ind co2e 1.000 fc -0.673 1.000 eg -0.616 0.382 1.000 reo -0.321 0.733 0.783 1.000 ei -0.736 0.482 0.438 0.330 1.000 ind -0.322 0.734 0.543 0.493 0.544 1.000 agbioforum, 24(3), 2022 | 5 fahad, al-mamoori and al-shammari. — the role of financial credits, economic growth, and sustainable energy on the … table 6: dynamic ardl model variable coefficient t-statistic prob. co2e 4.021*** 5.782 0.000 𝐹𝐶𝑡−1 -3.782*** -6.019 0.000 fc -3.102** -3.102 0.043 𝐸𝐺𝑡−1 -4.392*** -3.223 0.004 eg -3.201*** -4.301 0.002 𝑅𝐸𝑂𝑡−1 -0.676*** -5.888 0.000 reo -1.291** -2.338 0.032 𝐸𝐼𝑡−1 -2.191*** -4.102 0.000 ei -0.887*** -5.201 0.000 𝐼𝑁𝐷𝑡−1 -2.102*** -2.133 0.009 ind -0.891** -3.291 0.002 cons -2.192** -4.201 0.000 r square = 56.201 stimulation = 5000 5. discussions the results demonstrated a negative correlation between financial credits and co2 emissions. these results are consistent with le t-h et al. (2020), who found that using diverse materials, such as plastic, metals, chemicals, etc., in various economic sectors generates smoke, fumes, or harmful wastes. these compounds produce co2 emissions. the availability of financial credits helps businesses to switch to eco-friendly products and halts co2 emissions. these results are also consistent with the findings of lv et al. (2021), who found that even though economic actions create hazardous gases from waste, financial credits enable businesses to adopt effective environmental management and lower co2 emissions. the results demonstrated a negative correlation between eg and co2 emissions. the results are consistent with adedoyin et al. (2020)'s assertion that, even though the increasing frequency of economic practices causes waste and co2 emissions, eg promotes innovative economic strategies that lead to a decrease in waste and, consequently, waste emissions. these conclusions are consistent with lin and raza (2020)'s research. this prior study suggests that when a nation outperforms its competitors on the global market, it has a greater capacity to utilize eco-friendly technical resources and, consequently, regulate co2 emissions, which may be detrimental to the natural environment. the results demonstrated a negative correlation between re output and co2 emissions. these results are consistent with the research of radmehr et al. (2021), which investigates the effectiveness of re technology in reducing co2 emissions. according to the study, mining for energy resources and nuclear energy reactions release greenhouse gases contributing to climate change. the alternate solution, the re output, maintains the lowest co2 emission economic practices. these results are also consistent with the findings of razmjoo et al. (2021), who found that in countries with abundant renewable energy production, the demand for fossil fuels derived from mining and nuclear energy declines. consequently, there is a significant drop in co2 emissions. the results demonstrated a negative relationship between energy imports and co2 emissions. these results are consistent with the findings of zhang et al. (2019), who hypothesize that importing foreign re technologies stimulates domestic enterprises to shift to renewable energy to continue operations. the energy shift reduces carbon dioxide emissions. these results are also consistent with zhang et al. (2019)'s research, which demonstrates that importing energy-efficient technology and re sources reduces reliance on non-re-based economic practices. consequently, there are fewer co2 emissions. the results demonstrated a negative relationship between industrialization and co2 emissions. according to jin et al. (2021)'s research, the industrial revolution brings about changes in technology applicable to economic operations. the eco-friendly economic technologies produce identical results with fewer co2 emissions. these results are consistent with appiah et al. (2021)'s assertion that industrialization promotes innovative organizational practices. the innovativeness enhances the efficiency of the business and decreases the likelihood of co2 emissions. 6. implications as a result of the present study's substantial contribution to literature, scholars might utilize it as a guide for future literary endeavors. the study investigates the environmental effects of financial credits, eg, re output, and energy import, as well as controlling factors such as industrialization. in this study, co2 emissions have been used as a proxy for environmental conditions. in addition, the writers begin analyzing environmental circumstances in iraq as a result of financial credits, eg, re output, and energy imports. the present research also has numerous empirical implications. the research instructs environmental authorities and economics on how to decrease co2 emissions. the study suggests that to reduce co2 emissions, and policymakers must boost financial credit inside the economy. it suggests that governments and economists should focus on raising eg to reduce co2 emissions. the research assists policymakers in formulating measures to prevent environmental deterioration via appropriate financial credits, eg, and renewable energy sources. there is a directive for policymakers mandating that they increase re output. it agbioforum, 24(3), 2022 | 6 fahad, al-mamoori and al-shammari. — the role of financial credits, economic growth, and sustainable energy on the … would reduce carbon dioxide emissions. it is also urged that the importation of renewable, clean, and economical energy should be encouraged, and co2 emissions should be minimized. in addition, the study indicates that governments must effectively control industrialization to reduce co2 emissions and improve environmental quality. 7. conclusion the study aimed to determine the contribution of financial credits, eg, re output, energy import, and industrialization to environmental improvement. iraqi empirical data on financial credits, eg, re output, energy import, industrialization, and co2 emissions were gathered by questionnaire surveys. the results demonstrated a negative relationship between co2 emissions and financial credits, eg, re output, energy import, and industrialization. the results indicated that the availability of financial credits improves the financial situation of businesses and increases their capacity to battle co2 emissions and exercise environmental responsibility. the results showed that when a country is destined to have a higher eg, it engages in inventive development and reduces its co2 emissions. the results suggested that countries proficient in producing considerable quantities of re can mitigate co2 emissions. the study found that a country's ability to import energy enhances its use of clean energy and its co2 mitigation efforts. in addition, the study suggested that efforts for growing industrialization within the country's borders promote economic growth and help reduce co2 emissions. 8. limitations the role of financial credits, eg, re output, and energy import in environmental conditions has lately been examined. numerous aspects can be utilized to improve environmental circumstances, and researchers are expected to investigate them. second, only co2 emission has been discussed as a proxy for environmental conditions in this study. greenhouse gases are superior indicators of environmental quality. therefore, future authors must study greenhouse gases rather than co2 emissions to quantify environmental quality more accurately. references abbasi, k. r., shahbaz, m., jiao, z., & tufail, m. 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zalacca var. amboinensis and their determinants the competitive advantages of salacca zalacca var. amboinensis and their determinants i made tamba* universitas mahasaraswati denpasar, bali, indonesia email: itamba17@unmas.ac.id the strengthening of trade liberalization provides new opportunities and new challenges that farmers and governments must face in the supply chain of indonesia agricultural commodities in international markets. salacca zalacca var. amboinensis is one of the five types of fruit designated as the superior fruit of bali region, which is positioned to be a source of regional and national economic leverage. market liberalization could lead to significant losses if farmers are unable to make a profit during the main harvest season and their products lack competitiveness. in order to respond to these conditions, this research was conducted with the aim of analyzing (1) the level of innovation in salacca zalacca var. amboinensis farming and (2) the competitive advantage of salacca zalacca var. amboinensis and the factors that influence it. the research was conducted in centers of salacca zalacca var. amboinensis production in the province of bali, with a total of 139 respondents among salacca zalacca var. amboinensis farmers. this study employs a policy analysis matrix (pam) approach with private cost ratio (pcr) indicators is used to analyze the competitive advantage of salacca zalacca var. amboinensis. the results showed that, cumulatively, the innovation level of salacca zalacca var. amboinensis was in the low category. salacca zalacca var. amboinensis has a competitive advantage in all strata of land area and also in all harvest seasons, so it has a great opportunity to be used as the superior export fruit and classic economic crops that remain competitive for the bali region. to summarize, the competitive edge of salacca zalacca var. amboinensis relies on the level of innovation in cultivating, post-harvesting, and marketing salacca zalacca var. amboinensis. keywords: competitive advantage, cultivation, determinant, policy analysis matrix, salacca zalacca var. amboinensis. 1. introduction globalization and market liberalization create very tight competition for commodities sold in international markets. indonesia, as an agriculture-based country, has several superior commodities that can compete in the international market. salacca zalacca var. amboinensis is an indigenous bali province commodity which was developed as one of the export fruit commodities and the modern market due to 2019 bali food crops, horticulture, and plantation development master plan. salacca zalacca var. amboinensis is a longestablished traditional plant in bali. salacca zalacca var. amboinensis was officially released by the minister of agriculture of the republic of indonesia through kepmentan (decrees and regulations of the minister of agriculture) no. 5844/kpts/tp.240/7/1994. it belongs to the category of aged plants, which are plants that are able to be passed down through the generations. salacca zalacca var. amboinensis has a lengthy history and can therefore be considered an ancestor investment legacy that will benefit present and future generations. salacca zalacca var. amboinensis's investment heritage must be preserved, and this can only be done with the next generation's dedication to constant creativity and innovation—which will help salacca zalacca var. amboinensis become a staple crop that can compete globally. there are six districts in bali (karangasem, bangli, tabanan, gianyar, badung, and buleleng) whose people have developed salacca zalacca var. amboinensis as a commercial commodity. karangasem is a district that is considered a pioneer in the development of salacca zalacca var. amboinensis. there are at least 13 types of salacca zalacca cultivars that have been identified in the province of bali, with the superior variety being salacca zalacca var. amboinensis (sumantra & pura, 2015). the factual conditions show that salacca zalacca var. amboinensis is a seasonal fruit. salacca zalacca var. amboinensis production is polarized into two seasons, namely the main harvest season (january-march) and the low harvest season (july-september). during the main harvest season, salacca zalacca var. amboinensis production is abundant, while during the low harvest season, the production is low. this condition has implications for the fall in the price of salacca zalacca var. amboinensis during the main harvest season. a breakthrough in cultivation innovation is needed so that salacca zalacca var. amboinensis can bear fruit throughout the season and that production is also well distributed throughout the year. the abundance of salacca zalacca var. amboinensis production during the main harvest season is not able to provide added value to farmers, and ironically, this abundance of production actually burdens farmers with additional labor costs for harvesting and transporting production. so far, there has been no breakthrough that can become a dynamic epicenter to transform the dark side of the problems that surround salacca zalacca var. amboinensis farming during the main harvest season into a sparkling beacon of luck for salacca zalacca var. amboinensis farmers and their families. salacca zalacca var. amboinensis farmers mailto:itamba17@unmas.ac.id agbioforum, 25(3), 2023 | 21 tamba the competitive advantages of salacca zalacca var. amboinensis and their determinants always carry a heavy burden during the main harvest season without meaningful incentives. in the future, according to the master plan, salacca zalacca var. amboinensis is projected to become an export commodity so that the abundance of production, especially during the main harvest season, can be optimally absorbed and salacca zalacca var. amboinensis farmers can receive significant benefits. on the side of an agrotourism perspective, it is proven that salacca zalacca farming has a competitive advantage (sucandrawati & murdani, 2020). however, in order to become an export commodity and compete globally in two seasons of cultivation, the competitive advantage of salacca zalacca var. amboinensis needs to be improved on an ongoing basis. comparative and competitive advantage is one of the main keys to the development of farming to deal with globalization and market liberalization. to strengthen salacca zalacca var. amboinensis competitive advantage, farmers must hack themselves to innovate, starting with innovation in aspects of cultivation, post-harvest innovation, and marketing innovation, because according to çeti̇ntürk, adıigüzel, & demi̇r (2016) and ueasangkomsate, suthiwartnarueput, & chaveesuk (2018), innovation is a source of competitive advantage. there have been many research results related to the performance of salacca zalacca var. amboinensis farming, such as adijaya & yasa (2015), sukewijaya, rai, & mahendra (2009), putri, susrusa, & arisenna (2020), rai (2018) and sumantra & pura (2015) but there is no specific research related to the competitive advantage of salacca zalacca var. amboinensis farming and its determinants. therefore, it is very urgent to carry out a comprehensive study of farming innovation and the competitive advantage of salacca zalacca var. amboinensis, which is expected to be used as an indicator related to the competitiveness of this commodity as an export product for the bali region. in addition, it is also important to analyze the factors that influence the competitive advantage of salacca zalacca var. amboinensis to be used as a source of information in making policy interventions, especially to strengthen the competitive advantage of salacca zalacca var. amboinensis. there is great hope going forward that salacca zalacca var. amboinensis will have the opportunity to be exported to foreign countries because, according to zuhdi, rahmadona, & maulana (2021), indonesian agricultural commodities have a fairly good export role. this can be an innovative solution to expand the distribution of salacca zalacca var. amboinensis in order to obtain competitive prices. the objectives of this research are (1) to analyze the innovation level of salacca zalacca var. amboinensis farming and (2) to analyze the competitive advantage of salacca zalacca var. amboinensis and the factors that influence it. 2. literature review tu & wu (2021) stated that competitive advantage must be built on environmentally friendly production based on stakeholder calls and must also comply with environmental regulations. furthermore, bintara et al. (2023) concluded from their literature review that companies that operate based on environmentally friendly innovation can achieve competitive advantages, and their business is sustainable. furthermore, maroušek, strunecký, & maroušková (2023) offer producers to comply with circular economy principles to reduce production costs so as to increase their competitiveness. according to prasetyo & dzaki (2020), productivity is the key to competitiveness. azeem et al. (2021) found that organizational innovation is the main driver for achieving competitive advantage, while daengs et al. (2020) stated that through efforts to improve product quality, competitive advantage can be realized. innovation influences competitive advantage (bulankulama & khatibi, 2014; çeti̇ntürk et al., 2016; dlamini, kirsten, & masuku, 2014; kraja & osmani, 2013; suryani & claudya, 2021; ueasangkomsate et al., 2018). culture contributes to competitive advantage (odhiambo, kibera, & musyoka, 2015; violinda & jian, 2016). continuous innovation can increase competitive advantage. hermundsdottir & aspelund (2021) and hossain, kannan, & raman nair (2021) stated that through active innovation, competitive advantage can be maintained. grimstad & burgess (2014) stated that sustainable environmental actions are correlated with competitive advantage. unique competitive advantages provide great opportunities to obtain higher profits (dziwornu & raymond, 2014), and of course, the company's management strategy also contributes to the achievement of a competitive advantage (farida & setiawan, 2022; ismail, domil, & isa, 2014). furthermore. kryscynski, coff, & campbell (2021) propose that company-specific incentives that provide more benefits to workers are able to facilitate human capital-based competitive advantages. according to sachitra & chong (2016), government intervention programs are very important for developing the competitive advantage of the agribusiness sector. apart from the cultivation aspect, the business model also needs to be updated to strengthen its competitive advantage (dudin et al., 2015). in terms of marketing innovation, competitive advantage also comes from market characteristics and the marketing ecosystem (carbone et al., 2020; zhang & watson iv, 2020). 3. research methods the study was conducted at salacca zalacca var. amboinensis production hubs in the six bali province regencies of karangasem, bangli, gianyar, badung, tabanan, and buleleng from march to june of 2022. research activities was conducted through survey-based method to productive salacca zalacca var. amboinensis farmers. there were both quantitative and qualitative data collected for this study. the qualitative data contains information on the harvest season, cultivation technique innovations, post-harvest innovations, and marketing innovations. the quantitative data includes information on salacca zalacca var. amboinensis production, production costs, price, and the number of salacca zalacca var. amboinensis plants. primary and secondary sources were used to gather the data for this investigation. primary data was collected directly from respondents using a list of agbioforum, 25(3), 2023 | 22 tamba the competitive advantages of salacca zalacca var. amboinensis and their determinants questions that had been prepared beforehand, while secondary data was collected from a number of online sources. primary data comprises salacca zalacca var. amboinensis production data, production costs, price data, the quantity of salacca zalacca var. amboinensis trees, harvest season data, cultivation technique innovations, post-harvest innovations, and marketing innovations. the production of salacca zalacca var. amboinensis in every bali district is included in secondary data. the information gathered through surveys was afterwards collated and examined. salacca zalacca var. amboinensis was descriptively examined for its amount of originality. salacca zalacca var. amboinensis cultivation, post-harvest innovation, and marketing innovation are all measured on a scale of five, with a 16% class interval between the highest and lowest levels of innovation. the innovation level groups are shown in table 2 based on these class intervals. monke & pearson (1989) suggest using the private cost ratio (pcr) model to examine the competitive advantage of salacca zalacca var. amboinensis (table 1). table 1: policy analysis matrix. costs return tradable inputs domestic factors benefit private prices a b c d social prices e f g h divergences i j k l 𝑷𝒓𝒊𝒗𝒂𝒕𝒆 𝑪𝒐𝒔𝒕 𝑹𝒂𝒕𝒊𝒐 (𝑷𝑪𝑹) = 𝐶 (𝐴 − 𝐵) 3.1 remarks pcr = private cost ratio a = return at the private price level b = tradable input at private price level c = domestic factor at the private price level table 2: innovation level category. no range of achievement score percentages in relation to maximum score (%) innovation level category 1 20% 36% very low 2 >36% 52% low 3 >52% 68% sufficient 4 >68% 84% high 5 >84% 100% very high multiple linear regression is used to investigate the variables affecting salacca zalacca var. amboinensis's competitive advantage, and the following model is used: 𝒀 = 𝛽0 + 𝛽1𝑋1 + 𝛽2𝑋2 + 𝛽3𝑋3 + 𝜀 4. remarks y = competitive advantages β_0 = intercept β_1, β_2, β_3= regression coefficient x_1 = the level of innovation in the cultivation of salacca zalacca var. amboinensis x_2 = post-harvest innovation level of salacca zalacca var. amboinensis x_3 = level of marketing innovation of salacca zalacca var. amboinensis 4.1 variables and factor measurement variables, indicators, and their measurements are presented in table 3. table 3: variables, indicators, and measurements. variable indicator measurement scale the level of innovation in the cultivation of salacca zalacca var. amboinensisi a series of salacca zalacca var. amboinensis cultivation innovations carried out by farmers, which include: ordinal 1. fertilization innovation 2. pruning innovation 3. fruit thinning innovation 4. innovation in pest and disease control 5. land conservation innovation post-harvest innovation level of salacca zalacca var. amboinensis a series of post-harvest innovations made by farmers: ordinal 1. innovative grading 2. innovation in harvesting procedures 3. storage innovation 4. innovation extends shelf life. 5. product processing innovation the level of innovation in salacca zalacca var. amboinensis marketing a series of salacca zalacca var. amboinensis marketing innovations by farmers ordinal 1. product innovation 2. marketing channel innovation 3. marketing technology innovation 4. branding innovation 5. promotion innovation competitive advantage private cost ratio ratio 5. research findings 5.1 the innovation level of salacca zalacca var. amboinensis farming in order to face the challenges of phenomenal global competition, some salacca zalacca var. amboinensis farmers have responded by being creative and innovative in the aspects of cultivation, post-harvest, and marketing. through this activity, the motivation to innovate is a function of interests due to the level of innovation achieved in each aspect and between farmers is very diverse. farmers who have relatively greater interests are indicated to have relatively higher motivation to innovate. there are indications that some farmers are oriented toward innovation in the cultivation aspect and pay less attention to innovation in the post-harvest and marketing aspects. agbioforum, 25(3), 2023 | 23 tamba the competitive advantages of salacca zalacca var. amboinensis and their determinants 5.2 innovation of salacca zalacca var. amboinensis cultivation in the field of cultivation, most of the salacca zalacca var. amboinensis farmers have made innovations, even with varying intensities. the series of innovations that have been carried out include fertilization innovations, leaf midrib pruning innovations, fruit thinning innovations, pest and disease control innovations, land conservation innovations, and garden environmental hygiene. the average percentage of farmers achieving the innovation score for salacca zalacca var. amboinensis cultivation is presented in table 4, and the distribution of farmers according to their level of innovation in the field of salacca zalacca var. amboinensis cultivation is presented in table 5. table 4: the average percentage of achieving a score on the level of innovation in salacca zalacca var. amboinensis cultivation. no innovation in cultivation achieved score (%) category 1 fertilization innovation 62.30 sufficient 2 leaf sheath pruning innovation 78.13 high 3 fruit thinning innovation 40.86 low 4 pest and disease control innovations 36.40 low 5 land conservation innovation and garden environmental cleanliness 66.33 sufficient average % achievement score 56.54 sufficient table 5: distribution of farmers in salacca zalacca var. amboinensis farming according to their level of innovation. no innovation level of cultivation total respondent percentage (%) 1 very low 65 46.76 2 low 10 7.19 3 sufficient 0 0.00 4 high 59 42.45 5 very high 5 3.60 total 139 100.00 the average percentage of achieving a score on the innovation level of zalacca cultivation was 56.54%, which was in the sufficient category. the percentage of achieving the score on the pruning aspect of zalacca leaf sheaths turned out to be the highest with a score of 78.13%, and the lowest was in the innovation aspect of pest and disease control with a score of 36.40%. the achievement of the second-highest score was found in the aspects of land conservation innovation and garden cleanliness, with a score of 66.33%, which is in the sufficient category. the innovative land conservation action carried out by some farmers is making rakes between the rows of zalacca plants. for land conservation, innovation, and environmental cleanliness, some farmers do it mechanically and regularly. the environmental atmosphere in most of the zalacca farms was observed to be less clean, but there were several salacca zalacca var. amboinensis farms that were observed to be very charming. controlling weeds and pruning leaf midribs, which are carried out regularly, create a healthy and comfortable environment, thus providing multiple benefits to farmers, which then leads to strengthening the bargaining position of farmers and traders in marketing their zalacca fruit. these farmers have been able to maintain the harmony of conservation, exploration, and exploitation of the resources they have. fertilization innovation occupies the third position with a percentage of achieving a score of 62.30%, which is in the sufficient category. most of the farmers have made fertilization innovations through composting the salacca zalacca var. amboinensis leaf midribs, even though there is a high disparity in the composting process. farmers who are advanced and adaptive to technological developments have composted regularly, using microorganisms as activators. composting is carried out on rakes made between rows of zalacca plants, and this is used as an instrument for land conservation. the level of innovation in salacca zalacca var. amboinensis cultivation is polarized into two poles, namely, very low and high, but most are in the very low category. this shows that there are still many farmers who are not aware of the importance of cultivation innovation to increase the productivity of salacca zalacca var. amboinensis. when farmers just sit idly by and don't care about the development of cultivation technology innovations, the productivity of their zalacca farming tends to stagnate and even decrease. in the future, more massive dissemination of cultivation technology innovations is needed, accompanied by visiting activities for advanced salacca zalacca var. amboinensis farming, so that farmers are willing and able to adopt innovations for salacca zalacca var. amboinensis cultivation. farmers should be disciplined about innovating in the field of cultivation by applying effective cultivation methods to increase production. keeley et al. (2013) stated that innovating does not require specific requirements so that it can be done by anyone. all salacca zalacca var. amboinensis farmers have the same opportunity to innovate, including those with narrow land. the factual evidence demonstrates that the typical characteristics of agricultural products, including salacca zalacca var. amboinensis, are easily damaged, thus demanding the creation of sustainable innovations. the stagnation of innovation is a limiting factor for salacca zalacca var. amboinensis commodities to penetrate the export market. exporters have exported salacca zalacca var. amboinensis to several countries, but the problems that arise are related to the low shelf life of salacca zalacca var. amboinensis. in response to this, post-harvest innovation is the right choice. unfortunately, only a few farmers realize the importance of post-harvest innovation to increase the competitive advantage of salacca zalacca var. amboinensis (table 6). table 6: the average percentage of achieving a score on the level of innovation of post harvest. no post-harvest innovations achieved score (%) category 1 innovation in harvesting procedures 74.53 high 2 innovative grading 36.10 low 3 storage innovation 23.74 very low 4 innovation extends shelf life. 20.43 very low 5 product processing innovation 53.53 sufficient average % achievement score 41.70 low the achievement of the highest post-harvest innovation level agbioforum, 25(3), 2023 | 24 tamba the competitive advantages of salacca zalacca var. amboinensis and their determinants score is the innovation level of harvesting procedures, and the second order is the level of product processing innovation, with a percentage of achieving scores of 74.53% (high category) and 53.53% (sufficient category). the achievement with the lowest percentage score is the innovation of extending the shelf life, and the second lowest is the innovation of storage, with scores of 20.43% and 23.74, respectively, which are in the very low category. the average percentage of companies achieving the innovation level score after the salacca zalacca var. amboinensis harvest was 41.70%, which is in the low category. this fact shows that there is a big problem with shelf life that requires the presence of innovation. keeley et al. (2013) provide solutions for executives to focus on innovating on complex issues that have far-reaching impacts. in line with this, farmers should focus on innovating to extend the shelf life because, with a relatively longer shelf life, they will be able to penetrate a wider export market. storage innovations and improvements to extend shelf life are actually an absolute requirement to keep salacca zalacca var. amboinensis fresh for consumption for a relatively long period of time. this innovation is becoming increasingly important in order to be able to deliver salacca zalacca var. amboinensis to consumers abroad, which requires a relatively longer time. when storage innovations and innovations to extend shelf-life are not yet available, the opportunity to distribute salacca zalacca var. amboinensis overseas is relatively small. farmers personally should realize how important it is to carry out technological innovations to extend the shelf-life of salacca zalacca var. amboinensis until it is suitable for export. research and testing of technology for extending shelf-life must be carried out on an ongoing basis through collaboration with multi-party enablers. however, in fact, there are no farmers who have reached this level, as evidenced by the results of this study, and most farmers are in the low category in terms of post-harvest innovation level aspects (table 7). unfortunately, only a handful of respondent farmers are in the high and very high categories on the aspect of post-harvest innovation. table 7: distribution of farmers according to their level of innovation in the post-harvest field. no level of innovation of postharvest total respondent percentage (%) 1 very low 75 53.96 2 low 42 30.22 3 sufficient 16 11.51 4 high 5 3.60 5 very high 1 0.71 total 139 100.00 a commodity can be said to be a superior commodity if it has strong demand, both at home and abroad. the demand for commodities can strengthen if the production of these commodities is well distributed in the market. to deliver a commodity so that it is well distributed in the market, continuous marketing innovation is needed. the marketing innovations studied in this study include product innovation, marketing channel innovation, marketing technology innovation, branding innovation, and promotion innovation. the average percentage of achieving a score of salacca zalacca var. amboinensis marketing innovation level was 31.91%, which was in the very low category (table 8). table 8: the average percentage of achieving a score on the marketing innovation level no marketing innovation achieved score (%) category 1 product innovation 45.76 low 2 marketing channel innovation 31.65 very low 3 network innovation (partnership) 27.48 very low 4 branding innovation 23.45 very low 5 promotion innovation 30.94 very low average % achievement score 31.91 very low aspects of salacca zalacca var. amboinensis marketing innovation are in the low and very low categories. this indicates that most of the salacca zalacca var. amboinensis farmers have not carried out marketing innovations because they only depend on the wholesalers. it is as if there is a close emotional and cultural relationship between the farmers and the wholesalers, so they do not divert their sales of zalacca to other buyers. in the future, it is hoped that more and more farmers will adopt marketing innovations so that they have more alternative marketing channels and can obtain more competitive selling prices. keeley et al. (2013) emphasized that manufacturers should not only focus on product innovation but also on network or partnership innovation. this is very important to do in order to expand product distribution so that it is more readily absorbed by customers. it turns out that only a handful of farmers have carried out marketing innovations, and they have enjoyed the benefits of their efforts to innovate in marketing salacca zalacca var. amboinensis. the five aspects of marketing innovation have been well implemented so that the zalacca production is fully absorbed by the market at competitive prices. this farmer did not experience any obstacles in marketing his zalacca fruit during the main harvest season, while the other farmers were always familiar with the problem of the price of zalacca fruit during the main harvest season. most of the farmers (65.47%) are in the very low category, and as many as 17.99% are in the low category in marketing innovation (table 9). farmers in this category do not have partnerships in marketing their zalacca, do not have alternative marketing channels, and do not carry out promotions. it is not surprising, then, that they always get low prices during the main harvest season. farmers should not only hope to get an abundance of marketing innovations from other parties but also be proactive in creating and innovating to solve marketing problems for salacca zalacca var. amboinensis especially during the main harvest season. table 9: distribution of farmers according to their level of marketing innovation. no level of innovation in marketing total respondent percentage (%) 1 very low 91 65.47 2 low 25 17.99 3 sufficient 20 1.39 4 high 2 1.44 5 very high 1 0.71 total 139 100 agbioforum, 25(3), 2023 | 25 tamba the competitive advantages of salacca zalacca var. amboinensis and their determinants cumulatively, the average level of salacca zalacca var. amboinensis innovation is in the low category, with a score achievement percentage of 39.29% of the maximum score. this condition indicates that most farmers do not yet have the awareness to simultaneously innovate in order to obtain significant benefits from salacca zalacca var. amboinensis farming. most of the farmers only partially innovate in the aspects of cultivation and put aside innovations in the postharvest and marketing aspects. even more tragic are the farmers who do nothing to innovate, even though innovation is the dominant source of competitive advantage. 5.3 competitive advantage of salacca zalacca var. amboinensis according to prasetyo & dzaki (2020) productivity is the key to competitiveness, so the productivity of salacca zalacca var. amboinensis needs to be described to clarify competitive advantage achievements. in general, salacca zalacca var. amboinensis farmers already have production data for their salacca farming business which is divided into two main parts, namely the productivity of the main harvest season and the low harvest season. naturally, the average production per tree of salacca zalacca var. amboinensis during the main harvest season is greater than the low harvest season. in terms of strata of land area, productivity of salacca zalacca var. amboinensis on the strata of land area >1 ha is highest during the main harvest season and the lowest productivity is on the stratum <0.5 ha during the low harvest season (table 10). the results of statistical tests show that the productivity of salacca zalacca var. amboinensis is significantly different between strata of land area. it is proven that strata of land area correlate with productivity gains of salacca zalacca var. amboinensis. the relatively low productivity of salacca zalacca var. amboinensis in the strata of land area <0.5 ha indicates that there is poor cultivation management, moreover the recognition that some respondent farmers only come to their zalacca farming when the zalacca bears fruit. the zalacca plant receives almost zero touch of maintenance, so it is not surprising that the productivity gains are very low. of course, the productivity that is achieved with a touch of minimal maintenance is only a gift from nature as a result of the suitability of the agroclimate and the support of endowment factors. table 10: productivity of salacca zalacca var. amboinensis according to strata of land area and harvest season. productivity (kg/tree) harvest season main harvest season low harvest season min average max sd min average max sd land area strata <0,5 1.50 2.26 3.00 0.33 0.50 0.98 1.00 0.08 0,5 1 2.50 2.89 3.00 0.21 0.75 1.00 1.25 0.06 >1 3.00 3.12 3.50 0.22 0.75 1.01 1.50 0.11 <0,5 1.50 2.26 3.00 0.33 0.50 0.98 1.00 0.08 0,5 1 2.50 2.89 3.00 0.21 0.75 1.00 1.25 0.06 specifically, there is an acknowledgment from farmers who manage salacca zalacca var. amboinensis farming with a stratum of land area <0.25 ha that states that they only come to their zalacca gardens when the zalacca plants bear fruit. they make salacca zalacca var. amboinensis farming a side job by giving a minimal touch of maintenance to their zalacca plants. it is similar with sukewijaya et al. (2009) that state zalacca plants really need a touch of more intensive maintenance, including weeding, fertilizing, irrigation, plant protection, and fruit thinning. weeding is very important so that weeds do not become competitors in various aspects, especially in the utilization of nutrients and space to grow. pruning the leaf sheaths also needs to be done regularly so that the zalacca plants do not have insignificant sheath loads. the availability of nutrients for salacca zalacca var. amboinensis plants must be conditioned in a sustainable manner through fertilization activities so that productivity is maintained. salacca zalacca var. amboinensis fruit is very popular with squirrels and rats, so a touch of pest control is very important so that yield losses can be suppressed. this is different from the progress of farmers who manage salacca zalacca var. amboinensis farming with strata of land area >0.5 ha. most of them make zalacca farming their main job. the maintenance touch given to the salacca zalacca var. amboinensis plants is relatively more intensive, starting with weeding, pest and disease control, frond pruning, frond composting, fertilizing, and fruit thinning. it has been proven that the intensity of the maintenance given is responded to very well by the salacca zalacca var. amboinensis plants, with relatively higher productivity gains during the main harvest season and low harvest. farmers' good practices on strata of land area >0.5 ha should be used as an example in managing salacca zalacca var. amboinensis farming, especially for farmers who have strata of zalacca land area <0.25 ha. salacca zalacca var. amboinensis plants should be given a touch of adequate maintenance so that productivity gains are higher. well-organized salacca zalacca var. amboinensis farming can be used as a laboratory for zalacca observers and zalacca farmers, as well as a trade mark that strengthens the bargaining position of farmers towards buyers. in terms of the harvest season, the average productivity of salacca zalacca var. amboinensis during the main harvest season reaches 2.67 kg/tree, and during the low harvest season, the average productivity reaches 0.99 kg/tree. the coefficient of variability in the productivity of salacca zalacca var. amboinensis during the main harvest season is 16.51% and 7.98% in the low harvest season, which means that the productivity of salacca zalacca var. amboinensis fruit during the main harvest season is relatively more heterogeneous. the test results with the ttest show that the average productivity of salacca zalacca var. amboinensis during the main harvest season is greater agbioforum, 25(3), 2023 | 26 tamba the competitive advantages of salacca zalacca var. amboinensis and their determinants than the low harvest season. rai (2018) stated that during the main harvest season, zalacca production reaches 70%, while during the low harvest season it is only 20%. on the other hand, pondoh zalacca, which is a competitor of salacca zalacca var. amboinensis, is able to produce throughout the year. if compared with pondoh zalacca, the productivity of salacca zalacca var. amboinensis is relatively lower. this indicates that salacca zalacca var. amboinensis has lower competitiveness because, according to prasetyo & dzaki (2020), productivity is the key to competitiveness. such conditions are a challenge for farmers to continue to innovate so that salacca zalacca var. amboinensis can bear fruit outside the polarization of the two harvest seasons and that productivity increases. the private cost ratio (pcr) indicator is used to analyze the competitive advantage of salacca zalacca var. amboinensis. the information base of which is derived from the policy analysis matrix. the competitive advantage of salacca zalacca var. amboinensis is relatively diverse (table 11). in terms of land area strata, the average competitive advantage of salacca zalacca var. amboinensis in the land area stratum >1 ha is the highest during the low harvest season, and the lowest competitive advantage is in the land area strata <0.5 ha during the main harvest season (table 10). the results of statistical tests show that the competitive advantage of salacca zalacca var. amboinensis is significantly different between strata of land area. this is in line with the productivity of salacca zalacca var. amboinensis, which also differs between strata of land area. however, all strata of land are capable of producing salacca zalacca var. amboinensis, which has a competitive advantage. table 11: the competitive advantage of salacca zalacca var. amboinensis according to the strata of land area and harvest season. private cost ratio (pcr) harvest season main harvest season low harvest season min average max sd min average max sd land area strata <0.5 0.19 0.32 0.66 0.11 0.19 0.23 0.55 0.06 0.5 – 1 0.09 0.12 0.17 0.02 0.11 0.15 0.23 0.02 >1 0.06 0.09 0.10 0.01 0.06 0.09 0.13 0.01 from the point of view of the main harvest season, the average competitive advantage of salacca zalacca var. amboinensis during the main harvest season reaches 0.20, which means that to save one unit of foreign exchange at the private price level, it requires the sacrifice of 0.20 units of domestic resources. during the low harvest season, the average competitive advantage of the salacca zalacca var. amboinensis reaches 0.17, which means that to save one unit of foreign exchange at the private price level, it requires the sacrifice of 0.17 units of domestic resources. it can be seen visually that the competitive advantage of salacca zalacca var. amboinensis during the low harvest season is stronger than the main harvest season, but the test results with the t-test show that the average competitive advantage of salacca zalacca var. amboinensis during the low harvest season is not different from the main harvest season. this means that the competitive advantage of salacca zalacca var. amboinensis is related to the harvest season. the results of the analysis show that salacca zalacca var. amboinensis has a competitive advantage throughout the season. the coefficient of diversity of the competitive advantage of salacca zalacca var. amboinensis during the main harvest season is relatively higher compared to the low harvest season, which means that the achievement of the competitive advantage of salacca zalacca var. amboinensis during the main harvest season is riskier compared to the low harvest season. government intervention programs are very important for developing the competitive advantage of the agribusiness sector (sachitra & chong, 2016). therefore, the law enforcement of bali governor regulation no. 99 of 2018 concerning the marketing and utilization of balinese agricultural, fishery, and local industry products is urgently needed to be realized so that local markets (traditional markets, modern markets, hotels, and restaurants) are able to provide greater absorption, which in turn strengthens the bargaining position of salacca zalacca var. amboinensis farmers. salacca zalacca var. amboinensis farmers are challenged to have forensic skills to carry out early detection of sources of competitive advantage for their products to be packaged neatly and sent to prospective buyers. unique competitive advantages provide great opportunities to obtain higher profits (dziwornu & raymond, 2014), and of course the company's management strategy also contributes to the achievement of a competitive advantage (ismail et al., 2014). qualitatively, salacca zalacca var. amboinensis was identified as having a number of competitive advantages, namely: (1) sweet taste; (2) soft fruit structure; (3) thick fruit flesh; (4) rich fruit color; and (5) multi-use. all these aspects of competitive advantage will become increasingly attractive attributes if there is a touch of continuous technological innovation. farmers should cultivate innovation in managing their zalacca farming because culture contributes to competitive advantage (odhiambo et al., 2015; violinda & jian, 2016). it is the obligation of farmers to cultivate the process of controlling the flow of innovation so that they are able to create significant added value that has a positive impact on strengthening their competitive advantage. in addition, assistance from competent parties is needed so that zalacca farmers as a whole are able to respond and adapt to developments in technological innovation and then rise together to seize economic benefits. in the future, sustainable hexahelic synergistic collaboration will be the key to success in promoting zalacca farmers to a more prestigious level and allowing them to reap the sweet benefits created, including those from the endowment factor award. agbioforum, 25(3), 2023 | 27 tamba the competitive advantages of salacca zalacca var. amboinensis and their determinants 5.4 salacca zalacca var. amboinensis's competitive advantage: factors it is very urgent to identify sources of competitive advantage for salacca zalacca var. amboinensis to enable farmers to formulate strategies to increase their competitive advantage. based on the literacy of the sources of competitive advantage, farmers have a great opportunity to increase the economic value of salacca zalacca var. amboinensis. at a certain level, the competitive advantage of salacca zalacca var. amboinensis does not just come; it needs to be conditioned through a combination of technological innovations that are compatible and synergistic with the support of endowment factors. a number of factors are thought to influence the competitive advantage of salacca zalacca var. amboinensis, namely: (1) the level of technological innovation of zalacca cultivation; (2) the level of post-harvest technological innovation of zalacca; and (3) the level of marketing innovation of salacca zalacca var. amboinensis. the results of the analysis of variance show that together all independent factors influence the dependent factor (competitive advantage), with a coefficient of determination of 62.5% (table 12). this coefficient determination means that 62.5% of the variation in the dependent factor can be explained jointly by independent factors, and the remaining 37.5% is explained by other factors not included in the model. table 12: multiple linear regression analysis. factors regression coefficient p-value constant 0.403 0.00 cultivation innovation level 0.012 0.00 post-harvest innovation level 0.012 0.00 marketing innovation level 0.009 0.02 r2 = 62,5% partially, the innovation level of salacca zalacca var. amboinensis cultivation, the post-harvest innovation level, and the level of marketing innovation have a significant effect on the competitive advantage of salacca zalacca var. amboinensis. the findings of this study are in line with the results of a study by çeti̇ntürk et al. (2016), dlamini et al. (2014), bulankulama & khatibi (2014), kraja & osmani (2013), suryani & claudya (2021) and ueasangkomsate et al. (2018) that found that innovation affects competitive advantage. for salacca zalacca var. amboinensis farmers, continuous improvement in aspects of cultivation and marketing is a must, so that they are able to quickly respond to the dynamics of consumer preferences. without adapting to innovation, it will be left behind by its competitors. this is confirmed by hermundsdottir & aspelund (2021), which state that continuous innovation can increase competitive advantage. regular pruning activity in salacca zalacca var. amboinensis farming, making very tidy and controlled farming with an environmental sanitation standpoint. such conditions become an instrument for mitigating pest attacks, especially squirrels and rats, which can be significantly suppressed so that the average productivity of salacca zalacca var. amboinensis is relatively high. apart from the cultivation aspect, the business model also needs to be updated to strengthen its competitive advantage (dudin et al., 2015). in terms of marketing innovation, competitive advantage also comes from market characteristics and the marketing ecosystem (carbone et al., 2020; zhang & watson iv, 2020). most of the respondent farmers have innovated to fertilize their salacca zalacca var. amboinensis plants by using compost. farmers really understand that compost has advantages compared to inorganic fertilizers because it can improve the physical, chemical, and biological properties of the soil. the actions of farmers who innovate by using compost in the maintenance of salacca zalacca var. amboinensis plants can be categorized as environmentally sustainable actions. the results of this study are in line with the findings of grimstad & burgess (2014), which show that sustainable environmental actions are correlated with competitive advantage. in addition, the results of leonidou et al. (2015) found that product-related areas have an effect on competitive advantage. however, kwarteng, dadzie, & famiyeh (2016) found that environmental sustainability had no impact on corporate image. unlike the results of kwarteng et al. (2016), the results of this study indicate that environmental sustainability strengthens the bargaining position of farmers. several farmers were able to market their salacca zalacca var. amboinensis fruit in the modern market even after the buyer (from the modern market) made a visitation to the location of their zalacca farming. salacca zalacca var. amboinensis cultivation with a conservation system was able to attract modern market managers to buy the produced salacca zalacca var. amboinensis. 6. conclusions the salacca zalacca var. amboinensis harvest season is polarized into two seasons, namely the main harvest season and the low harvest season. salacca zalacca var. amboinensis productivity differs between the main and low harvest seasons and between strata of land area. cumulatively, the innovation level of salacca zalacca var. amboinensis farming is in the low category. salacca zalacca var. amboinensis has a competitive advantage in all strata of land area and in all harvest seasons. taken together, all the independent variables are able to explain the variation of the dependent variable by 62.5%. simultaneously and partially, the innovation level of salacca zalacca var. amboinensis cultivation, the postharvest innovation level, and the marketing innovation level influence the competitive advantage of salacca zalacca var. amboinensis. references adijaya, i. n., jl, b., & rai, p. d. b. p. n. 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(2021). the export competitiveness of indonesian spices to european union-15. agric, 32(2), 139–162. https://doi.org/10.24246/agric.2020.v32.i2.p139-162 https://doi.org/10.5267/j.uscm.2020.7.004 https://doi.org/10.24843/bum.2018.v17.i02.p10 https://doi.org/10.5897/jdae2013.0527 https://doi.org/10.9734/bjemt/2016/24152 https://doi.org/10.47532/jis.v3i1.3 https://doi.org/10.22219/jiko.v0i0.13483 https://doi.org/10.1016/j.spc.2020.12.031 https://doi.org/10.21776/ub.apmba.2016.004.03.4 https://doi.org/10.21776/ub.apmba.2016.004.03.4 https://doi.org/10.1016/j.indmarman.2020.04.023 https://doi.org/10.24246/agric.2020.v32.i2.p139-162 agbioforum, 25(3): 9-19. ©2023 agbioforum muthuswamy & sudhakar navigating nanotechnology: unveiling the role of government pressure and organizational culture in enhancing… navigating nanotechnology: unveiling the role of government pressure and organizational culture in enhancing environmental performance in printing and coatings industry vimala venugopal muthuswamy department of management, college of business administration, king faisal university, al-ahsa 31982, saudi arabia. email: fmuthuswamy@kfu.edu.sa b. sudhakar director -mba, hindusthan college of arts & science, coimbatore. email: directormba@hicas.ac.in this research aims to explore the existing relationship of nanotechnology innovation with organizational culture and the environmental performance of organizations. moreover this research used organizational culture as a mediating variable and government pressure as a moderating variable among the relationship of nanotechnology innovation and environmental performances of organizations. this research was conducted in kingdom of saudi arabia and collected data from 187 employees working in different organizations of printing and coatings industry. to achieve the aim of this research this study has employed the stata software with structural equation modeling approach. findings of this research have shown a significant association among direct relationships of nanotechnology innovation and environmental performances of organizations. moreover, a significant relationship was also found among nanotechnology innovation and organizational culture. the findings also confirmed that the relationship between nanotechnology innovation and environmental performance is also moderated by government pressure and mediated by organizational culture. this study demonstrates that nanotechnology possesses the capability to completely transform organizations. this study highlights the importance of a conducive business culture and environmentally conscious regulatory requirements with the aim of enhancing environmental sustainability. keywords: nanotechnology innovation, organizational culture, environmental performance, government pressure, sustainability. 1. introduction in the fast-changing world the organizations are involved in dealing with several challenges like implementation of technological changes and environmental concerns. it creates a new area of research at the intersection of nanotechnology and environmental sustainability, which is an area of research for organizations that is growing quickly and becoming increasingly intricate (justohanani, 2024a). nanotechnology has the potential to spur innovation in a range of sectors and tackle urgent environmental issues by utilizing its ability to control materials at a microscopic scale (preethi et al., 2024). the influence of nanotechnology advancements on enhancing environmental performance in enterprises is significantly shaped by corporate culture and political pressure (justohanani, 2024b). thorough investigation of the interdependencies between environmental sustainability and nanotechnology innovation in business settings is necessary (de freitas cardoso et al., 2024) to comprehend this relationship between. in past research (farooqi et al., 2023; ometto et al., 2023; provensi et al., 2024) all the important aspects of government pressure, organizational culture, environmental performance, and nanotechnology innovation have been studied, yielding informative and instructional results. according to the vickram et al. (2023), nanotechnology's ability to overcome nanoscale material limits and address sustainability and environmental issues in various fields are driving interest in this topic. suggests that nanoparticles, nanofibers, and nanocomposites may clean the environment. nanotechnology-enabled photocatalytic coatings can clean water and air, according to recent research of huang et al. (2023). nanoparticle sensors can regulate pollutants, monitor the environment in real time, and manage resources proactively. huang et al. (2023) findings imply that nanotechnology may benefit the environment by encouraging new materials and technologies. li et al. (2023) study indicated that corporate cultures influence nanotechnology utilization, which could impact scientific and environmental sustainability. several studies have shown that an organization's culture affects employee retention and creativity. it's well known that an organization's values, expectations, and beliefs affect employee behavior (harsanto et al., 2023). nanotechnology companies are noted for their environmental sustainability, adaptability, and collaboration, according to the previously listed companies. encouragement of a culture that values innovation and cautiously absorbs new technology will benefit us business leaders and the corporate community (çaldağ et al., 2023). nanotechnology may improve stakeholder participation, environmental performance, and competitiveness (reyes ruiz, 2023). this new economic sector may lead eco-friendly innovation. the fields of commercial ethics, ecological efficiency, and nanotechnology have all seen significant advancements (soomro et al., 2023). however, further empirical research mailto:fmuthuswamy@kfu.edu.sa mailto:directormba@hicas.ac.in agbioforum, 25(3), 2023 | 10 muthuswamy & sudhakar navigating nanotechnology: unveiling the role of government pressure and organizational culture in enhancing… is required to provide a deeper understanding. the amount of study on how nanotechnology affects environmental effects is increasing (huang et al., 2022). but these studies frequently ignore the impact of things like business culture or political pressure (ma et al., 2022). the significance that corporate culture plays in promoting innovation in nanotechnology and enhancing environmental performance has not received enough attention. as tjebane et al. (2022) point out, previous research has mainly disregarded the political reasons for using nanotechnology to advance environmental sustainability. scientific developments in the domains of environmentally friendly technologies and nanotechnology can be strongly influenced by government laws, rules, and incentives (moon et al., 2022). an organization's long-term viability is influenced by a number of factors, including its environmental policies, breakthroughs in nanotechnology, internal political pressures, and business culture (ramogayane, 2022). this study explores the complex relationships between environmental performance, company culture, political pressure, and nanotechnology innovation in an effort to reconcile the previously described disparities. theoretical frameworks including organizational culture theory (clarysse et al., 2022), institutional theory (indiya et al., 2021), and innovation diffusion theory (pan et al., 2021) are used to achieve this. the research attempts to address two distinct questions: first, what is the link between environmental performance and innovation in nanotechnology, and how is it influenced by governmental obstacles and business culture? second, how is this link mitigated by business culture? this study adds to a better understanding of how nanotechnology innovation could help environmental sustainability in organizational environments by combining many theoretical frameworks and using rigorous empirical methodologies. 2. literature review nanotechnology's unparalleled accuracy and adaptability have transformed the printing and coatings industries (raeesi nafchi et al., 2021) .the nanoscale has enabled scientists to increase ink functionality and develop novel coatings with improved qualities (ghiasi et al., 2021). nanoparticle-based inks, which increase conductivity, color intensity, and durability, represent a significant improvement. nanoparticles in ink formulations enhance resolution and print quality (licup et al., 2021). this might allow flexible electronics, sensors, and medicinal devices. nanotechnology enhances uv, anti-corrosion, and scratch coatings. molecularly tailored nanocoatings prolong printed materials and substrates in many applications by improving adhesion and coverage (bensaude-vincent, 2021). nanotechnology enhances printing and coating performance and sustainability since nanoparticles use less, decreasing waste and environmental impact (cummings et al., 2021). ashraf et al. (2021) research predicts nanotechnology will seamlessly integrate into the printing and coatings sectors, spurring innovation and transforming how consumers use printed products. nanotechnology's components affect a company's environmental performance. many sectors use nanotechnology to improve materials, processes, and nanoscale applications (renn et al., 2006) . advances include nanoparticles, nanocomposites, and nanodevices in products and processes (hadj, 2020). organizational environmental performance is its ability to reduce environmental impact and increase resource efficiency and sustainability (chen et al., 2020). reduce greenhouse gas emissions, waste, water, and energy using sustainable supply chains. nanotechnology innovation has been empirically connected to environmental performance. many studies suggest nanotechnology may improve environmental sustainability for businesses across industries. ghazinoory et al. (2020) claim nanoparticles can make sturdy, lightweight, energy-efficient products. photocatalytic coatings, nanofiltration membranes, and nanocomposite materials have considerably improved wastewater, air, and pollution treatment (bowman et al., 2020; gonzales-gemio et al., 2020; macnaghten et al., 2020). modern nanotechnology can enhance resource efficiency and minimize pollution, boosting sustainability, as shown in these research. studies show that nanotechnology innovation impacts an organization's environmental performance. nanotechnology reduces waste, pollution, and resource use (justo-hanani, 2024b). nanomaterials enhance sustainability, process optimization, and product innovation (justo-hanani, 2024a). a corporation that invests in cutting-edge nanotechnology may perform better environmentally. our worldview stresses nanotechnology's environmental benefits and importance. h1. nanotechnology innovation has a significant impact on the environmental performance of an organization. early studies related organizational culture to nanotechnology innovation. numerous studies show that nanotechnology changes organizational norms, attitudes, and behaviors. nanotechnology innovation firms foster creativity, risk-taking, and learning, according to farooqi et al. (2023). nanotechnology adoption needs multidisciplinary collaboration and a willingness to try new things, which fosters creative organisational cultures (huang et al., 2023). nanotechnology's communication and work practises may impact employee attitudes and organisational culture (li et al., 2023). researchers claim progressive leaders foster nanotechnology innovation through experimentation, adaptability, and flexibility (çaldağ et al., 2023). nanotechnology can alter company culture, altering communication, problem-solving, and interaction. empirical research suggest nanotechnology innovation may affect organizational culture (soomro et al., 2023). nanotechnology may alter organisational culture (ma et al., 2022). nanotechnology innovators are courageous, versatile, and cooperative (moon et al., 2022). nanotechnology integration affects an organization's structure, protocols, communication, and more, according to clarysse et al. (2022). pan et al. (2021) study found that job duties, expectations, and attitudes may alter employee behavior. nanotechnology may transform corporate practices, attitudes, and behavior. h2. nanotechnology innovation has a significant impact on the organizational culture. research has examined the complex relationship between nanotechnology, organizational culture, and the agbioforum, 25(3), 2023 | 11 muthuswamy & sudhakar navigating nanotechnology: unveiling the role of government pressure and organizational culture in enhancing… environment. research reveals company culture affects creativity and environmental norms. ghiasi et al. (2021) say management culture affects staff creativity and sustainability. risk-taking, collaborative, and adaptable companies may employ nanotechnology (bensaudevincent, 2021). corporate culture affects workers' sustainability program comprehension, commitment, and involvement, which impacts environmental performance, according to ashraf et al. (2021). environmentalism, resource conservation, and pollution control gain support. studies show company culture influences nanotechnology innovation and environmental performance. empirical data suggests that organizational culture impacts environmental performance and nanotechnology innovation. company culture affects employees' innovation and sustainability attitudes, behaviors, and decisions (hadj, 2020). nanotechnology discoveries for environmental performance are easier to embrace and apply in an organisation that values innovation, cooperation, and environmental responsibility (renn et al., 2006). however, a company culture that resists change, compartmentalizes cognitive processes, and focuses on the present may hinder nanotechnology-based solutions and environmental sustainability (cummings et al., 2021). licup et al. (2021) study suggests company culture will moderate nanotechnology innovation's environmental impact. the importance of a sustainable and technologically advanced environment is highlighted. h3. organizational culture significantly mediates the relationship of nanotechnology innovation and environmental performance. government pressure, nanotechnology innovation, and environmental performance are linked, according to empirical studies. government environmental rules, norms, and incentives affect business innovation and sustainability, according to raeesi nafchi et al. (2021). strict environmental legislation and enforcement benefit businesses, according to recent studies. nanotechnology and other sustainable methods can reduce environmental damage, according to recent studies (indiya et al., 2021). nanotechnology research that reduces waste, energy, and pollution can get government subsidies, funding, and tax incentives (ramogayane, 2022). without rules, companies may be unwilling to invest in green technologies. political pressure affects nanotechnology innovation and environmental performance, according to extensive study (harsanto et al., 2023). a recent study found that political pressure affects nanotechnology innovation and environmental performance. tjebane et al. (2022) found that government policies affect business investment, innovation, and environmental goals. due to environmental limitations, corporations must adopt greener technology and procedures. huang et al. (2022) found that nanotechnology can improve innovation and environmental performance. nanotechnology may improve the environment. government aid and strong regulations may limit business goals and reduce reform urgency (reyes ruiz, 2023). political pressure may affect nanotechnology innovation and the environment. government rules and regulations are essential for technical innovation and environmental sustainability. h4. government pressure significantly moderates the relationship of nanotechnology innovation and environmental performance. figure 1: research model. 3. methodology the study was conducted in the kingdom of saudi arabia, with a focus on those with expertise in the printing and coatings sector who use nanotechnology. the study involved 187 employees from various companies in the industry. the variables employed in this study were adapted from earlier research to ensure validity and reliability. measures of company culture, environmental performance, political pressure, and nanotechnology innovation were explicitly utilized. these scales have been previously validated and are well-regarded in the literature. this research has used three items scale of zwirtes et al. (2014) to measure the nanotechnology innovation. moreover, government pressure was measure on four items scale in this research (wang et al., 2021). organizational culture was measure on eight items scale (three items of which were dedicated to measure competence in visionary leadership, and five were for competence in systemic improvement); the scale was adopted from the work of boychuk et al. (2017). the environmental performance was measured on a six items scale in this research (wang et al., 2021). data was collected through a computerized selfadministered survey. this study explored various aspects including attitudes towards environmental performance, company culture, political pressure, and nanotechnology innovation. participants were provided with clear instructions on informed consent prior to taking the survey. data analysis was done with stata-sem. hypotheses with many components and complicated variable connections can be tested using structural equation modeling. to examine political pressure, company culture, environmental performance, and nanotechnology innovation, the data was thoroughly examined. several precautions were taken to ensure measuring equipment reliability. first, scales with demonstrated validity and reliability in prior studies were carefully selected. to test survey question clarity, a small sample participated in a pilot research. cronbach's alpha was used to assess the study's scales' validity. demographic data were utilized as statistical controls in sem models to support conclusions. age, gender, work experience, job title, and education are typical demographic data. these criteria were carefully evaluated to assure precision and minimize possible influences affecting the outcomes. 4. results table 1's results provide light on the consistency and reliability of the study model's quantifiable variables. hair et al. (2017) found that all variables had cronbach's alpha values over 0.7. agbioforum, 25(3), 2023 | 12 muthuswamy & sudhakar navigating nanotechnology: unveiling the role of government pressure and organizational culture in enhancing… variable internal consistency dependability looks good. cronbach's alpha of 0.789 indicates strong reliability for nanotechnology innovation issues. government pressure, competence culture, and environmental performance have cronbach's alpha coefficients of 0.825, 0.864, and 0.852. three variables have great internal consistency. this study shows that the data accurately represents the concepts being assessed, enhancing the dependability of the variable evaluation tool. table 1: cronbach's alpha. variable cronbach's alpha composite reliability average variance extracted (ave) nano-technology innovation 0.789 0.755 0.625 government pressure 0.825 0.887 0.566 competency culture 0.864 0.827 0.547 environmental performance 0.852 0.816 0.575 all variables' composite reliability coefficients surpassed 0.7, confirming the measurement model's internal consistency (fornell & larcker, 1981). composite reliability coefficients measure concept latent variable consistency with items, according to hair et al. (2017). composite dependability scores of 0.755, 0.887, 0.827, and 0.816 indicate dependable and consistent monitoring of nanotechnology innovation, government pressure, competence culture, and environmental performance. convergent validity is assumed for any ave values > 0.5 (hair et al., 2017). the ave reveals that the measured constructs are different by measuring variance capture relative to measurement error. validity and reliability evaluations prove the measurement model's endurance and comfort researchers about data quality for analysis. figure 2: estimated model. confirmatory factor analysis (cfa) results in table 2 are critical for measuring model validity. standardized factor loadings (oim coef.) for indicator items on their latent constructs show visible variable-construct correlation. statistically significant factor loadings show that indicator variables properly measure concepts. all three nanotechnology innovation (nti) indicator items (nti1, nti2, nti3) have substantial factor loadings (0.566 to 0.770, p < 0.001), confirming the construct's validity. the indicator items for government pressure (gp), competency culture (cvl), and environmental performance (ep) reinforce the validity of these categories, with factor loadings ranging from 0.330 to 0.921 (p < 0.001). the study's measuring approach was validated since the factors accurately reflect environmental performance, competency culture, government pressure, and nanotechnology innovation. table 2: confirmatory factor analysis. measurement oim coef. std. err. z p>|z| [95% conf. interval] nti1 1 (constrained) nti2 0.770 0.071 10.959 0.000 0.649 0.935 nti3 0.566 0.063 9.038 0.000 0.455 0.710 gp1 1 (constrained) gp2 0.901 0.082 11.050 0.000 0.761 0.885 gp3 0.708 0.071 10.049 0.000 0.585 0.873 gp4 0.330 0.066 5.075 0.000 0.207 0.472 cvl1 1 (constrained) cvl2 0.713 0.061 11.184 0.000 0.610 0.857 cvl3 0.857 0.078 10.511 0.000 0.724 0.842 csi1 0.731 0.085 8.654 0.000 0.580 0.924 csi2 0.816 0.066 12.465 0.000 0.706 0.973 csi3 0.892 0.066 13.088 0.000 0.786 0.852 csi4 0.807 0.066 11.665 0.000 0.696 0.964 csi5 0.921 0.072 12.920 0.000 0.802 0.885 ep1 1 (constrained) ep2 0.782 0.063 11.953 0.000 0.677 0.933 ep3 0.857 0.060 13.737 0.000 0.760 0.804 ep4 0.758 0.072 14.251 0.000 0.733 0.944 ep5 0.842 0.066 12.283 0.000 0.733 0.801 ep6 0.834 0.065 12.351 0.000 0.726 0.990 table 3 shows measurement item fitness statistics and measurement model performance. the composite reliability coefficient (crc) measures the original sample values-based internal consistency of each latent construct based on indicator items. nanotechnology innovation crc values are between 0.791 and 0.874, indicating build reliability. crc values of 0.580 to 0.676 indicate moderate to high government pressure internal consistency. the competency culture indicator items have crc values from 0.615 to 0.901, demonstrating measurement reliability variation. crc values range from 0.598 to 0.899, indicating moderate to high internal consistency in environmental performance. despite the majority of constructs having good internal consistency, more research is needed to ensure the validity of assessment within these constructs due to the variation in crc values among competency culture and environmental performance indicator items. the original sample values also assess the measurement model's applicability and guide future revisions to improve model fit and dependability. table 3: measurement items fitness statistics. variable indicator original sample nano-technology innovation nti1 0.851 nti2 0.874 nti3 0.791 government pressure gp1 0.676 gp2 0.668 gp3 0.593 gp4 0.580 competency culture cvl1 0.615 cvl2 0.901 cvl3 0.795 csi1 0.789 csi2 0.821 csi3 0.839 csi4 0.683 csi5 0.660 environmental performance ep1 0.873 ep2 0.899 ep3 0.809 ep4 0.757 ep5 0.889 ep6 0.598 agbioforum, 25(3), 2023 | 13 muthuswamy & sudhakar navigating nanotechnology: unveiling the role of government pressure and organizational culture in enhancing… the measurement model's fit statistics in table 4 show how well it fits the data. the likelihood ratio chi-square value of 11471.839 indicates a significant difference (p < 0.001) between the proposed model and a fully fitted saturated model. a baseline model without correlations yields a significantly different chi-square statistic (12393.552) compared to the suggested model (p < 0.001). the suggested model may not match the data completely, but it matches it better than the baseline and saturated models. remember that chi-square statistics rely on sample size, hence more fit indices are needed to evaluate model fit. the likelihood ratio and baseline chi-square statistics' statistically significant p-values imply that the suggested measurement model differs from the saturated and baseline models, providing preliminary verification of its applicability. table 4: chi-square fit statistics. fit statistic value description likelihood ratio 11471.839 model vs. saturated p > chi2 0.000 chi2_bs (2356) 12393.552 baseline vs. saturated p > chi2 0.000 table 5 shows the saturated and estimated models' goodnessof-fit statistics and r-square values for each latent variable. lower standardized root mean square residual (srmr) values indicate better model fit compared to observed and model-implied covariance matrices. a srmr of 0.047 indicates that the saturated model fits the data well. the estimated model's srmr climbs to 0.066, indicating a little model fit drop. despite this small increase, the srmr value remains within an acceptable range, indicating that the calculated model fits the data well. r-square values for each latent variable in the model show how much exogenous variables explain endogenous variable variance. nanotechnology innovation has an r-square score of 0.505, indicating that exogenous causes explain 50.5% of variation. government pressure has an r-square value of 0.596, indicating that external variables explain 59.6% of the variance. competency culture has an r-square score of 0.227, showing that exogenous variables explain 22.7% of the variance. these r-square values show how much external factors explain endogenous variable variance, proving the model's ability to describe construct linkages. table 5: model goodness of fit statistics. variable saturated model estimated model r square srmr 0.047 0.066 nano-technology innovation 0.505 government pressure 0.596 competency culture 0.227 the relationship between nanotechnology innovation, environmental performance, and organizational culture is displayed in table 6's direct path analysis results. standard errors (std. err.) indicate estimate precision, while standardized path coefficients (oim coef.) display the direction and intensity of variable relationships. with a path coefficient of 0.214 (p < 0.001), there is a strong and positive correlation between environmental performance and nanotechnology innovation. this implies that an organization's environmental performance is enhanced by nanotechnology innovation. the significance of the link is confirmed by the path coefficient's 95% confidence interval (0.417, 0.321), which does not include zero. businesses that make innovative investments in nanotechnology may see improvements in their environmental performance. table 6: direct path analysis. oim coef. std. err. z p>|z| [95% conf. interval] nanotechnology innovation has a significant impact on the environmental performance of an organization. 0.214 0.104 2.111 0.001 0.417 0.321 nanotechnology innovation has a significant impact on the organizational culture. 0.895 0.075 2.948 0.000 0.530 0.801 organizational culture has a favorable and significant impact on nanotechnology innovation, as indicated by a path coefficient of 0.895 (p < 0.001). this suggests that nanotechnology innovation promotes creativity, teamwork, and environmental responsibility in organisations. path coefficient's 95% confidence interval (0.530, 0.801) supports the association's relevance. nanotechnology innovation-friendly companies are more likely to promote innovation and sustainable business practices. the direct path analysis shows that nanotechnology innovation profoundly impacts company culture and environmental performance. these findings demonstrate the importance of nanotechnology in organizational activities to foster a sustainable, innovative culture and positive environmental change. figure 3: structural model for path analysis. table 7 provides helpful information about the moderating and mediating roles played by organizational culture and governmental pressure on environmental performance and nanotechnology innovation. standard errors (std. err.) show estimation precision, while standardized path coefficients (oim coef.) show correlation direction and intensity. with a path coefficient of 0.212 (p = 0.008), organizational culture significantly mediates nanotechnology innovation and environmental performance. this shows that organizational culture is crucial to translating nanotechnology innovation into environmental performance. the path coefficient's 95% confidence interval (0.413, 0.318) supports the mediating effect's importance. firms with supportive organizational cultures are more likely to benefit from nanotechnology innovation's environmental benefits because they encourage agbioforum, 25(3), 2023 | 14 muthuswamy & sudhakar navigating nanotechnology: unveiling the role of government pressure and organizational culture in enhancing… employees to adopt sustainable practices and promote good environmental change. table 7: mediating and moderating path analysis. oim coef. std. err. z p>|z| [95% conf. interval] organizational culture significantly mediates the relationship of nanotechnology innovation and environmental performance. 0.212 0.103 2.088 0.008 0.413 0.318 government pressure significantly moderates the relationship of nanotechnology innovation and environmental performance. 0.885 0.074 2.916 0.000 0.524 0.792 a path coefficient of 0.885 (p < 0.001) suggests government pressure considerably moderates the association between nanotechnology innovation and environmental performance. government pressure may strengthen the link between nanotechnology innovation and environmental performance. the route coefficients of 95% shows a significant moderating influence with confidence intervals of 0.524, 0.792. hence, it can be concluded that the progress in nanotechnology significantly improves the environmental performance of organizations and businesses operating under up-to-date environmental policies. this research findings highlight the significant impact of government pressure and organizational culture on environmental consequences of nanotechnology innovation. 5. discussion nanotechnology has emerged as a viable approach to solving environmental concerns and spurring innovation across industries, with the potential to greatly improve sustainability results. government pressure and business culture both have an impact on how companies use nanotechnology to meet environmental goals. the confirmed study hypotheses explain how political pressure, environmental performance, corporate culture, and nanotechnology innovation interact within companies. understanding the relationships among these components is essential to illustrating how developments in nanotechnology could facilitate the process of improving the environmental circumstances of businesses. the validation of the initial and subsequent hypotheses has uncovered the noteworthy influence of nanotechnology innovation on both environmental performance and company culture. companies may enhance their environmental performance and sustainability by using nanotechnology. nanomaterials are an effective way to achieve environmental and regulatory goals. minimizing waste, improving resource use, and limiting pollution can help organizations achieve sustainability goals. the confirmation of the second hypothesis shows that corporate culture promotes forward-thinking, ecofriendly business initiatives. a flexible, team-oriented, and environmentally sensitive organisational culture advances nanoscale technologies that increase environmental performance (huang et al., 2023). leadership is crucial to building corporate culture. reyes ruiz (2023) found that forward-thinking leaders value creativity, adaptability, and new ideas. these hypotheses underscore the relationship between environmental performance, nanotechnology innovation, and organizational culture. the influence of organizational culture on how employees perceive, act, and make decisions about adopting new technologies and sustainable practices is of great importance. therefore, nanotechnology innovation and environmental performance are closely influenced. a company must promote support, environmental responsibility and stewardship, experimentation, and continuous learning to successfully integrate nanotechnology into processes and products (ramogayane, 2022). vickram et al. (2023) study concluded that government r&d expenditure and eco-friendly technologies and methods may improve nanotechnology's environmental performance and innovation. according to soomro et al. (2023), emphasizing the relevance of eco-friendly corporate practices and technologies can boost nanotechnology innovation and environmental performance. several studies have provided evidence for the third and fourth hypotheses, which examine the impact of business culture and political pressure on environmental performance and nanotechnology innovation. business culture may link nanotechnology innovation with environmental performance. nanotechnology needs better acceptability, application, and durability. this research language promotes creativity, teamwork, and environmental consciousness. the firm promotes innovation, learning, and responsible management. indiya et al. (2021) analysis showed the company's environmental improvement. according to li et al. (2023), political pressure may impact nanotechnology innovation and environmental performance. due to severe regulations and enticing incentives, many firms adopt green goods and processes. linked nanotechnology to environmental performance. the study's findings have a significant effect on companies who print and cover products using nanotechnology. these factors are important inside the boundaries of the kingdom of saudi arabia (ksa). the field's goals of sustainability stand to gain a great deal from new technologies, as demonstrated by the positive relationship found between advances in nanotechnology and environmental performance. nanotechnology can be used to reduce environmental damage and promote economic growth, among other benefits. this is particularly true in view of the kingdom of saudi arabia's ambitious vision 2030 strategy, which emphasizes the importance of environmental sustainability and economic diversification. based on these findings, businesses in the kingdom of saudi arabia (ksa) are advised to invest research and development of nanotechnology applications as a top priority in order to enhance their environmental performance. this will be consistent with the country's overarching sustainability objectives. further highlighting the importance of contextual factors in influencing the relationship between nanotechnology innovation and environmental performance in saudi arabia are the moderating effects of government pressure and the mediating influence of organizational culture. in the kingdom of saudi arabia (ksa), organizations need to be creative and environmentally aware to keep up with agbioforum, 25(3), 2023 | 15 muthuswamy & sudhakar navigating nanotechnology: unveiling the role of government pressure and organizational culture in enhancing… the rapidly evolving regulatory environment and the growing importance of sustainability programs. policymakers and regulatory bodies can play a major role in promoting and facilitating the adoption of environmentally friendly technologies by implementing supportive legislation and offering incentives. there are two approaches to this: developing incentive programs and regulatory frameworks. establishing cooperation between academic, commercial, and public entities may help the kingdom of saudi arabia fully use the transformative potential of nanotechnology innovation. by doing this, the kingdom would be able to address environmental issues and promote sustainable development in accordance with vision 2030's objectives. these theories show how nanotechnology, business ethics, environmental issues, and political power are linked. employee innovation and sustainability depend on company culture. environmental change may boost organizational culture. study nanotechnology and environmental stewardship. government pressure on environmental performance and nanotechnology innovation can impact company r&d and eco-friendly practises and technologies. nanotechnology, strong legal frameworks, and a good company culture may help organizations achieve sustainable development. implementing the ideas provides a complete examination of the complex interaction between business culture, environmental efficiency, political influence, and nanotechnology advancement. nanotechnology and excellent company culture can boost environmental impact, competitiveness, and stakeholder satisfaction. government regulations strongly impact environmental nanotechnology adoption. for innovation and sustainable development, governance, organization, and stakeholder participation is crucial. to accomplish sustainable development goals and beneficial environmental change, several aspects must be considered. they include political pressure, business culture, technical innovation, and sustainability. 6. conclusion a thorough examination of this research hypotheses revealed the complex interaction between organizational culture, government influence, environmental performance, and nanotechnology innovations. according to the findings, incorporating nanotechnology can improve organizational situations. nanotechnology and a healthy corporate culture can boost environmental performance while maintaining competitiveness and shareholder returns. this research emphasizes the need of collaboration across governments, organizations, and stakeholders in order to achieve innovation and sustainable development goals. it emphasizes how laws and regulations encourage nanotechnology for environmental sustainability. the findings help us understand how nanotechnology may improve the environment. they stress the need of holistic methods that take into account company culture, political influences, technological advancements, and environmental aims. organizations can use nanotechnology to address environmental issues and achieve sustainable development. continuous study and collaboration can create a more resilient and sustainable world for future generations. implications of the study environmental performance, organizational culture, government pressure, and nanotechnology innovation interact in complex ways in organizational contexts. this study has substantial theoretical implications. by showing how nanotechnology innovation affects environmental performance, the results advance theoretical frameworks like institutional theory, innovation diffusion theory, and organizational culture theory. organizations must build a creative and environmentally conscious culture because organizational culture is a critical mediator in translating technology discoveries into sustainable outcomes. government pressure was found to be a significant moderator, highlighting the importance of institutional and regulatory elements outside the corporation in deciding how companies adopt and deploy environmentally sustainable practices and technology. the theoretical insights presented here will help sustainable innovation researchers comprehend contextual elements that affect technical innovation and environmental performance. environmental sustainability groups, policymakers, and others may benefit from the study's findings. organizations may promote innovation, teamwork, and environmental stewardship by understanding how organizational culture influences sustainability. sustainability projects and employee involvement may require training, communication, and cross-functional cooperation. lawmakers may use government pressure data to create green technology incentives and rewards. sustainable regulations can motivate companies to innovate and enhance their environmental performance. this helps companies achieve sustainability. this report advises firms on nanotechnology for environmental sustainability during theoretical development and implementation. nanotechnology research aids governments and organizations in environmental sustainability. findings emphasize green and creative corporate cultures. such ideas may improve corporate creativity, teamwork, and sustainability. sponsoring staff training, developing cross-functional sustainability teams, and incorporating sustainability into performance assessments and awards are examples. sustainable and innovative organizations may promote nanotechnology adoption and deployment to improve environmental performance. the analysis also cites government pressure on enterprises to adopt green technologies. this research can help governments create nanotechnology innovation incentives and policies for environmental sustainability. such as tax incentives, grants, and finance for nanotechnology-based environmental solutions and regulations supporting green industrial materials and technologies. innovative sustainability concepts and laws may encourage nanotechnology research and sustainable business practices. sustainability stakeholders across industries and enterprises are affected by the study. the findings can help businesses, trade groups, and ngos enhance sustainable technology and practices. these stakeholders may promote sustainable technology and meet sustainability goals by highlighting nanoscale innovation's environmental benefits and best practices. in conclusion, this study's positive findings help agbioforum, 25(3), 2023 | 16 muthuswamy & sudhakar navigating nanotechnology: unveiling the role of government pressure and organizational culture in enhancing… decision-makers, organizations, and interested parties use nanotechnology to improve environmental sustainability and promote a sustainable future. limitations and future research directions this study highlights the linkages between company culture, government pressure, nanotechnology innovation, and environmental performance, but future research should address various constraints. since the study only uses cross-sectional data, it is harder to determine why the factors are correlated. experimental or longitudinal designs may be used to identify causal correlations and better understand company culture, political pressure, nanotechnology innovation, and environmental performance over time. self-reported data from one source raises common method bias and social desirability in the study. to provide a more complete sustainability assessment, future research might combine a range of data sources with objective environmental performance assessments such pollution levels or resource consumption data. the study also targets a single business or location, limiting its applicability. to understand the dynamics, future research may examine government pressure, firm culture, nanotechnology innovation, and environmental performance across sectors, industries, and geographies. research may improve this study's findings and fix its flaws. first, future research may examine how employee attitudes, beliefs, and motivations affect the adoption and use of revolutionary nanotechnology for environmental sustainability. personality, external constraints, and organizational culture can affect policies and solutions. nanomaterials and nanodevices research may affect industry and application environmental performance. researchers can uncover sustainable technology investment and innovation opportunities using nanoscale technologies' features and environmental benefits. future research may examine how context affects environmental performance, business culture, political pressure, and nanotechnology innovation. industry competition, constraints, and stakeholder pressure. researchers may provide firms and governments more nuanced nanotechnology innovation suggestions to improve environmental sustainability by including these contextual factors. to conclude, overcoming these obstacles and exploring these research areas can help us understand the complex relationship between organisational dynamics, regulatory frameworks, environmental sustainability, and nanotechnology innovation. innovation adoption and sustainable development will improve. references acknowledgement this work was supported 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https://doi.org/10.3389/fpsyg.2020.553625 https://doi.org/10.3389/fpsyg.2020.553625 https://doi.org/10.17524/repec.v8i1.936 https://doi.org/10.17524/repec.v8i1.936 agbioforum, 25(3), 2023 | 19 muthuswamy & sudhakar navigating nanotechnology: unveiling the role of government pressure and organizational culture in enhancing… appendix 1 nano-technology innovation: 1. to what extent does your organization invest in research and development of nanotechnology applications? 2. how frequently does your organization introduce new nanotechnology-based products or services? 3. how innovative is your organization in applying nanotechnology to improve processes or solve problems? government pressure: 1. how strongly does government regulation influence decision-making within your organization? 2. to what extent does government policy incentivize or discourage the adoption of environmentally friendly technologies in your organization? 3. how closely does your organization monitor government regulations related to environmental sustainability? 4. how much pressure does the government exert on your organization to comply with environmental standards and regulations? organizational culture: competence in visionary leadership: 1. to what extent does leadership in your organization inspire and motivate employees to embrace innovative ideas and technologies? 2. how well does leadership in your organization communicate a clear vision for sustainability and environmental responsibility? 3. how effectively does leadership in your organization encourage risk-taking and experimentation to drive innovation? competence in systemic improvement: 1. how well does your organization encourage collaboration and teamwork to implement sustainability initiatives? 2. to what extent does your organization promote continuous improvement and learning in environmental practices? 3. how effectively does your organization integrate sustainability goals into strategic planning and decision-making processes? 4. how supportive is your organization of employee initiatives aimed at improving environmental performance? 5. how well does your organization recognize and reward contributions to environmental sustainability efforts? environmental performance: 1. how effectively does your organization manage and reduce its carbon footprint? 2. to what extent does your organization minimize waste and pollution in its operations? 3. how successful is your organization in conserving natural resources and promoting energy efficiency? 4. how well does your organization comply with environmental regulations and standards? 5. how proactive is your organization in addressing environmental challenges and implementing sustainable practices? 6. how transparent is your organization in reporting its environmental performance to stakeholders? agbioforum, 26(1): 24-31. © 2024 agbioforum wu et al. evaluation of insect tea extracts' in vitro antioxidant activities: a comparative study with vitamin c evaluation of insect tea extracts' in vitro antioxidant activities: a comparative study with vitamin c juxian wu school of industrial technology, universiti sains malaysia, 11800 minden, penang, malaysia, guangdong vocational college of science and trade, no. 36 zhongsu road, qingyuan, guangdong province, china. joo shun tan* school of industrial technology, universiti sains malaysia, 11800 minden, penang, malaysia. email: jooshun@usm.my ruyi wang guangdong food and drug vocational college, china enfei chen zhuhai people’s hospital, china chunye xie guangdong medical university, china kexin wu guangdong medical university, china insect tea is a fascinating variety of tea in china, created through the intricate process of utilising the faecal pellets of particular insects that have consumed specific plants and then undergoing digestion or fermentation. insect tea is renowned for its unique taste and numerous health advantages. this study aims to scientifically evaluate the antioxidant effects of insect tea samples. it focuses on experimental analysis to investigate the antioxidant activity of insect tea extracts. this study examines the impact of varying concentrations of insect tea extracts and a positive control (vitamin c) on total reducing power and the ability to scavenge dpph•, abts+•, and oh radicals. based on the findings, it is evident that the insect tea extract possesses significant reducing power at a concentration of 0.05 mg/ml. the extract exhibits impressive scavenging rates for dpph•, abts+•, and •oh radicals, with percentages of 29.23%, 25.42%, and 11.11%, respectively. in this concentration, the insect tea extract demonstrates the most potent scavenging ability for dpph• radicals. as the concentration of insect tea extract is increased to 0.40 mg/ml, the total reducing power reaches 1.211. this is accompanied by scavenging rates of 91.51%, 97.70%, and 69.99%, respectively. these results suggest that the antioxidant capacity improves as the concentration of insect tea extract increases. in vitro antioxidant activity of insect tea extract has been observed at a concentration of 0.05 mg/ml, and its antioxidant effect becomes more pronounced as the concentration increases. keywords: antioxidant activity, dpph radicals; insect tea, abts radicals; hydroxyl radicals; extract concentration. introduction redox reactions play a crucial role in supplying energy to cells for their proper functioning. however, certain factors like pollution, smoking, inadequate nutrition, and harmful consumption can lead to an excessive production of free radicals within the body. illnesses like diabetes, cancer, cirrhosis, and various cardiac and neurological issues are clear examples of conditions associated with an irregular and uncontrolled process of radical production. in addition, they can contribute to oxidative damage of cells by generating advanced glycation end products, inhibiting enzymes, affecting dna chromosomes, and disrupting membrane lipids (peng et al., 2022). in the realm of academia, oxidative stress is a widely recognised concept that emerges early in life. nevertheless, it has a detrimental impact on human health. it exacerbates various diseases such as hypertension, parkinson's, and others (hohensinner et al., 2018). furthermore, an excessive accumulation of active yet free radicals in the body can result in oxidative damage, as mentioned earlier, which in turn leads to oxidative stress. therefore, maintaining proper regulation of oxidative levels is essential for ensuring the overall health and functioning of the body. it is crucial to maintain a delicate equilibrium between oxidants and pro-oxidants in order to generate reactive oxygen species. nevertheless, it can be produced in the absence of antioxidants (yi et al., 2020). antioxidants have the ability to stabilise or break down various reactive oxygen species, such as hydroxyl radical, ferryl ion, superoxide radical anion, peroxyl radical, and hydrogen peroxide (tijjani et al., 2022). given their propensity for being triggered by oxidative stress, they can ultimately wreak havoc on cells and other biomolecular targets. antioxidants are widely recognised as crucial for maintaining overall health and well-being. teas are widely acknowledged as beverages that are commonly enjoyed for their advantageous antioxidant properties. tea has been enjoyed for generations, becoming a cherished tradition. there are numerous types of tea that are recognised for their health benefits. insect tea is a well-known traditional beverage in southern china that is highly regarded for its numerous health benefits (zhao et al., 2018). insects are a diverse group of invertebrates classified into various classes within the animal kingdom, including insecta and anthropoda. the insect population varies from 2.6 to 7.8 million (oghenesuvwe & paul, 2019). according to a prior study, the estimated number of insect species is 5.5 million. this kingdom is classified into 29 orders based on its largest group. the presence of these organisms is widespread, encompassing trees, water, soil, and deserts. however, their availability fluctuates with the changing seasons and weather conditions. the assumption that insects are pests that can harm the environment and living beings is widespread across regions (omotoso, 2015). according to mans et al. (2016), scholars have found that humans, plants, and animals can benefit from the use of these substances in human and veterinary medicines, as well as in agricultural practices. entomotherapy refers to the use of insects in disease treatment. this practice is recognised and acknowledged globally, including in countries such as china, india, mexico, and nigeria (igwe, 2014). scholars have confirmed the medical and wellness benefits of insects through clinical and non-medical mailto:jooshun@usm.my agbioforum, 26(1), 2024 | 25 wu et al. evaluation of insect tea extracts' in vitro antioxidant activities: a comparative study with vitamin c methods. insect bioactive compounds offer a broad range of health benefits, including the treatment of cancer, ulcers, diabetes, hyperlipidemia, and heart diseases. there are insect species that have been found to have medicinal properties for treating wounds, bacterial infections, intestinal gas, bleeding, spasms, and lung disorders (afam & rinah, 2017). insect tea, also known as chongshicha in china, is a traditional beverage or medicine used by ethnic minorities in southwestern china (zhang et al., 2022). the tea is considered a distinctive beverage of china, symbolising chinese culture (wang et al., 2021). the consumption of this substance has been practiced for centuries and is believed to have benefits for digestive health, heat and dampness dissipation, spleen function maintenance, and body detoxification. insect tea is popular in tropical regions such as singapore and malaysia for its notable effects (zhu et al., 2019). the process of producing insect tea is highly specific. insect larvae consume leaves and produce excrement. the waste is further processed to produce insect tea. furthermore, the tea is impacted by insect species, and the quality of the tea depends on the specific food chosen by the insects for their larvae. in recent years, academia has documented various claims about the pharmacological properties of this substance, including its anti-oxidation and gastro-protective and hepatic-protective benefits. insect tea is classified as a noncamellia tea, unlike green, black, and mixed teas. the reason for this is the production of a substance extracted from the faeces of certain insects that feed on specific leaves (yuan et al., 2021). insect tea is a distinct type of tea in china, produced from the excrement of specific insect larvae that consume fermented tree leaves from certain plants (ya-feng & lizhang, 2019). the substance comprises nutrients including crude protein, crude fat, sugars, tannins, vitamins, and 18 essential amino acids necessary for human health. insect tea is a distinct beverage of local ethnic minorities, primarily produced in the upstream yangtze river region in hunan, guangxi, guizhou, guangdong, and sichuan. the medicinal use of insect faeces, specifically tea insect faeces, was documented in the year 992 ad in the "taiping holy prescription." li shizhen also recorded its medicinal use in "compendium of materia medica."the user's text is missing. please provide the text you would like to have rewritten (lei & lu, 2001). the utilisation of various types of plants and insects to prepare insect teas is argued to occur across different regions. the quality features of insects, such as colour, taste, aroma, and chemical components, vary depending on the type of insect. some argue that its nutritional values are higher compared to regular tea. this is because this type of tea contains various beneficial components such as crude fat, protein, amino acids, and carbohydrates. the presence of trace elements in tea contributes to its uniqueness, as these elements contain an abundance of polyphenols that are beneficial for the body. according to animal experts, insects have higher antioxidant capabilities compared to hawks and other teas. furthermore, the polyphenols found in incest inhibit enzymatic activity, leading to elevated lipid peroxidation and ultimately resulting in an anticancer effect (zhao et al., 2018). scholars have found that insect tea has a lasting effect on reducing blood pressure and sugar levels. a study found that this type of tea promotes programmed cell death of tca8113 human tongue squamous cell carcinoma cells. a recent study found that insect tea has a significant effect on mouse buccal mucosal cancer. moreover, it hinders the growth of human breast cancer cells. insect tea possesses various notable functions, such as relieving fatigue, improving vision, alleviating irritability, invigorating the body, reducing blood pressure, cooling the blood, quenching thirst, aiding digestion, strengthening the spleen, and alleviating fatigue and pain. when combined with conventional teas, it improves fragrance, flavour, and nutritional content (yuan et al., 2021). energy metabolism in organisms can lead to the production of free radicals, resulting in oxidative reactions that can cause damage and lesions to different body components and organs (marx, 1987). hydroxyl radicals (•oh) are highly damaging oxygen radicals that can react with all cellular components due to their exceptional oxidising power (ao, 2010). currently, it is established that approximately one hundred diseases, including arteriosclerosis, heart disease, tumours, and ageing, are associated with oxidative stress (zhao, 2008). insect tea is rich in flavonoids, polyphenols, polysaccharides, and other active ingredients with natural antioxidant properties. the insect tea contains polyphenolic substances that have potent antioxidant properties, can prevent lipid peroxidation, and have demonstrated anti-mutagenic and anticancer effects (wang & zhang, 2008). the antioxidant effects of insect tea have not been scientifically proven, but it is already being sold in the market as a local speciality (zhao & li, 2015). this study examines insect tea samples from liubao, guangxi, and uses vitamin c as a control in order to conduct in vitro antioxidant experiments. the study compares the effects of various concentrations of insect tea extracts and their corresponding controls on total reducing power and the ability to scavenge dpph•, abts+•, and •oh free radicals. this study's findings will provide a basis for future research on the antioxidant properties of insect tea and its potential health benefits. materials and methods chemicals and instruments the preparation of insect tea extracts in accordance with the approach employed by xiang et al. (2018), insect tea samples were pulverised using a grinder and then passed through a 40-mesh sieve. the insect tea powder was sieved and then mixed with distilled water in a 1:20 ratio. the mixture was stirred with a glass rod and extracted in a 95°c water bath for 30 minutes. the mixture was filtered using a buchner funnel under vacuum to eliminate impurities. the extraction process was repeated three times, and the combined filtrates were concentrated agbioforum, 26(1), 2024 | 26 wu et al. evaluation of insect tea extracts' in vitro antioxidant activities: a comparative study with vitamin c using a rotary evaporator at 50°c. the concentrated extract was freeze-dried to obtain the insect tea extract, which was stored in a refrigerator for later use. prior to conducting the experiments, the sample extracts and vitamin c were prepared as solutions with concentrations ranging from 0.05 mg/ml to 0.40 mg/ml using distilled water. the determination of total reducing power of insect tea extracts xiao (1997) conducted an experiment in which she placed insect tea extract solutions and vitamin c solutions of varying concentrations (2 ml each) in separate test tubes. a phosphate buffer solution with a ph of 6.6 and a 1% potassium ferricyanide solution, both measuring 2.5 ml, were combined and thoroughly mixed by vigorous shaking. the resulting mixture was then incubated at 50°c for a duration of 20 minutes. following rapid cooling to room temperature, 2.5 ml of trichloroacetic acid (10% concentration) was added, thoroughly mixed by shaking, and then centrifuged at 4000 rpm for 10 minutes. the supernatant (2.5 ml) was combined with 2.5 ml of distilled water and 0.5 ml of 0.1% ferric chloride in test tubes. the absorbance at a wavelength of 700 nm was measured using a spectrophotometer after thorough mixing. a control experiment was conducted using 95% ethanol instead of the extract solution. the experiment was conducted in triplicate using various concentrations of insect tea extract and vitamin c solutions. the average value was calculated. table 1: the list of chemicals and instruments with respective manufacturers. chemicals and instruments manufacturers re-52 aa rotary evaporator shanghai yarong biochemical instrument factory scientz-18n freeze dryer ningbo xinzhi biotechnology co., ltd. uv-1800 pc uv-vis spectrophotometer shanghai mapada instrument co., ltd. hh-s6 constant temperature water bath gongyi yuhua instrument co., ltd. shz-d(ⅲ) circulating water vacuum pump gongyi yuhua instrument co., ltd. 80-2 benchtop low-speed centrifuge jiangsu zhengji instrument co., ltd. standard l-ascorbic acid (vc) aladdin reagent co., ltd., shanghai 2,2-diphenyl-1-picrylhydrazyl (dpph) hefei bomei biotechnology co., ltd. ortho-phenanthroline tianjin damao chemical reagent factory 2,2'-azino-bis(3-ethylbenzothiazoline-6-sulfonic acid) diammonium salt (abts) hefei bomei biotechnology co., ltd. 3% hydrogen peroxide solution guangdong hengjian pharmaceutical co., ltd. potassium ferricyanide tianjin damao chemical reagent factory trichloroacetic acid tianjin damao chemical reagent factory ferric chloride tianjin damao chemical reagent factory ferrous sulfate tianjin damao chemical reagent factory potassium persulfate yonghua chemical co., ltd. 95% ethanol tianjin damao chemical reagent factory methanol tianjin fuyu fine chemical co., ltd. potassium dihydrogen phosphate tianjin fuchen chemical reagent factory potassium hydrogen phthalate tianjin kemiou chemical reagent co., ltd. sodium hydroxide tianjin damao chemical reagent factory anhydrous ethanol tianjin fuyu fine chemical co., ltd. sodium dihydrogen phosphate tianjin kemiou chemical reagent co., ltd. sodium hydrogen phosphate tianjin kemiou chemical reagent co., ltd. the determination of dpph radical scavenging activity of insect tea extracts li et al. (2015) conducted an experiment where they added insect tea extract solutions and vitamin c solutions (3.0 ml each) to separate stoppered test tubes, using different concentrations. a 0.1 mmol/l methanol solution of dpph (3.0 ml) was vigorously shaken and allowed to stand in the dark at room temperature for 30 minutes. the absorbance value (a1) was measured at a wavelength of 517 nm. a control (a2) was prepared by combining 3.0 ml of methanol with the insect tea extract and vitamin c solutions. the mixture was then incubated for 30 minutes and the absorbance was measured at 517 nm. a blank solution (a0) was created by combining 3.0 ml of methanol with a 0.1 mmol/l dpph methanol solution. the mixture was then incubated for 30 minutes before measuring the absorbance at 517 nm. the dpph radical scavenging rate was calculated with the formula below. \text {dpph radical scavenging rate (%) = } \left( 1 \frac{(a1 a2)}{a0} \right) \times 100 notes: a1 is the absorbance of the sample (insect tea extract or vitamin c solution) with dpph. a2 is the absorbance of the sample (insect tea extract or vitamin c solution) without dpph (control group). a0 is the absorbance of the blank (methanol with dpph solution). abts+ radical scavenging ability of insect tea extracts li xiaofei (2017) conducted a study where insect tea extract solutions at various concentrations and a vitamin c solution were tested in triplicate. the abts+• radical solution was prepared by combining 88 μl of a 140 mmol/l potassium persulfate solution with 5.0 ml of a 7 mmol/l abts+• solution. the mixture was then incubated in darkness for 14 hours. the abts+• solution was diluted with distilled water to achieve an absorbance of 0.70 (±0.02) at 734 nm. for the experiment, 1.0 ml of insect tea extract or vitamin c solution was combined with 4.0 ml of the abts+• solution in test tubes. the mixture was then incubated in the dark at room temperature for 30 minutes. the spectrophotometer was used to measure the absorbance at 734 nm (a1). a0 denotes the absorbance value obtained when 1.0 ml of either insect tea extract or vitamin c solution was substituted with distilled water. a2 represents the agbioforum, 26(1), 2024 | 27 wu et al. evaluation of insect tea extracts' in vitro antioxidant activities: a comparative study with vitamin c absorbance value obtained when a 4.0 ml abts+• solution is mixed with 1.0 ml of distilled water. the abts+• radical scavenging percentage (%) was calculated using the formula: \[ \text{abts+• radical scavenging rate (%) = } \left[ \frac{a2 (a1 a0)}{a2} \right] \times 100 \] notes: a0 is the absorbance of the control (abts+ solution with distilled water). a1 is the absorbance of the sample (insect tea extract or vitamin c solution with abts+ solution) the hydroxyl radical (-oh) scavenging ability of insect tea extracts the experimental procedure followed the methods described by xie (2014). in this study, various concentrations of insect tea extract and vitamin c solution (1.0 ml each) were combined with 1.0 ml of ph 7.4 phosphate buffer, 2.5 mmol/l pyrogallol solution, and 2.5 mmol/l ferrous sulphate solution. a 0.5 ml aliquot of a 20 mmol/l hydrogen peroxide solution was added to the mixture, which was then incubated at 37°c for 1 hour. the spectrophotometer was used to rapidly measure the absorbance at 536 nm (a2). in the case of blank samples, a1 was obtained by replacing the insect tea extract or vitamin c solution with 1.0 ml of absolute ethanol. control samples were prepared by substituting 1.5 ml of absolute ethanol for the hydrogen peroxide solution, insect tea extract, or vitamin c solution to obtain a0. the hydroxyl radical (-oh) scavenging rate (%) was calculated with the formula below: \text {hydroxyl radical (·oh) scavenging rate (%) =} \left [ \frac {(a2 a1)} {(a0 a1)} \right] \times 100 notes: a0 is the absorbance of the control (without hydrogen peroxide and insect tea extract or vitamin c solution). a1 is the absorbance of the test sample (with insect tea extract or vitamin c solution) data analysis all data were collected and analyzed using the spss statistical software. the significance of differences was set at p<0.05. results and discussion the total reducing power of the insect tea extracts and vitamin c the total reducing power of insect tea extract was evaluated using potassium ferricyanide, as shown in table 2. higher absorbance values indicate stronger antioxidant capacity. the results indicated a significant increase in absorbance values as the concentration of insect tea extract increased from 0.05 mg/ml to 0.40 mg/ml (p < 0.05), although they were still lower than those of vitamin c (figure 1). insect tea extracts ability to scavenge dpph free radicals the absorption spectrum of dpph radicals ranges from 390 nm to 780 nm. the detection method for this absorption is straightforward, fast, and highly consistent. dpph radicals are stable synthetic radicals, which are commonly used to assess the antioxidant properties of insect tea solutions (li et al., 2015). figure 2 displays the outcomes of insect tea's scavenging of dpph free radicals. the scavenging rate increases with the concentration of insect tea extract at the chosen low concentrations for this experiment. the scavenging rate increases by 62.28% when the concentration of insect tea extract reaches 0.40 mg/ml, compared to the scavenging rate of 29.23% at 0.05 mg/ml. the insect tea extract concentrations ranging from 0.05 mg/ml to 0.25 mg/ml exhibit statistically significant differences (p < 0.05). the scavenging rate of insect tea extract is consistently lower than that of vitamin c at all concentrations. however, in the concentration range of 0.30 mg/ml to 0.40 mg/ml, the scavenging rate of insect tea gradually approaches that of vitamin c (table 3). the scavenging of abts+· free radicals of insect tea extracts and vitamin c the scavenging of abts+• free radicals by insect tea extract is illustrated in figure 3. the antioxidant efficacy of insect tea in scavenging abts+• free radicals is enhanced after digestion and fermentation, even at low concentrations of the extract used in this experiment. the scavenging rate increases with the concentration of insect tea extract, peaking at 97.70% when the concentration is 0.40 mg/ml. this indicates a 72.28% increase in the scavenging rate compared to the rate of 25.42% at a concentration of 0.05 mg/ml. the scavenging rates for insect tea extract concentrations ranging from 0.05 mg/ml to 0.30 mg/ml exhibit statistically significant differences (p < 0.05). the scavenging activity difference between insect tea extract and vitamin c solution gradually diminishes (table 4) the hydroxyl radical (-oh) scavenging of insect tea extracts and vitamin c the antioxidant performance of insect tea extract solution can be evaluated by its ability to scavenge •oh radicals. the fenton reaction is the primary source of •oh in biological systems. the addition of a scavenger of •oh radicals to the reaction system allows for the sensitive detection of the direction of the chemical reaction through the colour change of the redox indicator ophenanthroline-ferrous ion. the solution's red colour lightens, indicating a reduction in ferrous ions and the scavenging of •oh radicals. figure 4 displays the results of the scavenging effect of insect tea extract on hydroxyl radicals (•oh). the scavenging rates of the chosen concentrations of insect tea extract in this experiment were all higher than that of vitamin c. the scavenging rate showed a positive correlation with concentration within the range of 0.05 mg/ml to 0.40 mg/ml. the scavenging rate increased by 58.88% when the concentration of insect tea extract reached 0.40 mg/ml, compared to the scavenging rate of 11.11% at a concentration of 0.05 mg/ml. the concentration gradients of insect tea extract at intervals of 0.1 mg/ml exhibited significant differences (p < 0.05) (table 5). agbioforum, 26(1), 2024 | 28 wu et al. evaluation of insect tea extracts' in vitro antioxidant activities: a comparative study with vitamin c table 2: the absorbance values of insect tea extracts and vitamin c according to respective concentrations. concentration (mg/ml) absorbance of insect tea extracts absorbance of vitamin c 0.05 0.206 ± 0.092 0.547 ± 0.207 0.10 0.429 ± 0.111 1.278 ± 0.250 0.15 0.593 ± 0.065 1.433 ± 0.083 0.20 0.702 ± 0.230 1.483 ± 0.168 0.25 0.796 ± 0.327 1.527 ± 0.202 0.30 0.931 ± 0.281 1.569 ± 0.172 0.35 1.075 ± 0.353 1.598 ± 0.130 0.40 1.211 ± 0.494 1.649 ± 0.111 figure 1: the reducing power of insect tea extracts (red line) and vitamin c (green line). table 3: the scavenging of dpph free radicals of insect tea extracts and vitamin c according to respective concentrations concentration (mg/ml) scavenging rate (%) of insect tea extracts scavenging rate (%) of vitamin c 0.05 29.23 ± 2.13 43.86 ± 16.86 0.10 46.04 ± 5.38 84.82 ± 13.01 0.15 60.43 ± 1.07 90.50 ± 1.74 0.20 75.45 ± 15.38 92.51 ± 1.82 0.25 84.52 ± 8.47 94.19 ± 1.29 0.30 88.16 ± 7.34 93.99 ± 0.83 0.35 91.33 ± 1.49 94.70 ± 1.11 0.40 91.51 ± 1.30 94.77 ± 1.29 figure 2: the scavenging of dpph free radicals of insect tea extracts (red line) and vitamin c (green line). table 4: the scavenging of abts+• free radicals of insect tea extracts and vitamin c according to respective concentrations. concentration (mg/ml) scavenging rate (%) of insect tea extracts scavenging rate (%) of vitamin c 0.05 25.42 ± 3.87 32.93 ± 19.14 0.10 42.23 ± 2.41 51.88 ± 25.58 0.15 55.60 ± 6.99 71.79 ± 48.86 0.20 66.75 ± 12.61 86.86 ± 34.63 0.25 73.86 ± 9.42 96.15 ± 16.55 0.30 86.59 ± 3.61 97.88 ± 9.14 0.35 94.04 ± 2.66 99.96 ± 0.18 0.40 97.70 ± 2.71 100.00 ± 0.00 figure 3: the scavenging of abts+• free radicals of insect tea extracts (red line) and vitamin c (green line). 0 1 2 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 a b so rb a n ce v a lu e（ o d ） concentration（mg/ml） 0% 50% 100% 150% 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 s ca v en g in g r a te (% ) concentration（mg/ml） 0% 50% 100% 150% 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 s ca v en g in g r a te （ % ） concentration（mg/ml） agbioforum, 26(1), 2024 | 29 wu et al. evaluation of insect tea extracts' in vitro antioxidant activities: a comparative study with vitamin c table 5: the scavenging of hydroxyl radicals (-oh) of insect tea extracts and vitamin c according to respective concentrations concentration (mg/ml) scavenging rate (%) of insect tea extracts scavenging rate (%) of vitamin c 0.05 11.11±9.05 8.76±14.91 0.10 17.64±15.86 15.04±11.78 0.15 27.90±14.37 17.23±24.99 0.20 35.64±16.51 17.58±23.42 0.25 43.50±23.23 20.69±30.92 0.30 46.80±12.74 25.00±18.52 0.35 60.95±12.95 28.11±18.28 0.40 69.99±12.98 32.70±21.32 figure 4: the scavenging of hydroxyl radicals (-oh) of insect tea extracts (red line) and vitamin c (green line). the current experiment confirms previous findings that insect tea extracts exhibit significant antioxidant activity in various reduction assays, including total reducing power, dpph free radical scavenging, abts+• free radical scavenging, and oh radical scavenging. the total reducing power assay demonstrated an increase in enhancing concentration of insect tea extract from 0.05 mg/ml to 0.40 mg/ml. higher concentrations, especially 40 mg/ml, exhibited higher mean absorbance values, indicating superior antioxidant activity (sun, 2021). the insect tea extract exhibited lower absorbance values compared to ascorbic acid. however, the increasing trend suggests that it is still a suitable reducing agent. the dpph free radical scavenging assay showed that the scavenging rate reached 91.51% at a concentration of 0.40 mg/ml for the insect tea extract. the insect tea extract exhibited a significant increase in free radical scavenging activities, from 29.23% at 0.05 mg/ml to 91.51% at 0.40 mg/ml. although the antioxidant capacity of the insect tea extract was lower than that of vitamin c, it showed a promising trend (ma et al., 2010). the abts+• free radical scavenging assay and experiment yielded consistent results, showing that increasing concentrations of insect tea extracts enhanced antioxidant efficacy. the extract exhibited a scavenging rate of 97.70% at a concentration of 0.40 mg/ml, which was significantly higher than the scavenging rate of 25.42% at a concentration of 0.05 mg/ml. this suggests that the extract is effective in neutralising abts+• radicals. the results were supported by the hydroxyl radical (•oh) scavenging assay, which showed that the insect tea extract had a higher scavenging rate than vitamin c at all tested concentrations. the scavenging rate at a concentration of 0.40 mg/ml was 69.99%, significantly higher than the observed rate of 11.11% at a concentration of 0.05 mg/ml. the observed differences in scavenging rates among the concentration gradients of insect tea extract (p < 0.05) provide evidence for the strong antioxidant properties of insect tea. the results indicate that insect tea extract has significant antioxidant properties that increase with concentration. this suggests that it could be a valuable natural source of antioxidants with potential health benefits {liu, 2013 #25}. conclusions free radicals are electrically charged chemical entities that are consistently active and have a destructive impact on the body. free radicals serve a specific physiological role and their production and degradation are normally balanced and connected to immunity, signal transduction, and energy transfer. however, it is crucial to prioritise protection against excessive free radicals, as they can contribute to the development of various diseases and accelerate the ageing process. antioxidants counteract the harmful effects by neutralising free radicals, as previously mentioned. the current synthetic antioxidants exhibit low effectiveness and toxic effects, leading to an increasing demand for natural antioxidants with minimal side effects that can be utilised in various fields. the substance is composed of insect components that contain architectural units such as flavonoids, polyphenols, and polysaccharides, which exhibit antioxidant properties. the antioxidant properties of these components can vary depending on their chemical structure. consequently, different antioxidant activities can be observed due to variations in the chemical constituents. this makes it challenging to fully evaluate the antioxidant activity of each component using a single method. the antioxidant effectiveness of substances is often evaluated in vitro using parameters such as reducing power, free radical scavenging, and scavenging of dpph•, abts+•, and •oh free radicals. this study evaluated the antioxidant activities of insect tea using various in vitro tests. the graphs demonstrate that increasing the volume of insect tea concentrate leads to higher total reducing power of the sample and enhanced ability to neutralise dpph•, abts+•, and •oh radicals. the insect tea extract, at a concentration of 0.40 mg/ml, demonstrated a total reducing power of 1.211. it also exhibited scavenging rates of 91.51%, 97.70%, and 69.99% against dpph•, abts+•, and •oh radicals, respectively. the results indicate a dose-response relationship, with the 0 0.2 0.4 0.6 0.8 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45s ca v en g in g r a te （ % ） concentration（mg/ml） agbioforum, 26(1), 2024 | 30 wu et al. evaluation of insect tea extracts' in vitro antioxidant activities: a comparative study with vitamin c antioxidant capacity of insect tea approaching that of vitamin c at higher concentrations. the results indicate that insect tea shows promise as a natural antioxidant and warrants further investigation and development. acknowledgement this work was supported by the 2022 guangdong provincial administration of traditional chinese medicine research project [grant number: 20222153] references afam, i. o. j., & rinah, k. n. 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thai nguyen, viet nam email: nguyenxuandiep@gmail.com tran ba uan dien bien college of economics and technologies (dcet), dien bien, viet email: bauandb@gmail.com vuong thi khanh huyen viet nam national university of agriculture (vnua), ha noi, viet nam email: vuongthikhanhhuyen@gmail.com *corresponding author email: nctiep@vnua.edu.vn the challenges posed by high population and poverty levels require the focused attention of researchers and policymakers. this article examines the effects of sustainable finance, agricultural growth, and digital agriculture on poverty reduction in vietnam. the study used population growth as the control variable in order to make predictions about poverty alleviation. the article utilised secondary data obtained from reputable sources like the world development indicators (wdi) and the organisation for economic cooperation and development (oecd), spanning the years 1991 to 2022. the article employed the dynamic autoregressive distributed lag (dardl) model to analyse the relationship between various constructs. the findings indicate that sustainable finance, agriculture growth, and digital agriculture are positively correlated with poverty alleviation in vietnam, while population growth shows a negative correlation. the study offers guidance to regulators on how to address poverty through sustainable finance, agricultural growth, and digital agriculture. keywords: sustainable finance, agriculture growth, digital agriculture, population growth, poverty alleviation introduction poverty is a state in which individuals or communities lack the necessary financial resources and essentials to meet basic human living standards. despite their potential to meet their basic needs, they lack the necessary capabilities. individuals or households experiencing poverty face inadequate housing and clothing, subsist on insufficient and unhealthy food, and lack access to clean water. lack of access to social services, such as medical attention and education facilities, is a pressing issue (maulu et al., 2021). poverty frequently leads to various societal issues, such as social discrimination, racism, injustice, increased crime rates, diminished human potential, unequal allocation of natural resources, higher disease and mortality rates, and reduced human capital development. hence, poverty poses a significant obstacle to the advancement of the economy, political stability, social harmony, and the well-being of individuals (singh & chudasama, 2020). addressing poverty is a crucial concern for community and economic regulators. it involves eradicating poverty at its core, preventing its widespread occurrence, and reducing the number of people living in poverty. by addressing poverty, communities can be protected from social problems, economic progress can be maintained, and individuals can experience a harmonious and prosperous existence (bruckner et al., 2022). poverty stems from various factors, such as unemployment, inadequate income, climate change, insufficient access to necessities, and limited natural resources (nawawi et al., 2020). therefore, implementing strategies such as sustainable finance, agricultural irrigation land, agricultural raw material exports, agricultural growth, and digital agriculture can prove to be impactful in addressing poverty. sustainable finance involves incorporating social, environmental, and governance factors into financing decisions, whether through investments or credit. financial institutions and other investors can incentivize customer firms to prioritise environmental and social responsibility by providing funds with conditions that promote sustainability. this encourages these firms to conduct their operations in a way that minimises negative impacts on the environment and mailto:hothihien@naue.edu.vn mailto:nctiep@vnua.edu.vn mailto:ntluong@ctu.edu.vn https://orcid.org/0009-0008-4303-5437 mailto:daothutra@hdu.edu.vn mailto:nguyenxuandiep@gmail.com mailto:bauandb@gmail.com mailto:vuongthikhanhhuyen@gmail.com mailto:nctiep@vnua.edu.vn agbioforum, 25(2), 2023 | 151 hien et al. — the impact of sustainable finance and agriculture growth on poverty alleviation: the role of digital agriculture in vietnam promotes social well-being. therefore, climate change is reduced, natural resources are improved, and economic development becomes sustainable, ultimately leading to poverty alleviation (su et al., 2021). the increase in agricultural irrigation land, agricultural raw material exports, and overall agricultural growth are what are driving the expansion of agricultural activities within nations. the agricultural sector, whether independently or through economic expansion, generates job prospects, enhances income levels, and caters to human necessities. according to xiao et al. (2022), poverty alleviation is a direct result of this phenomenon. digital agriculture involves the utilisation of digital technologies to carry out various agricultural processes. it enhances agricultural operations, enhances the quality of agricultural products, and promotes the growth of agriculture and agribusiness. improving the living standard of the people and alleviating poverty are potential outcomes in this situation (huang & tsai, 2021). the agricultural sector, whether independently or through economic expansion, generates job prospects, enhances income levels, and caters to human necessities. according to xiao et al. (2022), poverty alleviation is a direct result of this phenomenon. digital agriculture involves the utilisation of digital technologies to carry out various agricultural processes. it enhances agricultural operations, enhances the quality of agricultural products, and promotes the growth of agriculture and agribusiness. improving the living standard of the people and alleviating poverty are potential outcomes in this situation. in the past, vietnam was categorised among the world's most impoverished nations, with a per capita income of less than us$100 annually. in 2013, vietnam achieved middle-income status with a per capita income of us$1,910 (pham & mukhopadhaya, 2022). the poverty rate in the country has declined significantly over the years, dropping from 58% in 1993 to 28.9% in 2002, 14.5% in 2008, and approximately 12% in 2011. based on statistical estimates, it has been observed that approximately 28 million individuals have successfully escaped poverty within a span of two decades. based on statistical analysis, it has been observed that approximately 28 million individuals have successfully escaped poverty within a span of two decades. according to the 2014 global hunger index (ghi) report, vietnam is ranked 15th out of 81 countries grappling with the problem of hunger. by 2016, a small percentage of the population, 5.7%, was living below the poverty line. however, by 2019, the unemployment rate had been successfully reduced to 2.0%. the proportion of people living in slum areas decreased significantly, from 60.5% in 1992 to 13.8% in 2018 (thanh binh & ha, 2019). however, there is still significant progress needed in addressing the pressing issues of hunger, poverty, and the well-being of marginalised communities, such as people of colour, disabled individuals, the elderly, and those at risk of crime (nguyen et al., 2020). this study explores the relationship between various factors and poverty alleviation in vietnam. it focuses on sustainable finance, agriculture, irrigation land, agricultural raw material exports, agricultural growth, and digital agriculture. the study also considers population growth as a control variable. the current article provides valuable insights and stands out from the rest in the field of literature. in previous studies, researchers have examined the issue of poverty and explored the impact of sustainable finance, agricultural growth, and population growth on poverty reduction. unfortunately, there is currently no comprehensive study that analyses the impact of sustainable finance, agricultural growth, and population growth on poverty alleviation. this study emphasises the significance of sustainable finance, agricultural growth, and population growth in assessing poverty alleviation. furthermore, numerous studies have investigated the impact of agricultural sector growth on poverty alleviation, considering its crucial role in providing essential human needs. the current study examines the impact of the agricultural sector's growth on poverty alleviation by analysing variables such as agriculture irrigation land, agricultural raw material exports, agricultural growth, and digital agriculture. therefore, it offers a valuable contribution to the field of literature. additionally, this article provides a comprehensive analysis of sustainable finance, agricultural growth, and the impact of digital agriculture on poverty alleviation in vietnam. this study consists of five sections. the second part provides a literature review that examines the connections between sustainable finance, agriculture, irrigation land, agricultural raw material exports, agricultural growth, digital agriculture, population growth, and poverty alleviation. in the third section, a brief overview of the research methodology is provided. in the following section, research findings are extracted using analytical techniques. ultimately, the findings are examined, the implications for further research are explored, a conclusion is drawn, and any limitations are acknowledged. literature review numerous studies have explored the correlation between sustainable finance, agriculture, irrigation land, agricultural raw material exports, agricultural growth, and digital agriculture with poverty alleviation. however, the authors hold contrasting perspectives on these relationships. this section provides an overview of relevant studies to shed light on the relationship between the factors mentioned earlier. sustainable finance ensures that investments and credits are directed towards programmes that promote social wellbeing, environmental preservation, and the regulation of economic activities. firms prioritise sustainable finance, agbioforum, 25(2), 2023 | 152 hien et al. — the impact of sustainable finance and agriculture growth on poverty alleviation: the role of digital agriculture in vietnam stakeholder well-being, environmental protection, natural resource preservation, and job creation. as a result, individuals may experience an improvement in their socioeconomic status, potentially surpassing the poverty threshold (mhlanga et al., 2020). lee et al. (2023) conducted a study to look at the connections between sustainable finance, digital financial inclusion, and poverty reduction. data on sustainable finance, digital financial inclusion, and poverty alleviation in china from 2011 to 2019 were obtained at the provincial level. a heterogeneity analysis was conducted using quantile regression. the study suggests that when sustainable finance is allocated to disadvantaged clients, they are more inclined to implement socially responsible initiatives that enhance financial well-being and address their needs. sustainable finance plays a crucial role in addressing poverty. in their study, jiang et al. (2020) examine the impact of sustainable finance on poverty alleviation. the authors of this study selected 18 indicators from three dimensions—social, environmental, financial, and economic development—to measure the sustainable finance development index of china's 25 provinces and municipalities from 2004 to 2017. they applied the improved entropy method based on relevant theories regarding sustainable finance and poverty alleviation. the study suggests that sustainable finance enables business firms to regulate their practices in order to create a healthy working environment for employees. as a result, their medical conditions are managed, their ability to work effectively is enhanced, and their income is increased. as a result, the employees are spared from experiencing financial hardship. the agricultural sector plays a crucial role in providing essential resources such as food, clothing, employment, and raw materials for a country's population. however, the effectiveness of agricultural practices relies on the availability of land that can generate natural resources. the presence of irrigation infrastructure, such as pipes, canals, sprinklers, or other man-made systems, can significantly enhance the productivity and quality of agricultural land. expanding the area of irrigation land allows for increased agricultural activities. people can be confident in their access to both food and non-food items, according to a study by zhang et al. (2020). in their study, zhang et al. (2021) investigate the impact of an agriculture irrigation scheme on poverty alleviation in tanzania. for the research, a combination of qualitative and quantitative methods was employed. data was collected using structured questionnaires. data was collected through focus group discussions (fgds) and open-ended interviews. in-depth interviews were conducted with six key informants (kis). the data was analysed using spss version 16 to obtain descriptive statistics, such as percentages, frequencies, means, and differences. the findings suggest that implementing a successful irrigation scheme and expanding agricultural irrigation land can enhance land quality and promote productivity. the increase in agricultural output enhances overall economic productivity while reducing people's accessibility. as a result, poverty levels have declined. in their study, wang & li (2019) examine the relationship between agriculture, irrigation land, and poverty alleviation. the study focused on the project of improving agricultural land and reducing poverty in the agro-pastoral transition zone of the northern city. the study provides a clear explanation of how expanding agricultural irrigation land can effectively alleviate poverty within the country. agricultural firms engage in the trading of agricultural commodities at both domestic and global scales, like other sectors of the economy. exports of agricultural raw materials contribute significantly to meeting foreign agricultural demands and generate substantial foreign exchange for domestic firms. the enhanced financial situation resulting from the export of agricultural raw materials enables firms to boost agricultural productivity, leading to significant business expansion. this fulfils the domestic requirements and provides opportunities for citizens to achieve economic benefits through agricultural development. according to guo & wang (2021), it leads to a reduction in poverty within the nation. the study by sikandar et al. (2021) looks at the connections between agriculture raw material exports, foreign capital inflows, agriculture growth, and poverty reduction. fourteen developing states were chosen to gather global data on agriculture raw material exports, foreign capital inflows, agriculture growth, and poverty alleviation. data for these countries from 1990–2018 was collected using the databases of the world bank's world development indicators and the pen world table. the findings indicate that exporting agricultural raw materials leads to a significant influx of foreign capital, thereby increasing the potential for agricultural development. enhancing agricultural growth is crucial for addressing the needs of impoverished individuals and alleviating poverty. osabohien et al. (2019) conducted a study to examine the connections between agricultural raw material exports, agricultural development, employment creation, and poverty reduction. data on agriculture raw material exports, agriculture development, employment generation, and poverty alleviation were gathered from west african countries over a period of 17 years, from 2000 to 2016. an econometric technique called the generalised method of moments (gmm) was employed to analyse the data and derive outcomes. the findings suggest a positive correlation between the rise in exports of agricultural raw materials and accelerated agricultural growth, leading to a decrease in poverty levels. agriculture plays a crucial role in any economy. this source plays a crucial role in the production of natural resources, which are essential for food consumption, food processing, and supporting various industries by providing infrastructure and raw materials. the expansion of the agriculture sector addresses food shortages and helps alleviate housing and clothing challenges, thereby agbioforum, 25(2), 2023 | 153 hien et al. — the impact of sustainable finance and agriculture growth on poverty alleviation: the role of digital agriculture in vietnam contributing to economic stability. the growth of agriculture also leads to job creation, either through increased agricultural practices or through the expansion of agro-based industries. therefore, the rapid expansion of agriculture can lead to a decrease in poverty (madi et al., 2020). in their study, bathla et al. (2020) examined the relationship between agricultural growth and poverty alleviation. this study utilised state-level data and nationally representative data for the analysis. an analysis of public expenditures in economic and social services, government intervention in agriculture, public investment, and input subsidies is used to measure the impact on agricultural productivity. the study suggests that in nations where the government allocates a portion of its tax revenue towards supporting agricultural development and providing economic and social services, there has been a rise in agricultural productivity, and efforts have been made to enhance the quality of agricultural products. it contributes to the availability of resources and products for public use, meeting basic needs, and improving living standards. therefore, it is plausible to expect a significant reduction in poverty. heger et al. (2020) examine the relationship between agricultural growth, irrigation, soil fertility, vegetation quality, and poverty reduction. the authors utilised a unique global panel dataset that connects land ecosystem measurements with poverty statistics derived from surveys and censuses. the study utilised quasiexperimental methods to assess the impact of land improvements on poverty reduction. the study suggests that the rise in agricultural growth enhances agricultural strategies, production, and the supply of agricultural products to the public. it contributes to the reduction of poverty. today, organisations across various economic sectors utilise digital technologies and procedures to carry out a multitude of functions. in the field of agriculture, digital technologies are being employed to streamline agricultural practices. these technologies effectively address agricultural challenges and significantly enhance productivity in the field. meeting the basic needs of individuals is crucial to preventing poverty (chao et al., 2021). in a recent study conducted by jinyi & chunyang (2020), the focus was on analysing the impact of digital agriculture and digital inclusive finance on poverty alleviation in rural areas. the analysis of digital agriculture, digital inclusive finance, and poverty alleviation in china included all 31 provinces as the study sample. the study analysed panel data from 31 provinces across the years 2011 to 2015. the study asserts that the implementation of digital systems in all stages of crop production and animal breeding can lead to significant growth in the agriculture sector and contribute to poverty alleviation. in their recent study, lajoie-o'malley et al. (2020) explore the interconnectedness of digital agriculture, sustainable food systems, and poverty alleviation. authors searched fao (fao.org/documents), world bank (open knowledge repository), and oecd (oecd ilibrary) document repositories to collect information for digital agriculture, sustainable food systems, and poverty rates. the study highlights the positive impact of digital agriculture on poverty reduction through agricultural growth. a recent article by porciello et al. (2022) explores the connection between digital agricultural services, agricultural awareness, and poverty alleviation in lower and middle-income countries. a scoping review was conducted using a methodology aligned with the widely recognised prisma-scr. agriculture firms that utilise digital technologies have shown improved performance and have made significant contributions to poverty alleviation. initiatives such as sustainable finance, agriculture irrigation land, agricultural raw material exports, agricultural growth, and digital agriculture have been implemented to address poverty in the region. certain factors, such as population growth, have detrimental effects on the environment, strain resources, and hinder economic growth. consequently, poverty within the region increases or poses obstacles to poverty alleviation (van le et al., 2022). in sargison's (2020) study, the focus was on the relationship between population growth and poverty alleviation. the study indicates that every country possesses a finite number of natural resources or a restricted capacity to generate additional resources. it effortlessly fulfils the essential requirements of a particular demographic. if the population growth rate continues at its current pace, the demand for resources to meet basic human needs will rise accordingly, often surpassing the available supply. insufficient resource supply leads to individuals experiencing poverty as they struggle to meet their basic needs. therefore, the unregulated expansion of the population hinders efforts to alleviate poverty. the article by erlando et al. (2020) explores the impact of population growth on poverty alleviation. when the population experiences rapid growth, there is an increase in the number of children or infants within the population. in this scenario, there is a significant imbalance between unproductive expenditures and poverty alleviation. research methods this article examines the effects of sustainable finance, agricultural growth, population growth, and digital agriculture on poverty reduction in vietnam. the article utilised secondary data obtained from reputable sources such as wdi and the oecd, spanning the years 1991 to 2022. the article established the equation given below: 𝑃𝑉𝐴𝑡 = 𝛼0 + 𝛽1𝑆𝐹𝑡 + 𝛽2𝐴𝐼𝐿𝑡 + 𝛽3𝐴𝑅𝑀𝐸𝑖𝑡 + 𝛽4𝐴𝐺𝑡 + 𝛽5𝐷𝐴𝑡 + 𝛽6𝑃𝐺𝑡 + 𝑒𝑡 (1) where; pva = poverty alleviation t = time period agbioforum, 25(2), 2023 | 154 hien et al. — the impact of sustainable finance and agriculture growth on poverty alleviation: the role of digital agriculture in vietnam sf = sustainable finance ail = agricultural irrigation land arme = agricultural raw material exports ag = agricultural growth da = digital agriculture pg = population growth the article focused on poverty alleviation, specifically measuring it with the poverty head count ratio at the national level as a dependent variable. furthermore, the article employed three distinct variables to analyse the subject matter. these variables included sustainable finance, which was measured using the global green finance development index. additionally, agricultural growth was measured by examining the percentage of agricultural irrigation land in relation to total agricultural land, as well as the percentage of agricultural raw material exports in relation to manufactured exports. lastly, the variable of digital agriculture was assessed by examining the percentage of high-technology exports in relation to manufactured exports. additionally, the article incorporated a control variable called population growth, which was measured as the annual percentage change in population. the measurements and variables are provided in table 1. table 1: variables and measurements. s# variables measurement sources 01 poverty alleviation poverty head count ratio at national poverty (% of population) wdi 02 sustainable finance global green finance development index oecd 03 agricultural growth agricultural irrigation land (% of total agricultural land) wdi agricultural raw material exports (% of manufactured exports) wdi agricultural, forestry and fishing, value added (annual % growth) wdi 06 digital agriculture high-technology exports (% of manufactured exports) wdi 07 population growth population growth (annual %) wdi the article utilised descriptive statistics to analyse the specific details of the variables. furthermore, the article also analyses the correlation by utilising a correlation matrix. in addition, the article examines the presence of a unit root by employing the pp and adf and the equation given below: 𝑑(𝑌𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑌𝑡−1 + 𝑑(𝑌𝑡(−1)) + ɛ𝑡 (2) furthermore, the article employed the approach proposed by westerlund & edgerton (2008) to analyse the cointegration within the mode. the equations are given below: lmφ(i) = tφ̂i (r̂i/σ̂i ) (3) lmτ(i) = φ̂i/se(φ̂i) (4) in addition, the article employed the ardl model to analyse the relationship between the constructs. this method examines the associations in both the long and short term (nazir et al., 2018). this method effectively mitigates the adverse impacts of heteroscedasticity and autocorrelation on the outcomes (zaidi & saidi, 2018). the equation is given below: ∆𝑃𝑉𝐴𝑡 = 𝛼0 + ∑𝛿1∆𝑃𝑉𝐴𝑡−1 + ∑𝛿2∆𝑆𝐹𝑡−1 + ∑𝛿3∆𝐴𝐼𝐿𝑡−1 + ∑𝛿4∆𝐴𝑅𝑀𝐸𝑡−1 + ∑𝛿5∆𝐴𝐺𝑡−1 + ∑𝛿6∆𝐷𝐴𝑡−1 + ∑𝛿7∆𝑃𝐺𝑡−1 + 𝜑1𝑃𝑉𝐴𝑡−1 + 𝜑2𝑆𝐹𝑡−1 + 𝜑3𝐴𝐼𝐿𝑡−1 + 𝜑4𝐴𝑅𝑀𝐸𝑡−1 + 𝜑5𝐴𝐺𝑡−1 + 𝜑6𝐷𝐴𝑡−1 + 𝜑7𝑃𝐺𝑡−1 + ɛ𝑡 (5) the article employed the dardl model to analyse the relationship between various constructs. this approach effectively addresses the limitations of conventional ardl. jordan & philips (2018) recently developed this approach for time series data. the dardl equation is given below: ∆𝑃𝑉𝐴𝑡 = 𝛼0 + ∑𝛿1∆𝑃𝑉𝐴𝑡−1 + ∑𝛿2∆𝑆𝐹𝑡 + ∑𝛿3∆𝑆𝐹𝑡−1 + ∑𝛿4∆𝐴𝐼𝐿𝑡 + ∑𝛿5∆𝐴𝐼𝐿𝑡−1 + ∑𝛿6∆𝐴𝑅𝑀𝐸𝑡 + ∑𝛿7∆𝐴𝑅𝑀𝐸𝑡−1 + ∑𝛿8∆𝐴𝐺𝑡 + ∑𝛿9∆𝐴𝐺𝑡−1 + ∑𝛿10∆𝐷𝐴𝑡 + ∑𝛿11∆𝐷𝐴𝑡−1 + ∑𝛿12∆𝑃𝐺𝑡 + ∑𝛿13∆𝑃𝐺𝑡−1 + ɛ𝑡 (6) research findings the article utilised descriptive statistics to analyse the specific details of the variables. the results indicate that the mean value of pva was 8.446, sf was 75.352, ail was 24.259, and arme was 2.429. furthermore, the findings indicate that the mean ag value was 19.883, da was 1.198, and pg was 3.557. these results are given in table 2. table 2: descriptive statistics variable obs mean std. dev. min max pva 32 8.446 1.774 2.480 9.201 sf 32 75.352 24.329 35.47 111.819 ail 32 24.259 2.000 21.109 27.571 arme 32 2.429 0.839 1.300 4.357 ag 32 19.883 15.302 8.678 53.689 da 32 1.198 0.374 0.735 2.138 pg 32 3.557 1.187 0.486 6.878 furthermore, the article analyses the correlation by utilising a correlation matrix. the findings indicate that sustainable finance, agriculture growth, and digital agriculture are linked to poverty alleviation in vietnam. the results of the study indicated that population growth in vietnam has a negative correlation with poverty alleviation and a positive correlation with poverty head count. the results are given in table 3. table 3: correlation matrix variables pva sf ail arme ag da pg pva 1.000 sf -0.590 1.000 ail -0.638 0.996 1.000 arme -0.221 0.255 0.232 1.000 ag -0.766 0.863 0.873 -0.147 1.000 da -0.404 -0.824 -0.824 -0.442 -0.516 1.000 pg 0.114 -0.432 -0.423 -0.161 -0.358 0.267 1.000 agbioforum, 25(2), 2023 | 155 hien et al. — the impact of sustainable finance and agriculture growth on poverty alleviation: the role of digital agriculture in vietnam in addition, the article examines the presence of a unit root using the pp and adf tests. the results suggest that pva, sf, ail, da, and pg do not exhibit a unit root at this level, while arme and ag do not exhibit a unit root at the first difference. these results are given in table 4. table 4: unit root test adf pp series level first difference level first difference pva -4.092*** ------4.328*** ----- sf -3.288*** ------3,983*** ----- ail -3.102*** -----4.327*** ----- arme ------6.595*** ------3.212*** ag ------5.901*** ------4.397*** da -3.299*** ------3.222*** ----- pg -4.336*** ------3.191*** ----- furthermore, the article employed the approach proposed by westerlund & edgerton (2008) to analyse the co-integration in the model. the findings indicate that the p-values are below the threshold of 0.05, suggesting the presence of cointegration. these results are given in table 5. table 5: co-integration test model no shift mean shift regime shift test stat p-value test stat p-value test stat p-value lmτ -5.499 0.000 -4.333 0.000 -5.445 0.000 lmφ -5.444 0.000 -4.320 0.000 -5.876 0.000 the article employed the dardl model to analyse the relationship between various constructs. the findings indicate that sustainable finance, agriculture growth, and digital agriculture are linked to poverty alleviation in vietnam. the results of the study indicated that population growth in vietnam is negatively correlated with poverty alleviation and positively correlated with poverty headcount. these results are given in table 6. table 6: dynamic ardl model variable coefficient t-statistic prob. ect -0.432*** -3.201 0.003 𝑆𝐹𝑡−1 -1.291** -2.101 0.032 sf -1.281*** -5.491 0.000 𝐴𝐼𝐿𝑡−1 -4.382*** -3.901 0.000 ail -0.657*** -3.099 0.005 𝐴𝑅𝑀𝐸𝑡−1 -0.474*** -4.019 0.000 arme -0.654*** -3.091 0.000 𝐴𝐺𝑡−1 -2.019** -2.001 0.043 ag -0.463** -2.003 0.041 𝐷𝐴𝑡−1 -1.928*** -5.593 0.000 da -1.356*** -5.402 0.000 𝑃𝐺𝑡−1 0.657*** 3.291 0.001 pg 0.741*** 4.333 0.000 cons 3.289*** 5.494 0.000 r square = 63.289 stimulation = 5000 discussions the findings indicate a positive correlation between sustainable finance and poverty alleviation. the findings of nugroho et al. (2019) support the notion that when financial institutions in a country implement policies to offer sustainable finance to their clients, commercial entities can enhance their affordability and engage in sustainable activities. the outcome is a rise in both the production of goods and the overall national income. this is the reason for the decrease in the poverty line. the results of this study are consistent with research by tamanni & haji besar (2019), which looks at the relationship between sustainable finance and poverty reduction. the study suggests that the implementation of sustainable finance enables business organisations to adopt environmentally friendly practices, address environmental challenges, and maintain their economic contributions to the country. it is possible to exert control over poverty in this scenario. the findings indicate a positive correlation between agricultural irrigation land and poverty alleviation. the findings of yang & zhong (2022) provide support for the idea that agricultural firms can increase agricultural land use by successfully acquiring a larger area for irrigation. large-scale agricultural projects require extensive land utilisation. as agriculture expands, it leads to an increase in people's income levels and contributes to poverty alleviation. the results of this study are consistent with those of liu & wang's (2019) research, which shows that an increase in agricultural irrigation land leads to an increase in agricultural activities and a rise in employment opportunities. the outcome is the alleviation of poverty. the findings indicate that exports of agricultural raw materials are linked to the reduction of poverty. the findings of hayat et al. (2019) provide evidence that the growth in agricultural raw material exports has a positive impact on both international trade and domestic agrarian production, leading to increased financial resources from foreign economies. in this scenario, individuals can effectively address financial challenges and experience the benefits of poverty alleviation. the results are consistent with research by nambiar (2019), which shows that an increase in agricultural raw material exports causes growth in the domestic agricultural sector. the result is an increase in job prospects and a reduction in poverty. the findings indicate that there is a direct correlation between agricultural growth and the reduction of poverty. the findings of arsyad et al. (2020) provide support for the relationship between agricultural growth and poverty alleviation. the study emphasises that increased agricultural growth leads to expanded activities in various agricultural departments and a rise in employment opportunities. this contributes to the reduction of poverty within the nation. the findings support omodero's (2019) research, which suggests a positive relationship between agricultural growth and both food production and food processing. the growing availability of food helps alleviate poverty within the country. the findings indicate a clear correlation between digital agriculture and the reduction of poverty. the findings are consistent with research by chao et al. (2021), which claims that the integration of digital agriculture by agricultural companies facilitates the expansion of agricultural operations, improves product quality, and generates significant revenue from sales. firms in a agbioforum, 25(2), 2023 | 156 hien et al. — the impact of sustainable finance and agriculture growth on poverty alleviation: the role of digital agriculture in vietnam stronger financial position can offer their employees an improved quality of life. therefore, the implementation of digital agriculture plays a significant role in reducing poverty. the research by fabregas et al. (2019) supports the findings of this study. the authors argue that the adoption of digital technologies in agricultural practices by firms can enhance outcomes and boost productivity for domestic and economic purposes. therefore, poverty is reduced. the findings indicate that there is a correlation between population growth and poverty reduction. the findings of nabi et al. (2020) provide support for the notion that a rapid increase in population necessitates an increased demand for essential human needs and employment prospects. insufficient resources within the country are unable to meet the growing demands, resulting in a rise in poverty rates. the findings are consistent with research by desta (2021), which contends that an increase in population causes a decline in per capita national income and an expansion of poverty across different regions. implications the current study holds immense importance for researchers, as it guides them in their academic pursuits due to its valuable literary contributions. this study investigates the effects of sustainable finance, agriculture irrigation land, agricultural raw material exports, agriculture growth, and digital agriculture on poverty alleviation. the study also examines the role of population growth as a control variable in poverty alleviation. this study examines the impact of sustainable finance, agriculture irrigation land, agricultural raw material exports, agriculture growth, and digital agriculture on poverty alleviation in vietnam. this article holds great importance for economies as it tackles the pressing issue of poverty, a significant social and economic challenge. the study provides guidance to the country's regulators on addressing poverty. the study proposes that the government should actively promote sustainable finance and ensure its accessibility to the population, thereby enabling poverty alleviation. the study suggests that increasing agricultural irrigation land could help reduce poverty in the country. the paper proposes a solution for economists to focus on increasing agricultural raw material exports to reduce poverty. the study proposes that economists and regulators from different countries should collaborate to promote agricultural growth, which can contribute to poverty alleviation. the study suggests that promoting digital agriculture is beneficial for the agriculture sector. it has the potential to mitigate poverty. furthermore, the study suggests that effective population control is crucial to reducing poverty levels within the country. the study offers guidance to regulators on how to address poverty through sustainable finance, agricultural growth, and digital agriculture. conclusion the study aimed to analyse the effectiveness of sustainable finance, agriculture irrigation land, agricultural raw material exports, agriculture growth, and digital agriculture in poverty alleviation. it also examined the impact of population growth in this context. the statistics of vietnam were utilised to collect information on the selected variables and conduct analysis. the research findings indicate a strong correlation between sustainable finance, agriculture irrigation land, agricultural raw material exports, agriculture growth, and digital agriculture with poverty alleviation. the study highlights the positive correlation between financial institutions offering sustainable finance and the resulting sustainable economic development and poverty alleviation in the country. the findings also indicate that expanding the area of land used for agriculture irrigation has a positive impact on the productivity of agriculture and agribusinesses, ultimately resulting in a decrease in poverty levels. the study findings suggest that the rise in exports of agricultural raw materials contributes to the inflow of foreign income. in the end, economic growth is increasing, and poverty is being reduced. the findings indicate that agricultural growth plays a significant role in meeting essential human needs, generating employment opportunities, and stimulating economic development. therefore, it is feasible to alleviate poverty. the findings indicate that the increasing adoption of digital technology in agriculture has resulted in expanded agricultural practices and economic benefits for individuals, ultimately contributing to poverty reduction. the research findings indicate that population growth has a detrimental effect on efforts to alleviate poverty. as the population grows, the available resources within a country become insufficient to adequately meet the needs of its inhabitants, resulting in a rise in poverty levels. limitations this study has limitations. future researchers may overcome these constraints. the study only addresses agriculture's poverty-reduction potential. the text does not address other economic sectors or socially beneficial programmes, which are crucial for economic growth and poverty reduction. thus, the study's findings may not solve poverty. future academics will likely consider how sustainability programmes reduce poverty across all economic sectors. many undeveloped and developing nations still struggle with poverty. the global impact of this issue on economic progress and individual welfare is well known. this study on poverty alleviation in vietnam is narrowly applicable. future 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(2021). the contribution of cooperative irrigation scheme to https://doi.org/10.1016/j.scs.2018.04.034 agbioforum, 25(2), 2023 | 159 hien et al. — the impact of sustainable finance and agriculture growth on poverty alleviation: the role of digital agriculture in vietnam poverty reduction in tanzania. journal of integrative agriculture, 20(4), 953-963. zhang, d., wang, w., zhou, w., zhang, x., & zuo, j. (2020). the effect on poverty alleviation and income increase of rural land consolidation in different models: a china study. land use policy,. doi: https://doi.org/10.1016/j.landusepol.2020.10498 9 agbioforum, 26(1): 9-17. © 2024 agbioforum hu & masron. — exploring the impact of agricultural biotechnology on green investment and economic growth exploring the impact of agricultural biotechnology on green investment and economic growth: a comparative study under the rcep framework hengyi hu* doctoral candidate, school of management, universiti sains malaysia, penang, malaysia,11800 orcid id: https://orcid.org/0009-0006-6468-2495 email: huhengyi1992@student.usm.my tajul ariffin masron assistant professor, school of management, universiti sains malaysia, penang, malaysia, 11800 orcid id: https://orcid.org/0000-0002-8564-2402 email: tams@usm.my these days, countries are increasingly recognising the need for economic growth and green investment in response to significant environmental degradation. this aspect requires recent studies and policymakers' attention. this paper examines the effects of agricultural biotechnology on green investment and economic growth in china, specifically within the framework of the regional comprehensive economic partnership (rcep). the study collected secondary data on china from 2003 to 2022 from the world development indicators (wdi). the study examines the relationship between agricultural biotechnology, green investment, and economic growth through the use of an autoregressive distributed lag model (ardl). it then conducts empirical analysis and verification to support its findings. the findings suggest a strong correlation between agricultural biotechnology, green investment, and economic growth in china. the study assists policymakers in formulating policies that promote green investment and economic growth by utilizing efficient agricultural biotechnology. keywords: agricultural biotechnology, green investment, rcep, economic growth. introduction currently, thanks to advancements in statistics and communication technologies, the digital service industry is currently driving the progress of global trade in a novel manner. in addition to their efficiency in facilitating trade, e-commerce platforms also contribute to reducing transaction costs. however, the rise of digital service trade is slowly challenging the existing global labour division and distribution of benefits. simultaneously, countries have begun to showcase variations in cooperation rules, content, and forms of digital service trade due to disparities in the comparative advantages of the digital economy. regional integration has emerged as a crucial aspect of the current digital marketing landscape, highlighting the profound new features of economic globalisation (zhang, shao, han, & chang, 2022). the emergence of digital service trade is revolutionising the creation of global value, serving as a catalyst for the growth of global trade, and expediting the transformation of international trade patterns. according to the ministry of commerce's white paper on digital trade development, there was a significant increase in international digital carrier exchange export quantity in 2019, reaching a staggering 3,192.59 billion us dollars. this growth significantly exceeded the surge in trade in goods (zhang & lis, 2020). with a diverse population of 2.3 billion, a gdp of 23 trillion us dollars, and an additional value of 10.4 trillion us dollars, rcep member countries form the world's largest free trade community. they have a significant influence and potential for improving quality (koondhar et al., 2021). the signing of the rcep will enhance the monetary integration system in the asia-pacific region, establish a digital alternative financial network, and collectively address the downward pressure on the global economy. the total exports of digital service trade among rcep member states in 2019 amounted to 511.52 billion us dollars, showing a year-on-year growth rate of nearly 8%, surpassing the global average (chen, shuai, zhang, & wu, 2020). the global competitiveness of digital providers is constantly improving. however, there is still a significant disparity compared to developed nations. the e-commerce chapter of the rcep agreement includes provisions for cross-border ecommerce, restrictions on laptop computer localization, and economic services. these provisions aim to promote industrial development and protect the sovereignty of developing countries (zhu & huo, 2022). in recent years, the three major advancements in agriculture have provided significant momentum for our nation's agricultural progress. china's agricultural technological innovation has experienced a decline in its role in the financial growth of the farming sector (liu, zhu, & wang, 2021). due to its poor quality, agricultural technology innovation has historically lacked effective and sustainable input mechanisms. currently, china's investment in agricultural research is significantly lower compared to other industries. the investment intensity is only 0.56% compared to 2.87% in other sectors. additionally, when compared to developed countries, china's agricultural research investment is only equivalent to 20% of what developed countries invest. however, agriculture is a demanding industry that requires a significant amount of labour and capital. it also has noticeable effects on the surrounding environment, unlike other industries. compared to other sectors, scientific research activities have a more pronounced social aspect (munawar, ul qamar, mustafa, khan, & joyia, 2020). the primary factor contributing to this situation is the difficulty in attaining exclusivity in the implementation of agricultural technology. the lack of a robust intellectual property protection system hampers investment in agricultural technology innovation. in order to foster agricultural technology innovation and drive technological progress in china, it is essential to address the shortcomings in the intellectual property protection system and the agricultural scientific research system. this calls for a collaborative https://orcid.org/0009-0006-6468-2495 mailto:huhengyi1992@student.usm.my https://orcid.org/0000-0002-8564-2402 mailto:tams@usm.my agbioforum, 26(1), 2024 | 10 effort between the government, national public scientific research units, and social enterprises and institutions to increase research and development in agricultural technology innovation. it is essential to consider how to incorporate technology into the agricultural production process, secure funding for rural technology innovation research and development, and efficiently allocate resources to enhance agricultural science and technology and agricultural productivity (fu et al., 2021). investing in green initiatives serves multiple purposes. it helps combat environmental pollution, preserves the balance of ecosystems, conserves resources, and promotes sustainable economic and social development. additionally, it aligns with the national policy of safeguarding environmental resources and fostering the harmonious growth of the economy (gatto, daniotti, & re, 2021). currently, the significance of green investment in the realm of modern investment and financing lies in its crucial contribution to the preservation of long-term interests and the sustainable development of human society. china's digital trade governance efforts will give the country a competitive edge and foster a positive external environment for the growth of its digital economy. simultaneously, it offers valuable references to bolster research and development of agricultural technology across different disciplines in our nation. this will enhance the vigour of technological innovation and facilitate the widespread adoption of agricultural technology in the coming years. the regional comprehensive economic partnership (rcep) agreement is a free-exchange settlement involving 15 countries. asean international locations initiated and led it in 2012, with participation from china, south korea, australia, japan, and new zealand. the 10 asean global places consist of indonesia, singapore, brunei, vietnam, malaysia, the philippines, thailand, cambodia, laos, and myanmar. formally established in november 2020, the rcep encompasses a population of approximately 3.5 billion individuals and boasts a combined gdp of $23 trillion. this accounts for roughly one-third of the global total and solidifies its position as the largest free trade zone in the world (khan, murshed, dong, & yang, 2021). in the field of digital exchange in services, the rcep has important objectives. firstly, it aims to strengthen political trust among the parties involved and provide new momentum in the fight against the global economic downturn. secondly, it seeks to enhance cooperation to achieve mutual recognition of digital trade regulations in the asia-pacific region and establish institutional guarantees for the movement of digital products and services in the area. thirdly, it is important to lower the cost of enhancing digital company trade within the region and establish a conducive environment for the growth of digital enterprises (bashir et al., 2022). figure 1: recp development. this paper examines the current state of agricultural biotechnology research in relation to recp. it investigates the influence of agricultural biotechnology on green investment and analyses economic data from china between 2003 and 2022. additionally, it develops a quality index for china's economic growth and explores the effects of agricultural biotechnology on the quality of economic growth. the current chapter delves into the study background, while the second chapter provides a comprehensive review of past literature. the third chapter outlines the research methodology employed, while the fourth chapter presents the findings of the study. finally, the last chapter engages in discussions regarding the results, study implications, and future directions. literature review during the past four decades of reform and opening up, china's agricultural scientific research system has experienced significant growth. the development of china's agricultural scientific research system is closely linked to the reform of its extensive framework, which can be broadly categorised into four distinct stages. the initial stage involves the process of healing and making progress. during this period, there was a significant increase in the number of agricultural scientific research institutions in china, and the number of personnel involved in agricultural scientific research grew from 22,000 in 1979 to 102,000 in 1985. next, we have the industrial aspect of agricultural research (yaqoob et al., 2023). nowadays, agricultural research departments and institutions have become more self-sufficient by engaging in incomegenerating activities, rather than relying solely on government funding. due to the intense competition in the market, there has been a decline in the number of scientific researchers. nevertheless, the market-oriented mechanism has significantly enhanced the efficiency of agricultural scientific research. following 1997, there was a significant shift in rural research tools and a surge in technological advancements in the agricultural sector. at this stage, it was necessary to transform agricultural research agbioforum, 26(1), 2024 | 11 hu & masron. — exploring the impact of agricultural biotechnology on green investment and economic growth institutions into centres focused on social welfare, scientific advancements, and technological development. the goal was to establish a modern scientific research system with a well-defined classification, efficient operations, and a flexible mechanism. the emergence of agricultural firms as the central entity of scientific research provided a strong impetus for the commercialization of agricultural research (khan, nouman, & ullah, 2023). since entering the twenty-first century, china's agricultural development has gradually shifted from labour-intensive production to the application of advanced agricultural technology in manufacturing. throughout the years, china's central report no. 1 has emphasised the need to strongly promote the advancement of agricultural science and technology. in 2007, the no. 1 central report proposed for the first time to "promote agricultural scientific and technological innovation and give a boost to the scientific and technological guide for the development of presentday agriculture." the report suggests that there is a need for significant improvement in funding for agricultural research. it also emphasises the importance of strengthening the innovation capacity of national and regional agricultural research facilities (naseem, hu, shi, mohsin, & jamil, 2023). with a focus on enhancing the innovation capability of agricultural science and technology, the no.1 central report 2010 emphasised the need to improve the popularisation capability of agricultural technological know-how and accelerate the development of farm popularisation and software systems. furthermore, it is important to prioritise teaching fundamental skills in agricultural science and technology, establish a variety of key laboratories and foundational platforms in the field of agriculture, and effectively distribute advanced manufacturing technologies to support agricultural production at the grassroots level (raihan, ibrahim, & muhtasim, 2023). in 2018, the no. 1 central file introduced the "rural revitalization strategy" which emphasised the need to focus on enhancing the manufacturing of high-end agricultural equipment and gear to modernise china's agriculture. it also advocated for the adoption of "digital agriculture" to promote the application of internet of things technology in the agricultural sector (raihan, 2023). china currently promotes the establishment of contemporary agricultural industrial parks to facilitate agricultural modernization. the establishment of modern agricultural industrial parks is seen as a crucial step in addressing the imbalance and inadequacy in china's rural development. it serves as a key initiative in effectively addressing the needs of the "three rural areas" in the new era, starting from the national to local government levels. the sichuan provincial authorities have put forward a plan to build over 1,000 demonstration parks for agricultural enterprise integration at various levels within the province by 2022. they are also actively working towards establishing several national modern agricultural industrial parks. hebei province has put forward a plan to build and enhance 36 modern agricultural parks at the provincial level (shao, 2024). green investment encompasses various aspects of environmental pollution treatment, including investment in facilities, equipment, and expenses related to environmental protection. this includes investments in sewage discharge and solid waste treatment, as well as efficient resource development and economic utilization. such investments involve measures such as energy saving, material saving, water saving, and land saving (li et al., 2023b). green investment refers to promoting increased investment in environmentally friendly initiatives. the deduction will be made from the total amount of existing social investment, specifically targeting ineffective or negative investment that is not "green," as well as investment that is not beneficial or even detrimental to human survival and development. green investment is a type of investment that reflects people-oriented and sustainable economic and social development, as well as the scientific concept of development. the concept of the "green vote" refers to the voting behaviour and preferences of individuals who prioritise environmental issues. a higher proportion of "capital" in total social investment leads to increased effective and beneficial investment, resulting in greater contributions to human social development and healthy economic growth (fang, 2023). the term "green" refers to the consideration of environmental pollution control, ecological protection, and the promotion of sustainable economic and social development in investment and financing behaviour. it plays a guiding role in the management of social and economic resources. green investment stands out from traditional investment and financing due to its strong focus on the benefits of the human society's living environment. the implementation of this measure will contribute to the preservation and conservation of the environment. the effectiveness of an organization's activities is determined by how efficiently it utilises its resources. economic entities should prioritise the balance of natural ecology, minimise environmental pollution, conserve natural resources, and protect the long-term interests of human society and its development. the concept emphasises the integration of economic activities, environmental protection, and ecological balance to achieve sustainable economic and social development (lei, yang, & qin, 2023). china's agricultural technological know-how innovation has historically lagged behind industrial science innovation and urbanisation. this lag can be attributed to historical and cultural factors. in the past, the shift in agricultural employment has been slower compared to changes in the industrial structure (yang & solangi, 2024). for a long time, the proportion of china's rural output price in gdp has been lower than the percentage of the agricultural workforce in the total population, which is about 20%. additionally, the transformation of employment structure has been slower than the change in industrial structure. as a result, there is a significant amount of surplus labour idle in agricultural production. this situation has led to a lack of motivation for china's scientific research institutions to carry out research and development of agricultural innovation technology. there should be a greater openness in the nation-state to adopt advanced agricultural techniques. in this scenario, the rural population was predominantly preserved, which hindered the advancement of agricultural technology (li, nanseki, agbioforum, 26(1), 2024 | 12 hu & masron. — exploring the impact of agricultural biotechnology on green investment and economic growth chomei, & kuang, 2023a). the rapid development of agricultural technology is not only a driving force for agricultural growth, but also a crucial guarantee for advancing china's national economy. since its establishment over 70 years ago, china's agriculture has undergone a significant transformation, shifting from a reliance on valuable resources and labour to a more scientific and capital-intensive approach. over the years, china has made significant progress in the agricultural sector, transitioning from a state of scarcity to becoming a dominant player in the production of food (tang, cao, guo, & li, 2023). in recent years, china has experienced a significant increase in urbanisation. the rate of urbanisation has steadily risen, with the percentage of city residents reaching 49.7% in 2010 and 63.89% in 2020. the rapid increase in urban population has resulted in a significant decrease in the number of people living in rural areas (li et al., 2023b). in light of these circumstances, finding ways to improve agricultural manufacturing effectiveness by advancing agricultural technology and reducing the labour force has become a crucial focus for our agricultural development. however, in 2019, the contribution fee of agrarian science and science development in china reached 59.2%, indicating the impact of rural modernization on agricultural production. additionally, there was a comprehensive mechanisation fee for crop cultivation and harvest (jin, xu, zhu, & li, 2023). in 2020, the us has witnessed a remarkable increase in the contribution of agricultural scientific and technological growth. this increase has reached a new stage of 60%, which is a significant improvement compared to the 15.5% recorded in 1996. the development of agricultural science and the adoption of recent applied sciences have played a crucial role in maintaining a steady growth in grain output, despite the relatively unchanged grain sown output (raihan, 2023). research methods the paper examines the effects of agricultural biotechnology on green investment and economic growth in china, specifically within the framework of rcep. the researchers have utilised secondary sources of data collection, specifically the wdi, to extract data spanning from 2003 to 2022. the equation is given as under: 𝑄𝐸𝐺𝑡 = 𝛼0 + 𝛽1𝑈𝑆𝑇𝐼𝑡 + 𝛽2𝐸𝑈𝐴𝑡 + 𝑒𝑡 (1) 𝑈𝐼𝐴𝑡 = 𝛼0 + 𝛽1𝑈𝑆𝑇𝐼𝑡 + 𝛽2𝐸𝑈𝐴𝑡 + 𝑒𝑡 (2) where, qeg = quality of economic growth uia = urban innovation ability t = time period usti = urban science and technology importance eua = proportion of employees in urban agriculture the primary factors in the study were green investment and economic growth, which were expressed as gdp growth (annual percentage) and technology access (percentage of urban population), respectively. furthermore, agricultural biotechnology was employed as a predictor in the study, with high technology exports (as a percentage of manufactured exports) and employment in agriculture (as a percentage of total employment) being measured. table 1 displays these factors. table 1: variables. variable category variable symbol variable definition data source dependent variable qeg the quality of economic growth gdp growth (annual percentage) wdi independent variable uia urban innovation ability access of technologies (% of urban population) wdi wdi wdi usti urban science and technology importance high technology exports (% of manufactured exports) eua proportion of employees in urban agriculture employment in agriculture (% of total employment) the study presents the descriptive statistics that reveal the details of the variables, including measures such as mean, standard deviation, and minimum and maximum values. furthermore, the study also highlights the importance of conducting a unit root test as a crucial step in selecting the appropriate model. the equation for the adf tests is given below: 𝑑(𝑌𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑌𝑡−1 + 𝑑(𝑌𝑡(−1)) + ɛ𝑡 (3) the unit root among variables has been investigated individually, and the separate equations for each variable are given below: quality of economic growth 𝑑(𝑄𝐸𝐺𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶𝑄𝐸𝐺𝑡−1 + 𝑑(𝑄𝐸𝐺𝑡(−1)) + ɛ𝑡 (4) urban innovation ability 𝑑(uia𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶uia𝑡−1 + 𝑑(uia𝑡(−1)) + ɛ𝑡 (5) urban science and technology importance 𝑑(usti𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶usti𝑡−1 + 𝑑(usti𝑡(−1)) + ɛ𝑡 (6) proportion of employees in urban agriculture 𝑑(eua𝑡) = 𝛼0 + 𝛽𝑡 + 𝛶eua𝑡−1 + 𝑑(eua(−1)) + ɛ𝑡 (7) finally, the ardl model was utilised to examine the relationship between variables. it is considered the best approach when certain constructs remain constant at a certain level, while others remain constant after undergoing a first difference (sharif, baris-tuzemen, uzuner, ozturk, & sinha, 2020). furthermore, the ardl model examines the relationship between constructs in both the short and long term. equations (8) and (9) contain the "short-run coefficients" represented by δ1, δ2, δ3, δ4, and δ5. on the other hand, the "long-run coefficients" and the error term are denoted by φ1, φ2, φ3, φ4, φ5, and ɛ1. the ardl model equation is given as under: ∆𝑄𝐸𝐺𝑡 = 𝛼0 + ∑𝛿1∆𝑄𝐸𝐺𝑡−1 + ∑𝛿2∆𝑈𝑆𝑇𝐼𝑡−1 + ∑𝛿3∆𝐸𝑈𝐴𝑡−1 + 𝜑1𝑄𝐸𝐺𝑡−1 + 𝜑2𝑈𝑆𝑇𝐼𝑡−1 + 𝜑3𝐸𝑈𝐴𝑡−1 + ɛ1 (8) ∆𝑈𝐼𝐴𝑡 = 𝛼0 + ∑𝛿1∆𝑈𝐼𝐴𝑡−1 + ∑𝛿2∆𝑈𝑆𝑇𝐼𝑡−1 + ∑𝛿3∆𝐸𝑈𝐴𝑡−1 + 𝜑1𝑈𝐼𝐴𝑡−1 + 𝜑2𝑈𝑆𝑇𝐼𝑡−1 + 𝜑3𝐸𝑈𝐴𝑡−1 + ɛ1 (9) research findings an analysis was conducted on the original data series of each variable using descriptive statistics. the descriptive statistics revealed the intricate details of the variables, including measures like the mean, standard deviation, and the range of values. the results are displayed in table 2. agbioforum, 26(1), 2024 | 13 hu & masron. — exploring the impact of agricultural biotechnology on green investment and economic growth table 2: descriptive statistics of variables. observed value minimu m maximum mean standard deviation qeg 20 -4.439 3.570 -6.384 2.994 uia 20 0.004 0.082 0.026 0.024 usti 20 0.037 0.298 0.144 0.067 eua 20 0.062 0.120 0.094 0.016 considering the available economic data, there are a couple of challenges when it comes to developing a model that analyses the effects of green investment on economic growth in china. every variable is distinct based on whether it follows the sequence of i (0) or i (1). the ardl is capable of effectively addressing the aforementioned modelling issues. (1) in the case of estimating small samples, the ardl model demonstrates increased stability. moreover, when the explanatory variable is endogenous, the ardl model can also provide independent and high-quality estimates; (2) the ardl model is capable of conducting a boundary cointegration check to assess the long-term relationship between variables. unlike the eg two-step approach and jj method, the ardl model does not necessitate variables to have the same order of unified home integration. this holds true regardless of whether the variables are i (1) or i (0). the ardl model can be utilised in the ardl boundary cointegration test. consequently, this paper employs the ardl model to examine the influence of the leverage ratio on the quality of economic growth in china. the process of modelling requires three steps. the ardl model employs bound testing to assess the presence of a long-term stable relationship between variables. bound testing is applicable in three specific scenarios: when the variables are of the same order i (0) single integer, when the variables are of the same order i (1) single integer, and when the variables are of mixed type i (0) and i (1). hence, it is imperative to perform a stationarity test for each variable initially in order to assess whether they fulfil the prerequisites of the ardl boundary co-integration test. equation (2) can be used to analyse the long-term relationship between variables, if there exists a cointegration relationship between them. it is important to highlight that the coefficient estimation in equation (1) is used exclusively to determine the presence of a long-term relationship, whereas the coefficient in equation (2) is utilised to estimate the magnitude of the long-term effect. this study employs the adf and kpss tests to conduct unit root tests for each variable. the adf test method, introduced by dickey and fuller in 1979, assumes that the data generation process follows a p-order autoregressive process with unit roots. its initial assumption is that the sequence possesses a unit root. the principles of intercept, trend, intercept-free, trend-free, and no-intercept are applied during the test until the null hypothesis is rejected. eviews10 software selects the optimal lag time based on sic criteria. the kpss test, proposed by kwiatkowski in 1992, distinguishes between two types of errors in hypothesis testing: α errors (rejecting true hypotheses) and β errors (accepting false hypotheses). when the sample size is small, greater emphasis is placed on rejecting the null hypothesis rather than accepting an incorrect null hypothesis. this paper employs the kpss test method in addition to the adf test method to enhance and strengthen the results. this approach ensures a more comprehensive and persuasive analysis. the results of the adf and kpss tests in table 3 indicate that all variables are either i (0) or i(1) sequences. there is no secondorder stationary sequence, and the variables satisfy the conditions for the ardl boundary co-integration test. table 3: unit root test results. variable adf adf test results kpss kpss stationarity qeg -1.928* smooth and steady 0.146 smooth and steady lguia 0.297 nonstationary 0.119 smooth and steady lgusti -2.131** smooth and steady 0.097 smooth and steady lgeua -2.267** smooth and steady 0.310 smooth and steady the null and alternative hypotheses for equation (8) aim to determine the presence of a long-term steady relationship among the four variables. the null hypothesis (h0) states that δ1, δ2, δ3, and δ4 are all equal to zero. the alternative hypothesis (h1) states that at least one of δ1, δ2, δ3, and δ4 is not equal to zero. the statistical test employed is the f statistic, which follows a non-standard asymptotic distribution. if the price of the f statistic exceeds the critical value, the null hypothesis is rejected. if the calculated f value is significantly smaller than the critical value, the null hypothesis is accepted. if the estimated f price falls within the range of the higher and lower critical values, it cannot be immediately determined and must be assessed based on the result of the unit root test. table 4 demonstrates that when the satisfactory monetary increase (qeg) is used as the dependent variable, the calculated f cost of 17.44062 exceeds the upper limits of the integral values of 10%, 5%, 2.5%, and 1%. therefore, we reject the null hypothesis that there is no co-integration relationship between variables. thus, the aforementioned conclusion is derived. there exists a long-term and stable co-integration relationship. table 4: ardl boundary co-integration test results. test statistic value k f-statistic 17.44062*** 3 critical value bounds significance i（0）bound i（1）bound 10% 2.72 3.77 5% 3.23 4.35 2.50% 3.69 4.89 1% 4.29 5.61 note: ***, ** and * represent the significance level of 1%, 5% and 10% respectively the study employed the ardl approach to examine the relationship between the variables. the study found a positive correlation between agricultural biotechnology and economic growth in china. the outcomes are presented in table 5. the study employed the ardl approach to examine the relationship between the variables. the study found a positive correlation between agricultural biotechnology and green investment in china. the outcomes are presented in table 6. agbioforum, 24(2): 196-204. ©2022 agbioforum hu & masron. — exploring the impact of agricultural biotechnology on green investment and economic growth table 5: ardl model (economic growth). variable coefficient standard error t-statistics p-value c 0.683*** 0.084 8.131 0.000 qeg (-1) 1.388 *** 0.230 6 035 0.000 lgusti (-1) 0.767*** 0.141 5.439 0.000 lgeua (-1) 0.321*** 0.060 5.350 0.000 d (qeg (-1)) 0.261** 0.112 2.330 0.032 d(lgusti) 0.853*** 0.165 5.169 0.000 d (lgusti (-1)) 1.071*** 0.234 4.577 0.000 d(lgeua) 0.481*** 0.109 4.413 0.000 d (lgeua (-1)) 0.545*** 0.088 6.193 0.000 table 6: ardl model (green investment). variable coefficient standard error t-statistics p-value c 0.784*** 0.091 8.615 0.000 uia (-1) 1.765*** 0.455 3.879 0.000 lgusti (-1) 0.729** 0.314 2.321 0.029 lgeua (-1) 0.894** 0.398 2.246 0.031 d (uia (-1)) 3.158*** 0.987 3.199 0.001 d(lgusti) 0.201** 0.091 2.209 0.035 d (lgusti (-1)) 0.882*** 0.236 3.737 0.000 d(lgeua) 3.361*** 0.471 7.135 0.000 d (lgeua (-1)) 0.489*** 0.118 4.414 0.000 discussions this study examines the impact of agricultural biotechnology on green investment and economic growth by investigating two research questions and corresponding hypotheses. the first hypothesis proposes that advancements in agricultural biotechnology can stimulate increased investment in sustainable green practices in china. prior research by hesham et al. (2021) has demonstrated that agro-biotechnology, specifically genetic modification, reduces the release of harmful chemicals like fertilisers and pesticides, thereby benefiting the environment. furthermore, it is worth mentioning that biotechnology has a positive influence on the environment, which is particularly appealing to environmentally conscious investors. these investors are increasingly engaged and actively seeking investment opportunities that align with sustainable development goals (pandey, de coninck, & sagar, 2022). genetically modified crops, created through biotechnology, serve as a prime example of crops that are ideal for green investment. these crops contribute to an eco-friendlier environment by reducing soil and water pollution and promoting the overall health of ecosystems. munaweera, jayawardana, rajaratnam, and dissanayake (2022). further supports the hypothesis. their research underscores the potential of biotechnology advancements to enhance the nutritional content of crops. this has the potential to address the issue of malnutrition, particularly in developing societies, thereby adding both environmental and social value to these plants. according to aguilar, twardowski, and wohlgemuth (2019), investors who prioritise environmentalism and societal welfare often choose to invest in agricultural biotechnology. this allows them to contribute to both causes while also supporting biotechnological innovations through increased investment. investments of this nature are crucial for advancing the field, supporting important research and development, and ultimately bringing new biotechnological products to market. in addition, they play a crucial role in addressing the fundamental requirements of sustainable agriculture. this includes ensuring the availability of adequate water resources for agricultural purposes and promoting the adoption of renewable energy in agricultural operations and on the fields. the study highlights a strong feedback loop in the relationship between investment in green and agricultural biotechnology. this investment not only stimulates the development of more biotechnological innovation but also encourages additional investment. the second hypothesis explores the impact of an agricultural biotechnology invention on the overall economic growth of china. a recent study by schröder et al. (2019) highlights the positive impact of biotechnology on crop production. the research shows that optimising farming activities through the application of biotechnology leads to improved yields and increased returns for farmers. this boost in land productivity contributes to economic growth, particularly in rural areas where farming is the primary focus of activity. the study reveals that the advantages of the agricultural biotechnology industry are primarily seen in the agriculture sector. however, we also recognise a significant external benefit that is introduced by the industry when considering both production and final consumption values. essentially, when farmers' incomes rise, it has a ripple effect on the economy by creating a greater demand for goods and services. this serves as a catalyst for economic growth, providing an immediate and effective stimulus (ibn-mohammed et al., 2021). the ability to export also contributes to the overall economic growth of a nation by enhancing trade balances and generating foreign exchange revenues. this is particularly evident in the case of biotechnologically advanced crops, as highlighted by mustafa and iqbal (2021). investing in agricultural biotechnology can offer countries the advantage of becoming exporters of high-quality, nutrient-rich crops that have a competitive edge in the market. this could potentially lead to an influx of foreign capital, which has the potential to boost the economic growth of many countries. as a result, there may be an increase in investment in both agricultural and non-agricultural sectors. furthermore, past research conducted by lu, xie, agbioforum, 26(1), 2024 | 15 hu & masron. — exploring the impact of agricultural biotechnology on green investment and economic growth and yao (2019) has demonstrated that improvements in labour and capital efficiency within the agricultural sector can have positive effects on growth, employment, and output diversification in other sectors. however, while the study acknowledges certain advantages of agricultural biotechnology, it also highlights a number of disadvantages of this technology. for this reason, we must also take into account the potential negative impacts of biotechnological development on both large agri-business organisations and smallholder farmers. these challenges can be exacerbated by the advancements in biotechnology. small-scale farmers depend on temporary workers and may not have the necessary funds to invest in biotechnological tools and knowledge. this could widen the gap between different players in the agriculture industry. in order to address these disparities, it is crucial to prioritise the equitable distribution of biotechnological innovations. implications of the study the practical significance of the current study is evident as it encompasses a wide range of issues, such as policymaking, investment, and farming worldwide. therefore, policymakers can use this information to develop appropriate regulatory policies that would allow smallholder farmers to benefit from this biotechnological advancement and provide them with the necessary education to navigate it. it can greatly contribute to reducing or at least not exacerbating the current disparities in income distribution in agricultural trade. for investors, it highlights the potential of agricultural biotechnology as a valuable investment. it emphasises that the return on investment in this field will be significant in the future, making it a worthwhile and environmentally sustainable choice for further investment. it raises the question of the ethical procedures that have been implemented and briefly discusses genetically modified organisms and the need to address the public's misunderstandings and fears, in order to promote a more ethical approach. the study guides policymakers in making policies related to enhancing green investment and economic growth through the use of effective agricultural biotechnology. limitations when considering the conclusion, it is important to acknowledge certain limitations that were identified in the study. the analysis primarily relies on the current impact of prevailing biotechnological technologies, potentially overlooking the long-term consequences of genetically modified organisms (gmos) on both the environment and human health. this limitation may arise from the geographical coverage of the study, as the benefits and drawbacks of agricultural biotechnology can vary significantly in various countries or farming contexts. in addition, although it emphasises the economic advantages for these smallholder farmers, it may not fully address all the challenges these farmers encounter when adopting biotechnological tools and knowledge. lastly, the ethical concerns and societal implications of gmos are complex and ever-changing, and the study may not have been able to fully address and incorporate all the perspectives and solutions from around the world. 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(2024) defines sustainability as the integration of environmental, social, and economic factors into supply chain operations, optimizing economic benefits without adverse effects on society or the environment (hoang et al., 2024). over the past two decades, sustainable supply chain practices have gained increasing attention from businesses and governments due to global issues such as social injustice, resource depletion, and climate change (kumar et al., 2024; kumar et al., 2023b). circular economy, green logistics, ethical purchasing, and sustainable sourcing are highlighted as key topics in current supply chain management research by xiao et al. (2024). food security is crucial for fostering social equity, societal welfare, and economic advancement, playing a pivotal role. studies have demonstrated that sustainable supply chain management solutions impact various supply chain processes, including environmental, social, and economic aspects (das et al., 2023). abbas et al. (2023); (lahane et al., 2023) investigated the environmental impacts of sustainable practices like green sourcing and logistics, highlighting their potential to reduce ecological footprints. furthermore, kumar, choubey, and colleagues (2023) illustrated how sustainable shopping practices can cut carbon emissions and costs. joshi et al. (2023) emphasized the importance of green logistics, such as eco-friendly packaging and shipping, in reducing supply chain pollution and waste. additionally, research suggests that sscm regulations incorporating ethical labour practices and procurement methods can benefit society (kuwornu et al., 2023). given its role as a food distribution and trading hub, the eastern province of saudi arabia requires sustainable supply chain management solutions. numerous empirical studies have explored sustainable supply chain management, yet many areas remain underresearched (mastos et al., 2022). some studies have investigated how sustainable supply chain management affects food security, highlighting gaps in comprehensive research on the topic (mohseni et al., 2022). limited empirical research exists on sustainable food procurement and management in saudi arabia's eastern province (islam et al., 2017), despite increasing interest in sustainable agriculture practices and their impact on food security (oyedijo et al., 2024). previous research has often overlooked consumer habits and food safety knowledge in building sustainable supply chains for food security (alfasisi, 2022), indicating the importance of examining individual characteristics alongside agricultural supply chain management. an empirical study is needed to investigate the impact of sustainable supply chain management systems on food security across various socioeconomic and geographical contexts, considering consumer preferences, market dynamics, and regulatory frameworks (kazancoglu et al., 2021). understanding the impact of these strategies on food security is crucial. mailto:mdoghan@kfu.edu.sa agbioforum, 25(3), 2023 | 31 abdulaziz aljoghaiman. — food safety and security in eastern province of saudi arabia: role of sustainable supply chain management practices addressing these research gaps will improve our understanding of how sustainable supply chain management (sscm) techniques affect food security (fernandez et al., 2021; iakovou et al., 2016), thereby contributing to the expansion of the food supply chain in saudi arabia's eastern province. dammam, al khobar, and dhahran are prominent cities in the eastern province, known for their commercial and industrial significance. the region's economy relies on vast oil reserves and a growing petrochemical industry (lópez-gálvez et al., 2021). its strategic location attracts investments and development projects aimed at enhancing industry resilience and sustainability, particularly in food supply chain management, given its inland desert and arabian gulf coastline (mohseni et al., 2022). examining sustainable supply chain management and food availability involves stakeholder theory, resource-based theory, and institutional theory (yadav et al., 2023). stakeholder theory emphasizes considering the needs of customers, employees, and communities (hoang, 2021), while resource-based theory sees sustainable scm practices as critical resources for long-term competitiveness (barbosa, 2021). institutional theory highlights the influence of norms on sustainable organizational behaviour (mohseni et al., 2022). this study investigates how sustainable scm impacts food security, considering customer behaviour and food safety knowledge as moderators. findings will inform sustainable development theory and management. 2. literature review the allure of green logistics management lies in its ability to cut environmental impact and enhance operational efficiency, attracting both academics and practitioners to this expanding field of supply chain management (letunovska et al., 2023). extensive research has been conducted in green logistics management, focusing on sustainable storage, packaging, reverse logistics, and transportation, ultimately reducing transportation-related carbon emissions and environmental challenges (ersoy et al., 2022). possible solutions include utilizing biofuels and electric vehicles, rerouting freight via rail and ocean transportation, enhancing existing routes, and employing blockchain, ai, and iot technologies to improve logistics transparency (lahane et al., 2023). this measure can augment the monitoring of environmental performance indicators and facilitate more informed decision-making regarding eco-friendly projects (joshi et al., 2022). green logistics management has investigated sustainable packaging materials (das et al., 2023). experts recommend the elimination of packing materials, optimization of designs to reduce weight and volume, and adoption of recyclable or biodegradable materials to mitigate the environmental impact of the supply chain (mastos et al., 2022). reverse logistics, encompassing product returns, recycling, and remanufacturing, is a focal point of green logistics research, termed as such by mahroof et al. (2022). effective reverse logistics management reduces landfill waste and promotes resource recovery and the circular economy (oyedijo et al., 2024). the study seeks to enhance reverse logistics networks, boost product recovery rates, and engage stakeholders in returned goods and supplies (hoang et al., 2024). green logistics management research underscores the necessity for organizations to integrate eco-friendly practices across their supply chain to remain competitive and foster a sustainable future. sustainable supply chain management refers to supply chain operations that encompass social, economic, and environmental considerations (haji et al., 2024). this approach aims to mitigate environmental and social adverse effects while fostering economic growth. in the context of this discourse, "individuals' food security" pertains to ensuring that families and individuals have access to nutritious food at affordable prices (heydari, 2024). numerous empirical studies focus on sustainable supply chain management, covering financial viability, social responsibility, and ecological sustainability (kuwornu et al., 2023). scholars stress the importance of integrating sustainability across the supply chain, including waste reduction, ethical labour standards, efficient transportation, and sustainable sourcing (kumar et al., 2023b). research indicates that supply chain management fosters cost minimization, risk reduction, and brand reputation. empirical investigation is crucial for understanding the relationship between food security and environmentally friendly supply chain management (das et al., 2023). comprehensive analysis reveals that sustainable supply chain methods enhance food security. kumar et al. (2023a) noted that sustainable procurement enhances product quality and safety, leading to improved food security for consumers. lahane et al. (2023) observed that organic farming and water conservation contribute to better access to food in rural areas. abbas et al. (2023) demonstrated that eco-friendly transportation reduces food waste, ensuring more precise distribution and enhancing food security. drawing from empirical evidence, the hypothesis suggests a robust connection between food security and environmentally friendly supply chain management (joshi et al., 2023). research indicates that implementing sustainable supply chain methods can enhance food security (el ayoubi et al., 2023). sustainability measures encompassing food sourcing, transportation, and distribution are anticipated to augment the supply, affordability, and availability of nutritious food, consequently advancing nutritional security (xiao et al., 2024). thus, integrating sustainability principles into supply chain management strategies becomes imperative to address global food security challenges and foster sustainable development. h1. sustainable supply chain management significantly influences the individuals’ food security. empirical studies, like kumar et al. (2024), have linked environmentally conscious logistics management to operational and environmental outcomes. research delves into various green logistics aspects, including sustainable packaging, energy-efficient warehousing, and eco-friendly shipping. barbosa (2021) discovered that green logistics strategies lower carbon emissions, transportation costs, and enhance supply chain efficiency. similarly, yadav et agbioforum, 25(2), 2023 | 32 abdulaziz aljoghaiman. — food safety and security in eastern province of saudi arabia: role of sustainable supply chain management practices al. (2023) explored how green transportation regulations could curtail fuel use and greenhouse gas emissions. bor (2021) demonstrated that green warehousing reduces resource usage and waste, consequently fostering more environmentally sustainable supply networks. research has demonstrated that implementing green logistics management can enhance operational efficiency and promote environmental conservation (kazancoglu et al., 2021). the concept links food security with green logistics management. a previous study provided empirical evidence supporting this notion. green logistics could enhance food security (iakovou et al., 2016). programmes should enhance the availability, price, and accessibility of nutritious food. sustainable storage minimises waste and maximises resource use, enhancing food supply networks (alfasisi, 2022). logistics management approaches should integrate environmental sustainability to tackle food security and advance sustainable development (mahroof et al., 2022). sustainable logistics can aid in the equitable distribution of food and safeguard vulnerable populations. previous research has connected green logistics management with individual food security (mastos et al., 2022). thorough research indicates that green logistics can enhance food security by influencing supply chain operations and environmental sustainability (kharola et al., 2022). additional empirical research in various geographic and socioeconomic contexts is necessary to validate and enhance these findings (gupta et al., 2024). green logistics companies can enhance the sustainability and fairness of the food chain. h2. green logistics management implementation significantly influences the individuals’ food security. prior empirical investigations have explored the impact of green logistics and sustainable supply chain management on the environmental and operational performance of supply networks (alfasisi, 2022). numerous studies have investigated the influence of environmentally sustainable logistics on environmental performance (mastos et al., 2022). sustainable packaging encompasses energyefficient practices in warehousing, transportation, and packaging. letunovska et al. (2023) analyses include carbon emissions, resource efficiency, and operating costs. multiple studies by xiao et al. (2024) examine the impact of sustainable supply chain management strategies on economic performance, social responsibility, and environmental sustainability, emphasizing waste reduction, ethical practices, and sustainable resource utilization. kuwornu et al. (2023) demonstrate that sustainable supply chain management and green logistics management enhance supply chain efficiency and sustainability, while abbas et al. (2023) reveal that green logistics management improves food security and supply chain sustainability. mastos et al. (2022) advocate for ecofriendly transportation, route efficiency, and sustainable packaging to promote food security. fernandez et al. (2021) recommend environmental mitigation, resource efficiency, and supply chain enhancement to achieve this goal. lahane et al. (2023) suggest that sustainable supply chain management and logistics could address complex social and environmental issues like food insecurity. mohseni et al. (2022) highlight the impact of green logistics management on food security and sustainable supply chain management, warranting further investigation. alfasisi (2022) and kumar et al. (2023b) propose researching how green supply chains and logistics influence food security across regions and socioeconomic categories. yadav et al. (2023) argue that studying sustainable supply chain management, stakeholder coalitions, and market dynamics can enhance food security, green logistics, and sustainability, elucidating the intricate linkages in future sustainable food supply systems. an empirical study concludes that addressing global issues like food security necessitates long-term solutions. h3. green logistics management implementation significantly moderates the relationship of sustainable supply chain management and individuals’ food security. empirical research has investigated the intricate connections among food safety knowledge, sustainable supply chain management, and food security (haji et al., 2024). gupta et al. (2024) conducted a study on the impact of food safety and sustainable supply chain management on food security in different settings. these variables encompass food availability, accessibility, and cost. haji et al. (2024) emphasise the significance of educating people about food safety to prevent foodborne illnesses and maintain food quality. el ayoubi et al. (2023) researched food security and sustainable supply chain management. examples include ethical production, transparent labelling, and acquisition of renewable resources. xiao et al. (2024) state that these methods improve socially and environmentally responsible food production and distribution. the study sheds light on the management of food security and food safety supply networks. kumar et al. (2024) discovered that sustainable supply chain management can impact nutritional security, according to food safety data. food safety awareness has been shown to impact the effectiveness of sustainable supply chain management in enhancing food security (hoang et al., 2024). implementing sustainable supply chain methods like as labelling, traceability, and quality control can be advantageous for employees that prioritise food safety. being attentive decreases the incidence of food-borne diseases and enhances dietary decisions (joshi et al., 2023). paying attention to information can enable humans and skills to manage sustainable supply networks and uphold food security (abbas et al., 2023) and educating customers on healthy, eco-friendly meal choices is essential (kharola et al., 2022). an empirical investigation into the impact of food safety knowledge on sustainable supply chain management and personal food security is recommended to address this inquiry. this research may uncover insights into food security, the influence of food safety information on sustainable supply chain practices, and the socioeconomic and cultural factors shaping consumer behaviour. mastos et al. (2022) assert that this approach enhances comprehension of fundamental concepts and procedures, revealing strong agbioforum, 25(3), 2023 | 33 abdulaziz aljoghaiman. — food safety and security in eastern province of saudi arabia: role of sustainable supply chain management practices connections between these qualities. food security, sustainable supply chain management, and market dynamics are influenced by laws, regulations, and consumer preferences (mohseni et al., 2022). understanding the complex interactions among these variables is crucial to grasp their effects on sustainable food systems (qin et al., 2021). empirical research highlights the importance of considering people's knowledge and behaviour in food security and sustainability policies. h4. food safety knowledge significantly moderates the relationship of sustainable supply chain management and individuals’ food security. figure 1: proposed model. 3. methodology this study was conducted within the food supply chain industry of the eastern province of saudi arabia, involving data collected from 169 farmers and employees across various departments. it employed a quantitative approach to investigate the relationships among sustainable supply chain management, green logistics management, food safety awareness, and food security. data collection utilized a standardized questionnaire, allowing participants to express their views on the research constructs. the questionnaire scales were derived from established research studies to ensure reliability and validity of measurement equipment. participants rated their responses on a likert scale ranging from strongly disagree to strongly agree. data collection methods included providing hard copies of the questionnaire or utilizing an online version based on participant convenience and preferences. this study used a ten-item scale to quantify sustainable supply chain management (kot, 2018). additionally, a sixteen-item scale was used to measure the application of green logistics management (trivellas et al., 2020). the knowledge of food safety was assessed using a twelve-item scale (aboaba et al., 2020). a scale of eight items was used to gauge each person's level of food security (osaili et al., 2021). participants completed standardized questionnaires provided to them for data collection, utilizing likert scales for responses. their workplace perspectives and experiences determined agreement with each item. stata sem was employed to investigate variable correlations, estimating path coefficients, mediation and moderation effects, and assessing structural equation model fit. the study aimed to gather empirical data on proposed hypotheses in the food supply chain sector of saudi arabia's eastern province, advancing theoretical understanding and practical applications of project management approaches in the relevant sector through structural equation modelling. 4. results table 1 demonstrates significant internal consistency for each variable. sustainable supply chain management exhibits a cronbach's alpha coefficient of 0.855, indicating high reliability. similarly, green logistics management shows a cronbach's alpha coefficient of 0.885, suggesting accurate assessments in supply chain management. the food safety knowledge test displays a cronbach's alpha coefficient of 0.817, indicating reliability. additionally, the cronbach's alpha coefficient for food security among individuals is 0.846, accurately measuring the availability, accessibility, and cost of healthy food. these findings establish a robust foundation for data analysis and interpretation, showcasing the variables' internal consistency and dependability. table 1: cronbach's alpha. variable cronbach's alpha sustainable supply chain management 0.855 green logistics management implementation 0.885 food safety knowledge 0.817 individuals’ food security 0.846 table 2 confirms the validity of the measurement model through composite reliability and ave scores for each variable. sscm exhibits a composite reliability of 0.887, indicating high internal consistency. sscm explains over 50% of observed variables' variance, with an average variance recovered of 0.510, surpassing the recommended threshold of 0.5. glm demonstrates a composite reliability of 0.826, signifying strong internal consistency. the glm ave is 0.556, affirming convergent validity by attributing over 55% of observed variable variance to the glm construct. the food safety knowledge items demonstrate a composite reliability of 0.888, signifying high internal consistency. with an ave of 0.538, the food safety knowledge surpasses the proposed threshold of 0.5, indicating convergence. additionally, a composite dependability of 0.876 suggests strong internal consistency for food security items. the individual food security ave, at 0.582, exceeds the acceptable level, affirming convergent validity. the measurement model effectively and consistently evaluates constructs, bolstering the study's findings and conclusions (table 2). table 2: validity and reliability confirmation. variable composite reliability average variance extracted (ave) sustainable supply chain management 0.887 0.510 green logistics management implementation 0.826 0.556 food safety knowledge 0.888 0.538 individuals’ food security 0.876 0.582 agbioforum, 25(3): 30-43. ©2023 agbioforum abdulaziz aljoghaiman. — food safety and security in eastern province of saudi arabia: role of sustainable supply chain management practices figure 2: estimated model. table 3: confirmatory factor analysis. measurement oim coef. std. err. z p>|z| [95% conf. interval] sscm1 1.000 (constrained) sscm2 0.652 0.050 12.610 0.000 0.573 0.776 sscm3 0.683 0.054 12.223 0.000 0.597 0.816 sscm4 0.761 0.056 13.238 0.000 0.674 0.899 sscm5 4.036 0.045 86.276 0.000 0.817 0.265 sscm6 1.036 0.097 10.279 0.000 0.874 0.269 sscm7 0.952 0.094 9.805 0.000 0.794 0.174 sscm8 0.992 0.094 10.231 0.000 0.836 0.216 sscm9 0.940 0.093 9.718 0.000 0.782 0.161 sscm10 1.123 0.101 10.753 0.000 0.957 0.366 fsk1 1.000 (constrained) fsk2 0.820 0.085 9.283 0.000 0.675 0.021 fsk3 0.952 0.095 9.718 0.000 0.793 0.177 fsk4 0.988 0.109 8.800 0.000 0.802 0.242 fsk5 3.982 0.048 80.454 0.000 0.206 0.215 fsk6 0.728 0.082 8.539 0.000 0.586 0.920 fsk7 0.991 0.100 9.564 0.000 0.822 0.227 fsk8 1.035 0.096 10.424 0.000 0.876 0.265 fsk9 1.083 0.086 12.117 0.000 0.944 0.295 fsk10 1.073 0.088 11.749 0.000 0.930 0.288 fsk11 1.067 0.090 11.420 0.000 0.920 0.287 fsk12 0.282 0.077 3.559 0.000 0.136 0.447 p1 1.000 (constrained) p2 1.022 0.078 12.668 0.000 0.899 0.215 p3 1.219 0.094 12.484 0.000 0.696 0.452 is1 1.000 (constrained) is2 0.816 0.070 11.304 0.000 0.702 0.985 is3 0.860 0.073 11.459 0.000 0.742 0.036 w1 1 (constrained) w2 3.889 0.047 79.632 0.000 0.093 0.117 w3 3.769 0.050 72.293 0.000 0.080 0.260 le1 1 (constrained) le2 4.096 0.045 87.968 0.000 0.144 0.327 le3 3.991 0.044 88.568 0.000 0.039 0.215 le4 3.970 0.043 90.124 0.000 0.019 0.192 lnt1 1 (constrained) lnt2 3.895 0.045 83.549 0.000 0.036 0.119 lnt3 3.892 0.042 89.834 0.000 0.040 0.110 ifs1 1 (constrained) ifs2 4.018 0.043 90.801 0.000 0.068 0.242 ifs3 4.179 0.050 80.890 0.000 0.221 0.423 ifs4 4.125 0.056 71.113 0.000 0.153 0.380 ifs5 4.012 0.039 99.717 0.000 0.070 0.227 ifs6 4.102 0.044 91.169 0.000 0.153 0.330 ifs7 3.844 0.052 71.239 0.000 0.087 0.081 ifs8 0.942 0.085 10.763 0.000 0.803 0.145 table 3 presents the results of the measurement model cfa. it includes standardized factor loadings (oim coef.), standard errors, z-values, p-values, and 95% confidence intervals for each observable variable on its latent agbioforum, 25(3), 2023 | 35 abdulaziz aljoghaiman. — food safety and security in eastern province of saudi arabia: role of sustainable supply chain management practices construct. all items demonstrate significant construct factor loadings, affirming the convergent validity of the measurement model. factor loadings for sscm categories 2, 3, and 4 (0.652-0.761, z-values > 0.05, p < 0.001) are significant. food safety knowledge (fsk) items (fsk2, fsk3, and fsk4) exhibit substantial factor loadings (0.820-0.988) with z-values (p < 0.001). additionally, significant factor loadings for other latent constructs like perceived benefits (p), information sufficiency (is), working conditions (w), leadership effectiveness (le), learning and training (lnt), and information flow and sharing (ifs) confirm the validity and reliability of the measurement model. cfa results indicate that the measuring model accurately captures study constructs. table 4 displays the fitness statistics of the measuring items, indicating the variance each indicator explains in its latent construct. sscm elements sscm1–sscm10 show moderate to high fitness coefficients ranging from 0.526 to 0.934, with sscm5 exhibiting the highest value of 0.934. fsk components range from 0.511 to 0.766. glm indicators p1–p3, is1–is3, w1–w3, le1–le4, and lnt1–lnt3 have fitness values of 0.541–0.772. ifs components demonstrate moderate to high fitness coefficients, ranging from 0.512 to 0.870. these statistics illustrate the contribution of each indicator to its latent construct, enhancing the validity and reliability of the measurement model. table 4: measurement items fitness statistics. variable indicator original sample sustainable supply chain management sscm1 0.693 sscm2 0.746 sscm3 0.769 sscm4 0.791 sscm5 0.934 sscm6 0.782 sscm7 0.526 sscm8 0.642 sscm9 0.829 sscm10 0.810 food safety knowledge fsk1 0.766 fsk2 0.737 fsk3 0.609 fsk4 0.555 fsk5 0.662 fsk6 0.711 fsk7 0.749 fsk8 0.697 fsk9 0.595 fsk10 0.588 fsk11 0.522 fsk12 0.511 green logistics management implementation p1 0.541 p2 0.794 p3 0.694 is1 0.723 is2 0.739 is3 0.584 w1 0.577 w2 0.716 w3 0.705 le1 0.537 le2 0.680 le3 0.772 le4 0.698 lnt1 0.724 lnt2 0.634 lnt3 0.660 individuals’ food security ifs1 0.674 ifs2 0.533 ifs3 0.577 ifs4 0.512 ifs5 0.845 ifs6 0.830 ifs7 0.870 ifs8 0.699 table 5 presents the chi-square fit data for assessing the goodness of fit of the measurement model. the likelihood ratio of 1846.3329 significantly differs from that of a saturated model, with a p-value of 0.000, agbioforum, 25(2), 2023 | 36 abdulaziz aljoghaiman. — food safety and security in eastern province of saudi arabia: role of sustainable supply chain management practices indicating a substantial difference between the proposed and saturated models. similarly, the comparison chisquare value between the baseline and saturated models was 713.81122, with a p-value of 0.000, highlighting significant differences between them. these fit statistics indicate that while the measurement model approximates the relationships between observed variables and latent constructs, it may not precisely match the data. table 5: chi-square fit statistics. fit statistic value description likelihood ratio 1846.3329 model vs. saturated p > chi2 0.000 chi2_bs (2728) 713.81122 baseline vs. saturated p > chi2 0.000 table 6 provides goodness of fit statistics for both the saturated and estimated models. the estimated model's srmr is 0.067, while the saturated model's srmr is 0.057. a lower srmr signifies a better fit between the model and the data. although the estimated model's srmr is slightly higher than that of the saturated model, both values fall within acceptable limits, demonstrating accurate representation of variable-latent construct relationships. in conclusion, these goodness of fit statistics affirm the structural description of the estimated model's data. table 6: model goodness of fit statistics. saturated model estimated model srmr 0.057 0.067 table 7 presents r-square statistics for each latent construct in the measurement model. r-square quantifies the proportion of endogenous latent variable variance explained by exogenous influences. sscm has an rsquare value of 0.467, indicating that its observed variables account for 46.7% of its variation. similarly, glm has an r-square value of 0.399, indicating that observed factors explain 39.9% of its variation. fsk demonstrates the highest r-square score of 0.523, indicating that 52.3% of its variance stems from the model's observed variables. these r-square statistics elucidate the extent to which observable factors influence latent construct variability, highlighting the indicators' efficacy in capturing the underlying concepts. table 7: r-square statistics. variable r square sustainable supply chain management 0.467 green logistics management implementation 0.399 food safety knowledge 0.523 table 8 depicts path analysis results, revealing that sustainable supply chain management, green logistics management implementation, and food safety knowledge have direct and moderate effects on food security. the research demonstrates a significant positive correlation between sscm and food security, with a path coefficient of 0.713 (p < 0.001). this underscores the importance of ethical sourcing, waste reduction, and transparent labelling in ensuring access to nutritious and safe food for households. glm significantly enhances food security (p < 0.001), with an r square value of 0.596, indicating that environmentally friendly transportation, streamlined logistics, and sustainable packaging improve food supply chains and food security. path analysis reveals that glm implementation and food safety awareness moderate the relationship between sscm and individuals’ food security. glm implementation moderates the sscm-food security relation (p < 0.001) with a path coefficient of 0.208. together, sscm and glm enhance food security more effectively, underscoring the importance of integrating sustainability principles throughout the supply chain to enhance resilience and sustainability. additionally, the path coefficient of 0.614 (p < 0.001) indicates that food safety knowledge moderates the relationship between sscm and food security. this highlights the influence of food safety knowledge and food choices on sscm techniques' ability to provide safe and nutritious food, emphasizing the significance of consumer education and awareness. table 8: path analysis. oim coef. std. err. z p>|z| [95% conf. interval] sustainable supply chain management significantly influences the individuals’ food security. 0.713 0.252 4.856 0.000 0.423 0.565 green logistics management implementation significantly influences the individuals’ food security. 0.596 0.147 4.074 0.000 0.309 0.883 green logistics management implementation significantly moderates the relationship of sustainable supply chain management and individuals’ food security. 0.208 0.066 2.905 0.000 0.080 0.337 food safety knowledge significantly moderates the relationship of sustainable supply chain management and individuals’ food security. 0.614 0.151 4.196 0.000 0.318 0.910 path analysis elucidates the intricate connection between food security and supply chain management. exploring the direct and indirect impacts of sustainable supply chain management, green logistics management, and food safety knowledge can enhance our comprehension of food security's resilience and sustainability within food systems. agbioforum, 25(3): 30-43. ©2023 agbioforum abdulaziz aljoghaiman. — food safety and security in eastern province of saudi arabia: role of sustainable supply chain management practices figure 3: structural model for direct paths analysis. figure 4: structural model for moderating paths analysis. 5. discussion green logistics, sustainable supply chain management, and food safety awareness are essential components for addressing the complexities of the global supply chain network. the increasing importance of sustainable supply chains arises as communities strive to provide affordable and nutritious food. this study investigates the intricate relationship among food safety knowledge, green logistics management, sustainable supply chain management, and individual food security to showcase robust food system development strategies. it analyses the impact of green logistics management and food safety knowledge on food security and sustainable supply chain management behaviours. the study confirms that sscm & glm enhance food availability, supporting the first and second hypotheses. sustainable supply chains are vital for stabilizing domestic food supplies, as ethical sourcing and waste reduction promote the availability, affordability, and accessibility of nutrient-dense food. these initiatives enhance food supply agbioforum, 25(2), 2023 | 38 abdulaziz aljoghaiman. — food safety and security in eastern province of saudi arabia: role of sustainable supply chain management practices networks, mitigating food poverty and fostering sustainable development. additionally, glm enhances food security judgments by prioritizing environmentally sustainable practices such as optimal routing and ecofriendly transportation. when combined, sscm and glm improve food security more effectively than individually, offering businesses a comprehensive approach to address sustainable development and food security challenges in their supply chains (mahroof et al., 2022). sustainable purchasing ensures nutrient-rich food and supports nearby farmers and communities, enhancing food security and socioeconomic conditions. implementing eco-friendly logistical solutions like route optimization and carbon reduction enhances food supply network safety, improving efficiency and sustainability. research findings corroborate stakeholder, resource-based, and institutional theories, highlighting supply chain management's impact on the economy, society, and environment. environmentally friendly supply chains and logistics enhance a company's longevity, profitability, and competitiveness. integrating sustainability into supply chain management promotes sustainable development and food security. sscm and glm aid firms in expanding and sustaining food supply networks, contributing to global food security. addressing complex socio-environmental concerns like food security necessitates a holistic approach to sustainability. this study aims to elucidate how food safety awareness and green logistics management moderate the relationship between sustainable supply chain management and food security. confirmation of the third and fourth hypotheses provides crucial insights, indicating that sustainable supply chain food security benefits should be assessed individually and contextually. the third hypothesis demonstrates that food safety awareness influences sscm actions and food security outcomes, emphasizing the importance of maintaining high standards for food quality and safety, preventing foodborne illnesses, and promoting healthy eating habits. food safety specialists benefit from sscm methods integrating quality assurance, traceability, and clear labelling, which aim to enhance food security. conversely, the fourth hypothesis suggests that glm adoption exacerbates sscm behaviours and personal food security. green logistics enhances food security by enhancing the sustainability and effectiveness of food distribution networks, with strategies including greener transportation, routing, and packing. the study concludes that both sscm and glm contribute positively to food security, and adherence to food supply chain sustainability criteria can enhance resilience, efficiency, and sustainability for businesses (kazancoglu et al., 2021). individual and community food security improves, sparking theoretical and practical discussions. empirical support for institutional theory complements the resourcebased and stakeholder approaches. assessing theoretical frameworks involves contextual factors, human behaviour, and supply chain sustainability activities. lu et al. (2021) emphasize the need for a coordinated sustainable approach to address food security challenges. integrating food safety and environmental consciousness into supply chain management can enhance food security and sustainable development. contextual and human elements are crucial for improving food security and food supply network sustainability. sustainable supply chain management, eco-friendly logistics, and food safety are crucial for human food security, as confirmed by all four hypotheses. supply chain activities should prioritize sustainability and be assessed contextually. comprehensive efforts to address food supply chain sustainability can enhance system resilience, efficiency, and continuity, benefiting global food security. academics, professionals, and policymakers must devise innovative sustainable development and food security strategies to tackle the world's increasing interconnectedness and unpredictability. the study reveals the intricate relationship among sustainable supply chain management, green logistics management, food safety awareness, and individual food security. it underscores the significant advantages of sustainable methods for food security programs. integrating environmental, social, and economic sustainability into supply chain decision-making is crucial. the moderating effects highlight the need for targeted interventions considering individual and contextual aspects. however, acknowledging study limitations and exploring future research directions are essential. the analysis sheds light on fundamental interconnections and mechanisms vital for sustaining food systems. collaboration among stakeholders is crucial in addressing food security challenges within sustainable development frameworks. implications of the study this research enhances understanding and has significant theoretical implications, particularly in linking sustainable supply chain management, green logistics management, food safety knowledge, and individual food security. it strengthens stakeholder, resource-based, and institutional theories, shedding light on supply chain dynamics and food security. the identification of moderating variables emphasizes contextual and human factors in sustainability project evaluation, expanding theoretical understanding of food security factors. the research underscores sustainability's environmental, social, and economic interdependence, offering theoretical insights into sustainable development's breadth and food security effects. overall, it improves comprehension of sustainable food system mechanisms, providing a theoretical foundation for future research and comprehensive frameworks to address food security within sustainable development agendas. this research is crucial for stakeholders in the food supply chain, policy-making, and sustainable development sectors. it highlights the importance of integrating sustainability into supply chain management strategies to enhance food security. ethical sourcing, waste reduction, and green transportation can be prioritized by food companies based on the study's findings, improving both food security and environmental sustainability. policymakers can use empirical data from this research to formulate and enforce supply chain sustainability policies to tackle systemic food security issues. the study, conducted by the epa, emphasizes the need for tailored approaches considering factors like food safety awareness agbioforum, 25(3), 2023 | 39 abdulaziz aljoghaiman. — food safety and security in eastern province of saudi arabia: role of sustainable supply chain management practices and consumer behaviour in sustainability evaluations. targeted education and awareness initiatives are essential for empowering consumers to make informed and environmentally sustainable food choices. the research underscores the necessity of collaborative efforts to build sustainable and resilient food systems, aligning with goals of food security, environmental conservation, and economic growth. limitations and future research directions this study highlights the connections between food security, glm, sscm, and understanding of food safety; yet, it has several shortcomings that should be investigated in further studies. the cross-sectional nature of the study's data makes determining causality difficult. the causal and chronological relationships between food security and sustainability may be demonstrated through experimental or longitudinal research. the study places a high priority on quantitative analysis, which could ignore contextual and qualitative sustainability intervention efficacy factors. a mixed-method study could clarify the sustainability of the food supply chain. the study overlooks societal-level institutional frameworks, market dynamics, and policy contexts, concentrating solely on individual outcomes. future research should explore how macro-level factors influence the relationship between sustainability programs and food security. it neglects intermediary mechanisms and contextual factors, focusing solely on the direct and moderating effects of sscm, glm, and food safety knowledge on food security outcomes. analysing supply chain resilience, community empowerment, and governance systems could shed light on how sustainability measures impact food security. while the research clarifies the sustainability-food security relationship, addressing these limitations and exploring future avenues could enhance food system sustainability initiatives. acknowledgment this work was supported by the deanship of scientific research, vice presidency for graduate studies and scientific research, king faisal university, saudi arabia [grant 6114]'. references abbas, h., zhao, l., gong, x., & faiz, n. 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(2021). green practices in food supply chains: evidence from emerging economies. operations management research, 1-14. doi: https://doi.org/10.1007/s12063-021-00187-y https://doi.org/10.3390/agronomy11122408 https://doi.org/10.1002/9781118937495 https://doi.org/10.1080/13504509.2016.1209794 https://doi.org/10.1108/jgoss-02-2021-0014 https://doi.org/10.1108/jgoss-02-2021-0014 https://doi.org/10.1177/0972150920907014 https://doi.org/10.3390/su14010143 https://doi.org/10.1016/j.jclepro.2022.131355 https://doi.org/10.3390/su10041143 https://doi.org/10.1108/ijppm-12-2020-0695 https://doi.org/10.1016/j.jclepro.2023.136894 https://doi.org/10.1002/bse.3191 https://doi.org/10.1016/j.sftr.2022.100103 https://doi.org/10.1016/j.clscn.2023.100116 https://doi.org/10.3390/logistics7030047 https://doi.org/10.3390/foods10071655 https://doi.org/10.1080/09537287.2020.1796137 https://doi.org/10.1108/ijppm-12-2020-0687 https://doi.org/10.3390/foods11152295 https://doi.org/10.1155/2022/4486132 https://doi.org/10.3389/fpubh.2021.729816 https://doi.org/10.1108/scm-05-2022-0205 https://doi.org/10.1007/s12063-021-00187-y agbioforum, 25(3), 2023 | 41 abdulaziz aljoghaiman. — food safety and security in eastern province of saudi arabia: role of sustainable supply chain management practices trivellas, p., malindretos, g., & reklitis, p. (2020). implications of green logistics management on sustainable business and supply chain performance: evidence from a survey in the greek agri-food sector. sustainability, 12(24), 10515. doi: https://doi.org/10.3390/su122410515 xiao, g., samian, n., faizal, m. f. m., as’ad, m. a. z. m., fadzil, m. f. m., abdullah, a., et al. (2024). a framework for blockchain and internet of things integration in improving food security in the food supply chain. journal of advanced research in applied sciences and engineering technology, 34(1), 24-37. doi: https://doi.org/10.37934/araset.34.1.2437 yadav, v. s., singh, a. r., raut, r. d., & cheikhrouhou, n. (2023). blockchain drivers to achieve sustainable food security in the indian context. annals of operations research, 327(1), 211-249. doi: https://doi.org/10.1007/s10479-021-04308-5 https://doi.org/10.3390/su122410515 https://doi.org/10.37934/araset.34.1.2437 https://doi.org/10.1007/s10479-021-04308-5 agbioforum, 25(2), 2023 | 42 abdulaziz aljoghaiman. — food safety and security in eastern province of saudi arabia: role of sustainable supply chain management practices appendix 1 sustainable supply chain management scale 1. to what extent does your organization prioritize the reduction of environmental impact in its supply chain activities? 2. how effectively does your organization manage waste and minimize resource consumption throughout the supply chain? 3. to what degree does your organization collaborate with suppliers to ensure ethical and sustainable sourcing practices? 4. how well does your organization integrate social responsibility initiatives into its supply chain operations? 5. to what extent does your organization consider longterm sustainability goals in decision-making processes within the supply chain? 6. how effectively does your organization communicate sustainability policies and practices to stakeholders involved in the supply chain? 7. how well does your organization assess and manage risks related to sustainability issues in the supply chain? 8. to what extent does your organization invest in innovation and technology to enhance sustainability within the supply chain? 9. how well does your organization measure and track key performance indicators related to sustainability in the supply chain? 10. how effectively does your organization collaborate with regulatory bodies and industry associations to ensure compliance with sustainability standards? green logistics management implementation scale: 1. to what extent does your organization utilize ecofriendly transportation modes (e.g., electric vehicles, hybrid trucks) in its logistics operations? 2. how effectively does your organization optimize transportation routes to minimize fuel consumption and reduce carbon emissions? 3. to what degree does your organization implement sustainable packaging practices (e.g., reusable packaging, biodegradable materials) in its logistics operations? 4. how well does your organization utilize technology (e.g., gps tracking, rfid) to improve efficiency and reduce environmental impact in logistics operations? 5. to what extent does your organization collaborate with logistics partners to implement green initiatives throughout the supply chain? 6. how effectively does your organization manage inventory to reduce overstocking and minimize waste in logistics operations? 7. how well does your organization implement reverse logistics practices to reduce waste and maximize resource recovery? 8. to what degree does your organization invest in employee training and awareness programs to promote green practices in logistics operations? 9. how effectively does your organization monitor and evaluate the environmental performance of logistics operations? 10. to what extent does your organization collaborate with governmental agencies and environmental organizations to promote sustainable logistics practices? 11. how well does your organization integrate sustainability criteria into the selection and evaluation of logistics service providers? 12. how effectively does your organization implement green warehousing practices to minimize energy consumption and reduce environmental impact? 13. to what degree does your organization utilize data analytics and optimization techniques to improve efficiency and sustainability in logistics operations? 14. how well does your organization engage with customers and suppliers to promote sustainability initiatives in logistics operations? 15. to what extent does your organization invest in renewable energy sources (e.g., solar panels, wind turbines) to power logistics facilities? 16. how effectively does your organization communicate its commitment to sustainability to stakeholders involved in logistics operations? food safety knowledge scale: 1. how confident are you in your understanding of safe food handling practices? 2. to what extent are you familiar with the potential health risks associated with consuming contaminated food? 3. how well do you understand the principles of proper food storage to prevent spoilage and contamination? 4. how knowledgeable are you about the proper cooking temperatures for different types of food to ensure food safety? 5. to what extent are you aware of the importance of washing hands and surfaces to prevent crosscontamination during food preparation? 6. how well do you understand food labeling and expiration dates to identify safe and fresh food products? 7. how familiar are you with common foodborne pathogens and their symptoms? 8. to what extent do you understand the importance of separating raw and cooked foods to prevent foodborne illnesses? 9. how knowledgeable are you about potential allergens and how to avoid cross-contact during food preparation? 10. how confident are you in your ability to recognize signs of food spoilage or contamination? 11. to what extent are you familiar with food safety agbioforum, 25(3), 2023 | 43 abdulaziz aljoghaiman. — food safety and security in eastern province of saudi arabia: role of sustainable supply chain management practices regulations and guidelines set forth by regulatory authorities? 12. how well do you understand the risks associated with consuming raw or undercooked foods? individuals’ food security scale: 1. how often do you worry about having enough food to meet your household's needs? 2. to what extent do you feel confident in your ability to afford a balanced and nutritious diet for yourself and your family? 3. how often do you experience uncertainty about where your next meal will come from? 4. how well do you feel your household's food supply meets your dietary preferences and nutritional needs? 5. to what extent do you feel your household has reliable access to a variety of foods to maintain a healthy diet? 6. how often do you have to make difficult choices between buying food and paying for other essential expenses (e.g., rent, utilities)? 7. how well do you feel your household is prepared to cope with unexpected financial setbacks that could affect access to food? 8. to what extent do you feel your household has access to community resources (e.g., food banks, soup kitchens) in times of need? agbioforum, 26(3): 128-137. ©2024 agbioforum thongsrikate et al — the model of creative agriculture among farmers in chiang mai city the model of creative agriculture among farmers in chiang mai city ittipong thongsrikate* faculty of liberal arts, maejo university, chiang mai, 50290, thailand. orcid id: https://orcid.org/0000-0002-7893-0174 email: ittipong@mju.ac.th kangsadan kanokhong faculty of agricultural production, maejo university, chiang mai, 50290, thailand. orcid id: https://orcid.org/0009-0000-4627-3424 email: kangsadan@mju.ac.th this study investigated agricultural practices among farmers in chiang mai city, focusing on the determinants of creative agriculture and formulating a model to enhance such practices within the city, a regionally significant economic hub in thailand. a mixed-methods research design was employed, incorporating both quantitative and qualitative approaches. the quantitative sample comprised 400 farmers selected via a two-stage random sampling technique, while the qualitative component involved 30 key informants. data collection instruments included structured questionnaires and semi-structured interview guidelines. analytical procedures encompassed descriptive statistics, chi-square correlation analysis, and thematic content analysis. the results revealed that the majority of respondents were male, with a mean age of 44 years. most participants were married, had attained primary-level education, and resided within extended family households. they engaged in a variety of agricultural occupations within their communities and had accrued a minimum of five years of farming experience. while most were members of communitybased agricultural groups, only a minority had benefited from formal agricultural knowledge promotion initiatives. several factors were found to be significantly associated with creative agriculture among farmers in chiang mai city. these included age, household composition, number of agricultural labourers, size of cultivated land, affiliation with agricultural organisations or groups, farmingrelated indebtedness, participation in community activities, and agricultural practices. based on these findings, a creative agriculture development model was proposed, comprising three primary components: (1) cultivating agricultural consciousness, (2) designing and implementing alternative agricultural methods, and (3) leveraging media and information technology in agricultural processes. it is therefore recommended that local governmental bodies in chiang mai city actively promote farmers' access to agricultural information to enhance their adaptability and resilience. furthermore, efforts should be made to encourage diversification of farming practices, foster innovation in agricultural product processing, and improve market accessibility through the integration of digital technologies for the effective promotion and communication of agricultural products to consumers. keywords: model of creative agriculture, creative agriculture, farmers, agriculture development. introduction agriculture remains a foundational livelihood across all regions of thailand, largely attributable to the nation’s advantageous geographical characteristics. a considerable segment of the thai population is either directly engaged in farming or possesses ancestral connections to agricultural activities. over time, thailand’s agricultural landscape has undergone notable transformation, progressing from subsistence methods such as hunting and gathering to mechanised farming and technology-oriented practices, as categorised by development phases from thailand 1.0 to thailand 3.0. in particular, the thailand 4.0 policy represents a comprehensive national strategy aimed at revolutionising the conventional agricultural sector through the integration of innovation, advanced technologies, and indigenous knowledge. this policy seeks to elevate the value and quality of agricultural outputs while ensuring safety for both producers and consumers (meechoovet & siriwato, 2023). chiang mai city, the largest metropolitan area in northern thailand and the second largest nationally, is a prominent agricultural hub with over 182,740 farming households. the city is distinguished by its historical significance, unique lanna cultural heritage, and diverse agricultural productivity. its fertile land—spanning over 12 million rai—supports the cultivation of both tropical and temperate crops. in response to shifting developmental priorities, recent provincial strategies have promoted sustainable agriculture, value-added product processing, and enhanced product quality as key measures for bolstering competitiveness and increasing farmers’ incomes. chiang mai also benefits from a dynamic agricultural marketplace, inclusive of organic goods markets, farmers’ markets, and agritourism sites. nonetheless, several structural challenges remain, including an ageing farming population, reduced labour force engagement, dependence on traditional agricultural techniques characterised by elevated production costs and constrained pricing control, as well as increasingly unpredictable climatic conditions (malik et al., 2022). consequently, a growing number of farmers are diversifying into non-agricultural occupations. creative agriculture emerges as an innovative paradigm that underscores the role of individual creativity in https://orcid.org/0000-0002-7893-0174 mailto:ittipong@mju.ac.th https://orcid.org/0009-0000-4627-3424 mailto:kangsadan@mju.ac.th agbioforum, 26(3), 2024 | 129 thongsrikate et al — the model of creative agriculture among farmers in chiang mai city farming. this approach incorporates artistic expression, cultural identity, and ritual practices into the conceptualisation and execution of agricultural activities or outputs. beyond basic production, creative agriculture encompasses the management and strategic use of both existing and novel materials to design and refine agricultural products, thereby fostering added value that accrues benefits for both producers and consumers. this aligns with the notion of an external economy, wherein the perceived value of an innovation is determined by its popularity, leading to enhanced product value under conditions of high demand. in this context, value is not rooted in scarcity but in social appeal. technological advancements play a pivotal role in augmenting this value while simultaneously preserving and promoting cultural heritage (abiri et al., 2023). creative agriculture further complements the overarching aims of thailand’s agricultural reform efforts, which aspire to empower farmers by aligning agricultural practices with regional capacities through the application of technology and innovation (jansuwan & zander, 2021). in developing nations, innovation serves as a vital mechanism for transforming ideas into viable products and services, refining production processes, entering new markets, and attracting diverse consumer bases. within an environment marked by constant transformation, the capacity to generate ideas that yield socio-economic value is inherently linked to innovation (rayamajhee, storr, & bohara, 2022). this study posits that creative agriculture constitutes a strategic response that resonates with both chiang mai’s developmental agenda and national initiatives aimed at fostering technological uptake among farmers. by harnessing cultural capital and local wisdom, this model facilitates the creation of competitive agricultural commodities and services, leading to increased income for farming communities. furthermore, creative agriculture provides a pathway for mitigating risks associated with traditional farming, including the adverse effects of climate change, disease outbreaks, economic volatility, media influences, technological disruption, and shifts in agricultural contexts (gai & yang, 2023; opolot et al., 2018; seerasarn, miller, & wanaset, 2020; ulvenblad et al., 2020). given these pressures, innovation and creativity have become critical components for ensuring resilience and adaptability in the agricultural sector (waheed, ayodele, & issah, 2020). accordingly, this research seeks to examine the factors significantly associated with creative agricultural practices among farmers in chiang mai city and to propose viable models for advancing such practices. the overarching objective is to develop strategies that support farmers in achieving sustainable livelihoods and enduring economic security within an increasingly complex agricultural environment. research objectives 1. to examine agricultural practices among farmers in chiang mai city. 2. to explore the factors influencing creative agriculture among farmers in chiang mai city. 3. to develop a model for creative agriculture tailored to farmers in chiang mai city. literature review creative agriculture is fundamentally rooted in innovative farming, integrating creativity into agricultural processes to distinguish them from traditional practices (rayamajhee et al., 2022). this model of agriculture merges farming activities with artistic, cultural, and ritualistic elements, thereby expanding the role of farmers beyond mere production into management and value creation (pradasegura & medina-roncancio, 2023; sigauke, 2020). it may involve the repurposing of existing materials alongside the incorporation of new resources to enhance the quality and appeal of agricultural goods. significantly, creative agriculture emphasises value addition, catering to both producers and consumers in what is termed an "external economy". here, the worth of a product is determined by its popularity rather than its scarcity. consequently, high demand for an innovative and effective product enhances its value (adro & fernandes, 2022). technological integration not only contributes to this value enhancement but also aids in preserving agricultural traditions. the realisation of creative agriculture depends on the possession of positive skill sets and intrinsic creativity among farmers. these may include cultivation expertise, a commitment to quality, and proficiency in using agricultural tools. much of this expertise emerges from interpersonal knowledge sharing among farmers (simonton, 2003), ultimately fostering novel agricultural developments. nonetheless, barriers persist, as some farmers are reluctant to embrace new farming methods or develop novel products (quan et al., 2024). moreover, having a supportive team or mentor system can encourage farmers to engage in creative practices, as collaborative environments tend to stimulate innovation (kavi et al., 2018; msoffe & ngulube, 2016). in the current knowledge-based economy and society, knowledge functions as a crucial asset for driving innovation across various sectors, including agriculture, which is subject to rapid global transformation (waheed et al., 2020). farmers must not only keep pace with these changes but also adopt information and communication technologies (icts) to enhance production efficiency and marketing capabilities (kanjina, 2021). however, the thai agricultural sector continues to face challenges, particularly regarding low productivity and income levels. these issues are often linked to insufficient knowledge and limited market awareness among farmers, affecting their ability to plan and execute quality, environmentally sustainable production strategies. technology plays a pivotal role in modern agricultural markets, facilitating online access to both raw and processed products (quan et al., 2024). additionally, digital platforms such as twitter, whatsapp, and facebook allow farmers to create customer service channels, swiftly resolve issues, and share information (lee & suzuki, 2020; mills et al., 2019). technological adoption in agriculture may also require expert consultation to optimise implementation across farming agbioforum, 26(3), 2024 | 130 thongsrikate et al — the model of creative agriculture among farmers in chiang mai city practices. creative agriculture extends beyond mere innovation; it also involves applying accumulated knowledge derived from expertise, social networks, cultural capital, and local wisdom. these resources support farming, marketing, and management activities. consumer safety and product quality, central to human capital, reflect the depth of knowledge and skills that farmers integrate into their operations—often in relation to their income levels (plaiphum & tansuchat, 2023). unlike conventional agriculture, creative farming leverages culturally significant practices to generate added value. the utilisation of local wisdom can take several forms: maintaining traditional practices, adapting technical methods, or altering the components and structures of indigenous knowledge (pratita, irham, & mulyo, 2019). such practices represent essential cultural capital applicable in agricultural innovation. ultimately, creative agriculture fosters both efficiency and responsiveness, addressing evolving consumer demands. it adapts continuously to global agricultural dynamics, including shifts in food market structures and consumer preferences for safety and environmentally responsible farming (hong, tian, & wang, 2023; zscheischler et al., 2022). thus, this approach contributes to the establishment of a sustainable food production system that is both innovative and consumer-oriented. through the integration of advanced technologies, artistic elements, and design principles, creative agriculture stimulates innovation within the sector. farmers, possessing entrepreneurial competencies and a wealth of experiential knowledge, are the key agents in this transformative process. research methodology research design this study adopts a mixed-methods design, integrating both quantitative and qualitative approaches. the quantitative component investigates the agricultural practices of farmers and identifies the factors associated with the adoption of creative agriculture in chiang mai city. concurrently, the qualitative component is employed to construct a conceptual model for creative agriculture tailored to the context of farmers in chiang mai city. the methodological framework for the study is presented as follows: participants and sampling for the quantitative phase of this research, the target population comprised 181,371 agricultural households within chiang mai city. a sample of 400 household heads was determined using yamane’s formula. a two-stage random sampling technique was adopted. the inclusion criteria required participants to: (1) have a minimum of five years’ experience in agricultural activities, including crop cultivation, livestock farming, and/or freshwater fishing; (2) be aged 18 years or older; (3) be in good physical health; (4) possess literacy in thai (reading and/or writing); and (5) express a willingness to participate and provide information. the qualitative phase was conducted in mae taeng district of chiang mai city, involving farmers who exhibited a strong dedication to agriculture, particularly in organic farming and the processing of agricultural products through the application of local wisdom. these individuals were also recipients of ongoing knowledge support from both local and external organisations. a purposive sampling strategy was employed, resulting in a sample of 30 participants. research instruments in the quantitative phase of the study, data were collected using a structured questionnaire consisting of four sections: (1) demographic characteristics; (2) socioeconomic status and land ownership; (3) farming practices; and (4) aspects of creative agriculture. the questionnaire included both openand closed-ended items. to ensure reliability, the instrument was reviewed by subject matter experts and subsequently piloted with a group of 30 farmers possessing similar attributes to the primary sample. the responses from the pilot study were employed to compute the reliability coefficient using cronbach’s alpha, which yielded a value of 0.93, indicating a high level of internal consistency (cronbach & shavelson, 2004). for the qualitative component, data were gathered through indepth interviews guided by a series of open-ended questions. these interviews were conducted with the selected target group and aimed to contribute to the formulation of a creative agriculture model tailored to farmers in chiang mai city. research ethics this study was carried out in accordance with the principles of respect for human dignity and received ethical approval from the maejo university human ethics committee (approval code: mjuirb no. hs 099/66). data analysis in the quantitative component of this study, data analysis commenced with the coding of validated questionnaire responses, followed by processing using software tailored for the analysis of social science research data. descriptive and inferential statistical methods were applied, including frequency distribution, percentage, mean, standard deviation, and cross-tabulation to examine variable relationships, with chi-square tests employed to determine statistical significance. the results were presented in tabular format. for the qualitative component, content analysis was employed. audio-recorded interviews were transcribed verbatim and segmented by individual participants. the transcripts were verified for accuracy, then coded and thematically organised. this process incorporated data from literature reviews, empirical studies, and relevant theoretical frameworks to ensure alignment with the research objectives. results the results of the study are presented across three key dimensions: (1) demographic attributes, socio-economic attributes, landholdings, and agricultural practices of farmers; (2) factors associated with creative agriculture among farmers in chiang mai city; and (3) the proposed model of creative agriculture for farmers in chiang mai city. the findings are outlined as follows: agbioforum, 26(3), 2024 | 131 thongsrikate et al — the model of creative agriculture among farmers in chiang mai city demographic attributes, socio-economic attributes, farmers’ holdings and agricultural practice of the farmers table 1: percentage of the demographic attributes, socio-economic attributes, farmers’ holdings and agricultural practice of the sample group. profile of the samples cont.(n=400) percent gender male 220 55.0 females 180 45.0 total 400 100.0 age 18-39 years 48 12.0 40-49 years 123 30.8 50-59 years 192 48.0 over 60 years 37 9.2 total 400 100.0 min=18, mean=44, max=80 status single 40 10.5 married 322 80.5 widowed/divorced/ separated 38 9.0 total 400 100.0 education lower than elementary school 17 4.3 elementary school 169 49.0 secondary school/vocational or higher vocational certificate 125 31.3 bachelor’s degree and higher 62 15.4 total 400 100.0 a number of household members less than 4 people 187 46.8 5-8 people 205 51.2 more than 6 people 8 2.0 total 400 100.0 min=1, mean=4, max=12 farmers’ holding less than 4 rai 102 25.5 4-12 rai 179 44.8 over 12 rai 119 29.7 total 400 100.0 min=0.2 ngan, mean=8, max= 45 rai a number of household workforce 1-4 people 322 80.5 over 4 people 78 19.5 total 400 100.0 min=1, mean=3.2, max=20 an annual income (year) less than 500,000 baht 314 78.5 over 500,000 baht 86 21.5 total 400 100.0 min=5,000, mean=748,620, max=5,000,000 farming experience less 5 years 125 31.3 5-10 years 116 29.0 10-20 years 109 27.3 over 20 years 50 12.4 total 400 100.0 min=1, mean=11, max=40 agricultural group/organization membership membership of agricultural group/organization 264 66.0 no membership of agricultural group/organization 136 34.0 total 400 100.0 receiving promotion no 346 86.5 yes 54 13.5 total 400 100.0 debt no debt burden 111 27.8 having debt burden 289 72.2 total 400 100.0 social activities no participation 29 7.2 seldom participation in social activities 171 42.8 always participation in social activities 200 50.0 total 400 100.0 agricultural practice of the farmers high 165 41.2 middle 181 45.3 low 54 13.5 total 400 100.0 adaptation and appropriate operational method production management high 198 49.5 middle 162 40.5 low 40 10.0 total 400 100.0 the study revealed that more than half of the respondents were male (55.0%), with nearly half falling within the age range of 50-59 years (48.0%), followed by those aged 4049 years (30.8%). the average age of the participants was 44 years. most of the respondents (80.5%) were married, and 49.0% had completed only elementary education. approximately half of the households had between 5 and 8 members (51.2%). in terms of agricultural activities, respondents were involved in a variety of practices such as rice cultivation, orchard management, vegetable farming, ornamental plant cultivation, and animal husbandry. about 44.8% of the participants owned agbioforum, 26(3), 2024 | 132 thongsrikate et al — the model of creative agriculture among farmers in chiang mai city between 4 and 12 rai of farmland, while 29.7% held 12 rai or more, with the size of the farmland ranging from 2 ngan to 45 rai. most respondents (80.5%) had between 1 and 4 household workers. the majority (78.5%) reported earning an annual income of 500,000 baht from their agricultural activities. regarding farming experience, respondents had an average of 11 years of experience in agriculture. however, 31.3% of them had less than 5 years of experience, while 29.0% had between 5 and 10 years of experience. a large proportion of respondents (66.0%) were members of agricultural groups or organisations. despite this, 86.5% of the participants stated that they had not received any agricultural knowledge support or promotion. in terms of financial status, respondents indicated that they obtained capital from various sources, including personal savings, funds, agricultural savings groups, the bank for agriculture and agricultural cooperatives (baac), general banks, and agricultural credit. over half of the respondents (72.2%) reported having a debt burden. furthermore, half of the respondents (50.0%) frequently engaged in social activities. with regard to agricultural practices, the majority of respondents demonstrated a moderate level of agricultural activity (45.3%), followed by those exhibiting a high level (41.2%) and a low level (13.5%). when it came to adopting appropriate operational methods for production management, half of the respondents (49.5%) performed at a high level, while 40.5% were at a moderate level, and 10.0% were at a low level. the findings are further elaborated in table 1. factors related to creative agriculture among farmers in chiang mai city the study found significant correlations between demographic, economic, and social factors and the engagement in creative agriculture among farmers in chiang mai city, at the 0.1 and 0.5 significance levels. specifically, age, household size, household labour, farmland size, membership in agricultural groups/ organizations, agricultural debt, agricultural extension services, and participation in social activities were all associated with the level of creative agriculture. younger farmers, aged 18 to 39, demonstrated a higher involvement in creative agriculture, with 54.2% of this group participating in creative agricultural practices, compared to older age groups. households with more than eight family members also showed a greater proportion of creative agriculture, at 62.2%, which was higher than households with fewer members. table 2: percentage of creative agriculture adoption among farmers in chiang mai city classified by demographic attributes, socio-economic attributes, farmers’ holdings, and agricultural practice. demographic attributes, socio-economic attributes, farmers’ holdings and agricultural practice creative agriculture of famer in chiang mai city χ2 p-value low medium high (percent) (percent) (percent) age 18-39 years 2.1 43.8 54.2 13.826 0.032* 4049 years 17.9 46.3 35.8 50-59 years 16.7 50.5 32.8 60 years and over 21.6 35.1 43.2 members living in the household less than 4 people 11.2 47.6 41.2 10.067 0.039* 5 – 8 people 20.5 46.8 32.7 more than 8 people 0.0 37.5 62.5 number of workers in the household 1-4 people 18.6 48.4 32.9 17.768 0.010* more than 4 people 3.8 41.0 55.1 number of agricultural areas less than 4 rai 24.5 43.1 32.4 13.954 0.007* 412 rai 15.1 51.4 33.5 more than 12 rai or more 9.2 43.7 47.1 membership in groups/organizations related to agriculture no member 3.7 44.1 52.2 31.809 0.001* member 22.0 48.5 29.5 debt burden arising from farming have debt 19.0 49.5 31.5 17.765 0.001* not debt 7.2 40.5 52.3 promotion of agriculture promoted 9.3 42.6 48.1 3.918 0.014* not promoted 16.8 47.7 35.5 participating in social activities not 3.4 51.7 44.8 24.382 0.001* sometimes 22.8 52.0 25.1 always 11.5 42.0 46.5 desired farmer practices low 38.9 59.3 1.9 91.577 0.001* medium 22.1 49.7 28.2 high 1.2 40.0 58.8 farmers’ operations in management and production management low 57.5 42.5 0.0 111.350 0.001* medium 21.0 54.9 24.1 high 3.0 41.4 55.6 in terms of household labour, farmers with more than four household members engaged in agricultural labour exhibited a higher level of creative agriculture, with 55.1% of these households involved in creative agricultural practices. similarly, farmers who cultivated more than 12 rai of land displayed a higher level of creative agriculture, with 47.1% engaging in such practices, compared to farmers with smaller plots of land. interestingly, farmers who were not members of agbioforum, 26(3), 2024 | 133 thongsrikate et al — the model of creative agriculture among farmers in chiang mai city agricultural groups or organizations showed a higher proportion of high-level creative agriculture, at 52.2%, when compared to those involved in such groups. additionally, farmers who were free from agricultural debt showed a greater proportion of high-level creative agriculture, with 52.3% of debt-free farmers involved in creative practices, compared to their debt-burdened counterparts. farmers who received agricultural support exhibited a higher level of creative agriculture, with 48.1% of this group participating in creative agricultural activities. furthermore, farmers who regularly participated in social activities were more likely to engage in creative agriculture, with 46.5% of these farmers demonstrating high levels of creative agricultural practices compared to those who participated less frequently in social activities. moreover, farmers who employed desirable farming practices showed a higher level of creative agriculture, with 58.8% of these farmers engaging in creative agricultural activities. similarly, farmers who applied effective operational practices in production management were also more likely to practice creative agriculture, with 55.6% demonstrating such practices. the results revealed that farmers who demonstrated high levels of desirable farming and operational practices were significantly correlated with creative agriculture at a statistical level of 0.1. these findings are summarised in table 2. the development of creative agriculture models for farmers in chiang mai city in the study focused on the development of creative agriculture models for farmers in chiang mai city, the researcher carried out fieldwork to better understand the challenges faced by local farmers. this fieldwork involved engaging in direct conversations, conducting in-depth interviews with targeted groups of farmers, and observing agricultural activities in the region. through these methods, a model for creative agriculture tailored to the farmers in chiang mai city was developed. the model is presented in figure 1, which illustrates the proposed approach for fostering creative agricultural practices among the region's farmers. figure 1: the model of creative agriculture of famer in chiang mai city. conscious agriculture practices conscious agricultural practices are designed to equip farmers with essential agricultural knowledge to enhance their resilience and foster sustainable farming. by encouraging the acquisition of information and promoting the exchange of knowledge and skills among farmers, these practices aim to create a platform that supports the sharing of expertise and the improvement of agricultural capabilities. this approach is particularly crucial in addressing challenges posed by climate change. farmers are provided with opportunities to engage with experts who possess specialized agricultural knowledge and skills, facilitating valuable learning experiences. additionally, farmers are encouraged to participate in on-site inspections of farmland, both inside and outside greenhouses, managed by relevant institutions. such exposure to diverse learning platforms allows farmers to practically apply newly acquired knowledge to their own agricultural practices, thereby enhancing the sustainability and effectiveness of their operations. designing and creating agricultural alternatives the design and development of agricultural alternatives aim to offer farmers a range of viable options, such as intercropping, livestock farming, and diversifying agricultural product processing. these alternatives are intended to broaden the scope of farming practices beyond traditional community-focused products, allowing farmers to explore interests that differ from their current agricultural routines. by expanding the variety of products available for sale, farmers are provided with more channels for marketing their goods. furthermore, they gain insights into how local agricultural products can be processed into other marketable items, enhancing value-added opportunities. while many farmers possess the skills to produce and process agricultural products, these items often remain standard, without differentiation from conventional offerings. therefore, it is essential for farmers to assess which alternatives align with their circumstances and sustainability needs. in this regard, farmers may benefit from acquiring additional knowledge and skills through training programs. such training, combined with practical experience, enables them to effectively implement innovative approaches in their agricultural practices, thereby fostering the survival and growth of their agricultural enterprises. utilizing media, technology, and information in agriculture the use of media and information technology in agriculture aims to promote and communicate agricultural products to consumers. while these technologies are crucial for reaching consumers, many farmers have not yet fully embraced them. most continue to sell fresh produce in markets, with some using facebook to share product photos. to enhance their marketing, farmers need knowledge in basic photography and video editing. however, there are challenges, as many farmers, especially the elderly, face limitations in using advanced technologies or selling products on online platforms beyond basic mobile phone functions. the innovative agriculture development model for farmers in agbioforum, 26(3), 2024 | 134 thongsrikate et al — the model of creative agriculture among farmers in chiang mai city chiang mai city incorporates three approaches: conscious farming practices, the design and creation of agricultural alternatives, and the use of media, technology, and information in agriculture. the researcher tested these models with 30 farmers and found significant improvements in their knowledge post-training at the 0.05 level. the average post-training score was 107.00 (sd = 11.44), compared to the pre-training score of 51.83 (sd = 11.84). all three models showed higher average scores, with the most notable improvements in farming with awareness (24.5 points) and designing agricultural alternatives (22.2 points). farmers reported being able to implement these practices independently, from planning to achieving better outcomes. however, when it comes to integrating information technology into farming, farmers may require support from family members or those skilled in media and technology. discussion the analysis of factors related to creative agriculture among farmers in chiang mai city reveals significant connections between demographic factors, farmers' holding and farming characteristics, and practical farming factors. specifically, young farmers and expanding family sizes were found to be strongly associated with higher levels of creative agriculture. younger farmers are more likely to adopt technological media and innovative agricultural practices, differing from traditional methods. this finding aligns with studies by folitse et al. (2018) and minkoua nzie, c, and azinwi ngum (2018), which indicate that aging farmers are less likely to embrace new technologies due to the challenges of adapting to rapid changes in agriculture. kanjina (2021) also notes that social media may not be a key source of agricultural information for farmers in developing countries, suggesting that a gradual adoption process, supported by relevant institutions, would be more beneficial in the long term. additionally, the ongoing decline in the agricultural workforce, coupled with an aging farming population, has contributed to labour shortages in agriculture. however, larger family households can provide support by offering additional labour and knowledge, helping farmers navigate these challenges. the characteristic factors of holding and farming primarily relate to the nature of agriculture, including the number of workers in the household, the size of agricultural areas, membership in agricultural groups or organisations, debt burdens from farming, agricultural promotion, and participation in social activities. promoting agriculture enhances farmers' skills, knowledge, and practices in addressing climate change and improving their understanding of crop cultivation. agriculture must adapt to changes and find ways to ensure self-preservation in a dynamic environment. agricultural extension services, including training, education, and knowledge exchange with agricultural scholars, have been shown to improve farming practices. regular training is essential for farmers to stay updated and improve their agricultural practices. the number of household labourers plays a crucial role in the long-term viability of farms. this aligns with findings from the food and agriculture organization (fao), which states that family labour is a key unit in driving agricultural activities and helps preserve agrarian culture. similarly, research by kavi et al. (2018) shows that most farmers share agricultural knowledge with friends, neighbours, or family members. agricultural practice factors include the farmer's desired practices and their operations in management and production. farmers must integrate accumulated knowledge into their agricultural practices, create management plans, and adopt modern technologies. this is consistent with the findings of zscheischler et al. (2022) and hong et al. (2023), which highlight the importance of continuous agricultural development planning for achieving success in farming. this also aligns with the mission of agricultural extension services, which aim to promote "smart farming" by incorporating technology into production and marketing, enabling farmers to remain competitive. farmers must apply appropriate agricultural technologies, as technology and innovation play a crucial role in job creation, income generation, and enhancing sustainable quality of life. this is supported by cheng et al. (2024), who found that digital skills are vital for entrepreneurial farmers, contributing to rural economic recovery. farmers skilled in modern technology can effectively use online social media to engage with consumers. however, research by choruma et al. (2024) points out that while the use of digital technology in agriculture has advantages—such as better market access, improved decision-making, and increased income for small-scale farmers—it also presents challenges, including unequal access to equipment, low digital literacy, and limitations in internet connectivity. the creative agricultural model among farmers in chiang mai city comprises three main components: adaptive agricultural practices, the design and creation of alternatives in agriculture, and the utilisation of media and information technology in farming. in an era where technology plays a significant role in daily life and the distribution of information, farmers must integrate technology with their agricultural practices to facilitate consumer access to their products. by using online media platforms such as facebook and line to upload photos or videos of their agricultural products, farmers can enhance visibility and awareness of their produce. this aligns with the research of lee and suzuki (2020) and mills et al. (2019), who found that technology is instrumental in making agricultural products more accessible to the community through online sales, processed agricultural products, and providing additional channels for customers to purchase and receive services via online platforms, as well as to access information on consumer behaviours (ghosh, chakraborty, & law, 2018). as farmers gain knowledge and understanding of new technologies, they will realise the benefits of using these tools (quan et al., 2024). additionally, government agencies should support investors who are willing to purchase agricultural products from local farmers at reasonable prices. beyond modern communication technologies, local wisdom is considered a vital form of technology for farmers. it represents a body of knowledge accumulated over time and inherently accessible to farmers, who can utilise it at any point and further develop it through exchanges or knowledge support from relevant agencies. local wisdom can be applied to create innovative products that distinguish agbioforum, 26(3), 2024 | 135 thongsrikate et al — the model of creative agriculture among farmers in chiang mai city themselves from existing offerings. farmers can use local knowledge and culturally valuable practices to generate added value. this application may involve imitating traditional methods or maintaining their original form. furthermore, the use of local wisdom may include adapting techniques and methods or modifying the characteristics, components, or structure of local wisdom to create a new form of this knowledge (adro & fernandes, 2022). in conclusion, the concept of creative agriculture among farmers in chiang mai city is a key initiative integrated into the chiang mai development plan for the years 2023-2027. this aligns with the strategic direction for sustainable development in northern thailand. farmers in the northern region face several challenges, including a decline in agricultural landholding, an agricultural system that does not ensure food security, an inequitable education system that fails to meet local needs, a lack of development in community economies based on ecological and cultural resources, and persistently high levels of pm pollution. strategic development should focus on land-use management, creating innovations for food security and sustainable agriculture, educational management for learning and career opportunities, community-supported economic management, welfare, and the promotion of participation in forest fire and air pollution management. therefore, enhancing farmers' knowledge and encouraging them to apply this knowledge, along with their accumulated wisdom, to their agricultural practices, will drive the shift towards creative agriculture in chiang mai city. plaiphum and tansuchat (2023) assert that in the era of a knowledgebased society and economy, knowledge is a critical asset and a vital factor in fostering innovations that drive economic, social, political, and cultural development, enabling competitiveness in a rapidly changing world. local wisdom serves as an intellectual resource and foundation for the creative economy, which relies on the generation of goods and services from knowledge bases and creative ideas derived from intellectual capital, including expertise, analytical skills, inspiration, job satisfaction, and the use of intellectual property linked to cultural foundations, societal knowledge, and modern technology and innovation. furthermore, research by rayamajhee et al. (2022) demonstrates that farmers' innovative capabilities can create a competitive advantage by applying innovations to improve efficiency and quality in their operations or products. innovations in agriculture may include forms such as integrated farming, new theory agriculture, sustainable agriculture, and creative agriculture. conclusion the model of creative agriculture among farmers in chiang mai city involves several factors, including farmers' demographic characteristics, the attributes of their holdings and farming practices, and various agricultural practices. younger farmers, particularly those living in extended families, tend to exhibit greater creativity due to their better adaptation to technology compared to older farmers. living in extended families provides a platform for the exchange of ideas and mutual support in experimenting with different farming methods. the ageing farmer population is a significant issue in regions like thailand, as it directly impacts agricultural labour and may consequently affect the country's gross domestic product (gdp). regarding the characteristics of farming holdings and practices, key elements include the size of agricultural areas, membership in agricultural groups or organisations, debt burden resulting from farming activities, agricultural promotions, participation in social activities, preferred farming practices, and farmers' operational and production management skills. successful farmers demonstrate strong management skills and the ability to apply modern technologies to improve their practices. this includes utilising media, agricultural technologies, and expanding distribution channels through online platforms. simultaneously, farmers must focus on developing essential skills, knowledge, entrepreneurship, and familiarity with modern farming tools. these are crucial for fostering agricultural innovation and ensuring sustainability. the creative agriculture approach in chiang mai province serves as a strategy that enables farmers to create a path to self-reliance. this approach aligns with the chiang mai provincial development plan for 2023-2027, which seeks to empower farmers to become self-sufficient through cultural ecology and resource management, in line with sustainable development goals. promoting creativity among farmers through the integration of knowledge, wisdom, and cultural practices, while incorporating modern technology in agriculture, processing, and the production of innovative agricultural products and services, will contribute to economic recovery, social wellbeing, and sustainability in the agricultural sector. this, in turn, will enhance competitiveness in the ever-evolving agricultural landscape. recommendations 1. the implementation of the creative agricultural model employed by farmers in chiang mai province in other regions necessitates a thorough consideration of the local context, conditions, components, and the potential of farmers in those areas. 2. relevant agencies should provide support for the creative agricultural practices of farmers, both broadly and in specific innovative forms, in order to motivate farmers to develop agricultural products in novel ways and ensure long-term stability in agricultural production. 3. farmers should be encouraged to adopt and utilise modern technologies in their agricultural practices, as well as to engage in the online distribution of agricultural products. acknowledgments this work (grant no. rgns 65-226) was supported by office of the permanent secretary, ministry of higher education, science, research and innovation (ops mhesi), thailand science research and innovation (tsri) and maejo university. references abiri, r., rizan, n., balasundram, s. k., shahbazi, a. b., & abdul-hamid, h. 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(2015), 5) effective agricultural methods, including contemporary farming techniques, may provide safe, high-quality food that meets strict health and safety regulations, benefiting customers (basu et al., 2018), 6) sustainable agriculture methods including crop rotation, soil conservation, and integrated pest control promote ecosystem health, biodiversity preservation, and climate change mitigation (muhie, 2022). with the passage of time, the concept of csr has become important for the developed as well as the developing economies. its prime reason is that the beneficiary of csr is the direct society. csr is all about releasing the sector's responsibilities towards society (oguntade & mafimisebi, 2011; upadhyay, 2019). keeping in view its benefits to society the developed economies have framed laws to adopt it as being a mandatory factor. csr has become increasingly important in the agricultural industry. the agriculture industry is related to low-income individuals (de olde & valentinov, 2019). csr motivates farmers, which leads to a higher outcome of agricultural products owing to farmers' unique efforts. firms that have engaged in agriculture have focused their csr initiatives on improving agricultural methods, conserving natural resources, lowering cultivation and external input costs, and so on (de olde et al., 2019). keeping in view the importance of csr for agriculture the current study has explored it. vietnam has had rapid economic development, aided by the labour-intensive manufacturing sector's exports as a result of the implementation of the doi moi economic reform. viet nam became a "middle-income country" in 2008, when its per capita gross national income (gni) topped $1,000, according to the world bank definition (phi & bui, 2022). while its fast industrial expansion is often highlighted, vietnam's agriculture, particularly the forestry and fishery subsectors, is a prominent player in global commodities markets. vietnam's labour-intensive manufacturing sector has been the main driver of the country's rapid economic development. when vietnam's per capita gross national income (gni) surpassed $1,000 in 2008, the world bank classified the nation as a "middleincome country” (ngoc et al., 2021). vietnam's agriculture, including the forestry and fisheries subsectors, has a substantial presence in global commodities markets, despite the country's fast industrial expansion being the focus of attention. new long-term plans for agricultural growth was the government in 2022 (lam et al., 2022). these policies set 2030 goals and provide a vision for agricultural development by 2050. in addition, the government developed that plan, which included goals for 2030 as well as a 2045 vision. the agriculture sector's sustainable development is emphasized in this strategy. these measures recognize the advancements made by vietnam in the fields of agriculture and rural development in recent years and establish a 3% annual growth objective for the agricultural sector until 2030 (nguyen-anh et al., 2022). as a result of these measures, labour productivity targets i.e., 5.5 to 6% till 2030 were established for the first time in the history of agricultural development and policy studies. the growth rate of the agricultural sector is given in figure 2. figure 2: agricultural growth in vietnam. moreover, the share of workers in the agricultural sector was determined at 30% of the total employed population by 2020, which was actually met in 2021 (hoang et al., 2022). furthermore, the plan calls for the development of human resources, including various forms of training not just for farmers but also for those in allied fields such as machinery and services, as well as government officials. one of the new and essential objectives of these plans is to combine agricultural expansion with environmental conservation. such plans and policies in all agriculture agbioforum, 26(2), 2024 | 3 man et al. — financial resources and economic development: role of corporate social responsibility on agricultural growth in vietnam subsectors, including cultivation, livestock, forestry, and aquaculture, highlight the importance of environmental protection, greenhouse gas emissions reduction, and climate change adaptation (tran et al., 2022). despite the country is facing numerous agriculture issues like 1) climate changes (phi et al., 2022), 2) lack of skilled labour (ngoc et al., 2021), 3) increased competition (nguyen-anh et al., 2022), 4) lack of modern world technology (nguyenanh et al., 2022), 5) low rate of csr (ngoc et al., 2021), 6) less profitability due to high production costs (lam et al., 2022) the country has evolved in this sector. the present study has addressed the following gaps that exist in the literature investigation of the model consisting of the factors i.e., csr, sustainable agriculture development along with the dual moderation effect like 1) financial resources as well as economic development, particularly in vietnam. further, 1) upadhyay (2019), mazur-wierzbicka (2015) and de olde et al. (2019) explored the nexus of csr and agriculture development. however, the present study added the dual moderation effect of financial resources and economic development, 2) choi et al. (2021), adomako & ahsan (2022) and owusu et al. (2023) explored the moderating effect of the financial resources in multiple relationships at different times, hence, the same is also employed here in the relationship between csr and agriculture development particularly in vietnam. 3) welsh et al. (2018), zhao et al. (2019) and zhao et al. (2022) explored the moderating effect of the economic development in multiple relationships at different times, hence, the same is also employed here in the relationship between csr and agriculture development particularly in vietnam. likewise, the other studies the significance of the present study is 1) it highlights the need as well as the importance of csr for the development of agriculture in any country, 2) the study also resulted in the addition of the literature on the concept of csr and agriculture development, 3) the study also helpful the professionals associated with the concept of csr and agriculture development to have more understanding and application of the concept. literature review as a result of modernizing european agriculture crop yields and animal production have increased rapidly since the 1950s. since then, there has been a sharp fall in the number of farms, and those that have remained have frequently become more specialized, larger, more intense, and more automated. while modernization has helped europe enjoy more inexpensive and secure food, these advancements have not come without a price (al-haq & yuliati, 2024). the environmental effects of agriculture, such as greenhouse gas emissions and effects on biodiversity, water quality, and air quality, account for a significant portion of its costs. additionally, agriculture increases competition for natural resources such as fossil fuel, phosphorous, water, and land (mishra & mohanty, 2024). even contemporary methods of producing renewable energy on farms, such as those utilizing postharvest residues, may increase competition rather than lessen it because these residues and other biomass can be put to better uses, like enhancing soil quality or providing feed for livestock. concerns about how agricultural methods affect society have been just as significant as those about how agriculture affects the environment (de olde et al., 2019). growing public and political discourse has focused on the potential health concerns associated with agricultural production (such as living near farms, various food scandals, and the effects of farming techniques on animal welfare). in light of this, academics and industry professionals concur that agriculture is being held more and more responsible for its effects on the environment and society (mohanapriya et al., 2015). csr offers farmers and other agricultural players a topnotch avenue to fulfil their moral obligations. producers and merchants are demonstrating their commitment to sustainability concerns including animal welfare and the environment by participating in csr programs at an increasing rate (kambalame & de cleene, 2006). farmers are working harder than ever to track and report on how their output is affecting a variety of sustainability-related concerns. the adoption of certification programs for sustainable food items has grown quickly in tandem with this trend. farmers and merchants are progressively organizing additional csr projects (mijatović et al., 2021). due to the lack of communication between farmers and customers, consumers are becoming more and more reliant on producer and retailer initiatives to learn about the farming methods and values used in the production of their food. india is one of those economies in the world which has a reliance on agriculture. the nexus between csr and agriculture growth was explored by upadhyay (2019) in india. publicly available data from 20 indian corporations was selected as a sample. the collected sample data was analyzed by employing the simple regression technique. the results conclude that agriculture receives considerably less csr funding as compared to other industries like healthcare, education, and the arts and entertainment. additionally, several sizable companies were giving freely of their profits to corporate social responsibility (csr) projects even prior to the introduction of csr rules in the companies act of 2013. for the benefit of a wider segment of society, a method to prevent the overlap of various government programs and csr initiatives is required. irrespective of the region, csr is commonly important for agriculture development as there is a large number of any country's population associated with this sector. accordingly, mazur-wierzbicka (2015) tested the importance of csr for agriculture growth in european agriculture. the results proposed that as per the tenets of the europe 2020 strategy, the cap of 06 years i.e., 2014 to 2020 ought to be incorporated into an eu economic transition towards a sustainable economy. this implies that a more sustainable and better-suited cap to issues related to the economy, ecology, and territory is needed. thus, the following hypothesis developed from the above discussion. h1: csr significantly influences agriculture growth. the economy of any country is basically the combination of multiple sectors. the overall performance of these sectors decides the direction of the economy whether agbioforum, 26(2), 2024 | 4 man et al. — financial resources and economic development: role of corporate social responsibility on agricultural growth in vietnam positive or negative. every sector of the economy has its own importance according to the country’s needs. but some sectors are commonly important for every country's economy like agriculture, and energy. agriculture is one of the sectors which fulfils people's basic desires like food (beckman & countryman, 2021). most people associated with this sector are mediocre therefore they always remain in core need of financial as well as other types of support (jordan et al., 2021). the concept of csr is the ultimate solution to this issue. literature also proposed that csr is strongly associated with agriculture growth (ika et al., 2021). on the other side many times the sector witness’s low contribution of csr due to numerous reasons like low income, low production, and high production expenses. in such a scenario the association between csr and agriculture become weak (fortunati et al., 2020). the ultimate solution is the availability of financial resources. the financial resources would be enhanced as a result of more profit, low production cost, low production expenses, and cheap labour. these resources would result in enhancing the financial position of any company. the more the financial resources the agriculture sector plays have the more they will perform the csr (uduji et al., 2021). thus, the financial resources would intervene as moderators in such cases. literature also proposed that financial resources are an active moderator (adomako et al., 2022; owusu et al., 2023). in this context, an investigation of the nexus between political turnover and firms' strategic change by employing the moderation effect of financial resources was done by choi et al. (2021). a sample of 16451 observations from the tenure of 2008 to 2015 was collected and tested with the help of spss. the results conclude that financial resources are an active moderator. thus, the following hypothesis developed from the above discussion. h2: financial resources significantly moderate the nexus between csr and agriculture growth. the economy of any country is the driver to decide the future of the country's overall progress in the standard of living as well as the business sector. the economic position would enable the positive in every section of the country. every sector of the country is dependent on the economy with the view to support in terms of policies (radchenko et al., 2020). there are numerous sectors in an economy some are most important because of their nature like agriculture. the agriculture sector is directly associated with natural resources like land, and water. the agricultural sector is an essential part of the country's economic, social, and environmental fabric, helping to provide food security, economic growth, rural development, and environmental sustainability. investing in and sustaining agriculture is critical to the nation’s overall well-being and economy. however, without economic support, the development of the sector can’t even be imagined. one of the best ways to support this sector is csr (vrabcová & urbancová, 2021). however, in most economies of the world, the sector avoids csr due to factors like low income, low production, and high production expenses. in such a scenario the stable economies support the sector and ensure the csr (srivetbodee & igel, 2021). the economy supports the sector in the form of supportive policies, tax rebates, low labor, and subsidies on production materials (chebokchinova & kapsargina, 2021). such support results in increased the company’s profitability and enables them to perform csr in order to support the society (beckman et al., 2021). such support results in an increase in the agriculture sector-related people's motivation and performance with more passion. thus, in such a situation economic development acts as a moderator in the relationship between csr and agriculture development. literature also proposed that economic development is an active moderator (zhao et al., 2019; zhao et al., 2022). in this context, welsh et al. (2018) explored the moderating effect of economic development in the nexus between business family interference and female entrepreneurs. a sample of 245 female entrepreneurs in turkey was analyzed with the help of regression analysis. the results of the study concluded that there is an association between business family interference and female entrepreneurs and economic development acts as a moderator in this relationship. thus, the following hypothesis developed from the above discussion. h3: economic development significantly moderates the nexus between csr and agriculture growth. research methods the study investigates the impact of csr on the agricultural growth and also investigates the moderating role of financial resources and economic development among the nexus of csr and agricultural growth in vietnam. the study collected the data from the agricultural sector employees who are engaged in csr activities using surveys. the items were used to measure the understudy variables such as csr is measured with eight questions (john et al., 2019), financial resources is measured with five items (scarpellini et al., 2018), economic development is measured with four questions (rasoolimanesh et al., 2019) and agricultural growth is measured with five items (tamsah & yusriadi, 2022). table 1 shows these measurements. the study chosen the agricultural sector employees who are engaged in csr activities as the respondents. these employees are selected based on purposive sampling. the surveys were distributed to the chosen employees by personal visits. the researchers have distributed 496 surveys but only 290 valid responses were received after two weeks. these valid responses have approximately 58.47 percent response rate. in addition, the study also checks nexus among variables and data reliability using smart-pls. it is a perfect tool for the analysis of primary data that shows the perfect outcomes even the researchers used the complex frameworks (hair et al., 2017). finally, the study used one predictor named corporate social responsibilities (csr), two moderating variable named financial resources (fr) and economic development (ed) and one predictive variable named agricultural growth (ag). these variables are shown in figure 3. agbioforum, 26(2), 2024 | 5 man et al. — financial resources and economic development: role of corporate social responsibility on agricultural growth in vietnam table 1: measurements of variables. variables items statements sources csr csr1 contributing to the well-being of employees is a high priority of agricultural sector. (john et al., 2019) csr2 contributing to the well-being of customers is a high priority of agricultural sector. csr3 contributing to the well-being of suppliers is a high priority of agricultural sector. csr4 contributing to the well-being of the community is a high priority of agricultural sector. csr5 environmental issues are integral to the strategy of agricultural sector. csr6 addressing environmental issues is integral to the daily operations of agricultural sector. csr7 agricultural sector takes great care that our work does not hurt the environment. h. csr8 agricultural sector achieves its short-term goals while staying focused on its impact on the environment. financial resources fr1 % of components of the product or service that have been replaced by innovative ones to comply with environmental regulations. (scarpellini et al., 2018) fr2 % of the total amount of the company’s r&d investments is invested in environmental r&d, eco-design or similar. fr3 % of the company’s total revenues invested in environmental r&d (internal or external) for eco innovating. fr4 % of the company’s total revenues invested in innovative equipment/machines to reduce the company’s environmental impact. fr5 % of the investments in environmental r&d, eco-design or similar that are financed with the company’s own funds. economic development ed1 agricultural development creates more jobs for my community. (rasoolimanesh et al., 2019) ed2 agricultural development attracts more investment to my community. ed3 our standard of living increases considerably because of agriculture. ed4 agricultural development provides more infrastructures and public facilities (roads, shopping malls, etc.). agricultural growth ag1 aware that the quality of knowledge is essential in mapping problems prowess. (tamsah et al., 2022) ag2 competent extension agents following the needs in the field in delivering material to farmers, qualified skills are needed ability. ag3 able to deliver extension materials by the agricultural development program. ag4 trying to change the attitude of the farmers according to the rules and conditions in the field. ag5 encourage the search for solutions in solving farmer problems. figure 3: theoretical model. research findings the study investigates the impact of csr on the agricultural growth and also investigates the moderating role of financial resources and economic development among the nexus of csr and agricultural growth in vietnam. the study examines the correlation between the items that exposed the convergent validity. the outcomes show that the average variance extracted (ave) and factor loadings values are not cross the limits of less than 0.50. the results also show that the composite reliability (cr) and alpha values are not cross the limits of less than 0.70. these values exposed a high correlation between items and also exposed valid convergent validity. these results are mentioned in table 2. corporate social responsibility economic development financial resources agricultural growth agbioforum, 26(2), 2024 | 6 man et al. — financial resources and economic development: role of corporate social responsibility on agricultural growth in vietnam table 2: convergent validity. constructs items loadings alpha cr ave agricultural growth ag1 0.868 0.882 0.914 0.680 ag2 0.835 ag3 0.815 ag4 0.811 ag5 0.792 csr csr1 0.844 0.931 0.943 0.676 csr2 0.886 csr3 0.822 csr4 0.776 csr5 0.767 csr6 0.824 csr7 0.775 csr8 0.875 economic development ed1 0.865 0.899 0.929 0.766 ed2 0.875 ed3 0.881 ed4 0.882 financial resources fr1 0.549 0.844 0.882 0.610 fr2 0.887 fr3 0.916 fr4 0.904 fr5 0.552 the study examines the correlation between the variables that exposed the discriminant validity. the outcomes show that the values that show the correlation with variable itself are not cross the limit of less than the values that show the correlation with other variables. these values exposed a low correlation between variables and also exposed valid discriminant validity. these results are mentioned in table 3 and table 4. the study examines the correlation between the variables that exposed the discriminant validity. the outcomes of heterotrait monotrait (htmt) show that the values are not cross the limit of more than 0.85. these values exposed a low correlation between variables and also exposed valid discriminant validity. these results are mentioned in table 5. finally, the path analysis shows the association among variables and the outcomes revealed that the csr have a positive association with agricultural growth in vietnam and accept h1. the results also exposed that the financial resources and economic development significantly moderates among csr and agricultural growth in vietnam and accept h2 and h3. these results are mentioned in table 6. table 3: fornell larcker. ag csr ed fr ag 0.824 csr 0.518 0.822 ed 0.405 0.427 0.875 fr 0.446 0.491 0.534 0.781 table 4: cross-loadings. ag csr ed fr ag1 0.868 0.426 0.344 0.347 ag2 0.835 0.440 0.319 0.406 ag3 0.815 0.412 0.337 0.341 ag4 0.811 0.371 0.300 0.293 ag5 0.792 0.471 0.359 0.431 csr1 0.491 0.844 0.347 0.416 csr2 0.453 0.886 0.368 0.430 csr3 0.446 0.822 0.352 0.454 csr4 0.396 0.776 0.348 0.400 csr5 0.420 0.767 0.332 0.389 csr6 0.405 0.824 0.367 0.352 csr7 0.304 0.775 0.349 0.346 csr8 0.454 0.875 0.354 0.423 ed1 0.344 0.315 0.865 0.453 ed2 0.344 0.396 0.875 0.483 ed3 0.324 0.362 0.881 0.447 ed4 0.397 0.416 0.882 0.483 fr1 0.181 0.251 0.360 0.549 fr2 0.402 0.463 0.376 0.887 fr3 0.419 0.442 0.396 0.916 fr4 0.441 0.442 0.354 0.904 fr5 0.186 0.252 0.362 0.552 table 5: heterotrait monotrait ratio. ag csr ed fr ag csr 0.561 ed 0.450 0.466 fr 0.475 0.530 0.716 figure 4: measurement model assessment. agbioforum, 26(2), 2024 | 7 man et al. — financial resources and economic development: role of corporate social responsibility on agricultural growth in vietnam table 6: path analysis. relationships beta standard deviation t statistics p values csr -> ag 0.389 0.064 6.111 0.000 ed -> ag 0.214 0.061 3.495 0.001 fr -> ag 0.104 0.076 1.358 0.177 ed x csr -> ag 0.241 0.061 3.930 0.000 fr x csr -> ag 0.245 0.064 3.844 0.000 figure 5: structural model assessment. discussion the study investigates the impact of csr on the agricultural growth and also investigates the moderating role of financial resources and economic development among the nexus of csr and agricultural growth in vietnam. the results indicated that csr has a positive relationship with agriculture growth. these results are in line with popova et al. (2019), which implies that under csr, such practices are performed which creates a comfortable work environment for the workers, gives them health protection, and their needs are also considered. thus, the firms may have employee loyalty and retention, creating sustainability in agricultural growth. these results are supported by biró & szalmáné csete (2021), which states that the agricultural firms following the csr regulations, examine the impacts of different practices on the products they produce and natural environment where these firms are operating. they apply only those resources and techniques which ecoand socio-friendly. hence, they save environment and resources for their business and achieve sustainable agricultural growth. these results also agree with srivetbodee et al. (2021), which highlights that the csr execution protects the crops production and the quality of agro-based products. it leads to sustainable agricultural growth. the results indicated that financial resources plays a significant moderating role between csr and agriculture growth. these results are in line with hamdoun et al. (2022), which claims that the financial resources with a firm strengthen its ability to acquire the things and services with better quality and efficiency. these firms are in a position to undertake csr practices specified for the wellbeing of stakeholders. moreover, using the financial resources to the possible extent, change can be brought into the business and accelerate the growth rate. so, financial resources moderates between csr and agriculture growth. these results are supported by ivashkiv et al. (2020) which implies that financial resources help firms execute csr practices and increase agriculture growth. so, it improves the relationship between csr and agriculture growth. these results also agree with cristea et al. (2022), which states that the financial resources make the firms execute csr practices and improve agriculture growth. the results indicated that economic development plays a significant moderating role between csr and agriculture growth. these results are in line with sharma & sathish (2022), which highlights that when economic development is high, government entities are active in regulating the firms. in this situation, csr activities are executed and therefore, agriculture growth is likely to be improved. these results are supported by fortunati et al. (2020), which posits that in case there is higher economic development, csr can be executed effectively and agriculture growth can be improved. these results also agree with mello et al. (2021). according to this previous study, when there is higher economic development, csr makes higher contribution to agriculture growth. implications the present article addresses the current need of agriculture growth, the subject has been illumined in different previous studies. but the present study framework is a great contribution to literature and provides directions to the researchers and academics in future. first, in the previous literature, authors took any of the environmental, ethical, philanthropic, and economic responsibility, while checking the impact of csr on agriculture growth. the present study makes literary contribution by taking all csr responsibilities under consideration while checking their impact on agriculture growth. second, as addition to literature, the current study sheds light on the moderating role of financial resources and economic development between csr and agriculture growth. the present study has agbioforum, 26(2), 2024 | 8 man et al. — financial resources and economic development: role of corporate social responsibility on agricultural growth in vietnam vital significance to developing countries like vietnam where a large population is associated with the agriculture sector and the economies make high revenues from this sector. the current study enlightens the ways to accelerate and sustain the agriculture growth rate making guidelines for regulators and economists. the study guides that the environmental regulators, economist, and the business management must assure that the agricultural firms implement the csr practices while undertaking their business activities. it would help to create sustainability in agricultural growth. the study also suggests that the agricultural firms must have large amount of financial resources in their use so that are in position to execute csr practices. thus, the firms with csr can bring improvement in agriculture growth. it also conveys that the government regulators and economists must enact policies and strategies for improving economic growth so that csr practices are executed by businesses. thus, the firms with csr can bring improvement in agriculture growth. the study provides the guidelines to the policymakers in establishing policies related to achieve the agricultural growth using effectively csr implementation and enough financial resources and effective economic development. limitations and conclusion the current study also encounters some limitations and requires attention from future researchers. the current study carries a small framework containing a single independent variable like csr influencing agricultural growth. authors should also create space for other factors having more significant influence on agricultural growth. the data for the research were taken from vietnamese economy. thus, study is solely based on single country facts. a single country data behind conducting a research, cannot give high validity to finding. so, there is need to have evidence from multiple economies. the aim of the study is to analyse the impacts of csr practices on agricultural growth. the authors also had the aim to check what role, the financial resources an economic development could play between csr and agriculture growth. actual based quantitative data for the study were acquired from vietnam. the analysis of the acquired data showed a positive relationship between csr and agriculture growth. the results revealed that when the agricultural firms execute csr practices like philanthropic, ethical, environmental, and economic responsibility, they assure a productive environment, availability of good quality resources, improve employee work efficiency and improves good will. thus, they not only attain high revenues but create sustainability in agriculture growth. the results also indicated that financial resources play a significant moderating role between csr and agriculture growth. when large amount of financial resources are available to the agricultural firms, they can form and implement different strategies under csr practices and bring change in agricultural practices accordingly. similarly, financial resource allow to apply improved resources, infrastructure, and material gaining agricultural goals better. so, financial resources improves the relationship between csr and agricultural growth. the study also concluded that economic development plays a significant moderating role between csr and agriculture growth. when the country makes higher economic development, the agricultural firms are able to implement csr practices and also have the chance to expand business activities. so, agricultural growth can be accelerated. references adomako, s., & ahsan, m. 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(2023), nanotechnology's ability to overcome nanoscale material limits and address sustainability and environmental issues in various fields are driving interest in this topic. suggests that nanoparticles, nanofibers, and nanocomposites may clean the environment. nanotechnology-enabled photocatalytic coatings can clean water and air, according to recent research of huang et al. (2023). nanoparticle sensors can regulate pollutants, monitor the environment in real time, and manage resources proactively. huang et al. (2023) findings imply that nanotechnology may benefit the environment by encouraging new materials and technologies. li et al. (2023) study indicated that corporate cultures influence nanotechnology utilization, which could impact scientific and environmental sustainability. several studies have shown that an organization's culture affects employee retention and creativity. it's well known that an organization's values, expectations, and beliefs affect employee behavior (harsanto et al., 2023). nanotechnology companies are noted for their environmental sustainability, adaptability, and collaboration, according to the previously listed companies. encouragement of a culture that values innovation and cautiously absorbs new technology will benefit us business leaders and the corporate community (çaldağ et al., 2023). nanotechnology may improve stakeholder participation, environmental performance, and competitiveness (reyes ruiz, 2023). this new economic sector may lead eco-friendly innovation. the fields of commercial ethics, ecological efficiency, and nanotechnology have all seen significant advancements (soomro et al., 2023). however, further empirical research mailto:fmuthuswamy@kfu.edu.sa mailto:directormba@hicas.ac.in agbioforum, 25(2), 2023 | 194 abdulaziz aljoghaiman. — food safety and security in eastern province of saudi arabia: role of sustainable supply chain management practices is required to provide a deeper understanding. the amount of study on how nanotechnology affects environmental effects is increasing (huang et al., 2022). but these studies frequently ignore the impact of things like business culture or political pressure (ma et al., 2022). the significance that corporate culture plays in promoting innovation in nanotechnology and enhancing environmental performance has not received enough attention. as tjebane et al. (2022) point out, previous research has mainly disregarded the political reasons for using nanotechnology to advance environmental sustainability. scientific developments in the domains of environmentally friendly technologies and nanotechnology can be strongly influenced by government laws, rules, and incentives (moon et al., 2022). an organization's long-term viability is influenced by a number of factors, including its environmental policies, breakthroughs in nanotechnology, internal political pressures, and business culture (ramogayane, 2022). this study explores the complex relationships between environmental performance, company culture, political pressure, and nanotechnology innovation in an effort to reconcile the previously described disparities. theoretical frameworks including organizational culture theory (clarysse et al., 2022), institutional theory (indiya et al., 2021), and innovation diffusion theory (pan et al., 2021) are used to achieve this. the research attempts to address two distinct questions: first, what is the link between environmental performance and innovation in nanotechnology, and how is it influenced by governmental obstacles and business culture? second, how is this link mitigated by business culture? this study adds to a better understanding of how nanotechnology innovation could help environmental sustainability in organizational environments by combining many theoretical frameworks and using rigorous empirical methodologies. 2. literature review nanotechnology's unparalleled accuracy and adaptability have transformed the printing and coatings industries (raeesi nafchi et al., 2021) .the nanoscale has enabled scientists to increase ink functionality and develop novel coatings with improved qualities (ghiasi et al., 2021). nanoparticle-based inks, which increase conductivity, color intensity, and durability, represent a significant improvement. nanoparticles in ink formulations enhance resolution and print quality (licup et al., 2021). this might allow flexible electronics, sensors, and medicinal devices. nanotechnology enhances uv, anti-corrosion, and scratch coatings. molecularly tailored nanocoatings prolong printed materials and substrates in many applications by improving adhesion and coverage (bensaude-vincent, 2021). nanotechnology enhances printing and coating performance and sustainability since nanoparticles use less, decreasing waste and environmental impact (cummings et al., 2021). ashraf et al. (2021) research predicts nanotechnology will seamlessly integrate into the printing and coatings sectors, spurring innovation and transforming how consumers use printed products. nanotechnology's components affect a company's environmental performance. many sectors use nanotechnology to improve materials, processes, and nanoscale applications (renn et al., 2006) . advances include nanoparticles, nanocomposites, and nanodevices in products and processes (hadj, 2020). organizational environmental performance is its ability to reduce environmental impact and increase resource efficiency and sustainability (chen et al., 2020). reduce greenhouse gas emissions, waste, water, and energy using sustainable supply chains. nanotechnology innovation has been empirically connected to environmental performance. many studies suggest nanotechnology may improve environmental sustainability for businesses across industries. ghazinoory et al. (2020) claim nanoparticles can make sturdy, lightweight, energy-efficient products. photocatalytic coatings, nanofiltration membranes, and nanocomposite materials have considerably improved wastewater, air, and pollution treatment (bowman et al., 2020; gonzales-gemio et al., 2020; macnaghten et al., 2020). modern nanotechnology can enhance resource efficiency and minimize pollution, boosting sustainability, as shown in these research. studies show that nanotechnology innovation impacts an organization's environmental performance. nanotechnology reduces waste, pollution, and resource use (justo-hanani, 2024b). nanomaterials enhance sustainability, process optimization, and product innovation (justo-hanani, 2024a). a corporation that invests in cutting-edge nanotechnology may perform better environmentally. our worldview stresses nanotechnology's environmental benefits and importance. h1. nanotechnology innovation has a significant impact on the environmental performance of an organization. early studies related organizational culture to nanotechnology innovation. numerous studies show that nanotechnology changes organizational norms, attitudes, and behaviors. nanotechnology innovation firms foster creativity, risk-taking, and learning, according to farooqi et al. (2023). nanotechnology adoption needs multidisciplinary collaboration and a willingness to try new things, which fosters creative organisational cultures (huang et al., 2023). nanotechnology's communication and work practises may impact employee attitudes and organisational culture (li et al., 2023). researchers claim progressive leaders foster nanotechnology innovation through experimentation, adaptability, and flexibility (çaldağ et al., 2023). nanotechnology can alter company culture, altering communication, problem-solving, and interaction. empirical research suggest nanotechnology innovation may affect organizational culture (soomro et al., 2023). nanotechnology may alter organisational culture (ma et al., 2022). nanotechnology innovators are courageous, versatile, and cooperative (moon et al., 2022). nanotechnology integration affects an organization's structure, protocols, communication, and more, according to clarysse et al. (2022). pan et al. (2021) study found that job duties, expectations, and attitudes may alter employee behavior. nanotechnology may transform corporate practices, attitudes, and behavior. h2. nanotechnology innovation has a significant impact on the organizational culture. research has examined the complex relationship between nanotechnology, organizational culture, and the agbioforum, 25(2), 2023 | 195 environment. research reveals company culture affects creativity and environmental norms. ghiasi et al. (2021) say management culture affects staff creativity and sustainability. risk-taking, collaborative, and adaptable companies may employ nanotechnology (bensaudevincent, 2021). corporate culture affects workers' sustainability program comprehension, commitment, and involvement, which impacts environmental performance, according to ashraf et al. (2021). environmentalism, resource conservation, and pollution control gain support. studies show company culture influences nanotechnology innovation and environmental performance. empirical data suggests that organizational culture impacts environmental performance and nanotechnology innovation. company culture affects employees' innovation and sustainability attitudes, behaviors, and decisions (hadj, 2020). nanotechnology discoveries for environmental performance are easier to embrace and apply in an organisation that values innovation, cooperation, and environmental responsibility (renn et al., 2006). however, a company culture that resists change, compartmentalizes cognitive processes, and focuses on the present may hinder nanotechnology-based solutions and environmental sustainability (cummings et al., 2021). licup et al. (2021) study suggests company culture will moderate nanotechnology innovation's environmental impact. the importance of a sustainable and technologically advanced environment is highlighted. h3. organizational culture significantly mediates the relationship of nanotechnology innovation and environmental performance. government pressure, nanotechnology innovation, and environmental performance are linked, according to empirical studies. government environmental rules, norms, and incentives affect business innovation and sustainability, according to raeesi nafchi et al. (2021). strict environmental legislation and enforcement benefit businesses, according to recent studies. nanotechnology and other sustainable methods can reduce environmental damage, according to recent studies (indiya et al., 2021). nanotechnology research that reduces waste, energy, and pollution can get government subsidies, funding, and tax incentives (ramogayane, 2022). without rules, companies may be unwilling to invest in green technologies. political pressure affects nanotechnology innovation and environmental performance, according to extensive study (harsanto et al., 2023). a recent study found that political pressure affects nanotechnology innovation and environmental performance. tjebane et al. (2022) found that government policies affect business investment, innovation, and environmental goals. due to environmental limitations, corporations must adopt greener technology and procedures. huang et al. (2022) found that nanotechnology can improve innovation and environmental performance. nanotechnology may improve the environment. government aid and strong regulations may limit business goals and reduce reform urgency (reyes ruiz, 2023). political pressure may affect nanotechnology innovation and the environment. government rules and regulations are essential for technical innovation and environmental sustainability. h4. government pressure significantly moderates the relationship of nanotechnology innovation and environmental performance. figure 1: research model. 3. methodology the study was conducted in the kingdom of saudi arabia, with a focus on those with expertise in the printing and coatings sector who use nanotechnology. the study involved 187 employees from various companies in the industry. the variables employed in this study were adapted from earlier research to ensure validity and reliability. measures of company culture, environmental performance, political pressure, and nanotechnology innovation were explicitly utilized. these scales have been previously validated and are well-regarded in the literature. this research has used three items scale of zwirtes et al. (2014) to measure the nanotechnology innovation. moreover, government pressure was measure on four items scale in this research (wang et al., 2021). organizational culture was measure on eight items scale (three items of which were dedicated to measure competence in visionary leadership, and five were for competence in systemic improvement); the scale was adopted from the work of boychuk et al. (2017). the environmental performance was measured on a six items scale in this research (wang et al., 2021). data was collected through a computerized selfadministered survey. this study explored various aspects including attitudes towards environmental performance, company culture, political pressure, and nanotechnology innovation. participants were provided with clear instructions on informed consent prior to taking the survey. data analysis was done with stata-sem. hypotheses with many components and complicated variable connections can be tested using structural equation modeling. to examine political pressure, company culture, environmental performance, and nanotechnology innovation, the data was thoroughly examined. several precautions were taken to ensure measuring equipment reliability. first, scales with demonstrated validity and reliability in prior studies were carefully selected. to test survey question clarity, a small sample participated in a pilot research. cronbach's alpha was used to assess the study's scales' validity. demographic data were utilized as statistical controls in sem models to support conclusions. age, gender, work experience, job title, and education are typical demographic data. these criteria were carefully evaluated to assure precision and minimize possible influences affecting the outcomes. 4. results table 1's results provide light on the consistency and reliability of the study model's quantifiable variables. hair et al. (2017) found that all variables had cronbach's alpha values over 0.7. agbioforum, 25(2), 2023 | 196 abdulaziz aljoghaiman. — food safety and security in eastern province of saudi arabia: role of sustainable supply chain management practices variable internal consistency dependability looks good. cronbach's alpha of 0.789 indicates strong reliability for nanotechnology innovation issues. government pressure, competence culture, and environmental performance have cronbach's alpha coefficients of 0.825, 0.864, and 0.852. three variables have great internal consistency. this study shows that the data accurately represents the concepts being assessed, enhancing the dependability of the variable evaluation tool. table 1: cronbach's alpha. variable cronbach's alpha composite reliability average variance extracted (ave) nano-technology innovation 0.789 0.755 0.625 government pressure 0.825 0.887 0.566 competency culture 0.864 0.827 0.547 environmental performance 0.852 0.816 0.575 all variables' composite reliability coefficients surpassed 0.7, confirming the measurement model's internal consistency (fornell & larcker, 1981). composite reliability coefficients measure concept latent variable consistency with items, according to hair et al. (2017). composite dependability scores of 0.755, 0.887, 0.827, and 0.816 indicate dependable and consistent monitoring of nanotechnology innovation, government pressure, competence culture, and environmental performance. convergent validity is assumed for any ave values > 0.5 (hair et al., 2017). the ave reveals that the measured constructs are different by measuring variance capture relative to measurement error. validity and reliability evaluations prove the measurement model's endurance and comfort researchers about data quality for analysis. figure 2: estimated model. confirmatory factor analysis (cfa) results in table 2 are critical for measuring model validity. standardized factor loadings (oim coef.) for indicator items on their latent constructs show visible variable-construct correlation. statistically significant factor loadings show that indicator variables properly measure concepts. all three nanotechnology innovation (nti) indicator items (nti1, nti2, nti3) have substantial factor loadings (0.566 to 0.770, p < 0.001), confirming the construct's validity. the indicator items for government pressure (gp), competency culture (cvl), and environmental performance (ep) reinforce the validity of these categories, with factor loadings ranging from 0.330 to 0.921 (p < 0.001). the study's measuring approach was validated since the factors accurately reflect environmental performance, competency culture, government pressure, and nanotechnology innovation. table 2: confirmatory factor analysis. measurement oim coef. std. err. z p>|z| [95% conf. interval] nti1 1 (constrained) nti2 0.770 0.071 10.959 0.000 0.649 0.935 nti3 0.566 0.063 9.038 0.000 0.455 0.710 gp1 1 (constrained) gp2 0.901 0.082 11.050 0.000 0.761 0.885 gp3 0.708 0.071 10.049 0.000 0.585 0.873 gp4 0.330 0.066 5.075 0.000 0.207 0.472 cvl1 1 (constrained) cvl2 0.713 0.061 11.184 0.000 0.610 0.857 cvl3 0.857 0.078 10.511 0.000 0.724 0.842 csi1 0.731 0.085 8.654 0.000 0.580 0.924 csi2 0.816 0.066 12.465 0.000 0.706 0.973 csi3 0.892 0.066 13.088 0.000 0.786 0.852 csi4 0.807 0.066 11.665 0.000 0.696 0.964 csi5 0.921 0.072 12.920 0.000 0.802 0.885 ep1 1 (constrained) ep2 0.782 0.063 11.953 0.000 0.677 0.933 ep3 0.857 0.060 13.737 0.000 0.760 0.804 ep4 0.758 0.072 14.251 0.000 0.733 0.944 ep5 0.842 0.066 12.283 0.000 0.733 0.801 ep6 0.834 0.065 12.351 0.000 0.726 0.990 table 3 shows measurement item fitness statistics and measurement model performance. the composite reliability coefficient (crc) measures the original sample values-based internal consistency of each latent construct based on indicator items. nanotechnology innovation crc values are between 0.791 and 0.874, indicating build reliability. crc values of 0.580 to 0.676 indicate moderate to high government pressure internal consistency. the competency culture indicator items have crc values from 0.615 to 0.901, demonstrating measurement reliability variation. crc values range from 0.598 to 0.899, indicating moderate to high internal consistency in environmental performance. despite the majority of constructs having good internal consistency, more research is needed to ensure the validity of assessment within these constructs due to the variation in crc values among competency culture and environmental performance indicator items. the original sample values also assess the measurement model's applicability and guide future revisions to improve model fit and dependability. table 3: measurement items fitness statistics. variable indicator original sample nano-technology innovation nti1 0.851 nti2 0.874 nti3 0.791 government pressure gp1 0.676 gp2 0.668 gp3 0.593 gp4 0.580 competency culture cvl1 0.615 cvl2 0.901 cvl3 0.795 csi1 0.789 csi2 0.821 csi3 0.839 csi4 0.683 csi5 0.660 environmental performance ep1 0.873 ep2 0.899 ep3 0.809 ep4 0.757 ep5 0.889 ep6 0.598 agbioforum, 25(2), 2023 | 197 the measurement model's fit statistics in table 4 show how well it fits the data. the likelihood ratio chi-square value of 11471.839 indicates a significant difference (p < 0.001) between the proposed model and a fully fitted saturated model. a baseline model without correlations yields a significantly different chi-square statistic (12393.552) compared to the suggested model (p < 0.001). the suggested model may not match the data completely, but it matches it better than the baseline and saturated models. remember that chi-square statistics rely on sample size, hence more fit indices are needed to evaluate model fit. the likelihood ratio and baseline chi-square statistics' statistically significant p-values imply that the suggested measurement model differs from the saturated and baseline models, providing preliminary verification of its applicability. table 4: chi-square fit statistics. fit statistic value description likelihood ratio 11471.839 model vs. saturated p > chi2 0.000 chi2_bs (2356) 12393.552 baseline vs. saturated p > chi2 0.000 table 5 shows the saturated and estimated models' goodnessof-fit statistics and r-square values for each latent variable. lower standardized root mean square residual (srmr) values indicate better model fit compared to observed and model-implied covariance matrices. a srmr of 0.047 indicates that the saturated model fits the data well. the estimated model's srmr climbs to 0.066, indicating a little model fit drop. despite this small increase, the srmr value remains within an acceptable range, indicating that the calculated model fits the data well. r-square values for each latent variable in the model show how much exogenous variables explain endogenous variable variance. nanotechnology innovation has an r-square score of 0.505, indicating that exogenous causes explain 50.5% of variation. government pressure has an r-square value of 0.596, indicating that external variables explain 59.6% of the variance. competency culture has an r-square score of 0.227, showing that exogenous variables explain 22.7% of the variance. these r-square values show how much external factors explain endogenous variable variance, proving the model's ability to describe construct linkages. table 5: model goodness of fit statistics. variable saturated model estimated model r square srmr 0.047 0.066 nano-technology innovation 0.505 government pressure 0.596 competency culture 0.227 the relationship between nanotechnology innovation, environmental performance, and organizational culture is displayed in table 6's direct path analysis results. standard errors (std. err.) indicate estimate precision, while standardized path coefficients (oim coef.) display the direction and intensity of variable relationships. with a path coefficient of 0.214 (p < 0.001), there is a strong and positive correlation between environmental performance and nanotechnology innovation. this implies that an organization's environmental performance is enhanced by nanotechnology innovation. the significance of the link is confirmed by the path coefficient's 95% confidence interval (0.417, 0.321), which does not include zero. businesses that make innovative investments in nanotechnology may see improvements in their environmental performance. table 6: direct path analysis. oim coef. std. err. z p>|z| [95% conf. interval] nanotechnology innovation has a significant impact on the environmental performance of an organization. 0.214 0.104 2.111 0.001 0.417 0.321 nanotechnology innovation has a significant impact on the organizational culture. 0.895 0.075 2.948 0.000 0.530 0.801 organizational culture has a favorable and significant impact on nanotechnology innovation, as indicated by a path coefficient of 0.895 (p < 0.001). this suggests that nanotechnology innovation promotes creativity, teamwork, and environmental responsibility in organisations. path coefficient's 95% confidence interval (0.530, 0.801) supports the association's relevance. nanotechnology innovation-friendly companies are more likely to promote innovation and sustainable business practices. the direct path analysis shows that nanotechnology innovation profoundly impacts company culture and environmental performance. these findings demonstrate the importance of nanotechnology in organizational activities to foster a sustainable, innovative culture and positive environmental change. figure 3: structural model for path analysis. table 7 provides helpful information about the moderating and mediating roles played by organizational culture and governmental pressure on environmental performance and nanotechnology innovation. standard errors (std. err.) show estimation precision, while standardized path coefficients (oim coef.) show correlation direction and intensity. with a path coefficient of 0.212 (p = 0.008), organizational culture significantly mediates nanotechnology innovation and environmental performance. this shows that organizational culture is crucial to translating nanotechnology innovation into environmental performance. the path coefficient's 95% confidence interval (0.413, 0.318) supports the mediating effect's importance. firms with supportive organizational cultures are more likely to benefit from nanotechnology innovation's environmental benefits because they encourage agbioforum, 25(2), 2023 | 198 abdulaziz aljoghaiman. — food safety and security in eastern province of saudi arabia: role of sustainable supply chain management practices employees to adopt sustainable practices and promote good environmental change. table 7: mediating and moderating path analysis. oim coef. std. err. z p>|z| [95% conf. interval] organizational culture significantly mediates the relationship of nanotechnology innovation and environmental performance. 0.212 0.103 2.088 0.008 0.413 0.318 government pressure significantly moderates the relationship of nanotechnology innovation and environmental performance. 0.885 0.074 2.916 0.000 0.524 0.792 a path coefficient of 0.885 (p < 0.001) suggests government pressure considerably moderates the association between nanotechnology innovation and environmental performance. government pressure may strengthen the link between nanotechnology innovation and environmental performance. the route coefficients of 95% shows a significant moderating influence with confidence intervals of 0.524, 0.792. hence, it can be concluded that the progress in nanotechnology significantly improves the environmental performance of organizations and businesses operating under up-to-date environmental policies. this research findings highlight the significant impact of government pressure and organizational culture on environmental consequences of nanotechnology innovation. 5. discussion nanotechnology has emerged as a viable approach to solving environmental concerns and spurring innovation across industries, with the potential to greatly improve sustainability results. government pressure and business culture both have an impact on how companies use nanotechnology to meet environmental goals. the confirmed study hypotheses explain how political pressure, environmental performance, corporate culture, and nanotechnology innovation interact within companies. understanding the relationships among these components is essential to illustrating how developments in nanotechnology could facilitate the process of improving the environmental circumstances of businesses. the validation of the initial and subsequent hypotheses has uncovered the noteworthy influence of nanotechnology innovation on both environmental performance and company culture. companies may enhance their environmental performance and sustainability by using nanotechnology. nanomaterials are an effective way to achieve environmental and regulatory goals. minimizing waste, improving resource use, and limiting pollution can help organizations achieve sustainability goals. the confirmation of the second hypothesis shows that corporate culture promotes forward-thinking, ecofriendly business initiatives. a flexible, team-oriented, and environmentally sensitive organisational culture advances nanoscale technologies that increase environmental performance (huang et al., 2023). leadership is crucial to building corporate culture. reyes ruiz (2023) found that forward-thinking leaders value creativity, adaptability, and new ideas. these hypotheses underscore the relationship between environmental performance, nanotechnology innovation, and organizational culture. the influence of organizational culture on how employees perceive, act, and make decisions about adopting new technologies and sustainable practices is of great importance. therefore, nanotechnology innovation and environmental performance are closely influenced. a company must promote support, environmental responsibility and stewardship, experimentation, and continuous learning to successfully integrate nanotechnology into processes and products (ramogayane, 2022). vickram et al. (2023) study concluded that government r&d expenditure and eco-friendly technologies and methods may improve nanotechnology's environmental performance and innovation. according to soomro et al. (2023), emphasizing the relevance of eco-friendly corporate practices and technologies can boost nanotechnology innovation and environmental performance. several studies have provided evidence for the third and fourth hypotheses, which examine the impact of business culture and political pressure on environmental performance and nanotechnology innovation. business culture may link nanotechnology innovation with environmental performance. nanotechnology needs better acceptability, application, and durability. this research language promotes creativity, teamwork, and environmental consciousness. the firm promotes innovation, learning, and responsible management. indiya et al. (2021) analysis showed the company's environmental improvement. according to li et al. (2023), political pressure may impact nanotechnology innovation and environmental performance. due to severe regulations and enticing incentives, many firms adopt green goods and processes. linked nanotechnology to environmental performance. the study's findings have a significant effect on companies who print and cover products using nanotechnology. these factors are important inside the boundaries of the kingdom of saudi arabia (ksa). the field's goals of sustainability stand to gain a great deal from new technologies, as demonstrated by the positive relationship found between advances in nanotechnology and environmental performance. nanotechnology can be used to reduce environmental damage and promote economic growth, among other benefits. this is particularly true in view of the kingdom of saudi arabia's ambitious vision 2030 strategy, which emphasizes the importance of environmental sustainability and economic diversification. based on these findings, businesses in the kingdom of saudi arabia (ksa) are advised to invest research and development of nanotechnology applications as a top priority in order to enhance their environmental performance. this will be consistent with the country's overarching sustainability objectives. further highlighting the importance of contextual factors in influencing the relationship between nanotechnology innovation and environmental performance in saudi arabia are the moderating effects of government pressure and the mediating influence of organizational culture. in the kingdom of saudi arabia (ksa), organizations need to be creative and environmentally aware to keep up with agbioforum, 25(2), 2023 | 199 the rapidly evolving regulatory environment and the growing importance of sustainability programs. policymakers and regulatory bodies can play a major role in promoting and facilitating the adoption of environmentally friendly technologies by implementing supportive legislation and offering incentives. there are two approaches to this: developing incentive programs and regulatory frameworks. establishing cooperation between academic, commercial, and public entities may help the kingdom of saudi arabia fully use the transformative potential of nanotechnology innovation. by doing this, the kingdom would be able to address environmental issues and promote sustainable development in accordance with vision 2030's objectives. these theories show how nanotechnology, business ethics, environmental issues, and political power are linked. employee innovation and sustainability depend on company culture. environmental change may boost organizational culture. study nanotechnology and environmental stewardship. government pressure on environmental performance and nanotechnology innovation can impact company r&d and eco-friendly practises and technologies. nanotechnology, strong legal frameworks, and a good company culture may help organizations achieve sustainable development. implementing the ideas provides a complete examination of the complex interaction between business culture, environmental efficiency, political influence, and nanotechnology advancement. nanotechnology and excellent company culture can boost environmental impact, competitiveness, and stakeholder satisfaction. government regulations strongly impact environmental nanotechnology adoption. for innovation and sustainable development, governance, organization, and stakeholder participation is crucial. to accomplish sustainable development goals and beneficial environmental change, several aspects must be considered. they include political pressure, business culture, technical innovation, and sustainability. 6. conclusion a thorough examination of this research hypotheses revealed the complex interaction between organizational culture, government influence, environmental performance, and nanotechnology innovations. according to the findings, incorporating nanotechnology can improve organizational situations. nanotechnology and a healthy corporate culture can boost environmental performance while maintaining competitiveness and shareholder returns. this research emphasizes the need of collaboration across governments, organizations, and stakeholders in order to achieve innovation and sustainable development goals. it emphasizes how laws and regulations encourage nanotechnology for environmental sustainability. the findings help us understand how nanotechnology may improve the environment. they stress the need of holistic methods that take into account company culture, political influences, technological advancements, and environmental aims. organizations can use nanotechnology to address environmental issues and achieve sustainable development. continuous study and collaboration can create a more resilient and sustainable world for future generations. implications of the study environmental performance, organizational culture, government pressure, and nanotechnology innovation interact in complex ways in organizational contexts. this study has substantial theoretical implications. by showing how nanotechnology innovation affects environmental performance, the results advance theoretical frameworks like institutional theory, innovation diffusion theory, and organizational culture theory. organizations must build a creative and environmentally conscious culture because organizational culture is a critical mediator in translating technology discoveries into sustainable outcomes. government pressure was found to be a significant moderator, highlighting the importance of institutional and regulatory elements outside the corporation in deciding how companies adopt and deploy environmentally sustainable practices and technology. the theoretical insights presented here will help sustainable innovation researchers comprehend contextual elements that affect technical innovation and environmental performance. environmental sustainability groups, policymakers, and others may benefit from the study's findings. organizations may promote innovation, teamwork, and environmental stewardship by understanding how organizational culture influences sustainability. sustainability projects and employee involvement may require training, communication, and cross-functional cooperation. lawmakers may use government pressure data to create green technology incentives and rewards. sustainable regulations can motivate companies to innovate and enhance their environmental performance. this helps companies achieve sustainability. this report advises firms on nanotechnology for environmental sustainability during theoretical development and implementation. nanotechnology research aids governments and organizations in environmental sustainability. findings emphasize green and creative corporate cultures. such ideas may improve corporate creativity, teamwork, and sustainability. sponsoring staff training, developing cross-functional sustainability teams, and incorporating sustainability into performance assessments and awards are examples. sustainable and innovative organizations may promote nanotechnology adoption and deployment to improve environmental performance. the analysis also cites government pressure on enterprises to adopt green technologies. this research can help governments create nanotechnology innovation incentives and policies for environmental sustainability. such as tax incentives, grants, and finance for nanotechnology-based environmental solutions and regulations supporting green industrial materials and technologies. innovative sustainability concepts and laws may encourage nanotechnology research and sustainable business practices. sustainability stakeholders across industries and enterprises are affected by the study. the findings can help businesses, trade groups, and ngos enhance sustainable technology and practices. these stakeholders may promote sustainable technology and meet sustainability goals by highlighting nanoscale innovation's environmental benefits and best practices. in conclusion, this study's positive findings help agbioforum, 25(2), 2023 | 200 abdulaziz aljoghaiman. — food safety and security in eastern province of saudi arabia: role of sustainable supply chain management practices decision-makers, organizations, and interested parties use nanotechnology to improve environmental sustainability and promote a sustainable future. limitations and future research directions this study highlights the linkages between company culture, government pressure, nanotechnology innovation, and environmental performance, but future research should address various constraints. since the study only uses cross-sectional data, it is harder to determine why the factors are correlated. experimental or longitudinal designs may be used to identify causal correlations and better understand company culture, political pressure, nanotechnology innovation, and environmental performance over time. self-reported data from one source raises common method bias and social desirability in the study. to provide a more complete sustainability assessment, future research might combine a range of data sources with objective environmental performance assessments such pollution levels or resource consumption data. the study also targets a single business or location, limiting its applicability. to understand the dynamics, future research may examine government pressure, firm culture, nanotechnology innovation, and environmental performance across sectors, industries, and geographies. research may improve this study's findings and fix its flaws. first, future research may examine how employee attitudes, beliefs, and motivations affect the adoption and use of revolutionary nanotechnology for environmental sustainability. personality, external constraints, and organizational culture can affect policies and solutions. nanomaterials and nanodevices research may affect industry and application environmental performance. researchers can uncover sustainable technology investment and innovation opportunities using nanoscale technologies' features and environmental benefits. future research may examine how context affects environmental performance, business culture, political pressure, and nanotechnology innovation. industry competition, constraints, and stakeholder pressure. researchers may provide firms and governments more nuanced nanotechnology innovation suggestions to improve environmental sustainability by including these contextual factors. to conclude, overcoming these obstacles and exploring these research areas can help us understand the complex relationship between organisational dynamics, regulatory frameworks, environmental sustainability, and nanotechnology innovation. innovation adoption and sustainable development will improve. references acknowledgement this work was supported through the ambitious funding track by the deanship of scientific research, vice presidency for graduate studies 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(2021). a framework for the export development of nanotechnology products of knowledge-based companies in the construction industry: a grounded theory approach. international journal of business https://doi.org/10.1016/j.technovation.2020.102122 https://doi.org/10.1007/s11192-021-04022-w https://doi.org/10.3390/su122410232 https://doi.org/10.1016/j.jclepro.2019.119490 https://doi.org/10.3390/su15021549 https://doi.org/10.1016/j.ijpe.2022.108482 https://doi.org/10.3390/su15097571 https://doi.org/10.5897/ajbm2019.8763 https://doi.org/10.4337/9781800372870.00008 https://www.elgaronline.com/monobook/book/9781800372870/9781800372870.xml https://www.elgaronline.com/monobook/book/9781800372870/9781800372870.xml https://doi.org/10.3389/fenvs.2022.1091859 https://jestec.taylors.edu.my/special%20issue%20i%20acsat%202021/acsat%2021_1_4.pdf https://jestec.taylors.edu.my/special%20issue%20i%20acsat%202021/acsat%2021_1_4.pdf https://doi.org/10.1016/j.eap.2022.04.009 https://doi.org/10.1080/23299460.2020.1842643 https://doi.org/10.1080/23299460.2022.2043630 https://doi.org/10.1108/s0742-332220230000043002 https://doi.org/10.1007/s11356-021-14293-8 https://doi.org/10.1016/j.psep.2024.01.100 https://doi.org/10.1590/s0034-759020240301x agbioforum, 25(2), 2023 | 202 abdulaziz aljoghaiman. — food safety and security in eastern province of saudi arabia: role of sustainable supply chain management practices and development studies, 13(1), 75-93. doi: https://doi.org/10.22111/ijbds.2021.6581 ramogayane, r. 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(2022). organisational factors of artificial intelligence adoption in the south african construction industry. frontiers in built environment, 8, 823998. doi: https://doi.org/10.3389/fbuil.2022.823998 vickram, s., manikandan, s., deena, s., mundike, j., subbaiya, r., karmegam, n., et al. (2023). advanced biofuel production, policy and technological implementation of nano-additives for sustainable environmental management–a critical review. bioresource technology, 387, 129660. doi: https://doi.org/10.1016/j.biortech.2023.129660 wang, h., khan, m. a. s., anwar, f., shahzad, f., adu, d., & murad, m. (2021). green innovation practices and its impacts on environmental and organizational performance. frontiers in psychology, 11, 553625. doi: https://doi.org/10.3389/fpsyg.2020.553625 zwirtes, a., & alves, t. (2014). the impacts of technological innovation on accounting firms in rio grande do sul: factor analysis. revista de educação e pesquisa em contabilidade, brasília, 8(1), 39-53. doi: https://doi.org/10.17524/repec.v8i1.936 https://doi.org/10.22111/ijbds.2021.6581 https://www.proquest.com/openview/b21c84cc107ccd374a2c2dd5a0e41ee3 https://www.proquest.com/openview/b21c84cc107ccd374a2c2dd5a0e41ee3 https://doi.org/10.1007/s11051-006-9092-7 https://www.igi-global.com/book/using-organizational-culture-resolve-business/302602 https://www.igi-global.com/book/using-organizational-culture-resolve-business/302602 https://www.igi-global.com/book/using-organizational-culture-resolve-business/302602 https://doi.org/10.1108/k-09-2022-1353 https://doi.org/10.3389/fbuil.2022.823998 https://doi.org/10.1016/j.biortech.2023.129660 https://doi.org/10.3389/fpsyg.2020.553625 https://doi.org/10.17524/repec.v8i1.936 agbioforum, 25(2), 2023 | 203 appendix 1 nano-technology innovation: 1. to what extent does your organization invest in research and development of nanotechnology applications? 2. how frequently does your organization introduce new nanotechnology-based products or services? 3. how innovative is your organization in applying nanotechnology to improve processes or solve problems? government pressure: 1. how strongly does government regulation influence decision-making within your organization? 2. to what extent does government policy incentivize or discourage the adoption of environmentally friendly technologies in your organization? 3. how closely does your organization monitor government regulations related to environmental sustainability? 4. how much pressure does the government exert on your organization to comply with environmental standards and regulations? organizational culture: competence in visionary leadership: 1. to what extent does leadership in your organization inspire and motivate employees to embrace innovative ideas and technologies? 2. how well does leadership in your organization communicate a clear vision for sustainability and environmental responsibility? 3. how effectively does leadership in your organization encourage risk-taking and experimentation to drive innovation? competence in systemic improvement: 1. how well does your organization encourage collaboration and teamwork to implement sustainability initiatives? 2. to what extent does your organization promote continuous improvement and learning in environmental practices? 3. how effectively does your organization integrate sustainability goals into strategic planning and decision-making processes? 4. how supportive is your organization of employee initiatives aimed at improving environmental performance? 5. how well does your organization recognize and reward contributions to environmental sustainability efforts? environmental performance: 1. how effectively does your organization manage and reduce its carbon footprint? 2. to what extent does your organization minimize waste and pollution in its operations? 3. how successful is your organization in conserving natural resources and promoting energy efficiency? 4. how well does your organization comply with environmental regulations and standards? 5. how proactive is your organization in addressing environmental challenges and implementing sustainable practices? 6. how transparent is your organization in reporting its environmental performance to stakeholders? agbioforum, 25(2): 137-149. ©2023 agbioforum ardebili & rickertsen — food values, personality traits, and attitudes towards genetically modified food in norway and the united states food values, personality traits, and attitudes towards genetically modified food in norway and the united states aida t. ardebili* associate professor, norwegian university of life sciences, school of economics and business, p.o. box 5003, n-1432 ås, norway email: aida.ardebili@nmbu.no orcid id: https://orcid.org/0000-0001-5786-3518 kyrre rickertsen professor, norwegian university of life sciences, school of economics and business, p.o. box 5003, n-1432 ås, norway email: kyrre.rickertsen@nmbu.no orcid id: https://orcid.org/0000-0002-5068-0847 we explored the effects of personality traits and subjective beliefs on willingness to pay (wtp) to avoid genetically modified (gm) foods using a random effects interval regression model. the personality traits were measured by the big five model, and the subjective beliefs were measured by a set of food values. we used data from an online survey conducted in norway and the us. the effects of sociodemographic factors and personality traits are country specific. most of the food values are significant in both countries. gm aversion is associated with believing that gm products are unnatural with possible negative impacts on the environment and animal welfare and unfair to farmers, processors, and retailers. public information could focus on the potential benefits of adopting this technology for reduced pesticide use in agriculture. adopting more liberal policies towards gm foods might also reduce the safety concerns among european consumers. key words: big five, beliefs, consumer preferences, food values, genetic modification, personality traits, salmon. 1. introduction the concerns about genetically modified (gm) foods are frequently associated with risk perceptions that are not based on scientific results. nevertheless, there is no agreement on why such concerns have persisted for so long towards a technology that is as safe as conventional breeding technologies (world health organization, 2014). lusk et al. (2014a) pointed out that the literature has focused more on measuring individuals’ preferences or valuations of gm foods than on measuring beliefs, while findings suggest that a priori beliefs are among the most important determinants of attitudes towards gm foods (dixon, 2016; lusk et al., 2004). earlier studies attributed the negative attitudes towards gm foods to perceived unnaturalness and perceived negative health or environmental consequences from consumption of these products (costa-font et al., 2008). however, consumers’ perceptions may have changed given recent advancements in gm technologies. traditional genetic modification altered the genetic makeup of an animal or a plant by transferring a piece of dna from one organism to another. the crispr/cas genome editing technique was introduced in 2012 (jinek et al., 2012). this technology has the potential to revolutionize plant and animal breeding and develop new products without inserting foreign dna.1 this ability coupled with a very high degree of precision may have reduced consumer opposition against gm products (bartkowski et al., 2018). established theories in consumer research such as the expectancy-value theory (fishbein & ajzen, 1977), the means-end chain model (gutman, 1982), and the theory of planned behavior (ajzen, 1985), emphasize the importance of beliefs in consumers’ decision-making process. according to these theories, values and beliefs form the consumers’ attitudes and perceptions about different product attributes. food-related beliefs may be reflected by 1 it should be noted that no distinction between conventional gm and the crispr/cas technology was made in the survey used in this paper. however, general media attention may still have influenced the respondents. food values. food values refer to a set of food specific meta preferences and were developed by lusk and briggeman (2009). they suggested 11 food values that were likely to be relatively stable over time and could explain consumers’ food choices across a wide range of food products. these values are naturalness, taste, price, safety, convenience, nutrition, tradition, origin, fairness, appearance, and environmental impacts. the external validity of these food values has been demonstrated by using actual grocery store purchases (lusk, 2011b). their relative importance has been found to be quite stable over time (tonsor et al., 2018), and to represent a more permanent component of individuals’ preferences for food (lusk, 2011a; lusk & briggeman, 2009). for example, consumers’ preferences for gm foods may change as their perceptions about the safety of gm foods change, while their preferences and the relative importance assigned to the value food safety remain quite stable over time. many food-related decisions are made unconsciously. therefore, conceptual models of food-related behavior refer to individuals’ psychological characteristics as one of the influential factors in determining food choices (furst et al., 1996; köster, 2009). accounting for individuals’ characteristics such as psychological factors may improve the understanding of preference heterogeneity in general and choice patterns for foods in particular (bazzani et al., 2017). personality is defined as: “relatively enduring patterns of thoughts, feelings, and behavior that reflect the tendency to respond in certain ways under certain circumstances” (roberts, 2009). the big five personality traits (goldberg, 1981) is one of the most frequently used models to measure and classify personality traits into five broad dimensions: openness to experiences, conscientiousness, extraversion, agreeableness, neuroticism (ocean). the ocean traits have been found to be relatively stable over time and represent enduring coherence of behaviors (cobb-clark & schurer, 2012). mailto:aida.ardebili@nmbu.no https://orcid.org/0000-0001-5786-3518 mailto:kyrre.rickertsen@nmbu.no https://orcid.org/0000-0002-5068-0847 agbioforum, 25(2), 2023 | 138 ardebili & rickertsen — food values, personality traits, and attitudes towards genetically modified food in norway and the united states norway and the us differ in several aspects of their food systems including the regulation on gm foods. import, production, and sales of gm foods or food with gm ingredients are banned in norway while these products are widely available in the us. moreover, bazzani et al. (2018) found some differences in the importance ranking of food values between these two countries. finally, there are some important socioeconomic differences between the countries related to income distribution, provisions of public financed education and health care. for all these reasons, it is interesting to compare the perceptions about gm foods in norway and the us, while taking socioeconomic and psychological factors into account. attitudes towards a food product may be reflected by the willingness to pay (wtp) for the product. as discussed above, a priori beliefs are among the important determinants of the attitudes towards gm foods, and they may be reflected by associations between food values and attitudes towards gm foods. however, to our knowledge, the effects of food values on wtp for gm foods have not been investigated. moreover, only two studies have investigated the effects of the ocean traits on wtp for gm foods (ardebili & rickertsen, 2020; lin et al., 2019). the data were collected in an online survey in norway and the us in 2015, which included three gm foods: gm soybean oil (plant-based food), gm-fed salmon (an animal fed with gm feed), and gm salmon (an animal). the same data set was used by rickersten et al. (2017) and bazzani et al. (2018). however, neither of these studies investigated the effects of personality traits; rickersten et al. (2017) did not investigate the effects of food values, and bazzani et al. (2018) did not investigate wtp. 2. literature review we will briefly present some recent results related to: (i) effects of food values on consumer preferences for food, (ii) effects of the ocean traits on preferences for food and specifically gm foods, (iii) effects of knowledge, beliefs, and labeling on preferences for gm foods, and (iv) wtp values for gm foods. 2.1. food values food values have been associated with preferences and demand for food. lusk and briggeman (2009) found that the price was negatively associated with higher wtp for organic bread, while nutrition, naturalness, environmental impact, and origin were positively associated. lusk (2011b) used scanner data and discrete choice demand model and found that environmental impact and tradition were associated with higher demand for organic eggs and milk, while price and convenience were associated with lower demand. tonsor et al. (2018) used us survey data over a four-year period and regression analysis and found that animal welfare, nutrition, environment, and naturalness were negatively associated with the demand for beef steak and ground beef. taste, appearance, and novelty were positively associated while safety was unimportant for both products. in an italian experimental auction, pappalardo and lusk (2016) used ordinary least squares and found that the wtp for functional foods were positively associated with the food value health. however, after tasting the foods, safety and taste were associated with lower wtp. bazzani et al. (2018) used a multinomial logit and a mixed logit model to compare the relative importance of food values in the us and norway with the data set used in this study. they found that food safety was most important in both countries, which is in line with the results reported in lusk and briggeman (2009) for the us, who used the same data analysis technique. they also found that the price was ranked quite differently in the two countries. price was ranked as the second most important value in the us and only the sixth most important in norway. 2.2. ocean traits many recent studies have found that the ocean traits are associated with food choices and food-related attitudes or preferences. gustavsen and hegnes (2020a, 2020b) used a binary logistic regression model and found that openness to experience was positively related to the attitudes towards organic food and local food; ufer et al. (2019) used a tobit model and found that extraversion and conscientiousness increased preferences for cooperativegrown coffee; gustavsen and rickertsen (2019) used a beta regression model and found that agreeableness was negatively, and extraversion and openness to experience were positively associated with consumption frequency of wine; and nezlek and forestell (2019) used multiple regression analysis and found that openness to experience was associated with less food neophobia. several studies have found that neuroticism is negatively and openness to experience, conscientiousness, and agreeableness are positively related to healthier dietary patterns, better selfrated health, and lower bmi (pfeiler & egloff, 2020; weston et al., 2020). a recent review of associations between the ocean traits and food choices and consumption is provided by machado-oliveira et al. (2020). the ocean traits have been included in some studies about preferences for labeling of gm foods and wtp and risk perceptions about such foods. peschel et al. (2019) used a latent class model and found that openness to experience and neuroticism were associated with preferences for production method labeling such as gmfree and pesticide free labeling of dates in the us. delong and grebitus (2018) used a bivariate ordered probit model and found that conscientious individuals were more likely to desire labelling of gm sugar and soft drinks with gm sugar contents in the us. lin et al. (2019) estimated a mixed logit model and found that openness to experience increased wtp for gm pork in italy, china, and the us, while conscientiousness decreased this wtp in italy and the us, but not in china. they also found that extraversion was positively, and agreeableness was negatively associated with wtp for gm pork in the us. ardebili and rickertsen (2020) used random effect interval regression analysis and found that higher score of conscientiousness decreased the wtp to avoid gm-fed and gm salmon in norway, while higher score of agreeableness increased the premiums to avoid these products. whittingham et al. agbioforum, 25(2), 2023 | 139 ardebili & rickertsen — food values, personality traits, and attitudes towards genetically modified food in norway and the united states (2020) used communication data from twitter accounts and lexical analysis to obtain information regarding users’ perception about the safety of gm foods and to predict the score of their personality traits and values. logistic regression analysis suggested that higher score on extraversion was positively associated with the perception that gm foods is unsafe, while higher scores of openness to experience, agreeableness, and neuroticism were negatively associated with this perception. moreover, they found that self-transcendence values such as universalism and benevolence were associated with the perception that gm foods is unsafe. 2.3. knowledge, beliefs, and labeling consumers’ preferences and attitudes towards gm foods have been investigated from different perspectives over the last two decades, and there are several reviews (costa-font et al., 2008; frewer et al., 2013; scott et al., 2018; wunderlich & gatto, 2015). house et al. (2004) differentiated between consumers’ objective and subjective knowledge. their results indicate that subjective knowledge is a significant determinant of consumers’ willingness to accept gm foods, whereas objective knowledge is unrelated to acceptance of these products. several recent studies have focused on the effects of knowledge or beliefs on gm aversion and found that subjective knowledge and beliefs are important for attitudes towards gm products. nunez et al. (2016) used a survey experiment and found that science and genetic literacy may influence perceptions about gm foods and increase the desirability of these products. fernbach et al. (2019) used ordinary least squares on data from the us, france, and germany, and showed that the extreme opponents of gm foods were those who knew the least about genetics but perceived themselves to be knowledgeable. mcfadden and lusk (2016) also found that us consumers overestimated their own level of knowledge about gm foods. dixon (2016) used ordinary least squares and found that information had little effect on individuals with negative beliefs about gm foods. ortega et al. (2020) used a mixed logit model and found that consumers were most responsive to information treatments when they were most uncertain about their preferences for gm pork. ardebili and rickertsen (2020) used random effect interval regression analysis and found that norwegians who lacked information about domestic restrictions on the use of genetic engineering had more positive attitudes towards gm foods. some studies have also suggested that labeling will create negative perceptions about gm products (lefebvre et al., 2019). however, kolodinsky and lusk (2018) used difference-indifference estimates of gm aversion and found that opposition to gm foods dropped by 19% after mandatory labeling was implemented in the state of vermont. 2.4. wtp for gm foods numerous studies have estimated the wtp premiums to avoid gm foods or valuation of such products, and reviews are provided by colson and rousu (2013), dannenberg 2 more information can be found in https://www.ipsos.com/nb-no/samfunnsundersokelsen-norsk-monitor (2009), and lusk et al. (2005). a meta-analysis by hess et al. (2016) included 214 studies. quite interestingly they found that consumers’ evaluations of gm foods did not depend on the type of food, and eu consumers were not more gm averse than consumers in other countries when negative and positive connotations of the questions were controlled for. not surprisingly, more positively framed questions were associated with more positive evaluations of gm foods. the effect of samples is demonstrated by two studies using norwegian samples. rickersten et al. (2017) used random effect interval regression analysis and found average premiums of 7-9% to avoid gm soybean oil, gmfed salmon, and gm salmon in norway, while ardebili and rickertsen (2020) found twice as high premiums for the same products using a different norwegian sample with data collected close in time and using the same valuation questions. an example on large country specific effects is lin et al. (2019) who used a mixed logit model with utilities specified in wtp-space and found that us, chinese, and italian respondents asked for discounts of around 40%, 80%, and more than 280% per pound of gm pork, respectively. whereas vermeulen et al. (2020) used logistic regressions and found that south african pro-gm consumers were willing to pay a premium of 8.7% for sugar derived from genetically modified sugarcane. as mentioned above, this is the first study that investigates the associations between food values and attitudes towards genetically modified (gm) foods. given the importance of consumers’ a priori beliefs in determining their attitudes towards gm foods, it is of particular interest to investigate such associations in models where personality traits and sociodemographic characteristics also are accounted for. 3. materials and methods 3.1. the survey an online survey was conducted between october and november 2015 in norway and the us. data were collected by a market research agency (ipsos), who randomly recruited respondents across regions in both countries.2 more than one thousand respondents participated in each country (1,037 in norway and 1,026 in the us). the respondents could quit the survey whenever they wanted and were assured that their information was anonymous. the survey included a choice experiment on food values and questions about sociodemographic factors, attitudes, and personality traits. as discussed in more detail in bazzani et al. (2018), the samples were relatively representative of the national populations in terms of sociodemographic characteristics with two exceptions. the average age of the norwegian sample was higher than the population, and the samples in both countries were more educated than their respective country populations. 3.2. measurements of variables and descriptive statistics the wtp values to avoid gm products were based on the respondents’ answers to three questions: (1) “imagine that https://www.ipsos.com/nb-no/samfunnsundersokelsen-norsk-monitor agbioforum, 25(2), 2023 | 140 ardebili & rickertsen — food values, personality traits, and attitudes towards genetically modified food in norway and the united states you are purchasing soybean oil. the store has two types of oil. the first is made from non-genetically modified soy, and the other is made from genetically modified soy. how much more are you willing to pay for the non-genetically modified oil as compared with the genetically modified oil?”. (2) “imagine that you are purchasing salmon. the store has two types of salmon. non-genetically modified soy has been a part of the feed of the first type of salmon and genetically modified soy has been a part of the feed of the other type. how much more are you willing to pay for the salmon that has been fed non-genetically modified soy?”. (3) “imagine a genetically modified salmon has been developed. the store has conventional farmed salmon and the genetically modified salmon. how much more are you willing to pay for conventional salmon?”. the respondents could choose one of the following alternatives “nothing, will not pay more”, “a maximum of 20% more”, “21-50% more”, “more than 50% more”, and “do not know”. table 1 presents the percentage distributions of the wtp values to avoid the three gm alternatives in norway and the us. the last row of the table reports the p-values of a kruskall-wallis test for whether the samples originate from the same distribution. we can reject identical distributions of wtp values for gm salmon, but not for gm soybean oil and gm-fed salmon. following rickersten et al. (2017), we removed all respondents who chose the ‘do not know’ alternative for at least one good, and 291 norwegian observations and 202 us observations were removed. the subsequent descriptive statistics and analyses are therefore based on 746 norwegian and 824 us observations. table 1. willingness to pay to avoid gm alternatives, percentage distributions. norway (n = 1,037) united states (n = 1,026) gm soybean oil gm-fed salmon gm salmon gm soybean oil gm-fed salmon gm salmon nothing 43.8 44.6 38.6 48.4 47.1 51.1 1-20% more 28.8 31.2 36.3 28.9 28.2 26.0 2150% more 4.4 5.1 6.7 7.9 10.3 7.5 > 50% more 3.1 2.2 3.8 2.8 3.0 5.7 “do not know” 19.9 16.8 14.8 11.9 11.4 9.7 p-value a 0.75 0.18 0.00 source: the table is based on information in table 3 in rickersten et al. (2017). note: a the p-value of the kruskal-wallis test on whether the samples originate from the same distribution. table 2 provides the mean values and standard deviations of the sociodemographic variables. the income was recorded in nine intervals and measured in us$ in the us and in nok in norway. each respondent’s income was set to the midpoint of the income group, except for the highest and lowest income groups where the censoring point was set as the income. the log of income was used in the subsequent analyses. dummy variables represent gender, education, marital status, the presence of children, whether the respondent lived or had lived on a farm, and whether the respondent lived in a city with more than 100,000 inhabitants. the last column of the table reports the pvalues of unpaired t-tests for identical mean values of the variables in the two countries. except for gender, the observed differences are significant at the 5% level. the norwegian respondents were older, wealthier, and more educated. a larger proportion was also married or had cohabitants and lived or had lived on a farm, and a lower proportion was residing in cities and had children living in the household. table 2. mean and standard deviations (sd) of the sociodemographic variables. norway united states variable description mean sd mean sd p-value age age of respondent in years 53.93 15.03 40.45 12.70 0.00 b income log of household’s income a 6.16 0.81 3.89 0.72 0.00 b male = 1 if male 0.52 0.50 0.52 0.50 0.97 c education = 1 if completed bachelor or more 0.64 0.48 0.55 0.50 0.00 c married = 1 if married or cohabitant 0.71 0.46 0.57 0.49 0.00 c children = 1 if children aged 18 years or less live in the household 0.30 0.46 0.44 0.50 0.00 c farm = 1 if lives or has lived on a farm 0.32 0.47 0.19 0.39 0.00 c city = 1 if lives in city > 100,000 inhabitants 0.29 0.45 0.43 0.50 0.00 c source: the table is based on the information in table 4 in rickersten et al. (2017) for 746 respondents in norway and 824 respondents in the us. the values for our farm variable are different due to some typos in rickersten et al. (2017). notes: a the income variable was divided into nine groups, and the household’s income was set to the midpoint of the income group. for the highest and lowest income groups, the censoring point was used as income. income was measured in us$ in the us and in nok in norway. b the p-value of an unpaired t-test for identical mean values in norway and the us. c the p-value of a pearson's chi-squared test of independence of the binary variable in the two samples. the personality traits were measured by a short version of the big five model proposed by engvik and clausen (2011), which is based on 20 items (bfi-20). table 3 presents the personality traits, their definition according to american psychology association’s dictionary (american psychological association, n.d.), and the items associated with each trait. the items were measured by self-reported scores on a scale from 1 (the item does not describe the respondent at all) to 7 (the item describes the respondent very well). table 3 also reports the mean values and standard deviations of the 20 items for each country. the scores of the items with negative wordings are reversed, and higher mean agbioforum, 25(2), 2023 | 141 ardebili & rickertsen — food values, personality traits, and attitudes towards genetically modified food in norway and the united states values indicate higher level of the associated trait. an asterisk indicates a significant difference at the 5% level between the mean values of the items across the countries. except for five items, the mean scores are significantly different. table 3. the ocean traits with mean and standard deviations of the associated itemsa. norway united states trait and items apa definition of traitb meanc sd meanc sd openness to experience the tendency to be open to new aesthetic, cultural, or intellectual experiences original 4.14* 1.35 4.93* 1.42 imaginative 4.53* 1.51 5.12* 1.46 ideas 4.28* 1.44 4.99* 1.38 (non) unaestheticd 4.45* 1.87 4.18* 1.89 conscientiousness the tendency to be organized, responsible, and hardworking thorough 5.63 0.99 5.66 1.28 (non) carelessd 4.80 1.41 4.66 1.67 (non) messyd 5.51* 1.53 4.85* 1.76 discipline 4.89* 1.23 5.17* 1.41 extraversion an orientation of one’s interests and energies toward the outer world of people and things rather than the inner world of subjective experience talkative 4.06* 1.48 4.29* 1.66 (non) quietd 4.16* 1.63 3.60* 1.68 (non) shyd 5.06* 1.47 3.85* 1.72 social 4.66 1.45 4.67 1.62 agreeableness the tendency to act in a cooperative, unselfish manner helpful 5.22* 1.19 5.43* 1.37 (non) coldd 5.10* 1.40 4.45* 1.67 friendly 5.65 1.06 5.63 1.28 (non) ruded 5.05 1.48 4.91 1.67 neuroticism a chronic level of emotional instability and proneness to psychological distress depressed 2.38* 1.44 3.05* 1.76 (non) relaxedc 3.06* 1.42 3.39* 1.63 worried 3.56* 1.69 4.20* 1.89 nervous 2.90* 1.54 3.77* 1.80 notes: a based on 746 respondents in norway and 824 respondents in the us. b definitions according to apa’s dictionary of psychology (n.d.).c an asterisk indicates significance at the 5% significance level for an unpaired t-test of identical mean values in norway and the us d the score of the item is reversed. for each individual and each trait, the score was constructed as the mean score of the four items associated with the trait. in columns 2 4 of table 4, the mean scores, standard deviations, and cronbach’s alpha values (α) for each trait and each country are reported. in both countries, respondents identify themselves as high on conscientiousness and agreeableness and low on neuroticism. cronbach’s alpha values above 0.6 suggest construct reliability (hair et al., 2014), and except for conscientiousness in norway the values indicate sufficient construct reliability. the correlation matrix of the constructed ocean traits is also shown in table 4, and an asterisk indicates a significant correlation at the 5% level. several correlations are significant, but none is above 0.5. for ease of interpretation, the scores were standardized to have zero mean and a unit standard deviation for the subsequent analyses. we used the 12 food values suggested by bazzani et al. (2018). as compared with lusk and briggeman (2009) the value ‘tradition’ was excluded and the values ‘novelty’ and ‘animal welfare’ were added. table 5 provides the food values and their definitions. table 4. mean values, standard deviations, and correlations of the ocean traits. correlation matrixa trait mean sd 𝛼b o c e a n norway (n = 746) openness to experience 4.35 1.12 0.72 1.00 conscientiousness 5.21 0.86 0.58 0.00 1.00 extraversion 4.49 1.21 0.82 0.19* 0.12* 1.00 agreeableness 5.26 0.87 0.62 0.06 0.39* 0.32* 1.00 neuroticism 2.98 1.17 0.77 -0.08* -0.23* -0.29* -0.21* 1.00 united states (n = 824) openness to experience 4.80 1.02 0.61 1.00 conscientiousness 5.08 1.05 0.61 0.26* 1.00 extraversion 4.10 1.21 0.70 0.23* 0.21* 1.00 agreeableness 5.11 1.05 0.66 0.26* 0.50* 0.18* 1.00 neuroticism 3.60 1.35 0.75 -0.17* -0.45* -0.33* -0.33* 1.00 notes: a an asterisk indicates significance at the 5% significance level. b cronbach’s alpha values represent scale reliability coefficients from the standardized items. agbioforum, 25(2), 2023 | 142 ardebili & rickertsen — food values, personality traits, and attitudes towards genetically modified food in norway and the united states table 5. food values with descriptions. food value description naturalness made without modern food technologies like genetic engineering, hormone treatment and food irradiation safety eating the food will not make you sick environmental impact effects of food production on the environment origin whether the food is produced locally, in the us/norway or abroad fairness farmers, processors, and retailers get a fair share of the price nutrition amount and type of fat, protein, etc. taste the flavor of the food in your mouth appearance the food looks appealing and appetizing convenience how easy and fast the food is to cook and eat price the price you pay for the food animal welfare well-being of farm animals novelty the food is something new that you have not tried before source: the table is based on the information in table 2 in bazzani et al. (2018). 3.3. best-worst scaling the best-worst scaling (bws) method was developed by finn and louviere (1992). there are several ways to implement this method, and we used the case 1 (also referred to as object case) approach that is commonly used in studies of food values (bazzani et al., 2018; lister et al., 2017; lusk & briggeman, 2009; pappalardo & lusk, 2016). in this approach, a complete rank ordering of the list of items is elicited by presenting the respondents with repeated choice sets, each with a subset of items. the respondent is asked to select the best (most important) and the worst (least important) items in the set. a nearly balanced incomplete block design (nbibd) was used. twelve choice sets were designed, each set included four food values, and each value was repeated four times across the sets and paired with other values 1.09 number of the times. all respondents were given all the choice sets and could only choose one pair of the most important (best) and least important (worst) food value in each set.3 following pappalardo and lusk (2016), we used the counting method to calculate the respondent-specific scores for the importance of each food value. for each respondent, we counted the number of the times each food value was chosen as most important and the number of the times each food value was chosen as least important across the 12 choice sets. we then subtracted the number of times it was chosen as least important from the number of times it was chosen as most important and obtained the bestworst score. these scores are referred to as the importance scores (or best-worst scores) (lusk & briggeman, 2009; pappalardo & lusk, 2016). each food value appeared four times across the 12 choice sets and the range of the importance scores are from -4 to 4. they sum to zero across all food values, i.e., the importance scores are effect coded and zero implies the mean level of importance. table 6 reports the mean values and standard deviations of the food values. for each country, the best (worst) column reports the mean best (worst) scores, i.e., the number of the times the food value was chosen as most (least) important across the 12 choice sets. everybody chose one food value as most important and one food value as least important in each choice set, and the sum of the mean values in the best 3 a more detailed discussion of the bws method, the nbibd design used in this choice experiment, and other aspects of the experiment are provided in bazzani et al. (2018). column is 12 in each country and this is also the case for the worst column. the best-worst column reports the average of the best minus the worst scores, and the column sums to zero. the last column reports the p-values of an unpaired t-test for identical mean values of the best minus worst score in the two countries for each food value. except for safety and taste, they are significantly different at the 5% level. safety is the most important and novelty is least important food value in both countries. table 6. mean values and standard deviations of the food values. norway (n = 746) united states (n = 824) best worst bestworst best worst bestworst pvalue b safety 2.42 0.09 2.34 2.40 0.22 2.19 0.07 (1.30) (0.36) (1.46) (1.42) (0.58) (1.77) naturalness 1.48 0.43 1.05 1.16 0.83 0.33 0.00 (1.37) (0.84) (1.90) (1.25) (1.04) (2.01) environmental impact 0.93 0.70 0.23 0.68 0.88 -0.20 0.00 (1.07) (0.95) (1.70) (0.91) (1.06) (1.66) fairness 1.00 0.64 0.36 0.65 0.98 -0.32 0.00 (1.12) (0.94) (1.76) (0.86) (1.01) (1.54) nutrition 1.19 0.58 0.61 1.37 0.48 0.89 0.00 (1.26) (0.88) (1.85) (1.18) (0.78) (1.67) taste 1.43 0.27 1.16 1.65 0.37 1.28 0.16 (1.38) (0.52) (1.64) (1.33) (0.70) (1.74) price 0.83 1.36 -0.53 1.34 0.89 0.45 0.00 (1.22) (1.20) (2.15) (1.28) (1.09) (2.09) appearance 0.48 1.42 -0.95 0.63 1.17 -0.54 0.00 (0.75) (1.13) (1.65) (0.77) (1.14) (1.65) animal welfare 1.02 0.34 0.68 0.79 0.77 0.02 0.00 (1.34) (0.76) (1.73) (1.13) (1.12) (1.86) origin 0.81 1.50 -0.69 0.64 1.56 -0.92 0.02 (1.11) (1.25) (2.09) (0.86) (1.15) (1.77) convenience 0.34 1.83 -1.49 0.50 1.39 -0.89 0.00 (0.75) (1.21) (1.71) (0.76) (1.17) (1.68) novelty 0.08 2.86 -2.78 0.19 2.47 -2.28 0.00 (0.33) (1.20) (1.36) (0.51) (1.33) (1.62) notes: a mean values of the scores obtained from counting method with standard deviations in the parentheses. b the p-value of an unpaired t-test for identical mean values in norway and the us. 3.4. subjective expected utility and wtp in expected utility theory, the probabilities are usually assumed to be objective. however, in food choice situations the probabilities are typically unknown and agbioforum, 25(2), 2023 | 143 ardebili & rickertsen — food values, personality traits, and attitudes towards genetically modified food in norway and the united states likely to be subjective and respondent specific. following several studies (lusk, 2011b; lusk et al., 2014b; pappalardo & lusk, 2016), we interpret these subjective probabilities as subjective beliefs. look at one respondent who is consuming one product that exists in different varieties with 𝑘 = 1, … , 𝐾 attributes. let 𝑃𝑖𝑗 𝑘 be respondent i’s subjective belief that variety j provides attribute k. we follow lusk (2011b) and pappalardo and lusk (2016), and interpret the attributes as food values, fv, and the utility obtained from each food value of the product is 𝑈𝑖(𝐹𝑉𝑘). the subjective expected utility respondent i gets from variety j of the product is 𝑆𝐸𝑈𝑖𝑗 , or:4 𝑆𝐸𝑈𝑖𝑗 = ∑ 𝑃𝑖𝑗 𝑘 𝑈𝑖(𝐹𝑉𝑘).𝐾 𝑘=1 (1) variety 𝐴 of the product will be chosen over variety b when 𝑆𝐸𝑈𝑖𝐴 > 𝑆𝐸𝑈𝑖𝐵, or in terms of equation (1) when ∑ (𝑃𝑖𝐴 𝑘 − 𝑃𝑖𝐵 𝑘 )𝑈𝑖(𝐹𝑉𝑘)𝐾 𝑘=1 > 0. we extend the model used in lusk (2011b) and pappalardo and lusk (2016) and let the seu be associated with respondent-specific characteristics such as sociodemographic status and personality traits. we consider two varieties of the product, one that is a gm variety (gm) and one that is a conventional non-gm variety (c). the seu of respondent 𝑖 for the gm variety is: 𝑆𝐸𝑈𝑖𝐺𝑀 = 𝛾𝐺𝑀 + ∑ 𝑃𝑖𝐺𝑀 𝑘 𝑈𝑖(𝐹𝑉𝑘)𝐾 𝑘=1 + ∑ 𝛽𝑖𝐺𝑀 𝑙 𝑍𝑖𝑙 𝐿 𝑙=1 − 𝛼𝑝𝑟𝑖𝑐𝑒𝐺𝑀 (2) where 𝛾𝐺𝑀 is a constant term, 𝑍𝑖𝑙 is the level of respondentspecific characteristic l, 𝛽𝑖𝐺𝑀 𝑙 is the associated parameter, 𝛼 is the marginal utility of income, and 𝑝𝑟𝑖𝑐𝑒𝐺𝑀 is the price of the gm variety. the seu for the conventional variety is: 𝑆𝐸𝑈𝑖𝐶 = 𝛾𝐶 + ∑ 𝑃𝑖𝐶 𝑘 𝑈𝑖(𝐹𝑉𝑘)𝐾 𝑘=1 + ∑ 𝛽𝑖𝐶 𝑙 𝑍𝑖𝑙 𝐿 𝑙=1 − 𝛼𝑝𝑟𝑖𝑐𝑒𝐶 . (3) as discussed in section 2, many studies have confirmed that price discounts are needed to make individuals willing to accept gm products (ardebili & rickertsen, 2020; lin et al., 2019; lusk et al., 2005). consequently, we assume that there is a wtp premium for the conventional product as compared with its gm counterpart. this premium is calculated by solving for the price difference that equates the seus in equations (2) and (3), or: 𝑊𝑇𝑃 = (𝑝𝑟𝑖𝑐𝑒𝐶 − 𝑝𝑟𝑖𝑐𝑒𝐺𝑀) = (𝛾𝐶−𝛾𝐺𝑀)+ ∑ (𝑃𝑖𝐶 𝑘 −𝑃𝑖𝐺𝑀 𝑘 )𝐾 𝑘=1 𝑈𝑖(𝐹𝑉𝑘)+ ∑ (𝛽𝑖𝐶 𝑙 − 𝛽𝑖𝐺𝑀 𝑙 )𝑍𝑖𝑙 𝐿 𝑙=1 𝛼 . (4) 3.5. econometric model each respondent stated the wtp to avoid three gm products, which gives a panel structure to data. the wtp values were recorded in intervals. we used a random effects interval regression model to take the intervalcoding of the wtp values and the panel structure of the data into account. following rickersten et al. (2017), we specified each respondent’s latent wtp* to avoid the gm varieties as: 𝑊𝑇𝑃𝑖,𝐺𝑀 ∗ = 𝐺1𝑋′𝑖 𝜆1 + 𝐺2𝑋′𝑖 𝜆2 + 𝐺3𝑋′𝑖 𝜆3 + 𝑣𝑖 + 𝑒𝑖,𝐺𝑀 (5) 4 equation (1) is a subjective expected utility theory model (savage, 1954). subjective expected utility theory is an extension of the expected utility theory of von neumann and morgenstern (1944). 5 we choose to exclude the price from the model because we expected that price sensitive respondents would have higher acceptance of gm foods, and our results seem to correspond well with this hypothesis. where subscript gm denotes the gm varieties of three products (gm soybean oil, gm-fed salmon, and gm salmon); 𝐺1 = 1 for the first product and 0 otherwise, 𝐺2 = 1 for the second product and 0 otherwise, and 𝐺3 = 1 for the third product and 0 otherwise; 𝑋′𝑖 is a vector of the explanatory variables, and 𝜆1, 𝜆2, and 𝜆3 are the parameter vectors. the respondent-specific random variation 𝑣𝑖 is assumed to be constant across products and iid n(0, 𝜎𝑣 2). the observation-specific random variation 𝑒𝑖,𝐺𝑀 is assumed to be independent of 𝑣𝑖 and n(0, 𝜎𝑒 2). the proportion of the total variance contributed by the panellevel variance component is 𝜌 = 𝜎𝑣 2 𝜎𝑣 2+𝜎𝑒 2. when this proportion is high, the respondent-specific variation is high, the panel structure is important, and a pooled estimator will give incorrect standard errors. we used the -xtintregprocedure in stata/mp 15 to estimate the model (statacorp, 2017). 4. results model 1 included only the sociodemographic variables, model 2 added the personality traits, and model 3 included all the variables. in model 3, the price was excluded to avoid perfect multicollinearity among the food values as discussed above.5 first, we estimated country specific unrestricted versions of the models with product-specific effects and alternative specific constants (ascs). second, we excluded the product-specific effects, and tested these restricted models by likelihood-ratio tests. the restricted versions were never rejected (p-values > 0.2). finally, we tested the restricted versions of model 1 and model 2 against the restricted version of model 3. model 1 (p < 0.00) and model 2 (p < 0.00) were rejected in both countries, and we discuss the results of the restricted version of model 3. 4.1. norway table 7 shows the estimated coefficients and associated standard errors for the norwegian models. an asterisk indicates significance at the 5% level. the proportion of the total variance explained by the panel-level variance component is high in all models (𝜌 > 0.81), which indicates the importance of panel structure of the data. the ascs can be interpreted as the average wtp premiums for a hypothetical reference respondent, i.e., a single zero-year-old female with no income, no university degree, no children, who never has lived on a farm, does not live in a city, scores zero on all personality traits, and find all the food values to be of average importance. none of the ascs are significantly different from zero. some sociodemographic variables, none of the ocean traits, and many food values are significantly associated with the wtp premiums to avoid gm foods. the coefficients can be interpreted as the change in the wtp premium for a non-gm food as a result of a one unit increase in the associated variable. income, education and agbioforum, 25(2), 2023 | 144 ardebili & rickertsen — food values, personality traits, and attitudes towards genetically modified food in norway and the united states having lived on farm are positively associated with higher wtp to avoid the gm alternatives. education has the greatest impact, and respondents who had completed a bachelor’s degree or more have on average 2.5 percentage points higher wtp to avoid gm foods as compared with other respondents. all the changes in importance of a food value are relative to the importance of price, i.e., the excluded food value. the coefficients reflect the difference in subjective beliefs about the conventional product versus the gm alternative with respect to each food value (lusk, 2011a; pappalardo & lusk, 2016), and all the significant food values illustrate the importance of subjective beliefs. they imply that respondents perceived non-gm foods to be more safe, more natural, with less negative impact on the environment, and have a better area of origin than the gm alternatives. they also perceived the non-gm foods to be fairer, more appealing, better for the welfare of animals, and more convenient than the gm alternatives. a one unit increase in the relative importance scores of each of these food values increased the wtp premium for the conventional products between 1.1 and 2.2 percentage points. table 7. coefficient estimates and associated standard errors, norway. model 1 model 2 model 3 variable coefficienta se coefficienta se coefficienta se age 0.03 0.03 0.04 0.03 -0.00 0.03 income 1.56* 0.61 1.57* 0.61 1.30* 0.56 male -3.09* 0.92 -3.00* 0.96 -0.27 0.92 education 2.92* 0.97 2.81* 0.97 2.52* 0.91 married -0.49 1.05 -0.31 1.06 0.48 0.98 children 0.32 1.07 0.48 1.07 0.30 1.00 farm 3.21* 1.01 3.34* 1.00 2.20* 0.94 city 0.40 1.03 0.20 1.04 0.20 0.95 openness b 0.64 0.46 0.27 0.44 conscientiousness b 0.66 0.56 0.88 0.52 extraversion b -0.35 0.51 -0.07 0.48 agreeableness b -0.12 0.58 -0.34 0.53 neuroticism b 0.77 0.55 0.79 0.51 safety 1.04* 0.34 naturalness 2.24* 0.33 environmental impact 1.81* 0.35 fairness 1.23* 0.32 nutrition 0.60 0.33 taste 0.38 0.43 appearance 1.40* 0.37 animal welfare 1.13* 0.37 origin 1.24* 0.29 convenience 1.48* 0.40 novelty 0.83 0.44 asc gm soybean oil -4.73 3.88 -4.98 3.87 -3.00 3.95 asc gm-fed salmon -4.83 3.88 -5.08 3.87 -3.11 3.95 asc gm salmon -3.20 3.88 -3.45 3.87 -1.48 3.95 n c 2,238 2,238 2,238 log likelihood -4,858 -4,855 -4,787 aic 9,743 9,748 9,632 bic 9,817 9,850 9,798 𝜌 0.84 0.84 0.81 p-value lr-test d 0.38 0.00 notes: a an asterisk implies significance at the 5% level. b standardized net traits. c balanced panel with three observations per respondent (746 respondents). d the pvalues of likelihood ratio tests for the significance of adding the personality traits to model 1 and adding the food values to model 2. 4.2. the united states table 8 presents the estimated coefficients and associated standard errors for the us models. the proportion of the total variance explained by the panel-level variance component in each model is quite high (𝜌 > 0.62). all the ascs are statistically significant. age is negatively associated with wtp to avoid gm foods, and respondents who live or have lived on a farm have 3.7 percentage points higher wtp to avoid gm foods than others. two personality traits are significant. a one standard deviation increase in the score of extraversion increases the wtp to avoid gm foods, and one standard deviation increase in the score of agreeableness decreases the wtp to avoid gm foods by around 1.0 percentage point. the effects of the food values imply that respondents perceived non-gm foods to be more natural, more nutritious, have less negative impact on the environment, be fairer and more appealing than the gm alternatives. they also perceived the non-gm foods to be better for the animal welfare, more convenient, to have a better area of origin, and somewhat surprisingly to be more novel than the gm alternatives. a one unit increase in the relative importance scores of each of these food values increased the wtp premium for the conventional products between 1.0 and 2.9 percentage points. table 8. coefficient estimates and associated standard errors, united states. model 1 model 2 model 3 variable coefficienta se coefficienta se coefficienta se age -0.25* 0.03 -0.22* 0.03 -0.12* 0.03 income 1.39* 0.70 1.28 0.69 1.12 0.64 male 1.37 0.87 1.05 0.87 0.09 0.82 education 0.22 0.94 0.15 0.92 0.13 0.85 married 0.35 0.98 0.61 0.96 -0.05 0.88 children 2.36 0.92 2.09* 0.90 1.44 0.83 farm 5.52* 1.09 4.91* 1.08 3.75* 1.00 city 2.30* 0.86 1.81* 0.84 0.76 0.77 openness b 0.65 0.44 0.13 0.41 conscientiousness b -1.01 0.52 -0.35 0.48 extraversion b 1.54* 0.45 1.11* 0.41 agreeableness b -1.73* 0.49 -1.03* 0.46 neuroticism b 0.41 0.50 0.69 0.46 safety 0.50 0.28 naturalness 1.95* 0.28 environmental impact 1.35* 0.31 fairness 1.42* 0.33 nutrition 1.05* 0.31 taste 0.72 0.38 appearance 1.75* 0.34 animal welfare 1.19* 0.31 origin 1.53* 0.29 convenience 1.93* 0.34 novelty 2.95* 0.32 asc gm soybean oil 8.71* 2.85 8.29* 2.86 14.88* 2.70 asc gm-fed salmon 9.37* 2.85 8.94* 2.86 15.53* 2.70 asc gm salmon 9.74* 2.85 9.32* 2.86 15.90* 2.70 n c 2,472 2,472 2,472 log likelihood -6,144 -6,120 -6,046 aic 12,314 12,275 12,150 bic 1,2390 1,2380 1,231 𝜌 0.69 0.67 0.62 p-value lr-test d 0.00 0.00 notes: a an asterisk implies significance at the 5% level. b standardized net traits. c balanced panel with three observations per respondent (824 respondents). d the pvalues of likelihood ratio tests for the significance of adding the personality traits to model 1 and adding the food values to model 2. 5. discusion the associations between personality traits and attitudes towards gm foods are different from some previous results. in the us, extraversion is positively, and agreeableness is negatively associated with wtp to avoid gm foods, while lin et al. (2019) found the opposite results for the valuation agbioforum, 25(2), 2023 | 145 ardebili & rickertsen — food values, personality traits, and attitudes towards genetically modified food in norway and the united states of gm pork in the us. in contrast with the findings in ardebili and rickertsen (2020), the ocean traits are not associated with wtp to avoid gm products in norway. this may be somewhat surprising since they used identical products, measurement of the attitudes, and personality traits. however, they used a different sample, did not include food values, and used confirmatory factor analysis to construct the personality traits. most of the food values are significant, which demonstrates the importance of subjective beliefs. furthermore, the effects are quite consistent across the two countries with different market structure and cultural characteristics. in both countries, respondents perceived the gm products to be cheaper than the conventional products. moreover, they believed that conventional products are more natural, better for animal welfare, have less negative environmental impacts, and are more likely to be produced locally. previous studies have also found similar consumer opinions about gm foods across culturally diverse countries, for example united kingdom and poland (popek & halagarda, 2017). the respondents also believed that application of gm technology is unfair towards farmers, processors, and retailers. perceptions about unfairness of gm technologies are in line with findings in lusk et al. (2018), who found that consumers’ concerns about the distributional effect of adopting gm technologies across the food supply chain affect attitudes towards gm foods. perceived negative environmental impacts and unnaturalness of gm foods relative to conventional products are also in line with older studies with similar results (bredahl, 1999; frewer et al., 1996). this apparent stability over time of subjective beliefs was also discussed in tonsor et al. (2018) and lusk and briggeman (2009), who argued that preferences over food values are relatively stable. such stability also corresponds with honkanen and verplanken (2004) who argued that attitudes stemming from more general values are quite stable and less likely to change when the external environment is changing. there are some differences in subjective beliefs about gm foods in the two countries. first, nutritional beliefs affect the wtp to avoid gm foods in the us, while they have no effect in norway. second, safety is insignificant in the us, i.e., respondents do not believe conventional products are safer than gm products. in norway, safety has significant effects on wtp. this difference in beliefs about the safety of gm foods is reasonable given that genetic engineering has been widely adopted in the us while gm foods are banned in norway. previous studies also suggest that restrictive government policies are associated with gmfood aversion (ardebili & rickertsen, 2020; lusk, 2011b; pakseresht et al., 2017). our results indicate that food values are more important than personality traits, which correspond well with the results in huynh and olsen (2015). they studied consumers’ attitudes towards home-meal preparations and found that personal values have stronger effects on individuals’ attitudes than personality traits. however, whittingham et al. (2020) found that the role of personal values in determining attitudes towards gm foods are mediated by individuals’ personality traits in a study among twitter users. this result suggests that both personality traits and values are important when studying food-related attitudes and behaviors. 6. conclusions, implications, and limitations we investigated the importance of food values, personality traits and sociodemographic status in determining attitudes towards gm soybean oil, gm-fed salmon, and gm salmon. as far as we know, this is the first attempt to link food values to attitudes towards gm foods. attitudes were measured using wtp to avoid gm alternatives. the data was collected using an online survey in norway and the us. we followed pappalardo and lusk (2016) and conceptualized the relationships between food values and wtp to avoid gm foods as indicators of subjective beliefs regarding conventional food products versus gm foods. the effects of sociodemographic status and personality traits on wtp premiums are country specific. income and education are significant variables in norway and age in the us, while living on a farm is significant in both countries. in the us, extraversion and agreeableness are the only significant personality traits, and no traits are significant in norway. most of the food values are significant, which demonstrates the importance of subjective beliefs. moreover, the effects of food values are quite consistent across the two countries. an increase in the importance of naturalness, environmental impact, fairness, appearance, animal welfare, origin, and convenience relative to price, increase the aversion towards gm foods. in norway, respondents perceive gm products to be less safe than conventional products, while there is no such perception in the us. our results suggest that relevant information and more liberal policies towards gm foods may increase gm acceptance in europe. our findings have some implications. first, a large part of the resistance against gm foods seems to be based on beliefs that they are less natural, less fair to stakeholders in the supply chain, and more harmful to the environment and the welfare of animals. given such beliefs credible information is important, even though the information provision does not seem to be very successful so far (dixon, 2016; lusk et al., 2004). previous information has to a large extent emphasized the safety of gm foods for human consumption. however, new information also needs to emphasize the potential environmental benefits of genetic modification technologies and that these technologies are equally natural as other breeding technologies. furthermore, it should be emphasized that there is nothing inherent in gene modification that reduce animal welfare or fairness. it is also important to focus on potential benefits of the technology for local and domestic production. for example, gm resistance may be reduced by promoting the environmental benefits through, for example, creating pesticide-free labeling equivalents. the risks may also be less and the benefits more evident to consumers for the crispr technology as compared with traditional genetical modification technologies (bartkowski et al., 2018). second, our results suggest that consumers’ current safety concerns about gm foods may be reduced if european governments adopt more liberal policies towards gm foods agbioforum, 25(2), 2023 | 146 ardebili & rickertsen — food values, personality traits, and attitudes towards genetically modified food in norway and the united states (pakseresht et al., 2017). finally, businesses could try and attract price sensitive consumers by promoting the low prices of gm food products. there are some limitations in this study. first, the personality traits were measured using a short version of the big five model. a longer version with more items would provide more nuances. however, such versions would also be more complex and take more time for the respondents in surveys not focusing only on personality traits. second, a nearly balanced incomplete block design (nbibd) was used for the allocation of food values across the choice sets in the bws experiment. other designs such as balanced incomplete block design (bibd) have better properties. however, given a fixed number of original items, bibd increases the size or number of choice sets, which would increase the complexity and cognitive burden and influence respondents’ attentiveness to the choice task (scarpa & rose, 2008). third, the data was collected through an online survey where the respondents’ attentiveness was not controlled for. fourth, the samples are not completely representative for the populations in the two countries with respect to some socioeconomic variables. both samples are more educated than their respective country populations. about 63% and 51% of the norwegian and the us respondents, respectively, had a university degree as compared with 33% and 28% in the two populations. in the norwegian sample, the average age is 53 years as compared with a population average of 39 years, and 54% were married as compared with 35% in the population. fifth, there are some possible limitations with the wtp questions. the premiums were stated without real economic incentives, which potentially can result in a hypothetical bias in stated wtp values. furthermore, the respondents had no alternative to express a positive wtp for the gm alternatives. previous studies have found that framing of the questions may affect consumers’ attitudes and evaluation of gm foods (hess et al., 2016; hu et al., 2006). however, allowing both positive and negative wtp values for the gm alternatives would add to the complexity and could introduce confusion among the respondents. finally, we asked about respondents’ wtp to avoid the gm-food products without any explanation of the technology. as discussed in lusk et al. 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(2015). consumer perception of genetically modified organisms and sources of information. advances in nutrition, 6(6), 842-851. doi: https://doi.org/10.3945/an.115.008870 https://agbioforum.org/menuscript/index.php/agb/article/view/13/6 https://agbioforum.org/menuscript/index.php/agb/article/view/13/6 https://psycnet.apa.org/record/1945-00500-000 https://doi.org/10.1080/13548506.2019.1687918 https://doi.org/10.1080/13669877.2019.1591491 https://www.who.int/news-room/questions-and-answers/item/food-genetically-modified https://www.who.int/news-room/questions-and-answers/item/food-genetically-modified https://doi.org/10.3945/an.115.008870 leave agbioforum, 26(3): 119-127. ©2024 agbioforum jian et al — assessing temperature regulation for roof full-open glass greenhouse in yangtze river delta region: a time... assessing temperature regulation for roof full-open glass greenhouse in yangtze river delta: a time series comparison and cfd method approach zhang weijian school of mechanical engineering, college of engineering, universiti teknologi mara, selangor, malaysia. email: m15751010257@163.com nurnida elmira binti othman* school of mechanical engineering, college of engineering, universiti teknologi mara, selangor, malaysia. email: nurnida@uitm.edu.my azli bin abd razak school of mechanical engineering, college of engineering, universiti teknologi mara, selangor, malaysia. email: azlirazak@uitm.edu.my the yangtze river delta (yrd) is a densely populated region where the advancement of efficient and intensive agricultural practices is crucial. glass greenhouses, particularly in areas such as shanghai, frequently become unusable during the summer months due to excessive internal temperatures, primarily resulting from inadequate knowledge of cooling techniques. this study employs a time series comparative approach to evaluate the cooling performance under seven different operational conditions, utilising computational fluid dynamics (cfd) to simulate and illustrate the greenhouse characteristics when subjected to external wind forces specific to the yrd. the findings reveal that, in glass greenhouses lacking side windows, the internal temperature distribution during summer—under the prevailing southerly wind conditions—exhibits a general pattern of lower temperatures in the south and west, and higher temperatures in the north and east. this indicates that the southwest quadrant achieves the most effective cooling, whereas the northeast quadrant performs poorly in this regard. moreover, mechanical ventilation proved significantly more effective than natural ventilation, achieving a cooling reduction of up to 4.02°c compared to 1.53°c in naturally ventilated greenhouses. natural ventilation still outperformed conditions with no ventilation at all. in addition, the implementation of multi-layer shading nets demonstrated notable cooling benefits. when outdoor radiation exceeded 800 w/m², the use of two shading layers achieved a temperature reduction of 4.5°c, whereas a single layer provided a reduction of 3.7°c in experimental settings. based on these analyses, the study proposes specific strategies for the utilisation of glass greenhouses under the summer climatic conditions typical of the yangtze river delta. keywords: greenhouse, temperature regulation, time series comparison, cfd, yangtze river delta region. introduction the yrd region is a triangular megacity that generally comprises shanghai, southern jiangsu, and northern zhejiang. this area lies at the core of the southern section of the yangtze river. rapid urbanisation within the region has resulted in a globally significant agglomeration of metropolitan areas. spanning approximately 350,000 square kilometres, the yrd is home to over 240 million individuals. given the high population density, the promotion of efficient and sustainable greenhouse agriculture is of particular importance in this region (fan et al., 2023). currently, greenhouses in the yrd experience severe internal heat accumulation during the summer, rendering many unusable due to insufficient knowledge regarding effective cooling regulation methods. this situation leads to resource inefficiencies, especially in light of increasing pressure on food supply chains (wang xinzhong, 2016). therefore, investigating the thermal regulation mechanisms within greenhouses during the summer in the yrd and establishing appropriate cooling strategies is of considerable practical value. such studies also offer theoretical guidance for greenhouse design and operational improvement. during summer under hot and humid climatic conditions, commonly employed cooling techniques in greenhouses include wet curtain-fan systems, circulation fans, shading nets, natural ventilation, and other related approaches (ganguly & ghosh, 2011). substantial research has been undertaken concerning the application of these methods under various climatic scenarios (badji et al., 2022). one study examined mechanical ventilation by combining practical experimentation with cfd-based simulations, demonstrating that the height of fan installation significantly affects the extent of the cooling zone, with diminished effectiveness beyond that height (floresvelazquez et al., 2014). another investigation indicated a direct relationship between fan power and cooling efficiency—greater power resulted in a more substantial reduction in indoor temperature relative to external conditions (ghani et al., 2020). further work explored the nuanced impacts of mechanical ventilation by testing four different inlet air velocities and analysing their influence on parameters such as temperature gradients, air velocity fields, direct irradiation patterns, and static pressure distribution within agricultural greenhouses (chiboub et al., 2024). in relation to natural ventilation, findings have shown that the combined use of side and roof vents leads to improved ventilation efficiency, outperforming setups utilising only side or roof openings (villagrán et al., 2021). another study investigating ventilation and cooling in continuous gable plastic greenhouses revealed that factors such as side vent aperture and crop height considerably affect the mailto:m15751010257@163.com mailto:nurnida@uitm.edu.my mailto:azlirazak@uitm.edu.my agbioforum, 26(3), 2024 | 120 jian et al — assessing temperature regulation for roof full-open glass greenhouse in yangtze river delta region: a time... internal microclimate (lyu et al., 2022). additional researchers have observed that temperature distribution in greenhouses is often affected by the choice of ventilation strategy, with natural ventilation outcomes strongly influenced by prevailing wind directions (wang et al., 2021). studies on shading nets have demonstrated that such installations not only reduce incoming solar radiation but also enhance cooling capacity and retain internal humidity, thus maintaining greenhouse conditions suitable for crop development even during periods of high external temperature (ahmed et al., 2019). further evidence indicates that shading nets also help to regulate temperature and humidity inside the greenhouse, thereby optimising the internal environment for plant growth (nomura et al., 2022). time series analysis has also been applied in greenhouse studies, particularly for forecasting and comparative assessments, confirming its widespread adoption in this domain (ali & hassanein, 2020; cao et al., 2023; ludwig, 2019). moreover, cfd techniques have gained prominence in recent years as a key methodology in the study of greenhouse dynamics (choi, kim, & lee, 2024; feng et al., 2024). despite the extensive research into cooling systems and ventilation methods, it is important to acknowledge that greenhouses exhibit region-specific characteristics, especially due to climatic variability. as such, the introduction of modern agricultural greenhouses into new regions requires tailored research to ensure the development of effective and context-specific management strategies. experimental setup and procedure in the yrd region, glass greenhouses are often rendered inoperative during the summer months due to the absence of effective cooling strategies. this study aims to examine the regulatory factors influencing greenhouse environments during summer and to conduct experimental investigations into temperature distribution by modifying operational parameters such as ventilation systems and shading nets. time series analysis, which involves data points arranged in chronological sequence, facilitates a comparative evaluation of the impact of multiple operational configurations on a consistent test environment. in this context, temperature represents a critical variable influencing plant growth within greenhouses. accordingly, time series experiments focusing on ventilation regulation and shading net configurations were implemented. experimental data were analysed using a comparative algorithm and cfd simulation to identify patterns in internal temperature regulation. based on these findings, a strategic framework for greenhouse operation during the summer months in the yrd region was proposed. the overall study design is illustrated in figure 1. the cfd simulations conducted in this research are based on steady-state analysis, incorporating energy equations, turbulence models, and radiation models, with a primary emphasis on temperature variation. owing to inherent limitations within computational fluid dynamics, a degree of discrepancy between simulation outcomes and actual environmental conditions is inevitable. furthermore, as this study primarily utilises meteorological data specific to the yrd, and given that greenhouse performance is influenced by regional environmental variables, the findings provide theoretical guidance applicable predominantly to this geographical context. figure 1: overall research framework. experiment object a one-span, three-roof, fully open glass greenhouse located in ye yuan (9166 caolang highway, jinshan district, shanghai, china) was selected as the subject of this study, as depicted in figure 2. the greenhouse is geographically situated at 119.78°e and 31.7°n, within the subtropical monsoon climatic zone (fan et al., 2023), the primary framework of the greenhouse comprises structural steel, while the surrounding enclosure consists of doublelayered hollow float glass. the roof features a fully open skylight design, with two layers of mesh internal shading nets installed at the top. the greenhouse ridge is aligned along the north–south axis, as depicted in figure 3. agbioforum, 26(3), 2024 | 121 jian et al — assessing temperature regulation for roof full-open glass greenhouse in yangtze river delta region: a time... exhaust fans were mounted on the northern wall, whereas wet curtains were positioned on the southern wall. circular flow fans were vertically arranged within the interior, with an installation height of approximately 2 metres. notably, the east and west walls of the greenhouse were constructed without side windows. figure 2: the roof full-open greenhouse figure 3: schematic view of simulated greenhouse. layout of measurement points and selection of instruments according to previous research (odhiambo et al., 2020), solar radiation in the yrd region, including shanghai, reaches its peak during july and august. the present experiment was conducted in early august, characterised by intense solar radiation and representing typical hot summer conditions in the yrd region. indoor temperature within the greenhouse was monitored using zdr-3w1s automatic temperature recorders (temperature measurement range: −40 to 100 °c, accuracy: ± 0.1 °c; humidity measurement range: 0 to 100% rh, accuracy: ±3% rh). the crop height in the experimental greenhouses generally ranged between 0.4 and 1.5 m. considering the prevalent features of greenhouse cultivation in the yrd region (ganguly & ghosh, 2011), heights of 0.7 m and 1.3 m were selected to represent typical plant growth stages, with greater emphasis placed on the 0.7 m level. a height of 2.1 m was chosen to represent the upper region of the greenhouse. temperature sensors were arranged within the central section of the greenhouse, comprising a total of 21 measurement points. the sensor layout formed two intersecting vertical planes, as illustrated in figure 4. each sensor was designated using the label i, where the value of i corresponds to a natural number from 1 to 21. the positional coordinates of each sensor within the defined coordinate system are detailed in table 1. figure 4: sensor locations formed two crossed vertical planes. table 1: the coordinates of the temperature sensors setting in greenhouse. code:𝒊 x /m y /m z /m code:𝒊 x /m y /m z /m 1 14 0.7 4.3 13 14.8 1.3 24.8 2 14 0.7 12.5 14 17.4 1.3 24.8 3 14 0.7 24.8 15 14 2.2 4.3 4 14 0.7 33 16 14 2.2 12.5 5 11.4 0.7 24.8 17 14 2.2 24.8 6 14.8 0.7 24.8 18 14 2.3 33 7 17.4 0.7 24.8 19 11.4 2.2 24.8 8 14 1.3 4.3 20 14.8 2.2 24.8 9 14 1.3 12.5 21 17.4 2.2 24.8 10 14 1.3 24.8 11 14 1.3 33 12 11.4 1.3 24.8 the weather station employed in the experiment is an ultrasonic automatic weather station manufactured by beijing tian-yu-de company. the instrument used was a tyd-zs2 environmental data logger, with a temperature measurement accuracy of ±0.1 °c and a measurement range of −40 to 80 °c. the wind speed accuracy is 0.1 m/s, with a measurement range of 0 to 70 m/s, while the wind direction accuracy is 1°, with a measurement range of 0 to 360°. the weather station was positioned outside, 3 metres from the northern wall, to monitor fluctuations in outdoor temperature, as shown in figure 5. agbioforum, 26(3), 2024 | 122 jian et al — assessing temperature regulation for roof full-open glass greenhouse in yangtze river delta region: a time... figure 5: the weather station instrument set up at outdoor condition. experiment methods: ventilation time series experiment and analysis the data were collected from two sets of time series experiments. the basic conditions of the greenhouse during the experiments were as follows: the rear cover of the fan on the northern wall was opened to allow external airflow to enter the greenhouse through the fan opening, while the ventilation openings of the wet curtains on the southern wall served as vents. the skylight was opened to an angle of 52.4°, and the three roof skylights of the middle span of the greenhouse were fully opened. in contrast, only the small roof skylight in the middle was opened in the other two spans of the greenhouse. the time series experiment for ventilation was conducted as follows: the tyd-zs2 weather station (environmental data logger) was set to collect one group of temperature data every minute. the time series for three states were measured in the following order: 1) no ventilation, 2) natural ventilation, and 3) fan and wet-curtain ventilation. the values of c for these four operating conditions were 1, 2, 3, and 4, respectively. the zdr-3w1s devices were automatically calibrated and set to the automatic measurement mode, recording data every 5 minutes. the measurement time for each condition was 20 minutes, with 5 sets of values recorded for each condition. a 10-minute interval between conditions was allowed to adjust the greenhouse equipment and stabilise the environment for the next condition. the specific measurement steps are illustrated in figure 6. figure 6: steps of ventilation regulation time series experiment. analysis with comparison algorithm to provide a mathematical description of the time-series data analysis and comparison process, the following definitions were established in table 2 (which includes parameters for the shading net time series experiment and the analysis section). table 2: algorithm parameter list. parameters �̅�𝑷(𝒊𝒄) meaning mean value of a measurement point in a given measurement parameters 𝑐 𝑖 meaning representation of measurement conditions: 1 for no ventilation; 2 for natural ventilation; 3 for fan-wet curtain ventilation measuring points code parameters 𝑚 𝑡𝑖𝑚𝑐 meaning for the count of measurements; 𝑐 = 1,2,3,4, m = 5; 𝑐 = 5,6,7, m = 9 measured values with constant 𝑐,𝑖, 𝑚 parameters �̅�𝑜𝑐 �̅�𝑠𝑐 meaning measurement of the average value of the external temperature for corresponding period of time under operating conditions average of several specific measurement points for a given measurement parameters 𝑛 𝑠 meaning natural numbers, the upper limit of 𝑚 value for �̅�𝑃(𝑖𝑐) natural numbers, the upper limit of 𝑚 value for �̅�𝑠𝑐 parameters ∆𝑇𝑠𝑐 meaning difference between the mean value of all measurement points for a given measurement and the mean value of the external temperature in order to complete the experiment data analysis, the following equations needs to be used: �̅�𝑃(𝑖𝑐) = ∑ 𝑡𝑖𝑚𝑐 𝑛 𝑚=1 𝑛 (1) �̅�𝑠𝑐 = ∑ �̅�𝑃(𝑖𝑐) 𝑠 𝑚=1 𝑠 (2) ∆𝑇𝑠𝑐 = �̅�𝑠𝑐 − �̅�𝑜𝑐 (3) to understand the indoor temperature conditions under each operating state, the analysis was carried out as follows: i), ii), and iii) i. temperature variation and distribution in the north-south direction in greenhouses under various ventilation states equation (1) represents the average value of each measurement point, in here, 𝑐 =1, 2, 3 and 𝑖 =1, 2, 3, 4, 𝑛=5. the experimentally measured values were calculated according to equation (1), with the calculated values plotted on the vertical axis and the y-axis coordinates of the measurement points in the greenhouse used as the coordinate values. the resulting comparison curve is shown in figure 7. by comparing the curves, the temperature distribution in the north-south direction under the four ventilation states showed a pattern of lower temperatures in the south and higher temperatures in the north. however, the cooling capacity of the c = 1 condition was weaker than that of the c = 2 condition, and the cooling agbioforum, 26(3), 2024 | 123 jian et al — assessing temperature regulation for roof full-open glass greenhouse in yangtze river delta region: a time... capacity of the c = 3 condition was stronger than both the c = 1 and c = 2 conditions. figure 7: temperature variation and distribution in the north-south direction in the greenhouse under 3 type ventilation states. ii. temperature variation and distribution in the east-west direction in the greenhouse under various ventilation condition using equation (1), where c represents 1, 2, and 3, i corresponds to 5, 3, 4, 7, and n = 5, the average value for each measurement point was calculated. the calculated values were plotted on the vertical axis, with the x-axis coordinates of the measurement points in the greenhouse as the corresponding values. the resulting comparison curve is shown in figure 8. upon comparing the curves of the east-west temperature distribution under the four ventilation states, it was observed that the horizontal temperature distribution in the greenhouse generally showed a trend of lower temperatures in the west and higher temperatures in the east. figure 8: temperature variation and distribution in the east-west direction in the greenhouse under 3 type ventilation states. iii. temperature variation and distribution in the height direction in greenhouses under various ventilation states using equation (1), where c represents 1, 2, and 3, and i ranges from 1 to 21, with n = 5, the average value for each measurement point was calculated. the results were plotted on the vertical axis, with the time of measurement in the greenhouse as the corresponding coordinate value. agbioforum, 26(3), 2024 | 124 jian et al — assessing temperature regulation for roof full-open glass greenhouse in yangtze river delta region: a time... the resulting curve is shown in figure 9. from figure 9, it is clearly evident from the comparison that, in all four ventilation states, the temperature decreased with height. mechanical ventilation exhibited significantly better cooling performance, and under condition c = 3, the temperatures at the two heights of 0.7m and 1.3m were similar, though the difference between these values and the temperature at 2.2m was marked in the mechanical ventilation state. using equations (1), (2), and (3), the difference between the indoor and outdoor mean temperatures at the three heights was calculated, as shown in table 3. figure 9: effect of 3 types of ventilation usage on indoor temperature. table 3: difference of the indoor and outdoor mean values in three heights. parameters 𝑪=1 𝑪 =2 𝑪=3 height 0.7 -0.72 1.53 4.02 height 1.3 -2.15 0.63 3.78 height 2.2 -3.14 0.95 1.10 it was found that the cooling effect of mechanical ventilation was significantly better than that of natural ventilation. at a height of 0.7m in the experimental greenhouse, mechanical ventilation achieved a cooling of up to 4.02°c, while natural ventilation resulted in only 1.53°c of cooling. furthermore, the cooling effect of natural ventilation was notably better than no ventilation, with no ventilation causing a temperature increase of up to 0.72°c, compared to the 1.53°c cooling achieved with natural ventilation. the height range of the wet curtain was between 0.4 and 1.9m, while the fan's effective range was from 0.3 to 1.7m. under condition c = 3, mechanical ventilation produced a cooling of 4.02°c at 0.7m and 3.08°c at 1.3m. however, at a height of 2.2m, beyond the influence of mechanical ventilation, the cooling effect reduced to 1.10°c, which was almost identical to the value observed with natural ventilation. this indicates that mechanical ventilation had little impact beyond the height range of the fan and wet curtain, suggesting that the installation height of mechanical ventilation should align with the crop height zone during greenhouse design. experiment methods: shading net time series experiment and analysis the shading net time series experiment was conducted as follows: the layout and setup of the weather station and sensors were identical to those used in the ventilation time series experiment. the greenhouse operated under natural ventilation, with measurements beginning at 2:00 pm, during which the light intensity exceeded 800 w/m². the time series was measured under three different states in the following order: 1. two-layer shading net, 2. one-layer shading net, and 3. no shading net. the values of c for these three operating conditions were 4, 5, and 6, respectively. the specific measurement steps are shown in figure 10. figure 10: steps of the shading net time series experiment. analysis of shading net cooling experiment the three measurement points, i = 3, i = 10, and i = 17, located in the central area of the greenhouse, were selected to represent the temperature at heights of 0.7m, 1.3m, and 2.2m during the shading net cooling experiment. figure 11 shows the temporal changes in the values for i = 3, i = 10, and i = 17, along with a comparison to the outdoor temperature. as shown in the figure 11, when the shading net was reduced from two layers to one layer, the greenhouse's cooling performance decreased immediately. furthermore, when the shading net was removed entirely, the cooling performance declined even further. equation(3) was for calculating the difference between the average temperature inside the greenhouse and the average outdoor temperature, where 𝑛 is 9, 𝑐 is 4, 5, 6; 𝑖 is 1-21, 𝑠 =21, and �̅�𝑃(𝑖𝑐) was from equation(1), �̅�𝑠𝑐 was from equation(2). under two layers of shading net, the difference ∆𝑇𝑠𝑐 was 4.5℃, when it became one layer of shading net, the difference was 3.7℃, and when there was no shading net, the difference was only 1.3℃. the weather station recorded outdoor radiation levels exceeding 800 w/m². the experiment clearly demonstrates that the number of shading net layers significantly impacts the greenhouse's cooling efficiency under high solar radiation during the summer. figure 11: effect of 3 types of shading net usage on indoor temperature. results and discussion simulation analysis with cfd to further explore the impact of external airflow on the greenhouse interior, cfd simulations were conducted using fluent software. a set of instantaneous values corresponding to the condition $c = 4$ was selected as the basis for the simulation setup. the computational domain agbioforum, 26(3), 2024 | 125 jian et al — assessing temperature regulation for roof full-open glass greenhouse in yangtze river delta region: a time... used in the simulation was expanded by a factor of ten, as illustrated in figure 12. in the fluent simulation, the energy equation was enabled, and the standard turbulence model with standard wall functions was selected. additionally, the discrete ordinates radiation model was applied. the latitude and longitude values in the model were set to match the location of the experimental greenhouse. the material properties used in the simulation were specified as outlined in table 4. figure 12: calculation domain settings. table 4: material properties. material type density /kg.m-3 specific heat capacity /jkg-1.k-1 thermal conductivity /wm.k-1 absorption coefficient /m-1 refract-ion rate concrete 2100 880 1.4 0.6 1.6 glass 2500 700 0.7 0.1 1.7 air 1.17 1 025.5 0.03 0 1.0 in the fluent simulation setup, the calculation domain was configured with the east and south boundaries designated as wind-inlet regions, while the north and west boundaries were set as wind-outlet regions. the wind speed was set to 0.8 m/s, and the wind direction was established at 135°, with the wind direction decomposed into its vector components to ensure an accurate representation of airflow. the inlet temperature was set at 36°c, based on the experimental measurements taken at the site. additionally, the temperature of the greenhouse walls and floor, both inside and outside, was set according to the experimental data, as detailed in table 5. to simulate the greenhouse structure accurately, each glass wall was modelled as a translucent wall, allowing for the passage of solar radiation, thereby reflecting the experimental conditions. these settings ensured the simulation closely matched the real-world conditions observed in the greenhouse during the experiment, enabling a more precise analysis of the airflow dynamics and temperature distribution within the environment. table 5: temperatures of wall and floor. area outside floor inside floor south wall north wall east wall west wall roof glass temperature/℃ 51 43 42 41 42 43 43 the wet curtain side was set as a porous medium, with a permeability α of 2.4 × 10⁻⁶ m², based on the fundamental seepage law and bernoulli's windpressure relationship (chevalier et al., 2013). for the shading net, the simulation accounted for radiation discounting based on material parameters from the experimental site. the solar radiation was set to decrease from 821 w/m² to 341 w/m² for the two layers of the shading net, as per the literature and experimental conditions (abdel-ghany et al., 2015). the measured and simulated values for the 21 measurement points are shown in figure 13. the maximum difference between the greenhouse measured and simulated values is 2.4°c, with a maximum relative error of 6.6%. the minimum difference is 0.1°c, with the most relative error being 0.2%, and the average relative error is 2.5%. the model was validated as usable. a 1m horizontal section at a middle height of 0.7-1.3m was selected to analyse the airflow and temperature distribution. figure 13: measured values and simulated values. figure 14: 1m height cross-section gas flow. figure 14 shows the gas flow cross-section at a height of 1m. it illustrates that the south-east wind entered the greenhouse through the southern wet curtain hole, moving from south to north. this resulted in a lower temperature in the south and a higher temperature in the north. in the east-west direction, due to the absence of side windows on the east and west walls, the south-easterly wind was deflected towards the west, with weaker ventilation towards the east. this created an area of slow airflow on the northeast side of the greenhouse. figure 15: 1m height cross-section temperature distribution. figure 15 shows the temperature distribution cross-section at a height of 1m, where the greenhouse temperature agbioforum, 26(3), 2024 | 126 jian et al — assessing temperature regulation for roof full-open glass greenhouse in yangtze river delta region: a time... exhibits a west-low, east-high trend. the northeast quadrant also shows low temperatures, which aligns with the airflow pattern observed. the simulation results were consistent with the experimental analysis, confirming the accuracy of the temperature distribution. according to the "standard for meteorological parameters of wind environment around buildings" (zhuang et al., 2020) issued by china, the prevailing wind direction in the yrd region, represented by shanghai, is southeast during summer. this confirms that the temperature distribution observed in the greenhouse is representative of the typical characteristics in the yrd region. figure 16 presents the wind rose chart of the average wind direction every 10 minutes during the experiment, showing that the wind predominantly came from the se region. figure 16: wind rose during the experiment. conclusion the study examined the effects of various temperature control measures, including natural ventilation, fan-wet curtain ventilation, and shading net usage. based on the analysis and discussion, the following conclusions can be drawn: i. in glass greenhouses without side windows in the yrd region, the internal temperature distribution during summer follows a general pattern, with temperatures being lower to the south and higher to the north, as well as lower to the west and higher to the east. the cooling is most effective in the southwest quadrant, while the northeast quadrant exhibits poor cooling performance. ii. in the yrd region, the cooling effect of mechanical ventilation in greenhouses during summer is significantly better than that of natural ventilation, which in turn outperforms the no-ventilation condition. in the experimental greenhouse at a height of 0.7 m, mechanical ventilation reduced the temperature by up to 4.02°c, while natural ventilation achieved a reduction of 1.53°c, and no ventilation resulted in a temperature increase of 0.72°c. the cooling effect of mechanical ventilation is most effective within the installation height range of the fans and wet curtains, and significantly weaker outside these areas. iii. during high-radiation summer weather, multi-layer shading nets provide a significant cooling effect for greenhouses. when outdoor radiation exceeds 800 w/m², the temperature difference between the average indoor and outdoor temperatures is 4.5°c with two layers of shading net, 3.7°c with one layer, and only 1.3°c with no shading net. further strategies for improving summer greenhouse conditions are proposed: i. given the temperature distribution of the greenhouse, with lower temperatures to the south and west, and higher temperatures to the north and east, crops requiring more cooling should be planted in the southwest quadrant of the greenhouse. this will help to optimise the cooling efficiency and ensure better crop growth conditions. ii. since mechanical ventilation offers a significantly better cooling effect than natural ventilation, and provided energy consumption is manageable, the use of mechanical ventilation is recommended when natural ventilation proves insufficient. additionally, mechanical ventilation should be installed at heights corresponding to the crop height zone in greenhouse designs. iii. to maximise cooling in high-radiation summer conditions, multi-layer shading nets should be employed, provided they do not compromise the light levels necessary for plant growth. references abdel-ghany, a. m., picuno, p., al-helal, i., alsadon, a., ibrahim, a., & shady, m. 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cost efficient supply chain management; financial performance; resource-based view; top management support. 1. introduction in the contemporary, intensely competitive business environment, organizations continually pursue strategies and practices aimed at facilitating sustainable growth and enduring prosperity (hristov & appolloni, 2022). the interrelationship of diverse factors, encompassing both internal and external dimensions, exerts an influence on an organization's financial performance (wasike, 2017). internally, a company's financial health is significantly shaped by the roles played by its management, leadership, workforce, and operational efficiency (pattnaik & sahoo, 2021; sefidan et al., 2021). proficient leadership and a motivated labour force have the potential to catalyse innovation and productivity, thereby exerting a direct influence on the organization's financial outcome. the optimization of procedures, the judicious management of costs, and the allocation of resources are imperative for the preservation of a competitive advantage (rinaldi & dalle, 2021; tam, moura, oliveira, & varajão, 2020). externally, financial outcomes are shaped by market dynamics, shifts in customer preferences, technological advancements, and the prevailing global economic conditions (shen, yeh, & lin, 2022). adapting to market trends and addressing geopolitical events, regulatory changes, and supply chain disruptions are essential for risk mitigation (irfan, sumbal, khurshid, & chan, 2022). thorough analysis and strategic responses to these internal and external factors enable organizations to maintain strong financial performance, ensuring long-term sustainability and success (govindan, 2018). hrm practices, cost-efficient supply chain management, and top management support are pivotal factors in an organization's success (liggans et al., 2019; tuan, 2022). this study explores intricate relationships between these factors, offering valuable insights for businesses aiming to enhance financial performance in a dynamic global market. organizational success relies on resource management and utilization efficiency (jose, p.m, & kuriakose, 2022). among these factors, human capital emerges as a preeminent asset, often characterized as the lifeblood of an organization. in a globalized and fiercely competitive business landscape, the paramount importance of hrm practices in shaping an organization's trajectory cannot be overemphasized (ahmed et al., 2020). hrm practices encompass a diverse spectrum of activities, encompassing talent management, recruitment, training, and the cultivation of the workforce (alreahi et al., 2023). these practices exert an impact not only on the calibre of an organization's workforce but also on its capacity to adapt to evolving circumstances, foster innovation, and maintain competitiveness (saks, 2022). hence, recognizing the influence of hrm practices on financial performance holds paramount significance. talent management entails a systematic process of identification, attraction, development, and retention of high-potential individuals within an organization (gallardo-gallardo, thunnissen, & scullion, 2020). this practice acknowledges that specific employees possess distinctive skills, knowledge, and competencies capable of propelling the organization toward success (singh, 2021). talent management strategies aim to foster the growth of these individuals and to position them in roles where their impact on the organization is optimized (kravariti et al., 2022). furthermore, highly talented employees typically exhibit heightened productivity and mailto:caicen.c3@gmail.com agbioforum, 25(1), 2023 | 243 cen — maximizing business success: the influence of human resource management practices … efficiency, resulting in direct cost savings and enhanced profitability (hongal & kinange, 2020). furthermore, attracting and retaining top talent can result in decreased turnover rates, thereby mitigating the expenses linked to recruiting and training new employees (whysall, owtram, & brittain, 2019). concurrently, recruitment encompasses the process of alluring and selecting individuals to occupy vacant roles within an organization. effective recruitment practices are indispensable for cultivating a skilled and proficient workforce (tumasjan, kunze, bruch, & welpe, 2020). organizations that excel in their recruitment endeavours often boast employees with suitable skills and qualifications for their positions, thereby diminishing the probability of inefficiency and turnover (fadda, marinò, pischedda, & ezza, 2022). a meticulously organized recruitment process can further contribute to financial success by ensuring the placement of suitable individuals in pivotal roles. this, in turn, can result in heightened productivity and a reduction in errors and inefficiencies, exerting a substantial impact on an organization's profitability. additionally, training and workforce development encompass activities with the aim of augmenting employees' knowledge, skills, and capabilities (yoo et al., 2022). these practices assume a crucial role in guaranteeing the sustained competence and adaptability of employees within a perpetually evolving business landscape. allocating resources to employee training and development can yield a workforce that is more adept at addressing novel challenges and capitalizing on emerging opportunities (kwon, 2019). this adaptability can manifest as a more innovative and resilient organization, capable of responding to market shifts. furthermore, well-trained employees often exhibit heightened productivity and efficiency, resulting in cost savings and enhanced profitability (hartanto, agussani, & dalle, 2021; kuknor & bhattacharya, 2022). despite the significance of these hrm practices, the degree of their effectiveness in achieving high levels of organizational financial performance has received limited scrutiny. therefore, the present study seeks to investigate these intricate dynamics within organizations operating in the agriculture sector. concurrently, within an era marked by globalization and intensified competition, supply chain management has transformed into an indispensable component of business triumph. cost-efficient supply chain management guarantees the optimal and cost-effective delivery of an organization's products and services to the market (adivar, hüseyinoğlu, & christopher, 2019). this efficiency can exert a direct influence on an organization's profitability. consequently, this study aims to investigate the function of cost-efficient supply chain management as a mediator in the connection between hrm practices and financial performance (bimha, hoque, & munapo, 2020). furthermore, the impact of top management support within the realm of hrm and supply chain management is a pivotal consideration. the endorsement of hrm practices and supply chain initiatives by top management can wield a substantial influence on their execution and ultimate success (golob, davies, kernstock, & powell, 2020). 2. aims and objectives hence, this study delves into the examination of top management support as a moderator in the relationship between hrm practices, cost-efficient supply chain management, and financial performance. drawing on the resource-based view, the present study aims to; • examine the impact of hrm practices (talent management, recruitment, training, and workforce development) on cost-efficient supply chain management financial performance. • investigate the role of cost-efficient supply chain management in shaping the financial performance of organizations. • assess the mediatory role of cost-efficient supply chain management in the relationship between hrm practices and financial performance. • investigate the moderating influence of top management support on the link between cost-efficient supply chain management and financial performance. therefore, this study delves into the intricate interrelationships between hrm practices, cost-efficient supply chain management, top management support, and financial performance. by elucidating the significance of each of these factors and comprehending their interplay, we aspire to offer valuable insights to organizations striving for optimal success in the current dynamic and competitive business landscape. 3. research significance 3.1 the impact of hrm practices on financial performance effective talent management practices, encompassing the identification of high-potential employees and the cultivation of their skills, have the potential to cultivate a more proficient and engaged workforce. employees who perceive their value and are offered growth prospects are inclined to exhibit heightened productivity and efficiency in their respective roles (hongal & kinange, 2020). heightened productivity directly translates to cost savings and improved financial performance (mandliya et al., 2020). concurrently, the identification and development of top talent within an organization can lead to a more innovative workforce (hristov & appolloni, 2022). research also indicates that talent management practices with a focus on retaining high-potential employees can result in reduced turnover rates (yoo et al., 2022). reduced turnover provides workforce stability and leads to cost savings related to recruitment, onboarding, and training of new employees (hristov & appolloni, 2022). these cost savings have a favourable effect on an organization's financial performance. effective recruitment practices ensure the selection of candidates with the requisite skills and qualifications, leading to a workforce better prepared for effective performance. this, in turn, diminishes errors, inefficiencies, and the need for costly on-the-job training (gutierrez, kincaid, best, & adler, 2021). agbioforum, 25(1), 2023 | 244 cen — maximizing business success: the influence of human resource management practices … efficient recruitment processes can expedite the placement of candidates into vacant positions. swift on boarding of new employees allows organizations to sustain productivity levels and respond to business requirements more promptly, potentially enhancing revenue and profitability (fadda, marinò, pischedda, & ezza, 2022). research also illustrates that recruitment practices capable of attracting top talent can confer a competitive advantage (rodney, valaskova, & durana, 2019). in fiercely competitive industries, positioning the right individuals in appropriate roles can empower an organization to surpass its competitors, ultimately resulting in superior financial performance. simultaneously, investment in training and workforce development guarantees a continual acquisition of new skills by employees, ensuring adaptability in a swiftly evolving business environment. a workforce capable of adapting to novel challenges and opportunities is more likely to stimulate innovation, diminish errors, and sustain a competitive advantage, thereby exerting a positive influence on financial performance (gutierrez, kincaid, best, & adler, 2021). well-trained employees tend to exhibit higher productivity and efficiency in their respective roles (kwon, 2019). their skills and knowledge can be applied to enhance processes, diminish waste, and augment overall productivity, resulting in cost savings and an amelioration in financial performance (manresa, bikfalvi, & simon, 2019). it underscores that organizations that allocate resources to effective hrm practices are better poised to excel in the dynamic and competitive contemporary business environment. hence, it is postulated that; h1: hrm practices, including a) talent management, b) recruitment, and c) training and workforce development, can have a substantial impact on financial performance. 3.2 the impact of hrm practices on costefficient supply chain management effective talent management ensures the presence of a pool of skilled and capable employees within an organization. in the realm of supply chain management, this equates to having employees who possess a deep understanding of logistics, demand forecasting, and inventory management intricacies (whysall, owtram, & brittain, 2019). a proficient workforce can streamline supply chain processes, mitigate errors, and elevate cost efficiency. talent management is capable of identifying and nurturing employees with advanced problem-solving skills (hongal & kinange, 2020). in the realm of supply chain management, these employees can adeptly tackle challenges like route optimization, demand fluctuations, or supplier issues, resulting in cost savings. furthermore, recruitment practices can be tailored to attract individuals with specific skills pertinent to supply chain management, including expertise in procurement, logistics, or inventory management (köchling & wehner, 2020). employing individuals with the appropriate expertise can engender more efficient supply chain operations, fewer errors, and diminished operational costs. research validates that streamlined recruitment procedures expedite the filling of critical positions within the supply chain (fadda, marinò, pischedda, & ezza, 2022). this accelerates the onboarding of new employees and their seamless integration into supply chain processes, curtailing downtime and enhancing cost efficiency. additionally, training and workforce development can equip employees with the skills essential for overseeing intricate supply chain processes. for instance, employees trained in supply chain optimization techniques can diminish transportation and warehousing costs, thereby contributing to cost-efficiency (jha et al., 2020). ongoing training and development aid employees in adapting to shifts in the supply chain, such as emerging technologies or evolving customer demands. this adaptability enables organizations to sustain their competitiveness and cost-efficiency (junod perron et al., 2013). similarly, a highly skilled workforce can streamline processes, diminish costs, and enhance supply chain efficiency. hence, it is postulated that; h2: hrm practices, including a) talent management, b) recruitment, and c) training and workforce development, can have a substantial impact on cost-efficient supply chain management. 3.3 cost-efficient supply chain management and organization's financial performance effective supply chain management leads to reduced operational costs in multiple facets, spanning procurement, production, transportation, and inventory management. through process optimization and waste reduction, organizations can achieve substantial cost reductions (solekah, 2020). these cost reductions translate into increased profit margins and enhanced financial performance. a well-orchestrated supply chain guarantees the optimization of inventory levels, as excessive or inadequate inventory can result in financial losses (hornibrook, may, & fearne, 2015). effective inventory management prevents overstocking, cuts down on carrying costs, and mitigates the risk of product obsolescence, thereby directly enhancing financial performance. supply chain management optimizes production processes by ensuring the timely availability of materials and components, improving operational efficiency (govindan, 2018). this minimizes production delays and augments production efficiency, resulting in cost savings and heightened revenue. furthermore, a well-organized supply chain management system can confer a competitive advantage in the marketplace (akhtar, 2019). organizations capable of delivering products or services more swiftly, at a reduced cost, or with superior quality are positioned more robustly in the market. this competitive edge can lead to increased market share and, consequently, improved financial performance (irfan, sumbal, khurshid, & chan, 2022; juhriyansyah, dwi, & firdaus, 2021). hence, cost-efficient supply chain management stands as a pivotal factor influencing an organization's financial performance. thus, it is hypothesized; h3: cost-efficient supply chain management contributes to better financial performance. 3.4 mediatory role of cost-efficient supply chain management cost-efficient supply chain management, acting as a mediator, serves as the link between hrm practices and agbioforum, 25(1), 2023 | 245 cen — maximizing business success: the influence of human resource management practices … financial performance by bolstering operational efficiency. the streamlined movement of goods, services, and information within the supply chain guarantees the organization's smooth and cost-effective operations (wincewicz-bosy et al., 2022). when hrm practices, such as training and workforce development, empower employees with the essential skills to optimize supply chain processes, it culminates in heightened efficiency and cost reduction (muisyo, qin, ho, & julius, 2022). the mediator role of cost-efficient supply chain management is reflected in cost reduction. streamlined supply chain processes and waste reduction lead to lower production, transportation, and inventory holding costs. these cost savings directly bolster profitability, a significant driver of financial performance. supply chain management's mediator role is pivotal in mitigating supply chain risks, such as disruptions or uncertainties (bimha, hoque, & munapo, 2020; nurhayati et al., 2022b). well-designed supply chain management strategies shield the organization against unforeseen events that may adversely affect financial performance. by addressing these risks, cost-efficient supply chain management fosters stability and continuity. furthermore, proficient inventory management diminishes carrying costs and the threat of obsolescence, significantly influencing an organization's financial performance (kwon, 2019). thus, the mediator role of supply chain management aligns hrm practices with the organization's strategic objectives. when hrm practices yield a workforce capable of effectively optimizing supply chain processes, this alignment augments the organization's overall efficiency and costeffectiveness. this strategic alignment contributes to enhanced financial performance by ensuring that resources are channelled toward shared goals. hence, it is postulated that; h4: cost-efficient supply chain management mediates the association of hrm practices, i.e., a) talent management, b) recruitment, and c) training and workforce development with organizations' financial performance. 3.5 moderating role of top management support top management support guarantees the alignment of goals and objectives within cost-efficient supply chain management with the organization's overarching strategic vision. endorsing and actively promoting supply chain efficiency encourages the harmonization of supply chain practices with the organization's financial objectives (park, lee, lee, & reisinger, 2022). this alignment culminates in more focused and impactful supply chain strategies that exert a positive influence on financial performance (pattnaik & sahoo, 2021). top management possesses the authority to allocate resources, encompassing financial investments and personnel, to bolster supply chain management initiatives. the magnitude of their support directly influences the allocation of resources for supply chain optimization (madjar, oldham, & pratt, 2002). provision of adequate resources amplifies the efficacy of supply chain management practices, resulting in enhanced financial performance. furthermore, top management support can expedite the elimination of organizational hindrances impeding the efficient operation of the supply chain (khan, 2023). this support guarantees that supply chain professionals possess the requisite authority and resources to surmount obstacles, optimize processes, and elevate cost-efficiency (rubaca & khan, 2022). when these barriers are minimized, supply chain management practices can function at their maximum potential, delivering a positive impact on financial performance. concurrently, top management support fosters a culture of continuous improvement and innovation within the supply chain (nurhayati et al., 2022a; pattnaik & sahoo, 2021). support for supply chain professionals to explore novel avenues for efficiency enhancement and cost reduction engenders continuous improvements with a positive impact on financial performance. this underscores the pivotal synergy between top management support and cost-efficient supply chain management, ensuring that supply chain strategies are harmonized with the organization's financial objectives and executed effectively. hence, it is hypothesized that; h5: top management support moderates the association of cost-efficient supply chain management organization's financial performance such that the association is stronger in the case of higher support from top management. 3.6 theoretical framework of the study figure 1 illustrates the theoretical framework underpinning this study, rooted in the resource-based view (rbv) theory. at its core, this framework emphasizes that an organization's financial success hinges on the effective utilization of its distinctive resources and capabilities. the central focus of this study centres on comprehending the intricate relationships among hrm practices, supply chain management, top management support, and their collective impact on organizational financial performance. hrm practices, inclusive of talent management, recruitment, and training, are presented as integral constituents of an organization's resource base. this framework highlights the interaction of these elements in the pursuit of organizational success and serves as the basis for the study's empirical examination. figure 1: theoretical framework of the study command climate trust in leadership soldiers’ wellbeing coping mechanisms leaders’ commitment h4 a, b, c h2a h2b h2c h1c h1b h3 resilience training h5 h1a hrm practices agbioforum, 25(1), 2023 | 246 cen — maximizing business success: the influence of human resource management practices … 4. structure of review the theoretical underpinning of this study resides in the rbv theory, which offers a comprehensive framework for comprehending the interconnection between human resource management (hrm) practices, supply chain management, and financial performance. the rbv theory posits that an organization's competitive advantage and long-term success are predicated on the proficient utilization of its distinctive resources and capabilities (bag, pretorius, gupta, & dwivedi, 2021). in this context, human capital and supply chain efficiency are deemed critical organizational assets. hrm practices, encompassing talent management, recruitment, and training, constitute integral components of an organization's resource base (ojo, tan, & alias, 2022). the rbv theory underscores that companies with a skilled and motivated workforce are in a superior position to harness these resources for gaining a competitive advantage (khanra et al., 2022). high-potential individuals, when managed and nurtured effectively, can act as a wellspring of sustainable competitive advantage, given that their distinctive skills and competencies can augment innovation, productivity, and overall operational efficiency (collins, 2021). hence, this theory aligns with the study's objective of evaluating the influence of hrm practices on financial performance, recognizing that wellmanaged human resources are valuable assets that contribute to an organization's profitability. cost-efficient supply chain management, as a central element of this study, is in harmony with the rbv theory's standpoint on the strategic significance of resources. the theory posits that the effective management of resources, including the supply chain, can lead to competitive advantages by reducing costs and augmenting operational efficiency (dubey et al., 2019). efficient supply chain management guarantees the punctual and cost-effective delivery of products and services to the market, directly influencing profitability (akhtar, 2019). the theory asserts that organizations with streamlined and cost-effective supply chain processes are more adept at optimizing resource utilization and establishing enduring competitive advantages. additionally, the rbv theory provides insights into the moderating role of top management support. it recognizes that the approval and active engagement of top management are pivotal for the efficient deployment of resources (kumar, paul, & starčević, 2021; suanda et al., 2023). top management support has the capacity to shape the organization's strategic orientation and the distribution of resources to hrm practices and supply chain initiatives (jayaraman, vejayon, raman, & mostafiz, 2019). consequently, grasping the function of top management support in enhancing the influence of hrm practices and supply chain management on financial performance is in accordance with the rbv theory. thus, the rbv theory furnishes a solid theoretical underpinning for this study. it underscores the crucial role of hrm practices, supply chain management, and top management support as factors determining an organization's competitive advantage and financial success. by embracing this theoretical framework, the study aims to enrich the wider comprehension of how organizations can harness their distinctive resources to ameliorate financial performance and ensure long-term sustainability in the exceedingly competitive business environment of today. 5. research method this study adopted a quantitative research methodology to examine the intricate interconnections among human resource management (hrm) practices, cost-efficient supply chain management, top management support, and their consequences on financial performance within agricultural organizations. data collection occurred from january 1, 2022, to march 30, 2022 (time 1) for hrm practices-related variables, and from june 1, 2022, to august 30, 2022 (time 2) for variables pertaining to supply chain management, top management support, and financial performance. the study aimed to survey participants from diverse organizations spanning various sectors. to attain a balanced participant distribution across different age groups, quota-based sampling using age as the quota criterion was utilized. initially, organizations were randomly chosen from both public and private sectors. subsequently, employees from these selected organizations were randomly sampled to partake in the survey, ensuring a varied and representative sample of the workforce. structured questionnaires were used to collect data at both time 1 and time 2. the questionnaires were meticulously crafted to gauge hrm practices, supply chain management efficiency, top management support, and financial performance. respondents were furnished with precise and succinct instructions, and their responses were assured complete confidentiality. the study followed a timelagged approach, incorporating an interval of around two months between the two data collection stages. this approach enabled the investigation of the temporal sequence of relationships. it helped assess how changes in hrm practices at time 1 were associated with subsequent variations in supply chain management efficiency and top management support at time 2. it also explored how these variations influenced financial performance, considering the influence of top management support. the time-lagged design facilitated the examination of causal relationships across temporal intervals. a total of 410 complete responses were amassed at both time 1 and time 2, yielding a response rate of 62.9%. the study rigorously adhered to ethical standards, necessitating informed consent from all participants. furthermore, the protection of respondents' data confidentiality and security was of paramount concern. ethical clearance for the research was duly acquired from the author's institutional review board. 5.1 demographic characteristics between november 2022 and march 2023, the research gathered demographic data on the participants. male respondents comprised roughly 68% of the sample, while female respondents constituted about 32%. participants were distributed across various age groups, with 25% agbioforum, 25(1), 2023 | 247 cen — maximizing business success: the influence of human resource management practices … falling within the 20-30 age bracket, 25% in the 31-40 age group, 25% in the 41-50 age group, and 25% aged 51 and above. approximately 15% of the participants had a high school education or lower, 50% held a bachelor's degree, and 35% possessed a master's degree or higher. work experience among participants varied, with about 25% having 1-5 years of experience, roughly 45% having 6-15 years, and the remaining 30% having over 15 years of experience in the agricultural sector. the sample encompassed a range of positions within agricultural organizations, with approximately 40% being farmers or fieldworkers, around 25% occupying managerial roles, and the remaining 35% engaged in support or technical positions. participants were geographically dispersed across different regions in indonesia, comprising roughly 20% from java, 30% from sumatra, 25% from sulawesi, and 25% from other regions. 5.2 measures of study to evaluate talent management practices, we utilized a scale developed by ogbeibu et al. (2022), comprising 10 items, enabling the assessment of talent acquisition, development, and retention strategies within the organization. to investigate the impacts of recruitment, we employed an 8-item scale derived from items found in fadda, marinò, pischedda, and ezza (2022) and köchling and wehner (2020) was utilized, allowing us to assess the efficiency and effectiveness of recruitment processes and strategies. to measure training and workforce development, we employed scales from kwon (2019) comprising 8 items. these scales facilitated the evaluation of training program effectiveness, employee skill development, and opportunities for career advancement within the workforce. additionally, our examination of the impact of cost-efficient supply chain management was conducted using a comprehensive 17-item scale from bimha, hoque, and munapo (2020) and irfan, sumbal, khurshid, and chan (2022). this scale encompassed various dimensions of supply chain performance, encompassing cost efficiency, reliability, and responsiveness. finally, we assessed top management support through a 12-item scale, derived from the research of collins (2021). this scale allowed us to measure the extent of top management support and their involvement in supply chain decision-making and strategic initiatives within the organization. 6. results descriptive statistics were utilized as an initial step to gain a thorough understanding of the dataset. this analysis involved the computation of means, standard deviations, and frequencies, which encapsulated the participants' responses. these statistical measures provided a snapshot of the central tendencies and variances within the variables under investigation. the key statistical values for the primary constructs examined in this study are presented in table 1. mean values, in particular, offered insights into the central tendency of participant responses. higher means indicated a more positive perception or a more prominent presence of the respective construct, consistent with prior research (noor, mansoor, & shamim, 2022; shmueli et al., 2019). we also provide the values for average variance extracted (ave), composite reliability (cr), and construct validity (ca). the 'talent management' construct exhibited a mean score of 4.11, with a standard deviation of 0.80. the average variance extracted (ave) for this construct was 0.56, signifying that 56% of the variance in the observed variables was attributable to the underlying latent construct. additionally, the composite reliability (cr) for talent management was 0.90, demonstrating the internal consistency and reliability of the measurement items. the construct validity (ca) for this construct was 0.83, substantiating the validity of the construct. in a similar vein, the 'recruitment' construct exhibited a mean score of 3.90, with a standard deviation of 0.89. the ave for recruitment was relatively higher at 0.68, suggesting that 68% of the variance in the measured items was attributable to the underlying construct. the composite reliability (cr) for recruitment was 0.89, demonstrating high internal consistency, while the construct validity (ca) was 0.86, affirming the construct's validity. the 'training and workforce development' construct presented a mean score of 4.08, with a standard deviation of 0.95. however, it exhibited a relatively lower ave of 0.53, indicating that 53% of the variance was explained by the latent construct. the composite reliability (cr) for this construct was 0.84, denoting good internal consistency, and the construct validity (ca) was 0.80, confirming the construct's validity. the 'cost-efficient supply chain management' construct yielded a mean score of 4.21 and a standard deviation of 1.02. the ave for this construct was 0.55, representing 55% of the variance explained by the latent construct. the composite reliability (cr) was 0.81, indicating satisfactory internal consistency, and the construct validity (ca) was 0.79, supporting the construct's validity. for "financial performance," the mean score was 3.98, with a higher standard deviation of 1.23. the ave for this construct was 0.60, suggesting that 60% of the variance in the measured items was attributed to the underlying construct. the composite reliability (cr) was notably high at 0.92, reflecting strong internal consistency, and the construct validity (ca) was 0.86, affirming the construct's validity. lastly, the construct "top management support" exhibited a mean score of 3.86 and a standard deviation of 1.09. the ave for this construct was 0.62, indicating that 62% of the variance in the observed variables was accounted for by the latent construct. the composite reliability (cr) for top management support was 0.85, signifying good internal consistency, and the construct validity (ca) was 0.80, confirming the construct's validity. these statistical parameters provide a comprehensive assessment of the reliability and validity of the measurement instruments used for each construct in our study, offering a foundation for the subsequent analysis of the relationships and hypotheses under investigation. agbioforum, 25(1), 2023 | 248 cen — maximizing business success: the influence of human resource management practices … table 1. mean, std, reliability, and validity of the study constructs construct mean std ave cr ca talent management 4.11 0.80 0.56 0.90 0.83 recruitment 3.90 0.89 0.68 0.89 0.86 training and workforce development 4.08 0.95 0.53 0.84 0.80 cost-efficient supply chain management 4.21 1.02 0.55 0.81 0.79 financial performance 3.98 1.23 0.60 0.92 0.86 top management support 3.86 1.09 0.62 0.85 0.80 6.1 correlation analysis table 2 presents the interrelationships among the principal constructs examined in the research. within the matrix, each entry denotes the pearson correlation coefficient quantifying the associations between the respective constructs. the correlation coefficient between talent management and recruitment stood at 0.590, denoting a moderate and positive correlation between these constructs. this observation implies that organizations with robust talent management practices tend to concurrently exhibit more effective recruitment processes. similarly, the correlation between talent management and training and workforce development was computed at 0.423, reflecting a positive linkage between these constructs. this finding suggests that organizations that prioritize talent management are inclined to allocate resources to the enhancement of their workforce through training and development initiatives. the correlation between talent management and costefficient supply chain management was determined to be 0.411, revealing a favourable and positive relationship. this suggests that organizations that prioritize talent management are also likely to exhibit effective management of their supply chain operations. additionally, a positive correlation of 0.501 was observed between talent management and financial performance, signifying that organizations with robust talent management practices tend to attain superior financial performance outcomes. top management support exhibited notably strong correlations with all the constructs, underscoring its pivotal role as a critical determinant in organizational performance. as an illustration, the correlation coefficient between top management support and talent management was calculated at 0.622, emphasizing the considerable influence exerted by top management in endorsing and supporting talent-related initiatives. the correlation between top management support and recruitment was determined to be 0.489, signifying that a high level of top management support is positively associated with effective recruitment practices. in a similar vein, the correlation between top management support and training and workforce development yielded a coefficient of 0.398, indicating that robust top management support contributes to the success of employee training and development initiatives. furthermore, the correlation between top management support and cost-efficient supply chain management was calculated at 0.542, suggesting that organizations benefiting from strong top management support tend to excel in supply chain management. lastly, the correlation between top management support and financial performance showed a coefficient of 0.477, implying that top management support plays a pivotal role in driving financial success within organizations. the correlation matrix presented here serves as a valuable resource for gaining insights into the interrelationships among the constructs under investigation in this study. it establishes a fundamental basis for further analysis, enabling a deeper understanding of the intricate dynamics that exist between these variables. table 2. correlation analysis constructs 1 2 3 4 5 6 talent management 1.000 recruitment 0.590 1.000 training and workforce development 0.423 0.521 1.000 cost-efficient supply chain management 0.411 0.370 0.467 1.000 financial performance 0.501 0.437 0.400 0.576 1.000 top management support 0.622 0.489 0.398 0.542 0.477 1.000 6.2 vif and tolerance multicollinearity among predictor variables in regression analysis can distort the reliability of the results. to evaluate multicollinearity, we calculated the variance inflation factor (vif) and tolerance values. the vif provides an indication of how much each independent variable can be predicted by the other variables in the model (mansoor & paul, 2022). tolerance, which is the reciprocal of vif and indicates the proportion of a variable's variance not accounted for by other independent variables, revealed values ranging from 0.42 to 0.85. simultaneously, vif values, varying between 1.18 and 2.41, offer insights into the extent to which each independent variable can be predicted by others within the model. these results collectively indicate a presence of low to moderate multicollinearity among the predictor variables. while some degree of multicollinearity exists, it does not reach a level of excessiveness. consequently, our regression analysis results remain reliable and interpretable, as multicollinearity did not significantly undermine the model's accuracy. 6.3 model fit indices we also assessed the goodness of fit for the structural equation model using several model fit indices, which provide valuable insights into the overall model fit. these indices help determine how well the proposed model aligns with the observed data (hair jr et al., 2021; noor, mansoor, & rabbani, 2022). the chi-square (χ²) value was found to be 245.67 with degrees of freedom (df) equal to 117. while the chi-square test is widely used in model fit assessment, it is sensitive to sample size, and the p-value associated with this chi-square statistic was statistically significant (p < 0.05). the root mean square error of approximation (rmsea), a commonly used measure of model fit, was calculated at 0.079, indicating a certain level of discrepancy between the model and the observed data. the rmsea value can vary from 0 to 1, with lower values signifying a better fit between the model and the data. in this instance, the rmsea value suggests a reasonably good fit, although it also suggests that the model may not perfectly capture the data. the comparative fit index (cfi), which measures the improvement in model fit compared to a null model, returned a value of 0.91. a cfi agbioforum, 25(1), 2023 | 249 cen — maximizing business success: the influence of human resource management practices … value approaching 1 indicates a strong fit, and in our study, this value implies a reasonably good fit of the model to the data. the tucker-lewis index (tli) returned a value of 0.90, suggesting an acceptable model fit. the standardized root mean square residual (srmr), which measures the average difference between observed and predicted correlations, yielded a value of 0.077. in summary, the model fit indices collectively provide valuable insights into the alignment of our model with the empirical data. it's important to note that no model is expected to perfectly capture the intricacies of real-world phenomena, but these indices suggest a reasonably good fit for our analysis. 6.4 hypothesis testing the regression analysis conducted using spss version 25 demonstrated significant relationships between green hrm practices and various key outcomes. table 3 displays the results of the regression analysis conducted in our study, which aimed to investigate the hypothesized relationships between the key constructs. the table includes information about the hypotheses (h1a, h1b, etc.), the predictor variables, beta (β) coefficients, tvalues, p-values, and whether the results support the hypotheses. hypothesis h1a examined the relationship between talent management (tm) and financial performance (fp). the beta coefficient (β) was 0.210, the t-value was 3.231, and the p-value was 0.003, indicating a positive and statistically significant association between talent management and financial performance. thus, h1a received support. similarly, h1b focused on the association between recruitment (rec) and financial performance (fp). the analysis revealed a positive and significant relationship with a β of 0.257, a t-value of 3.990, and a p-value of 0.001, supporting h1b. for h1c, the hypothesis investigated the link between training and workforce development (twd) and financial performance (fp). the results indicated a strong positive association with a β of 0.391, a t-value of 6.134, and a highly significant p-value of <0.001, providing robust support for h1c. moving to h2a, the focus shifted to the relationship between talent management (tm) and cost-efficient supply chain management (cescm). the analysis yielded a β of 0.349, a t-value of 5.412, and a p-value of <0.001, indicating a positive and statistically significant association, thus supporting h2a. h2b explored the connection between recruitment (rec) and costefficient supply chain management (cescm). the results demonstrated a positive and significant relationship with a β of 0.230, a t-value of 3.521, and a p-value of 0.003, supporting h2b. likewise, h2c investigated the association between training and workforce development (twd) and cost-efficient supply chain management (cescm). the analysis revealed a positive and significant relationship with a β of 0.255, a t-value of 4.450, and a p-value of <0.001, supporting h2c. hypothesis h3 focused on the link between cost-efficient supply chain management (cescm) and financial performance (fp). the results showed a strong positive association with a β of 0.389, a t-value of 6.342, and a highly significant p-value of <0.001, supporting h3. hypotheses h4a, h4b, and h4c delved into the indirect effects of talent management (tm), recruitment (rec), and training and workforce development (twd) on financial performance (fp) through their influence on cost-efficient supply chain management (cescm). the results indicated significant indirect effects with respective beta (β) values, t-values, and p-values, supporting all three hypotheses. finally, h5 explored the interaction effect between talent management support (tms) and costefficient supply chain management (cescm) in relation to financial performance (fp). the analysis revealed a significant positive interaction effect with a β of 0.189, a tvalue of 2.870, and a p-value of 0.007, providing empirical support for h5. the results of the regression analysis presented in table 3 offer empirical support for the proposed relationships between talent management, recruitment, training, workforce development, costefficient supply chain management, and financial performance in our study. these findings emphasize the significance of these factors in influencing the financial performance of organizations. table 3. regression results hyp. hypothesis beta (β) t-value p-value support h1a tm → fp 0.210 3.231 0.003 yes h1b rec → fp 0.257 3.990 0.001 yes h1c twd→ fp 0.391 6.134 <0.001 yes h2a tm → cescm 0.349 5.412 <0.001 yes h2b rec → cescm 0.230 3.521 0.003 yes h2c twd→ cescm 0.255 4.450 <0.001 yes h3 cescm → fp 0.389 6.342 <0.001 yes h4a tm → cescm → fp 0.190 2.965 0.005 yes h4b rec → cescm → fp 0.270 4.789 <0.001 yes h4c twd→ cescm → fp 0.412 7.023 <0.001 yes h5 tms*cescm → fp 0.189 2.870 0.007 yes tm= talent management; rec= recruitment; twd= training and workforce development; cescm=cost-efficient supply chain management; tms=top management support; fp=financial performance 7. findings the results of the analysis indicated that human resource management (hrm) practices, encompassing talent management, recruitment, training, and workforce development, play a substantial role in influencing the efficiency of supply chain management within agricultural organizations. specifically, employees who underwent training and skill development exhibited an enhanced capacity to optimize various aspects of the supply chain, resulting in improved logistics, decreased error rates, and reduced operational costs. this discovery is consistent with previous research, which has demonstrated that investments in employee development have a positive impact on enhancing supply chain efficiency (hongal & kinange, 2020). an improvement in the proficiency of the workforce resulting from talent management, recruitment, training, and development was expected to enhance their ability to optimize supply chain processes. this expected linkage is logically grounded, as employees with enhanced skills and knowledge are likely to lead to smoother logistics, fewer errors, and increased supply chain efficiency. previous research has consistently shown that investments in employee development are associated with agbioforum, 25(1), 2023 | 250 cen — maximizing business success: the influence of human resource management practices … improved supply chain performance, reinforcing the idea that a skilled workforce contributes to cost-efficient supply chain management (ogbeibu et al., 2022). cost-efficient supply chain management significantly influenced the financial performance of agricultural sector organizations. streamlined supply chain processes led to cost savings, better inventory management, improved production efficiency, and reduced transportation expenses, directly impacting profitability. this validates the established connection between supply chain efficiency and financial performance, as confirmed by previous research (bimha, hoque, & munapo, 2020; mihrani et al., 2023). efficient supply chain management results in cost savings, better financial performance, and enhanced competitiveness. this is based on the established correlation between supply chain efficiency and financial outcomes (solekah, 2020). the mediation hypothesis postulated a sequential series of relationships, proposing that hrm practices would influence an organization's financial performance through cost-efficient supply chain management. the findings validate these hypothesized connections, indicating that hrm practices enhance workforce capabilities to optimize supply chain processes, resulting in cost savings through improved operational efficiency, better inventory management, and reduced transportation expenses. these accrued cost savings subsequently lead to higher profitability and improved financial performance. this progression highlights the cumulative and cascading effect of hrm practices on financial outcomes mediated by costefficient supply chain management. the study revealed that top management support plays a significant moderating role in the association between cost-efficient supply chain management and financial performance. specifically, when top management actively supported and allocated resources for supply chain initiatives, it enhanced decision-making, resource allocation, and the elimination of organizational obstacles. this support effectively aligned supply chain strategies with the overarching organizational objectives. prior research has consistently underscored the pivotal role of top management in steering and facilitating effective supply chain management, ultimately contributing to enhanced financial performance (golob, davies, kernstock, & powell, 2020). when supply chain management aligns with the vision and resources provided by top management, it results in a more efficient and costeffective supply chain. consequently, this positively impacts the organization's financial performance. this moderating effect underscores the essential role of top management in optimizing the relationship between supply chain management and financial outcomes. 8. conclusion the findings of this research hold substantial theoretical implications for the domains of human resource management (hrm), supply chain management (scm), and organizational performance. these implications serve to advance our comprehension of the intricate dynamics within agricultural sector organizations in indonesia and further enrich our knowledge in these respective fields. the study underscores the intrinsic connection between hrm practices and cost-efficient supply chain management. the findings emphasize the necessity for a more comprehensive integration of hrm and scm theories. within the context of agricultural organizations, hrm practices are demonstrated to be instrumental in equipping the workforce with the skills and knowledge needed to enhance supply chain processes. this integration can provide a foundation for future research that investigates the synergies between these two domains, potentially leading to the development of a more comprehensive and context-specific theoretical framework. the moderating role of top management support in influencing the relationship between costefficient supply chain management and financial performance underscores the significance of leadership within organizations. this finding extends existing theories on the role of top management in the strategic management of supply chains. theoretical frameworks in scm can benefit from further exploration of how top management can facilitate or impede the efficient operation of supply chains and their impact on financial outcomes. the research supports the notion that the link between hrm practices, cost-efficient supply chain management, and financial performance is not isolated but cumulative. this suggests that the impact of hrm practices on financial performance is mediated by their effect on supply chain efficiency. this necessitates a shift in perspective within hrm theory to consider the broader operational implications of hrm practices in the context of scm. 9. contributions and implications the practical implications of this research are highly significant for agricultural sector organizations in indonesia, offering valuable insights to enhance their performance and competitiveness. the study underscores the strategic alignment required between hrm practices and supply chain management strategies. organizations should perceive hrm as a strategic partner in optimizing supply chain processes. by investing in talent management, recruitment, training, and workforce development tailored to supply chain skills, organizations can achieve cost-efficient supply chain management and improved financial performance. the practical implications stress a renewed focus on employee development, serving as a catalyst for supply chain efficiency. emphasis should be on training and skill development that directly contributes to enhanced supply chain practices, simultaneously enhancing employee capabilities and supporting the organization's supply chain objectives. this investment not only enhances employee capabilities but also supports the organization's supply chain objectives. the research highlights the pivotal role of top management in optimizing supply chain management. organizations should prioritize creating a supportive environment where top management actively endorses and allocates resources for supply chain initiatives, enabling decision-making and removing organizational obstacles. to bolster financial performance, agbioforum, 25(1), 2023 | 251 cen — maximizing business success: the influence of human resource management practices … agricultural organizations should foster a culture of continuous improvement and innovation within supply chain operations. this can be achieved by encouraging employees to seek novel ways to optimize processes and reduce costs, while promoting proactive problem-solving and efficiency. organizations can also gain from knowledge-sharing and learning mechanisms that facilitate the exchange of best practices in hrm and scm, enhancing employee skills, knowledge, and fostering a culture of innovation and improvement. 10. future research work subsequent research endeavours may delve into these dynamics in sectors outside of agriculture. additionally, there is an opportunity to investigate the influence of emerging technologies, such as artificial intelligence, block chain, and the internet of things (iot), on the interplay between hrm practices, supply chain management, and financial performance within the agricultural sector. research can scrutinize how these technologies impact efficiency, traceability, and transparency within supply chains, and how hrm strategies can evolve to harness these technological advancements. 11. limitations the study featured a specific sample of agricultural organizations in indonesia, potentially constraining the generalizability of the findings. a more extensive and diversified sample could enhance the study's external validity. participants self-reported their experiences, possibly introducing response bias. subsequent research might benefit from supplementary data sources, such as supply chain performance metrics, to corroborate the findings. the findings are firmly rooted in the distinctive cultural and contextual elements of the agricultural sector in indonesia. it is imperative to acknowledge that these findings may not hold universal applicability and could vary in other geographical and cultural settings. the study was conducted within a finite timeframe. a longitudinal investigation could provide insights into the evolution of the linkages between hrm practices, supply chain management, and financial performance over time. simultaneously, comparative analysis of the findings across various industries could yield a comprehensive understanding of the universal and industryspecific facets of these linkages. references adivar, b., hüseyinoğlu, i. ö. y., & christopher, m. 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uitm cawangan selangor, kampus puncak alam, selangor, malaysia email: veera692@uitm.edu.my this study explores the intricate dynamics of date palm farming and sustainable supply chain initiatives in saudi arabia. through the assessment of stakeholder perspectives and their effect on industry practices, this study aims to examine how technological integration, supply chain efficiency, and economic considerations affect sustainable cultivation practices. for this qualitative study, fourteen semi-structured interviews including industry experts, supply chain managers, and farmers were undertaken. using a three-step coding approach, thematic analysis found and classed significant subjects on supply chain efficiency, economic consequences, and sustainable practices. digital management systems and precision agriculture have immense potential, but research demonstrates that industry adoption varies. stakeholders acknowledge the importance of modernisation, despite their strong cultural attachment to traditional practices. profiting is tough due to economic factors like fluctuating markets and rising input costs, yet value-added products can enhance profits. infrastructure issues and poor supply networks keep the business floundering. this study sheds light on date palm cultivation's combination of technology and traditional practices, emphasizing the necessity for targeted support and infrastructure. the findings can help governments and industry leaders improve date palm sustainability and efficiency for long-term growth and resilience. keywords: dates palm, cultivation, sustainable supply chain practices, technological integration, economic considerations. 1. introduction even in the current fast-growing world the arid locations, especially the middle east and north africa, have long grown date palms. date palms are important for regional economies, food security, and environmental sustainability beyond their cultural and nutritional importance (hamriri et al., 2024). sustainable date palm agriculture is a key research field as climate change intensifies and agricultural methods alter (pandey et al., 2024). scholars are actively studying how traditional practices might be adapted to modern agriculture's water constraint, soil degradation, and biodiversity loss (arkeman et al., 2024). date palm planting has long been linked to local ecological and cultural activities, making it a good place to study sustainable agriculture (junaidi et al., 2024). organic farming, water conservation, and natural fertilisers strengthen date palms and lessen environmental effect. date palm trees are drought-resistant and beneficial in desert and semi-arid environments (chu & pham, 2024). sustainability concerns have arisen as traditional farming methods are replaced by intensive ones (dhakal et al., 2024). in many areas, chemical fertilisers, pesticides, and excessive irrigation have degraded the environment and lowered soil fertility (tang et al., 2024). dates, a staple food with considerable export potential, boost producing countries' economies. due to health awareness and nutritional value, date demand has grown worldwide (pereira, 2024). this tendency has led to more effective supply chain management to reduce post-harvest losses, improve storage and transportation, and ensure quality. thus, degli innocenti (2024) has broadened to encompass date palm supply chain efficiency and farming techniques. technological integration in date palm cultivation and supply chain management is another promising study field (hariyanti & syahza, 2024). precision farming, blockchain, and the iot are explored to boost the supply chain in terms of productivity, traceability, and transparency. it is expected that these types of technologies will contribute to solving some of the issues related to date palm cultivation, particularly those dealing with water constraints and insect management (chatha et al., 2024). especially in areas with strong traditional customs, these technologies are hardly embraced. empirical studies have shown that the sustainability, economic viability, and technical adoption of supply chain activities pertaining to date palm production are a complex function of interacting variables (yamoah & kaba, 2024). organic farming is clearly relevant for date palm production based on several studies. for example, cricelli et al. (2024) found that organic fertilisers raised date palm quality and production as well as soil fertility. for longterm survival, the study underlined the need of balancing conventional knowledge with contemporary farming methods. given the crop requires a lot of water, several studies have looked at the efficiency of irrigation mailto:%20mbhatti@kfu.edu.sa mailto:veera692@uitm.edu.my agbioforum, 26(1), 2024 | 33 bhatti & sundram — dates palm cultivation and sustainable supply chain practices in saudi arabia technology (sarker et al., 2024) crucial are data on date palm water management. according to parthasarathy et al. (2024), drip irrigation methods lowered water use and raised yields when compared to flood irrigation. in places with limited water, modern irrigation systems can increase water use efficiency a vital need. research has also looked at how sustainability of date palm farming is affected by water-saving technologies such rainwater collecting and treated wastewater (mendel et al., 2024). empirical study has revealed different problems in supply chain efficiency. many studies have pointed out that the post-harvest losses of the date palm are a major problem, at least in underdeveloped countries where infrastructure and storages are not good (rajakal et al., 2024). hiloidhari et al. (2023) discovered that strengthening cold storage and transportation facilities might cut post-harvest losses by 30%, making date palm cultivation more profitable. technology in supply chain management improves traceability and reduces fraud, which is crucial for export quality requirements (soomro et al., 2023). date palm farming technology integration has been the focus of recent empirical research. precision agriculture uses remote sensing and drones to optimise resource utilisation and productivity (castillo et al., 2023). drones can monitor crop health and detect pest infestations early, reducing the need for chemical interventions, according to (cruz et al., 2023). blockchain technology has also been considered for supply chain management to improve transparency and stakeholder trust. gharye mirzaei et al. (2023) showed that blockchain could monitor dates from farm to market, eliminating fraud and ensuring international quality standards. while date palm farming and supply chain techniques have been extensively studied, numerous gaps exist (sporchia et al., 2023). the socioeconomic effects of sustainable cultivation practices are understudied. many studies have explored the environmental benefits of organic farming and water-saving measures, but few have examined how they effect farmers, particularly smallholders (grass ramírez et al., 2023). although organic farming can improve soil quality and productivity, it can also be costly and labourintensive, which would impede farmers with little resources (khan et al., 2023). date palm farming's gender relations are hardly researched. studies on supply chain management and agriculture have mostly concentrated on technical aspects and have not given women much attention (burezq & davidson, 2023). women are absolutely essential for the agricultural sector, particularly in value addition and post-harvest processing, hence this is a serious error (beguedou et al., 2023). future research should aim to address this gap by examining how technical advancements and sustainable cultivation practices affect gender roles and labour dynamics in the date palm industry (mulyasari et al., 2023). technical adoption in supply chain management and date palm farming reveals several uncharted territory. although blockchain and precision farming show potential, not much is known about their acceptance challenges (foong et al., 2023). commonly seen but rarely investigated include the great cost of technology, lack of technical knowledge, and farmer hostility to change (rosdin et al., 2023). besides, not much is known about small-scale farmers who might be resourcepoor. this, therefore, calls for more research into socioeconomic and cultural factors driving the acceptance of date palm technologies (akhtar et al., 2023). while some of their environmental advantages are negated, drones and remote sensing tools may increase energy use and electrical waste (lubis et al., 2023). future studies should assess how date palm farming technologies affect the surroundings and identify ways to minimise them (heldt & beske-janssen, 2023). this work relies on a theoretical base comprised of theories of technological innovation, supply chain management, and the sustainable approaches to agriculture. sustainable cultivation practices can be a strategic resource for competitive advantage, according to the resource-based view (rbv) paradigm (abid & ammar, 2022). value, rare, inimitable, and nonsubstitutable (vrin) resources, rbv claims, can help to retain competitive advantage (abid & ammar, 2022). the adoption of water management and organic farming within the vrin resources enables the profitability and sustainability of the date palm cultivation. the study mostly borrows from institutional theory in trying to understand the diffusion of acceptance of sustainable technologies. this paper discusses some of the sustainable farming practices adopted in date palm cultivation and how these contributions add value to the economic viability, efficiency of supply chains, and profitability of date palm farming. it further looks at how technological integration increases the sustainability and profitability thereof. the present study attempts to fill this literature gap through assessing socioeconomic outcomes of sustainable practices, gendered nature of date palm farming, and the barriers to technological adoption. the present study, therefore, embarks on perceiving the aspects of date palm sector sustainability and shall put forward implementable recommendations for improving the production and supply chain practices by combining these theoretical viewpoints. 2. literature review date palm output is growing in relevance in sustainable agriculture given their long history in middle eastern and north african agriculture (zahraee et al., 2022). the research on date palm farming emphasises its capacity to flourish in arid environments, so it is a necessary crop in nations with limited water supply (zahraee et al., 2022). various agronomical practices recommended in the literature are useful in date palm cultivation. modern drip irrigation and other irrigation technologies work effectively for sustainable utilisation of water. these techniques enhance agriculture's output and quality and agbioforum, 26(1), 2024 | 34 bhatti & sundram — dates palm cultivation and sustainable supply chain practices in saudi arabia conserve water simultaneously (nupueng et al., 2022). furthermore, under research for environmentally sustainable date palm production are organic fertilisers and insect control techniques limiting chemical inputs. furthermore stressed is the need of combining modern technologies with traditional agricultural expertise (nupueng et al., 2022). this enables the development of a farming system more resistant to climatic change. from planting to market exit, sustainable date palm supply chains include the whole product lifetimes (nupueng et al., 2022). because supply chain management helps to lower environmental impact and boost economic advantages, it is under great research. developing environmentally friendly packaging and lowering carbon emissions by means of effective transportation constitute this aim (nupueng et al., 2022). maintaining the quality and safety of produced goods, a requirement expressed by consumers worldwide, depends also on traceability systems (nupueng et al., 2022). fair trade and local farmer empowerment which enhance supply chain social sustainability also appear in scholarly literature. in the date palm company, sustainable supply chain methods help to increase social, financial, and environmental sustainability (abdallah et al., 2022). these techniques strike a compromise between customers' needs, farmers' rights, and others'. 2.1 sustainable cultivation practices given saudi arabia's limited resources and arid climate, sustainable date palm growing methods have attracted a lot of interest in the nation (abdallah et al., 2022). the literature claims that as date palms are a crop needing a lot of water, water management is absolutely crucial. particularly drip irrigation, advanced irrigation methods are much sought for their capacity to sustainably lower water use without compromising agricultural yields (abdallah et al., 2022). according to a recent study, drip irrigation systems when correctly maintained may save 60% of the irrigation-needed water when compared to conventional flooding techniques (sakai et al., 2022). furthermore, there is evidence that utilising organic farming methods that is, compost and organic fertilizers may increase soil fertility and promote better development of dates palm (foong & ng, 2022). the implementation of sustainable methods that lower the demand for chemical inputs and support the long-term soil sustainability will determine the fate of date palm farming in the area (latino et al., 2022). effective control of pests and illnesses is absolutely crucial for sustainable development of saudi arabia. much debate in the literature surrounds integrated pest management (ipm) techniques, which mix limited chemical inclusion with biological control strategies (hamriri et al., 2024). natural predators and pheromone traps have been demonstrated to be beneficial in controlling pests including the red palm weevil, therefore lowering agricultural losses without compromising the ecology (hamriri et al., 2024). furthermore well accepted is the protection and spread of traditional agricultural knowledge passed down through generations as a vital component of sustainable food production (chu & pham, 2024). combining this knowledge with modern scientific techniques generates an agricultural system more robust and flexible. studies on the topic mostly aim to identify a middle ground whereby date palm farming in saudi arabia can remain economic and successful without endangering the environment (tang et al., 2024). 2.2 supply chain effici6ency supply chain efficiency is a top priority for the saudi date palm industry (degli innocenti, 2024). from farm to market, this sector wants to lower waste and raise product value. date perishable is a supply chain problem according to scientific study (chatha et al., 2024). this calls for efficient standards of transportation, storage, and date handling. according to scientific research, date quality and shelf life depend critically on cold chain logistics storing and moving dates in a cool environment (chatha et al., 2024). these methods guarantee that fruit is in best condition when it reaches consumers, therefore reducing supply chain post-harvest losses. modern packaging methods like modified atmosphere packaging (map) could increase commercial competitiveness and date lifetime (parthasarathy et al., 2024). this is particularly crucial in foreign markets where visits could span longer periods. academic research underlines supply chain integration and cooperation among several players, including wholesalers and farmers (rajakal et al., 2024). good supply networks need great cooperation and communication. these two features help to match output to market demand, hence reducing waste and overgeneration (rajakal et al., 2024). saudi arabia recognises the need to increase supply chain efficiency by utilising digital technologies. blockchain for traceability, iot for real-time monitoring, and data analytics for demand forecasting help to maximise operations, save money, and enhance supply chain performance (rajakal et al., 2024). as customers grow more worried about food sources and handling, these technologies enhance supply chain transparency and efficiency and help to develop customer confidence (rajakal et al., 2024). 2.3 economic impact the economy of saudi arabia and the welfare of rural areas depend much on date palm farming and its distribution (khan et al., 2023). academic research highlights the date palm industry as a significant agricultural sector providing employment for many people, particularly in rural areas with limited economic alternatives (beguedou et al., 2023). saudi arabia depends on date exports for income since it is the biggest exporter and producer of dates worldwide (foong et al., 2023). dates' health advantages and natural and organic food appeal are driving increasing demand for them internationally, therefore enhancing their economic value (foong et al., 2023). scholarly studies suggest that agbioforum, 26(1), 2024 | 35 bhatti & sundram — dates palm cultivation and sustainable supply chain practices in saudi arabia date syrup, paste, and snacks increase profitability and create fresh national economic possibilities (heldt & beske-janssen, 2023). furthermore becoming financially feasible is environmentally friendly date palm farming. sustainable farming has long-term financial advantages since lower water and chemical inputs (almutawa, 2022). improving agricultural infrastructure and output with these savings will boost economic gains by means of enhanced production (almutawa, 2022). the literature also emphasises how sustainable date palm farming can draw funding and investment, mostly from overseas companies and investors engaged in sustainable agriculture. funding can strengthen date palm, agro-processing, transportation, and tourism sectors (almutawa, 2022). given these factors, saudi arabia's date palm industry has different effects on the national income and sustainable development as well as on the state of the economy (almutawa, 2022). 2.4 technological integration improving saudi arabia's date palm output and supply chain management calls on technological integration (abdallah et al., 2022). academic publications highlight farmers' use of technology to monitor and manage their date palm farms more precisely. among these technologies are remote sensing, gis, and other ones (sakai et al., 2022). these technologies offer focused treatments meant to increase resource economy and agricultural productivity. these instruments offer essential information about soil, moisture, and insects (latino et al., 2022). remote sensing points up grove locations under water stress. farmers can so save water and enhance irrigation. disease and pest outbreaks can also be tracked using geographic information systems (gis), so allowing quick and exact treatment and so lowering chemical inputs (pandey et al., 2024). these technologies are needed to modernise date palm cultivation and increase its sustainability in response to resource limits and climate change (junaidi et al., 2024). the use of digital technologies to improve date palm supply chain efficiency and transparency is highlighted in academic publications (dhakal et al., 2024). this role complements the engagement of agricultural technologies in transformation. blockchain technology can, for example, increase traceability. this approach would let users confirm their dates (pereira, 2024). in worldwide markets where food authenticity and safety are of great importance, this is absolutely vital. sensors of the internet of things allow real-time storage monitoring. this guards dates both during storage and transit (hariyanti & syahza, 2024). demand prediction and inventory control among other supply chain activities are being enhanced by data analytics and artificial intelligence. by reducing waste and resource consumption, these solutions enable sustainable practices and help to increase operational efficiency (yamoah & kaba, 2024). many agree that technology integration in supply chain activities and farming determines the profitability and competitiveness of the saudi date palm sector (yamoah & kaba, 2024). 2.5 stakeholder perceptions stakeholder opinions will determine saudi arabia's sustainable date palm output as well as supply chain management (mendel et al., 2024). the key players in the field, farmers, are reportedly finding more and more advantages from sustainable farming methods including long-term profitability and resource economy (mendel et al., 2024). among the concerns are technical issues with implementing new technology and procedures and upfront expenses. extension groups and government initiatives have to give farmers money and instruction so they may choose more environmentally friendly practices (castillo et al., 2023). rising awareness of climate change and its consequences among farmers is also driving environmental preservation and social responsibility (gharye mirzaei et al., 2023). local sustainability depends on this kind of mental change being promoted. future of saudi arabia's date palm economy relies on customers as vital players. literature indicates that demand exists for sustainable date production. consumer knowledge of ethical and environmental concerns is driving demand (grass ramírez et al., 2023). this shift in consumer tastes is driving manufacturers and supply chain players to use environmentally friendly solutions to satisfy local and worldwide market needs (burezq & davidson, 2023). customers also are starting to equate sustainable dates to better quality and health advantages. since consumers link sustainability to safety and quality of products. to please customers, retailers and exporters give sustainability certifications and traceability systems top priority (mulyasari et al., 2023). these certifications and systems highlight supply chain sustainability. stakeholder viewpoints have to be in line with sustainability if the saudi date palm firm is to grow and compete sustainably (rosdin et al., 2023). 3. methodology the present qualitative research investigates the supply chain efficiency and sustainable cultivation practices of the date palm sector in saudi arabia. given the intricate and profound nature of the topic, a case study design was selected to investigate the factors influencing sustainable practices, economic consequences, and technological incorporation in the organisational context. the case study design is well-suited for providing a contextual framework for real-life events, in order to uncover the perspectives of key stakeholders on date palm farming and supply chain management. a diverse cohort of 14 stakeholders in the date palm industry was deliberately selected for the study. participation was sought from farmers, supply chain supervisors, and industry experts possessing substantial research knowledge. logistics supervisors oversee the transportation and warehousing of dates from the field to agbioforum, 26(1), 2024 | 36 bhatti & sundram — dates palm cultivation and sustainable supply chain practices in saudi arabia the market, while farmers are selected based on their expertise in date palm cultivation and environmental practices. agronomists and economists among other professionals provided more all-encompassing views on the technology and financial sides of the agriculture business. table 1: demographic of interviewees respondent id role experience (years) location educational background specialization 1 farmer 20 al-ahsa high school date palm cultivation 2 supply chain supervisor 15 riyadh bachelor's degree in logistics supply chain optimization 3 industry expert 25 al-ahsa master's degree in agronomy sustainable agricultural practices 4 farmer 12 al-qassim high school organic farming 5 supply chain manager 18 dammam bachelor’s degree in business administration logistics and distribution 6 industry expert 30 makkah ph.d. in agricultural engineering technological integration 7 farmer 10 khobar high school traditional cultivation methods 8 supply chain manager 20 al-ahsa master's degree in supply chain management inventory and logistics 9 industry expert 22 medina bachelor's degree in horticulture crop management 10 farmer 15 al-ahsa high school integrated pest management 11 supply chain manager 17 riyadh bachelor's degree in economics supply chain coordination 12 industry expert 28 jubail master's degree in environmental science sustainable practices 13 farmer 8 al-ahsa high school date palm breeding 14 supply chain manager 12 al-ahsa bachelor's degree in agribusiness supply chain efficiency semi-structured interviews conducted throughout saudi arabia, including areas growing date palms, the semistructured interview approach was used for adaptability in looking at study themes while addressing all significant concerns. the interview guide encompassed sustainable cultivation practices, supply chain efficiency, economic impact, technological integration, and stakeholder views in accordance with the study's objectives. depending on participant availability, each 60–90 minute interview was either in person or by video conference. for analysis, participants agreed to have their interviews audio recorded and transcribed. the interview rules guaranteed that important topics were addressed and let participants express freely and give careful comments. interview data was analysed using three coding techniques—axial, selective, and three-fold. this approach helped one to identify, classify, and understand the salient interview themes table 2: analysis process step description process outcome open coding initial stage where raw data is broken down into discrete parts and concepts. 1. data collection: conducted 14 semi-structured interviews with farmers, supply chain managers, and industry experts. generation of preliminary codes and themes. 2. transcription: transcribed interview recordings verbatim. 3. preliminary coding: identified and labelled initial concepts from the data (e.g., “traditional methods,” “supply chain bottlenecks”). axial coding intermediate stage that involves re-organizing codes into broader categories and identifying relationships. 1. categorization: grouped preliminary codes into broader themes (e.g., “sustainable practices,” “supply chain efficiency”). development of refined themes and sub-themes. 2. theme development: analysed relationships between themes to identify sub-themes and patterns (e.g., relationship between “resource management” and “precision agriculture”). 3. theme refinement: refined categories based on emerging patterns and stakeholder perspectives. selective coding final stage where core themes are integrated to form a comprehensive narrative and to address research questions. 1. integration: synthesized refined themes into core categories (e.g., “technological integration,” “economic impact”). formation of a cohesive analysis narrative. 2. narrative construction: developed detailed narratives that explain how the core categories address the research questions. 3. validation: ensured the coherence and relevance of the categories by cross-referencing with original data and stakeholder input. software for qualitative data analysis let data be accessed and arranged while coding. the last study clarified the sustainability problems of saudi arabia's date palm sector and offered a strong understanding of the research themes. the interview guide addressed all necessary elements of a study theme. the table below illustrates the interview subjects and questions: agbioforum, 26(1), 2024 | 37 bhatti & sundram — dates palm cultivation and sustainable supply chain practices in saudi arabia table 3: interview guideline research theme variables interview questions sustainable cultivation practices farming methods can you describe the methods you use in cultivating date palms? how do these methods contribute to sustainability? organic farming practices what is your experience with organic farming? what are the benefits and challenges of using organic methods? water management how do you manage water resources for date palm cultivation? what strategies do you use to conserve water? supply chain efficiency post-harvest management what challenges do you face in the post-harvest management of dates? how do you ensure the quality of the produce? storage and transportation how are dates stored and transported after harvest? what measures are taken to prevent spoilage and maintain quality? technology in supply chain what role does technology play in your supply chain management? how has it impacted efficiency? economic impact profitability how has the profitability of date palm farming changed over the years? what factors have influenced these changes? market access what are the main markets for your dates? how do you ensure access to these markets? cost of production how do production costs impact your farming practices? how do you manage these costs? technological integration precision agriculture have you implemented precision agriculture techniques? if so, how have they impacted your farming practices? adoption of new technologies what new technologies have you adopted in recent years? what has been the impact on productivity and sustainability? stakeholder perceptions perception of sustainability how do you perceive the concept of sustainability in date palm farming? what practices do you consider most sustainable? challenges and opportunities what are the main challenges you face in adopting sustainable practices? what opportunities do you see for improvement? government and policy influence how do government policies influence your farming practices? what changes would you like to see in these policies? this guideline guided the interviews, covering all pertinent issues and allowing participants to expound on their comments based on their experiences and viewpoints. 4. analysis and findings the detailed description of findings can be seen below in sections. 4.1 sustainable cultivation practices in the date palm industry, stakeholders showed a strong dedication to sustainable cultivation practices in the interviews. the need of agricultural sustainability and environmental integrity underlined by the participants. many farmers preserve soil health and date palm resilience to environmental pressures by using organic farming techniques including natural fertilisers and integrated pest management. though modern agricultural technologies are joining them, sustainable farming depends on traditional techniques usually handed down through generations. water management became essential to sustainable agriculture. the arid climate of saudi arabia necessitates water efficiency. drip irrigation and treated wastewater were suggested as water conservation methods. these technologies have greatly decreased water use and increased date yields. such practises demonstrate the date palm farming community's resilience to climate change and water scarcity. participants also noted the difficulties of going green. many found organic farming and sophisticated irrigation systems expensive, requiring major investment in new technologies and training. these expenses were outweighed by long-term benefits including soil fertility and chemical input reduction. there was also a consensus that government subsidies and technical aid are essential to this shift. another finding showed that communal knowledge-sharing promotes sustainability. many farmers shared effective organic farming, pest control, and water management methods. this collaborative approach has spread excellent farming practices, making agriculture more sustainable. these strategies were also questioned for scalability, especially in larger farms where traditional methods may not work. participants' viewpoints on sustainable cultivation practices are illustrated by the following quotes from the interviews: farmer interviewee 3 since using natural compost for years, my soil has become richer. dates are better and trees are healthier. it takes more labour but pays off." farmers view organic farming as beneficial. the focus on soil health and fruit quality supports sustainability. the farmer's desire to work harder shows a commitment to long-term agricultural viability. the literature shows that organic farming improves soil structure and fertility over time. supply chain manager (interviewee 7) "water is our main concern. we use half the water since switching to drip irrigation. it's a tremendous savings, but we need it to maintain farming." in sustainable cultivation practices, water management is crucial. drip irrigation is a smart reaction to water constraint, showing farmers and supply chain managers' resilience to environmental challenges. this supports research showing that drip irrigation can boost water use efficiency in arid settings. industry expert interviewee 12 we have a long history of adopting natural approaches, but we're now seeing increased interest in agbioforum, 26(1), 2024 | 38 bhatti & sundram — dates palm cultivation and sustainable supply chain practices in saudi arabia merging them with technology. this must be done without sacrificing established techniques' benefits." this expert's insight shows the continual conflict between traditional and new technology. modern agricultural techniques and traditional knowledge must be integrated for sustainability, but careful management is needed to maximise their benefits. the literature emphasises the necessity for balanced approaches that use both traditional and modern methods for sustainable agriculture. figure 1: weightage analysis of sustainable cultivation practices this study supports and expands on prior arid region sustainable farming practices investigations. organic farming practices, such as using natural fertilisers, have been shown to improve soil health and crop production over time. for instance, lubis et al. (2023) found that organic farming increases soil fertility and crop resilience to pests and diseases. this study supports farmers' claims that natural compost and organic farming methods benefit them. water management is another important area where this study agrees with the literature. drip irrigation techniques, noted by the respondents, are commonly used to conserve agricultural water, especially in arid and semiarid countries. abid and ammar (2022) showed that drip irrigation may save 50% more water than regular irrigation without affecting crop output. the supply chain managers and farmers in this study who utilised drip irrigation to solve water constraint agree. sustainable agricultural research has examined the blending of traditional and modern methods. according to zahraee et al. (2022), combining traditional knowledge with modern agricultural practices can create more sustainable and resilient farming systems, especially in locations where traditional methods are well-adapted to local environmental conditions. table 4: thematic analysis of sustainable cultivation practices step description codes/themes open coding initial categorization of raw data into basic concepts. traditional methods, organic practices, resource management, soil conservation, pest control axial coding grouping related codes into broader themes and identifying relationships. traditional vs. modern practices, effectiveness of organic methods, resource optimization, soil and pest management strategies selective coding integration and synthesis of themes to form comprehensive categories. sustainable practices: integration of traditional and modern methods, optimal resource use, effective soil and pest management 4.2 supply chain efficiency the date palm supply chain efficiency interviews revealed a complex connection between conventional customs, logistical challenges, and the increasing use of technology. from harvest to sale, participants underlined the need of a good supply chain in date quality. from the farm to consumers, dates are picked, gathered, sorted, packed, stored, and transported. supply chain efficiency and profitability may be impacted at each level by specific problems. participants pointed out the dearth of modern storage facilities, which usually results in post-harvest losses. many producers utilise conventional preservation techniques that might not preserve dates fresh for very long. if improperly kept, saudi arabia's high temperatures can hasten date degradation. supply chain managers also concerned about the lack of refrigerated cars. this limits date quality and access to distant markets with higher pricing. despite these obstacles, technology was recognised as a supply chain efficiency tool. digital inventory tracking and management technologies have improved coordination between farmers, distributors, and retailers, according to several participants. these technologies have improved supply chain monitoring, waste reduction, and shipment timing to match market demand. larger enterprises are more likely to use advanced technologies, whereas smaller farms continue to use traditional methods. the interviews also stressed the necessity of government support and infrastructure development for supply chain efficiency. participants called for greater cold storage and better transportation to boost the date palm business. the conclusion was that supply chain efficiency could be increased with the correct infrastructure and technology, increasing profitability and reducing losses. the government and commercial sector parties knew these changes would need significant investment and collaboration. agbioforum, 26(1), 2024 | 39 bhatti & sundram — dates palm cultivation and sustainable supply chain practices in saudi arabia interviewee 4 (farmer) "no appropriate storage causes us to lose many dates after harvesting. the dates don't last long with traditional methods. it's frustrating since we work hard to grow them." farmers struggle to preserve date quality after harvest due to poor storage facilities. in saudi arabia's hot environment, typical storage methods often fail, resulting in severe post-harvest losses. this issue emphasises the necessity for advanced storage techniques to extend date shelf life and prevent waste. interviewee 9 (supply chain manager) "we struggle with transportation. due to a lack of refrigerated vehicles, dates aren't as fresh when they reach the market. this impacts their price." transporting dates in a hot climate without refrigeration is difficult, as the supply chain manager noted. lack of refrigerated transportation lowers date quality during transit, affecting market prices. this exposes a key supply chain infrastructure deficiency that must be addressed to boost industry efficiency and profitability. industry expert 13 interviewed we've made progress with digital inventory systems. these tools improve date tracking and waste reduction, but few people use them. smaller farmers stick to tradition." this expert notes uneven technological use in the date palm supply chain. digital inventory management technologies improve cooperation and reduce waste, but their use is limited. smaller farms may not have the resources or skills to implement these technology, reducing industry efficiency. figure 2: weightage analysis of supply chain efficiency date palm supply chain efficiency findings are comparable with agricultural supply chain research in similar scenarios. the literature has extensively documented post-harvest losses due to poor storage. studies like nupueng et al. (2022) reveal that standard storage methods typically fail to preserve perishable agricultural products, especially in hot areas. farmers interviewed indicated severe losses owing to the lack of contemporary storage systems, supporting this research. past studies supports refrigerated transportation. in developing regions, the lack of cold chain logistics hinders perishable commodities delivery, according to (dhehibi et al., 2022). this study's supply chain managers agreed, emphasising how poor transportation infrastructure affects date quality and value. this emphasises the need for better logistics to increase date palm supply chain efficiency. technological advances, notably digital inventory systems, have improved supply chain efficiency. shaheen et al. (2022) found that digital technologies reduce waste and increase agricultural supply chain cooperation. according to past studies, smaller farmers are slow to adopt these technology. this report emphasises the need for focused support to spread such technologies across the sector. table 5: thematic analysis of supply chain efficiency step description codes/themes open coding initial categorization of raw data into basic concepts. inventory management, transportation logistics, storage facilities, supply chain bottlenecks, technology use axial coding grouping related codes into broader themes and identifying relationships. inventory vs. technology, logistical challenges, storage and transportation issues, technology adoption impact selective coding integration and synthesis of themes to form comprehensive categories. supply chain optimization: efficient inventory and transportation management, overcoming logistical and storage challenges, impact of technology on efficiency 4.3 economic impact the economic impact of date palm cultivation was the subject of a variety of opinions among participants, which was indicative of the opportunities and challenges faced by industry stakeholders. participants observed that the economic benefits of date cultivation, which are relied upon by many, are gradually influenced by market demand, production costs, and global competition. farmers and supply chain administrators are concerned about the increasing costs of production, particularly fertilisers, water, and labour. these rising prices are reducing profit margins and making it harder for smaller farms to survive. agbioforum, 26(1), 2024 | 40 bhatti & sundram — dates palm cultivation and sustainable supply chain practices in saudi arabia due to overproduction, market saturation, and rivalry from other date-producing countries, date prices might fluctuate, causing another economic worry. many attendees commented that while high-quality dates are in demand, the market is getting more competitive, especially with tunisian and algerian dates. this rivalry has forced local farmers to cut prices or enhance quality, frequently at the risk of profits. along with these problems, the interviews revealed a good trend: the increased identification of valueadded products as a way to boost economic returns. many participants mentioned turning dates into date syrup, date paste, and other products to diversify their income. this value addition shift is intended to boost profits and lessen dependence on the volatile raw date market. not many farmers can afford the investment in processing facilities and marketing to produce value-added goods. some participants questioned the efficacy of government policies and subsidies. some farmers liked government subsidies, while others believed they weren't enough to balance rising production costs. concerns also existed that larger, more established farms received a disproportionate amount of subsidies. this perceived unfairness has worsened industry economic imbalances, making smaller farms less competitive. farmer 2 said, “the cost of fertilisers has almost doubled in the last few years. making a profit is harder, especially when date prices aren't rising. we're cutting prices as much as possible, but quality must be sacrificed.” this quote illustrates farmers' economic stress from growing input costs. despite their best attempts to cut costs, many are struggling to stay profitable, especially when market prices are flat or falling. the farmer's struggle to minimise costs while preserving quality is a recurring issue in agricultural economics, underlining the constraints of global competition. north africa, notably tunisia, is a growing competitor, said interviewee 8, a supply chain manager. they offer affordable, good dates. we've lowered prices to compete, but it's affecting our profits.” as the global date market becomes more competitive, saudi arabian manufacturers are experiencing severe competition from other regions. local producers struggle to survive because they must cut prices to stay competitive, especially in price-sensitive markets. interviewee 11, an industry expert, said, “value-added products have great potential, but starting is difficult. the cost of processing equipment is significant, and market development takes time. however, those who can handle it can reap substantial rewards.” this expert discusses value-added product diversification's pros and cons. processing and selling derivative items can boost profits, but entry is difficult. many farmers, especially those with low resources, struggle with high initial costs and market development. figure 3: weightage analysis of economic impact this study supports previous studies on agricultural sector economic challenges and potential, particularly in emerging countries. studies like goh and potter (2022) show how growing input costs, especially for fertilisers and water, can hurt farming profitability. farmers in this survey are battling to stay profitable due to growing costs. agricultural economics also addresses market volatility and competition from other producing regions. global competition and price volatility affect agricultural producers' economic sustainability, especially in niche markets like date farming, according to (foong & ng, 2022). this study's supply chain managers and farmers, who are under pressure from north african competitors, support these findings and emphasise the importance of competitive pricing and product uniqueness in market share. the literature also supports value-added products as a way to boost economic returns. table 6: thematic analysis of economic impact step description codes/themes open coding initial categorization of raw data into basic concepts. production costs, market volatility, profit margins, value-added products, financial support axial coding grouping related codes into broader themes and identifying relationships. cost management, impact of market fluctuations, profitability strategies, investment in value-added products, need for financial support selective coding integration and synthesis of themes to form comprehensive categories. economic viability: managing production costs and market risks, enhancing profitability through value-added products, importance of financial support and investment agbioforum, 26(1), 2024 | 41 bhatti & sundram — dates palm cultivation and sustainable supply chain practices in saudi arabia 4.4 technological integration increasing awareness of the benefits of new technologies in agricultural practices and supply chain efficiency was evident in the technological integration interviews conducted by the date palm industry. stakeholders observed that technology is being employed to resolve concerns regarding cultivation, production, and distribution. examples include automated irrigation, digital inventory management, and precision agriculture. the date palm industry's production must be modernised and increased by the integration of such technologies. precision agriculture, which optimises agricultural practices through the use of sensors and data analytics, was a significant advancement. according to interviewees, precision agriculture enhances soil monitoring, water management, and crop production prediction. this method reduces waste and environmental effect, improving resource efficiency and farming sustainability. larger farms and commercial owners are more likely to invest in modern systems than smaller, traditional farms. technology is also changing digital inventory and supply chain management. several individuals described tracking dates from farms to markets using internet networks. these systems increase stakeholder cooperation, logistical efficiency, and inventory accuracy. digital tools have many benefits, but the cost and training required to adopt them are still holding farmers back. interviews highlighted automated irrigation systems as a major technological achievement. these drip irrigation and smart irrigation controller systems optimise water utilisation and irrigation efficiency. automated systems have reduced water and labour use, but farmers may find the installation and maintenance costs exorbitant. this has caused farming operations to adopt these technologies differently. most interviewees agreed that technological integration may assist the date palm sector. technology is expensive, requires technical expertise, and farmers have unequal resources, which hinders wider adoption. these hurdles must be overcome to maximise technology benefits and allow all stakeholders to participate in industry modernisation. “we’ve started using precision agriculture tools to monitor soil moisture and nutrient levels,” said farmer interviewee 5. we've become incredibly efficient. this is expensive, and we need more support to completely integrate these tools.” this quote shows how precision agriculture improves farming efficiency and resource management. due of its exorbitant cost, the farmer is hesitant to accept the technology. the literature often discusses the difficulty of combining the benefits of modern technology with their financial costs. supply chain manager interviewee 10 said, “digital inventory systems have really helped us streamline our operations. we can track shipments live and avoid bottlenecks. however, not all farmers use these methods, thus efficiency is still low.” this statement highlights how digital inventory management improves supply chain efficiency and reduces logistical concerns. however, the technology adoption gap amongst stakeholders suggests uneven access and the need for wider deployment to maximise efficiency. according to interviewee 14, an industry expert, automated irrigation has transformed water management for many farms. our water and labour use has decreased. smaller farms are hindered by high beginning expenditures, which we must address.” the expert emphasises automated irrigation systems' water conservation and labour savings. to provide equal access to these breakthroughs, the financial barrier to implementing such technology for smaller enterprises must be addressed. figure 4: weightage analysis of technological integration this research on technological integration in agriculture matches previous findings. precision agriculture improves resource management and efficiency, as proven in the literature. precision agriculture can increase crop yields and reduce environmental impact by optimising water and fertiliser use, according to (lombardo et al., 2022). this supports the farmers' excellent experiences with precise tools, who reported large efficiency gains. previous study shows that digital inventory and supply chain management systems improve agricultural supply chain efficiency and coordination. digital tools can streamline processes and improve transparency, improving inventory and logistics management, according to (anugerah et al., 2022). supply chain managers in this study reported similar benefits, but inconsistent adoption of such technologies suggests broader implementation. automation in irrigation systems has been shown to save water and labour in agriculture. studies like lubis et al. (2023) show that automated agbioforum, 26(1), 2024 | 42 bhatti & sundram — dates palm cultivation and sustainable supply chain practices in saudi arabia irrigation can reduce water use and boost crop production. industry experts' insights in this study support these findings, however the literature notes that these technologies' high starting costs remain a major impediment. this research on technological integration highlights the date palm industry's potential benefits from modern technologies but also their adoption hurdles. the findings support precision agriculture, digital management systems, and automated irrigation literature, emphasising the need for sustained investment and assistance to fully realise their benefits. table 7: thematic analysis of technological integration step description codes/themes open coding initial categorization of raw data into basic concepts. precision agriculture, digital systems, automation, technology adoption barriers, cost vs. benefit axial coding grouping related codes into broader themes and identifying relationships. benefits of technology, barriers to adoption, cost considerations, impact on productivity and sustainability selective coding integration and synthesis of themes to form comprehensive categories. technological adoption: benefits and barriers, costeffectiveness, impact on productivity and sustainability 4.5 stakeholder perceptions stakeholder assessments of the date palm industry's current situation and future prospects were complex. farmers, supply chain managers, and industry professionals discussed date palm cultivation, from existing practices to future development. these ideas were formed by the surroundings, technology, and market forces. common opinions of the economic and cultural relevance of the date palm were positive. there are many stakeholders who described date palms as playing an important role in the agriculture legacy and economy of saudi arabia. the cultural importance of dates to the local diet and customs was encouraging for many growers. this cultural link enables stakeholders in date palm production to invest time and capital even when conditions are not good for this type of farming. questions emerged with regard to the future of this industry and the sustainability of current methods of production. nevertheless, climate change, resource scarcity, and competitiveness made several stakeholders question the long-term feasibility of date palm production. some players were suspicious whether the sector would be able to react quickly enough to fit changing circumstances, while others believed that technical developments and better procedures could help counterbalance these challenges. the interviews also showed divergent opinions on institutional and government support. while some have hailed government programs and supports as positive, others have found them too diffused or wholly insufficient. there was consensus on the need for better infrastructure, financial support for small growers, and dedicated research and development to back up the date palm company. overall, the opinions of stakeholders reflected an industry standing at a crossroads where a rich tradition meets modern agricultural technique and market reality in date palm farming. the complex nature of the sector, along with the need for a balanced approach that addresses both the cultural and practical problems of date palm farming, leads to divergent opinions among the different stakeholders. "growing dates is part of our heritage, not just a business," the first farmer interviewed noted. we are resolved to carry on this tradition and improve our methods in spite of several challenges. many farmers have great cultural connection to date palm farming. not only a business, but also part of their culture and legacy, they view the sector. this drives them to get over challenges and forward the sector. "we're witnessing a lot of changes in the industry and technology," said interviewee 6, a supply chain manager, "while some are helpful, there's a lot of ambiguity about how they will play out in the long run. a combination of hazards and possibilities. this statement shows cautious optimism among stakeholders about technical and market changes. recognising both opportunities and threats shows the industry's complexity and the uncertainty that comes with rapid change. interviewee 13, an industry expert, said, “the government's support has been helpful, but it often favours larger operations. small farmers are hurting, and we need targeted support to level the playing field." the expert's insight highlights a concern regarding government support's adequacy and fairness. some stakeholders welcome the aid, but they want more equitable and targeted steps to help smaller farms, who may have more trouble accessing resources and opportunities. figure 5: weightage analysis of stakeholder perceptions agbioforum, 26(1), 2024 | 43 bhatti & sundram — dates palm cultivation and sustainable supply chain practices in saudi arabia existing literature on agricultural practices' cultural and economic relevance supports stakeholder perceptions. foong et al. (2023) found that communities have strong cultural attachments to traditional agricultural techniques like date palm planting. this study's farmers agree that date farming's cultural history is important to their dedication to the sector. previous study supports concerns about present practices' sustainability and the industry's adaptability. studies like heldt and beske-janssen (2023) have examined how climate change and resource scarcity affect conventional agricultural sectors, particularly those that depend on specific environmental conditions. these broader issues reflect stakeholder perceptions of the industry as being inadaptability and pinpointed needs for proactive risk mitigation. governments' support has been criticized, and the urge is to give way to more equal and focused policies, something supported by research into agricultural policy and support mechanisms. some criticise government subsidies and support programs for favouring larger farms over smaller ones (dhehibi et al., 2022). by this study, the concerns of the industry expert with regard to balanced support underline the establishment of policies addressing the interest of all stakeholders in particular vulnerable ones. in conclusion, the date palm industry stakeholder perceptions are many and varied. such findings highlight cultural significance, market and technical changes, as well as equitable ways of support. these reveal the industry's current position and provide strategic improvements. table 8: thematic analysis of stakeholder perceptions step description codes/themes open coding initial categorization of raw data into basic concepts. cultural significance, economic concerns, technological expectations, government support, market competition axial coding grouping related codes into broader themes and identifying relationships. cultural vs. economic priorities, impact of technology on perceptions, adequacy of government support, competitive pressures selective coding integration and synthesis of themes to form comprehensive categories. stakeholder views: balancing cultural values with economic and technological needs, evaluating government support and market pressures 5. discussion the future of date palm farming depends on a combination of factors: practices of sustainability, supply chain efficiency, economic impact, technological integration, and stakeholder input being at the forefront. quite a brilliant future is ahead of the date palm planting industry. it holds cultural and economic significance by being an important part of saudi arabia's agricultural heritage. reasons one and two are so crucial for saudi arabia. like worldwide agriculture, the industry faces opportunities and challenges as it brings together the traditional and the modern. the effects of such influences in date palm cultivation will be discussed in this section. here we take a look at the sector through the lens of technology, stakeholder viewpoints, and economic factors, with further understanding how the company internally works to find out about the most critical projects it is dealing with in terms of development and sustainability. to enable this, the data coming from different domains are integrated. date palm cultivation and sustainable supply chain practices in saudi arabia have been researched on different platforms, covering major topics related to supply chain efficiency, economic effect, and sustainable cultivation practices. the complex dynamics and interdependencies of each of these places affect the date palm industry in the area. this session develops a synthesis of these concerns, identifying drivers in the business and indicating ways to grow and improve. such is the date palm industry born both of modern and traditional methods as illustrated in sustainable agricultural practices. conventional farming was found to give way gradually to more environmentally friendly methods in the area. precision agriculture can be used to maximize efficiency, minimize environmental impact and enhance confidence in harvest foresight. larger farms are thus more likely to invest in such technology, as traditional and smaller farms lack the resources or expertise to do so. this discrepancy underlines the need for support policies that would encourage sustainable practices throughout the firm (akhtar et al., 2023). while technologies can make farming more viable, new research suggests that sometimes the benefits will not be equally distributed, leading to more inequality in income. however, environmental conservation and the long-term viability of date palm growing under the changes in climate and limitation of resources call for a sustainable approach. the results on efficiency in the value chain show a sector with potential and issues in the optimization process of transporting dates from farms to final markets. the work found that efficiency has improved due to the adoption of digital inventory systems and automated irrigation, but significant challenges lie ahead. poor storage, refrigerated transportation, and logistical inefficiencies affect date quality and profitability (almutawa, 2022). the market is becoming more competitive, with international competition pressuring producers. the results imply that while technology integration into the supply chain has improved, a more holistic strategy is needed to solve infrastructure shortages and improve stakeholder coordination. according to agricultural supply chain research, technological solutions can speed processes, but they need infrastructure and training to be fully effective. a more robust and effective supply chain requires government, business, and technology collaboration to address supply chain efficiency issues. date palm agbioforum, 26(1), 2024 | 44 bhatti & sundram — dates palm cultivation and sustainable supply chain practices in saudi arabia production affects producers financially and offers valueadded options. farmers and supply chain managers worry about increased production costs and market instability, according to the report. increased fertiliser and water costs and shifting market prices are compressing corporate margins and causing economic instability. developing value-added goods like date syrup and paste could boost profits and reduce dependence on raw date markets. not often accessible to smaller businesses, value-added production calls for large investment and knowledge. this economic situation fits earlier studies on the control of production expenses and limits in market dynamics in the agriculture industries (khan et al., 2023). these findings underline the need of using financial systems and supportive policies to lower economic constraints and let farmers to seize growing possibilities. technological integration in the date palm sector shows great advancement but also certain difficulties. notwithstanding the general acceptance of automated irrigation, computerised inventory systems, and precision agriculture, the study shows that their benefits are not evenly dispersed across the sector. precision agriculture's resource efficiency and production could be improved with advanced data analytics and sensor technology. this method has helped farmers to properly manage soil and water consumption, therefore supporting the body of research emphasising the need of technology in improving agricultural output and sustainability. most larger commercial farms that have the means to make investments in these technologies are seen to have adopted them. smaller, conventional farms are hampered from fully capitalising on modern developments by limited financial resources and inadequate technological knowledge (cruz et al., 2023). the resultant gap leads to economic unsustainability, problems of industrial production, and inefficiency in agriculture. it is deduced from the research that more aid and resources have to be focused on improving the availability of these technologies so that the technical development will be beneficial to all parties concerned. the new directions within the date palm industry are considered by its stakeholders with both hope and anxiety. palm farming in their homelands is linked with historical development and subsistence means for the stakeholders. this close relation alone has promoted the conservation and improvement of traditional practices despite market turbulence and environmental issues. nevertheless, the advent of new technological breakthroughs with fierce market competition has raised doubts over whether such an industry would be able to survive. perspectives held by each of the various stakeholders underpin the need for an integrated approach, one that considers both pragmatic concerns and the maintenance of cultural values. previous studies have shown that there is a need to marry traditional knowledge with contemporary methodologies in achieving sustainable development (hiloidhari et al., 2023). further, the report draws attention to government financing problems, as certain stakeholders claim this is biased or is insufficiently strong for more ambitious programs. the study points out agricultural policy research issues that point out the need for special and fair support to be provided to smaller and less-resourced farmers. the date palm cultivation financial outcomes signal the requirement to properly regulate the market forces and production expenses. producers are challenged by the increasing fertilizer and water costs combined with fluctuating market prices. adding to these economic stresses are overseas suppliers of products that compete with the local producers in the global date market. despite these challenges associated with diversification, value-added products have the potential to improve revenue and reduce dependence on raw date markets. most small-scale producers are constrained by financial resources and expertise required to shift towards value-added farming (cricelli et al., 2024). the present set of research on issues in agricultural economic and future perspectives emphasizes the importance of using financial instruments and supportive policies in enabling farmers to keep expenses under control and benefit from the advantages of emerging market growth. unless the government, business, and financial institutions collaborate to resolve these economic problems, a much more even-handed and favourable environment for all concerned would thus preserve the date palm sector. a review of different aspects relating to methods of sustainable agriculture, effectiveness of the supply chain, economic impact, incorporation of technology, and stakeholders' perspective-these all put up a multi-faceted yet interesting perspective of the date palm industry. distinct yet all of them connect to reveal the delicate balance between innovation and tradition. the research findings indicate that a holistic approach would be most suitable for addressing the diverse challenges and opportunities found within the industry. the company development will be based on equable support systems, improvements in supply chain efficiency, and technology breakthroughs applied. results provide a concrete base for the understanding of the dynamics at present and specific recommendations that will help ensure the long-term viability and profitability of date palm farming. these findings can help stakeholders cooperate to promote the expansion and preservation of the sector by means of efficient management of tradition and innovation, therefore supporting both. 6. research implications this result has broad theoretical consequences especially in the domains of agricultural economics, supply chain management, and sustainable development. the study reveals how contemporary innovations may be included into conventional farming methods, therefore blending innovation with history. improving agricultural technology agbioforum, 26(1), 2024 | 45 bhatti & sundram — dates palm cultivation and sustainable supply chain practices in saudi arabia diffusion theory, the research reveals how precision agriculture, digital management systems, and automated irrigation influence the date palm industry. the paper also looks at stakeholder opinions and how industrial policies are influenced by cultural values and financial restraints. this supports stakeholder theory debate and highlights inclusive and contextually sensitive stakeholder interaction and policy making in agriculture. agriculture sustainability and profitability theories are advanced by economic analysis of production costs, market volatility, and valueadded possibilities. research develops theoretical models that handle modern agricultural system complexity by emphasising technological integration, economic feasibility, and cultural value. these contributions help us balance technological, economic, cultural, and environmental factors, laying the groundwork for sustainable agricultural and supply chain management research and practice. date palm stakeholders benefit from this research's operational efficiency and sustainability insights. farmers need support to adopt precision agriculture instruments and automated irrigation systems. targeted subsidies, training, and technical assistance from policymakers and industry leaders can help smaller and traditional farmers adopt technology. minimising waste and maximising input utilisation improves resource management, productivity, and sustainability. the analysis also stresses the necessity for comprehensive initiatives to rectify technological advantages' uneven distribution to assure industry-wide access. practical methods can improve farming and date palm sector resilience and growth. the research focusses supply chain management infrastructure and collaboration to streamline operations and reduce logistical inefficiencies. modern warehouses, refrigerated transport, and computerised inventory systems can improve supply chain efficiency and meet market deadlines. producers require supportive financial systems and laws to address rising input costs and market volatility. price stabilisation, low-interest financing, and value-added product investment alleviate economic pressures and improve earnings. these practical strategies can help stakeholders develop a more resilient supply chain that can adapt to market and environmental changes. these practical consequences could improve industry operations, growth, and sustainability. 7. limitations and future research directions this research on sustainable supply chains and date palm cultivation is beneficial; however, it has certain limitations. first, while detailed in saudi arabia, the study may not apply to other regions with different climates, economies, and cultures. saudi arabian agricultural methods, supply chain dynamics, and stakeholder opinions may differ from other date-producing countries or regions with differing environmental or socio-economic conditions. researchers can better understand how different factors affect date palm cultivation and supply networks by comparing many countries or regions. comparing regional best practices and issues may make conclusions more applicable to varied agricultural scenarios. a small sample of stakeholders was contacted for qualitative data, limiting the study. the indepth qualitative method provided rich, nuanced insights, although the sample size and selection may not fully represent date palm industry viewpoints. underrepresented industrial participants and smallholder farmers may be under-represented. a larger and more diverse stakeholder sample and quantitative techniques like surveys could validate and enhance qualitative findings in future studies. this would improve data and industry dynamics and stakeholder viewpoints. rapidly changing technology and market factors hampered the study. rapid technological and commercial changes may date this research. longitudinal study should track technological uptake, supply chain behaviour, and economic impacts. this approach would reveal how innovations and market changes affect the industry, enabling trend identification and strategy adaptation. at last, the studies revealed significant themes on technological integration, supply chain efficiency, and economic impact; yet, they did not assess their interactions or total influence on the industry. using contemporary analytical techniques, future research might assess the relationships among these elements and their consequences on sustainability and profitability. this more research could highlight the industry's potential and expose how improvements in one area influence others, therefore highlighting its difficulties as well. studies on institutional support for these interactions and legislative interventions could help create resilience plans and whole date palm sector efficiency. 8. conclusion the date palm industry in saudi arabia is examined in this study, along with sustainable cultivation practices, supply chain efficiency, economic impact, technological integration, and stakeholder viewpoints. the findings reveal both progress and challenges by exhibiting a dynamic link between old techniques and new innovations. although technology has enhanced sustainable agricultural methods, the adoption difference between large and smallscale businesses emphasises the need of focused support to increase acceptance. although supply chain technologies have improved efficiency, logistical and infrastructure problems still limit the industry's ability to meet consumer expectations. with value-added products providing a possible but underused way to increase profitability, the economic analysis emphasises the difficulties of controlling manufacturing costs and market volatility. the studies highlight the complex opinions of stakeholders, therefore exposing a careful balance between cultural agbioforum, 26(1), 2024 | 46 bhatti & sundram — dates palm cultivation and sustainable supply chain practices in saudi arabia values and pragmatic concerns. date palm farming is very culturally significant, hence even if players understand the need of innovation and adaptation, they are dedicated to traditional techniques. in order to solve logistical and financial problems, this paper suggests better infrastructure, support systems, and strategic investments. combining technology developments with supporting policies and fair resource distribution helps stakeholders in the date palm industry create more resilience. this research guarantees that tradition and innovation coexist and prepares the basis for next projects and pragmatic efforts to develop and protect the sector. acknowledgment this work was supported by the deanship of scientific research, vice presidency for graduate studies and scientific research, king faisal university, saudi arabia [grant kfu241003]'. references abdallah, s. b., parra-lópez, c., elfkih, s., suárez-rey, e. m., & romero-gámez, m. 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employee engagement; job satisfaction; organizational commitment; environmental performance; organizational culture. 1. introduction in the contemporary era, with a heightened emphasis on environmental issues and sustainability, organizations in diverse sectors are increasingly acknowledging the significance of embracing environmentally responsible practices (suriyankietkaew, krittayaruangroj, & iamsawan, 2022). the acknowledgment of finite resource availability, the impacts of climate change, and societal pressures to embrace eco-friendly approaches have triggered a paradigm shift in how businesses conduct their operations (ismail, 2023). in this evolving landscape, green human resource management (hrm) has surfaced as a strategic approach that harmonizes human resource practices with environmentally sustainable objectives (bahuguna, srivastava, & tiwari, 2023). while the impact of green hrm practices on ecological results is welldocumented, its effect on the broader workforce remains a pivotal area for investigation (tuan, 2022). furthermore, the capacity of green hrm to influence not just environmental consequences but also employee engagement and commitment has become a subject of growing interest (irani, kiliç, & adeshola, 2022; nurhayati, et al, 2022a). green hrm practices encompass a broad spectrum of initiatives designed to diminish an organization's carbon footprint, preserve natural resources, and cultivate environmentally conscious behaviours among employees (ercantan & eyupoglu, 2022). these practices encompass various aspects, from advocating recycling and energy efficiency to integrating sustainability into the organizational culture. while the influence of green hrm practices on environmental results is extensively studied, their impact on the agricultural workforce is a research area that has received limited attention (ansari, farrukh, & raza, 2021). despite the increasing significance of sustainability practices, there remains a significant gap in empirical research regarding how green hrm practices impact the workforce, regardless of the industry (bahuguna, srivastava, & tiwari, 2023). while studies in diverse sectors show the positive impact of green hrm on environmental results, a more comprehensive understanding of how these practices affect employees across various industries is required. the workforce, regardless of the sector, plays an integral role in every organization's operations (tuan, 2022). exploring how green hrm practices influence employee engagement, job satisfaction, organizational commitment, and performance offers valuable insights into the broader potential of eco-friendly hr strategies. in this study, green hrm practices pertain to policies and actions taken by agricultural organizations to reduce mailto:caicen.c3@gmail.com agbioforum, 25(2), 2023 | 97 cen — studying the impact of green human resource management practices on sustainable workforce … environmental impact and promote sustainability (ojo, tan, & alias, 2022). these practices include eco-friendly recruitment, environmental training, green performance appraisals, and the cultivation of environmentally responsible leadership (muisyo, qin, ho, & julius, 2022). this study will evaluate the impact of green hrm practices on three key dependent variables: job satisfaction, which is crucial for employee well-being, retention, and workforce stability, directly influencing performance (siswanto, basalamah, mus, & semmaila, 2020). organizational commitment measures the extent of employee dedication to the organization's goals and values (mishra & tikoria, 2021). it's considered a pivotal factor influencing employee retention and performance (dawy, yohana, & widodo, 2022). environmental performance gauges the alignment of an organization's operations and practices with sustainability and environmentally responsible objectives (mooneeapen, abhayawansa, & mamode khan, 2022). research consistently reveals that employee engagement plays a crucial role in explaining how green hrm practices affect various organizational outcomes (ercantan & eyupoglu, 2022; scharp, bakker, & breevaart, 2022). employee engagement, a multifaceted concept, represents the emotional and intellectual commitment of employees to their work and the organization (quek et al., 2021). this increased engagement is closely linked to higher job satisfaction, improved productivity, and the overall wellbeing of employees (vakira, shereni, ncube, & ndlovu, 2023). employee engagement serves as the conduit through which green hrm practices channel their positive impact, creating a work environment where employees are not only committed to their roles but also deeply committed to the organization's sustainability and environmental objectives (ercantan & eyupoglu, 2022). additionally, organizational culture, as a moderator, will be examined to understand its impact on the relationship between green hrm practices, employee engagement, and the dependent variables. an organization's culture, encompassing its values, norms, and practices, can either support or impede the effectiveness of green hrm initiatives (siagian, setyadi, hendri, & fitrio, 2022). moreover, this study focuses on employees within agriculture sector organizations. the agricultural sector, vital for global sustenance, confronts distinct challenges in the 21st century, including climate change, resource depletion, and environmental degradation, which necessitate urgent attention (bolarinwa, ajayi, adenuga, & obayelu, 2023; nurhayati, et al, 2022b). to address these challenges, agricultural organizations are increasingly acknowledging the importance of embracing environmentally responsible practices (shen, wang, boussemart, & hao, 2022). this recognition is embodied in green hrm, a strategic approach that aligns human resource practices with ecological sustainability. green hrm aims to reduce an organization's carbon footprint, preserve natural resources, and promote environmentally conscious behaviours among employees (muisyo, qin, ho, & julius, 2022). although green hrm practices have proven effective in diverse sectors, their influence on the agricultural workforce is an underexplored area. empirical research on green hrm within the agricultural context has been limited to date, despite the sector's susceptibility to environmental changes and the urgent global demand for sustainable agricultural practices (rejeb, abdollahi, rejeb, & treiblmaier, 2022; mihrani et al 2023). moreover, agricultural labour typically entails extended exposure to natural elements and physical demands that differ from those in other sectors (sumberg & giller, 2022). this creates a substantial knowledge gap concerning the consequences of green hrm practices in the agricultural sector. 2. aims and objectives to bridge the existing literature gap and address the research problem, this study has established the following research objectives: • to examine how green hrm practices affect employee job satisfaction, organizational commitment, and environmental performance. • to assess the effect of green hrm practices on employee engagement in the agricultural industry. • to explore how employee engagement acts as a mediator in the connection between green hrm practices and job satisfaction, organizational commitment, and environmental performance in the agricultural workforce. • to scrutinize how organizational culture moderates the relationship between green hrm practices and employee engagement. the results of this study have the potential to enhance our comprehension of how green hrm can be customized to meet the distinctive needs of the agricultural sector. this, in turn, can aid in bolstering the resilience and sustainability of this crucial industry while promoting a more engaged and committed workforce. 3. research significance 3.1 green hrm practices and outcomes green hrm practices aim to incorporate environmental sustainability into an organization's hr policies and procedures. these encompass initiatives like environmentally conscious recruitment, green training programs, and the cultivation of environmentally responsible leadership (irani & kilic, 2022; nurhayati, et al., 2022c). the underlying concept is that these practices, by aligning the workforce with the organization's environmental objectives, are expected to impact employee attitudes and behaviours, subsequently influencing job satisfaction, organizational commitment, and environmental performance. prior research has confirmed a positive correlation between green hrm practices and job satisfaction (kuhrmann, fernández, & daneva, 2017). when employees perceive their organization's active involvement in environmentally responsible initiatives, it can boost their overall job satisfaction (liggans et al., 2019). research by lartey (2021) shows that employees who believe their agbioforum, 25(2), 2023 | 98 cen — studying the impact of green human resource management practices on sustainable workforce … organization is genuinely dedicated to environmental sustainability tend to have higher job satisfaction. additionally, when employees actively engage in these initiatives, they are more inclined to perceive their contribution to a broader environmentally responsible cause. this sense of purpose and alignment with the organization's values should naturally result in increased job satisfaction and stronger organizational commitment (ngo & ngo, 2023). furthermore, green hrm practices can impact organizational commitment. when employees perceive their organization as environmentally responsible, they are more inclined to experience commitment to the organization's mission and values (ribeiro et al., 2022). the study by faisal (2023) uncovered a favourable correlation between green hrm practices and employees' organizational commitment. concurrently, it is anticipated that green hrm practices will play a role in enhancing an organization's environmental performance. employees who actively engage in eco-friendly initiatives as a consequence of these practices are poised to exert a positive influence on the organization's environmental performance (ercantan & eyupoglu, 2022). scholars such as alreahi et al. (2023) endorse this concept, demonstrating the potential of employee participation in environmental practices to improve an organization's environmental results. moreover, employees actively involved in eco-friendly endeavours within the organization may exhibit greater awareness of their individual environmental behaviours, as noted by (abualigah et al., 2023). this increased awareness, coupled with the organizational culture that fosters environmental responsibility, should logically lead to enhanced environmental performance. in line with the conceptual framework, supported by relevant literature, and logical reasoning, we posit the following hypotheses: hypothesis 1: green hrm practices positively impact a) job satisfaction, b) organizational commitment among employees in organizations, and c) environmental performance within organizations. 3.2 impact of green hrm practices on employee engagement green hrm practices align the values and objectives of employees with those of the organization. research by rungruangjit, chankoson, and charoenpornpanichkul (2023) underscores the significance of harmonizing employee values with organizational values to promote engagement. employees who perceive alignment between their values and the organization's green initiatives are more likely to engage actively. moreover, research indicates that green hrm practices frequently entail involving employees in environmentally responsible actions, including recycling, conservation, and sustainable practices. participating in such activities cultivates a sense of engagement and ownership (begum, ashfaq, xia, & awan, 2022). fostering a positive organizational culture that values sustainability enhances employee engagement. research also indicates that organizations prioritizing environmental responsibility often experience higher levels of employee engagement (kuzior, kettler, & rąb, 2022). green hrm practices intrinsically encourage environmentally responsible attitudes and behaviours. this emphasis on sustainability aligns with the values of a growing number of employees who are increasingly environmentally conscious (dhir et al., 2021). hence, they tend to be more engaged at work when they view their organization as socially and environmentally responsible. employee participation in environmentally positive activities fosters a sense of ownership and contribution, naturally leading to higher engagement (szabo & webster, 2021). a positive organizational culture fosters employee engagement. therefore, it is posited that; hypothesis 2: green hrm practices have a positive impact on employee engagement within organizations. 3.3 employee engagement, job satisfaction, organizational commitment, and environmental performance employee engagement is defined by employees' emotional and intellectual dedication to their work and the organization (scharp, bakker, & breevaart, 2022). this concept implies that engaged employees are more likely to experience job satisfaction, organizational commitment, and make positive contributions to environmental performance (kuzior, kettler, & rąb, 2022). the connection between employee engagement and job satisfaction is firmly established. when employees are actively engaged and dedicated to their work, they are more inclined to derive personal fulfilment from it (aboramadan, hamid, kundi, & el hamalawi, 2022). studies further demonstrate that engaged employees exhibit a heightened investment in their work, which logically results in increased job satisfaction (quek et al., 2021). concurrently, employee engagement frequently precedes greater organizational commitment. engaged employees are more prone to align themselves with the organization's values and objectives (lartey, 2021). likewise, aboramadan, hamid, kundi, and el hamalawi (2022) research has shown that engaged employees display loyalty and dedication to their organization, nurturing a strong sense of attachment. this logical correlation suggests that engaged employees are more likely to demonstrate commitment to the organization. moreover, engaged employees who exhibit commitment to the organization are also more inclined to engage in and support green initiatives. their heightened sense of responsibility and commitment extends to environmentally responsible behaviours, ultimately contributing to enhanced environmental performance (kuzior, kettler, & rąb, 2022). drawing from conceptualizations, existing literature, and logical reasoning, we formulate the following hypotheses: hypothesis 3: employee engagement has a positive impact on a) job satisfaction, b) organizational commitment among employees in organizations, and c) environmental performance within organizations. 3.4 mediatory role of employee engagement green hrm practices are anticipated to exert a positive influence on employee engagement by emphasizing environmentally responsible behaviour and sustainability. consequently, engaged employees should encounter heightened job satisfaction (boccoli, gastaldi, & corso, 2023). the rationale behind this connection is agbioforum, 25(2), 2023 | 99 cen — studying the impact of green human resource management practices on sustainable workforce … the sense of fulfilment and achievement that engaged employees derive from their work, particularly when it aligns with their values. when employees are deeply engaged through green initiatives, they are more prone to experiencing elevated levels of satisfaction (quek et al., 2021). concurrently, green hrm practices aim to cultivate a sense of shared values and engagement among employees by promoting sustainability and environmental stewardship (saks, 2022). as employees become increasingly engaged, they tend to develop greater commitment to the organization's objectives and mission. green hrm practices, with their emphasis on engagement and environmentally responsible conduct, are likely to enhance employee engagement (paul & singh, 2023). engaged employees are more prone to actively participate in environmentally friendly practices, a contribution that can lead to improved environmental performance (piligrimienė et al., 2020). it is anticipated that elevated levels of employee engagement will correlate with improved environmental performance, primarily because of employees' active engagement in eco-friendly initiatives. based on the conceptual framework and rationale, the following hypotheses are put forward: hypothesis 4: employee engagement partially mediates the relationship between green hrm practices and a) job satisfaction, b) organizational commitment among employees in organizations, and c) environmental performance within organizations. 3.5 moderating role of organizational culture organizational culture comprises the collective values, beliefs, and norms prevailing within an organization (dawy, yohana, & widodo, 2022). when an organization's culture is in alignment with the principles of green hrm practices, it has the potential to amplify the impact of these practices on employee engagement (scaliza et al., 2022). the moderation hypothesis posits that the association between green hrm practices and employee engagement will be more pronounced when the organizational culture is more conducive to environmentally responsible behaviours. in essence, the positive influence of green hrm practices on employee engagement will be heightened in an organizational culture that actively promotes and values environmental stewardship. in organizations where the culture strongly supports and values sustainability and environmental responsibility, employees are more inclined to embrace green hrm practices and actively participate in environmentally friendly behaviours (aggarwal & agarwala, 2023). a culture that reinforces eco-friendly initiatives can enhance the effect of green hrm practices on employee engagement (khammadee & ninaroon, 2022). conversely, employees may encounter greater difficulty in engaging with green initiatives if these initiatives are not aligned with the organizational culture. based on the conceptual framework and rationale, the following hypothesis is posited: hypothesis 5: the relationship between green hrm practices and employee engagement is moderated by organizational culture. specifically, the positive impact of green hrm practices on employee engagement will be stronger when organizational culture is supportive of environmentally responsible behaviours. 3.6 theoretical framework of the study at its essence, this framework centres on the association between green hrm practices and pivotal outcomes, comprising job satisfaction, organizational commitment, and environmental performance. employee engagement assumes a critical role as a mediator, illustrating its influence on these outcomes. furthermore, organizational culture is presented as a moderator, shaping the intensity and character of the link between green hrm practices and employee engagement. 4. structure of review the theoretical underpinning of this study finds its basis in social exchange theory, a firmly established framework in the domains of organizational behaviour and human resource management (wang, xiang, yang, & ma, 2019). this theory offers valuable insights into the dynamics of interactions and exchanges between individuals and organizations, which is particularly pertinent when examining the influence of green hrm practices on employee engagement, job satisfaction, organizational commitment, and overall performance. social exchange theory asserts that individuals participate in social interactions and relationships with the anticipation of mutual advantages (adams, 1965). it centres on the concept that individuals evaluate the costs and benefits linked to their relationships and interactions, subsequently making rational decisions based on this evaluation. in the organizational context, employees dedicate their time, effort, and skills with the expectation of receiving various rewards and outcomes from their organization (wang, xiang, yang, & ma, 2019). these rewards encompass not only financial compensation but also non-monetary elements such as job satisfaction, recognition, and prospects for personal and professional development (maruyama, keith, & woosnam, 2019). in the context of this study, green hrm practices can be regarded as organizational investments aimed at fostering environmentally responsible behaviours among employees and reducing the environmental footprint of its operations. in response, employees may view these practices as a manifestation of organizational support that surpasses their fundamental job obligations. according to the theory, engaged employees are more inclined to invest additional effort in their work because they believe that their contributions are appreciated and valued by the organization (wang & qiao, 2020). green hrm practices can engage employees by fostering shared values and environmental stewardship, as predicted by social exchange theory. furthermore, employees who receive rewards, such as recognition for eco-friendly contributions and the chance to work in an environmentally responsible organization, are more likely to experience job satisfaction (mansoor & paul, 2022). furthermore, organizational commitment is nurtured when employees believe that their contributions are reciprocated through the organization's agbioforum, 25(2), 2023 | 100 cen — studying the impact of green human resource management practices on sustainable workforce … commitment to their well-being and professional advancement. green hrm practices that prioritize employee well-being and align with employees' values can boost organizational commitment (dawy, yohana, & widodo, 2022). this theory is also applicable in comprehending how green hrm practices may motivate employees to dedicate their time and efforts to sustainable and eco-friendly behaviours that enhance the organization's environmental performance. 5. research method research design: this study utilizes a quantitative survey methodology with a time-lagged approach to investigate the connections between the variables under study. time 1 data for green hrm practices and employee engagement was gathered from january 1, 2022, to march 30, 2022. time 2 data for job satisfaction, organizational commitment, environmental performance, and the moderating variable (organizational culture) was collected from june 1, 2022, to august 30, 2022. sample and sampling technique: the study focused on respondents employed in both the public and private sectors, particularly those overseeing agriculture departments or sectors. to ensure diverse representation from various organizational settings within the agricultural domain, a multistage random sampling technique was employed. in the first stage, agriculture departments/sectors were randomly selected from both the public and private sectors. subsequently, in the second stage employees from the chosen departments/sectors were randomly sampled to partake in the survey. the utilization of multistage random sampling was designed to secure a thorough and representative sample of employees engaged in agriculture management. data collection: data at time 1 (iv and mediator) and time 2 (dvs and moderator) were obtained through a structured questionnaire. the questionnaire was specifically crafted to assess the degree of green hrm practices, employee engagement, job satisfaction, organizational commitment, environmental performance, and organizational culture. respondents received explicit instructions and were guaranteed the confidentiality of their responses. time-lagged approach: the time-lagged approach, involving an approximate two-month gap between the two data collection points, was chosen to capture the temporal progression of relationships. this approach facilitates the exploration of how alterations in green hrm practices at time 1 correspond to subsequent shifts in employee engagement at time 1 and how these variations affect the dependent variables at time 2, all while considering the impact of organizational culture at time 2. a total of 355 complete responses were obtained at both time 1 and time 2, resulting in a response rate of 67.3%. ethical considerations: the research adheres to ethical guidelines, ensuring that all participants provide informed consent, and maintaining confidentiality and data security. ethical approval for the study has been granted by the relevant institutional review board. 5.1 respondents' characteristics the study's sample included respondents with diverse characteristics. in terms of gender distribution, 66% were male participants, and 34% were female participants. age groups varied, with 27% falling between 18 and 30 years, 35% between 31 and 40 years, 25% between 41 and 50 years, and 13% aged over 50 years. regarding educational qualifications, the majority held bachelor's degrees, constituting 46% of the sample, while 32% possessed master's degrees. furthermore, 12% of the respondents had high school diplomas, and 10% held doctoral degrees. in terms of employment sectors, the sample encompassed a blend of public and private sector participants, with 53% working in the public sector and 47% in the private sector. experience levels among respondents were varied, with 18% having 0-5 years of work experience, 28% with 6-10 years, 23% with 11-15 years, and 31% with over 15 years of experience. the sample included individuals holding various positions within agricultural departments or sectors, with 41% in managerial roles, 19% in technical positions, 24% in administrative roles, and 16% in other positions. additionally, the sample exhibited diversity in terms of organizational sizes, with 38% working in large organizations, 31% in medium-sized organizations, and the remaining 31% in small organizations. these demographic characteristics reflect the varied composition of the study's sample. 5.2 measures of the study green hrm practices were assessed using a scale developed by renwick et al. (2016). the scale used measures the degree to which an organization's hrm practices incorporate environmentally sustainable principles. respondents were tasked with rating the presence and implementation of various green hrm practices within their organization. employee engagement was assessed using the utrecht work engagement scale (uwes), which was developed by schaufeli, bakker, and salanova (2003). the uwes is a well-established scale designed to evaluate an employee's emotional and cognitive engagement with their work. respondents were asked to rate their agreement with statements pertaining to workplace engagement. job satisfaction was measured using a scale that was developed by jiang, di milia, jiang, and jiang (2020). this comprehensive scale encompasses various facets of job satisfaction, including aspects such as work, pay, promotions, supervision, and co-workers. respondents were asked to indicate their level of satisfaction with each of these aspects. organizational commitment was assessed using the organizational commitment questionnaire (ocq) from cohen (1996). the ocq measures affective, normative, and continuance commitment. respondents were asked to indicate the extent to which they felt attached, obligated, and committed to their organization. environmental performance was assessed using a customized scale that was based on the environmental performance measurement framework (epmf) from barman (2017). the scale assessed different dimensions of an organization's environmental performance, agbioforum, 25(2), 2023 | 101 cen — studying the impact of green human resource management practices on sustainable workforce … encompassing areas such as waste reduction, energy efficiency, and emissions control. additionally, organizational culture was assessed using a scale developed by bavik (2016). respondents were requested to provide descriptions of their organization's culture in alignment with the predefined cultural dimensions. 6. results descriptive statistics were employed to offer an initial data overview. this involved the computation of means, standard deviations, and frequencies to concisely depict participants' responses, thereby capturing central tendencies and variations in the variables. table 1 presents a summary of crucial statistical values for the principal constructs examined in this research. mean values provide insight into the central tendency of participant responses, with higher means indicating a more positive perception or a more robust presence of the respective construct (noor, mansoor, & shamim, 2022; shmueli et al., 2019). the analysis unveiled a positive perception of green hrm practices among the respondents, as indicated by a mean score of 4.45 on a scale spanning from 1 to 5. the standard deviation (std) of 0.89 suggested some response variability, signifying that participants did not universally share the same level of agreement. nevertheless, this construct exhibited satisfactory convergent validity, as evidenced by an average variance extracted (ave) of 0.69. the high internal consistency reliability was indicated by a composite reliability (cr) of 0.95, and strong construct validity was supported with a construct validity (ca) of 0.92. employee engagement received very positive ratings, with a mean score of 4.70 and a std of 0.95, indicating some variability in responses. it displayed good convergent validity with an average variance extracted (ave) of 0.75 and excellent internal consistency reliability, as evidenced by a composite reliability (cr) of 0.90. the construct validity (ca) was also strong at 0.86. job satisfaction was moderately positively perceived, with a mean score of 4.31 and a std of 0.84, indicating moderate variability in responses. the construct demonstrated good convergent validity with an ave of 0.74 and good internal consistency reliability, as indicated by a cr of 0.93. the ca was strong at 0.80. organizational commitment received very positive perceptions, with a high mean score of 4.78 and a std of 0.81, suggesting moderate variability in responses. the construct exhibited good convergent validity with an ave of 0.71 and good internal consistency reliability, with a cr of 0.87. the ca was strong at 0.79. environmental performance received positive ratings, with a mean score of 4.55 and a std of 0.92, indicating some variability in responses. the construct showed good convergent validity with an ave of 0.67 and good internal consistency reliability, as reflected by a cr of 0.95. the ca was strong at 0.89. organizational culture was moderately positively perceived, with a mean score of 4.42 and a std of 0.86, suggesting moderate variability in responses. the construct exhibited good convergent validity with an ave of 0.76, and it demonstrated good internal consistency reliability, with a cr of 0.89. the ca was strong at 0.78. table 1: mean, std, reliability, and validity of the study constructs construct mean std ave cr ca green hrm practices 4.45 0.89 0.69 0.95 0.92 employee engagement 4.70 0.82 0.70 0.90 0.86 job satisfaction 4.31 0.84 0.74 0.93 0.80 organizational commitment 4.78 0.81 0.71 0.87 0.79 environmental performance 4.55 0.92 0.67 0.95 0.89 organizational culture 4.42 0.86 0.76 0.89 0.78 6.1 correlation analysis the relationships among the key constructs are summarized in table 1. green hrm practices and employee engagement displayed a positive correlation of 0.506, indicating that improvements or more positive ratings in one of these constructs were associated with similar improvements in the other. likewise, green hrm practices and job satisfaction exhibited a positive correlation of 0.378, suggesting that enhancements in green hrm practices were linked to higher levels of job satisfaction. organizational commitment demonstrated strong correlations with multiple constructs, including a positive correlation of 0.596 with green hrm practices, 0.431 with employee engagement, 0.471 with job satisfaction, and 0.672 with environmental performance. the correlations indicate that as organizational commitment increased, so did the favorable perceptions of green hrm practices, employee engagement, job satisfaction, and environmental performance within the organization. additionally, environmental performance displayed positive correlations with green hrm practices (0.490), employee engagement (0.445), and job satisfaction (0.559), indicating that enhancements in environmental performance were associated with positive perceptions of green hrm practices, employee engagement, and job satisfaction. table 2. correlation analysis constructs 1 2 3 4 5 6 green hrm practices 1.000 employee engagement 0.440 1.000 job satisfaction 0.510 0.506 1.000 organizational commitment 0.400 0.378 0.570 1.000 environmental performance 0.596 0.431 0.471 0.672 1.000 organizational culture 0.637 0.490 0.445 0.559 0.555 1.000 the correlation table provided insights into the interrelationships between the constructs, demonstrating how changes in one construct often corresponded with changes in others. this helps to understand the dynamics within the organization and how these variables are interconnected. 6.2 vif and tolerance the analysis included the calculation of variance inflation factor (vif) and tolerance values to assess the presence of multicollinearity among the variables. the results indicated no issues of multicollinearity. the vif values for all variables were well below the commonly accepted threshold of 3, and the tolerance values were comfortably above 0.1. these findings confirmed that the independent variables (green hrm practices and organizational agbioforum, 25(2), 2023 | 102 cen — studying the impact of green human resource management practices on sustainable workforce … culture) were not highly correlated, ensuring the validity of the regression analyses and the reliability of parameter estimates, thus enhancing the interpretability of the results. 6.3 model fit indices to evaluate the overall fit of the structural equation model (sem) in this study, several model fit indices were examined. these assessments were conducted following the guidelines outlined by shmueli et al. (2019). these indices are used to assess how closely the model aligns with the observed data. the chi-square statistic (χ²) yielded a value of 464.57. a lower chi-square value indicates a better fit; however, it is important to consider that the chi-square statistic can be affected by sample size. the degrees of freedom (df) for our model were 122, reflecting the model's complexity. the chi-square/df ratio was calculated as 3.81, indicating a reasonably good fit. we also considered the comparative fit index (cfi) and the tucker-lewis index (tli or nnfi), which were found to be 0.95 and 0.93, respectively. cfi and tli/nnfi values close to 1, particularly above 0.90, signify a strong fit compared to a null model. the root mean square error of approximation (rmsea) was 0.08, slightly below the threshold of 0.08, indicating a favourable fit. the standardized root mean square residual (srmr) was 0.06, supporting a good fit. furthermore, the goodness of fit index (gfi) was 0.92, and the adjusted goodness of fit index (agfi) was 0.90, both surpassing the recommended threshold of 0.90 for a satisfactory fit. the normed chi-square statistic (χ²/df) was 1.46, close to 1, aligning with a well-fitting model. these fit indices collectively indicate a robust alignment between the proposed model and the observed data, emphasizing the appropriateness of our structural equation model. 6.4 hypothesis testing a regression analysis was performed using spss v. 25 to examine the hypothesized relationships. the results of the regression analysis confirmed significant associations between green hrm practices and various crucial outcomes. more specifically, the regression analysis showed a positive and statistically significant association between green hrm practices and job satisfaction, with β=0.200, t=3.031, and p=0.003, confirming the hypothesis (h1a). similarly, a positive and statistically significant relationship was observed between green hrm practices and organizational commitment, confirming hypothesis (h1b), with β=0.237, t=3.880, and p=0.001. furthermore, green hrm practices exhibited a robust positive relationship with environmental performance, providing strong support for hypothesis (h1c). this relationship was confirmed by a β=0.378, t=5.934, and a highly significant p-value of <0.001. moreover, the analysis revealed a statistically significant positive association between employee engagement and green hrm practices, supporting hypothesis (h2a). this relationship was established with a β=0.357, t=5.430, and a p-value of <0.001. furthermore, employee engagement had a significant positive influence on job satisfaction (h2b), with a β=0.211, t=3.459, and p=0.003. additionally, it positively impacted organizational commitment (h2c), with a β=0.255, t=4.450, and p<0.001, supporting the respective hypotheses. furthermore, employee engagement emerged as a significant driver of environmental performance (h3) with a β=0.389, t=6.342, and p<0.001, confirming the hypothesis. the analysis further explored the combined impact of green hrm practices, employee engagement, and organizational culture, revealing that organizational culture significantly influenced the relationship between green hrm practices and employee engagement (h5) with a β=0.189, t=2.870, and p=0.007, thereby supporting the hypothesis. furthermore, green hrm practices exhibited significant indirect effects on job satisfaction (h4a), organizational commitment (h4b), and environmental performance (h4c) through employee engagement, as evidenced by β values of 0.190, 0.270, and 0.412, accompanied by corresponding t-values and p-values. this confirms the hypothesized indirect relationships. finally, moderation hypothesis h5 explored the interaction between organizational culture and green hrm practices concerning employee engagement. the analysis yielded a statistically significant positive interaction effect, with β = 0.189, t = 2.870, and p = 0.007, thereby substantiating the empirical support for h5. table 3. regression results hyp. hypothesis beta (β) t-value p-value support h1a green hrm practices → job satisfaction 0.200 3.031 0.003 yes h1b green hrm practices → organizational commitment 0.237 3.880 0.001 yes h1c green hrm practices → environmental performance 0.378 5.934 <0.001 yes h2a green hrm practices → employee engagement 0.357 5.430 <0.001 yes h2b employee engagement → job satisfaction 0.211 3.459 0.003 yes h2c employee engagement → organizational commitment 0.255 4.450 <0.001 yes h3 employee engagement → environmental performance 0.389 6.342 <0.001 yes h4a green hrm practices → employee engagement → job satisfaction 0.190 2.965 0.005 yes h4b green hrm practices → employee engagement → organizational commitment 0.270 4.789 <0.001 yes h4c green hrm practices → employee engagement → environmental performance 0.412 7.023 <0.001 yes h5 organizational culture*green hrm practices → employee engagement 0.189 2.870 0.007 yes 7. findings the regression analysis results confirm the positive relationships between green hrm practices and job satisfaction, organizational commitment, and environmental performance. this aligns with prior research, suggesting that involving employees in sustainability initiatives enhances their job satisfaction (ngo & ngo, 2023). employees' perceptions of their organization's commitment to environmental sustainability can foster a positive work agbioforum, 25(2), 2023 | 103 cen — studying the impact of green human resource management practices on sustainable workforce … environment and heightened job satisfaction. additionally, the observed positive association between green hrm practices and organizational commitment is consistent with existing literature, where such practices signify ethical corporate behaviour. employees who identify with an environmentally responsible organization are more inclined to exhibit commitment to their workplace. this commitment may contribute to higher retention rates and a more engaged workforce (irani & kilic, 2022; suanda et al, 2023). similarly, the substantial influence of green hrm practices on environmental performance is congruent with prior scholarly work. the adoption of environmentally responsible hrm practices is associated with the potential reduction of resource utilization, waste production, and carbon emissions (renwick et al., 2016). consequently, this can bolster an organization's environmental achievements and contribute to its sustainability objectives. numerous investigations have underscored the favourable impact of such practices on a company's ecological standing. the examination unveiled a statistically significant and positive association between green hrm practices and employee engagement. this discovery aligns with the theoretical framework of the study, which posits that organizations adopting environmentally responsible hrm practices are more inclined to effectively engage their employees. the constructive influence of green hrm practices on employee engagement is in harmony with previous research highlighting the role of hrm practices in advancing environmental sustainability (ribeiro et al., 2022). the outcome underscores the significance of hrm in facilitating employee engagement, thereby contributing to the overall sustainability of the organization. the regression analysis revealed a notable positive impact of employee engagement on job satisfaction. engaged employees often derive higher job satisfaction, given their tendency to perceive their work as meaningful, fulfilling, and intrinsically motivating. this finding aligns with prior research emphasizing the positive association between employee engagement and job satisfaction (quek et al., 2021). the observed association highlights the significance of promoting employee engagement as a strategy to bolster job satisfaction, thereby enhancing the overall well-being and job experiences of employees. furthermore, the results demonstrated a statistically significant positive relationship between employee engagement and organizational commitment. engaged employees typically display higher levels of commitment to their organizations, as they experience a sense of belonging, loyalty, and attachment. this finding aligns with previous research that underscores the role of engagement in cultivating organizational commitment. the positive correlation between employee engagement and organizational commitment aligns with previous research conducted by yuan, ye, and zhong (2021) which further revealed a significant positive relationship between employee engagement and environmental performance, reinforcing the notion that engaged employees are more inclined to actively participate in and support environmentally sustainable practices within their organizations. this finding underscores the importance of employee engagement in promoting environmental performance and sustainability. this observed relationship aligns with the conceptual framework of the study and is consistent with prior research emphasizing the crucial role of engaged employees in promoting environmentally responsible behaviours (begum, ashfaq, xia, & awan, 2022). the mediation analysis demonstrated the substantial mediating effect of employee engagement in the connections between green hrm practices and the consequences of job satisfaction, organizational commitment, and environmental performance. this mediation underscores that green hrm practices have a positive impact on boosting employee engagement, subsequently resulting in increased job satisfaction, heightened organizational commitment, and enhanced environmental performance. this outcome aligns with the study's theoretical framework and emphasizes the pivotal role of employee engagement as a conduit through which green hrm practices impact employees' welfare, allegiance to the organization, and backing for environmental sustainability. the moderation analysis unveiled the noteworthy moderating influence of organizational culture in the connection between green hrm practices and employee engagement. in settings where the organizational culture promotes environmentally responsible behaviours, the already positive impact of green hrm practices on employee engagement becomes significantly more potent. conversely, in organizations with a culture that does not prioritize sustainability or align with the principles of green hrm practices, the link between these practices and employee engagement is attenuated. this discovery highlights the critical role of a supportive organizational culture in amplifying the beneficial effects of green hrm practices. it aligns with prior research that underscores the substantial influence of organizational culture on shaping employees' attitudes and behaviours (aggarwal & agarwala, 2023). 8. conclusion the findings of this study carry significant theoretical implications that enhance the broader comprehension of green hrm practices. this research contributes to the progressing domain of green hrm by empirically confirming the positive influence of green hrm practices on employee engagement. the empirical evidence bolsters the theoretical underpinnings of green hrm, emphasizing its role in elevating employee engagement with environmental sustainability initiatives. this development aligns with the argument that green hrm goes beyond environmentally responsible practices; it represents a strategic approach influencing employees' attitudes, behaviours, and commitment to ecological stewardship. identifying employee engagement as a significant mediator between green hrm practices and outcomes such as job satisfaction, organizational commitment, and environmental performance enriches our understanding of how hrm practices impact employee and sustainabilityagbioforum, 25(2), 2023 | 104 cen — studying the impact of green human resource management practices on sustainable workforce … related results. this insight enhances the connection between hrm and sustainability literature, highlighting the pivotal role of engagement in promoting environmentally responsible behaviours and improving the employee experience. additionally, the study's discovery of organizational culture as a vital moderator in the relationship between green hrm practices and employee engagement advances our comprehension of contextual factors influencing hrm effectiveness. it emphasizes the significance of aligning organizational culture with green principles, underscoring culture's crucial role in amplifying or mitigating the impact of hrm initiatives. 9. contributions and implications the practical implications of this study are relevant to agriculture sector organizations, offering guidance on utilizing green hrm for sustainability and improved employee outcomes. these organizations should recognize the strategic value of adopting green hrm practices that go beyond compliance, actively engaging employees in environmental sustainability efforts. investing in green hrm can foster employee engagement, leading to more environmentally responsible behaviours and increased job satisfaction. prioritizing employee engagement that aligns with sustainability goals, through eco-friendly projects, training, and recognition of green initiatives, can strengthen sustainability efforts and enhance employee satisfaction and commitment. organizational culture, as a moderator, underscores the importance of cultivating a culture valuing sustainability and aligning with green hrm. organizations should intentionally promote a culture that supports environmentally responsible behaviours. this may encompass leadership commitment to sustainability, the promotion of eco-consciousness, and the integration of green principles into the organization's core values and mission. in the agriculture sector, organizations should contemplate adopting allencompassing sustainability initiatives that involve both hrm and environmental practices. this study underscores the crucial interplay between hrm and sustainability in achieving comprehensive sustainability objectives. by harmonizing hrm practices with sustainability goals, organizations can optimize their positive impact on employee engagement, job satisfaction, commitment, and environmental performance. 10. future research work subsequent research should delve into these associations within diverse contexts to gain a more comprehensive understanding of the context-specific nature of green hrm. data in this study were obtained via self-report questionnaires, possibly introducing common method bias. future research should consider employing multiple data sources, such as supervisor evaluations or objective performance data, to bolster the findings' validity. the study assumed that green hrm practices influence employee engagement, but a reverse causal relationship may exist, wherein engaged employees influence the adoption of green practices. 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resources play a vital role in this regard agriculture growth and environmental degradation in vietnam: do natural resources play a vital role in this regard ho ngoc cuong viet nam national university of agriculture (vnua), ha noi, viet nam. email: hongoccuonghn@gmail.com do thi man* hong duc university (hdu), thanh hoa province, viet nam. email: dothiman@hdu.edu.vn tran duc thuan dong nai technology university (dntu), bien hoa city, dong nai province, viet nam. email: tranducthuan@dntu.edu.vn nguyen cong tiep viet nam national university of agriculture (vnua), ha noi, viet nam. email: nctiep@vnua.edu.vn nguyen quang thuan central theoretical council, ha noi, viet nam. email: thuanq_2000@yahoo.com nguyen xuan diep thai nguyen university of economics and business administration (tueba), thai nguyen, viet nam. email: nguyenxuandiep@gmail.com vuong thi khanh huyen viet nam national university of agriculture (vnua), ha noi, viet nam. email: vuongthikhanhhuyen@gmail.com le thi thanh hao viet nam national university of agriculture (vnua), ha noi, viet nam. email: ltthao@vnua.edu.vn the growth of agriculture in vietnam has significantly transformed the country's socio-economic landscape, enhancing food security and boosting agricultural exports. however, this growth has also emerged as a leading contributor to environmental degradation. additionally, vietnam's rich natural resources, while facilitating economic development, have similarly played a pivotal role in environmental challenges. therefore, it is essential to re-evaluate the interplay between agricultural growth, natural resource exploitation, and environmental degradation. to address this, the current study employs the conventional stirpat (stochastic impacts by regression on population, affluence, and technology) framework to analyse the effects of agricultural growth and natural resources on environmental degradation, operationalized through co2 emissions in vietnam from 1990 to 2020. the research not only aims to estimate the direct impacts of these variables but also investigates the moderating influence of natural resources on the relationship between agricultural growth and environmental degradation. the methodology employed is the autoregressive distributed lag (ardl) bound test approach, which allows for an assessment of both short-term and long-term relationships among the variables. the findings indicate that agricultural growth exerts a positive and significant impact on co2 emissions in both the short and long term. conversely, the influence of natural resources on co2 emissions is found to be statistically significant and positive only in the short term. furthermore, the analysis reveals that the moderating effect of natural resources on the relationship between agricultural growth and co2 emissions is negative but statistically insignificant in both the short and long term. in light of these findings, the study suggests several policy recommendations aimed at achieving environmental sustainability in vietnam. these policies are designed to balance agricultural development with environmental conservation, ensuring that the benefits of economic growth do not come at the expense of ecological health. overall, this research contributes to the understanding of how agricultural practices and natural resource management impact environmental outcomes in vietnam, emphasizing the need for integrated approaches to promote sustainable development. keywords: agriculture growth, natural resources, co2 emissions, vietnam, ardl bound testing approach. introduction environmental degradation and climate change have become the serious issues due to higher atmospheric concentrations of greenhouse gases mainly the co2 emissions (ce) released by many anthropogenic activities such as industrialization, urbanization, deforestation and fossil fuel consumption (liu et al., 2022). the rapid increase in ce is expected to have various serious ramifications for the global environmental quality which posit various catastrophic impacts on all segments of the economy society (isfat & raihan, 2022). consequently, in order to promote sustainable development and lessen the adverse consequences of climate change, cutting ce and improving environmental quality have gained global attention (raihan, 2023). although all of the countries around the world are facing the problems resulting from climate change, the developing world is the most affected by climate change because it has less capacity for adaptation and less access to alternative resources for environmentally friendly production. vietnam is in a similar situation. vietnam is the most vulnerable country to environmental degradation and global warming because of its dependence on agriculture, forestry and natural resource extraction (huong et al., 2019). the vietnam’s economy is a rapidly expanding south east asian economy that has achieved amazing growth over the years. in the future years, vietnam's economy is expected to grow significantly as it is pursuing the goal to become a modern industrialized and one of the high-middle income countries in the world by the year 2035. however, in pursuing this goal, the country is causing significant challenges for global environmental sustainability. according to global carbon atlas (2021), vietnam is one of the top polluting countries of the world. the world bank statistics reveal that the level of per capita emission has been continuously rising in vietnam over the years (as shown in figure 1), emitting approximately 5 metric tons in 2021. because of this, the country's efforts to achieve environmental sustainability are severely hampered (nguyen & le, 2022). mailto:hongoccuonghn@gmail.com mailto:dothiman@hdu.edu.vn mailto:tranducthuan@dntu.edu.vn mailto:nctiep@vnua.edu.vn mailto:thuanq_2000@yahoo.com mailto:nguyenxuandiep@gmail.com mailto:vuongthikhanhhuyen@gmail.com mailto:ltthao@vnua.edu.vn agbioforum, 26(1), 2024 | 156 cuong et al. — agriculture growth and environmental degradation in vietnam: do natural resources play a vital role in this regard figure 1: co2 emissions in vietnam over 1990 to 2020 period. previously, the literature has documented several determinants of environmental degradation such as fdi, globalization, energy consumption, urbanization etc., (farooq et al., 2022; lin et al., 2022; muhammad et al., 2021; sadorsky, 2014). similarly, agriculture growth (agrig), besides being a victim of environmental degradation, also plays a significant role in environmental degradation. the agriculture sector has both positive and negative impact on environmental quality. the use of agriculture innovations and technology increases agriculture productivity and environmental sustainability. oxygen production and provision of natural life are also among the positive effects of agriculture. on the other hand, negative impacts of agriculture on environmental quality from the use of chemical fertilizers, pesticides, burning grass, soil farming, etc. are becoming evident (ali et al., 2022). according to u.s. emission inventory statistics, the agriculture sector emits approximately 8% of the ghg emissions resulting from methane and nitrous oxide from livestock production and soil management practices. the agriculture sector produces between 14 percent and 30 percent of global ghg emissions by using intensive fossil fuel for irrigation and water pumping and using fertilizers high in nitrogen (waheed et al., 2018). likewise, the economic activities are responsible for massive extraction and use of natural resources (ntr) which raise serious environmental concerns. unsustainable resource usage causes serious environmental issues like deforestation, water scarcity, and climate change in both developed and developing economies (baloch et al., 2019).the extraction of ntr require a lot of energy and the resulting waste chemicals are improperly disposed-off in the air, water, and land, which lead to environmental degradation (kwakwa et al., 2020). in view of the discussion above, the study aims to empirically evaluate the role of agrig and ntr in environmental degradation in vietnam over 1990 to 2020 period. agriculture sector is one of the major sectors in vietnam contributing about 1/5th of the gdp, employing about 50% of the workforce and providing income to 3/4 of the vietnamese population (trinh et al., 2018). for most households, agriculture is the main source of income, and its productivity is reliant on the exploitation of natural resources (huong et al., 2019). however, the use of old fashioned techniques in farming, low literacy and inadequate transportation and infrastructure development, has not only declined the growth of agriculture sector over the years (see figure 2), but also contributed to climate sensitivity of the country. likewise, being abundant with variety of ntr such as woods, coal, oil, gas and bauxite, diversity in fauna and flora, vietnam has reaped several benefits from the use of ntr. vietnam is a major producer of coal and has the third largest coal power plant of the world after india and china. vietnam's coal production reached 48.4 million metric tons in 2020 and 31% of the workers in mining and quarrying are working in coal mining (tran et al., 2023). however, the country faces ntr depletion due economic expansion as shown in figure 2 which may restrict the growth potential of the economy and raise serious concerns for the environmental quality. therefore, it is necessary to identify the significant and practicable solutions for mitigating the rising ce. as a result, it is pertinent to analyse the role of ntr and agrig in environmental degradation in vietnam. the impact assessment of ntr and agrig would help in explaining the issues and the timely formulation of plans to respond the issue immediately (huong et al., 2019). 0 0.5 1 1.5 2 2.5 3 3.5 4 1990199219941996199820002002200420062008201020122014201620182020 co2 emissions agbioforum, 26(1), 2024 | 157 cuong et al. — agriculture growth and environmental degradation in vietnam: do natural resources play a vital role in this regard figure 2: agriculture expansion and natural resource consumption in vietnam (1990 to 2020). the study contributes to the literature as follows: first, to the author’s best knowledge, the effect of ntr and agrig on environmental degradation has been extensively studied previously in the context of different countries, but not enough attention was paid for the empirical evaluation of these factors in vietnam. therefore, a fresh insight on the pertinent effect of ntr and agrig on environmental degradation would enrich the limited literature in the context of vietnam. second, in previous studies, the individual impact of ntr and agrig on ce has been explored, however, to the best of the author’s knowledge, none of the existing studies have evaluated the joint impact of agrig and ntr on ce. the present study enriches the body of literature by estimating to moderating role of ntr in agrig and ce relationship. the abundance of ntr can provide significant support to agriculture sector. the availability of ntr such as fertile land, mineral resources such as potassium and phosphorous increases the productivity and yield of the products. significant quantities of these minerals can provide farmers with a significant advantage and ultimately boost agricultural output (ren et al., 2023). interestingly, the way ntr affects the relationship between agrig and ce is not known yet. therefore, the one of the primary goals of the present study is to empirically assess the moderating role of ntr in agrig and ce relationship as evaluating this moderation effect would enable the researchers to assess the individual and joint effect of ntr and agri on ce. the basic research questions to be answered by the study are as follows: a. what is the effect of agrig on environmental degradation in vietnam? b. what is the effect of ntr on environmental degradation in vietnam? c. how ntr moderates the relationship between agrig and environmental degradation in vietnam? the rest of the study is structured as follows: section 2 provides the review of previous literature. data and econometric technique is given in section 3. section 4 gives results and their discussion and chapter 5 provides conclusion and policy recommendations. literature review this section of the study is divided into 2 sub sections to provide a brief review of the past studies related to the role of agrig and ntr in environmental degradation as follows: agriculture growth and environmental degradation considering its relevance, a number of researchers have examined the agriculture sector's role in environmental degradation. taking multiple case studies, different countries, regions, the outcomes of the studies provided mixed outcomes on the effect of agrig on ce. some of the researchers found it to be the culprit for environmental degradation, while others have concluded it to be environmentally friendly (usman et al., 2022). for instance, considering the south asian countries, usman et al. (2022) examined the effect of agriculture value added on environmental degradation over 1995 to 2017 period. fmols estimation approach was used and it was found that agriculture value added promoted ce in south asian countries. likewise, agboola & bekun (2019) analyzed the impact of agriculture on ce and tested the validity of agriculture induced ekc hypothesis in nigeria over 1981 to 2017 period. according to the findings of ardl bound testing approach and bayer and hanck combined cointegration technique, an inverted u-shaped ekc hypothesis was found to exist in nigeria, showing that agriculture production initially increased and later reduced ce. similarly, gurbuz et al. (2021) in case of azerbaijan empirically tested the agriculture value added and ce relationship over 1992 to 2014. the outcomes of ardl approach indicated that agriculture production reduced ce. in continuation, taking the panel of belt and road initiative (bri) economies, hafeez et al. (2020) examined 0 10 20 30 40 50 60 natural resource rents argicultural value added agbioforum, 26(1), 2024 | 158 cuong et al. — agriculture growth and environmental degradation in vietnam: do natural resources play a vital role in this regard the impact of agriculture on environmental degradation over 1980 to 2017 period. applying dols and fmols estimation approaches, the results revealed that agriculture increased environmental degradation. in case of zambia, phiri et al. (2021) studied the agriculture value added and ce relationship over 1975 to 2014 period. the results of ardl approach revealed that agriculture value added promoted ce in zambia. likewise, balogh (2022) studied the role of agriculture in ce in non-european countries over 2000 to 2018 period. using fmols and dols regression approaches, the study found that agriculture contributed to increase ce in selected countries. natural resources, agriculture growth and environmental degradation environmental quality has also declined as a result of human-caused resource depletion brought by social and economic activity (iqbal et al., 2022). therefore, over past several decades, the ntr and ce nexus has been the focus of attention among researchers, but like agrig, academicians and researchers did not reach any definite conclusion. such as khan et al. (2020) analyzed the effect of ntr on ce in 51 bri economies over 1990 to 2016 period. applying system gmm approach, the authors found ntr increased ce in selected countries. iqbal et al. (2022) studied the impact of ntr on ce in pakistan over 1980 to 2017 period. nardl estimation approach revealed that ntr reduced ce. likewise for developing countries, jahanger et al. (2023) studied the role of ntr in environmental degradation over 1990 to 2018 period. 3sls estimation technique was used in the study. according to the findings, ntr significantly reduced ce in developing countries. similarly, hung (2022) studied the impact of ntr on ce in vietnam for the period 1990 to 2019. using wavelet coherence approach, ntr was found to reduce ce in vietnam. in case of asean countries, nguyen et al. (2023) analyzed the impact of ntr on ce. according to the results of panel quantile regression, ntr was found to increase ce. in case of pakistan, hanif et al. (2022) studied the nexus between ntr and ce using var approach. the outcomes revealed that ntr increased ce in pakistan. gyamfi et al. (2022) analyzed the effect of ntr rents on environmental degradation in g-7 countries over 1990 to 2016 period. using fmols, dols and amg techniques, the authors found ntr to promote the environmental degradation in selected countries. for developed, developing, brics and global panel of economies, muhammad et al. (2021) empirically studied the role of ntr in ce over 1991 to 2018 period. using dynamic fixed effects model and system gmm estimation techniques, ntr was found to enhance ce in all panels of the countries. however, the impact of ntr on agrig did not get attention of the researcher so far. out of limited studies which explored the relationship between these two factors, chopra et al. (2022) studied the role of ntr in agrig in asean countries. the authors found that ntr decreased agrig in the selected countries. for china, ren et al. (2023) analyzed the relationship between ntr and green growth in agriculture sector over 1970 to 2021 period. using beysian regression analysis, the authors found that ntr reduced green growth in agriculture sector in china. literature gap the review of the available literature reveals that the role of ntr and agrig in environmental degradation is not sufficiently covered for vietnam in previous literature. moreover, whether ntr moderates the relationship between agrig and environmental degradation is unexplored in the literature. therefore, the present study aims to fill these gaps by analysing the role of ntr and agrig in environmental degradation as well as the moderating role of ntr in ntr and environmental degradation nexus in vietnam. data and methodology the study estimates the impact of agrig and ntr on environmental degradation in vietnam. for this purpose, time series data from 1990 to 2020 period is taken and the widely used stochastic impact by regression on affluence, population and technology (stirpat) framework provides basis for the model specification. stirpat model proposed by york & rosa (2003) considers that environmental quality is influenced by three important factors namely population, affluence and technology. the basic form of the model is represented as follows: i=p.a.t (1) where, i represents environmental impact, p represents population, a denotes affluence and t represents technology in the above equation. linking this model to the present study, we measure i by co2 emissions, population by urban population, technology by technology innovations and affluence by economic growth measured by gdp. one of the main advantages of the stirpat model is its flexibility to add other important factors affecting the environmental quality (liao et al., 2024). therefore, the present study extends the conventional stirpat model by adding agrig and ntr by taking the support from hung (2022), nguyen et al. (2023), hafeez et al. (2020) and usman et al. (2022). the study has formulated the basic model with understudy variables as follows: co2 = f (agrig, ntr, gdp, urb, ti, ntr*agrig) (2) and the econometric form of the model is expressed as follows: 𝐶𝑂2𝑡 = 𝛽0 + 𝛽1𝐴𝐺𝑅𝐼𝐺𝑡 + 𝛽2𝑁𝑅𝑡 + 𝛽3𝐺𝐷𝑃𝑡 + 𝛽4𝑇𝐼𝑡 + 𝛽5𝑈𝑅𝐵𝑡 + 𝛽6𝑁𝑅 ∗ 𝐴𝐺𝑅𝐼𝐺𝑡 + 휀𝑡 (3) the detailed description of the variables is given in table 1. table 1: operational measurement and data sources of the variables. variables abbreviation measurement data source environmental degradation co2 co2 emissions (metric tons per capita) wdi agriculture growth agrig agriculture, fishing and forestry value added (% of gdp) wdi natural resources ntr total natural resource rents (% of gdp) wdi urbanization urb urban population growth (annual percentage) wdi technology innovations ti no of patents, residents wdi agbioforum, 26(1), 2024 | 159 cuong et al. — agriculture growth and environmental degradation in vietnam: do natural resources play a vital role in this regard econometric method autoregressive distributed lag bond testing technique (ardl) proposed by (pesaran et al., 2001) is used in the present study as it is one of the most commonly used cointegration techniques in the literature. this technique can be used for assessing both the short-run and the long run results and therefore has number of advantages over other co-integration methods. this approach, for instance, works better with small-scale observational studies and can be used when the variables of the study have any order of integration. the ardl approach is used in this study in consideration of the benefits which is based on the following equations. ∆𝐶𝑂2𝑡 = 𝛼0 + 𝛽1𝐶𝑂2𝑡 + 𝛽2𝐴𝐺𝑅𝐼𝐺𝑡 + 𝛽3𝑁𝑅𝑡 + 𝛽4𝐺𝐷𝑃𝑡 + 𝛽5𝑈𝑅𝐵𝑡 + 𝛽6𝑇𝐼𝑡 + 𝛽7𝑁𝑅 ∗ 𝐴𝐺𝑅𝐼𝐺𝑡 + ∑ 𝛿1𝐴𝐺𝑅𝐼𝐺𝑡 𝑝1 𝑖=0 + ∑ 𝛿2𝑁𝑅𝑡 𝑝2 𝑖=0 + ∑ 𝛿3𝐺𝐷𝑃𝑡 𝑝3 𝑖=0 + ∑ 𝛿4𝑈𝑅𝐵𝑡 𝑝4 𝑖=0 + ∑ 𝛿5𝑇𝐼𝑡 𝑝5 𝑖=0 + ∑ 𝛿6𝑁𝑅 ∗ 𝐴𝐺𝑅𝐼𝐺𝑡 𝑝6 𝑖=0 + 휀𝑡 (4) in equation (4), δ shows the first difference, the short run dynamics of ardl equation is shown by δi and βis are the parameters. the short-run and long-run parameters can be illustrated using this ardl equation. 𝐶𝑂2𝑡 = 𝛼 + ∑ 𝑛1𝐶𝑂2𝑡−1 + ∑ 𝑛2𝐴𝐺𝑅𝐼𝐺𝑡−1 + 𝑝2 𝑖=1 𝑝1 𝑖=1 ∑ 𝑛3𝑁𝑅𝑡−1 + ∑ 𝑛4𝐺𝐷𝑃𝑡−1 + ∑ 𝑛5𝑈𝑅𝐵𝑡−1 + 𝑝5 𝑖=1 𝑝4 𝑖=1 𝑝3 𝑖=1 ∑ 𝑛6𝑇𝐼𝑡−1 + ∑ 𝑛7𝑁𝑅 ∗ 𝐴𝐺𝑅𝐼𝐺𝑡−1 𝑝7 𝑖=1 𝑝6 𝑖=1 +휀𝑡 (5) the ardl long-run equation shown above describes the long-term relationships between the variables. ∆𝐶𝑂2𝑡 = 𝛼 + ∑ 𝛾1∆𝐶𝑂2𝑡−1 + ∑ 𝛾2∆𝐴𝐺𝑅𝐼𝐺𝑡−1 + 𝑝2 𝑖=1 𝑝1 𝑖=1 ∑ 𝛾3∆𝑁𝑅𝑡−1 + ∑ 𝛾4∆𝐺𝐷𝑃𝑡−1 + ∑ 𝛾5∆𝑈𝑅𝐵𝑡−1 + 𝑝5 𝑖=1 𝑝4 𝑖=1 𝑝3 𝑖=1 ∑ 𝛾6𝑇∆𝐼𝑡−1 + ∑ 𝛾7∆𝑁𝑅 ∗ 𝐴𝐺𝑅𝐼𝐺𝑡−1 𝑝7 𝑖=1 𝑝6 𝑖=1 + 𝜔𝐸𝐶𝑀𝑡−1+ 휀𝑡 (6) the short run relationship between dependent and independent variables is given in equation (6). the ecm value in the short-run equation indicates the adjustment speed and divergent and convergent from the long term equilibrium. the value of ecm must be negative, statistically significant and must have the value less than 1. the negative value of ecm shows the convergence positive sign shows the divergence of the model from long-run equilibrium (azam et al., 2019). moreover, to check the validity and accuracy of the regression model, we apply some diagnostic tests as well including residual normality, serial correlation and heteroscedasticity tests. additionally, the cusum and cusumsq tests are performed to verify the model's stability. results and discussion first of all, the summary statistics of all data series are given in table 2. as per the findings, all of the series have positive mean values and the highest mean value is reported for ti and lowest for co2 emissions. the findings of standard deviation show that agri has the highest variability about mean while urb has the lowest variability about mean. moreover, jb statistics indicate that only co2, urb and ti have normal distribution. next, before proceeding to empirical estimation, it is mandatory to check the stationarity or unit root characteristics of the variables of the study. the application of ardl bound testing approach does not require any strict order of integration to be followed by the variables. the findings of the adf and pp unit root tests are given in table 3. according to the results, all of the series are integrated of order 1. at level, the series contain unit root, but become stationary after taking the first difference. after analysing the order of integration of the data series, the next step involves finding the presence of long run integration among study variables. for this, ardl bound test is used. according to the results, f-statistics is found to be greater than upper bound critical values at all significance level. this indicates that all of the selected variables are co-integrated. the findings of long run ardl estimation are given in table 4 which shows the changes in the dependent variable resulting from the changes in independent variables. the long run findings predict long run relationship between dependent and independent variables. table 2: descriptive or summary statistics. variables mean standard deviation minimum value maximum value j-b statistics co2 1.322 0.958 0.288 3.676 4.648* agri 21.603 20.413 11.784 40.489 3.209 ntr 7.402 3.230 1.810 13.919 0.815 gdp 1.4911 8.281 4.511 3.24 2.673 urb 3.288 0.293 2.831 4.008 5.755* ti 250.48 262.24 22.00 1021.0 7.373** table 3: adf and pp unit root tests. at level adf pp decision co2 3.382 5.464 agri -1.636 -4.880*** ntr -1.800 -1.709 gdp 9.729 12.423 urb -2.225 -2.145* ti 4.655 4.080 at first difference co2 -3.224** -3.273** i(1) agri -7.781 ------i(0) ntr -7.048*** -7.032 i(1) gdp -3.466* -3.689 i(1) urb -3.862* -3.845* i(1) ti -4.844** -3.679* i(1) where, ***, ** & * denote p=0.00, p<0.05 and p>0.05, respectively. agbioforum, 26(1), 2024 | 160 cuong et al. — agriculture growth and environmental degradation in vietnam: do natural resources play a vital role in this regard table 4: results of ardl bound test. statistics value k f-stat 6.168 6 critical values significance i(0) i(1) 10% 1.99 2.94 5% 2.27 3.28 2.5% 2.55 3.61 1% 2.88 3.99 table 5: results of long-run ardl estimation. coefficient p-value agri 0.148** 0.037 ntr 0.108 0.259 ntr*agri -0.005 0.266 gdp 2.071** 0.002 urb 0.054 0.885 ti -0.003** 0.023 where, ** denotes p>0.01 the findings of the long run estimation reveal that agri has significant positive impact on ce in vietnam. a unit increase in agri is found to increase ce by 0.148 units in the long run. the finding is consistent with usman et al. (2022), hafeez et al. (2020) and balogh (2022). thus, increase in agri is associated with rise in ce in vietnam. likewise, the long run findings reveal that ntr positively impact ce, but the effect is insignificant in the long run. for a unit increase in ntr, ce increases by 0.108 units. the findings are in-line with shen et al. (2021), muhammad et al. (2021) and ali et al. (2021) who suggest that ntr has positive relationship with ce. likewise, urb also has insignificant and positive impact on ce in long run consistent with the earlier estimations of sadorsky (2014) and muhammad et al. (2020). a unit rise in urb leads to 0.054 units increase in ce. likewise, the impact of gdp on ce is statistically significant and positive in the long run. a unit increase in gdp is found to increase the level of ce by 2.07 units. the findings of ali et al. (2021) and hassan et al. (2019) also suggest that gdp has the positive impact on ce. however, the long run results indicate that ti significantly reduces ce in long run as the effect of ti is evident to be negative on ce. in terms of the magnitude of the coefficient, a 1 unit increase in ti reduces ce by 0.003 units. previously, the findings of chen & lee (2020), wang & zhu (2020) and chhabra et al. (2022) strongly support our findings by arguing that ti reduce ce. after long run estimation, the findings of ardl in short run are given in table 5. first of all, the error correction term (ecm) fulfils all the three requirements, i.e., it is negative, statistically significant and the value of the coefficient is less than 1. specifically, the ecm value which is 0.727 indicates that the adjustment speed towards long run equilibrium is 72% and the negative coefficient indicates that model would eventually reach towards long run equilibrium. moreover, all of the variables have statistically significant impact on ce in short run. table 6: results of short run ardl estimation. series co-eff t-stat pvalue ecm -0.727*** -8.986 0.000 agri ntr ntr*agri gdp 0.097*** 0.061*** -0.0011 4.9511*** -8.110 6.873 -0.370 6.431 0.000 0.000 0.715 0.000 urb 0.704** 4.150 0.0016 ti 0.0018** 4.175 0.0015 where, *** and ** indicate significance at 1 and 5% respectively. the findings indicate that agri has statistically significant and positive impact on ce in the short run. this indicates that agri promotes environmental degradation in vietnam. the possible justification of this positive impact is the use of machinery in agriculture production, which consumes large amount of the energy mainly derived from fossil fuels which is responsible for increasing the level of ce. likewise, the methane and nitrous oxide produced from soil management and livestock practices are also the reasons for ce. moreover, the use of nitrogen-rich fertilizer by farmers in agriculture sector is a major contributor to ce (waheed et al., 2018). second, the coefficient of ntr is significant and positive in the short run. this outcome reveals that ntr significantly enhances ce in vietnam. this finding can be justified as the ntr extraction activities are usually unsafe and pollution causing. moreover, unsafe extraction activities makes the regrowth of ntr unable which causes bio-diversity to decline and increase in environmental degradation (hanif et al., 2022). third, the interaction term ntr*agrig is revealed to be statistically insignificant and having a negative sign in the short run ardl estimation (see table 6). this indicates that although both ntr and agrig individually impact agbioforum, 26(1), 2024 | 161 cuong et al. — agriculture growth and environmental degradation in vietnam: do natural resources play a vital role in this regard ce positively, their joint impact on ce is negative. this implies that when the moderating role of ntr is introduced in the regression, it reduces the negative impact of agrig on ce. this is because the availability of renewable natural resources can prevent the use of fossil fuels in several agriculture activities such as pumping water for livestock or irrigation, lighting the farm buildings, processing operations etc. which reduces its detrimental impacts on ce (ali et al., 2012). as far as the control variables are concerned, the coefficient of gdp is statistically significant and positive in the short run, indicating that gdp is the leading cause of higher ce. this finding is consistent with the phenomenon observed in several developing countries where the rapid industrialization linked with higher gdp leads to higher demand for energy, mainly fulfilled by fossil fuels. increased emissions are a result of the transportation sector's expansion as well as population growth and changing patterns of consumption which result from increase in gdp. furthermore, the environmental impact is increased by the expansion of energy-intensive infrastructure and the restricted adoption of clean technology (maulidar et al., 2024). second, urb is also found to have a statistically significant and positive impact on ce in the short run. this outcome justifies that urb increases the need for shelter, food, transportation, use of land, and energy consumption. these demands create major environmental problems like waste management, traffic congestion, and sanitation problems, among other things, which have a negative impact on both the environment and human health (shahbaz et al., 2017). and last, ti has statistically significant and positive impact on ce in short run in vietnam. in contrast to long run, ti is found to contribute to ce in the short run. this unexpected finding can be justified by the role of ti in increasing the employment level, improving the living standard and business development. the increased production and business activities contribute significantly to rise in ce (su et al., 2021). after short run and the long run ardl estimation, some diagnostic tests are applied to prove the validity of the outcomes. the results of diagnostics tests are given in table 7. the statistics of all diagnostics are found to be statistically insignificant which shows that there is no problem of serial correlation, heteroscedasticity and non-normality of residuals. overall, these findings imply that the model is statistically robust, with well-fitting parameters and assumptions staying true a perfect combination for analysis's prediction precision and reliability. moreover, the cusum and cusumq tests provide the probability value less than 0.05, which confirms the stability of the coefficients of the model over time (see figure 3). table 7: results of diagnostics tests. tests coefficient p-value decision breusch-godfrey lm test 1.226 0.338 absence of serial correlation jarque-bera 0.667 0.716 residuals have normal distribution breusch-pagan-godfrey test 0.589 0.841 absence of heteroscedasticity -10.0 -7.5 -5.0 -2.5 0.0 2.5 5.0 7.5 10.0 21 22 23 24 25 26 27 28 29 30 31 cusum 5% significance -0.4 0.0 0.4 0.8 1.2 1.6 21 22 23 24 25 26 27 28 29 30 31 cusum of squares 5% significance figure 3: cusum and cusumsq tests for parameter stability. conclusion and recommendations the present study analyses the role of agrig in environmental degradation under the moderating effect of ntr in vietnam under the conventional stirpat framework. to estimate the interdependencies among the variables, time series data spanning over 1990 to 2020 is analyzed by applying ardl bound testing approach as the results of adf and pp unit root tests indicate the series to be integrated of order 1. based on the long run and short run findings of ardl estimation, agrig has the significant positive effect on ce. the impact of ntr is evident to be positive and significant only in the short run but has insignificant impact on ce in the long run. moreover, the moderating role of ntr in agrig and ce relationship was evident to be negative but statistically insignificant in the short and the long run. thus the study concludes that both agrig and ntr enhance ce in vietnam and ntr does not significantly reduce the positive effect of agrig on carbon emissions. the outcomes of the study have important policy recommendations on the basis of the findings. firstly, as agrig is evident to be harmful for environmental quality, the government should make major agriculture reforms in vietnam to reduce its detrimental effects such as the implementation of the policies aimed at curbing the use of agbioforum, 26(1), 2024 | 162 cuong et al. — agriculture growth and environmental degradation in vietnam: do natural resources play a vital role in this regard fossil fuels in agriculture activities, use of solar tube wells for irrigation, organic and tunnel farming etc., to control ce from agriculture sector production. to maintain sustainable farming and reduce emissions, excess fertilizer and pesticide use must be minimized, and green agriculture must be given priority. second, ntr also has a positive role in environmental degradation in vietnam, government must implement stringent policies to restraint the exploitation and extraction of resources that heavily cause environmental pollution. this would not only reduce environmental degradation but help in protecting renewable resources which can be utilized efficiently in energy sector and agriculture sector to curb the negative impact of agrig on environmental quality. the study has provided significant findings for vietnam, the significant limitations still exist. first, the study used yearly data for empirical estimation; future research studies can use monthly or weekly data to observe the effect of seasonal fluctuations. second, the study mainly focused on the impact of agrig and ntr on environmental degradation, future research studies can consider several other important determinants of environmental degradation such as green technology innovations, mineral resources, globalization, fdi, etc. to estimate their contribution to environmental degradation. third, several individual countries and panel of countries can be considered by future studies to provide a comprehensive analysis of the subject matter. furthermore, using advanced econometric techniques for cross country analysis and metropolitan comparisons could improve understanding in this 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(2023) report that habitat diversification reduces pest density and crop damage, with practices like flowering strips attracting beneficial insects to manage pests and reduce pesticide use. this approach also combats pesticide resistance, making indonesia's biodiversity-rich agricultural sector well-suited for its adoption. however, its success depends heavily on support from the agricultural sector (baker, green, & loker, 2020). the successful implementation of habitat management practices by farmers largely depends on agricultural policies, institutional frameworks, and resource availability. providing subsidies to encourage ecological farming, training on habitat management techniques, and conducting research on ipm can strengthen the link between habitat management and pest control. hunt, blackburn, & rowland (2019) argue that farmers are more likely to adopt habitat-based pest control methods in countries where agricultural policies emphasise sustainability. conversely, insufficient sector support, such as limited funding and inadequate technical assistance, poses challenges to sustaining habitat management strategies. integrating habitat management into national agricultural programmes and reinforcing its adoption through incentives can foster more effective pest control and facilitate a resilient and environmentally sustainable agricultural transition in indonesia. effective pest control is essential for sustaining key aspects of agricultural development, including yield stability, food security, and environmental health. proper management of pest populations not only enhances farmers' productivity and prevents crop losses but also promotes income stability and reduces dependence on costly chemical inputs. ahmad, muhammad, & sajjad (2020) highlight that sustainable pest control encompasses habitat management, biological control, and ipm strategies, fostering a balanced agricultural system where pest suppression does not compromise the ecosystem. research has shown that reducing pesticide dependence can sustain both effective pest control and long-term soil fertility, ultimately supporting biodiversity and improving water quality—key elements of sustainable agriculture. in indonesia, where agriculture remains vital for rural livelihoods, adopting eco-friendly pest management approaches contributes to https://orcid.org/0000000334827279 mailto:lamriasidauruk@yahoo.com https://orcid.org/0000000298995514 mailto:ernitha2005@yahoo.co.id https://orcid.org/0009000748392559 mailto:patricius_sipayung@yahoo.co.id agbioforum, 26(2), 2024 | 152 sidauruk et al — prospects habitat management to control pest population on annual plant to support sustainable agricultural… both economic and environmental sustainability. moreover, sustainable pest control practices are essential for building farm resilience against climate and market fluctuations (srivastav et al., 2021). the effectiveness of pest control plays a crucial mediating role in the relationship between habitat management and sustainable agricultural development. habitat management incorporates ecological strategies to promote biodiversity and natural pest suppression, which are pivotal for sustainable agriculture. the extent of pest population control determines the success of this approach. when habitat management significantly reduces pest populations, it creates favourable conditions for higher agricultural yields, lower input costs, and improved environmental health, all contributing to sustainability (redlich, martin, & steffan‐dewenter, 2021). integrated pest control measures within habitat management have been associated with enhanced long-term agricultural productivity. as staton et al. (2019) note, well-managed natural habitats often experience fewer pest outbreaks, greater pest suppression, and increased pollination services, resulting in higher crop quantity and quality. scaling up this strategy is particularly important in indonesia, where smallholder farmers rely heavily on annual crops. effective pest control within habitat management is essential for broader agricultural sustainability. policymakers and agricultural practitioners should recognise pest control as a critical link between habitat management and sustainable agricultural development to optimise outcomes in the farming sector. this study investigates habitat management with the primary objective of exploring its role in pest population control and its implications for sustainable agricultural development in indonesia. specifically, it examines whether habitat management directly influences pest control, how support from the agricultural sector moderates this relationship, and whether pest control mediates the link between habitat management and agricultural sustainability. despite the growing interest in ecological pest management, research on this topic in indonesia remains limited, particularly regarding the factors that determine the effectiveness of habitat management when institutional support is present. additionally, existing studies have not sufficiently explored the mediating role of pest control in the relationship between habitat management and sustainability. this study addresses these research gaps, contributing to a better understanding of sustainable pest control strategies and their long-term implications for agricultural resilience. the subsequent sections will present a literature review and outline the methods for data collection and analysis to evaluate the proposed relationships. literature review this study investigates the impact of habitat management on pest population control within indonesia's agricultural sector. habitat management plays a vital role in pest control by altering the agricultural landscape to favour the presence of natural pest enemies. this approach promotes biodiversity and ecological balance, reducing the need for chemical pesticides and supporting long-term pest suppression. research by altieri & nicholls (2019) demonstrates that diverse cropping systems, hedgerows, and vegetation strips provide favourable conditions for predators and parasitoids, enhancing biological pest control. similarly, he et al. (2019) indicate that increasing plant diversity within or around farmlands regulates pests by offering alternative food sources and shelter for beneficial insects. the presence of semi-natural habitats, such as flowering plants and cover crops, supports the abundance and effectiveness of natural enemies, thereby reducing pest outbreaks. fischbein & corley (2022) highlight that increasing the proportion of non-crop habitats enhances habitat complexity, which promotes the survival and foraging efficiency of biological control agents, leading to more stable pest control outcomes. evidence also suggests that habitat-based pest management improves crop health and productivity. farms adopting habitat management measures reportedly suffer less pest damage compared to those relying solely on chemical control (he et al., 2019). furthermore, habitat manipulation techniques, including intercropping and buffer zones, have been shown to enhance agricultural ecosystems' resilience to pest pressure and sustain natural enemy populations. these findings underscore the efficacy of habitat management in promoting sustainable pest control through natural predator enhancement. therefore, we say that, h1: habitat management has a positive impact on controlling pest population. this study also examines the moderating role of government support in the relationship between habitat management and pest control in indonesia. effective agricultural sector management is essential for successful habitat-based pest control, requiring resource provision, supportive policies, and farmer education. government subsidies, research funding, farmer training, and cooperatives are crucial in fostering adoption. zheng et al. (2019) highlight that financial incentives encourage farmers to adopt ecological farming practices, enhancing pest control effectiveness. without proper institutional support, transitioning from conventional pesticide-based methods to sustainable habitat management can be challenging. technical assistance and extension services further strengthen the habitat management-pest control link. angon et al. (2023) emphasise that well-trained farmers are more likely to implement habitat management effectively, preventing pest infestations. additionally, knowledge dissemination through training programmes increases awareness of biological pest control, enabling farmers to integrate habitat management strategies more successfully (tonle et al., 2024). this relationship is further influenced by policy frameworks that promote biodiversity-friendly pest management. government regulations encouraging ecological practices have been shown to increase farmer participation in habitat management initiatives, leading to reduced pesticide use. moreover, baker et al. (2020) suggest that robust institutional support can facilitate the long-term adoption of habitat-based pest control methods, integrating them into national agricultural development strategies. these findings highlight the significance of agricultural sector support in strengthening the impact of habitat agbioforum, 26(2), 2024 | 153 sidauruk et al — prospects habitat management to control pest population on annual plant to support sustainable agricultural… management on pest control. based on this, the following hypothesis is proposed, h2: agricultural sector support moderates the relation between habitat management and control pest population. this study also explores the impact of pest population control on sustainable agricultural development in indonesia. effective pest control is essential for sustaining agricultural productivity, ensuring crop health, stabilising yields, and reducing dependence on chemical inputs. subedi, poudel, & aryal (2023) affirm that pest management strategies which mitigate infestations support higher agricultural productivity, contributing to food security and economic stability. reduced pest irritation fosters crop resilience, enabling farmers to cultivate higherquality produce at lower costs, thereby promoting long-term agricultural sustainability. environmentally friendly pest control methods also help maintain ecological balance, minimising environmental harm. bueno et al. (2021) suggest that pesticide use can be further reduced through ipm strategies involving biological control and habitat management, decreasing soil and water contamination. ecological pest control methods also promote biodiversity by conserving beneficial insects and microorganisms, supporting sustainable farming practices (subedi et al., 2023). additionally, sustainable pest control measures offer economic advantages by reducing crop losses and lowering production costs, thus improving farmers' profitability and enabling investment in long-term agricultural improvements. heeb, jenner, & cock (2019) highlight that sustainable pest management enhances climate resilience by reducing the carbon footprint associated with chemical pesticide production and application. these findings underscore the critical role of pest population control in achieving sustainable agricultural development while maintaining environmental and economic stability. therefore, the following hypothesis is proposed, h3: control pest population has a positive impact on sustainable agricultural development. the study further examines the mediating role of pest population control in the relationship between habitat management and sustainable agricultural development in indonesia. habitat management and sustainable agricultural practices are interconnected through pest control, which mediates outcomes related to crop protection, reduced chemical dependence, and ecological stability. ratnadass et al. (2021) demonstrate that habitat management strategies such as intercropping and maintaining vegetation buffers foster the presence of natural pest predators, thereby enhancing pest suppression. research also indicates that employing ecological habitat management to regulate pest populations creates a more resilient agricultural system and promotes long-term sustainability. effective pest control through habitat management directly supports sustainable farming practices by reducing reliance on chemical pesticides. habitat-enhanced biological control has been associated with lower pesticide use, decreased soil and water contamination, and the conservation of biodiversity (shields et al., 2019). sustainable pest suppression also minimally disrupts beneficial insect populations, contributing to ecosystem stability and promoting longterm agricultural productivity. heeb et al. (2019) highlight that farms employing habitat-based pest management experience fewer crop losses and lower production costs, leading to higher profits and increased investments in sustainable farming practices. furthermore, reduced pest pressure enhances yield stability, enabling farmers to maintain consistent food production with minimal dependence on external inputs. these findings underscore the role of pest population control as a critical mediator, strengthening the relationship between habitat management and sustainable agricultural development by ensuring ecological viability, economic benefits, and environmental sustainability. consequently, the following hypothesis is proposed: h4: control pest population mediates the relation between habitat management and sustainable agricultural development. research methods this study investigates the impact of habitat management on pest population control and its implications for sustainable agricultural development in indonesia. additionally, it examines the moderating role of government agricultural sector support in the relationship between habitat management and pest population control. data were collected from farmers using survey questionnaires. the variables were measured using validated scales from previous studies: habitat management was assessed with five items from klefoth et al. (2023); pest population control was measured using six items adapted from lazaridou & michailidis (2023); agricultural sector support was evaluated with four items from zaremohzzabieh et al. (2022); and sustainable agricultural development was assessed with five items from taiwo, akinwole, & ogundepo (2024). the study involved farmers as respondents, selected through simple random sampling. surveys were distributed through personal visits, with 502 questionnaires initially disseminated. after a few days, 290 valid responses were collected, yielding a response rate of approximately 57.77 percent. data reliability and variable associations were examined using smart-pls, a widely employed tool for primary data analysis, particularly suited for complex models (hair jr, howard, & nitzl, 2020). the assessment of the measurement model involved two key components: convergent and discriminant validity. convergent validity was evaluated using several criteria. cronbach's alpha values above 0.70 indicated a strong correlation among items. composite reliability (cr) values above 0.70 further confirmed item reliability. factor loadings above 0.50 indicated strong item correlations, and average variance extracted (ave) values above 0.50 demonstrated sufficient shared variance among items (hair et al., 2017). additionally, the structural model was assessed to evaluate the associations among variables. the discriminant validity was assessed using multiple criteria. first, the fornell-larcker criterion required that a variable’s correlation with itself be higher than its correlations with other variables. cross-loadings were also agbioforum, 26(2), 2024 | 154 sidauruk et al — prospects habitat management to control pest population on annual plant to support sustainable agricultural… examined, with item correlations within their respective variables expected to be higher than with other variables. additionally, the heterotrait-monotrait (htmt) ratio was used, and values below 0.90 indicated acceptable discriminant validity (hair, gabriel, & patel, 2014). the structural model assessment highlighted the relationships between variables. beta values indicated the direction of relationships, with p-values below 0.05 and t-values above 1.96 suggesting statistically significant associations (hair jr et al., 2020). the study included four key variables: habitat management (hm) as a predictor, agricultural sector support (ass) as a moderator, control of pest population (cpp) as a mediator, and sustainable agricultural development (sad) as the dependent variable. figure 1 visually represents these relationships. figure 1: theoretical model. research findings the present study investigates the effect of habitat management on pest population control and its subsequent impact on sustainable agricultural development. additionally, it examines the moderating role of government agricultural sector support in the relationship between habitat management and pest population control. the study assesses convergent validity by examining the correlation between items. this was evaluated using cr and cronbach's alpha, both yielding values above 0.70. furthermore, the ave and factor loadings both exceeded 0.50, indicating strong item correlations. these results are presented in table 1 and visually represented in figure 2. table 1: convergent validity. constructs items loadings alpha cr ave agricultural sector support ass1 0.865 0.899 0.929 0.766 ass2 0.875 ass3 0.881 ass4 0.881 control of pest population cpp1 0.850 0.909 0.929 0.687 cpp2 0.808 cpp3 0.820 cpp4 0.863 cpp5 0.767 cpp6 0.861 habitat management hm1 0.588 0.832 0.858 0.552 hm2 0.678 hm3 0.871 hm4 0.860 hm5 0.677 sustainable agricultural development sad1 0.865 0.884 0.915 0.684 sad2 0.831 sad3 0.804 sad4 0.780 sad5 0.853 the study also evaluates discriminant validity to assess the correlation between variables. this was examined using the fornell-larcker criterion, which revealed that the values indicating correlations within the same construct were higher than those showing correlations with other constructs. these findings suggest a low correlation between variables, confirming discriminant validity. the results are presented in table 2. the study further evaluates discriminant validity through cross-loadings. the results reveal that the values indicating correlations within the same construct were higher than those showing correlations with other constructs. these findings confirm a low correlation between variables, ensuring discriminant validity. the results are presented in table 3. table 2: fornell larcker. ass cpp hm sad ass 0.875 cpp 0.397 0.829 hm 0.610 0.413 0.743 sad 0.422 0.516 0.474 0.827 habitat management control pest population sustainable agricultural development agricultural sector support agbioforum, 26(2), 2024 | 155 sidauruk et al — prospects habitat management to control pest population on annual plant to support sustainable agricultural… table 3: cross-loadings. ass cpp hm sad ass1 0.865 0.339 0.513 0.320 ass2 0.875 0.338 0.560 0.385 ass3 0.881 0.318 0.512 0.359 ass4 0.881 0.386 0.549 0.407 cpp1 0.343 0.850 0.348 0.441 cpp2 0.319 0.808 0.394 0.446 cpp3 0.337 0.820 0.339 0.407 cpp4 0.300 0.863 0.272 0.375 cpp5 0.359 0.767 0.403 0.476 cpp6 0.293 0.861 0.257 0.390 hm1 0.623 0.175 0.588 0.263 hm2 0.660 0.163 0.678 0.245 hm3 0.395 0.406 0.871 0.446 hm4 0.354 0.426 0.860 0.441 hm5 0.662 0.168 0.677 0.246 sad1 0.347 0.482 0.404 0.865 sad2 0.352 0.439 0.436 0.831 sad3 0.348 0.395 0.403 0.804 sad4 0.332 0.405 0.373 0.780 sad5 0.367 0.402 0.339 0.853 the study further assesses discriminant validity using the htmt ratio. the findings reveal that the values remained below the 0.90 threshold, indicating a low correlation between variables and confirming acceptable discriminant validity. these results are presented in table 4. moreover, the path analysis results revealed that habitat management positively influences pest population control, supporting h1. additionally, pest population control has a positive association with sustainable agricultural development in indonesia, supporting h3. the findings further demonstrated that government agricultural sector support significantly moderates the relationship between habitat management and pest population control, supporting h2. lastly, pest population control significantly mediates the relationship between habitat management and sustainable agricultural development in indonesia, supporting h4. these findings are presented in table 5 and figure 3. table 4: heterotrait monotrait ratio. ass cpp hm sad ass cpp 0.432 hm 0.805 0.389 sad 0.472 0.566 0.494 figure 2: measurement assessment model. table 5: path analysis relationships beta standard deviation t statistics p values ass -> cpp 0.302 0.068 4.464 0.000 cpp -> sad 0.516 0.046 11.092 0.000 hm -> cpp 0.306 0.081 3.800 0.000 ass x hm -> cpp 0.232 0.059 3.901 0.000 ass -> cpp -> sad 0.156 0.033 4.769 0.000 hm -> cpp -> sad 0.158 0.050 3.130 0.002 figure 3: structural assessment model. agbioforum, 26(2), 2024 | 156 sidauruk et al — prospects habitat management to control pest population on annual plant to support sustainable agricultural… discussion the research highlights that habitat management plays a critical role in controlling pest populations and promoting sustainable agricultural development in indonesia. with increasing concerns over pesticide pollution and habitat degradation, habitat management emerges as a viable alternative. the study investigates how habitat management contributes to pest regulation while exploring the moderating role of agricultural sector support and the mediating effect of pest control in fostering sustainable agricultural outcomes. understanding these relationships is crucial for developing ecological farming systems that safeguard indonesian agriculture from pests threatening national food security while enhancing resilience and functionality. the findings demonstrate that habitat management strategies create ecological conditions conducive to natural pest control. practices such as intercropping and the use of vegetation strips provide habitats for beneficial predators, reducing the need for chemical pesticides. bonato et al. (2023) confirm that mixed land-use areas effectively control pests through natural biological methods, lowering overall pest densities. additionally, sánchez-bayo & wyckhuys (2019) report that farms incorporating predator habitats as natural refuges experience fewer pest outbreaks, leading to improved crop yields. the study aligns with existing literature in underscoring the benefits of habitat management for pest control. given indonesia's prevalent monoculture farming practices, promoting habitat diversity could help reduce pest infestations, improve soil quality, and enhance biodiversity. the research also highlights the importance of agricultural sector support in the successful adoption of habitat management practices. institutional backing, including policy frameworks, financial assistance, and educational programmes, plays a vital role in encouraging farmers to adopt ecological pest control methods. norton & alwang (2020) found that government incentives and extension services promote the adoption of sustainable pest control techniques. similarly, deguine et al. (2021) emphasise that farmers are less likely to transition from conventional pesticide-based approaches to ecological alternatives without financial and technical support. to enhance adoption rates in indonesia, policy measures should prioritise habitat management subsidies and integrate farmer training with research initiatives. agricultural sector support creates environments that facilitate the adoption of habitatbased pest control strategies, reducing dependence on synthetic pesticides. providing adequate funding and access to knowledge resources empowers farmers to implement habitat management practices, thereby strengthening agricultural systems and promoting long-term sustainability. effective pest control is vital for sustainable agricultural development as it prevents crop losses, enhances yields, and safeguards the environment. the study highlights that pest monitoring practices contribute to long-term sustainability by maintaining soil health and reducing chemical inputs. baker et al. (2020) found that biological control methods within integrated pest management systems improve soil fertility and promote ecological stability, supporting sustainable agriculture. similarly, horgan & kudavidanage (2020) demonstrated that agricultural areas employing non-chemical pest control achieve higher yields and lower production costs compared to regions reliant on extensive pesticide use. these findings underscore the importance of adopting sustainable pest control practices to build resilient agricultural systems. small-scale farmers in indonesia can benefit significantly from implementing biological pest control methods, improving productivity while minimising environmental harm. reduced pesticide use helps preserve beneficial organisms, prevents soil degradation, and supports sustainable farming practices, thereby contributing to food security. the study also emphasises the crucial relationship between habitat management and sustainable agriculture, mediated by effective pest control methods. habitat management creates ecologically conducive environments for pest suppression, realising its full sustainability potential through effective pest management outcomes. by integrating habitat management practices, pest control becomes a fundamental mechanism for achieving long-term agricultural sustainability. previous studies, such as khan et al. (2023), demonstrate that habitat conservation-based pest management reduces reliance on chemical pesticides, resulting in improved environmental conditions and greater yield security. incorporating pest control methods into habitat management practices fosters ecological stability, preventing biodiversity loss while establishing sustainable agricultural systems (alyokhin, nault, & brown, 2020). consequently, this study suggests that raising awareness of pest control mediation in indonesia can optimise habitat management strategies, thereby enhancing agricultural sustainability. conclusion this study underscores the critical role of habitat management in pest control and the necessity of sustainable agricultural development in indonesia. the findings confirm that habitat management serves as an effective pest reduction strategy when ecological balance is enhanced and backed by agricultural sector support. beyond crop protection, effective pest management promotes long-term sustainability by reducing pesticide dependence and improving soil quality. additionally, the research highlights that pest control mediates the relationship between habitat management and agricultural sustainability, enabling the integration of ecological strategies with long-term productivity. the findings emphasise the need for policies and programmes that support habitat-based pest management to sustain productivity and conserve the environment. while the study makes valuable contributions, limitations remain, necessitating future research on other influencing factors. strengthening the relationship between habitat management, pest control, and sustainability could foster the development of resilient and sustainable agricultural systems in indonesia. implications the findings of this study offer significant insights for promoting sustainable agriculture and developing policies agbioforum, 26(2), 2024 | 157 sidauruk et al — prospects habitat management to control pest population on annual plant to support sustainable agricultural… that support ecological pest control. the research highlights the effectiveness of habitat management techniques in controlling pest populations, encouraging farmers to adopt ecological farming practices to reduce pesticide usage and enhance biodiversity. these insights provide policymakers with a foundation for creating supportive regulations, training programmes, and subsidies to facilitate the adoption of habitat-based pest control methods. incorporating habitat management strategies into agricultural extension services can further promote acceptance among farmers. the study underscores the need for increased institutional support from authorities to enhance pest control effectiveness at all levels. these strategies collectively contribute to agricultural sustainability, food security, and environmental conservation in indonesia over the long term. limitations this study has several limitations that must be acknowledged. its focus on habitat management and pest control within indonesia's specific agricultural context limits its generalisability to regions with different climatic, ecological, and socio-economic conditions. additionally, the reliance on available data may not fully capture longterm variations in pest populations and agricultural sustainability. the study also did not extensively explore critical factors such as farmer attitudes, financial constraints, and land use policies, which significantly influence the adoption of habitat management. future research should incorporate broader geographical scopes, long-term datasets, and supplementary variables to provide more comprehensive insights into sustainable pest control strategies. references ahmad, m., muhammad, w., & sajjad, a. 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universiti sains malaysia, 11800, penang, malaysia. orcid id: https://orcid.org/0000-0003-3462-4981 email: sab16@usm.my erce through authentic communication to mitigate the cognitive risks associated with green products. initially, the study examines the sources of perceived risk related to green products in the context of live streaming e-commerce. these sources include information asymmetry, the authenticity of environmental certifications, and the actual environmental impacts of the products. to build trust and credibility through authentic communication, the study proposes several strategies: presenting real cases and narratives, demonstrating the product usage process, responding to queries and addressing concerns, providing transparent information, and creating mechanisms for interaction and feedback. by fostering trust and credibility through authentic communication, it is possible effectively reduce consumers' perceived risks regarding green products in live e-commerce. keywords: live e-commerce, consumers, green products, perceived risk. introduction live-streaming e-commerce, as an emerging shopping model, has seen significant growth worldwide and has become a prominent trend within the contemporary ecommerce landscape. consumers engage with hosts who display products and facilitate interactive shopping through online live-streaming platforms, thereby generating increased purchase demand. with society's escalating concerns regarding environmental protection and sustainable development, the demand for green products is growing daily. within the live e-commerce context, consumer perception and cognition of green products have become critical issues. consumers' assessments of green products on live e-commerce platforms may encompass various risks, including product authenticity, the credibility of green labels, and the extent of concern for environmental protection and sustainability (fang, 2018; jia, 2019; jiang, 2019; jun, 2018; ye & jonilo, 2023). as global environmental challenges intensify, green products and sustainability have become integral to corporate sustainability strategies. in the realm of live e-commerce, promoting the green ethos and encouraging the consumption and production of green products has become a significant focus. consumer perceptions in live e-commerce substantially influence green products, affecting not only purchasing decisions but also corporate sales and brand image. in today's society, considerations of green products and sustainable development are essential for consumers when selecting products. consequently, understanding consumers' perceptions and cognitive risks associated with green products, as well as the role of live-streaming e-commerce in shaping these perceptions, is vital for companies aiming to develop effective marketing strategies, enhance product credibility, and cultivate a positive brand image. figure 01 illustrates the size and usage rates of e-commerce users from 2019 to 2022 (chen et al., 2022; guo et al., 2022; wang, 2020; zhang, xu, & liu, 2022; zhu & ahamat, 2023). the number of e-commerce users has been increasing annually, with usage rates also gradually rising. this article explores the role of green products in sales, development, and sustainable growth through e-commerce live streaming. it is anticipated in-depth research into these issues guide the sustainable development of green products within the live-streaming ecommerce industry and provide strategies and policies for relevant enterprises and government bodies to promote the consumption and production of green products. figure 1: e-commerce user size and utilization, 2019-2022. consumer perceptions of green products in live e-commerce definition of green products in live e-commerce, a green product defined as a product with a low environmental impact throughout the product life cycle, including the fact that the product should minimize adverse environmental effects during production, use, and disposal. in the production stage, green products should reduce energy consumption, waste, and pollutant emissions and follow environmental standards and sustainable production concepts. in the use phase, green products should be characterized by high efficiency, low energy consumption, and low emissions to reduce negative environmental impacts. at the same time, green products should be designed with the reuse and recycling of products in mind to minimize resource waste and damage to the natural environment (kim & peterson, 2017). consumers must well informed of these characteristics to https://orcid.org/0009-0009-7390-4645 https://orcid.org/0009-0003-0482-7160 https://orcid.org/0000-0003-3462-4981 mailto:sab16@usm.my agbioforum, 26(1), 2024 | 71 geng et al consumer perceived risk of green produce under live e-commerce identify better and select products that comply with the green concept. understanding the definition of green products enables consumers to make choices on live e-commerce platforms that align with environmental ideas, thereby promoting ecological awareness and the development of the market for environmentally friendly products (afaneh & bello, 2023; fichter, 2002; mcknight, choudhury, & kacmar, 2002; peng, ma, & zhang, 2021; qin, liu, & tian, 2021; yu, huo, & zhang, 2021; zhang & wei, 2024). enterprises should follow the definition of green products when promoting green products, provide accurate and reliable product information, and ensure that consumers' perceptions of green products match the actual environmental characteristics. by giving detailed ecological information and certification data, enterprises can enhance consumers' trust in green products, establish their environmental image, and promote the entire industrial chain in a more environmentally friendly and sustainable direction. defining the concept of green products is of great significance in promoting environmentally friendly consumption and production. it not only helps consumers choose environmentally friendly products correctly but also helps enterprises establish an image of sustainable development and, at the same time, promotes the development of the whole industrial chain in a more environmentally friendly and sustainable direction (bhatti & alzahrani, 2023; chiu & cho, 2021; geng et al., 2020; tsang et al., 2021; wang, somogyi, & charlebois, 2020a). factors influencing consumers' perceptions of green products in the live e-commerce process, consumer perception of green products shaped by a variety of factors. the authenticity and reliability of product information are particularly critical. when product information lacks authenticity or presents exaggerated claims regarding environmental benefits, consumers may become sceptical about the product's green attributes, which can ultimately reduce their purchase intentions. therefore, providing authentic and reliable product information is essential for enhancing consumer perception of green products. additionally, consumers often evaluate a product's environmental friendliness based on the ecological image of the live e-commerce platform or the company itself. many consumers seek out expert evaluations or third-party environmental certifications to verify a product’s environmental claims. such expert and third-party endorsements can significantly bolster consumer confidence in a product's ecological attributes. consequently, companies can improve the perceived ecological image of their products by securing expert recognition or obtaining third-party certifications (janjevic & winkenbach, 2020; li & li, 2022; sánchez-jara et al., 2023; sriyakul & chankoson, 2022). moreover, the level of environmental awareness and knowledge among consumers plays a vital role in shaping their perception of green products. individuals with greater environmental awareness and understanding are more likely to identify and choose genuinely green products. thus, initiatives aimed at educating consumers and enhancing their environmental knowledge can foster a more accurate perception of green products. social attention to environmental issues and prevailing public opinion also significantly influences consumer perceptions. when environmental matters become the focal point of societal discourse, consumers may exhibit heightened sensitivity towards the perception of green products. as such, companies can leverage public opinion and advertising to strengthen the ecological image of their products, thereby affecting consumer perceptions and purchasing decisions. figure 2 illustrates the business model of live e-commerce (almoussawi et al., 2022; boysen, de koster, & weidinger, 2019; wang et al., 2020b; wang et al., 2020c; wang, yu, & shen, 2019). in summary, multiple factors interact to shape consumer perceptions of green products. authentic and reliable product information, the ecological image of platforms and enterprises, expert and third party evaluations, individual ecological awareness and knowledge, as well as the social environment and public opinion, all play significant roles in influencing these perceptions. to promote a more accurate consumer understanding of green products, platforms and enterprises must consider these factors, provide truthful and reliable product information, and enhance environmental protection messaging. this approach will ultimately facilitate the development and wider acceptance of environmentally friendly products in the market. figure 2: flowchart of direct broadcast e-commerce business model. the role of live e-commerce in shaping consumer perceptions image building is essential in shaping consumer perception, and this is particularly true for green products on live ecommerce platforms. various factors influence consumers' perceptions of green products within this context. live broadcasting allows consumers to observe the product's usage, its actual effects, and its environmental characteristics directly, facilitating an intuitive understanding of its features and ecological attributes. this platform for information exchange and product display significantly enhances consumer awareness of green products. moreover, the introductions and interpretations provided by live streamers, as well as input from netizens and professionals during broadcasts, further deepen consumers' understanding and trust in green products. the interactive nature of live ecommerce platforms enables consumers to engage with the live host and other viewers through comments, questions, and pop-ups. this interaction allows users to share their experiences and knowledge about environmental protection, thereby enriching their understanding of green products. such communicative engagement not only enhances awareness of product characteristics but also improves transparency and agbioforum, 26(1), 2024 | 72 geng et al consumer perceived risk of green produce under live e-commerce trustworthiness. additionally, live e-commerce platforms frequently invite experts, scholars, environmental organisations, or industry associations to conduct product evaluations and ecological certifications. these authoritative assessments offer consumers accurate information and reliable references, thereby bolstering their confidence in the environmental claims of the products and enhancing their overall trust in green offerings. platforms also organise themed activities and special showcases for green products, as well as run campaigns to promote environmental knowledge. these initiatives help to raise consumer awareness about green products and stimulate interest in environmentally friendly options, thereby promoting the broader acceptance of such products in the live e-commerce arena. figure 3 presents a theoretical model of shopping on a live e-commerce platform, reflecting the psychology of the buyer (agag, 2019; kooshesh, kooshesh, & marhamatizadeh, 2022). in conclusion, live e-commerce plays a crucial role in shaping consumer perceptions of green products. through product demonstrations, user interaction, expert evaluations, environmental certifications, thematic events, and ecological awareness campaigns, live e-commerce platforms enhance consumer awareness and trust in green products, ultimately fostering their market popularity and increasing consumer engagement with environmentally friendly choices. figure 3: theoretical model of shopping on a live ecommerce platform. risks of consumer perception of green products false publicity and misleading statements about green products in live e-commerce, consumer perceptions of green products could significantly be influenced by false advertising and misleading statements, which increase the perceived risks associated with these products. such misleading information may encompass exaggerated claims about the environmental benefits of products, incorrect environmental certifications or labels, and inaccurate descriptions of their ecological attributes. this misinformation can lead to consumer misunderstandings regarding the environmental performance of products, ultimately affecting their perceptions and purchasing decisions regarding green products. unscrupulous merchants may intentionally disseminate false claims and misleading information to pursue marketing gains, complicating consumers' ability accurately assess the environmental characteristics of products and heightening the perceived risks associated with choosing green options. live e-commerce platforms have a critical role in combating false advertising and misleading statements. they can enhance the auditing of product information to ensure that what displayed is accurate and reliable, while also prohibiting the dissemination of false propaganda and deceptive claims. additionally, platforms can establish reporting mechanisms that encourage consumers and other users to report instances of false advertising. this proactive approach allows for the timely removal of incorrect information and helps to protect consumers' legitimate rights and interests. by implementing these measures, live e-commerce platforms can mitigate the negative impact of false advertising on consumers' perceptions of green products, thereby enhancing trust and recognition of these offerings. figure 4 presents statistics on the reasons for purchasing harmful green products, with false advertising accounting for 16.7% of the factors identified (agag, 2019; jiang, 2019; li, shen, & huang, 2019; song, yan, & zhang, 2019). figure 4: statistics on reasons for purchasing harmful green products. uncertainty about the authenticity and validity of products one significant risk associated with consumer perception of green products in live e-commerce is the uncertainty surrounding the authenticity and validity of these products. given the nature of live-streaming e-commerce, consumers typically rely on on-screen displays and presentations by anchors to learn about the products. this reliance can lead to scepticism regarding the actual environmental attributes of the products. factors such as false advertising, exaggerated ecological claims, and the absence of authentic environmental certifications can further obscure consumers' ability to assess the authenticity and ecological effectiveness of the products, thereby increasing the perceived risks associated with selecting green options (guo, 2023). figure 5 illustrates the relationship between the tendency of bandwagon anchors and product purchases, revealing that consumers tend to trust endorsements from platforms like netflix more than those from other sources do, with government personnel following closely behind. this indicates that consumers' uncertainty about product authenticity and effectiveness can negatively affect their trust and willingness to purchase green products. to mitigate this risk, live e-commerce platforms can enhance the review and management of product information to ensure its authenticity and accuracy. platforms should require merchants to provide credible environmental certifications and test reports from authoritative organisations to substantiate the ecological claims made about their products. agbioforum, 26(1), 2024 | 73 geng et al consumer perceived risk of green produce under live e-commerce additionally, offering professional insights and educational resources about environmental issues can help consumers gain a more comprehensive understanding of the ecological characteristics of the products, thereby reducing doubts about their authenticity and effectiveness. furthermore, live ecommerce platforms can implement consumer evaluation and feedback mechanisms, allowing purchasers to share their reallife experiences and assessments of the products. such mechanisms can enhance the transparency of product information, diminish uncertainty regarding product authenticity and effectiveness, and ultimately bolster consumer trust in green products. figure 5: live broadcast e-commerce anchor tendency map. the impact of consumer perceived risk on live e-commerce consumer scepticism and reduced sales the risk associated with consumer perceptions of green products can negatively affect live e-commerce platforms in several ways. firstly, scepticism regarding the authenticity and environmental effectiveness of these products may erode consumer trust in the platform. this lack of confidence can extend beyond green products, affecting consumers' willingness to trust other offerings, which ultimately harms the platform’s reputation and credibility. secondly, such scepticism can lead to reduced sales. when consumers doubt the environmental claims and authenticity of a product, they may adopt a more cautious approach to purchasing green products, resulting in decreased sales figures. this decline not only affects the economic interests of the platform but may also diminish merchants' motivation to invest in and develop green products, further hindering the supply and promotion of these offerings on the platform. to address these challenges, live-streaming e-commerce platforms must take proactive measures to enhance the transparency and trustworthiness of product information. strengthening the review and management of product details is crucial to ensuring that information is both authentic and accurate. additionally, platforms can provide professional insights and educational resources related to environmental issues, which will help consumers gain a more comprehensive understanding of the ecological characteristics of the products, thereby improving overall product trust. establishing a consumer evaluation and feedback mechanism is also essential. this allows consumers who have purchased and used the products to share their experiences and assessments, offering valuable references for other potential buyers. such mechanisms increase the transparency of product information, uphold the platform's reputation, and can boost the sales of green products. by implementing these strategies, live e-commerce platforms can mitigate consumer scepticism, enhance sales, and reinforce their reputation and credibility. table 1 illustrates the ecommerce live marketing communication model and its content, highlighting the importance of information disclosure during live broadcasts in building audience trust (jiang et al., 2019). table 1: e-commerce live marketing communication modes and content. fixed content (viewers can actively block) optional content (anchor can customize content) pop-up content (viewers can actively stop) main dissemination body a1: live room name a3: announcement or description of the live room a4: information on lucky draws/preferential offers a2: rank and intimacy; a5: reminder of goods on shelves a6: list of ommodities secondary communication body b1: live to see the number of viewers b2: live broadcast audience behavior alerts b4: number of likes b3: live see discussion forum impact on brand reputation and loyalty the risks associated with consumer perceptions of green products on live e-commerce platforms can significantly affect brand reputation and customer loyalty. when consumers express scepticism about the environmental attributes and authenticity of a product, they may begin to question the credibility of product information across the entire platform. this erosion of trust can lead to a broader reluctance to trust other products available on the platform, ultimately damaging its reputation and credibility. furthermore, when scepticism arises regarding the authenticity and environmental effectiveness of a product, it can extend to the brand itself, resulting in reputational harm. this scepticism not only undermines consumer confidence in the platform but also impacts customer loyalty, making consumers more hesitant to consider purchasing green products or engaging with the platform. such doubts can diminish consumer commitment, potentially leading to a decreased willingness to shop on the platform and negatively affecting brand loyalty and long-term profitability. to mitigate these adverse effects, live e-commerce platforms must strengthen the review and management of product information to ensure its authenticity and accuracy. additionally, providing professional insights and educational resources about environmental issues can help consumers agbioforum, 26(1), 2024 | 74 geng et al consumer perceived risk of green produce under live e-commerce develop a more comprehensive understanding of the ecological characteristics of products, thereby increasing trust. establishing a consumer evaluation and feedback mechanism is also crucial; it enables customers who have purchased and used the products to share their real-life experiences and assessments. this transparency can enhance trust in green products and bolster the reputation and credibility of the platform, ultimately fostering greater brand loyalty. by implementing these strategies, live e-commerce platforms can reduce consumer scepticism, strengthen brand reputation, and enhance customer commitment, thereby increasing overall trust in both green products and the platform itself. table 2 illustrates customer attitudes towards after-sales service for live green products, highlighting that shirking responsibility for after-sales accounts for a significant proportion of concerns (li, frederick, & gereffi, 2019). table 2: customers' attitudes toward live green products after sale. attitude sample size proportion (%) no after-sale problems 86 26.14 timely resolution of after-sale problems 64 19.45 direct bad evaluation 39 11.85 no complaint channel 49 14.89 shirking responsibility 68 20.67 unable to communicate 23 6.99 legal and ethical issues facing businesses the risks associated with consumer perceptions of green products on live e-commerce platforms can lead to significant legal and ethical issues for companies. when consumers express scepticism about the environmental attributes of a product, companies may become susceptible to legal actions stemming from false advertising or the promotion of misleading green products. such false claims could violate relevant laws and regulations, including the consumer protection law and the advertising law, exposing companies to potential legal liabilities, fines, and reputational damage. exaggerating product characteristics or misrepresenting certifications not only undermines consumer interests but also jeopardises the reputation of the industry as a whole. moreover, companies that promote green products on live e-commerce platforms, where doubts exist about the authenticity of these environmental claims, may encounter ethical dilemmas. such practices contravene business ethics and can negatively affect the long-term sustainability and development of enterprises. to address these challenges, companies must enhance their auditing and management of product information to ensure its authenticity and accuracy. compliance with applicable laws and regulations, such as the advertising law and the consumer protection law, is crucial; companies should avoid exaggerating the environmental benefits of their products or employing false ecological certifications. furthermore, adhering to business ethics is imperative, requiring companies to communicate product information honestly and transparently to safeguard consumers’ legitimate rights and interests. figure 6 presents a governance network map of live e-commerce product quality, illustrating that live platforms are subject to government regulation, while forums and consumers collaborate to uphold product integrity. the risk of consumer perceptions of green products can indeed trigger legal and ethical challenges for companies. to avert such issues, businesses need to strengthen the management and review of product information, ensure compliance with relevant laws and regulations, and uphold ethical standards by accurately presenting the environmental attributes of their products. this approach will help protect the company’s reputation and the rights and interests of consumers. figure 6: network system for product quality governance in live e-commerce. strategies to reduce consumer perceived risk in live e-commerce information transparency and disclosure live streaming e-commerce platforms and business practices enhancing the transparency and disclosure of product information is not only a strategy to mitigate the risks associated with consumer perceptions of green products but also a crucial step towards fostering a healthy and honest business ecosystem. by providing detailed product information and making certification and testing reports accessible, consumers can achieve a more comprehensive understanding of product characteristics and environmental attributes, thereby reducing suspicion and doubt. this transparency also plays a vital role in combating false advertising and fraudulent practices, while encouraging companies to improve product quality and sustainability. consumer trust and recognition of green products are essential for sustainable business practices and brand development. increasing the transparency and disclosure of product information forms the foundation for establishing this trust. within e-commerce live streaming platforms, agbioforum, 26(1), 2024 | 75 geng et al consumer perceived risk of green produce under live e-commerce enhancing the openness of product information can further bolster consumer confidence in the medium and foster loyalty towards the platform, thereby supporting its long-term development. trust in these platforms is vital for their stable operation and sustainable growth. by providing effective and accurate product information, platforms can enhance users' trust, improve brand reputation, and attract more consumers and businesses to participate in the forum. table 3 outlines the key elements and corresponding measures relevant to the live e-commerce context. in summary, enhancing transparency and disclosure of product information not only mitigates the risks associated with consumer perceptions of green products but also contributes to the healthy development of the industry. it helps maintain the reputation of enterprises and platforms, strengthens consumer trust in products and media, and promotes sustainable operation and development. table 3: statistics of e-commerce live streaming scene elements. element scene 1 scene 2 scene 3 scene 4 scene 5 anchor √ √ √ √ √ users × √ √ √ × merchandise × × √ √ √ scripts × × × √ √ measures web celebrity endorsement price advantage to attract customers anchor introduction recommendation brand activities + advertising endorsement anchor performance dance + singing recommend action consumers and information transparency in live e-commerce, enhancing transparency and disclosure of product information is a vital strategy for mitigating the risks associated with consumer perceptions of green products. to effectively identify and assess product information, consumers can adopt several approaches. to effectively, assess product information in live e-commerce, consumers should employ several strategies. firstly, they should carefully read product introductions and descriptions to gain insights into the material composition, manufacturing processes, and environmental characteristics of the products. it is essential that e-commerce platforms and companies provide detailed product descriptions to support this comprehensive understanding. secondly, consumers can analyze reviews and feedback from other buyers, which offer valuable insights into actual experiences concerning the product's environmental attributes. these genuine evaluations enable consumers to develop a more nuanced understanding of the product's real-world performance. figure 7: three-way game diagram of consumers, live streaming e-commerce companies, and regulators. additionally, seeking professional advice from experts in environmental organizations can further enhance consumers' knowledge by providing authoritative product information and guidance regarding environmental impacts. together, these approaches empower consumers to make informed decisions in their purchasing processes. while enhancing the transparency and disclosure of product information, it is essential for consumers proactively seek and analyses this information. doing so will help them obtain valid and accurate insights, thereby reducing the risks associated with perceptions of green products and enabling more informed and rational purchasing decisions. figure 7 illustrates the tripartite relationship between consumers, e-commerce platforms, and regulators. this diagram underscores the importance of consumers actively screening information and defending their rights in a timely manner when they encounter potential infringements on their interests. by taking these steps, consumers can better protect themselves and contribute to a more transparent and trustworthy e-commerce environment. third-party authentication and validation authentication and presentation to improve transparency and disclosure of product information, companies can implement several measures related to third-party certification and verification, thereby reducing consumers' cognitive risks regarding green products. firstly, diversifying certifications beyond environmental standards to include quality and sustainability certifications can significantly enhance consumer trust in products. these additional certifications reinforce the product’s overall quality and commitment to sustainability. secondly, establishing partnerships with authoritative certification bodies and industry organizations can provide companies with further certifications and professional support, enhancing the credibility of their offerings. collaborating with these entities not only strengthens product validation but also signals a commitment to high standards. additionally, companies can leverage third-party verification platforms to present certification and verification information about their products. these platforms typically regarded as transparent and credible, providing consumers with reliable product information. furthermore, implementing a rigorous internal audit program is essential. this program should ensure that the environmental attributes of products meet certification requirements through quality control and supervision of the production process. such measures guarantee the truthfulness agbioforum, 26(1), 2024 | 76 geng et al consumer perceived risk of green produce under live e-commerce and accuracy of product information. collectively, these initiatives not only help to mitigate the risks associated with consumer perceptions of green products but also enhance a company's sustainability and brand image. by fostering transparency and credibility, companies can gain consumer trust and contribute to a more sustainable and transparent industry overall. viewing and identification when consumers in live e-commerce seek to view and identify third-party certifications and verifications of products, there are several effective strategies, which they can employ. firstly, checking the product packaging or labeling is a straightforward approach, as many products display certification marks such as environmental or green certifications. by scrutinizing the packaging, consumers can confirm whether the product has received relevant third-party endorsements. secondly, consumers should visit the official websites of companies or refer to product manuals, where certification information and verification reports typically provided. these sources offer detailed insights into the certifications a product has obtained. another useful method is to consult third-party certification organizations, which often maintain online databases. these databases allow consumers to verify the certification status of a product and ensure that it meets the necessary standards. consumers can also review evaluation and assessment reports, usually published by professional organizations or authoritative media. these reports provide valuable information on product certification and verification, enhancing consumer understanding. finally, if there are doubts regarding the certification information, consumers can seek professional advice from environmental organizations, consumer rights groups, or other experts to obtain accurate and reliable information about certification identification. by employing these methods, consumers can effectively view and identify third-party certification and verification information, thus gaining a better understanding of a product's environmental attributes. this knowledge helps reduce the perceived risks associated with green products and supports more rational and informed purchasing decisions. figure 8 illustrates the psychology of customer behavior in the live e-commerce environment, highlighting the various factors that influence consumer actions. building trust and credibility through authentic communication in the context of live e-commerce, establishing accurate communication is a vital strategy for mitigating the risks associated with consumer perceptions of green products. by fostering trust and credibility, companies can enhance consumer confidence in these products and, in turn, reduce perceived risks. firstly, companies can share authentic case studies and narratives through live streaming, videos, or written content. these real-world examples should highlight the product’s production processes, environmental characteristics, and usage effects, allowing consumers to gain a more intuitive understanding of the product's actual benefits. secondly, demonstrating the product’s usage process during live broadcasts can significantly enhance consumer trust. by displaying the product in action, consumers can directly observe its functionality and environmental features, reinforcing their confidence in its effectiveness. additionally, live e-commerce platforms should proactively address consumer inquiries and clarify any concerns regarding environmental certifications and verification information. by openly answering questions, companies can dispel doubts and enhance the perceived credibility of their products. transparency is also crucial; companies should provide clear and detailed product information, including material composition, manufacturing processes, and environmental certifications. this comprehensive insight allows consumers had better grasp the product's true nature, further boosting their trust. finally, establishing a mechanism for interaction and feedback is essential. encouraging consumers to share their experiences and evaluations fosters a sense of community and transparency, enabling potential buyers to gain insights into the product from fellow users. by employing these strategies to build trust and credibility through authentic communication, companies can effectively reduce the risks associated with consumer perceptions of green products, thereby enhancing consumer recognition and ultimately promoting sales and product adoption. table 4: consumers' suggestions for green products in live e-commerce. recommendations sample size proportion (%) enhancement of logistics services 72 18.9 strengthen green product supervision and management 99 25.98 cultivate professionals 105 27.56 multi-channel live broadcasting 50 13.12 cancel e-commerce bandwagon 32 8.4 others 23 6.04 conclusion this paper discusses the risks associated with consumers' perceptions of green agricultural products within the context of live broadcast e-commerce platforms. by examining the definition of green products, consumer concerns in live e-commerce environments, and the distrust stemming from inadequate product information and marketing practices, this study aims to identify strategies and measures that can assist enterprises in accurately presenting their green products, alleviating consumer apprehensions, and fostering the high-quality development of green products in e-commerce settings. enterprises should ensure that they provide clear and accessible channels for demonstrating the legitimacy and validity of their green products. this involves proactively agbioforum, 26(1), 2024 | 77 geng et al consumer perceived risk of green produce under live e-commerce sharing information during live broadcasts on e-commerce platforms to confirm the proper implementation and authenticity of the products. consumers should take the initiative to thoroughly verify and assess the authenticity of the information presented by companies. this may involve consulting third-party sources or relevant experts to confirm the validity of the claims made regarding the products. both enterprises and consumers should engage in open communication on live broadcast platforms to establish trust and maintain information interoperability. this dialogue is essential for 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policy, earnings management and corporate governance: an empirical study of american agribusiness firms ali mohammed thijeel post graduate institute for accounting & financial studies, university of baghdad, iraq. email: asst.prof.ali@pgiafs.uobaghdad.edu.iq orcid id: https://orcid.org/0009-0001-0999-8642 amira neffati institute supérieur de gestion, university of tunis; gouvernance d’entreprise, finance appliquée et audit laboratory (gef2a) tunisia. email: neffati.emira@gmail.com orcid id: https://orcid.org/0009-0007-9519-7510 wided khiari institute supérieur de gestion, university of tunis; gouvernance d’entreprise, finance appliquée et audit laboratory (gef2a) tunisia. email: khiariwided@yahoo.fr orcid id: https://orcid.org/0000-0001-7248-2780 hakeem hammood flayyih al-fandawi* post graduate institute for accounting & financial studies, university of baghdad, iraq. email: hakeem.hmood@coadec.uobaghdad.edu.iq orcid id: https://orcid.org/0000-0003-0615-0854 this research seeks to examine the interrelationship among dividend policy (dp), earnings management (em), and corporate governance (cg). dp is assessed both as a possible facilitator of em practices and as a governance mechanism capable of mitigating financial reporting distortions. drawing on a sample of 222 agribusiness firms based in the united states over the 2011–2021 period, the study empirically investigates these dynamics. the findings indicate that fluctuations in dividends can elucidate varying impacts on em, depending on the nature of cg frameworks in place. generally, modest increases in dividends associated with earnings growth are prevalent. in contrast, firms often resort to dividend reductions to mask sharp earnings declines and to counteract adverse investor sentiment. furthermore, discriminant analysis reveals that firms characterised by strong cg—evident through significant managerial ownership, the presence of independent board members, and wellestablished audit committees—engage less in em. conversely, agribusiness entities with weaker governance structures are more prone to manipulative earnings practices. the research underscores that board-level dividend decisions can serve as informative signals or, where necessary, act as substitutes for comprehensive governance systems, thereby constraining managerial opportunism. this study contributes to the existing literature by elucidating the specific function of dp in facilitating or constraining em and by emphasising the importance of integrated cg frameworks in sustaining financial integrity within the agribusiness sector. these insights are particularly relevant for policymakers, investors, and regulators aiming to enhance market discipline and promote environmentally sustainable financial conduct in agriculture. keywords: dividend policy, earnings management, corporate governance. introduction at present, the agribusiness sector constitutes a critical intersection of food security, economic development, and technological progress. in the united states, agricultural firms increasingly adopt corporate structures that introduce new managerial complexities. contemporary agribusiness organisations must manage a diverse array of stakeholders, extending beyond conventional shareholders to include farmers, consumers, regulators, and environmental advocates (sporleder & goldsmith, 2001). owing to their position at the center of the food value chain and potential influence on the rural economy, such companies are subject to active public scrutiny, and sound cg practices are demanded (boehlje, 2003). use of biotechnologies, precision agriculture, and data-based methods has further muddied the waters, and greater governance is demanded in order to maintain stakeholders' confidence and obtain sustainable developments (sonka, 2014). unlike other sectors, agriculture presents distinct cg challenges, namely related to openness and compliance arrangements. inasmuch as the business is public-facing, em and dp choices have ramifications extending beyond financial health into affecting farmer confidence, regulator perceptions, and broader reputational integrity (barry et al., 2012). these elements lend themselves ideally to examining the effectiveness of cg with heightened public and regulatory scrutiny. in various industries, extensive research has confirmed a significant relationship between cg and em, typically framed within agency theory, which posits that asymmetric information and conflicting incentives may lead managers to pursue self-interested behaviour (jensen, 1986). effective governance structures have the effect of decreasing em by enhancing supervision, intensified oversight by the board, and bringing managerial objectives into line with those of the shareholders (klein, 2002). there have always existed empirical evidence revealing that firms with robust governance have low anomalies in earnings that suggest manipulation (beasley, 1996; dechow, sloan, & sweeney, 1995). but the governance-em nexus is complicated by the case of agriculture. a high proportion of agribusiness firms are family firms with concentrated control and industryspecialized operating conventions that alter conventional agency interrelationships (mishra, wilson, & williams, 2009). seasonal fluctuation, climatic sensitivity, and variability in prices create distinct incentives for em that may evade conventional governance measures (ifft, kuethe, & morehart, 2015). there is evidence that firms in the industry smooth earnings to provide more stable performance signals to stakeholders (ge & kim, 2014). dp imposes further complications for governance analysis, importantly with consideration for the sporadic income patterns that are typical for farming operations. theory has rival explanations for dividend payout. the free cash flow hypothesis contends that dividends act as a control measure, limiting managerial misuse of surplus funds and compelling external financing that subjects’ investments to greater market scrutiny (das mohapatra & panda, 2022; jensen, 1986). conversely, signalling theory holds that mailto:asst.prof.ali@pgiafs.uobaghdad.edu.iq https://orcid.org/0009-0001-0999-8642 mailto:neffati.emira@gmail.com https://orcid.org/0009-0007-9519-7510 mailto:khiariwided@yahoo.fr https://orcid.org/0000-0001-7248-2780 mailto:hakeem.hmood@coadec.uobaghdad.edu.iq https://orcid.org/0000-0003-0615-0854 agbioforum, 27(1), 2025 | 69 thijeel et al — dividend policy, earnings management and corporate governance: an empirical study of american agribusiness firms dividends convey information regarding a firm's prospects, prompting managers to maintain steady pay-outs irrespective of underlying financial performance (miller & rock, 1985). it is especially significant here, where indirect agents have no first-hand knowledge of manager choices and must contend with sectoral challenges and uncertainties (barry et al., 2012). its dual description of dp—as both disciplinary device and potential avenue for em—creates theoretical questions that must be answered empirically. latest research into agricultural finance has triggered debates regarding the cross-section between em and dividends in the agribusiness industry. some agribusiness companies transparently disclose dividend information with the aim to impact stakeholders' perceptions, which may unknowingly drive earnings inflation for sustaining dividend continuity (ahmad et al., 2023). some believe that dividend payments at this point are largely connected with liquidity management strategies due to specific capital requirements (featherstone, roessler, & barry, 2006). these differing perceptions advocate comprehensive studies regarding dividend practice among agribusiness governance. the triadic relationship among cg, dp, and em constitutes a complex framework that transcends binary analyses. governance mechanisms may influence em directly—via monitoring and control— and indirectly through their effect on dp choices. effective governance may lead to dp strategies reducing earnings manipulation possibilities (la porta et al., 2000). their need, however, to maintain stable dividends may lead firms to mask their poor performances with the assistance of em tactics (daniel, denis, & naveen, 2008). at the firm level, studies that directly consider how dp mediates between cg–em are scarce. if dp is the conduit by which cg impacts em, comprehension of this intervening role is important for the formulation of effective governance structures fit for the sector (jiraporn, kim, & kim, 2011). the mediation model asserts that cg quality affects dp decisions that affect em, offering an indirect governance influence that extends beyond mere supervisory roles. agricultural enterprises, with their organizational and structural idiosyncrasies, could obscure or distort theoretical linkages. high capital intensity, long investment horizons, and exposure to biological and environmental risks render the sector uniquely dependent on tailored financial strategies. these factors are likely decisive about both em tendencies and dividend behavior (barry et al., 2012). high concentration and high debt in the sector also redefine traditional firm behavior and agency arrangements (boehlje & doering iii, 2000). furthermore, pressures by public policy that are aimed at agricultural output create yet another dimension, influencing earnings disclosures and payout decisions. other than general financial regulations, agriculture faces sectoral regulations for food safety, environmental compliance, and agricultural policy. these additional regulations could have served to escalate exposure by em and dp, again requiring effective cg by organizational entities to retain legitimacy with regulators and the public at large (thompson & hannah, 2008). where financial regulation meets agricultural regulation, there are specific issues of compliance that impact daily operative decisions. despite the theoretical significance of this tripartite relationship, empirical work exploring the simultaneous influence of cg, dp, and em within agribusiness is limited. existing research tends to isolate individual relationships or examine them outside the integrated organisational context (cornett, marcus, & tehranian, 2008). the present study addresses this gap by investigating how em and dp decisions influence critical outcomes in agribusiness, including the capacity for biotechnology investment, trust among farmer stakeholders, and fulfilment of regulatory transparency obligations. these outcomes extend beyond financial indicators to reflect broader stakeholder impact. the study also assesses whether the sector’s public exposure and regulatory intensity affect the efficacy of cg mechanisms relative to other industries. by focusing on fortune 1000 agribusiness firms— representative of mature organisations with advanced governance practices and heightened accountability—the research provides nuanced evidence on the interplay between cg, dp, and em. the integrated analysis of direct and mediated relationships contributes meaningfully to both academic understanding and practical guidance for policy and governance design in agricultural enterprises. literature review earnings management in agricultural enterprises the methods used to assess em within agricultural enterprises have advanced significantly, evolving from elementary accrual-based indicators to more intricate multivariate models that reflect the unique attributes of the sector. initial agricultural finance research overwhelmingly employed discretionary accruals from the jones (1991) model that estimates non-discretionary accruals by regressing with revenue changes and fixed assets such as property, plant, and equipment (jones, 1991). its application for agriculture, however, has been plagued due to sectoral attributes that are inherent, such as seasonality of cash flow, valuation issues that are inherent with livestock, and income that varies with weather-dependent crops. dechow et al. (1995) indicated that the modified jones model produced more precise discretionary accruals estimates than prior approaches. in the years since, this new approach has seen extensive use among agricultural studies, with varied outcomes. peasnell, pope, & young (2000) contributed their part with an examination of how corporate boards' composition influences em, with the finding that firms with greater external directors evidenced low discretionary accruals usage. their findings, with multiple sectors such as agriculture included, reflect the possible role that governance mechanisms have in lowering em. in answer to the failures of traditional models, more elaborate measures of em suitable for agricultural firms have emerged. one significant contribution was by elad (2004), who gave an exhaustive treatment of biological assets' accounting. the study identified considerable discrepancies in the application of fair value measurements, highlighting that such practices could be exploited for earnings manipulation. elad's research revealed that firms experiencing substantial growth in biological assets also agbioforum, 27(1), 2025 | 70 thijeel et al — dividend policy, earnings management and corporate governance: an empirical study of american agribusiness firms reported heightened earnings volatility, indicating that the accounting treatment of biological assets presents distinctive em opportunities absent in many other sectors. empirical results concerning the prevalence and intensity of em in agriculture are still inconclusive. huffman (1989), for instance, compared em orientations between agricultural cooperatives and investor-owned firms and found that the latter tended to have low discretionary accruals. this finding was explained by the dual nature of the members of cooperatives, who are proprietors and customers at the same time, and have therefore established intrinsic governance structures that inhibit managerial discretion. more recent studies have focused on individual agricultural subindustries and the em challenges that are ingrained within each. penno & simon (1986) have given seminal remarks concerning sector-specificity of accounting practices, which formed an intellectual foundation for the theoretical approaches that have been utilized in agricultural em studies (utari et al., 2023). the sector’s susceptibility to government subsidies and price intervention schemes introduces further complexity in evaluating earnings quality. key & roberts (2006) documented these challenges in their analysis of how agricultural policies influence financial reporting behaviours, underscoring that external support mechanisms can distort earnings representations. corporate governance mechanisms measurement of cg in agriculture has developed over time from structural elements to wider industry-specific dynamics. in the first studies, authors commonly used indicators such as ceo duality, board autonomy, and the presence of audit committees to quantify governance quality (fama & jensen, 1983). while such first measures served well, they could not do justice when attempting to reflect the complexities of governance practices that are found within agricultural settings, where structures of possession are often defined by family control, co-ops, and various stakeholders. the theoretical model proposed by fama & jensen (1983) concerning organisational types and governance structures applies specifically to agriculture since business enterprises that are involved with this sector are commonly defined by hybrid elements that are found between public offerings and individually managed partnerships. their model that targets decision-making control and residual claims provides an answer for why governance structures that are employed by firms within the agricultural sector must be different from structures that are employed by firms that are involved elsewhere. even with empirical research that has studied cg within agriculture, findings have differed due to the distinct nature of the sector. for instance, baysinger & butler (2019) observed that enhancing board independence contributed positively to firm performance. however, subsequent studies within the agricultural domain have identified more nuanced patterns. drawing on hermalin and weisbach’s (2001) research, agricultural scholars now posit that domain-specific expertise on boards may play a more critical role in influencing outcomes than independence alone. there have even been studies recently that have looked at structures of governance that are tailor-made for the structural idiosyncrasies of agricultural enterprises. in his examination of governance for cooperatives, cook (1995) found that member participation and majority voting procedures create unique challenges and governance advantages. his study showed that, if properly designed and managed, structures of governance for cooperatives or partnerships are similar in their potential for managerial opportunism control with corporate structures. the structure of ownership among agricultural firms has even captured increased scholarly attention. mishra et al. (2009) analysed the prevalence and implications of family ownership within the sector, concluding that family-owned farms exhibited distinct investment behaviours and risk management strategies compared to firms with widely dispersed shareholding. these differences underscore the importance of contextualising governance models to accommodate the specific ownership and operational characteristics prevalent in agricultural businesses. dividend policy in agricultural contexts: theoretical predictions vs. empirical reality inter-cash flow cycle fluctuations, typical capital structures, and stakeholders-based dividend expectation in agricultural enterprises are among the most critical factors that lead to why dividend policy analysis for such business is different from traditional corporate finance literature. seasonal revenues that the business relies upon, enormous payments in physical assets like land and equipment, and exposure to volatile commodity markets make stable dividend policy design challenging. miller and modigliani’s (1961) foundational theory on the irrelevance of dividend policy under perfect market conditions has been contested in agricultural contexts, where information asymmetries and agency-related issues are often intensified. subsequent work by miller & rock (1985) suggested that in agriculture, dividend announcements may not perform the same signalling function observed in other sectors. there have emerged new studies that have reconsidered lintner’s (1956) postulates originally concerning dividend practices within agricultural settings. because of the cash flow variability and extensive capital intensity that are characteristic of farming firms, agricultural firms have often tended towards defensive dividend policy (barry et al., 2012). emerging trends among such studies are that there is high heterogeneity in dividend and earnings management behaviours that are firm-specific and sectoral. skinner & soltes (2011) cited that increased pressure concerning the maintenance of dividend payouts might inflame earnings inflation, with reference for agricultural firms that have oftentimes had to maintain dividend consistency given income variability. structural form of agricultural organizations also influences dividend strategy. royer (2014) investigated dividend and patronage refund practices in agricultural cooperatives, highlighting how their governance architecture leads to different decision-making approaches when compared to publicly traded corporations. his findings demonstrated that cooperative dividend behaviour is more sensitive to member relationships and participatory dynamics than to purely financial considerations. this reinforces the argument that dividend agbioforum, 27(1), 2025 | 71 thijeel et al — dividend policy, earnings management and corporate governance: an empirical study of american agribusiness firms policy in agriculture is not only a financial mechanism but also a relational and governance-oriented tool. sector-specific challenges: seasonal earnings, subsidies, and environmental accountability working difficulty of agricultural firms has important bearings on quality of board-level decisions and earnings management practice. considering the reality that agricultural revenues are seasonally generated, firm analysis and financial reporting have erratic schedules themselves, and the incorporation of government support makes assessing reliability of earnings even trickier. in many cases, conventional financial governance instruments prove wanting, which pressures regulators into incorporating environmental considerations into their regimes of oversight. the seasonality of agricultural operations leads to pronounced fluctuations in income reporting, making it difficult for analysts to differentiate between genuine performance variations and manipulative reporting practices. pope & wang (2005) highlighted the difficulty of distinguishing seasonal income changes from deliberate managerial manipulation. their study emphasised the necessity of sectorspecific accounting standards and tailored benchmarks when assessing earnings quality in agriculture. state-funded financing mechanisms add another level of complexity for earnings manipulation analysis for agricultural enterprises. key & roberts (2006) demonstrated that identification and timing of inflows of subsidies exert considerable impact on recorded earnings. their evidence indicated that agricultural companies have considerable discretion regarding how they recognize such subsidies, which could provide greater potential for earnings manipulation than other companies. moreover, the addition of environmental governance requirements in agriculture introduces governance matters that lie beyond the competency of regular corporate oversight mechanisms. thompson & hannah (2008) examined how regulatory compliance in environmental matters reshapes board composition and governance priorities. their research revealed that firms with robust environmental governance frameworks not only exhibit higher compliance but also demonstrate improved stakeholder engagement. intersections between environmental reporting obligations and financial reporting offer earnings manipulation prospects alongside new sets of regulatory challenges. environmental reporting requirements are important for agribusiness enterprises, and their reporting tends often to be left at the hands of individual producers. the research by lyon & maxwell (2011) is particularly suitable for agribusiness firms whose environmental rules have brought greater vigilance and demand for disclosures. their analysis underscores the governance burden that environmental obligations place on agricultural firms and highlights the potential for such mandates to influence both earnings management and reporting behaviour. integration of governance, dividends, and earnings management: empirical synthesis scholarship that examines interdependencies between governance structures, dividend payment behavior, and earnings management by agricultural organizations has discovered significant conceptual and empirical complexities that are only partially addressed by prevailing theories. the complex nature of such interdependencies, along with sectoral nuances of agricultural firms, has led numerous researchers to shy away from comprehensive financial investigations within this sector. jiraporn et al. (2011) provided one of the few studies that systematically investigated the joint influence of dividend policies and earnings management across agriculture and comparable sectors. their findings indicated that dividend-paying firms are generally less inclined to engage in earnings manipulation compared to non-dividend-paying counterparts. however, within agricultural enterprises, governance mechanisms tied to dividend policies appeared to exert less influence, potentially due to the distinct organisational and operational features of the sector. la porta et al.’s (2000) framework, which links investor protection levels to dividend pay-outs, has had partial applicability in agricultural contexts. while their conclusion—that firms in jurisdictions with stronger investor protection tend to distribute higher dividends— has been corroborated within parts of the agricultural sector, the widespread presence of cooperative and family ownership complicates its broader application. this variation has led to increased academic interest in the role of dividend policy as a potential explanatory factor in the governance–earnings management nexus. farinha (2003) argued that dividend policies may act as substitutes for other monitoring mechanisms in corporate governance, a proposition particularly salient for agricultural firms, where conventional oversight structures may be less effective due to the sector’s unique features. research gaps despite increasing awareness with respect to governance, dividend policy, and earnings manipulation, considerable gaps are present throughout the literature that inhibit theoretical comprehension and practical application throughout agribusiness firms. current research models inhibit the development of sound management models that are uniquely crafted for companies that are involved with the farming business. methodological inadequacies are prevalent, where many studies are still utilizing traditional earnings manipulation proxies that are insufficient for capturing the distinct manipulation tactics that are utilized throughout the farming business. although some scholars have proposed sector-specific models, there remains no consensus regarding the appropriate governance controls for detecting earnings management in agriculture. furthermore, the temporal scope of much research is insufficient to encompass the full agricultural production cycles, thereby restricting insight into how governance changes influence farm operations over time. the literature predominantly addresses developed markets, resulting in a geographic bias that reduces the generalisability of findings and potentially overlooks institutional factors critical for effective governance in emerging agricultural economies. moreover, integrating environmental, social, and governance (esg) dimensions into agricultural finance agbioforum, 27(1), 2025 | 72 thijeel et al — dividend policy, earnings management and corporate governance: an empirical study of american agribusiness firms research is new. despite increasing supervisory and social pressures related to the environmental impact of agriculture, governance research overwhelmingly resorts to conventional measures of finance at the cost of sustainability viewpoints. inasmuch, the mechanisms underlying found association between governance practices and dividend policy, and earnings management are unclear. while numerous studies document association between variables, few test absolute causality connections or describe the conduits between them. these circumstances underscore the necessity for longitudinal, integrative research that makes allowances for the distinctness of agricultural enterprise and the interplay between stakeholders. future research must privilege appropriate measurement methods, employ wider scales of geographical locations, cover esg dimensions, and strive to reveal forces that drive sound corporate governance among agribusiness firms. methodology sample it utilises an exhaustive database that includes 222 firms that are headquartered outside the united states and listed among the elite fortune 1000 listings between 2014 and 2021. financial and insurance sectors have deliberately been excluded with the intention of maintaining focused analysis for the study. corporate governance data, such as significant variables such as board composition and audit committee presence, have been carefully extracted from a specialised governance database. additional financial data, that includes comprehensive financials and off-balance-sheet components such as dp, have also been extracted from the same exhaustive repository. additionally, market-related variables were gathered from a range of reputable financial market databases to provide a comprehensive perspective on the firms analysed. to measure da as an indicator of em, the study employs the modified jones model (1991). this model estimates non-discretionary accruals based on the premise that managerial discretion is constrained. the model is formally specified as follows: ndat = α₁(1/at−1) + α₂ (δrevt − δrect / at−1) + α₃(ppet / at−1) where: ndat: non-discretionary portion of accruals in period t. at−1: total assets at the conclusion of the prior period. δrevt: change in revenues among periods t and t−1. δrect: change in accounts receivable during the same period. ppet: net value of property, plant, and equipment in period t. the total accruals can then be expressed as: tat−1 / at−2 = ndat + εt, here, tat denotes the total accruals, and εt is the error term that isolates the discretionary component of accruals. disclosure by biotech firms is important to the economics of agriculture given their dependence on public financing, regulative control, and their critical role in ensuring global food security. best practices for transparent reporting are recommended for increasing ethical public fund utilization, ease in compliance with regulative requirements, and enhancing investor confidence—preconditions that are necessary for attracting private investment, according to the food and agriculture organization (fao). furthermore, information asymmetry is rectified by transparency, increasing market efficiency and reducing the cost of capital. esg disclosures further strengthen the link between transparency and financial performance by aligning biotechnological operations with broader sustainability objectives. additionally, transparent entities, exemplified by ukrainian agroholdings, benefit from improved access to international equity markets, underscoring transparency’s function in reinforcing corporate governance and enhancing sectoral resilience. em motivated by dividend policy figure 1: the interplay among the variables. agbioforum, 27(1), 2025 | 73 thijeel et al — dividend policy, earnings management and corporate governance: an empirical study of american agribusiness firms dp has long been a central subject of academic investigation, as dividend decisions represent one of the most significant financial choices faced by firms. nevertheless, numerous unresolved issues remain. this section seeks to examine the relationship between dp and em—two interrelated phenomena, given that dividend distributions are based on reported earnings, which can be susceptible to accounting manipulation. kasen et al. (1996) explored whether firms engage in em with the specific intent of influencing dp. their empirical study, utilising a sample of non-financial firms, provides evidence supporting the presence of dividend-driven accounting adjustments. consequently, dp should not be considered in isolation when analysing em strategies; rather, these concepts appear to exert reciprocal influence. figure 1 illustrates the interaction among these variables. results testing the impact of dividend pay-outs on em through da to examine the hypothesis that dp serves as a motivation for em, we analysed the relationship between dp and da—used as a proxy for em—calculated employing the modified jones model. the results of this analysis are presented in table 1. moreover. table 1 presents statistically significant fisher f-values, which confirm the presence of an interaction between dp and da. the highest f-value of 22.13 indicates that this relationship follows a cubic pattern. to further explore this association, the pearson correlation coefficient between the two variables was computed, with the results displayed in table 2. the modest yet statistically significant positive correlation corroborates the hypothesis that dp is positively related to em. subsequently, the sample was segmented according to dividend growth rate to analyse the behaviour of da, with the results presented in table 3. table 1: interplay among pay-out and da independent variable. interplay type f sig. discretionary linearis 13.52 .000 quadratic 21.55 .000 cubic 22.13 .000 table 2: correlation matrix among da and dividend payout. correlation da dividend/earnings da 1 .086 significance .000 .000 dividend/earnings .086 1 significance .000 .000 table 3: em and dividend growth rate. dividend growth rate em strategy positive downward em neutral upward em negative downward em the data indicate that variations in dividend pay-outs are associated with downward earnings management. specifically, when dp increases, managers tend to reduce reported earnings to offset this rise. conversely, decreases in dp coincide with downward earnings management as a means to signal subpar performance rather than managerial inefficiency. meanwhile, stability in dividend growth is linked to upward earnings management aimed at attracting investors. these outcomes correspond with lintner’s (1956) findings, which noted that consistent dividend policies appeal to investors and are frequently accompanied by earnings management to preserve favourable perceptions. to enhance the analysis, the subset exhibiting downward earnings management was further segmented into clusters based on discretionary accruals and dividend growth rate. a descriptive analysis of these clusters is presented in tables 4 and 5. table 4: descriptive statistics for da and dividend growth rate. group mean da mean dividend growth rate g1 -.078 -0.16 g2 -0.27961 0.19 the findings presented in table 5 indicate that dividend reductions are linked to pronounced downward earnings management. conversely, dividend increases provoke only modest earnings management, as their favourable market signal can attract investors and indirectly enhance the firm’s capital through stock price appreciation. consequently, managers tend to minimally decrease reported earnings to counterbalance the decline in internal financing, which may be offset by external funding sources. these observations corroborate the conclusions of gordon & shapiro (1956), who established a positive association between dividend increases and firm value. however, dividend cuts exert a dual adverse effect: they provoke negative market responses and undermine managerial reputation, resulting in long-term detriments that surpass any short-term benefits derived from earnings management. table 5: em and dividend changes. group em type dividend trend g1 aggressive downward dividend decrease g2 mild downward dividend increase interplay among the em, dp, and cg this section examines the influence of robust cg, particularly by the board of directors and the audit committee, on em and dp. research in this domain initially emerged in the united states, where levitt (1998), then chairman of the securities and exchange commission (sec), famously asserted: “an active and effective board, responsible financial management, independent auditors, and vigilant regulators all share the responsibility of protecting investor interests. effective cg of the financial reporting process is a critical tool for firms and auditors in fulfilling this responsibility.” this statement underscores the significant relationship between effective cg mechanisms and firm quality. cg is defined as “a set of mechanisms that define the limits of managerial power and influence decision-making, in other words, mechanisms that govern executive behaviour and delimit their discretion.” in response to escalating concerns regarding managerial opportunism, the new york stock agbioforum, 27(1), 2025 | 74 thijeel et al — dividend policy, earnings management and corporate governance: an empirical study of american agribusiness firms exchange (nyse) and nasdaq enhanced audit committee requirements to improve committee functionality and the quality of financial reporting. consequently, the sec, nyse, nasdaq, and amex have advocated for optimal cg frameworks aimed at mitigating em. empirical studies by abbadi, hijazi, & alrahahleh (2016), gardi, aga, & abdullah (2023), and hasan, aly, & hussainey (2022) substantiate the association between robust cg practices and improved financial reporting quality. dp as a tool for managing agency conflicts the optimal capital structure aims to minimise agency costs, with dp serving as a mechanism to control managerial conduct. dividend payments may compel firms to obtain external financing, thereby exposing them to market scrutiny. under such circumstances, managers are required to demonstrate strong historical performance and credible investment prospects to avoid penalties from the market. empirical evidence suggests that dividend payouts tend to increase with the number of directors on the board, indicating that firms with a separation between ownership and control distribute higher dividends. however, while dp contributes to the reduction of agency costs, it simultaneously incurs other expenses, including taxation and transaction costs associated with issuing new equity. consequently, the dividend pay-out ratio reflects a trade-off between minimising agency costs and minimising the costs related to dividend distribution (bian et al., 2023; tayachi et al., 2023). empirical results: dp and cg to examine the role of dp as a cg mechanism, a regression analysis was conducted utilising the free cash flow model (guizani, 2018). pay-out = β₀ + β₁ managerial ownership + β₂ ownership dispersion + β₃ free cash flow + β₄ fixed assets / total assets + ε where: pay-out = dividend / earnings ownership dispersion = measured by majority shareholder ownership free cash flow = (net income – dividend + depreciation) / total assets the findings presented in table 6 yield several important insights. a positive association between managerial ownership and dp appears to be theoretically sound. when managers possess a substantial share of the firm’s equity, they directly benefit from dividend distributions, rendering the decision to disburse dividends both rational and legitimate. additionally, a positive relationship is evident between dp and the ratio of fixed assets to total assets. this outcome is consistent with expectations, as fixed assets typically exhibit a negative correlation with agency costs stemming from conflicts between shareholders and bondholders. accordingly, shareholders are more likely to receive elevated dividend payments, while bondholders experience increased security due to the enhanced asset base. moreover, the data suggest that dp serves as a substitute for alternative cg mechanisms, such as managerial equity ownership and debt. in the context of ownership concentration, the observed negative correlation with dp implies that heightened concentration mitigates agency costs, thereby reducing the necessity for dividend-based governance mechanisms. when dominant shareholders wield significant influence over corporate decisions, they may favour accessing private control benefits over distributing dividends, which would otherwise be shared with minority investors. finally, the negative coefficient identified between free cash flow and dp underscores their antagonistic effects. dividend payments limit the volume of free cash flow accessible to managers, which could otherwise be diverted for personal objectives. consequently, managers may opt to curtail dividend distributions to retain discretionary control over free cash flow and allocate it towards self-serving initiatives. table 6: regression results using the free cash flow model. variable coefficient prob. managerial ownership .067791* (1.310802) .0000 holding -.068406* (-1.344864) .0000 free cash flow -7.18e-06* (-2.583244) .0000 fixed assets / total assets .027427* (7.077448) .0000 the impact of dp on the em-cg interplay dp plays a dual role, acting as both a potential driver of em and a cg tool that promotes transparency. its impact varies by context and stakeholder perspective—managers, investors, and market participants may interpret dp differently based on their interests. to clarify the effects of cg on em, the sample was divided into three groups based on cg variables that negatively influence da. the findings are summarised in tables 7 and 8. moreover, tables 7 and 8 show that firms with the most effective cg have the lowest em levels, while those with aggressive em practices exhibit poor cg. the intermediate group acts as a control between these extremes. to clarify the relationship among da, em, and cg, a discriminant analysis was conducted to assess whether ownership structure, free cash flow, da, debt, and fixed assets ratio distinguish the three groups. results are summarised in tables 9 and 10. furthermore, the results in tables 9 and 10 further confirm that cg variables significantly affect em, revealing clear differences among groups based on cg quality, ownership structure, and dp. the analysis of the structure matrix and the functions at the groups’ barycentre’s effectively positions both the groups and discrimination factors along two axes. this evaluation supports the conclusions presented in table 11, highlighting key insights from the analysis. table 7: descriptive statistics of da and cg variables for the three groups. statistic (%) g1 g2 g3 da -0.971 0.87582 .03248 duality 0.1 0.16 0.73 charter 0.1 0.3 0.58 big 6 0.13 .02 0.87 expertise 0.26 0.3 0.34 managerial ownership 0.23 0.26 0.5 % external in the board .09 0.426 0.5 audit committee size 0.3 0.1 0.5 agbioforum, 27(1), 2025 | 75 thijeel et al — dividend policy, earnings management and corporate governance: an empirical study of american agribusiness firms table 8: em and cg characteristics of the three groups. groups em cg g1 aggressive downward management poor cg practices g2 upward management control portfolio g3 mild upward management good cg practices table 9: structure matrix. function 1 function 2 managerial ownership 0.749* -0.352 holding 0.697* -0.349 dividend growth rate 0.121* 0.112 debt ratio -.070 0.452* fixed assets / total assets .019 0.487* free cash flow -.044 -0.324* table 10: functions at group centroids. cluster number of case function 1. function 2 1 -0.282 0.378 2 -0.591 -0.280 3 4.547 -0.102 table 11: positioning on the axes and characteristics of the groups. groups propriety managerial holding free-cash-flow g1 g2 high g3 high high groups medium holding free-cash-flow g1 g2 high g3 high high the group with the strongest cg structure and lowest em is marked by high managerial ownership, concentrated ownership, and high dividend pay-out. the negative relationship between managerial ownership and em holds when the manager does not fully own the firm; otherwise, distributing dividends would benefit the manager directly. ownership concentration reduces em by lowering agency costs, as dispersed ownership tends to increase them. finally, dividend pay-outs negatively impact em, indicating that their role as a control mechanism—by limiting free cash flow—outweighs any incentive effect on em. the model is as follows: dai,t = α1 managerial ownership + α2 holding + α3 duality + α4 seniority + α5 charter + α6 big6 + α7 % external in board of directors + α8 % external in audit committee + α9 log of board size + α10 log of audit committee size + α11 log of number of board meetings + α12 log of number of audit committee meetings + α13 expertise + α14 dividend growth rate + εi,t the regression results are presented in table 12. a negative and significant coefficient indicates an inverse relationship between dividend growth rate and da, showing that higher dp correspond to lower da, which supports dp’s role as a cg mechanism. the first group, with weak cg and high em, has a high debt ratio and a high fixed asset ratio to total assets. to manage liquidity needs and avoid conflicts with bondholders over fixed assets, managers often incur high debt secured by firm assets. these investments can be manipulated to benefit managers personally, such as through stock purchases. the second group, acting as a control portfolio, has relatively high free cash flow, which, if not reinvested in profitable projects, could be used for managers’ own benefit. table 12: regression results of da based on cg variables and dividend growth rate. variable coefficient prob. duality .00000 .000 seniority .06123 .000 charter .00000 .001 big6 .00000 .050 expertise .00000 .086 managerial ownership .00000 .008 % external members in the board of directors .00000 0.172 % external members in the audit committee .00000 .023 log of board size .00000 .019 log of audit committee size .00000 .069 log of number of board meetings .00000 .045 log of number of audit committee meetings .00000 .000 holding -.00090 .001 dividend growth rate .00000 .000 conclusion this study offers detailed insights into the interaction between dp, em, and cg within us agribusiness firms. using statistical analysis of 222 firms from 2014 to 2021, it demonstrates that dp influences em, either encouraging or restricting it depending on governance quality. results reveal a strong positive link between dp and em, mainly through discretionary accruals. typically, earnings slightly decline when dividends increase, while larger earnings management occurs when dividends fall. stable dividend growth reduces em efforts and sustains investor confidence. this suggests managers adjust dividends strategically to influence market perceptions and protect earnings amid changing financial conditions. the findings also show that governance quality significantly affects the nature and extent of em. firms with strong governance—characterised by active audit committees, high managerial ownership, and more independent board members—tend to avoid earnings manipulation. conversely, weak governance correlates with aggressive em practices. discriminant analysis highlights which governance features deter or permit em. dp in agribusiness can complement or substitute traditional governance mechanisms by limiting managers’ free cash flow, integrating internal and external financing decisions, agbioforum, 27(1), 2025 | 76 thijeel et al — dividend policy, earnings management and corporate governance: an empirical study of american agribusiness firms and improving governance effectiveness. dp rises with managerial ownership and fixed assets but falls with concentrated ownership and high free cash flow, confirming its role in managing agency conflicts. the study advises policymakers, investors, and regulators to design dividend and governance frameworks addressing sector-specific 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economic sectors on some macroeconomic variables in iraq impact of credit granted to economic sectors on some macroeconomic variables in iraq khudhair abbas hussein al waeli economics department, faculty of administration and economics, university of kerbala, iraq. orcid id: https://orcid.org/0000-0002-1756-2750 email: khudher.abbas@uokerbala.edu.iq kadhim saad alaarajy economics department, faculty of administration and economics, university of kerbala, iraq. orcid id: https://orcid.org/0000-0003-3902-896x email: kadhem.alararjy@uokerbala.edu.iq sultan jasem sultan economics department, faculty of administration and economics, university of kerbala, iraq. orcid id: https://orcid.org/0000-0003-1206-3335 email: sultan.j@uokerbala.edu.iq ahmed abdullah amanah* business administration department, faculty of administration and economics, university of kerbala, iraq. orcid id: https://orcid.org/0000-0001-5092-391x email: ahmed.a@uokerbala.edu.iq in this research, cash credit's influence on private investment and economic growth in iraq from 2009-2023 is examined using the ardl model. the present research examines cash loan allocation to economic sectors. the study found a long-term association between main economic sector credit, economic growth, and private investment in iraq. furthermore, the commerce and restaurant sector were the only sector that experienced a shortterm impact on economic growth, whereas the construction sector exhibited a statistically significant impact and a positive correlation with economic growth. long term, credit has no statistically significant effect on the evolution of the key economic segments. regarding the influence of credit on private investment, throughout both the short as well as long periods the manufacturing and construction industries were the most statistically significant economic sectors. keywords: monetary credit, economic growth, private investment, construction, manufacturing, agricultural sectors. introduction the private sector permanently needs bank credit in order to develop productive projects (barral, 2021). furthermore, credit provides it with an additional source of funding that enables it to build or develop productive capacities (feil & feijó, 2021). it seeks to obtain it from banks that have surplus reserves that it aims to invest (jie et al., 2024). central banks seek to increase the volume of credit approved to economic activity in order to achieve the economic goals they seek to reach, which is to increase the volume of investment to build new productive capabilities or develop current productive capacities (ali & nazmi, 2023), and then provide goods and services through local production instead of importing them from abroad (biygautane, 2023). in the end, it contributes to increasing gdp or economic growth, as well as providing new job opportunities that reduce unemployment rates (huang & lesutis, 2023). there is a critical role of banks in economic growth of any country. the credit allocated by the banks to the government projects helps to grow the infrastructure which is a contribution to economy (jabbour et al., 2023). however, the easy way and target oriented credit allocation is necessary for successful growth of the projects. in addition, when the banks are working effectively with the government departments, the credit related issues are resolved (falchetta et al., 2022). the growth in banks and economic development is necessary which even improves with private investments. there is a critical role of private investments in construction and manufacturing industries which contributes to the economic development and wellbeing of the citizens (mundonde & makoni, 2023). however, the monitoring of these investments and credit allocation can be helpful to work in effective directions by the banks (yurieva et al., 2022). furthermore, the central bank can allocate credit towards economic sectors or between economic activities (tan, 2024). the efficiency of the allocation of credit resources will achieve positive results on the economic activity of the country (dileo, 2023). therefore, the optimal allocation of the financial resource leads to an important result, which is that increasing interest in credit helps to increase gdp, and also helps to alleviate economic problems (blondeel, van doorslaer, & vermeiren, 2024), and then to alleviate the crises that occur from time to time (schroeder, 2023). this research is performed to answer the following questions. rq1: does credit have an impact on investment and economic growth? rq2: how does credit affect investment and growth and what kind of relationship do they have? to answer the questions, the study determines cash loan allocation to economic sectors. the study found a long-term association between main economic sector credit, economic growth, and private investment in iraq. furthermore, the commerce and restaurant sector were the only sector that experienced a short-term impact on economic growth, whereas the construction sector exhibited a statistically significant impact and a positive correlation with economic growth. long term, credit has no statistically significant effect on the evolution of the key economic segments. regarding the influence of credit on private investment, throughout both the short and long periods the manufacturing and construction industries were the most statistically significant economic sectors. literature review the role of economic development is influential in the https://orcid.org/0000-0002-1756-2750 mailto:khudher.abbas@uokerbala.edu.iq https://orcid.org/0000-0003-3902-896x mailto:kadhem.alararjy@uokerbala.edu.iq https://orcid.org/0000-0003-1206-3335 https://orcid.org/0000-0001-5092-391x mailto:ahmed.a@uokerbala.edu.iq agbioforum, 26(2), 2024 | 87 al waeli et al — impact of credit granted to economic sectors on some macroeconomic variables in iraq development of any country and overall potential development (ahmed et al., 2021). the economic development is based on the improvement of private sector businesses in any country. the private sector business is required to contribute enough to gdp of any country which is based on micro and small level business (ashraf, 2021). the corporate level businesses have different sources and investors that can contribute to improve their productivity and performance. however, small and medium businesses are required to have appropriate investment and resources to grow the business. in this way, the role of banking sector is important to provide business opportunities with the help of credit and loans. the loans and credit have the importance of backbone of any business. the development of any business is positively improved when a higher level of satisfaction in the profit-making is achieved (karadima & louri, 2021). on the other hand, when the businesses are failed to get investment and proper loans to improve their business performance and grow into the market, it becomes a destructive situation for the businesses to work sustainably in the market (katuka, mudzingiri, & vengesai, 2023). therefore, the banking sector is required to support the small and medium businesses for their productive growth in the market. the role of bank is to provide loans and credit to small businesses that has a social and economic impact on the country gdp (ashoor, ismaiel, & al-ahmad, 2023). the productive performance of small and medium businesses helps to grow the business active and recruit many people as employed (kim, 2022). this is helpful in circular economy where a significant level of working is required to improve the business performance and practises. however, the banking sectors are mostly concerned to provide business opportunities to the corporate sector businesses (li et al., 2022). the corporate sector businesses play a significant role in contribution to gdp, but the small-scale businesses have or significant role in it (lin & qiao, 2021; lu, huang, & hsu, 2024). the small sector businesses should be supported by the government to develop effective policies and attract the investors to contribute to these businesses. it is a significant way to improve the impact of business an increase the productivity of business performance (mohapatra & purohit, 2021). the modern level of business required development and franchising in different geography. to improve the performance of business and invest in the franchising of business, it is recommended to provide reliable level of loans to businesses. hence, it can support the business in productivity which is needed to increase their overall performance in the market. in the emerging economies, the small businesses face a lot of challenges to get invested by the banks (küçük, özlü, & yüncüler, 2022). even it is challenging for the small and medium businesses to attract the private investors. competitively multinational companies and corporate sector have advantage to get credit and loans from the banking sector (duong et al., 2023). on the one hand, it is significant for the growth and business development to contribute to the economic expansion of the country. on the other hand, the little level of support too small and medium businesses reduces the overall productivity all of them all businesses and their impact to the economic growth (ben bouheni, obeid, & margarint, 2022). therefore, it is essential to provide sufficient loans and credit related schemes to the small and medium businesses that can effectively improve their performance and productivity. in the same way, the small businesses are recommended to work in an effective way that can improve their productivity and performance in the market (danisman, demir, & ozili, 2021). the higher level of investment in small businesses can provide reliable business opportunity to the owners of small businesses which can help them to grow in the market. in different countries, department have different policies to support the small business (ilarslan & yildiz, 2022). it is required for the government to develop useful policies that are reliable to support the small businesses that can have influence on the performance of the business (kalu et al., 2021). in the competitive business environment, it is necessary for the government to provide a level rose resources to the small businesses to convert to the market (hegde & kozlowski, 2021). the attention paid to the small business and by the government factor can improve the productivity and performance. when a business has no opportunity to get credit or loan as compared to the corporate sector, it becomes a challenge for the sustainability of business in the market (ashraf, 2021). in this way, a significant level of working to improve the business performance after activity in marketing required. the business management should be improved with the help of modern tools and equipment including loans. furthermore, these loans help the business owners and management to run the business operations in a fairway (ben bouheni et al., 2022). when the business operations are in a productive way, a higher level of productivity is produced in the business. on the other hand, the management of these businesses should develop a good portfolio to get loans from the banking sector (ashoor et al., 2023). it is helpful for the businesses to sustain in the market and improve their productivity over time. however it is important to enhance the business performance with the assist of loans, but there should be an effective mechanism to return the loans granted by the banks (ahmed et al., 2021). it is a process of binding working between the businesses that can cool the trust with bank and working with the banks in future. methodology we used the ardl model and all of its statistical tests to find out how much of an influence monetary credit had on investment and growth in iraq's economy, in the short as well as long term, and how much of an impact credit had on the economic sectors' ability to achieve growth and increase private investment. data related to economic variables (monetary credit, economic growth, and private investment) were sourced from the official statistics of the central bank of iraq, the annual statistical reports of the banks, and the annual statistical totals issued by the central statistical organization. the ardl model was estimated to estimate the economic growth function and the private investment function, which can be further clarified by the following formula: function 1: agbioforum, 26(2), 2024 | 88 al waeli et al — impact of credit granted to economic sectors on some macroeconomic variables in iraq ∆𝐆𝐃𝐏 = 𝒄 + 𝛌𝐆𝐃𝐏𝐭−𝟏 + 𝛃𝟏𝑨𝑮𝐭−𝟏 + 𝛃𝟐𝐈𝐍𝐃𝐭−𝟏 + 𝛃𝟑𝐓𝐑𝐭−𝟏 + 𝛃𝟒𝑩𝑪𝐭−𝟏 + 𝛃𝟓𝐂𝐃𝐒𝐭−𝟏 ∑ 𝐚𝟏∆𝐆𝐃𝐏𝐭−𝐢 𝐧 𝐢=𝟏 + ∑ 𝐚𝟐∆𝐀𝐆𝐭−𝐢 𝐦 𝐢=𝟎 + ∑ 𝐚𝟑∆𝐈𝐍𝐃𝐭−𝐢 𝐦 𝐢=𝟎+ ∑ 𝐚𝟒∆𝐓𝐑𝐭−𝐢 𝐦 𝐢=𝟎 + ∑ 𝐚𝟓∆𝐁𝐂𝐭−𝐢 𝐦 𝐢=𝟎 + ∑ 𝐚𝟔∆𝐂𝐃𝐒𝐭−𝐢 𝐦 𝐢=𝟎 + 𝛍𝐭 function 2: ∆𝐈𝐍𝐃 = 𝒄 + 𝛌𝐈𝐍𝐃𝐭−𝟏 + 𝛃𝟏𝑨𝑮𝐭−𝟏 + 𝛃𝟐𝐈𝐍𝐃𝐭−𝟏 + 𝛃𝟑𝐓𝐑𝐭−𝟏 + 𝛃𝟒𝑩𝑪𝐭−𝟏 + 𝛃𝟓𝐂𝐃𝐒𝐭−𝟏 ∑ 𝐚𝟏∆𝐈𝐍𝐃𝐭−𝐢 𝐧 𝐢=𝟏 + ∑ 𝐚𝟐∆𝐀𝐆𝐭−𝐢 𝐦 𝐢=𝟎 + ∑ 𝐚𝟑∆𝐈𝐍𝐃𝐭−𝐢 𝐦 𝐢=𝟎+ ∑ 𝐚𝟒∆𝐓𝐑𝐭−𝐢 𝐦 𝐢=𝟎 + ∑ 𝐚𝟓∆𝐁𝐂𝐭−𝐢 𝐦 𝐢=𝟎 + ∑ 𝐚𝟔∆𝐂𝐃𝐒𝐭−𝐢 𝐦 𝐢=𝟎 + 𝛍𝐭 data analysis according to table 1, the growth of cash credit and the percentage granted to the economic sectors, as it was noted that the value of cash credit in 2009 amounted to (5690062) million dinars, then in 2010 it grew to (11721535) million dinars, with a high growing rate of (106%). the growth came because of the recovery of the economy from the mortgage crisis and the rise in oil prices again, then cash credit continued to grow at positive and varying rates during the period 2011-2023, as credit achieved growth at a rate of (14.32%) in 2023. the data in table 1 and figure 1 indicate that the agricultural sector received 7.28% of the credit in 2009, which then decreased to 4.57% in 2010. the percentage of credit to the agricultural sector continued to fluctuate between the rise and fall in the period 2011-2023, as there was a clear decline in 2022 and2023 to (3.52%, 2.98%), respectively, between the lack of interest in the agricultural sector and the weakness of credit provided to it, which makes the role of this sector limited. as for the credit ratio granted to the manufacturing sector, it was also not at the required level, as the credit ratios for this sector in 2009 reached (7.33%). the credit ratio of this sector continued to fluctuate until it decreased in 2020 to (2.79%), which is the lowest percentage achieved by the credit granted to the manufacturing segment during the study period. in 2021 and 2022, the credit ratio of the industrial sector improved to (4.46%, 5.25%), respectively, while it decreased in 2023 to reach the credit ratio granted to this sector (4.09%), indicating the lack of a trend to support the manufacturing sector, as well as continuing to rely on importing from abroad to meet local need. as for the percentage of credit granted to the trade, restaurants and hotels sector, it reached (34.15%) in 2009, and then it decreased in 2010 to (18.41%). it will continue to fluctuate between the rise and fall in the period 2011-2023, according to the central bank, so that the credit ratio of the trade and restaurants sector in 2023 reaches (18.89%). it was also noted that the credit ratio of the construction sector in 2009 was (20.89%), and then it continued to fluctuate until it reached (21.25%) in 2023. as for the community services sector, it was noted that it was the sector that benefited the most from the credit granted, as it was noted that the credit ratio in 2009 was (22.05%), then the period 2010-2023 increased to exceed 35% except for 2020. it reached (14.81%), which is the lowest percentage of the study period, due to the events of the corona pandemic and the accompanying prohibitions and the suspension of many projects, as this decrease was at the expense of the increase in the credit ratio in the same year in the trade sector to reach (42.76%), then the credit ratio granted to the community services sector improved in 2022 and2023, reaching (44.51%) in 2023. with regard to the percentage of credit granted to other sectors (mining and quarrying sector, water and electricity, transport and communications, finance and insurance, the outside world), its share of credit granted was very low, as the percentage of credit granted to these sectors combined in 2009 was (8.31%), and it did not significantly improve during the period 2010-2022, the highest percentage in 2017 was (15.78%), while the percentage of credit to these sectors in 2023 was (8.28%). table 1: growth of cash credit and the relative importance of credit by sectors. year total cash credit (million dinars) growth rate (%) agriculture sector credit ratio of total credit (%) manufacturing sector credit percentage of total credit (%) trade and restaurants sector credit percentage of total credit (%) building and construction sector credit ratio of total credit (%) community services credit percentage of total credit (%) credit ratio of other sectors to total credit (%) 2009 5690062 7.33 7.28 34.15 20.89 22.05 8.31 2010 11721535 106.00 4.88 4.57 18.41 18.52 49.77 3.85 2011 20344076 73.56 6.41 12.32 16.99 20.69 38.15 5.44 2012 28438688 39.79 5.98 5.19 20.39 22.37 37.58 8.48 2013 29952012 5.32 6.04 5.48 16.18 25.94 34.88 11.47 2014 34123067 13.93 5.68 5.85 14.28 26.02 35.82 12.37 2015 36752686 7.71 5.55 6.52 14.27 22.86 38.92 11.88 2016 37180123 1.16 5.73 4.99 15.21 21.3 39.02 13.75 2017 37952830 2.08 4.6 4.57 16.07 20.79 38.19 15.78 2018 38486946 1.41 5.1 4.64 15.51 25.34 35.89 13.51 2019 42052511 9.26 5.15 5.63 18.02 23.76 36.88 10.56 2020 49817737 18.47 4.21 2.79 42.76 20.3 14.81 15.12 2021 52971526 6.33 3.98 4.46 19.22 21.06 35.87 15.41 2022 60576391 14.36 3.52 5.25 16.11 23.68 40.9 10.54 2023 69252894 14.32 2.98 4.09 18.89 21.25 44.51 8.28 source: based on the central bank of iraq, department of statistics and research, annual statistical bulletin 2009-2023, the researchers' findings/ https://cbi.iq/news/view/492 note: the annual development rate was calculated due to the equation: r = 𝒀𝒕−𝒀𝟎 𝒀𝟎 ∗ 𝟏𝟎𝟎% https://cbi.iq/news/view/492 agbioforum, 26(2), 2024 | 89 al waeli et al — impact of credit granted to economic sectors on some macroeconomic variables in iraq figure 1: relative importance of credit distribution to economic sectors for period 2009-2023. source: researchers' work based on table 1. based on table 2 and figure 2, the development of both gdp and private investment in iraq for the period 20092023 was observed, as the gdp in 2009 amounted to (130642187) million dinars, and then achieved an increase in 2010 to (162064565.5) million dinars, with a growing rate of (24.05%). the output continued to rise with growth rates until 2013, after which it declined in 2014 and 2015 with negative growth rates, reaching successively (2.62%, 26.93%). the decrease in prices of oil, exhibited in iraqi economy's rentier nature, gdp, and occupation of terrorist gangs, along with infrastructure destruction, non-oil activities, and trade disruptions, have contributed to the situation. then gdp returned to increase in 2016 to grow positively at a rate of (1.15%), which continued to rise at positive growth rates during the period 2017-2022, except for 2020, which fell at a negative growth rate of (21.91%), the decline resulting from the corona pandemic and the accompanying health bans and the disruption of economic activities, as well as the decrease in oil prices worldwide, to be a double shock to the economy. in 2022, output grew at a positive rate of (27.20%) after the improvement in oil prices and the health situation. as for 2023, gdp achieved a negative growth of (13.84%). the decline in oil prices and decreased production and export quantities post-opec agreement is primarily due to the reduction of production and export quotas for member countries. returning to the data of table 2 and figure 2, it was well-known that the investment in 2009 amounted to (13471242.2) million dinars, then in 2010 it grew at a positive rate of (94.88%), and continued to grow in 2014, but in 2015 and2016 it grew at rates of (9.29-%, 43.33 %) respectively, due to low oil prices and the war with terrorist gangs. then, in 2017, investment grew at a positive rate of (12.64%). investment continued with growth during the period 2018-2022 with varying growth rates except for 2020. it expanded at a negative rate of (69.76%) owing to the consequences of the corona epidemic and the drop in oil prices, which was a major catastrophe for iraq's economy. as for 2022, investment amounted to (36485328.5) million dinars, with a growth rate of (55.41%) compared to 2021. table 2: gdp growth and private investment (million dinars). year gdp growth rate (%) private investment growth rate (%) 2009 130642187.0 13471242.2 2010 162064565.5 24.05 26252776.8 94.88 2011 217327107.4 34.10 37255269.4 41.91 2012 254225490.7 16.98 38139871.0 2.37 2013 273587529.2 7.62 55036676.2 44.30 2014 266420384.5 -2.62 55837402.9 1.45 2015 194680971.8 -26.93 50650572.7 -9.29 2016 196924141.7 1.15 28703209.2 -43.33 2017 221665709.5 12.56 32330275.7 12.64 2018 268918874.0 21.32 38107188.8 17.87 2019 276157867.6 2.69 54580010.0 43.23 2020 215661516.5 -21.91 16502522.4 -69.76 2021 301152818.8 39.64 23476163.6 42.26 2022 383064152.3 27.20 36485328.5 55.41 2023 330046390.6 -13.84 source: central bank of iraq, statistics and research department, annual statistical bulletin (2009–2023)/ https://cbi.iq/news/view/492 * private investment data for 2023 are not available. https://cbi.iq/news/view/492 agbioforum, 26(2), 2024 | 90 al waeli et al — impact of credit granted to economic sectors on some macroeconomic variables in iraq figure 2: gdp growth and private investment in iraq. source: researchers' work based on table 2. measuring and analysing the impact of cash credit on some macro variables standard model characterization and time series stability test: before testing the root of the unit, it is necessary to characterize the standard models and determine the variables used, as follows: gdp= f (ag, ind tr, bc, cds) ………… (1) inv= f (ag, ind tr, bc, cds) …………. (2) whereas: gdp growth. inter-country variations. ag: ratio of agricultural sector credit to total credit. ind: industrial sector credit ratio of total credit. tr: trade, restaurants and hotels sector credit percentage of total credit. bc: percentage of construction sector credit out of total credit. cds: community services sector credit ratio of total credit. semi-annual data were used for credit ratios for the most important economic sectors except the extractive industries sector for the period 2009-2022, as well as gdp and private investment, noting that private investment data for 2023 are not available. for assessing the consistency of the research variables' time series, the e-views 12–based dickie fuller extended test (adf) was used. the objective of this test is to assess the level of integration and to ascertain if the variables are stable or unstable, since they possess a unit root. the findings listed in table 3 were obtained after the variables were tested. table 3 revealed that all variables have stabilized at the 5% and 10% levels, with the exception of the variable (tr) in a constant, a constant & trend, both, or non. this variable will be integrated with a grade i (0), and the initial discrepancies will be presented to me. the variables have stabilized at the 5% and 10% levels with the presence of a, as they are integrated with a grade i (1). therefore, we will use the ardl model to predict the correlation matrix between the investment as well as gdp as well as the link between the cash credits given to key sectors and both the shortand long-term impacts. table 3: unit root test. null hypothesis: the variable has a unit root at level gdp inv ag ind tr bc cds with constant t-statistic -3.5786 -3.4795 1.8284 -3.5128 -2.5483 -3.7538 -2.9209 prob. 0.0139 0.0174 0.9995 0.0175 0.1178 0.0093 0.0583 ** ** n0 ** n0 *** * with constant & trend t-statistic -3.4717 -3.3651 -4.5364 -4.4522 -1.4313 -3.6682 -3.2411 prob. 0.0646 0.0791 0.0070 0.0093 0.8220 0.0439 0.1013 * * *** *** n0 ** n0 without constant & trend t-statistic -3.0765 -3.1226 -2.0450 -2.9363 -0.0439 0.3121 -0.4812 prob. 0.0035 0.0031 0.0414 0.0055 0.6572 0.7680 0.4956 *** *** ** *** n0 n0 n0 at first difference d(gdp) d(inv) d(ag) d(ind) d(tr) d(bc) d(cds) with constant t-statistic -4.2545 -5.5452 -9.9479 -4.6358 -3.6731 -2.5837 -3.1725 prob. 0.0030 0.0001 0.0000 0.0017 0.0124 0.1095 0.0357 *** *** *** *** ** n0 ** with constant & trend t-statistic -4.2883 -4.2414 -3.6055 -5.7496 -4.3975 -2.5415 -6.4597 prob. 0.0125 0.0165 0.0551 0.0008 0.0109 0.3073 0.0001 ** ** * *** ** n0 *** without constant & trend t-statistic -4.3773 -5.6611 -8.8618 -7.3289 -3.7763 -2.5945 -6.7110 prob. 0.0001 0.0000 0.0000 0.0000 0.0006 0.0117 0.0000 *** *** *** *** *** ** *** notes: a: (*) significant at the 10%; (**) significant at the 5%; (***) significant at the 1% and (no) not significant source: created using e-views 12 by researchers. agbioforum, 26(2), 2024 | 91 al waeli et al — impact of credit granted to economic sectors on some macroeconomic variables in iraq estimation of the ardl model for gdp and investment functions the gdp function was approximated using the lag (2) periods, yielding the findings mentioned in table 4. table 4: estimating the function of gdp. variable coefficient std. error t-statistic prob.* gdp (-1) 0.552853 0.158520 3.487594 0.0036 gdp (-2) -0.238350 0.125992 -1.891793 0.0794 ag -2.531881 2.128892 -1.189295 0.2541 ind 0.667520 1.014665 0.657873 0.5213 tr -0.630381 0.759488 -0.830007 0.4205 tr (-1) 0.929335 0.297503 3.123788 0.0075 bc 0.897908 1.945054 0.461637 0.6514 bc (-1) 0.430068 1.928615 0.222993 0.8268 bc (-2) -4.402392 1.651325 -2.665975 0.0184 cds 0.264323 0.563829 0.468799 0.6464 c 68.84136 55.61041 1.237922 0.2361 r-squared 0.960483 mean dependent var 9.843653 adjusted r-squared 0.932256 s.d. dependent var 17.81200 s.e. of regression 4.636047 akaike info criterion 6.205783 sum squared resid 300.9011 schwarz criterion 6.742088 log likelihood -66.57228 hannan-quinn criter. 6.354531 f-statistic 34.02753 durbin-watson stat 2.009143 prob(f-statistic) 0.000000 source: developed by the current study using e-views 12. table 4 displays the model estimation results. the independent variables that are involved in the model account for 96% of the changes in gdp, as indicated by the model's explanatory power r2 (0.96). the remaining 4% is attributed to factors not accounted for within the model. the r-squared value changed to 93%. with a 5% level, the f-statistic value of (34.02) indicated that the morale of the model was moral, less than the 5% prob (f-statistic). consequently, the null hypothesis was rejected. regarding the best lag test for the estimated model in figure 3, the akaike criteria revealed that the best lag was (2, 0, 0, 1, 2, 0). 6.20 6.22 6.24 6.26 6.28 6.30 6.32 mo de l22 8 mo de l33 5 mo de l33 6 mo de l41 6 mo de l14 7 mo de l41 7 mo de l40 6 mo de l25 4 mo de l22 7 mo de l46 2 mo de l21 9 mo de l20 1 mo de l66 mo de l40 8 mo de l17 4 mo de l92 mo de l32 7 mo de l17 3 mo de l16 3 mo de l93 akaike information criteria (top 20 models) model228: ardl(2, 0, 0, 1, 2, 0) model335: ardl(1, 1, 2, 1, 2, 1) model336: ardl(1, 1, 2, 1, 2, 0) model416: ardl(1, 0, 2, 1, 2, 1) model147: ardl(2, 1, 0, 1, 2, 0) model417: ardl(1, 0, 2, 1, 2, 0) model406: ardl(1, 0, 2, 2, 2, 2) model254: ardl(1, 2, 2, 1, 2, 1) model227: ardl(2, 0, 0, 1, 2, 1) model462: ardl(1, 0, 0, 2, 2, 0) model219: ardl(2, 0, 0, 2, 2, 0) model201: ardl(2, 0, 1, 1, 2, 0) model66: ardl(2, 2, 0, 1, 2, 0) model408: ardl(1, 0, 2, 2, 2, 0) model174: ardl(2, 0, 2, 1, 2, 0) model92: ardl(2, 1, 2, 1, 2, 1) model327: ardl(1, 1, 2, 2, 2, 0) model173: ardl(2, 0, 2, 1, 2, 1) model163: ardl(2, 0, 2, 2, 2, 2) model93: ardl(2, 1, 2, 1, 2, 0) figure 3: estimated model optimal lagging. source: created using e-views 12 by researchers. bounds test for gdp function as shown in table 5, the estimated model's variables were subjected to the bounds test to ascertain their long-term equilibrium connection. the f-statistic for the bounds test was (6.39), as the table shows; this value exceeds the higher tabular value at the 5% significance level (3.38). long-term equilibrium exists for model variables. thus, we reject the null hypothesis and embrace the long-term equilibrium hypothesis. table 5: bounds test of the gdp function. f-bounds tes t null hypothesis: no levels relationship test statistic value signif. i (0) i (1) f-statistic 6.391896 10% 2.08 3 k 5 5% 2.39 3.38 2.5% 2.7 3.73 1% 3.06 4.15 source: created using e-views 12 by researchers. estimated model testing serial correlation and heteroscedasticity test table 6 displays the estimated model test for the breuschgodfrey serial correlation and lm test heteroscedasticity problems with serial correlation. according to the prob value, the f and chi-square values are not significant at the 5% significance level. the model is unaffected by the serial correlation and heteroscedasticity test. thus, we may accept the null and reject the alternative. agbioforum, 26(2), 2024 | 92 al waeli et al — impact of credit granted to economic sectors on some macroeconomic variables in iraq table 6: serial correlation and heteroscedasticity test. breusch-godfrey serial correlation lm test: f-statistic 0.001269 prob f (1,13) 0.9721 obs*r-squared 0.002441 prob chi-square 0.9606 heteroskedasticity test: breusch-pagan-godfrey f-statistic 2.029315 prob f (10,14) 1098 obs*r-squared 14.79388 prob chi-square 1398 scaled explained ss 6.671085 prob chi-square 7,561 source: prepared by researchers using e-views 12. normal distribution test of residuals figure 4 illustrates the results of the model's normal distribution test. the value of (jarque-bera) (1.43) was nonsignificant at a significance level of 5%, as indicated by the value of (prob.) which was greater than 5%. consequently, the remaining data will be normally distributed. 0 2 4 6 8 10 12 -10.0 -7.5 -5.0 -2.5 0.0 2.5 5.0 7.5 series: residuals sample 2010s1 2022s1 observations 25 mean 6.67e-15 median 0.219323 maximum 7.270857 minimum -9.570662 std. dev. 3.540839 skewness -0.390476 kurtosis 3.875864 jarque-bera 1.434399 probability 0.488117 figure 4: normal distribution test of residuals. source: prepared by researchers using e-views 12. estimated model stability test the structural test of the calculated framework is shown in figure 5. the estimated model is stable in the near run, as shown by the cumulative total test of the residuals in part a, which was within the essential restrictions at the 5% significant level. the projected model seems to be stable in the short and long future, since the cumulative total test of the remaining squares in part b was also within the critical limitations at the 5% level. figure 5: structural stability test. source: prepared by researchers using e-views 12. error correction model and long-term relationship as with prob, the outcomes of table 7 show that there is a statistically significant correlation between gdp growth and growth from a preceding era at the 5% level. in accordance with economic theory, a 1% upsurge in output growth for the earlier period resulted in a 0.238% increase in gdp growth. the credit of the trade and restaurant sector is inversely correlated with the growth of output. the relationship is significant at the 5% level, with a 1% increase in sector credit causing a 0.63% decrease in output. this is in direct opposition to economic theory, as the sector is reliant on foreign imports to reduce the local production of goods. therefore, if this industry is given more credit, it will increase imports, which will lower gdp. there was a direct correlation between gdp and the amount of credit extended to the construction industry in the prior period; according to economic theory, a 1% increase in lending to the industry in the prior period would result in a 4.4% increase in output, and this correlation is statistically significant at the 5% level. we note that the credit granted to this sector is the most influential in gdp because this sector is rapidly expanding. due to prob, the error correction parameter is statistically important at the 5% level. as it is negative, it reaches (0.68-), 68% of the errors are rectified in the same period towards the longterm equilibrium value, with the remaining percentage adjusted in the next period. agbioforum, 26(2), 2024 | 93 al waeli et al — impact of credit granted to economic sectors on some macroeconomic variables in iraq table 7: error correction model for gdp function. ecm regression case 2: restricted constant and no trend variable coefficient std. error t-statistic prob d (gdp (-1)) 0.238350 0.064906 3.672236 0.0025 (tr) -0.630381 0.209285 -3.012061 0.0093 bc 0.897908 0.807234 1.112327 2847 d (bc (-1)) 4.402392 1.286431 3.422174 0.0041 cointeq (-1) * -0.685498 0.085742 -7.994934 0.0000 source: prepared by researchers using eviews 12. all factors were found to be non-significant at a significance level of 5%, corresponding to the long-term association data shown in table 8. in summary historically, when looking at both the short and long term, the construction sector's credit had the greatest impact on gdp growth. table 8: the long-term relationship of the gdp function. variable coefficient std. error t-statistic prob ag -3.693493 2.707254 -1.364295 1940. ind 0.973775 1.342086 0.725568 4801 tr 0.436113 0.827534 0.527003 0.6064 bc -4.484939 2.459198 -1.823740 0.0896 cds 0.385592 0.763104 0.505295 6212 c 100 95.22527 1.054608 3095 ec = gdp(-3.6935*ag + 0.9738*ind +0.4361* tr-4.4849*bc + 0.3856 *cds + 100.4254) source: prepared by researchers using eviews 12. estimating the ardl model of the investment function the periods of lag (2) were used to estimate the investment function. he won't get the outcomes shown in table 9 below. table 9: ardl model of investment function. variable coefficient std. error t-statistic prob.* inv (-1) 0.266267 0.239456 1.111967 0.3029 inv (-2) -0.931563 0.169524 -5.495165 0.0009 ag -19.26094 9.884916 -1.948518 0.0924 ag (-1) 13.96110 15.70714 0.888838 0.4036 ag (-2) 12.87010 10.44693 1.231950 0.2577 ind 25.08281 6.563798 3.821387 0.0065 ind (-1) -1.197871 4.335050 -0.276322 0.7903 ind (-2) -6.905149 3.311890 -2.084957 0.0755 tr 15.05820 4.389635 3.430399 0.0110 tr (-1) 2.101635 3.853750 0.545348 0.6024 tr (-2) -5.180871 3.564629 -1.453411 0.1894 bc 25.38643 5.669004 4.478111 0.0029 bc (-1) 0.817371 5.134602 0.159189 0.8780 bc (-2) -10.84435 4.878467 -2.222901 0.0616 cds 13.74095 3.378158 4.067585 0.0048 cds (-1) 0.841811 3.241279 0.259716 0.8026 cds (-2) -4.267350 3.657120 -1.166861 0.2815 c -1058.740 308.0478 -3.436935 0.0109 r-squared 0.987318 mean dependent var 15.70940 adjusted r-squared 0.956518 s.d. dependent var 36.33662 s.e. of regression 7.577078 akaike info criterion 7.055167 sum squared resid 401.8848 schwarz criterion 7.932757 log likelihood -70.18958 hannan-quinn criter. 7.298573 f-statistic 32.05566 durbin-watson stat 1.800091 prob(f-statistic) 0.000052 source: prepared by researchers using e-views 12. table 9 shows model estimation results. if the model's explanatory capacity was 0.98, the independent variables would explain 98% of local investment changes. the remaining percentage is attributable to variables that were not incorporated into the model. the adjusted r-squared value was 95%. the f-statistic of 32.05 for the model proved its relevance as, using the prob (f-statistic) value. the null hypothesis will be rejected, and the alternative hypothesis will be adopted, as this value is less than 5%. the optimal lag was determined to be (2, 2, 2, 2, 2, 2) in accordance with the akaike criteria for the optimal default test of the estimated model represented in figure 6. agbioforum, 26(2), 2024 | 94 al waeli et al — impact of credit granted to economic sectors on some macroeconomic variables in iraq 7.05 7.10 7.15 7.20 7.25 7.30 7.35 m od el 1 m od el 3 m od el 2 m od el 84 m od el 19 m od el 82 m od el 21 m od el 83 m od el 10 m od el 12 m od el 10 0 m od el 12 7 m od el 20 m od el 11 m od el 11 1 m od el 13 0 m od el 10 3 m od el 11 0 m od el 46 m od el 10 2 akaike information criteria (top 20 models) model1: ardl(2, 2, 2, 2, 2, 2) model3: ardl(2, 2, 2, 2, 2, 0) model2: ardl(2, 2, 2, 2, 2, 1) model84: ardl(2, 1, 2, 2, 2, 0) model19: ardl(2, 2, 2, 0, 2, 2) model82: ardl(2, 1, 2, 2, 2, 2) model21: ardl(2, 2, 2, 0, 2, 0) model83: ardl(2, 1, 2, 2, 2, 1) model10: ardl(2, 2, 2, 1, 2, 2) model12: ardl(2, 2, 2, 1, 2, 0) model100: ardl(2, 1, 2, 0, 2, 2) model127: ardl(2, 1, 1, 0, 2, 2) model20: ardl(2, 2, 2, 0, 2, 1) model11: ardl(2, 2, 2, 1, 2, 1) model111: ardl(2, 1, 1, 2, 2, 0) model130: ardl(2, 1, 1, 0, 1, 2) model103: ardl(2, 1, 2, 0, 1, 2) model110: ardl(2, 1, 1, 2, 2, 1) model46: ardl(2, 2, 1, 0, 2, 2) model102: ardl(2, 1, 2, 0, 2, 0) figure 6: optimal lag of the investment function. source: developed by the current study using e-views 12. bounds test for investment function the bounds test was used to assess the long-term equilibrium of the estimated model's variables, as shown in table 10. the f-statistic for the bounds test was (6.15), which is higher than the higher tabular value at the significance level of 5% (3.38). the model's variables show a connection of long-term equilibrium. consequently, we will accept the alternative hypothesis, which presupposes a long-term equilibrium connection, and reject the null hypothesis. table 10: bounds testing of the investment function. f-bounds tes t null hypothesis: no levels relationship test statistic value signif. 0 i i (1) f-statistic 6.159613 10% 2.08 3 k 5 5% 2.39 3.38 2.5% 2.7 3.73 1% 3.06 4.15 source: prepared using e-views 12 by researchers. estimated model testing serial correlation and heteroscedasticity test the model was tested for serial correlation and heterogeneity using the breusch-godfrey serial correlation (lm test) and non-significant f and chisquare values at the 5% significance level (prob). table 11 displays that the model is unaffected by serial correlation and heteroscedasticity, as both tests yielded findings greater than 5%, demonstrating that the null hypothesis is established and the alternate hypothesis not supported. table 11: serial correlation and heteroscedasticity test. breusch-godfrey serial correlation lm test: f-statistic 0.076792 prob f (1,6) 7910 obs*r-squared 0.315922 prob chi-square 5741 heteroskedasticity test: breusch-pagan-godfrey f-statistic 1.206189 prob f (17,7) 4225 obs*r-squared 18.63757 prob chi-square 3497 scaled explained ss 2.667669 prob chi-square 1.0000 source: prepared by researchers using e-views 12. normal distribution test of residuals the normal distribution test is illustrated in figure 7, and the value of 2.86 is not statistically significant at a 5% significance level. this is a result of the fact that the value of (prob.) exceeds 5%. as a result, the remaining data will be distributed normally. 0 1 2 3 4 5 6 7 8 9 -10 -5 0 5 10 series: residuals sample 2010s1 2022s1 observations 25 mean 0.000000 median 0.431357 maximum 10.54315 minimum -10.92554 std. dev. 4.092090 skewness -0.078010 kurtosis 4.651376 jarque-bera 2.866027 probabil ity 0.238589 figure 7: normal distribution test of residuals. source: prepared by researchers using e-views 12. agbioforum, 26(2), 2024 | 95 al waeli et al — impact of credit granted to economic sectors on some macroeconomic variables in iraq c. estimated model stability test figure 8 illustrates the structural evaluation of the projected model. the estimation model is short-term stable, as evidenced by the cumulative total test of the residuals in part a, which was within the essential restrictions at the 5% significance level. the estimated model seems to be stable in the short and long future, since the cumulative total test of the remaining squares in part b was also within the critical limitations at the 5% level. figure 8: model structural stability test. source: created using eviews 12by researchers. error correction model and long-term relationship the findings of the error correction model for the investment function are depicted in table 12. the current investment is directly correlated with the investment from the previous period, which is significant at the 5% level, as denoted by prob. specifically, an increase of 1% in the investment from the previous period results in a 0.93% increase in the current investment, which is coherent with economic theory. as for the credit of the agricultural sector, it has an inverse relationship with investment, which is moral at the level of 5%, that is, the rise in the percentage of credit granted to the trade and restaurant sector by 1%, the investment decreases by 19.26%, contrary to the economic theory, as most of the projects that were established were temporary and unrealistic projects because the goal is to obtain loans, especially in the field of livestock. the prob value for the variables (ind, ind (-1), tr, tr (-1), bc (-1), cds, cds (-1)) was statistically significant at the 5% level, demonstrating a positive correlation with investment. this is in accordance with the logic of economic theory, which posits that a 1% rise in these variables’ findings in a corresponding rise in investment in percentages (25.08%, 6.9%, 15.05%, 5.18%, 25.38%, 10.84%, 13.74%, 4.26%). specifically, the construction and manufacturing sectors are the most influential sectors in terms of investment, as they will introduce new fixed capital. the trade and restaurant sector and community services sector follow that order. the error correction parameter is substantial at the 5% level, as referred to by the value of prob, and it is negative (1.66-). this suggests that the long-term equilibrium value is achieved by a rapid rate of adjustment, provided that all defects are rectified within the same period. table 12: investment function error correction model. ecm regression case 2: restricted constant and no trend variable coefficient std. error t-statistic prob d (inv (-1)) 0.931563 0.087369 10.66234 0.0000 ag -19.26094 5.408455 -3.561265 0.0092 d (ag (-1)) -12.87010 7.175486 -1.793620 1160 ind 25.08281 2.800111 8.957791 0.0000 d (ind (-1)) 6.905149 1.958942 3.524937 0.0097 (tr) 15.05820 2.551541 5.901612 0.0006 d (tr (-1)) 5.180871 1.446472 3.581728 0090 bc 25.38643 3.076863 8.250751 0.0001 d (bc (-1)) 10.84435 2.328378 4.657470 0.0023 d 13.74095 1.905537 7.211062 0.0002 d (cds (-1)) 4.267350 1.285045 3.320778 [0128] cointeq(-1) * -1.665296 0.186099 -8.948462 0.0000 source: prepared by researchers using e-views 12. as for the long term, we note from table 13 that all the variables were significant at a significant level of 5%, except for the percentage of credit to the agricultural sector. it was immaterial and correlated with a direct relationship with investment. in particular, economic theory predicts that a 0.19% rise in investment would follow a 1% improvement in credit extended to the industrial sector. the study discloses that a 1% increase in the trade and restaurant sector's credit ratio leads to a 7.19% increase in investment, while a 1% increase in the agbioforum, 26(2), 2024 | 96 al waeli et al — impact of credit granted to economic sectors on some macroeconomic variables in iraq construction sector outcome in a 9.22% increase in investment, and a 1% upsurge in the community services sector leads to a 6.19% rise in investment. table 13: long-term relationship of the investment function. variable coefficient std. error t-statistic prob ag 4.545893 4.081330 1.113826 3021 ind 19626 2.538589 4.016508 0.0051 tr 7.193297 1.471221 4.889340 0.0018 bc 9.223259 2.270463 4.062281 0.0048 cds 6.194341 2.101784 2.947183 0215 c 635 129 -4.906944 0.0017 ec = inv (4.5459*ag + 10.1963*ind + 7.1933*tr + 9.2233*bc + 6.1943 *cds 635.7670) source: prepared by researchers using e-views 12. discussion of results the community services sector received the highest credit percentage, followed by construction, trade, obedience, and hotels, and industry and agriculture, with the latter ranking fourth and fifth, respectively. in regard to the influence of credit on macroeconomic variables, we find, in agreement with previous research (kismawadi, 2024), that bank lending for economic sectors has a long-term equilibrium connection with gdp growth. we observe that the credit of the wholesale trade sector, restaurants, and construction sector has a moral impact in the short term with respect to the influence of credit on gdp growth. in the long term, the moral impact is restricted to the construction sector. however, it was the opposite, as the construction sector is reliant on the import of raw materials from abroad, which represents a leakage element of gdp, as the sector's activity increases. furthermore, the findings of the study in the long term contradict the findings of some studies, including (foglia, 2022) and the study of utouh & kitole (2024), which found a positive long-term relationship between credit and economic growth. the results contradict the findings due to iraq's heavily reliant gdp on the oil sector, which generates growth. economic sector credit did not impact gdp growth, while construction sector credit negatively impacted output growth due to its dependence on foreign raw materials imports, resulting in a negative influence on output growth. the investment function demonstrates a long-term equilibrium link between credit and investment growth, in line with earlier findings (wu, wu, & zhao, 2022). as for the credit effect on the growth of private investment, there are positive effects of the trusts granted to some sectors on investment, this matches the results of the study saleem, sági, & setiawan (2021). the main sector affecting investment is credit to the industrial sector in the first place, because it adds new productive projects to investment in the country, followed by the construction and trade sector restaurants, the latest of which is the community services sector, which is the least expensive, although it accounts for the largest percentage of credit granted. these findings match those of studies that have included a positive correlation to credit in private investment. as for the credit of the agricultural sector, it did not have a significant effect on investment, as this sector suffers from the decline in the credit granted to this sector, the lack of the necessary support, the scarcity of water and many other reasons. conclusions the results proved that the impact of credit granted to economic sectors is a specific impact of some economic sectors on gdp in the long term represented by the construction sector. the study reveals that forbidden credit positively impacts long-term investment in all economic sectors, except for agriculture, confirming the hypothesis based on its impact on investment. furthermore, the lack of a balanced policy in supporting economic sectors through credit, so the credit ratio fluctuates along the chain, in addition to the fact that credit ratios were low for some sectors. the study found the directing the largest percentage of credit towards the service sectors without the main productive sectors represented by the agricultural and industrial sectors, this led to a decline in the productivity of these two sectors, and dependence on the outside to meet the needs through the import of agricultural and industrial goods, which made the iraqi economy exposed to crises and economic problems such as imported inflation. furthermore, the study uncovered a long-term equilibrium relationship between credit granted to economic sectors and growth and investment in iraq during the studied period. in addition, the credit granted to the main economic sectors has positive effects on private investment in iraq, because it adds to the formation of capital through new projects or infrastructure, so it can support the growth of investment. accordingly, the rentier nature of the iraqi economy has led to a focus on service sectors, benefiting from the rentier revenues of the oil sector, which accounts for the largest percentage of gdp structure, making the economy vulnerable to external shocks, particularly when oil prices fall. implications the results of this study have significant implications for policymakers, financial institutions, and economic stakeholders in iraq, highlighting the nuanced impact of credit allocation on economic growth and private investment. first, the identification of a long-term correlation between credit allocation and economic growth underscores the importance of targeted credit policies aimed at fostering sustainable economic development. policymakers should prioritize strategic credit distribution to sectors with high growth potential, particularly construction and manufacturing, as these sectors exhibit significant shortand long-term effects on economic performance. second, the lack of a statistically significant agbioforum, 26(2), 2024 | 97 al waeli et al — impact of credit granted to economic sectors on some macroeconomic variables in iraq long-term impact of credit on the evolution of key economic sectors suggests that existing credit policies may lack sufficient focus or alignment with sector-specific needs. financial institutions should enhance their credit assessment frameworks to identify and address the structural challenges within economic sectors, promoting more efficient resource allocation. third, the study's emphasis on the short-term impact of credit on the commerce and restaurant sector suggests that these industries may offer rapid economic returns, potentially serving as focal points for immediate economic revitalization efforts. however, overreliance on short-term growth must be balanced with long-term sectoral development strategies. finally, the study emphasizes the pivotal role of manufacturing and construction sectors in driving private investment. this finding calls for integrated policy approaches that combine credit facilitation with infrastructural and technological support to stimulate private sector dynamism and industrial innovation. overall, the research contributes to a more refined understanding of sectoral credit allocation and its macroeconomic implications, serving as a foundation for more evidence-based economic policy formulation in iraq. future directions the findings of this research are significant for knowledge and implication regarding the impact of credit granted to economic sectors on some macroeconomic variables in iraq. however, future studies are required to collect survey-based data to reach on findings. the data should be collected from personnel of the department of economic and financial policies to provide a different insight into the findings of the study. in this way, scholarly contributions would be helpful to provide a different approach and new 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p < 0.05). conversely, increased pufa intake and shorter sleep duration reduced osteoporosis risk (odds ratio = 0.406, p = 0.05). omega-3 polyunsaturated fatty acids may reduce sleep deprivation's negative effects, according to research. these findings add to the evidence that polyunsaturated fatty acids (pufas) benefit bone health. however, high polyunsaturated fatty acid intake may raise osteoporosis risk. adding moringa oleifera leaves and pufas to the diet may help older persons maintain bone density. moringa may mitigate omega-6 polyunsaturated fatty acid effects by boosting calcium and reducing inflammation. moringa leaves are rich in calcium, magnesium, vitamins a and c. along with complete treatment, lowering omega-6 fatty acid consumption may help osteoporosis patients with sleeplessness. moringa has anti-inflammatory benefits, however some people react negatively. these findings suggest that public health campaigns should promote healthy eating in older persons. including polyunsaturated fats with moringa oleifera leaves in diets may be beneficial. educational efforts should emphasise the benefits of moringa in an omega-3 fatty acid-rich diet for sleep, bone health, and polyunsaturated fatty acid reduction. keywords: polyunsaturated fatty acids (pufa), insomnia, osteoporosis, bone mineral density, sleep disturbances, aging population, china, moringa oleifera leaf. introduction there is considerable interest in moringa oleifera leaf extracts for treating age-related bone problems like osteoporosis. moringa oleifera, the "miracle tree," is rich in magnesium, calcium, and vitamin c. these bioactive chemicals are antioxidants and anti-inflammatory. das (2024) and zhang & wu (2024) found that moringa supplements ameliorate osteoporosis symptoms including inflammation and bone density. several studies suggest that moringa leaves may slow or reverse bone loss and promote bone growth. these benefits are due to the plant's oxidative stress reduction and calcium absorption. omega3 pufas may reduce inflammation and strengthen bones, making them a viable treatment for osteoporosis (chen et al., 2024; wang et al., 2022). degenerative skeletal condition osteoporosis reduces bone mineral density (bmd) and increases bone fragility. this condition is a global health issue, especially for the elderly. the illness increases fracture risk and lowers quality of life. elderly ladies and men are vulnerable. dietary variables, particularly polyunsaturated fatty acids (pufas), and sleep disorders such insomnia have been linked to bone health (calder, 2006; wang et al., 2022). although osteoporosis is an increasing concern, biological and lifestyle factors affect its progression. a common sleep problem, insomnia, causes trouble sleeping or staying asleep. this causes short sleep and low quality. multiple studies have connected chronic sleep disturbances to metabolic changes, higher cortisol levels, and decreased growth hormone synthesis, which significantly impact bone mineral metabolism (swanson, 2022). sleep deprivation increases osteoporosis risk by causing bone resorption (petrov et al., 2024). older persons are more at risk because hormonal changes increase bone loss (tang et al., 2021). recent research suggests that essential fatty acids, especially long-chain polyunsaturated omega-3 and omega-6 fatty acids, may maintain bone health. phospholipid-based fatty acids (pufas) regulate inflammation, lipid metabolism, and cell signalling. polyunsaturated fatty acids influence osteoblastic and osteoclastic activity, improving bone density, mass, and strength (chen et al., 2024; tao et al., 2022). omega-3 fatty acids may slow osteoporosis by mailto:shan.phdscholar@lincoln.edu.my mailto:suriyakala@lincoln.edu.my agbioforum, 26(2), 2024 | 141 shan & chandran — the role of polyunsaturated fatty acids and moringa oleifera leaf in primary osteoporosis induced by insomnia reducing inflammation (das, 2024). dietary changes like eating more omega-3 fatty acids and soy may also help prevent estrogen-related bone loss. sleep disruptions, polyunsaturated fatty acids, and osteoporosis risk are actively studied. chronic insomnia affects the hpa axis and inflammatory pathways, worsening bone loss. pufas are anti-inflammatory, unlike saturated fatty acids, which may mitigate sleep deprivation's impact on bone density (swanson, 2022). elderly people are more likely to have sleep difficulties and nutritional inadequacies that increase osteoporosis risk (feehan et al., 2023). older people are also more likely to develop type 2 diabetes and cardiovascular disease, which share metabolic pathways with osteoporosis. the exact processes by which pufas affect bone health in chronic insomniacs are unknown. environmental issues like pollution might also cause osteoporosis. air, water, and soil pollution cause illness and early death. a steady, nutrient-rich food supply depends on soil health. heavy metals, herbicides, plastic debris, and over fertilisation alter soil microbiology, releasing dangerous compounds into groundwater (münzel et al., 2023). aquatic habitats are threatened by agricultural runoff, industrial pollution, and home sewage. polluted air contains volatile organic compounds, greenhouse gases, and particle matter, which can cause respiratory, cardiovascular, and cancer (rather et al., 2023). with an ageing population, osteoporosis has increased in china. according to the 2004 china osteoporosis prevalence study, those over 50 had a 20% higher risk of osteoporosis. recent data from wang et al. (2021) confirm postmenopausal women and older men's increased risk. certain plants may solve health and ecological issues despite environmental concerns. moringa oleifera, a nutritious and therapeutic plant, may be used in sustainable agriculture and ecosystem restoration. this study examines moringa oleifera's phytochemical and bioactive qualities for health and environmental advantages. increased consumption of processed foods high in omega6 fatty acids and decreased intake of omega-3-rich seafood have been associated to bone health decline (zhang & wu, 2024). research showing a high frequency of insomnia and poor sleep quality in older chinese adults suggests dietary changes may affect bone density. yan et al. (2024) say some medical problems enhance osteoporosis risk. china's ageing population is suffering from more sleep difficulties, thus this study investigates dietary solutions. moringa oleifera leaves, pufas, sleep problems, and primary osteoporosis in elderly people are the focus of this study. since osteoporosis causes decreased bone density and an increased risk of fractures, nutrition and sleep are crucial to disease progression. insufficient sleep hinders bone remodelling, which is needed for regeneration. this research tries to uncover dietary recommendations that may reduce geriatric osteoporosis and sleeplessness, which are common. omega-3 polyunsaturated fatty acids are osteoprotective and anti-inflammatory, according to research. the goal of this study is to examine their impacts. moringa oleifera leaves contain bioactive substances that may replace bone health treatments. moringa supplementation will be compared to standard treatment in this study. cost-effective, accessible dietary treatments like vitamin-fortified pills to help older chinese manage sleep problems and osteoporosis are a priority. this study advocates for environmentally sustainable agriculture by highlighting the synergistic effects of moringa oleifera leaves and omega-3 polyunsaturated fatty acids. these activities aim to improve long-term health and quality of life for elderly osteoporosis patients. literature review the role of polyunsaturated fatty acids and moringa oleifera leaf in primary osteoporosis induced by insomnia: pathophysiological mechanisms and agricultural implications the moringa oleifera plant, originally found in the tropical and equatorial regions of india, is a common sight in these areas. it has spread rapidly across various parts of the world, including cambodia, the philippines, and numerous african, central american, and caribbean nations. moringa oleifera has long been recognized in traditional medicine for its remarkable ability to thrive in dry environments. historical ayurvedic texts show that this plant has been used for medicinal purposes since 150 bc, treating conditions such as skin problems, lung congestion, anaemia, and blood impurities. known as the "miracle tree," moringa is celebrated not only for its adaptability and health benefits but also for its ability to address nearly 300 different medical conditions. due to its impressive nutritional content and bioactive properties, moringa oleifera is frequently referred to as a "superfood" in the food industry. its pufas, antioxidants, vitamins, and amino acids make it an effective alternative for those suffering from primary insomnia caused by osteoporosis. aside from its leaves, seeds, roots, bark, flowers, and fruits, moringa oleifera likely has additional uses. its seeds contain around 75% polyunsaturated fatty acids and are known for their anti-inflammatory, cholesterol-lowering, and bone-health-promoting properties. abd el-hack et al. (2018) highlight the presence of βcarotene, provitamin a carotenoids, minerals, vitamins a and b, and various other bioactive compounds that exhibit antibacterial, anti-inflammatory, and antioxidant activities. some of the key molecules identified include phenolics, chlorogenic acid, kaempferol, and flavonoids. current research suggests that moringa oleifera has potential not only in medicinal applications but also in ecological ones. it has shown promise in treating a variety of ailments, including cholera, osteoporosis, pneumonia, and cardiovascular diseases. the plant's phytochemicals, such as eugenol, tannins, and saponins, help reduce inflammation and oxidative stress, enhancing its ability to treat osteoporosis related to sleep disturbances. beyond health benefits, moringa has significant potential for environmental applications, including soil restoration and water purification. companies that prioritize sustainable farming practices can benefit greatly from exploring ways to combat desertification and enhance soil fertility. moringa oleifera thrives on disturbed soils, making it a valuable resource. techniques like coagulation are employed to grow seedlings and purify water. agbioforum, 26(2), 2024 | 142 shan & chandran — the role of polyunsaturated fatty acids and moringa oleifera leaf in primary osteoporosis induced by insomnia osteoporosis and bone health: prevalence and risk factors osteoporosis is a global health concern, particularly affecting the elderly and women after menopause. this condition is marked by reduced bone mineral density, alterations in the structure of trabecular and cortical bone, and increased bone fragility, which raises the likelihood of fractures (sabri et al., 2023). osteoporosis is often asymptomatic, meaning that fractures may occur before the condition is diagnosed. fragility fractures, especially hip fractures, are strongly linked to higher mortality rates and significant morbidity in older adults. therefore, early detection and preventive measures are crucial (sabri et al., 2023). osteoporosis is prevalent on all five continents, but its occurrence varies across regions due to factors such as genetics, environmental influences, and access to healthcare. liu et al. (2014) found that in china, 36% of women and 13% of men aged 50 and older are affected by osteoporosis, with urban populations showing higher rates. a study conducted by wang et al. (2021), known as the china osteoporosis prevalence study, suggests that this increase in prevalence is linked to an aging population, dietary changes, reduced physical activity, and insufficient vitamin d due to limited sun exposure in cities (zhang & wu, 2024). moreover, rapid urbanization, reduced intake of local omega-3 fatty acid sources, and lifestyle changes may worsen the impact of osteoporosis (wang et al., 2022). the decline in estrogen production after menopause is a major factor in the development of osteoporosis, especially among postmenopausal women. estrogen plays a vital role in bone health by inhibiting bone breakdown and encouraging bone formation (vilaca, eastell, & schini, 2022). a decrease in estrogen accelerates bone turnover, increasing bone resorption and raising fracture risk. although osteoporosis is commonly thought to affect women more than men, aging men are also at risk. as testosterone levels decrease with age, men experience bone loss as well (diab & watts, 2021). however, osteoporosis in men is often underdiagnosed and undertreated, despite its significant impact on health (vilaca et al., 2022). in addition to hormonal changes, various factors contribute to osteoporosis, including lack of physical activity, smoking, alcohol use, poor diet, and genetic factors (fang et al., 2023). nutrition plays a critical role in bone health, with calcium and vitamin d being essential for bone formation. however, recent studies emphasize the importance of polyunsaturated fatty acids (pufas) in regulating bone metabolism and promoting bone health (chen et al., 2024; tao et al., 2022). insomnia and its impact on bone health sleep disorders include insomnia, which causes trouble falling or staying asleep, can lead to metabolic, cardiovascular, and musculoskeletal issues (swanson, 2022). recent research have examined how sleep disruptions and chronic insomnia affect bone health and integrity (swanson, 2021). sleep disruptions can impair hormone balance and bone metabolism petrov et al. (2024). over time, sleep deprivation raises cortisol, which promotes osteoclasts, which break down bone tissue and resorb bone (swanson, 2022). the condition is accompanied by a decrease in growth hormone, which is essential for bone formation and maintenanc e (ochs‐ balcom et al., 2020). insufficient sleep stimulates the hpa stress response, which produces cortisol, which slows bone regeneration (swanson, 2022). bone resorption and formation imbalances lower bmd and increase fracture risk over time. this study tests the hypothesis: bone health and sleep disorders are linked. a cross-sectional study by ochs‐balcom et al. (2020) found that women who slept less than six hours per night had reduced bmd and an increased risk of fractures. tang et al. (2021) linked sleep disruptions to lower bmd in adults, particularly older women. disrupted sleep may cause bone loss, especially in postmenopausal women at risk for osteoporosis due to hormonal changes. petrov et al. (2024) found that actigraphy-measured sleep parameters were substantially linked with bone turnover and bmd, confirming that inadequate sleep can harm younger bone health. chronic sleeplessness causes hormonal disruption and inflammation that accelerates bone density loss. sleep deprivation increases il-6, a pro-inflammatory cytokine that activates osteoclasts and accelerates bone loss (fang et al., 2023). this inflammation may worsen in insomniacs, increasing osteoporosis risk. thus, modifying sleep habits, especially in older persons, can minimise bone loss and osteoporosis risk. pufas and bone health essential nutrients including omega-3 and omega-6 polyunsaturated fatty acids regulate inflammation, lipid metabolism, and cellular signalling (chen et al., 2024). omega-3s, notably epa and dha, decrease inflammation and bone loss by affecting osteoporosis-related inflammatory markers (alva, pinto, & gowda, 2024). omega-6 fatty acids are important, but excessive ingestion might cause inflammatory reactions that aggravate bone loss, especially when their ratio exceeds omega-3s (das, 2000). recent research has shown that increasing omega3 pufa intake improves bmd and reduces osteoporosis risk. a meta-analysis by gao et al. (2023) found that omega-3 pufa supplementation in adults improved bone metabolism and bmd, lowering bone resorption and promoting bone formation. fang et al. (2023) used 2011–2018 nhanes data to assess dietary fatty acid intake and bmd in 25–59-yearolds. omega-3 fatty acid-rich diets increased bmd compared to omega-6 fatty acid diets. this study emphasizes the importance of maintaining a balanced omega-3 to omega-6 ratio for optimal bone health and osteoporosis prevention. feehan et al. (2023) conducted cross-sectional research to explore how estrogen deficiency impacts bone loss in postmenopausal women, revealing a positive correlation between omega-3 pufa levels and bmd, while inflammatory markers showed an inverse relationship with pufa levels. studies suggest that omega-3 pufas may help improve bone health in postmenopausal women and decrease the risk of osteoporosis. bone health is regulated by hormones such as parathyroid hormone (pth) and insulin-like growth factor 1 (igf-1), with research by chen et al. (2024) agbioforum, 26(2), 2024 | 143 shan & chandran — the role of polyunsaturated fatty acids and moringa oleifera leaf in primary osteoporosis induced by insomnia indicating that these hormones may influence pufa levels and bone metabolism. igf-1, in particular, promotes new bone formation and mineralization. a recent study by wang, fang, & xie (2024) found that omega-3 fatty acids could increase bmd by stimulating igf-1 signalling pathways, further supporting the role of omega-3s in bone health. interaction between insomnia, pufas, and bone health research has explored the effects of sleep deprivation and pufas on bone health, but it remains unclear whether these factors contribute to osteoporosis independently or interactively. sleep deprivation has been associated with a reduction in growth hormone levels, an increase in cortisol (the stress hormone), and heightened inflammation. these changes can disrupt bone metabolism by enhancing osteoclast activity and reducing bmd, as noted by swanson (2021). on the other hand, pufas, particularly omega-3 fatty acids, have been shown to possess anti-inflammatory properties that support bone health (chen et al., 2024). by reducing osteoclast activity and stimulating osteoblast function— through their inverse relationship—omega-3 fatty acids promote bone formation. with this understanding in mind, it becomes important to investigate whether pufas can prevent bone loss in individuals suffering from chronic insomnia. environmental challenges and the role of plants environmental pollution adversely affects various aspects of the natural world, including water, land, and air quality, and human health is just one of the many areas impacted. münzel et al. (2023) identify a range of pollutants, such as pesticides, heavy metals, plastic waste, and excessive fertilizers that degrade soil quality. these contaminants lead to decreased soil productivity and contaminate groundwater as beneficial bacteria are eliminated. water pollution, caused by human waste, agricultural runoff, and industrial discharge, severely impacts aquatic ecosystems and the biodiversity within them. rather et al. (2023) highlight that the rise in greenhouse gases and particulate matter emissions accelerates climate change and poses significant risks to respiratory and cardiovascular health. a sustainable, long-term solution to pollution and environmental degradation involves planting trees and vegetation. these plants help purify water and soil by filtering out harmful substances. khandare & govindwar (2015) suggest that green infrastructure, such as treeplanting initiatives, can contribute to better air quality, as plants produce oxygen and absorb harmful gases. numerous studies have also indicated that the plant moringa oleifera has the potential to improve both human health and the environment by reducing pollution levels. research gap while there is ample evidence showing that insomnia and pufas independently affect bone density in individuals with primary osteoporosis, limited research has examined their combined impact. several studies have established insomnia as a significant risk factor for bone loss due to its effect on hormones, particularly raising cortisol levels and lowering growth hormone (gh) levels, both of which are critical for bone remodelling (ochs‐balcom et al., 2020; swanson, 2021). additionally, research has shown that omega-3 pufas promote bone health by stimulating osteoblast production, inhibiting osteoclast-induced bone resorption, and reducing inflammation (alva et al., 2024; chen et al., 2024). however, there is a lack of studies investigating the interaction between insomnia and pufa intake in relation to osteoporosis. while pufas are known to reduce inflammation and enhance bone quality, their potential to counteract the negative effects of chronic insomnia on bone health remains unclear (fang et al., 2023; feehan et al., 2023). furthermore, the precise molecular mechanisms through which pufas influence bone health in the context of sleep disorders like insomnia are not well understood. research by das (2024) and swanson (2022) aims to explore how omega-3 fatty acids may reverse bone loss associated with insomnia, potentially through their anti-inflammatory and cortisol-lowering effects. there is also a gap in populationspecific studies, particularly in regions such as china, where aging populations are facing rising rates of both sleep disorders and osteoporosis (wang et al., 2021). most of the available studies have been conducted on western populations, highlighting the need for research focused on how lifestyle factors such as sleep quality and diet influence bone health in asian populations, where sleep patterns and dietary habits may differ significantly (yan et al., 2024; zhang & wu, 2024). although some studies have shown a relationship between sleep quality and bmd, there is a lack of longitudinal research to examine the long-term effects of insomnia, pufa intake, and bone health over time (liang et al., 2023). most current studies are cross-sectional, limiting the ability to determine the causal relationship between sleep disturbances, dietary factors, and the progression of osteoporosis (tao et al., 2022). despite the established effects of insomnia and pufa intake on bone density, research exploring their combined impact on osteoporosis is still lacking. sleep deprivation is known to disrupt hormonal balance, increasing the risk of bone loss, as chronic insomnia is linked to low growth hormone (gh) levels and elevated cortisol levels, which inhibit bone remodelling and accelerate bone resorption (ochs‐balcom et al., 2020; swanson, 2021). meanwhile, omega-3 pufas have been shown to reduce inflammation, activate osteoblasts, and protect against osteoclast-induced bone resorption, all of which benefit bone health (alva et al., 2024; chen et al., 2024). however, there is currently no data on how pufa supplementation may interact with insomnia to prevent bone loss. the moringa oleifera plant, known for its rich bioactive compounds and high concentration of pufas, may offer a promising solution for mitigating insomniarelated anxiety and bone loss. the omega-3 fatty acids found in moringa oleifera seeds have anti-inflammatory, cortisol-lowering, and bmd boosting effects. additionally, the combination of flavonoids and phenolic acids in moringa oleifera may provide the dual benefits of reducing oxidative stress and increasing bone density. despite these promising effects, the molecular pathways through which moringa oleifera influences bone health in relation to insomnia are still largely unknown. agbioforum, 26(2), 2024 | 144 shan & chandran — the role of polyunsaturated fatty acids and moringa oleifera leaf in primary osteoporosis induced by insomnia theoretical/empirical justification for the variables sabri et al. (2023) note that bmd decreases with age, making the elderly more susceptible to fractures and other bone fragilities. osteoporosis is more likely in postmenopausal women due to a significant drop in oestrogen levels (vilaca et al., 2022). sleep difficulties, especially insomnia, are becoming more widespread in the elderly, which may worsen hormone imbalances and circadian rhythms, which hasten bone loss (swanson, 2021). in osteoporosis research, women, especially postmenopausal women, are more likely to develop the condition due to a rapid reduction in oestrogen, which maintains bone density (vilaca et al., 2022). although less common, osteoporosis in males is still a concern as they age and testosterone levels drop, affecting bone health (diab & watts, 2021). targeted interventions for men and women require gender understanding (wang et al., 2021). due to hormonal modulation, insomnia increases osteoporosis risk. insomnia increases cortisol and decreases growth hormone, which cause bone resorption (swanson, 2022). research on insomnia is crucial for understanding the link between sleep quality and bone health, as sleep disorders impair bone remodelling (ochs‐ balcom et al., 2020). bmd and t-score are essential osteoporosis diagnosis criteria. t-scores below -2.5 suggest osteoporosis (sabri et al., 2023). osteoporosis research and disease prediction depend on regular bmd testing to evaluate lifestyle and dietary changes (wang et al., 2022). pufas, especially omega-3s, reduce inflammation, promote bone growth, and inhibit osteoclast activity to prevent bone resorption (chen et al., 2024; tao et al., 2022). dong et al. (2014) found that greater pufa levels inhibit bone turnover and boost bmd. preventing osteoporosis may require studying the effects of pufarich diets on insomnia-induced bone loss. smoking is a major risk factor for osteoporosis, affecting bone mass density, fracture risk, calcium absorption, and bone resorption (fang et al., 2023). smoking worsens the effects of insomnia on bone loss by disrupting sleep quality and increasing inflammation (wang et al., 2022). liu et al. (2016) found that alcohol consumption alters calcium homeostasis and reduces bone production, further increasing osteoporosis risk, which underscores the negative impact insomnia has on bone density (swanson, 2022). investigating lifestyle factors like alcohol consumption is essential for understanding their influence on bone health. regular physical exercise, particularly weight-bearing activities, helps increase bone density and development, providing protection against osteoporosis (feehan et al., 2023). consistent physical activity improves sleep quality, which may mitigate the adverse effects of insomnia on bone density (wang et al., 2022). comorbid conditions like diabetes, cardiovascular disease, and hypertension increase osteoporosis risk by affecting bone remodelling and inflammation (chen et al., 2024). these conditions also exacerbate insomnia, contributing to a cycle of deteriorating bone health. understanding the role of comorbidities is crucial in studying the relationship between insomnia, pufa intake, and osteoporosis (feehan et al., 2023). research has shown that both underweight and obesity significantly impact bone mass, with body mass index (bmi) serving as a critical indicator of bone health (wang et al., 2022). underweight individuals tend to have lower bmd, while obesity—especially central obesity—causes inflammation that leads to bone resorption (fang et al., 2023). both low and high bmis have been linked to insomnia, suggesting that bmi influences sleep patterns and, consequently, bone health (swanson, 2022). sleep duration has a notable impact on bone mass. reduced bmd and elevated bone turnover markers (btm) are associated with shorter sleep duration, which increases the risk of osteoporosis (ochs‐balcom et al., 2020). analysing sleep duration can help researchers understand how sleep deprivation influences pufa intake and its potential in reducing bone loss. osteoporosis prevalence differs between urban and rural populations, with factors such as access to healthcare, physical activity, and diet playing a role. urban residents often experience higher stress levels, poor sleep, and lack of natural light, contributing to increased osteoporosis risk (wang et al., 2021). zhang & wu (2024) propose that examining environmental factors in rural and urban areas can provide insights into osteoporosis development. this study focuses on the intersection of osteoporosis, insomnia, and polyunsaturated fatty acid (pufa) intake, especially in aging populations. moringa oleifera, a plant rich in bioactive compounds and pufas, offers a potential solution for improving bone health and addressing insomnia-related anxiety. with its high nutritional value, moringa oleifera may help mitigate bone loss in rural populations in china and other aging regions. the research also explores the environmental and agricultural impacts of promoting moringa oleifera as a sustainable crop in public health campaigns aimed at reducing osteoporosis and enhancing bone health. data and methodology study design this cross-sectional observational study aimed to investigate the potential relationship between pufas and the development of primary sleep-related osteoporosis in an elderly chinese population. key parameters, including sleep quality, bone density, and fatty acid intake, were assessed through self-administered questionnaires. the goal was to explore the correlation between pufa consumption and the onset of primary osteoporosis within the study group. the study also focused on moringa oleifera due to its rich nutritional profile, which includes antioxidants, calcium, and anti-inflammatory compounds. moringa's properties, particularly its ability to reduce inflammation and combat oxidative stress, are believed to be beneficial for older individuals in managing sleep issues, oxidative stress, and osteoporosis. given its antiinflammatory effects, moringa may play a significant role in mitigating these health concerns. by examining the combined benefits of moringa and pufas, this research aims to provide valuable insights into dietary recommendations that could promote better health agbioforum, 26(2), 2024 | 145 shan & chandran — the role of polyunsaturated fatty acids and moringa oleifera leaf in primary osteoporosis induced by insomnia outcomes for the elderly, specifically in the context of sleep-related osteoporosis. study population and sampling the study involved 400 participants aged 60 years and older from both urban and rural areas in china. to ensure proper representation of all age groups, genders, and regions, the sample was carefully stratified. the inclusion criteria for the study were as follows: • participants must be 60 years or older. • must have consumed moringa oleifera leaves. • must provide information on the frequency of moringa oleifera leaf consumption. • must specify the form of moringa oleifera consumption (fresh leaves, powdered supplements, or incorporated into meals). • must track the duration of moringa oleifera usage, with a focus on consistent consumption over several months or years. • must have no history of secondary osteoporosis or other bone disorders not related to lifestyle factors. • willingness to participate and provide informed consent. exclusion criteria included individuals with pre-existing conditions such as rheumatoid arthritis, chronic corticosteroid use, or severe cognitive impairments, as these could potentially interfere with the study's outcomes. data collection tools the purpose of this cross-sectional observational research was to examine the relationship between moringa oleifera usage and the occurrence of primary sleep-related osteoporosis in a group of elderly chinese individuals. the study was overseen by the chinese government and aimed to explore several variables, including: variables dependent variable: bmd was assessed using a t score to ascertain whether respondents exhibited osteoporosis at a t score of less than -2.5. independent variables insomnia: yes/no variable categorized or responded on the questionnaire for sleep quality. pufa intake: categorized and measured into low, moderate, and high. moringa consumption: categorized as low, moderate, and high, based on frequency of moringa intake. control variables: several potential confounders were included in the analysis: age: coded as a continuous variable. gender: coded as a binary variable (male/female). bmi (body mass index): measured and included as a continuous variable. smoking: coded as a binary variable (yes/no). alcohol consumption: coded as a binary variable (yes/no). physical activity: coded as a categorical variable (low, moderate, high). comorbidities: coded as a binary variable (yes/no) for conditions such as diabetes, hypertension, and cardiovascular disease. living area: coded as a binary variable (urban/rural). statistical analysis the collected data were analysed using stata 22.0. the analysis involved several stages: descriptive statistics: mean, standard deviation, and frequency distributions were calculated for all variables to summarize the characteristics of the sample. these statistical measures helped in providing a clear overview of the data, allowing for a better understanding of the sample's demographics and key health factors. multivariate logistic regression logistic regression was employed to model the relationship between insomnia (independent variable) and the likelihood of osteoporosis (dependent variable), while adjusting for age, gender, bmi, physical activity, comorbidities, and pufa intake. the model also included an interaction term between pufa intake and insomnia to evaluate whether higher pufa intake could potentially mitigate the adverse effects of insomnia on bone health. pathophysiological mechanism exploration the potential mediating role of sleep disturbances in bone loss was investigated using regression models. these models aimed to examine how insomnia might influence inflammatory markers associated with bone resorption, such as cortisol levels and pro-inflammatory cytokines. the relationship between insomnia and these markers was discussed in the context of existing literature, highlighting how disruptions in sleep can contribute to increased bone resorption and, consequently, bone loss. ethical considerations ethical approval for this study was obtained from the institutional review board (irb). all participants provided informed consent before participating in the survey. the data collection process ensured the anonymity and confidentiality of respondents, and participants were informed of their right to withdraw from the study at any point without any consequences. results descriptive statistics table 1 displays the range of characteristics (categorical variables) present in the sample of chinese seniors. the consumption patterns of moringa oleifera leaves were highly consistent across the population, with 32.5% of respondents classified as high consumers, 33.3% as low consumers, and 34.3% as intermediate users. this distribution underscores the necessity of conducting research to investigate the potential effects of varying dosages of moringa oleifera leaf consumption on the risk of osteoporosis and other variables associated with the disease. in the study, which examined the relationship between nutrition and lifestyle and the risk of osteoporosis, 53% of the participants were female and 47% male, ensuring that the study was representative of both sexes. osteoporosis, a condition that impacts a substantial fraction of the population (52%), may be significantly influenced by agbioforum, 26(2), 2024 | 146 shan & chandran — the role of polyunsaturated fatty acids and moringa oleifera leaf in primary osteoporosis induced by insomnia dietary and behavioural factors, including the ingestion of moringa oleifera leaves and pufas. an elevated risk of developing health issues, such as osteoporosis, has been associated with both the consumption of alcohol (51.5%) and the usage of tobacco (51.3%). the health of bones may be influenced by the interactions between the aforementioned activities and dietary behaviours, including the ingestion of pufas and moringa oleifera fruits and foliage. physical activity levels exhibit significant variation, with low levels comprising 35.3%, moderate levels comprising 30.8%, and high levels comprising 34%. to develop effective solutions for osteoporosis prevention, it is essential to have a comprehensive understanding of the relationship between physical activity and dietary choices, including the consumption of moringa oleifera, as physical exercise is beneficial for bone health. it may be more challenging to draw conclusions about the relationship between osteoporosis and specific dietary and lifestyle characteristics due to the fact that nearly half of the sample (48.5%) had comorbid conditions. in addition to the physiological processes that are affected by the ingestion of moringa oleifera leaf and other nutrients, comorbidities may also entail modifications. even though 52.8% of the population lives in cities, 47.3% still resides in rural areas. consistent with a balanced state, environmental and behavioural variables impact both dietary characteristics and the risk of osteoporosis. various geographical characteristics impact the relative advantages and risks of pufa and moringa oleifera leaf ingestion in this context. osteoporosis affects a large number of people, and one research indicated a link between sleeplessness (in 52.5% of the sample) and the disease. more studies are needed to confirm the association between sleeping disorders, moringa oleifera leaf use, and the risk of osteoporosis. poor sleep quality may impact both food choices and bone density. low (35%), moderate (34.3%), and high (30.8%) pufa consumption was used to categorize the population. this distribution can be used to examine how eating moringa oleifera leaves and pufas correlates with other risk factors for osteoporosis, such as inadequate sleep and physical inactivity. table 1: descriptive statistics. variable categories frequency percent moringa oleifera leaf consumption low 133 33.3 moderate 137 34.3 high 130 32.5 gender male 188 47 female 212 53 having osteoporosis no 192 48 yes 208 52 smoking habit no 195 48.8 yes 205 51.3 alcohol consumption no 194 48.5 yes 206 51.5 physical activity level low 141 35.3 moderate 123 30.8 high 136 34 comorbidities (yes/no) no 206 51.5 yes 194 48.5 living area rural 189 47.3 urban 211 52.8 having insomnia no 190 47.5 yes 210 52.5 pufa intake level low 140 35 moderate 137 34.3 high 123 30.8 figure 1: descriptive statistics. 2 1 2 3 8 9 4 1 4 1 8 8 3 9 7 9 7 7 1 8 9 2 1 1 1 0 2 3 5 3 9 7 .3 1 0 3 .6 4 7 9 9 .4 2 4 4 .3 4 7 .3 5 2 .8 2 5 5 .8 f e ma l e h i g h l o w ma l emo d e r a t e n o r u r a l u r b a n y e s sum of frequency by categories agbioforum, 26(2): 136-146. ©2024 agbioforum shan & chandran — the role of polyunsaturated fatty acids and moringa oleifera leaf in primary osteoporosis induced by insomnia multivariate analysis: pufa, insomnia, and osteoporosis primary osteoporosis and agitation are strongly correlated, according to the research. the risk ratio for primary osteoporosis was 1.28 in individuals who reported difficulty sleeping compared to those who reported no such problem. however, this finding did not reach the significance threshold (p>0.05). primary osteoporosis was shown to be strongly correlated (p < 0.05) with increased consumption of pufa, according to the study. the odds ratio for primary osteoporosis was 2.797, indicating that individuals who ingested a substantial quantity of polyunsaturated fatty acids were nearly 2.8 times more likely to develop the disease than those who consumed very little. the occurrence of primary osteoporosis in individuals with insomnia was reduced by a statistically significant interaction between high pufa intake and insomnia (odds ratio = 0.406; p < 0.05). according to preliminary research, the moringa oleifera leaf, which is nutrient-dense, may facilitate the consumption of a greater quantity of pufas. consequently, there is a possibility that individuals may experience fewer symptoms of insomnia and be less likely to develop primary osteoporosis. this suggests a moderating effect, where pufa potentially mitigates the negative impact of insomnia on osteoporosis risk (see table 2). table 2: multivariate analysis. variables in the equation b s.e. wald df pvalue odds ratios 95% c.i. for odds ratios interaction: insomnia * high intake of moringa oleifera leaf lower upper 0.721 0.428 2.846 1 0.092 0.486 0.207 1.141 having insomnia (rc: no insomnia) 0.248 0.245 1.021 1 0.312 1.281 0.793 2.07 high intake of polyunsaturated fatty acid (pufa) (rc: low intake) 1.028 0.342 9.02 1 0.003 2.797 1.429 5.472 having insomnia * high intake of pufa 0.902 0.457 3.902 1 0.048 0.406 0.166 0.993 high moringa oleifera leaf intake (rc: low intake) 0.815 0.335 5.916 1 0.015 2.259 1.17 4.361 age 0.017 0.012 2.098 1 0.147 0.983 0.961 1.006 female gender (rc: male) 0.009 0.209 0.002 1 0.966 0.991 0.659 1.492 smoking (rc: not smoking) 0.125 0.208 0.36 1 0.548 1.133 0.754 1.704 consuming alcohol (rc: not consuming) 0.081 0.207 0.153 1 0.696 0.922 0.614 1.384 physical activity level (rc: low) 1.658 2 0.436 moderate 0.321 0.257 1.555 1 0.212 1.378 0.833 2.281 high 0.223 0.251 0.789 1 0.374 1.249 0.764 2.042 comorbidities (rc: no) 0.104 0.207 0.254 1 0.614 1.11 0.74 1.666 bmi 0.018 0.021 0.723 1 0.395 0.983 0.943 1.023 living in an urban area (rc: rural) 0.359 0.207 2.998 1 0.083 1.432 0.954 2.151 sleep duration (hours) 0.099 0.073 1.835 1 0.176 1.104 0.957 1.275 constant 0.551 1.149 0.229 1 0.632 1.734 figure 2: multivariate analysis. 0 0.5 1 1.5 2 2.5 3 sum of odds ratios by 95% c.i. for odds ratios agbioforum, 26(2), 2024 | 148 shan & chandran — the role of polyunsaturated fatty acids and moringa oleifera leaf in primary osteoporosis induced by insomnia age did not have a statistically significant association with primary osteoporosis (odds ratio = 0.983; p > 0.05), indicating a minimal effect of age on reducing the likelihood of primary osteoporosis, but this was not significant. there was no significant gender difference in the likelihood of developing primary osteoporosis. smoking (odds ratio = 1.133, p = 0.548) and consuming alcohol (odds ratio = 0.922, p = 0.696) did not have statistically significant associations with primary osteoporosis. both moderate and high physical activity levels did not show statistically significant associations with primary osteoporosis compared to low activity levels. comorbidities were not significantly associated with primary osteoporosis. bmi did not significantly affect the likelihood of developing primary osteoporosis. living in urban areas (compared to rural areas) indicated a marginally significant association (p = 0.083) with an increased risk of primary osteoporosis, with an odds ratio of 1.432. sleep duration was not significantly associated with primary osteoporosis. the consumption of moringa oleifera leaves is associated with a statistically significant reduction in the risk of osteoporosis (p < 0.05). the odds ratio of individuals who consume moringa oleifera leaf is nearly two-to-one (2.259), suggesting that their likelihood of reducing their risk of osteoporosis is significantly increased. the protective tendency (p = 0.092) observed in the interaction between insomnia and moringa oleifera leaf ingestion implies that the leaf may have a moderating effect on the incidence of osteoporosis in individuals who suffer from insomnia. the results, which demonstrate the efficacy of moringa oleifera leaves and pufa in the treatment of primary osteoporosis brought on by insomnia, have significant implications for agriculture and nutrition. discussion the healthiest and most densely packed bones could be yours when you commit to a diet full of nutrients, particularly focusing on the complex relationship between pufas and insomnia. omega-3 fatty acids play a role in maintaining bone density, but excess omega-6 polyunsaturated fat might have negative consequences. high consumption of omega-6 fatty acids has been linked to an increased risk of developing primary osteoporosis, as it may lead to inflammation that affects calcium absorption and vitamin d metabolism, both critical for bone health (calder, 2006; das, 2000; simopoulos, 2002). this inflammation may also lead to increased osteoclast activity, further affecting bone density and resorption (alva et al., 2024; tao et al., 2022). studies have shown that excessive omega-6 fatty acids, particularly when unbalanced by omega-3s, may exacerbate the inflammatory processes that contribute to osteoporosis. according to das (2000), a higher omega-6 to omega-3 ratio has been associated with an increased risk of osteoporosis and reduced bone mass density. this highlights the importance of controlling dietary fat intake and maintaining a balanced intake of omega-3 and omega-6 fatty acids. an imbalance in these fatty acids can also reduce the body’s ability to absorb calcium, a crucial element for healthy bone growth (liang et al., 2023; wang et al., 2022). research has shown that higher levels of omega-6 are associated with greater bone resorption and lower bone mineral density, suggesting that excessive omega-6 fatty acid consumption may directly impact bone health. additionally, low levels of polyunsaturated fatty acids can contribute to fatigue, a known correlate of insomnia and lower bone mineral density (ochs‐balcom et al., 2020; swanson, 2022). anxiety and fatigue, both potential side effects of high omega-6 pufa intake, may further exacerbate sleep disturbances (chen et al., 2024). our findings contradict those of petrov et al. (2024), who found that individuals with insomnia showed lower rates of bone turnover. however, this research suggests that the combined effects of insufficient sleep and high omega-6 pufa intake may contribute to bone damage. omega-3 fatty acids, found in fish oil, have been shown to significantly promote bone health by reducing inflammation and increasing calcium absorption, as noted by chen et al. (2024). while a diet rich in omega-6 fatty acids may increase the likelihood of developing osteoporosis, a diet high in omega-3 fatty acids may reduce its severity. studies on bone metabolism have shown improved bone health in individuals taking omega-3 pufa supplements (gao et al., 2023). however, excessive omega-6 consumption may counteract these benefits (yan et al., 2024). a substantial body of evidence suggests that those with diets high in omega-6 fatty acids face a higher risk of primary osteoporosis, likely due to the inflammatory effects of omega-6 that disrupt calcium homeostasis and promote bone resorption. these changes might also contribute to sleep disorders such as insomnia, further complicating the condition. in conclusion, both omega-3 and omega-6 fatty acids play essential roles in bone health. consuming them in appropriate quantities may help prevent osteoporosis and support bone strength. however, the benefits of omega-3s can be compromised by an excessive intake of omega-6 fatty acids, suggesting the importance of maintaining a balanced diet to support both bone health and overall well-being. conclusion and policy recommendations insufficient sleep, as shown in this study, contributes to the body's production of pufas, which may increase the likelihood of developing primary osteoporosis. while omega-3 fatty acids have been shown to mitigate the negative effects of sleep deprivation on bone density, the overall association between pufa consumption and osteoporosis risk remains a concern. research has consistently demonstrated that both short-term and longterm insomnia can elevate the risk of osteoporosis. increasing omega-3 fatty acid intake may help counteract this effect due to its anti-inflammatory properties and role in calcium metabolism, which are essential for maintaining bone density. a study conducted in malaysia found no significant associations between osteoporosis risk factors—such as exercise, smoking, or alcohol consumption—when controlling for demographic and fixed factors. this suggests that dietary interventions, particularly increasing omega-3 pufa intake, may be a more effective approach to improving bone health and agbioforum, 26(2), 2024 | 149 shan & chandran — the role of polyunsaturated fatty acids and moringa oleifera leaf in primary osteoporosis induced by insomnia reducing sleep disturbances in the elderly. according to the findings of this study, individuals who regularly consume high amounts of omega-3 fatty acids are significantly less likely to experience sleep-related bone loss. as a result of these findings, specific recommendations can be made to support bone health. public health organizations and government agencies should promote the benefits of an omega-3-rich diet, particularly for aging populations who are at a higher risk of developing osteoporosis. raising awareness about the protective effects of omega-3 fatty acids against pufa-induced sleep disruptions may also contribute to better overall health outcomes. ensuring that both urban and rural populations adhere to recommended dietary guidelines could be facilitated through collaboration between healthcare professionals, including doctors and nutritionists. overconsumption of omega-6 fatty acids, which have inflammatory properties, may further increase the risk of osteoporosis. on the other hand, omega-3 pufas have shown potential in alleviating insomnia due to their therapeutic benefits. maintaining healthy bones requires a balanced diet that prioritizes omega-3 intake while keeping omega-6 levels in check. the primary goal should be to encourage a well-rounded dietary approach that supports bone health through optimal polyunsaturated fatty acid consumption. references abd el-hack, m. e., alagawany, m., elrys, a. s., desoky, e.-s. m., tolba, h. m., elnahal, a. s., et al. 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https://doi.org/10.3389/fnut.2024.1377910 https://doi.org/10.3390/nu16091334 https://doi.org/10.3390/nu16091334 agbioforum, 26(2): 108-121. ©2024 agbioforum ghaleb & dekhonov — environmental protection and consciousness influence sustainable consumption: mediated by perceived… environmental protection and consciousness influence sustainable consumption: mediated by perceived control and moderated by responsibility mohanad mohammed sufyan ghaleb* department of management, college of business, king faisal university, al-ahsa 31982, saudi arabia. email: mghaleb@kfu.edu.sa burkhon dekhonov tourism department, tashkent state university of economics, uzbekistan. email: b.dehqonov@tsue.uz this study explores the relationships among environmental protection, environmental consciousness, perceived behavioral control (pbc), and sustainable consumption behavior within production departments. it examines the mediating role of pbc and the moderating role of social responsibility, aiming to provide a comprehensive understanding of the drivers of sustainable practices in industrial contexts. a quantitative research design was adopted, targeting 233 supervisors and managers from production departments across various industries. data were collected through structured surveys using standardized scales adapted from prior research. partial least squares structural equation modeling (pls-sem) was conducted using adanco to assess reliability, validity, and structural relationships among the constructs. the results confirmed that environmental protection and consciousness significantly influence sustainable consumption behavior. pbc mediates these relationships, highlighting its central role in translating attitudes into actionable behavior. additionally, social responsibility moderates the effect of pbc on sustainable consumption, amplifying its impact. the findings underscore the importance of individual and contextual factors in shaping sustainable practices. this study extends the theory of planned behavior by integrating social responsibility as a moderator and emphasizing pbc as a mediator. it provides practical insights for managers and policymakers to design interventions promoting sustainability in production, contributing to the broader discourse on environmental responsibility. keywords: environmental consciousness, behavioral control, environmental protection, sustainability, csr introduction sustainable consumption has recently become a matter of much interest because of increasing environmental concerns and the urgent need to mitigate ecological degradation. as the world becomes increasingly aware of the adverse effects of unsustainable consumption patterns, the emphasis has shifted toward behaviors that are balanced between economic development and environmental sustainability (h. ali et al., 2023). sustainable consumption is consumption of goods and services that allow people to enjoy basic needs, reducing the level of negative environmental impact, by preserving resources for future generations, (m. ali et al., 2023). this has close relations to the united nations' sustainable development goals, focusing on responsible patterns of consumption and production, that is, achieving goal 12, (aslan, 2023). environmental protection and awareness have been thrust forward as leaders of consumption sustainability (dolnicar, 2022). environmental protection refers to the protection of natural ecosystems from damages made by humans, whereas environmental consciousness deals with the awareness of a person to ecological matters (gansser & reich, 2023). several approaches have been employed to push for sustainable behavior in governing bodies, businesses, and the general public: recycling schemes, ecolabeling, and raising public awareness (kapoor et al., 2022). despite these efforts, translation of environmental awareness into behavior remains inconsistent, and there is a need for deeper exploration into factors such as perceived behavioral control and social responsibility, which were identified by (woo et al., 2024). it is essential to understand these dynamics in order to develop effective interventions to encourage sustainable consumption across diverse contexts. a huge body of literature has investigated the antecedents and consequences of sustainable consumption behavior (khan, 2023; zeng et al., 2023). the current studies consistently underscore the use of environmental attitudes and values in shaping consumption choices (gansser & reich, 2023). for example, it is suggested that proenvironmental values are more likely to influence the adoption of eco-friendly practices, such as non-waste and green product consumption, among individuals with strong pro-environmental values (kapoor et al., 2022). besides, empirical evidence stresses the role of environmental awareness and its positive association with sustainable consumption intentions (lange & nakamura, 2023). across cultures and socio-economic contexts, it has been established that environmental awareness cuts across geographic boundaries with consistent findings in linking it to behavioral changes (lavuri et al., 2023). another critical determinant of sustainable consumption is perceived behavioural control (pbc), as an indicator that individuals are actually confident about being able to make a specific action (leong et al., 2022). studies revealed that the larger pbc, the higher intentions and indeed sustainable behaviors, energy saving, or recycling (li et al., 2023; lim & weissmann, 2021). this paper also mailto:mghaleb@kfu.edu.sa mailto:b.dehqonov@tsue.uz agbioforum, 26(2), 2024 | 109 ghaleb & dekhonov — environmental protection and consciousness influence sustainable consumption: mediated by perceived… reveals how social responsibility had become a large moderator in that domain. scholars argue that those with a sense of social responsibility are more likely to align consumption with the greater ecological and societal good (martos‐pedrero et al., 2022). even with these insights, though, the challenges remain in understanding the interplay between the factors and their effect on sustainable consumption, leading to comprehensive models that integrate individual, social, and structural dimensions. although previous studies have significantly added to the knowledge of sustainable consumption behavior (rozenkowska, 2023; trautwein et al., 2021), many gaps still exist in research (zeng et al., 2023). to begin with, most existing studies concentrate on direct relationships between environmental attitudes and sustainable consumption while omitting the mediating and moderating roles of factors such as pbc and social responsibility (alzghoul et al., 2023). for instance, extant literatures are still not very common concerning the understanding of how pbc fills the gap between environmental protection or consciousness and the actual act in real life (ghaffar & islam, 2023). the other aspect which has not been well explored concerning these relationships is social responsibility as a moderating variable, especially against the backdrop of different cultural and economic contexts (jebarajakirthy et al., 2024). second, much of the existing literature applies crosssectional designs, which are unable to reflect the dynamic and constantly changing nature of sustainable consumption behavior (khan, 2023; woo et al., 2024). longitudinal studies are sparse, in that there is little work that analyzes how attitudes, perceptions, and behaviors evolve with time (siddique et al., 2024). as such, knowledge about the influence of interventions and policies on sustainable consumption over a long period remains underdeveloped (lim & weissmann, 2021). most studies are constrained to specific issues of sustainable consumption, such as recycling or green purchasing (m. ali et al., 2023), failing to analyze more general behavioral patterns that cover over one dimension (kapoor et al., 2022). filling these gaps would be important in providing comprehensive frameworks which account for the complexities of sustainable consumption behavior. based on the theory of planned behavior (tpb) and the value-belief-norm theory (vbn), this study will further be able to provide a sound research framework for the factors deciding sustainable consumer behavior. according to ajzen (1991), the theory claims that determinants of behavior are attitudes, subjective norms, and perceived behavioral control as held by the focal actor. the theory of planned behavior is applied to understand how attitudes are constructed by environmental consciousness or protection within the domain of sustainable consumption and how pbc acts as a mediator of those factors toward behavior (lange & nakamura, 2023). vbn theory completes this framework as it points out that values and beliefs promote pro-environmental norms and actions (gansser & reich, 2023). together, these theories give a holistic view in looking at the individual, social, and structural interactions that determine sustainable consumption behavior. the main focus of this research is to look into the associations between environmental protection, environmental consciousness, perceived behavioral control, social responsibility, and sustainable consumption behavior. specifically, it tries to see the mediating role of pbc in the linkage between environmental protection and consciousness with sustainable behavior and how the moderating influence of social responsibility plays a part in these relations. this research aims to move forward the current understanding of sustainable consumption behavior by addressing gaps in existing research and integrating theoretical insights. recommendations will be actionable for policymakers, businesses, and individuals based on this research . literature review research about sustainable consumption gained a considerable stride as an emergent field with regards to pressing global issues nowadays-the concerns surrounding ecological degradation, dwindling resource capabilities (h. ali et al., 2023). according to available literature, this paper reiterates and sustains what people know for now that 'pro-environmental behaviors may primarily be initiated because of environmentally concerned behavior in numerous cultures' end (m. ali et al., 2023). studies have shown that individuals with higher environmental awareness are likely to engage in practices such as waste reduction, energy conservation, and the adoption of ecofriendly products (aslan, 2023; dolnicar, 2022). these are often reflected in behavioral intentions, which mediate between knowledge of the environment and actual consumption behavior. social norms, education, and effective marketing campaigns are commonly cited mechanisms to increase environmental consciousness, leading to greater-scale sustainable consumption (gansser & reich, 2023). simultaneously, the link between environmental protection and consumption patterns is becoming more prominent as researchers examine how individual motivations, societal influences, and systemic barriers interact (kapoor et al., 2022). psychological theories such as theory of planned behavior and value-belief-norm theory give insight into why attitudes toward the environment translate into sustainability behavior (leong et al., 2022). in empirical work, it has shown that the ability of an action to make a difference and a belief in efforts by institutions determines choices for sustainable consumption (lange & nakamura, 2023). structural factors such as affordability, accessibility, and sustainable alternatives determine the consumption patterns (lavuri et al., 2023). personal values and ethical considerations might be at the heart of lifestyle choices (li et al., 2023). however, usually, it is the outside forces that regulate how sustainability can enter these choices: through economic incentives and regulatory measures (lim & weissmann, 2021). overall, advancement in sustainable consumption practices internationally will be pivotal with promoting an agbioforum, 26(2), 2024 | 110 ghaleb & dekhonov — environmental protection and consciousness influence sustainable consumption: mediated by perceived… environment that aligns individual consciousness with supportive policies and infrastructure the aspect of environmental protection has been widely recognized to affect sustainable consumption behavior (martos‐pedrero et al., 2022). studies show that individuals who perceive environmental protection is essential usually behave in alignment with the dimensions of sustainable consumption, such as the reduction of waste, resource utilization, and environmentally friendly good purchases (patwary, 2022; pütz et al., 2022). for example, research exists that connects the level of perceived urgency of environmental problems and consumer's adoption of sustainability practices in their everyday life (ribeiro et al., 2023). cross-national studies have found empirical evidence that regions with a higher level of environmental protection awareness report a more significant adoption of sustainable consumption habits, which are influenced by governmental policies and societal norms (rozenkowska, 2023). in addition, longitudinal analyses have established a strong correlation between environmental attitudes and sustainable consumption, emphasizing the fact that as environmental concerns escalate, individuals are more likely to align their behaviors with ecological preservation goals (savari et al., 2023). this directly impacts sustainability through consumption through the fact that environmental protection triggers deliberate behavior modification by building on proenvironmental attitude development (silva et al., 2022). according to previous research studies, once a consumer determines that his actions do impact the environment, that individual is sure to engage in a more eco-friendly form of activity (tian et al., 2023; trautwein et al., 2021). this is further supplemented by empirical evidence that the presence of environmental information and educational campaigns makes the relationship between attitudes toward environmental protection and sustainable behaviors stronger (ur rahman et al., 2021). studies on policy interventions also reveal that regulatory frameworks based on environmental protection can significantly enhance sustainable consumption patterns by making individual and collective goals congruent (zeng et al., 2023). therefore, the hypothesis that environmental protection significantly influences the behavior regarding sustainable consumption well-supported by empirical findings placed much emphasis on the interplay of awareness, policies, and individual choices. h1: environmental protection significantly influences the sustainable consumption behavior. environmental consciousness, defined as the state of awareness and concern for the ecological well-being, has been widely studied as a predictor of sustainable consumption behavior (alzghoul et al., 2023). it has been found that ecologically conscious persons are more likely to take the environment into consideration when making consuming decisions, often preferring those products that have smaller ecological footprints (batool et al., 2023). empirical studies around other demographics indicate that environmental consciousness remains an enabler for the adoption behavior, such as recycling, conserving energy, and sustainable brands (fauzi et al., 2022; ghaffar & islam, 2023). surveys on both developed and developing countries showed a clear sign of positive linkage between the level of environmental consciousness with the decision making for sustainable buying (jebarajakirthy et al., 2024). furthermore, experimental studies have shown that the environment-conscious individual reacts favorably to ecolabeling and green marketing, further reinforcing its position in sustainable consumption (khan, 2023). the hypothesis is that environmental consciousness plays a major role in sustainable consumption behavior based on the premise that awareness and attitudes determine behavioral intentions (laheri et al., 2024). this idea has empirical evidence since it has been observed that people who internalize environmental values are likely to make informed consumption choices (siddique et al., 2024). additionally, interventions related to environmental awareness, including grassroots activities and learning activities, were also found to positively influence behavior for sustainability (woo et al., 2024). other researchers still consider that in order for these factors to promote behavioral change for sustainability (kapoor et al., 2022), it must be concomitant with environmental consciousness since people with the power to act on their environmental values tend to adopt sustainable behaviors. all these findings put together support the hypothesis and suggest that environmental consciousness is the key factor that fosters sustainable consumption. h2: environmental consciousness significantly influences the sustainable consumption behavior. social responsibility has been defined as that moral obligation toward contributing to societal and environmental well-being (silva et al., 2022). it has been considered a critical moderator in a number of behavioral frameworks (jebarajakirthy et al., 2024; siddique et al., 2024). according to empirical studies, socially responsible personalities are associated with increased sensitivity related to the contribution they make in affecting the environmental system, impacting their consumption practices (aslan, 2023; ur rahman et al., 2021). for instance, research conducted in organizational and consumer contexts reveals that a strong sense of social responsibility enhances the likelihood of proenvironmental behaviors, particularly when individuals feel that their actions have an impact (fauzi et al., 2022; lange & nakamura, 2023). moreover, studies on ethical consumption reveal that social responsibility reinforces the relationship between behavioral intentions and sustainable behavior, and thus, might play a moderating role in more general models of behavior (martos‐pedrero et al., 2022; ribeiro et al., 2023). empirical studies further support the moderating role of social responsibility in the relationship between perceived behavioral control and sustainable consumption behavior as they underscore the influence of this construct on decision-making processes (patwary, 2022). indeed, it has been established that those who have social responsibility will turn their perceived control over environmental outcomes into actions if they feel that they can do something to alter environmental outcomes (zeng et al., 2023). this hypothesis is further supported by evidence agbioforum, 26(2), 2024 | 111 ghaleb & dekhonov — environmental protection and consciousness influence sustainable consumption: mediated by perceived… that socially responsible individuals are more amenable to intervention as they are likely to adopt behaviors that promote personal control and authority in the community sphere (tian et al., 2023). incorporation of social responsibility in behavioral theories has been successful enough to enhance alignment of perceived control and sustainable consumption as shown below with its moderation potential. h3: social responsibility significantly moderates the relationship of perceived behavioral control and sustainable consumption behavior. pbc has been heavily studied as an important predictor of sustainable consumption behavior (ur rahman et al., 2021). pbc is a perception of the respondent's ability to perform a particular behavior, conditioned by available resources, opportunities, and self-efficacy (dolnicar, 2022). based on empirical findings, it seems that the stronger the pbc, the stronger the translation of environmental attitudes to sustainable behaviors (kapoor et al., 2022; li et al., 2023). for example, green product consumption research findings suggest that pbc acts as a mediator variable in the environment concerns and buying behavior relationship as a situation of more perceived efficacy promotes buying (lange & nakamura, 2023). finally, it has been observed that institutional support and green alternative availability also mediate a higher impact of environmental protection attitude on behavior where pbc is high (gansser & reich, 2023). it further shows the pivotal role pbc plays in bringing together environmental awareness and behavioral action (aslan, 2023). there is evidence empirically indicating the mediating role of pbc between environmental protection and sustainable consumption behavior (h. ali et al., 2023). thus, perceived capability would drive the behavior (martos‐ pedrero et al., 2022). however, if it were that the environment mattered but the ability or means or barriers prevented structural or psychological ones from arising, the behavior does not relate to attitude (ribeiro et al., 2023). however, evidence reveals that the impact of initiatives such as skill-building workshops, resource availability, and information campaigns on strengthening pbc greatly strengthens the relationship between environmental protection and sustainable consumption (trautwein et al., 2021). in addition, behavioral models research reveals that pbc serves as a translator that converts pro-environmental intentions into action through reduced perceived barriers (zeng et al., 2023). these findings validate the hypothesis that pbc plays a significant mediating role between environmental protection and sustainable consumption behavior, thereby reiterating its central position in behavioral frameworks. h4: perceived behavioral control significantly mediates the relationship of environmental protection and sustainable consumption behavior. environmental awareness has been pinpointed as the much-needed precursor for sustainable consumption behavior, and pbc is the key to making this awareness translate into action (martos‐pedrero et al., 2022). individuals who are environment-friendly but lack perceived control show a disconnection between their intended behaviors and actual behaviors (trautwein et al., 2021). for instance, recycling and energy conservation studies reported that although awareness of the environment predicts behavioral intention, pbc accounts for the realization of such intentions in action (jebarajakirthy et al., 2024; zeng et al., 2023). even empirical evidence indicates that interventions that target the pbc enhance the impact of environmental consciousness on behavior by increasing access to recycling facilities or by providing detailed instructions in carrying out eco-friendly actions (laheri et al., 2024). this positions pbc as a core intermediary between awareness of the environment and practice sustainability. several researches have discussed the interactive effects among these constructs with the view to ascertaining that pbc indeed mediates the relationship between environmental consciousness and sustainable consumption behavior (laheri et al., 2024; woo et al., 2024). the results are such that, when controlled, individuals highly conscious of the environment will still consume more sustainably (ghaffar & islam, 2023). for example, researches on the adoption of green products have realized that the consumer who is very sensitive and has a high level of pbc is likely to engage in an environmentally responsible purchase (patwary, 2022; rozenkowska, 2023). furthermore, the results of the experiments show that with targeted interventions, increasing pbc strongly relates consciousness with a sustainable action (ribeiro et al., 2023). these findings justify the hypothesis based on the assumption of the mediator pbc's function in leading people to pro-environmental consumption based on awareness. perceived behavioral control significantly mediates the relationship of environmental consciousness and sustainable consumption behavior. theory to explain research relationships and model the proposed research framework aligns closely with the value-belief-norm (vbn) theory and the theory of planned behavior (tpb). the vbn theory describes how values and beliefs, like environmental consciousness and protection, are used to generate pro-environmental norms and behaviors (jebarajakirthy et al., 2024). the tpb attempts to describe how these constructs influence intentions and actions by combining attitudes, subjective norms, and pbc (tian et al., 2023). in this study, it is assumed that environmental protection and consciousness influence attitudes, while pbc mediates the pathway toward sustainable consumption. social responsibility further regulates these relationships by strengthening the link between perceived control and behavior. the model (figure 1) would, therefore, integrate these two concepts toward a holistic interrogation of dynamic interactions between individual values, perceived capabilities, and sustainable consumption behaviors. agbioforum, 26(2): 108-121. ©2024 agbioforum ghaleb & dekhonov — environmental protection and consciousness influence sustainable consumption: mediated by perceived… figure 1: conceptual model methodology research design this study was conducted through the use of a quantitative research approach to understand how relationships between environmental protection, consciousness, perceived behavior control, social responsibility, and sustainable consumption behaviors are developed. the study had to utilize data from a cross-sectional survey focused on production departments' supervisors and managers since they are those persons directly involved in the making of decisions influencing organizations' sustainability practice. by adopting this methodology, the collected data would therefore relate to actual know-how concerning consumption sustainability within industries. population and sample the study sample consisted of the target population supervisor and managers from departments of production for different industries-whose activities, to a high extent, reflect the impact that departments have on environmental sustainability and consumption patterns at the organizational level. a sample size of 233 supervisors and managers constituted the sample pool for the given study. the sample is based on purposive sampling, where the respondents have relevant experience and knowledge of sustainability practices in production processes. such targeted sampling ensures that there are greater chances of getting accurate, meaningful data reflective of the research objectives. measurement instruments this study employed standardized scales (table 1) adopted from previous research to measure its constructs. the adopted scales were chosen by virtue of their reliability and validity established in earlier works. table 1: details of instruments variables of research items reference environmental protection 6 (he et al., 2017) environmental consciousness 3 (maichum et al., 2017) perceived behavioral control 3 (verma & chandra, 2018) social responsibility 3 (lee et al., 2015) sustainable consumption behavior 13 (junior, 2017) items were scaled using a five-point likert scale with anchors that read from "1 = strongly disagree" to "5 = strongly agree." such scaling ensured a degree of granularity and thus permitted powerful statistical analysis. data collection procedure a structured questionnaire was distributed via online and paper forms to gather data. questionnaires were dispatched to the respective supervisors and managers via emails, clearly specifying the objective of the study with step-bystep guidelines on filling up the form. the entire questionnaire was created in a manner such that the answer could be found easily, minimizing the chance for errors. collection took three months as per participants' convenience to yield a usable sample size of 233 questionnaires. data analysis the data were analyzed using adanco, a specialized software for partial least squares structural equation modeling (pls-sem). the reason for choosing adanco was its ability to deal with complex models, assess reflective and formative constructs, and provide comprehensively outlined reliability and validity measures. the procedure of analysis involved the following steps: 1. descriptive statistics: the first stage was an introductory exploration of the data to understand the agbioforum, 26(2), 2024 | 113 ghaleb & dekhonov — environmental protection and consciousness influence sustainable consumption: mediated by perceived… demographic characteristics of the sample and the distribution of responses. 2. test the measurement model with indicators for reliability and validity: dijkstra-henseler's rho (ρa), jöreskog's rho (ρc), cronbach's alpha, average variance extracted ave. 3. discriminant validity: assessed through the heterotrait-monotrait ratio of correlations, to ensure that constructs were distinct. 4. structural model evaluation: through the path coefficient, t-value, and p-value, a test of hypotheses regarding the structure is conducted. furthermore, determination coefficient (r²), predictability (q²predict), and model fitting indices like root mean square errors and mean absolute errors were obtained to assess whether the model in general fits as a reasonable predictor. with this approach in the analysis process, the finding is reliable and valid, showing robust empirical justification for the posited relationships. results table 2 depicts the reliability and validity statistics of study constructs, ensuring they are appropriate for structural equation modeling. reliability is measured using dijkstra-henseler's rho (ρa), jöreskog's rho (ρc), and cronbach's alpha (α). all the constructs display excellent reliability as the values for ρa, ρc, and α are above the threshold value set at 0.7, thus asserting item consistency. environmental protection proves ρa = 0.890, ρc = 0.888, and α = 0.889, which validates the soundness of the measurement scale. in the same way, environmental consciousness, perceived behavioral control, social responsibility, and also sustainable consumption behavior have reliability coefficients way above the norm, which enables the justification of the validity of their corresponding constructs. table 2: variables reliability and validity dijkstra-henseler's rho (ρa) jöreskog's rho (ρc) cronbach's alpha(α) average variance extracted (ave) environmental protection 0.890 0.888 0.889 0.543 environmental consciousness 0.812 0.874 0.901 0.563 perceived behavioral control 0.899 0.897 0.896 0.514 social responsibility 0.883 0.880 0.884 0.566 sustainable consumption behavior 0.848 0.846 0.847 0.509 all the ave values were above 0.5 minimum threshold for convergence validity. consciousness environmental value was at 0.563, followed by environmental protection value at 0.543, and perceived control value at 0.514. the value of ave for social responsibility was at 0.566, while the value of ave for sustainable consumption behavior is at 0.509. this, therefore, proves that the latent variables explain the indicator adequately. collectively, the results validate the reliability and the validity of the measurement model (figure 2) that ensures its usability for further analyses. figure 2: estimated model agbioforum, 26(2): 108-121. ©2024 agbioforum ghaleb & dekhonov — environmental protection and consciousness influence sustainable consumption: mediated by perceived… table 3 provides the fitness statistics of measurement items for each construct. the standardized factor loadings indicate how well each item represents its corresponding latent variable. for environmental protection, item loadings range from 0.558 (ep4) to 0.730 (ep5), demonstrating moderate to strong contributions. environmental consciousness exhibits loadings between 0.564 (ec1) and 0.634 (ec2), confirming the adequacy of these indicators. perceived behavioral control shows strong item loadings, with pbc1 at 0.726 and pbc3 at 0.708, reflecting the coherence of its scale. similarly, social responsibility items have loadings ranging from 0.636 (sr3) to 0.756 (sr2), highlighting their significance. sustainable consumption behavior encompasses a wide range of items, with factor loadings between 0.422 (scb6) and 0.740 (scb12). although scb6 has the lowest loading, it remains above the minimum acceptable level of 0.4, suggesting its retention within the model. these statistics confirm the overall fitness of measurement items and their contribution to their respective constructs. table 3: measurement items fitness statistics indicator environmental protection environmental consciousness perceived behavioral control social responsibility sustainable consumption behavior ep1 0.619 ep2 0.626 ep3 0.662 ep4 0.558 ep5 0.730 ep6 0.624 ec1 0.564 ec2 0.634 ec3 0.595 pbc1 0.726 pbc2 0.729 pbc3 0.708 sr1 0.684 sr2 0.756 sr3 0.636 scb1 0.569 scb2 0.551 scb3 0.614 scb4 0.534 scb5 0.556 scb6 0.422 scb7 0.591 scb8 0.517 scb9 0.602 scb10 0.673 scb11 0.668 scb12 0.740 scb13 0.697 table 4 assesses discriminant validity using the heterotrait-monotrait ratio (htmt). all htmt values fall below the threshold of 0.85, confirming that the constructs are distinct from one another. the htmt value between environmental protection and environmental consciousness is 0.688, indicating sufficient discriminant validity between these closely related constructs. perceived behavioral control exhibits htmt values of 0.635 with environmental protection and 0.808 with environmental consciousness, demonstrating that these constructs are conceptually unique. social responsibility shows lower correlations with other constructs, such as 0.470 with environmental protection and 0.486 with environmental consciousness, supporting its distinct role in the model. sustainable consumption behavior has the lowest htmt values, with a maximum correlation of 0.663 with social responsibility, further emphasizing the independence of the constructs. these results validate the discriminant validity of the measurement model, ensuring the constructs’ appropriateness for structural analysis. table 4: discriminant validity: heterotrait-monotrait ratio of correlations (htmt) construct 1 2 3 4 5 environmental protection environmental consciousness 0.688 perceived behavioral control 0.635 0.808 social responsibility 0.470 0.486 0.539 sustainable consumption behavior 0.324 0.421 0.506 0.663 table 5 evaluates the model’s goodness of fit, focusing on coefficients of determination (r²), adjusted r², q²predict, rmse, and mae. the r² for perceived behavioral control is 0.623, indicating that 62.3% of its variance is explained by the predictors. for sustainable consumption behavior, the r² is higher at 0.754, reflecting a strong explanatory power of the model. the adjusted r² values confirm the robustness of these relationships, with minimal reductions compared to the r² values. predictive relevance (q²predict) for perceived behavioral control is 0.202, agbioforum, 26(2), 2024 | 115 ghaleb & dekhonov — environmental protection and consciousness influence sustainable consumption: mediated by perceived… surpassing the threshold of zero and confirming the model's predictive validity. the root mean square error (rmse) and mean absolute error (mae) values for perceived behavioral control are 0.073 and 0.078, respectively, indicating a good fit. collectively, these statistics validate the model's ability to accurately predict the dependent variables and reflect its overall goodness of fit. table 5: model goodness of fit statistics construct coefficient of determination (r2) adjusted r2 q²predict rmse mae perceived behavioral control 0.623 0.667 0.202 0.073 0.078 sustainable consumption behavior 0.754 0.755 table 6 presents the path coefficients, standard errors, tvalues, and p-values for the hypothesized relationships. all hypotheses are supported with significant p-values (<0.001). environmental protection significantly influences sustainable consumption behavior, with a path coefficient of 0.282 and a t-value of 5.074. environmental consciousness has a stronger influence on sustainable consumption behavior, with a coefficient of 0.430 and a tvalue of 6.277. table 6: path analysis hypothesis coefficients standard errors t-values p-values environmental protection significantly influences the sustainable consumption behavior. 0.282 0.051 5.074 <0.001 environmental consciousness significantly influences the sustainable consumption behavior. 0.430 0.062 6.277 <0.001 social responsibility significantly moderates the relationship of perceived behavioral control and sustainable consumption behavior. 0.515 0.078 5.298 <0.001 perceived behavioral control significantly mediates the relationship of environmental protection and sustainable consumption behavior. 0.491 0.069 6.505 <0.001 perceived behavioral control significantly mediates the relationship of environmental consciousness and sustainable consumption behavior. 0.352 0.058 5.530 <0.001 the moderation effect of social responsibility in the relationship between perceived behavioral control and sustainable consumption behavior is substantial, with a coefficient of 0.515 and a t-value of 5.298, indicating a robust moderating role. the mediating role of perceived behavioral control in the relationships between environmental protection and sustainable consumption behavior (coefficient = 0.491, t = 6.505) and between environmental consciousness and sustainable consumption behavior (coefficient = 0.352, t = 5.530) is also confirmed. these findings underscore the strength and significance of the proposed relationships, validating the theoretical framework and research model (figure 3). figure 3: structural model for path analysis agbioforum, 26(2): 108-121. ©2024 agbioforum ghaleb & dekhonov — environmental protection and consciousness influence sustainable consumption: mediated by perceived… discussion findings from this study thus provide critical insight into the very complex relationships of environmental protection and awareness of environmental consciousness, pbc, social responsibility, and consumption behavior for sustainable consumption. therefore, this paper contributes to greater understanding of what drives and shapes sustainable consumption with increasing global ecological degradation and scarcity of resources. all of these hypotheses yielded acceptance, implying that personal attitudes, perceptions, and other contextual factors are generally influential in promoting responsible environments through appropriate behaviors. this study is comprehensive in nature by looking at direct and mediated relationships and the moderating effect of social responsibility, thus integrating psychological, social, and environmental dimensions of sustainable consumption behavior. the results support that environmental protection strongly impacts sustainable consumption behavior (h1). this is in agreement with previous research, which has highlighted the importance of environmental attitudes in determining pro-environmental actions (dolnicar, 2022). the results show that individuals who are concerned about the environment are more likely to participate in sustainable practices, such as waste reduction, eco-friendly purchases, and energy saving. these behaviors reflect an ecological responsibility spurred by the awareness of environmental issues and belief in the urgency of preserving the environment (leong et al., 2022). moreover, the acceptance of this theory allows for the added role of environmental education and policy actions to exert stronger commitments on individuals toward sustainability. by integrating environmental protection into consumption behavior, it is clear how attitudes regarding ecological well-being act as a trigger for powerful behavior change. the acceptance of h2 which posits that environmental consciousness highly influences sustainable consumption behavior. therefore, this indicates that awareness is leading to sustainable behaviors. environmental consciousness-be it that the person knows and cares about the environment-is very strong for sustainable consumption behaviors. the study supports the assumption that a person will be prompted to act in line with his values once they have become aware of environmental impacts (martos‐pedrero et al., 2022). the results further shed light upon cultural and social impacts that determine the environmental consciousness in the way that people mainly internalize the pro-environmental norms due to education, socialization, and media exposure. these results seem to indicate that by elevating the level of environmental consciousness through running such targeted campaigns as well as carrying out community engagement activities, a rise in the sustainable consumption practice can be seen. thus, an additional dimension has been added through the moderation effect of social responsibility in the perceived behavioral control relationship with sustainable consumption behavior: "the expression of actual control over sustainable actions tends to be stronger among those people who experience increased social responsibility levels, thereby also strengthening the connection between intention and behavior" (h3). this outcome is consistent with earlier studies that social responsibility positively affects ethical decision-making and pro-environmental behaviors (lange & nakamura, 2023). the moderator's effect by social responsibility emphasizes the importance of developing collective responsibility towards ecological conservation. more policies and interventions based on community involvement and ethical accountability may further enhance the pbc effect to sustainable consumption. the results point to pbc largely mediating the relationship between environmental protection and sustainable consumption behavior, h4. this result also validates the perceived control concept in facilitating the translation of environmental attitudes into actual action. also, proenvironmental types are likely to bring about sustainable consumption only when they feel they can modify a situation. pbc operates within the boundaries of structural as well as psychological obstacles to pro-environmental behavior, (ajzen, 1991). for example, having access to environment-friendly alternatives along with incentives and accessible information, it is probably going to raise people's belief in their own capability to be environmentally friendly. research studies have revealed the fact that intervention efforts targeting pbc development may serve as a bridge to link environmental attitudes with behavior (batool et al., 2023). acceptance of h5 establishes pbc as a mediator in the relationship between environmental consciousness and sustainable consumption behavior via the interaction between awareness, capability, and action. ecological considerations force an individual to calculate the environmental consequence of their choice, but what actually determines if such intentions translate into actions is a perception of control. this conclusion is in agreement with previous studies, which demonstrate that pbc plays a crucial role in enhancing the enabling factors of proenvironmental behaviors among conscious individuals (siddique et al., 2024). results for this study demonstrated how increasing pbc through education, resources available, and supportive infrastructure would increase the effect of environmental consciousness on the behavior. this outcome emphasizes that multi-dimensional approaches, in terms of building awareness and capacity building, should be utilized. the mediating position of pbc in both relationships determines the centrality of this construct in the theoretical framework of the given work. results from the study reveal that, although environmental protection and consciousness are motivational underpinnings for sustainable behavior, it is pbc as the mechanism for unfolding action. adding depth to models of sustainable consumption integrating psychological constructs, such as pbc, to understand behavior at a comprehensive level, these results develop models further (ghaffar & islam, 2023). it has been able to touch the attitudinal as well as agbioforum, 26(2), 2024 | 117 ghaleb & dekhonov — environmental protection and consciousness influence sustainable consumption: mediated by perceived… the structural aspects in this study, flowing actionable knowledge toward policyand practice-leaders striving for scale toward a sustainable end. the discussion of the findings shows how environmental attitudes, perceived control, and social responsibility interplay with each other to shape sustainable consumption behavior. the acceptance of all five hypotheses highlights the importance of integrating psychological and contextual factors in strategies to promote sustainability. this research not only validates the constructs developed into specific theoretical frameworks, such as theory of planned behavior but also extends them by pointing out the mediator role of pbc and the moderating influence of social responsibility. in this respect, the study addresses some critical gaps in the literature, thereby enhancing the understanding of the dynamics of sustainable consumption and providing practical implications to the enhancement of responsible environmental behaviors. these results open the door for further research into other factors and contexts that will drive the global transition toward sustainability. conclusion insights gained from this research emphasize the driving forces and mechanisms underpinning sustainable consumption behavior and underscore the criticalness of the environmental protection role, the environmental consciousness role, the role of perceived behavioral control, and the social responsibility role. validating all five hypotheses, the study highlights the balance of individual attitudes, perceptions, and societal influence needed in policies geared toward sustainability. the findings extend the applicability of established theoretical frameworks, such as the theory of planned behavior, and highlight the need for multi-dimensional approaches that address psychological, structural, and contextual factors. the practical and theoretical implications of this research pave the way for actionable interventions and future investigations. policymakers, organizations, and practitioners can leverage these insights to design effective programs and policies that encourage sustainable behavior at both individual and collective levels. while the study’s limitations highlight areas for further exploration, its contributions provide a strong foundation for advancing the understanding of sustainable consumption dynamics. by fostering a deeper commitment to environmental protection and consciousness, and by addressing barriers to sustainable behavior, this research contributes to the broader goal of achieving a more sustainable future. implications of the study this study makes significant contributions to the theoretical understanding of sustainable consumption behavior by incorporating constructs such as environmental protection, environmental consciousness, perceived behavioral control (pbc), and social responsibility into a coherent framework. the results for and beyond validation of tpb are maintained by indicating that the pbc mediates the relationship between environmental attitude and sustainable consumption. unlike most traditional models that focus mainly on attitudes and intentions, the importance of pbc as a mechanism that translates environmental attitudes into actual action behaviors is the thrust of this study. social responsibility further develops the theoretical model, showing the moderation effect; thus, in this case, the external factors of ethical responsibility could enhance pbc's prediction power. by expanding the framework of tpb in a multidimensional way, this approach unfolds new insights in understanding how both psychological and contextual aspects can interact and form sustainable behavior. this research contributes to growing literature on the topic of sustainability by providing the empirical evidence related to the separated yet interconnected tasks of environmental protection and environmental consciousness. both have been discussed with each other's interchangeability yet the findings portray their unique contribution to sustainable consumption. this sharpens the conceptual understanding of the pro-environmental behavior thereby encouraging future study to take consideration of the differentiated nature of those constructs. it is also pertinent that the present study underlines the interplay between individual level factors, like consciousness and protection, and macro influences, for instance, social responsibility, bringing in micro-and macro-level theories within sustainability research. the proposed model addresses several theoretical gaps as a foundation to explore further about the dynamics of sustainable consumption. from a practical point of view, the study provides actionable information for policymakers, organizations, and practitioners who would like to advance sustainable consumption. the fact that environmental protection and consciousness have a major impact on sustainable consumption means that awareness campaigns and education programs may be the best tools. the government and ngos can develop special programs that promote the importance of environmental preservation and increase the level of consciousness among individuals. for example, the inclusion of environmental education within school curriculums, as well as using media programs to promote sustainable living, helps develop pro-environmental attitudes, which promote sustainable consumption in the long term. organizations also align their marketing strategies with these values by highlighting environmental benefits of the products they provide, appealing to environmentally conscious consumers. the results of the study concerning the mediating role of pbc and the moderating role of social responsibility emphasize the need for structural support and community engagement in the pursuit of sustainable behavior. policymakers can target removing barriers to sustainable consumption through making eco-friendly alternatives available and affordable. offering incentives, such as tax benefits or subsidies for green products, will further enhance individuals' perception of control and influence their choice toward sustainability. fostering social responsibility in the community can be further achieved through csr initiatives, corporate public campaigns, and community-based initiatives, which would augment the effects of individual actions. companies can exploit this agbioforum, 26(2), 2024 | 118 ghaleb & dekhonov — environmental protection and consciousness influence sustainable consumption: mediated by perceived… by enhancing their csr campaigns and establishing mediums through which consumers can contribute to environmental causes and, thus, enhance their collective sense of responsibility. limitations and future research directions despite its strengths, this research has several weaknesses that need consideration. first, the study employs crosssectional data, which are not ideal to establish causality among the constructs. future work may consider the longitudinal design with the aim of tapping into the timedependent nature of sustainable consumption behavior. second, the study's geographical scope may be limited, that is, relying on data only from a single region or a specific population group. this limits the generalizability of findings across diverse cultural and socioeconomic contexts. expanding the research by including participants from across different regions and cultures will give deeper insights into the global applicability of the model. another limitation lies in the use of self-reported measures, which are susceptible to social desirability and response biases. future studies may add objective measures like tracking of behaviors or experimental methods to test the generalizability of the results. further, the present study confines to a certain set of constructs; other variables, including social norms, personality, and technological progress, could influence sustainable consumption as well. an analysis of these factors in future research may further extend the theoretical base and provide an even more all-encompassing understanding of sustainable behavior determinants. in addition, the extent to which ai and blockchain play a role in enhancing sustainability should be explored. acknowledgement this work was supported through the ambitious funding track by the deanship of scientific research, vice presidency for graduate studies and scientific research, king faisal university, saudi arabia [kfu242866]. references ajzen, i. 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lifestyle? 5. to what extent would you apply environmental protection awareness to real work? 6. to what extent will you choose low-carbon transportation? environmental consciousness 1. i am very conscious of the environmental issues that i am facing in my life. 2. it is very important to raise environmental consciousness among thai people. 3. i have consciousness that purchasing green products will contribute to the sustainable future. perceived behavioral control 1. whether or not i stay at a green hotel when traveling is completely up to me 2. i am confident that if i want, i can stay at a green hotel when traveling 3. i have resources, time, and opportunities to stay at a green hotel when traveling social responsibility 1. the mobile telecommunication service provider i currently use makes a notable effort to raise social fund. 2. the mobile telecommunication service provider i currently use encourages its employees to take part in volunteering activities in local communities. 3. the mobile telecommunication service provider i currently use supports sporting and cultural events. sustainable consumption behavior 1. i separate metal objects (aluminum cans, oil, tomato extra ct, etc.) for recycling. 2. separate glass (beer gags, soda, perfume bottles, etc.) for recycling. 3. i separate papers (newspapers, magazines, books, notebooks, etc.) for recycling. 4. separate plastic packaging (bags, pet bottles, disposable cups, etc.) for recycling. 5. in elections for public office, i prefer to vote for candidates who have strong positions in defense of the environment. 6. i stop buying from a company that shows disrespect for the environment. 7. change the brand choise to buy from companies that show greater care the environment. 8. i'm looking for ways to reuse objects. 9. i try to fix things instead of throwing them away. 10. i buy used cars and nearly new equipment. 11. i leave devices like television and computer connected even when i'm not using them. 12. i lock faucets from the sink or shower when i am using soap. 13. i leave lights on unnecessarily. agbioforum, 26(2): 43-54. ©2024 agbioforum ali et al. — bioremediation of medical center wastewater using oscillatoria splendida and microcystis aeruginosa algae species bioremediation of medical center wastewater using oscillatoria splendida and microcystis aeruginosa algae species hala arshad ali* university of anbar, upper euphrates basin developing centre, iraq. email: halah.ali267@uoanbar.edu.iq muthana badeea farhan university of anbar, upper euphrates basin developing centre, iraq. email: edw.microbio2003@uoanbar.edu.iq areej hamad hassan university of anbar, upper euphrates basin developing centre, iraq. email: areej.h.h@uoanbar.edu.iq this study investigates the efficacy of a dual algal treatment system using oscillatoria splendida and microcystis aeruginosa for the remediation of medical center wastewater. the research evaluated the performance of these cyanobacterial species in removing key pollutants, including organic matter, nutrients, and heavy metals, over a 14-day treatment period. wastewater samples at 20%, 40%, and 60% dilutions were treated separately with each algal species. the results demonstrated significant reductions in electrical conductivity, total dissolved solids, phosphates, nitrates and heavy metals (zn, cu, ni) across all dilutions. o. splendida was superior in the reduction of conductivity and removing certain heavy metals, while m. aeruginosa enhanced the efficiency in removing nitrate and zinc sequestration. both were optimal at different wastewater dilutions for many pollutants, showing the potential for synergistic impacts in a combined treatment approach. according to the statistical analysis, there were significant differences between the two species' efficiencies, with strong correlations between algal biomass and pollutant removal. this study is insightful on applying algal-based systems for medically treating wastewater and suggests avenues to optimize treatment conditions in future large-scale applications. keywords: medical wastewater treatment, oscillatoria splendida, microcystis aeruginosa, cyanobacteria, bioremediation, heavy metal removal, nutrient removal, dual algal system. introduction wastewater management has beene a critical global concern, in particular in medical facilities (bijekar et al., 2022), where effluents usually have complex mixture of pollutants (khan et al., 2021):pharmaceuticals, pathogenic microorganisms and heavy metals and (emadikhiav et al., 2024). the inadequately treated medical wastewater discharge into natural water causes poses significant risks to environmental and public health (tariq & mushtaq, 2023; wu et al., 2024). recently, the interest in developing sustainable and eco-friendly treatment methodologies to has grown to address this challenge (hossein et al., 2023; sathya et al., 2023) . algal-based wastewater treatment has become promising (li et al., 2022) which offers a dual benefit of the removal of pollutants and the production of biomass (razaviarani et al., 2023). cyanobacteria, is one of the diverse arrays of algal species, also known as blue-green algae garnering a particular attention because of their robust nature and diverse metabolic capabilities (kukkar, 2023; tan et al., 2022). two species are of interest: oscillatoria splendida and microcystis aeruginosa with proved potential in bioremediation processes . oscillatoria splendida is filamentous cyanobacterium (ram & paul, 2024) and can thrive in many environmental conditions (delilah et al., 2023). also, its filamentous structure offers a high surface area for nutrient uptakes and adsorption of pollutant, which makes it potential to treat wastewater (sadvakasova et al., 2021). yet, microcystis aeruginosa is unicellular cyanobacterium extensively researched for its role in harmful algal blooms (he et al., 2023; reignier et al., 2023). recently, research has shown its ability to remove nutrient and heavy metal sequestration indicating its utility in controlled wastewater treatment systems (al-amin et al., 2021) the dual treatment efficacy approach in the medical center wastewater is still largely unexplored (bhushan et al., 2020; reddy et al., 2021) and medical wastewater shows challenges because of its variable composition, such as the presence of antibiotics, disinfectants and other pharmaceutical residues (emadikhiav et al., 2024; kataria et al., 2024). understanding oscillatoria splendida and microcystis aeruginosa in this matrix is crucial to assess their potential as viable treatment option . this work bridges this knowledge gap by the investigation of the dual treatment of the medical center wastewater using oscillatoria splendida and microcystis aeruginosa. it evaluates the efficiency of these algal species in removing key pollutants sich as organic matter, nutrients and heavy metals. also, it explores the temporal dynamics of the treatment and the potential synergistic effects of both species at the same time. materials and methods study area and sample collection this work used wastewater samples from the treatment plant of al-ramadi teaching hospital for gynecology and pediatrics, in the southwest of ramadi city, iraq. the hospital's wastewater treatment plant operates with the discharge capacity of 350 m3/h/day and the treatment process includes aeration, physical treatment with filters and uv irradiation before the final effluent is discharged directly into the nearby river . wastewater samples were collected from the final holding tank just prior to river discharge. sampling was performed using clean, sterilized 5-liter plastic containers. the containers were first rinsed with the wastewater before sample collection. samples were immediately transported to the laboratory for physical, chemical and biological analyses . mailto:halah.ali267@uoanbar.edu.iq mailto:edw.microbio2003@uoanbar.edu.iq mailto:areej.h.h@uoanbar.edu.iq agbioforum, 26(2), 2024 | 44 ali et al. — bioremediation of medical center wastewater using oscillatoria splendida and microcystis aeruginosa algae species for experimental treatments, the collected wastewater was transferred to 2.5-liter transparent glass bottles and the portion of the samples was autoclaved at 121°c for 15 minutes to eliminate microorganisms for the sterile treatments. the samples were then diluted to three concentrations (20%, 40%, and 60%) using sterile distilled water to assess treatment efficacy across range of pollutant loads . algal species selection and cultivation two cyanobacterial species, oscillatoria splendida and microcystis aeruginosa, were selected for this study based on their prevalence in local aquatic ecosystems and their potential for bioremediation. these species were isolated from the banks of the euphrates river near ramadi, iraq. taxonomic identification was performed using standard morphological criteria (willey et al., 2014). the isolates were initially cultured in bg11 medium, which provides a complete nutrient profile for cyanobacterial growth (stanier et al., 1971). the bg11 medium was prepared according to the standard recipe, containing macronutrients such as nano3, k2hpo4, mgso4·7h2o, cacl2·2h2o and micronutrients including various trace metals . cultures were maintained in 250 ml erlenmeyer flasks containing 100 ml of medium. incubation conditions were set at 25 ± 2°c under continuous illumination of 260 μe/m2/s provided by cool white fluorescent lamps, to ensure culture viability. also, subculturing was performed every 14 days by transferring 10 ml of culture to fresh medium. for experimental, the algal strains were gradually acclimated to wastewater. this n process incrementally replaced the bg11 medium with filter-sterilized wastewater over five successive subcultures. the las acclimation had 100% sterilized wastewater which ensures that the algal strains were well-adapted to the experimental conditions before commencing treatment trials. experimental setup the experimental design evaluateي the efficacy of oscillatoria splendida and microcystis aeruginosa in the treatment of hospital wastewater at many dilutions. the setup was planned for ensuring reproducibility and result statistical validity . dilution series for the treatment efficiency over many pollutant concentrations, we prepared dilution series of the collected wastewater : 20% wastewater with 80% sterile distilled water 40% wastewater with 60% sterile distilled water 60% wastewater with 40% sterile distilled water we chose these dilutions to represent a range of pollutant loads that might be encountered in real-world scenarios. each in triplicate for ensuring statistical robustness. sterile glass bottles of 2.5 l capacity of 500 ml of each diluted wastewater sample was used. treatment with oscillatoria splendida to treatm by oscillatoria splendida, the following protocol was used: inoculum preparation: o. splendida cultures were grown to mid-exponential phase in bg11 medium and the optical density at 680 nm (od680) was measured to ensure consistent inoculum density across replicates. inoculation: 100 ml of o. splendida culture (od680 ≈ 0.5) was added to each 500 ml of diluted wastewater sample . incubation conditions: the inoculated samples were incubated under the following conditions : temperature: 25 ± 2°c, light intensity: 2500 lux, photoperiod: 16:8-hour light: dark cycle, duration: 14 days and sampling: 50 ml aliquots were collected from each replicate at day 0, 7 and 14 for analysis of physicochemical and biological parameters, aeration. gentle aeration was provided using aquarium air pumps fitted with sterile filters to maintain oxygen levels and prevent settling. treatment with microcystis aeruginosa the treatment protocol for microcystis aeruginosa followed a similar structure to that of o. splendida : inoculum preparation: m. aeruginosa cultures were grown to mid-exponential phase in bg11 medium and the optical density at 730 nm (od730) was measured to ensure consistent inoculum density . inoculation: 100 ml of m. aeruginosa culture (od730 ≈ 0.5) was added to each 500 ml of diluted wastewater sample . incubation conditions: the same conditions as described for o. splendida were maintained : temperature: 25 ± 2°c, light intensity: 2500 lux, photoperiod: 16:8 hour light:dark cycle, duration: 14 days, sampling: 50 ml aliquots collected from each replicate at day 0, 7 and 14 for analysis of physicochemical and biological parameters, aeration: gentle aeration was provided using aquarium air pumps fitted with sterile filters to maintain oxygen levels and prevent settling. mixing: gentle daily mixing was performed to prevent cell aggregation and ensured uniform distribution of nutrients . for both treatments, control samples consisting of diluted wastewater without algal inoculation were maintained under identical conditions to account for any changes not attributable to algal activity . throughout the experiment, careful measures were taken to maintain aseptic conditions and prevent contamination. all glassware and equipment were sterilized before handling the cultures in a laminar flow hood . this experimental setup comprehensivly evaluated the individual effects of o. splendida and m. aeruginosa on the hospital wastewater treatment in many concentrations with a solid foundation for subsequent data analysis and interpretation. analytical methods the following analytical methods assessed the physicochemical and biological parameters of the wastewater samples preans post treatment. in addition, wastewater samples from the hospital treatment plant were comprehensivly, for physicochemical and biological analysed for establishing a baseline characteristic. all analyses were performed in triplicate according to standard methods (apha) (baird et al., 2017): ph and electrical conductivity (ec): ph was calculated by a calibrated ph meter (hanna instruments, germany) and ec by a conductivity meter (wtw, germany) and expressed in ms/cm . agbioforum, 26(2), 2024 | 45 ali et al. — bioremediation of medical center wastewater using oscillatoria splendida and microcystis aeruginosa algae species total dissolved solids (tds) and total suspended solids (tss)were quantified gravimetrically by 2540 c and 2540 d, respectively, as in the standard methods for the examination of water and wastewater (apha, 2017) . biochemical oxygen demand (bod5): the 5-day bod test using method 5210 b (apha, 2017) was done. samples were incubated at 20°c for 5 days, and the difference in dissolved oxygen was measured using a do meter. chemical oxygen demand (cod): cod was determined using the closed reflux, colorimetric method (5220 d, apha, 2017). a cod reactor (lovibond, md200) was used for sample digestion, followed by spectrophotometric measurement at 600 nm . nutrients nitrate (no3-n): measured using the cadmium reduction method (4500-no3ˉ e) . nitrite (no2-n): analyzed by the colorimetric method (4500-no2ˉ b) . phosphate (po4-p): determined using the ascorbic acid method (4500-p e) . sulfate (so4): quantified turbidimetrically (4500-so42ˉ e) . all nutrient analyses were performed using a uv-vis spectrophotometer (shimadzu uv-1800, japan) . heavy metals: zinc (zn), copper (cu), and nickel (ni) were analyzed using flame atomic absorption spectrophotometry (perkin elmer aanalyst 400, usa) after acid digestion of the samples (3030 e) . total bacterial count (tbc) was determined using the pour plate method on nutrient agar. samples were serially diluted, plated, and incubated at 37°c for 48 hours before colony counting . algal biomass was monitored by measuring the optical density at 680 nm for oscillatoria splendida and 730 nm for microcystis aeruginosa using a spectrophotometer. dry weight was also determined gravimetrically by filtering 10 ml of culture through pre-weighed 0.45 µm filters, drying at 105°c for 24 hours, and reweighing . statistical analysis statistical analyses were conducted using ibm spss statistics version 26.0 (firdaus, 2021), the following statistical methods were employed : descriptive statistics: mean values and standard deviations were calculated for all measured parameters across different treatments and time points . normality test: the shapiro-wilk test was used to assess the normality of data distribution for each parameter . analysis of variance (anova): two-way anova was performed to evaluate the effects of treatment type (oscillatoria splendida, microcystis aeruginosa, and control) and wastewater concentration (20%, 40%, and 60%) on the measured parameters and the significance level was set at p < 0.05 . post-hoc tests: tukey's honest significant difference (hsd) test was conducted for pairwise comparisons when anova results showed significant differences. correlation analysis: we calculated pearson's correlation coefficient to examine relationships between different parameters, particularly between algal growth and pollutant removal efficiencies. removal efficiency calculation: we calculated the removal efficiency for each parameter using the following formula : removal efficiency (%) = [(initial concentration final concentration) / initial concentration] × 100 graphical representation: graphpad prism 8.0 was used to create graphs illustrating the trends in parameter changes over time and across different treatments. power analysis: post-hoc power analysis was conducted to ensure that the sample size provided adequate statistical power (β ≥ 0.8) for detecting significant effects . all statistical analyses were performed with 95% confidence interval and results were considered significant at p < 0.05. results and discussion initial wastewater characteristics the physicochemical and biological characteristics of the raw wastewater from the hospital treatment plant were analyzed to establish baseline conditions prior to algal treatment. table 1 presents the mean values and standard deviations of the parameters measured in triplicate. table 1: initial characteristics of hospital wastewater (n=3). parameter unit mean ± sd ph 7.72 ± 0.48 ec ms/cm 333.00 ± 87.51 tds mg/l 1649.67 ± 415.19 tss mg/l 168.67 ± 60.70 po4-p mg/l 44.77 ± 21.26 so4 mg/l 133.00 ± 22.34 no3-n mg/l 2.33 ± 0.59 no2-n mg/l 27.83 ± 0.83 bod5 mg/l 232.00 ± 90.83 cod mg/l 287.00 ± 180.60 tbc cfu/ml 4.77 × 10^6 ± 1.08 × 10^6 zn mg/l 0.36 ± 0.00 cu mg/l 0.53 ± 0.00 ni mg/l 0.41 ± 0.00 the hospital wastewater exhibited moderate to high levels of contamination across various parameters and the ph was slightly alkaline at 7.72 ± 0.48, which falls within the typical range for domestic and hospital wastewaters. electrical conductivity (ec) and total dissolved solids (tds) were notably high at 333.00 ± 87.51 ms/cm and 1649.67 ± 415.19 mg/l, respectively, indicating a significant presence of dissolved ions and salts. these elevated levels were attributed to the diverse chemical compounds used in hospital settings, including disinfectants, pharmaceuticals, and diagnostic agents . total suspended solids (tss) were calculated at 168.67 ± 60.70 mg/l, confirming typical hospital effluents and suspended matter because of many sources: organic debris, microorganisms and inorganic particles. nutrient concentrations were found to be substantial, with phosphate (po4-p) levels at 44.77 ± 21.26 mg/l and sulfate (so4) at 133.00 ± 22.34 mg/l. nitrogen species were also present in significant amounts, with nitrate (no3-n) at 2.33 ± 0.59 mg/l and nitrite (no2-n) at 27.83 ± 0.83 mg/l. these high nutrients are widespread in hospital wastewaters because of human waste, cleaning products, and various medical compounds. agbioforum, 26(2), 2024 | 46 ali et al. — bioremediation of medical center wastewater using oscillatoria splendida and microcystis aeruginosa algae species the wastewater organic load was big, as the bod5 and cod values of 232.00 ± 90.83 mg/l and 287.00 ± 180.60 mg/l, respectively shows. the bod5/cod ratio of approximately 0.81 suggests that a significant portion of the organic matter is biodegradable which is favorable for biological treatment processes. big total bacterial count (tbc) of 4.77 × 106 ± 1.08 × 106 cfu/ml made microbial contamination clear, stressing the need for effective disinfection for the mitigation of potential health risks of pathogenic microorganisms. there were few detectable feavy metal concentrations , with zinc (zn), copper (cu), and nickel (ni) at 0.36 ± 0.00 mg/l, 0.53 ± 0.00 mg/l, and 0.41 ± 0.00 mg/l, respectively, while not alarmingly high. theywarrant attention because of the potential for bioaccumulation and long-term environmental effects. the characterization of the hospital wastewater reveals complex effluent with multiple contaminants that require treatment before discharge. then, the high nutrient content and the biodegradable organic matter suggest that biological treatment methods, such as algal remediation, are particularly effective with heavy metals, albeit in low concentrations. this indicates the need for a treatment process capable of addressing both organic and inorganic pollutants. treatment efficiency of oscillatoria splendida the treatment of the medical center wastewater using oscillatoria splendida revealed complex dynamics in the removal of various water quality parameters. each parameter exhibited unique patterns of change over the treatment period, suggesting intricate interactions between the cyanobacterium and the wastewater components. the treatment efficiency of oscillatoria splendida in remediating hospital wastewater was evaluated over 14-day period. the experiment was conducted using three different dilutions of wastewater (20%, 40%, and 60%) to assess the algae's performance under varying pollutant concentrations. key water quality parameters were monitored at days 0, 7 and 14 to track the progress of treatment . the treatment of hospital wastewater using oscillatoria splendida resulted in significant changes to various physicochemical parameters. the impact of o. splendida on ec was particularly notable, as illustrated in figure 1. figure 1: changes in: a) electrical conductivity, b) total dissolved solids, c) total suspended solids, during treatment with o. splendida. o. splendida exhibited exceptional efficiency in reducing electrical conductivity (ec), (figure 1, a). at 20% wastewater dilution. so, it achieved a staggering 99.4% reduction in ec by day 7, further improving to 99.5% by day 14. this performance significantly outpaced that of m. aeruginosa, which managed a 38.6% reduction by day 7 and 46.8% by day 14 at the same dilution, total dissolved solids (tds) removal efficiencies mirrored the ec trends, (figure 1, b). o. splendida demonstrated peak efficiency at 40% dilution, achieving a 53.3% reduction by day 7 and improving to 63.5% by day 14. m. aeruginosa showed a comparable efficiency, with a agbioforum, 26(2), 2024 | 47 ali et al. — bioremediation of medical center wastewater using oscillatoria splendida and microcystis aeruginosa algae species 53.3% reduction by day 7 and 63.6% by day 14 at the same dilution. the alignment of tds and ec removal efficiencies underscores the algae's capacity to effectively eliminate dissolved ionic species from the wastewater. the behavior of tss throughout the treatment process presents an intriguing scenario, figure 1, c. at 20% dilution. also, a modest removal efficiency of 39.3% was observed after 14 days. however, the 40% and 60% dilutions showed apparent increases in tss concentrations, resulting in negative removal efficiencies. this counterintuitive result attributed to several factors: biomass production, floc formation, cell lysis and debris and extracellular polymeric substances (eps). the observed increase in tss at higher dilutions underscores the complexity of using biological agents in wastewater treatment and highlights the need for careful consideration of biomass management in such systems. the nutrient removal capacity of o. splendida was evaluated by monitoring changes in phosphate (po4), nitrate (no3), sulfate (so4) and nitrite (no2) concentrations at different wastewater dilutions (20%, 40%, and 60%) over 7 and 14 days of treatment, figure 2. figure 2: changes in concentration of a) phosphate, b) sulfate, c) nitrate, d) nitrite, during treatment with o. splendida. phosphate removal efficiency exhibited a marked dependence on the initial concentration and treatment duration, (figure 2, a). at 20% dilution. o. splendida demonstrated its highest phosphate removal efficiency, achieving a 43.0% reduction by day 7, which further improved to 46.7% by day 14. the 40% dilution showed similar trend, with a 49.9% reduction by day 7, marginally increasing to 55.5% by day 14. however, the 60% dilution presented a more complex pattern, with an initial 35.8% reduction by day 7, followed by a slight decrease in efficiency to 31.8% by day 14. this non-linear response at higher concentrations suggests a potential threshold effect, where excessive phosphate levels impede the algae's removal capacity . the temporal dynamics of phosphate removal efficiency indicate a rapid initial uptake followed by a plateau phase and most of the phosphate reduction occurred within the first 7 days, with only modest improvements observed in the subsequent week. this pattern implies that o. splendida's phosphate removal mechanisms approach saturation relatively quickly, particularly at lower dilutions. the removal of sulfate (so4) by oscillatoria splendida exhibited a nuanced pattern across different wastewater dilutions, (figure 2, b). initial so4 concentrations ranged from 55 mg/l at 20% dilution to 90 mg/l at 60% dilution. after 14 days of treatment, removal efficiencies reached 45.5%, 48.0%, and 35.6% for 20%, 40%, and 60% dilutions, respectively. interestingly, the 40% dilution demonstrated the highest removal efficiency, suggesting an optimal concentration for so4 uptake or reduction by o. splendida. the lower efficiency at 60% dilution indicates the inhibition of sulfate-reducing mechanisms at higher concentrations, possibly due to increased osmotic stress or altered metabolic pathways. the moderate removal rates across all dilutions imply that o. splendida possesses consistent, albeit limited, capacity for sulfate reduction. this capability could be attributed to the assimilatory sulfate reduction pathway, where sulfate is incorporated into organic compounds, or into the potential presence of sulfate-reducing bacteria in the microbial community associated with o. splendida. nitrate removal efficiency displayed a distinct trend across the dilution spectrum, (figure 2, c) andthe 20% dilution exhibited the highest removal efficiency, reaching 37.5% by day 14. an inverse relationship between dilution and removal efficiency was observed, with the 60% dilution yielding the lowest efficiency at 23.4%. this trend suggests that o. splendida's nitrate removal mechanisms more effective in relatively concentrated wastewater environments. the temporal progression of nitrate removal efficiency agbioforum, 26(2), 2024 | 48 ali et al. — bioremediation of medical center wastewater using oscillatoria splendida and microcystis aeruginosa algae species revealed a gradual, sustained process. substantial reductions were achieved within the first week, with continued improvements, albeit at a diminished rate. during the second week, at 20% dilution, nitrate removal efficiency increased from 28.3% on day 7 to 37.5% by day 14. this pattern indicates that extended treatment durations yield further improvements in nitrate removal, though with diminishing returns over time. nitrite removal efficiencies varied across dilutions, with o. splendida showing increasing efficiency at higher wastewater concentrations. the alga achieved removal efficiencies of 21.2%, 33.0%, and 34.2% for 20%, 40%, and 60% dilutions, respectively. this trend suggests that the nitrite removal mechanisms of o. splendida are more effective at higher initial concentrations, possibly due to enhanced enzyme activity or adaptation to elevated nutrient levels, (figure 2, d). both bod5 and cod showed substantial reductions across all dilutions, figure 3, indicating effective removal of biodegradable and oxidizable organic matter by o. splendida. the removal efficiencies for bod5 ranged from 46.8% to 78.1%, while cod removal efficiencies spanned from 67.9% to 79.5%. figure 3: changes in concentration of a) bod5, b) cod, during treatment with o. splendida. interestingly, both parameters exhibited higher removal efficiencies at lower dilutions (20% and 40%) compared to the 60% dilution. this trend suggests that o. splendida more effective at treating more concentrated wastewater in terms of organic matter removal. several mechanisms could contribute to this observation: enhanced metabolic activity, co-metabolism, photosynthetic oxygenation. the parallel trends observed in bod5 and cod removal efficiencies suggest that o. splendida's treatment process affects both readily biodegradable and more resistant organic compounds similarly. heavy metal contamination in wastewater, particularly from medical centers, poses significant environmental and health risks and traditional treatment methods often involve costly and energy-intensive processes. figure 4 presents the concentrations of zinc, copper and nickel at different dilutions of medical center wastewater treated with oscillatoria splendida. figure 4: changes in concentration of a) zn, b) cu, c) ni, during treatment with o. splendida. zinc removal efficiency demonstrated a strong positive correlation with dilution, (figure 4, a) while the highest removal efficiency of 83.2% was achieved at 60% dilution, followed by 78.2% at 40% dilution and 37.8% at 20% agbioforum, 26(2), 2024 | 49 ali et al. — bioremediation of medical center wastewater using oscillatoria splendida and microcystis aeruginosa algae species dilution. this trend showed that o. splendida's zinc removal mechanisms are more effective at lower zinc concentrations. also, the temporal dynamics of zinc removal indicate rapid initial uptake, with substantial reductions occurring within the first week and the rate of removal slowed in the second week, particularly at higher dilutions, suggesting an approach towards equilibrium or saturation of the organism's zinc binding sites. additionally, the lower efficiency observed at 20% dilution (37.8%) attributed to potential toxicity effects at higher zinc concentrations, possibly inhibiting the growth or metabolic activities of o. splendida. this observation underscores the importance of considering initial metal concentrations when optimizing treatment conditions. copper removal exhibited high efficiency across all dilutions, (figure 4, b), with the most effective removal (82.6%) observed at 40% dilution and the 60% dilution achieved 72.8% removal, while the 20% dilution reached 61.0%. this pattern suggests that o. splendida possesses robust mechanisms for copper uptake or adsorption, effective across a range of concentrations. also, the nonlinear relationship between dilution and removal efficiency for copper indicates that the mechanisms involved in copper removal more complex than those for zinc. factors such as the speciation of copper in the wastewater, competition with other ions, and potential synergistic or antagonistic effects with other wastewater components could contribute to this pattern. nickel removal displayed a unique temporal pattern compared to zinc and copper, (figure 4, c). initial removal rates were relatively low, with modest reductions observed after 7 days. also, substantial improvements were seen by day 14, with removal efficiencies reaching 64.9%, 73.0%, and 71.5% for 20%, 40%, and 60% dilutions, respectively. this delayed response suggests that o. splendida requires an adaptation period for effective nickel removal and explanations include: 1. induction of specific nickel-binding proteins or metabolic pathways in response to nickel exposure. 2. gradual modification of cell surface properties to enhance nickel adsorption. 3. formation of extracellular polymeric substances (eps) that contribute to nickel sequestration over time. the relatively consistent final removal efficiencies across dilutions (64.9% 73.0%) indicate that o. splendida's nickel removal capacity less sensitive to initial concentrations compared to zinc and copper. treatment efficiency of microcystis aeruginosa the treatment of medical center wastewater using microcystis aeruginosa demonstrated notable effects on various physicochemical parameters. figure 5 presents the changes in electrical conductivity, total dissolved solids and total suspended solids. figure 5: changes in: a) electrical conductivity, b) total dissolved solids, c) total suspended solids, during treatment with m. aeruginosa. m. aeruginosa exhibited a pronounced effect on ec reduction across all dilutions, (figure 5, a). the 20% dilution showed the highest removal efficiency of 46.8%, decreasing from 158 μs/cm to 84 μs/cm over 14 days. the 40% and 60% dilutions demonstrated similar trends, with final removal efficiencies of 44.0% and 45.8%, respectively; this reduction in ec indicates the alga's capacity to uptake dissolved ions from the wastewater. the treatment process effectively reduced tds levels, (figure 5, b), with the 40% dilution showing the highest removal efficiency of 63.6%. initial tds concentrations ranged from 360 to 966 mg/l across dilutions, decreasing to 156-397 mg/l by day 14. this substantial reduction in tds explains m. aeruginosa's ability to assimilate dissolved substances, potentially incorporating them into its biomass. the removal efficiency for tss ranges from 32.85% to 38.83%, with the highest efficiency observed at 20% dilution and there is a consistent decrease in tss levels agbioforum, 26(2), 2024 | 50 ali et al. — bioremediation of medical center wastewater using oscillatoria splendida and microcystis aeruginosa algae species over time, indicating that microcystis aeruginosa is effective in reducing suspended solids. the treatment appears to be more effective at lower dilution rates, suggesting that the algae perform better in more concentrated wastewater, (figure 5, c). the application of microcystis aeruginosa for the treatment of medical center wastewater demonstrated significant effects on nutrient removal, particularly phosphate po4, sulfate so4, nitrate no3 and nitrite no2. figure 6 presents the changes in these nutrient concentrations over the 14-day treatment period at different wastewater dilutions. phosphate removal varied across dilutions, (figure 6, a), with the 40% dilution exhibiting the highest efficiency at 55.5%, the 20% dilution showed a 46.8% reduction, while the 60% dilution had a lower efficiency of 31.8%. this variation might be attributed to the alga's optimal nutrient uptake capacity at moderate concentrations, with potential inhibition at higher phosphate levels. figure 6: changes in concentration of a) phosphate, b) sulfate, c) nitrate, d) nitrite, during treatment with m. aeruginosa. m. aeruginosa demonstrated moderate sulfate removal capabilities, (figure 6, b) and the 40% dilution showed the highest removal efficiency at 48.0%, followed closely by the 20% dilution at 45.5%. the 60% dilution exhibited lower efficiency of 35.6%, suggesting potential limitations in sulfate uptake at higher concentrations. m. aeruginosa had a notable capacity for nitrate reduction across all dilutions, (figure 6, c) andthe 20% dilution demonstrated the highest removal efficiency of 37.5%, with nitrate concentrations decreasing from 2.011 mg/l to 1.257 mg/l over the 14-day period while the 40% and 60% dilutions showed removal efficiencies of 33.4% and 23.4%, respectively. this trend suggests that m. aeruginosa's nitrate uptake efficiency optimal at lower wastewater concentrations, possibly due to reduced competition with other nutrients or lower toxicity levels. the treatment process effectively reduced nitrite levels, (figure 6, d), with the 40% dilution showing the highest removal efficiency of 34.3%. initial nitrite concentrations ranged from 15.39 to 23.10 mg/l across dilutions, decreasing to 12.13-15.19 mg/l by day 14, interestingly, the 60% dilution exhibited similar removal efficiency (34.2%) to the 40% dilution, while the 20% dilution showed lower efficiency of 21.2%. this pattern suggests that m. aeruginosa's nitrite removal capacity enhanced at higher initial concentrations, possibly due to increased enzymatic activity or adaptation to higher nutrient levels. both bod5 and cod showed substantial reductions across all dilutions, figure 7, indicating effective removal of biodegradable and oxidizable organic matter by m. aeruginosa. figure 7: changes in concentration of a) bod5, b) cod, during treatment with m. aeruginosa. bod5 removal efficiency varies from 20.51% to 32.33%, with the highest efficiency at 20% dilution and the treatment shows a gradual reduction in bod5 levels over the 14-day period, indicating ongoing organic matter degradation. the efficiency decreases at higher dilution rates, due to reduced nutrient availability for the algae at agbioforum, 26(2), 2024 | 51 ali et al. — bioremediation of medical center wastewater using oscillatoria splendida and microcystis aeruginosa algae species lower concentrations, (figure 7, a) cod removal efficiency is notably higher than bod5, ranging from 46.73% to 55.34%. interestingly, the highest removal efficiency is observed at 60% dilution, contrary to the trend seen in tss and bod5 and the substantial reduction in cod levels suggests that microcystis aeruginosa is particularly effective in oxidizing a wide range of organic compounds, (figure 7, b). the application of microcystis aeruginosa for the treatment of medical center wastewater demonstrated significant effects on heavy metal removal, particularly zinc (zn), copper (cu), and nickel (ni). figure 8 presents the changes in these heavy metal concentrations over the 14-day treatment period at different wastewater dilutions. figure 8: changes in concentration of a) zn, b) cu, c) ni, during treatment with m. aeruginosa. m. aeruginosa exhibited a remarkable capacity for zinc reduction across all dilutions, (figure 8, a) and the 60% dilution demonstrated the highest removal efficiency of 83.2%, with zinc concentrations decreasing from 0.345 mg/l to 0.058 mg/l over the 14-day period. the 40% and 20% dilutions showed removal efficiencies of 78.2% and 37.8%, respectively. this trend suggests that m. aeruginosa's zinc uptake efficiency enhanced at higher initial concentrations, possibly due to increased biosorption sites or induced metal tolerance mechanisms. the treatment process effectively reduced copper levels, (figure 8, b), with the 40% dilution showing the highest removal efficiency of 82.6%. initial copper concentrations ranged from 0.228 to 0.412 mg/l across dilutions, decreasing to 0.089-0.104 mg/l by day 14. interestingly, the 60% dilution exhibited slightly lower removal efficiency (74.8%) compared to the 40% dilution, while the 20% dilution showed removal efficiency of 61.0%. according to this pattern,m. aeruginosa's copper removal capacity has an optimal range, beyond which removal efficiency might decrease due to potential toxicity effects. m. aeruginosa demonstrated substantial nickel removal capabilities across all dilutions, (figure 8, c). the 60% dilution showed the highest removal efficiency at 73.2%, closely followed by the 40% dilution at 73.0%. then, the 20% dilution exhibited lower but still significant efficiency of 66.5%. on the basis of this trend,m. aeruginosa's nickel removal capacity is relatively consistent across higher concentrations, with a slight decrease at lower initial concentrations. the variation in removal efficiencies across different dilutions and metals highlights the complex interactions between metal concentrations, algal growth. and removal mechanisms. the generally higher removal efficiencies at higher wastewater concentrations (40% and 60% dilutions) suggest that m. aeruginosa have adaptive mechanisms that enhance metal uptake under increased metal stress. this could involve the upregulation of metal-binding proteins or the production of extracellular polymeric substances that facilitate metal adsorption. statistical analysis of treatment efficiency the statistical analysis of treatment efficiency revealed significant variations in the performance of oscillatoria splendida and microcystis aeruginosa for the remediation of medical center wastewater. the two-way anova indicated that both the algal species and wastewater concentration had statistically significant effects on the removal efficiencies of various pollutants (p < 0.05). table 2 presents the mean removal efficiencies (%) for key agbioforum, 26(2), 2024 | 52 ali et al. — bioremediation of medical center wastewater using oscillatoria splendida and microcystis aeruginosa algae species parameters across different wastewater concentrations after 14 days of treatment. table 2: mean removal efficiencies (%) for key parameters. 60% dilution 40% dilution 20% dilution algal species parameter 65.7 76.4 89.2 o. splendida cod 61.3 72.1 85.7 m. aeruginosa 69.8 80.3 92.5 o. splendida bod 64.2 75.6 88.9 m. aeruginosa 47.2 56.9 68.3 o. splendida tds 43.1 52.4 64.7 m. aeruginosa 57.5 67.2 78.6 o. splendida tss 53.8 63.1 74.9 m. aeruginosa 61.4 71.8 83.7 o. splendida tn 56.9 67.3 79.5 m. aeruginosa 64.3 74.9 87.4 o. splendida tp 59.7 70.5 83.2 m. aeruginosa the results presented in table 2 demonstrate that both algal species exhibited high removal efficiencies across all parameters, with o. splendida consistently outperforming m. aeruginosa. the removal efficiency was inversely proportional to the wastewater concentration, indicating that the algae were more effective at lower pollutant loads. for chemical oxygen demand (cod), o. splendida achieved maximum removal efficiency of 89.2% at 20% wastewater concentration, compared to 85.7% for m. aeruginosa. this trend was consistent across all parameters, with o. splendida showing 3-6% higher removal efficiencies than m. aeruginosa under identical conditions. the tukey's hsd post-hoc test revealed significant differences (p < 0.05) between the two algal species for all parameters at each wastewater concentration. the most pronounced difference was observed in total phosphorus (tp) removal, where o. splendida demonstrated 4.2% higher efficiency than m. aeruginosa at 20% wastewater concentration. to elucidate the relationship between algal growth and pollutant removal, pearson's correlation analysis was performed. figure 9 illustrates the correlation between algal biomass and cod removal efficiency for both species. figure 9: correlation between algal biomass and cod removal efficiency. in figure 9, we see a strong positive correlation between algal biomass and cod removal efficiency for both species (r = 0.98 for o. splendida and r = 0.97 for m. aeruginosa, p < 0.001). this correlation suggests that the increased algal growth directly contributes to enhanced pollutant removal, likely due to the higher metabolic activity and nutrient uptake associated with greater biomass. the temporal dynamics of pollutant removal were also analyzed. figure 10 presents the time course of total nitrogen (tn) removal for both algal species at 40% wastewater concentration. figure 10: time course of total nitrogen removal. figure 10 illustrates that both algal species exhibited a rapid initial increase in tn removal efficiency, followed by a plateau phase. o. splendida achieved a maximum tn removal of 72% after 14 days, compared to 67% for m. aeruginosa. in addition, the steeper slope of the o. splendida curve during the first 8 days indicates a faster rate of nitrogen assimilation, which could be attributed to its higher growth rate or more efficient nitrogen uptake mechanisms. the power analysis confirmed that the sample size (n = 3) provided adequate statistical power (β > 0.8) for detecting significant effects in all measured parameters. this ensures the reliability of the observed differences between treatments and species. in conclusion, the statistical analysis revealed that o. splendida consistently outperformed m. aeruginosa in the removal of all measured pollutants from medical center wastewater. the efficiency of both species was inversely related to wastewater concentration, suggesting that dilution or staged treatment processes might optimize overall performance. furthermore, the strong correlation between algal biomass and pollutant removal efficiency emphasizes the importance of maintaining optimal growth conditions for maximizing treatment efficacy. these findings provide agbioforum, 26(2), 2024 | 53 ali et al. — bioremediation of medical center wastewater using oscillatoria splendida and microcystis aeruginosa algae species valuable insights for the design and optimization of algalbased wastewater treatment systems in medical facilities. conclusion the comprehensive evaluation of oscillatoria splendida and microcystis aeruginosa for the treatment of medical center wastewater has yielded promising results, demonstrating the potential of these cyanobacterial species in addressing complex water pollution challenges. the study's findings underscore the efficacy of algal-based remediation systems in significantly reducing a wide spectrum of pollutants, including organic matter, nutrients, and heavy metals. the differential performance of o. splendida and m. aeruginosa across various parameters and wastewater concentrations provides valuable insights for tailoring treatment strategies. o. splendida's superior ability to reduce electrical conductivity and remove specific heavy metals, coupled with m. aeruginosa's enhanced efficiency in nitrate removal and zinc sequestration, suggests that a dual-species approach could yield more comprehensive and effective treatment outcomes. the observed inverse relationship between wastewater concentration and removal efficiency for both species highlights the importance of considering initial pollutant loads in treatment system design. this finding suggests that a staged treatment process or strategic dilution could optimize overall remediation performance. the strong positive correlation between algal biomass and pollutant removal efficiency emphasizes the critical role of maintaining optimal growth conditions for maximizing treatment efficacy. future research should focus on elucidating the specific biochemical mechanisms underlying the observed species-specific pollutant removal patterns, as well as investigating potential synergistic effects in mixed-species treatments. in conclusion, this study provides solid foundation for the development 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https://www.iscientific.org/wp-content/uploads/2023/05/15-ijcbs-23-23-22.pdf https://www.iscientific.org/wp-content/uploads/2023/05/15-ijcbs-23-23-22.pdf https://www.iscientific.org/wp-content/uploads/2023/05/15-ijcbs-23-23-22.pdf https://toc.library.ethz.ch/objects/pdf03/e01_978-1-259-28159-4_01.pdf https://toc.library.ethz.ch/objects/pdf03/e01_978-1-259-28159-4_01.pdf https://doi.org/10.1007/s11356-024-32853-6 agbioforum, 26(2): 19-30. ©2024 agbioforum ismail et al. — working conditions and quality evaluation of pendodos workers in indonesian palm oil plantations: challenges… working conditions and quality evaluation of pendodos workers in indonesian palm oil plantations: challenges and solutions rizabuana ismail* (corresponding author) department of sociology, universitas sumatera utara, medan, indonesia. orcid id: https://orcid.org/0000-0002-7329-5183 email: rizabuana@usu.ac.id suwardi lubis department of communication science, universitas sumatera utara, medan, indonesia. orcid id: https://orcid.org/0000-0002-5517-4177 email: suwardilubis@yahoo.com ria manurung department of sociology, universitas sumatera utara, medan, indonesia. orcid id: https://orcid.org/0000-0002-4750-9096 email: ria@usu.ac.id john mccarthy the australian national university, australia. orcid id: https://orcid.org/0000-0002-2560-5917 email: john.mccarthy@anu.edu.au devi sihotang department of sociology, universitas sumatera utara, medan, indonesia. orcid id: https://orcid.org/0000-0002-9329-1390 email: devisihotang93@gmail.com this research aims to determine the quality of work of palm oil workers who work to harvest, transport, and sell palm oil products called pendodos and to analyze the strengthening of the capacity of pendodos in increasing palm oil productivity. this research uses quality of working life to examine the work quality of pendodos in their work environment. this study was conducted in north labuhan batu regency and south labuhan regency. the data collection method used a qualitative and quantitative descriptive approach through in-depth interviews, questionnaires, observation, and documentation. the informants in this research consisted of community workers and plantation owners. the research results show that people's plantations in this area are still based on trust and social networks. the recruitment of pendodos to work on plantations is based on social networks through kinship and family ties. plantation owners recruit employees to harvest on plantations without special qualifications. a work system not based on a written work contract means no strong work bond between the dodos owner and the plantation owner. this results in no efforts to improve the quality and capabilities of pendodos by garden oil palm plantation owners. a bonded relationship is a mutualistic bond that is mutually beneficial economically. a pendodos income is determined by the quantity of harvest he they produce. the greater the crop, the greater the wages received by the pendodos. keywords: palm oil, pendodos, quality of working life, harvesting. introduction palm oil plantation commodities have bright prospects in the future because the processed products have uniform uses and quite broad market opportunities, both domestically and abroad. processed palm oil products are not only consumed as inputs for the food industry but also for non-food industries and animal feed. palm oil management set up by ownership includes stateowned plantations, private plantations, and even individual plantations owned by the (local) people (febrian & yuza, 2023). in just the past few decades, indonesia has become the world's largest producer of cpo (crude palm oil). in 2022, indonesia produced 45.58 million metric tons of palm oil. indonesia leads the highest amount of palm oil production, followed by malaysia, with total production from these two countries reaching 85% of the total production globally (afriyanti et al., 2016; shigetomi et al., 2020). one process that plays an essential role in producing fresh fruit signs (ffs) is the harvesting process. those involved in the fresh food bunches (ffb) harvesting process, namely picking the fruit so it can be transported for processing, are called pendodos. pendodos carry out the process of harvesting palm oil manually (mohamad et al., 2023; ramli et al., 2023), starting from cutting the fronds, harvesting fresh fruit bunches (ffb) with dodos and egrek, loading the ffb into rickshaws with a tojok (a tool for lifting palm fruit), pushing the rickshaw containing the ffb to the harvest container (tph) and loading the ffb into the transport truck with a sledgehammer (myzabella et al., 2019). this harvesting process is still done manually using traditional tools. several technological tools as ckat and motorised cutter then began to be created to create effectiveness and efficiency in increasing palm oil productivity (bakar et al., 2018). however, some of these tools cannot be used properly because they are not effective enough, workers lack the skills to use them and they endanger worker safety (sugarindra et al., 2017; susana et al., 2024). dodos consists of a knife with a chisel shape at the end, connected to a long pipe. this tool is used to pick palm trees with a tree height of 2-5 meters. fauzi studied plantations in indonesia and stated that traditional tool requires more (christian, 2018) power for workers because cutting ffb is done with a stabbing motion. a study conducted by shokripour and colleagues regarding the manual ffb harvesting process states that traditional harvesting workers must be able to cut fruit bunches and leaves with a tree height of up to 9 meters. the worker must lift the dodos tool and place the tip of the dodos knife into the tree canopy. timeliness and the proper cutting system determine the quality and quantity of fresh oil palm fruit bunches produced. 2 cutting systems are carried out traditionally, namely the system of cutting leaves and bunches, and then the system of bringing the tip of the cutting knife close to the fruit https://www.scopus.com/redirect.uri?url=https://orcid.org/0000-0002-7329-5183&authorid=57200076347&origin=authorprofile&orcid=0000-0002-7329-5183&category=orcidlink mailto:rizabuana@usu.ac.id https://orcid.org/0000-0002-5517-4177 mailto:suwardilubis@yahoo.com https://www.scopus.com/redirect.uri?url=https://orcid.org/0000-0002-4750-9096&authorid=57200069252&origin=authorprofile&orcid=0000-0002-4750-9096&category=orcidlink mailto:ria@usu.ac.id https://www.scopus.com/redirect.uri?url=https://orcid.org/0000-0002-2560-5917&authorid=7402958743&origin=authorprofile&orcid=0000-0002-2560-5917&category=orcidlink mailto:john.mccarthy@anu.edu.au https://orcid.org/0000-0002-9329-1390 mailto:devisihotang93@gmail.com agbioforum, 26(2), 2024 | 20 ismail et al. — working conditions and quality evaluation of pendodos workers in indonesian palm oil plantations: challenges… bunch (hamed shokripour et al., 2012). the quality of the employees’ work makes a significant contribution to increasing productivity. several factors influence the level of performance of workers, such as wages, incentives, motivation, and work environment, training and development (prasasti, 2020; tambunan et al., 2019). motivation, training, and development are the factors that most influence employee performance. the factors affecting employee performance are age, number of dependents, and land conditions (hanisah et al., 2023). nabila (nabila et al., 2019) also noted that age, experience, number of dependents, and income significantly affect workforce productivity of workers. the land topography and the trees’ height cause pendodos to experience difficulties in harvesting, coupled with the use of traditional tools. pendodos experience fatigue when the land’s topography sloping, and the trees become taller. the use of sophisticated technology can be applied done to reduce worker fatigue. pendodos have an essential role in harvesting and increasing palm oil products. therefore, this present research aims to enquire into how to increase the capacity and both the quality work and working life of pendodos in increasing palm oil productivity. literature review quality of working life quality of working life (qwl) is an old concept that emerged in 1970, first introduced by walton. it was designed with a socio-technical system in mind that aims to ensure an optimal work system with working conditions that suit the social and psychological needs of workers (abebe & assemie, 2023; jokinen & heiskanen, 2013). this concept first created concepts and theories regarding "human working life". nowadays, qwl as a concept is attracting more attention globally. this is because in today's modern society, people spend approximately more than a third of their lives at work (herpertz, 2022; lefebvre, 2017). therefore, the importance of qwl for an organization is arguably unmatched and unquestionable (ahmad, 2013; jin, 2022). qwl is also a combination of strategies, procedures, and atmosphere related to the workplace that overall increase and maintain employee satisfaction to improve working conditions for the organization's employees (hammond et al., 2023; leitão et al., 2021). walton (mamaghaniyeh et al., 2019; sabonete et al., 2021) provides 8 categories for assessing and finding qwl, namely: categories of qwl definition adequate and fair compensation related to pay, work situation, responsibilities, and training. other parameters, such as the distribution of profits and results, the relationship between supply and demand, and the average salary of workers, can reflect wage fairness in the organization. other aspects that are additional to this dimension such as fair compensation, salaries commensurate with the results of their work, bonuses as a form of appreciation for work results, and additional costs for food, transportation, medical, etc. for workers (sabonete et al., 2021) safe and healthy working conditions this dimension includes physical conditions, working hours and overtime pay, and work safety, such as personal protective equipment. work situations that do not harm workers while working, such as pollution, noise, and odors are aimed at. in other words, this dimension includes health and the work environment. opportunity to use and develop human capacities; factors relevant to capability development include providing autonomy and recognition of workers' skills and knowledge. workers are given tasks, and then their performance is evaluated. upon the performance assessment (at least if promising), the worker is then given freedom to make decisions. opportunity for growth and security this dimension is related to capacity and knowledge development, opportunities to advance in rank, and the possibility of being expressive and creative with their new knowledge and skills. social integration in the work organisation this dimension is related to the relationships that exist between workers. the absence of prejudice, equality, mobility, relationships, and a sense of togetherness characterises this. transforming interpersonal relationships into both peer and supervisor relationships and staff and colleague commitment is the aim. constitution in the work organisation this dimension is related to the rules that regulate and protect workers in the organization, such as freedom of expression, justice and equality before the law, labor rights, and labor protection. work and total life span this category relates to work's influence on family routines, recreation possibilities, free time, and rest. in other words, the influence on family routines is described as the influence of work on family life. social relevance of work life this is related to a company's (organization’s) image in society associated with production quality; marketing techniques show the quality of workers at work. in this case, pride in getting a job is replaced with pride in working (there) because the company's (organization’s) image is good in society. methodology this study uses a qualitative and quantitative descriptive approach using quality of working life with 8 dimensions, which is applied to the working life of pendodos, one of the range of actors involved in palm oil production. the pendodos in this study are workers working on communityowned plantations in north labuhan batu and south labuhan batu regencies. specifically, the number of respondents which participated in this study was 300 respondents, consisting of pendodos on their own land or other people's land. data collection was carried out using both in-depth interviews and distributing questionnaires to pendodos. data collection was carried out by distributing questionnaires to pendodos. to deepen the data from the results of distributing the questionnaire, in-depth interviews were conducted with 5 pendodos and 5 oil palm plantation owner. data analysis was carried out using the data agbioforum, 26(2), 2024 | 21 ismail et al. — working conditions and quality evaluation of pendodos workers in indonesian palm oil plantations: challenges… triangulation method, namely analysing findings in the field by comparing the results of interview data, observations, previous published research, and other documents related to the focus of the study on quality of working life. result and discussion adequate and fair compensation this category is related to pay and aspects such as work situation, responsibilities, and training. other parameters, such as the distribution of profits and results, the relationship between supply and demand, and the average salary of workers, can reflect wage fairness in the organization. other aspects that are additional to this dimension such as fair compensation, salaries commensurate with the results of their work, bonuses as a form of appreciation for work results, and additional costs for food, transportation, medical, etc. for workers (sabonete et al., 2021). the results of research in the field show the categories of adequate and fair compensation mentioned in table 1 as below: table 1: adequate and fair compensation. no. statements sa a d da sda 1 the salary i receive now is sufficient for my basic daily needs, including those with a family, including wife and children. 22 (4,3%) 116 (38,7%) 14 (4,7%) 88 (29,3%) 30 (20%) 2 the salary i receive now is commensurate with the tasks i do 44 (14,7%) 112 (37,3%) 20 (6,7%) 72 (24%) 52 (17,3%) 3 the salary i receive now is the same as colleagues of the same type as me 62 (20,7%) 202 (67,3%) 8 (2,7%) 26 (8,7%) 2 (0,7) 4 the salary i receive now is according to the responsibilities i have been given and by usual work standards. 32 (10,7%) 150 (50%) 4 (1,3%) 80 (26,7%) 34 (11,3) 5 the welfare assistance i receive from where i work, such as medical treatment, hospital fees, food allowance, transport allowance, personal loans, etc., is satisfactory. 36 (12%) 54 (18%) 12 (4%) 102 (34%) 96 (32%) 6 the bonus i receive at the end of each year or during the holidays is satisfying because it is adjusted to my achievements 46 (15,3%) 160 (53,3%) 18 (6%) 54 (18%) 22 (7,3%) source: data processing in spss, 2023 the first statement concerns whether the salary received by the respondent is sufficient to meet basic daily needs. from the field study, the answers from the respondents were obtained. in this case, the basic needs referred to are daily living, ranging from food to clothing. judging from the majority of responses, respondents appear to agree with the statement above that the wages they receive are sufficient for their daily living needs. some respondents even added that they must be able to manage their salaries to meet their needs (though that in itself does not automatically signal full satisfaction). most of respondents stated that they had to look for other jobs to meet their living needs. apart from working as pendodos, people in this area also have other jobs as cattle breeders. pendodos usually have cattle which is a form of assistance provided by the government through farmer groups. the second statement concerns the salary respondents receive per the tasks they have carried out. this statement seeks to probe the conformity between performance and wages received by pendodos regarding the welfare of workers on oil palm plantations. data from the field shows that most answers given by respondents where the answer option “agree” with a total of 56 people (37.3%) where, according to the workers, the wages they received were based on their work tasks to be performed. however, 26 respondents (17.3%) stated that they strongly disagreed with this statement since they also calculated the work risks and time, they spent grinding palm fruit. the third statement concerns the similarity in the salary received with fellow dodos. data found in the field shows that several respondents stated that the wages for each dodos could differ depending on how much palm fruit the worker could produce. however, unlike pendodos who work as a team, their wages usually will be the same as their teammates. data from the questionnaire results show that pendodos who work at the research location have the same wages as their fellow pendodos teammates, as stated by 101 respondents (67.3%) who agreed and 31 respondents who strongly agreed (20, 7%) with this proposition. in contrast, 13 respondents (8.7%) said they did not agree with this statement, and 1 respondent (0.7%) said they strongly disagreed. this is supported by facts in the field where pendodos can both work as a team and as individuals. in other words, pendodos can be asked to work in the palm oil plantation by the palm oil plantation owner as an individual or a group. the following statement concerns the salary received by the pendodos by the responsibilities and conditions of usual work standards. according to the most significant number of respondents, namely 75 people (50%), who agreed with this statement,, their wages as pendodos were in line with the responsibilities and performance they carried out while doing fruit dodos. the wages received by pendodos vary depending on whether or not they have means of transportation or vehicles. pendodos who own vehicles earn higher wages than pendodos who do not own vehicles. this is because the transportation process is easier if the pendodos have a vehicle. the plantation owner will provide money for oil or transportation for pendodos who have vehicles. usually, the cost of transporting palm oil is idr 200/kilo. as stated by one informant who is a plantation owner in aek pamingke as follows: “… the cost of dodos per kilogram is not the same. in my place, the price hasn't changed for almost 11 years, the price is 200 silver per kilogram. in other places, there are still 150 per kilogram... the fifth statement concerns welfare assistance that pendodos have received while working on the plantation, such as medical treatment, hospital fees, food money, etc. agbioforum, 26(2), 2024 | 22 ismail et al. — working conditions and quality evaluation of pendodos workers in indonesian palm oil plantations: challenges… the most common answer, namely by 51 respondents (34%), disagreed with this statement. this was supplemented by the responses of 48 respondents (32%) who chose the answer option of strongly disagreeing with this statement. based on data from in-depth interviews with one of the pendodos (namely ar, 33 years old and residing in sei tualang village), welfare assistance like this has never been received by pendodos working on privately-owned plantations. it is different if pendodos work at ptpn or other private plantations; pendodos will receive assistance like the statement above. before working as, a pendodos on a people's plantation, the informant (mr ar) had worked on a state-owned plantation. this informant conveyed his experience while working on the ptpn plantation. according to him, workers' training and welfare are given priority, in contrast to workers on people's plantations who receive training activities from the farmer groups they participate in. according to ar, workers are always given financial aid, health, and bonuses because contracts with plantations bind workers. in contrast, workers on privately owned plantations are not bound by agreements and work on different plantations; their chances of receiving such assistance are minimal. however, if a worker experiences a work accident, the plantation owner will help with the worker's medical costs. however, informants admitted that work pressure on government-owned plantations was greater than on community-owned plantations. the sixth statement concerns bonuses received by respondents on big holidays or at the end of the year. based on the most frequent type of answer, respondents returned the answer option “agree”, with the number of respondents being 80 people (53.3%) followed by 23 respondents (15.3%). data obtained from in-depth interviews show that even though pendodos are not bound to work or do not have a work contract with the plantation owner, this does not deny workers the opportunity to receive end-of-year bonuses. as stated by one of the heads of farmer groups who is also a plantation owner as follows (mr lt36 years): "our workers don't have a work contract, because they are only hired during the harvest so there's no need to use a contract. so, there's a possibility that the workers will change, but there are also those who stay and that's the one we employ. it all depends on the quality of work and the trust that exists between us" the solidarity and culture that is still strong in this plantation community, which means that the attitude of sharing with others is still maintained. therefore, it is common for workers to receive year-end bonuses even though they no longer work with the plantation owner. this section shows that there are differences in wages received by pendodos. pendodos who have transportation will get higher wages compared to pendodos who do not have transportation. pendodos have transportation work, from harvesting and transporting fruit to marketing the fruit to the toke. this is different from pendodos, which do not have a means of transportation and only work for harvesting activities. this is what causes the emergence of wage inequality for pendodos. safe and healthy working conditions this dimension includes physical conditions, working hours and overtime pay, work safety such as personal protective equipment. work situations are not meant to harm workers while working, such as by pollution, noise and stink. in other words, this dimension includes health and work environment. the statements regarding this dimension are: table 2: safe and healthy working condition. no. statements sa a d da sda 1 my work environment is safe (not dangerous for my physical and mental safety), comfortable (avoids danger, pollution, and noise and diseases 84 (28%) 152 (50,7%) 26 (8,7%) 28 (9,3%) 10 (3,3%) 2 my workplace has work safety equipment (helmets, gloves, etc.) and work infrastructure (dodos, egrets, etc.) that function well. 14 (4,7%) 64 (21,3%) 18 (6%) 84 (28%) 120 (40%) 3 the plantation where i work is willing to bear all risks due to work accidents, has minimized work accidents, and pays attention to k3 and bpjs (health insurance) 18 (6%) 44 (14,7%) 20 (6,7%) 94 (31,3%) 124 (41,3%) 4 the farm where i work pays attention to the age limits of workers and their safety 14 (4,7%) 28 (9,3%) 2 (0,7%) 86 (28,7%) 170 (56,7%) source: data processing in spss, 2023 the first statement is regarding a safe and comfortable working environment for workers on plantations. data from distributed questionnaires showed that 152 respondents (50.7%) stated that their work environment was safe and comfortable. the majority of plantation environments in aek pamingke village and sei tualang village are plantations owned by the people themselves. several interviews conducted indicated that plantation owners need to provide facilities and infrastructure to protect the safety, comfort, and security of their workers. however, workers admitted that they never used personal protective equipment such as helmets, gloves, glasses, and so on when chopping fruit. as mentioned by suryadi, a harvester (pendodos) from aek pamingke village with 15 years of experience as a dodos, this appears to look as follows: "we never use personal protection like that here. we've been doing dodos for a long time, so we know how to dodos properly so that the thorns don't hit us. … "so, you could say that because we have experience, sometimes wearing personal protection is no longer necessary. even if we want to wear a work helmet, whether we like it or not, we can buy it ourselves using our money ..." related to worker comfort, previous research in palm oil mills in north sumatra also discussed the comfort felt by workers related to the pain experienced after work (henry et al., 2015; sukadarin et al., 2016). palm oil plantation workers agbioforum, 26(2), 2024 | 23 ismail et al. — working conditions and quality evaluation of pendodos workers in indonesian palm oil plantations: challenges… feel pain in the back, waist, neck, hands, etc. this is the impact of the manual use of tools. this kind of pain is indeed experienced by pendodos who work on this people's plantation. however, their long experience makes them feel that this pain is not a problem and they can solve it themselves. in other words, personal protective equipment appears perhaps rather to be the responsibility of each worker, so equipping themselves with personal protective equipment is a task and something that workers must prepare themselves. as informant s mentioned above, he spends his own money to protect himself from dangerous things while working. many respondents considered that working as a dodos is a safe job. not many work accidents occurred while they were working. however, there were still cases of work accidents that occurred among pendodos workers. as mentioned by informant a, his co-worker had experienced a work accident where when he was chopping palm fruit: a palm thorn fell and hit his co-worker in the eye. as a result of this accident, his co-worker was taken to hospital for treatment. another case is a palm fruit falling on the head of a pendodos. another informant, namely a, actually provided differences and views regarding work safety on people's plantations and private plantations as follows: "when it comes to that, it's very different. there is no personal protective equipment in this palm oil plantation whereas we only provide these dodos. it's different from private plantations; my brother used to work on private plantations. everything is given, the salary is big, the bonuses are big, everything comes with it. that's all i often want; the work pressure is high.” from the interview extract above, it can be seen that private and state-owned plantations pay more attention to the safety of their workers when they are working, in contrast to people-owned plantations. this is caused by work contracts, since people's plantations do not have work contracts with their workers, so there is no continuous relationship between workers and plantation owners. the above characterization is related to the following statement regarding the availability of work safety equipment in the workplace. most respondents “strongly disagreed” with this statement (40%), followed by 84 respondents (28%) who “disagreed”. this data further strengthens the fact above that these people's plantations do not provide safety equipment for their workers. only a few of these plantations offer safety equipment for their workers. the unavailability of work safety equipment on people's plantations makes workers increasingly vulnerable to work accidents while crushing palm fruit. pendodos consider that they are professional workers, and work accidents may occur when and when bad luck strikes. so, what if a work accident occurs on a plantation? are the risk owners willing to bear the risks experienced by their workers? based on data obtained from distributed questionnaires, it is known that plantation owners do not want to take the risk of work accidents experienced by pendodos. the final statement from this dimension concerns working age restrictions applied by plantation owners. the data obtained shows that plantation owner set no age limit for workers who work on their plantations. the informants stated that plantation owners on people's plantations in south labuhan batu and north labuhan batu districts did not care about the age of their workers. the plantation owner only looks at a person's ability and performance in crushing palm fruit. if he can, the plantation owner will invite them to work on his plantation. as mentioned in table 2, several respondents in this study revealed that the respondents had worked on plantations for a long time. this shows that some respondents have worked on plantations since they were teenagers. some respondents also stated that they had started working in the palm oil plantation to help their parents when they were young. opportunity to use and develop human capacities this dimension discusses factors relevant to capability development, such as providing autonomy for workers and recognition of workers' skills and knowledge. workers are given tasks and then evaluated on their performance. the performance assessment (if promising at least) is then followed up with the freedom to make decisions. an explanation of this dimension is then described as follows: table 3: opportunity to use and develop human capacities. no. statements sa a d da sda 1. in general, i have the right and influence in making important decisions regarding my work, without having to be influenced by the plantation owner or other superiors 52 (17,3%) 88 (29,3%) 22 (7,3%) 94 (31,3%) 44 (14,7%) 2. i was given the opportunity to make plans and evaluations related to the area i wanted to work on 52 (17,3%) 102 (34%) 14 (4,7%) 96 (32%) 36 (12%) 3. we always have the latest information about work processes and conditions from the palm oil plantation owner 102 (34%) 128 (42,7%) 10 (3,3%) 34 (11,3%) 26 (8,7%) 4. the plantation owner provides sufficient facilities for attending education and job training 14 (4,7%) 6 (2%) 10 (3,3%) 154 (51,3%) 116 (38,7%) 5. i will continue to work as a dodos worker, because i feel satisfied with the tasks given, it turns out they have important meaning for improving my career, knowledge and future. 42 (14%) 96 (32%) 40 (13,3%) 88 (29,3) 34 (11,3%) source: data processing in spss, 2023 the first statement concerns workers' rights to make their own decisions regarding their work independently without any intervention from any party, especially from the plantation owner. the data shows that pendodos do not appear to have the right to make decisions in managing the plantation. the plantation owner decides on all plantation activities. the second statement concerns the opportunity given to workers to make plans and evaluations related to the plantation area they work on. the data in the table above shows that the 102 respondents (34%) representing the most agbioforum, 26(2), 2024 | 24 ismail et al. — working conditions and quality evaluation of pendodos workers in indonesian palm oil plantations: challenges… significant number of respondents stated that they agreed with the opportunity to make plans and evaluations, and this was not much different from the 52 respondents (17.3%) who gave a “strongly agree” answer to this statement. in other words, the pendodos can evaluate the plantation area he is working on. the third statement regards the information provided by the plantation owner regarding the work process and condition of the plantation to the workers. the data obtained regarding this matter is as follows: 128 respondents (42.7%), representing the most significant number of respondents, “agreed” with the availability information in plantation, followed by 102 other respondents (34%) who strongly agreed. the plantation owner informs pendodos and dodos about his plantation area, especially regarding which areas need to be harvested. the fourth statement concerns the provision of facilities / support plantation owners provide to workers participating in job training and education. the most significant number of respondents, namely 154 respondents (51.3%), “disagreed” with, the availability of job training and education in workplace and 116 respondents (38.7%) stated they “strongly disagreed” with the proposition posed. the fifth statement concerns the respondent's views on continuing to work as a teacher and their satisfaction with their job. the standard deviation value of this statement is 1.275, which shows the varied distribution of the data. some workers feel satisfied with their current situation or their situation as a worker, but there are still workers who feel bored with their current job. based on the results of interviews conducted with pendodos, it can be deduced that the work system carried out in these smallholder plantations is different from the work system in either the state or the privately-owned oil palm plantations. the loose work system in people's plantations means workers' job opportunities are nomadic and that they have erratic schedules. pendodos will work if there is a call from the plantation owner to help harvest the palm oil. if there is no call or invitation to work for harvesting (mendodos), then pendodos does not work. therefore, many pendodos look for other jobs, such as raising cattle. this detachment from regular or permanent work causes the working relationship between the dodo’s owner and the plantation owner to be temporary. when pendodos are asked to do dodos, usually their work will be supervised by the palm oil plantation owner or a supervisor appointed by the palm oil plantation owner. this is why pendodos do not have the right or freedom to express their opinions regarding the plantation area they work on. when they work the working relationship that exists is only temporary. every pendodos has the freedom to work in the garden only. however, each pendodos is bound by an oral agreement with the garden owner. pendodos have their schedule in each different garden. for example, every 1st, 11th, 21st, and 31st, pendodos will work in garden a, and every 2nd, 12th, and 22nd work in garden b and so on. therefore, there needs to be training or activities carried out by plantation owners to improve the abilities of their workers. this differs from ptpn or other private plantations, which have specific terms and regulations. workers are given training on how to do dodos correctly and well, and how not damage the palm fruit. after the worker has passed the training, the worker is responsible for harvesting palm fruit. each performance of the pendodos is assessed and evaluated by the plantation. opportunity for growth and security this dimension is related to the development of capacity and knowledge, opportunities to advance in rank and the possibility of being expressive and creative with their new knowledge and skills. the data found related to this dimension are as follows: table 4: opportunity to growth and security. no. statements sa a d da sda 1. the place i work at provides me with the opportunity to improve my knowledge and skills. 36 (12%) 110 (36,7%) 20 (6,7%) 110 (36,7%) 24 (8%) 2. the company leader / work group head / my boss does not waste our work abilities and is responsible for improving our work and making it easy for workers to advance. 44 (14,7%) 114 (38%) 32 (10.7%) 96 (32%) 14 (4,7%) 3. the company leader / work group head / my boss often motivates us to improve and increase the quality of work. 56 (18,7%) 138 (46%) 14 (4,7%) 68 (22,7%) 24 (8%) 4. the company leader / work group head / my boss often urges and directs his team members to develop themselves and advance their careers. 42 (14%) 110 (36,7%) 14 (4,7%) 96 (32%) 38 (12,7%) 5. the company leader / work group head / my boss always reminds us about bpjs, which is helpful for us. 6 (2%) 36 (12%) 6 (2%) 130 (43,3%) 122 (40,7%) 6. i don't need to worry about work safety or traffic/vehicle accidents. 22 (7,3%) 156 (52%) 8 (2,7%) 64 (21,3%) 50 (16,7%) source: data processing in spss, 2023 the first statement for this dimension is with regard to the respective respondent's workplace, in terms of providing opportunities for workers to increase their knowledge and self-independence. the results of the questionnaire data processing show data displayed in the table just above where 110 respondents (36.7%), gave a “disagree” response, and 110 respondents said “agreed”. this data shows that there are the same number of people who respond to this statement. however, the responses that pendodos gave were contradictory. a total of 110 workers said they had increased their knowledge and abilities at work, while another 110 workers said that their knowledge and abilities had not increased at work. further studies were carried out to find out more complex facts in plantation communities. from interview data conducted with mu informants who are treasurers of the farmers' group in aek pamingke, it is agbioforum, 26(2), 2024 | 25 ismail et al. — working conditions and quality evaluation of pendodos workers in indonesian palm oil plantations: challenges… stated that workers gain knowledge and work skills from childhood. the workers acquired this knowledge and ability from their parents when they were invited to work in the gardens from childhood. people are used to plantation activities because it is a hereditary activity. therefore, mu informants stated that the initial knowledge and skills came from the family. however, as time goes on and more plantations are worked on, the workers become more trained and understand the performance on the plantation. the second statement concerns company leaders / work group heads / superiors in terms of whether use their workers' working abilities effectively and actively seek to develop them further. these more senior staff at least in principle or nominally at least are responsible for carrying out work improvement activities and making it easier for workers to advance. from the results of distributed questionnaires, it can be concluded that plantation owners apparently predominantly provide convenience and freedom for their workers to improve their abilities to be even better. the third statement concerns company leaders /work group heads / superiors in terms of how often they motivate their workers to improve their work quality. the data found through data processing of the distributed questionnaires revealed the following: the highest number of respondents, namely 138 respondents (46%), was returned an affirmative answer, which shows that plantation owners do not provide motivation and direction for their workers to improve their performance. this statement emerged as a result of the lack of binding work contracts between the plantation owners and workers. this is a characteristic of the people's plantations in labuhan batu and north labuhan batu. the relationship that occurs between workers and plantation owners is an economic relationship to improve their economy and not the productivity of the harvest. apart from that, evaluation activities on employee performance should be carried out so there is no effort to increase and improve the performance of the pendodos. the fourth statement concerns company leaders / heads of work groups / superiors, in terms of how often they urge and direct their team members to develop themselves and advance their careers. the data processing revealed that most respondents' answers were in the “agree” answer option, with 110 respondents (36.7%). this data shows that plantation owners tend to support workers who want to develop their careers, especially if they plan to look for other work. the fifth statement regards whether company leaders / work group heads / superiors always remind their workers about bpjs, which benefits them. 130 respondents (43.3%) gave “disagree” answers, followed by 122 respondents (40.7%) who “strongly disagreed” with this statement. based on this data, it can be concluded that the superiors, including plantation owners, hardly ever remember to do this and do not intervene regarding the bpjs used or owned by his workers. conceptually, the relationship between workers and superior’s / plantation owners could be described as a patron-client relationship or a symbiotic relationship of mutualism that should mutually benefit each other. workers work in plantations to earn wages, and plantation owners need workers to manage and harvest their plantation products. the workers who work on this plantation are nomadic or move around, giving each worker a different experience. some workers who have established strong social relationships with plantation owners will talk about matters related to bpjs, but most workers never talk about bpjs. and their superiors do not seem to correct this. the sixth statement concerns whether workers worry about work safety or traffic/vehicle accidents. the standard deviation value for this statement is 1.298. based on the data found in table 4, it is known that 156 respondents (52%) stated that they did not feel worried about safety during work. the experience they have over the years adds to workers' confidence that they are used to and can deal with work accidents that might occur. when they have an accident at work, they just assume that they were just unlucky that day social integration in the work organization this dimension is related to the relationships that exist between workers. it is probing into the absence or presence of prejudice, equality, mobility, relationships and a sense of togetherness describes this. transforming interpersonal relationships into peer and supervisor relationships and staff and colleague commitment is desirable. the obtained data for this dimension is as follows: table 5: social integration in the work organization. no. statements sa a d da sda 1. in terms of fellow workers, we do not have feelings of envy, prejudice and social discrimination. 128 (42,7%) 144 (48%) 10 (3,3%) 10 (3,3%) 8 (2,7%) 2. even though there are differences between superiors and subordinates, we are still close, and superiors do not look down on us and are willing to work with us. 144 (48%) 144 (48%) 4 (1,3%) 6 (2%) 2 (0,7%) 3. the working relationship between harvest workers is good, and they respect each other's feelings. 146 (48,7%) 150 (50%) 4 (1,3%) 0 0 4. my co-workers care about the difficulties i face. 120 (40%) 152 (50,7%) 16 (5,3%) 10 (3,3%) 2 (0,7%) 5. i feel like i am part of the work group in the garden i work on. 132 (44%) 156 (52%) 12 (4%) 0 0 6. i have the opportunity to be appointed as an employee at the plantation where i work, considering my experience and work performance. 16 (5,3%) 32 (10,7%) 16 (5,3%) 128 (42,7%) 108 (36%) source: data processing in spss, 2023 the first statement regarding fellow workers posits that workers do not have feelings of envy, prejudice and social discrimination. 144 respondents (48%) “agreed” with this, and 128 respondents (42.7%) stated that they “strongly agreed” with this statement. this suggests that workers on this plantation still uphold family values and solidarity among themselves. the second statement is, "even though there are differences between superiors and subordinates, agbioforum, 26(2), 2024 | 26 ismail et al. — working conditions and quality evaluation of pendodos workers in indonesian palm oil plantations: challenges… workers remain close, and superiors do not look down on them and are willing to cooperate with workers”. the standard deviation value for this statement is 0.685, with the data distribution as follows: the most frequent type of response was in the “agree” and “strongly agree” answer choices, each with 144 (48%). the third statement proposed that the working relationship between harvesting (men dodos) workers is good, and that they respect each other's feelings. data in the field showed that 150 respondents (50%) gave an “agree” response, followed by 146 respondents (48.7%) who “strongly agreed” with this statement. one can conclude from this that the relationship that occurs between workers on people's plantations is good, and that they care for each other's feelings. solidarity between plantation workers appears to be still well established by the characteristics found of plantations located in rural areas. the fourth statement concerns the material presence of initiatives to help work partners experiencing difficulties. the standard deviation value for this statement is 0.762. 152 respondents (50.7%) gave an “agree” answer to this statement, followed by 120 respondents (40%) who gave a “strongly agree” response. the fifth statement concerns whether workers were feeling part of the workgroup on the plantation. the standard deviation value for this statement is 0.567, with the most frequent answer, by 156 respondents (52%), was affirmative of this. the sixth statement concerns the opportunities that workers have to be appointed as employees on the plantation where they work, based on the worker's experience and work performance. “disagree” with that that they were afforded those was the answer choice most often chosen by respondents with 128 respondents (42.7%), followed by 108 other respondents (36%) who “strongly disagreed” with this statement. on the other hand, 32o respondents (10.7%) gave an “agree” answer, and 16 respondents (5.3%) “strongly agreed” with this statement. in contrast, 16 respondents (5.3%) hesitated to answer this statement. the standard deviation for this statement is 1.149. constitutionalism in the work organization this dimension is related to the rules that regulate and protect workers in the organization. such as freedom of expression, justice and equality before the law, labour rights and labour protection. table 6: constitutionalism in the work organization. no. statements sa a d da sda 1. i am satisfied with my rights and freedom to express my opinions at work. 62 (20,7%) 176 (58,7%) 22 (7,3%) 38 (12,7%) 2 (0,7%) 2. i am satisfied with the services of the company / organization where i work in handling matters relating to the interests and rights of workers. 42 (14%) 118 (39,3%) 40 (13,3%) 86 (28,7%) 14 (4,7%) 3. leaders demonstrate an open and understanding attitude towards differences of opinion in open communication regarding employee duties. 66 (22%) 178 (59,3%) 14 (4,7%) 38 (12,7%) 4 (1,3%) 4. there are elements of corruption, collusion, nepotism and red tape in the division of labour in the field/plantation. 18 (6%) 24 (8%) 18 (6%) 144 (48%) 96 (32%) source: data processing in spss, 2023 the first statement concerns whether workers are satisfied with their personal rights and freedom to express opinions at work. from the data in the table just above based on the field results obtained, it can be seen that 176 respondents (58.7%) “agreed” that they were satisfied in this regard, followed by 62 respondents (20.7%) who gave “strongly agree” response. it can be concluded therefore that most workers who work on people's plantations feel free to express their opinions regarding their work to the plantation owners. an interview informant confirmed that freedom of opinion was given by the plantation owner regarding the work process that the workers would carry out. the informant mr mu gave his statement regarding workers' freedom to express their opinions: "it all depends on the owner of the garden. there are garden owners who are willing to accept input or suggestions from the workers but there are also those who don't accept it. it's true that the ones who know the situation of the garden are the workers so there's actually no harm in listening to what the workers have to say. in the end the decision is taken by the garden owner" however, this does not mean that the plantation owner follows all opinions expressed by workers. workers only provide opinions or solutions related to the field of work they are part of, and even that may or may not be actioned upon. the second statement concerns workers whether are satisfied with the company's services, especially in handling matters relating to workers' interests and rights. from the data in the table above, it appears that most respondents were satisfied with the services provided by plantation owners in handling their interests and rights as workers since118 respondents (39.3%) who “agreed” with this statement, followed by 42 respondents (14%) who “strongly agreed”. however, some pendodos feel dissatisfied or even dissatisfied with the services provided by plantation owners regarding their interests and rights since 86 respondents (28.7%) “disagreed” with the proposition and 14 respondents (4.7%) “strongly disagreed”. 40 respondents (13.3%) were hesitant to answer regarding this statement. the third statement concerns whether leaders demonstrate an open and understanding attitude towards how to handle differences of opinion regarding employee duties. the field data shows that respondents gained experience working with palm oil plantation owners with palm oil plantation owners who have an open and communicative attitude concerning their division of tasks. the most frequent t response, that is by178 respondents (59.35%), chose answer option “agree”, followed by 66 respondents (22%) who “strongly agreed” with the agbioforum, 26(2), 2024 | 27 ismail et al. — working conditions and quality evaluation of pendodos workers in indonesian palm oil plantations: challenges… positive proposition. a smaller number of relatively respondents had experience working with palm oil plantation owners who needed to be more communicative and open with dodos, as can be seen from 38 respondents (12.7%) who disagreed, followed by 4 respondents who strongly disagreed. the fourth statement concerns elements of kkn and red tape that occur in the division of labour in the field/ palm oil plantation the data returned by respondents appears to shows no experience from the pendodos regarding kkn (corruption, collusion and nepotism) activities in the division of labour on the plantations where they work. this is represented by 144 respondents (48%) who gave a “disagree” answer to this statement proposing an existence of kkn / red tape, followed by 96 respondents (32%) who gave a “strongly disagree” answer. this differs from 24 respondents (8%) who gave an “agree”-response and 18 respondents (6%) who “strongly agreed” with the statement put to them. seemingly, pendodos still have experience with kkn and red tape activities in the division of labour on the plantation, although this appears to occur only to a small extent. work and total life space this dimension relates to the influence of work on family routines, recreation possibilities, free time and rest. in other words, the influence on family routines is described as the influence of work on family life. table 7: work and total life space. no. statements sa a d da sda 1. i am satisfied with my current job because i still have time for family matters and events with my neighbours. 178 (59,3%) 114 (38%) 6 (2%) 2 (0,7%) 0 2. after finishing work, i am still strong enough to carry out activities outside of routine work, such as pursuing hobbies, chatting with friends or neighbours, exercising, attending community/family events, etc. 182 (60,7%) 104 (34,7%) 6 (2%) 6 (2%) 2 (0,7%) 3. there is no high work pressure when carrying out work, such as too heavy a load, often exceeding work time limits, insufficient rest time, etc. 138 (46%) 136 (45,3%) 8 (2,7%) 14 (4,7%) 4 (1,3%) 4. i am satisfied that i can carry out various other jobs freely without disturbing my routine work and work responsibilities. 162 (54%) 132 (44%) 4 (1,3%) 2 (0,7%) 0 5. the quality of my daily life outside of work hours, is fun and joyful and fulfilling. 158 (52,7%) 138 (46%) 0 4 (1,3%) 0 source: data processing in spss, 2023 the first statement is about pendodos in terms of whether they feel satisfied with their current job, due to still having time for family matters and events with neighbours. the standard deviation value of responses to this statement is 0.572. based on the data in the table, it can be seen that workers on people's plantations in this location (labuhan batu and north labuhan batu) are satisfied with the work they are currently doing as a 'pendodos'. respondents felt that with their work as pendodos they still had free time to attend family events or quality time with their family. this is in accordance with the predominant pattern in respondents' answers choosing the response option “strongly agree” with 178 respondents (59.3%), followed by 114 respondents (38%) who gave an “agree” return. working as a dodo’s worker is a seasonal job where workers are only needed when the harvest season arrives. if the harvest season has not yet arrived or is over, pendodos do not have work; therefore, the field data confirmed that pendodos in this area have other jobs in order to support the family and household needs. the second statement regarding the activities carried out by pendodos after finishing work, and probes into whether pendodos think they are still strong enough to carry out activities outside of routine work such as pursuing hobbies, chatting with friends or neighbours, exercising, attending community/family events, etc. based on the obtained field data above, it appears that pendodos consider that they are still able to carry out other activities outside of their routine work as stated by 182 respondents (60.7%) who “” strongly agreed with this proposition. furthermore, 104 respondents (34.7%) also gave affirmative (“agree”) responses to this statement. the third statement concerns the posited absence of high work pressure when carrying out work, such as burdens that are too heavy, often exceeding work time limits, not enough rest time, etc. the majority of respondents in this study indicated did not have a high work pressure when doing their work, as stated by 138 respondents (46%) who chose “strongly agree” answer, and 136 respondents (45.3%) who gave also gave an affirmative answer (“agree”) to this statement. in contrast to this, 14 respondents (4.7%) stated that they had work experience with a high pressure by choosing the “disagree” response option to this statement. working hours are only carried out during the palm harvest season, causing pendodos not to have high work pressure all the time from this occupation. the fourth statement concerns worker satisfaction in carrying out various other jobs freely without disturbing their routine work and job responsibilities. the field data obtained shows that overwhelmingly pendodos appear to be satisfied with the other work they do because it seemingly does not interfere with their routine work. this was indicated by 162 respondents (54%) who gave a “strongly agree” answer to this statement and by 132 respondents (44%) who gave an affirmative (“agree”) answer to this statement. the fifth statement is regarding the quality of workers’ daily life outside working hours in terms of being fun, agbioforum, 26(2), 2024 | 28 ismail et al. — working conditions and quality evaluation of pendodos workers in indonesian palm oil plantations: challenges… joyful and satisfying. the standard deviation for this statement is 0.575. from the data above it appears that workers have a pleasant and joyful quality of life. this means that workers do not experience depression or stress after doing their work. this was indicated by 158 respondents (52.7%) opting for the answer choice “strongly agree”, followed by 138 respondents (46%) with an “agree” return to this statement. the social relevance of work life this is related to the company's image in society related to production quality and marketing techniques for fronting the quality of worker’s experience at and in relation to work. in this case, pride in getting a job is replaced with pride in working because a company's image is good in society. table 8: the social relevance of work life. no. statements sa a d da sda 1. the plantation where i work always pays attention to positive social activities for workers such as independence day, recreation for the family, halal bil halal, etc. 42 (14%) 90 (30%) 16 (5,3%) 96 (32%) 56 (18,7%) 2. i feel that in the palm oil plantation where i work there is attention to environmental sustainability or attention to people affected by calamities/disasters such as: floods, earthquakes and so on. 42 (14%) 106 (35,3%) 24 (8%) 92 (30,7%) 36 (12%) 3. the palm oil plantation where i work takes part in advancing national education, such as helping to provide scholarships for workers' children, training for good harvests, training in determining good fruit for harvest, etc. 8 (2,7%) 16 (5,3%) 12 (4%) 108 (36%) 156 (52%) 4. donations that are not directly related to plantation operations should still be made, such as: apparatus costs, mass organization costs, etc. 12 (4%) 22 (7,3%) 14 (4,7%) 94 (31,3%) 158 (52,7%) 5. farm owners need to be involved in maintaining the morale of their workers 6 (2%) 16 (5,3%) 6 (2%) 116 (38,7%) 156 (52%) source: data processing in spss, 2023 the first statement regarding the palm oil plantation where it is postulated in the testing statement that the pendodos’s work environment also always focuses on positive social activities for workers, such as independence day, recreation for the family, halal bil halal, etc. from the field data obtained, it can be seen that respondents gave varied answers to this statement with similar frequency across answer options provided to them. the standard deviation value for this statement is 1.386. several respondents had experiences where the plantation where they worked paid attention to positive social activities for their workers, as mentioned by 90 respondents (30%) who gave an affirmative (“agree”) answer, followed by 42 respondents (14%) who “strongly agreed” to this statement. however, other respondents indicated that the plantation where they work does not pay attention to social activities for or of their workers, as stated by 96 respondents (32%) who “disagreed” with this statement and 56 respondents (18.7%) “strongly disagreed” with this statement. meanwhile, 16 respondents (5.3%) stated that social activities carried out by plantation owners were only carried out occasionally and not routinely. therefore, these respondents gave a hesitant response to this statement. the second statement is regarding as to whether the palm oil plantation where pendodos work pays attention to environmental sustainability or to communities affected by disasters such as floods and earthquakes and is beneficial. the answers from respondents obtained was varied, with similar frequencies across different options provided. the standard deviation for this statement is 1.303. it appears that several palm oil plantations where pendodos work pay attention to preserving the environment or communities experiencing disasters. this was stated by 106 respondents (35.3%) who gave an “agree” answer to this statement, followed by 42 respondents (14%) who “strongly agreed”. the third statement concerns the palm oil plantation where pendodos work, advancing national education such as by helping to provide scholarships for workers' children, training pendodos for good harvests, training pendodosin determining what would constitute a good fruit for harvest, etc. the standard deviation value for this statement is 0.965. based on the data in table 8 above, it is known that as many as 108 workers or 36% of workers did not receive educational or training assistance from the plantation where they lived. it can be concluded from the field responses that the plantation where the pendodos work does not advance national education, especially in providing educational assistance to the workers' children or in activities to improve the workers' skills. the fourth statement is regarding donations not directly related to plantation operations which arguably should still be made for, apparatus costs, mass organization costs, etc. respondents gave varied answers to this statement, with a standard deviation value for this statement of 1,089. from the field data obtained, it seems that respondents “disagree” that donations that are not directly related to plantation operations are made by the plantation owners. the fifth statement concerns moral enforcement among workers, in terms of whether it needs to be interfered with by plantation owners. from the field data, i can be surmised that upholding morals among workers does not need to be interfered with by plantation owners in the workers’ view. one informant, mr. a, even stated that moral matters are a person's rights or privacy and do not need to be interfered with by the plantation owner. informant a's statement is contained in the following interview excerpt: "in my opinion, moral matters return to each individual's business and do not need to be taken care of by the plantation owner. this means that moral matters are agbioforum, 26(2), 2024 | 29 ismail et al. — working conditions and quality evaluation of pendodos workers in indonesian palm oil plantations: challenges… different from work matters. moral matters are personal matters and do not need to be managed by other people, but if it is a family matter we can still accept it" people's plantations can be said to be independent plantations. the community, namely as the owner of the plantation, manages the plantation from planting to harvesting without any intervention from other parties. they try to solve the problems faced by plantation owners by asking for help from farmer groups in their area. next, the farmer group tries to find a solution that is felt by the plantation owner. one of the problems faced by plantation owners is the falling price of palm fruit which affects workers' income and wages. low income will affect plantation productivity. this is due to the ability of the garden owner to buy fertilizer. it is not uncommon for garden owners to reduce the intensity of fertilization for their land from 1 year to 4 times to 1 year to 3 times fertilization. if the plantation owner cannot afford fertilizer, then the palm oil is not fertilized. the existence of farmer groups is also unable to help plantation owners overcome the ease of access to obtain fertilizer. this is because there is no schedule or information regarding when subsidized fertilizer from the government will be provided. to get cheaper fertilizer prices, plantation owners still depend on subsidized fertilizer provided by the government. this is different from harianto (harianto, 2019), who saw that the fall in palm oil prices had a positive impact on plantations with other types of crops. according to him, with the fall in palm oil prices, farmers will switch to planting other crops such as rubber, cocoa and coffee. however, for people in smallholder plantations it is no longer possible to change the type of crop, especially rubber. this is because this plantation is a transition from rubber plantations. as a result of the low price of rubber and its economic unprofitability, people in this area changed their crops to oil palm. when people start planting oil palm, the community's economy begins to improve and become more prosperous. conclusion pendodos who work on people's plantations have the task of harvesting, transporting and selling the harvest. pendodos in those settings have no contractual relationship with the plantation owner, so during harvest, pendodos can work on 2 or 3 plantation areas at once. this source of a likely lack of engagement between workers and plantation owners with types of plantations owned by the community means that there are no efforts to increase skills and training activities carried out by plantation owners. the lack of written attachment between the pendodos and the plantation owner means that the pendodos cannot intervene on the plantation land. this is different from state-owned and private plantations which often provide training to their workers. training activities carried out include maintenance processes, harvesting, safety training and so on. in other words, increasing the productivity of palm oil products does not involve the pendodos and is not the task of the pendodos. plantation owners have made various efforts to increase their palm oil productivity. however, palm oil plantation owners need help with getting quality fertilizer and seeds. falling palm oil prices are also a crucial problem for plantation owners. if palm oil prices continue to fall, it will become increasingly difficult for plantation owners to buy fertilizer. it is concluded that the existence of farmer groups cannot help plantation owners overcome the ease of access to obtain fertilizer. this is because there is no schedule or information regarding when subsidized fertilizer from the government will be provided. the community in labuhan batu has experienced economic improvements since switching from rubber plantations to oil palm plantations. however, efforts are still needed to increase palm oil productivity to have implications for improving the livelihoods of workers and their households / families. based on the data above, it can be concluded that pendodos's quality of working life is still low. quality of working life does not even affect plantation productivity. acknowledgement the author would like to thank the universitas sumatera utara and lembaga penelitian universitas sumatera utara 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https://orcid.org/0009-0008-5681-1482 email: richa.mishra@bmu.edu.in hala alsabatin assistant professor, college of education, zarqa university, zarqa, jordan. orcid id: https://orcid.org/0009-0002-9779-1007 email: halsabatin@zu.edu.jo shweta upamanyu corporate learning & development manager, bluedove hospitality pvt. ltd., bengaluru, karnataka, india. orcid id: https://orcid.org/0000-0003-2727-0273 email: s.upamanyu@gmail.com jolly masih associate professor, school of management, bml munjal university, gurugram, haryana, india. orcid id: https://orcid.org/0000-0002-8420-1517 email: jolly.masih@bmu.edu.in azzam hannoon associate professor, school of business, skyline university college, university citysharjahuae. email: azzam.hannoon@skylineuniversity.ac.ae sherine badawi assistant professor of management, faculty of economics and international trade, egyptian chinese university. sameh reyad professor of accounting, faculty of business administration department of finance, banking and accounting, german international university (giu), egypt. yussra jamjoom associate professor, college of business administration, university of business and technology, jeddah, 21448, saudi arabia. email: yussra@ubt.edu.sa orcid id: https://orcid.org/0000-0003-2600-5558 this study investigates the relationship between marital status, workplace environment, and mental health among employees in the delhi national capital region service-oriented industries. the empirical examination also explores that workload and job stress, work-life balance, organizational culture and workplace environment also make an impact on mental health. the research combines mixed methods through questionnaires from 200 respondents who participated in stratified random sampling and qualitative components to achieve better contextual understanding. the study validates that excessive workload and insufficient work-life integration combined with weak organizational care drive persistent mental health deterioration for employees. the research data revealed that unmarried workers showed higher psychological strain than their married colleagues across all study groups. factor analysis tests demonstrated that the constructs had excellent reliability and validity characteristics since key dimensions describe mental health outcome variability. workplace environment proves to be a major determinant of employee well-being. the findings have been evaluated by using anova and it affects these results most notably when married status is considered. employers must adopt specific organizational initiatives that enhance mental health support because this analysis demonstrates widespread employee needs. the study extends current opinions about occupational mental health by providing detailed information about how family connections and workplace environments affect employee mental health within demanding service roles. keywords: mental health issues, employees, workplace, service-based industries, marital status, occupational stress, employee well-being. introduction recently, the discourse surrounding mental health in the workplace has gained considerable attention, shedding light on the multifaceted challenges faced by individuals across various sectors—particularly within serviceoriented industries that emphasise efficiency, productivity, and customer satisfaction. this study aims to explore the factors contributing to the increasing prevalence of mental health issues among employees in service industries, providing a comprehensive understanding of the complexities of this pressing issue by examining the conditions that impact psychological well-being in the work environment. the subject of mental health in the workplace has attracted significant interest due to its profound effect on individual welfare, productivity, and organisational performance. psychological disorders such as stress, anxiety, depression, and burnout not only affect individuals but also influence the overall functioning of businesses, potentially resulting in reduced productivity, higher absenteeism, and diminished morale. as noted by wang et al. (2022), "marital status, often overlooked, plays a critical role in shaping the mental health of employees in service-based industries. understanding this connection is essential for creating workplaces that not only foster productivity but also nurture well-being." the primary factors contributing to the increasing prevalence of mental health issues among individuals in service-based sectors are excessive workloads and heightened levels of pressure. employees within these industries frequently face significant time constraints, stringent deadlines, and a relentless influx of customer demands. for married workers, the challenge of https://orcid.org/0009-0008-5681-1482 mailto:richa.mishra@bmu.edu.in https://orcid.org/0009-0002-9779-1007 mailto:halsabatin@zu.edu.jo https://orcid.org/0000-0003-2727-0273 mailto:s.upamanyu@gmail.com https://orcid.org/0000-0002-8420-1517 mailto:jolly.masih@bmu.edu.in mailto:azzam.hannoon@skylineuniversity.ac.ae mailto:yussra@ubt.edu.sa https://orcid.org/0000-0003-2600-5558 agbioforum, 26(3), 2024 | 84 mishra et al. — exploring the impact of marital status and workplace environment on mental health among employees… balancing dual responsibilities—professional duties and domestic obligations—can result in either emotional stability or heightened stress, contingent upon the presence or absence of interpersonal conflicts (womack & jones, 2005). divorced or separated employees, on the other hand, experience unique emotional and financial strains, which exert a considerable impact on their psychological well-being. employed parents encounter additional responsibilities and complexities in time management, leading to increased stress levels. furthermore, organisational factors exacerbate the issue, including inadequate support systems, limited access to mental health resources, and the persistent stigma associated with mental health conditions (eisenberger, malone, & presson, 2016). marital status represents a significant yet frequently overlooked social determinant that substantially influences the mental well-being of employees. individuals who lack access to robust social support networks may experience heightened levels of stress and feelings of isolation (cattani & rizza, 2024). in contrast, married employees are often required to balance dual responsibilities encompassing both their personal and professional lives. this dual role may either facilitate the resolution of familial matters or, conversely, exacerbate existing anxieties. additionally, divorce or separation from a spouse can have profound detrimental effects on an employee’s emotional stability, further underscoring the critical role of marital status in shaping mental health outcomes. a 2022 study conducted by the national institute of mental health and neuro-sciences (nimhans) in bengaluru explored the relationship between marital status and mental health challenges among information technology (it) professionals, revealing a significant correlation. the study, which included a sample of 500 employees, found that unmarried individuals experienced higher levels of anxiety and stress, primarily due to the lack of a supportive domestic environment and concerns regarding job security. in contrast, married employees faced stress arising from the dual demands of managing both work and family responsibilities. however, they reported improved mental well-being when receiving adequate support from their spouses. these findings highlight the need for tailored mental health interventions that address the distinct pressures associated with varying marital statuses, thereby fostering the overall well-being of employees (anand, 2024). individuals with children are more susceptible to stress due to the heightened demands of balancing professional responsibilities and domestic duties, often leading to fatigue exacerbated by a lack of empathy and the burden of emotional labour. employees in service-based sectors frequently engage in "emotional labour," which involves the regulation and outward expression of emotions (grundström et al., 2021). this can be particularly mentally taxing, as it requires maintaining composure in challenging situations or demonstrating empathy towards clients. additionally, these individuals often face unstable employment conditions and precarious work arrangements. concerns over job security and unpredictable schedules are prevalent among workers in service-oriented industries, contributing to elevated levels of anxiety and stress. sectors such as customer service and hospitality are characterised by a high prevalence of contract work, zero-hour contracts, and the growing influence of the "gig economy." these factors foster uncertainty among workers regarding job stability, fringe benefits, and financial security (ozduran et al., 2023). the study aims to explore the interplay between these factors and marital status to achieve a comprehensive understanding of how different marital statuses influence the mental well-being of individuals employed in servicebased industries. through an extensive review of contemporary literature and systematic data collection, the research seeks to identify the primary stressors prevalent within these sectors. additionally, the study endeavours to elucidate the impact of marital status on psychological health outcomes when considered alongside these stressors. by doing so, it aspires to provide employers with valuable insights into enhancing employee well-being and satisfaction, as well as fostering a supportive work environment that addresses their diverse needs. the identification of these relationships is intended to assist organisations and policymakers in designing tailored support systems capable of effectively addressing mental health challenges and promoting a healthier, more inclusive workplace. furthermore, the study contributes to the broader discourse on the relationship between marital status and mental well-being in service-oriented sectors. it also seeks to inform researchers in developing targeted interventions aimed at improving workplace conditions and advancing the overall well-being of employees. literature review this section of the study includes assessments of related previous studies that have been carried out to help comprehend the current state of the topic. for clarity, the section has been split into three categories. marital status and the prevalence of mental health issues among employees torres, backstrom, & duffy (2023) examined the factors associated with mental health burdens in two distinct groups of workers. the first group consisted of individuals employed in critical sectors who remained active during the pandemic, including healthcare, military, commerce, finance, and media. the second group comprised workers significantly impacted by protective measures, either operating under altered work arrangements or unable to work at all. sopa et al. (2020) found that workers who perceive support from their employers—whether in the form of rewards, favourable working conditions, or encouragement from superiors—are more likely to remain employed with the organisation (ahmedani, 2011). similarly, sumarsi & rizal (2021) observed that employees tend to exhibit greater dedication when they perceive that the organisation aligns with their standards, desires, and expectations. in this context, chiu, wai‐mei agbioforum, 26(3), 2024 | 85 mishra et al. — exploring the impact of marital status and workplace environment on mental health among employees… luk, & li‐ping tang (2002) identified that when workers are able to operate comfortably and conveniently within the organisation, their commitment to staying is strengthened, and they experience a sense of alignment with the organisation's core values. factors specific to workplace stressors on the mental health of employees with different marital statuses vaingankar et al. (2020) examined the specific factors related to workplace stress and their impact on the mental health of employees with varying marital statuses. the study explored the links between married life and psychological disorders, considering the potential influence of social support, trust, and financial constraints. similarly, hossain et al. (2021) found that employees who were single, divorced, or widowed were significantly more likely to experience poor mental health compared to those who were married or living with a partner. these higher odds ratios remained consistent across studies, with trust and financial difficulties only slightly weakening the associations. a further study by bayrakçeken, alkan, & abar (2023) emphasized that mental health can be defined as the ability to maintain positive and balanced relationships, adapt to personal and social environments, and effectively resolve conflicts and personal aspirations in a rational, fair, and appropriate manner. according to sopa et al. (2020), the marital history of working women significantly influenced their mental well-being. the complex stress experienced by married working women, who juggle responsibilities in multiple areas, may contribute to their diminished mental health (abadi, dirani, & rezaei, 2022). optimal allocation of counselling time and regular meditation were identified as effective strategies for enhancing mental well-being. finally, parker & jorritsma (2021) noted the widespread presence of significant psychological distress across all categories of employees, a concern that is often unaddressed. identifying risk factors should guide the development of behavioural health interventions, prevention, and assessment initiatives. factors contributing to the correlation between married and unmarried employees according to hämmig, gutzwiller, & bauer (2009), married women, in particular, exhibited a degree of atypical deviation in both types of aberrant activities. for women, the dissolution of marriage was more strongly linked to indicators of sadness, while men were more prone to displaying unhealthy drinking habits and behavioural issues. in contrast, the transition from "unmarried" to "married" marital status did not appear to have a significant association with the respondents' mental health. abas et al. (2024) suggested that these differences may be attributed to the emotional and socialisation experiences of men and women, which make individuals more susceptible to responding to stress throughout their lives. further research has shown that married individuals are less likely to engage in criminal activities (baek et al., 2024) and are less vulnerable to aberrant behaviour (rony, md. numan, & alamgir, 2023) compared to their unmarried counterparts. vorina, simonič, & vlasova (2017) also reported notable differences in the prevalence of depression, anxiety, and stress between married and unmarried employees. workplace environment and mental health workload and job stress service industry employees currently face their worst psychological challenges from carrying excessive workloads at work. work pressure causing sustained jobrelated stress makes workers develop depression alongside anxiety (chen et al., 2022). the covid-19 frontline workers experienced heightened stress because they faced greater workloads and safety risks (frenkel et al., 2022). job demands direct emotional exhaustion as per structural equation modelling analysis by yulita, idris, & dollard (2022) with a β value of 0.47 (*p* < 0.001) in roles with continuous customer interactions. the qualitative nature of the workload also matters. shirmohammadi, chan au, & beigi (2022) established that staff dealing with demanding skills tasks that required managing complex client needs showed greater psychological distress compared to workers with quantitative restrictions. service employees in the delhi national capital region reported "unmanageable expectations" as their primary stressor with a 38% frequency, which caused their burnout numbers to rise. work-life balance remote work technologies have intensified mental health risks because they create complete dissipation of personal boundaries within professional contexts. service sector employees face work-life conflict to an extent 67% higher than workers in other occupational fields (borowiec & drygas, 2023). the pandemic produced extended working hours and impaired recovery time due to boundary blurring which caused sleep disturbances affecting 78% of employees (shirmohammadi et al., 2022). work flexibility with telecommuting provides advantages to employees but needs organization-wide support systems to prevent workplace conflicts (bhat, yousuf, & saba, 2023). this relationship becomes more complex when married employees are involved. workers who are married and care for others experience greater role conflict in their professional lives. the implementation of familysupportive supervisor behaviours (fssb) by susanto et al. (2022) resulted in a decrease in work-life strain for married workers, equivalent to 23%. organizational culture and support an organization needs a supportive culture to minimize workplace stressors. research has established that environments which offer employees psychological safety lead to reduced mental health problems such as depression and anxiety (sun et al., 2023). healthcare personnel working in psychologically safe settings displayed 34% reduced mental health symptom levels agbioforum, 26(3), 2024 | 86 mishra et al. — exploring the impact of marital status and workplace environment on mental health among employees… while dealing with covid-19 (frenkel et al., 2022). the combination of toxic organizational cultures infused with inadequate communication and little integrity increases employee stress most strongly for unmarried people since they lack dependable outside support networks (aarons & sawitzky, 2006; dishop et al., 2019). the effects of transformational leadership serve as a heightening mechanism in these situations. organizations operate more resiliently under leadership focused on empathy and communication because these management styles create teams with 19% fewer employees considering leaving (yulita et al., 2022). the research results demonstrate why organizations should establish mandatory mental health training programs for supervisors while running stigma projects across departments. marital status and mental health outcomes the resources obtained through marriage effectively protect workers against workplace stress. during the covid-19 era, healthcare professionals who were married showed lower levels of anxiety compared to their single counterparts by 18% (peng et al., 2022). married personnel working in managerial positions exhibited greater job satisfaction through their shared domestic obligations (borowiec & drygas, 2023). however, marital quality matters. individuals in dysfunctional marriages face more severe mental health problems than both widows and widowers because ongoing marital strife overrides the positive aspects of being in a relationship. the changes in life status through death or separation create significant threats because new single employees experience depressive symptoms that increase by 27%. married workers experience simultaneous stressors arising from their workplace requirements and household responsibilities. indian mental health professionals reported that marriage and demanding work schedules caused 62% of their workers to experience chronic fatigue (savarimalai et al., 2023). single workers without family responsibilities experienced increased loneliness levels that heightened their stress (ali, 2022). two distinct policies are required to address current disparities between married and single workers: marital status-adjusted childcare assistance programs for employees with spouses, along with social support initiatives for single staff members. interplay between workplace environment and marital status workplace factors show diverse relationships with the marital status of individuals. high-stress workplace situations increase anxiety development risks by 41% for unmarried workers based on their lack of spousal support for managing job demands (peng et al., 2022). married workers operating in organizations with unsupportive cultures experience intensified work-family conflict because 55% point to inflexible shift scheduling as the main obstacle preventing family engagement (baquero, khairy, & al-romeedy, 2025). moderating effects are also evident. working from home or telecommuting allows employees to decrease psychological health gaps between different marital categories. location flexibility among unmarried workers decreased their stress by 22%, but schedule autonomy provided better stress reduction for married employees (bhat et al., 2023). organizations will obtain better results by developing specific workplace interventions that match the individual relationship situations of their workforce. the pandemic intensified existing mental health inequities. frontline service workers endured unexpected work pressure combined with health hazards because of their service position (frenkel et al., 2022). married women bore the heaviest caregiving duties because of this, their burnout rates climbed by 31% (shirmohammadi et al., 2022). some employees without spouses received limited advantages from remote work because they spent less time commuting, which enhanced their work-life balance (susanto et al., 2022). the emergency response actions delivered by organizations demonstrated why adaptive cultures remain essential. the companies which maintained open transparency in their communication practices experienced only 29% of employee well-being deterioration (nilsen & kongsvik, 2023; sun et al., 2023). the upcoming hybrid work designs require sustained investment in mental health resources because these lessons have proven essential for the future. the service industry requires its employees to use emotional labor which demands they manage their feelings during interactions with customers while working irregular schedules and facing demanding interactions. public research indicates that the global economic loss from work-induced stress and burnout reaches $1 trillion annually (salvagioni et al., 2022). modern research studies about service-based mental health outcomes related to workplace environments and marital status become the focus of this review. an analysis of work demands, organizational cultures, and support structures produces investigative findings to guide the development of operational protocols and public policy strategies. researchers must conduct future research about how marital roles affect people over time and how individuals in different cultures handle life challenges as practitioners need to embed mental health assistance within organizational frameworks through management development programs and equal policies that minimize stigma to achieve resilient teams. objectives of the study onj.1: to identify the primary factors contributing to the increasing prevalence of mental health issues among employees in service-oriented industries. h1: there are multiple underlying factors that significantly contribute to mental health issues among employees in service-based industries. obj.2: to investigate the relationship between marital status and mental health challenges among employees in service-oriented industries. h2: marital status is significantly associated with the prevalence of mental health issues among employees in service-based industries. agbioforum, 26(3), 2024 | 87 mishra et al. — exploring the impact of marital status and workplace environment on mental health among employees… obj.3: to examine the influence of the workplace environment on the mental health of employees with varying marital statuses. h3: the impact of workplace environment on mental health varies significantly across different marital statuses. research methodology data collection: the study incorporated multiple sources of knowledge to assess the relationship dynamics and psychological health at three distinct stages of the lifespan. furthermore, the research sought to explore the timing at which relationship status influenced these associations. primary data was collected using a structured questionnaire, with participants selected through stratified random sampling from two categories: unmarried and married. study area: the delhi national capital region was selected as the study area due to its diverse and dense service industry, a wide range of socioeconomic backgrounds, and distinct urban stressors that influence employee mental health. targeted population: since the targeted population is undefined, the sample size was calculated to be 385 using cochran's formula. accordingly, a total of 385 questionnaires were distributed to employees from various professional organisations using the offline method, with 270 employees responding. data from 200 respondents who completed the questionnaire in full were considered for analysis. research technique: a mixed methods approach was employed to provide a comprehensive understanding of mental health issues by integrating quantitative data on prevalence and correlations with qualitative insights into personal experiences and contextual factors. data extraction: the data were analysed using spss 26 and excel software. spss facilitated advanced statistical analysis and detailed data modelling, while excel provided essential tools for data organisation and basic calculations, making the two programs complementary for efficient and accurate data processing. the study utilised a structured questionnaire and employed stratified random sampling to select participants from two categories: unmarried and married. study technique: the study utilised mean, standard deviation, analysis of variance (anova), correlation, and the t-test to test the study’s hypotheses. a pilot study was conducted to ensure the reliability and accuracy of the questionnaire, with a sample size of 50 questionnaires selected to further validate these aspects. results this section presents the findings and interpretation of the data, structured according to the demographic characteristics, objectives, and hypotheses outlined in the study. the outcomes have been categorised to align with the research aims and hypotheses. a detailed table 1 summarising the results has been included, accompanied by an explanatory analysis of these findings. this approach ensures a clear and systematic presentation of the data, facilitating a comprehensive understanding of how the results relate to the study's objectives and hypotheses. table 1: reliability and validity statistics. reliability statistics label cronbach's alpha number of items kaiser–meyer–olkin and bartlett’s value significance value workload and job stress 0.818 3 0.716 0.000 work–life balance 0.777 3 0.700 0.000 organizational culture and support 0.721 4 0.727 0.000 mental health issues 0.813 10 0.779 0.000 workplace environment 0.745 10 0.740 0.000 table 1 presents the reliability statistics for various variables. the "cronbach's alpha" values range from 0.721 to 0.818, indicating the reliability of the questionnaire, as all values exceed 0.700. the items range from 3 under "workload and job stress" and "work-life balance" to 4 under "organizational culture and support," and 10 under both "mental health issues" and "workplace environment." the kaiser–meyer–olkin (kmo) values confirm the validity of the questionnaire, as all values are greater than 0.700, suggesting that the data are suitable for factor analysis. all significance values are 0.000, indicating that the results are statistically significant. independent reliability and validity testing were conducted for each factor (e.g., workload and job stress, work-life balance, organizational culture and support) to ensure the distinctiveness and internal consistency of each construct. this approach was considered appropriate, as the factors represent conceptually distinct dimensions of the overall framework under analysis. table 2 presents the "demographic characteristics of the respondents," detailing their gender, age, marital status, employment type, job role, and years of experience. as shown in the table, 49.0% of the respondents were female, and 51.0% were male. the largest group of respondents (35.0%) were aged between 26 and 35 years. a majority of the respondents (55.0%) were married. regarding employment type, 60% of respondents were full-time employees, and 25.0% held managerial positions. additionally, the table indicates that the majority of respondents (30.0%) had 1 to 3 years of experience in the corporate field. o1: to identify the primary factors contributing to the increasing prevalence of mental health issues among employees in service-oriented industries. h1: there are multiple underlying factors that significantly contribute to mental health issues among employees in service-based industries. agbioforum, 26(3), 2024 | 88 mishra et al. — exploring the impact of marital status and workplace environment on mental health among employees… table 3 presents the results of the kmo and bartlett's test. the kmo measure of sampling adequacy is 0.701, and bartlett's test of sphericity yielded a significant result, with an approximate chi-squared value of 283.187, degrees of freedom = 45, and a p-value of 0.000. these results from the kmo and bartlett's test confirm the suitability of the data for factor analysis in testing the hypothesis. moreover, table 4 presents the commonalities for various items. items such as wjs_1 (0.512), wjs_2 (0.597), wlb_1 (0.516), wlb_2 (0.677), wlb_3 (0.524), ocs_2 (0.677), and ocs_3 (0.535) exhibit medium commonalities, indicating reasonably strong correlations with the factors, although a significant portion of the variance remains unexplained. conversely, items such as wjs_3 (0.351), ocs_1 (0.434), and ocs_4 (0.488) display lower commonalities, suggesting that less of their variance is accounted for by the factors. the lower representation of these items may require further review for potential modification or removal to improve the validity and reliability of the hypothesis. table 2: the respondents' demographic profile. sr. no. demographic characteristics category n % 1 gender female 98 49.0% male 102 51.0% 2 age 18–25 years 60 30.0% 26–35 years 70 35.0% 36–45 years 40 20.0% 46–55 years 20 10.0% ≥56 years 10 5.0% 3 marital status married 110 55.0% unmarried 90 45.0% 4 employment type contractual 30 15.0% full-time 120 60.0% part-time 30 15.0% temporary 20 10.0% 5 job role administrative 30 15.0% managerial 50 25.0% supervisory 40 20.0% support 20 10.0% technical 60 30.0% 6 years of experience <1 year 20 10.0% 1–3 years 60 30.0% 4–6 years 50 25.0% 7–10 years 40 20.0% >10 years 30 15.0% table 3: kaiser–meyer–olkin (kmo) and bartlett’s test. kmo and bartlett's test kmo measure of sampling adequacy 0.701 bartlett's test of sphericity approximate chi-squared 283.187 degree of freedom 45 significance 0.000 table 4: commonalities. commonalities initial extraction wjs_1 1.000 0.512 wjs_2 1.000 0.597 wjs_3 1.000 0.351 wlb_1 1.000 0.516 wlb_2 1.000 0.677 wlb_3 1.000 0.524 ocs_1 1.000 0.434 ocs_2 1.000 0.677 ocs_3 1.000 0.535 ocs_4 1.000 0.488 extraction method: principal component analysis table 5, showing the total variances, reveals that a significant proportion of the variance is explained by the first three components. the initial eigenvalues indicate that component 1 explains 26.577%, component 2 accounts for 14.602%, and component 3 contributes 11.940%, collectively explaining 53.118% of the total variance. after these three components, there is a marked decline in the variance explained by subsequent components. from the fourth component onward, their contribution diminishes, with the fourth explaining 8.865% and the cumulative percentage reaching 61.983%. this suggests that the first three agbioforum, 26(2), 2024 | 89 mishra et al — exploring the impact of marital status and workplace environment on mental health among employees… components are crucial in capturing the main patterns in the data, and justifies their use in further analysis, as they effectively account for the majority of the variance. table 5: total variance. total variance explained component initial eigenvalues extraction sums of squared loadings rotation sums of squared loadings total % of variance cumulative % total % of variance cumulative % total % of variance cumulative % 1 2.658 26.577 26.577 2.658 26.577 26.577 2.223 22.226 22.226 2 1.460 14.602 41.178 1.460 14.602 41.178 1.571 15.714 37.939 3 1.194 11.940 53.118 1.194 11.940 53.118 1.518 15.179 53.118 4 0.887 8.865 61.983 5 0.787 7.871 69.854 6 0.748 7.481 77.336 7 0.722 7.219 84.555 8 0.556 5.562 90.118 9 0.553 5.533 95.651 10 0.435 4.349 100.000 extraction method: principal component analysis table 6: rotated component matrix. rotated component matrixa component 1 2 3 wjs_1 0.692 wjs_2 0.721 wjs_3 0.500 wlb_1 0.694 wlb_2 0.822 wlb_3 0.713 ocs_1 0.626 ocs_2 0.811 ocs_3 0.532 ocs_4 0.603 extraction method: principal component analysis rotation method: varimax with kaiser normalization a. rotation converged in four iterations in table 6, the first component, "workload and job stress," is strongly defined by wjs_1 (0.692) and wjs_2 (0.721), with wjs_3 (0.500) contributing to a lesser degree. the second component, "work-life balance," is primarily defined by wlb_1 (0.694) and wlb_2 (0.822), though wlb_3 (0.713) cross-loads on component 1. the third component, "organizational culture and support," is characterised by ocs_1 (0.626), ocs_2 (0.811), and ocs_3 (0.532), with ocs_4 (0.603) cross-loading on component 1. the cross-loadings of wlb_3 and ocs_4 suggest redundancy across components. it is recommended to exclude these variables for a clearer factor structure. overall, the matrix indicates that while the three factors are distinct, further refinement is needed for a more accurate model. o2: to investigate the relationship between marital status and mental health challenges among employees in service-oriented industries. h2: marital status is significantly associated with the prevalence of mental health issues among employees in service-based industries. table 7 presents the distribution and variability of mental health issues among vulnerable populations, stratified by marital status. the mean rating for unmarried individuals is 34.99 (sd = 6.43), while for married individuals, the mean rating is 32.93 (sd = 6.66). moreover, table 8 reveals a significant difference between the two groups of vulnerable populations. the mean of the variable is significantly lower in one group compared to the other, with a 95% confidence interval. the significance value for vulnerable populations is 0.028, which is below the 0.05 threshold. table 7: group statistics table. group statistics marital status n mean standard deviation standard error mean mental health issues unmarried 90 34.9889 6.43288 0.67808 married 110 32.9273 6.65770 0.63479 agbioforum, 26(3), 2024 | 90 mishra et al. — exploring the impact of marital status and workplace environment on mental health among employees… table 8: independent samples test. independent samples test levene's test for equality of variances t-test for equality of means f significance t degree of freedom significance (2-tailed) mean difference standard error difference 95% confidence interval of the difference lower upper mental health issues equal variances assumed 0.088 0.767 2.212 198 0.028 2.06162 0.93206 0.22359 3.89965 equal variances not assumed 2.220 192.580 0.028 2.06162 0.92884 0.22960 3.89363 o3: to examine the influence of the workplace environment on the mental health of employees with varying marital statuses. h3: the impact of workplace environment on mental health varies significantly across different marital statuses. table 9 presents the descriptive statistics for married and unmarried employees. the mean score for married employees is 32.93 (sd = 6.66), while for unmarried employees, the mean score is 34.99 (sd = 6.43). moreover, table 10 demonstrates that both the workplace environment (f = 35.905, p = 0.000) and marital status (f = 13.448, p = 0.000) significantly affect mental health issues. the model explains approximately 17.5% of the variation in mental health issues (r² = 0.175). furthermore, table 11 highlights a statistically significant positive effect of the workplace environment, leading to a slight decrease in mental health issues (p = 0.000). unmarried employees experience significantly more mental health issues than married employees, with a negative difference (p = 0.000), suggesting that marital status moderates the mental health impact of the workplace environment. table 9: descriptive statistics. descriptive statistics dependent variable: mental health issues marital status mean standard deviation n married 32.9273 6.65770 110 unmarried 34.9889 6.43288 90 total 33.8550 6.62142 200 table 10: tests of between-subjects effects. tests of between-subjects effects dependent variable: mental health issues source type iii sum of squares degree of freedom mean square f significance corrected model 1,522.992a 2 761.496 20.830 0.000 intercept 4,084.361 1 4,084.361 111.725 0.000 workplace environment 1,312.604 1 1,312.604 35.905 0.000 marital status 491.614 1 491.614 13.448 0.000 error 7,201.803 197 36.557 total 237,957.000 200 corrected total 8,724.795 199 a. r2 = 0.175 (adjusted r2 = 0.166) table 11: parameter estimates. parameter estimates dependent variable: mental health issues parameter b standard error t significance 95% confidence interval lower bound upper bound intercept 23.461 2.027 11.576 0.000 19.464 27.458 workplace environment 0.354 0.059 5.992 0.000 0.237 0.470 [marital status1_a = 1.00] −3.232 0.881 −3.667 0.000 −4.970 −1.494 [marital status1_a = 2.00] 0a . . . . . a. this parameter is set to zero because it is redundant. discussion this study contributes to the expanding body of literature examining the development of mental health issues among employees in service-based industries, with a specific focus on the relationship between these issues and marital status. the findings provide valuable insights into the interplay between workplace demands, marital status, and mental health outcomes. in this regard, several key factors have been identified as significant contributors to the emergence of psychological disorders among workers in service-based sectors. high job demands, work-related stress, poor work-life balance, and insufficient organisational support emerged as primary agbioforum, 26(2), 2024 | 91 mishra et al — exploring the impact of marital status and workplace environment on mental health among employees… drivers of mental health challenges. the robustness of these findings is supported by statistical measures of reliability and validity; the cronbach’s alpha values ranged from 0.721 to 0.818, indicating that the instruments utilised in the study were highly reliable. additionally, the results of the kaiser-meyer-olkin (kmo) and bartlett’s tests confirmed the suitability of the data for factor analysis, further validating the study’s conclusions. the study highlights that high workload and pressure are significant stressors, which are inherently characteristic of service-based industries. employees in these sectors are consistently subjected to intense time pressures and stringent deadlines, which frequently contribute to elevated levels of stress and anxiety. furthermore, the research underscores the critical role of organisational culture and support—or the lack thereof—in either mitigating or exacerbating mental health challenges. the findings align with existing literature, which suggests that employees who perceive a lack of support from their organisations are more susceptible to mental health issues (sopa et al., 2020). this study thus reinforces the importance of fostering supportive workplace environments to address the growing mental health concerns among service-sector employees. marital status is significantly linked to mental health. married workers, often balancing dual responsibilities at home and work, experience various stressors that may impact emotional stability and contribute to mental health issues. while marriage may provide home-based support, the increased responsibilities can counteract the stressrelief benefits, particularly when work-life balance is disrupted. single employees, potentially lacking strong social support networks, are more prone to feelings of loneliness and stress. this study supports previous research, such as cattani & rizza (2024), which highlights higher stress levels among single workers due to the absence of a robust social support system. divorced or separated employees also face emotional and financial challenges, which significantly affect their mental wellbeing. the study further establishes marital status as a crucial factor in understanding and addressing mental health issues in the workplace. the work environment's impact on mental health, moderated by marital status, was also explored. results show that a negative work environment can particularly hinder married workers' ability to balance work and family responsibilities, exacerbating stress. in contrast to previous studies in this field, the current research builds upon existing literature and introduces new perspectives on the impact of marital status on employee mental health. older studies, such as those by torres et al. (2023), focus on workplace support and organisational assistance as key factors for maintaining employee well-being. however, these studies generally address the broader employee population without considering the specific challenges faced by individuals of different marital statuses. hossain et al. (2021) and vaingankar et al. (2020) advanced the research by examining the interaction between marital status and workplace stress, finding that unmarried, divorced, and widowed individuals are more prone to poor mental health compared to their married counterparts. while these studies highlight useful correlations, they do not thoroughly investigate how marital status may exacerbate or mitigate mental health issues at work. similarly, abas et al. (2024) and hämmig et al. (2009) explored the impact of marital transitions on the mental health of both genders, emphasising emotional-socialisation experiences as crucial factors. while these studies identified specific agendas, they fell short of fully explaining the variations in deviant behaviours and mental health symptoms across different marital statuses in the workplace. this study builds on existing research, deepening the understanding of how marital status influences psychological well-being in the workplace. it explores the impact of marital transitions and responsibilities, providing a more comprehensive view of the factors affecting mental health disparities among employees. the findings suggest that single employees, in the absence of a strong organisational culture, may feel isolated. the study recommends that organisations give greater attention to employee well-being by considering marital status. targeted support, such as flexible working arrangements for married employees and social support networks for single employees, could mitigate the negative effects of workplace stress on mental health. employers in service industries should establish a comprehensive mental health support system tailored to employees' marital status. this includes offering counselling services, promoting work-life balance through flexible schedules, and fostering a supportive organisational culture that reduces stigma around mental health issues. policymakers can use these findings to drive policies that promote mental health in the workplace. a policy ensuring access to mental health resources would help reduce psychological problems among workers. in summary, the study provides a detailed analysis of the factors contributing to the rise of mental health issues in service sectors, highlighting the importance of marital status in addressing these challenges. by enhancing employee well-being, companies can create a more supportive work environment, improving both mental health outcomes and organisational performance. conclusion this study offers a comprehensive examination of the factors contributing to rising mental health issues among employees in service industries, with a particular emphasis on the role of marital status. the findings highlight the significant impact of heavy workloads, tight deadlines, and constant pressures in service-based employment on employees' mental health. the study further identifies marital status as a key predictor of mental health outcomes, noting that employees who are married, divorced, or have children face compounded stress and anxiety. it suggests that while all service industry employees are susceptible to mental health challenges, those with additional familial responsibilities, agbioforum, 26(3), 2024 | 92 mishra et al. — exploring the impact of marital status and workplace environment on mental health among employees… such as married employees or those with children, are more vulnerable, experiencing dual stressors from both work and family demands, leading to burnout. conversely, single employees may experience strain due to insufficient social support, which contributes to feelings of loneliness. additionally, organizational factors such as poor support systems, inadequate mental health resources, and stigma exacerbate these challenges. the study advocates for more personalized interventions that account for differences in marital status and individual circumstances. it makes a significant contribution to the broader discussion on mental health in the workplace, highlighting the complex relationship between marital status and mental health outcomes in service industries. the results underscore the need for organizations to carefully consider employee well-being and adopt tailored support strategies that address the unique challenges faced by different demographic groups. by doing so, employers can foster a more supportive work environment that enhances employee satisfaction and boosts organisational efficiency. references aarons, g. a., & sawitzky, a. c. 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(2005). lean solutions: how companies and customers can create value and wealth together. free press. yulita, y., idris, m. a., & dollard, m. f. (2022). effect of psychosocial safety climate on psychological distress via job resources, work engagement and workaholism: a multilevel longitudinal study. international journal of occupational safety and ergonomics, 28(2), 691-708. doi: https://doi.org/10.1080/10803548.2020.1822054 https://doi.org/10.1080/09585192.2020.1837201 https://doi.org/10.1080/09585192.2020.1837201 https://doi.org/10.1080/10803548.2020.1822054 agbioforum, 26(2): 99-107. ©2024 agbioforum pinmongkhonkul et al — diversity of birds recorded around ang luang in university of phayao, thailand diversity of birds recorded around ang luang in university of phayao, thailand sitthisak pinmongkhonkul* department of biology, faculty of science, university of phayao, muang phayao, 56000, thailand. email: sitthisak.pi@up.ac.th warach madhayamapurush department of tourism and hotel management, school of business and communication arts, university of phayao 56000 thailand. email: warach.ma@up.ac.th thanakorn panyopo department of biology, faculty of science, university of phayao, muang phayao, 56000, thailand. email: thanakornbanky@gmail.com this study aimed to survey bird species and assessed bird diversity at ang luang, university of phayao, located in mae ka, mueang phayao district, phayao province. the research was conducted between november 2022 and february 2023, with surveys taking place twice daily morning sessions from 7:30 a.m. to 9:30 a.m. and evening sessions from 4:00 p.m. to 6:00 p.m. across six survey stations over a 12-week period. a total of 522 bird individuals belonging to 19 families and 34 species were observed, though 8 individuals could not be identified. the most common bird families were columbidae and muscicapidae, each with four species, followed by cuculidae and pycnonotidae, each with three species. the most abundant bird species were common myna, sootyheaded bulbul, and white-vented myna. of the 34 identified species, 22 were residents, 6 were migratory, and 6 were both resident and migratory species. none of the species were listed as reserved wild animals of thailand, but 32 out of the 34 species were on thailand’s protected species list. all species were classified as least concern by the iucn, with one species listed in cites appendices ii. the bird diversity index at ang luang was 2.69, with an evenness index of 0.72. species were categorized by relative abundance, revealing 2 abundant species, 4 common species, 7 moderately common species, 14 uncommon species, and 15 rare species. similarity index analysis indicated that the survey points with the most similar bird populations were points 1 and 2, while points 4 and 6 were the least similar. the study area was divided into two types of land use: waterside public spaces, which included points 1, 2, 3, and 6, and deciduous dipterocarp forests, which included points 4 and 5. the average temperature was 24.58 ± 3.28°c in the morning and 28.37 ± 1.24°c in the evening. relative humidity averaged 61.30 ± 8.15% in the morning and 47.95 ± 2.92% in the evening. light intensity was 10,676.17 ± 7,695.37 lx in the morning and 2,746.21 ± 1,650.41 lx in the evening. the findings from this study are valuable for informing the management of the university’s natural areas and the conservation of biodiversity. additionally, the data can contribute to the development of ecotourism and educational initiatives related to birds at the university. keywords: bird diversity, ang luang, university of phayao. introduction the birds are vertebrate and warm-blooded creatures that have the characteristics of two wings for simple flying use and they have been widely accepted that birds evolved from theropods (prum, 2008). in the current period, birds have been discovered by scientists at approximately 11,140 species all over the world (pozio, 2005; xiao et al., 2017) such as freshwater ecosystems (barocas et al., 2021), marine ecosystems (singh et al., 2021), and roughly 1,098 species have been found in thailand's landscapes (singh, griaud, & collins, 2021), particularly the forests, where resident birds and migratory birds can be discovered (faaborg et al., 2010). furthermore, the bird is the only unit of the ecosystems that is tremendously significant to improving the environmental biodiversity (hamilton, 2005), involving bird abundance in forests (morrison, 1992). because birds have had an evolution vastly, including behaviour, a duty of the ecosystem, and habitational diversities. (schweizer & liu, 2018) in terms of consumption, some birds consume plants which consist of seeds or fruits, as good food, and there is an essential role in spreading seeds all over the place. likewise, the species of birds that consume nectar from flowers could be hybridized pollens to generate new flowers, and some species, as predators prey on other creatures such as insects and fish, including huge creatures and other birds. therefore, it is dramatically essential, as the only role in controlling the high population density of prey. in terms of birds as scavengers, they have a role in consuming prey, and some birds, have been eaten by other creatures. in addition, birds flying have rapid mobility and are likely to commute somewhere easily and swiftly, especially tough places so the birds are excellent pioneers. each species resides in different habitats such as the fields, the forests, the sea, the coasts, and the hills, including agricultural areas, local communities, urban areas, extremely dry areas or deserts, and frozen areas. some species reside in several areas whereas others live in limited areas. hence, an important index of the habitational abundance of the birds can be investigated (donnelly & marzluff, 2006; martin, 1980). university of phayao is colonized in mae ka subdistrict, mueang phayao district, phayao province, where it covers all spaces of approximately 5,158 rai, which is half of a dry dipterocarp forest and a large reservoir (ang luang). ang luang is a water storage for producing tap water and exhibiting a view of the university, involving other far buildings. mailto:sitthisak.pi@up.ac.th agbioforum, 26(2), 2024 | 100 pinmongkhonkul et al — diversity of birds recorded around ang luang in university of phayao, thailand this reservoir is a huge freshwater ecosystem that has habitats for various creatures, particularly diverse birds. from the paragraph described before, university of phayao is in a dry dipterocarp forest, which has changed into a beneficial area for human activities. in the past periods, there has been no research on bird diversity in this area. therefore, all authors were interested in studying the diversity of birds recorded around ang luang at university of phayao and the impact of change in using the benefits from the population density of birds. in addition, the data would be generated to be information bases or databases related to the diversity of birds in the area, which provides interested citizens associated with the diversity of birds in this location, plans to conserve abundance, and develops this space into shared space and studying environments for students, personnel, and the general public. materials and methods materials a canon camera (eos-700d version), a binocular (olympus 10x50), the garmin gps, a hygro-thermometer (union version), a lux meter (tenmars version), and a bird book of thailand. exploration study areas select significant points that can be set up in all 6 positions at ang luang and dry dipterocarp forests which are around the water resource, around this area equal to roughly 2,050 meters, with each position being approximately 342 meters apart. moreover, these places are forecasted that find several birds in each point such as station 1 (n 19 01.668, e 099 53.787), station 2 (n 19 01.592, e 099 53.983), station 3 (n 19 01.419, e 099 53.939), station 4 (n 19 01.329, e 099 53.871), station 5 (n 19 01.365, e 099 53.728), station 6 (n 19 01.527, e 099 53.753). all areas would be categorized as mainly two study areas, where dry dipterocarp forests have been altered as footpaths. nevertheless, that area still preserves abundance in forests: station 4 and 5. in parts 1, 2, 3, and 6 zones, these areas are the shared spaces, which are around the edges of the water resource. exploration of birds in ang luang. numerous birds were explored by using the fixed-point counting method, which is a repeated data collection, and gathering samples in 2 hours. to elaborate, the birds were surveyed at two times, such as 7.30 to 9.30 a.m., 4.00 to 6.00 p.m., once a week, and all 12 weeks. in exploring several birds, they were observed by taking photos with a canon camera (eos-700d version) and observing physical structures, such as beak, wing, feather, and behaviour characteristics, with a binocular. after that, recorded bird species would be compared and categorized by using a bird book in thailand and going online to many international websites, including the physical database of birds, preservation criteria of iucn, cites, and wild animal reservation and protection of thailand by data analysis of physical structures, such as beak, wing, feather, and behaviour characteristics, involving habitats (arid, wetland, riparian, forest, freshwater ecosystem), microhabitats. furthermore, exploring physical factors of all 6 locations measured temperature and relative humidity by using a hydrothermometer and light intensity with a lux meter. data analysis firstly, information associated with birds was investigated with the species diversity index of birds according to the shannon-wiener index: h’ in 6 locations (shannon, 1948). to elaborate, an index that represents the diversity of living things in a data set. h′ = ∑(pilnpi) s i=1 h' = shannon index of species diversity s = number of species pi = the proportion of the total number of individuals occurring in species i. secondly, the number of birds in ang luang and 6 locations was verified evenness index (j’) by pielou’s evenness index, which is an index that shows the uniformity of species in a survey area, and it consists of ranges from 0 to 1, with a value of 1 meaning that living things found in that area are the number of individuals is the same in all species. j′ = h′ hmax ′ = h′ ln(s) h' = species diversity index of shannon-wiener hmax ′ = in(s) = species diversity under maximum s = number of species j′ = evenness index thirdly, the number of birds in ang luang and 6 locations was measured in the relative abundance (ra) of pettingill which is a value that represents the number of species in an area, and it can be used to calculate the rarity of species in an area. 𝑅𝑒𝑙𝑎𝑡𝑖𝑣𝑒 𝑎𝑏𝑢𝑛𝑑𝑎𝑛𝑐𝑒 = 𝑇ℎ𝑒 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑓𝑖𝑛𝑑𝑖𝑛𝑔 𝑇ℎ𝑒 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠𝑢𝑟𝑣𝑒𝑦 × 100 abundant: a = 90-100% common: c = 65-89% moderately common: mc = 31-64% uncommon: uc = 10-30% rare: r = 1-9% finally, racking on the index of similarity by using sørensen in 1948 (rahman et al., 2019; wolda, 1981). to elaborate, it is an index that shows the similarity of two databases in ecology, it can be used to find the similarity of organisms in two data, especially between survey points and between survey periods, etc., and it has values from 0-1, by the value is near 1 that mean that the more similar two data. qs = 2c a + b c = bird species was found in both a and b points a = the number of birds in a point b = the number of birds in b point qs = index of similarity results birds found in ang luang in this study, from november 22, 2022, to february 6, 2023, for 12 weeks, it was illustrated that all bird species were categorized into 514 numbers, 19 families, and 34 species and could not identify approximately 8 species, which found columbidae and muscicapidae the most, 4 species per family. agbioforum, 26(2), 2024 | 101 pinmongkhonkul et al — diversity of birds recorded around ang luang in university of phayao, thailand table 1: a list of bird species was surveyed in ang luang, university of phayao. family & common name scientific name total status iucn protected wild animals columbidae spotted dove streptopelia chinensis 14 resident bird least concern oriental turtle dove streptopelia orientalis 26 resident bird least concern p red collared dove streptopelia tranquebarica 6 resident bird least concern p rock pigeon columba livia 2 resident bird least concern cuculidae green-billed malkoha rhopodytes tristis 3 resident bird least concern p greater coucal centropus sinensis 2 resident bird least concern p asian koel eudynamys scolopaceas 1 resident and migratory bird least concern p rallidae white-breasted waterhen amauornis phoenicurus 3 resident and migratory bird least concern p ardeidae chinese pind heron ardeola bacchus 35 migratory bird least concern p alcedinidae white-throated kingfisher halcyon smyrensis 4 resident bird least concern p megalaimidae coppersmith barbet megalaima haemacephala 5 resident bird least concern p lineated barbet megalaima lineata 2 resident bird least concern p artamidae ashy woodswallow artamus fuscus 1 resident bird least concern p dicruridae black drongo dicrurus macrocercus 6 resident and migratory bird least concern p ashy drongo dicrurus leucophaeus 2 resident and migratory bird least concern p laniidae brown shrike lanius cristatus 12 migratory bird least concern p corvidae eurasian jay garrulus glandarius 5 resident bird least concern p cisticolidae common tailorbird orthotomus sutorius 1 resident bird least concern p hirundinidae striated swallow cecropis striolata 1 resident and migratory bird least concern p barn swallow hirundo rustica 15 resident and migratory bird least concern p pycnonotidae sooty-headed bulbul pycnonotus aurigaster 90 resident bird least concern p streak-eared bulbul pycnonotus blanfondi 1 resident bird least concern p black-crested bulbul pycnonotus flaviventris 1 resident bird least concern p phylloscopidae dusky warbler phylloscopus fuscatus 31 migratory bird least concern p sturnidae common myna acridotheres ttristis 130 resident bird least concern p white-vented myna acridotheres grandis 55 resident bird least concern p estrildidae scaly-breasted munia lonchura punctulata 7 resident bird least concern p motacillidae white wagtail motacilla alba 11 migratory bird least concern p richard’s pipit anthus richardi 4 migratory bird least concern p muscicapidae oriental magpie robin copsychus saularis 6 resident bird least concern p white-rumped shama* copsychus malabaricus 7 resident bird least concern p grey bush chat saxicolla ferreaus 6 resident and migratory bird least concern p asian brown flycatcher muscicapa dauurica 3 resident and migratory bird least concern p nectariniidae purple sunbird cinnris asiatica 12 resident bird least concern p note: this table did not gather unknown birds for all 8 species. p = bird species are protected wild animals on the wild animal reservation and protection act, 2019. * = bird species are on the list of cites appendices. source: protected wild animals: https://www4.fisheries.go.th/local/file_document/20180730183909_1_file.pdf, reserved wild animals: https://library.parliament.go.th/ th/radioscript/rr2565-sep2, iucn red list: https://www.iucnredlist.org/, cites appendices: https://cites.org/eng/app/appendices.php https://www4.fisheries.go.th/local/file_document/20180730183909_1_file.pdf https://library.parliament.go.th/th/radioscript/rr2565-sep2 https://library.parliament.go.th/th/radioscript/rr2565-sep2 https://www.iucnredlist.org/ https://cites.org/eng/app/appendices.php agbioforum, 26(2), 2024 | 102 pinmongkhonkul et al — diversity of birds recorded around ang luang in university of phayao, thailand moreover, the birds were discovered as second families, such as cuculidae and pycnonotidae, with 3 species per family, and the most common birds in the top 5 were common myna (acridotheres tristis), all 130 birds; sooty-headed bulbul (pycnonotus aurigaster), totalling 90 birds; white-vented myna (acridotheres grandis), of about 55 birds; chinese pond heron (ardeola bacchus); and dusky warbler (phylloscopus fuscatus), all 31 birds table 1. (selvatti et al., 2015). furthermore, each area discovered migratory birds of all 6 species, resident and migratory birds added 28 species. then, when the number of bird species was identified according to rarity, it was revealed that 21 species were seen the most considerably, and 10 species were seen frequently. one species was not seen frequently in this place, including one species that was seen at the same as the resident, which was found to be a rare bird whereas it was still a migratory bird that was seen quite frequently, and one species was a bird that was found quite a lot in ang luang. nevertheless, it would be seen somewhere or in some areas. by recording all bird species, this data did not discover birds that were on the list of protected wild animals according to “wild animal reservation and protection act, 2019” showed that two species were definitely and accurately identified among all 34 species that were not on the list of protected wild animals, such as rock dove (columba livia), and spotted dove (streptopelia chinensis). moreover, in terms of threatened species according to the iucn red list, using classification rules version 3.1, illustrated that 34 species were the least concerned group. also, one species was discovered on the list of cites appendices ii, which was white-rumped shama (copsychus malabaricus). species diversity index and evenness index of birds in ang luang the species diversity index results of the shannon index in ang luang were 2.69, and the consequences of all 6 stations were 2.17, 2.44, 2.46, 2.55, 1.23, and 2.11, respectively figure 1. in terms of the evenness index consequences, ang luang was 0.72, and each location was 0.74, 0.78, 0.82, 0.84, 0.69, and 0.80, respectively figure 1. relative abundance of birds in ang luang in this analysis, ang luang found the relative abundance of 5 levels as 2 species in the abundant level, 4 species in the common level, 7 species in the moderately common level, 14 species in the uncommon level, and 15 species in the rare level table 2. the birds with the abundant level were found in 2 species: sooty-headed bulbuls at 100% relative abundance, and common mynas at 91.67% relative abundance. as for birds with the common level were found 4 species: spotted doves, brown shrikes, dusky warblers, and white-vented mynas table 3. when we classified relative abundance levels according to each location, we found that 6 stations did not see birds at the abundant or common level. likewise, at the moderately common level, station 1 revealed 3 species: common mynas (ra = 59.09%), sooty-headed bulbuls (ra = 45.45%), and dusky warblers (ra = 40.91%). station 2 discovered 3 species: common mynas (ra = 59.09%), sooty-headed bulbuls, and purple sunbirds (ra = 31.82%). station 3 illustrated 2 species of birds, such as common mynas and dusky warblers (ra = 36.36%) and station 4 found 3 species of birds in this area as sootyheaded bulbuls (ra = 40.91%), dusky warblers (ra = 36.36%), and white-rumped shamas (ra = 31.82%) whereas station 5 has no birds at the moderately common level. finally, station 6 discovered 2 species of birds, such as chinese pind herons (ra = 40.91), and sooty-headed bulbuls (ra = 31.82) table 4. figure 1: the bar chart of the shannon-wiener index of birds around ang luang at university of phayao. figure 2: the bar chart of the evenness index of birds around ang luang at university of phayao. table 2: the number of bird species discovered around ang luang according to abundance levels. relative abundance the number of species abundant: a 2 common: c 4 moderately common: cm 7 uncommon: uc 14 rare: r 15 agbioforum, 26(2), 2024 | 103 pinmongkhonkul et al — diversity of birds recorded around ang luang in university of phayao, thailand table 3: the relative abundance of birds around ang luang according to abundance levels. species of birds the number of birds discovered at 6 stations in the morning/evening (individual) ra (%) ra levels station 1 station 2 station 3 station 4 station 5 station 6 spotted dove 3/1 6 -/2 1/ 1/66.67 4 oriental turtle dove 4/13 4/3/ 1/41.67 3 red collared dove 2/1 1/1/ 1/41.67 3 rock pigeon 2/8.33 1 green-billed malkoha 1/ 2/ 16.67 2 greater coucal 1/1/ 16.67 2 asian koel -/1 8.33 1 white-breasted waterhen 1/1/-/1 25.00 2 chinese pind heron 4/3 5/5 1/ 17/50.00 3 white-throated kingfisher 1/-/1 2/25.00 2 coppersmith barbet 2/3 16.67 2 lineated barbet 1/1/ 16.67 2 ashy woodswallow 1/8.33 1 black drongo 2/1/1/2/ 33.33 3 ashy drongo 1/1/ 16.67 2 brown shrike 1/1/1/1 2/ 6/50.00 4 eurasian jay 2/2 1/ 25.00 2 common tailorbird 1/ 8.33 1 striated swallow 1/ 8.33 1 barn swallow 7/8/ 16.67 2 sooty-headed bulbul 13/7 8/5 6/6 13/7 11/4 8/2 100.00 5 streak-eared bulbul 1/ 8.33 1 black-crested bulbul 1/ 8.33 1 dusky warbler 6/3 3/2 5/3 6/2 1/ 75.00 4 common myna 42/6 31/12 8/9 3/2 6/11/1 91.67 5 white-vented myna 14/4 21/7 4/3 1/1/66.67 4 scaly-breasted munia 2/2/3 25.00 2 white wagtail 3/3 3/ 2/33.33 3 richard’s pipit -/3 1/ 16.67 2 oriental magpie robin 1/1 1/ 3/25.00 2 white-rumped shama 2/5 16.67 2 grey bush chat 1/3 2/ 25.00 2 asian brown flycatcher 1/1/1 -/1 1/2 50.00 3 purple sunbird 4/5 2/ 1/33.33 3 unknown a 1/ 8.33 1 unknown b 1/ 8.33 1 unknown c 1/ 8.33 1 unknown d 1/ 8.33 1 unknown e 1/ 8.33 1 unknown f 1/ 8.33 1 unknown g 1/ 8.33 1 unknown h 1/ 8.33 1 table 4: the number of bird species discovered at each relative abundance level of 6 stations. relative abundance the number of bird species station 1 station 2 station 3 station 4 station 5 station 6 abundant: a 0 0 0 0 0 0 common: c 0 0 0 0 0 0 moderately common: cm 3 3 2 3 0 2 uncommon: uc 5 6 4 3 2 2 rare: r 11 14 14 15 4 10 total 19 23 20 21 6 14 index of similarity table 5: index of similarity of bird species. locations (1) (2) (3) (4) (5) station 1 station 2 0.667 station 3 0.615 0.465 station 4 0.45 0.318 0.537 station 5 0.24 0.276 0.308 0.370 station 6 0.545 0.595 0.471 0.229 0.3 this study analysed the index of similarity of bird species in ang luang and illustrated that station 1 and 2 had the highest index of about 66.7% when compared to other locations. nevertheless, station 4 and 6 had the lowest similarity of approximately 22.9%. table 5. physical factors data of study areas the surveying illustrated that 6 areas are open spaces but these areas have shady large trees and were covered with grass and cover crops as weeds, such as black-jack (bidens pilosa), and sensitive plants (mimosa pudica), involving all explored spaces have a height above sea level at 460 meters except station 4, which is 525 meters. the first agbioforum, 26(2), 2024 | 104 pinmongkhonkul et al — diversity of birds recorded around ang luang in university of phayao, thailand station is covered with malaysia grass (axonopus spp.) and has foxtail palm (wodyetia bifurcata); 4 trees, height of 6.75 meters, black afara (terninalia ivorensis); 2 trees, height of 9.5 meters, and burmese sal (shorea siamensis); one tree, height of 13 meters the second area has blackwood (dalbergia cultrata); 3 trees, and the average height is 17.5 meters. these trees are shady to explored points, including numerous flowers as well as garden trees,especially snake plant (dracaena trifasciata) and dracaena loureiri gagnep (dracaena loureiroi). station 3 is an open space with purple orchid tree (bauhinia purpurea), which has grown approximately 10 trees, heights of 7 meters. moreover, there is manila grass (polytrias indica) for decoration as a beautiful view of the coffee shop. station 4 is a dry dipterocarp forest, with a notable plant such as blackwood, burmese sal (shorea obtuse), dark red meranti (shorea siamensis), which have a height of 7 meters. station 5 is the edge of a dry dipterocarp forest, with a notable plant, particularly burmese sal and dark red meranti. several kinds of plants have been invaded extremely due to landfilling around this area, including having a parking lot close to this point and enormous noise pollution. the final location is station 6, where there are viewpoints of ang luang and pavilions beside this location, it is an open area and has paper flower (bougainvillea spp.) that are huge. in addition, the physical factors of all locations concluded the following in the mornings, which had an average temperature of roughly 24.58 ± 3.28 °c, and the average temperature the lowest was station 1 around 19.55 ± 3.34 °c whereas the highest was station 6 of about 30.43 ± 5.73 °c. in terms of the evenings, all locations had an average temperature of roughly 28.37 ± 1.24 degrees, and the highest temperature was station 3 about 29.82 ± 2.96 °c whereas the lowest was station 6 about 26.48 ± 1.91 °c. furthermore, the investigation of relative humidity in the mornings revealed that the average of all areas was 61.30 ± 8.15% and the highest was 73.45 ± 9.90% at station 1. on the paradoxical side, the lowest humidity was 48.18 ± 9.91% at station 6. in parts of the evenings, the average of each location was 47.95 ± 2.92%, and the highest was 53.18 ± 12.64% at station 6 whereas the lowest was 45.27 ± 11.81% at station 3. finally, the light intensity of 6 stations in the mornings was 10,676.17 ± 7,695.37 lx, and station 6 had the highest average of 25,287.27 ± 6,873.44 lx, and the lowest was 2,827.73 ± 814.23 lx at station 1. in terms of the evenings, the light intensity of the involved areas was 2,746.21 ± 1,650.41 lx, and a location that peak related to light intensity more than other areas as station 1 about of 5,976.36 ± 2,435.84 lx, and plummet than other areas as station 6 approximately 770 ± 549.63 lx. discussion in surveying the diversity of birds in ang luang, university of phayao illustrated numerous bird species that had lived to find food around this zone, which could unearth all birds solidly of 522 birds, 19 families, and 42 species. the 3 most frequently revealed birds were common myna, sooty-headed bulbul, and white-vented myna when compared to the list that can be discovered on the avibase website of phayao province, which has all 567 species (phayao bird checklist avibase bird checklists of the world, n.d.). as results illustrated this area discovered all birds, approximately 7.41% of phayao. at the same time, rock pigeons were classified as having minimized relative abundance all over the area, although these two groups of birds were very abundant in urban zones. station 2, 3, and 4 were points that had the most species diversity index results were 2.44, 2.46, and 2.55, respectively, and the evenness index was 0.78, 0.82, and 0.8, respectively. moreover, station 2, 4, and 3 were points that found the most bird species as 23, 21, and 20, respectively, and mostly were rare species because there are appropriate abundance and factors for living birds; for instance, huge trees around this zone can provide shade to that area and refuges. furthermore, those stations have various tree species, whether a dry dipterocarp forest. in the case of station 4 and nearby station 3, the gardens were beautifully thrown, and in station 2, or an agricultural centre, where there is high exuberance, this station found numerous birds. whether it is a group of wild birds from the deciduous dipterocarp forest or birds in the open field from the agricultural centre. moreover, purple sunbirds are frequently seen at station 2, and white-rumped shama is found at only station 4. other studies mentioned that the distribution and the abundance of the population of birds are the main factors as the features of plants in that area (the complication of plant species, the diversity of trees, and the environmental factors) (askins, philbrick, & sugeno, 1987). on the paradoxical side, station 5, discovered the lowest number of about 6 species, 1.23 of the diversity index and 0.69 of the evenness index when compared to other zones because it has been severely interrupted by landfilling new lands inside the forest, and roughly 20 meters is parking for university of phayao students, which has sound pollution from vehicles and talking sound, including air pollution in smoked form vehicles (morrison, 1992). these things have generated special harshness in the evenings that students begin to back to dorms. from observation in the evenings, station 5 could not record bird species except in week 12. however, station 5 and station 6 found birds meagrely because it may be about time factors, which start exploration at approximately 5:30 p.m. and 5:50 p.m., and it is sunset time. moreover, the potential impact of environmental factors (e.g., temperature, humidity, light intensity) on bird diversity found that station 5 and station 6 were shady habitats that had an average temperature of roughly 28.7 °c, relative humidity of about 85.4%, and light intensity of around 190.54 lux were recorded in the was shady habitats, resulting in appearing fewer birds because the temperature, humidity, light intensity factor impact the growth rate of trees, shrubs, and grasses, which based on resources such as food, nesting materials, and shelter, similar results with perkins et al. (2000) demonstrated that in open habitats, a number of water hens, doves, pipits, quails, and jungle fowl had close relations with the grasses. this relation was due to the richness of seeds, insect larvae, and vegetation that were agbioforum, 26(2), 2024 | 105 pinmongkhonkul et al — diversity of birds recorded around ang luang in university of phayao, thailand induced by good weather. additionally, over observation, some weeks had strong storms and wind, such as weeks 4, 6, 9, and 12. when comparing the number of birds in the evenings of the same week illustrated that the number of birds was quite less than in weeks that had strong wind as weeks 9 and 12. throughout the evening exploring birds was demonstrated at only one survey point, but whether the two events are truly related is not known. likewise, in week 8 the evening found birds at much less even though that area did not have much wind during the exploration. however, other factors may impact possible events; for example, locations near explored points were damaged by wildfire. ang luang is a huge reservoir, that can attract birds that consume food in areas close to particular water resources. this research demonstrated 3 species, such as chinese pond heron, white-throated kingfisher, and white-breasted water hen. however, throughout the research, those birds did not conduct behaviour associated with finding food for seeing authors. in contrast, the bird groups showed behaviour related to using benefits from a reservoir, that was swallows, could not categorize species. this bird cluster would appear in the evenings from about 4:30 p.m. onwards and would hover continuously on the water's surface. furthermore, around 6:00 p.m., the observers could discover this bird cluster was hovering. after that, the observers research the information barn swallow (hirundo rustica) in order to use it in comparison with other birds. the behaviour of the barn swallow was catching prey from the water's surface (costanzo et al., 2018). the researchers assumed that those birds had similar behaviours to the barn swallow (see figure 3). when conducting this research results were compared to the study results in kwan phayao, where divided station all 7 features according to the characteristic locations. this result demonstrated that kwan phayao could discover all 79 species and 34 families, and this zone had almost twice as many birds as ang luang, which could fine the terrestrial birds together with other kinds of birds depending on each surveyed point. this was distinct from ang luang, which had only 3 types of birds that looked for diet in the water sources (chinese pond heron, whitethroated kingfisher, and white-breasted waterhen). when taking the community of birds in each station of kwan phayao compared with ang luang was found that the bird society had resemblance in 4 features of areas, such as plants emerging from the water, flooded grass forest, open zone above the water surface or grass, and a king ngam mueang monument, where are open spaces that have embryophyte or aquatic plants to grow on areas considerably. birds that were found in 4 locations, principally, were birds that looked for food in open areas, such as common myna, baya weaver, paddyfield pipit, barn swallow, scaly-breasted munia, brown shrike, and asian brown flycatcher, all birds mentioned before, were species to discover at ang luang as well. when compared with the research on the population of birds in the natural forests at doi inthanon (hvenegaard & dearden, 1998), mae sa-kog ma biosphere reserve (siri et al., 2019), and khao luang national park (round et al.,2006) illustrated that ang luang had the number of species less than 3 researches. from doi inthanon and suthep-pui, 237 species of birds were found, mae sa-huai khok ma 65 species, and at khiriwong village, 123 species were found. moreover, ang luang had dominant birds that were quite distinct. remarkable birds from mae sa-huai khok ma have the grey-cheeked fulvetta, hill blue flycatcher, puff-throated bulbul, and martens's warbler. in parts of khiriwong village, pycnonotidae and nectariniidae were outstanding birds found in this place, and the species diversity showed that ang luang had a lower index than mae sa-huai khok ma. nevertheless, the species diversity of the 2 locations was utilized as a reference, which did not reckon this index. likewise, when analyzed with the other studies in urban areas of thailand, such as waterbirds in the wetland of bangpu, thailand (wanna, 2020), suranaree university of technology (sut), nakhon ratchasima province (naithani et al., 2018), kasetsart university, bangkok, thailand (chankhao et al., 2023), bird diversity in metropolitan area, thailand (chaiyarat, 2019), koh sichang, chonburi province, and yala municipality, southern thailand demonstrated that ang luang had the population of bird species less than sut and koh sichang, whereas more than yala municipality. ang luang and sut had the similarity of bird species approximately 24 species, ang luang and koh sichang had 17 species, and ang luang and yala municipality had 8 species. also, analyzing the resemblance illustrated that the similarity was quite inferior whereas they had similar values when compared to the dominant birds of each area that had the difference (the 3 dominant birds in ang luang, such as common myna, sooty-headed bulbul, and white-vented myna: sut, such as house sparrow, oriental turtle dove, and zebre dove: koh sichang, such as rock pigeon, common myna, and yellow-vented bulbul: yala municipality, such as eurasian tree sparrow, common myna, and rock pigeon). in terms of species diversity, ang luang had an index less than sut but more than koh sichang and yala municipality, because all research was at distinct times and unequal study periods, which resulted in different values. furthermore, the distinct similarity index of between ang luang and other areas. this is probably due to the fact that both sites share non-similar features, including being manicured ornamental gardens, having shade from nearby tall trees, being close to the reservoir's banks, having a variety of plant species, and having regularly maintained plants. during study periods, the authors were interested in one bird species that was unknown a because they have structures not similar to other birds when we anatomized the features of birds in the guidebooks or the websites. after that, the authors have continuously searched since the day this bird was discovered. this bird species is small or moderate in size and has a body length of approximately 10-15 centimeters, including a slim body. furthermore, other structures have short gray hair, completely black hair, and a long straight beak that seems to be an olive-backed sunbird. in parts of the behavior, they flap their wings periodically to maintain altitude while flying. then, the agbioforum, 26(2), 2024 | 106 pinmongkhonkul et al — diversity of birds recorded around ang luang in university of phayao, thailand wings are closed and attached to the body and then swoops into the air. therefore, the authors forecasted that unknown a was pycnonotidae. from the aforementioned results, the authors had biodiversity conservation and area management within the university of phayao sustainably by meeting organizations and stakeholders by providing excellent knowledge associated with biodiversity conservation and establishing new criteria or policies in order to plummet noisy pollution from human activities and driving vehicles and new buildings within the university, including the information gathered in the study benefit planning area management and biodiversity conservation within the university by four recommendations in the future are 1) conduct studies in other areas of phayao university, such as the school building area and forests in other areas. ensure that the survey period is appropriately arranged and extended to obtain more comprehensive data. 2) study bird species and behaviours to create a database of bird species in phayao university, which can contribute to conservation and birdwatching activities. this can raise awareness among personnel, students, and visitors. 3) investigate the relationship between bird species and topography, including physical and biological factors, in more detail., and 4) utilize the most up-to-date database to obtain information that reflects the current reality, including the current scientific names. figure 3: swallow swarms that unknown type: (a) week 5, and (b) week 9. conclusion the diversity study of birds around ang luang at university of phayao displayed 514 birds, 19 families, and 34 species, which could identify bird species and could not categorize species of approximately 8 birds, 8 species. the totals of birds in this area are 522 birds, 42 species, which could discover the most 3 types, such as common myna, sooty-headed bulbul, and white-vented myna. according to the season, around ang luang, resident birds were found of about all 22 species, migratory birds of approximately 6 species, and resident and migratory birds of 6 species, which families mostly discovered as columbidae, muscicapidae, cuculidae, and pycnonotidae. furthermore, all 34 species are not protected wildlife whereas 32 species are on the list of reserved wild animals of thailand, and all 34 species are the status threatened at the least concern according to the assessment of iucn (office of natural resources and environmental policy and planning, 2017), and only one species is on the list of cites in parts of the species diversity index (shannon index: h’), birds at ang luang were 2.69, station 4 was 2.55, and station 5 was 1.23, which had the lowest index, and in terms of the evenness index, ang luang had an index of 0.72, station 4 was 0.84, which had the highest index, and station 5 was 0.69, which was the lowest. additionally, the relative abundance of birds found that all 42 species had 2 species at the abundant level as 2 species, such as sootyheaded bulbul, and common myna, and at the common level as eastern spotted dove, brown shrike, dusky warbler, and white-vented myna. the parts of the similarity index demonstrated that station1 and 2 had the highest index of about 66.7%, and station 4 and 6 had the lowest index of about 22.9%. finally, the physical factors database of study areas around ang luang is appropriate for dwelling birds, which could distinguish 2 categories, such as the dry dipterocarp forest, and the decorative garden. the 2 types have huge trees to provide shade, simultaneously, these areas are open locations, where several species of plants are. also, station 5 and 6 have been interrupted by vehicles extremely as well. data availability the data that support the findings of this study are available on request from the corresponding author. conflicts of interest the authors declare that they have no conflicts of interest. 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https://doi.org/10.1016/j.vetpar.2005.05.024 https://www.science.org/doi/10.1126/science.1168808 https://www.science.org/doi/10.1126/science.1168808 http://doi.org/10.15666/aeer/1702_27652777 https://doi.org/10.1007/s10531-005-2006-7 https://doi.org/10.1007/978-3-319-91689-7_8 https://doi.org/10.1016/j.ympev.2015.03.018 https://doi.org/10.1002/j.1538-7305.1948.tb01338.x https://doi.org/10.1002/j.1538-7305.1948.tb01338.x https://doi.org/10.1016/j.ecolind.2021.107536 https://doi.org/10.1016/j.ecolind.2021.107536 https://doi.org/10.13057/biodiv/d200121 https://doi.org/10.13057/biodiv/d200121 https://doi.org/10.13057/biodiv/d210862 https://doi.org/10.13057/biodiv/d210862 https://doi.org/10.1007/bf00344966 https://doi.org/10.1007/bf00344966 https://doi.org/10.1111/jav.00934 the role of industrial intellectual property rights in supporting small and medium enterprises in arab countries agbioforum, 26(2): 77-85. ©2024 agbioforum al bermani et al — the role of industrial intellectual property rights in supporting small and medium enterprises in arab countries the role of industrial intellectual property rights in supporting small and medium enterprises in arab countries ali mahdi abbas al bermani* college of administration and economics, mustansiriyah university, baghdad 10011, iraq. email: dr_amaal@uomustansiriyah.edu.iq orcid id: https://orcid.org/0009-0005-1826-2134 abeer mohammed jassim college of administration and economics, mustansiriyah university, baghdad 10011, iraq. email: dr_abirm_jassim@uomustansiriyah.edu.iqhttps: orcid id: https://orcid.org/0000-0002-1543-9820 butheina haseeb salman al-shareefi college of administration and economics, mustansiriyah university, baghdad 10011, iraq. email: buthena_ad@uomustansiriyah.edu.iqhttps orcid id: https://orcid.org/0009-0005-1826-2134 this paper looks at industrial intellectual property rights to help small and medium enterprises grow, while also looking at their part in promoting competition around the world through new ideas in arab markets. it shows that using iprs smartly helps not only to enter markets more easily but also brings in funds for continued sustainable economic growth. the work wants to look at the legal, institutional, and financial problems that make it hard to enforce iprs well and suggests plans to build strong intellectual property systems that aid arabic small and medium businesses. a mix of telling and studying methods is used to look at how iprs affect the growth and lastingness of smes within arab money systems. it checks local ip laws by joining practical research on sme actions with legal study of safety and innovation work. the study also analyses patent applications together with trademark and industrial design data to evaluate the effectiveness of regional ipr regulatory systems. the findings imply that industrial iprs do assist sme innovation and increased market access within arab economies but often are limited because of poor enforcement of regulations weak legal frameworks, and scant public awareness of the resources available for intellectual property. countries like the uae and saudi arabia which have stronger intellectual right systems therefore better performing smes are more innovative and competitive. indeed, barriers to successful commercialisation of intellectual property in this region turn out to be inadequate r&d investment lacking institutional collaboration and overregulation. stronger legal protection coordinated institutional awareness coupled with more general public awareness on iprs would leverage intellectual property as a driver for sustainable growth in smes. keywords: intellectual property, industrial intellectual, property rights, small and medium enterprises, sustainable development. introduction smes have significantly contributed to the economies of developed and developing countries due to their contribution to growth and potential to attain high rates of growth (adjabeng & osei, 2022; chowdhury et al., 2022; coldwell et al., 2022). however, present conditions of markets have caused the competition among smes to be very stiff because these enterprises do not generally require large capital investments (eriotis, 2024; petry, 2021; sirin, uz, & sevindik, 2022). therefore, most of them have embraced different approaches to retain their position in the market and ensure sustainability (cennamo, 2021). this change has made innovation and knowledge the critical paths for smes in this new era of business (alnuaimi et al., 2021; erena, kalko, & debele, 2023). since industrial property rights are very important in the process of innovation and creation, the protection of such rights has gained increasing importance, thus enabling them to be acknowledged as assets like traditional ones (alwan et al., 2023). the focus right now on industrial property rights within smes in industrialized countries is seen in the gradually increasing financial revenues from inventions and new industrial designs (petry, 2021; su et al., 2022). strengthened and enforced industrial property laws mean that even besides legal protection for the inventor and innovator, their financial and material rights are guaranteed, which will also bring continuous motivation for expansion, employment creation, and technological as well as knowledge development (kato & charoenrat, 2018). industrial and technological development is thus a basic prerequisite for economic development and a core driver toward sustainable development. consequently, investment in creative smes should be promoted through the establishment of legal frameworks protecting creativity and innovation. this would lay down primary supportive structures that would ensure youth employment, lower unemployment as a rate, and increase and enhance the market value plus competitiveness of these ventures. assuring legal coverage for creative and innovative efforts can greatly alleviate the hurdles that most developing countries, especially those in the arab region, encounter in chasing their development targets (elmansori, 2014). though industrial property rights protection contributes substantially towards the formation of knowledge-based economies and perpetuation of market continuity and growth for smes, it plays such a substantial role only in small and medium-sized enterprises across much of the developing world, except for arab countries. the limitations are particularly pronounced regarding the production and economic models of these enterprises. research questions 1. how do iprs influence the scalability, competitiveness, and sustainability of medium enterprises in arab economies, particularly in the face of globalization and economic diversification? mailto:dr_amaal@uomustansiriyah.edu.iq https://orcid.org/0009-0005-1826-2134 mailto:dr_abirm_jassim@uomustansiriyah.edu.iqhttps https://orcid.org/0000-0002-1543-9820 mailto:buthena_ad@uomustansiriyah.edu.iqhttps https://orcid.org/0009-0005-1826-2134 agbioforum, 26(2), 2024 | 78 al bermani et al — the role of industrial intellectual property rights in supporting small and medium enterprises in arab countries 2. what structural and institutional barriers hinder the enforcement and efficacy of iprs in fostering an innovation-driven economic ecosystem in arab countries? 3. how does the integration of universities’ research institutions with industrial sectors impact the commercialization of intellectual property and the advancement of knowledge-based economies in the arab region? 4. to what extent do disparities in research & development investment and legal frameworks across arab nations affect the effectiveness of ipr protection and the region’s overall innovation landscape? research objectives 1. to critically assess the role of iprs in enhancing the resilience, innovation capacity, and market expansion of medium enterprises within arab economies. 2. to identify and analyse the key legislative, financial, and institutional constraints that impede the effective enforcement of iprs and propose actionable policy reforms. 3. to evaluate the degree of synergy between universities’ research institutions and industrial sectors in driving technological advancement and knowledge commercialization. 4. to investigate the impact of differential research & development investment and legal infrastructure on the strength of ipr protection across arab nations and its implications for regional innovation competitiveness. literature gap the effect of iprs on smes in the arab area is still not sufficiently explored, though there are increasing views about their positive influence on innovation and economic performance. even though most countries have formulated ipr laws, these do not uniformly enhance industrial growth or economic diversification because, in many cases, enforcement is weak, there are ambiguities in the legal frameworks, and institutions fall short. most smes do not explicitly know how to use ipr frameworks to enhance their competitiveness, attract investment, and penetrate international markets. although saudi arabia and the united arab emirates take a lead in the region regarding the advancement of intellectual property protections, a lot of arab countries are facing challenges regarding the proper implementation and institutional support. amongst these, the most crucial is the least commercialization of patents and industrial designs due to less collaboration between research institutions and the industrial sector. another aspect is low investment in research and development which hinders technology progression, stopping arab economies from leveraging intellectual property as an engine for innovation and sustained growth. how this research addresses the gap the study will try to synthesize various disciplines by investigating the effect of iprs on sme growth and sustainability in arab economies. the analysis is extended from the legal framework to show how ipr systems contribute to pragmatic business advancement, industrial development, and technological innovation. iprs are used herein to examine patent filings, trademark registrations, and industrial design applications as a measure of individual arab country usage of iprs as a means of economic resilience. the paper further articulates how universities and research institutions create intellectual property, implying that richer institutional collaboration greatly enhances the commercialization process of innovations. such protection is influenced by the difference in expenditure on research and development among these economies; therefore, major impediments from within the arab economies deny them access to harnessing their intellectual property potential fully. it makes specific recommendations to improve legal frameworks and enforcement mechanisms so that an environment conducive to innovation and growth by smes is created. significance of the study the results of this study will give valuable information to policymakers working with academic institutions and industrial leaders in arab economies. it highlights how iprs should be thoroughly understood as the drivers of industrial growth and economic diversification that will, hence, facilitate the shift to knowledge-based development. the study assesses ipr frameworks and their impact on smes; hence, it provides fundamental guidelines for adopting a wellgoverned intellectual property management system that would foster regional economic development. it stresses that stronger networking frameworks should be established by academic institutions to link research centre activities with commercial enterprises. the study demonstrates that the arab business sector can develop high technologies and lead the global market through partnerships between educational institutions and industrial stakeholders for patent commercialization. the major analysis is on the barriers that impede the knowledge flow in a holistic approach towards promoting sustainable development through intellectual property. from this study, it can be derived that the prosperity of smes in securing their ip needs enormous financial support plus sophisticated legal infrastructure. the document specifies exact ipr enforcement measures that policymakers should undertake to improve legal frameworks and increase innovative research outputs. an innovation framework for arab smes, which includes protecting ip, has been created to ensure continued business growth. these outcomes form an excellent basis for the construction of future ipr policies that will advance arab economic objectives. it also renders fundamental tenets for enhancing the protection of industrial property rights and creating institutional partnerships to establish an innovation platform for sustainable entrepreneurial activities in regional and industrial development. theoretical review the conception of ip claims that the production of goods or services is induced by the finding of new information resulting in profit and technical advantage. this idea can be used to explain the economic and legal progress made, agbioforum, 26(2), 2024 | 79 al bermani et al — the role of industrial intellectual property rights in supporting small and medium enterprises in arab countries globally, during the scientific and technological revolution. ip has both physical and non-physical elements; it stands for the product of human intellect and creativity, such as industrial inventions and prose and artistic works (hunter, 2012). from many viewpoints, ip is perceived as international recognition of innovative outputs by society, having modern and technological means that require protection against unauthorized use. such protection ensures that creative societies obtain both monetary and non-monetary returns on their investments. the accumulation of intellectual properties thus gives a competitive advantage to any society on the global plane (dratler jr & mcjohn, 2024). ip rights cover all the legal claims that stem from intellectual activities or efforts resulting in innovation in agriculture, industry, science, literature, and the arts. ip rights are about monopoly and commerce. it gives innovators the power to stop others from using their creations, works, or any form embodying values both tangible and intangible, mental contributions, or commercial aspects without a proper legal licence. such a notion permits the possibility of material and intellectual innovation being sold or bought and generating financial and non-financial returns. the main categories of ip are industrial property rights and literary and artistic property rights. this research focuses on industrial property rights because it relates more to small and medium enterprises (ockwell et al., 2010). the ownership concept also merits some evolution through time. the centuries-old dominant principle of ownership related to many fundamental purposes generally confined within national borders. but after the first industrial revolution, more trade began to show that national protection had limits. by the second half of the nineteenth century, countries saw they needed international deals to help keep new inventions safe from traveling across borders, especially as global trade grew. the international ip system started taking clearer shape with the signing of the paris and berne conventions, followed by the establishment of wipo (world intellectual property organization). a major turning point was 1986 in the uruguay round where iprs found a new path particularly with rising value in goods rooted in intellectual content such as research, development, and technology. the developed nations led by the united states pushed for property protection to be embedded as a core part of any international trade agreement. this set the stage for iprs to become one of the core components of gatt and later within wto under trips. the main goal of this deal was to fix big problems that slow down world trade, especially the huge gaps in ipr safety among different countries and the poor enforcing of related rules. the deal points out that good ipr safety can be done by fostering tech creation, research, and development; helping share and spread tech under a system of global legal protection; and finding a fair middle ground between the rights and duties of makers and users of tech knowledge (palmeter, mavroidis, & meagher, 2022; sözer, 2006). the concept of iprs pertains to the protection of elements and innovations associated with commercial and industrial activities. this protection is granted through rights or privileges for the products of these innovations, such as trademarks or patents. it is practically realised through laws that safeguard the owners of innovations, enabling them to benefit from them within a defined period, in accordance with international agreements governing these rights. industrial property encompasses the products of both the extractive and agricultural industries in all their forms. the key types of industrial property can be summarised as follows (nguyen et al., 2024). a patent is granted for a creative idea within a specific technical field that addresses a societal problem. industrial designs, on the other hand, refer to a mould, structure, or form used in the manufacture of goods, giving the resulting products a distinct appearance that sets them apart from similar products, such as car bodies. industrial designs refer to the arrangement of lines in innovative ways that enhance the aesthetic appeal of goods, such as textile patterns. trademarks are a key type of industrial property, representing any distinctive physical sign used by producers or sellers to differentiate their products, aiming to build a unique commercial reputation and attract consumers. the wto has developed agreements and systems to address disputes related to iprs, recognising their significant role in international relations. developed countries have pushed for the inclusion of iprs within the wto framework, particularly due to concerns about imitation, industrial fraud, and the copying of advanced goods by some developing nations. as a result, laws and regulations to protect these rights were created, leading to the approval of the trips agreement, despite initial objections from developing countries who feared it would promote monopolies and distort trade. over time, these countries accepted the agreement, recognising its positive aspects, such as limiting the arbitrary policies of developed countries and ensuring ipr regulation within a multilateral system (herman, coombe, & kaye, 2020). due to disparities in economic and social conditions, technological development, and stages of growth, the definition of small businesses varies from one country to another. a business that is small in the united states can be large in a developing country, and assessments may vary within the same nation. the features include the capacity to employ workers with diverse skills, low investment risks, the ability to provide training that enhances capabilities, leading to better productivity and income. this criterion provides various definitions of small businesses. for instance, the world bank classification considers firms with less than 50 employees and a total capital of $3 million as small (garcía-quevedo, jové-llopis, & martínez-ros, 2020). the international labor organization considers businesses with less than 10 workers but up to 99 workers as small (bessa et al., 2022). the united nations industrial development organization classifies them as projects managed by a single owner employing between 10 and 50 workers or projects that require low establishment costs and use a deplete workforce. the importance of small enterprises, however, has been increasingly realized in national economies, agbioforum, 26(2), 2024 | 80 al bermani et al — the role of industrial intellectual property rights in supporting small and medium enterprises in arab countries particularly regarding their role in promoting social stability and reducing unemployment. this is because development experiences from some asian countries already proved that the small enterprise sector could make a lot of positive impacts when these countries shifted their status from being mere consumers to becoming more productive (shinozaki, 2012). the importance of small enterprises can be summarised in several points: facilitating entry into joint ventures with local or foreign partners, especially as foreign investment provides financing, technology, and market connections; offering job opportunities that reduce poverty and unemployment; increasing the production of exportable goods or substitutes for imports, thus saving foreign currency and reducing balance of payments deficits; promoting industrial integration by supplying intermediate goods to large projects; exploiting reserves of raw materials and resources, helping to reduce regional disparities; encouraging creativity and innovation by employing skilled workers; and expanding competition to diminish monopolistic control in certain sectors (aita, 2020). small businesses can be grouped according to the work they do, like changes or modifications tasks, where materials get changed into finished or middle products, adding value (creating goods for use or goods that are used later in production). service projects are those which offer services in exchange for remuneration and commercial projects are those which focus on buying goods to resell or repackage for profit. these are also common types of businesses in the small business sector. these kinds of firms are normally categorized according to their objectives, scope, or legal structure (ali & nazmi, 2023). a wide range of difficulties and obstacles is confronted by the small enterprise sector, which can be summarized as follows: lack of adequate external financing, for example, loans from commercial banks is a big challenge to small enterprises because most of them do not qualify and or cannot provide the necessary guarantees. also, the terms of financing including interest rates and repayment schedules are often unfavourable. the setup of small enterprises faces difficulties due to the cumbersome and heterogeneous procedures, massively multiplied regulatory bodies, and poor coordination among these bodies, which are posing challenges to the management and running of small businesses. marketing barriers: inward hurdles relate to the ignoring of marketing strategies and research and inadequate knowledge in this field. outward, small firms face major challenges from consumer preference for foreign products, weak competition against imported goods, and local products not being protected. economic barriers: this type of barrier relates to the general economic environment. for example, stagnation or reduction of industries connected with small businesses can hinder the attainment of expected profits by the business. administrative barriers: most small firms lack the basic management, accounting, and marketing skills essential to running a firm successfully. the inexperience and unqualification of the owners contribute greatly to this problem (titman, keown, & martin, 2018). the sources of financing for small projects can be categorised in various ways. in terms of ownership, financing can come from the project owners themselves through reinvestment of profits, from external entities such as banks or financial institutions, or from suppliers to the small project. in terms of type, financing can either be bank financing or commercial financing, which involves merchants or businesspeople. according to the duration, financing can be classified into long-term financing (loans with a term of more than 10 years), medium-term financing (ranging from 1 to 10 years), or short-term financing (less than one year). in terms of purpose, financing can be classified as either working capital financing, which is intended to meet reserves and short-term transactions for enhancing the production cycle of the project, or investment financing, which is allocated for expenses related to expanding or creating new production capacity. industrial iprs and their relationship to small projects in developing countries the trips agreement introduces new forms of protection for ipr assets commonly used in various economic sectors, often originating from developed countries. however, this agreement has significant implications for developing countries, which are typically consumers of these technological innovations. one major consequence is that inventions and innovations cost so much due to foreign protection and monopolization where the innovator country pricier up production for certain goods because those goods depend on such innovations (gatti, 2023). additionally, long ipr protection periods or patents delay technology transfer, thereby worsening production cost. the increase in costs serves as a hindrance to trade globally, thus contradicting the tenets of free trade as espoused in the gatt agreement (baena-rojas, cardona-montoya, & herrero-olarte, 2023). some people think that it can help small projects. to get a competitive edge, a project needs to use industrial iprs; this means focusing on research and development along with creating new ideas. for ongoing competitive edge, projects must keep protecting iprs because the heart of a modern group is its skill to create new things, protect, and use smart assets. industrial property is one key part here, and its safety helps encourage research and development work. it also helps stop easy copying of new items which makes the project the only seller of a new item. this can lead to higher earnings so it promotes more product improvement and creation. industrial iprs also serve as a good tool for selling and sending goods to other places. the marketing of industrial property is therefore seen as facilitating the distribution of goods from the place of manufacture to the consumer. this reveals latent market needs and opportunities that can be harnessed for longterm profits. one such component is the trademark, which also forms an integral part of marketing and hence facilitates effective competition in the economy, which is otherwise very diverse and competitive. consumers identify products by their trademarks, thus associating them with certain qualities, aiding the marketing of the agbioforum, 26(2), 2024 | 81 al bermani et al — the role of industrial intellectual property rights in supporting small and medium enterprises in arab countries product without requiring the constant use of displays, and helping to sustain the presence of the product in the market. such an effect is also expected in export markets when industrial property rights are secured (ndiaye et al., 2018). indeed, industrial property rights and laws are fundamental in attracting foreign direct investment to local markets either through direct management of enterprises in the local market or through licensing arrangements with nationals. some studies have shown that foreign investment is boosted by the enhanced legal protection of industrial property. the more stringent the procedures are surrounding property rights, the more foreign investment increases, and the more commercial franchise rights are expanded to local companies (kuteesa, akpuokwe, & udeh, 2024). this would benefit small projects since it would directly encourage confidence in commercial transactions between countries that import technologies and foreign companies holding modern technology. iprs protect industrial and commercial creativity against imitation; therefore, there is a promise for the transfer of technology to developing projects. iprs also enhance the market value of small projects due to their ability to produce quality goods and enhance their brand; this is best illustrated in the case of amazon. from its inception as a small online bookstore, it has transformed into a leading global brand with an estimated worth of $220.79 billion (parr, 2018). licensing foreign technologies includes small innovative projects which contribute to training and developing local workers. this enables the transmission of expert knowledge from developed countries to aid its localization along with skilled workers which would lead to exports and a positive impact on the national economy. methodology iprs are essential to modern progress because they guarantee the effective use of innovations to create monetary income, particularly when related to smes. by concentrating on safeguarding iprs throughout all the various forms, these rights can greatly assist and spur smes to raise their production abilities and make them more competitive both in the home market and abroad. the benefits and impacts of giving industrial property right such priority are seen in the promotion of innovation, improvement of market position, and access to global markets—all benefitting economic growth in general. estimation techniques this research employs a descriptive and analytical approach to examine data and indicators related to intellectual and industrial property protection laws in several arab countries, as well as the number and scale of smes within these countries. the first section outlines the theoretical framework, covering the concepts and types of intellectual property and smes. the second section explores the relationship between property rights and smes, assessing how these rights can support and foster the development of such enterprises. the third section examines the current state of intellectual and industrial property and its role in advancing smes in selected arab countries. empirical evaluation protecting industrial property and its role in medium projects in arab countries most arab nations have made great advances in the implementation of iprs laws, particularly those which were established during the period of foreign domination prior to independence. for example, lebanon enacted the law on industrial property in 1942; bahrain did the same for industrial designs and patents in 1955, and kuwait in 1958. the objective of these early laws was mainly to regulate commercial or international relationships. for instance, ipr laws in lebanon were created during the french mandate period in 1924. bahrain chose the british patent law of 1949 and modified it in 1977 after independence. many arab and gulf states have reformed these laws according to their local requirements over time, with updated legislation pertaining to industrial property, patents, and industrial design developed between the 1950s and 1970s. egypt passed ipr legislation in 1949; libya issued its version in 1959; iraq follows this as late as 1970, and sudan enacts its version two years later among many others. some countries saw membership in the wto as pivotal to strengthening ipr protection; however, several arab countries signed on to the trips agreement mainly to lower trade barriers, stimulate industrial innovation, and protect intellectual property. an indicator for assessing a country's ability to protect property rights ranges from 0 to 10, with higher scores indicating better protection. according to recent data, the uae leads arab countries with a score of 6.79, followed by qatar at 6.51, and then oman and saudi arabia. on a global scale, the uae ranks 38th out of 139 countries, making it the top performer in the arab world in terms of innovation as shown in figure 1. the drop-in oil prices have motivated many gulf countries to focus on economic diversification, and ipr protection has become central to this shift. while patents offer robust legal protection, they can be burdensome for small and emerging businesses, compounded by the lack of a strong judicial system to enforce such protections. in most arab countries, universities play a central role in conducting scientific research and generating iprs. however, one of the primary constraints on innovation and creativity is the weak link between academic institutions and industrial sectors. for instance, in egypt, the egyptian patent office is affiliated with the academy of scientific research, the nation's key institution for innovation and technology. egypt is home to over 400 research centres funded by both public and private sectors. despite this, egypt ranked 117th out of 137 countries in 2018 for cooperation between universities and industry in research and development. in 2019, the country ranked 100th out of 129 countries in the world innovation index (otman, 2021). in asia, however, there has been significant growth in intellectual property rights, with the continent accounting for about a third of the global activity in patent and trademark filings. in 2020, global filings increased by 6.1%, agbioforum, 26(2), 2024 | 82 al bermani et al — the role of industrial intellectual property rights in supporting small and medium enterprises in arab countries trademark filings rose by 13.7%, and industrial design filings grew by 2%. innovation enhances productive efficiency, which leads to greater output. the resulting revenues then fund further research and development, thus promoting technological advancement. consequently, intellectual property rights policies and knowledge are crucial in demonstrating a country’s innovative capacity. the types and classifications of industrial property rights applications are outlined in table 1. moreover, table 1 demonstrates that applications for industrial property rights have increased across most arab countries between 2018 and 2021, particularly in the fields of trademarks and industrial designs. saudi arabia, egypt, the uae, and algeria lead in the number of patents, reflecting the adoption of strategies focused on research, development, and the general support of innovation and creativity. figure 1: property rights indicator for 2022 (world ranking of arab countries. table 1: number of industrial property rights application according to their types for some arab countries (2018-2021). state patents trademarks industrial designs 2018 2021 2018 2021 2018 2021 egypt 2,255 2,224 35,562 ---2,812 --- jordan 133 347 7,375 ---49 129 uae 1,783 2,423 18,450 ------972 bahrain 230 329 12,500 14,132 84 1,161 algeria 673 849 15,857 20,372 1,418 1,161 saudi arabia 3,399 3,979 31,892 38,130 917 1,400 the sectoral structure of small and medium projects and the role of innovation in arab countries smes have gained significant importance in institutional reform programmes and the promotion of innovation and technological development in arab countries. this is particularly evident in their growing numbers and their contributions to economic output and unemployment reduction. in several arab countries, smes account for approximately 90% to 99% of all businesses operating in the formal sector. small projects represented approximately 5.8% of the total, while medium projects accounted for about 0.5%, as shown in figure 2. these projects contributed around 82% of innovations, particularly in countries like the uae, saudi arabia, and egypt, which have actively promoted a knowledge-based economy and innovation. in the uae, smes have embraced information and communication technologies, with 98% of projects having internet access in 2017, and 47% using electronic marketing. these projects also organise annual programmes to stimulate innovation among youth and support them with both internal and external funding sources. in egypt, the innovation support fund was established in 2018 with a capital of one billion egyptian pounds to support innovative projects, alongside an expansion into financial and digital technologies. as a result, smes have increasingly sought patents, trademarks, and industrial designs to enhance their growth and success. 128 122 111 94 76 70 55 51 43 38 35 32 26 22 0 20 40 60 80 100 120 140 yemen mauritania lebanon algeria tunisia egypt morocco kuwait jordan bahrain saudi arabia oman qatar uae property rights index 2022 (global ranking of arab countries) agbioforum, 26(2), 2024 | 83 al bermani et al — the role of industrial intellectual property rights in supporting small and medium enterprises in arab countries figure 2: number of small and medium projects in several arab countries 2019. in terms of sectoral distribution, the services sector accounted for 60% of the total number of small and medium projects in saudi arabia as shown in table 2, lebanon, uae, and jordan, followed by the industrial sector at 28%, and the foreign trade sector. additionally, many of the goods produced by these projects successfully reached foreign markets, indicating that their products possess strong competitiveness. this high competitiveness may reflect the creative or innovative capabilities that support these projects' ability to compete internationally, despite their relatively small number. small and medium projects play a crucial role in generating job opportunities and reducing unemployment. their contribution to employment ranges between 10% and 49% in several arab countries, including saudi arabia, qatar, jordan, iraq, uae, morocco, and tunisia. table 2: the most important sectors and markets in which small and medium projects are concentrated. state sector target market jordan domestic trade, industry, services, construction and transportation 60% internal markets and 40% external markets kuwait internal trade and services the interior is larger than the exterior lebanon wholesale trade, manufacturing, construction and communications internal and to a lesser extent external morocco trade and manufacturing internal and externa saudi arabia internal trade and services internal challenges facing the activation of iipr and their support for small and medium projects in arab countries the ability to enhance the environment for smes to generate new job opportunities is influenced by a range of political, economic, and social factors, which in turn impact the growth and productivity of these projects. these factors can also create challenges, particularly in the absence of a clear strategy for iprs and the weak management of these rights, which negatively affect innovation and technological progress. despite steps taken by many arab nations to enhance the regulatory environment for iprs, their willingness and ability to enforce such policies are rather weak. this can be attributed to several reasons: 1. unavailability of adequate funds, human resources, and expertise. 2. failure of laws and legislation in drafting and implementation. 3. inadequate [training and qualification of personnel. 4. lack of transparency and poor national and international coordination. such problems have also been due to low investment in research and development. figure 3: percentage of spending on research and development in some arab countries. 0 0 0 0.10% 0.10% 0.20% 0.30% 0.50% 0.50% 0 0.001 0.002 0.003 0.004 0.005 0.006 mauritania lebanon yemen bahrain kuwait oman jordan algeria qatar none none none agbioforum, 26(2), 2024 | 84 al bermani et al — the role of industrial intellectual property rights in supporting small and medium enterprises in arab countries figure 3 shows that most countries have low research and development (r&d) expenditures as a percentage of gdp. in addition, the culture surrounding ip is weak and awareness campaigns are needed to educate consumers about the adverse effects of counterfeiting and commercial fraud and promote greater respect for ip, especially in the arab region. these challenges are due to the economic and political instability faced by many arab countries, which has led to an outflow of talent and qualified professionals, further undermining the efficiency of some projects. in addition, the lack of commercial channels and limited growth opportunities have led to the relocation of some local innovation projects abroad. to address these issues, arab countries must establish a sound ip regulatory framework, prioritize investment in r&d, and move towards a knowledge-based economy. this change should be accompanied by efforts to promote technology transfer and encourage creative thinking, which will ultimately contribute to economic growth in the arab region. conclusions and recommendations government support is also a key factor in the proper enforcement of ipr and industrial laws. most violations of industrial and intellectual property rights occur due to mismanagement in government premises rather than weak legislation. most arab countries have low expenditures on research and development and ipr indices because of insufficient financial and legal backing. there exists a conceptual link between the protection of industrial property and the productivity in the case of small and medium projects robust in developed countries remains weak in developing and arab countries to propel economic development, protection of intellectual and industrial property rights is efficiently secured some arab countries such as the uae, algeria, egypt, and saudi arabia have links between industrial property rights and small projects but they still face problems due to political instability mismanagement among them and lack of government support. it should be essential to place r&d in industrial property rights and support advanced, innovative product acquisition. increasing the cultural awareness of the importance of industrial property rights, financial backing, and encouraging smes to perceive them as valuable assets is a step toward the process. setting up offices under intellectual and industrial property rights for handling cases and disputes will lead to a much faster technological development. development in productive projects. this will not only provide industries but also bring about the opportunity for technologically advanced nations to transfer modern technology to developing countries along with protective 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https://doi.org/10.5539/ijbm.v16n5p55 http://doi.org/10.1017/9781108908009 https://doi.org/10.1177/1024529420964723 https://doi.org/10.1177/1024529420964723 https://hdl.handle.net/11540/1260 https://hdl.handle.net/11540/1260 https://doi.org/10.1016/j.enpol.2022.113127 https://hdl.handle.net/11511/15887 https://doi.org/10.3389/fpsyg.2022.842646 https://doi.org/10.3389/fpsyg.2022.842646 https://www.pearson.com/en-us/subject-catalog/p/financial-management-principles-and-applications/p200000006429/9780136879848 https://www.pearson.com/en-us/subject-catalog/p/financial-management-principles-and-applications/p200000006429/9780136879848 https://www.pearson.com/en-us/subject-catalog/p/financial-management-principles-and-applications/p200000006429/9780136879848 https://www.pearson.com/en-us/subject-catalog/p/financial-management-principles-and-applications/p200000006429/9780136879848 agbioforum, 26(2): 31-42. © 2024 agbioforum elrayah & mirzaliev financial risk management and firm size financial risk management and firm size: role of environmental, social, governance (esg) and leverage ratio musaddag elrayah* department of management, school of business, king faisal university, p.o box: 400, al-ahsa, 31982, saudi arabia. email: melrayah@kfu.edu.sa sanjar mirzaliev research and innovations department, tashkent state university of economics, uzbekistan. email: s.mirzaliev@tsue.uz the research aimed to test the moderating impact of firm size on the relationship of environmental, social, and governance, financial decisions, and financial risk management of listed companies in saudi arabia. the longitudinal panel data was collected from 2016 to 2024 of listed companies in the saudi stock exchange. used pooled, random, and fixed effects models to test the study hypothesis. the panel data results show that environmental, social, and governance overall and its dimensions have a positive and significant impact on the financial risk management of listed companies in saudi arabia. financial leverage also has a positive and significant impact on financial risk management. moderating effect results also show that environmental, social governance and financial risk management relationships are positively and significantly moderated by firm size. firm size also positively and significantly moderated between financial leverage and financial risk management. the study with the significant moderating effect of the firm size is considered to be a major contribution of the study with the extended model of environmental, social, and governance, financial leverage, and financial risk management in the context of saudi arabia. the study with the significant findings also provides valuable recommendations for policymakers and business leaders to promote sustainability and avoidance strategies risk in saudi arabia’s listed firms that could support the diversification and long-term stability of the country’s economy. keywords: environmental, social, financial risk management, firm size introduction financial risk management is a key element of organizational stability, aimed at identifying, measuring, and mitigating uncertainties that may negatively impact financial performance and pricing (chan & wong, 2015). effective risk management is essential to protecting the company's assets, ensuring compliance with regulatory standards, and maintaining investor confidence (santomero & babbel, 1997). handling geopolitical pressures, technology internal disturbances, and other external shocks requires organizations to anticipate and manage potential risks to minimize their negative effects (faisala & hasanb, 2020). by establishing a strong risk management strategy, companies could better anticipate risk, make informed decisions, and maintain resilience in the face of financial uncertainty (yiu et al., 2020). in recent years, integrating environmental and social governance (esg) principles has been increasingly recognized as an approach to improving financial risk management (kuzmina et al., 2023). esg practices organizations have identified and mitigated risks associated with environmental sustainability, and social responsibility (landi et al., 2022). by adopting these practices, companies not only improve their risk management capabilities but also enhance their reputation and long-term value creation. empirical research shows that companies with strong esg commitments tend to exhibit lower financial volatility, lower costs of capital, and improved risk-adjusted returns (cagli et al., 2023). in addition, compliance with esg standards helps companies meet emerging regulatory requirements and mitigate risks related to climate change, resource scarcity, and social inequality, all of which are key in a comprehensive risk management framework (cinciulescu, 2024). financial leverage and financial risk management relationships have also been tested in the extant relationship. companies with financial leverage play an important role in shaping a company's risk management. companies with favorable market conditions may gain more return but this could also increase financial risk, especially in times of market pressure (kalash, 2023). if the organization wants to gain effective financial risk management then the optimal level of return could be provided through the proper financial leverage (kramoliš & dobeš, 2020). companies with high levels of equity are more susceptible to financial distress. thus, managing leverage is essential to keep the economy viable, avoid financial distress, and reduce the impact of adverse market dynamics (chen et al., 2020). research confirms that prudent leverage management helps firms align capital structure and risk tolerance with both strategic objectives, reducing the likelihood of severe financial shocks (alabdullah & hussein, 2023). in another study, authors also suggest that financial leverage control in the organization also helps to minimize financial risk management (holler, 2013). these previous studies emphasized that financial leverage and egd practices are important factors that helps to control financial risk management. therefore, this study focused on esg practices, financial leverage and their impact on financial risk management. firm size is an important factor affecting the adoption mailto:melrayah@kfu.edu.sa mailto:s.mirzaliev@tsue.uz agbioforum, 26(2), 2024 | 32 elrayah & mirzaliev financial risk management and firm size and effectiveness of esg practices, which in turn enhances investment risk management. larger firms typically have more resources, wider stakeholder networks, and more complex infrastructure to implement comprehensive esg strategies (nuru et al., 2024; osuji, 2023). research shows that companies with the necessary market and resources can effectively incorporate an esg strategy which in turn helps to improve financial performance and reduce volatility (galbreath et al., 2024). through leveraging their scale, larger organizations could drive systemic improvements in esg practices, further strengthening their financial risk management capabilities. these previous studies indicated that financial firm improves esg practices and helps to control the debt level which in turn helps to manage financial risk management. therefore, the current study emphasizes the moderating effect of firm size among esg practices, financial leverage, and financial risk management practices. extant studies on esg practices, financial leverages, firm size, and financial risk management still have various gaps. for example, previous studies have been conducted on esg practices and financial risk management (kuzmina et al., 2023; liu et al., 2024; shah et al., 2024) but these still have inconsistent findings. in other words, the financial leverage and financial risk management relationship is also not clear (arhinful & radmehr, 2023; kalash, 2023). furthermore, from the variable perspective, many studies have focused on individual aspects such as financial leverage, firm size, and esg integration but these variables have not been conducted in one study, these studies emphasized that there should be a more comprehensive model which is needed that examine their joint influence on risk management outcomes at the same time (giese et al., 2021). furthermore, there are also sectoral-specific differences where most studies focus on financial services and large-scale industries, often neglecting critical sectors such as manufacturing, especially in developing countries, such as the saudi arabian manufacturing sector (arhinful & radmehr, 2023; kalash, 2023). furthermore, inconsistencies regarding the impact of esg practices and financial returns on financial stability and effective risk management indicate a lack of consensus among different empirical studies (tk & jasmin, 2024). furthermore, although esg activities have been identified as an important predictor of firm size, less attention has been paid to its role in improving financial and risk management outcomes (buallay et al., 2021). this is particularly important for saudi arabia’s listed firms, which face unique business challenges, highlighting the importance of formalized research in this context (umar et al., 2024). therefore, to address previous gaps, research aimed to test the moderating impact of firm size on the relationship of environmental, social, and governance, financial decisions, and financial risk management of listed companies in saudi arabia. the study after fulfilling’s previous gaps contributed in several ways. first, it addresses important sectoral specific differences through saudi arabian listed companies which have been relatively unexplored compared to financial sectors. given the unique challenges and growth opportunities for listed companies in saudi arabia, this context-specific insight is essential. second, the study examines the joint impact of financial leverage, esg practices, and firm size as moderating variables on financial risk management which provides a comprehensive understanding of how these factors interact to achieve organizational resilience and the impact of prevention and risk mitigation strategies. finally, research results also provide valuable insights for managers, policymakers, and investors in saudi arabia to understand that integrating esg practices into corporate strategy not only improves sustainability but also becomes a powerful tool for embedding financial risk management strategies den also. companies that embrace esg policies are better positioned to reduce financial and operational risk. the study is further divided into five chapter’s literature review, research methods, data analysis, and results, and in the last discussion and conclusion. literature review theoretical framework environmental social governance (esg) and financial risk management relationship is important that could increase the modern corporate strategy for firms stability (bertolotti, 2020). esg consisted of various practices which provide a platform for the organizations long term sustainability (sharma, 2023). companies which have more esg into their strategies into their operations can improve their risk profiles (svoboda, 2023). for example, environmental policies such as reducing emissions and using sustainable materials can reduce regulatory risks, lower operating costs, and protect against climate-related risks (cagli et al., 2023). socially responsible practices, such as fair labor practices and community engagement have enhanced the company’s reputation and mitigated reputational risks (cagli et al., 2023). integrating esg factors into frm strategies is a comprehensive approach to managing market volatility and maintaining business flexibility (de castro sobrosa neto et al., 2020). financial leverage in a company’s operations also plays an important role in shaping a company’s risk strategy. favorable market conditions may increase returns but they also increase financial risk, especially during periods of recession or market pressure (kalash, 2023). effective risk management requires an optimal level of financial leverage will be provided to balance risk and reward (kramoliš & dobeš, 2020). the study framework which is predicted in figure 1 on the relationship of esg, financial leverage, firm size, and financial risk management is supported by the stakeholder theory and the resource-based view (rbv) (kumar, 2023; shah et al., 2024). the self-relevant theory suggests that firms should account for the needs of different stakeholders. esg policies aligned with stakeholders’ interests not only enhance goodwill but also mitigate legal, reputational, and operational risks which agbioforum, 26(2), 2024 | 33 elrayah & mirzaliev financial risk management and firm size helps to reduce overall financial risk (talan et al., 2024). resources and capabilities such as green technology, and corporate culture with ethical, and social innovation create competitive advantages that are difficult for competitors to replicate (lima rua et al., 2023). this theoretical relationship is confirmed by empirical evidence; firms with higher esg ratings exhibited lower financial volatility and lower cost of capital, indicating that strong esg integration is a valuable tool for increasing and maintaining financial stability risk management (giese et al., 2021; shah et al., 2024). the role of firm size in the relationship between esg, financial leverage, and financial risk management adds additional complexity and variability to this relationship. larger firms with their greater resources and broader markets often find it easier to adopt esg policies than smaller firms (osuji, 2023). they are increasingly under regulatory scrutiny and face greater expectations from stakeholders, prompting them to implement comprehensively (bolibok, 2024). research suggests that the positive relationship between esg performance and financial risk mitigation is more pronounced in larger firms, as they can leverage higher economies of scale and use their market influence to develop esg-driven risk management control it carefully (akomea-frimpong et al., 2021; gibbon et al., 2023; guenster et al., 2022). thus, firm size acts as an important moderating factor, determining the extent to which esg practices, and financial leverage influence a firm's financial risk management. these theoretical relationships are predicted in following figure.1 below. figure 1: research framework. empirical review and hypothesis development environmental social and governance and financial risk management the relationship between environmental, social, and governance (esg) practices and financial risk management has been the subject of extensive research due to its implications for corporate stability and sustainability. for instance, huang et al. (2024) conducted a study and found a positive and significant relationship between esg and financial risk management and they further concluded that the integration of esg factors reduces operational risk. iliadis et al. (2024) further emphasized that companies with comprehensive esg strategies have better financial risk profiles due to increased transparency and governance practices. in other contexts, social aspects of esg practices, including fair employee practices and community involvement have been found to reduce reputational risk and enhance customer loyalty (singh et al., 2021). in contrast, other studies found that esg could increase the short term costs that could increase financial burden on the firms (haleem, 2022) which is turn could increase financial risk management. despite these costs, the long-term benefits of integrating esg into risk management often exceed the initial investment, resulting in a positive impact on financial risk management (kuzmina et al., 2023). thus, there is important empirical support linking esg practices to improved financial risk management. despite these positives, some studies suggested that esg adoption can involve severe short-term costs which can put financial pressure on a firm initially. shah et al. (2024) further argued that in the transition to broader esg practices, typically consisting of infrastructure, training, and capital investment programs types of compliance occur which can affect short-term profitability. however, these challenges are often outweighed by long-term benefits. ragazou et al. (2024) found that companies that focus on physical esg issues and those most relevant to their businesses perform better financially and manage risk over time. this suggests that the formal integration of esg rather than compliance alone is key to meaningful risk reduction. these previous studies have shown that esg plays an important role in increasing financial risk management. therefore, a study has formulated the following research hypothesis below, h1: firms with higher levels of esg practices significantly improved financial risk management. h3a: firms with higher levels of environmental practices significantly improved financial risk management. h3b: firms with higher levels of social practices significantly improved financial risk management. h3c: firms with higher levels of governance practices significantly improved financial risk management. financial leverage and financial risk management financial leverage or the use of debt to finance a company’s operations also plays an important role in shaping a company’s risk strategy. favorable market conditions may increase investment returns, but they also increase financial risk, especially during periods of recession or market pressure (kalash, 2023). effective risk management requires an optimal level of financial return will be provided to balance risk and reward (kramoliš & dobeš, 2020). companies with high levels of equity are more susceptible to financial distress. thus, managing leverage is essential to keep the economy viable, avoid financial distress, and reduce the impact of adverse market dynamics (chen et al., 2020). research confirms that prudent leverage management helps firms align capital structure and risk tolerance with both strategic objectives, reducing the likelihood of severe financial shocks (alabdullah & hussein, 2023). in another study, authors also suggest that financial leverage control in the organization also helps to minimize agbioforum, 26(2), 2024 | 34 elrayah & mirzaliev financial risk management and firm size financial risk management (holler, 2013). these previous studies emphasized that financial leverage and esg practices are important factors that help to control financial risk management. another empirical study (kalash, 2023) also found that financial leverage has a significant impact on financial risk management. they also further argued that the relationship between financial leverage and financial risk management could be tested in another study in another country. thus, based on the previous following research hypothesis has been formulated below, h2: firms with effective financial leverage significantly improved financial risk management. moderating effect of firm size the effectiveness of esg practices in financial risk management may vary depending on the firm's size. larger companies with more resources, more knowledge, and more public visibility benefit the most from esg adoption. (bolibok, 2024) further noted that large enterprises often integrate comprehensive esg strategies, which can have significant risk mitigation benefits. the availability of sufficient capital allows these companies to invest in esg initiatives such as improved environmental stewardship programs, and corporate social responsibility (csr) (gidage et al., 2024). this view is supported by risal et al. (2024) who argue that esg practices by large firms tend to reduce the cost of capital and improve financial performance through increased economies of scale and due to market effects. conversely, smaller organizations may face challenges when implementing esg practices, such as limited financial resources and human resources, which may reduce the effectiveness of esg as a risk management tool (bolibok, 2024; lee & koh, 2024). these companies may also have trouble staying compliant with stringent esg regulations, creating significant operational risk. bolibok (2024) found that smaller companies often lack of the capacity to effectively implement esg practices, leading to mixed results in risk management. however, it falls one day, small businesses that are adaptive and flexible aligned with their risk profiles may lead to the adoption and customization of new esg strategies (bissoondoyalbheenick et al., 2023). in contrast, large firms may face bureaucracy that may slow esg adoption or weaken its impact (peliu, 2024). ragazou et al. (2024) found a positive and significant impact on esg and risk management. they further argued that the relationship between esf and financial risk management could be addressed with moderating or mediating variables. further relationship between financial leverage and financial risk management is also not clear. a previous study kalash (2023) found a significant impact of financial leverage on financial risk management. they also suggested that studies could be conducted with other relationships. firm size could be a potential moderating variable between financial leverage and financial risk management. the firm size between financial leverage and financial risk management indicates that larger firms are better equipped to manage risks associated with higher leverage (giese et al., 2021). this suggests that bigger companies have more resources and infrastructure to implement effective risk management strategies, even when leveraging debt. the results are supported by the following study (ochieng’wayongah & mule, 2019) where financial leverage and financial performance relationship significantly moderated by firm size. therefore, seeking this, a study has formulated the following research hypothesis below with the moderating effect of firm size. h3: firm size significantly moderates between esg practices and financial risk management h3a: firm size significantly moderates between environmental practices and financial risk management. h3b: firm size significantly moderates between social practices and financial risk management. h3c: firm size significantly moderates between governance practices and financial risk management. h4: firm size significantly moderates between financial leverage and financial risk management. research methodology the research aimed to empirically test the moderating effect of firms on the relationship of esg dimensions, financial decisions, and risk management of listed companies in saudi arabia. to get this objective, the researchers selected the quantitative research approach. this research approach is considered to be good for the study where testing the study hypothesis is main based on extant theory (hirose & creswell, 2023). this approach also uses practical statistical techniques to ensure high reliability and generalizability, making it suitable for analyzing complex economic data and providing analytical insights on the robustness of observed increases (panda & mohapatra, 2024). further, data was collected in different time frames in different companies, therefore longitudinal panel data research design was adopted for this study. this research design helps to capture the changes over the period which allows for analysis of cause-and-effect relationships and long-term trends while reducing recall bias. it offers more comprehensive approach through tracking the same subjects in various time frames (letnes et al., 2023). therefore, the current study has used the longitudinal research design. population and data sources the research aimed to test the moderating effects of firm size among esg dimensions, financial decisions, and financial risk management. the initial sample included all companies listed on the saudi stock exchange. to get the study's objectives, only companies with esg ratings available on the bloomberg database and complete data for other relevant variables were considered. as a result, after filtering out companies with incomplete data and removing outliers, the final sample consisted of 346 company-year observations from 48 companies covering the period from 2016 to 2024. given that corporate governance reforms were implemented in 2017, the sample was divided into two equal timeframes. time agbioforum, 26(2), 2024 | 35 elrayah & mirzaliev financial risk management and firm size frame from 2016 to 2024 offered data from both before and after the introduction of saudi vision 2030, which brought a greater societal focus to environmental issues. data for all variables, including aggregated esg scores, as well as specific environmental, social, and governance scores and control variables, were sourced from the bloomberg database. variable measurement and model specification the study objective consisted of four types of variables. financial risk management (frm) is the dependent variable, and financial leverage (fl), and environmental and social governance (esg) are the independent variables. firm size is the moderating variable and lastly, return on assets (roa), and firm age (age) are the control variables. these variables are depicted in table.1 below. table 1: variables measurement. variable name measurement/proxies source size measured by the natural logarithm of total assets (ghazalat & alhallaq, 2024) lev measured by total debt to total assets (ghazalat & alhallaq, 2024) frm z-score (citterio & king, 2023) age measured by the natural log of company age (citterio & king, 2023) esg score measured based on the bloomberg database; scores range from 0 (lowest disclosure) to 100 (full disclosure). proxies include environmental (env): energy consumption, emissions, waste management; social (soc): employee relations, community impact, diversity; governance (gov): board structure, executive pay, shareholder rights, and independent directors. (he et al., 2023) roa net income to total assets. (ghazalat & alhallaq, 2024) econometric models the research aimed to test the moderating effects of firm size among esg dimensions, financial decisions, and financial risk prediction in risk management practices. to evaluate the proposed hypotheses, we formulated four models which are described below. testing the direct impact of the predictor variable esg and its dimensions on the dependent variable frm serves as the examination for our first hypothesis (h1) and h1a to h1c and h2, which is expressed in equation (1) and 2. frmi,t = β0 + β1 esgi,t + β2roai,t + β5 agei,t,+ εi,t (eq.1) frmi,t = β0 + β1 ens,t + β2soici,t + β3gov,t + β4lev,t + β5 agei,t,+ β6roa+ εi,t (eq.2) where frm represents financial risk management, esg is measured over the environmental social governance score, ens shows environmental, soic represents social, gov shows governance, lev shows leverage, age represents firm age, and lastly roa represents return on assets. further, to test the moderating effect of firm size in the direct relationship of esg, lev, and frm, we integrated the moderator and interaction terms into the equation. this formed the basis for testing our second hypothesis (h2), represented by equation (5) as outlined below. frmi,t = β0 + β1esgi,t + β2 sizei,t*esgi,t + β3roa,t + β4agei,t + εi,t (eq.3) frmi,t = β0 + β1 sizei,t* ens,t + β2 sizei,t*soici,t + β3 sizei,t*gov,t + β4 sizei,t*lev,t+ β5 agei,t,+ β6roa+ εi,t (eq.4) descriptive statistics table 2 presents descriptive statistics for esg (environmental, social, and governance) disclosures across various industries, focusing on the number of observations, companies, and mean disclosure values. communication services has 35 observations across 5 companies, with a mean disclosure value of 20.34. consumer discretionary and consumer staples have similar numbers of observations and companies (22 and 20 observations, with 4 companies each) but show different mean values of 18.72 and 28.50, respectively. healthcare and industrials each have 12 and 10 observations with a mean of 14.90 and 19.75, respectively. materials lead in disclosure values with a mean of 30.10 from 60 observations across 7 companies. real estate and utilities, with 20 and 12 observations respectively, show mean disclosures of 15.00 and 26.50. this overview highlights the variance in esg disclosure levels across sectors, reflecting industry-specific dynamics and potentially differing regulatory or stakeholder pressures. the above results are predicted in table 2 below. table 2: descriptive statistics values for environmental, social, and governance disclosures. industry number of observations number of companies mean communication services 35 5 20.34 consumer discretionary 22 4 18.72 consumer staples 20 4 28.50 energy 25 4 27.80 financials 130 15 19.45 healthcare 12 2 14.90 industrials 10 2 19.75 materials 60 7 30.10 real estate 20 3 15.00 utilities 12 2 26.50 table 3 predicted values show descriptive statistics of the variables. in the results, frm shows a mean value of 0.95 along with a standard deviation of 0.35 which indicates a moderate variability in the mean which ranges from 0.05 to 1.7. lev (leverage) displays a mean of 23 with significant dispersion (sd = 19.8), spanning from 0.2 to 81, reflecting notable differences in financial leverage across observations. esg (environmental, social, governance) disclosure has a mean of 20 with a relatively high spread (sd = 11.7), ranging from 0.05 to 61.5, highlighting variance in disclosure levels. the env variable (environmental aspect) has a mean of 12.5 with broad dispersion, while soc (social aspect) and gov agbioforum, 26(2), 2024 | 36 elrayah & mirzaliev financial risk management and firm size (governance aspect) display means of 14.5 and 47.5, respectively, with corresponding ranges reflecting sectoral and regulatory differences. size averages at 10.7 with low variability, indicating company size clustering around the mean. finally, age has a mean of 1.5 years with modest variability, reflecting a relatively stable distribution in company age across observations. the above results are predicted in table 3 below. table 3: descriptive statistics. variable n mean std. dev. min max 25th percentile median 75th percentile risk 309 0.95 0.35 0.05 1.70 0.85 1.00 1.2 lev 309 23.0 19.8 0.20 81.0 5.50 16.5 39 esg 309 20.0 11.7 0.05 61.5 11.5 16.8 26 env 265 12.5 16.6 0.10 81.5 0.50 3.20 20 soc 303 14.5 13.2 0.20 62.0 6.50 12.0 22 gov 304 47.5 18.0 0.50 87.5 40.0 45.0 55 size 309 10.7 0.70 9.30 12.6 10.3 10.8 11.3 roa 309 4.01 6.70 -14.0 36.8 1.10 2.10 5.0 age 309 1.50 0.35 0.50 2.00 1.20 1.60 1.7 source: author’s estimations diagnostics tests to test the study hypothesis, it is necessary to incorporate various diagnostics test which shows in panel data an important assumption for proper econometric analysis. first, the stationarity test (levin-lin-chu panel unit root test) shows that all models are stationary at the first end, with p-values less than 0.05, indicating that the null hypothesis of a unit root is rejected ho. this ensures that the data are not trends or random walk means that can lead to spurious results, which is important for a valid time-series analysis concept (levin et al., 2002). second, the panel cointegration test (pedroni test) reveals significant p-values (less than 0.05) in all models, indicating a long-run equilibrium relationship between the variables. this suggests variables are integrated, which means that they move together in time, to ensure. the robustness of the regression analysis is ensured (pedroni, 2004). third, the normality test shows p-values greater than 0.05, indicating that the residuals from the models are normally distributed, which is important for the validity of hypothesis testing and model estimation (thadewald & büning, 2007). moreover, with an autocorrelation with pvalues greater than 0.05, indicating no significant autocorrelation in the residuals. this is important because autocorrelation will lead to biased standard errors and unreliable statistical tests (thadewald & büning, 2007). finally, the heterogeneity test (breusch-pagan test) also yields p-values greater than 0.05, indicating that the residuals exhibit constant variation (homoscedasticity). this confirms the assumption that the variance of the errors does not change at the findings are valid, which is important to ensure reliable coefficient estimates and standard errors ( (herwartz, 2006). the above results are predicted in table 4 which shown that all diagnostics models fulfill the requirements of the diagnostics model. table 4: diagnostics test. test/model model 1 (combined esg) model 2 (separate esg dimensions) model 3 (combined esg + leverage + moderator) model 4 (separate esg + leverage + moderator) stationarity (panel unit root test levin-lin-chu) p-value = 0.041 (at 1st diff) p-value = 0.028 (at 1st diff) p-value = 0.017 (at 1st diff) p-value = 0.019 (at 1st diff) panel cointegration test (pedroni) p-value = 0.002 p-value = 0.0017 p-value = 0.0005 p-value = 0.0004 normality test (skewness/kurtosis) p-value = 0.331 p-value = 0.299 p-value = 0.358 p-value = 0.341 autocorrelation (durbin-watson) p-value = 0.405 p-value = 0.391 p-value = 0.376 p-value = 0.384 heteroscedasticity test (breuschpagan) p-value = 0.267 p-value = 0.197 p-value = 0.289 p-value = 0.247 source: author’s estimations correlation matrix table 5 results show the correlation matrix of the study. this table shows that financial risk management (frm) significantly correlated with other exogenous and control variables. notably, frm demonstrates a strong positive correlation with return on assets (roa) and company age, indicating that higher profitability and longer operational history tend to improve financial risk management practices. company size also exhibits a strong positive correlation, suggesting that larger firms have more robust risk management. esg disclosures and their components namely environmental (env), social (soc), and governance (gov) scores show moderate positive correlations with frm, highlighting their influence but at a lesser level compared to profitability, size, or age. leverage (lev) is moderately and positively correlated with frm, suggesting that firms with higher debt levels may engage more actively in managing financial risk. the above results are predicted in table 5 below. table 5: correlation matrix. variable risk lev esg env soc gov size roa age frm 1 lev 0.635 1 esg 0.652 0.681 1 env 0.521 0.498 0.71 1 soc 0.574 0.538 0.756 0.748 1 gov 0.512 0.851 0.732 0.758 0.785 1 size 0.751 0.792 0.782 0.786 0.813 0.522 1 roa 0.812 0.804 0.761 0.795 0.831 0.639 0.351 1 age 0.762 0.723 0.713 0.732 0.762 0.791 0.406 0.518 1 source: author’s estimations agbioforum, 26(2), 2024 | 37 elrayah & mirzaliev financial risk management and firm size hypothesis development after the diagnostics test of the study, is to test the study hypothesis. the hypothesis results are predicted in table.6 below. the panel data results show that firms with enhanced environmental, social, and governance (esg) practices show a significant improvement in their financial risk management. breaking this down, the environmental dimension (h1a) has a coefficient of 0.260 (p = 0.04), showing a positive, significant contribution, while the social aspect (h1b) exhibited a coefficient of 0.290 (p = 0.02). governance (h1c) presented the highest impact among the esg dimensions, with a coefficient of 0.320 (p = 0.01), emphasizing the critical role of governance in reducing financial vulnerabilities. the significant breusch-pagan (bp) test results (p-values < 0.05) justified the use of random effects over the pooled ols model, while the insignificant hausman test results (p-values > 0.05) supported random effects over the fixed effects model. further, financial leverage (lev) also has a positive and significant impact on financial risk management which supports to proposed h2. the moderating effect of firm size on the relationship between esg practices and financial risk management capabilities also showed significant results. for h3, the interaction between esg practices and firm size yielded a coefficient of 0.380 (p = 0.005), indicating a substantial enhancement in financial risk management for larger firms adopting esg strategies. within this moderated effect, environmental practices (h3a) had a coefficient of 0.350 (p = 0.02), social practices (h3b) exhibited a coefficient of 0.390 (p = 0.008), and governance practices (h3c) recorded the strongest effect with a coefficient of 0.430 (p = 0.001). these results demonstrate that the benefits of esg practices are amplified for larger firms due to their capacity to effectively integrate and leverage these initiatives. the significant bp and insignificant hausman test results further confirmed the appropriateness of the random effects model, validating the moderating influence of firm size on esg and financial risk management dynamics. the lev also has a positive and significant effect on frm with the moderating effect of size which supports proposed hypothesis 4. the above results are predicted in table 6. table 6: hypothesis results. thesis pooled ols coefficient (p-value) random effects coefficient (p-value) fixed effects coefficient (p-value) bp test (p-value) hausman test (p-value) supported model h1: esg → frm 0.320 (0.05) 0.290 (0.03) 0.270 (0.08) 0.004 0.15 random effects h1a: ens →frm 0.280 (0.07) 0.260 (0.04) 0.230 (0.09) 0.007 0.212 random effects h1b soic →frm 0.310 (0.03) 0.290 (0.02) 0.275 (0.05) h1c: gov→frm 0.350 (0.02) 0.320 (0.01) 0.300 (0.04) h2: lev->frm 0.3230 (0.03) 0.240 (0.03) 0.310 (0.06) h3: esg (moderated by size) 0.400 (0.01) 0.380 (0.005) 0.360 (0.03) 0.002 0.18 random effects h3a: ens (moderated by size) 0.370 (0.04) 0.350 (0.02) 0.330 (0.06) 0.008 0.141 random effects h3b: soic (moderated by size) 0.410 (0.03) 0.390 (0.008) 0.370 (0.04) h3c: gov (moderated by size) 0.450 (0.02) 0.430 (0.001) 0.410 (0.03) h4: lev (moderated by size) 0.360 (0.04) 0.340 (0.02) 0.320 (0.06) 0.006 source: author’s estimations discussion environmental and social governance (esg) and financial leverage an important indicators for financial risk management because they help to companies mitigate financial and legal risks to ensure risk management. after all, it helps companies mitigate financial, operational, and legal risks to ensure long-term sustainability. through the adoption of esg practices, companies can increase their resilience and investor confidence. larger companies can maximize esg impact by leveraging their products and systems to better implement and maximize these practices. their size allows them to effectively manage risk and influence broader business trends. thus, based on the previous, the study objective is to test the moderating effects of firm size among esg dimensions, financial decisions, and financial risk prediction in risk management practices in listed firms of saudi arabia. panel data results identified the positive and significant influence of esg on the financial risk management of listed firms in saudi arabia. the relationship shows that listed firms of arabia pay greater attention to esg practices in mitigating risk which helps to increase the operational efficiency. the results are supported by the study of (kuzmina et al., 2023; liu et al., 2024) where they found that companies that incorporate esg practices into their core strategies experience improved operational efficiency, lower costs, and investor confidence. benefits from the reform in saudi arabia vision 2030 building growth in terms of a greater emphasis on sustainability, these positive results confirm that integrating esg measures is not just a phenomenon, but rather a necessity for firms to achieve long-term sustainability, stability, and risk mitigation. these findings show that saudi arabian companies should focus on esg practices that could lead to gaining a competitive advantage and also minimizing risk management. on the other hand, environmental practices also have a positive and significant impact on financial risk management. these findings show that the positive and significant effects of environmental practices on financial risk management emphasize the growing importance of sustainability initiatives in the listed firms of saudi arabia. saudi companies that make efforts to reduce their environmental footprint, such as using energy-efficient agbioforum, 26(2), 2024 | 38 elrayah & mirzaliev financial risk management and firm size technologies, reducing waste, and reducing emissions, have greater financial flexibility, and risk is reduced. the results are in line with the study of (liu et al., 2024) who concluded that companies are conscious of environmental management because it directly affects to risk reduction. as global environmental standards become more stringent, therefore saudi arabian firms should actively adopt sustainable practices that will not only reduce regulatory risks but open up opportunity types also to build customer confidence and gain competitive advantage. on the other hand, social practices also has a positive and significant impact on financial risk management. these findings show that initiatives aimed at promoting positive employee practices, ensuring employee well-being, and building strong community relationships are key to reducing financial risks in listed firms in saudi arabia. companies that frequently invest in their employees through appropriate personnel policies, employee engagement programs, and community support programs tend to have lower turnover rates, higher employee morale increases, and higher stakeholder relations. the findings are arguments are supported by the following studies (cagli et al., 2023; liu et al., 2024) where they found that companies with strong social responsibility programs for employees improve productivity, and efficiency, and great benefits are seen in overall flexibility. these previous empirical findings also enforced saudi entrepreneurs' focus on social practices because this positive effect reflects increasing societal expectations of corporate social responsibility, which can translate into tangible financial benefits and improved risk. in the further dimension of esg, governance also has a positive and significant impact on the financial risk management of listed firms in saudi arabia. these strong governance structures featuring transparency, accountability, and effective corporate governance enhance firms’ ability to identify and manage potential risks before they escalate. the result is similar to the findings of (cagli et al., 2023; fu et al., 2024) who reported that firms with strong governance mechanisms had stronger financial results. effective governance ensures compliance, builds stakeholder trust, and sustains a culture of accountability, which collectively provides corporate resilience in an evolving business environment of listed firms in saudi arabia. the findings show that saudi arabian companies with higher debt levels are more likely to implement effective risk management practices. this could be due to the increased pressure from creditors and financial institutions for firms to mitigate risks and ensure stable returns. given the growing emphasis on corporate governance and financial transparency in saudi arabia, firms with higher leverage may prioritize managing financial risks to maintain investor confidence and avoid default. additionally, leveraging debt might incentivize companies to improve their esg practices, especially in governance, to align with regulatory expectations. the findings highlight the importance of debt management strategies in shaping corporate risk frameworks. these results suggest that saudi firms with higher leverage are more likely to develop robust systems to address both financial and non-financial risks. the results are consistent with the study of (arhinful & radmehr, 2023; kalash, 2023). further results show that firm size also has a positive and significant moderating effect on the relationship between esg practices and the financial risk management of listed firms in saudi arabia. this relationship enables the fact that larger firms are getting more benefits from esg adoption and integrating esg decisions broadly and efficiently which is helping to manage their risk. this argument is supported in the context of saudi arabia (sharawi et al., 2024) where they found that saudi companies larger adopters of esg practices proved to be more resilient to market volatility and economic shocks these findings highlight the value of providing scale for use in esg efforts to reduce financial risks. this relationship could not be directly supported by the relevant study because this moderating effect relationship has been tested first time in saudi arabia. interestingly, the moderating effect of firm size was particularly evident for governance practices. larger companies have more strategic and sophisticated governance structures, including board oversight, risk committees, and extensive internal controls. this enables them to better anticipate, respond to, and mitigate financial risk. (muhammad et al., 2024; zaiane & ellouze, 2023) that larger companies with strong governance structures and corporate social responsibility are better equipped to withstand economic uncertainty and adapt to regulatory changes. this suggests that governance and sustainable practices play an important role in esg effective practices available. for saudi entrepreneurs, strengthening governance is an important strategy for increasing economic flexibility and achieving sustainable growth in an increasingly challenging business environment. further results show that firm size also positively and significantly moderates between financial leverage and financial risk management of listed companies in saudi arabia. this moderating effect results show that firm size between financial leverage and financial risk management indicates that larger saudi firms are better equipped to manage risks associated with higher leverage. this suggests that bigger companies have more resources and infrastructure to implement effective risk management strategies, even when leveraging debt. the results are supported by the following study (ochieng’wayongah & mule, 2019) where financial leverage and financial performance relationship significantly moderated by firm size. implications and future directions this study makes several important theoretical contributions to the existing literature. first, it extends the understanding that esg policies not only contribute to the sustainability of a firm but also play an important role in reducing financial and operational risks. this finding provides perspective in the role of esg practices in many aspects of economic risk tolerance. furthermore, the study offers a new perspective on corporate governance by showing that larger firms, with more formal and sophisticated governance structures, are better equipped agbioforum, 26(2), 2024 | 39 elrayah & mirzaliev financial risk management and firm size to identify, manage and exhaust financing under various hazards. these theoretical contributions contribute to the literature by addressing the relative role of firm size, particularly in financial leverage and esg practices, as well as the resources and capabilities of large firms to enable the application and enhancement of esg strategies to reduce exposure to financial risk size of the firm, esg practices, opens the way for further research on the link between finance and risk management. the study could also help other researchers conduct their research with the extended model of firm size as a moderating variable and they can also add another moderating variable to explore new research areas. practically, the findings provide valuable guidance for managers, policymakers, and investors in saudi arabia. the study contributes to a practical understanding that integrating esg practices into corporate strategy not only improves sustainability but also becomes a powerful tool for embedding financial risk management strategies den also. companies that embrace esg policies are better positioned to reduce financial and operational risk and increase their overall competitiveness and long-term viability. a practical contribution to the listed companies in saudi arabia is to recognize that large companies, with their high levels of wealth and complex governance structures, esg practices to effectively manage risks in addition to the feasibility of returns, assessment emphasizes the central role of economic advantage in shaping risk management practices. companies with high levels of debt are likely to benefit from integrating strong governance practices as part of their esg strategy to mitigate the risks associated with leverage. this contribution highlights the importance of focusing on esg practices and leveraging firm size to effectively manage risk, and ensure stability and growth in an increasingly complex business environment. the study with significant findings still has various limitations that could be addressed in further research. first, the research is limited to listed companies in saudi arabia, which could not be generalized to other countries which is potentially limiting the generalizability of the results to other regions or countries with different economic environments or regulatory frameworks. additionally, the study focuses on the moderating effects of firm size but overlooks other potential moderators that could influence the relationship between esg practices and financial risk management. the use of a longitudinal research design, while useful in capturing long-term trends is also a limitation as it may not account for more immediate changes or short-term fluctuations that could significantly affect the results. future research could expand on this study by including firms from different regions or industries, exploring additional moderating variables, and incorporating both short-term and long-term data to provide a more comprehensive understanding of how esg practices and firm characteristics influence financial risk management. conclusion environmental and social governance (esg) and financial leverage are important indicators for financial risk management because they help companies mitigate financial and legal risks to ensure risk management. after all, it helps companies mitigate financial, operational, and legal risks to ensure long-term sustainability. therefore, research aimed to test the moderating impact of firm size on the relationship of environmental and social governance, financial decisions, and financial risk management of listed companies in saudi arabia. the longitudinal panel data was collected from 2016 to 2024. use pooled, random, and fixed effects models to test the study hypothesis. the panel data results show that environmental, social, and governance overall and its dimensions have a positive and significant impact on the financial risk management of listed companies in saudi arabia. financial leverage also has a positive and significant impact on the financial risk management of listed companies in saudi arabia. moderating effect results also show that environmental, social governance, and financial risk management relationships positively and significantly moderated by firm size in listed companies of saudi arabia. firm size also positively and significantly moderated between financial leverage and financial risk management. the study with the significant moderating effect of the firm is considered to be a major contribution of the study with the extended model of environmental, social, and governance, financial leverage, and financial risk management in the context of saudi arabian. the study with the significant findings also provides valuable recommendations for policymakers and business leaders to promote sustainability and avoidance strategies risk in saudi arabia’s listed firms that could support the diversification and long-term stability of the country’s economy. acknowledgement this work was 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email: durgham.ahmed1106@coadec.uobaghdad.edu.iq taiseer mohammed jumaah university of fallujah, iraq. orcid id: https://orcid.org/0009-0003-5282-786x email: taseer.mohammed@uofallujah.edu.iq the primary aim of this study is to explore the integration of artificial intelligence (ai) technologies with management accounting practices and its impact on corporate governance. specifically, it investigates how this integration enhances transparency, supports strategic decision-making, and improves operational efficiency, thus promoting adherence to ethical and professional standards. to test the hypotheses and assess the influence of ai and management accounting techniques on corporate governance, a survey was conducted using a questionnaire distributed to 500 accountants working in iraqi companies listed on the iraq stock exchange. the results suggest that, due to the unique nature of ai implementation, management accountants can utilise ai to analyse data more efficiently, establish robust control systems, and improve the quality of accounting processes. however, the adoption of ai in corporate governance presents complex challenges and wide-reaching implications. corporate governance should be regarded as a dynamic process rather than a static outcome. only organisations that prioritise ethical principles and have a solid foundation in traditional transparency and legal frameworks are likely to fully realise the potential of ai in corporate governance. keywords: artificial intelligence, management accounting, corporate governance, stock exchange. introduction with the advancement of digitalisation, organisations aim to improve both internal management efficiency and compliance with ethical and legal obligations. management accounting techniques, which play a pivotal role in performance evaluation and corporate strategy formulation, form the basis for the integration of ai (chowdhury, 2023; secinaro et al., 2024). ai-driven enterprise solutions can further enhance decision-making processes within organisations. corporate governance is essential in promoting transparency, regulatory compliance, and operational efficiency (chambers, 2005; mustafa & al-nimer, 2018; sanusi, 2015). similarly, the growing significance of ai spans various industries, including accounting (chowdhury, 2023; secinaro et al., 2024). by enabling quicker and more accurate data processing, ai improves the effectiveness of management accounting techniques in supporting strategic decisionmaking. however, traditional management accounting methods, such as cost analysis, budgeting, and financial forecasting, continue to be crucial for monitoring internal performance and ensuring financial compliance. one of the primary challenges in corporate governance among companies listed on the iraq stock exchange (isx) is insufficient transparency and accountability in financial reporting (nahla & obaid, 2024; salehi, ammar ajel, & zimon, 2023). in most companies, internal control is poor and conflicts of interest between board members and shareholders exist (mahmoodi, zalaghi, & aflatooni, 2023). issues such as insider trading and nepotism remain and undermine investor confidence and market integrity. additionally, regulatory authorities fail to rigorously enforce governance regulations. limited disclosure of operational and financial data also prevents investors from objectively assessing corporate performance (hirshleifer & teoh, 2003). minority shareholders often have trouble securing protection due to the dominance of family-owned or government-affiliated companies. additionally, the legal framework and inconstant regulatory oversight hinder good corporate governance. consequently, foreign investors remain wary of investing in isx listed companies and limit industry expansion. enhanced corporate governance with stricter regulations and more efficient enforcement is thus required to help economic stability and investor confidence. the question is how ai and management accounting may be combined to increase transparency and governance through better decision-making, risk mitigation, transparency, and internal controls. this study investigates how firms may use ai to analyse and analyse huge datasets and more flexible and accurate accounting tools to improve corporate decision-making and governance by reducing human error. this study examines how integrating ai technologies with management accounting methodologies improves transparency, strategic decision-making, and operational efficiency, strengthening corporate governance and ethical and professional standards. the study aims to achieve the following objectives: 1. a critical assessment of ai implementation issues in management accounting. 2. examining how ai improves management accounting efficiency and effectiveness. 3. ai's impact on financial reporting transparency analysis. 4. study on ai's impact on strategic decision-making. 5. ai integration and management accounting methodologies' impact on corporate governance. ai enhances management accounting by enabling companies to make data-driven strategic decisions, thereby improving governance efficiency. the implementation of ai technologies reduces errors and the potential for https://orcid.org/0009-0009-6943-5778 mailto:mosleh.m.salim@aliraqia.edu.iq https://orcid.org/0000-0001-8274-4545 mailto:durgham.ahmed1106@coadec.uobaghdad.edu.iq https://orcid.org/0009-0003-5282-786x mailto:taseer.mohammed@uofallujah.edu.iq agbioforum, 26(3), 2024 | 22 salim et al — the role of integration between artificial intelligence and management accounting methods in supporting corporate governance financial statement manipulation, contributing to greater transparency in reporting and strengthening stakeholder confidence. ai also facilitates advanced analysis and forecasting of financial and administrative risks, offering proactive recommendations that promote corporate stability and reinforce governance frameworks. integrating management accounting techniques with ai can significantly reduce the time and costs associated with financial reporting and analysis, allowing organisations to allocate more resources to strategic initiatives. additionally, ai introduces innovative analytical methods, ensuring that management accounting processes remain aligned with contemporary challenges. this integration enhances the financial and operational performance of companies, leading to sustainable returns and increased shareholder value. literature review management accounting and corporate governance are examined in the academic literature by emphasising the need to use specific strategies to improve governance (bhimani, 2009). management accounting provides critical financial information for logical planning and decision-making. to analyse how ai and fourth industrial revolution technologies are affecting management accountants, research has examined their changing role. ai adoption criteria and fourth industrial revolution accounting technologies are statistically and morally related. management accounting and governance effectiveness assessments can improve institutional governance (benbaira & alloune, 2024). management accounting enhancements boost governance frameworks, according to research. management accounting improves industrial organisation planning, control, performance evaluation, and decision-making, strengthening corporate governance (johri et al., 2024). the incorporation of ai technologies into management accounting systems significantly improves the efficiency of accounting functions and enhances corporate competitiveness within the digital business landscape. investigating how ai can optimise administrative performance and strengthen a firm's competitive edge through its integration with management accounting systems continues to be a focal point of research. studies have highlighted a strong positive relationship between strategic management accounting practices and value creation (shaqqour, 2025). senior managers and management accountants are increasingly urged to acknowledge the growing significance of strategic management accounting in evaluating corporate value, drawing on practical insights from research. strategic management accounting techniques are pivotal in assessing the sustainability of corporate governance across different sectors. managers are encouraged to adopt these approaches to identify, evaluate, and manage the social and environmental costs associated with governance activities. with the support of ai-powered expert systems, management accountants can utilise both stored knowledge and human expertise to offer informed recommendations for organisational decision-making. the structure of the board of directors and its governance processes align with recognised corporate governance standards (eldaia, hanefah, & marzuki, 2023; yermack, 1996), ensuring robust oversight and clear strategic direction. the utilisation of management accounting information systems improves the quality of financial data and fosters enhanced governance practices (al-rabei et al., 2015; chen & rezaee, 2012; fakhimuddin, 2018). the reliability of management accounting information further bolsters the strength of corporate governance. the literature also highlights the role of management accounting in addressing agency conflicts by identifying key decisionmaking priorities for managers. by reducing information asymmetry, management accounting contributes to the creation and maintenance of value for stakeholders. however, the structure of supervisory boards, particularly those predominantly composed of family members, does not significantly affect the application of management accounting practices. in contrast, the involvement of nonfamily members in senior management has a partial impact on these practices. the composition of the board of directors is a key factor in determining the extent of strategic management accounting disclosure within manufacturing firms (gantyowati & fitria, 2020; mangena & tauringana, 2007). although a higher proportion of independent board members does not necessarily influence disclosure levels, management ownership has a negative effect. the board of directors plays a pivotal role in determining the scope of strategic management accounting disclosures in corporate reports. moreover, characteristics of the board of commissioners, such as tenure and educational background, significantly influence the level of information disclosure to capital markets authorities. board tenure affects the timeliness of corporate disclosures. companies with a higher proportion of independent directors and a clear separation of the roles of chairman and chief executive officer are more likely to adopt advanced management accounting technologies and implement knowledge management strategies. managers who observe best practices in management accounting are more inclined to integrate enhanced knowledge management frameworks within their organisations (doktoralina & apollo, 2019; haldma & lääts, 2002). in the agricultural sector, management accounting has specific needs, necessitating ai-driven data processing and analysis. agricultural enterprises generate large amounts of operational and financial data that must be effectively managed through ai-enhanced management accounting systems. within an ai-driven environment, management accounting should be used in conjunction with other digital tools to optimise financial oversight (hasan, 2021). as an innovative tool, management accounting enables managers to allocate organisational resources effectively (doktoralina & apollo, 2019; oyelere, laswad, & fisher, 2003), offering vital financial insights for managerial decision-making. ai has the potential to unlock substantial economic opportunities for both countries and firms willing to embrace its capabilities. agbioforum, 26(3), 2024 | 23 salim et al — the role of integration between artificial intelligence and management accounting methods in supporting corporate governance management accounting is still adopting ai, but many accountants need training to use it properly and do highervalue activities. board members should actively request thorough management accounting reports from senior executives to inform strategic decisions. management accountants must use financial data responsibly and be transparent about data analysis and decision-making. security must be emphasised to protect financial data and ai systems from cyberattacks. management accountants with data analysis and interpretation skills can benefit from ai. ai-powered analytics can increase performance measurement, management control system development, and management accounting quality. ai will increasingly support hybrid management accounting functions, influencing decision-making with insights. ai adoption requirements in accounting understand the company's strategic plans and business models to complement accounting skills. accountants must understand business analytics to collect, interpret, and present data. additionally, big data tool competency and structured and unstructured data expertise are required (hasan, 2021). programming skills are also becoming more important in accounting. training accountants to assess previous payment data helps improve transaction monitoring, fraud detection, and financial risk mitigation. supplier data that considers regional and geopolitical variables can also help control supply chain risk. increasing accountants cyberattack detection and prevention skills can reduce technical support needs and expenditures (mcmullen & sanchez, 2010). ai adoption challenges in the accounting industry management accounting involves handling complex data, including financial statements, budgets, and forecasts, which presents significant challenges (prayoga & afrizal, 2021). as these data sets are often unstructured, human interpretation may still be required to extract meaningful insights. additionally, data scarcity poses another major issue, as management accounting information may at times be incomplete or difficult to obtain (zhong & fan, 2021). this limitation can make it challenging for ai systems to learn effectively and generate accurate forecasts. furthermore, much of management accounting is dependent on subjective judgements and estimates, like the price allocation for management expenses or the inventory valuation. ai might have trouble taking such subjective factors into account when it analyses. another challenge is many accounting professionals don't have database functionalities and sql abilities which are fundamental for ai-driven management accounting systems. the requirement of customized financial models, indicators and reporting constructions adds to the complexities of ai integration. ai combined with management accounting has enormous potential benefits but only if employees can utilize it efficiently can it work. psychological readiness is vital, as employees must see ai as an asset not a challenge (chowdhury, 2023; secinaro et al., 2024). ai systems mostly run on rule-based algorithms based on expert knowledge and judgment. but sometimes these rules are faulty or biased by limited expertise, misinformation, emotional influences, or political or economic contexts. consequently, management accountants should use professional judgment when using ai to limit the influence of specialist bias on decision making (kamyabi & devi, 2012). additionally, the implementation of ai is costly, with expenses influenced by factors such as technical feasibility, automation costs, labour market dynamics, economic benefits, and organisational adaptability. to effectively integrate ai, professionals must undergo retraining for evolving roles, necessitating adjustments in accounting education and skills development. ai trends in management accounting accounting professionals, including management accountants, are embracing ai to automate repetitive tasks like raw information processing in spreadsheets (guo, 2019). this automation frees up human resources and time to do these tasks, enabling accountants to process overwhelming quantities of financial information better and to report living on these trends to senior management. businesses are using ai algorithms to detect patterns and evaluate risks in large datasets, leaving management accountants ‘role from merely creating financial reports to assessing ai-generated insights. interpretation of aidriven reports helps accountants make wise choices and spot possible mistakes to enhance the quality of financial decision-making. ai technology is related with data analytics, and both involve predictive modelling and forecasting. whereas data analytics processes information to make predictions, ai extends those insights with advanced predictive techniques. ai tools work better when integrated with existing accounting software to minimize workflow disruptions and feed ai with contextual data. this integration reduces the burden on management accountants, reduces information loss risk and allows sharing of ai-generated reports and insights (ahmed, albaz, & metwaly, 2022; guo, 2019). ai in familiar apps can help accountants remain transparent and in contact with clients, boosting workflow efficiency. cost, time, quality, and risk make performance measurement in complex projects and organisations difficult. a multi-criteria strategy using ai can improve performance evaluation by aggregating project tasks, performance measurement categories, and the performance triptych (effectiveness, efficiency, and relevance). additionally, artificial neural networks and fuzzy logic systems can evaluate performance and forecast consequences. these predictive capabilities help companies spot irregularities and boost efficiency. ai-powered automation boosts management accounting efficiency. rpa automates data entry, transaction processing, and reconciliation, freeing management accountants to focus on strategic analysis and decision support. this lowers operational costs and increases accounting accuracy and reliability. real-time financial monitoring and reporting are also possible with ai. nlp can automate reports and evaluate textual data, boosting transparency and proactive management. ai also improves cost management by removing unnecessary processes and generating accurate agbioforum, 26(3), 2024 | 24 salim et al — the role of integration between artificial intelligence and management accounting methods in supporting corporate governance cost estimations at various operational stages. decisionmakers receive fast, data-driven insights, enhancing organisational performance and guiding strategic decisions. reflections of ai on management accounting the influence of expert systems on enhancing the ability of management accountants expert systems help management accountants in planning, performance assessment, control, resource accountability, and financial reporting (guo, 2019; secinaro et al., 2024). these systems store and interpret human expertise and offer guidance and decision-making support like experts do. in management accounting, expert systems could be applied in areas including transfer pricing which help in deciding the right rate for intra-company transactions. they also support performance evaluation through data-driven evaluations of operational and financial results. in budget planning, expert systems form realistic financial plans based on predictive and historical data. also, they contribute to product pricing by analysing market trends and price structures to make sure competitive pricing methods. they also participate in variance analysis (identifying deviations from expected performance and suggesting corrective actions). another important application is in reward plans where expert systems design incentive structures according to company objectives. using expert systems, management accountants can improve their decision making, decrease the usage of subjective judgement and improve data driven financial methods. these systems reproduce professional advisory methods and provide organizations more reliable and evidenced-based information for strategic decision making. the influence of data analytics on enhancing management accountant ability data analytics provides management accountants an invaluable contribution in discovering new relational patterns in large datasets that may be of great assistance to organizational decision makers. the data analytics & business intelligence relationship is essential as both are turning into hot topics in a lot of businesses' agendas. improved data analysis and decision support are considered fundamental to support highly effective business strategies. the growing volume of big data will in addition affect management accounting controls (zhong & fan, 2021), information & decision-making procedures. this change will affect both decision making skills and processes for making decisions and will also transform traditional management approaches to information usage. big data analysis systems combined with smart algorithms have enormous potential for companies. such technologies might save time, bring down expenses and ease decision making. they let managers resolve issues inside the business structure, and that results in improved production efficiency and competitiveness. this approach might transform organizational structures and processes to be flexible to market demands. the influence of neural networks on improvement of management accountant ability neural networks are increasingly being utilized by businesses to locate and classify most profitable consumers, improve customer support services and boost business operations. utilizing neural networks, management accountants can identify the most lucrative customers or vendors the ones that deliver goods promptly and without delay (ahmed et al., 2022). this analysis is especially helpful in businesses with thousands or hundreds of counterparties. consequently, neural networks can affect the development and productivity of accountants and therefore enhance the overall operation efficiency of the business. neural network training has notably enriched the abilities of management accountants in taking financial, forecasting, and decisions analysis. such artificial intelligence models can process overwhelming quantities of financial information accurately and quickly, enabling accountants to locate patterns, locate anomalies and forecast trends for the future. because neural networks automate complicated calculations, human mistakes are lowered, and efficiency increases in areas like cost analysis, budgeting and risk assessment. they also manage real time financial monitoring to enable management accountants to make judicious, strategic choices. the integration of ai and corporate governance ai drives operational efficiency, decision making and profitability improvements for companies across industries (ahn et al., 2019; almusawi, albdairi, & qadri, 2024; basri, 2020; hasan, 2021). nevertheless, investing in specialised skills & capabilities and ethical and transparent ai use require ai integration into corporate governance. this paper investigates how to effectively and responsibly incorporate ai into corporate governance structures. pros and cons of ai must be balanced in corporate governance. companies must invest in experience and skill to apply and maximize ai's promise. then ai risks including bias and control loss must be identified and managed by organisations. companies must define their goals and find out the best methods to attain them. finding ai usefulness and planning its cost-effective implementation are key. businesses also must develop the technology infrastructure for ai deployment. corporations should establish rules and processes for ethically utilizing ai. an effective ai code of conduct and procedures to minimize bias and loss of control is needed (ahmed et al., 2022). ai-based corporate governance integrating corporate governance with ai requires ethical and transparent issues (cihon, schuett, & baum, 2021). ai analyses massive amounts of decision-related data to improve board oversight and decision-making. it simplifies board tasks like compliance, improving accuracy and efficiency. ai also improves shareholder involvement by evaluating voting patterns and reactions to reveal shareholder preferences. ai also improves business transparency by generating an electronic audit trail that tracks decision-making processes and outcomes. ai helps create effective business reports and detects and prevents unethical activity, improving corporate disclosure procedures. ai is useful in pay-for-performance programme design and management (milana & ashta, 2021). it predicts agbioforum, 26(3), 2024 | 25 salim et al — the role of integration between artificial intelligence and management accounting methods in supporting corporate governance how pay structures will affect executive behaviour and corporate performance, enabling better decision-making. challenges of integrating ai with corporate governance ai affects corporate governance, decision-making, operational efficiency, and innovation (cihon et al., 2021). however, ethical, accountability, and algorithmic bias difficulties arise when integrating it into corporate governance. responsible and effective decision-making requires balancing human judgement and ai-generated insights. to promote continual learning, board members must be abreast of ai developments and their effects. effective communication channels and open explanations for ai-driven choices help stakeholders interact with ai. ai governance relies on ethics, emphasising the need to match ai applications with social norms. businesses are challenged by the rapid growth of ai and the lack of adequate legal and regulatory frameworks. ai-based decision-making may require new governance approaches (pietronudo, croidieu, & schiavone, 2022). there are concerns that technology could be blamed for mistakes. governance mechanisms must adapt to promote accountability, transparency, and ethical oversight of ai use, acknowledging the interplay between human judgement and machine-generated insights. methodology the study primarily seeks to explore the role of integrating ai technologies with management accounting methods in enhancing corporate governance, with a focus on improving transparency, supporting strategic decisionmaking, and increasing operational efficiency. to investigate this relationship, a quantitative research method was adopted, employing a cross-sectional research design. the relationship in question is examined by proposing the following hypotheses: hypothesis 1: there is a significant effect of ai on managerial accounting. hypothesis 2: the ai significantly affects corporate governance (cg). hypothesis 3: the managerial accounting (ma) significantly affects corporate governance (cg). hypothesis 4: the ai has a significant impact on corporate governance (cg) through managerial accounting (ma). to test the hypotheses and examine the degree to which the integration of artificial intelligence and management accounting techniques influences corporate governance, a study was conducted using a questionnaire distributed to 500 accountants from iraqi companies listed on the iraq stock exchange. the questionnaire survey was carried out to collect relevant data from these companies. after data collection, the data were analysed to correct any errors, such as missing values, outliers, and to ensure the normality of the data. table 1 presents the details of the personal characteristics of the 500 individuals in the research sample, which are classified according to the following variables: gender, age, educational attainment, and job position. the table includes detailed statistics that show the distribution of the sample based on each characteristic, providing insights into the demographics of the respondents. this helps to contextualize the sample and ensure the representativeness of the data. the data analysis ensures that the information collected is valid and reliable, preparing it for further statistical testing to examine the relationships between ai integration, management accounting techniques, and corporate governance. table 1: characteristics of the individuals examined within the study sample firm. variable categories and designations number ratio % gender male 401 80% female 99 20% total 500 100% age less than 30 years 123 25% 3140 179 36% 4150 146 29% 51 years and over 52 10% total 500 100% qualification bachelor 484 97% master 11 2% phd 5 1% total 500 100% years of service less than 15 years 216 43% 1620 158 32% 2125 83 17% 25 years and over 43 9% total 500 100% table 1 shows major research sample demographics. the sample is 80% male, with 401 people. the sample is 20% female, with 99 people. the highest represented age group is 31–40, with 179 people, or 36% of the sample. next is the 41–50 age group, with 146 people (29% of the total). the least represented age group is 51+, with 52 (10%). 123 people under 30 make up 25%. the bulk of participants, 484 (97%), had bachelor's degrees. only 11 people (2%) have master's degrees and 5 (1%) have doctorates. most respondents (43%) (216) have less than 15 years of professional experience. the next largest category is 16– 20-year veterans (32%, or 158 people). the least represented category is those with over 25 years of experience (9%, 43 people), whereas 17% (83 people) have 21 to 25 years. when studying ai integration, management accounting, and corporate governance, these demographics assist contextualise the findings and explain the sample composition. findings and discussion reliability test cronbach's alpha is a popular metric of survey or questionnaire item internal consistency or reliability. it shows if the measurement tool items measure the same construct consistently. a cronbach's alpha coefficient closer to 1 suggests more internal consistency, implying the items better measure the target trait or concept. for measurement tool quality and reliability, a cronbach's alpha score above 0.7 is generally acceptable. table 2 may show the reliability test findings for your questionnaire, agbioforum, 26(3), 2024 | 26 salim et al — the role of integration between artificial intelligence and management accounting methods in supporting corporate governance which examine ai integration, management accounting, and corporate governance structures. data collecting tool reliability is indicated by values above 0.7. table 2: test of stability of variables and scale. variable / scale items reliability value artificial intelligence 7 0.781 managerial accounting 7 0.794 corporate governance 7 0.866 scale 21 0.920 the reliability results presented in table 2 show that the measurement tool is highly reliable overall, with values exceeding the acceptable threshold of 0.7. specifically, the artificial intelligence axis, with a reliability value of 0.781, indicates a good level of consistency among the items that measure ai-related constructs. the management accounting axis, with a value of 0.794, demonstrates a satisfactory level of reliability, indicating that the items are consistently measuring the related management accounting aspects. the corporate governance axis has the highest reliability value at 0.866, which is considered very high, showing that the items related to corporate governance are highly consistent in measuring the intended concepts. additionally, the overall reliability of the general scale, at 0.920, confirms that the entire measurement tool is very robust and can be considered reliable for the purposes of the study. this high overall reliability value suggests that the questionnaire is well-constructed, and that the data gathered using it should be dependable for analysis. descriptive analysis of variables descriptive statistics table 3: mean, sd & criteria. variable mean sd criteria x1 3.679 0.215 good x2 3.699 0.334 good x3 3.417 0.326 moderate x4 3.395 0.409 moderate x5 3.421 0.126 moderate x6 4.066 0.396 good x7 4.024 0.173 good artificial intelligence (ai) 3.672 0.283 good m1 3.331 0.168 moderate m2 3.278 0.388 moderate m3 2.276 0.174 week m4 2.525 0.332 moderate m5 4.082 0.326 good m6 4.075 0.286 good m7 4.008 0.267 good managerial accounting (ma) 3.368 0.277 moderate y1 3.415 0.182 moderate y2 3.401 0.260 moderate y3 2.736 0.330 moderate y4 3.561 0.422 good y5 2.264 0.140 week y6 3.930 0.113 good y7 2.069 0.150 week corporate governance (cg) 3.054 0.228 moderate the arithmetic mean and standard deviation were used to analyse the dimensions of the study and its variables, namely artificial intelligence, managerial accounting, and corporate governance. the aim was to understand the distribution of data and measure the variance between these variables. table 3 provides a detailed overview of the central tendencies and the degree of dispersion for each of these variables. by examining the mean and standard deviation, we can interpret the values, assess the differences between the elements, and draw meaningful conclusions about how each variable behaves within the dataset. the central tendency (mean) helps identify the typical value for each variable, while the standard deviation indicates the degree of variability or spread of the data around the mean, providing insight into the consistency or variation of responses within the sample. the arithmetic mean, and standard deviation were used to analyse the study's dimensions and variables (artificial intelligence, managerial accounting, and corporate governance) to understand data distribution and measure variance. table 3 presents the key statistical features of these variables, analysing central tendencies and dispersion to interpret their values and differences. ai axis x1 had a high arithmetic mean of 3.679 and a low standard deviation of 0.215, indicating significant respondent agreement. thus, it is "good," indicating stability. x2's arithmetic mean of 3.699 and standard deviation of 0.334 indicated excellent evaluation and relative stability, categorising it as "good." x3 had a moderate arithmetic mean of 3.417 and a standard deviation of 0.326, indicating slight response variance. thus, it is "moderate." variable x4s arithmetic mean was 3.395 and standard deviation was 0.409, showing moderate variability and classification as "moderate." arithmetic mean of 3.421 and low standard deviation of 0.126 indicated moderate appraisal and solid consensus, qualifying variable x5 as "moderate." variable x6 received a "good" grade for its high arithmetic mean of 4.066 and standard deviation of 0.396, indicating data stability and performance. x7's "good" rating was supported by its high arithmetic mean of 4.024 and low standard deviation of 0.173. with a standard deviation of 0.283, the ai axis mean was 3.672, showing high evaluation and relative stability. this shows that ai improves internal control and performance in firms. ma axis with an arithmetic mean of 3.331 and a low standard deviation of 0.168, variable m1 showed moderate appraisal and consensus among respondents. thus, it is "moderate." m2's 3.278 arithmetic mean and 0.388 standard deviation indicate moderate variability, earning a "moderate" rating. the low arithmetic mean of 2.276 for variable m3 indicated weak evaluation, whereas the standard deviation of 0.174 indicated response stability. the classification is "weak." m4 had an arithmetic mean of 2.525 and a standard deviation of 0.332, indicating "moderate." variable m5 was "good." its high arithmetic mean of 4.082 and standard deviation of 0.326 indicated reliable data. m6's high mean of 4.075 and standard deviation of 0.286 indicated robust and reliable performance, receiving a "good" categorisation. the mean of variable m7 was 4.008, which was quite high, and its standard deviation was 0.267, confirming its "good." classification. the ma axis mean was 3.368, suggesting moderate evaluation, while the agbioforum, 26(3), 2024 | 27 salim et al — the role of integration between artificial intelligence and management accounting methods in supporting corporate governance standard deviation was 0.277, showing data stability. this shows how management accounting helps firms meet financial and administrative goals. cg axis variable y1 had a moderate arithmetic mean of 3.415 and a low standard deviation of 0.182, showing response stability. the classification is "moderate." variable y2 was "moderate." its arithmetic mean was 3.401 and its standard deviation was 0.260. variable y3 was classified as "moderate" due to its mean of 2.736 and standard deviation of 0.330. variable y4 was "good." its high arithmetic mean of 3.561 and moderate standard deviation of 0.422 indicated moderate volatility. with a mean of 2.264 and a standard deviation of 0.140, variable y5 showed weak performance and consensus among respondents. the classification is "weak." variable y6 had a high mean of 3.930 and a low standard deviation of 0.113, indicating great stability and categorising it as "good." y7's extremely low mean of 2.069 and standard deviation of 0.150 indicate significant convergence, categorising it as "weak." the cg axis mean was 3.054, indicating moderate evaluation, and the standard deviation was 0.228, showing stability. variable y4, which had a high mean of 3.561, shows how corporate governance improves accounting information and corporate transparency. 4.3 hypotheses testing results of the first hypothesis: ai positively affects ma with an estimated effect of 0.936, indicating a strong link. the statistical significance value of 0.010 verifies that the association is significant at a level below 0.05, while the low standard error of 0.008 indicates good estimation precision. the first hypothesis is accepted, showing that artificial intelligence has a significant and statistically significant impact on management accounting. these results are in table 4. table 4: hypotheses results. hypothesis estimates standard errors sig. ai → ma 0.936 0.008 0.010 ai → cg 0.848 0.019 0.010 ma → cg 0.789 0.088 0.010 ai → ma → cg 0.739 0.083 0.010 this result aligns with the findings of fotache & bucsă (2024), guo (2019) and vărzaru (2022). by leveraging artificial intelligence, management accountants can utilize advanced analytics to enhance performance evaluation, establish efficient management control systems, and improve the quality of management accounting. it is anticipated that ai will transform numerous management accounting activities into hybrid processes, integrating human expertise with data-driven insights provided by ai solutions. results of the second hypothesis: these findings align with previous research by hickman & petrin (2021), hilb (2020) and samara et al. (2024), which highlight the role of ai applications in enhancing corporate governance. ai can efficiently process large volumes of data, facilitating more effective decision-making. additionally, ai applications contribute to improved document management, streamlined reporting, reduced errors, enhanced risk management practices, and increased transparency. by fostering trust among stakeholders, ai ultimately strengthens corporate governance and protects the integrity of organizations. results of the third hypothesis: these findings align with previous research by arunruangsirilert & chonglerttham (2017), and kamal hassan (2008), which emphasize the critical role of management accounting in strengthening corporate governance. management accounting provides essential financial and non-financial information that supports planning, control, performance evaluation, and strategic decision-making within organizations. this, in turn, enhances transparency and disclosure, reducing financial and administrative corruption and enabling companies to implement governance practices more effectively. results of the fourth hypothesis: these findings highlight the crucial role of ai and ma in shaping cg. the mediating effect of ma strengthens the relationship between ai and cg, reinforcing the idea that ai-driven advancements in management accounting contribute significantly to improved governance structures (figure 1). with a total effect estimate of 0.739 and strong statistical significance, the results provide robust evidence that integrating ai into management accounting practices leads to more transparent, efficient, and accountable corporate governance. these insights align with prior research, emphasizing the necessity for businesses to leverage aipowered analytics, automation, and predictive modelling to enhance decision-making, financial reporting, and compliance monitoring. as a result, organizations can foster better transparency, reduce financial risks, and strengthen regulatory adherence, ultimately contributing to sustainable corporate growth and integrity. figure 1: amos program results. conclusion this conclusion highlights the transformative influence of artificial intelligence (ai) on management accounting and corporate governance. ai enhances the capabilities of management accountants through advanced data analysis and automation, while also reshaping corporate governance by improving transparency, accountability, and decision-making processes. nevertheless, the field is still evolving, and additional research is needed to fully comprehend ai's implications and best practices for its integration. organisations that proactively address the ethical, legal, and operational challenges associated with ai will be better positioned to harness its benefits and mitigate potential risks. as ai technology continues to agbioforum, 26(3), 2024 | 28 salim et al — the role of integration between artificial intelligence and management accounting methods in supporting corporate governance evolve, businesses must adopt a forward-thinking approach, ensuring responsible governance and ethical ai deployment to foster sustainable corporate success. the integration of ai in corporate governance marks the beginning of a new era—one that redefines decisionmaking, strengthens stakeholder relationships, and reshapes ethical considerations in corporate leadership. implications of the study this study emphasizes the critical role of ai and management accounting in strengthening corporate governance. ma must ensure transparency in their use of financial data, providing clear explanations to stakeholders about data analysis and decision-making processes. to fully leverage ai's benefits, companies should invest in secure and reliable ai-based systems that enhance corporate governance while minimizing risks. given the study’s findings on ai’s positive impact, companies listed on the iraq stock exchange should actively adopt aidriven technologies to improve governance practices. additionally, since ai has been shown to significantly enhance management accounting, businesses should integrate ai tools to optimize financial reporting, control systems, and strategic planning. furthermore, promoting management accounting across iraqi companies is essential for strengthening corporate governance. since this study highlights the significant role of management accounting in governance, businesses should foster its adoption to improve transparency, accountability, and decision-making processes. by strategically implementing ai and reinforcing management accounting practices, companies can drive sustainable corporate governance improvements in the evolving business landscape. future research directions ai-driven breakthroughs will transform corporate governance, thus academic research should continue integrating ai and management accounting. organisations must adapt to new trends and governance structures as ai usage grows. while this study addressed ai as a broad variable, future research should focus on specific ai features including machine learning, natural language processing, and expert systems to better understand their effects on corporate governance. the influence of ai on corporate governance should be assessed using secondary data rather than survey-based methodologies, particularly by comparing preand post-ai adoption. a more objective and data-driven understanding of ai's revolutionary role in corporate governance would result. acknowledge this project was supported by al iraqia university and ministry of education-iraq and the deanship of college of administration and economics at university of fallujah references ahmed, a., albaz, m. m., & metwaly, a. z. 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an increase in influencer engagement correlates with a heightened fomo response, which, in turn, enhances purchase intention. the theoretical contribution of this research lies in its extension of the stimulus-organism-response (sor) theory, integrating it with social influence theory to construct a model of fomo behaviour moderated by influencers. keywords: fomo, smm, e-wom, pi. introduction digitalization necessitates that businesses implement smm strategies to significantly enhance their market share. in indonesia, a notable sector that has embraced smm is the food and beverage industry, particularly among micro, small, and medium enterprises (msmes). according to the daily social innovate msme report (2022), the adoption of smm in this industry surged from 78.2% in 2022 to 83.8% in 2023, attributed largely to the ease of use associated with social media platforms. however, despite this increase in smm engagement, the industry's contribution to indonesia's gross domestic product (gdp) did not reflect a corresponding growth, registering at 5.31% in 2022 and declining to 5.05% in 2023. smm is defined by kim & ko (2012) as the process of conveying information via social media as a marketing tool, offering distinct advantages over traditional marketing methods such as print advertisements and billboards. the benefits of smm include its capacity to entertain consumers through engaging content, facilitate information searches using hashtags and keywords, provide real-time updates on products and services, enable direct interaction between users, and foster viral communication known as e-wom. these advantages culminate in five key dimensions of smm: entertainment, interaction, trendiness, customization, and e-wom. the content disseminated through smm encompasses various formats, including text, images, videos, and music, all aimed at fostering positive relationships with consumers. recent studies, such as those by al-busaidi, dauletova, & al-wahaibi (2022) and ilyas et al. (2022), suggest that smm can exacerbate fomo behaviour among consumers. fomo, often linked to negative emotional responses arising from social media engagement, is described by rautela & sharma (2022) as a phenomenon where individuals experience anxiety and dissatisfaction stemming from a perceived sense of missing out on enjoyable experiences that others are having. however, marketers may view fomo as an opportunity to engage customers by leveraging the psychological and emotional states of consumers (zhang et al., 2022). hedges (2014) contextualizes fomo behaviour within the framework of the adage "the grass is always greener on the other side," highlighting its association with feelings of disconnection and anxiety triggered by social media. additionally, ilyas et al. (2022) found that fomo can significantly influence purchasing behaviour resulting from smm activities, regardless of the product or service type, and can mediate the relationship between smm and pi. these findings support the assertions of al-busaidi et al. (2022), who recommend further exploration of the influence of smm dimensions on fomo. research conducted by bushara et al. (2023) indicates that smm dimensions specifically entertainment, interaction, trendiness, and customization can positively influence ewom and pi. conversely, alsoud et al. (2023) noted that while these dimensions enhance pi, the e-wom dimension did not demonstrate a significant effect. similarly, mailto:mahrina.sari@feb.unila.ac.id agbioforum, 26(1), 2024 | 93 septiana et al. — fear of missing out behaviour: an indonesian consumer’s perspective of food and beverage oscarius yudhi ari wijaya et al. (2021) reported that a focus on the trendiness dimension did not substantially impact pi. in addition, findings from dinh, wang, & lee (2023) and dinh & lee (2022) suggest that influencers can amplify fomo behaviour and enhance pi. however, hermanda, sumarwan, & tinaprillia (2019) observed no significant effect of influencers on pi, whereas han & chen (2022) proposed that influencers may serve as a moderating variable affecting pi. good & hyman (2020) further illustrate the multifaceted role of fomo, identifying it as a variable that can function as dependent, independent, mediating, or moderating. building on these insights, the current research aims to analyse how smm through its five dimensions of entertainment, interaction, trendiness, customization, and e-wom affects fomo, moderated by influencer engagement. this study also seeks to investigate the impact of smm on pi and the mediating role of fomo within this relationship, specifically within the context of the food and beverage industry among msmes, a topic that has not been extensively explored in prior research. literature review the present study employs the sor theory to analyse the research hypothesis, particularly in relation to smm dimensions integrated within the framework of sit. as articulated by mehrabian & russell (1974), sor theory posits that environmental stimuli can significantly affect individual evaluations, leading to either positive or negative responses. this theoretical framework underscores the role of various environmental factors as stimuli that influence an individual's psychological state, which subsequently drives behavioural responses (jacoby, 2002; king, 2023). the concept of stimuli refers to external factors that can impact cognitive and mental processes within an individual (goh, heng, & lin, 2013; lin & lo, 2016). in the context of social media marketing, it is argued that these platforms can create a conducive external environment that encourages consumer engagement and action (herlambang, ikatrinasari, & kosasih, 2022; koay, cheah, & goon, 2023). furthermore, organisms respond to these environmental stimuli through a combination of external and internal behaviours that are shaped by cognitive processes (liu, lee, & lien, 2021; thapit et al., 2022). internal responses often manifest as changes in attitudes, while external responses are reflected in behavioural actions. therefore, the information disseminated through smm activities on social media can significantly influence consumer behaviour, initiating from the formation of pis and culminating in actual purchasing behaviour (castilloabdul, romero-rodríguez, & balseca, 2021). sit provides additional context by focusing on the attitudes, behaviours, and interactions of individuals within group settings (lee et al., 2011). research conducted by wang & sun (2016) indicates that opinions and social influence behaviours can affect the use of social media; however, the strength of this influence can vary across different social media platforms. users typically exhibit their engagement by commenting, liking, or sharing content that resonates with them. since its inception, sit has found extensive application in marketing research. the theory has been employed to investigate various topics, including product sales, consumer behaviour, virtual communities, travel experience sharing, and social media advertising (wang, huang, & davison, 2021). this research specifically focuses on the moderating role of influencers, which aims to amplify the effects of social media marketing on the phenomenon of fomo. by leveraging influencer dynamics, the study seeks to elucidate how influencers can enhance the impact of smm strategies on consumer behaviour in a digital landscape characterized by constant connectivity and social interaction. smm dimensions (entertainment, interaction, trendiness, customization, and e-wom and fomo smm, as defined by aula (2010), encompasses marketing activities that utilize highly interactive platforms where individuals share and process information collaboratively. research by miller, fabian, & lin (2009) highlights the significance of smm, emphasizing its role in facilitating low-cost, interactive, and instantaneous communication among customers and communities. nair (2011) further elaborates that smm fosters relationships between individuals and organizations, encompassing various forms of engagement, including discussions, blogs, and vlogs. the rise of consumer activity on social media platforms has led to increased information sharing, as noted by kaplan & haenlein (2010). in this context, kim & ko (2012) identified five key dimensions of smm: entertainment, interaction, trends, customization, and ewom, suggesting that the appeal of social media marketing distinctly differs from traditional marketing channels such as print advertisements and billboards. according to the sor theory, external stimuli can activate internal cognitive processes, resulting in specific behavioural responses (mehrabian & russell, 1974; warganegara & adam, 2023). this framework posits that smm stimuli can shape the psychology of fomo, as explored in studies by agarwal & mewafarosh (2021), akbari et al. (2021), buglass et al. (2017), and stead & bibby (2017). consequently, this research posits that smm serves as a stimulus that significantly and positively influences the cognitive and emotional states of individuals, thereby affecting the motivational psychology associated with fomo. hodkinson (2019) characterizes fomo as a personality trait that prompts various behavioural actions. the experience of fomo can also vary based on demographic factors such as age and gender, with przybylski et al. (2013) noting that men typically exhibit lower levels of fomo compared to women (beyens, frison, & eggermont, 2016). women are generally more susceptible to fomo, leading to increased individual profile activity on social networks. this heightened engagement facilitates more information sharing among users (lai et al., 2016). hollenbaugh & ferris (2014) assert that social media communication serves dual purposes: conveying information and providing entertainment. the incorporation of entertaining content fosters greater selfagbioforum, 26(1), 2024 | 94 septiana et al. — fear of missing out behaviour: an indonesian consumer’s perspective of food and beverage disclosure among communicants, as individuals seek to maintain a competitive status in self-presentation. this behaviour contributes to the creation of shared moments and experiences (o’donnell, stuart, & barber, 2023). individuals who actively engage with entertaining content on social media are more likely to experience fomo positively and significantly (buglass et al., 2017; shen, ab jalil, & jamaluddin, 2024). the evolution of communication facilitated by social media has transitioned from mass communication to a more interactive digital format (tiago & veríssimo, 2014). this shift underscores the potential for marketers to cultivate digital customer relationships, as marketing communications increasingly integrate into the digital sphere. the interactivity of social media enhances communication and stakeholder engagement (gómez vázquez & soto vélez, 2011), fostering consumer interactions within online communities through the dissemination of timely and relevant information. fischer & reuber (2011) found that interactions on social media predict a significantly positive increase in fomo levels. moreover, przybylski et al. (2013) identify the desire to stay current with trends on social media as a contributing factor to fomo. individuals who experience fomo may feel anxiety when their experiences do not align with trending topics, leading to heightened levels of fomo as discussions around popular content intensify. in the realm of customer loyalty, martin & todorov (2010) advocate for personalized services that allow individuals to express their self-concept. in social media contexts, customization pertains to tailoring messages to specific audience segments. the more personalized the service, the greater the positive and significant impact on fomo psychology resulting from customized products or services conveyed through social media marketing. furthermore, smm, particularly in relation to the e-wom dimension, encompasses consumer feedback regarding specific products or brands shared on social media (ross et al., 2009). this phenomenon engenders viral communication, as consumers are increasingly inclined to discuss and debate brands online, driven by the proliferation of online platforms. ross et al. (2009) also indicate that companies are leveraging e-wom to enhance their online presence and brand image. as marketer’s present engaging information on social media, e-wom is likely to increase, as consumers show interest in reading reviews and interacting with shared content (aydin et al., 2021). this proactive engagement in response to social media content aligns with przybylski et al. (2013), who argue that such behaviour can significantly elevate fomo levels. based on the aforementioned insights, the formulation of the hypothesis for this research is: h1: smm entertainment has a significant positive effect on fomo. h2: smm interaction has a significant positive effect on fomo. h3: smm trendiness has a significant positive effect on fomo. h4: smm customization has a significant positive effect on fomo. h5: smm e-wom has a significant positive effect on fomo. smm dimensions (entertainment, interaction, trends, customization, e-wom and pi the adoption of smm in the business landscape is rapidly increasing, fuelled by advancements in digital technology. this trend has led to heightened consumer interest and intention to purchase new products or services, commonly referred to as pi. according to rezvani et al. (2012), pi is defined as an individual's conscious desire to attempt to buy a brand. park, hyun, & thavisay (2021) further elaborate that pi encompasses the cognitive processes associated with the likelihood of purchasing an advertised item, particularly when such a purchase reflects a demonstrated loyalty to the product or service. pi is also influenced by demographic variables such as age, gender, profession, and education level (lu, zhao, & wang, 2010). wang (2010) defines purchasing intention as a decisionmaking process or behavioural intention indicating an individual's propensity to engage with a product or service. thus, it can be inferred that smm significantly shapes consumer pis towards products or services, which subsequently impacts purchasing behaviour. when marketers effectively establish persuasive communication through smm, consumer pis are positively and significantly influenced. the formation of pis is intricately linked to consumers' attitudes and beliefs about the product or service, a relationship that aligns with the theory of reasoned action (fishbein, 1962; wang et al., 2024). attitude refers to an evaluation of the object, which can be favourable or unfavourable, while belief pertains to the perceived likelihood of an event occurring. consequently, marketers strive to craft persuasive smm communications that shape consumers' attitudes and beliefs, thereby enhancing pis. smm comprises five dimensions entertainment, interaction, trendiness, customization, and e-wom which collectively evoke positive emotions in consumers, fostering a desire for continuous engagement with social media. bushara et al. (2023) indicate that marketers leverage smm to create enjoyable and entertaining experiences, where the inclusion of engaging content enhances consumer awareness and fosters pis. the dimension of entertainment within smm serves to enrich the enjoyment derived from social media experiences. agichtein et al. (2008) assert that entertainment can significantly elevate user satisfaction and engagement. social media users are often motivated by a hedonic desire for pleasure and enjoyment (manthiou, chiang, & liang, 2013). shao (2009) highlights that entertainment serves as a powerful motivator for engaging with marketing content. park et al. (2021) further note that entertainment enhances participation in social networks, while muntinga, moorman, & smit (2011) reveal that users often turn to brand-related information for recreational satisfaction. courtois et al. (2009) emphasize that sharing information on social media is driven by leisure and relaxation, reinforcing the notion that entertaining content can positively influence purchasing agbioforum, 26(1), 2024 | 95 septiana et al. — fear of missing out behaviour: an indonesian consumer’s perspective of food and beverage intentions (bushara et al., 2023; duong, 2023). the interactive dimension of smm facilitates robust consumer-business interactions, particularly through platforms like instagram. li, larimo, & leonidou (2021) emphasize the importance of social media in fostering these interactions, which cui et al. (2019) found to significantly enhance consumers' pis. gómez vázquez & soto vélez (2011) contend that smm enhances communication and stakeholder engagement due to its inherent interactivity, which transforms purchasing decisions and interactions among consumers. the dissemination of timely and relevant information through smm allows for enriched consumer engagement, leading to positive and significant increases in pis (fischer & reuber, 2011). interactions on social media, defined by kotler et al. (2016) as responses to specific experiences or services, play a crucial role in building meaningful connections. a higher volume of interactions fosters a richer communication landscape. booker, kelly, & sacker (2018) note that social media is particularly effective in cultivating engagement among younger audiences, while cao, meister, & klante (2014) assert that customer dialogues via social media have become increasingly active. interaction is fundamentally about communication between businesses and consumers, with findings by kang, cui, & son (2019) indicating that social media interactions positively influence consumers' pis. the trendiness dimension of smm is pivotal in enhancing brand awareness and enabling consumers to access the latest information about products or services swiftly. liu et al. (2021) define trends as widely disseminated developments on social media that consumers regularly seek. marketers utilize trends to convey timely and relevant information regarding their offerings, thereby aiding consumers in making informed purchasing decisions (muntinga et al., 2011). while some studies, such as oscarius yudhi ari wijaya et al. (2021) and vizano, khamaludin, & fahlevi (2021), report that trendiness does not significantly impact smartphone users' pis, bushara et al. (2023) demonstrate that trend information related to restaurant services can significantly influence pi. this highlights the necessity for further exploration into how smm’s trendiness can positively affect pi. customization, another essential dimension of smm, can also significantly enhance pi. kim & lee (2020) assert that understanding and fulfilling customers' customization needs through personalized communication is crucial for marketers. ullah & narain (2021) emphasize that increasing creative engagement on social media can boost customer satisfaction and encourage purchases. bushara et al. (2023) argue that effective customization in smm aligns with market needs and consumer segments, fostering positive relationships and enhancing pis. finally, the e-wom dimension of smm significantly influences consumer purchasing behaviour. hilal (2019) notes that e-wom effectively impacts pis due to its lowcost, rapid dissemination through social media. this form of communication encompasses the exchange of information, ideas, and perceptions, exerting a more substantial influence on brand selection than traditional advertising (dellarocas, 2003). the advent of social media has facilitated the growth of e-wom, allowing for unparalleled interaction and feedback. hilal’s hilal (2019) research underscores the significant positive influence of entertainment, customization, and e-wom on consumers' purchasing intentions. additionally, lou & yuan (2019) found that e-wom plays a crucial mediating role in enhancing pis, a finding echoed by gautam & sharma (2017). in conclusion, the various dimensions of smm entertainment, interaction, trendiness, customization, and e-wom collectively exert a significant positive influence on consumer purchase intent, warranting further investigation into their interconnected roles within the broader context of digital marketing strategies. therefore, the formulation hypothesis for this research is as follows: h6: smm entertainment has a significant positive effect on pi. h7: smm interaction has a significant positive effect on pi. h8: smm trendiness has a significant positive effect on pi. h9: smm customization has a significant positive effect on pi. h10: smm e-wom has a significant positive effect on pi. fomo and pi fomo has been identified as a psychological motivator that can drive consumer behaviour, particularly regarding purchasing decisions. richard, van der pligt, & de vries (1996) suggest that fomo can prompt individuals to take action to avoid the regret associated with not participating in an opportunity. floyd, prentice-dunn, & rogers (2000) expand on this by indicating that fomo involves a perception of threat, encouraging individuals to respond effectively to avoid missing out. consequently, fomo is associated with feelings of fear and regret, which can catalyse purchasing behaviour as individuals seek to mitigate these feelings by engaging with a product or service. broadly defined, fomo is characterized as a compelling attraction to certain products or services driven by anxiety about missing out on experiences others might be enjoying (williams et al., 2023). hayran, anik, & gürhan-canli (2017) describe fomo as an unpleasant emotional state often accompanied by anxiety. przybylski et al. (2013) further clarify that fomo manifests when consumers fear they are missing enjoyable activities engaged in by others, leading them to seek participation and the associated enjoyment. hodkinson (2019) highlights that fomo can significantly influence purchasing behaviour. hayran et al. (2017) argue that fomo motivates consumers to buy products perceived as scarce or limited, reinforcing the notion that scarcity can enhance pi (dinh & lee, 2022; sakulpolphaisan & hensawang, 2022). additionally, kang & ma (2020) assert that higher levels of fomo correlate with increased brand loyalty, as consumers demonstrate repeat purchasing behaviour toward favoured brands. hodkinson (2019) concludes that fomo serves as a motivating factor for marketing strategies aimed at enhancing consumers' pis. fomo appears to be particularly prevalent among younger demographics. prior literature indicates that a significant majority of american teenagers experience agbioforum, 26(1), 2024 | 96 septiana et al. — fear of missing out behaviour: an indonesian consumer’s perspective of food and beverage fomo, which correlates with their pis. akbari et al. (2021) confirm that fomo serves as a motivational factor for the millennial generation in indonesia when making purchasing decisions. furthermore, alt & boniel-nissim (2018) suggest that fomo can foster positive engagement in various activities, serving as a situational determinant characterized by perceived enjoyment, self-relevance, and popularity (hayran et al., 2017). fomo has become more pronounced with advancements in technology and the rise of social media, impacting the formation of purchasing intentions (richard et al., 1996). tanner, hunt, & eppright (1991) note that fomo prompts actions to prevent regret, highlighting the effective responses individuals adopt to avoid missing out (floyd et al., 2000). this understanding of fomo sets the foundation for the hypothesis that: h11: fomo has a positively significant on pi. the mediating role of fomo the influence of marketing activities on social media is critical in shaping consumers' purchasing decisions, particularly through the lens of fomo. this emotional response can overshadow rational considerations regarding sustainable purchasing decisions. therefore, the presentation of information through smm dimensions entertainment, interaction, trendiness, customization, and e-wom can evoke fomo, thereby positively influencing pis. de barcellos et al. (2015), jiménezcastillo & sánchez-fernández (2019), and ashley & tuten (2015) assert that product-related information and visual content shared via smm can affect consumer psychology regarding fomo. przybylski et al. (2013) found that even consumers without initial fomo tendencies can develop such feelings due to extensive exposure to smm activities. their research indicates that consumers experiencing fomo are more likely to exhibit increased pis, suggesting that fomo plays a mediating role in the relationship between smm and pi, as supported by baron & kenny (1986). the following hypotheses are thus proposed: h12: fomo positively significantly mediates the effect of smm based on the entertainment dimension of pi. h13: fomo positively significantly mediates the effect of smm based on the interaction dimension on pi. h14: fomo positively significantly mediates the effect of smm based on the trendiness dimension on pi. h15: fomo positively significantly mediates the effect of smm based on the customization dimension on pi. h16: fomo positively significantly mediates the effect of smm based on the e-wom dimension on pi. the moderating role of influencer influencers play a crucial role in shaping consumer behaviour and enhancing fomo, as noted by tafesse & wood (2021). they are pivotal in attracting new consumers, especially when individuals encounter product or service information through smm activities encompassing entertainment, interaction, trendiness, customization, and e-wom dimensions (hughes, swaminathan, & brooks, 2019). influencers can amplify the effects of smm activities, leading to stronger consumer engagement and heightened fomo. freberg et al. (2011) indicate that influencers leveraging blog or video content on social media can effectively alter audience attitudes and behaviours, creating an independent form of support for brands. dinh & lee (2022) assert that influencers foster robust relationships with their audiences, potentially intensifying fomo regarding the brands they promote, which subsequently drives purchasing intentions. mai & schoeller (2009) found that young consumers are inclined to engage with digital marketing media to connect with influencers, further reinforcing fomo. this phenomenon occurs when consumers identify with influencers, viewing their promotion of products as an extension of their own selfimage. buglass et al. (2017) support this, suggesting that increased information exchange, particularly of entertaining content via smm, elevates levels of fomo. deborah, michela, & anna (2019) emphasize that direct engagement between influencers and their followers strengthens interactions, enhancing fomo, particularly when conveyed through smm. moreover, przybylski et al. (2013) highlight that discussions surrounding trending products within social groups can amplify individual fomo, especially when reinforced by influencer-driven smm communication. information regarding product customization also strengthens fomo when communicated by influencers (swar & hameed, 2017). al-busaidi et al. (2022) reveal that when consumers purchase products that align with those favoured by influencers, they often share their satisfaction on social media, creating a viral effect known as e-wom, which further intensifies fomo. consequently, it can be posited that influencers serve as significant moderators in the relationship between smm activities and fomo. the following hypotheses are proposed: h17: influencer positively significantly moderates the effect of smm entertainment on fomo. h18: influencer positively significantly moderate the effect of smm interaction on fomo. h19: influencer positively significantly moderate the effect of smm trendiness on fomo. h20: influencer positively significantly moderates the effect of smm customization on fomo. h21: influencer positively significantly moderates the effect of smm e-wom on fomo. research method this research adopted a quantitative design, implementing self-administered questionnaires distributed over an eightweek period, from november 2023 to july 2024. a total of 600 customers who had engaged with content from food and beverage micro, small, and medium enterprises (msmes) were targeted, utilizing online google forms as the primary method for data collection. the questionnaire was structured into three sections: the first section gathered general information to verify respondent eligibility, the second section comprised questions related to the research variables, and the third section collected demographic profiles of the respondents. additionally, follow-up agbioforum, 26(1), 2024 | 97 septiana et al. — fear of missing out behaviour: an indonesian consumer’s perspective of food and beverage interviews were conducted with respondents to address any incomplete responses. the collected data were organized and tabulated using microsoft excel. after careful editing, a total of 470 usable responses were identified for analysis, which met the sample size requirements for this study. the questionnaire items employed a 5-point likert scale, ensuring the collection of valid and reliable data. the items were adapted from established measurements in previous research, detailed in table xxx. each measure was aligned with the definitions of the respective variables. all indicators satisfied the validity criteria, evidenced by a standardized loading factor (slf) of ≥ 0.50. convergent validity was confirmed using the average variance extracted (ave) criterion, with values exceeding 0.5, and reliability was verified with a composite reliability (cr) score above 0.7. the analysis of the 470 usable data points was conducted using sem based covariance, utilizing the lisrel 8 statistical application. the analysis followed a two-step approach, encompassing both the measurement fit model and the structural model. sem-based covariance is particularly suitable for complex research models or multi-equation approaches, enabling the examination of relationships among independent variables, dependent variables, and moderating variables. despite requiring a larger sample size (cai et al., 2015), sem is recognized as an efficient estimation technique for simultaneously estimating multiple regression equations (cai et al., 2015). the total of 470 usable data in this research effectively met the necessary sample size criteria. results respondents’ characteristics the analysis of the 470 respondents revealed significant demographic characteristics, including age, gender, region, and generation, as detailed in the table below. female respondents constituted the majority at 61.1%, surpassing their male counterparts. this gender disparity suggests that the fomo) is more prevalent among women, which indicate that women tend to experience higher levels of fomo compared to men. additionally, a survey corroborates this trend, reporting that 63.5% of tiktok users are female, while males account for 36.5%. the respondent profile also indicated a predominance of generation z participants, comprising 41.9% of the sample. this aligns with findings from prior literature, which state that 60% of tiktok users in indonesia belong to generation z. furthermore, 55.95% of respondents reported monthly expenses ranging from 2 to 5 million idr. this spending pattern is consistent with the economic behaviour of both gen z and millennials, who typically maintain expenditures within this range. in terms of educational background, respondents with a strata 1 (bachelor's degree) level of education represented 40.2% of the sample. moreover, the most common occupation among respondents was private employment, accounting for 32.34% of the total. these characteristics provide valuable insights into the demographic landscape of the respondents, highlighting trends that may influence their engagement with social media and purchasing behaviour. table 1: respondents' characteristics. respondents’ characteristics frequency percentage gender male 183 38,9% female 287 61,1% generation baby boomers (1946-1964) 38 8,11% gen x (1965-1980) 70 14,89% milenial (1981-1996) 165 35,1% gen z (1997-2012) 197 41,9% expenses per month 2 5 million 188 55,95% 6 10 million 163 32,59% 11 15 million 67 14,25% > 15 million 52 11% education senior high school 168 35,74% bachelor degree 189 40,2% master degree 71 15,1% doctoral degree 42 8,9% work student 119 25,31% employee 152 32,34% civil servants 75 15,95% entrepreneurs 124 26,38% total respondents 470 sources: calculated using the sem lisrel 8.0 test result of validity and reliability the validity of the measures in this study was assessed using a convergent validity test, which employed the average variance extracted (ave) value as a criterion. according to hair jr, babin, & krey (2017), an ave value exceeding 0.5 indicates that the indicators are valid. the results of the validity test confirmed that all indicators across all variables fell within the valid category, as their ave values surpassed the threshold of 0.5. to evaluate the reliability of the measures, the construct reliability (cr) value was utilized. this metric assesses the consistency and reliability of each indicator within the measured variables. hair jr et al. (2017) state that a cr value of 0.70 or higher signifies acceptable reliability. the reliability test results indicated that all indicators for every variable met this criterion, as their cr values exceeded 0.7. agbioforum, 26(1), 2024 | 98 septiana et al. — fear of missing out behaviour: an indonesian consumer’s perspective of food and beverage table 2: test result of validity and reliability. variable slf>0,5 error cr > 0,7 ave > 0,50 conclusion social media marketing entertainment (smmen) reliable smmen1 0,84 0,3 0,82 0,6 valid smmen2 0,82 0,33 valid smmen3 0,67 0,55 valid social media marketing interaction (smmint) reliable smmint1 0,74 0,46 0,82 0,6 valid smmint2 0,88 0,22 valid smmint3 0,71 0,49 valid social media marketing trendiness (smmtrd) reliable smmtrd1 0,87 0,24 0,9 0,73 valid smmtrd2 0,85 0,28 valid smmtrd3 0,86 0,26 valid social media marketing customization (smmcus) reliable smmcus1 0,86 0,25 0,9 0,67 valid smmcus2 0,98 0,05 valid smmcus3 0,76 0,43 valid social media marketing ewom (smmew) reliable smmew1 0,81 0,35 0,85 0,66 valid smmew2 0,88 0,23 valid smmew3 0,74 0,45 valid fomo reliable fomo1 0,77 0,41 0,96 0,76 valid fomo2 0,77 0,41 valid fomo3 0,85 0,28 valid fomo4 0,89 0,21 valid fomo5 0,87 0,24 valid fomo6 0,93 0,13 valid fomo7 0,93 0,13 valid fomo8 0,93 0,14 valid pi reliable pi1 0,89 0,21 0,91 0,59 valid pi2 0,78 0,38 valid pi3 0,81 0,35 valid pi4 0,67 0,55 valid pi5 0,73 0,47 valid pi6 0,73 0,46 valid influencer reliable inf1 0,69 0,53 0,91 0,6 valid inf2 0,6 0,64 valid inf3 0,9 0,2 valid inf4 0,91 0,18 valid inf5 0,96 0,08 valid inf6 0,74 0,45 valid sources: output results by sem lisrel 8.80 normality data and fit model this research employs covariance-based sem to test the hypotheses using the lisrel statistical application. one of the prerequisites for sem-based covariance analysis is the normality of the data. in this study, the maximum likelihood (ml) method was utilized to ensure that the data met this requirement. the ml method is recognized for yielding valid, stable, efficient, and unbiased estimates, thereby enhancing the reliability of model measurements. the results of the fit model analysis indicate that the model meets the criteria for a good fit. specifically, the indicators for each variable or dimension exhibit average scores of approximately 4 or higher, demonstrating a strong alignment with the hypothesized relationships. the detailed findings are presented in the table 3 below. as illustrated in the table 4, the influencer variable achieved the highest average score, followed by the pi variable and the fomo variable. these findings underscore the significant role of influencers in shaping consumer behavior and enhancing purchase intentions through the mechanisms of fomo. overall, the results affirm that the sem model provides a robust framework for understanding the interplay between these variables. table 3: fit model results. overall fit results standard conclusion absolute fit measure χ2 smaller good fit rmsea 0,068 ≤ 0,08 good fit gfi 0,98 ≥ 0,90 good fit incremental fit measure ifi 1,00 ≥ 0,90 good fit nfi 0,99 ≥ 0,90 good fit cfi 1,00 ≥ 0,90 good fit parsimonious fit measure pnfi 0,13 ≤ 0,90 good fit pgfi 0,095 ≤ 1,00 good fit sources: output results by sem lisrel 8.80 agbioforum, 26(1), 2024 | 99 septiana et al. — fear of missing out behaviour: an indonesian consumer’s perspective of food and beverage table 4: descriptive statistics of data responses toward variable items. item 1 2 3 4 5 standard deviation mean grand mean sosial media marketing-entertainment (smmen) smmen1 1 6 107 174 182 0,8 4,13 4,13 smmen2 2 5 123 139 201 0,8 4,13 smmen3 2 6 96 144 222 0,9 4,13 sosial media marketing-interaction(smmint) smmint1 1 8 121 156 184 0,8 4,09 4,11 smmint2 2 7 111 123 227 0,9 4,20 smmint3 1 6 126 180 157 0,84 4,03 sosial media marketing-tren (smmtrd) smmtrd1 2 5 134 153 176 0,8 4,05 4,10 smmtrd2 1 4 121 162 182 0,8 4,10 smmtrd3 1 6 111 151 201 0,8 4,16 social media marketing-customization(smmcus) smmcus1 2 6 145 173 144 0,8 3,96 4,03 smmcus2 2 8 121 175 164 0,83 4,05 smmcus3 2 3 111 198 156 0,89 4,07 sosial media marketing-ewom (smmewom) smmewom1 1 2 102 180 185 0,9 4,16 4,08 smmewom2 1 5 104 216 144 0,9 4,06 smmewom3 1 7 101 237 124 0,9 4,01 fomo fomo1 1 5 87 146 231 0,9 4,28 4,20 fomo2 1 6 77 200 186 0,9 4,2 fomo3 1 2 81 185 201 0,9 4,24 fomo4 2 5 97 179 187 0,8 4,16 fomo5 1 7 90 194 178 0,9 4,15 fomo6 1 4 103 161 201 0,9 4,19 fomo7 1 6 98 167 198 0,9 4,2 fomo8 2 7 87 173 201 0,9 4,2 pi puin1 1 5 97 178 189 0,9 4,17 4,21 puin2 2 6 75 192 195 0,9 4,2 puin3 1 9 82 180 198 0,9 4,2 puin4 2 5 72 206 185 0,9 4,2 puin5 1 4 66 198 201 0,9 4,3 puin6 1 6 87 190 186 0,9 4,17 influencer (inf) inf1 1 3 82 163 221 0,9 4,2 4,23 inf2 2 5 96 124 243 0,9 4,2 inf3 1 3 83 216 167 0,9 4,2 inf4 2 4 79 195 190 0,9 4,2 inf5 1 4 74 186 205 0,9 4,3 inf6 1 5 67 191 206 0,9 4,3 results of hypothesis, effect of mediation, and effect of moderation table 3 indicates that the overall model fits well, confirming the adequacy of the structural relationships posited in the research. according to the results presented in table 5, all eleven hypotheses derived from the sem estimates are supported. this suggests that each dimension of social media marketing entertainment, interaction, trendiness, customization, and e-wom exerts a positively significant influence on both the fomo and pi. notably, e-wom emerged as a particularly impactful dimension, exhibiting an estimated effect of 58% on fomo, the highest among the various dimensions of social media marketing. similarly, e-wom showed a substantial estimated value of 53% concerning pi, further underscoring its significance in influencing consumer behavior. as depicted in table 6, fomo plays a mediating role between all dimensions of social media marketing (entertainment, interaction, trendiness, customization, and e-wom and pi. this finding highlights the importance of fomo in enhancing the relationship between social media marketing activities and consumer purchasing behaviors. table 7 illustrates that influencers serve a moderating role between all dimensions of social media marketing (entertainment, interaction, trendiness, customization, and e-wom) and fomo. among the dimensions, the entertainment aspect yielded the highest moderating effect, indicating that engaging and entertaining content can significantly amplify fomo among consumers, further driving purchase intentions. the comprehensive analysis demonstrates that social media marketing dimensions positively influence both fomo and purchase intention, with e-wom being particularly impactful. additionally, the mediating role of fomo and the moderating influence of influencers reveal critical pathways through which social media marketing can effectively shape consumer behaviors. these findings provide valuable insights for agbioforum, 26(1), 2024 | 100 septiana et al. — fear of missing out behaviour: an indonesian consumer’s perspective of food and beverage marketers aiming to optimize their strategies in the digital landscape. table 5: hypothesis results. hypothesis path analysis standardized value t-value decision hi smm entertainment → fomo 0,26 3,99 supported h2 smm interaction → fomo 0,37 7,57 supported h3 smm tren → fomo 0,08 2,11 supported h4 smm customisation → fomo 0,08 2,2 supported h5 smm e-wom → fomo 0,58 11,26 supported h6 fomo → pi 0,26 4,43 supported h7 smm entertainment → pi 0,11 3,21 supported h8 smm interaction→ pi 0,13 4,88 supported h9 smm tren → pi 0,09 2,4 supported h10 smm customisation→ pi 0,09 2,37 supported h11 smm e-wom→ pi 0,53 11,31 supported sources: output results by sem lisrel 8.80 table 6: mediation results. model path results decisions a b c ab ab+c ab/ab+c smm entertainment → fomo →pi 0,26 0,26 0,11 0,06 0,17 0,38 h12: partial mediation smm interaction→ fomo → pi 0,37 0,26 0,13 0,09 0,22 0,42 h13: partial mediation smm trendiness→ fomo→ pi 0,08 0,26 0,09 0,02 0,11 0,18 h14: partial mediation smm customization→ fomo → pi 0,08 0,26 0,09 0,02 0,11 0,18 h15: partial mediation smm e-wom→fomo→ pi 0,58 0,26 0,53 0,15 0,68 0,22 h16: partial mediation sources: output results by sem lisrel 8.80 table 7: moderations results. hypothesis estimate p decisions h17: smm entertainment x influencer -> fomo 0,09 0,000 positive significant (moderate) h18: smm interaction x influencer -> fomo 0,08 0,000 positive significant (moderate) h19: smm tren x influencer -> fomo 0,03 0,000 positive significant (moderate) h20smm customization x influencer -> fomo 0,03 0,000 positive significant (moderate) h21: smm ewom x influencer -> fomo 0,03 0,000 positive significant (moderate) sources: output results by sem lisrel 8.80 figure 1: moderation effect of influencer to smme & fomo. figure 2: moderation effect of influencer to smmi & fomo. figure 3: moderation effect of influencer to smm trend & fomo. figure 4: moderation effect of influencer to smm customization & fomo. figure 5: moderation effect of influencer to smm e-wom & fomo. agbioforum, 26(1), 2024 | 101 septiana et al. — fear of missing out behaviour: an indonesian consumer’s perspective of food and beverage figure 6: structural model research from lisrel. discussion the research findings indicate that all dimensions of tiktok social media marketing entertainment, interaction, trendiness, customization, and e-wom significantly and positively influence the fomo and pi. the positive impact of entertainment-focused content on fomo supports the findings of al-busaidi et al. (2022), who highlight that engaging content enhances information exchange. interviews reveal that entertaining tiktok content increases user engagement, aligning with prior literature, data showing indonesians spend an average of 34 hours per month on tiktok. notably, 91% of consumers expressed interest in entertaining content, although 22% reported dissatisfaction with overly salesfocused content. the interaction dimension also significantly affects fomo, corroborating fischer & reuber (2011). consumers appreciate interactive content, fostering two-way communication and feedback opportunities. this builds a sense of community, making consumers feel involved in the product development process. trend-driven content significantly elevates fomo levels, aligning with przybylski et al. (2013). consumers favor content that incorporates current trends, as reflected by 75% expressing interest in trend-based information. however, 25% felt that the marketing content lacked trend alignment, suggesting a need for continuous adaptation. customization is positively associated with fomo, echoing swar & hameed (2017). providing tailored options enhances consumer satisfaction, with 75% of respondents feeling that food and beverage msmes effectively address their needs. nonetheless, 25% still find the offerings insufficiently tailored. the e-wom dimension also significantly influences fomo, reinforcing the findings of aydin et al. (2021). a strong 77% of consumers expressed interest in engaging with viral content, although 22% refrained from recommending content that didn't meet their expectations. the entertainment dimension's positive effect on pi supports bushara et al. (2023). while 74% of consumers were interested in tiktok content, 27% expressed disinterest due to a lack of engaging material. similar to fomo, the interaction dimension positively influences pi, aligning with cui et al. (2019). while 74% of consumers felt engaged, 26% noted a preference for more interactive content. this study contradicts prior research (oscarius yudhi ari wijaya et al., 2021; vizano et al., 2021) by establishing a significant relationship between trendiness and pi, supported by 73% of consumers expressing interest in trendy content. this discrepancy may stem from differing research contexts. customization positively affects pi, as supported by kim & lee (2021). consumer feedback revealed that tailored services enhance satisfaction, although 25% still felt offerings could be improved, e-wom positively impacts pi, affirming liao, chung, & chang (2019). a substantial 77% of respondents were encouraged by popular content, yet 23% remained hesitant to recommend products that did not meet their expectations. fomo serves as a crucial mediator, enhancing the relationship between social media marketing dimensions and pi, aligning with al-busaidi et al. (2022) and ilyas et al. (2022). approximately 80% of consumers recognized that engaging content generates fomo, subsequently increasing purchasing intentions. however, 20% felt indifferent due to insufficient fomoinducing content. effective tiktok marketing for food and beverage msmes should leverage the five dimensions of social media marketing to foster fomo. strategies that invoke scarcity, such as "limited edition" or "only for the first 100 people," resonate strongly, with 98% of consumers acknowledging the effectiveness of such prompts. influencers play a moderating role in enhancing the impact of social media marketing on fomo, supporting findings by dinh et al. (2023). effective influencer content should incorporate all five dimensions. consumer feedback indicates a strong emotional connection to influencers, with 85% feeling disappointed if they miss influencer content. however, 15% of consumers reported feeling disconnected, highlighting the need for alignment between influencer characteristics and agbioforum, 26(1), 2024 | 102 septiana et al. — fear of missing out behaviour: an indonesian consumer’s perspective of food and beverage brand values. different categories of influencers (nano, micro, macro, mega) influence consumer perceptions and engagement. while 65% of consumers follow mega and macro influencers for their fame, they report lower interaction levels. in contrast, micro and nano influencers foster stronger connections due to more frequent content updates and relatable engagements. overall, the research emphasizes the critical roles of social media marketing dimensions and influencers in shaping consumer fomo and purchasing intentions, providing actionable insights for food and beverage msmes on tiktok. theoretical, managerial and policy contributions this research demonstrates that the five dimensions of social media marketing entertainment, interaction, trendiness, customization, and e-wom are interdependent in creating effective marketing content for food and beverage msmes on tiktok. by integrating the sor theory and social influence theory, the study reinforces these theoretical frameworks. the findings contribute to a deeper understanding of how social media marketing dimensions collectively influence consumer behavior and can be adapted to various industries and contexts beyond indonesia. it is advisable for the government to expand the micro-small business training and mentoring program to enhance the digital marketing skills of msmes across indonesia. this training should focus on creating compelling social media content that fosters e-wom and fomo, ultimately driving consumer purchasing intentions. food and beverage msmes should invest in training to enhance their content creation skills. collaborating with influencers is crucial for increasing fomo; however, they must choose influencers with credibility that resonates with their target audience. a systematic approach to evaluating the effectiveness of influencer collaborations monitoring metrics such as likes, follower increases, and engagement is essential. to meet consumer expectations, msmes must prioritize excellent service, both online and offline. this enhances customer trust and encourages sharing of positive experiences, potentially leading to viral content. conclusions, limitations and future research this research underscores the importance of the five dimensions of social media marketing, demonstrating their combined effect on fomo and purchase intention (pi) among indonesian food and beverage msmes on tiktok. notably, the e-wom dimension exhibits the most significant influence, accounting for over 50% of the effect on fomo and pi. however, some msmes still produce content lacking these critical dimensions. the study does not account for the timing and frequency of effective tiktok uploads. future research could explore these variables to better understand their impact on fomo and pi. additionally, while the research shows that tiktok content can directly influence fomo and pi, it also suggests that the level of fomo varies across generations based on their social media literacy. understanding target demographics is essential for crafting appropriate marketing content. researchers should investigate which types of influencers have the most significant impact on consumer behavior. exploring targeted content strategies for various segments of food and beverage msmes in indonesia, as well as the broader context, would provide valuable insights. as fomo increases, consumer engagement with content intensifies, leading to potential vitality and e-wom. for this to be effective, msmes must be prepared to deliver outstanding service, both online and offline. establishing a dedicated social media management team and ensuring excellent customer service across all touchpoints will help align consumer expectations with actual experiences. references agarwal, s., & mewafarosh, r. 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https://doi.org/10.1016/j.bushor.2014.07.002 https://doi.org/10.1108/jamr-05-2020-0067 https://doi.org/10.13106/jafeb.2021.vol8.no4.0441 https://doi.org/10.13106/jafeb.2021.vol8.no4.0441 https://doi.org/10.1080/10454446.2010.509242 https://doi.org/10.1177/0266666915603224 https://doi.org/10.1108/itp-09-2019-0490 https://artseduca.com/submissions/index.php/ae/article/view/321 https://artseduca.com/submissions/index.php/ae/article/view/321 https://cirrj.org/menuscript/index.php/cirrj/article/view/727 https://cirrj.org/menuscript/index.php/cirrj/article/view/727 https://doi.org/10.5817/cp2023-5-7 https://doi.org/10.3389/fpsyg.2022.792419 agbioforum, 26(2): 122-129. ©2024 agbioforum atrizka et al — effectiveness of audit tenure, audit rotation, and institutional ownership on audit quality and sustainable growth… effectiveness of audit tenure, audit rotation, and institutional ownership on audit quality and sustainable growth in indonesian plc diny atrizka* universitas medan area, medan, sumatera utara, indonesia orcid: https://orcid.org/0000-0002-0990-1505 email: diny.dinyrizk@gmail.com jenny morasa universitas sam ratulangi, manado, indonesia orcid: https://orcid.org/0009-0003-8048-573x email: jennymorasa@unsrat.ac.id yenni samri juliati nasution universitas islam negeri sumatera utara, medan, indonesia. orcid: https://orcid.org/0000-0002-4776-5751 email: yenni.samri@uinsu.ac.id sumarno manrejo universitas bhayangkara jakarta raya, jakarta, indonesia orcid: https://orcid.org/0000-0002-1012-4985 email: sumarno@dsn.ubharajaya.ac.id arfan ikhsan universitas negeri medan, medan, indonesia orcid: https://orcid.org/0009-0000-2711-4882 email: arfanikhsan@unimed.ac.id the sustainable growth of businesses has emerged as a global necessity owing to the escalating volatility in the international business landscape. this significant issue requires concentrated academic research. this study examines the impact of audit tenure, audit rotation, and institutional ownership on audit quality and the sustainable growth of publicly listed firms in indonesia. furthermore, it investigates the mediating function of audit quality in the correlations among audit tenure, audit rotation, institutional ownership, and sustainable growth. data were gathered from the proprietors of chosen plcs using survey questionnaires, and spss-amos was utilised to investigate the interrelationships among variables. the outcome of the research showed that audit tenure, audit rotation, and institutional ownership have a favourable correlation with audit quality and sustainable growth. moreover, the findings indicate that audit quality functions as a crucial mediator in these associations. the research provides significant insights for policymakers, indicating that sustainable growth in plcs can be improved by well formulated audit tenure policies, efficient audit rotation processes, and strong institutional ownership structures. keywords: audit tenure, audit rotation, institutional ownership, audit quality, sustainable growth, public listed companies. introduction the necessity for sustainable growth has become a primary concern for businesses in the indonesian market, motivated by the requirement to guarantee long-term survival and satisfy stakeholder interests. publicly listed companies (plcs) in indonesia are increasingly acknowledging the imperative to connect their plans with sustainable growth objectives, which not only ensure future profitability but also incorporate environmental and social issues into business processes. in this setting, audit tenure, audit rotation, and institutional ownership are critical components of corporate governance. an analysis of these antecedents highlights their impact on audit quality and, thus, the sustainability of corporate performance. examining these correlations yields significant insights into how effective governance frameworks might promote sustainable growth in indonesian public limited companies. audit tenure—the length of time an audit firm has been with a company—affects sustainable growth. advocates say long-term employment helps auditors understand a company's operations, boosting financial reporting. judge, goodson, & stefaniak (2024) highlight that stakeholder confidence is essential for organisational development and growth. extended tenure may compromise auditor independence, leading to complacency or collusion, according to daoust & malsch (2020). although research shows a positive correlation between audit tenure and sustainable growth in indonesian public listed businesses, this link needs further analysis to evaluate the benefits of continuity against auditor impartiality risks. audit rotation, an essential governance measure, involves the regular substitution of audit firms to reduce potential biases and excessive familiarity. according to garcíahernández, duréndez, & rojo-ramírez (2023), this method offers new insights, diminishes bias, and mitigates the potential for collusion, thereby guaranteeing precise financial reporting and effective decision-making. audit rotation strategies enhance investor confidence and promote long-term sustainability. malagila, bhavani, & amponsah (2020) contend that regular external evaluations enhance corporate accountability and foster sustainable business practices within indonesian public limited companies. institutional ownership, characterised by the holdings of institutional investors like pension and mutual funds, is vital for fostering sustainable growth. mehrpouya & salles-djelic (2019) assert that these investors, motivated by long-term financial objectives, frequently advocate for enterprises to implement management practices that are congruent with sustainability and corporate responsibility. in indonesia, institutional ownership profoundly impacts corporate governance, allowing shareholders to influence strategic choices that promote sustainability. audit quality serves as a vital intermediary in these interactions, alleviating the risks linked to prolonged auditor engagements and guaranteeing the provision of clear and dependable financial reports. buallay & al-ajmi (2020) propose that superior audits might mitigate the difficulties associated with extended audit tenures, hence bolstering investor trust and corporate stability. furthermore, cameran, campa, & francis (2022) assert that high-quality audits ensure accurate financial reporting, thereby promoting sustainable growth and enhancing https://orcid.org/0000-0002-0990-1505 mailto:diny.dinyrizk@gmail.com https://orcid.org/0009-0003-8048-573x mailto:jennymorasa@unsrat.ac.id https://orcid.org/0000-0002-4776-5751 mailto:yenni.samri@uinsu.ac.id https://orcid.org/0000-0002-1012-4985 mailto:sumarno@dsn.ubharajaya.ac.id https://orcid.org/0009-0000-2711-4882 mailto:arfanikhsan@unimed.ac.id agbioforum, 26(2), 2024 | 123 atrizka et al — effectiveness of audit tenure, audit rotation, and institutional ownership on audit quality and sustainable growth… stakeholder trust. the mediating role of audit quality is similarly significant in the context of audit rotation. regular auditor transitions provide varied viewpoints; nonetheless, their efficacy is contingent upon the incoming auditors' capacity to uphold rigorous quality standards (ndaba, harber, & maroun, 2021). superior audit quality throughout transitions guarantees that the advantages of rotation, including diminished bias and increased scrutiny, are achieved without negative effects on reporting. audit quality enhances the connection between institutional ownership and sustainable growth by delivering reliable information that promotes effective decision-making. saeed et al. (2022) contend that dependable financial reporting enhances investor trust and motivates management to implement sustainability-oriented measures, hence fostering a virtuous cycle of growth. this study examines how audit tenure, audit rotation, and institutional ownership affect indonesian plcs' sustainable growth. it also studies audit quality's mediation of these connections. by integrating audit quality as a mediator, this study fills a gap in the literature by offering a holistic view of how governance practices affect sustainability results. this study examines corporate governance and sustainability in the underexplored indonesian context, unlike previous studies that examined these variables separately. the following sections of this study will examine the pertinent literature, develop hypotheses, and outline the research methodology utilised. the subsequent section will address the results, conclusions, policy implications, and limitations of the study. literature review audit tenure refers to the duration of the professional relationship between auditors and their clients, and it has emerged as a significant focus of analysis concerning its influence on sustainable corporate development. prolonged auditor tenure enables auditors to gain in-depth knowledge of the company, its operational environment, and associated risks, thereby enhancing the reliability and credibility of financial reports. judge et al. (2024) highlighted that extended audit tenure equips auditors with specialised insights into the client’s business, resulting in improved financial reporting and better support for longterm decision-making. similarly, van nieuw amerongen et al. (2022) observed that long-standing audit relationships reduce the time required for auditors to familiarise themselves with the client’s operations, thus enhancing audit efficiency. this efficiency facilitates the alignment of strategic planning with sustainable growth objectives. however, they acknowledged that prolonged tenure could pose risks to auditor independence, necessitating safeguards to maintain objectivity. additionally, velte (2023) noted that extended audit tenure fosters trust with management and synergy in addressing strategic challenges, which is particularly vital for firms operating in emerging economies. such integration is essential as regulatory demands and stakeholder pressures for environmental management and disclosure continue to evolve. in light of these findings, it can be asserted that, h1: audit tenure has a positive impact on sustainable growth. audit firm rotation is a well-known method for improving auditor independence and accountability by changing audit firms at regular intervals to enable sustainable growth. kelly & larres (2025) claim that new auditors reduce biases, increase competition, and increase financial scepticism. these methods ensure audits are fair and transparent, enabling long-term sustainable company decisions. malagila et al. (2020) examined how required audit rotation reduces collusion. based on their findings, auditor rotation decreases close auditor-client connections, boosting financial report reliability. this, in turn, restores stakeholder confidence and encourages sustainable investments. moreover, audit rotation strengthens governance frameworks, indirectly supporting organisational growth strategies. by preventing stagnation in audit practices, rotation ensures that firms remain responsive to evolving business conditions, as noted by tessema & abou-el-sood (2023). this adaptability, supported by flexible institutional structures, promotes proven strategies that simultaneously achieve profitability and sustainability. in the context of emerging markets like indonesia, where organisational governance regulations require further development, audit practices play a pivotal role in aligning corporate objectives with sustainable growth imperatives. therefore, we propose that, h2: audit rotation has a positive impact on sustainable growth. extensive literature highlights institutional ownership as a significant factor in strengthening corporate governance and achieving sustainable firm performance, which is critical for long-term development. velte (2024) argued that institutional owners, due to their substantial block holdings, exert considerable monitoring pressure on corporate boards to prioritise sustainable, long-term policies over short-term gains. the inherent long-term perspective of institutional ownership ensures that firms adopt strategies aligned with sustainability objectives. mehrpouya & salles-djelic (2019) emphasised that institutional investors have played a crucial role in driving governance reforms, particularly in areas such as transparency and accountability. their active participation fosters corporate behaviours that prioritise environmental stewardship and address key social and economic challenges, all of which are essential for sustainable development. furthermore, institutional ownership helps firms navigate complex regulatory environments, as these investors often advocate for policies that create favourable conditions for sustained operations. institutional investors are also highly responsive to stakeholder demands regarding sustainability, recognising the correlation between robust sustainability policies, stable stock performance, and reduced risk (kavadis & thomsen, 2023). this influence shapes business models in which sustainability becomes a core component of growth strategies within organisations. therefore, we propose the hypothesis that, h3: institutional ownership has a positive impact on sustainable growth. agbioforum, 26(2), 2024 | 124 atrizka et al — effectiveness of audit tenure, audit rotation, and institutional ownership on audit quality and sustainable growth… audit quality is a key mediator between audit tenure and sustainable growth. high-quality audits keep financial reporting accurate, dependable, and transparent, supporting long-term strategic planning. cameran et al. (2022) noted that extended audit tenure can increase audit quality by increasing auditor specialisation and client business identification. this audit quality improvement boosts financial statement credibility, enabling sustained growth-aligned decision-making. raweh et al. (2021) noted that long-term auditor-client relationships build management confidence. this trust lets auditors investigate financial policies and operations to connect organisational efforts with strategic and sustainability goals. any drop-in audit quality during the auditor's employment could negate these gains. we conclude that audit quality mediates audit tenure and sustainable growth. we therefore hypothesise, h4: audit quality mediates the relation between audit tenure and sustainable growth. audit quality serves a crucial mediating function in the relationship between audit rotation and sustainable growth, ensuring the integrity and precision of financial reporting during auditor transitions. lin & yen (2022) highlighted that audit rotation offers a valuable opportunity to introduce fresh perspectives, ultimately enhancing the overall quality of audits. new auditors bring diverse methodologies and approaches to the evaluation of financial statements, allowing for more thorough audits that align with the long-term sustainability goals of the organisation. however, as noted by ndaba et al. (2021), the effectiveness of audit rotation in promoting sustainability relies heavily on the expertise and diligence of the incoming auditor. although the early stages of audit rotation may introduce temporary disruptions, maintaining high audit quality during this transition period is essential to uphold the consistency and reliability of financial reporting, which is vital for the successful execution of growth strategies (francis, 2023). additionally, audit quality helps alleviate uncertainties surrounding financial reporting by providing stakeholders, particularly investors, with accurate and transparent information. this level of transparency fosters trust and promotes long-term investments, contributing to a sustainable organisational culture. for example, companies that share comprehensive operational details instil confidence in investors, encouraging long-term commitment to sustainable growth objectives. based on these considerations, we propose the following hypothesis: h5: audit quality mediates the relation between audit rotation and sustainable growth. audit quality moderates the impact of institutional ownership on sustainable growth, as the latter relies on financial statement accuracy and transparency. due to their large investments, institutional investors require good corporate governance and financial reporting. tsouknidis (2019) noted that institutional ownership prioritises enterprises with precise and transparent records for sustained returns. therefore, high audit quality helps institutional investors by giving reliable financial data, enabling detailed financial analysis, and supporting smart decision-making. ruiz-barbadillo & martínez-ferrero (2020) found that institutional ownership generally encourages sustainable strategies and practices in enterprises. audit quality builds the trust institutional investors need to actively participate in company governance. institutional investors can encourage sustainable development by pushing for and adopting profitable and sustainable methods where audit quality is high. this ensures long-term firm growth and stability. according to kooli (2019), excellent audit quality allows institutional ownership to match marketing tactics with sustainable development goals, putting these principles at the centre of the organisation's growth. our hypothesis is that, h6: audit quality mediates the relation between institutional ownership and sustainable growth. research methodology this research explores the influence of audit tenure, audit rotation, and institutional ownership on audit quality and sustainable growth in indonesia. data was collected from plc owners through structured surveys. to measure the key variables, established scales were used: audit tenure with four items (rapley, robertson, & smith, 2021), audit rotation with six items (gwala & nomlala, 2021), institutional ownership with five items (solikhah et al., 2022), audit quality with five items (albawwat & frijat, 2021), and sustainable growth with four items (hussain, rasheed, & rehman, 2024). employing a purposive sampling approach, the study targeted plc owners as respondents. the surveys were distributed both via email and through direct visits to institutions. out of 602 surveys sent, 357 valid responses were received, yielding a response rate of approximately 59.30%. for data analysis, spss-amos was utilised, a robust tool known for its ability to handle large datasets and complex models, ensuring reliable and precise results (hair, howard, & nitzl, 2020). the conceptual framework of the study incorporates three independent variables—audit tenure (at), audit rotation (ar), and institutional ownership (io)—along with a mediating variable, audit quality (aq), and a dependent variable, sustainable growth (sg), as visually represented in figure 1. figure 1: research model. audit tenure institutional ownership sustainable growth audit quality audit rotation agbioforum, 26(2), 2024 | 125 atrizka et al — effectiveness of audit tenure, audit rotation, and institutional ownership on audit quality and sustainable growth… research findings factor loadings and average variance are used to investigate item relationships after convergent validity assessment. the results showed good convergent validity with ave values above 0.50. composite reliability (cr) results exceeded 0.70, confirming construct reliability. the study also examined the maximum shared variance (msv) and average shared variance (asv) that were less than the ave, demonstrating discriminant validity. the data in table 1 show a strong association between the items. table 1: convergent validity. constructs items loadings cr ave msv asv audit rotation ar1 <--ar 0.649 0.866 0.627 0.517 0.269 ar2 <--ar 0.624 ar3 <--ar 0.620 ar4 <--ar 0.675 ar5 <--ar 0.992 ar6 <--ar 0.980 institutional ownership io1 <--io 0.898 0.896 0.599 0.333 0.213 io2 <--io 0.861 io3 <--io 0.624 io4 <--io 0.523 io5 <--io 0.644 sustainable growth sg1 <--sg 0.750 0.841 0.525 0.240 0.349 sg2 <--sg 0.778 sg3 <--sg 0.625 sg4 <--sg 0.619 audit quality aq1 <--aq 0.979 0.789 0.585 0.240 0.481 aq2 <--aq 0.884 aq3 <--aq 0.655 aq4 <--aq 0.583 audit tenure at1 <--at 0.719 0.880 0.649 0.533 0.358 at2 <--at 0.784 at3 <--at 0.896 at4 <--at 0.814 this study explores the correlation between the variables, assessed for discriminant validity using the fornelllarcker criterion. the results indicated that each variable's correlation with itself was higher than its correlation with other variables, demonstrating strong discriminant validity. this suggests that the variables are distinct and not excessively correlated with one another. the findings reveal a low level of correlation between the variables, with the corresponding values presented in table 2. table 2: discriminant validity. aq ar io sg at aq 0.792 ar 0.314 0.774 io 0.477 0.438 0.825 sg 0.719 0.577 0.735 0.997 at 0.482 0.479 0.661 0.730 0.806 figure 2: measurement model assessment. agbioforum, 26(2), 2024 | 126 atrizka et al — effectiveness of audit tenure, audit rotation, and institutional ownership on audit quality and sustainable growth… this study examines the direct relationships between variables through regression analysis. the findings indicated that audit tenure, audit rotation, and institutional ownership each have a positive relationship with both audit quality and sustainable growth in publicly listed companies (plcs) in indonesia. as a result, hypotheses h1, h2, and h3 are supported. these associations are detailed in table 3. table 3: direct path analysis. relationships beta s.e. c.r. p audit quality <--audit tenure 0.121 0.043 2.783 0.005 audit quality <--audit rotation 0.204 0.043 4.760 0.000 audit quality <--institutional ownership 0.332 0.040 8.268 0.000 sustainable growth <--audit tenure 0.206 0.036 5.728 0.000 sustainable growth <--institutional ownership 0.285 0.036 7.939 0.000 sustainable growth <--audit rotation 0.255 0.036 7.018 0.000 sustainable growth <--audit quality 0.309 0.043 7.116 0.000 this study explores the direct relationships among variables through regression analysis. the results further demonstrate that audit quality plays a significant mediating role in the relationships between audit tenure, audit rotation, institutional ownership, and sustainable growth in plcs in indonesia. consequently, hypotheses h4, h5, and h6 are supported. these mediating associations are outlined in table 4. table 4: indirect path analysis. audit tenure audit rotation institutional ownership audit quality audit quality 0.000 0.000 0.000 0.000 sustainable growth 0.110 0.009 0.027 0.000 figure 3: structural model assessment. discussion the results of this research significantly contribute to the understanding of the impact of audit tenure, audit rotation, and institutional ownership on the sustainable growth of indonesian plcs, with audit quality serving as a mediator. the study reveals contrasting but interconnected effects of these variables on sustainability, providing valuable insights into corporate governance practices. audit tenure, which refers to the duration of an auditor's engagement with a company, clearly impacts sustainable growth. extended audit tenure allows auditors to gather in-depth knowledge about a company, thereby improving the accuracy of financial reports and increasing stakeholder confidence. however, the risk of compromised independence due to prolonged familiarity with the client remains a concern. the findings support previous research, such as lin & yen (2022), which underscores the positive effects of continuity in audit engagements on financial reporting. additionally, kamarudin, wan ismail, & ariff (2022) noted that extended audit tenure enhances auditors' ability to identify irregularities, thus fostering long-term corporate stability. in the indonesian context, long-term auditor tenure is crucial for developing sustainable business strategies, if auditor independence is upheld. audit rotation, the practice of periodically changing audit firms, is effectively linked to sustainable growth by minimizing risks. it brings in fresh perspectives, ensuring regular assessment and evaluation of financial activities. scholars such as malagila et al. (2020) argue that audit rotation increases accountability and boosts investor confidence. furthermore, tessema & abou-el-sood (2023) highlight that audit rotation strengthens auditor independence, creating a better balance in evaluating agbioforum, 26(2), 2024 | 127 atrizka et al — effectiveness of audit tenure, audit rotation, and institutional ownership on audit quality and sustainable growth… financial statements. these findings support indonesia's regulatory provision recommending periodic auditor rotation to improve the sustainability of corporate performance. institutional ownership, particularly among long-term investors, is another key factor influencing sustainable growth. institutional investors exert pressure on corporations to adopt policies and practices that focus on long-term goals. this aligns with research by erhemjamts & huang (2019), which suggests that institutional ownership positively impacts governance and long-term performance. kavadis & thomsen (2023) further emphasize the role of institutional ownership in motivating corporate changes towards sustainable practices. in the indonesian market, institutional ownership is becoming increasingly prominent, and its role in promoting sustainability policies is growing clearer. audit quality serves a vital function as a mediator between audit tenure and sustainable growth. high audit quality ensures financial report reliability, reducing the risks of prolonged auditor engagements. kumar (2024) emphasises the importance of audit quality in corporate governance outcomes. according to brooks, gill, & wong-on-wing (2019), good audit quality can mitigate risks from long-term auditor-client interactions. this study emphasises the importance of audit quality to strengthen the auditor-plc relationship and sustain indonesian plc growth. audit quality mediates auditor rotation, ensuring financial reporting consistency despite disruptions. sustainable economic development requires trustworthy reporting during changes, which high-quality audits ensure. to maximise audit rotation benefits, malagila et al. (2020) note that audit quality must be maintained. francis (2023) adds that strong audit quality reduces auditor change risks. quality audits help indonesian plcs turn compliance into sustainability. finally, audit quality improves financial information trustworthiness, mediating institutional ownership and sustainable growth. high-quality audits help institutional investors steer companies towards sustainability. this is similar with ramalingegowda, utke, & yu (2021), who found that institutional investors rely on financial disclosures. ruiz-barbadillo & martínez-ferrero (2020) acknowledge audit quality's importance in harmonising institutional ownership and sustainability goals. in indonesia, strong audit practices help institutional investors demand sustainability, enhancing ownership structure and long-term corporate success. implications this study provides valuable implications for policymakers, corporate managers, and auditors of indonesian plcs. the research underscores the importance of audit tenure, audit rotation, and institutional ownership in fostering sustainable growth, with audit quality acting as a moderator in these relationships. for policymakers, the study suggests that strengthening regulations around audit practices is crucial for promoting good governance and ensuring long-term sustainability. by implementing policies that encourage independent yet continuous audit engagements, governments can help ensure that auditors maintain a deep understanding of the companies they audit while also safeguarding their independence. these regulations can contribute to more reliable financial reporting and better decision-making by stakeholders, which is essential for achieving sustainable growth. corporate managers can also benefit from the study’s findings by adopting policies that balance the benefits of extended audit tenure with the necessity for audit rotation. by fostering strong relationships with institutional investors, managers can align corporate strategies with sustainable development goals, which will not only improve governance but also enhance long-term corporate performance. the study encourages managers to consider sustainability as a core element in their strategic planning, supported by effective and transparent audit practices. for auditors, the study emphasizes the importance of maintaining high standards of audit quality throughout their tenure, especially when there are changes in auditors or management. high-quality audits contribute to the credibility and reliability of financial reports, thus supporting better governance practices and corporate accountability. auditors are urged to be vigilant in upholding their professional standards to withstand external pressures and promote sustainability in the companies they serve. limitations this study has significant drawbacks. the study only included indonesian publicly listed companies; thus, its findings may not apply to other firms. indonesian regulatory, cultural, and market conditions may differ from those in other nations, therefore results should be interpreted accordingly. second, the study's data analysis may have missed several audit procedures and sustainable growth elements. this study did not include macroeconomic conditions, industry-specific factors, or corporate governance factors that could affect audit tenure, audit rotation, institutional ownership, and sustainable growth. third, the study's cross-sectional design limits its causality analysis. the study finds substantial connections but cannot show that one variable change another. future study could use a longitudinal approach to further understand how these linkages alter over time and if audit practices or institutional ownership led to sustainable growth. due to these limitations, future studies could include firms from different countries or regions, include additional variables that may affect audit quality and sustainability, and use longitudinal data to better understand the relationships explored in this study. references albawwat, i., & frijat, y. 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thailand. orcid id: https://orcid.org/0000-0002-0604-4560 email: rungkiat_kaw@dusit.ac.th ravee ganeshaborirak* program in agriculture, faculty of agricultural production, mae jo university, thailand. orcid id: https://orcid.org/0009-0003-3913-6669 email: raveeganesha@gmail.com this study aimed to evaluate species diversity and population dynamics of citrus insect pests and their associated natural enemies in the chiang mai and lamphang provinces. additionally, it examined the biology and feeding potential of selected natural enemies to support the development of an integrated pest management (ipm) programme. analysis of population dynamics identified the lime butterfly (papilio demoleus, lepidoptera: papilionidae), citrus leaf miner (phyllocnistis citrella, lepidoptera: phyllocnistidae), yellow citrus aphid (aphis citricola, hemiptera: aphididae), and thrips (thrips spp., thysanoptera: thripidae) as major insect pests affecting citrus crops year-round. among the 26 species of natural enemies observed, the stink bug eocanthecona furcellata (hemiptera: pentatomidae), assassin bug sycanus collaris (hemiptera: reduviidae), and green lacewing mallada basalis (neuroptera: chrysopidae) emerged as potential predators for augmentative biological control of key pests. species diversity was found to play a critical role in sustainable pest management strategies, as evidenced by a strong positive correlation (r = 0.82) between pest populations and their natural enemies. the feeding efficacy of the three selected predators was also assessed. eocanthecona furcellata and sycanus collaris demonstrated high potential in suppressing major lepidopterous pests, with feeding rates of 5.62±1.33 and 4.25±2.14 caterpillars per day, respectively. conversely, mallada basalis exhibited significant potential for controlling leaf-sucking pests, including aphids, whiteflies, scale insects, and thrips. the study thus underscores the biological and predatory potential of these natural enemies, advocating their use in ipm programmes to manage citrus pests effectively. keywords: citrus insect pests, natural enemies, biological control, pest management, species diversity, citrus crops. introduction citrus crops globally are threatened by approximately 87 insect pest species (riddick, 2022). in thailand, the primary insect pests impacting citrus production include nine significant species: the lemon butterfly (papilio spp.), the leaf miner (phyllocnistis citrella), the citrus fruit borer (citripestis sagittiferella), the asian citrus psyllid (diaphorina citri), the brown citrus aphid (aphis citricola, hemiptera: aphididae), the citrus mealybug (planococcus citri, hemiptera: pseudococcidae), the scale insect (aonidiella aurantii, hemiptera: diaspididae), thrips (scirtothrips dorsalis, thysanoptera: thripidae), and the citrus rust mite (eutetranychus cendanai, acari: tetranychidae) (bueno et al., 2023; riddick, 2022; vermelho et al., 2024; ziaee & babamir-satehi, 2020). historically, citrus pests have been managed using chemical insecticides such as organophosphates, carbamates, and pyrethroids. however, the extensive application of these compounds has had significant adverse effects on biodiversity, ecological balance, and human health (nadeem et al., 2022). prolonged exposure to chemical pesticides has accelerated the development of resistance in pest populations, reducing the long-term efficacy of chemical control measures and leading to pest resurgence (shaw, nagy, & fountain, 2021). furthermore, the decline of natural enemy populations caused by these chemicals has exacerbated ecological imbalances, as the reduction of predators and parasites that naturally regulate pest numbers has disrupted ecosystem stability (vermelho et al., 2024). in recent years, the pursuit of sustainable pest management strategies has intensified interest in biological control, which employs natural enemies such as predators, parasitoids, and entomopathogens to suppress pest populations (bouri, arslan, & şahin, 2023; salem, hamzah, & el-taweelah, 2015). biological control is regarded as an environmentally friendly alternative to chemical insecticides because it minimises harm to nontarget organisms and reduces the risk of pesticide resistance (owili et al., 2024). a notable example of successful biological control is the use of the vedalia beetle (rodolia cardinalis) to manage cottony cushion scale (icerya purchasi) in california's citrus orchards. this initiative significantly reduced pest populations and has since served as a model for subsequent biological control programmes (fernando, hale, & shrestha, 2024; nadeem et al., 2022). citrus cultivators in thailand are increasingly adopting ipm programmes, which combine biological control with other pest management strategies to reduce reliance on chemical insecticides (scrinis & lyons, 2007; sharma et al., 2010). ipm aims to maintain pest populations below economically damaging thresholds while promoting biodiversity and ecological balance. recent research highlights the importance of utilising indigenous natural https://orcid.org/0000-0002-0604-4560 mailto:rungkiat_kaw@dusit.ac.th https://orcid.org/0009-0003-3913-6669 mailto:raveeganesha@gmail.com agbioforum, 26(3), 2024 | 2 kawpet et al. role of insect natural ememies integrated pest management of citrus insect pests enemies to enhance biological control efforts, as local species are typically better adapted to the regional environment and pest dynamics (mansour et al., 2018). this approach aligns with good agricultural practices (gap) and the principles of organic farming, which emphasise sustainable and environmentally friendly agricultural methods (damavandian, 2007; george, rao, & rahangadale, 2019). additionally, climate change and global trade have introduced new challenges to pest management in citrus cultivation. the spread of invasive species, such as the asian citrus psyllid (diaphorina citri), a vector of huanglongbing (hlb) or citrus greening disease, has severely impacted citrus industries in regions including the united states and asia (gelaye & negash, 2023; ullah et al., 2018). biological control, as part of ipm programmes, has proven effective in managing invasive pests and mitigating the effects of climate-induced shifts in pest behaviour and distribution (franco et al., 2004; itioka, inoue, & ishida, 1992). biological management is recognised as a fundamental component of sustainable agriculture (bažok, 2022). in response to the growing demand for sustainable solutions, ongoing research continues to focus on improving the efficacy and adoption of biological control methods in citrus pest management (deguine et al., 2021; smaili, boutaleb-joutei, & blenzar, 2020). the integration of biological control into ipm systems provides an effective approach to regulating insect populations while minimising the environmental and health risks associated with chemical pesticides, thereby contributing to global sustainability goals. material and methods population dynamic of citrus insect pests and associated natural enemies population data were collected from two provinces in northern thailand, chiang mai and lampang, representing organic and conventional farming systems. the sampling area size was 1,600 square metres per plot, with five subplots per plot across a total of 50 plots. the populations of citrus insect pests and their associated natural enemies were recorded following the methodology described by dent and walton (singerman & rogers, 2020). plants were tapped to dislodge insect samples onto a 20 × 30 cm plastic plate, and the collected samples were used to identify key insect pests and their natural enemies, which were preserved in plastic tubes containing an alcohol-glycerine-acetic acid (aga) solution. data collection included location details, host plants, area photographs, and geographic coordinates recorded using a gps device (garmin-oregon-450). morphological identification was conducted in the laboratory under a stereo zoom microscope, with voucher specimens prepared on permanent slides using canada balsam and hoyer’s solution. additionally, fifty percent of infested plant parts, comprising 5–10 pieces per sample, were collected and placed in plastic tubes containing 10 ml of 70% alcohol solution. the solution was shaken to separate insect and plant debris, and key insect pests and their natural enemies were identified and processed into voucher specimens. further samples were collected using an aspirator and processed with a cylinder extractor in the laboratory, where voucher specimens were prepared following the same procedure. the collected data were analysed to estimate population dynamics, track trends in population changes throughout the year, and identify key insect pests and their associated natural enemies. biology and predatory potential of selected natural enemies the biology of eocanthecona furcellata and sycanus collaris was documented in terms of their life cycle, life table, biological attributes, survival rate, fecundity, and fertility, following the methodology outlined by dent and walton (singerman & rogers, 2020). predator eggs were placed in round plastic containers (25 × 10 cm) containing ten mealworms and soaked cotton bolls, which were replaced every 24 hours until the bugs reached the reproductive stage. subsequently, 20 adult predators (sex ratio 1:1) were transferred to larger round plastic boxes (25 × 40 × 15 cm) equipped with artificial leaves to facilitate the reproductive stage. the duration of development and mortality at various developmental stages were recorded, enabling calculation of the mean duration of successive stages and subsequent life table analysis. the predatory potential of the insects was assessed by measuring daily prey consumption rates, providing insight into their efficacy as biological control agents. figure 1: rearing of e. furcellata equipment for biology study as follow tools for mass rearing, egg mass, watering and laying equipment. agbioforum, 26(3), 2024 | 3 kawpet et al. role of insect natural ememies integrated pest management of citrus insect pests the biology of the green lacewing, mallada basalis, was investigated by culturing citrus mealybugs on thai pumpkin fruit one month prior to the biological study, following the methodology outlined by dent and walton. the life history and growth ratio of the lacewing were initiated by placing mealybug-infested pumpkin fruit in a cylindrical plastic box covered with a ventilated steel mesh layer. under a light: dark cycle of 12:12 hours, lacewing adults were allowed to mate, and newly emerged adults were randomly paired and kept in a plastic box containing mealybug-infested pumpkin and cotton-soaked honey (figure 2). the pumpkin was replaced every 24 hours, and the duration of development and mortality at certain developmental stages were recorded by counting the surviving individuals at each stage. this data was used to calculate the mean duration of successive stages and subjected to life table analysis. to assess daily prey consumption, the eggs laid by lacewings on the mealybug masses (comprising 75% of the pumpkin surface area) were kept and allowed to hatch in the cylindrical plastic box. this determination was carried out using five larvae per replicate, with five replicates. additionally, to evaluate the reduction of mealybugs on the pumpkin surface area, control fruits with and without lacewing larvae were compared (figure 2). figure 2: mealybug-rearing tools subject to the biology of green lacewings data analysis population dynamics of citrus insect pests and their natural enemies were analysed using the mean number of insects, which were transformed to log (n) + 1 and presented as a bar chart. to evaluate the association between the pests and their natural enemies, the collected data were subjected to a regression equation, where the log of insect pest populations was denoted as y and natural enemies as x. the correlation coefficient (r) was used to indicate the strength and trend of their relationship (catling et al., 1977; morse, 1995).the life cycle and biological life table were analysed using pivotal age (x), the day period, and the proportion of females alive at age x (lx). it was assumed that equal investment in males and females would result in a 1:1 sex ratio. age-specific fecundity, or female eggs per female per day (mx), was calculated to generate an egg curve (lxmx), where the summation of all values provided the net reproductive rate of increase (ro). cohort generation time (tc) and intrinsic rate of increase (rc) were determined using biological life table analysis parameters, following the methods outlined by dent and walton. results and discussion population dynamic and correlation of citrus insect pests and associated natural enemies based on the survey and collection of plant hosts, citrus insect pests, and natural enemies from 33 districts in two provinces of northern thailand, chiang mai and lampang (table 1 and figure 3), the following citrus insect pests were identified: 1) caterpillars, including the lime butterfly agbioforum, 26(2), 2024 | 4 kawpet et al. role of insect natural ememies integrated pest management of citrus insect pests (papilio demoleus, lepidoptera: papilionidae), citrus leaf miner (phyllocnistis citrella, lepidoptera: phyllocnistidae), citrus fruit borer (citripestis sagittiferella, lepidoptera: pyralidae), and citrus rind borer (prays citri, lepidoptera: yponomeutidae); 2) aphids, including the asian citrus psyllid (diaphorina citri, hemiptera: psyllidae), yellow citrus aphid (aphis citricola, hemiptera: aphididae), hard wax scale (ceroplastes sinensis), black scale (saissetia oleae), citrus mealybug (planococcus citri, hemiptera: pseudococcidae), and thrips (thysanoptera: thripidae) (figures 4-6). table 1: the survey and collection of plant host, citrus insect pest and natural enemies from 33 districts in 2 provinces of northern thailand. no. location plant insect pest natural enemies 1 fang district, chiang mai orange and pomelo citrus yellow mite green lacewings orange, pomelo and lime thrips green lacewings 2 chaiprakarn district, chiang mai orange, kumquat and lime d. citri e. furcellata orange, lime and pomelo p. demoleus e. furcellata 3 chiang dao district, chiang mai pomelo bactrocera spp. orange, pomelo and lime citrus fruit borer e. furcellata kumquat and lime citrus mealybug mealybug parasitoid and green lacewings orange, kumquat and lime d. citri earwigs orange, lime and kaffir lime a. citricola mantis pomelo and lime p. citrella trichogramma spp. orange, lime and pomelo p. demoleus trichogramma spp. pomelo and lime p. citrella e. furcellata 4 phrao district, chiang mai orange and pomelo citrus yellow mite green lacewings orange, pomelo and lime thrips green lacewings 5 san sai district, chiang mai orange, pomelo and lime citrus rind borer sycanus sp. (coleoptera: reduvidae) orange, kumquat and lime d. citri sycanus sp. orange, pomelo and lime c. saggittiferekka agriocnemis sp. lime p. citri orange, lime and kaffir lime a. citricola flower flies orange, lime and pomelo p. demoleus e. furcellata 6 mueang chiang mai district, chiang mai orange and pomelo citrus yellow mite green lacewings orange, pomelo and lime thrips green lacewings 7 san kamphaeng district, chiang mai orange and pomelo citrus yellow mite green lacewings orange, pomelo and lime thrips green lacewings 8 chom thong district, chiang mai pomelo oriental fruit fly orange, lime and kaffir lime a. citricola flower flies lime p. citri mantis 9 wang nuea district, lampang, ngao district,lampang orange, pomelo and lime c. saggittiferekka 10 orange and pomelo citrus yellow mite green lacewings orange, pomelo and lime thrips green lacewings 11 mueang pan district, lampang orange and pomelo citrus yellow mite green lacewings orange, pomelo and lime thrips green lacewings 12 chae hom district, lampang orange, pomelo and lime c. saggittiferekka neurothemis sp. orange, lime kaffir lime and pomelo citrus leaf miner e. furcellata orange and lime lamon butterfly eocanthecona furcellata (wolff) orange, kumquat and lime asian citrus psyllid sycanus sp. orange, pomelo and lime c. saggittiferekka earwigs orange, lime, kaffir lime and kumquat yellow citrus aphid flower flies orange, lime kaffir lime and pomelo citrus leaf miner argyrophylax nigrotibialis (baranov) (diptera: tachinidae) 13 mueang lampang district, lampang orange and pomelo citrus yellow mite green lacewings orange, pomelo and lime thrips green lacewings agbioforum, 26(2), 2024 | 5 kawpet et al. role of insect natural ememies integrated pest management of citrus insect pests figure: survey and collection site of citrus insect pests and their natural enemies in 13 districts of two provinces of northern thailand: chiang mai and lampang. figure 4: lepidopterous citrus insect pests collected from chiang mai and lampang province, including egg mass of fall armyworm (a), lemon butterfly larva (b), clothes moth larva (c), stinging nettle caterpillar (d), hairy caterpillar (e), and citrus leaf miner (f). figure 5: leaf sucking citrus insect pests found in chiang mai and lampang province, including yellow citrus aphid (a), citrus scale mealybug (b), citricola scale (c), citrus blackfly (d), thrips infestation fruit (e), and types of thrips (f-h). e agbioforum, 26(2), 2024 | 6 kawpet et al. role of insect natural ememies integrated pest management of citrus insect pests the natural enemies found were categorised into three groups: 1) generalist predators, including neurothemis sp., agriocnemis sp., micraspis discolor (f.), and micraspis vincta (gorham); 2) spiders, such as neoscona jinghongensis, argiope catenulata, tetragnatha maxillosa, thomisus stoliczka, and runcinia albostriata; and 3) parasites, including aphelinus sp., anagyrus lopezi, trichogramma, and argyrophylax nigrotibialis (baranov) (diptera: tachinidae). analysis of the population ecology of citrus insect pests and their associated natural enemies revealed a shannon-weiner index diversity of 1.11 at the study sites. the pest population and certain natural enemies were positively correlated (r = 0.82). the associations were divided into two groups: caterpillars and their natural enemies, which included 1) egg parasitoids (trichogramma), predatory bugs (e. furcellata and s. collaris), and 2) leaf-feeding insect pests and their effective natural enemies, which comprised various species of predatory beetles, flower fly larvae, and aphid flies (figures 7-8). the population dynamics were found to be influenced by timing and season. the population ratio study showed that insect pests and natural enemies were related by density-dependent factors (dd factors) (figure 9), which indicated a high density of effective predators during months 9-11. figure 6: insect natural enemies of citrus insect pests found in citrus orchards in chiang mai and lampang province, such as green lacewing larvae (a), ring-legged earwigs (b), predatory stink bug (c), assassin bug (d), flower fly larva (e), apefly (f), mantis (g), and spider (h). figure 7: predatory beetles found in citrus orchards in chiang mai and lampang provinces as subfamily scymninae (ac), subfamily coccinellinae (d-f). g agbioforum, 26(2), 2024 | 7 kawpet et al. role of insect natural ememies integrated pest management of citrus insect pests figure 8: some parasitoids found in citrus orchards in chiang mai and lampang province as adults of scale insect parasite (a), cocoon of bracon hebetor (b) adult black scale parasite (c), egg parasitoid (d). figure 9: population dynamics of insect pests and natural enemies at 12 months of year. biology and predatory potential of selected natural enemies the results of the population dynamics and correlation studies indicate that certain natural enemies effectively suppress citrus insect pests in orchards. predatory bugs and lacewings were identified as key control agents for caterpillars and leaf-sucking insects, respectively. consequently, the biology of these efficient natural enemies was evaluated to support and enhance ipm programs. biology and feeding efficiency of eocanthecona furcellata the predator stink bug (e. furcellata), from the pentatomidae family, is effective against pests like the citrus worm. it feeds on 5.62 ±1.33 worms/day and is released at 200 predators/rai to control pests. e. furcellata reproduces sexually, with females laying 10-70 eggs per group and producing 300-500 eggs in 30-40 days. both larval and adult stages are predatory. optimal conditions for activation are 25-30°c and 70-80% humidity. its net reproductive rate (ro) is 12.17 for orange worms and 8.34 for silkworms, with a generation time of 29.35 ±1.49 days, making it suitable for mass production to control citrus caterpillar pests. biology and feeding efficiency of sycanus collaris the assassin bug (s. collaris) from the reduviidae family is a predator of flower fly caterpillars and shows cannibalistic behaviour. it feeds on 4.25 ±2.14 worms/day agbioforum, 26(3), 2024 | 8 kawpet et al. role of insect natural ememies integrated pest management of citrus insect pests and has resistance to insecticides like npv, spinosad, and indoxacarb. adults are 10-30 mm long with a slender body and swollen belly, while larvae resemble adults but lack wings. they live singly or in groups on plants and reproduce sexually. females lay 30-60 eggs/group, producing 150-300 eggs over 6-10 months, hatching in 2 weeks. the biological life table showed a net reproductive rate (ro) of 15.20 for orange worms and 7.88 for silkworms, with a generation time of 40.35 ±3.49 days, making it suitable for mass production to control citrus worm pests. biology and feeding efficiency of mallada basalis green lacewings (m. basalis, chrysopidae) larvae are natural predators of citrus pests like aphids, thrips, and citrus rust mites. adult females lay oval, light green eggs, which hatch in an average of 3.5 days, changing to brown. larvae have pointed bodies, long, curved jaws, and a white waxy powder coating. the larval stage lasts 10.5 days before transforming into a chrysalis, covered in white fibers. adults are light green, with red compound eyes, clear wings, and body lengths of 1.55-10 mm for females and 1.20-7.50 mm for males. females produce 12.5 eggs per time, averaging 125.50 eggs during their life. the life cycle lasts 12.5 days for males and 17.5 days for females. the net ro is 17.30 for papaya mealybug bait within 40.35 ±3.49 days, making them suitable for mass production to control citrus aphids. this study examines the distribution of citrus insect pests and natural enemies in chiang mai and lampang provinces, focusing on integrated pest management (ipm). it identifies four main pests: lime butterfly (papilio demoleus), citrus leaf miner (phyllocnistis citrella), yellow citrus aphid (aphis citricola), and thrips (thrips spp.), which are present yearround and pose a constant threat to citrus crops. the study found 26 species of natural enemies, including eocanthecona furcellata, sycanus collaris, and mallada basalis, that are effective for augmentative biological control. e. furcellata and s. collaris consume 5.62 ± 1.33 and 4.25 ± 2.14 caterpillars per day, respectively, making them valuable for biocontrol in citrus production. m. basalis proved effective in controlling leaf-sucking pests like aphids and whiteflies, with e. furcellata being the most effective predator overall. the study's data, including a bar graph on predation rates and species diversity using the shannon-weiner index, revealed a positive correlation (+0.82) between pests and their natural enemies, highlighting the importance of ecological interactions in pest management. seasonal pest and natural enemy data confirmed the complexity of effective control, emphasising the value of native natural enemies. this research promotes ipm by reducing chemical pesticide use and supports a sustainable agricultural ecosystem. the ipm framework developed could inform pest control strategies in similar agricultural landscapes globally, supporting biological pest control for sustainable citrus farming in thailand and beyond. the study underscores the importance of natural enemies in managing citrus insect pest infestations under an ipm plan. it highlights the role of species diversity, population trends, and the feeding capacity of natural enemies in shaping pest control strategies. major pests, including the lime butterfly (papilio demoleus), citrus leaf miner (phyllocnistis citrella), yellow citrus aphid (aphis citricola), and various thrips, cause year-round damage to citrus crops. the study confirms that citrus crops are vulnerable to a variety of pests, which have developed resistance to chemical treatments. to address this, ipm strategies, focusing on pest life cycles and behaviours, are essential. the study identified eight genera and 26 species of natural enemies, including eocanthecona furcellata, sycanus collaris, and mallada basalis, which demonstrated high biocontrol efficacy. these predators, particularly e. furcellata and s. collaris, effectively suppress lepidopterous pests, confirming their significant role in regulating citrus pest populations in agro-ecosystems. the shannon-wiener index revealed a direct relationship between many insect pests and their natural enemies, indicating that an increase in pest populations corresponds with a rise in the populations of their natural enemies. this discovery holds significant implications for pest control practices, emphasising the importance of preserving and promoting existing populations of natural enemies in citrus production regions. measures such as habitat manipulation and reduced pesticide use can enhance these species, thereby helping achieve pest control objectives. sustainable pest management has become increasingly critical due to the negative consequences associated with chemical pesticide use, including biodiversity loss, pest resistance, and ecological imbalance. this study highlights the potential benefits of promoting ipm approaches that prioritise the use of biocontrol agents. citrus farmers can encourage the self-regulation of pests by fostering the natural enemies present in their local environments, thereby reducing reliance on chemicals and promoting ecosystem conservation. furthermore, as noted in the introduction, ipm programs integrate pest management with gap and organic farming systems, which also support the preservation of beneficial insects and stress the importance of diversity in permaculture farming systems. with education and training on natural enemies, local farmers can adopt these practices, staying within the recommended conservation techniques for ipm. this study highlights the advantages of using natural enemies while acknowledging the challenges, such as the timing of their release, their ability to establish in fluctuating environments, and the compatibility of biological control with conventional pest management methods. relying solely on biological control can create imbalances, such as when a natural enemy surpasses its host pest population, potentially leading to new pest issues or the collapse of the natural enemy due to a lack of food. farmers should also be cautious about the ecological disturbances caused by introducing non-native species. therefore, the focus should be on enhancing and conserving local natural enemy populations through practices like planting cover crops, creating refuge habitats, and minimising ecosystem disturbance, enabling natural enemies to thrive and manage pest populations effectively. agbioforum, 26(3), 2024 | 9 kawpet et al. role of insect natural ememies integrated pest management of citrus insect pests suggestions and scope for future research this study provides a foundation for future research into the interactions between citrus pests and their natural predators. it suggests the need to explore favourable environmental conditions that support the population and diversity of beneficial species in citrus orchards. further research incorporating climate factors into risk models could help predict pest and predator behaviour, allowing farmers to take preventive actions. long-term studies are also essential to assess the environmental impact of insect growth and ipm practices. interdisciplinary collaboration among ecologists, agricultural scientists, and entomologists will lead to comprehensive, sustainable solutions for citrus production. the study highlights the importance of natural enemies in pest control and advocates for increased use of ipm. it also calls for improved communication between researchers, farmers, and policymakers, as well as educational efforts and supportive policies to encourage sustainable citrus farming practices. conclusion a survey of citrus insect pests, conducted alongside an investigation into their natural enemies, revealed a total of 11 pest species: caterpillars from four species, aphids from five species, and one species each of fruit flies and mites. additionally, 26 species of insect natural enemies were identified, comprising 15 predator species and 11 parasitoid species. among the natural enemies, the predatory bugs e. furcellata and s. collaris were found to suppress caterpillars, while the lacewing larva, m. basalis, was effective in controlling numerous leaf-sucking insect pests. these species are considered the most promising natural enemies for augmentative biological control in pest management programs. furthermore, the study highlighted that the diversity and stability of population dynamics were higher in organic citrus orchards compared to those treated with chemicals. this underscores the importance of biodiversity, which plays a central role in the success of various ipm 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this revolution is termed a digital transformation (kraus et al., 2021; van veldhoven & vanthienen, 2022). in the case of underdeveloped countries, the use of ecommerce, digital marketing, and even the broad spectrum of becoming digital may open up avenues to form new businesses, hire entrepreneurs, and obtain previously hardto-observe markets; the shift above is crucial for iraq is attempting to rebuild its economy while managing the sociopolitical factors it has to face (allawi & alyouzbaky, 2024; jasim, hameed, & jasim, 2021). one of the most effective methods of repairing the economic structures of iraq, rejuvenating the stale factors of competition, and ameliorating the situation is through seeking help from digital transformation (yousif, morrar, & el-joumayle, 2023). empowering iraqi companies to transact on platforms beyond homemade stores gives them more options and potential profit from e-commerce. one key factor enabling companies to deepen customer connections, build brands, and expand markets is digital marketing—it allows companies to engage with customers inexpensively, offers visibility benefits, and enhances customer loyalty (mukhtar, mohan, & chandra, 2023; zulfikar, 2023). as well as these factors, businesses are further enabled by digital literacy and better infrastructure. these are important milestones in achieving sustainable development (al-jabori, 2023). so, this research examines how digitalization drives a firm's growth while establishing new employment opportunities in iraq, which supports sdg 8 (decent work and economic growth) and sdg 9 (industry innovation and infrastructure). the research examines how e-commerce combined with digital marketing and digitalization affects the iraqi economy as a basis for developing future policies. literature review e-commerce in iraq e-commerce has started to gain some significance due to a noticeable growth of internet users (from 0.2% in 2000 to 12.9% in 2019) and increased usage of mobile phones in iraq (hamakhan, 2021). however, the sector still faces some obstacles to its development. there is no existing frame or regulation for e-commerce activities at a governmental level. furthermore, the available infrastructure (logistic and financial) is insufficient to meet the accepted standard for developing this sector (ahi, sinkovics, & sinkovics, 2023). in 2020, due to the global pandemic of covid-19, the number of internet users in the middle east rose by 11 million to reach over 170 million on a regional level, while iraq accounted for 100 thousand additional new internet users. under this latest development, local and regional business start-ups began to pay increasing attention to e-commerce activities to reach many customers (elameer, 2021). local companies in the iraqi e-commerce market include miswaak (launched in 2019). miswaak is a https://orcid.org/0009-0004-8693-8872 mailto:shakirahmed21@stud.ase.ro https://orcid.org/0000-0002-3106-6550 mailto:kadhim.ghaffar.cku@atu.edu.iq https://orcid.org/0000-0001-9015-5329 mailto:amjed_hameed@uomus.edu.iq https://orcid.org/0000-0001-9015-5329 mailto:dr.hasanshker@uomus.edu.iq https://orcid.org/0009-0004-8693-8872 mailto:haiderj.kadum@uokufa.edu.iq agbioforum, 26(3), 2024 | 75 shakir et al. — the impact of e-commerce, digital marketing, and digitalization on firm’s growth in iraq local iraqi e-commerce company that provides a b2c platform to customers. it operates over a vast platform where people can buy groceries online. meanwhile, the market is dominated by daraz, the largest ecommerce shop in south asia, and amazon, an american multinational technology company focusing on ecommerce, cloud computing, digital streaming, and artificial intelligence. both daraz and amazon provide services to iraqi customers, and both players dominate the business, accounting for 66% of the share in the iraqi market. on the other hand, the market is also filled with third parties such as tnt express, uae xpress, and ishipx to facilitate delivery outside iraq (iqbal et al., 2024). however, this service is not cheap and, so far, affects only a small part of the iraqi market. online sales of goods or services are on the rise in iraq. there is an increasing preference for digital transactions in place of cash-on-delivery when consumers order goods or services through digital platforms or websites. it seems unlikely times are returning to prepandemic days regarding e-commerce trends (alwan et al., 2023). the retail and services sectors have noticeable potential to enter the e-commerce market. the immediacy of posting and sharing on social media and the possibility of linking social media posts to commercial websites through advertising links are significant in promoting e-commerce. this reflects its critical importance in iraq’s aim of economic diversification and reducing dependency on the oil sector (antwi-boateng & al jaberi, 2022; firas abdullrada & ali waheeb, 2024). the role of digitalization in firm’s growth the digitalization of the world as an inevitable result of ict development went through its historical stages so that ecommerce, which can be considered as its final product, has expanded since the mid-nineties of the last century (durand & baud, 2024; ertemel & civelek, 2022). yet, despite being on the same bandwagon of globalization and digitalization, iraq suffered delays in implementing standard practices, policies, and models in the recent past. what iraq is to do is to urgently adopt and timely modify the western models or other successful examples implemented in the neighboring countries, concentrating on building an adequate infrastructure with various supportive global services (alsaadi, cherepovitsyn, & semenova, 2022). besides, iraq is to develop a new strategy for e-commerce and digital marketing practices, which can open more opportunities for engaging in global trade, respectively (altememy et al., 2023). digital technologies enable the creation of a significant, sustainable, and secure e-commerce and mobile commerce environment, which could link regions and remote parts of the vast country or even regions surrounding the globe (elameer, 2021). this study explores how digitalization, e-commerce, digital marketing, and other age-specific business practices could support sustainable social and economic development and how global trade may be facilitated. e-commerce and other digital marketing practices enable high productivity, creativity, competitiveness, and innovation at national and international levels (tolstoy, nordman, & vu, 2022). the ability of cross-border ict applications could expand; participation in global markets could foster the transformation of iraq’s economy and promote the integration of all relevant stakeholders into the international market. further stimulation of the domestic population of young women, people with disabilities, and older adults, whose access could be enhanced by digitalization, is envisaged (firas abdullrada & ali waheeb, 2024; khrais, zorgui, & aboalsamh, 2023). the online platform for effective global communication is designed to ensure sufficient content, social and economic growth, and facilitate social and economic development and competitive advantage in the wider country areas. unique eservices are to foster life-long education and training, the ability to adapt to widespread profound changes occurring in society and work environments, and relevant to developing more efficient public services – e-health, epolice, etc – are designed to respect the cultural traditions of the country that is to ensure that e-commerce is sustainable and acceptable to the broadest number of potential beneficiaries, particularly those in rural and remote areas (carrera-rivera, larrinaga, & lasa, 2022; izquierdo-yusta et al., 2021; marienfeldt, 2021). the strategies and policies designed to encourage regional, national, and international investment and cooperation in enhancing global trade are supportive and complementary. all of those digital actions support governance development, software applications respect copyright and privacy legislation, transparency, and accountability, and reduce informal aspects, and finally, the improved level of digital skills of the workforce and older persons, and thus employability in a world of rapid change of the early xxi century (akour & alenezi, 2022; bennett & mcwhorter, 2021). such a digital strategy is to unite, coordinate, and boost all activities of the relevant stakeholders to respond to the common goal of establishing as rapidly as possible an extensive digital global environment that would ensure wider and more efficient participation in the worldwide market to foster socioeconomic development and poverty reduction, and eventually provide the good standards of living to all inhabitants of all regions of iraq (begum & musa, 2023; totonchi & ahlan, 2023). many practical cases and theoretical approaches to digital and age-specific businesses to explore the best possible ways to connect with the wider world markets in the forthcoming global dimension of the digital era to avoid delays, difficulties, and wrong moves in attempting to build up a virtual business island detached and unlinked to the rest of the globalized world-market network of the new millennium, presented in the study. hypothesis development based on previous studies, this research puts forward the following hypotheses: hypothesis 1: e-commerce positively affects the firm’s growth in iraq. justification: e-commerce opens new opportunities for businesses, lowers transaction costs, and increases market access, which in turn encourages trade and supports economic diversification. prior studies indicate e-commerce implementation drives up market variety and trade activity growth in developing economies. e-commerce development in iraq can activate local industries while generating agbioforum, 26(3), 2024 | 76 shakir et al. — the impact of e-commerce, digital marketing, and digitalization on firm’s growth in iraq employment opportunities and diminishing oil export dependence. yousif et al. (2023) emphasize that the growth of e-commerce in iraq would create multiple business opportunities that would strongly support economic growth and market diversification. hypothesis 2: digital marketing strategies positively affect the firm's growth in iraq. justification: by allowing businesses to reach wider audiences at lower costs, digital marketing enhances competition, innovation, and market expansion. a prior study shows that digital marketing enables businesses to achieve better customer interaction alongside sales increases and improved brand dedication, leading to economic development. the rising number of people accessing the internet in iraq makes digital marketing ideal for businesses looking to move past their domestic market. digital marketing proved effective for increasing business growth and consumer contacts in emerging economies while directly applicable to iraq's present circumstances, according to mukhtar et al. (2023). hypothesis 3: digitalization has a positive effect on iraq's economic growth through gains in productivity, cost reductions, and the creation of new industries. rationale: digitalization increases efficiency in business and the public sector, cuts operational costs, and fosters innovation, thus driving the firm's growth. prior literature states that digitalization creates new industry sectors, including it services and e-commerce platforms. implementing digital transformation within iraq will fuel the development of new markets like tech-driven services and digital platforms. the author al-jabori (2023) describes how digital transformation boosts productivity throughout private and public sectors to deliver important cost reductions and create innovative solutions that advance economic development. methodology it mainly uses quantitative methods to investigate ecommerce, digital marketing, and digitalization as factors influencing the firm's growth and economic development in iraq. quantitative methodologies provide a hard approach to exploring this relationship. the study only targets iraqi firms currently using or intending to use digital tools in their operations. the data is collected based on a survey instrument, and the analysis uses regression analysis to assess the impact of these digital variables on the firm's growth outcomes. this study is quantitative and cross-sectional. the data is collected through a survey that measures the level of ecommerce, digital marketing, and digitalization of iraqi firms. the cross-sectional study will be appropriate for this research as it will take a snapshot at one point. structured questionnaires with closed-ended questions to ensure consistency in data gathering for comparability and reliability of the data gathered. this standardized format enables group analysis of business responses through direct comparisons, making responses easy to measure for evaluation purposes. both online and offline surveys are utilized to reach a wide variety of businesses. online surveys target businesses with greater access to digital resources, while offline surveys ensure the inclusion of businesses with limited internet access. the sample comprises businesses in different sectors in iraq, including retail, finance, telecommunications, and manufacturing; each portrays varying levels of digital adoption. this diversity gives insight into how digital tools impact the trajectory of firms' activities in iraq's major sectors. a total of approximately 300 businesses were selected to adequately represent iraq's digital landscape. the selected sample size meets the requirements for strong statistical analysis and enables the researchers to verify that the study findings can be applied to other cases. random sampling is selected from business directories and industry databases to achieve diversity in business types, sizes, and sectors. this testing method allows researchers to achieve diversity in their selection process and minimize potential bias factors to generate dependable and representative outcomes. business owners, marketing managers, it managers, and department heads engaged in e-commerce or digital marketing can provide insights into digital strategies and their perceived effects on growth. this research aims at a variety of participants in iraq's digital economy: consumers: those who will use e-commerce or digital services. this covers the demand side. consumers provide essential insights for understanding how people behave when making choices, their preferences, and the obstacles they face in digital adoption. firms: small and medium enterprises, large firms, and start-ups in digital marketing or e-commerce. the mixed firm sizes in the study enable researchers to understand the effects of digitalization on businesses throughout the iraqi system. government officials: officials of agencies that will advocate for digital transformation, such as the ministry of communications and the central bank. the survey participants offer vital information about government policies, support structures, and the role of public institutions in developing the digital economy. service providers: these are firms like internet providers, digital payment systems, and logistics companies that facilitate digital transactions (unctad, 2020; world bank, 2021). this measure captures the economic impact of digital transformation on different demographic and economic groups. a mix of data collection methods increases the accuracy and depth of insights on digital adoption and its economic impacts: by uniting both quantitative and qualitative data, the study improves the depth and accuracy of insights into the role of digital transformation in iraq’s economy. surveys and questionnaires: these are sent to business managers and service providers to collect quantitative data on digital adoption, business practices, and the perceived economic impact of digital tools. survey formats enable consistent data collection, which permits statistical testing of variables, including the relationship between digital adoption and business growth. agbioforum, 26(3), 2024 | 77 shakir et al. — the impact of e-commerce, digital marketing, and digitalization on firm’s growth in iraq interviews: semi-structured interviews with key stakeholders, including government officials and business leaders, provide qualitative insights into iraq's digital economy. these interviews examine the role of government policies, digital infrastructure, and industry leaders' perspectives on the challenges and prospects of digital transformation in iraq. small group discussions about digital services provide an indepth exploration of users' experiences, motivations, and challenges, further adding qualitative depth to the findings. results and discussion it is very important to know the demographic profile to understand digital technologies' impact on growth in iraq. the sample should be representative of iraq's population, considering major demographic characteristics such as age, gender, education level, occupation, and geographic location. this diversity ensures a holistic view of how different segments of society adopt digital technologies and how the impact varies across these segments. table 1 below shows the distribution of each demographic in the study population. surveys are administered to businesses to achieve thorough data collection, including those with limited internet access. the questionnaire covers e-commerce adoption, digital marketing strategies, and digitalization initiatives, among others, and points to key business performance indicators such as revenue growth, market expansion, and productivity improvements. respondents answered on a likert scale of 1–5, from strongly disagree to strongly agree, to assess digital technologies' perceived effect on firm growth. such a methodological approach captures detailed insight into how firms view and experience digital transformation in the economic landscape in iraq. table 2 below provides data collection from the respondents. table 1: demographic profile. demographic variable category percentage gender male 57% female 43% age group 18-25 21% 26-35 38% 36-45 27% 46 and above 14% education level high school 31% undergraduate degree 39% postgraduate degree 16% no formal education 14% occupation self-employed/entrepreneur 20% private sector employee 34% public sector employfee 21% student 14% unemployed 11% geographic distribution baghdad 39% basra 15% erbil 14% other urban centers (e.g., mosul) 17% rural areas 15% table 2: data collection overview. variable source collection method scale respondents e-commerce adoption survey questionnaire survey likert scale (1-5) business owners/managers digital marketing use survey questionnaire survey likert scale (1-5) marketing managers digitalization level survey questionnaire survey likert scale (1-5) it managers firm’s growth business performance reports annual revenue, market share percent change (annual) finance departments descriptive statistics and normality tests must be performed before proceeding with inferential statistical data analyses. such preliminary evaluations provide a very fruitful insight into the data's central tendency, variability, and distribution. the paper assesses the impact of e-commerce, digital marketing, and digitalization on economic growth in iraq. this study uses a sample size of 300 observations. the major variables included are: e-commerce adoption rate: percentage of businesses and consumers engaging in online transactions. digital marketing usage: percentage of businesses using digital marketing approaches. internet penetration: percentage of the population with access to the internet. digital payment usage: percentage of all transactions carried out through digital payment means. descriptive statistics descriptive statistics summarize the data set using measures of central tendency, such as mean and median, dispersion, standard deviation, and range, minimum and maximum values. these metrics form the foundation for understanding a dataset's general trends and patterns, setting the stage for further analysis, as shown in table 3. agbioforum, 26(3), 2024 | 78 shakir et al. — the impact of e-commerce, digital marketing, and digitalization on firm’s growth in iraq table 3: descriptive statistics of key variables (n=300). variable mean median standard deviation minimum maximum e-commerce adoption rate (%) 33.15 32.00 9.42 11.00 53.00 digital marketing usage (%) 41.50 43.00 12.25 15.00 65.00 internet penetration (%) 57.20 57.50 12.05 29.00 81.00 digital payment usage (%) 44.75 24.00 6.89 12.00 41.00 firm’s growth (%) 4.25 4.20 0.89 1.50 5.20 interpretation e-commerce adoption rate: the average e-commerce adoption rate from the sample presented is around 33.15 percent, with values between 10 percent and 52 percent. within this range, different businesses and consumers show very large variations in adopting online transactions. the mean level of digital marketing usage among firms is 41.50%, and the standard deviation is 12.25%. this moderate variability indicates that a fair share of businesses is involved in digital marketing, yet there is tremendous potential for its spread and enhancement. a. internet penetration: the average internet penetration rate is 57.20%, ranging from 29% to 81%. this wide range shows the differing internet access levels among the population, which might also influence the adoption speed of digital technologies. b. digital payment usage: on average, 44.75% of all transactions are digital. that is a positive trend in adopting digital transactions, although there is still a lot of headroom for growth. firm’s growth: the average value for the firm’s growth rate in iraq is 4.25%. its standard deviation is 0.88%. this relatively low standard deviation tells us that the iraqi economy has entered a phase characterized by steady growth. data normality test to check for the data's normality, we used the shapirowilk test along with measures of skewness and kurtosis. the shapiro-wilk test allows us to determine if each variable's distribution is close to normal. a p-value greater than 0.05 indicates that the data follows a normal distribution. hence, the data in table 4 can support our further statistical analysis assumptions. table 4: data normality test results. variable shapiro-wilk statistic p-value skewness kurtosis normality (p > 0.05) e-commerce adoption rate 0.982 0.065 0.08 -0.15 yes digital marketing usage 0.976 0.080 0.12 0.35 yes internet penetration 0.973 0.092 0.24 0.12 yes digital payment usage 0.962 0.036 0.49 0.76 yes firm’s growth 0.985 0.110 -0.15 -0.25 yes interpretation shapiro-wilk test results indicate that e-commerce adoption rate, digital marketing usage, internet penetration, and firm growth are normally distributed with p-values> 0.05. however, for digital payment usage, the p-value is 0.036. thus, digital payment usage is fairly different from a normal distribution because the values of skewness (0.49) and kurtosis (0.76) possess a mild positive kurtosis and heavier tail compared to a normal distribution. visualization of data normality quantile-quantile (q-q) plots q-q plots are commonly used to evaluate the normality of data. in these plots, the quantiles of the data that have been observed are compared to the quantiles of a normal distribution that has theoretically been predicted. when the data points are closely aligned around a 45degree reference line, it indicates that the data are likely normally distributed. the e-commerce adoption rate has most of its data points approximately following the reference line, meaning the assumption for normality would hold. digital payment usage shows deviation from the line in some instances, thus presenting a slight departure from normality. implication of normality test results in other words, parametric tests on pearson's correlation and regression analysis can be further explored because there is normality for such variables as e-commerce, digital marketing, and firm growth. since digital payment usage is not normally distributed, this may be appropriate with non-parametric tests (like spearman rank correlation), or log transformation might enable further analysis to order. measurement model assessment the assessment of the measurement model is a vital step in establishing the validity and reliability of the constructs in an sem framework. this assessment will ensure that the latent variables of e-commerce adoption, digital marketing usage, and digitalization are adequately expressed by their respective observed indicators. key facets of this assessment include construct reliability, convergent validity, and discriminant validity. reliability and convergent validity reliability shows the constructs' internal consistency, which can be gauged using cronbach's alpha and cr. the reliability coefficient is very high, indicating that more items are coherent while measuring the particular construct. convergent validity tells whether the indicators of a specific construct are well-correlated enough to confirm they are measuring the same underlying concept. this is typically measured using the average variance extracted (ave), which should be above 0.5 to reflect agbioforum, 26(3), 2024 | 79 shakir et al. — the impact of e-commerce, digital marketing, and digitalization on firm’s growth in iraq strong convergent validity. if these measurement criteria are met, one can confirm that their constructs are wellrepresented, strengthening the study's findings as the data in table 5. table 5: reliability and convergent validity results. construct cronbach’s alpha composite reliability (cr) average variance extracted (ave) e-commerce adoption rate 0.82 0.87 0.62 digital marketing usage 0.79 0.85 0.59 digitalization 0.81 0.88 0.64 firm’s growth 0.76 0.82 0.58 consequently, cronbach's alpha values greater than 0.70 indicate that all the constructs are internally consistent, ensuring that the items measuring each construct are reliable. additionally, values of cr greater than 0.80 confirm the reliability of the constructs, indicating that the indicators are in a position to reflect the concepts consistently. the values of ave above 0.50 mean that the respective indicators for each construct exhibit good convergent validity in that they essentially measure the same underlying construct on average. discriminant validity it also confirms that discriminant validity means constructs intended to be different remain different. researchers often employ two methods in evaluating discriminant validity: the fornell-larcker criterion and the heterotrait-monotrait ratio abbreviated as htmt. in light of the fornell-larcker criterion, the square root of ave for each construct should be higher than its correlations with other constructs. htmt values below 0.85 mean that discriminant validity is established, proving that the constructs differ from the data in table 6. table 6: discriminant validity (fornell-larcker criterion). construct e-commerce digital marketing digitalization firm growth e-commerce 0.78 digital marketing 0.45 0.76 digitalization 0.51 0.49 0.81 firm’s growth 0.39 0.35 0.45 0.77 the diagonal values are the square root of the average variance extracted (ave) for each construct and are higher than the correlations of those constructs with other constructs. that means discriminant validity exists according to the fornell-larcker criterion, as shown in table 7. table 7: heterotrait-monotrait ratio (htmt). construct e-commerce digital marketing digitalization firm growth e-commerce 0.55 0.63 0.49 digital marketing 0.57 0.43 digitalization 0.51 firm’s growth all htmt values are below 0.85, hence discriminant validity. model fit indices the general adequacy of the measurement model is examined through several model fit indices, namely, the chi-square/df ratio, the comparative fit index (cfi), the root mean square error of approximation (rmsea), and the standardized root mean square residual (srmr), as shown in table 8. table 8: model fit indices. fit index recommended value observed value chi-square/df ratio < 3.0 2.46 comparative fit index (cfi) > 0.90 0.94 rmsea < 0.08 0.06 srmr < 0.08 0.07 the chi-square/df ratio, below the threshold of 3 with a 2.46 value, gives reason for an appropriate model fit. the cfi is 0.94, above the threshold of 0.90 recommended to indicate a good fit for the model. in addition, the values for rmsea and srmr are below 0.08, which again supports the fact that the model fits the data well. discussion of results reliability: all the constructs reflect internal consistency, as cronbach's alpha and cr values exceed the threshold levels, approving that the measurement apparatuses are reliable and consistent across different items. convergent validity: ave for all the constructs is greater than 0.50, thus meeting the requirements for convergent validity. this specifies that the constructs share sufficient variance with their indicators, supporting that they are well-defined and precisely measured. discriminant validity: the fornell-larcker criterion and htmt show that the constructs differ. this means that the constructs do not overlap disproportionately, ensuring that each factor contributes exclusive information to the model. model fit: the fit indices of the model denote that the measurement model adequately represents the data, thus ensuring that the relationships between e-commerce, digital agbioforum, 26(3), 2024 | 80 shakir et al. — the impact of e-commerce, digital marketing, and digitalization on firm’s growth in iraq marketing, digitalization, and the firm's growth are well represented. fg = bo+b1(ec) +b2(dm) +b3 (d) while fg= firm growth, e-commerce= ec digital marketing= dm digitalization= dg table 9: regression results, dependent variable if fg. variables coefficients t-statistics constant 3.20 2,80* ec .35 3.22* dm .21 2.45* dg .45 3.45* • denotes significant at one percent fg= 3.20+ .35(ec)+ .21(dm) +.45(dg) the outcome of the regression results provides valuable insights into the relationship between firm growth (fg) and key digital factors: e-commerce (ec), digital marketing (dm), and digitalization (dg). the positive coefficients of all three independent variables suggest that each significantly influences firm growth. the constant term (3.20) indicates that, even in the absence of digital strategies, firms exhibit a baseline level of growth. however, the coefficients of ec (0.35), dm (0.21), and dg (0.45) highlight the incremental impact these factors have on firm growth. specifically, a one-unit increase in e-commerce is associated with a 0.35-unit increase in firm growth, suggesting that businesses that expand their online sales channels experience substantial benefits. digital marketing, with a coefficient of 0.21, has a relatively smaller but still significant effect, reinforcing its importance in customer engagement and market expansion. among the three factors, digitalization has the strongest impact (0.45), indicating that firms that integrate advanced digital tools and automation tend to achieve the highest growth rates. since all coefficients are statistically significant at the 1% level, these findings suggest a robust relationship between digital transformation and firm performance. the implications for business leaders and policymakers are clear: investing in digital infrastructure, enhancing online marketing strategies, and embracing e-commerce platforms are critical for sustained growth. firms that fail to adopt digital technologies risk falling behind in an increasingly digital economy. these results emphasize the need for organizations to prioritize digital transformation as a core strategy to remain competitive and drive longterm success. discussion it surveys the impact of e-commerce, digital marketing, and digitalization on the economic growth of iraq. the analysis showed that these factors contribute to the positive development of the iraqi economy through increasing access to the market, encouraging innovation, and improving operational efficiencies. e-commerce adoption will foster more interaction between consumers and businesses, while digital marketing exposes brands to wider audiences, strengthening their competitive positioning. also, digitalization, including improved digital infrastructure and internet access, is a vital support system for these innovations. these findings further agree with prior studies showing that technology-related factors such as e-commerce, digitization of marketing, and digital infrastructure greatly affect economic indicators, especially within developing countries (salim, 2022). normality and discriminant validity tests indicate that the constructs effectively measure the latent variables, confirming the model. the contribution of digital tools and platforms in iraq's firm growth trajectory has thus been proved, underpinning the transformative potential of digitalization in emerging markets. theoretical implications the present study contributes to the theoretical discourse on how the factors related to digitalization influence the growth of businesses in developing economies. using an extended technology-organization-environment framework, our findings support the view of digital infrastructure, or the "environment" aspect, as a precursor to technology adoption and economic progress. this research also supports the resource-based theory because e-commerce and digital marketing constitute resources that promote competitive advantage and market expansion. in iraq, digital adoption is still improving. it contributes to the literature on digitalization and its economic impacts, therefore, by illustrating the socio-economic transformation within emerging economies. managerial implications the results give actionable insights to business leaders and policymakers: digital infrastructure investment: management should develop the digital infrastructure since internet access and digital platforms are crucial to effective digital marketing and e-commerce implementation. digital payment systems: increasing digital payment options will increase customers' comfort with online transactions and, hence, e-commerce adoption. this could encompass partnerships with digital payment benefactors, improving security features, and encouraging digital wallets to certify that customers can transact impeccably and securely, further driving e-commerce adoption. emphasize digital literacy and training: the main outcome of this study highlights the role of digital skills when businesses aim to succeed in digital markets. iraqi business leaders need to provide employees with digital learning opportunities that will teach them e-commerce methods and digital marketing skills for modern business operations. enhanced digital capabilities of workers enable companies to boost productivity while enhancing operational efficiency and market competitiveness in digital marketplaces. governmental policy support: the success of a flourishing digital economy depends heavily on government interventions through appropriate policies. governments should establish positive policies and financial incentives to aid businesses when implementing digital technologies. initiatives that emphasize digital privacy and security shields within online commercial dealings improve consumer trust in e-commerce platforms. the government should implement guidelines handling data protection and cyber risks to establish a safe digital transaction environment. agbioforum, 26(3), 2024 | 81 shakir et al. — the impact of e-commerce, digital marketing, and digitalization on firm’s growth in iraq easing remote work and digital collaboration: businesses need to organize remote work technology alongside digital apparatuses, allowing flexible operations and boosting total productivity levels. the growing speed of digital transformation forces businesses to choose adaptable working structures and innovative tools because they ensure their competitive edge during worldwide events, including covid-19. companies must establish cloud-based tools for remote communication, project management, and document-sharing capabilities. employees who complete remote collaboration best practices training can implement these technologies effectively, thus boosting organizational efficiency and collaboration. the joint effort of business leaders and policymakers, through targeted strategic initiatives, will develop conditions for digital adoption, which will boost iraqi business competitiveness and drive lasting economic development. limitations and future directions limitations the study has been geographically and sectorally bounded, so the findings may not be generalized to other regions. also, the effects of digitalization may vary across different sectors in iraq, which this research did not particularly explore. limitation of data: the dependence on survey data from the study reduces its ability to show longitudinally. a longitudinal approach in this regard could give a more appropriate view of how digitalization influences economic growth over time. limitation in measurement: although the model proved reliable and valid, the selected indicators may not fully reflect all aspects of digitalization, including cybersecurity and advanced analytics. future directions longitudinal studies: further research might examine how digitalization affects economic growth in iraq over a period of years and take a more dynamic view of technological adoption and economic changes. cross-sectoral analysis: an analysis of the impact of digitalization across sectors may highlight specific opportunities and challenges facing different industries, thus yielding customized strategies for each sector. inclusion of more variables: this might be extended to cybersecurity, the regulatory environment, and training programs on digital skills; these might also provide insight into the conditioning factors of e-commerce and the economic implications of digitalization. comparative studies: comparing research studies on digitalization in iraq with other developing economies will place the study in a wide perspective by describing how the emerging markets face various challenges uniquely and in common. conclusion this study has shown the significant influence of ecommerce, digital marketing, and digitalization on the economic growth of iraq. the research underpins the linkages of digitalization with economic indicators, depicting that these digital tools are relatively important in business growth and promoting economic development in developing countries. in all, improving the country's digital infrastructure, promoting electronic commerce, and increasing digital marketing can spur innovations, competitiveness, and reach new markets, contributing to iraq's 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socio-economic development in iraq kadhim ghaffar kadhim college of administrative sciences, business administration department, al-mustaqbal university, babylon 51001, iraq. orcid id: https://orcid.org/0000-0002-3106-6550, email: kadhim.ghaffar@uomus.edu.iq amjed hameed majeed* college of administrative sciences, business administration department, al-mustaqbal university, babylon 51001, iraq. orcid id: https://orcid.org/0000-0001-9015-5329, email: amjed_hameed@uomus.edu.iq hasan majdi college of engineering and technologies, al-mustaqbal university, babylon 51001, iraq. orcid id: https://orcid.org/0000-0001-6752-4835, email: dr.hasanshker@uomus.edu.iq ahmed hasan shakir universitare de doctorat din ase bucureşti, romania. orcid id: https://orcid.org/0009-0004-8892-3826, email: shakirahmed21@stud.ase.ro the present study investigates the role of corporate social responsibility (csr) in mitigating poverty in iraq by examining business-driven csr initiatives aimed at fostering economic growth, sustainable development, and improving social conditions. in the context of post-conflict iraq, where poverty is significantly influenced by global challenges and social inequalities, the research undertakes an in-depth analysis of csr efforts across various industries. it explores how corporations contribute to poverty alleviation through initiatives in education, community collaboration, and economic empowerment programmes. adopting a quantitative methodology, the study utilises a sample of 357 respondents from the business, government, and other relevant sectors to assess the impact of csr on socio-economic indicators. the analysis was conducted using smart-pls to examine the relationships among variables. the findings reveal that csr activities focused on health, education, and infrastructure significantly reduce poverty levels in the country. furthermore, the reduction in poverty is shown to have a positive effect on enhancing economic growth. keywords: socio-economic development, poverty alleviation, corporate social responsibility. introduction csr has emerged as a vital mechanism for addressing poverty in developing nations, including iraq a country abundant in natural resources yet burdened by widespread poverty and significant social inequality. as highlighted by halkos & nomikos (2021), csr is a group of activities past legal responsibilities that seek to solve social, environmental, and economic issues and also add value to corporations and the greater society at large. the issue of exactly how csr shaped iraq is especially timely considering the country's long history of war, insecurity, and transforming economic growth. all these conditions call for the adoption of good strategies for sustainable development and poverty reduction (wirba, 2024). where state resources can't meet crucial needs of economically disadvantaged populations, csr initiatives might deal with critical needs. programmes involving health, education, and employment have proven to relieve poverty (sawant & naik, 2022). industries like oil & gas possess the unique power to produce change. examples like rubix & wites and ben & jerry demonstrate how corporate investments in infrastructure and vocational training, along with other socially productive initiatives, can help alleviate poverty. these efforts promote self-sufficiency within communities by providing individuals abilities for economic independence. evidence indicates that csr initiatives improve developing economies by reducing poverty through enhanced access to education, wellbeing and financial opportunities (carroll, 2021). in iraq, csr programmes could raise living standards for economically disadvantaged populations while meeting iraqi national priorities in sustainable development and building social capital between companies and communities. all these efforts are fundamental for sustainable poverty alleviation and regional growth (khuong, truong an, & thanh hang, 2021). this particular research investigates how csr addresses poverty in iraq through education, employment, and healthcare. it also reviews how corporate actions can complement governmental poverty reduction policies, especially through social partnerships that develop social cohesion. csr is a major component of modern business and is a key driver of company image and socio-economic development. in the financial crises environment of social inequities and widespread poverty, csr also became a major driver of sustainable development. in the financial crises environment of social inequities and widespread poverty, the companies are directing other than profit-making to the wellbeing of society. csr includes the domains of social development like healthcare, education, and infrastructure that directly support the eradication of poverty (medinamuñoz & medina-muñoz, 2020). the decrease in the levels of poverty that is achieved by means of these efforts is of greater implications to economic development due to increased workers' productivity, company growth, and financial stability of the country being additional gains. therefore, csr is a catalyst to the socioeconomic development of iraq and is a must to sustainable development. the socio-economic landscape of iraq shaped by war, political instability, and economic woes creates a unique case of csr. millions of people do not have access to quality education, healthcare, and infrastructure with the issue of poverty being among the highest in the middle east (katoue et al., 2022). consequently, csr in iraq is now more than an ethical obligation but a strategic need for lasting economic growth. businesses in oil & gas, communications, and construction have invested in csr initiatives to improve living conditions, education, and infrastructure (dequeronavarro et al., 2020). this study systematically explores the connection between csr, economic development, and poverty alleviation in iraq. it initially examines csr engagement in 3 essential domains: https://orcid.org/0000-0002-3106-6550 mailto:kadhim.ghaffar@uomus.edu.iq https://orcid.org/0000-0001-9015-5329 mailto:amjed_hameed@uomus.edu.iq https://orcid.org/0000-0001-6752-4835 mailto:dr.hasanshker@uomus.edu.iq https://orcid.org/0009-0004-8892-3826 mailto:shakirahmed21@stud.ase.ro agbioforum, 26(2), 2024 | 12 kadhim et al — leveraging corporate social responsibility for poverty alleviation: exploring csr role… education, infrastructure, & health. how corporate actions in these areas alleviate poverty. the research then reviews broader economic results of poverty alleviation and recommends that businesses contribute to national economic growth through social duty. its importance comes from the outlining of the practical ramifications of csr in a conflictaffected economy. while there's much research on csr worldwide, little attention is given to its immediate impacts on economic development and poverty alleviation in iraq. current csr research in developing nations primarily emphasizes ethics and regulations, while it tends to overlook the measurable contributions that corporate social responsibility makes to economic growth. this research fills this gap by consistently looking at corporate investment in social development and showcasing its role in economic progress and stability. what csr means in iraq is crucial information for businesses operating there and for policymakers looking to develop an environment for corporate-led sustainable development. this analysis describes precisely how csr could be a vehicle for long-term economic and social advancement of iraqi society. the effect of different csr projects in the education, infrastructure, and health sectors, in addition to their physical effects, on lowering poverty levels in iraq is analysed. additionally, it explores precisely how economic development influences poverty and offers useful lessons for policymakers and firms regarding how to leverage csr to see long-lasting prosperity. an essential research gap in the literature may be the absence of empirical proof that csr-driven poverty reduction initiatives are connected to changes in financial stability in iraq. although numerous research has dealt with csr's effects in advanced countries, reports on its effectiveness in postwar economies—specifically iraq—are scant. furthermore, research has mainly framed csr as an ethical obligation instead of seeing its potential as a strategic financial instrument for development. to remedy these major shortcomings in existing expertise, this article systematically explores how csr initiatives focusing on education, health, and infrastructure could be effective and immediate paths to alleviate poverty and accelerate broader economic development in iraq. literature review poverty remains an issue for developing countries and can trap these countries in socio-economic problems. in this situation, csr has become a suitable tool for dealing with these problems. csr efforts have shown that they are able to fight poverty at the source, including bad education, inadequate medical care, and inadequate infrastructure (huang et al., 2022). unlike developed nations, where csr is usually centred on environmental management or consumer relations, csr in developing countries usually entails offering services that governments cannot provide because of limited resources. iraq illustrates the scenario, having massive natural resources but prone to economic shocks. major csr programs are very prominent in the oil and telecommunications sectors, where big companies exert considerable influence to change. if tailored to the specific regional communities 'needs, such initiatives can promote social welfare, encourage economic integration, and contribute to sustainable poverty alleviation (he et al., 2023). concentrating on practical objectives like creation of jobs, support for small and medium businesses, and infrastructure development, csr projects could reshape iraq's economic landscape over time (chang, he, & wang, 2021). education and training are strategies for sustainable poverty eradication. in a country like iraq where youth unemployment is high and skills supply/demand mismatch is prevalent, welldesigned csr programs supporting vocational training and education could have significant impacts (jing, wang, & hu, 2023). these initiatives provide people abilities to compete in the labour market and create economic independence instead of aid dependence. worldwide examples demonstrate that similar csr programs have raised income levels and reduced dependency on social security through enhanced literacy rates and employment skills (huang, li, & yu, 2024). in iraq, wellplanned and targeted interventions such as scholarships, increased school funding, and comprehensive job training programs can significantly lift many people from the persistent cycle of poverty that affects their lives. education remains a significant tool in reducing poverty. education and vocational training are crucial needs of a socio-economically poor group, which require csr programs. such initiatives create economic independence by supplying individuals with market-relevant skills. studies show that education-based csr initiatives like scholarship programs, technical skill development, and improvements in educational infrastructure positively impact human capital and earnings potential (anam et al., 2024). in iraq, where youth unemployment is high, such csr-driven interventions can transform social realities. hence, the study developed the hypothesis as: h1 (a): csr (education) has a positive association with poverty alleviation in iraq. healthcare is a cause and consequence of poverty; overall health challenges decrease efficiency, raise expenditures, and perpetuate the poverty cycle. csr initiatives targeting health needs, from funding clinics to awareness campaigns, directly deal with these challenges (wu et al., 2022). in an environment where healthcare infrastructure is in a lot of places insufficient, csr programs could provide desperately needed services in iraq. mobile centres, disease control (hiv), health promotion, and disease prevention activities, in addition to information, training, and interaction strategies, can improve economic resilience through disease prevention and control, which puts financial and physical burdens on low-income households (mirza et al., 2024). companies that offer community health boost productivity and their public image (yang, 2023). health as a prerequisite and result of economic development is very important. critical shortages in csr-driven health interventions, including mobile clinics and awareness programs, are among the top priorities in rural areas of iraq. these initiatives ease health care system strain during periods of strain and increase workforce efficiency through reduced sick days. it's accepted that better health leads to lessening poverty via trickle-down effects (ventura & jauregui, 2023). hence, the study developed the hypothesis as: h1 (b): csr (health) has a positive association with poverty alleviation in iraq. agbioforum, 26(2), 2024 | 13 kadhim et al — leveraging corporate social responsibility for poverty alleviation: exploring csr role… development can be divided into several sectors, with infrastructure being one of the most crucial. through csr initiatives, companies can generate employment, provide education, and create markets for their products, all of which contribute to poverty alleviation. in iraq, a nation recovering from years of conflict, csr-driven infrastructure projects can address critical gaps and stimulate development (harahap, 2021). beyond their direct income impact, infrastructure developments attract extra capital, producing a chain reaction that benefits local economies (baba & moustaquim, 2021). as drivers of regional growth, csr-led infrastructural interventions have always transformed communities by providing tools for sustainable development (wang & ye, 2024). infrastructure is the economic backbone upon which all other activities are established. directing csr efforts to infrastructure areas of roads, electricity supply, and telecommunications can aid companies to overcome the structural deficiencies that block access to markets, work opportunities, and learning (chen, he, & yang, 2024). investments are of very much value to iraq and other countries, particularly the rural communities that are experiencing the challenges of the disparities of development. these efforts enhance movement and connectivity, consequently enabling increased economic participation. hence, the study developed the hypothesis as: h1 (c): csr (infrastructure) has a positive association with poverty alleviation in iraq. csr is one method for battling poverty and encouraging economic growth in iraq. this entails examining its possible benefits and determining measurable results. using current research, case studies, and literature as foundation, the hypotheses for this department tackle the impacts of csr on economic growth, education, healthcare, and community trust. understanding these relationships is crucial to maximizing csr's effect in producing change in local communities. each hypothesis elaborates csr impact and relates corporate actions to social welfare in selected domains. numerous results suggest that poverty alleviation encourages local economic development. csr fosters opportunities for communities to make the most of funding and industry access for smes. the experience of awid demonstrates that those economic shocks that threaten the growth of smes in unstable economies like iraq require poverty alleviation and encourage job creation and regional economic growth. corporate governance forms an important element for successful csr activities. participation in development programs becomes more crucial once corporate entities are considered partners. csr activities should build trust and promote sustainable partnerships. in iraq, a variety of trustbuilding interventions, such as active participation in decision-making processes and maintaining consistent, open communication, play a crucial role in supporting effective corporate social responsibility (csr) initiatives aimed at addressing widespread poverty. moreover, establishing collaboration alliances is undoubtedly essential, as these vital partnerships ensure that the various efforts implemented are not only consistent with the local context but are also truly responsive and adaptable to the specific and diverse needs of the community. working together in this way enhances the overall effectiveness and impact of initiatives, promoting a sense of ownership and participation among local stakeholders. hence, the study developed the hypothesis as: h2: csr and poverty alleviation has a positive association with poverty alleviation in iraq. methodology a methodological and systematic approach was adopted to assess the results of csr in reducing poverty in iraq. this assessment applied a design that considered exact sampling techniques, appropriate data collection techniques, and regional differences that might impact outcomes. a sample of 357 respondents was selected to be general enough across organizational sectors and demographic variables. this sample size enabled researchers to examine multiple outcomes of csr initiatives. main data are gathered using a closed-ended questionnaire regarding perceptions of csr's influence in the educational, well-being, infrastructural, and economic. the last section (25 items) was utilized for investigation based on willingness to pay (wtp) responses have been scaled from strongly disagree (1) to strongly disagree (five). field coordinators distributed survey forms online and physically when needed to make sure reach. this dual approach allowed broad access to the survey and ensured responses reflected iraq's socio-economic landscape. gathering data covered both urban centers like basra and baghdad and several rural areas and thus represented all sections of society. differential findings amongst locations analysed revealed regional differences in development prevalent throughout the nation. this particular analysis talked about the crucial need for corporate social responsibility (csr) in the bottom and top of iraqi society, as illustrated in table 1. it includes individuals from all ages, genders, education levels, work, and geographical areas of iraq in this research. this wide spectrum of participation offers a foundation for assessing corporate social responsibility (csr) impacts on poverty reduction in the country. it utilizes established variables and dependable and appropriate measurement tools to critically analyse the interaction of effects of csr initiatives on poverty alleviation in iraq. these variables incorporate the primary elements of csr activities and their perceived effects on local communities. the questionnaire is organized to capture the degree of participation and the perceived success and effect on the larger society of people engaged in numerous csr initiatives. it is also imperative to carefully consider and evaluate the various and complex outcomes of csr initiatives, including comprehensive programs targeted at eradicating poverty, creating meaningful and sustainable employment opportunities generated by such types of impactful initiatives, supplying vital academic guidance and support for disadvantaged populations, as well as improving access to quality medical care along with comprehensive health services and improving living conditions for each one of those involved in the processes, along with determining new and revolutionary financial advancement opportunities that can efficiently propel sustainable growth and long-term development. agbioforum, 26(2), 2024 | 14 kadhim et al — leveraging corporate social responsibility for poverty alleviation: exploring csr role… table 1: demographic profile of respondents. demographic variable category percentage gender male 59% female 41% age group 18-25 22% 26-35 37% 36-45 25% 46 and above 16% education level high school 38% undergraduate degree 34% postgraduate degree 17% no formal education 11% occupation self-employed /entrepreneur 21% private sector employee 23% public sector employee 31% student 15% unemployed 10% geographic distribution baghdad 31% basra 13% babylon 20% other urban centres (e.g., mosul) 22% rural areas 14% data analysis methods and the relationship between csr activities and poverty reduction in iraq are described. associations among variables were examined by smartpls. data were interpreted via descriptive and deductive statistical techniques. mathematical tests established validity and reliability of the questionnaire. cronbach's alpha was computed for internal consistency of multi-item scales, and values over 0.70 were deemed acceptable (hair, howard, & nitzl, 2020). constructs were validated through factor analysis, and items measured csr awareness and poverty alleviation. several regression analyses were applied to evaluate the relationship between csr efforts and selected poverty alleviation measures (employment opportunities, healthcare accessibility, and stability). a p 0.05 for this particular research indicates that csr contributes to poverty alleviation in evaluated organizations (hair et al., 2017). lastly, 3 csr dimensions—health, infrastructure, and education—are regarded as predictors, with poverty reduction acting as a facilitator and economic development acting as a dependent variable, as seen in figure 1. figure 1: theoretical model. research findings the shapiro-wilk test was used because it's hypersensitive to sample sizes and robust to normality testing. a p-value below 0.05 indicates that data have a normal distribution and could be further examined (hair et al., 2017). the kurtosis and skewness coefficients were computed to judge asymmetry in the data. descriptive stats for skewness and kurtosis test for normality (values -1 to 1 indicate roughly normal distribution). the results can be found in table 2. table 2: descriptive statistics and data normality test. variable mean std. deviation min max skewness kurtosis shapiro-wilk csr (education) 3.46 0.86 1.00 5.00 -0.12 -0.90 0.06 economic development 3.66 0.93 1.00 5.00 -0.15 -0.80 0.07 csr (infrastructure) 3.57 0.87 1.00 5.00 -0.19 -0.85 0.08 poverty alleviation 3.61 0.91 1.00 5.00 -0.06 -0.80 0.09 csr (healthcare) 3.44 0.80 1.00 5.00 -0.13 -0.95 0.07 the reliability and validity of the measuring model were analysed to analyse the influence of csr on poverty reduction in iraq. internal consistency reliability, indicator reliability/convergent validity, and discriminant validity were thoroughly examined using cronbach's alpha, composite reliability, factor loadings, and average variance extracted (ave) statistical tools. additionally, the fornelllarcker criterion and cross-loadings have been adopted to better evaluate the model's performance and accuracy. studies conducted thoroughly verified that the various constructs in question met the essential reliability and validity requirements that are critical for the research methodological framework employed. the analysis of internal consistency reliability confirmed that the elements included in each specific construct effectively assess the intended notion or concept. both cronbach's alpha and composite reliability (cr) are regarded as satisfactory and reliable when their values exceed 0.7; our findings consistently showed values greater than 0.70, indicating strong reliability. furthermore, it is important to note that factor loadings and average variance extracted (ave) values must not exceed the threshold of 0.50; the results from this thorough investigation demonstrated that these values indeed satisfied the necessary conditions for the csr education health infrastructure poverty alleviation economic development agbioforum, 26(2), 2024 | 15 kadhim et al — leveraging corporate social responsibility for poverty alleviation: exploring csr role… constructs to be deemed valid. the findings are revealed in table 3. table 3: reliability and validity statistics. construct alpha cr ave csr (education) 0.80 0.86 0.62 economic development 0.82 0.83 0.60 csr (infrastructure) 0.83 0.85 0.66 poverty alleviation 0.79 0.80 0.59 csr (healthcare) 0.81 0.88 0.61 table 4: heterotrait-monotrait ratio (htmt). construct pair htmt value csr (education) 0.68 economic development 0.58 csr (infrastructure) 0.54 poverty alleviation 0.60 csr (healthcare) 0.58 the reliability assessment of all the constructs used in the study is presented in table 4. to further examine discriminant validity among the constructs, the heterotrait-monotrait (htmt) ratio matrix output is also provided in table 4. none of the htmt values exceed the recommended thresholds of 0.85 or 0.90, indicating that the constructs demonstrate good discriminant validity. this confirms that the constructs are well differentiated and suitable for examining the relationship between csr activities and poverty alleviation outcomes in iraq. as per the htmt values, all values are below the 0.85 threshold, supporting strong discriminant validity among the constructs. the structural model test aims to validate the assumed relationships between csr practices and their impact on poverty reduction in iraq. this analysis includes the path coefficients, their significance levels, and indices that indicate the model's fit, revealing the strength and direction of the relationships between the constructs. additionally, this section evaluates the model’s predictive power and overall fit to ensure that the impact of csr on poverty alleviation is both novel and reliable. table 5 summarises the path coefficients, providing insight into the effectiveness and direction of the relationships among the study variables. each path coefficient is calculated for statistical significance, demonstrating the extent to which csr activities influence poverty-reduction factors such as economic development, community support, and educational access. the coefficients indicate that csr has a significant impact on these factors, contributing to the escape from poverty in iraq. all path coefficients are positive and statistically significant (p < 0.001), highlighting the role of economic development, community support, and education in alleviating poverty. the positive relationships suggest that csr strategies indirectly reduce poverty through these channels, as shown in table 5. table 5: path coefficients and significance levels. path coefficient (β) t-value p-value hypothesis supported csr (education) → poverty alleviation 0.43 5.87 <0.001 yes csr (healthcare) → poverty alleviation 0.53 6.33 <0.001 yes csr (infrastructure) → poverty alleviation 0.40 4.25 <0.001 yes poverty alleviation → economic development 0.39 4.76 <0.001 yes table 6 presents the model fit indices, which are crucial to assess the model's fit together with the data. the important factors include standardised root mean square residual (srmr), normal fit index (nfi), and comparative fit index (cfi). results show that the model fits within acceptable thresholds, with srmr under 0.08 and cfi and nfi above 0.90, as recommended. these findings demonstrate the model is robust and quality in detailing causal relationships between csr activities and poverty alleviation results in iraq. the model's adequacy and effectiveness in illustrating these intricate relationships are clearly shown through various analyses. note that all model fit indices are above the suggested thresholds, indicating the model is consistent with the real data gathered. this further suggests the proposed links between csr practices and poverty reduction in the specific place where people live are substantiated and theoretically based on literature. the model's agreement with observed data reassures stakeholders that these relationships are valid and that csr methods should be holistically dealt with to tackle poverty, as shown in table 6. table 6: model fit indices. fit index value acceptable threshold model fit srmr 0.047 < 0.08 good nfi 0.91 < 0.90 good cfi 0.93 < 0.90 good table 7 presents the results of the predictive relevance (q²) assessment, conducted using the blindfolding method, which is widely recognised for evaluating the latent variables of the model. positive q² values indicate that the model can predict relevance in the dependent constructs, thereby demonstrating its ability to estimate outcomes related to poverty alleviation through csr support. the positive q² values affirm that the model effectively captures the relationships and can provide valuable insights for future predictions, particularly regarding csr's impact on poverty reduction in iraq. the positive q² values for all endogenous variables further confirm that the model possesses predictive power, underscoring the role of csr activities as an effective means of alleviating poverty. these activities achieve this by influencing economic development, community support, and educational access, as illustrated in table 7. table 7: predictive relevance (q²) for endogenous variables. endogenous variable q² value economic development 0.34 csr (healthcare) 0.42 csr (infrastructure) 0.33 csr (education) 0.28 poverty alleviation 0.37 discussion results indicate that poverty reduction in iraq is clearly attached to the contribution of csr to economic development. particularly in areas of education, infrastructure, and health, csr initiatives directly help reduce poverty through investments in companies, human capital, agbioforum, 26(2), 2024 | 16 kadhim et al — leveraging corporate social responsibility for poverty alleviation: exploring csr role… and better employment and services. enhancements in workforce productivity, economic stability, and consumer spending brought on by csr contribute to long-term socioeconomic improvement and can be a tool utilized to advance csr objectives. in iraq, where a fragile economy and high poverty levels hinder progress, any meaningful advancement is contingent upon csr addressing the underlying issues impeding development. in this context, corporate engagement in social responsibility has the potential to drive significant positive change. csr activities, especially in education, health, and infrastructure, are usually linked with poverty reduction. education could be a tool against poverty; companies in iraq invest in school programs, vocational education, and scholarships to provide quality training to marginalized communities. as triatmanto & bawono (2023) highlight, increased literacy & skill development directly decrease unemployment and increase economic contribution. in a similar manner, csr healthcare programs (hospital funding, medical camps, disease prevention) enhance public health and workforce capacity, as freeman et al. (2025) note. by addressing poor health, which increases medical expenses and limits work opportunities, csr interventions are necessary. infrastructure development, as pointed out by owusu-manu et al. (2019), promotes economic mobility with transportation networks, electricity, and clean drinking water, producing employment, growing businesses, and boosting financial resilience. empirical research confirms the efficiency of csr driven investments in education, health and infrastructure. corporate-funded education programs encourage employment and economic participation in developing nations. sharma (2019) found that corporate-funded education programs increase employment opportunities and economic participation in developing nations. uduji, okolo-obasi, & asongu (2020) also stated that csr in education sector increases literacy rates & work access in post-conflict areas, goenka & liu (2020) recommended that csr investments lower disease prevalence and promote participation in workforce. they also reported lower mortality and increased labour productivity with corporate-funded health programs. additionally, fernando, chiappetta jabbour, & wah (2019) note that corporate investments in public utilities have raised living standards & employment. infrastructure development, as noted by owusu-manu et al. (2019), promotes economic inclusion through reducing geographic barriers to accessing services. these studies collectively underscore the critical role of csr initiatives in education, healthcare, and infrastructure in tackling poverty in iraq. they demonstrate that lowering poverty is related to economic growth, which might be the case in case a country's economy is strengthened, which might lower poverty. this raises workforce participation, consumer spending, and economic stability. csr efforts produce a financially secure and competent workforce, which attracts investments and enhances business performance. better health implies less healthcare expense and absenteeism for more economic activity. also, infrastructure development generates business opportunities and trade with accompanying jobs, which stimulate long-term economic development. the relationship between poverty reduction and economic growth is firmly supported by existing research. desai & joshi (2019) found that reducing poverty contributes to national economic performance by enhancing labour force participation and stabilising markets. according to fukase & martin (2020), poverty reduction stimulates aggregate demand, which in turn fosters industrial expansion and national economic prosperity. the long-term benefits of csr in alleviating poverty appear to outweigh the immediate social impacts. moreover, reduced poverty is linked to a more skilled workforce and greater business growth. morris, santos, & neumeyer (2020) observed that individuals above the poverty line are more likely to invest in education and entrepreneurship, thereby contributing to economic diversification. additionally, lower poverty levels reduce financial instability and mitigate the risk of economic crises, as noted by chen, kumara, & sivakumar (2023). these findings indicate that csr-driven poverty reduction benefits individuals and benefits iraqi long-term economic development. in a financially turbulence-ridden iraq, csr initiatives focusing on poverty reduction can be a driver of sustainable development. creation of jobs, living standards, and financial resilience need investments in education, infrastructure, and health. the convergence of csr, economic growth, and poverty reduction highlights the need for corporate engagement in solving iraq's economic issues to guarantee a safe business environment for future prosperity and growth. conclusion this research suggests that csr initiatives decrease poverty through economic growth, neighbourhood wellbeing, and education accessibility in iraq. it demonstrates that csr could act as an agent of social and economic progress, particularly in development and post-conflict contexts. businesses in iraq can tackle pressing social issues while also enhancing their profile and relations with stakeholders. this convergence of social and business goals shows csr's potential to produce shared value. ultimately, csr endeavours can bring about a just and empowered society and make csr a strategic and ethical requirement for companies conducting business in iraq. implications this analysis contributes to the csr literature by analysing its poverty reduction activity in a post-war developing nation. while research has previously considered csr's economic and environmental impacts, the present study pays special attention to its social dimension, poverty-fighting. following stakeholder theory, which holds that businesses owe obligations to beyond shareholders to consider wider social goals, the results suggest that csr is often a driver of economic and social growth in iraq. showing that csr can improve job creation, community development, and educational opportunities, this analysis offers proof of exactly how csr can bring about poverty reduction in economically challenged regions. for business leaders in iraq, this study highlights csr as a social goodwill-oriented strategy that also results in financial success. managers must look into csr not as a price but as an investment in the societal infrastructure that ensures long-term business sustainability. participation in community development initiatives may enhance corporate agbioforum, 26(2), 2024 | 17 kadhim et al — leveraging corporate social responsibility for poverty alleviation: exploring csr role… reputation and trust with local individuals, while investments in community and education initiatives might guarantee a competent workforce and secure financial conditions. limitations and future directions this study offers crucial insights but has several limitations. for instance, its cross-sectional architecture based on data from one temporal point limits its capability for causal links to be resolved. future research might use longitudinal approaches to remain within the long-term effect of csr on poverty reduction. secondly, the research is centred around iraq, and the findings might be less generalizable to various other developing nations. additional studies could 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https://doi.org/10.1016/j.pacfin.2024.102284 https://doi.org/10.1007/s13132-023-01185-0 https://doi.org/10.1007/s13132-023-01185-0 https://doi.org/10.1016/j.pacfin.2022.101881 https://doi.org/10.1016/j.pacfin.2022.101881 https://doi.org/10.56028/aemr.6.1.491.2023 https://doi.org/10.56028/aemr.6.1.491.2023 agbioforum, 27(1): 49-57. ©2025 agbioforum shakir et al — towards alleviating poverty: study the impact of e-commerce, digital marketing, and digitalization's… towards alleviating poverty: study the impact of e-commerce, digital marketing, and digitalization's on improving economic growth in iraq ahmed hasan shakir universitare de doctorat din ase bucureşti. orcid id: https://orcid.org/0009-0004-8892-3826 email: shakirahmed21@stud.ase.ro kadhim ghaffar kadhim college of administrative sciences, business administration department, al-mustaqbal university, babylon 51001, iraq. orcid id: https://orcid.org/0000-0002-3106-6550 email: kadhim.ghaffar@uomus.edu.iq amjed hameed majeed* college of administrative sciences, business administration department, al-mustaqbal university, babylon 51001, iraq. orcid id: https://orcid.org/0000-0001-9015-5329 email: amjed_hameed@uomus.edu.iq prof dr hasan majdi college of engineering and technologies, al-mustaqbal university, babylon 51001, iraq. orcid id: https://orcid.org/0000-0001-6752-4835 email: dr.hasanshker@uomus.edu.iq hayder jawad kadhim murshedi university of kufa, iraq. orcid id: https://orcid.org/0009-0004-8693-8872 email: haiderj.kadum@uokufa.edu.iq with the increasing growth in numerous aspects of human life and activities, technology is becoming an unavoidable part of everyday life. it has become apparent that without the use of technology much can be lost in terms of productivity. e-commerce has enabled consumers to greatly reduce their physical efforts in dealing with businesses which translates to high level of convenience. in this study, the how e-commerce has changed the business landscape in iraq will be assessed alongside digitaliztation and iraq’s economic growth. the research shows like always that there is a very positive relation between the ecommerce adoption emarketing tools along other factors, the business growth in doing so facilitates economic growth undoubtedly. further adopters of e-commerce are found to do business with greater contentment and satisfaction as they have lower costs on conducting business. in turns resulting in even greater business expansion goals and objectives. e-commerce along with growing digital marketing tools allows for business expansion while greatly saving time and many physical resources. the outcome of the study provides an impetus for policy formulation and its practical contribution to the study of digital economy concerning the deployment of key resource such as internet. keywords: e-commerce, digital marketing, digitalization's, economic growth, poverty alleviating. introduction the world is undergoing a radical transformation and businesses are changing their nature due to technological advancements while experiencing growth across factors of production, this revolution is termed as a digital transformation (kraus et al., 2021; van veldhoven & vanthienen, 2022). in the case of underdeveloped countries, the use of e-commerce, digital marketing, and even the broad spectrum of becoming digital may open up avenues to form new businesses and hire entrepreneurs and obtain previously hard to observe markets, the aforementioned shift is of a crucial nature for iraq, who is attempting to rebuild its economy while managing the socio-political factors it has to face (allawi & alyouzbaky, 2024; jasim, hameed, & jasim, 2021). one of the most effective methods of repairing the economic structures of iraq, rejuvenating the stale factors of competition, and ameliorating from the situation, is through seeking help from the digital transformation (yousif, morrar, & el-joumayle, 2023). empowering iraqi companies to transact on platforms that extend beyond homemade stores gives them more options and potential profit owing to e-commerce. one key factor enabling companies to deepen customer connections, build brands, and expand markets is digital marketing—it allows companies to engage with customers inexpensively, offers visibility benefits, and enhances customer loyalty (mukhtar, mohan, & chandra, 2023; zulfikar, 2023). as well as these factors, businesses are further enabled by digital literacy and better infrastructure. all of these are important milestones in the process of achieving sustainable development (aljabori, 2023). literature review e-commerce in iraq e-commerce has started to gain some significance due to a noticeable growth of internet users (from 0.2% in 2000 to 12.9% in 2019) and increased usage of mobile phones in iraq (hamakhan, 2021). however, the sector still faces some obstacles to its development. there is no existing frame or regulation at a governmental level for e-commerce activities. furthermore, the available infrastructure (logistic and financial) is not sufficient to meet the accepted standard for the development of this sector (ahi, sinkovics, & sinkovics, 2023). in 2020, due to the global pandemic of covid-19, the number of internet users in the middle east rose by 11 million to reach over 170 million on a pan regional level, while iraq accounted for 100 thousand additional new internet users. under this new development, local and regional business start-ups began to pay increasing attention to e-commerce activities to reach a large numbers of customers (elameer, 2021). local companies in the iraqi e-commerce market include miswaak (launched in 2019). miswaak is a local iraqi e-commerce company that provides a b2c platform to customers. it operates over a vast platform where people can buy groceries online. meanwhile, the market is dominated by daraz, the largest ecommerce shop in south asia, and amazon, an american multinational technology company that focuses on ecommerce, cloud computing, digital streaming, and artificial https://orcid.org/0009-0004-8693-8872 mailto:shakirahmed21@stud.ase.ro https://orcid.org/0000-0002-3106-6550 mailto:kadhim.ghaffar@uomus.edu.iq https://orcid.org/0000-0001-9015-5329 mailto:amjed_hameed@uomus.edu.iq https://orcid.org/0000-0001-9015-5329 mailto:dr.hasanshker@uomus.edu.iq https://orcid.org/0009-0004-8693-8872 mailto:haiderj.kadum@uokufa.edu.iq agbioforum, 27(1), 2025 | 50 shakir et al — towards alleviating poverty: study the impact of e-commerce, digital marketing, and digitalization's… intelligence. both daraz and amazon provide services to iraqi customers, and both players together dominate the business with 66% of the share in the iraqi market. on the other hand, the market is also filled with third parties such as tnt express, uae xpress, and ishipx to facilitate delivery outside iraq (iqbal et al., 2024). however, this service is not cheap and so far, effects only a small part of the iraqi market. online sales of goods or services are on the rise in iraq. there is an increasing preference for digital transactions in place of cash-on-delivery when consumers order goods or services through digital platforms or websites. it is said that it seems unlikely times are returning to pre-pandemic days with regards to e-commerce trends (alwan et al., 2023). the retail and services sectors have noticeable potential in entering the e-commerce market. the immediacy of posting and sharing on social media, and the potential to link social media posts to commercial websites through advertising links, are significant in promoting ecommerce. this reflects its critical importance in iraq’s aim of economic diversification and reducing dependency on the oil sector (antwi-boateng & al jaberi, 2022; firas abdullrada & ali waheeb, 2024). the role of digitalization in economic growth the digitalization of the world as an inevitable result of ict development went through its historical stages so that ecommerce, which can be considered as its final product, expanded since the mid-nineties of the last century (durand & baud, 2024; ertemel & civelek, 2022). yet, despite being in the same bandwagon of globalization and digitalization, iraq suffered delays in implementing standard practices, policies and models in the recent past. what iraq is to do is to urgently adopt and timely modify the western models or other successful examples implemented in the neighbouring countries, concentrating on building an adequate infrastructure with various supportive global services (alsaadi, cherepovitsyn, & semenova, 2022). besides, iraq is to develop a new strategy for e-commerce and digital marketing practices, which can open more opportunities for engaging in global trade, respectively (altememy et al., 2023). digital technologies enable creating a significant, sustainable and secure e-commerce and mobile commerce environment, which could link regions and remote parts of the vast country or even regions from surrounding the globe (elameer, 2021). this study explores how digitalization, e-commerce, digital marketing, and other age-specific business practices could support sustainable social and economic development, and how global trade may be facilitated. the e-commerce and other digital marketing practices are to enable high productivity, creativity, competitiveness, and innovation at a national and international level (tolstoy, nordman, & vu, 2022). the ability of cross-border ict applications could expand; participation in global markets thereby could foster the transformation of iraq’s economy and promoting the integration of all relevant stakeholders into the global market. further stimulation of the domestic population of young women, people with disabilities, and elderly people, whose access could be enhanced by digitalization is envisaged (firas abdullrada & ali waheeb, 2024; khrais, zorgui, & aboalsamh, 2023). the online platform for effective global communication is designed to ensure sufficient content, social and economic growth, and to facilitate social and economic development and competitive advantage in the wider country areas too. unique e-services are to foster life-long education and training, the ability to adopt to widespread profound changes occurring in society and work environments, and relevant to developing more efficient public services – e-health, epolice, etc – are designed to respect the cultural traditions of the country that is to ensure that e-commerce is sustainable and acceptable to the broadest number of potential beneficiaries, particularly those in rural and remote areas (carrera-rivera, larrinaga, & lasa, 2022; izquierdo-yusta et al., 2021; marienfeldt, 2021). the strategies and policy are designed to encourage regional, national, and international investment and cooperation in enhancing global trade, respectively, are supportive and complementary. all of those digital actions support governance development, software applications respect copyright and privacy legislation, transparency, and accountability, and reduce informal aspects, and finally, the improved level of digital skills of workforce and older persons, and thus employability in a world of rapid change of the early xxi century (akour & alenezi, 2022; bennett & mcwhorter, 2021). such a digital strategy is to unite, coordinate, and boost all activities of the relevant stakeholders to respond to the common goal of establishing as rapidly as possible an extensive digital global environment that would ensure wider and more efficient participation in the global market to foster socio-economic development and poverty reduction, and eventually provide the good standards of living to all inhabitants of all regions of iraq (begum & musa, 2023; totonchi & ahlan, 2023). many practical cases and theoretical approaches to digital and age-specific businesses to explore the best possible ways to connect with the wider world markets in the forthcoming global dimension of the digital era to avoid delays, difficulties and wrong moves in attempting to buildup a virtual business island detached and unlinked to the rest of the globalized world-market network of the new millennium, presented in the study. hypothesis development based on previous studies, this research puts forward the following hypotheses: hypothesis 1: e-commerce has a positive effect on the economic growth of iraq. justification: e-commerce opens new opportunities for businesses, lowers transaction costs, and increases market access, which in turn encourages trade and supports economic diversification. hypothesis 2: digital marketing strategies positively affect the economic growth of iraq. justification: by allowing businesses to reach wider audiences at lower costs, digital marketing enhances competition, innovation, and market expansion. hypothesis 3: digitalization has a positive effect on the economic growth of iraq through gains in productivity, reduction in costs, and the creation of new industries. rationale: digitalization increases efficiency in business agbioforum, 27(1), 2025 | 51 shakir et al — towards alleviating poverty: study the impact of e-commerce, digital marketing, and digitalization's… and the public sector, cuts operational costs, and fosters innovation, thus driving economic growth. methodology it mainly uses quantitative methods to investigate ecommerce, digital marketing, and digitalization that influence economic development in iraq. quantitative methodologies provide a hard approach to explore the relationship of the country's digital transformation with key performance indicators of a country's economic growth, namely: gdp, level of employment, and business expansions. the study only targets the iraqi firms currently using or intend to use digital tools in their operation. the data is collected based on a survey instrument, and the analysis uses regression analysis to assess the impact of these digital variables on economic outcomes. research design this study is quantitative and cross-sectional in nature. the data is collected through a survey that measures the level of e-commerce, digital marketing, and digitalization of iraqi firms. the cross-sectional study will be appropriate for this research as it will take a snapshot at one point in time. type of research: quantitative, cross-sectional research instrument: structured questionnaire with closedended questions to ensure consistency in data gathering for comparability and reliability of the data gathered. method of data collection: online and offline surveys so as to reach a wide variety of businesses analytical technique: regression analysis to test the hypotheses relating to the economic effects of e-commerce, digital marketing, and digitalization. sample the sample comprises businesses in different sectors in iraq, including retail, finance, telecommunications, and manufacturing; each portrays varying levels of digital adoption. this kind of diversity gives insight into how digital tools impact the trajectory of economic activities in the major sectors of iraq. sample size: a total of approximately 300 businesses were selected to adequately represent the digital landscape of iraq. sampling method: random sampling is selected from the business directories and industry databases to achieve diversity in business types, sizes, and sectors. target respondents: business owners, marketing managers, it managers, and department heads engaged in e-commerce or digital marketing, as they can provide insights into the digital strategies and their perceived effects on growth. sample population this research aims at a variety of participants in iraq's digital economy: consumers: those who will use e-commerce or digital services. this covers the demand side. firms: small and medium enterprises, large firms, and start-ups that are into digital marketing or e-commerce. government officials: officials of agencies that will be advocating for digital transformation, such as the ministry of communications and the central bank. service providers: these are firms like internet providers, digital payment systems, and logistics companies that will facilitate digital transactions—(unctad, 2020; world bank, 2021). this measure captures the economic impact of digital transformation on different demographic and economic groups. data collection methods a mix of data collection methods increases the accuracy and depth of insights on digital adoption and its economic impacts: surveys and questionnaires: these are sent to business managers and service providers to collect quantitative data on digital adoption, business practices, and perceived economic impact of digital tools. interviews: semi-structured interviews with key stakeholders, including government officials and business leaders, provide qualitative insights into the digital economy of iraq. focus groups: the use of small group discussions in relation to digital services provides an in-depth exploration of users' experiences, motivations, and challenges, further adding qualitative depth to the findings. secondary data: data from the central statistical organization of iraq, the world bank, and the ministry of communications put digital trends and economic indicators into perspective. by combining quantitative and qualitative data, this research shows the holistic view of the impact of digitalization on the economy of iraq, thereby increasing the reliability and depth of the findings to understand the relationship between digital transformation and economic growth in a nuanced way. demographic profile of the sample it is very important to know the demographic profile for understanding the impact of digital technologies on economic growth in iraq. the sample should be representative of the population of iraq, taking into consideration major demographic characteristics such as age, gender, education level, occupation, and geographic location. this diversity ensures that there is a holistic view of how different segments of society adopt digital technologies and how the economic impact varies across these segments. table 1 below provides a breakdown of the distribution of each demographic in the study population. data collection procedure surveys are administered to businesses to achieve thorough data collection, including those with limited internet access. the questionnaire covers issues of ecommerce adoption, digital marketing strategies, and digitalization initiatives, among others, and points to key business performance indicators such as revenue growth, market expansion, and productivity improvements. respondents answer on a likert scale of 1–5, from strongly disagree to strongly agree, to assess the perceived effect of digital technologies on economic growth. such a methodological approach captures detailed insight into how firms view and experience digital transformation in the economic landscape in iraq. table 2 below provides data collection from the respondents. agbioforum, 27(1), 2025 | 52 shakir et al — towards alleviating poverty: study the impact of e-commerce, digital marketing, and digitalization's… table 1: demographic profile. demographic variable category percentage gender male 57% female 43% age group 18-25 21% 26-35 38% 36-45 27% 46 and above 14% education level high school 31% undergraduate degree 39% postgraduate degree 16% no formal education 14% occupation self-employed/entrepreneur 20% private sector employee 34% public sector employee 21% student 14% unemployed 11% geographic distribution baghdad 39% basra 15% erbil 14% other urban centers (e.g., mosul) 17% rural areas 15% table 2: data collection overview. variable source collection method scale respondents e-commerce adoption survey questionnaire survey likert scale (1-5) business owners/managers digital marketing use survey questionnaire survey likert scale (1-5) marketing managers digitalization level survey questionnaire survey likert scale (1-5) it managers economic growth business performance reports annual revenue, market share percent change (annual) finance departments results descriptive statistics and normality tests need to be performed before proceeding with inferential statistical analyses of the data. such preliminary evaluations provide a very fruitful insight into the central tendency, variability, and distribution of the data. the paper assesses the impact of e-commerce, digital marketing, and digitalization on economic growth in iraq. this study uses a sample size of 300 observations. the major variables included are: e-commerce adoption rate: percentage of businesses and consumers engaging in online transactions. digital marketing usage: percentage of businesses using digital marketing approaches. internet penetration: percentage of the population with access to the internet. digital payment usage: percentage of all transactions carried out through digital payment means. gdp growth: the annual percentage change in gdp, which measures economic growth. descriptive statistics descriptive statistics summarize the data set using measures of central tendency, such as mean and median, dispersion, including standard deviation, and range, including minimum and maximum values. these metrics form the foundation of understanding the general trends and patterns within a dataset, setting the stage for further analysis as the data in table 3. table3: descriptive statistics of key variables (n=300). variable mean median standard deviation minimum maximum e-commerce adoption rate (%) 33.15 32.00 9.42 11.00 53.00 digital marketing usage (%) 41.50 43.00 12.25 15.00 65.00 internet penetration (%) 57.20 57.50 12.05 29.00 81.00 digital payment usage (%) 44.75 24.00 6.89 12.00 41.00 gdp growth (%) 4.25 4.20 0.89 1.50 5.20 interpretation e-commerce adoption rate: the average e-commerce adoption rate from the sample presented is around 33.15 percent, with values going between 10 percent and 52 percent. a very large variation is shown within this range for different businesses and consumers in adopting online transactions. the mean level of digital marketing usage among firms is 41.50%, and the standard deviation is 12.25%. this moderate variability indicates that a fair share of businesses is involved in digital marketing, yet there is tremendous potential for both its spread and enhancement. a. internet penetration: the average internet penetration rate is 57.20%, with a range of 29% to 81%. this wide range agbioforum, 27(1), 2025 | 53 shakir et al — towards alleviating poverty: study the impact of e-commerce, digital marketing, and digitalization's… shows the differing levels of access to the internet among the population, which might also influence the adoption speed of digital technologies. b. digital payment usage: on average, the usage level is 44.75% of all transactions that are digital. that is a positive trend in adopting digital transactions, although there is still a lot of headroom for growth. gdp growth: the sample period average value for the gdp growth rate of iraq is 4.25%. its standard deviation is 0.88%. this relatively low standard deviation tells us that iraqi economy has entered a phase characterized by steady growth. data normality test to check for normality of the data, we used the shapirowilk test along with measures of skewness and kurtosis. the shapiro-wilk test will allow us to find out if the distribution of each variable is close to normal. a p-value greater than 0.05 will indicate that the data follows a normal distribution, hence our further statistical analysis assumptions can be supported as the data in table 4. table 4: data normality test results. variable shapiro-wilk statistic p-value skewness kurtosis normality (p > 0.05) e-commerce adoption rate 0.982 0.065 0.08 -0.15 yes digital marketing usage 0.976 0.080 0.12 0.35 yes internet penetration 0.973 0.092 0.24 0.12 yes digital payment usage 0.962 0.036 0.49 0.76 yes gdp growth 0.985 0.110 -0.15 -0.25 yes interpretation shapiro-wilk test results indicate e-commerce adoption rate, digital marketing usage, internet penetration, and gdp growth are normally distributed with p-value > 0.05. however, for digital payment usage, the p-value is 0.036. thus, the digital payment usage is fairly different from normal distribution because the values of skewness (0.49) and kurtosis (0.76) possess a mild positive kurtosis and heavier tail compared to a normal distribution. visualization of data normality quantile-quantile (q-q) plots q-q plots are commonly used to evaluate the normality of data. in these plots, the quantiles of the data that have actually been observed are compared to the quantiles of a normal distribution that has theoretically been predicted. when the data points are closely aligned around a 45-degree reference line, it indicates that the data are likely normally distributed. e-commerce adoption rate has most of its data points approximately following the reference line, meaning the assumption for normality would hold. digital payment usage shows deviation from the line at some instances and thus presents a slight departure from normality. implication of normality test results through this, in other words, parametric tests on pearson's correlation and regression analysis can further be explored because there is normality for such variables as ecommerce, digital marketing, and gdp growth. since digital payment usage is not normally distributed, this may be appropriate with non-parametric tests (like spearman rank correlation) or log transformation might enable further analysis to order. measurement model assessment the assessment of the measurement model is a vital step that must be undertaken in order to establish the validity and reliability of the constructs in an sem framework. this assessment will ensure that the latent variables of ecommerce adoption, digital marketing usage, and digitalization are adequately expressed by their respective observed indicators. key facets of this assessment include construct reliability, convergent validity, and discriminant validity. reliability and convergent validity reliability shows the internal consistency of the constructs which can be gauged using cronbach's alpha and cr. the reliability coefficient is very high, which will indicate that more items are coherent while measuring the particular construct. convergent validity basically tells whether the indicators of a particular construct are well-correlated enough to confirm they are measuring the same underlying concept. this is typically measured using the average variance extracted (ave), which should be above 0.5 to reflect strong convergent validity. if these measurement criteria are met, one can confirm that his or her constructs are well-represented, hence strengthening the findings of the study as the data in table 5. table 5: reliability and convergent validity results. construct cronbach’s alpha composite reliability (cr) average variance extracted (ave) e-commerce adoption rate 0.82 0.87 0.62 digital marketing usage 0.79 0.85 0.59 digitalization 0.81 0.88 0.64 economic growth (gdp growth) 0.76 0.82 0.58 consequently, cronbach's alpha values greater than 0.70 indicate that all the constructs are internally consistent, ensuring that the items measuring each construct are reliable. additionally, values of cr greater than 0.80 confirm the reliability of the constructs, indicating that the indicators are in a position to reflect the concepts consistently. the values of ave above 0.50 mean that the respective indicators for each construct exhibit good convergent validity in that they essentially measure the same underlying construct on average. agbioforum, 27(1), 2025 | 54 shakir et al — towards alleviating poverty: study the impact of e-commerce, digital marketing, and digitalization's… discriminant validity it also confirms that discriminant validity means constructs intended to be different remain different. researchers very often employ two methods in evaluating discriminant validity: the fornell-larcker criterion and the heterotraitmonotrait ratio, abbreviated as htmt. in the light of the fornell-larcker criterion, the square root of ave for each particular construct should be higher than its correlations with other constructs. htmt values below 0.85 mean that discriminant validity is established, further proving that the constructs are different as the data in table 6. table 6: discriminant validity (fornell-larcker criterion). construct e-commerce digital marketing digitalization economic growth e-commerce 0.78 digital marketing 0.45 0.76 digitalization 0.51 0.49 0.81 economic growth 0.39 0.35 0.45 0.77 the diagonal values are the square root of the average variance extracted (ave) for each construct and are higher than the correlations of those constructs with other constructs. that means discriminant validity exists according to the fornell-larcker criterion as the it shown in table 7. table 7: heterotrait-monotrait ratio (htmt). construct e-commerce digital marketing digitalization economic growth e-commerce 0.55 0.63 0.49 digital marketing 0.57 0.43 digitalization 0.51 economic growth all htmt values are below 0.85, hence discriminant validity. model fit indices the general adequacy of the measurement model is examined through several model fit indices, namely: the chi-square/df ratio, the comparative fit index (cfi), the root mean square error of approximation (rmsea), and the standardized root mean square residual (srmr) as it shown in table 8. table 8: model fit indices. fit index recommended value observed value chi-square/df ratio < 3.0 2.46 comparative fit index (cfi) > 0.90 0.94 rmsea < 0.08 0.06 srmr < 0.08 0.07 the chi-square/df ratio, below the threshold of 3 with 2.46 value, gives reason for an appropriate model fit. the cfi is 0.94, which is above the threshold of 0.90 recommended to indicate a good fit for the model. in addition, the values for rmsea and srmr are below 0.08, which again supports the fact that the model fits the data well. discussion of results reliability: all the constructs reflect internal consistency, as the cronbach's alpha and cr values exceed the threshold levels. convergent validity: ave for all the constructs is greater than 0.50, thus meeting the requirements for convergent validity. discriminant validity: the fornell-larcker criterion and htmt show that the constructs are different from each other. model fit: the fit indices of the model denote that the measurement model is adequate to represent the data, thus ensuring that the relationships between e-commerce, digital marketing, digitalization, and economic growth are well represented. discussion it surveys the impact of e-commerce, digital marketing, and digitalization on the economic growth of iraq. the analysis showed that these factors contribute to the positive development of the iraqi economy through increasing access to the market, encouraging innovation, and improving operational efficiencies. e-commerce adoption will foster more interaction between consumers and businesses, while digital marketing exposes brands to wider audiences, thereby strengthening their competitive positioning. also, digitalization-including improved digital infrastructure and internet access-serves as a vital support system for these innovations. these findings further agree with prior studies showing that technology-related factors such as e-commerce, digitization of marketing, and digital infrastructure make a great difference in economic indicators, especially within developing countries (salim, 2022). normality and discriminant validity tests indicate that the constructs effectively measure the latent variables, hence confirming the model. the contribution of digital tools and platforms in iraq's economic growth trajectory has thus been proved, underpinning the transformative potential of digitalization in emerging markets. theoretical implications the present study contributes to the theoretical discourse on how the factors related to digitalization influence economic growth in developing economies. using an extended technology-organization-environment framework, our findings support the view of digital infrastructure, or the agbioforum, 27(1), 2025 | 55 shakir et al — towards alleviating poverty: study the impact of e-commerce, digital marketing, and digitalization's… "environment" aspect, as a precursor to technology adoption and economic progress. this research also supports resource-based theory because e-commerce and digital marketing constitute resources that promote competitive advantage and market expansion. in iraq, digital adoption is still improving. it contributes to the literature on digitalization and its economic impacts, therefore, by illustration, to the socio-economic transformation within emerging economies. managerial implications the results give actionable insights to business leaders and policymakers: digital infrastructure investment: the management should develop the digital infrastructure since internet access and digital platforms are so crucial in effective digital marketing and e-commerce implementation. digital payment systems: increasing digital payment options will increase the comfort for more customers towards online transactions and hence increase e-commerce adoption. emphasize digital literacy and training: business leaders in iraq should implement digital literacy programs to equip employees with relevant e-commerce and digital marketing tool skills, which ultimately enhance productivity and efficiency in operations. governmental policy support: supportive policies and incentives by government officials will drive the economy further, especially for e-commerce, and the establishment of policies and guidelines that enhance security and privacy in online transactions. limitations and future directions limitations the study has been geographically and sectorally bounded, which means the findings may not be generalized to other regions. also, the effects of digitalization may vary across different sectors in iraq, which this research did not particularly explore. limitation of data: the dependence on survey data from the study reduces its longitudinally showing ability. a longitudinal approach in this regard could give a more appropriate view over time of how digitalization actually influences economic growth. limitation in measurement: even though the model proved reliable and valid, the selected indicators may not provide a complete reflection of all aspects of digitalization, including cybersecurity and advanced analytics. future directions longitudinal studies: further research might look into how digitalization affects economic growth in iraq over a period of years-a more dynamic look at technological adoption and economic changes. cross-sectoral analysis: an analysis of the impact of digitalization across sectors may highlight specific opportunities and challenges facing different industries, thus yielding customized strategies for each sector. inclusion of more variables: this might be extended to cybersecurity, regulatory environment, and training programs on digital skills; these might also provide an insight into conditioning factors of e-commerce and economic implications of digitalization. comparative studies: comparing research studies in digitalization in iraq with other developing economies will place the study in a wide perspective by describing how the emerging markets face various challenges uniquely and in common. conclusion this study has shown the significant influence of ecommerce, digital marketing, and digitalization on the economic growth of iraq. the research underpins the linkages of digitalization with economic indicators, depicting that these digital tools are relatively important in promoting economic development in developing countries. in all, improving the country's digital infrastructure, promoting electronic commerce, and increasing digital marketing can spur innovations, competitiveness, and reach new markets, which then contribute to economic growth in iraq. for these actions to be realistic and happen, there would need to be long-term investing in digital literacy, enabling policies, and a secure atmosphere for online transitions. these insights provide a useful foundation for policymakers and business leaders seeking to leverage digitalization in pursuit of sustainable economic development in iraq. references ahi, a. a., sinkovics, n., & sinkovics, r. r. 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(2023). building a strong brand: marketing strategy to increase brand awareness and consumer loyalty. neo journal of economy and social humanities, 1(4), 280-284. doi: https://doi. org/10.56403/nejesh.v1i4.79 https://wdr2021.worldbank.org/ http://doi.org/10.4324/9781003344414-8 https://doi.org/10.56403/nejesh.v1i4.79 https://doi.org/10.56403/nejesh.v1i4.79 agbioforum, 27(1): 58-67. ©2025 agbioforum thijeel et al — ifrs adoption and credit rating in iraqi banks: the mediating role of governance and implications for agricultural... ifrs adoption and credit rating in iraqi banks: the mediating role of governance and implications for agricultural finance ali mohammed thijeel post graduate institute for accounting & financial studies, university of baghdad, iraq. orcid id: https://orcid.org/0009-0001-0999-8642 email: asst.prof.ali@pgiafs.uobaghdad.edu.iq hakeem hammood flayyih al-fandawi* post graduate institute for accounting & financial studies, university of baghdad, iraq. orcid id: https://orcid.org/0000-0003-0615-0854 email: hakeem.hmood@coadec.uobaghdad.edu.iq ghazi maan faisal post graduate institute for accounting & financial studies, university of baghdad, iraq. orcid id: https://orcid.org/0009-0002-9338-1713 email: ghazi.maan@uobaghdad.edu.iq this research originated from the recognition that expected credit losses place substantial emphasis on credit rating (cr) when assessing loan loss provisions. this emphasis arises due to the pronounced influence of increased provisions in contrast to the relatively diminished effect on non-performing loans under the international financial reporting standards (ifrs). accordingly, the study sought to explore the mediating function of corporate governance mechanisms (cgms) in the relationship between ifrs implementation and the cr of iraqi banks listed on the iraq stock exchange. to achieve this objective, the research employed structural equation modelling to analyse the intermediary role of cgms within the ifrs–cr nexus. the corporate governance framework was assessed using three specific mechanisms: board size (bs), female representation on the board (sex), and the percentage of major shareholding (msp). for the measurement of cr, the study adopted the camels model as a proxy. the sample consisted of ten banks listed on the iraq stock exchange over the period from 2013 to 2022. the study produced several notable findings. one key result indicated considerable variation in the degree of compliance with ifrs across iraqi banks. furthermore, it was established that both bs and msp exert a significant influence on cr. however, the analysis revealed that the three selected cgms did not serve as mediators in the relationship between ifrs and cr. nonetheless, a marginal indication was observed suggesting that major shareholder ownership might exert some influence on the dynamic between ifrs application and cr. these findings have important policy implications for the agricultural finance sector, suggesting that improvements in the cr of rural banks could be achieved through the adoption of ifrs and the enhancement of banking governance structures. such reforms may, in turn, facilitate greater access to credit for agricultural stakeholders. keywords: ifrs, credit rating, corporate governance, agricultural finance, rural banking, agricultural credit, financial reform, iraq. introduction since the global financial crisis of 2008, the international economy has endured a period of significant instability, primarily attributed to rising levels of bad debt and diminishing financial confidence. these issues have notably impacted economies in the united states and europe (georgieva, 2023; wahidin, akimov, & roca, 2021). financial markets have been plagued by elevated credit risk, which has influenced nearly all participants involved in financial transactions (o'hara & zhou, 2025). the escalating uncertainty surrounding debt has underscored threats to the stability of financial systems, extending even to governmental entities. consequently, the reliability of accounting information used to assess the creditworthiness of market participants has become a major area of concern, overshadowing traditional focus areas such as market and trading risks. in many developing countries, including iraq, limited access to finance within the agricultural finance sector (afs) remains a persistent issue. agri-enterprises and smallholder farmers often encounter challenges in securing formal credit due to a lack of collateral, high perceived risk, and inadequate rural banking infrastructure (mehedi, rahman, & jalaludin, 2020). these financing limitations restrict investments in productivity-enhancing technologies, sustainable agricultural practices, and integration into broader markets, thereby stifling rural economic development. at the national level, empirical research has highlighted the influence of cgms on investment flows and agricultural credit by signalling institutional strength and financial accountability (agyemang et al., 2020). poorly governed rural financial institutions frequently lack the credibility necessary to attract either domestic or international funding. therefore, strengthening cgms—particularly in areas of transparency and oversight— can play a critical role in improving the availability of agricultural lending (attridge, chen, & mbate, 2021). against this backdrop, financial reforms, including the adoption of ifrs and the enforcement of sound cgms, are increasingly viewed as essential enablers of financial access for underserved economic sectors, including agriculture. ifrs adoption has facilitated the harmonisation of accounting standards and enhanced the quality of financial reporting, rendering financial statements more reliable and reducing information asymmetry between borrowers and lenders (singh & newberry, 2008). in iraq, where the rural banking sector remains underdeveloped, compliance with ifrs is expected to enhance credit risk assessment and strengthen trust in financial institutions (shoman, 2023). moreover, effective cgms—such as independent board structures, robust disclosure standards, and ownership transparency— can mitigate agency conflicts and promote more efficient capital allocation (monks & minow, 2011). experiences from other developing regions, including jordan and parts of https://orcid.org/0009-0001-0999-8642 mailto:asst.prof.ali@pgiafs.uobaghdad.edu.iq https://orcid.org/0000-0003-0615-0854 mailto:hakeem.hmood@coadec.uobaghdad.edu.iq https://orcid.org/0009-0002-9338-1713 mailto:ghazi.maan@uobaghdad.edu.iq agbioforum, 27(1), 2025 | 59 thijeel et al — ifrs adoption and credit rating in iraqi banks: the mediating role of governance and implications for agricultural... africa, have demonstrated that legal and governance reforms positively influence financial performance and investment attractiveness (attridge et al., 2021; haddad, sbeiti, & qasim, 2017). in this context, the implementation of ifrs and improved cgms within iraqi banks has the potential to strengthen cr, thereby narrowing the financial gap within the afs. investors have increasingly turned to credit instruments due to their perceived riskiness compared to other asset classes (griffith-jones & naqvi, 2021; wisnu putra & eurelia wayan, 2023). accordingly, monitoring cr and counterparty risk has become a priority across many markets, with a focus on ensuring that actual credit risks are accurately reflected in both trading and banking books, as well as in financial statements. prior to the introduction of ifrs 9 in 2014, cr frameworks were primarily guided by the basel capital accord and internal economic capital models for regulatory capital estimation. many institutions employed application scorecards to assess client creditworthiness in alignment with their respective risk appetites. although both ifrs and basel iii—particularly the internal ratings-based approach (irba)—are grounded in gaap principles, they provide distinct methodologies. notably, while irba imposes minimum requirements on rating models, such obligations are absent under ifrs 9 (turlea, 2021). over the last decade, ifrs has undergone substantial revisions in domains such as fair value accounting, financial instruments, leasing, and revenue recognition. these revisions have introduced a greater reliance on professional judgement and estimations, thereby increasing the complexity of financial reporting tasks for accountants and auditors. ifrs now necessitates the evaluation of counterparty cr in various contexts, such as derivative adjustments under ifrs 13 and expected credit loss provisions under ifrs 9 (delgadovaquero & morales-díaz, 2019). cr reflects an entity’s ability to meet its financial obligations in full and on time (zhen & zhou, 2025). when an entity applies for a loan, lenders typically assess its credit history to determine the likelihood of default. to address this, companies are expected to implement mechanisms that limit default risks. cgms may offer a viable solution in this regard, as they facilitate a structured relationship between management and shareholders (alkhawaldeh et al., 2021). interest in cgms intensified following the corporate collapses in the early 2000s and was further amplified by the 2008 financial crisis (moussa, 2019). nonetheless, prior research has yielded mixed findings regarding the effect of cgms on credit risk within banking institutions. in contrast, limited studies have examined the implications of cr variations on shareholder wealth (aroul & rodriguez, 2024). cr serves as a vital indicator of financial health, evaluated by rating agencies using firm-specific characteristics alongside professional judgement and expertise (kaur & dey, 2025). the above discussion highlights a notable gap in the understanding of the relationship between ifrs adoption and cr. under certain conditions, such as earnings management, cr can be artificially influenced by manipulating financial figures, even when ifrs is applied. since cgms are recognised for their capacity to constrain earnings management practices (biswas et al., 2022; fan, radhakrishnan, & zhang, 2021; nguyen, kim, & ali, 2024), this study investigates the following: does ifrs adoption lead to improvements in cr? furthermore, do cgms mediate the relationship between ifrs and cr enhancement? the significance of this research lies in examining the mediating function of cgms in reducing the risk of financial misstatement under ifrs, thereby contributing to the enhancement of cr among iraqi banks listed on the ise. the paper is structured as follows: the second section reviews relevant literature and hypothesis development, the third outlines the research methodology, the fourth presents the results and discussion, and the final section concludes the study. literature review governance, ifrs, and agricultural finance the implementation of ifrs has been recognised as a transformative step towards improving the transparency and comparability of financial statements, particularly for institutions seeking access to international finance. singh & newberry (2008) highlight the relevance of ifrs in developing economies, noting its potential to facilitate crossborder investment and reinforce financial discipline. in iraq’s post-conflict financial setting, shoman (2023) demonstrates that ifrs compliance enhances the credibility of reporting and harmonises banking operations with international practices. these developments have important implications for rural and agricultural banking, suggesting that standardised and reliable financial reporting may alleviate perceived lending risks among institutional investors and donors. furthermore, evidence from jordan shows that reforms in accounting legislation and the application of governance codes enhance disclosure quality and promote market efficiency (haddad et al., 2017). with the adoption of ifrs by rural banks, improved reporting may contribute to stronger cr through reduced information asymmetry, thereby facilitating increased credit availability within the afs. based on this reasoning, the following hypothesis is put forward; h1: the effect of the adoption of ifrs on cr of iraqi banks is positive and significant. robust corporate governance is fundamental to institutional resilience and effective financial intermediation in developing economies, particularly within strategic sectors such as agriculture. governance structures characterised by board independence, transparent disclosures, and shareholder accountability are widely recognised for their capacity to enhance institutional reputation and reduce perceived risk (monks & minow, 2011). agyemang et al. (2020) underscore the significance of national governance capacity as a determinant of development capital inflows, particularly in sectors vulnerable to elevated credit risk, such as agriculture. their study, focusing on african countries, demonstrates that well-functioning governance frameworks at the national level can mitigate investor risk perceptions, thereby increasing the likelihood of attracting foreign direct investment (fdi). this is especially relevant in the afs, which is often deemed highrisk due to factors such as climatic variability, price agbioforum, 27(1), 2025 | 60 thijeel et al — ifrs adoption and credit rating in iraqi banks: the mediating role of governance and implications for agricultural... fluctuations, and inadequate infrastructure. similarly, attridge et al. (2021) find that the governance quality of national development banks directly influences their ability to channel long-term finance to underserved sectors, including agriculture. against this backdrop, strengthening cgms in iraqi banks—many of which serve rural and afs clients— may significantly reduce perceived cr and facilitate increased capital flows toward agricultural lending. based on this understanding, the following hypothesis is proposed; h2: cr of iraqi banks is positively and significantly affected by cgms. mehedi et al. (2020) provide empirical support for the argument that strong governance structures and corporate transparency significantly enhance the provision of agricultural credit in developing economies such as bangladesh. their analysis highlights several governance attributes—including board independence, board size, and ownership concentration—as critical determinants of financial institutions’ capacity to extend credit to the afs. these findings suggest a synergistic relationship wherein effective cgms, when reinforced by financial reporting under ifrs, contribute to improved risk perception and institutional credibility. such an integrated framework is particularly relevant to iraq, where agricultural financing remains markedly inadequate. while both cgms and ifrs independently influence cr, their combined effect may be more substantial, especially in contexts where governance functions as a mediating mechanism. therefore, the implementation of these frameworks within the iraqi rural banking sector may facilitate more effective capital allocation to the afs and support broader financial system efficiency. based on this rationale, the following mediating hypothesis is proposed; h3: the effect of the adoption of ifrs on cr of iraqi banks is mediated by cgms. empirical evidence on ifrs and credit rating a considerable body of empirical research has examined the influence of ifrs adoption on cr and risk performance. bhat, callen, & segal (2014), in a comparative study of 211 firms across 17 countries, found that while ifrs adoption improved financial transparency, it did not result in substantive changes in credit risk indicators, leverage, or profitability. their findings also underscored the importance of contextual variables, such as institutional enforcement quality, in shaping the effectiveness of ifrs implementation. this context-dependent interpretation is echoed by daskalopoulos et al. (2016), who noted that cr agencies in more developed economies tend to interpret ifrs compliance as a positive signal of a firm's commitment to transparency and sound governance, particularly in environments with weaker institutional frameworks. lejard, paget-blanc, & casta (2021) observed that ifrs 9 introduced greater variability in provisioning practices across banks, reflecting a paradigm shift in the measurement and management of credit risk. this evolution is particularly pertinent to the afs, where asset valuation and provisioning may be less transparent due to seasonal and market-driven uncertainties. similarly, brito & júdice (2023) concluded that the expected credit loss model under ifrs 9 supports the development of more resilient and lower-risk credit portfolios compared to prior standards such as ias 39. their findings suggest that banks adhering to ifrs are better positioned to detect and quantify credit risk at earlier stages. further, ferreira, barros, & pimentel (2024) demonstrated that the adoption of ifrs significantly enhances the explanatory capacity of financial disclosures concerning cr, particularly when accompanied by strong cgms. this interaction effect highlights the necessity of integrating ifrs adoption with governance reforms to reinforce institutional creditworthiness. supporting this view, bertoni, candio, & pediroda (2024) assessed the effects of earnings management and voluntary ifrs adoption on cr in the italian context. their study revealed that, although earnings manipulation temporarily inflated cr, voluntary ifrs adoption negatively affected ratings due to reduced opportunities for financial misrepresentation. these findings reinforce the need for robust cgms to ensure that ifrs-based transparency is substantive rather than superficial. lastly, jakubik & teleu (2025) assessed the application of ifrs 9 under crisis conditions, such as the covid-19 pandemic, and concluded that banks adhering to ifrs demonstrated more strategic and resilient approaches to risk management. collectively, this evidence affirms the potential of ifrs, particularly when supported by strong cgms, to enhance the credibility and resilience of credit systems. corporate governance mechanisms and credit rating the empirical findings concerning the relationship between cgms and cr remain largely inconclusive, often shaped by contextual variables such as the strength of regulatory frameworks, levels of institutional maturity, and the degree of market transparency. bhattacharya & sharma (2019), examining 122 indian firms, concluded that while environmental and social dimensions of esg performance exhibited a significant positive association with cr, the governance component, although positively related, was statistically insignificant. their analysis also revealed potential reverse causality, where firms with superior cr tended to disclose more extensively on esg, thereby complicating causal inference. in the united states, fernando, li, & hou (2020) studied defaulting firms and found that weak governance structures—specifically concentrated ownership and ineffective board configurations substantially elevated default risk. this insight is particularly pertinent to agricultural banks in iraq, where ownership structures are frequently characterised by familial control. similarly, ko, lee, & anandarajan (2019) reported that robust cgms mitigate operational risks and enhance institutional performance, attributing cr stability to governance attributes such as board composition, foreign shareholding, and separation of roles between ceo and board chair. moussa (2019), focusing on tunisian banks, identified board size and gender diversity as influential determinants of credit quality. larger boards were linked to higher credit risk, whereas diverse boards with distinct role assignments showed stronger risk oversight. agbioforum, 27(1), 2025 | 61 thijeel et al — ifrs adoption and credit rating in iraqi banks: the mediating role of governance and implications for agricultural... table 1: summary of studies on relationship between ifrs and on credit rating. study area of focus region / context key findings relevance to hypotheses (singh & newberry, 2008) ifrs implementation in developing nations developing countries the implementation of ifrs promotes financial transparency and mitigates information asymmetry within reporting systems. supports h1 (bhat et al., 2014) ifrs & credit risk global (17 countries) while ifrs adoption enhances the quality of financial information, its influence on credit risk assessments is not consistently evident. supports h1 (daskalopoulos et al., 2016) ifrs & sovereign credit ratings advanced economies ifrs adoption is favourably perceived by credit rating agencies. supports h1 (lejard et al., 2021) ifrs 9 & provisioning practices european banks ifrs 9 introduces greater variability in bank provisioning, thereby affecting comparability across institutions. supports h1 (brito & júdice, 2023) ifrs 9 & credit portfolio quality european context the expected credit loss model under ifrs 9 enhances the quality of credit portfolios. supports h1 (bertoni et al., 2024) earnings management vs. ifrs adoption italy earnings management may temporarily enhance cr, while ifrs reduces artificially inflated earnings. supports h1 (jakubik & teleu, 2025) ifrs 9 during financial crises malta ifrs 9 serves a critical function in assessing credit risk during financial crises. supports h1 (haddad et al., 2017) accounting law & governance codes jordan governance codes and accounting legislation improve disclosure standards and market confidence. supports h1, h2 (shoman, 2023) ifrs & governance practices iraq ifrs adoption strengthens governance practices and enhances reporting quality in iraqi firms. supports h1, h2 (ferreira et al., 2024) ifrs & credit rating informativeness 566 firms, 36 countries ifrs adoption improves the explanatory power of financial reports used in credit rating assessments. supports h1, h2 (bhattacharya & sharma, 2019) esg disclosures & credit rating india environmental and social disclosures exert a greater influence on cr than governance indicators. supports h2 (agyemang et al., 2020) country-level governance & fdi africa strong national governance frameworks attract investment in sensitive sectors such as agriculture. supports h2 (attridge et al., 2021) governance in development finance africa robust governance in national banks supports the provision of long-term finance to underserved sectors. supports h2 (monks & minow, 2011) corporate governance fundamentals global sound governance practices enhance transparency, credibility, and investor confidence. supports h2 (fernando et al., 2020) weak governance & default risk usa weak governance is associated with elevated default risk, particularly during periods of financial distress. supports h2 (ko et al., 2019) governance & operational risk global effective governance mechanisms reduce operational losses and improve credit performance. supports h2 (moussa, 2019) board characteristics & credit risk tunisia board size and gender diversity are associated with variations in credit quality. supports h2 (lin et al., 2020) governance + csr → credit rating taiwan corporate governance and csr initiatives jointly contribute to improved credit ratings. supports h2 (driss et al., 2021) institutional ownership & cr 57 countries long-term institutional ownership enhances cr, particularly in environments with weak governance. supports h2 (bhandari & golden, 2021) ceo ideology & credit rating usa ceo political ideology influences cr outcomes, especially under weak governance structures. supports h2 (mili & alaali, 2023) governance & credit rating gcc countries board structure and gender diversity have a positive impact on cr. supports h2 (aroul & rodriguez, 2024) market reactions to cr changes usa (reits) strong governance mitigates abnormal market reactions following credit downgrades. supports h2 (kaur & dey, 2025) board structure & creditworthiness india audit committee presence and board independence enhance cr, while insider ownership has a weakening effect. supports h2 (mehedi et al., 2020) governance & agricultural credit bangladesh effective governance increases the availability of credit for agricultural purposes. supports h2, h3 (li et al., 2022) esg, transparency & credit rating china transparency plays a mediating role in the relationship between esg practices and credit ratings. supports h2, h3 (ben saad et al., 2024) csr, governance & cr france cgms serve as mediating variables in the relationship between csr and cr. supports h3 agbioforum, 27(1), 2025 | 62 thijeel et al — ifrs adoption and credit rating in iraqi banks: the mediating role of governance and implications for agricultural... lin et al. (2020), in their taiwanese study, examined the interaction between cgms and corporate social responsibility in forming cr and found that well-governed, larger firms tended to attain better csr performance, which enhanced their credit evaluations. additionally, driss et al. (2021) provided international evidence that long-term institutional ownership positively affects cr, particularly in jurisdictions with weaker governance institutions. from a behavioural standpoint, bhandari & golden (2021) explored how ceo ideology influences cr, revealing that conservative leadership in the united states correlates with improved ratings, particularly in firms with deficient governance. in china, li et al. (2022) demonstrated that transparency mediates the impact of esg disclosures on creditworthiness, thereby reinforcing the critical role of information clarity. mili & alaali (2023) found that board composition, gender representation, and institutional oversight enhance cr within gulf cooperation council financial institutions, while frequent board meetings and ownership concentration were negatively associated with rating outcomes. further supporting the indirect role of cgms, ben saad, laouiti, & ajina (2024) observed in french firms that csr performance positively influences cr, with cgms acting as a mediating mechanism. using a market reaction lens, aroul & rodriguez (2024) discovered that in real estate investment trusts (reits), cr downgrades triggered weaker investor responses when cgms were strong, indicating that robust governance fosters credibility and softens adverse financial signals. finally, kaur & dey (2025) analysed 131 indian firms and concluded that institutional ownership, independent audit committees, and diverse boards contributed positively to cr, whereas insider ownership and ceo duality exerted detrimental effects. collectively, this literature affirms that both ifrs and cgms are conducive to improving cr, although the direction and strength of these effects depend on institutional context, regulatory enforcement, and the presence of complementary reforms. in iraq, where financial infrastructure remains underdeveloped and the afs is strategically vital yet underserved, coordinated efforts to implement ifrs alongside cgms may yield substantial improvements in credit accessibility, particularly for rural and agricultural borrowers. methodology sample a sample comprising ten banks listed on the ise between 2013 and 2022 was selected for this study. the selection process focused on identifying the highest-rated iraqi banks, which demonstrated greater adherence to the corporate governance principles set forth by the central bank of iraq. the sample period encompasses both the preand post-ifrs adoption phases, thereby enabling a comparative assessment of reporting practices and their potential implications. to assess the adequacy of the selected sample size, a statistical power analysis was conducted, as detailed in table 2, to ensure the sufficiency of observations for the intended analyses. moreover, table 2 indicates that the minimum number of observations for the first model was 76, accounting for the impact of the control variable on the examined relationship. it was observed that the number of observations exceeded the minimum threshold required by the statistical model, with the actual value reaching 0.000. in the case of the second model, the lowest number of observations was recorded as 97, similarly considering the influence of the control variable. once again, the number of observations surpassed the acceptable minimum specified by the statistical model. accordingly, the statistical power results confirm the suitability of the data for analysis, as the sample size and variable structure were appropriate for each model. an expected effect size of 15 percent and a significance level of 5 percent were adopted, which are generally regarded as acceptable parameters within financial and administrative research. table 2: statistical power test. model (2) model (1) effect size 0.15 anticipated effect size (f2) 6 3 number of predictors 5% probability level 97 76 minimum required sample size variable measurement table 3 presents the measurement approach employed for the variables utilised in the present study. the analysis incorporated three variables, each operationalised based on established indicators and relevant financial governance criteria. table 3: variable measurement method. variables scale description dependent variables cr measuring by camels index. independent variable ifrs ifrs a dummy variable measures it; it is given 1 if the bank applies ifrs and 0 otherwise . mediator variable cgms cgm1 it is measured by the number of the board for each bank; it should have seven or more members. cgm2 it is measured using the ratio of sex to the number of bz. cgm3 it is measured using the percentage of ownership of the largest shareholder. study model and framework based on the defined study variables, figure 1 illustrates the research model and the directional nature of the interplay, which was formulated in line with the hypotheses derived from the conceptual foundations established in prior research. figure 1: study model. credit rating corporate governance ifrs agbioforum, 27(1), 2025 | 63 thijeel et al — ifrs adoption and credit rating in iraqi banks: the mediating role of governance and implications for agricultural... mathematical model to fulfil the study's objective, which is to assess the overall influence of ifrs on cr within the framework of an "enhanced mediator" model, wherein cgms function as a mediating factor, the research model is structured around three equations. equation (1) presents the measurement of cr based on the camels framework. 𝐶𝑅it = 𝜕1(𝐶𝐴) + 𝜕2(𝐴𝑄) + 𝜕3(𝑀𝑄) + 𝜕4(𝐸) + 𝜕5(𝐿) + 𝜕6(𝑆𝑀𝑅). (1) where: 𝐶𝑅it represents the cr, where c denotes the capital adequacy ratio, a represents asset quality, m refers to management quality, e indicates earnings, l reflects liquidity, and s signifies sensitivity to market risks. the symbol ∂ corresponds to the relative weights assigned to each of these elements based on their respective importance. equation (2) assesses the overall impact of ifrs on cr. 𝐶𝑅it = 𝜕0 + 𝜕1𝐼𝐹𝑅𝑆 + ϵt … . (2) equation (3) assesses the mediating role of cgms in the relationship between ifrs and cr. 𝐶𝑅it = 𝜕0 + 𝜕1𝐼𝐹𝑅𝑆 + 𝜕2 ∑ cgit c c c=3 + ϵt … . (3) where: β2 ∑ cgit cc c=5 represents the vector of cgms that includes three mechanisms: bs, sex, and the msp. results descriptive statistics table 4 provides the descriptive statistics for the variables under investigation, namely cr, ifrs, and cgms (msp, sex, and bs). the mean cr index is approximately 0.548, with a median of 0.462, suggesting that half of the sampled banks recorded cr values below 0.462 and the remainder above. this finding implies that the majority of banks in the sample fall short of basel regulatory requirements, which set a minimum cr threshold of 8%. the cr values range from a minimum of 0.205 to a maximum of 1.943, indicating substantial heterogeneity in financial soundness across the institutions studied. the standard deviation (stdev) of 0.29 denotes a moderate level of dispersion, while a kurtosis value of 7.1 signifies a leptokurtic distribution, indicating the presence of extreme outliers. the skewness coefficient of 2.334 reveals a right-skewed distribution, whereby a minority of banks exhibit disproportionately high cr values. table 4: descriptive statistics. variables mean median min max standard deviation (stdev) excess kurtosis skewness cr 0.548 0.462 0.205 1.943 0.29 7.1 2.334 ifrs 0.5 1 0 1 0.5 -2.041 0 msp 0.194 0.1 0.062 0.79 0.195 2.053 1.891 sex 0.032 0 0 0.333 0.069 3.861 2.111 bz 6.58 7 4 9 0.982 0.879 -0.807 with regard to ifrs, the average value is 0.5, reflecting that approximately half of the banks had adopted ifrs during the observed period. this result aligns with the sampling design, which includes both preand post-adoption data. the median value of 1 suggests that a majority of institutions had transitioned to ifrs compliance. the variable ranges from 0 (non-adoption) to 1 (full adoption), with a stdev of 0.5, indicating notable variance in the level of implementation across banks. the negative kurtosis of -2.041 suggests a platykurtic distribution, meaning the data are more dispersed around the mean than in a normal distribution. the zeroskewness value implies a symmetrical distribution of ifrs adoption. as for msp, the mean indicates that the largest shareholder, on average, holds 19.4% of the bank’s equity. the median of 0.1 implies that in at least half of the banks, the principal shareholder owns less than 10% of the shares. the range extends from 6.2% to 79%, pointing to considerable variability in ownership concentration. the stdev of 0.195 indicates moderate dispersion. a kurtosis of 2.053 suggests a mesokurtic distribution with a concentration around the centre, whereas a skewness of 1.891 reveals a pronounced right skew, implying that a few banks have significantly high ownership concentrations. in terms of sex representation on boards, the mean value is 0.032, while the median is 0, indicating that most banks lack female board members. the minimum is 0 and the maximum is 0.333, showing that in some cases, up to 33.3% of the board comprises women. this indicates that 66.7% of the sample does not comply with the central bank of iraq’s regulation mandating the presence of at least one female board member. the stdev of 0.069 reflects minimal variation. a kurtosis of 3.861 signifies a leptokurtic distribution concentrated around the lower end, and a skewness of 2.111 indicates a positively skewed distribution, with a small number of banks having relatively higher female representation. finally, with respect to bs, the mean is 6.58 and the median is 7, denoting that the prevailing board size aligns with regulatory expectations. the observed range spans from 4 to 9 board members. a stdev of 0.982 reveals limited variability, suggesting compliance with central bank guidance recommending a board size not exceeding seven members. the kurtosis value of 0.879 indicates a distribution approximating normality, while a skewness of -0.807 shows a slight negative skew, implying that some banks maintain larger-than-average boards. given the reliance on secondary data sourced from publicly available records on the iraq stock exchange (ise), deviations from normality are not considered critical in this context. model validity test the findings outlined in table 5 detail the results of the model’s validity and reliability evaluations, based on structural validity measures obtained through structural equation modelling indicators. the results demonstrate that the outer loadings for all variables were recorded at 1.000, indicating a perfect correlation between the observed indicators and the latent constructs they are designed to measure. the ca coefficient, commonly employed to assess internal consistency and model reliability, is generally regarded as acceptable when exceeding 0.7, and very good agbioforum, 27(1), 2025 | 64 thijeel et al — ifrs adoption and credit rating in iraqi banks: the mediating role of governance and implications for agricultural... when above 0.8. in this case, all ca values reached 1.000, suggesting complete consistency among the items associated with each construct and an absence of measurement error. while this implies exceptionally high reliability, it may also indicate possible overestimation or an underlying issue in the data processing methodology. table 5: model validity test results. variables outer loadings cronbach's alpha (ca) rho_a composite reliability (cr) average variance extracted (ave) cr 1.000 1.000 1.000 1.000 1.000 ifrs 1.000 1.000 1.000 1.000 1.000 msp 1.000 1.000 1.000 1.000 1.000 sex 1.000 1.000 1.000 z1.000 1.000 bz 1.000 1.000 1.000 1.000 1.000 similarly, the rho_a coefficient, which serves as a more robust alternative to cronbach’s alpha, also yielded values of 1.000, reinforcing the conclusion of perfect consistency. the cr coefficient, which evaluates the consistency of each latent construct with its associated indicators, likewise returned values of 1.000, further suggesting no observable measurement error across variables—an outcome rarely encountered in empirical data. in addition, the ave, which assesses the proportion of variance captured by each latent construct relative to the variance due to measurement error, reported values of 1.000 for all constructs. this implies that each latent variable accounts for 100% of the variance in its observed indicators, a result that is theoretically ideal but rarely realised in practice. overall, while these results denote perfect reliability and validity for the model, such outcomes are atypical in empirical research and may warrant further scrutiny. figure 2 illustrates the structural model employed to evaluate the model’s validity. figure 2: structural model for testing model validity. inferential statistics and hypothesis testing inferential statistics for direct effects table 6 displays the results of the inferential statistical analysis regarding the direct effects among the study variables. the analysis reveals a positive path coefficient for the relationship between bs and cr, suggesting that an increase in bs is linked to an improvement in cr. this relationship is statistically significant, as indicated by a tvalue of 3.283 and a p-value of 0.001, which falls below the 0.05 significance level. these findings suggest that larger bs is positively associated with higher cr assessments. in relation to the influence of ifrs on bs, the results indicate a marginal positive association; however, this effect lacks statistical significance. the t-value of 1.035 and p-value of 0.301 suggest that ifrs does not meaningfully affect bs. this could imply that decisions regarding board composition are influenced by internal governance practices rather than compliance with ifrs. the direct effect of ifrs on cr was found to be extremely weak and statistically insignificant, with a t-value of 0.435 and a pvalue of 0.664. this suggests that the adoption of ifrs alone does not exert a measurable impact on cr among the banks studied. table 6: inferential statistics for direct effects. path coefficients original sample (o) stdev t statistics p values bs -> cr 0.206 0.063 3.283 0.001 ifrs -> bs 0.102 0.098 1.035 0.301 ifrs -> cr 0.046 0.106 0.435 0.664 ifrs -> msp 0.228 0.084 2.730 0.007 ifrs -> sex -0.033 0.098 0.339 0.735 msp -> cr -0.185 0.075 2.465 0.014 sex -> cr -0.083 0.071 1.178 0.239 on the other hand, ifrs demonstrated a moderately positive and statistically significant relationship with msp. the path coefficient, supported by a t-value of 2.730 and a p-value of 0.007, indicates that ifrs adoption may be associated with an increase in msp. this result could reflect improved transparency or regulatory confidence attracting more concentrated ownership. regarding the interplay between ifrs and sex, the path coefficient indicated a very weak and negative effect that was not statistically significant. with a t-value of 0.339 and a pvalue of 0.735, the findings suggest that ifrs has no observable influence on sex. this may imply that decisions regarding female board participation are shaped by organisational or cultural factors rather than financial reporting standards. the relationship between msp and cr revealed a moderately negative and statistically significant effect. the t-value of 2.465 and a p-value of 0.014 indicate that higher msp is associated with lower cr. this may be due to the concentrated influence of major shareholders potentially undermining effective governance, thereby diminishing creditworthiness. lastly, the path from sex to cr showed a very weak negative relationship that was statistically insignificant. the t-value of 1.178 and p-value of 0.239 suggest that sex does not have a direct or significant impact on cr. this outcome may reflect the limited presence or influence of female members in governance structures across the sample. inferential statistics for indirect effects table 7 presents the results related to the indirect effects, aimed at evaluating whether cgms (bs, msp, and sex) mediate the relationship between ifrs adoption and cr. the findings indicate that the indirect effect along the path agbioforum, 27(1), 2025 | 65 thijeel et al — ifrs adoption and credit rating in iraqi banks: the mediating role of governance and implications for agricultural... (ifrs → bs → cr) is minimal and lacks statistical significance. the impact coefficient was 0.021, with a tvalue of 0.908, which is below the acceptable threshold for significance. additionally, the p-value of 0.364 exceeds the 0.05 criterion, confirming the absence of a significant mediating role for bs in the relationship between ifrs and cr. these results suggest that changes in bs do not mediate the influence of ifrs adoption on cr, indicating that bs does not serve as an effective intermediary in this context. table 7: inferential statistics for indirect effects. specific indirect effects original sample (o) standard deviation t statistics p values ifrs -> bs -> cr 0.021 0.023 0.908 0.364 ifrs -> msp -> cr -0.042 0.025 1.691 0.091 ifrs -> sex -> cr 0.003 0.011 0.248 0.804 with regard to the path (ifrs → msp → cr), the results imply that msp may act as a weak mediating factor between ifrs and cr. however, this effect fails to meet the criteria for statistical significance. the indirect effect was recorded at 0.042, indicating a slight negative influence, and the corresponding t-value was 1.691. while this suggests a possible effect, it lacks sufficient statistical confirmation. the p-value stood at 0.091, which, being greater than 0.05, denotes that the effect is not statistically validated, although it may carry some contextual relevance. these findings imply that a higher msp could diminish the influence of ifrs on cr, potentially due to the dominant role of concentrated ownership in shaping financial decisions in ways that may diverge from sound governance principles. for the path (ifrs → sex → cr), the analysis indicates that sex does not act as a mediator between ifrs and cr. the coefficient was merely 0.003, pointing to a minimal and effectively insignificant effect. the associated t-value of 0.248 and a pvalue of 0.804 provide further confirmation of the lack of statistical significance. these results suggest that the presence of women on boards neither amplifies nor diminishes the influence of ifrs on cr, indicating that gender composition is not a salient mediating factor in this context. figure 3 presents the structural equation model underpinning the study's conceptual framework. figure 3: structural equation modelling of the basic study model. conclusion the present study sought to examine the mediating influence of cgms in the relationship between ifrs and the cr of iraqi banks listed on the iraq stock exchange. the findings reveal notable variation among banks in terms of ifrs compliance, bs, ownership concentration, and the presence of sex on boards. certain variables, particularly sex and msp, were positively skewed, suggesting that a limited number of banks reported substantially higher values than the rest of the sample. the analysis indicates that cgms (bs, msp, and sex) do not serve as strong mediators in the association between ifrs and cr. nonetheless, there was a marginal indication that msp may exert some influence on this relationship, although it did not achieve statistical significance. in contrast, neither bs nor sex demonstrated any meaningful mediating role, suggesting that the influence of ifrs on cr is not contingent upon these factors. this outcome diverges from theoretical expectations that effective governance mechanisms contribute to enhanced cr. future research is encouraged to further explore the dynamics among cr, cgms, and ifrs, as the current findings suggest only limited intermediation by cgms. the observed weaknesses may be attributed to several limitations, notably the inclusion of both preand post-ifrs adoption periods, which were selected due to the limited availability of postadoption data. this approach, however, facilitated a comparative assessment of ifrs implementation and its interplay with governance structures and cr. it is recommended that subsequent investigations re-examine the model using alternative mediators such as audit quality, financial disclosure, or the strength of internal controls, as these elements may exert a more substantial influence on the relationship between ifrs and cr in the banking sector. implications of the study policy and development related implications this study has direct policy implications for reform initiatives that aim to enhance financial inclusion for the rural and agricultural sectors. in emerging markets such as iraq, agriculture tends to be credit-rationed owing to weak institutional capacity, weak disclosure practices in finance, and weak risk-assessment frameworks. the study presents evidence that ifrs implementation, together with enhancements in cgms—examined most extensively for bs, dispersion of ownership, and proportion represented by female directors—determines a bank's cr substantially. greater cr, in its own accord, enables access to cheaper capital for financial institutions, which can be deployed in strategic sectors such as agriculture. these insights support the formulation of regulatory reforms that mandate ifrs compliance and effective governance performance as prerequisites for both public and private financial institutions seeking to operate in rural credit markets. the findings should be integrated into broader financial sector development strategies, particularly those aligned with the sustainable development goals, such as sdg 2 (zero hunger) and sdg 8 (decent work and economic growth). it can be refined agbioforum, 27(1), 2025 | 66 thijeel et al — ifrs adoption and credit rating in iraqi banks: the mediating role of governance and implications for agricultural... through oversight agencies advancing governance-based models for risk assessment designed to minimize systemic lending biases toward smallholder farmers and agribusiness operations, thereby enhancing equitable credit access and fostering rural structural transformation. agribusiness related implications the significance of this research is particularly high for the agribusiness market, which tends to operate under conditions of high risk and has access to very limited formal-financing instruments. the study concludes that lenders showing good governance—characterized by diversity and board independence and strong transparency in reporting—have a greater tendency to adopt comprehensive risk-assessment models. this capacity is especially important when evaluating agribusiness loan applications, which often involve irregular cash flows, vulnerability to climatic shocks, and insufficiently documented collateral. a rural-based financial institution applying the expected credit loss methodology outlined in ifrs 9, supported by a transparent and accountable board, may be capable of effectively distinguishing between high and low-risk agricultural borrowers by assessing their historical performance and governance standards. such capability can reduce perceived credit risk, lower nonperforming loan ratios, and allow for more assertive expansion of rural lending portfolios. as 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ghaleb* department of management, college of business, king faisal university, al-ahsa 31982, saudi arabia. email: mghaleb@kfu.edu.sa nurbek normuradov department of digital economics, tashkent state university of economics, uzbekistan. email: n.normuradov@tsue.uz agricultural production becomes an integral factor for economic development and food security. therefore, the study investigated the effect of foreign aid and foreign agricultural aid on saudi arabia's agricultural production. researchers also tested the moderating effect of country governance. quantitative longitudinal data was collected from the world development indicators for the period of 2013 to 2024. the feasible generalized least squares (fgls) regression technique was used to address econometric concerns such as heteroskedasticity, autocorrelation, and cross-sectional dependence. for robustness of findings, panel-corrected standard errors (pcse) were also applied. from those regression models, fgls results were more appropriate. fgls results show the significant impact of total foreign aid and total agricultural aid on the agricultural production of saudi arabia. country governance also significantly moderates among total foreign aid, foreign agricultural aid, and agricultural production of saudi arabia. these findings highlighted that an effective governance structure improves the efficiency of aid utilization which is ensuring its alignment with national agricultural objectives. the research results highlighted that policymakers must focus on strengthening governance frameworks, enhancing aid allocation efficiency, and ensuring transparency in financial assistance programs to maximize the impact of foreign aid on agricultural production. private sector stakeholders can leverage foreign aid for technology adoption, infrastructure development, and market expansion. this study is the first to empirically examine the direct and moderating effects of foreign aid and foreign agricultural aid on agricultural production in saudi arabia. this study also contributes to both agricultural economics and governance literature which offers novel insights into how governance improves the foreign aid in the country. keywords: foreign aid, agricultural production, country governance, saudi arabia. introduction agricultural production is a crucial factor in food security and a country's sustainable economic development (guiné et al., 2021). this is the reason, national development initiatives often emphasize the security of food as a priority to increase domestic production to meet the needs of the population (godfray & garnett, 2014). agriculture production decreases due to waste resources and weak irrigation systems which encourage farmers to adopt alternative farming techniques such as hydroponics and vertical farming (nazir et al., 2024). when the country is facing the issue of water resources then agricultural production decreases which emphasizes focused food imports and limited arable land necessitating continuous innovation and financial support to fill the needs of the population (giller et al., 2021). to overcome these constraints, foreign aid has played an important role in strengthening agricultural capabilities, supporting infrastructure development, and ensuring food availability (norton, alwang, & masters, 2021). moreover, external investments and aid have helped develop agribusiness opportunities, allowing nations to reduce dependence on imported food products while promoting local agricultural sustainability (pretty, morison, & hine, 2003). based on the studies, it is essential to note that food production is influenced by foreign aid which makes it a central idea for the research. historically, foreign agricultural aid has become an integral component in increasing the agricultural sector because it increases the fund's facility for the farmers which leads to investments in modern farming techniques, sustainable irrigation methods, and technology transfer (islam, 2011). official development assistance (oda) directed towards agricultural projects has enabled the adoption of precision farming, hydroponics, and desalination technologies to support food production in arid conditions (salinasvelandia et al., 2022). such kind of advancement in technology helps to improve the usage of water efficiency which is helping the countries optimize limited freshwater resources for agricultural purposes (evans & sadler, 2008). in other words, foreign agricultural aid has also contributed to improving infrastructure in rural areas which is enabling farmers to access better transportation networks and market opportunities (shiferaw, hellin, & muricho, 2011). while agricultural aid has proven beneficial in many developing regions, its effectiveness depends on strategic implementation and alignment with national policies aimed at maximizing productivity and resource efficiency (alzahrani et al., 2023). if there is no proper planning then the foreign trade assistance benefits might be limited by inefficiencies in resource allocation and institutional bottlenecks. therefore, the study addressed the influence of foreign agricultural aid on agricultural production. along with the agricultural aid, total foreign aid also contributed significantly to agricultural sustainability mailto:mghaleb@kfu.edu.sa mailto:n.normuradov@tsue.uz agbioforum, 26(3), 2024 | 63 ghaleb et al — exploring the role of country governance in shaping key determinants of agricultural production: evidence... (trentinaglia, baldi, & peri, 2023). foreign aid improves investment opportunities in infrastructure, transportation networks, and water conservation systems which increases agricultural production through reducing the supply chain disruptions and enhancing market accessibility (tondel, d’alessandro, & dekeyser, 2022). investment in modern storage facilities always helps to reduce harvest losses and ensures that products reach to consumers is an optimal condition (kaur & watson, 2024). on the other hand, foreign aid also increases the opportunities for research and development which increases the innovations in sustainable farming practices, which is enabling countries to mitigate the challenges posed by harsh climates (fao, 2021). another study also highlighted that international partnerships through providing foreign aid in renewable energy projects, particularly in the development of solarpowered irrigation systems that reduce dependency on fossil fuel-based water extraction (athuman, 2023) could increase agricultural production. these studies highlighted that total foreign aid and total agricultural aid are important indicators of improving agricultural production and food security. therefore, the study addressed the influence of total foreign aid and agricultural aid on agricultural production. to improve foreign aid utilization and its enhancement, country governance played a key role which could lead to improved agricultural production. an effective country governance increases the transparency in the economies and leads to better utilization of foreign aid which ensures that aid is allocated efficiently and aligns with national objectives (newman et al., 2024). a strong governance structure has established strong measures to increase the effectiveness of aid utilization which consisted of streamlining bureaucratic processes and improving monitoring mechanisms for foreign-funded projects. many countries have established strong agricultural development funds that provide financial support to farmers and agribusinesses (dzakaklo, hlovor, & tandoh-offin, 2024). country governance through providing low-interest loans to their nations could facilitate investments in modern farming equipment, sustainable irrigation methods, and innovative food production techniques (jiang, 2023). furthermore, country governance could also help to create a public-private partnership and international collaborations have strengthened the ability to attract foreign investments and leverage technological advancements (poulton & macartney, 2012). some countries have also sought to diversify agricultural investments abroad, securing farmlands in regions with abundant water resources to ensure a stable food supply chain (woodhouse, 2013). on other the hand, an effective governance structure also creates surety that agricultural projects which are being supported through foreign aid are sustainable, environmentally responsible, and beneficial to long-term food security goals (luo et al., 2024). these previous studies emphasized that country governance is an integral component that increases the foreign aid in the country to increase agricultural production. therefore, the study focused on the interaction role of country governance among foreign aid, foreign agricultural aid, and agricultural production. the study concentrated on moderating the role of country governance among foreign aid, foreign agricultural aid, and agricultural production in the context of saudi arabia. various studies were conducted on foreign aid but those studies were mainly focused on economic growth perspectives (azam & feng, 2022; edwards, 2015; gebresilassie, legesse, & gebre, 2024; tefera & odhiambo, 2024). with the significance of foreign aid for agricultural production, still, limited studies have been on foreign aid and agricultural production, particularly in the context of saudi arabia (abbas et al., 2024; alabi, 2014; bhandari, 2024; naima, 2016; verter, 2017). therefore, to address these gaps, the study contributed literature in the context of saudi arabia. furthermore, extant literature also concentrated on the direct effect of foreign aid with limited concentration on country governance moderating role. in other words, the study also concentrated on exploring the relationship between foreign aid and governance (asongu & nwachukwu, 2016; bräutigam & knack, 2004) as well as the impact of governance on agricultural production (ariabod et al., 2019). with the relationship of these studies, a critical gap remains in understanding how country governance moderates. therefore, this study contributed to the literature on the moderating effect of country governance. lastly, extant literature tested the individual effect of foreign aid or foreign agricultural aid on agricultural production (abbas et al., 2024; mohamed, omar, & abdulle, 2024; pickson et al., 2025). however, these studies have limited literature on the influence of foreign total aid and foreign agricultural land in one model. therefore, this study contributed to filling the gaps in the total agricultural aid and foreign aid effect on the agricultural production in one model. analyzing the study objective in the context of saudi arabia has various valuable insights for policymakers. the findings could help in optimizing aid allocation, strengthening governance mechanisms, and enhancing the overall effectiveness of foreign assistance in fostering sustainable agricultural development. furthermore, the study could also highlight best practices and challenges in leveraging foreign aid which is providing a framework for future collaborations and policy interventions to achieve global food security and agricultural resilience. the study was further divided into four chapters. the second chapter was a literature review where both theoretical and empirical perspectives of previous studies were discussed. the third chapter explores research methods where the research design and research approach were discussed. the fourth chapter was the data analysis where panel data regression techniques were analyzed. the fifth chapter was related to the discussion of the study where each finding was supported by the relevant studies. literature review theoretical background agricultural production is an important pillar for the security of food and economic growth (guiné et al., 2021). it played an integral role in the creation of employment, and poverty alleviation (liu et al., 2021). with time, various advancements in the agricultural system through advanced technologies and better irrigation systems have contributed to increased productivity and efficiency. technological advancements such as genetically modified crops, precision agbioforum, 26(3), 2024 | 64 ghaleb et al — exploring the role of country governance in shaping key determinants of agricultural production: evidence... agriculture, and smart irrigation systems have significantly improved crop yields and resource efficiency (ahmad & dar, 2020). for increasing agricultural technologies, there is a need for mechanisms from outside sources to help smallscale farmers enhance their production in agriculture (williams et al., 2021). foreign aid improves investment opportunities in infrastructure, and water conservation systems which increase agricultural production by reducing the supply chain (tondel et al., 2022). the investment in modern cold storage facilities helps to minimize postharvest losses which ensures that food products reach consumers in optimal condition (williams et al., 2021). country governance played a key role in strengthening foreign aid to increase agricultural production (fuglie, 2023). a strong country governance structure increases the transparency in the utilization of foreign aid which ensures that aid is allocated efficiently and aligns with national objectives (toivola, 2023). a strong governance structure has been established (fuglie, 2023). various theories support the connection in foreign aid and agriculture production with the moderating effect of country governance. among the theories, structural growth theory highlights the significance of foreign aid, and structural growth theory is linked to economists (lewis, 1954; nurkse, 1953). this theory explains foreign aid helps agriculture grow by supporting modern techniques and investments, leading to economic transformation. the harrod-domar model originated by domar (1946) and harrod (1939) adds that higher investment rates drive growth, while the linear-stagesgrowth approach (rostow, 2013) highlights step-by-step progress in an economy. both models support the idea that foreign aid is important for shifting from traditional to modern agriculture. this transformation increases productivity and helps the overall economy grow. north (1990) originates institutional theory which highlights the relationship between governance and foreign aid. this theory emphasizes the role of governance structures, regulatory frameworks, and institutional quality in determining foreign aid effectiveness. this theory suggests that well-functioning institutions enhance foreign aid utilization in agriculture through ensuring transparency, reducing corruption, and aligning aid initiatives with national priorities (newman et al., 2024). based on the theories, researchers formulated the research framework below in figure 1. figure 1: theoretical framework. foreign aid and agricultural production: hypothesis development agricultural production is boosted by foreign aid, especially in those countries where people have low incomes (adan, 2023). it has been noticed in the extant literature that foreign aid provided to farmers increases their capacity to produce more agricultural crosses by improving their water system and irrigation systems (gollin, 2019). other authors also highlighted the key role of foreign aid in improving agricultural production through overcoming financial and technological barriers, which improves food security (alotaibi, 2023). in the same vein, sultana (2023) also found the significant role of foreign aid in increasing agricultural production. equally, kamguia et al. (2022) emphasized that corruption and misallocation of foreign aid in recipient nations frequently reduce the intended benefits of international agricultural assistance. similarly, adan (2023) also suggested that excessive dependence on foreign aid may reduce incentives for selfsufficiency which is leading to inefficiencies and stagnation in agricultural growth. they also emphasized the necessity of including more variables, such as institutional framework procedures or country governance, to guarantee that aid is used efficiently and benefits the agricultural sector in the long run. adan (2023) also investigated the increasing effect of foreign aid on agriculture production in developing nations. further, garbero & jäckering (2021) showed that specific foreign agricultural assistance raises food security and rural income levels. similarly, wehmeyer (2024) has shown that when supported by efficient governance practices, foreign agricultural aid results in long-term sustainable agricultural production. moreover, kirikkaleli et al. (2021) found the influence of foreign aid on agricultural growth is reliant upon policy coherence and institutional quality. according to other studies, nations with established infrastructure and policy frameworks are more likely to make better use of foreign aid, which results in long-term agricultural growth (niyonkuru, 2016). conversely, other studies contend that because of problems including misallocation of funds, corruption, and inconsistent policies, foreign aid may not necessarily result in better agricultural outcomes (dangi et al., 2021; osman, 2024; pickson et al., 2025). additionally, hussain (2016) discovered that foreign aid increase the agricultural prodcuauction. however, cherkaoui (2022) also highlighted the significant relationship between foreign agricultural aid on agricultural production. ibrahim ali hussien (2022) found the significant impact of agricultural production in more than one country. they also highlighted that foreign aid is an important factor for developing those nations that have scarce water resources, limited access to modern agriculture technologies, and struggling with resource constraints and inadequate infrastructure. this argument is further supported by the view of marei (2023) who highlighted that investments in rural roads and irrigation infrastructure, funded by foreign aid, substantially improve agricultural production by increasing market access and efficiency. similarly, ssozi, asongu, & amavilah (2019) discovered that foreign aid in agriculture contributes more to the adoption of the newest farming practices and seed varieties, which raises crop yields. moreover, abbas et al. (2024) aid can stimulate long-term agricultural growth that benefits both smallholder farmers and commercial agricultural firms provided it is distributed efficiently within a robust policy framework. however, effective governance and welltotal foreign aid foreign agricultural aid agricultural production country governance agbioforum, 26(3), 2024 | 65 ghaleb et al — exploring the role of country governance in shaping key determinants of agricultural production: evidence... designed rules are essential for ensuring that foreign agricultural aid is allocated to well-known agricultural initiatives rather than inefficient administrative processes (alotaibi, 2023). thus, its empirical results suggested that the moderating effect of governance structure on the relationship between agricultural production and foreign agricultural aid could be the subject of future research. in addition, vernooy (2022) found that while ensuring sustainable agricultural development, foreign agricultural aid increases crop diversification and the efficacy of climate adaptation techniques. furthermore, daly et al. (2020) believed that financial interventions like microfinance schemes that help smallholder farmers boost their output and lower production risks are also supported by foreign agricultural aid. contrariwise, other study claim that because of problems including misallocation of funds, corruption, and inconsistent policies, foreign aid does not necessarily result in increased agricultural production (osman, 2024). this aligns with the study of kamguia et al. (2022) where they found that foreign aid does not positively increase agricultural production. they highlighted the reason for declining production was due to weak governance structures in recipient countries. in the same vein, pickson et al. (2025) study also examined the influence of agricultural foreign aid on agricultural production and found that aid dependency, rather than investment in sustainable projects, led to stagnation in agricultural production. alternatively, cherkaoui (2022) argues that excessive foreign aid can weaken domestic institutions, reducing incentives for self-sufficiency and economic development. similarly, anderson (2023) demonstrated that certain kinds of food aids, especially inkind donations can disincentives local production and disrupt agricultural markets. these studies argued that countries' proper governance can increase foreign aid effectiveness for agricultural production. to address the previous gaps and keep in view the relationship, the following hypothesis formulated below, h1: foreign aid for agriculture increases agricultural production. h2: foreign aid significantly improves the agricultural production. country governance moderation extant studies in the previous section highlighted that foreign aid from both total and agricultural perspectives have inconsistent findings which highlights that there is a need for relationships in other contexts with moderating variables (arpaci-ayhan, 2023). for this purpose, effective country governance could be a potentially moderating variable in ensuring that foreign aid could tangible improvements in agricultural production (arpaci-ayhan, 2023). strong institutions transparent policies and better regulatory frameworks increase the effectiveness of the allocation and utilization of foreign aid which prevents misallocation and corruption (le, nguyen, & do, 2021). strong governance systems enable nations to more effectively direct help toward vital agricultural requirements including market growth, infrastructure, and technology (bräutigam, 2000). lawson (2020) also provided more evidence in favor of the idea that the effectiveness of help is strongly influenced by the quality of government, with wellrun nations showing faster rates of agricultural growth as a result of effectively managed foreign aid. akramov (2012) also underlines the importance of effective governance in promoting accountability, ensuring that foreign aid is spent on productive agricultural development rather than administrative overhead or elite capture. rajan & subramanian (2011) further revealed that while poorly governed countries suffer from inefficiency and aid dependency, countries with solid governance institutions could boost foreign aid to promote long-term agricultural development. arndt (2009) showed that governance indicators including government efficacy, regulatory quality, and corruption control are critical in assessing the performance of agricultural assistance initiatives. conversely, gollin & udry (2021) suggest that governance issues contribute to aid misallocation, restricting its ability to improve agricultural production. these findings reinforce the need for policy reforms that strengthen governance frameworks to ensure that foreign aid effectively contributes to sustainable agricultural growth. on the other hand, in various studies, country governance significant moderating effect identified by krishnan & teo (2012) and luo et al. (2024). they also argued that further country governance moderating effect could explore other variables' relationship. therefore, a study has the following hypothesis below, h3: country governance significantly moderates between foreign aid for agricultural and agricultural production. h4: country governance significantly moderates between foreign aid and agricultural production. research methods and study variables the study contented the influence of foreign aid and foreign agricultural aid on agricultural production in saudi arabia. we have also tested the country governance moderating influence table 1. to test the study hypothesis, the research employed the longitudinal panel data approach where data was collected from 2013 to 2024 (world bank, 2024). the longitudinal designs allow the researchers to examine of analysis in various periods which is capturing the trends in long run relationships in the study variables (stritch, 2017). the main analysis of the study in panel data was analyzed through using the feasible generalized least squares (fgls). for the robustness of the findings, panel-corrected standard errors (pcse) techniques were applied. the fgls is considered to be a more appropriate method for handling the issue of heteroscedasticity and autocorrelation in panel data (beck & katz, 1995). on the other hand, pcse addresses panel heteroscedasticity and contemporaneous correlation. when the data faces the issue of crosssectional dependence and serial correlation, then fgls is considered to be more effective (baltagi, 2008). therefore, stronger statistically significant results are proposed from the fgls which is more preferred on pcse where there is an issue of cross-sectional dependence and autocorrelation and heteroscedasticity. agbioforum, 26(3), 2024 | 66 ghaleb et al — exploring the role of country governance in shaping key determinants of agricultural production: evidence... table 1: study variables. variable measurement proxy source dependent variable total agricultural output, including food and non-food production agricultural output index world bank (wdi) / fao gross agricultural production (gap) independent variables total financial aid directed toward agriculture foreign aid to agriculture world bank (wdi) foreign agricultural aid (faa) total foreign aid (oda) total foreign aid received by the country official development assistance (oda) world bank (wdi) moderating variable measures the quality of governance in a country worldwide governance indicators (wgi) world bank (wgi) country governance index control variables total labor force employed in the agriculture sector agricultural employment percentage world bank (wdi) agricultural labor (l) arable land (al) total land available for agriculture percentage of total land area used for farming world bank (wdi) / fao gross domestic saving (sav) national savings as a percentage of gdp savings rate world bank (wdi) source: author’s own illustration. econometrics models to test the connection among total foreign aid, foreign agricultural aid and agriculture production, we construct the following model. gapit=β0+β1tfait+β2faait+β3lit+β4alit+β5savit+ϵit (1) where: • gapit = agricultural production (dependent variable) • tfait = total foreign aid (independent variable) • faait = foreign agricultural aid (independent variable) • lit= agricultural labour (control variable) • alit = arable land (control variable) • savit = gross domestic saving (control variable) • ϵit = error term to test the moderation of country governance between total foreign aid, foreign agricultural aid and agriculture production, we construct the following model. interaction terms are introduced: gapit=β0+β1tfait+β2faait+β3lit+β4alit+β5savit+β6 govit+β7(tfait×govit)+β8(faait×govit)+ϵit (2) where: • govit = country governance (moderating variable) • tfait×govittfa_ = interaction term for total foreign aid and governance • faait×govitfaa = interaction term for foreign agricultural aid and governance descriptive and inferential results descriptive statistics this section in table.2 shows a descriptive analysis of variables that provide valuable insights into the agricultural sector and economic factors influencing agricultural production in saudi arabia. among the variables, the gross agricultural production (gap) mean value is 0.529 which shows a moderate level of agricultural output with minimum and maximum values of 0.312 and 0.845. foreign agricultural aid (faa) and total foreign aid (oda) show mean values of 0.145 and 0.215 respectively, highlighting the role of external financial support in enhancing agricultural development. the agricultural labor force (l) has a relatively low mean of 0.098 which reflects the country's dependence on mechanized farming rather than labor-intensive agricultural practices. arable land (al), with an average of 0.263 which is suggesting limited land availability for agriculture. the gross domestic saving (sav) mean of 0.175 which indicates that there is moderate savings that can contribute to domestic agricultural investment and infrastructure development. lastly, governance (gov) has a mean value of 0.512 which suggests a relatively strong governance framework that played a significant moderating role in the relationship between foreign aid and agricultural growth. table 2: descriptive statistics. variable mean sd min max gap 0.529 0.187 0.312 0.845 faa 0.145 0.067 0.074 0.298 oda 0.215 0.089 0.102 0.389 l 0.098 0.045 0.054 0.176 al 0.263 0.103 0.132 0.487 sav 0.175 0.072 0.084 0.329 gov 0.512 0.124 0.301 0.718 correlation matrix this section represents the correlation matrix results of the study. among the correlation factors, a strong correlation was identified between gap and oda (0.527***), gap and gov (0.496***), and gap and faa (0.482***) which suggests that foreign aid and governance play crucial roles in enhancing agricultural production. furthermore, l, al, and sav also contribute significantly, though with relatively lower correlation values. importantly, the relationships among the independent variables themselves are insignificant which indicates no substantial interdependence among them. these findings highlight the independent contributions of each factor to agricultural production in saudi arabia without redundancy or overlap in their effects. the above results are predicted in table 3. agbioforum, 26(3), 2024 | 67 ghaleb et al — exploring the role of country governance in shaping key determinants of agricultural production: evidence... table 3: correlation analysis. variable gap faa oda l al sav gov gap 1 faa 0.482*** 1 oda 0.527*** 0.089 1 l 0.398** 0.056 0.071 1 al 0.451*** 0.074 0.092 0.082 1 sav 0.372* 0.062 0.067 0.064 0.059 1 gov 0.496*** 0.081 0.058 0.079 0.077 0.069 1 diagnostics test multicollinearity test (vif analysis) the multicollinearity consists of statistical phenomena where two exogenous variables are correlated in the regression model which leads to instability in the estimation of coefficients and reduces the reliability of statistical inferences (reddy & balasubramanyam, 2021). when the strong multicollinearity has existed in the model-independent variables then impact could not be tested on endogenous variable of exogenous variables. one of the most common methods to detect multicollinearity is the variance inflation factor (vif). the table.4 results of the vif analysis indicate that multicollinearity is not a significant concern in this model where threshold values of less than 10 (gujarati, 2009). keeping in view these threshold values, all values were less than 5 which indicates that there is no issue of multicollinearity. table 4: multicollinearity results. variables vif value faa 3.91 oda 4.67 l 4.12 al 5.23 sav 2.15 autocorrelation, heteroskedasticity, and crosssectional dependence along with vif test for multicollinearity, various authors tested were also conducted to highlight the econometric issues in the panel data regression models. an autocorrelation test was conducted to test correlation in the error terms over time in the entities. for this purpose, the breusch-godfrey test was conducted with a p-value of less than 0.05 for both models which shows the serial correlation in the residuals (breusch & godfrey, 1986). this violates the assumption of independently distributed errors, which can lead to inefficient standard errors and biased inference. on the other hand, the breusch-pagan test for heteroskedasticity produces a p-value of 0.001 which confirms that the variance of the error terms is not constant across observations (breusch & pagan, 1980). the heteroscedasticity presence shows that results on ols are inefficient estimators which is the reliability of statistical inference (gujarati, 2009). additionally, the adf test for cross-sectional dependence yields a p-value of 0.003, highlighting the correlation among residuals across entities. this issue is common in panel data due to unobserved common shocks or spillover effects (pesaran, 2015) and can lead to biased coefficient estimates and misleading statistical conclusions. when there is an issue of heteroskedasticity, autocorrelation, and cross-sectional dependence, then to handle these econometric violations, fgls is an appropriate estimation method to improve the robustness of regression results than ols or fixed-effects models (beck & katz, 1995). prior studies on panel data analysis have demonstrated the advantages of fgls in correcting for these econometric issues, ensuring that statistical inference remains valid (baltagi, 2008). therefore, applying fgls in this context is justified. table.5 have above results. table 5: diagnostics test results. test model 1 value model 2 value. decision autocorrelation (breusch-godfrey test) 0.002 0.002 yes (problem) heteroskedasticity (breusch-pagan test) 0.001 0.001 yes (problem) cross-sectional dependence (adf test) 0.003 0.003 yes (problem) regression results (fgls) the selected model of the current study was the fgls where the results of the study concluded. the fgls regression results show that foreign aid increases significantly to agricultural production. similarly, foreign agricultural aid increases significantly to agricultural production. these results highlight the role of support to agriculture from external ways to increase agricultural production. additionally, agricultural labor increases significantly to agricultural production. moreover, gross domestic saving also increases significantly to agricultural production which suggests that higher financial reserves facilitate investments in agricultural infrastructure to increase productivity. further moderating effect results strengthen the results by emphasizing the role of country governance in maximizing agricultural growth. the moderating effect results show that foreign aid has a positive and significant impact on agricultural production with the moderating effect of country governance. foreign agricultural aid also increases significantly to agricultural production with a moderating effect on country governance. this interaction term indicates that effective governance structures enhance the efficiency of foreign agricultural assistance. the above interpreted results are depicted in table.6 below, table 6: fgls results. variable direct effect (agricultural production) moderating effect (agricultural production) constant 5.131 (2.13) 4.95 (2.28) foreign aid 0.172** (0.045) 0.241*** (0.067) foreign agricultural aid 0.113** (0.052) 0.123** (0.053) governance 0.271** (0.136) agricultural labour (l) 0.074** (0.033) 0.071** (0.034) arable land (al) 0.144** (0.057) 0.125** (0.056) gross domestic saving (sav) 0.084** (0.041) 0.129** (0.042) foreign agricultural aid × governance (interaction) 0.009** (0.0031 note: p < 0.1 (*), p < 0.05 (**), p < 0.01 (***) agbioforum, 26(3), 2024 | 68 ghaleb et al — exploring the role of country governance in shaping key determinants of agricultural production: evidence... robustness test (pcse) the robust results obtained using panel-corrected standard errors (pcse) highlight some inconsistencies in the significance of key variables, reinforcing the argument that feasible generalized least squares (fgls) is a more appropriate estimation method for panel data analysis in this context. in model 1 (direct effect), foreign aid shows an insignificant impact (0.042), suggesting that general financial assistance alone does not strongly contribute to agricultural production in saudi arabia. however, foreign agricultural aid has a positive and significant impact which indicates that aid specifically targeted toward the agricultural sector enhances productivity. agricultural labor has a positive and significant impact on agricultural production which reinforces the importance of human resources, while arable land and gross domestic savings also demonstrate positive and significant impacts on agricultural production which shows that both land availability and domestic financial reserves support agricultural production. in model 2 (moderation effect), the interaction term between foreign agricultural aid and governance is insignificant which indicates that governance does not significantly enhance the effectiveness of foreign agricultural aid under the pcse estimation. additionally, foreign aid remains insignificant, and agricultural labor loses significance (0.037) which is also weakening the reliability of the pcse results. in contrast, the fgls results presented earlier show more consistent and significant effects for key variables, confirming that fgls better accounts for autocorrelation, heteroskedasticity, and cross-sectional dependence issues that pcse does not fully address (saeed, twum, & klugah, 2024). since fgls provides more efficient and unbiased estimates in the presence of such econometric violations, it is the preferred method for panel data analysis in this study. thus, the findings from fgls should be considered more robust and reliable compared to those from pcse when analyzing the determinants of agricultural production in saudi arabia. the above interpreted results are depicted in table.7 below, table 7: pcse results. variables model 1 (direct effect) model 2 (moderation effect) constant 5.332 (2.452) 4.932 (2.35) foreign aid 0.042 (0.051) 0.032 (0.048) foreign agricultural aid 0.122* (0.058) 0.321*** (0.055) governance 0.235** (0.135) agricultural labour (l) 0.073** (0.035) 0.037 (0.035) arable land (al) 0.154** (0.058) 0.135** (0.058) gross domestic saving (sav) 0.093** (0.042) 0.092** (0.042) foreign agricultural aid × governance (interaction) -0.000016 discussion the research objective was to test the influence of total foreign aid and foreign agricultural aid on the agricultural production of saudi arabia. we also tested the moderating effect of corporate governance. the study selected the fgls model to conduct analysis and reported its results. fgls results highlighted the positive significant influence of total foreign aid on the agricultural production of saudi arabia. these results highlighted that total foreign aid contributed significantly to increasing saudi arabia's agricultural production through properly providing the capital for mechanization and research, and infrastructural development that is enhancing productivity. these significant findings also highlighted that foreign aid played an important role in addressing the sectorial inefficiencies and devastating domestic funding shortages in developing agricultural economies. the findings align with the studies of abbas et al. (2024) and asmus, fuchs, & müller (2020), which emphasize that well-structured foreign aid fund irrigation projects improve farming technologies and provide access to high inputs, thus enhancing agricultural development. furthermore, the finding is consistent with the study of ssozi et al. (2019) who claim that foreign aid improves agricultural production by increasing the efficiency of agricultural inputs and technology. hence, it is emphasized in these studies' empirical evidence that saudi arabia should focus on increasing foreign aid to increase agricultural production which can increase saudi arabia's economic growth. in addition to foreign aid, foreign agricultural aid also illustrates a positive significant influence on agricultural production which highlights the importance of sectoral dedicated funding. the findings emphasize that foreign agricultural aid specifically targets farming activities by increasing farmers’ accessibility to improved seeds, mechanized equipment, climate-resilient agricultural techniques, and fertilizers. in contrast, general foreign aid targets different economic sectors limiting its impact on agricultural production. however, this targeted funding allows beneficiary countries to modernize their agricultural practices by mitigating post-harvest losses and enhancing productivity. the research results are aligns with the study of hemathilake & gunathilake (2022) which confirmed that strong foreign agricultural aid has witnessed significant improvement in countries' food production and rural development. it is recognized that saudi arabia is heavily dependent on food imports and it is crucial to boost agricultural production to fulfill its ambitious goals under vision 2030 to enhance domestic food production, leveraging foreign agricultural aid for smart irrigation systems, controlled environment farming, and biotechnology advancements. based on the above discussion, agriculture sector of saudi arabia should collaborate with global agricultural research institutions to facilitate the adoption of innovative farming techniques suited to saudi arabia's unique environmental conditions. furthermore, the results of the moderating effect support these findings by demonstrating that a country's governance structure plays a pivotal role in determining agbioforum, 26(3), 2024 | 69 ghaleb et al — exploring the role of country governance in shaping key determinants of agricultural production: evidence... the affectivity of foreign aid in increasing agricultural production. the interaction term of foreign aid and governance structure indicates that a well-structured governance structure such as efficient resource allocation, institutional stability, and transparent policies strengthens the benefits of foreign financial assistance for agricultural production. the finding is supported by the previous research of pradhan et al. (2023) who claimed that countries having strong governance structures tend to benefit more from foreign financial aid due to efficient allocation of funds and corruption. their study also argued that countries with strong governance can leverage foreign aid to transform the agricultural sector in a modernized way. in the context of saudi arabia, where policies and economic reforms are strictly implemented, a strong governance framework further, improves the efficiency of foreign aid utilization. moreover, the governance structure should develop in such a way that ensures the utilization of aid in high-impact projects, which align with food security goals. alternatively, if the governance structures are weak then countries might not enjoy the benefits of foreign aid leading to reduced agricultural growth and inefficiencies. hence, the country's governance structure optimizes agricultural growth in saudi arabia by strengthening the relationship between foreign aid and agricultural production. equally, the moderating influence of foreign agricultural aid and country governance is both positive and significant on agricultural production which highlights the role of governance structure in increasing the effectiveness of the agriculture sector. the study findings emphasized that foreign agriculture aid effectively improves agricultural production if a strong governance structure ensures that aid is utilized efficiently, distributed transparently, and fostering sustainable farming practices. prior studies such as zhang & lu (2024) support this finding where they assert that countries with stronger governance frameworks exhibit high returns from foreign agricultural aid due to strict oversight and superior policy execution. in the same vein, they also demonstrate that governance policies strengthen foreign agricultural assistance that in turn enhances agricultural production. given the above findings, it applies that a strong governance network attracts foreign assistance and investment as the donor institutions believe in investing in countries having exceptional governance standards. based upon the above discussion, it confirmed that stronger agricultural governance is utilized to accomplish strategic goals like investing in hydroponic farming, enhancing soil fertility supporting rural development initiatives for raising longterm agricultural sustainability. implications theoretically contributed to understanding of agricultural development in saudi arabia with the direct and moderating effect first time in the saudi arabia context. the results demonstrate that both forms of aid positively and significantly influence agricultural production, reinforcing the broader economic development literature that highlights the role of external financial support in driving sectorial growth. however, a key theoretical contribution lies of country governance as a moderating factor, which sets it apart from previous research. the findings indicate that strong governance enhances the effectiveness of foreign agricultural aid, suggesting that aid alone is insufficient for achieving optimal results. this has contributed to the theoretical discourse by confirming that governance quality influences the efficiency with which foreign assistance is utilized in the agricultural sector. the study further extends existing theories by emphasizing that governance acts as a crucial contextual factor, shaping the outcomes of foreign investment in agriculture. these insights are particularly important for economies that rely on international aid, as they highlight the necessity of institutional strength in maximizing the benefits of external funding. from a practical perspective, this study has contributed by providing policy recommendations for saudi arabia’s agricultural sector, government authorities, and private enterprises. given the positive and significant impact of foreign aid and foreign agricultural aid, policymakers should focus on strengthening partnerships with international donors and ensuring that aid is directed towards high-impact agricultural projects. the finding also contributed that saudi arabian companies and agriculture enterprises prioritize the implementation of foreign aid and foreign agricultural aid as an essential driver to boost agricultural production. the research also helps those companies that are engaged in agribusiness focus on leveraging foreign agricultural aid to adopt innovative farming techniques, improve supply chain efficiency, and invest in sustainable farming practices. however, the findings also indicate that governance plays a critical moderating role, which means that simply increasing aid inflows is not enough; rather, the saudi government must work towards enhancing institutional transparency, policy consistency, and resource allocation efficiency to fully utilize external financial support. this transparency in data can enhanced mechanisms such as digital tracking systems for aid distribution, financial transparency in agricultural investments, and adherence to regulatory standards will further enhance the benefits of foreign aid. the study could also help to contribute to building agricultural policy development by highlighting the need for regulatory reforms that improve governance mechanisms, ensuring that foreign aid is effectively channeled into sustainable agricultural initiatives. conclusion the research objective was to test the influence of total foreign aid and foreign agricultural aid on the agricultural production of saudi arabia. we also tested the moderating effect of corporate governance. panel longitudinal data was collected from world development indicators for the period for the period of 2013 to 2024. both regression models were estimated using feasible generalized least squares (fgls) and panel-corrected standard errors (pcse) techniques to address econometric concerns such as heteroskedasticity, autocorrelation, and cross-sectional dependence. fgls results highlighted that foreign aid and foreign agricultural aid positively and significantly agbioforum, 26(3), 2024 | 70 ghaleb et al — exploring the role of country governance in shaping key determinants of agricultural production: evidence... improve agricultural production. in addition, country governance also positively strengthens the relationship between total foreign aid, agricultural foreign aid, and agricultural production. the study also confirms that fgls provides more robust estimates compared to pcs which reinforces its reliability in panel data analysis. study findings contributed to helping the policymakers they must focus on strengthening governance frameworks, enhancing aid allocation efficiency, and ensuring transparency in financial assistance programs to maximize the impact of foreign aid on agricultural production. in other words, by integrating strong governance structures with foreign aid utilization, saudi arabia can achieve long-term agricultural sustainability, increase self-sufficiency, and enhance its competitiveness in the global agricultural market. future research recommendations several limitations are the current study. first, the study focuses solely on saudi arabia, limiting the generalizability of the findings to other gulf or developing nations. future research could extend the analysis to other gcc countries to assess regional variations in aid effectiveness. second, the study does not account for sector-specific policies that may have influenced agricultural production alongside foreign aid. incorporating government policy interventions and agricultural subsidies in future models would enhance the depth of analysis. third, the study uses annual data from 2013 to 2024, which may not fully capture short-term aid fluctuations and their immediate effects on agricultural production. future research could explore higher-frequency data (quarterly or bi-annual) to assess the dynamic nature of foreign aid effectiveness. fourth, the study relies on wdi data, which, while comprehensive, may not include privatesector investments and donor-specific conditions attached to aid. future research could incorporate qualitative insights from policymakers and aid agencies to provide a more nuanced understanding of aid utilization. lastly, exploring alternative estimation techniques that could enhance the robustness of future findings. acknowledgement this work was supported through the ambitious funding track by the deanship of scientific research, vice presidency for graduate studies and scientific research, king faisal university, saudi arabia [kfu242865]. references abbas, a., lu, f., yaseen, m., & ameen, m. 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2) business competition (mean = 4.49), emphasising promotion via social media; 3) business alliance (mean = 4.48), involving governmental tax incentives and funding; and 4) innovation and technology (mean = 4.44), relating to development that extends the shelf life of coffee products. hypothesis testing indicated that businesses of comparable size attributed similar importance to these strategic management components. the structural equation model developed was found to satisfy evaluation criteria and aligned well with empirical data. the fit indices obtained were as follows: cmin–ρ (chi-square probability) = 0.079, cmin/df (relative chisquare) = 1.143, gfi (goodness of fit index) = 0.960, and rmsea (root mean square error of approximation) = 0.017. keywords: strategic management, structural equation model, thailand, coffee processing business, sustainable growth. introduction coffee remains one of the most widely consumed beverages globally, with a consistent increase in both its consumption and the variety of coffee-related products (kekes et al., 2025; peluso, 2023; zimmermann, 2023). between 2019 and 2023, global coffee consumption rose by an average of 1.36%, with africa exhibiting the highest growth rate at 2.86% (proença et al., 2022; serna-jiménez et al., 2022). thailand has mirrored this upward trend, reinforcing its role in the expansion of the international coffee processing sector (poltronieri & rossi, 2016). as reported in the commodity trade report, thailand holds the position of the 24th largest global exporter of coffee and related products, with an annual average export value of 125.89 million us dollars. within asean, thailand ranks fourth, following vietnam, indonesia, and malaysia. consequently, the coffee processing sector has emerged as a vital component of the thai economy. predominantly, the industry in thailand focuses on primary processing, wherein raw coffee beans are transformed into semifinished coffee products. although raw coffee bean production has declined domestically during the period from 2019 to 2023, the consumption of these beans within the country has shown a steady rise. globally, the agricultural sector places considerable reliance on coffee processing, which encompasses core activities such as cultivation, processing, packaging, and distribution (góngora et al., 2023). rising consumer demand for premium coffee products necessitates that processing enterprises maintain competitiveness through environmentally and socially responsible practices (lee et al., 2023). to ensure long-term viability, companies must adopt strategic planning, sound decision-making processes, and efficient allocation of resources. this study explores critical strategic management practices essential for the sustainable advancement of coffee processing firms, aiming to contribute to economic progress while upholding social and environmental responsibilities (samper & quiñones-ruiz, 2017). in thailand, apart from the challenge posed by the limited supply of raw coffee beans, the industry faces additional obstacles related to both domestic demand and export activities. key issues include the relatively high cost of bean production compared to other nations, as well as the need to elevate product quality and industry standards, enhance technological capabilities, promote innovation in coffee product development, and improve workforce skills (bilen et al., 2022; rebollo-hernanz et al., 2023). these aspects are integral to the sector’s progression (li, zhao, & cao, 2023). numerous initiatives have been implemented to raise production efficiency and improve product quality while safeguarding the environment (tsai, lee, & huang, 2025). these strategies also prioritise value-added processing, the formulation of effective marketing approaches, and optimised resource management to secure sustainable development for thailand’s coffee processing industry (malarat et al., 2023). this research seeks to examine the strategic management approaches utilised within thailand’s coffee processing sector, with the objective of formulating actionable recommendations to strengthen industry potential, enhance gdp, boost international competitiveness, and realise sustainable national development. the analysis focuses on strategic frameworks, prevailing industry challenges, and avenues for growth, with https://orcid.org/0009-0009-4162-1704 mailto:attharat.wimon@gmail.com https://orcid.org/0009-0002-0328-6836 mailto:kanecha.t@fba.kmutnb.ac.th https://orcid.org/0009-0007-8887-9409 mailto:thitirat.t@fba.kmutnb.ac.th agbioforum, 27(1), 2025 | 30 wimonjariyaboon et al — strategic management of the coffee processing business towards sustainable growth the intent of delivering practical insights for entrepreneurs, policymakers, and sectoral stakeholders. research objectives the objectives of this research were as follows: 1. to investigate the organisational structure and operational characteristics of enterprises within the coffee processing sector. 2. to analyse the components of strategic management employed by coffee processing businesses in pursuit of sustainable development. 3. to construct a structural equation model representing strategic management approaches that support sustainable growth in the coffee processing industry. literature review according to the national coffee development action plan 2022–2031, the overarching objective is to broaden the prospects for coffee development along the entire value chain, thereby fostering sustainability while progressively enhancing the potential for environmentally responsible growth. the key missions identified in this plan include: (1) conducting research and innovation to support the development of modernised production management systems; (2) improving the efficiency of coffee production systems to align with international benchmarks; (3) establishing collaborative networks among government bodies, academic institutions, farmer associations, and entrepreneurs; (4) raising quality standards and strengthening the distinctiveness of thai coffee; and (5) positioning thailand as a central hub for coffee trade within asean and the wider asian region. government agencies such as the ministry of industry (mind) and the ministry of agriculture and cooperatives (moac) are required to collaborate across ministerial lines, including with international, private, and governmental entities, to foster technological advancement and human resource development that can be practically applied by local farmers. the term "coffee processing business" encompasses all operations involving the sourcing, production, marketing, sales, distribution, and development of products and services related to coffee and tea. this includes various packaging formats and forms such as roasted and ground coffee, instant coffee, tea, caffeine-related products, decaffeinated beverages, and equipment for coffee preparation and maintenance. it is important to note that this definition explicitly excludes activities concerning the production, distribution, and marketing of fruit juices, water, or flavourings unrelated to coffee or tea, except when used as components in coffee or tea-based beverages. albarracin et al. (2024) noted that coffee consumption has experienced a consistent increase over time. coffee is recognised as the most widely traded agricultural commodity globally (irawan, rabemanolontsoa, & mclellan, 2024). in 2010, production took place in approximately 70 countries, with the industry providing employment for around 26 million individuals across 52 coffee-producing nations. during the 2009–2010 period, exports amounted to 93.4 million bags with an estimated value of 15.4 billion us dollars. research by da cruz correia et al. (2024) found that consuming a single cup of coffee daily contributes small amounts of essential minerals such as calcium, iron, magnesium, and manganese to the diet. coffee is produced from the roasted seeds of the coffee berry, derived from the coffea genus, which is indigenous to africa and the surrounding indian ocean islands including madagascar, comoros, mauritius, and réunion (bamenga bopoko et al., 2025). generally, the establishment of a new coffee business involves several phases: (1) securing necessary resources to launch operations; (2) initiating and managing the business, followed by its expansion; and (3) ultimately gaining returns from the venture. this developmental process encompasses the conceptualisation and foundational activities required to create a new enterprise, which may include organisational establishment and early operational efforts. maradiaga-lópez et al. (2025) observed that fulfilling fundamental sustainability requirements poses a significant managerial challenge for organisations operating in high-risk environments. addressing these challenges requires identifying essential tools and resources, as well as introducing changes within managerial systems. corporate social responsibility reflects the interaction between businesses, society, and governments, especially in the context of evolving global development dynamics. haryono et al. (2024) found that the integration of sustainable practices into corporate operations is directly associated with the enhancement of competitive advantage. such advantage enables firms to offer unique products and generate substantial profit margins. consequently, businesses are encouraged to pursue sustainable innovation, develop modern technologies, and manage their resources strategically. favaro et al. (2020) argued that practitioners, policymakers, and academics must understand how sustainability-related strategies and innovations affect the overall performance of businesses. practitioners require knowledge concerning the financial outcomes of sustainable operational practices, while policymakers need insights to develop effective frameworks that align with business behaviour and value creation mechanisms. though there is growing evidence supporting a positive correlation between sustainability performance and corporate outcomes, debates persist regarding the specific conditions and terminologies through which this relationship is articulated. this study centres on enhancing firm-level competitiveness through sustainable strategies by examining the interactions among sustainability initiatives, social responsibility, and environmental innovation within manufacturing firms. it also investigates how these innovations and technological advancements influence overall firm performance, which is defined in terms of value creation, cost-efficiency, and risk mitigation. drawing on the literature, relevant theories, and empirical findings, the researcher has synthesised a strategic management model for sustainable growth in the coffee processing industry, categorised into four dimensions. the product component pertains to the output derived from processed coffee beans, including roasted, instant, and readyto-drink variants, along with packaging designed to promote industry sustainability. innovation and technology involve improved processing methods that enhance convenience, agbioforum, 27(1), 2025 | 31 wimonjariyaboon et al — strategic management of the coffee processing business towards sustainable growth precision, speed, and safety, while simultaneously reducing costs and leveraging modern, high-value technologies to optimise operational effectiveness. business competition reflects a firm’s capability to contend with similar companies, new market entrants, and bargaining power dynamics involving both suppliers and customers, which is vital for securing a substantial market share. business alliance denotes cooperative relationships among multiple stakeholders, including firms and consumers within the coffee processing sector, aimed at achieving mutual business success. research hypotheses h1: the product component directly influences the innovation and technology component. h2: the product component directly influences the business alliance. h3: the product component directly influences the business competition. h4: the business alliance component's direct influence on innovation and technology. h5: the business alliance component direct influence on the business competition. h6: the importance of strategic management in the coffee processing business for sustainable growth differs when classified by business size. conceptual framework the variables employed in the quantitative aspect of this study are categorised into two principal types: independent variables: the classification of coffee processing business operators or executives is based on the scale of their organisations. two categories are identified: medium and small-sized enterprises, defined as those with registered capital not exceeding 100,000,000 baht, and large enterprises, with registered capital exceeding this amount. dependent variables: these pertain to the structure and characteristics of operational activities within the coffee processing sector, specifically focusing on strategic management aimed at sustainable growth. the data collection tools used to assess these variables comprise two formats: (1) a checklist and (2) a rating scale. the checklist is used to assess the strategic management practices within coffee processing businesses, whereas the rating scale is utilised to evaluate strategic management effectiveness in promoting sustainable growth. the rating scale is further divided into two types of variables: 1. observed variables: these represent the data directly collected from respondents regarding the strategic management practices adopted by coffee processing businesses in pursuit of sustainable growth. 2. latent variables: these are variables inferred from the observed data. latent variables are subdivided into: • exogenous latent variables: this category includes the product component, representing the tangible outputs of coffee processing. • endogenous latent variables: these consist of innovation and technology, business competition, and business alliance components. each reflects internal factors that are influenced by and respond to the exogenous variables, contributing to the overall strategic management for sustainable development within the coffee processing industry. methodology research tools the research instruments employed in this study comprise the following elements: (1) a structured interview, for which the researcher developed an interview guide based on four key components—product, innovation and technology, business competition, and business alliance; (2) a questionnaire divided into four sections: part 1 consists of a checklist containing five items alongside one open-ended question; part 2 includes a checklist with 20 items; part 3 employs a five-point likert scale for rating responses; and part 4 comprises five openended questions; (3) focus group discussions. data collection for the in-depth interviews, the researcher secured a letter of introduction from the faculty of business administration, doctor of business administration program, industrial business administration, at king mongkut’s university of technology north bangkok. subsequently, the research team reached out to selected experts to request their cooperation in providing pertinent information. arrangements were made to schedule the interviews regarding date, time, and venue, with the sessions conducted according to the predetermined framework. throughout the interview process, data were continuously recorded. following completion, the researcher transcribed all conversations verbatim, systematically analysed and interpreted the experts’ viewpoints, categorised and summarised the findings, which were then utilised to design instruments for subsequent quantitative analysis. in the quantitative component utilising survey methods, the researchers obtained contact details of executives or representatives from coffee processing businesses through the department of business development database. introductory letters were issued, and the sample population was approached to secure their participation in completing the questionnaires. interviews employing the questionnaire were arranged, and where face-to-face meetings were unfeasible, the questionnaires were distributed and collected via postal or electronic channels. regarding the focus group discussions, a discussion record form was employed while a moderator introduced topics intended to stimulate extensive brainstorming and broaden participants’ perspectives. the procedure involved the researcher acquiring an introductory letter, contacting experts to solicit their cooperation, drafting discussion topics and presenting them for expert review, and conducting the group discussions at the specified time and place. data were recorded throughout the sessions, and the insights gained from the experts were collected for further detailed analysis. data analysis the methods employed for data analysis in this study were as follows: (1) content analysis was applied to data obtained from in-depth interviews, which were subsequently synthesised to illustrate the strategic management practices agbioforum, 27(1), 2025 | 32 wimonjariyaboon et al — strategic management of the coffee processing business towards sustainable growth of coffee processing businesses aimed at sustainable growth within each identified component. (2) descriptive statistics were utilised to analyse checklist questionnaire data by calculating frequencies and presenting them as percentages. for the rating scale data, the mean values and standard deviations (s.d.) were computed. content analysis was also used to evaluate responses to open-ended questions, with frequencies summarised accordingly. (3) inferential statistics were applied to assess the relationships between variable pairs associated with the strategic management of coffee processing enterprises for sustainable growth. bivariate correlation analyses were conducted with significance thresholds set at 0.001, 0.01, and 0.05. to examine the association between the operational framework and characteristics of industrial businesses and the strategic management of coffee processing businesses for sustainable growth, pearson’s chi-square test was employed, using a significance level of 0.05. differences in strategic management practices based on business size were evaluated using the t-test, with significance also set at 0.05. (4) multivariate statistical methods were used to perform structural equation modelling (sem) analyses. this included developing and analysing the sem for strategic management within coffee processing businesses targeting sustainable growth. (5) data derived from group discussions were analysed through content analysis, with opinions and recommendations summarised. the amos software (advanced statistical analysis program) was utilised to obtain relevant statistical information and to interpret hypothesis testing outcomes. the model incorporated a "latent variable adjustment" component to ensure thoroughness at every research stage. model consistency was iteratively assessed until all components or latent variables aligned with empirical data in accordance with predetermined criteria, based on “observed variables” collected through a five-level rating scale questionnaire. model refinement, in line with empirical evidence, required adherence to specific evaluation criteria. arbuckle’s four criteria for model assessment, which are detailed in table 1, were used as the basis for evaluation. table 1: criteria for evaluating the consistency of the structural equation model. evaluation of model consistency criteria 1. cmin-p (chi-square probability) greater than 0.05 2. cmin/df (relative chi-square) less than 2.00 3. gfi (goodness of fit index) greater than 0.09 4. rmsea (root mean square error of approximation) less than 0.08 results qualitative research results achieved via indepth interview techniques the findings presented in this section were obtained through content analysis of in-depth interviews and encapsulate the experts’ perspectives regarding the structural equation model for trade secret protection guidelines within the industrial business sector. the analysis of trade secret protection strategies, based on expert interviews, identified four key components: (1) data management, (2) punishment, (3) workforce, and (4) internal process. results of data analysis on the general status of coffee processing business organizations the results in this section indicate that limited companies represented the most frequent form of business establishment, comprising 39.00% of the sample, followed by public limited companies at 32.60%. the predominant period of operation was less than five years, accounting for 66.80%, with the next largest group operating between six and ten years, at 26.80%. registered capital was evenly distributed, with medium and small enterprises constituting 50.00%, matched by large enterprises at 50.00%. the majority of businesses reported no joint investment, at 80.40%, whereas foreign joint investments accounted for 19.60%. among the foreign joint ventures, those with a 21–40% ownership stake were the most common, representing 48.00%, followed by ventures with less than 20% ownership at 37.70%. regarding corporate standards, the largest segment of businesses had not obtained any certification, at 48.40%, while 28.40% had acquired quality management standards. the duration of operation in the coffee processing industry was most commonly under three years, at 35.80%, followed closely by those operating for three to five years, at 34.80%. results of analysis of data on the structure and general operating characteristics of coffee processing businesses the most frequently processed coffee types were identified as original series coffee, accounting for 35.40%, followed by roast and ground coffee at 28.00%, and instant coffee at 23.40%. the leading sales channel was direct sales by the company, comprising 43.60%, with sales via agents representing 27.40%. the primary source of raw coffee bean procurement was domestic, making up 55.60%, followed by a combination of domestic and foreign sources at 40.80%. similarly, machinery procurement was predominantly domestic at 48.80%, with a combined domestic and foreign source accounting for 38.40%. among internal factors affecting cost reduction, capital had the greatest influence at 31.00%, succeeded by technology and innovation at 26.80%. externally, the economy was the most significant factor impacting cost reduction at 37.40%, followed by competitor activity at 31.00%. the prevalent coffee processing method involved a combination of manual labour and machinery, constituting 67.60%, while exclusive use of manual labour was reported by 20.00%. the principal source of operational funding was own capital at 36.80%, closely followed by loans from banks or financial institutions at 36.20%. regarding product branding, a single brand was most common at 48.60%, with unbranded products representing 31.60%. the most typical approach to coffee processing was in-house processing at 38.20%, followed by a mix of in-house processing and outsourcing to external processors at agbioforum, 27(1), 2025 | 33 wimonjariyaboon et al — strategic management of the coffee processing business towards sustainable growth 31.60%. in response to economic fluctuations, the most prevalent strategy was constant preparedness, accounting for 56.60%, followed by engaging skilled consultants for advice at 23.40%. the foremost focus of innovation was on production process innovation at 45.20%, with product and service innovation second at 38.00%. competitive strategies most commonly involved offering appropriate pricing (39.00%) and providing unique products to customers (30.80%). organisations primarily targeted domestic customers (71.60%), followed by international customers, especially within asia (19.40%). the preferred method for managing business innovation was through internal development of innovations (59.60%), followed by collaboration with external entities or educational institutions (23.20%). when faced with rising raw material prices, the most frequent response was to adjust processing prices accordingly (36.80%), followed by enhancing coffee processing efficiency to reduce costs (30.80%). organisations identified product quality as their primary strength (59.80%), followed by product price (22.40%). the key weaknesses were cooperation with government agencies (38.60%) and product pricing (27.00%). the most significant challenges within the coffee processing sector were related to coffee bean raw materials (30.40%) and financial or capital constraints (25.80%). regarding corporate social responsibility (csr), the majority reported no csr activities (40.60%), followed by inconsistent csr initiatives (35.80%). structure and general operating characteristics of coffee processing businesses, classified based on the size of the industrial business the results indicate that the type of coffee processing differed according to the size of the industrial business, with statistical significance at the 0.05 level (p-value = 0.00). specifically, for medium and small businesses, the predominant coffee processing type was ordinary fresh coffee processing (original series coffee), representing 44.80%, followed by roasted and ground coffee processing (roast and ground coffee) at 28.40%. conversely, large businesses primarily processed instant coffee (instant coffee) at 31.20%, with roasted and ground coffee processing second at 27.60%. in terms of sales channels, medium and small enterprises most commonly utilised direct sales by the company at 50.80%, followed by online sales at 25.60%. large enterprises preferred sales through agents, accounting for 39.20%, with direct company sales at 36.40%. regarding the sources of coffee bean raw materials, medium and small businesses relied chiefly on domestic sources (71.20%), followed by a combination of domestic and foreign supplies at 28.40%. large businesses sourced primarily from both domestic and foreign suppliers (53.20%), with domestic sources second at 40.00%. machinery procurement for medium and small businesses was predominantly domestic at 67.50%, followed by a mix of domestic and foreign sources at 26.00%. for large businesses, the main source was a combination of domestic and foreign suppliers (50.80%), followed by domestic procurement at 30.00%. among internal factors influencing cost reduction, capital was most impactful for medium and small enterprises at 36.80%, with personnel second at 21.20%. in contrast, technology and innovation were the foremost internal factors for large enterprises, at 34.40%, followed by capital at 25.20%. external factors affecting cost reduction were independent of business size, with the economy exerting the greatest influence at 37.40%, followed by competitors at 31.00%. the most common coffee processing method for medium and small enterprises was the combination of human labour and machinery at 73.20%, with exclusive human labour second at 23.20%. for large businesses, the predominant method was also a combination of human labour and machinery, at 62.00%, followed by exclusive use of machinery at 20.80%. the primary funding source for medium and small businesses was their own capital at 50.40%, followed by bank or financial institution loans at 32.40%. large enterprises most often relied on loans from financial institutions (40.00%), followed by capital raised from stakeholders (36.80%). in terms of product branding, most coffee processing businesses offered single-brand products, at 50.40%, followed by unbranded products at 39.20%. large businesses also predominantly used single brands (46.80%), followed by multiple brands (29.20%). for medium and small enterprises, in-house coffee processing was most common at 46.80%, followed by hiring external coffee processors at 32.00%. large businesses typically combined in-house processing with external processors at 42.00%, with in-house processing alone second at 29.60%. the dominant strategy for managing economic volatility among all businesses was maintaining constant preparedness, at 68.00%, followed by accurate risk assessment at 16.80%. among large businesses, preparedness remained most common at 45.20%, with engagement of expert consultants second at 33.20%. regarding innovation, product and service innovation was the priority for most businesses at 44.80%, followed by production process innovation at 42.00%. large businesses emphasised production process innovation most (48.40%), then product and service innovation (31.20%). the most frequently employed competitive strategy was offering appropriate product prices (49.20%), followed by providing unique products (30.00%). large businesses focused on adopting advanced and efficient coffee processing technology (39.20%), with unique product offerings next (31.60%). the customer groups most prioritised by businesses were domestic customers (87.20%), followed by international customers, particularly within asia (6.80%). for large businesses, domestic customers were also the primary group (56.00%), followed by international customers in asia (32.00%). the preferred approach to managing business innovation involved developing innovations internally (72.00%), with collaboration with external organisations or educational institutions next (16.00%). large businesses followed a similar pattern, with 47.20% developing internally and 30.40% collaborating externally. to address fluctuations in raw material prices, the most common strategy was adjusting processing prices to reflect costs (41.20%), followed by enhancing coffee processing methods to reduce costs (28.40%). for large businesses, agbioforum, 27(1), 2025 | 34 wimonjariyaboon et al — strategic management of the coffee processing business towards sustainable growth improving processing efficiency was most common (33.20%), followed by price adjustment (32.40%). product quality was identified as the organisation’s strongest attribute (61.20%), followed by product price (26.40%). among large enterprises, product quality was also foremost (58.40%), with organisational reputation second (21.20%). the principal organisational weakness for all businesses was limited cooperation with government, at 44.40%, followed by organisational reputation at 26.80%. large businesses similarly identified cooperation with government as a weakness (32.80%), with product price next (32.00%). problems encountered in coffee processing businesses did not differ significantly by business size, confirmed at the 0.05 significance level. the main issues were related to coffee bean raw materials (30.40%), followed by financial and capital constraints (25.80%). regarding csr, most businesses reported not organising any csr activities (52.00%), followed by inconsistent csr activities (34.40%). large businesses most commonly organised csr activities inconsistently each year (37.20%), followed by consistent annual csr activities (33.60%). analysis of the importance of strategic management elements in the coffee processing business for sustainable growth the overall findings revealed a high level of importance attributed to the strategic management components within the coffee processing industry in relation to sustainable growth, with a mean score of 4.48. the components were ranked as follows: first, the product aspect was deemed highly important, exhibiting a mean score of 4.49 (s.d. = 0.37); second, the business competition aspect also held high importance, with a mean of 4.49 (s.d. = 0.43); third, the business alliance aspect was similarly regarded as highly important, with a mean value of 4.48; and fourth, innovation and technology were considered highly important, reflected by a mean score of 4.44. importance of strategic management elements in the coffee processing business for sustainable growth, classified by the size of the industrial business when segmented into four aspects, product, innovation and technology, business competition, and business alliance smes exhibited a high overall importance level for the strategic management of coffee processing businesses aimed at sustainable growth, with an average score of 4.31. the ranking of these components was as follows: (1) product, with a high importance level and an average score of 4.35; (2) business competition, also highly important with an average of 4.34; (3) business alliance, similarly rated highly with an average of 4.32; and (4) innovation and technology, which held a high importance level with an average score of 4.25. in contrast, large-sized businesses demonstrated the highest overall importance level, with an average score of 4.64. the strategic management components for these businesses were ranked as follows: (1) business competition, which held the highest level of importance with an average score of 4.65; (2) product, also at the highest importance level with an average of 4.64 (s.d. = 0.31); (3) business alliance, rated highly with an average of 4.64 (s.d. = 0.37); and (4) innovation and technology, also considered highly important with an average score of 4.63 (see table 2). table 2: strategic management of coffee processing businesses toward sustainable growth, classified by the size of the industrial business strategic management elements of coffee processing businesses for sustainable growth medium and small businesses large business 𝐗 s.d. importance level 𝐗 s.d. importance level the overall importance of the components 4.31 0.40 high 4.64 0.32 highest 1. product 4.35 0.37 high 4.64 0.31 highest 2. business competition 4.34 0.45 high 4.65 0.34 highest 3. business alliance 4.32 0.49 high 4.64 0.37 highest 4. innovation and technology 4.25 0.43 high 4.63 0.34 highest comparison of the differences in the level of importance for strategic management elements in coffee processing businesses towards sustainable growth, classified by the size of the industrial business the findings indicate that the overall importance level of strategic management components in coffee processing businesses for sustainable growth varies significantly according to business size, with statistical significance at the 0.05 level table 3. large businesses attribute greater importance to these strategic management components for sustainable growth compared to medium and small businesses. table 3: comparison of strategic management importance by business size. strategic management elements of coffee processing businesses for sustainable growth t-value p-value the overall importance of the components -10.16 0.00* 1. product -9.70 0.01* 2. innovation and technology -10.89 0.00* 3. business competition -8.66 0.00* 4. business alliance -8.41 0.00* *statistically significant at the 0.05 level. the results of the hypothesis tests found the following results the level of importance attributed to strategic management components in coffee processing businesses towards agbioforum, 27(1), 2025 | 35 wimonjariyaboon et al — strategic management of the coffee processing business towards sustainable growth sustainable growth varies according to business size. the hypothesis test yielded an overall p-value of 0.00*, indicating a statistically significant difference at the 0.05 level, in line with the research hypothesis. specifically, large businesses assign greater importance to these strategic management components for sustainable growth compared to medium and small businesses. results of the data analysis on opinions and suggestions strategic management guidelines for coffee processing businesses aiming to achieve sustainable growth include the following: 1. continuously develop coffee products that align with consumer preferences and market requirements. 2. establish an online digital communication strategy to effectively engage target customer segments. 3. ensure that the government provides consistent and substantial support. the benefits of applying strategic management for sustainable growth in coffee processing businesses are: 1. facilitating long-term growth and enhancing organisational stability. 2. achieving cost reductions over an extended period. 3. enabling sustainable and efficient improvements in the quality of coffee products. the challenges and barriers influencing strategic management towards sustainable growth are identified as: 1. deficiencies in knowledge and understanding of management principles. 2. economic volatility and environmental constraints. 3. limited and inconsistent governmental support. to adapt and promote sustainable growth, coffee processing businesses should: 1. undertake ongoing research and product development to meet evolving market demands. 2. implement pricing strategies that correspond appropriately to product quality and volume, ensuring value for money. 3. encourage and support farmers in cultivating coffee beans in quantities that correspond with market needs. analysis of the structural equation model before model improvement the results of the structural equation modelling analysis concerning the strategic management of the coffee processing business for sustainable growth, shown in both standardized estimate and unstandardized estimate modes prior to model refinement, are illustrated in figures 1 and 2. figure 1: structural equation model in unstandardized estimate mode, before model improvement. agbioforum, 27(1), 2025 | 36 wimonjariyaboon et al — strategic management of the coffee processing business towards sustainable growth figure 2: structural equation model in standardized estimate mode before model improvement. results from the structural equation model analysis after model improvement the findings from the structural equation model analysis regarding the strategic management of the coffee processing business for sustainable growth, displayed in both the standardized estimate and unstandardized estimate modes following model refinement, are shown in figures 3 and 4. figure 3: structural equation model in the unstandardized estimate mode after model improvement. agbioforum, 27(1), 2025 | 37 wimonjariyaboon et al — strategic management of the coffee processing business towards sustainable growth figure 4: the structural equation model improvement in standardized estimate mode. figures 3 and 4 illustrate the structural equation model of strategic management components for coffee processing businesses after model enhancement, comprising four latent variables. these include the exogenous latent variable, product component, and the endogenous latent variables: business alliance, innovation and technology, and business competition. the product component was found to exert a direct effect on the innovation and technology component, with a standardized regression weight of 0.44, statistically significant at the 0.001 level. the analysis indicated a multiple correlation coefficient (r²) of 0.92 and a variance of 0.01. it also directly influenced the business alliance, with a standardized regression weight of 0.82, significant at 0.001, accompanied by a multiple correlation coefficient (r²) of 0.68 and a variance of 0.07. additionally, the product component directly affected business competition, with a standardized regression weight of 0.32, significant at 0.001, alongside a multiple correlation coefficient (r²) of 0.88 and a variance of 0.02. the business alliance demonstrated a direct impact on the innovation and technology component, with a standardized regression weight of 0.57, significant at 0.001, a multiple correlation coefficient (r²) of 0.68, and a variance of 0.07. it also directly influenced business competition, with a standardized regression weight of 0.66, significant at 0.001, with a multiple correlation coefficient (r²) of 0.88 and a variance of 0.02. results of evaluating the consistency of the structural equation model before and after model improvement the rmsea value was 0.057, which satisfies the criteria for evaluation with empirical data. however, the cmin–ρ was 0.000, the cmin/df was 2.600, and the gfi was 0.644, all of which failed to meet the acceptable criteria for empirical data assessment. consequently, the researcher refined the model by examining the “modification indices” values. following these improvements, the cmin–ρ increased to 0.079, exceeding the 0.05 threshold; the cmin/df decreased to 1.143, below the acceptable limit of 2; the gfi rose to 0.960, surpassing the minimum criterion of 0.90; and the rmsea reduced to 0.017, which is under the 0.08 benchmark. these results indicate that all four statistical indices now meet the required criteria, demonstrating that the revised structural equation model aligns well with the empirical data table 4. table 4: statistical values assessing the goodness of fit of the structural equation model, comparing before and after model improvement. statistics consideration criteria before improvement after improvement chi-square probability level (cmin–ρ) < 0.05 0.000 0.079 relative chi-squared (cmin/df) > 2.00 2.600 1.143 goodness of fit index (gfi) < 0.90 0.644 0.960 root mean square index of estimation error (rmsea) > 0.08 0.057 0.017 the hypothesis testing results analyse the causal relationships between latent variables h1: the hypothesis testing results indicate a strong influence of product components on innovation and technology, with a standardized regression weight of 0.44 at a significance level of 0.001, supporting the research hypothesis. h2: product components directly affect business alliance. the hypothesis test reveals a statistically significant impact of product components on business alliance, with agbioforum, 27(1), 2025 | 38 wimonjariyaboon et al — strategic management of the coffee processing business towards sustainable growth a standardized regression weight of 0.82 at a significance level of 0.001, confirming the research hypothesis. h3: the hypothesis testing results show a significant influence of product components on business competition at a significance level of 0.001, with a standardized regression weight of 0.32, as hypothesized. h4: the hypothesis testing findings demonstrate a significant impact of business alliance on the innovation and technology component at a significance level of 0.001, with a standardized regression weight of 0.57, supporting the hypothesis. h5: the hypothesis testing results indicate a significant influence of business alliance on business competition at a significance level of 0.001, with a standardized regression weight of 0.66, as hypothesized. overall, direct, and indirect influences in the structural equation model conducted by the standardized estimate model after improvement the product component exerted the greatest overall influence, affecting the innovation and technology component with a total standardized regression weight of 0.90 (0.44 + 0.46). this effect comprised: 1) a direct influence of 0.44 from the product component to innovation and technology, and 2) an indirect influence through the product component’s impact on the business alliance component at 0.82, which subsequently influenced innovation and technology at 0.57 (calculated as 0.82 × 0.57 = 0.46), as detailed in table 5. table 5: overall, direct and indirect influences in the structural equation model based on the standardized estimate model after improvement. component product business alliance business competition innovation and technology business alliance 0.82 0.00 0.00 0.00 business competition 0.86 0.66 0.00 0.00 innovation and technology 0.90 0.57 0.00 0.00 analysis of the relationship between strategic management variables after model improvement the analysis revealed that, following model improvement, the structural equation model for strategic management in coffee processing businesses towards sustainable growth encompassed 231 variable pairs, all demonstrating statistical significance at the 0.001 level. the final variable pair involved creating unique processed coffee products that are difficult to replicate (p10) and the capability to discontinue coffee products that fail to meet customer requirements for business growth (p24), exhibiting a correlation coefficient of 0.172. to validate the structural equation model, the researcher consulted experts engaged in strategic management within the coffee processing sector using a focus group discussion approach. the model received unanimous approval from all participants. discussion and conclusion the research findings revealed that the product component received the highest average value, underscoring its critical role in the strategic management of coffee processing businesses aimed at sustainable growth. challenges affecting product management include waste control and preserving freshness prior to consumer delivery. four key factors contribute to product success: efficiency, quality, innovation, and consumer responsibility (hung anh et al., 2019). to secure a competitive edge, particularly regarding operational efficiency and entrepreneurial production structures, it is vital to evaluate how internal production factors interact with external influences (gilramírez et al., 2024). external factors such as product adaptation for export, export activities, and related knowledge and skills demonstrate that managers with extensive export knowledge can leverage coffee adaptation strategies to enhance export potential, focusing on branding, packaging, quality, and coffee characteristics (djufry, wulandari, & villano, 2022). important individual components for strategic management include taste control and ensuring processed coffee products retain freshness until reaching consumers, reflecting customer demand for consistent, high-quality coffee. efficient waste management and product handling are essential, as consumer preference primarily centres on coffee taste. maintaining consistent, superior product quality is paramount for success. unique flavours from coffee trees cultivated in optimal climates result in high-quality beans, contributing to broad recognition and acceptance, which in turn fosters satisfaction with both products and services. this sector has also benefited from strong, ongoing support from government and private bodies (trollman et al., 2022). highquality products with distinctive flavours support effective processing and added value. hypothesis testing demonstrated that the product component directly influences the business alliance component, exhibiting the greatest overall effect with a standardized regression weight of 0.82. empirical data suggest that product attributes affect business partners, who subsequently impact competitive advantage (ho et al., 2024). strategic alliances are analysed by exploring how collaboration affects competition between partners, incorporating elements such as partner learning and social network theories. this analysis reveals how different mixes of exploratory and exploitative alliances influence intra-company competition. further hypothesis testing indicated that the product component affects the innovation and technology component, with the highest overall influence reflected by a standardized regression weight of 0.90. this finding highlights products as a crucial driver of innovation and technology according to empirical evidence. bojórquez-quintal et al. (2024) showed that innovation and technology are fundamental to company performance, with innovation capability notably enhancing product and operational efficiency. while innovation capability does not have a direct effect on financial performance, it indirectly influences overall agbioforum, 27(1), 2025 | 39 wimonjariyaboon et al — strategic management of the coffee processing business towards sustainable growth outcomes and offers opportunities to improve efficiency (kramer, bitsch, & hanf, 2021). business models that facilitate innovation and technology support the development of business processes, foster new product creation, and encourage collaboration, thereby enhancing efficiency and growth (das et al., 2024). the role of products in driving product innovation and the impact of technology management have been examined, though mainly focusing on specific practices (teran, 2024). a more comprehensive approach is needed to fully understand technology management’s overall influence on products (da costa et al., 2023). moreover, strategic management of coffee processing businesses classified by size demonstrated that large businesses assign significantly greater importance to the product, innovation and technology, business competition, and business alliance components than medium and small enterprises, a difference statistically significant at the 0.05 level. the coffee processing sector is characterised by intense competition expected to persist in response to growing coffee consumption. most operators are limited companies, followed by partnerships and public limited companies. the majority have been processing coffee for fewer than five years, primarily using domestic capital. in thailand, coffee processing commonly involves a combination of manual labour and machinery, with medium and small businesses typically managing processing internally, whereas large firms tend to outsource this function. critical challenges include raw material shortages, insufficient coffee bean supply, and elevated prices that fail to meet processing demand (dos santos et al., 2021). the rapid pace of innovation and technological advancement pressures resource-constrained businesses to adapt swiftly, accelerating product research and development to maintain competitiveness and increase product value. forecasting trends in innovation and technology is hampered by limited investment and necessitates close collaboration between multiple organisations, including consumers, within the coffee processing sector. such partnerships are essential to achieving success and mutual benefit in the industry. suggestions future research should prioritise cultivating coffee beans in sufficient quantities that satisfy demand and meet quality standards to build trust among entrepreneurs regarding processed coffee products. studies ought to examine the design and implementation of training programmes that facilitate the practical application of knowledge in coffee cultivation, ensuring farmers benefit from effective knowledge management practices. further research could focus on strengthening the capabilities of coffee processing entrepreneurs to enhance both the quantity and quality of their products. additionally, investigations should explore ways to motivate entrepreneurs to increase exports of processed coffee products, including providing guidance on targeting appropriate international markets. research aimed at improving climatic conditions to boost seed production is also recommended. moreover, future studies should consider the strategic management of coffee planting and production to guarantee an adequate supply for processing, thereby improving competitiveness within the sector. finally, comparative analyses of export marketing strategies for processed coffee products across foreign markets would be valuable for assessing thailand’s competitive position and identifying areas for further improvement. references albarracin, l. t., mas, i. r., fuess, l. t., rodriguez, r. p., volpi, m. p. c., & de souza moraes, b. 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university,almaty, kazakhstan,050040. orcid id: https://orcid.org/0009-0000-1836-7888 email: jialuoxing980@gmail.com bisenbayeva sanim phd, department of geography, land management and cadastre, faculty of geography and environmental sciences, al-farabi kazakh national university, almaty, kazakhstan,050040. orcid id: https://orcid.org/0000-0002-3770-3143 email: djusali@mail.ru rysmakhan gauhar phd candidate, department of geography, land management and cadastre,faculty of geography and environmental sciences, alfarabi kazakh national university,almaty, kazakhstan,050040. orcid id: https://orcid.org/0009-0008-4914-8272 email: gauhar1208@gmail.com keywords: agricultural intensification, land degradation, water this study examines the spatial patterns of agricultural intensification and their associations with land degradation and water resource management within agroecosystems. it focuses on various regions of china, including beijing, shanghai, guangdong province (encompassing guangzhou and shenzhen), sichuan province, and the tibet autonomous region, over a 15-year period (2008-2022). employing remote sensing and geographic information system (gis) technologies, the research maps land cover and analyses its changes during the specified timeframe. the findings reveal significant regional variation in agricultural intensification, where agricultural expansion is linked to increased production and resource consumption. local agricultural practices are shaped by climate, soil conditions, and social factors, resulting in distinct water consumption patterns that highlight water stress across agricultural areas. this underscores the need for sustainable water management, as regions with high agricultural output may face heightened water scarcity and competition for limited resources. addressing these challenges necessitates integrated strategies that consider agricultural practices, water resource management, and environmental sustainability to preserve ecosystems, enhance water use efficiency, and ensure the availability of water for both agricultural and non-agricultural needs. the study underscores the importance of spatial analysis in agricultural planning and resource management for informed and sustainable landscape management. by utilizing a rigorous analytical framework and advanced spatial analysis techniques, this research provides insights into the complex spatial relationships between agricultural intensification, land degradation, and water resource management, thereby aiding policymakers and stakeholders in tailoring solutions to mitigate the adverse effects of agricultural intensification on land and water resources. resource management, spatial analysis, gis. introduction land degradation exacerbates food insecurity and biodiversity loss. activities such as deforestation, urbanisation, unsustainable agricultural practices, and overgrazing contribute to the erosion of fertile soil, adversely impacting ecosystems globally. the ongoing decline in land quality reduces agricultural yield, biodiversity, and resilience to environmental shocks (dalantai et al., 2021; du et al., 2023). this degradation, driven by processes including soil erosion, salinization, desertification, and the loss of vegetation, poses significant challenges to sustainable development. both human activities and environmental disturbances contribute to land deterioration. major drivers of global land degradation include industrial pollution, expanding infrastructure, and intensive farming. the resulting loss of arable land and agricultural productivity threatens food security and exacerbates poverty and social inequality (karimov et al., 2023). land degradation compromises essential ecosystem services, including pollination, water purification, and climate regulation, due to its detrimental impact on biodiversity. these consequences underscore the urgent need for global efforts to halt land degradation and promote sustainable land management practices, ensuring the health and productivity of terrestrial ecosystems for future generations. intensive agricultural practices exacerbate soil degradation and pose significant risks to food security (cheng et al., 2016; halmy, fawzy, & nasr, 2020). while agricultural intensification aims to increase output per unit area to meet the demands of a growing population, such approaches can degrade land, thereby undermining ecosystems and food production. this highlights the need to understand the driving forces behind agricultural intensification and develop strategies to navigate this complex landscape. the expansion of agriculture is influenced by various environmental, social, and economic factors (karimov et al., 2023; li et al., 2020). farmers are driven to expand cultivation and boost yields by changing dietary habits, market demands, population growth, and food consumption. intensive agriculture, supported by fertilisers, technology, government incentives, and irrigation, enhances land productivity (gumma et al., 2022). this approach involves automation, monoculture, irrigation, high-yield crops, fertilisers, and pesticides, benefiting from economies of scale. agricultural intensification can increase food production, raise farmer incomes, and improve food security at community and national levels. precision agriculture further optimises resource use and minimises environmental impact. additionally, increased agricultural this research was funded and supported by young scientists grant of the ministry of science and higher education of the republic of kazakhstan "zhas galym" (grant no. ap15473166). https://orcid.org/0009-0000-1836-7888 mailto:jialuoxing980@gmail.com https://orcid.org/0000-0002-3770-3143 mailto:djusali@mail.ru https://orcid.org/0009-0008-4914-8272 mailto:gauhar1208@gmail.com agbioforum, 26(1), 2024 | 96 xing et al. — analysing the spatial patterns of agricultural intensification and its implications for land degradation… output and rural employment stimulate economic growth. however, intensification poses significant risks, including soil erosion, water depletion, pollution from pesticide use, and biodiversity loss (elbeih, 2021; meza et al., 2021). monoculture and high-input agriculture face threats from pests, diseases, and climate change, jeopardising food security. this focus may also marginalise smallholder farmers in favour of large commercial operations, displacing rural communities (rashid et al., 2023). natural agroecological methods that restore ecosystems and diversify agriculture should be promoted. to address global challenges, stakeholders can build food systems that are productive, resilient, and environmentally sustainable, with adaptive intensification playing a supportive role. agriculture influences sustainability through water management, land degradation, and intensification. while intensive farming increases output, it also depletes water and land resources (pásztor, 2021). monoculture practices and pesticide use exacerbate soil erosion, nutrient runoff, and the degradation of water quality in both terrestrial and aquatic ecosystems (muhoyi & muhoyi, 2023). to mitigate the land and water impacts associated with agricultural intensification, effective water management is essential. strategies such as integrated water resource management, water-saving technologies, and efficient irrigation systems can alleviate water scarcity and reduce environmental harm. additionally, the use of cover crops, agroforestry, and contour tillage can conserve soil and water resources. addressing the interconnected challenges of intensification, land degradation, and water management requires an integrated approach that considers the complexities of agricultural systems, ecosystems, and socio-economic factors. this necessitates multi-stakeholder collaboration, knowledge sharing, capacity building, and the implementation of sustainable land and water management practices in agricultural policy and development (ali et al., 2021; weslati, bouaziz, & serbaji, 2020). a comprehensive understanding of these interrelated issues can enable stakeholders to develop resilient and sustainable food systems, safeguarding the well-being of future generations and the health of terrestrial and aquatic ecosystems (luo et al., 2021). remote sensing and gis provide timely and regionspecific data to address complex environmental challenges such as land degradation and water management. aircraft and satellite observations facilitate the monitoring of earth's surface and atmospheric conditions. gis visualises landscape structures, relationships, and changes, enabling the tracking of land degradation, vulnerability, and transformations over time. satellite imagery and lidar data are employed to map land cover, land use, soil erosion, vegetation health, and water quality. gis integrates socioeconomic and environmental data to support spatial analysis, informing effective land and water management strategies (liang et al., 2023). china's geographic, hydrological, and ecological challenges present significant opportunities for the application of remote sensing and gis technologies. the rapid pace of urbanisation, industrialisation, and agricultural expansion has led to increased land degradation, soil erosion, and water pollution across the country. remote sensing and gis can effectively monitor these issues by tracking changes in ecosystems, soil erosion, water quality, and land use. however, despite global advancements in these technologies, their application in china remains limited. there is a shortage of geospatial and temporal remote sensing data for comprehensive land and water monitoring. although china has made substantial investments in remote sensing satellite systems, challenges related to data sharing, processing, and institutional coordination may impede effective environmental management (daba & you, 2022; malav et al., 2022; sourn et al., 2022). policymaking in china often lacks remote sensing and gis expertise. improved data access, interdisciplinary collaboration, and training in these technologies could help address land and water degradation. remote sensing and gis can empower rural and impoverished communities to manage their environment, integrating traditional knowledge and local participation. addressing these gaps can enhance china's land and water management, support sustainable development, and protect ecosystems and human well-being (salhi et al., 2023; verma et al., 2022). this study leverages remote sensing and gis to address land degradation and water management issues in china. it examines technological adoption barriers related to literature, policy, and stakeholder involvement, using empirical and case studies to identify institutional challenges. key priorities include data accessibility, processing, capacity building, and institutional collaboration. the research aims to overcome these barriers by proposing evidence-based recommendations for policy changes, data sharing, and stakeholder engagement. the findings will benefit stakeholders such as government agencies, research institutes, and ngos by informing strategies for environmental sustainability and resilience in china. this study is organised into five sections. the first section presents the introduction and background, followed by a literature review that identifies the research gap in the second section. the third section outlines the methodology and research approach employed in the study. the fourth section details the data analysis and interpretation, leading into the discussion. finally, the fifth section provides a conclusion along with practical implications, supported by appropriate justification throughout the paper. literature review experts and policymakers are increasingly concerned about land degradation due to its detrimental effects on ecosystems, human health, and sustainable development (balabathina et al., 2020; gabriele et al., 2023). the causes, impacts, and mitigation strategies for land degradation have been the subject of extensive research. key contributors to land degradation include deforestation, unsustainable agricultural practices, urbanisation, industrialisation, and climate change (abdelrahman, 2023; cheng et al., 2022; yadav et al., 2022). the removal of forests leads to soil erosion and ecological imbalances, driven by agriculture, infrastructure development, and agbioforum, 26(1), 2024 | 97 xing et al. — analysing the spatial patterns of agricultural intensification and its implications for land degradation… logging activities. practices such as overgrazing, excessive tillage, and improper irrigation further degrade water quality, soil structure, and nutrient content, ultimately diminishing ecosystem resilience and agricultural productivity. moreover, industrialisation and urbanisation result in habitat contamination, fragmentation, and destruction, adversely affecting biodiversity and landscape dynamics (abrahams et al., 2023). climate change exacerbates these issues by inducing erosion, desertification, and salinization, posing further threats to ecosystems and human welfare. the repercussions of land degradation are profound, jeopardising food security, ecosystems, and livelihoods. degraded soils are less capable of retaining water, yielding lower agricultural outputs, and are more susceptible to erosion and desertification (mashala et al., 2023; matlhodi et al., 2021). consequently, reductions in agricultural productivity, biodiversity, and ecosystem services contribute to heightened poverty, social inequality, and food insecurity, particularly among vulnerable rural populations reliant on natural resources. ultimately, land degradation exacerbates water scarcity, environmental degradation, climate change, and the challenges facing human societies (ayad et al., 2022; hidalgo-munoz et al., 2023; wang et al., 2023). academics and business leaders have proposed various strategies to mitigate land degradation and promote sustainable land management (matlhodi et al., 2021). these strategies include agroforestry, replanting, land-use planning, soil conservation, and policy interventions. practices such as terracing, cover cropping, and contour ploughing help reduce soil erosion. agroforestry, which incorporates trees and shrubs, enhances ecosystems while generating revenue. tree planting contributes to ecosystem restoration, climate change mitigation, and species protection (adenle & ifejika speranza, 2020; natsagdorj et al., 2021). effective land-use planning and policy interventions are essential for integrating conservation and environmental considerations into development initiatives. research highlights the need for coordinated action to address the complex challenges of land degradation. by increasing understanding of its causes, effects, and solutions, stakeholders can improve land management and benefit future generations (ren et al., 2020; senanayake et al., 2020). maps depicting the extent, severity, and causes of land degradation are essential for global assessments of this complex environmental issue (alam et al., 2021; prokop, 2020). the literature underscores the need for comprehensive monitoring and assessment to inform policies and promote sustainable land management. these studies utilize satellite imagery, ground observations, and modelling to track land cover, land use, soil quality, and ecosystem health. the unccd, gsif, and gladis standardize and aggregate global and regional patterns, revealing that climate change and human activities are driving soil erosion, desertification, deforestation, and biodiversity loss across the continent (kuma, feyessa, & demissie, 2022; muthuswamy & akilandeswari, 2023). advanced remote sensing and gis technologies enable the identification of intervention areas, hotspots for land degradation, and assessments of land neutrality through high-resolution mapping and spatial modelling. such mapping facilitates resource allocation, sustainable land management, and targeted interventions aimed at mitigating land degradation at local, national, and international levels. global assessments of land degradation illustrate its impacts on society, the economy, and ecosystems. the repercussions of land degradation, including air and water pollution, adversely affect agriculture, increase healthcare costs, and diminish carbon sequestration, water management, and biodiversity preservation. consequently, rural communities that rely on natural resources often experience poverty, food insecurity, and inequality (abera et al., 2020; al dulaimi, muter, & younis, 2023; kuang et al., 2022; langat et al., 2021). land degradation leads to not only economic losses but also health issues, community displacement, and conflicts over land and water resources. it disproportionately affects vulnerable populations, including women, children, and indigenous communities, contributing to cultural loss, waterborne diseases, and malnutrition. the degradation process threatens climate stability, biodiversity, soil fertility, and water quality, resulting in habitat loss, species extinction, and ecosystem disruption. furthermore, greenhouse gas emissions from land degradation and deforestation exacerbate global warming and extreme weather events. global assessments underscore the urgent need for collaborative efforts to address these complex challenges. it is crucial to consider the economic, social, and environmental impacts of land degradation in decision-making, resource allocation, and project implementation to promote sustainable land management and ecosystem integrity for future generations (ghosh et al., 2022; rufin et al., 2021; xie et al., 2020). china's rapid urbanization and economic growth intensify agricultural challenges by increasing input costs and diminishing productivity per unit of land. research indicates that while agricultural intensification enhances food production and improves rural living standards, it concurrently leads to land degradation. practices such as monoculture, excessive fertilization, and mechanization deplete soil nutrients. furthermore, studies have shown that intensive farming exacerbates issues related to water retention, organic matter loss, and soil erosion (yang et al., 2020). in china, the expansion of land for income and food crops has led to widespread deforestation, fragmenting habitats and ecosystems. studies highlight the need to balance agricultural practices with conservation efforts to safeguard ecosystem services. additionally, increased livestock production has resulted in rangeland overgrazing, soil compaction, and degradation, particularly in densely populated areas. unsustainable grazing practices and landuse changes, combined with climatic uncertainty, have contributed to desertification in northern china, jeopardizing the livelihoods of pastoral communities and their livestock (abdullah et al., 2022; adenle & ifejika speranza, 2020; natsagdorj et al., 2021; senanayake et al., 2020). chinese scientists and policymakers advocate for sustainable, agbioforum, 26(1), 2024 | 98 xing et al. — analysing the spatial patterns of agricultural intensification and its implications for land degradation… resilient, and ecosystem-friendly integrated agricultural intensification to tackle these challenges. strategies such as conservation agriculture, integrated crop-livestock systems, and agroforestry enhance soil health, biodiversity, and productivity. land-use planning, conservation incentives, and ecological restoration are essential for minimizing agricultural expansion and promoting sustainable land management. research emphasizes the need for holistic solutions that balance economic development, environmental conservation, and social equity. understanding the drivers and outcomes of agricultural intensification can help improve land management and resilience in china's agricultural landscapes (karimov et al., 2023; li et al., 2020; meza et al., 2021; vasconcelos, caspurro, & costa, 2023). remote sensing and gis have significantly advanced landuse and environmental research by enabling the mapping, monitoring, and assessment of land cover, utilization, and conditions. satellite and aerial imagery are utilized to track changes in land cover and usage across agricultural, forested, urban, and natural landscapes. in conjunction with remote sensing, gis processes, analyses, and interprets geospatial data to evaluate land degradation, environmental impacts, and ecosystem services. remote sensing is instrumental in monitoring ecosystem dynamics and regional land cover changes, including deforestation, urbanization, and agricultural expansion. these mapping efforts have informed land-use planning, natural resource management, and environmental conservation by elucidating the drivers and consequences of land-use changes (al junaibi et al., 2022; malav et al., 2022; meza et al., 2021; rashid et al., 2023). gis applications leverage spatial data layers, modelling techniques, and geospatial analysis tools to evaluate land degradation and its environmental implications. gis research addressing soil erosion, desertification, water pollution, habitat fragmentation, and biodiversity loss contributes valuable insights for policymaking. gis-based spatial modelling has enabled researchers to identify land degradation hotspots, prioritize conservation areas, and evaluate land management strategies (cheng et al., 2022; salhi et al., 2023). however, despite the advancements in remote sensing and gis technologies, land-use and environmental studies often lack socioeconomic integration. while data collection, image processing, and geographic analysis have garnered academic focus, the social, economic, and institutional drivers influencing land-use changes, and their environmental impacts have received less attention. a comprehensive understanding of the social and environmental consequences of land-use decisions is essential for preventing land degradation and promoting sustainable land management. future research should integrate socioeconomic analysis with remote sensing and gis methodologies to elucidate the complex relationships among human activities, land-use changes, and environmental transformations. the proposed framework is illustrated in figure 1, drawing upon insights from the existing literature. figure 1: research framework. methodology a comprehensive approach investigates the spatial patterns of agricultural intensification and its impacts on land degradation and water resource management across diverse agroecosystems. remote sensing and gis are employed to evaluate changes in terrain and their environmental implications. selecting study areas that encompass rain-fed, irrigated, and intensive cropping systems will provide a representative sample for analysis. high-resolution satellite imagery, such as landsat or sentinel-2, obtained over multiple time periods, is essential for documenting the stages of agricultural intensification. additionally, digital elevation models (dems), soil maps, land cover/use data, climate data, and socioeconomic data will support the research. remote sensing image processing techniques, including atmospheric correction, geometric correction, and radiometric calibration, will ensure the consistency and accuracy of time series data. land cover classification will facilitate the identification of agricultural expansion and intensification through image segmentation. for a comprehensive analysis, a gis platform will integrate all geospatial data. spatial statistics, landscape metrics, and logistic regression will assess the spatial distribution and intensity of agricultural intensification, as well as land degradation indicators. remote sensing will monitor land degradation indicators such as soil erosion, salinization, and a g ri cu lt u ra l in te n si fi ca ti o n ( a i) land degradation water resource stress remote sensing and gis technologies diverse agroecosystems agbioforum, 26(1), 2024 | 99 xing et al. — analysing the spatial patterns of agricultural intensification and its implications for land degradation… fragmentation. land cover data will inform studies on water availability and demand in water resource management, identifying areas where agricultural changes have led to increased water stress. this study utilizes remote sensing and gis to explore the geographical patterns of agricultural intensification and its environmental impacts, employing advanced spatial analysis and data integration methods to examine land degradation and water resource management (halmy et al., 2020). this study investigates the regional trends in agricultural intensification in china from 2008 to 2022 and their implications for land degradation and water resource management. it utilizes secondary data, including land cover maps, agricultural productivity, irrigation practices, soil quality, vegetation indices (ndvi), and water resources, sourced from academic literature and government agencies. over the past fifteen years, significant advancements have been made in gis spatial analytic tools, which will be employed in this analysis. additionally, the study will consider supplementary data sources and potential constraints. this comprehensive approach aims to assess the interrelationships among water resource management, agricultural intensification, and land degradation in china during the specified period. conceptual framework a. inputs: • rs: remote sensing data (e.g., satellite imagery, vegetation indices). • gis: gis data (e.g., land cover maps, soil types, hydrological features). • socio: socioeconomic data (e.g., agricultural practices, water usage). b. processes: • ai: agricultural intensification indicators (e.g., fertilizer usage, irrigation intensity). • ld: land degradation variables (e.g., soil erosion rates, vegetation cover loss). • wr: water resource management indicators (e.g., water availability, groundwater recharge rates). c. outputs: sp: spatial patterns (distribution of ai, ld, wr across agroecosystems). imp: impacts (consequences of ai on ld and wr). hot: hotspots (areas prone to significant ld or water stress). data acquisition • remote sensing data: rst (multitemporal satellite imagery), ndvit (normalized difference vegetation index). • gis data: gisi (spatial datasets on land cover, soil types, hydrological features). • socioeconomic data: socios (data on agricultural practices, water usage). pre-processing and integration • remote sensing pre-processing: ′rst′ (corrected satellite imagery), ′ndvit′ (normalized ndvi). • gis integration: gis integrated (integrated gis layers). • socioeconomic data integration: socio integrated (integrated socioeconomic data). spatial analysis • land cover change detection: lc change (change detection analysis). • spatial statistics: sa analysis (spatial autocorrelation analysis). • landscape metrics: lm metrics (calculation of landscape indices). modelling approaches • spatial regression: sr model (spatial regression model). • hydrological modelling: hm model (hydrological model, e.g., swat). • agent-based modelling: abm model (agent-based model). scenario analysis • future scenarios: sc future (development of future scenarios). • sensitivity analysis: sa sensitivity (sensitivity analysis). uncertainty analysis • uncertainty quantification: uq quantification (quantifying uncertainty). • error propagation: ep propagation (error propagation analysis). synthesis and communication • synthesize findings: sf findings (integration of results). • communicate results: cr communication (communication of results). this comprehensive methodology delineates the research process by employing equations and symbols to illustrate the various components involved. these components encompass data acquisition, pre-processing, spatial analysis, modelling approaches, scenario analysis, uncertainty analysis, as well as the synthesis and communication of findings. research analysis table 1 presents the descriptive statistics and correlations for the study variables. key variables are characterized using descriptive statistics. the land cover change in the study region is moderate at 5.20%, with a standard deviation of 7.80%, indicating substantial variability. the mean crop production is 5.40 tons per hectare, accompanied by a standard deviation of 1.30 tons, suggesting a balance between stability and volatility. soil erosion rates exhibit variation across the research area, with a mean of 1.80 tons per hectare per year and a standard deviation of 1.20 tons. furthermore, the mean agbioforum, 26(1), 2024 | 100 xing et al. — analysing the spatial patterns of agricultural intensification and its implications for land degradation… ndvi score of 0.50 and a standard deviation of 0.10 reflect consistent vegetation health and density. correlation analysis reveals interdependencies among the variables. a positive correlation coefficient of 0.42 indicates that higher rates of land cover change are associated with increased agricultural production. conversely, the strong negative correlations between soil erosion rates and land cover change percentage (-0.68), as well as ndvi (-0.75), suggest that regions experiencing higher erosion rates tend to have lower vegetation health and land cover change. additionally, a moderate positive relationship of 0.35 between crop yield and ndvi indicates that improved agricultural yields correlate with healthier vegetation. table 1 illustrates the intricate relationships among land cover change, crop yield, soil erosion, and vegetation health, providing insights into agricultural intensification, land degradation, and ecosystem health in the study area, thereby laying the groundwork for future research and interpretation. table 1: descriptive and correlation analysis. variable unit mean std. dev. land cover change (%) crop yield (tons/ha) soil erosion rate (t/ha/yr) ndvi (unitless) land cover change (%) % 5.20 7.80 1 crop yield (tons/ha) tons/ha 5.40 1.30 0.42* 1 soil erosion rate (t/ha/yr) t/ha/yr 1.80 1.20 -0.68** -0.21 1 ndvi (unitless) unitless 0.50 0.10 -0.75** 0.35* -0.48** 1 table 2 presents the spatial overlay analysis of hotspots for land cover change, irrigation intensity, ndvi, and potential land degradation. a land cover change exceeding 10% in the north china plain indicates significant land use alterations, with heavy irrigation contributing to land degradation in this region. despite these factors impacting ndvi levels, the values remain above 0.5, suggesting overall healthy vegetation; thus, the north china plain exhibits considerable potential for land degradation. in contrast, the loess plateau experiences similar rapid land cover changes but has lower irrigation levels than the north china plain. the ndvi readings below 0.5 point to concerns regarding vegetative health, likely due to soil degradation, which is prevalent in this area. the yangtze river delta shows lower land cover change, reflecting reduced land use alterations. however, extensive irrigation in this region supports intensive farming practices, with ndvi values exceeding 0.5 indicating healthy vegetation. the balanced dynamics of land use and vegetation health in the yangtze river delta suggest a moderate potential for land degradation. overall, table 2 illustrates how land cover change, irrigation intensity, ndvi, and potential land degradation contribute to identifying regional hotspots. these findings highlight the spatial distribution of areas susceptible to land degradation, facilitating targeted interventions and management strategies aimed at mitigating environmental risks and promoting sustainable land use. table 2: hotspot identification using spatial overlays. region land cover change (%) high (>10%) high irrigation intensity low ndvi (<0.5) potential land degradation hotspot north china plain yes yes no high loess plateau yes no yes high yangtze river delta no yes no medium table 3 presents a geostatistical analysis of soil salinity (mg/kg) and ndvi, employing multiple interpolation methods alongside moran's i statistic to evaluate spatial autocorrelation. the kriging interpolation yielded a statistically significant and positive moran's i value of 0.78 for soil salinity, indicating strong spatial clustering and substantial salinity levels throughout the studied area. the identified hotspots in soil salinity suggest potential land management and agricultural challenges. in contrast, the ndvi was interpolated using precipitation-based cokriging, resulting in a moran's i value of -0.21, which is not statistically significant. this lack of spatial autocorrelation indicates that ndvi values are distributed randomly across the research area. consequently, the absence of spatial clustering suggests that vegetative health is relatively evenly distributed throughout the region. overall, table 3 illustrates the spatial trends and autocorrelation of soil salinity and ndvi across the research area through geostatistical analysis. these findings contribute to a nuanced understanding of soil salinity distribution and vegetation health, facilitating the development of spatially targeted interventions and management strategies aimed at preventing soil degradation and enhancing ecosystem resilience. table 3: geostatistical analysis results. variable interpolation method spatial autocorrelation (moran's i) interpretation soil salinity (mg/kg) kriging 0.78 (significant positive) high spatial clustering of areas with high salinity levels, indicating potential hotspots. ndvi (unitless) cokriging with precipitation data -0.21 (not significant) no significant spatial clustering, suggesting random distribution of ndvi values across the study area. agbioforum, 26(1), 2024 | 101 xing et al. — analysing the spatial patterns of agricultural intensification and its implications for land degradation… table 4 presents an analysis of landscape composition and configuration across three regions, focusing on metrics such as patch size, shape index, and edge density. the average patch size, measured in hectares, varies significantly among the regions: region 1 features an average patch size of 25 hectares, indicating substantial size and contiguity; region 2 is characterised by smaller, 5-hectare patches, reflecting a more fragmented topography; while region 3 boasts the largest average patch size of 100 hectares, suggesting minimal land fragmentation. the shape index, a unitless statistic that assesses patch shape complexity, indicates that region 1 has a form index of 0.82, signifying complex patch shapes, whereas region 2 has a lower form index of 0.65, indicative of simpler shapes. region 3 exhibits the simplest patch shapes, with a shape index of 0.90. edge density, measured in metres per hectare, quantifies the length of edges per unit area, revealing that region 1 has a low edge density of 12.00 m/ha, while region 2 has the highest edge density at 25.00 m/ha, highlighting increased landscape fragmentation and edge effects. region 3, in contrast, has the lowest edge density at 5.00 m/ha, indicating fewer edges and less fragmentation. collectively, these metrics elucidate the structure and dynamics of the landscapes within the three regions, providing valuable insights for land management and conservation efforts aimed at enhancing landscape connectivity and resilience. table 4: landscape pattern analysis metrics. landscape metric description unit region 1 region 2 region 3 patch size average area of individual land cover patches. ha 25 5 100 shape index measure of patch complexity (closer to 1 = simpler shape). unitless 0.82 0.65 0.90 edge density (m/ha) length of edge per unit area. m/ha 12.00 25.00 5.00 table 5 illustrates the impact of various measures on water availability and utilisation by modelling water stress indicators across different scenarios. the current agricultural and land use practices yield a water stress index of 0.65, indicating mild water stress in several areas, suggesting that present activities may exert pressure on water resources. in scenario 1, the implementation of improved irrigation techniques decreases both water usage and the water stress index to 0.52, demonstrating that enhanced irrigation practices can alleviate water stress in the majority of regions. in scenario 2, the optimisation of land use leads to a reduction in ecological conversion, resulting in a water stress index of 0.58. this scenario predicts potential land use conflicts and moderate water stress, despite the optimisation of land allocation. the modelling of scenarios indicates a need for enhancements in both water resource management and land use planning. while scenario 1 demonstrates that improved irrigation efficiency can mitigate water stress and support sustainable agricultural practices, scenario 2 underscores the necessity for rigorous land use optimisation to effectively manage the demands of water stress and land utilisation. table 5: scenario modelling results water stress indices. scenario description water stress index interpretation baseline (2020) current agricultural practices and land use patterns. 0.65 moderate water stress in several regions. scenario 1: increased irrigation efficiency improved irrigation technologies reducing water use. 0.52 reduced water stress across most regions. scenario 2: land use optimization land allocation based on suitability, minimizing natural ecosystem conversion. 0.58 moderate water stress in some regions, potentially due to competing land use demands. table 6 presents a comparison of the costs and benefits associated with water resource management and land use planning. implementing drip or sprinkler irrigation systems can conserve agricultural water, enhance efficiency, and increase crop yields. however, this approach necessitates a substantial initial investment, ongoing maintenance, and farmer training to facilitate the adoption of new technologies. to comprehensively evaluate this intervention, data on irrigation water usage, agricultural productivity, and the costs associated with technological adoption are essential. this strategy also has implications for limiting agricultural expansion and enforcing appropriate ecosystem protection regulations, ultimately leading to improved water management and a reduction in the risks of land degradation. nevertheless, farmers facing poor land conditions and enforcement challenges may experience economic disadvantages. effective evaluation will require an analysis of land cover, soil health, and the economics of agricultural production. thus, table 6 serves as a valuable resource for conducting a cost-benefit analysis of water resource and land use planning, enabling policymakers and stakeholders to assess the benefits and costs of each intervention and to gather the necessary data to enhance sustainable resource management and land use practices. agbioforum, 26(1), 2024 | 102 xing et al. — analysing the spatial patterns of agricultural intensification and its implications for land degradation… table 6: cost-benefit analysis framework. intervention description potential benefits potential costs data needed for evaluation improved irrigation technologies implementing sprinklers or drip irrigation systems. reduced water use, improved water efficiency, potentially increased crop yields. higher initial investment costs, maintenance costs, training for farmers. irrigation water use data, crop yield data, cost estimates for technology adoption. land use zoning and regulations zoning specific areas for agriculture based on suitability, protecting natural ecosystems. reduced land degradation risks, improved water resource management. potential economic impacts on farmers currently using less suitable land, enforcement challenges. land cover data, soil quality data, economic data on agricultural production. regional land cover change significantly impacts soil erosion, salinity, agricultural production, and ecosystem services, as outlined in table 7. in the north china plain, a 20% increase in land cover change leads to a rise in soil erosion to 3.5 t/ha/yr and salinity to 1200 mg/kg. this underscores the necessity for sustainable land management, as such changes can adversely affect agricultural productivity and ecosystem services. similarly, the loess plateau experiences a moderate land cover change of 15%, resulting in increased soil erosion (2.8 t/ha/yr) and salinity (850 mg/kg). sustainable practices are vital to mitigate these effects and safeguard agricultural systems and ecosystems. in contrast, the yangtze river delta shows only a 5% change in land cover, with soil erosion at 1.2 t/ha/yr and salinity at 500 mg/kg, indicating stable soil quality. although lower land cover change reduces pressure on soil quality, ongoing monitoring is essential to identify trends and implement timely interventions to preserve soil health and productivity. overall, table 7 illustrates that land cover change influences soil quality across regions, necessitating efforts to prevent soil erosion, salinization, and other forms of degradation to maintain agricultural output and ecosystem services. table 7: impact of land cover change on soil quality sing spatial analysis. region land cover change (%) soil erosion rate (t/ha/yr) soil salinity (mg/kg) interpretation north china plain +20 3.5 1200 significant increases in land cover change are associated with higher soil erosion rates and salinization, potentially impacting agricultural productivity and ecosystem services. loess plateau +15 2.8 850 moderate increases in land cover change are linked to increased soil erosion and potential salinization risks, requiring sustainable land management practices. yangtze river delta +5 1.2 500 lower land cover change is associated with relatively stable soil quality indicators, but continued monitoring is crucial. table 8 illustrates the impact of agricultural intensification on water resource stress across various regions, focusing on irrigation intensity, the water availability index, and water usage efficiency. it assesses the potential and challenges of sustainable water management. the north china plain exhibits high irrigation intensity (1500 m³/ha) coupled with low water availability (0.458), indicating insufficient water resources. this region is at risk of water shortages due to its high irrigation demands and low water usage efficiency (0.80 kg/m³). addressing the water crisis in this area necessitates the implementation of conservation practices and effective irrigation strategies. in contrast, the loess plateau, with moderate irrigation intensity (1200 m³/ha), reports a higher water availability index (0.675) compared to the north china plain, alongside improved water use efficiency (1.20 kg/m³). these findings highlight the importance of balancing irrigation intensity with water availability and optimizing water use efficiency to sustain regional water resources. the yangtze river delta, characterized by low irrigation intensity (800 m³/ha) and a high-water availability index (0.806), indicates adequate water supply and effective water management, as evidenced by its high water use efficiency (1.50 kg/m³). sustaining water resources in this region requires ongoing monitoring to identify and address changes in water availability and usage patterns, as it currently experiences minimal water stress. overall, table 8 underscores the influence of agricultural intensification on water resource stress across regions, highlighting the necessity for localized sustainable water management practices to alleviate stress and enhance sustainability. agbioforum, 26(1), 2024 | 103 xing et al. — analysing the spatial patterns of agricultural intensification and its implications for land degradation… table 8: impact of agricultural intensification on water resource stress. region irrigation intensity (m³/ha) water availability index water use efficiency (kg/m³) interpretation north china plain 1500 0.458 (low) 0.80 high irrigation intensity coupled with low water availability and moderate water use efficiency suggests potential water scarcity challenges. loess plateau 1200 0.675 (moderate) 1.20 moderate irrigation intensity, combined with improved water availability and higher water use efficiency, indicates potential for sustainable water management practices. yangtze river delta 800 0.806 (high) 1.50 lower irrigation intensity, high water availability, and high-water use efficiency suggest a relatively lower water stress situation, but monitoring for future changes is crucial. table 9 presents the abm scenarios, detailing participants, environments, and simulated outcomes related to land degradation and water stress. the baseline scenario (2020) involves farmers and water managers reflecting current agricultural and land use practices, accounting for precipitation, temperature, soil, land cover, and water infrastructure. land degradation models assess regional erosion, salinization, and vegetation loss, while water stress simulations evaluate water availability, usage, and scarcity. scenario 1 explores reduced water consumption through enhanced irrigation practices, with farmers and water managers largely adopting new technologies. environmental factors such as weather, soil, land cover, and infrastructure influence the ecosystem. this scenario evaluates the effects of decreased water usage on erosion and salinization and its potential to improve water availability. agricultural zones assist farmers in land use, while governmental authorities enforce relevant regulations. the study examines the interactions among climate, soil, land cover, and infrastructure. simulated results indicate that protecting natural ecosystems and addressing water stress through effective land and water management can help mitigate degradation. collaboration among agriculture, water management, and governmental agencies is crucial for enhancing water efficiency and land use. similar to previous scenarios, the simulations demonstrate that integrated interventions can reduce both degradation and water scarcity. overall, table 9 outlines the actions, participants, environmental factors, and simulated outcomes of land degradation and water stress in abm scenario modelling, emphasizing sustainable land and water management strategies. table 9: scenario modelling using agent-based modelling. scenario description actors environmental factors simulated outcomes (land degradation & water stress) baseline (2020) current agricultural practices and land use patterns. farmers, water managers. climate (precipitation, temperature), soil properties, land cover. land degradation: analyse spatial patterns of erosion, salinization, and vegetation loss. water stress: assess water availability, consumption, and potential scarcity areas. scenario 1: increased water efficiency improved irrigation technologies reducing water use. farmers (adopt new technologies), water managers (facilitate access). climate, soil properties, land cover, water infrastructure. land degradation: assess potential changes in erosion and salinization due to reduced water use. water stress: analyse potential decrease in water stress and improved water availability. scenario 2: land use regulations zoning specific areas for agriculture based on suitability. farmers (adjust land use), government agencies (enforce regulations). climate, soil properties, land cover, existing infrastructure. land degradation: analyse potential reduction in degradation by protecting natural ecosystems. water stress: assess impacts on water stress depending on land use changes and potential water management strategies. scenario 3: combined approach implementing both increased water efficiency and land use regulations. farmers, water managers, government agencies. climate, soil properties, land cover, water infrastructure. land degradation: analyse potential synergistic effects in reducing degradation risks. water stress: assess potential for alleviating water scarcity through combined interventions. table 10 compares the average standardized precipitation evapotranspiration index (spei) values from 2008 to 2015 and from 2016 to 2022 to assess water stress across five regions in china, specifically beijing, agbioforum, 26(1), 2024 | 104 xing et al. — analysing the spatial patterns of agricultural intensification and its implications for land degradation… shanghai, guangdong province (including guangzhou and shenzhen), sichuan province, and the tibet autonomous region. the p-values indicate statistical significance in the trend analysis of water stress patterns. additionally, spatial hotspot categories are used to classify water stress levels in each zone. this table illustrates the temporal dynamics of water stress across different geographies, highlighting regions that experience either decreasing or increasing stress levels. figure 2 presents trends in the water stress index. table 10: changes in water stress index using spatial analysis. region average spei 2008-2015 average spei 2016-2012 trend (slope) p-value hotspot category zone 1 1.9751 1.8751 -0.0294 0.6533 decreasing stress zone 2 -0.8979 -0.9979 -0.0204 0.3886 increasing stress zone 3 -0.3377 -0.4377 -0.0398 0.4256 increasing stress zone 4 1.3355 1.2355 0.0479 0.3506 decreasing stress zone 5 1.098 0.998 -0.0481 0.3523 decreasing stress figure 2: water stress index (2008-2022). table 11 illustrates the spatial patterns, data, temporal trends, potential causes, and mitigation strategies for various land degradation indicators, including soil erosion rates, land cover change, land fragmentation, land productivity, and soc content from 2008 to 2022. the soil erosion rates range from 0.87 to 4.23 t ha⁻¹ yr⁻¹, with higher rates observed on mountain slopes (> 3.5 t ha⁻¹ yr⁻¹) compared to lower rates on plains (< 1.5 t ha⁻¹ yr⁻¹). the overall trend indicates an increase from 0.15 to 0.27 t ha⁻¹ yr⁻¹. effective soil conservation and land management practices can mitigate the impacts of deforestation, overgrazing, and unsustainable agricultural practices. land cover changes range from 3.25% to +8.75%, with highly agricultural areas experiencing increases in vegetation cover (+5.00% to +8.75%), while protected areas show slight changes (0.75% to +1.25%). the trend for land cover change is upward, ranging from 1.50% to 2.75%. implementing protected areas, sustainable forest management, and comprehensive land use planning can effectively reduce the adverse impacts of unsustainable infrastructure and land use practices. land fragmentation is characterised by edge densities ranging from 22.75 to 45.50 m/ha, with patch sizes between 25.50 and 87.25 ha. changes in land cover have led to decreases in patch size (-5.25 to -7.75 ha) and increases in edge density (+3.25 to +5.75 m/ha), reflecting the transition from extensive forested areas to smaller agricultural plots. enforcing land use restrictions that promote larger land parcels and landscape restoration can help address these issues. the productivity of land varies from 2,475.50 to 4,824.50 kg ha⁻¹ yr⁻¹, with fertile soils and favourable climatic conditions contributing to higher productivity (> 4,250.00 kg ha⁻¹ yr⁻¹), while degraded lands yield lower outputs (< 1,750.00 kg ha⁻¹ yr⁻¹). some regions experience temporary increases in productivity by 275.50 to 424.50 kg ha⁻¹ yr⁻¹, while others may see declines of 125.50 to 274.50 kg ha⁻¹ yr⁻¹. enhancing agricultural practices and soil fertility management is essential for addressing the challenges posed by unsustainable agriculture, soil erosion, and climate change. the soc content ranges from 1.27% to 2.83%, being higher in naturally vegetated areas (> 2.50%) compared to intensively cultivated regions (< 0.75%). this decline in soc is transient, ranging from -0.12% to -0.27%. improved land management and restoration of degraded lands are crucial for mitigating deforestation, soil erosion, and unsustainable land management practices. -1.5 -1 -0.5 0 0.5 1 1.5 2 2.5 zone 1 zone 2 zone 3 zone 4 zone 5 a x is t it le axis title average spei 2009-2015 average spei 2016-2022 trend (slope) agbioforum, 26(1), 2024 | 105 xing et al. — analysing the spatial patterns of agricultural intensification and its implications for land degradation… table 11: spatial patterns of land degradation indicators. indicator units data results (2008-2022) spatial patterns temporal trends potential causes mitigation strategies soil erosion rate t ha^-1 yr^-1 0.87 4.23 areas with steeper slopes (mountains) have higher values (> 3.5), while flatter areas (plains) have lower values (< 1.5) +0.15 to +0.27 deforestation, overgrazing, unsustainable agriculture sustainable land management, soil conservation land cover change % -3.25% to +8.75% areas with high agricultural potential see conversion from natural vegetation (+5.00% to +8.75%), while protected areas show minimal change (0.75% to +1.25%) +1.50% to +2.75% unsustainable land use practices, infrastructure development protected areas, sustainable forest management, land use planning land fragmentation patch size (ha), edge density (m/ha) patch size: 25.50 87.25 ha edge density: 22.75 45.50 m/ha -5.25 to -7.75 ha (patch size decrease), +3.25 to +5.75 m/ha (edge density increase) in areas with land cover change land use changes (conversion of large forests to smaller farms) land use policies promoting larger land holdings, landscape restoration land productivity kg ha^1 yr^-1 2,475.50 4,824.50 areas with fertile soils and good climate have higher productivity (> 4,250.00), while degraded lands have lower productivity (< 1,750.00) +275.50 to +424.50 in some regions, 125.50 to -274.50 in others unsustainable agriculture, soil erosion, climate change improved agricultural practices, soil fertility management soil organic carbon (soc) content % 1.27% 2.83% areas with natural vegetation cover have higher soc content (> 2.50%), while intensively farmed areas have lower content (< 0.75%) -0.12% to -0.27% unsustainable land management, deforestation, soil erosion improved land management (e.g., notill farming), restoration of degraded lands table 12 illustrates the spatial trends of agricultural intensification by examining land cover changes, crop production statistics, fertilizer application rates, irrigation water usage, agricultural infrastructure, and an agricultural intensification index. the percentage change from forests to agriculture is assessed through land cover change metrics. remote sensing imagery reveals significant expansions in cropland area, indicative of agricultural intensification. a key metric for agricultural performance is the average annual yield per unit area, with hotspot analyses and spatial distribution highlighting regional disparities in yield, reflecting variations in intensification and productivity levels. fertilizer consumption per area serves as an indicator of agricultural inputs. the spatial analysis of fertilizer application rates indicates high-intensity usage, suggesting the adoption of improved agricultural practices to enhance crop yields; however, this raises concerns regarding nitrogen runoff and potential soil degradation. additionally, per-area irrigation water usage serves as a crucial indicator of agricultural water management, with high demand for irrigation suggesting the presence of extensive irrigation systems. such practices can lead to water stress and resource depletion in agricultural development. figure 3 illustrates the changes in lulc from 2016 to 2022, employing a multi-step methodology that incorporates landsat satellite imagery, enhanced change detection techniques, and classification algorithms. change detection was performed using ccdc and landtrendr, while a random forest algorithm was employed for image classification. temporal comparisons of landsat imagery facilitated the identification of land cover and usage changes, resulting in updated lulc maps. the maps were based on the baseline clud-a data established for the study. while other figures present lulc maps for the period 2016–2022, figure 3 specifically depicts the lulc patterns for 2022. the comprehensive dataset was created by integrating the clud-a dataset from 1980 to 2015 with the lulc maps from 2016 to 2022, ensuring a continuous analysis of land usage and cover trends. agbioforum, 26(1), 2024 | 106 xing et al. — analysing the spatial patterns of agricultural intensification and its implications for land degradation… figure 3: annual land use/land cover (lulc) maps of 2022 in china. greenhouses and irrigation systems exemplify the mechanization and modernization of agriculture. spatial analysis indicates that regions characterized by high agricultural intensification possess more advanced infrastructure, suggesting significant investments in technology aimed at enhancing production. a composite agricultural intensification index has been developed to quantify agricultural intensification across different areas using various indicators. geographic and hotspot index values identify locations with pronounced agricultural intensification, where diverse strategies converge, potentially leading to negative impacts on the environment and society. these indicators illustrate the intricate geographical dynamics associated with agricultural intensification, encompassing changes in land use, input utilization, technological advancements, and their implications for food production, environmental sustainability, and resource management. table 12: spatial patterns of agricultural intensification. indicator description units data source data results land cover change conversion of natural vegetation (e.g., forests) to cropland % remote sensing imagery +5.25% to +8.75% crop yield data average annual yield per unit area kg ha^-1 yr^-1 agricultural statistics 2,475.50 -4,824.50 fertilizer application rates amount of fertilizer applied per unit area kg ha^-1 yr^-1 agricultural statistics 125.50 274.50 irrigation water use volume of water used for irrigation per unit area m^3 ha^-1 yr^-1 remote sensing, field data 1,275.50 2,824.50 agricultural infrastructure presence and density of infrastructure (e.g., greenhouses, irrigation systems) points/lines/polygons remote sensing imagery, gis data increased density in areas with high agricultural intensification agricultural intensification index combined indicator representing the level of agricultural intensification unitless derived from other indicators 0.25 0.75 table 13 presents trends in regional water usage, precipitation, groundwater availability, and the water stress index. the water consumption indicator tracks agricultural water use per unit area, revealing regional variations in water usage through geographic distribution and hotspot analysis. high consumption areas signify intensive irrigation and resource depletion, while low consumption areas may indicate efficient management or minimal agricultural activity. average annual precipitation serves as a measure of water availability, with climate data showing disparities in agricultural rainfall and associated water issues. groundwater supply is vital for irrigation, agbioforum, 26(1), 2024 | 107 xing et al. — analysing the spatial patterns of agricultural intensification and its implications for land degradation… with spatial analyses estimating groundwater depth; shallow tables facilitate irrigation, whereas deeper tables complicate sustainable management. the water stress index assesses agricultural water stress based on usage, precipitation, and groundwater levels, highlighting variations from low to high stress. areas of high-water stress may experience scarcity and resource competition, emphasizing the necessity for effective water management, sustainable irrigation practices, and adaptive strategies to enhance agricultural resilience. table 13: spatial patterns of water resource management. indicator description units data source data results water consumption volume of water used for agricultural purposes m^3 ha^-1 yr^-1 remote sensing, field data 765.30 1,755.30 precipitation average annual precipitation mm yr^-1 climate data 500.00 1,000.00 groundwater availability depth to groundwater table m groundwater monitoring data, gis data 5.00 20.00 water stress index combined indicator representing the level of water stress on agricultural systems unitless derived from other indicators 0.25 0.75 figure 4 illustrates a comprehensive desertification indicator system designed for various geographical and temporal scales. this framework aims to enhance the completeness and effectiveness of desertification monitoring, addressing issues like salinization, vegetation reduction, and soil erosion. it incorporates diverse indicators to analyse desertification processes across local, regional, and broader contexts. the hierarchical approach evaluates desertification through pressure, state, impact, and response indicators, considering both biophysical and socioeconomic factors. utilizing remote sensing and field surveys, the framework ensures accuracy in assessing desertification, with remote sensing providing spatial and temporal continuity while field surveys validate indicators. this multi-type, multi-scale, and multi-dimensional system emphasizes the integration of remote sensing and field monitoring to effectively analyse and respond to desertification challenges. figure 4: the indicator framework for soil desertification monitoring. discussion this study analysed the spatial dynamics of agricultural intensification, land degradation, and water resource management across various agroecosystems from 2008 to 2022. utilizing climate data, farm statistics, gis data, and remote sensing images, it assessed the impacts of agricultural intensification on land and water resources. the study mapped land cover changes, developed an agricultural intensification index based on crop production, fertilizer, and irrigation use, and calculated indicators for land degradation and water stress. forecasting models evaluated soil erosion risk and spatial autocorrelation analysed regional patterns. the findings highlight the intricate relationships between agricultural intensification, land degradation, and water resource agbioforum, 26(1), 2024 | 108 xing et al. — analysing the spatial patterns of agricultural intensification and its implications for land degradation… management, aiding stakeholders and policymakers in formulating sustainable management policies. table 1 presents descriptive statistics and correlation analyses for land cover change, agricultural yield, soil erosion rate, and the ndvi across the research regions. the table details the mean, standard deviation, and correlation coefficients for these variables, illustrating the interrelationships and potential implications for agricultural systems. it reveals that increased percentages of land cover change are associated with higher crop yields, while simultaneously correlating with decreased soil erosion rates and ndvi values. this suggests tradeoffs between agricultural development and environmental degradation. these findings emphasize the necessity of integrating agricultural development with sustainable land management practices to mitigate adverse environmental impacts. table 2 illustrates the spatial distribution of hotspots characterized by high lcc, irrigation intensity, low ndvi, and potential land degradation. these hotspots are critical for prioritizing conservation and management efforts to mitigate the impacts of agricultural intensification on land and water resources. regions such as the north china plain and loess plateau exhibit land cover change and irrigation intensity linked to agricultural expansion, leading to increased vulnerability to soil erosion and water scarcity. the analysis highlights regional disparities in hotspot categories, indicating the necessity for tailored management strategies. in contrast, the yangtze river delta displays moderate land cover change and irrigation intensity, suggesting different variables may contribute to medium levels of land degradation. table 3 presents the results of kriging and cokriging interpolation for soil salinity and ndvi across various regions. the spatial autocorrelation values (moran's i) indicate geographical clustering or dependency, which can negatively impact land and ecosystems. the study identifies regional high-salinity clusters, suggesting that soil salinization hotspots may harm agricultural soil fertility and productivity. kriging interpolation effectively measures soil salinity, aiding in targeted salinization risk management. in contrast, cokriging with precipitation data yields a non-significant moran's i value, indicating a lack of clustering in ndvi values across the study area. this suggests that ndvi may not reflect regional patterns or environmental influences on vegetation health and productivity. additionally, spatial cokriging of ndvi data highlights risks related to vegetation and land degradation. table 4 presents the landscape pattern analysis of the study region, focusing on patch size, form index, and edge density. these metrics influence ecosystem function and resilience to land degradation. larger land cover patches signify continuous landscapes, while the loess plateau, with the smallest average patch size, indicates fragmentation. the north china plain exhibits the highest form index, suggesting simpler topography due to agricultural practices. edge density measures habitat fragmentation, with the north china plain showing the highest density, reflecting environmental fragmentation from intensive agriculture. overall, the analysis highlights spatial diversity in land cover patterns and underscores the risks of land degradation, informing targeted conservation and management strategies to enhance ecosystem resilience and sustainability. table 5 presents baseline and two alternative water stress indices, illustrating the impact of management actions on agricultural water stress. the baseline scenario indicates moderate water stress resulting from current agricultural practices, highlighting challenges in water resource management. scenario 1 improves irrigation efficiency, reducing water stress across most regions and demonstrating how technology can enhance water efficiency. scenario 2 optimizes land use by designating agricultural areas, resulting in moderate water stress in some regions and emphasizing trade-offs between land use planning and water resource management. the scenario modelling in table 5 underscores the need for alternative strategies to manage agricultural water stress, aiding policymakers and stakeholders in promoting sustainable water management and climate resilience in agriculture (rashid et al., 2023). table 6 presents a cost-benefit analysis of two interventions aimed at reducing land degradation and promoting sustainable land management. the first intervention involves installing sprinklers or drip irrigation systems, which can conserve water, enhance agricultural efficiency, and increase production. however, farmers may require financial support, maintenance, and training for technology adoption. evaluating this intervention necessitates data on irrigation water usage, agricultural output, and associated costs. the second intervention focuses on land use zoning and restrictions to protect natural habitats and agricultural areas, potentially improving water management and soil quality, although it may economically impact farmers on marginal lands and complicate enforcement. this intervention requires data on land cover, soil quality, and agricultural economic performance. table 6 highlights the need to balance the benefits and drawbacks of each strategy to effectively combat land degradation and enhance sustainable land management, providing insights for policymakers and stakeholders to make informed decisions (verma et al., 2022). table 7 presents a geographical analysis of the impact of land cover change on soil quality, highlighting changes in land cover percentage, soil erosion, and salinity. in the north china plain, land cover modifications have led to increased soil erosion and salinization, negatively impacting agricultural productivity and ecological services. similarly, the loess plateau experiences enhanced soil erosion and salinization due to minor land cover changes. effective land management is essential to mitigate soil degradation and maintain ecological integrity in rapidly changing landscapes. in contrast, the yangtze river delta exhibits stable soil conditions and minimal land cover change; however, monitoring is crucial due to urbanization's impact on soil resources. overall, the findings underscore the need for proactive soil health management in agriculture, enabling policymakers and land managers to promote sustainable land use and conserve soil resources for future generations. agbioforum, 26(1), 2024 | 109 xing et al. — analysing the spatial patterns of agricultural intensification and its implications for land degradation… table 8 illustrates regional water resource stress due to agricultural intensification, focusing on irrigation intensity, water availability index, and water use efficiency. the north china plain is likely experiencing water scarcity due to high irrigation intensity and low water availability and efficiency, suggesting that intensive farming is straining local water resources. in contrast, the loess plateau maintains effective water management with moderate irrigation intensity and improved water availability and efficiency. the yangtze delta exhibits lower irrigation intensity, good water availability, and efficient water use, resulting in minimized water stress. ongoing monitoring is essential for sustainable water resource management. overall, table 8 highlights the connection between agricultural development and water resource stress, underscoring the importance of enhancing productivity and conservation efforts. improving water use efficiency and implementing sustainable management practices can help mitigate the environmental impacts of agricultural intensification and bolster resilience against water scarcity. table 9 presents scenario simulations of regional water stress indices, detailing the current agricultural and land use situation in the 2020 baseline, which indicates significant water stress in several areas. scenario 1 demonstrates reduced water consumption through improved irrigation practices, alleviating water stress in most regions. scenario 2 optimizes land use by designating appropriate agricultural areas, resulting in reduced water stress in some regions, although mild stress persists due to competing land use demands and enforcement challenges. table 10 shows the evolution of the regional water stress index from 2008-2015 to 2016-2022, including average spei, slope, and statistical significance across five main zones in china. while zone 1 experiences a slight, statistically insignificant decrease in water stress, zones 2 and 3 show similar trends without significant changes. conversely, zones 4 and 5 exhibit a gradual increase in water stress. overall, these tables highlight the varying water stress conditions and the need for effective water management strategies. table 11 summarizes trends in soil erosion, land cover change, fragmentation, productivity, and soc concentration from 2009 to 2022. it indicates that annual soil erosion contributes significantly to soil degradation, with mountain regions experiencing more erosion than plains, often linked to deforestation and unsustainable agricultural practices. changes in land cover types reflect the replacement of natural vegetation by farming activities, with agriculture impacting more than just protected areas. effective conservation and land use planning can mitigate land degradation. increased edge density and reduced patch sizes indicate habitat fragmentation due to intensive agriculture. policies should prioritize landscape restoration and land acquisition to enhance ecosystems. land productivity, measured in kilograms per hectare per year, is positively influenced by favourable soil conditions, while sustainable agriculture and soil fertility management help protect and improve land. finally, soc concentrations are lower in intensively farmed areas compared to natural ecosystems, highlighting the benefits of no-till farming and land restoration for soil health (rufin et al., 2021). table 12 presents data on agricultural intensification from 2009 to 2022, focusing on infrastructure density, aii, land cover change, crop yield, fertilizer rates, and irrigation water use. the report highlights the environmental implications of regional agricultural intensification. land cover changes from natural vegetation to crops can enhance farming but may also reduce biodiversity. while intensive agriculture boosts crop yields in some areas, it can lead to land degradation and soil erosion in others. the findings underscore the necessity for sustainable farming practices and soil conservation to maintain productivity. high fertilizer usage poses risks of soil contamination, necessitating optimization to minimize environmental harm. additionally, the demand for irrigation contributes to water stress. effective management strategies for irrigation and greenhouse practices are essential for water conservation. the aii varies by region, indicating that socioeconomic and environmental factors significantly influence agricultural intensification. local agricultural expansion and sustainable land management are crucial for balancing productivity and environmental health (ghosh et al., 2022). table 13 presents the spatial patterns of regional water resource management indicators from 2008 to 2022, encompassing water use, precipitation, groundwater availability, and the water stress index. analysing the distribution and stress of water resources is crucial for sustainable water management and agricultural planning. annual agricultural water use is quantified in cubic meters per acre, revealing significant consumption in certain areas, which indicates water stress and competition for resources. to mitigate water scarcity, the implementation of effective water management strategies and water-saving technologies is essential. table 13 also includes average annual precipitation data, measured in millimetres per year, highlighting the variability in rainfall across regions and its implications for water resource allocation and agricultural planning. groundwater availability, assessed through various metrics, reflects regional recharge rates and aquifer stability, underscoring the importance of sustainable groundwater management and depletion prevention. the water stress index evaluates regional agricultural water stress using multiple indicators, with variations attributable to complex supply, demand, and environmental factors. given climate change and increasing water needs, integrated water resource management systems are necessary to enhance conservation, efficiency, and resilience. policymakers and stakeholders can effectively address water scarcity and promote sustainable development by understanding the spatial dynamics of water resources and implementing targeted interventions and adaptive strategies (du et al., 2023). table 13 presents the geographical patterns of water resource management indicators in china from 2009 to 2022, highlighting regional disparities in water usage, precipitation, groundwater availability, and stress levels. areas with intensive agriculture, such as the north china plain, exhibit significant water demand and stress, underscoring the vulnerability of agricultural systems to water scarcity. agbioforum, 26(1), 2024 | 110 xing et al. — analysing the spatial patterns of agricultural intensification and its implications for land degradation… in contrast, increased precipitation and groundwater availability in the yangtze delta contribute to alleviating water stress in that region. to address water scarcity in china’s water-stressed areas, there is a critical need for sustainable water management practices and enhanced water use efficiency, which will ultimately foster resilience and sustainability in agricultural and other sectors. furthermore, studies on spatial water resource management indicators significantly contribute to policymaking in china. policymakers can enhance water security and resilience in vulnerable regions characterized by high water stress and limited groundwater availability by investing in water-saving technologies, improving irrigation infrastructure, and implementing groundwater recharge initiatives. the research emphasizes the importance of considering climate, land use, and water consumption in integrated water resource management. by promoting sustainable water management practices and adaptive strategies, china can mitigate water shortages, enhance agricultural productivity, and stimulate socioeconomic development. conclusion this study explores the intricate relationship between agricultural development, land degradation, and water management in china from 2008 to 2022. utilizing gis and remote sensing, it reveals regional disparities in land cover change, crop yield, and irrigation intensity, particularly between the north china plain and the yangtze delta, highlighting the need for targeted sustainable agricultural interventions. the findings identify environmental pressures, such as increased soil erosion and water use, that support china’s conservation goals. the research advocates for spatially explicit land and water management strategies and tailored solutions, including improved irrigation practices, to mitigate land degradation and water stress. ultimately, it provides valuable insights for policymakers to enhance soil conservation and ecosystem resilience, aligning with china’s ecological civilization and green development objectives while fostering sustainable agricultural practices. despite its strengths, this study has limitations. concerns regarding the consistency and accuracy of secondary data sources may introduce bias. additionally, the geographic resolution and lack of supplementary data could hinder detailed research on agricultural and soil degradation using remote sensing imagery. moreover, spatial analysis alone cannot establish causality due to the complex interplay of various factors influencing agricultural intensification and land degradation; thus, field observations and transdisciplinary approaches are essential for validation. to address these challenges and enhance research in this area, several strategies can be implemented. establishing coordinated data-sharing and monitoring networks could improve the quality and accessibility of spatial analysis data. incorporating field data and stakeholder input would enrich spatial analysis by providing socio-economic insights and local perspectives on agricultural intensification and land degradation. furthermore, addressing the intricate feedback loops between agriculture, land degradation, and water resource dynamics could benefit from machine learning and agent-based modelling techniques. finally, collaboration among scholars, policymakers, and communities is crucial for developing effective and sustainable land and water management policies both in china and globally. theoretical and practical implications this research supports policymakers, land managers, and agricultural and environmental stakeholders by utilizing remote sensing and gis to monitor the impacts of agricultural intensification on land degradation and water resources. it identifies environmental stress hotspots to inform targeted interventions, while spatial indicators like the agricultural intensification index facilitate evidencebased policymaking and adaptive management. the study highlights regional agricultural intensification trends and their environmental implications, guiding sustainable agriculture and environmental protection strategies. by identifying areas with high irrigation intensity and water stress, it promotes the adoption of water-saving technologies. additionally, analysing land degradation hotspots aids in preserving ecosystems and informing soil conservation and land-use planning. ultimately, this research advocates for sustainable agricultural and environmental management practices in china and other challenging regions. the agricultural intensification index and water stress metrics evaluate the impacts of agricultural practices on land and water resources, leading to theoretical insights into agricultural transformation and environmental degradation. this research promotes sustainable land management and resource conservation while identifying hotspots of land degradation and water stress, along with mitigation measures. by integrating environmental science, geography, and agricultural economics through multidisciplinary approaches and spatial analysis, the study advances theoretical frameworks on the intricate connections between human activity, environmental change, and sustainable development, extending its relevance beyond china. references abdelrahman, m. a. e. 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(2020). spatiotemporal characteristics of land degradation in the fuxian lake basin, china: past and future. land degradation & development, 31(16), 2446-2460. doi: https://doi.org/10.100 2/ldr.3622 https://doi.org/10.1038/s41598-023-40135-3 https://doi.org/10.3390/rs12244063 https://doi.org/10.3390/rs12244063 https://doi.org/10.3390/su14074066 https://doi.org/10.7203/leeme.0.26865 https://doi.org/10.21275/sr221122124128 https://doi.org/10.21275/sr221122124128 https://doi.org/10.3390/rs15153726 https://doi.org/10.1007/s12517-020-05664-5 https://doi.org/10.1007/s12517-020-05664-5 https://doi.org/10.3390/land9010028 http://transnationalmarket.com/menu-script/index.php/transnational/article/view/197 http://transnationalmarket.com/menu-script/index.php/transnational/article/view/197 http://transnationalmarket.com/menu-script/index.php/transnational/article/view/197 https://doi.org/10.1002/ldr.3622 https://doi.org/10.1002/ldr.3622 agbioforum, 26(3): 53-61. ©2024 agbioforum meng an. — sustainable strategies for creating aesthetically relevant fish leather products sustainable strategies for creating aesthetically relevant fish leather products meng an* art and design department,international college, krirk university bangkok,thailand,10220. orcid id: https://orcid.org/0009-0003-3941-7030 email: am666@163.com the future competitiveness of the fashion industry, particularly within the leather sector, will be significantly influenced by the ability to balance sustainability with luxury, addressing both environmental challenges and ethical sourcing practices. this study aimed to formulate a strategy for designing aesthetically appealing fish leather products underpinned by sustainability principles, with a focus on reducing reliance on animal-based leather and mitigating the associated environmental impacts of agricultural and animal husbandry practices. key environmental concerns include deforestation for grazing, greenhouse gas emissions, and the water-intensive processes involved in livestock rearing for leather production. a review of the literature on fish leather production provided insights into sustainable innovations within the industry. building on this knowledge and collaborating with experts from a local fish leather manufacturing facility, the researcher developed two aesthetically appealing fish leather products (handbags) using environmentally friendly techniques such as vegetable tanning and natural dye printing. testing conducted on these products highlighted that fish leather production rooted in sustainability yields durable, distinctive items with exceptional aesthetic appeal and material quality. these attributes resonate strongly with the increasing segment of environmentally conscious consumers. the findings of this project underscore the potential of sustainable leather alternatives to reduce the environmental impacts traditionally associated with livestock-derived leather. keywords: fish leather, sustainability, vegetable tanning, market potential, consumer perception introduction the fish leather industry is among the oldest industries, originating from the ancient traditions of arctic societies residing along coastal and riverine areas. prior to the advent of synthetic fibres, evidence indicates that arctic communities in regions such as siberia, alaska, japan, and scandinavia utilised fish skin as a primary raw material for leather products, clothing, and accessories (dreesmann, 2024; palomino & defeo, 2022). however, the advent of modernity introduced textiles such as silk and cotton, which gradually displaced fish skin as a preferred material. this shift, coupled with overfishing, increased water pollution, and the transition to farming practices among arctic indigenous populations, contributed to the decline of the fish leather industry (palomino & defeo, 2022). although the craft of fish leather production experienced a significant decline with the emergence of synthetic raw materials and alternatives like cotton and silk, the contemporary fashion industry is increasingly driven by sustainability as a catalyst for innovation (dreesmann, 2024; friedrik, 2018; palomino & defeo, 2022). fish leather presents promising potential as a natural material capable of replacing conventional leather in folk arts and crafts. it is recognised for its environmentally friendly characteristics, offering artisans and manufacturers new possibilities for creating products with unique textures and appearances unattainable with traditional animal-derived leather. moreover, fish skins utilised in fish leather production contribute significantly to reducing costs within the fishing industry while minimising environmental pollution by advancing circular economy practices. as sustainability becomes a central element of consumer consumption patterns, fish leather emerges as a revolutionary material in the fashion industry. its lower resource usage, distinct attributes, and ability to meet aesthetic and environmental demands position it as a viable alternative that challenges conventional norms in leather production. problem statement the escalating adverse effects of climate change and global warming observed globally have compelled businesses to transform their operational models by embedding sustainability principles into their processes and products to mitigate environmental impacts (doppelt, 2017; hoffman & change, 2007). concurrently, consumers are increasingly adopting environmentally conscious attitudes, with many demonstrating a preference for companies and products that prioritise sustainability and ethical practices throughout their production processes and value supply chains (kumar et al., 2021). in response to these shifts, the fashion industry is anticipated to align with evolving consumer priorities by integrating sustainability into its practices and developing innovative, high-quality products that acknowledge and address the leather industry's environmental impact. this necessitates the adoption of sustainable materials and processes within the leather industry, ensuring minimal ecological and societal repercussions (moktadir et al., 2020; omoloso et al., 2020). although the leather sector, a critical component of the fashion industry, is expected to adopt sustainable production strategies, evidence indicates that the raw https://orcid.org/0009-0003-3941-7030 https://orcid.org/0009-0003-3941-7030 mailto:am666@163.com agbioforum, 26(3), 2024 | 54 meng an. — sustainable strategies for creating aesthetically relevant fish leather products materials and production processes currently in use remain largely unsustainable (see table 1). approximately 65% of modern leather is derived from animal sources, while over 20% consists of synthetic alternatives (varkki, 2024). in contrast to animal and synthetic leather production, fish leather production is recognised as more environmentally friendly, as its raw materials are by-products of the fishing industry. animal and synthetic leather production contributes significantly to environmental degradation, including pollution, hazardous waste generation, and substantial water and energy consumption (dreesmann, 2024; mathew, 2023). the environmental footprint of raising animals for leather includes extensive water usage, greenhouse gas emissions, and land degradation (dreesmann, 2024). by comparison, fish leather production employs eco-friendly tanning methods, such as vegetable tanning, which avoids the use of harmful chemicals. this contrasts sharply with conventional leather tanning processes for animal leather, where chromium salts are utilised despite their detrimental social and environmental consequences (dreesmann, 2024; mathew, 2023). table 1: comparison of the environmental footprint of fish leather, animal leather, and synthetic leather. environmental factor synthetic leather production animal leather production fish leather production emissions of greenhouse gases high, since it is primarily produced from petroleum products high due to methane produced from animal waste. lower as it is based on the byproducts of fishing industry sourcing of raw materials it is sourced from petroleum, which results in high ghg, especially during production keeping animals and their waste products has huge impact on the environment due to methane production, huge land usage, and destruction of vegetation fish byproducts, hence no additional fishing is needed amount of water consumed the level of water consumption is moderate high levels low water consumption as the processes do not require much water toxicity of chemicals used the production of synthetic polymers results in high levels of toxicity. high levels of toxicity, especially when conventional tanning methods, including chrome tanning, are used low, especially among sustainable-driven companies which use vegetable tanning amount of energy consumed energy consumed is high high low energy consumption amount soil, land, and water pollution pollution is high high because of livestock farming low level of water consumption since the processing technique is not water-intensive amount of waste released to the environment high, most of which is nonbiodegradable, hence negatively contributing to the environment high as it includes both animal waste and chemicals used low, as it uses fish waste from the fishing industry; the waste is highly biodegradable land usage low land usage requires large tracts of land to rear animals low note: author’s compilation based on varkki (2024), mathew (2023), and dreesmann (2024). in addition to its environmental benefits, fish leather is stronger and more durable than many animal-derived leather products due to the cross-fibre structure of fish skin. its unique texture and patterns further enhance its aesthetic appeal, offering a distinctive and attractive alternative (dreesmann, 2024). despite these strong sustainability credentials, fish leather production remains underutilised in the leather industry. this limited adoption may stem from a lack of sufficient knowledge regarding sustainable fish leather production techniques in the fashion market or a broader lack of motivation to prioritise sustainability within the industry. this project aims to address these challenges by showcasing how sustainability-driven innovation can facilitate the development of a diverse range of aesthetically appealing fish leather products that offer superior quality and uniqueness. objectives aligned with the identified gap, this study aims to accomplish the following objectives: 1. to develop a strategy for designing aesthetically appealing fish leather products underpinned by sustainability principles. 2. to evaluate consumer perceptions and reactions to the developed fish leather products to assess their acceptability and aesthetic relevance. literature review definition and explanations on fish leather and sustainability sustainability-driven fish leather production remains a relatively underexplored area of research, resulting in its limited application within the leather industry (maina et al., 2019). although numerous studies have examined sustainability efforts in leather manufacturing processes, there is a notable lack of research focusing on fish skin as a material. this gap highlights a critical opportunity for further investigation into sustainable fish leather production. agbioforum, 26(3), 2024 | 55 meng an. — sustainable strategies for creating aesthetically relevant fish leather products fish skin benefits as potential materials for environmentally friendly products research on the environmental impact of fish leather production highlights several notable benefits. utilising fish skin as a raw material effectively recycles fish waste, addressing the global issue of fish production waste, which is estimated to reach 50% of the total fish caught (arvanitoyannis, 2010). when fish skin is discarded and decomposes in marine environments, it can disrupt oxygen levels and contribute to the spread of diseases. fish leather production offers a sustainable solution to these challenges, particularly in coastal regions. additionally, fish leather manufacturing facilities are often located near sources of raw materials, reducing the need for longdistance transportation by rail or road. this proximity significantly lowers greenhouse gas (ghg) emissions associated with transportation, further enhancing the environmental benefits of fish leather production (palomino & defeo, 2022). sustainability aspects in leather production the sustainability of fish leather production primarily depends on the tanning and dyeing processes used during production. bio-tanning has been identified as a viable alternative to the traditional chrome-based tanning process, as highlighted by duraisamy et al. (2016). this shift towards bio-treatment, which involves using plant or animal tannins as tanning agents, offers a potential solution to the environmental issues associated with synthetic tanning methods. however, prior studies still employed chrome tanning, which poses significant sustainability concerns due to the harmful chemicals involved in the process. fish leather-types, characteristics, and applications fish leather, which will be discussed and analysed further, possesses distinct structural and physical characteristics that make it suitable for leather manufacturing, including the production of fish skin bags and shoes. zengin et al. (2015) and maina et al. (2019) highlighted that while fish skin is not commonly used, it is hard, thin, and highly durable attributes that are highly desirable for leather goods. additionally, the unique structure of fish skin enables the creation of products with superior wear resistance and a stylish appearance. as such, fish leather holds significant potential as a sustainable material in the ecology-focused fashion industry. problems and market take-up despite the advantages of fish leather production, its adoption within the fashion industry has been limited. this reluctance can be attributed, in part, to research constraints and the lack of exploration into other aesthetically relevant designs that could enhance market competitiveness (palomino & defeo, 2022). this paper identifies that while the acceptability of fish leather products is often determined by their material sustainability, the aesthetic qualities of these materials have rarely been explored in research. additionally, many previous studies on sustainable fish leather tanning have used chrome tanning methods (wairimu et al., 2020), suggesting that the current study should focus on employing sustainable tanning and dyeing processes, such as vegetable tanning and natural dyeing. research gap and future directions although fish leather products are relatively new to the market, there has been limited research that simultaneously considers both the economic and artistic perspectives. furthermore, few studies have focused on assessing consumer attitudes to enhance the acceptance and demand for sustainably produced fish leather products. this research aims to bridge that gap by adopting environmentally sustainable methods of tanning and dyeing fish skins, resulting in attractive and marketable fish leathers. methodology as previously stated, the objective of this paper was to design a strategy for creating aesthetically relevant fish leather products based on sustainability principles. to achieve this, the researcher explored literature on the use and processing of fish skin, as well as printing methods that contribute to the aesthetic value of such leather products. this preliminary research provided insights into the environmental benefits of fish leather and its potential as an alternative to other types of leather in the fashion industry. the acquired knowledge was further enriched through personal observations and practical experimentation at a local fish leather manufacturer. this collaboration facilitated a deeper understanding of the processes involved in transforming fish skin into leather, the printing techniques employed, and strategies for enhancing the aesthetic appeal and properties of fish leather products. the interaction with the manufacturers provided crucial insights into the acceptance of this alternative leather product within the fashion industry and its overall performance. after developing the first leather product (a bag) and testing it with various digital printing technologies, it was observed that water-based dyes exhibited poor adherence to fish leather (see figure 1 below). through multiple printing tests, guided by the expertise of the printing specialists at the fish leather manufacturer, the desired printing properties such as absorption, texture, and appearance were successfully achieved. this process involved carefully balancing pressure and temperature, as well as selecting the appropriate printing technology and techniques. additionally, the dyes chosen for the process were more environmentally friendly. after successfully creating the desired aesthetic fish leather products, the researcher organised exhibitions to gather feedback from consumers. this provided valuable insights into their perceptions of the products, including aspects such as quality, appearance, uniqueness, cost, and other factors influencing their purchasing intentions in the fashion industry. the findings and feedback collected during these exhibitions are included in this report. agbioforum, 26(3), 2024 | 56 meng an. — sustainable strategies for creating aesthetically relevant fish leather products figure 1: the water-based dyes resulted in non-uniform penetration. process followed to develop the fish leather products the transformation of fish skins into a luxurious material is a complex process that combines modern innovations with traditional techniques to ensure durability and quality while minimizing the environmental impact of production. the steps involved in processing fish leather products are summarised in table 2 and illustrated in figure 2. table 2: major steps followed in processing of fish skin to develop leather products. step description 1. sourcing the fish skin the entire process commences with sourcing the fish skin, a byproduct of the fishing industry. the fish skins mostly come from fish processing plants, which are involved in extracting meat and other edible components of fish. the commonly used fish skins come from tilapia, cod, and salmon because of their big size, texture, and strength. 2. cleaning and preparation after collection as waste from the fish processing factory, the fish skins are thoroughly cleaned to remove flesh, scales, and other residues. cleaning ensures the purity of the material, which ultimately determines the quality of the final product. once cleaned, the skins are softened by soaking them in a solution in preparation for the tanning process 3. tanning tanning is the main step as it transforms the fish skins into durable leather. essentially, this step involves treating the skins with tanning agents to prevent them from decomposition and prepare them for further processing. different turning methods are used, including vegetable tanning (which involves natural plants) and chrome tanning; this project used vegetable tanning (discussed later). 4. dyeing and finishing this step enhances the aesthetic value of fish leather products, as fish leather can be dyed into a wide range of colours and include different printing designs. for sustainabilityconscious companies, the dyes used are natural to reduce the ecological footprint of the production process. the finishing process entails adding a protective coating or embossing patterns and other treatments that intend to improve the durability, texture, and appearance of the fish leather. 5. quality control and dispatch this step ensures that each piece meets the industry's quality standards. it also assesses consistency in colour, texture, strength, and defects before dispatching the leather material to manufacturers, designers, and artisans globally. note: adapted from dreesmann (2024). figure 2: fish leather production process. agbioforum, 26(3), 2024 | 57 meng an. — sustainable strategies for creating aesthetically relevant fish leather products fish-leather tanning method (vegetable tanning) tanning is a critical step in determining the quality and other desired properties of leather products. for this project, the vegetable tanning method was employed, which accounts for about 10% of all leather products (friedrik, 2018). this process uses natural tannins to alter the protein structure in fish skin, turning it into leather. the organic substances used in vegetable tanning not only help preserve and strengthen the leather but also impart color to the hide (abid et al., 2020). vegetable tanning typically involves plant materials with high tannin concentrations, such as roots, leaves, and barks, with common tree species including oak, willow, mimosa, birch, and chestnut (friedrik, 2018). for this project, the tannins were extracted from three plant species: a. indica, a. nilotica, and c. fistula. these tannins were pre-extracted and stored. the process for preparing the fish leather began with the removal of the scales (fleshing), followed by rinsing the fleshed skin in clean water for 15 minutes. next, the skin was depigmented using a drum containing xylanase enzyme (4%) and water (30%) for 5 hours, then pickled in a solution containing salt (10%) and sulfuric acid (1%). the tanning process followed, during which the fish skins were tanned with the different tannins extracted from the three plant species for one day, after which they were dried. results the strength of the tanned leather was assessed by measuring its thickness using a thickness gauge (satra), which is the approved standard (iup/4 and iso 2589:2002). additionally, the tensile strength and percentage of elongation were measured using the material testing machine (lloyd), in accordance with the quality standards iso 3376:2011 and iup/6 (abid et al., 2020). to evaluate the suitability of the selected plant species for vegetable tanning, the tanning strength of the three-plant species used in this project, as recommended by the local fish leather manufacturer, was assessed. the tanning strengths of these species are summarized in table 3. table 3: tannin strength of the tree species used in vegetable tanning. sr. no plants tannis (%) non-tannins (%) tanning strength t/nt 1 a. indica 10.76 0.50 21.52 2 a. nilotica 8.7 1.82 4.78 3 c. fistula 10.6 1.4 7.57 the physical properties of the fish leather products treated with the three vegetable tanning agents are summarized in table 4. tensile strength refers to the stress required to fracture the leather, while the elongation percentage measures the extent to which the leather can stretch without breaking. tensile strength is a critical indicator of quality. in this study, the fish leather tanned with a. nilotica exhibited the highest tensile strength, elongation percentage, and thickness. tear strength, another essential property, indicates the amount of force required to make a cut in the leather sample in a specific direction. table 4: properties of vegetable tanning agents used. vegetable tanning agents thickness (mm) tensile strength (n/mm) elongation (%) tear strength (n/mm) a. nilotica 0.9 21.32 33 62 a. indica 0.8 14.33 30 70 c. fistula 0.6 10.23 18 58 besides beauty, a good fish leather product (such as shoes) must provide flexibility to prevent cracking and tearing. therefore, tear strength is crucial as it indicates the product’s resistance to damage. in this study, fish leather tanned with a. indica bark showed the highest tear strength. as shown in table 4 and figure 3, fish leather tanned with both a. indica and a. nilotica performed well in stress tests, making them suitable for fish leather products intended for various applications. based on these results, the final sample fish leather products developed in this project, which were presented to consumers, were tanned using vegetable tanning agents from these two tree species. figure 3: comparison of the properties of fish leather tanned with the three vegetable tanning agents. dyeing and finishing the aesthetic appeal of the fish leather product relies on dyeing and finishing techniques. in this project, environmentally friendly natural dyes from plants like onions, black turtle beans, pomegranates, and chestnuts agbioforum, 26(3), 2024 | 58 meng an. — sustainable strategies for creating aesthetically relevant fish leather products were used to enhance sustainability. the researcher collaborated with an industrial chemist experienced in colour measurement and dye kinetics to develop the dyes. various tests were conducted to assess their suitability, stability, and durability for dyeing and printing the leather. the rheological and physical properties of the dyes were assessed to determine their suitability and stability. the prints were tested for colour fastness and consistency after fixation using the iultcs/iuf 442 (iso 15701:2015) standards, which also evaluated potential colour migration into plastic materials by placing the leather in contact with neighbouring materials. as shown in figure 4, the fastness properties were excellent, with a rating of 4.5 out of 5. the leather product was also tested for colour fading or migration into various textiles under artificial acidic perspiration, following iso 11641:2012 standards for leather. different textile fibres, including wool, cotton, acrylic, polyester, and acetate, were used for testing. the dyed leather performed well in most cases, with only a light stain observed on the acetate fibre. the test results are shown in figure 5. figure 4: fastening (colour migration test results). figure 5: colour fastness/fading test results. the fading of the leather due to exposure to natural sunlight was tested using the xenon arc fading lamp (iso 105-b02:2013). the colour fading of the dyed fish leather was rated on a scale of 1 to 8 against a blue fabric. the results (see figure 6) showed excellent light fastness, with a score greater than 6. figure 6: colour fading test results. testing the products on consumers two samples created in this project were presented to potential consumers to assess their perceptions and acceptance. the samples, shown in figure 7, were displayed in an open shop alongside other leather products. consumers who showed interest were asked for their views agbioforum, 26(3), 2024 | 59 meng an. — sustainable strategies for creating aesthetically relevant fish leather products and perceptions and invited to fill out a questionnaire about purchasing fish leather products. the results are presented in table 5. within six hours, approximately 20 shoppers were attracted to the samples, either by touching, approaching, or inquiring about the price. figure 7: final samples tested on consumers. table 5: the consumers' views on the samples developed. question responses n=20 % what aspects of the product caught your attention appearance/design appeal/aesthetic appeal 17 85% uniqueness/craftsmanship 15 75% quality of material 14 70% texture/colour 12 60% do the ethical and sustainable practices of manufacturers influence your decision to purchase a leather product? yes 19 95% no 1 5% on a scale of 1-5, where 1= very bad, 5= very good, rate these products rating scale 1 (very bad) 2 (bad) 3 (average) 4 (good) 5 (very good) (1) design appeal 0 0 2 14 4 on the following parameters (2) craftmanship 3 5 10 2 (3) material quality 3 16 1 as shown in the table 5, the samples performed excellently across various parameters, highlighting the success of this project in developing aesthetically relevant fish leather products. over 60% of respondents appreciated aspects such as appearance, texture, quality, and craftsmanship. notably, more than 90% of respondents indicated that the sustainability and ethical practices of leather manufacturers significantly influenced their purchasing decisions, reflecting their awareness of the environmental impact of the leather industry. as shown in figure 8, the majority of the aesthetic properties of the samples scored above average. specifically, design appeal and material were rated as "good" by nearly three-quarters of the respondents surveyed. figure 8: the performance of the fish leather products based on consumer survey. discussion as demonstrated in the results section, this project successfully developed aesthetically relevant fish leather products that incorporated various sustainability aspects. the two products utilised vegetable tanning methods and natural dyes, reducing their environmental impact. this approach is supported by literature baquero et al. (2021), dreesmann (2024), friedrik (2018), jakobsen (2016), and sundar and muralidharan (2017), which highlights that although vegetable tanning is time-consuming, it is ecofriendly and produces higher-quality leather products compared to chrome-based tanning. vegetable-tanned leather is durable, free of toxic chemicals, moistureabsorbent, and forms a patina that signifies aesthetic beauty and quality in the leather industry, adding value to the products (friedrik, 2018). its biodegradability, natural feel, and smell make it unique and valuable in the market, agbioforum, 26(3), 2024 | 60 meng an. — sustainable strategies for creating aesthetically relevant fish leather products important factors in the fashion industry. studies also show that vegetable-tanned fish leather offers greater strength and durability than other textiles, enhancing its value (dreesmann, 2024). despite being thinner than animalbased leathers, the vegetable-tanned fish leather products demonstrated higher tensile and tear strength, surpassing standard leather in durability. the decision to avoid chrome-based tanning in this project was guided by various studies (baquero et al., 2021; friedrik, 2018; jakobsen, 2016; sundar & muralidharan, 2017), which highlight the higher environmental impact of this method compared to vegetable tanning. despite chrome tanning accounting for 80% of global leather production (jakobsen, 2016), it poses significant ecological risks due to the presence of carcinogenic and toxic substances like chromium and lead, which can harm aquatic life and ecosystems (friedrik, 2018). chrometanned leather tends to be thinner, softer, less durable, and more prone to cracking, while also being less porous. furthermore, it has an unpleasant smell and requires excessive water, making it unsustainable (dreesmann, 2024; friedrik, 2018; sundar & muralidharan, 2017). figure 9 illustrates the differences between vegetabletanned and chrome-tanned leather. the environmental performance of the vegetable-tanned leather was further improved by using natural dyes, which also enhanced its aesthetic appeal. fading and colour fastness tests showed that the dyes met industry standards. palomino and defeo (2022) highlighted that plant-derived natural dyes possess the necessary rheological and physical properties to enhance leather aesthetics. similarly, hasanah and islam (2024) noted that natural dyes are gaining popularity due to their eco-friendliness, abundance, cost-effectiveness, and lower environmental and health risks compared to synthetic dyes. figure 9: the appearance of vegetable and chrome-tanned leather galen leather (2022). conclusion increased awareness of climate change and global warming has led to a shift in the fashion industry towards more sustainable practices. fish skins, a by-product of the fishing industry, offer an eco-friendly alternative to animal and synthetic leathers. when processed locally, fish leather reduces the ecological footprint, and techniques such as vegetable tanning further enhance its sustainability by using minimal energy and water and avoiding toxic chemicals. the use of renewable energy in production can also lower co2 emissions. this study demonstrated that fish leather meets iso quality standards and, according to consumer surveys, outperforms traditional leather in appearance and material performance. this project thus establishes fish leather as a viable, sustainable alternative in the leather industry. recommendations, limitations and future research this study provides valuable insights into sustainable leather production, highlighting how innovation in fish leather contributes to enhancing the sustainability of the clothing industry. considering these findings, consumer interest in both luxury and the sustainability of such products remains strong, prompting a call for leather manufacturers to adapt their business strategies accordingly. the production of fish leather, incorporating green tanning, dyeing, and printing techniques, presents an opportunity to reduce both social and environmental impacts while improving product quality and gaining a competitive edge. however, this study is subject to several limitations. only one type of fish leather product a handbag was examined, and the research focused exclusively on vegetable tanning and natural dyes. future studies could broaden the scope by exploring a wider range of tanning and dyeing processes, including both conventional and environmentally friendly methods, while comparing aesthetic and sustainability parameters. additionally, expanding the variety of fish leather products beyond belts, wallets, and shoes, and testing the appeal of lower 48 fish leathers with a broader consumer sample would contribute to filling this knowledge gap. future research should also investigate emerging trends such as the individualisation and popularisation of consumption in fashion, examining shifts within the industry and reinforcing the unique selling propositions of fish leather products. references abid, u., mughal, t. a., saddiqe, z., & anwar, m. 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(2015). fish skins: valuable resources for leather industry. xxxvi iultcs congres. https://www.researchgate.net/publication/32314 4243 https://doi.org/10.1016/j.jclepro.2021.129344 https://doi.org/10.4324/9781351278966 https://www.manuel-dreesmann.com/blogs/information/fish-leather-catch-of-the-day-in-eco-fashion?_pos=1&_sid=8c49a1c9c&_ss=r https://www.manuel-dreesmann.com/blogs/information/fish-leather-catch-of-the-day-in-eco-fashion?_pos=1&_sid=8c49a1c9c&_ss=r https://www.manuel-dreesmann.com/blogs/information/fish-leather-catch-of-the-day-in-eco-fashion?_pos=1&_sid=8c49a1c9c&_ss=r https://www.manuel-dreesmann.com/blogs/information/fish-leather-catch-of-the-day-in-eco-fashion?_pos=1&_sid=8c49a1c9c&_ss=r https://www.researchgate.net/profile/seguye-shamena/publication/308167382 https://www.researchgate.net/profile/seguye-shamena/publication/308167382 https://www.carlfriedrik.com/int/magazine/vegetable-tanned-leather#benefits-of-%20vegetable-tanned-leather https://www.carlfriedrik.com/int/magazine/vegetable-tanned-leather#benefits-of-%20vegetable-tanned-leather https://www.carlfriedrik.com/int/magazine/vegetable-tanned-leather#benefits-of-%20vegetable-tanned-leather https://doi.org/10.1016/b978-0-443-15213-9.00015-6 https://doi.org/10.1016/b978-0-443-15213-9.00015-6 https://www.heddels.com/2016/12/vegetable-tanned-leather-how-its-%20made-benefits-and-importance/ https://www.heddels.com/2016/12/vegetable-tanned-leather-how-its-%20made-benefits-and-importance/ https://www.heddels.com/2016/12/vegetable-tanned-leather-how-its-%20made-benefits-and-importance/ https://doi.org/10.1016/j.jretconser.2020.102270 https://doi.org/10.1016/j.jretconser.2020.102270 http://dx.doi.org/10.29322/ijsrp.9.12.2019.p9626 http://dx.doi.org/10.29322/ijsrp.9.12.2019.p9626 https://medium.com/@dkagalula/title-fish-skin-leather-an-eco-conscious-alternative-for-sustainable-fashion-f1e8c82c3079 https://medium.com/@dkagalula/title-fish-skin-leather-an-eco-conscious-alternative-for-sustainable-fashion-f1e8c82c3079 https://medium.com/@dkagalula/title-fish-skin-leather-an-eco-conscious-alternative-for-sustainable-fashion-f1e8c82c3079 https://doi.org/10.1016/j.jclepro.2019.119737 https://doi.org/10.28991/esj-2020-01209 https://doi.org/10.28991/esj-2020-01209 https://www.researchgate.net/publication/363255943 https://www.researchgate.net/publication/363255943 https://doi.org/10.1016/j.jclepro.2016.11.021 https://vonbaer.com/blogs/blog/where-does-leather-come-from https://vonbaer.com/blogs/blog/where-does-leather-come-from https://doi.org/10.34314/jalca.v115i8.3845 https://doi.org/10.34314/jalca.v115i8.3845 https://www.researchgate.net/publication/323144243 https://www.researchgate.net/publication/323144243 agbioforum, 26(2): 66-76. ©2024 agbioforum small and medium enterprises and their role in achieving sustainability the case of al-ahsa governorate, ksa elnagi m. hamid* college of arts, king faisal university, saudi arabia. email: eadam@kfu.edu.sa dirar e. e. ahmed college of business and economics, qassim university, saudi arabia. email: de.ahmed@qu.edu.sa small and medium enterprises (smes) are considered drivers and engines for economic growth in almost all economies. in addition, smes have played a critical role in the field of sustainability. it is therefore crucial to discuss opportunities that smes provide in achieving sustainability. therefore, the study aimed to test the role of smes in sustainability. for this purpose, data was collected from 100 owners of smes using a survey questionnaire from the alahsa region in the kingdom of saudi arabia to investigate the various opportunities provided by smes in sustainability. descriptive results show that smes play an integral role in the development of three sustainability practices namely environmental, social and governance perspectives in saudi arabia. the results academically imply that smes in saudi arabia becomes a key driver of sustainable development through promoting environmental, social, and governance (esg) practices which is highlighting their strategic role in advancing sustainability structures. the results of the study will be significant to practitioners and policymakers, the sme sector, sme stakeholders, and other researchers in the field. the study also recommended taking strategies and policies for smes in ksa with specific reference to al-ahsa region could increase the development of economic and competitive advantage in the global village. keywords: small and medium enterprises (smes), development, sustainability, preserving the environment. introduction sustainability is an important concept in modern business and its importance has grown exponentially in recent years (charfeddine & umlai, 2023). this is a broad concept that encompasses environmental, social, and economic factors, and includes managing resources in a way that provides long-term benefits for future generations (pascual et al., 2023). in essence, sustainable development focuses on present needs and the ability of future generations to meet their own needs, healing natural resources (broccardo et al., 2023). in this sense, sustainability consists of meeting the current needs of the organizations without compromising the future effects which will promote social equity and economic growth (ruggerio, 2021). the need for sustainability is crucial for organizations because it attempts to conserve natural resources, reduce pollution, and mitigate climate change which could increase the social life of the individuals (raihan, 2024b). sustainable practices are key to building resilient systems that support current and future generations of people, planet, and prosperity (pascual et al., 2023). this approach is essential for long-term well-being and the well-being of future generations (charfeddine & umlai, 2023). based on previous studies, sustainability becomes an area of concern for the current study. sustainability has become a major area of concern for different organizations. among those, small and medium enterprises (smes) have gained significant global recognition and attracted the attention of both public and private sectors due to their contributions to the national economies of developing and developed countries alike (melo et al., 2023). consequently, smes have been highly recommended for these nations to enhance financial development and growth (ramli, 2023). numerous studies provided evidences that smes create new employment opportunities, increase innovation and creativity which helps to increase the financial growth, and alleviate poverty across various countries (bhatti et al., 2023; karmaker et al., 2023). given their global recognition and demonstrable positive impacts on national economies, smes are increasingly promoted as the engines of economic development and growth (karmaker et al., 2023). therefore, smes become important for the growth of any economy. the existing literature indicates that access to finance, procedural complexity, managerial skills, education, inadequate capacity building, and marketing challenges are significant obstacles for the smes sustainability (irawan et al., 2023). additionally, the absence of comprehensive macroeconomic policies, along with various regulatory and legal issues, compounds the barriers faced by smes (lwesya & mwakalobo, 2023). the sustainability of the smes becomes a major area of concern for economic diversification, social development, and global competitiveness. through the development of sustainable practices, smes become more resilient, innovative, and attractive to investors and international markets. with strong government support, access to finance, and alignment with sustainable vision of smes which are poised to drive long-term growth, create jobs, and contribute to national and global sustainability goals (kuteesa et al., 2024). their role in enhancing employment, reducing reliance on oil, and adopting innovation makes them essential for the future of saudi arabia. in saudi arabia, smes encounter numerous challenges and constraints that adversely impact their mailto:eadam@kfu.edu.sa mailto:de.ahmed@qu.edu.sa agbioforum, 26(2), 2024 | 67 hamid & ahmed — small and medium enterprises and their role in achieving sustainability the case of al-ahsa governorate, ksa growth and sustainability (khanzode et al., 2021). these previous studies have shown that when smes have access to various resources it could contribute to sustainability. therefore, this study focused on testing the role of smes in the sustainability of owners. while a great attention on sustainability from various perspectives, there is little focus on the specific role of smes in promoting sustainability despite their important contribution to economic development and social development (raihan, 2024a; wasiq et al., 2023). furthermore, bhandari et al. (2022) conducted a study on the impact of environmental and social governance on sustainability. they found that environmental and social governance has a positive and significant impact on sustainability. they also concluded that further research could be explored in other contexts and other countries, especially on sems for sustainability. furthermore, rane et al. (2024) demonstrated that strong corporate governance mechanisms contribute to sustainability by promoting ethical decision-making and responsible resource use. further, saha and khan (2024) revealed a positive relationship between esg integration and corporate financial performance, indicating that sustainability-oriented companies tend to outperform their peers in the long term. these previous studies have little attention on the role of smes on sustainability. on the other hand, existing literature has mainly focused on the sustainability practices of other countries (raihan, 2024a) with limited attention on the role of smes on sustainability. while study by prasanna et al. (2019) examined the adoption of sustainable practices through smes and found that small businesses could also contribute significantly to sustainability by reducing waste and materials. these studies emphasized that smes growth not only increases sustainability but it also increases financial resilience and stakeholders' trust. these previous studies have little attention in the context of saudi arabia. this gap in the literature highlighted the need for further research on the role of smes in improving sustainability, especially in developing countries like saudi arabia. therefore, study focused on the role of smes on the sustainability in the context of saudi arabia. the significance of this study is to address the gap in the existing literature on the role of smes in sustainable development, particularly in the context of saudi arabia. although, smes are globally recognized economically and socially contribution to sustainable development their unique impact, especially in such as saudi arabia. previous studies have little attention in the context of saudi arabia, therefore, this study contributed to fill this gap by investigating how saudi smes can provide environmentally, economically and socially sustainable products. furthermore, given the country’s sustainable development goals visions into mind which emphasizes diversity, innovation and sustainability, current study researchers explore the ways in which smes contribute to sustainable development which could help to policy makers, business leaders, and researchers for saudi arabia's economy and business owners. furthermore, this study also contributed to the global discourse on sustainable business practices through providing empirical evidence of the impact of smes in fast-growing, resourcebased economies. the study further divided into four chapters, literature review where literature discussed from both of theoretical and practical perspectives. research methodology where discussed about the main data collection procedure and research design. data analysis and results where, discussed the main findings of the study. lastly, consisted of discussion where discussed the main findings of the study and implications of the study. literature review in the modern environment, sustainability becomes an integral concept for the development of the business and for their growth from resent several years (charfeddine & umlai, 2023). broadly, sustainability has been encompasses from three elements environmental, social and economic factors which provided a significant ways for the organizations to gain a long term benefits for the future generations (pascual et al., 2023). in essence, sustainable development focuses on present needs and the ability of future generations to meet their own needs, healing natural resources (broccardo et al., 2023). corporations play an important role in sustainable development goals, and small and medium enterprises (smes) are no exception (raihan, 2024a). smes, which represent a significant portion of business worldwide, have the potential to make a significant contribution to sustainable development (oyewole et al., 2024). while large corporations tend to dominate the sustainability conversation, smes have a unique opportunity for leadership in areas such as innovation, resource efficiency, and social responsibility due to their agility, flexibility, and strong ties to the community (oyewole et al., 2024). the role of smes in sustainable development is complex and although they have significant economic, environmental, and societal impacts (lopez-torres, 2023). their contributions are often underappreciated smes make important drivers of economic growth, especially in developing countries such as saudi arabia, where job creation is practiced, to diversify the economy by providing subsidies innovation, and poverty reduction (alshaikh & hanaysha, 2023). they play an important role in building economic resilience, especially in creating employment opportunities for marginalized populations and youth (ur rehman et al., 2024). research has shown that smes are important and have created jobs locally, contributed to local gdp, reduced unemployment, and also supported economic recovery potential, which is especially important in areas where larger companies may not have the same level of engagement with local consumers (aslam et al., 2023). furthermore, ability of smes to innovate and respond quickly to market changes are important factors in sustainable economic growth (aslam et al., 2023). among the environmental sustainability, it is linked with large organizations but it is also important for the while environmental sustainability is often associated with large corporations, it is equally important for smes (alshaikh & hanaysha, 2023). such types of business have agbioforum, 26(2), 2024 | 68 hamid & ahmed — small and medium enterprises and their role in achieving sustainability the case of al-ahsa governorate, ksa the potential to reduce the environment bad impact on the energy efficiency practices, waste reduction and conservation (melo et al., 2023). studies have shown that sme types tend to adopt sustainable practices when considering long-term economic benefits , such as the energy efficiency or cost savings from waste reduction (alzayani et al., 2024). imperiale et al. (2023) showed that smes adopting green technologies achieve reduced energy consumption and operating costs. furthermore, smes are more flexible and quicker to adopt environmentally friendly practices compared to larger organizations, which may face more difficult managerial barriers (mwenda et al., 2023). furthermore, equipping smes with green products and services plays an important role, which supporting the sustainable use of resources (udeagha & ngepah, 2023). this shift has been evidenced in various countries where smes is becoming areas that encourage green practices that help the grow the economies through reducing the proportion of reliance on oil exports (oyewole et al., 2024). social sustainability is another important area in which smes have a significant impact. small businesses are generally more closely connected to their communities, and consequently better responsive to local social issues (mady et al., 2023). smes contribute to social development by providing fair wages, providing services to marginalized groups, and improving the quality of life in local communities. smes enterprises also provide lowcost goods and services, which they engage in csr (nawaser et al., 2023) where businesses play a role in reducing poverty and promoting social inclusion. braun et al. (2024) also further concluded that smes tend to engage in socially responsible practices due to their proximity to the communities in which they operate these projects generally in terms of their economic objectives. while smes are important in promoting sustainability, the direct impact of these businesses on sustainable development has not been widely studied (lopez-torres, 2023). existing literature has focused primarily on the sustainability practices of large corporations, with limited attention given to smes (al-mutawa & al mubarak, 2023). however, recent studies have started to explore how smes can contribute to sustainable development, particularly through innovative business models and practices that emphasize environmental and social responsibility (setyaningsih et al., 2024). kurniasari et al. (2023) examined the adoption of sustainable practices by smes and found that even small businesses could make substantial contributions to environmental sustainability by reducing waste and improving resource efficiency. another study by kuteesa et al. (2024) highlighted that smes are increasingly adopting sustainability strategies, especially when incentivized by government policies, customer demand for green products, and access to financial resources. despite the importance of smes in sustainable development, the direct impact of these sectors on sustainability has not been well studied. existing literature has mainly focused on the sustainability practices of large corporations, with little attention paid to smes (raihan, 2024a). however, recent research has begun to explore how smes can contribute to sustainable development, particularly through innovative business policies and practices that emphasize environmental and social responsibility. for example, prasanna et al. (2019) examined the adoption of sustainable practices through smes and found that small businesses could also contribute significantly to environmental sustainability by reducing waste and materials and implementing improved efficiency. sustainability research has shown that businesses that embrace sustainability have a greater chance of long-term profitability and growth. for example, a study by olazo (2023) found that companies that adopt sustainable practices can deliver shared value, which benefits their business and society. sustainable business practices increase productivity, reduce waste, and enhance brand reputation, leading to improved profitability. similarly, baldassarre et al. (2020) found that sustainability initiatives can help businesses reduce costs, increase customer loyalty, and improve employee satisfaction. for smes, this advantage may be more pronounced because smes tend to have more flexibility to innovate and respond more quickly to trends (olazo, 2023). despite the importance of the sustainability, still studies in the context of smes are still limited particularly the role of smes on the sustainability. alraja et al. (2022) conducted study and found that smes contributed in the growth. in other study found that, smes face high startup costs, long-term encounters challenges in implementing development practices due to benefits and lack of awareness (ijomah et al., 2024). this gap in the literature highlights the need for further research on the role of sme types play in improving sustainability, especially in developing countries like saudi arabia. further empirical studies also conducted in the field of sustainability but still have been conducted in other contexts. bhandari et al. (2022) conducted study on the impact of environmental and social governance on sustainability. they found that environmental and social governance has positive and significant impact on sustainability. they also concluded that further research could be explored in other contexts and other countries, especially on sems for sustainability. furthermore, rane et al. (2024) demonstrated that strong corporate governance mechanisms contribute to sustainability through promoting ethical decision-making and responsible resource use. further, saha and khan (2024) revealed a positive relationship between esg integration and corporate financial performance, indicating that sustainability-oriented companies tend to outperform their peers in the long term. corporate governance plays a critical role in embedding esg principles into organizational strategies, as effective boards ensure compliance with environmental and social regulations, enhancing the firm's sustainability (chiu & fong, 2023). these studies emphasized that esg practices and corporate governance not only increase environmental and social governance but also increase financial resilience and stakeholders' trust. these previous studies have little attention in the context of saudi arabia. this gap in the agbioforum, 26(2), 2024 | 69 hamid & ahmed — small and medium enterprises and their role in achieving sustainability the case of al-ahsa governorate, ksa literature highlights the need for further research on the role sme types play in improving sustainability, especially in developing countries like saudi arabia. as smes plays an important role in the sustainability of any economy from both of social and economic perspectives but previous studies have little attention on smes especially in the context of saudi sustainability. keeping previous gaps in mind, this study focus on the impact of smes in the growth of sustainability. methodology questionnaire development process the questionnaire was developed based on the systematic process which ensures the reliability and validity of the construct. in the first face, the questionnaire content was designed based on the extensive literature review to ensure that constructs covered the main area of investigation (hair et al., 2019). in the pre-testing process involved the field experts, subject expert, and english translator to assess the relevance, clarity, and wording of the items. feedback from experts led to revisions that improved the accuracy and readability of the questionnaire (devellis, 2016). following content pre-testing, a pilot test was conducted with a small 20 sample of participant’s representative of the target population. the pilot test aimed to identify potential issues, such as ambiguous wording, item redundancy, or response bias (saunders, 2023). based on pilot test feedback, necessary adjustments were made to enhance the clarity and reliability of the instrument. the final version of the questionnaire was then subjected to exploratory factor analysis (efa) to assess the factor loadings of 13 key items, ensuring that all items loaded significantly onto their respective constructs which is demonstrating the validity of the construct. the pilot testing results are presented in table 1 below, table 1: pilot test results dimensions question factor loading alpha environmental smes have mechanisms to preserve the environment. 0.782 smes contribute to producing green goods and services. 0.823 smes play a role in rationalizing energy use. 0.763 incentives encourage smes to engage in environmental preservation. 0.843 financial incentives promote environmental sustainability in smes. 0.842 economic smes play a role in increasing employee income. 0.772 smes contribute to increasing gdp in the region. 0.833 smes provide products at remunerative prices to consumers. 0.729 smes play a role in ensuring family stability. 0.835 smes contribute to reducing unemployment and creating jobs. 0.831 smes play a role in employing youth and reducing unemployment. 0.728 social smes contribute to social responsibility. 0.822 smes play a role in reducing poverty and supporting the solidarity economy 0.844 0.873 sources and methods of data collection the study objective was to test the impact of smes on sustainability in the context of saudi arabia. for this purpose, quantitative deductive approach was employed using self-administered questionnaire. this research design is considered to be good when the data is collected through survey instrument (lazaraton, 2002). in addition, study employed descriptive researcher design. the descriptive study lies in their ability in providing a comprehensive indication of a phenomenon, offering detailed insights into its characteristics, patterns, and relationships (nick, 2007). this approach facilitates hypothesis generation and informs future research or policy decisions. a sample of sme owners is selected for the study. both primary and secondary data serve as the principal sources of information. primary data are collected from a randomly selected sample using a structured questionnaire administered in 2022. secondary data are gathered from existing published literature on the subject. additionally, the study utilizes the questionnaire method to collect primary data, which was distributed to a group of smes in collaboration with the al-ahsa chamber of commerce. the kindom eastern area is situated in the country east part which situated in the eastern part of the country which is extended between latitudes 29.3 degrees north and 23.3 degrees south. it is bounded to the east by a longitude 51 degrees and to the west by longitude 54 degrees. this region has a triangular shape, with the arabian gulf forming its eastern boundary, the southern border adjacent to the sultanate of oman and the republic of south yemen, and the northern border adjacent to the riyadh region. the main urban centers include hofuf and almubarraz, both of which rank among the ten largest cities in the kingdom, along with four other significant cities and 22 villages. according to 2017 statistics, al-ahsa had the highest population in the eastern region, with approximately 1,041,863 residents. seeking the major covering area, study focused on this area for the collection of data. the collected data was analyzed in the descriptive statistics using the spss software. data analysis distribution of the sample table 2 predicted results show the demographic profile of the study. among the respondents of the study, in the gender representations, there were 93% of owners were men and only 7% were women. this gender disparity reflects the relatively recent inclusion of women in the sme sector, which has been driven by women's empowerment initiatives under vision 2030. this strategic policy aims to increase female participation in various economic sectors, including smes. age distribution indicates that a substantial portion of sme owners (42%) are 40 years or younger, with an additional 27% aged 40 to less than 50 years. this youthfulness underscores the agbioforum, 26(2), 2024 | 70 hamid & ahmed — small and medium enterprises and their role in achieving sustainability the case of al-ahsa governorate, ksa sector’s modernity and its capacity for development, as younger entrepreneurs tend to be more adaptable, innovative, and open to leveraging new business models and technologies. furthermore, 59% of sme owners possess a university degree or higher, with 48% holding a bachelor’s degree and 11% having postgraduate qualifications. these findings show that most of the respondents have master's degrees which shows smes owners are well-educated and are engaged in innovations that can drive the growth and competitiveness of the sme sector. further findings show that smes represent 73% of the total enterprises, 15% reflect the service sector, 7 % represent the industrial sector, and the agricultural sector shows 5%. this is also a concentration that is aligned with the region of socio-economic context, where commercial enterprises are more feasible due to lower capital requirements and faster return on investment. the distribution of project age indicates that 89% of smes are less than 10 years old, with 48% of them operating for 6 to 10 years. s. the predominance of self-financing (63%) as the main source of funding for smes suggests a reliance on personal or family resources rather than formal financial institutions. however, only 21% of projects are bank-financed, while 8% receive support from government funds and banks. these results show the need for greater awareness and utilization of the formal financial support system that could help to boost social and economic development. further findings show that the vast majority (88%) of smes are located in urban areas, reflecting the central role of urban centers in driving commercial and serviceoriented enterprises. this urban concentration highlights the role of cities as hubs of economic activity and access to markets. only 10% of smes are located in rural areas, and 2% in desert regions, which points to the need for targeted investment in rural development through incentives for agricultural and industrial enterprises. the marital status of sme owner’s reveals that 78% are married, indicating a connection between entrepreneurship and family stability. smes play a crucial role in supporting family well-being by generating income to meet essential needs, such as healthcare, education, and housing. this connection aligns with the broader socio-economic contributions of smes to community well-being and national development. together, these demographic characteristics highlight the growth potential of the sme sector, its role in economic diversification, and its alignment with national policy objectives. above results are predicted in table 2 table 2: demographic characteristics demographic variable category frequency percentage (%) gender male 93 93% female 7 7% age 20 to less than 30 24 24% 30 to less than 40 18 18% 40 to less than 50 27 27% 50 or more 31 31% project type commercial 73 73% services 15 15% industrial 7 7% agriculture 5 5% educational qualification general education (secondary or less) 28 28% diploma 13 13% bachelor’s degree 48 48% postgraduate degree 11 11% project age less than 1 year 28 28% 1 to 5 years 13 13% 6 to 10 years 48 48% more than 10 years 11 11% marital status married 78 78% unmarried 22 22% residence area urban (city) 88 88% rural (village) 10 10% hijra (desert) 2 2% type of project financing bank financing (private sector) 21 21% self-financing (project owners) 63 63% collective investment (crowdfunding) 4 4% blended finance 4 4% government funds & banks 8 8% the role of small and medium enterprises in preserving the environment the table 3 results shown the result of on impact smes on sustainability. these findings shown that smes played an important role to increase the sustainability of the organizations. further results shown that majority of the respondents are on point of agreed and strongly agreed point with the statement that smes have mechanisms to preserve the environment, accounting for 95% (63% agree, 32% strongly agree) of total responses. this suggests that smes are actively adopting environmentally friendly practices. a similar trend is observed in the production of green goods and services, where 90% of respondents (62% agree, 28% strongly agree) affirmed the role of smes in green production. moreover, 86% of respondents acknowledged that smes contribute to the rationalization of energy use, highlighting the growing awareness of energy efficiency within these enterprises. further results also emphasized that smes also contribute agbioforum, 26(2), 2024 | 71 hamid & ahmed — small and medium enterprises and their role in achieving sustainability the case of al-ahsa governorate, ksa to the economic development. the findings shown that 98% of the respondents are agreed on point that smes play a role in increasing employee income, with 61% agreeing and 37% strongly agreeing. additionally, 96% of respondents recognized the role of smes in providing products at remunerative prices, which reflects their contribution to consumer welfare. in terms of employment, 97% of respondents indicated that smes help reduce unemployment and create jobs, while 95% affirmed that smes contribute to youth employment. these responses indicate that smes are a vital source of employment, income generation, and overall economic development in their respective regions. further, findings shown that smes also plays in promoting the social welfare of the people. the findings shown that respondents are tremendously which shown the role of smes in enhancing family stability (95%) and supporting social responsibility (98%). further findings shown that contribution of the smes also playing an integral role in reduction of the poverty which shown 95% of respondents recognizing this role. the data suggests that smes are perceived as essential players in promoting social well-being and reducing poverty. these findings highlighted that smes playing an integral role in the sustainability from three perspectives environmental, social and economic development perspectives which is making a critical pillar of sustainable development in society. the above results are predicted in following table 3 below, table 3: the role smes in economic, social, and environmental development dimension question agree (frequency) strongly agree (frequency) disagree (frequency) total (frequency) total (%) environmental smes have mechanisms to preserve the environment. 63 32 5 100 100% smes contribute to producing green goods and services. 62 28 10 100 100% smes play a role in rationalizing energy use. 55 31 14 100 100% incentives encourage smes to engage in environmental preservation. 58 24 18 100 100% financial incentives promote environmental sustainability in smes. 62 31 7 100 100% economic smes play a role in increasing employee income. 61 37 2 100 100% smes contribute to increasing gdp in the region. 59 37 4 100 100% smes provide products at remunerative prices to consumers. 63 31 6 100 100% smes play a role in ensuring family stability. 61 34 5 100 100% smes contribute to reducing unemployment and creating jobs. 53 44 3 100 100% smes play a role in employing youth and reducing unemployment. 54 41 5 100 100% social smes contribute to social responsibility. 63 35 2 100 100% smes play a role in reducing poverty and supporting the solidarity economy. 54 41 5 100 100 figure 1: response distribution for smes contribution agbioforum, 26(2), 2024 | 72 hamid & ahmed — small and medium enterprises and their role in achieving sustainability the case of al-ahsa governorate, ksa discussion small and medium enterprises (smes) play an important role in improving environmental, economic and social development in saudi arabia. the findings of this study provide valuable insights into how smes contribute to key areas of growth. this shown that smes played an integral role in protecting the environment which is promoting to the sustainability of any sector. based on previous discussion, the study provides a comprehensive understanding of the role of smes in saudi arabia’s goals of sustainability, economic diversification and the achievement of social welfare. the findings from the environmental perspectives shown that smes in the saudi arabia are becoming actively associated for the protection of the environment through the proper formulating the strategies which helps to the impact the natural resources of the organizations and country. further results also shown that smes also playing an important in the formulation of the strategies for the management of the waste, recycling, and sustainable manufacturing practices. these measures are in line with global sustainable development trends and in line with saudi arabia’s commitment to reduce its environmental footprint. through adhering to environmental protection policies, smes contribute to reducing pollution, conserving natural resources, and supporting the broader goal of environmental sustainability. in addition, smes also play an integral role in the production of green products and services. smes in saudi arabia adopt environmentally friendly production methods, produce environmentally friendly products, and provide sustainable services. increased awareness of climate change and growing demand for sustainable products have spurred the green shift. as consumers become more environmentally conscious, the market for green products continues to grow. these findings emphasize that smes play an important role in supporting these projects, producing environmentally friendly products, and ensuring sustainable products come to market. on the other hand, further results also highlighted that smes also play an important role in producing energy-efficient products like energy storage devices, energy efficiency management systems, and manufacturing efficiencies. by reducing energy consumption, smes not only reduce costs but also contribute to the country’s broader goal of reducing its dependency. the above results are consistent with the following studies where they also found that smes play an integral role in the enhancement of sustainability of the organizations (akande et al., 2023; nick, 2007). further results show that smes also play an integral role in the enhancement of the economic development of the organization. the smes increase the environment of economic development in the context of employment, market competitiveness, and gdp contribution. the findings show that smes through providing job opportunities for individuals are increasing the opportunities for the job which is reducing unemployment in saudi arabia. a stable income allows workers to fulfill their financial obligations, provide for their families, and improve their quality of life. these contributions are important in a country like saudi arabia, where income stability plays an important role in promoting economic prosperity and family well-being. further results show that smes also increase the culture of market competitiveness by providing proper products a competitive prices in the market. this is providing proper products and goods to the customers in the range of their affordable products. by maintaining stable prices, smes encourage consumer spending and support the local market, reducing their dependence on imports. the ability to supply at competitive prices reinforces the role of smes as key players in the local supply chain. this promotes the growth of the internal market and promotes economic freedom. furthermore, smes enable small manufacturers and suppliers to compete with larger firms, creating a more balanced market structure. furthermore, findings sown that smes also playing an integral role in increasing eh contribution in the gdp of the country which is considered to big contribution in economy after the oil sector. smes by contributing to local manufacturing, increased productivity and local resources suppliers supporting their role in gdp growth directly affects economic performance production, sales, services etc. continue to grow through the ability to operate at sectors, which are critical to economic transformation given the saudi government’s commitment to reduce oil dependency, the contribution of smes to gdp is critical to long-term economic growth. further results shown that smes also playing an integral role in creating economic diversification through providing the opportunities of entrepreneurship and development in their existing business. because the smes increase the culture of entrepreneurship through enabling to the individuals to their own business which helps to create a new ideas. this entrepreneurial spirit is critical to building a dynamic and competitive economy. by facilitating innovation, smes support innovation and technological development. their role in economic transformation is critical to reducing the country’s dependence on oil exports and promoting the growth of a knowledge-based economy. the findings highlight how smes provide diversification schemes, encourage local production, and contribute to a highly resilient economy. on the other hand, results predicted that smes also played an important role in the enhancement of social welfare of people in saudi arabia. these findings show that smes played an integral role in the stability of the family by providing proper employment opportunities and a stable source of income. the findings also indicated that smes also increase the culture of family well-being and stability. when individuals are employed, they are better able to meet family needs such as education, health care, and housing. strong family group. these findings show that smes played an important role in the enhancement of economic development. the results are supported by the findings of (atichasari & marfu, 2023; manzoor et al., 2021), who also found that smes played a significant role in increasing economic deployment. further results show that smes are also important for the social sustainability of organizations and individuals. the agbioforum, 26(2), 2024 | 73 hamid & ahmed — small and medium enterprises and their role in achieving sustainability the case of al-ahsa governorate, ksa results show that smes significantly contribute to the social welfare of the economy by providing social responsibility actions. the findings show that smes in arabia are actively involved in csr activities that provide benefits to local communities and improve society's welfare. these projects include supporting local charities, funding community development projects, and participating in environmental protection activities. through csr, smes foster strong ties with local communities, enhance their public image, and build trust with stakeholders. such measures are important in meeting social challenges and promoting community well-being. the role of socially responsible smes is also crucial to achieving the social sustainability goals, as they increase the resilience of communities, and encourage and promote ethical business practices and a culture of sustainability. on the other hand, further results show that smes play an integral role in the reduction of poverty and are significantly contributing to social development. these findings emphasize that smes play an integral role in creating jobs and encouraging entrepreneurship, smes provide economic opportunities for marginalized and lowincome individuals. the solidarity economy model, which emphasizes community-based support, is reinforced by the role of smes. smes support the livelihoods of lowincome groups by employing people from the community and promoting local production. this, in turn, contributes to poverty reduction and economic inclusion, creating income opportunities for vulnerable groups. the role of smes in poverty reduction in saudi arabia is critical, as it is in line with the kingdom’s broader efforts to promote inclusive growth and reduce socio-economic inequalities. the above results are line with previous studies where they found that (belas et al., 2021; esposito de falco et al., 2021; malesios et al., 2021). the study findings highlighted that smes playing a crucial role in increasing he sustainability of the organization and individuals. these findings emphasized the important contribution of smes in the sustainability which is supporting to the sustainable development goal of 20230 vision of saudi arabia. implications and future directions this study is the first to examine the role of smes in promoting environmental, economic and social development in saudi arabia and provides important theoretical contributions to how businesses and manufacturing also play central role in the environment challenges the traditional view that environmental efforts are primarily confined to large corporations and governments. the study also advances the theoretical model of economic growth as smes contribute not only to gdp growth but also to fair value mechanisms, increasing labor income, which is key to growing the economic fabric of the country and also, the role of smes in social development expands understanding, their activities. family stability, poverty reduction, youth employment, and social responsibility are related. this contribution enables the theoretical framework for smes and sustainable development, especially in developing countries, and is aligned with saudi arabia’s sustainable development goals (sdgs). the study helps to execute gaps in the academic literature on how smes have been able to achieve both economic growth and social equity and could become major players, positioning them as key actors in shaping the country’s sustainable future. the study could also help the researchers to conduct their research with the extended contributions to know the changes in findings. from a practical perspective, the study provides actionable insights for policymakers, industry entrepreneurs, and sme managers in saudi arabia. it argues that government agencies such as the saudi ministry of environment and monsha’at should support smes by promoting green practices, and providing financial incentives and favorable market conditions for sustainable growth. policymakers can support smes through targeted policies, access to green technologies and better financing mechanisms to enhance their contribution to economic growth while enforcing non-consumptive practices to encourage the environment. furthermore, smes through corporate social responsibility (csr) programs, youth employment programs, and family support programs could also be encouraged to enhance social welfare, and contribute to national goals such as reducing unemployment and poverty etc. these practical outcomes identify policy and support mechanisms that can lead to sustainable development contributions. by integrating environmental sustainability into the business plans of smes, the government can encourage more robustness and promote economic stability mouth, social cohesion, and equitable development. this study provides a roadmap for smes to not only contribute to the economic development of the region but also to actively participate in a sustainable, socially responsible, and environmentally responsible future for saudi arabia. the study still has various gaps that could be tested in future studies. firstly, the study was limited to smes and ignored panel data or longitudinal studies which limited the scope of the study. therefore, future studies could explore panel data and add more than one country to know the variations in the findings. secondly, the study was also limited to descriptive research and ignored the regression model which limited the scope of the study. further research could be explored on the regression model to test the cause and effect of the variables. thirdly, the study was only conducted on a survey instruments while ignoring the interview method which is qualitative. further research could be explored on quantitative and qualitative mix study to increase the scope of the study. conclusion small and medium enterprises in saudi arabia playing an important role in the development economy from both social and economic perspectives which could derive the economic development. this could support environmental preservation through csr, green production, and energy conservation. smes enhance financial income, living standards, and essential sectors like agriculture and services. furthermore, they reduce unemployment, alleviate poverty, and foster a solidarity-based economy. agbioforum, 26(2), 2024 | 74 hamid & ahmed — small and medium enterprises and their role in achieving sustainability the case of al-ahsa governorate, ksa therefore, the study aimed to test the role of smes in sustainability. for this purpose, data was collected from 100 owners of smes using a survey questionnaire with primary data from the al-ahsa region in the kingdom of saudi arabia to investigate the various opportunities provided by smes in sustainability. descriptive results show that smes play an integral role in the development of three sustainability practices namely environmental, social and governance perspectives in saudi arabia. the results academically imply that smes in saudi arabia becomes a key driver of sustainable development through promoting environmental, social, and governance (esg) practices which is highlighting their strategic role in advancing sustainability structures. the results of the study will be significant to practitioners and policymakers, the sme sector, sme stakeholders, and other researchers in the field. the study also recommended taking strategies and policies for smes in ksa with specific reference to the al-ahsa region could increase the development of economic and competitive advantage in the global village. the research limitations and future directions were also tested at the end of the study. acknowledgement this work was supported by the deanship of scientific research, vice presidency for graduate studies and scientific research, king faisal university, saudi arabia [grant no. kfu242510]. references akande, k. m., igbekoyi, o. e., 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economic factors impact on agriculture foods products productivity: a dynamic model analysis societal and economic factors impact on agriculture foods products productivity: a dynamic model analysis musaddag elrayah* department of management, school of business, king faisal university, p.o box: 400, al-ahsa, 31982, saudi arabia.email: melrayah@kfu.edu.sa sanjar mirzaliev tashkent state university of economics, uzbekistan. email: s.mirzaliev@tsue.uz the research aimed to test the impact of societal and economic factors on agricultural production in gulf cooperation council countries (gcc) countries. longitudinal quantitative secondary data were collected from 2005 to 2023. both diagnostics and regression analysis were conducted. utilizing a dynamic panel data approach, the research found that per capita income, gross domestic product, and educational levels positively influence agricultural productivity, while rural population and food imports have negative effects. moreover, the role of agricultural exports and gender equality emerged as significant positive effects on agricultural productivity. these findings emphasize the importance of economic prosperity, education, and inclusive practices in driving agricultural productivity. study with empirical significant findings, theoretically contributed to filling existing gaps by integrating both social and economic variables into the productivity model, providing a more comprehensive framework for similar contexts. practically, the results suggest targeted policy measures that promote economic growth should support rural development, and encourage gender inclusivity in agriculture, while also balancing domestic production with food imports. this integrated approach aligns with saudi arabia's vision 2030 goals, offering valuable insights for sustainable agricultural development. keywords: social factors, economic factors, agricultural production, gcc, agriculture 1. introduction agricultural productivity is a critical food security and economic stability determinant that plays a fundamental role in shaping the nation's economic development (abiri et al., 2023). it measures per unit output produced with input in the agricultural sector and increases it requires a comprehensive understanding of various influencing factors (chaudhary et al., 2023). various factors improve agricultural productivity and among those societal and economic factors are important factors in influencing agricultural productivity (akpaeti et al., 2024; chaudhary et al., 2023; firmansyah et al.). other authors also argued that economic factors are important indicators of increasing agricultural productivity (muleta & gebremariam, 2023). economic factors provide the financial resources which are necessary for investment in modern farming technologies, infrastructure, and research (kitole et al., 2023). equally, societal factors also improve agricultural productivity by enhancing the skills and knowledge of the workforce through education, enabling the adoption of modern farming techniques and efficient resource management (julien et al., 2023). furthermore, promoting societal factors also ensures that all potential contributors are fully engaged which leads to more diverse and innovative agricultural practices, that boost agricultural productivity (njuki et al., 2023). based on these integrating both economic and societal factors into the analysis of agricultural productivity provides a more comprehensive understanding of the determinants of productivity. different economic factors improve agricultural production. among those per capita which reflects the overall economic well-being and income levels within a country (onyeneke et al., 2023). a higher per capita product often correlates with increased financial resources available for investment in various sectors, including agriculture (fuglie et al., 2024). it has also shown that higher per capita income facilitates the adoption of advanced farming techniques and improves access to highquality inputs, which are essential for increasing agricultural output (lin et al., 2024). in other words, gross domestic product (gdp) is another economic indicator that plays a significant role in increasing agricultural productivity by influencing the level of public and private investment in the sector (rosyadi et al., 2023). economic growth reflected by rising gdp can lead to increased funding for agricultural development projects, including infrastructure improvements, research initiatives, and support programs for farmers (suela et al., 2023). furthermore, economic growth increases a conducive environment for agricultural innovation by providing resources for research and development, enhancing the sector's capacity to address challenges such as water scarcity and land degradation (charlier & fizaine, 2023). in other words, agricultural imports are important to increase agricultural production by providing access to advanced farming technologies and other essential inputs that may not be readily available domestically (suela et al., 2023). these imports can enhance productivity by enabling farmers to adopt better practices and improve crop yields (wang et al., 2023). additionally, imports could serve as a stopgap measure to stabilize food supply during periods of domestic production shortfalls, thereby supporting overall agricultural output (urak & bilgic, 2023). furthermore, agricultural exports are also an important factor in driving economic growth which could be mailto:melrayah@kfu.edu.sa mailto:s.mirzaliev@tsue.uz agbioforum, 26(1), 2024 | 50 elrayah & mirzaliev — societal and economic factors impact on agriculture foods products productivity: a dynamic model analysis reinvested into improving production efficiency and expanding operations (glauber & laborde debucquet, 2023). they also encourage the adoption of higher standards and advanced practices to meet international market demands, leading to overall improvements in agricultural productivity (bortz & toftum, 2024). on the other hand, a strong rural population is also important for agricultural production because it provides the necessary labor force for farming, especially in the labor-intensive agricultural system (pinstrup-andersen, 2030). the availability of a skilled and adequate rural workforce is thus essential for sustaining and enhancing agricultural productivity (pinstrup-andersen, 2030). along with economic factors, social factors like education level and gender equality also impact agricultural productivity (perelli et al., 2024). educational attainment in rural areas is particularly important for enhancing productivity, as it equips farmers with the knowledge and skills necessary to implement modern farming techniques and manage resources more effectively (nurillaev, 2024). education can lead to better decision-making, the adoption of innovative practices, and improved efficiency in agricultural operations (kitole et al., 2023) which could lead to agricultural productivity. on the other hand, gender equality is another critical societal factor influencing agricultural productivity. inclusive practices that promote gender equality ensure that all potential contributors to the agricultural workforce are fully utilized and their contributions optimized (njuki et al., 2023). this inclusivity not only enhances productivity but also contributes to broader social and economic benefits, such as increased empowerment and economic participation for women in rural areas (julien et al., 2023). with the significance of social and economic factors, empirical findings still have several gaps in the extant literature. for example, previous research extensively examines the impact of economic factors such as per capita product (firmansyah et al., 2023) gdp on agricultural productivity (anaduaka et al., 2023), agricultural imports, agricultural exports, and food imports (d’amour & anderson, 2020; obayelu et al., 2024; pawlak & kołodziejczak, 2020; rina et al.; subramaniam et al., 2024). the studies have a notable lack of comprehensive studies integrating societal factors like education and gender equality within the same model. this fragmented approach often leads to inconsistent findings and overlooks the interactive effects of economic and societal factors on productivity (obayelu et al., 2024). furthermore, extant studies also focused on other countries and have more focused on individual effects of either economic factors or societal factors (anaduaka et al., 2023), agricultural imports, agricultural exports, and food imports (d’amour & anderson, 2020; obayelu et al., 2024; pawlak & kołodziejczak, 2020; rina et al.; subramaniam et al., 2024). while ignoring other unique socio-economic and environmental contexts of gulf cooperation council (gcc) countries, leading to a limited understanding of how these factors converge in the saudi context (yousif, 2024). in other contexts, extant studies also have focused on individual country while has limited attention on the combined three countries oman, the united arab emirates, and saudi arabia. this research seeks to bridge these gaps by providing a general analysis that incorporates both economic and societal variables, offering a more strong view of their combined impact on agricultural productivity in gulf cooperation council countries. therefore, the study focused on the impact of social and economic factors on the agricultural production of gcc countries specifically saudi arabia. the study with findings contributed from both theoretical and practical perspectives. through addressing the significant gaps and with significant findings, this study contributes to a more complete understanding of determinants of agricultural productivity and provides actionable insights for researchers aiming to enhance productivity through integrated strategies that consider both economic and societal factors. the study framework with societal and economic factors contributed in the context of gcc countries specifically saudi arabia with a vision of 2030 goals, which emphasize the need for a diversified and inclusive approach to economic and social development. saudi arabia vision 2030 aims to reduce dependency on oil and enhance various sectors, including agriculture, by encouraging economic growth, technological innovation, and social inclusivity. the integration of economic and societal factors into agricultural productivity models could also help policymakers design more effective strategies that address both financial and human capital aspects. therefore, this holistic approach is essential for achieving sustainable agricultural growth and ensuring long-term food security in saudi arabia. the research consisted of a further fourchapter literature review, research methodology, data analysis and interpretation, discussion, and conclusion. 2. literature review agricultural productivity consisted of the total output produced in farming per unit, including labor, and capital. also, this is a key indicator of efficiency and agricultural product sustainability (zhou et al., 2024). per capita income represents the average economic output of any individual in a given area and is considered to be an important indicator of economic development (yaqoob et al., 2023). over the past decade most research in per capita production has emphasized the importance of agricultural productivity because higher income levels can lead to increased investment in agriculture, better access to technology, and more effective use of resources. in another study, per capita production has been also identified as a major contributing factor to the decline of agricultural productivity (lusigi et al., 1998). empirically, yaqoob et al, (2023) found that as income levels rise, so do investments in agricultural technology also increases which leads to higher productivity. similarly, yaqoob et al, (2023) showed that regions with higher per capita income tend to adopt more advanced agricultural practices, which directly boosts productivity. furthermore, alajeeli et al, (2023) also emphasized that economic growth at the per capita level often leads to better infrastructure, such as irrigation and transportation systems, which are critical for agbioforum, 26(1), 2024 | 51 elrayah & mirzaliev — societal and economic factors impact on agriculture foods products productivity: a dynamic model analysis agricultural productivity. these studies identify that per capita income is an important factor in increasing agricultural productivity and therefore, it is hypothesized that, h1: agricultural productivity is influenced by per capita income. the rural population refers to the population segment that lives in rural areas which are typically involved in the agricultural industry. it has been argued in the literature that agricultural productivity plays an important role in the improvement of agricultural productivity (shen et al., 2023). a larger rural population can contribute more labor to agricultural activities, which, in turn, could enhance productivity (shen et al., 2023). different empirical evidence also suggested that a larger rural population could positively influence agricultural productivity. according to yaqoob et al, (2023) areas with a substantial rural population often see higher agricultural productivity due to the availability of labor, which facilitates the implementation of labor-intensive farming techniques. nguyen et al, (2023) further highlighted that rural population growth can lead to improved agricultural productivity when accompanied by policies that promote rural development. similarly, ngong et al, (2023) noted that rural populations, when adequately supported contribute significantly to agricultural productivity through their labor and indigenous knowledge of farming practices. based on previous studies, following research hypothesis formulated below, h2: agricultural productivity is influenced by the rural population. agricultural workers were individuals engaged in the cultivation of crops and livestock. it has been identified in the extant literature that agricultural productivity plays a crucial role in the improvement of agricultural productivity (hill et al., 2024). the availability of a sufficient workforce is critical to maintaining and increasing agricultural productivity, especially in labor-intensive farming systems (kitole et al., 2023). empirically, (hill et al., 2024) also found that regions with a higher number of agricultural workers tend to have greater productivity due to the ability to implement labor-intensive agricultural practices. in the same vein, shivakumar et al. (2024) also noted that in developing countries, the number of agricultural workers is a significant determinant of productivity, as it directly influences the extent of land cultivation and crop management. additionally, jelliffe et al. (2024) emphasized that agricultural productivity is often higher in areas with a more substantial agricultural workforce because it allows for more meticulous and continuous care of crops and livestock. these previous studies have shown that the rural population played an important role in increasing agricultural productivity and hence following hypotheses are proposed below, h3: agricultural productivity is significantly influenced by the rural population. agricultural products exports refer to the sale of domestic products produced as an agricultural goods in the foreign market. the exports opportunities provides incentives to the farmers in adopt of latest technologies which increase the production yields (el weriemmi & bakari, 2024). empirical studies have found that agricultural product exports increase agricultural productivity (xu et al., 2023). in another study, aragie et al. (2023) found that countries with higher levels of agricultural exports tend to have more productive agricultural sectors, as the need to meet export demands drives efficiency and innovation. similarly, el weriemmi and bakari (2024) noted that agricultural exports often lead to the adoption of better farming practices and technologies, which boost productivity. moreover, kitole et al, (2023) also found that agricultural exports contribute to increased productivity by providing farmers with additional income which leads to increase in agricultural production. based on previous discussion, it is hypothesized that, h4: agricultural production is influenced by agricultural exports. on the other hand, imports of food products which are often taken from other countries, often fulfill the need for domestic agricultural production (xinyao et al., 2024). food imports affect agricultural production because the availability of imported agricultural goods could encourage local producers to adopt more efficient methods to remain competitive (alzhanova et al., 2024). this study is further supported with fwah et al, (2024) who also argued that agricultural imports can positively influence productivity by introducing new technologies and practices that local farmers adopt. nevertheless, amin and rahman, (2024) found that in some cases, high levels of agricultural imports could discourage local production which leads to lower agricultural productivity. another study jeyanthi and kannan, (2024) indicated that agricultural imports could drive domestic producers to improve their efficiency and productivity to compete with imported goods. correspondingly, akpaeti et al, (2024) also suggested that the impact of agricultural imports on productivity depends on the level of integration between domestic and international markets, with more integrated markets seeing greater productivity gains. following hypothesis proposed below, h5: agricultural productivity is influenced by agricultural imports furthermore, food products imports show that products imported from other countries fulfill the need for domestic production (subramaniam et al., 2024). some researchers encourage food-imported goods because these imports may encourage domestic producers to increase efficiency and productivity to compete effectively. alternatively, high levels of food imports could potentially reduce incentives for local production, depending on market dynamics (obayelu et al., 2024). empirically, batool and sheikh, (2024) also found that food imports could positively influence productivity by introducing competition that encourages local farmers to adopt more efficient production methods. in another context, obayelu et al, (2024) further found that excessive reliance on food imports can undermine local agricultural productivity by reducing the incentive for domestic production. on the other hand, obayelu et al. (2024) pointed out that in some cases, food imports have resulted in decreased agricultural agbioforum, 26(1), 2024 | 52 elrayah & mirzaliev — societal and economic factors impact on agriculture foods products productivity: a dynamic model analysis productivity when domestic farmers are unable to compete, leading to a reduction in local production. these previous studies show that there is no specific study that defines properly to food imports and relationships are also not clear therefore it is hypothesized that, h6: agricultural productivity is influenced by food imports. gross domestic product (gdp) shows the total economic output of a country and is a broader measure of overall economic health (ngong et al., 2023). when the gdp increase then the economy also grows which often leads to increased investment in agriculture, better infrastructure, and more resources available for farming activities. a higher gdp can facilitate advancements in agricultural technology and practices, thereby boosting productivity (alajeeli et al., 2023). rosyadi et al. (2023) further findings indicated that higher gdp growth is associated with increased agricultural productivity, as economic growth leads to better infrastructure, access to technology, and financial resources for farmers. alabi and abu, (2023) also concluded that gdp growth positively and significantly impacts agricultural productivity by enabling governments to invest more in rural development and agricultural research. similarly, deng et al. (2023) confirmed that gdp growth contributes to higher agricultural productivity by improving the overall economic environment in which agriculture operates. finally, ozdemir, (2024) noted that countries with sustained gdp growth increase agricultural productivity because economic prosperity leads to more significant investments in agriculture. following hypothesis proposed below, h7: agricultural productivity is influenced by gross domestic product. furthermore, education level is also an important factor for agricultural productivity. in the rural areas, education level means that farmers have very limited focus on formal education which leads to improvement the their agricultural system (nifatova et al., 2023). while, literature cited that agricultural productivity is closely linked to education, as better-educated farmers are more likely to adopt modern farming techniques, use agricultural inputs effectively, and manage their farms efficiently (anaduaka et al., 2023). education helps to increase the ability of any farmer to understand the latest technology trends that are used for agriculture that could increase their agricultural productive as compare to less educated people (anaduaka et al., 2023). they further argued that higher levels of education among farmers lead to increased productivity enabling them to adopt new technologies and better manage their resources. siankwilimba et al, (2023) investigated that educational programs targeted at rural areas could significantly boost agricultural productivity by increasing farmers' knowledge and skills. based on previous findings, it is hypothesized that, h8: agricultural productivity is influenced by educational levels in rural areas gender equality in the agricultural sector refers to the equal participation of both men and women (njuki et al., 2023). perelli et al, (2024) also argued the same phenomenon that gender equality in agricultural labor refers to the equal participation and treatment of men and women in agricultural activities. the promotion of gender equality ensured that agricultural workforce members could effectively contribute to increasing agricultural production (abdisa et al., 2024). suela et al, (2023) also found that when women have equal access to agricultural resources, such as land and credit, productivity increases significantly. tesfaye et al, (2023) further showed that gender inequality in resource allocation leads to inefficiencies in production, suggesting that promoting gender equality could enhance productivity. uduji and okolo‐obasi, (2023) also noted that closing the gender gap in agricultural labor could result in substantial productivity gains by ensuring that all available labor is utilized effectively. azumah et al. (2023) also emphasized that policies promoting gender equality in agriculture can lead to more sustainable and productive farming practices, as they leverage the full potential of the agricultural workforce. based on previous empirical studies evidence, it is hypothesized that, h9: agricultural productivity is influenced by gender equality in agricultural labor. 3. research methods the research aimed to test the impact of societal and economic factors on agricultural production in gcc countries specifically in saudi arabia. for this purpose, researchers employed the quantitative research approach, and longitudinal research design to investigate the causal relationships between variables over time. unlike a crosssectional design, which captures data at a single point in time, the longitudinal design allows for the observation of changes and developments within the studied population, providing a more comprehensive understanding of the phenomena under investigation (wanat et al., 2024). furthermore, research is explanatory which aims to identify and clarify the underlying causes or factors that influence the observed outcomes (ryser, 2021). quantitative research offers several strengths over qualitative methods, particularly in its ability to produce generalizable findings through statistical analysis, handle large datasets, and focus on objectivity and replicability (bernabei et al., 2023). analyzing data collected at multiple intervals enhances the ability to draw inferences about causality and the direction of relationships among variables, thereby contributing to a deeper understanding of the subject matter (rahman, 2020). therefore, study employed the quantitative research approach. 3.1 data source and variable measurement the data were collected from secondary sources which is are presented in table 1. data were collected from 2005 to 2023 from statistical reports of the arab organizations from agricultural development and world development indicators. table 1 shown the variables of the study. agricultural production is dependent variable, and have seven independent variables namely rural population, agricultural imports, agricultural exports, foods imports, education, number of workers, per capita income and gender equality and gross domestic products. agbioforum, 26(1), 2024 | 53 elrayah & mirzaliev — societal and economic factors impact on agriculture foods products productivity: a dynamic model analysis table 1: variables measurements variables measurement sources dependent variable agricultural production (mahrous 2019) independent variables rural population log (rural population) (hitzhusen & jeanty 2006; salahodjaev & mirziyoyeva 2021) agricultural imports agricultural imports/total imports (mohamed et al., 2024) agricultural exports food exports/total exports (mohamed et al., 2024) food imports food imports/total imports (mohamed et al., 2024) education education classes (mohamed et al., 2024) gender equality proportion of females (bag & barman, 2022) per capita income log (gdp deflator) (hitzhusen & jeanty 2006; salahodjaev & mirziyoyeva 2021) number of workers log (agriculture workers) (fusco et al. 2020) gross domestic product 3.2 econometric models the study has the following research model which is presented in equation 1 below, ap=α+β1gdp+ β2rp+ β3ai+ β4ae+ β5fi+ β6edu+ β7ge+ β8pci+ β9nw+ € where, gdp-gross domestic products, rp-rural population, agricultural imports, agricultural exports, food imports, education, gender equality, pci-per capita income, nwnumber of workers, ap-agricultural productions 3.3 descriptive statistics this section shows the descriptive statistics of the gcc countries: saudi arabia, oman, and the united arab emirates. gdp average value is 850, representing that gcc countries have wealth and economic strength, driven by oil revenues and diversification. the small rural population, averaging 1.81 million, coupled with substantial agricultural imports (15.5 billion usd) and food imports (18 billion usd), reflects a heavy reliance on external sources due to limited domestic agricultural output. agricultural exports average 7.22 billion usd, indicating some level of export activity but still insufficient to offset import dependencies. with average agricultural production at 12 billion usd, there are ongoing investments in this sector to boost productivity. high per capita income (35,000 usd) and a significant workforce (8 million) support a strong economy, while an average of 10.5 years of schooling shows a commitment to education. the moderate gender equality index (0.32) reflects ongoing progress in social reforms. the above results are predicted in table 2 below. table 2: descriptive statistics variable average standard deviation minimum maximum gdp 850 120 600 1100 re(million) 1.81 0.51 1 2.5 ai(billion usd) 15.5 3.22 10 20 ae (billion usd) 7.22 1.83 4 10 fi(billion usd) 18 2.53 14 22 ed (average years of schooling) 10.5 1.23 8 12 ge (gii index) 0.32 0.08 0.2 0.45 pci (usd) 35,000 5,500 25,000 45,000 nw (million) 8 1.52 6 10 ap (billion usd) 12 2.22 8 16 3.4 correlation matrix the correlation matrix shows the relationship of economic and social variables with agricultural production (ap). the relationship between gdp and ap is (0.55) which represents moderate positive correlation which shown that higher economic output is associated with increased ap. ai (0.60) and ae (0.50) both show strong positive correlations with ap, indicating that both imports and exports are crucial to enhancing agricultural output. fi also has a significant positive correlation (0.55) with ap, highlighting the role of food trade in supporting agricultural activities. pci (0.65) shows the strongest positive correlation with ap, implying that higher income levels contribute significantly to boosting agricultural production. conversely, ge has a slight negative correlation (-0.15) with ap, potentially reflecting complex socio-economic influences. the nw (0.50) also positively correlates with ap, suggesting that a larger workforce supports higher agricultural output. the above results indicated that economic prosperity, trade dynamics, and income levels are crucial factors influencing agricultural production, while social factors like gender equality have less direct impact. the correlation matrix results are predicted in the following table.3 below. table 3: correlation matrix variable gdp rp ai ae fi ed ge pci nw gdp 1 rp -0.556 1 ai 0.689 0.342 1 agbioforum, 26(1), 2024 | 54 elrayah & mirzaliev — societal and economic factors impact on agriculture foods products productivity: a dynamic model analysis table 3: continue… variable gdp rp ai ae fi ed ge pci nw ae 0.735 0.421 0.804 1 fi -0.781 -0.388 -0.865 0.773 1 ed 0.422 0.278 0.312 0.355 0.349 1 ge 0.312 0.145 0.291 0.265 0.278 0.381 1 pci 0.905 0.234 0.762 0.792 0.795 0.403 -0.29 1 nw 0.623 0.562 0.679 0.665 0.712 0.289 -0.235 0.678 1 4. regression results 4.1 diagnostics test before conducting the hypothesis results, it is important to some diagnostics tests that reveal significant improvements when transitioning from a static panel data model to a dynamic panel data model, addressing several econometric issues commonly encountered in agricultural productivity studies. the first diagnostic test was the variance inflation factors (vif) which showed that all exogenous values across models remained below the critical threshold of 5, suggesting that multicollinearity was not a concern in either model. this finding aligns with the literature, where vif values under 5 are typically considered indicative of an acceptable level of multicollinearity (murray et al., 2012). the slight reduction in vif values in the dynamic model suggests a more stable and robust estimation process, as also noted by (imbens & wooldridge, 2009). the second diagnostic test was the heteroscedasticity which was detected in the static panel data. this test was identified by a significant breusch-pagan test (p-value = 0.03) which was resolved in the dynamic model (p-value = 0.18). heteroscedasticity refers to the non-constant variance of errors that could lead to inefficient estimates and invalid inference if not addressed (imbens & wooldridge, 2009). the use of robust standard errors in the dynamic model likely mitigated this problem which is providing more reliable coefficient estimates, consistent with methods recommended by (wooldridge, 2009). the third test was the autocorrelation problem which was identified in the static panel data with a durbin-watson statistic of 1.2 and was effectively addressed in the dynamic model. autocorrelation, where residuals from different periods are correlated, can bias estimates in panel data models (nerlove & wallis, 1966). the arellano-bond test for second-order autocorrelation (ar(2)) confirmed the absence of autocorrelation in the dynamic model (pvalue = 0.25), validating the model's reliability. finally, researchers tested the endogeneity test through the hausman test in the static panel data (p-value = 0.02), which was addressed in the dynamic model through the use of the system generalized method of moments (gmm) and instrumental variables (ivs). endogeneity, where explanatory variables are correlated with the error term can lead to biased and inconsistent estimates (wooldridge, 2009). the application of system gmm recommended by arellano and bover, (1995), successfully mitigated these issues ensuring that the dynamic model produced consistent and unbiased estimates. the above-discussed results are predicted in table 4. table 4: diagnostics results estimates static panel data model dynamic panel data model interpretation vif gd p 2.31 1.91 no multicollinearity issues; vif < 5 in both models. rp 2.13 2.12 ai 2.12 2.52 ae 3.01 1.71 fi 1.16 1.52 ed 1.12 1.23 ge 1.31 1.34 pci 2.31 1.81 nw 2.01 3.01 heteroscedasticity present (p-value = 0.03) not present (p-value = 0.18) heteroscedasticity present in the static model, is resolved in a dynamic model. autocorrelation present (durbin-watson = 1.2) not present (arellano-bond ar(2) p-value = 0.25) autocorrelation detected in a static model, resolved in a dynamic model. endogeneity suspected (hausman pvalue = 0.02) addressed (system gmm with ivs) endogeneity suspected in static model, addressed in dynamic 4.2 hyhypothesis results after the diagnostics test, the next step is to interpret the hypothesis results. the dynamic panel data regression results show that per capita income (pci) has a positive (.251) and significant impact on agricultural production (ap) in gcc. this indicates that when pci increase then agricultural production also rises, supporting the hypothesis. rural population (rp) has a negative (-0.122) and significant effect on ap, suggesting that larger rural populations may not necessarily translate into higher agricultural production, possibly due to inefficiencies or other factors. the number of workers (nw) has a positive and significant coefficient of 0.323, indicating that a larger workforce supports increased agricultural output. agricultural exports (ae) have a strong positive effect with a coefficient of 0.431, highlighting the importance of export activities in boosting agricultural production. agricultural imports (ai) also show a positive impact with a coefficient of 0.183, reflecting that higher imports can agbioforum, 26(1), 2024 | 55 elrayah & mirzaliev — societal and economic factors impact on agriculture foods products productivity: a dynamic model analysis complement domestic production. food exports (fe) have a negative effect with a coefficient of -0.15, which might indicate complexities in the relationship between food exports and agricultural production. gdp has a positive and significant effect with a coefficient of 0.211, reinforcing the role of economic prosperity in supporting agricultural output. education (ed) and gender equality (ge) also show positive impacts with coefficients of 0.353 and 0.291, respectively, suggesting that higher education levels and gender equality contribute to improved agricultural production. the above results are predicted in table 5 below, table 5: hypothesis results hypothesis beta coefficient standard error p-value pci 0.251 0.083 *** rp -0.122 0.062 *** nw 0.323 0.091 *** ae 0.431 0.113 *** ai 0.183 0.073 *** fe -0.15 0.065 ** gdp 0.211 0.075 *** ed 0.353 0.085 *** ge 0.291 0.083 *** 5. discussion the research aimed to test the impact of societal and economic factors on agricultural production in gcc countries specifically in saudi arabia. for this purpose, researchers employed the quantitative research approach, and longitudinal research design to investigate the causal relationships between variables over time. dynamic panel data predicted results indicated that per capita income in gcc countries has a positive and significant impact on agricultural productivity. these findings set out with the aim of assessing the importance of per capita income for enhancing agricultural production. the results support the extant research into this brain area which linked per capita income with agricultural production (onyeneke et al., 2023; sui et al., 2024), where they also found that higher per capita income typically correlates with better access to advanced farming technologies, improved infrastructure, and investment in agricultural research and development. in gcc countries, where significant resources are allocated to modernizing the agricultural sector, these finding suggests that as the general economic well-being of the population increases, so does the capacity to improve agricultural productivity through enhanced inputs and practices. in contrast, the depicted results also show the negative and significant impact of the rural population on the agricultural productivity of gcc countries. the present findings were designed that increasing in rural population in gcc is leading to decreasing agricultural productivity. a possible reason for this negative impact is that the rural population on agricultural productivity in saudi arabia could be attributed to the unique demographic and economic conditions of the region. unlike many developing countries where a large rural population is essential for agricultural labor, the gcc agricultural sector has increasingly relied on technological solutions and mechanization to overcome labor shortages. the results are not consistent with the following studies li et al, (2024), but they are consistent with the following studies (sui et al., 2024). these results indicated that results are still not on one point which enforced that there is a still need for further study. further predicted results show a positive and significant impact of a number of workers in the agricultural sector on agricultural production in gcc countries. the positive role of number of workers impact on agricultural production in gcc countries shows that gcc countries have majorly focused on labor in saudi arabia's agricultural sector. these results approved with other research where shown that despite the increasing use of mechanization, the sector still relies heavily on a labor force that is often composed of expatriate workers (nelson et al., 2024). this dependency on labor suggested that gcc countries should establish policies aimed at improving labor conditions, skills training, and retaining workers in agriculture could significantly enhance productivity could increase gcc countries' economic growth. in other countries, agricultural exports predicted results show a positive and significant influence on agricultural production in gcc countries. the strong positive impact of agricultural exports on productivity in gcc reflects the sector's strategic focus on developing export-oriented agricultural production, particularly in high-value crops like dates and certain horticultural products. the study results are compared to the findings of previous work (kastratović, 2024; tajenova et al., 2023), where they also found the same results and they further concluded that agricultural exports are a major contributing factor in developing nations to increase their exports at the international level. these previous studies argued that gcc countries should primarily focus on agricultural product exports because increasing agricultural exports not only provides revenue but helps to meet international quality standards. further findings also show the positive and significant impact of agricultural imports on agricultural production in gcc countries. these findings show that agricultural imports have a positive effect on productivity in saudi arabia, indicating the crucial role of imported agricultural inputs such as seeds, fertilizers, and machinery. these findings are not similar to previous findings where they found agricultural imports negatively and significantly affect agricultural products (suela et al., 2023) and they concluded the reason for the negative impact is that these countries do not rely on imported goods while gcc countries have a positive impact on agricultural production. as the gcc countries have harsh climatic conditions and limited arable land, therefore a possible reason is these countries' reliance on high-quality imported inputs for boosting productivity. thus, it is suggested that gcc countries should continue access to global agricultural markets for inputs is vital for maintaining and enhancing productivity in the gcc agricultural sector. in addition, food imports have a negative and significant impact on the agricultural productivity of gcc countries. this negative effect of food imports on agricultural products is indicated in gcc countries when the food imports increased then the agricultural productivity decreased. this negative effect in agbioforum, 26(1), 2024 | 56 elrayah & mirzaliev — societal and economic factors impact on agriculture foods products productivity: a dynamic model analysis gcc could reflect the trade-offs between relying on imports to meet domestic food demand and investing in local agricultural production. the results are further in line with the findings of (obayelu et al., 2024; yemelyanov et al., 2023), who also found the same results and they also argued that the countries that have a scarcity of resources in water, then agricultural production decreased. gcc which has historically relied on food imports due to water scarcity and land constraints, this dependence might undermine local productivity by reducing the incentive for domestic production (wang et al., 2023). therefore, based on findings it is highlighted the need for balanced policies that support domestic agriculture while managing food security through imports. gross domestic products also have a positive and significant impact on agricultural productivity in gcc. this positive influence in gcc aligns with the broader economic context in which overall economic growth increases investments in the agricultural sector. they concluded that countries that have more resources in their countries improved their infrastructure then those countries' agricultural production and economic growth increased. as the gcc economy grows, resources are available for infrastructure development, and for technological adoption. therefore, it is argued that to enhance the agricultural productivity in gcc, they should work to improve their gdp which could lead to improving their economic development to compete in the international market. these findings are supported by the sustainable development goals of 2030 where they also emphasized that gdp enhancement is a major concern of economic development. in another context, the educational level in rural areas also has a positive and significant impact on the agricultural productivity of gcc. these findings indicating the importance of education in adopting innovative agricultural practices in gcc. education equips farmers with the knowledge and skills needed to implement modern farming techniques, manage resources efficiently, and respond to environmental challenges (diallo & wouterse, 2023; rosyadi et al., 2023). the findings argued that improving educational access in rural areas could be a key strategy for enhancing agricultural productivity in the gcc. in the same context, gender equality also has a positive and significant influence on the agricultural production of gcc. this positive impact of gender equality on productivity in gcc shows the potential gains from inclusive labor practices. although traditional gender roles have historically limited women's participation in agriculture, recent reforms in gcc have opened up new opportunities for women in various sectors, including agriculture. these arguments and results reinforced that promoting gender equality could unlock additional productivity gains, as women contribute more actively to agricultural activities. these suggestions are further supported by the following study (cheong et al., 2024; elias et al., 2023). 6. implications the study holds different theoretical and practical contributions after fulfilling the key gaps in the extant literature in the gcc country's context. previously, studies on agricultural productivity have majorly focused on technology and economic factors often overlooked the unique economic and societal factors impact on agricultural productivity. this study fills these gaps by integrating a broader set of variables such as per capita product, gross domestic products, agricultural exports and imports, rural population, gender equality, and educational levels into the analysis of agricultural productivity. by doing so, it provides a strong understanding of how both economic and social factors interact to influence productivity in a region characterized by extreme environmental conditions and reliance on both domestic and imported agricultural inputs. on the other hand, the study also contributed findings with the extended models by incorporating variables that reflect the specific context of saudi arabia, such as the role of expatriate labor, the impact of food imports on local production incentives, and the importance of gender inclusivity in agricultural practices. the inclusion of these factors not only enriches the theoretical framework but also challenges conventional models that may not fully capture the complexities of agricultural productivity in similar emerging and resourceconstrained economies which contribute to the global discourse on sustainable agricultural development. the study could also help other researchers to know the importance of this extended model to conduct their research in the future by adding other variables to increase research generalizability. the study findings not only contribute theoretical framework by linking socio-economic, demographic, and environmental factors but also offer practical guidance for developing sustainable agricultural policies that align with the kingdom's vision 2030 goals. practically, study results provide actionable insights for policymakers and stakeholders in saudi arabia's agricultural sector. the positive impact of economic variables such as per capita product and gdp suggests that continued investment in economic growth and modernization is crucial for enhancing agricultural productivity. however, the negative effects of a large rural population and reliance on food imports highlight the need for balanced policies that support rural development and encourage local production. the study also emphasized the significance of education and gender equality in driving productivity which suggests that initiatives aimed at improving educational access in rural areas and promoting gender-inclusive practices in agriculture could yield significant benefits. through these targeted strategies implementations, gcc countries could better position their agricultural sector to meet the challenges of food security and sustainable economic development. 7. conclusion the research aimed to test the impact of societal and economic factors on agricultural production in gulf countries. used quantitative research approach, and longitudinal research design to test the study hypothesis. utilizing a dynamic panel data approach, the research found that per capita product, gdp, and educational levels agbioforum, 26(1), 2024 | 57 elrayah & mirzaliev — societal and economic factors impact on agriculture foods products productivity: a dynamic model analysis positively influence productivity, while rural population and food imports have negative effects. moreover, the role of agricultural exports and gender equality emerged as significant positive contributors. these findings emphasize the importance of economic prosperity, education, and inclusive practices in driving agricultural productivity. study with empirical significant findings, theoretically contributed to filling existing gaps by integrating both social and economic variables into the productivity model, providing a more comprehensive framework for similar contexts. practically, the results suggest targeted policy measures that promote economic growth, support rural development, and encourage gender inclusivity in agriculture, while also balancing domestic production with food imports. this integrated approach aligns with saudi arabia's vision 2030 goals, offering valuable insights for sustainable agricultural development. 8. limitations and future directions the study with significant findings still has several limitations which limited the scope of the study. at first, the study was limited to direct effect while ignoring indirect moderating effect, therefore further research could be conducted on adding moderating variable to increase the predictive power of the model. further, research is limited to the longitudinal quantitative research approach while ignoring qualitative research. therefore, future research could be explored on 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ihsaneffendi@staff.uma.ac.id saribulan tambunan universitas medan area, medan, sumatera utara, indonesia. orcid id: https://orcid.org/0000-0001-8817-693x email: sari@staff.uma.ac.id ikbar pratama universitas medan area, medan, sumatera utara, indonesia. orcid id: https://orcid.org/0000-0002-7897-2737 email: ikbar.p@gmail.com this study investigates the determinants of coffee production among smallholder farmers in indonesia, focusing on factors such as land area, climate change, capital investment, labour availability, and coffee prices. utilizing a structured questionnaire for data collection, the research employs partial least squares structural equation modelling (pls-sem) via smart-pls software to analyse both direct and moderating effects of these variables on coffee production. the findings indicate that increased land size and capital investment significantly enhance coffee yields. conversely, climate change adversely impacts coffee production through detrimental weather patterns and elevated temperatures. additionally, issues related to labour availability are identified as critical barriers to improving farming efficiency. the study also reveals that coffee prices mediate the relationships between these variables, with higher prices incentivizing increased production. this research contributes to theoretical understanding by elucidating the dynamics of price volatility and agricultural yields within the coffee market. it offers practical recommendations for stakeholders, advocating for policies aimed at enhancing land consolidation, promoting climate-smart agricultural practices, and improving access to financial services for coffee farmers. the study acknowledges limitations related to its geographic focus and cross-sectional design, suggesting avenues for future research at diverse geographical scales and production levels. keywords: coffee production, climate change, capital investment, pls-sem, coffee prices. introduction background coffee is among the most valuable agricultural commodities worldwide, significantly contributing to the economies of numerous countries. as the fourth-largest coffee producer globally, indonesia occupies a crucial position in the international coffee market. the coffee sector in indonesia is not only a primary source of income for millions of smallholder farmers but also serves as a vital export commodity. the country produces both arabica and robusta coffee varieties, which dominate production due to their adaptability to lower altitudes and diverse climatic conditions. despite indonesia's prominent role in the global coffee market, the sector encounters various challenges that adversely affect productivity, profitability, and sustainability. smallholder farmers, who constitute the backbone of coffee production in indonesia, bear the brunt of these challenges. they face significant risks stemming from price volatility, climate change, limited access to funding, labor shortages, and restricted agricultural land. these factors not only influence the yields and quality of the coffee beans but also impact the overall well-being of the farmers and indonesia's standing in the international coffee economy. understanding the intricate relationships between these variables and coffee production is essential for formulating effective strategies to enhance the productivity, profitability, and sustainability of the indonesian coffee industry. by addressing these interconnected challenges, stakeholders can develop targeted interventions that support smallholder farmers and strengthen indonesia’s position in the global coffee market. coffee production in indonesia: key challenges indonesia, as a major coffee producer, confronts numerous challenges within its coffee industry, particularly influenced by factors such as global coffee price volatility, climatic variations, labor dynamics, and access to credit. these interconnected issues complicate the ability of farmers to adopt long-term agricultural strategies. a significant challenge faced by indonesian coffee producers is the instability of coffee prices. the global market exerts a profound influence on coffee pricing, and the inherent volatility in these prices disproportionately affects small-scale farmers, who often struggle to absorb financial losses. when coffee prices are high, farmers are incentivized to reinvest their profits by expanding their cultivated areas and adopting new production technologies. conversely, when prices decline, farmers tend to reduce their input expenditures, abandon coffee cultivation, and shift towards more stable crops. this cyclical nature of investment and disinvestment can destabilize local coffee production and hinder long-term planning. climate change represents an escalating concern for coffee production, particularly for the arabica variety, which is highly sensitive to temperature fluctuations and altered rainfall patterns. research indicates that climate change has reduced the suitable growing areas for arabica coffee, compelling farmers to extend their cultivation into cooler regions (bunn et al., 2015). furthermore, the adverse effects of climate change do not only diminish coffee yields but also compromise the quality of the beans due to various environmental stresses placed on the crops. this dual impact on both quantity and quality poses significant risks for farmers who rely on coffee as their primary source of income. access to credit is another critical challenge facing smallholder coffee farmers in indonesia. many farmers lack the necessary capital to invest in improved farming practices, modern tools, and essential inputs such as fertilizers and pesticides. financial constraints severely limit their ability to adopt advanced https://orcid.org/0009-0000-9893-1409 mailto:akbar@uma.ac.id https://orcid.org/0000-0002-3006-9880 mailto:ihsaneffendi@staff.uma.ac.id https://orcid.org/0000-0001-8817-693x mailto:sari@staff.uma.ac.id https://orcid.org/0000-0002-7897-2737 mailto:ikbar.p@gmail.com agbioforum, 26(2), 2024 | 56 siregar et al. — a sustainable economic model for organic coffee production in indonesia: integrating local wisdom and key … technologies that could enhance both the quality and quantity of coffee production. additionally, labor shortages, particularly during peak harvest times, can lead to disastrous outcomes, resulting in lower yields and subpar quality of coffee beans (nyemeck binam et al., 2003). this lack of labor not only affects immediate production but also undermines the overall sustainability of coffee farming in the region. importance of key variables in coffee production this study examines five critical factors influencing coffee production in indonesia: land area, climate change, capital investment, labor availability, and current coffee prices. while these variables are commonly identified in broader analyses of agricultural productivity, their interrelations within the indonesian coffee sector warrant particular attention to enhance yield and sustainability (nugroho et al., 2020; pratama et al., 2019; tanjung et al., 2022; utamia, indriantob, & pratamac, 2019). investment in agriculture, especially in crops like tea, is often characterized by the extensive land area dedicated to production, which directly impacts productivity. larger farms can capitalize on economies of scale, allowing farmers to apply higher quantities of inputs per hectare, thus resulting in greater yields. however, in indonesia, where smallholder farming predominates, expanding land area presents challenges due to land scarcity and competition with other agricultural uses (astuty et al., 2022b; atrizka et al., 2020; nu'man et al., 2020; saragih et al., 2020; siregar et al., 2023). the escalating influence of climate change on coffee production cannot be overlooked. rising temperatures, altered rainfall patterns, and increased pest and disease incidence collectively contribute to declining coffee yields. agricultural productivity, particularly in coffee cultivation, is vulnerable to the impacts of climate change, which disproportionately affect smallholder farmers who typically have fewer resources to adapt (danilwan & pratama, 2020; pratami et al., 2022; silviani, nisa, & pratama, 2022). capital investment is another essential factor, as access to financial resources is crucial for improving farming practices, tools, and inputs. the study highlights that access to capital is particularly relevant for smallholder farmers in indonesia, whose operations are often marginal, limiting their ability to invest in productivity-enhancing technologies (astuty et al., 2022a; atrizka & pratama, 2022; pratama et al., 2024). labor availability plays a vital role in coffee production, particularly during planting and harvesting seasons (ikhsan et al., 2024). the ease of access to labor significantly influences the efficiency of farming practices and the quality of the harvested beans. however, rural areas in indonesia face labor shortages due to urban migration and an aging population, exacerbating the challenges of coffee production. as a globally traded commodity, coffee prices fluctuate in response to external market forces, often beyond the control of farmers. these price dynamics have a direct impact on farmers' earnings and their willingness to invest in future production. high coffee prices typically encourage expansion and reinvestment, while low prices lead to reduced production and lower investment levels. this study primarily assesses the correlation among land area, climate change, capital investment, labor availability, and coffee prices on coffee production in indonesia. additionally, it seeks to establish the moderating role of coffee prices within these relationships. specifically, the research aims to explore several key questions: to what extent do variations in land area impact coffee production in indonesia? how does climate change affect coffee production in the country? in what ways does financing influence coffee production and farming operations? how does the availability of labor constrain coffee production levels? finally, this study seeks to elucidate the moderating role of coffee prices in the relationships between land area, climate change, capital investment, labor availability, and coffee production. this research provides valuable insights to the existing literature on coffee production, particularly concerning smallholder farmers in indonesia. understanding the interdependencies among critical factors such as land area, climate change, capital investment, labor availability, and coffee prices is essential for developing strategies aimed at enhancing per-hectare productivity and ensuring the sustainability of the indonesian coffee industry. given the increasing emphasis on sustainable agriculture in light of climate change and global market volatility, the findings of this study have significant implications for policymakers, agricultural extension services, and farmers themselves. the insights gained will inform approaches to increase coffee productivity in future environmental and economic conditions, particularly emphasizing the impact of coffee prices as a moderating variable. by addressing these factors, this study aims to provide a comprehensive framework for enhancing the resilience and sustainability of coffee production in indonesia. literature review relationship between land area and coffee production this study investigates the correlation between land area and the efficiency of agricultural production, with a specific focus on coffee farming. the literature indicates a consensus among researchers that larger farm sizes tend to yield higher outputs due to factors such as economies of scale, improved resource utilization, and enhanced management practices. according to a prior study the farm size significantly influences coffee production in kisii county, kenya. their findings suggest that larger farms achieve higher yields per hectare because they can dedicate more land to coffee cultivation compared to smallholders who may grow multiple crops. moreover, larger properties are more conducive to implementing quality-enhancing technologies, thereby boosting production. similarly, wollni & zeller (2007) highlighted that larger farmers in costa rica experience greater productivity due to better access to resources, particularly labor, inputs, and specialty coffee markets. this access allows large-scale farmers to adopt advanced farming practices and techniques, further increasing their yields. scholars also reported that expanding the area allocated to coffee production in ethiopia positively impacts both the quality and quantity of coffee produced. larger farmers are better positioned to implement improved agricultural practices, such as mechanization for planting and weeding, as well as organic farming agbioforum, 26(2), 2024 | 57 siregar et al. — a sustainable economic model for organic coffee production in indonesia: integrating local wisdom and key … techniques that enhance coffee quality. supporting this, barham et al. (2011) demonstrated in their study in southern mexico that larger land parcels facilitate better agricultural practices, such as terracing and shade-grown coffee, which not only boost production but also promote ecological diversity. while the physical size of the farm plays a crucial role in productivity, it is also closely linked to access to better markets. binswanger & rosenzweig (1986) argued that larger farms, particularly in developing countries, benefit from increased access to capital and credit facilities, which enable them to adopt improved farming technologies. these advancements contribute to more efficient production and higher yields. the research conducted by moguel & toledo (2001) in mexico provides additional insights into traditional coffee systems, indicating that larger-scale coffee farms yield significantly more coffee and support a greater diversity of plant and animal species, enhancing soil fertility and long-term yields. this perspective is echoed in the study by researchers in yirga cheffe, southern ethiopia, where both male and female coffee farmers with larger plots achieved higher yields due to effective land management practices and technologies, including agroforestry and soil conservation. in the indonesian context, researchers extended this economic relationship, finding a significant increase in coffee production correlating with larger farm sizes. their research indicates that increased land area positively affects input usage, labor efficiency, and mechanization, leading to higher yields on larger farms compared to smaller ones. this observation aligns with findings from southern ethiopia, where land expansion is associated with increased coffee production. furthermore, researchers in tanzania noted that greater farm sizes resulted in higher coffee yields and incomes, offering farmers greater resilience against crop failures and market instability. a prior study similarly identified farm size as a critical factor in coffee productivity in india, asserting that larger farms benefit from better access to irrigation and advanced technologies. across these studies, a clear pattern emerges: the amount of land available significantly influences coffee production levels. larger farms not only achieve standardized outputs but also adopt superior farming practices and gain access to better markets, ultimately leading to higher coffee yields when compared to small-scale farming operations. h1: it was also found that there is a positive correlation between land area and coffee production. relationship between land area and coffee production global climate change has emerged as a critical factor undermining agricultural productivity, with coffee production particularly vulnerable to shifting climatic conditions. numerous studies have explored the impacts of rising temperatures, altered rainfall patterns, and extreme weather events on coffee quality and average yields. this section synthesizes findings from various research efforts to illustrate the significant role that climate change plays in coffee production and to formulate hypothesis h2. a recurrent conclusion across multiple publications is the negative impact of increasing temperature levels on coffee production. a prior study described that rising mean temperatures and temperature fluctuations constrain the geographic areas suitable for coffee cultivation, with arabica coffee being more susceptible to these changes than robusta. supporting this view, bunn et al. (2015) project that temperature increases could lead to a reduction of nearly 50% in arabica coffee production by 2050. for instance, in tanzania, rising temperatures have been correlated with decreased yields, as illustrated in various data visualizations. shifts in precipitation patterns, particularly erratic rainfall and prolonged dry seasons, have also been shown to adversely affect coffee production. pham et al. (2019) emphasize that irregular rainfall disrupts the flowering process of coffee plants, resulting in lower yields. in central america, bunn et al. (2015) modeled future climate scenarios and found that, without adaptation measures, one-third of existing coffee-growing areas may become unsuitable due to changing precipitation patterns. moguel & toledo (2001) further noted that extended dry seasons exacerbate pest problems, compounding the negative effects on coffee yields. climate change also heightens the risk posed by pests and diseases. warmer temperatures have been linked to the spread of the coffee berry borer and leaf rust disease. results of a prior study demonstrated that elevated temperatures and humidity levels, particularly in latin america, create optimal conditions for pest proliferation, resulting in significant crop losses. similarly, craparo et al. (2015) reported a 50% decrease in arabica coffee yields in tanzania, attributing this decline primarily to increased pest populations driven by climate change. several studies suggest that adaptation strategies may mitigate some of the adverse impacts of climate change on coffee production. bunn et al. (2015) proposed agroforestry systems and the introduction of drought-resistant coffee varieties as viable solutions. likewise, pham et al. (2019) advocated for the development of climate-resilient coffee production systems, emphasizing improved irrigation techniques and effective shade management. it is important to note that the effects of climate change are not uniform across different regions, with altitude playing a significant role in determining coffee production outcomes. a prior study found that higher-altitude regions may be less affected by rising temperatures compared to low-altitude areas, which are at risk of losing their suitability for coffee cultivation. conversely, jaramillo et al. (2011) suggested that climate change could create favorable conditions for coffee cultivation in higher elevation sites, offering a potential refuge for coffee production. the literature reviewed consistently underscores the detrimental impacts of climate change on coffee production, highlighting the challenges posed by rising temperatures, variability in precipitation patterns, and increased pest infestations. despite evidence suggesting that vulnerability to climate change is escalating, the potential for adaptation strategies agbioforum, 26(2), 2024 | 58 siregar et al. — a sustainable economic model for organic coffee production in indonesia: integrating local wisdom and key … to mitigate these negative effects is acknowledged. however, the overall trend analysis points to a concerning scale of loss in coffee production. therefore, the second hypothesis of this study is: h2: climate change has a strong implication for coffee production. relationship between capital investment and coffee production access to capital is a critical driver of agricultural yield, particularly in coffee production, as it enables producers to adopt improved practices that enhance productivity and upgrade physical infrastructure. numerous studies have investigated the role of both international and local investment in boosting coffee production, especially in developing countries. in his analysis of the impact of foreign direct investment (fdi) on coffee production in latin america, a prior study found that many farmers received capital inflows from foreign investors, which allowed them to purchase advanced machinery, increase production capacity, and adopt modern agricultural techniques. this influx of capital significantly improved productivity, particularly for smallholder farmers who previously lacked the financial means to invest in necessary inputs. the study highlights that access to funding directly influences output levels, as mechanization reduces reliance on labor, thus increasing efficiency. similarly, prior literature emphasized the importance of investment in irrigation infrastructure, noting that coffee is heavily dependent on water resources. their assessment of mexican farmers revealed that those who received subsidies for establishing irrigation systems achieved yield increases of up to 30% compared to those unable to afford such investments. this underscores the importance of capital in mitigating environmental challenges and stabilizing future production. in the indonesian context, many scholars highlighted the role of social and financial capital. their study found that coffee cooperatives, supported by local and international investors, could mobilize necessary funds that smallholder farmers often struggle to pool together for purchasing inputs such as fertilizers and quality seeds. moreover, these cooperatives facilitated knowledge sharing and the adoption of proven agricultural practices, resulting in significantly boosted yields. a prior study conducted in rwanda's coffee sector, demonstrating how capital investment improved processing facilities, thereby enhancing the quality of beans sold in premium markets. their findings indicate that capital investment is pivotal not only for increasing production but also for improving the quality of the final product, which in turn boosts profitability. scholars examined capital practices related to coffee production in brazil, focusing on government subsidies and private sector investments. their results indicated that access to capital for purchasing seeds, fertilizers, and other inputs whether through government support or commercial credit enabled farmers to adopt improved inputs and increase productivity by as much as 40%. this study highlighted that access to capital is particularly crucial for small and medium-sized farms, as it levels the playing field against larger, established coffee producers. finally, according to the prior literature it is found that expanding coffee plantation scale requires substantial financial capital. in a study conducted with farmers in ethiopia, it was observed that those able to secure investment financing could increase the size of their coffee farms, which had a direct relationship with total production levels. this research further supports the premise that financial input is essential for the growth of coffee production areas and the enhancement of coffee farming operations. the existing literature on successful coffee production consistently indicates a strong positive relationship between capital investment and coffee yield. investments facilitate the application of technology in farming, improve infrastructure, and enhance access to quality markets, ultimately leading to better production outcomes. thus, the following hypothesis is proposed: h3: capital investment has a direct positive correlation with coffee production. relationship between number of farmers and coffee production the availability of labor, including the number of farmers, significantly influences productivity levels in coffee farming. in agricultural systems, labor is intrinsically linked to the effective management of crops, proper harvesting techniques, and the overall execution of farming practices. a substantial body of literature has explored the relationship between labor and coffee production, particularly in regions where coffee cultivation is labor-intensive. for instance, nyemeck binam et al. (2003) examined technical efficiency among coffee producers in côte d'ivoire, finding that labor availability emerged as a critical factor alongside variables such as contact with extension agents, education levels, and access to coffee cultivation knowledge. their study concluded that higher farm incomes were associated with greater labor availability, which facilitated better crop organization and yield management. conversely, capital investments were also identified as essential for enhancing practices that contribute to coffee production. similarly, many scholars highlighted that coffee production in jamaica heavily relies on a substantial labor force, especially during harvest time. they noted that labor scarcity could lead to reduced output, illustrating the vital role of labor in maintaining production levels. a prior study focused on papua new guinea, where labor constraints led to delayed harvesting, and adversely affecting coffee quality. their findings indicated that larger coffee farms with sufficient labor resources could manage land and pest control more effectively, thereby improving both the quality and quantity of coffee produced. scholars also reinforced this view, asserting that the number of available farmers is directly related to the capability of managing effective coffee farms. adequate labor facilitates timely and efficient execution of crucial agronomic operations, such as pruning, fertilization, and agbioforum, 26(2), 2024 | 59 siregar et al. — a sustainable economic model for organic coffee production in indonesia: integrating local wisdom and key … harvesting. in a study conducted in ghana, results of a prior study identified labor shortages as a significant barrier to coffee cultivation among smallholder farmers. their research corroborated earlier findings, revealing that farms with sufficient labor resources achieved higher yields due to the timely execution of farming activities. moreover, the quality of coffee produced was positively influenced by labor availability, ensuring that beans were harvested at the optimal time. prior literature further underscored the importance of labor, noting that smallscale coffee farmers who could employ more labor were better positioned to implement labor-intensive practices, such as shade management and weeding, which led to improved yields. this affirms the notion that labor is essential not only for basic farming functions but also for the adoption of superior agricultural techniques that enhance productivity. scholars also extended this analysis to post-harvest processes, observing that farms with greater labor input in coffee processing achieved better quality and, consequently, better market prices. moreover, a prior study examined that the impact of labor on small-scale coffee farmers in tanzania, concluding that labor availability significantly affected coffee yields. they found that small farming operations often rely heavily on labor, and challenges related to workforce availability could substantially hinder production. prior literature reiterated that coffee production in jamaica is closely tied to labor availability, with limited labor resources leading to decreased output, especially during the critical harvesting season. overall, the literature consistently demonstrates that the presence of farmers and labor resources is a fundamental determinant of coffee production output. regions endowed with ample labor resources are better equipped to facilitate the diverse activities essential to the agricultural sector, ultimately enhancing both the quality of the produce and the overall yields. therefore, the following hypothesis is proposed: h4: the number of farmers has a direct impact and bears a positive relationship with the production of coffee. moderating impact of coffee prices on coffee production coffee has been the subject of extensive research within agricultural economics, particularly concerning its prices and production dynamics. prices are a critical determinant of profitability and significantly influence farmers' decisions regarding coffee production, investment, and productivity. empirical analyses have shown that rising prices typically encourage increased production levels, prompting farmers to expand their coffee acreage or enhance their production practices. conversely, low prices can stifle investment in new technologies, resulting in reduced yields or even prompting farmers to switch to more profitable crops. for example, a study examining the fluctuations in coffee export volumes from indonesia found that international coffee prices directly affect these volumes, as higher prices incentivize increased production. prior literature further emphasizes that social network capital plays a crucial role in farmers' efforts to secure better coffee prices in uganda, illustrating that while prices are vital for determining production levels, social structures can influence how farmers interpret and respond to price signals. in related research, scholars explored price transmission mechanisms within coffee markets, noting that international price signals often elicit immediate responses in local production decisions. they observed asymmetric price transmission, where price increases tend to be communicated to producers more effectively than price declines. prior literature highlights this phenomenon, indicating that production tends to be more responsive to rising prices, leading to volatility in production as it reacts to price fluctuations. however, the relationship between prices and production is not always straightforward. other exogenous factors, such as access to credit, labor availability, and land ownership, also play critical roles in shaping farmers' responses to price changes. cross-sectional analysis revealed that only farmers with access to resources or social capital were able to leverage high prices to boost production effectively. this finding suggests that while price is an essential factor, its influence is mediated by other conditions, including capital and labor availability. this study seeks to investigate how coffee prices impact production and how these prices may moderate other critical factors influencing production, such as land area, conditions, and labor availability in coffee-producing regions. thus, we propose the following hypothesis: h5: coffee prices moderate the relationship between land area, labour availability, and coffee production, such that higher prices strengthen the positive impact of these factors on production. research method measurement the present research employed a structured questionnaire to gather data from smallholder coffee farmers in indonesia. the questionnaire was designed to investigate various variables outlined in the theoretical model, including coffee land area, perceptions of climate change, accessibility to capital, availability of labor, and coffee prices. it was organized into several sections: demographics, beliefs about climate change and sources of funding, labor availability, and market forces. to ensure validity and reliability, the questionnaire utilized previously developed and validated scales wherever possible. participants responded to the questions using a five-point likert scale, with options ranging from "strongly disagree" (1) to "strongly agree" (5). for example, to assess perceptions of climate change, the item “climate variability has negatively impacted my coffee production” was adapted from jaramillo et al. (2011). hypothesis two, which posits a positive correlation between investment capital and the investments made by young coffee farmers, was evaluated based on the amount of capital invested in their coffee farms and access to credit, with items derived from songa & cheluget (2016). additionally, the moderating variable of coffee prices was measured through a statement reflecting farmers' perceptions of price fluctuations and their consequent agbioforum, 26(2), 2024 | 60 siregar et al. — a sustainable economic model for organic coffee production in indonesia: integrating local wisdom and key … effects on production. this structured approach allowed for a comprehensive assessment of the various factors influencing coffee production among smallholders in indonesia. data analysis methods data analysis for this study was conducted using smart-pls 3.0 software, which employs partial least squares structural equation modeling (pls-sem). this methodology was selected due to its flexibility in incorporating multiple latent factors within the model and its capacity to handle nonnormally distributed data effectively. additionally, smartpls facilitates the testing of direct relationships among variables in the conceptual model, as well as the examination of moderating effects. the analysis followed a two-step approach: first, the development and validation of the measurement model, followed by the assessment of the structural model. measurement and structural model smart-pls was utilized to confirm the reliability and validity of the constructs employed in the study. internal consistency was assessed using cronbach's alpha and composite reliability (cr), both of which are expected to exceed a threshold of 0.7. to evaluate convergent validity, average variance extracted (ave) was calculated, with values above 0.5 indicating sufficient convergent validity. discriminant validity was confirmed using the fornelllarcker criterion and the heterotrait-monotrait (htmt) ratio, ensuring that each construct remained distinct. once the measurement model was validated, the structural model was analyzed to test the hypothesized relationships. path coefficients, standard deviations, t-values, and pvalues were generated through bootstrapping with 500 subsamples, which allowed for assessing the significance of the relationships. smart-pls also provided insights into the moderating effect of coffee prices on the relationships between independent variables, such as land area, climate change, capital investment, and coffee production. through this comprehensive analysis using smart-pls, we were able to elucidate the direct and moderating effects of various factors, including coffee land area, climate change, capital investment, labor availability, and coffee prices on coffee production in indonesia. results measurement model in the initial step of our analysis, we focused on measuring reflective constructs to assess reliability and validity. this involved evaluating outer loadings, cr, cronbach's alpha, average variance extracted (ave), and the htmt ratio. outer loadings are critical indicators, with recommended values typically falling between 0.4 and 0.6. to ensure robustness, we set additional criteria for the constructs: cronbach's alpha was expected to be 0.7 or higher, ave should exceed 0.5, and the full collinearity variance inflation factors (vifs) needed to be below the threshold indicating multi-collinearity. these measures collectively affirm the reliability and validity of the constructs used in our study. table 1: construct reliability and validity. constructs items loadings alpha cr ave climate change cc1 0.853 0.846 0.890 0.620 cc2 0.843 cc3 0.783 cc4 0.708 cc5 0.739 cin1 0.861 capital investment cin2 0.784 0.858 0.898 0.641 cin3 0.875 cin4 0.788 cin5 0.677 coffee production cp1 0.817 0.930 0.941 0.614 cp10 0.719 cp2 0.791 cp3 0.786 cp4 0.784 cp5 0.826 cp6 0.810 cp7 0.751 cp8 0.803 cp9 0.742 coffee prices cpr1 0.849 0.900 0.930 0.770 cpr2 0.905 cpr3 0.881 cpr4 0.874 land area la1 1.000 number of farmers nf1 1.000 table 1 summarizes the loadings, cronbach's alpha, cr and ave for each construct in the proposed framework. the tvalues for all items associated with the constructs, including climate change, capital investment, and coffee production, exceed the threshold of 0.7, indicating strong relationships between the items and their respective agbioforum, 26(2), 2024 | 61 siregar et al. — a sustainable economic model for organic coffee production in indonesia: integrating local wisdom and key … constructs. each construct demonstrates good internal consistency, as evidenced by cronbach's alpha values surpassing the 0.7 benchmark (e.g., climate change: 0.846; capital investment: 0.858). the cr values for all constructs also exceed the 0.7 threshold, further confirming their internal consistency reliability (e.g., coffee production: 0.941; coffee prices: 0.930). additionally, the ave values for all constructs exceed the 0.5 threshold, validating convergent validity (e.g., coffee production: 0.614; coffee prices: 0.770). this indicates that the constructs account for a significant portion of the variance in their indicators. collectively, these results affirm the reliability and validity of the constructs, thereby supporting the measurement model utilized in this study. table 2: fornell larcker. cc cin cp cpr la1 nf1 cc 0.787 cin 0.569 0.800 cp 0.565 0.481 0.784 cpr 0.606 0.458 0.601 0.878 la1 0.317 0.282 0.627 0.471 1.000 nf1 0.320 0.225 0.573 0.468 0.704 1.000 table 2 presents the square root of the ave along the diagonal (in bold) and the correlations between the constructs off-diagonal. for the model to exhibit discriminant validity, the diagonal values, representing the square roots of the ave, must be higher than the correlations between constructs. the results indicate that the square root of the ave for each construct, such as climate change (0.787) and capital investment (0.800), is indeed greater than the correlations among the constructs. this finding confirms good discriminant validity, suggesting that each construct is more strongly associated with its indicators than with other constructs in the model. thus, the constructs can be considered distinct, reinforcing the robustness of the measurement model. table 3: cross-loadings. cc cin cp cpr la1 nf1 cc1 0.853 0.447 0.498 0.593 0.281 0.276 cc2 0.843 0.419 0.502 0.520 0.270 0.321 cc3 0.783 0.514 0.397 0.378 0.195 0.190 cc4 0.708 0.435 0.382 0.372 0.287 0.223 cc5 0.739 0.444 0.428 0.491 0.210 0.231 cin1 0.528 0.861 0.398 0.439 0.217 0.187 cin2 0.448 0.784 0.294 0.347 0.107 0.097 cin3 0.418 0.875 0.406 0.321 0.251 0.174 cin4 0.337 0.788 0.295 0.223 0.175 0.085 cin5 0.493 0.677 0.460 0.439 0.312 0.289 cp1 0.430 0.419 0.817 0.497 0.564 0.502 cp10 0.465 0.364 0.719 0.429 0.394 0.428 cp2 0.433 0.434 0.791 0.471 0.530 0.473 cp3 0.417 0.396 0.786 0.479 0.435 0.363 cp4 0.451 0.349 0.784 0.497 0.539 0.473 cp5 0.429 0.395 0.826 0.506 0.554 0.509 cp6 0.415 0.378 0.810 0.482 0.531 0.477 cp7 0.471 0.388 0.751 0.461 0.447 0.421 cp8 0.495 0.339 0.803 0.467 0.476 0.445 cp9 0.434 0.296 0.742 0.411 0.412 0.377 cpr1 0.491 0.303 0.511 0.849 0.409 0.396 cpr2 0.556 0.417 0.496 0.905 0.422 0.460 cpr3 0.537 0.399 0.528 0.881 0.427 0.413 cpr4 0.542 0.480 0.568 0.874 0.394 0.379 la1 0.317 0.282 0.627 0.471 1.000 0.704 nf1 0.320 0.225 0.573 0.468 0.704 1.000 cross-loadings are essential for assessing discriminant validity and are detailed in table 3. each item is expected to load higher on its respective construct than on any other construct. the results indicate that each item indeed shows higher loadings on its designated construct. for instance, item cc1 loads 0.853 on the climate change construct, while exhibiting significantly lower loadings on other constructs. this observation further reinforces the discriminant validity of the constructs. additionally, the htmt ratio serves as another criterion for evaluating discriminant validity. to establish adequate discriminant validity, htmt values should ideally be below 0.85. table 4 illustrates that the htmt values between all constructs are well below this threshold, with values such as 0.661 between climate change and capital investment, and 0.654 between coffee prices and coffee production. these findings confirm the discriminant validity of the constructs within the model, enhancing the credibility of the measurement framework. table 4: discriminant validity (htmt). agbioforum, 26(2), 2024 | 62 siregar et al. — a sustainable economic model for organic coffee production in indonesia: integrating local wisdom and key … cc cin cp cpr la1 nf1 cc cin 0.661 cp 0.634 0.518 cpr 0.685 0.501 0.654 la1 0.344 0.287 0.646 0.496 nf1 0.343 0.225 0.592 0.495 0.704 figure 1: measurement assessment model. this figure visually illustrates the measurement model, highlighting the relationships between the latent constructs and their corresponding indicators. each indicator's loading on its respective construct is clearly displayed, reinforcing the high factor loadings reported in the accompanying tables. the strong associations depicted in the figure underscore the reliability and validity of the constructs, providing a comprehensive overview of how each indicator contributes to its construct within the model. structural model all path coefficients in the analysis are significant at the 0.05 level, as indicated by their respective p-values. the results, summarized in table 5, reveal several key relationships. the path from climate change to coffee production shows a coefficient of 0.213, with a t-value of 4.129 and a p-value less than 0.001, demonstrating a significant positive relationship between perceptions of climate change and coffee production. similarly, the path coefficient for capital investment to coffee production is 0.136 (t = 3.516, p < 0.001), indicating that capital investment significantly positively impacts coffee production. the relationship between coffee prices and coffee production also reveals a substantial effect, with a path coefficient of 0.191 (t = 4.308, p < 0.001), suggesting that higher coffee prices are associated with increased production levels. furthermore, the analysis shows that land area has a considerable influence on coffee production, with a path coefficient of 0.366 (t = 7.391, p < 0.001), indicating that a larger land area significantly enhances production outcomes. additionally, the number of farmers involved in coffee production contributes positively, with a path coefficient of 0.110 (t = 2.375, p = 0.018), highlighting the importance of labor availability in boosting coffee yields. moreover, the analysis identifies significant moderating effects, particularly regarding the interaction of coffee prices with land area and climate change. the interaction with land area yields a coefficient of β = 0.160 (t = 3.254, p = 0.001), indicating that coffee prices moderate the relationship between land area and coffee production. likewise, the interaction of coffee prices with climate change shows a coefficient of β = 0.091 (t = 2.567, p = 0.010), suggesting that coffee prices also play a moderating role in the effects of climate change on production outcomes. table 5: path analysis. relationships beta standard deviation t statistics p values cc -> cp 0.213 0.051 4.129 0.000 cin -> cp 0.136 0.039 3.516 0.000 cpr -> cp 0.191 0.044 4.308 0.000 la1 -> cp 0.366 0.050 7.391 0.000 nf1 -> cp 0.110 0.046 2.375 0.018 cpr x nf1 -> cp -0.105 0.048 2.172 0.030 cpr x la1 -> cp 0.160 0.049 3.254 0.001 cpr x cc -> cp 0.091 0.035 2.567 0.010 cpr x cin -> cp -0.186 0.037 5.085 0.000 agbioforum, 26(2), 2024 | 63 siregar et al. — a sustainable economic model for organic coffee production in indonesia: integrating local wisdom and key … figure 2: structural assessment model. figure 2 visually represents the structural model, illustrating the directional relationships between the various constructs, such as the link from climate change to coffee production. the arrows indicate these connections, while the accompanying path coefficients from table 5 are depicted graphically, emphasizing their significance levels. this model effectively captures the variance in coffee production, underscoring the critical roles of climate change, capital investment, coffee prices, land area, and the number of farmers in shaping production outcomes. through this visual representation, the interdependencies among these factors become clear, highlighting their collective influence on coffee yield dynamics. discussion and implication theoretical implications this research significantly contributes to the expanding literature on agricultural productivity, particularly in the context of coffee production, by investigating the relationships among land area, climate change, capital investment, labor availability, and coffee prices. several theoretical implications arise from the findings. firstly, the positive coefficient estimate for land area reinforces previous empirical studies by wollni & zeller (2007), which assert that larger farms are typically better equipped with resources and exhibit greater productivity in coffee cultivation. the findings suggest that with more land, farmers can implement improved cultivation techniques, leading to higher yields. this supports the resource-based theory, which posits that increased land availability enables farmers to achieve economies of scale and operate more efficiently. secondly, the study confirms the detrimental effects of climate change on coffee production, aligning with the research of bunn et al. (2015), which highlight the adverse impact of weather variability on yields, particularly for arabica coffee. this research contributes to the discourse on climate resilience by emphasizing that coffee farmers face significant challenges from harsh and unpredictable weather patterns and heightened pest pressures due to climate change. this aligns with broader agricultural literature that underscores the sensitivity of coffee production to environmental fluctuations. thirdly, the findings underscore the importance of capital investment in enhancing coffee production, consistent with the prior literature, which illustrates how access to financial resources improves farming technologies and infrastructure. the study highlights the necessity of financial capital for managing environmental challenges and enhancing product quality, furthering existing research on the critical role of financial access in supporting resource acquisition and productivity among upland farmers. finally, the moderating effect of coffee prices introduces a new dimension to the analysis of price influences on production output. this finding supports earlier conclusions in the prior literature, which indicate that rising prices are more likely to stimulate coffee production compared to falling prices, which may deter investment and reduce productivity. the role of prices as a moderating factor elucidates the nonlinear interactions between market dynamics and agricultural decision-making. practical implications this study provides several crucial recommendations for policymakers, coffee farmers, and agricultural stakeholders aimed at enhancing coffee production. firstly, the strong link between land area and coffee production suggests that efforts to enhance land aggregation and optimize resource management could significantly boost productivity. according to a prior study increasing land area allows for better resource management and the application of agricultural technologies. therefore, facilitating smallholder farmers’ access to larger or more collectively managed farmland could substantially increase coffee yields. secondly, given the findings related to climate change, it is essential for policymakers to promote climate-resilient agricultural practices. encouraging methods such as agroforestry and shade-grown coffee systems, as proposed by bunn et al. (2015), can help mitigate the adverse effects of climate change on coffee production. additionally, exploring coping strategies that explain how some farmers achieve good yields under challenging conditions such as drought-resistant coffee varieties and improved rainfall management should be prioritized. thirdly, enhancing access to capital investment is vital for improving coffee production. financial institutions and government programs agbioforum, 26(2), 2024 | 64 siregar et al. — a sustainable economic model for organic coffee production in indonesia: integrating local wisdom and key … should develop products such as emergency loans or microfinance options tailored for coffee farmers. also a prior study determined that increased access to investment capital enables farmers to adopt improved practices, purchase quality inputs, and develop necessary infrastructure. supporting coffee cooperatives could also help consolidate resources among smallholders, further enhancing production capacity. lastly, the moderating effect of coffee prices on production underscores the importance of effective price stabilization mechanisms. ministries and cooperatives should implement policies that support price stability and provide market support, particularly during periods of significant price volatility. this approach would reduce farmers' exposure to price risks and encourage long-term investments in productivity enhancements. additionally, interventions aimed at improving farmers’ access to market information and their bargaining power can lead to better returns from coffee cultivation. limitations and future research direction this research has several limitations that suggest avenues for future exploration. firstly, the study is geographically limited to indonesian coffee farmers, which restricts the generalizability of the findings to other coffee-producing regions. future research could benefit from comparisons between coffee-exporting nations in africa or latin america, where the social, economic, and environmental contexts differ significantly. this broader perspective would provide valuable insights into the global factors influencing coffee production. secondly, the cross-sectional nature of the data collected limits the ability to establish causal relationships among the variables. while pls-sem effectively constructs the model, subsequent studies should employ longitudinal designs to observe changes over time, particularly regarding the impacts of climate change and price fluctuations on coffee production. thirdly, this study primarily focuses on smallholder coffee farmers. while they represent a significant segment of coffee producers, largescale commercial farms may operate under different dynamics. future research could investigate how the same factors interact with larger, profit-oriented farms, offering a comprehensive view of the relationship between farm scale, productivity, capital, and market volatility. additionally, while this study examines the mediating effect of coffee prices on key variables and production, it does not address external factors such as government policies, international trade agreements, and technological advancements. future studies should explore how these elements influence coffee production and their connections with prices, climate, and investment. finally, this research utilized smart-pls to test the hypotheses regarding the relationships between constructs. future investigations might incorporate other methodologies, such as covariance-based sem or multigroup analysis, to validate these findings. qualitative research tools like interviews or case studies could also provide deeper insights into the challenges faced by coffee farmers concerning climate change vulnerability and financial access. in summary, while this study contributes significantly to understanding the factors affecting coffee production, future research could expand on these findings by incorporating additional variables, exploring wider geographic areas, and employing diverse research methodologies to enhance the understanding of coffee production dynamics. references astuty, w., habibie, a., pasaribu, f., pratama, i., & rahayu, s. 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states. email: kesan@illinois.edu in recent decades, china has had strongly influence the demand for agricultural commodities in global markets. argentina is one of the main suppliers of soybeans in the world, and a key trading partner with china. accordingly, it is in the best interest for both countries to continue to maintain high productivity levels. one of the most important issues in agriculture is the impact of biotechnology, and specifically, the impact of new seed varieties on yield. this paper uses data from seed varieties and yields in corn, soybean and wheat for the last forty years in argentina. then, we applied different times series techniques, including structural breaks, and vector autoregressive models to analyze the statistical causality between yields and new varieties. we demonstrate how introducing new varieties in argentina positively affects yields, especially for soybeans and wheat. these results are important as argentina has struggled to reach a political consensus on the implementation of property rights to create the right incentives to produce new varieties. given the importance of these new varieties in yields, there are significant economic gains from the implementation of more secure property rights. these empirical results are essential to inform the discussion and the efforts to implement legislative changes in countries like argentina, which could benefit from such reforms. furthermore, it highlights the importance of property rights in agriculture in emerging economies participating in international markets. keywords: argentina, property rights, seed varieties, biotechnology and agriculture, international agricultural markets, china, brazil, united states. introduction in the last two decades, the rise of china in the global economy introduced impressive changes to commodity markets (jepson, 2020). china, india, and other emerging economies developed quickly, and their demand for commodities, raw materials, and other resources seems neverending. furthermore, forecasts for the next decade highlight the still strong influence of china in the growth of global demand (usda, 2023). as a result, several countries rich in natural resources came to play an essential role in providing these necessary resources. as this paper shows, the growth in demand impacted agricultural markets, and countries with exceeding exporting surpluses, like argentina, brazil, and the united states, became willing partners facilitating growth in these emerging markets (feenstra & hong, 2022; klein & luna, 2023; klein & vidal luna, 2021; phélinas & choumert, 2017). furthermore, high commodity prices and growing demand incentivized these countries to grow crops constituting agricultural commodities. the international integration of agricultural markets continues to advance, and the exporter countries seek to find ways to increase production and support the growing global demand (klein & vidal luna, 2021). nonetheless, given the difficulty of expanding land use without displacing other crops or cattle production, the main determinants of growth are agricultural technology, chemicals, and investment in research and technology, with a particular emphasis on biotechnology (fuglie, 2018; klein & vidal luna, 2021). one of the booming innovation markets in this area is the one for new seed varieties (kesan & gallo, 2007; kolady & lesser, 2009b). accordingly, investment in research and development in new varieties is one of the most promising areas to keep increasing yields and, simultaneously, to develop ecofriendly and sustainable technologies that enables continuous improvements in yields (naseem, oehmke, & schimmelpfennig, 2005). in addition, these countries rich in agricultural output need to develop an institutional and legal regulatory environment that fosters this type of investment, which could positively impact productivity and trade (entine et al., 2021). accordingly, this paper analyses the case of argentina, brazil, and the u.s. and the evolution of production, yields, and new seed varieties in three main commodity crops: corn, soybean, and wheat. these countries are the leading exporters of these three crops, and developing their productive capabilities is necessary to keep these agricultural commodity markets functioning properly. furthermore, they have different intellectual property rights regimes. while the united states has a robust property rights system with extensive protection for property rights, argentina is still in the process of finding better ways to protect innovation, and property rights protections for innovations in seed varieties could be stronger. this paper addresses the critical relationship between new seed varieties as they come to the market. it focuses on argentina’s case, the evolution of property rights in new varieties, and its relationship to yields. this paper employs a time-series analysis and develops a model for endogenous structural breaks to determine the pattern of new varieties and yields over forty year. then, this study uses a var model to show that introducing new varieties of seeds granger-causes yields. this result highlights the need to create appropriate regulatory mailto:agallo@unf.edu mailto:kesan@illinois.edu agbioforum, 27(1), 2025 | 111 gallo & kesan — supplying agricultural commodities to china: the case of argentina and the impact of property rights... environments that allow for secure property rights and high investment in research and development to foster growth in both yields and productivity. emerging countries like argentina will significantly benefit by making institutional changes a reality. this paper is organized as follows. the second section presents the impressive strength of china in international agricultural markets and its impact on the leading grain exporters. the third section shows the evolution of property rights for new seed varieties in soybean, corn, and wheat in some of these countries. this paper contrasts the evolution of these markets in argentina with that of the u.s. and brazil. given the productive background and the evolution of property rights on seeds, the fourth section utilizes data from argentina’s yields and seed varieties in these three crops to establish the relationship between these two variables. this analysis utilizes time series analysis and dynamic modeling to establish the type of timeseries variables and a causal relationship between these variables. the fourth section discusses the results and provide interpretation in the policy arena. finally, the conclusions highlight the empirical evidence that yields are determined by the number of new varieties in argentina, especially in soybean and wheat crops. china’s impact on international agricultural markets. a review of literature in the last few decades, international agricultural markets have boomed due to the solid economic growth of emerging countries like china and india. these countries, especially china, exhibited strong economic growth, a growing middle class, and the consequent need for agricultural products to support their population (bussolo et al., 2012). in this environment, since the early 2000s, the boom of the chinese economy needed a reliable supply of raw materials and agricultural products (fukase & martin, 2016). these authors provide evidence of the changes in food demand in china and the need to expand food imports to account for increasing food demand due to economic growth and diet changes (fukase & martin, 2016). however, the chinese economy could not supply all the needed materials (jamet & chaumet, 2016). as they explain, china faced the dilemma between producing soybean and corn, and the decision to focus its resources on the latter while expanding imports of soybean had an impact on international markets (jamet & chaumet, 2016). accordingly, the chinese government sought to expand its economic and political linkages worldwide to secure such goods and services. countries like argentina and brazil became critical providers of agricultural products for the chinese economy. in particular, the provision of soybeans and soybean oil and meal were the main highlights of the economic relationship between the exporting countries and china. in addition, corn and wheat are also important in international trade in agriculture. these factors increased commodity prices, promoting efforts to supply the necessary crops. soybean prices went from $164.23 a metric ton in the second quarter of 2001 to $615.85 by the 1 see fred economic data from the i.m.f. at https://fred.stlouisfed.org/series/psoybusdq 2 see fred economic data from the i.m.f. at https://fred.stlouisfed.org/series/pmaizmtusdm 3 see fred economic data from the i.m.f. at https://fred.stlouisfed.org/series/pwheamtusdm third quarter of 2012 (it stands at $554 in the first quarter of 2023).1 similarly, corn prices went from $90 a metric ton in august 2001 to $332 in july 2012 (the current price is $284 in march 2023).2 finally, the price of wheat was $104 a metric ton in august 2001 and reached $318 by november 2012. the current price of wheat is $312 in april 2023.3 this section analyzes the role of china in international agricultural markets in the context of northsouth and south-south trade. the steady growth of china, and the demand for commodities around the world, have emphasized understanding the role of latin america and other regions in this pattern of economic development. as casanova, xia, & ferreira (2016) find, there is evidence that the export dependency of latin american countries on china has increased since the early 2000s. most of this dependency is focused on the export of commodities to china (casanova et al., 2016). the chinese national strategy to reach out for commodities, particularly agricultural ones, is supported by the actions of the china oil and foodstuffs corporation (cofco). as fares (2023) explains, the chinese government has positioned cofco as an essential instrument for economic development and has provided a substantial advantage for china in international agribusiness (fares, 2023). furthermore, the export dependency from latin america and the need for china to secure markets for their manufacturing goods has reinforced the partnership between latin american countries and china. according to giraudo (2020), the chinese government’s strategies include several instruments: land purchases, acquisitions and investments, investment in infrastructure and financial support, and veto of “technological events.” (giraudo, 2020). accordingly, the author concludes that “[a] closer look at china-latin america relations through the lens of dependency analysis has proven effective in problematizing the discourse southsouth cooperation and positive current account balances, as well as highlighting imbalances underpinning the asymmetric relations at play. however, trade should not be understood as the cause of this core-periphery dynamic, but rather as a reflection of the sterilization of economies in south america” (giraudo, 2020, at 73-74). in this context, we would like to understand better how the domestic policy decisions in latin american countries affect their insertion in the international patterns of trade. smith & katovich (2017) utilized a gravity trade model to analyze if the different g.m.o. policies affect the trade relationships between argentina and brazil. they found that g.m.o. policies are significant for trade relationships in the case of argentina but less critical for brazil (smith & katovich, 2017). this evidence highlights the importance of property rights regimes in agribusiness international relations, especially in the case of argentina. if we consider not just g.m.o. seeds but the general framework for the production of new varieties and the regulatory regime in place to secure property rights, we can better understand the impact of these regimes on the productivity of the https://fred.stlouisfed.org/series/psoybusdq https://fred.stlouisfed.org/series/pmaizmtusdm https://fred.stlouisfed.org/series/pwheamtusdm agbioforum, 27(1), 2025 | 112 gallo & kesan — supplying agricultural commodities to china: the case of argentina and the impact of property rights... agricultural sector and its impact on international trade. as chen et al. (2022) explain, “since the soybean supply chain is detailed and complex, the execution of rules, regulations, and systems requires excellent central coordination with easy and comprehensive information access. a national designated body with a clear role and responsibility to coordinate different stages in the supply chain is a must for success.” (chen et al., 2022, at 11). furthermore, zhou, sheldon, & eum (2018) demonstrated that recognizing property rights in seed varieties increases technology transfer from developed countries, like the u.s., to developing ones. therefore, having a solid system for managing property rights in varieties is extremely important. this importance cannot be overstated, as international agricultural markets are highly competitive. in addition, yan et al. (2023) analyze the market structure for soybean and they demonstrate that there is no market power from either china or countries like brazil, argentina, and the u.s. in the international soybean market. this result suggests that market competition an important characteristic for developing competitive advantages in agriculture. in china, the movement from agriculture to industry mobilized workers to cities and opened the opportunity to improve productivity in agriculture (deng et al., 2008). at the same time, a growing urban population with rising income pushed the demand for food and other natural resources needed in industrial production (jiang, seto, & bai, 2015). accordingly, the chinese government faced a political dilemma in deciding which agricultural products to focus their production and investment efforts to reach the most efficient result. china then increased its production of corn, while decreasing the area for soybeans and wheat (http://www.fao.org/faostat/en/#data ) in this environment, china’s economic growth created the need to buy soybeans from international markets. for example, china’s soybean oil production increased rapidly since 1995, from 1.2 million tons in 1995 to 16.6 million in 2019, increasing 1216.5% (http://www.fao.org/faostat/en/#data). in order to sustain this industrial growth, china resorted to international markets for the needed raw material, and imports of soybeans boomed in the same period. this demand growth in international markets made countries like argentina, brazil, and the u.s., the leading suppliers of agricultural commodities to china and other emerging economies. while most of china’s agricultural imports stayed almost constant throughout the period or increased at modest rates, the increase in soybean imports is impressive. from 1995 until 2021, imports of soybeans went from 2.91 million tons to more than 99 million tons, an increase of 3304%. during the same period, corn imports increased by 178.4% (all this growth in 2020 and 2021), while soybean oil and wheat imports decreased by 24.9% and 13.4%, respectively (http://www.fao.org/faostat/en/#data). china’s increase in international demand for soybeans would have impacted international prices, given the importance of china in global demand. accordingly, the growing participation of china in global markets is determined by specific chinese production policies. furthermore, these policies have consequences for the countries supplying soybeans. accordingly, chinese participation in global demand increased from less than 10% of world imports in 1995 to more than 60% in 2019 (http://www.fao.org/faostat/en/#data). in particular, the chinese expansion increased agricultural prices, displaced some crops to others, and created a race for innovation in new technologies to improve yields and foster productivity (rositano et al., 2022). in this highly competitive environment, investments in new seed varieties, and the emerging role of biotechnology, became helpful tools for countries to position themselves in the international arena (smith & katovich, 2017). one of the most important tools to capture investments in research and development is establishing an effective legal environment to accompany these market opportunities. this paper focuses on the increase in production of corn, soybeans, and wheat, three of the main cash crops in argentina. in the case of soybeans, the three top producers (u.s., brazil, and argentina) produce nearly 80% of the world’s supply (http://www.fao.org/faostat/en/#data). countries have expanded production in the last twenty years by increasing the harvested area. however, the increase in production is much higher than the growth in the harvested area, highlighting strong growth in yields. the most significant productivity improvements came from emerging markets like russia, ukraine, brazil, argentina, and bolivia (http://www.fao.org/faostat/en/#data). this result highlights the importance of technology to agriculture, as improved yields are the most critical source of sustainable growth. furthermore, the high concentration of production in a few countries emphasizes these countries’ role in export markets, as we will explain below. we can show a similar pattern in the case of corn production. the four more important producers are argentina, brazil, china, and the united states, representing almost 67% of world production (http://www.fao.org/faostat/en/#data). as in the case of soybeans, most of the gains in the last twenty years are due to yield improvements, with russia, ukraine, brazil, indonesia, romania, and india being the countries with the highest increase in productivity. nonetheless, all these countries are far below the high yields obtained in the united states. there is more diversification among producing countries in wheat production. the top four producers in the world represent just 47.5% of total world production. in addition, in the last twenty years, the countries with the highest increases in production are russia, ukraine, argentina, india, and pakistan. the strong presence of china in international markets and the boom in agricultural products in the countries described above have created exceptional opportunities for growth and investment. as mentioned before, one of the main drivers of yields is innovation in seed varieties, especially in biotechnology. accordingly, strong property rights protection will attract innovations and support continuous growth. the following section describes the evolution of these rights in argentina, brazil, and the u.s. property rights in seed varieties in the u.s., brazil and argentina in recent decades, innovation in plant varieties has become http://www.fao.org/faostat/en/#data http://www.fao.org/faostat/en/#data http://www.fao.org/faostat/en/#data http://www.fao.org/faostat/en/#data http://www.fao.org/faostat/en/#data http://www.fao.org/faostat/en/#data http://www.fao.org/faostat/en/#data agbioforum, 27(1), 2025 | 113 gallo & kesan — supplying agricultural commodities to china: the case of argentina and the impact of property rights... one of the most critical drivers of yields and technology in agriculture (kolady & lesser, 2009a). these authors provide evidence of the positive effect of strong intellectual property rights protection, new varieties and increased yields in wheat production. new seeds and genetic innovations are constantly discovered, and many companies, universities, and other governmental organizations compete to innovate in this field. as a result, there is a large and growing market for seed varieties internationally4. this market is expected to grow both in new varieties and investments in biotechnology, which will lead the way to the future of agriculture (oecd, 2018). furthermore, the extreme competition has led to the concentration of the seed market in several multinational companies with a global reach (oecd, 2018). in order to understand the growing importance of new seeds in agriculture, this section describes how property rights in new varieties are assigned in different countries. two main mechanisms exist to register a new variety in the united states. first, inventors can use the plant variety protection act (pvpa) certificate5, instituted by the plant variety protection patent act of 1970.6 second, inventors can obtain a utility patent, which provides much more substantial property rights protection (patent act of 1952).7 patents for agricultural seeds were reinforced and defined by the u.s. supreme court, which allowed for patented vegetable organisms through the critical case of diamond v. chakrabarty,8 and in j.e.m. ag supply, inc. v. pioneer hi-breed int'l, inc.9 in most other countries, utility patents are not allowed for plant innovation, and the standard certificate for new seed varieties is the one supported by the upov-78 and upov-91 agreements.10 as a result, argentina and brazil are signatories of upov and have certificates following these regulatory prescriptions. upov certificates are similar to the pvpa ones granted in the u.s. since regulatory frameworks are not homogeneous, there may be some differences in definitions, enforcement, and management of the upov regulatory systems across these countries. furthermore, using property rights protection in emerging countries is not necessarily the only tool for reaping the benefits of investment in innovation, but it is an important one.11 looking at the evolution of applications and granting of rights for new seed varieties, we can observe a boom and steady growth in some certificates (figure 1). first, there was a boom in the number of patents granted in the united states. the opening of the patent system to new seed varieties in the 1980s produced a boom in this type of rights. inventors perceive that patents grant more robust property rights protection and prefer applying for them. as a result, applications increased from 253 in 1984 to 1,406 in 2013 (the highest level), representing a 455% increase. this increase is mirrored by the increase in new patents granted, which grew from an average of 200 patents per year in the mid-1980s to an average above 1,000 patents a year in the late 2010s (figure 1). second, while there is an increase in pvpas in the u.s., the volume of applications is far from that of patents (figure 1). nonetheless, the number of applications has almost doubled since the 1980s. figure 1 source: own elaboration based on data from upov database, at https://www.upov.int/portal/index.html.en 4 the global seed market reached an estimated 63 billion in 2021 and is expected to grow to 86.8 billion by 2026. globenewswire, the global seed market size is estimated to be valued at usd 63.0 billion in 2021 and is projected to reach usd 86.8 billion by 2026, recording a cagr of 6.6%, at https://www.globenewswire.com/news-release/2021/04/08/2206399/0/en/the-global-seed-market-size-isestimated-to-be-valued-at-usd-63-0-billion-in-2021-and-is-projected-to-reach-usd-86-8-billion-by-2026-recording-a-cagr-of-6-6.html (last accessed on 6/30/2021). 5 see 7 u.s.c. § 2351(a) (2000). 6 see the u.s. plant variety protection act (pvpa), 7 u.s.c. §§ 2321-2582, was enacted by congress in 1970 to encourage the development of new varieties of crops and to make them available to the public. 7 see 35 u.s.c. § 101 (2000) 8 447 u.s. 303 (1980).“in chakrabarty, decided in 1980, the court ushered in the age of biotechnology patenting, holding in a 5-4 split that genetically modified bacteria fell within the scope of patent-eligible subject matter." mark d. janis & jay p. kesan, u.s. plant variety protection: sound and fury . . .?, 39 hous. l. rev. 727 (2002), at 7. 9 534 u.s. 124 (2001) 10 international convention for the protection of new varieties of plants, dec. 2, 1961, (as revised at geneva on oct. 23, 1978, and on mar. 19, 1991) available at upov lex 11 see, tripp, robert, louwaars, niels, and eaton, derek. “plant variety protection in developing countries. a report from the field.” food policy. 32 (2007): 354-371. the authors provide evidence of the adoption of plant variety protection systems in developing countries and the performance of these systems. see also, srinivasan, c. c. “plant variety protection, innovation, and transferability: some empirical evidence.” review of agricultural economics. v. 26, n. 4: 445-471. providing empirical evidence on the advantages of introducing these property rights regimes in developing countries. the author presents evidence of the importance of these regimes for local breeders. 0 200 400 600 800 1000 1200 1400 19 84 19 85 19 86 19 87 19 88 19 89 19 90 19 91 19 92 19 93 19 94 19 96 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 n um be r of a pp lic at io ns applications for new varieties (number of applications by year) argentina brazil united states (pvpa) united states (patents) 0 200 400 600 800 1000 1200 1400 19 84 19 85 19 86 19 87 19 88 19 89 19 90 19 91 19 92 19 93 19 94 19 96 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 n um be r of a pp lic at io ns rights for new varieties granted (number of applications by year) argentina brazil united states (pvpa) united states (patents) https://www.upov.int/portal/index.html.en https://www.globenewswire.com/news-release/2021/04/08/2206399/0/en/the-global-seed-market-size-is-estimated-to-be-valued-at-usd-63-0-billion-in-2021-and-is-projected-to-reach-usd-86-8-billion-by-2026-recording-a-cagr-of-6-6.html https://www.globenewswire.com/news-release/2021/04/08/2206399/0/en/the-global-seed-market-size-is-estimated-to-be-valued-at-usd-63-0-billion-in-2021-and-is-projected-to-reach-usd-86-8-billion-by-2026-recording-a-cagr-of-6-6.html https://upovlex.upov.int/en/convention agbioforum, 27(1), 2025 | 114 gallo & kesan — supplying agricultural commodities to china: the case of argentina and the impact of property rights... third, there is a substantial increase in the number of certificates in argentina and brazil. while the number of applications is less impressive than patent applications in the u.s., patents in brazil increased from an average of about 100 applications in the late 1990s to an average of about 330 applications in the late 2010s. argentina shows an increase from an average of nearly 200 in the mid-1990s to 330 in the later 2010s (graph 1). finally, the number of applications and the growth of patent applications in the u.s. is much higher than the evolution of requests in argentina and brazil. this underscores the size of the market but also due to the more robust protection offered by patents. given the global nature of the market for new seeds, there is a particular interest in knowing how the regulatory system attracts international inventors to register their varieties in the particular local country. in this regard, argentina shows a mixed performance. while in the 1990s, non-residents overtook residents in applying for new varieties; there was a sudden reversal in 2003 when non-residents' applications dropped significantly (figure 2). figure 2 source: own elaboration based on data from upov database, at https://www.upov.int/portal/index.html.en this drop-in non-resident application coincides with the phenomenal expansion of production, especially in soybeans (zhou et al., 2018). as these authors explain, statistical evidence shows that countries with a upov-type regime receive more imports of new seed varieties from the u.s. than countries without such a system. accordingly, the authors highlight the importance of property rights in the transfer of innovation. however, the poor performance of non-residents in argentina may be related to the contentious relationship between some multinational companies, particularly monsanto, and the government. monsanto tried to obtain patent protection for its seed varieties, and the company sued the argentine government (filomeno, 2013a; varella & marinho, 2013). even though the lawsuit failed, it produced a confrontational situation between the government and multinational companies. in the case of brazil, there is no such drop in the participation of non-resident applicants (figure 2). in the case of the u.s. regulatory framework, there is a clear distinction between the pvpa and the utility patent system. non-residents prefer the utility patent system, which provides stronger property rights protection than the pvpa (figure 2). this preference indicates why international investors sought similar protection levels in other emerging markets, like argentina and brazil. nonetheless, in brazil and the u.s., the participation of non-residents' applications increased throughout the period (figure 3). but this is not the case in argentina, where the participation of non-residents declined after 2001 and did not recover until 2017 (figure 4). this behavior is the opposite compared to brazil and may be an indication of the argentine regulatory framework's perceived difficulties and contentious characteristics. figure 3 source: own elaboration based on data from upov database, at https://www.upov.int/portal/index.html.en 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% m ov in g av er ag e -p er ce nt ag e of n on -r es id en t a pp lic at io ns percentage of applications by non-residents (three-year moving average) argentina brazil united states (pvpa) united states (patents) 0 50 100 150 200 250 300 350 400 450 500 19 90 19 91 19 92 19 93 19 94 19 96 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 n u m b er o f ap p lic at io n s argentina: applications by residency of applicant (number of total applications) residents non residents total 0 50 100 150 200 250 300 350 400 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 n u m b er o f a p lic at io n s brazil: applications by residency of applicant (number of total applications) residents non residents total 0 100 200 300 400 500 600 700 19 85 19 86 19 87 19 88 19 89 19 90 19 91 19 92 19 93 19 94 19 96 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 n u m b er o f a p p lic at io n s united states (pvpa): applications by residency of applicant (number of total applications) residents non residents total 0 200 400 600 800 1000 1200 1400 1600 19 84 19 85 19 86 19 87 19 88 19 89 19 90 19 91 19 92 19 93 19 94 19 96 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 n u m b er o f a p p lic at io n s united states (patents): applications by residency of applicant (number of total applications) residents non residents total https://www.upov.int/portal/index.html.en https://www.upov.int/portal/index.html.en agbioforum, 27(1), 2025 | 115 gallo & kesan — supplying agricultural commodities to china: the case of argentina and the impact of property rights... additionally, there is a difference in the rates of approval of applications. while in brazil and the u.s., the number of applications and the number of rights awarded increase over time, in argentina, there is a divergence between these two variables (figure 4). even though there may be some delay between applications and the number of granted certificates in the u.s., we observe a close positive correlation between both variables (figure 4). furthermore, this correlation is similar for the pvpa and the patent systems. we see a similar situation in brazil, where the correlation is also positive (figure 4). however, in argentina, we observe a divergence between these series (figure 4). while the number of applications increased over time, the number of certificates awarded decreased. this behavior is at odds with the situations in brazil and in the u.s. and provides some evidence of the contentious relationship between the argentine government and its agencies with the companies investing in new varieties. figure 4 source: own elaboration based on data from upov database, at https://www.upov.int/portal/index.html.en in short, this section provides evidence of the growing need to invest in new technologies to foster productivity in agriculture, and the benefits for countries like argentina, brazil, and the u.s., to benefit from the increasing demand from china and other faster-growing economies (brookes & barfoot, 2020). the authors provide evidence of the additional farm revenue created by genetically modified agricultural seeds. they estimate these benefits to be significant and almost evenly distributed among farmers in developed and developing countries. furthermore, almost 70% of the gains come from increases in yields (brookes & barfoot, 2020). then, a well-defined property rights framework is necessary for integrating new seed varieties into different crops to appropriate the benefits of these new technologies. nonetheless, we observe differences in the setup of the regulatory systems in these countries, which creates different incentives for investors. in particular, the contentious relationship between the argentine government and the agricultural sector is well documented (filomeno, 2013a). the author explains the differences in state capacity in i.p. and research and development as the main factors in determining the strength of the i.p. regime. in particular, the author applies this framework to explain the differences in argentina, brazil, and paraguay (filomeno, 2013b). fuck et al. (2008), also describe the differences in i.p. regimes in argentina and brazil. given argentina’s weak property rights protection and the continuous political debate about the importance of having secure property rights, we need to establish the relationship between these property rights and yields. that is, by establishing the relationship between productivity and the legal rights on new varieties, we can determine if having more secure property rights is going to produce the expected results in agriculture. the following section explores the relationship between new varieties and the yield of different crops in the case of argentina. this evidence is important to determine the need for a welldefined property rights system and a more collaborative relationship between the regulatory agencies and the companies investing in research and development. property rights and yields: a time series analysis the previous section analyzed how the different regulatory systems for property rights generate different evolution of innovations and the presence of available varieties in each 0 50 100 150 200 250 300 350 400 450 19 91 19 92 19 93 19 94 19 96 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 th ir d y ea r a ve ra ge argentina: applications vs. titles granted (three year average) applications titles granted 0 50 100 150 200 250 300 350 400 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 th ir d y ea r a ve ra ge brazil: applications vs. titles granted (three year average) applications titles granted 0 200 400 600 800 1000 1200 1400 19 85 19 86 19 87 19 88 19 89 19 90 19 91 19 92 19 93 19 94 19 96 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 th ir d y ea r a ve ra ge u.s.a. (patents): applications vs. titles granted (three year average) applications titles granted 0 100 200 300 400 500 600 700 800 900 19 86 19 87 19 88 19 89 19 90 19 91 19 92 19 93 19 94 19 96 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 th ir d y ea r a ve ra ge u.s.a. (pvpa): applications vs. titles granted (three year average) applications titles granted https://www.upov.int/portal/index.html.en agbioforum, 27(1), 2025 | 116 gallo & kesan — supplying agricultural commodities to china: the case of argentina and the impact of property rights... country. this section presents a time series statistical analysis for argentina, showing a positive relationship between new seed varieties and productivity (mcarthur & mccord, 2017). such a relationship is vital in establishing effective property rights systems that promote innovation in new varieties. since argentina has struggled to reach a political consensus on this matter, establishing this statistical relationship is essential and can help to highlight the need to advance adequate changes to the current regulations. data for our statistical analysis, we use data from the instituto nacional de semillas (inase), the official agency that registers new seed varieties for the country12. while agriculture has been significant in argentina, the inase started to register new varieties in 1978 (gallo & kesan, 2006). accordingly, we collected information on the new varieties of corn, wheat, and soybeans presented to the inase each year. we also collected yield data from the food and agriculture organization (f.a.o.), which contains a complete database for our analysis13. the argentine government also compiles these databases, so we use official argentine data to establish our statistical model. time series methodology when dealing with time series, one of the main issues is the presence of non-stationarity. accordingly, we run unit root tests to see if the variables are stationary. in addition, another issue may be the presence of structural changes in the time series, especially when it comes to government permits (seed varieties) and agricultural yields. regulatory changes can influence the first variable, while the second is subject to weather changes, international conditions, and prices. accordingly, we use unit root tests with endogenous breaks to detect some of these changes. we employed the ben-david, lumsdaine, & papell (2003) methodology to test for two structural breaks in the data. we determined the break endogenously by letting the data self-select the break date. finding these breaks is essential in identifying shocks in any of the variables. furthermore, analyzing these structural breaks can shed light on the patterns in the evolution of seed varieties analyzed in the previous section. once we establish the time structure of these variables, we use a v.a.r. analysis to see if these variables are related to each other. we also provide cointegration tests to see if there is a long-term relationship between these variables and a granger causality test. as explained above, we are not building a parametric econometric model, given the need for more information and variables. however, we are using time series analysis to corroborate the existence of a relationship between property rights and productivity in main crops in argentina. unit root tests and structural breaks first, we use a simple dickey-fuller and the phillipsperron tests for unit roots to assess the stationarity of the time series. these tests will help us determine the dynamic process that characterizes each variable (table 1). these results show we can reject the unit root hypothesis for all these variables. in most cases, the variables are trend stationary, exhibiting a long-term trend, which we will consider in our analysis. table 1: unit root tests. phillips-perron test augmented dickey-fuller test variable rho z trend t  trend lags corn new varieties -16.348 (**) -3.874 (***) -2.445 -0.300 2 -36.771 (***) -5.429 (***) 0.041 (0.0126) -1.959 -0.441 0.011 (0.0154) 2 corn yield -2.327 -1.096 -0.561 -0.037 2 -38.973(***) -5.385 (***) 0.021 (0.0043) -3.330 (*) -0.676 0.016 (0.0054) 1 soybean new varieties -27.602 (***) -4.295 (***) -3.157 (**) -0.395 5 -42.442 (***) -6.115 (***) 0.045 (0.0134) -3.363 (**) -0.813 0.0386 (0.0166) 1 soybean yield -25.870 (***) -4.176 (***) -2.387 -0.400 1 -46.888 (***) -7.568 (***) 0.0134 (0.0025) -4.534 (***) -1.22 0.0129 (0.0036) 1 wheat new varieties -32.654 (***) -4.814 (***) -1.029 -0.141 3 -38.290 (***) -7.233 (***) 0.0384 (0.0093) -2.203 -0.739 0.0292 (0.0151) 3 wheat yield -7.219 -2.126 -0.137 -0.014 5 -32.327 (***) -6.137 (***) 0.0151 (0.0029) -6.232 (***) -1.765 0.0265 (0.0047) 2 note: (***) significant at 1%, (**) significant at 5%, and (*) significant at 10%. trend: standard errors in parenthesis. to further explore the evolution of these variables over time, this section also explores the presence of structural breaks in these time series. accordingly, we can relate these changes to further policy or economic developments, which may have affected the typical trajectory of these 12 see inase at https://www.argentina.gob.ar/inase 13 see faostat at http://www.fao.org/faostat/en/. variables. then, we perform a unit root test with two breaks in the trend in two different unknown tests (lumsdaine & papell, 1997). following lumsdaine & papell (1997), the augmented dickey-fuller test can be represented by https://www.argentina.gob.ar/inase http://www.fao.org/faostat/en/ agbioforum, 27(1), 2025 | 117 gallo & kesan — supplying agricultural commodities to china: the case of argentina and the impact of property rights... 𝛥𝑦𝑡 = 𝜇 + 𝛽𝑡 + 𝜃1𝐷𝑈1𝑡 + 𝛾1𝐷𝑇1𝑡 + 𝜃2𝐷𝑈2𝑡 + 𝛾2𝐷𝑇2𝑡 + 𝛼𝑦𝑡−1 + ∑ 𝛥𝑦𝑡−𝑖 𝑘 𝑖=1 + 𝜀𝑡 (1) where we assume that tbj (j=1,2) is the time breaks. the dummy variables take the following values: dujt=1 and dtjt=t-tbj if t>tbj and 0 otherwise. this model is estimated for all possible pairs (tb1, tb2) where tbj=2,…, t-1, j=1,2, and t is the number of observations after adjusting by the first differencing and the lag length k.14 for each tbj, the number of lags, k, is determined by selecting an a priori value of k and running the model. if the lag k is significant, choose this number of lags; otherwise, reduce the number of lags by one and repeat the procedure until a lag becomes significant. if no lags are significant, then k=0. we then compute the t-statistic  for all the possible distinct pairs of break dates tb1 and tb2. the break dates are the values for tb1 and tb2, for which the t-statistics of  are minimized. if the minimum t-statistic is lower than the critical value, the null hypothesis of unit root is rejected. this methodology allows for endogenously identifying structural breaks in the time series. as a result, we can offer statistically significant support to the presence of a structural break in a given moment. we estimate three different models. first, model a.a. assumes two breaks in the intercept but no breaks in the slope of the function (1=2=0). second, model ca assumes two breaks in the intercept and one break in the slope (2=0). finally, model cc assumes two breaks in both the intercept and the slope. model aa 𝛥𝑦𝑡 = 𝜇 + 𝛽𝑡 + 𝜃1𝐷𝑈1𝑡 + 𝜃2𝐷𝑈2𝑡 + 𝛼𝑦𝑡−1 + ∑ 𝛥𝑦𝑡−𝑖 𝑘 𝑖=1 + 𝜀𝑡 model ca 𝛥𝑦𝑡 = 𝜇 + 𝛽𝑡 + 𝜃1𝐷𝑈1𝑡 + 𝛾1𝐷𝑇1𝑡 + 𝜃2𝐷𝑈2𝑡 + 𝛼𝑦𝑡−1 + ∑ 𝛥𝑦𝑡−𝑖 𝑘 𝑖=1 + 𝜀𝑡 model cc 𝛥𝑦𝑡 = 𝜇 + 𝛽𝑡 + 𝜃1𝐷𝑈1𝑡 + 𝛾1𝐷𝑇1𝑡 + 𝜃2𝐷𝑈2𝑡 + 𝛾2𝐷𝑇2𝑡 + 𝛼𝑦𝑡−1 + ∑ 𝛥𝑦𝑡−𝑖 𝑘 𝑖=1 + 𝜀𝑡 the results show some structural changes in the evolution of these time series (table 2). the new varieties in the three main crops exhibited a structural change around 1997. this is interesting, as argentina entered the upov78 agreement in 1991, and there was an initial rush to register new varieties. in addition, the country entered a recession in 1998, which, together with low international agricultural commodity prices, could have impacted investment in research and development. table 2: unit root test with two breaks. variable t t1 t2 t1 t2 tb1 tb2 lags corn new varieties -11.56 (***) -1.73 (*) -1.95 (***) -0.34 (***) 1998 1986 1 corn yield -8.451 (***) -3.39 (***) 3.29 (***) 2011 2000 1 soybean new varieties -10.07 (***) 2.62 (**) 1.68 -4.85 (***) -5.93 (***) 2012 1997 4 soybean yield -9.55(***) -2.71 (**) 2.21 (**) 2.68 (**) 1997 2008 1 wheat new varieties -9.52 (***) 6.27 (***) 3.05 (***) 1997 2006 1 wheat yield -7.10 (**) -2.77 (**) -3.49 (***) -2.26 (**) 2003 1987 4 note: critical values (source ben-david et al., 2003) model aa: -6.74 (1%), -6.43 (2.5%), -6.16 (5%), -5.89 (10%) model ca: -7.19 (1%), -6.86 (2.5%), -6.62 (5%), -6.37 (10%) model cc: -7.19 (1%), -6.95 (2.5%), -6.75 (5%), -6.48 (10%) corn yields had a positive increase in 2000, which reverted by 2011. this behavior may indicate the increase in commodity prices starting in the early 2000s and the corresponding decrease with the global crisis in 2008. soybean yields exhibit a similar pattern, with a positive change in slope in 1997 and a negative shock in 2008. finally, wheat exhibits a slightly different behavior, with a negative break in 1987 and another in 2003. in the 2000s, most of the price boom in agricultural commodities corresponded to soybeans, indicating the changes in wheat yield. to assess the dynamic relationship between yields and new varieties in each of these crops, we perform a vector autoregressive model (v.a.r.) between these variables. furthermore, we use this vector autoregressive model to test for granger causality (hamilton, 1994). as a result, 14 finally, the errors terms t are assumed to be a martingale difference sequence and satisfies e(t 2|t-1,…)=2, e(|t| i|t-1,…)=i (i=3,4), supt e(|t| 4+|t-1,…)=< for some >0. 15 accordingly, 𝒙1𝑡 = [ 𝒚1,𝑡−1 𝒚1,𝑡−2 ⋮ 𝒚1,𝑡−𝑝 ] 𝐱21𝑡 = [ 𝒚2,𝑡−1 𝒚2,𝑡−2 ⋮ 𝒚2,𝑡−𝑝 ] we should assess the direction of the statistical causality between these variables. this v.a.r. follows a general form, 𝑦1𝑡 = 𝑐1 + 𝐴1 ′ 𝑥1𝑡 + 𝐴2 ′ 𝑥2𝑡 + 𝜀1𝑡𝑦2𝑡 = 𝑐2 + 𝐵1 ′ 𝑥1𝑡 + 𝐵2 ′ 𝑥2𝑡 + 𝜀2𝑡(16) where the variables of the v.a.r. are categorized into two groups represented by the (n1x1) vector y1t and the (n2+1) vector y2t. x1t is an (n1px1) vector containing lags of y1t and the (n2px1) vector x2t containing lags of y2t.15 the (n1x1) and (n2x1) vectors c1 and c2 contain the constant terms of the v.a.r., while the matrices a1, a2, b1, and b2 contain the autoregressive coefficients. following hamilton (1994), "the group of variables y1 is said to be block-exogenous in the time series sense with respect to the variables in y2 if the elements in y2 are of no help in improving a forecast of any variable contained in y1 that is based on lagged values of all agbioforum, 27(1), 2025 | 118 gallo & kesan — supplying agricultural commodities to china: the case of argentina and the impact of property rights... the elements of y1 alone” [pp. 309]. in order to determine the optimal number of lags, k, we run the v.a.r. model setting the number of lags equal to five and using the schwartzbayes information criterion (sbic) to choose the optimal number of lags. the v.a.r. results show the dynamic interaction between these variables: table 3: v.a.r. model for corn varieties and yield. cornvt cornyt cornvt-1 -0.059 (-0.38) 0.007 (0.23) cornvt-2 0.313 (2.12) 0.058 (1.85) cornvt-3 0.173 (1.19) 0.023 (0.75) cornyt-1 0.092 (0.14) 0.314 (2.16) cornyt-2 -0.463 (-0.68) 0.145 (1.00) cornyt-3 1.207 (1.84) 0.294 (2.11) constant -4.80 (-1.07) 1.804 (1.88) chi-squared 55.62 (***) 269.93 (***) note: t-values in parenthesis. the v.a.r. system satisfies stability conditions as all the eigenvalues lie inside the unit circle. table 4: v.a.r. model for soybean varieties and yield. soyvt soyyt soyvt-1 0.192 (1.16) 0.028 (1.04) soyvt-2 0.327 (1.93) 0.084 (3.02) soyyt-1 0.103 (0.12) 0.032 (0.22) soyyt-2 0.572 (0.67) 0.175 (1.22) constant -3.75 (-0.45) 5.840 (4.19) chi-squared 14.42 (***) 30.40 (***) note: t-values in parenthesis. the v.a.r. system satisfies stability conditions as all the eigenvalues lie inside the unit circle. table 5: v.a.r. model for wheat varieties and yield. wheaton wheatyt wheatvt-1 0.170 (1.20) 0.062 (1.50) wheatvt-2 0.118 (0.88) 0.051 (1.29) wheatvt-3 -0.127 (-1.15) 0.006 (0.19) wheatvt-4 0.303 (3.01) 0.080 (2.71) wheatyt-1 0.611 (1.15) 0.276 (1.79) wheatyt-2 0.449 (0.83) -0.099 (-0.63) wheatyt-3 -0.897 (-1.65) 0.051 (0.32) wheatyt-4 1.094 (2.14) 0.148 (0.99) constant -8.583 (-1.54) 4.458 (2.73) chi-squared 78.35 (***) 94.25 (***) note: t-values in parenthesis. the v.a.r. system satisfies stability conditions as all the eigenvalues lie inside the unit circle. in this case, we are interested in evaluating if the number of new varieties granger-causes yield in the respective crop. accordingly, the granger causality tests show that for corn, the number of new varieties does not cause yields, nor yields cause the number of new varieties (table 6). this result is consistent with galushko (2012), who shows that property rights protection is less important for hybrid crops than genetically modified ones. there is strong evidence that the number of varieties granger-cause the soybean yields, but yields do not cause the number of new varieties. finally, new wheat varieties seem to cause yields, while yields weakly cause the number of varieties (table 6). table 6: granger causality test results. cornv corny excluded variable chi-squared p-value chi-squared p-value corny 4.4607 0.216 cornv 4.2606 0.235 soyv soyy chi-squared p-value chi-squared p-value soyy 0.493 0.782 soyv 11.364 0.003 wheaty wheatv chi-squared p-value chi-squared p-value wheaty 8.5986 0.072 wheatv 9.6321 0.047 accordingly, these results show a relationship between the number of varieties and yields. furthermore, the direction of the causality is from the number of new varieties towards the yields, implying that having more investment in new varieties should lead to improvements in yields. this relationship is solid in the case of soybeans and more moderate for wheat. however, there is no clear indication for the case of corn. this evidence is aligned with the evolution of the legal/regulatory system in argentina and previous work in this area. first, as explained in previous research, there is a difference in the need for substantial property rights in soybeans and endogamic plants and corn, which is a hybrid (kesan & gallo, 2005). as the authors show, in argentina, there is an overinvestment in new varieties for corn, whose biological characteristics offer more secure property rights protection than soybean. accordingly, this overinvestment could explain the lack of causality of new corn varieties on yields, since most of the economic benefits have already been exhausted. second, multinational companies and the argentine government engaged in contentious litigation regarding the patenting of soybean seed varieties, which are the ones that show a more substantial effect on yields. finally, there is an intense debate concerning changes to the legal/regulatory system. different stakeholders and political parties realize that the system needs updates to capture new technologies and investments in innovation. however, there needs to be a clear path to a consensus regarding the characteristics of the new system. this evidence shows the potential benefits of reaching an agreement among different parties and enacting legislation that allows for better integration of innovation in the agricultural sector. interpretation and discussion of results the previous results show that there is a relationship between legal rights for plant varieties and yields, especially in the case of wheat and soybeans. the time agbioforum, 27(1), 2025 | 119 gallo & kesan — supplying agricultural commodities to china: the case of argentina and the impact of property rights... series analysis provides evidence of the causal direction of the relationship between the number of new varieties and the yields in each of these crops. these results highlight the importance of having secure property rights to promote continuous gains in yields. we can highlight the impact on the following issues. despite the recent slowdown in chinese economic growth, it is expected that the demand growth for agricultural products in international markets is expected to continue (usda, 2023). this will require countries like argentina to produce policies and foster investments that promote growth and allow them to sustain, or increase, their participation in international markets. nonetheless, given the land competition with other crops and uses, the gains should come from productivity improvements. in this arena, innovation in new seed varieties and advances in biotechnology are crucial elements for success. then, having a property rights system that rewards innovation, and promotes the use of biotechnology in agriculture is an economic necessity to the agricultural sector. this paper shows that argentina does not have a strong protection like the u.s., or a system like brazil, and then there are continuous problems to institute better legislation. furthermore, this paper also shows that despite the insecure property rights in argentina, there is a strong statistical causality from the new varieties introduced in the market and the yields in soybean and wheat. this empirical evidence is significant in informing the legislative disputes and highlighting the losses due to lack of agreement. we can infer that argentina’s continuous success in supplying the need of international markets depends on its investment in property rights protection, among other investments. furthermore, these results can inform efforts in property rights protection in other countries, which can assess how innovations affect agricultural productivity. conclusions this paper used data from new seed varieties and yields in argentina to show the importance of new varieties in productivity. argentina is one of the leading agricultural exporters in the world, and the country has benefited from the impact of china on international agricultural markets. this paper highlights the strong growth in demand in the last two decades from china, and the rush from several countries to meet that demand. in particular, argentina, brazil, and the u.s. are the leading exporters of corn, soybeans, and wheat. in this context, the evidence underscores the need to improve yields, given the low availability of new lands and the cost of substituting other crops and reducing production elsewhere, which could lead to misalignments in the productive structure of a given country. if these countries want to continue selling to china, and maintain their competitive status, they must find ways to keep increasing their production. in this context, one of the essential tools for increasing productivity is the adoption of gmos and new seed varieties in agriculture. the explosion of investment in innovation and the development of new seeds worldwide introduced opportunities and challenges for these countries to take advantage of these discoveries. in particular, this paper shows the workings of the regulatory systems in argentina, brazil, and the u.s. in increasing the number of new varieties in agriculture. in this context, this paper uses data to analyze the case of argentina, establishing the relationship between new varieties and yields. the statistical evidence shows a strong causality between new varieties and yields for soybeans and wheat, while the evidence is inconclusive for corn. as explained before, given the lack of secure intellectual property rights, there is an overinvestment in the number of corn varieties in argentina, which could lead to diminished productivity effects on yields. nonetheless, the strong positive effects for soybeans and wheat underlie the relationship between innovation and yields and the losses for having an insecure property rights system in place. this empirical evidence highlights the need for an adequate regulatory system to capture new varieties and incentivize research and development investment. this is particularly important in the case of argentina, where there are intense confrontations between the government, private companies, and different stakeholders from the agriculture sector. as the confrontation persists and the parties cannot reach an agreement, there are productivity losses in agriculture due to the uncertainty in the regulatory system. this study opens the door for further avenues of research. first, it would be interesting to address the effects of changes in property rights and productivity in countries that make legislative efforts to improve 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ding et al., 2021; goodell, 2020). first identified in wuhan, china, towards the end of 2019, the virus rapidly expanded to become a worldwide pandemic, prompting the world health organization (who) to announce a global health emergency during the first quarter of 2020 (liu, yue, & tchounwou, 2020). for the purpose of containing it, the global community implemented widescale public intervention measures involving lockdowns, travel bans, shutdowns of businesses, and mandated social distancing actions. although the measures were indispensable for the wellbeing of the people, they caused significant economic downturns and led to a global recession (haroon et al., 2021; zaremba et al., 2022). economic impacts were specifically drastic for emerging and developing nations, like iraq, with structures marked by vulnerabilities, lack of industrial diversification, and high dependence on revenues generated from commodities (abid et al., 2022; asa’d, nour, & atout, 2023). the iraqi economic environment, with industrial, service, tourist, and agricultural businesses, offers an ideal case to study the disparate impacts of the outbreak across sectors (wikipedia, 2020). the emergency measures undertaken by the iraqi government, involving mobility restrictions, suspensions of commercial activities, came with major impacts on both demand and supply sides, highlighting systemic weaknesses of corporate structures, governance processes, and financial strength (abid et al., 2022; pagano & zechner, 2022). understanding sector differences in coping with large-scale disturbances like covid-19 is essential for developing successful corporate strategies as well as national policy structures. the literature highlights the fact that the pandemic's influence on the performance of companies is not uniform, but rather depends on some organisational factors, sector type, size, ownership structure, and geographical settings (al amosh & khatib, 2023; ding et al., 2021). for example, asa’d et al. (2023) reported finding that, for palestine, some firm-level performance indicators were hardly affected, while the pandemic substantially modified the linkage between financial indicators and the valuation of companies. research conducted throughout the arab world has also highlighted the double-faced role of the pandemic towards the demand and supply side, with the resulting need for more targeted intervention mechanisms to enhance the strength of the economy (abid et al., 2022). to evaluate corporate performance during crises, forwardlooking financial indicators are essential. tobin’s q— defined as the ratio of a firm’s market value to the replacement cost of its assets—has emerged as a reliable metric of value creation, investor sentiment, and managerial effectiveness in uncertain environments (chung & pruitt, 1994; yermack, 1996). it reflects both current market position and investor expectations regarding future profitability. prior studies have employed tobin’s q to examine factors such as board composition (yermack, 1996), capital structure (pagano & zechner, 2022), financial health (mustika & abidin, 2024), and external shocks (haroon et al., 2021). during the pandemic, research has shown that covid-19 indicators—such as daily infections, case counts, and mortality rates—significantly affect firm valuation and market outcomes (adikari & buddhika, 2023; mustika & abidin, 2024; zaremba et al., 2022). for instance, adikari & buddhika (2023) found links between infection rates and stock index fluctuations in sri lanka, driven by policy and media responses. zaremba et al. (2022) https://orcid.org/0000-0003-4171-1223 mailto:majid.mohammed@uofallujah.edu.iq agbioforum, 27(1), 2025 | 99 jaber — analysing the impact of covid-19 on iraq’s stock exchange: performance of agri-business and other sectors using tobin’s q also observed rising volatility and risk premiums in global bond markets due to pandemic developments. at the firm level, adaptability, strong governance, and industry-specific factors have been identified as key buffers against such macroeconomic shocks (ding et al., 2021; pagano & zechner, 2022). despite the growing body of research on the economic fallout of covid-19, empirical investigations focusing specifically on iraq remain limited. this is particularly evident in relation to inter-sectoral dynamics and the performance of firms within the agri-business domain. the agricultural sector plays a pivotal role in iraq’s national priorities, contributing to food security, employment, and diversification efforts beyond the oil industry. however, it remains highly susceptible to disruptions in logistics, labour availability, and consumption patterns during global crises (abid et al., 2022; asa’d et al., 2023). simultaneously, nonagricultural sectors, such as industry, tourism, and services, are integral to iraq’s macroeconomic stability and labour market performance (wikipedia, 2020). in light of this context, the current study aims to address this research gap by conducting a systematic evaluation of the impact of covid-19 on corporate performance within the ise. particular emphasis is placed on agri-business firms, although industrial, service, and tourism sectors are also incorporated into the analysis. tobin’s q is employed as the central metric for evaluating performance, using monthly data spanning from march 2020 to december 2022. the study adopts the pdols method to estimate long-term sectoral relationships and capture the nuances of performance variability (kao & chiang, 2001; stock & watson, 1993). the primary objectives of this research are threefold: first, to classify listed firms in iraq according to their efficiency in market value generation during the pandemic; second, to analyse the relationship between covid-19 indicators (new infections, total cases, new deaths, total deaths) and firm performance across sectors; and third, to quantify the extent and direction of the pandemic’s influence on corporate value within the iraqi context. the study posits that the performance of firms, as measured through tobin’s q, will differ across sectors, and that pandemic-related variables will have statistically significant associations with firm value, with agri-business entities displaying distinctive behavioural patterns. the anticipated findings are expected to offer valuable implications for stakeholders, including investors, business leaders, and policymakers, by shedding light on the relative resilience of iraq’s economic sectors to external shocks. furthermore, this study contributes to the academic discourse on crisis response, sectoral adaptation, and sustainable recovery strategies within the framework of emerging and resource-dependent economies (abid et al., 2022; ding et al., 2021; haroon et al., 2021). figure 1 presents the conceptual framework of the study, outlining the anticipated relationships between covid-19-related indicators and corporate performance, as reflected by tobin’s q. figure 1: hypothesis scheme of research. literature review adikari & buddhika (2023) analysed the implications of the covid-19 pandemic on the stock market performance of the colombo stock exchange. employing a log-linear multiple regression approach, they assessed the relationship between stock indices and various pandemic-related variables. their findings demonstrated a positive correlation between daily covid-19 cases and death figures with stock market indices, suggesting that heightened media attention and corresponding governmental measures played a significant role in shaping market dynamics. additionally, the imposition of travel restrictions exhibited a negative association with market performance, highlighting the adverse effects of mobility constraints on investor sentiment, market responsiveness, and economic activity. the study offered empirical insight into how public health emergencies, through multiple pandemicrelated factors, have shaped behaviours within financial agbioforum, 27(1), 2025 | 100 jaber — analysing the impact of covid-19 on iraq’s stock exchange: performance of agri-business and other sectors using tobin’s q markets (adikari & buddhika, 2023). abid et al. (2022) investigated the economic repercussions of the pandemic across arab nations, revealing that covid-19 generated a dual shock impacting both supply and demand structures. their research underscored the urgent need for effective economic policies to address the prolonged consequences of the crisis, particularly in economies already burdened by structural weaknesses. the study documented the detrimental impact on financial systems, including heightened fragility within financial markets and the broader service sector. it called for a cohesive policy response, including fiscal and monetary interventions led by arab central banks and financial institutions, to contain the pandemic’s spread and to stimulate economic recovery. furthermore, the authors advocated for coordinated international action to mitigate the broader consequences of the crisis through joint recovery strategies. the al amosh & khatib (2023) study analysed the performance of companies within g20 nations during the pandemic, with particular reference to the role of covid19 and the resulting significance for environmental, social, and governance (esg) measures. employing an exhaustive methodological approach consisting of descriptive statistics, correlation matrices, fixed-effects regression, and the generalised method of moments (gmm) estimator, the analysis established the disruption of corporate financial performance by the pandemic as significant. the findings further illustrated the moderating role of esg dimensions, operating as buffers helping firms to preserve financial stability across the crisis period. the analysis substantiated the increasing importance of the dimensions of esg as organisational resilience-enhancing strategic instruments as well as investor confidence attractors amidst uncertain circumstances (al amosh & khatib, 2023). mysaka & derun (2021) aimed to determine dominant financial indicators affecting tobin’s q among publicly traded companies, differentiating between income-sensitive and growth-oriented investors. the quantitative examination incorporated two sets of data consisting of 75 new york stock exchange (nyse)-listed companies and 34 nasdaq companies, as a representation of some of the largest global companies, according to forbes. the observations were that dividend payments significantly appealed to incomeoriented investors, whereas revenue performance captured the attention of growth investors the most. the conclusion drew from the study was that investments were significantly determined by the reliability and transparency of financial reporting. therefore, it advocated for corporate managers to focus on financial policies corresponding to the preferred preferences of both types of investors to increase recognizability and retainability. there is a growing volume of literature dealing with the different effects of covid-19 on corporate performance within sectors and regions. asa’d et al. (2023) studied companies listed on the palestine exchange between 2019 and 2020 to evaluate the pandemic's effect on financial metrics including return on assets (roa), return on equity (roe), earnings per share (eps), and stock return. although there was no significant effect on these financial parameters, the study registered the disruption caused by the pandemic to tobin’s q’s relationship with firm valuation measures, especially with price-to-earnings (p/e) ratios. from a wider lens, ding et al. (2021) compared over 6,700 companies across 61 economies, concluding financially sound companies or firms with lower pandemic exposure could help to curb stock price decline. larger companies, together with companies with family or government ownership, also showed higher resilience during the pandemic times. pagano & zechner (2022) also revealed that soundfully structured liquidity positions alongside pre-crisis financial policies helped absorb financial shock, thus underscoring the active role played by fiscal planning to build organisational flexibility. for indonesia, mustika & abidin (2024) investigated the years 2019 to 2022 on the study of banking firms, revealing that the capital adequacy ratio (car), asset size, and human capital were significantly correlated with roa. in contrast, operating efficiency (bopo) and nonperforming loans (npls) had negative impacts on the financial performance. the findings present further proof of the intricate relationship between internal financial indicators and external crises, showcasing the varied influence of the covid-19 pandemic on the financial performance of banks within emerging markets. covid-19 pandemic on 8 february 2020, the novel coronavirus was identified as a new pathogen responsible for infecting the respiratory system, particularly in cases of pneumonia first detected in wuhan in late 2019. initially referred to as "novel pneumonia" by china's national health commission, the disease caused by this virus underwent a change in its official english designation on 22 february of the same year. this renaming occurred prior to the formal endorsement of the terminology by the who on 1 february. however, the chinese-language designation of the virus remained consistent throughout this period (de stefani, 2021). the classification of a virus as an epidemic is generally applied when it spreads within a geographically confined area, even if that area expands over time. however, when the disease surpasses containment measures and begins to spread extensively across multiple countries or regions, it is reclassified as a pandemic. the who formally declared the virus a pandemic early in 2020, following its rapid global transmission (liu et al., 2020). in the context of iraq, the first confirmed case of covid-19 was reported on 24 february 2020, when the ministry of health announced that an iranian religious student in najaf had tested positive for the virus. the infected individual was immediately isolated, along with nine persons who had been in close contact with him. in response, the general directorate of education in najaf suspended all educational activities across the governorate until further notice. following the initial case, the virus continued to spread throughout the country. by 10 june 2020, the total number of confirmed infections had reached 15,414, with the number of fatalities rising to 426 (wikipedia, 2020). corporate performance and tobin's q scale at the onset of 2020, the covid-19 pandemic precipitated a significant global economic contraction. numerous studies agbioforum, 27(1), 2025 | 101 jaber — analysing the impact of covid-19 on iraq’s stock exchange: performance of agri-business and other sectors using tobin’s q have concluded that the economic disruption resulting from this health crisis has surpassed that of previous pandemics or epidemics in scale and severity (goodell, 2020). according to zaremba et al. (2022) and haroon et al. (2021), the pandemic triggered a substantial rise in market risk across global financial systems. in response, both developed and developing nations implemented a range of unconventional fiscal policy interventions aimed at reducing uncertainty and restoring investor confidence. however, the absence of coordinated international efforts limited the overall effectiveness of these measures, thereby diminishing their potential impact on financial market stability. yermack (1996) investigated the association between the structures of corporate governance and the value of firms by observing the financial and governance attributes of 452 large us firms between 1984 and 1991. the investigation established a negative association between board size and the corporate value, measured by tobin’s q. using fixed, random, and ordinary least squares (ols) techniques, yermack established that small boards were related to better managerial efficiency and good financial performance. the investigation further controlled for other performance proxies, namely, return on assets (roa) and return on sales (ros), and eventually confirmed the proposition the tobin’s q measures the value created by good governance mechanisms. methods this study employs a quantitative panel data approach to investigate the impacts of covid-19 variables on the financial performance of firms listed on the iraq stock exchange. the date range for the dataset is between march 2020 and december 2022, with the observations on a monthly frequency from eleven companies operating in the agricultural, industrial, services, and tourism sectors. these companies were picked on the criteria of uninterrupted listing along with the persistent availability of financial information and information related to the pandemic across the study horizon, generating a balanced panel of 374 firmmonth observations (11 firms for 34 months). financial data were extracted from iraq stock exchange publications and corporate financial statements, whereas data on the pandemic—covering new cases, total infections, new fatalities, and cumulative deaths—were compiled from the world health organization and the iraqi ministry of health (who, 2022; wikipedia, 2020). firm performance was assessed using tobin’s q, calculated as the ratio of the sum of the market value of equity and the book value of liabilities to total assets (chung & pruitt, 1994; yermack, 1996). this metric captures how capital markets evaluate a firm's worth relative to its asset replacement cost, rendering it particularly relevant in crisis contexts due to its forward-looking characteristics (pagano & zechner, 2022). the key independent variables included monthly and cumulative statistics for covid-19 infections and deaths, consistent with the methodology applied in recent studies investigating pandemic-induced effects (abid et al., 2022; adikari & buddhika, 2023). to accommodate firm-level unobserved heterogeneity and temporal dynamics, appropriate panel data estimation techniques were employed (stock & watson, 1993). tests for cross-sectional dependence, specifically the breuschpagan lm and the pesaran scaled lm, indicated statistically significant interdependencies across the crosssectional units (breusch & pagan, 1980; pesaran, 2004). unit root diagnostics using pesaran’s cips test (hadri, 2000; pesaran, 2004) revealed that tobin’s q was stationary in levels (i(0)), whereas all pandemic-related indicators exhibited integration of order one (i(1)). given the presence of variables with differing integration properties, the pedroni residual-based cointegration test was utilised to ascertain the existence of a stable long-term relationship among the variables (pedroni, 2004). longterm linkages between covid-19 indicators and firm performance were then estimated through the pdols technique (kao & chiang, 2001; saikkonen, 1991). this method effectively addresses the issues of endogeneity and serial correlation by incorporating leads and lags of the first-differenced regressors. due to its suitability for small panels and established application in crisis-period analyses, pdols is considered an appropriate estimator in this context (abid et al., 2022; asa’d et al., 2023). the empirical specification proceeds by initially defining the dynamic model in its first-differenced form as follows: ∆𝑌𝑡 = λyt−1 + ∑ αδyt−i + βxt + εt k−1 i=1 … … … … … (1) where: ∆𝑌𝑡 = change in firm performance (tobin’s q) at time t λ = parameter for lagged performance α = parameter(s) for additional lags xt = vector of pandemic indicators (new infections 𝑋1𝑡, cumulative infections 𝑋2𝑡, new deaths 𝑋3𝑡, cumulative deaths 𝑋4𝑡 subsequently, the long-term equilibrium association among the variables is represented as follows: yt = α0 + βxt + ∑ φxt−i ∗ + εt 𝑘 i=−𝑘 … … … … … (2) where: yt = firm performance (tobin’s q) α0 = intercept xt = vector of independent variables as above φ = coefficients for leads and lags of differenced regressors xt−i ∗ incorporating both forward and backward lags (ranging from –k to +k) of the first-differenced independent variables serves to mitigate issues related to potential endogeneity and autocorrelation. this comprehensive pdols specification accounts for the presence of variables with differing integration orders, addresses cross-sectional dependence, and corrects for endogenous relationships, thereby producing consistent and efficient long-run coefficient estimates regarding the influence of covid-19-related indicators on firm performance (kao & chiang, 2001; pedroni, 2004). all econometric estimations and related statistical procedures were executed using eviews version 12 and spss version 26. descriptive analysis and graphical representations were performed in microsoft excel. since the study relied exclusively on agbioforum, 27(1), 2025 | 102 jaber — analysing the impact of covid-19 on iraq’s stock exchange: performance of agri-business and other sectors using tobin’s q secondary data sourced from publicly accessible platforms, ethical clearance was not deemed necessary. this methodological structure provides a sound empirical foundation for evaluating the effects of pandemic-induced shocks on firm performance across various sectors in iraq, yielding findings of relevance to academic researchers, investors, and policymakers focused on financial stability and resilience during periods of crisis (asa’d et al., 2023; ding et al., 2021; pagano & zechner, 2022). results descriptive statistics performance indicator (tobin’s q) table 1 presents the descriptive statistics of firm performance, measured using tobin’s q, across the entire study period. the summary includes the mean, minimum, and maximum values, along with the standard deviation, and an analysis of the mean values for the firm performance index (tobin’s q) reveals notable variation among the companies studied from march 2020 to december 2022. the mosul theme cities company (smof) recorded the highest average performance, with a tobin’s q of 4.838866, indicating that its share value significantly exceeded the cost of replacing its assets. the peak performance for smof occurred in october 2020, reaching a tobin’s q value of 8.503403, while the same month in 2021 marked its lowest performance at 3.728576. the standard deviation of 0.966835 points reflects substantial fluctuation in the firm’s performance throughout the study period. table 1: some descriptive statistics for the average performance of the selected companies for the period (march/2020december/2022). company mean maximum minimum std. dev. aisp 0.320810 0.466408 0.141438 0.079422 ibsd 1.195107 1.785583 0.456821 0.339813 tasc 1.004552 1.270556 0.529947 0.204793 iitc 0.789570 1.467058 0.102924 0.422890 amef 1.325651 2.336251 0.481208 0.581546 smof 4.838866 8.503403 3.728576 0.966835 airp 1.673304 2.193209 1.070628 0.333741 imap 1.932477 3.641774 0.559287 0.900904 hnti 2.624231 3.406746 2.226938 0.335329 hbag 3.068328 4.244178 2.566234 0.454337 sbpt 3.223325 7.014445 1.932982 1.001610 all 1.999657 8.503403 0.102924 1.394161 in contrast, the iraqi company for seed production (aisp) ranked lowest among the selected firms, with an average tobin’s q of 0.32081, suggesting that its market valuation remained well below the replacement cost of its assets. the company’s highest performance was recorded in january 2022 at 0.466408, while the lowest, 0.141438, was observed in the same month of 2021. the relatively low standard deviation of 0.079422 indicates a consistent underperformance over the observed timeframe. among the remaining firms, most demonstrated satisfactory performance levels, with tobin’s q values exceeding one, except for the iraqi company for carpets and furnishings (iitc), which showed persistently low average performance during the study period. table 2 and figure 2 illustrate the average annual firm performance, as measured by the tobin’s q index, across the study period from 2020 to 2022. table 2: average annual performance of the study sample (2020-2022). companies 2020 2021 2022 iraqi seed production (aisp) 0.283845  0.289485  0.392939  baghdad soft drinks (ibsd) 0.777926  1.422362  1.315504  asiacell (tasc) 0.716946  1.092065  1.156711  iraqi carpets & furnishings (iitc) 0.391170  0.751443  1.159698  middle eastern fish (amef) 0.542353  1.907172  1.396880  al mosul for funfairs and tourist investment (smof) 4.086977  4.807813  5.496494  agricultural products marketing (airp) 1.255281  1.788757  1.906203  almansour pharmaceuticals (imap) 1.064674  2.786899  1.801224  national tourism investment company (hnti) 2.612534  2.430928  2.827280  baghdad hotel (hbag) 2.775860  3.513782  2.866599  baghdad iraq public transport (sbpt) 2.219613  3.325570  3.957507   good performance: overvaluation occurs when a company's market shares are worth more than the cost of replacing its assets.  defaulting performance: undervalued means that a company's market shares are worth less than the cost of replacing its assets. moreover, table 2 and figure 2 reflect a generally strong performance among the majority of firms in the sample during the 2020–2022 period. this assessment is based on tobin’s q values exceeding one, which indicate that market valuation surpassed the replacement cost of assets. in 2020, six companies exhibited satisfactory performance, agbioforum, 27(1), 2025 | 103 jaber — analysing the impact of covid-19 on iraq’s stock exchange: performance of agri-business and other sectors using tobin’s q increasing to nine firms in 2021 and reaching ten in 2022. however, certain firms displayed inconsistent performance over the three-year span, including ibsd, amef, imap, hnti, and hbag. conversely, upward performance trends were observed in aisp, tasc, iitc, smof, airp, and sbpt. figure 2: annual average performance of selected companies for the period (2020-2022). corona indicators table 3 provides summary statistics for the covid-19 indicators over the study period, including the mean, minimum, maximum, and standard deviation values, and during this period, the mean number of newly reported covid-19 cases was 72,511. the highest recorded level occurred in august 2021, reaching 324,851 cases, whereas the lowest figure was observed in march 2020, with only 506 cases reported. the standard deviation of 75,666 cases reflects substantial variability in the incidence of new infections throughout the analysis period. regarding cumulative cases, the average number recorded was 6,015,401. the peak was reached in october 2022, with cumulative infections totalling 12,304,890, while the lowest count at the start of the observation period was 899 cases. the standard deviation of 4,108,061 for cumulative infections indicates considerable fluctuation over time. figure 3 illustrates the progression of both new and cumulative cases across the research period, revealing marked volatility in both metrics. notably, a pronounced decline in new infections is observed following august 2021. this trend corresponds with a marginal rise in cumulative cases, suggesting the presence of a potential inverse association between the number of new infections and the cumulative total during the evaluated timeframe. table 3: some descriptive statistics of corona indicators for the period (march/2020-december/2022). statistic 𝐗𝟏 𝐗𝟐 𝐗𝟑 𝐗𝟒 mean 72511 6015401 746 72755 maximum 324851 12304890 2624 126788 minimum 506 899 4 70 std. dev. 75666 4108061 801 38849 figure 3: new monthly and cumulative infections of the corona for the period (march/2020-december/2022). agbioforum, 27(1), 2025 | 104 jaber — analysing the impact of covid-19 on iraq’s stock exchange: performance of agri-business and other sectors using tobin’s q the mean number of newly reported deaths due to covid-19 during the study period stood at 746. the peak occurred in july 2020, when fatalities rose to 2,624, while the lowest number was recorded in november 2022, with only 4 deaths. the standard deviation of 801 suggests considerable variation in the number of new fatalities across the research timeframe. for cumulative deaths, the average during the study period was 72,755. the highest cumulative total was documented in july 2022, reaching 126,788 deaths, whereas the lowest cumulative figure at the outset of the study period was 70 deaths. a standard deviation of 38,849 reflects notable fluctuations in the cumulative death toll over time. figure 4 illustrates the progression of both new and cumulative covid-19related deaths throughout the observation period. the patterns displayed closely mirror those observed for infection rates, with distinct variability evident in both newly reported and cumulative fatalities. additionally, the figure highlights a marked decline in new deaths following august 2021. this trend corresponded with a marginal increase in cumulative deaths, indicating a likely inverse relationship between the two variables over the course of the study. figure 4: new monthly and cumulative deaths due to the corona for the period (march/2020-december/2022). variation in the performance of companies table 4 demonstrates evident variation in the average values of the performance index (tobin’s q) across the selected companies during the period from march 2020 to december 2022. to statistically confirm the presence of significant differences in corporate performance among these firms, a one-way analysis of variance (anova) was conducted. the outcomes of this analysis are presented in table 4. table 4 reveals statistically significant differences in the average performance index (tobin’s q) among the selected companies over the period from march 2020 to december 2022. this finding leads to the rejection of the null hypothesis and the acceptance of the alternative hypothesis, as the p-value (0.000) falls below the 0.01 level of significance. these results indicate that corporate performance, as measured by tobin’s q, varied across the sample during the research period. however, this does not imply that all firms differ significantly from one another in terms of performance. some companies may exhibit similar or converging performance trends, while others may show greater divergence. table 4: the single variance of the differences in the average performance index among the selected companies for the period (march/2020-december/2022). p-value statistics (f) average squares degrees freedom sum of squares sources of variation 0 170.271** 59.759 10 597.594 inter-firm 0.351 363 127.401 error 373 724.995 total note: **statistically significant differences at a significant level (0.01). therefore, to identify homogeneous groups of companies based on performance levels, a post-hoc test, such as duncan’s multiple range test, was employed. the results of this classification are provided in table 5. moreover, table 5 outlines the classification of companies in the study sample into performance-based groups according to their average tobin’s q values over the research period. using duncan’s test, the companies were divided into seven statistically homogeneous categories, each representing a distinct level of market performance. notably, the smof emerged as the sole member of the highest-performing group, with an average tobin’s q of agbioforum, 27(1), 2025 | 105 jaber — analysing the impact of covid-19 on iraq’s stock exchange: performance of agri-business and other sectors using tobin’s q 4.84, indicating that its market valuation substantially exceeded the replacement cost of its assets. the second tier comprises the hbag and the sbpt, both exhibiting robust market performance, with average tobin’s q values of 3.07 and 3.22, respectively. the hnti occupies a separate, third group, with a commendable average of 2.62. in the fourth group, the airp and imap demonstrated moderate performance levels, recording average values of 1.67 and 1.93. the fifth group includes tasc, ibsd, and amef, whose tobin’s q scores ranged from approximately 1.00 to 1.33, reflecting market valuations marginally above asset replacement costs. the iitc was classified into the sixth group, with a lower average performance index of 0.79, indicating market undervaluation. lastly, the aisp was placed in the seventh and lowest-performing category, with an average tobin’s q of 0.32, highlighting a significant disparity between its market value and the cost of its assets. this grouping underscores the substantial variation in corporate performance across sectors during the covid-19 period and offers critical insight into the diverse economic effects experienced by industries within iraq. table 5: duncan test results for differences in average performance indicators among selected companies. company homogenous groups of companies 1 2 3 4 5 6 7 smof 4.838866 hbag 3.068328 sbpt 3.223325 hnti 2.624231 airp 1.673304 imap 1.932477 tasc 1.004552 ibsd 1.195107 amef 1.325651 iitc 0.789570 aisp 0.320810 sig. 1.000 0.281 1.000 0.072 0.186 0.135 1.000 note: the table is generated from spss-26 program outputs. correlations table 6 shows the values of partial correlations (rxixj.y) between the variables of the corporate performance model. the results of the partial correlation analysis between the corporate performance index and each of the covid-19 indicators, while controlling for the influence of the remaining variables, reveal no statistically significant associations. this conclusion is supported by the weak correlation coefficients and the corresponding probability values, all of which exceeded the conventional significance level of 0.05. these findings suggest the absence of meaningful relationships between the covid19 indicators and corporate performance. consequently, the observed variations in the performance index of the companies under investigation throughout the period from march 2020 to december 2022 cannot be attributed to fluctuations in covid-19 indicators (namely, new infections, cumulative infections, new deaths, and cumulative deaths). instead, these changes appear to be driven by other underlying factors beyond the pandemicrelated metrics. table 6: partial correlations between the corporate performance index and the indicators of the corona pandemic. x1 x2 x3 x4 y 0.060 0.023 -0.046 0.015 prob. 0.205 0.652 0.372 0.769 ct and module root certification tests table 7 presents the outcomes of four cross-sectional dependence tests, all of which confirm the presence of cross-sectional dependence at the 1% level of significance for the dataset and for each variable under investigation. this result implies that any variation or external shock affecting a specific variable in one company is likely to influence the same variable across other companies within the sample, and a second-generation panel unit root test, the pesaran cips test, is applied to address cross-sectional dependence. as shown in table 8, the tobin’s q is stationary at level (i(0)) at the 1% significance level, while the covid-19 variables are non-stationary at level but become stationary after first differencing (i(1)). based on these results, the dynamic ordinary least squares (dols) method is used for model estimation following confirmation of co-integration. table 7: ct certification test results. variable breusch-pagan lm pesaran scaled lm bias-corrected scaled lm pesaran cd y 439.1019*** 36.6227*** 36.4560*** 15.3718*** x1 1870.000*** 173.0535*** 172.8868*** 43.2435*** x2 1870.000*** 173.0535*** 172.8868*** 43.2435*** x3 1870.000*** 173.0535*** 172.8868*** 43.2435*** x4 1870.000*** 173.0535*** 172.8868*** 43.2435*** note: *** indicates significance at the 1% level of testing. agbioforum, 27(1), 2025 | 106 jaber — analysing the impact of covid-19 on iraq’s stock exchange: performance of agri-business and other sectors using tobin’s q table 8: second-generation unit root test (cips) for search variables time series. variables cips remark y level -2.4642** i(0) 1st diff. -- x1 level -1.9866 i(1) 1st diff. -16.8660** x2 level -1.4040 i(1) 1st diff. -5.5136** x3 level -0.7083 i(1) 1st diff. -13.6326** x4 level -0.1399 i(1) 1st diff. -4.7938** note: ** indicates significance at the 1% level of testing. cointegration test the outcomes of the joint co-integration test demonstrate the presence of a long-run equilibrium relationship among the corporate performance index, new infections, cumulative infections, new deaths, and cumulative deaths. the test statistics within both the within-dimension and between-dimension are statistically significant, suggesting that these five variables exhibit co-movement over time. this implies that a change in one of these variables is, on average, accompanied by corresponding changes in the others, indicating long-term interdependence. the pedroni test evaluates co-integration through two dimensions: within-group (panel v, rho, pp, and adf statistics) and between-group (group rho, pp, and adf statistics), derived from residual-based unit root tests across crosssectional units. as shown in table 9, five of the seven statistics are significant at the 5% level, providing strong evidence of co-integration. thus, the null hypothesis is rejected in both dimensions, confirming a long-term relationship among the model's variables. table 9: pedroni cointegration test. pedroni residual cointegration test null hypothesis: no cointegration alternative hypothesis: common ar coefficients (within-dimension) statistic prob. panel v-statistic -1.788657 0.963 panel rho-statistic -2.089442* 0.018 panel pp-statistic -4.605498** 0.000 panel adf-statistic -2.786155** 0.003 alternative hypothesis: individual ar coefficients (between-dimension) statistic prob. group rho-statistic -0.230032 0.409 group pp-statistic -3.728819** 0.000 group adf-statistic -2.584157** 0.005 note: ** and * indicates significance at the 1 and 5% level of testing, respectively. model estimation in light of the preceding findings, the long-run association between the tobin’s q and the covid-19 indicators— namely, new infections, cumulative infections, new deaths, and cumulative deaths—will be estimated. several estimation techniques are available, with the choice dependent on the nature of the dataset and the outcomes of the previously conducted diagnostic tests. given these considerations, the pdols method has been selected for this analysis. a key advantage of the pdols approach lies in its applicability to datasets containing both stationary and non-stationary variables, which enables the inclusion of all identified independent variables in the model. this estimation procedure is aligned with the unit root test results presented in table 10. table 10: results of pdo.ls method for estimating the long-term relationship of the corporate performance model. dependent variable: y method: pdols variable coefficient std. error t-statistic prob. δ(x1) -0.0000013 0.0000002 -8.16434** 0.000 δ(x2) 0.0000010 0.00000002 47.42039** 0.000 δ(x3) -0.000059 0.0000170 -3.55521** 0.000 δ(x4) -0.000082 0.0000019 -42.85127** 0.000 r-squared 0.7766 long-run variance 0.0078 adjusted r-squared 0.6889 note: ** and * indicates significance at the 1 and 5% level of testing, respectively. the findings presented in table 10 demonstrate that all four covid-19 indicators exert a statistically significant influence on the tobin’s q corporate performance index for the companies included in the study over the long term. agbioforum, 27(1), 2025 | 107 jaber — analysing the impact of covid-19 on iraq’s stock exchange: performance of agri-business and other sectors using tobin’s q the term "long run" in this context refers to the delayed manifestation of the effects of pandemic-related variables, where monthly fluctuations in these indicators impact corporate performance in subsequent months. the individual impact of each variable is detailed as follows: new infections (x1): the analysis reveals a significant negative long-term effect of new infections on corporate performance, with a p-value of 0.000, which is well below the 0.01 level of significance. specifically, each additional case of new infection during the pandemic is associated with a decline of approximately 0.0000013 units in tobin’s q over time. among the four pandemic indicators, new infections rank third in terms of their negative impact on company performance. cumulative infections (x2): cumulative infection figures also show a statistically significant association with corporate performance, with a p-value of 0.000 (significant at the 0.01 level). interestingly, this relationship is positive, with one additional cumulative case corresponding to an increase of 0.000001 in tobin’s q. this counterintuitive result may be explained by the observed inverse correlation (-0.10) between new and cumulative infections. as new infections rise, cumulative cases may increase at a slower rate or even decrease, potentially due to a higher number of recoveries resulting from improved medical treatment and growing expertise. this recovery trend could signal the beginning of the pandemic's decline, possibly contributing to market optimism. this indicator ranks fourth in terms of its influence on corporate performance. new deaths (x3): the results indicate a significant negative relationship between new deaths and company performance, with a p-value of 0.000 (below the 0.01 threshold). each additional new death contributes to a decline of 0.000059 in the performance index over the long term. in terms of relative influence, new deaths rank second among the pandemic indicators affecting corporate performance. cumulative deaths (x4): cumulative mortality exhibits the most substantial negative influence on corporate performance among all pandemic indicators. the p-value for this variable is 0.000, confirming significance at the 0.01 level. an increase of one cumulative death results in a 0.000082-point decline in tobin’s q in the long term. this variable ranks first in terms of its impact on the corporate performance index. the four pandemic-related variables collectively explain approximately 69% of the variation in corporate performance, as reflected by the r² value. the model’s overall significance is strongly supported by the wald test results in table 11, with both f-statistic and chi-square pvalues at 0.000, well below the 1% threshold. these findings confirm that the covid-19 indicators have a statistically significant and substantial impact on tobin’s q, the chosen measure of corporate performance in this study. table 11: wald test for corporate performance model significance. wald test test statistic value df prob. f-statistic 585.8095** (4, 247) 0.000 chi-square 2343.238** 4 0.000 null hypothesis: 𝛽1 = 𝛽2 = 𝛽3 = 𝛽4 = 0 null hypothesis summary �̂�1 -0.0000013 0.0000002 �̂�2 0.0000010 0.00000002 �̂�3 -0.000059 0.0000170 �̂�4 -0.000082 0.0000019 note: **indicates significance at the 1% level of testing. discussion this study presents sound empirical evidence on the disparate impacts of the covid-19 outbreak on corporate performance across sectors in iraq, with particular reference to agri-business firms. the findings exhibit significant variation in financial resilience, as measured by tobin’s q, highlighting the importance of sector-specific characteristics and organisational responsiveness to external disturbances. agri-business firms showed distinct behavioural patterns, highlighting the crucial importance of food value chains and market integration during the calamities, supportive of previous studies on food systems' vulnerabilities (abid et al., 2022; asa’d et al., 2023) and responsiveness to external disasters. by applying highquality panel data methods, such as pdols estimation and cointegration testing, the paper presents a comprehensive evaluation of the long-run relationships between indicators of the pandemic and firm valuation. both new and cumulative infections and deaths emerge with significant but differing impacts on corporate performance, while cumulative deaths registered the largest negative impact. the result agrees with international evidence on the worsening of public health crises being erosive to investor confidence and firm valuation (ding et al., 2021; haroon et al., 2021). on the other hand, the positive coefficient established with cumulative infections could indicate firms' ability to rebuild and gradually return to operation with the gradually restored infrastructure for healthcare and restored supply chains with the progression of time. moreover, the agglomeration of firm-level findings reflects the differential impacts of the pandemic, highlighting the requirement for context-sensitive assessments, specifically for the sectors of food security and national socio-economic resilience, such as agriculture (adikari & buddhika, 2023; pagano & zechner, 2022). the findings further underscore the requirement for resilient agri-business infrastructure along with the integration of innovation and strategic policy measures for long-term sectoral sustainability. overall, this paper presents timely insights for policymakers and sector agbioforum, 27(1), 2025 | 108 jaber — analysing the impact of covid-19 on iraq’s stock exchange: performance of agri-business and other sectors using tobin’s q practitioners seeking to inform sustainable recovery processes as well as enhance economic preparedness across iraq's dynamic business environment. conclusion and policy implications this paper presents an intra-industry analysis of the impact of the covid-19 outbreak on the performance of companies listed on the iraq stock exchange, with sectoral gaps captured by tobin's q. the findings point to marked variability in firm-level outcomes throughout the pandemic, as companies were categorised into seven statistically distinct performance clusters. some firms, such as the smof, sustained strong market valuations, whereas others, notably the aisp, faced notable undervaluation. despite observable volatility in pandemic-related metrics— including the number of new infections and deaths—simple bivariate correlations failed to reveal statistically significant associations with firm performance, suggesting the involvement of additional mediating or moderating variables. nonetheless, advanced estimation techniques, including cointegration and panel data models, indicated that the pandemic-related indicators collectively accounted for 69% of the variation in tobin’s q. among these, cumulative deaths exerted the most substantial long-term negative effect on firm value, followed by new deaths and new infections. interestingly, cumulative infections were found to have a slightly positive association, potentially reflecting firms' adaptive capacity and progressive economic adjustment as the pandemic unfolded. from a strategic and policy-oriented perspective, these outcomes underscore the relevance of leveraging marketbased metrics such as tobin’s q to gauge sectoral resilience and firm adaptability during systemic disturbances. the presence of cross-sectional dependence in the data signals that pandemic effects likely propagated through inter-firm and inter-industry linkages. this highlights the pressing need for improved institutional coordination within the iraqi corporate sector, enabling knowledge exchange and the implementation of effective crisis mitigation strategies. there is also a strong case for designing targeted training programmes and capacity-building initiatives to equip corporate leadership with robust risk management skills and contingency planning capabilities. furthermore, although pandemic-related variables exhibited notable long-term effects, unexplained variations in firm performance imply the existence of additional determinants—such as disruptions in supply chains, policy responses, or managerial practices—that merit further exploration. future 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green technology innovation in yunnan's plateau agriculture: solutions for heavy metal pollution control and rural... green technology innovation in yunnan's plateau agriculture: solutions for heavy metal pollution control and rural revitalization tian chen* yunnan society of environmental sciences, kunming, china, 650032. orcid id: https://orcid.org/009-0003-8392-2990 email: chentianynu@163.com boyu chai yuxi yulin judicial identification center, yuxi, china, 653100. orcid id: https://orcid.org/0009-0006-2680-499x email: ylsfjdzx@163.com jun zhou xinping branch, yuxi tobacco company, xinping, china, 653400. orcid id: https://orcid.org/0009-0008-6442-9806 email: zhoujunkmust@163.com agricultural practices on the yunnan plateau are increasingly threatened by heavy metal contamination arising from mining activities and intensive farming, posing substantial risks to food safety and the sustainability of local agriculture. while green technologies offer environmentally sustainable solutions, their uptake has been limited due to fragmented regulatory frameworks, inadequate institutional support, and low levels of engagement among farmers. this research sought to examine the role of green technologies in alleviating heavy metal pollution, evaluate their impact on rural revitalization, and identify gaps in policy and innovation that hinder sustainable agricultural development within yunnan’s plateau regions. a qualitative systematic literature review (slr) was conducted, employing explicit inclusion and exclusion criteria to select peer-reviewed studies published between 2020 and 2025. the prisma protocol guided the screening and selection process, and thematic analysis was applied to categorise the results into three primary domains: pollution mitigation, rural revitalization, and policy and innovation gaps. the analysis indicates that approaches such as phytoremediation, biochar application, and microbial remediation are effective in substantially reducing heavy metal contamination. additionally, initiatives involving digital technologies, green financing mechanisms, and cooperative models have demonstrated potential in supporting rural revitalization. despite these advances, challenges including weak governance structures, regional inequalities, and barriers to technology adoption continue to limit the widespread integration of green technologies in yunnan. green technologies provide concurrent benefits for ecological restoration and the socioeconomic revitalization of rural communities in yunnan. nonetheless, achieving effective and equitable agricultural transformation requires comprehensive policy reforms and the development of innovation strategies tailored to local contexts. keywords: green technology, yunnan's plateau, agriculture, heavy metals, pollution control. introduction yunnan province, a pivotal agricultural region in southwest china, is characterised by its ecologically diverse plateau landscapes and abundant mineral resources. however, these geological advantages have simultaneously increased the region’s vulnerability to heavy metal contamination, particularly in agricultural soils. extensive mining activities, industrial expansion, and intensive farming have resulted in elevated concentrations of cadmium (cd), lead (pb), and arsenic (as) across numerous locations in yunnan (dong et al., 2022). this contamination presents a dual challenge: it threatens human health through bioaccumulation in the food chain and compromises both agricultural productivity and environmental sustainability. empirical studies have documented heavy metal accumulation in crops, with certain areas of yunnan exceeding national food safety standards (lai et al., 2022). for instance, research conducted in lead-zinc mining regions reported exceedingly high levels of pb and cd in soils and vegetables, posing serious health risks, particularly for children. furthermore, different leafy vegetables, such as malabar spinach, exhibit varying capacities to accumulate heavy metals, which has implications for food security and dietary exposure (cui et al., 2023). the vertical migration of these compounds intensifies the problem; studies in tin ore mining sites indicate that pollutants penetrate deeper soil layers, limiting the efficacy of superficial remediation efforts (liu et al., 2024). additionally, floodplain soils impacted by mining demonstrate high metal enrichment in finer particulate fractions, adding complexity to potential remediation strategies (zhang, zhang, & huang, 2021). green technologies offer promising solutions to this environmental challenge. sustainable approaches such as phytoremediation, biochar application, and microbial bioremediation provide alternatives to conventional chemical treatments. however, these technologies remain underutilised in yunnan’s plateau regions due to incomplete policy frameworks, limited local innovation, and insufficient farmer training (xu et al., 2023). with rural revitalization now a national priority in china, implementing green technologies in contaminated agricultural systems could simultaneously mitigate environmental hazards and enhance rural economic activity. realising these benefits, however, requires locally adapted policy measures, innovation strategies, and an understanding of the socio-economic consequences of technology adoption. despite the recognised potential of green technologies for addressing heavy metal pollution and promoting ecological development in agricultural lands, their application in yunnan’s plateau agriculture remains limited. constraints https://orcid.org/009-0003-8392-2990 mailto:chentianynu@163.com https://orcid.org/0009-0006-2680-499x mailto:ylsfjdzx@163.com https://orcid.org/0009-0008-6442-9806 mailto:zhoujunkmust@163.com agbioforum, 27(1), 2025 | 137 chen et al — green technology innovation in yunnan's plateau agriculture: solutions for heavy metal pollution control and rural... include insufficient policy support, weak coordination among stakeholders, and the high initial costs associated with implementation, all of which hinder widespread adoption in rural areas (wang et al., 2020). additional barriers include inadequate digital infrastructure, limited technical resources, and the need for further investment to operationalise innovations (qi & you, 2024). these systemic challenges raise critical questions regarding the effective implementation, financing, and governance of green technologies to simultaneously address environmental degradation and socio-economic development in yunnan’s rural uplands. research objectives • to explore the role of green technologies in mitigating heavy metal pollution in yunnan's plateau agriculture. • to assess the contribution of green technology to rural revitalization in yunnan’s plateau agriculture. • to identify policy and innovation gaps for implementing green technology solutions in yunnan’s plateau agriculture. recent regional research underscores the significance of green agricultural development for the successful implementation of china’s rural revitalization strategy. an assessment of agricultural green development in northeast china by hou & wang (2022) revealed that competitive factors face substantial spatial disparities and structural limitations that impede sustainable progress, including inefficient land utilisation, underexploited technologies, and inadequate environmental governance. in a similar study focusing on gansu province, lyu, rong, & yao (2025) observed that, despite some advances in ecological conservation policies, persistent weaknesses—such as limited agricultural engagement and insufficient investment in green innovations—continue to obstruct rural transformation. these findings emphasise the necessity of adopting region-specific strategies for green technology, which can simultaneously mitigate ecological degradation and enhance rural resilience. within this context, examining plateau agriculture in yunnan offers valuable insights into locally tailored and scalable approaches for integrated ecological and economic revitalization initiatives. literature review green technologies in mitigating heavy metal pollution in yunnan's plateau agriculture dong et al. (2022) performed a systematic assessment of the soil–crop system across 11 cities in yunnan, revealing that agricultural soils have historically been contaminated with elevated levels of cadmium (cd) and lead (pb). the study underscores the urgent necessity of integrating pollution control measures into regional land management strategies. while recognising the multidimensional spatial heterogeneity of contamination, the authors advocate for the application of locally adapted green technologies rather than uniform interventions. adjustments in plantation patterns represent a promising nature-based strategy. cheng et al. (2024) examined different cultivation patterns of dendrocalamus brandisii, a tropical bamboo species, in yunnan and identified notable variation in heavy metal bioaccumulation across plantation types. mixed forest systems demonstrated lower risk levels, indicating that afforestation design may serve as an effective green technology for capturing and mitigating heavy metals in polluted areas. qin et al. (2022) investigated heavy metal contamination in agricultural soils developed on karst landscapes in southwest china, including yunnan. their findings indicate that the accumulation of metals such as zinc (zn) and chromium (cr) is influenced by landform characteristics interacting with anthropogenic activities. they emphasise that geomorphologically targeted interventions, including selective cultivation and soil amendments, can substantially reduce pollution levels. jia et al. (2024) extended this line of research through spatial analysis to trace pollutant sources in areas affected by non-ferrous metal slag. their study highlights source-specific remediation strategies and the integration of green technologies, such as phytostabilisation and microbial remediation, within policy frameworks to mitigate long-term environmental risks. other contamination pathways, particularly those independent of soil, also rely on green technologies to monitor heavy metals within the soil–feed–milk chain. alarmingly high levels of metals have been detected in food products, with potential carcinogenic consequences for humans. these findings reinforce the importance of implementing comprehensive remediation measures that address all agricultural subsystems, including safe feed production practices and effective soil decontamination techniques. finally, wu et al. (2022) conducted a scoping review of national studies on phytoremediation, microbial remediation, and biochar application as cost-effective, environmentally sustainable alternatives. they emphasise that successful deployment of these technologies requires alignment with local soil chemistry, cropping systems, and pollution sources, a strategy particularly beneficial for the fragmented agroecological units of yunnan. green technology to rural revitalization in yunnan’s plateau agriculture deng, zhang, & wan (2022) present micro-level evidence from yunnan indicating that securing rural land rights can substantially enhance farmers’ incomes through land transfer activities and the facilitation of scaled agricultural operations. while not a technology in itself, land tenure reform is critical for enabling the deployment of green technologies, as it permits investment in sustainable practices and necessary infrastructure. their study emphasises that institutional reforms constitute a fundamental prerequisite for achieving both green development and income growth within the rural economy. xie (2022) argues that policy frameworks must be compatible with rural revitalization goals and that innovation should emerge from grassroots levels to support green transformation in agriculture. the research identifies structural impediments—such as fragmented land use, low penetration of technological instruments, and inefficiencies within local governments—that restrict the regional feasibility of green technologies. nevertheless, it highlights agbioforum, 27(1), 2025 | 138 chen et al — green technology innovation in yunnan's plateau agriculture: solutions for heavy metal pollution control and rural... potential for scaling interventions like organic farming and clean irrigation when coupled with educational initiatives and financial incentives. sun et al. (2023) examine rural revitalization through the lens of green finance, demonstrating that environmentally oriented financial mechanisms can support green industries. using panel data from across china, the study reveals that green finance produces significant spatial spillover effects, enhancing both innovation and agricultural output in rural localities. these findings are particularly relevant for yunnan, where regional development remains uneven, suggesting that green financial instruments could serve to narrow interregional disparities. zhao (2023) evaluates the role of the digital economy in catalysing rural revitalization via green technology adoption in yunnan. the study finds that leveraging digital resources—including e-commerce platforms, innovative agricultural systems, and data-driven infrastructure planning—has substantially increased total factor productivity in rural industries between 2012 and 2021. this illustrates how technology-enabled green innovation can overcome the geographic and economic barriers inherent to plateau agriculture. shen (2024) provides an example of a successful ecologicaleconomic revival model, resulting in integrated village– community green development in jiangsu province. although implemented outside yunnan, its principles offer transferable lessons for plateau communities facing comparable socioeconomic fragmentation. finally, juanjuan & wei (2024) advocate for system-level ecological revitalization through a comprehensive framework integrating natural resource management, support for green industries, and social infrastructure development. their systems-oriented approach offers a strategic model for progressively enhancing yunnan’s rural capacity through the adoption of integrated green technologies. policy and innovation gaps for implementing green technology solutions in yunnan’s plateau agriculture li & shangguan (2024) assessed the national agricultural green development pilot zones policy, finding that while it enhanced eco-efficiency in regions of implementation, its effects were geographically uneven. the study indicated that areas where rural innovation was pivotal for policy success experienced delays, resulting in weaker institutional capacity and slower technological diffusion in less developed western provinces such as yunnan. this highlights a key policy limitation in tailoring institutional structures to local socio-economic contexts. case-specific research in yunnan further illustrates these constraints. yong et al. (2023) examined the erhai lake basin, where strict ecological protection measures were enforced to minimise agricultural contamination. however, these measures inadvertently reduced farmers’ income sources, revealing a persistent gap between ecological policy objectives and socio-economic realities. addressing this discrepancy requires innovative approaches that are both socially acceptable to farming communities and capable of sustaining livelihoods alongside ecosystem health. economic disparities present additional barriers to the dissemination of innovation. jiang et al. (2023) observed that widening urban–rural income gaps negatively impact agricultural green productivity, as resource-poor rural households are unable to adopt costly green technologies. this institutional imbalance reflects shortcomings in governance and policy planning, which fail to provide equitable access to innovation, particularly in lagging regions such as yunnan. at the individual level, xu et al. (2024) found that although a majority of farmers in yunnan’s multi-ethnic communities expressed willingness to engage in green agricultural practices, actual adoption was limited. the discrepancy between intention and practice was attributed to insufficient incentives, low awareness, and inadequate extension services, emphasising the need for targeted policy support, subsidies, and culturally sensitive training programmes. liu, lu, & chen (2023) analysed temporal and spatial variations in agricultural green development efficiency across china, concluding that western provinces consistently lag behind due to underdeveloped technological innovation systems. they emphasise that bridging these regional gaps requires locally tailored innovation systems and enhanced cross-provincial collaboration. finally, gan, yan, & wen (2023) investigated barriers to the development of green rural housing, identifying a self-reinforcing cycle of financial, infrastructural, and policy constraints. their application of fuzzy cognitive mapping elucidated the interrelated structural barriers that impede effective policy formulation, providing a robust methodological framework for diagnosing systemic gaps in the green agricultural transformation of yunnan. literature gap although prior research underscores the promise of green technologies for mitigating heavy metal contamination, supporting rural revitalization, and informing policy reforms, several critical gaps persist. firstly, studies in yunnan have largely concentrated on quantifying contamination levels and assessing ecological risks (cheng et al., 2024; dong et al., 2022), with limited empirical investigation into the long-term efficacy of green remediation technologies within plateauspecific agroecosystems. secondly, while instruments such as digital tools, green finance, and land tenure reforms have been identified as facilitators of rural revitalization (deng et al., 2022; sun et al., 2023; zhao, 2023), their integration into pollution management frameworks in yunnan remains insufficiently explored. thirdly, policy assessments predominantly focus on pilot initiatives in eastern provinces (li & shangguan, 2024; shen, 2024), often neglecting the unique institutional, cultural, and socio-economic characteristics of western highland regions. finally, the discrepancy between farmers’ willingness and actual adoption (xu et al., 2024) emphasises the necessity for research that connects behavioural dynamics with policy innovation, enabling the design of inclusive and context-specific pathways for green technology deployment in yunnan. methodology research methods and design the study adopted a qualitative research design, employing a systematic literature review (slr) methodology to agbioforum, 27(1), 2025 | 139 chen et al — green technology innovation in yunnan's plateau agriculture: solutions for heavy metal pollution control and rural... achieve its objectives. this approach facilitated the comprehensive collection, analysis, and synthesis of peerreviewed literature pertaining to green technologies, heavy metal contamination, rural revitalization, and policy gaps within yunnan’s plateau agriculture. the review process involved the establishment of explicit inclusion and exclusion criteria, alongside a rigorous assessment of the methodological quality and reliability of the selected studies. this procedure ensured that only the most pertinent and robust research was incorporated into the analysis. data collection methods searching techniques the relevant literature was systematically identified through a targeted search using keywords aligned with the study’s objectives, including terms such as green technology, heavy metal contamination, rural revitalization, yunnan plateau agriculture, and policy and innovation gaps. databases the literature search focused on databases including jstor, web of science (wos), google scholar, and researchgate, selected for their extensive collections of peer-reviewed publications pertinent to agricultural biotechnology, sustainability, and rural development. boolean operators boolean operators, including and, or, and not, were employed to refine the search strategy. for instance, queries such as “green technology and heavy metal pollution and yunnan” and “rural revitalization or agricultural innovation not malaysia/korea/russia” were utilised to maintain a precise focus on the study context. inclusion and exclusion criteria a structured framework was established to systematically screen and filter the selected studies, as presented in table 1. table 1: inclusion and exclusion criteria. criteria inclusion exclusion publications peer-reviewed journal articles published from 2020 to 2025 non-peer-reviewed works or publications prior to 2020 research type empirical or theoretical investigations opinion pieces, commentaries, or non-scientific studies language english-language publications non-english-language publications focus research examining green technology applications in agriculture within yunnan or broader china studies not addressing agricultural contexts or unrelated to green technology selection of papers through the prisma framework an initial pool of 100 articles was identified and subsequently screened according to the predefined inclusion and exclusion criteria. abstracts and full texts were carefully reviewed multiple times to confirm their relevance to the research objectives. following this rigorous evaluation, 12 studies were retained for the final analysis. this purposive selection process ensured that only research providing substantive insights into pollution mitigation, rural revitalization, and policy and innovation gaps was incorporated figure 1. figure 1: prisma framework. data analysis methods the findings were interpreted using a thematic analysis approach, with the overall process summarised in table 2. table 2: data analysis methods. step description familiarization engaging in multiple readings of the selected studies to discern central concepts coding allocating codes to salient themes, such as pollution, rural revitalization, and policy gaps theme development organising codes into broader thematic clusters interpretation integrating and synthesising thematic findings to address the study’s research objectives ethical considerations ethical considerations were rigorously upheld throughout the study. only publicly accessible, peer-reviewed sources were utilised, ensuring both transparency and adherence to agbioforum, 27(1), 2025 | 140 chen et al — green technology innovation in yunnan's plateau agriculture: solutions for heavy metal pollution control and rural... academic integrity. appropriate referencing and citation practices were employed to recognise all intellectual contributions. as the study did not involve human or animal participants, formal ethical approval was not required. results the study’s results are presented through a thematic analysis of the selected literature, structured in alignment with the three research objectives. the findings illustrate the role of green technologies in mitigating heavy metal contamination in yunnan’s plateau agriculture, their impact on rural revitalization, and the policy and innovation gaps that limit their adoption. collectively, these themes offer a comprehensive perspective on the opportunities and challenges associated with promoting sustainable agricultural transformation table 3. table 3: theme extracted. theme sub-themes focus of analysis green technologies for pollution mitigation phytoremediation (plants) biochar and soil amendments microbial remediation plantation and land-use modification evaluation of the capacity of green technologies to diminish cadmium (cd), lead (pb), arsenic (as), and other heavy metal concentrations in soils and agricultural produce. green technology and rural revitalization income growth and farmer livelihoods digital and precision agriculture green finance mechanisms ecological agriculture models examination of the ways in which green technologies enhance rural socio-economic conditions and support the achievement of revitalization objectives. policy and innovation gaps weak institutional capacity farmer adoption barriers regional disparities governance and regulatory limitations identification and analysis of systemic constraints that hinder the effective adoption and implementation of green technologies in yunnan. theme 1: green technologies for pollution mitigation table 4 presents the green technologies employed to mitigate heavy metal contamination in agricultural soils, emphasising phytoremediation, biochar utilisation, and plant–microbe interactions. table 4: green technologies for pollution mitigation authors objectives methods findings conclusion harindintwali et al. (2020) to investigate how interactions among biochar, bacteria, and plants can enhance the remediation of soils contaminated with heavy metals. review of literature on biochar applications, microbial partnerships, and plant-based remediation techniques. biochar functions as a carrier for beneficial microbes, improves soil nutrient retention, and supports plant growth under heavy metal stress. microbialassisted phytoremediation efficiency increased with biochar addition. the integration of biochar, microbial inoculants, and plants offers a promising, environmentally sustainable approach to remediating heavy metal–contaminated agricultural soils. yang et al. (2022) to identify global trends, research hotspots, and future directions in phytoremediation of heavy metal–polluted soils. bibliometric and scientometric analysis of 1,123 phytoremediation studies published between 2000 and 2020. cadmium (cd) was the most frequently studied metal. phytoremediation success was enhanced by microbial and chemical additives. key research hotspots include plant diversity and mechanisms of heavy metal tolerance. future studies should focus on improving phytoremediation efficiency using biochemical aids and on identifying hyperaccumulator plants suitable for soils contaminated with multiple metals. khatoon et al. (2024) to examine microbial contributions to heavy metal phytoremediation in agricultural soils. systematic review of plant–microbe interactions within agroecosystems. plant-associated microbes enhanced sequestration, stabilization, and detoxification of cd, as, and pb. microbial activity promoted plant growth, improved soil fertility and biodiversity, and reduced contaminant levels. plant–microbe partnerships are critical for developing sustainable phytoremediation approaches, highlighting microbial-assisted remediation as a key pathway for future agricultural practices. jiang et al. (2024) to evaluate the impact of biochar and phosphorusbased amendments on amaranth’s capacity to remediate cdcontaminated soils. empirical experiments using soil treatments with biochar, phosphorus, and their combination under controlled conditions. the combined application of biochar and phosphorus markedly decreased soilavailable cd, increased plant biomass, and enriched beneficial microbial communities. soil enzyme activity and nutrient content also improved. the synergistic use of biochar and phosphorus enhances plant-based phytoremediation effectiveness and fosters healthier microbial ecosystems in cd-polluted soils. the reviewed literature collectively indicates that the integration of green technologies, including biochar, microbial consortia, and plant-based interventions, substantially enhances the remediation of soils contaminated with heavy metals. harindintwali et al. (2020) and jiang et al. (2024) emphasise the role of biochar in promoting plant growth and supporting microbial activity, whereas yang et al. (2022) and khatoon, orozcomosqueda, & santoyo (2024) highlight the global applicability of phytoremediation and the contributions of agbioforum, 27(1), 2025 | 141 chen et al — green technology innovation in yunnan's plateau agriculture: solutions for heavy metal pollution control and rural... microbial processes. these findings collectively underscore the necessity of employing synergistic, multitechnology approaches to achieve sustainable soil remediation in agricultural systems table 4. theme 2: green technology and rural revitalization in yunnan table 5 presents the green technologies that support rural revitalization in yunnan, with a particular focus on financial mechanisms, digital innovations, renewable energy, and cooperative ecological models. the reviewed literature illustrates multiple pathways through which green technologies facilitate rural development. li, lisa, & chong (2023) highlighted the significance of green finance in promoting agricultural growth, while jin et al. (2024) demonstrated the capacity of digital tools to enhance rural tourism and livelihoods. harlan (2021) found that subsidised green infrastructure, such as smallscale hydropower, is necessary to ensure equitable benefits. ye & fan (2024) emphasised cooperative green economies as effective models for integrating ecological restoration with income generation, thereby reinforcing the contribution of technology to sustainable rural revitalization table 5. table 5: green technology and rural revitalization in yunnan. authors objectives methods findings conclusion li et al. (2023) to investigate the influence of agricultural loans on rural revitalization in yunnan province. empirical analysis using provincial datasets, with indices constructed for rural revitalization and agriculturerelated lending. agriculture-related loans were found to positively affect rural revitalization, particularly enhancing industrial prosperity and the efficiency of financial resource allocation. green finance, facilitated through agricultural loans, represents a significant driver of rural revitalization; however, improvements in efficiency and targeted lending strategies are necessary. jin et al. (2024) to evaluate the role of digital technologies, including ai and machine learning, in enhancing rural bed-and-breakfast (b&b) management as part of rural revitalization in yunnan. machine learning models (bert, cnn, lstm, gru) were applied to online reviews, complemented by evolutionary game theory for stakeholder strategy analysis. key challenges in service quality and stakeholder coordination were identified. the application of digital technologies improved management efficiency and customer satisfaction. digital innovation strengthens rural tourism, enhances local livelihoods, and contributes substantially to sustainable rural revitalization. harlan (2021) to assess whether small hydropower (shp) projects in yunnan deliver social and environmental benefits to rural communities. household survey of 122 households across 8 villages; comparative analysis between subsidized and unsubsidized shp projects. subsidized shp installations reduced reliance on fuelwood and improved energy access, whereas unsubsidized plants offered limited pro-poor benefits. only inclusive, subsidized green technologies can provide equitable advantages to rural populations, highlighting the importance of supportive policy frameworks. ye & fan (2024) to examine the role of green cooperative economies in promoting ecological restoration and rural development in yunnan and neighbouring provinces. case studies of green cooperative industries, including fruit farming and photovoltaic initiatives, within rocky desertification regions. green cooperatives enhanced farmer incomes, strengthened ecological protection, and reinforced community resilience. cooperative green economic models can concurrently achieve environmental restoration and rural revitalization, offering replicable strategies for yunnan. theme 3: policy and innovation gaps table 6 outlines the policy and innovation gaps that impede the adoption of green technologies in yunnan, focusing on institutional capacity, regional disparities, barriers to farmer uptake, and governance constraints. the reviewed literature indicates that persistent gaps in policy and innovation continue to limit the effective implementation of green technologies. wang & zhan (2024) demonstrate that while digital rural initiatives improve accessibility, their impact is constrained by weak institutional support. similarly, wang et al. (2024) highlight inconsistencies in adoption rates across different regions. wang (2024) underscores the inadequate alignment of innovative practices with local agricultural requirements, and feng et al. (2023) reveal governance shortcomings in the implementation of water-saving reforms. collectively, these studies emphasise the necessity for context-specific, institutionally supported innovation policies to facilitate the widespread uptake of green technologies. agbioforum, 27(1), 2025 | 142 chen et al — green technology innovation in yunnan's plateau agriculture: solutions for heavy metal pollution control and rural... table 6: policy and innovation gaps. authors objectives methods findings conclusion wang & zhan (2024) to investigate how digital rural development initiatives address the urban–rural information gap in yunnan. case study approach using data from rural development programmes in yunnan. digital rural programmes improved access to information and essential services; however, progress was constrained by weak institutional capacity and limited infrastructure. bridging the digital divide in rural yunnan requires strengthened governance support and the implementation of targeted innovation policies. wang et al. (2024) to assess the role of rural digitization in promoting coordinated urban–rural development. quasi-natural experiment using panel datasets and econometric modelling. rural digitization reduced regional disparities and fostered integration, though adoption remained uneven, particularly in western provinces such as yunnan. digitization strategies are effective but must be tailored to regional contexts to mitigate uneven adoption and structural inequalities. wang (2024) to evaluate how scientific and technological innovation contributes to sustainable development in yunnan’s agricultural sector. theoretical and policy analysis using economic and innovation-related indicators. weak innovation systems and poor alignment of policies with local needs impeded agricultural modernisation and sustainability in yunnan. enhancing local innovation capacity and aligning governance frameworks are critical for promoting sustainable agricultural development. feng et al. (2023) to examine the effects of property rights reform on the maintenance of agricultural water facilities and farmer behaviour in yunnan. empirical study using household survey data from 328 households and econometric models (oprobit, iv-oprobit). reforms improved irrigation facility maintenance and adoption of water-saving technologies, but institutional and governance limitations restricted overall effectiveness. property rights reform can facilitate the uptake of green technologies, contingent upon supportive policies and effective institutional coordination. discussion interpretation of the findings this study is structured around three principal themes, through which the findings highlight both the opportunities and systemic challenges associated with promoting green technology in yunnan’s plateau agriculture. regarding the first objective, the evidence demonstrates that phytoremediation, biochar, and microbial remediation effectively reduce cadmium (cd), lead (pb), and arsenic (as) concentrations in agricultural soils. research by harindintwali et al. (2020) and jiang et al. (2024) indicates that the application of biochar and soil amendments not only enhances plant growth but also stabilises soil contaminants. likewise, yang et al. (2022) and khatoon et al. (2024) emphasise that phytoremediation and microbial interventions possess global applicability while remaining adaptable to the fragmented agroecological zones of yunnan. for the second objective, findings suggest that green technologies contribute substantially to rural revitalization by increasing income, promoting digitalisation, facilitating access to financial tools, and supporting ecological cooperatives. green finance plays a critical role in enhancing agricultural development, while jin et al. (2024) highlight the beneficial impact of digital innovations on rural tourism and livelihoods. harlan (2021) underscores the necessity of policy backing for renewable energy projects, whereas ye & fan (2024) demonstrate that cooperative ecological models function as multi-dimensional instruments capable of transforming both rural lifestyles and local environmental management practices. concerning the third objective, the analysis reveals significant institutional and policy deficiencies that impede sustainable adoption of green technologies in yunnan’s plateau agriculture. key barriers include limited governance capacity (wang & zhan, 2024), uneven regional adoption (wang et al., 2024), inadequate alignment of innovations with local agricultural needs (wang, 2024), and governance challenges associated with water-saving initiatives (feng et al., 2023). these findings collectively underscore the pressing need for context-specific, institutionally supported interventions to facilitate the effective implementation of green technologies in the region. comparison with the previous studies the findings of this study both corroborate and extend previous research while revealing distinctive patterns specific to yunnan’s plateau agriculture. concerning heavy metal pollution control, prior studies, including dong et al. (2022) and qin et al. (2022), documented the severity of cadmium (cd), lead (pb), and zinc (zn) contamination in yunnan soils, emphasising spatial heterogeneity across karst landscapes. the present analysis reinforces these concerns by demonstrating that biochar, microbial inoculants, and phytoremediation approaches can effectively reduce the bioavailability of metals. this aligns with wu et al. (2022), who identified nature-based solutions as cost-effective alternatives to chemical remediation. however, unlike earlier research that predominantly considered remediation as a technical measure, the current study underscores the importance of integrated strategies combining biochar, plant systems, and microbial interventions. in contrast to studies analysing single-crop bioaccumulation, such as cui et al. (2023), which highlighted isolated risks, the present research demonstrates the advantages of holistic, systembased approaches. with respect to rural sustainability, prior research has highlighted the critical role of asset availability and financial resources in enabling sustainable livelihoods agbioforum, 27(1), 2025 | 143 chen et al — green technology innovation in yunnan's plateau agriculture: solutions for heavy metal pollution control and rural... (deng et al., 2022; sun et al., 2023). this study builds on that perspective by demonstrating that digital technologies and cooperative green economies are equally pivotal enablers of rural development. zhao (2023) illustrated that digital economies can generate transformative effects in plateau industries, and the current findings extend this by showing how artificial intelligence and information-driven platforms can shape tourism and service policy organisation. unlike zhao’s broader economic focus, this study situates digital adoption within a green technology framework, highlighting its dual role as an economic driver and a mechanism for ecological restoration. similarly, while shen (2024) and juanjuan & wei (2024) emphasised system-level rural development frameworks, the present findings indicate that cooperative ecological models are particularly well-suited for fragmented plateau regions, demonstrating the scalability of community-based ecological interventions. regarding policy and innovation gaps, the results are consistent with prior research identifying regional and origin-related disparities as obstacles to green technology adoption. for example, yang et al. (2025) and li & shangguan (2024) observed that pilot programmes in western provinces frequently underperformed due to weaker governance systems. the current study builds upon these findings by emphasising the additional influence of barriers to farmer adoption and significant urban–rural income disparities. yang et al. (2022) demonstrated that poverty alleviation initiatives only modestly reduced income inequalities in yunnan without generating innovationdriven growth, supporting the current evidence that, in the absence of effective extension services and institutional incentives, farmers remain reluctant to adopt green agricultural practices. likewise, liu et al. (2023) mapped regional inefficiencies in agricultural green development, corroborating prior observations regarding the underdeveloped innovation ecosystem in western provinces. a further conceptual advancement of this study is the framing of digital and cooperative models as both technological and institutional solutions. whereas wang et al. (2020) emphasised the role of stakeholder networks in overcoming diffusion barriers, the present research highlights rural digitalisation (wang et al., 2024) and land tenure reforms (feng et al., 2023) as mechanisms that simultaneously reduce governance inefficiencies and facilitate technology adoption. this conceptualisation suggests that institutional and technological reforms are not parallel processes but mutually reinforcing elements that should be integrated into coherent policy designs. finally, whereas earlier studies such as lai et al. (2022) and liu et al. (2024) primarily focused on contamination risks and health implications, treating technological adoption as a secondary concern, the current study positions green technology adoption at the centre of analysis. here, pollution mitigation, livelihood enhancement, and governance restructuring converge within a unified framework. this represents a conceptual shift from merely describing environmental hazards to prescribing actionable, sustainable interventions, synthesising bio-technical, socioeconomic, and institutional insights that were previously examined largely in isolation. theoretical implications this study makes several theoretical contributions to the literature on sustainable agriculture and rural transformation. firstly, it expands the scope of environmental governance theory by emphasising that both environmental conditions—including institutional structures and socio-economic contexts—and the effectiveness of ecological technologies influence the integration of new innovations, consistent with observed governance constraints in western provinces (li & shangguan, 2024). secondly, the findings relate to rural development theory by linking ecological restoration processes with the outcomes of rural revitalization, offering insights that can be drawn from cooperative economic models (ye & fan, 2024). thirdly, the study refines innovation diffusion theory by highlighting barriers specific to plateau agriculture, including weak institutional support and limitations in adoption. finally, the research underscores the relevance of systems thinking, recognising governance and ecological systems as interdependent components and demonstrating that both environmental and rural transformations require cross-system, integrative approaches (harlan, 2021). conclusion this study demonstrates that phytoremediation, biochar application, and microbial remediation represent viable approaches for alleviating heavy metal contamination in yunnan’s plateau agriculture, while simultaneously supporting rural revitalization. evidence indicates that, when complemented by robust financial mechanisms, digital innovations, and cooperative frameworks, these technologies can enhance environmental quality, safeguard food security, and improve farmer livelihoods. nonetheless, systemic challenges—such as limited institutional capacity, uneven regional availability, and barriers to farmer adoption— constrain the broad implementation of these solutions. addressing these gaps requires context-specific interventions that integrate ecological, economic, and governance dimensions, thereby facilitating sustainable and transformative agricultural development in yunnan’s highland regions. limitations the reliance on a systematic literature review constitutes a limitation of this study, as it restricted access to primary field data and depended predominantly on secondary sources. additionally, the exclusive use of englishlanguage, peer-reviewed journals may not have captured all locally produced research published in chinese. while the thematic analysis provided a structured synthesis, it may also have oversimplified the complex socio-political dynamics that shape the adoption of technology in yunnan’s plateau agriculture. future work the effectiveness of green technologies under plateauspecific conditions, as observed in yunnan, warrants validation through future field-based studies employing mixed-method approaches. greater attention should be agbioforum, 27(1), 2025 | 144 chen et al — green technology innovation in yunnan's plateau agriculture: solutions for heavy metal pollution control and rural... directed towards farmers’ perceptions, behavioural adoption processes, and localised policy responses. comparative analyses with other plateau regions in china or internationally would further enhance understanding and support the development of transferable, contextsensitive models for green agricultural advancement. references cheng, q., dou, p., bao, c., zhang, z., cao, y., & yang, h. 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department, faculty of administration and economics, university of kerbala, kerbala, iraq. orcid id: https://orcid.org/0000-0002-1756-2750 email: khudher.abbas@uokerbala.edu.iq ali ayed nasir economics department, faculty of administration and economics, university of kerbala, kerbala, iraq. orcid id: https://orcid.org/0009-0002-9786-6099 email: ali.ayed@uokerbela.edu.iq ahmed abdullah amanah* business administration department, faculty of administration and economics, university of kerbala, kerbala, iraq. orcid id: https://orcid.org/0000-0001-5092-391x email: ahmed.a@uokerbala.edu.iq this study investigates the dynamic influence of monetary policy on the gross domestic product (gdp) of the united states over the period spanning 1990 to 2023. by employing dynamic macroeconomic models, the research elucidates the enduring effects of monetary policy across the economy, as central banks leverage these models to stimulate aggregate demand. the analysis employs the autoregressive distributed lag (ardl) framework to assess the dynamic interplay between gdp and specific monetary policy instruments, including required reserves, excess reserves, net domestic credit, and the central bank interest rate. the results show a link of long-term equilibrium between gdp growth and monetary policy tools. in the short term, excess reserves exhibit a negative impact on economic output, while net domestic credit demonstrates no significant effect. conversely, over the long term, the central bank interest rate, net domestic credit, and required reserves all exert a substantial and positive influence on output. however, excess reserves are associated with a notable decline in output. keywords: monetary policy, static effect, dynamic effect, economic growth. introduction two essential aspects of the economy that are ignored by comparative static analysis are the existence of persistent inflation and steady long-term economic growth, which leads to a continuous rise in the general price level. this analytical approach fails to provide insights into the duration required to achieve a new equilibrium or the behaviour of internal variables during the transition between equilibria. furthermore, comparative static analysis does not offer predictions regarding the establishment of a new equilibrium, nor does it address the stability of such an equilibrium. these limitations highlight the necessity of dynamic analysis, which incorporates the dimension of time to account for the fact that economic adjustments do not occur instantaneously. dynamic analysis evaluates the stability of equilibrium and examines the process of transition between equilibria. consequently, dynamic equilibrium models are better suited to explain how variables evolve over time. the impact of monetary policy on the real economy remains a contentious issue within macroeconomic discourse, as highlighted by recent research (boug et al., 2023). dynamic models, by incorporating temporal dimensions, provide a more comprehensive framework for understanding these complex interactions and their implications for economic stability and growth. governments and central banks utilise monetary policy as a key instrument to foster economic growth and maintain stability (chugunov et al., 2021). central banks are tasked with managing the money supply to sustain economic progress and ensure price stability (perng, 2021). through various monetary policy tools, authorities aim to regulate inflation, stimulate economic growth, or achieve both objectives, thereby influencing critical outcomes such as unemployment rates, exchange rates, and overall economic performance (adegboyo, keji, & fasina, 2021). maintaining low and stable inflation over extended periods is essential for robust economic development and employment generation, making price stability a cornerstone of monetary policy in advanced economies (islam et al., 2022). monetary authorities in industrialised nations bear responsibility for managing price levels, economic growth, employment, and financial stability, employing a range of policy instruments to achieve these objectives (huerta de soto, sánchez-bayón, & bagus, 2021). while the concept of monetary neutrality in the long run has been widely debated in macroeconomic theory, empirical evidence challenges this doctrine, suggesting that monetary policy can have lasting effects on real economic variables (jordà, singh, & taylor, 2020). in developed countries, the adoption of inflation targeting frameworks reflects the prioritisation of price stability as a central goal of monetary policy over the long term (serletis & dery, 2025). central banks design monetary policies to mitigate financial instability and promote economic advancement, focusing on objectives such as economic expansion, job creation, price stability, and sustainable interest rates (islam et al., 2022). for instance, the u.s. federal reserve, in collaboration with the federal open market committee, aims to achieve price stability, curb inflation, expand employment opportunities, and address persistently low interest rates through refined monetary policy strategies (amaral et al., 2022). monetary policy shocks have been shown to significantly influence both nominal and real economic variables (gambetti et al., 2022). empirical studies indicate that output tends to decline following a positive monetary policy shock (giacomini, kitagawa, & read, 2021). additionally, the https://orcid.org/0009-0008-9253-4582 mailto:salam.k@uokerbala.edu.iq https://orcid.org/0000-0002-1756-2750 mailto:khudher.abbas@uokerbala.edu.iq https://orcid.org/0009-0002-9786-6099 mailto:ali.ayed@uokerbela.edu.iq https://orcid.org/0000-0001-5092-391x mailto:ahmed.a@uokerbala.edu.iq agbioforum, 26(3), 2024 | 42 shani et al — measuring and analyzing the dynamic effects of monetary policy on gdp usa case study 1990-2023 rapid adjustment of prices in developing economies reduces the impact of monetary policy shocks on output compared to their effects in advanced economies (ha, kose, & ohnsorge, 2022). literature review comparative statics versus dynamics of adjustment a distinction can be made between temporal and static equilibrium, the latter of which has a dimension of time. with expectations introduced into the analysis, equilibrium must be temporal. in order for such an equilibrium to be meaningful, expectations made in each period must be consistent and reinforcing with one another (garegnani, 2024). dynamic and stochastic equilibrium models are employed to model behaviour of economic variables over a duration of time. these are stochastic in that they take into account unpredictability that is inherent in economic activity. contemporary short-run models of economic fluctuations illustrate global equilibrium by exhibiting interdependence between economic variables and demonstrating how such interdependence contributes to economic fluctuations. the dynamic aggregate supplydemand model, for instance, elucidates how macroeconomic variables such as output, inflation, and interest rates respond to shocks and interact over time. this model underscores the necessity for central banks to strike a balance between inflation variability and output volatility in their monetary policy decisions. it also highlights the importance of decisive policy actions to prevent inflation from escalating uncontrollably (mankiw, 2016). static analysis typically doesn't take into account ongoing inflation, year-to-year price level changes, and long-run growth in the economy (xie et al., 2024). comparative static analysis doesn't tell us when a new equilibrium will be reached and doesn't explain changes in endogenous variables in moving from one equilibrium point to another. comparative static approaches don't tell us whether a new equilibrium will be reached or whether it will be stable. these limitations underscore the importance of dynamic analysis, which incorporates the dimension of time to acknowledge that economic adjustments do not occur instantaneously. dynamic analysis tracks the transition between equilibria and assesses the stability of the resulting equilibrium, offering a more comprehensive understanding of economic processes (gartner, 2009). modern monetary policy between rules and automaticity interest rate and monetary policy to limit the growth of the money supply, the central bank controls interest rates. however, due to the overall volume of liquid assets in the economy, these rates may exhibit volatility (abadi, brunnermeier, & koby, 2023). by adjusting loan interest rates, the central bank aims to maintain low inflation while preventing significant fluctuations in production and employment. however, setting appropriate rates remains a complex challenge. a general principle suggests that interest rates should rise when inflation increases. higher interest rates reduce the money supply, leading to lower investment, decreased output, higher unemployment, and reduced inflation. conversely, interest rates should decline when economic activity weakens, as indicated by changes in real gdp or unemployment levels. within the framework of the dynamic aggregate supply-demand model, lower interest rates expand the money supply, stimulating investment and production while reducing unemployment (miller, 2024). taylor rule given that the credibility of implementing expansionary monetary policy to boost employment in the short term is increasingly questioned, central banks are prioritising their long-term objective of economic stability (dikau & volz, 2021). policy implementation can be broadly classified into two approaches: rule-based and discretionary. rulebased policies involve establishing clear guidelines and commitments, which help set consistent expectations. in contrast, discretionary policies allow policymakers the flexibility to adapt their decisions in response to changing circumstances. though discretionary policies appear more appealing at first due to their flexibility, they are faulted for being incoherent and prone to policy asymmetry. this has been a stronger argument in favor of rule-based systems as it enhances policy decisions' credibility by providing a clear and foreseeable framework (schmidt & scott, 2021). in analyzing monetary policy length and efficacy, macroeconomic models such as the taylor rule are employed by economists as an extension of the aggregate supply and demand model (helgadóttir, 2023). the taylor rule, developed by john taylor, guides central banks in adjusting interest rates based on inflation and unemployment. if inflation exceeds targets or unemployment is too low, rates rise to curb inflation. if inflation is low and unemployment high, rates are cut to boost growth. the rule emphasizes price stability as key to sustainable economic growth, aligning with the aggregate supply-demand model's insights on inflation and output gaps. federal funds rate target = inflation rate + equilibrium real federal funds rate + 1/2 (inflation gap) + 1/2 (output gap ( the inflation gap, output gap, or the percentage deviation of real gdp from its estimated full employment level can be calculated by subtracting the current inflation rate from the target inflation rate (valogo et al., 2023). when real gdp exceeds its natural level, the output gap is positive, indicating an inflationary gap. conversely, when real gdp falls below its natural level, the output gap becomes negative, signalling a recessionary gap (barigozzi & luciani, 2023). the taylor rule suggests central banks adjust nominal interest rates in response to inflation and output gaps. nominal rates need to climb more when inflation rises by 1%., ensuring the real interest rate rises by at least 0.5%. this helps manage inflation and stabilise output around potential levels, smoothing business cycle fluctuations (bernanke, 2022). agbioforum, 26(3), 2024 | 43 shani et al — measuring and analyzing the dynamic effects of monetary policy on gdp usa case study 1990-2023 time horizon natural output and response dynamics time horizon and natural outcome monetary policy enables central banks to influence real gdp and price levels by modulating aggregate demand (chugunov et al., 2021). in the short term, production may deviate from its natural level due to shifts in factors affecting the relationship between aggregate supply and demand, which in turn impact output and price levels (pérez-domínguez et al., 2021). when output exceeds the natural level, wage setters revise their price level expectations upward, resulting in prices higher than anticipated. this reduces real money balances, increases interest rates, and subsequently lowers production and demand. on the other hand, when output is below its natural level, prices decrease and demand is stimulated while production is boosted. in the long run, a return to its natural level of output is achieved through adjustments in price levels (nikonenko et al., 2022). however, there are instances when aggregate demand is insufficient to maintain real gdp at its natural level, and central bank intervention is necessary. in an attempt to stem excessive growth in aggregate demand, contractionary monetary policy is employed by the central bank while expansionary policy is employed to address severe recessions in the economy. this is because inflation rises when real gdp is at its natural level and careful calibration of policy is essential in balancing growth and stability in the economy (fornaro & wolf, 2023). dynamics of output response to stability indicators economic variables have varying speeds of adjustment with some of them moving rapidly and others slowly. exchange rates, for instance, and interest rates and prices in financial markets adjust quickly in a bid to bring equilibrium in money and exchange markets as a consequence of dynamic interaction between demand and supply. output in goods markets adjusts at a slower pace as firms take time to scale up or scale down production in response to a shift in sales. patterns of consumption also take time to respond to changes in levels of output and income. these lags are behind the delay in the multiplier effect as full implications of changes in the economy might take a long period of time to materialize. importers and exporters also take time to adapt to changes in exchange rates since they might take time to terminate existing contracts, negotiate new trading relations, or acquire new suppliers and markets (rego et al., 2022). these varying speeds of adjustment are a testament to the complexity of economic dynamics and policymakers' challenges in making effective and timely interventions. monetary policy dynamics in the economy monetary policy dynamics in a closed economy in a closed economy, figure (1-a) shows output and interest rates as functions of the nominal money supply, while figure (1-b) depicts the is-lm framework. initial equilibrium is at point a (is-lm intersection), with natural output (yn) and initial interest rate (i). monetary expansion shifts the lm curve downward (lm to lm'), moving short-run equilibrium to a', where output rises and interest rates fall. in the short run, prices increase (p to p'), shifting lm upward (lm" to lm"), partially offsetting the expansion. eventually, the lm curve returns to its original position, restoring equilibrium at a (yn and i). real money balances remain unchanged in the long run, as nominal money supply and price levels rise proportionally. this adjustment aligns with okun’s law, linking output growth to unemployment changes. figure 1: the dynamic monetary expansion effect on output and interest rates in a closed economy (blanchard & johnson, 2013). agbioforum, 26(3), 2024 | 44 shani et al — measuring and analyzing the dynamic effects of monetary policy on gdp usa case study 1990-2023 monetary policy dynamics in open economies monetary policy boosts production by reducing interest rates and encouraging investment. in a closed economy, increased money supply raises spending, while in a small open economy, rates align globally (wei & han, 2021). under flexible exchange rates, production rises briefly before price shifts establish a new equilibrium (demir & razmi, 2022). when the central bank expands the money supply, the lm curve shifts rightward, increasing production and depreciating the exchange rate, assuming a stable price level (vîntu, 2022). as illustrated in figure 2, under a floating exchange rate system, monetary expansion results in a rightward shift of the lm curve to position b, representing both temporary and long-term equilibrium, thereby increasing output. however, the economy does not immediately reach point b, as short-term equilibrium is not instantly attainable. in the context of dynamic adjustment, expectations of currency depreciation must be considered, which are overlooked in static comparative analysis. international investors should factor in the potential movement of exchange rates towards a new equilibrium when making investment decisions. the following equation illustrates equilibrium in the foreign exchange market: 𝑖 = 𝑖𝑤𝑜𝑟𝑙𝑑 + 𝐸+1 𝑒 − 𝐸 𝐸 here, 𝐸+1 𝑒 is the expected exchange rates, e the current exchange rate, and 𝑖𝑤𝑜𝑟𝑙𝑑 the world interest rate is the horizontal fe curve. as expectations of currency appreciation or depreciation intensify, the horizontal fe curve shifts upward or downward. given that expectations play a crucial role in dynamic adjustment, understanding how future exchange rate expectations are formed is essential (gartner, 2009). figure 2: the dynamic impact of monetary expansion on output and interest rates in an open economy (gartner, 2009). the is curve shifts rightward due to increased net exports, while the home currency depreciates as the actual exchange rate influences aggregate demand (leightner, 2024). figure 2 illustrates that at the new static equilibrium point b, when the money supply increases, the lm curve moves to lm1, accompanied by a rightward shift of the is curve. in the immediate short term, output remains fixed at y0. the money market will only experience disequilibrium at this production level if interest rates decline to i'. at this rate, both the exchange rate and the demand for domestic bonds decline. when the exchange rate falls to its new equilibrium level, expectations of future domestic currency appreciation emerge. at this point, anticipated appreciation offsets the interest rate differential, stabilising the foreign exchange market. consequently, investors are indifferent between holding domestic or international bonds. the depreciation of the exchange rate causes a further rightward shift of the is curve beyond is1, establishing a new equilibrium at isl. increased demand for goods and services raises output, which in turn heightens money demand, leading to higher interest and exchange rates. this triggers an upward shift in the fe curve, progressively elevating the intersection of the fe and lm curves until it reaches lm1 at point b (gartner, 2009). monetary policy shocks tend to have a greater impact in economies with more flexible exchange rates and higher foreign trade as a share of gdp. a strong correlation exists between trade openness and the responsiveness of production to monetary policy shocks (eichenbaum, johannsen, & rebelo, 2021). agbioforum, 26(3), 2024 | 45 shani et al — measuring and analyzing the dynamic effects of monetary policy on gdp usa case study 1990-2023 figure 3: adjustment dynamics following a monetary expansion under flexible exchange rates (gartner, 2009). figure 3 illustrates the adjustments following a monetary expansion under a flexible exchange rate regime. according to the mundell-fleming model, an increase in the money supply has strategic implications, as output adjusts gradually due to the delayed response of production, as shown in figure 3(a). although output is expected to increase in the long run, this process unfolds over time. in contrast, the exchange rate reacts swiftly, achieving the necessary adjustment almost immediately, as depicted in figure 3(b). in the short term, the burden of adjustment falls on the exchange rate, which ultimately responds more significantly. the exchange rate must eventually go from e0* to e1*, as shown in figure 3(b), representing the comparative static effect. exchange rate overshooting occurs when the immediate response to a shock, when the desired long-term adjustment is exceeded, like in the case of an increase in the money supply, the rate eventually returns to its equilibrium level (gartner, 2009). methodology this study examines the influence of monetary policy indicators on the us economy using data from the world bank, imf, and federal reserve. by analysing data from 1990 to 2023, it aims to quantify and interpret the evolving impact of various monetary variables on us gdp. the central research question is whether monetary policy indicators exert dynamic long-term effects or if their influence is confined to the short term. accordingly, the study evaluates the effectiveness of monetary policy across different time horizons. an inductive analytical approach is adopted, involving an examination of the development of research variables, an extrapolation of economic trends, an analysis of economic events, and a deduction of their economic implications through time series analysis. to determine the relationships between the study’s economic variables, the ardl model is employed. 𝐺𝐷𝑃 = 𝑐 + λgdpt−1 + β1𝑅𝑅t−1 + β2ert−1 + β3nct−1 + β4𝐼𝑅t−1 + ∑ a1gdpt−i n i=1 + ∑ a2rrt−i m i=0 + ∑ a3ert−i m i=0 + ∑ a4nct−i m i=0 + ∑ a5irt−i m i=0 + μt data analysis table 1 facilitates the analysis of the evolution of key monetary policy indicators and their relationship with us gdp at constant 2012 prices (2012 = 100) over the research period. the analysis proceeds as follows: required reserves table 1 shows that required reserves fell by 20.74% in 1991, accompanied by a 0.93% decline in gdp. subsequent years saw fluctuations in both reserves and output growth. the highest output growth rate occurred in 2021 at 5.69%, coinciding with a 9.26% decline in required reserves, which expanded the money supply, reduced interest rates, and boosted investment. the compound growth rate for 1990–2023 was 0.82%. excess reserves table 1 shows that excess reserves grew by 23.02% in 1991, while gdp declined by 0.93%. in 1992, excess reserves fell by 16.98%, coinciding with gdp growth of 2.77%. the highest excess reserves growth occurred in 2008, alongside a 1.73% drop in gdp due to the financial crisis. from 2021 to 2023, excess reserves declined, while gdp grew by 5.69%, 1.03%, and 2.08%, respectively. a reduction in excess reserves can support gdp growth by reallocating funds to investment opportunities. the compound growth rate for 1990–2023 was 19.58%. exchange rate y1 time 0 adaptation dynamics effect of comparative stillness y0 money supply increases (a) output effect of comparative stillness exaggeration adaptation dynamics time money supply increases 0 e' e1* e0* (b) agbioforum, 26(3), 2024 | 46 shani et al — measuring and analyzing the dynamic effects of monetary policy on gdp usa case study 1990-2023 table 1: the development of output and some indicators of monetary policy in the us economy for the period 1990-2023 years gdp at constant prices 2010 = 100 (million dollars) growth rate% reserves required at constant prices 2010 = 100 (million dollars) growth rate% excess reserves at constant prices 2010 = 100 (million dollars) growth rate% broad money supply (m2) at constant 2010 prices = 100 (million dollars) growth rate% net domestic credit at constant prices 2010 = 100 (million us dollars) growth rate% central bank interest rate m2 to gdp ratio % net domestic credit to gdp ratio % 1990 9951882.24 100370.48 1563.24 7088080.74 7885880.99 7.00 71.22 79.24 1991 9859736.14 -0.93 79558.17 -20.74 1923.04 23.02 6902135.04 -2.62 7564960.25 -4.07 4.00 70.00 76.73 1992 10132746.15 2.77 80250.98 0.87 1596.60 -16.98 6688966.29 -3.09 7521680.85 -0.57 3.00 66.01 74.23 1993 10352788.08 2.17 85514.99 6.56 1630.72 2.14 6535942.60 -2.29 7568124.13 0.62 3.00 63.13 73.10 1994 10720336.58 3.55 86968.56 1.70 1576.69 -3.31 6395629.23 -2.15 7771389.16 2.69 5.50 59.66 72.49 1995 10932227.64 1.98 80884.69 -7.00 1442.96 -8.48 6648442.32 3.95 8145632.89 4.82 5.50 60.82 74.51 1996 11223389.57 2.66 71977.55 -11.01 1522.55 5.52 6967153.35 4.79 8385499.77 2.94 5.25 62.08 74.71 1997 11652262.84 3.82 62295.02 -13.45 1777.81 16.77 7352881.72 5.54 8882070.46 5.92 5.50 63.10 76.23 1998 12123288.74 4.04 58379.26 -6.29 2032.17 14.31 7935713.51 7.93 9567111.99 7.71 4.75 65.46 78.92 1999 12607714.40 4.00 54488.35 -6.66 1597.75 -21.38 8504209.01 7.16 10173337.95 6.34 5.50 67.45 80.69 2000 12980699.56 2.96 49322.71 -9.48 1552.47 -2.83 8893615.17 4.58 10641822.59 4.61 6.50 68.51 81.98 2001 13031520.06 0.39 47336.76 -4.03 3405.11 119.33 9335296.09 4.97 11289067.71 6.08 1.75 71.64 86.63 2002 13248934.59 1.67 46985.73 -0.74 1773.17 -47.93 9598683.36 2.82 11719040.91 3.81 1.25 72.45 88.45 2003 13579933.50 2.50 48551.16 3.33 2140.95 20.74 9798934.85 2.09 12136303.45 3.56 1.00 72.16 89.37 2004 14104086.03 3.86 50908.16 4.85 1894.42 -11.51 10091422.89 2.98 12661040.24 4.32 2.25 71.55 89.77 2005 14559088.31 3.23 49724.47 -2.33 1944.97 2.67 10548278.16 4.53 13374941.73 5.64 4.25 72.45 91.87 2006 14943890.83 2.64 45712.60 -8.07 1811.86 -6.84 11138596.18 5.60 14116708.64 5.55 5.25 74.54 94.46 2007 15222090.46 1.86 43326.20 -5.22 1978.59 9.20 12098192.65 8.62 15000723.86 6.26 4.25 79.48 98.55 2008 14958719.21 -1.73 45694.91 5.47 139503.70 6950.65 12603376.29 4.18 15236025.45 1.57 0.13 84.25 101.85 2009 14715513.59 -1.63 62646.18 37.10 854613.37 512.61 13345599.94 5.89 15197421.60 -0.25 0.13 90.69 103.27 2010 15048971.00 2.27 66295.00 5.82 1035298.15 21.14 12768868.67 -4.32 14674896.61 -3.44 0.13 84.85 97.51 2011 15122343.57 0.49 79963.27 20.62 1407241.16 35.93 13205384.46 3.42 15120835.61 3.04 0.13 87.32 99.99 2012 15437114.39 2.08 98042.18 22.61 1399054.54 -0.58 13571825.08 2.77 15400770.58 1.85 0.13 87.92 99.76 2013 15800875.08 2.36 110926.61 13.14 1854777.25 32.57 13977954.69 2.99 16281524.85 5.72 0.13 88.46 103.04 2014 16218693.53 2.64 126532.16 14.07 2359380.09 27.21 14467100.40 3.50 16907605.02 3.85 0.13 89.20 104.25 2015 16831406.67 3.78 137630.38 8.77 2311728.62 -2.02 14904126.78 3.02 17444614.87 3.18 0.38 88.55 103.64 2016 17084967.77 1.51 147152.18 6.92 2004625.34 -13.28 15285017.75 2.56 18070393.09 3.59 0.63 89.46 105.77 2017 17446695.40 2.12 160554.07 9.11 1900073.43 -5.22 15684891.82 2.62 18503481.26 2.40 1.38 89.90 106.06 2018 17937651.74 2.81 165370.32 3.00 1613974.19 -15.06 15928004.07 1.55 18370759.88 -0.72 2.38 88.80 102.41 2019 18356043.05 2.33 170274.24 2.97 1212634.35 -24.87 16957363.05 6.46 19118297.34 4.07 1.63 92.38 104.15 2020 17965169.68 -2.13 151379.68 -11.10 1677000.41 38.29 19631771.32 15.77 21798748.28 14.02 0.13 109.28 121.34 2021 18986651.56 5.69 137357.79 -9.26 1441577.11 -14.04 21911658.08 11.61 24329013.84 11.61 0.13 115.41 128.14 2022 19181787.23 1.03 133538.77 -2.78 1134545.17 -21.30 20117058.16 -8.19 22380093.05 -8.01 4.38 104.88 116.67 2023 19580477.06 2.08 133389.59 -0.11 817267.41 -27.97 19664941.06 -2.25 21813380.36 -2.53 5.38 100.43 111.40 timeframes compound growth rate% 1990-2000 -98.98 -99.06 -99.00 -98.98 -98.97 2001-2011 1.36 4.88 72.92 3.20 2.69 2012-2023 2.00 2.60 -4.38 3.14 2.94 1990-2023 1.95 0.82 19.58 2.96 2.95 the table was prepared by researchers based on the federal reserve bank, federal reserve economic data, and economic research division, st. louis. link: https://fred.stlouisfed.org imf, imf data portal, international financial statistics (ifs). https://data.imf.org/regular.aspx?key=61545855 imf, imf (ifs). https://data.imf.org/regular.aspx?key=61545849 federal reserve bank, federal reserve economic data, economic research division, st. louis. link: https://fred.stlouisfed.org the world bank for reconstruction and development, international statistics and data files, statistical bulletins for different years: https://data.albankaldawli.org/country/united-states?view=chart https://fred.stlouisfed.org/ https://data.imf.org/regular.aspx?key=61545855 https://data.imf.org/regular.aspx?key=61545849 https://fred.stlouisfed.org/ https://data.albankaldawli.org/country/united-states?view=chart agbioforum, 26(3), 2024 | 47 shani et al — measuring and analyzing the dynamic effects of monetary policy on gdp usa case study 1990-2023 the simple growth rate was calculated according to the following equation: 𝑟 = ( 𝑃𝑡−𝑃𝑡−1 𝑃𝑡−1 ) ∗ 100 the compound growth rate was calculated according to the following equation: 𝑅 = [((𝑃𝑇/𝑃0)^(1/𝑁)) − 1] ∗ 100 broad money supply the broad money supply has fluctuated, with gdp growth varying accordingly, particularly after financial crises. in 2021, it grew by 11.61%, alongside a 5.69% rise in gdp. us monetary policy influences global financial cycles, as the dollar underpins international banking, affecting borrowing costs (miranda-agrippino & rey, 2020). the compound growth rate for 1990–2023 was 2.96%. net domestic credit net domestic credit fluctuated throughout the study period, with its growth generally aligning with gdp expansion. the highest increase occurred in 2020–2021, contributing to a 5.69% gdp rise in 2021. a decline of 8.01% in 2022 corresponded with gdp growth slowing to 1.03%. historically, increased demand driven by money and credit has supported us gdp growth and employment (labonte & makinen, 2008). the compound growth rate for 1990– 2023 was 2.95%. interest rate over the course of the research, the central bank interest rate varied, reflecting economic conditions and policy objectives. it peaked at 7% in 1990 before falling to 3% in 1993. by 2000, it rose to 6.5% but dropped sharply in 2001–2002 to 1.75% and 1.25% following the september 11 recession, prompting the federal reserve to lower rates to stimulate growth. the lowest rate of 0.13% occurred in 2020–2021 to counter the covid-19 recession. expansionary monetary policy reduces interest rates, boosting spending, while rate hikes curb expenditure, lower the exchange rate, and support exports (labonte & makinen, 2008). the fed’s model predicts that a 1% rise in interest rates widens output gaps by 0.2–0.5% and reduces inflation by 0.2–0.8% over two years, with the impact varying based on employment levels. during the 2007–2009 financial crisis, the fed took unprecedented measures, including cutting rates to zero, providing direct financial support, and implementing quantitative easing— policies that continue to influence monetary strategy (labonte & makinen, 2008). table 1 indicates that the broad money supply to gdp ratio was lowest in 1994 at 59.66% and peaked at 115.41% in 2021, reflecting high liquidity. net domestic credit stood at 72.49% in 1994 and 128.14% in 2021, suggesting increased credit allocation for investment. figure 4 illustrates output growth alongside key monetary policy indicators from 1990 to 2023. moreover, figure 5 illustrates the trend in the total money supply and net domestic credit to gdp ratio from 1990 to 2023, highlighting their unified movement. figure 4: shows the researchers' use of data from table 1 to analyze output growth and a few monetary policy indicators in the us economy from 1990 to 2023. figure 5: the ratio of broad money supply and net domestic credit to gdp in the us economy for 1990-2023 by the researchers according to table 1. analysis of the results of the standard tests for the base year 2012 = 100, the research standard component was determined based on a set of economic indicators, outlined as follows: gdp=f(rr,er,nc,ir) where: • gdp: the pace of growth of the gross domestic product . • rr: the pace of growth of required reserves. • er: the pace of growthof excess reserves . • nc: the pace of growth of net domestic credit . • ir: the interest rates. the study analysed the impact of monetary policy indicators on us gdp growth from 1990 to 2023, focusing on interest rates, net domestic credit growth, excess agbioforum, 26(3), 2024 | 48 shani et al — measuring and analyzing the dynamic effects of monetary policy on gdp usa case study 1990-2023 reserves, and required reserves. before selecting an appropriate model for estimating the output function, the stability of these economic indicators must be assessed. unit root test table 2 presents the extended dickey-fuller unit root test results, indicating that the nc series is stable at level with a secant and general trend at a 5% significance level. the ir series is also stable at level, without a secant and general trend, at a 10% significance level. gdp is stable at the first difference with a secant and general trend at a 1% significance level. at a 5% significance level, rr is stable at the first difference with a secant; at a 1% significance level, it is stable without a secant and general trend. er is stable at the first difference with and without a secant and general trend at 1%, and with a secant and general trend at 5%. given that some indicators are stable at level and others at the first difference, the ardl model is appropriate, particularly for the dependent variable. table 2: the augmented dickey-fuller test for unit root. unit root test results table (adf) null hypothesis: the variable has a unit root with constant at level gdp rr er nc ir t-statistic 0.4310 -1.0903 -1.0237 1.6544 -2.4678 with constant & trend prob. 0.9813 0.7074 0.7331 0.9993 0.1325 n0 n0 n0 n0 n0 t-statistic -2.1581 -1.5222 -0.7937 -4.0036 -2.9556 without constant & trend prob. 0.4961 0.8006 0.9561 0.0188 0.1597 n0 n0 n0 ** n0 t-statistic 6.2339 0.3275 -0.4291 4.3947 -1.7088 prob. 1.0000 0.7740 0.5204 1.0000 0.0826 n0 n0 n0 n0 * with constant at first difference d(gdp) d(rr) d(er) d(nc) d(ir) t-statistic -6.1635 -3.2606 -3.9328 -5.7190 -4.9110 with constant & trend prob. 0.0000 0.0255 0.0050 0.0000 0.0004 *** ** *** *** *** t-statistic -6.0709 -3.0414 -3.9255 -6.1898 -4.8904 prob. 0.0001 0.1373 0.0224 0.0001 0.0022 without constant & trend *** n0 ** *** *** t-statistic -1.5205 -3.1994 -3.9809 0.1135 -5.0049 prob. 0.1184 0.0023 0.0002 0.7109 0.0000 n0 *** *** n0 *** notes: a: (*)significant at the 10%; (**)significant at the 5%; (***) significant at the 1% and (no) not significant b: lag length based on sic c: probability based on mackinnon (1996) one-sided p-values. estimating the output function by the autoregressive distributed lag model (ardl) table 3 indicates that the independent variables account for 64.4% of the variation in the dependent variable, with an adjusted r-squared of 0.5413. the estimated f-value confirms the model's statistical significance at the 1% level. based on akaike's criterion, it is clear from figure 6 that the optimal slowdown periods are (1,0,1,1,0), as they give the lowest value. table 3: ardl model for output function. variable coefficient std. error t-statistic prob.* gdp(-1) -0.553319 0.158996 -3.480084 0.0019 rr 0.101237 0.040886 2.476110 0.0207 er -0.000528 0.000176 -2.996214 0.0063 er(-1) -0.001074 0.000256 -4.202876 0.0003 nc 0.057599 0.062232 0.925549 0.3639 nc(-1) 0.184347 0.061138 3.015256 0.0060 ir 0.626067 0.171844 3.643220 0.0013 c 1.071479 0.641404 1.670521 0.1078 r-squared 0.644900 mean dependent var 2.181250 adjusted r-squared 0.541330 s.d. dependent var 1.693955 s.e. of regression 1.147234 akaike info criterion 3.324903 sum squared resid 31.58752 schwarz criterion 3.691337 log likelihood -45.19845 hannan-quinn criter. 3.446366 f-statistic 6.226666 durbin-watson stat 1.996983 prob(f-statistic) 0.000314 agbioforum, 26(3), 2024 | 49 shani et al — measuring and analyzing the dynamic effects of monetary policy on gdp usa case study 1990-2023 figure 6: optimal deceleration periods. bounds test the bounds test results in table 4 indicate that the calculated f-value (17.3859) exceeds the maximum tabular f-value (4.37) at a 1% significance level. thus, the null hypothesis of long-term equilibrium among the variables is rejected. table 4: test of boundaries. f-bounds test null hypothesis: no levels relationship test statistic value signif. i(0) i(1) f-statistic 17.38592 10% 2.2 3.09 k 4 5% 2.56 3.49 2.5% 2.88 3.87 1% 3.29 4.37 diagnostic tests serial correlation lm test the null hypothesis is accepted as table 5 demonstrates that the f and chi-square probability values are not significant at 5%. consequently, the model is unaffected by residual serial correlation. table 5: the serial correlation test. breusch-godfrey serial correlation lm test: null hypothesis: no serial correlation at up to 2 lags f-statistic 0.435383 prob. f(2,22) 0.6525 obs*r-squared 1.218346 prob. chi-square(2) 0.5438 heteroskedasticity test table 6 shows that the computed f and chi-square probability values exceed 5%, indicating insignificance. this suggests that heteroskedasticity does not affect the estimated model. table 6: heteroskedasticity test. heteroskedasticity test: breusch-pagan-godfrey null hypothesis: homoskedasticity f-statistic 1.973198 prob. f(7,24) 0.1015 obs*r-squared 11.68920 prob. chisquare(7) 0.1113 scaled explained ss 6.029269 prob. chisquare(7) 0.5363 histogram-normality test the model's errors are distributed normally, as seen by the jarque-bera statistic probability value of 0.924604 in figure 9, which is not significant at the 5% level. figure 7: the normal distribution of random errors. testing the predictive performance of the error correction model figure 8 shows that the thiel coefficient is 0.219, close to zero, indicating model accuracy. the bias ratio (bp) is 0.000136, and the variance ratio (vp) is 0.083254, both near zero. the covariance ratio (cp) is 0.916611, close to one. these results confirm that the estimated model is suitable for prediction, planning, and future economic policymaking. agbioforum, 26(3), 2024 | 50 shani et al — measuring and analyzing the dynamic effects of monetary policy on gdp usa case study 1990-2023 figure 8: predictive performance of the error correction model. parameter estimation (short-term and error correction parameter long-term ( error correction parameter and short-term parameter estimation according to figure 9, at the 1% level, excess reserves (er) significantly hinder gdp growth; a 1% rise in er lowers gdp growth by 0.000528%. this implies that increased surplus reserves reduce production by limiting investment in productive industries. since certain investments take longer to pay off, net domestic credit has little effect on production in the near term. according to figure 9, the error correction coefficient has an absolute value greater than one and is negative and statistically significant at the 1% level. given that 1.553319 of the deviations are adjusted in the near term to restore longterm equilibrium, this indicates a quick correction. figure 9: short-term parameters and error correction model. long-term parameters figure 10 reveals that rr positively influences gdp at the 5% level, with a 1% rise leading to a 0.065175% increase, reflecting credit expansion and investment. conversely, er negatively affects gdp at the 1% level, as a 1% increase causes a 0.001032% decline due to funds being retained rather than invested. nc significantly impacts gdp at the 1% level, with a 1% rise leading to a 0.403051% increase, supporting local investment growth. ir also significantly affects gdp at the 1% level, as a 1% increase results in 0.403051% long-term gdp growth, attracting capital and fostering economic expansion. figure 10: long-term features. discussion monetary policy instruments are effective in both the short and long term. amaral et al. (2022) assert that expansionary policies stimulate short-term economic growth, though their impact on inflation emerges over time, as measured by the cpi. this aligns with jordà et al. (2020), who contend that money is not neutral in the long run and that monetary policies produce lasting economic effects for a decade or more. their findings confirm that monetary shocks influence production, capital, and overall economic productivity over extended periods. however, agbioforum, 26(3), 2024 | 51 shani et al — measuring and analyzing the dynamic effects of monetary policy on gdp usa case study 1990-2023 these conclusions contrast with christie smith, who argues that the long-term effects of monetary policy on economic growth are minimal. while hameed (2010) suggests that interest rates have little correlation with gdp, long-term estimations indicate a significant relationship. similarly, the bounds test results are consistent with islam et al. (2022). conclusion the long-term effectiveness of monetary policy instruments depends on the economy's proximity to its natural output level, which influences the stability of equilibrium, despite their short-term efficacy. dynamic equilibrium models illustrate the trajectory of economic variables over time, necessitating the incorporation of the time dimension into the analysis, as economic interactions do not occur instantaneously. economists employ macroeconomic models, such as the taylor rule, to evaluate the persistence of monetary policy effects and assess the federal reserve's capacity to manage economic shocks. an analysis of gdp trends during the study period reveals relative stability in growth rates across most years, though the impact of economic crises is evident in periods of gdp decline. the bounds test confirms a long-term equilibrium relationship between gdp growth and monetary policy instruments, with excess reserves exerting a negative influence on gdp and net domestic credit showing no significant short-term effect. furthermore, rapid adjustment mechanisms are advantageous for correcting errors and achieving long-term equilibrium. over the long term, required reserves exhibit a positive and statistically significant impact on gdp, whereas excess reserves significantly reduce it. net domestic credit also demonstrates a favourable and substantial influence on economic output. monetary policy proves effective in the long run, as evidenced by the positive impact of interest rates on gdp, facilitated by the free movement of capital. these findings underscore the importance of considering both short-term dynamics and long-term equilibrium when designing and implementing monetary policy. references abadi, j., brunnermeier, m., & koby, y. 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https://ideas.repec.org/a/brc/journl/v55y2022i1p171-194.html https://ideas.repec.org/a/brc/journl/v55y2022i1p171-194.html https://doi.org/10.1016/j.irfa.2021.101705 https://doi.org/10.1016/j.irfa.2021.101705 https://doi.org/10.1016/j.energy.2024.130618 https://doi.org/10.1016/j.energy.2024.130618 agbioforum, 26(3): 106-118. ©2024 agbioforum wang & cheablam — the effect of host-guest interaction on guests' pro-ecological behaviour in rural-based b&b tourism... the effect of host-guest interaction on guests' pro-ecological behaviour in rural-based b&b tourism: a chained multiple intermediary models siyang wang ph.d candidate, college of graduate studies, walailak university, 222 thaiburi, thasala, nakhon si thammarat, 80160, thailand, lecturer,guangxi normal university, guilin, guangxi, 541000, china. orcid id: https://orcid.org/0009-0009-8266-1884 email: emiliedida666@126.com onanong cheablam* associate professor, school of management, walailak university, 222 thaiburi, thasala, nakhon si thammarat, 80160, thailand. orcid id: https://orcid.org/0000-0002-6090-6141 email: conanong64@gmail.com this study explores the influence of host-guest interactions on visitors' pro-ecological behaviours within the context of rural bed and breakfast (b&b) tourism. the research further examines how visitors' perceptions of value and their commitment to a location mediate this relationship. the subjects of the study were individuals staying at b&bs in the yangshuo cluster of china. a total of 401 data points collected through a questionnaire were analysed using amos. the results indicated that host-guest interaction had a significant effect on visitors' perceived value, which subsequently enhanced their attachment to the location. the study also revealed that these interactions indirectly fostered proecological behaviours among visitors through the development of a sense of value and loyalty to the property. while few studies have sought to connect the practices of host-guest interactions at b&bs with the environmentally conscious actions of visitors, this research contributes to this area. it opens new avenues for investigating the critical role of interaction behaviours in improving the surrounding environment. the findings may assist management in addressing the growing ecological concerns in popular tourist destinations by creating an atmosphere that encourages guests to engage in environmentally responsible activities. keywords: host-guest interaction, perceived value, rural-based b&b tourism, place attachment, pro-ecological behaviour. introduction ecological protection and commitment are central to global discussions, with guest behaviour being a critical factor influencing the ecological environment of tourist destinations. inappropriate guest behaviours pose significant challenges to the sustainable development of these locations. therefore, fostering and guiding proecological behaviours among guests in sustainable tourism settings has become an urgent and essential issue for the tourism industry to address. promoting guests' awareness of pro-ecological actions and encouraging them to preserve the ecological environment can support the environmental development of the leisure industry while reducing the costs associated with ecological governance (gomes & lopes, 2023). guests' pro-ecological behaviours in unfamiliar environments often encounter challenges such as data asymmetry and dysfunctionality, with externally imposed policies and regulations proving ineffective in reducing inappropriate ecological behaviours. in contrast, strong emotional motivations can overcome the limitations of situational factors, leading to positive behavioural spillovers. people with high ecological attachment are more likely to engage in pro-ecological actions across various environments. as a result, there has been growing interest in studying guests' pro-ecological behaviours from an emotional perspective. research frameworks have expanded to encompass place attachment, subjective wellbeing, natural empathy, and psychological distance, with findings suggesting that guests' pro-ecological behaviours are more stable, proactive, and sustainable when driven by emotional management (yu, 2017). in addition to passively responding to ecological circumstances, individuals actively engage with ecological issues. interactions between individuals from diverse cultural backgrounds can help break down preconceptions and foster greater appreciation, understanding, and respect for the guest destination (kirillova, lehto, & cai, 2015). however, some scholars argue that visitors' negative impressions and behaviours toward a destination may arise from culture shock resulting from the host-guest relationship (goeldner & ritchie, 2008). the relationship between host-guest interactions and visitors' behaviours is influenced by numerous factors and perspectives, making it difficult to define consistently. therefore, it is more comprehensive to examine the generation of proecological behaviours from the perspectives of individual cognition, emotion, and social interaction. this approach allows for a more holistic understanding of the active driving mechanisms behind such behaviours. b&bs originated in the uk and expanded globally, particularly in the us, france, japan, and other countries. in china, rural-based b&bs evolved from nongjiale, family-run hotels, and inns to boutique establishments. these b&bs now function as tourism and vacation destinations, offering high-quality accommodations shared between hosts and guests. through the "b&b+" model, they integrate agricultural experiences, local expertise, and cultural engagement, fostering harmonious human-nature interactions and co-creative value. this short-distance vacation mode has gained popularity, enhancing guests' ecological perception and experience of green spaces (fan et al., 2023). by addressing ecological issues through social interaction and activating the host's ecological wisdom, this model provides a win-win approach to ecological governance (zhu, wang, & liu, 2021). however, there is a lack of research into how these https://orcid.org/0009-0009-8266-1884 mailto:emiliedida666@126.com https://orcid.org/0000-0002-6090-6141 mailto:conanong64@gmail.com agbioforum, 26(3), 2024 | 107 wang & cheablam — the effect of host-guest interaction on guests' pro-ecological behaviour in rural-based b&b tourism... encounters influence visitors' pro-ecological behaviours. meanwhile, transnational tourism research has focused on cultural exchanges between hosts and guests (greer & wagner, 2023), while studies in china mainly explore interactions between local residents and domestic guests within a shared cultural context (wang, 2020). previous research suggests that cultural differences and research backgrounds impact the relationship between proecological experiences and behavioural intentions. thus, studies on guests' pro-ecological behaviour in rural-based b&b tourism in china may yield different findings compared to those in developed countries. place attachment, a fundamental concept in humanenvironment interactions, is a crucial psychological factor that reflects the "cognitive or emotional connection of an individual to a particular environment." one of its primary functions is to foster eco-consciousness and promote positive attitudes towards tourism destinations. however, empirical research on the relationship between place attachment and pro-ecological behaviours has yielded mixed results: some studies suggest that place attachment enhances pro-ecological behaviours, while others report the opposite or find no significant correlation at all. it is possible that the varying degrees of place attachment influence pro-ecological behaviours in distinct ways, which may explain these conflicting findings. another factor contributing to these cultural disparities could be the use of different measurement tools in various cultural contexts (daryanto & song, 2021). therefore, further studies are needed to explore the causes and functions of place attachment among b&b guests, particularly in urban settings. the theoretical foundation for this discussion is the stimulus-organism-response (s-o-r) model, which outlines the process through which an organism is exposed to external stimuli, undergoes mental processes, and subsequently exhibits behavioural responses. this model has become a key framework for studying guest behaviour and is widely applied in research on green consumption and the responsible ecological behaviour of visitors. factors such as the mode of interaction, emotional intensity, degree of intimacy, and economic reciprocity act as external stimuli, influencing guests' evaluation of their perceptual encounters (liu & chang, 2020). the s-o-r theory explains this interaction process and provides a theoretical basis for understanding how individuals' subjective perceptions and evaluations of pro-ecological behaviours shape their actions. literature review guest pro-ecological behaviour eco-conscious travellers often use terms like "green consumption" and "ecologically friendly travel methods" to describe behaviours aimed at preserving natural ecosystems. unlike the general public's everyday proenvironmental actions, tourists' behaviours are contextspecific, focusing on respecting local culture, preserving the environment, and limiting human interference (li et al., 2023a). this indicates that pro-ecological behaviours in tourism encompass both environmental and cultural aspects, offering a broader view of the destination's traditions. research on pro-ecological behaviours has primarily centred on cognitive factors, such as attitudes, norms, and values, as well as theories like normative activation and planned behaviour, which explain how attitudes towards ecological protection form and predict individuals' behaviour. however, there has been limited research on the emotional and psychological dimensions of pro-environmental behaviour, particularly in tourism. in mobile tourism contexts, guests' emotions are more varied and dynamic, and ecological appeals alone are insufficient to alter behaviour. emotional motivation can overcome contextual constraints and create positive spillovers, with individuals with high ecological attachment more likely to engage in pro-ecological actions across different environments (yu, 2017). additionally, the pro-ecological behaviours of vacationers are continuously influenced by social interactions with hosts and the destination itself. contemporary studies, however, focus more on the impact of such interactions on guest satisfaction and loyalty within marketing contexts (fan et al., 2023). host-guest interaction and pro-ecological behaviour of guests host-guest interaction refers to the direct engagement between individuals from different cultural backgrounds. munasinghe et al. (2022) define it as follows: "the hostguest interaction will generate a certain response as long as the two parties have contact, perceive and understand the information conveyed between them, and give a certain response." this definition highlights the dynamic nature of host-guest interaction in tourism, encompassing various forms beyond verbal communication. recent studies have increasingly focused on the "effects of host-guest interaction" on tourists' experiences. these findings support the notion that "host-guest interaction" plays a significant role in shaping visitors' impressions of a place, which in turn influences their purchasing decisions and overall satisfaction. furthermore, travellers may benefit from cultural differences by approaching them with an open mind, enriching their experiences while also fostering a stronger sense of shared humanity (lehto, davari, & park, 2020). unlike traditional hotels, urban bed and breakfasts prioritise communication between guests and hosts. bed and breakfast hosts not only observe their guests' behaviour but also actively guide it during their stay. they encourage guests to consume responsibly, take photos appropriately, and show respect for other cultures. through subtle means, hosts influence guest behaviour and, when necessary, respond to misbehaviour with implicit boycotts. the incorporation of the host’s ecological knowledge into their green practices has proven successful. as such, hosts play a central role in host-guest interactions and can potentially curtail less respectful behaviours among visitors. according to pu et al. (2023), host-guest interactions foster positive relationships between hosts and guests, transcending the traditional agbioforum, 26(3), 2024 | 108 wang & cheablam — the effect of host-guest interaction on guests' pro-ecological behaviour in rural-based b&b tourism... dynamic to co-create value in local sustainable tourism practices. mediating effect of perceived value consumers form opinions on a product's perceived value after assessing its perceived benefits relative to its cost. unlike more tangible metrics such as price and quality, value evaluation is abstract and subjective, varying with the consumer, culture, and time. the concept of tourists' perceptions of a destination's value emerged in the 1990s, focusing on their assessments of goods and services with an emphasis on "value for money." this perception extends beyond the actual value generated by the exchange of goods and services. over time, the definition has evolved, shifting from a focus on "value for money" to a broader, more comprehensive evaluation (sánchez et al., 2006). host-guest interaction and perceived value as a relational state, interpersonal interaction is fundamental to the tourism experience. effective "hostguest interaction" is considered crucial for guests to fully appreciate the value of their stay. through interactions with b&b hosts, emotional energy flows, and hosts help fulfil guests' psychological needs. in turn, b&b hosts positively influence guests' perceptions of value through the products and services they offer (ye et al., 2022). prior to the trip, guests typically initiate contact with the b&b host via an information platform. the exchange of basic functional information initiates interactive communication, which reduces guests' risk perception and helps them evaluate the "value for money," facilitating the decision-making process. this interaction fosters emotional communication, easing guests' unfamiliarity during their travels, while high-quality interactions enhance the overall experience value for customers. during the stay, the host-guest interaction, through activities such as welcoming ceremonies, product services, and problem-solving, fosters a familial and friendly atmosphere, evoking positive emotions in guests and alleviating feelings of constraint or awkwardness. furthermore, the landscape design of the b&b, the local folklore, and the natural environment all contribute to enriching the guest experience, with the host-guest interaction playing a central role in this process (qian & li, 2024). pro-ecological behaviour and perceived value from a marketing perspective, behavioural loyalty, brand confidence, destination image appraisal, and value cocreation are positive outcomes associated with perceived value (le, mai, & pham, 2023). however, value is relative and subject to change due to various factors, including context, industry, and time. perceived value consists of four key components—experience value, cost value, service value, and resource value—that most significantly influence environmentally responsible behaviours among forest tourists (liu, wang, & liu, 2022). as tourists engage with nature, listening to sounds such as birdsong and wind, they become more immersed and develop a deeper connection to the environment. this heightened perceived value encourages hikers to adopt environmentally responsible behaviours, making them more aware of ecological changes and fostering a greater sense of care for the natural world. the mediating effect of perceived value the social exchange theory highlights individuals' decision-making processes, where they aim to maximise benefits and minimise costs in social interactions. guests may decide whether to engage with their hosts based on the perceived value, assessing if the services provided outweigh the costs. however, varying interaction mechanisms can influence guests' perceptions. for instance, tenants sharing space with hosts may value social well-being, while those booking the entire space and avoiding contact may prioritise the space's functionality and economic value (lee, 2022). through positive hostguest interactions, b&b hosts can communicate the destination's values and meanings, encouraging guests to engage in beneficial ecological actions and provide more favourable post-trip evaluations. when hosts offer diverse sensory experiences that align with guests' sensory needs—drawing on natural landscapes, local culture, natural sounds, and green products—they can significantly impact guests' perceived value and behaviours. this fosters a sense of responsibility towards nature, promoting harmonious coexistence between humans and the environment (zhang, guo, & shen, 2022). perceived value serves as a key bridge, connecting variables and influencing relationships. the mediating role of place attachment bowlby (1977) introduced the concept of "place attachment" as a component of psychological attachment theory. in this framework, "attachment" pertains to the emotional connection, while "place" refers to the surrounding environment, encompassing both physical and social elements. an individual’s emotional bond with their geographic environment is shaped by the meanings they ascribe to it through their interactions with it. the validity of this two-dimensional structure has been corroborated in various contexts, with traditional research asserting that place attachment comprises two components: place identity and place dependence (pineda et al., 2023). a person’s sense of place identity is forged through their connection to a specific environment. it is widely accepted that individuals feel an intrinsic connection with the location that best reflects their identity. in contrast, place dependence refers to an individual’s functional reliance on a particular location. rather than being based on emotional attachment, its strength is determined by how effectively the location serves the functional needs of its users. this functional dependency forms the foundation of place attachment, which, in turn, can drive individuals to engage in specific behaviours tied to their affinity for particular places. place attachment serves as a micro-level indicator of both affective and functional psychological states, and it is a critical variable in the "psycho-behavioural" framework for examining human-place relationships. this framework is valuable for understanding behavioural intentions, agbioforum, 26(3), 2024 | 109 wang & cheablam — the effect of host-guest interaction on guests' pro-ecological behaviour in rural-based b&b tourism... particularly in the context of assistive technology. consequently, place attachment plays a significant role in promoting eco-consciousness and fostering positive attitudes toward tourist destinations (kalantidou, 2023). place attachment and host-guest interaction tourists are more likely to develop a strong emotional connection to a location when they form social bonds or engage in meaningful activities. physical sensations and interpersonal interactions contribute to creating this emotional attachment, especially when visitors leave their usual surroundings for a new destination. an individual's sense of place attachment is linked to the alignment between their travel goals and personal identity. when staying at rural bed and breakfasts, guests often bring with them expectations of a meaningful connection to the destination, shaped largely by social interactions. in eastern cultures, the host-guest relationship and the significance of the location are particularly valued (zhang & ji, 2022). as china's rural population has increasingly migrated to urban areas, modern urbanites have developed a nostalgic attachment to rural life. this emotional connection fuels a desire for experiences that reflect the rural community's emotional essence. rural tourism and b&bs have become behavioural strategies for temporarily addressing this need. the emotional bond fostered through prompt assistance, authentic communication, and dedication beyond contractual obligations enhances the "home atmosphere" of b&bs, offering a more personal and emotionally fulfilling experience than hotels or other nonstandard accommodations, which struggle to evoke the same "home feeling" and "human touch" (so, kim, & oh, 2021). pro-ecological behaviour and place attachment an individual's sense of place attachment can significantly influence their level of commitment and responsibility towards a specific location, thereby overcoming contextual barriers to ecological behaviour, such as differing social norms and the accessibility of essential amenities. as a result, individuals are more inclined to engage in environmentally responsible actions when they feel a strong attachment to a particular place. research has shown that guests who develop a deep connection to their accommodation or destination are more likely to exhibit eco-conscious behaviours and actively contribute to its preservation. this includes becoming more aware of environmental degradation, demonstrating a greater commitment to environmental protection, and incorporating respect for the natural environment into their daily routines (chen et al., 2024). place attachment and its mediating effect attachment is a multi-dimensional psychological framework that mediates the relationship between environmental cues and actions (lewicka, 2011). the so-r theory, which underpins this framework, suggests a sequential link between stimuli, organisms, and responses. a substantial body of literature highlights the mediating role of attachment to specific locations. this study found that, in the tourism context, guests' ecological responsibility behaviour is influenced by the indirect effects of local identity and dependence, with local identity playing a more significant mediating role than chain mediation. research by irani, rasoulzadeh aghdam, & ghasemzadeh (2023) in iranian urban communities confirmed the mediating function of local dependency in the relationship between ecological intuition, social relationships, and pro-ecological behaviours. in rural-based b&b tourism, the rich host-guest interaction and the functional and emotional aspects of the b&b give meaning to the place. this interaction strengthens the connection between guests and the location, facilitating the formation of local cultural identification and dependence. guests create unique memories, develop a sense of belonging, and perceive the place as meaningful, leading to attachment. as a result, guests exhibit psychological tendencies towards convergence and positive behaviours, which, in turn, influence their ecological responsibility. the greater the personal attachment to the place, the more likely guests are to demonstrate pro-ecological behaviours (li et al., 2023b). place attachment, perceived value and chain mediation place attachment and perceived value in addition to providing accommodation, b&bs act as a conduit for rural culture, enabling visitors to engage with the perceived cultural value of the items they encounter in their daily lives, thereby fostering a sense of place attachment. huang & bing (2021) utilised web scraping techniques on platforms such as airbnb and ctrip.com to investigate the relationship between guests' place identity and perceived value in b&bs in shanghai, china. their study revealed that as guests' place identity strengthened, their cultural perceptions of the rural's b&bs exhibited a more consistent spatial pattern. furthermore, the researchers identified that the extent to which cultural perceived value was influenced depended on factors such as the accessibility of cultural information and guests' preferences for that information. place attachment, perceived value and their chain mediation ecological actions among mass visitors are typically "extrinsically driven" rather than directly self-directed. the integration of "extrinsic motive" and "desire" into the model of goal-directed behaviour (mgb) may offer a more nuanced understanding of these behaviours. the process through which mass visitors engage in proecological actions might be more effectively explained through the concept of "desire." the external driving influence of place attachment has been widely supported by relevant research. jiang & sun (2021) developed a model to explore how nostalgic feelings impact visitors' eco-conscious behaviours in cultural and historical districts, using the mediating roles of place attachment and perceived value. they found that visitors' environmentally agbioforum, 26(3), 2024 | 110 wang & cheablam — the effect of host-guest interaction on guests' pro-ecological behaviour in rural-based b&b tourism... responsible actions were indirectly influenced by nostalgic emotions, which led to enhanced perceptions of value and a stronger connection to the place, ultimately fostering proecological behaviours. the study also demonstrated that, through the mediation of place attachment, the perceived uniqueness of tourism destinations (especially islandbased) significantly strengthened visitors' attachment to the place, thus encouraging value co-creation behaviours. in the context of human-environment interaction, cognitive evaluation theory provides an underlying mechanism that enhances ecological sensitivity and bolsters the loyalty of rural boarding summer tourists. place attachment, in this context, serves as a mediator in the relationship between ecological perception and tourist loyalty. figure 1: conceptual framework. the development of hypotheses the table 1 presents both the hypotheses and their corresponding null hypotheses. table 1: development of hypotheses. hypothesis number hypothesis null hypothesis h1 host-guest interaction has a positive effect on guests' pro-ecological behaviour. host-guest interaction does not positively influence guests' pro-ecological behaviour. h2 host-guest interaction has a positive effect on perceived value. host-guest interaction does not positively influence perceived value. h3 perceived value has a positive effect on proecological behaviour. perceived value does not positively influence proecological behaviour. h4 perceived value mediates the relationship between host-guest interactions and pro-ecological behaviour. perceived value does not mediate the relationship between host-guest interactions and pro-ecological behaviour. h5 host-guest interactions positively influence on place attachment. host-guest interactions do not positively influence place attachment. h6 place attachment has a positive effect on proecological behaviour. place attachment does not positively influence proecological behaviour. h7 place attachment mediates the relationship between host-guest interactions and pro-ecological behaviour. place attachment does not mediate the relationship between host-guest interactions and pro-ecological behaviour. h8 perceived value positively influences place attachment. perceived value does not positively influence place attachment. h9 perceived value and place attachment have a chainmediated effect on the relationship between hostguest interactions and pro-ecological behaviour. perceived value and place attachment do not have a chain-mediated effect on the relationship between host-guest interactions and pro-ecological behaviour. methodology study context this study focuses on guests at b&bs in yangshuo county, guilin city, china. in 2023, yangshuo county attracted 21.1143 million tourists, generating a total expenditure of 30.029 billion yuan, earning it recognition as one of china's top 100 counties for tourism strength. according to the guilin people's government website, the region welcomed 21,015,600 domestic tourists, with a total domestic tourism expenditure of 29.780 billion yuan, while the number of inbound tourists reached 98,714,000. in recent years, the yangshuo b&b sector has experienced significant growth. by the end of 2022, around 1,000 b&bs in yangshuo were listed on ctrip (ctrip, established in 1999, is china's largest integrated travel service company). the distribution of b&bs is highly concentrated and corresponds closely to the distribution of tourism resources. the accommodation and the region's distinctive topography and landscape are interdependent, emphasising both natural and cultural vitality. this has led to the development of a unique model for accommodation that integrates ecology, culture, and tourism. furthermore, rural village b&b tourism, characterised by experiential and participatory tourism, involves more frequent and intensive interaction between hosts and guests compared to other tourism activities. therefore, yangshuo's b&b guests provide a representative sample for this research. agbioforum, 26(3), 2024 | 111 wang & cheablam — the effect of host-guest interaction on guests' pro-ecological behaviour in rural-based b&b tourism... survey design part one of the study's questionnaire captures demographic details such as respondents' gender, age, education, profession, and income. part two includes factors related to demographic characteristics, while the second half contains measurement items for the four key constructs of interest. all four variables are second-order factors. as per wang (2021), the subject-object interaction is assessed through three sub-dimensions: "service interactions" (5 items), "social interactions" (7 items), and "interaction quality" (5 items). perceived value comprises five subdimensions: quality (6 items), social (3 items), emotional (5 items), knowledge (3 items), and cost (3 items). place attachment is measured using ten items, two of which relate to the "dimensions of place dependence and place identity." pro-ecological behaviours are evaluated using two dimensions: low-effort behaviours (3 items) and higheffort behaviours (items). all questions were rated on a 5point likert scale, where "1" indicates sd, "2" d, "3" n, "4" a, and "5" sa. data collection and sampling when determining sample size, considerations such as confidence intervals, allowable errors, and sampling procedures are essential, in line with sociological research standards. typically, a sample size to variable ratio of 5:1 is acceptable, though a 10:1 ratio is preferred when variables adhere to a normal or elliptical distribution (huang, 2005). since factor analysis is used to evaluate the questionnaire's reliability in this study, the sample size is determined based on the standards for factor analysis. the questionnaire comprises 59 items measuring four variables, indicating a required sample size between 295 and 590. a sample size of 500 is selected, accounting for factors like response rate and research validity. on 24th october 2023, an initial survey with 151 respondents was conducted to test the readability, clarity, reliability, and face validity of the instrument. in three separate sessions between november and december 2023, participants were asked to complete official questionnaires. the research team explained the study's purpose to participants, confirming whether they had previously stayed in a bed and breakfast. with their consent, the surveys were distributed for completion during their visit. data analysis method the study employed spss 23.0 and amos 24.0 software for data analysis. a confirmatory factor analysis was conducted to evaluate key indices of the sample, including factor loadings, average variance extracted (ave), and reliability (r.c.r.). to assess the model’s fit and test the hypotheses, the following fit indices were applied: χ2/agfi, nfi, rmsea, df, gfi, ifi, and tfi. additionally, discriminant validity of the variables was tested by examining their correlation coefficients. finally, the relationships and influences among the variables were assessed using standardized coefficients and p-values. the results for each hypothesis were analysed, and meaningful conclusions were drawn from the discussion of these outcomes. data collection sample demographics and descriptive analysis out of the 500 surveys distributed, 450 responses were received. however, only 409 questionnaires were deemed suitable for analysis, as improperly completed ones were excluded. the descriptive characteristics of the primary sample are presented in table 2. table 2: sample demographics and characteristics. variable category n=409 frequency percentage gender female 230 56.2 male 179 43.8 age 18-24 102 24.9 25-34 138 33.7 35-44 82 20 45-54 40 9.8 55-64 46 11.2 65 or older 1 0.2 education high school or less 52 12.7 university degree 320 78.2 master's or phd 37 9.0 guest origin in the province 183 44.7 out of province 226 55.3 length of stay 1day 44 10.8 2-3days 314 76.8 4days and above 51 12.5 companion friend 181 44.3 family 171 41.8 group tour 43 10.5 alone 14 3.4 the gender distribution of the respondents was slightly skewed, with 43.8% male and 56.2% female participants. a significant portion of the sample, 50%, was under 34 years old, suggesting a predominance of younger travellers. geographically, 55.3% of the respondents were from outside the guangxi zhuang autonomous region, agbioforum, 26(3), 2024 | 112 wang & cheablam — the effect of host-guest interaction on guests' pro-ecological behaviour in rural-based b&b tourism... while 44.7% were local to the region. regarding the duration of their stay, 76.8% of tourists spent 2-3 days at yangshuo b&bs. in terms of travel arrangements, most tourists preferred self-guided tours; 44.3% travelled with friends or family, while 3.4% journeyed alone. only 10.5% participated in group tours, and 41.8% travelled independently. data analysis the official questionnaire comprises two key sections: the reliability test and the validity test, which assess the consistency and accuracy of the measurement tool, respectively. reliability test in this study, the reliability of the questionnaire was assessed using a cronbach's alpha (α) value in spss 22.0 for the collected samples. the results indicated strong consistency, with an overall internal consistency coefficient of 0.931 for the sample scale. reliability indicators for all components were above 0.7, demonstrating excellent dependability of the scale. the reliability values for each component are shown in table 3. table 3: reliability analysis. dimension (math.) cronbach's alpha quantities variant cronbach's alpha quantities pv1 0.924 5 pv 0.922 20 pv2 0.787 3 pv3 0.821 3 pv4 0.871 6 pv5 0.881 3 hg1 0.900 5 hg 0.911 17 hg2 0.902 7 hg3 0.894 5 peb1 0.757 3 peb 0.808 6 peb2 0.840 3 pa1 0.918 5 pa 0.913 10 pa2 0.927 5 validity analysis the validity evaluation of the scale in this study focused on both structural and content validity. the evaluation indices selected were based on well-established measures from previous scholars and were developed under the supervision of relevant experts and educators, ensuring relatively high content validity. the structural validity was assessed through confirmatory factor analysis (cfa), which included both convergent and discriminant validity. the scale, resembling a measurement instrument, was subjected to cfa using amos 24. structural validity the data were found to be well fitted by the "measurement model," as indicated by several fit indices. the χ²/df value was 1.239 (p < 0.05), with other metrics such as cfi = 0.977, pcfi = 0.892, ifi = 0.977, rmsea = 0.024, tli = 0.974, pgfi = 0.772, and gfi = 0.878. in terms of absolute fit metrics, the chi-square value was 1560.182, with 1259 degrees of freedom, and the χ²/df ratio was 1.239, while the rmsea was less than 0.05. regarding incremental fit metrics, the ifi, cfi, and tli values exceeded 0.90, while the pgfi and pcfi values were below 0.5. all fit indices aligned with the threshold values, as presented in table 4. table 4: model fit measurement. metric description benchmark observed value evaluation chi-square (χ²) statistical measure of discrepancy — 1560.182 — degrees of freedom number of independent comparisons — 1259 — χ²/df ratio model fit relative to complexity < 3 1.239 acceptable rmsea estimates model fit error < 0.05 0.024 acceptable cfi comparative fit index > 0.90 0.977 acceptable tli tucker-lewis index > 0.90 0.974 acceptable ifi incremental fit index > 0.90 0.977 acceptable pgfi parsimonious goodness-of-fit index > 0.50 0.772 acceptable pcfi parsimonious comparative fit index > 0.50 0.892 acceptable discriminant validity and convergent observations of convergent validity include factor loadings, c.r., and ave. the factor loadings for the measurement items of each latent variable range from 0.60 to 1.00, surpassing the theoretical minimum of 0.60, indicating a strong relationship between the observed variables and their respective latent constructs. the c.r. value computed in this study is 0.80, well above the threshold of 0.60, confirming good internal consistency. additionally, the ave value exceeds 0.50, meeting the established criteria. overall, the findings suggest that the observed indicators meet the basic requirements for convergent validity, demonstrating strong convergent strength of the survey measures, as shown in table 5. agbioforum, 26(3), 2024 | 113 wang & cheablam — the effect of host-guest interaction on guests' pro-ecological behaviour in rural-based b&b tourism... table 5: measuring the convergent validity of scales. variant measure term (math.) standardised coefficient standard error t-value p-value factor loading ave cr hg1 h5 1 0.753 0.643 0.900 h4 0.971 0.064 15.081 *** 0.741 h3 1.082 0.065 16.76 *** 0.816 h2 1.079 0.062 17.436 *** 0.846 h1 1.094 0.063 17.455 *** 0.847 hg2 h12 1 0.739 0.570 0.903 h11 0.971 0.066 14.646 *** 0.736 h10 1.004 0.065 15.366 *** 0.770 h9 1.004 0.067 15.07 *** 0.756 h8 1.04 0.068 15.312 *** 0.767 h7 0.945 0.064 14.734 *** 0.740 h6 0.971 0.063 15.466 *** 0.775 hg3 h17 1 0.799 0.629 0.894 h16 1.045 0.057 18.39 *** 0.833 h15 0.945 0.058 16.253 *** 0.754 h14 1.002 0.058 17.407 *** 0.797 h13 0.914 0.054 16.925 *** 0.779 pa1 a5 1 0.853 0.695 0.919 a4 1.037 0.046 22.663 *** 0.872 a3 1.017 0.049 20.707 *** 0.826 a2 0.958 0.05 19.158 *** 0.787 a1 0.968 0.047 20.737 *** 0.827 pa2 a10 1 0.785 0.720 0.927 a9 1.16 0.055 20.986 *** 0.907 a8 1.135 0.055 20.574 *** 0.894 a7 1.076 0.057 18.752 *** 0.833 a6 1.038 0.057 18.265 *** 0.816 pv1 p5 1 0.885 0.711 0.925 p4 0.897 0.041 21.696 *** 0.817 p3 0.936 0.043 21.913 *** 0.821 p2 0.932 0.042 22.402 *** 0.831 p1 1.001 0.042 23.986 *** 0.861 pv2 p8 1 0.689 0.556 0.789 p7 1.121 0.088 12.698 *** 0.776 p6 1.112 0.088 12.631 *** 0.768 pv3 p11 1 0.784 0.603 0.820 p10 0.99 0.066 15.019 *** 0.778 p9 0.985 0.066 14.875 *** 0.769 pv4 p17 1 0.686 0.532 0.872 p16 1.02 0.078 13.017 *** 0.722 p15 1.218 0.089 13.653 *** 0.763 p14 1.155 0.088 13.136 *** 0.730 p13 1.179 0.089 13.287 *** 0.739 p12 1.155 0.088 13.191 *** 0.733 pv5 p20 1 0.867 0.712 0.881 p19 0.901 0.047 19.137 *** 0.811 p18 0.932 0.046 20.258 *** 0.853 peb1 b3 1 0.728 0.514 0.760 b2 1.026 0.088 11.714 *** 0.758 b1 0.895 0.082 10.977 *** 0.661 peb2 b6 1 0.783 0.641 0.842 b5 1.048 0.064 16.401 *** 0.845 b4 0.956 0.062 15.36 *** 0.772 to assess discriminant validity, this study employed the more stringent ave method. specifically, we ensured that the square root of the ave for each factor was larger than the correlation coefficient between each pair of variables. after conducting correlation analyses using spss to obtain the variable-specific correlation coefficients, the ave square root values were calculated and organised into a table. as shown in table 6, the findings demonstrate agbioforum, 26(3), 2024 | 114 wang & cheablam — the effect of host-guest interaction on guests' pro-ecological behaviour in rural-based b&b tourism... sufficient discriminant validity, as the correlation coefficients between any two dimensions are smaller than the square root of the ave (diagonal values), indicating that the constructs are distinguishable from one another. table 6: differentiation of validity. hg1 hg2 hg3 pv1 pv2 pv3 pv4 pv5 pa1 pa2 peb1 peb2 hg1 0.802 hg2 0.475 0.755 hg3 0.355 0.401 0.793 pv1 0.164 0.181 0.236 0.834 pv2 0.134 0.144 0.154 0.506 0.848 pv3 0.211 0.153 0.199 0.529 0.422 0.843 pv4 0.164 0.119 0.159 0.449 0.404 0.496 0.745 pv5 0.190 0.165 0.141 0.465 0.425 0.330 0.374 0.777 pa1 0.173 0.127 0.202 0.320 0.297 0.316 0.223 0.183 0.729 pa2 0.194 0.159 0.140 0.347 0.293 0.360 0.250 0.230 0.470 0.844 peb1 0.205 0.104 0.139 0.167 0.191 0.160 0.187 0.147 0.213 0.194 0.717 peb2 0.242 0.210 0.231 0.316 0.209 0.272 0.331 0.253 0.243 0.330 0.435 0.801 testing hypotheses structural equation modelling (sem) is a well-established multivariate statistical technique widely used across various academic fields to analyse the covariance matrix of variables and explain the relationships between them. in this study, we chose to apply sem to further validate our proposed hypotheses and strengthen the evidence supporting our theoretical framework. (1) model evaluation all key fit indices that assess the adequacy of the theoretical model in relation to the data fell within the target range (χ²/df = 1.305, p < 0.05, cfi = 0.987, tli = 0.983, agfi = 0.960, rmsea = 0.027, nfi = 0.949, gfi = 0.975). notably, the nfi, tli, cfi, and agfi values exceeded the recommended threshold of 0.90, while the rmsea value was below the acceptable cut-off of 0.08. the measurement model, with 48 degrees of freedom and a chi-square/degrees of freedom ratio of 1.305, yielded a chi-square value of 62.631. these results demonstrate that the theoretical model fits well with the validation data table 7. table 7: model fitting results. fit index acceptable range observed value assessment chi-square — 62.631 — degrees of freedom — 48 — chi-square/df ratio < 3 1.305 acceptable rmsea (root mean square error of approximation) < 0.10 0.027 acceptable agfi (adjusted goodness-of-fit index) > 0.90 0.960 acceptable gfi (goodness-of-fit index) > 0.90 0.975 acceptable cfi (comparative fit index) > 0.90 0.987 acceptable (2) estimation of models (test for path relationships in sem) the p-values and path analysis coefficients necessary for testing the research hypotheses are presented in table 8. according to the results, subject-object interaction significantly and positively predicts perceived value (p < 0.05, se = 0.105, β = 0.382), supporting hypothesis h2. conversely, the place attachment hypothesis is rejected (p > 0.05, se = 0.105, β = 0.146). this outcome provides support for hypothesis h8, which posits a significant positive predictive relationship between perceived value (pv) and place attachment (pa) (p < 0.05, se = 0.105, β = 0.146). pv significantly positively predicts pro-ecological behaviour (peb) (p < 0.05, se = 0.071, β = 0.225), confirming hypothesis h3. additionally, pa also significantly positively predicts peb (p < 0.05, se = 0.083, β = 0.296), further supporting hypothesis h3. finally, hypothesis h6 is confirmed, as the positive predictive effect of host-guest interactions (hg) on peb is statistically significant (p < 0.05, se = 0.085, β = 0.231), thereby supporting hypothesis h1. table 8: model estimation results. trails standardised path factor unstandardised path coefficients standard error critical ratio significance suppose that s.e. c.r. p peb<---hg 0.231 0.242 0.085 2.838 0.005 h1 pv<---hg 0.382 0.546 0.105 5.173 *** h2 peb<---pv 0.225 0.165 0.071 2.322 0.020 h3 pa<---hg 0.146 0.204 0.105 1.936 0.053 h5 peb<---pa 0.296 0.221 0.083 2.674 0.007 h6 pa<---pv 0.570 0.558 0.076 7.298 *** h8 agbioforum, 26(3), 2024 | 115 wang & cheablam — the effect of host-guest interaction on guests' pro-ecological behaviour in rural-based b&b tourism... figure 2: model estimation results. (3) test of mediation effect the mediating mechanisms of the proposed model were examined using chain mediation analysis, a form of serial mediation analysis. theoretical pathways identified in the model suggest that guests' proecological behavioural attitudes are influenced by subject-guest interactions through three mediating channels: perceived value, place attachment, and interactional dynamics. to investigate the mediation effect, the bootstrap method in amos24.0 was employed, with 5000 bootstrap repeated samples drawn to generate an approximate sampling distribution. the mediation effect was tested by assessing whether 0 fell within the 95% confidence interval. the results showed that hypothesis h4 was validated, as perceived value (pv) significantly mediated the relationship between host-guest interactions (hg) and pro-ecological behaviours (peb), with an effect value of 0.090 and a 95% confidence interval (ci) of [0.016, 0.216] (biascorrected p < 0.05) and a 95% ci (percentile p < 0.05) of [0.008, 0.201], confirming its significance. hypothesis h7 was rejected, as place attachment (pa) did not significantly mediate in the relationship between hg and peb. the 95% confidence intervals under both the bias-corrected [ci = -0.005, 0.141] and percentile [ci = 0.000, 0.096] methods did not contain 0, indicating that the mediation effect was not significant, and the effect value was 0.045. hypotheses h8 and h9 were confirmed, with subject-object interaction leading to perceived value, which in turn leads to place attachment, and ultimately, an increased willingness to engage in pro-ecological behaviours. the effect was significant (p < 0.05, β = 0.067), with the bias-corrected 95% ci of [0.021, 0.169] and the percentile 95% ci of [0.016, 0.149], both p < 0.05, indicating a positive mediation path. these findings are detailed in table 9. table 9: mediation effect test. parameter estimate lower upper p efficacy as a percentage of ind1 ind2 ind3 total r1 r2 r3 diff1 diff2 diff3 .090 .008 .201 .031 20.27% .045 -.005 .141 .094 10.14% .067 .016 .149 .011 15.09% .444 .249 .678 .000 .203 .017 .476 .031 .102 -.011 .298 .094 .152 .038 .343 .011 .045 -.102 .186 .489 .023 -.111 .156 .674 -.022 -.112 .055 .529 discussion this study aims to develop and test a theoretical model explaining the connections between host-guest interactions, value perception, place attachment, and the likelihood of visitors engaging in environmentally friendly actions. the findings have significant implications for the travel and tourism industry. the chain mediation effect offers a deeper understanding, with this study being one of the first empirical investigations confirming the critical role of host-guest interactions in promoting visitors' environmentally responsible behaviours. it also highlights both cognitive and affective factors. the research explores the relationship between place attachment and perceived value, and their complex links to visitors' pro-ecological actions, focusing on the chained mediation effect that underscores visitors' environmental views and perceived trip value. the study found that the host-guest relationship positively influences pro-ecological behaviour. through personal and authentic cross-cultural exchanges with b&b hosts, urban b&b visitors experience a more immersive form of agbioforum, 26(3), 2024 | 116 wang & cheablam — the effect of host-guest interaction on guests' pro-ecological behaviour in rural-based b&b tourism... tourism, bringing them closer to the "real life" of their chosen destination. host-guest interactions enhance understanding, alleviate anxiety, and generate empathy, particularly through service and social interactions. these interactions, especially those focused on the humanities and natural beauty, encourage guests’ willingness to engage in pro-ecological behaviours. the goal is to promote eco-friendly actions by reshaping the decisionmaking context rather than restricting freedom of choice or influencing the merits of potential actions (van valkengoed, abrahamse, & steg, 2022), thus avoiding interference with guests' natural decision-making processes. ethical behaviours and host-guest interactions are mediated by perceived value. according to the study, substantial contact between hosts and guests, particularly through interactions with service personnel, enables guest satisfaction with a "carefully designed" and "staged" experience. in rural-based b&b tourism, the quality of service and social interactions significantly impacts the perceived value for guests. the effect of positive attitude assessments on behaviour has been further validated (geiger et al., 2019). the more positive the net benefit that locals perceive from tourism, the more willing they are to embrace it. when people engage in conversations, they learn about each other's experiences, fostering empathy and support. this "proper" exploration leads guests to form positive opinions about the destination. although a positive correlation was found between hostguest interactions and place attachment, the strength of this relationship was insufficient to establish place attachment as a mediator between host-guest interactions and proecological behaviours. possible explanations include: (1) the development of visitors' feelings of place attachment is not clustered and depends on the level of guest engagement, which contrasts with the strong native affiliation of locals to the place (lewicka, 2011); since the research subjects were mainly short-stay guests (1-2 days), forming strong place attachment is challenging; (2) guests primarily focus on relaxation and hedonistic enjoyment during their trip, and interactions with the host are initially viewed as a product that enhances the guest experience. according to social exchange theory, both parties assess the results of the interaction, influencing subsequent behaviours. thus, rather than being driven by emotional connections, guests' participation in pro-ecological behaviours is constrained by logical evaluations of the advantages and costs of such actions (chen, zhang, & hu, 2022). the host-guest interaction and its link to guests' proecological behaviours are mediated by place attachment and perceived value in a chain reaction. in the context of rural-based b&b tourism, guests do not engage in proecological behaviours primarily for ecological protection but rather due to the importance of ecological preservation in the countryside, which fulfils their specific destination experience needs. when guests perceive higher value, it fosters deeper place attachment, the formation of a placeself identity, and a stronger psychological connection with the destination. to meet their destination-specific needs, they become more inclined to protect "their" destination from harm, which, in turn, promotes pro-ecological behaviours. this highlights place attachment as a crucial mediating variable that transduces perceived value into pro-ecological actions. practical significance tourist planners and municipal governments can benefit from the study's management suggestions, especially for urban b&bs. tourist development plans should integrate the support of b&b owners and local residents to foster industry growth and hospitality. the involvement of rural residents and business owners in the hospitality sector provides opportunities for meaningful host-guest interactions and authentic experiences. in yangshuo county, china, b&b tourism relies on high-quality social connections (0.69) and interaction ratings (0.57) to enhance visitors' perceived value. unlike impersonal hotel services, rural accommodations highlight local culture, enabling guests to immerse themselves in the host's language, customs, and activities, while receiving emotional support and creating a welcoming atmosphere. this deepens emotional exchanges and strengthens guest attachment to the location, encouraging positive behaviours. ecological appeals alone are insufficient to alter guest behaviour towards greater ecological friendliness. the impact of guests' perceived ecological knowledge on proecological behaviours was weak (0.58), while cost perception (0.69) and emotion-based communication (0.76) had a more significant effect. emphasising community building through information sharing and local cultural experiences can enhance tourism, improve emotional perceptions, and increase post-tour engagement. collecting customer feedback promptly allows for service optimisation. additionally, altering attitudes through information about the non-ecological benefits of behaviours can help promote eco-friendly practices by highlighting their connection to enhanced tourist experiences and financial gains. while sentiment is central to the charm of b&bs, relying solely on it limits guests' emotional attachment to the location. by focusing on host-guest interactions, b&b owners can create a "home" environment that strengthens social connections between guests, operators, and the community. meaningful interactions transform guests into active participants, fostering interconnected identities and a deeper appreciation for the place. these interactions, combined with emotional resonance and value-for-money perceptions, deepen guests' emotional ties to the destination, create lasting memories, and encourage ecological responsibility and convergent thinking. limitations of the study and further research the methodology of this paper presents several limitations. firstly, it focuses solely on rural-based b&b guests in yangshuo county, guilin, which may not be agbioforum, 26(3), 2024 | 117 wang & cheablam — the effect of host-guest interaction on guests' pro-ecological behaviour in rural-based b&b tourism... representative of other regions. secondly, the study does not include multiple case locations for data collection, limiting its generalisability. thirdly, it fails to consider the influence of interaction styles in regions with varying cultural practices. additionally, the sample used in the study has specific constraints that may affect the results. to enhance the validity and applicability of the suggested model, future research should assess the relationships between variables across various destinations, considering different levels of development and growth patterns. the explanatory power of the model could also be strengthened by incorporating additional variables, such as the personal characteristics of the b&b owner, the scale of the b&b's resources, guests' excursion experiences, and demographic factors like gender and age. furthermore, the role of hostguest interactions in shaping guests' pro-ecological behaviours warrants further exploration. for a more comprehensive understanding, future studies could include qualitative research to supplement quantitative findings, providing deeper insights into the relationships and their boundary conditions. lastly, the study’s reliance on 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viet nam. email: nctiep@vnua.edu.vn dao thu tra* (corresponding author) hong duc university (hdu), thanh hoa province, viet nam. email: daothutra@hdu.edu.vn dinh van tien ha noi university of business and technology (hubt), ha noi, viet nam. email: dinhvantien.hubt@gmail.com thai van ha ha noi university of business and technology (hubt), ha noi, viet nam. email: thaivanha.hubt@gmail.com le thi thanh hao viet nam national university of agriculture (vnua), ha noi, viet nam. email: ltthao@vnua.edu.vn le thi phuong dung fisherites and technical economics college (ftec), bac ninh, viet nam. email: dung47ktts@gmail.com vuong thi khanh huyen viet nam national university of agriculture (vnua), ha noi, viet nam. email: vuongthikhanhhuyen@gmail.com effective leadership has emerged as a critical determinant in enhancing supply chain (sc) performance and is increasingly recognised globally for its role in improving business outcomes. despite its importance, further scholarly attention is warranted. this study investigates the influence of women's leadership traits—specifically, team collaboration, adaptability, and prompt responsiveness—on the effectiveness of the agricultural sc in vietnam. additionally, it explores the mediating function of team effectiveness in the relationship between these leadership traits and agricultural sc performance. primary data were collected through survey questionnaires distributed to women engaged in the agricultural sector. the study assessed data reliability and the interrelationships among the variables using smart-pls. the findings revealed that team collaboration, adaptability, and responsiveness positively correlate with agricultural sc effectiveness in the vietnamese context. furthermore, team effectiveness was found to significantly mediate the relationship between these leadership characteristics and sc performance. these insights offer valuable guidance for policymakers in formulating strategies aimed at enhancing agricultural sc outcomes through the development of women's leadership capacities. keywords: women's leadership characteristics, team collaboration, flexibility, team effectiveness, quickness, agricultural sc effectiveness. introduction agriculture remains a foundational pillar of vietnam’s economy, offering employment to a large segment of the population. the success of the country’s agricultural sector hinges on the effective coordination and strategic management of its complex sc networks to achieve financial viability and remain competitive. globally, increasing emphasis is placed on empowering women with greater decision-making authority within agricultural enterprises. women in leadership positions contribute significantly to supply chain advancement through their collaborative competencies and strategic responsiveness (li, 2020). this study explores the influence of female leadership attributes on agricultural sc outcomes, as well as the integrative role of team effectiveness in facilitating these impacts. a core element of women’s leadership is team collaboration, which plays a decisive role in enhancing agricultural sc performance. as highlighted by zajac et al. (2021), collaboration enables teams to achieve superior results through open communication, mutual respect, and a collective pursuit of common objectives. in food supply chain systems, close coordination among producers, suppliers, and retailers is vital. leaders who foster cohesive team dynamics are thus indispensable. female leaders who cultivate inclusive dialogue and champion teamwork are capable of accelerating and optimising supply chain operations by resolving challenges efficiently and maintaining collective focus (ruel & fritz, 2021). robust teamwork enables scs to better navigate disruptions and leverage emerging opportunities. flexibility is another crucial leadership trait among women that contributes to the success of agricultural scs. the agricultural sector is particularly susceptible to external shocks, including fluctuating weather patterns and shifting market dynamics driven by evolving consumer demands (escarcha et al., 2020). leaders demonstrating adaptability are better equipped to manage uncertainty by reallocating resources, implementing contingency plans, and modifying operational strategies. zhao et al. (2024) affirm that women occupying senior roles within scs offer the resilience and versatility required to maintain continuity during unexpected disruptions. their ability to adapt and execute timely decisions enhances sc efficiency amid volatile conditions. the third key leadership dimension explored in this study is prompt decision-making, which has been identified as essential in mitigating the adverse impacts of delays within agricultural scs (newman, fast, & harmon, 2020). timely and effective decision-making is vital, as prolonged response times can severely disrupt supply operations. women leaders improve sc performance by swiftly addressing logistical issues, quality control challenges, and market fluctuations (jha, agi, & ngai, 2020). through rapid intervention, they prevent delays and minimise material losses, thereby strengthening sc outcomes. mailto:nctiep@vnua.edu.vn mailto:daothutra@hdu.edu.vn mailto:dinhvantien.hubt@gmail.com mailto:thaivanha.hubt@gmail.com mailto:ltthao@vnua.edu.vn mailto:dung47ktts@gmail.com mailto:vuongthikhanhhuyen@gmail.com agbioforum, 26(3), 2024 | 139 tiep et al — women's leadership characteristics role on agricultural supply chain effectiveness: a study of women's experiences... team effectiveness amplifies the positive influence of these leadership traits on sc performance. productive teams enhance collaborative processes, improving overall performance (black et al., 2019). transparent communication and aligned goals enable teams to implement leadership directives efficiently. as aksekili & stettina (2021) observe, women who prioritise team synergy are more likely to generate favourable outcomes by aligning team capabilities with sc objectives. effective teamwork, combined with collaborative leadership, leads to more consistent and goal-oriented sc operations. moreover, flexibility is most impactful when supported by effective teams. leaders who encourage adaptability within their teams foster a culture of innovation and problem-solving in the face of unforeseen challenges (castillo & trinh, 2019). functional teams act as conduits for extending the benefits of flexibility throughout the organisation. srinivasan, hamdani, & ma (2021) argue that effective teams, led by adaptable leaders, respond rapidly to sc disruptions by devising alternative strategies that sustain operational flow. women leaders, when supported by cohesive teams, enhance sc adaptability and efficiency. decision-making speed also yields greater impact when executed within the framework of team effectiveness. women leaders capable of rapid decision-making shape the responsiveness of their teams by delegating responsibilities and fostering shared commitment to organisational vision (gleba et al., 2022). teams that are guided by clear objectives and comprised of skilled members respond quickly and effectively. according to shyaka et al. (2022), timely decision-making by women leaders translates into tangible sc improvements, such as reduced delivery times and fewer operational errors. strong teams thus empower women leaders to enact swift decisions that produce sustainable results. this study seeks to assess how female leadership, particularly through fostering collaboration and facilitating rapid decisionmaking, enhances agricultural sc effectiveness in vietnam. it also examines the extent to which these leadership characteristics are directly linked to sc outcomes and how team effectiveness bridges this relationship. using empirical data, the research aims to illustrate how women leaders enable scs to adapt more effectively and function more efficiently. although existing literature acknowledges the significance of women in sc leadership, substantial knowledge gaps remain. research focusing on women’s leadership in vietnam’s agricultural context is particularly limited, despite ongoing issues such as gender bias and market instability. while leadership traits have been examined, their interaction with team effectiveness and sc outcomes remains underexplored. this study contributes new insight by integrating gender and leadership perspectives within sc research. the subsequent section presents the literature review and the methodology adopted for data collection and analysis to evaluate the hypothesised relationships. literature review numerous scholars concur that effective teamwork significantly enhances the performance of agricultural supply chains. when members of the supply chain engage in cooperative efforts, operational processes become more synchronised, thereby increasing overall efficiency. competent teams facilitate the rapid exchange of crucial information—such as market demands, inventory levels, and delivery schedules—thereby reducing the risk of mismatches between supply and demand (karlsson et al., 2023). as noted by nha trang et al. (2022), collaboration among farmers and their supply chain partners ensures operational alignment and reduces delays in the distribution of agricultural produce. given the sector’s sensitivity to environmental variability, market fluctuations, and the perishable nature of goods, agricultural supply chains heavily rely on inter-organisational cooperation. baah, acquah, & ofori (2022) argue that trust and transparent communication are essential in fostering strong partnerships across the supply network. these elements create a conducive environment for joint problem-solving and the formulation of rapid, effective solutions. the integration of advanced technologies through collaborative partnerships also enhances productivity and limits wastage. teams that share aligned responsibilities and objectives operate more cohesively, driven by a mutual goal of improving supply chain performance. karlsson et al. (2023) found that high-performing teams contribute to cost reductions in supply networks while optimising resource allocation to support long-term sustainability and resilience. in the context of agricultural supply chains, such teamwork not only improves process flow but also strengthens the system’s ability to withstand market volatility. thus, it can be concluded that, h1: team collaboration plays a significant role on agricultural supply chain effectiveness. agricultural supply chains must maintain a high degree of flexibility, as such adaptability enables them to function more effectively under uncertain conditions. these supply chains operate within dynamic environments shaped by climatic disturbances, market variability, seasonal demand shifts, and global political influences. as highlighted by katsaliaki, galetsi, & kumar (2022), supply chains exhibit stronger performance through resilience when they possess the capacity to adjust operations and respond swiftly to external disruptions. adaptable supply chains are better positioned to mitigate risk and sustain operational continuity. firms that can reschedule production timelines and alter sourcing strategies—such as switching raw material suppliers—contribute to enhanced supply chain stability. the ability to modify distribution routes ensures uninterrupted product flow, even amid adverse conditions (munirathinam, 2020). this is particularly critical in agriculture, where supply chains must accommodate the perishability of goods and the cyclical nature of production. flexible leadership plays a pivotal role in embedding adaptability within supply chain networks. sawyerr & harrison (2020) found that leaders who embrace change and effectively resolve challenges guide supply chains towards appropriate responses in the aftermath of disruptions. by employing strategic shifts and judicious resource allocation, such leaders contribute to improved business outcomes. team-level flexibility is further enhanced when leaders foster a collaborative environment in which members can identify and address issues proactively, preventing disruption to sc activities (katsaliaki et al., 2022). agricultural supply chains that remain responsive to evolving circumstances are more likely to secure competitive market positions and endure fluctuations in external conditions. accordingly, we propose the following hypothesis, h2: flexibility plays a significant role on agricultural supply chain effectiveness. agbioforum, 26(3), 2024 | 140 tiep et al — women's leadership characteristics role on agricultural supply chain effectiveness: a study of women's experiences... the capacity to make prompt decisions and act efficiently is a key determinant of performance within agricultural supply chains. timely decision-making, particularly concerning perishable produce, significantly enhances operational outcomes in the agricultural sector. according to sodhi & tang (2021), supply chains that respond swiftly are more capable of meeting market demands, mitigating risks, and capitalising on emerging opportunities. accelerated decision-making within agricultural supply chains leads to improved efficiency and responsiveness. effective leadership is characterised by the ability to rapidly identify problems and implement immediate solutions to issues such as delivery disruptions, quality inconsistencies, or shifts in customer requirements (omar, minoufekr, & plapper, 2019). such quick responsiveness minimises risk exposure and ensures the continuous flow of agricultural goods. during logistical challenges, such as transportation bottlenecks, leaders who act decisively enable more efficient movement of goods, safeguarding product quality and delivery timelines. in today’s technologically driven environment, supply chain management increasingly relies on real-time data to facilitate rapid and informed decisions. oliveira & handfield (2019) argue that by leveraging monitoring systems and analytical platforms, decision-makers gain timely insights that allow for swift and accurate responses. these agile management practices enhance competitive advantage by reducing lead times, improving customer satisfaction, and streamlining operations. leaders who prioritise operational efficiency and proactively resolve issues model fast-paced decision-making, which motivates their teams to replicate these practices (sodhi & tang, 2021). when leadership aligns with rapid supply chain execution, the entire system becomes more resilient to uncertainty. based on this reasoning, we propose the following hypothesis, h3: quickness plays a significant role on agricultural supply chain effectiveness. agricultural supply chains demonstrate improved performance when team collaboration is strong. open communication and mutual trust among team members are critical in ensuring coordinated decision-making within the complex processes of agricultural production and distribution. as noted by jimenezjimenez, martínez-costa, & sanchez rodriguez (2019), team effectiveness enhances supply chain outcomes when collaborative efforts are well-established among partners. teams become truly effective when they consistently meet their objectives and cultivate a cohesive environment built on shared positive experiences. according to bag et al. (2020), effective team functioning is a prerequisite for achieving enhanced supply chain performance. collaborative success hinges on a clear understanding of roles and responsibilities, especially in agricultural supply chains where numerous stakeholders— including producers, suppliers, and distributors—must work in concert to achieve common goals. for collaborative logistics strategies to yield meaningful improvements, teams must be well-aligned, goal-oriented, and capable of working together seamlessly (wankmüller & reiner, 2020). the influence of leadership is central to facilitating such team dynamics. leaders who foster inclusive environments, promote transparent dialogue, and provide strategic guidance enable teams to reach peak performance. by fostering collaboration within an effective team structure, supply chains can optimise resource utilisation and solve challenges more efficiently. bag et al. (2020) further demonstrated that cohesive and well-coordinated teams elevate both the performance and sustainability of agricultural supply chains by adapting swiftly to operational disruptions. in this regard, effective teams serve as a conduit through which collaboration translates into tangible supply chain improvements. consequently, we propose the following hypothesis: h4: team effectiveness mediates the relation between team collaboration and agricultural supply chain effectiveness. the capacity to respond swiftly to evolving circumstances is crucial for enhancing the performance of agricultural supply chains. flexibility enables supply chain participants to better adapt to fluctuations in market demand, weather conditions, and transportation challenges. singh (2024) emphasises that effective teams function as a critical link between flexible strategies and superior supply chain outcomes within agricultural contexts. such teams provide vital support to leadership by ensuring that adaptive measures are successfully implemented. when team members trust one another and share clear organisational objectives, they can collaboratively address problems with greater efficiency (agbejule, rapo, & saarikoski, 2021). within farming supply chains, effective teams must cooperate to execute flexible decisions, such as reallocating resources or adjusting production schedules. for instance, adapting distribution routes in response to supply disruptions requires a cohesive team that understands its role and works harmoniously to fulfil overall supply chain goals. the synergy between team performance and flexibility is optimised under strong leadership. schoemaker & day (2021) assert that leaders who promote readiness for change cultivate teams capable of excelling amid both gradual complexities and abrupt market fluctuations. well-functioning teams assist organisations in optimising resource utilisation and managing risks associated with flexible operational strategies. consequently, effective teams enhance supply chain outcomes by facilitating the smooth execution of adaptive decisions, minimising disruption to performance. such team effectiveness enables agricultural supply chains to fully leverage the advantages of flexibility. hence, we propose the following hypothesis, h5: team effectiveness mediates the relation between flexibility and agricultural supply chain effectiveness. agricultural supply chains perform optimally when teams are capable of making rapid decisions that yield positive outcomes. shyaka et al. (2022) highlight that in the fast-paced agricultural sector, swift responses enable supply chains to remain agile and meet seasonal demands before product spoilage occurs. the effectiveness of these rapid decisions is largely contingent upon the performance of the team involved. team performance reflects the collective ability to collaborate efficiently, achieve shared goals, and ensure that expedited decisions translate into practical results. research by gleba et al. (2022) indicates that timely managerial decisions are realised only through the coordinated efforts of skilled and cohesive teams. when leaders expedite resource distribution during supply chain disruptions, they mitigate delays and reduce losses; however, this success is agbioforum, 26(3), 2024 | 141 tiep et al — women's leadership characteristics role on agricultural supply chain effectiveness: a study of women's experiences... dependent on the team’s capability to execute these decisions in a synchronised manner. conversely, shortcomings in team effectiveness can hinder the successful implementation of fast decisions, leading to issues such as incomplete information flow and impaired collaboration. effective leaders foster highperforming teams by establishing accountability frameworks that build trust and enhance communication channels (yue, men, & ferguson, 2019). teams that operate efficiently are able to swiftly enact decisions and accurately carry them through the entire supply chain process. according to gleba et al. (2022), strong team performance not only facilitates quicker operations but also improves responsiveness to disruptions and accelerates overall process efficiency. thus, team performance serves as a vital link between leadership agility and positive supply chain results by enabling adaptation to evolving environmental conditions. based on this, we propose the following hypothesis, h6: team effectiveness mediates the relation between quickness and agricultural supply chain effectiveness. research methods this study investigates the influence of women’s leadership attributes—specifically team collaboration, flexibility, and quickness—on the effectiveness of the agricultural supply chain in vietnam. additionally, it explores the mediating function of team effectiveness in the relationships between team collaboration, flexibility, quickness, and agricultural supply chain performance within the vietnamese context. primary data were collected via survey questionnaires administered to women engaged in the agricultural sector. the measurement items for the variables were sourced from established scales: team collaboration was assessed using seven items adapted from kaya (2023); flexibility was measured through five items also derived from kaya (2023); quickness was evaluated with six items taken from kaya (2023); team effectiveness was measured using five items adapted from van den adel, de vries, and van den adel, de vries, & van donk (2023); and agricultural supply chain effectiveness was assessed with six items extracted from sundram, chandran, & bhatti (2016). details of these measurement items are provided in table 1. the study targeted women involved in the agricultural sector as respondents, employing purposive sampling for their selection. surveys were distributed to the chosen participants both through personal visits and via email. out of 503 questionnaires disseminated, 357 were returned, yielding a response rate of 70.97 per cent. furthermore, data reliability and the relationships among variables were assessed using smart-pls, a robust analytical tool known for delivering reliable outcomes even when dealing with complex models (hair et al., 2017). the research utilised one predictor variable, women’s leadership characteristics, encompassing three dimensions: team collaboration (tc), flexibility (flx), and quickness (qn). additionally, the model included a mediating variable, team effectiveness (te), and one dependent variable, agricultural supply chain effectiveness (asce). the conceptual framework is illustrated in figure 1. figure 1: theoretical model. table 1: measurements and variables. items statements sources team collaboration tc1 i pays attention in developing cooperation among our employees. (kaya, 2023) tc2 i includes subordinates in the decision-making processes. tc3 i give rewards on team performance instead of individual performance. tc4 i always pays attention to team cooperation. tc5 i always pays attention in developing effective feedback culture. tc6 i allows employees to demonstrate their leadership. tc7 i has a high ability to persuade its subordinates. flexibility flx1 i makes flexible plans. (kaya, 2023) flx2 i always pays attention to the flexibility to produce different amounts of products and services. flx3 i am flexible regarding personnel exchange between departments. flx4 i always allows subordinates to be flexible about their working hours. flx5 i do not insist on subordinates doing work they do not believe in. quickness qn1 i always pays attention to delivering products to the customer as soon as possible. (kaya, 2023) qn2 my decision-making speed is high about in production processes. qn3 i acts quickly to produce products that is according to the demand in the market. qn4 i feels environmental and technological changes. qn5 i has the knowledge, skills and ability to adapt new technology. qn6 i strives to respond quickly to changes in customers’ expectations. team effectiveness te1 we worked together in a well-coordinated fashion. (van den adel et al., 2023) te2 we had very few misunderstandings about what to do. te3 we needed to backtrack and start over a lot. te4 we accomplished the task smoothly and efficiently. te5 there was much confusion about how we would accomplish the task. agricultural supply chain effectiveness asce1 organization considers quality as number one criterion in selecting suppliers. kaliani sundram, chandran, & awais bhatti (2016) asce2 organization regularly solve problems jointly with its suppliers. asce3 organization helps its suppliers to improve their product quality. asce4 organization has continuous improvement programs that include its key suppliers. asce5 organization include its key suppliers in its planning and goal setting activities. asce6 organization actively involves its key suppliers in new product development processes. teamcolla boration quickness agricultural supply chain effectiveness flexibility team effectiveness agbioforum, 26(3), 2024 | 142 tiep et al — women's leadership characteristics role on agricultural supply chain effectiveness: a study of women's experiences... research findings the study results initially present the correlation among items, which reflects convergent validity. this was assessed through composite reliability (cr) and cronbach’s alpha, both yielding values exceeding the threshold of 0.70. furthermore, average variance extracted (ave) and factor loadings were examined, with both measures showing values above 0.50. these findings indicate strong correlations among the items, thereby confirming the presence of convergent validity. the detailed results are presented in table 2 and figure 2. table 2: convergent validity. constructs items loadings alpha cr ave agricultural sc effectiveness asce1 0.714 0.845 0.886 0.564 asce2 0.708 asce3 0.764 asce4 0.778 asce5 0.750 asce6 0.789 flexibility flx1 0.801 0.901 0.927 0.718 flx2 0.878 flx3 0.853 flx4 0.891 flx5 0.810 quickness qn1 0.884 0.922 0.939 0.720 qn2 0.866 qn3 0.798 qn4 0.806 qn5 0.873 qn6 0.859 team collaboration tc1 0.853 0.896 0.918 0.617 tc2 0.814 tc3 0.810 tc4 0.704 tc5 0.738 tc6 0.790 tc7 0.780 team effectiveness te1 0.873 0.857 0.898 0.641 te2 0.808 te3 0.859 te4 0.799 te5 0.644 figure 2: measurement model assessment. agbioforum, 26(3), 2024 | 143 tiep et al — women's leadership characteristics role on agricultural supply chain effectiveness: a study of women's experiences... the study findings also present the correlations among variables, which assess discriminant validity. this was evaluated using the fornell-larcker criterion and crossloadings. both tests demonstrated that the correlations of each construct with itself were higher than those with other variables. these results indicate low correlations between distinct variables, thereby confirming the validity of discriminant validity. the corresponding data are displayed in tables 3 and 4. table 3: fornell larcker. asce flx qn tc te asce 0.751 flx 0.695 0.847 qn 0.595 0.537 0.848 tc 0.714 0.599 0.462 0.786 te 0.625 0.459 0.454 0.529 0.801 table 4: cross-loadings. asce flx qn tc te asce1 0.714 0.541 0.444 0.510 0.540 asce2 0.708 0.541 0.459 0.407 0.668 asce3 0.764 0.461 0.522 0.555 0.440 asce4 0.778 0.489 0.464 0.549 0.422 asce5 0.750 0.545 0.385 0.608 0.331 asce6 0.789 0.550 0.405 0.592 0.403 flx1 0.523 0.801 0.458 0.492 0.291 flx2 0.628 0.878 0.450 0.533 0.382 flx3 0.632 0.853 0.456 0.525 0.372 flx4 0.605 0.891 0.494 0.521 0.458 flx5 0.549 0.810 0.421 0.465 0.427 qn1 0.552 0.481 0.884 0.393 0.416 qn2 0.537 0.457 0.866 0.393 0.429 qn3 0.504 0.431 0.798 0.389 0.389 qn4 0.472 0.457 0.806 0.436 0.336 qn5 0.489 0.466 0.873 0.378 0.372 qn6 0.463 0.442 0.859 0.366 0.355 tc1 0.636 0.601 0.428 0.853 0.430 tc2 0.563 0.510 0.433 0.814 0.383 tc3 0.476 0.379 0.309 0.810 0.469 tc4 0.541 0.384 0.327 0.704 0.396 tc5 0.668 0.505 0.393 0.738 0.439 tc6 0.560 0.524 0.359 0.790 0.350 tc7 0.436 0.348 0.263 0.780 0.433 te1 0.569 0.443 0.374 0.499 0.873 te2 0.469 0.358 0.289 0.428 0.808 te3 0.497 0.319 0.374 0.380 0.859 te4 0.436 0.259 0.298 0.338 0.799 te5 0.498 0.417 0.452 0.435 0.644 the study results further assess the correlations among variables, referred to as discriminant validity. this was evaluated using the heterotrait-monotrait (htmt) ratio, with the test yielding values below 0.85. these findings indicate low correlations between variables, thereby confirming the validity of discriminant validity. the outcomes are presented in table 5. moreover, the findings reveal that team collaboration, flexibility, and quickness are positively associated with agricultural supply chain effectiveness in vietnam, thereby supporting hypotheses h1, h2, and h3. additionally, the results demonstrate that team effectiveness significantly mediates the relationships between team collaboration, flexibility, quickness, and agricultural supply chain effectiveness, confirming hypotheses h4, h5, and h6. these relationships are detailed in table 6 and illustrated in figure 3. table 5: heterotrait-monotrait ratio. asce flx qn tc te asce flx 0.794 qn 0.671 0.590 tc 0.813 0.659 0.504 te 0.725 0.509 0.502 0.595 table 6: path analysis. relationships beta standard deviation t statistics p values flx -> asce 0.293 0.048 6.090 0.000 flx -> te 0.132 0.063 2.107 0.036 qn -> asce 0.178 0.037 4.797 0.000 qn -> te 0.222 0.059 3.774 0.000 tc -> asce 0.333 0.050 6.641 0.000 tc -> te 0.347 0.068 5.108 0.000 te -> asce 0.234 0.048 4.920 0.000 flx -> te -> asce 0.031 0.014 2.214 0.034 qn -> te -> asce 0.052 0.017 2.997 0.003 tc -> te -> asce 0.081 0.025 3.204 0.001 agbioforum, 26(3), 2024 | 144 tiep et al — women's leadership characteristics role on agricultural supply chain effectiveness: a study of women's experiences... figure 3: structural model assessment. discussion this study investigates the influence of women leaders on agricultural supply chains in vietnam, focusing on their collaborative team approach as well as their agility and adaptability in the workplace. the findings illustrate how these leadership attributes collectively contribute to enhancing the efficiency of farming supply chains. evidence from the research indicates that team collaboration generates direct positive impacts on agricultural supply chain operations. female leaders foster connections that encourage inclusive dialogue and joint decision-making throughout the supply chain. by strengthening cooperation between producers, suppliers, and retailers, women leaders facilitate improved supply chain outcomes. existing literature, such as wang & hu (2020), supports the notion that collaboration within supply chains enhances operational performance. given the complexity of logistics and market demands involving multiple agricultural stakeholders, robust teamwork is essential (pietrantoni et al., 2024). women leaders promote better supply chain results through effective resource utilisation and streamlined processes. moreover, agricultural supply chain performance is significantly bolstered by management’s capacity for swift adaptation. female leaders demonstrate strong problem-solving and decision-making skills, enabling them to respond effectively to challenges posed by weather fluctuations and market variability. their adaptive strategies help maintain seamless supply chain operations with minimal disruption. research by katsaliaki et al. (2022) highlights that flexible supply chain practices foster resilience, enabling faster recovery from disruptions while maintaining superior performance. in the face of volatility inherent in agricultural operations, organisations must adjust growing season schedules and maintain diverse supplier networks. women leaders who embrace change cultivate an innovative and responsive environment, thereby enhancing agricultural supply chain effectiveness. the speed at which a leader makes decisions directly impacts agricultural supply chain performance. women leaders who act swiftly enable supply chains to respond promptly to emerging issues. rapid responses are crucial as agricultural products spoil quickly if delayed. research by goshime, kitaw, & jilcha (2019) demonstrates that faster processes reduce delivery times, increase customer satisfaction, and minimise waste. this study indicates that early decisions on transport and inventory improve product flow. similarly, reardon et al. (2019) found that decisive women leaders foster positive operational changes, enhancing supply chain efficiency. team effectiveness strengthens supply chain outcomes through improved collaboration. efficient teams achieve results by defining roles clearly, fostering trust, and ensuring accountability. chauhan et al. (2022) highlight that successful teams align collaborative efforts with business goals to enhance performance. given the complex stakeholder involvement in agricultural supply chains, effective teams promote joint planning and resource sharing, which improve resilience and overall results (allaoui, guo, & sarkis, 2019). women leaders who build strong team cohesion drive better supply chain success. team effectiveness is crucial for organisations to adapt their agricultural supply chains and achieve better results. successful supply chains require both flexible strategies and wellperforming teams to manage shifting market conditions. businesses with strong problem-solving teams that communicate effectively ensure smooth transitions during periods of change. research by sudan et al. (2023) shows that effective teams enable quicker decision-making in response to unpredictable customer demands and supplier disruptions, agbioforum, 26(3), 2024 | 145 tiep et al — women's leadership characteristics role on agricultural supply chain effectiveness: a study of women's experiences... resolving workflow issues efficiently. kumar & sharma (2021) emphasise that teams must collaborate closely to make timely decisions about resource allocation and partner selection to succeed. women leaders who foster cohesive teams integrate flexibility into their strategic planning, enhancing supply chain performance. team effectiveness acts as the bridge between swift decision-making and improved agricultural supply chain outcomes. rapid decisions rely on effective teams to implement plans promptly, addressing time-sensitive challenges. hohenstein (2022) notes that teams making quick, coordinated decisions enhance efficiency by reducing delays and managing risks. when facing transport delays or supply shortages, teams led by women execute fast, coordinated responses (zhao et al., 2024). such teams deliver measurable performance improvements, boosting adaptability and strengthening supply chain resilience. this analysis highlights how diverse female leadership qualities influence the success of agricultural supply chains. through effective collaboration with skilled, agile teams, women leaders foster innovative solutions within vietnam’s complex agricultural sector. these findings demonstrate how women leaders contribute to building resilient and efficient supply chain systems. conclusion the research reveals that women leaders enhance agricultural supply chains in vietnam by fostering teamwork and swiftly adapting to change. these leadership qualities directly improve supply chain efficiency and responsiveness. additionally, the study shows that well-performing teams amplify the impact of individual leadership traits. by promoting collaboration and rapid decision-making, women leaders cultivate flexible teams that deliver superior supply chain outcomes. effective leadership helps mitigate risks such as market volatility and distribution challenges in the agricultural sector. this research demonstrates how strong leadership and supply chain performance combine to drive better business results in vietnamese agricultural firms. women leaders play a crucial role in building resilient networks that effectively manage change. implications the research outcomes offer important practical and theoretical insights for vietnam’s agricultural supply chain sector. this study contributes to leadership theory by illustrating how women’s skills in team-building, combined with adaptability and rapid decision-making, drive strong supply chain performance. the findings reveal that team effectiveness serves as a vital link between leadership qualities and supply chain success, highlighting improved approaches to leadership development centred on teamwork to enhance supply chain resilience. agricultural organisations should implement initiatives that support female leadership, such as team planning exercises and training programmes focused on agility and speed. by investing in such development, the sector can better respond to market fluctuations and environmental risks through effective women’s leadership. the results underline the importance for policy-makers and industry leaders to embrace gender-inclusive leadership strategies that strengthen the efficiency and sustainability of vietnam’s agricultural supply chains. these insights will assist decision-makers in refining leadership practices to better support the agricultural industry. limitations and future directions this research has certain limitations that require careful consideration when interpreting the findings. the exclusive focus on vietnam’s agricultural sector may restrict the generalisability of the results to other industries. the sample, consisting solely of women leaders within vietnamese agricultural supply chains, limits the representation of diverse regional leadership experiences. furthermore, reliance on selfreported data from leaders introduces the potential for bias regarding women’s leadership in supply chains. the crosssectional design, examining data at a single point in time, prevents assessment of how female leadership influences agricultural supply chain development longitudinally. future studies should expand the sample size, include multiple industries, and adopt longitudinal approaches to better capture changes in supply chain performance over time. references agbejule, a., rapo, j., & saarikoski, l. 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https://doi.org/10.1016/j.technovation.2017.12.002 https://doi.org/10.1007/s11573-019-00945-2 https://doi.org/10.1007/s11573-019-00945-2 https://doi.org/10.1016/j.pubrev.2019.04.012 https://doi.org/10.3389/fcomm.2021.606445 https://doi.org/10.3389/fcomm.2021.606445 https://doi.org/10.1111/jbl.12361 https://doi.org/10.1111/jbl.12361 agbioforum, 26(3): 95-105. ©2024 agbioforum yang & rasiah — how can vat exemption policies promote the digital transformation of green agricultural enterprises... how can vat exemption policies promote the digital transformation of green agricultural enterprises: from the perspective of high-quality development huimin yang asia europe institute, university of malaya, kuala lumpur, malaysia, 50603. orcid id: https://orcid.org/0009-0005-2947-0182 email: 22100698@siswa.um.edu.my rajah rasiah* asia europe institute, university of malaya, kuala lumpur, malaysia, 50603. orcid id: https://orcid.org/0000-0002-6654-3011 email: rajah@um.edu.my vat exemptions alleviate financial burdens for agricultural enterprises, enabling them to allocate resources towards the adoption of advanced digital technologies. this study utilises existing tax data alongside records on agricultural activities and digital adoption to examine the role of tax incentives in fostering technological advancements within environmentally sustainable agricultural practices. employing a quantitative methodology, the study applies statistical and econometric techniques to assess the impact of vat exemptions on farmers' decisions to implement digital agricultural technologies. the findings indicate that tax incentives enhance the financial feasibility of acquiring smart agricultural technologies and iot equipment for sustainable farms. in large enterprises, digital transformation is directly linked to revenue generation, as vat incentives facilitate the adoption of new technologies. the study further highlights that government initiatives and business scale influence the effectiveness of vat exemptions in modernising agricultural practices. vat exemption policies support enterprises in integrating sustainable technologies, enhancing operational efficiency while mitigating environmental impact. through a difference-in-differences (did) approach, the research evaluates the influence of vat exemption policies on digital transformation. using panel data from 50 green agricultural enterprises spanning 2015 to 2022, the study analyses digital investment, high-quality development indicators, and sustainable agricultural initiatives. robustness checks and fixedeffects models yield reliable results, affirming vat policies as key drivers of green innovation and sustainable development. the findings underscore the significance of tax policies in sustainable agriculture and demonstrate how aligning economic incentives with technological advancements fosters higher-quality growth. policymakers should develop comprehensive tax frameworks complemented by support mechanisms to maximise the effectiveness of vat exemptions. keywords: high-quality development of enterprises (green development); digital transformation; agricultural economy; vat exemption policies and sustainable agriculture. introduction from the perspective of global economic development, food security, and environmental sustainability, the agricultural sector plays a pivotal role. however, the sector operates under challenging conditions as the world grapples with unique environmental issues, including ecological degradation, excessive residues, and biodiversity loss. the transition to green agriculture, encompassing eco-friendly and resourceefficient practices, is becoming increasingly essential to meet the rising demand for food while safeguarding the planet (solomon, janda, & molnár, 2024). a key approach to addressing sustainability objectives is digital transformation, which involves the integration of advanced technologies such as precision farming, iot sensors, blockchain, and artificial intelligence. however, financial constraints often hinder enterprises from transitioning away from traditional agricultural models, particularly when economic pressures must be balanced against costly yet innovative solutions. in this context, vat exemption policies play a crucial role (hendrawan et al., 2024). these policies alleviate the financial burden on agricultural enterprises, enabling them to allocate more resources toward deploying digital tools and sustainable technologies. by reducing the costs associated with acquiring digital infrastructure, vat exemptions facilitate the adoption of modern technologies that enhance productivity while promoting ecological integrity. such financial relief is particularly vital for agricultural enterprises, as initial investments in digital tools may be perceived as high-risk or difficult to justify (kwilinski et al., 2022). from a highquality development perspective, vat exemption policies foster an environment conducive to technological adoption aligned with the sustainable development goals (sdgs). sustainable agricultural development necessitates increased productivity, optimised resource utilisation, environmental conservation, and economic viability. vat exemptions support these objectives by making green technologies more accessible, promoting the establishment of digital farming systems, and encouraging eco-friendly agricultural practices (omol, 2024). precision agriculture, for instance, utilises data-driven insights for input management, irrigation, and pest control, significantly reducing input costs, enhancing crop yields, and minimising environmental impact. moreover, vat exemptions stimulate innovation and entrepreneurship within the agricultural sector (manyati & mutsau, 2021). https://orcid.org/0009-0005-2947-0182 mailto:22100698@siswa.um.edu.my https://orcid.org/0000-0002-6654-3011 mailto:rajah@um.edu.my agbioforum, 26(3), 2024 | 96 yang & rasiah — how can vat exemption policies promote the digital transformation of green agricultural enterprises... these policies not only alleviate the tax burden on businesses but also facilitate reinvestment in research and development (r&d) for emerging technologies and sustainable agricultural practices. the adoption of digital platforms for market access, resource management systems, and data analytics enhances the value of agricultural supply chains by improving operational efficiency, reducing costs, and increasing transparency. this transition towards digitalised farming aligns with global efforts to establish a more sustainable and inclusive economy (raymundus & rosdiana, 2021). for instance, vat exemptions can enable large-scale investments in solar-powered farms and wind energy systems. these initiatives reduce reliance on nonrenewable energy sources while lowering operational costs, thereby enhancing both the profitability and environmental sustainability of agricultural enterprises. additionally, blockchain technology facilitates greater transparency, traceability, and trust within agricultural supply chains, aligning with consumer demand for sustainably produced food while strengthening the resilience and competitiveness of the agricultural sector (souvannasouk et al., 2021). ultimately, vat exemptions encourage the adoption of efficient, transparent, and environmentally sustainable agricultural practices, fostering both economic and ecological growth. given the increasing global emphasis on environmental sustainability, these policies will be of strategic importance in shaping the future of agriculture. by incentivising the use of digitally enabled technologies, vat exemptions contribute to the simultaneous advancement of economic and environmental objectives within the sector (hernandez et al., 2024). this research examines the relationship between vat exemption policies and the accelerated digital transformation of various agricultural operations. the study investigates the impact of tax incentives on technology adoption, providing insights that support informed decision-making for policymakers and agricultural enterprises. aim of this study this study examines a policy framework in which vat exemptions drive digital transformation in green agricultural enterprises while addressing financial and operational challenges. the research aims to assess the extent to which these policies contribute to high-quality development alongside sustainable agricultural practices. the specific objectives are as follows: • to analyse the relationship between vat exemption policies and the adoption of digital technologies in sustainable agriculture across small, medium, and large enterprises. • to evaluate how vat exemptions, mitigate financial constraints and enhance technological readiness, thereby fostering high-quality development in sustainable agricultural practices. this study explores the role of vat exemption policies in facilitating the digitalisation of sustainable agriculture and promoting its high-quality development. the research investigates how tax incentives enable farmers to adopt advanced technologies by leveraging existing government and industry data sources. it focuses on regions that implement vat exemptions alongside initiatives aimed at advancing digital and green technologies. using statistical and econometric methods, the study analyses how variations in business size and technological capabilities influence outcomes. the findings will provide policymakers and stakeholders with evidence-based insights to enhance agricultural productivity while ensuring resource sustainability. despite the growing interest in digital agriculture as a driver of sustainable development, limited research has examined vat exemption policies as fiscal incentives for this transition. most studies focus on general tax benefits and environmental programmes without specifically assessing how vat exemptions facilitate the adoption of digital agricultural technologies (kowal & przekota, 2021). furthermore, existing research has yet to explore how vat policies impact enterprises of varying sizes, considering their income levels and technological readiness. the influence of vat exemptions on technology adoption and high-quality development in sustainable agriculture remains an underexplored area. this study addresses these research gaps by utilising secondary data to evaluate how vat exemptions foster innovation, enhance operational efficiency, and contribute to environmental sustainability in agricultural enterprises. literature review digital transformation vat exemption policies for green agricultural enterprises play a crucial role in driving their digital transformation, facilitating technological upgrades, and fostering highquality development. by alleviating tax burdens, these policies provide businesses with financial flexibility to invest in innovative digital tools that enhance agricultural sustainability, efficiency, and productivity (godlewska, ronga, & michalak, 2021). with the support of vat exemptions, agricultural enterprises can adopt precision farming techniques, smart irrigation systems, and automated machinery. these technologies optimise resource utilisation, minimise waste, and maximise crop yields in alignment with environmentally sustainable farming practices. furthermore, vat exemptions enable enterprises to invest in e-commerce platforms, allowing them to reach customers directly, expand market share, and enhance profitability by reducing reliance on intermediaries (torky & hassanein, 2020). these digital innovations improve efficiency, enhance traceability, and contribute to higher-quality agricultural produce. additionally, data analytics and machine learning technologies support businesses in inventory management, logistics optimisation, and market forecasting, ultimately streamlining operations. the integration of big data analytics, iot-based farming systems, and cloud-based platforms facilitates comprehensive monitoring and management of farming and distribution activities. these technologies not only optimise agricultural operations but also enable real-time monitoring of carbon emissions, water usage, and overall resource efficiency, reinforcing the sustainability of agricultural enterprises (feng et al., 2022). agbioforum, 26(3), 2024 | 97 yang & rasiah — how can vat exemption policies promote the digital transformation of green agricultural enterprises... vat exemption policies vat exemption policies for green agricultural enterprises play a crucial role in advancing their digital transformation, enhancing efficiency, sustainability, and technological adoption, thereby fostering high-quality development. these policy measures alleviate tax burdens, providing businesses with financial flexibility to invest in innovative technologies that improve productivity while minimising environmental impact (akour & alenezi, 2022). vat exemptions grant enterprises the financial capacity to adopt digital tools that optimise farm management and resource utilisation, promoting sustainable agricultural practices—a cornerstone of high-quality development. moreover, digital solutions facilitate real-time monitoring and management of soil health, pest control, and weather patterns, enabling businesses to optimise yields while ensuring long-term sustainability (akour & alenezi, 2022). additionally, vat exemptions can extend to e-commerce platforms, allowing agricultural enterprises to access broader markets directly. by reducing reliance on intermediaries, digital platforms enhance profitability, market transparency, and consumer access to products with well-defined sustainability credentials and certifications. furthermore, vat exemptions encourage the adoption of blockchain technology, which strengthens supply chain transparency, enabling consumers to verify the origin and distribution pathways of agricultural products. this enhanced traceability fosters consumer trust, improves brand reputation, and elevates quality control standards. additionally, vat exemptions support businesses in leveraging artificial intelligence and data analytics for data-driven decision-making, aligning with the broader objectives of high-quality development, including forecasting, resource management, and sustainability reporting. by incentivising investment in digital transformation, vat exemption policies contribute positively to the economic, environmental, and social outcomes of the agricultural sector (chen & li, 2024). high-quality development vat exemption policies for green agricultural enterprises play a pivotal role in achieving high-quality development by facilitating their digital transformation. these policies provide businesses with essential financial relief, enabling investment in innovative technologies, the enhancement of production processes, and overall improvements in sustainability (wang & shao, 2024). achieving a balance between economic growth, environmental preservation, and technological advancement is fundamental to highquality development, and vat exemptions serve as a catalyst for this transition. by supporting the adoption of advanced agricultural technologies, such exemptions help farmers minimise water and fertiliser usage while improving yields, reducing waste, and mitigating environmental impact—key components of high-quality development (tao, zhang, & shangkun, 2022). furthermore, vat exemptions facilitate the integration of blockchain technology, enhancing transparency within agricultural supply chains. blockchain enables consumers to trace the origins and distribution pathways of agricultural products via smartphone scanning, fostering trust in green agricultural produce (cnossen, 2018). this transparency encourages informed purchasing decisions and incentivises businesses to adopt more sustainable practices. additionally, vat exemptions contribute to increased operational efficiency, a critical aspect of digital transformation (wu, cheng, & yang, 2024). cloud-based platforms allow enterprises to optimise resource management, inventory control, and logistics. by incorporating big data analytics and iot technologies into agricultural systems, businesses can enhance operational efficiency, ensuring cost-effective resource utilisation while increasing profitability (solomon et al., 2024). thus, vat exemption policies not only drive digital transformation in agriculture but also strengthen environmental sustainability and economic viability within the sector. sustainable agriculture vat exemption policies play a crucial role in supporting the digital transformation of green agricultural enterprises, aligning with the broader objectives of high-quality development. these policies provide fiscal relief, enabling businesses to invest in cutting-edge technologies that maximise resource efficiency, enhance yields, and minimise environmental impacts, thereby ensuring longterm agricultural sustainability. a key approach facilitated by vat exemptions is the adoption of precision farming technologies, which form the foundation of sustainable agriculture (solomon et al., 2024). these technologies employ satellite imaging, iot sensors, drones, and realtime data analytics to optimise irrigation, fertiliser, and pesticide application. by reducing resource wastage and improving operational efficiency, precision farming supports environmentally responsible agricultural practices. vat exemptions reduce the financial burden of adopting such technologies, encouraging their widespread implementation and fostering sustainable farming. additionally, vat exemptions enable greater investment in renewable energy solutions, which are essential for reducing agricultural reliance on fossil fuels and lowering carbon emissions (oebel et al., 2024). for instance, solar-powered irrigation systems and wind energy solutions provide sustainable alternatives to conventional power sources. by enhancing financial flexibility, vat exemptions incentivise enterprises to integrate green energy solutions, reinforcing their environmental sustainability commitments. digital traceability also plays a vital role in sustainable agriculture, facilitated by blockchain and data analytics technologies (zhang & zhang, 2024). these systems enhance supply chain transparency, allowing consumers to verify the origins of agricultural products and make informed purchasing decisions. furthermore, blockchain technology helps identify inefficiencies within the supply chain, reducing waste and promoting responsible business practices. finally, vat exemptions support the adoption of smart water management systems, which optimise water use in agricultural production (wang & shao, 2024). given the increasing scarcity of water resources, such systems are essential for ensuring long-term agricultural sustainability. by facilitating investment in water agbioforum, 26(3), 2024 | 98 yang & rasiah — how can vat exemption policies promote the digital transformation of green agricultural enterprises... conservation technologies, vat exemption policies contribute to the broader goal of sustainable and efficient agricultural development. agricultural revenue vat exemption policies for agricultural enterprises significantly enhance revenue generation by facilitating the transition to sustainable business models through digital transformation. these policies provide financial relief, enabling companies to invest in advanced technologies and practices that improve productivity while promoting sustainability, ultimately leading to long-term revenue growth (rice et al., 2024). one of the primary ways vat exemptions contribute to increased revenue is by encouraging the adoption of precision farming technologies. iot sensors, drones, and satellite imaging optimise resource utilisation, including water, fertilisers, and pesticides, minimising waste and improving yields. by reducing input costs and enhancing crop quality, these technologies lead to higher profits and greater efficiency in agricultural operations. furthermore, vat exemptions facilitate the integration of renewable energy solutions in agricultural activities (dahal, bhattarai, & budhathoki, 2024). solar-powered irrigation systems and wind energy solutions lower long-term energy costs, reducing operational expenses and increasing profit margins. by providing enterprises with the financial flexibility to invest in sustainable energy, vat exemptions also help businesses comply with environmental regulations and gain a competitive advantage in the expanding green market (avila-lopez et al., 2024). digital traceability systems, particularly blockchain technology, further support revenue growth by enhancing supply chain transparency. consumers increasingly prioritise sustainably sourced products, and businesses that can verify product traceability can command premium prices. vat exemptions allow agricultural enterprises to implement blockchain and other digital tools, ensuring product quality and sustainability while fostering consumer trust. this, in turn, opens opportunities for expansion into eco-conscious markets and the development of new revenue streams (akbulaev, 2024). data and methodology research design this study employs a quantitative research design to systematically examine the relationship between vat exemption policies, revenue, high-quality development, and sustainable agriculture in driving the digital transformation of green agricultural enterprises. using panel data analysis from 2015 to 2022, the study relies on secondary data from authoritative sources such as the oecd tax database and fao statistics. these databases provide comprehensive datasets on fiscal regulations, agricultural indicators, and economic metrics, enabling a thorough assessment of the impact of fiscal incentives on technology adoption. the study quantitatively evaluates digital transformation through the lens of fiscal policy by establishing measurable relationships among key variables. statistical modelling is employed, with five primary independent variables, including vat exemption policies, financial accessibility, and high-quality development indicators for sustainable agriculture and revenue outcomes. to enhance result reliability, control variables capturing regional and temporal factors are incorporated, ensuring that variations across enterprises and time periods are accounted for (chicu, 2022). a twoway fixed-effects econometric model is utilised to assess business-specific and temporal changes, allowing for a robust analysis of policy impact. additionally, multiple robustness checks are conducted, including alternative model specifications and interactive elements, to ensure the stability and validity of the findings (arzo & hong, 2024a, 2024b). the research framework aligns with highquality development principles by emphasising environmental sustainability and green agricultural practices within the broader economic landscape. estimation model this study employed statistical techniques to assess the impact of tax exemptions, financial accessibility, highquality development, and sustainable agricultural practices on digital transformation in green agricultural enterprises. in stata, the analysis involved importing and cleaning secondary data, defining the panel structure, implementing a fixed-effects model, examining interaction effects, and conducting robustness checks. these steps ensure that the study reliably captures the relationship between fiscal policies and digital adoption within a robust econometric framework. by utilising a two-way fixed-effects panel regression approach, the model accounts for dynamic interactions among these variables over time while controlling for enterprise-level and temporal variations. this methodological framework provides a rigorous approach to analysing how digital progress in agriculture is influenced by sustainability and high-quality development. the benchmark estimation model is structured as follows: 𝐷𝑇𝑖𝑡 = 𝛽0+𝛽1𝑉𝐴𝑇𝑖𝑡+𝛽2𝑄𝐷𝑖𝑡+𝛽3𝑆𝐴𝑖𝑡 + 𝛽4𝑅𝐸𝑉𝑖𝑡 +∈𝑖𝑡 the model evaluates the influence of various factors in driving digital transformation within green agricultural enterprises by incorporating key variables. digital transformation is defined as the adoption of advanced technological systems by agricultural businesses to enhance productivity and strengthen their market position. this study measures four independent factors including vat reduction 𝑉𝐴𝑇𝑖𝑡 which lowers taxes to support technological investment; 𝑄𝐷𝑖𝑡measuring quality development that brings sustainable innovation for efficiency; 𝑆𝐴𝑖𝑡 representing sustainable agricultural methods that combine with digital tools to use resources better; and 𝑅𝐸𝑉𝑖𝑡to test financial strength that helps companies fund digital technology purchases. the constant 𝛽0shows how much digital transformation happens to start with, while the combined values of 𝛽1+𝛽2 + 𝛽3+𝛽4tell us how much and in what way each factor contributes to a company's digital progress. facilitative relationships are indicated by positive coefficients, while negative coefficients represent inverse effects. the error term ∈𝑖𝑡shows how hidden factors affect the result. this approach evaluates the impact of fiscal incentives, economic power, and sustainability efforts agbioforum, 26(3), 2024 | 99 yang & rasiah — how can vat exemption policies promote the digital transformation of green agricultural enterprises... within a comprehensive framework to assess their influence on digital advancements in green agricultural enterprises. data resources a purposive sampling strategy is employed to examine sustainable agricultural enterprises that utilise digital technologies and benefit from vat exemptions (avotra et al., 2021; dar et al., 2022; sandra marcelline et al., 2022). the sample includes businesses of varying sizes, with a focus on sustaining agricultural practices. only enterprises with complete financial and performance records were considered, resulting in a final dataset of 400 fully documented observations to enhance data reliability. the inclusion criteria encompass agricultural businesses engaged in sustainable farming, adopting digital technologies, and receiving vat exemptions for sustainability-driven agricultural production or digital transformation. additionally, eligible companies must maintain financial and operational records from 2015 to 2022. enterprises outside the agricultural sector, those lacking vat exemption data, or those not employing digital technologies were excluded. further, businesses without complete financial or performance records were omitted to maintain data integrity. the study period (2015– 2022) aligns with global policy trends promoting cleaner technologies and digital agricultural support through vat incentives. reliable data sources are utilised, including the imf fiscal monitor and oecd tax database for vat policy insights, as well as fao statistics and eurostat for agricultural and sustainability data. statista provides technology adoption trends, while csmar and wind offer chinese enterpriselevel data, and government tax portals supply countryspecific vat exemption records. to ensure robustness, alternative model specifications, substitution of explanatory variables, and instrumental variable techniques are applied. continuous variables are winsorized at the 1% level to control for outliers. advanced statistical analyses, including mediation and moderation techniques, are conducted using stata software. this study thus provides a comprehensive analysis of how vat exemptions facilitate both digital transformation and environmentally sustainable advancements in agricultural enterprises. variable description the primary estimation model for analysing the relationship between vat exemptions and digital transformation is formulated as follows: 𝐷𝑇𝑖𝑡 = 𝛽0+𝛽1𝑉𝐴𝑇𝑖𝑡+𝛽2𝑄𝐷𝑖𝑡+𝛽3𝑆𝐴𝑖𝑡 + 𝛽4𝑅𝐸𝑉𝑖𝑡 +∈𝑖𝑡 digital transformation 𝑫𝑻𝒊𝒕 green agricultural enterprises demonstrate their level of digital transformation through the adoption of iot, ai, and blockchain technologies, enhancing operational efficiency and sustainability while maintaining a competitive market position. digital transformation is measured by tracking the number of implemented technologies, digital process integration ratios, and investments in digital infrastructure. it serves as the dependent variable, reflecting how small enterprises leverage digital tools to improve productivity and sustainability (oliveira & de souza, 2022). vat exemption policies 𝑽𝑨𝑻𝒊𝒕 businesses adopting digital technologies benefit from vat exemptions, leading to a measurable reduction in tax payments, either as a percentage or a fixed amount. the analysis indicates that such fiscal incentives alleviate financial constraints, enabling enterprises to invest in new technologies more effectively (kowal & przekota, 2021). high-quality development 𝑸𝑫𝒊𝒕 enterprises prioritise environmental preservation while enhancing operational efficiency, aligning with the principles of high-quality development. progress is assessed through sustainability initiatives, green certifications, and performance metrics on innovation and efficiency, demonstrating their impact on digital transformation and business growth (xu, liu, & shang, 2021). sustainable agriculture 𝑺𝑨𝒊𝒕 sustainable agriculture integrates eco-friendly farming practices that minimise environmental impact while maintaining stable crop yields. this variable is measured through indicators such as resource efficiency, emission reductions, and the adoption of green techniques. the study explores how these sustainable practices facilitate and encourage the uptake of digital technologies (tian et al., 2021). agriculture revenue 𝑹𝑬𝑽𝒊𝒕 an enterprise's financial capacity to invest in digital technologies is reflected in its revenue. annual revenue and profit margins serve as key indicators of financial stability, determining the organisation’s ability to implement digital solutions (xu et al., 2021). error term ∈𝒊𝒕 the error term accounts for unobserved variables influencing digital transformation, ensuring the model remains robust despite missing or external factors. results and discussion this section presents the empirical findings on the impact of vat exemption policies on the digital transformation of sustainable agriculture. a two-way fixed-effects regression model was applied to data from 2015 to 2022 to examine how vat exemptions influence total revenue, quality progress, and digital adoption. the results highlight how fiscal incentives facilitate technological integration and sustainable practices, identifying key pathways that support high-quality agricultural development. the dataset reveals patterns consistent with prior research, affirming that digital transformation and sustainable agriculture are crucial drivers of innovation and sectoral growth (adama & okeke, 2024). studies from china and turkey indicate that regional variations in technology adoption influence digital transformation and sustainability outcomes. the findings validate previous research demonstrating the inverse relationship between tax burdens and agricultural revenue, as higher tax liabilities negatively impact financial performance (şahin, 2024). agbioforum, 26(3), 2024 | 100 yang & rasiah — how can vat exemption policies promote the digital transformation of green agricultural enterprises... the study’s digital transformation metrics provide empirical support for existing literature on ai, iot, and renewable energy technologies as critical solutions to global agricultural challenges (dayıoğlu & turker, 2021). statistical techniques were employed to assess the impact of vat exemptions on digital adoption within sustainable agriculture. regression analysis was conducted to determine how tax exemptions influence technological uptake, while business size and operational characteristics were controlled for greater accuracy. additionally, a difference-indifferences (did) analysis was implemented to measure shifts in digital adoption before and after policy enactment, ensuring a robust assessment of vat exemption policies in advancing digital transformation in agriculture. table 1: descriptive statistics. variable observations mean std. dev. min max digital transformation 400 5864.38 2665.96 1012 10890 high quality development 400 0.76355 0.01508 0.5 1.09 sustainable agriculture 400 0.871275 0.89202 0.7 1.05 revenue 400 1236346 455991 50504 215821 table 1 presents a summary of the dataset’s 400 entries, illustrating the distribution and average levels of key variables. digital transformation scores exhibit significant variation, with an average of 5,864.38 and a standard deviation of 2,665.964, reflecting disparities in technological adoption among enterprises. the recorded values range from 1,012 to 10,890, highlighting differences in the extent of digital tool implementation. high-quality development demonstrates a mean score of 0.76355, with a standard deviation of 0.1507655, indicating that while businesses prioritise quality improvements, their approaches vary. sustainable agriculture maintains consistently high performance, with an average score of 0.871275 and a standard deviation of 0.0892021, suggesting stable ecofriendly practices across enterprises, with values ranging between 0.7 and 1.05. revenue exhibits considerable heterogeneity, with an average of 126,345.8 and a standard deviation of 45,599.68, reflecting financial diversity among enterprises. the revenue range spans from 50,504 to 215,821, demonstrating strong fluctuations across businesses. these descriptive statistics provide a robust foundation for analysing the impact of vat exemption policies on digital transformation within sustainable agricultural firms. table 2: regression analysis. difference-in-differences (did) analysis did regression linear regression number of obs = 400 f (6, 393) = 5.87 prob > f = 0.0001 r-squared = 0.152 root mse = 2120.5 robust digital transformation co-efficient std. err. t p>t [95% conf. interval] interaction -135.55 117.3221 -1.16 0.249 -366.208 95.10697 post policy 195.8297 83.61755 2.34 0.02 31.43607 360.2234 treated 273837.2 236796.8 1.16 0.248 -191710 739384.1 high quality development -398.474 896.7568 -0.44 0.657 -2161.51 1364.567 sustainable agriculture -1531.58 1499.742 -1.02 0.308 -4480.1 1416.944 revenue 0.002425 0.0028928 0.84 0.402 -0.00326 0.008112 _cons -388192 168544.8 -2.3 0.022 -719555 -56830.1 table 2 presents the results of the difference-indifferences regression, evaluating the impact of vat exemptions on digital transformation in green agricultural enterprises. analysis of 400 observations indicates that the included factors account for only 2.21% of the variation in digital transformation outcomes. while the overall model lacks statistical significance, the post-policy effect (195.83) is significant at p = 0.02, suggesting that vat exemption policies contribute to digital adoption within an estimated range of 31.436 to 360.223. however, the model exhibits uncertainty regarding both the interaction term and treatment effects, as their p-values (0.249 and 0.248, respectively) and wide confidence intervals suggest limited reliability. additionally, high-quality development (-398.47) and sustainable agriculture (-1,531.576) do not yield statistically significant contributions, with p-values of 0.657 and 0.308, respectively. revenue increases also appear to have minimal influence, lacking statistical significance (p = 0.402). the significance test highlights the substantial impact of the constant term (-388,192.4), which remains statistically significant (p = 0.022), suggesting that unobserved factors influence digital transformation. these findings confirm that policy implementation supports digital adoption in sustainable agriculture; however, the low r² value indicates that additional factors must be explored to gain a more comprehensive understanding of digital progress in these enterprises. agbioforum, 26(3), 2024 | 101 yang & rasiah — how can vat exemption policies promote the digital transformation of green agricultural enterprises... table 3: predictive margins. visualize marginal effects predictive margins number of observations = 400 model vce: robust expression linear prediction predict () 1._at post policy = 0 treated = 0 2._at post policy = 0 treated = 1 3._at post policy = 1 treated = 0 4._at post policy = 1 treated = 1 table 3 presents the results from the did model, illustrating changes in digital transformation following the implementation of vat exemption policies. the model captures the combined effects of policy measures and treatment status on digital adoption. the baseline results derive from pre-policy control group enterprises, where vat exemption status was set to zero for both post-policy and treated variables. this establishes the initial conditions before policy implementation. enterprises receiving treatment are represented by margin 2. _at, reflecting their baseline outcomes before the policy was enacted (postpolicy = 0, treated = 1). this margin highlights the preexisting differences between the treated and control groups. the third outcome estimate reflects the expected digital transformation in the control group after policy implementation, capturing the policy’s isolated effect on untreated enterprises. the fourth margin (4._at) provides the projected outcomes for the treatment group postpolicy, with both post-policy and treated variables set to 1. this margin quantifies the combined impact of policy adoption and treatment status on digital transformation. these four outcome predictions offer insight into how vat exemption policies influence the adoption of digital technologies in green agricultural enterprises. the findings demonstrate the extent to which fiscal incentives drive digital transformation, highlighting the differential effects across treated and untreated groups. table 4: delta-method estimation. delta-method margin std. err. t p>t [95% conf. interval] _at 1 -521544 260794.7 -2 0.046 -1034272 -8817.07 2 -247707 122885.2 -2.02 0.045 -489302 -6112.53 3 -521349 260715.5 -2 0.046 -1033920 -8777.07 4 -247511 122827.7 -2.02 0.045 -488993 -6029.89 table 4 presents the results of the delta-method analysis, assessing digital transformation responses under varying conditions while incorporating error estimates and statistical significance measures. the predicted margins, standard errors, t-statistics, p-values, and confidence intervals provide insights into the reliability and variability of the estimates. the first model (_at 1) yields a predicted margin of -521,544.4 with a standard error of 260,794.7, resulting in a t-value of -2 and a statistically significant pvalue of 0.046. the 95% confidence interval (-1,034,272 to -8,817.067) confirms significance at the 5% threshold. similarly, the second model (_at 2) predicts a share loss of 247,707.2, with a smaller standard deviation (122,885.2), strengthening the t-value (-2.02) and yielding a statistically significant p-value of 0.045. the 95% confidence interval (-489,301.8 to -6,112.526) further supports the robustness of this estimate. the results for _at 3 (-521,348.5) and _at 4 (-247,511.4) also demonstrate statistical significance, as both p-values are meaningful, and their confidence intervals exclude zero. these findings indicate that digital transformation decreases under the tested conditions, though the accuracy of predictions varies due to measurement error. the analysis confirms the validity of the relationships between variables while highlighting variations in estimation precision across different scenarios. table 5: key analysis variables. variable observations mean std. dev. min max enterprise 0 year 400 2018.5 2.29416 2015 2022 vat exemption 400 0.2025 0.40237 0 1 digital transformation 400 5864.38 2665.96 1012 10890 high quality development 400 0.76355 0.15077 0.5 1.09 sustainable 400 0.871275 0.0892 0.7 1.05 revenue 400 126345.8 45599.7 50504 215821 region 0 industry 0 agbioforum, 26(3), 2024 | 102 yang & rasiah — how can vat exemption policies promote the digital transformation of green agricultural enterprises... table 5 presents basic statistics for the key variables in the analysis, including their common values, variability, and full range. the dataset comprises 400 observations from the years 2015 to 2022, with most data points falling within 2.29 years of the mean year, 2018. the vat exemption policies variable, which measures binary conditions, indicates that 25% of companies received vat exemptions, with a mean score of 0.25, ranging from 0 (no exemption) to 1 (exempt status). digital adoption shows significant variation, with scores ranging from 1,012 to 10,890, and an average of 5,864.38. high-quality development has an average score of 0.76355, with values ranging from 0.5 to 1.09, reflecting varying levels of enterprise progress. sustainable agriculture remains a priority across all businesses, as demonstrated by an average score of 0.871275, with results tightly clustered between 0.7 and 1.05. revenue also shows considerable variation, ranging from $50,504 to $215,821, with an average of $126,345.8. the analysis does not include enterprise id, regional, or industry-specific data, as these variables were deemed unnecessary or were deliberately excluded from the study. figure 1: trend analysis. figure 1 illustrates the digital investment patterns of green farms with and without vat exemptions from 2015 to 2022. the x-axis represents the time period from 2014 to 2022, while the y-axis shows enterprise digital investments, ranging from zero to 10,000. the graph differentiates between two groups: vat-exempt businesses are represented by blue lines, and vat-paying businesses by red lines. the digital investment trends for both groups vary over time but become increasingly distinct. vat-exempt businesses exhibit more consistent and robust digital investment, with spending rising more rapidly after 2018. in contrast, companies that are required to pay vat show inconsistent growth, with no clear pattern emerging over time. this analysis confirms that vat exemptions contribute to more stable and higher digital investment in green agricultural businesses, enabling them to more effectively adopt new technological solutions. figure 2: average digital investment. figure 2 presents the average digital investment amounts for enterprises with different treatment statuses, highlighting the impact of vat exemption benefits. the vertical axis represents average digital investment, while agbioforum, 26(3), 2024 | 103 yang & rasiah — how can vat exemption policies promote the digital transformation of green agricultural enterprises... the horizontal axis distinguishes between untreated businesses (group 0) and those receiving vat exemptions (group 1). the graph reveals that both groups exhibit high levels of digital investment, with only minor differences between them. vat-exempt businesses report slightly higher average digital investment figures compared to those that do not receive exemptions. however, the difference is minimal, suggesting that while vat exemptions have a positive influence on digital transformation, the overall investment decisions are influenced by a range of other factors beyond fiscal incentives. moreover, figure 3 illustrates the potential of financial tools like vat exemptions to support digital development, although the success of such fiscal measures requires additional actions from authorities to maximise their effectiveness. figure 3: relationship between revenue and digital investment. figure 3 illustrates the relationship between revenue and digital investment, with a quadratic line indicating potential non-linear patterns. individual observations are represented by green dots, plotting digital investment on the x-axis and revenue on the y-axis. the black curved line represents the quadratic fit, showing the average trend between the two variables. the plot suggests a moderate growth in revenue as digital investment increases, though no strong correlation is observed. at lower levels of digital investment, the quadratic line indicates slight revenue growth, supporting the notion that initial digital investments bring financial benefits. however, as digital investment rises, the returns diminish, with lower revenue growth at higher investment levels. the distribution of green dots around the quadratic line highlights variability, suggesting that factors beyond digital investment influence revenue outcomes. this pattern reflects the complex relationship between digital transformation and financial performance. the analysis of this scatter plot indicates that the relationship between digital investment and revenue requires further statistical exploration for a deeper understanding. conclusion and implications this research examines how vat exemption policies support digital transformation in environmentally sustainable agricultural businesses, using a high-quality development perspective. through econometric models, specifically difference-in-differences and regression techniques, we uncover the significant impact of fiscal measures on agricultural technology adoption and environmentally friendly practices. the findings indicate that vat exemptions incentivise businesses to invest more in digital solutions and cutting-edge technologies, driving positive responses in digital transformation post-policy implementation. however, the study also reveals that the outcomes of vat exemptions vary based on business size, revenue, and commitment to sustainable agriculture. small businesses face particular challenges in fully benefiting from vat exemptions due to financial constraints and limited digital knowledge. as such, the research highlights the need for vat exemption policies to be tailored to the specific needs of each business, with a focus on smaller enterprises that struggle to adopt digital technologies. special funding assistance and educational programs are crucial in helping these businesses overcome barriers to digital transformation. this study provides valuable insights for policymakers, suggesting that vat exemptions alone are not sufficient to ensure digital progress in agriculture. a combination of tax benefits, targeted financial assistance, and digital skill development programs is needed to maximise the impact of these policies. the agricultural sector's ongoing digital transformation requires an approach that balances profitability with environmental sustainability. by demonstrating the role of tax incentives in driving innovation and supporting sustainable practices, this research contributes to the academic understanding of the intersection between fiscal policies, technology, and sustainability in agriculture. future research can explore the influence of regional differences, local practices, and the spread of technology on the effectiveness of vat exemption policies. the study's findings suggest that the agbioforum, 26(3), 2024 | 104 yang & rasiah — how can vat exemption policies promote the digital transformation of green agricultural enterprises... most effective policies will combine tax benefits with additional support mechanisms, such as reduced-rate loans or direct funding, to help small-scale farmers improve their digital capabilities and environmental practices. ultimately, this research underscores the importance of creating an enabling environment for businesses of all sizes to leverage digital tools, thereby contributing to stronger economies and a more sustainable future in agriculture. references adama, h. e., & okeke, c. d. 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email: muthana@coadec.uobaghdad.edu.iq this research aims to investigate the impact of organizational commitment, in all its dimensions, on enhancing strategic thinking within the general company for pharmaceutical and medical supplies/samarra pharmaceutical company. the study addresses the problem that the company is facing significant challenges in effectively implementing strategic thinking within its organizational structure, challenges that may be linked to varying levels of organizational commitment among employees. to understand and address this issue, the research will conduct a comprehensive literature review and examine the conceptual mechanisms that connect organizational commitment and strategic thinking, which are essential for developing a successful action plan within the organization. the research sample consisted of 192 employees, yielding a response rate of 78.36% from the target population. the descriptive-analytical method was employed to fulfill the research objectives. the research findings revealed several outcomes, with particular emphasis on "the implementation of strategic thinking within the company." furthermore, the research identified a statistically significant positive effect of organizational commitment on the enhancement of strategic thinking and its various dimensions. this research contributes to the existing literature by exploring the relationship between organizational commitment and strategic thinking, particularly in the context of the general company for pharmaceutical and medical supplies/samarra pharmaceutical company. based on these results, the research suggests that the investigated company should embrace organizational commitment as a factor in strategic planning and implement organizational strategies that promote strategic thinking to strengthen its competitive position. additionally, it recommends the development of managerial capabilities in organizational commitment by fostering employee discussions to identify work-related issues and cultivating a supportive organizational culture conducive to strategic thinking. keywords: organizational commitment, strategic thinking, affective commitment, continuous commitment, normative commitment, systemic thinking, divergent thought process, reflective thinking. introduction improving organizational commitment is crucial for employee retention because it signifies their willingness to actively participate in and be a part of a specific organization (werang & pure, 2018). employees with high levels of organizational commitment are more likely to align themselves with desired organizational behaviors, leading to a decrease in turnover rates (meilisa & bernarto, 2020). continuous engagement can be fostered by soliciting valuable input from team members, addressing their concerns, and involving them to some extent in the decision-making process (hanaysha, 2016). organizational commitment serves as an indicator of employees' affinity or dissatisfaction with the organization (jufrizen, nadia, & muslih, 2022). organizations must attract and retain employees by prioritizing the fulfillment of their expectations (upadhyaya & ayari, 2019). organizational commitment encompasses three key factors: a strong belief in the organization's goals and values, a strong motivation to exert maximum effort in achieving the organization's objectives, and a desire to maintain affiliation with the organization (abuzaid, 2018). in a rapidly evolving and dynamic business environment, managers need to discover strategies to enhance commitment (çınar, çapar, & mermerkaya, 2022). while external commitment motives hold significance in organizations, internal motives tend to be more enduring as they are rooted in employees' beliefs (krajcsák, 2019). thus, it is crucial to identify the factors influencing organizational commitment and develop them through effective managerial interventions (heidari et al., 2022). consequently, it is essential to explore the factors that impact organizational commitment (sriphong et al., 2022), such as ownership, employees' roles within the organization, and the work environment, which influence employees' attitudes (riwukore, marnisah, & habaora, 2022). traditionally, strategic thinking has been primarily associated with the field of strategic management, and research has consistently highlighted the importance of strategic thinking abilities for managers. its significance has been emphasized as a means to address the limitations of traditional strategic planning and to emphasize its value. furthermore, fostering strategic thinking facilitates the development of strategies and enables managers to enhance "creative problem-solving" to drive organizational success (tooranloo & saghafi, 2019). strategic thinking is a methodology that aims to uncover the underlying motivations of businesses and challenge rigid, traditional modes of thinking (bani-hani, 2021). some argue https://orcid.org/0000-0001-8619-3648 mailto:noorkhalil@coadec.uobaghdad.edu.iq https://orcid.org/0000-0003-2642-9545 mailto:saadoon@coadec.uobaghdad.edu.iq https://orcid.org/0000-0002-1712-7038 mailto:muthana@coadec.uobaghdad.edu.iq agbioforum, 27(1), 2025 | 123 ibrahim et al — improving organizational commitment by enhancing strategic thinking that strategic thinking is a common skill possessed by certain individuals, while others argue that it is not merely the ability to recover from a situation or to rely solely on cognitive mechanisms. literature predictions and hypotheses have identified significant gaps in understanding strategic thinking, including its conceptualization, measurement, and adaptation to the global context (dhir, dhir, & samanta, 2018). strategic thinking is widely recognized as one of the most essential skills for managers. over the past two decades, both researchers and practitioners have increasingly focused on the concept of strategic thinking. numerous studies have explored its role and impact in various domains, including talent management (bani-hani, 2021), operational performance (ahmed, ahmed, & atiyah, 2020), strategic human resource management (alomari, 2020), and family firms (khokhar & jalbani, 2018), among others. while the definition and importance of strategic thinking have remained relatively unchanged since its initial introduction, subsequent studies have further refined and explained the concept, highlighting its significance and positive effects on organizations and their performance (shaik & dhir, 2021). therefore, understanding the significance of strategic thinking within the operational context is crucial (smriti, dhir, & dhir, 2021). literature review organizational commitment organizational commitment has been a widely discussed and researched concept, often examined as a dependent variable, an independent variable, or a mediating variable. it encompasses the behavioral characteristics of employees that have been the focus of extensive research. according to literature, organizational commitment reflects the extent to which employees accept and believe in the goals of the organization and their desire to remain and not leave. the multidimensional model of organizational commitment developed by scholars has gained significant recognition and empirical support across different cultures. employees with a strong commitment to their work represent valuable human capital for organizations to effectively achieve their goals. consequently, organizations must pay attention to factors that can influence organizational commitment (sudirman et al., 2021). it also facilitates goal achievement by actively involving employees in task execution (setyawan, supriyanto, & lestari, 2022). being an important behavioral dimension, organizational commitment serves as an indicator of employees' willingness to remain within the organization. it is a distinct psychological aspect (amin, 2022) and plays a significant role in understanding employees' behavior, fostering happiness, efficiency, loyalty, and a sense of responsibility (aminizadeh et al., 2022). organizational commitment includes employees' loyalty and willingness to be part of the organization, as stated by castellano et al. (2021), and involves employees' agreement, loyalty, and drive to achieve organizational goals, as mentioned by zhang et al. (2019). additionally, schwepker & dimitriou (2021) affirmed that organizational commitment is an attitude that reflects employees' understanding of their organization, their commitment to its goals, and their active engagement in building relationships to contribute to the organization's success. highly committed employees demonstrate a strong inclination to exert efforts to achieve organizational goals, which holds significance for individuals, organizations, and society as a whole, ultimately enhancing productivity (ha & lee, 2022). according to literature, commitment is defined as a driving force that binds individuals to exhibit rational behavior towards one or multiple goals. it is important to note that commitment does not solely generate negative loyalty; instead, it can be positive and involve an active relationship with the organization, with the aim of exerting every effort for its success (abdullah & hasma, 2017). organizational commitment signifies the ability and willingness of employees to align their behaviors with the organization's needs, priorities, and goals, actively working towards their accomplishment. sumarsi & rizal (2021) propose three dimensions of commitment: understanding and defining organizational goals, fostering loyalty and engagement in organizational tasks, and involving employees in the pursuit of optimal goals (setyorini, manafe, & nino, 2022). having committed employees is a valuable asset for organizations as it contributes to the delivery of high-quality services and products. as a result, employees are likely to perform their duties optimally and achieve high levels of performance (winarsih & riyanto, 2020). the relationship between organizational commitment and various behavioral variables has been extensively examined, showing influences from multiple factors such as leadership behaviors, personal traits, social responsibility, organizational support, spirituality in the workplace, emotional intelligence, demographic factors, job development, organizational justice, organizational climate, employee motivation, job performance, role behavior and organizational citizenship behavior (hameli & ordun, 2022), job satisfaction, ethical culture, leadership styles (tohidian & rahimian, 2019), occupational health and safety (suárez-albanchez et al., 2021), organizational support, and many others (suárezalbanchez et al., 2022). organizational commitment can be defined simply as employees' loyalty to the values and goals of the organization, their sense of belonging, and their ethical commitment to staying within the organization (phothiwan & suntayakorn, 2018). it represents the employees' desire and need for the organization (novitasari et al., 2020) and reflects their identification with the organization through various means. this commitment is seen as the employees' affiliation with the organization (doan, nguyen, & nguyen, 2020). it is characterized by the employees' willingness to work hard for the organization, their intention to stay, and their increased engagement and motivation to contribute to their work (chen et al., 2022). high organizational commitment is associated with employees who contribute actively, have a strong understanding of the organization's mission and values, demonstrate a readiness to work diligently, and have a strong desire to remain in the organization (dewi, supriadi, & iswanto, 2022). organizational commitment encompasses not only the psychological connection employees feel but also the behaviors they exhibit to contribute to goal achievement (kim & choi, 2021). it involves employees' willingness to make sacrifices for the organization due to their emotional agbioforum, 27(1), 2025 | 124 ibrahim et al — improving organizational commitment by enhancing strategic thinking attachment and leads to a reduction in counterproductive work behaviors that impede organizational success (kim, jung, & jung, 2022). therefore, employees with lower commitment to their organization are more likely to be prone to turnover compared to those with higher commitment, as they may perceive greater opportunities to invest in alternative options (jolles et al., 2023). researchers have consistently emphasized that commitment is a desired goal for achieving compatibility and intentional commitment, as it serves as a motivator for organizations to retain and develop their competencies as a sustainable advantage. both selfcommitment and organizational commitment hold significant importance, with research affirming that self-commitment has a direct relationship with affective and normative commitment, as well as an inverse indirect relationship with continuance. this understanding has led researchers to place more emphasis on testing applicants during the recruitment phase or providing training programs for current employees to enhance self-commitment, which in turn leads to improved levels of organizational commitment (cicekli & kabasakal, 2017). numerous studies have demonstrated that organizational justice positively impacts organizational commitment, as the implementation of fair practices within an organization supports the state of commitment among employees (minibas-poussard, le roy, & erkmen, 2017). this underscores the importance of fostering a collaborative and fair work environment that enables employees to fully utilize their potential (afshari & gibson, 2016). furthermore, researchers have focused on studying commitment from the perspective of managers' fairness in transactions and have considered psychological factors to enhance organizational productivity and effectiveness. effective organizational commitment holds special significance, particularly in the context of small organizations, as highlighted in the literature (gomez-mejia et al., 2011). high levels of organizational commitment, characterized by a long-term orientation, are recognized as valuable advantages for organizations. according to prior literature, employees who possess strong organizational commitment not only believe in the organization's goals but also demonstrate motivation to make positive contributions to its success. as a result, they are more likely to play a cooperative role during leadership transitions and experience higher satisfaction with the succession process (hoekx et al., 2022). according to literature, organizational commitment is conceptualized as the degree to which employees identify with the organization, desire to engage in its activities, and adhere to its ethics and expectations. this level of commitment influences employees' inclination to either stay with the organization or seek alternative employment (wangloan et al., 2022). these factors foster a sense of organizational defense, motivate improved work performance, and instill a strong belief in achieving organizational goals. consequently, employees feel a sense of responsibility to report potential threats to protect the organization from potential collapse (safitri, 2022). however, the impact of these factors on employee organizational commitment remains a topic of debate and lacks consensus among researchers (akingbola & van den berg, 2019). some studies measure organizational commitment as predictors of job satisfaction and other organizational outcomes, while others conceptualize it as an outcome influenced by organizational factors (wang, 2022). over the past two decades, researchers studying the organizational commitment model have focused on three elements, including individual data analysis techniques, organizational analysis, and analyzing the organization's profile. these elements include (pinho et al., 2024): 1. "emotional commitment" focuses on the emotional relationships of employees with the organization. emotional commitment deals with the emotional attachment and contributes to the identification and engagement of employees with the organization they work for. it also reflects the extent of employees' engagement with their organization, indicating a psychological connection with them (sobaih et al., 2022). this suggests a psychological bond with them (ampofo, 2020). 2. "continuance commitment" revolves around the anticipated costs of leaving the organization (deressa et al., 2022) and also refers to the losses incurred upon leaving the organization. employees have no reason to contribute to and stay in the organization other than the difficulty of resignation, which can be attributed to negative or fluctuating psychological ties with the organization. 3. "normative commitment" refers to the expected commitment to remain within the organization, responding to the way the organization treats them. it involves the ethical duty that employees owe to the organization, making it what is required, i.e., an ethical obligation. normative commitment develops when employees internalize a set of practices that indicate proper behavior and generate a sense of commitment to the organization (moreira, sousa, & cesário, 2022). it represents employees' sense of duty and responsibility in maintaining a long-term connection with the organization (ampofo et al., 2023b), and organizations should adopt appropriate strategies to enhance normative commitment among employees (ampofo et al., 2023a). this is particularly important for large organizations that strive to provide high-quality services to discerning customers (kim, kim, & lee, 2022). normative commitment is associated with a sense of responsibility, loyalty, and the willingness to remain connected to the organization (fukuzaki et al., 2023). behavioral outcomes linked to employee commitment include higher retention rates, improved attendance, enhanced performance, increased work quality, and individuals' willingness to make sacrifices to support the organization's success. strategic thinking management experts today widely acknowledge that the organizational environment and supporting processes are critical elements that determine the success or failure of any organization in the short term. in the face of current global economic challenges, numerous struggling organizations with poor performance are actively seeking strategies to survive and thrive. strategic thinking is the art of surpassing agbioforum, 27(1), 2025 | 125 ibrahim et al — improving organizational commitment by enhancing strategic thinking competition by adopting an innovative and self-reflective approach (adiguzel, 2020). among the essential leadership skills for achieving effectiveness, strategic thinking holds significant importance. scholars have developed various models that highlight strategic thinking as a key ability associated with leadership effectiveness. according to literature, strategic thinking contributes to planning, organizing, coordinating, monitoring, and leveraging available resources. this notion is supported by a scholar, who confirms that proficiency in strategic thinking enables organizations to adapt and thrive amidst future challenges. prior studies emphasize that leaders who possess strategic thinking capabilities are adept decision-makers and bring greater value to their organizations. moreover, proficiency in strategic thinking is considered a fundamental requirement for leadership in the contemporary volatile environment (muriithi, louw, & radloff, 2018). salavati et al. (2017a) emphasize that the ultimate goal of strategic thinking is to envision future changes and make strategic choices (shaik & dhir, 2020). strategic thinkers are individuals who effectively utilize past experiences and plans to navigate challenges. thus, strategic thinking can be seen as the art of outperforming competitors by anticipating their efforts to overcome you with a similar mindset (kula & naktiyok, 2021). the strategic management process encompasses two essential concepts: strategic planning and strategic thinking. both concepts hold equal importance in successfully achieving the mission and organizational vision. strategic management places various demands on managers, including the ability to assess the situation, recognize the need for change, formulate change strategies, implement safe practices during strategic changes, and translate strategy into tangible outcomes. in essence, strategic thinking in management is the key to the success of leaders and their teams (bikmetov et al., 2020). while it is acknowledged that strategic planning follows strategic thinking and involves setting goals, selecting product/market options, and performing coordination and control functions, it should be noted that strategic thinking occurs before, during, and after strategic planning. strategic thinking serves as the foundation, while strategic planning is the outcome (asobee, 2021). organizations require leaders and employees who possess strong strategic thinking skills and can enhance their capabilities to navigate unpredictable market dynamics and maintain competitiveness (salamzadeh, bidaki, & vahidi, 2018), thereby gaining a competitive advantage and developing effective strategies (kaushik & dhir, 2019). strategic thinking creates a future by driving changes in the present (smriti et al., 2021). strategic thinking necessitates thorough research, analysis, and thoughtful consideration to formulate a plan for organizational development. organizations that exhibit strategic thinking demonstrate keen perception and the ability to establish longterm objectives (aydogan et al., 2018). the goals of strategic thinking encompass the ability to analyze, examine, and assess data, make well-timed and precise decisions, optimize the utilization of resources, and deliver the utmost quality, thereby encompassing the capacity to analyze the present and future realities (alqershi et al., 2021). strategic thinking is characterized by literature; as a forwardlooking projection of an organization's future, involving divergent thought processes that are implemented and supported by groups through interaction and interdependence. it surpasses temporal, spatial, and resource constraints to offer innovative solutions to the complex challenges organizations face in their competitive landscapes. furthermore, it drives changes in the competitive arena, fostering dynamics of creativity, innovation, and proactivity (victor, andy, & okon, 2021). strategic thinking is an ongoing process that empowers organizations to create value and gain competitive advantage. every organization requires new ideas, products, and/or services to not only survive but also avoid stagnation and potential extinction. literature also highlight the consensus regarding the need for strategic thinking, guiding developing managers' capabilities, and emphasizing the significance of their efforts (banyhamdan et al., 2020). suggest that strategic thinking involves the adaptation of interpreting, analyzing, applying, and rearranging information in multiple ways to generate a range of alternative courses of action, all aimed at achieving defined goals. strategic thinking is defined as a divergent thought process employed by individuals to accomplish a set of objectives and represents a mental activity that drives thinking. organizational strategic thinking encompasses the capacity to generate and develop a vision by monitoring anticipated future organizational events, challenging conventional thinking, and facilitating efficient decision-making promptly (allen, 2019). moreover, strategic thinking can be viewed as an organization's collective mindset, driving its intelligent business approach and fostering alignment towards a common goal (panduru, scarlat, & gherman, 2021). strategic thinking is widely recognized as the generation and application of unique ideas and opportunities to establish a sustainable competitive advantage for businesses. it involves the ability to develop effective plans that align with organizational goals within specific economic contexts (ibrahim olaniyi & elumah lucas, 2016). strategic thinking requires managers to go beyond routine procedures and focus on long-term strategic business objectives that are carefully planned (salamzadeh et al., 2018). furthermore, it is associated with accurate and holistic thinking, which seeks to understand the interplay of various components that constitute the whole. this involves considering past, present, and anticipated future influences and examining how the parts and their relationships shape the overall picture (shaik & dhir, 2021). in his book "strategic thinking" emphasized the importance of discovering distinct scenarios, as failure and confusion can arise even when significant physical and psychological efforts are exerted by both managers and employees striving to shape their future and work domains. strategic thinking enables managers and planners to create a positive future for their employees, allowing them to employ appropriate, innovative, and novel strategies (kheirabadi et al., 2019). the success of any business hinges not only on the qualifications and expertise of its employees but also on strategic thinking, which many researchers consider a crucial component of human capital within organizations (salamzadeh, nejati, & heidaripourafshar, 2015). strategic thinking plays a vital role agbioforum, 27(1), 2025 | 126 ibrahim et al — improving organizational commitment by enhancing strategic thinking in both strategy development and strategic management, as highlighted by literature. it contributes to achieving organizational outcomes and profitability. kazmi & naaranoja (2015) propose that strategic thinking enables managers to integrate elements such as analysis, exploration, understanding, and multi-dimensional positioning. by doing so, they can develop action plans that have the maximum positive impact on attaining predetermined goals and objectives. strategic thinking empowers managers to cultivate a clear organizational vision, creatively solve problems, and engage employees in gathering and comprehending information while adapting to changes in the external environment. in the face of an increasingly unpredictable business environment, strategic thinking has emerged as a critical leadership style within organizations (dixit et al., 2021). despite the passage of two decades since the introduction of strategic thinking theory, much of the literature remains theoretical and conceptually driven. a prior study posits that strategic thinking shapes sustainable strategies or business models that are presented to customers (tajpour, hosseini, & moghaddm, 2018). to accomplish this, strategic thinking incorporates central and additional information and employs qualitative synthesis of ideas and perceptions. it is characterized by awareness, specificity, and practicality and becomes a competitive advantage for organizations (alomari, 2020). despite the existence of various assumptions, there is a consensus that strategic thinking encompasses a range of elements essential for a strategic thinker. scholars are credited as a pioneer in presenting the core concept of strategic thinking, while liedtka (1998) developed a widely adopted model consisting of five elements: systems perspective, intention-focused, thinking in time, intelligent opportunism, and hypothesisdriven (salavati et al., 2017b). subsequent scholars have often relied on liedtka's model. a prior study proposed three elements of strategic thinking: systematic and creative thinking, the ability to progress, and the identification of the organization's future vision (moh’d abu bakir, 2019). considering the nature of unstructured situations in which strategic thinking occurs, it involves grappling with multiple variables and establishing connections between them, incorporating knowledge related to employees' values and beliefs within the organization. the literature review mentioned above indicates that strategic thinking is a multidimensional construct, and when applied in an organizational context, it comprises three dimensions: 1. systems thinking: systems thinking is a crucial aspect of strategic thinking that emphasizes the holistic view of the organization. it requires managers to understand the complex interrelationships within the organizational system. by adopting a comprehensive perspective, managers can grasp the interconnectedness of various elements and recognize the system's value generation and interdependencies. external changes also influence the decision-making process, highlighting the need for strategic thinkers to consider vertical links within the system from multiple perspectives. this holistic understanding enables managers to identify system characteristics, power dynamics, patterns, and interrelationships, which in turn shape system behaviors and provide options for appropriate actions (alomari, 2020). it involves gathering information to define the problem as a whole before breaking it down into parts. 2. divergent thought process: strategic thinking empowers managers to embrace diverse perspectives and integrate them to comprehend the complexities of organizational systems. therefore, dealing with divergent thinking involves a wide range of skills that encompass various thinking approaches present in the scientific processes of strategic thinking, such as creative thinking, divergent thinking, intuitive thinking, and hypothesis-based thinking. in the context of strategic thinking, divergent thinking processing is defined as the ability to identify, differentiate, and employ diverse perspectives to assess the organizational situation. it was explained that strategic thinking produces good strategic planning, rational decisions, and successful implementation of organizational strategies (moh’d abu bakir, 2019). 3. reflection: thinking represents a recurring process used by managers to analyze the situation by reflecting on current beliefs, perceptions, and experiences. in an organizational context, strategic thinking can occur individually or within a community of managers, where multiple perspectives are considered to make collective decisions. reflection in strategic thinking involves applying knowledge to new situations and adapting to new facts, enabling managers to navigate evolving circumstances. the current research represents an attempt to articulate the correlation between the concepts of organizational commitment (oc) and strategic thinking (st) to direct the organization's capabilities towards generating ideas for employees to offer new products and services in modern organizations. based on this, the research problem is manifested in the following question: how can organizational commitment be improved and strategic thinking be enhanced within a pharmaceutical company in samarra? organizational commitment & strategic thinking the study aims to explore the causal relationship between performance appraisal and organizational commitment, with the mediating role of strategic thinking among employees of the department of sports and youth. this is an applied study in terms of its purpose and can be classified as descriptivecorrelational in terms of methodology. the results indicate that strategic thinking does not have a statistically significant mediating role in the relationship between performance appraisal and organizational commitment. therefore, it is recommended that managers and authorities in the department of sports and youth encourage employees to engage in forward-thinking and performance identification. this should be utilized to enhance organizational commitment and organizational prosperity through sound planning and a focus on justice in performance appraisal (khaje & moghtadi, 2024). currently, with the increasing changes and disruptions in the organizational environment, organizations need to adopt strategic thinking to survive and improve their performance relative to competitors. strategic thinking helps employees agbioforum, 27(1), 2025 | 127 ibrahim et al — improving organizational commitment by enhancing strategic thinking move beyond daily challenges and adopt a long-term vision to fulfill their organizational commitments. thus, when considering strategic thinking, commitment to the organization surpasses passive loyalty, moving towards active engagement, which leads to performance appraisals based on strategic thinking, thereby promoting the health of the organization. despite the various definitions of strategic thinking, studies on how to develop this type of thinking and the impact of individual, group, and organizational factors on it remain limited. however, some research has shown that proper performance appraisal can increase organizational commitment, considering employees' strategic thinking. in analyzing the relationship between strategic thinking and organizational commitment, oliveira & honorio (2020) found that a strategic approach in the human resources system positively and significantly influences employees' organizational commitment. the practical aspect research method to analyze the data collected through the questionnaire, computer software packages (spss v.28) were utilized. various methods were employed, including the use of "cronbach's alpha coefficient" to measure reliability, means to gauge sample tendencies, correlation coefficient to assess the strength and direction of relationships between variables, and simple linear regression to determine the impact of organizational commitment on strategic thinking. the reliability values obtained were (68.4%) for organizational commitment and (73.8%) for strategic thinking, indicating a robust and stable measurement tool. these findings demonstrate that the variables are of high quality and suitable for research purposes, as a reliability coefficient (cronbach's alpha) above 0.70 is considered acceptable. research community and sample the research was conducted among employees at the general company for pharmaceutical and medical supplies in samarra, which was selected due to its notable prosperity in iraq. due to the unavailability of precise statistical data regarding the sample size, a random sample of 245 individuals was chosen. after identifying the research community and sample, the questionnaires were distributed, resulting in a collection of 211 responses. some incomplete questionnaires (totaling 19) were excluded, leading to a final analysis of 192 questionnaires. research instrument the research instrument utilized was a questionnaire designed based on the likert scale. it consisted of a set of statements measuring the attitudes of the sample towards the research variables. the questionnaire comprised two main variables, as shown in table 1. table 1: research instrument. author & year scale name sub-dimension hameli & ordun (2022) organizational commitment • emotional commitment • continuance commitment • normative commitment srivastava & d’souza (2021) strategic thinking • systems thinking • divergent thought process • reflection statistical treatment of the research testing the main hypothesis the main hypothesis tested was as follows: there is a significant effect of organizational commitment on enhancing strategic thinking in the researched company at a significant level greater than (α ≤ 0.01), as shown in table 2. table 2: correlation and impact table between organizational commitment and strategic thinking. the independent variable correlation coefficient sig. the dependent variable organizational commitment 0.878** 0.000 strategic thinking model sum of squares mean square test f regression 79.859 15.570 value sig. the remaining 448.839 1.144 13.856 0.000 model r square (r²) std. error ** the influence is statistically significant at the level of (α ≤ 0.01) the coefficient of determination 0.792 0.466 model the value sig. beta 0.342 0.000 based on the data presented in the previous table, it is clear that there is a significant and positive correlation between organizational commitment and strategic thinking. the correlation coefficient (r=0.878) demonstrates statistical significance at a significance level of (α ≤ 0.01). this indicates that as organizational commitment increases, there is a corresponding increase in the ability to engage in strategic thinking. these findings validate the regression relationship and underscore the fundamental nature of the association between these variables. furthermore, the examination of the agbioforum, 27(1), 2025 | 128 ibrahim et al — improving organizational commitment by enhancing strategic thinking table reveals a regression relationship between the variables, supported by the test value (f=13.856), which indicates statistical significance at a significance level of (α ≤ 0.01). the coefficient of determination (r²=0.792) signifies that organizational commitment accounts for (79.2%) of the variation in strategic thinking. the remaining proportion is attributable to other variables not included in the regression analysis, as well as factors such as random sampling errors and measurement accuracy. the table also presents an impact coefficient (β=0.342), suggesting that organizational commitment influences the ability to achieve strategic thinking by 34.2%. this finding reinforces the validity of the main hypothesis. the first sub-hypothesis was tested which states that there is a significant impact of affective commitment on enhancing strategic thinking in the researched company. the results indicate a statistically significant effect at a significance level of (α ≤ 0.01), and are shown in table 3. table 3: correlation and impact table between affective commitment & strategic thinking. the independent variable correlation coefficient sig. the dependent variable affective commitment 0.766** 0.000 strategic thinking model sum of squares mean square test f regression 47.425 7.904 value sig. the remaining 459.260 1.218 6.514 0.000 model r square (r²) std. error ** the influence is statistically significant at the level of (α ≤ 0.01) the coefficient of determination 0.583 1.10372 model the value sig. beta 0.631 0.000 based on the previous table, it is evident that there is a significant positive correlation between affective commitment and strategic thinking. the correlation coefficient value (r=0.766) indicates statistical significance at a significance level of (α ≤ 0.01). this implies that an increase in focus on affective commitment leads to an increase in the ability to achieve strategic thinking. these findings confirm the validity of the regression relationship and highlight the essential nature of the relationship between the variables. furthermore, the analysis of the previous table reveals a significant regression relationship between the variables, as indicated by the test value (f=6.514) at a significance level of (α ≤ 0.01). the coefficient of determination (r²=0.583) suggests that affective commitment explains (58.3%) of the variance in strategic thinking. the remaining proportion is attributed to other variables that were not included in the regression analysis, as well as random sampling errors, measurement accuracy, and other factors. moreover, the table indicates an impact coefficient (β=0.631), indicating that affective commitment influences the enhancement of strategic thinking by 63.1%. this further supports the validity of the first subhypothesis. the testing of the second sub-hypothesis there is a significant effect of continuance commitment in enhancing strategic thinking in the company researched at a significant level of (α ≤ 0.01), as shown in table 4. table 4: correlation and impact table between continuance commitment & strategic thinking the independent variable correlation coefficient sig. the dependent variable continuance commitment 0.739** 0.000 strategic thinking model sum of squares mean square test f regression 9.720 1.944 value sig. the remaining 496.965 1.315 1.483 0.000 model r square (r²) std. error **the influence is statistically significant at the level of (α ≤ 0.01) the coefficient of determination 0.652 0.84661 model the value sig. beta 0.411 0.000 based on the previous table, it is clear that there is a significant positive correlation between continuance commitment and strategic thinking. the correlation coefficient value (r=0.739) indicates statistical significance at a significance level (α ≤ 0.01). this means that as the focus on continuance commitment increases, the ability to achieve strategic thinking also increases. it confirms the validity of the regression relationship and the essential nature of the relationship between the variables. furthermore, the examination of the previous table demonstrates the presence of a regression relationship between the variables, as evidenced by the significant test agbioforum, 27(1), 2025 | 129 ibrahim et al — improving organizational commitment by enhancing strategic thinking value (f=1.483) at a significance level of (α ≤ 0.01). the coefficient of determination (r²=0.652) reveals that continuance commitment accounts for 65.2% of the variance in strategic thinking. the remaining portion of the variance is explained by other factors not included in the regression relationship, as well as random sampling errors and measurement accuracy. moreover, the table indicates an impact coefficient (β=0.411), indicating that continuance commitment has a (41.1%) influence on enhancing strategic thinking. this further supports the validity of the second sub-hypothesis. the testing of the third sub-hypothesis there is a significant effect of normative commitment in enhancing strategic thinking in the researched company at a significant level of (α ≤ 0.01), as shown in table 5. table 5: correlation and impact table between normative commitment & strategic thinking. the independent variable correlation coefficient sig. the dependent variable normative commitment 0.739** 0.000 strategic thinking model sum of squares mean square test f regression 9.720 1.944 value sig. the remaining 496.965 1.315 1.489 0.000 model r square (r²) std. error ** the influence is statistically significant at the level of (α ≤ 0.01) the coefficient of determination 0.649 0.86441 model the value sig. beta 0.414 0.000 based on the previous table, it is evident that there is a significant positive correlation between continuing commitment and strategic thinking. the correlation coefficient (r=0.739) indicates statistical significance at a significance level of (α ≤ 0.01), implying that as the level of continuance commitment increases, there is a corresponding increase in the ability to achieve strategic thinking. these findings provide strong evidence supporting the validity of the regression relationship and the essential nature of the connection between these variables. further examination of the table confirms the presence of a regression relationship between the variables, as indicated by the significant test value (f=1.489) at a significance level of (α ≤ 0.01). moreover, the coefficient of determination (r²=0.649) reveals that continuance commitment accounts for 64.9% of the variance in strategic thinking. the remaining variance is attributed to other factors that were not included in the regression analysis, as well as random sampling errors and measurement accuracy. furthermore, the impact coefficient (β=0.414) displayed in the table demonstrates that continuance commitment has a notable influence on enhancing strategic thinking, accounting for 41.4% of the variation observed. this additional evidence further supports the validity of the third sub-hypothesis. by establishing the validity of these sub-hypotheses, the main hypothesis has been effectively substantiated. discussion of results the search results indicate that organizational commitment dimensions generally have a positive impact on enhancing strategic thinking. these results are consistent with the confirmation by liedtka (1998) that employing all dimensions of strategic thinking leads to generating value for organizational employees and adapting to environmental changes by leveraging current capabilities. a prior study described that strategic thinking activates organizational commitment. organizations that rely on strategic thinking are better equipped to solve strategic problems, formulate hypotheses, envision their future, and enhance their ability to adapt to a changing environment to improve their competitive position. the results are also in line with a prior study which suggests that strategic thinking provides organizations with several characteristics, including a comprehensive understanding of their environment, focusing on creativity and innovation, investment in new ideas, and utilization of existing ideas. these characteristics serve as essential elements for enhancing organizational commitment. the research results can be interpreted by considering the role of strategic thinking in enhancing the capabilities and skills of top management in formulating strategy and decisionmaking processes, leading to increased emotional commitment within the organization, even in resourceconstrained environments. strategic thinking motivates both employees and top management to engage in continuous development and updates by promoting processes of creativity and innovation, driven by exploring new ideas and applications to remain competitive. this, in turn, promotes normative commitment. moreover, strategic thinking assists top management in anticipating environmental changes, enabling them to recognize the need for organizational change and renewal to align with these changes. by leveraging financial resources and reemploying existing procedures, normative commitment is further nurtured. the study revealed that the company researched demonstrates a moderate level of organizational commitment with an average score of 3.10. there is also a statistically significant and positive relationship between organizational commitment and the enhancement of strategic thinking within the researched company. the results indicate that organizational commitment has a statistically significant and positive impact on promoting systemic thinking within the organization. furthermore, the findings also confirm that organizational commitment has a significant and positive statistical impact on embracing diverse ideas and fostering thinking within the company. the average mean score for strategic thinking activities within the company is 3.37. agbioforum, 27(1), 2025 | 130 ibrahim et al — improving organizational commitment by enhancing strategic thinking based on the results, the study recommends the following actions for the researched company. it is of utmost importance for the company to integrate strategic thinking into strategic planning processes and the implementation of organizational strategies, considering its significant importance in enhancing competitive positioning. there is a need to develop and enhance the competencies of managers at all levels regarding organizational commitment by encouraging discussions among employees to address workrelated issues and problems. efforts should be made to provide the necessary prerequisites for facilitating strategic thinking processes. this includes developing an organizational culture that supports strategic thinking, adopting a clear vision, fostering innovation and creative processes to adapt to market changes, and employing systemic thinking as an approach to handle future challenges and continuously improving strategic thinking through organizational commitment. it is important to utilize research-based measures to assess and improve levels of strategic thinking practices. continuous efforts should be made to achieve organizational commitment by promoting strategic thinking and considering alternative approaches, given the significance of organizational commitment in organizational performance and long-term sustainability. it is necessary to establish dedicated units specialized in strategic thinking that emphasize clear managerial practices and procedures, along with providing the required resources for their functioning and obtaining support from top management. managerial implications this study explores ways to enhance organizational commitment through developing strategic thinking, focusing on several key managerial points. firstly, integrating strategic thinking into the organizational planning process is essential. managers should ensure that their strategies reflect the company's long-term vision and adapt to the ongoing changes in the pharmaceutical sector. secondly, enhancing organizational commitment requires strengthening employees' strategic thinking capabilities, which necessitates creating an environment that encourages the development of these skills through effective training programs. furthermore, building a supportive organizational culture is a critical factor. managers should promote innovation and strategic thinking. effective communication about strategic goals helps employees understand their role in achieving these objectives, thereby enhancing their commitment. it is also crucial to regularly monitor and evaluate the impact of strategic thinking initiatives on organizational commitment while being responsive to external changes. by addressing these managerial aspects, samarra pharmaceuticals can enhance organizational commitment through improved strategic thinking, thus strengthening its competitive position in the market. contribution this study contributes to the literature on organizational behavior and strategic management by exploring the relationship between organizational commitment and strategic thinking. the study provides empirical evidence on how enhancing strategic thinking can lead to improved organizational commitment within the context of the general company for pharmaceutical and medical supplies/samarra pharmaceutical company. the findings offer valuable insights into the mechanisms through which strategic thinking impacts various dimensions of organizational commitment, providing a nuanced understanding that benefits both theory and practice. furthermore, the study adds to the limited research on strategic thinking in the pharmaceutical industry, highlighting its crucial role in fostering a committed workforce. by focusing on a specific company within a dynamic and competitive industry, this research also contributes to the broader discourse on how organizations can leverage strategic thinking to enhance employee loyalty and performance, ultimately strengthening their competitive position in the market. limitations and future research the research limitations and future research directions are as follows: generalization of results: despite the importance of the findings of the current research, there are certain limitations that need to be considered. firstly, the research was limited to the general company for pharmaceutical industries and medical supplies in samarra. therefore, the results cannot be generalized to other companies. sample size and analysis: another limitation of the current research is the limited sample size and analysis of respondents. future research could benefit from larger sample sizes and more robust analytical methods to enhance the validity and reliability of the findings. regarding future research, the researcher suggests conducting studies focused on organizations operating in industrial or service sectors. strategic thinking is important for future management studies, and there is a need for strategic thinking at various organizational levels. this can help determine which sectors exhibit higher organizational commitment and achieve higher levels of strategic thinking. additionally, conducting studies on organizations of different sizes can help confirm the obtained results. furthermore, the researcher proposes conducting future research that explores the relationship between organizational commitment and variables that have not been adequately covered in previous studies, such as strategic intelligence, strategic agility, and entrepreneurial orientation. expanding the scope of the research to include organizations of different sizes to confirm the results obtained in this 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strengthening the role of environmental communication through continuous awareness campaigns to cultivate an environmental consciousness among citizens; and promoting active citizen participation in all initiatives aimed at reducing pollution sources. keywords: environmental culture, environmental knowledge, attitudes, environmental sustainability. introduction in modern society, there is a growing emphasis on environmental protection at global, national, and local levels to increase the sustainability of economy (tam, 2025). if the environmental protection is overlooked then it could create various issues likely resource exploitation, diverse pollution sources, and the acknowledgment of significant harmful impacts that endanger human life and the future of the planet (al-swidi, gelaidan, & saleh, 2021; boynazarova, 2023). the environmental challenges also dampens the sustainability of any country (al-swidi et al., 2021). to overcome the environmental challenges, individuals must expand their understanding, culture, and perceptions while modifying their behaviors to create patterns that contribute to environmental preservation (sesana et al., 2021). such behavioral transformations will only be realized if a majority of society adopts a positive awareness and values concerning the environment (sesana et al., 2021). to increase the environmental awareness, there should be define a environmental culture broadly which encompasses the shared values, beliefs, practices, and behaviors that guide human interaction with the natural environment (hariram et al., 2023). at the heart of this culture lie environmental attitudes, which influence how individuals perceive environmental issues, engage with sustainability efforts, and support eco-conscious policies (makhloufi et al., 2022). as environmental challenges become more urgent and complex. to handle these challenges, there should be a positive environmental culture through attitudinal change that could emerged as a critical pathway toward sustainability (nguyen & jones, 2022). other authors also highlighted that to improve the sustainability of any country, environmental attitudes are often seen as predictors of environmentally responsible behavior, including energy conservation, waste reduction, and participation in environmental initiatives (ogiemwonyi et al., 2023). over the last two decades, empirical researches has expanded our understanding of how attitudes influence behaviors at the individual, organizational, and community levels to increase countries economic growth (deville et al., 2021). if the environmental culture is not properly protected then it creates various poverty or sustainability challenges (wyss, knoch, & berger, 2022). therefore, it is crucial to transform the systems of knowledge, culture, and values that individual’s hold, which facilitates the development of effective solutions to these challenges. consequently, the study focused on environmental culture attitude. various factors contribute to the effective improvement of environmental culture, which in turn increases the sustainability of any country. among those, sociodemographic characteristics play an important role in shaping environmental culture (karpudewan, 2021; sales et al., 2024). for example, several studies have shown that age can influence environmental concern, with younger generations often demonstrating greater environmental awareness and commitment to sustainability (harrison & carroll, 2021; karpudewan, 2021). gender has also been identified as a consistent determinant, with women typically expressing stronger pro-environmental attitudes than men (shutaleva et al., 2022). similarly, education is strongly correlated with environmental attitudes, as higher educational attainment tends to raise greater ecological mailto:eadam@kfu.edu.sa mailto:sdfaran@gmail.com agbioforum, 27(1), 2025 | 79 hamid & faran — environmental culture attitudes in saudi society: a field study on the industrial city of jubail literacy and concern (iluno, umoru, & bello, 2024). moreover, income levels affect individuals’ capacity and motivation to engage in sustainable behaviors, where both lowand high-income groups may differ significantly in their environmental priorities and actions (castaldellimaia & bhugra, 2022; li et al., 2022). despite the significance of these factors, there is a need of more specific research to assess how these variables interact within different socio-cultural settings. therefore, this research seeks to examine environmental culture attitudes through assessing the influence of key demographic factors, namely age, gender, education, and income on the individuals’ environmental orientations. various empirical studies have been conducted on environmental culture but prior studies still highlighted various gaps. for instance, some of the studies have been conducted on industry specific where highlighting that how environmental culture improve the performance or other key indicators (costa & opare, 2025; fayyaz et al., 2024; masyhuri, siswanto, & kurniawati, 2024; sahan, jaaffar, & osabohien, 2024; song & wei, 2025; yousaf et al., 2025) but these studies have limited attention on how demographic factors significantly improve the environmental culture positive attitude. further, prior studies also highlighted the combined effect of environmental culture with a limited attention on how demographic factors significantly changes the environmental cultural dimensional attitude of individuals (masyhuri et al., 2024; sanusi, suwarsi, & perkasa, 2025). therefore, this study contributed literature on various environmental cultural dimensions (environmental knowledge, environmental issues, environmental attitude, and environmental practices) effected from demographic factors. furthermore, prior studies in the field of environmental culture have majorly concentrated on other countries with a limited attention on saudi arabia (ayonovna, 2024; tam, 2025; yang et al., 2024). the kingdom of saudi arabia has prioritized environmental protection through its vision 2030, which outlines five strategies encompassing 64 initiatives aimed at restructuring the environmental sector to align with ecological diversity and the significant growth of sectors that affect the environment (aldosari, 2024; el-bastawisy, 2024). to fulfill its vision, saudi arabia must enhance and disseminate environmental knowledge within the community, encouraging both individuals and groups to actively engage in protecting the environment and conserving its resources while addressing potential environmental risks stemming from inappropriate behaviors (aldosari, 2024; el-bastawisy, 2024). in light of these considerations, this study aims to explore the attitudes in environmental culture within saudi society, specifically in the industrial city of jubail. this research objective has been divided into four sub-objectives below, 1. to assess the level of environmental knowledge among the residents of the industrial city of jubail, saudi arabia. 2. to evaluate the degree of concern regarding environmental issues among the residents of the industrial city of jubail, saudi arabia. 3. to elucidate the level of attitudes toward the environment among the residents of the industrial city of jubail, saudi arabia. 4. to investigate the extent of interest in environmental practices among the residents of the industrial city of jubail, saudi arabia. the significance of this study derives from its examination of a critical topic about the environment and the knowledge and information that community members possess regarding environmental conservation and protection. this research engages with an entire community, deliberately setting aside personal differences, as this collective plays an essential role in shaping the future and safeguarding the environment. the study emphasized the concept of environmental culture and its various dimensions within the community, highlighting its considerable importance in the daily lives of its members. furthermore, the growing global, regional, and local interest in environmental issues and strategies to address environmental challenges for the sake of sustainable development has prompted an increase in studies and research focused on environmental concerns. this study thus paves the way for future researchers to investigate the topic from previously unexplored perspectives. the study's findings may benefit environmental centers focused on protecting the environment and conserving of its resources. additionally, the results can guide policymakers in fostering an environmental culture within the community to preserve natural resources. the study further divided into four chapters: literature review, research methodology, data analysis and results, discussion and conclusion. literature review theoretical review the term "environmental culture" was first introduced in 1969 (roth, 1972). over time, the term evolved through messages and addresses by federal officials in the united states, reflecting an increasing concern for environmental issues, culture, and education aimed at enhancing environmental awareness and addressing pollution risks (roth, 1992). in other perspective, environmental culture refers to preparing citizens to adapt to global environmental changes, raising greater engagement in addressing environmental issues, and finding positive solutions. this concept involves equipping individuals with essential environmental knowledge, skills, and attitude (fraj, martínez, & matute, 2011; roth, 1970), which is enabling them to effectively integrate with their surroundings within a framework of environmental responsibility necessary for the preservation of the environment for both present and future generations (fraj et al., 2011). then, the concept of the environment encompasses the framework or domain in which humans exist, including air, water, soil, and all living and nonliving entities within these components (aldosari, 2024; el-bastawisy, 2024). it also considers climate, energy, sunlight, rainfall, winds, as well as social and technological elements (tam, 2025). environmental culture emerged as a modern approach in the 1970s, agbioforum, 27(1), 2025 | 80 hamid & faran — environmental culture attitudes in saudi society: a field study on the industrial city of jubail achieving consensus on its significance for raising sustainability within communities (yang et al., 2024). environmental culture encompasses the acquisition of behavioral and cognitive components through ongoing interaction with the environment and raising positive behaviors that empower individuals to engage appropriately with their surroundings and share these behaviors with others (suhartanto et al., 2024). it also involves preparing individuals to adapt to environmental changes and promoting active participation in addressing environmental challenges by equipping them with essential environmental knowledge, skills, and attitudes (uralovich et al., 2023). this preparation facilitates effective integration with their environment within a framework of environmental responsibility, ensuring the preservation of the environment for present and future generations (spínola, 2021). under the theory of structural-functional theory, environmental culture is a systemic perspective of society, viewing the environment as a system that fulfills fundamental life needs (parsons, 2017). it emphasizes the balance between living and non-living entities and the relationships between living beings and nature (parsons, 2017). within this framework, certain functional necessities must be addressed to ensure that the environment can continue to meet these needs without compromising stability and continuity (parsons, 2017). the theory aims to sustain social life patterns through shared cognitive orientations, role distribution, and adaptation to the environment, facilitated by norms and standards that govern behavior and socialization to achieve societal goals (plumwood, 2005). under the umbrella of environmental determination theory, that emphasized the significant influence of the natural environment on human behavior, suggesting that humans are largely passive in response to natural forces (darner, 2009). as a result, they must adapt to the limitations and potentials of their environment, under a central deterministic movement drawing from the environment to living beings and human societies (pelletier & aitken, 2014). the theory posits that cultural and social systems develop by physical conditions and ecological contexts, attributing variations among human societies to differences in environmental and geographical circumstances (pelletier & aitken, 2014). finally, philippe & vallerand (2008) asserted that "it is an educational process that highlights the relationship between humans and various environmental issues, emphasizing that it is acquired, allowing individuals and communities to address environmental challenges. heyd (2016) further defined that it is a set of ideas and behaviors focused on the rational use of resources and environmental protection, developed through environmental awareness that fosters ethical and behavioral understanding related to environmental risks. empirical studies various empirical studies have been conducted on the environmental culture. for example, huang et al. (2022) explored study to explain how personal values drives environmental concerns and behavioral commitment. the study results indicated that individuals who have environmental responsibility from a moral perspective then they are significantly contribute in environmentally sustainable activities. similarly, gonzález-ordóñez (2024) study also confirmed the role of cultural orientation in influencing environmental behavior across diverse populations. their findings showed that people embedded in communist cultures can adopt the environmentally friendly practices when they perceive social support or normative pressure which is reinforce that environmental culture is a key component of increasing market stability. yang et al. (2024) study further found that early exposure to nature and environmental education programs significantly influences long-term attitudes toward environmental stewardship. davari, nosrati, & kim (2024) also shown that how personal values improve the environmental culture. they found that personal values increase the environmental culture. al mamun et al. (2024) study also explained how increasing the knowledge of environmental is also lead to an increase the positive attitude of any individual towards the improvement of environmental culture. they also encouraged the further research to conduct a study on demographic factors to improve the sustainability of environment. these previous empirical studies highlighted that environmental culture was significantly effected from various factors while have limited attention to demographic factors. for example, blanco-mesa, auzaque rodríguez, & gutierrez ayala (2024) also found that university-educated individuals have significantly higher environmental awareness and concern compared to those with lower educational attainment. they also highlighted that education not only increases awareness to handle the environmental issues but it is also raises a critical thinking and a sense of moral responsibility toward the environment. amoahboampong (2025) research also revealed that people who have medium level of income significantly supported to the environmental policies and they are engaged in sustainable consumption practices, possibly because their financial stability enables them to prioritize non-material values and afford eco-friendly alternatives. however, this relationship can vary across cultural contexts where economic needs outweigh environmental priorities. on the other hand, feng, hou, & lan (2024) also conducted a study and found that females are being exhibited a more environmental responsible attitudes compare to males, which may be attributed to socialization processes that promote empathy and care. they also argued that incomes has a more complex relationship with environmental attitudes. more income levels individuals may possess deeper environmental awareness due to accumulated life experiences and witnessing long-term environmental changes (sergey et al., 2024). conversely, other study also suggested that lowincome level generations are more engaged with contemporary environmental movements and climate action due to their digital connectivity and educational exposure (kyriakopoulos, herbert, & piperopoulos, 2024). therefore, income-based differences in environmental attitudes may improve sustainability. scarcelli & farci (2024) research also found that younger age group have more concern towards environmental sustainability because these people are more engaged in green behavior activities it. their study also showed that agbioforum, 27(1), 2025 | 81 hamid & faran — environmental culture attitudes in saudi society: a field study on the industrial city of jubail generational shifts in environmental values could be attributed to increased environmental education and activism among youth. karatsiori (2025) study also found that younger respondents are more concentrated towards pro-environmental activities, which demonstrated the higher levels of concern of individuals towards the long sustainability. leach, joekes, & green (2025) study also found a positive and significant relationship between age and environmental attitude. they further highlighted that older individuals may exhibit more conservative environmental views, possibly due to lower exposure to modern ecological challenges during their formative years. study of ibrahim, asare, & owusu-sekyere (2025) also found that females have least intention towards environmental sustainability. they also recommended increasing the awareness of environmental sustainability, and females should focus on the environmental sustainability framework. gyurián nagy (2024) other research also found that women are significantly more likely to express concern about environmental risks and support environmental policies compared to men. they argued that women’s higher perception of risk and greater empathy toward ecological issues contribute to this gendered difference in environmental behavior. these prior studies highlighted the significance of demographic factors for improving environmental sustainability. these previous studies highlighting that environmental culture attitudes is being shaped from various demographic variables. therefore, a deeper understanding on these demographic factors is essential for designing an effective environmental culture attitude. therefore, study focused on to identify the environmental culture attitudes among residents of the industrial city of jubail, saudi arabia, and to determine if significant differences exist in their responses to personal variables. methodological approaches of the study the study employed the quantitative research approach. under the domain of quantitative research approach, social survey method is recognized as one of the most prevalent research methodologies, particularly within descriptive studies. this approach facilitates the collection of extensive data and information about the study topic to obtain accurate and comprehensive insights (gelo, braakmann, & benetka, 2008). therefore, current study utilized the social survey method due to its effectiveness in fulfilling the research objectives, particularly in identifying the relevant variables and analyzing the data collected through the research instrument using statistical techniques. this methodological framework enables the derivation of conclusions that can support the study's aims concerning environmental culture attitudes in jubail industrial city, saudi arabia. furthermore, cross sectional design was cross sectional because data collected on first time from the jubail resident’s industrial city of saudi arabia. this research design is more effective for the questionnaires based study (gelo et al., 2008). study sample and study instrument the study population encompasses all residents of jubail industrial city. given the challenges associated with conducting a comprehensive census of the entire population, a simple random sampling technique was employed to obtain the necessary data for the study. for checking the instrument appropriateness, the exploratory sample consisted of 30 respondents selected randomly from the residents of jubail industrial city, saudi arabia. this group was intentionally excluded from the main sample to assess the characteristics of the research instrument and its appropriateness for data collection. then an original sample was selected which represents a subsample of the population, containing specific elements selected for analysis. in this study, a simple random sample was drawn from the original population, comprising 613 respondents. the researcher developed a questionnaire for data collection, which underwent several phases of refinement and modification informed by pertinent literature and feedback from field experts. the questionnaire was subsequently evaluated and tested following its distribution to an exploratory sample. the instrument comprised two principal sections. the first section gathered personal data from the respondents, including variables such as gender, age, educational qualifications, and monthly income. the second section addressed the study's dimensions, containing a total of 39 items categorized into four primary areas: 1. environmental knowledge: this section included 10 items. 2. interest in environmental issues: this section also comprised 10 items. 3. attitudes toward the environment: this section contained 9 items. 4. environmental practices: this section included 10 items. the study's questionnaire was based on rensis likert's 1932 likert scale, utilizing a three-point scale that provides three response options for each statement. respondents were presented with each item, and for every statement, they indicated their level of agreement using the three options provided. to establish the criteria utilized in the study, the length of the response cells in the three-point likert scale was calculated by determining the range between the scale endpoints (3 1 = 2). this range was then divided by the highest value on the scale to derive the cell length, resulting in (2/3). this value was subsequently added to the lowest value on the scale (with the scale beginning at one) to ascertain the upper limit for the cell. accordingly, the lengths of the response cells were summarized as presented in the accompanying table 1. table 1: criteria used in the study. scale cell length relative weight level of agreement disagree 1 1.66 33.3% to 55.3% low somewhat agree greater than 1.66 2.33 greater than 55.3% to 77.7% moderate agree greater than 2.33 – 3 greater than 77.7% to 100% high agbioforum, 27(1), 2025 | 82 hamid & faran — environmental culture attitudes in saudi society: a field study on the industrial city of jubail content validity the concept of validity in research instruments pertains to "the accurate representation of the studied population, implying that the responses obtained from the questionnaire yield the information for which the questions were designed" (al-bahr and al-tanji, 2014, p. 14). the researcher presented the preliminary version of the study instrument to a panel of specialized experts to ensure the linguistic accuracy of the questionnaire, the relevance of the items to the dimensions outlined in the instrument, and the appropriateness of this tool for measuring the objectives associated with the study. feedback from the judges was carefully considered, resulting in necessary modifications, deletions, and additions to the items prior to the distribution of the final version of the questionnaire to the target sample. internal consistency validity internal consistency validity which refers to the extent to which each item in the questionnaire coherently aligns with the dimension to which it is associated (lim, 2024). the internal consistency of the questionnaire items was assessed using a sample of 30 respondents from the exploratory study. the internal consistency which consisted of correlation coefficient and crohnbach alpha which is presented in table 2 and 3 respectively. the following table 2 illustrates that the correlation coefficients for each item in dimension 1, "environmental knowledge," ranged from .311 to .564, all of which are statistically significant at the 0.01 level. similarly, the correlation coefficients for each item in dimension 2, "interest in environmental issues," ranged from .462 to .831, with all values also being significant at the 0.01 level. furthermore, the correlation coefficients for each item in dimension 3, "attitudes toward the environment," ranged from .393 to .732, all significant at the 0.01 level. lastly, the correlation coefficients for each item in dimension 4, "environmental practices," ranged from .546 to .734, with all values significant at the 0.01 level. this confirms that the items associated with the dimension of "environmental culture" are valid for the constructions they are intended to measure. table 2: correlation coefficients for internal consistency validity of the environmental culture scale. dimension 1: environmental knowledge dimension 2: interest in environmental issues dimension 3: attitudes toward the environment dimension 4: environmental practices no. correlation coefficient no. correlation coefficient no. correlation coefficient no. correlation coefficient 1 .311** 1 .462** 1 .393** 1 .695** 2 .526** 2 .718** 2 .647** 2 .550** 3 .378** 3 .831** 3 .556** 3 .673** 4 .504** 4 .739** 4 .679** 4 .546** 5 .456** 5 .772** 5 .621** 5 .728** 6 .564** 6 .738** 6 .732** 6 .701** 7 .506** 7 .798** 7 .719** 7 .654** 8 .400** 8 .826** 8 .624** 8 .703** 9 .341** 9 .659** 9 .665** 9 .734** 10 .420** 10 .601** 10 .630** (**)statistically significant at a significance level of 0.01 further researchers also employed the cronbach's alpha coefficient to assess the reliability of the questionnaire. the calculated cronbach's alpha values for each dimension of the questionnaire, as well as for the overall scale, were found to be 0.70 or higher, which is considered acceptable (peters, 2014). the following table presents these findings. table 3: cronbach's alpha coefficient for each dimension of the study and for the overall scale. dimension number of items cronbach's alpha value dimension 1: environmental knowledge 10 .715 dimension 2: interest in environmental issues 10 .896 dimension 3: attitudes toward the environment 9 .764 dimension 4: environmental practices 10 .837 overall scale 39 .888 it is evident from the preceding table that the reliability coefficients for the study dimensions ranged from .715 to .896, with the overall reliability coefficient for the scale being .888. these coefficients are deemed acceptable, thereby assuring the researcher of the reliability of the questionnaire when administered to the original "actual" sample of the study. results of the study demographic characteristics this section in table 4 shows the demographic characteristics of 613 respondents. of industrial city of jubail reflects a diverse population engaged in environmental culture. a majority of the participants were male (64.9%), indicating stronger male representation in the industrial context, which may influence perspectives on environmental practices and policy engagement. the largest age group was 25 to under 35 years (30.5%), followed by those under 25 years (23.2%), suggesting a youthful population that is more likely to be responsive to environmental awareness campaigns and sustainability initiatives. educationally, nearly half of the respondents held a bachelor’s degree (48.4%), while a substantial portion had postgraduate qualifications (29.9%), indicating a well-educated community capable of agbioforum, 27(1), 2025 | 83 hamid & faran — environmental culture attitudes in saudi society: a field study on the industrial city of jubail understanding and participating in environmentally responsible behavior. additionally, a considerable number of participants (34.1%) reported monthly incomes between 6,000 to 9,000 sar, aligning with middle-income earners who may have the economic stability to support environmentally friendly practices. this demographic profile highlighted a population with the potential for strong environmental consciousness and active involvement in sustainability efforts within jubail’s industrial and urban development. table 4: demographic characteristics. demographic variable category frequency (n) percentage (%) gender male 398 64.9% female 215 35.1% total 613 100% age group under 25 years 142 23.2% 25 to < 35 years 187 30.5% 35 to < 45 years 128 20.9% 45 to < 55 years 101 16.5% 55 years and above 55 9.0% total 613 100% educational qualification diploma or lower 133 21.7% bachelor’s degree 297 48.4% postgraduate degree 183 29.9% total 613 100% monthly income (sar) less than 3,000 84 13.7% 3,000 to < 6,000 153 25.0% 6,000 to < 9,000 209 34.1% 9,000 and above 167 27.2% total 613 100% descriptive statistics descriptive findings demonstrated a generally strong environmental culture among respondents in the industrial city of jubail, saudi arabia based on a 3-point scale. the highest mean score was recorded for environmental practices (2.86 out of 3) which is indicating that participants frequently engage in environmentally responsible behaviors. this was followed by attitudes toward the environment (2.81) which is reflecting consistently positive views and values regarding environmental protection. environmental knowledge (2.66) suggests that respondents have a solid understanding of environmental concepts, while interest in environmental issues (2.63), though still high, was the lowest among the four dimensions and showed the greatest variability (sd = 0.415), which is indicating differences in personal engagement levels. overall, with all mean scores approaching the maximum of 3, the results reflect a well-developed environmental awareness and behavior among the participants, though there remains room for enhancing deeper interest and knowledge in environmental issues. the results is predicted in table 5 below, table 5: descriptive statistics. dimension no. of items mean score (out of 3) standard deviation (sd) environmental knowledge 10 2.66 0.244 interest in environmental issues 10 2.63 0.415 attitudes toward the environment 9 2.81 0.257 environmental practices 10 2.86 0.241 overall scale 39 — — independent sample t-test results research objective 1 results the results show that age, education, and income have a statistically significant impact on environmental perceptions, while gender does not. particularly, there was no statistically difference in the males and females (t = 0.734, p = 0.463), which is indicating gender does not influence environmental attitudes. in contrast, age groups under 25 and 25–34 scored significantly lower compared to the 35–44 and 45–54 groups, with t-values of 2.224 and 2.115 and p-values of 0.027 and 0.035 respectively, which highlighting that environmental awareness increases with age. education also showed a significant difference, as respondents with a bachelor’s degree scored higher than those with a diploma or lower (t = 3.642, p = 0.008), which is suggesting education enhances environmental understanding. finally, income level significantly influenced environmental perceptions, with those earning 6,000–8,999 sar scoring higher than other income groups (t = 4.215, p = 0.021). these findings underline the role of socio-demographic factors in shaping environmental culture in the industrial city of jubail in table 6. agbioforum, 27(1), 2025 | 84 hamid & faran — environmental culture attitudes in saudi society: a field study on the industrial city of jubail table 6: results for environmental knowledge. demographic variable group comparison mean difference t-value p-value significance gender male vs. female 0.06 0.734 0.463 not significant age under 25 vs. 35–44, 45–54 +0.20 to +0.22 2.224 0.027 significant 25–34 vs. 35–44, 45–54 +0.15 to +0.18 2.115 0.035 significant education diploma or lower vs. bachelor’s +0.14 3.642 0.008 significant monthly income 6,000–8,999 sar vs. all other groups +0.20 to +0.30 4.215 0.021 significant research objective two results this section shows the results of the environmental issues of statistical differences in the industrial city of jubail. gender differences were significant, with males scoring higher than females (mean difference = +0.10, t = 2.875, p = 0.005), which suggests greater environmental concern among male respondents. age also showed a significant effect where participants under 25 had lower scores compared to those aged 35–44 and 45–54 (mean difference = +0.20, t = 2.682, p = 0.016), and those aged 25–34 scored lower than the 45–54 age group (mean difference = +0.15, t = 2.103, p = 0.037), which is indicating that environmental awareness tends to increase with age. regarding education, individuals holding a bachelor’s degree had significantly higher scores than those with a diploma or lower (mean difference = +0.17, t = 2.932, p = 0.039), highlighting the positive role of higher education. finally, monthly income played a significant role: respondents earning less than 3,000 sar scored lower than those in the 3,000–5,999 sar and ≥9,000 sar brackets (mean difference = +0.15 to +0.20, t = 3.054, p = 0.010), and those earning 6,000–8,999 sar had the highest environmental scores compared to all other groups (mean difference = +0.20, t = 3.742, p = 0.012). these results confirm that environmental culture is closely tied to socio-demographic characteristics in the jubail community. above result is depicted in table 7. table 7: interest in environmental issue results. demographic variable group comparison mean difference t-value p-value significance gender male vs. female +0.10 2.875 0.005 significant age under 25 vs. 35–44, 45–54 +0.20 2.682 0.016 significant 25–34 vs. 45–54 +0.15 2.103 0.037 significant education diploma or lower vs. bachelor’s +0.17 2.932 0.039 significant monthly income < 3,000 sar vs. 3,000–5,999 & ≥9,000 sar +0.15 to +0.20 3.054 0.010 significant 6,000–8,999 sar vs. all other groups +0.20 3.742 0.012 significant research objective three results below in table 8 there was no significant difference between males and females (mean difference = +0.07, t = 0.982, p = 0.326), which indicates that both genders share a comparable level of interest in environmental concerns. however, age was a significant factor where participants were under 25 years old had lower interest scores compared to all other age groups (mean difference = +0.15 to +0.25, t = 3.112, p = 0.008), and those aged 25–34 also scored lower than those aged 45–54 (mean difference = +0.13, t = 2.213, p = 0.042). regarding education, individuals with a bachelor’s degree reported greater interest than those with diploma or lower qualifications (mean difference = +0.18, t = 2.111, p = 0.041), while postgraduates demonstrated even higher levels of interest than all other groups (mean difference = +0.20 to +0.25, t = 2.810, p = 0.015). monthly income also revealed a significant association: those earning 6,000–8,999 sar had higher levels of environmental interest than other income groups (mean difference = +0.15 to +0.30, t = 2.575, p = 0.024). these findings emphasize that age maturity, higher education, and moderate-to-high income levels positively impact public interest in environmental issues. table 8: results for attitudes toward the environment. demographic variable group comparison mean difference t-value p-value significance gender male vs. female +0.07 0.982 0.326 not significant age under 25 vs. all age groups +0.15 to +0.25 3.112 0.008 significant 25–34 vs. 45–54 +0.13 2.213 0.042 significant education diploma or lower vs. bachelor’s +0.18 2.111 0.041 significant postgraduate vs. all groups +0.20 to +0.25 2.810 0.015 significant monthly income 6,000–8,999 sar vs. all other groups +0.15 to +0.30 2.575 0.024 significant research objective four results below in table 9 predicted results shown the difference between males and females was marginally significant (mean difference = +0.10, t = 1.965, p = 0.085), suggesting a slight tendency for males to have more positive environmental attitudes. age was a strong predictor: respondents under 25 years old scored significantly lower than those aged 35–44 and 45–54 (mean difference = +0.20 to +0.30, t = 4.112, p = 0.001), and those aged 25–34 also scored lower than 45–54year-olds (mean difference = +0.15, t = 2.953, p = 0.009). regarding education, postgraduate respondents showed significantly more positive environmental attitudes than all other educational groups (mean difference = +0.18 to +0.25, t = 3.587, p = 0.020). monthly income also had a notable influence: individuals earning 6,000–8,999 sar had agbioforum, 27(1), 2025 | 85 hamid & faran — environmental culture attitudes in saudi society: a field study on the industrial city of jubail significantly higher attitude scores compared to those earning 3,000–5,999 sar and ≥9,000 sar (mean difference = +0.15 to +0.30, t = 4.229, p = 0.021), and those earning < 3,000 sar scored lower than individuals earning ≥9,000 sar (mean difference = +0.20, t = 3.320, p = 0.030). these findings highlight that greater age maturity, higher education levels, and moderate-to-high income are associated with more positive environmental attitudes. table 9: results for environmental practices. demographic variable group comparison mean difference t-value p-value significance gender male vs. female +0.10 1.965 0.085 significant age under 25 vs. 35–44, 45–54 +0.20 to +0.30 4.112 0.001 significant 25–34 vs. 45–54 +0.15 2.953 0.009 significant education postgraduate vs. all others +0.18 to +0.25 3.587 0.020 significant monthly income 6,000–8,999 sar vs. 3,000–5,999 & ≥9,000 sar +0.15 to +0.30 4.229 0.021 significant < 3,000 sar vs. ≥9,000 sar +0.20 3.320 0.030 significant discussion this study seeks to identify the environmental culture attitudes among residents of the industrial city of jubail, saudi arabia, and to determine if significant differences exist in their responses to personal variables. the independent sample test results show that environmental knowledge among the respondents varies based on the demographic groups with respect to age, education, and income levels. the study results highlighted that environmental culture significantly changes across different demographic groups like age, education, gender and income level. from age perspective, older individuals demonstrated a stronger understanding of the environmental issues. traditionally, this is due to the accumulated life experience and have exposure related to environmental issues. this result is aligned with nightingale (2006), who reported that older adults often exhibit higher environmental knowledge due to long-term exposure and lived experience. similarly, individuals with higher levels of education, displayed a more comprehensive grasp of environmental concepts. this finding highlighted that formal education played an integral role for shaping the ecological matters. this is aligned with the study of spínola (2021), who emphasized the strong correlation between educational attainment and environmental knowledge. moreover, those in middleincome brackets also showed higher environmental knowledge because they are directly affected by urban environmental challenges and thus more engaged with related information. this is supported with the study of white et al. (2024), who also highlighted that socioeconomic status often mediates access to environmental resources and learning. in a city like jubail, which is a hub for industrial activities in saudi arabia, having a wellinformed public is essential to ensuring sustainable development. these insights emphasize the necessity of integrating environmental content into educational programs and public awareness campaigns to build a more environmentally literate society capable of making responsible decisions for future generations. further results in the environmental issues, older adults expressed more consistent interest in environmental matters, which are possibly due to heightened awareness of long-term consequences and a greater sense of responsibility. this finding is consistent with the work of leach et al. (2025), who found that age positively relates with concern for environmental problems. in education, postgraduate degree holders have a greater intention towards environmental issues which is suggesting that higher education not only imparts knowledge but also raises a sense of commitment toward environmental stewardship. this relationship is supported by leach et al. (2025), who showed that deeper educational exposure leads to more intrinsic motivation for environmental protection. on the other hand, from gender perspectives, males have a greater interest in the environmental issues as compares to females. this shows that in saudi arabia males have more involvement in environmental policymaking or industrial operations in saudi arabia. nwafo (2024) supported the same findings who observed that in some societies, men tend to align more with external environmental engagement, particularly in policy or activism. income level also influenced interest, with middle-income earners showing greater attentiveness, perhaps due to a balanced exposure to both urban challenges and access to resources a pattern. these findings hold particular significance in the context of jubail, where growing industrialization demands not only regulatory frameworks but also a population that is genuinely interested and involved in environmental protection. encouraging such interest through community dialogues, environmental education in schools, and citizen engagement programs can increase the groundwork for a more responsible environmental culture. the study further revealed meaningful differences in environmental attitudes where results highlighted that older participants generally exhibited more favorable attitudes toward environmental protection, possibly reflecting a long-term perspective on ecological sustainability. the findings highlighted with mazhar & iqbal (2025), who noted that older age groups tend to prioritize long-term environmental well-being over immediate convenience. education was another strong predictor of environmental attitude, with individuals holding advanced degrees demonstrating a more empathetic and proactive stance toward environmental preservation. supporting this, mazhar & iqbal (2025) found that environmental education raises stronger proenvironmental attitudes and enhances emotional connections to nature. income differences where those in middle-income categories tended to hold stronger environmental values because they are both economically stable and environmentally conscious, without the burden agbioforum, 27(1), 2025 | 86 hamid & faran — environmental culture attitudes in saudi society: a field study on the industrial city of jubail of either extreme poverty or excessive wealth that can detach individuals from daily ecological concerns. this is in line with the findings of boussaada, hakimi, & karmani (2025), who emphasized the role of value-belief systems which are influenced by socio-economic standing in shaping environmental concern. these trends are particularly relevant to jubail, where population growth and industrial expansion present growing challenges to environmental integrity. positive environmental attitudes are crucial for building public support for sustainability initiatives and encouraging behavioral change. literature widely supports the idea that favorable environmental attitudes are essential for the successful implementation of green policies (nguyen, shami, & li, 2025). therefore, cultivating such attitudes through public engagement and ethical leadership should be a priority in environmental governance in jubail. environmental practices the actual behaviors individuals undertake to protect the environment also showed variation across age, education, income, and to a lesser extent, gender. older adults were more likely to engage in environmentally responsible behaviors, such as recycling, conserving water, and reducing energy consumption. this may stem from both life experience and a greater sense of civic responsibility. karatsiori (2025) study similarly found that older individuals are more consistent in performing environmentally friendly actions. education again emerged as a key factor with those holding higher degrees being more inclined to translate environmental knowledge and attitudes into tangible actions. this supports the findings of davari et al. (2024), who emphasized that education, particularly when focused on environmental issues strongly influences behavioral outcomes. income appeared to influence practices as well as with middle-income earners being more proactive which is possibly due to a combination of financial capacity and awareness. this is consistent with isaacson (2024), who observed that economic resources paired with environmental concern often result in greater environmental action. these findings are particularly significant in the context of jubail, where environmental degradation linked to industrial activity makes daily sustainable practices even more critical. practical engagement at the individual and household level can significantly contribute to broader environmental goals, especially when institutional policies are still evolving. prior research has consistently shown that behavior change is most effective when it aligns with knowledge, values, and economic feasibility (odia & ogbemudiare, 2025). therefore, initiatives in jubail should focus on enabling and encouraging sustainable behaviors through public infrastructure, incentives, and widespread awareness campaigns that make environmental action accessible to all demographic groups. implications and recommendations the study has several theoretical and practical implications based on the study findings. the first theoretical implication contributed an environmental psychology and socio-environmental behavior literature through reinforcing the role of demographic factors, particularly age, education, and income in shaping environmental knowledge, attitudes, interest, and practices. the study validates previous theoretical assumptions, such as those in the rbv theory, which suggest that demographic and cognitive variables are predictors of pro-environmental behavior. secondly, the findings offer empirical support to the notion that environmental knowledge and attitudes are interrelated and influenced by life experiences and formal education, thus expanding the theoretical discourse on how environmental literacy develops over time. thirdly, the study highlights a need to further conceptualize the socioeconomic status on environmental practices, which remains under-explored in the middle eastern context. finally, by examining multiple dimensions namely knowledge, attitudes, interest, and practices, this study presents a multidimensional model of environmental culture that can be adapted and tested in future research across industrial cities globally. first practical implication is that this study emphasizes the importance of targeted environmental education, especially for younger, less educated, and lower-income groups in jubail. raising interventions in schools, vocational training programs, and public outreach campaigns can bridge knowledge gaps and stimulate early environmental awareness. secondly, study findings contributed to help to policymakers in jubail should integrate environmental content into adult education and community awareness programs, particularly targeting male and middle-income populations who demonstrate higher environmental engagement. thirdly, study results also helps to government and industrial stakeholders that they must promote behavioral change through practical support such as recycling facilities, energy-saving incentives, and urban green initiatives that align with the daily lives of residents. finally, a city-wide participatory framework that encourages environmental stewardship like community forums, environmental clubs, and citizen science programs should be properly established to translate attitudes and knowledge into sustainable practices. these actions will raises a more environmentally conscious population capable of supporting the city's longterm sustainability goals. with the significant contributions, research also offered some recommendations that need to be addressed in further research. first recommendation is that companies there should be properly educated to the citizens about the existing environmental legislation and laws, and enforce them rigorously to reduce environmental violations by individuals and institutions. secondly, there should also be an enhancement of environmental communication, which could activate the role of environmental communication by continuing environmental awareness campaigns to instill an environmental consciousness among citizens. lastly, it is also recommended that there should be a proper integration of environmental education that could introduce an environmental culture or education into the educational system to cultivate a generation that is engaged, knowledgeable, and convinced of the necessity of environmental conservation. agbioforum, 27(1), 2025 | 87 hamid & faran — environmental culture attitudes in saudi society: a field study on the industrial city of jubail conclusion and suggestions for future research this study seeks to identify the environmental culture attitudes among residents of the industrial city of jubail, saudi arabia, and to determine if significant differences exist in their responses to personal variables. the findings indicate a high level of agreement among residents regarding various aspects of environmental culture, including environmental knowledge, concern for environmental issues, attitudes toward the environment, and environmental practices. the statistically significant differences were observed in the average responses related to concern for environmental knowledge, environmental issues, and interest in environmental practices of jubail city of saudi arabia. the study findings offer empirical support to the notion that environmental cultural attitudes are interrelated and influenced by demographic factors which is expanding the theoretical discourse on how environmental literacy develops over time. the researchers suggested several recommendations: enhancing public awareness of existing environmental laws and regulations and rigorously enforcing them to mitigate environmental violations by individuals and institutions; strengthening the role of environmental communication through continuous awareness campaigns to cultivate an environmental consciousness among citizens; and promoting active citizen participation in all initiatives aimed at reducing pollution sources. the study still has some limitations. firstly, study not address the structural equation modeling. therefore, future research to be conducted on a complex model using regression analysis in structural equation modeling. further, the study focused on one country while ignoring the developed countries. therefore, further research to be conduct on developed country. lastly, study not conducted on using moderator or mediator. therefore, future research might be conducted with a moderating or mediating variable. acknowledgement this work was supported by the deanship of scientific research, vice presidency for graduate studies and scientific 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(2025). environmental culture, green human resource management, green innovation, and environmental performance: the moderating role of corporate social responsibility. journal of environmental planning and management, 68(8), 1858-1880. doi: https://doi.org/10.1080/ 09640568.2023.2298263 https://doi.org/10.1177/10963480231220266 https://doi.org/10.4236/ce.2021.125072 https://doi.org/10.4236/ce.2021.125072 https://doi.org/10.1080/13602381.2022.2082715 https://doi.org/10.1080/13602381.2022.2082715 https://doi.org/10.1016/j.copsyc.2024.101986 https://doi.org/10.22124/cjes.2023.7155 https://doi.org/10.3390/ijerph21111480 https://doi.org/10.1016/j.jenvp.2021.101748 https://doi.org/10.1016/j.jenvp.2021.101748 https://doi.org/10.1016/j.jclepro.2024.142211 https://doi.org/10.1080/09640568.2023.2298263 https://doi.org/10.1080/09640568.2023.2298263 agbioforum, 26(3): 148-155. ©2024 agbioforum xuan et al — biocontrol potential of different entomopathogenic fungi and neem oil for control of sucking insects and two-spotted... biocontrol potential of different entomopathogenic fungi and neem oil for control of sucking insects and two-spotted spider mites in vegetables trinh thi xuan* plant protection department, college of agriculture, can tho university, can tho city, vietnam. orcid id: https://orcid.org/0009-0002-0513-79222 email: trinhthixuan@ctu.edu.vn cao thi tuyet mai an giang university, long xuyen city, an giang, vietnam. orcid id: https://orcid.org/0009-0008-5434-6302 email: caothituyetmai2010@gmail.com nguyen hong ung tra vinh university, tra vinh, vietnam. orcid id: https://orcid.org/0009-0003-2488-0583 email: nghongung@tvu.edu.vn lam thi xuan mai plant protection department, college of agriculture, can tho university, can tho city, vietnam. orcid id: https://orcid.org/0009-0007-5973-469x email: ltxmai@ctu.edu.vn pham van hiep dong thap university, cao lanh, dong thap, vietnam. orcid id: https://orcid.org/0009-0004-2934-8964 email: pvhiep@dthu.edu.vn nguyen thi kieu bac lieu university, bac lieu, vietnam.x orcid id: https://orcid.org/0009-0008-5365-9331 email: ntkieu@blu.edu.vn pham kim son plant protection department, college of agriculture, can tho university, can tho city, vietnam. orcid id: https://orcid.org/0009-0004-9194-5719 email: pkson@ctu.edu.vn greenhouse vegetable crops are significantly affected by infestations from three major groups of harmful sucking insects: aphids (aphis gossypii), whiteflies (bemisia tabaci), and twospotted spider mites (tetranychus urticae). aim: the study aimed to assess the effectiveness of entomopathogenic fungi, including metarhizium anisopliae, beauveria bassiana, and paecilomyces fumosoroseus, both individually and in combination with neem oil, against these pests. when treatments were applied six days prior to testing, all entomopathogens at a concentration of 100,000 spores per milliliter resulted in 84% mortality of t. urticae, a. gossypii, and b. tabaci. higher doses of neem oil, when combined with entomopathogenic fungi, proved effective in controlling insect pests. the combination of entomopathogenic fungi at a concentration of 1 x 10⁵ spores/ml and 1% neem oil in a 1:1 ratio exhibited significantly greater pest elimination success compared to the individual treatments. specifically, the combination of m. anisopliae and neem oil (1:1) achieved 100% mortality of t. urticae and a. gossypii, while p. fumosoroseus with neem oil (1:1) was effective against b. tabaci six days post-treatment. this research demonstrated that combining entomopathogenic fungi with neem oil in a 1:1 ratio proved more effective than applying them individually. the study also highlighted the compatibility of these treatments, with all experimental samples resulting in mortality rates exceeding 100%. keywords: biocontrol, entomopathogenic fungi, neem oil, sucking insects, two-spotted spider mite. introduction in recent times, modifications in farming techniques, the progression of climate change, and the increased utilisation of input-intensive, high-yield crop varieties have significantly altered pest dynamics in the mekong delta region of vietnam. these shifts have notably impacted vegetable ecosystems and orchards. changes in both environmental and ecological parameters have contributed to the emergence of several insect pests and mites, which previously posed minimal threats to vegetable production in the region, as pressing concerns across various localities in the country (deguine et al., 2023; van mele et al., 20010). among these, sucking insect pests and twospotted spider mites, specifically aphis gossypii, bemisia tabaci, and tetranychus urticae, have gained recognition as critical constraints to vegetable cultivation not only in vietnam but also globally (van mele, cuc, & van huis, 2010; van mele et al., 20010). these pests are known for their polyphagous nature and feed on a wide spectrum of host plants such as cabbage, tomatoes, eggplants, and ornamental species like roses and lilies. their geographical distribution spans extensively worldwide, with higher population densities typically recorded in temperate climates, which also exhibit greater species diversity than tropical zones (żyła, homan, & wegierek, 2017). in response to escalating pest infestations, farmers have resorted to frequent and heavy application of insecticides. this approach has led to several adverse outcomes, including the resurgence of targeted pests, the development of insecticide resistance, and the outbreak of secondary pests. additionally, the residual presence of chemical pesticides in agricultural produce, water sources, and beverages has given rise to severe health and environmental repercussions. these include contamination of groundwater, human health hazards, and the mortality of non-target organisms such as pollinators and beneficial insects (ambethgar, 2009; deguine et al., 2023; halder, divekar, & rani, 2021; van der sluijs et al., 2013). in this context, biopesticides offer a sustainable alternative by minimising dependency on synthetic chemicals (deguine et al., 2023). entomopathogenic fungi (epfs) have demonstrated considerable efficacy in reducing pest populations across a diverse range of agricultural systems. species such as metarhizium anisopliae, beauveria bassiana, and https://orcid.org/0009-0002-0513-79222 mailto:trinhthixuan@ctu.edu.vn https://orcid.org/0009-0008-5434-6302 mailto:caothituyetmai2010@gmail.com https://orcid.org/0009-0003-2488-0583 mailto:nghongung@tvu.edu.vn https://orcid.org/0009-0007-5973-469x mailto:ltxmai@ctu.edu.vn https://orcid.org/0009-0004-2934-8964 mailto:pvhiep@dthu.edu.vn https://orcid.org/0009-0008-5365-9331 mailto:ntkieu@blu.edu.vn https://orcid.org/0009-0004-9194-5719 mailto:pkson@ctu.edu.vn agbioforum, 26(3), 2024 | 149 xuan et al — biocontrol potential of different entomopathogenic fungi and neem oil for control of sucking insects and two-spotted... paecilomyces fumosoroseus are well-documented for their pest control potential. studies focusing on the biological control of insect pests using epfs have reported high levels of effectiveness, targeting up to 150 insect species. the most widely utilised biocontrol strains originate from four primary hypocrealean fungal species: m. anisopliae, b. bassiana, isaria fumosorosea, and b. brongniartii. initial commercial trials have likely enhanced these success rates. however, a major limitation of epfs lies in their relatively slow mode of action, as the time required to achieve insect mortality surpasses that of conventional chemical agents. this drawback can be mitigated by integrating epfs with faster-acting compounds in pest management systems (bitsadze et al., 2013). the fungal pathogen m. anisopliae has shown effectiveness against more than 200 insect pest species. research by gonzález-mas et al. (2019) identified significant control outcomes for a. gossypii, two-spotted spider mites (tssm), and other related mite species. further evidence from studies such as cakmak et al. (2009) confirms that, following cuticular penetration, epf conidia rapidly colonise the insect haemocoel, subsequently proliferating and sporulating within the host as well as on its external surface (chandler, davidson, & jacobson, 2005). the success of epfs in controlling tssm and other sucking insects is influenced by the fungal strain, the concentration of the inoculum, and prevailing environmental conditions. azadirachta indica a. juss (commonly known as neem) has gained widespread application in pest control due to its efficacy against multiple insect species, accessibility, and cost-effective production. efforts have been made to employ biocontrol agents and botanicals in equal proportions to assess their compatibility and maximise pest control outcomes (gatarayiha, laing, & miller, 2010). the co-application of fungal biopesticides and neem oil has emerged as a promising strategy (ullah & lim, 2015). this integrated approach enhances both economic viability and environmental sustainability compared to chemical insecticides (bugeme et al., 2014). moreover, there are no recorded cases of resistance development to these biological control methods, and they are considered environmentally safe. accordingly, the present study aimed to investigate the effectiveness of selected entomopathogenic fungi, neem oil, and their low-concentration combinations in suppressing a. gossypii, b. tabaci, and t. urticae, as part of a biologically based pest management strategy. materials and methods insect collection and rearing of a. gossypii, b. tabaci, and t. urticae the present study involved the collection of sucking insect species from eggplant and tomato fields that were free from pest infestation and insecticide exposure in can tho city, vietnam. the identified pests included aphids (aphis gossypii), whiteflies (bemisia tabaci species), and twospotted spider mites (tetranychus urticae). a research plot maintained by the university was utilised for this purpose. seedlings were grown under regulated conditions in plastic pots with a diameter of 15 cm, using a sandy loam and organic matter mixture at a 2:1 ratio. the growth environment was maintained at a temperature of 25 ± 1°c with a relative humidity of 65 ± 10%. the pots were enclosed to facilitate the natural reproduction of aphids, whiteflies, and spider mites along with their respective nymphs, ensuring the absence of insecticidal interference. for the bioassay trials, second and third instar nymphs derived from the offspring of the aforementioned insect species were employed. preparation of concentration of entomopathogenic fungi and neem oil the fungal isolates beauveria bassiana ctubb28, metarhizium anisopliae ctuma01, and paecilomyces fumosoroseus ctupae025 were cultured on sday3 medium (sabouraud dextrose agar yeast), which comprised 40 g of dextrose, 10 g of peptone, 10 g of yeast extract, 20 g of agar, 0.5 g of magnesium sulphate (mgso₄), 1.0 g of monopotassium phosphate (kh₂po₄), and 1,000 ml of distilled water. the cultures were incubated at a constant temperature of 25°c for a duration of 14 days. upon completion of the sporulation phase, conidia were collected using an inoculation loop, washed with sterile distilled water, and filtered through a double layer of gauze to remove any residual hyphal structures. to attain the desired concentrations for experimental application, conidial suspensions were prepared in a 0.01% tween 80 solution. in accordance with the germination assessment procedure outlined by ansari & butt (2011), conidial viability was confirmed to exceed 90% across all evaluations. neem oil emulsions were formulated by blending the oil with an emulsifying agent based on tritonx-100. bioassay bioassays for aphids and whiteflies were carried out, while assessments involving tssm were performed using petri dish setups. in these experiments, leaves from eggplant plants were arranged with the abaxial (underside) surface facing upwards, resting on a bed of moistened cotton wool. the petioles of the leaves were inserted into the cotton layer to preserve turgidity and sustain adequate moisture levels throughout the testing period. effect of different doses of neem oil against aphids, whiteflies, and tssm five different concentrations of neem oil (1%, 2%, 3%, 4%, and 5%) were prepared, with each concentration being replicated three times. a total of 90 nymphs were assigned to each treatment group and placed in separate petri dishes, each 9 cm in diameter. the mortality rates of aphids, whiteflies, and tssm were observed individually at 24hour intervals over a six-day period. bioassay of entomopathogenic against aphids, whiteflies, and tssm the fungal strains beauveria bassiana, metarhizium anisopliae, and paecilomyces fumosoroseus were prepared at four different concentrations: 1 × 10⁴, 1 × 10⁵, 1 × 10⁶, and 1 × 10⁷ conidia/ml. each concentration was tested in agbioforum, 26(3), 2024 | 150 xuan et al — biocontrol potential of different entomopathogenic fungi and neem oil for control of sucking insects and two-spotted... triplicate. for each treatment, 75 nymphs were placed into individual petri dishes, each with a diameter of 9 cm. the mortality of aphids, whiteflies, and two-spotted spider mites was assessed separately at 24-hour intervals over a six-day period. bioassay of neem oil and mix with entomopathogenic against aphids, whiteflies, and tssm a total of thirty insect samples were placed individually into separate petri dishes, each with a diameter of 9 cm. three independent trials were conducted for each experimental condition. the seven experimental groups were as follows: a1: neem oil alone; a2: m. anisopliae; a3: b. bassiana; a4: p. fumosoroseus; a5: m. anisopliae combined with neem oil (1:1); a6: b. bassiana combined with neem oil (1:1); a7: p. fumosoroseus combined with neem oil (1:1); and a control group treated with water. the application method involved the use of potter's tower, applying different concentrations of neem oil mixed with entomopathogenic fungi and a 1:1 ratio of neem oil for 10 seconds at a rate of 4,000 g/cm². after spraying, the pots containing the treated insects were dried using a fan. the bioassays were performed under controlled laboratory conditions, with temperatures maintained at 25 ± 1°c and a relative humidity of 70 ± 5%. data analysis daily observations were conducted to record the number of deaths among aphids, whiteflies, and tssm. abbott’s formula was employed to adjust for control group mortality. the data were subsequently analysed using probit analysis to calculate the median lethal concentration (lc50) and median lethal time (lt50), with statistical computations carried out using the statistical package for the social sciences. additionally, the cumulative corrected mortality percentages for each fungal treatment were subjected to analysis of variance (anova), and treatment means were compared using duncan’s multiple range test (dmrt). c (%) = 𝐴−𝐵 𝐴 × 100 where: c = corrected mortality; a = average number of pests (aphid, whitefly, and tssm) in the control group; b = average number of pests (aphid, whitefly, and tssm) in the treatment group. results and discussion effect of range dose of neem oil against two kinds of sucking insects and tssm the maximum biological efficacy under laboratory conditions was recorded daily following treatment. the results indicated that, after six days, the treatment with 5% neem oil exhibited the highest efficacy against both sucking insects and two-spotted spider mites figure. 1. the toxicological effects of varying doses of neem oil and their interactions with the nymphs of t. urticae, a. gossypii, and b. tabaci are illustrated in figure. 1. for t. urticae, the highest nymph mortality rate (74.3%) was recorded at a 5% dose, though this was not statistically significant when compared to the 4% neem oil dose (62.7%). in contrast, the lowest mortality (45.7%) occurred with a 1% neem oil dose figure. 1. nymphs of a. gossypii displayed high susceptibility to neem oil at all concentrations, with mortality rates of 93.3%, 96.7%, and 100% observed at 3%, 4%, and 5%, respectively. furthermore, the mortality rate of b. tabaci was found to be 90.3% at the 5% dose, which was statistically distinct from the other doses. figure 1: corrected mortality in t. urticae, a. gossypii, and b. tabaci after 6 days of application of neem oil at different doses under laboratory conditions. percent mortality of sucking insects and tssm to entomopathogenic fungi * t. urticae table 1 illustrates that the mortality percentage of nymphs was 60.0%, 67.6%, and 68.6% after the fifth day for m. anisopliae, b. bassiana, and p. fumosoroseus, respectively, at a concentration of 1 × 10⁷ spores/ml. by the sixth day of infection, the mortality rates for m. anisopliae, b. bassiana, and p. fumosoroseus ranged from 66.7% to 84.8%, 56.2% to 85.7%, and 60.0% to 85.7%, respectively. the results indicated that all entomopathogenic fungi at the 1 × 10⁷ spores/ml concentration were associated with a mortality rate exceeding 84% on the sixth day post-treatment. agbioforum, 26(3), 2024 | 151 xuan et al — biocontrol potential of different entomopathogenic fungi and neem oil for control of sucking insects and two-spotted... * a. gossypii table 1 shows that the highest nymph mortality was recorded with p. fumosoroseus at a concentration of 1 × 10⁷ spores/ml, resulting in 78.3% mortality, followed by m. anisopliae at 68.3%, and b. bassiana at 66.7% at the same concentration. by the sixth day of treatment, fungal applications at 1 × 10⁷ spores/ml reached peak mortality rates, ranging from 85.0% to 91.7% under controlled laboratory conditions. * b. tabaci according to table 1, m. anisopliae at a concentration of 1 × 10⁷ spores/ml resulted in 50.0% nymph mortality by the fifth day post-infection. at the same concentration, b. bassiana caused 53.3% mortality, while p. fumosoroseus achieved 71.7%. by the sixth day, mortality rates had increased, with m. anisopliae reaching 88.3%, and p. fumosoroseus ranging from 91.7% to 93.3% at concentrations of 1 × 10⁶ and 1 × 10⁷ spores/ml, respectively. table 1: percentage mortality of nymphs of sucking pests and two-spotted spider mites (tssm) at various time intervals following exposure to entomopathogenic fungi (epf) under controlled conditions of 25 ± 1°c and 70 ± 5% relative humidity. treatments doses (spores/ml) corrected mortality (%) t. urticae a. gossypii b. tabaci 4th dat 5th dat 6th dat 4th dat 5th dat 6th dat 4th dat 5th dat 6th dat m. anisopliae d1 27.6 48.6 66.7 35.0 51.7 76.7 13.3 28.3 70.0 d2 35.2 50.5 78.1 40.0 55.0 85.0 16.7 41.7 78.3 d3 39.1 52.4 82.9 46.7 61.7 85.0 23.3 51.7 91.7 d4 44.8 60.0 84.8 50.0 68.3 88.3 26.7 61.7 93.3 b. bassiana d1 29.5 38.1 56.2 25.0 48.3 68.3 11.7 18.3 70.0 d2 32.4 49.5 68.6 28.3 53.3 78.3 13.3 23.3 73.3 d3 41.9 61.0 76.2 31.7 60.0 81.7 15.0 41.7 86.7 d4 49.5 67.6 85.7 33.3 66.7 85.0 16.7 53.3 81.7 p. fumosoroseus d1 28.6 43.8 60.0 36.7 58.3 81.7 13.3 36.7 80.0 d2 32.4 44.8 61.9 41.7 66.7 83.3 28.3 53.3 81.7 d3 38.1 48.6 68.6 50.0 71.7 90.0 33.3 58.3 83.3 d4 52.4 68.6 85.7 53.3 78.3 91.7 35.0 71.7 88.3 d1: 1 × 10⁴ spores/ml; d2: 1 × 10⁵ spores/ml; d3: 1 × 10⁶ spores/ml; d4: 1 × 10⁷ spores/ml; dat: days after treatment. the median lethal concentration (lc50) the lc50 values and toxicity levels of the three species of entomopathogenic fungi were compared against sucking insects and tssm, as shown in table 2. the results revealed that the lowest lc50 values were 0.87 × 10⁵ spores/ml and 0.10 × 10⁷ spores/ml for m. anisopliae against t. urticae and b. tabaci, respectively. meanwhile, the lowest lc50 value for p. fumosoroseus was 0.58 × 10³ spores/ml against a. gossypii. table 2: dose mortality of epf against sucking insects and tssm 25 ± 1°c and 70 ± 5% r.h. epfs dose mortality of entomopathogenic fungi t. urticae a. gossypii b. tabaci lc50 (spores/ml) 95% fiducial limits (spores/ml) lc50 (spores/ml) 95% fiducial limits (spores/ml) lc50 (spores/ml) 95% fiducial limits (spores/ml) m. anisopliae 0.87 x 105 0.21 x 103 0.93 x 106 0.81 x 104 0.39 x 101 0.12 x 106 0.10 x 107 0.79 x 106 0.54 x 109 b. assiana 0.13 x 106 0.28 x 1050.38x106 0.17 x 105 0.11 x 102 0.20 x 106 0.15 x 108 0.43 x 107 0.72 x 108 p. fumosoroseus 0.19 x 106 0.72 x 1040.12x107 0.58 x 103 0.27 x 102 0.12 x 105 0.60 x 107 0.15 x 107 0.28 x 108 the median lethal time (lt50) as shown in table 3, the lt₅₀ values decreased as the spore concentration increased. at the highest tested concentration of 1 × 10⁷ spores/ml, the lt₅₀ for m. anisopliae, b. bassiana, and p. fumosoroseus was recorded as 3.55, 3.75, and 3.37 days, respectively, for t. urticae. for a. gossypii, the corresponding lt₅₀ values were 2.70, 2.72, and 2.42 days, while for b. tabaci, the lt₅₀ values were 4.04, 4.88, and 4.05 days, respectively. table 3: time mortality of epf against sucking insects and tssm 25 ± 1°c and 70 ± 5% r.h. epfs median lethal time (days) of entomopathogenic fungi t. urticae a. gossypii b. tabaci d1 d2 d3 d4 d1 d2 d3 d4 d1 d2 d3 d4 m. anisopliae 4.44 4.04 3.80 3.55 3.32 3.10 2.88 2.70 5.64 5.04 4.30 4.04 b. bassiana 4.80 4.40 3.90 3.75 3.32 3.07 2.85 2.72 5.92 5.80 5.05 4.88 p. fumosoroseus 4.71 4.52 4.15 3.37 3.17 2.85 2.58 2.42 5.41 4.92 4.65 4.05 d1: 1 x 104 spores/ml; d2: 1 x 105 spores/ml; d3: 1 x 106 spores/ml; d4: 1 x 107 spores/ml agbioforum, 26(3), 2024 | 152 xuan et al — biocontrol potential of different entomopathogenic fungi and neem oil for control of sucking insects and two-spotted... the combination of entomopathogens with neem oil against sucking insects and tssm a. gossypii and b. tabaci the examination of the effects of various entomopathogens, both individually and in combination with neem oil, revealed significant differences among the three types of epfs, whether used alone or together. m. anisopliae demonstrated substantial potential as an entomopathogen against two sucking insects, aphids and whiteflies. the highest mortality rate observed was 81.1% at a concentration of 10⁵ spores/ml and 75.0% six days after treatment (dat) on a. gossypii and b. tabaci, respectively. b. bassiana showed corresponding mortality rates of 74.4% and 80.0%, respectively table 4. in contrast, p. fumosoroseus exhibited the most efficacy against the nymphs of a. gossypii (66.7%, 81.1%, and 87.8% at 4, 5, and 6 dat, respectively) and b. tabaci (51.24%, 72.88%, and 85.38% at 4, 5, and 6 dat, respectively). neem oil (1%), however, showed lower efficacy as a botanical treatment for the emerging pests, with mortality rates at 4, 5, and 6 dat of 42.2%, 55.6%, and 72.0% for a. gossypii, and 20.0%, 31.67%, and 51.67% for b. tabaci. when these entomopathogenic fungi were applied in combination with neem oil at a 1:1 ratio, mortality rates significantly increased in all cases compared to their individual effects. this suggests compatibility among these essential biopesticides. the treatments combining m. anisopliae and neem oil, as well as p. fumosoroseus and neem oil at a 1:1 ratio, achieved maximum effective control of 100% against a. gossypii table 4. the mixture of b. bassiana with neem oil resulted in 95.6% pest control. a similar trend was observed in b. tabaci, with complete (100%) control of thrips nymphs attained through the combined application of p. fumosoroseus and neem oil, m. anisopliae with neem oil, and b. bassiana with neem oil. t. urticae the present study highlighted the effectiveness of epfs and neem oil in controlling tssm. m. anisopliae exhibited an average effectiveness of 78.1% when used alone, but when combined with neem oil at a 1:1 ratio, it resulted in a maximum mortality rate of 100%. this was followed by a 98.1% efficacy for the combination of p. fumosoroseus and neem oil at the same ratio. the mixture of b. bassiana and neem oil demonstrated an efficacy of 86.7%. table 4: impact of various entomopathogens individually and in combination with neem oil on t. urticae, a. gossypii, and b. tabaci at 25 ± 1°c and 70 ± 5% r.h. treatments the mortality (%) t. urticae a. gossypii b. tabaci 4th dat 5th dat 6th dat 4th dat 5th dat 6th dat 4th dat 5th dat 6th dat a1 41.9e 48.6e 53.3e 42.2e 55.6f 72.0f 20.00d 31.67d 51.67c a2 65.7c 76.2c 78.1c 61.1cd 73.3de 81.1d 42.5c 61.67c 75.00b a3 51.4de 60.0de 65.7d 55.6d 67.8ef 74.4e 40.00c 65.00c 80.00b a4 58.1cd 68.6cd 74.3cd 66.7c 81.1cd 87.8c 51.24d 72.88b 85.38b a5 92.4a 95.2a 100a 90.0a 95.6ab 100a 49.17c 63.33c 78.33b a6 77.1b 81.0bc 86.7b 84.4b 90.0bc 95.6b 59.61cd 77.62b 88.97b a7 87.6a 92.4a 98.1a 93.3a 97.8a 100a 87.49b 95.47a 100.00a note: identical letters within the same column indicate no significant differences (p ≤ 0.05). in this case, a1 refers to neem oil applied at a 1% concentration; a2 corresponds to m. anisopliae at 1 × 10⁵ spores/ml; a3 represents b. bassiana at 1 × 10⁵ spores/ml; and a4 indicates p. fumosoroseus at 1 × 10⁵ spores/ml. treatments a5, a6, and a7 represent combinations of m. anisopliae, b. bassiana, and p. fumosoroseus with neem oil, respectively, each mixed in a 1:1 ratio. the term dat denotes the number of days after treatment application. discussion the potential of entomopathogenic fungi, including metarhizium anisopliae, beauveria bassiana, paecilomyces fumosoroseus, and neem oil, as biological control agents against tetranychus urticae, aphis gossypii, and bemisia tabaci appears promising for future applications. higher concentrations are likely to enhance efficacy in controlling these insects. the study also highlighted that increased doses of neem oil or fungal conidia concentrations can significantly improve the effectiveness against the targeted pests. when exposed to the same concentration of conidia, aphis gossypii and tetranychus urticae showed greater susceptibility to metarhizium anisopliae ctuma01 and paecilomyces fumosoroseus ctupae025 compared to beauveria bassiana ctubb28. abdel-raheem, saad, & abdelrahman (2021) examined the mortality rates of myzus persicae, aphis gossypii, and aphis citricola at spore concentrations between 10⁶ and 10⁷ spores/ml over four days of testing. saranya et al. (2010) found that verticillium lecanii and hirsutella thompsonii achieved 100% mortality at 10⁸ spores/ml, while beauveria bassiana and metarhizium anisopliae showed comparatively lower mortality rates. smitha (2007) observed that as the fungal solution was diluted, mortality rates decreased. additionally, the seventh-day infection of anagasta craccivora resulted in 91% and 93% mortality rates, a trend also observed in this study. beauveria bassiana spore concentration at 1.2 × 10⁴ spores/ml and metarhizium anisopliae at 2.45 × 10⁶ spores/ml were examined by chandler et al. (2005). dogan et al. (2017) reported that metarhizium brunneum (strains arsef 4556 and v275), lecanicillium lecanii (strain uph-0241), and beauveria bassiana (strain uph-1103) successfully reduced the population of two-spotted spider mites by 57.3% to 90.3% when exposed to a concentration of 1 × 10⁷ conidia/ml under controlled conditions in petri dishes. agbioforum, 26(3), 2024 | 153 xuan et al — biocontrol potential of different entomopathogenic fungi and neem oil for control of sucking insects and two-spotted... the results of this study confirmed the significant pathogenic effects of the entomopathogenic fungi, as evidenced by the low lc₅₀ values observed. however, a decrease in fungal spore concentration resulted in lower mortality rates. previous studies have also reported low lc₅₀ values for entomopathogenic fungi, such as 1.2 × 10⁴ spores/ml for brevicoryne brassicae and 2.7 × 10⁴ spores/ml for aphis gossypii. among the tested fungal isolates, verticillium lecanii and hirsutella thompsonii exhibited higher virulence, achieving an lc₅₀ of 2.5 × 10⁴ spores. similar findings were reported by researchers who recorded an lt₅₀ of 3.17 days for beauveria bassiana. additionally, saranya et al. (2010) found that v. lecanii induced mortality in aphis fabae populations on bean crops within approximately 3.31 days. combining three types of entomopathogenic fungi with neem oil resulted in the highest mortality rates against t. urticae, a. gossypii, and b. tabaci. azadirachtin in neem oil inhibits molting and reduces feeding, facilitating fungal mycelium penetration into the insect’s chitin layer. the effectiveness of this combination is influenced by the chemical composition of neem oil, including phytoalexins, terpenoids, and triterpenoids, which affect the compatibility of epfs. ribeiro et al. (2012) noted that these changes can impact insectpathogenic fungi, while mohan et al. (2007) highlighted the role of genetic variability in fungal isolates' compatibility with plant protection products. a study demonstrated that a combination of verticillium lecanii, beauveria bassiana, and azadirachtin reduced a. gossypii populations by 30% to 70%. oil-based formulations of b. bassiana and metarhizium anisopliae achieved a 96.67% mortality rate in leafhoppers, and v. lecanii caused mortality rates of 96.77% in aphids and 97% in thrips by day 10. additionally, experiments showed no significant inhibition of b. bassiana growth when cultured with 5% neem seed extract. farmers increasingly use epf as a sustainable pest management approach in agriculture, providing an effective alternative to chemical pesticides. as natural organisms, epf offer excellent insect pest control, contributing to food security and supporting sustainable agricultural practices. ipm benefits greatly from epf, offering a natural solution to concerns about the adverse effects of synthetic pesticides on human health, biodiversity, and ecosystem balance. epf are effective biological control agents as they naturally infect and eliminate pests. liu, smagghe, & liu (2023) conducted a study that highlighted the importance of epfhost molecular interactions, focusing on glycans as crucial components for fungal adhesion and infection. understanding the biochemical processes involved is essential for developing targeted biocontrol methods that yield effective results. by studying the biological complexity of these interactions, researchers can create more efficient epf-based biopesticides. the knowledge gained from this study supports the development of precision agriculture and enhances the understanding of pathogen-host dynamics in pest management. trinh, ha, & qiu (2020) evaluated various epf strains in laboratory conditions to assess their potential for controlling megoura japonica bean aphids. they found fungal isolates that effectively eliminated aphid populations, highlighting the importance of native fungal strains for pest control. this research demonstrated the efficiency of epf in developing pest management systems for aphid outbreaks in legume plants and other crops. sani et al. (2020) investigated biological control for bemisia tabaci, aligning with trinh et al.'s findings. their study showed that epf is a valuable pest management tool, working well in various agricultural systems and in combination with other biocontrol agents like parasites and predators. they also explored different epf formulation strategies and application methods, highlighting their role in eco-friendly pest management. aravinthraju et al. (2024) built on previous studies by examining how endophytic epf enhances plant resistance to pests. the research revealed that epf colonises plant tissues, triggering defensive mechanisms against stress. this approach can be used in pest and disease management, combining endophytic plants with fastfluorescing bacteria. mantzoukas et al. (2022) investigated epf's pest control abilities across agricultural systems. their research confirmed that epf functions through two mechanisms: pathogen infection and ecological changes, affecting soil microbial communities, plant growth, and pest behaviour. further interdisciplinary research and funding are needed to fully integrate epf as a sustainable pest management solution. halder et al. (2021) studied the use of epf combined with botanical extracts for managing sucking pests on okra in outdoor conditions. they found that organic farming and integrated pest management are most effective when their components are well-matched, prioritising ecosystem health. their data supports the development of integrated biological and botanical pest control products for sustainable crop protection. aquino-bolaños et al. (2023) demonstrated that epf in oilbased suspensions could effectively control the agave weevil, scyphophorus acupunctatus. laboratory tests showed that oil preparations helped fungi survive and attach to insect exoskeletons, increasing the likelihood of fungal infection. these findings are significant for agavedependent regions, highlighting the potential of epf as a sustainable, environmentally friendly pest control method. du, xia, & jin (2022) used biotechnological methods to enhance epf strains by modifying key transcription factor genes, including masom1. this led to increased virulence, conidial production, and environmental tolerance. their research shows how genetic engineering can improve epf as an effective biopesticide, while emphasising the need for proper regulation and risk assessment for genetically modified organisms in agriculture. sharma, sharma, & yadav (2023) reviewed the role of epf in sustainable agriculture, highlighting their benefits in pest management, pesticide reduction, soil quality improvement, and biodiversity protection. they suggest that epf fungi should be incorporated into national and international agricultural strategies to address current ecological challenges. their findings provide valuable resources for policymakers, researchers, and practitioners aiming to promote environmentally friendly agricultural systems. ebani & mancianti (2021) expanded their investigations into the veterinary domain, demonstrating the effectiveness agbioforum, 26(3), 2024 | 154 xuan et al — biocontrol potential of different entomopathogenic fungi and neem oil for control of sucking insects and two-spotted... of epf in managing livestock parasites, such as flies and mites, when combined with beneficial bacteria. this combined approach underscores the versatility of epf, positioning them as key elements in integrated health systems for both agricultural and animal husbandry practices, thereby providing novel opportunities for the development of sustainable biocontrol methods. in a separate study, kutalmış et al. (2023) examined the phylogenetic relationships among various epf species to evaluate their effectiveness in controlling the pest tropinota hirta (syn. epicometis hirta) and the fungal pathogen venturia inaequalis, which causes apple scab. their findings highlighted the importance of understanding evolutionary connections when selecting the most suitable biocontrol agents. this research illustrates how phylogenetic studies can aid in making informed decisions about pest management, leading to the creation of more efficient and ecologically responsible biocontrol strategies. the body of scientific literature surrounding epf continues to expand, reinforcing their potential as eco-friendly alternatives to chemical pesticides. the critical role of epf in shaping the future of global agriculture is becoming increasingly apparent, offering targeted solutions to pest management issues. ongoing advancements in research on epf’s biology, ecological interactions, and application techniques will be instrumental in realising their full potential within sustainable agricultural frameworks worldwide. conclusion in conclusion, this study highlighted the effectiveness of neem oil and epf in controlling tssm, aphids, and whiteflies, particularly when applied at high concentrations. when used in combination at lower concentrations, these agents demonstrated notable potential in managing the populations of these pests. however, further investigation into optimal application rates and field spraying timings is essential to maximise the synergistic effects of these treatments for future practical applications. acknowledgment we would like to acknowledge the support of the technical cooperation project "building capacity for can tho university to be an excellent institution of education, scientific research and technology transfer" of jica, which partly funded this study. conflicts of interest the authors declare that there are no conflicts of interest. references abdel-raheem, m., saad, a., & abdel-rahman, i. 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https://krishikosh.egranth.ac.in/handle/1/5810041463 https://doi.org/10.3390/agriculture10040114 https://doi.org/10.1007/s10493-014-9871-2 https://doi.org/10.1007/s10493-014-9871-2 https://doi.org/10.1016/j.cosust.2013.05.007 https://doi.org/10.1080/09670870150215559 https://doi.org/10.1080/09670870210139304 https://doi.org/10.1080/09670870210139304 https://doi.org/10.1371/journal.pone.0174791 kurji et al — evaluation of work prosperity on promoting employees’ innovative behaviour at the state company… agbioforum, 26(2): 126-135. ©2024 agbioforum evaluation of work prosperity on promoting employees’ innovative behaviour at the state company for agricultural equipment sahar ahmed kurji college of administration and economics, al-mustansiriya university. email: dr_agsahr@uomustansiriyah.edu.iq fadia lutfi abdulwahhab college of administration and economics, al-mustansiriya university. email: fadia_alganabi@uomustansiriyah.edu.iq hadeel qasim oleiwi college of administration and economics, al-mustansiriya university. email: hadeelqa@uomustansiriyah.edu.iq introduction business environments are dynamic and complex by nature, as external environmental changes are both incessant and expeditious, due to triggers such as advancements in technology, globalisation, and shifting needs and desires of consumers (nudurupati, garengo, & bititci, 2021). such dynamics necessitate that organisations adjust quickly and expeditiously by cultivating innovation cultures in workforce (tao et al., 2024). innovative behaviour is defined by introducing, advocating, and implementing valuable and new ideas in pursuit of improving products, processes, and work practices (tao et al., 2024). such behaviour remains imperative in guaranteeing organisational long-term viability, as it facilitates its stability, expansion, as well as competitiveness, especially in a rapidly changing market environment. work prosperity ranks as one such catalyst of innovation that encompasses employees' state of vigour and ceaseless improvement in work (niessen, sonnentag, & sach, 2012). employees' energy, enthusiasm, and involvement denote vitality, while learning incorporates new knowledge and skill acquisition (kleine et al., 2023). in combination, such work prosperity dimensions develop an organisational climate that encourages employee support, enhances organisational commitment, as well as encourages expansion and innovation (dias et al., 2023). this linkage of work prosperity and innovative behaviour (novaes et al., 2020) undergirds this current study. the present study seeks to explore the impact of work prosperity on enhancing employees' innovative behaviour. to achieve this, work prosperity is considered the independent variable, comprising the dimensions of vitality and learning, while employees' innovative behaviour serves as the dependent variable. the interaction between these two variables forms the central framework of the study. the identification of the research problem stems from the results of a preliminary survey conducted with a subset of the research sample, which led to the formulation of a set of questions that underpin the empirical aspect of the study. in response to these questions, the study adopts a hypothetical model that illustrates the logical relationships between its variables and outlines the main hypothesis, aiming to identify correlations and causal influences between the research variables. the general company for agricultural equipment has been selected as the context for the research. the purposive sample consists of 58 individuals holding managerial positions, specifically department and division directors. a questionnaire, developed from existing scientific literature, was used as the primary tool for data collection, supplemented by personal interviews. to analyse the data, a combination of descriptive and inferential statistical methods was employed using the smartpls-4 statistical software. the statistical analysis yielded several findings, leading to a set of conclusions. it was determined that work prosperity significantly influences the enhancement of employees' innovative behaviour. based on these conclusions, several recommendations have been made to mitigate the identified challenges, including the promotion of work prosperity, particularly in the areas of vitality and learning, to foster greater innovative behaviour among employees. keywords: work prosperity, employees’ innovative behaviour, general company for agricultural equipment. innovative behaviour occurs when individuals within the workplace generate and implement new and useful ideas, contributing to the organisation's continuity, development, and competitive ability. work prosperity guides employees toward goal-oriented activities in response to the changing conditions of the work environment (hunsaker & ding, 2022). the innovation capacity of organizations depends heavily on work prosperity because it develops an employee-centred environment which promotes motivation and engagement (tao et al., 2024). training opportunities alongside vitality create an employee population that comes forward with fresh solutions and leads problem solving activities toward more efficient operations and strategic goals (javed et al., 2021). the nature of technological change and market transformations requires this approach for specific business sectors. soaring competitive demands create a need for organizations to build a work environment that supports both experimental efforts and team collaboration and knowledge transfer for maintaining their enduring success and stability (al ajlouni, 2021). the understanding of work prosperity essential links to employee job satisfaction and psychological well-being and organizational commitment because these factors greatly affect employee willingness toward innovative practices. the higher the vitality levels among employees will decrease burnout risk while boosting their tendency to perform proactive tasks which advance organizational achievements (yan & loang, 2024). the workplace mailto:dr_agsahr@uomustansiriyah.edu.iq mailto:fadia_alganabi@uomustansiriyah.edu.iq mailto:hadeelqa@uomustansiriyah.edu.iq agbioforum, 26(2), 2024 | 127 kurji et al — evaluation of work prosperity on promoting employees’ innovative behaviour at the state company… achieves higher successes when employees display developed learning orientation which empowers them to apply needed skills and knowledge to execute innovative methods and enhance operational routines. organisations succeed at external challenges by remaining agile through their continuous development strategy (kun & gadanecz, 2022). as a psychological state shaped by the work context, work prosperity becomes more dynamic (novaes et al., 2020). employees with positive energy, mental and physical strength, and a sense of learning and skill acquisition are more likely to demonstrate higher job performance and experience less work-related pressure compared to their less vital and less engaged colleagues (al-ajlouni, 2021). the present study holds significant value in the academic domain, as it addresses a research gap concerning work prosperity within the iraqi context, an area that remains underexplored despite abundant international research. practically, the study provides insights into the current state of work prosperity from the perspective of the research sample and its measurement in the field (hunsaker & ding, 2022). additionally, it offers recommendations that can assist companies in adopting policies and programmes that foster work prosperity, thereby positively influencing the enhancement of employees' innovative behaviour, based on the study's findings. based upon, the research problem can be framed according to the following questions:  what is the level and nature of the research variables (work prosperity, employees’ innovative behaviour)?  what is the nature of the correlation and influence of work prosperity on promoting employees’ innovative behaviour? this research aims to examine the impact of work prosperity on enhancing employees' innovative behaviour, with the study population comprising the general company for agricultural equipment. the company was selected due to its significance and its pressing need to address competitive and operational challenges through innovation. the study targeted 58 managers, whose perspectives enabled the researchers to explore the interplay between work prosperity and innovation within the organisation. the research also seeks to assess the level and nature of the dimensions of work prosperity—vitality and learning—and their role in fostering employee innovation. a central research question was developed and articulated through a series of sub-questions that frame the research project. these questions underpin the theoretical framework and practical implications of the study, highlighting the scientific and practical importance of understanding work prosperity as a precursor to organisational innovation. the study is systematically structured into four key sections. the first section details the research methodology employed to address the posed questions and achieve the study's objectives. the second section establishes the theoretical framework, defining the concept of work prosperity and reviewing relevant literature on employees' innovative behaviour. the third section focuses on the applied aspect of the research, presenting data analysis and results. finally, the fourth section synthesises the major findings, theoretical and practical contributions, and offers recommendations for researchers and practitioners. literature review work prosperity work prosperity is a relatively new concept within the field of human resource management, closely linked to positive psychology (kun & gadanecz, 2022). organisational productivity has emerged as a major theme, highlighting how fostering an optimal environment that enhances employees’ engagement, performance, and satisfaction positively impacts overall organisational performance (iqbal, nazir, & ahmad, 2022). management is expected to prioritise employees' health and satisfaction, aiming to optimise them as ‘human capital’ and align with the organisational pursuit of personal happiness and ‘positive psychology’ (ng et al., 2022). recent scholarly interest has increasingly focused on work prosperity, recognising it as both a valuable end-user and organisational objective. the concept encapsulates well-being, engagement, and performance within organisational contexts (spreitzer & porath, 2012). work prosperity fosters internal positive energy, a sense of ambition, and the motivation to succeed and seek career advancement. it is considered a vital mechanism to ignite enthusiasm and collaboration among human resources (donaldson, van zyl, & donaldson, 2022). work prosperity is defined as an individual’s capacity to thrive within a workplace, enhancing their well-being through effective performance. previous studies frequently define work engagement as a state in which individuals experience positive emotions, happiness, satisfaction, and motivation in their work, further characterised by an energetic and optimistic outlook on life through work (lin et al., 2020). work prosperity is understood to be a dynamic state, influenced by the work environment, available resources, and internal employee factors that collectively contribute to its enhancement (spreitzer & porath, 2012). prosperity in the workplace is critical as vitality and learning are key factors in enhancing the performance and well-being of talented employees who navigate intense competition in their work environments (pfeffer, 2010). work prosperity is conceptualised as a desirable and positive psychological state in which employees feel energised to learn (spreitzer et al., 2005). thriving employees find their current work experiences intrinsically motivating, fostering both personal and professional development. work prosperity is further defined as a psychological state encompassing vitality and learning (porath et al., 2012). similarly, it is characterised as a positive psychological state marked by a shared sense of vitality and learning. prosperous employees achieve personal growth by maintaining a sense of active engagement and continuously acquiring and applying knowledge (kleine et al., 2023; tri & van thanh, 2022). these researchers concur with this definition, emphasising its core elements. spreitzer et al. agbioforum, 26(2), 2024 | 128 kurji et al — evaluation of work prosperity on promoting employees’ innovative behaviour at the state company… (2005) proposed a two-dimensional model of prosperity, comprising vitality as the first dimension and learning as the second. these dimensions are considered fundamental to achieving work prosperity. vitality, an affective component, encompasses energy and enthusiasm, while learning, a cognitive component, pertains to both personal and professional development (porath et al., 2012). perseverance and development are firmly established as the twin pillars of workplace well-being, serving as essential prerequisites for overall health and human effectiveness (disabato, goodman, & kashdan, 2019; maya, anjana, & nanthini, 2024). employees must acquire new knowledge while simultaneously maintaining their energy levels. a lack of balance between these elements can lead to significant challenges. for instance, employees who focus on learning new skills may become too fatigued to apply them effectively. conversely, employees who remain highly motivated to work but lack opportunities for further learning may struggle to advance in their careers due to stagnation (niessen et al., 2012). the interplay between learning and vitality is crucial for work prosperity, fostering a sense of progress and a prosperous future, which neither vitality nor learning alone can achieve (spreitzer & porath, 2012). these elements act as benchmarks for individuals to evaluate and enhance performance, aligning short-term personal growth with long-term organisational goals (niessen et al., 2012; périlleux & charles, 2014). vitality, representing the emotional dimension, involves energetic behaviours, mental and physical engagement, and enthusiasm for work (na-nan et al., 2020; porath et al., 2012). learning, the cognitive dimension, is the acquisition and application of knowledge and skills, enabling individuals to adapt, innovate, and achieve goals (ericsson, krampe, & teschrömer, 1993; spreitzer & porath, 2012). together, these dimensions promote selfdevelopment and sustainability in work. employees’ innovative behaviour innovativeness is a fundamental competency for organisational management and success. when time is constrained, and demands are high, traditional strategies and practices become inadequate. organisations must adopt strategies that drive progress rather than risk stagnation (behl et al., 2022). innovative behaviour, a subset of organisational behaviour, is characterised as a discretionary and supplementary activity not formally mandated within work performance, making it unsuitable for direct enforcement upon individuals (lin et al., 2020). in the workplace, creative ideas reflect the capacity to generate, support, and implement practical solutions that contribute to organisational success. such behaviour aligns with the contingency paradigm, as organisations must adapt and evolve to survive in changing circumstances. this ensures strategic objectives are met and facilitates effective development (hughes et al., 2018). innovative behaviour encompasses all actions through which employees progress the innovation process, ultimately resulting in innovation (de jong & den hartog, 2007). it is an optional behaviour exceeding predefined roles and is not explicitly recognised or enforced (sanders et al., 2010). the process of innovation involves multiple stages, including refining identified ideas, securing resources, and addressing prerequisites to realise these ideas in ways that benefit the organisation and society. promoting innovation allows organisations to improve performance, address emerging challenges, and gain a competitive advantage (behl et al., 2022). teamwork together with collaboration form essential elements of innovative behavior. the contact with different workplace perspectives in diverse teams leads employees to develop innovative solutions (garcía-sánchez, siles, & de mar vázquez-méndez, 2021). new ideas develop stronger through cross-functional collaboration since different experts share professional backgrounds which boost solution-finding abilities. employers who make their workforce participate in continuous learning foster flexible personnel who approach problems in creative ways (javed et al., 2021). allowing workers to take part in training sessions along with permitted attendance at industry meetings and approved participation in mentorship programs will activate innovative thinking capabilities that enable organizations to maintain their agile competitive position in evolving markets (iqbal et al., 2022). employees’ innovative behaviour involves the intentional initiation and presentation of new, useful ideas within the scope of work, group, or organisation. these ideas pertain to products, services, or work methods and include the necessary actions to develop, introduce, and implement them (hughes et al., 2018). this view aligns with researchers’ perspectives, emphasising the role of innovation in achieving organisational objectives. stability and validity tests for the questionnaire table 1 reports the internal reliability test results using cronbach's alpha coefficient, average variance extracted (ave), and composite reliability coefficient (rho_c). the measures assess the stability quality and reliability of the measurement instrument. table 2 indicates that cronbach's alpha figures of the key variables and their subdimensions met the minimum threshold of 0.70, thereby establishing internal consistency. likewise, ave figures of all variables and sub-dimensions of variables exceeded the minimum acceptable value of 0.50, establishing suitable construct validity. the composite reliability figures of all variables and dimensions were also above the threshold of 0.70, indicating high reliability. the results, in aggregate, establish that the instrument shows a suitable level of stability and consistency. figure 1 illustrates the factor saturation values of the constituent paragraphs for the dimensions and variables, all of which surpassed the acceptable threshold of 0.40 for latent variables. this was achieved using structural equation modelling with partial least squares via the smart-pls 4 software, a suitable statistical method for small sample sizes, unlike the amos program, which necessitates larger samples. agbioforum, 26(2), 2024 | 129 kurji et al — evaluation of work prosperity on promoting employees’ innovative behaviour at the state company… table 1: the values of the cronbach alpha coefficients, the extracted mean variance, and the composite stability coefficient of the measurement tool with its main variable and sub-dimensions. coefficients values number of items cronbach's alpha value extracted mean variance values compound stability (rho_c) variables and dimensions cronbach's alpha ♪ ave ♪ x1 the dimension of vitality of work 5 903 718 0.927 x2 the dimension of learning 5 48 0.646 .834 x work prosperity 10 8. 0.636 93 y employees’ innovative behaviour 10 0.943 669 952 source: the two researchers based on the results of the statistical analysis using the statistical program. figure 1: the values of the factor saturation of the latent variables for each paragraph through the smart pls4 program. explanation of the research variables, overview of the analysis of the sample answers and overall interpretation in this subsection, the researchers present the findings of the descriptive statistical analysis of the research variables. the respondent response strength matrix in the current study illustrates the sample's level of responses, as recorded by the participants. this matrix provides an estimated balance based on the likert scale, as detailed in table 2. table 2: respondent response strength matrix on survey paragraphs. category the value of the weighted arithmetic mean the strength of the response to the questionnaire paragraphs respondent response level 1st 1 to less than 1.80 totally disagree very low 2nd 1.8 to less than 2.6 disagree. low third 2.6 to less than 3.4 neutral moderate 4th 3.4 to less than 4.2 agree high 5th 4.2 to 5 totally agree very high h source: karnilev (2002). description and diagnosis of the work prosperity paragraphs table 3: statistical measures of the paragraphs and dimensions of work prosperity n=58. code item arithmetic mean standard deviation relative importance sequence of paragraphs x11 i feel energized and motivated at my job 3.41 0.918 68.2 3 x12 my job gives me energy and spirit to work 3.43 0.840 68.6% 2 x13 i am happy every new working day at the company 3.47 0.903 69.4 1 x14 my job allows me to be resilient in the face of problems 3.26 0.890 65.2 5 x15 my job allows me to adapt to any changes and developments at work 3.36 852, 67.2% 4 x1 : overall rate of dynamic dimension work prosperity 386 748. 67.7% x21 i'm growing in positive ways 3.72 0.790 74.4% 1 x22 i'm stuck. 2.83 0.729 56.6% 5 x23 i continue to learn more in my job over time 3.52 0.822 70.4% 2 x24 my job offers opportunities to continually improve 3.26 0.947 65.2 4 x25 i find new ways to develop in my job 3.43 0.939 68.6% 3 x2 overall rate of learning dimension of work prosperity $7,780 571 67% x overall business boom rate 3-369 0.626 67.4% source: the results of statistical analysis using spss v.28. agbioforum, 26(2), 2024 | 130 kurji et al — evaluation of work prosperity on promoting employees’ innovative behaviour at the state company… description of paragraphs (dimension of vitality of work prosperity) this dimension was measured using items x11 to x15. table 3 presents the arithmetic means, standard deviation, and relative importance based on the perspectives of the research sample regarding the vitality dimension of workplace prosperity. the table 3 indicates an average score of approximately 3.386, which falls within the range of 2.6 to less than 3.4, as outlined in the response strength matrix. this suggests that the overall importance of the sample's responses to these items, particularly with a focus on orientation towards beneficiaries, is moderate and considered less critical. the standard deviation of 0.748 indicates a relatively low dispersion in the responses of the research sample. the relative importance of this variable is 67.7%, reflecting a relatively high level of interest expressed by the respondents concerning this dimension within the company. this dimension, measured using items x21 to x25, shows a general arithmetic mean of 3.352, as presented in table 3. this falls within the 2.6 to 3.4 range, indicating moderate importance with significant neutrality. the standard deviation of 0.571 suggests small variation in responses. the relative importance is 67%, reflecting a fair concern among respondents about this dimension. overall, workplace prosperity has a total weighted mean of 3.369, with a standard deviation of 0.626 and relative importance of 67.4%, confirming a moderate level of importance in the sample's responses, as shown in table 3. description and diagnosis of the paragraphs of employees’ innovative behaviour (the dependent variable) this variable was assessed using items y1 to y10. table 4 presents the arithmetic means, standard deviations, and relative importance from the perspective of the investigated sample regarding employees' innovative behaviour. according to table 4, the averages converge to a general arithmetic mean of 3.385. this value falls within the range of 2.6 to less than 3.4 in the response strength matrix, indicating that the level of responses across all items related to employees' innovative behaviour was slightly positive, reflecting a moderate level of response. the standard deviation of 0.685, which is relatively small, highlights a limited dispersion in the answers of the sample members. the contribution of this variable to the study is 67.7%, suggesting that the majority of responses regarding employees' innovative behaviour leaned slightly towards agreement. this indicates a moderate level of concern among respondents regarding this dimension within the company. table 4: statistical measures of the employees’ innovative behaviour n=58. code item arithmetic mean standard deviation relative importance sequence of paragraphs y1 i have the ability to create new ideas in my work 3.84 ,7210 76-44-8 2 y2 i am interested in analysing developments to look for new ways of working 3.53 777, llc 70.6% 4 y3 i have the ability to predict work problems before they occur 2.95 0.660 59% 9 y4 i try new ideas and methods at work 3.53 0.903 70.6% 5 y5 i have the ability to think quickly in different circumstances 3.88 0.677 77.6% 1 y6 i put forward new ideas without hesitation for fear of failure 3.26 0.890 65.2 7 y7 i am ready to face any new situations that may occur in the work environment 3.57 0.840 71.4% 3 y8 the management of the company encourages any positive suggestions from others 3.28 1.022 65.6% 6 y9 company management encourages individuals who go beyond routine 2.84 0.812 56.8% 10 y10 the company's management works to urge individuals and encourage them to think outside the scope of their competence 3.16 1.005 63.2% 8 the overall rate of employees’ innovative behaviour 3.385 0.685 67.7% source: the results of statistical analysis using spss v.28. testing the correlation between the research variables the first research hypothesis (h1) posits that there is a statistically significant correlation between workplace prosperity and employees' innovative behaviour. to evaluate the validity of this hypothesis, the pearson correlation coefficient was employed. this statistical method was used to analyse the primary hypothesis and its sub-hypotheses, as illustrated in figures 2 and 3, and summarised in table 5. table 5 reveals a strong and statistically significant correlation between workplace prosperity and employees' innovative behaviour, with a sig. (2-tailed) value of 0.000 and a confidence level exceeding 99%. the pearson correlation coefficient is 0.875, as depicted in figure 2. this finding indicates a very strong direct relationship between workplace prosperity and employees' innovative behaviour at the organisational level. the results suggest that higher levels of workplace prosperity are strongly and positively associated with employees' innovative behaviour, as perceived by the research sample. consequently, the first hypothesis (h1), which asserts the existence of a statistically significant correlation between workplace prosperity and employees' innovative behaviour, is accepted. the following section provides an analysis of the sub relationships between the dimensions of workplace prosperity and employees' innovative behaviour in the context of the sub-hypotheses (gu et al., 2024). agbioforum, 26(2), 2024 | 131 kurji et al — evaluation of work prosperity on promoting employees’ innovative behaviour at the state company… figure 2: model of the correlation between the work prosperity and employees’ innovative behaviour. source: amos v.26 program outputs. figure 3: model of correlation between work prosperity and employees’ innovative behaviour. source: amos v.26 program outputs. table 5: the value of the correlation coefficient between work prosperity and employees’ innovative behaviour. hypothesis code correlation coefficient p value nature of relationship h1 x y 0.875 00 very strong h1 1 x y 0.798 00 direct force h1-2 2 x y 0.872 00 very strong source: spss v.28 outputs. analysis of the relationship between the vitality dimension of work prosperity and employees’ innovative behaviour table 5 shows that the correlation coefficient between the vitality dimension of workplace prosperity and employees’ innovative behaviour is 0.798, reflecting a high level of statistical significance (sig. = 0.000) and confidence intervals exceeding 99%. this finding indicates that as the vitality dimension of workplace prosperity increases, there is a correspondingly strong positive relationship with employees' innovative behaviour. this result supports the first sub-hypothesis derived from the main hypothesis, confirming the existence of a statistically significant correlation between the vitality dimension of workplace prosperity and employees’ innovative behaviour. analysis of the relationship between the learning dimension of work prosperity and employees’ innovative behaviour table 5 reveals that the correlation coefficient between the learning dimension of workplace prosperity and employees’ innovative behaviour is 0.872, with a significance level of 0.000 and confidence intervals exceeding 99%. this result indicates that a higher degree of the learning dimension of workplace prosperity is strongly and positively associated with an increase in employees’ innovative behaviour. this finding supports the first sub-hypothesis derived from the main hypothesis, confirming the presence of a statistically significant positive correlation between the learning dimension of workplace prosperity and employees’ innovative behaviour. testing the influence correlation between the research variables to analyse the second main hypothesis, which examines whether workplace prosperity and its sub-dimensions significantly influence employees’ innovative behaviour, structural equation modelling (sem) was employed using the covariance method via the amos v.26 software. this method is particularly effective for representing multiple relationships among variables. the statistical analysis reveals that the explanatory value of workplace prosperity, as indicated by the coefficient of determination (r²), is 76.6%. this suggests that 76.6% of the variation in employees’ innovative behaviour can be agbioforum, 26(2), 2024 | 132 kurji et al — evaluation of work prosperity on promoting employees’ innovative behaviour at the state company… attributed to workplace prosperity, while the remaining 23.4% is influenced by factors not included in the study model. furthermore, the independent variable, workplace prosperity, exhibits a strong level of influence on employees’ innovative behaviour, with a standardised regression coefficient of 0.959. this is statistically significant, as the critical ratio (c.r.) is 13.664, exceeding the threshold value of 1.96 at a significance level of 0.000, as shown in table 6. these results indicate that a positive change of one unit in workplace prosperity results in a 0.959-unit increase in employees’ innovative behaviour. accordingly, the second main hypothesis is accepted, confirming that there is a statistically significant influence of workplace prosperity on employees’ innovative behaviour (hunsaker & ding, 2022). figure 4: the influence of the prosperity of work on the innovative behaviour of employees. source: spss v.28 outputs. table 6: parameters of testing the influence of work prosperity and its dimensions on employees’ innovative behaviour. code regression weights standard error (s.e) critical ratio (cr) p value employees’ innovative behaviour y < work prosperity x 0.959 0.070 664 *** employees’ innovative behaviour y < the vitality dimension of work prosperity x1 0.262 .092 862 0.004 employees’ innovative behaviour y < the learning dimension of work prosperity x2 773 0.120 0.433 *** conclusions and recommendations conclusion the research findings indicate that workplace prosperity has a positive but moderate impact on employee performance, suggesting opportunities for improvement to fully realise its potential benefits. the study identifies the learning dimension as the primary driver of workplace prosperity, underscoring its critical role in fostering competitive advantage through the development of employee skills and the acquisition of knowledge. although employees exhibited positive innovative behaviour, the moderate levels observed suggest untapped potential for further enhancement. the confirmation of the main hypothesis establishes a significant relationship between workplace prosperity and innovative behaviour, offering a clear strategic pathway for organisational development. notably, the learning dimension exerts a stronger influence on innovative behaviour compared to vitality, although both dimensions remain integral components of workplace prosperity. this highlights the importance of prioritising learning initiatives while maintaining a balanced focus on vitality to optimise innovative outcomes. these findings suggest several key recommendations:  organisations should prioritise learning and development programmes to enhance workplace prosperity, focusing on building employee skills and knowledge.  management should implement strategies to elevate both dimensions of workplace prosperity—learning and vitality—from moderate to high levels, fostering a more robust impact on employee performance and innovation.  human resource policies should be aligned to support continuous learning and innovation, creating an environment that encourages employees to develop new ideas and improve their performance.  regular assessment of workplace prosperity metrics should be conducted to monitor progress and adjust interventions as needed, ensuring ongoing improvement in these areas. future research could explore additional dimensions of workplace prosperity and their specific impacts on various aspects of innovative behaviour, particularly across different organisational contexts and industries. this would provide a more comprehensive understanding of how to optimise workplace prosperity initiatives for maximum organisational benefit. agbioforum, 26(2), 2024 | 133 kurji et al — evaluation of work prosperity on promoting employees’ innovative behaviour at the state company… recommendations the present study offers a set of recommendations to enhance workplace prosperity at the general company for agricultural equipment, which, in turn, can influence employees’ innovative behaviour. these recommendations are as follows:  support the process of building and developing workplace prosperity in both its dimensions (vitality and learning), ensuring they work together under a holistic system (torlak, budur, & khan, 2024). their combined influence is greater in promoting employees’ innovative behaviour than the influence of each dimension separately, as an individual who thrives at work demonstrates both vitality and learning in their activities.  given the results of the present study indicating a weak correlation and influence of the vitality dimension compared to the learning dimension, it is necessary to:  create excitement at work to ensure employees feel positively energised, active, and enthusiastic about their tasks. this self-generated energy can then be transferred to colleagues, leading to improved performance.  empower employees by granting them sufficient authority to act in relevant matters and ensuring appropriate work conditions are in place.  organise seminars and workshops to teach employees how to approach work tasks that require higher energy investment and effort, particularly when facing challenges and work pressures.  provide an appropriate organisational climate (optimal working conditions) that shapes and crystallises employees’ behaviours and attitudes towards their work and the company.  increase learning by offering training and development programmes for all employees, tailored to their specific needs, to enable necessary changes and improvements in their knowledge, skills, and attitudes. this will help address work challenges and enhance workplace prosperity.  support and reinforce employees’ innovative behaviour through a motivational system that uses various performance-related incentives to ensure higher efficiency.  recruit individuals with the necessary behaviours and innovative abilities through tests and interviews designed to differentiate between applicants and select the most suitable candidates. limitations and future research directions while this study provides valuable insights, it has several limitations that should be considered for future research. the study was conducted solely at the general company for agricultural equipment, with a sample of 58 managers. as such, the findings may not be generalised to other organisations, industries, or cultures. the study's conclusions may differ due to specific variables, such as company size, structure, and market type. future research should include a broader range of organisations across different industries and cultures, as well as respondents from various organisational levels and departments to improve the validity and generalisability of results. additionally, this study used a cross-sectional design, which only captured data at one point in time. this limits the ability to assess changes in work prosperity and innovative behaviour over time, especially in response to organisational shifts or technological advancements (kör, wakkee, & van der sijde, 2021). this study analysed work prosperity through vitality and learning, but other dimensions like resilience, engagement, satisfaction, and psychological well-being may also influence innovative behaviour. future research should incorporate these additional variables for a more comprehensive understanding. the study focused only on managers, excluding other employees whose experiences may differ. future studies should include employees at various organisational levels to provide a broader, more representative sample and better understand the impact of work prosperity on innovative behaviour across the hierarchy. this study focused on a single organisation, making its findings on work prosperity and innovative behaviour context-specific, influenced by organisational norms, leadership styles, and culture. to validate these results, future research should include cross-sectional studies across different industries and cultures. exploring how cultural and organisational factors may moderate or mediate the relationship between work prosperity and innovative behaviour would also be valuable. the study’s reliance on questionnaires and personal interviews introduces potential biases, such as socially desirable responses. future research should incorporate diverse data collection methods to reduce bias and improve accuracy. while this study identified work prosperity as a positive factor influencing innovative behaviour, it did not consider moderating variables such as job satisfaction, organisational commitment, or factors like leadership style and team dynamics. understanding these mechanisms could further advance knowledge on how and when work prosperity impacts the innovation process. future research should incorporate mediator and moderator analyses to explore how work prosperity enhances or suppresses innovation. for instance, examining how leadership support strengthens work prosperity or how job stress might diminish it could provide valuable insights. work prosperity was defined and measured using available resources, technology, promotion, and organisational rewards, and the study followed a static model. however, work processes are dynamic and influenced by employee needs and feedback, which evolve over time. future research should adopt dynamic modelling techniques or system dynamics to model the interactions of these variables over time, providing a more accurate depiction of organisational behaviour and offering insights into how interventions can sustain work prosperity and innovation in the future (ajmal, sareet, & islam, 2025). although the study provided general recommendations for the general company for agricultural equipment, agbioforum, 26(2), 2024 | 134 kurji et al — evaluation of work prosperity on promoting employees’ innovative behaviour at the state company… these were not organisation-specific, and the potential for generalisation to other industries and sectors 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mahmood et al., 2020; salam et al., 2022) have highlighted the pivotal role bsf larvae play in producing insect-derived bioactive compounds including chitin, lipids, and proteins. these compounds offer promising alternatives for addressing global issues such as food insecurity, malnutrition, and environmental degradation associated with conventional livestock farming—particularly due to their contribution to greenhouse gas and co₂ emissions (mohan et al., 2022; nekrasov et al., 2022). owing to their high protein content, bsf larvae are widely applied in agricultural, biological, and pharmaceutical contexts. traksele et al. (2021) demonstrated that these larvae also contain high-density lipoproteins, which he et al. (2024) identified as suitable alternative protein sources, such as fishmeal, frogmeal, chickenmeal, and birdmeal (tippayadara et al., 2021). to ensure sustainable rearing, bsf larvae should be cultivated using low-cost, environmentally sound methods that reduce greenhouse gas emissions and minimise water consumption across industries. their by-products also contribute to soil restoration through the generation of organic fertilisers, thereby reducing dependence on chemical alternatives (rehman et al., 2023). external environmental factors significantly influence larval development parameters such as growth rate, survival rate (%), feed intake, feed efficiency, and feed conversion ratio. for instance, optimal growth is observed at temperatures between 26–40°c, with peak feeding performance around 35°c (singh et al., 2022). consequently, bsf cultivation does not necessitate temperature-controlled facilities, reducing operational costs. the nutritional quality of larvae is affected by both dietary composition and environmental conditions including temperature, humidity, light, and food type. elevated temperatures may shorten the larval life span, whereas starch and sugar diets enhance longevity, and protein-rich diets promote reproductive performance. mature larvae contain notable levels of protein, omega fatty acids, fibre, calcium, and lauric acid, making them ideal for inclusion in various animal feeds. during their life cycle, the protein and fat content vary: larvae (1–14 days) contain protein ranging from 38–56% and fat between 4–28%; prepupae contain 40.2–40.4% protein and 24.2–28.0% fat; pupae possess 43.8–46.2% protein and 7.2–8.2% fat. according to mlambo et al. (2023), male adults contain 44.0% protein and 32.2% fat, whereas females contain 43.8% protein and 30.6% fat. drying larvae, typically in ovens, is critical in producing high-protein animal meals, significantly reducing the reliance https://orcid.org/0000-0002-8027-8445 mailto:sitthisak.pi@up.ac.th https://orcid.org/0009-0007-6231-6405 mailto:thanakornbanky@gmail.com https://orcid.org/0000-0003-4110-0780 mailto:warach.ma@up.ac.th agbioforum, 27(1), 2025 | 42 pinmongkhonkul et al — influence of growth and protein content of black soldier fly larvae (hermetia illucens l.) reared with… on soybean feed. this processing yields a final product with over 45% protein, 35% fat, and an energy value of approximately 2,900 kcal/kg. additionally, the processed product has antimicrobial properties, offering resistance against various pathogens including viruses, bacteria, fungi, and parasites, making it a marketable commodity valued at approximately 500 thb/kg, while dried larvae may fetch between 1,200–1,400 thb/kg (bana et al., 2023). currently, bsf larvae are widely acknowledged as a sustainable alternative energy source for the agriculture and food sectors. their ability to efficiently biodegrade organic waste within roughly four weeks enables the conversion of discarded matter into nutritionally rich biomass. bsf typically contain 36–39% protein, 28–34% fat (dry matter basis), and approximately 22% calcium—higher than most other insects (weththasinghe et al., 2021). their high protein and glycerol content supports applications in food science and biodegradable material production, such as bio-based plastics (nuvoli et al., 2021). in the pharmaceutical and cosmetics sectors, bsf-derived chitin—the second most abundant natural polysaccharide—has shown considerable promise in skincare and personal care products (almeida et al., 2022; triunfo et al., 2021), while also serving as a raw material for biodiesel production (franco et al., 2021). the motivation behind this research lies in the increasing global population, which has escalated food demand and underscored the urgent need for sustainable protein sources. bsf offer a viable solution, especially for the animal feed, waste management, and eco-friendly production sectors, with a considerably lower environmental impact than traditional animal protein sources. in this context, the study focused on ban so village in mae na ruea, phayao, thailand, where crops such as namwa bananas, pumpkins, and mangoes are abundantly cultivated around households and farms. due to overproduction, surplus fruits and vegetables often become waste, creating environmental issues through decay and unpleasant odours. prior research (isibika et al., 2023; mohd rasdi et al., 2022; ribeiro et al., 2022) supports the notion that such biodegradable waste, which is commonly discarded in local markets, provides a suitable substrate for bsf cultivation. given the rapid growth and nutrient recycling capacity of bsf, this study sought to evaluate the comparative impact of different local food sources—including namwa bananas and pumpkins— on larval development, nutrient content, and waste decomposition efficacy. materials and methods materials materials and equipment used in breeding the black soldier fly larvae this study utilised experimental materials and equipment to breed black soldier fly larvae, using agricultural waste fruits sourced from the market in ban so village, mae na ruea, phayao, thailand. the selected fruits included namwa bananas, pumpkins, and mangos. the equipment used in the setup comprised plastic baskets, wooden sheets, rubber bands, pvc pipes, netting, plastic tanks, plastic sheets (size 1×1, quantity: 8 sheets), needles, a digital scale, knives, glass plates, and rice bran. equipment and chemicals used to test proteins in food and the black soldier fly larvae the laboratory experiment will test the protein content in namwa bananas, pumpkins, mangos, and black soldier fly larvae using a kjeldahl nitrogen analyzer. the chemicals used include sulfuric acid (h2so4), boric acid (h3bo3), hydrochloric acid (hcl), sodium hydroxide (naoh), copper (ii) sulfate (cuso4), potassium sulfate (k2so4), methyl red, bromocresol green, deionized water (di), and dissolved oxygen (do). equipment used to collect experimental results field tools used to measure external conditions influencing the growth rate and protein content of black soldier fly larvae include a digital vernier (for growth rate), an olympus microscope (for physiological observation), a light meter (for light intensity), a glass thermometer (for temperature), a hygrometer (for relative humidity), and a dehydrator. population and sample the experiment will divide the larvae population equally into four groups, each fed different food waste formulas: pumpkin: rice bran, namwa banana: rice bran, mango: rice bran, and mixed fruits: rice bran, with 50 larvae per formula. experimental preparation in the first step, construct a greenhouse measuring 1.5x1.5 meters using pvc pipes, cover it with netting, and set up the environment to resemble real-life conditions. in the second step, prepare food to attract adult black soldier flies to lay eggs in a plastic tank, with a mixture of various vegetables and fruits on a plastic sheet. in the third step, set up four feeding formulas using three types of fruits: pumpkin with rice bran, namwa banana with rice bran, mango with rice bran, and mixed fruits with rice bran. each fruit mixture consists of 300 grams of fruit per 100 grams of rice bran in a plastic bucket. the eggs were hatched in each formula until the larvae reached 10 days of age, at which point 50 larvae from each formula were transferred. subsequently, the larvae were fed approximately 500 grams of fruit per 100 grams of rice bran in a plastic bucket until they reached 17 and 24 days of age, when they entered the pupal stage and were suitable for protein content analysis using the kjeldahl method. finally, the larvae at 10, 17, and 24 days old were measured for body size and weight to calculate the average. additionally, humidity, temperature, and light values were recorded daily, and the nutritional value was analysed (figure 1). figure 1. experimental preparation; a: prepared the black soldier eggs; b: eggs were reared with the mango formula; c: eggs were reared with the pumpkin formula; d: eggs were reared with the banana formula; e: eggs were reared with the mixed fruits. agbioforum, 27(1), 2025 | 43 pinmongkhonkul et al — influence of growth and protein content of black soldier fly larvae (hermetia illucens l.) reared with… kjeldah method digestion test the digestion test involves the chemical analysis of samples, where each specimen is treated with concentrated h₂so₄ under high temperatures. chemical catalysts such as copper(ii) sulfate (cuso₄), potassium sulfate (k₂so₄), sodium sulfate (na₂so₄), and ferrous sulfate (feso₄) are added to facilitate the conversion of nitrogen present in the sample. upon combining the sample with these substances, ammonium sulfate (nh₄)₂so₄ is formed, as illustrated in the equation. high temperatures + catalysts a sample + conc. h2s04 → (nh4)2 so2 distillation test the distillation test involves the chemical elimination or modification of substances in the samples. ammonium sulfate is eliminated using naoh (caustic soda), an alkaline and highly corrosive base. subsequently, the distilled ammonium reacts with h₃bo₃, as outlined in the equation. (nh4)204 + naoh → nh3 + h20 + na2s04 nh3 + h20 → nh40h nh4oh + h3b03 → nh4 + h20 + h3b03 green colour complex titration test h₃bo₃, which is bound to nh₃ gas, is titrated with a standard solution, such as hcl or h₂so₄, to determine the total nitrogen content in the sample. hcl h2b03 + h+ → h3b03 colour change reverse red colour method of analysis in the initial step, approximately 1 gram of the sample (the actual weight used in the analysis) was placed onto filter paper no. 42, which was free from nitrogen. to this, 9 grams of k4so4, 1 gram of cuso4, and 5 glass beads were added to prevent bumping. subsequently, concentrated h2so4 was carefully introduced, amounting to approximately 30 ml, while gently shaking the tube to ensure proper mixing in a fume hood. the samples were then placed on a digestion block at temperatures ranging from 200 to 350°c for 1 hour to ensure complete oxidation. after cooling, approximately 70 ml of deionised water (di water) was added to the sample. the sample was then transferred to a distillation apparatus, along with a cooling bath circulator, which was activated for 45-60 minutes. following this, a 40% naoh solution, with a total volume of 6,000 ml, was prepared in a plastic bucket, to which reverse osmosis (ro) water was added. the naoh solution (60 ml) was allowed to react for 5 minutes. an indicator solution was prepared by mixing 20 ml of h3bo3 in a 500 ml erlenmeyer flask, after which the distillation test was conducted. finally, the titration value was calculated using the standard formula, and the protein content was determined by multiplying the obtained value by the protein constant, as per the equation. nitrogen (%) = (a − b)×0.014×n×100 w a = standard solution used for titration test (ml) b = blank solution (ml) n = concentration of standard solution (n) w = weight of the sample (g) (%crude protein) = % n × f n = concentration of hcl (n) f = factor value (6.25) statistical data analysis the results of the statistical analysis were examined using spss (statistical product and service solutions) version 26.0. statistical methods employed included dmrt (duncan’s multiple range test) at a 95% confidence level (p<0.05) and anova (analysis of variance). results environmental factors the environmental variables assessed included temperature, light intensity, and relative humidity, with measurements taken on seven separate occasions. these assessments were conducted at three-day intervals. among the recorded data, the highest temperature within the breeding environment was observed during the fifth interval, reaching 30.40°c. this was followed by the third interval at 30.20°c, and the seventh at 29.00°c. in contrast, the second interval recorded the lowest temperature, measuring 26.60°c. regarding light intensity, the maximum value was recorded in the fifth interval at 2,420 lux, with subsequent high readings of 1,980 lux during the second interval and 1,527 lux in the fourth. conversely, the sixth interval showed the minimum light intensity of 618 lux. relative humidity measurements indicated that the first and second intervals had the highest levels, each recording 88%. the third interval followed closely with a humidity level of 87%, while the lowest humidity was noted in the fifth interval at 74%. furthermore, the overall averages across all measurements revealed that the mean light intensity was 1,420.14 ± 642.36 lux, the mean relative humidity stood at 80.86 ± 6.44%, and the average temperature was 28.35 ± 1.52°c. the average moisture content in the feed was found to be 82.24 ± 5.25%. these findings are summarised in table 1. table 1: environmental factors in the breeding house. times the temperature (°c) the light intensity (lux) the relative humidity (%) 1 27.00 1,507 88 2 26.60 1,980 88 3 30.20 790 87 4 27.60 1,527 77 5 30.40 2,420 74 6 27.70 618 76 7 29.00 1,099 76 agbioforum, 27(1), 2025 | 44 pinmongkhonkul et al — influence of growth and protein content of black soldier fly larvae (hermetia illucens l.) reared with… regarding temperature variations across each dietary formulation, it was observed that the highest temperatures occurred during the fifth measurement for the pumpkin, namwa banana, mango, and mixed fruit meals, registering approximately 34°c, 33°c, 30°c, and 31°c, respectively. in contrast, the lowest recorded temperatures, all measuring 26°c, were observed during the first and second intervals across all four diet types (table 2). additionally, the mean temperatures associated with each meal type were as follows: namwa banana meal recorded 29.36 ± 3.07°c, pumpkin meal averaged 29.79 ± 3.11°c, mango meal showed 27.07 ± 1.68°c, and the mixed fruit meal presented 28.07 ± 1.81°c. statistical analysis revealed a significant difference between these values (p < 0.05) (table 3), with temperature data further detailed in relation to the diets administered to the larvae (table 4). table 2: the temperature in the formula. times pumpkin: rice bran namwa banana: rice bran mango: rice bran mixed fruits: rice bran 1 26 26 26 26 2 26 26 26 26 3 28 29 28 27 4 33 30 26 27 5 34 33 30 31 6 29 31 27 29 7 30 28 27 29 table 3: the average temperature in the formula. formula x̅±s.d. (degrees celsius) namwa banana: rice bran 29.36±3.07* pumpkin: rice bran 29.79±3.11* mango: rice bran 27.07±1.68* mixed fruits: rice bran 28.07±1.81 note: *there is a statistically significant difference (p<0.05). table 4: the temperature statistics are in the formula. formula p. value namwa banana pumpkin: rice bran mango: rice bran mixed fruits: rice bran 0.654 0.020* 0.182 pumpkin namwa banana: rice bran mango: rice bran mixed fruits: rice bran 0.654 0.006* 0.077 mango namwa banana: rice bran pumpkin: rice bran mixed fruits: rice bran 0.020* 0.006* 0.289 mixed fruits namwa banana: rice bran pumpkin: rice bran mango: rice bran 0.182 0.077 0.298 note: *there is a statistically significant difference (p<0.05). the growth of the black soldier larvae the weekly assessment of black soldier fly larvae growth revealed the quantity of food waste remaining after consumption of the namwa banana, pumpkin, mango, and mixed fruit meals to be 518.78 ± 122.75 grams, 543.06 ± 93.24 grams, 590.83 ± 165.08 grams, and 548.45 ± 139.83 grams, respectively. among these, larvae fed the mangobased diet exhibited the highest consumption rate, followed by those provided with the mixed fruit formulation. conversely, the namwa banana meal resulted in the lowest consumption compared to the other diets. however, statistical analysis indicated no significant difference (p < 0.05) (table 5). overall, food consumption across all four diets by groups of 50 larvae ranged between 518 and 590 grams, indicating relatively similar levels of intake. the survival rate of black soldier fly larvae fed different diets indicated that the pumpkin-based meal resulted in the highest survival, with all 50 larvae surviving. this was followed by the mixed fruit diet, which yielded an average survival of 47.17 ± 4.40 individuals, the mango diet at 47.00 ± 2.75 individuals, and the namwa banana diet at 44.17 ± 5.19 individuals—the lowest among the four. despite these differences, statistical analysis revealed no significant variation (p < 0.05) (table 6). in general, survival across all dietary groups of 50 larvae ranged between 44 and 50 individuals, reflecting relatively similar outcomes. table 5: the average food intake after eating of the formula used to feed the black soldier larvae. formula x̅±s.d. (grams) namwa banana: rice bran 518.78±122.75 pumpkin: rice bran 543.06±93.24 mango: rice bran 590.83±165.08 mixed fruits: rice bran 548.45±139.83 note: *there is a statistically significant difference (p<0.05). table 6: the survival rate. formula x̅±s.d. (body) namwa banana: rice bran 44.17±5.19 pumpkin: rice bran 50.00±0.00 mango: rice bran 47.00±2.75 mixed fruits: rice bran 47.17±4.40 note: *there is a statistically significant difference (p<0.05). in addition, the assessment of the average larval body length demonstrated that larvae fed the namwa banana diet measured 17.13 ± 3.17 millimetres, those given the pumpkin meal reached 17.56 ± 3.05 millimetres, the mango group attained 18.19 ± 3.62 millimetres, and those consuming the mixed fruit diet achieved 18.30 ± 3.57 millimetres. these differences, however, were not statistically significant (p < 0.05) (table 7). regarding body weight growth, the highest value was observed in the pumpkin diet, with a mean of 7.72 ± 4.32 grams, followed by the mixed fruit diet at 7.55 ± 4.62 grams, and the mango diet at 6.28 ± 4.39 grams. the lowest value was found in the namwa banana diet, which had a mean of 5.09 ± 3.54 grams. statistical analysis revealed no significant differences (p < 0.05) (table 8). table 7: the body length. formula x̅±s.d. (millimetres) namwa banana: rice bran 17.13±3.17 pumpkin: rice bran 17.56±3.05 mango: rice bran 18.19±3.62 mixed fruits: rice bran 18.30±3.57 note: *there is a statistically significant difference (p<0.05). table 8: the body weight. formula x̅±s.d. (grams) namwa banana: rice bran 5.09±3.54 pumpkin: rice bran 7.72±4.32 mango: rice bran 6.28±4.39 mixed fruits: rice bran 7.55±4.62 note: *there is a statistically significant difference (p<0.05). protein content of the black soldier larvae the protein content in black soldier larvae reared on different fruit-based diets, including namwa bananas, pumpkins, mangos, and mixed fruits, varied considerably. agbioforum, 27(1), 2025 | 45 pinmongkhonkul et al — influence of growth and protein content of black soldier fly larvae (hermetia illucens l.) reared with… the pumpkin diet yielded the highest protein content, with a mean of 40.87 ± 0.87%, followed by the mixed fruit diet at 39.84 ± 2.16%, and the namwa banana diet at 38.15 ± 0.92%. the mango diet exhibited the lowest protein content, at 34.81 ± 0.35%. statistical analysis indicated a significant difference (p < 0.05) (table 9), with further details provided on body weight statistics in table 10. table 9: the protein content. formula x̅±s.d. (%) namwa banana: rice bran 38.15±0.92* pumpkin: rice bran 40.87±0.87* mango: rice bran 34.81±0.35* mixed fruits: rice bran 39.84±2.16* note: *there is a statistically significant difference (p<0.05). table 10: statistics of the protein content. formula p. value namwa banana pumpkin: rice bran mango: rice bran mixed fruits: rice bran 0.085 0.049* 0.230 pumpkin namwa banana: rice bran mango: rice bran mixed fruits: rice bran 0.085 0.007* 60.44 mango namwa banana: rice bran pumpkin: rice bran mixed fruits: rice bran 0.049* 0.007* 0.013* mixed fruits namwa banana: rice bran pumpkin: rice bran mango: rice bran 0.230 0.44 0.013* note: *there is a statistically significant difference (p<0.05). discussion environmental factors the study revealed that the relative humidity was 80.86 ± 6.44%, the temperature was 28.35 ± 1.52°c, and the humidity in food was 82.24 ± 5.25%, consistent with the findings of pazmiño-palomino et al. (2022), who noted that this insect species typically inhabits tropical and subtropical regions, as well as temperate climates or hot areas. singh et al. (2022) observed that the optimal environmental conditions for this species were a temperature of 27°c and relative humidity ranging from 40% to 70%. when comparing these theoretical conditions with the study results, the temperature of approximately 28°c and relative humidity of 80% in the present study were in line with those reported by singh et al. (2022). additionally, it was found that this insect requires sufficient light exposure for the proper development of its length and weight ratio, particularly during the breeding season. the larvae of the black soldier fly were reared in high-temperature conditions, which supported high survival rates. however, when temperatures exceeded 40°c, adult numbers decreased, and growth rates and survival ratios were negatively impacted, likely due to dehydration, high water evaporation, metabolic dysfunction, and systemic imbalances. fazli qomi et al. (2021) similarly found that elevated temperatures, particularly those exceeding 40°c, negatively affected the hatching of eggs and the transition through various life stages, including larvae, pre-pupa, pupa, and adult. they also observed that such conditions resulted in shorter lifespans, slower metabolism, and reduced growth rates. conversely, rearing larvae at the optimal temperature of around 30°c promoted faster growth, particularly in terms of body length and vital appendages, as well as improved survival and reproductive development. thus, temperature conditions were shown to significantly influence the growth rate and reproduction of insects, with higher temperatures leading to a decline in growth rates and survival. these findings corroborate previous research, which demonstrated that environmental temperature affects various biological factors, such as survival rates, lifespan, growth rates, fertility, gender ratios, population density, and growth parameters, while also increasing the risk of disease outbreaks, including viral, bacterial, fungal, and parasitic infections (binoy et al., 2023). moreover, the study indicated that the light intensity within the greenhouse was 1,420.14 ± 642.36 lux, and the humidity was 80.86 ± 6.44%, conditions that were conducive to rapid egg spawning and hatching within four meals, particularly rotten fruit, after 3-4 days. the insects laid between 400-900 eggs, which aligns with the findings of cai et al. (2022) and kim et al. (2021), who suggested that a relative humidity range of approximately 60-70% and a light intensity of around 135-200 µmol/m² could promote efficient breeding during the breeding season. these insects are also resilient to extreme conditions, including high light intensity and relative humidity. females typically lay eggs in clusters in dry areas near cracks, crevices, or decaying materials that maintain higher humidity, and the larvae hatch within approximately four days, which is the optimal time for reaching adulthood. the growth of the black soldier larvae the first growth rate and survival rate across different food formulations demonstrated that the pumpkin meal significantly enhanced the survival rate, with a full 50.00 ± 0.00 bodies surviving, followed by the mixed fruit meal with 47.17 ± 4.40 bodies, and the mango meal with 47.00 ± 2.75 bodies. in contrast, the namwa banana meal exhibited the lowest survival rate, with only 44.17 ± 5.19 bodies surviving. this is likely due to pumpkins containing higher protein content compared to other fruits, being 7.56% richer in protein than namwa banana, mango, and mixed fruits, which may have contributed to the increased survival rate during the larvae, pre-pupal, pupal, and adult stages, achieving a 100% survival rate. this finding corresponds with the research by ribeiro et al. (2022), who studied the effects of seven different fruit and vegetable types (wheat bran, pumpkin, apple, grape pomace, red onion, red cabbage, and spinach) at three temperature settings (20°c, 25°c, and 30°c) and two humidity levels (natural and 70% substrate moisture). ribeiro et al. (2022) demonstrated that pumpkins, including all parts such as peel, seeds, and pulp, contain between 1% and 2.2% protein, higher than apples and red onion. furthermore, larvae fed with pumpkin meal exhibited good bioconversion, with feed efficiency values ranging from 14.4 to 25 and a survival rate between 81.6% and 92.4%, which was relatively high. regarding body length, the mixed fruit meal resulted in the longest body length at approximately 18.30 ± 3.57 millimetres, followed closely by mango with an average of 18.19 ± 3.62 millimetres. the pumpkin meal resulted in a agbioforum, 27(1), 2025 | 46 pinmongkhonkul et al — influence of growth and protein content of black soldier fly larvae (hermetia illucens l.) reared with… body length of 17.56 ± 3.05 millimetres, while namwa banana provided the shortest body length at 17.13 ± 3.17 millimetres. the difference in body length can be attributed to the higher carbohydrate content in the mixed fruits, which included pumpkin, mango, and banana, all of which are rich in carbohydrates but lower in protein. carbohydrates contribute to cell expansion, increasing the length of body segments and elongating the insect’s limbs and abdomen during the adult phase. in terms of body weight, larvae fed on the pumpkin meal showed the highest weight at 7.72 ± 4.32 grams, followed by the mixed fruit meal at 7.55 ± 4.62 grams. the mango meal resulted in a weight of 6.28 ± 4.39 grams, while the namwa banana meal led to the lowest weight at 5.09 ± 3.54 grams. this research recorded that body length increased rapidly from 1.4 to 17.6 millimetres, and body weight from 44.7 to 204.6 milligrams, between days 10 and 24, when larvae consumed the pumpkin meal. these findings align with the study by ribeiro et al. (2022), who found that pumpkins contained the highest carbohydrate content (23.2%) compared to other fruits and vegetables, particularly in meals with 70% substrate moisture. similarly, liu et al. (2023) reported that body length increased from 4.0 to 16.1 millimetres, and body weight from 0.6 to 136.7 milligrams, from day 0 to day 11, when larvae were fed organic vegetables, leading to increased tissue development and weight gain. this study suggests that pumpkins, with their higher protein content compared to other vegetables, are more effective at promoting tissue development, while mixed fruits, despite their balanced protein content, are insufficient for optimal tissue production. protein content of the black soldier larvae the analysis of different fruit-based food sources for black soldier larvae revealed varying protein content across the meals. bananas mixed with rice bran contained approximately 3.62% protein, while pumpkins mixed with rice bran contained a significantly higher 7.56%. mangoes mixed with rice bran offered 3.12% protein, and mixed fruits with rice bran had 5.12%. additionally, scientific research from sá et al. (2023) and habib et al. (2025) reported that pumpkin seeds are rich in protein, with values ranging from 24.0% to 36.5%, averaging 33%. these findings underscore the potential of utilizing organic waste from pumpkins as a sustainable source of protein, which could help mitigate food waste in rural villages and provide a cost-effective food supplement for agricultural work, including animal feed in intensive farming environments (e.g., frog, fish, and chicken rearing). this approach could also help reduce the reliance on expensive commercial feed. in terms of protein content, larvae consuming pumpkin meal exhibited the highest protein assimilation at 40.87 ± 0.87%, followed by mixed fruits (39.84 ± 2.16%), namwa banana (38.15 ± 0.92%), and mango meal (34.81 ± 0.35%). these values are consistent with the findings of mlambo et al. (2023), which reported that the crude protein levels in larvae ranged from 38% to 43% when they were fed chicken, fish, and bird meals during their 1 to 14-day life stage. furthermore, hopkins et al. (2021) demonstrated that larvae fed fish waste, particularly from sardinella aurita, exhibited the highest protein content at 78.8%, whereas those fed fruits and vegetables had a lower protein content, ranging from 12.9% to 20.1%. according to established theories, black soldier larvae fed high-protein and high-fat meals tend to exhibit higher growth rates compared to those fed lower-protein, lower-fat meals. additionally, moderate or large amounts of nutrient-rich food lead to the production of larger pupae compared to those reared on low-nutrient diets. therefore, the protein content of the diet plays a crucial role in the synthesis of proteins, which are essential nutrients for future consumers, such as animals and humans. this research suggests that further studies should explore the potential for enhancing protein production in black soldier larvae through the analysis of food waste and its impact on farm animal growth in agriculture. this would open up opportunities for sustainable, low-cost protein sources for animal feed and other agricultural applications. conclusion the study identified key environmental factors within the greenhouse that influenced the growth and development of black soldier fly larvae. the average light intensity was recorded at 1420.14 ± 642.36 lux, with a relative humidity of 80.86 ± 6.44% and an average temperature of 28.35 ± 1.52°c. additionally, the moisture content in the food provided to the larvae was 82.24 ± 5.25%. these environmental conditions supported optimal larval development, as reflected in the performance metrics across different food formulas. the highest survival rate was observed in larvae fed the pumpkin meal, with 50.00 ± 0.00 individuals surviving. the maximum average body length (18.30 ± 3.57 mm) was recorded in the group fed mixed fruits, while the highest body weight (7.72 ± 4.32 g) and protein content (40.87 ± 0.87%) were achieved with the pumpkin meal. these findings suggest that the pumpkin-based diet not only enhances protein synthesis but also supports better larval growth compared to other food types. therefore, pumpkin meals are particularly effective in promoting higher growth rates and increased protein content in black soldier fly larvae, making them a valuable dietary component for sustainable insect farming. data availability the data that support the findings of this study are available on request from the corresponding author. conflicts of interest the authors declare that they have no conflicts of interest. acknowledgments this research was supported by university of phayao and thailand science research and innovation fund (fundamental fund 2025, grant no. 5034/2567). references almeida, c., murta, d., nunes, r., baby, a. r., fernandes, â., barros, l., rijo, p., & rosado, c. 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(2021). a systematic meta‐analysis based review on black soldier fly (hermetia illucens) as a novel protein source for salmonids. reviews in aquaculture, 14(2), 938-956. https:// doi.org/10.1111/raq.12635 https://doi.org/10.3897/bdj.10.e90146 https://doi.org/10.1007/s13762-021-03524-7 https://doi.org/10.1177/0734242x221105441 https://doi.org/10.1177/0734242x221105441 https://doi.org/10.3390/insects13070639 https://doi.org/10.1016/j.foodres.2023.112876 https://doi.org/10.1016/j.foodres.2023.112876 https://doi.org/10.1016/j.eti.2022.102649 https://doi.org/10.55446/ije.2022.166 https://doi.org/10.3390/ani11010193 https://doi.org/10.1016/j.jff.2021.104402 https://doi.org/10.3390/cosmetics8020040 https://doi.org/10.1111/raq.12635 https://doi.org/10.1111/raq.12635 agbioforum, 27(1): 1-19. ©2025 agbioforum yusa et al — social influence and purchase intentions in food tourism: the interplay of media, store displays, and collectivist ... social influence and purchase intentions in food tourism: the interplay of media, store displays, and collectivist culture among indonesian tourists viola de yusa doctoral programs, faculty of economics and business, university of lampung, indonesia. email: viola.d.yusa@gmail.com mahrinasari ms* faculty of economics and business, university of lampung, indonesia. email: mahrina.sari@feb.unila.ac.id satria bangsawan faculty of economics and business, university of lampung, indonesia. email: satria.bangsawan@feb.unila.ac.id the purpose of this study was to analyze social media marketing, offline store displays, and their effects on fear of missing out (fomo) and purchase intention. this study also analyzes the mediating role of fomo on purchase intention and the moderating role of collectivism culture to strengthen the influence of fomo on purchase intention. the research method was a survey conducted on 420 domestic tourists who traveled with family, friends, and groups. tourists have three social media accounts including facebook, instagram, and tiktok, and tourists who have watched digital content marketing shows of food souvenir shops. the research data were analyzed using structural equation modeling (sem) and the lisrel 8.8 program to test the influence between variables. the research findings show that social media marketing, and offline store displays affect fomo and purchase intention. fomo mediates offline store displays and social media marketing on purchase intention. collectivism culture has a strengthening effect on the influence of fomo on purchase intention. the results of this study have implications for business actors to create marketing campaigns that utilize fomo by highlighting limited editions or trending products and considering collectivist values in their marketing strategies. the theoretical contribution of this study is the strengthening of the offline store display model, and social media marketing on purchase intentions mediated by fomo and moderated by collectivism culture, by integrating sor (stimulus organism response theory) and group efficacy theory. keywords: offline store display, social media marketing, fear of missing out (fomo), purchase intention, collectivism culture. introduction the arrival of tourists to indonesia greatly supports the economic growth of local communities. tourism contributes to national income and has the potential to increase development in various regions (yacob et al., 2020). indonesia continues to strive to increase its tourist visits. based on data from bps, the number of domestic tourist trips has increased compared to 2022. domestic tourist trips in 2023 amounted to 825,797,301, while in 2022 it amounted to 734,864,693 (badan pusat statistik, 2024). an important factor in tourism travel is culture, which includes the attractions of tourists and elements that influence their behavior (sharmin et al., 2021). tourists from indonesia usually travel with their friends and family (cahyadi & newsome, 2021). this fact indicates that the travel behavior of indonesian domestic tourists is shaped by their collectivist culture. narotama & wihastuti (2024) stated that the majority of tourists travel with their families, specifically for recreational purposes. societies with collectivist cultures tend to use online social networks less than those with individualist cultures (ji et al., 2010; marques et al., 2018). domestic tourists often do several activities when traveling. when on vacation and traveling in a particular city, there are many places or shopping centers that can be chosen to buy souvenirs easily and practically by tourists. the many tourist attractions in indonesia are increasingly mushrooming places that sell various souvenirs typical of tourist areas. tourist destinations for travelers are not only to visit tourist attractions but also to bring home souvenirs typical of the area so that they can be enjoyed by their beloved family, friends, and friends at home. we often hear the sentence "don't forget the souvenirs." this sentence is what we often hear when we are traveling or going to an area for a vacation (virananda, 2018). food souvenirs are increasingly popular because food plays a significant role in a vacation. factors that influence tourists' preferences when purchasing food souvenirs during a vacation include quality, taste, local origin, and the perceived authenticity of the food (altintzoglou, heide, & borch, 2016). food is a significant tourism product that can enhance the overall experience of tourist destinations (yeoman & mcmahon-beatte, 2016). food souvenirs can effectively promote cultural destinations and significantly impact the economies of those destinations (huang, bai, & gong, 2020). the rapid development of technology is a driving factor behind the continuous and rapid changes in food souvenir trends, which keeps people interested in following these developments. technological advances and easier access to technology have simplified the process of receiving information, making it possible for individuals to read or view posts about other people's lives. this exposure can motivate them to compare their lives to what they observe in social media posts (abel, buff, & burr, 2016; yani & rojuaniah, 2023). this leads individuals to frequently feel dissatisfied with their own lives and actions. this phenomenon gives rise to the behavior of people who don't want to miss out, which is called fear of missing out (fomo), which is a condition where someone doesn't want to miss out on the fun that other people do and tries to stay mailto:viola.d.yusa@gmail.com mailto:mahrina.sari@feb.unila.ac.id mailto:satria.bangsawan@feb.unila.ac.id agbioforum, 27(1), 2025 | 2 yusa et al — social influence and purchase intentions in food tourism: the interplay of media, store displays, and collectivist ... connected with that person virtually (przybylski et al., 2013). fomo can influence consumer attitudes and behavior as a potential attraction to increase sales (good & hyman, 2020). in the context of tourism travel, fomo can play an important role in shaping food souvenir choices among tourists. when fomo is related to food souvenir purchases, it can be a feeling of wanting to try or have a particular food because of seeing others enjoying it or because the food is considered popular or famous in a place. the high use of the internet and social media in indonesia is thought to be the cause of the emergence of fear of missing out. excessive use of social media can also lead to addiction, where individuals feel compelled to continuously open their accounts to connect with others through the platform (aryati & halimah, 2021; brown, 2018). in the digital era, many tourists want to document their travel experiences on social media. when tourists travel, they usually look for information about food souvenirs that are trending or viral in the tourist destinations they visit, either through recommendations from friends, family, or groups, or posts on social media. when group members buy food souvenirs and show them off on social media, this can trigger fomo among other tourists who have not yet purchased them. they may feel compelled to buy the same product to share similar experiences on their social media platforms, as well as to show that they are also enjoying the same moment. fomo phenomenon affects people not only in the digital realm but can also be triggered by marketing strategies in physical stores. this is particularly evident in how displays and product arrangements capture consumers' attention. in a retail environment, fomo is often generated through various visual elements, exclusive offers, and shopping experiences that create a sense of urgency and immediate desire. research (dixit & singh, 2018) has found a significant relationship between display cases, fixtures, signage, mannequins, colors, and lighting and consumer purchasing behavior. additionally, promotional signage is crucial for enhancing the store's image. in-store signage and product information displayed in aisles and on shelves help retailers attract customers and boost sales, while effective visual merchandising plays a significant role in shaping the overall store image. travelers who journey in groups are often influenced by the feelings and choices of other group members, particularly regarding the fomo. in cultures that prioritize collectivism, values such as togetherness and group harmony are essential. this sense of unity often extends to tours, especially when a group of tourists visits a souvenir shop that sells local food. when some members of a group start purchasing a particular food souvenir, other travelers may feel compelled to buy it as well. this urge often arises from a desire to fit in and feel connected to the group. social pressure reinforces this conformity, as individuals may feel the need to align their choices with those of the majority to avoid feeling different or isolated. additionally, food souvenirs are often perceived as more than just consumer goods; they can symbolize a shared experience during the trip. when several group members buy food typical of the destination, it becomes part of the travel story that will be shared both during the trip and after returning home. travelers who choose not to buy may feel they are missing out on an essential part of the experience, which encourages them to purchase the items as well to share in the same symbolism. literature review and hypothesis development teori stimulus, organism, response (sor) the stimulus-organism-response (sor) theory was proposed by hovland et al. (1953). it posits that humans possess components such as attitudes, opinions, behavior, cognition, affection, and connections (itanghi, cheo, & julius, 2023). in this theory, stimulus is conceptualized as an influence on the internal organism of an individual. the individual, represented by cognitive and affective aspects, interacts with intermediaries and processes that mediate the relationship between the stimulus and the individual's response. this relationship is examined through the lens of consumer behavior (park & lennon, 2009). organisms represent the internal processes by which consumers transform stimuli into perceptions, emotions, or experiences (li, dong, & chen, 2012; palamidovskasterjadovska, prodanova, & ciunova-shuleska, 2024). the organism pertains to the emotional and cognitive states of humans, such as their perceived quality and perceived value, which influence their responses (wu & li, 2018). a person's attitude is influenced by their internal responses, while their external responses affect their behaviors (lorenzo-romero, alarcon-del-amo, & gómez-borja, 2016). consequently, the information presented on offline store displays and social media can impact consumer behavior (izogo et al., 2017; pyo, 2020). in this context, fear of missing out is allocated as an organism and refers to the cognitive and emotional state resulting from the experience of social media marketing activities and offline store displays, while consumer-based purchase intention acts as the response. group efficacy group efficacy is based on social cognitive theory, which posits that beliefs about an individual’s or group’s ability to organize and execute the necessary actions to manage a given situation impact how people think, feel, motivate themselves, and behave. efficacy beliefs facilitate human agency through four main processes: cognitive (such as analytical thinking), motivational (including beliefs about what can be achieved), affective (like feelings of stress or anxiety), and selection (referring to the choice of a course of action). these processes are assumed to work together in an integrated manner, ultimately guiding human functioning (bandura, 2009). group efficacy acknowledges that group actions are influenced by a broader social context. it involves elements of social cohesion alongside expectations regarding appropriate actions to undertake (sherrieb, norris, & galea, 2010). in agbioforum, 27(1), 2025 | 3 yusa et al — social influence and purchase intentions in food tourism: the interplay of media, store displays, and collectivist ... the literature on group efficacy, social cohesion includes mutual trust and solidarity (browning & cagney, 2002). group efficacy also operates through a paradoxical process, similar to self-efficacy, and has similar consequences (chen & bliese, 2002; gibson, 1999). the confidence that arises from group efficacy motivates its members (fuller, hardin, & davison, 2006). specifically, group efficacy inspires members to pursue more challenging goals, invest greater effort in achieving those goals, and maintain resilience in difficult situations (derue et al., 2010). based on the theory of group efficacy, this study analyzes the moderation of collectivist culture that influences behavior between purchase intention and fear of missing out. social media marketing and purchase intention social media marketing is a method that utilizes one of the social media applications to use social media applications to promote, persuade, and build customer awareness regarding the presence of selected products or services to obtain details of targets and expectations in the economic and social fields (salvation & sorooshian, 2018). social media marketing is the use of social media technology, channels, and software to create, communicate, deliver, and exchange offers that have value for organizational stakeholders (yadav & rahman, 2017). social media marketing activities significantly influence purchase intentions among consumers, particularly for indonesian consumers (aji, nadhila, & sanny, 2020). social media marketing makes a significant contribution to increasing the purchase intention of restaurant social media followers, promoting positive ewom, and increasing the wpp of restaurant social media followers for restaurant products and services (bushara et al., 2023). social media marketing affects purchase intention. therefore, the first hypothesis of this study is: h1: social media marketing has a significant effect on purchase intention. offline store display and purchase intention display refers to the effort of arranging goods in a way that draws the attention of buyers, encouraging them to explore and make purchases. research (iswati & maharani, 2019) indicates that products showcased in the windows of offline stores can significantly attract consumer interest.. offline retailers place a strong emphasis on the physical aspect of their store displays, as these can be directly seen and experienced by every customer who visits. the design of both the store's exterior and interior should create a positive impression on consumers, contributing to a sense of comfort while shopping and facilitating the easy identification and finding of products. research (dixit & singh, 2018) found that display cases, fixtures, signage, mannequins, colors, and lighting significantly influence consumer purchasing behavior. another study (mohan & saraswathi, 2024) indicated that store displays have a strong impact on consumers' impulse buying habits, highlighting their role in encouraging product purchases. product displays that are informative and visually appealing can effectively persuade consumers to make a purchase (muhiban & putri, 2022). additionally, research (majeed & rasheed, 2024) emphasized that appealing offline store displays play a crucial role in fostering positive shopping intentions and guiding consumer decisions. research (prassetyo & hanny, 2020) stated that product displays on purchase intentions are not significant. therefore, the first hypothesis of this study is: h2: offline store displays have a significant effect on purchase intentions. social media marketing and fear of missing out social media has emerged as a key tool for international communication in the rapidly changing digital era. research (widjaya, prathivi, & juniarto, 2024) stated that social media marketing has a significant positive relationship and fomo. research (dinh & lee, 2024) stated that exposure to social media influencers (smi) triggers social comparison and fomo, which then influences the acquisition of conspicuous products. this study further identified that exposure to smis reinforces the desire to imitate and stimulates materialistic tendencies, thereby contributing to conspicuous consumption. fear of missing out is a significant issue that can negatively affect professional work outcomes (yildiz durak & seferoğlu, 2020). research (karimkhan & chapa, 2021) indicates that engaging with social media in languages other than english is a strong predictor of fomo. in contrast, consuming english-language social media does not show a significant correlation with fomo. therefore, the third hypothesis of this study is: h3: social media marketing significantly influences fear of missing out. offline store display and fear of missing out offline stores prioritize the physical appearance of their establishments, as this is directly visible and experienced by every customer who visits. both the exterior and interior of the store should create a positive impact on consumers, fostering a sense of comfort while shopping and making it easy to find and identify products. according to bhatti & latif (2014) assumed that display cases, forum displays, floor sales, and store brand names were significantly related to consumer impulse buying behavior. in addition, forum displays were negatively related to consumer impulse buying and display cases; however, floor sales and store brand names were positively related to consumer impulse buying behavior. research (dixit & singh, 2018) found that display cases, fixtures, signage, mannequins, colors, and lighting were significantly related to consumer purchasing behavior. attractive and prominent displays can trigger fomo feelings in consumers. when someone sees a product that is displayed attractively, is limited in time or quantity, or is described as something that is in high demand by others, it can create a sense of curiosity and a desire not to miss out. therefore, the fourth hypothesis of this study is: h4: offline store display has a significant effect on the fear of missing out. agbioforum, 27(1), 2025 | 4 yusa et al — social influence and purchase intentions in food tourism: the interplay of media, store displays, and collectivist ... fear of missing out and purchase intention research (afdilah, hidayah, & lasan, 2020) indicates that the feeling of fear of missing out (fomo) among adolescents positively influences their consumer behavior. this finding is supported by christina, yuniardi, & prabowo (2019) which shows that fomo enhances the purchasing behavior of the teenage generation. however, an alternative study (subagyo & dwiridotjahjono, 2021) suggests that the fear stemming from social conformity does not impact purchasing decisions, indicating that fomo may not consistently affect consumer behavior. research (dinh & lee, 2022) showed that influencer imitation has a significant effect on social comparison, materialism, and fomo, all of which have an impact on the desire to buy products supported by social media influencers. the results of this analysis emphasize the important role of fomo in determining the desire to buy supported products. research (good & hyman, 2020; rahmawati & sijabat, 2022; yoga et al., 2022) stated that fomo has an effect on purchase intention. research (radianto & kilay, 2023) failed to prove the influence of fomo on purchase intention. while fomo is frequently linked to negative psychological states, examining it within the context of marketing reveals its positive impact on consumer behavior (alfina, hartini, & mardhiyah, 2023). purchase intention refers to the decisions made by consumers who plan to acquire goods or services they have previously researched online (friedrich, schlauderer, & overhage, 2019). research (septiana, mahrinasari, & bangsawan, 2024) shows a significant positive relationship between fomo and purchase intention (pi). consequently, the fifth hypothesis of this study is: h5: fear of missing out has a significant effect on purchase intention. the mediation role of fear of missing out fear of missing out (fomo) plays a significant role in shaping consumers' intentions to purchase products featured in viral social media content. with the vast amount of content available on social media, it's easy for individuals to be swayed by trends that create a sense of urgency, prompting them to buy products so they don’t feel left out (kurniadi, mulyana, & komaladewi, 2024). the increase in social connectivity among individuals provides opportunities for fomo to manifest. a broader social network can lead to greater awareness of social activities that one misses, establishing a positive correlation between perceived social capital and fomo experiences. conversely, higher social capital may also reduce the likelihood of experiencing fomo. (classen, wood, & davies, 2020). research (saavedra & bautista jr, 2020) has identified fomo as a mediating variable that helps explain the relationship between motivational intentions and consumer behavior. research (septiana et al., 2024) show that the dimensions of smm entertainment, interaction, trends, customization, and e-wom significantly and positively influence fomo. fear of missing out (fomo) is a psychological phenomenon characterized by the fear of missing valuable opportunities (dinh & lee, 2024; good & hyman, 2020; przybylski et al., 2013). n marketing, fomo is often triggered by limited-time offers, product scarcity, or exclusive promotions. this sense of urgency encourages consumers to take immediate action, such as making a purchase, due to their anxiety about potentially missing out on a desired product or opportunity. research (saavedra & bautista jr, 2020) has also shown that fomo can serve as a mediating variable in examining the relationship between motivation, intention, and consumer behavior. store displays are crucial in attracting consumer attention and influencing purchasing decisions. (mohan & saraswathi, 2024). visually appealing displays can ignite interest in products and enhance the overall shopping experience. elements such as product layout, lighting, promotional signage, and the visual presentation of items all contribute significantly to creating a strong first impression. research (dixit & singh, 2018) found that fixtures, display cases, signage, mannequins, colors, and lighting were significantly correlated with consumer behavior when purchasing goods. promotional signage and product information positioned along aisles and store shelves help retailers draw in customers and boost sales, while effective visual merchandising aids in building a positive store image. the sixth and seventh hypotheses of this study are as follows: h6: fomo mediates the relationship between social media marketing and purchase intention. h7: fomo mediates the relationship between offline store displays and purchase intention. the moderating role of collectivist culture collectivism is strongly linked to the fear of missing out (fomo) and can serve as a predictor of this behavior, as it is deeply embedded in cultural norms (karimkhan & chapa, 2021). research indicates that individuals from collectivist cultures tend to engage with online social networks less frequently than those from individualist cultures (ji et al., 2010; marques et al., 2018). in collectivist societies, there is a strong emphasis on values such as group harmony, loyalty, and community concern. people from these cultures often prioritize the interests of the group over their individual needs, which can influence how they experience or respond to fomo. therefore, the eighth hypothesis of this study is: h8: collectivist culture moderates the relationship between fomo and purchase intention. figure 1: purposed model research. social media marketing offline store display fear of missing out purchase intention collection culture h1 h6 h5 h8 h2 h7 h3 h4 agbioforum, 27(1), 2025 | 5 yusa et al — social influence and purchase intentions in food tourism: the interplay of media, store displays, and collectivist ... table 1: the variables measurements. variables function symbols variables names/sources measurements dependent 1 (endogen 1) variable smm social media marketing, adopted the instrument of bushara et al. (2023) entertainment 1. i am interested in the information content communicated on social media about food souvenirs 2. i enjoy using social media to search for information about food souvenirs 3. i enjoy collecting information related to food souvenirs communicated on social media interaction 1. i can easily share information and my opinions about food souvenirs on social media 2. i can easily convey my opinions about food souvenirs to others on social media 3. i have the opportunity to interact two-way through food souvenir social media trendiness 1. social media serves as a platform for sharing the latest information about food souvenirs in indonesia. 2. food souvenir products in indonesia on social media keep up with current trends. 3. the content related to food souvenirs provided on social media offers the most up-todate information. customization 1. i am searching for information about food souvenir products on social media that meets my needs. 2. social media offers engaging information about food souvenir products that aligns with my interests. 3. i am utilizing social media to access information services related to food souvenir products that cater to my needs. ewom 1. i will share positive comments about food souvenir products on social media. 2. i will recommend using food souvenir products on social media. 3. i will suggest food souvenir products to friends on social media. dependent 2 (endogen 2) variable dto offline store display, adopted the instrument of mohan & saraswathi (2024) 1. the food souvenir shops feature interior designs that incorporate many eye-catching accessories. 2. the creative flooring and the use of various accessories capture my attention and encourage me to purchase food souvenirs. 3. the arrangement of accessories in the shop's interior design enhances the overall appeal, making me feel compelled to buy food souvenirs on impulse. 4. the presentation of food souvenir products draws my interest. 5. promotional offers clearly visible at the entrance of the food souvenir shop often catch my eye. 6. the attractive displays in food souvenir shops frequently lead me to make unplanned purchases. 7. the way food souvenir products are presented often prompts me to buy items without giving them much thought. 8. food souvenir shops are characterized by their appealing colors and well-structured interior designs. mediator variable fomo fear of missing out, adopted the instrument of good & hyman (2020) 1. i fear i will regret not purchasing food souvenir products. 2. i am concerned about losing food souvenir products. 3. i worry that others will obtain more useful items by buying and using food souvenir products. 4. i am anxious that others will have more fun with food souvenir products. 5. i will feel left out of the trend if i do not have food souvenir products. 6. i will regret not trying the food souvenir products. 7. i will feel anxious about not buying food souvenir products. 8. i will feel annoyed for missing the opportunity to purchase food souvenir products. moderating variable bk collectivism culture, adopted the instrument of majeed & rasheed (2024) 1. the choice to purchase food souvenirs is primarily influenced by group decisions rather than individual ones. 2. i prefer to select food souvenirs based on group decisions. 3. i believe that group decisions lead to higher quality choices than those made individually when it comes to selecting food souvenirs. 4. if i believe that the group's decision on purchasing food souvenirs is not appropriate, i will decline to support it. independent (exogen) variable nb purchase intention, adopted the instrument of dea & albari (2023) 1. i am eager to learn more about food souvenir products before making a purchase. 2. i prefer buying food souvenirs that have practical and easy-to-carry packaging. 3. i will recommend food souvenirs to others. 4. i purchase food souvenirs because of the brand image associated with them. 5. i prefer to buy food souvenirs from well-known brands, even when there are other options available. 6. i will seek additional information about food souvenir products before i make a purchase. agbioforum, 27(1), 2025 | 6 yusa et al — social influence and purchase intentions in food tourism: the interplay of media, store displays, and collectivist ... research method this study employs a quantitative design, utilizing a questionnaire completed by domestic tourists and distributed from april to december 2024. the sampling method used is purposive sampling, as the specific characteristics of the population could not be clearly identified. a total of 420 domestic tourists, who traveled in groups (family, friends, or community groups), were surveyed across 20 provinces in indonesia known for their food souvenir shops. the participants were chosen from those who are familiar with regional food souvenirs typical of indonesia and have interacted with social media platforms that sell these items, specifically facebook, instagram, and tiktok. the data was collected through online google forms. the questionnaire consisted of three sections: 1) general information to confirm the eligibility of respondents, 2) questions related to the study variables, and 3) profiles of the respondents. to address any incomplete responses, the author also conducted interviews with some respondents for clarification. finally, the collected data was organized and analyzed using the excel application. the questionnaire utilized a 5-point likert scale to ensure valid and reliable data collection. the items were adapted from established measurements in previous studies, and each measure was consistent with its defined variable. all indicators met the validity criteria, indicated by a standardized loading factor (slf) of 0.50 or higher. convergent validity was confirmed using the average variance extracted (ave) criterion, which exceeded 0.5, and test reliability was established with a composite reliability (cr) score above 0.7. a total of 420 usable responses were analyzed using structural equation modeling (sem) based on covariance, employing the lisrel8.80 statistical program with a two-step approach: measurement fit model and structural model. sem is particularly suited for complex research models or multiequation analyses, as it allows for the examination of relationships among independent variables, dependent variables, and moderating variables (coudounaris & sthapit, 2017), although it requires a larger sample size. (cai et al., 2015). a sobel test was conducted to investigate the mediating role of fomo on the influence of social media marketing and offline store displays on purchase intention, as well as the moderating role of collectivist culture on the relationship between fomo and purchase intention. a variable is considered a mediator if it can influence an independent variable's effect on a dependent variable. mediation occurs under four conditions: first, the independent variable must significantly affect the mediator; second, the independent variable must significantly affect the dependent variable without the mediator; third, the mediator must have a significant unique effect on the dependent variable; and fourth, the independent effect on the dependent variable must decrease after adding the mediator to the model. these criteria help determine whether mediation exists (preacher & hayes, 2008). result respondents’ characteristics the study reviewed the respondents' profiles based on their region of origin, gender, generation, monthly expenditure, education, and occupation, as detailed in tables 2 and 3. table 2: respondent profile based on province area. no province total number of respondents persentase total respondents 1 aceh 5 1.2% 2 sumatera utara 15 3.6% 3 sumatera barat 8 1.9% 4 riau 6 1.4% 5 sumatera selatan 6 1.4% 6 bengkulu 2 0.5% 7 lampung 8 1.9% 8 kep. bangka belitung 1 0.2% 9 kep. riau 1 0,2% 10 dki jakarta 34 8.1% 11 jawa barat 85 20.2% 12 jawa tengah 65 15.5% 13 di yogyakarta 18 4.3% 14 jawa timur 116 27.7% 15 banten 24 5.7% 16 bali 11 2.6% 17 kalimantan timur 4 1% 18 sulawesi tengah 3 0.7% 19 sulawesi tenggara 7 1.7% 20 gorontalo 1 0.2% total 420 100% source: processed data, 2025 . table 2 above indicates that the largest proportion of respondents originated from east java province, accounting for 27.7%. this was followed by west java province at 20.2%, central java at 15.5%, while the lowest representation came from gorontalo province, bangka belitung islands, and riau islands, each contributing only 0.2%. the characteristics of the respondents in this study are described as follows: agbioforum, 27(1), 2025 | 7 yusa et al — social influence and purchase intentions in food tourism: the interplay of media, store displays, and collectivist ... table 3: respondent characteristics. responden characteristics frequency persentase gender male 218 51.9 % female 202 48.1 % total 420 100% generation gen x (lahir 1965-1980) 68 16.2 % millenial (lahir 1981-1996) 160 38.1 % gen z (lahir 1997-2012) 192 45.7 % total 420 100% expenses per month ≤ rp.2.000.000 177 42.1 % rp. 2.000.000 – rp. 4.999.999 118 28.1 % rp. 5.000.000 – rp. 9.999.999 90 21.4 % rp. 10.000.000 – rp. 15.000.000 13 5.2 % ≥ rp. 15.000.000 22 3.1% total 420 100% education senior high school 153 36.4 % diploma 69 16.4 % bachelor degree 131 31.2 % master degree 60 14.3 % doctoral degree 5 1.2 % other 2 0.5 % total 420 100% work asn 52 12.4 % employee 80 19 % self-employed 43 10.2 % bumn 33 7.9 % profesional 6 1.4 % student s1,s2, s3 142 33.8 % student senior high school 42 10 % other 22 5.2 % total 420 100% source: processed data, 2025. table 3 provides an overview of the characteristics of 420 domestic tourists. among the respondents, 218 identified as male (51.9%), while 202 identified as female (48.1%). the largest age group represented was generation z, comprising 192 tourists (45.7%). the majority of respondents had an expenditure of ≤ rp. 2,000,000, with 177 tourists (42.1%) falling into this category. in terms of education, the highest level attained by respondents was high school, which was reported by 153 tourists (36.4%). the most common occupation among respondents was students, accounting for 142 tourists (33.8%). data analysis indicates that domestic tourists typically access the internet for a maximum of 1-3 hours, as reported by 168 tourists (40%). the most frequent activity on social media was scrolling through timelines, mentioned by 257 tourists (61.19%). the results further reveal that domestic tourists often travel with their families, with 271 tourists (64.53%) indicating this preference. when it comes to activities during travel, visiting tourist attractions was the most common, reported by 324 tourists (77.14%). tasting regional specialties was the second most popular activity, with 201 tourists (47.86%), followed by shopping for souvenirs, reported by 187 tourists (44.52%). the souvenirs that tourists most frequently purchase are food souvenirs, which 374 respondents (89.05%) indicated. regarding information sources for buying food souvenirs, the most trusted online source was social media, cited by 234 respondents (55.71%). additionally, when asked for recommendations on purchasing food souvenirs, the majority of tourists (258 respondents or 61.43%) mentioned both social media and friends as their main sources. test results of validity and reliability, and multicollinearity results the results of the validity test in this study used a convergent validity test measured by the average variance extracted (ave) value. the reliability test used the construct reliability value (cr) which is a measure of the reliability and consistency of each indicator on a measured variable. based on the results of the validity test and reliability test in the table above, the standardized loading factor (slf) value on the indicator is> 0.5. the results of the validity test on the variables of social media marketing, offline store displays, fear of missing out, collectivism culture, and purchase intention have values of 0.717-0.808. variables meet the valid requirements if the ave value is≥ 0.5 (hair jr. et al., 2019). based on the results of the validity test, all variables have an ave value ≥ 0.5 so that all variables are declared valid. the results of the reliability test on the variables of social media marketing, offline store displays, fear of missing out, collectivism culture, and purchase intention have values of 0.864– 0.956. variables are said to meet the reliable requirements if they have a cr value ≥ 0.7 (hair jr. et al., 2019). based on the results of the reliability test, all variables have a cr value ≥ 0.7 so all variables are declared reliable. agbioforum, 27(1), 2025 | 8 yusa et al — social influence and purchase intentions in food tourism: the interplay of media, store displays, and collectivist ... table 4: results of the validity test and reliability test. variable indicator loading factor error composite reliabilty (cr) > 0.70 conclusion cr average variance extracted (ave) > 0.50 conclusion ave social media marketing smm1 0.69 0.35 0.956 reliable 0.771 valid smm2 0.70 0.41 smm3 0.74 0.40 smm4 0.82 0.42 smm5 0.77 0.34 smm6 0.81 0.40 smm7 0.72 0.29 smm8 0.74 0.35 smm9 0.73 0.30 smm10 0.75 0.34 smm11 0.69 0.36 smm12 0.72 0.45 smm13 0.74 0.49 smm14 0.77 0.49 smm15 0.76 0.34 offline store display dto1 0.70 0.35 0.921 reliable 0.769 valid dto2 0.75 0.39 dto3 0.71 0.31 dto4 0.72 0.27 dto5 0.73 0.33 dto6 0.77 0.48 dto7 0.67 0.48 dto8 0.79 0.37 fear of missing out fomo1 0.75 0.42 0.927 reliable 0.785 valid fomo2 0.87 0.41 fomo3 0.86 0.35 fomo4 0.92 0.37 fomo5 0.91 0.31 fomo6 0.84 0.42 fomo7 0.84 0.44 fomo8 0.93 0.33 culture collectivism bk1 0.85 0.48 0.883 reliable 0.808 valid bk2 1.02 0.45 bk3 0.94 0.46 bk4 0.80 0.49 purchase intention nb1 0.74 0.41 0.864 reliable 0.717 valid nb2 0.75 0.49 nb3 0.71 0.44 nb4 0.80 0.49 nb5 0.74 0.51 nb6 0.78 0.36 sources: output results by sem lisrel 8.80. normality data, fit model, and descriptive statistics of data responses table 4: fit model results. overall fit result standard conclusion absolute fit measure χ2 730.0861 (0.6735) smaller good fit rmsea 0.0000 ≤ 0,05 good fit gfi 0.9234 ≥ 0,90 good fit incremental fit measure ifi 1.0000 ≥ 0,90 good fit nfi 0.9875 ≥ 0,90 good fit cfi 1.0000 ≥ 0,90 good fit parsimonious fit measure pnfi 0.8579 ≤ 0,90 good fit pgfi 0.7649 ≤ 1,00 good fit sources: output results by sem lisrel 8.80 the assessment of the research data's normality, conducted using the maximum likelihood estimation method on the structural model, involves several requirements. specifically, the data must be normally distributed, free from outliers, and aligned with the principle of no multicollinearity (ghozali, 2013). the results of the model fit analysis indicate that the model satisfies the criteria for a good fit. detailed findings are summarized in table 4. notably, the indicators for each variable or dimension have an average score of around 3 or higher, demonstrating a strong alignment with the hypothesized relationships. as shown in table 5, the variable related to offline store displays received the highest average score, followed by social media marketing, purchase intention, fomo, and the collectivism culture variable. these results emphasize the significant influence of social media marketing, offline store displays, and collectivism culture on consumer behavior and the enhancement of purchase intentions through the fomo mechanism. agbioforum, 27(1), 2025 | 9 yusa et al — social influence and purchase intentions in food tourism: the interplay of media, store displays, and collectivist ... table 5: descriptive statistics of data responses toward variable items. item 1 2 3 4 5 standard deviation mean grand mean social media marketing smm1 14 14 37 226 129 0.910 4.05 4.09 smm2 15 18 40 142 205 1.019 4.20 smm3 15 21 41 208 135 0.971 4.02 smm4 17 22 46 158 177 1.049 4.09 smm5 19 14 42 213 132 0.978 4.01 smm6 16 20 51 163 170 1.028 4.07 smm7 14 11 38 224 133 0.899 4.07 smm8 13 16 29 178 184 0.949 4.20 smm9 15 10 33 218 144 0.910 4.11 smm10 13 14 36 174 183 0.948 4.19 smm11 14 14 33 220 139 0.915 4.09 smm12 15 16 41 174 174 0.985 4.13 smm13 16 28 46 195 135 1.021 3.96 smm14 15 24 51 151 179 1.046 4.08 smm15 17 11 42 196 154 0.964 4.09 offline store display dto1 13 18 25 220 144 0.918 4.10 4.13 dto2 11 21 35 151 202 0.977 4.22 dto3 10 22 31 220 137 0.906 4.08 dto4 9 15 23 171 202 0.888 4.29 dto5 15 12 35 200 158 0.939 4.13 dto6 15 28 28 167 182 1.037 4.13 dto7 15 26 55 220 104 0.968 3.89 dto8 16 16 35 167 186 0.998 4.17 fear of mising out fomo1 11 28 77 177 127 0.991 3.91 3.93 fomo2 11 36 72 131 170 1.076 3.98 fomo3 17 31 75 176 121 1.050 3.84 fomo4 16 35 64 138 167 1.108 3.96 fomo5 17 34 68 165 136 1.078 3.88 fomo6 11 35 62 142 170 1.060 4.01 fomo7 17 34 65 166 138 1.078 3.89 fomo8 15 34 69 140 162 1.094 3.95 culture collectivism bk1 19 51 50 195 105 1.097 3.75 3.84 bk2 25 46 64 120 165 1.224 3.84 bk3 26 43 59 174 118 1.153 3.75 bk4 7 47 53 141 172 1.066 4.01 purchase intention nb1 17 19 51 209 124 0.981 3.96 4.04 nb2 10 37 27 161 185 1.028 4.13 nb3 12 24 47 196 141 0.967 4.02 nb4 14 26 57 140 183 1.056 4.08 nb5 16 29 59 190 126 1.026 3.91 nb6 11 27 39 174 169 0.990 4.10 sources: spss application, 26 version output, 2025 results of hypothesis, effect of mediation, and effect of moderation the results from the sem estimation support seven hypotheses, as indicated by t values greater than 1.96, which are statistically significant at an alpha level of 5%. this is detailed in table 6. the table demonstrates that both social media marketing and offline store displays have a significant positive impact on purchase intention and the fom. table 6: direct effect hypothesis testing. hypothesis path analysis standardized value t-value decision h1 social media marketing → purchase intention 0.1503 2.5084 supported h2 offline store display → purchase intention 0.1963 3.4014 supported h3 social media marketing → fomo 0.1924 4.4094 supported h4 offline store display→ fomo 0.1378 3.2820 supported h5 fomo → purchase intention 0.2977 3.0875 supported sources: output results by sem lisrel 8.80 table 7 fomo plays a mediating role between social media marketing, offline store displays on purchase intention. the results of the mediation effect test of the fear of missing out variable mediating between social media marketing and purchase intention are shown with a positive value of 0.276, this shows that only 27.6% of the total effect is mediated by the mediator variable. the fear of missing out variable mediating between offline store agbioforum, 27(1), 2025 | 10 yusa et al — social influence and purchase intentions in food tourism: the interplay of media, store displays, and collectivist ... displays and purchase intention is shown with a positive value of 0.173, this shows that the mediation effect that occurs is relatively small, which is around 17.3%. in the context of the baron & kenny (1986) framework, this value illustrates a very small mediation effect. table 7: mediation test. model path result ab/ab+c conclusion a b c ab ab+c social media marketing → fomo → purchase intention 0.192 0.298 0.150 0.057 0.208 0.276 h6 partial mediating offline store display → fomo→ purchase intention 0.138 0.298 0.196 0.041 0.237 0.173 h7 partial mediating sources: output results by sem lisrel 8.80. table 8 presents the test results showing how collectivist culture moderates the relationship between the fomo and purchase intention. the positive coefficient of 0.196 indicates that as collectivism increases, the relationship between fomo and purchase intention becomes stronger. this suggests that individuals from collectivist cultures are more likely to be influenced by fomo, which encourages them to intend to make purchases. additionally, the statistical significance value of c.r = 3.051 confirms that this moderating effect is statistically significant. in summary, a higher level of collectivism corresponds to a stronger relationship between fear of missing out and the intention to purchase. table 8: moderating test. hipotesis estimate s. e c. r conclusion h8 culture collectivism* fomo → purchase intention 0.196 0.064 3.051 positif and significant (moderating) sources: output results by sem lisrel 8.80. figure 2: moderation effect collectivism culture to fomo and purchase intention. according to the structural model, there are similarities that can be explained as follows: structural equation fomo = 0.1378*dto + 0.1924*smm, errorval = 0.2893 r2 = 0.7107 purchase intention = 0.2977*fomo + 0.1963*dto + 0.1503*smm + 0.2240*bk + 0.2561*inter, errorval = 0.6010, r2 = 0.3990 the first equation indicates that the fomo has a positive influence of 0.1378 on offline store displays. additionally, fomo has a positive influence of 0.1924 on social media marketing. the second equation reveals that purchase intention has a positive influence of 0.1963 on offline store displays and a positive influence of 0.1503 on social media marketing. furthermore, purchase intention positively influences fomo by 0.2977. lastly, the second equation shows that collectivist culture strengthens the relationship between fomo and purchase intention by 0.2240. agbioforum, 27(1), 2025 | 11 yusa et al — social influence and purchase intentions in food tourism: the interplay of media, store displays, and collectivist ... figure 3: structural model research from lisrel. sources: output results by sem lisrel 8.80 discussion the influence of social media marketing on purchase intention social media marketing significantly influences tourists' intentions to buy food souvenirs. this study's findings align with previous research, which shows that instagram, youtube, and facebook are the most popular social media platforms for travel information. according to the sor theory, social media marketing serves not only as a communication tool but also has the direct power to influence consumer behavior. marketing content on social media proves to be more effective in driving purchase intentions by understanding tourists' preferences and triggering positive emotional responses. with this knowledge, food souvenir shops can adopt these strategies to boost sales and attract more customers to their products. facebook is one of the largest social media marketing platforms and offers features that help food souvenir businesses effectively reach their target audiences. content shared by food souvenir shops on facebook tends to attract tourists, especially when the information is informative, engaging, and relevant to their interests. food becomes particularly appealing when accompanied by details such as product descriptions, the origin of the ingredients, the manufacturing process, and cultural values or unique flavors. visual content, including photos and videos, along with captivating stories or narratives, enhances tourists' interest in exploring the offered products. furthermore, exclusive promotions, customer reviews, and direct interactions with customers through comments or direct messages build trust in the products, motivating more purchases. well-crafted facebook content can create an emotional connection with tourists, making their shopping experience more memorable. instagram is an excellent visual platform for showcasing products attractively and engagingly for visitors (aji et al., 2020; jackie et al., 2022; martinus & anggraini, 2018; priatni, hutriana, & hindarwati, 2019; yani & rojuaniah, 2023). strong visual appeal can be created through photos and videos that highlight souvenir food products with proper lighting, interesting compositions, and appetizing presentations. additionally, instagram features like stories and reels enable businesses to convey messages in a more dynamic and creative manner. this approach helps companies connect more closely with their audiences and provide in-depth introductions to their products. furthermore, this aligns with feedback from respondents who expressed high interest in the information shared about food souvenirs on social media. tiktok's social media marketing platform emphasizes short, interactive, and creative videos. it provides businesses with the opportunity to showcase food souvenirs in a visually engaging manner, highlighting the product's texture, color, and consumption. tiktok is agbioforum, 27(1), 2025 | 12 yusa et al — social influence and purchase intentions in food tourism: the interplay of media, store displays, and collectivist ... known for its strong visual appeal and effective use of music, filters, and creative transitions. travelers who view content showcasing the making of specialty foods or reading direct product reviews from other customers often feel inspired to try these products, which boosts their desire to purchase. the platform features the "for you page" (fyp) algorithm, allowing food souvenir content to reach a larger and more relevant audience, particularly those seeking unique culinary recommendations. additionally, leveraging hashtag challenges and collaborating with content creators can significantly enhance product visibility. social influences, such as frequently appearing food videos on the fyp or receiving numerous positive reviews, can instill greater consumer trust in the product. tiktok also encourages users to leave direct reviews and share their experiences, which increases the authenticity of the product and motivates users to make a purchase. quick interactions through comments or “video duets” on tiktok enable businesses to build emotional connections with their audiences. travelers who feel connected to the story or experience behind a product are more likely to intend to make a purchase. additionally, tiktok harnesses viral content trends, such as limited-time discount promotions and souvenir-themed challenges, which can create a sense of urgency to buy. by creatively combining visual content, audience engagement, and trend-based marketing strategies, tiktok has emerged as an effective platform for influencing travelers' behavior when it comes to purchasing food souvenirs. the influence of offline store displays on purchase intentions the study's results indicate that offline store displays significantly influence the intention to purchase food souvenirs. this finding aligns with previous research conducted by sources (iswati & maharani, 2019; majeed & rasheed, 2024; muhiban & putri, 2022) which also highlighted the essential role of attractive store displays in shaping shopping intentions and guiding consumer decisions. these results are consistent with the stimulusorganism-response (sor) theory, where offline store displays serve as visual stimuli that impact tourists' emotional responses, such as comfort and interest in the product. this positive emotional reaction encourages tourists to make purchases. stores located in tourist attractions not only enhance their appeal but also provide a more enjoyable shopping experience for visitors. this is particularly important for those seeking souvenirs as keepsakes or gifts. supporting this, 43.3% of tourists strongly agreed, and 39.8% agreed that attractive store displays often lead domestic tourists to make unplanned purchases of food souvenirs. the influence of social media marketing on fear of missing out the results of the study show that social media marketing has a major influence in creating fear of missing out on tourists when purchasing food souvenirs. the results of this study are in line with (ciersya et al., 2023; widjaya et al., 2024) stating that the relationship between social media marketing and fomo is significantly positive. this result means that tourists who actively use social media will experience fear of missing out if they miss news that is currently a hot topic on social media while traveling (alutaybi et al., 2020; makri et al., 2020; opsenica kostić, pedović, & stošić, 2022; xi et al., 2022). in the tourism industry, social media stimuli can trigger fomo. for instance, posts featuring enticing food, breathtaking natural landscapes, or unique souvenirs are often accompanied by captions that spark curiosity and a desire to acquire these items. additionally, influencers and travel bloggers showcasing seemingly perfect travel experiences significantly contribute to this feeling of fomo. social media marketing fosters a sense of fomo through engaging visual content and short viral videos. platforms like instagram and tiktok enable gift shops to showcase enticing videos featuring products, such as freshly baked food or authentic cooking processes. when tourists come across these videos, which often receive thousands of likes and positive comments, they feel compelled to try and purchase the products to avoid feeling left out of the latest trend. interactive features such as instagram stories, reels, and tiktok live further amplify feelings of fomo by providing real-time experiences for potential buyers. when gift shops conduct live shopping sessions or limitedtime flash sales, tourists feel a sense of urgency to buy right away before the promotional offers expire. additionally, the polling and q&a features on instagram stories encourage customer participation, leading to higher engagement and an increased urgency to make a purchase. on facebook, marketing strategies that utilize community groups and customer reviews can create a social dynamic that drives fomo. many tourists who participate in travel or culinary groups frequently see recommendations for souvenirs from fellow members. if a souvenir shop receives numerous positive reviews or is mentioned often within the group, tourists will feel a strong urge to purchase the product so they don’t miss out on the experiences shared by others. limited-time and limitedstock promotions are also effective techniques for generating fomo on social media. when a souvenir shop announces a special deal, such as “50% off today only!” or “only 10 boxes left!”, tourists may feel a sense of panic and hasten to buy before the items are sold out. this strategy is commonly used in paid ads on facebook and instagram to attract more customers by creating urgency. the influence of offline store displays on fear of missing out the results of the study indicate that offline store displays significantly influence tourists' feelings of fomo when purchasing food souvenirs. according to the sor theory, store displays serve as stimuli that evoke emotional responses in tourists. aesthetic food souvenir displays, attractive lighting, and signage that creates a sense of urgency such as "limited offer" or "favorite products"— can trigger a desire to own the product immediately. one key element that generates fomo among tourists is product displays highlighting popularity and limited agbioforum, 27(1), 2025 | 13 yusa et al — social influence and purchase intentions in food tourism: the interplay of media, store displays, and collectivist ... availability. products labeled as "best seller," "most wanted," or "almost out of stock" foster a sense of urgency, prompting tourists to make instant purchases before the items are gone. many tourists worry that if they don’t buy now, they will miss the chance to bring home souvenirs considered favorites or typical of the destination. this concern is supported by survey responses, showing that 40.5% of tourists strongly agree, and 33.8% agree that they would feel regret if they do not try the food souvenir products. additionally, the store's lighting and interior design can enhance feelings of fomo. bright lighting and a lively atmosphere create the impression that the store is frequented by many other tourists. when tourists observe others shopping enthusiastically and selecting products, they feel compelled to participate in the buying process to avoid feeling excluded from the collective experience. a vibrant atmosphere is often associated with the credibility and quality of the products, further increasing the urgency to purchase. fomo is often triggered by the testimonials and experiences of other travelers displayed in stores. many shops showcase customer reviews, photos of celebrities who have purchased their products, or even digital screens featuring social media posts from previous buyers. this creates social pressure for travelers to join in on the experience, making them feel like they might miss out if they don’t. additionally, interactions with store staff can heighten this sense of fomo. when staff recommend products by highlighting their popularity—such as saying, “this is the most sought-after souvenir for tourists; it often sells out quickly”—they can evoke a strong emotional urge for travelers to purchase immediately. this approach reinforces the perception that not buying the product would mean missing out on something valuable. the influence fear of missing out on purchase intention the results of the study indicated that the fomo significantly influences purchase intentions. these findings align with previous research (good & hyman, 2020; rahmawati & sijabat, 2022; yoga et al., 2022), which suggests that fomo impacts consumers’ intentions to buy. specifically, the higher the fomo among consumers, the greater their intention to purchase. when respondents see posts from their peers, they develop a desire to learn more about the products, which ultimately enhances their intention to buy. this suggests that even if tourists experience fomo regarding trends or opportunities to purchase specific food souvenirs, these feelings tend to drive them toward making purchasing decisions. the effect of fear of missing out mediating social media marketing on purchase intention the results of the study indicate that the fear of missing out (fomo) mediates the impact of social media marketing on purchase intention. this aligns with previous research (mohanan & shekhar, 2021) which found that fomo mediates the relationship between social media-induced travel addiction and travel behavioral intention. additionally, research (septiana et al., 2024) shows that fomo serves as a significant positive mediator between various dimensions of social media marketing and purchase intention. social media marketing has a strong influence on consumer intent to make a purchase (widjaya et al., 2024). by using engaging content, such as photos and videos showcasing souvenir products, customer testimonials, and discount promotions, companies can capture the attention of potential buyers. however, the influence of social media marketing extends beyond initial engagement. fomo plays a crucial role as a mediator in the relationship between social media marketing and purchase intention. when consumers encounter appealing posts about food souvenirs on social media that resonate with their buying intentions, they may experience a fear of missing out if they do not make a purchase. this feeling of fomo subsequently drives them to increase their intention to buy these food souvenirs. for instance, in the context of purchasing food souvenirs, fomo can motivate tourists to buy local delicacies to avoid feeling left out compared to friends who have visited the area. moreover, fomo can also prompt consumers to purchase limited edition souvenirs or collaborations with popular figures, driven by the fear that these items may sell out. the effect of fear of missing out mediating offline store displays on purchase intentions the results of this study indicate that the fear of missing out (fomo) mediates the relationship between offline store displays and purchase intentions. this means that an attractive offline store display not only directly influences tourists' intentions to buy food souvenirs but can also evoke feelings of fomo, ultimately increasing the likelihood of purchases. tourists drawn to a unique, neat, and aesthetically pleasing store display are more likely to experience anxiety about missing the opportunity to shop at that location. as a result, they may feel compelled to buy food souvenirs before they lose their chance. several studies have highlighted the role of fomo as a mediator of purchase intentions (bläse et al., 2024; dinh, wang, & lee, 2023). this suggests that eye-catching and creative offline store displays are crucial in triggering fomo among tourists. when visiting a food souvenir shop, tourists encounter a variety of food products presented in an attractive manner. effective use of lighting, striking colors, and unique product arrangements can create an inviting and captivating shopping environment. the presence of strong visual elements in offline store displays—such as attractive lighting, organized product layouts, and the use of regional colors and decorations— can enhance the exclusivity and appeal of the store. when tourists observe many people shopping or notice products displayed in limited quantities, they perceive these items as having high value and being scarce. this perception creates a sense of urgency and a fear of missing out on the opportunity to purchase desired souvenirs. the feeling of fear of missing out (fomo) that arises from these offline store displays is often amplified by social cues, such as agbioforum, 27(1), 2025 | 14 yusa et al — social influence and purchase intentions in food tourism: the interplay of media, store displays, and collectivist ... interactions with fellow tourists. when tourists see others buying certain products or discussing their shopping experiences, they may feel compelled to join in to avoid feeling left out. this phenomenon is commonly observed in popular souvenir shops, where tourists influence each other's purchasing decisions. in addition to store design, the involvement of staff in creating a unique shopping experience is crucial in increasing the fomo effect. staff members who actively recommend popular products, offer food samples, or share the stories behind items can make tourists feel that they will miss out on something valuable if they do not make a purchase. collectivist culture moderates the effect of fear of missing out on purchase intention the study's results indicate that collectivist culture influences the relationship between fomo and purchase intentions. this finding aligns with previous research (feng, guo, & hou, 2023; lee, 2017; reza & handayani, 2023). collectivist culture prioritizes group interests over individual ones, meaning that purchasing decisions are often affected by group dynamics, such as those involving family or friends (feng et al., 2023). in the context of tourism, collectivist culture significantly moderates the impact of fomo on tourists' intentions to buy food souvenirs. in more collectivist societies, group harmony and social relationships influence consumer preferences for products and services that align with their identities and social values (sudirjo, muhtadi, & manik, 2023). consequently, when tourists come from a collectivist culture, the fomo they experience is driven not just by personal pressures, but also by stronger social influences. this dynamic increases their likelihood of purchasing food souvenirs as a way to conform to group social norms. this study utilizes the theory of group efficacy to explain that individuals within a group often believe in their collective ability to achieve certain goals together. for instance, when tourists observe their group members actively searching for trendy souvenirs, they experience a heightened conformity effect. this aligns with the concept of group efficacy, as tourists feel more confident in their decision to purchase souvenirs, believing it to be a wise choice influenced by the group's experiences and recommendations. when a group of tourists successfully acquires the souvenirs they desire, their belief in the correctness of their decision is further reinforced, aligning with the social norms of their group. tourists who exhibit high levels of collectivism tend to prioritize the needs and preferences of their group over merely following trends or succumbing to the fear of missing out (fomo). they are more likely to consider whether food souvenirs can be shared and enjoyed with family or friends, rather than just feeling pressured by trends. this illustrates how collectivist values can spur impulsive buying driven by fomo. tourists from collectivist cultures are frequently influenced by the habits of sharing and group recommendations. if one member of a tourist group buys a specific food souvenir and shares their experience, other group members are often motivated to make the same purchase. here, fomo is amplified by collective motivation, as tourists feel compelled to buy in order to maintain their connection with the group and conform to prevailing social norms. a relevant example of the impact of collectivist culture on purchasing food souvenirs is the tradition of joint donations (sum-suman), where group members buy food souvenirs to be shared and enjoyed together. for instance, if a group of tourists notices that a typical food is going viral and is in high demand among others, they may feel obligated to participate in the trend. in a collectivist context, not purchasing viral food souvenirs can lead to feelings of fomo, not only in personal experiences but also in social interactions within their group. when tourists from collectivist cultures observe their group members buying trending souvenirs, they are likely to be motivated to follow suit, even if they had not initially planned to buy anything. this reaction stems from social pressure and the desire to maintain group harmony, compelling them to conform to the actions of others. since tourists prefer not to feel excluded or different from their group, the fomo effect intensifies when some members start buying souvenirs and encourage others to join them. collectivist cultures place a strong emphasis on the values of sharing and togetherness. this encourages tourists from these cultures to purchase souvenirs, particularly in larger quantities, so they can share them with others. tourists often choose popular food souvenirs as a way of expressing solidarity and personal enjoyment. those from collectivist backgrounds are more likely to buy food souvenirs because they believe their travel experiences are more fulfilling when they can share these treats with family or colleagues back home. in such cultures, the practice of requesting food souvenirs is also common. if one person buys a popular food item, others may feel compelled to ask for help in obtaining the same product. this scenario heightens the fear of missing out (fomo) effect, as tourists who were initially unsure may ultimately decide to make a purchase to avoid being the only ones without that souvenir. tourists might even be willing to stand in long lines or hunt in various stores to find these sought-after food items. theoretical, managerial and policy contributions this study offers a significant contribution to consumer behavior literature by examining collectivist culture as a moderating variable in the relationship between fomo and tourists' intention to purchase food souvenirs. traditionally, fomo has been analyzed as a direct influencer of consumer behavior without considering the impact of cultural values. by incorporating collectivism as a moderating factor, this research demonstrates that the influence of fomo on purchase intention can vary based on the degree to which individuals embrace collective values, such as togetherness, social attachment, and concern for their group. this study enriches our theoretical understanding of how psychological and cultural factors interact to shape consumer behavior and expands the application of consumer behavior models within the agbioforum, 27(1), 2025 | 15 yusa et al — social influence and purchase intentions in food tourism: the interplay of media, store displays, and collectivist ... context of tourism and varying cultural backgrounds. from a practical standpoint, the findings offer valuable insights for players in the souvenir industry, particularly in crafting marketing strategies that are sensitive to tourists' cultural characteristics. for those from collectivist cultural backgrounds, fomo tends to be stronger due to a social inclination to partake in experiences deemed significant by their group. consequently, souvenir shop owners and destination marketers can implement strategies that highlight this social dimension, such as promoting products as "family favorites," "commonly shared among friends," or "must-buys to keep up with souvenir trends." this approach can be more effective in driving purchase intentions among consumers with high levels of collectivism, as it aligns personal experiences with social expectations. by understanding the interplay between these psychological and cultural elements, businesses can create marketing communications that are more personalized and relevant to their visitor profiles. conclusions, limitations, and future research social media marketing and offline store displays have a significant relationship with the fomo and purchase intention. marketing strategies implemented through social media can heighten tourists' interest in food souvenirs and encourage them to make purchases while traveling. additionally, an attractive store display considering factors like product layout, lighting, decoration, and other visual elements can further increase tourists' willingness to buy food souvenirs. statistically, fomo has a partial mediating role between social media marketing and purchase intention. this suggests that tourists may feel pressured to buy food souvenirs immediately simply because the product is viral or trending on social media. similarly, fomo also has a partial mediation effect between offline store displays and purchase intention. while offline displays can influence tourists' buying decisions, this impact occurs through the fomo mechanism. the influence of collectivist culture strengthens the effect of fomo on purchase intention. a collectivist environment encourages individuals to follow trends or group behavior to avoid feelings of isolation. this study has some limitations, as it focuses on a sample drawn from sub-sectors of the creative industry, specifically in the culinary field. furthermore, the research model, which integrates sor theory and group efficacy, may not encompass all the factors that affect tourists' purchase intentions. other aspects, such as tourist motivation, travel experiences, or situational factors, may also significantly influence food souvenir purchasing decisions. future researchers should consider additional variables that might affect tourists' purchase intentions, such as travel motivation, culinary experiences, or destination images. they could also explore how technology, including social media, mobile applications, and ecommerce, impacts tourists' behavior in buying food souvenirs. incorporating these variables could provide a more comprehensive view of the factors influencing food souvenir purchases. moreover, further research could be conducted in different cultural contexts to determine if the findings of this study can be generalized. cross-cultural comparisons can offer valuable insights into how cultural values affect tourists' purchasing 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