Realizing Business Model Innovation in Social Entrepreneurship through Sustainable Agriculture

Abstract

Business model innovation (BMI) is often marginalized when making decisions in social entrepreneurship. For this study, the value chain is emphasized to illustrate the needs in modern agriculture where fertigation activities with appropriate technology are the highlighted solutions. In challenging urban life, fertigation can be one of the options for self-reliance. Therefore, the objective of this study is to explore the BMI framework based on the Resource Based Value (RBV) theory to pave the way for unemployed graduates to venture into sustainable agriculture which itself is a guarantee of daily food sources. A total of 103 survey data were successfully collected from respondents in Melaka City through an online platform. Structural Equation Modeling (SEM) analysis has examined the relationship between the complex variables studied with new insights. Results from SPSS and AMOS confirmed that the business model innovation hypothesis is statistically significant and shows good model fit. In answering the research questions, the critical ratio index was considered. The standard return of the mean square residual and the root mean square error of the estimated results were found to be very good, thus further strengthening the competitiveness of the BMI framework for the unemployed group. CFA and regression analysis were used to validate the framework. In conclusion, the sustainable agriculture framework is seen to support the robustness of the research constructs. Agriculture in urban communities presents unique challenges as it is very difficult to predict. With support from government and other agencies, fertigation activities can be promoted as social entrepreneurship to encourage unemployed graduates to become self-sufficient with high motivation to work and low operating costs.