Driving Innovation on the Farm: How Integrative Leadership and Absorptive Capacity Translate Social Network Site Use into Performance in the Indonesian Dairy Sector

Abstract

Social Network sites (SNS), Integrative Leadership (IL), and Absorptive Capacity (AC) remain unaddressed in the literature on Innovative Performance (IP), particularly in the livestock sector for smallholder dairy cattle indeveloping nations. This study aimed to fill a gap in the literature by examining the role of IL and AC in mediating SNS on IP. This research employed cross-sectional data to examine a sample of 370 dairy farmers located in East Java who have implemented social, mobile, analytics, cloud, and Internet of Things technologies. In addition, the data underwent analysis using the Structural Equation Model Partial Least Square software smartPLS 3.0. This research indicated that IL mediates between SNS and IP completely; however, AC can only partially mediate on it. The findings indicated that in order to enhance innovation performance through social networks, farmers who are business owners should prioritise aspects such as authority and delegating, cultivating ties with external partners, and making modifications to their business models. Furthermore, farmers should absorb, transform, and utilise knowledge. There should be a policy capable of resolving the issue of intangible assets in order to assist farmers in adopting a new business orientation and appropriately transforming. Consequently, subsistence farmers in developing nations adapt to technological change to overcome economic uncertainty. The implications of this study could assist stakeholders in formulating policies to enhance smallholder farmers’ intangible assets to adapt to technological changes and intense competition, which requires an increase in the quality and quantity of milk for smallholder farm products to be more competitive.