Technological Progress in Indonesian Food Processing

Abstract

Technological progress is a critical factor in Society 5.0. Firm technological progress reflects the advancement in firm knowledge. This current study analyzes the key determinants of technological progress in 393 Indonesian food processing companies to assess the readiness to pursue Society 5.0. Adopting the knowledge spillover framework in the endogenous growth theory, this study shows the importance of internal (firm age and firm size) and external factors (export orientation and import intensity) to enhance technological progress. The results from dynamic panel data GMM estimations confirm that firm age, export, and import intensity trigger technological advancement, while firm size does not significantly affect technological progress. These findings suggest the involvement of Indonesian food processing firms in export and import activities in preparing to face Society 5.0.

Technical Inefficiency in Nine Clusters of Indonesian Manufacturing Firms And its Determinants: Stochastic Frontier Analysis

“…First, this study estimates technical efficiency scores for firms in nine industrial clusters of Indonesian manufacturing industry. Complementing prior studies which mainly focus on firms in one particular industry (Setiawan, 2012;Setiawan, 2019b;Suyanto, 2020;Suyanto et al, 2021b), the present study focuses on a more comprehensive scope by taking into account firms in nine industrial clusters. Examining firms in nine industrial clusters is very important due to the varying effects of some pivotal variables on technical efficiency across different industries.…”