The Business Model Innovation of Agtech Startups

Abstract

Indonesian startup founders show increasing enthusiasm for agriculture and fisheries. However, globally startup success rate is only 5%. On top of that, many Agtech startups fail to create a sustainable business modeland, many of them face the business model challenges. Thus, the researcher wants to study the business model innovation adopted by Agtech startups and capabilities needed to conduct the business model innovation.

This study is conducted in qualitative research by a semi-structured interview method because the study aims to get in-depth information. The research is conducted to 6 Agtech startups, which represent six categories of Agtech startup. The founded data are analyzed with thematic analysis method, word frequency analysis and combined with a review of recent literature to give a deep insight. Addressing this problem will have a practical benefit for Agtech startup in Indonesia in conducting a business model innovation and helping to develop a better understand the business model innovation in Agtech startups.

The research shows that value creation aspect which is people, asset, and partner focus on operation and marketing area. Agtech startup put their focus on their product, people, partner, pricing strategy and their way of getting customers. The business model innovation process heavily relies on people in their organization, partner, and customer. Thus, the capabilities needed for innovating is sensing opportunity from people, partner, and customer, seizing their stakeholder and improve continuously. Future study is recommended to explore deeply about the effect of each the business model innovation on the startup's success with a quantitative study.