Agradaya’s digital transformation journey: Insights from Indonesian agribusiness

Abstract

This study explores the strategic digital transformation of Agradaya, an Indonesian small and medium-sized enterprise (SME) committed to ethical sourcing and social impact in the agricultural sector. Operating in contexts characterized by low productivity and limited market access, Agradaya utilizes digital platforms to connect smallholder farmers directly with consumers, thereby bypassing intermediaries and promoting fair trade practices. The study identifies key strategic drivers of this transformation, including evolving digital market dynamics, technological advancements, supportive government policies, and the firm’s embedded social mission. Using an integrated strategic analysis framework, comprising PESTEL, Porter’s Five Forces, SWOT, VRIO, Value Chain, Competitive Profile Matrix, Grand Strategy Matrix, and Ansoff Matrix, the research highlights Agradaya’s core strengths in farmer empowerment and agri-social branding, while also addressing challenges related to logistics, funding constraints, and impact measurement. The findings emphasize the firm’s dual orientation toward commercial sustainability and social value creation, and underscore the importance of a stewardship-driven organizational culture in fostering resilience and long-term growth. This case provides practical and theoretical insights for social enterprises undertaking digital transformation in emerging agricultural economies.