Value Chain Approaches in a Stagnant Industry: The Case of Furniture Production in Jepara, Indonesia

Corinna Clements, Jeffrey Alwang and Ramadhani Achdiawan

Bulletin of Indonesian Economic Studies, 2019, vol. 55, issue 3, 341-365

Abstract: This article assesses impacts of the Jepara Furniture Value Chain (FVC) project, which was intended to address challenges faced by small-scale furniture producers in Jepara, Indonesia. The assessment focuses on the effects of membership in the Jepara Small-Scale Furniture Producers Association (APKJ), a body started as part of the FVC project. Propensity score matching was used to compare differences in outcome variables between association members and matched non-members. A limited, positive impact of APKJ membership was found. Members improved their marketing, allowing them to retain more value than non-members. APKJ members were also more likely to have obtained certificates of timber legality. However, APKJ membership did not significantly affect firm profit and there was little evidence of an industry transformation. The paper also critiques the indiscriminate use of a value chain approach.

Date: 2019
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DOI: 10.1080/00074918.2019.1576855

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