Realizing Business Model Innovation in Social Entrepreneurship through Sustainable Agriculture

Business model innovation (BMI) is often marginalized when making decisions in social entrepreneurship. For this study, the value chain is emphasized to illustrate the needs in modern agriculture where fertigation activities with appropriate technology are the highlighted solutions. In challenging urban life, fertigation can be one of the options for self-reliance. Therefore, the objective of this study is to explore the BMI framework based on the Resource Based Value (RBV) theory to pave the way for unemployed graduates to venture into sustainable agriculture which itself is a guarantee of daily food sources. A total of 103 survey data were successfully collected from respondents in Melaka City through an online platform. Structural Equation Modeling (SEM) analysis has examined the relationship between the complex variables studied with new insights. Results from SPSS and AMOS confirmed that the business model innovation hypothesis is statistically significant and shows good model fit. In answering the research questions, the critical ratio index was considered. The standard return of the mean square residual and the root mean square error of the estimated results were found to be very good, thus further strengthening the competitiveness of the BMI framework for the unemployed group. CFA and regression analysis were used to validate the framework. In conclusion, the sustainable agriculture framework is seen to support the robustness of the research constructs. Agriculture in urban communities presents unique challenges as it is very difficult to predict. With support from government and other agencies, fertigation activities can be promoted as social entrepreneurship to encourage unemployed graduates to become self-sufficient with high motivation to work and low operating costs.

Business Model Innovation, Fertigation, Appropriate Technology

1. Alamgir, M., Uddin, M. N., Hasan, M. M., Wang, X., Shiru, M. S., & Shahid, S. (2023). Prioritization of sectoral adaptation strategies and practices: A case study for Bangladesh. Environmental Development, 45, 100813. [Google Scholar] [Crossref]

2. Andreini, D., Bettinelli, C., Foss, N. J., & Mismetti, M. (2022). Business model innovation: a review of the process-based literature. Journal of Management and Governance, 26(4), 1089-1121. [Google Scholar] [Crossref]

3. Barney, J. B. (2001). Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. Journal of management, 27(6), 643-650. [Google Scholar] [Crossref]

4. Berita Harian. https://www.bharian.com.my/ [Google Scholar] [Crossref]

5. Budiantoro, R. A., Rachman, M. A., Tsani, L. I., Millatina, A. N., & Fatimatuzzahro, F. (2024). Is the Merger Effective for Indonesian Islamic Banks?. Share: Jurnal Ekonomi Dan Keuangan Islam, 13(2), 636-663. [Google Scholar] [Crossref]

6. Camilleri, M. A., Troise, C., Strazzullo, S., & Bresciani, S. (2023). Creating shared value through open innovation approaches: Opportunities and challenges for corporate sustainability. Business Strategy and the Environment, 32(7), 4485-4502. [Google Scholar] [Crossref]

7. Cheng, C., & Wang, L. (2022). How companies configure digital innovation attributes for business model innovation? A configurational view. Technovation, 112, 102398. [Google Scholar] [Crossref]

8. Delbaz, R., Ebrahimian, H., Abbasi, F., Ghameshlou, A. N., Liaghat, A., & Ranazadeh, D. (2023). A global meta-analysis on surface and drip fertigation for annual crops under different fertilization levels. Agricultural Water Management, 289, 108504. [Google Scholar] [Crossref]

9. Department of Statistic Malaysia, DOSM. https://www.dosm.gov.my/ [Google Scholar] [Crossref]

10. Desiana, P. M., Ma’arif, M. S., Puspitawati, H., Rachmawati, R., Prijadi, R., & Najib, M. (2022). Strategy for Sustainability of Social Enterprise in Indonesia: A Structural Equation Modeling Approach. Sustainability, 14(3), 1383. [Google Scholar] [Crossref]

11. Dowling, E. (2022). The care crisis: What caused it and how can we end it?. Verso Books. [Google Scholar] [Crossref]

12. Engeström, Y., & Sannino, A. (2021). From mediated actions to heterogenous coalitions: four generations of activity-theoretical studies of work and learning. Mind, Culture, and Activity, 28(1), 4-23. [Google Scholar] [Crossref]

13. Fakoussa, R., O'Leary, S., & Salem, S. (2020). An exploratory study on social entrepreneurship in Egypt. Journal of Islamic Accounting and Business Research. [Google Scholar] [Crossref]

14. François, K. K., & Goi, H. C. (2023). Business model for scaling social impact towards sustainability by social entrepreneurs. Sustainability, 15(18), 14027. [Google Scholar] [Crossref]

15. Giudici, A., Combs, J. G., Cannatelli, B. L., & Smith, B. R. (2020). Successful scaling in social franchising: The case of Impact Hub. Entrepreneurship Theory and Practice, 44(2), 288-314. [Google Scholar] [Crossref]

16. Hafeez, A., Husain, M. A., Singh, S. P., Chauhan, A., Khan, M. T., Kumar, N., ... & Soni, S. K. (2023). Implementation of drone technology for farm monitoring & pesticide spraying: A review. Information processing in Agriculture, 10(2), 192-203. [Google Scholar] [Crossref]

17. Hair Jr, J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107-123. [Google Scholar] [Crossref]

18. Hasan, M., Jannah, M., Supatminingsih, T., Ahmad, M. I. S., Sangkala, M., Najib, M., & Elpisah. (2024). Understanding the role of financial literacy, entrepreneurial literacy, and digital economic literacy on entrepreneurial creativity and MSMEs success: a knowledge-based view perspective. Cogent Business & Management, 11(1), 2433708. [Google Scholar] [Crossref]

19. Iskandar, Y., Joeliaty, J., Kaltum, U., & Hilmiana, H. (2022). Systematic review of the barriers to social enterprise performance using an institutional framework. Cogent Business & Management, 9(1), 2124592. [Google Scholar] [Crossref]

20. Kline, T. (2005). Psychological testing: A practical approach to design and evaluation. Sage. [Google Scholar] [Crossref]

21. Kline, R. B. (2015). The mediation myth. Basic and Applied Social Psychology, 37(4), 202-213. [Google Scholar] [Crossref]

22. Kullak, F. S., Fehrer, J. A., Baker, J. J., Woratschek, H., & Sam-Cobbah, J. (2022). Shaping market systems for social change in emerging economies. Industrial Marketing Management, 100, 19-35. [Google Scholar] [Crossref]

23. Lashitew, A. A., van Tulder, R., & Muche, L. (2022). Social value creation in institutional voids: a business model perspective. Business & Society, 61(8), 1992-2037. [Google Scholar] [Crossref]

24. Logue, D., Edwards, M., & McAllister, G. (2025) Hybridity in Non‐profits: Innovating for Social Value Creation. Journal of Management Studies. [Google Scholar] [Crossref]

25. Mainardis, M., Cecconet, D., Moretti, A., Callegari, A., Goi, D., Freguia, S., & Capodaglio, A. G. (2022). Wastewater fertigation in agriculture: Issues and opportunities for improved water management and circular economy. Environmental Pollution, 296, 118755. [Google Scholar] [Crossref]

26. Malak, M. A., Prema, S. F., Sajib, A. M., & Hossain, N. J. (2022). Livelihood of independent waste pickers (Tokai) at Dhaka City in Bangladesh: Does it incidental choice of them. Indonesian Journal of Geography, 54(1), 92-104. [Google Scholar] [Crossref]

27. Mikkonen, R. (2022). Technological innovations and business model innovations: An empirical case study. [Google Scholar] [Crossref]

28. Misra, N. N., Dixit, Y., Al-Mallahi, A., Bhullar, M. S., Upadhyay, R., & Martynenko, A. (2020). IoT, big data and artificial intelligence in agriculture and food industry. IEEE Internet of Things Journal. [Google Scholar] [Crossref]

29. Mittal, P., & Bansal, R. (2024). Social Entrepreneurship and Sustainable Models: Students as Catalysts for Change. In Community Engagement for Sustainable Practices in Higher Education: From Awareness to Action (pp. 225-244). Cham: Springer Nature Switzerland. [Google Scholar] [Crossref]

30. Mol, M. J., & Lee, S. H. (2024). What produces corporate social irresponsibility in offshore outsourcing? The effects of interorganizational relationship governance and institutional distance. Journal of International Business Studies, 55(5), 577-592. [Google Scholar] [Crossref]

31. Mughal, N., Arif, A., Jain, V., Chupradit, S., Shabbir, M. S., Ramos-Meza, C. S., & Zhanbayev, R. (2022). The role of technological innovation in environmental pollution, energy consumption and sustainable economic growth: Evidence from South Asian economies. Energy Strategy Reviews, 39, 100745. [Google Scholar] [Crossref]

32. Nchanji, E. B., & Nchanji, Y. K. (2022). Urban farmers coping strategies in the wake of urbanization and changing market in Tamale, Northern Ghana. Land Use Policy, 121, 106312. [Google Scholar] [Crossref]

33. Nwanojuo, M. A., Anumudu, C. K., & Onyeaka, H. (2025). Impact of controlled environment agriculture (CEA) in Nigeria, a review of the future of farming in Africa. Agriculture, 15(2), 117. [Google Scholar] [Crossref]

34. Obaideen, K., Yousef, B. A., AlMallahi, M. N., Tan, Y. C., Mahmoud, M., Jaber, H., & Ramadan, M. (2022). An overview of smart irrigation systems using IoT. Energy Nexus, 100124. [Google Scholar] [Crossref]

35. Olasky, M. (2022). The tragedy of American compassion. Simon and Schuster. [Google Scholar] [Crossref]

36. Omowole, B. M., Olufemi-Phillips, A. Q., Ofodile, O. C., Eyo-Udo, N. L., & Ewim, S. E. (2024). The role of SMEs in promoting urban economic development: A review of emerging economy strategies. Journal Name Unspecified. [Google Scholar] [Crossref]

37. Parkes, M. G., Azevedo, D. L., Domingos, T., & Teixeira, R. F. (2022). Narratives and benefits of agricultural technology in urban buildings: A review. Atmosphere, 13(8), 1250. [Google Scholar] [Crossref]

38. Pibars, S. K., Gaballah, M. S., Mansour, H. A., & Khalil, S. E. (2022). Management of fertigation and its effects on irrigation systems performance and crop yield. International journal of health sciences, 6(S2), 1634-1659. [Google Scholar] [Crossref]

39. Ragaveena, S., Shirly Edward, A., & Surendran, U. (2021). Smart controlled environment agriculture methods: A holistic review. Reviews in Environmental Science and Bio/Technology, 20(4), 887-913. [Google Scholar] [Crossref]

40. Ramadan, M., Bou Zakhem, N., Baydoun, H., Daouk, A., Youssef, S., El Fawal, A., ... & Ashaal, A. (2023). Toward digital transformation and business model innovation: The nexus between leadership, organizational agility, and knowledge transfer. Administrative Sciences, 13(8), 185. [Google Scholar] [Crossref]

41. Rezky, M. I., & Rasto, R. (2024). Social entrepreneurship in sustainable development: Strengthening the environmental perspective. J. Environ. Sci. Sustain. Dev, 7, 559-577. [Google Scholar] [Crossref]

42. Ridwan Maksum, I., Yayuk Sri Rahayu, A., & Kusumawardhani, D. (2020). A social enterprise approach to empowering micro, small and medium enterprises (SMEs) in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 6(3), 50. [Google Scholar] [Crossref]

43. Robertson, J. M., Gibson, G., Greasley-Adams, C., McCall, V., Gibson, J., Mason-Duff, J., & Pengelly, R. (2022). ‘It gives you a reason to be in this world’: The interdependence of communities, environments and social justice for quality of life in older people. Ageing & Society, 42(3), 539-563. [Google Scholar] [Crossref]

44. Sannikova, A., Vevere, V., & Titko, J. (2023). Competences necessary for a social entrepreneur: a case study of Latvia. Business: Theory and Practice, 24(2), 604-612. [Google Scholar] [Crossref]

45. Shokati Amghani, M., Mojtahedi, M., & Savari, M. (2023). An economic effect assessment of extension services of agricultural extension model sites for the irrigated wheat production in Iran. Scientific Reports, 13(1), 16947. [Google Scholar] [Crossref]

46. Singh, C., Khilari, S. H., & Nair, A. N. (2022). Farming-as-a-service (FAAS) for a sustainable agricultural ecosystem in India: design of an innovative farm management system 4.0. In Digital Transformation and Internationalization Strategies in Organizations (pp. 85-123). IGI Global. [Google Scholar] [Crossref]

47. Suriyankietkaew, S., Krittayaruangroj, K., & Iamsawan, N. (2022). Sustainable Leadership practices and competencies of SMEs for sustainability and resilience: A community-based social enterprise study. Sustainability, 14(10), 5762. [Google Scholar] [Crossref]

48. Yuan, G. N., Marquez, G. P. B., Deng, H., Iu, A., Fabella, M., Salonga, R. B., ... & Cartagena, J. A. (2022). A review on urban agriculture: technology, socio-economy, and policy. Heliyon, 8(11). [Google Scholar] [Crossref]

49. Yusuf, M. S. A., Mat, H., Siaw, S. Y., & Abu, T. H. S. A. T. (2024). Level of perception on fertigation technology among Indigenous people in Perak, Malaysia. Journal of Tropical Resources and Sustainable Science (JTRSS), 12(2), 91-102.Author, F.: Article title. Journal 2(5), 99–110 (2016). [Google Scholar] [Crossref]

• Assessment of the Role of Artificial Intelligence in Repositioning TVET for Economic Development in Nigeria
• Teachers’ Use of Assure Model Instructional Design on Learners’ Problem Solving Efficacy in Secondary Schools in Bungoma County, Kenya
• “E-Booksan Ang Kaalaman”: Development, Validation, and Utilization of Electronic Book in Academic Performance of Grade 9 Students in Social Studies
• Analyzing EFL University Students’ Academic Speaking Skills Through Self-Recorded Video Presentation
• Major Findings of The Study on Total Quality Management in Teachers’ Education Institutions (TEIs) In Assam – An Evaluative Study