Eco-Innovation for Sustainability in Traditional Herbal (Jamu) Agroindustry: OGSM-Gap Analysis Based on Employee Perception

Norbertus Citra Irawan(1*), Zandra Dwanita Widodo(2), Kurniawati Darmaningrum(3), Rahmat Catur Haryadi(4), Faustina Yuniastuti(5), Alifah Addin Rakasiwi(6)

(1) Tunas Pembangunan University, Surakarta, Indonesia
(2) Tunas Pembangunan University, Surakarta, Indonesia
(3) Tunas Pembangunan University, Surakarta, Indonesia
(4) Tunas Pembangunan University, Surakarta, Indonesia
(5) Tunas Pembangunan University, Surakarta, Indonesia
(6) Tunas Pembangunan University, Surakarta, Indonesia
(*) Corresponding Author


This research is motivated by the importance of eco-innovation in traditional herbal medicine agroindustry by using local ethnobotanical raw materials to support sustainability and answer increasingly stringent market demands. This research aims to identify gaps between objectives, goals, strategies, and performance measurements related to eco-innovation in the traditional herbal medicine agroindustry based on employee perceptions. The data analysis method used is the OGSM-Gaps model by collecting data through questionnaires distributed to traditional herbal medicine agroindustry employees at the research location, namely Solo Raya. The research population was employees of the traditional herbal medicine agroindustry. The research sample was taken using a simple random sampling method of 100 respondents. The research results highlight the need for improvement in several aspects of the organization. First, organizations need to focus on providing education and training for salespeople or store staff so that they can provide accurate information about traditional herbal medicine products. Second, increasing the promotion and branding of traditional herbal medicine products is needed to broaden public understanding. Furthermore, increasing the competitiveness of traditional herbal medicine products in the market is a priority, with an emphasis on market research and product innovation. Finally, operational efficiency needs to be improved through operational audits, adopting more efficient technology, and involving employees in these improvement efforts. These improvement efforts will support the organization in achieving sustainability goals and sustainable business growth.


agroindustry; eco-innovation; gap analysis; OGSM analysis; sustainability

Full Text:



Ababneh, O. M. A., 2021. How do green HRM practices affect employees’ green behaviors? The role of employee engagement and personality attributes. Journal of Environmental Planning and Management, 64(7), 1204–1226. doi: 10.1080/09640568.2020.1814708
Abdullahi, M. A., Mohamed, Z., Shamsudin, M. N., Sharifuddin, J., Ali, F., 2018. Effects of top leadership culture and strategic sustainability orientation on sustainable development among Malaysian herbal-based SMEs. Business Strategy and Development, 1(2), 128–139. doi: 10.1002/bsd2.17
Ain, N., Vaia, G., DeLone, W. H., Waheed, M., 2019. Two decades of research on business intelligence system adoption, utilization and success – A systematic literature review. Decision Support Systems, 125, 113113. doi: 10.1016/j.dss.2019.113113
Aqmala, D., Ardyan, E., 2019. How does a salesperson improve their performance? The importance role of customer smart response capability. Gadjah Mada International Journal of Business, 21(2), 223. doi: 10.22146/gamaijb.35263
Ariana, L., 2019. Coevolution of technological capabilities and regulation in Indonesian herbal medicine sector. International Journal of Technology, Policy and Management, 19(1), 14. doi: 10.1504/ijtpm.2019.10019324
Astutik, Pretzsch, Ndzifon Kimengsi., 2019. Asian Medicinal Plants’ Production and Utilization Potentials: A Review. Sustainability, 11(19), 5483. doi: 10.3390/su11195483
Barbieri, R., Santos, D. F. L., 2020. Sustainable business models and eco-innovation: A life cycle assessment. Journal of Cleaner Production, 266, 121954. doi: 10.1016/j.jclepro.2020.121954
Bhardwaj, M., Mishra, A., Rivera, K. M., Julyanthry., 2023. Consumer Perception towards Eco-Friendly Products: A Quantitative Study. Journal of Informatics Education and Research, 3(2), 119–123. doi: 10.52783/jier.v3i2.79
Calín-Sánchez, Á., Lipan, L., Cano-Lamadrid, M., Kharaghani, A., Masztalerz, K., Carbonell-Barrachina, Á. A., Figiel, A., 2020. Comparison of Traditional and Novel Drying Techniques and Its Effect on Quality of Fruits, Vegetables and Aromatic Herbs. Foods, 9(9), 1261. doi: 10.3390/foods9091261
Carpino, C., Mora, D., Simone, M. De., 2019. On the use of questionnaire in residential buildings. A review of collected data, methodologies and objectives. Energy and Buildings, 186, 297–318. doi: 10.1016/j.enbuild.2018.12.021
Carpio, D. A., Fernandez, A., Urbano, B., 2019. How to gain image and positioning on social media: Spanish agribusiness firm image and position on social media. Applied Economics, 52(21), 2280–2291. doi: 10.1080/00036846.2019.1688242
Chen, J.-S., Le, T.-T.-Y., Florence, D., 2021. Usability and responsiveness of artificial intelligence chatbot on online customer experience in e-retailing. International Journal of Retail & Distribution Management, 49(11), 1512–1531. doi: 10.1108/ijrdm-08-2020-0312
Chen, Z., Abdullah, N. L., Chen, Z., 2023. Digital Transformation of Retail Industry Under The Influence of Covid-19: A Case Study In China. Journal of Information System and Technology Management, 8(31), 1–19. doi: 10.35631/jistm.831001
Cherifi, A., M’Bassègue, P., Gardoni, M., Houssin, R., Renaud, J., 2019. Eco-innovation and knowledge management: issues and organizational challenges to small and medium enterprises. Artificial Intelligence for Engineering Design, Analysis and Manufacturing, 33(02), 129–137. doi: 10.1017/s0890060419000064
Chin, W., Lee, Y., Amran, M., Fediuk, R., Vatin, N., Kueh, A., Lee, Y., 2022. A Sustainable Reuse of Agro-Industrial Wastes into Green Cement Bricks. Materials, 15(5), 1713. doi: 10.3390/ma15051713
Daru, M., 2021. Partnership expansion between farmers and the herbal medicine industry for community economic development. E3S Web of Conferences, 306, 2006. doi: 10.1051/e3sconf/202130602006
Duong, C. D., 2021. Big Five personality traits and green consumption: bridging the attitude-intention-behavior gap. Asia Pacific Journal of Marketing and Logistics, 34(6), 1123–1144. doi: 10.1108/apjml-04-2021-0276
Dzulfikar, A., Jahroh, S., Ali, M. M., 2022. Business Development Strategy of Instant Ginger Start-Up in The Covid-19 Pandemic. Jurnal Manajemen Dan Agribisnis. doi: 10.17358/jma.19.2.251
El-Dahiyat, F., Rashrash, M., Abuhamdah, S., Farha, R. A., Babar, Z.-U.-D., 2020. Herbal medicines: a cross-sectional study to evaluate the prevalence and predictors of use among Jordanian adults. Journal of Pharmaceutical Policy and Practice, 13(1). doi: 10.1186/s40545-019-0200-3
Etikan, I., Babtope, O., 2019. A basic approach in sampling methodology and sample size calculation. Med Life Clin, 1(2), 1006.
Faqih, A., Elizabeth, R., Azahari, D. H., 2020. The increasing of competitiveness of agroindustry products through institutional empowerment to support the achievement of sustainable agricultural development. 670216917. doi: 10.32479/ijeep.10376
Farquhar, J., Michels, N., Robson, J., 2020. Triangulation in industrial qualitative case study research: Widening the scope. Industrial Marketing Management, 87, 160–170. doi: 10.1016/j.indmarman.2020.02.001
Garai, A., Sarkar, B., 2022. Economically independent reverse logistics of customer-centric closed-loop supply chain for herbal medicines and biofuel. Journal of Cleaner Production, 334, 129977. doi: 10.1016/j.jclepro.2021.129977
Guiné, R. P. F., Florença, S. G., Barroca, M. J., Anjos, O., 2020. The Link between the Consumer and the Innovations in Food Product Development. Foods, 9(9), 1317. doi: 10.3390/foods9091317
Haming, M., Syaiful, A. Z., Putra, A. H. P. K., Murdifin, I., 2019. The Application of SERVQUAL Distribution In Measuring Customer Satisfaction of Retails Company. Journal of Distribution Science, 17(2), 25–31. doi: 10.15722/jds.17.2.201902.25
Hendry, N. A., Hartung, C., Welch, R., 2021. Health education, social media, and tensions of authenticity in the ‘influencer pedagogy’ of health influencer Ashy Bines. Learning, Media and Technology, 47(4), 427–439. doi: 10.1080/17439884.2021.2006691
Herkenrath, C., Conrad, R., Stich, V., 2022. Becoming an Agile Organization: Development of a Morphology for Strategic Agile Management Systems. In Collaborative Networks in Digitalization and Society 5.0 (pp. 423–433). Springer International Publishing. doi: 10.1007/978-3-031-14844-6_34
Herma., 2020. Bursa Hilirisasi Inovasi Herbal Indonesia 2020: Pertemuan Peneliti dan Pelaku Usaha untuk Percepat Pengembangan Herbal Indonesia. Pusat Data Dan Informasi Obat Dan Makanan-BPOM.
Irawan, N., 2023. Peran Penyuluh dalam Mengembangkan Korporasi Pertanian Terpadu Keluarga dan Mempromosikan Keberlanjutan Melalui Pendidikan, Pelatihan, Konsultasi, dan Bimbingan. AGRIEKSTENSIA, 22(1), 14–27. doi: 10.34145/agriekstensia.v22i1.2413
Irawan, N. C., Esthi, R. B., Wijayanti, I. K. E., Widodo, Z. D., Darmaningrum, K., 2023. Unlocking Organic Agroindustry Employee Eco-Innovation: Role of Green Product Knowledge and Green Transformational Leadership. Indonesian Journal of Economics, Social, and Humanities, 5(3), 204–222. doi: 10.31258/ijesh.5.3.204-222
Ismail, A., Razak, R. S. A., Suddin, L. S., Mahmud, A., Kamaralzaman, S., Yusri, G., 2022. The Economic Burden and Determinant Factors of Parents/Caregivers of Children with Cerebral Palsy in Malaysia: A Mixed Methods Study. International Journal of Environmental Research and Public Health, 19(1), 475. doi: 10.3390/ijerph19010475
Jakovljevic, M., Wu, W., Merrick, J., Cerda, A., Varjacic, M., Sugahara, T., 2021. Asian innovation in pharmaceutical and medical device industry – beyond tomorrow. Journal of Medical Economics, 24(sup1), 42–50. doi: 10.1080/13696998.2021.2013675
Jilcha Sileyew, K., 2020. Research Design and Methodology. In Cyberspace (pp. 1–12). IntechOpen. doi: 10.5772/intechopen.85731
Kasri, R. A., Ahsan, A., Widiatmoko, D., Hati, S. R. H., 2021. Intention to consume halal pharmaceutical products: evidence from Indonesia. Journal of Islamic Marketing, 14(3), 735–756. doi: 10.1108/jima-06-2021-0192
Kunonga, E., Whitty, P., Singleton, S. (2010). The applicability of Hoshin Kanri for strategic planning and deployment in the public sector: A case study from NHS North East. Journal of Management & Marketing in Healthcare, 3(1), 87–97.
Li, Y., Song, Y., Zhao, W., Guo, X., Ju, X., Vogel, D., 2019. Exploring the Role of Online Health Community Information in Patients’ Decisions to Switch from Online to Offline Medical Services. International Journal of Medical Informatics, 130, 103951. doi: 10.1016/j.ijmedinf.2019.08.011
Lin, J., Luo, Z., Benitez, J., Luo, X. (Robert), Popovič, A., 2021. Why do organizations leverage social media to create business value? An external factor-centric empirical investigation. Decision Support Systems, 151, 113628. doi: 10.1016/j.dss.2021.113628
Lu, F., Guo, Y., Zhao, B., Jiang, X., Chen, B., Wang, Z., Xiao, Z., 2022. OGSM: A Parallel Implicit Assembly Algorithm and Library for Overlapping Grids. Applied Sciences, 12(15), 7804. doi: 10.3390/app12157804
Mahardhika, D., Nurmahdi, A., 2023. Analysis of Price Perception, Brand Awareness, Delivery Quality on Customer Satisfaction And Repurchase Intention. Dinasti International Journal of Education Management and Social Science, 4(3), 323–334. doi: 10.31933/dijemss.v4i3.1615
Mayasari, N., Sunariya, M. I. T., 2023. The analysis of Covid-19 impact on herbal medicine production in Nguter District, Sukoharjo Regency. 5th International Conference On Innovative Design, Analysis & Development Practices In Aerospace & Automotive Engineering: I-DAD’22. doi: 10.1063/5.0141893
Najib, M., Sumarwan, U., Septiani, S., Waibel, H., Suhartanto, D., Fahma, F., 2022. Individual and Socio-Cultural Factors as Driving Forces of the Purchase Intention for Organic Food by Middle Class Consumers in Indonesia. Journal of International Food & Agribusiness Marketing, 34(3), 320–341. doi: 10.1080/08974438.2021.1900015
Nam, S.-J., 2020. Moderating effects of consumer empowerment on the relationship between involvement in eco-friendly food and eco-friendly food behaviour. International Journal of Consumer Studies, 44(4), 297–305. doi: 10.1111/ijcs.12568
Nguyen, A. T., Parker, L., Brennan, L., Lockrey, S., 2020. A consumer definition of eco-friendly packaging. Journal of Cleaner Production, 252, 119792. doi: 10.1016/j.jclepro.2019.119792
Ofosu-Boateng, I., 2020. Influence of Consumer Sales Promotion on Consumers’ Purchasing Behaviour of the Retailing of Consumer Goods in Tema, Ghana.Journal of Marketing Management (JMM), 8(1). doi: 10.15640/jmm.v8n1a4
Oppong, P. K., 2021. Influence of Brand Credibility, Satisfaction and Quality on Brand Equity in Non-Conventional Health Industry. Journal of Education and Vocational Research, 11(2(V)), 58–67. doi: 10.22610/jevr.v11i2(v).3135
Otto, A. S., Szymanski, D. M., Varadarajan, R., 2019. Customer satisfaction and firm performance: insights from over a quarter century of empirical research. Journal of the Academy of Marketing Science, 48(3), 543–564. doi: 10.1007/s11747-019-00657-7
Parveen, B., Parveen, A., Parveen, R., Ahmad, S., Ahmad, M., Iqbal, M., 2020. Challenges and opportunities for traditional herbal medicine today with special reference to its status in India. Annals of Phytomedicine: An International Journal, 9(2), 97–112. doi: 10.21276/ap.2020.9.2.8
Paryontri, R. A., Mariyati, L. I., Sari, S. M., Widyastuti, N. A., 2022. Herb mocktail product innovation to improve the creative economy in Wilayut Village. Community Empowerment, 7(10), 1659–1664. doi: 10.31603/ce.7010
Permani, R., Sahara, S., Satria, D., Suprehatin, S., Nuryartono, N., 2023. The impacts of food certificate adoption on e-commerce income among small online agri-food sellers. Journal of Agribusiness in Developing and Emerging Economies. doi: 10.1108/jadee-10-2022-0231
Phu, H. T., Thuan, D. T. B., Nguyen, T. H. D., Posadino, A. M., Eid, A. H., Pintus, G., 2020. Herbal Medicine for Slowing Aging and Aging-associated Conditions: Efficacy, Mechanisms and Safety. Current Vascular Pharmacology, 18(4), 369–393. doi: 10.2174/1570161117666190715121939
Quintão, C., Andrade, P., & Almeida, F., 2020. How to Improve the Validity and Reliability of a Case Study Approach? Journal of Interdisciplinary Studies in Education, 9(2), 273–284. doi: 10.32674/jise.v9i2.2026
Rahayu, Y. Y. S., Araki, T., Rosleine, D., 2020. Factors affecting the use of herbal medicines in the universal health coverage system in Indonesia. Journal of Ethnopharmacology, 260, 112974. doi: 10.1016/j.jep.2020.112974
Raus, K., Mortier, E., Eeckloo, K., 2020. Challenges in turning a great idea into great health policy: the case of integrated care. BMC Health Services Research, 20(1). doi: 10.1186/s12913-020-4950-z
Rejeb, H. Ben, Morel-Guimarães, L., Boly, V., Assiélou, N. G., 2008. Measuring innovation best practices: Improvement of an innovation index integrating threshold and synergy effects. Technovation, 28(12), 838–854. doi: 10.1016/j.technovation.2008.08.005
Sadiq, M., Adil, M., Paul, J., 2021. An innovation resistance theory perspective on purchase of eco-friendly cosmetics. Journal of Retailing and Consumer Services, 59, 102369. doi: 10.1016/j.jretconser.2020.102369
Saha, A., Basak, B. B., 2020. Scope of value addition and utilization of residual biomass from medicinal and aromatic plants. Industrial Crops and Products, 145, 111979. doi: 10.1016/j.indcrop.2019.111979
Shen, A. K., Peterson, A., 2019. The pharmacist and pharmacy have evolved to become more than the corner drugstore: a win for vaccinations and public health. Human Vaccines & Immunotherapeutics, 16(5), 1178–1180. doi: 10.1080/21645515.2019.1660119
Shen, B., Cao, Y., Xu, X., 2019. Product line design and quality differentiation for green and non-green products in a supply chain. International Journal of Production Research, 58(1), 148–164. doi: 10.1080/00207543.2019.1656843
Sorokina, M., Steinbeck, C., 2020. Review on natural products databases: where to find data in 2020. Journal of Cheminformatics, 12(1). doi: 10.1186/s13321-020-00424-9
Surya, B., Syafri, S., Sahban, H., Sakti, H. H., 2020. Natural Resource Conservation Based on Community Economic Empowerment: Perspectives on Watershed Management and Slum Settlements in Makassar City, South Sulawesi, Indonesia. Land, 9(4), 104. doi: 10.3390/land9040104
Suswadi, Irawan, N. C., Aulia, N. N., 2022. The nexus between green strategic consensus, innovation, and performance evidence from eco-friendly food agroindustry companies in Indonesia. IOP Conference Series: Earth and Environmental Science, 1108(1), 012033. doi: 10.1088/1755-1315/1108/1/012033
Thakkar, S., Anklam, E., Xu, A., Ulberth, F., Li, J., Li, B., Hugas, M., Sarma, N., Crerar, S., Swift, S., Hakamatsuka, T., Curtui, V., Yan, W., Geng, X., Slikker, W., Tong, W., 2020. Regulatory landscape of dietary supplements and herbal medicines from a global perspective. Regulatory Toxicology and Pharmacology, 114, 104647. doi: 10.1016/j.yrtph.2020.104647
Thompson, L. J., Glewen, K. L., Elmore, R. W., Rees, J., Pokal, S., Hitt, B. D., 2019. Farmers as Researchers: In-depth Interviews to Discern Participant Motivation and Impact. Agronomy Journal, 111(6), 2670–2680. doi: 10.2134/agronj2018.09.0626
Tu, Y., Wu, W., 2021. How does green innovation improve enterprises’ competitive advantage? The role of organizational learning. Sustainable Production and Consumption, 26, 504–516. doi: 10.1016/j.spc.2020.12.031
van Wyk, A. S., Prinsloo, G., 2020. Health, safety and quality concerns of plant-based traditional medicines and herbal remedies. South African Journal of Botany, 133, 54–62. doi: 10.1016/j.sajb.2020.06.031
Vardhan, S., Gupta, P., 2022. Implementation of agribusiness model in a food processing industry to reduce potato losses: a case study. International Journal of Indian Culture and Business Management, 26(1), 68. doi: 10.1504/ijicbm.2022.122840
Vial, G., 2019. Understanding digital transformation: A review and a research agenda. Journal of Strategic Information Systems, 28(2), 118–144. doi: 10.1016/j.jsis.2019.01.003
Wen, H., Zhong, Q., Lee, C.-C., 2022. Digitalization, competition strategy and corporate innovation: Evidence from Chinese manufacturing listed companies. International Review of Financial Analysis, 82, 102166. doi: 10.1016/j.irfa.2022.102166
Yao, D., Hu, H., Harnett, J. E., Ung, C. O. L., 2020. Integrating traditional Chinese medicines into professional community pharmacy practice in China – Key stakeholder perspectives. European Journal of Integrative Medicine, 34, 101063. doi: 10.1016/j.eujim.2020.101063


Article Metrics

Abstract views : 521 | views : 414


  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.