Relationship between Productivity and Export in an Agro-industrial Company in the Coffee Sector in Cajamarca – Peru, 2022

Jhaquelin Mareli Mendoza Castañeda, Saraí Nelly Samán Chingay, Kretel Azucena Alvares Cardenas and Rayzza Elizabeth Vargas Machuca

Universidad Pivada del Norte, Cajamarca, Perú

Academic Editor: Rafael Antonio Figueroa Ortega

Cite this Article as:

Jhaquelin Mareli Mendoza Castañeda, Saraí Nelly Samán Chingay, Kretel Azucena Alvares Cardenas and Rayzza Elizabeth Vargas Machuca (2024)," Relationship between Productivity and Export in an Agro-industrial Company in the Coffee Sector in Cajamarca - Peru, 2022", IBIMA Business Review, Vol. 2024 (2024), Article ID 607090, https://doi.org/10.5171/2024.607090

Copyright © 2024. Jhaquelin Mareli Mendoza Castañeda, Saraí Nelly Samán Chingay, Kretel Azucena Alvares Cardenas and Rayzza Elizabeth Vargas Machuca. Distributed under Creative Commons Attribution 4.0 International CC-BY 4.0

Abstract

The agroindustry in the department of Cajamarca is one of the vitally important economic activities, with the coffee sector being the fastest growing because one of the best coffees is produced, originating the commercialization of this product in national and international markets, generating thousands of jobs, from its cultivation, processing and valorization. Therefore, the objective of this study was to determine the relationship between productivity and export in the INTEGRA COFFEE agroindustry of Jaén, in the department of Cajamarca in 2022, carrying out basic research with a quantitative approach, a cross-sectional experimental design contextualized within the descriptive-correlational type. This study consisted of 162 collaborators, although for convenience a sample of 20 workers was taken. The technique used was the survey and a 52-question questionnaire was used as an instrument with a reliability according to Cronbach’s Alpha of 0.935 and a validation by expert judgment. Obtaining as a result that there is a perfect positive correlation between the productivity and export variables in the INTEGRA COFFEE company, the result was validated by performing the Rho Spearman test obtaining a coefficient of 0.905 and presenting a significance level of less than 0.05, that is, when productivity is properly managed, efficient exports will be received. Finally, we conclude that there is a relationship between the productivity and export variables in the INTEGRA CAFÉ agroindustry of Jaén, in the department of Cajamarca in the year 2022.

Keywords: Productivity, Export, Relationship and Agroindustry

Introduction

Productivity growth is a key driver of improved living standards, but it has been declining since 2000. Even before the crisis, this was partly due to the economic slowdown and poor diffusion of world-leading innovations to other firms (Organisation for Economic Co-operation and Development [OECD], 2015, p. 1).

The growing trend in agro-industrial markets is that both producers and exporters must guarantee the safety of the product from the point of origin to the point of consumption; that is, exporters must make it clear that the characteristics of their products must reflect the requirements of consumers (Ministry of Agrarian Development and Risk [MIDAGRI], 2022, par. 1-2).

For the reasons stated above, Mercado Libre, an international e-commerce platform, demands productivity from its workers, but does not provide them with favorable working conditions. According to Sebastián Manzoni, the company uses temporary contracts to evade responsibilities with its collaborators. It also allowed them to sit for 20 minutes, and to achieve the productivity that the company demanded; they had to jog all night. These working conditions caused people to be fired and hired month after month, due to the lack of commitment that both the company has with its collaborators and the collaborators with it (Radio Gráfica, 2021, paragraph 1,6-7).

In Peru, due to the decline of many agro-exporting companies in 2013 (410 agro-companies) and August 2014 (422 agro-companies), the International Labour Organization (ILO) implemented the Score Evaluation Program, which aims to increase business productivity and improve the working conditions of employees through an alliance between entrepreneurs and employees of agro-industrial companies, in which 12 large companies participate, such as Camposol, Sunshine Export, Sociedad Agrícola Virú, Drokasa and others (Gonzáles, 2015, paragraph 1, 4).

In this regard, in 2019, according to the Global Economics and Business Research Center of the Exporters Association (CIEN-ADEX), a total of 2,727 Peruvian companies, mostly microenterprises, have stopped exporting. This is due to productivity and connectivity issues, as well as uncertainty about Peru’s political outlook in 2020, according to the senior analyst for Policy Development at CIEN-ADEX, Nancy Arrelucé (Global Economics and Business Research Center of the Exporters Association [CIEN-ADEX], as cited by Huamani, paragraph 1,4).

According to the data from the Association of Exporters (ADEX), Cajamarca’s agro-industrial exports in 2021 increased 16% compared to 2019, reaching a historic record of $282 million. However, labor productivity in this sector, defined as GDP per worker, in Cajamarca (S/ 2,531) is much lower than the national average in 2020 (S/ 6,298). This productivity gap has even widened in recent years, with Cajamarca becoming the second lowest agricultural productivity region in the country (Association of Exporters [ADEX], as I cite Regional Competitiveness Index [INCORE], 2022, paragraphs 5-6).

For this reason, it is necessary to take into consideration previous research carried out at an international level:

An investigation presented by Villa (2021) determines the impact of labor productivity on the exports of manufactured goods from Ecuador for the period 1991-2019. The method used is an inferential investigation with a hypothetical evaluation; the research was carried out based on annual statistical data from the Central Bank of Ecuador, the International Labor Organization and the World Bank. The result of this study is that the effect of labor productivity on the exports of finished goods according to the initial least squares estimate and its estimates is very significant and shows signs of a positive effect respectively. Likewise, Paxi (2017) presented an investigation related to this topic to demonstrate the periodicity of rainfall on regional agricultural productivity in Bolivia. The methodology used is a deductive method with a quantitative approach; this study will use statistical data on the agricultural yearbook data of the Ministry of Development, Route and Land, constructing statistical tables and graphs. As a result, it was obtained that the variation in agricultural productivity by regional climate is proportional to the frequency of rainfall in the lowlands of the modern subsector in the alpine climates of the traditional and modern subsectors.

At the national level, Portocarrero (2020) presented a study to determine the relationship that exists between productivity and the export of Hass avocado from Prohass Peru 2020. Using a non-experimental design approach to describe the degree of magnitude of the quantitative approach and cross-reading where there would be no sample and the entire population will be taken, the results will be obtained through a census because there is a license to use the tool that explains the need to collect productivity and export data. The survey is carried out online using a form following the principles of biosecurity. As a result, when performing the acceleration between productivity and the export variable, it can be observed that Spearman’s Rho = 0.589, which is a moderate acceleration; in that sense, it is stated that productivity is significantly related to the export of Hass avocado from Prohass in the period 2020 with a coefficient of 0.0589. In the same sense, Girón (2019) presented a study to determine how competitive factors affect the export potential of FELLES EIRL province of Huaura, 2019. The methodology used is a basic descriptive correlational non-experimental mixed approach. The technique used is the survey and the instrument is a questionnaire. In this study, the sample consisted of 47 collaborators. The results obtained according to the Rho Spearman evaluation are a moderate positive evaluation and a high statistical significance (p = 0.00 < 0.05; r = 0.570) with which it is concluded that the competitive factors have a significant impact on the export potential of the FELLES EIRL company in the province of Huaura in the period 2019.

At the local level, Leyva and Palomino (2022) conducted a study to determine the relationship between the international marketing mix and cocoa exports from Jaén to the United States in 2021. This study uses the basic non-experimental method of correlational and descriptive degree with a cross-sectional design. To collect the necessary information, a census method was used, which includes cocoa producers in the department of Jaén. Likewise, the sampling included 20 cocoa growers from the city of Jaén because of the non-probabilistic snowball and convenience sampling method. The results are based on the Spearman statistical qualification test (Rho = 0.577) with an approximate significance (α = 0.008), so there is sufficient evidence to demonstrate that there is a relationship between international marketing mix and cocoa exports from the department of Jaén to the United States in the period 2021.

This research is based on the theoretical aspects explained below:

The first variable of study is productivity which, according to Carro and Gonzales (2012), implies an improvement of the production process; that is, a positive comparison between the number of resources, raw materials used, and the services produced. Productivity, then, is a measure related to what the system produces (product or inputs), and the resources used to produce it (p. 1). The objective of productivity is to measure the results of the efficient use of resources: the fewer resources are invested to achieve equal or greater benefits, the more efficient (Juez, 2020, sect. 1). Productivity in business organizations is the ability to produce using all the resources necessary to produce a product, be it money, infrastructure or labor. Furthermore, for the first time, the reduction of production time is considered. Following the Sumanth model, there are four dimensions explained in the dynamic cycle of productivity: productivity measurement, productivity evaluation, productivity planning and productivity improvement (Littre, 1883, Sumanth, 1999, Lombana, 2013, p.3).

Export is the second variable under study which, according to Urrosolo et. al (2018) [15], is the supply of a product or service to another country or a third country for commercial purposes (page 2). However, it is not the only way to internationalize, but the most widespread; exports can be classified as direct (sale of products in a country other than the country of origin using own means until the product reaches the final receiver/buyer) and indirect (use representatives to contact customers in the destination markets) (Martínez and Lombona, 2013, p. In this sense, there are many models that try to decipher the causes of international trade, among them the Heckscher-Ohlin Model that combines the issues of comparative advantage and specialization of a country; this means that it emphasizes the decisive aspects of supply, mainly the differences in the allocation of production factors. The Heckscher-Ohlin Model presents four dimensions as the foundation of international trade, which are the factors of production of goods, technology, goods, and demand (Peña, 2016, p. 15-16).

For this study, the research question is:

What is the relationship between productivity and exports in the INTEGRA COFFEE agroindustry of Jaén, in the department of Cajamarca in 2022?

The general objective of this research is:

To determine the relationship between productivity and exports in the INTEGRA COFFEE agroindustry of Jaén, in the department of Cajamarca in 2022.

The researcher’s hypothesis raised for this study is:

Ha: There is a relationship between productivity and exports in the INTEGRA COFFEE agroindustry of Jaén, in the department of Cajamarca in the year 2022.

Ho: There is no relationship between productivity and exports in the INTEGRA COFFEE agroindustry of Jaén, in the department of Cajamarca in 2022.

The research is justified theoretically where the productivity and export variables help to improve the internal environment of the company in terms of technology and human capital, which is an important factor for the success of the company and more. There are many standards, specifications, and certifications that must be met; it is important that the production environment meets the market requirements to survive in the long term. In the same practical way, as in this study on the relationship between productivity and export, a study of the internal environment of Integra Coffee Company will be carried out, to help improve the production and export of coffee to achieve improvements and thereby increase productivity and efficient export in subsequent export shipments. The same occurs with the social issue, as this study will leave a precedent in the agro-industrial society due to the importance of having productive human resources and technology compatible with the needs of the market to achieve better performance and may have greater reach in the international market.

Methodology

The type of research that will be developed is basic or also called pure because it will be driven by creative searching, curiosity, a great joy in discovering new knowledge and, as others have said, the love of wisdom (Nicomedes, 2018, p. 1).

The approach to be used is quantitative in nature, as it provides researchers with feasible and reliable methods and tools to transform research into a source of information for decision making and provide relevant information on specific market behavior (Balcázar et al., 2013, p.).

Considering the approach, the design to be used is not experimental; according to Hernández et al. (2014), it represents a turning point in many quantitative studies (opinion surveys, retrospective surveys and prospective retrospectives, etc.) without intentionally modifying the variables. Similarly, it presents a cross-section that, for Hernández et al. (2014), is an observational and individualized analysis of the measurement of one or more characteristics or diseases (variables) over a period.

The study is contextualized within the descriptive type and is responsible for determining the characteristics of the study population (Guevara et al., 2020, p. 166). For these reasons, the present study is descriptive in nature, since it examines the facts and their main characteristics to ensure an adequate explanation of the productivity and export variables in the study company.

The study’s characteristics are classified as correlational since its purpose is to understand the relationship between productivity and exports. According to Hernández et al. (2014), this type groups relevant variables in prediction models of groups or populations to understand the relationship or degree of measurement that exists between two or more concepts, categories, or variables in a particular example or context (p. 93).

To carry out this research, it was necessary to demonstrate the importance of the population, which, according to Arias et al. (2016), provides a clear, limited, and accessible collection of sample cases and references (p. 202). Considering what has been stated above in this study, the population considered will be finite because we know the exact number of elements that make up this study, which includes 162 producers and collaborators from the different areas of the Integra Coffee company.

If we talk about population, we must also talk about sample, that is, a subset of the population of interest from which data are collected; this sample must be accurately identified and predetermined and be representative of the population (Hernández et al., 2014, p. 173). To determine the sample to be used in this study, a non-probabilistic method was used, which consists of selecting people who match interests like the study, that is, the use of convenience sampling gave us a sample of 20 collaborators who fit the profile of this research.

The method to be used is the Inductive-Deductive method, which, according to Rodríguez and Pérez (2017), includes two opposite processes: induction and deduction. Induction is based on the repetition of real facts and phenomena, finding common ground for a particular group and drawing conclusions about what distinguishes it. The generalizations made have an empirical basis (p. 10). And the Deductive or Hermeneutic method provides its own alternative to the interpretation of the text. Not all methods are quantitative as part of the qualitative perspective of the generally dominant research concept (Hermida, 2020, p. 75-76).

As a data collection method for this exploration, a survey will be carried out, which, according to López and Fachelli (2015), is one of the most widely used social research methods in sociology and has transcended the limits of strict science. Research will become, sooner or later, the daily activities in which we all participate (p. 5-6).

To develop a data collection method, a tool is needed, according to Hernández and Avila (2020), that facilitates the measurement of data. In this sense, questionnaires are used to collect information, since it is a standard instrument used in field research to collect data for some quantitative studies, mainly through survey methods (p. 51-52). In this study, based on the above, the tool that will be used to conduct the interview with the 20 collaborators of the Integra Coffee company is the questionnaire.

For the data collection process, a video conference will be organized through the Google Meet platform with the aim of providing some scope of this research and informing about the implementation of a virtual survey, which will be sent through the manager to the 20 people selected as a sample of the study. Likewise, using technology, the Google Forms platform will be used to execute the previously validated questionnaire; on the said platform, a link will be obtained which will be sent to the company manager so that he can forward it to his 20 collaborators who make up this study. The said questionnaire will be executed on the Likert scale, having as response options 5 scales: (1) Never, (2) Almost Never, (3) Sometimes, (4) Almost Always and (5) Always. In addition, the questionnaire contains 52 questions that will be applied with the aim of collecting information about productivity and export in the said company. Likewise, the questionnaire is divided into two parts. The first part consists of 32 questions that will evaluate the company’s productivity in four dimensions: measurement of total production, evaluation of total production, planning of total production and improvement. The second part consists of 20 questions that evaluated Integra Coffee’s export in four dimensions: factors of production of goods, technology, goods and demand.

The validity and reliability of the instruments must be determined; therefore, this instrument has been previously validated in the thesis presented by Palacios and Sánchez (2021) regarding The Relationship between Competitiveness Factors and the Export Potential of Artisanal Microenterprises in the City of Cajamarca, 2021; its variation was by three experts in strategic business administration, economics and trade, and international business. Likewise, the reliability of this instrument was obtained from the research of Girón (2019) in the thesis Competitiveness Factors and the Export Potential of the Import and Export Company FELLES EIRL, Province of Huaura, 2019, taking the conceptual bases for the variable’s factors of competitiveness and for the variable export potential; also, having a reliability based on a Cronbach’s Alpha of 0.935 that can be verified on page 39 of the said study indicating the reliability of the said instrument.

After executing the data collection instrument, we begin to organize the data obtained in Excel and in the SPSS program in IBM version 25. We will access the different tables that describe the information and results of the variables and dimensions in addition to the correlations to validate our hypotheses.

The estimated dimensions for each variable were then:

Table 1: Operationality of Variables

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Source: Sumanth Model and Heckscher-Ohlin Model

Results

The results of the application of the survey carried out to the collaborators of the Integra Coffee company located in Jaén are presented. This survey has a Likert scale made up of five levels from 1 to 5, where the first level is never and the fifth is always. This information was collected through a survey carried out through the Google Forms platform to the company’s collaborators in a sample of 20 elements.

Fig. 1 Percentage value of the productivity variable

Figure 1 shows the general results of the assessment of the four dimensions of the productivity variable by 2023. 48% of the employees said that the productivity cycle is always carried out efficiently, while 43% said that it is almost always the case. However, 7% of the employees said that it is sometimes; 1% said that it is almost never the case; and 2% of the 20 Integra Coffee employees said that it is never the case.

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Fig. 2 Overall percentage value of the export variable

Figure 2 shows the general results of the assessment of the four dimensions of the export variable, with 35% of the 20 collaborators surveyed from the Integra company. Coffee companies say that the company always takes these factors into account; 33% say that they almost always do. However, 21% think that they sometimes do so; 8% say that they almost never do so; and 3% say that they never take these factors into account when it comes to exports in the Integra Coffee 2023 company.

Likewise, statistical inference is shown:

Table 2: Normality Test of the Productivity and Export Variable

Source: Lilliefors significance correction

In Table 02, the normality test is presented, according to the characteristics of the sample presented in the study consisting of 20 elements. The Shapiro-Wilk test was used, following the indications of Shapiro-Wilk analysis, which state that it is used when a sample less than or equal to fifty elements is presented. In this sense, the level of significance for both productivity and export variables is presented as being less than 0.05, meaning that there is no normal distribution of the data. In relation to this, Spearman’s non-parametric compensation will be worked on.

For this study, it is necessary to carry out an objective test:

Table 3: General Objective Test: Relationship between Productivity and Export

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Source: SPPS Cross Tables

Table 03 shows that 80% of the 20 collaborators who took part in this study affirm that there is always a relationship between productivity and exports, and 20% believe that there is almost always. Therefore, it is determined that there is a relationship between productivity and exports in the INTEGRA COFFEE agroindustry of Jaén, in the department of Cajamarca in the year 2022.

Table 4: General Hypothesis Test: Relationship between Productivity and Export

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Source: SPPS Cross Tables

Table 04 shows the correlation with a Spearman Rho coefficient of 0.905, which indicates, according to the Spearman compensation intervals, that there is a perfect positive compensation between the productivity and export variables in the Integra Coffee company. Likewise, it presents a significance level of less than 0.05, meaning that the variables are related to each other; in that sense, when we execute productivity correctly, we achieve exports at their maximum level. Therefore, the general hypothesis planned for this research is accepted, establishing that Ha: There is a relationship between productivity and export in the INTEGRA COFFEE agroindustry of Jaén, in the department of Cajamarca in the year 2022; consequently, the null hypothesis is rejected, which establishes that Ho: There is no relationship between productivity and exports in the INTEGRA COFFEE agroindustry of Jaén, in the department of Cajamarca in the year 2022.

Discussion and Conclusions

The discussion of the results is presented, comparing them with previous research and theoretical background.

This research determines the relationship between productivity and export in the agro-industrial company INTEGRA COFEE of Jaén in the department of Cajamarca in the year 2022, which is demonstrated with a Rho Spearman coefficient of 0.905, which indicates that there is a perfect positive compensation between the productivity and export variables in the Integra Coffee company. Likewise, it presents a significance level of less than 0.05, meaning that the variables are related to each other, showing that when productivity is executed correctly, exports are achieved at their highest level. In addition, there are internal factors, such as the company’s infrastructure and human resource management, and external factors, such as environmental factors, which directly impact the production process, affecting the company’s exports and income. This result is comparable with the study carried out by Portocarrero (2020), who, using the Spearman Rho test, found a moderate level of variation between the productivity and export variables. The coefficient of 0.589 obtained from this test indicates that productivity is significantly correlated with the export of Hass avocado from Prohass Peru 2020.

Considering the context from this research and the previously reviewed background, it is confirmed that, in the agro-industrial sector, productivity is essential for exports to be generated efficiently. Portocarrero (2020) found that any increase in productivity directly translates into an increase in the value of exports. Similarly, productivity increases as the export volume increases. Likewise, Paxi (2017) and Leyva and Palomino (2022) presented similar studies where they show that competently developed productivity generates exports at an optimal level.

As for the manufacturing sector, exports and productivity have a strong causal relationship that shows a positive compensation between productivity and gross fixed capital formation and manufacturing exports. To the extent that productivity has greater and longer-term effects that outweigh the effects of gross fixed capital formation.

On the other hand, Girón (2019) found in the SME sector that internal factors significantly affect the export potential of companies. That is, the inadequate use of methodologies generates a delay in productivity, resulting in inefficient or non-existent exports.

Considering the above, we can say that the optimal development of productivity is essential to carry out successful exportation without depending on the context in which it can be developed, that is, the context cannot influence the importance of productivity with reference to exportation.

In that sense, it is theoretically contrasted according to Carro and Gonzales (2012); productivity is the improvement of the production process, which means a positive comparison between the number of resources and raw materials used and the services produced. In this study, it was found that 48% of the employees indicate that productivity is always optimally developed because the measurement, planning, evaluation and improvement of total production are carried out efficiently.

Likewise, the planning of Urrosolo et. al (2018) is confirmed since it defines export as the delivery of a product or service to a foreign nation or a third country for commercial reasons. 80% of the collaborators indicate that an optimal export is carried out if the production factors of inputs are developed effectively. There is technology in accordance with the market. Goods are proposed that satisfy a need and the demand for this good is increasing.

Limitations were found at the time of searching for information regarding the agro-industrial sector at the local level, since most of the information is found in the agricultural sector. However, the study of these variables is essential in any sector; therefore, for this study, background information from sectors related to the objective of the study was considered.

It is recommends conducting research focused on productivity and exports, since these are important aspects for the optimal development of a company involved in exports or that is trying to join this group. Therefore, the more studies related to these variables, regardless of the sector on which the information is focused, the more valuable and enriching it will be.

On the other hand, from the present study it can be concluded that:

In accordance with the general objective of this research, we can conclude that there is a perfect positive relationship between the productivity variable and exports in the INTEGRA COFFEE agroindustry of Jaén, in the department of Cajamarca in 2022. This result was obtained through the Rho Spearman coefficient of 0.905 and a significance level of less than 0.05; that is, the variables are related to each other. In this sense, it is demonstrated that when productivity is properly managed, efficient exports will be obtained.

References

 

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