Sustainable Supply Chain Management: A Case Study of Indonesia's Cocoa Industry

s of doctoral theses on the Indonesian economy 115 stages. The results also suggest that contingencies such as mutual trust, long-term relationships and the degree of information sharing will determine how successfully sustainable practices can be adopted and, hence, their effect on supply chain performance. © 2013 Normansyah Syahruddin http://dx.doi. org/10.1080/00074918.2013. 779770 The Dynamics of Entrepreneurial Human Capital Russell Toth (russell.toth@sydney.edu.au) Accepted 2012, Cornell University There is broad international recognition of the importance of entrepreneurship for economic growth and development, yet we know relatively little about the process by which entrepreneurs come into being and achieve success. Existing economic theories of entrepreneurial dynamics are often based on constraints (in particular, financial constraints) that are external to entrepreneurs and their enterprises. This thesis proposes that entrepreneurial human capital (EHC) constitutes a crucial and largely overlooked factor in entrepreneurial dynamics, at least in the economics literature. It builds models that capture the relevant mechanisms, and then tests them by using the rich data on occupational histories and enterprise characteristics collected during the four waves of the Indonesia Family Life Survey. The thesis begins by revisiting the evidence for financial constraints to household-level enterprise activity in Indonesia. It introduces a new test to the literature, using semi-parametric econometric methods to observe the relationship between household wealth and enterprise activity while controlling for additional covariates. It also constructs tests based on positive wealth shocks as a form of positive financing shock. It uncovers important heterogeneity in financial constraints and refutes that financing is the binding constraint to enterprise activity in most percentiles of the wealth distribution, particularly for the poor. In the remaining two chapters, the thesis tests variants of a model of dynamic EHC accumulation. First, it exploits a unique natural experiment that causes relatively high-ability individuals to accumulate enterprise experience when they otherwise would not have done so, through labour-market churning during the financial crisis of the late 1990s. It finds that individuals who were self-employed or were running a business early in their careers and during the crisis had a much higher propensity to be running a business nine years later than did other cohorts. In looking at earnings dynamics, the thesis finds that this cohort initially had lower business earnings than their counterfactual expected wage but then had higher earnings over time. It argues that these facts are consistent with a model of EHC accumulation, which predicts that changes in EHC through learning-bydoing should lead to greater persistence, and that this effect should be particularly strong for individuals with no prior experience. The thesis also exploits the occupational shock, to provide causal evidence for an economically significant value of entrepreneurial experience.