The Effect of Management Efficiency on the Business Sustainability of Fresh Fruit Bunches in Rokan Hilir Regency

Abstract

The palm oil industry is one of the main pillars of the economy in Riau Province, particularly in Rokan Hilir Regency, where Fresh Fruit Bunch (FFB) plantation businesses play a strategic role in regional economic growth and employment. However, the sustainability of these businesses is increasingly threatened by global commodity price volatility, tightening environmental regulations, and intensifying market competition, all of which demand a high level of managerial competence from business actors. This study aims to analyze the effect of management efficiency on the business sustainability of FFB plantations in Rokan Hilir Regency, Riau Province. A causal associative quantitative approach was employed, with data collected through questionnaires distributed to plantation managers and business owners in the region. Data were analyzed using descriptive statistics and simple linear regression. The results reveal that management efficiency, measured through indicators of planning, organizing, implementation, and supervision, achieves an overall mean score of 3.84, categorized as good, while business sustainability reaches a mean score of 3.965, reflecting a stable condition. Hypothesis testing yields a regression coefficient of 0.782, a t-value of 12.450, and a significance value of 0.000, confirming a positive and statistically significant effect. The coefficient of determination indicates that 68.4% of the variation in business sustainability is explained by management efficiency. These findings affirm that strengthening managerial capacity is essential to ensuring the long-term viability and competitiveness of FFB plantation businesses in the region.