BUKU ABSTRAK - Universiti Putra Malaysia

The use of Internet Applications in Managing Logistics Activities among Palm Oil
Industry Participants
Dr. Nitty Hirawaty Kamarulzaman
Nolila Mohd. Nawi
Faculty of Agriculture, University Putra Malaysia,
43400 UPM Serdang, Selangor, Malaysia.
+603-8946 4133; nitty@agri.upm.edu.my
Keywords: Internet, e-Commerce, logistics activities, e-Logistics
Off-farm Employment Participation among Paddy Farmers in the Muda Agricultural
Development Authority and Kemasin Semerak Granary Areas of Malaysia
Dr. Norsida Man
Faculty of Agriculture, University Putra Malaysia,
43400 UPM Serdang, Selangor, Malaysia.
+603-8946 7501; norupi@hotmail.com
Keywords: Off-farm employment, paddy farmers, logit model, participation decision
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Agriculture
With the advancement of Internet technologies, many companies have adopted the use of the technologies to
improve the efficiency and effectiveness of their activities. This paper aims to investigate the utilisation of Internet
technologies in the Malaysian Palm Oil Industry (MPOI) and explore how the technologies have been exploited
by the palm oil industry participants to manage their logistics activities. The respondents of this study were
MPOI participants involved in Internet-based activities. The findings revealed that Internet applications were
still new and at an early stage. Many participants did not realise the potential of advanced Internet technologies
in managing their business activities. Lack of understanding of advanced Internet technologies explains the low
level of utilisation of these technologies among the MPOI participants. Most of the participants were comfortable
with conventional ways of managing their logistics activities.
The off-farm employment is gaining attention particularly as a strategy for supplementing the farmers’
income, and it has been widely recognised that the off-farm work plays a very important role in augmenting small
farmers’ income in developing countries. In fact, it has been considered as an alternative source of income for
the agricultural sector and an essential way to increase the overall rural economic activity and employment in
many developing countries. The objectives of the present study are to assess the off-farm employment decisions
of 500 paddy farmers in the granary areas of MADA and Kemasin Semerak. Specifically, the study (a) determines
the relationship between the determinants of off-farm employment and the off-farm participation decision, (b)
describes the characteristics of respondents and their status in off-farm employment, (c) examines the income
level of the farm households attributable to paddy farming and off-farm employment, and (d) describes the effect
off-farm employment has on paddy farmers. The results reveal that the farmers’ age, gender and number of
dependants, as well as other income and the types of farm were the variables that influenced their likelihood to
engage in off-farm employment. Evidently, the variables of farm size and level of education were insignificant in
affecting off-farm participation.