From Growth to Fall : Analyzing Strategic Misalignment in Indonesia Agritech Startup

Abstract

This research evaluates the causes of business strategy failure in PT X, an Indonesian agritech startup that experienced rapid growth followed by organizational decline and eventual operational shutdown. Using a strategic management lens, this study examines the misalignment between strategic formulation, implementation capacity, risk governance, financial sustainability, and the external market environment. The research employs a qualitative single case study approach, integrating primary data from in depth interviews with five former strategic level employees and secondary data from reports, industry publications, and company records Findings show that PT X adopted an aggressive growth strategy inconsistent with its operational readiness, unit economics, and industry characteristics. Strategic failure emerged from weaknesses in internal capabilities, an overreliance on continuous investor funding, immature risk management systems, and inadequate corporate governance structures. Externally, declining venture capital funding, intensifying competition, and the structural inefficiencies of Indonesia’s agricultural supply chain exacerbated the company’s vulnerabilities. This study contributes to the literature by providing an empirical analysis of failure trajectory in agritech startups within emerging markets. It highlights the importance of strategic risk integration, adaptive execution, and realistic growth planning for technology driven supply chain businesses. The paper offers practical implications for startup founders, investors, and regulators seeking to strengthen the sustainability of the agritech ecosystem in Indonesia.