The Impact of Collaborative Networks on Supply Chain Performance: A Case Study of Fresh Vegetable Commodities in Indonesia

Authors

  • Edi Susanto Faculty of Industrial Technology, Institut Teknologi Nasional Bandung, Jl. PKH Mustapa No. 23, Bandung, Indonesia and Faculty of Technology Management and Technopreneurship, Universiti Teknikal Malaysia Melaka, Jalan TU62, 75450 Ayer Keroh, Melaka, Malaysia
  • Norfaridatul Akmaliah Othman Faculty of Technology Management and Technopreneurship, Universiti Teknikal Malaysia Melaka, Jalan TU62, 75450 Ayer Keroh, Melaka, Malaysia
  • Arief Irfan Syah Tjaja Faculty of Industrial Technology, Institut Teknologi Nasional Bandung, Jl. PKH Mustapa No. 23, Bandung, Indonesia
  • Suwarni Tri Rahayu Research Centre for Appropriate Technology, National Research and Innovation Agency, KS Tubun Street No. 5 Cigadung, Subang, West Java, Indonesia
  • Sri Gunawan Department of Agrotechnology, Faculty of Agriculture, Stiper Agricultural Institute Yogyakarta, Jl. Nangka II, Depok, Sleman, Yogyakarta, Indonesia
  • Adi Saptari Faculty of Business, President University, Jababeka Education Park, Jl Kihajar Dewantara, Cikarang Utara, Bekasi Regency, West Java, Indonesia and Faculty of Technology Management and Technopreneurship, Universiti Teknikal Malaysia Melaka, Jalan TU62, 75450 Ayer Keroh, Melaka, Malaysia

DOI:

https://doi.org/10.18196/agraris.v9i1.134

Keywords:

Collaborative network, Quality Control Circle (QCC), Supply chain, Fresh vegetable, Supplier-buyer

Abstract

A collaborative performance system focuses on sustainable performance management in a sustainable supply chain. This system was employed to determine the relationship between the farmer group association (Gapoktan) of Lembang Agri (LA) that produce fresh vegetables and supermarkets as purchasing partners to improve performance. This study is crucial due to the shift in farmers’ roles from merely producers to entrepreneurs. This study utilized the dependency theory to explore the impact of collaborative networks on information and resource sharing and supply chain performance, as well as determine the appropriate orientation for collaborative supply chain indicators. The study surveyed 80 respondents representing different types of partnership structures from a parallel or supplier-buyer supply chain structure perspective. Moreover, the model developed on collaborative networks, information sharing, resource sharing and supply chain performance was analyzed using structural equation modeling (SEM). The results unveiled a positive and significant indirect relationship between collaborative networks and supply chain performance. The implication could be applied to identify the developing theories concerning collaborative network relationships and information and resource sharing related to supply chain performance on their networks, especially in producing fresh horticultural commodities. This study is essential to enrich the limited research in this industry.

References

Afum, E., Agyabeng-Mensah, Y., Acquah, I. S. K., Baah, C., Dacosta, E., Owusu, C. S., & Amponsah Owusu, J. (2021). Examining the Links between Logistics Outsourcing, Company Competitiveness and Selected Performances: The Evidence from an Emerging Country. The International Journal of Logistics Management, 32(3), 1068–1090. https://doi.org/10.1108/IJLM-05-2020-0205

Aharonovitz, M. C. S., Vieira, J. G. V., & Suyama, S. S. (2018). How Logistics Performance is Affected by Supply Chain Relationships. The International Journal of Logistics Management, 29(1), 284–307. https://doi.org/10.1108/IJLM-09-2016-0204

Ajayi, B. (2016). The Impact of Entrepreneurial Orientation and Networking Capabilities on the Export Performance of Nigerian Agricultural SMEs. Journal of Entrepreneurship and Innovation in Emerging Economies, 2(1), 1–23. https://doi.org/10.1177/2393957515619720

Andrevski, G. (2009). Competitive Strategy, Alliance Networks, and Firm Performance (Doctoral Dissertation, University of Kentucky, Kentucky, United States). Retrieved from https://uknowledge.uky.edu/cgi/viewcontent.cgi?article=1713&context=gradschool_diss

Aragón-Correa, J. A., Martín-Tapia, I., & Hurtado-Torres, N. E. (2013). Proactive Environmental Strategies and Employee Inclusion: The Positive Effects of Information Sharing and Promoting Collaboration and the Influence of Uncertainty. Organization and Environment, 26(2), 139–161. https://doi.org/10.1177/1086026613489034

Arikunto, S. (2010). Prosedur Penelitian Suatu Pendekatan Praktek. Jakarta: Rineka Cipta.

Assbeihat, J. M. (2016). The Impact of Collaboration among Members on Team’s Performance. Management and Administrative Sciences Review, 5(5).

Berita Satu. (2022). Kemtan: Produksi Pertanian dan Sayuran Segar Sangat Mencukupi. Retrieved https://www.beritasatu.com/ekonomi/636973/kemtan-produksi-pertanian-dan-sayuran-segar-sangat-mencukupi

Beske-Janssen, P., Johnson, M. P., & Schaltegger, S. (2015). 20 Years of Performance Measurement in Sustainable Supply Chain Management – What Has Been Achieved? Supply Chain Management, 20(6), 664–680. https://doi.org/10.1108/SCM-06-2015-0216

Camisón, C., & Villar-López, A. (2014). Organizational Innovation as An Enabler of Technological Innovation Capabilities and Firm Performance. Journal of Business Research, 67(1), 2891–2902. https://doi.org/10.1016/j.jbusres.2012.06.004

Cao, M., Vonderembse, M. A., Zhang, Q., & Ragu-Nathan, T. S. (2010). Supply Chain Collaboration: Conceptualisation and Instrument Development. International Journal of Production Research, 48(22), 6613–6635. https://doi.org/10.1080/00207540903349039

Cheshire, L., Meurk, C., & Woods, M. (2013). Decoupling Farm, Farming and Place: Recombinant Attachments of Globally Engaged Family Farmers. Journal of Rural Studies, 30, 64–74. https://doi.org/10.1016/j.jrurstud.2012.11.005

Chin, W. W. (1998). The Partial Least Square Approach to Structural Equation Modeling. In G. A. Marcoulides (Ed.), Modern Method for Business Research. New Jersey: Lawrence Erlbaum Associates.

Cocca, P., & Alberti, M. (2010). A Framework to Assess Performance Measurement Systems in SMEs. International Journal of Productivity and Performance Management, 59(2), 186–200. https://doi.org/10.1108/17410401011014258

Cordeiro, M. P., Viana, J. G. A., & Silveira, V. C. P. (2022). Influence of Meso-Institutions on Milk Supply Chain Performance: A Case Study in Rio Grande Do Sul, Brazil. Agriculture, 12(4), 482. https://doi.org/10.3390/agriculture12040482

Dania, W. A. P., Xing, K., & Amer, Y. (2018). Collaboration Behavioural Factors for Sustainable Agri-food Supply Chains: A Systematic Review. Journal of Cleaner Production, 186, 851–864. https://doi.org/10.1016/j.jclepro.2018.03.148

Doganay, A., & Ergun, S. (2017). The Effect of Supply Chain Collaboration on Supply Chaıin Performance. Journal of Management Marketing and Logistics, 4(1), 30–39. https://doi.org/10.17261/pressacademia.2017.377

Fawcett, S. E., Magnan, G. M., & McCarter, M. W. (2008). Benefits, Barriers, and Bridges to Effective Supply Chain Management. Supply Chain Management, 13(1), 35–48. https://doi.org/10.1108/13598540810850300

Ghozali, I., & Latan, H. (2012). Partial Least Square Konsep, Teknik dan Aplikasi Menggunakan Program SmartPLS 2.0 M3. Semarang: Badan Penerbit Universitas Diponegoro.

Gichuru, M., Iravo, M., & Arani, W. (2015). Collaborative Supply Chain Practices on Performance of Food and Beverages Companies: A Case Study of Del Monte Kenya Ltd. International Journal of Academic Research in Business and Social Sciences, 5(11), 17–31. https://doi.org/10.6007/ijarbss/v5-i11/1890

Gong, D., Liu, S., & Lu, X. (2015). Modelling the Impacts of Resource Sharing on Supply Chain Efficiency. International Journal of Simulation Modelling, 14(4), 744–755. https://doi.org/10.2507/IJSIMM14(4)CO20

Graça, P., & Camarinha-Matos, L. M. (2016). A Proposal of Performance Indicators for Collaborative Business Ecosystems. In H. Afsarmanesh, L. Camarinha-Matos, & A. Lucas Soares (Eds.), Collaboration in a Hyperconnected World. PRO-VE 2016. IFIP Advances in Information and Communication Technology, vol 480 (Vol. 480, pp. 253–264). Cham: Springer. https://doi.org/10.1007/978-3-319-45390-3_22

Gunasekaran, A., & Kobu, B. (2007). Performance Measures and Metrics in Logistics and Supply Chain Management: A Review of Recent Literature (1995-2004) for Research and Applications. International Journal of Production Research, 45(12), 2819–2840. https://doi.org/10.1080/00207540600806513

Gurzawska, A. (2020). Towards Responsible and Sustainable Supply Chains – Innovation, Multi-stakeholder Approach and Governance. Philosophy of Management, 19(3), 267–295. https://doi.org/10.1007/s40926-019-00114-z

Hall, D. C., & Saygin, C. (2012). Impact of Information Sharing on Supply Chain Performance. International Journal of Advanced Manufacturing Technology, 58, 397–409. https://doi.org/10.1007/s00170-011-3389-0

Heizer, J., & Render, B. (2015). Manajemen Operasi: Management Keberlangsungan dan Rantai Pasokam (11th Editi). Jakarta: Salemba Empat.

Jamshidi, O., Asadi, A., Kalantari, K., Azadi, H., & Scheffran, J. (2019). Vulnerability to Climate Change of Smallholder Farmers in the Hamadan Province, Iran. Climate Risk Management, 23, 146–159. https://doi.org/10.1016/j.crm.2018.06.002

Jonsson, P., & Mattsson, S. A. (2013). The Value of Sharing Planning Information in Supply Chains. International Journal of Physical Distribution & Logistics Management, 43(4), 282–299. https://doi.org/10.1108/IJPDLM-07-2012-0204

Jraisat, L., Gotsi, M., & Bourlakis, M. (2013). Drivers of Information Sharing and Export Performance in the Jordanian Agri-food Export Supply Chain: A Qualitative Study. International Marketing Review, 30(4), 323–356. https://doi.org/10.1108/IMR-03-2012-0056

Kementerian Pertanian Republik Indonesia. (2018). Export-Economic Community (AEC) in 2018. Jakarta: Kementerian Pertanian Republik Indonesia.

Kementerian Pertanian Republik Indonesia. (2023). Kementan : Petani Adalah Pelaku Utama Pembangunan Pertanian. Retrieved January 23, 2023, from https://www.pertanian.go.id/home/?show=news&act=view&id=2158#

Kumar, R., K. Singh, R., & Shankar, R. (2014). Strategy Development by Indian SMEs for Improving Coordination in Supply Chain. Competitiveness Review, 24(5), 414–432. https://doi.org/10.1108/CR-06-2012-0016

Larsson, M. (2012). Environmental Entrepreneurship in Organic Agriculture in Järna, Sweden. Journal of Sustainable Agriculture, 36(2), 153–179. https://doi.org/10.1080/10440046.2011.620225

Lohmer, J., Bugert, N., & Lasch, R. (2020). Analysis of Resilience Strategies and Ripple Effect in Blockchain-Coordinated Supply Chains: An Agent-based Simulation Study. International Journal of Production Economics, 228, 107882. https://doi.org/10.1016/j.ijpe.2020.107882

Maertens, M., Minten, B., & Swinnen, J. (2012). Modern Food Supply Chains and Development: Evidence from Horticulture Export Sectors in Sub-Saharan Africa. Development Policy Review, 30(4), 473–497. https://doi.org/10.1111/j.1467-7679.2012.00585.x

Martin, G., Martin-Clouaire, R., & Duru, M. (2013). Farming System Design to Feed the Changing World. A review. Agronomy for Sustainable Development, 33, 131–149. https://doi.org/10.1007/s13593-011-0075-4

Miguel, P. L. de S., & Brito, L. A. L. (2011). Supply Chain Management measurement and its influence on Operational Performance. Journal of Operations and Supply Chain Management, 4(2), 56. https://doi.org/10.12660/joscmv4n2p56-70

Misni, F., & Lee, L. S. (2017). A Review on Strategic, Tactical and Operational Decision Planning in Reverse Logistics of Green Supply Chain Network Design. Journal of Computer and Communications, 5(8), 83–104. https://doi.org/10.4236/jcc.2017.58007

Mukti, G. W., Kusumo, R. A. B., & Pardian, P. (2017). Orientasi Kewirausahaan Petani Brokoli Skala Kecil Dalam Menghadapi Permintaan Pasar Tekstur (Studi Kasus Di Gapoktan Lembang Agri Kecamatan Lembang Kabupaten Bandung Barat). Paspalum: Jurnal Ilmiah Pertanian, 5(1), 15. https://doi.org/10.35138/paspalum.v5i1.33

Nakandala, D., Samaranayake, P., Lau, H., & Ramanathan, K. (2017). Modelling Information Flow and Sharing Matrix for Fresh Food Supply Chains. Business Process Management Journal, 23(1), 108–129. https://doi.org/10.1108/BPMJ-09-2015-0130

Panahifar, F., Byrne, P. J., Salam, M. A., & Heavey, C. (2018). Supply Chain Collaboration and Firm’s Performance: The Critical Role of Information Sharing and Trust. Journal of Enterprise Information Management, 31(3), 358–379. https://doi.org/10.1108/JEIM-08-2017-0114

Papakiriakopoulos, D., & Pramatari, K. (2010). Collaborative Performance Measurement in Supply Chain. Industrial Management and Data Systems, 110(9), 1297–1318. https://doi.org/10.1108/02635571011087400

Piotrowicz, W., & Cuthbertson, R. (2015). Performance Measurement and Metrics in Supply Chains: An Exploratory Study. International Journal of Productivity and Performance Management, 64(8), 1068–1091. https://doi.org/10.1108/IJPPM-04-2014-0064

Rodrigues, V. S., Harris, I., & Mason, R. (2015). Horizontal Logistics Collaboration for Enhanced Supply Chain Performance: An International Retail Perspective. Supply Chain Management, 20(6), 631–647. https://doi.org/10.1108/SCM-06-2015-0218

Sangwan, K. S. (2017). Key Activities, Decision Variables and Performance Indicators of Reverse Logistics. Procedia CIRP, 61, 257–262. https://doi.org/10.1016/j.procir.2016.11.185

Saragih, B. (2015). Membumikan Paradigma Agribisnis: 20 Tahun. Jakarta: Pusat Pangan Agribisnis.

Schütz, F., Heidingsfelder, M. L., & Schraudner, M. (2019). Co-shaping the Future in Quadruple Helix Innovation Systems: Uncovering Public Preferences toward Participatory Research and Innovation. She Ji: The Journal of Design, Economics, and Innovation, 5(2), 128–146. https://doi.org/10.1016/j.sheji.2019.04.002

Shin, N., Park, S. H., & Park, S. (2019). Partnership-based supply chain collaboration: Impact on commitment, innovation, and firm performance. Sustainability (Switzerland), 11(2), 449. https://doi.org/10.3390/su11020449

Shu, H. S. (2012). The Relationship Between Learning Orientation And Business Performance And The Moderating Effect Of Competitive Advantage: A Service Organization Perspective. The Journal of Human Resource and Adult Learning, 8(2), 42–49.

Simatupang, T. M., & Sridharan, R. (2005). The Collaboration Index: A Measure for Supply Chain Collaboration. International Journal of Physical Distribution and Logistics Management, 35(1), 44–62. https://doi.org/10.1108/09600030510577421

Simatupang, T. M., & Sridharan, R. (2008). Design for Supply Chain Collaboration. Business Process Management Journal, 14(3), 401–418. https://doi.org/10.1108/14637150810876698

Srinivasan, M., Mukherjee, D., & Gaur, A. S. (2011). Buyer-Supplier Partnership Quality and Supply Chain Performance: Moderating Role of Risks, And Environmental Uncertainty. European Management Journal, 29(4), 260–271. https://doi.org/10.1016/j.emj.2011.02.004

Stefanovic, N., & Stefanovic, D. (2011). Supply Chain Performance Measurement System Based on Scorecards and Web Portals. Computer Science and Information Systems, 8(1), 167–192. https://doi.org/10.2298/CSIS090608018S

Susanto, E., & Othman, N. A. (2021). The Factors Influencing Modeling of Collaborative Performance Supply Chain: A Review on Fresh Produce. Uncertain Supply Chain Management, 9(2), 373–392. https://doi.org/10.5267/j.uscm.2021.2.005

Susanto, E., Othman, N. A., Rahayu, S. T., Dzakiyullah, N. R., Handayani, E., Gunawan, S., & Hadiguna, R. A. (2022). Mediation effect of collaborative performance system on fresh produce supply chain performance with a lateral collaboration structure model. Uncertain Supply Chain Management, 10(4), 1147–1160. https://doi.org/10.5267/j.uscm.2022.8.012

Tai, Y.-M. (2011). Perceived Value for Customers in Information Sharing Services. Industrial Management and Data Systems, 111(4), 551–569. https://doi.org/10.1108/02635571111133542

Taticchi, P., Garengo, P., Nudurupati, S. S., Tonelli, F., & Pasqualino, R. (2015). A Review of Decision-Support Tools and Performance Measurement and Sustainable Supply Chain Management. International Journal of Production Research, 53(21), 6473–6494. https://doi.org/10.1080/00207543.2014.939239

Tsai, K. H. (2009). Collaborative Networks and Product Innovation Performance: Toward A Contingency Perspective. Research Policy, 38(5), 765–778. https://doi.org/10.1016/j.respol.2008.12.012

Zeng, S. X., Xie, X. M., & Tam, C. M. (2010). Relationship Between Cooperation Networks and Innovation Performance of SMEs. Technovation, 30(3), 181–194. https://doi.org/10.1016/j.technovation.2009.08.003

Downloads

Published

2023-05-09

How to Cite

Susanto, E., Othman, N. A., Tjaja, A. I. S., Rahayu, S. T., Gunawan, S., & Saptari, A. (2023). The Impact of Collaborative Networks on Supply Chain Performance: A Case Study of Fresh Vegetable Commodities in Indonesia. AGRARIS: Journal of Agribusiness and Rural Development Research, 9(1), 79–99. https://doi.org/10.18196/agraris.v9i1.134

Issue

Section

Research Article