The role of smallholder human resources in cocoa bean supply chain performance in Central Sulawesi, Indonesia: A structural equation. This study adopted the model of Garcia-Alcaraz et al. 2017) and adapted the model to conditions in the supply chain of cocoa beans in Indonesia. Ha3: Smallholder resource skills in cocoa cultivation have a direct and positive effect on the economic performance of the cocoa bean supply chain.
Ha5: Supply chain flexibility has a direct and positive effect on the economic performance of the cocoa bean supply chain.
Direct effects
Ha4: Statistically, there is sufficient evidence to state that SCA had a direct and positive effect on cocoa bean SCEP. This was in line with the previous theory, which stated that SCA had a positive effect on SCEP (Garcia-Alcaraz et al., 2017). Ha5: Statistically, there is sufficient evidence to state that SCF had a direct and positive effect on the economic performance of the cocoa bean supply chain.
This is consistent with the previous theory which stated that SCF had a positive effect on
Indirect effects
SCF can be the result of several elements, such as rejuvenating old cocoa crops, using and pruning protective trees, and using extension services and training in the cocoa fields (Effendy, 2015; Effendy, 2018b). Ha6: Statistically, there is sufficient evidence to state that SCF had a direct and positive effect on SCA for cocoa farming in terms of making changes in the production process. This result was in line with the previous theory, which stated that SCF had a positive effect on SCA (Das, 2011; Garcia-Alcaraz et al., 2017).
Cocoa farmers are thus required to build flexible organizations to increase the production and quality of cocoa beans to meet consumer demand.
Total effects
Conclusions
An analysis of the direct and mediated effects of employee engagement and supply chain integration on organizational performance. The role of farmer organizations in optimizing supply chain performance and added value of cocoa : a case study in Kolaka, Southeast Sulawesi. The development and potential evaluation of ecotourism in Indonesia's Lore Lindu National Park in relation to the economic growth of the surrounding community.
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This study aimed to analyze the role of smallholder cocoa farming human resource skills on cocoa bean supply chain performance in Indonesia and uses structural equation modeling (SEM) for this purpose.
Introduction
Increasing education and skills would lead smallholder farmers to adopt technologies recommended by universities, government and the private sector to implement efficient production processes to produce high quality cocoa beans. This means that productivity is very low, and so is the quality of cocoa beans; therefore, it is a limiting factor in the development of Indonesian cocoa (Effendy & Antara, 2015; Effendy, 2018b). This situation is exacerbated by the weak bargaining position of farmers in the market system (Hasibuan et al., 2015).
Traders are parties that enjoy very high margins in the cocoa market system, so prices at the farmer level become very low (Sisfahyuni, Saleh, & Yantu, 2011; Abubakar, Yantu, & Asih, 2013). Traders became capable of dictating to farmers because farmers were characterized by poor knowledge and little financial power (Hasibuan et al., 2015). The dominance of traders in the cocoa marketing system in Indonesia means that the cocoa supply chain, in general, is not optimized (Hasibuan et al., 2015; Herawati, Rifin, & Tinaprilla, 2015).
Better management of the supply chain could bring benefits to producers and consumers in terms of price, time, food security and market access (Wong, 2007). These activities include the procurement of inputs, production processes, product storage, distribution and commercialization (Garcia-Alcaraz et al., 2017), and there are several factors that influence these activities. While there are factors that play a key role in the supply chain, the literature has failed to fully establish how they affect the performance of different farms and farms (Soin 2004; Li, Kramer, .. 2015). More than 13 factors in supply chain performance were identified, including labor, flexibility, agility, communications and regional infrastructure.
The influence of these factors and their interactions deserve investigation in the supply chain of cocoa beans in Indonesia, because a better understanding can have an impact on the sustainability of cocoa farming. This study aimed to analyze the role of smallholder cocoa farming human resource skills on the performance of the cocoa bean supply chain in Indonesia.
Materials and Methods
- Study areas and sample design
- Theoretical and research model
- Human resources in the supply chain
- Supply chain agility
- Supply chain flexibility
- Supply chain economic performance
- Data collection
- Structural equation modeling
Human resources are key indicators of a company's success, as human factors are considered a critical aspect of the supply chain (Lengnick-Hall, Lengnick-Hall, & Rigsbee, 2013; Garcia-Alcaraz et al., 2017). A recent study addressing the human resource element of the supply chain (Garcia-Alcaraz et al., 2017) presented 4 factors that influenced wine supply chain integration, and the most important factor was the influence of human resources on supply chain flexibility. . For example, some researchers have studied the impact of human resources on supply chain flexibility (Das 2011; Lengnick-Hall et al. 2013;.
Jin, Vonderembse, Ragu-Nathan, and Smith, 2014; Blome, Schoenherr, & Eckstein, 2014), for example (Garcia-Alcaraz et al., 2017), the effect of human resources on wine supply chain flexibility. These authors find that supply chain flexibility has a strong influence on wine supply chain agility. Supply chain performance in this study was measured using economic units because supply chain economic performance reflects the ultimate goal of the firm (Searcy, McCartney, & Karapetrovic, 2007).
Another source of successful supply chain economic performance is agility, where organizations adapt to demand uncertainty (Garcia-Alcaraz et al., 2017). In addition to supply chain agility, it is also necessary to analyze supply chain flexibility. Ha4: Smallholder resource skills in cocoa farming have a direct and positive effect on the economic performance of the cocoa bean supply chain.
Ha5: The flexibility of the supply chain has a direct and positive effect on the financial performance of the cocoa bean supply chain. Ha6: Supply chain flexibility has a direct and positive effect on the economic performance of the cocoa bean supply chain.
Results and Discussion
Testing goodness-of-fit with structural equation modeling (SEM)
Ha2: Statistically, there is enough evidence to state that smallholder resource skills in cocoa farming have a direct and positive effect on the flexibility of the cocoa bean supply chain. This is in line with the previous hypothesis, which stated that human resource skills had a positive effect on supply chain flexibility (SCF) (Das 2011; Lengnick-Hall et al. Ha4: Statistically, there is enough evidence to state that smallholder resource skills in cocoa farming has a direct and positive effect on the economic performance of the cocoa bean supply chain.
Ha6: Statistically, there is enough evidence to state that SCF had a direct and positive effect on the financial performance of the cocoa bean supply chain. HRS coefficient values higher than 0.5 indicate that HRS has the highest effect on the economic performance of the cocoa bean supply chain, so smallholder resources should be improved through extension services and training to increase the income of cocoa farmers (Effendy et al., 2019). Smallholder Human Resources on the Performance of the Supply Chain of Cocoa Beans in Central Sulawesi Indonesia: A Structural Equation Modeling Analysis” in its current form for publication in.
This study aimed to analyze the effects of smallholder human resource skills in cocoa farming on cocoa bean supply chain performance in Indonesia and uses structural equation modeling (SEM) for this purpose. This study adopted a model from Garcia-Alcaraz et al. 2017) and adapted the model to the conditions of the cocoa bean supply chain in Indonesia. Human resources are key indicators of a company's success because human factors are considered a critical aspect of the supply chain (Garcia-Alcaraz et al., 2017; . Lengnick-Hall, Lengnick-Hall, & Rigsbee, 2013).
Lengnick-Hall et al. 2013) and (Garcia-Alcaraz et al., 2017) report on the effects of human resources on wine supply chain flexibility. The economic performance of the supply chain covers the economic output of the company, such as sales growth, profitability and cash flow (Garcia-Alcaraz et al., 2017). Frequency of use of cocoa farming advisory services and training X9 Supply Chain Economic Performance (SCEP) 1.
This is consistent with the previous hypothesis, which stated that human resource capabilities had a positive effect on supply chain flexibility (SCF) (Blome et al.