Root Problem of Supply Chain Collaborative Practices and Strategies to Improve Competitive Advantage of Smallholders Beef Cattle Farming in Rural Areas

• Published in: Kuwait chapter of Arabian journal of business & management review 2017-09, Vol.6 (11), p.10-18
• Main Authors: Kadir , Syahriadi, Siregar , Ahmad Ramadhan, Hastang, Amar , Yunus, Mappigau , Palmarudi
• Format: Article
• Language: English
• Subjects: Beef; BEEF CATTLE; Capital assets; Cattle industry; CATTLE PRODUCTION; Collaboration; Competition; Competitive advantage; COMPETITIVENESS; Consumers; Cost control; DEALERS; DEVELOPING COUNTRIES; FARM MANAGEMENT; Farming; Food supply; LDCs; Research methodology; RURAL AREAS; Self sufficiency; SMALL FARMS; Social capital; Studies; Supply chains; Value chain; إدارة المزرعة; البلدان النامية; التجار; التنافسية; المزارع الصغيرة; المناطق الريفية; تربية المواشي; ماشية اللحم
• ISSN: 2224-8358; 2224-8358
• DOI: 10.12816/0040333

Low competitive advantage of smallholders beef cattle farming is a serious problem to enhance the livelihood of rural smallholders in developing countries, including Indonesia. The low competitive advantage of local beef cattle demonstrates a noticeable difficulty in terms of collaborative practices between actors in supply chain. Therefore, this study objectives is to explore root problems of collaborative practices, determine which the root problems cause low competitive advantage of smallholders beef cattle farming. Then, formulate strategies to improve the competitive advantage based on the root problems. The study was organized in three phases of research methods. In first phase, survey research method and Relative Important Index (RII) were used. In second phase, focus group discussion (FGD) and Fishbone analysis were used. In third phase, FGD and formulation strategy analysis was used. The results of the first phase, RII analysis show that there are slightly different perception among smallholder and traders on main root problems of collaborative practices. Thus, the result of the second phase, participant of the FGD agreed that goal congruence with information sharing was a root problems which cause the low competitive advantage. And finally, the result of third phase, participant of the FGD suggested key strategies to improve the competitive advantage, namely developing social capital, improving technologies and farm management practices, improving beef cattle logistic system, and organizing smallholder and traders into beef cattle supply chains groups.