Title: Governance structure choice in the supply chain of broiler chickens: an empirical study in Central Java, Indonesia

Authors: Aries Susanty; Hery Suliantoro; Eveline Siburian; Ahmad Syamil

Addresses: Department of Industrial Engineering, Diponegoro University, Prof Soedarto, Campus Tembalang, Semarang, Indonesia ' Department of Industrial Engineering, Diponegoro University, Prof Soedarto, Campus Tembalang, Semarang, Indonesia ' Department of Industrial Engineering, Diponegoro University, Prof Soedarto, Campus Tembalang, Semarang, Indonesia ' Bina Nusantara University, Jakarta, Indonesia

Abstract: This study aims to clarify the dominant factors (which can be defined as antecedent factors) influencing the structure choice in the supply chain governance of traders and middlemen of broiler chickens. This study has utilised closed-ended questionnaires with a five-point Likert scale distributed to several traders and middlemen of broiler chickens in the traditional town market in Semarang City of Central Java Province. One hundred and twenty-five copies of the questionnaire were administered to the traders of broiler chickens in these marketplaces: North Johar, Central Johar, South Johar, Bulu, Karangayu, Peterongan, and Jatingaleh. Additional information was collected through follow-up telephone interviews and archive records. Data acquired from the questionnaire were processed using structural equation modelling (SEM). The findings indicate that the transaction cost economy and the collaborative advantage have a significant positive effect on the level of integration; in this case, the effect of the transaction cost economics is stronger than that of collaboration advantages. The findings also suggest that the transaction cost economics significantly depends on uncertain conditions between traders and the middlemen; whereas, the collaborative advantage significantly depends on uncertain conditions and collaboration capability.

Keywords: transaction cost economics; TCE collaborative advantage; level of integration; broiler chicken; supply chain; Semarang; Indonesia.

DOI: 10.1504/IJSTM.2018.094442

International Journal of Services Technology and Management, 2018 Vol.24 No.5/6, pp.414 - 444

Received: 11 Oct 2016
Accepted: 25 May 2017
Published online: 03 Sep 2018 *

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