The Causality Model of Maize Farmers’ Income: Integrating Social Capital, Supply Chain, and Competitive Advantage

Abstract

Social capital structure, effective supply chain, and competitive advantage have been expected to increase maize farmers’ income. Maize, as a main income, has not been able to prosper farmers yet. Structural Equation Modelling was applied to analyze the effectiveness of social capital, supply chain, and competitive advantage on the maize farmers’ income. This study was conducted with 120 maize farmers as samples in one of Indonesia's maize production centers. Three indicators measure each variable. Social capital indicators are trust, social network, and norm; supply chain is the flow of goods, flow of information, and flow of capital; the competitive advantage is cost leadership, product differentiation, and focus. Furthermore, the indicators of farmers’ income are land area, production, and labor. The study revealed that social capital did not directly impact maize farmers' income by the test variables of social capital, supply chain, and competitive advantage. In this case, in increasing maize farmers’ income, social capital needs to be supported by supply chain and competitive advantage as intervening variables. The study further revealed that social capital significantly affected the supply chain and competitive advantage, in which these two variables significantly influenced maize farmers’ income. Moreover, supply chain and competitive advantage have reinforced social capital to increase maize farmers’ income. From the intervening variables, competitive advantage was more vital to reinforce social capital than supply chain in increasing maize farmers’ income.

The Role of Logistics 4.0 in Agribusiness Sustainability and Competitiveness, A Bibliometric and Systematic Literature Review

“…Poor government policies, lack of technology and techniques, and lack of knowledge and awareness of farmers are the main challenges (Sharma et al, 2019). Likewise, these enterprises need to strengthen supply chain and competitive advantage; as they are important factors to increase maize farmers' income, social capital needs supply chain support and competitive advantage as intervention variables (Karim et al, 2020).…”

Bonding, bridging, and linking social capital combinations in maize agribusiness system

“…One of the factors at play when farmers interact with various actors is social capital. The integration with the supply chain this aspect is urgent and competitive advantage have contributed to increased maize production (Karim et al, 2021).…”

Management of the Sustainable Utilization of Ornamental Coral Wildlife on Pulau Kaung Village as Hobbyist Tourism

“…Coral reefs are important ecosystems that support a variety of marine life and have a vital ecological function because they are home to 93,000 species of marine biota (Bellwood and Wainwright, 2002;CRITC Coremap-LIPI, 2016;Intyas et al, 2020;United States Environmental Protection Agency, 2022). Coral reefs are found in many tropical waters, including Indonesia, which has approximately 12,5% -18% of the total worldwide (Karim et al, 2021;Susiloningtyas et al, 2018). Indonesia is also included in the corals triangle area, often referred to as the Amazon of oceans, because it has various types of coral reefs, around 69% of the species worldwide (Allen and Erdmann, 2013;Asian Development Bank, 2014;NOAA, 2015;Seascapes Working Group CTI-CFF, 2015).…”