Abstract

Purpose — This research aims to examine the effect of relational capital to supply chain integration and supply chain responsiveness. Design/methodology/approach — This research uses explanatory research with a quantitative approach. The object of this research was in four districts of East Java at Nganjuk, Kediri, Malang, and Probolinggo which are the centers of onion production that have similar environmental conditions. The sampling method in this research used multistage proportional random sampling with 200 respondents as a sample of this research. Data analysis uses the path analysis method by software SPSS 23. Findings — The results show that the relational capital has a positive and not significant effect on the supply chain integration and relational capital has a positive and significant effect on the supply chain responsiveness. Practical Implications — Supply chain responsiveness is greatly affected by the relational capital but not with the supply chain integration. Originality/value —

Highlights

  • Chains are important activities in various industrial sectors including in the agricultural sector that carry out the distribution of supply of goods or services from the place of origin to the place of buyers or customers (Assauri, 2011: 280)

  • The hypothesis proposed in this research are as follows: H1 : Relational Capital has an effect on Supply Chain Integration

  • H2 : Relational Capital has an effect on Supply Chain Responsiveness

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Summary

Introduction

Chains are important activities in various industrial sectors including in the agricultural sector that carry out the distribution of supply of goods or services from the place of origin to the place of buyers or customers (Assauri, 2011: 280). Woods (2004) states that the goal of developing supply chain management in developing countries is to build the capacity of local producers so that they are able to produce products that meet the needs of the domestic and export markets. Another goal is to help farmers in developing countries to take advantage from growth opportunities in world food consumption needs. The results of research conducted by Rasoki et al (2016) showed that the supply chain system that occurred in the marketing of onions is not efficient For this reason, it is necessary to implement supply chains that are well integrated so that the distribution system can run more effectively and efficiently

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