The effect of collaborative communication, power dependency, and price satisfaction on trust and loyalty of individual farmers to dairy cooperative case study dairy supply chain in Boyolali

Abstract

The study aims to investigate the effect of collaborative communication, power dependency, and price satisfaction on trust of individual farmers to the dairy KUD (a dairy cooperative). This study also aims to investigate the effect of trust on the loyalty of individual farmers to the dairy cooperative. The investigation will represented by the 165 individual farmers and several dairies cooperative in 6 districts in Boyolali, Central Java, Indonesia. The finding of this study indicates that the collaborative communication and price satisfaction have a significant positive effect on individual dairy farmer's trust of the competence-goodwill and producer's contractual of dairy cooperative; whereas, the imbalance power-dependency have a negative significant effect on the competence-goodwill and producer's contractual of dairy cooperative. The finding of this study also indicates that competence-goodwill and contractual trust of individual farmers have a significant effect on the level of their loyalty to the particular dairy cooperative.