Supply chain integration on Robusta coffee performance: a case of smallholder agribusinesses in Malang Regency, East Java, Indonesia

Abstract

This study investigated the influence of supply chain integration on the performance of the Robusta coffee supply chain in Malang Regency, East Java, Indonesia. With the coffee industry being an important component of the region's economy, understanding its supply chain dynamics is crucial for enhancing competitiveness and sustainability. The research employed a quantitative approach, utilising Structural Equation Modeling-Partial Least Squares (SEM-PLS) to analyse data collected through surveys and interviews with 200 respondents in January - March 2024. The study focused on supply chain integration: integration with suppliers, integration with consumers, and intra-organisational integration. Performance outcomes were measured in terms of financial performance and operational performance. The findings reveal that supply chain integration significantly influences financial and operational performance within the Robusta coffee supply chain. Specifically, integration fosters streamlined processes, workflow optimisation, and resource utilisation efficiency. Integration supports quality management initiatives, ensuring consistency, reliability, and compliance with industry standards.