The influence of supply chain management to sugarcane farming performance in Madura

Abstract

This research aimed to analyze whether there is influence between the practice of supply chain management and farming activity on the sugarcane farming performance. Variable of supply chain management was measured using three indicators, namely supplier partnership, customer relationship, and information sharing. Variable of farming activity was measured with two indicators, namely the increasing of farming management and the mastering of planting technology. Meanwhile, the variable of farming performance was measured using two indicators, namely financial performance and operational performance. Data were collected using questionnaires. There were 41 farmers that are partners of PT. Perkebunan Nusantara X contributed as respondents in this study. The research location was in Madura, East Java. Method of analysis used in this study was structural equation modeling (SEM) using partial least square (PLS). The results show that there was a significant relationship between the practice of supply chain management and farming performance, and there was a significant relationship between farming activity and farming performance.