Stakeholder Perspectives on Supply Chain Risks: The Case of Indonesian Palm Oil Industry in West Papua

Abstract

Stakeholder perspectives on supply chain risks (SCRs) play a crucial role in managing risks, achieving goals, and determining performance of an organization. Herein, the role of stakeholders and the complex interrelationships between stakeholders are important factors influencing the supply chain, and, besides, failure to manage SCRs can result in significant losses for the organization. In West Papua, study related to stakeholder perspectives on the risks in palm oil SCs is still limited. Accordingly, to fill this gap, this paper aims to identify SCRs from the perspectives of key stakeholder of the Indonesian palm oil industry in West Papua. This study employs qualitative research methods. Key risks in the palm oil supply chain (SC) were identified from semi-structured interviews with 64 key stakeholders across 25 different stakeholder groups, using NVIVO software for thematic analysis. The results show that the palm oil SC in West Papua has five tiers and five distribution channels of material, information, and financial flows. Public and private stakeholders identified in palm oil SCs play crucial roles in determining palm oil operations in West Papua. Herein, there are seven identified groups as key stakeholders with thirty-two major risks in the SC. Smallholder farmers are exposed to most of the risks, followed by plantation companies, local cooperatives, and government agencies. Interestingly, risks in palm oil SCs in West Papua are predominantly caused by conflicts of interest among multiple stakeholders.