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Institutional analysis of milkfish supply chain using interpretive structural modelling (ISM) (case study of UD. Bunda Foods, Sidoarjo District)

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Published under licence by IOP Publishing Ltd
, , Citation R L R Silalahi et al 2018 IOP Conf. Ser.: Earth Environ. Sci. 131 012031 DOI 10.1088/1755-1315/131/1/012031

1755-1315/131/1/012031

Abstract

UD. Bunda Foods is an SME located in the district of Sidoarjo. UD. Bunda Foods has problems of maintaining its milkfish's quality assurance and developing marketing strategies. Improving those problems enables UD. Bunda Foods to compete with other similar SMEs and to market its product for further expansion of their business. The objectives of this study were to determine the model of the institutional structure of the milkfish supply chain, to determine the elements, the sub-elements, and the relationship among each element. The method used in this research was Interpretive Structural Modeling (ISM), involving 5 experts as respondents consisting of 1 practitioner, 1 academician, and 3 government organisation employees. The results showed that there were two key elements include requirement and goals elements. Based on the Drive Power-Dependence (DP-D) matrix, the key sub-elements of requirement element, consisted of raw material continuity, appropriate marketing strategy, and production capital, were positioned in the Linkage sector quadrant. The DP-D matrix for the key sub-elements of the goal element also showed a similar position. The findings suggested several managerial implications to be carried out by UD. Bunda Foods include establishing good relationships with all involved institutions, obtaining capital assistance, and attending the marketing training provided by the government.

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