Measuring the performance of poultry business through effective supply chain management skills

摘要

Poultry industry is a key sector in the Indonesian economy, producing and supplying sixty five percent of all animal protein and with ten percent employment share of labor in national economy. Over the last thirty years, there has been an increase in production of agro food globally. Economists agree that demand of agro product has increased due to population growth, product consumption and the increased income. In Indonesia, poultry production has not been able to meet the demand which makes it difficult to supply produced chicken to remote areas. Moreover, in Indonesia, the supply chain network of poultry production does not meet the demand of this growing sector Hence, a well-established supply chain system is required for this sector. Large production companies should create a proper supply chain system by integrating poultry product modularity Such an interaction between companies having SCM skills and poultry suppliers will enhance poultry business performance. This study employed a cross sectional research mode and designed a survey to collect data from poultry production units in Indonesia. Results reveal that due to suppliers’ involvement and integrating product modularity make a significant positive effect on poultry business performance. In addition, it was also revealed that SCM skills were moderating positively in poultry business performance which in turn helped poultry producer to develop a better supply chain network. It is recommended that government should make appropriate polices to develop better supply chain networks for the economic growth of country.