Application of Interpretative Structural Modeling for RuralPost-Harvest Enterprise Design on Seafood Supply Chain

Mohammad Nadjikh

Abstract


This action research has the initiative to design a business model for rural post-harvest enterprises to overcome the problem of the supply chain for keeping the freshness of product and cost reduction. The business process should have an impact on increasing rural employment, fishermen income, and community prosperity. This research aims to design Miniplant as a social enterprise in a rural area, which combines business and public interests. Interpretative Structural Modeling technique (Saxena, 1992) based on expert survey and field observation was applied. It was found that major constraints facing Miniplant establishment are the business competition, seasonal raw material supply, and lack of handling knowledge and quality control skills of rural fishermen. The main development activity on Miniplant is looking for reliable local partners and skillful rural workforce. Through Miniplant business process, basic changes become possible including assurance for production continuity, seafood quality improvement, and availability of microcredit for fishermen. It is recommended to train factory workers on good manufacturing practices, especially for food safety purposes. A conceptual model has been established for sustainable supply and value chain management in the agro-industrial network that has been successfully practiced by KML Food Company by having 62 Miniplants all over Indonesia. In conclusion, about 90% of miniplant expenditures disbursed for raw material procurement directly delivered to fishermen, undoubtedly Miniplant model is justified in elevating rural prosperity since crab meat is high-value export commodities.

Aus. Aca. Acc & Fin. Rev Vol 5(1), Jan 2019, P 33-40

Keywords


Miniplant Model; Action Research; Interpretative Structural Modeling; Seafood Business; Supply Chain; Social Enterprises

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