The role of smallholder human resources on the performance of the supply chain of cocoa beans in Central Sulawesi Indonesia: A structural equation modeling analysi

Abstract

This study aimed to analyze the effects of smallholder human resource skills in cocoa farming on the cocoa bean supply chain performance in Indonesia, and uses structural equation modeling (SEM) for this purpose. Data were collected from 320 farms in Sigi Regency and Parigi Moutong Regency. The results show that smallholder resource skills directly and indirectly have significant and positive effects on agility, flexibility, and economic performance in the cocoa bean supply chain. Thus, collaboration between universities, government, and the private sector is needed to support smallholders in developing education, skills, and capabilities. Increasing education and skills would enable smallholders to adopt technologies recommended by universities, government and the private sector, so that they could carry out efficient production with a high output of high quality cocoa beans. High output and high quality cocoa beans would provide a large economic benefit to the smallholders.

Keywords

• cocoa farming
• smallholder human resources
• supply chain of cocoa beans