Effect of partnership between producer and distributor toward partnership satisfaction (Case: Hydroponic marketing in Depok, West Java)

Abstract

A small farmer needs more effort to sell their crop to consumers, they needed distributor to market their products, this is called a partnership relationship which is essentially a collaborative process. The farmers act as suppliers needed by partner companies. Meanwhile, the distributor helps in marketing products to the consumers. The case study in this research is a hydroponic business in Depok which is still difficult to reach its consumer market. The purpose of this study was to determine an effect satisfaction of partnership between hydroponic farmer and distributor in Depok. This research was conducted through descriptive research with a quantitative approach. Data collected was carried out by interviews and questionnaires, The data analysis tool uses a Likert Scale and the data processing was carried out using Structural Equation Modelling – Partial Least Square (SEM-PLS) to determine effect of 3 independent variables: partnership sustainability (X1); collaboration sustainability (X2); commitment sustainability (X3), to 1 dependent variable: partnership satisfaction (Y). Data collection in this study was carried using nonprobability sampling technique with the saturated sample/census method because each element of the population is relatively small, due number of samples was 21 respondents who works as an employee in the company. Results showed all independent variable had a significant effect to dependent variable. This result can be explained that both partnership and collaboration allow farmer to sell harvest product more easily with a good price, while also supplier could achieve supply demand in market.