SOCIAL INTERACTION IN RICE PRICE TRANSMISSION: A RETRODUCTIVE APPROACH

• Main Author: Widyarini, Maria
• Format: Dissertations
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/86880
• Institution: Institut Teknologi Bandung

This research is intended to study the social interaction in rice price transmission using retroductive approach. It has three objectives. First, this research aims to identify and explore factors, which determine and affect actors’ social interaction during price transmission. This research use CMO as contextual approach to assist in exploring social interaction among rice actors; and to apprehend price transmission among actors and what constitutes the interrelation in the existing conditions through exploratory study. Second, it aims to analyze and to understand actors’ social interactions through the lens of structuration theory. The interrelation between conceptual theories and the existing conditions is understood by building proposition formulation. Third, this research provides evidence to understand social interactions and actors’ behaviors during price transmission. Deriving from a systematic literature review, this research addresses knowledge gaps of price transmission phenomena and factors explaining price transmission. The phenomena of actors in Indonesia’s rice value chain showed that farmers received less benefits compared to traders, even though it has been managed by the government’s regulation. The empirical observations indicate that actors’ role, which built a social interaction, has exhibited a level of market power and together with the government regulation/intervention may explain price transmission phenomena. This research applies retroduction approach to: (1) support the phenomenon identification, suggest what mechanism may be at play and provide links with previous research and literature, and provide event data to be explained and explored to find causal relations among the data, identify the mechanism, and offer the data collected as evidence; (2) confirm and determine whether the propositions fit the underlying the phenomena of mechanism, regularities and patterns, and to what extent. Thus, the sequence stages follow theory testing logic in which stages should reveal a new part of the theoretical argument made. In the first stage (initial stage), the phenomena occurs on this phase is examined independently; then the results from the first stage become an input towards making a comparative analysis of the coherent body of all cases studied to confirm the proposition build in this stage. The unit analysis of this research is actors’ social interactions on rice value chains. The case selection is based on a criterion that is used to select the case and how many cases should be studied. Applying case study approach, a multiple (four) case designs were implemented. The selection criterion of region was built on a complete number of different rice actors in region which make it possible to trace price transmission process among rice actors. The region chosen are parts of West Java national rice producers. Thus, Karawang, Purwakarta, Subang, and Cianjur districts were selected as research sites. Informants fit the research particular phenomena to get broad understanding of rice actors’ social interactions. The selection of informants is based on their knowledge and experience of the particular phenomena. A case study protocol has been applied to increase reliability along with a data collection, the use of qualitative study and a two-step analysis procedure. This research reveals that the price transmission among actor is guided by a social interaction which is varied among actors and is dependent on the established social norms, power, and network as well. This multiple case studies showed that information at the central market was obtained through personal contacts with other wholesalers, traders, farmers, or through messengers, while the role of public sources, such as the newspaper, radio or public services is marginal. The negotiations show that value claiming has been influenced by regular relationships, which are shaped by social interaction, power and norms of social networks among the actors. There are three reasons why the actors participate in social interactions: (1) to obtain information about the up-to-date condition, quantity needs, and offered price of the rice crops in a more confident transaction; (2) to become involved from the beginning to create a sense of belonging and sense of responsibility; and (3) to achieve their targeted profit in their own transactions. The study shows that daily social interactions among the actors are followed by social actions. The AST understand that actors’ interactions can be viewed from the interaction of three concepts of structuration (structures, systems, and structuration) with three dimensions: domination, signification, and legitimation. Based on proposition testing, findings across four case studies are: (1) there is a mutual dependence of human actions (actor) and social structure (social norm) during interactions; (2) actors’ role, norm, power and network shape the social interaction and reshape human actions in a looping pattern; (3) domination structure across actors in rice value chain was dominated by the social interaction during price transmission; (4) communication was used to exchange information but not to determine pricing or negotiation by actors with low resources. The significant contribution of this research is its focus on actor as a defining factor in the analysis of price transmission through social interaction which has been less discussed in previous studies.