THE ROLE OF MULTIDIMENSIONAL PERCEIVED VALUE, TRUST AND COMMITMENT TO ACHIEVE COLLABORATION IN WEST JAVA AGRIBUSINESS

• Main Author: Larasati, Niken
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/86888
• Institution: Institut Teknologi Bandung

Agribusiness sectors makes the second biggest contribution to Indonesian economy. However, some problems still remain in the agribusiness sectors such as farmers’ welfare as a supplier. In respond to that problem, engaging them in the business value chain is a new way to achive both economic and social objective, using a new business concept that known as inclusive business. In inclusive business, collaboration is required to be achieved. Besides, value that perceived should be in dyad and it needs trust and commitment among the buyers and suppliers. But, the result that gained in the preliminary research on farmers and partner in West Java that they find it hard to trust their partner. Thus, the aim of this research is to obtain the trust dimension from farmers and partners and to know the influence of perceived value, trust and commitment on farmers to collaboration with their partner. Hence, mixed method sequential was conducted. First, exploratory study was employed to obtain the dimension of trust and afterwards the instrument was developed. Secondly, quantitative approach through survey-based questionnaire was conducted to Cianjur, West Bandung and Garut farmers. The data was analyzed using Partial Least Square – SEM (PLS SEM). The result showed that farmers could trust their partners as long as they provide clear information, important information and actual proof about the promised result. Then, emotional value was the only factor that has positive effect on trust while functional value and emotional value were the factors that triggered farmers to have commitment to their partner. Trust proven can affecting farmers to have commitment with their partners. Both of trust and commitment were tested to know the effect on collaboration. Only commitment that has positive relationship with collaboration.