The Causality Model of Maize Farmers’ Income: Integrating Social Capital, Supply Chain, and Competitive Advantage

Ikawati Karim, Eliana Wulandari, Ariady Arsal, Nur Fitriayu Mandasari


Social capital structure, effective supply chain, and competitive advantage have been expected to increase maize farmers’ income. Maize, as a main income, has not been able to prosper farmers yet. Structural Equation Modelling was applied to analyze the effectiveness of social capital, supply chain, and competitive advantage on the maize farmers’ income. This study was conducted with 120 maize farmers as samples in one of Indonesia's maize production centers. Three indicators measure each variable. Social capital indicators are trust, social network, and norm; supply chain is the flow of goods, flow of information, and flow of capital; the competitive advantage is cost leadership, product differentiation, and focus.  Furthermore, the indicators of farmers’ income are land area, production, and labor. The study revealed that social capital did not directly impact maize farmers' income by the test variables of social capital, supply chain, and competitive advantage. In this case, in increasing maize farmers’ income, social capital needs to be supported by supply chain and competitive advantage as intervening variables. The study further revealed that social capital significantly affected the supply chain and competitive advantage, in which these two variables significantly influenced maize farmers’ income. Moreover, supply chain and competitive advantage have reinforced social capital to increase maize farmers’ income. From the intervening variables, competitive advantage was more vital to reinforce social capital than supply chain in increasing maize farmers’ income.


Social capital; supply chain; competitive advantage; farmers’ income.

Full Text:



Statistics, Statistics in Number, Jeneponto: Central Bureau of Statistics, 2019.

Statistics, Statistics in Number, South Sulawesi: Central Statistics of Indonesia, 2019.

I. Mujahidin, S. Bulkis, A. Nadja, Rahmawaty and Rahmadanih, “Development of Food Security at The Poor Household through Institutional Strenghtening and Social Capital at Jeneponto Regency,†, 2013.

Zekic-Susac, M. Sarlija, N. Has, A. Bilandzic , “Predicting Company Growth Using Logistic Regression and Neural Networks.,†Croation Opartional Research Review, vol. 7, pp. 229-248, 2016.

A. H. Pranoto, R. S. Saputra and J. K. Pudjibudojo, “Social Capital and Firm Performance:Evident for Indonesia Small Business,†International Journal of Economics and Financial Issues, 2016.

A. T. Ferdinand, Sustainable Competitive Advantage: An Exploration of Conceptual Model, Semarang: Universitas Diponegoro, 2000.

Sugiyono, Non-Parametric Statistics for Research, Bandung: Alfabeta, 2003.

U. Sekaran and E. Bougi, Research Methods for Business: A Skill Building Approach, New York: Jhon Wiley and Sons Inc. United States, 2003.

A. R. Montoeli, T. Molulela and M. Brian, “Institutional Factors Influencing Diary Farmers Participation in Formal and Informal Milk Markets in Maseru Urban, Lesotho, South Africa,†Journal of Agriculture Extension, vol. 24, no. 2, 2020.

A. S. Supriyanto, S. P. Herianto, Wastutiningsih and D. W. Untari, “Social Capital for Farmers at The Beach Sand Land Community, Panjatan District, Kulon Progo,†National Proceeding Conference, pp. 604-609, 2011.

Y. Saifuddin, “Peer Review: Correlation of Social Capital and Poverty Farmers in Aceh,†Huminities and Social Science Reviews, GIAP Journals, vol. 8, no. 1, p. 2020.

F. M. Alcazar, M. R. Martinez and G. S. Gardey, “The Performance in Multidisciplinary Research Groups: Does Social Capital Matter?†SAGE Journals: International Review of Administrative Sciences. 2020.

R. Musavengne and D. M. Simaele, “Community-Based Natural Resource Management: The Role of Social Capital in Collaboration Environmental Management:The Role of Social Capital in Collaboration Environmental Management of Tribal Resources in Kwazulu-Natal, South Africa,†Journal of Southen Africa , vol. 33, no. 6, 2016.

A. Arsal, I. Karim, R. F. Y. Rusman and Akhsan, “How Important Competitive Advantage is For Maize Grain Potential Market,†IOP Conference Series: Earth and Environmental Science, 2019.

M. Dai and L. Liu, “Risk Assesment of Agricultural Supermarket Supply Chain in Big Data Environment,†Journal of Sustainable Computing: Informatics and Systems. 2020.

A. Gallo, R. Accorsi, G. Baruffaldi and R. Manzini, “Designing Sustainable Cold Chain for Long Range Food Distribution:Energy-effective Corridors on The Silk Road Belt,†Sustainability, vol. 9, no. 11, p. 2044, 2017.

M. Musavi and A. Bozorgi-Amiri, “A Multi-objective Sustainable Hub Location-Scheduling Problem for Perishable Food Supply Chain,†Computers & Industrial Engineering, vol. 133, pp. 766-778, 2017.

Y. C. Tsao, “Designing a Supply Chain Network for Deteriorating Inventory Under Preservation Effort and Trade Credits,†International Journal of Production Research, vol. 54, no. 13, pp. 3837-3851, 2016.

R. Accorsi, S. Cholette, R. Manzini and A. Tufano, “A Hierarchical Data Architecture for Sustainable Food Supply Chain Management and Planning,†Journal of Cleaner Production, vol. 203, pp. 1039-1054, 2018.

M. Nematollahi and A. Tajbakhsh, “Past,Present, and Prospective Themes of Sustainable Agricultural Supply Chains: A Content Analysis,†Journal of Cleaner Production, 2019.

E. Mungai and M. Ogot, “Generic Strategies and Firm Performance: An Investigation of Informal Sector Micro-enterprises in Kenya,†International Journal of Business Management, vol. 12, p. 148, 2017.

M. V. Bergen, M. Steemen, M. Reindrop and L. Gelsomina, “Supply Chain Finance Scheme in The Procurement of Agricultural Products,†Journal of Purchasing and Supply Management, 2018.

M. S. Wibawa, “Supply Chain Management of Mushroom at Denpasar City,†Agribusiness Department, Universitas Udayana, Bali, 2015.

M. Lezoche, H. Panetto, J. Kacprzyk, J. E. Hernandez and M. M. E. Alemany-Diaz, “Agri-food 4.0: A Survey the Supply Chains and Technologies for The Future Agriculture,†Computer in Industry, vol. 117, p. 103187, 2020.

J. Fagerbeg and M. Scholec, “Capabilities, Economic, Development, Sustainability,†Cambridge Journal of Economics, vol. 41, no. 3, 2017.

J. Falciola, M. Jansen and V. Rollo, “Defining Firm Competitiveness; A Multidimensional Framework,†World Development, vol. 129, p. 104857, 2020.



  • There are currently no refbacks.

Published by INSIGHT - Indonesian Society for Knowledge and Human Development