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First, the purpose of this paper is to develop some policies as an alternative scenario to increase the performance of the Indonesian dairy milk supply chain so it can fulfil the target of the government. Second, this study aims to find the best alternative scenario based on the performance resulted from the simulation.

The paper develops a system dynamics-based model by using six approaches, i.e. “population and consumption of dairy milk”, “national milk production”, “dairy cattle feed”, “dairy cattle population”, “profit gained by the dairy farmer”, and “government policy”.

There is no best scenario; however, the combined scenario can give the better condition to achieve the targets set by the government.

The limitations of this study include: the relationship between the levels of welfare of farmers and the desire being a dairy farmer is not modelled; the quality of milk is only determined by the content of fat and protein in one litre of milk, and the level of milk consumption per capita increases naturally without any intervention or policy from the government.

This study provides essential insights into the context of implementing the policies in the Indonesian dairy supply chain.

The research revealed that good policies scenario could be built after simulating and analysing the effect of each scenario on the performance of a dairy supply chain carefully.

This study does not test one policy in isolation. It simultaneously tests various combinations of policy that related to dairy cattle import, operational assistance for dairy cooperative and dairy farmer that may help maximise the performance of the Indonesian dairy milk supply chain.

The purpose of this paper is to measure and evaluate the relationship between collaborative communication, power dependence, price satisfaction, trust, supplier loyalty, and business performance.

Data used in this study were primary data which were collected through personal interviews and closed questionnaires using a five-point Likert scale ranging from 1 to 5. The sample consisted of 170 individual dairy farmer and several dairy cooperatives, which were located in Central Java Province (Boyolali and Semarang Districts) and West Java Province (West Bandung District). The study used partial least squares with the aid of the SmartPLS software program to analyze the hypothesis.

The results of hypothesis testing indicate that collaborative communication and price satisfaction had a significant positive effect on trust for Central Java and West Java Province. Meanwhile, power dependence had a significant negative effect on trust only for West Java Province. Trust had a significant positive effect on supplier loyalty for both of the two provinces. Significant positive effect of supplier loyalty on business performance was supported in Central Java Province, whereas in West Java Province, supplier loyalty had a positive but not significant effect on business performance.

The limitation of this study is related to the number of samples, the type of scale used to measure a business performance, and the focus that is only on the relationship between the fargmers and cooperative to improve the performance of cooperative without considering the role of management. So, the future research may replicate this study in another region or in the other contexts of agribusiness sector that usually depends on farmer as a producer of the raw material. It may also enhance the measurement of business performance of dairy cooperative by using a direct measure of financial performance and non-financial performance and broaden the scope of research into the role of management of dairy cooperative.

It is recommended that managers of dairy cooperatives always involve the farmers when making marketing decisions especially concerning prices, products, market, and promotion. As organizational stakeholders, their involvement is vital in determining the ability of the dairy to achieve its goals. The other recommendation is the managers of cooperatives must have a clear policy on the price of milk, and this policy should indicate the transparency and accountability. Then, regarding the long-term benefit of dairy cooperative, it is recommended for dairy cooperatives to add the value of the milk so they can access wider markets, which, in turn, will maximize returns to the members. Based on this recommendation, it is better if the dairy cooperative in Indonesia not only serves as a marketing cooperative, but also serves as a farm supply cooperative which may process or formulate the milk into a more valuable product.

The research confirms that individual dairy farmer’s loyalty can benefit the business of dairy cooperative. It may encourage more dairy cooperative to tap the good relationship with the individual dairy farmer at the initial stage of the economic growth of their business. Intensifying competition between dairy cooperatives would potentially bring even better quality and quantity of milk from the loyal dairy farmer.

Although this research used the conceptual model from the previous study, this research will make some improvement. First, it used more indicators to measure each dimension of the construct, and the investigation was slightly more complex and broader since the object of the research was represented by two regions, namely, Central Java Province and West Java Province.

The purpose of this study is twofold: to examine the effect of information sharing and contract on increasing the trust level in the relationship between the batik small- and medium-size enterprises (SMEs) and supplier and to examine the trust on performance of a supply chain related to the procurement of raw cotton fabric (mori).

This research used primary data collected through interviews and closed questionnaires using a five-point Likert scale. The sample included 65 people, including batik SME-owners in Pekalongan, a Central Java city. This research was conducted using partial least square (PLS) through SmartPLS 3.0 software to analyze the hypothesis.

The results of hypothesis testing indicate that trust between owners of SME and their suppliers has a significant positive effect on the performance of supply chain management (SCM). Strong trust between batik SME- owners with their suppliers will be beneficial for both parties. Among other things, trust can reduce unnecessary cost and activity, reduce the waiting time for the arrival of raw material, reduce the number of inventories and increase profit and customer satisfaction. This result has also show that information sharing and informal contract have a significant positive effect on trust between batik SME-owners and their mori suppliers. In this case, information sharing has a higher effect on trust compared to informal contract. Broader information was distributed to the batik SME-owners and their suppliers, resulting in stronger trust between them.

The limitations of this study include the relatively small sample size and data collection method used to determine the effect of trust, the number of the antecedent variables of trust and the type of scale used to measure the performance of the supply chain. Suggestions for future research may include expanding the scope of the data collection to other regions in Indonesia; adopting a dyadic approach and longitudinal research in providing evidence on the effect of trust as a component of an interactive activity along the supply chain; adding other variables that contribute towards increasing the trust between SMEs and their suppliers (such as commitment); and enhancing the performance measurement of SCM by using a direct measure of financial and non-financial performance instead of recording the perception of the batik SME-owners.

As the scale of their business increases, it is better if the batik SMEs can enhance information sharing and informal contract with suppliers to promote the development of trust. In this case, to ensure that batik SMEs will have better information sharing from their supplier, it is better if the batik SME-owners using the criteria of supplier willingness to share detailed information when they select the new supplier. Then, to increase the role of contract on trust, it is better if owner of batik SME learn to understand the written contract processes and procedures as their business scale increases.

The research confirms that information sharing, informal contract and trust between batik SMEs and their suppliers can have a positive effect on the performance of the supply chain. It may encourage more SMEs and suppliers in the batik industry to build better information sharing, informal contract and trust as a bottom line for the economic and non-economic growth of their business.

The conceptual model used in this study is original, built from past research about the relationship between information sharing, informal contract and trust on the performance of the supply chain. Besides, the selection of the sample is also original, which in this case is on the batik SMEs which have informal contracts. This case has still been rarely studied, and the research is therefore highly valuable.

The purpose of this paper is to measure and evaluate the performance of the relationships between farmers, dairy cooperatives and industrial milk processors.

Data used in this study were primary data collected through personal interviews and closed questionnaires with 1–5 Likert scale. The sample consisted of the representative of the management of 12 dairy cooperatives located in Central Java Province, representative of the management of 12 dairy cooperatives located in West Java Province and some farmers who are members of those dairy cooperatives. This study uses balanced supply chain management scorecard for measuring the performance of dairy supply chain, importance-performance analysis (IPA) for identifying the indicators that are most in need of improvement, and strength, weakness, opportunity and threat (SWOT) analysis for formulating strategic planning.

The results of balanced supply chain management scorecard combined with IPA analysis showed that the performance relationship between farmers, dairy cooperatives and industrial milk processors in West Java Province is slightly better than that in Central Java Province. It can be seen from the average value of the score of indicator, the category of each indicator and the category of the performance index of each relationship. The major weakness of the relationship between dairy farmers, cooperatives and industrial milk processors in Central Java Province lies in the different perspective (no perspective is dominant), whereas that in West Java Province is dominated by the perspective of the customer. On the other hand, the major strength of the relationship in Central Java Province is dominated by the perspective of the customer, whereas that in West Java Province is dominated by the perspective of learning and growth.

The limitation of this study is related to the number of the dairy cooperatives as the sample and the type of scale used to measure the performance of the relationships between farmers, dairy cooperatives and individual milk processors. So, the future research may replicate this study by surveying all the dairy cooperatives in Central Java and West Java Provinces. It may also enhance the measurement of the performance of the relationships by using a direct measure of each indicator in each perspective, rather than recording the management of dairy cooperative perceptions.

This research provides essential insights for the management of dairy cooperative in the context of strategic planning development. The research reveals that there is a different strategic planning for improving the performance of the relationship between dairy farmers, cooperatives and industrial milk processors in each province. It depends on the major weakness and strength of the relationships, and also, opportunity and threat faced by the dairy industry. One important thing, the management of dairy cooperative in both provinces should have strategic planning related to the use of machine milking by farmers to improve the milk quality.

The research revealed that strategic planning could be built after analyzing the internal and external conditions carefully. It may encourage more dairy cooperatives to measure and analyze the internal and external conditions at the bottom of strategic planning of their business.

Although this research only used the balanced supply chain management scorecard and IPA analysis for measuring the performance, and SWOT analysis in formulating the strategic planning for improving the current performance, it will make a difference. First, instead of measuring the performance of dairy cooperatives, this research measured the performance of the relationships between dairy farmers, cooperatives and industrial milk processors. This way, the dairy cooperatives were only sources of data collection. Second, the investigation was quite complicated since the objects of the research were represented by the relationships between farmers, dairy cooperatives and industrial milk processors in Central Java Province and West Java Province.