Strategic Alliance Model of High-Value Vegetable Agroindustry

Abstract

Vertical cooperation among business entities of high value vegetable supply chain has been studied to design a strategic alliance model of vegetable agroindustry. The study focuses on inter-organizational coordination among farmer, processor and customer of high value vegetable to be sold at premium market, i.e. export and supermarket chain. Decision-making computational models used were Analytical Hierarchy Process (AHP). Independent Preference Evaluation (IPE), and Interpretative Structural Modeling (ISM). Vertical cooperation in existing high value vegetable supply chain was still traditionally coordinated on a short-term basis. The partnership quality ranged between potential to good, with potential conflict caused by unequally distributed risk. The supplier-customer interdependencies were about equal, which gives opportunities to establish a strategic alliance of vegetable agroindustry.