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Network Structure, Power Difference and Alliance Stability in Sustainable Supply Chain Management: A case in Agri-Food Industry
Ina Agustini Murwani, Tirta Nugraha Mursitama, Asnan Furinto, Sri Bramantoro Abdinagoro

Last modified: 2021-06-12


With the dependency of several commodities in developing countries on small-holder farmers has created the complexity in maintaining the stability of the alliance between focal companies with their suppliers.  The inclusion of small-holder farmers has forced agri-food companies to pay attention to sustainability issues such as poverty and environment to keep all actors motivated in growing and supplying the commodities. This study explores the effect of supplier network structure on alliance stability and the mediating effect of power differences on alliance stability. The respondents were the focal companies that represented all actors in supply chain of coffee, cocoa and palm oil all over Indonesia. Using SEM PLS with reflective formative model as the analytical tools, the study finds that network structure of suppliers together and power difference could affect the alliance stability directly.


network structure, power difference, sustainable supply chain management, alliance stability