An Interpretive Structural Modelling (ISM) Approach for Institutional Analysis of Gadung Yam (Dioscorea Hispida Dennst) Chips Supply Chain in SMEs Tulungagung, East Java, Indonesia

Abstract

UKM Indah Lestari is one of SMEs in Tulungagung, East Java, which produces gadung yam chips. Having good institutional structure is one of the supporting success of this SMEs development. All this time, this SMEs has no inter-party relationship and institutional structure in integrated supply chain. The aim of this study were to determine the institutional structure of the supply chain and to show the relationship between elements on the institutional supply chain. Interpretive Structural Modeling (ISM) approach was a term used to analysis it. The results indicated that the institutional of gadung yam chips consists of suppliers, SMEs, retailers and government who are directly involved in the supply chain of gadung yam chips. The relationship among agents in the institutional structure of gadung yam chips supply chains has influence and linkage with each other that will move the business progress of that SMEs. Relation to the needs element and all sub-elements are key elements. In constraint element, sub-element consistency of quality and quantity of gadung yam tubers as well as lack of capital become sub-key elements. In the objective element, the availability of guaranteed raw materials becomes the key sub-element. It shows that government becomes the key sub-elements. Meanwhile within the element of improvement which is possible for all sub-elements has key sub-element.