Research Article

Sustainability Supply Chain Through Collaborative Strategies

Yayat Rahmat Hidayat1*, Yuhanin Zamrodah2 and Siti Wahana3

1Department of Agribusiness, Faculty of Agriculture, University of Swadaya Gunung Jati, Cirebon, Indonesia; 2Department of Agribusiness, Faculty of Agriculture, University of Islam Balitar, Blitar, Indonesia; 3Department of Agribusiness, Faculty of Agriculture, University of Swadaya Gunung Jati, Cirebon, Indonesia.

Received | May 26, 2025; Accepted | Sep 15, 2025; Published | December 27, 2025

*Correspondence | Yayat Rahmat Hidayat, Department of Agribusiness, Faculty of Agriculture, University of Swadaya Gunung Jati, Cirebon, Indonesia; Email: [email protected]

Citation | Hidayat, Y.R., Y. Zamrodah and S. Wahana. 2025. Sustainability supply chain through collaborative strategies. Sarhad Journal of Agriculture, 41(5): 290-299.

DOI | https://dx.doi.org/10.17582/journal.sja/2025/41.5.290.299

Keywords | Information sharing, Trust, Corporate share value, Collaboration, Sustainability, Supply chain.

Copyright: 2025 by the authors. Licensee ResearchersLinks Ltd, England, UK.

This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).

Introduction

Sustainable supply chains remain a critical issue for countries that produce a variety of food products. However, in practice, sustainability has not yet become a major concern for many food product businesses. Indonesia provides a clear example: as a developing and agriculturally driven nation, it produces a wide range of food products. Notably, 90% of Indonesian farmers grow rice as their primary source of income, and rice is the staple food for most of the population (Chandio et al., 2020; Joshi et al., 2023).

In recent years, sustainability in the food sector has become a prominent topic of discussion, particularly in developed countries. Investment in agriculture is widely recognized as essential for ensuring food security, reducing poverty, and promoting economic progress and sustainability. Achieving these goals requires productive agricultural assets and a robust infrastructure base (Jamaludin, et al., 2022; Alehile, 2025).

Supply chain collaboration refers to two or more independent business units forming long-term relationships to jointly plan and coordinate activities within the supply chain to achieve shared objectives (Simatupang & Sridharan, 2005; Sopa & Saenchaiyathon, 2020). Such collaboration can be realized by aligning actions collectively along the supply chain (Tan, et al., 2024).

In the rice commodity sector, supply chain and value-added analyses highlight the importance of sustainable production systems in strengthening food security (Taridala et al., 2021; Sjah et al., 2021; Rosmalah et al., 2025). Efforts to produce sustainable food products must include ecological considerations, such as environmentally friendly cultivation practices. Thus, sustainability and ecology are inherently interconnected (Rukka et al., 2020; Sasmita & Kodir, 2020; Rosmalah et al., 2025).

Collaboration in the food supply chain can be fostered through collaborative performance systems, information sharing, decision synchronization, incentive alignment, and innovative supply chain processes (Simatupang & Sridharan, 2005). In the food sector, the supply chain plays a pivotal role not only in the future of businesses but also in the broader sustainability of the world (Quaralia 2022).

We developed the collaboration theory by incorporating the factor of information sharing. Previous research indicates that effective information sharing can enhance collaboration and performance across all supply chain networks while reducing operational costs for business units throughout the chain (Zhang and Gong, 2021). Moreover, trust among chain members is a critical element in fostering long-term collaboration. When trust increases, all members are more willing to share information that benefits both the community and the sustainability of their businesses.

The concept of the Circular Economy, which integrates economic, social, and environmental interests, serves as a shared commitment across supply chain networks. To achieve this, stakeholders must work together to create shared value that supports business sustainability. This value creation is carried out collaboratively along the chain, involving individuals, groups, and social organizations. The benefits of shared value become evident when each member of the chain can build a comparative advantage, thereby producing sustainable product outputs (Li et al., 2023).

In this study, the creation of shared value is operationalized through the concept of Corporate Shared Value (CSV), recognized as an important factor influencing supply chain collaboration. The significance of CSV lies in the fact that a company’s production processes directly impact communities and the environment. Therefore, the core company must take the lead in initiating social responsibility initiatives, ensuring that these are adopted by all members of the supply chain.

Collaboration is particularly important for the sustainability of food supply chains due to their perishable nature, seasonal cycles, and extensive network structures. Another defining characteristic is that agricultural product trading systems involve numerous business actors dispersed across various locations, particularly in rural areas. Building strong collaboration within the supply chain network can generate competitive advantages, which in turn support the long-term sustainability of the food supply chain. Such sustainability can significantly increase profitability throughout the chain (Georgiadis et al., 2005).

Theoretically, this research contributes to the development of a sustainable food supply chain concept through collaborative network strategies spanning from upstream to downstream. Practically, it offers guidance for formulating sustainable economic development policies that promote collaboration among food business actors while considering economic, social, and environmental dimensions. It also provides valuable literature for food-producing countries to support the design of sustainable development policies for food supply chains. Accordingly, this study aims to examine the contribution of collaborative factors—namely information sharing, trust, and corporate shared value—to the sustainability of Indonesia’s rice supply chain.

The remainder of this paper is organized as follows: a literature review and hypothesis development, materials and methods, results, discussion, conclusions, and recommendations.

Theoretical review

Food supply chain collaboration theory

Collaboration is a critical business strategy, especially for food products, due to the complexity of their supply chains, which involve multiple interdependent networks. Stakeholders such as farmers, producers, and retailers must work closely to ensure products move efficiently to consumers while upholding high standards of safety, quality, and regulatory compliance (Akinbamini et al., 2025).

Supply chain collaboration is defined as two or more companies working together within a supply chain to achieve shared goals (Mentzer et al., 2001; Simatupang & Sridharan, 2005; Buranasiri et al., 2024). Key indicators of successful supply chain collaboration include collaborative planning, collaborative decision-making, and joint problem-solving (Ramanathan and Gunasekaran 2014).

The main dimensions of a collaborative system encompass information sharing, goal alignment, decision synchronization, incentive alignment, resource sharing, effective communication, and joint knowledge creation (Cao & Zhang, 2011; Ramanathan & Gunasekaran, 2014).

Circular Economy and Sustainability

A circular economy (CE) is an economic system designed to eliminate waste by enabling the continuous use of resources. It requires the creation of a closed-loop system in which resources are reused, renewed, reproduced, and recycled. The CE concept is increasingly encouraged as part of business models, spanning production, product delivery, and sustainable consumption patterns (Rosário et al., 2024). CE is not limited to waste management practices such as recycling, reuse, environmentally friendly material conversion, or biotechnology applications (Ghisellini et al., 2016).

In this study, the theories of collaboration and the circular economy form the foundation for ensuring the sustainability of the rice supply chain, a key staple food. Conceptually, a sustainable food supply chain involves managing information, materials, activities, and capital flows along the chain while addressing three objectives: economic, environmental, and social (Beske et al., 2014; Duong et al., 2025). Collaboration, strengthened by information sharing, trust, and Corporate Shared Value (CSV), plays a pivotal role in achieving supply chain sustainability.

Research hypotheses

This study proposes six hypotheses, each grounded in existing theory. Information sharing is a key element in supply chain collaboration. Hidayat et al. (2024) demonstrate that it plays a crucial role in building collaboration within the food supply chain. Accordingly, the first hypothesis is:

Hypothesis 1: Information sharing influences collaboration.

Alongside information sharing, trust is another essential factor in fostering collaboration among food supply chain actors. Previous research has shown that trust can significantly impact collaboration (Salam 2017). Therefore, the second hypothesis is:

Hypothesis 2: Trust affects collaboration.

In practice, the food supply chain involves multiple actors before products reach consumers. It begins with farmers as the primary producers of food ingredients through crop cultivation. These ingredients are then distributed to various institutions for direct consumption or further processing into food products. Processing requires production activities carried out by food processing companies, whose operations inevitably affect both the environment and society. Consequently, companies bear a responsibility to address these impacts (Meulensteen et al., 2016; Hidayat et al., 2024).

Business sustainability depends on the availability of raw materials supplied by reliable partners. Building strong supplier relationships is therefore essential. Companies can achieve this by implementing strategies based on value sharing to maintain consistent and mutually beneficial partnerships. Hidayat et al. (2024) found that Corporate Shared Value (CSV) significantly influences supply chain collaboration with both suppliers and buyers. This leads to the third hypothesis:

Hypothesis 3: Corporate Shared Value influences collaboration.

Given that sustainability is the main focus of this study, the following hypothesis is proposed:

Hypothesis 4: Information sharing affects supply chain sustainability.

Collaboration among actors is also vital for achieving a sustainable food supply chain. It represents a long-term business strategy involving all stages—from the supply of raw materials through processing to the distribution of final products to consumers. This yields the fifth hypothesis:

Hypothesis 5: Collaboration affects supply chain sustainability.

The importance of Corporate Shared Value in relationships with business partners lies in its role in creating and maintaining sustainability. Strong CSV practices enable suppliers and buyers to sustain long-term, mutually beneficial collaborations. Supply chain sustainability is reflected in product quality, efficiency, availability, customer service, and responsiveness (Walker 2015). Thus, the final hypothesis is:

Hypothesis 6: Corporate Shared Value influences supply chain sustainability.

Materials and Methods

Research conceptual framework

The research conceptual framework is presented in the figure below.

 

Sampling and data collection

The research sample was determined purposively by selecting specific research locations. The research location used as a sample is one of the rice production centers in Indonesia, namely Indramayu Regency, West Java Province. Respondents represented actors in the rice supply chain from upstream to downstream, including rice farmers, rice processing factories, and rice traders, both in production centers and in urban markets.

This study employed a quantitative verification method to test hypotheses using data collected from respondents. Questionnaires were distributed to 160 individuals at purposively selected locations, applying a proportional sampling technique.

Data analysis method

The research data were analyzed using the least squares approach within the Structural Equation Modeling (SEM) framework. SEM analysis begins with hypothesis development, model representation, and variable operationalization through instruments, followed by model testing. In SEM-PLS analysis, there are two key stages: the measurement model and the structural model.

The measurement model involves validity and reliability testing to assess the accuracy and consistency of the research instruments. Validity is evaluated using a factor loading threshold of 0.70, while reliability is measured with a Cronbach’s Alpha value of at least 0.70. Previous research indicates that the minimum acceptable threshold for outer loading is 0.70, and for reliability, it is 0.60 (Hair et al., 2017; Yusuf et al., 2024).

The structural model focuses on hypothesis testing and assessing the significance of relationships between variables. The level of significance is determined by examining the path coefficient (inner model value), while the strength of these relationships is assessed using the R-Square value.

Results

Model measurement evaluation

All research instrument items were deemed valid, with average loading factor values exceeding 0.70, and reliable, with average Cronbach’s Alpha values above 0.80.

 

Table 1: Result validity test

Item	Loading factor
CSV 1	0,779
CSV 2	0,871
CSV 3	0,886
CSV 4	0,721
CSV 5	0,740
Collab 1	0,766
Collab 2	0,880
Collab 3	0,876
Collab 4	0,733
Collab 5	0,736
IS 1	0,807
IS 2	0,849
IS 3	0,835
IS 4	0,789
IS 5	0,812
Sustain 1	0,783
Sustain 2	0,853
Sustain 3	0,843
Sustain 4	0,739
Sustain 5	0,777
TR 1	0,703
TR 2	0,849
TR 3	0,842
TR 4	0,741
TR 5	0,701

 

Source: SEM-PLS Data analysis results

 

The validity of the instrument is also indicated by the reliability value stated in Cronbach Alpha with an average value above 0.8.

 

Table 2: Result reliability test

	Cronbach's alpha	Composite Reliability
Information sharing	0,877	0,910
Corporate share value	0,859	0,900
Sustainability	0,860	0,899
Trust	0,827	0,878
Collaboration	0,858	0,899

 

Source: SEM-PLS Data analysis results

 

Structural model evaluation

The structure of the research model is seen in Figure 2 below.

After confirming the validity of the measurement model and research instrument, hypothesis testing was conducted, yielding two possible outcomes: hypothesis accepted or hypothesis rejected. The results of the hypothesis testing are presented in the table below.

 

Table 3: Results of hypothesis testing

	Original sample	Standard deviation	T Statistics	P Values
Information sharing -> supply chain sustainability	0,254	0,074	3,412	0,001
Information sharing -> collaboration	0,184	0,053	3,461	0,001
Corporate share value -> supply chain sustainability	0,224	0,099	2,264	0,024
Corporate share value -> collaboration	0,525	0,082	6,435	0,000
Trust -> supply chain sustainability	0,239	0,096	2,496	0,013
Trust -> collaboration	0,275	0,081	3,382	0,001
Collaboration -> supply chain sustainability	0,265	0,115	2,302	0,022

 

Source: SEM-PLS Data analysis results

 

Table 3 shows that all six hypotheses in this study are supported, as evidenced by the path coefficients, T-statistics, and P-values. These findings indicate that each tested relationship between the variables has a significant and meaningful effect. The detailed results of the hypothesis testing are presented in the table below.

 

Table 4: Results of R-Square testing

	R Square	R Square adjusted
Sustainability	0,916	0,914
Collaboration	0,934	0,932

 

Source: SEM-PLS Data analysis results

Table 4 shows that the collaboration variable is influenced by information sharing, trust, and Corporate Shared Value (CSV) at a rate of 0.934, with the remaining variance explained by other factors not examined in this study. Similarly, the supply chain sustainability variable is influenced by information sharing, collaboration, and CSV at a rate of 0.916, with the remainder attributable to other unexamined factors.

The magnitude of each variable’s influence, as measured using SEM-PLS, is presented in Table 5.

 

Table 5: Results of total effect

	Sustainability	Collaboration
Information sharing	0,302	0,184
Corporate share value	0,363	0,525
Sustainability
Trust	0,312	0,275
Collaboration	0,265

 

Source: SEM-PLS Data analysis results

 

The information sharing variable influences collaboration by 0.184 (18.4%), trust by 0.275 (27.5%), and Corporate Shared Value (CSV) by 0.525 (52.5%). In turn, information sharing, collaboration, and CSV each influence supply chain sustainability by 0.302 (30.2%), 0.265 (26.5%), and 0.636 (63.6%), respectively.

Discussion

Sustainability in the food supply chain is achieved through the continuous availability of products from upstream to downstream, meeting the expectations of all actors and ensuring business continuity. Responsibility for sustainability lies with all parties involved in the chain, ensuring that products consistently reach consumers. Building collaboration through appropriate business strategies is therefore essential.

Collaboration theory explains the determinants of supply chain collaboration, while Circular Economy theory addresses sustainability in the main rice supply chain. A key factor in fostering supply chain collaboration is information sharing (Zhang & Gong, 2021; Palazzo & Vollero, 2021; Bentalha, 2024). Challenges to collaboration and sustainability in the organic rice supply chain often arise at the upstream level, particularly for farmers as the primary actors. Not all rice farmers can adopt environmentally friendly agricultural practices, which are vital for producing healthier food and maintaining ecosystem sustainability (Schipanski et al. 2024).

At the processing stage, rice millers’ business activities are not solely driven by sales and profits; they also bear responsibility for supporting farmers through knowledge and technology transfer, as well as financing. Downstream, the distribution of organic food products often involves plastic packaging, which is prone to bacterial contamination that can compromise product safety.

Information sharing goes beyond the mere exchange of data. It encourages all supply chain actors to collaborate in planning, execution, and value chain creation. The quality of information sharing depends on factors such as timeliness, accuracy, reliability, sufficiency, and credibility (Zhong et al. 2020).

Another factor driving actors in the organic rice supply chain is trust. Trust stems from a strong belief in the integrity, consistency, and responsibility of reliable partners (Morgan and Hunt 1994). In the research area, trust among organic rice actors has developed over long-standing business relationships and is reinforced through frequent communication for business purposes.

Corporate Shared Value (CSV) is a relatively new concept in the business world that has been widely adopted in developed countries, particularly in food-producing nations. CSV is implemented to achieve production goals, enhance value chains, and foster cluster creation, with the expectation of generating both social and organizational benefits (Beschorner, 2013; Hidayat et al., 2024). In this study, value sharing is carried out by a rice milling company with farmers who supply raw materials, as well as with organic rice retailers. The milling company’s value-sharing initiatives for farmers include facilitating farm credit, providing extension services and farmer group assistance, and supporting activities aimed at enhancing farmers’ capacity and transferring agricultural technology and innovation. These practices increase farmers’ motivation to cooperate as suppliers of raw rice to meet the milling factory’s needs.

Large-scale rice milling factories generally demonstrate strong social and environmental awareness. Social awareness is reflected in business practices that consider community interests, while environmental awareness is shown through efforts to maintain environmental health, including managing waste to prevent disruption to community life and avoid environmental pollution. One of the efforts to overcome pollution is carried out through collaborative efforts from industry, government and stakeholders, especially for the benefit of future generations. (Singh et al., 2023).

This study also found that collaboration among supply chain actors significantly influences the sustainability of the organic rice supply chain in Indonesia’s production centers. Sustainability can be achieved in practice because each actor is able to maintain their business activities: farmers, as suppliers, are assured of purchase agreements from milling factories; milling factories maintain production continuity through reliable raw material supply from retailers; and retailers, in turn, can market organic rice products to consumers.

The performance of key actors in the organic rice supply chain is driven by collaboration, which is shaped by information sharing, trust, and Corporate Shared Value. Such collaboration plays a vital role in ensuring the long-term sustainability of the organic rice supply chain in producing countries like Indonesia.

Conclusions

This study concludes that effective collaboration strategies for sustaining the food supply chain include encouraging actors to share information, build trust, and promote shared values among food product industries and their business partners—both suppliers and buyers (distributors, agents, and retailers). Based on the data analysis, the findings confirm that sharing company values exerts the greatest influence on supply chain collaboration. In addition to significantly impacting collaboration, shared company values also have a strong effect on sustainability.

This research applies Collaboration Theory and the Circular Economy framework to highlight the importance of collaboration for food supply chain sustainability through strategies such as value sharing among companies, information sharing, and trust among supply chain actors. Both theoretical perspectives can be further developed in food supply chain research, particularly in developing countries like Indonesia, which is a major producer of food products.

Recommendations

The study has two main limitations. First, it does not assess the level of sustainability at the end-consumer stage, focusing only on the retail trader level. Second, the trust variable was not tested in relation to supply chain sustainability. Consequently, the findings cannot yet be considered a comprehensive strategy for collaboration and sustainability in the food supply chain. To strengthen future research in supply chain management, additional variables should be examined to enrich the understanding of sustainable food supply chain practices.

Acknowledgements

The involvement of many parties was a key factor in the success of this research. The researchers extend their deepest appreciation and gratitude to the three main actors in the organic rice sector at the research location: the heads and members of farmer groups, the rice milling unit, and the retail traders. Sincere thanks are also given to the agricultural and trade departments for providing research data and valuable input, which greatly contributed to the smooth progress of the study. Finally, the researchers express their heartfelt thanks to the University of Swadaya Gunung Jati for funding support, which made it possible to carry out this research and bring it to successful publication.

Novelty Statement

Sharing accurate information, fostering trust among actors, and promoting shared values led by core companies are effective strategies for building collaboration, ultimately contributing to the creation of a sustainable food supply chain.

Authors’ Contribution

Yayat Rahmat Hidayat: Prepared the research materials and wrote the introduction.

Yuhanin Zamrodah: Corrected the literature review and research methodology.

Siti Wahana: Wrote the results and discussion and drafted the conclusions.

Generative AI or AI assisted technology statement

The author(s) declare that no genrative AI was used in the creation of this manuscript.

Conflict of interest

There is no conflict of interest among the authors involved in writing this article.

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