Contract farming supply chain relationship and business performance within Malaysian poultry industry

Agriculture is one of the key sectors for international trade that supply food to the world population. Further improvement would be strengthening the contract farming system at the
operation level and improving the profitability of producers. Measuring business performance
provides the required information to the management for effective decision- making and is used by businesses to evaluate progress against objectives in an assessable coordination. This study highlighted the impact of Supplier Involvement and Customer Involvement, later termed as Integrator Involvement (II) and Grower Involvement (GI) in contract broiler production. The research then focused on determining the relationship between integrator involvements and grower involvements moderated by managerial skill towards business performance. This would enable improved contribution of the broiler - farming system in the country and boost profit. The data for this research was collected through mail survey questionnaires from 285 contract broiler producers in Malaysia. The content was validated by experts from the Department of
Veterinary Services of Malaysia, and analyzed using the SPSS Version 19 (Statistical Package
for Social Science) software. Then correlation and hierarchical regression analysis were done to gauge the preliminary results and relationship between the variables. The research also identified the theory and practice gaps applicable to broiler - contract farming and provided moderating - effect explanations linking those gaps. The result thus derived, suggests that in order for
businesses to capitalize and benefit from the working skills, companies need to train their staff in technical and administrative fields. Hence, this study empirically demonstrated its importance and urged the firms to focus on it when applying managerial skills. Staff equipped with better innovative knowledge and managerial skills would be able to deliver operational efficiency and affirm that enhanced managerial skills would be able to strengthen the companies’ ability to augment business performance