Strengthening Supply Chain Management Through Human Capital Development in Isolated Community-Based Fisheries

¹ The United Graduate School of Agricultural Sciences, Ehime University, 3-5-7 Tarumi, Matsuyama, Ehime, 790-8566, Japan
² Department of Agricultural Industrial Technology, Faculty of Agriculture, Universitas Muhammadiyah Jember, Jl. Karimata No. 49, Jember, East Java, 68121, Indonesia

^* Corresponding author: fitrianadina@unmuhjember.ac.id

Abstract

This article examines the role of human capital development in supply chain management on Bawean Island, an isolated island in Indonesia. This study uses a soft system methodology with purposive sampling, involving in-depth interviews with 15 key informants as members of the pesantren community engaged in fishery-related socio-economic activities, including small-scale fishers (two), large fishers (with labor) (one), collectors (two), local traders (two), fishery product processors (SMEs) (three), and government representatives (four). Using soft system methodology, the study elaborates on human capital development in the fishery industry, focusing on how skills, labor quality, and collaboration influence the downstreaming of fishery products. The results indicate that logistics risks, such as limited transportation access, unreliable cold chains, and market connectivity, are detrimental to business performance. Human capital quality, particularly in terms of technical skills and management capacity, plays a critical role in mitigating these risks. Inclusive community participation, especially through pesantren-based education and training— plays a vital role in enhancing resilience within the fishery supply chain. An integrated framework for strengthening supply chain risk management is proposed, aligning with Sustainable Development Goals (SDGs). This study highlights the potential of human capital development as a key driver for economic growth and resilience in isolated fishery-based communities.