Indonesia Conference Directory

Institutional problems experienced by SMEs lead to institutional risks that can affect supply chain institutions. These risks include risk in the variables of the actors, relations and institutions involved. Variable actors have the risk of lack of technical, intellectual and negotiating abilities, and low commitment, communication and responsibility. Relationship variables have a risk level of trust, honesty and a spirit of low progress, frequent conflicts, and limited information between relations. Other institutional variables have the risk of not having a business network and low government cooperation, training and funding. These risks must be handled properly and correctly. The purpose of this study is to identify and assess the institutional risk of supply chains. Risk identification and assessment uses the Fuzzy Failure Mode and Effect Analysis (FFMEA) method. The result of five randomly selected SMEs, the highest risk in the actor variable is the lack of intellectual knowledge and low commitment. The risk priority in the relation variable is the lack of spirit of going forward together. The risk priority for institutional variables is the limited of supporting fund from other institutions.