• Mojikon Melvin Manuel Faculty of Industrial Management, Universiti Malaysia Pahang Al-Sultan Abdullah, Lebuh Persiaran Tun Khalil Yaakob, 26300 Gambang, Pahang, Malaysia
  • Chia Kuang Lee Faculty of Industrial Management, Universiti Malaysia Pahang Al-Sultan Abdullah, Lebuh Persiaran Tun Khalil Yaakob, 26300 Gambang, Pahang, Malaysia
  • Marián Bujna Faculty of Engineering, Slovak Univ. of Agricultural, Tr. A. Hlinku 2, 94976 Nitra, Slovakia
  • Hai Lee Ooi Edustats Solutions, Kuala Lumpur, Malaysia



Contract issues, Agriculture, DEMATEL


The agriculture sector contributes vastly to a nation’s economy, including Malaysia. Nevertheless, limited research has looked on the contractual issues in agriculture process. The purpose of this study was to explore the contractual issues in the agriculture process and determine the relationship between both variables. The respondents involved seven experts from the agriculture sector in Sabah, Malaysia and a survey questionnaire were used to gather the data. Subsequently, the DEMATEL method was used to create the causal and effect diagram between the contractual issues. The results showed that Delayed Delivery Issues (Issue A) is the most crucial contract issue in agriculture and must be addressed. Furthermore, the most crucial relationship existed between Crucial Contract Issues (Issue A) and Contract Duration (Issue E). These issues should be studied further to improve the agriculture sector.


Abdul-Rahman, H., Chen, W., M.S., M. D., & Munaaim, M. E. C. (2013). Cause, Effect and Reaction for Late-payment and Non- Payment Issues in Malaysian Building Sector. Topclass Journal of Business Management and Innovations, 1(1), 8–20.

Adams, Ј. (2014). Managing Risk: framing your problems. In Boeringer Ingelheim Alumni Seminar, Schloss Gracht 9-11.

Adnan, K. M., Ying, L., Ayoub, Z., Sarker, S. A., Menhas, R., Chen, F., & Yu, M. (2020). Risk management strategies to cope catastrophic risks in agriculture: the case of contract farming, diversification and precautionary savings. Agriculture, 10(8), 351.

Agyemang Badu, E. (2013). Determinants of dividend payout policy of listed financial institutions in Ghana. Research Journal of Finance and Accounting, 4(7), 185-190.

Akram, R., Turan, V., Wahid, A., Ijaz, M., Shahid, M. A., Kaleem, S., ... & Nasim, W. (2018b). Paddy land pollutants and their role in climate change. Environmental pollution of paddy soils, 113-124.

Akram, R., Turan, V., Hammad, H. M., Ahmad, S., Hussain, S., Hasnain, A., ... & Nasim, W. (2018a). Fate of organic and inorganic pollutants in paddy soils. Environmental pollution of paddy soils, 197-214.

Assaf, S.A. and Al-Hejji, S (2006) Causes of Delay in Large Construction Projects. International Journal of Project Management, 24, 349-357.

Das, T. K., & Teng, B.-S. (2000). A resource-based theory of strategic alliances. Journal of Management, 26(1), 31–61.

Dengiz, O., & Baskan, O. (2009). Land quality assessment and sustainable land use in Salt Lake (Tuz Gölü) specially protected area. Environmental Monitoring and Assessment, 148, 233-243.

Economy Planning Unit (2020). Policy objectives and framework, Retrieved from

Gorovaia, N. (2019). Determinants, transactional alignment, and performance outcomes of franchise contract length. International Journal of Retail & Distribution Management, 47, 714‒32.

Haque, T. (2000). Contractual arrangements in land and labour markets in rural India. Indian Journal of Agricultural Economics, 55(3), 233-252.

Hou, J., Wu, L., & Hou, B. (2020). Risk attitude, contract arrangements and enforcement in food safety governance: a China’s agri-food supply chain scenario. International Journal of Environmental Research and Public Health, 17(8), 2733.

Kale, S. S., Panzade, K. P., & Chavan, N. R. (2020). Modern farming methods: An initiative towards increasing the food productivity. Food and Scientific Reports, 1(4), 34.

Inkpen, A. C., & Tsang, E. W. (2007). 10 Learning and strategic alliances. Academy of Management Annals, 1(1), 479-511.

Kaushik, S., & Somvir, R. (2015). DEMATEL: a methodology for research in library and information science. International Journal of Librarianship and Administration, 6(2), 179-185.

Koohafkan, P., & Altieri, M. A. (2010). Globally important agricultural heritage systems: a legacy for the future (pp. 1-47). Rome: Food and Agriculture Organization of the United Nations.

Kumwenda, I., & Madola, M. (2013). The status of contract farming in Malawi. Food, Agriculture, and Natural Resources Policy Analysis Network (FANRPAN).

Lee, C. K., Bujna, M., Abd Jamil, A. H., & Ee, P. T. (2023). A cause and effect of a nonpayment model based on the DEMATEL algorithm. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 15(1)

Lopez-Ridaura, S., Sanders, A., Barba-Escoto, L., Wiegel, J., Mayorga-Cortes, M., Gonzalez-Esquivel, C., Lopez-Ramirez, M. A., Escoto-Masis, R. M., Morales-Galindo, E., & García-Barcena, T. S. (2021). Immediate impact of covid-19 pandemic on farming systems in Central America and Mexico. Agricultural Systems, 192, 103178.

Lowder, S. K., Skoet, J., & Raney, T. (2016). The number, size, and distribution of farms, smallholder farms, and family farms worldwide. World development, 87, 16-29.

Malaysia Department of Statistics (2022). Malaysia GDP from agriculture, Retrieved from

Malaysian Ministry of Economy (2021). Twelfth Malaysia Plan 2021-2025, A Prosperous, Inclusive, Sustainable Malaysia, Retrieved from

Mehrara, M., & Baghbanpour, J. (2016). The contribution of industry and agriculture exports to economic growth: the case of developing countries. World Scientific News, (46), 100-111.

Meemken, E.M. & Bellemare, M.F. (2020) Smallholder farmers and contract farming in developing countries. Proceedings of the National Academy of Sciences USA, 117, 259– 264.

Msuya, E.E., A.C. Isinika, and F.M. Dzanku. (2018). Agricultural Intensification Response to Agricultural Input Subsidies in Tanzania: A Spatial-Temporal and Gender Perspective. In Agriculture, Diversification, and Gender in Rural Africa: Longitudinal Perspectives from Six Countries, ed. A.A. Djurfeldt, F.M. Dzanku, and A.C. Isinika, 2002–2015. Oxford: Oxford University Press.

Ogutu, S.O., Ochieng, D.O. & Qaim, M. (2020) Supermarket contracts and smallholder farmers: implications for income and multidimensional poverty. Food Policy, 95, 101940.

Pultrone, C. (2012). An overview of contract farming: legal issues and challenges. Uniform Law Review-Revue De Droit Uniforme, 17(1-2), 263-289.

Prowse (2012). Effective Negotiation: From Research to Results by Ray Fells, Industrial Relations Journal, 43(1), 85-86.

Rahman, A., Jianchao, L., Adnan, K. M., Islam, M. D. I., Zhao, M., & Sarker, S. A. (2020). How indebted farmers perceive and address financial risk in environmentally degraded areas in Bangladesh. Environmental Science and Pollution Research, 27, 7439-7452.

Rehman, A., Chandio, A. A., Hussain, I., & Jingdong, L. (2019). Fertilizer consumption, water availability and credit distribution: Major factors affecting agricultural productivity in Pakistan. Journal of the Saudi Society of Agricultural Sciences, 18(3), 269-274.

Ruml, A., & Qaim, M. (2020). Effects of marketing contracts and resource-providing contracts in the African small farm sector: Insights from oil palm production in Ghana. World Development, 136, 105110.

Ryall, M. D., & Sampson, R. C. (2009). Formal contracts in the presence of relational enforcement mechanisms: Evidence from technology development projects. Management science, 55(6), 906-925.

Snyder, K. A., Sulle, E., Massay, D. A., Petro, A., Qamara, P., & Brockington, D. (2020). “Modern” farming and the transformation of livelihoods in rural Tanzania. Agriculture and Human Values, 37, 33-46.

Song, W., Zhang, H., Zhao, R., Wu, K., Li, X., Niu, B., & Li, J. (2022). Study on cultivated land quality evaluation from the perspective of farmland ecosystems. Ecological Indicators, 139, 108959.

Sutopo, W., Hisjam, M., & Yuniaristanto. (2013). An agri-food supply chain model to empower farmers for supplying deteriorated product to modern retailer. In IAENG Transactions on Engineering Technologies: Special Issue of the International MultiConference of Engineers and Computer Scientists 2012 (pp. 189-202). Springer Netherlands.

Tauqeer, H. M., Turan, V., Farhad, M., & Iqbal, M. (2022b). Sustainable agriculture and plant production by virtue of biochar in the era of climate change. In Managing plant production under changing environment (pp. 21-42). Singapore: Springer Nature Singapore.

Tauqeer, H. M., Turan, V., & Iqbal, M. (2022). Production of safer vegetables from heavy metals contaminated soils: the current situation, concerns associated with human health and novel management strategies. In Advances in bioremediation and phytoremediation for sustainable soil management: principles, monitoring and remediation (pp. 301-312). Cham: Springer International Publishing.

Yeboah, F. K., & Jayne, T. S. (2020). Africa’s evolving employment trends. In The Transformation of Rural Africa (pp. 27-56). Routledge.




How to Cite

Melvin Manuel, M., Lee, C. K., Bujna, M., & Ooi, H. L. (2024). IDENTIFICATION OF CONTRACTUAL ISSUES IN AGRICULTURE PROCESS: A DEMATEL- BASED MODEL. International Journal of Industrial Management, 18(2), 72–81.



Research Article