Small farmers and sustainability: Institutional barriers to investment and innovation in the Malaysian palm oil industry in Sabah

Martin, S., Rieple, A., Chang, J., Ahmed, A. and Boniface, B. 2015. Small farmers and sustainability: Institutional barriers to investment and innovation in the Malaysian palm oil industry in Sabah. Journal of Rural Studies. 40, pp. 46-58. https://doi.org/10.1016/j.jrurstud.2015.06.002

TitleSmall farmers and sustainability: Institutional barriers to investment and innovation in the Malaysian palm oil industry in Sabah
AuthorsMartin, S., Rieple, A., Chang, J., Ahmed, A. and Boniface, B.
Abstract

The Malaysian palm oil industry is well known for the social, environmental and sustainability challenges associated with its rapid growth over the past ten years. Technologies exist to reduce the conflict between national development aims of economic uplift for the rural poor, on the one hand, and ecological conservation, on the other hand, by raising yields and incomes from areas already under cultivation. But the uptake of these technologies has been slow, particularly in the smallholder sector.

In this paper we explore the societal and institutional challenges that influence the investment and innovation decisions of micro and small enterprise (MSE) palm oil smallholders in Sabah, Malaysia. Based on interviews with 38 smallholders, we identify a number of factors that reduce the smallholders' propensity to invest in more sustainable practices. We discuss why more effective practices and innovations are not being adopted using the concepts of, firstly, institutional logics to explore the internal dynamics of smallholder production systems, including attitudes to sustainability and innovation; and, secondly, institutional context to explore the pressures the smallholders face, including problems of access to land, labour, capital, knowledge and technical resources. These factors include limited access to global market information, corruption and uncertainties of legal title, weak economic status and social exclusion. In discussing these factors we seek to contribute to wider theoretical debates about the factors that block innovation and investment in business improvements in marginal regions and in marginalised groups.

KeywordsSustainability Neo-institutional theory Rural smallholders Sabah Malaysia Palm-oil industry
JournalJournal of Rural Studies
Journal citation40, pp. 46-58
ISSN0743-0167
Year2015
PublisherElsevier
Accepted author manuscript
Digital Object Identifier (DOI)https://doi.org/10.1016/j.jrurstud.2015.06.002
Publication dates
Published19 Jun 2015
LicenseCC BY-NC-ND 4.0

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Understanding realised strategy: offerings, institutions, displays, resource allocation and transitions
Rieple, A., Gander, J. and Haberberg, A. 2004. Understanding realised strategy: offerings, institutions, displays, resource allocation and transitions. BAM 2004: Management Futures. St Andrews, UK 30 Aug - 01 Sep

Understanding why your new design ideas get blocked
Rieple, A. 2004. Understanding why your new design ideas get blocked. Design Management Journal. 15 (1).

Exploring the management of resources: how cellular biology helps redescribe alliance management within the music industry
Gander, J., Rieple, A. and Haberberg, A. 2004. Exploring the management of resources: how cellular biology helps redescribe alliance management within the music industry. Association of Cultural Economics International: 13th International Conference on Cultural Economics. Chicago, USA 02-05 Jun 2004

How relevant is transaction cost economics to inter-firm relationships in the music industry?
Gander, J. and Rieple, A. 2004. How relevant is transaction cost economics to inter-firm relationships in the music industry? Journal of Cultural Economics. 28 (1), pp. 57-79. https://doi.org/10.1023/B:JCEC.0000009958.80454.f6

Avoid strangling new ideas
Rieple, A. 2003. Avoid strangling new ideas. Design Matters.

Inter-organisational relationships in the worldwide popular recorded music industry
Gander, J. and Rieple, A. 2002. Inter-organisational relationships in the worldwide popular recorded music industry. Creativity and Innovation Management. 11 (4), pp. 248-254. https://doi.org/10.1111/1467-8691.00256

Factors contributing to the effectiveness of hybrid organisational forms: the case of new product development
Rieple, A., Gander, J. and Haberberg, A. 2002. Factors contributing to the effectiveness of hybrid organisational forms: the case of new product development. British Academy of Management Conference 2002 (BAM2002). London, UK 09 - 11 Sep 2002

A taxonomy of factors contributing to the effectiveness of hybrid organisational forms: the case of design's role in product innovation
Gander, J. and Rieple, A. 2002. A taxonomy of factors contributing to the effectiveness of hybrid organisational forms: the case of design's role in product innovation. 11th International Forum on Design Management Research and Education: Strategies, Resources & Tools for Design Management Leadership. Boston, USA 10-12 Jun 2002

Inter-organisational relationships in the worldwide popular recorded music industry
Rieple, A. and Gander, J. 2001. Inter-organisational relationships in the worldwide popular recorded music industry. Critical Management Studies Conference. Manchester, UK 11-13 Jul 2001

The strategic management of organisations
Haberberg, A. and Rieple, A. 2001. The strategic management of organisations. Harlow, UK FT Prentice Hall.

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