A Neglected Aspect of Business: Human and Social Capital in the Sri Lankan Tea Plantations

This paper examines idiosyncrasies of tea plantation culture and politics in relation to Sri Lankan national and popular cultural typologies, with special reference to female tea plantation workers. Tea production in Sri Lanka is heavily based on manual labour, and it is the largest industry that provides accommodation for employees and their families. In this paper, it is argued that politico-cultural production relations have dominated labour productivity in tea plantations. Ways in which female workers have been marginalized, through patriarchal politics, ethnicity, religion, education, elitism, and employment are explained. This culture of the plantation community operates negatively with respect to the management agenda. It is also argued that social capital development in tea plantations is important not only for productivity improvement, but also for reasons of political and social obligation for the nation, because migrant plantation workers have been working and living in plantations over 150 years.

A Research Agenda for Strategic Management Research in Developing Countries

This paper explores the extent to which it is possible to address issues pertaining to developing countries with significant socio-cultural and political interventions. Examples from the Sri Lankan tea plantations are used to illustrate the necessity to understand the context from actors’ perspectives using rigorous case study research, before making prescriptive recommendations. Current problems faced by the Sri Lankan tea industry are identified as not merely micro-institutional or managerial. We argue that their roots lie in reproduction of social struggles at the level of production. We propose a research agenda, in the doctrine of critical theory, for exploring the formation and implementation of business strategies in developing countries, using the tea plantation sector as a case. Our primary attempt here is to conceptualize strategic management in the context of political economy and to identify central issues to be addressed. Accordingly, we argue that researching historical dynamics of strategic management facilitates understanding and interpreting the articulation of modes of production in a given social formation. We further argue that a highly context specific research agenda is required to fully comprehend idiosyncratic characteristics of Sri Lankan strategy structures and organizational forms. Then, it is proposed that explaining the role of social formation in shaping and reshaping strategy relations should be at the centre of the research due to the social significance attached to ‘strategy’. Finally, methodological and epistemological necessities arising from the nature of strategy relationships are discussed.

Farming under constrained budgets: Practices of agricultural credit users in central Lombok, Indonesia

There has been a long dependency on credit by Indonesian farmers as a result of the lack of capital to apply proper farming practices. This paper describes the farming activities applied by agricultural credit users in Central Lombok, Indonesia. A survey was conducted during July 2001- March 2002 of 65 farmers making use of government or private credit in three villages within the Regency. Data from the farmers were collected using face-to-face, semi-structured interviews. Survey results indicated that on average, farmers had some 20 years experience of farming, were aged 40 years, but lacked of formal education. Their main asset was cropping land with average landholding of 0.69 ha. As a consequence of their capital constraints, farmers were commonly making use of credit to finance their farming activities, including both production of rice as the main crop and secondary crops. Farmers generally applied less than recommended amount of inputs in their farming practices, since the amount of credit they obtained was limited. As a result, their farms become less productive and their repayment capability of loans diminished. Of 65 farmers interviewed, 54 could earn extra income by engaging in a variety of non-farm activities, which contributed on average some 36% to family incomes of over Rp 5 million (A$ 1 thousand). The average credit repayment rate made by agricultural producers was 60%. The repayment made did not always reflect farm production capacity, being sometimes supported by other borrowings. The greater role of credit is not in increasing agricultural production or improving farmers’ income, but in helping them to sustain farm production and their living. Farmers need a bigger amount of credit to make an impact on their livelihood. This should be accompanied by extension services for farmers to enable better use of credit and to change their attitude towards it. As well, farmers require to be equipped with technical and market skills to run a business. Interdisciplinarity, holistic analysis, and an expansion of traditional ‘agricultural’ interests to embrace the span of interests included in rural livelihood, are each critical features of revision of the existing system.