Luận án Tiến sĩ Marketing: Đánh giá mô hình cụm tập trung cho nông dân vừa và nhỏ tại Fiji - Sully R. Taulealea, RMIT University (2010)

EVALUATING A CENTRALIZED CLUSTERING MODEL FOR SMALL- MEDIUM SCALE FARMERS IN FIJI A thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy Marketing Sully R. Taulealea MA International Studies, Msc Agricultural Economics School of Economics, Finance and Marketing Business Portfolio RMIT University March 2010 ii CANDIDATE’S CERTIFICATION I certify except where due knowledge has been made, the work is that of the author alone; the work has not been submitted previously, in whole or part to qualify for any other academic award; the content of the thesis is the result of the work which has been carried out since the official commencement date of the approved research program. Name: Signed: Date: Note: The candidate passed away on September 26, 2010. The candidate’s certification is signed by his primary supervisor who acknowledges, to the best of his knowledge, that the above certification relating to the authenticity of the thesis is true.

iii ACKNOWLEDGEMENTS I would like to thank my supervisors, Dr. Raju Mulye and Professor Tim Fry for all the support, encouragement and help provided during my tenure as a PhD student at RMIT University. This is not to mention the structural and financial support made possible through the School of Economics, Finance and Marketing for the Nvivo8 qualitative software training, trips to Fiji for data collection and conference presentation and for the professional transcribing of my audio-recorded research interviews. The tireless support of my wife, Jennifer cannot be expressed in words and I would like to commend her.

The extent to which she wholeheartedly gave me her full support is very much acknowledged. She silently absorbed the challenges that arose through this research and I would like to say thank her for being a good friend during dark moments of this research. Similarly, I would also like to thank my two beautiful daughters Hannah and Iliana for giving me great joy and for shouldering this burden with me, even though they did not have much choice. I am also grateful for the constant financial support of RMIT University, the Business Research Office (BRO) and the School of Business.

I would like to thank the staff Prue Lamont, Kristina Tsoulis-Reay, Ember Parkin and Kalpana Lalji for the valuable assistance received through the BRO. Last but not the least my sincere appreciation and thanks go to the Lili family for their tremendous support and prayers for me and my family during the entire process of my study here in Australia. iv Table of Contents 1.2 Smallness of Farm Sizes .1 SMFs in the Sugar Industry .3 Removal of Preferential Prices .5 Purpose of the Study.7 Nature of the Study.8 Scope, Limitations, and Delimitations .11 Definition of Terms .0 CHAPTER 2: REVIEW OF LITERATURE.1 Fiji’s Agriculture Sector .2 Issues Facing Fiji’s Agriculture Sector .2 Sugar Preferential Pricing .3 Quality and Consistency.4 Smallness of Farm Sizes .7 Business, Management and Market Training.3 Significance of the Problem .4 Suggested Approach: Agglomerate Farmers through Clustering .5 The Concept of Clustering.6 The Proposed CCM.7 What is Clustering? .8 Reasons for Clustering .1 Smallness of Size and Disparity.9 Benefits of Clustering.10 Dimensions of Clusters .11 Management and Organizational Capability .12 Foundational research for the Centralized Clustering Model .1 Study by Uzor (2004) in Nigeria .1 Framework for clustering.2 Limitations Lessons learnt .2 Study by Miller and Besser (2000) in Rural Iowa .3 Study by Felzensztein (2003).1 Purpose of Study.2 Results of Felzensztein (2003) Study .4 Study by Tambunan (2005) .1 Foundational Cluster Structure for Indonesia .2 Findings from Indonesia Cluster Study .13 Summary of Findings.0 CHAPTER 3: THE CENTRALIZED CLUSTERING MODEL.3 Dimensions of the CCM .4 Summary of the Functions of the Marketing Intermediary .2 Research Design and Appropriateness .4 Purpose of the Study.6 Semi-structured Interview Questions.0 CHAPTER 5 RESULTS PART I: PERCEPTIONS OF THE CCM CONCEPT .2 RQ1 Category 1: Perceptions of Agglomerating SMFs.1 Theoretical Concept is Appropriate.3 In-depth exploration of the appropriateness of the CCM.1 Efficiency, Communication and Marketing.2 Organizational and Traditional Structure .3 Quality and Consistency.4 In-depth Exploration of the Workability of the CCM.1 Address Market Challenges .2 Adaptable to Communal System .5 RQ 1 Category 2: Stakeholders’ Views on Partnership .1 Essential for SMFs .2 Commitment and Trust is required .3 Economical and Viable.6 Insights into Why Partnership Should Be Supported .2 Establishes Market Guidelines and Business Linkages .3 Training Vital for Farmers .7 RQ 1 Category 3: Views of the Controlled Approach.1 Challenge for Fiji .2 Workability of the CCM.1 Structured System Needed .2 Adaptable to the culture.3 Important and Strategic.8 RQ 1 Category 4: Should we Consider Culture?.1 Yes, Culture has to be considered .9 Why Consider Culture? .1 Downfall of Projects.2 Culture: Reality of Life.0 CHAPTER 6 RESULTS PART II: JUSTIFICATION FOR THE CCM.1: Level of Research and Technology in Fiji .1 Research and Technology is Below Average.2 Level of Research and Technology is Average .3Level of Research and Technology is Good (Above Average) .2: How to improve Research and Technology? .1 Improve Extension Approach .3 Enhance Human Resources .4 Summary of Research and Technology Results .4 RQ2 Category 2: Perceptions of Trust.1 Trust - Important for Business Sustainability.1 Developed over Time.3 SMFs Should Earn Trust .2 Trust – Related to Quality Service.3 Trust – Establish Solution .4 Trust – Requires Secure Transaction.5 Trust – Weak and Fragile .6 Summary of the Issue of Trust .5 RQ2 Category 3: Type of Government Support? .2 Capital and Equipment.5 Summary of the Assessment for Governmental Support.6 RQ2, Category 4: Farmers’ Acceptance of Model.1 Benefit and Ownership.2 Trust and Clarity.3 Market Access and Stability.4 Summary of Farmers’ Acceptance of the Model.7 RQ2, Category 5: SMF Support from Established Consumers .1 Utilize Business Partnership with Established Consumers .2 SMFs to Meet Market Standard.3 Provide Structural Support.4 Capital Start-up for SMFs.5 Summary of Category 5 Support from Established Buyers .8 Summary of responses to Research Question II.0 CHAPTER 7 RESULTS PART III: MARKET APPROACH AND CONTRIBUTIONS 181 7.2 RQ3 Category 1: How to Address Hotel Imports? .1 Increased Quality of Produce by SMFs.2 Provision of a Marketing Intermediary .3 Enhanced Capital Structure.4 Incorporation of SMFs by Hotels.5 Introduction of Import Substitution and Tariff .6 Increased Government Support .3 Are SMFs trained to be Market-Focused? .1 No, SMFs are not trained for the Market.2 Yes, SMFs are trained for the Market .4 Insights into why SMFs are not Market-Focused Trained .1 Lack of Market-Focused Training.2 Poor Infrastructure and Poor Mindset .3 Summary of Category2: Market-Focused Production of SMFs.5 RQ4: How to Assist SMFs in Fiji? .1 Establishing a Marketing Intermediary .2 Increasing Government Assistance .3 Improving Market-Focused Training.4 Increasing Funding or Establishing a Credit Facility .5 Co-operatives; Research and Extension; Infrastructure; and Support.1 Reforming Co-ops .2 Improving Research and Extension.3 Developing Rural Infrastructure .4 Utilizing Infrastructural Support .6 Summary of Suggested Support System in Fiji.6 RQ4 Category 2: Strategies to Assist SMFs .1 Understand Current Situation, Establish Targets and Infrastructure .2 Adopt the CCM Concept .3 Provide an Enabling Environment.4 Conduct Agricultural Auction or Show .5 Ensure a Strong Organizational Structure .6 Communicate Market Requirements to SMFs .7 Adopt the Cooperative Model.8 Consider the Farm Fiji Concept .9 Improve the Whole Chain Network.10 Establish and Showcase a Personal Model .7 Summary of Research Participants’ Strategies to Assist SMFs in Fiji .1 Understand Situation, Facilitate Infrastructure, and Establish Targets .3 Training and Coordinating SMFs in a Demand-Driven Approach .4 Establishing Relationships with the Hotel Industry.1 Secured Buying Agreement .0 CHAPTER 8: DISCUSSION AND CONCLUSION.2 Participants’ Perceptions of the CCM Concept.1 CCM Structure is Relevant.2 Practically Feasible to Meet Market Requirements.1 Address Market Challenges .2 Upholds Communal System.3 Provides Leadership Structure, Market-Knowledge Transfer .3 Participants’ Perceptions of Business Partnerships in the CCM.1 Partnership is Essential for SMFs .3 Establishes Market-Business Guidelines and Linkages .4 Commitment and Trust are Important .4 Perceptions of the Controlled Approach .1 Controlled Approach is Workable .2 Important and Strategic.3 Controlled Approach is a Challenge .5 The Issue of Traditional Culture.6 Justification of the Model .7 Strategies to Improve Research and Technology .8 Acceptance of the CCM by SMFs .9 Support from Established Buyers .2 Structural and Capital Support .3 SMFs to meet Market Standard.10 The Market-Focused Approach of the CCM .1 Addressing the High Import Rate of Food Produce.2 Are SMFs Market-Focused Trained? .1 SMFs - Not Market Trained.2 SMFs - Market Trained.11 The CCM in Fiji’s Context .1 Components to Address the Current Situation (the ‘CRUST’).3 Selecting and Training of SMFs.4 Addressing the Requirements of Hotels.1 Category 1: How was the CCM Received by Selected Stakeholders in Fiji According to the Following Criteria: CCM Concept; Partnership; Controlled Approach; and Culture?.2 Category 2: Justification to Agglomerate SMFs through the CCM .3 Category 3: Is the proposed market-focused approach of the CCM appropriate for SMFs in Fiji?.1 High Food Import Rate.3 Market Focused Approach of the CCM .4 Category 4: What aspect of the CCM needs to be considered for the Fiji context?.1 Revised Model Description .13 Direction for Future Research.0 Research Participants Demographic Information .0 Letter of Invitation to Participants .0 Research Background and Interview Questions.1 Background to the Study .2 The Centralized Clustering Model.0 Participant’s Consent Form .0 RMIT Ethics Application .0 RMIT Ethics Approval.0 Number of Verbatim Interview Transcript Pages.0 Category 1 Themes Obtained through Nivivo8 .0 Marketing Intermediary Design (Source: Taulealea, 2005, pp128). 301 xvii List of Tables Table 2.1 The Strcuture of the Cluster.3 Forms of Joint Action in the Cluster.01 RP’s responses to the CCM.02 Appropriateness of the CCM.03 Why the CCM can be implemented.04 RP’s view of partnership as an appropriate approach.05 Why partnership is essential for SMFs.06 Views on the controlled approach.07 Workability of the controlled approach.08 Should culture be considered?.09 Insights on the issue of culture.01 Level of research and technology in Fiji.02 How to improve research and technology.03 Perception on the issue of trust.04 Type of government support recommended.

163 Table 605 What might cause SMFs to accept the CCM. Error! Bookmark not defined.06 Support for SMFs.01 Addressing the issue of hotel demands.02 Are SMFs market trained?.03 Why SMFs are not market trained.04 Support system needed assist SMFs.05 RPs’ concept of assisting SMFs. 210 xix List of Figures Figure 2.01 Networks of a Cluster .02 Internal and External Networks of a Cluster.01 The Centralized Clustering Model.01 RP’s response to the CCM.02 View of partnership as the foundation of the CCM.03 Views on the controlled approach for SMFs in Fiji .01 Level of research and technology.02 How to improve research and technology.03 Perceptions of trust.04 Factors influencing SMFs to accept the CCM.05 Receiving support from established buyers.01 Addressing Hotel Demands.02 Are SMFs market trained?.03 RPs’ model to assist SMFs.02 Revised Marketing Intermediary. 269 xx EVALUATING A CENTRALIZED CLUSTERING MODEL FOR SMALL-MEDIUM SCALE FARMERS IN FIJI xxi ABSTRACT Market failure, inconsistency and fluctuation have been some of the challenges facing small-medium scale farmers (SMFs) in Fiji.

Past records show that major government and privately driven marketing projects have failed to achieve long-term sustainability. This thesis takes into account these shortcomings and proposes an alternative framework based on the ideology of clustering, which has been shown to be successful in other countries. The research employed a qualitative phenomenological approach. It involved in- depth interviews with 34 stakeholders in Fiji, namely; hoteliers, academics, Ministry of Agriculture employees, and representatives from private organizations.

The results showed that participants valued quality, efficiency, monetary benefits and culture as core issues surrounding the acceptance of the model. According to participants, quality entailed a holistic approach incorporating pre-planting, post-harvesting and marketing phases; efficiency focussed on the turn-over time in the production process; monetary benefits included economic returns and ownership; while culture emphasized the importance of the communalistic behaviour of “solesolevaki” in traditional society, and how this could be consolidated in a market-driven environment. A refined CCM is proposed based on this feedback. This research is useful for policy makers and project developers in the agriculture sector.

In addition it would be useful to aspiring groups of SMFs at the provincial and divisional level in Fiji.