Reward Systems to Foster Sustainable Multi-Stakeholders Collective Action: Case in Organic Tea Farming in West Sumatra, Indonesia

Abstract

Cooperatives have potential to strengthen communities and benefit their members. In developing countries, cooperatives are an important component of economic development plans in the fields of microfinance, agriculture, and fisheries. In agriculture, cooperatives ensure collective bargaining power, sustainable practices, and knowledge sharing. This can support small farmers to marketing their agricultural products globally. This research is motivated by the challenges in achieving sustainable multi-stakeholder collective action aimed at improving the welfare of organic tea farmers in West Sumatra, Indonesia. Specifically, the study seeks to identify a reward system that can promote sustainability within these cooperatives. Using a qualitative research approach and content analysis of in-depth interviews with 12 key informants, we develop a reward system design to foster sustainable collective action in the context of cooperatives, which has not been widely studied before. The research findings highlight the critical role of an appropriate reward system in creating an environment that supports sustainable collective action. This study emphasizes the importance of policy development that align with the interests of all stakeholders involved, as well as the necessity for effective coordination between cooperatives, local governments, and private companies. In addition, the research suggests that the further studies should focus on implementing this reward system on a larger scale and further testing its effectiveness in enhancing the sustainability of collective action through cooperatives.