Sámi reindeer herd managers: why do they stay in a low‐profit business?

Abstract

PurposeThis paper aims to reflect on the Sámi reindeer industry, which, in spite of a low economic return, contrasts with other primary industries in not displaying a population decline.Design/methodology/approachThe project in this paper is based on two major hypotheses: the life form hypothesis: reindeer management has a particular value for the performers, being the condition for an active choice of staying within the industry; the capital hypothesis: lacking recognition of the resources of the reindeer‐managing Sámi is/has been limiting their establishment in capital requiring undertakings.FindingsIn the paper there are indications that the reindeer‐managing Sámi practices are in a Weberian sense a substantial rationality. Analysis at hand indicates close connections between landscape, management type, and type of rationality in reindeer management.Practical implicationsThe project in the paper analyses the economy of reindeer management in chosen regions by both quantitative and qualitative studies, focusing on the household level. For the quantitative analyses the creation and extent of value streams in the households of reindeer management and near surroundings are focused. In the qualitative analyses the point of departure is decision situations and strategic choices with reindeer‐managing Sámi. Comparative analyses will be undertaken to explore representation of the regional studies.Originality/valueThe paper shows that the design is original and the outcome is expected to have a potential for changing the focus of current policies.