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INDIGENOUS ENTREPRENEURSHIP BY PAPUAN WOMEN IN THE INFORMAL AGRICULTURAL SECTOR IN MANOKWARI-WEST PAPUA PROVINCE IN INDONESIA A thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy at Lincoln University by Ludia Theresia Wambrauw Lincoln University 2013 Abstract of a thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy A Indigenous Entrepreneurship by Papuan Women In The Informal Agricultural Sector In Manokwari-West Papua Province Indonesia bsby Ludia Theresia Wambrauw ABSTRACT The majority of Papuan women in Manokwari, West Papua, Indonesia, engage in marketing activity in the agricultural informal sector. However, the nature of their entrepreneurial activity, and the factors that impede and enable these endeavours, are not clearly understood. The aim of this research is to gain a better understanding of the entrepreneurial marketing activity of these women, and so enable opportunities for improving their position to be identified, along with constraints that impede them. At a more fundamental level, the study contributes to a greater understanding of indigenous entrepreneurship and the factors that influence indigenous entrepreneurs. Based on indigenous entrepreneurship literature, and knowledge of the Papuan context, a theoretical framework was designed to guide the research. A qualitative approach was used to investigate three case studies of groups of women in three different areas – a more remote area, a transmigration site, and an urban area. Within-case and cross-case analysis revealed that these Papuan women’s motivation is driven by their immediate family needs and their social and cultural obligations. More remote area traders have very strong communal and collective values, and they share resources when doing their productive work, but the transmigration site and urban traders appear to work more individually. However, the influence of the social and cultural values on the traders from the three cases is similar, and it is still necessary for them to fulfil their contribution to social and cultural obligations. The women from all three case studies proved to be open to innovation. They were outward looking and had market awareness. There is variation between the groups in their engagement with the cash economy and the expression of their market awareness. They actively seek to add value to their produce, but have different ways of doing this. Their implementation of marketing techniques varies, with urban traders employing a wider range of marketing strategies. The women traders from the more remote areas and the transmigration site depend heavily on their natural resources, whereas the majority of the urban traders are more dependent on marketing resources and financial reserves in order to buy produce from other producers. Hence, more remote area and transmigration site traders are self-funded, while the urban traders are partly self-funded. The more remote area traders relied very heavily upon social capital in conducting their production and marketing activities, whereas the traders in the other groups proved less reliant on social capital. ii The more remote area traders face greater constraints related to poor road access, high cost transportation, and poor access to physical markets. Even though the urban traders have better access to microfinance, women from all three groups had poor access to commercial bank credit schemes. In addition, all traders had poor access to government support. This study extends the understanding of indigenous entrepreneurship. It illustrates that the characteristics of entrepreneurship by indigenous people can vary from those traditionally associated with indigenous entrepreneurship to a mix of both indigenous and western entrepreneurship characteristics. These grounded insights into the varied nature of indigenous entrepreneurship, and the differences in constraints facing different groups, provide policy insights for the Papuan government. Key words: Indigenous Entrepreneurship, Papuan women, Constraints, Opportunities iii Acknowledgements I want to aknowlwdge these individuals and organisation who have made significant contribution to my Phd journey. First, I want to I give deeply felt thanks and gratitude to my Supervisor Associate Profesor Sandra Martin for her expertise and good understanding on my research topic, her academic support, invaluable and constructive feedback and insights, and her patience in editing my writing. I also also want to thank my Associate Supervisor DR Ramsi Addison for his valuable guidance and constructive comments and for providing a fresh eye to look through my thesis. I was blessed having these two Lincoln University staff as my supervisors. I am grateful for the financial support from NZAID that give me an opportunity to study in New Zealand, support my study at Lincoln University and support my family. I also thank The State University of Papua in Manokwari, for giving me permission to study for 4 years in New Zealand. I also wish to thank the LUCID group and the Social Writing Groups for their social and academic support. I would like to sincerely thanks my respondent traders in Manokwari City, Prafi District and Minyambouw for patiently anwering my questions and providing me with the information for my study. Without them, I could not complete this thesis. I also would like to thank the international home group of the Hornby Presbyterian Community Church, and home group of Lincoln Baptist Church, Persatuan Pelajar Indonesia Canterbury (PPIC), and Community Indonesia Society (CIS) that have been an important part in my social life in New Zealand. I am very grateful to my late father, Abner Wambrauw, who was proud of his three daughters and his dream for them to get a better education, and for my lovely mother, Thofelis Siti Sumaryati, who is only a housewife, has worked hard to support me and my sisters. I could not come to this stage, if my mother had not sacrified everything she had for my early university education and who prayed for me all the time. I thank both my sisters, Elisabeth Veronika Wambrauw and Monita Yessy Beatriks Wambrauw, who with their love always pray and give me encouragement. My life and study is nothing without support of my beloved family. Deeply from my heart, I thank my husband Soleman Imbiri for his love, trust, patience, encouragement, prayers and continues support through this journey, and my lovely daughter Nadya Angel Warimandia Imbiri and my son Lincoln Abner Nathanael Imbiri, who lets mum study and be busy with the university stuff and the oral defense, and to sacrifice valuable time to spend with them. Above all, I thank my God Jesus Christ who gave strength and provision through my Phd journey. iv Table of Contents Abstract ....................................................................................................................................... ii Acknowledgements ................................................................................................................... iv Table of Contents ....................................................................................................................... v List of Tables .............................................................................................................................. x List of Figures ............................................................................................................................ xi Chapter 1 INTRODUCTION ..................................................................................................... 1 1.1 Research Rationale ............................................................................................................ 1 1.2 Research Aim and Objectives ........................................................................................... 3 1.3 Structure of the Thesis ...................................................................................................... 4 Chapter 2 The Context of Papua................................................................................................. 5 2.1 Introduction ....................................................................................................................... 5 2.2 Poverty in Papua ............................................................................................................... 5 2.3 Agriculture in Papua ......................................................................................................... 8 2.4 Special Autonomy and Government Roles ..................................................................... 14 2.5 Indigenous Entrepreneurship of Papuans ........................................................................ 18 2.6 Indigenous Entrepreneurship of Papuan Women in Informal Agricultural Sector ......... 22 2.7 Conclusion .....................................................................................................................