1
MSc International Business and Management
Thesis
“The Role of Communication in Sustainability Transition Emerging Society: A study of Dutch - Indonesia New Business Model Setup”
Putri Nur Astiwi S3347192
Supervisor: dr. BJW (Bartjan) Pennink
17 June 2019
Main body word count: 14,992
2 Abstract
This paper aims to address the dearth of scientific literature on the communication process of sustainability transition in emerging markets/countries, as well as the newly arising literature on New Business Model. At the current stage, some developing countries still have an unfavorable infrastructure for sustainability. New Business Model with global partnership can take an essential role in the sustainability transition for developing countries by providing multiple value creation as well as knowledge transfer from advanced countries (and opportunity for advanced countries to expand globally). However, International Business scholars stress the obstacle in information flow once any involvement of cross-country partnership is initiated. Sustainability transition needs to be perceived correctly by society as a prerequisite to obtaining the process legitimacy. The study provides an overview of how communication takes a role in influencing the sustainability transition perception of local people on the Dutch–Indonesia New Business Model setup. The study suggested communication as process enabler that comprises of three main parts: cross-country knowledge transfer, local agents’ mediating the process with the “telling” and “showing” way of communications, and sustainability transition scenarios according to the content of the most trusted channel. Local agents (i.e. local government, local actor leader, social media) have different roles depending on the inherent determinants of the process (with what-how approach). However, research of the strategic interaction of local actors in sustainability transition is still underdeveloped. Using a case study of Dutch – Indonesia New Business Model enterprise, this research will fill the literature gap as well as explain the practical challenge on sustainability transition mechanism in a developing country.
3 Preface and Acknowledgement
This case study has inductive reasoning to shed more light in the role of communication to influence sustainability transition of local people on Dutch – Indonesia New Business Model setup process. At my best, I provided the structure of the process, involved actors, and inherent determinants with my own perspective. This is my attempt to reenacting the interviewees’ experience and point of view, doing a triangulation with supporting documents, and visiting the fieldwork location. I would like to invite the readers to have a critical view of this research (both supporting and challenging perspective). Thus, the new perspectives and concepts which are introduced in this study can both fill the gap in past literature and inspiration for future research.
4 Table of Content
Abstract ... 2
Preface and Acknowledgement ... 3
Table of Content ... 4
1. Introduction ... 6
2. Literature Review... 9
2.1 Core conceptual review... 9
2.1.1 Sustainability Transition: the notion of change management ... 9
2.1.2 New Business Model and Sustainability Transition ... 10
2.1.3 Communication Role in the Transition Process... 11
2.1.4 Way of communication theory: Narrative Paradigm and Seeing First ... 12
2.1.5 Cross-country collaboration: Dutch - Indonesia sustainability partnership ... 13
2.2 Research Expectation Framework ... 15
3. Methodology ... 20
3.1 Research Focus and Research Methodology ... 20
3.2 Case Selection ... 20
3.3 Data Collection Procedure ... 21
3.4 Research Analysis Plan ... 22
3.5 Research Design Quality Judgment Test ... 23
3.5.1 Construct Validity ... 24
3.5.2 Internal Validity ... 24
3.5.3 External Validity ... 24
3.5.4 Reliability ... 25
3.6 Ethical Issue in the Research Approach ... 25
4. Case Analysis and Discussion ... 26
5
4.1.1 WHAT: TBL value creation and supporting resource ... 28
4.1.2 Contingencies: enabler factors ... 29
4.1.3 HOW: Communication in the Collaboration and Awareness of change ... 32
4.2 The process of communication influence sustainability transition ... 33
4.2.1 ‘Telling’ way of communication ... 34
4.2.1.1 Local government (WHAT: regulation; HOW: policy-making and seminar) . 34 4.2.1.2 Local actor leader (WHAT: civic engagement; HOW: dialogue and forum) .. 36
4.2.1.3 Social Media (WHAT: exposure; HOW: online forum and mass attention) ... 37
4.2.2 ‘Showing’ way of communication (WHAT:commitment;HOW: Piloting project)40 4.3 The content of the most trusted channel implication in transition ... 42
5. Implications for Theory and Practices ... 44
5.1 Contribution in research gap and theoretical background ... 44
5.2 Contribution to practical knowledge ... 47
6. Limitation and Future Research ... 47
7. Conclusion ... 48
8. List of Reference: ... 50
9. Appendix ... 55
9.1 Review from NBM 2019 Conference ... 55
9.2 Coding and Interviewee Background... 59
9.3 Photo Documentation and link database ... 61
6 1. Introduction
Sustainability transition becomes an interesting issue to discuss considering its significant impact to develop sustainable production and consumption (Grin et al., 2010). However, some concerns are still addressed to the developing countries where they still lack in governance, infrastructure, and social awareness (Bevan 2004; Wood and Gougn 2006), meanwhile most advanced countries, such as European countries, already developed many researches, policies, and infrastructures that aim at the sustainability ahead (Mejia et al., 2018). New Business Model (NBM hereafter) which involves developed country and emerging country partnership can positively attribute the sustainability transition in emerging society. The feature of New Business Model in creating multiple values that beyond the conventional model become central element in achieving sustainability transition. Nonetheless, social resistance and obstacle in information flow become the main challenges (Maseland et al., 2018). Communication then holds a critical point in this process. The research focuses on exploring the role of communication in influencing sustainability perception of developing country local people on Dutch – Indonesia NBM setup. The process comprises of three main parts: cross-country knowledge transfer from the company, the help of local agents as mediator the company to the local people (with the “telling” and “showing” ways of communications), and sustainability transition implication of the most trusted channel’s content. However, there is little research in strategic interaction of local actors and niche level analysis of sustainability transition (Markard et al., 2012; Musiolik and Markard, 2011). The extensive explanation of communication role in firm level and local agents’ contribution can fill this research gap.
The global climate change increases the world’s respect for sustainability. Furthermore, the rapid economic growth in developing countries leads to the increasing number of industries which can negatively impact the ecology (Jupesta et al., 2011). However, sustainability infrastructure and awareness in developing countries are still lacking (Bevan 2004). Accordingly, the sustainability transition is imperative for developing countries.
7 sustainability leads to a phenomenon to promote New Business Model where the business will not only focus on the financial performance but also on the sustainability aspect (Jonker, 2012). The existence of a global partnership in a new business model can also develop mutual benefits and opportunities between two (or more) countries, including facilitating the sustainability knowledge sharing from the advanced country to the developing country. Hence, it is important to understand the influence of the process of New Business Model global partnership such as Dutch – Indonesia NBM enterprise on sustainability transition in a developing country.
To understand that process, the author conducted a case study in Dutch – Indonesia New Business Model setup. Dutch – Indonesia has a long-established partnership (70 years of development corporation). The Netherlands adding value for Indonesia lies in sustainability development (Dutch – Indonesia Multiannual Policy Framework 2017). To support this continuing joint hand of sustainable future growth program effectively, it is interesting to observe the sustainability transition process in Indonesia by the establishment of Dutch – Indonesia New Business Model enterprises.
8 transition perception of local people? (c) How does communication content in the most trusted agent/channel take role in sustainability transition?
9 2. Literature Review
2.1 Core conceptual review
To answer the research questions, it is important to understand the literature background used in this research. The study attempted to combine several roots of literature to derive inductive reasoning. The root concepts in this research comprise as sustainability transition and change management, new business model, communication, and international business. Further, the research gap is also identified in this review. The possible connection to address the shortcoming research will also be explained below.
2.1.1 Sustainability Transition: the notion of change management
Sustainability refers to the present generation ability to meet their needs without suffering the future generation capacity to fulfill their needs (Brundtland, 1987). In the past, the concept of sustainability only concentrated on the environmental issue, while later, it includes social and economic aspects. These three pillars of sustainability are often called the Triple Bottom Line (‘TBL’ hereafter) (Elkington, 1998). Simultaneously, sustainability becomes an emerging field by scholars and practitioners because these pillars underpin ecology resilience, economic prosperity, and social development for current and future generation. Seeing the high importance of sustainability, it imposes part of the world to undergo the sustainability transition.
10 Markard, 2011). Therefore, an in-depth analysis of different micro agency in transition process can fill in the gap on how the regime is changed (Markard et al., 2012).
The transition faces the fundamental challenge while confronting the situation of strong path dependence and lock-in existing institutions (Ahman and Nilsson, 2008). This often occurs in the area where the mixture of well and ill-functioning institutions to exhibit the legitimacy of sustainability practices. Developing countries are someway relevant to this showcase (Meija et al., 2018). Change management scholars accentuate the locals’ legitimacy related to the awareness of what to change (the content of those changes) and how to change (the process of making the change) (Cawsey et al., 2012). Society might have a general sense of the transition process, but they will not mobilize the change until the need is framed and believed.
2.1.2 New Business Model and Sustainability Transition
The business model has various definitions but one common feature, which is the organizational logic, the way of organizing and ability to network the partners to create value (Osterwalder, 2010; Linder and Cantrell, 2000). The known business canvas model comprises of a nine-building block to create value and contribute the financial benefit. This model received a wide critique by not covering a complete set of value creation beyond financial value, such as ecology and societal value (Amit and Zott, 2001). Therefore, a new way of thinking to develop the business model is required.
11 Triple Bottom Line (Elkington, 1998). The presence of a new business model will bring more value-adding compared to the conventional one.
Besides the value creation network, another central element in the new business model is the art of new collaboration (Jonker, 2012). It is important to balance the multi-actor – value creation in which local actors are contributing to the local development actualization (Pennink, 2014). The new business model can be a collective property for actors involved, not only the company itself, but also partners, and community. This linkage might be good to establish a wide impact, but on another hand, any misalignment will endanger the value creation network.
Having a feature to connect and collaborate with multiple actors, the new business model then holds a pivotal role in achieving a systemic change of sustainability transition. The societal change needs the fundamental transformation of the business, which beyond just the company’s corporate responsibility (Loorbach and Wijsman, 2013). The business model allows the mediation between new value creation from niche to regime level in sustainability transition (Bidmon and Knab, 2018). The proactive engagement business with society can eventually facilitate and determine the stabilization process within the transition. Therefore, the presence of the new business model will increase affluence society’s sustainability transition positively.
2.1.3 Communication Role in the Transition Process
The transition process faces a challenge in social resistance with existing institutions. The society’s bounded rationality will limit their capability to evaluate the new idea of sustainability. The society will tend to be short-sighted to consider the new knowledge with their relevant experience. In the case of radical transition, the process might highly depend on the interaction with other knowledgeable agents (Dosi et al., 2006). Without a strong benchmark, society tends to consider the transition as an uncertain process. Hence, this path-dependent will result in the lock-in for the sustainability transition process.
12 readiness to change, and commitment (Armenakis et al.,1993; Klein, 1994). Mutual understanding can be shaped by communication (Elving, 2005). The communication is a significant element to facilitate the collaboration (Caldwell, 1993) that needed by the New Business Model enterprises in creating the sustainability value (Jonker, 2012).
However, it is necessary to note individual sense-making as a separate process but interrelated with the communication process. Local society might perceive differently from the agent’s expectation. The rationale behind the unexpected respond can be explained by the low trust and influence of the communication agent. Some researchers found some evidence related to the trust in the communication agent as an integral role for social learning in sustainability (Zamora et al., 2018; MacKeracher, 2018). Thus, it is interesting to also scrutinize the implication of the most trusted channel’s content to the sustainability transition.
2.1.4 Way of communication theory: Narrative Paradigm and Seeing First
In this research, we focused on defining the way of communication with the “telling” and the “showing” ways of communication. The “telling” way of communication is supported by the Narrative Paradigm Theory, where people will comprehend complex information and catch ideas through narrative (Fisher, 1984). Also, this research includes “showing” way of communication with the notion of Seeing First theory (Cawsey et., 2012; Mintzberg, 2001). These ways of communication focus on gaining commitment to transition process initiatives by making use of piloting project and visualization.
13 Another way of communication used in this research is the “showing way, using the power of visualization as based to communicate. This way is supported by Seeing First strategy theory (Cawsey 2012; Mintzberg, 2001). Locals need to see the result, success story, and visualization before committing in the change process (Cawsey et al., 2012). People who already saw the real result and had experience in the piloting project can carry out the transition process.
2.1.5 Cross-country collaboration: Dutch - Indonesia sustainability partnership It is worth to note the power of collaboration in the value creation within the new business model (Jonker, 2012). Any knowledge transfer occurs within the collaboration does not only support the multiple value creation but also strengthen the relationship between parties (Hohenthal et al., 2014). The collaboration allows the complementary action in which the parties may lack in (Dahan, 2010). In the world, each country has its potentials and scarcity. Thus, cross-country collaboration can provide mutual benefits to assume involved countries also have mutual respect.
The Netherlands and Indonesia have special relations seeing both countries have shared a long history. While in the past the tie between countries ever broke after Indonesia dependency in 1945, however, two nations relationship has been restored ever since. Moreover, the Netherlands has supported development aid from the 1960s, considering the weak condition of Indonesia back then. Although the Dutch - Indonesia development corporation theme has evolved, the cross-country partnership is still maintained. Sustainability becomes the priority for the partnership because this is the added value that can be offered by the Netherlands to Indonesia.
14 Netherland and Indonesia collaboration provide sustainability knowledge transfer, as well as improving the economic and business relationship (Hohenthal et al., 2013).
International Business scholars emphasize the liability of foreignness during the cross-country collaboration, which can hamper the information flow (Bugelsdijk et al., 2018; Maseland., et al. 2018). Different institution, language, and culture might lead to misinterpretation and misunderstanding in the ideas and practices transfer. This challenge may result in lower productivity (Merkin et al., 2014) and reduce willingness for a global company to enter the country with a distant cultural difference (Tihanyi et al.,2005). Local agents can be the mediator for the company to the local people to avoid the misunderstanding. The participation of local actors is required as they can provide a concrete solution needed in local development and have a greater openness to change (Pennink, 2014). Further, the deep analysis of communication in the transition process, which involves multiple actors within cross-country partnership is a novel contribution in management studies (Musiolik et al., 2012).
Figure 1 Cross country knowledge transfer from developed to emerging country on Dutch – Indonesia NBM enterprise
(Adoption the model of Dow, 2017 and Geels, 2002, on cross-country sustainability transfer context)
Based on the literature review, the research derived an illustration of the process of how Dutch – Indonesia New Business Model enterprise can influence local people (figure 1). The model adopted from Geel, 2002 of the sustainability nested hierarchy and Dow, 2017 of Coleman Boat model in the issue of country distance. The research focuses on the process in point AN to BN that will be explained further in the research
15 2.2 Research Expectation Framework
Referring to figure 1, the study focuses on the role of communication in the niche level in the (a) process of cross-country knowledge transfer from the NBM enterprises to the selected agent (as expectation 1); (b) process where local agents continue the effort to the local people with their way of communication of the “telling” and the “showing” (as expectation 2). Both will be illustrated in figure 2. Further, the research also defined (c) expectation 3, the sustainability transition implication possible scenarios depending on the content delivered by the most trusted agent/channel to local people (illustrated in figure 3 and table 1).
Figure 2 General Conceptual framework
Notes: Although the above conceptual framework appears as deductive reasoning, this research still has an inductive methodology for collecting the findings. The research will elaborate the information on how the relationship takes place (the extensive explanation of the ‘arrow’).
Expectation 1: The role of communication in the cross-country knowledge transfer from Dutch – Indonesia NBM enterprise employees to the selected local agents
New Business Model enterprises contribute a significant implication to the sustainability transition in a country by facilitating multiple value creation process beyond what the traditional business model can do. This multiple value creation strategy can support to build a sustainability transition (Wasseling, 2015). Further, the collaboration feature within multiple actors embedded in the New Business Model (Jonker 2012; Pennink 2014) becomes a central element to facilitate the sustainability transition. However, without the right communication between the actors involved, the collaboration cannot happen (Gaston et al.,2004).
16 be imperative steps to obtain the local legitimacy (Kostova et al., 2008; Kraatz and Block, 2008). Thus, the communication shall have the role to be the catalyst for the cross-country collaboration. In the case discussion, it will be explained extensively on how this happens particularly in the Dutch – Indonesia NBM setup.
Expectation 2: The role of communication in local agents’ the “telling” and the “showing” ways to influence sustainability transition perception of local people
Local actors are needed to be involved in actualizing the local development (Pennink, 2014). Local agents know better the concrete problem and solution, as well as the openness to ease the spreading of local legitimacy. The NBM enterprises may have a guideline based on previous projects. However, the process’ way of communication needs to be adjusted to the local context. The research defined the local way of communication through the “telling” and “showing” ways of communication.
Expectation 2a: Local agents’ “telling” way of communication influence to sustainability transition perception of local people
The “telling” way is supported by the Narrative Paradigm Theory using the power of storytelling. As human was born as storytellers and listeners, this implies that human nature will be persuaded by a story than logical arguments (Hanan, 2008). This is also a powerful tool in a cross-cultural context (Barker and Gower, 2010). Stories can help people in a diverse background to easily make a sense out of one idea. The sensing process involves finding common ground of the given messages and constructing empathy to understand others’ point of view (Lamsa and Sintonen, 2006). Hence, this way of communication can be useful for the Dutch – Indonesia New Business Model enterprises to deliver sustainability transition perception for emerging society.
17 (a) Local government is the party who has the authority in policy making and capability to decide the budget for local infrastructure. Local governments’ authority and capability are a valued resource to make a narrative story to be credible. Based on the change management literature, resource, and decision-making power might impress society and gain their trust (Cawsey et al., 2016). Local government’s capacities to develop a policy that favors the society becomes their negotiation tactic. They build the narration with their power.
(b) Local actor leader is defined as the local agent who has behavior that influences the locals’ perception and ability to move local people. The sender’s close relationship with the society might benefit them to identify the associated elements which make their story believable. In this case, the local actor leader’s attachment toward society might help this agent to find the relatable element of the sustainability transition story to the emerging society. Indeed, local actors have a significant role in actualize local development (Pennink, 2014) because they may demonstrate the movement leadership and identify the concrete need for change. This advantage can create a coherent feature in their narrative which makes it considerably trustful by the society
(c) Shared social media is online media that allow users to share information and participate in social networking. This media becomes one of powerful communication media with its advantage to spread information in the wide range with less cost. Perception can be shaped by social media (Lyon and Montgomery, 2013). However, within the circular communication, social media information will only be significant for society by including dialogue and engagement (Schulz, 2018). Hence, the type and narrative in social media need to be explored regarding how it may influence local people perception of sustainability transition.
Expectation 2b: The “showing” way of communication influence the sustainability transition perception of local people
18 with a piloting project or another similar project’s success story to be seen and discussed. The visualization of activity determines the judgment and trustworthiness (Yu et al., 2014). The information source shall be the local agents who have higher participation in the piloting project or people who collect the success stories as they have more familiarity with the transition process. This way of communication leads the society to accept the story and hold a good reason to commit the transition (Cawsey et al., 2012).
Expectation 3: possible sustainability transition implication scenarios based on the content in most trusted communication agents
Following the discussion in the session that this research submitted in the NBM conference, one of the major topics is that society might expose to multi-channel communication. This research argued that in the multi-channel scenario case, the most trusted channel and its content would have greater influence in moving initial local perception. Researchers discovered evidence that trust in communication holds a significant role in social learning in sustainability (Zamora et al., 2018; MacKeracher, 2018). Trusted peers indeed have a strong influence in moving people perception (Cawsey et al., 2012). Trust is defined as willingness to take risk (George and Swap, 1982) on doing something new by joining the sustainability transition. Hence, this research investigated the process and possible implication of coexistence content and trust channel in the sustainability transition. This research proposed four possible implications based on influence trusted peers model by Cawsey et al.,’s (2012):
(1) Smooth transition: the state where local people are strongly motivated to implement sustainability transition through the supportive message from the most trusted channel; (2) Underdeveloped transition: the state where local people still lack the understanding and willingness to implement sustainability transition but the most trusted channel continuously to convince local people with supports.
(3) Potential drawback transition: the state where local people perceive to support sustainability transition since the initial gathering, yet the most trusted channel provokes to disregard the initial support
19 Figure 3. Possible sustainability transition scenario implication of the most trusted channel’s content
Table 1. Influence of the most trusted channel (adoption from Cawsey et al., 2012’s model) Type of content in the
most trusted channel
Society’s initial attitude (during awareness stage)
Possible Implication Emerging society’ Transition Perception Description Support towards the
transition
(Supportive content)
Support towards the transition Smooth Transition Very motivated to support the transition
Opposite towards the transition Underdeveloped transition
Initially opposed but might move to support due to new information offered/ persuasion Opposite towards the
transition
(Provocative content)
Support towards the transition Potential transition drawback
20 3. Methodology
3.1 Research Focus and Research Methodology
In this research, the author conducted a case study to investigate the proven concept of how the way of communication influences the sustainability transition perception of local people on the NBM setup. Hence, the research focus will be explained as follow: (1) the role of communication in the cross-country knowledge transfer (from NBM enterprise to local agents); (2) the “telling” and “showing” of communication from local agents to local people. The research also elaborated inherent determinants such as information and condition that are inseparable from the process (with an approach of what-how to change); (3) sustainability transition implication scenarios based on the content of the most trusted agent (supportive or provocative).
Because the research approach is inductive reasoning and emphasizing on how the influence process took place, this research design will naturally use a qualitative methodology. This methodology commonly provides an in-depth analysis to derive an outcome. This research will have semi-structured interviews for all related actors in the framework and do a triangulation with other supporting documents and public shared social media database. Qualitative inquiry can be a powerful tool to support the grounded theory that generated in the fieldwork by having interviews and case study in the real world rather than in the laboratory (Patton, 1990). The research approach is linked with Yin (2014)’s case study research design and methodology. The research will be a single case study with a form of critical case related to the proposed framework and utilize several embedded units of analysis (see the detail in case selection and data collection section)
3.2 Case Selection
21 model has been applied by several prominent researchers namely Gross, Bernstein, and Giacquinta (1971) in Implementing Organizational Innovation and Rivera (2008) by extending Erving Goffman’s sociology theory regarding the management stigma of individual people to the institutional level.
There are four main criteria to select the case following the research expectation: (a) the proven company under cross-country sustainability partnership; (b) the company’s core business model based on the sustainability partnership agreement; (c) the company’s experience on delivering sustainability transition for Indonesia (emerging society) and access to reach all related parties as critical case resource for the proposed framework; (d) actors in the process such as NBM enterprise employees, local agents, and local people who have experience on sustainability transition (more than 2 years). Dutch – Indonesia case study is selected based on the country partnership and commitment to sustainability issue despite their distant cultural differences. This development partnership has been evolved for over 70 years, where the partnership is currently focusing on prioritizing the sustainability issue (Multi-Annual policy framework Dutch – Indonesia, 2017). In fulfilling the second criteria, the New Business Model enterprise is selected based on the sustainability goals priority that has been discussed in the partnership policy framework. Some of company contact numbers are obtained from the booklet of economic mission of Dutch companies to Indonesia 2016. Initial emails are sent out to understand the company project experience and accessibility. After sending an email, an initial skype call is conducted to the project manager to satisfy the third criteria. The interviewees are selected based on the company recommendation and their background in sustainability transition as in the fourth criteria. Due to ethical reason, the company and interviewees identities are anonymized, yet the detailed background will be given (see appendix).
3.3 Data Collection Procedure
semi-22 structured interviews with all related parties in the framework with convergent evidence of supporting documents. Because the case study is on Dutch – Indonesia NBM enterprise and target Indonesia local people, some interviews were conducted in Bahasa (Indonesia language) (including some relevant supporting documents).
Following the research question, the purpose of the study is more in-depth in the process instead of to populate the finding. Within the time constraint, the author conducted semi-structured interviews with the employees regarding related functions within the research framework, local governments (officers and head of division), local actor leader (village leader and community leader) and local people. The author has an opportunity to visit the location where the sustainability transition project is conducted and where local people live as part of triangulation. In light of the ethical issue, the company’s and interviewees’ name will be anonymized, but the background details will be given (see appendix). The interviews will contain an open question to reveal the unexpected findings or information which is still relevant to answer the research question.
The supporting documents and shared social media database are analyzed to strengthen the research quality by triangulation and be a part of a chain of evidence. The author was careful to exercise electronic data database following the internet based ethical issue. All supporting documents source database is recommended and allowed to be accessed by the interviewees, noting that all is public shared documents.
Regarding data collection limitation, the author also realized the threat of reflexivity on semi-structured interview and maintained to be neutral as possible. However, this type of data collection allows the variation to trigger interesting conversation and describe complete interviewee’s experience. Further, the discussion about research limitation will be elaborated in the limitation and future research section.
3.4 Research Analysis Plan
23 analyzing. As generalization might appear, thus, the author attempted to have convergence in the finding by conducting triangulation with multiple evidence.
Figure 4 (a) Research Analysis Plan
Figure 4 (b) Triangulation
3.5 Research Design Quality Judgment Test
Some tests can be established to judge the quality of social research. Research design is a set of logical statement that can be evaluated by certain logical tests (Yin, 2014). Four common tests are conducted to manage the quality of the research will be explained below. Noting that qualitative study is a part of the larger body of social research and the tests have been stated in some research design textbooks (Yin, 2014; Kidder and Judd 1986)
1. Study the secondary literatures and derive proposed framework
2. Conducts interview with the related actors in the framewok and transcribe the interviews.
3. Find keyword, clustering, and develop main finding; Triangulation interviews with supporting documents and shared social media
24 3.5.1 Construct Validity
Critics in qualitative research point out in deriving theoretical framework to research operationalization. Specifically, researchers’ subjective judgment based on their idea proposition becomes a central part of data collection (Flyvberg, 2006). The phenomenon that has been observed might happen as researcher impression only.
In this case, the construct validity might challenge the operationalization of the definition of sustainability transition. This research defines sustainability transition perception as the sense-making process to legitimate the socio-technical transformation in assuming the world respect to the sustainability life. The perception also refers to how the Netherlands and Indonesia consider sustainability as a priority issue. However, the researchers used multiple source evidence (interviews, fieldwork visit, supporting documents, and shared social media) and draft report reviews to increase the construct validity (Yin, 2014). 3.5.2 Internal Validity
The primary concerns in internal research validity are spurious causal relationship and inference making. The issue in this causal relationship is that the influence of certain condition (independent variable) to other condition (dependent variable) might be falsely constructed due to other factor or different influence direction. This concern usually occurred in explanatory research or quantitative research with causal studies. However, although this paper developed deductive reasoning as the early step of the research, the main research objective leads to descriptive and explorative studies.
During inference making, the researcher reason that certain event resulted from the earlier situation is based on the interview and observation. In this case, local people’s sustainability transition is assumed happened after legitimating the need for change from the communication by various channels. This paper conducted explanation building, triangulation, addressing rival explanation (with existing theory) to elevate the internal research validity (Yin, 2014). 3.5.3 External Validity
25 validity. Initial research question construction can be used to achieving external validity (Yin, 2014)
3.5.4 Reliability
The concern in reliability is that the operationalization of a study could not be repeated or the same result could be generated. The main objective of reliability is to reduce error and bias in the study. Some approaches have been done to increase reliability. One, this research has conducted qualitative research protocols based on Yin (2014)’s case study design and method and develop a case study database (link In appendix).
3.6 Ethical Issue in the Research Approach
26 4. Case Analysis and Discussion
The analysis of interviews and supporting documents lead to the finding on how way communication will influence local people of sustainability transition perception, in the case of Dutch-Indonesia NBM enterprises. It derives communication influence in three main parts. First, the knowledge transfer process between developed country to emerging country within Dutch and Indonesia NBM enterprises. Second, the mediating involvement of local agents (with the “telling” and “showing” way) to the local people. The case discussion will be explained with the what - how to approach (based on Cawsey et al. 2012 what and how to change approach). These discussions will be presented in section 4.1, and 4.2 follows the structure in figure 5. This framework in figure 5 has evolved from figure 1 and figure 2 (relate with the research expectation 1 and 2) to correspondent the findings. Third, the study investigated the proven concept of sustainability transition implication scenarios in the case, discussed in section 4.3. The discussion is based on the model of the most trusted channel’s content implication to the sustainability transition, refer to figure 3 and table 1 (relate with research expectation 3).
Case analysis is arranged systematically. The research analysis plan can be seen in figure 4. Each phase represents a certain analytical goal to contribute to the progression of this research theory development (depicted in table 2). The connection between figures can be seen in the previous paragraph and in table 2 at progression theoretical insight row. The data coding will be given in the appendix. The indicative quote(s) from interviewee(s) will be shown in each discussion part (in the bracket and italic version).
Table 2. Stages of process theory development in a qualitative study
(the model taxonomy adopted in the research Haq et al., 2017)
Phase according to figure 4
Phase 1 Phase 2 Phase 3 Phase 4
Analytical goal Identify related actors involved in how Dutch-Indonesia New Business Model influence sustainability perception of Indonesia local people
Focus in illustrating the schematic process (cross country knowledge transfer and local agents’
involvement)
Specify the communication agents and processes’ inherent determinants (depending on what – how to change)
Uncover communication role based on its inherent determinants and proof the possible implication of sustainability scenarios Data source Literature review Initial interview with
manager through Skype; intensive contact through email to identify the related actors in the framework to the case
Interviews all related actors in the framework and triangulation with program evaluation, shared social media, guideline, other related documents
27 Analysis Thematic analysis First level coding to
illustrate the
communication setup process
Second level of coding to have a deeper explanation in communication characteristic by utilizing what – how to approach
Interpretation of the result with the literature background
Progression of theoretical insight
The proposed framework (depicted in figure 1) involves multi-actors
The process is illustrated in Figure 2 and 3. From the earlier stage, the research identifies the stage of knowledge transfer, the “telling” and “showing” way, and the most trusted channel’s content implication
The process is illustrated in Figure 5 by identifying the what – how in each process as inherent determinants
Identify the role of communication as process enabler, define a different function in each phase, (the summary can be seen in table 3) and provide a proven concept of sustainability
transition implication scenarios (case discussion 4.3)
4.1 Cross – country knowledge transfer within Dutch – Indonesia New Business Model The discussion in section 4.1 and 4.2 follows the structure illustrated in figure 5. Each process will determine what – (containing the information and deliverable output) and how (the influence tactic or main activity to support the process). The what – how to change approach follows Cawsey et al. (2012) change management framework. The study suggested that communication support all process where each phase has a different function depending on what and how to change.
Figure 5. The schematic illustration of communication influence local people perception of sustainability transition on Dutch-Indonesia NBM setup
28 The study investigated the communication role in the cross-country knowledge transfer process between Dutch and Indonesia NBM enterprises employees to the selected local agents to answer the first research question. The case analysis will discuss what kind of knowledge that has been transferred, contingencies or factors that need to be considered, and finally how to make the knowledge transfer happen with the role of communication.
4.1.1 WHAT: TBL value creation and supporting resource
Having the vision of “Enhancing society together”, observed Dutch – Indonesia NBM company shows the commitment in multiple value creation beyond the financial aspect. The multiple value creation comprises of a society, ecology, and economy (Elkington, 1998). The social value is created by involving the community and put society empowerment as the main agenda. This outcome is supported by the explanation Director of observed NBM, “…what we have done eventually to increase the community’s standard level of living” and the deliverable mentioned in the company information document of “sound local knowledge”. For the ecology value, this also become the central focus of the company. Once I enter the office entrance, the banner near the receptionist shows the company deliverable of “engineering cleaner water and sustainable strategies”. In addition, the director also mentioned their focus in Indonesia water ecology improvement by stating “…company has focuses in various range of water project in Indonesia such as water treatment, water supply, flood resilience, waste management, water sanitation, hydropower, land acclimation (involve in solving the case of Jakarta sinking)”. In the economic aspect, besides the company obtain revenue from the technology offered, it introduced and assisted one of the economic value-added projects to the society such as Bank Sampah, local housing waste management. The company’s multiple value creations discussed above is the result of cross-country knowledge transfer of sustainability practice to Indonesia.
29 more or less). But, the company supports the employees’ capability growth with global experience. The director of company explained that some top local employees have been sent to the Netherlands and other countries to learn and adopt what they find in Indonesia (“… I have sent some of my teams to learn in the Netherlands and South African, wishing they can learn and adapt it in local context.”). Monitoring platform system that has been developed for the evaluation in one of their projects now being transferred and managed by Indonesia government institution (“..our Nawasystem is initially developed for the monitoring and evaluation the project, now it is managed under PUPR ministry” said the project manager).
Further, knowledge transfer allows an opportunity for the emerging country to adopt the latest sustainability technology directly from a developed country without experiencing the previous evolution. The NBM enterprise director gave an example “…I take one case example of phone evolution; emerging country can jump to adopt the mobile phone quickly and cut some evolution phase, let say classic wired phone where the Netherlands or USA experienced it for quite some years”. In the other hand, emerging country lagging technology can be an opportunity for a developed country to expand the market and obtain exclusive access as firm advantage. However, this is ideal case. Some factors need to be considered will be explained in contingencies part, and the tactics or activities to promote the partnership opportunity will be explained in the How part.
4.1.2 Contingencies: enabler factors
This research tries to dig years of experiences from the interviews with various employee’s function in observed NBM enterprise. Based on the analysis, some contingencies factors are implicitly stated and will be elaborated below:
a. Community advancement
30 development involves activities in maintaining multiple value creation and transferring more sustainable knowledge practices. The advancement scoring based on several matrices that the company defines (such as the availability of a resource, government support, basic infrastructure, the readiness of planning and regulation).
b. Type of sustainability practice and its relatable consequences
Observed NBM practice focus on water and sanitation issue that is strongly related to basic human needs. In this case, the communication and visualization of negative consequences that showed by employees to the society can be perceived well because of its coherence with the necessities. Another type of sustainability practice that far from the basic needs might be hard to be transferred. However, society’s low sense towards the implication of sustainability practice will result in social resistance and lock-in situation.
c. Attention/ project size and resource scale
The interviewee mentioned that the treatment between a large company and a small company could be different. One large company movement might be more visible than a hundred small companies. The country weak monitoring allows this attention gap occurs. Nevertheless, the more attention to be devoted, the more committed to the transition process. However, the bigger transition project will invite complexity, more actors involved, and resource needed.
d. Government and socio character
31 e. Political uncertainty
Sustainability transition is long term multi-dimensional transformation. In the other hand, the government generation period might be shorter than the transformation years needed. The changing government might lead to a different policy of sustainability and delay the transformation. However, the sustainability area that relates to basic human needs with relative limited solution will offer more stability to counter political uncertainty. Differed in charge government might end up choosing that limited solution and continue the existing transformation.
f. Economic gap/ economic factor
Sustainability might be viewed differently depending on region-specific stakeholder preference. One research found Western Europe as a developed region appreciate environmental issue more than Eastern Europe (Brammer et al., 2006). It is understandable because in some sustainability practices charge cost more. Society hardly to start think about sustainability practice if they still seek money to survive life. In some cases, emerging society needs material incentives to legitimate the need for change. Therefore, sustainability practice or project that has economic value added is more favorable.
32 4.1.3 HOW: Communication in the Collaboration and Awareness of change
Dutch – Indonesia NBM enterprise may face conflicting institutional pressure from the Netherlands as home country and Indonesia as local societal expectation. Kostova et al. (2008) propose the company to seek negotiation solution between multinational company and local actors to obtain the legitimacy from locals. The conflicting institution tensions between countries can be reduced by finding cooperative and collaborative solution (Kraatz and Block, 2008). Further, the key to new business model concept is the collaboration of multiple actors to create multiple values (Jonker 2012; Pennink 2014).
Observed NBM enterprise manages the collaboration with locals by internalizing some local employees and establish close partnership with local influencers (local government and local actor leader). The director has sent some excellent local employees to learn outside Indonesia (for instance in the Netherlands and South African). This is part an effort to develop the ability for locals to create creative global solution with sense of local context (in one of company booklet stated… develop local experts with global experience). In addition, the company prefers not to directly communicate to the society due to liability of foreignness and contingencies explained above. Instead, the company had targeted local government as company’s partner to provide sustainable deliverables (such as one sanitation acceleration program consisted local government, local actor, and the company). The company highlights the collaboration success factor includes in advocation and communication, technical and technology, financial, institution and regulation, and civic engagement. Subsequently, local government and local leader also become company’s communication agent that will be explained further in section 4.2.
33 then require local actors’ central role on this partnership (more commitment devoted by local actors) but still assist on developing professional regulation, technology, and recommendation. This assistance can facilitate the knowledge transfer process to local actors. Eventually, local actors will actively conduct public engagement and implement sustainable initiatives.
Interestingly, this collaboration is impactful for emerging country’s sustainability transition with complex and hierarchical government governance such in Indonesia. Government that involved in sustainability transition might vary in term of the focus area and structure level. Layered advocation needs to be done by NBM enterprise employees to the local government agents and local actors. The presence of NBM enterprise facilitates the synergy for different local agents’ backgrounds under one working project unit. Initially, the local government has difficulties in identifying the need for change because government with different focus area tends to have separate goals. “…initially, the national government has partial goals; some focus only the trigger; some only focus on the execution. It seems the process is disconnected when it is presented in the national discussion. The presence of the project can draw the clear root cause, connecting the trigger with the execution, creating synergy for the diverse government background. This will eliminate the egocentric goals…” stated the local government which experiences the project collaboration with NBM enterprise employees. Indeed, the collaboration can integrate these separate goals and draw a clear picture of the expected sustainability transition for local people. Communication then holds the purpose to bring the synergy in the collaboration, such as of informing each parties’ own goal and knowledge, learning others’ goal and knowledge, negotiating the goal and knowledge gap and finally advocating final recommendation to the society or policymaker.
4.2 The process of communication influence sustainability transition
34 including suggested way of communication. The final action is given up to the local agents who know the local context better. The study focuses on local agent’s the “telling” way and “showing” way of communication. The what – how approach is also structured in this way of communication. Each local agent, such as local government, local actor leader, social media writer will be explained separately in the “telling” way because they have different capacity and capability. Yet, the “showing” way will focus on the one local piloting project team.
4.2.1 ‘Telling’ way of communication
Based on interviewees, both NBM enterprise employees and agents, they might prepare the material to support the sustainability transition. However, the best way to convince the society is using the power of story. The empirical research by the company is packaged as narrative to make it understandable “… we package the data findings into the story to make non-technical audience (society) understand. The story help to interpret the significant meaning behind those numbers” stated one of communication specialist of the company.
Indeed, storytelling is the way of communication that helps people to comprehend complex information (Fisher, 1984). This research categorized this way of communication as “telling way” with the back of Narrative Paradigm Theory (“NPT”). The study suggested each agent has different narrative depending on its what-how to change
4.2.1.1 Local government (WHAT: regulation; HOW: policymaking and seminar)
In this research focus to the local government who is in charge of certain region, within the line of the process in policy making, and has access to the society. Our interviewees stressed the local government’s commitment is imperative for the country sustainability transition. The government can utilize its authority to decide regulation and manage the budget to build infrastructure (WHAT component).
35 sustainability infrastructure. The authorized policy can also be program priority for local government at the micro level.
The company also pointed out that local government should be aware of their community sustainability issue and society involvement before formulating regulation and infrastructure budget. This will involve a tiered or multilevel advocation from NBM and fieldwork employees to ensure the beneficial policy for society (considering the complex government structure in Indonesia). Finally, this sustainability authorized regulation and infrastructure planning (as what to change) need to be communicated to the society to make use of it.
Local government’s narrative is not only to oblige society to do or make use of the authorized regulation and established infrastructure but also to promote its greater benefits to the community. Policy approval, guideline documents, and banners can be silence promotion tools. Seminar, gathering, launching event can be an activity to facilitate the discussion if any inquiry from society regarding new infrastructure or policy approval (HOW component). Local government stated, “…we communicate the policy both formally and informally. We have regular meeting in the forum. However, in every chance, we also communicate it informal way if we visit the location. Regarding community request or demand, we match it with the budget we have.” In the guideline, local government also has regular evaluation for the communication program implication on changing perception or behavior from the society after the implementation of the policy.
36 4.2.1.2 Local actor leader (WHAT: civic engagement; HOW: dialogue and forum)
This research defines local leader as the leader who has strong influence in moving perception of local people considering their action and behavior. They also can strengthen existing relationship with the community and expand their new network. This research considers community leader and village leader as local actor leader. Community leader is the activist who has strong concern and vocal to fight for certain issue and community development. Village leader is the formal leader role who is selected by local people to lead and direct for the growth of the village. Both have same characteristic on having central position in influencing local people.
Local actor leader who has openness and readiness to change can comprehend sustainability transition better. Seeing their central position in society, they can influence to build readiness to change to other locals. The connection between local actor leader and other locals can establish civic engagement. Local actor leaders can spread the legitimacy of change to others to ensure project continuity. The purpose of local actor’s narrative to the society is not only to aware of the sustainability issue but also willing to engage and maintain the continuity of the transition (WHAT component).
The personal connection between local actor leader to the society differ from other agents. This is needed to build civic engagement in sustainability transition. One community leader expressed her experience when recruiting members (from none to be more than 200 members) to join the sustainability movement through one-on-one personal approach or gathering activity, “…initially I come to the local people house one by one, explaining our activity and why we exist. I also conducted regular meeting with existing members who discuss existing members and the possibility to grab more members…. And the best to gather more local people are before Lebaran (Moeslim celebration) because there is an incentive to come (Lebaran gift) In the gathering, then we engage more local people”
37 sin (dosa jariyah). Nonetheless, what we have done now will affect our grandkids life.”. Village leader often communicates this narrative to the praying area (mosque/ musholla) after the religious gathering. Community leader stated that this narrative is more effective than explain to them with the empirical data where not all local people can comprehend. This attempt to connect with the religion is also explained in the NBM communication plan video recommendation. Another narrative that can be built is using the relevant value that grows in the community, such as honesty conception. The local actor often emphasized honesty value during his visit and any forum that involve society. “…I often emphasized to the society to act and speak with honesty. For example, any, I ask them to speak and be honest with me if any initiative that perceived as burden or not work as it used to be.”
The way local actor leader to relate sustainability narrative with the religion, belief, and relevant society value is telling way of communication and creating dialogue with the society (HOW component). Dialogue is a two-way communication that can foster society’s openness and to clarify misperception. Those relatable narratives become a trigger to local people more open, for instance, by constantly emphasizing honesty values or telling small minded consequences based on the real stories to make society relatable. Regular training and discussion can facilitate the frequent dialogue process. The connection can be built by discussing in a regular forum with certain topic interest. This way of communication has role mainly to motivate the society to step into the transition process and to clarify any society’s misconception or ambivalence understanding.
4.2.1.3 Social Media (WHAT: exposure; HOW: online forum and mass attention)
38 YouTube, Facebook page), and blogging (e.g. Facebook status, Twitter, BlogSpot, and website). Although each site might have different communication function and deliverable, they still have same focus of what to change in wider information exposure and transparency (WHAT component).
Special interest forum sites tend to focus on the need for information exposure in certain issue. The Forum become the media of the collaboration that consist the NBM enterprise employees, communication agents, and some local representative (in WhatsApp group). The group is used to share sustainability activity, members’ point of view, and discussion materials. The narrative used in the forum should have the agreed language between members. This can be a literal narrative language, for instance, Indonesian/local language, and functional, for instance, fieldwork language. “…this forum can integrate the different background members but with the same interest. However, we prefer not to include the high function of government in the group to have the same language and view on the implementation side”.
The group will also work for the sustainability transition with active and closeness member. This telling way of communication is utilizing the power of dialogue but in an online platform. This type of communication will matter for civic engagement and collaborative platform. The advantage of this forum is cheaper and faster, despite the weakness of high dependence of the member reactivity and potential misperception in online communication. Then, this communication has a role in informing the sustainability news and updates, in learning other member reaction, and in motivating any resistance.
39 purpose to have attention of certain people who follow my social media and eventually support my program”. The sharing activity can be lesson learned materials for other community. We also observed that media sharing sites can capture the complaints, critics, and resistance of the society and tag the related party to resolve the issue (and build social shamed if the issue still appears). “… once local people took picture and wrote the accumulated garbage in certain area (one of sustainability issue) then tagged it to local government Facebook. The head of division saw that and command to resolve the issue and re-tagged them when the issue has done to be resolved”.
Blogging works better for providing program evaluation notes or uploading the long narratives and story. The employee with journalist specialist role conveyed the idea of narrative in blogging media with attractive title and explanatory content with 5W+1H (who, when, where, why, what, how). “…we wrote attractive title such as From Garbage to Gold. In the content, we frame the news with 5W+1H.” The blogging link can be shared in the social media with the teaser of the attractive title. An attractive title that catches local people attention can lure readers into opening the detail content in blogging media. The knowledge management specialist expressed the idea to record and document the process is needed to be a benchmark in the future project. “…we develop the structure framework and factsheet so that in the future, we do not waste more money to re-inventing the will. Future project can learn from the narrative that we write with evidence based on our current fieldwork.”
40 be controlled with the active presence of communication agents to clarify the false news. The rejection from society happened is more caused by low understanding of the sustainability context. The existence of special forum interest can help to create dialogue and clarify misperception. This telling way of communication in social media has a role in informing the personal opinion or expression and potential sustainable strategies, as well as to learn the responses through the number of likes, viewers, and comments that left in the posted media or blog.
4.2.2 ‘Showing’ way of communication (WHAT: commitment; HOW: Piloting project)
The showing way of communication has a focus on communication strategy with making use of pioneering or piloting project to gain commitment in the transition initiatives, backed by the theory of Seeing first strategy (Cawsey et., 2012; Mintzberg, 2001). Based on the observation in interviewees’ answers (NBM employees) and document analysis, the company focuses on the selected nine provincial areas (with 3 – 4 cities as a piloting project). People show more commitment after seeing the real sustainability transition from the piloting project. This way of communication will deliver message by showing the piloting project result. This can be an attempt to formulate a creative solution and best practice despite limited resource that can be the benchmark in the future expansion or project.
41 communication agents, and facilitators that can inspire and guide them with a new solution. “…Initially, the platform is developed with the purpose only to store the empirical database for analyzing the recommendation. Now, it is extended as a collaborative and capacity building platform.” By seeing the real implementation of the sustainability transition in the piloting project and collaborative platform (HOW component), this strategy can gain more commitment from the local people because they can see the positive impact of the sustainability transition.
This way of communication has a role in informing and learning the real sustainability case through the piloting project documentation and success story sharing. Many elements needed to develop the best and creative solution. “… piloting team always has to be innovative to develop the sustainability solution that impactful for the society because this will a benchmarking program.” This communication involves across borders to collaborate the thinking and develop the best practice guideline.
To recap the case analysis and discussion in point 4.1 and 4.2, the study composed the summary of inherent determinants cross country knowledge transfer and local agents’ involvement (that has been explained in figure 1, 2, and 5). Table 3 showed the grounded theory, the summary of conditions, and well-structured final reflection than previous figures. Relating to the research expectation 1 and 2, communication is confirmed to become an enabler for both processes. The specific role of communication depends on other determinants that can be seen in table 3 or the discussion in 4.1 and 4.2.
Table 3 Summary of inherent determinants of cross-country knowledge transfer and local agents’ involvement
Cross-country knowledge transfer
Local information delivery (through local agents mediating involvement) The “Telling” way The “Showing” way HOW Grounded theory Collaborative and
Cooperative solution (Kostova et al., 2008; Kraatz and Block, 2008)
Narrative Paradigm theory (Fisher, 1984) Seeing First Strategy Theory (Mintzberg, 2001; Cawsey et al., 2012)
Source and Facilitator
Dutch – Indonesia New Business Model Enterprise
Channel (sender) Dutch – Indonesia New Business Model Enterprise employees
Local government
Local leader Social Media: special interest forum, media sharing sites, blogging
(mix) Local project team members (project through piloting experimenting, prototyping)
