The Malaysian palm oil industry is well known for the social, environmental and sustainability challenges associated with its rapid growth over the past ten years. Technologies exist to reduce the conflict be-tween national development aims of economic uplift for the rural poor, on the one hand, and ecological conservation, on the other hand, by raising yields and incomes from areas already under cultivation. But the uptake of these technologies has been slow, particularly in the smallholder sector. In this paper we explore the societal and institutional challenges that influence the investment and innovation decisions of micro and small enterprise (MSE) palm oil smallholders in Sabah, Malaysia. Based on interviews with 38 smallholders, we identify a number of factors that reduce the smallholders' propensity to invest in more sustainable practices. We discuss why more effective practices and in-novations are not being adopted using the concepts of, firstly, institutional logics to explore the internal dynamics of smallholder production systems, including attitudes to sustainability and innovation; and, secondly, institutional context to explore the pressures the smallholders face, including problems of access to land, labour, capital, knowledge and technical resources. These factors include limited access to global market information, corruption and uncertainties of legal title, weak economic status and social exclusion. In discussing these factors we seek to contribute to wider theoretical debates about the factors that block innovation and investment in business improvements in marginal regions and in marginalised groups

PurposePrice satisfaction is an influential factor in competitive performance and business success. Strong price satisfaction enhances and sustains high quality business relationships, leading to improved profits for chain participants. The purpose of this paper is to explore the dimensions of price satisfaction in the context of the Malaysian dairy industry. The aim is to determine which dimensions of price satisfaction affect relationship performance between Malaysian dairy producers and the dairy processers who purchase their milk.Design/methodology/approachIn total, eight hypotheses are tested using partial least square methods on survey results from 133 dairy producers in Malaysia.FindingsThe study results suggest that relative price, price‐quality ratio and price fairness influence producers' loyalty and improved business relationship performance.Practical implicationsTo achieve long‐term, sustainable business relationships involving consistent high quality supplies, milk buyers need to understand and capture the price satisfaction dimensions.Originality/valueThe paper provides insights into the important linkages between price satisfaction and business performance in an agriculture industry.

Purpose -Research on buyer-seller relationships in the agricultural sector receives little attention. A growing body of evidence suggests that strengthening buyer-seller relationships fosters more efficient supply chains. Much of the long-term relationship literature tends to treat suppliers as a homogeneous group when identifying motivations, strategies and incentives to enhance the quality of buyer-seller relationships. This article aims to explore the role of long-term relationships between buyers and sellers in Malaysia's dairy industry, taking into consideration the heterogeneous nature of producers. Design/methodology/approach -The study examines variation in relationship quality (trust, satisfaction, and commitment), loyalty and price satisfaction dimensions, using data from a survey of 133 dairy producers. Findings -Cluster analysis suggests two well-defined groups differing in terms of demographic characteristics and relationship perceptions about their buyers. Practical implications -The study results highlight ways milk buyers can develop and promote more appropriate and efficient marketing strategies with milk producers. Originality/value -This study provides evidence of producer relationship segmentation in an agricultural industry of an emerging economy.

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