No abstract

Governance practices (GP) depict various conceptual designs, yet there are still limited investigations on how GP can influence the performance of the co-operatives. This signified that the most excellent practices from corporate governance literature might not be relevant to co-operatives because they have dual-pronged economic and social objectives for their members. In the case of the Malaysian palm oil sector, the independent oil palm smallholders or growers are encouraged to establish a co-operative to manage their farms and economic activities while finding a solution to the local community's contemporary conundrums. However, the oil palm smallholders are often neglected in the palm oil sector's complex value chain due to the remoteness of smallholders from farm knowledge and training infrastructure, and poor farm management. Realising these challenges, the oil palm cooperatives need to implement a comprehensive GP to manage their agricultural activities. Consequently, this study aims to examine the GP as a second-order construct to predict the performance of oil palm co-operatives. Data was obtained from board members of oil palm co-operatives and then analysed using partial least squares structural equation modelling (PLS-SEM). As per our findings, GP is validated as a second-order construct comprised of three crucial dimensions, namely, responsibility, management, and audit and control. Further, the results confirmed that GP had a positive and significant influence on co-operative performance. The contribution of this study is to guide the policymakers and co-operatives' managers to implement the palatable GP that will lead to greater performance of the cooperatives.

Oil palm (Elaeis guineensis) has been widely used in various products, namely, food, fuel, feed, and pharmaceuticals (4Fs), ultimately cementing the significant roles of the palm oil sector in Malaysia’s economic growth, extensive rural development, political stability, and now directly in sustainable development agenda. In the context of the palm oil sector, smallholders significantly contribute to almost 30% of the total oil palm planted areas in Malaysia. However, the participation of oil palm independent smallholders (OPISH) has remained limited and far behind compared to private business entities in achieving greater sustainability. Due to the unforeseeable global trends and rising public concern over this sector’s sustainability issues, smallholders are now urged to produce certified sustainable palm oil. These issues have motivated this systematic literature review to be undertaken by critically analysing existing studies on sustainability efforts implemented by the smallholders according to the PRISMA (Preferred Reporting Items Systematic Reviews and Meta-Analysis) guidelines. As per the findings of this systematic review, four main themes emerged: land settlement schemes, agricultural policy and strategies, heterogeneity of the smallholders, and sustainability certifications. The theoretical implication of this study is that these crucial themes are highly relevant in providing a foundation for a conceptual framework that portrays a complete picture of holistic sustainability practices amongst OPISH. Concerning practical implication, these identified themes provide significant insights in designing effective strategies and specific incentives as the palatable solutions for OPISH to implement sustainability practices that will transform the palm oil sector towards a sustainable future.

Sustainability-oriented Practices (SOP) is a novel theme in the developing countries, particularly in the context of oil palm cooperatives. However, limited knowledge is observed about the achievements of sustainability agenda in oil palm cooperatives. Oil palm cooperatives are democratically controlled and voluntarily member-owned business to assist smallholders in managing their oil palm farms. This study concentrates on oil palm cooperatives because of the numerous sustainability conundrums, such as deforestation, and biodiversity endangerment, associated with this sector, and the dearth of the holistic SOP that applies to the smallholders to mitigate these issues. Consequently, the hierarchical component model of SOP is not properly proven, and this warrants the crucial need for a comprehensive method and homogenous classification of measures. This study aims to estimate and validate the SOP of oil palm cooperatives by confirming SOP as a higher-order component in the context of the Malaysian palm oil sector. Data was obtained from 185 board members of the oil palm cooperatives. Consequently, this data was analysed using confirmatory composite analysis (CCA) following a visible trend in applying partial least squares structural equation modelling (PLS-SEM). Substantial results were drawn from the CCA, therefore justifying the higher-order component of SOP. The first and second level reliability and validity assessment revealed that oil palm cooperatives implemented SOP, with varying levels of consideration to social, economic, and environmental dimensions. Environmental dimension emerged as the least critical, while the social dimension is the most prioritised. This study contributes to the sustainability, cooperative, and palm oil sector literature by presenting the earliest studies of its kind that focus on sustainability of oil palm cooperatives using a hierarchical component model. This study shed new light on the phenomena of sustainability orientation that portrays SOP as pertinent to enhance the resilience of the oil palm cooperatives.