Correlation between Respect for People, Continuous Learning and improvement and Process and Result Driven are shown in **Table 6 and Table 7**. The data obtained was analyzed by using Statistical Package for Social Science (SPSS) software version 13. Correlation method was used where correlation is a measure of relationship involving variables Field. **Table 6** and **Table 7** show a matrix that is displayed giving the correlation between the three variables. For the January 2007correlation coefficient 0.587 between Respect for People and Continuous Learning and Improvement is 0.456, and the significance value of this coefficient is 0.001. But for December 2007, the values become 0.129, and significance value is 0.202 while the correlation coefficient between Respect for People and Process and Result Driven is 0.526 with the significance value is 0. But for new result it is 0.101 and the significance value is 0.258.last but not least, correlation coefficient between Continuous Learning and improvement and Process and Result Driven is 0.193 with the significance value is 0.111. For new result is 0.310 and 0.020.

Table 7. Correlation between Factors In December 2007

Table 8. Index Value of Lean Behavior In January 2007 and December 2007

#### **11. Success of people development system in case study company**

The importance of problem solving capabilities of every employee in implementing lean process management to make the improvement in lean behaviors is evident as depicted by the real life data of kitting department as the company case study.

Enhancing Productivity Through Lean Behavior 313

waste for company is the waste of space which is 39, the second one is time waste at 21, and the lowest waste is transportation which is at 5. Without classification of any wastage into performance measurement, no monitoring can be made and no problem solving can be done to reduce the waste, where the impact is the failure of lean process management implementation A.P. Puvanasvaran et al (2008). It indicates that the employees of the company have capabilities to solve waste problem using the performance measurement.

Fig. 7. Type of Wastage Eliminated for Year 2007.

Fig. 8. Lean Tool and Techniques Use for Year 2007.

#### **11.1 Idea generated and level of involvement**

Many studies focus mainly on the creative or idea generation stage of problem solving. In this context, employees can help to improve business performance through solving problem, such as generating ideas and use them as building blocks for new and better products, services and work processes Joreon. P.j.de.long (2007). From the graph shown below, every week at least one idea had been generated in kitting department, and the highest is 5 ideas generated per week. In past one year, a total of 139 ideas have been generated .It is proved that kitting department proactively and continually sought ideas to solve problems, indicates that employees have the capability to solve problem to become a central tenet of lean manufacturing best practice Kerrin (1999).

The employee involvement is categorized according to three main levels which are top, middle and bottom management. The **Figure 6** below shows the level of involvement of employees by generating ideas for the year 2007. The highest contribution is coming from bottom level which is 38 and followed by middle level with 12 to top level which is 2. Besides this, there is also a combination level involvement in generating ideas. Bottommiddle level is 52, middle-top is 35 and bottom-top is 1. Furthermore, total idea generated for group combination level is 87 and single group level is 52. The percentage for combination level is 63% for total ideas generated and 3 type levels is 37%. However if we compare 2 groups, the result shows that total idea generated by group combination level is 35 more than single group level. Thus, the result indicates the teamwork of bottom; middle and top management in both sharing and applying knowledge for generating ideas in solving problems that are important Delbridge et al (1998).

Fig. 6. Level of Employee's Involvement for Year 2007

#### **11.2 Total of wastages**

The graph at **Figure 7** gives us an idea about type of wastages identified at the kitting department, where it is classified into 9 categories. It is obviously noted that the highest

Many studies focus mainly on the creative or idea generation stage of problem solving. In this context, employees can help to improve business performance through solving problem, such as generating ideas and use them as building blocks for new and better products, services and work processes Joreon. P.j.de.long (2007). From the graph shown below, every week at least one idea had been generated in kitting department, and the highest is 5 ideas generated per week. In past one year, a total of 139 ideas have been generated .It is proved that kitting department proactively and continually sought ideas to solve problems, indicates that employees have the capability to solve problem to become a

The employee involvement is categorized according to three main levels which are top, middle and bottom management. The **Figure 6** below shows the level of involvement of employees by generating ideas for the year 2007. The highest contribution is coming from bottom level which is 38 and followed by middle level with 12 to top level which is 2. Besides this, there is also a combination level involvement in generating ideas. Bottommiddle level is 52, middle-top is 35 and bottom-top is 1. Furthermore, total idea generated for group combination level is 87 and single group level is 52. The percentage for combination level is 63% for total ideas generated and 3 type levels is 37%. However if we compare 2 groups, the result shows that total idea generated by group combination level is 35 more than single group level. Thus, the result indicates the teamwork of bottom; middle and top management in both sharing and applying knowledge for generating ideas in

The graph at **Figure 7** gives us an idea about type of wastages identified at the kitting department, where it is classified into 9 categories. It is obviously noted that the highest

**11.1 Idea generated and level of involvement**

central tenet of lean manufacturing best practice Kerrin (1999).

solving problems that are important Delbridge et al (1998).

Fig. 6. Level of Employee's Involvement for Year 2007

**11.2 Total of wastages**

waste for company is the waste of space which is 39, the second one is time waste at 21, and the lowest waste is transportation which is at 5. Without classification of any wastage into performance measurement, no monitoring can be made and no problem solving can be done to reduce the waste, where the impact is the failure of lean process management implementation A.P. Puvanasvaran et al (2008). It indicates that the employees of the company have capabilities to solve waste problem using the performance measurement.

Fig. 7. Type of Wastage Eliminated for Year 2007.

Fig. 8. Lean Tool and Techniques Use for Year 2007.

Enhancing Productivity Through Lean Behavior 315

In general, lean tool for kitting department can be categorize to 9 types as shown in **Figure 8**, such as five S, total productive maintain, Kaizen, visual stream map, visual indicator, just in time, and standard work chart. The most common tool used by kitting department is TPM, which is 62 times, followed by 5s, 55 time and mean values of using lean tool is 21 times. In the past one year, the kitting department total used 189 times of lean tool. In order to introduce lean thinking within manufacturing environment, the philosophy relies on the identification and elimination of the waste problem, which have effectively targeted and applied the various lean tools B.J. Hicks (2007). Thus, the frequency of employee using the lean tool indicates employee understanding identification and elimination of waste

KPI is an important element that enables the achievement of vision, mission, core value, strategy, and the personnel objective for people development is crucial. Achievement of KPI shows the evidence of people involvement to drive high performance to gain stakeholder and customer satisfaction. Monitoring on each performance, measurement and countermeasurement taken to solve any problem occurring have contributed to the achievement of

The **Table 10** shows total monthly man hours percentage of Overtime at kitting department has set the limit to be below 12% for the year 07. During PDS implementation, overtime was controllable all the time; not even a month exceeded the limit of overtime, which eventually gave a value of 11.5% for the whole year. It indicates that the company has saved considerably on labors cost in the past one year. The cost saving is due to employee success

**12. Lean tools used in problem solving and productivity enhancing**

problem. In deduction, the employees have capability of problem solving.

in lowering the stop time for the machine DCS 1, DCS 2, DCS 3.

**13. KPI achievement**

Table 10. KPI Achievement.

KPI.

#### **11.3 Cost saving**

Cost saving is an important standard to indicate the problem solving capability of the organization. The aim of lean manufacturing is elimination of waste in every area of production and includes customer relations, product design, supplier networks, and factory management. To meet the objectives of saving cost, Womack and Jones (1996). Kitting department ran a Kaizen Project in 2007, and the total amount of saving for reduces wastages in past one year is RM1, 952,617.98. Thus, achievement of cost saving for company indicates employee had contributed most of the solutions to solve the problem of waste. So, it can be construed that problem solving capability of employees actually improved significantly. The **Table 9** indicates total cost savings of the kitting department with the reference to their kaizen project generated form the problem solving activities.

Table 9. Continuous Improvement Projects for the Year 2007 and 2008.

#### **12. Lean tools used in problem solving and productivity enhancing**

In general, lean tool for kitting department can be categorize to 9 types as shown in **Figure 8**, such as five S, total productive maintain, Kaizen, visual stream map, visual indicator, just in time, and standard work chart. The most common tool used by kitting department is TPM, which is 62 times, followed by 5s, 55 time and mean values of using lean tool is 21 times. In the past one year, the kitting department total used 189 times of lean tool. In order to introduce lean thinking within manufacturing environment, the philosophy relies on the identification and elimination of the waste problem, which have effectively targeted and applied the various lean tools B.J. Hicks (2007). Thus, the frequency of employee using the lean tool indicates employee understanding identification and elimination of waste problem. In deduction, the employees have capability of problem solving.

#### **13. KPI achievement**

314 Theoretical and Methodological Approaches to Social Sciences and Knowledge Management

Cost saving is an important standard to indicate the problem solving capability of the organization. The aim of lean manufacturing is elimination of waste in every area of production and includes customer relations, product design, supplier networks, and factory management. To meet the objectives of saving cost, Womack and Jones (1996). Kitting department ran a Kaizen Project in 2007, and the total amount of saving for reduces wastages in past one year is RM1, 952,617.98. Thus, achievement of cost saving for company indicates employee had contributed most of the solutions to solve the problem of waste. So, it can be construed that problem solving capability of employees actually improved significantly. The **Table 9** indicates total cost savings of the kitting department with the

reference to their kaizen project generated form the problem solving activities.

Table 9. Continuous Improvement Projects for the Year 2007 and 2008.

**11.3 Cost saving**

KPI is an important element that enables the achievement of vision, mission, core value, strategy, and the personnel objective for people development is crucial. Achievement of KPI shows the evidence of people involvement to drive high performance to gain stakeholder and customer satisfaction. Monitoring on each performance, measurement and countermeasurement taken to solve any problem occurring have contributed to the achievement of KPI.

The **Table 10** shows total monthly man hours percentage of Overtime at kitting department has set the limit to be below 12% for the year 07. During PDS implementation, overtime was controllable all the time; not even a month exceeded the limit of overtime, which eventually gave a value of 11.5% for the whole year. It indicates that the company has saved considerably on labors cost in the past one year. The cost saving is due to employee success in lowering the stop time for the machine DCS 1, DCS 2, DCS 3.

Table 10. KPI Achievement.

Enhancing Productivity Through Lean Behavior 317

[4] Anon, 1997. "Case study: Guiding cultural change at Motorola", Management

[5] Bhasin, S. and P. Burcher, 2006. "Lean viewed as a philosophy", Journal of

[8] Coakes, S.J., 2005. SPSS: Analysis without Anguish-version 12.0 for Windows, John

[9] Comm, C.L., 2005. "A case study in applying lean sustainability concepts to

[10] Delbridge, R., 1998. "Life on the Line in Contemporary Manufacturing," International

[11] Emiliani, M.L. and D.J. Stec, 2004. "Leaders lost in transformation", Leadership and

[14] Hicks, B.J., 2007. "Understanding and eliminating waste" international Journal of

[15] Jeroen, P.J. and N.D.H. Deanne, 2007. "How leaders influence employees' innovative

[16] Kerrin, N., 1999. Managing Innovation and Change: A Critical Guide for Organizations,

[17] Liker, J.K., 2004. The Toyota Way: 14 Management Principles from the World's Greatest

[18] Nesan, L., Jawahar and D. Holt Gary, 2002."Assessment of organizational involvement

[19] O'hEocha, C., 2000. "Case studies: A study of the influence of company culture,

management at Cooke Brothers Ltd", The TQM Magazine, 12.(5): 321±330. [20] Orr, C., 2005. "Lean Leadership in Construction", Management of People and Team,

[22] Sanjay Bhasin & Peter Burcher, 2006. "Lean viewed as a philosophy", Journal of

[23] Womack, J.P., D.T. Jones, 1996. "Lean Thinking", Emerald Group Publishing Studies,

http://www.findarticles.com/p/articles/mi\_m0FWH/is\_6\_113/ai\_76445159

in implementing empowerment " , Integrated Manufacturing Systems, 13/4, pp:

communications and employee attitudes on the use of 5Ss for environmental

[12] Emiliani, M.L., 1998. "Lean behaviors", Management Decision, 36/9, pp: 615– 631. [13] Field, A., 2005. "Discovering Statistics Using SPSS", Sage Publications, pp: 107.

universities", International Journal of Sustainability in Higher Education, 6(2): 134-

Journal of operation & Production Management, Oxford University Press,

[6] Cleary, T. (1989), Zen Lessons – The Art of Leadership, Shambhala, Boston, MA.

pp: 29-44.

146.

Oxford.

information Management.

Manufacturer. McGraw Hill: New York.

Thomson, London.

Proceedings IGLC-13.

(accessed on June 2001).

30(5): 739-58.

201-211.

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Wiley & Sons Australia. Ltd, Queensland.

Manufacturing Technology Management, 17(1): 56-72.

[7] Cleary, T. (1996), The Human Element, Shambhala, Boston, MA.

Organization Development Journal, 26(5): 370-387.

behavior. Emerald Group Publishing Limited, pp: 761-771.

[21] Ronald, M. Becker, 2001. "Automotive Manufacturing and Production " ,

Manufacturing Technology Management, 17 (1): 56-72.

Journal of Productivity, National Productivity Centre, Petaling Jaya, Malaysia, 25

The table also shows the achievement for the value scrap is 1.97% which achieved the goal of 2.6%. The reason why the value is achieved is because the employees use the PDS methods to solve many scrap problems such as material dry and ply damage for the whole year. Complaints on product produce from internal and external customer shows null. It shows that quality of kitting department undergone significant upgrading due to problem solving capability of employees.

The Kitting department of the Company has gained benefits from many elements that have not been monitored before, the implementation of PDS. Wastages have reduced dramatically. Thus, the achievement KPI proves that productivity and problem solving capability has increased.

#### **14. Conclusion**

The purpose of this project has been to evaluate the improvement for the lean behavior possessed by the company in past one year. It reflects the enhancing productivity through lean behavior. The result show lean practices had been making improvement of the company in lean direction and important of problem solving capabilities in eliminating waste and saving cost thus, enhancing productivity. The results have provided support to the two proposed hypotheses. Besides that, evidence was found to support the relation between improvements of kitting department with problem solving capability on enhancing productivity through lean behaviors of employees in the organization.

The main findings show that the company is improving in past one year. Initial result of the kitting department was in moderate level stage to become lean, but result at the end of the year showed that they had nearly meet the high level stage of lean they need to keep their efforts in order to have productivity success in lean manufacturing implementation. It is also helpful to the company to recognize the importance of increased problem solving capability and productivity enhancing for employee to eliminate waste by adapting lean behaviors. In short, we are all looking toward "Better Productivity Through Better Lean Behavior".

#### **15. References**

The table also shows the achievement for the value scrap is 1.97% which achieved the goal of 2.6%. The reason why the value is achieved is because the employees use the PDS methods to solve many scrap problems such as material dry and ply damage for the whole year. Complaints on product produce from internal and external customer shows null. It shows that quality of kitting department undergone significant upgrading due to problem

The Kitting department of the Company has gained benefits from many elements that have not been monitored before, the implementation of PDS. Wastages have reduced dramatically. Thus, the achievement KPI proves that productivity and problem solving

The purpose of this project has been to evaluate the improvement for the lean behavior possessed by the company in past one year. It reflects the enhancing productivity through lean behavior. The result show lean practices had been making improvement of the company in lean direction and important of problem solving capabilities in eliminating waste and saving cost thus, enhancing productivity. The results have provided support to the two proposed hypotheses. Besides that, evidence was found to support the relation between improvements of kitting department with problem solving capability on enhancing

The main findings show that the company is improving in past one year. Initial result of the kitting department was in moderate level stage to become lean, but result at the end of the year showed that they had nearly meet the high level stage of lean they need to keep their efforts in order to have productivity success in lean manufacturing implementation. It is also helpful to the company to recognize the importance of increased problem solving capability and productivity enhancing for employee to eliminate waste by adapting lean behaviors. In short, we are all looking toward "Better Productivity Through Better Lean

[1] Puvanasvaran, A.P., B.H. Tan, M.H.M.A. Megat, Tang S.H, Muhamad, M.R, A.M.S.

[2] Puvanasvaran, A.P., M.H.M.A. Megat, Tang S.H, Muhamad, M.R, A.M.S. Hamouda,

[3] Puvanasvaran, A.P., M.H.M.A. Ooi, Megat, S.H. Tang, M.R. Muhamad, A.M.S.

Hamouda, 2008c. "Degree Of Leanness And Managerial Commitment In An Aerospace Company" Journal of Statistics and Management System, Vol. 11, No. 4,

2008a. "A Review of Problem Solving Capabilities in Lean Process Management" American Journal of Applied Sciences Vol.5 No. 5, 2008,ISSN 1546-9239 © 2008

Hamouda, 2008b."Lean Behavior Among Employees In Aerospace Company"

productivity through lean behaviors of employees in the organization.

pp. 653–673, ISSN 0972-0510, Taru Publications, India.

Science Publications, pp: 504-511.

solving capability of employees.

capability has increased.

**14. Conclusion**

Behavior".

**15. References**

Journal of Productivity, National Productivity Centre, Petaling Jaya, Malaysia, 25 pp: 29-44.

[24] Worley, J.M. and T.L. Doolen, 2006. "The role of communication and management support in a lean manufacturing implementation", Management Decision, 44 (2): 228-245.943

**16**

*México*

**Organizational Sustainability:**

*Núcleo Universitario Los Belenes CUCEA, Zapopan, Jalisco,*

José G. Vargas-Hernández

*National System of Researchers of Mexico,*

**The Case of Handcrafts Micro-Business in**

*University Centre for Economic and Managerial Sciences, University of Guadalajara,*

The new conditions of globalization underlie life conditions and the importance of a generational future as a component of competitiveness. What constitutes globalization is the interaction that changes the scenarios for the individuals, organizations and society, who are constantly hounded by contradictory forces and uncertainties. The appropriate use of natural resources can meet present and future interests, having a change in current practices. In comparison to the economic rationality´s logic that drives the functioning of organizations and has as a lead obtaining maximum present return, before that if natural resources yield greater benefit under their exploitation than taking care of them, they are sacrificed. Thus, the immediate economic profit is the current enemy of the environment. The ecological proposal in organizations, widen its model of interactions which can integrate the environmental paradigm to the organizational system. An approaching to sustainability of organizations is affected by the combination of ambiguous environmental economic policies, the abrupt adoption of production technologies and market practices. Sustainability in business organizations as an implementation strategy of process reengineering and the adoption of production technologies are oriented toward avoiding

Lacking acceptance of the role that business organizations play in sustainability, it influences the global debate questioning real causes of pollution which poses safeguards to organizations and justify poverty as the main cause generating environmental degradation. It also suggests as a consequence of deterioration the inadequate economic policies that allow for business actions less friendly with the environment. This paper sets as aims, firstly to determine the level of organizational sustainability for the environmental and economic development of cutting treatment and exploitation activities of the grass called *tule thypa spp* from Zapotlán Lake. Similarly, the paper pretends to analyze potentialities and economic benefits derived from a marketing orientation of international business in the making of art craft out of *tule* and *palmilla* (a kind of palm) that growth spontaneously in Zapotlán Lake. To achieve these objectives, it is drawn a conceptual, theoretical, methodological and

waste materials, recycling trash and eliminating toxics.

**1. Introduction**

**Southern San Sebastian, Jalisco, México**

### **Organizational Sustainability: The Case of Handcrafts Micro-Business in Southern San Sebastian, Jalisco, México**

José G. Vargas-Hernández *National System of Researchers of Mexico, University Centre for Economic and Managerial Sciences, University of Guadalajara, Núcleo Universitario Los Belenes CUCEA, Zapopan, Jalisco, México*

#### **1. Introduction**

318 Theoretical and Methodological Approaches to Social Sciences and Knowledge Management

[24] Worley, J.M. and T.L. Doolen, 2006. "The role of communication and management

228-245.943

support in a lean manufacturing implementation", Management Decision, 44 (2):

The new conditions of globalization underlie life conditions and the importance of a generational future as a component of competitiveness. What constitutes globalization is the interaction that changes the scenarios for the individuals, organizations and society, who are constantly hounded by contradictory forces and uncertainties. The appropriate use of natural resources can meet present and future interests, having a change in current practices. In comparison to the economic rationality´s logic that drives the functioning of organizations and has as a lead obtaining maximum present return, before that if natural resources yield greater benefit under their exploitation than taking care of them, they are sacrificed. Thus, the immediate economic profit is the current enemy of the environment. The ecological proposal in organizations, widen its model of interactions which can integrate the environmental paradigm to the organizational system. An approaching to sustainability of organizations is affected by the combination of ambiguous environmental economic policies, the abrupt adoption of production technologies and market practices. Sustainability in business organizations as an implementation strategy of process reengineering and the adoption of production technologies are oriented toward avoiding waste materials, recycling trash and eliminating toxics.

Lacking acceptance of the role that business organizations play in sustainability, it influences the global debate questioning real causes of pollution which poses safeguards to organizations and justify poverty as the main cause generating environmental degradation. It also suggests as a consequence of deterioration the inadequate economic policies that allow for business actions less friendly with the environment. This paper sets as aims, firstly to determine the level of organizational sustainability for the environmental and economic development of cutting treatment and exploitation activities of the grass called *tule thypa spp* from Zapotlán Lake. Similarly, the paper pretends to analyze potentialities and economic benefits derived from a marketing orientation of international business in the making of art craft out of *tule* and *palmilla* (a kind of palm) that growth spontaneously in Zapotlán Lake. To achieve these objectives, it is drawn a conceptual, theoretical, methodological and

Organizational Sustainability:

converter of the community efforts.

**3.1 Background of the problem**

Sebastián del Sur (Southern San Sebastián)

institutional change.

actually found

The Case of Handcrafts Micro-Business in Southern San Sebastian, Jalisco, México 321

and the ones that follow strategies of niches occupy different environmental resources to produce innovative responses that form inter-dependent connections with other specialized organizations in other industries such as structures of community support. Processes of economic structural change in a local economy require profound changes in trust levels and inter-relationships of cooperation fomented by arrangements of institutions and organizations. Thus, local government must define action lines which function as a catalytic

Finally, population ecologists suggest that the environment selects the organizations which structural features provide the highest values for adjustment, emphasizing the competitive process as a driver of institutional change. Besides, population ecology suggests that organizations founded in a specific organizational form, combined with differences on the surviving rates between organizations with different organizational forms, produce

Similarly to the great majority of aquatic bodies localized in closed basins of Mexican national territory, Zapotlán Lake is the natural receptacle, dump and outlet where converge the sewage, trash and black waters from the human settlements of Cd. Guzmán and san

The presence of these natural elements form a nutrients blend that facilitates the growth and development of an abundant aquatic mix which has covered almost the totality of the mirror's surface of the lake and it extends further beyond the shores while penetrating humidity. The transformations of the environment´s lake of Zapotlán have a strong impact on the population's socio-economic issues, mainly in San Sebastián del Sur in the municipality of Gomez Farías, and to a lesser extent to the settlers of Cd. Guzmán in the municipality of Zapotlán el Grande, despite the higher levels of pollution in which in is

Deterioration of this lake-body has achieved alarming levels as a consequence of the increasing population and its corresponding enlarging urbanization processes, industrial, farming and agricultural activities. Specifically, one of the natural resources offered by the lake of Zapotlán, the aquatic *tule typha spp* has been benefiting the settlers and inhabitants of San Sebastián del Sur mainly for its exploitation through the crafting of several products and handicrafts. Thus, the exploitation of *tule* and the elaboration of handicrafts create direct employments and constitute the income base for around 300 families and their members, a roughly estimation of one thousand and five hundred individuals making a living out of these activities in the municipality of Gomez Farías. However, more are the benefits obtained from *tule* chubby and plump those other kinds, followed by the one known as *palmilla* (palm). In its natural habitat, the *palmilla tule* harms *tule* chubby´s growing and development. This problem, among others, added to the problems derived from environmental degradation which transforms nature of Zapotlán's lake, limit the economic activities derived from the extraction of *tule,* whose tendency, if it is going to continue in the

**3. The case of micro and small business enterprises involved in the**

**exploitation of** *Tule Typha* **spp***.* **from the lake Zapotlán**

contextual reference framework, out of which departs to analyze the case of art craft micro enterprises processing *tule* in the locality of Southern San Sebastian following the design of a traditional research beginning with the hypothesis formulation. Finally, the results are analyzed and recommendations are formulated.

#### **2. Organizational sustainability and organizational social capital**

A sustainable organization integrates the ecological vision and the institutional theories in organizational systemic values. The acquisition of a common sense in the production of goods and services is utilized as a stronghold to promote the eco-efficiency as a friendly culture of organizations with their environments to achieve emission reductions and rational exploitation of natural resources. The environmental variable in organizational culture is inserted as a rational interpretation of the functioning for the environmental protection, reducing insecurity and context's social pressure. Environmental protection is a technical variable composed by other environmental values such as the promotion of environmental caring, environmental risk control, adequate relationship between organizations, and integration of working groups, orientation and permanent staffing on sustainability. In addition, economic instruments tie sustainable development to micro and small business enterprises. Instruments such as governmental policies, low market tariffs to diminish costs, promotion and incentive of employment opportunities, detection of opportunity areas, etc. are required. Also, it is convenient to have the diagnostic of adaptable enterprises to sustainability because not all of the micro and small business enterprises are capable to form an environmental internal culture. From the point of view of general theory of organizations, according to studies on social capital by Baker (2000) and Burt (1997) (cited by Portes, 1999:247) it is necessary to gain a greater insight, comprehension and understanding of market competitiveness mechanisms. Similarly, Joyce (1998) focuses his analysis of social capital in the leadership phenomena. Either the organization or each one of its members can be incorporated as public and private issues to social capital. Thus, from social capital emerge two patterns, the emphasis on public goods and the emphasis on private goods.

Leana y Van Buren III (1999) define organizational social capital as a resource which reflects the character of social relations within the organization, achieved through the levels of members' orientation by collective objectives and shared trust. Social capital is a collective attribute more than aggregation of individual social connections. It is a byproduct of other organizational activities and thus, it constitutes and indispensable component for collective action. Social organizational capital is an asset whose joint possession between members and the organization benefits both. A new organization has the advantage to create its own organizational social capital in such a way that can maintain optimum equilibrium between stakeholders, individual and other organizational interests in spite of their contingent nature. This is to say, different situations and persons in their relation to organizational performance. A community accounts on social organizational capital when their organizations are characterized by relationships of trust that develop and make predictable their behavior. The capacity of a community is reflected in its level of endogenous development.

The organizations are concrete reality with resources' rules and ordinances for the pursuit of objectives. Members of an organization have as expectations to solve problems of collective action to get supply of some goods and services. Organizations that follow general strategies and the ones that follow strategies of niches occupy different environmental resources to produce innovative responses that form inter-dependent connections with other specialized organizations in other industries such as structures of community support. Processes of economic structural change in a local economy require profound changes in trust levels and inter-relationships of cooperation fomented by arrangements of institutions and organizations. Thus, local government must define action lines which function as a catalytic converter of the community efforts.

Finally, population ecologists suggest that the environment selects the organizations which structural features provide the highest values for adjustment, emphasizing the competitive process as a driver of institutional change. Besides, population ecology suggests that organizations founded in a specific organizational form, combined with differences on the surviving rates between organizations with different organizational forms, produce institutional change.

#### **3. The case of micro and small business enterprises involved in the exploitation of** *Tule Typha* **spp***.* **from the lake Zapotlán**

#### **3.1 Background of the problem**

320 Theoretical and Methodological Approaches to Social Sciences and Knowledge Management

contextual reference framework, out of which departs to analyze the case of art craft micro enterprises processing *tule* in the locality of Southern San Sebastian following the design of a traditional research beginning with the hypothesis formulation. Finally, the results are

A sustainable organization integrates the ecological vision and the institutional theories in organizational systemic values. The acquisition of a common sense in the production of goods and services is utilized as a stronghold to promote the eco-efficiency as a friendly culture of organizations with their environments to achieve emission reductions and rational exploitation of natural resources. The environmental variable in organizational culture is inserted as a rational interpretation of the functioning for the environmental protection, reducing insecurity and context's social pressure. Environmental protection is a technical variable composed by other environmental values such as the promotion of environmental caring, environmental risk control, adequate relationship between organizations, and integration of working groups, orientation and permanent staffing on sustainability. In addition, economic instruments tie sustainable development to micro and small business enterprises. Instruments such as governmental policies, low market tariffs to diminish costs, promotion and incentive of employment opportunities, detection of opportunity areas, etc. are required. Also, it is convenient to have the diagnostic of adaptable enterprises to sustainability because not all of the micro and small business enterprises are capable to form an environmental internal culture. From the point of view of general theory of organizations, according to studies on social capital by Baker (2000) and Burt (1997) (cited by Portes, 1999:247) it is necessary to gain a greater insight, comprehension and understanding of market competitiveness mechanisms. Similarly, Joyce (1998) focuses his analysis of social capital in the leadership phenomena. Either the organization or each one of its members can be incorporated as public and private issues to social capital. Thus, from social capital emerge two patterns, the emphasis on public goods

Leana y Van Buren III (1999) define organizational social capital as a resource which reflects the character of social relations within the organization, achieved through the levels of members' orientation by collective objectives and shared trust. Social capital is a collective attribute more than aggregation of individual social connections. It is a byproduct of other organizational activities and thus, it constitutes and indispensable component for collective action. Social organizational capital is an asset whose joint possession between members and the organization benefits both. A new organization has the advantage to create its own organizational social capital in such a way that can maintain optimum equilibrium between stakeholders, individual and other organizational interests in spite of their contingent nature. This is to say, different situations and persons in their relation to organizational performance. A community accounts on social organizational capital when their organizations are characterized by relationships of trust that develop and make predictable their behavior.

The capacity of a community is reflected in its level of endogenous development.

The organizations are concrete reality with resources' rules and ordinances for the pursuit of objectives. Members of an organization have as expectations to solve problems of collective action to get supply of some goods and services. Organizations that follow general strategies

**2. Organizational sustainability and organizational social capital**

analyzed and recommendations are formulated.

and the emphasis on private goods.

Similarly to the great majority of aquatic bodies localized in closed basins of Mexican national territory, Zapotlán Lake is the natural receptacle, dump and outlet where converge the sewage, trash and black waters from the human settlements of Cd. Guzmán and san Sebastián del Sur (Southern San Sebastián)

The presence of these natural elements form a nutrients blend that facilitates the growth and development of an abundant aquatic mix which has covered almost the totality of the mirror's surface of the lake and it extends further beyond the shores while penetrating humidity. The transformations of the environment´s lake of Zapotlán have a strong impact on the population's socio-economic issues, mainly in San Sebastián del Sur in the municipality of Gomez Farías, and to a lesser extent to the settlers of Cd. Guzmán in the municipality of Zapotlán el Grande, despite the higher levels of pollution in which in is actually found

Deterioration of this lake-body has achieved alarming levels as a consequence of the increasing population and its corresponding enlarging urbanization processes, industrial, farming and agricultural activities. Specifically, one of the natural resources offered by the lake of Zapotlán, the aquatic *tule typha spp* has been benefiting the settlers and inhabitants of San Sebastián del Sur mainly for its exploitation through the crafting of several products and handicrafts. Thus, the exploitation of *tule* and the elaboration of handicrafts create direct employments and constitute the income base for around 300 families and their members, a roughly estimation of one thousand and five hundred individuals making a living out of these activities in the municipality of Gomez Farías. However, more are the benefits obtained from *tule* chubby and plump those other kinds, followed by the one known as *palmilla* (palm). In its natural habitat, the *palmilla tule* harms *tule* chubby´s growing and development. This problem, among others, added to the problems derived from environmental degradation which transforms nature of Zapotlán's lake, limit the economic activities derived from the extraction of *tule,* whose tendency, if it is going to continue in the

Organizational Sustainability:

**3.2 Delimitation of the problem**

 Increments in the cost of raw materials (Wood and tule) Considerable increasing of craftsmen in the region

Low and slow commercialization of handcrafted products

the economic benefits of workers and the employment creation

Bad reduction of handcrafted products

activities at Zapotlan´s Lake.

**3.5 Handcrafts in San Sebastian Del Sur**

from Zapotlán´s Lake.

**3.3 Objectives**

**3.4 Hypothesis**

Little support for the promotion of their goods.

The Case of Handcrafts Micro-Business in Southern San Sebastian, Jalisco, México 323

Zapotlán´s Lake has been consciously subjugated to environmental degradation by the inhabitants of the municipalities of Zapotlán el Grande y Gómez Farías. This situation together with the over exploitation of tule are the two are the two main factors contributing to limit sustainability of the economic activity and derived benefits of cultivation, treatment and elaboration of tule handcrafts. There are other factors that limit the sustainable development. Thus, employment creation and increasing the income of around three hundred families highly depending of the economic activity are found seriously threatened given the current conditions of development. In the last few years, the selling of tule crafted goods has been favored. However, the industry still faces certain problems, among which we can mention:

This paper is the result of a research that initiated with the following questions: What is the sustainability of the economic efficiency and environmental development of the activities and expected benefits of *tule*´s cultivation and exploitation in Zapotlán's Lake for almost three hundred families, whose income is depending on these activities, given the dysfunctional environmental conditions in which they are actually found? What are the potentials and economic benefits derived from introducing in the international markets the handcrafted products made based on *tule* from Zapotlán's Lake as the main raw material?

 To determine the level of organizational sustainability taking into account the economic and environmental development out of *tule*´s cutting, treatment and exploitation

 To analyze potentialities and economic benefits derived from a marketing orientation of international business in the making of handcrafted products made of *tule* and *palmilla*

One orientation of organizational sustainability in the craft making of handcraft goods made of tule from Zapotlan´s Lake as the main raw material contribute to increase family income,

In the last decades, at San Sebastian del Sur located in the municipality of Gómez Farías, the main sources of income have been agriculture, livestock, fishery and handcrafts production. The handcrafts are made from different materials that are taken from natural resources abundant in the region Southern Jalisco. Inhabitants from San Sebastian del Sur take advantage of the benefits provided by what it is known as Zapotlán's Lake that offers means of sustenance from several economic activities that are done there. Among these economic

future, and threatens the disappearance of an important employment´s source for living sustainability of the inhabitants in San Sebastian del Sur. To aggravate this problem, The Pan-American Olympic Games has chosen Zapotlán's Lake as the location where the aquatic games will take place the year 2011. For that reason, the lake is having a profound transformation which implies the clearance and cleaning of the lake´s mirror from any type of grass and bush, including the cutting off and taking out of *tule*. Other factors contributing to limit the environmental and economic sustainability of development and the scope of benefits from economic activities and exploitation of *tule* are the following:

Until now, handcrafted products derived from *tule* as the main raw material, are elaborated with a strong artistic content to attend local, regional, national and international markets, which traditionally consume because there is a strong historic presence in Mexican culture since pre-colonial times. In order to be organized to attend the regional market, a group of 42 craftsmen acting as partners integrating the Association of Craftsmen (Asociación de Artesanos) initiated the construction of the "House of Craftsmen" in the early nineties to operate as an outlet for selling their products. This business still operates until now having only six partners, although it can be inferred from simple observation that the partners are undergoing heavy conflicts, dividing the building and infrastructure in small areas to operate their own personal business.

Most of the craftsmen deliver their production to middlemen who always perform as hoarders, being a link in the distribution channel and contributing to the commercialization of the handcrafted products in the local, regional and national markets and incipiently in the international markets. These middlemen are the ones who hold the greater percentage of profits. Similarly, by the same token, production is oriented to meet the fundamental needs and wishes of our own local, regional and national markets. Because it is a captive and non competitive market, craftsmen do not perform product design and product development activities. The crafted products implicitly have a higher craftsmanship content in order to meet a more sophisticated demand of international markets which value and appreciate the artistic sensibility and good taste of skillful craftsmen. These craftsmen work tule as a raw material for the creation of handcrafts. The exploitation of *tule* from Zapotlán's lake has followed irrational patterns which affect not only the environmental sustainability and equilibrium, but also generate problems of low family income and in the running time lesser employment for manpower. The rehabilitation of the Lake requires a more rational exploitation of *tule*, in such a way that does not affect the environmental sustainability and the economic activity derived and the treatment of *tule*, while on the other hand, also it is required to improve the family income who work *tule* and inclusive to generate new employments.

#### **3.2 Delimitation of the problem**

322 Theoretical and Methodological Approaches to Social Sciences and Knowledge Management

future, and threatens the disappearance of an important employment´s source for living sustainability of the inhabitants in San Sebastian del Sur. To aggravate this problem, The Pan-American Olympic Games has chosen Zapotlán's Lake as the location where the aquatic games will take place the year 2011. For that reason, the lake is having a profound transformation which implies the clearance and cleaning of the lake´s mirror from any type of grass and bush, including the cutting off and taking out of *tule*. Other factors contributing to limit the environmental and economic sustainability of development and the scope of

benefits from economic activities and exploitation of *tule* are the following:

b. Lack of organization between the cutters of *tule* and the handcrafters'

activities, such as credits, training and technical assistance.

and distribution of elaborated products.

markets where more acceptances have.

operate their own personal business.

employments.

a. Null orientation toward a sustainable exploitation of *tule* as a natural resource.

c. Weak infrastructure for the development of a more advanced handcrafted production. d. Excessive interest of hoarders and middlemen in the processes of commercialization

e. Lack of mechanisms of governmental institutions to foster and develop economic

f. Null knowledge of techniques and systems to export their products to the international

Until now, handcrafted products derived from *tule* as the main raw material, are elaborated with a strong artistic content to attend local, regional, national and international markets, which traditionally consume because there is a strong historic presence in Mexican culture since pre-colonial times. In order to be organized to attend the regional market, a group of 42 craftsmen acting as partners integrating the Association of Craftsmen (Asociación de Artesanos) initiated the construction of the "House of Craftsmen" in the early nineties to operate as an outlet for selling their products. This business still operates until now having only six partners, although it can be inferred from simple observation that the partners are undergoing heavy conflicts, dividing the building and infrastructure in small areas to

Most of the craftsmen deliver their production to middlemen who always perform as hoarders, being a link in the distribution channel and contributing to the commercialization of the handcrafted products in the local, regional and national markets and incipiently in the international markets. These middlemen are the ones who hold the greater percentage of profits. Similarly, by the same token, production is oriented to meet the fundamental needs and wishes of our own local, regional and national markets. Because it is a captive and non competitive market, craftsmen do not perform product design and product development activities. The crafted products implicitly have a higher craftsmanship content in order to meet a more sophisticated demand of international markets which value and appreciate the artistic sensibility and good taste of skillful craftsmen. These craftsmen work tule as a raw material for the creation of handcrafts. The exploitation of *tule* from Zapotlán's lake has followed irrational patterns which affect not only the environmental sustainability and equilibrium, but also generate problems of low family income and in the running time lesser employment for manpower. The rehabilitation of the Lake requires a more rational exploitation of *tule*, in such a way that does not affect the environmental sustainability and the economic activity derived and the treatment of *tule*, while on the other hand, also it is required to improve the family income who work *tule* and inclusive to generate new Zapotlán´s Lake has been consciously subjugated to environmental degradation by the inhabitants of the municipalities of Zapotlán el Grande y Gómez Farías. This situation together with the over exploitation of tule are the two are the two main factors contributing to limit sustainability of the economic activity and derived benefits of cultivation, treatment and elaboration of tule handcrafts. There are other factors that limit the sustainable development. Thus, employment creation and increasing the income of around three hundred families highly depending of the economic activity are found seriously threatened given the current conditions of development. In the last few years, the selling of tule crafted goods has been favored. However, the industry still faces certain problems, among which we can mention:

This paper is the result of a research that initiated with the following questions: What is the sustainability of the economic efficiency and environmental development of the activities and expected benefits of *tule*´s cultivation and exploitation in Zapotlán's Lake for almost three hundred families, whose income is depending on these activities, given the dysfunctional environmental conditions in which they are actually found? What are the potentials and economic benefits derived from introducing in the international markets the handcrafted products made based on *tule* from Zapotlán's Lake as the main raw material?

#### **3.3 Objectives**

#### **3.4 Hypothesis**

One orientation of organizational sustainability in the craft making of handcraft goods made of tule from Zapotlan´s Lake as the main raw material contribute to increase family income, the economic benefits of workers and the employment creation

#### **3.5 Handcrafts in San Sebastian Del Sur**

In the last decades, at San Sebastian del Sur located in the municipality of Gómez Farías, the main sources of income have been agriculture, livestock, fishery and handcrafts production. The handcrafts are made from different materials that are taken from natural resources abundant in the region Southern Jalisco. Inhabitants from San Sebastian del Sur take advantage of the benefits provided by what it is known as Zapotlán's Lake that offers means of sustenance from several economic activities that are done there. Among these economic

Organizational Sustainability:

Fig. 2. Weekly average salary per worker.

in Fig. 2:

The Case of Handcrafts Micro-Business in Southern San Sebastian, Jalisco, México 325

At the location of San Sebastián it was estimated the weekly average salary per worker in the different activities related to the processing of tule. This data was obtained according to the survey conducted by the craftsmen in the field, leading to the following results showed

According to the conducted study in the locality of San Sebastian, the percentage of

craftsmen affiliated to associations and organizations was the following:

Fig. 3. Percentage of craftsmen affiliated to any organization or association

Fig. 4. Persons´ opinion that have been benefited or affected the market for their products

activities, stand out commercial fishery and *tule* extraction. From this last economic activity, it is generated a large quantity of handcrafts that for several years, families and inhabitants of San Sebastian del Sur have as their main source of income.

#### **3.6 Main goods and handcrafts made out of tule**

Among the handcrafts and goods handcrafted and made out of *tule* in the locality of San Sebastian del Sur, can be mentioned chairs, curtains, armchairs, easy chairs, different types of containers for different purposes, such as the tortillas' containers, tables, blowers, bedrolls and matting (petates), baskets, etc. *Tule* as a raw material is extracted from Zapotlán's Lake where it growths spontaneously and wildly. This natural resource is recollected by the inhabitants of the municipality of Gómez Farías, who do not depend or are required to hold a permission granted by municipal authorities to cut *tule*, to dry it and to sell it.

#### **4. Research methods**

A study was conducted to analyze the economic and social development of handcrafters who carry on productive activities using tule as a raw material in the making of handcrafts at the locality of San Sebastian del Sur, in the municipality of Gomez Farías, Jalisco. Data was obtained by means of a random survey based on the roster of handcrafters, which is a list of registered ones. This was done with the purpose of getting to know the different economic and social aspects of producers. The following data was obtained: Number of surveyed: 33; number of workshops visited: 33. Trades of handcrafters and producers were classified in 4 groups, out of which it was found that the 33 persons surveyed were dedicated to the following activities: Manufacturing of rustic furniture: 9. Hand-woven of furniture and handcrafts: 7. Manufacturing of matting and bedrolls: 15. Cutters of *tule*: 2.

#### **5. Analysis of results**

The percentages of families who are dependent of related activities with tule according to the survey results in the locality of San Sebastián del Sur, showed in Fig. 1 are the following:

Fig. 1. Percentage of families depending of related activities with tule

At the location of San Sebastián it was estimated the weekly average salary per worker in the different activities related to the processing of tule. This data was obtained according to the survey conducted by the craftsmen in the field, leading to the following results showed in Fig. 2:

Fig. 2. Weekly average salary per worker.

324 Theoretical and Methodological Approaches to Social Sciences and Knowledge Management

activities, stand out commercial fishery and *tule* extraction. From this last economic activity, it is generated a large quantity of handcrafts that for several years, families and inhabitants

Among the handcrafts and goods handcrafted and made out of *tule* in the locality of San Sebastian del Sur, can be mentioned chairs, curtains, armchairs, easy chairs, different types of containers for different purposes, such as the tortillas' containers, tables, blowers, bedrolls and matting (petates), baskets, etc. *Tule* as a raw material is extracted from Zapotlán's Lake where it growths spontaneously and wildly. This natural resource is recollected by the inhabitants of the municipality of Gómez Farías, who do not depend or are required to hold

A study was conducted to analyze the economic and social development of handcrafters who carry on productive activities using tule as a raw material in the making of handcrafts at the locality of San Sebastian del Sur, in the municipality of Gomez Farías, Jalisco. Data was obtained by means of a random survey based on the roster of handcrafters, which is a list of registered ones. This was done with the purpose of getting to know the different economic and social aspects of producers. The following data was obtained: Number of surveyed: 33; number of workshops visited: 33. Trades of handcrafters and producers were classified in 4 groups, out of which it was found that the 33 persons surveyed were dedicated to the following activities: Manufacturing of rustic furniture: 9. Hand-woven of furniture and handcrafts: 7. Manufacturing of matting and bedrolls: 15. Cutters of *tule*: 2.

The percentages of families who are dependent of related activities with tule according to the survey results in the locality of San Sebastián del Sur, showed in Fig. 1 are the following:

Fig. 1. Percentage of families depending of related activities with tule

a permission granted by municipal authorities to cut *tule*, to dry it and to sell it.

of San Sebastian del Sur have as their main source of income.

**3.6 Main goods and handcrafts made out of tule**

**4. Research methods**

**5. Analysis of results**

According to the conducted study in the locality of San Sebastian, the percentage of craftsmen affiliated to associations and organizations was the following:

Fig. 3. Percentage of craftsmen affiliated to any organization or association

Fig. 4. Persons´ opinion that have been benefited or affected the market for their products

Organizational Sustainability:

handcrafters of matting and bedrolls (petateros).

and middlemen at a price of 70 pesos as an average.

matting and bedrolls (petates).

environment.

The Case of Handcrafts Micro-Business in Southern San Sebastian, Jalisco, México 327

yards) adjacent to Zapotlan's Lake. Similarly, there is lack of support to facilitate the drying of the cut tule. This situation always represents problems when tule is green. When tule is spread out and laid out in a country yard or patio for the processing of drying, it last from 3 to 4 days. There are some spells, mainly during the period of ebb tide in which tule is dried without being cuted, stating a little bit green. However, ecologically and environmentally these processes have some serious consequences which affect the local economics and

Cultivation and exploitation of *tule* constitutes an important economic activity, mainly for the community of San Sebastian del Sur because it provides economic support to around three hundred families. About 80 families are economically benefited with the income received from the cutting, drying and transport of *tule*. Around 140 families are benefited from the handcrafted production of goods made of both varieties of *tule,* the *palmilla tule* and the chubby *tule* as the main raw material. Out of these 140 families, 120 are self-considered

Around half of the 55 handcrafters registered in the Trade and Commercial Association have their own workshops, while the other half only work in assembling plant because they do not count on the instruments of a workshop properly equipped. Around 70 families receive income from intermediation, hoarding, stockpiling and commercialization activities of products derived from *tule*. The cutters of tule dry their raw material and make even up to two bunches per one day. The two bunches are sold at an average price of 75-80 pesos each one, making 150-160 pesos per day. Regularly, this sale represents the daily family income of around 13 USA Dollars. *Tule palmilla* used for the manufacturing of chairs is sold to intermediaries; most of them are owners of small stores who stockpile it. *Tule* chubby is sold to the craftsmen at a price a little bit less expensive to be used in the manufacturing of

Most part of manpower employed in the cutting of *tule* is permanent and their trade was inherited from antecedent generations. According to the conducted field research, and due to the ongoing changes taking place in Zapotlán's Lake, every year there are less cutters, thus, in the years before, the cutting of *tule* was an activity which generated more employment than nowadays. In the years before, the cutters formed a group and became a formal association of tule's cutters. Some of the actual cutters are temporarily workers in this activity, more specifically when they do not find a better remunerated employment.

The craftsmen produce different goods using as the main raw material *tule*, such as matting, bedrolls, hats, chiquihuites (containers in form of wide baskets), shadows, traditional chairs, high chairs, seamstresses, etc. From a roll to a bunch or bundle of *tule* handcraft up to seven matting which the craftsmen sell to a price of 30 pesos each one, an equivalent of two USA dollars and 40 cents, obtaining up to 210 pesos (almost 17 USA dollars) with an original investment averaging 80 pesos, the cost of one bunch of *tule.* A bunch of *tule* is formed with 5 or 6 big hands (manotadas) of *tule*. The cost of one big hand is approximately 20 pesos and it is the base to manufacture one chair which is sold at a price of 50 pesos to the intermediary o middleman. The cost of materials of one chair also includes besides the big hand, a wood branch of pine whose costs is up to 15 pesos, a cost that has been increasing when used to be 1.50 pesos several years ago. In one workshop where regularly work five craftsmen achieve to produce up to 70 chairs per week which are sold to the intermediaries

The majority of craftsmen (94%) in the location of San Sebastian do not receive any type of support from any institution or dependence, while a small number of workers sustained not receiving economic support and promotion for their products and goods mainly from state and municipal institutions. 81% of the surveyed persons have the opinion that the market has been benefited in the last years due to there are more demand of their products and goods. Only 19 % perceived that has been affected selling their products.

45% of persons are sure that exists more pollution, 42% say to be in equal conditions tan before and only 13% perceives less pollution in Zapotlan´s Lake.

Fig. 5. Perceptions of surveyed persons on pollution at zapotlan's lake

#### **6. Discussion and comments on organizational sustainability based on the research results**

The presence of bundles of *tule* covering around one third of surface at Zapotlán's Lake (Universidad de Guadalajara, 1995), it is important for the nesting, refuge and protection of several species of fishes, tilapia, and carps and also for several species of birds. *Tule*´s plant serves as the food for some species beginning from the organic material which becomes detached from the roots, regulates water's temperature thus the environmental temperature. In the following months after November, the plant is affected by groups of birds know as zanates who build their nest to sleep and to protect against the bundles of *tule* that the same birds break down. The biggest problem faced is that the proper bundles of *tule palmilla* (tule palm) used to weave chairs are flouting and invading the chubby *tule* used to manufacture matting and bedrolls and impede its normal growth and development. Thus, the bundles of *tule* need cleaning, or the *tule palmilla* damages the chubby *tule*. This problem has a solution. If there are extracted the bundles of *tule palmilla* that walk soils when the level of water goes up and cover the chubby *tule*.

The cutters claim that, among other problems, they do not count on the support and back up of any governmental dependence or institution through the granting of permissions to cut and exploit the *tule*. Also, the cutters claim that they do not receive any financial support in credits for the creation of facilities and infrastructure to carry on their activities and increase their productivity. One good example is the lacking acquisition of tools, cutters or motorboats to facilitate cutting of *tule* or conditioning of plots of land (patios or country

The majority of craftsmen (94%) in the location of San Sebastian do not receive any type of support from any institution or dependence, while a small number of workers sustained not receiving economic support and promotion for their products and goods mainly from state and municipal institutions. 81% of the surveyed persons have the opinion that the market has been benefited in the last years due to there are more demand of their products and

45% of persons are sure that exists more pollution, 42% say to be in equal conditions tan

goods. Only 19 % perceived that has been affected selling their products.

before and only 13% perceives less pollution in Zapotlan´s Lake.

Fig. 5. Perceptions of surveyed persons on pollution at zapotlan's lake

**research results**

up and cover the chubby *tule*.

**6. Discussion and comments on organizational sustainability based on the**

The presence of bundles of *tule* covering around one third of surface at Zapotlán's Lake (Universidad de Guadalajara, 1995), it is important for the nesting, refuge and protection of several species of fishes, tilapia, and carps and also for several species of birds. *Tule*´s plant serves as the food for some species beginning from the organic material which becomes detached from the roots, regulates water's temperature thus the environmental temperature. In the following months after November, the plant is affected by groups of birds know as zanates who build their nest to sleep and to protect against the bundles of *tule* that the same birds break down. The biggest problem faced is that the proper bundles of *tule palmilla* (tule palm) used to weave chairs are flouting and invading the chubby *tule* used to manufacture matting and bedrolls and impede its normal growth and development. Thus, the bundles of *tule* need cleaning, or the *tule palmilla* damages the chubby *tule*. This problem has a solution. If there are extracted the bundles of *tule palmilla* that walk soils when the level of water goes

The cutters claim that, among other problems, they do not count on the support and back up of any governmental dependence or institution through the granting of permissions to cut and exploit the *tule*. Also, the cutters claim that they do not receive any financial support in credits for the creation of facilities and infrastructure to carry on their activities and increase their productivity. One good example is the lacking acquisition of tools, cutters or motorboats to facilitate cutting of *tule* or conditioning of plots of land (patios or country yards) adjacent to Zapotlan's Lake. Similarly, there is lack of support to facilitate the drying of the cut tule. This situation always represents problems when tule is green. When tule is spread out and laid out in a country yard or patio for the processing of drying, it last from 3 to 4 days. There are some spells, mainly during the period of ebb tide in which tule is dried without being cuted, stating a little bit green. However, ecologically and environmentally these processes have some serious consequences which affect the local economics and environment.

Cultivation and exploitation of *tule* constitutes an important economic activity, mainly for the community of San Sebastian del Sur because it provides economic support to around three hundred families. About 80 families are economically benefited with the income received from the cutting, drying and transport of *tule*. Around 140 families are benefited from the handcrafted production of goods made of both varieties of *tule,* the *palmilla tule* and the chubby *tule* as the main raw material. Out of these 140 families, 120 are self-considered handcrafters of matting and bedrolls (petateros).

Around half of the 55 handcrafters registered in the Trade and Commercial Association have their own workshops, while the other half only work in assembling plant because they do not count on the instruments of a workshop properly equipped. Around 70 families receive income from intermediation, hoarding, stockpiling and commercialization activities of products derived from *tule*. The cutters of tule dry their raw material and make even up to two bunches per one day. The two bunches are sold at an average price of 75-80 pesos each one, making 150-160 pesos per day. Regularly, this sale represents the daily family income of around 13 USA Dollars. *Tule palmilla* used for the manufacturing of chairs is sold to intermediaries; most of them are owners of small stores who stockpile it. *Tule* chubby is sold to the craftsmen at a price a little bit less expensive to be used in the manufacturing of matting and bedrolls (petates).

Most part of manpower employed in the cutting of *tule* is permanent and their trade was inherited from antecedent generations. According to the conducted field research, and due to the ongoing changes taking place in Zapotlán's Lake, every year there are less cutters, thus, in the years before, the cutting of *tule* was an activity which generated more employment than nowadays. In the years before, the cutters formed a group and became a formal association of tule's cutters. Some of the actual cutters are temporarily workers in this activity, more specifically when they do not find a better remunerated employment.

The craftsmen produce different goods using as the main raw material *tule*, such as matting, bedrolls, hats, chiquihuites (containers in form of wide baskets), shadows, traditional chairs, high chairs, seamstresses, etc. From a roll to a bunch or bundle of *tule* handcraft up to seven matting which the craftsmen sell to a price of 30 pesos each one, an equivalent of two USA dollars and 40 cents, obtaining up to 210 pesos (almost 17 USA dollars) with an original investment averaging 80 pesos, the cost of one bunch of *tule.* A bunch of *tule* is formed with 5 or 6 big hands (manotadas) of *tule*. The cost of one big hand is approximately 20 pesos and it is the base to manufacture one chair which is sold at a price of 50 pesos to the intermediary o middleman. The cost of materials of one chair also includes besides the big hand, a wood branch of pine whose costs is up to 15 pesos, a cost that has been increasing when used to be 1.50 pesos several years ago. In one workshop where regularly work five craftsmen achieve to produce up to 70 chairs per week which are sold to the intermediaries and middlemen at a price of 70 pesos as an average.

Organizational Sustainability:

**7. Conclusions**

distribution channels.

**8. Recommendations**

environmental sustainability.

capital.

The Case of Handcrafts Micro-Business in Southern San Sebastian, Jalisco, México 329

The exploitation of tule represents an economic activity that provides income to approximately three hundred families living at the settlement of San Sebastian del Sur. Nevertheless, in the last few years the income has been decreasing due to the environmental changes and to the rehabilitation of Zapotlan's Lake to host the Pan-American Games in 2011. Both, the environmental changes and rehabilitation of the lake represent a serious threat to the economic efficiency and environmental sustainability. To achieve equilibrium between environmental sustainability and economic sustainability must be one of the main goals of the rehabilitation programs. Thus, the best indicators are required under a systematic study to determine the most adequate levels of environmental sustainability and economic efficiency. The limited social organizational capital and the lack of adequate forms of organization for the productivity, contribute to limit the scope and economic benefits that must provide an adequate exploitation of *tule* from Zapotlan's Lake. Disorganization of cutters and craftsmen of *tule* is the source of profound and increasing conflicts that not only block and limit the scope of better levels of productivity and family income, but also make difficult the pacific coexistence and living together and spoil the community´s quality of life. Lacking a consultancy program to exports of handcrafted products has an impact on lower income to the families of cutters and craftsmen, because who actually obtain the greater part of profits are the intermediaries who take part on the commercialization processes and

Some characteristics of specificity and appropriateness of social and human capital involve economic, social and political relationships among individuals who are members of organizations, making complex their effects. Market is a social construction that makes operational social relations. Both capitals can be important resources of the competitive advantage, assuming that reside in the members or it is specific to the organizations as integral parts of resources that are unique and that are no observables. Organizations with higher levels of social and human capital generate more competitiveness than those with lower levels. A sustainable economy requires programs aimed to improve social and human

 Design a program to promote handcrafted activities derived from the exploitation of tule that in a parallel form to the rehabilitation program of Zapotlán's Lake, establish the right indicators to achieve equilibrium between economic efficiency and

 To set a program of export consultancy with the support and technical staffing from students of international business at University of Guadalajara that provide the knowledge, skills and contacts in such a way that *tule*´s craftsmen directly commercialize and market their own handcrafted products in the international markets. To propose a program for development of organizational and social capital and new forms of organization aimed to increase productivity and competitiveness of the craftsmen, thus increasing their family income and promoting employment creation and improve the quality of life of the whole community of San Sebastian del Sur.

Some recommendations after this research are formulated below:

This price can improve depending on negotiations and trading with intermediaries and middlemen. Many cutters supply raw material to their own families who are in charge of the crafting of handcrafted products, widening with this situation the economic benefits and adding value. In other cases, there are conducted some practices of half by half ("medieros") between the cutters and the handcrafters. This is to say, after the selling of products; both cutter and handcrafter share the benefits in the same proportion, half and half.

Nowadays, the relationship among handcrafters of tule registered in one association at the location of San Sebastian del Sur is 55. 16 years ago, the association was formed by 42 partners and set as the main aim the founding and building of the craftsman's house (Casa Del Artesano) as the market place in which their handcrafted production can be exhibited and sold. The three levels of government, Federal, State and Municipal contributed with donations of materials for the construction, while the partners made manpower contributions. However, most of the craftsmen members of the Association do not made any contributions of manpower and finally only six partners did it, and who nowadays exhibit and sell their handcrafted products in a separated way at the craftsman's house. This craftsman´s house is located at one side of the Federal Highway Guadalajara- Cd. Guzman, in an adjacent location to the Municipal Cemetery. The person who was at the front and in charge of the Association, he has also the ownership of land and building. Originally the land was signaled by the Municipal Government of Gomez Farías for the construction of the craftsman´s house. However, lately it was found that this land did not have any proprietorship according to the archives of the Public Register of Ownership.

Thus, nowadays, the ownership of the craftsman is the "apple of discord" and the cause of several conflicts due to the other craftsmen wants to participate of the benefits with the support of the municipal government. One of the former municipal officials who tried to benefit a group of craftsmen who do neither exhibit nor sell their products at the craftsman´s house, had sent official letters to the Public Notary requesting a change in ownership regime and claiming that it is municipal's ownership. Despite of this, there is not one organization of craftsmen to whom it may classify among these who count on their own workshops, approximately half of the 55 registered members, and those who sell or "maquila" their own manpower for the former. Thus, those who sell their own manpower, do not have their own equipment, tools and facilities to establish their own workshop.

According to our own research, the interviewed assure that sales are declining. Today, they argue, sell less than 10 years ago. The middlemen and intermediaries are who more profits obtain from the commercialization of the handcrafted products. In order than a handcrafted product reaches the final consumer, it is required at least a three level´s distribution channel, and this is to say that at least there are two intermediaries between producers and consumers. The intermediaries are the ones who attend national markets and to a lesser extent they export the handcrafted products to some parts of United States, Canada, Puerto Rico, England and Japan. The terrorist actions of September 11, 2001 had affected missing some orders of handcrafts. Some of the problems that the craftsmen face are those related to the lack of training programs to develop and preserve handcrafter techniques, financial support, and obtaining credits to extend basic production infrastructure, and of course, staffing and consultancy for direct exports of their products to the international markets. All these actions will benefit the economic income of more than 300 families in San Sebastián del Sur, Jalisco.

#### **7. Conclusions**

328 Theoretical and Methodological Approaches to Social Sciences and Knowledge Management

This price can improve depending on negotiations and trading with intermediaries and middlemen. Many cutters supply raw material to their own families who are in charge of the crafting of handcrafted products, widening with this situation the economic benefits and adding value. In other cases, there are conducted some practices of half by half ("medieros") between the cutters and the handcrafters. This is to say, after the selling of products; both

Nowadays, the relationship among handcrafters of tule registered in one association at the location of San Sebastian del Sur is 55. 16 years ago, the association was formed by 42 partners and set as the main aim the founding and building of the craftsman's house (Casa Del Artesano) as the market place in which their handcrafted production can be exhibited and sold. The three levels of government, Federal, State and Municipal contributed with donations of materials for the construction, while the partners made manpower contributions. However, most of the craftsmen members of the Association do not made any contributions of manpower and finally only six partners did it, and who nowadays exhibit and sell their handcrafted products in a separated way at the craftsman's house. This craftsman´s house is located at one side of the Federal Highway Guadalajara- Cd. Guzman, in an adjacent location to the Municipal Cemetery. The person who was at the front and in charge of the Association, he has also the ownership of land and building. Originally the land was signaled by the Municipal Government of Gomez Farías for the construction of the craftsman´s house. However, lately it was found that this land did not have any

cutter and handcrafter share the benefits in the same proportion, half and half.

proprietorship according to the archives of the Public Register of Ownership.

equipment, tools and facilities to establish their own workshop.

Sur, Jalisco.

Thus, nowadays, the ownership of the craftsman is the "apple of discord" and the cause of several conflicts due to the other craftsmen wants to participate of the benefits with the support of the municipal government. One of the former municipal officials who tried to benefit a group of craftsmen who do neither exhibit nor sell their products at the craftsman´s house, had sent official letters to the Public Notary requesting a change in ownership regime and claiming that it is municipal's ownership. Despite of this, there is not one organization of craftsmen to whom it may classify among these who count on their own workshops, approximately half of the 55 registered members, and those who sell or "maquila" their own manpower for the former. Thus, those who sell their own manpower, do not have their own

According to our own research, the interviewed assure that sales are declining. Today, they argue, sell less than 10 years ago. The middlemen and intermediaries are who more profits obtain from the commercialization of the handcrafted products. In order than a handcrafted product reaches the final consumer, it is required at least a three level´s distribution channel, and this is to say that at least there are two intermediaries between producers and consumers. The intermediaries are the ones who attend national markets and to a lesser extent they export the handcrafted products to some parts of United States, Canada, Puerto Rico, England and Japan. The terrorist actions of September 11, 2001 had affected missing some orders of handcrafts. Some of the problems that the craftsmen face are those related to the lack of training programs to develop and preserve handcrafter techniques, financial support, and obtaining credits to extend basic production infrastructure, and of course, staffing and consultancy for direct exports of their products to the international markets. All these actions will benefit the economic income of more than 300 families in San Sebastián del The exploitation of tule represents an economic activity that provides income to approximately three hundred families living at the settlement of San Sebastian del Sur. Nevertheless, in the last few years the income has been decreasing due to the environmental changes and to the rehabilitation of Zapotlan's Lake to host the Pan-American Games in 2011. Both, the environmental changes and rehabilitation of the lake represent a serious threat to the economic efficiency and environmental sustainability. To achieve equilibrium between environmental sustainability and economic sustainability must be one of the main goals of the rehabilitation programs. Thus, the best indicators are required under a systematic study to determine the most adequate levels of environmental sustainability and economic efficiency. The limited social organizational capital and the lack of adequate forms of organization for the productivity, contribute to limit the scope and economic benefits that must provide an adequate exploitation of *tule* from Zapotlan's Lake. Disorganization of cutters and craftsmen of *tule* is the source of profound and increasing conflicts that not only block and limit the scope of better levels of productivity and family income, but also make difficult the pacific coexistence and living together and spoil the community´s quality of life. Lacking a consultancy program to exports of handcrafted products has an impact on lower income to the families of cutters and craftsmen, because who actually obtain the greater part of profits are the intermediaries who take part on the commercialization processes and distribution channels.

Some characteristics of specificity and appropriateness of social and human capital involve economic, social and political relationships among individuals who are members of organizations, making complex their effects. Market is a social construction that makes operational social relations. Both capitals can be important resources of the competitive advantage, assuming that reside in the members or it is specific to the organizations as integral parts of resources that are unique and that are no observables. Organizations with higher levels of social and human capital generate more competitiveness than those with lower levels. A sustainable economy requires programs aimed to improve social and human capital.

#### **8. Recommendations**

Some recommendations after this research are formulated below:

**17**

*Uganda*

Muriisa R. Kabeba

**Strengthening Institutional Capacity for**

*Senior Lecturer/Dean, Faculty of Development Studies, Mbarara University of Science and Technology (MUST),*

**Science, Technology and Innovation in Uganda<sup>1</sup>**

The contribution of science and technology to development is well observed world over and has been repeatedly emphasised in Uganda as a development priority. This however, may not take place unless institutions that favour technological innovations and investments into science and technology knowledge systems are considered. Investing in science and technology is the global new catchword not only for individual countries but also donors, such as the World Bank. The new focus on science and technology in Uganda calls for right institutions if Uganda is to benefit from investing in S & T. I hypothesise that promotion of science, technology and innovation cannot take place unless right institutions are put in place not only to allow generation of scientific knowledge but also to allow diffusion of this knowledge. This paper is about strengthening institutions for science and technology in Uganda. The paper discusses institutions and the institutional challenges for the promotion of science and technology and proposes the nature of institutions required for S & T to

In the recent years development initiatives have centred on the role of science and technology (S&T) in promoting and sustaining development. The emphasis by Uganda's president on the need for promoting science and technology is a reminder that the world revolves around science and that scientific innovations are the ones making the world revolve. The call for developing and teaching science and technology in schools however should also put into consideration the institutional requirements for the technological development to occur. This paper discusses the different institutions that can positively

The World Summit for Sustainable Development (WSSD) held in Johannesburg - South Africa in 2002 centred on key role of S&T in sustainable development. The United Nations Millennium Project task force on science, technology, and innovation reiterates the need to harness science and technology sustainably to accelerate development. The development distance between different countries is now being attributed to the levels of science and

1 An earlier version of the paper was presented at Pre CHOGM Symposium "Science and technology for social and economic transformation in Uganda" 13 – 15 September 2007, Lake View Hotel, Mbarara

contribute to the development of science and technology in Uganda.

**1. Introduction**

transform society.

technology in these countries. Thus,

#### **9. References**

Baker, W. E. (2000). *Achieving success trough social capital.* San Francisco, CA: Jossey-Bass.

### **Strengthening Institutional Capacity for Science, Technology and Innovation in Uganda<sup>1</sup>**

#### Muriisa R. Kabeba

*Senior Lecturer/Dean, Faculty of Development Studies, Mbarara University of Science and Technology (MUST), Uganda*

#### **1. Introduction**

330 Theoretical and Methodological Approaches to Social Sciences and Knowledge Management

Joyce, Paul (1998). "Management and innovation in the public services". *Strategy Change*, 7.

Leana, R. Carrie; Van Buren III, Harry (1999). "Organizational social capital and employment practices" *Academy of Management Review*, Vol. 24, No. 3. Ohio. Portes, Alejandro (1999). "Capital social: Sus orígenes y aplicaciones en la sociología

Universidad de Guadalajara (1995). *Ordenamiento Ecológico de la Cuenca de la Laguna de Zapotlán el Grande Jalisco*, Gobierno municipal, Cd. Guzmán, Jalisco.

moderna", Carpio, Jorge y Novaconvsky, Irene (comp.), *De igual a igual. El desafío del Estado ante los nuevos problemas sociales*, Fondo de Cultura económica-Siempro-

Baker, W. E. (2000). *Achieving success trough social capital.* San Francisco, CA: Jossey-Bass. Burt, R. S. (1997). "The contingent value of social capital" *Administrative science Quarterly*, 42,

**9. References**

339-365

54-63

Flacso, Ciudad de México.

The contribution of science and technology to development is well observed world over and has been repeatedly emphasised in Uganda as a development priority. This however, may not take place unless institutions that favour technological innovations and investments into science and technology knowledge systems are considered. Investing in science and technology is the global new catchword not only for individual countries but also donors, such as the World Bank. The new focus on science and technology in Uganda calls for right institutions if Uganda is to benefit from investing in S & T. I hypothesise that promotion of science, technology and innovation cannot take place unless right institutions are put in place not only to allow generation of scientific knowledge but also to allow diffusion of this knowledge. This paper is about strengthening institutions for science and technology in Uganda. The paper discusses institutions and the institutional challenges for the promotion of science and technology and proposes the nature of institutions required for S & T to transform society.

In the recent years development initiatives have centred on the role of science and technology (S&T) in promoting and sustaining development. The emphasis by Uganda's president on the need for promoting science and technology is a reminder that the world revolves around science and that scientific innovations are the ones making the world revolve. The call for developing and teaching science and technology in schools however should also put into consideration the institutional requirements for the technological development to occur. This paper discusses the different institutions that can positively contribute to the development of science and technology in Uganda.

The World Summit for Sustainable Development (WSSD) held in Johannesburg - South Africa in 2002 centred on key role of S&T in sustainable development. The United Nations Millennium Project task force on science, technology, and innovation reiterates the need to harness science and technology sustainably to accelerate development. The development distance between different countries is now being attributed to the levels of science and technology in these countries. Thus,

<sup>1</sup> An earlier version of the paper was presented at Pre CHOGM Symposium "Science and technology for social and economic transformation in Uganda" 13 – 15 September 2007, Lake View Hotel, Mbarara

*The lessons of the last two centuries have shown the crucial difference between having and not having the science and technology capability, even for countries with vast natural resources. The difference lies in being able to exploit these resources themselves or be exploited by others. In this new century, the winner will be the one who can, with capability of science and technology and innovation, extract the most value out of them.* www.logelproject.org 15/07/07

Strengthening Institutional Capacity for Science, Technology and Innovation in Uganda 333

innovate and promote benefits of science and technology is often due to failed institutions. This failure is further compounded by the gap between scientific knowledge generation systems and diffusion mechanisms. Scientific knowledge is erroneously seen as that generated in laboratories. Little attention is paid to the modes and mechanisms of diffusion and how this knowledge and skills could fit into existing systems. Thus, Chataway, Smith

*capacity building in science and technology enables innovation that can enable countries meet their development goals and improve people's lives. But innovation is not something that happens in sophisticated research laboratories, it can happen also by developing new and effective*

The process of innovation is not only confined to formal arrangements, it involves significant elements of informal collaboration, learning and exchange of knowledge between individuals, organisations and across disciplines (Joanna Chataway, Smith, & Wield, 2005b). Science and technology should be understood as far from the conventional sense of building stocks of research infrastructure and trained scientists. Science and technology designed to work as selfcontained activities are insulated from the very systems they seek to influence. This gap between science and its market is rooted in old thinking that equates science and technology generation through formal research with innovation. This conventional view promoted the mistaken notion that scientists and technology specialists, through their research organisations, were the innovators and producers of new knowledge. Research and emerging global challenges such as environmental, diseases, climate change and poverty however, show that scientific innovations cannot provide solutions if insulated from other disciplines. Thus, Nightingale and Scott (2007), point out that the justification for public funding of the biological sciences is "… largely at odds with the outcomes because major causes of illness, such as poverty, lack of education, and poor housing and healthcare are social and political issues that are poorly addressed by the current science-intensive research systems". Thus we need to draw on more inter and multidisciplinary research and take into account that science and scientists do not exist and may not work in isolation, they do so within a network of other actors and require a supportive environment. A look at the collaborative and coordinating

institutions becomes crucial for successful science, technology and innovation.

For the promotion of science and technology, we need to create different institutions that facilitate innovation, diffusion of knowledge and change, in addition to formal institutions for science, technology and innovation. Thus we need to create coordination, reward systems, accountability and governance institutions. The discussion that follow, focuses on different institutions necessary for the promotion of science and technology in any given

There is need to build institutions that allow proper exchange of knowledge between different systems and actors. Whereas innovation is crucial for development, it is noted above, that diffusion of knowledge is much more required for sustainable development. There is therefore, a need for the existence of strong institutions to coordinate different actors and to promote proper integration of scientific knowledge into development goals. It is in this light that the Uganda National Council for Science and Technology (UNCST) was established. Thus, one of the objectives of the UNCST is coordination of all scientific and technological activities

and Wield (2005: 3) argues that,

*approaches and institutions.*

country or community.

**2.1 Institutions for coordination**

Apart from the expected or direct benefits for the promotion of science and technology, the new lending "conditionality" for developing countries is the promotion of science and technology or funding geared towards the promotion of science and technology. Therefore, recent funding requirements by donors such as World Bank is that recipient countries can only benefit from donor funds and aid if they put in place "right" institutions to promote science, technology and innovation. This requirement is based on the premise that promotion of science, technology and innovation cannot take place unless right institutions are put in place not only to allow generation of scientific knowledge but also to allow diffusion of this knowledge2. The new focus on science and technology in Uganda calls for right institutions if Uganda is to benefit from investing in S & T. This paper is about strengthening institutions for science and technology in Uganda. The paper discusses institutions and the institutional challenges for the promotion of science and technology in Uganda, and proposes the nature of institutions required for S & T to transform society. The paper is guided by the following questions:

The paper proceeds as follows; section one conceptualises institutions of science and technology. Section two discusses the different institutional requirements for the promotion of science and technology, section three discusses the institutions for science and technology in Uganda. Section four discusses institutional challenges for the promotion of science and technology in Uganda, lastly section five draws conclusions from the discussions.

#### **2. What are institutions?**

Narrowly conceived institutions refer to structures such as research and technology institutes, universities and technical colleges set up for promotion of innovation. Broadly, institutions may be conceived as to include political habits, practices, norms and rules regulating relations and interactions among people.

Technological knowledge is crucial to development. However, designing the right institutions to absorb, retain, advance and sustain knowledge, has turned out to be much more challenging. The efficiency with which knowledge is created and diffused depend on a variety of institutions promoting innovation. It is worth mentioning that the failure to

<sup>2</sup> It is not the intention of this paper to discuss science and technology as a new lending conditionality for developing countries, but to appraise the institutional requirements for the success of technology as conditionality.

Apart from the expected or direct benefits for the promotion of science and technology, the new lending "conditionality" for developing countries is the promotion of science and technology or funding geared towards the promotion of science and technology. Therefore, recent funding requirements by donors such as World Bank is that recipient countries can only benefit from donor funds and aid if they put in place "right" institutions to promote science, technology and innovation. This requirement is based on the premise that promotion of science, technology and innovation cannot take place unless right institutions are put in place not only to allow generation of scientific knowledge but also to allow diffusion of this knowledge2. The new focus on science and technology in Uganda calls for right institutions if Uganda is to benefit from investing in S & T. This paper is about strengthening institutions for science and technology in Uganda. The paper discusses institutions and the institutional challenges for the promotion of science and technology in Uganda, and proposes the nature of institutions required for S & T to transform society. The

c. What institutions are required for science and technology to develop and to transform

d. How can these institutions be strengthened for S and T to be effectively generated and

The paper proceeds as follows; section one conceptualises institutions of science and technology. Section two discusses the different institutional requirements for the promotion of science and technology, section three discusses the institutions for science and technology in Uganda. Section four discusses institutional challenges for the promotion of science and

Narrowly conceived institutions refer to structures such as research and technology institutes, universities and technical colleges set up for promotion of innovation. Broadly, institutions may be conceived as to include political habits, practices, norms and rules

Technological knowledge is crucial to development. However, designing the right institutions to absorb, retain, advance and sustain knowledge, has turned out to be much more challenging. The efficiency with which knowledge is created and diffused depend on a variety of institutions promoting innovation. It is worth mentioning that the failure to

2 It is not the intention of this paper to discuss science and technology as a new lending conditionality for developing countries, but to appraise the institutional requirements for the success of technology as

technology in Uganda, lastly section five draws conclusions from the discussions.

*innovation, extract the most value out of them.* www.logelproject.org 15/07/07

paper is guided by the following questions:

b. What are the existing institutions in Uganda?

regulating relations and interactions among people.

a. What are institutions?

**2. What are institutions?**

Uganda?

utilised?

conditionality.

*The lessons of the last two centuries have shown the crucial difference between having and not having the science and technology capability, even for countries with vast natural resources. The difference lies in being able to exploit these resources themselves or be exploited by others. In this new century, the winner will be the one who can, with capability of science and technology and*  innovate and promote benefits of science and technology is often due to failed institutions. This failure is further compounded by the gap between scientific knowledge generation systems and diffusion mechanisms. Scientific knowledge is erroneously seen as that generated in laboratories. Little attention is paid to the modes and mechanisms of diffusion and how this knowledge and skills could fit into existing systems. Thus, Chataway, Smith and Wield (2005: 3) argues that,

*capacity building in science and technology enables innovation that can enable countries meet their development goals and improve people's lives. But innovation is not something that happens in sophisticated research laboratories, it can happen also by developing new and effective approaches and institutions.*

The process of innovation is not only confined to formal arrangements, it involves significant elements of informal collaboration, learning and exchange of knowledge between individuals, organisations and across disciplines (Joanna Chataway, Smith, & Wield, 2005b). Science and technology should be understood as far from the conventional sense of building stocks of research infrastructure and trained scientists. Science and technology designed to work as selfcontained activities are insulated from the very systems they seek to influence. This gap between science and its market is rooted in old thinking that equates science and technology generation through formal research with innovation. This conventional view promoted the mistaken notion that scientists and technology specialists, through their research organisations, were the innovators and producers of new knowledge. Research and emerging global challenges such as environmental, diseases, climate change and poverty however, show that scientific innovations cannot provide solutions if insulated from other disciplines. Thus, Nightingale and Scott (2007), point out that the justification for public funding of the biological sciences is "… largely at odds with the outcomes because major causes of illness, such as poverty, lack of education, and poor housing and healthcare are social and political issues that are poorly addressed by the current science-intensive research systems". Thus we need to draw on more inter and multidisciplinary research and take into account that science and scientists do not exist and may not work in isolation, they do so within a network of other actors and require a supportive environment. A look at the collaborative and coordinating institutions becomes crucial for successful science, technology and innovation.

For the promotion of science and technology, we need to create different institutions that facilitate innovation, diffusion of knowledge and change, in addition to formal institutions for science, technology and innovation. Thus we need to create coordination, reward systems, accountability and governance institutions. The discussion that follow, focuses on different institutions necessary for the promotion of science and technology in any given country or community.

#### **2.1 Institutions for coordination**

There is need to build institutions that allow proper exchange of knowledge between different systems and actors. Whereas innovation is crucial for development, it is noted above, that diffusion of knowledge is much more required for sustainable development. There is therefore, a need for the existence of strong institutions to coordinate different actors and to promote proper integration of scientific knowledge into development goals. It is in this light that the Uganda National Council for Science and Technology (UNCST) was established. Thus, one of the objectives of the UNCST is coordination of all scientific and technological activities

Strengthening Institutional Capacity for Science, Technology and Innovation in Uganda 335

fellow scientists, because of lack of protection of their rights. Legal institutions are meant to

In the agricultural sector, access and use of technology depends on an enabling environment, thus, "the ability of the agricultural innovation system to be able to access, use and diffuse knowledge embedded in agricultural technologies depends on the presence of an enabling framework that supports the emergence of technological capabilities by strengthening existing linkages, promoting new linkages and fostering inter-organisational learning that leads to capital accumulation and technical change. Such an enabling environment, by definition, is one that strengthens the absorptive capacity of local actors while protecting their interests through a policy framework that recognises their legal rights and privileges, linkages, socio-cultural norms and historical context" (Bartel 2010 at http://www.atdforum.org/journal/html/2009-34/11/ accessed on 26/10/11). An enabling environment for technology and innovation in agriculture is defined as one that provides the actors, skills, institutions and organizations required to promote the use, dissemination, diffusion and creation of knowledge into useful processes, products and services. This is one that promotes right laws, structures and systems; systems that allow innovation for example systems that allow patent rights and promotes individual initiatives by being recognised as

Apart from legal and ethical institutions, the quality assurance institutions should be in place to promote science and technology. For example, the Uganda National Bureau of Standards (UNBS) not only challenges the quality of products, but also challenges the processes of production and the technology used in the production. Ministry of education is in charge of observing quality of teaching science and technology in schools. For example, it is a requirement that every secondary school to get registration as a teaching institution should have science laboratories. And to qualify this requirement, physical science subjects -

Developing an appropriate science and technology policy requires the involvement of multiple stake holders and to put into consideration the overall development programme. In addition, developing a sound S and T policy takes a number of stages ranging from policy agenda to policy evaluation. These stages require different institutions which must be well coordinated. A sound policy will depend on the extent stake holders are involved in the whole process of policy formulation. To what extent people who technology intends to benefit, participate in the design of the policy remains the key question? Often policy designs come as blue prints; it is a top-down process with limited participation of the people

**Note:** The description and categorisation made above is for analytical purposes and is not a blue print. Institutions are functional and may combine different functions; reward,

Uganda has gone through stages of transformation; Pre-colonial, colonial, post colonial up to the late 1980s and present day. All these stages have their own characteristics for science

**3. Strengthening institutions for science and technology in Uganda**

create an enabling environment for innovation and technological diffusion.

sole claimants to their efforts and contribution to technological innovation.

biology, physics and chemistry were made compulsory for all students.

the policy is intended to benefit or the implementers of the policy.

**2.6 Policy institutions and sub-systems**

coordination and control, and quality.

and technology

in the country through national programme geared to the national socio economic development and one of the strategic goals of the institution is to "improve or streamline national science and technology policy environment to foster scientific and technological innovation" . http://www.uncst.go.ug/index.php/about-us.html accessed on 27/10/2011

#### **2.2 Governance and accountability**

For the promotion of science and technology, enormous funding for research and human capacity is required. However, funders are attracted to organisations whose governance structures are clear and solid enough to ensure monitoring of results and financial accountability. The strengthening of governance systems will allow organisations to redirect funders from funding specific projects to providing funding for a wide range of projects and programmes. In addition governance and accountability institutions will observe that funds and research grants are utilised in a transparent manner and according to set goals, standards and that researches conducted are in tandem with national development goals and priorities.

#### **2.3 Need for local systems that enhance the capacity to innovate**

One of the most pressing needs in Africa in general and Uganda in particular, is to build local systems that enhance the capacity to innovate. Local systems to generate and apply knowledge and information are necessary to build absorptive capacity, accelerate poverty reduction, manage natural resources, better boost productivity, compete in local and export markets and improve well being.

To make the above a reality, there is a need to take into account local needs and contexts. The understanding of local needs and local context includes taking account of local abilities to find solutions. Local citizens should be involved in providing solutions for problems and challenges they face. Consultations with local communities should be made to find out if there are alternative technologies at the local level which can be improved instead of imposing new technologies on them. In addition, science and technology should be demand driven so as to address local needs.

#### **2.4 Reward systems**

There should be continuous support of scientists and researchers in the field of technology by rewarding excellent scientists and innovative researches. In its objectives, UNAS aims at establishing "a regular award scheme for recognition of outstanding achievements in science that are pertinent to the prosperity of Uganda". The presidential award scheme for best scientists was put in place to recognise science and innovation.

#### **2.5 Ethical, legal and Quality Assurance (QA) institutions**

Ethical considerations consider the way research is conducted, protection of research subjects and use of other people's research. In some instances this may be influenced by the existing legal systems. In this regard, one of the challenges facing researchers is the assurance of protection and patent rights. Uganda still remains miles far from granting patents to its renowned researchers. Therefore, sharing of researches and innovative knowledge is still limited. Individual scientists are not free to pronounce/share the process of their researches to fellow scientists, because of lack of protection of their rights. Legal institutions are meant to create an enabling environment for innovation and technological diffusion.

In the agricultural sector, access and use of technology depends on an enabling environment, thus, "the ability of the agricultural innovation system to be able to access, use and diffuse knowledge embedded in agricultural technologies depends on the presence of an enabling framework that supports the emergence of technological capabilities by strengthening existing linkages, promoting new linkages and fostering inter-organisational learning that leads to capital accumulation and technical change. Such an enabling environment, by definition, is one that strengthens the absorptive capacity of local actors while protecting their interests through a policy framework that recognises their legal rights and privileges, linkages, socio-cultural norms and historical context" (Bartel 2010 at http://www.atdforum.org/journal/html/2009-34/11/ accessed on 26/10/11). An enabling environment for technology and innovation in agriculture is defined as one that provides the actors, skills, institutions and organizations required to promote the use, dissemination, diffusion and creation of knowledge into useful processes, products and services. This is one that promotes right laws, structures and systems; systems that allow innovation for example systems that allow patent rights and promotes individual initiatives by being recognised as sole claimants to their efforts and contribution to technological innovation.

Apart from legal and ethical institutions, the quality assurance institutions should be in place to promote science and technology. For example, the Uganda National Bureau of Standards (UNBS) not only challenges the quality of products, but also challenges the processes of production and the technology used in the production. Ministry of education is in charge of observing quality of teaching science and technology in schools. For example, it is a requirement that every secondary school to get registration as a teaching institution should have science laboratories. And to qualify this requirement, physical science subjects biology, physics and chemistry were made compulsory for all students.

#### **2.6 Policy institutions and sub-systems**

334 Theoretical and Methodological Approaches to Social Sciences and Knowledge Management

in the country through national programme geared to the national socio economic development and one of the strategic goals of the institution is to "improve or streamline national science and technology policy environment to foster scientific and technological innovation" . http://www.uncst.go.ug/index.php/about-us.html accessed on 27/10/2011

For the promotion of science and technology, enormous funding for research and human capacity is required. However, funders are attracted to organisations whose governance structures are clear and solid enough to ensure monitoring of results and financial accountability. The strengthening of governance systems will allow organisations to redirect funders from funding specific projects to providing funding for a wide range of projects and programmes. In addition governance and accountability institutions will observe that funds and research grants are utilised in a transparent manner and according to set goals, standards and that researches conducted are in tandem with national development goals

One of the most pressing needs in Africa in general and Uganda in particular, is to build local systems that enhance the capacity to innovate. Local systems to generate and apply knowledge and information are necessary to build absorptive capacity, accelerate poverty reduction, manage natural resources, better boost productivity, compete in local and export

To make the above a reality, there is a need to take into account local needs and contexts. The understanding of local needs and local context includes taking account of local abilities to find solutions. Local citizens should be involved in providing solutions for problems and challenges they face. Consultations with local communities should be made to find out if there are alternative technologies at the local level which can be improved instead of imposing new technologies on them. In addition, science and technology should be demand

There should be continuous support of scientists and researchers in the field of technology by rewarding excellent scientists and innovative researches. In its objectives, UNAS aims at establishing "a regular award scheme for recognition of outstanding achievements in science that are pertinent to the prosperity of Uganda". The presidential award scheme for

Ethical considerations consider the way research is conducted, protection of research subjects and use of other people's research. In some instances this may be influenced by the existing legal systems. In this regard, one of the challenges facing researchers is the assurance of protection and patent rights. Uganda still remains miles far from granting patents to its renowned researchers. Therefore, sharing of researches and innovative knowledge is still limited. Individual scientists are not free to pronounce/share the process of their researches to

**2.3 Need for local systems that enhance the capacity to innovate**

best scientists was put in place to recognise science and innovation.

**2.5 Ethical, legal and Quality Assurance (QA) institutions**

**2.2 Governance and accountability**

markets and improve well being.

driven so as to address local needs.

**2.4 Reward systems**

and priorities.

Developing an appropriate science and technology policy requires the involvement of multiple stake holders and to put into consideration the overall development programme. In addition, developing a sound S and T policy takes a number of stages ranging from policy agenda to policy evaluation. These stages require different institutions which must be well coordinated. A sound policy will depend on the extent stake holders are involved in the whole process of policy formulation. To what extent people who technology intends to benefit, participate in the design of the policy remains the key question? Often policy designs come as blue prints; it is a top-down process with limited participation of the people the policy is intended to benefit or the implementers of the policy.

**Note:** The description and categorisation made above is for analytical purposes and is not a blue print. Institutions are functional and may combine different functions; reward, coordination and control, and quality.

#### **3. Strengthening institutions for science and technology in Uganda**

Uganda has gone through stages of transformation; Pre-colonial, colonial, post colonial up to the late 1980s and present day. All these stages have their own characteristics for science and technology

Strengthening Institutional Capacity for Science, Technology and Innovation in Uganda 337

Strengthen and promote the development of human resource capacity in science and

Coordinate all scientific and technological activities in the country through national

The UNCST works hand in hand with different research organisations responsible for developing different technologies in various fields. The National Agricultural Research Organisation for example, is responsible for the coordination of research in agriculture and

There are a variety of professional bodies aimed at not only protecting the rights of scientists but also to voice new needs and requirements for technological improvements and innovation. These bodies and institutions include; national medical research council, the Association of Uganda Engineers, National Agricultural Research Organisation (NARO), Uganda National Academy of Science (UNAS) and other autonomous bodies. Each of these bodies is geared towards promoting science and technology. For example NARO coordinates research in agriculture, food and science and technology, UNAS takes a multidisciplinary approach and brings together scientists from physical, biological and behavioural/social sciences. Objective number four of UNAS is to "encourage, stimulate, design and coordinate interdisciplinary and trans-disciplinary scientific research and development. Objective number five is to "get involved in planning, convening and coordination of scientific education programmes and help in the development and

The role of learning is fundamental to the development of technology, merging knowledge bases, and to maximize benefits from science and technology innovations. There is a need therefore, to create institutions to promote learning, research and innovation. Creation of education systems for innovation is crucial for science and technology capacity building and technological diffusion. I contend that there cannot be a viable science and technology policy if it is not underpinned by well designed measures for addressing issues such as, learning, technology diffusion and transfer, research and development. The need therefore to make the teaching of science in schools compulsory and the setting up different institutes that could directly link with local communities is

The teaching of science in schools in Uganda is a long-time practice but since the 1990s, this has received a lot of emphasis. Science subjects are emphasised and made compulsory at secondary education level, while, state funding for higher education especially in public universities is more inclined towards supporting students who excel in science subjects than

Universities are teaching science and technology tailored to local needs and to address development challenges. Mbarara University of Science and Technology (MUST) for example, has a variety of community oriented programs in medicine, science and

programme geared to the national socio economic development.

nurturing of high-level scientific and technological manpower in Uganda.

To coordinate and guide national research and development

to develop appropriate technology and plant varieties.

**4.2 Research and professional bodies**

**4.3 Institutions of learning and innovation**

the beginning of addressing the above challenge.

counterpart arts subjects.

technology.

The pre-colonial Uganda was characterised by progressive technological innovations. Scientific knowledge and innovation can be exhibited in blacksmithing and food preservation. Setting granaries some meters above the ground protected food from dump and rodents. This is still practiced in villages. In traditional Ankole and Kigezi, some families/clans specialised and were known for their skill, innovation and technological advance in pottery making, basket weaving and black smith. Technological advance and innovations in these areas was a preserve of such families and clans. We well know of specific families called "Abahesi" literary meaning blacksmiths in Ankole and Kigezi. These families, made hoes, knives, spears and other tools, from smelt iron. Although such families continue to exist in societies in Uganda, they play a limited role in science and technology and innovation and are less recognised in the process of progress.

Their contribution to science, technology and innovation was affected by colonialism which killed family initiative through importation of the foreign hoe, china plates to replace locally made clay-pots and plates. During colonialism, institutional arrangements to foster development in Uganda did not in any way emphasise technology and science (Akampumuza, 2005). Colonial economic interests were the primary focus of institutions to foster "development".

The post-colonial Uganda faced many challenges in which teaching of science and was confined to laboratory teaching. Studying science and technology was left as an individual choice with limited carrier or professional guidance. Schools operated without laboratories and science equipments, and sometimes without science teachers.

The National Resistance Movement (NRM) government which came to power in 1986 was the first government to institutionalise science and technology, research and innovation and to integrate them in the overall development planning. To streamline teaching of science and technology, the Uganda National Council of Science and Technology (UNCST) was established.

#### **4. Uganda National Council of Science and Technology (UNCST)**

The Uganda National Council of Science and Technology (UNCST) was established by an act of parliament in 1990 with its line ministry of Finance Planning and Economic Development. The UNCST was established as a semi-autonomous institution with the mandate to develop and implement strategies for integration of science and technology in the national development process. And to advise government in formulation of policies that enhances and fosters the integration of science and technology in Uganda's social, economic and cultural development.

#### **4.1 Functions of UNCST**