Noesa

167 transparency and environmentally-friendly market principles) and it returns the profits to the villagers as beneficiaries.

The aims of improving levels of local participation, building their capacity to manage their local resource, and promoting both the use and the potential of local resources necessitate a significant endogenous model in the context of Pasar Papringan’s plans for, and focus upon, rural development. However, the effort to develop placemaking as one of the intended outcomes, and to build connections between rural residences and urban visitors or collaborators, implies a deliberate combination of a rural development focus with a neo-endogenous model by Pasar Papringan.

168 The combination of art, culture, and nature principles of Noesa is an attempt to achieve sustainability through the use of potential local resources while promoting the rural ikat weaving culture in both rural and urban areas. In Noesa, the principles and rural problems that are associated with the neo-endogenous model are highlighted. As its mission, Noesa realizes that attaining sustainable livelihoods requires the alteration of modes of consumption in metropolitan regions while promoting an environmentally friendly mode of production in rural areas. The initial partnership between Daniel, Cendy, and Nisa aimed to link the rural craft products with broader markets in urban areas. In a further partnership between Noesa and Watubo, this issue remains one of their concerns, though they have started to focus on sustaining the culture and nature as well. Therefore, it shows Noesa’s concern for the limited opportunity for rural economic actors to access the broader markets, which are often located in urban areas. However, in contrast to the other two SE organization cases, Noesa also targets young urban people instead of merely focusing on the rural community to promote sustainable consumption.

b. Antecedents: Opportunity Identification, Multiple Stakeholders and Access to Capital

The opportunity identification of Noesa signals a typical neo-endogenous model. Both internal and external parties agreed to initiate the activities. Thus, both the stakeholders and the capital that are needed to develop opportunities in Noesa have been sourced from both internal and external agents, namely, Noesa founders, Daniel, and members of the Watubo group. The variety of resources alone testifies to the significance of the neo-endogenous model in Noesa.

Additionally, what is particularly striking in the Noesa case is the fact that both the internal and the external parties had already been independently established at the time of entering into a collaborative partnership. When compared to the other two cases, this project has contributed greatly to the shaping of opportunity identification in the neo-endogenous dynamic force model.

169 c. Process: Organization Governance

Noesa has adopted a neo-endogenous model for its governance approach. The relationship between the two independent firms distinguishes the partnership from one with a hierarchical structure. Noesa and Watubo’s relationship is governed by a network approach. These autonomous organizations engage in creating products or services based on implicit and open-ended contracts that are socially—rather than legally—binding. Their decision making is also based on negotiation. The contract between Noesa and Watubo can also adapt to environmental contingencies. The activities are dominated by Noesa and Watubo, which are civil and local actors, while the government and state are absent in organizing the business. Both parties—

Noesa as an external actor and Watubo as the internal actor—are equally dominant in this partnership. In many events and media coverage, Noesa and Watubo (mostly the leaders) participate together as partners. The two parties are equal because they depend on each other while remaining autonomous. As for Watubo, the role of its leader dominates its group partnership with Noesa.

d. Process: Operational Model and Business Performance

The main activity of Noesa is the production of ikat cloth; Noesa acts as a buyer of weaving products that have been produced by the rural communities. Noesa further processes the goods into ready-to-wear retail products. Even though it is a production-based sector, it does not focus on a single primary production sector. Rather, Noesa’s sales of local crafts commoditize the rural area as a marketing device, promoting its products by drawing upon Watublapi’s culture and the daily activities of Noesa’s partner groups. In fact, the Watublapi area was already quite famous for cultural tourism and its weaving production in the Sikka region. Noesa does not appear to have altered or generated a substantial new model of rural function. Noesa has not targeted rural communities as the intended consumers of their economic activities. Instead, the

170 rural function in Noesa is closer to the rural function of endogenous models, as well as linking to rural environmental sustainability efforts.

e. Outcome: Social Value Creation

Noesa’s activities from the rural development point of view are mostly about improving access to economic opportunity, networks, and knowledge, which encourage rural-urban connections.

Noesa’s capacity building attempts are related to enhancing the efficiency of weaving production and developing new natural coloring techniques. Noesa added the skills and knowledge to those Watubo had previously had. Hence, this was not all about importing external knowledge to rural agents, but rather about promoting the use of local natural and cultural resources. Throughout the process, Noesa has also contributed to an increase in young villagers’ participation in activities that support the sustainability of rural livelihoods.

However, there is no acknowledgment or seeming realization that local resources are an output of the program since Noesa does not appear to have altered or generated a substantial new model of rural functions. Attempts to improve the rural economic access are related to acts of overcoming social exclusion. Handicraft producers in rural areas often have limited access to broader markets due to geographical limitations and limited networks. Noesa helped not only to increase the sales of Watubo products, but also to engage the artists in events Noesa attended, and to interact with Noesa’s customers and networks. It created opportunities for Watubo to build its networks, enhancing the capital it needed, and promoting its independence. The case of Noesa presents a significant model for neo-endogenous rural development that draws upon the rural development focus of endogenous models as well.