The Specificity of Contract Agreements and Network Governance in Coastal Social Entrepreneurship: A Case Study of Coral Reef Conservation in Bali
DOI:
https://doi.org/10.70142/ijbge.v3i3.481Abstract
Coastal social entrepreneurs play a complex hybrid role in integrating economic, social, and marine ecosystem preservation missions. Unlike commercial corporations that rely on rigid formal contracts based on agency theory, social entrepreneurship requires relational governance. This article aims to explore the specifics of both formal and relational contract agreements in regulating actor relationships in coastal social entrepreneurship. Using a comparative qualitative case study method on two entities in Bali, namely Banyumilir (Kalibukbuk Village) and North Bali Reef Conservation (NBRC, Tianyar Village), this research analyzes how contract agreements, incentive systems, and collective rule enforcement are formed thru the lens of hybrid organization theory and social networks. The research results show that the specificity of contracts in coastal social entrepreneurship lies in the complementary nature between vertical formal legality and horizontal relational commitment, where contract enforcement is effective because it aligns the community's direct economic incentives with ecological sustainability.
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