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NEIGHBORHOOD INFORMATION IN BUYING CHOICES: A CONTEXTUAL INVESTIGATION
EXAMINATION
Trayaksh Siregar
Indonesian Hindu University, Denpasar, Indonesia
AB O U T ART I CL E
Key
words:
Neighborhood
information,
Purchasing decisions, Consumer behavior, Local
knowledge, Case study analysis, Proximity,
Reputation, Community insights.
Received:
22.06.2024
Accepted
: 27.06.2024
Published
: 02.07.2024
Abstract:
This study examines the role of
neighborhood
information
in
purchasing
decisions through a case study analysis. By
harnessing local knowledge, consumers can make
informed choices when buying goods and
services. The research explores how contextual
factors such as proximity, reputation, and
community insights influence consumer behavior.
Through qualitative analysis, the study highlights
the significance of neighborhood information in
shaping purchasing decisions and its implications
for consumer satisfaction and loyalty.
INTRODUCTION
The existence of Hinduism as a belief cannot be separated from community
development in Bali Province, including in Landih Village, Bangli Sub district, and Bangli Regency. It is
imparted to many individuals around here. The principles of religious spirituality, such as tri hita
karana, tat twam asi, panca sraddha, and other tri Hindu religious frameworks, become ingrained in
people's daily lives. Its goal is to develop into local wisdom values like ngayah, paras-paros sarpanaya,
sagilik-saguluk salunglung sabayantaka, and other similar concepts. Desa pakraman was the setting for
their actions.
The values of ngayah reflect the development strategy of procuring goods and services in the village,
cooperating with one another, and empowering the local wisdom system for the Balinese people. A
shared participation as a social worth comes from neighborhood shrewdness of the Hindu people group
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in Bali at first continuously shading each function since old times, completed by cooperating with every
one of the parts that do the service, working benevolently, introducing what has possessed both energy,
materials, expenses, and contemplations. The changing calling of society from an agrarian culture to the
modern and administration areas which obviously requests a more rigid and quantifiable time result.
In every ceremony and other development activity, it has transformed the values of cooperation into an
economic commodity. The condition, according to the Bali community, was a transition from ngayah
activity to me ayah. Being carried out to being bought together. The term "McDonaldization" is used to
describe this occurrence, which is the process by which the principles of fast food restaurants have
come to dominate a greater number of spheres of American and international life. The obtainment cycle
of labor and products as a component of the course of improvement execution in Landih Town. The
community is still managed in very simple ways that do not involve more of the community. They have
not been able to implement the fundamental principles of procurement in the village itself, such as
empowerment, mutual cooperation, effectiveness, and transparency. From the planning,
implementation, and supervision stages of development, community empowerment as a pattern of
participatory development approaches in the form of self-management activities in villages should
involve all social levels. Additionally, considering the bottom-up planning approach when making
decisions and avoiding the top-down approach pattern as much as possible, as the implementation
phase is still in its infancy. The planning area has not yet been affected.
The research question can be formulated as follows:
1) Why is it important to use local knowledge to purchase goods and services?
2) How will the procurement of goods and services be carried out using local knowledge?
3) What are the practical implications of purchasing goods and services based on local knowledge of
socioeconomic life?
The overarching objective was to thoroughly examine the circumstances surrounding and the basis for
the procurement of goods and services based on local wisdom, as well as its effects on the
socioeconomic life of the Landih Village community. The specific objectives are to comprehend and
analyze the significance of implementing goods and services based on local wisdom, to comprehend
and analyze the capacity of community implementation to implement goods and services based on local
wisdom, and to comprehend and analyze the effects of implementing goods and services based on local
wisdom on the socioeconomic community.
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METHODS
With a qualitative approach, the purpose of this study is to investigate the procurement of goods and
services based on local knowledge in Landih Village, Bangli Subdistrict, and Bangli Regency. Subjective
examination is a kind of exploration produces discoveries can't be accomplished utilizing factual
techniques or different strategies for evaluation (estimation). According to Moleong (2007), Kirk &
Miller (1986), qualitative research originated from qualitative observations rather than quantitative
ones. Measuring the level of a particular feature is one aspect of quantitative observation. The observer
must be aware of the thing's characteristics before they can observe it and find something. The
following factors were taken into account when conducting the research in the village:
1) Landih Village manages the budget for village expenses;
2) There is still a social and cultural life in the village;
3) The village's inhabitants appear to be very innocent and straightforward, but their local wisdom
values do not currently have an impact on development-related social and cultural life; and
4) to the best of the researcher's knowledge, no one else has looked into how this village gets goods and
services.
According to Sujarweni (2014), tests, interviews, observations, questionnaires, surveys, and document
analysis are all methods of data collection. This study was carried out using methods for document
study, interviewing, and observation. The systematic observation and recording of symptoms that
appear on the subject of the study is called observation. This participatory observational study went
directly to the field to observe and participate in community activities at meetings at the banjar, sekeha,
and village meeting levels. Additionally, social, cultural, and religious activities, as well as the process
of building facilities and infrastructure, were observed in their actual implementation. It also conducted
economic, educational, and public health activities.
According to Moleong (1989), interviews are conversations with a specific purpose that are held by two
parties: the interviewer, who asks questions, and the interviewee, who responds to those questions.
These conversations can also be recorded openly, and the results of the interviews can be shared with
procurement actors, village government officials, village apparatuses, custom village officers,
community leaders, providers of goods and services, such as shop owners, contractors, foremen,
artisans, craftsmen, and other members of the general public The Landih Village community's
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participation in procurement activities was documented during interviews with the community (Van
der Vaart et al., 1996; 1998, Virolainen; (2016) Molavi & Barral The interviewee's name, age, address,
profession, and other family information are typically included in the material. It focuses specifically on
how the purchase of goods and services affects their socioeconomic life in terms of involvement,
benefits, and impact.
Documents techniques for study or documentation, such as looking at meeting minutes, attendance
records, official letters about the planning, preparation, and execution of tenders, as well as the stages
of self-management or contract implementation. In addition, the village's mid-term development
planning documents, strategic plan, work plan, and budget, as well as the terms of reference and reports
on the activities carried out in each program and activity, were the subjects of a study on development
planning and budgeting in Landih Village.
RESULTS AND DISCUSSIONS
Important reasons for using local knowledge to acquire goods and services a) Legal reason
Article 1 paragraph (1), Perka LKPP No. The village's procurement of goods and services, whose funding
comes from the village expenditure budget, is governed by regent/mayor regulations in accordance
with LKPP head regulation and taking into account the socio-cultural conditions of the local community,
as stated in resolution 13/2013. The phrase "socio-cultural conditions" means that the procurement
process must as closely as possible adhere to the capabilities, circumstances, education level, activities,
traditions, and social systems of the actual village.
The actual expectations are that the village's procurement of goods and services can operate in
accordance with the community's socio cultural conditions, which have not yet been realized. Bangle
Official Guideline No. 4/2016 regarding the village's service procurement as mandated by the Perka
LKPP has not yet regulated this issue. According to Weber (2006), all state activities fall outside the
purview of legislative and judicial processes. Because creative administration is not an arbitrary act of
freedom, the forgiveness area, personal feelings, and judgments are felt. As a result, people are
accustomed to demanding freedom and superiority of individual circumstances. Because the regulation
of socio cultural conditions is so crucial, the individual's opportunities to participate and demonstrate
creativity should be included in the regulations. It is reasonable to assume that their implementation
was carried out in accordance with the socio cultural conditions of the local community and was
accepted by all parties interested.
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b) Reasons of a technical nature among the reasons of a technical nature is the village's limited capacity
for acquiring goods and services through the use of human resources, one of the fundamental resources
for development implementation in terms of quantity and quality. The fact that the number of
employees involved is still relatively small and only graduated from senior high school indicates that
the quantity and quality of human resources in this field are not at their best.
It has to do with technicalities and mutual cooperation as values for putting local wisdom into practice
in the form of ngayah. It also appears that the community's implementation is not optimal. According
to Turner (2016), the social exchange is crucial for achieving reciprocity within a social framework.
According to the social view theory, ngayah is the actual exchange. In a similar vein, the reason is that
the empowerment system has not functioned properly, with poor community participation at all stages
of the procurement of goods and services. The procurement of goods and services in the village has not
positively contributed to the welfare of the community because it has not encouraged the improvement
of their business results and capabilities;
c) Economic reason
Being unable to provide business actors with opportunities due to their lack of motivation in this village;
it has not yet fully provided economic benefits, primarily in the form of employment in physical
development activities, but it has not produced new entrepreneurs in this village, either as traders or
contract workers.
d) Cultural reason the procurement stage of goods and services is also a cultural process. As a result,
many traditional and cultural activities are carried out, such as making decisions through sangkep
(deliberation), ngayah (mutual cooperation), and community gathering through kulkul (kentongan
sound). This begins with the requirement that every official government activity always works in
conjunction with desa pakraman, sekeha, and dadia, as well as other traditional groups, or with
traditional government instruments or systems. Social capital, on the off chance that it is played in
certain (social) spaces, can be utilized as a strength in gathering representative capital, in particular
culture, and religion. According to Bourdieu's generative structure theory, the strength arena is the
realm. Resources (capital) and specific access to the power hierarchy are the subject of conflict.
e) Religious justification A development project is a way to fulfill one's life's responsibilities
—
dharma,
which also means yadnya. Book II of the Bhagavad Gita.
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Karmanye evadhikaras te ma phaleshu kadachana, ma karma-phala-hetur bhur ma te sango
‘stv akarmani You are entitled to carry out the responsibilities you have been given, but you are not
entitled to the outcomes of your actions. Try not to view yourself as the outcomes reason for your
exercises, and don't be limited by the propensity, not doing your commitments.
As a result, as part of their service, the residents of this village engage in the procurement of goods and
services because they believe that by doing so, many aspects of social, cultural, and religious life will be
preserved. Part of living the swadarma of life is to improve one's quality of life and provide for one's
family by improving one's economic well-being. From an economic standpoint, making use of the
opportunities that are available, including development programs is excellent as a manifestation of
religious values and the goal of Hindu life.
Using local knowledge to implement procurement of goods and services a) Planning procurement of
goods and services Planning is the process of deciding what goals will be pursued over time and how
those goals can be accomplished (Terry & Rue, 1992). According to the Sarassamucaya Sloka 79 book,
the thought process is the source and beginning of all human activities in this world. Manah nimitaning
niscaya jnana, dadi pwang niscaya jnana, lumekas tang maprawrtti, and matangnyan manah ngaranika
pradhanan mangkana are all examples of kunang sangksepanya.
Translation:
The decisive factor is the mind; If the person has decided how they feel, they start saying or doing the
thing; subsequently, the brain is the primary source (Sudharta, 2009) With respect to sloka, then, at
that point, acknowledging something great including the acquirement of products/administrations in
the town should be founded on great starting idea, great conversation, and great execution also. At the
planning stage, the process of identifying needs, determining the activities of goods and services,
determining how to procure goods and services, scheduling the implementation of goods and services,
and budgeting for goods and services are all part of the procurement implementation based on local
wisdom. The big procurement planning of goods and services is part of putting the management
function into action. For instance, planning involves determining goods and services activities, how to
procure goods and services, scheduling the implementation of goods and services, and budgeting for
goods and services.
The job of desa adat is exceptionally enormous in supporting improvement program arranging through
the obtainment of merchandise/administrations. This was in line referenced by Pitt and Macpherson
(1974) in Gorda (1999), expressed customary establishments really support the execution of
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advancement programs. According to Gorda (1999), stated local organizations (traditional institutions)
are colored by traditional values, which are preventing the emergence of reforming forces (innovators)
and simultaneously preventing development in society, in contrast to Lerner's (1995) opinion.
Nonetheless, this isn't viewed as long-lasting. However, global capitalism-driven developments will
distort traditional values.
b) Goods and services procurement preparation at this stage, start functions in the procurement
management of goods and services are actuated and controlled. The field implementation activities
start to run. Self-estimated prices, draft agreements, and technical process specification documents are
all examples of the actuating function's output. The controlling capability additionally goes hand under
the method involved with planning records, the structure is a survey of all reports until they get records
that meet the prerequisites for additional obtainment stages. If the activity is self-managed and planned,
procurement will occur. The steps include making self-management plans in terms of a form of
reference, setting goals for self-management, choosing organizers for self-management, figuring out the
cost budget, and setting schedules for self-management. However, if an activity will be carried out by a
provider of goods or services. The process includes creating a draft agreement, estimating the price for
the goods or services themselves, and determining their technical specifications.
In Landih Village, selling goods and services is still done in a traditional way. This is in line with what
Siahaya (2016) said about one of the characteristics of traditional practical procurement of goods and
services. It is the readiness of specialized particular arranging that doesn't include many gatherings
connected with the acquirement of merchandise/administrations. The functions, implementation of
processes, planning, participation, costs, interaction between actors, technology, and professionalism
of the two procurement practices are fundamentally different. Traditional practices for purchasing
goods and services include the purchase of goods and services. Taking into account the local socio-
cultural values and culture, the policy implementation process has been carried out appropriately.
Implementation of goods and services based on procurement Based on field observations, the
implementation of development with support from desa adat (traditional villages) went very well, both
in terms of the application of customary rules, the provision of land, the participation of traditional
officers and manners, the utilization of facilities that belong to traditional villages, and other issues that
are associated with traditional villages. This is because the current budget pattern also allows for many
programs that are part of desa adat, including customs, physical and non-physical growth, and
development. In a self-managed manner, they are both direct subjects and objects of the village's
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development. Building synergy between the service and adat villages is important because it puts the
community at the center of development.
In self-managed procurement of goods and services, the management implementation functions are
fully applicable, beginning with the planning and organizing functions during the planning and
preparation stages and continuing through the actuating and controlling functions during the
implementation stage. The implementation of goods and services is an effort to build harmony between
parahyangan, pawongan, and palemahan in the context of implementing village autonomy after
considering the values of local wisdom. Its exercises include all degrees of society including the
development of sanctuaries, the execution of the dewa yadnya service, the support of hallowed objects
inside the advancement structure in the parahyangan field. Self-management is implemented in Landih
Village through the provision of technical training for farmer, craftsman, and PKK groups, as well as
improvements to education and health services and other areas within a pawongan development
framework. As well as foundation advancement like street framework, school structures, and other
public offices inside the improvement system in the palemahan field.
There aren't many providers in this village who have used providers to get goods or services. The way
that there are relatively few exercises in the financial plan which are brought out through suppliers
chiefly for the development work type, additionally because of the quantity of development specialist
organizations in the town. This is as yet restricted and business entertainers are not filling in this field.
The suppliers association of products/administrations is simply restricted to the contribution of
manufacturers and development laborers in the development work type, and the few provider's
inclusion for instance merchants and providers in the arrangement of merchandise, materials, and gear
in the execution of work through self-administration. Implications for the implementation of service
goods based on local wisdom in the procurement process
a) Jurisdictional Implications the village's procurement rules for goods and services have not
accommodated many technical criteria related to the values of local wisdom as a social, cultural, and
religious form of community involvement. They have made juridical ramifications for the arrangements
as a lawful reason for obtainment executing of products/administrations in the town. According to
Wirawan (2012), this is in accordance with the view that the rule of law is a means of regulating
relations between elements in interdependent societies and increasing social integration. If it is not
strictly regulated, it may be challenging to carry out and achieve the village's goals of acquiring goods
and services in order to achieve prosperity based on the socio cultural conditions of the community.
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b) Technical implication Because activities management is still in the scope vortex of the village
apparatus and some community leaders, the procurement process of goods and services has not yet
implicated HR involvement in managing the process and stages of procurement. Because they are
thought to lack knowledge and expertise in the procurement implementation of goods and services, the
general public or community leaders frequently appear to be ignored and not involved in the crucial
procurement processes of service goods. At the work implementation stage, community involvement is
more prevalent, whereas villagers have the potential to advance and develop when they are empowered
and given opportunities. Due to the majority of the work being performed by paid individuals, the
budgeting of development, social, cultural, and religious activities currently has implications for the
decline in the value of community cooperation.
The procurement of goods and services serves as a medium for the actors involved in the
implementation and the Landih Village office environment to carry out their responsibilities as the
village apparatus. It implies that the stages of the procurement process for goods and services are
empowerment processes from the control dimensions of development implementation and
implementation of budget realization village government as a means of increasing their capacity as part
of an empowerment program for community leaders or certain community elements like traditional
leaders, leaders of community organizations/mass organizations, leaders of community
groups/community groups, and intellectuals in the village.
c) Implications for the economy The provision of goods and services in Landih Village has an impact on
the creation of new jobs, the promotion of development initiatives, and the support of social, cultural,
and religious endeavors. Society's financial burden is lessened. Implementing labor-intensive
infrastructure development opens up new revenue streams. In any case, the obtainment execution has
not had the option to give monetary advantages to the experts government assistance has not had the
option to develop new business entertainers participated in sanctioning and exchanging
administrations.
d) Implications for culture The process of purchasing goods or services is regarded as a cultural event.
Then, it becomes clear that it has an effect on products. At each stage, they are traditional and cultural,
like making decisions through sangkep (deliberation), putting activities into action through ngayah
(mutual cooperation), and collecting the community through kulkul (kentongan sound). When
cooperating with traditional government systems or instruments or villages in the implementation of
the stages and procurement processes of goods or services, the cultural implications can take the form
of cultural activities. The desa pakraman's role in development implementation is very strategic. At
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every stage, desa pakraman officers and village officials, who are part of the formal government, work
closely together.
e) Religious implications The transition of the community's busyness orientation from an agrarian to a
service culture, with time calculations becoming more rigorous, measurable, and routine, has
implications for the implementation of ngayah in preparatory activities and traditional religious
ceremonies to be more practical, brief, and even simplified in some instances from being made into
buying. Making banten, for instance, and ceremonial infrastructure facilities, which were previously
performed in conjunction with krama adat (customary manners) through ngayah, are now partially or
even entirely purchased from providers of goods and services.
The McDonaldization phenomenon occurs in the same way that during the execution of religious
ceremonies, individuals no longer produce but rather purchase and even accumulates some goods
related to the requirements of the ceremony. For instance, the principles of fast-food restaurants
provide everything related to the execution of the ceremony in a timely manner and are readily
available at any time. Even so, management implementation completes certain conditions. As a result,
the community and desa adat only need to take care of it as long as they have enough money.
The exercises brought out through buying are essentially not following nearby insight values locally, on
the grounds that they refute the ngayah custom and common collaboration. Although the budgetary
assistance is very helpful in alleviating the strain on their lives, it will continue to have long-term effects
on the community's reliance on the government for social and religious activities. According to Soetomo
(2011), this will lessen the spirit of independence and sincerity in service. The principle that should be
followed is to assist individuals in assisting themselves if external stimuli are intended as forms of
assistance. As a result, it must be maintained to avoid dependency on outside assistance. Although it
may seem straightforward to say, carrying it out is anything but. Numerous outside improvements that
really cause reliance, or if nothing else appear to be powerful in driving the elements of society, yet just
as long as the boosts run. The social dynamics slowly return to normal once the stimuli are stopped.
After recognizing that the explanation ought to be stimulant rather than the primary value, and that it
ought not to be provided continuously to stimulate the community's potential, try to use the form of
initial capital that is anticipated to develop even stronger in supporting the active community role in
carrying out its activities, including the improvement of the community welfare at Landih Village from
the perspective of the Hindu economy.
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Finding
There are a few verifiable discoveries from the review results, in particular the uniqueness of the
specialized obtainment execution of products/administrations in the Landih Town as local area support
appeared by a delegate framework through components of the town consultative organization [BPD],
people group pioneers, strict pioneers, family government assistance improvement [PKK], kelihan
sekeha, and different components. Procurement of goods and services based on local knowledge has a
short-term effect on easing the community's social obligations, but it does not encourage the
development of potential local resources when working with the natural resources that are available.
As a result, it has not been able to encourage emerging new business actors in the village or realize an
increase in community capacity in the business sector. However, because customary leaders and
government representatives were involved in its implementation, as well as desa adat-owned
infrastructure systems and facilities, the procurement of goods and services has been able to increase
the socio-cultural activities of indigenous communities in this village.
CONCLUSION
In general, the Landih Village purchases goods and services for reasons that have implications for legal,
technical, economic, cultural, and religious aspects. Through the implementation of the village
expenditure budget, it is also implemented as a form of development to produce the output of goods
and services that have been predetermined in the procurement plan itself. As a result of the
implementation of procurement practices that always involve desa pakraman, both for the involvement
of customary officers, the use of systems and owned media, the customary village, and the involvement
of the indigenous people themselves, procurement of goods and services in the village has had positive
consequences, including an improvement in the community's socio-cultural life. Despite the fact that
the lack of interest in new business actors has prevented it from encouraging the expansion of
community economic progress. Due to budgetary support provided by the government for the
execution of religious ceremonies and the construction of holy sites, the acquisition of goods and
services also failed to promote community independence. It has diminished the ngayah and go tong
royong (community cooperation) tradition.
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