Abstract
This study assesses the economic role of Traditional Ecological Knowledge (TEK) as an informal institution in Georgia’s agricultural sector and examines how it is transformed into economic outcomes through creative management.
The research employs a mixed-method approach with a comparative design (Eastern vs. Western Georgia). Data were collected through semi-structured interviews and questionnaires conducted among small and medium-sized family farms. TEK is operationalized using indirect indicators, including production diversification, collective labor practices, and trust-based relationships.
The findings indicate that the economic role of TEK varies significantly with the level of market integration. In Western Georgia (low integration), TEK is associated with income stability (H1) and cost reduction through collective action (H2). In Eastern Georgia (high integration), TEK-based products achieve price premiums (H3a); however, this is accompanied by increasing standardization and a reduction in practice diversity (H3b), reflecting a tension between economic efficiency and adaptive diversity.
Traditional Ecological Knowledge functions as a context-dependent economic resource. Its full replacement is suboptimal; instead, adaptive integration with modern management practices represents a more effective strategy, provided that the negative effects of standardization are mitigated.