Summary This paper presents a framework to explore agribusiness success in New Zealand. The framework provides the basis for historical analysis. It draws on existing theory based on the structure-conduct-performance paradigm but expanded to take account of firm strategy and the analysis of value chains.

Institutions involved in public policy and technological innovation are concerned with processes that influence the behaviour of people. This paper reports on research in the New Zealand dairy industry that is seeking to develop improved process models for managing change in a range of policy, industry and business contexts. The Practice Interplay Model was used to evaluate mediating methods for negotiating environmental and production outcomes within the context of a farm dairy effluent management case study. Significant misalignments between research, farming, extension and policy practitioners' expectations and perceptions of factors required for effective farm dairy effluent management were found. The combination of interactive workshops linked to quantitative verification and testing and follow-up interviews enabled a depth of investigation that was rich in information yet cost-effective in terms of research resources. The process used identified opportunities to change the actions of system participants and alignment between them. It enabled strategies to be agreed that would continually improve and strengthen the process of change. Further development and application of the Practice Interplay Model to policy problems, including the ongoing development of tools and techniques used within the methodology, has the potential to break though into a new policy-development paradigm in New Zealand.