When Culture Meets Innovation: Lessons from the Cocos (Keeling) Islands on Community-Driven Development in Isolation

Abstract

This academic article aimed to study the challenges and strategic approaches to fostering business innovation and human resource management within the unique context of the Cocos (Keeling) Islands, an Australian external territory with approximately 600 residents. Remote communities face significant constraints due to geographic isolation and limited resources, yet few strategic studies have analyzed the interplay between HRM and business innovation in such settings. This research employed a case study analysis drawing on historical, economic, and socio-cultural data to examine the transition from a feudal economic system under the Clunies-Ross dynasty (lasting over 150 years) to modern Australian governance established in 1955. A conceptual framework was developed through a systematic analysis of adaptive strategies and community resilience practices. The analysis identifies a five-pillar model for remote community development: culturally anchored HRM, resource-leveraged innovation, digital inclusion, equity-driven education, and networked resilience. The community has demonstrated adaptive capacity through initiatives such as the Cocos Islands Microgrid Project for renewable energy and community-based tourism leveraging the 80% Cocos Malay population's cultural heritage on Home Island. The framework provides actionable strategies for remote communities to balance economic viability, cultural preservation, and environmental sustainability. Findings offer policy recommendations applicable to Small Island Developing States and post-pandemic recovery planning, emphasizing the integration of traditional leadership structures such as musyawarah with modern digital technologies to build resilient, self-reliant communities.