Although innovation is widely recognised as essential for sustainable agribusiness and food security, the influence of public institutions and governance quality on innovation dynamics remains insufficiently examined. This study explores the interaction between institutional support and governance practices in fostering innovation for sustainable agricultural development. Employing a qualitative research design, in-depth interviews were conducted with policy experts from federal and state government agencies specialising in agricultural development, food security, and national strategy in Malaysia. The results indicate that institutional support is a critical external driver of agribusiness innovation, with its effectiveness largely dependent on governance quality, particularly transparency and accountability. By positioning governance as a key boundary condition, this study advances the innovation capability framework within the public sector context. The findings underscore the importance of coordinated inter-agency collaboration and transparent policy formulation to establish a resilient, innovation-driven agribusiness ecosystem.
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