Formal Institutions Research Articles

Group Consciousness, Organizational Membership, and District Choice: Evidence from the Afro-Colombian Reserved Seats

AbstractNumerous countries around the globe have undertaken efforts aimed at enhancing political representation. One of these efforts has taken the institutional form of reserved seats or ethnic districts where individuals must choose where to deposit their votes. In this paper, we ask if group consciousness and organizational membership affect the choice to vote on these types of districts. Using a mixed-methods approach by combining semi-structured interviews with elites and a subgroup analysis of a conjoint experiment in a sample of Afro-Colombians, we find evidence that group consciousness affects the preferences for ethnic districts over territorial ones. Contrary to initial expectations, we observe that membership in ethnic organizations does not significantly alter preferences for ethnic districts among surveyed individuals. These findings indicate that individuals with high levels of group consciousness tend to choose to participate more in mechanisms and institutions that can enhance the group’s political representation.

Toward sustainable smart agriculture in a developing country: An empirical analysis of green firms determinants

AbstractThe significance of green entrepreneurship in achieving socioeconomic and environmental goals has received widespread recognition in academic literature. However, despite this acknowledgment, the internal and external variables influencing the expansion and sustainability of green agricultural enterprises have not been thoroughly studied and explored in the literature. This research aims to test the theoretical Green Agriculture Support Framework (GASF), suggesting internal and external support elements that, when strategically aligned, foster the growth of green agriculture enterprises, particularly those leveraging technologies and tools associated with Agriculture 4.0. To this end, we utilized survey data collected from managers and employees of green enterprises located in Pakistan. The collected data was analyzed using the structural equation modeling (SEM) method, incorporating the partial least squares (PLS) approach through SmartPLS software. The findings imply that external variables (formal Institutions, Government Support, Culture) have significant impacts on the development of green enterprises and that internal factors (Technology, Talent Management) have somewhat limited impacts. Consequently, policymakers must concentrate on creating strategies and measures to enhance the external environment of an organization, that is, intensive government support, less rigid formal institutions and their policies, entrepreneurial culture, and overall improved economic condition of the country, and be cautious about the internal factors like rigid and outdated technology and talent management policies, that may hinder the development of such enterprises. As a result, using the organismic integration theory (OIT) theoretical lens, this research contributes to the literature by providing empirical evidence on the various internal and external factors that significantly affect the growth of innovative green agriculture enterprises. A thorough understanding of green determinants assists in identifying the areas that require attention of policymakers for the effective growth of the green agricultural sector in an economy, leading to valuable implications for green policies.

Gathered: A Theology for Institutions in a Changing Church

Practical theology has historically engaged in sustained theological reflection on the practices of the Church that intersect with the practices of the world. As field of study, it engages in interdisciplinary engagement that combines social and theological forms of reasoning and analysis. As a broader field of praxis, it seeks to support the conditions where people of faith are formed, and communities of faith may flourish. In both expressions, practical theology exists in a dynamic relationship to institutions (e.g., congregations, denominations, universities) and contributes research and praxis that supports the future of institutions and the faith they mediate. While institutions are often the source and site of practical theology, “institutions” are taken for granted as a clearly-identifiable social form and a fixed expression. However, transnational changes in congregations and related faith-based institutions require an account of the nature and role of institutions within practical theology. In this gap, this paper advances a two-part argument: first, institutions are sites of multimodal gathering, creating containers for various forms of encounter where individuals and communities gather around a shared context, shared stories, shared practices, shared resources, and a shared journey. Second, theology for institutions can be sustained by attending to five modes of institutional engagement and analysis that are marked by attention to shared context, narratives, practices, resources, and a journey. Three sections advance this argument. The first part introduces three different situations of institutional encounter to question the relationship between theology and institutions amid a changing organizational landscape. The second part engages Alasdair MacIntyre as an interpretive framework to identify the gap of institutions in the field of practical theology. The third part concludes by detailing the structure of a theological account that resolves this gap in the field and may attend to the forms of gathering institutions provide.

A regional perspective on the privatisation of Chinese state-owned firms

ABSTRACT This study examines the impact of regional formal and informal institutions and the regional origins of private shareholders on the privatisation efficiency of Chinese state-owned enterprises (SOEs). Using a difference-in-differences method to examine 63,599 firm–year observations, we find that, on average, privatisation enhances the capacity utilisation efficiency of Chinese SOEs. That positive effect is stronger in regions with higher marketisation or more embedded in Confucianism. Interestingly, private shareholders from mainland China enhance capacity utilisation, but foreign shareholders exert no significant effect. Moreover, Hong Kong–Macau–Taiwan shareholders weaken the positive effect of privatisation on capacity utilisation in both low-marketised and high-Confucian regions.

Emissions trading, corporate social responsibility, and innovation quality -based on the perspective of formal and informal institutions

ABSTRACT High-quality green innovation plays a significant strategic support role in high-quality economic developments. Drawing upon institutional theory and property rights theory, this paper investigates the drivers of green innovation quality (GIQ) from the perspectives of formal and informal institutions. Emissions Trading Schemes (ETS) represent formal institutions designed and implemented by governments, while Corporate Social Responsibility (CSR) represents informal institutions. The study finds that ETS significantly enhances GIQ. Moreover, CSR significantly and positively moderated the relationship between ETS and GIQ, indicating that the synergistic interaction between formal and informal institutions stimulates superior innovation quality. This paper contributes to the understanding of the relationship among government regulations, corporate ethics and responsibility, and innovation quality. This paper offers recommendations for environmental policy and management strategies.

An investigation of Factors that Cause SMEs to Default on Loan Repayment

Small and Medium Enterprises (SMEs) have been asserted to be the bases of economies worldwide, including Zambia, playing a major role in economic growth. However, they often struggled with loan repayment, raising the questions why they faltered in fulfilling their financing obligations. This study explored some of the factors contributing to SME loan repayment failures. This research focused on Chipata Business Area, which was currently dominated by SMEs, to uncover the challenges SMEs faced with regard to repaying loans to the financial institutions. Studies show that SMEs in the country, often resorted to informal financial channels due to lack of collateral to access finance from formal institutions. Even when loans were obtained, repayment remained a challenge for most SMEs. Understanding that phenomenon was crucial for future policy considerations to promote economic growth and financial stability in Zambia.

The Personalist Leadership Style of Fabio Vásquez: A Case Study on the Origins of the ELN

This article examines the personalist leadership style of Fabio Vásquez, a founding member of the Ejército de Liberación Nacional (ELN), the Colombian guerrilla group. Personalism, as a theoretical framework for understanding Latin American leaders, has primarily focused on traditional political practices, emphasizing the tensions and conflicts among formal institutions, political parties, and personalist politicians. While these studies provide valuable insights, they overlook leaders who operate outside conventional political structures who also rely on personalist strategies to attract and retain followers. This article seeks to bridge this gap by presenting a case study of Vásquez’s leadership style. In an era marked by the resurgence of populism and renewed interest in the effects of personalism on conventional politics, this article argues that examining personalist leadership within revolutionary insurgent groups that reject conventional party politics is necessary for a thorough understanding of the phenomenon. In particular, it offers a comprehensive overview of how Vásquez’s personalist strategies shaped the ELN’s early insurgency, ultimately revealing the strengths and vulnerabilities of such leadership within revolutionary movements.

Resident Participation in Environmental Governance of Sustainable Tourism in Rural Destination

The rapid development of rural tourism has placed significant pressure on the rural environment, and relying solely on the government and market forces is insufficient for effective governance. It is urgent to integrate endogenous rural forces into environmental governance. The development of social behavior theory offers new insights into exploring sustainable approaches for resident participation in environmental governance in rural tourism areas. This paper, based on the Stimulus-Organism-Response (SOR) theoretical framework from social behavior theory, outlines the entire process of rural tourism residents transitioning from individual stimuli to psychological responses and ultimately to participation in environmental governance. This study combines the Motivation-Opportunity-Ability (MOA) model to analyze the stimulus factors affecting local residents and jointly constructs a path mechanism model for resident participation in environmental governance in rural tourism areas. A total of 462 valid questionnaires were collected through a survey, and the Partial Least Squares Structural Equation Modeling (PLS-SEM) method was used for empirical testing to determine the path coefficients between variables. On this basis, a system dynamics model was constructed to simulate the dynamic evolution of the relationships between variables. This study found the following: (1) In the process of rural tourism, residents’ participation in environmental governance relies on motivational factors at the stimulus level to play a core leading role; opportunity factors act as catalysts, and ability factors serve as auxiliaries; participation willingness at the organism level plays a crucial role. (2) Material pursuit and formal institutions are the strongest single sustainable factors for residents’ participation in environmental governance in rural tourism areas; combinations of variables such as local attachment, governance knowledge, and governance identity have significant effects. It is recommended that future rural tourism leverage government guidance, coordinate interests, and adhere to a collaborative development approach to ensure the sustainable development of the rural tourism environment.

Founders’ Characteristics and Startups’ Funding Opportunities Around the Globe

In this paper, I investigate the eleven largest startup markets in the world to uncover whether female founders have a disadvantage in the amount of funding received by their respective startups. I am also interested in whether country-level factors such as the level of development and quality of formal and informal institutions can impact the results. Moreover, I research founders with formal technical education to show if they have any advantage while funding their startups. I investigate more than 3,500 international startups during the period of 2017-2022 while utilizing CrunchBase database. I uncover that female founders are at a disadvantage in funding for their startups in all 11 countries of interest. Such results are more pronounced in developed countries, those with better functioning formal institutions and more individualistic populations. The disparity between male and female-led startups’ funding is especially pronounced in debt financing as well as seed round of equity financing. The technical education of male and female founders does not provide any advantage in terms of the funding opportunities.

Climate clubs and firm environmental performance: A regional institutional perspective

This research focuses on informal club-based institutions to boost a firm's engagement in environmental practices. Specifically, we investigate the effect of a firm's climate club membership on its corporate environmental performance. Our empirical analyses rely on a sample of firms from 142 Western European regions during 2011-2019. Results show that stronger climate club engagement of firms within a same region of a focal firm may act as an informal institution, improving the latter's environmental performance. We also find that the impact of those informal club-based institutions outsizes the effect exerted by the quality of formal regional institutions, and that strong informal climate club-based institutions might be able to partly replace the role of regional formal institutions in that ESG domain. Finally, we delve into several mechanisms potentially driving the observed impacts of regional formal and informal institutions on firms’ environmental performance.

Disconnected Connections of Learning Beyond Formal Schooling Through Human–Computer–Human Interactions

AbstractThis article originated from a working group on “Learning beyond formal schooling through human–computer–human interaction (HCHI)” convened at the UNESCO EDUSummIT 2023 in Kyoto (Japan). A polylogue approach was adopted by engaging eight co-authors whose diverse perspectives culminated in propositions that addressed the pivotal question: How should the connections between formal, non-formal, and informal learning be considered in a digitally mediated world? Formal learning is typically structured, organized and chronologically arranged institutional learning, whereas informal learning is associated with everyday learning across contexts throughout one’s life, and non-formal learning is a hybrid of these forms of learning. Considering the growing prominence of informal and non-formal learning in a digitally mediated world, the evolving learning ecosystem calls for a recalibration of the emphasis on formal learning. In this regard, HCHI has the potential to mediate human–human interactions, thereby bridging formal and informal learning. Our articulated position is to preserve the distinct boundaries and inherent complexities of each type of learning while creating opportunities or ‘bridges’ to authentically draw on the processes of each through meaningful actions. The polylogue yielded three propositions to bridge the connections between formal, non-formal and informal learning spaces in a digitally mediated world: (a) formal education institutions can establish strategic alliances and collaborations with learning organizations beyond the formal educational system, (b) the creation of digital learning communities within formal and non-formal spaces exemplify a paradigm of operation in an unregulated, student-centric cohesive space where the educator is a co-participant, (c) the recognition of the value of informal learning experiences by formal education institutions is critical, with emphasis on the learning process rather than the product.

Institution and land transfer contract stability: Evidence from Jiangxi, Jiangsu and Liaoning provinces in rural China

Stable transfer contracts are essential for the development of the land market. This analysis investigates the impacts of different institutions and their interactive effects on the stability of land transfer contracts in rural China. Based on a survey dataset of 833 farmers from three provinces, we demonstrate that tenure institutions have a significantly positive effect and that informal social relationships have a significantly negative effect. Additionally, rules that are relevant to village self-governance strengthen the effect of formal tenure institutions and weaken the effect of social relationships. This finding indicates that complementary and substitute interactive effects exist between these two groups of institutions.

Hidden conflicts? Revealing power mechanisms in collaborative governance for redeveloping heritage districts: The case of Dashilar, Beijing, China

ABSTRACT The redevelopment of Chinese heritage districts increasingly adopts collaborative approaches, raising concerns about power dynamics in these processes and their potential impact on resolving conflicts of interest through collaboration. This study establishes a multi-dimensional framework, examining arenas and sources of power to uncover power mechanisms and their impact on collaborative governance in the redevelopment of Dashilar, Beijing, China. Through ethnographic research, we found that institutionalized collaborative decision-making empowers participants to have the final say on relocation and renovation decisions. However, biased mobilization and discursive practices, with different sources of power utilized, affect collaborative processes and outcomes. Over time, collaborative decision-making results in elite control of Dashilar’s historic fabric and its subsequent gentrification. The government consolidates its power by controlling economic resources and influencing land use decisions. Crucial conflicts remain obscured, weakening the interests of residents and market actors. To understand power in collaborative governance, analysis must encompass both sources and arenas of power, transcending observable interactions within formal institutions to include informal practices.

Cultural norms and tax compliance: Evidence from China

Existing studies suggest that formal institutions can effectively constrain corporate tax evasion and increase tax compliance, but little has been said about the role of informal institutions regarding tax compliance. This study empirically examines the long-term effect of Confucian cultural norms on corporate tax compliance using unique cultural and historical data from China. We find that the intergenerational transmission of the Confucian culture can significantly promote the tax compliance of modern firms, thereby effectively reducing tax evasion. Simultaneously, the compliance effect is more pronounced in informal firms, such as small-scale, non-listed, and local firms. In terms of mechanism analysis, the normative effect of the Confucian culture is a key mechanism for explaining variations in corporate tax compliance behaviors under different cultural norms. Overall, this study fills a gap in the research on how informal institutions regulate the behavior of firms to a certain extent, and at the same time supplements the existing literature on understanding the long-term effects of the Confucian culture.

Neoliberalism by stealth? Labour reforms and institutional discontinuity in worker representation in France

This article analyses the 2017 reforms to worker representation in France, focusing on the transition and implementation phases. The authors conducted 160 interviews with managers, union and employee representatives in seven large French companies across retail, finance, energy and pharmaceuticals. The article introduces the notion of institutional discontinuity to describe the path taken through the 2017 reforms, where a change to the formal institutional structures is expected to bring about a change in the functioning of representative institutions. The findings contribute to debates on the trajectories of employment relations in France. The authors argue that institutional discontinuity has opened a wider path towards more discretion-enhancing representative institutions, reflecting a clearer neoliberal path in employment relations. Yet, recognising that changing institutional form does not necessarily, nor automatically result in institutions functioning differently, the authors also analyse how actors play a role in shaping the process, whether they try to facilitate the change or to limit its effects.

"City upon a Hill" in the Face of Significant Challenges

The editor-in-chief proposes a context for examining the crisis processes in American society explored in the articles. The author suggests that this crisis should be viewed in the context of the American history cycles. Many of the current conflicts in the USA have a similar internal source, which is a sharp intra-elite conflict involving a significant part of society. This conflict is unusual in its depth, given that for many decades the «trademark» of the American political class has been its consensus character. One important element of this consensus can be seen as an unquestioned focus on global American leadership and a shared commitment among members of the community to the force imperatives in foreign policy – either the classic “hard” or “flexible” power. Among the sources of American foreign policy continuity are a number of factors. First, it is the stability of institutional mechanisms of decision-making, which, in turn, is based on a stable system of representation of dominant interests. Second, the stability of formal and informal institutions that ensure a high degree of elite cohesion; and the specificity of American political culture, which is based on a set of political and philosophical views of messianic nature. The consensual nature of the political elite was the system-forming basis of liberal democracy, so the breakdown of this consensus may entail – and partially has already entailed – a crisis of the US political system.

Can Mobile Financial Services Influence Financial Behaviour in India?

The study examines the relationship between mobile financial services and individual financial behaviour in India, wherein a sizeable population is yet to be financially included. The study utilises the nationally representative data from the Financial Inclusion Insights survey conducted during 2018, representing over 45,000 individuals aged 15 years or above for the empirical analysis. The study indicates that the use of mobile financial services improves financial behaviour in India. Specifically, the study finds that using mobile financial services increases the likelihood of investment, having insurance and borrowing from formal financial institutions. Further, to address endogeneity concerns, we also employ Lewbel’s method and propensity score method, and the findings remain qualitatively similar. The empirical results of the study highlight that fastening the pace of access to mobile financial services can improve financial outcomes in developing country settings. JEL Codes: G51, G52, O16

Informal Institution and Tourism Development: Insights From Confucian Culture

ABSTRACTAs the cornerstone of traditional Chinese culture, Confucian culture significantly shapes personal values and behaviours. This study investigates the impact of Confucian culture on tourism development, from a supply‐side perspective, using a sample of 269 Chinese cities between 2013 and 2019. The baseline results, validated through endogeneity tests and robustness checks, consistently indicate a positive correlation between Confucian culture and regional tourism growth. Utilising a chained multiple mediation model, the study delineates the primary mechanisms, showing that Confucianism bolsters tourism innovation by elevating labour quality and capital investment, thus propelling tourism development. Furthermore, the heterogeneity analysis demonstrates the synergistic effect of Confucian culture with formal institutions in advancing tourism. However, the positive effects of Confucian culture on tourism are attenuated by the effects of other cultures. These findings significantly contribute to the literature and offer valuable managerial implications.

Comparative Analysis of Jirga System as a Socio- Cultural Heritage in the Pre and Post Militancy in Swat

This paper evaluates the Jirga's significance as a socio-cultural legacy in Swat District and considers how militancy has affected its evolution. By comparing the pre- and post-militancy eras, the study employs a qualitative research methodology to investigate how conflict affects an established institution (jirga). In the pre – militancy, jirga served as revered and respected institution in district Swat. But the Taliban insurgency targeted many formal and informal institutions in the region, including jirga. They created a system of their own which diminished the effectiveness of jirga system. Most of the elders and leaders of a jirga system were killed and some were kidnapped in the region. This research study is conducted in District Swat through qualitative research methodology. The data was collected from 13 participants through in-depth interview. The collected data was then analyzed by thematic analysis. Moreover, the results show that militancy had a significant negative impact on the Jirga, a crucial institution in Pashtun society. Its initial cultural importance was lost as a result of changes made to its structure, role, and operating procedures by societal pressure and governmental compulsion rather than spontaneous change. In addition, the local population overwhelmingly resented the newly forced framework, and popular confidence in the Jirga declined. This brought attention to the conflict's wider societal repercussions by increasing insecurity and escalating domestic conflicts.x

“They Would Plant the Rose Garden Themselves”

This article theorizes how femme sociality and world-making provide a counterpoint to a politics that aims for neutrality or innocence, arguing that neutrality or innocence are hallmarks of different forms of patriarchy. Instead, the authors offer embracing complicity as a concept that structures practical ethics centered in abolitionism and nondisposability. Complicity is formulated as a mode of self-understanding that guides action, evading the social hierarchies demanded by a claim to innocence, uprooting (neo)liberal attitudes that look to evade friction by doling out punishment and exclusion. The proposal to embrace complicity is followed by a proposal for solidarity based on openness. Rather than being “right” or “solving problems,” a turn to the sensuous provides a form of world-making that can hold difference—without reducing life to the single organizational forms characteristic of liberalism. As a key part of this form of solidarity, the authors show how trans femmeness emphasizes possibilities for social and sensorial transformation. Practices of care and solidarity allow one to entangle with different forms of life. Instead of reforming the structures of oppression, femme practices encourage us to unlearn and uproot institutional forms that reproduce social and material oppressions, and to take agency in (re)constructing and nourishing one's own worlds—to collectively plant the rose garden of struggle for liberation.