Informal Mechanisms Research Articles

Why use or forgo formal and informal appropriation mechanisms? A qualitative study of sustainable innovations from small‐ and medium‐sized enterprises

AbstractThe role that appropriation mechanisms such as patents and secrecy play in sustainable innovation is currently being debated. In particular, we lack an understanding of the different motives behind using or forgoing specific appropriation mechanisms. Current knowledge is mainly derived from the general innovation literature, which emphasizes profiting from innovation. However, sustainable innovators also seek to positively impact the environment and society, which raises the question of whether existing appropriation literature also applies to sustainable innovation. We interviewed 42 business leaders from small‐to‐medium‐sized enterprises concerning a recently commercialized sustainable innovation. The results indicate that known motives from the general innovation literature apply to sustainable innovation but also reveal motives specific to sustainable innovation. We also discovered motives suitable to all innovations, such as non‐disclosure agreement motives extending beyond achieving secrecy. Theoretically, our findings suggest the profiting from innovation framework may also apply to sustainable innovation, even though the pursuit of profits is not the only motive of sustainable innovators. In practical terms, the results help sustainable innovators to craft an appropriation strategy, and policy‐related opportunities arise for improving patent and trademark filing experiences.

Analyzing actors’ interaction behavior in land transactions in informal settlement settings: A case study of Burayu city, Ethiopia

Informality plays an imperative role in offering housing for households in developing countries when the formal market cannot provide enough to keep up with residents' demands. The actors' interaction, with one another, plays an imperative role in land transactions in informal settlement areas. As informal actors operate outside the formal land transactions their activities and methods of operation are rarely understood. Therefore, based on social network theory, this paper aims to identify and examine informal actors, their functions, interactions, and power relationships in informal settlement areas. To this end, this study employed key informant interviews, focus group discussions, structured questionnaires, and a review of published literature, as well as official documents. In the study area, most residents acquired land through informal mechanisms. Major actors include farmers, local land administrators, speculators, land brokers, residents, government officials, and religious leaders. The study also uncovers that the role of each actor varies from information provision to price fixing. Their roles and interactions are governed by dynamic networks and occasionally overlap functions. Among the network actors, land brokers are considered the most influential and powerful because they possess a high degree of centrality, closeness, betweenness, and eigenvector. They hold a pivotal position in the network and act as a liaison between the network's actors. Therefore, the roles of land brokers, who often actively influence the land transaction process, should be considered in urban land governance and incorporated in policy formulation and implementation.

Coffee and cigarettes in industrial relations: A comparative network analysis of the role of informality

Literature commonly links the role of informality in collective bargaining to industrial relations systems based on voluntarism and decentralized negotiation settings. According to this view, informal processes won’t exist or at best play a marginal role in institutionally strong industrial relations systems, where formal rules define the roles, rights and duties of actors in the system. Yet, even in highly regulated contexts, formal and informal mechanisms very often co-exist and complement each other to help reach agreements or solve conflicts among actors. A relational approach and social network analysis applied to the study of the retail sector in Italy, Netherlands and Spain allows to understand the role of informality in countries with different industrial relations regimes. The analysis shows the importance of informal interactions and events in all countries, irrespectively of the industrial relations regime, and confirms the positive contribution of relational approaches to the study of collective bargaining linking with the literature on the embeddedness theory and structural holes.

Total allowable catches and fishing opportunity decisions of the Council of the EU – A voting power index approach

The setting of total allowable catches (TACs) have been a part of the European Union’s Common Fisheries Policy since its conception in 1983 and has been the main management tool of conservation of fisheries stocks in EU waters. TAC decisions of the Council are made behind closed doors, which has been the object of criticism. Previously voting power indices have been calculated and used to analyse Council decisions (e.g. EU budget) and institutional changes of the EU (e.g. Treaty of Lisbon), however not for EU TAC legislation and decisions. This paper looks at EU Council decision making for a subset of member states concerning TAC decisions for which the Council has exclusive competence in. Specifically, the paper looks at formal mechanisms of voting in the Council concerning EU TAC decision-making by calculating voting power indices for member states. Additionally, the paper looks at the changes in voting power due to the UK leaving the EU. Results indicate that the Council’s voting rules distributes voting power to member states with larger populations, but also distributes disproportionally voting power to smaller member states at the expense of medium size populated member states. This reflects previous results from the literature. The results do not undermine the importance of informal mechanisms such as consensus and coalition building among member states, but rather complement it.

Downward Accountability of NGOs in Bangladesh: Theoretical Issues and Empirical Investigation

This article analyses overall NGO accountability and accountability to beneficiaries in particular. It is based on the collection of qualitative data from four NGOs in Bangladesh. The participation of beneficiaries has been disaggregated into three phases for more analytical discussion: decision-making, implementation, and evaluation. The study results reveal that the participation of beneficiaries is much higher in the project/program implementation phase. The condition is alarming for the decision-making and evaluation phase, where participation is more rhetoric and sham rituals than the actual exercise. The study also identified some formal and informal mechanisms of participation.

Social Protection Supports and Management of Non-Communicable Diseases in Ghana: A Qualitative Cross-Sectional Perspective of Health Stakeholders

Introduction: Africa faces a double burden of communicable and non-communicable diseases (NCDs). Already, health systems in Africa are overwhelmed with a high burden of communicable diseases with perennial outbreaks of highly infectious diseases. The rise in NCDs comprises an already fragile health system challenging its ability to provide comprehensive care to people living with these diseases. Without responsive social support systems, NCDs will draw more people into catastrophic health financing, worsening health outcomes, and poverty. This study explores how vulnerable people negotiate major disease burdens with the social protection supports available in Ghana. Methods: The study applied a cross-sectional design with a qualitative approach involving healthcare professionals and non-healthcare professionals in 4 regions in Ghana with a total of 32 qualitative interviews analyzed thematically. Results: The main social protection support for the health sector in Ghana is the National Health Insurance Scheme. Other social protection supports such as free maternal healthcare, Livelihood Empowerment Against Poverty, and conventional informal social protection mechanisms do not directly target people afflicted with NCDs. Even though national health insurance covers about 90% of diseases, the quality of care is questionable. Again, the exclusion of diagnostic investigations makes national health insurance a setback to NCD disease management. Also, NCD patients still do out-of-pocket expenses though they have valid national health insurance. Informal social protection supports which used to be effective sometime back are dwindling due to the rising cost of living, gradual breakdown of the African system of reciprocity, and infiltration of Western lifestyles. Conclusion: NCD patients have very limited social protection for the management of their condition. Health insurance which is the only option for many has limited applications. A multidisciplinary body is established by the government to outline more effective ways of offering social protection support for health services, especially chronic conditions such as NCDs which affect a greater proportion of the population.

Let's Talk About it: The Utility of Formalized Support for Medical Residents.

Medical residents are significantly impacted by burnout and depression. Recent events have only further increased the pressure and demands on the healthcare sector, intensifying the burden facing residents and posing a threat to residents' well-being. As a result, significant efforts are being made to provide formalized support and well-being programs. Yet, emergent evidence indicates that residents do not sufficiently utilize this form of support. Considering the organizational investment and focus on formalized support programs, we conducted a mixed-method study to investigate residents' utilization of formalized well-being support, and potential reasons for non-use. Our study was conducted during a period of increased work burden and stress for medical residents, where formalized support was specifically offered and targeted to medical staff. Our findings confirm earlier results of low support utilization and point to the importance of informal support mechanisms, in particular peer support. We conclude by discussing the role of managers and educational programs in facilitating a positive cultural shift to promote and support residents in seeking support.

Stakeholder Engagement around Water Governance: 30 Years of Decision-Making in the Bogotá River Basin

Effective stakeholder engagement is vital for sustainable water management in the Bogotá River Basin, which faces serious environmental and socio-economic challenges, including water scarcity, pollution, and inequitable distribution. Engaging diverse stakeholders can promote shared decision-making, identify common goals, and enhance the implementation of sustainable water governance strategies. Taking this into account, this research evaluates multi-stakeholder engagement in the Bogotá River Basin in Colombia over the past 30 years to promote sustainable water management in the face of current global challenges. The research methodology includes a desk-based and systematic review, as well as policy analysis using descriptive and quantitative methods. With the use of MAXQDA software, we identified 74 national, regional, and local policies focused on stakeholder engagement for water management in Colombia, which were narrowed down to 22 documents for the Bogotá River Basin. The policy analysis is based on the Organization for Economic Co-operation and Development (OECD) indicator for Principle 10 to self-assess the level of legal framework implementation and stakeholder engagement. The self-assessment pointed out that despite the strong legal background and the enhancement of stakeholder engagement via formal and informal participatory mechanisms in the first stages of policy-making, there is a lack of engagement in the evaluation and follow-up phases, leading to box-ticking mechanisms. The findings suggest that effective stakeholder engagement needs to be comprehensive in policy-making processes, especially in the evaluation and follow-up stages. Moreover, the river basin’s management can improve by making a clear disclosure about the outcomes of participatory processes. This research concludes that promoting shared decision-making, identifying common goals, and enhancing the implementation of sustainable water management strategies can greatly benefit the Bogotá River Basin. These efforts can lead to more effective and efficient use of water resources and ultimately contribute to a healthier and more sustainable environment.

Defending Others Online: The Influence of Observing Formal and Informal Social Control on One's Willingness to Defend Cyberhate Victims.

This paper examines factors correlated with online self-help-an informal form of social control vis-à-vis intervention-upon witnessing a cyberhate attack. Using online surveys from 18- to 26-year-old respondents in the United States, we explore the roles of various types of online and offline formal and informal social control mechanisms on the enactment of self-help through the use of descriptive statistics and ordinal logistic regression. The results of the multivariate analyses indicate that online collective efficacy is positively related to self-help, as is having close ties to individuals and groups offline and online. Formal online social control, however, is not significantly related to engaging in self-help. Other findings demonstrate that personal encounters with cyberhate affect the likelihood that an individual will intervene when witnessing an attack, and that individuals with high levels of empathy are more likely to intervene to assist others. This work indicates that pro-social online behavior is contagious and can potentially foster online spaces in which harmful behaviors, such as propagating cyberhate, are not condoned.

Public transfers and crowding-in and -out of private transfers: Experimental evidence from Kenya

In rural areas of developing countries, private transfers are shared for altruistic reasons, to mitigate negative shocks (insurance motive) and in exchange for services. However, when public and private transfers provide similar benefits, an overlap exists, potentially crowding-out informal mechanisms. In this paper, we test whether an exogenous increase in household income, due to transfers by the Hunger Safety Net Program (HSNP) to pastoralist households in Northern Kenya, reinforces or dampens the redistributive dynamics associated with private transfers. We exploit the experimental implementation of HSNP to control for endogeneity with the randomly provided unconditional cash transfer. We show that an HSNP-induced rise in household income by 2,000 Kenyan Shillings is associated with a non-negligible decline in the total value of private transfers equivalent to 12% of the income increase. For transfers given, we show that the HSNP transfer leads to increased sharing equivalent to 11% of the income increase. Testing for non-linearities, we identify a significant reduction in the value of private transfers received at low levels of the income distribution. Concomitantly, we identify a positive relationship between income and transfers given that is most pronounced among poorer households. We further show that we possibly observe altruistic, insurance and exchange related sharing motives coexisting among Northern Kenyan pastoralists. The identified crowding-in and -out effects have implications for the design and efficacy of social programs beyond Kenya, demonstrating that traditional transfer dynamics are altered due to public programs.

Governing buyer–supplier relationships to foster relational rents in organic short food supply chains

PurposeThis paper aims to analyze the influence of governance mechanisms in the generation of relational rents for supplier in short food supply chains (SFSCs).Design/methodology/approachThis study used data from a survey of 181 organic producers in SFSCs, using partial least squares structural equation modeling (PLS-SEM) with the aid of the SmartPLS® 3 software for the analysis.FindingsThe results show the relationship between formal and informal governance mechanisms and relational rents. The predominance of informal mechanisms enabled a higher explanatory power than that provided by formal governance mechanisms. Further, the authors found that the complementary use of governance mechanisms has a stronger impact on generating relational rents. However, contextual factors such as relationship time, power asymmetry and uncertainty in demand have not shown any influence on governance mechanisms for generating relational rents.Originality/valueThe result sheds new light on the relevance of governance mechanisms to foster relational rents to suppliers in SFSCs. It also shows that contextual factors that affect relationships in traditional supply chains do not play a relevant role in SFSCs due to their specific characteristics.

Struggles of Governance and Autonomy in the Field of KulturskoleStruggles of Governance and Autonomy in the Field of Kulturskole

The Norwegian extracurricular schools of music and performing arts, kulturskolen, largely govern themselves. In contrast to other types of law obliged schools, kulturskolen receives no clear signals from either state levels, or municipality/county municipality levels, but rather are left to informal steering mechanisms on individual or collective levels. This leads to a wide diversity of what disciplines that are offered, what collaborations that are conducted, what aims, intentions, profiles, and competences that are managed, and thus to very different conditions for what the pupils might learn and experience. This article is a theoretical discussion of this finding, investigating diverse forms of conduct that are identified on (i) state, (ii) community, and (iii) individual school level. The article particularly looks at the identified steering mechanisms, with Michel Foucault’s thoughts of governmentality and power/knowledge as its basis. This discussion on how the kulturskole regulates itself is a contribution to the body of research about kulturskole, cultural policy, and about extracurricular arts education in the kulturskole that aims to be “for all.”

Managing appropriation concerns and coordination costs in complex vendor relationships: Integration and isolation as governance strategies

Many studies have shown that the inter-organizational governance mechanisms required to manage appropriation concerns come into conflict with the mechanisms needed to manage coordination costs. Research has, however, largely left unanswered the question of how client organizations govern complex vendor relationships that involve multiple categories, transactions, and activities where appropriation concerns and coordination costs must be managed simultaneously. We propose that this may be achieved by utilizing two strategies; while integrating some activities, transactions and categories, others can be isolated. Drawing on 23 interviews as well as procedural documents associated with vendor management, this study examines how a leading automotive manufacturer governs relationships with three vendors. The analysis reveals how corporate and operational-level staff combine formal and informal governance mechanisms as they pursue integration and isolation strategies, enabling the client organization to maintain and develop long-term complex relationships. Our findings lead us to question a tendency in the literature to regard isolation as negative and integration as an ideal strategy for managing long-term relationships. Only when utilized in tandem will isolation and integration strategies enable organizations to align the conflicting governance mechanisms required to manage appropriation concerns and coordination costs.

Integrating knowledge in infrastructure projects: the interplay between formal and informal knowledge governance mechanisms

This study focuses upon knowledge governance mechanisms of integrating specialised knowledge on underground utilities in large infrastructure projects. The integration of knowledge is essential for the realisation of such projects. The study explores the formal and informal knowledge governance mechanisms in three large infrastructure projects and compares these mechanisms to reveal their effects on knowledge integration. The findings show that combining reward systems, project culture and trust are targeting the motivation of underground experts to share their knowledge and allocation of authority and project network are mechanisms aimed at the coordination between managers and underground experts to integrate knowledge. We contribute to studies on knowledge governance by enabling further empirical insight in the relationships between formal and informal mechanisms.

Equity incentive, political connection and bank loan in private enterprises

This paper analyzes the effect of political affiliation on the relationship between equity incentives and bank borrowing. Based on the data of listed companies in China that issued equity incentive announcements, we present evidence that: 1) Management equity incentives significantly increase firm's bank loans; 2) Compared to CEO stock ownership, the incentive model of implementing stock options or restricted stock has a more significant impact on corporate bank loans especially on obtaining short-term loans; and 4) Political connections is an informal mechanism affecting bank credit decisions and weakening the impact of equity incentives on bank loans.

How Did Reskilling During the COVID-19 Pandemic Relate to Entrepreneurship and Optimism? Barriers, Opportunities, and Implications for Equity.

With shorter durations and fewer barriers to entry, reskilling programs may serve as vehicles for social mobility and equity, as well as tools for creating a more adaptive workforce and inclusive economy. Nevertheless, much of the limited large-scale research on these types of programs was conducted prior to the COVID-19 pandemic. Thus, given the social and economic disruptions spurred by the pandemic, our ability to understand the impact of these types of programs in recent labor market conditions is limited. We fill this gap by leveraging three waves of a longitudinal household financial survey collected across all 50 US states during the pandemic. Through descriptive and inferential methods, we explore the sociodemographic characteristics related to reskilling and associated motivations, facilitators, and barriers, as well as the relationships between reskilling and measures of social mobility. We find that reskilling is positively related to entrepreneurship and, for Black respondents, to optimism. Moreover, we find that reskilling is not merely a tool for upward social mobility, but also economic stability. However, our results demonstrate that reskilling opportunities are stratified across race/ethnicity, gender, and socioeconomic status through both formal and informal mechanisms. We close with a discussion of implications for policy and practice.

Introduction to special section: Workplace sexual harassment

SummaryMotivationPaid work is key for women's empowerment, but many women work in precarious employment where they experience workplace sexual harassment. Articles in this special section explore how social norms and job informality influence women's perceptions about—and their voice and agency to counter—workplace sexual harassment.PurposeThis introductory article highlights the academic and policy contribution of the special section by establishing how the articles collectively explore the relationship between social norms, job informality, and women's agency with respect to workplace sexual harassment, and the kinds of policies that may strengthen women's agency.Methods and approachResearch in two countries explored how gender norms and informality in work arrangements influence young women's voice and agency in response to sexual harassment at work. This article introduces four articles based on the research findings and presents the themes that are explored in case studies with domestic workers and workers in agro‐processing factories in Bangladesh and Uganda.FindingsThe findings show that gender norms regarding sexuality and notions of family honour and shame constrain young women's ability to voice incidents of sexual harassment and their agency in seeking support from family and other actors; normalize male aggression; and sustain the perpetrators' impunity. These norms, alongside class and power hierarchies, affect the responses of the actors and institutions both within and outside their workplace. Given the precarious nature of their work, most workers avoid lodging formal complaints and rely on informal mechanisms for self‐protection.Policy implicationsThe policy implications of the research include the importance of developing common language that will allow women to speak openly about their experiences; increasing access to and confidence in formal complaints mechanisms; developing young women's political capacities to challenge harassment; and address social and gender norms that constrain women and normalize harassment.

Dealing with the Facts of Life: The Management of Intra-Party Factionalism in the Iberian Radical Left Parties

AbstractFactionalism is an important element in parties' internal life, affecting their policies, strategies, electoral performance and even survival. Yet little is known about how parties manage factionalism. This study examines how radical left parties (RLPs) manage factionalism, drawing on a comparative case study of four RLPs – the Spanish Podemos and United Left (IU), and the Portuguese Left Bloc (BE) and Communist Party (PCP) – from 2010 to 2019. Drawing on original data collection, we find that parties adopt both formal and informal mechanisms to address factionalism. However, their approaches differ significantly. We identify two main approaches towards factionalism: apermissiveapproach, which allows internal pluralism, in the BE and IU; and aprohibitionistapproach, which actively fights factionalism, in Podemos and the PCP, withcompetitiveprohibitionism in the former andpre-emptiveprohibitionism in the latter. These approaches strongly correlate with parties' origins and political orientation, but neither fully prevents intra-party conflict or splintering.

Preventing and protesting workplace sexual harassment: Women agro‐processing workers in Bangladesh

SummaryMotivationSexual harassment of women in the workplace is considered to be one of the reasons holding back women from entering work and a major reason for women dropping out of work in Bangladesh. However, paid work is an important pathway to empowerment. To enable and sustain women's entry into the formal sectors of the economy, it is important to understand their voice and agency in preventing workplace sexual harassment and from the obstacles they face in doing so.PurposeThe article explores how language and social and gender norms constrain young women's voice and agency in response to sexual harassment. Our research asked how language, gender norms, and informality in work arrangements influence young women's voice and agency in response to sexual harassment at work.Methods and approachBased on case studies with factory workers in agro‐processing firms in the outskirts of the capital, Dhaka, 21 in‐depth interviews were carried out, supplemented by participatory techniques of gender safety audits and body mapping.FindingsI show the informal nature of formal workspaces and the failure of formal institutions which create precarity for the women working there. Young women's experiences, perceptions, and articulation of sexual harassment and attempts at prevention or redress are determined by gender norms and how these norms influence the factory workspace and interactions with others in that space. I argue that sexual harassment is normalized, formal complaints mechanisms do not work, and so informal means aligned with social norms may be the only option available.Policy implicationsThe policy implications of the research include the need to recognize the informal mechanisms being used and the importance of developing a common language that will allow the “victims” to speak openly about their experiences and make complaints, increasing access to and confidence in formal complaints mechanisms and developing young women's civic and political capacities to protest harassment and seek redress.

The challenges in protecting public health interests in multisectoral governance in the context of small island developing states: the case of tobacco control in Fiji and Vanuatu

BackgroundThe commercial determinants of health (CDoH) drive the rise of NCDs globally, and their regulation requires multisectoral governance. Despite existing recommendations to strengthen institutional structures, protecting public health interests can be challenging amidst industry interference and conflicting policy priorities, particularly in low and middle-income countries (LMICs) where the need for rapid economic development is pronounced. Small island developing states (SIDS) face even more challenges in regulating CDoH because their unique socioeconomic, political, and geographic vulnerabilities may weaken institutional conditions that could aid health sector actors in protecting health interests. This study aims to explore the institutional conditions that shape health sector actors’ capability to protect public health interests in tobacco governance in Fiji and Vanuatu.MethodsWe employed a qualitative, exploratory case study design. We applied the administrative process theory to inform data collection and analysis. Seventy interviews were completed in Fiji and Vanuatu from 2018 to 2019.ResultsThe findings show that the protection of health interests in tobacco governance were not supported by the institutional conditions in Fiji and Vanuatu. While the policy processes formally ensured a level playing field between actors, policies were often developed through informal mechanisms, and the safeguards to protect public interests from vested private interests were not implemented adequately. SIDS vulnerabilities and weak regulation of political parties contributed to the politicisation of government in both states, resulting in high-level government officials’ questionable commitment to protect public health interests. The system of checks and balances usually embedded into democratic governments appeared to be muted, and policymakers had limited bureaucratic autonomy to elevate health interests in multisectoral policymaking amidst high-level government officials’ frequent rotation. Finally, capacity constraints aggravated by SIDS vulnerabilities negatively impacted health sector actors' capability to analyse policy alternatives.ConclusionsHealth sector actors in Fiji and Vanuatu were not supported by institutional conditions that could help them protect public health interests in multisectoral governance to regulate CDoH originating from the tobacco industry. Institutional conditions in these states were shaped by SIDS vulnerabilities but could be improved by targeted capacity building, governance and political system strengthening.