Nature Of Institutional Change Research Articles

Трансформації інституціонального середовища розвитку малого та середнього підприємництва

Theoretical and historical perspectives study the logic and dynamics of institutional changes in the deregulation of small and medium-sized enterprises (SME). The paper specifically considers the conditionally and nature of institutional changes in socio-economic systems in the context of leading trends and challenges of our time. These processes are designed for SME development policy. The methods of scientific cognition, analysis and synthesis, logical generalization, deductive technique, complex evaluation, graphics, and others are used. Based on the definition of relationships between the basic categories of institutionalism under the influence of economic changes and the clarification of the functional purpose of the institutional environment to create a favourable “microclimate”, appropriate conditions for activity and development, the process of the institutional environment of SME development formation during the 30 years in Ukraine is generalized. The process mentioned above is divided into three periods: the 1st – since 1991, the intensification of institutional changes in SME development policy when the State Committee of Ukraine for Regulatory Policy and Entrepreneurship Development and the Ukrainian Entrepreneurship Support Fund were established; the 2nd – since 1998, when the SME support system was formed and developed directly during 2000–2011; and the 3rd period – since 2014, when there was stagnation and decline of the constructed SMEs development support system, but there were some isolated, unfortunately, chaotic institutional initiatives during 2018–2020. The scientific novelty lies in the reflection of economic changes in the institutional environment of SME development in Ukraine under the influence of the most fundamental structural socio-economic transformations and global factors: globalization, internationalization (1991–1997), innovative development, socialization, intellectualization of the economy (1998–2013), sustainable development, digitalization (2014–2021). The presented scheme of influence allowed generalizing the tendencies under the influence of which the institutional environment of SME development formed and gave the chance of predicting at the expense of what components and from what sources institutional changes can be expected. Practical significance: the recommendations can be used in forming and implementing of the national and regional targeted programs for SME support and development in Ukraine.

Political dynamics of local government reform in a development context: The case of Turkey

This article examines the political dynamics of local government reform in Turkey during 2000s and 2010s, showing how the reform was implemented in a way that reproduced central state power. Contributing to debates on the relationship between state rescaling and decentralisation, it argues that the dynamics of electoral politics are key to determining the nature of institutional changes affecting central-local relations. In the Turkish context, decentralisation did not align with the interests of the ruling Justice and Development Party, given that opposition parties could potentially win local elections and control local municipal councils. By questioning the significance of the recent trend of decentralisation and the devolution of authority to lower levels of government in Turkey, this article contributes to the literature on the limits of decentralisation, especially in non-western contexts.

The nature of institutional changes in foreign trade as a result of the digitalization during the international economic integration

Subject. The article focuses on the creation of a favorable institutional environment for the Russian companies to enter foreign markets, being prepared to digitalization processes. Objectives. I determine the nature of institutional changes that take place during the active and widespread integration of ICT. The article also traces trends in foreign trade relations between countries during the digitalization and the impact of innovation during the digital transformation of international relations. The article evaluates what part network technologies play in the economic, social and political life during the globalization. Methods. The study relies upon elements of the innovative methodology for the post-industrial analysis through the cross-disciplinary synthesis, which implies overcoming the single aspect focus, dichotomy and dogmatism of many concepts of the orthodox new institutionalism. Results. Based on digital technologies, institutional mechanisms of trade agreement were found to be a complex set of related constituents. Institutions for the regulation and self-regulation of the digital economy will comprise two big subsystems in the mid-term, i.e. smart institutions (rules and models of conduct resulting from self-performing smart contracts) and hybrid institutions, which combine aspects of traditional, written law and algorithmic one, which is based on computer codes and software. The digital institutional environment will unavoidably engender smart intermediaries, which have already featured legal attorneys for smart contracts, technical experts on digital technologies, auditors and managers of digital business processes. Conclusions and Relevance. New technologies reshape the institutional environment of the international cooperation on foreign trade, which contributes to the development of innovation so that countries could gain some competitive advantages. Drawing upon the cross-country cooperation within the same institutional space, national and/or regional innovative ecosystems become very important.

Неконвенційні форми протесту в Україні: механізм інституційних змін чи маніпулятивна технологія?

The article deals with the peculiarities of non-conventional protest in democratization of the Ukrainian political system. The controversial role of political participation has been described as a mechanism of influencing the state authorities, driving force of reforms and, at the same time, a technology of manipulating masses, and a consequence of the struggle for power among the influential political actors. The ability of non-conventional protest to promote the transformation of a hybrid institutional system has also been analyzed. The tendency of political elites to use mobilization of mass protests in achieving their narrow corporate goals as well as dependence of the success of protests on the will of the political elite representatives have been proved. The institutional approval of the protest practice in the struggle for power has been substantiated. It has been pointed out that there is a tendency for increasing unorganized demonstrations and strengthening the non-conventional component of protests in Ukraine due to distrust in political institutions. The reasons and consequences of the large-scale non-conventional protests in the history of Ukraine have been considered in the context of their impact on the democratization of the political system. The nature of institutional changes arising from people’s protests has been described as superficial and indeterminate, for the most part contributing to a change of government, and a temporary relief in social tensions. Instead, the institutional system has undergone little change, asserting non-conventional protest as the only possible option of effective political participation. The main reasons for the periodic recurrence of non-conventional mass protests are their institutionally-caused nature and their perception as an effective and standardized technique of influencing the government.

Improving the organization of production processes in the conditions of innovative development of the quality management system

The article highlights the results of a study of the nature of innovation changes in methods and forms of production management in the light of the main provisions of quality management system in accordance with the requirements of ISO 9001:2015. Presents the author's interpretation of key provisions of a modern system of quality management are highlighted in the General directions of development of the company's management examined the nature of institutional changes in the quality management system and the system of organization of production, as well as methodological approaches, methods and tools improving the organization of production processes. Analysis of changes based on the key provisions of the integrated model of management system qualities, allowed to reveal the contents of the provisions in the context of an enterprise management system and system of organization of production, to offer the author's interpretation of the concept of organization of production based on the principles and requirements of the quality management system, and to substantiate features of the quality management system as a special form of organization of production processes. According to the analysis of benefits at the enterprise the quality management system developed in accordance with the requirements of ISO 9001:2015, describes the objectives and tasks of the system of production organisation in the light of the recommendations of the integrated model of this system, learn how to change the patterns of development methods and forms of organization of production processes with regard to the content of the process approach recommended by the system management qualities as well as the interrelation of the concept of "knowledge management" and improving personnel management processes of enterprises with the aim of ensuring their competence in the field of maintenance and improvements in the quality of manufacturing processes, studied the problems of enterprises related to the implementation of key provisions of the integrated quality management system and proposed management recommendations to address.

The Effect of Institutional Evolution on Indian Firms' Internationalization: Disentangling Inward- and Outward-Oriented Effects

We draw upon the institutional theoretical perspective to study Indian firms' internationalization during periods of institutional change. We focus on firms establishing a subsidiary abroad. We delve into the nature of institutional change and propose two categories of institutional change that have impacts of different magnitudes on international investments. We also investigate the case of firms affiliated with domestic business groups. We develop four hypotheses and test them using data on Indian firms. Our findings provide interesting insights into different institutional factors that promote firms' internationalization in a context characterized by dynamic change. The results of our study have significant theoretical and managerial implications.

Institutional development and firm profitability in transition economies

Although transition economies experience significant institutional transformations that vary in their pace and magnitude, our understanding of how such changes influence firm performance is rather limited. We examine how variations in institutional reforms and international openness in 16 transition economies in Central and Eastern Europe (CEE) influence firm profitability. We enhance the understanding of this subject by showing that such institutional changes have different effects on the competitive advantages and in turn profitability of domestic firms and foreign subsidiaries. Our analysis of over 230,000 observations reveals that institutional reforms benefit domestic firms. Conversely, a completely different pattern emerges for foreign subsidiaries, indicating that institutional reforms have negative consequences for their profitability. Hence, in contrast to the established assumption that developed institutional environments are advantageous for foreign subsidiaries, the nature of institutional changes makes domestic firms the main beneficiaries.

Capitalist diversity and de-growth trajectories to steady-state economies

Growth-critical scholarship has done much to both expose the environmentally unsustainable nature of the capitalist growth-economies of the overdeveloped part of the world and to develop an alternative vision of a de-growth transition leading to a steady-state economy. However, this scholarship fails to adequately take into consideration that if planned de-growth actually materialised it would do so in societies that differ considerably from one another and that this would have implications both for the transition processes and the nature of their outcomes. In other words, not enough importance is ascribed to capitalist diversity and the nature of institutional change in the growth-critical literature. Against this background, the purpose of the present article is to make the “concrete utopia” of de-growth scholars and steady-state economists more specific by utilising insights from scholarship on capitalist diversity and institutional change. On the basis of a typology of different models of capitalism, the article suggests that if de-growth transitions took place they would take different forms and lead to a variety of types of steady-state economies (SSEs). To illustrate this point, three ideal-typical SSEs are delineated.

Rethinking State-Society Relations in Vietnam: The Case of Business Associations in Ho Chi Minh City

:The growing private sector in the post-reform Vietnamese economy and its new forms of mobilisation have led to newly emergent social forces that have shaped internal state agendas and political deliberations. With a view to exploring the nature of institutional change in Vietnam, I argue that business associations have played a crucial intermediary role between the state and the private sector over past decades. These associations and the spaces of governance that they constitute are neither characteristic of autonomous actors as suggested by liberal theory nor a form of state corporatism. This paper adopts the “state-in-society” approach, which contends that the state and society should be considered through new governance spaces within the state. These spaces create institutional mechanisms for interaction between the government and business, and provide a framework for deliberative engagement between state and non-state actors. This framework will be tested through an examination of associations of small and medium enterprises in Ho Chi Minh City and their connections to the city authorities. I argue that business associations will be accommodated by the state and will coalesce with existing bureaucratic interests. This proposition contributes to the new research agenda that applies the state-in-society approach to post-socialist institutions.

The Capacity Continuum: Tracking the Capacity of State Institutions in Driving Human Development

This paper examines the relationship between a state’s institutional capacity and human development. After analyzing human development trends since 1980 and the state’s role in helping to explain variance, the paper carries out a series of empirical exercises using a proxy variable for institutional state capacity — the Government Effectiveness Index (GEI) from the World Governance Indicators — and human development as measured by UNDP’s Human Development Index (HDI). The panel data, which captures more than a decade of performance, suggests a strong, positive relationship between a state’s institutional capacity and its progress on human development. Plotting the data further reveals a ‘capacity continuum’ in which countries seem to follow a common trajectory over time. The data trends suggest that countries with low institutional capacity and low levels of human development struggle to escape the capacity-deficit trap. Conversely, states that boast high levels of human development and low levels of institutional capacity remain highly vulnerable to shocks and are oftentimes those hardest hit. The data trends also suggest that countries characterized by strong state institutions and high levels of human development are those that are most resilient and best able to withstand and manage shocks even during short-term downturns. Given the context-specificity and idiosyncratic nature of institutional change, the paper provides illustrations of the different typologies of countries along the capacity continuum. The investigation concludes by offering the capacity continuum as an analytical tool to support policymakers in their prioritization of policies and investments.

Rethinking Institutions and Institutional Change in European Industrial Relations

This article traces the process of institutional change in industrial relations in Britain, France and Sweden over the last quarter-century in order to identify the mechanisms and forms of institutional change. These three cases demonstrate a high degree of institutional plasticity, and a greater convergence in industrial relations than comparisons of national institutions have tended to suggest. These findings in turn suggest the need to rethink both the role of institutions and the nature of institutional change in comparative political economy.

Two Steps Forward or Two Steps Back? Institutional Change in Post-Soviet Russia

Much of the research on the socioeconomic transformations that shook Russia in the 1990s has focused on two interrelated themes: the path-dependent nature of insti tutional change and the nature of the post socialist stratification order. Each of the books reviewed here advances the discussion of these two topics, albeit from different angles. In my comments I suggest several ways to improve the level of debate about institutional change and distributional out comes in contemporary Russia, including the need for more detailed attention to eco nomic transactions among firms and house holds in order to balance path-dependencies with an appreciation for the manner in which markets are shaping incentives and thereby generating social change. How Russia Really Works is based on inter views the author conducted between 1997 and 2003 with 50 informants, including busi nesspeople, journalists, law enforcement offi cials, accountants, and legal experts. In the book, Ledeneva shows how defects in the formal structure of Russian society have forced individuals and organizations to rely on informal practices, many of which date back to the Soviet period, to achieve their goals. The author devotes separate chapters to six informal practices in particular: chernyi piar (the release of negative information about candidates for political office), kompro mat (the gathering of compromising infor mation on politicians and businessmen for purposes of blackmail), krugovaia poruka (the mutual cover-up of illicit activities within elite circles), tenevoi barter (reliance barter chains, surrogate financial instruments, and other non-market mechanisms of exchange), dvoinaia bukhgalteriia (double accounting and other financial schemes which allow entre preneurs to avoid taxes and export capital abroad), and, last but not least, tolkachi (the Owning Russia: The Struggle over Factories, Farms, and Power, by Andrew Barnes. Ithaca, NY: Cornell University Press, 2006. 273pp. $35.00 cloth. ISBN: 9780801444340.

Institutional Change and Embeddedness: Caste and Gender in Financial Cooperatives in Rural India

ABSTRACT This article examines the interaction between institutional change and caste and gender embeddedness. It develops a framework for understanding how this interaction takes place. The article presents data on the results of an effort by a non-profit development organization, the Cooperative Development Foundation (CDF), to promote women's cooperatives, grounded in the ideas of mutual self-help and equitable access to services, in rural Andhra Pradesh in India. Using a simple theoretical framework that highlights the multi-level nature of institutional change, and the potential for interactions with embeddedness at one level to affect interactions at other levels, the article presents data showing how particular institutional rules of the cooperatives interacted with caste and gender to shape the overall governance and service delivery practices of these new organizations. In particular, after failed attempts to integrate existing, male-dominated cooperatives with women, the CDF created gender-segregated cooperatives. Data from the women's cooperatives show the creation of mixed-caste organizations, with boards of directors that were fairly representative of their membership, but with presidents that were more likely to be from the higher-castes. Access to financial services shows little caste bias, though lending is through caste-based peer groups. The data suggest that the interaction of embeddedness and institutional change is a process contingent on: a) the strategy taken by the development organization towards embeddedness; b) the nature of the institutional change itself relative to the existing social structure; and c) the effects the interactions between institutional change and embeddedness at different levels have on each other.

The Nature of Institutional Change in Transition

The Nature of Institutional Change in Transition

The Nature of Institutional Change in Transition

Contemporary empirical evidence of transition in Central and East European countries proves the importance of institutional change, as was claimed by advocates of this field of transition. The article assesses institutional change in the first phases of transition from the perspective of competing strategies: rapid changes versus gradualism. After pointing to some inconsistencies in this debate, the article discusses the possibility and prospects for development of a market for institutions in European transition countries. The main criterion which is used is the requirement for the rule of law as one of the foundations of a market economy. It concludes that undeveloped endogenous factors of institutional change still do not enable development of markets for institutions. Reluctance of national governments to act according to a long-run perspective is at present to a certain extent compensated by the presence of external factors of institutional change.

‘What Counts is What Works’? Constructing Evaluations Of Market Mechanisms

This paper draws on a study of the introduction of market testing in the UK civil service to explore ways in which managers involved in the implementation of the new policy constructed evaluations of its impact. It is structured around three arguments. The first concerns the problems of evaluating ‘what works’ in the multi‐stakeholder, multi‐goal context of public management. The research highlights a range of overlapping and sometimes conflicting evaluation criteria across different organizational and occupational groupings. The second argument explores the difficulties of evaluation in the context of shifting policy objectives and the dynamic nature of institutional change. The research shows how the practitioners involved shaped and reshaped their construction of events over time as unanticipated benefits and disbenefits became evident. It also suggests ways in which they responded to the changing policy context, constructing new rules and norms of action over time. The third argument concerns the different levels of analysis underpinning managers’ constructions of ‘efficiency’ and ‘effectiveness’, and how these constructions were deployed as strategies of legitimation in shaping the process of institutional change.

Steering futures: practices and possibilities of institutional redesign in Australian education and training

This paper reports findings from an enthographic study of educational restructuring in an Institute of Technical and Further Education (TAFE) in Victoria Australia. Educational restructuring is analysed as a process of institutional redesign and theorized in relation to recent debates in institutional theory concerning the nature of institutional change. The review distinguishes between hyperrational approaches to institutional redesign based upon assumptions about rational actors and their motivations and behaviours, and social and cultural perspectives on institutional redesign that sees purposeful institutional change achieved through processes of ‘institutional gardening’. The paper documents the way Australian governments have adopted hyperrational strategies aimed at changing education and training by reworking institutional rules that frame the day-to-day practices within particular organizations. Reworking these practices of organizing serves to steer change by restructuring and rearticulating relationships, practices and centres of power within organizations. Data drawn from interviews with the TAFE Institute Director, and various managers and teachers are used to track the effects of government steering in the TAFE Institute. This analysis shows that government steering drives management steering in the TAFE Institute, creating new imperatives and work organization. These organizational changes are influenced by local conditions and management priorities. They also call forth counter-steering by teachers and managers as they attempt to deal with change. The paper suggests that hyperrational government steering drives towards probable educational futures but is also interrupted by counter-steering oriented to other values and priorities. While there are probable futures, there are also preferred futures to be willed for and worked for.

The Partisan Basis of Procedural Choice: Allocating Parliamentary Rights in the House, 1789–1990

Conventional accounts of the institutional development of Congress suggest that expansion of the size and workload of the House led members to distribute parliamentary rights narrowly: Majority party leaders accrued strong procedural powers while minority parties lost many of their parliamentary rights. I offer an alternative, partisan basis of procedural choice. Using an original data set of changes in House rules, I present a statistical model to assess the influence of partisan and nonpartisan factors on changes in minority procedural rights in the House between 1789 and 1990. I find that short-term partisan goals—constrained by inherited rules—shape both the creation and suppression of rights for partisan and political minorities. Collective institutional concerns and longer-term calculations about future parliamentary needs have little impact on changes in minority rights. The findings have important theoretical implications for explaining both the development of Congress and the nature of institutional change more generally.

Channeling Ideological Change: The Political Economy of Dependence on Government

This paper is concerned with two aspects of the process of ideological change: endogenously manipulable political transaction costs and dependence on government. Building on economic models of ideological evolution that suggest the self-validating nature of institutional change, this paper analyzes a complementary process that facilitates institutional changes initially incompatible with people's beliefs. Self-interested reshaping of political transaction costs and creation of dependence on government are seen as mechanisms that support institution-legitimating ideological transformation. The evolution of Social Security's compulsory old-age insurance in the United States is used to illustrate relevant processes of institutional and ideological change. Copyright 1993 by WWZ and Helbing & Lichtenhahn Verlag AG