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This paper develops a rigorous concept of institutions to investigate the interrelationships between institutional and economic change from the perspective of economic geography. We view institutions neither as behavioural regular...
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This paper develops a rigorous concept of institutions to investigate the interrelationships between institutional and economic change from the perspective of economic geography. We view institutions neither as behavioural regularities nor as organizations or rules, but conceive institutions as stabilizations of mutual expectations and correlated interaction. The paper discusses how economic interaction in space is shaped by existing institutions, how this leads to economic decisions and new rounds of action, and how their intended and unintended consequences impact or enact new/existing institutions. The paper explores three modes of institutional change – hysteresis, emergent change, and institutional entrepreneurship.
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Theory and research on institutional pluralism and complexity provide an opportunity to re-examine a key question of strategy: the sources of organizational heterogeneity in the creation and capture of value. Concretely, we focus ...
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Theory and research on institutional pluralism and complexity provide an opportunity to re-examine a key question of strategy: the sources of organizational heterogeneity in the creation and capture of value. Concretely, we focus on the implications for value creation and capture in terms of organizations' business models and governance strategies, respectively. We posit that strategic organizational choices are shaped by available institutional logics and theorize that greater institutional pluralism leads to increased heterogeneityrather than isomorphismin business models and governance strategies. As the mechanism for heterogeneity, we explain how pluralism leads to differentiated organizational commitments to distinct combinations and prioritizations of institutional logics. The article further examines how institutional complexity, wherein latent contradictions between logics become salient, provides opportunities for strategic change. We theorize that framing exposed contradictions as incompatible or paradoxical implies differentiated outcomes with respect to transformations in organizations' business models and governance strategies.
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Suggesting socio-cultural values are selectors of institutions and institutional practices, and institutions in turn are selectors of (economic) behaviors, we investigate what explains the persistence of institutions that were ali...
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Suggesting socio-cultural values are selectors of institutions and institutional practices, and institutions in turn are selectors of (economic) behaviors, we investigate what explains the persistence of institutions that were aligned with past socio-cultural values when the values subscribed to in society have fundamentally changed. What, in other words, explains the persistence of obsolete institutions? We do so by investigating the labor market situation for academics in post-communist societies in Europe.
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A critical stage in change toward institutional pluralism occurs when incumbent organizations must begin to integrate diverse logics in their operations. The required institutional work inside organizations at that stage-instituti...
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A critical stage in change toward institutional pluralism occurs when incumbent organizations must begin to integrate diverse logics in their operations. The required institutional work inside organizations at that stage-institutional intrapreneurship-involves distinctive challenges. Incumbent logics are entrenched in organizational routines, status orders, policies, and structures that hamper change and trigger resistance. We used qualitative data from two integrative medicine (IM) programs inside large healthcare organizations to understand how institutional intrapreneurs work to integrate the IM logic in these highly institutionalized organizations. We found that intrapreneurs use opportunistic tactics to create and strengthen organizational free spaces aligned with the new logic, and then leverage the capacity that is developed to extend elements of the new logic into the broader organization. This study suggests that a better understanding of the organizational context helps explain the fate of early-stage efforts toward institutional change.
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This study introduces a comprehensive model of institutional grafting wherein cultural, market, and political forces shape new legal institutions. The model is used to suggest that a country’s growth rates are a function of incon...
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This study introduces a comprehensive model of institutional grafting wherein cultural, market, and political forces shape new legal institutions. The model is used to suggest that a country’s growth rates are a function of incongruence between legal institutions and the three forces. We demonstrate that incongruence is large in path-break but tends to be significantly smaller in path-drift. We argue that legal institutions are thereby instrumental to economic growth when a country drifts along the established institutional path and only modestly influence growth rates during institutional path change. In the latter case, the political dimension determines the success of both growth trajectories and institutional reforms. These propositions are tested empirically based on a sample of 106 countries derived from the POLITY IV Project’s website. JEL Classifications : O17, O43, O57, P26, P37.
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Ecuador constitutes a fascinating case study to explore land policies and reforms. Since colonial times, it has experienced prolonged and ongoing struggles to transform land institutions. This paper investigates how, across levels...
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Ecuador constitutes a fascinating case study to explore land policies and reforms. Since colonial times, it has experienced prolonged and ongoing struggles to transform land institutions. This paper investigates how, across levels, historic institutional factors affected land-use decision making in the Mindo parish and western foothills of Pichincha, Ecuador, as perceived by its landowners. Following techniques and procedures for developing grounded theory, we identify four main periods of institutional change related to land by relying on the narratives of landowners. These periods are: a) colonial institutions - hacienda feudal modes of production; b) the way toward an Agrarian Reform and Colonization Law; c) rural development after the Agrarian Reform; and d) forest conservation incentives versus 'neo-extractivism' practices. We reconstruct and explore these in light of the existing literature. Along with individual and collective perceptions, we are also concerned with the drivers underlying these institutional changes and the structure of these changes. Lastly, we discuss and provide conclusions on the key issues that help us explain institutional change in the study area, including theoretical explanations about cognitive variation (cultural-cognitive), power relationships, individual ability to change and perceive, as well as the system's capacity to reorganize, persist, and reproduce.
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Institutions crucial for the analysis of how agents deal with uncertainty have been gaining increasing relevance on the economic research agenda. In this paper, we analyze the institutional literature aiming to explain why this pe...
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Institutions crucial for the analysis of how agents deal with uncertainty have been gaining increasing relevance on the economic research agenda. In this paper, we analyze the institutional literature aiming to explain why this perspective obtains better results than others in development economics. In particular, we stress the relevance of New Institutional Economics as an adequate framework for a broad understanding of development issues.
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Although researchers have acknowledged that not all institutional change results from the intentional efforts of relatively reflexive actors, we lack an explanation of how mundane interactions between actors can result in non-stra...
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Although researchers have acknowledged that not all institutional change results from the intentional efforts of relatively reflexive actors, we lack an explanation of how mundane interactions between actors can result in non-strategic institutional change. To address this, we advance the theory of institutional drift that reveals how the practice deviation(s) that occur between interaction partners in an institutional order, transformed into tolerable deviations by the self and others, can lead to the non-strategic transformation of that institutional order. Our framework extends the interactionist perspective in organizational institutionalism by showing how interpersonal interactions are animated and constrained by people's passionate attachment to the fundamental sacred ideals, or ethos, underlying institutional orders. It is this connection with ethos that animates the interactional processes tied to both maintaining and disrupting institutions.
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Why do some practices not spread? Although this is an important question for both diffusion theorists and those interested in institutional change, we know surprisingly little about the limitations on diffusion because most diffus...
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Why do some practices not spread? Although this is an important question for both diffusion theorists and those interested in institutional change, we know surprisingly little about the limitations on diffusion because most diffusion studies sample on successful diffusion. I address the question of why some practices fail to spread by introducing the concept of a "deviance discount." A deviance discount is a systematic downgrading of the observed adoption performance of controversial practices, which limits the contagion of such practices. 1 test and find qualitative and quantitative support for my thesis in the product introduction behavior of Swedish mutual fund firms. My findings hold implications for diffusion theory and theories of endogenous institutional change.
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Higher prices for oil, gas and mineral resources have again raised questions about how exporting countries can counter the challenges of resource curse. International experience managing the risks of resource curse has varied. Sum...
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Higher prices for oil, gas and mineral resources have again raised questions about how exporting countries can counter the challenges of resource curse. International experience managing the risks of resource curse has varied. Summarising the continuing discussion on meeting the challenges of the resource curse, this paper addresses four questions: What are the positive and negative effects of high oil, gas and mineral prices on exporters? What have been the experiences with managing natural resource revenues? Can good institutions ensure that natural resource revenues have a positive impact on development? And what is the direction for the way forward? We argue that the current emphasis on 'institutions' as a potential solution has largely ignored under what conditions institutions are formed and changed.
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