Informal sellers and formal markets: a habitus gap

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jaqueline Pels ◽  
Luis Araujo ◽  
Tomas Andres Kidd

Purpose In developing economies, 30% of the gross domestic product on average is undertaken by unregistered businesses. The informal economy leads to high opportunity costs by preventing gains from trade with strangers. To overcome this obstacle, sellers who usually operate in the informal economy should strive to move to formal markets. Current theories are drawn from a view of markets as institutions governed by formal and informal rules. In a nutshell, informal-formal market transitions must be met with a regulative solution. However, the overall results have been disappointing. This failure invites a re-diagnosis of the problem that informal sellers face to act in formal markets and suggesting novel solutions. This paper aims to address this gap. Design/methodology/approach This is a conceptual paper. The authors adopt MacInnis’s (2011) framework to characterize the approach to theory development. Findings The authors argue that extant views of formal/informal markets differences address only one of Scott’s (2014) three pillars (regulative, normative and cultural-cognitive). By drawing on Bourdieu’s legacy, the authors propose a cultural-cognitive reading of institutions and suggest it offers a lens to understand the problem as an access challenge, and thus a marketing problem. This perspective allows us to conceptualize informal/formal markets as two distinct institutional fields and argues that all individuals inhabit a particular habitus and contend that moving between markets requires a habitus shift. Thus, acting in formal markets involves bridging a habitus gap. Finally, the authors argue the need for a market-facing intermediary that takes on a market habitus bridging role. Research limitations/implications The authors suggest future research efforts could benefit from this new conceptual lens as a means of re-diagnosing other forms of market access that have produced disappointing results. Practical implications By looking at differences between formal and informal markets as a habitus gap, the allocation of public funds to support transitions can be better targeted and spent. Social implications The concept of market-facing intermediaries suggests that the beneficiary (e.g. informal seller) and target populations can be different. This insight could catalyze social innovation and trigger novel perspectives to design systemic solutions. Originality/value Conceptualizing the formal-informal market transition as a habitus gap suggests new directions to resolve access challenges and a new mediator solution.

Author(s):  
Craig R. Carter ◽  
Marc R. Hatton ◽  
Chao Wu ◽  
Xiangjing Chen

Purpose The purpose of this paper is to update the work of Carter and Easton (2011), by conducting a systematic review of the sustainable supply chain management (SSCM) literature in the primary logistics and supply chain management journals, during the 2010–2018 timeframe. Design/methodology/approach The authors use a systematic literature review (SLR) methodology which follows the methodology employed by Carter and Easton (2011). An evaluation of this methodology, using the Modified AMSTAR criteria, demonstrates a high level of empirical validity. Findings The field of SSCM continues to evolve with changes in substantive focus, theoretical lenses, unit of analysis, methodology and type of analysis. However, there are still abundant future research opportunities, including investigating under-researched topics such as diversity and human rights/working conditions, employing the group as the unit of analysis and better addressing empirical validity and social desirability bias. Research limitations/implications The findings result in prescriptions and a broad agenda to guide future research in the SSCM arena. The final section of the paper provides additional avenues for future research surrounding theory development and decision making. Originality/value This SLR provides a rigorous, methodologically valid review of the continuing evolution of empirical SSCM research over a 28-year time period.


2014 ◽  
Vol 29 (2) ◽  
pp. 131-152 ◽  
Author(s):  
Claus Holm ◽  
Frank Thinggaard

Purpose – The authors aim to exploit a natural experiment in which voluntary replace mandatory joint audits for Danish listed companies and analyse audit fee implications of using one or two audit firms. Design/methodology/approach – Regression analysis is used. The authors apply both a core audit fee determinants model and an audit fee change model and include interaction terms. Findings – The authors find short-term fee reductions in companies switching to single audits, but only where the former joint audit contained a dominant auditor. The authors argue that in this situation bargaining power is more with the auditors than in an equally shared joint audit, and that the auditors' incentives to offer an initial fee discount are bigger. Research limitations/implications – The number of observations is constrained by the small Danish capital market. Future research could take a more qualitative research approach, to examine whether the use of a single audit firm rather than two has an effect on audit quality. The area calls for further theory development covering audit fee and audit quality in joint audit settings. Practical implications – Companies should consider their relationship with their auditors before deciding to switch to single auditors. Fee discounts do not seem to reflect long-lasting efficiency gains on the part of the audit firm. Originality/value – Denmark is the first country to leave a mandatory joint audit system, so this is the first time that it is possible to study fee effects related to this.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Torbjørn Bjorvatn

PurposeThe purpose of this conceptual paper is to describe and explain how organisations use internal projects to implement organisation-level strategy objectives.Design/methodology/approachTheory development with an emphasis on explaining key constructs and their mutual relationships. The theoretical contribution is represented in a diagram along with a detailed verbal account.FindingsThe paper develops a dynamic, cross-level framework to illustrate the organisational processes and outcomes that determine project-based strategy implementation within a single organisation. The interplay between the base organisation and the project, and benefits realisation were singled out as key future research areas. The proposed framework engages with central discourses in the fields of project management, strategic management, innovation studies, knowledge management and organisation studies.Research limitations/implicationsOnly the contours of an organisation-level theory of strategically motivated internal projects are outlined. Future research must elaborate on the complexities, the non-linear relationships and the boundary conditions that follow from the proposed framework.Practical implicationsManagers are alerted to the strategic role of internal projects, how these projects help connect strategy and performance and what the accompanying organisational processes and outcomes look like.Originality/valueThe paper constitutes an early conceptual treatment of strategy-driven internal projects as a distinct project category, thus addressing a major knowledge gap in project studies. Organisational project-management theory is extended with suggestions for future research.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dimitrios Kafetzopoulos

PurposeThis study seeks to provide a narrative literature review of existing empirical research, in order to better understand the processes and theory of ambidextrous leadership, as well as its influence on followers, employees and organizations.Design/methodology/approachData from 26 studies were extracted and synthesied providing a critical discussion about the methodological and theoretical aspects of the studies identified in the review.FindingsIt was revealed the attributes for an effective ambidextrous leader, it was presented the recently proposed concept of ambidextrous leadership theory and it was noticed the main criticisms against the findings of the extant ambidextrous leadership literature. It was also identified many research gaps in the literature which in turn can guide academics in the development of ambidextrous leadership.Research limitations/implicationsThe ambidextrous leadership theory represents a novel and unique approach to the domain of leadership for creativity and innovation. It is shared across hierarchical levels throughout the organization. Leaders have a significant effect on employees' behaviors and should determine its applicability to different situations. Organizations require ambidextrous managers who combine flexible, situational and versatile leadership styles developing ever increasingly new and divergent ideas. Many research gaps in the literature were also identified that can guide academics in the development of ambidextrous leadership.Practical implicationsUnderstanding that ambidextrous leadership is required to significantly influence ambidexterity and innovation allows organizations to direct their leadership selection and development.Originality/valueThis review contributes to the ambidextrous leadership literature by creating a holistic picture of where it has been and where it should go.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asli D.A. Tasci

Purpose The purpose of this paper is to: distinguish between financial brand equity and perceptual brand equity; distinguish among different stakeholder perspectives on customer-based brand equity, consumer-based brand equity (CBBE) (consumer, customer, employee and resident); contrast the original definitions and measures of CBBE by Aaker and Keller; identify the deviations from the original conceptualizations and measures of CBBE by Aaker and Keller; discuss the evolution of the most commonly used CBBE components; analyze the structural relations of the most common CBBE components and generate conceptual, structural, relational and methodological suggestions for future research. Design/methodology/approach This critical review conducted a narrative analysis of the perceptual brand equity literature (CBBE) by inventorying about 200 empirical and conceptual CBBE studies in several different contexts. Studies that included CBBE, brand equity, customer-based brand equity and consumer-based brand equity were included in this review. Only 87 representative studies that either conceptually defined or empirically measured CBBE and its components were included in the deep analysis. Findings The review revealed that the literature is divergent in terms of CBBE components or structural relations among components in any context including tourism and hospitality. Even though about 40 different CBBE components exist in different contexts, the totality of the CBBE literature reflects a consensus on five components of CBBE, brand familiarity/brand awareness, brand image/brand associations, perceived quality, consumer value and brand loyalty, all of which collectively define the total meanings of a brand from consumer/customer perspective. Research limitations/implications Keeping these five components intact, this study suggests a concise CBBE definition, conceptual clarifications for these components, a model reflecting their structural relations and a framework of parsimonious measures. The study makes future research recommendations in terms of using uniform CBBE components, measures and relational structure among components, identifying the relationship between CBBE and financial-based brand equity and comparing different stakeholder perspectives on CBBE in future research. Originality/value With these observations and suggestions, this critical review provides a guideline for more robust theory development of the CBBE construct. Additionally, it offers a parsimonious and practical CBBE blueprint for the practitioners who include CBBE as a strategic market metric in their marketing and research plans. Furthermore, it suggests standardization in CBBE research to enable systematic reviews with meta-analysis of the CBBE literature in the future. Using standard components, measures and relational models in CBBE research, as was suggested in this study, would allow meta-analysis for a meaningful comparison of results between different brands, products and even industries.


2020 ◽  
Vol 27 (5) ◽  
pp. 775-795 ◽  
Author(s):  
Iraci de Souza João-Roland ◽  
Maria L. Granados

PurposeIdentify the drivers of social innovation (SI) that bring together the main management tools and approaches associated with the creation of SI in social enterprises (SEs).Design/methodology/approachA systematic review was developed in the Web of Science, Scopus and EBSCO databases, using the keywords: social innovation, social enterprise and management. After analysis of quality and application of inclusion and exclusion criteria, 54 articles were selected for full analysis.FindingsSI process was systemised into four steps: mapping and development, consolidation, scaling up and evaluation. The drivers of SI were mapped and classified into three main factors: contextual, organisational and managerial.Practical implicationsIn organisational factors, business model was emphasised, as well as partnerships, participatory culture and intrapreneurship, adequate levels of bricolage and continuous learning. The management factors included the characteristics of the entrepreneur/innovator and managerial practices, where those that facilitate teamwork and the participation of all involved are best suited. In contextual factors, the highlight was the need for support from policy makers; community participation and demand for innovations that consider local context and usability.Originality/valueThis study connects previously scattered knowledge in a generic model of SI, highlighting routines and processes used, and provides a starting point for innovators and social entrepreneurs in the complex, uncertain and often unknown process of SI. Additionally, several research gaps were identified to be addressed by future research in the context of SI management.


2014 ◽  
Vol 19 (04) ◽  
pp. 1450024 ◽  
Author(s):  
CHRISTOPHER F. ACHUA ◽  
ROBERT N. LUSSIER

There is a growing appreciation for the value and impact of the informal economy on the lives and livelihood of many in developing economies. A key question for researchers has been whether those operating in it do so out of necessity or voluntarily as opportunity seekers? Unlike previous studies that have examined the informal economy as one large block, this paper took a slightly different tangent. First, we analyzed and identified three distinct sub-groups within the informal entrepreneurial sector — the street walker (st. walker), the street corner (st. corner) and store owner (st. owner) — and then examined each group's motives. Reporting the results of face-to-face structured interviews with 200 informal entrepreneurs in Cameroon (West Africa), the finding is that the majority, especially st. walker and st. corner informal entrepreneurs, are predominantly necessity-driven while st. owner entrepreneurs are predominantly opportunity-driven. Our study also revealed a progression pattern whereby st. walkers do progress to st. corner and ultimately to st. owner entrepreneurs. The assumption is that this does create a learning curve effect in the entrepreneurial abilities and effectiveness of store owners. This is an area for future research. There are policy implications for institutional support that can grow the informal economy into the formal economy.


2015 ◽  
Vol 20 (6) ◽  
pp. 574-586 ◽  
Author(s):  
Árni Halldórsson ◽  
Juliana Hsuan ◽  
Herbert Kotzab

Purpose – The aim of this paper is to identify ways by which the theorizing of supply chain management (SCM) takes place, with particular attention to complementary theories. SCM suffers as well as benefits from a “conceptual slack”. Design/methodology/approach – The nature of SCM is discussed, and the role and relevance of theorizing is addressed by using key characteristics of “academic scholarship” based on a literature review of SCM and evaluation of application of theory and theory development. Findings – The integrative and multi-layered nature of SCM sets the conditions for “theorizing SCM” that can take place through various forms: theory application, new theoretical combinations and sensitivity to managerial practice. It is pivotal that future research explore further the performative potential of SCM. Research limitations/implications – Research with focus on theory development or using complementary theories to advancing understanding of SCM can benefit from the five building blocks of theorizing SCM proposed in the paper. Practical implications – Theoretical principles in SCM are not only used to describe practical problems but also to “produce the world”; supply chains can be seen as organizational units that act or consummate an action that delivers a particular performance. Originality/value – This paper portrays SCM sensitivity to managerial challenges by moving from borrowing to a more bilateral view on theorizing of SCM, reflecting the nature of SCM.


2018 ◽  
Vol 35 (5) ◽  
pp. 733-759 ◽  
Author(s):  
Emanuel Gomes ◽  
Ferran Vendrell-Herrero ◽  
Kamel Mellahi ◽  
Duncan Angwin ◽  
Carlos M.P. Sousa

Purpose Whilst substantial evidence from low-corruption, developed market environments supports the view that more productive firms are more likely to export, there has been little research into analysing the link between productivity and exports in high corruption, developing market environments. The purpose of this paper is twofold. First, to test the premise of self-selection theory whether the association between productivity and export is maintained in high-corruption environments, and second to identify other variables explaining export activity in high-corruption contexts, including cluster networks and firms’ competences. Design/methodology/approach The authors draw on the World Bank Enterprise survey to undertake a cross-section analysis including 1,233 small- and medium-sized enterprises (SMEs) located in nine African countries. The advantage of this database is that it contains information about the level of perceived corruption at firm level. Logistic regressions are performed for the full sample and for subsamples of firms in high- and low-corruption environments. Findings The findings demonstrate that the self-selection theory only applies to low-corruption environments, whereas in high-corruption environments, alternative factors such as cluster networks and outward-looking competences (OLC) exert a stronger influence on the exporting activity of African SMEs. Research limitations/implications This research contributes to the theory as it provides evidence that contradicts the validity of self-selection theory in high-corruption environments. The findings would benefit from further longitudinal investigation. Practical implications African SMEs need to consider cluster networks and OLC as important strategic factors that might enhance their international competitiveness. Originality/value The criticism of the self-selection theory is distinctive in the literature and has important implications for future research. The authors show that the contextualisation of existing theories matters and this opens a research avenue for further more sensitive contextualisation of existing theories in developing economies.


2017 ◽  
Vol 9 (2) ◽  
pp. 162-168 ◽  
Author(s):  
Shenggen Fan ◽  
Emily EunYoung Cho ◽  
Christopher Rue

Purpose The paper is a synthesis of the 2017 Global Food Policy Report, and the purpose of this paper is to put into perspective the major food policy issues, developments, and decisions of 2016 and highlights challenges and opportunities for 2017. Design/methodology/approach The paper presents an overview of recent changes in the global context for food security and nutrition, and synthesizes research findings on major issues that arise in an urbanizing world. Based on its findings, the authors present policy recommendations and areas for future research for food security and nutrition. Findings Urbanization is linked with dietary changes to more energy-dense diets, and, the triple burden of malnutrition is increasing, particularly in rapidly urbanizing developing countries. Rural-urban linkages are key to improving food security and nutrition in both rural and urban areas, and traditional agricultural value chains linking farms to cities are undergoing a “quiet revolution.” Governance to enhance food security in the context of rapid urbanization faces various challenges in the institutional, administrative, and political realms, especially for the informal economy in developing countries. To address the unique challenges of urbanization, policies will need to create enabling environments, promote efficient and inclusive value chains, improve governance, and promote tailored programs. Research gaps that need to be filled include better, updated, and disaggregated data on food security and nutrition, as well as an enhanced understanding of enabling environments. Originality/value The paper highlights the increasingly relevant issue of rapid urbanization, especially in developing countries, for food security and nutrition, and synthesizes recent research in this area.


Sign in / Sign up

Export Citation Format

Share Document