Bridging the Institutional Divide: Partnerships in Subsistence Markets
Journal of Business Research, 2012, 65, pp. 1721-1727
28 Pages Posted: 28 Jun 2011 Last revised: 1 Jan 2013
Date Written: June 28, 2011
Abstract
The paper analyzes the impact of institutions on the structure of partnerships in subsistence markets (SMs). Grounded in institutional theory and transaction cost economics, the reasoning suggests that partnerships will adapt to the co-existence of SM-specific and external institutions in SMs. SM partnerships will include multiple partners from multiple sectors, each compensating for different institutional gaps in SMs. They will replace governance mechanisms discussed in the literature, such as formal contracts and equity, with substitutes better suited to SM contexts, including informal contracts, in-kind contributions, and gifts. The importance of these mechanisms will depend on the institutional distance between SM-specific and external institutions. Finally, different governance mechanisms will co-exist within the same partnership, as partners originating in the SM will rely on SM-specific institutions, while partners originating outside the SM will prefer to rely on external institutions where possible.
Keywords: subsistence markets, subsistence marketplaces, cross-sector partnerships, base of the pyramid, bottom of the pyramid, institutions, regulation, poverty
JEL Classification: D21, F23, G38, H11, H7, I39, L1, L2, L31, M1, M21, O17
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
MNC Reporting on CSR and Conflict in Central Africa
By Ans Kolk and Francois Lenfant
-
Business and Partnerships for Development
By Ans Kolk, Rob Van Tulder, ...
-
International Business, Corporate Social Responsibility and Sustainable Development
By Ans Kolk and Rob Van Tulder
-
Trickle Effects of Cross-Sector Social Partnerships
By Ans Kolk, Willemijn Van Dolen, ...
-
Corporate Social Responsibility and International Development: Critical Assessment
-
By James E. Austin, Roberto Gutiérrez, ...
-
Aprovechar la convergencia (Capitalizing on Convergence)
By James E. Austin, Roberto Gutiérrez, ...
-
Adaptive Responsibilities: Nonlinear Interactions in Cross Sector Social Partnerships