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A Dynamic Typology of Informal Institutions: Learning from the Case of Guanxi

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  • Horak, Sven
  • Restel, Katja

Abstract

Currently, the mechanism in which informal institutions, recently discovered as an influential, new paradigm in business and management studies interact with and shape formal institutions remains unclear. Helmke and Levitsky (2004) proposed an outcome-based typology for the interaction of informal institutions with formal ones. By using a structured approach for literature aggregation, we test the proposed typology of Helmke and Levitsky by applying this method to 74 empirical studies to investigate the influence of guanxi on formal institutions. We conclude that guanxi fits into none of the proposed categories perfectly. As a result, we propose the relationship between guanxi and formal institutions as auxiliary as well as competing concurrently, leading to convergent and divergent outcomes, respectively. Moreover, we propose a third category to add to the existing typology, namely ‘formal institutions in transition’. We furthermore incorporate a dynamic aspect to the model by adding two further categories, concerned with the direction of the development. We believe the resulting extension to the original typology of Helmke and Levitsky accurately accounts for the dynamic nature of informal institutions as well as their important role in shaping effective formal institutions.

Suggested Citation

  • Horak, Sven & Restel, Katja, 2016. "A Dynamic Typology of Informal Institutions: Learning from the Case of Guanxi," Management and Organization Review, Cambridge University Press, vol. 12(3), pages 525-546, September.
    • Handle: RePEc:cup:maorev:v:12:y:2016:i:03:p:525-546_00
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    Cited by:

    1. Shahid Ali & Junrui Zhang & Muhammad Usman & Farman Ullah Khan & Amir Ikram & Bilal Anwar, 2019. "Sub-National Institutional Contingencies and Corporate Social Responsibility Performance: Evidence from China," Sustainability, MDPI, vol. 11(19), pages 1-21, October.
    2. Gregory Jackson & Richard Deeg, 2019. "Comparing capitalisms and taking institutional context seriously," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(1), pages 4-19, February.
    3. Chidlow, Agnieszka & Wang, Jue & Liu, Xiaohui & Wei, Yingqi, 2021. "A co-evolution perspective of EMNE internationalization and institutions: An integrative framework of 5Cs," International Business Review, Elsevier, vol. 30(4).
    4. Peter Ping Li & En Xie, 2019. "The unique research on the informal ties and social networks in East Asia: Diverse perspectives and new research agenda," Asia Pacific Journal of Management, Springer, vol. 36(2), pages 305-319, June.
    5. Ning Liu & Zhuo Chen & Guoxian Bao, 2021. "Unpacking the red packets: institution and informal payments in healthcare in China," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(8), pages 1183-1194, November.
    6. Dan Li & Li-Qun Wei & Qing Cao & Deqiu Chen, 2022. "Informal institutions, entrepreneurs’ political participation, and venture internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1062-1090, August.
    7. Fuan Li & Xingyuan Wang & Rajiv Kashyap, 2019. "Socially Responsible Practice and CSR Orientation of Chinese Managers: The Role of Confucian Ethics and Confucian Dynamism," Sustainability, MDPI, vol. 11(23), pages 1-13, November.
    8. Byung Il Park & Sungjin J. Hong & Shufeng Simon Xiao, 2022. "Institutional pressure and MNC compliance to prevent bribery: empirical examinations in South Korea and China," Asian Business & Management, Palgrave Macmillan, vol. 21(4), pages 623-656, September.
    9. Du, Jialin & Bai, Tao & Chen, Stephen, 2019. "Integrating corporate social and corporate political strategies: Performance implications and institutional contingencies in China," Journal of Business Research, Elsevier, vol. 98(C), pages 299-316.
    10. Sdiri, Hanen, 2022. "Impact of formal and informal institutional constraints on innovation: firm-level evidence from Tunisia," MPRA Paper 113792, University Library of Munich, Germany, revised 2022.

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