IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v82y2023ics0301420723001927.html
   My bibliography  Save this article

Impact of the formal and informal institutions on the performance of Indian mining companies: A fuzzy set QCA analysis

Author

Listed:
  • Upadhyay, Saurabh

Abstract

The extractive industry is marred with a permanent marker of being anti-stakeholders. The current shift of focus upon stakeholder salience, welfare, and collaboration has provided favourable results to extractive companies. Although similar in terms of nature of ownership, geography, and scale of operations, there's a stark contrast in the performances of the state-owned coal mining companies in India. The article wishes to explicate the subtle reasons for variances in the performances of two neighbouring and similar coal mining giants in India through an institutional analysis. The inductive study collects data from the field (25 interviews). Fuzzy Set Qualitative Comparative Analysis (fsQCA) of 12 mines reveals the contrasting causal pathways explaining the impacts of formal and informal institutions on mining companies' outcomes and productivities. The study showed that the lack of generalized trust and generally high levels of corruption around the mining operations provides space for parallel institutions like the mining mafia to gain legitimacy, thus hampering the productivity of the State-owned mining companies.

Suggested Citation

  • Upadhyay, Saurabh, 2023. "Impact of the formal and informal institutions on the performance of Indian mining companies: A fuzzy set QCA analysis," Resources Policy, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:jrpoli:v:82:y:2023:i:c:s0301420723001927
    DOI: 10.1016/j.resourpol.2023.103484
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420723001927
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2023.103484?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Suescun, Rodrigo, 2020. "A tool for fiscal policy planning in a medium-term fiscal framework: The FMM-MTFF model," Economic Modelling, Elsevier, vol. 88(C), pages 431-446.
    2. Kemp, Deanna & Owen, John R., 2013. "Community relations and mining: Core to business but not “core business”," Resources Policy, Elsevier, vol. 38(4), pages 523-531.
    3. Carroll, Archie B., 1991. "The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders," Business Horizons, Elsevier, vol. 34(4), pages 39-48.
    4. Christian Bjørnskov, 2007. "Determinants of generalized trust: A cross-country comparison," Public Choice, Springer, vol. 130(1), pages 1-21, January.
    5. Freeman, R. Edward, 1994. "The Politics of Stakeholder Theory: Some Future Directions1," Business Ethics Quarterly, Cambridge University Press, vol. 4(4), pages 409-421, October.
    6. Gilberthorpe, Emma & Banks, Glenn, 2012. "Development on whose terms?: CSR discourse and social realities in Papua New Guinea's extractive industries sector," Resources Policy, Elsevier, vol. 37(2), pages 185-193.
    7. Zvarivadza, T., 2018. "Large scale miners - Communities partnerships: A plausible option for communities survival beyond mine closure," Resources Policy, Elsevier, vol. 56(C), pages 87-94.
    8. Frank Vanclay & Philippe Hanna, 2019. "Conceptualizing Company Response to Community Protest: Principles to Achieve a Social License to Operate," Land, MDPI, vol. 8(6), pages 1-31, June.
    9. Khezri, Mohsen & Heshmati, Almas & Ghazal, Reza & Khodaei, Mehdi, 2022. "Non-resource revenues and the resource curse in different institutional structures: The DIGNAR-MTFF model," Resources Policy, Elsevier, vol. 79(C).
    10. Zvarivadza, T., 2018. "Artisanal and Small-Scale Mining as a challenge and possible contributor to Sustainable Development," Resources Policy, Elsevier, vol. 56(C), pages 49-58.
    11. Pereira, Vijay & Tuffour, James & Patnaik, Swetketu & Temouri, Yama & Malik, Ashish & Singh, Sanjay Kumar, 2021. "The quest for CSR: Mapping responsible and irresponsible practices in an intra-organizational context in Ghana’s gold mining industry," Journal of Business Research, Elsevier, vol. 135(C), pages 268-281.
    12. Esteves, A.M., 2008. "Mining and social development: Refocusing community investment using multi-criteria decision analysis," Resources Policy, Elsevier, vol. 33(1), pages 39-47, March.
    13. Owen, John R. & Kemp, Deanna, 2013. "Social licence and mining: A critical perspective," Resources Policy, Elsevier, vol. 38(1), pages 29-35.
    14. Holley, Elizabeth A. & Mitcham, Carl, 2016. "The Pebble Mine Dialogue: A case study in public engagement and the social license to operate," Resources Policy, Elsevier, vol. 47(C), pages 18-27.
    15. Endl, Andreas & Tost, Michael & Hitch, Michael & Moser, Peter & Feiel, Susanne, 2021. "Europe's mining innovation trends and their contribution to the sustainable development goals: Blind spots and strong points," Resources Policy, Elsevier, vol. 74(C).
    16. Catherine Welch & Rebecca Piekkari & Emmanuella Plakoyiannaki & Eriikka Paavilainen-Mantymaki, 2011. "Theorising from case studies: Towards a pluralist future for international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(5), pages 740-762, June.
    17. Elaine Lawson & Gloria Bentil, 2014. "Shifting sands: changes in community perceptions of mining in Ghana," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 16(1), pages 217-238, February.
    18. Bamidele, Seun & Erameh, Nicholas Idris, 2023. "Environmental degradation and sustainable peace dialogue in the Niger delta region of Nigeria," Resources Policy, Elsevier, vol. 80(C).
    19. Das, Khanindra Ch & Mahalik, Mantu Kumar & Sadorsky, Perry, 2023. "Tax provision by international subsidiaries of Indian extractive industry multinationals: Do environmental pollution and corruption matter?," Resources Policy, Elsevier, vol. 80(C).
    20. Che, Shuai & Wang, Jun, 2022. "Can environmental regulation solve the carbon curse of natural resource dependence: Evidence from China," Resources Policy, Elsevier, vol. 79(C).
    21. Grainne Oates & Louise Kloot, 2014. "Corporatized Public Land Development Bodies in Australia: Who Are the Stakeholders and Why Are They Important?," International Journal of Public Administration, Taylor & Francis Journals, vol. 37(3), pages 163-173.
    22. Carmelo Cennamo & Pascual Berrone & Luis Gomez-Mejia, 2009. "Does Stakeholder Management have a Dark Side?," Journal of Business Ethics, Springer, vol. 89(4), pages 491-507, November.
    23. Poelzer, Gregory & Yu, Stan, 2021. "All trust is local: Sustainable development, trust in government and legitimacy in northern mining projects," Resources Policy, Elsevier, vol. 70(C).
    24. Shen, Lixin & Muduli, Kamalakanta & Barve, Akhilesh, 2015. "Developing a sustainable development framework in the context of mining industries: AHP approach," Resources Policy, Elsevier, vol. 46(P1), pages 15-26.
    25. Tarrow, Sidney, 1996. "Making Social Science Work Across Space and Time: A Critical Reflection on Robert Putnam's Making Democracy Work," American Political Science Review, Cambridge University Press, vol. 90(2), pages 389-397, June.
    26. Yugank Goyal, 2018. "The Coal Mine Mafia of India: A Mirror of Corporate Power," American Journal of Economics and Sociology, Wiley Blackwell, vol. 77(2), pages 541-574, March.
    27. Li, Yongbo & Barrueta Pinto, Mark Christhian & Kumar, D. Thresh, 2023. "Analyzing sustainability indicator for Chinese mining sector," Resources Policy, Elsevier, vol. 80(C).
    28. Alvaro Cuervo-Cazurra & Ulf Andersson & Mary Yoko Brannen & Bo Bernhard Nielsen & A. Rebecca Reuber, 2016. "From the Editors: Can I trust your findings? Ruling out alternative explanations in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(8), pages 881-897, October.
    29. Agnieszka Chidlow & Emmanuella Plakoyiannaki & Catherine Welch, 2014. "Translation in cross-language international business research: Beyond equivalence," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(5), pages 562-582, June.
    30. Alves, Wellington & Ferreira, Paula & Araújo, Madalena, 2021. "Challenges and pathways for Brazilian mining sustainability," Resources Policy, Elsevier, vol. 74(C).
    31. Liu, Quanlong & Wang, Jingzhi & Qiu, Zunxiang, 2023. "Data as evidence: Research on the influencing factors and mechanisms of coal mine safety supervision effect in China," Resources Policy, Elsevier, vol. 81(C).
    32. Destek, Mehmet Akif & Adedoyin, Festus & Bekun, Festus Victor & Aydin, Sercan, 2023. "Converting a resource curse into a resource blessing: The function of institutional quality with different dimensions," Resources Policy, Elsevier, vol. 80(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael O. Erdiaw-Kwasie & Khorshed Alam & Md. Shahiduzzaman, 2017. "Towards Understanding Stakeholder Salience Transition and Relational Approach to ‘Better’ Corporate Social Responsibility: A Case for a Proposed Model in Practice," Journal of Business Ethics, Springer, vol. 144(1), pages 85-101, August.
    2. Walsh, Bríd & van der Plank, Sien & Behrens, Paul, 2017. "The effect of community consultation on perceptions of a proposed mine: A case study from southeast Australia," Resources Policy, Elsevier, vol. 51(C), pages 163-171.
    3. Veldhuizen, Caroline & Desouza, Kevin C. & Bandara, Wasana & Chang, Artemis, 2022. "How much is not enough: Corporate social responsibility and beyond in the resources sector," Resources Policy, Elsevier, vol. 79(C).
    4. Devenin, Verónica, 2021. "Collaborative community development in mining regions: The Calama Plus and Creo Antofagasta programs in Chile," Resources Policy, Elsevier, vol. 70(C).
    5. Fraser, Jocelyn & Kunz, Nadja C. & Batdorj, Bulgan, 2019. "Can mineral exploration projects create and share value with communities? A case study from Mongolia," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    6. Anne Elizabeth Fordham & Guy M. Robinson, 2018. "Mapping meanings of corporate social responsibility – an Australian case study," International Journal of Corporate Social Responsibility, Springer, vol. 3(1), pages 1-20, December.
    7. Frederiksen, Tomas, 2018. "Corporate social responsibility, risk and development in the mining industry," Resources Policy, Elsevier, vol. 59(C), pages 495-505.
    8. Owen, John R. & Kemp, Deanna, 2017. "Social management capability, human migration and the global mining industry," Resources Policy, Elsevier, vol. 53(C), pages 259-266.
    9. Mason, Claire M. & Paxton, Gillian & Parsons, Richard & Parr, Joanna M. & Moffat, Kieren, 2014. "“For the benefit of Australians”: Exploring national expectations of the mining industry," Resources Policy, Elsevier, vol. 41(C), pages 1-8.
    10. Aloysius Newenham-Kahindi & Charles E Stevens, 2018. "An institutional logics approach to liability of foreignness: The case of mining MNEs in Sub-Saharan Africa," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(7), pages 881-901, September.
    11. A Rebecca Reuber & Pavlos Dimitratos & Olli Kuivalainen, 2017. "Beyond categorization: New directions for theory development about entrepreneurial internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(4), pages 411-422, May.
    12. Fordham, Anne Elizabeth & Robinson, Guy M. & Blackwell, Boyd Dirk, 2017. "Corporate social responsibility in resource companies – Opportunities for developing positive benefits and lasting legacies," Resources Policy, Elsevier, vol. 52(C), pages 366-376.
    13. Lyon Salia Awuah & Kwame Oduro Amoako & Stephen Yeboah & Emmanuel Opoku Marfo & Peter Ansu-Mensah, 2021. "Corporate Social Responsibility (CSR): motivations and challenges of a Multinational Enterprise (MNE) subsidiary’s engagement with host communities in Ghana," International Journal of Corporate Social Responsibility, Springer, vol. 6(1), pages 1-13, December.
    14. Blesia, Jhon Urasti & Dixon, Keith & Lord, Beverley Rae, 2023. "Indigenous experiences and perspectives on a mining corporation's community relations and development activities," Resources Policy, Elsevier, vol. 80(C).
    15. Gary Knight & Agnieszka Chidlow & Dana Minbaeva, 2022. "Methodological fit for empirical research in international business: A contingency framework," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(1), pages 39-52, February.
    16. Alex Osei-Kojo & Nathan Andrews, 2020. "A developmental paradox? The “dark forces” against corporate social responsibility in Ghana’s extractive industry," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(2), pages 1051-1071, February.
    17. Wilson, Sigismond A., 2022. "Measuring the effectiveness of corporate social responsibility initiatives in diamond mining areas of Sierra Leone," Resources Policy, Elsevier, vol. 77(C).
    18. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    19. WANG Jifu & GUPTA Vipin & LYBOLT Liza & WANG Xiuli, 2022. "Corrected Game Model In Csr: Mnc Strategies And Chinese Practice," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(3), pages 269-287, December.
    20. Müllner, Jakob & Puck, Jonas, 2018. "Towards a holistic framework of MNE–state bargaining: A formal model and case-based analysis," Journal of World Business, Elsevier, vol. 53(1), pages 15-26.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:82:y:2023:i:c:s0301420723001927. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.