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Institutional Legitimacy, Cross-Border Trade and Institutional Voids: Insights from the Cocoa Industry in Ghana

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  • Amankwah-Amoah, Joseph
  • Debrah, Yaw
  • Nuertey, Dorcas

Abstract

In spite of a growing body of literature on market opportunism in emerging markets, it remains unclear how supply chain partners abuse the institutional voids emanating from weak markets and legal enforcement mechanisms. This study attempts to integrate the concept of ‘institutional voids’ with that of ‘opportunism in inter-firm relationship’ literature to examine how they create space and conditions for illegitimate activities to occur in a supply chain. Using insights from cocoa production and distribution in Ghana, we uncovered activities such as tampering, adjustment of weighing scales and smuggling as examples of illegitimate activities and abuses in the supply chain. The study revealed that these activities are manifestations of institutional voids arising from weak markets and legal enforcement mechanisms. An analysis of the supply chain partners’ activities illuminates our understanding of the underlying processes inherent in market opportunism. Taken together, the study demonstrates how smuggling and theft-to-smuggle have taken on new prominence as an escape response to the institutional voids in the country. The implications for future research are examined.

Suggested Citation

  • Amankwah-Amoah, Joseph & Debrah, Yaw & Nuertey, Dorcas, 2018. "Institutional Legitimacy, Cross-Border Trade and Institutional Voids: Insights from the Cocoa Industry in Ghana," MPRA Paper 84393, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:84393
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    References listed on IDEAS

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    Cited by:

    1. Kissi, Evans & Herzig, Christian, 2021. "Governance of Decent Work in Ghana’s Cocoa Industry: Implications for Economic and Social Upgrading," 61st Annual Conference, Berlin, Germany, September 22-24, 2021 317070, German Association of Agricultural Economists (GEWISOLA).
    2. Adomako, Samuel & Amankwah-Amoah, Joseph & Ahsan, Mujtaba, 2023. "Base of the pyramid orientation, imitation orientation and new product performance in an emerging market," Technovation, Elsevier, vol. 119(C).
    3. Franczak, Jennifer & Lanivich, Stephen E. & Adomako, Samuel, 2023. "Filling institutional voids: Combinative effects of institutional shortcomings and gender on the alertness – Opportunity recognition relationship," Journal of Business Research, Elsevier, vol. 155(PB).
    4. Nyame-Asiamah, Frank & Amoako, Isaac Oduro & Amankwah-Amoah, Joseph & Debrah, Yaw A., 2020. "Diaspora entrepreneurs’ push and pull institutional factors for investing in Africa: Insights from African returnees from the United Kingdom," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    5. Frederick Ahen & Joseph Amankwah-Amoah, 2018. "Institutional Voids and the Philanthropization of CSR Practices: Insights from Developing Economies," Sustainability, MDPI, vol. 10(7), pages 1-27, July.
    6. Al-Atwi, Amer Ali & Amankwah-Amoah, Joseph & Khan, Zaheer, 2021. "Micro-foundations of organizational design and sustainability: The mediating role of learning ambidexterity," International Business Review, Elsevier, vol. 30(1).

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    More about this item

    Keywords

    Africa; Ghana; cocoa industry; cross-border trade; supply chain; trade.;
    All these keywords.

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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