Table 1 Origin and manifestations of... | Emerald Publishing

Table 1

Origin and manifestations of informal institutional voids

Category of informal institutional void	Origin	Manifestation
Social obligation	Informal institutions emerge as a coordination mechanism, replacing formal institutions to support efficient market transactions. They cause social obligations and block individuals from changing behavior (Portes and Sensenbrenner, 1993)	Social norms such as lending and resource sharing in private networks are pervasive and bind consumers. This affects the appraisal and application of resources
Relationship barrier	Lack of trust in certain social groups deters economic activity by undermining the value and potential for cooperation and social cohesion (de Soto, 2006)	Corruption that breeds mistrust toward certain groups of people. Exclusion/inclusion from social exchange based on perceived “in” and “out” groups
Social exclusion	Social demands and obligations are underpinned by societal norms that exclude certain groups from participating in economic transactions (Khoury and Prasad, 2016)	Creates barriers to participation in the market for affected groups, for example, because of caste systems, gender exclusion, and spatial isolation
Sharing and sanctioning norms	Actors are disadvantaged in their access to resources because of a hierarchy based on elites who leverage power to misappropriate resources (Platteau and Gaspart, 2003)	Disrupt the flow of resources and hamper, for example, local development efforts. Imbalanced access to resources and markets for actors at different hierarchical levels of a system
Prescriptive behaviors influenced by domains	New ideas can be met with skepticism based on prescriptive norms anchored in organized domains of informal institutions, such as religion, family, and markets (Banerjee and Duflo, 2012)	Resistance or rejection of new ideas that do not match the prescriptive norm based on fear of sanctioning

Category of informal institutional void	Origin	Manifestation
Social obligation	Informal institutions emerge as a coordination mechanism, replacing formal institutions to support efficient market transactions. They cause social obligations and block individuals from changing behavior (Portes and Sensenbrenner, 1993)	Social norms such as lending and resource sharing in private networks are pervasive and bind consumers. This affects the appraisal and application of resources
Relationship barrier	Lack of trust in certain social groups deters economic activity by undermining the value and potential for cooperation and social cohesion (de Soto, 2006)	Corruption that breeds mistrust toward certain groups of people.Exclusion/inclusion from social exchange based on perceived “in” and “out” groups
Social exclusion	Social demands and obligations are underpinned by societal norms that exclude certain groups from participating in economic transactions (Khoury and Prasad, 2016)	Creates barriers to participation in the market for affected groups, for example, because of caste systems, gender exclusion, and spatial isolation
Sharing and sanctioning norms	Actors are disadvantaged in their access to resources because of a hierarchy based on elites who leverage power to misappropriate resources (Platteau and Gaspart, 2003)	Disrupt the flow of resources and hamper, for example, local development efforts.Imbalanced access to resources and markets for actors at different hierarchical levels of a system
Prescriptive behaviors influenced by domains	New ideas can be met with skepticism based on prescriptive norms anchored in organized domains of informal institutions, such as religion, family, and markets (Banerjee and Duflo, 2012)	Resistance or rejection of new ideas that do not match the prescriptive norm based on fear of sanctioning

Source(s): Authors’ own work