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Are Informal Networks Predominantly an Emerging Market Phenomenon?
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Are Informal Networks Predominantly an Emerging Market Phenomenon?

Integrating Yongo (Korea) and Jinmyaku (Japan) into the Current Discourse

13 Seiten · 3,49 EUR
(06. Oktober 2020)

 
 
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From Summary:

In this paper, we have argued that informal networks may not necessarily disappear with economic development and a strengthening of informal institutions, as has been comprehensively discussed in the case of China. We have put forward the pervasive and influential cases of yongo in Korea and jinmyaku in Japan, two advanced and industrialized countries with highly functioning and effective formal institutions. Hence, informal networks are not confined to emerging markets only. In providing an explanation why these networks persist, we have argued that informal networks are culturally as well as institutionally driven; they evolve dynamically and adjust to changes in the environment. Extending the culture-related perspective, we also suggested that countries that distinguish between in and outgroups are especially driven to maintaining informal networks as identity-defining but also exclusive institutions.

In addition, we pointed out that as countries integrate more and more into the global economy, greater competition for jobs, careers and access to resources (tangible and intangible) results. Hence, exploiting informal ties and networks can be seen as an effective way to achieve success.


zitierfähiger Aufsatz aus ...
Firms, Institutions, and the State in East Asia
Cornelia Storz, Markus Taube (Hg.):
Firms, Institutions, and the State in East Asia
the author
Sven Horak

Associate Professor, The Peter J. Tobin College of Business St. John’s University, Queens, New York, United States.