This study tests the hypothesis that lean manufacturing improves the social performance of manufacturers in emerging markets. We analyze an intervention by Nike Inc. to promote the adoption of lean manufacturing in its apparel supply chain across eleven developing countries. Using difference-indifferences estimates from a panel of over three hundred factories, we find that lean adoption was associated with a 15 percentage point reduction in noncompliance with labor standards that primarily reflect factory wage and work hour practices. However, we find a null effect on factory health and safety standards. This pattern is consistent with a causal mechanism that links lean to improved social performance through changes in labor relations, rather than improved management systems. These findings offer evidence that capabilitybuilding interventions may reduce social harm in global supply chains.

Poor working conditions in global supply chains have led to private initiatives that seek to regulate labor practices in developing countries. But how effective are these regulatory programs? We investigate the effects of transnational private regulation by studying Hewlett-Packard's (HP) supplier responsibility program. Using analysis of factory audits, interviews with buyer and supplier management, and field research at production facilities across seven countries, we find that national context -not repeated audits, capability building, or supply chain power -is the key predictor of workplace compliance. Quantitative analysis shows that factories in China are markedly less compliant than those in countries with stronger civil society and regulatory institutions. Comparative field research then illustrates how these local institutions complement transnational private regulation. Although these findings imply limits to private regulation in institutionally poor settings, they also highlight opportunities for productive linkages between transnational actors and local state and society.

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Do purchasing practices support or undermine the regulation of labor standards in global supply chains? This study offers the first analysis of the full range of supply chain regulatory efforts, integrating records of factory labor audits with purchase order microdata. Studying an apparel and equipment retailer with a strong reputation for addressing labor conditions in its suppliers, the authors show that the retailer persuaded factories to improve and terminated factories with poor labor compliance. However, the authors also find that purchase orders did not increase when labor standards improved. If anything, factories whose standards worsened tended to see their orders increase. Contrary to the conventional wisdom, this “missing middle” in incentives for compliance appears unrelated to any cost advantage of noncompliant factories. Instead, lack of flexibility in supplier relationships created obstacles to reallocating orders in response to compliance findings.

This study examines changes in grassroots participation and repression under the Chinese leaders Hu Jintao and Xi Jinping. Under Xi, the Partystate has launched political campaigns against a range of grassroots activists and organizations. This entails a shift in state repression from fragmentation to consolidation, and it has resulted in less room for contentious participation. However, institutionalized political participation-activities by ordinary people aimed at changing government behavior through official channels-has persisted. The Hu administration presided over the development of new institutions of public participation, and there is little evidence for their decay. Despite important breaks from the past under Xi, there are noteworthy continuities in the institutions that enable grassroots participation.

for helpful feedback on this study. We wish to thank Sharlene Song for excellent research assistance and the MIT Sloan School of Management Dean's Innovation Fund for providing travel and research support.

What is the relationship between trade and social institutions in the developing world? The research literature is conflicted: Importing firms may demand that trading partners observe higher labor and environmental standards, or they may penalize higher standards that raise costs. This study uses new data on retailers and manufacturers to analyze how firm‐level trade responds to information about social standards. Contrary to the “race to the bottom” hypothesis, it finds that retail importers reward exporters for complying with social standards. In difference‐in‐differences estimates from over 2,000 manufacturing establishments in 36 countries, achieving compliance is associated with a 4% [1%, 7%] average increase in annual purchasing. The effect is driven largely by the apparel industry—a long‐term target of anti‐sweatshop social movements—suggesting that activist campaigns can shape patterns of global trade.