Can Technological Innovations Improve Private Regulation in the Global Economy?

Abstract

Those supplying private regulation in the global economy face two fundamental challenges if they are to ameliorate the problems for which they create these systems: targets must conform to, while demanders must have proof of, regulatory compliance. This paper explores an important area absent from assessments as to whether, when, and how, private regulatory bodies are successful in improving behavior and rewarding compliant firms: the role of technological innovations. Employing an inductive, comparative case study analysis, we offer an analytical framework that distinguishes technological innovations that improve tracking mechanisms from innovations that directly improve on-the-ground performance. We illustrate the utility of the analytical framework through an assessment of technological innovations in shaping “non-state market driven” global certification programs governing forestry, fisheries, coffee, e-waste, and climate.

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“…37 Moreover, the larger the supplier, the more options it, too, is likely to have (to sell to other retailers or producers, for example), which limits the power a lead firm has in its 36 Fuchs and Kalfagianni 2010. 37 Auld et al 2010. chain. As Locke has pointed out in the apparel sector, for example, suppliers often have more options and lead firms less power than they might think.…”

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“…12 Bartley 2010; Green 2010b. 13 Auld, Cashore, et al 2010;Fuchs and Kalfagianni 2010. 14 The main rules for keeping kosher are specified in Jewish religious texts and thus are not the subject of demand.…”