Factors of Development of Hybrid Institutional Agreements in Traditional Societies

Abstract

This paper analyzes the reasons why hybrid organizations appear in some traditional communities, but not in others. For this purpose, a field study was conducted in three villages in Dagestan, where there is different dynamic of cooperation between local entrepreneurs. The interviews show that the main factors in the development of hybrid organization are the presence of closed social capital, informal regulators within the community, the presence of demand for community products in foreign markets, and the ability of local entrepreneurs to borrow know-how from outside the community. In addition, the following barriers to the development of hybrids were identified: low quality of the institutional environment, differences in the approach to doing business among community residents, and rural depopulation.