Rethinking Collective Action: The Co-Evolution of the State and Institutional Entrepreneurs in Emerging Economies

Abstract

Why do groups form to influence policy outcomes? Classic notions of collective action tell us that a small number of homogeneous individuals are more likely to organize and thus achieve their preferred policy outcomes. Yet, this is not always reflected in the empirical record as external factors, such as the state, influence the costs of organizing. Instead, the traditional collective action literature largely assumes a purely rational or passive state. While the institutional entrepreneurship literature highlights the key role these actors can play in shaping institutions and, at times, organizational fields, it does not seek to explain why change agents appear in some instances and not others. This article seeks to fill this theoretical gap by drawing on the co-evolution literature, which helps explain the variation in group formation by underscoring how the state and institutional entrepreneurs shape one another. Utilizing rich qualitative data from the microfinance industry in Brazil and Mexico, this research asserts that the formation of microfinance associations is a function of actors’ ability to access the state, which results in distinct processes: co-evolution by isolation or co-optation. This process has subsequent implications for institutional change, policy outcomes, and, ultimately, the distribution of power and prospects of development within emerging economies.

Administrative leaders as institutional entrepreneurs in developing countries: A study of the development and institutionalization of performance management in Ghana's public service

“…In this way, this group of leaders attempted to alter the institutional path that had been created over the years (Sotarauta, ). We thus agree with Wahid and Sein () who say that IEs are the driving forces behind the institutionalization of public systems—in our case, PM—in developing countries (see Sutheewasinnon et al, ), especially if they are backed by an active, rather than a passive, state (Olsen, ; Ostrom, ). They are crucial for framing and articulating problems in clear and simple terms (Mizrahi, ) in a complex and dynamic environment (Rafiqui, ).…”

To do or not to do? A typology of ethical dilemmas in services (TEDS)

“…For example, some eco-friendly travel companies face an external dilemma in offering wildlife attractions like captive dolphin shows, sea turtle nesting visits, or rainforest tours to satisfy customers, increase revenue, and achieve ethical and sustainable goals (Moorhouse et al ., 2017). Furthermore, some microfinancing organizations confront a dilemma between providing microfinance services and loans with interest rates to impoverished communities, knowing that these services or loans may not effectively lift people out of poverty (Olsen, 2017).…”