Toward a theory of the informal economy

Academy of Management Annals

Volumn 5, Issue 1, 2011, Pages 231-277

  Godfrey, Paul C ^a  

^a BRIGHAM YOUNG UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 79960772787     PISSN: 19416520     EISSN: 19416067     Source Type: Journal    
DOI: 10.1080/19416520.2011.585818     Document Type: Review

References (123)

1. A & M Records, Inc. v. Napster. (2001). 239 F.3d 1004: 9th Cir.
2. Acquaah, M. (2007). Managerial social capital, strategic orientation, and performance. Strategic Management Journal, 28(12), 1235-1255.
3. Alchian, A.A., & Woodward, S. (1988). The firm is dead: Long live the firm A review of Oliver E. Williamson's the economic institutions of capitalism. Journal of Economic Literature, 26(1), 65-79.
4. Apressyan, R.G. (1997). Business ethics in Russia. Journal of Business Ethics, 16(14), 1561-1570.
5. Argandona, A. (1999). Business ethics in Spain. Journal of Business Ethics, 22(3), 155-173.
6. Avtonomov, V. (2006). Balancing state, market and social justice: Russian experiences and lessons to learn. Journal of Business Ethics, 66(1), 3-9.
7. Banfield, E.C. (1958). The moral basis of a backward society. New York: Free Press.
8. Barnard, C.I. (1938). The functions of the executive. Cambridge, MA: Harvard University Press.
9. Barney, J.B. (1986). Organizational culture: Can it be a source of sustained competitive advantage? Academy of Management Review, 11, 656-665.
10. Barney, J.B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99-120.
11. Barney, J.B., & Hansen, M.H. (1994). Trustworthiness as a source of competitive advantage. Strategic Management Journal, 15, S175-190.
12. Baumol, W.J., Litan, R.E., & Schramm, C.J. (2007). Good capitalism, bad capitalism and the economics of growth and prosperity. New Haven: Yale University Press.
13. Becker, K.F. (2004). The informal economy. Stockholm: Swedish International Development Agency.
14. Bennett, J.W. (1958). Economic aspects of a boss-henchman system in the Japanese forestry industry. Economic Development and Cultural Change, 7(1), 13-30.
15. Besley, T., & Burgess, R. (2004). Can labor regulation hinder economic performance? Evidence from India. The Quarterly Journal of Economics, 119(1), 91-134.
16. Bhattacharyya, D.K. (2004). On the use of the hidden economy estimates. Public Choice, 118(1/2), 169-181.
17. Bhattacharyya, D.K., & Ghose, S. (1998). Corruption in India and the hidden economy. Economic and Political Weekly, 33(44), 2795-2799.
18. Blanchard, O., & Katz, L.F. (1999). Wage dynamics: Reconciling theory and evidence. The American Economic Review, 89(2), 69-74.
19. Bohata, M. (1997). Business ethics in Central and Eastern Europe with special focus on the Czech Republic. Journal of Business Ethics, 16(14), 1571-1577.
20. Bolton, P., & Dewatripont, M. (Ed.). (2005). Boston. Contract theory. MIT Press.
21. Booth, W.J. (1993). Households: On the moral architecture of the economy. Ithaca, NY: Cornell University Press.
22. Boisot, M., & Child, J. (1996). From fiefs to clans and network capitalism: Explaining China's emerging economic order. Administrative Science Quarterly, 41(4), 600-628.
23. Carrera, A., Mesquita, L., Perkins, G., & Vassolo, R. (2003). Business groups and their corporate strategies on the Argentine roller coaster of competitive and anti-competitive shocks. Academy of Management Executive, 17(3), 32-44.
24. Castells, M., & Portes, A. (1989). World underneath: The origins, dynamics, and effects of the informal economy. In A. Portes, M. Castells, & L.A. Benton (Eds.), The informal economy: Studies in advanced and less developed countries (pp. 11-37). Baltimore: Johns Hopkins University Press.
25. Centeno, M.A., & Portes, A. (2006). The informal economy in the shadow of the state. In P. Fernandez-Kelly & J. Scheffner (Eds.), Out of the shadows: The informal economy and political movements in Latin America (pp. 23-49). Princeton, NJ: Princeton University Press.
26. Chakraborty, S.K. (1997). Business ethics in India. Journal of Business Ethics, 16(14), 1529-1538.
27. Channell, W. (2008). Law as relationship: Toward a more effective and ethical legal reform. Economic Self-Reliance Review, 10(2), 20-28.
28. Chen, M.A. (2006). Rethinking the informal economy: Linkages with the formal economy and the formal regulatory environment. In B. Guha-Khansnobis, R. Kanbur, & E. Ostrom (Eds.), Linking the formal and informal economy (pp. 93-120). Oxford, England: Oxford University Press.
29. Coleman, J.T. (1988). Social capital in the creation of human capital. The American Journal of Sociology, 94 (Supplement - Organizations and institutions: Sociological and economic approaches to the analysis of social structure), 95-120.
30. Cuddington, J.T. (1993). Further results on the macroeconomic effects of AIDS: The dualistic, labor-surplus economy. The World Bank Economic Review, 7(3), 403-417.
31. Davis, M.S. (1971). That's interesting!: Towards a phenomenology of sociology and a sociology of phenomenology. Philosophy of the Social Sciences, 1, 309-344.
32. de Soto, H. (2000). The mystery of capital. New York: Basic Books.
33. Di Tella, R., Galiana, S., & Schardgrodsky, E. (2004). Property rights and beliefs: Evidence from the allocation of land titles to squatters, Ronald Coase Institute Working Paper Series.
34. Durkheim, E. (1933/1984). The division of labor in society, (W. D. Halls, rans.). New York: Free Press.
35. Dyer, J.H., & Singh, H. (1998). The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, 23, 660-679.
36. Dyer, W.G., & Mortensen, S.P. (2005). Entrepreneurship and family business in a hostile environment: The case of Lithuania. Family Business Review, 18(3), 247-258.
37. Easterly, W.R. (2001). The elusive quest for growth: Economists' adventures and misadventures in the tropics. Cambridge, MA: MIT Press.
38. Easterly, W.R. (2006). The white man's burden: Why the West's efforts to aid the rest have done so much ill and so little good. New York: Penguin.
39. Farella, J.R. (1984). The main stalk: A synthesis of Navajo philosophy. Tucson: University of Arizona Press.
40. Fortuna, J.C., & Prates, S. (1989). Informal sector versus informalized labor relations in Uruguay. In A. Portes, M. Castells, & L.A. Benton (Eds.), The informal economy: Studies in advanced and less developed countries (pp. 78-94). Baltimore: Johns Hopkins University Press.
41. Francois, P. (2002). Social capital and economic development. London: Routledge.
42. Freeman, R.E. (1984). Strategic management: A stakeholder approach. Marshfield, MA: Pitman.
43. Freeman, R.E., Harrison, J.S., & Wicks, A. (2008). Managing for stakeholders: Survival, reputation, and success. New Haven: Yale University Press.
44. Friedland, R., & Alford, R.R. (1991). Bringing society back in: Symbols, practices, and institutional contradictions. In W.W. Powell & P.J. DiMaggio (Eds.), The new institutionalism in organizational analysis (pp. 232-266). Chicago: University of Chicago Press.
45. Fukuyama, F. (1995). Trust: The social virtues and the creation of prosperity. New York: Free Press.
46. Gabriel, G.E., & Cornfield, D.B. (1995). Segmentation and standardization of income determination in developing nations: An analysis of urban-rural differences in income determinants in Sri Lanka. Economic Development and Cultural Change, 43(4), 717-734.
47. Gaughan, J.P., & Ferman, L.A. (1987). Toward an understanding of the informal economy. Annals of the American Academy of Political and Social Science, 493, 15-25.
48. Geertz, C. (1963). Peddlers and princes. Chicago: University of Chicago Press.
49. Geldart, W. (1984). Introduction to English law. London: DCM Yardley.
50. Godfrey, P.C., & Dyer, W.G. (2011). Subsistence entrepreneurs and formal institutions, BYU Marriott School Working Paper Series. Provo, UT.
51. Gong, X., van Soest, A., & Villagomez, E. (2004). Mobility in the urban labor market: A panel data analysis for Mexico. Economic Development and Cultural Change, 53(1), 1-36.
52. Guha-Khansnobis, B., Kanbur, R., & Ostrom, E. (2006). Beyond formality and informality. In B. Guha-Khansnobis, R. Kanbur, & E. Ostrom (Eds.), Linking the formal and informal economy: Concepts and policies (pp. 1-18). Oxford, England: Oxford University Press.
53. Harrison, L.E. (2003). Introduction, Why culture matters. In L.E. Harrison & S.P. Huntington (Eds.), Culture matters (pp. xvii-il). New York: Basic Books.
54. Hart, K. (1973). Informal income opportunities in urban employment in Ghana. Journal of Modern African Studies, 11(1), 61-89.
55. Hart, K. (2006). Bureaucratic form and the informal economy. In B. Guha-Khansnobis, R. Kanbur, & E. Ostrom (Eds.), Linking the formal and informal economy (pp. 21-36). Oxford, England: Oxford University Press.
56. Hart, S.L. (2005). Capitalism at the crossroads: The unlimited business opportunities in solving the world's most difficult problems. Upper Saddle River, NJ: Wharton School.
57. Hart, S.L. (2007). Capitalism at the crossroads: The unlimited business opportunities in solving the world's most difficult problems (2nd ed.). Upper Saddle River, NJ: Wharton School.
58. Henry, S. (1987). The political economy of informal economies. Annals of the American Academy of Political and Social Science, 493, 137-153.
59. Hosmer, L.T. (1994). Strategic planning as if ethics mattered. Strategic Management Journal, 15, 17-34.
60. Hudson, R., & Wehrell, R. (2005). Socially responsible investors and the microentrepre-neur: A Canadian case. Journal of Business Ethics, 60(3), 281-292.
61. ILO. (2002). Men and women in the informal economy: A statistical picture. Geneva: Author
62. Johnson, S., Kaufmann, D., & Zoido-Lobaton, P. (1998). Regulatory discretion and the unofficial economy. The American Economic Review, 88(2), 387-392.
63. Karnani, A. (2007a). The mirage of marketing to the bottom of the pyramid. California Management Review, 49(4), 90-111.
64. Karnani, A. (2007b). Doing well by doing good-Case study: "Fair and Lovely" whitening cream. Strategic Management Journal, 28, 1351-1357.
65. Karnani, A. (2009). Romancing the poor. Stanford Social Innovation Review, 7, 38-43.
66. Khanna, T., & Rivkin, J.W. (2001). Estimating the performance effects of business groups in emerging markets. Strategic Management Journal, 22, 45-74.
67. LaPorta, R., & Schleifer, A. (2008). The unofficial economy and economic development, Working Paper Series (pp. 1-75). Washington, DC: National Bureau of Economic Research.
68. Lazzarini, S.G., Miller, G.J., & Zenger, T. (2004). Order with some law: Complementarity vs. substitution of formal and informal arrangements. Journal of Law, Economics, and Organization, 20(2), 261-298.
69. Lemieux, T., Fortin, B., & Frechette, P. (1994). The effect of taxes on labor supply in the underground economy. The American Economic Review, 84(1), 231-254.
70. Lewis, W.A. (1954/1958). Economic development with unlimited supplies of labor. In A.N. Agarwala & S.P. Singh (Eds.), The economics of underdevelopment (pp. 401-449). London: Oxford University Press.
71. Li, J.L., Zhou, K.Z., & Shao, A.T. (2009). Competitive position, managerial ties, and profitability of foreign firms in China: An interactive perspective. Journal of International Business Studies, 40, 339-352.
72. London, T. (2009). Making better investments at the base of the pyramid. Harvard Business Review, 87(5), 106-113.
73. London, T., & Hart, S.L. (2004). Reinventing strategies for emerging markets: Beyond the transnational model. Journal of International Business Studies, 35(5), 350-370.
74. London, T., & Hart, S.L. (2011). Creating a fortune with the base of the pyramid. In T. London & S.L. Hart (Eds.), Next generation business strategies for the base of the pyramid (pp. 1-18). Upper Saddle River, NJ: FT Press.
75. Maloney, W.F. (1999). Does informality imply segmentation in urban labor markets? Evidence from sectoral transitions in Mexico. The World Bank Economic Review, 13(2), 275-302.
76. Marcouiller, D., & Young, L. (1995). The black hole of graft: The predatory state and the informal economy. American Economic Review, 85(3), 630-646.
77. Mayer, R.C., Davis, J.H., & Schoorman, F.D. (1995). An integrative model of organizational trust. Academy of Management Review, 20(3), 709-734.
78. McMillan, J. (2002). Reinventing the bazaar: A natural history of markets. New York: W. W. Norton.
79. Meagher, K. (1990). The hidden economy: Informal and parallel trade in Northwestern Uganda. Review of African Political Economy, 47, 64-83.
80. Mortenson, G., & Relin, D.O. (2006). Three cups of tea. New York: Penguin.
81. North, D.C. (1990). Institutions, institutional change and economic performance. New York: Cambridge University Press.
82. Nwabuzor, A. (2005). Corruption and development: New initiatives in economic openness and strengthened rule of law. Journal of Business Ethics, 59(1/2), 121-138.
83. Ouchi, W.G. (1982). Theory Z. New York: Avon Books.
84. Parsons, T. (1947). Introduction. In T. Parsons (Ed.), The theory of economic and social organization. New York: Free Press.
85. Paul, K., & Barbato, R. (1985). The multinational corporation in the less developed country: The economic development model versus the North-South model. Academy of Management Review, 10(1), 8-14.
86. Peng, M.W. (2003). Institutional transitions and strategic choices. Academy of Management Review, 28(2), 275-296.
87. Peng, M.W., & Heath, P.S. (1996). The growth of the firm in planned economics in transition: Institutions, organizations, and strategic choice. Academy of Management Review, 21(2), 492-528.
88. Peng, M.W., & Lou, Y. (2000). Managerial ties and firm performance in a transition economy: The nature of the micro-macro link. Academy of Management Journal, 43(3), 486-501.
89. Peng, M.W., & Shekshnia, S.V. (2001). How entrepreneurs create wealth in transition economics (and executive commentary). The Academy of Management Executive, 15(1), 95-110.
90. Perdomo, R.P. (1990). Corruption and business in present day Venezuela. Journal of Business Ethics, 9(7), 555-566.
91. Pfeffer, J. (1993). Barriers to the advance of organizational science: Paradigm development as a dependent variable. Academy of Management Review, 18, 599-620.
92. Piggott, J., & Whalley, J. (2001). VAT base broadening, self-supply, and the informal sector. The American Economic Review, 91(4), 1084-1094.
93. Polanyi, K. (1957). The economy as instituted process. In K. Polanyi, C.M. Arensberg, & H.W. Pearson (Eds.), Trade and market in the early empires (pp. 243-270). Chicago: Henry Regnery Company.
94. Poppo, L., & Zenger, T. (2004). Testing alternative theories of the firm: Transaction cost, knowledge-based, and measurement explanations for make-or-buy decisions in information services. Strategic Management Journal, 19, 853-877.
95. Portes, A., & Haller, W. (2005). The informal economy. In N. Smelser & R. Swedberg (Eds.), Handbook of economic sociology (2nd ed., pp. 403-425). New York: Russell Sage Foundation.
96. Portes, A., & Sensenbrenner, J. (1993). Embeddedness and immigration: Notes on the social determinants of economic action. American Journal of Sociology, 98(6), 1320-1350.
97. Prahalad, C.K. (2005). The fortune at the bottom of the pyramid. Pennsylvania: Wharton School.
98. Prahalad, C.K., & Hart, S. (2002). The fortune at the bottom of the pyramid. Strategy+Business, 26, 54-67.
99. Putnam, R.D. (2000). Bowling alone: The collapse and revival of American community. New York: Simon & Schuster.
100. Ray, D. (1998). Development economics. Princeton, NJ: Princeton University Press.
101. Santiago, C.E., & Thorbecke, E. (1988). A multisectoral framework for the analysis of labor mobility and development in LDCs: An application to postwar Puerto Rico. Economic Development and Cultural Change, 37(1), 127-148.
102. Sassen-Koob, S. (1989). New York City's informal economy. In A. Portes, M. Castells, & L.A. Benton (Eds.), The informal economy: Studies in advanced and less developed countries (pp. 60-77). Baltimore: Johns Hopkins University Press.
103. Saxenian, A. (2000). The origins and dynamics of production networks in Silicon Valley. In M. Kenney (Ed.), Understanding Silicon Valley (pp. 141-164). Stanford, CA: Stanford University Press.
104. Scott, W.R. (2008). Institutions and organizations (3rd ed.). Thousand Oaks: Sage.
105. Sewell, W.H. (1992). A theory of structure: Duality, agency, and transformation. American Journal of Sociology, 98(1), 1-29.
106. Sindzringe, A. (2006). The relevance of the concepts of formality and informality: A theoretical appraisal. In B. Guha-Khansnobis, R. Kanbur, & E. Ostrom (Eds.), Linking the formal and informal economy: Concepts and policies (pp. 58-74). Oxford, England: Oxford University Press.
107. Spicer, A., McDermott, G.A., & Kogut, B. (2000). Entrepreneurship and privatization in Central Europe: The tenuous balance between destruction and creativity. The Academy of Management Review, 25(3), 630-649.
108. Thelen, K. (1999). Historical institutionalism in comparative politics. Annual Review of Political Science, 2, 369-404.
109. Thomas, A.S., & Mueller, S.L. (2000). A case for competitive entrepreneurship: Assessing the relevance of culture. Journal of International Business Studies, 31(2), 287-301.
110. Tiefenthaler, J. (1994). A multi sector model of female labor force participation: Empirical evidence from Cebu Island, Philippines. Economic Development and Cultural Change, 42(4), 719-742.
111. Torrey, B.B., Smeeding, T.M., & Bailey, D. (1999). Income transitions in Central European households. Economic Development and Cultural Change, 47(2), 237-257.
112. Turner, J.H. (2004). Human institutions: A theory of societal evolution. Lanham, MD: Rowman and Littlefield.
113. Venkatesh, S.A. (2006). Off the books: The underground economy of the urban poor. Cambridge, MA: Harvard University Press.
114. Viswinathan, M. (2011). A micro-level approach to understanding BoP markets. In T. London & S.L. Hart (Eds.), Next generation business strategies for the base of the pyramid (pp. 129-164). Upper Saddle River, NJ: FT Press.
115. Vogel, R.T. (2006). Harder times: Undocumented workers and the US informal economy. Monthly Review, 58(3), 29-40.
116. Wallerstein, I. (1974/2007). World-systems analysis (5th ed.). Durham, NC: Duke University Press.
117. Webb, J.W., Tihanyi, L., Ireland, R.D., & Sirmon, D.G. (2009). You say illegal, I say legitimate: Entrepreneurship in the informal economy. Academy of Management Review, 34(3), 492-510.
118. Weber, M. (1947). The theory of social and economic organization, (A. M. Henderson & T. Parsons, Trans.). New York: Macmillan.
119. Weber, M. (1958). The Protestant ethic and the spirit of capitalism, (T. Parsons, Trans.). New York: Charles Scribner's Sons.
120. Weick, K.E. (1979). The social psychology of organizing (2nd ed.). New York: McGraw-Hill.
121. Williamson, O.E. (1985). The economic institutions of capitalism. New York: Free Press.
122. Wright, M., Filatotchev, I., Hoskisson, R.E., & Peng, M.W. (2005). Strategy research in emerging economies: Challenging the conventional wisdom. Journal of Management Studies, 42, 1-33.
123. Zinnes, C. (2009). Business environment reforms and the informal economy. In B. E. W. Group (Ed.), Cambridge, England: DonorCommittee for Enterprise Development.